2. Expenses including losses

Employee related expenses in the current financial year relates to the provision of personnel services by the Staff Agency to the Authority.

$1.3m (2020: $0.1m) of employee related costs have been capitalised to land and buildings and are therefore excluded from the above.

There are no employee related maintenance expenses. 

$1.3m (2020: $0.1m) of personnel services costs have been capitalised to land and buildings and are therefore excluded from the above.

¹ The audit fees for the year ending 30 June 2021 includes audit fees in relation to the FY2019-20 financial year, of $36k.

² The Fees for Services rendered, and Consultancy Costs have been incurred by the Authority to meet its commitments in delivering project goals around the Bradfield City Centre. This specifically relates to the portion of fees for services rendered that cannot be capitalised. A consultant is a person or organisation engaged under contract on a temporary basis to provide recommendations or professional advice to assist decision-making by management. Generally, it is the advisory nature of the work that differentiates a consultant from other contractors. Professional fees for services are a type of external labour commonly used by agencies for specialist advice and assistance.

³ A Contractor is any individual or organisation (other than a consultant) who is engaged to undertake work that would or could be regarded as normally undertaken by an employee, but internal expertise is not available.

Recognition and Measurement

Maintenance expense

Day-to-day servicing costs or maintenance are charged as expenses are incurred, except where they relate to the replacement or an enhancement of a part or component of an asset, in which case the costs are capitalised and depreciated.

Insurance

The Authority’s insurance activities are conducted through the NSW Treasury Managed Fund Scheme of self-insurance for Government entities. The expense (premium) is determined by the Fund Manager based on past claims experience.

Occupancy Costs

In FY2020-21, the Authority leased the office premises through Property New South Wales - refer to Note 9 Leases. The occupancy costs included in Note 2(c) represents non-rental expenses (service related) such as cleaning and management fees.

Lease expense

The Authority recognises the lease payments associated with the following types of leases as an expense on a straight-line basis:

• Leases that meet the definition of short-term. i.e. where the lease term at commencement of the lease is 12 months or less. This excludes leases with a purchase option.
• Leases of assets that are valued at $10,000 or under when new.

Variable lease payments not included in the measurement of the lease liability (i.e. variable lease payments that do not depend on an index or a rate, initially measured using the index or rate as at the commencement date). These payments are recognised in the period in which the event or condition that triggers those payments occurs.

Refer to Note 8 and 9 for recognition and measurement policies on depreciation.

Recognition and Measurement

Finance costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs are recognised as expenses in the period in which they are incurred, in accordance with NSW Treasury’s Mandate for not-for-profit NSW GGS entities.  

Recognition and Measurement

Grants and subsidies expenses consist of all expenditure related grants paid to other government agencies or local Councils. All expenses are recognised as expenses in the period in which they are incurred.