Annual Report 2015–2016

Departmental Financial Performance
Note 1: Expenses
2016 2015
$’000 $’000
Note 1A: Employee Benefits
Wages and salaries 15,761 16,834
Superannuation:
Defined contribution plans 1,970 2,053
Defined benefit plans 1,336 1,404
Leave and other entitlements 3,405 3,209
Separation and redundancies 592 433
Total employee benefits 23,064 23,933
PART 5 financial report
Accounting Policy
Accounting policies for employee related expenses is contained in the People and Relationships section.
Note 1B: Suppliers
Goods and services supplied or rendered
Consultants 412 709
Contractors 2,049 1,622
Committees 3,759 3,709
Services 2,380 1,766
Travel 427 402
IT Services 4,148 5,324
Stationery 34 42
Other 473 564
Total goods and services supplied or rendered 13,682 14,138
Other suppliers
Operating lease rentals in connection with
Minimum lease payments 2,535 2,689
Workers compensation premiums 241 332
Total other suppliers 2,776 3,021
Total suppliers 16,458 17,159
Leasing commitments
The NHMRC in its capacity as lessee holds a lease on its Canberra accommodation, which is a 10 year lease, with an option for a
further 5 years, signed on 1 December 2008. Lease payments increase by 3.75% each year. NHMRC no longer holds a lease on its
Melbourne accommodation which was included in comparative figures.
Commitments for minimum lease payments in relation to non-cancellable operating leases
are payable as follows:
Within 1 year 3,265 3,363
Between 1 to 5 years 5,208 9,096
Total operating lease commitments 8,473 12,459
Accounting Policy
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee
substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance
lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. NHMRC does not have any finance
leases as at 30 June 2016 (2015: nil)
Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the
leased assets.
Note 1C: Write-Down and Impairment of Assets
Asset write-downs and impairment from:
Impairment of intangible assets - 358
Total Write-Down and Impairment of Assets - 358
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Annual Report of the National Health and Medical Research Council 2015–2016