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2000-2001

Portfolio Additional Estimates Statements 2000-01 - Part D - Budgeted Financial Statements

These statements have been developed, and are submitted to the parliament, as a statement on the funding requirements being sought for the portfolio.

Financial statements

The following budgeted departmental/agency and administered financial statements for the Portfolio of Health and Aged Care are presented in this section. Statements are only presented for agencies that have been affected by Additional Estimates, that is, the Department of Health and Aged Care and the Health Insurance Commission.

Budget statement of revenues and expenses (budget operating statement)

This statement provides a picture of the expected financial results for the department/agency by identifying full accrual expenses and revenues, which highlights whether the department/agency is operating at a sustainable level in the short run.

Budget statement of assets and liabilities (budget balance sheet)

The budget statement of assets and liabilities shows the financial position of the department/agency. It enables management to track the department’s/agency’s assets and liabilities.

Budget cash flow statement

Budgeted cash flows, as reflected in the statement of cash flows, provides important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

Capital budget

The capital budget statement shows all proposed capital expenditure funded either through the Budget as appropriation by equity injections or as loans, and/or appropriations for administered capital, or as funds from internal sources or as funds from other sources.

1. Department of Health and Aged Care

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Departmental overview

The Department’s role is to lead the development of Australia’s health and aged care system, to ensure world class care for all Australians. In order to achieve this, the department will:

• provide expert policy advice, analysis and other services to the Government;
• work with portfolio agencies, State and Territory governments, professional organisations, industry groups, peak bodies, providers and consumers through consultation and collaboration;
• promote healthy living and communicating information about health and aged care services;
• manage the Commonwealth’s health and aged care programs to ensure the provision of quality, cost effective care; and
• safeguard health, safety and equity, in a way that imposes minimal regulatory burden.

Key priorities in 2000-2001 include addressing the health needs of communities living in rural and remote locations and Indigenous Australians, and enhancing the quality of life and care for older Australians. The department continues to encourage integrated care, as well as promote an optimum balance between public and private health care, reform the private health sector, and pursue reforms in general practice to better focus on people and outcomes.

The department will also undertake to improve the way in which it works by articulating a common purpose and clear direction, being more disciplined in priority setting and accountability, introducing more systematic and consistent ways of managing and developing staff, and building openness within the organisation.

During 2000-2001, the department will implement a new certified agreement focusing on people, leadership and performance improvement. The department will also continue to progress the implementation of Australia’s new tax system, address the Government’s competitive tendering and contracting agenda and review corporate activities through market testing. E-commerce will be introduced across all departmental business and the accrual based outcomes and outputs budgeting structure will be consolidated. Divisions will strive to improve internal business operations and further develop the link between performance and financial management.

Further information on the role of the department can be found under the description of each of the portfolio outcomes.
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Table D1.1: Budget statement of revenues and expenses - Department of Health and Aged Care

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Departmental Revenue and Expenses
Revenues
Revenue from government
Ordinary annual appropriations (net appropriations)	619,835	665,789	655,453	646,202	657,598
Revenue from other sources
Sales of goods and services	51,659	50,780	52,593	52,655	52,724
Other revenue from other sources	1,285	905	1,073	1,073	1,073
Total revenue	672,779	717,474	709,119	699,930	711,395
Expenses
Employees	206,978	229,147	230,976	233,593	229,758
Depreciation and amortisation	36,753	19,044	19,608	20,458	20,475
Other costs of providing goods and services	437,054	465,621	455,313	442,313	457,614
Other	9,514	686	686	572	457
Total expenses	690,299	714,498	706,583	696,936	708,304
Operating surplus (deficit) before extraordinary item and capital user charge	(17,520)	2,9761	2,536	2,994	3,091
Extraordinary items	(4,660)	-	-	-	-
Capital use charge	(549)	(4,317)2	(2,186)	(2,283)	(2,376)
Operating surplus (deficit) after extraordinary item and capital use charge	(22,729)	(1,341)	350	711	715
Administered Revenue and Expenses
Revenues
Taxation revenue
Interest and dividends	7,138	10,820	9,904	10,327	7,627
Other sources of non-taxation revenues	76,696	64,999	67,961	76,508	76,508
Appropriations	24,218,408	26,392,937	27,717,649	29,244,108	30,663,469
Total revenue	24,302,242	26,468,756	27,795,514	29,330,943	30,747,604
Expenses
Other costs of providing goods and services	14,112,936	17,000,997	17,954,305	18,851,465	19,778,274
Grants	9,516,678	9,391,940	9,763,344	10,392,643	10,885,195
Interest and financing costs	-	2,700	2,700	2,700	-
Total expenses	23,629,614	26,395,637	27,720,349	29,246,808	30,663,469
Net surplus (deficit) before abnormal and extraordinary items	672,628	73,119	75,165	84,135	84,135
Abnormal item	(513,108)	-	-	-	-
Extraordinary item	2,183	-	-	-	-
Net surplus (deficit)	161,703	73,119	75,165	(84,135)	(84,135)
Cash transfer to/from DoFA	(104,821)	(76,507)	(75,165)	84,135	84,135
Net surplus (deficit) after transfer	56,882	(3,388)	-	-	-

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Table D1.2: Budget statement of assets and liabilities - Department of Health and Aged Care

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Administered Assets and Liabilties
Provisions and payables
Grants	837,190	603,475	544,345	489,510	451,297
Other	1,010,825	1,249,715	1,359,154	1,477,410	1,644,871
Total provisions and payables	1,848,015	1,853,190	1,903,499	1,966,920	2,096,168
Equity
Accumulated results	(906,308)	(910,050)	(910,050)	(910,049)	(910,050)
Reserves	35,090	35,090	35,090	35,090	35,090
Capital	38,853	95,8385	152,823	209,808	266,793
Total equity	(832,365)	(779,122)	(722,137)	(665,151)	(608,167)
Total liabilities and equity	1,015,650	1,074,068	1,181,362	1,301,769	1,488,001
Financial assets
Cash	86,833	86,833	86,832	86,835	86,831
Receivables	887,272	951,514	1,059,001	1,179,348	1,365,457
Investments	34,165	34,165	34,165	34,165	34,165
Total financial assets	1,008,270	1,072,512	1,179,998	1,300,348	1,486,453
Non-financial assets
Other non-financial assets	7,380	1,556	1,364	1,421	1,548
Total non-financial assets	7,380	1,556	1,364	1,421	1,548
Total assets	1,015,650	1,074,068	1,181,362	1,301,769	1,488,001
Departmental Assets and Liabilities
Debt
Loans	4,000	10,900	9,100	7,300	5,500
Finance leases	3,728	3,728	3,728	3,728	3,728
Total debt	7,728	14,628	12,828	11,028	9,228
Provisions and payables
Employees	60,341	60,190	60,353	60,522	60,691
Supplies	18,386	15,620	15,620	15,620	15,620
Other	9,063	9,104	9,104	9,104	9,104
Total provisions and payables	87,790	84,914	85,077	85,246	85,415
Equity
Capital	4,073	5,9143	5,914	5,914	5,914
Accumulated results	10,321	8,980	9,330	10,041	10,756
Reserves	374	374	374	374	374
Total equity	14,768	15,268	15,618	16,329	17,044
Total liabilities and equity	110,286	114,810	113,523	112,603	111,687
Financial assets
Cash	16,880	24,865	27,236	32,249	37,066
Receivables	27,194	17,850	17,813	17,738	17,907
Total financial assets	44,074	42,715	45,049	49,987	54,973
Non-financial assets
Infrastructure, plant and equipment	21,881	22,705	21,621	20,636	19,737
Intangibles	41,199	46,199	43,669	38,803	33,807
Other	3,132	3,191	3,184	3,177	3,170
Total non-financial assets	66,212	72,095	68,474	62,616	56,714
Total assets	110,286	114,810	113,523	112,603	111,687

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Table D1.3: Budget cash flow statement - Department of Health and Aged Care

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Administered Cash Flows
Operating activities
Cash received
Interest and dividends	6,633	10,820	9,904	10,327	10,089
Appropriations receipts	23,443,452	26,411,375	27,668,483	29,182,861	33,904,307
Other	74,154	151,135	189,014	207,893	196,285
Total cash received	23,524,239	26,573,330	27,867,401	29,401,081	34,110,681
Cash used
Grants	(9,444,114)	(9,383,548)	(9,765,300)	(10,390,547)	(11,643,117)
Borrowing costs	-	(2,700)	(2,700)	(2,700)	(2,700)
Cash to CRF	(104,821)	(76,507)	(75,165)	(84,135)	(83,897)
Other	(13,966,144)	(17,110,575)	(18,024,237)	(18,923,696)	(22,380,971)
Total cash used	(23,515,079)	(26,573,330)	(27,867,402)	(29,401,078)	(34,110,685)
Net cash from operating activities	9,160	-	(1)	3	(4)
Financing activities
Cash received
Capital injection	34,483	-	-	-	-
Total cash received	34,483	-	-	-	-
Cash used
Trust accounts	(28,064)	-	-	-	-
Total cash used	(28,064)	-	-	-	-
Net cash from financing activities	6,419	-	-	-	-
Net increase/decrease in cash held	15,579	-	(1)	3	(4)
Add cash as at 1 July	71,254	86,833	86,833	86,832	86,835
Cash as at 30 June	86,833	86,833	86,832	86,835	86,831
Departmental Cash Flows
Operating activities
Cash received
Appropriations	609,412	665,789	655,453	646,202	657,598
Sales of goods and services	43,962	60,941	52,593	52,655	52,724
Other	2,094	9,4664	10,0134	9,1514	10,9314
Total cash received	655,468	736,196	718,059	708,008	721,253
Cash used
Employees	(203,757)	(229,299)	(230,813)	(233,424)	(229,589)
Suppliers	(431,975)	(468,387)	(455,313)	(442,313)	(457,614)
Other	-	(10,088)4	(9,589)4	(8,575)4	(10,484)4
Total cash used	(635,732)	(707,774)	(695,715)	(684,312)	(697,687)
Net cash from operating activities	19,736	28,422	22,344	23,696	23,566
Investing activities
Cash received
Proceeds from sale of property, plant and equipment	773	-	-	-	-
Total cash received	773	-	-	-	-
Cash used
Purchase of property, plant and equipment	(28,648)	(24,861)	(15,987)	(14,600)	(14,573)
Total cash used	(28,648)	(24,861)	(15,987)	(14,600)	(14,573)
Net cash from investing activities	(27,875)	(24,861)	(15,987)	(14,600)	(14,573)
Financing activities
Cash received
Proceeds from borrowings	4,000	6,900	-	-	-
Other	4,073	1,841	-	-	-
Total cash received	8,073	<strong>] 8,741	-	-	-
Cash used
Capital user charge paid	(861)	(4,317)	(2,186)	(2,283)	(2,376)
Repayments of borrowings			(1,800)	(1,800)	(1,800)
Total cash used	(861)	(4,317)	(3,986)	(4,083)	(4,176)
Net cash from financing activities	7,212	4,424	(3,986)	(4,083)	(4,176)
Net increase/decrease in cash held	(927)	7,985	2,371	5,013	4,817
Add cash as at 1 July	17,807	16,880	24,865	27,236	32,249
Cash as at 30 June	16,880	24,865	27,236	32,249	37,066

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Table D1.4: Capital budget - Department of Health and Aged Care

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Departmental
Total loans	4,000	6,900	-	-	-
Equity injection	4,073	1,841	-	-	-
Total capital appropriations	8,073	8,741	-	-	-
Represented by
Purchase of non-current assets	4,073	6,900	-	-	-
Other	4,000	1,841	-	-	-
Total departmental	8,073	8,741	-	-	-
Administered
Total equity injections	34,483	-	-	-	-
Other	-	97,425	98,466	104,577	95,451
Total capital appropriations	34,483	97,425	98,466	104,577	95,451
Represented by
Other	34,483	-	-	-	-
Total items	34,483	-	-	-	-
Purchase of non-current assets
Funded internally from departmental resources	-	24,861	15,987	14,600	14,573
Total items	-	24,861	15,987	14,600	14,573

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Notes to the financial statements

Basis of accounting

The agency budget statements are prepared in compliance with Australian Accounting Standards, Accounting Guidance Releases and having regard to Statements of Accounting Concepts.

Revision of 1999-2000 figures

The 1999-2000 figures have been revised to reflect actual expenses incurred in that financial year, and determinations made under ss. 6 and 7 of the 1999-00 Appropriation Act by the Minister for Finance and Administration taking into account, inter alia, agencies’ 1998-99 expenses which were not funded by 1998-99 appropriations. The adjustment reflects the transition from the 1998-99 cash-based appropriation regime to the 1999-2000 accrual-based appropriation regime.

Departmental

Budgeted statement of revenues and expenses

1. Operating surplus: A loss is no longer projected for the department. The equity injection projected to meet this loss is also no longer required (refer note 3).
2. Capital use charge: Capital use charge (CUC) projected following the revision of the Department’s net operating result. The CUC projected for 2000-2001 includes $2.179 million relating to 1999-2000.

Budgeted statement of assets and liabilities

1. Capital: The equity injection projected has been adjusted for the loss revision (refer note 1) and the inclusion of $1.841 million required to extinguish a prior year liability for administration of the 30% private health insurance rebate scheme by the Australian Taxation Office.


2. Cash received/used: 2000-2001 and forward years includes Goods and Services Tax credits and payments as required by the Urgent Issues Group (UIG) of the Australian Research Foundation.

Administered

Budgeted statement of assets and liabilities

1. Capital: The Department is to receive an equity injection of $56.985 million to extinguish a prior year liability relating to a contract for blood supply services with the Commonwealth Serum Laboratories.

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2. Health Insurance Commission

Agency overview

The Health Insurance Commission is a statutory authority created under the Health Insurance Commission Act 1973, within the Health and Aged Care Portfolio.

The Health Insurance Commission administers a range of government programs on behalf of the Department of Health and Aged Care, including Medicare, Pharmaceutical Benefits Scheme (PBS), aspects of the 30% Private Health Insurance Rebate, Australian Childhood Immunisation Register (ACIR), General Practice Immunisation Incentives (GPII), Practice Incentives Program (PIP), payments to hearing services providers, and compensation recoveries for Medicare and nursing home benefits. The Health Insurance Commission also administers the Commonwealth Childcare Rebate and Veterans' Treatment Accounts for other Departments.

In most of these programs, the Health Insurance Commission processes claims and benefits and records relevant data. The Health Insurance Commission is also responsible for preventing and detecting the occurrence of fraud and inappropriate servicing within Medicare and the PBS.

Working with consumers, health professionals and peak bodies, the Health Insurance Commission is developing information and communication products to aid health decision making and improve health outcomes for all Australians.

The relationship between the Health Insurance Commission and the department is underpinned by a service level agreement, known as the Strategic Partnership Agreement, and by a funding agreement, known as the Output Pricing Agreement.

Table D2.1: Budget statement of revenues and expenses - Health Insurance Commission

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Departmental Revenue and Expenses
Revenues
Revenue from other sources
Sales of goods and services	8,788	13,780	10,948	8,021	6,984
Other revenue from other sources	382,743	383,905	380,205	380,019	391,957
Total revenue	391,531	397,685	391,153	388,040	398,941
Expenses
Employees	235,481	198,307	196,976	198,450	204,666
Supplier	154,755	177,144	163,436	158,415	165,827
Depreciation and amortisation	26,079	14,111	22,168	28,548	18,825
Total expenses	416,315	389,562	382,580	385,413	389,318
Operating result before capital user charge	(24,784)	8,123	8,573	2,627	9,623
Capital user charge	-	-	-	-	-
Extraordinary items	25,244	-	-	-	-
Accumulated results at year end	(54,756)	(46,633)	(38,060)	(35,433)	(25,810)

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Table D2.2: Budget statement of assets and liabilities - Health Insurance Commission

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Departmental Assets and Liabilities
Provisions and payables
Employees	59,433	54,041	56,493	58,969	61,524
Supplies	44,600	37,602	37,602	37,602	37,602
Other	20,007	19,591	19,591	19,591	19,591
Total provisions and payables	124,040	111,234	113,686	116,162	118,717
Equity
Accumulated results	(54,756)	(46,633)	(38,060)	(35,433)	(25,810)
Reserves	17,739	17,739	17,739	17,739	17,739
Capital	55,166	55,166	55,166	55,166	55,166
Total equity	18,149	26,272	34,845	37,472	47,095
Total liabilities and equity	142,189	137,506	148,531	153,634	165,812
Financial assets
Cash	51,961	37,183	38,474	50,187	60,190
Receivables	10,276	18,964	18,964	18,964	18,964
Total financial assets	62,237	56,147	57,438	69,151	79,154
Non-financial assets
Infrastructure, plant and equipment	39,473	20,000	20,000	20,000	20,000
Intangibles	31,324	53,705	63,439	56,829	59,004
Other	9,155	7,654	7,654	7,654	7,654
Total non-financial assets	79,952	81,359	91,093	84,483	86,658
Total assets	142,189	137,506	148,531	153,634	165,812

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Table D2.3: Budget cash flow statement- Health Insurance Commission

	Actual	Revised Budget	Estimated
	1999-00 $'000	2000-01 $'000	2001-02 $'000	2002-03 $'000	2003-04 $'000
Departmental Cash Flows
Operating activities
Cash received
Sales of goods and services	12,348	13,365	10,753	7,827	6,788
Other	387,869	383,905	380,205	380,019	391,957
Total cash received	400,217	397,270	390,958	387,846	398,745
Cash used
Employees	(228,873)	(194,621)	(194,329)	(195,780)	(201,915)
Supplies	(147,323)	(177,144)	(163,436)	(158,415)	(165,827)
Total cash used	(376,196)	(371,765)	(357,765)	(354,195)	(367,742)
Net cash from operating activities	24,021	25,505	33,193	33,651	31,003
Investing activities
Cash received
Proceeds from sale of property, plant and equipment	10,434	-	-	-	-
Total cash received	10,434	-	-	-	-
Cash used
Purchase of property, plant and equipment	30,010	40,283	31,902	21,938	21,000
Total cash used	30,010	40,283	31,902	21,938	21,000
Net cash from investing activities	(19,576)	(40,283)	(31,902)	(21,938)	(21,000)
Net increase/decrease in cash held	4,445	(14,778)	1,291	11,713	10,003
Add cash as at 1 July	47,516	51,961	37,183	38,474	50,187
Cash as at 30 June	51,961	37,183	38,474	50,187	60,190

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