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Note 9:  Other Operating Expenses

Note 9: Other Operating Expenses
Forecast Actual
Original
Budget
$m 		Estimated
Actuals
$m 		30 June 2010
$m 		30 June 2009
$m
By type  
-  6 Retail deposit guarantee scheme - expenses accrued for entities in default  (refer note 30) 43 35
-  59 Retail deposit guarantee scheme - provision for future retail deposit scheme payments (refer note 30) (68) 816
4,096 3,859 Donations and ex-gratia payments 3,486 3,477
5 5 Fees paid to audit firms (refer below) 4 4
-  -  Inventory expenses 526 486
1,252 1,594 Impairment of financial assets 1,278 2,778
248 264 Impairment of inventory 11 12
434 428 Lottery prize payments 436 504
1,166 1,086 Rental and leasing costs 1,121 1,175
578 867 Write-down on initial recognition of financial assets 855 630
27,076 23,934 Other operating expenses 23,646 24,199
34,855 32,102 Total other operating expenses 31,338 34,116
By source  
34,093 33,839 Core Crown 32,822 33,647
15,705 16,108 Crown entities 16,854 15,859
10,241 8,173 State-owned enterprises 8,206 8,914
(25,184) (26,018) Inter-segment eliminations (26,544) (24,304)
34,855 32,102 Total operating expenses 31,338 34,116

Operating expenses relate to those expenses incurred in the course of undertaking the functions and activities of entities included in the financial statements of the Government, excluding those expenses separately identified in the statement of financial performance and other notes. Items disclosed separately are those required by financial reporting standards.

Other operating expenses is the large residual item. Most of these costs represent payments made for services provided by third parties (road maintenance for example) or for raw materials (fuel, medicines or inventory for example). They also include other day-to-day operating costs.

Other operating expenses
Actual
30 June 2010
$m 		30 June 2009
$m
Audit and related expenses  
Auditor-General fees for the audit of financial statements[1] 34 34
Auditor-General fees for assurance and related services 1 1
Fees for other services -  - 
Total 35 35
Inter-segment eliminations (35) (35)
Total -  - 
Fees for other work[2]  
Fees for assurance and related services 2 2
Fees for tax services 1 1
Fees for other services 1 1
Fees paid to audit firms 4 4

Notes

  • [1]The audit of financial statements are those of the Government reporting entity and its sub-entities. Audit fees are eliminated because the Office of the Auditor-General is consolidated into these financial statements.
  • [2]External auditing firms carry out other work for entities that they audit on behalf of the Auditor-General.
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