Notes to and forming part of the financial statements

Overview

The department is the secretariat to the Australian Senate. All functions derive from this purpose and its work is substantially driven by the requirements of the Senate and senators. The department is a non-corporate Commonwealth entity, domiciled in Australia. The registered office is Parliament House, Canberra.

Basis of preparation

The financial statements are required by section 42 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The financial statements and notes have been prepared in accordance with:

  • the Public Governance, Performance and Accountability (Financial Reporting Rule) 2015 (FRR), and
  • Australian Accounting Standards and Interpretations – Simplified disclosures for Tier 2 Entities under AASB 1060 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 are in accordance with 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 thousand dollars unless otherwise specified.

New accounting standards

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

Future Australian Accounting Standard requirements

No new or revised pronouncements were issued by the AASB prior to the finalisation of the financial statements which are expected to have a material impact on the department in future reporting periods.

Taxation

The department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Events after the reporting period

No events have occurred after balance date that should be brought to account or noted in the 2023-24 financial statements.

Note 1: Financial performance

Note 1.1A: Employee benefits
  2024
$'000
2023
$'000
Wages and salaries 19,332 17,412
Superannuation
Defined benefit plans 1,158 1,127
Defined contribution plans 2,218 2,034
Leave and other entitlements 3,044 3,232
Total employee benefits 25,752 23,805

Accounting policy

Superannuation

Employees of the department are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), Public Sector Superannuation accumulation plan (PSSap) or other elected defined contribution schemes.

The CSS and PSS are defined benefit schemes for the Commonwealth. 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 by the Department of Finance as an administered item.

The department makes employer contributions to the relevant employees' defined benefit schemes at rates determined by an actuary to be sufficient to meet the current cost to the government and accounts for the contributions as if they were contributions to defined contribution plans.

Leave and other entitlements

Accounting policies for leave and other entitlements are contained at note 3A – Employee Provisions.

Note 1.1B: Suppliers
  2024
$'000
2023
$'000
Goods and services
Employee related supplier expenses 197 168
Consultants and contractors 361 334
Audit fees 224 208
Travel 843 768
Hire charges and hospitality 175 134
Subscriptions, media and publications 610 525
General office expenses 435 450
Office accommodation 2,417 2,211
Total goods and services 5,262 4,798
Goods supplied 274 309
Services rendered 4,988 4,489
Total goods ands services supplied or rendered 5,262 4,798
Other supplier expenses
Workers compensation 107 56
Total other supplier expenses 107 56
Total supplier expenses 5,369 4,854

Audit fees include internal audit expenses and ANAO's estimated audit services fee (a resource received free of charge).

Accounting policy

Short-term leases and leases of low-value assets

The department has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000 per asset).The department recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Note 1.2: Own-source income
  2024
$'000
2023
$'000
Note 1.2A: Revenue from contracts with customers
Sale of goods 60 60
Rendering of services 456 439
Total revenue from contracts with customers 516 499
Disaggregation of revenue from contracts with customers
Major product / service type:
Provision of corporate services 121 115
Provision of parliamentary education services 335 324
Sale of goods 60 60
516 499
Type of customer:
Australian Government entities (related parties) 476 458
Non-government enitites 40 41
516 499
Timing of transfer of goods and services:
Overtime 372 365
Point in time 144 134
516 499
Note 1.2B: Other revenue
Resources received free of charge
Office accommodation at Parliament House 2,417 2,211
Financial statement audit services from ANAO 91 89
Total other revenue 2,508 2,300

Accounting policy

Revenue

The department receives revenue from appropriations, the rendering of services and the sale of goods.

Revenue from sale of goods is recognised when control has been transferred to the buyer. The department reviews contracts with customers to ascertain if the contract is in scope of AASB 15 and if the performance obligations are required by an enforceable contract and they are sufficiently specific to enable the department to determine when they have been satisfied.

The department had no remaining or unsatisfied performance obligations as at
30 June 2024.

The transaction price is the total amount of consideration to which the department expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

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 the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Resources received free of charge

Resources received free of charge are recognised in the statement of comprehensive income as revenue where a fair value can be reliably measured and the services would have been purchased if they had not been provided free of charge. Use of those resources is recognised as an expense.

The department's resources received free of charge relate to audit services from the Australian National Audit Office and accommodation at Parliament House from the Department of Parliamentary Services.

Revenue from government

The departmental appropriation for the financial year (adjusted for any formal additions and reductions) is recognised as revenue from government when the department gains control of the appropriation. Appropriations receivable are recognised at their nominal amounts.

Note 2: Financial position

Note 2.1: Financial assets
2024
$'000
2023
$'000
Note 2.1A: Cash and cash equivalents
Cash at bank 213 226
Total cash and cash equivalents 213 226
Note 2.1B: Trade and other receivables
Appropriation receivable 13,511 14,267
Goods and services 88 8
GST receivable (from ATO) 20 38
Other 19 -
Total trade and other receivables 13,638 14,313

Accounting policy

Financial assets

Financial assets are financial instruments

Cash is recognised at its nominal amount. Cash and cash equivalents include cash on hand and deposits in bank accounts.

Trade and other receivables are recognised at nominal amounts due less any impairment allowance account. Collectability of debts is continually reviewed. Allowances are made on an expected loss basis.

Financial assets are recognised when the department becomes party to a contract and has a legal right to receive cash. Loans and receivables are assessed for impairment on initial recognition. Impairment allowances are made on a lifetime expected loss basis. Financial assets are derecognised when the contractual rights expire or upon payment.

The fair values of the department's financial assets and liabilities approximate their carrying amounts.

Note 2.2: Non-financial assets Reconciliation of opening and closing balances of plant and equipment (P&E) and intangibles
2024
$'000 $'000 $'000
P&E Intangibles – computer software Total
As at 1 July 2023
Gross book value 2,411 347 2,758
Accumulated depreciation, amortisation and impairment (360) (248) (608)
Total as at 1 July 2023 2,051 99 2,150
Additions by purchase 96 - 96
Depreciation and amortisation expense (173) (42) (215)
Depreciation on right-of-use assets (26) - (26)
Total as at 30 June 2024 1,948 57 2,005
Total as at 30 June 2024 represented by:
Gross book value 2,507 347 2,854
Accumulated depreciation, amortisation and impairment (559) (290) (849)
Total as at 30 June 2024 1,948 57 2,005
Carrying amounts of right-of-use assets 24 - 24

Right-of-use and intangible assets are measured and carried at cost. Plant and equipment assets are carried at fair value following initial recognition at cost.

Contractual commitments for the acquisition of plant, equipment and intangible assets

The department has no (2023: nil) contractual commitments payable within 1 year for the acquisition of plant and equipment.

Amounts for capital commitments are GST inclusive.

Accounting policy

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, 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. Financial assets are initially measured at fair value.

Plant and equipment

Revaluations

Following initial recognition at cost, plant and equipment assets (excluding right-of-use assets) are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Carrying amounts are reviewed every year to determine if an independent valuation is required. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is 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 through operating result. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset.

Depreciation

Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the department, using in all cases the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current, and future reporting periods, as appropriate.

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

Asset class 2024 2023
Plant and equipment 5 to 15 years 5 to 15 years
Furniture and fittings 5 to 100 years 5 to 100 years

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

Impairment

All assets were assessed for indications of impairment at 30 June 2024 and none were identified.

Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment loss recognised if the asset's recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset.

Derecognition

An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Gains or losses from disposal of plant and equipment are recognised when control of the asset has passed to the buyer.

Lease right-of-use assets

Leased right-of-use assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

Following initial application, an impairment review is undertaken for any right-of-use lease assets that shows indicators of impairment and an impairment loss is recognised against any asset that is impaired. Lease right-of-use assets continue to be measured at cost after initial recognition in Commonwealth agency, General Government Sector and Whole of Government financial statements.

Fair value measurement

All plant and equipment is measured at fair value in the statement of financial position. When estimating fair value, market prices (with adjustments) are used where available. Where market prices are not available, depreciated replacement cost is used. A reconciliation of movements in plant and equipment is included above.

Intangibles

The department's intangible assets comprise of internally developed software and purchased 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 department's software is 3 to 7 years (2023: 3 to 7 years).

All software assets were assessed for indications of impairment as at 30 June 2024

Inventories

Inventories held for sale are valued at the lower of cost and net realisable value.

Note 2.3: Payables
  2024
$'000
2023
$'000
Note 2.3A: Supplier and other payables
Trade creditors and accruals 429 317
Salaries and wages 588 611
Superannuation 93 90
FBT payable (to ATO) 69 80
Total supplier and other payables 1,179 1,098
Note 2.3B: Interest bearing liabilities
Leases 32 50
Total interest bearing liabilities 32 50
Lease liabilities analysis
The department's lease liability maturity profile is as follows:
Within 1 year 18 21
Between 1 to 5 years 14 29
Total lease liabilities 32 50

The above lease disclosure should be read in conjunction with the accompanying notes.

Contingent liabilities and contingent assets

The department had no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2024 (2023: nil).

Accounting policy

Payables

Trade creditors and accruals are financial instruments.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Supplier and other payables are derecognised on payment. Supplier payables are settled within 20 days.

The liabilities for salaries and superannuation recognised as at 30 June 2024 represents outstanding contributions for the final pay fortnight of the year.

For all new contracts entered into, the department considers whether the contract is, or contains, a lease. A lease is defined as 'a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration'.

Once it has been determined that a contract is, or contains, a lease, the lease liability is initially measured at the present value of the lease payments unpaid at the commencement date, discounted using the interest rate implicit in the lease, if that rate is readily determinable, or the department's incremental borrowing rate.

Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification to the lease. When the lease liability is remeasured, the corresponding adjustment is reflected in the right of use asset or profit and loss depending on the nature of the reassessment or modification.

Note 2.4: Current / non-current distinction for assets and liabilities
  2024
$'000
2023
$'000
Assets expected to be recovered in:
No more than 12 months
Cash and cash equivalents 213 226
Trade and other receivables 13,638 14,313
Prepayments 282 257
Plant and equipment (right-of-use assets) 18 21
Inventories 124 122
Total no more than 12 months 14,275 14,939
More than 12 months
Plant and equipment (excluding right-of-use) 1,916 2,001
Plant and equipment (right-of-use assets) 14 29
Intangibles – computer software 57 99
Total more than 12 months 1,987 2,129
Total assets 16,262 17,068
Liabilities expected to be settled in:
No more than 12 months
Suppliers 429 317
Other payables 750 781
Leases 18 21
Employee provisions 1,679 1,596
Total no more than 12 months 2,876 2,715
More than 12 months
Leases 14 29
Employee provisions 5,929 5,818
Total more than 12 months 5,943 5,847
Total liabilities 8,819 8,562

Note 3: People and relationships

Note 3A: Employee provisions
  2024
$'000
2023
$'000
Leave
Annual leave 2,275 2,183
Long service leave 5,333 5,231
Total employee provisions 7,608 7,414

Accounting policy

Employee benefits

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.

The liability for employee benefits includes provision for annual leave and long service leave. Leave provisions involve assumptions based on the expected tenure of existing staff, patterns of leave claims and payouts, future salary movements and future discount rates.

The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will apply at the time the leave is taken, plus the department's employer superannuation contribution rates, and applicable on-costs, to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined using the shorthand method issued by the Department of Finance. The estimate of the present value of the liability takes into account attrition rates and pay increases though promotion and enterprise agreements.

Note 3B: Key management personnel remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the department, directly or indirectly, including any director (whether executive or otherwise) of the department.1

The department has determined the key management personnel to be the Clerk, Deputy Clerk, Clerk Assistants and the Usher of the Black Rod. Key management personnel remuneration is reported in the table below.

  2024
$'000
2023
$'000
Key management personnel remuneration
Short-term employee benefits 1,618 1,590
Post-employment benefits 250 243
Other long-term employee benefits 97 118
Total key management personnel remuneration 1,965 1,951

The total number of key management personnel included in the above table is six individuals (2023: six).

  1. The President of the Senate is not considered key management personnel. The powers of the President do not give rise to a capacity to plan, direct or control the activities of the department, or significantly influence the department in its financial or operating policy decisions.

On 1 July 2024, the department identified an error in the calculation of remuneration paid to a senior executive during 2023-24 financial year that resulted in an overpayment of $19,399 and breach of the Parliamentary Service Act 1999. The senior executive was notified on 1 July 2024 and the amount was repaid on 4 July 2024. Appropriate actions have been taken to prevent a similar issue occurring in the future. The amount is not included in the remuneration totals above and a receivable has been recognised at Note 2.1B.

Prior year adjustment

An error was made in the prior year disclosure of key management personnel remuneration due to an understatement of the leave accrual which impacted the short-term and other long-term benefits. The revised disclosure (comparative above) does not impact the financial statements, other than Notes 3B and 3D, and is summarised below:

  Before
adjustment
$'000
After
adjustment
$'000
Net
movement
$'000
Short-term employee benefits 1,577 1,590 13
Post-employment benefits 243 243 -
Other long-term employee benefits 33 118 85
Total key management personnel remuneration 1,853 1,951 98

 

Note 3C: Related party transactions

Related parties to the department are defined as key management personnel and close family members of key management personnel. A related party transaction is a transfer of resources, services or obligations between the department and a related party, regardless of whether a price is charged.

During 2023-24, there were no related party transactions (2023: nil).

Note 3D: Executive remuneration disclosure – Key management personnel
    Short-term benefits Post-employment benefits Other long-term benefits    
Name Position title Base salary
$
Bonuses
$
Other benefits and allowances
$
Superannuation contributions
$
Long service leave
$
Other long-term benefits
$
Termination benefits
$
Total remuneration
$
R Pye Clerk of the Senate 393,460 - 1,767 61,589 15,859 - - 472,675
J Morris Deputy Clerk of the Senate 234,151 - 20,482 47,810 21,165 - - 323,608
T Bryant Clerk Assistant, Table 219,186 - 20,482 38,448 16,883 - - 294,999
R Callinan Clerk Assistant, Procedure 235,355 - 20,482 31,576 13,676 - - 301,089
J Begley Usher of the Black Rod 220,861 - 20,482 31,530 14,902 - - 287,775
T Matulick Clerk Assistant, Committees 211,503 - 20,290 39,004 14,237 - - 285,034
Total1 1,514,516 - 103,985 249,957 96,722 - - 1,965,180
  1. The total amounts outlined in the table above correspond with the disclosure at note 3B.
Prior year adjustment
An error was made in the 2023 executive remuneration disclosure due to an understatement of the leave accrual which impacted the short-term and other long-term benefits. The error did not impact the 2023 financial statements, other than Notes 3B and 3D, and is summarised below:
    2023 Short-term benefits Other long-term benefits    
Name Position title Base salary before adjustment
$
Base salary after adjustment
$
Net movement
$
Long service leave before adjustment
$
Long service leave after adjustment
$
Net movement $ Other benefits, allowances and superannuation contributions2
$
Total remuneration
$
R Pye Clerk of the Senate 416,099 419,647 3,548 9,363 36,203 26,840 61,379 517,229
J Morris Deputy Clerk of the Senate 255,725 260,456 4,731 5,789 22,105 16,316 73,715 356,276
T Bryant Clerk Assistant, Table 180,704 183,868 3,164 4,197 15,191 10,994 64,930 263,989
R Callinan Clerk Assistant, Procedure 202,921 203,577 656 4,691 9,195 4,503 58,196 270,968
J Begley Usher of the Black Rod 201,375 201,272 (103) 4,675 12,206 7,531 58,135 271,613
T Matulick Clerk Assistant, Committees 181,137 182,556 1,419 4,233 22,563 18,329 65,326 270,445
Total 1,437,961 1,451,376 13,415 32,948 117,463 84,513 381,681 1,950,520
  1. Other benefits, allowances and superannuation contributions were correct disclosured in 2023.

Note 3E: Executive remuneration disclosure – Senior executives and other highly paid staff

During the reporting period, all the department senior executives were included in the key management personnel disclosed above (2023: nil).

The department did not have any other highly paid staff that meet the reporting threshold (2023: nil).

Accounting policy

Remuneration policies, practices and governance arrangements

The Clerk of the Senate's remuneration is determined by the President of the Senate, after consultation with the Remuneration Tribunal, under section 63 of the Parliamentary Service Act 1999. In practice, the advice of the tribunal and the determinations of the Presiding Officers fix the remuneration of the heads of the four parliamentary departments at the same level. All other Senior Executive Service (SES) staff are remunerated under determinations made by the Clerk of the Senate under subsection 24(1) of the Parliamentary Service Act 1999.

For many years the department's policy has been that changes in SES terms and conditions reflect equivalent changes for non-SES employees in the department's enterprise agreements.

The department's remuneration arrangements do not provide for performance pay for any staff. Staff can also use other services offered at Parliament House, including vehicle parking.

Note 4: Funding

Note 4A: Annual appropriations (recoverable GST exclusive)
  2024
$'000
2023
$'000
Annual appropriation 26,972 23,937
Departmental capital budget (DCB)1 293 265
Adjustments to appropriation (PGPA Act – s. 74 receipts) 837 849
Total appropriation 28,102 25,051
Appropriation applied (current and prior years) 28,856 26,444
Variance (754) (1,393)
  1. The DCB is appropriated through the Appropriation (Parliamentary Departments) Act (No. 1) 2023–24. It is not separately identified in the Appropriation Act.
Note 4B: Unspent annual appropriations (recoverable GST exclusive)
2024
$'000
2023
$'000
Departmental
Appropriation (Parliamentary Departments) Act (No. 1) 2021–22 - 153
Appropriation (Parliamentary Departments) Act (No. 1) 2022–23 265 14,340
Appropriation (Parliamentary Departments) Act (No. 1) 2023–24 13,459 -
Total 13,724 14,493

Unspent appropriation amounts include the cash at bank balance as at 30 June.

Note 4C: Special appropriations managed through third party arrangements (recoverable GST exclusive)
2024
$'000
2023
$'000
Authority1
Department of Finance – Parliamentary Superannuation Act 2004,s. 18 3,009 2,856
Department of Finance – Australian Constitution,s. 66 774 749
Department of Finance – Parliamentary Business Resources Act 2017,s. 59 22,088 22,020
Total 25,871 25,625
  1. Arrangements have been entered into with the Department of Finance to allow the department to draw upon these appropriations.
Note 4D: Net cash appropriation arrangements
  2024
$'000
2023
$'000
Total comprehensive income – as per the Statement of Comprehensive Income (1,356) (2,132)
Plus: depreciation/amortisation of assets funded by appropriations (DCB)1 215 189
Plus: depreciation of right-of-use assets2 26 16
Less: lease principal repayments 17 17
Net cash operating surplus (1,132) (1,944)
  1. The DCB is appropriated through the Appropriation (Parliamentary Departments) Act (No. 1) 2023–24.
    It is not separately identified in the Appropriation Act.
  2. The inclusion of depreciation/amortisation expenses related to ROU leased assets and the lease liability principal repayment amount reflects the impact of AASB 16 Leases, which does not directly reflect a change in appropriation arrangements.

Note 5: Explanation of major budget variances

Explanation of major variance Variance to budget $'000 Variance to budget % Affected line items
The department continued to experience high levels of demand for services required to support committees, which led to higher than anticipated salary expenses. 1,040 4% Statement of comprehensive income:
  • Employee benefits
926 4% Cash Flow Statement:
  • Cash used – employees
The department's budget did not foresee the level of demand required to support committees, including increased venue hire and interstate travel costs. (2,135) -16% Statement of financial position:
  • Trade and other receivables
(3,214) -43% Statement of changes in equity:
  • Retained earnings
Appropriation applied (current and prior year) to service the expenses of the department was not anticipated at the time of the original budget. 1,731 6% Cash Flow Statement:
  • Cash received – appropriations