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 the Office's operating income and expenses in the surplus/deficit, but are excluded from the calculation of the Office's repayment of surplus (see Note 13).

The memorandum account assists the Office to manage fluctuating revenue flows and assist with keeping audit fees at reasonable levels over time. The memorandum account balance will be taken into account when setting audit fees in future years.

  Actual
2017/18
$000
Actual
2016/17
$000
Audit and assurance services
Balance at 1 July 912 3,244
Revenue 84,646 76,583
Expenses (83,764) (78,915)
Surplus/(deficit) for the year 882 (2,332)
Balance at 30 June 1,794 912