Overview of our financial results
Operating result
For 2019/20, our Office had a deficit of $1.639 million. Our net operating results by output are summarised below.
| Audit and Assurance Services $000 |
Statutory Auditor Function $000 |
Remuneration of Auditor-General and Deputy $000 |
Total $000 | |
|---|---|---|---|---|
| Revenue | 81,968 | 15,155 | 1,099 | 98,157 |
| Costs | (85,353) | (13,409) | (1,099) | (99,796) |
| Surplus/(Deficit)* | (3,385) | 1,746 | - | (1,639) |
* The operating deficit excludes gain on sale of assets, which was $5,000 for the year.
The deficit of $3.385 million on Audit and Assurance Services is mainly due to the effect of the Covid-19 pandemic on the timing of our audit fee revenue. This deficit is transferred to our memorandum account, which was set up to help us manage the peaks and troughs in our audit fee revenue cycle.
The surplus of $1.746 million on the Statutory Auditor Function will be returned to the Crown, although we have subsequently sought an increase of funding of $1.008 million in 2020/21 to facilitate the completion of work delayed by the Covid-19 pandemic.
Memorandum account
The deficit for the year was higher than planned, mainly due to the effect of the Covid-19 pandemic on the timing of audit fee revenue. We expect the memorandum account to return to surplus in 2020/21.
| Audit and Assurance Services memorandum account |
$000 |
|---|---|
| Opening balance at 1 July 2019 | 1,826 |
| Audit and Assurance Services deficit | (3,385) |
| Closing balance at 30 June 2020 | (1,559) |
Investment in our assets
In 2019/20, we maintained our replacement programme for IT hardware and vehicles. We completed the upgrade of our document management system and refreshed some of the furniture in our Wellington office.
