Operating expenses are recognised as an expense in the period to which they relate.
Operating leases
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 2023 ($000) | Actual 2024 ($000) | Unaudited budget 2024 ($000) | |
|---|---|---|---|
| Technology and telecommunications | $115,078 | $122,367 | $130,531 |
| Contractors and consultants | $45,217 | $28,464 | $39,141 |
| Accommodation leases | $28,612 | $28,141 | $28,847 |
| Office expenses | $10,047 | $9,849 | $10,548 |
| Outsourced contracts | $7,211 | $7,607 | $7,181 |
| Contingent workers | - | $5,602 | $6,689 |
| Travel and transport | $4,400 | $4,658 | $5,401 |
| Communications and publicity | $4,178 | $3,752 | $4,864 |
| Legal expenses | $3,671 | $3,343 | $4,371 |
| Net realised and unrealised foreign exchange losses | $14,394 | $1,579 | – |
| Bank fees | $996 | $1,520 | $1,247 |
| Audit fees for the audit of the financial statements | $1,384 | $1,456 | $1,456 |
| Net loss on disposal of assets | $147 | $433 | – |
| Debt expected credit losses and write-offs | $260 | $156 | – |
| Disbursements for the audit of the financial statements | $153 | $118 | $155 |
| Other operating expenses | $1,968 | $1,385 | $7,392 |
| Total operating | $237,716 | $220,430 | $247,823 |
Explanation of major variances against budget
Operating expenses were $27.393 million lower than budget. This is mainly due to a reduction in contractors and consultants, technology and travel expenditure through efficiencies in line with the Government’s Fiscal Sustainability programme.