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Notes to the Financial Statements

Note 1: Overview

1.1 Objectives of the Workplace Gender Equality Agency (WGEA)

The Workplace Gender Equality Agency (WGEA) is an Australian Government controlled entity. It is a not-for-profit entity.

WGEA is chartered through the Workplace Gender Equality Act 2012 with both regulatory and educative functions and responsibilities.

The continued existence of the WGEA in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the WGEA's administration and programs.

The WGEA’s outcome is to promote and improve gender equality in Australian workplaces including through the provision of advice and assistance to employers and the assessment and measurement of workplace gender data. The WGEA has only one outcome.

1.2 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:

a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) and

b) Australian Accounting Standards - Reduced Disclosure Requirements 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 in accordance with the historical cost convention, except for certain assets and liabilities 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 dollar.

1.3 Significant Accounting Judgments and Estimates

In the process of applying the accounting policies listed in this note, the WGEA has not identified accounting assumptions or estimates that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

All new/revised/amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect on the entity’s financial statements.

Future Australian Accounting Standard Requirements

The WGEA adopted AASB 16 Leases from 2019-20. The standard requires the net present value of payments under most operating leases to be recognised as assets and liabilities for the period for which we have the right to use an asset, including optional periods when it is reasonably certain to extend a lease. There has been also change to the expense character (rent expenses replaced with depreciation and interest expenses). On transition to AASB 16, the WGEA recognised additional right-of-use assets and additional lease liabilities, recognising the difference in retained earnings.

The WGEA adopted AASB 15 Revenue from Contracts with Customers from 2019-20. The standard requires revenue from such contracts to be recognised as the entity transfers goods and services to the customer. The standard does not have a material impact on the financials statements.

AASB 1058 Income of Not-for-Profit Entities (NFP) has been applied from 2019-20. The requirements of AASB 1058 more closely reflect the economic reality of NFP entity transactions that are not contracts with customers (as defined in AASB 15). The timing of income recognition depends on whether such a transaction gives rise to liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by an entity. The standard does not have a material impact on the financial statements.

1.5 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

The WGEA had no contingent assets and liabilities (2019:nil).

1.6 Taxation

The WGEA 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:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

1.7 Comparative changes

Where required by accounting standards comparative figures have been adjusted to conform with changes to presentation for the current financial year. Expenses disclosed in note 3 were reviewed and reclassified where appropriate to better represent the nature of expenditure.

Note 2: Events After The Reporting Period

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the company based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the company operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the company unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

Note 3: Expenses

Note 3A: Employee Benefits

2020

$

2019

$

Wages and salaries

2,610,418

2,400,842

Superannuation:

Defined contribution plans

325,793

290,783

Defined benefit plans

108,598

98,276

Leave and other entitlements

409,588

194,411

Other employee expenses

43,138

43,426

Total employee benefits

3,497,535

3,027,738

Refer to note 9A for accounting policies related to Employee Benefits

Note 3B: Suppliers

2020

$

2019

$

Consultants and contractors

262,140

101,130

IT and office equipment

722,008

1,559,550

Travel related

114,006

206,529

Printing, stationery and publications

67,918

144,609

Minimum operating lease payments

-

420,448

Other Building related cost

200,796

173,750

Workers Compensation Expenses

5,407

5,736

Audit, legal, subscription, training and insurance

259,867

167,731

Other

30,386

89,962

Total goods and services

1,662,528

2,869,445

Goods and services are made up of:

Provision of goods

127,101

1,109,918

Rendering of services

1,535,427

1,759,527

Total goods and services

1,662,528

2,869,445

Accounting Policy

The WGEA has applied AAB16 from July 2019 using the modified retrospective approach and therefore the comparative information has not been restated.

Note 3C: Depreciation and Amortisation

2020

$

2019

$

Depreciation:

Leasehold improvements

72,334

54,720

Depreciation Short Term Lease RoU

426,802

-

Plant and equipment

38,419

18,325

Total depreciation

537,555

73,045

Amortisation:

Intangibles

57,982

603,890

Total depreciation and amortisation

595,537

676,935

Note 4: Income

Note 4A: Rendering of Services

2020

$

2019

$

Rendering of services

226,364

131,682

Total

226,364

131,682

Disaggregation of revenue from contracts with customers

Major product/service line:

Research services

226,364

131,682

Total

226,364

131,682

Type of customers:

Non-government entities

226,364

131,682

Total

226,364

131,682

Timing of tranfer of goods and services:

Point in time

226,364

131,682

Total

226,364

131,682

The WGEA adopted AASB 15 Revenue from Contracts with Customers from 2019-20. Revenue recognition is consistent with paragraphs 31 and 35 of AASB 15.

Revenue from rendering of services is recognised when control has been transferred to the buyer. The revenue is recognised when a performance obligation is satisfied by:

a) transferring a promised good or service to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

b) the customer simultaneously receives and consumes the benefits.

Note 4B: Other Revenue

2020

$

2019

$

Resources received free of charge

Related entities - Auditor's remuneration

37,000

39,500

External entities - in kind support

9,600

9,600

Total

46,600

49,100

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.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.

Note 4E: Revenue from Government

2020

$

2019

$

Appropriations:

Departmental appropriation

5,531,000

5,817,000

Total revenue from Government

5,531,000

5,817,000

Amounts appropriated for departmental outputs for the year (adjusted to reflect formal additions, reductions and restructures) are recognised as revenue from government when the Agency gains control of the appropriation.

Appropriations receivable are recognised at their nominal amounts (note 5B ).

Amounts appropriated which are designated as equity injections (less any formal reductions) and the departmental capital budget are recognised directly in contributed equity in that year (statement of changes in equity).

Note 5: Financial Assets

Note 5A: Cash and Cash Equivalents

2020

$

2019

$

Cash on hand or on deposit

249,615

264,029

Cash is recognised at its nominal amount and is held with the Reserve Bank of Australia in a current account.

Note 5B: Trade and Other Receivables

2020

$

2019

$

Services

-

2,964

Appropriations receivable for existing programmes

2,145,695

878,173

GST receivable from the Australian Taxation Office

44,733

107,576

Total trade and other receivables (net)

2,190,428

988,713

Receivables are expected to be recovered within 12 months and are not overdue. Credit terms are net 30 days (2019: 30 days).

Receivables are measured at amortised cost using the effective interest method less impairment and carrying value of receivables approximates fair value. Receivables are assessed for impairment at the end of each reporting period.

Appropriations receivable are undrawn appropriations controlled by the Agency but held in the Official Public Account under the Government's just in time drawdown arrangements.

Trade receivables, loans and other receivables that have fixed or determinable payments and that are not quoted in an active market are classified as "loans and receivables".

Categories of Financial Instruments

Notes

2020

$

2019

$

Financial Assets at amortised cost

Cash and cash equivalents

5A

249,615

264,029

Services

5B

-

2,964

Carrying amount of financial assets

249,615

266,993

Financial Liabilities measured at amortised cost

Trade creditors

5A

32,306

17,249

Accruals

5B

20,971

256,870

Carrying amount of financial assets

53,277

274,119

The net fair values of the financial instruments approximate their carrying amounts.

Aggregate assets and Liabilities

2020

$

2019

$

Assets expected to be recovered in:

No more than 12 months

2,461,330

1,294,451

More than 12 months

3,584,824

512,702

Total assets

6,046,154

1,807,153

Liability to be expected to be recovered in:

No more than 12 months

1,848,614

799,460

More than 12 months

393,185

349,951

Total liabilities

2,241,799

1,149,411

Accounting Policy

Financial assets

With the implementation of AASB 9 Financial Instruments for the first time in 2019, financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Financial liabilities

With the implementation of AASB 9 Financial Instruments for the first time in 2019, financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Comparatives have not been restated on initial application.

Note 6: Non-Financial Assets

Note 6: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2019-2020)

Intangibles

$

Leasehold improvements

$

Buildings

$

Plant and equipment

$

Total

$

As at 1 July 2019

Gross book value

2,934,269

338,704

-

351,554

3,624,527

Accumulated depreciation and amortisation

(2,791,179)

(85,988)

-

(234,658)

(3,111,825)

Net book value 1 July 2019

143,090

252,716

-

116,896

512,702

Additions by purchase

2,024,662

7,147

-

147,242

2,179,051

Right-of-use assets

-

-

1,493,806

-

1,493,806

Disposal

-

-

-

(15,404)

(15,404)

Disposal (amortisation)

-

-

-

10,206

10,206

Depreciation expense

(57,982)

(72,334)

-

(38,419)

(168,735)

Deprecation on right-of-use assets

-

-

(426,802)

-

(426,802)

Net book value 30 June 2020

2,109,770

187,529

1,067,004

220,521

3,584,824

As at 30 June 2020

Gross book value

2,959,270

345,851

1,493,806

483,392

5,282,319

Work in progress

1,999,662

-

-

-

1,999,662

Accumulated depreciation

(2,849,161)

(158,322)

(426,802)

-262,872

(3,697,157)

Net book value 30 June 2020

2,109,771

187,529

1,067,004

220,520

3,584,824

Acquisition of Assets

Purchases of non-financial assets are initially recognised at cost in the Statement of Financial Position, except for purchases costing less than $2,000 (2019: $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).

The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Property, Plant and Equipment

Revaluations

Following initial recognition at cost, leasehold improvements and plant and equipment are carried at fair value. Carrying amounts are reviewed every year to determine if an independent valuation is required. The regularity of independent valuations depend upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increments are 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 in the surplus/deficit.

Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class. Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset.

All revaluations were conducted in accordance with the revaluation policy. An independent valuer (JLL) conducted the revaluations as at 30 June 2019. Revaluation increments for furniture and fittings were credited to the asset revaluation reserve included in the equity section of the Statement of Financial Position.

Depreciation

Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to WGEA, using in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvement or the lease term.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2020

2019

Leasehold improvements

Lease term

Lease term

Plant and equipment

3 to 9 years

3 to 9 years

Impairment

All assets were assessed for impairment at 30 June 2020. 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 found for property, plant and equipment during the current year.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Intangibles

The Agency's intangibles comprise internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the Agency's software are 5 years (2019: 5 years).

All software assets were assessed for indications of impairment as at 30 June 2020.

Impairment tests were carried out during the year which resulted in no assets being impaired (2019: Nil).

Lease Right of Use (RoU) Assets

AASB 16 takes effect from 1 January 2019 replacing AASB 117 Leases .The WGEA has recognised a right-of-use asset representing its right to use underlying leased asset and a lease liability representing its obligation to make lease payments.

The depreciation rates for RoU assets are based on the commencement date to the earlier of the end of the useful life of the RoU asset or the end of the lease term.

Note 7: Payables

Note 7A: Suppliers

2020

$

2019

$

Trade creditors

32,306

17,249

Accruals

20,971

256,870

Total supplier payables

53,277

274,119

Settlement is usually made within 30 days.

Note 7B: Other Payables

2020

$

2019

$

Salaries and wages

49,206

21,947

Superannuation

9,893

5,739

Fixed lease increase

1,096,509

48,448

Total other payables

1,155,608

76,134

Total other payables are expected to be settled in:

No more than 12 months

1,155,608

76,134

More than 12 months

-

-

Total other payables

1,155,608

76,134

Financial liabilities are recognised and derecognised upon 'trade date'.

Supplier and other payables are recognised at amortised amounts. Liabilities are recognised to the extent that the goods or services have been received, even if they have not yet been invoiced. Settlement was usually made within 30 days.

The net fair values of the financial instruments approximate their carrying amounts.

Note 8: Provisions

Note 8A: Employee Provisions

2020

$

2019

$

Leave - no more than 12 months

639,728

449,207

Leave - more than 12 months

199,246

156,012

Total employee provisions

838,974

605,219

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of the reporting period are measured at their nominal amounts.

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 the entity 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 the entity’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination.

Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

WGEA's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) and various choice schemes.

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.

WGEA makes employer contributions to the employees' superannuation schemes at rates determined by the Entity's Enterprise Agreement. The entity 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.

Note 8B: Provision for restoration obligation

2020

$

2019

$

Obligation - more than 12 months

193,939

193,939

Total other provisions

193,939

193,939

Provision for restoration $

2020

2019

Carrying amount 1 July 2019

193,939

189,310

Unwinding of the discount

-

4,629

Closing balance 30 June 2020

193,939

193,939

WGEA currently has an agreement (2019:one) for the lease of premises which has a provision requiring WGEA to restore the premises to their original condition at the conclusion of the lease. WGEA has made a provision to reflect the value of this obligation.

Note 9 A: Key Management Personnel Renumeration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The WGEA has determined, in accordance with AASB 124, that the WGEA Director, is the only position to meet the definition of Key Management Personnel. Key management personnel remuneration is reported in the table below:

2020

$

2019

$

Short-term employee benefits

242,701

237,941

Post-employment benefits

23,068

24,024

Other long-term employee benefits

18,672

18,306

Total key management personnel remuneration expenses1

284,441

280,271

The total number of key management personnel that are included in the above table is 1 (2019:1)

1 The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity. The actuarial changes to Long Service Leave (LSL) provisons are excluded from the KMP remuneration disclosures in the financial statements.

Note 9B: Related party relationships

Significant transactions with related parties can include:

  • the payments of grants or loans;
  • purchases of goods and services;
  • asset purchases, sales transfers or leases;
  • debts forgiven; and
  • guarantees.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by WGEA, it has been determined that there are no related party transactions to be separately disclosed.

Note 10: Appropriations

Table A: Annual Appropriations ('Recoverable GST exclusive')

Annual Appropriations for 2020

Annual appropriation

$

Adjustments

to Appropriation(b)

$

Total appropriation

$

Appropriation applied (current and prior years)

$

Variance(c)

$

DEPARTMENTAL

Ordinary annual services

5,531,000

226,364

5,757,364

5,380,193

377,171

Capital Budget (a)

3,055,000

-

3,055,000

2,179,052

875,948

Total departmental

8,586,000

226,364

8,812,364

7,559,245

1,253,119

Annual Appropriations for 2019

Total appropriation

$

Adjustments

to Appropriation

$

Total appropriation

$

Appropriation applied (current and prior years)

$

Variance

$

DEPARTMENTAL

Ordinary annual services

5,817,000

131,682

5,948,682

5,736,280

212,402

Capital Budget

249,000

-

249,000

244,919

4,081

Total departmental

6,066,000

131,682

6,197,682

5,981,199

216,483

Notes

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

(b)These adjustments comprise PGPA Act Section 74 receipts.

(c) Variance reflects the movement in the cash held and the appropriation receivable over the year.

Table B: Unspent Annual Appropriations ('Recoverable GST exclusive')

Authority

2020

$

2019

$

DEPARTMENTAL

2019-20 Appropriation Act 1

2,145,706

2018-19 Appropriation Act 1

-

776,000

2018-19 Appropriation Act 3

-

102,173

Cash and cash equivalents

249,615

264,029

Total

2,395,321

1,142,202