Online version of the 2012-13 Department of Health and Ageing Annual Report

Notes to and Forming Part of the Financial Statements

Page last updated: 29 October 2013

Note 1:     Summary of Significant Accounting Policies

Note 2:     Events After the Reporting Period

Note 3:     Expenses

Note 4:     Income

Note 5:     Business Operations

Note 6:     Financial Assets

Note 7:     Non-Financial Assets

Note 8:     Payables

Note 9:     Provisions

Note 10:   Cash Flow Reconciliation

Note 11:   Contingent Assets and Liabilities

Note 12:   Senior Executive Remuneration

Note 13:   Remuneration of Auditors

Note 14:   Financial Instruments

Note 15:   Financial Assets Reconciliation

Note 16:   Administered - Expenses

Note 17:   Administered - Income

Note 18:   Administered - Financial Assets

Note 19:   Administered - Non-Financial Assets

Note 20:   Administered - Payables, Provisions and Liabilities

Note 21:   Administered - Cash Flow Reconciliation

Note 22:   Administered - Contingent Assets and Liabilities

Note 23:   Administered - Financial Instruments

Note 24:   Administered - Financial Assets Reconciliation

Note 25A: Appropriations

Note 25B: Compliance with Statutory Requirements for Payments from the Consolidated Revenue Fund

Note 26:   Special Accounts

Note 27:   Compensation and Debt Relief

Note 28:   Reporting of Outcomes

Note 29:   Receipts Subject to Cost Recovery Policy

Note 30:   Net Cash Appropriation Arrangements

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Department of Health and Ageing

The Department of Health and Ageing (the Department) is an Australian Government controlled entity. It is a not-for profit entity. The objective of the Department is to lead the development of Australia’s health and ageing programs to achieve a world class health and ageing system for all Australians.

The Department is structured to meet the following 14 outcomes:

Outcome 1 Population Health A reduction in the incidence of preventable mortality and morbidity in Australia, including through regulation and national initiatives that support healthy lifestyles and disease prevention
Outcome 2 Access to Pharmaceutical Services Access to cost-effective medicines, including through the Pharmaceutical Benefits Scheme and related subsidies, and assistance for medication management through industry partnerships
Outcome 3 Access to Medical Services Access to cost-effective medical, practice nursing and allied health services, including through Medicare subsidies for clinically relevant services
Outcome 4 Aged Care and Population Ageing Access to quality and affordable aged care and carer support services for older people, including through subsidies and grants, industry assistance, training and regulation of the aged care sector
Outcome 5 Primary Care Access to comprehensive, community-based health care, including through first point of call services for prevention, diagnosis and treatment of ill-health, and for ongoing management of chronic disease
Outcome 6 Rural Health Access to health services for people living in rural, regional and remote Australia, including through health infrastructure and outreach services
Outcome 7 Hearing Services A reduction in the incidence and consequence of hearing loss, including through research and prevention activities, and access to hearing services and devices for eligible people
Outcome 8 Indigenous Health Closing the gap in life expectancy and child mortality rates for Indigenous Australians, including through primary health care, child and maternal health, and substance use services
Outcome 9 Private Health Improved choice in health services by supporting affordable quality private health care, including through private health insurance rebates and a regulatory framework
Outcome 10 Health System Capacity and Quality Improved long-term capacity, quality and safety of Australia’s health care system to meet future health needs, including through investment in health infrastructure, international engagement, consistent performance reporting and research
Outcome 11 Mental Health Improved mental health and suicide prevention, including through targeted prevention, identification, early intervention and health care services
Outcome 12 Health Workforce Capacity Improved capacity, quality and mix of the health workforce to meet the requirements of health services, including through training, registration, accreditation and distribution strategies
Outcome 13 Acute Care Improved access to public hospitals, acute care services and public dental services, including through targeted strategies, and payments to state and territory governments
Outcome 14 Biosecurity and Emergency Response Preparedness to respond to national health emergencies and risks, including through surveillance, regulation, prevention, detection and leadership in national health coordination

The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programs.

Department activities contributing toward these outcomes are classified as either Departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department, on behalf of the Government, of items controlled or incurred by the Government.

The entity conducts the following administered activities on behalf of the Government:

  • payment of subsidies for residential, aged care and community programs;
  • payment of personal benefits for Medicare services, pharmaceutical services and affordability and choice of health care initiatives; and
  • payment of grants, with the majority of these made to non-profit organisations.

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997 (FMA Act).

The financial statements and notes have been prepared in accordance with:

  • Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
  • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements and notes have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements and notes are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the Department or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, income and expenses are recognised in the Statement of Comprehensive Income when, and only when, the flow consumption or loss of economic benefits has occurred and can be reliably measured.

The Department’s combined financial statements include the financial statements of the Therapeutic Goods Administration (TGA) and two Departmental special accounts, the Office of the Gene Technology Regulator (OGTR) and the National Industrial Chemicals Notification and Assessment Scheme (NICNAS).

All transactions between these organisations have been eliminated from the combined financial statements. Where necessary, account balances of the individual reporting entities have been aligned to ensure consistency in the combined financial statements.

Comparative Figures

Comparative figures have been adjusted, where required, to conform to changes in presentation of the financial statements.

1.3 Significant Accounting Judgements and Estimates

Departmental

No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

Revised standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Department.

Future Australian Accounting Standard Requirements

No new standards, revised standards, interpretations and amending standards that were issued by the AASB prior to the sign-off date, are expected to have a financial impact on the Department for future reporting periods.

1.5 Revenue

Revenue from the sale of goods is recognised when:

  • the risks and rewards of ownership have been transferred to the buyer;
  • the Department retains no managerial involvement or effective control over the goods;
  • the revenue and transaction costs incurred can be reliably measured; and
  • it is probable that the economic benefits associated with the transaction will flow to the Department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

  • the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  • the probable economic benefits associated with the transaction will flow to the Department.

Receivables for goods and services, which have 30 day terms (note the TGA operates on 28 day terms), are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).

Revenue from Government

Amounts appropriated for Departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the Department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

1.6 Gains

Resources Received Free of Charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).

Sale of Assets

Gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Australian Government as Owner

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity. There were no restructures under administrative arrangements during 2012-13.

Other Distributions to Owners

The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

(a) Leave

The liability for employee benefits includes provisions for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Department’s employer superannuation contribution rates to the extent that leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at May 2011. An actuary is engaged every three years to reassess the leave liability. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

(b) Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Department recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

(c) Superannuation

Under the Superannuation Legislation Amendment (Choice of Funds) Act 2004, staff of the Department are able to become a member of any complying superannuation fund. A complying superannuation fund is one that meets the requirements under the Income Tax Assessment Act (1997) and the Superannuation Industry (Supervision) Act 1993.

The majority of staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other compliant superannuation funds are defined contribution schemes. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance and Deregulation’s administered schedules and notes.

The Department makes employer contributions to the employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. The Department accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the number of days between the last pay period in the financial year and 30 June.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

The Department does not hold any finance leases.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Surplus Lease Space

Future net outlays in respect of surplus space under non-cancellable lease agreements are expensed in the period in which the spaces are identified as becoming surplus.

Lease Incentives

Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced on a straight-line basis by allocating lease payments between rental expense and reduction of the lease incentive liability.

Provision for Restoration Obligation

Where the Department has a contractual obligation to undertake remedial work upon vacating leased properties, the estimated cost of that work is recognised as a liability. An equal value asset is created at the same time and amortised over the life of the lease of the underlying leasehold property.

1.10 Borrowing Costs

All borrowing costs are expensed as incurred.

1.11 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents include:

  • cash on hand;
  • demand deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;
  • cash held with outsiders; and
  • cash in special accounts.

1.12 Financial assets

The Department classifies its financial assets in the following categories:

  • available-for-sale financial assets; and
  • loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.

Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised directly in the reserves (equity) with the exception of impairment losses. Interest is calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognised directly in profit or loss. Where the asset is disposed of, or is determined to be impaired, part (or all) of the cumulative gain or loss previously recognised in the reserve is included in surplus and deficit for the period.

Where a reliable fair value cannot be established for unlisted investments in equity instruments, these instruments are valued at cost. The Department has no such instruments.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Available-for-sale financial assets - if there is objective evidence that an impairment loss on an available-for-sale financial asset has been incurred, the amount of the difference between its cost, less principal repayments and amortisation, and its current fair value, less any impairment loss previously recognised in expenses, is transferred from equity to the Statement of Comprehensive Income.

1.13 Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit and loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon trade date.

The Department does not hold any financial liabilities at ‘fair value through profit and loss’.

Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.14 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Balance Sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote.

1.15 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.16 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment by the Department, OGTR and NICNAS are recognised initially at cost in the Balance Sheet, except for information technology equipment purchases costing less than $500, leasehold improvements costing less than $50,000, and all other purchases costing less than $2,000, which are expensed in the year of acquisition (other than when they form part of a group of similar items which are significant in total).

The TGA recognises purchases of property, plant and equipment initially at cost in the Balance Sheet, except for purchases costing less than $2,000 and leasehold improvements to properties costing less than $10,000. Purchases below these thresholds are expensed in the year of acquisition (other than when they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Department where there exists an obligation to restore the property to prescribed conditions. These costs are included in the value of the Department’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

Asset class Fair value measured at:
Land Market selling price
Buildings excluding leasehold improvements Market selling price
Leasehold improvements Depreciated replacement cost
Property, plant and equipment Depreciated replacement cost

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

An independent valuation of all property, plant and equipment was carried out by the Australian Valuation Office on 30 June 2012.

Revaluation adjustments are made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Department using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease, including any applicable lease options available.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are made in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2013 2012
Buildings on freehold land 20 to 25 years 20 to 25 years
Leasehold improvements Lease term Lease term
Plant and equipment 3 to 20 years 3 to 20 years

Impairment

All assets were assessed for impairment at 30 June 2013. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Department were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

1.17 Intangibles

The Department’s intangibles comprise internally developed software for internal use and purchased software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. The Department (excluding TGA) recognises internally developed software costing more than $100,000 and purchased software costing more than $500. TGA recognises internally generated and purchased software costing more than $100,000.

Software is amortised on a straight-line basis over its anticipated useful life.

The useful lives of the Department’s software are:

2013 2012
Internally developed software 2 to 10 years 2 to 10 years
Purchased software 2 to 7 years 2 to 7 years

The useful lives of the TGA’s software are:

2013 2012
Internally developed software 3 to 10 years 3 to 10 years
Purchased software 3 to 10 years 3 to 10 years

All software assets were assessed for indications of impairment as at 30 June 2013.

1.18 Inventories

Inventories held for sale are valued at the lower of cost and net realisable value.

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

  • raw materials and stores – purchase cost on a first-in-first-out basis; and
  • finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

1.19 Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and for receivables and payables.

Note 2: Events After the Reporting Period

An amount of $2,963,268.75 relating to Appropriation Act 2 2009-10 will lapse on 1 July 2013 when the Statute Stocktake (Appropriation) Act 2013 becomes effective.

Note 3: Expenses

2013
$'000
2012
$'000
Note 3A: Employee Benefits
Wages and salaries 58,193 53,560
Superannuation:
    Defined contribution plans
3,738 3,130
    Defined benefit plans
7,536 6,906
Leave and other entitlements 10,656 13,190
Other employee benefits 272 333
Total employee benefits 80,395 77,119
Note 3B: Suppliers
Goods and services
Consultants 6,038 6,098
Contractors 3,073 3,318
Property 4,982 3,983
Travel 2,127 2,537
Information technology 4,380 4,662
Advertising and media 449 448
Committee expenses 906 929
Legal 1,222 1,637
Library and laboratory 1,183 1,220
Office records and general expenses 1,024 1,090
Staff related expenses 939 877
Other 1,317 1,180
Total goods and services 27,640 27,979
Goods and services are made up of:
Provision of goods - related entities 132 7
Provision of goods - external parties 2,535 2,623
Provision of services - related entities 3,044 2,927
Provision of services - external parties 21,929 22,422
Total goods and services 27,640 27,979
Other supplier expenses
Operating lease rentals-external parties:
    Minimum lease payments
6,341 6,105
    Contingent rentals
2,687 2,509
Workers compensation expenses 940 842
Total other supplier expenses 9,968 9,456
Total supplier expenses 37,608 37,435
Note 3C: Depreciation and Amortisation
Depreciation:
    Property, plant and equipment
1,655 1,258
    Buildings - leasehold improvements
1,079 821
Total depreciation 2,734 2,079
Amortisation:
Intangibles:
    Computer software - internally developed
1,428 1,033
    Computer software - purchased
222 115
Total amortisation 1,650 1,148
Total depreciation and amortisation 4,384 3,227
Note 3D: Write-Down and Impairment of Assets
Asset write-downs and impairments from:
    Impairment on financial instruments
592 562
    Write-down of property, plant and equipment
75 5
    Write-down of leasehold improvements
- 14
Total write-down and impairment of assets 667 581
  1.   Payments made on behalf of Portfolio agencies are recovered, refer Note 4B.

Note 4:     Income

2013
$'000
2012
$'000
OWN-SOURCE REVENUE
Note 4A: Sale of goods and rendering of services
Provision of goods - external parties 21 51
Provision of goods - related entities - 110
Rendering of services - related entities 9,508 6,440
Rendering of services - external parties 136,028 132,824
Total sale of goods and rendering of services 145,557 139,425
Note 4B: Other revenue
Recoveries received from Portfolio agencies 1 15,475 28,644
Other revenue 157 1,000
Total other revenue 15,632 29,644
  1. For payments made on behalf of Portfolio agencies refer Note 3E.
GAINS
Note 4C: Sale of assets
Land and buildings: - -
    Proceeds from sale
24 -
    Carrying value of assets sold
(24) -
Total gain from sale of assets - -
The sale of assets relates to the lease transfer to the Australian National Preventative Health Agency and the associated sale of fitout at book value.
- -
Note 4D: Other gains
Resources received free of charge 920 820
Other gains - 21
Total other gains 920 841
REVENUE FROM GOVERNMENT
Note 4E: Revenue from Government
Appropriations:
    Departmental appropriation 1
624,779 636,121
Total revenue from Government 624,779 636,121
  1. Departmental appropriations include $1,617,000 of revenue agreed by Government since Appropriation Bill (No.3) 2012-13. 

Note 5:     Business Operations

Pursuant to Regulation 5A of the Financial Management and Accountability Act 1997, the Chief Executive of the Department of Finance and Deregulation has determined the Therapeutic Goods Administration (TGA) to be a business operation within the Department. 

TGA operates via a special account and prepares a set of annual financial statements, which are audited, as required by the Finance Minister's Orders. The TGA 2012-13 financial statements are included in the Department's 2012-13 Annual Report. 

The balance of the special account represents a standing appropriation from which payments are made for the purposes of the business operation. 

Note 6:     Financial Assets

2013
$'000
2012
$'000
Note 6A: Cash and cash equivalents
Special Accounts 2,948 2,399
Cash on hand or on deposit 999 4,926
Total cash and cash equivalents 3,947 7,325
Note 6B: Trade and other receivables
Goods and services receivable:
    Goods and services - related entities
13,882 19,247
    Goods and services - external parties
10,007 12,082
Total receivables for goods and services 23,889 31,329
Appropriations receivable:
    For existing programs
114,273 100,979
    Undrawn equity injection
51,983 78,742
    Departmental capital budget
1,726 4,351
Total appropriations receivable 167,982 184,072
Other receivables:
    GST receivable from the Australian Taxation Office
3,046 2,009
    Receivable from Official Public Account for Special Accounts
72,537 67,827
Total other receivables 75,583 69,836
Total trade and other receivables (gross) 267,454 285,237
Less impairment allowance account:
    Goods and services
(1,639) (1,386)
Total impairment allowance account (1,639) (1,386)
Total trade and other receivables (net) 265,815 283,851
Receivables are expected to be recovered in:
    No more than 12 months
265,815 283,851
Total trade and other receivables (net) 265,815 283,851
Receivables are aged as follows:
Not overdue 258,234 268,720
Overdue by:
    0 to 30 days
5,839 13,230
    31 to 60 days
678 678
    61 to 90 days
337 619
    More than 90 days
2,366 1,990
Total receivables (gross) 267,454 285,237
The impairment allowance account is aged as follows:
Not overdue - -
Overdue by:
    0 to 31 days
- -
    31 to 60 days
- -
    61 to 90 days
(127) -
    More than 90 days
(1,512) (1,386)
Total impairment allowance account (1,639) (1,386)
Credit terms for goods and services were within 30 days (2012: 30 days). Appropriations receivable undrawn, are appropriations controlled by the Department but held in the Official Public Account under the Government's just-in-time drawdown arrangement.
Reconciliation of the impairment allowance account:
Movements in relation to 2013
Goods and services
$'000
Total
$'000
Opening balance (1,386) (1,386)
    Amounts written off
174 174
    Amounts recovered and reversed
383 383
    Increase recognised in net surplus
(810) (810)
Closing balance (1,639) (1,639)
Movements in relation to 2012
Goods and services
$'000
Total
$'000
Opening balance (981) (981)
    Amounts written off
153 153
    Amounts recovered and reversed
381 381
    Increase recognised in net surplus
(939) (939)
Closing balance (1,386) (1,386)
2013
$'000
2012
$'000
Note 6C: Other financial assets
Accrued revenue 373 2,355
Total other financial assets 373 2,355
Total other financial assets are expected to be recovered in:
    No more than 12 months
373 2,355
Total other financial assets 373 2,355

Note 7:     Non-Financial Assets

2013
$'000
2012
$'000
Note 7A: Land and buildings
Leasehold improvements:
    Work in progress
599 1,922
    Fair value
80,760 78,915
    Accumulated depreciation
(12,765) (429)
Total leasehold improvements 68,594 80,408
Total land and buildings 68,594 80,408
Note 7B: Property, plant and equipment
Other property, plant and equipment:
    Fair value
23,685 21,029
    Accumulated depreciation
(6,534) (42)
Total other property, plant and equipment 17,151 20,987
Total property, plant and equipment 17,151 20,987

All revaluations are conducted in accordance with the revaluation policy stated at Note 1.  The Australian Valuation Office conducts the revaluation for property, plant and equipment. In 2013, there was no change in valuation for property, plant and equipment (2012: $2,550,000 increase to the asset revaluation reserve) as shown in the Statement of Changes in Equity. 

No indicators of impairment were found for land and buildings or property, plant and equipment.

No land and buildings and property, plant or equipment are expected to be sold or disposed of within the next 12 months.

Note 7C: Reconciliation of the opening and closing balances of land and buildings and property, plant and equipment 2013
Land and buildings
$'000
Property, plant and equipment
$'000
TOTAL
As at 1 July 2012
Gross book value 80,837 21,030 101,867
Accumulated depreciation/amortisation and impairment (429) (43) (472)
Net book value 1 July 2012 80,408 20,987 101,395
Additions:
    By purchase or internally developed
982 1,133 2,115
Impairments recognised in the operating result (292) (92) (384)
Revaluations recognised in other comprehensive income - - -
Depreciation expense (12,489) (6,543) (19,032)
Reclassification 9 1,666 1,675
Disposals:
Other disposals (24) - (24)
Net book value 30 June 2013 68,594 17,151 85,745
Net book value as of 30 June 2013 represented by:
Gross book value 81,359 23,685 105,044
Accumulated depreciation/amortisation and impairment (12,765) (6,534) (19,299)
68,594 17,151 85,745
Note 7C: Reconciliation of the opening and closing balances of land and buildings and property, plant and equipment 2012
As at 1 July 2011
Gross book value 106,039 13,762 119,801
Accumulated depreciation/amortisation and impairment (22,686) (6,162) (28,848)
Net book value 1 July 2011 83,353 7,600 90,953
Additions:
    By purchase or internally developed
5,256 15,329 20,585
Impairments recognised in the operating result (12) (31) (43)
Revaluations recognised in other comprehensive income 2,697 (147) 2,550
Depreciation expense (10,886) (1,820) (12,706)
Reclassification - 56 56
Net book value 30 June 2012 80,408 20,987 101,395
Net book value as of 30 June 2012 represented by
Gross book value 80,837 21,030 101,867
Accumulated depreciation/amortisation and impairment (429) (43) (472)
80,408 20,987 101,395
2013
$'000
2012
$'000
Note 7D: Intangibles
Computer software:
    Internally developed - in progress
48,858 100,059
    Internally developed - in use
178,527 83,971
    Purchased
5,936 5,079
    Accumulated amortisation
(96,398) (67,948)
Total computer software 136,923 121,161
Total intangibles 136,923 121,161

During 2013, $391,000 of impairment was identified for intangible assets(2012: $1,000).

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 7E: Reconciliation of the opening and closing balances of intangibles 2013
Computer Software - Internally Developed
$'000
Computer Software - Purchased
$'000
TOTAL
$'000
As at 1 July 2012
Gross book value 184,031 5,078 189,109
Accumulated amortisation and impairment (63,953) (3,995) (67,948)
Net book value 1 July 2012 120,078 1,083 121,161
Additions:
    By purchase or internally developed
45,550 864 46,414
Impairments recognised in the operating result (391) - (391)
Revaluations recognised in other comprehensive income - - -
Reclassifications (1,675) - (1,675)
Amortisation expense (28,088) (500) (28,588)
Other 1 1 2
Disposals:
    Other disposals
- - -
Net book value 30 June 2013 135,475 1,448 136,923
Net book value as of 30 June 2013 represented by:
Gross book value 227,385 5,936 233,321
Accumulated amortisation and impairment (91,910) (4,488) (96,398)
Net book value 30 June 2013 135,475 1,448 136,923
Note 7E: Reconciliation of the opening and closing balances of intangibles 2012
As at 1 July 2011
Gross book value 110,734 5,355 116,089
Accumulated amortisation and impairment (60,003) (3,859) (63,862)
Net book value 1 July 2011 50,731 1,496 52,227
Additions:
    By purchase or internally developed
77,780 118 77,898
Impairments recognised in the operating result 1 (2) (1)
Reclassifications - (59) (59)
Amortisation expense (8,434) (470) (8,904)
Net book value 30 June 2012 120,078 1,083 121,161
Net book value as of 30 June 2012 represented by:
Gross book value 184,031 5,078 189,109
Accumulated amortisation and impairment (63,953) (3,995) (67,948)
Net book value 30 June 2012 120,078 1,083 121,161
2013
$'000
2012
$'000
Note 7F: Inventories
Inventories held for sale:
    Finished goods
12 9
Total inventories held for sale 12 9
Inventories held for distribution 174 153
Total inventories 186 162
During 2013, $21,789 of inventory held for sale was recognised as an expense (2012: $67,908).
During 2013, $3,497 of inventory held for distribution was recognised as an expense (2012: $96,896).
Inventory held for sale of $12,200 is recognised at fair value less cost to sell (2012: $8,600).
All inventory is expected to be sold or distributed in the next 12 months.
Note 7G: Other non-financial assets
Prepayments 6,877 8,156
Total other non-financial assets 6,877 8,156
Total other non-financial assets are expected to be recovered in:
    No more than 12 months
5,361 6,663
    More than 12 months
1,516 1,493
Total other non-financial assets 6,877 8,156

No indicators of impairment were found for other non-financial assets.

Note 8:     Payables

2013
$'000
2012
$'000
Note 8A: Supplier
Trade creditors and accruals (81,069) (85,326)
Operating lease rentals (2,491) (8,213)
Total supplier payables (83,560) (93,539)
Supplier payables expected to be settled within 12 months:
    Related entities
(31,623) (25,148)
    External parties
(51,937) (68,391)
Total supplier payables (83,560) (93,539)
Settlement is usually made within 30 days.
Note 8B: Other payables
Wages and salaries (18,296) (15,876)
Superannuation (3,410) (2,658)
Separations and redundancies (2,486) (5,866)
Other employee payables (35) (80)
Lease incentives (27,681) (30,655)
Unearned income (18,768) (21,364)
Total other payables (70,676) (76,499)
Other payables are expected to be settled in:
    No more than 12 months
(42,991) (44,005)
    More than 12 months
(27,685) (32,494)
Total other payables (70,676) (76,499)

Note 9:     Provisions

2013
$'000
2012
$'000
Note 9A: Employee provisions
Leave (141,931) (137,191)
Separations and redundancies (4,078) -
Total employee provisions (146,009) (137,191)
Employee provisions are expected to be settled in:
    No more than 12 months
(15,405) (48,635)
    More than 12 months
(130,604) (88,556)
Total employee provisions (146,009) (137,191)
Note 9B: Other provisions
Restoration obligations (4,163) (4,464)
Provision for lease increases (19,754) (15,880)
Other provisions 1 (823) (1,048)
Total other provisions (24,740) (21,392)
Other provisions are expected to be settled in:
    No more than 12 months
(3,647) (5,013)
    More than 12 months
(21,093) (16,379)
Total other provisions (24,740) (21,392)
Restoration obligations Provision for lease increases
$'000
Other provisions Total
$'000
Carrying amounts 1 July 2012 (4,464) (15,880) (1,048) (21,392)
    Additional provisions made
(36) (4,325) (823) (5,184)
    Amounts used
337 541 - 878
    Amounts reversed
- (90) 1,048 958
Closing balance 30 June 2013 (4,163) (19,754) (823) (24,740)

  1. The Department's other provisions all related to the TGA, including the provision for low value turnover scheme.

Note 10:   Cash Flow Reconciliation

2013
$'000
2012
$'000
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Report cash and cash equivalents as per:
    Cash Flow Statement
3,947 7,325
    Balance Sheet
3,947 7,325
Difference - -
Reconciliation of net cost of services to net cash from operating activities:
Net cost of services (676,852) (667,268)
Add revenue from Government 624,779 636,121
Adjustment for non-cash items
Depreciation and amortisation 47,620 21,610
Net write-down of assets 1,680 964
Resources received free of charge 920 820
Changes in assets/liabilities
Decrease/(increase) in net receivables (12,253) (27,048)
Decrease/(increase) in other financial assets 1,982 731
Decrease/(increase) in inventories (24) 164
Decrease/(increase) in other non-financial assets 1,279 (1,476)
Increase/(decrease) in employee provisions 8,818 12,364
Increase/(decrease) in supplier payables 5,093 18,837
Increase/(decrease) in other payables (5,823) 8,152
Increase/(decrease) in other provisions 3,348 4,977
Net cash from operating activities 567 8,948

Note 11:   Contingent Assets and Liabilities

Guarantees Claims for damages or costs Total
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Contingent assets
Balance from previous period 86 - - - 86 -
Assets recognised - 86 - - - 86
Expired (86) - - - (86) -
Total contingent assets - 86 - - - 86
Contingent liabilities
Balance from previous period 27,600 - 465 350 28,065 350
New - 27,600 1,940 365 1,940 27,965
Re-measurement - - 3 - 3 -
Liabilities recognised - - (90) (150) (90) (150)
Obligations expired - - (260) (100) (260) (100)
Total contingent liabilities 27,600 27,600 2,058 465 29,658 28,065
Net contingent liabilities (27,600) (27,514) (2,058) (465) (29,658) (27,979)

Quantifiable Contingent Assets

There were no quantifiable contingent assets as at 30 June 2013 (2012: $86,000).

Quantifiable Contingent Liabilities

Claims for damages and costs

The Schedule of Contingencies reports contingent liabilities in respect of claims for damages or costs of $2,058,000 (2012: $465,000).  The amount represents an estimate of the Department’s liability based on precedent cases.  The Department is defending the claims.

Guarantees

The Schedule of Contingencies reports a contingent liability in respect of claims for payments made for Expanded and Accelerated Price Disclosure of $27,600,000 (2012: $27,600,000). This represents the maximum exposure to the Commonwealth in the event that the current contractor fails to deliver.

Unquantifiable Contingent Assets

At 30 June 2013, 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.

Unquantifiable Contingent Liabilities

At 30 June 2013, 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 (2012: Nil).

Note 12:   Senior Executive Remuneration

Note 12A: Senior Executive Remuneration Expense for the Reporting Period
2013
$
2012
$
Short-term employee benefits:
    Salary
24,850,554 22,320,553
    Annual leave accrued
2,255,909 1,976,453
    Performance bonuses
1,881,591 1,773,965
    Other
4,318,418 3,778,294
Total short-term employee benefits 33,306,472 29,849,265
Post-employment benefits:
    Superannuation
5,070,673 4,138,479
Total post-employment benefits 5,070,673 4,138,479
Other long-term benefits:
    Long service leave
1,114,249 906,839
Total other long-term benefits 1,114,249 906,839
Termination benefits:
    Voluntary redundancy payments
167,636 280,818
Total employment benefits 167,636 280,818
Total senior executive remuneration expenses 39,659,030 35,175,401

Notes:

  1. Note 12A is prepared on an accrual basis (therefore the performance bonus expenses disclosed above may differ from the cash 'Bonus Paid' in Note 12B).
  2. Note 12A excludes acting arrangements and part year service where total remuneration expensed for a senior executive was less than $180,000.
Note 12B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period
Average annual reportable remuneration paid to substantive senior executives in 2013
Average annual reportable remuneration 1 Substantive senior executives No. Reportable salary 2
$
Contributed superannuation 3
$
Reportable allowances 4 $ Bonus paid 5
$
Total reportable remuneration
$
Total remuneration (including part-time arrangements):
    Less than $180,000
23 77,904 11,986 - 2,303 92,193
    $180,000 to $209,999
27 167,717 25,939 11 7,667 201,334
    $210,000 to $239,999
45 185,460 28,265 54 9,215 222,994
    $240,000 to $269,999
37 208,002 32,206 85 14,771 255,064
    $270,000 to $299,999
12 226,435 36,353 39 18,429 281,256
    $300,000 to $329,999
10 253,789 43,048 136 17,228 314,201
    $330,000 to $359,999
2 278,351 44,065 - 23,055 345,471
    $360,000 to $389,999
3 297,955 49,537 - 28,916 376,408
    $390,000 to $419,999
1 316,209 56,628 - 28,438 397,275
    $420,000 to $449,999
2 336,028 63,015 1,462 29,613 430,118
    $450,000 to $479,999
1 406,900 58,132 931 - 465,963
    $510,000 to $539,999
1 446,911 65,363 - - 512,274
    $630,000 to $659,999
1 577,726 79,574 - - 657,300
Total 165
Average annual reportable remuneration paid to substantive senior executives in 2012
Average annual reportable remuneration 1 Substantive senior executives No. Reportable salary 2
$
Contributed superannuation 3
$
Reportable allowances 4 $ Bonus paid 5
$
Total reportable remuneration
$
Total remuneration (including part-time arrangements):
    Less than $180,000
42 78,493 13,061 5 5,791 97,350
    $180,000 to $209,999
41 162,400 23,669 32 8,851 194,952
    $210,000 to $239,999
44 183,224 30,283 46 10,419 223,972
    $240,000 to $269,999
24 202,106 34,787 44 14,365 251,302
    $270,000 to $299,999
13 221,791 45,875 1,461 15,461 284,588
    $300,000 to $329,999
4 242,445 49,921 366 21,659 314,391
    $330,000 to $359,999
5 286,374 45,096 - 17,305 348,775
    $360,000 to $389,999
2 293,019 52,483 - 28,232 373,734
    $480,000 to $509,999
1 423,564 63,567 - - 487,131
    $510,000 to $539,999
1 469,911 64,470 - - 534,381
Total 177

Notes

  1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.
  2. 'Reportable salary' includes the following:
    1. gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column); and
    2. reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits).
    3. exempt foreign employment income; and
    4. salary sacrificed benefits.
  3. The 'contributed superannuation' amount is the average cost to the Department for the provision for superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.
  4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on the individuals' payment summaries.
  5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.
Note 12C: Other Highly Paid Staff
Average annual reportable remuneration paid to highly paid staff in 2013
Average annual reportable remuneration 1 Other highly paid staff Reportable salary 2 Contributed superannuation 3 Reportable allowances 4 Bonus paid 5 Total reportable remuneration
No. $ $ $ $ $
Total remuneration (including part-time arrangements):
    $180,000 to $209,999
26 154,965 28,247 17 7,145 190,374
    $210,000 to $239,999
3 185,217 28,575 239 5,965 219,996
Total 29
Average annual reportable remuneration paid to highly paid staff in 2012
Average annual reportable remuneration 1 Other highly paid staff Reportable salary 2 Contributed superannuation 3 Reportable allowances 4 Bonus paid 5 Total reportable remuneration
No. $ $ $ $ $
Total remuneration (including part-time arrangements):
    $180,000 to $209,999
22 151,758 24,768 83 8,463 185,072
    $210,000 to $239,999
2 190,730 21,739 - 4,285 216,754
Total 24

Notes

A number of staff were part of a Voluntary Redundancy Program.  This has lead to increased payments to employees on termination resulting in a higher number of highly paid staff for 2012.

  1. This table reports staff: 
  1. who were employed by the entity during the reporting period;
  2. whose reportable remuneration was $180,000 or more for the reporting period; and 
  3. were not required to be disclosed in Table B or director disclosures.

Each row is an averaged figure based on headcount for individuals in the band.

  1. 'Reportable salary' includes the following:
  1. gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
  2. reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes);
  3. exempt foreign employment income; and
  4. salary sacrificed benefits.
  1. The 'contributed superannuation' amount is the average cost to the entity for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.
  2. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
  3. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with, or leaving the entity during the financial year. 

Note 13:   Remuneration of Auditors

2013
$'000
2012
$'000
Financial statement audit services were provided free of charge to the Department by the Australian National Audit Office (ANAO).
The fair value of services provided was:
    Financial statement audit services - Department
775 710
    Financial statement audit services - TGA
145 110
Total 920 820
No other services were provided by the auditors of the financial statements.

Note 14: Financial Instruments

2013
$'000
2012
$'000
Note 14A Categories of Financial Instruments
Financial Assets
Loans and receivables:
    Cash and cash equivalents
3,947 7,325
    Goods and services receivable
22,250 29,943
Total 26,197 37,268
Carrying amount of financial assets 26,197 37,268
Financial Liabilities
At amortised cost:
    Trade creditors
(81,069) (85,326)
Total (81,069) (85,326)
Carrying amount of financial liabilities (81,069) (85,326)
Note 14B Net Income and Expense from Financial Assets
Loans and receivables:
    Impairment expense
905 920
Net expense from loans and receivables 905 920
Net expense from financial assets 905 920

There was no interest income from financial assets not at fair value through profit or loss in the year ending 2013.

Note 14C Credit risk

The Department was exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. The amount was equal to the total amount of trade receivables $23,889,000 (2012: $31,329,000).  The Department had assessed the risk of default on payment and had allocated $1,639,000 in 2013 (2012: $1,386,000) to an allowances for impairment account.  The entity managed its credit risk by establishing policies and procedures with regard to debt management and recovery techniques that were to be applied.

The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements.

2013
$'000
2012
$'000
Financial assets
    Goods and services receivable
23,889 31,329
Total 23,889 31,329

The Department holds no collateral to mitigate against risk.

Credit quality of financial instruments not past due or individually determined as impaired
Not past due nor impaired Not past due nor impaired Past due or impaired Past due or impaired
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Loans and receivables
    Goods and services receivable
14,669 14,812 9,220 16,517
Total 14,669 14,812 9,220 16,517
Ageing of financial assets that are past due but not impaired for 2013
0 to 30 days
$'000
31 to 60 days
$'000
61 to 90 days
$'000
90+ days
$'000
Total 
$'000
Loans and receivables
    Goods and services receivable
5,839 678 210 854 7,581
Total  5,839 678 210 854 7,581
Ageing of financial assets that are past due but not impaired for 2012
0 to 30 days
$'000
31 to 60 days
$'000
61 to 90 days
$'000
90+ days
$'000
Total
$'000 
Loans and receivables
    Goods and services receivable
13,230 678 619 604 15,131
Total  13,230 678 619 604 15,131

Note 14D Liquidity Risk

The Department's financial liabilities are payables.  The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting it's obligations associated with financial liabilities.

This is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The Department has no prior experience of default.

Maturities for non-derivative financial liabilities 2013
within 1 year
$'000
1 to 2 years
$'000
Total
$'000
Other liabilities
    Trade creditors
(81,069)  -  (81,069)
Total  (81,069)  -  (81,069)
Maturities for non-derivative financial liabilities 2012
within 1 year
$'000
1 to 2 years
$'000
Total
$'000
Other liabilities
    Trade creditors
(85,326) (85,326)
Total  (85,326) (85,326)

The Department has no derivative financial liabilities in both the current and prior year.

Note 14E Market Risk 

The Department's financial instruments are of a nature that does not expose the Department to certain market risks.

The Department is not exposed to 'currency risk' or 'other price risk'.

The Department has no interest bearing items on the Balance Sheet.

Note 15:   Financial Assets Reconciliation

Financial Assets Notes 2013
$'000
2012
$'000
Total financial assets as per balance sheet 270,135 293,531
Less: non-financial instruments components
    GST receivable from the Australian Taxation Office
6B 3,046 2,009
    Appropriations receivable
6B 167,982 184,072
    Receivable from Official Public Account for Special Accounts
6B 72,537 67,827
    Accrued revenue
6C 373 2,355
Total non-financial instrument components 243,938 256,263
Total financial assets as per financial instruments note 14A 26,197 37,268

Note 25A: Appropriations

Table A: Annual Appropriations ('Recoverable GST exclusive')
2013 Appropriations Appropriation applied in 2013 (current and prior years)
$'000
Variance 4
$'000
Appropriation Act FMA Act Total appropriation
$'000
Annual appropriation
$'000
Appropriations reduced 1
$'000
AFM 2
$'000
Section 30
$'000
Section 31
$'000
Section 32 3
$'000
DEPARTMENTAL
    Ordinary annual services
631,146 - - - 80,738 - 711,884 712,069 (185)
    Other services
    Equity
52,510 - - - - - 52,510 49,943 2,567
Total departmental 683,656 - - - 80,738 - 764,394 762,012 2,382
ADMINISTERED
    Ordinary annual services
    Administered items
7,281,008 (332,455) 121,700 29,318 - (35,471) 7,064,100 7,209,467 (145,367)
    Payments to CAC Act bodies
34,748 - - - - - 34,748 34,632 116
    Other services
    State, ACT, NT and Local government
15,226 (246) - - - - 14,980 17,736 (2,756)
    Administered assets and liabilities
19,793 - - - - - 19,793 16,174 3,619
Total administered 7,350,775 (332,701) 121,700 29,318 - (35,471) 7,133,621 7,278,009 (144,388)

Notes:

  1. Appropriations reduced under Appropriation Acts (Nos. 1 & 3) 2012-13: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2 & 4) 2012-13: sections 12, 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. In 2013, there was no reduction in departmental appropriations for ordinary annual services.
    As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos. 1 & 3) 2012-13 and section 12 of Appropriation Acts (Nos. 2 & 4) 2012-13, the appropriation is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister’s determination, which is disallowable by Parliament.
  2. Advance to the Finance Minister (AFM) - Appropriation Acts (Nos. 1&3) 2012-13: section 13. An AFM was provided for Outcome 13 for $107,000,000 and a further AFM for Outcomes 10 and 14 for $12,500,000 and $2,200,000 respectively.
  3. The following was transferred from Appropriation Act 1 Administered Ordinary Services: $29,951,499 for the National Health Performance Authority and $5,520,000 for the National Health Funding Body.
  4. The variance of $185,000 for departmental annual services primarily represents the timing difference of payments to suppliers or employees. The variance of $2,567,000 for departmental equity primarily represents the timing difference of payments on asset acquisition. The administered ordinary annual services items variance of $145,367,000 relates to the difference in 2011-12 and 2012-13 section 11 amounts. The administered payments to CAC Act bodies item variance relates to a reduction expected to be formally approved during 2013-14. The administered other services specific payments to States, ACT, NT and Local Governments variance of $2,756,000 is due to the value 2011-12 grant accruals paid during 2012-13. The administered other services assets and liabilities variance of $3,619,000 relates to funding for the National Medical Stockpile.
  5. The Department of Human Services spent money from the CRF on behalf of the Department of Health and Ageing under drawing rights. The money spent has been included in the table above.
2012 Appropriations Appropriation applied in 2012 (current and prior years)
$'000
Variance 3
$'000
Appropriation Act FMA Act Total appropriation
$'000
Annual appropriation
$'000
Appropriations reduced 1
$'000
AFM
$'000
Section 30
$'000
Section 31
$'000
Section 32 2
$'000
DEPARTMENTAL
    Ordinary annual services
637,601 - - - 61,190 (333) 698,458 678,499 19,959
    Other services
    Equity
24,613 - - - - - 24,613 58,440 (33,827)
Total departmental 662,214 - - - 61,190 (333) 723,071 736,939 (13,868)
ADMINISTERED
    Ordinary annual services
    Administered items
6,245,553 (593,997) - 87,769 - (32,720) 5,706,605 5,646,304 60,301
    Payments to CAC Act bodies
37,325 - - - - - 37,325 37,325 -
    Other services
    State, ACT, NT and Local government
25,793 - - - - - 25,793 27,719 (1,926)
    Administered assets and liabilities
120,462 - - - - - 120,462 117,391 3,071
Total administered 6,429,133 (593,997) - 87,769 - (32,720) 5,890,185 5,828,739 61,446

Notes:

  1. Appropriations reduced under Appropriation Acts (Nos. 1,3&5) 2011-12: sections 10, 11, 12 and 15 and under Appropriation Acts (Nos. 2,4&6) 2011-12: sections 12, 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament. In 2012, there was no reduction in departmental and non-operating departmental appropriations.
    As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos. 1,3&5) 2011-12 and section 12 of Appropriation Acts (Nos. 2,4&6) 2011-12, the appropriation is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister’s determination, which is disallowable by Parliament.
  2. In departmental, $333,134 was transferred for the Independent Hospital Pricing Authority.
    In administered the following was transferred: $12,303,000 for Australian National Preventive Health Agency, $450,000 for National Mental Health Commission and $19,967,430 for Independent Hospital Pricing Authority.
  3. The variance of $19,959,000 for departmental annual services predominately reflects variance due to timing differences associated with the payment of suppliers and receipts from debtors. The variance of $33,827,000 for departmental equity represents additional expenditure on capital projects in 2011-12 which takes into account prior period equity. The administered ordinary annual services items variance of $60,301,000 relates to the difference in 2010-11 and 2011-12 section 11 amounts. The administered other services specific payments to States, ACT, NT and Local Governments variance of $1,926,000 is due to the value 2010-11 grant accruals paid during 2011-12. The administered other services assets and liabilities variance of $3,071,000 relates predominantly to the funding for the National Medical Stockpile.
  4. The Department of Human Services spent money from the CRF on behalf of the Department of Health and Ageing under drawing rights. The money spent has been included in the table above.
Table B: Departmental and Administered Capital Budgets ('Recoverable GST exclusive')
2013 Capital Budget Appropriations Capital Budget Appropriations applied in 2013
(current and prior years)
Variance
$'000
Appropriation Act FMA Act Total Capital Budget Appropriations
$'000
Payments for non-financial assets 3
$'000
Payments for other purposes
$'000
Total payments
$'000
Annual Capital Budget
$'000
Appropriations reduced 2
$'000
Section 32
$'000
DEPARTMENTAL
    Ordinary annual services - Departmental
    Capital Budget 1
7,984 - - 7,984 8,063 2,546 10,609 (2,625)

Notes:

  1. Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No. 1, 3).  They form part of ordinary annual services and are not separately identified in Appropriation Acts.  For more information on ordinary annual services appropriations, please see Table A:  Annual appropriations.
  2. Appropriations reduced under Appropriation Acts (No. 1, 3) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
  3. Payments made on non-financial assets include purchases of assets, expenditure on assets which have been capitalised, costs incurred to make good an asset to its original condition and the capital repayment component of finance leases.
2012 Capital Budget Appropriations Capital Budget Appropriations applied in 2012
(current and prior years)
Variance
$'000
Appropriation Act FMA Act Total Capital Budget Appropriations
$'000
Payments for non-financial assets 3
$'000
Payments for other purposes
$'000
Total payments
$'000
Annual Capital Budget
$'000
Appropriations reduced 2
$'000
Section 32
$'000
DEPARTMENTAL
    Ordinary annual services - Departmental
    Capital Budget 1
9,942 - - 9,942 8,615 2,515 11,130 (1,188)

Notes:

  1. Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No. 1, 3,5).  They form part of ordinary annual services and are not separately identified in Appropriation Acts.  For more information on ordinary annual services appropriations, please see Table A:  Annual appropriations.
  2. Appropriations reduced under Appropriation Acts (No. 1,3,5) 2011-12: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
  3. Payments made on non-financial assets include purchases of assets, expenditure on assets which have been capitalised, costs incurred to make good an asset to its original condition and the capital repayment component of finance leases.
Table C: Unspent Annual Appropriations ('Recoverable GST exclusive')
Authority 2013
$'000
2012
$'000
DEPARTMENTAL
Appropriation Act (No. 2) 2005-06 - 3,209
Appropriation Act (No. 4) 2005-06 - 1,604
Appropriation Act (No. 4) 2006-07 - 11,879
Appropriation Act (No. 6) 2006-07 - 625
Appropriation Act (No. 1) 2007-08 - 12,573
Appropriation Act (No. 1) 2008-09 - 9,903
Appropriation Act (No. 4) 2008-09 - 1,217
Appropriation Act (No. 1) 2009-10 - 9,679
Appropriation Act (No. 2) 2009-10 - 1,787
Appropriation Act (No. 3) 2009-10 - 6,035
Appropriation Act (No. 4) 2009-10 - 683
Appropriation Act (No. 1) 2010-11 2,567 15,906
Appropriation Act (No. 1) 2010-11 - Departmental Capital Budget (DCB) - 3,886
Appropriation Act (No. 2) 2010-11 721 57,386
Appropriation Act (No. 4) 2010-11 - 352
Appropriation Act (No. 1) 2011-12 - 38,088
Appropriation Act (No. 1) 2011-12 - Cash at Bank 1 - 4,926
Appropriation Act (No. 1) 2011-12 - Departmental Capital Budget (DCB) - 464
Appropriation Act (No. 3) 2011-12 - 451
Appropriation Act (No. 3) 2011-12 - Departmental Capital Budget (DCB) - 1
Appropriation Act (No. 5) 2011-12 2 4,845 8,342
Appropriation Act (No. 1) 2012-13 93,286 -
Appropriation Act (No. 1) 2012-13 - Cash at Bank 1 999 -
Appropriation Act (No. 1) 2012-13 - Departmental Capital Budget (DCB) 1,726 -
Appropriation Act (No. 2) 2012-13 3 51,262 -
Appropriation Act (No. 3) 2012-13 11,959
Total 167,365 188,996
ADMINISTERED
Appropriation Act (No. 1) 2007-08 - 678
Appropriation Act (No. 2) 2008-09 - SPP - 1,404
Appropriation Act (No. 2) 2009-10 4, 5 2,963 16,968
Appropriation Act (No. 1) 2010-11 - 73
Appropriation Act (No. 3) 2010-11 - 36
Appropriation Act (No. 1) 2011-12 - 1,019,367
Appropriation Act (No. 2) 2011-12 6 6
Appropriation Act (No. 2) 2011-12 - SPP - 3,155
Appropriation Act (No. 3) 2011-12 - 5,155
Appropriation Act (No. 5) 2011-12 - 35,800
Appropriation Act (No. 6) 2011-12 13,930 13,930
Appropriation Act (No. 1) 2012-13 683,073 -
Appropriation Act (No. 2) 2012-13 17,623 -
Appropriation Act (No. 2) 2012-13 - SPP 646 -
Appropriation Act (No. 3) 2012-13 43,338 -
Total 761,579 1,096,572
  1. Cash at bank mainly relates to deposits made on 30 June that are subject to Section 31 of the Financial Management and Accountability Act 1997.
  2. This balance includes an amount of $1,072,064 which will be reduced on 5 August 2013 when the Instrument to Reduce Appropriations (No. 1 of 2013-2014) becomes effective.
  3. This balance includes an amount of $7,374,000 which will be reduced on 5 August 2013 when the Instrument to Reduce Appropriations (No. 1 of 2013-2014) becomes effective.
  4. The comparative amount included an amount of $16,400,000 relating to the release of quarantined National Medical Stockpile funding.
  5. This balance will lapse on 1 July 2013 when the Statute Stocktake (Appropriations) Act 2013 becomes effective.
Table D: Special Appropriations ('Recoverable GST exclusive')
Appropriation applied
2013 2012
Authority Type Purpose 2013
$'000
2012
$'000
Aged Care Act 1997, Administered Unlimited Amount - to provide for the Commonwealth to give financial support for the provision of aged care. 9,407,646 8,824,217
Aged Care (Bond Security) Act 2006, Administered Unlimited Amount - to provide for the Commonwealth to give financial support for the provision of aged care. - -
Health Insurance Act 1973, Administered Unlimited Amount - an Act providing for payments by way of medical benefits and payments for hospital services and for other purposes. 18,565,706 17,652,132
National Health Act 1953, Administered Unlimited Amount - an Act relating to the provision of pharmaceutical, sickness and hospital benefits and of medical and dental services. 9,825,652 10,250,985
Medical Indemnity Act 2002, Administered Unlimited Amount - to provide Commonwealth funding to assist medical practitioners in obtaining affordable and secure medical indemnity cover. 54,249 41,199
Private Health Insurance (Transitional Provisions and Consequential Amendments) Act 2007, Administered Unlimited Amount - to enable payments of Government funds to be made to people who claim the Government 30% rebate on private health insurance. 5,508,608 5,137,441
Dental Benefits Act 2008, Administered Unlimited Amount - sets up a framework for provision of dental benefits. 59,634 58,031
Private Health Insurance Act 2007, Administered Unlimited Amount - shares the cost of claims within the private health insurance industry. 403,202 377,069
Private Health Insurance Act 2007, Administered Unlimited Amount - levies private health insurance to meet general operating costs of PHIAC 6,226 5,366
Aged or Disabled Persons Care Act 1954, Administered Unlimited Amount - an Act to provide for assistance by the Commonwealth towards the provision of care for aged persons or disabled persons. - -
Aged Care (Consequential Provisions) Act 1997, Administered Unlimited Amount - an Act to enact transitional provisions, and make consequential amendments, in connection with the enactment of the Aged Care Act 1997. - -
Health and Other Services (Compensation) Care Charges Act 1995, Administered Unlimited Amount - an Act relating to the consequences of certain compensation payments. - -
Medical Indemnity Agreement (Financial Assistance - Binding Commonwealth Obligations) Act 2002, Administered Unlimited Amount - an Act about binding Commonwealth obligations to provide financial assistance under indemnity agreements relating to Australasian Medical Insurance Limited and United Medical Protection Limited. - -
Midwife Professional Indemnity (Commonwealth Contribution) Scheme Act 2010, Administered Unlimited Amount - an Act to make provision in relation to professional indemnity cover for certain midwives, and for related purposes - -
Fairer Private Health Insurance Incentives Act 2012, Administered Unlimited Amount - an Act to provide for fairer private health insurance incentives, and for related purposes - -
National Health Amendment (Continence Aids Payment Scheme) Act 2010, Administered Unlimited Amount - an Act to amend the law relating to health, and for related purposes - -
Financial Management and Accountability Act 1997 s.28(2), Administered Refund - to provide an appropriation where an Act or other law requires or permits the repayment of an amount received by the Commonwealth and apart from this section there is no specific appropriation for the repayment. 310 111
Total 43,831,233 42,346,551

Note: the Department of Human Services also drew money from the CRF on behalf of the Department against the following special appropriations:

  • Aged Care Act 1997;
  • Health Insurance Act 1973;
  • National Health Act 1953;
  • Medical Indemnity Act 2002;
  • Private Health Insurance (Transitional Provisions and Consequential Amendments) Act 2007;
  • Dental Benefits Act 2008; and
  • Private Health Insurance Act 2007.
`
Table E: Disclosure by Agent in Relation to Annual and Special Appropriations ('Recoverable GST exclusive')
Department of Families, Housing, Community Services and Indigenous Affairs
2013 $'000
Total receipts 2,359
Total payments (2,359)

The Department made wage supplementation payments from the Social and Community Services Pay Equity Special Account administered by FaHCSIA to the eligible social and community services workers.

The Department did not make any agency payments in 2012.

Table F: Reduction in Administered Items ('Recoverable GST exclusive')
2013 Amount required 3 - by Appropriation Act Total amount required 3 Total amount appropriated 4 Total reduction 5
Ordinary Annual Services Act (No. 1) Act (No. 3) Act (No. 5)
$ $ $ $ $ $
Outcome 1 344,364,015.44 0.00 0.00 344,364,015.44 366,036,000.00 21,671,984.56
Outcome 2 643,592,026.87 0.00 0.00 643,592,026.87 675,571,000.00 31,978,973.13
Outcome 3 107,594,571.44 0.00 0.00 107,594,571.44 115,171,000.00 7,576,428.56
Outcome 4 1,867,773,940.03 0.00 0.00 1,867,773,940.03 2,027,190,000.00 159,416,059.97
Outcome 5 833,526,000.00 0.00 0.00 833,526,000.00 866,574,000.00 33,048,000.00
Outcome 6 87,141,448.73 0.00 0.00 87,141,448.73 87,480,000.00 338,551.27
Outcome 7 373,300,947.49 0.00 0.00 373,300,947.49 404,257,000.00 30,956,052.51
Outcome 8 694,926,289.08 0.00 0.00 694,926,289.08 705,659,000.00 10,732,710.92
Outcome 9 2,505,409.05 0.00 0.00 2,505,409.05 5,091,000.00 2,585,590.95
Outcome 10 157,148,851.58 0.00 0.00 157,148,851.58 160,399,000.00 3,250,148.42
Outcome 11 378,847,984.99 0.00 0.00 378,847,984.99 386,596,000.00 7,748,015.01
Outcome 12 1,308,381,000.00 787,000.00 0.00 1,309,168,000.00 1,321,168,000.00 12,000,000.00
Outcome 13 201,651,501.31 9,317,362.26 0.00 210,968,863.57 221,961,501.31 10,992,637.74
Outcome 14 23,438,247.97 485,000.00 0.00 23,923,247.97 24,083,000.00 159,752.03
Total 7,024,192,233.98 10,589,362.26 0.00 7,034,781,596.24 7,367,236,501.31 332,454,905.07
Other Services Act (No. 2) Act (No. 4) Act (No. 6)
$ $ $ $ $ $
Specific payments to States, ACT, NT and Local government
Outcome 1 14,980,315.00 0.00 0.00 14,980,315.00 15,226,000.00 245,685.00
Outcome 2 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 3 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 4 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 5 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 6 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 7 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 8 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 9 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 10 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 11 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 12 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 13 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 14 0.00 0.00 0.00 0.00 0.00 0.00
Total 14,980,315.00 0.00 0.00 14,980,315.00 15,226,000.00 245,685.00

Notes:

  1. Numbers in this section of the table must be disclosed to the cent and covers administered appropriations except for payments to State, ACT, NT and Local Government. Acts (no.2) (no.4) and (no.6) are non operating appropriations.
  2. Administered items for 2013 are reduced to these amounts when these financial statements will be tabled in Parliament as part of the Department's 2013 annual report.  This reduction is effective in 2014, but the amounts are reflected in Table A in the 2013 financial statements in the column 'Appropriations reduced' as they were adjustments to 2013 appropriations.
  3. Amounts required as per Appropriation Act (Act 1 s. 11; Act 2 s.12).
  4. Total amount appropriated in 2013.
  5. Total reduction effective in 2014.
2012 Amount required 3 - by Appropriation Act Total amount required 3 Total amount appropriated 4 Total reduction 5
Ordinary Annual Services Act (No. 1) Act (No. 3) Act (No. 5)
$ $ $ $ $ $
Outcome 1 324,119,995.53 0.00 0.00 324,119,995.53 359,623,000.00 35,503,004.47
Outcome 2 617,666,863.75 0.00 0.00 617,666,863.75 657,838,000.00 40,171,136.25
Outcome 3 107,374,000.00 500,000.00 0.00 107,874,000.00 107,874,000.00 0.00
Outcome 4 546,405,875.45 0.00 0.00 546,405,875.45 800,052,000.00 253,646,124.55
Outcome 5 829,845,000.00 0.00 24,384,843.11 854,229,843.11 918,628,000.00 64,398,156.89
Outcome 6 92,437,000.00 0.00 7,621,435.38 100,058,435.38 101,637,000.00 1,578,564.62
Outcome 7 378,047,930.56 0.00 0.00 378,047,930.56 410,660,000.00 32,612,069.44
Outcome 8 684,911,038.26 0.00 0.00 684,911,038.26 722,824,000.00 37,912,961.74
Outcome 9 3,654,752.86 0.00 0.00 3,654,752.86 3,913,000.00 258,247.14
Outcome 10 530,028,617.23 0.00 0.00 530,028,617.23 554,285,000.00 24,256,382.77
Outcome 11 254,650,672.29 0.00 0.00 254,650,672.29 292,482,000.00 37,831,327.71
Outcome 12 1,103,405,450.69 0.00 0.00 1,103,405,450.69 1,120,888,000.00 17,482,549.31
Outcome 13 88,102,781.24 0.00 0.00 88,102,781.24 135,849,570.00 47,746,788.76
Outcome 14 25,679,000.00 0.00 0.00 25,679,000.00 26,279,000.00 600,000.00
Total 5,586,328,977.86 500,000.00 32,006,278.49 5,618,835,256.35 6,212,832,570.00 593,997,313.65
Other Services Act (No. 2) Act (No. 4) Act (No. 6)
$ $ $ $ $ $
Specific payments to States, ACT, NT and Local government
Outcome 1 25,793,000.00 0.00 0.00 25,793,000.00 25,793,000.00 0.00
Outcome 2 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 3 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 4 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 5 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 6 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 7 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 8 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 9 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 10 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 11 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 12 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 13 0.00 0.00 0.00 0.00 0.00 0.00
Outcome 14 0.00 0.00 0.00 0.00 0.00 0.00
Total 25,793,000.00 0.00 0.00 25,793,000.00 25,793,000.00 0.00

Notes:

  1. Numbers in this section of the table must be disclosed to the cent and covers administered appropriations except for payments to State, ACT, NT and Local Government. Acts (no.2) (no.4) and (no.6) are non operating appropriations.
  2. Administered items for 2012 were reduced to these amounts when these financial statements were tabled in Parliament as part of the Department's 2012 annual report.  This reduction was effective in 2013, but the amounts are reflected in Table A in the 2012 financial statements in the column 'Appropriations reduced' as they were adjustments to 2012 appropriations.
  3. Amounts required as per Appropriation Act (Act 1 s. 11; Act 2 s.12).
  4. Total amount appropriated in 2012.
  5. Total reduction effective in 2013.

Note 25B: Compliance with Statutory Requirements for Payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law.

The Department has primary responsibility for administering legislation related to health and aged care. Approximately 500 million payments totalling around $43.8 billion each year are authorised against Special Appropriations by the Department in accordance with a range of frequently complex legislation. Most of the payments are administered by the DHS under the Medicare program, on behalf of the Department. In the vast majority of cases DHS relies on information or estimates provided by customers and medical providers to calculate and pay entitlements. Despite future payments being adjusted to recover any overpayment, a breach of section 83 could nevertheless result. In addition, simple administrative errors can also lead to breaches of section 83.

Due to the number of payments made, the reliance that must be placed on external control frameworks and the complexities of the legislation governing these payments, the risk of a section 83 breach cannot be fully mitigated. However, the reported section 83 breaches represent only a very small portion of payments, both in number and in value, and the Department is committed to implementing measures to ensure that the risk of unintentional breaches of section 83 is as low as possible.

In 2011-12, the Department developed an approach for assessing the alignment of payment processes with legislation. This approach is reviewed annually. During 2012-13, the Department:

  • reviewed legislation (including administrative processes) enacted since 1 July 2012 that creates or modifies payment eligibility as to whether processes are in place to minimise the risk of breaches of section 83;
  • received assurance from the DHS that action has been undertaken to detect and prevent any potential breaches of section 83;
  • continued its ongoing reviews of special accounts by internal audit as part of its rolling compliance program;
  • obtained legal advice as appropriate to resolve questions of potential non-compliance; and
  • identified legislative/procedural changes to reduce the risk of non-compliance in the future.

Special Accounts

Currently the Department has nine Special Accounts and they have all been assessed as low risk for non-compliance with section 83.

No breaches of section 83 have been identified by the Department during the year in the Special Accounts.

Special Appropriations

The Department administers 16 pieces of legislation as having Special Appropriations involving statutory requirements for payments.

Health Insurance Act 1973

The Department has had cause to review parts of the Health Insurance Act 1973 (the Health Insurance Act) and instruments made under it and has identified actual breaches of section 83 of the Constitution. In 2012-13, there were 6,248 payments totalling $12,177,426.40 have breached section 83. These breaches relate to 6,209 Medicare payments being made without legal authority totalling $139,381.00 and 39 cases of non-compliance under the Chronic Disease Dental Scheme (CDDS) totalling $12,038,045.40.

These breaches have been confirmed by the Australian Government Solicitor (AGS) and the related debts have been waived on the basis that it would be inequitable to recover the debts owed by various patients and providers of medical services, as they received the payments in good faith and would have been eligible for the benefit had the intended amendments to the legislation been correctly implemented. Refer to Note 27: Compensation and Debt Relief for the amount waived.

Corrective action involving regulatory amendments and the enactment of legislative instruments has been implemented where appropriate.

In addition to the above, 46,450 overpayments resulting in potential breaches of the Health Insurance Act of $11,273,475 (or approximately 0.06% of total payments under this Act) have been recognised for recovery by the Department. These in the main reflect debt recovery action following adjustments to data made by customers or medical providers after the initial payment has been made. These potential breaches may not result in a loss to the Commonwealth as they are generally recovered or offset against future payments. Amounts recovered total $8,123,240.

In addition, the Department has identified a number of overpayments during 2012-13, under other Special Appropriation, many involving small sums. Given it is highly resource intensive to confirm whether individual overpayments have breached section 83 of the Constitution, we have listed the overpayments made under the following legislation as potential breaches:

Private Health Insurance Act 2007

These relate to payments made to health insurers prior to a registration of an application from the claimant. DHS are introducing changes to its systems and internal processes, as well as seeking legislative remedies, to prevent further potential breaches. During 2012-13:

  • potential breaches identified total $3,793,433 (0.06% of total payments under this Act); and
  • amounts recovered total $3,507,318.

National Health Act 1953

DHS has identified overpayments as part of its compliance process. Debts have been raised due to incorrect concessional status being provided by patients, duplicate claims being made by patients and assessment of Pharmaceutical Benefits Scheme items against eligibility requirements. During 2012-13:

  • potential breaches identified total $691,936 (less than 0.01% of total payments under this Act); and
  • amounts recovered total $581,305.

Aged Care Act 1997

DHS has identified overpayments occurred for a number of residential aged care facilities due to a system error. During 2012-13:

  • potential breaches identified total $1,198,082 (0.01% of total payments under this Act); and
  • amounts recovered total $1,138,315.

No potential breaches have been identified, as part of the 2012-13 review process, under the remaining Special Appropriations.

Continued Focus

The Department will continue to review legislation (including any related administrative processes) that creates or modifies payment eligibility as it is enacted to determine whether process are in place to minimise the risk of breaches of section 83. It will continue with an ongoing review program that involves reviewing legislation, New Policy Proposals, business rules and payment processes. In addition, the Department will continue ongoing reviews of special accounts by internal audit as part of its rolling compliance program.

During 2012-13 additional legal advice was received that indicated there could be breaches of section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. The Department will review its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments.

Note 25B: Compliance with Statutory Requirements for Payments from the Consolidated Revenue Fund
Expenditure in 2012-13 $000 Review complete? 1 (Yes/No) Breaches identified to date 3 Potential breaches yet to be resolved Yes/No Remedial action taken or proposed 2
Appropriations identified as subject to conditions Special Appropriations Actuals
$000
Potential
$000
Recovered
$000
Aged Care Act 1997 9,407,646 Yes - 1,198 1,138 Yes DM
Health Insurance Act 1973 18,565,706 Yes 12,177 11,273 8,123 Yes LDM
National Health Act 1953 9,825,652 Yes - 692 581 Yes DM
Private Health Insurance Act 2007 5,918,036 Yes - 3,793 3,507 Yes DM
43,717,040 12,177 16,956 13,349
  1. Reviewed legislation (including any administrative processes) enacted since 1 July 2012 that creates or modifies payment eligibility as to whether processes are in place to minimise the risk of breaches of section 83
  2. L=Legislative Change; S=Systems Change; D=Debt Recovery; M=Made; PR=Planned Review.
  3. Recoveries can relate to prior periods

Note 26:   Special Accounts

Note 26: Special Accounts ('Recoverable GST exclusive')

Services for Other Entities and Trust Moneys 1 Australian Childhood Immunisation Register Account 2 Human Pituitary Hormones Account 3 Safety and Quality in Health Care 4
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Balance brought forward from previous period 18,893 39,107 5,064 6,052 3,137 3,303 - 4,444
Increases:
    Appropriation credited to special account
27,313 8,698 3,047 4,595 - - - -
    Receipts from State Governments
12,773 14,986 3,580 3,593 - - - -
    Industry contributions
2,144 475 - - - - - -
    Transfer from Safety and Quality in Health Care
- 1,836 - - - - - -
    Other receipts
- 2,327 - - - - - 338
    Cash to the Official Public Account
- - - - - - - -
Total increases 42,230 28,322 6,627 8,188 - - - 338
Available for payments 61,123 67,429 11,691 14,240 3,137 3,303 - 4,782
Decreases:
    Departmental
    Payments made
- - - - - - - -
    Total departmental decreases
- - - - - - - -
    Administered
    Payments made
- - 9,174 9,176 150 166 - 2,947
    Transfer of balance subject to AAO changes
- - - - - - - -
    Total administered decreases
- - 9,174 9,176 150 166 - 2,947
    Special Public Money
    Payments made
34,542 48,536
    Transfer to Services for Other Entities and Trust Moneys Account
- - - - - - - 1,835
    Total special public money decreases
34,542 48,536 - - - - - 1,835
Total decreases 34,542 48,536 9,174 9,176 150 166 - 4,782
Total balance carried to the next period 26,581 18,893 2,517 5,064 2,987 3,137 - -
  1. Establishing Instrument: Therapeutic Goods Act 1989
    Appropriation: Financial Management and Accountability Act 1997; section 21
    Purpose: for the receipt of all moneys and payment of all expenditures and disbursements related to all operations of the Therapeutic Goods Administration.
  2. Establishing Instrument: Financial Management and Accountability Act 1997; section 20
    Appropriation: Financial Management and Accountability Act 1997; section 20
    Purpose: to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth; disburse amounts in connection with services performed on behalf of other government bodies that are not FMA Act agencies; to repay amounts where an Act or other law requires or permits the repayment of an amount received; to reduce the balance of the special account (and, therefore the available appropriation for the special account) without making a real or notional payment
  3. Establishing Instrument: Financial Management and Accountability Act 1997; section 20
    Appropriation: Financial Management and Accountability Act 1997; section 20
    Purpose: for expenditure relating to the operations of the Australian Childhood Immunisation Register, including payments to providers for the provision of information.
  4. Establishing Instrument: Financial Management and Accountability Act 1997; section 20
    Appropriation: Financial Management and Accountability Act 1997; section 20
    Purpose: for expenditure through grants and other payments for:
    • counselling and support services to recipients of pituitary-derived hormones and their families; and
    • medical and other care to people treated with pituitary-derived hormones should they contract Creutzfeldt-Jakob disease as a result of the treatment; and
    • one-off payments for recipients of pituitary-serviced hormones who can demonstrate that they have suffered a psychiatric illness prior to 1 January 1998 due to their having been informed that they are at a greater risk of contracting Creutzfeldt-Jakob disease; and
    • one-off payments for the children of recipients of pituitary-derived hormones who can demonstrate that they have suffered a psychiatric illness as a consequence of the death of their parent from Creutzfeldt-Jakob disease.
  5. Establishing Instrument: Financial Management and Accountability Act 1997; section 20
    Appropriation: Financial Management and Accountability Act 1997; section 20
    Purpose: to receive payments from the States, Territories and the Commonwealth and to pay out moneys for expenditure relating to the administration of the Australian Council for Safety and Quality in Health Care and national programs to improve quality and safety in health care.

    The Safety and Quality in Health Care special account was abolished on 31 December 2011.
Therapeutic Goods Administration Account 5 Office of the Gene Technology Regulator 6 National Industrial Chemicals Notification and Assessment Scheme Account 7 Health and Hospitals Fund Special Account 8 Local Hospitals Network Special Account 9
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Balance brought forward from previous period 56,509 46,154 6,606 6,238 7,129 5,923 - - - -
Increases:
    Appropriation credited to special account
3,634 7,303 7,840 8,026 380 427 - - 107,000 -
    Receipts from State Governments
- - - - - - - - - -
    Industry contributions
- - - - - - - - - -
    Transfer from Safety and Quality in Health Care
- - - - - - - - - -
    Other receipts
117,741 112,158 230 77 15,996 9,504 729,274 1,240,852 - -
    Cash to the Official Public Account
- - - - - - - - - -
Total increases 121,375 119,461 8,070 8,103 16,376 9,931 729,274 1,240,852 107,000 -
Available for payments 177,884 165,615 14,676 14,341 23,505 15,854 729,274 1,240,852 107,000 -
Decreases:
    Departmental
    Payments made
119,543 109,106 7,848 7,735 13,186 8,725 - - - -
    Total departmental decreases
119,543 109,106 7,848 7,735 13,186 8,725 - - - -
    Administered
    Payments made
- - - - - - 729,274 1,240,852 105,739 -
    Transfer of balance subject to AAO changes
- - - - - - - - - -
    Total administered decreases
- - - - - - 729,274 1,240,852 105,739 -
Total decreases 119,543 109,106 7,848 7,735 13,186 8,725 729,274 1,240,852 105,739 -
Total balance carried to the next period 58,341 56,509 6,828 6,606 10,319 7,129 - - 1,261 -
  1. Establishing Instrument: Therapeutic Goods Act 1989
    Appropriation: Financial Management and Accountability Act 1997; section 21
    Purpose: for the receipt of all moneys and payment of all expenditures and disbursements related to all operations of the Therapeutic Goods Administration.
  2. Establishing Instrument: Gene Technology Act 2000
    Appropriation: Financial Management and Accountability Act 1997; section 21
    Purpose: for the receipt of all moneys and payment of all expenditures and disbursements related to all operations of the Gene Technology Regulator.
  3. Establishing Instrument: Industrial Chemicals (Notification and Assessment) Act 1989
    Appropriation: Financial Management and Accountability Act 1997; section 21
    Purpose: for the receipt of all moneys and payment of all expenditures and disbursements related to all operations of the National Industrial Chemicals Notification and Assessment Scheme.
  4. Establishing Instrument: Nation Building Funds Act 2008
    Appropriation: Financial Management and Accountability Act 1997; section 21
    Purpose: the main purpose of the Health and Hospitals Fund Special Account is to make payments in relation to the creation or development of health and infrastructure.
  5. Establishing Instrument: Financial Management and Accountability Act 1997; section 20
    Appropriation: Financial Management and Accountability Act 1997; section 20
    Purpose: to make grants of financial assistance to Local Hospital Networks, in accordance with agreements entered into between them and the Commonwealth, for the provision of hospital and pharmaceutical benefits, and medical and dental services.

    The Local Hospitals Network Special Account was established on 13 March 2013.

Note 27:   Compensation and Debt Relief

2013 2012
$ $
Compensation and Debt Relief - Departmental
One 'Act of Grace payment' was made during the reporting period (2012: one payment). 4,720 14,081
None of the above payments were made on a periodic basis (2012: Nil).
No waivers of amounts owing to the Commonwealth were made pursuant to Section 34(1) of the Financial Management and Accountability Act 1997 (2012: Nil). - -
No payments were made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: Nil). - -
No ex-gratia payments were made during the reporting period (2012: Nil). - -
No payments were made in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 during the reporting period (2012: Nil). - -
Compensation and Debt Relief - Administered
Four ‘Act of Grace payments’ were made during the reporting period (2012: four payments). 25,792 5,380
None of the above payments were made on a periodic basis (2012: one payment amounting to $3,000).
Forty three waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: 7,823,187 waivers). 12,186,426 189,423,167
No payments were made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: Nil). - -
No ex-gratia payments were made during the reporting period (2012: Nil). - -

Note 28:   Reporting of Outcomes

The Department allocates shared items to outcomes in proportion to the employee costs directly assigned to outcomes in the 2012-13 financial year.

Note 28A: Net Cost of Outcome Delivery
Outcome 1 Outcome 2 Outcome 3 Outcome 4
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Departmental
    Expenses
(212,331) (209,109) (52,712) (55,357) (34,589) (42,469) (229,280) (205,804)
    Own-source income
133,744 127,552 575 636 258 696 1,695 1,321
Administered
    Expenses
(448,561) (397,706) (9,576,902) (9,938,089) (18,725,938) (17,991,078) (11,272,409) (9,387,773)
    Own-source income
6,611 9,844 334,055 205,450 38,716 68,471 261,630 264,728
Net cost of outcome delivery (520,536) (469,419) (9,294,984) (9,787,360) (18,721,553) (17,964,380) (11,238,364) (9,327,528)
Outcome 5 Outcome 6 Outcome 7 Outcome 8
Departmental
    Expenses
(32,037) (36,249) (12,386) (13,870) (12,804) (12,728) (47,546) (60,192)
    Own-source income
431 709 99 98 95 81 379 415
Administered
    Expenses
(851,549) (835,623) (86,946) (100,350) (372,652) (377,490) (693,057) (682,090)
    Own-source income
37,283 2,068 624 247 543 498 22,126 13,423
Net cost of outcome delivery (845,872) (869,095) (98,609) (113,875) (384,818) (389,639) (718,098) (728,444)
Outcome 9 Outcome 10 Outcome 11 Outcome 12
Departmental
    Expenses
(11,922) (10,201) (39,659) (27,573) (19,648) (19,451) (24,611) (28,374)
    Own-source income
4,472 4,395 829 690 157 137 196 199
Administered
    Expenses
(5,596,354) (5,859,258) (907,142) (1,783,927) (377,380) (255,183) (1,322,122) (1,103,423)
    Own-source income
411,685 386,493 729,096 1,248,308 (706) 418 6,697 4,097
Net cost of outcome delivery (5,192,118) (5,478,571) (216,878) (562,502) (396,165) (274,079) (1,339,840) (1,127,501)
Outcome 13 Outcome 14 Payments to CAC Act Bodies / Not attributed 1 Total
Departmental
    Expenses
(69,041) (60,262) (24,920) (26,895) (15,475) (28,644) (838,961) (837,178)
    Own-source income
628 1,033 3,076 3,304 15,475 28,644 162,109 169,910
Administered
    Expenses
(884,908) (901,510) (59,445) (75,373) (34,632) (37,325) (51,209,994) (49,726,198)
    Own-source income
84,612 13,650 8,700 599 - - 1,943,085 2,218,294
Net cost of outcome delivery (868,709) (947,089) (72,589) (98,365) (34,632) (37,325) 49,943,761 (48,175,172)

Outcomes 1 to 14 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.  Refer to Outcome Resourcing Tables in the performance reporting section of this Annual Report.

  1. Administered payments to CAC Act bodies are not related to outcomes. They are included here for completeness and agreement to resourcing tables. Also included are minor amounts that cannot be attributed to outcomes.  Departmental payments made on behalf of portfolio agencies and recoveries from portfolio agencies are not allocated to outcomes.
Note 28B. Major Classes of Departmental Expenses, Income, Assets and Liabilities by Outcome
Outcome 1 Outcome 2 Outcome 3 Outcome 4
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Expenses
    Employees
(147,805) (145,468) (31,454) (33,553) (25,830) (31,605) (169,643) (147,891)
    Suppliers
(56,796) (57,850) (19,017) (20,566) (7,671) (10,041) (45,763) (50,016)
    Depreciation and amortisation
(6,855) (4,841) (2,205) (1,202) (1,065) (803) (13,685) (7,806)
    Other
(875) (950) (36) (36) (23) (20) (189) (91)
Total (212,331) (209,109) (52,712) (55,357) (34,589) (42,469) (229,280) (205,804)
Income
    Revenue from Government
75,721 82,507 49,314 52,327 32,760 39,849 210,566 191,428
    Sales of goods and services
133,355 126,365 525 579 216 649 1,424 1,098
    Other non-taxation revenues
157 993 - 7 - - - -
    Gains
232 194 50 50 42 47 271 223
Total 209,465 210,059 49,889 52,963 33,018 40,545 212,261 192,749
Assets
    Cash and cash equivalents
2,948 2,399 - - - - - -
    Trade and other receivables
81,442 75,711 1,199 1,791 984 1,687 6,468 7,895
    Other financial assets
373 2,355 - - - - - -
    Land and buildings
12,121 14,427 4,130 5,129 3,391 4,831 22,273 22,606
    Infrastructure, plant and equipment
6,410 8,157 449 1,002 364 934 2,365 4,381
    Intangibles
9,042 8,150 11,112 10,974 2,127 2,611 47,024 33,127
    Inventories
174 150 - 9 - 3 - -
    Other non-financial assets
1,662 1,714 381 501 313 472 2,056 2,207
Total 114,172 113,063 17,271 19,406 7,179 10,538 80,186 70,216
Liabilities
    Suppliers
(14,490) (13,332) (5,051) (6,234) (4,148) (5,872) (27,241) (27,483)
    Other payables
(27,477) (28,607) (3,159) (3,723) (2,594) (3,507) (17,037) (16,406)
    Employee provisions
(40,107) (39,241) (7,532) (6,925) (6,643) (7,776) (41,424) (32,675)
    Other provisions
(3,923) (3,758) (1,522) (1,371) (1,250) (1,291) (8,211) (6,042)
Total (85,997) (84,938) (17,264) (18,253) (14,635) (18,446) (93,913) (82,606)
Outcome 5 Outcome 6 Outcome 7 Outcome 8
Expenses
    Employees
(25,547) (29,194) (9,875) (11,174) (9,537) (9,339) (37,843) (47,623)
    Suppliers
(5,411) (6,305) (2,094) (2,409) (2,866) (3,150) (8,109) (11,348)
    Depreciation and amortisation
(1,054) (730) (407) (279) (393) (233) (1,559) (1,188)
    Other
(25) (20) (10) (8) (8) (6) (35) (33)
Total (32,037) (36,249) (12,386) (13,870) (12,804) (12,728) (47,546) (60,192)
Income
    Revenue from Government
30,051 33,773 11,686 13,096 12,129 12,082 44,867 56,897
    Sales of goods and services
390 665 83 81 80 67 318 344
    Other non-taxation revenues
- - - - - - - -
    Gains
41 44 16 17 15 14 61 71
Total 30,482 34,482 11,785 13,194 12,224 12,163 45,246 57,312
Assets
    Cash and cash equivalents
- - - - - - - -
    Trade and other receivables
973 1,558 376 596 363 498 1,442 2,542
    Other financial assets
- - - - - - - -
    Land and buildings
3,354 4,462 1,297 1,708 1,252 1,427 4,969 7,279
    Infrastructure, plant and equipment
361 872 143 337 152 288 533 1,418
    Intangibles
4,403 1,730 790 1,180 10,212 3,225 3,029 2,823
    Inventories
- - - - - - - -
    Other non-financial assets
310 436 120 167 116 139 459 711
Total 9,401 9,058 2,726 3,988 12,095 5,577 10,432 14,773
Liabilities
    Suppliers
(4,102) (5,424) (1,586) (2,076) (1,532) (1,735) (6,077) (8,848)
    Other payables
(2,566) (3,239) (992) (1,240) (958) (1,036) (3,801) (5,284)
    Employee provisions
(7,181) (8,373) (1,524) (1,373) (2,086) (1,770) (9,026) (12,845)
    Other provisions
(1,236) (1,193) (478) (456) (462) (381) (1,831) (1,945)
Total (15,085) (18,229) (4,580) (5,145) (5,038) (4,922) (20,735) (28,922)
Outcome 9 Outcome 10 Outcome 11 Outcome 12
Expenses
    Employees
(8,226) (7,326) (29,765) (20,672) (15,727) (15,644) (19,586) (22,793)
    Suppliers
(2,944) (2,687) (8,641) (6,372) (3,259) (3,374) (4,183) (4,971)
    Depreciation and amortisation
(339) (183) (1,226) (516) (648) (423) (825) (596)
    Other
(413) (5) (27) (13) (14) (10) (17) (14)
Total (11,922) (10,201) (39,659) (27,573) (19,648) (19,451) (24,611) (28,374)
Income
    Revenue from Government
6,950 5,362 37,019 25,634 18,534 18,334 23,207 26,770
    Sales of goods and services
4,459 4,384 781 659 132 114 165 165
    Other non-taxation revenues
- - - - - - - -
    Gains
13 11 48 31 25 23 31 34
Total 11,422 9,757 37,848 26,324 18,691 18,471 23,403 26,969
Assets
    Cash and cash equivalents
- - - - - - - -
    Trade and other receivables
313 391 1,134 1,103 599 835 746 1,217
    Other financial assets
- - - - - - - -
    Land and buildings
1,080 1,120 3,908 3,160 2,065 2,391 2,572 3,484
    Infrastructure, plant and equipment
114 224 412 612 218 463 273 676
    Intangibles
1,736 943 2,383 1,225 1,259 927 1,568 1,369
    Inventories
- - - - - - - -
    Other non-financial assets
100 109 361 309 191 233 237 340
Total 3,343 2,787 8,198 6,409 4,332 4,849 5,396 7,086
    Liabilities
    Suppliers
(1,321) (1,361) (4,780) (3,841) (2,526) (2,907) (3,145) (4,235)
    Other payables
(826) (813) (2,990) (2,294) (1,580) (1,736) (1,967) (2,529)
    Employee provisions
(2,030) (682) (4,990) (3,956) (4,915) (4,156) (5,306) (5,152)
    Other provisions
(398) (299) (1,441) (845) (761) (639) (948) (931)
Total (4,575) (3,155) (14,201) (10,936) (9,782) (9,438) (11,366) (12,847)
Outcome 13 Outcome 14 Not Attributed Total
Expenses
    Employees
(28,248) (40,173) (18,837) (18,651) - - (577,923) (581,106)
    Suppliers
(24,807) (19,104) (4,665) (6,381) - - (196,226) (204,574)
    Depreciation and amortisation
(15,960) (962) (1,399) (1,848) - - (47,620) (21,610)
    Other
(26) (23) (19) (15) (15,475) (28,644) (17,192) (29,888)
Total (69,041) (60,262) (24,920) (26,895) (15,475) (28,644) (838,961) (837,178)
Income
    Revenue from Government
51,900 56,981 20,075 21,081 - - 624,779 636,121
    Sales of goods and services
583 979 3,046 3,276 - - 145,557 139,425
    Other non-taxation revenues
- - - - 15,475 28,644 15,632 29,644
    Gains
45 54 30 28 - - 920 841
Total 52,528 58,014 23,151 24,385 15,475 28,644 786,888 806,031
Assets
    Cash and cash equivalents
- - - - 999 4,926 3,947 7,325
    Trade and other receivables
1,076 1,932 718 995 167,982 185,100 265,815 283,851
    Other financial assets
- - - - - - 373 2,355
    Land and buildings
3,709 5,533 2,473 2,851 - - 68,594 80,408
    Infrastructure, plant and equipment
5,097 1,072 260 551 - - 17,151 20,987
    Intangibles
40,730 51,654 1,508 1,223 - - 136,923 121,161
    Inventories
- - 12 - - - 186 162
    Other non-financial assets
343 540 228 278 - - 6,877 8,156
Total 50,955 60,731 5,199 5,898 168,981 190,026 499,866 524,405
Liabilities
    Suppliers
(4,536) (6,726) (3,025) (3,465) - - (83,560) (93,539)
    Other payables
(2,837) (4,016) (1,892) (2,069) - - (70,676) (76,499)
    Employee provisions
(8,070) (7,728) (5,174) (4,539) - - (146,009) (137,191)
    Other provisions
(1,367) (1,479) (912) (762) - - (24,740) (21,392)
Total (16,810) (19,949) (11,003) (10,835) - - (324,985) (328,621)
Note 28C: Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcome
Outcome 1 Outcome 2 Outcome 3 Outcome 4
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
2012
$'000
2013
$'000
Expenses
    Suppliers
(174,712) (112,072) (17,573) (12,414) (15,002) (4,579) (113,128) (22,607)
    Subsidies
(11,165) (15,227) - - - (158) (9,393,673) (8,868,624)
    Personal benefits
(1) - (9,071,868) (9,448,408) (18,698,416) (17,907,394) (71,970) (8,525)
    Grants
(252,331) (258,345) (487,432) (477,259) (12,519) (78,934) (1,693,040) (486,086)
    Other
(10,352) (12,062) (29) (8) (1) (13) (598) (1,931)
Total (448,561) (397,706) (9,576,902) (9,938,089) (18,725,938) (17,991,078) (11,272,409) (9,387,773)
Income
    Taxation revenue
- - - - - - - -
    Goods and services
- - - - - - - -
    Other
6,611 9,844 334,055 205,450 38,716 68,471 261,630 264,728
Total 6,611 9,844 334,055 205,450 38,716 68,471 261,630 264,728
Assets
    Cash and cash equivalents
- - - - - - - -
    Personal benefits receivable
- - 100,658 114,622 22,482 32,117 - -
    Trade and other receivables
2,710 2,250 53,806 21,806 258 2,875 263,825 106,457
    Other investments
11,405 12,216 - - - - 14,845 15,484
    Land and buildings
- - - - - - - -
    Intangibles
- - - - - - - -
    Inventories
1,285 1,247 2 2 16 - 623 782
Total 15,400 15,713 154,466 136,430 22,756 34,992 279,293 122,723
Liabilities
    Overdraft
- - - - - - - -
    Suppliers payable
(9,328) (545) (535) (313) (346) (298) (19,316) (7,318)
    Subsidies payable
- - - - - - (36,421) (47,835)
    Personal benefits payable
- (476) (39,415) (78,437) (316,515) (325,889) (696) (2,076)
    Grants payable
(24,137) (64,187) (40,895) (56,976) (8,928) (8,986) (33,400) (38,997)
    Other payables
- - - - - - (42,396) (26,791)
    Subsidies provision
- - - - - - - -
    Personal benefits provision
- - (265,903) (261,244) (798,631) (824,667) - -
Total (33,465) (65,208) (346,748) (396,970) (1,124,420) (1,159,840) (132,229) (123,017)
Outcome 5 Outcome 6 Outcome 7 Outcome 8
Expenses
    Suppliers
(13,490) (12,996) (20) (168) (52) - (43,119) (36,475)
    Subsidies
- - - - - - - -
    Personal benefits
(298,275) (304,463) - - (372,513) (375,232) (18,325) (21,710)
    Grants
(539,784) (517,994) (86,926) (100,182) (69) (2,256) (628,354) (622,773)
    Other
- (170) - - (18) (2) (3,259) (1,132)
Total (851,549) (835,623) (86,946) (100,350) (372,652) (377,490) (693,057) (682,090)
Income
    Taxation revenue
- - - - - - - -
    Goods and services
- - - - - - - -
    Other
37,283 2,068 624 247 543 498 22,126 13,423
Total 37,283 2,068 624 247 543 498 22,126 13,423
Assets
    Cash and cash equivalents
- - - - - - - -
    Personal benefits receivable
86 82 - - - - - -
    Trade and other receivables
36,647 568 69 87 777 630 2,314 6,256
    Other investments
18,253 42,109 - - - - - -
    Land and buildings
- - - - - - - -
    Intangibles
- - - - - - - -
    Inventories
- - - - - - - 1
Total 54,985 42,759 69 87 777 630 2,314 6,257
Liabilities
    Overdraft
- - - - - - - -
    Suppliers payable
(168) (338) (8) - - - (190) (898)
    Subsidies payable
- - - - - - - -
    Personal benefits payable
(47,732) (32,219) - - (10,933) (13,859) (5) -
    Grants payable
(32,113) (58,125) (8,122) (12,010) (1,799) (2,134) (24,771) (50,665)
    Other payables
- - - - - - - -
    Subsidies provision
- - - - - - - -
    Personal benefits provision
- - - - - - - -
Total (80,013) (90,682) (8,130) (12,010) (12,732) (15,993) (24,966) (51,563)
Outcome 9 Outcome 10 Outcome 11 Outcome 12 Outcome 13
Expenses
    Suppliers
(811) (1,914) (65,795) (217,258) (17,254) (8,604) (11,392) (12,507) (11,303) (10,581)
    Subsidies
- - - - (500) - (35,286) - - (172,426)
    Personal Benefits
(5,184,345) (5,473,209) - (28,790) (3) - - - (6,821) (4,843)
    Grants
(1,700) (1,700) (822,688) (1,532,328) (359,623) (246,579) (1,275,302) (1,090,906) (861,776) (710,557)
    Other
(409,498) (382,435) (18,659) (5,551) - - (142) (10) (5,008) (3,103)
Total (5,596,354) (5,859,258) (907,142) (1,783,927) (377,380) (255,183) (1,322,122) (1,103,423) (884,908) (901,510)
Income
    Taxation revenue
1,697 1,703 - - - - - - 13,707 13,506
    Goods and services
- - - - - - - - - -
    Other
409,988 384,790 729,096 1,248,308 706 418 6,697 4,097 70,905 144
Total 411,685 386,493 729,096 1,248,308 706 418 6,697 4,097 84,612 13,650
Assets
    Cash and cash equivalents
- - - - - - - - - -
    Personal benefits receivable
286 583 - - - - - - - -
    Trade and other receivables
581 570 4,283 4,164 84 143 487 504 4,989 3,870
    Other investments
4,912 4,744 964 773 - - 143,227 142,270 - -
    Land and buildings
- - - - - - - - 20,460 21,292
    Intangibles
- - 73,235 91,544 - - - - - -
    Inventories
28 39 105 150 - - - - - -
Total 5,807 5,936 78,587 96,631 84 143 143,714 142,774 25,449 25,162
Liabilities
    Overdraft
- - - - - - - - - -
    Suppliers payable
- (4) - (1,442) (13) (10) - (2) (3,237) (305)
    Subsidies payable
- - - - - - (3,213) - - -
    Personal benefits payable
(430,042) (764,647) - - - - - - (2,386) (292)
    Grants payable
(1) (1,772) (4,574) (34,822) (11,544) (39,503) (154,628) (131,985) (6,603) (2,373)
    Other payables
- - - - - - - - - -
    Subsidies provision
- - - - - - - - (392,000) (516,000)
    Personal benefits provision
- - - - - - - - - -
Total (430,043) (766,423) (4,574) (36,264) (11,557) (39,513) (157,841) (131,987) (404,226) (518,970)
Outcome 14 Payment to CAC Act Bodies Not Attributed Total
Expenses
    Suppliers
(15,769) (15,529) - - - - (499,420) (467,704)
    Subsidies
- - - - - - (9,440,623) (9,056,435)
    Personal Benefits
- - - - - - (33,722,536) (33,572,574)
    Grants
(8,548) (12,141) - - - - (7,030,094) (6,138,040)
    Other
(35,128) (47,703) (34,632) (37,325) - - (517,321) (491,445)
Total (59,445) (75,373) (34,632) (37,325) - - (51,209,994) (49,726,198)
Income
    Taxation revenue
- - - - - - 15,405 15,209
    Goods and services
- 188 - - - - - 188
    Other
8,700 411 - - - - 1,927,680 2,202,897
Total 8,700 599 - - - - 1,943,085 2,218,294
Assets
    Cash and cash equivalents
- - - - - 68,683 - 68,683
    Personal benefits receivable
- - - - - - 123,512 147,404
    Trade and other receivables
1,418 18 - - 51,266 104,349 423,513 254,547
    Other investments
- - - - - - 193,606 217,596
    Land and buildings
- - - - - - 20,460 21,292
    Intangibles
- - - - - - 73,235 91,544
    Inventories
193,704 205,814 - - - - 195,763 208,035
Total 195,122 205,832 - - 51,266 173,032 1,030,089 1,009,101
Liabilities
    Overdraft
- - - - (105,428) - (105,428) -
    Suppliers payable
(10,634) (4,163) - - - - (43,777) (15,636)
    Subsidies payable
- - - - - - (39,633) (47,835)
    Personal benefits payable
- - - - - - (847,723) (1,217,895)
    Grants payable
(6,952) (5,777) - - - - (358,468) (508,312)
    Other payables
- - - - - - (42,396) (26,791)
    Subsidies provision
- - - - - - (392,000) (516,000)
    Personal benefits provision
- - - - - - (1,064,534) (1,085,911)
Total (17,586) (9,940) - - - - (2,893,959) (3,418,380)

Note 29:   Receipts Subject to Cost Recovery Policy

2013
$'000
2012
$'000
Significant cost recovery arrangements
TGA 117,811 115,324
NICNAS 12,792 8,299
Prostheses Cost Recovery 4,125 4,163
Total receipts subject to cost recovery policy 134,728 127,786

Note 30:   Net Cash Appropriation Arrangements

2013
$'000
2012
$'000
Total comprehensive loss less depreciation/amortisation expenses previously funded through revenue appropriations1 (8,871) (10,253)
Plus: depreciation/amortisation expenses previously funded through revenue appropriation2 (43,202) (18,344)
Total comprehensive loss - as per the Statement of Comprehensive Income (52,073) (28,597)
  1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.
  2. Depreciation/amortisation expense for NICNAS and the TGA have been excluded as these agencies are not in receipt of the Departmental capital budget.