Annual Report 2018-19

This section provides an account of the expenses incurred by the commission in delivering services.

3.1. Employee expenses 3.1.1. Employee expenses in the comprehensive operating statement 3.1.2. Employee benefits in the balance sheet 3.2. Supplies and services

Expenses incurred in delivery of services

		2019	2018
	Notes	$	$
Employee expenses	3.1.1	14,722,716	15,323,564
Depreciation and amortisation	5.1.1	35,374	187,836
Finance lease interest		439	2,421
Capital asset charge		84,067	2,053
Supplies and services	3.2	8,711,830	8,513,930
Total expenses incurred in delivery of services		23,554,426	24,029,804

3.1 Employee expenses

3.1.1. Employee expenses in the comprehensive operating statement

Salaries and wages	11,298,880	11,942,828
Superannuation
- Defined contribution plans	1,149,346	1,154,263
- Defined benefits expense	14,876	14,473
Annual and long service leave expense	1,519,204	1,514,443
On-costs	740,410	697,557
Total employee expenses	14,722,716	15,323,564

Employee expenses comprise all costs related to employment including wages and salaries, superannuation, leave entitlements, redundancy payments, fringe benefits tax, and WorkCover premiums.

Superannuation expenses represent the employer contributions for members of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period.

DTF centrally recognises, on behalf of the State as the sponsoring employer, the net defined benefit cost and the defined benefit liability or surplus related to the members of these plans as administered items. Refer to DTF’s annual financial statements for more detailed disclosures in relation to these plans.

Employees of the commission are entitled to receive superannuation benefits and the commission contributes to both defined benefit and defined contribution plans. The defined benefit plans provide benefits based on years of service and final average salary. The basis for contributions are determined by the various schemes.

Superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the commission.

3.1.2. Employee benefits in the balance sheet

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date and recorded as an expense during the period the services are delivered.

	2019	2018
Provisions	$	$
Current:
Annual leave
- Unconditional and expected to settle within 12 months	777,768	855,633
- Unconditional and expected to settle after 12 months	184,083	249,765
Long service leave
- Unconditional and expected to settle within 12 months	279,644	300,165
- Unconditional and expected to settle after 12 months	1,758,885	1,756,203
Termination entitlements	-	303,893
Performance bonus	36,500	-
Total current provisions for employee benefits	3,036,880	3,465,659
Non-current:
Long service leave	330,337	305,108
Total non-current provisions for employee benefits	330,337	305,108
Total provisions for employee benefits	3,367,217	3,770,767

Provisions made in respect of employee benefits expected to be wholly settled within 12 months are measured at their nominal values, using the remuneration rate expected to apply at the time of settlement. Provisions made in respect of employee benefits which are not expected to be wholly settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the commission in respect of services provided by employees up to reporting date. The liability is classified as a current liability where the commission does not have an unconditional right to defer settlement for at least 12 months after the reporting date. The long service leave liability is classified as non-current where the commission has an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service.

Termination entitlements are payable when employment is terminated before normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment. Termination entitlements are recognised when the commission is demonstrably committed to terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination entitlements as a result of an offer made to encourage voluntary redundancy.

3.2. Supplies and services

	2019	2018
	$	$
Supplies and services
Rentals and outgoings	1,062,367	1,013,760
Purchases of services	5,303,006	5,779,097
Other	2,346,457	1,721,073
Total supplies and services	8,711,830	8,513,930

Supplies and services are recognised as an expense in the reporting period in which they are incurred.

Rental payments are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

Other include mainly sundry expenses such as software maintenance and licences, advertising and promotions and other office related expenses.