Final Annual Report - Health Workforce Australia

Note 10: Contingent Liabilities and Assets

Notes to and forming part of the financial statements for the year ended 30 June 2014

Page last updated: 18 May 2015

Note 10: Contingent Liabilities and Assets
  2014 2013
Contingent liabilities $’000 $’000
Balance from previous period 1,433 -
Grant expenditure recoveries 17,862 1,433
Total contingent liabilities 19,295 1,433

Quantifiable Contingencies

"The Schedule of Contingencies reports $19,295,000 of contingent liabilities disclosure in respect of grant expenditure recoveries (2013: $1,433,000)."

Grant expenditure recoveries

"In line with clauses 7.4 and 7.4A of the Health Funding Agreement, HWA must notify the Commonwealth of any funds it recovers on terminated or expired contracts. Upon receipt of the notice from HWA, the Commonwealth may by written notice require HWA to repay some or all of the recovered funds to the Commonwealth. HWA do not yet know whether they will be required to repay these amounts to the Commonwealth.

Where these recoveries related to grant payments made by HWA in the current year, they have been set-off against grant expenditure ($7.3m). Where they related to grant payments made (and expensed) in prior years, they have been recorded in other revenue ($7.5m). There was an additional $3m disclosed in the contingent liability note above that relates to grant recoveries recognised in the prior year but the funding agreements were only terminated in the current year.

These amounts have not been provided for in the financial statements."

Significant Remote Contingencies

The entity had no significant remote contingencies.