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Note 1. Departmental financial performance

This section analyses the financial performance of APSC for the year ended 2016.

Note 1.1: Expenses

Note 1.1a: Employee benefits
  2016
$'000
2015
$'000
Wages and salaries 19,952 20,189
Superannuation
- Defined contribution plans 1,415 1,503
- Defined benefit plans 2,317 2,276
Leave and other entitlements 2,665 2,302
Separation and redundancies 984 -
Total employee benefits 27,334 26,270

Accounting policy

The accounting policy for employee related expenses is contained in note 5.1 Employee provisions.

Note 1.1b: Suppliers
  2016
$'000
2015
$'000
Goods and services supplied or rendered
Consultants 665 1,375
Contractors 6,435 7,112
Travel 962 1,003
Venue hire and catering 846 779
Publications and printing 98 184
Training 514 320
Information and communications technology 2,019 2,355
Facilities expense 110 121
Other goods and services 422 687
Total goods and services supplied or rendered 12,071 13,936
Other suppliers
Operating lease rentals in connection with:
- Minimum lease payments 2,301 2,312
- Contingent rentals 92 71
Sublease 228 226
Worker compensation expenses 301 433
Total other suppliers 2,922 3,042
Total suppliers 14,993 16,978

Leasing commitments

The Australian Public Service Commission in its capacity as lessee has three leases for office accommodation and one vehicle lease. One office accommodation lease agreement has payments that are subject to a rent review. For all three accommodation leases, the initial period of office accommodation are still current and these leases do not have renewal or purchase options.

  2016
$'000
2015
$'000
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Within 1 year 2,796 2,789
Between1 to 5 years 10,296 9,603
More than 5 years 1,664 4,108
Total operating lease commitments 14,756 16,500

Accounting policy

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

Note 1.2: Own-source income

Note 1.2a: Sale of goods and rendering of services
  2016
$'000
2015
$'000
Own-source revenue
Sale of goods 5 6
Rendering of services 21,845 22,734
Total sale of goods and rendering of services 21,850 22,740

Accounting policy

Revenue from the sale of goods is recognised when:

  • the risks and rewards of ownership have been transferred to the buyer
  • the APSC retains no managerial involvement nor effective control over the goods

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

  • the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  • the probable economic benefits associated with the transaction will flow to the APSC.

The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of total services to be performed.

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

  2016
$'000
2015
$'000
Note 1.2b: Resources received free of charge
Remuneration of auditors 42 42

Accounting policy

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

Revenue from Government

Note 1.2c: Revenue from Government
  2016
$'000
2015
$'000
Appropriations
Departmental appropriations 20,638 21,637
Total revenue from Government 20,638 21,637

Accounting policy

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the APSC gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.