Queensland Art Gallery Annual Report 2006-07

QUEENSLAND ART GALLERY ANNUAL REPORT 06–07 / appendixes 76 statement using the effective interest method, and are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. No borrowing costs are capitalised. (r) Employee Benefits Wages, Salaries, Recreation Leave and Sick Leave Wages, salaries and recreation leave due but unpaid at reporting date are recognised in the Balance Sheet at the remuneration rates expected to apply at the time of settlement. Payroll tax and worker's compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses. Employer superannuation contributions and long service leave levies are regarded as employee benefits. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. For those entitlements not expected to be paid within 12 months, the liabilities are recognised at their present value, calculated using yields on Fixed Rate Commonwealth Government bonds of similar maturity. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to recur in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. Long Service Leave Under the Queensland Government's long service leave scheme a levy is made on the Gallery to cover this cost. Levies are expensed in the period in which they are paid or payable. Amounts paid to employees for long service leave are claimed from the scheme as and when leave is taken. No provision for long service leave is recognised in the financial statements, the liability being held on a whole-of-Government basis and reported in the financial report prepared pursuant to AAS 31 Financial Reporting by Governments . Superannuation Employer superannuation contributions are paid to QSuper, the superannuation plan for Queensland Government employees, at rates determined by the State Actuary. Contributions are expensed in the period in which they are paid or payable. The Gallery's obligation is limited to its contribution to QSuper. Therefore, no liability is recognised for accruing superannuation benefits in these financial statements, the liability being held on a whole-of-Gov- ernment basis and reported in the financial report prepared pursuant to AAS 31 Financial Reporting by Governments . Executive Remuneration The executive remuneration disclosures in the employee expenses note (Note 4) in the financial statements include: + the aggregate remuneration of all senior executive officers (including the Chief Executive Officer) whose remuneration for the financial year is $100 000 or more; and + the number of senior executives whose total remuneration for the financial year falls within each successive $20 000 band, commencing at $100 000. The remuneration disclosed is all remuneration received or receivable, directly or indirectly, from the Gallery or any related party in connection with the management of the affairs of the Gallery or any of its subsidiaries, whether as an executive or otherwise. For this purpose, remuneration includes: + wages and salaries; + accrued leave (that is, the increase/decrease in the amount of annual and long service leave owed to an executive, inclusive of any increase in the value of leave balances as a result of salary rate increases or the like); + performance pay received or due and receivable in relation to the financial year, provided that a liability exists (namely a determination has been made prior to the financial statements being signed), and can be reliably measured even though the payment may not have been made during the financial year; + accrued superannuation (being the value of all employer superannua- tion contributions during the financial year, both paid and payable as at 30 June); + car parking benefits and the cost of motor vehicles, such as lease payments, fuel costs, registration/insurance, and repairs/maintenance incurred by the Gallery during the financial year, both paid and payable as at 30 June, net of any amounts subsequently reimbursed by the executives; + allowances (which are included in remuneration agreements of executives, such as airfares or other travel costs paid to/for executives whose homes are situated in a location other than the location they work in); and + fringe benefits tax included in remuneration agreements. The disclosures apply to all senior executives appointed by Governor in Council and classified as SES1 and above, with remuneration above $100 000 in the financial year. 'Remuneration' means any money, consideration or benefit, but excludes amounts: + paid to an executive by an entity or its subsidiary where the person worked during the financial year wholly or mainly outside Australia during the time the person was so employed; or + in payment or reimbursement of out-of-pocket expenses incurred for the benefit of the Gallery or any of its subsidiaries. In addition, separate disclosure of separation and redundancy/termination benefit payments is included. (s) Borrowing Costs Borrowing costs are recognised as an expense in the period in which they are incurred. Borrowing costs include: + Interest on short-term borrowings; and + Administration charges (t) Insurance The Gallery's non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. In addition, the Gallery pays premiums to WorkCover Queensland in respect of its obligations for employee compensation. (u) Services Provided by the Corporate Administration Agency The Corporate Administration Agency (CAA), manager of the Cultural Centre precinct, provides a number of services to the Gallery at the Queensland Cultural Centre. These services include building maintenance and repairs, electricity, security, cleaning, airconditioning and telephone rental. The cost of these services to the Queensland Art Gallery for the 2006–07