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 on a straight-line basis over the term of the lease as a reduction in the rental expense.
| Actual 2022 ($000) | Operating expense | Actual 2023 ($000) | Unaudited budget 2023 ($000) |
|---|---|---|---|
| $88,169 | Information technology and telecommunications | $115,078 | $105,081 |
| $83,192 | Contractors and consultants | $45,217 | $56,486 |
| $36,888 | Accommodation leases | $28,612 | $27,824 |
| $388 |
Net realised and unrealised foreign exchange losses |
$14,394 | - |
| $12,078 | Office expenses | $10,047 | $12,193 |
| $4,102 | Outsourced contracts | $7,211 | $5,988 |
| $2,165 |
Communications and publicity |
$4,178 |
$5,597 |
| $1,090 |
Travel and transport |
$4,400 |
$3,743 |
| $2,318 | Legal expenses | $3,671 | $2,745 |
| $1,226 |
Audit fees for audit of the financial statements |
$1,384 |
$1,376 |
| $1,320 | Bank fees | $996 | $1,124 |
| $155 |
Disbursements for audit of the financial statements |
$153 |
$100 |
| $825 | Debt expected credit losses and write-offs | $260 | - |
| $218 | Net loss on disposal of assets |
$147 | - |
| $1,404 | Other operating expenses | $1,968 | $512 |
| $235,538 | Total operating | $237,716 | $222,769 |
Operating expenses were $14.947 million higher than budget. This is mainly due to realised and unrealised foreign exchange losses for forward cover foreign currency contracts, and increased information technology and telecommunication costs following transformation, offset by a reduction in contractor and consultant expenditure.