Royal Botanic Gardens Victoria Annual Report 2018-19

3. THE COST OF DELIVERING SERVICES
3. THE COST OF DELIVERING SERVICES
Introduction
This section provides an account of the expenses
incurred by the Board in delivering services. In
Section 2, the funds that enable the provision of
services were disclosed and in this note the costs
associated with provision of services are recorded.
Structure
3.1 Expenses incurred in delivery of services……..….….....…….88
3.2 Other operating expenses…………...……………………….…90
3.1 Expenses incurred in delivery of services
Notes
Employee benefits expense 3.1.1 17,917,622
Other operating expenses 3.2 10,509,233
Total expenses incurred in delivery of services 28,426,855
2019
$
2018
$
15,747,667
7,561,561
23,309,228
3.1.1 Employee benefits in the comprehensive operating statement
Salary and wages 13,490,052
Superannuation 1,362,599
Annual and long service leave 2,050,992
Termination benefits -
Other on-costs 1,013,979
Total employee expenses 17,917,622
2019
$
2018
$
11,975,212
1,203,792
1,478,994
-
1,089,669
15,747,667
Employee expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements,
termination payments and WorkCover premiums.
The amount recognised in the comprehensive operating statement in relation to superannuation is employer contributions for members
of both defined benefit and defined contribution superannuation plans that are paid or payable during the reporting period. The Board
does not recognise any defined benefit liabilities because it has no legal or constructive obligation to pay future benefits relating to its
employees. Instead, the Department of Treasury and Finance (DTF) discloses in its annual financial statements the net defined benefit
cost related to the members of these plans as an administered liability.
Termination benefits 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 benefits are recognised when the Board is demonstrably
committed to terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or
providing termination benefits as a result of an offer made to encourage voluntary redundancy.
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.
Current provisions
Annual Leave
Unconditional and expected to be settled within 12 months 1,000,169
Unconditional and expected to be settled after 12 months 226,350
Long service leave
Unconditional and expected to be settled within 12 months 342,094
Unconditional and expected to be settled after 12 months 1,955,578
Provision for on-costs
Unconditional and expected to be settled within 12 months 218,541
Unconditional and expected to be settled after 12 months 355,253
Total current provisions 4,097,985
2019
$
2018
$
950,318
153,744
266,499
1,933,952
198,117
339,910
3,842,540
88
Royal Botanic Gardens Board Victoria 2018-19 Financial Report Page 11