Note 5: Other operating costs
Accounting policy
Expenses of audit service providers
Fees for audits of public organisations carried out by contracted audit service providers are recognised as the work progresses, based on advice from the contracted audit service providers. Contracted audit service providers invoice and collect audit fees directly from public organisations.
Operating leases
An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term. Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term. All leases entered into by the Office are operating leases.
Other expenses
Other expenses are recognised as goods and services are received.
Breakdown of other operating costs
| Actual 2021/22 $000 |
Actual 2020/21 $000 |
|
| Fees to auditors for the audit of the Office’s financial statements: PKF Goldsmith Fox Audit | 104 | 100 |
| Operating lease payments | 3,010 | 2,748 |
| Fees for audits of public entities carried out by contracted audit service providers* | 44,234 | 40,927 |
| Other expenses | 9,204 | 8,899 |
| Total other operating costs | 56,552 | 52,674 |
* Expenditure relating to audits carried out by contracted audit service providers does not involve any cash transactions with the Office.