Operating expenses are recognised as an expense in the period to which they relate.
A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to the ownership of an asset. Accommodation lease rentals payable under operating leases are recognised as an expense on a straight-line basis over the term of the relevant lease. Lease incentives received as an incentive to enter into an operating lease are also recognised evenly over the term of the lease as a reduction in the rental expense.
|Actual restated 2021 ($000)||Operating expense||Actual 2022 ($000)||Unaudited budget 2022 ($000)|
|$88,936||Information technology and telecommunications||$88,169||$95,945|
|$79,572||Contractors and consultants||$83,192||$99,290|
|$3,765||Communications and publicity||$2,165||$7,192|
|$1,341||Audit fees for audit of the financial statements||$1,226||$1,209|
|$1,802||Travel and transport||$1,090||$7,170|
|$13||Debt expected credit losses and write-off||$825||n/a|
|$1,784||Net realised and unrealised foreign exchange losses||$388||n/a|
|$54||Disbursements for audit of the financial statements||$251||$154|
|$45||Net loss on disposal of assets||$218||n/a|
|$1,609||Other operating expenses||$1,308||$126,118|
Operating expenses were $166.313 million lower than budget due to a reduction in transformation programme expenditure on consultants and contractors, and a reduction in travel costs due to new technology solutions that enable us to meet and work together virtually. Ongoing COVID-19-related restrictions reduced travel and legal activity. Transformation operating contingency funding, budgeted as other operating expenses, has been returned to the Crown.