Note 15: Memorandum account
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 our operating income and expenses in the surplus/deficit, but are excluded from the calculation of our repayment of surplus (see Note 13).
The memorandum account helps us manage fluctuating revenue flows and keep audit fees at reasonable levels over time. The memorandum account balance will be taken into account when setting audit fees in future years.
| Actual 2021/22 $000 |
Actual 2020/21 $000 |
|
|---|---|---|
| Audit and assurance services | ||
| Balance at 1 July* | (2,282) | (2,666) |
| Revenue | 93,618 | 95,545 |
| Expenses | (98,546) | (95,161) |
| Surplus/(Deficit) for the year | (4,928) | 384 |
| Capital contribution | 6,800 | - |
| Balance at 30 June | (410) | (2,282) |
* The opening balance at 1 July 2020/21 has been restated. See Note 1 for more information.
In 2021/22 we drew down capital contributions from the Crown of $6.800 million. $5.700 million was a non-repayable capital injection approved in Budget 2022 to address the increased time and non-recoverable costs of audits arising from Covid‑19. $1.100 million was a repayable capital injection approved in Budget 2021.