NOTE 13: Contingent Liabilities and Assets

Contingent assets	Guarantees 2011 $’000	Guarantees 2010 $’000	Total 2011 $’000	Total 2010 $’000
Balance from previous period	5,000	10,020	5,000	10,020
Assets recognised	0	(20)	0	(20)
Expired	(5,000)	(5,000)	(5,000)	(5,000)
Total contingent assets	0	5,000	0	5,000

Contingent liabilities	Guarantees 2010 $’000	Claims for damages or costs 2011 $’000	Claims for damages or costs 2010 $’000	Total 2011 $’000	Total 2010 $’000
Balance from previous period	63	556	195	556	258
New	0	68	542	68	542
Liabilities recognised	(26)	(42)	(132)	(42)	(158)
Obligations expired	(37)	(152)	(49)	(152)	(86)
Total contingent liabilities	0	430	556	430	556
Net contingent assets (liabilities)	5,000	(430)	(556)	(430)	4,444

Quantifiable Contingent Assets

Guarantees

The Schedule of Contingencies reports a contingent asset in respect of a guarantee provided to the Department in relation to building works and lease agreements. This guarantee expired during 2010-11 (2010: $5,000,000). There were no claims made during the year.

Quantifiable Contingent Liabilities

Claims for damages and costs

The Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $430,000 (2010: $556,000). The amount represents an estimate of the Department’s liability based on precedent cases. The Department is defending the claims.

Indemnities

The Schedule of Contingencies reports no contingent assets in respect of indemnities provided to the Department (2010: $0).

Unquantifiable Contingent Assets

There were no unquantifiable contingent assets as at 30 June 2011 (2010: $0).

Unquantifiable Contingent Liabilities

The Department has provided an indemnity to an employee of the Department in respect of any claims for damages or costs arising from legal proceedings in relation to breaches of the Therapeutic Goods Act 1989. There were no claims made during the year.

The Department provides an indemnity to the lessors of all the Department’s buildings in relation to all actions, claims, demands, losses, damages, costs and expenses for which the lessor shall, may or does become liable. These can arise from the negligent use by the lessee of water, gas, electricity, lighting, overflow or leakage of water and other services and facilities. The indemnity releases the lessor from all claims and demands of any kind and from all liability which may arise in respect of any death of, or injury to, any person, and any accident or damage to property of whatever kind except to the extent that the lessor’s negligence contributed to the death, injury, loss or damage. There were no claims made during the year.

At 30 June 2011, the Department was involved in a number of litigation cases before the courts. The Department has been advised by its solicitors that it is not possible to quantify amounts relating to these cases. Therefore, in accordance with Accounting Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the information usually required by the Standard is not disclosed on the grounds that it may seriously prejudice the outcomes of these cases.

The Department has provided an indemnity to its transactional bankers in relation to any claims made against the bank resulting from errors in the Department’s payment files. There were no claims made during the year.

Significant Remote Contingencies

The Department does not have any significant remote contingencies.

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