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Note 9: Other Operating Expenses

Note 9: Other Operating Expenses
Forecast
30 June 2012 		Actual
Budget 11
$m 		Budget 12
$m 		30 June
2012
$m 		30 June
2011
$m

By type

 
-  -  Retail deposit guarantee scheme - expenses accrued for entities in default and valuation of receivables -  282
4,337 4,264 Donations and ex-gratia payments 3,682 4,220
5 6 Fees paid to audit firms (refer below) 5 7
275 226 Inventory expenses 474 467
1,780 1,146 Impairment of financial assets 1,004 1,300
-  -  Impairment of inventory 24 8
447 483 Lottery prize payments 529 521
1,115 1,120 Rental and leasing costs 1,109 1,156
806 855 Write-down on initial recognition of financial assets 850 807
29,027 28,286 Other operating expenses 28,001 27,061
37,792 36,386 Total other operating expenses 35,678 35,829

By source

 
38,693 36,565 Core Crown 35,876 37,454
16,820 16,397 Crown entities 16,321 16,368
9,004 9,802 State-owned enterprises 9,802 8,125
(26,725) (26,378) Inter-segment eliminations (26,321) (26,118)
37,792 36,386 Total other operating expenses 35,678 35,829

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.

Note 9: Other Operating Expenses (continued)
Actual
30 June
2012
$m 		30 June
2011
$m

Audit and related expenses

 
Auditor-General fees for the audit of financial statements1 35 34
Auditor-General fees for assurance and related services 1 1
Fees for other services -  1
36 36
Inter-segment eliminations (36) (36)
Total audit and related expenses -  - 

Fees for other work2

 
Fees for assurance and related services 2 4
Fees for tax services 1 1
Fees for other services 2 2
Fees paid to audit firms 5 7

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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