NOTE 19: Assets Administered on Behalf of Government

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Note 19A: Cash and Cash Equivalents

Note 19B: Receivables

	2011 $’000	2010 $’000
Goods and services:
Goods and services receivable – related entities	743	0
Goods and services receivable – external parties	187,589	109,526
Total receivables for goods and services	188,332	109,526
Advances and loans:
Loans to Government Agencies	0	4,000
Aged Care Facilities	52,029	35,162
Total advances and loans	52,029	39,162
Other receivables:
Department of Veterans’ Affairs	140	0
GST receivable from the Australian Taxation Office	40,268	39,478
Total other receivables	40,408	39,478
Total receivables	280,769	188,166
Less: impairment allowance account:
Goods and services	(37,327)	(21,618)
Total impairment allowance account	(37,327)	(21,618)
Total receivables (net)	243,442	166,548
Receivables are expected to be recovered in:
Less than 12 months	195,990	127,386
More than 12 months	47,452	39,162
Total trade and other receivables (net)	243,442	166,548
Receivables were aged as follows:
Not overdue	176,763	166,511
Overdue by:
0 to 30 days	62,893	2,877
31 to 60 days	242	303
61 to 90 days	3,037	185
More than 90 days	37,834	18,290
Total receivables (gross)	280,769	188,166
The impairment allowance account is aged as follows:
Not overdue	0	(3,317)
Overdue by:
0 to 30 days	0	0
31 to 60 days	0	0
61 to 90 days	0	(13)
More than 90 days	(37,327)	(18,288)
Total impairment allowance account	(37,327)	(21,618)

Goods and services receivables are with entities external to the Australian Government. Credit terms were net 30 days (2010: 30 days).

Loans were made to approved providers under the Aged Care Act 1997 for an estimated period of 12 years. No security is generally required. Principal is repaid in full at maturity. Interest rates are linked to the Consumer Price Index. Interest payments are due on the 21^st day of each calendar month.

The Loan to Government Agencies relates to a loan to the Australian Sports Commission. This was transferred to the Department of the Prime Minister and Cabinet as part of the Administrative Arrangement Order on 15 September 2010.

Reconciliation of the Impairment Allowance Account

Movement in relation to 2011

	Goods and services receivable $’000	Total $’000
Opening balance	(21,618)	(21,618)
Amounts written off	11	11
Amounts recovered and reversed	142	142
Increase/decrease recognised in net surplus	(15,862)	(15,862)
Closing balance	(37,327)	(37,327)

Movement in relation to 2010

	Goods and services receivable $’000	Total $’000
Opening balance	(9,672)	(9,672)
Amounts written off	954	954
Amounts recovered and reversed	95	95
Increase/decrease recognised in net surplus	(12,995)	(12,995)
Closing balance	(21,618)	(21,618)

Note 19C: Other Investments

		2011 $’000	2010 $’000
Aged Care Standards and Accreditation Agency Ltd	(i)	14,422	13,874
Australian Institute of Health and Welfare	(ii)	6,276	6,067
Australian Sports Commission	(iii)	0	260,452
Food Standards Australia New Zealand	(iv)	6,046	5,564
General Practice Education and Training Ltd	(v)	39,267	33,885
National Breast and Ovarian Cancer Centre	(vi)	0	250
Private Health Insurance Administration Council	(vii)	4,763	4,777
Australian Sports Foundation Ltd	(viii)	0	6,113
Health Workforce Australia	(ix)	218,270	38,346
Total other investments		289,044	369,328
Other investments are expected to be recovered in:
More than 12 months		289,044	369,328
Total other investments		289,044	369,328

(i) The Aged Care Standards and Accreditation Agency Ltd accredits, monitors and promotes high quality care through information, education and training for Australian Government funded aged care homes. The Department classifies this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2011. Fair value has been taken to be the unaudited net assets of the entity as at 30 June 2011.

(ii) The Australian Institute of Health and Welfare informs community discussion and decision making through national leadership and collaboration in developing and providing health and welfare statistics and information. The Department classifies this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2011. Fair value has been taken to be the unaudited net assets of the entity as at 30 June 2011.

(iii) The Australian Sports Commission manages, develops and invests in sport at all levels. It works closely with a range of national sporting organisations, state and local governments, schools and community organisations to ensure sport is well run and accessible. The Department transferred this investment to the Department of the Prime Minister and Cabinet (DPMC), for no consideration, as part of the restructuring of administrative arrangements on 14 September 2010.

(iv) Food Standards Australia New Zealand protects and informs consumers through the development of effective food standards, in a way that helps stimulate and support growth and innovation in the food industry. The Department classifies this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2011. Fair value has been taken to be the unaudited net assets of the entity as at 30 June 2011.

(v) General Practice Education and Training Ltd works to ensure general practice education and training meet the needs of communities, individuals and general practitioners across Australia. The Department classifies this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2011. Fair value has been taken to be the unaudited net assets of the entity as at 30 June 2011.

(vi) At 30 June 2011, the National Breast and Ovarian Cancer Centre (NBOCC) amalgamated with Cancer Australia. The NBOCC worked in partnership with health professionals, cancer organisations, researchers, governments and those diagnosed to improve outcomes in breast and ovarian cancer. The Department classified this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2010.

(vii) The Private Health Insurance Administration Council regulates the financial performance of the private health industry, calculates the reinsurance pool, reviews pricing applications, registers health insurance organisations, and provides information relating to membership in private health insurance and the benefits paid by the industry. The Department classifies this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2011.

(viii) The Australian Sports Foundation Ltd assists sporting, community, educational and other government organisations to raise funds for the development of sports infrastructure. The Department transferred this investment to DPMC, for no consideration, as part of the restructuring of administrative arrangements on 14 September 2010.

(ix) Health Workforce Australia aims to ensure that Australia has the health workforce necessary to meet future needs through integrated clinical training, workforce planning and reform. The Department classifies this investment as ‘available for sale’ and it was measured at fair value as at 30 June 2011.

Note 19D: Land and Buildings

	2011 $’000	2010 $’000
Freehold land at fair value	1,760	1,000
Buildings on freehold land
Fair value	20,365	28,150
Accumulated depreciation	0	(1,642)
Total buildings on freehold land	22,125	27,508
Total land and buildings	22,125	27,508

Revaluation increment of $760,000 for land (2010: decrement $20,000) and decrement $3,198,000
for buildings (2010: increment $2,458,000).

An impairment of $1,538,000 was found for buildings (2010: nil).

Analysis of Property, Plant and Equipment

TABLE A – Reconciliation of the opening and closing balances of land and buildings (2010-11)

	Land	Buildings $’000	Total Land and Buildings $’000	Total $’000
As at 1 July 2010
Gross book value	1,000	28,150	29,150	29,150
Accumulated depreciation/amortisation and impairment	0	(1,642)	(1,642)	(1,642)

	Land $’000	Buildings $’000	Total Land and Buildings $’000	Total $’000
Net book value 1 July 2010	1,000	26,508	27,508	27,508
Revaluations and impairments recognised in other comprehensive income	760	(3,198)	(2,438)	(2,438)
Impairments recognised in the operating result	0	(1,538)	(1,538)	(1,538)
Depreciation/amortisation expense	0	(1,407)	(1,407)	(1,407)
Net book value 30 June 2011	1,760	20,365	22,125	22,125

	Land $’000	Buildings $’000	Total Land and Buildings $’000	Total $’000
Net book value as of 30 June 2011 represented by:
Gross book value	1,760	20,365	22,125	22,125
Accumulated depreciation/amortisation	0	0	0	0
Accumulated impairment losses	0	0	0	0
Closing net book value at 30 June 2011	1,760	20,365	22,125	22,125

TABLE B – Reconciliation of the opening and closing balances of land and buildings (2009-10)

	Land $’000	Buildings $’000	Total land and buildings $’000	Total $’000
As at 1 July 2009
Gross book value	1,000	28,150	29,150	29,150
Accumulated depreciation/amortisation and impairment	0	(235)	(235)	(235)

	Land $’000	Buildings $’000	Total land and buildings $’000	Total $’000
Net book value 1 July 2009	1,000	27,915	28,915	28,915
Depreciation/amortisation expense	0	(1,407)	(1,407)	(1,407)
Net book value 30 June 2010	1,000	26,508	27,508	27,508

	Land $’000	Buildings $’000	Total land and buildings $’000	Total $’000
Net book value as of 30 June 2010 represented by:
Gross book value	1,000	28,150	29,150	29,150
Accumulated depreciation/amortisation	0	(1,642)	(1,642)	(1,642)
Closing net book value at 30 June 2010	1,000	26,508	27,508	27,508

Note 19E: Inventories

	2011 $’000	2010 $’000
Inventories held for sale:
Finished goods	209	502
Total inventories held for sale	209	502
Inventories held for distribution	226,684	353,578
Total inventories	226,893	354,080

During 2011, $293,710 inventory held for sale was recognised as an expense (2010: $487,525).

During 2011, $154,862,365 of inventory held for distribution was recognised as an expense (2010: $84,330,476) of which $145,145,766 was impairment (2010: $5,604,578).

No items of inventory were recognised at fair value less cost to sell.

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