Revenue policy

Version number 1.2 | Version effective 10 June 2021

Audience

Department-wide

Purpose

To ensure the consistent and prompt identification, assessment, recording and management of revenue across the department.

Policy statement

The department recognises, manages and reports revenue in accordance with legislation, Australian Accounting Standards and Queensland Government policy. Revenue (see definition) is money or other resources that the department receives, applies and reports from:

appropriations allocated within the State Budget
fees and charges
voluntary financial contributions
grants, sponsorships, donations and bequests, and other contributions
property income
asset sales
insurance claims

Internal controls manage risk associated with revenue, including minimising the likelihood of fraud and misappropriation.

Principles

Principle	What this means for the department
Accountability	The department recognises and reports revenue promptly and accurately and in accordance with Australian Accounting Standards. The department effectively manages risks associated with revenue generation and collection through preventive and detective controls. The provisions of the Financial Accountability Handbook, in particular, Information Sheet 3.5 – Revenue Systems, helps to identify, assess, record and manage revenue due to the department.
Equity	The department’s fees and charges are calculated transparently and equitably, and in accordance with the Education (General Provisions) Act 2006 (Qld) and Queensland Government policies. The department’s debt management procedures are fair.
Performance	The department manages revenue to maximise value for money.
Sustainability	The department proactively manages its current and future financial position.

Requirements

Appropriations

The department receives controlled and administered appropriations.

Administered items are those managed by the department on behalf of Government. The department does not have decision-making authority over these items, which normally relate to activities governed by eligibility rules and conditions (for example, grants and subsidies). Administered appropriations are distributed on behalf of the Government.
The department has authority to apply controlled appropriations to achieve its objectives and in line with Government policy. The department applies controlled appropriations to deliver departmental services.

Fees and charges

Various pieces of legislation outline what fees the department can charge and for what products and services. The User charging procedure provides more information.

Voluntary financial contributions

Schools may only request (not require) parents to pay voluntary financial contributions to supplement appropriation funding for state schools. The Requests for Voluntary Financial Contributions procedure provides more information.

Grants, sponsorships, donations and bequests, and other contributions (including Commonwealth funding)

These can be either reciprocal (carrying obligations for the department) or non-reciprocal (free of obligation). Revenue is recognised:

for reciprocal items, progressively over the term of the arrangement.
for non-reciprocal items in the year the department obtains control over them – normally on receipt.

The Donations and bequests procedure provides more information.

Contributions of services are only recognised as revenue if the department would have purchased the services if they had not been donated, and their value can be measured reliably. Where this is the case, an equal amount is recognised as revenue (i.e. service received) and an expense (i.e. service consumed).

Property income

Property income, such as rent, is recognised as revenue when it is received.

Asset sales

Revenue generated from the sale of departmental assets is recognised when ownership of the asset has been transferred to the purchaser.

Insurance claims

Certain losses of public property are insured by the Queensland Government Insurance Fund (QGIF). Revenue will be recorded as “Other revenue” on the Department’s financial statements where QGIF has accepted a claim, but the amount cannot be estimated reliably.

Definitions

Term	Definition
Appropriations	Public funding provided to the department as part of the Queensland Government budget process. Administered appropriations are managed by the department on behalf of Government. The department does not have decision-making authority over these items, which normally relate to activities governed by eligibility rules and conditions (for example, grants and subsidies). The department has authority to apply controlled appropriations to achieve its objectives and in line with Government policy. The department applies controlled appropriations to deliver departmental services.
Australian Accounting Standards	Financial reporting standards applicable to entities in the private and public sectors in Australia.
Bequest	Property or money left to the department from a deceased estate.
Contribution	A transfer to the department of either assets, services, or extinguishment of liability. Contributions include: grants, subsidies, or donations.
Cost recovery	Recovery of the costs of generating a good or service.
Donation	Property or money given to the department as a charitable act.
Fees and charges	Amounts that are charged for a service.
Grant	An amount of money given for a particular purpose that is a non-reciprocal contribution.
Insurance claim	An application for compensation under the terms of an insurance policy.
Non-reciprocal contribution	Where there is no obligation to provide goods or services of the approximate equal value of the contribution directly to the contributor.
Property income	Income received for the rental of property.
Queensland Government Insurance Fund (QGIF)	A Queensland Government self-insurance fund for the management of financial risk through identifying, providing for and funding the State’s insurable liabilities.
Reciprocal contribution	Where the contributor has a right to receive benefits directly and of approximately equal to the value of the contribution.
Revenue	Revenue is income arising in the course of the department’s ordinary activities. Revenue is recognised when it is probable that the department will benefit economically and these benefits can be measured reliably.
Sponsorship	The association of the sponsor’s name, logo, products or services with the sponsored organisation’s service, product or activity. See also the department’s Sponsorship procedure.
Voluntary Financial Contributions	A request from a principal to a parent for an optional contribution to supplement government funding for the education of students at a school.

Legislation

Financial Accountability Act 2009 (Qld), Part 5, Division 2
Financial and Performance Management Standard 2019 (Qld), (s13)

Delegations/Authorisations

Refer to the Finance delegations

Other resources

Financial Accountability Handbook
Competitive Neutrality and Queensland Government Business Activities
Financial Reporting Requirements for Queensland Government Agencies
Long Term Financial Plan
Fundraising policy
Community use of school facilities procedure
Distance education enrolment fees procedure
Donations and bequests procedure
Sponsorship procedure
User charging procedure
Customer details in finance systems (DoE employees only)
End of day lodgement and checking processes (DoE employees only)
Excursions and camps (DoE employees only)
Invoicing (DoE employees only)
OneSchool Finance Accounts Receivable (DoE employees only)
Payment plans for customers (DoE employees only)
Receipting (DoE employees only)
Adjustments and credit notes (DoE employees only)
Refunds (DoE employees only)
Securing and managing physical cash (DoE employees only)

Australian Accounting Standards:

Superseded versions

Previous seven years shown. Minor version updates not included.

1.0 Revenue

Review date

17 October 2022

Keywords

recognition | income | REV_TYPE_ALL_01

Policies and procedures in this group

Revenue policy (current page)

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