DEPARTMENT OF FISHERIES ANNUAL REPORT TO THE ...

SUMMARy OF THE yEAR � FINANCIAL OvERvIEw
employee benefit provisions ratio
Employee entitlements are what is owed to
employees for annual and long service leave. The
Department has had increasing staffing levels
since 2007 as well as increasing salary levels. The
liability for employee entitlements has increased by
27 per cent in the 2010/11 financial year mainly
due to an actuarial assessment of long service
leave, which resulted in an increase in the provision
and leave expense.
The employee benefit provisions ratio in
Figure 18 is the total employee benefit provisions
divided by equity. As a result of increasing long
service leave, this ratio has also increased by four
percentage points in 2010/11.
The Department has been working in recent
years to reduce its leave liability in accordance
with Government policy and this will continue into
the future.
Figure 18. employee benefit provisions ratio
$' 000
12,000
10,000
8,000
6,000
4,000
2,000
0
table 17.
Employee Benefit Provisions – (LHS)
Employee Benefit Provisions Ratio (%) – (RHS)
2006/07 2007/08 2008/09 2009/10 2010/11
YEAR
emPloyee BeNefIt ProvISIoNS rAtIo
2006/07
$’000
2007/08
$’000
2008/09
$’000
2009/10
$’000
2010/11
$’000
Employee Benefit Provisions – (LHS) 7,390 7,932 8,661 8,845 11,274
Employee Benefit Provisions Ratio (%) – (RHS) 16% 12% 14% 14% 18%
37
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%