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 2022/23 $000 |
Actual 2021/22 $000 |
|
|---|---|---|
| Audit and assurance services | ||
| Balance at 1 July | (410) | (2,282) |
| Revenue | 111,637 | 93,618 |
| Expenses | (116,909) | (98,546) |
| Surplus/(Deficit) for the year | (5,272) | (4,928) |
| Capital contribution | 7,700 | 6,800 |
| Balance at 30 June | 2,018 | (410) |
In 2022/23 we drew down capital contributions from the Crown of $9.604 million. $7.700 million was a nonrepayable capital injection approved in Budget 2022 ($5.700 million) and Budget 2023 ($2.000 million) to address the increased time and non-recoverable costs of audits arising from Covid-19.