Final Annual Report - Health Workforce Australia

Note 10: Contingent Liabilities and Assets

Notes to and forming part of the financial statements for the period 1 July 2014 to 7 October 2014.

Page last updated: 18 May 2015

Notes to and forming part of the financial statements for the period 1 July 2014 to 7 October 2014
2015
$’000
2014
$’000
Contingent liabilities
Balance from previous period
19,295
1,433
Grant expenditure recoveries
-
17,862
Obligations expired 
(19,295)
-
Total contingent liabilities
-
19,295

Quantifiable Contingencies

The Schedule of Contingencies reports nil contingent liabilities disclosure in respect of returned grant expenditure recoveries (2014: $19,295,000).

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.

The funding agreement between HWA and the Department of Health was terminated on 5 August 2014. As such no such liability to return recovered funds exists.

Significant Remote Contingencies

The entity had no significant remote contingencies.