Note 20: Memorandum account

Audit and assurance services
Balance at 1 July 534 -
Revenue 78,314 72,139
Expenses (76,503) (71,605)
Surplus for the year 1,811 534
Balance at 30 June 2,345 534

The memorandum account summarises the accumulated surpluses and deficits incurred in the provision of audit and assurance services by the Office on a full cost recovery basis. These transactions are included as part of the Office's operating income and expenses in the surplus/deficit, but are excluded from the calculation of the Office's repayment of surplus (see Note 12). The cumulative balance of the surplus/deficit of the memorandum account is recognised as a component of equity (see Note 14).

The balance of the memorandum account is expected to trend toward zero over a reasonable period of time. The memorandum account balance will be taken into account when setting audit fees in future years.