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Note 1. Departmental financial performance

This section analyses the financial performance of APSC for the year ended 2017.

Note 1.1: Expenses

Note 1.1a: Employee benefits
  2017
$’000
2016
$’000
Wages and salaries 19,657 19,952
Superannuation
- Defined contribution plans 1,559 1,415
- Defined benefit plans 2,085 2,317
Leave and other entitlements 2,220 2,665
Separation and redundancies 598 984
Total employee benefits 26,119 27,334

Accounting policy

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

Note 1.1b: Suppliers
  2017
$’000
2016
$’000
Goods and services supplied or rendered
Consultants 810 665
Contractors 6,337 6,435
Travel 815 962
Venue hire and catering 803 846
Training 621 514
Information and communications technology 2,145 2,019
Facilities expense 139 110
Other goods and services 312 520
Total goods and services supplied or rendered 11,982 12,071
Other suppliers
Operating lease rentals 612 2,609
Worker compensation expenses 413 301
Total other suppliers 1,025 2,922
Total suppliers 13,007 14,993

Leasing commitments

The APSC 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.

The APSC moved its head office in August 2017. An existing lease commitment for office accommodation for $9.7 million over 5 years was transferred, with effect from 21 August 2017, to the Department of Social Services. For the new office accommodation, a commitment of approximately $11.5 million over 10 years will be entered. Lease details were still under negotiation with the landlord as at the time of signing the financial statements.

  2017
$’000
2016
$’000
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Within 1 year 2,293 2,542
Between 1 to 5 years 8,608 9,360
More than 5 years - 1,512
Total operating lease commitments 10,901 13,414

Commitments are disclosed net of GST.

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 1.1c: Write-down and impairment of assets
  2017
$’000
2016
$’000
Impairment on goods and services receivable 1 -
Impairment of property, plant and equipment 253 -
Total write-down and impairment of assets 254 -

Note 1.2: Own-source income

Note 1.2a: Sale of goods and rendering of services
  2017
$’000
2016
$’000
Own-source revenue
Sale of goods 5 5
Rendering of services 20,760 21,845
Total sale of goods and rendering of services 20,765 21,850

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

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.

Note 1.2b: Resources received free of charge
  2017
$’000
2016
$’000
Audit services 43 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
  2017
$’000
2016
$’000
Appropriations
Departmental appropriations 20,334 20,638
Total revenue from Government 20,334 20,638

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.