Note 1. Departmental financial performance 2017-18

This section analyses the financial performance of APSC for the year ended 2018.

Note 1.1: Expenses

	2018 $’000	2017 $’000
Note 1.1a: Employee benefits
Wages and salaries	19,236	19,657
Superannuation
Defined contribution plans	1,771	1,559
Defined benefit plans	1,939	2,085
Leave and other entitlements	2,359	2,220
Separation and redundancies	708	598
Total employee benefits	26,013	26,119

Accounting policy

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

Note 1.1b: Suppliers
Goods and services supplied or rendered
Consultants	729	810
Contractors	8,233	6,337
Travel	748	815
Venue hire and catering	901	803
Training	300	621
Information and communications technology	2,759	2,145
Facilities expense	191	139
Other goods and services	828	312
Total goods and services supplied or rendered	14,689	11,982
Other suppliers
Operating lease rentals	2,023	612
Workers compensation expenses	438	413
Total other suppliers	2,461	1,025
Total suppliers	17,150	13,007

Leasing commitments

The APSC in its capacity as lessee has three leases for office accommodation and one vehicle lease. Each office accommodation lease has annual fixed percentage increases in the lease payments. For all three accommodation leases, the initial period of office accommodation is still current and these leases do not have purchase options. The lease for the head office has the option to renew for two five year periods, whilst the other two accommodation leases do not have renewal options.

The APSC moved its head office in August 2017. The former lease commitment for office accommodation of $9.7 million over 5 years was transferred to the Department of Social Services. For the new office accommodation, a commitment of approximately $11.3 million over 9 years and 8 months was entered, with lease payments commencing in July 2017.

	2018 $’000	2017 $’000
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Within 1 year	1,501	2,293
Between 1 to 5 years	5,840	8,608
More than 5 years	4,595	-
Total operating lease commitments	11,936	10,901

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
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 revenue

	2018 $’000	2017 $’000
Own-source revenue
Note 1.2a: Sale of goods and rendering of services
Sale of goods	3	5
Rendering of services	20,874	20,760
Total sale of goods and rendering of services	20,877	20,765

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
Audit services	40	43

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

	2018 $’000	2017 $’000
Note 1.2c: Revenue from Government
Appropriations
Departmental appropriations	22,811	20,334
Total revenue from Government	22,811	20,334

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.