Part 4 Financial Statements - Department of Health and … · Part 4 Financial Statements Department of Health and Human Services ... Statement of Changes in Equity for the Year Ended

Part 4 Financial Statements Department of Health and Human Services

Statement of Comprehensive Income for the Year Ended 30 June 2012 210

Statement of Financial Position as at 30 June 2012 212

Statement of Cash Flows for the Year Ended 30 June 2012 213

Statement of Changes in Equity for the Year Ended 30 June 2012 215

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2012 216

Independent Auditor’s Report 313

Statement of Certification 315

Tasmanian Ambulance Service

Statement of Comprehensive Income for the Year Ended 30 June 2012 317

Statement of Financial Position as at 30 June 2012 319

Statement of Changes in Equity for the Year Ended 30 June 2012 320

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2012 320

Independent Auditor’s Report 351

Statement of Certification 353

DHHS Annual Report 2011-2012 – Part 4 – Financial Statements Page 209 of 355

Financial Statements Department of Health and Human Services

DHHS Annual Report 2011-2012 - Part 4 - Financial Statements Page 210 of 355

Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Continuing Operations

Revenue and Other Income from Transactions

Revenue from Government

Appropriation revenue - recurrent 2.9(a) 1 488 161 1 530 234 1 522 158

Appropriation revenue - works and services 2.9(a) 480 9 768 1 336

Other revenue from Government 2.9(a) 0 0 2 995

Revenue from Special Capital Investment Funds 13 249 13 249 9 850

Grants 2.9(b), 8.1 65 000 63 600 59 742

Sales of goods and services 2.9(c), 8.2 175 942 185 868 168 958

Interest 2.9(d) 1 371 770 2 344

Contributions received 2.9(e), 8.3 0 0 90

Other revenue 2.9(f), 8.4 24 445 39 554 29 918

Total Revenue and Other Income from Transactions 1 768 648 1 843 043 1 797 391

Expenses from Transactions

Employee benefits 2.10(a), 9.1 964 094 1 002 020 971 688

Depreciation and amortisation 2.10(b), 9.2 51 857 61 044 59 467

Supplies and consumables 9.3 446 807 462 719 471 341

Grants and subsidies 2.10(c), 9.4 275 588 306 187 234 504

Borrowing costs 2.10(d), 9.5 9 623 9 626 9 913

Other expenses 2.10(f), 9.6 71 230 69 056 78 835

Total Expenses from Transactions 1 819 199 1 910 652 1 825 748

Net Result from Transactions (Net Operating Balance) ( 50 551) ( 67 609) ( 28 357)

Department of Health and Human Services Statement of Comprehensive Income for the Year Ended 30 June 2012


Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Non-Operational Capital Funding


Appropriation revenue - works and services 2.9(a) 112 636 57 673 125 055

Other revenue from Government 2.9(a) 741 367 16 463

Revenue from Special Capital Investment Funds 2.9(a) 95 044 49 678 43 127

Total Non-Operating Capital Funding 208 421 107 718 184 645

Net result from Transactions (Net Operating Balance) 157 870 40 109 156 288

Other Economic Flows Included in Net Result

Net gain/(loss) on non-financial assets 2.11(a)(c), 10.1 9 225 ( 6 783) ( 294)

Net actuarial gains/(losses) of superannuation defined benefit plans 12.4 0 ( 13 921) ( 1 235)

2.12(b), 10.2 0 ( 2 068) ( 910)

Other gains/(losses) from other economic flows 2.12(d), 10.3 0 ( 699) 0

Total Other Economic Flows Included in Net Result 9 225 ( 23 471) ( 2 439)

Net Result from Continuing Operations 167 095 16 638 153 849

Other Economic Flows - Other Non-Owner Changes in Equity

Changes in asset revaluation reserve 14.1 53 436 13 261 226 666

53 436 13 261 226 666

Comprehensive Result 220 531 29 899 380 515

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes. Budget information refers

to original estimates and has not been subject to audit. Explanations of material variances between budget and actual outcomes

are provided in Note 5 of the accompanying notes.

Total Other Economic Flows - Other Non-Owner Changes in Equity

Net gain/(loss) on financial instruments and statutory receivables/payables


Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Assets

Financial Assets

Cash and deposits 2.12(a), 15.1 56 169 85 650 61 035

Receivables 2.12(b), 11.1 23 663 22 783 21 457

Loan advances 2.12(c), 11.2 5 500 4 567 5 855

Equity investments 2.12(d), 11.3 4 059 4 623 3 152

Other financial assets 2.12(e), 11.4 10 095 6 720 10 015

Non-Financial Assets

Inventories 2.12(f), 11.5 13 062 13 832 11 265

Assets held for sale 2.12(g), 11.6 6 839 6 093 8 841

Property, plant and equipment 2.12(h), 11.7 2 991 396 2 898 600 2 867 035

Intangibles 2.12(i), 11.8 11 384 16 399 13 716

Other assets 2.12(j), 11.9 0 5 090 5 377

Total Assets 3 122 167 3 064 357 3 007 748

Liabilities

Payables 2.13(a), 12.1 27 823 38 760 40 431

Interest bearing liabilities 2.13(b), 12.2 209 808 209 808 216 620

Employee benefits 2.13(d), 12.3 217 330 208 492 183 930

Superannuation 2.13(e), 12.4 15 036 29 228 15 645

Other liabilities 2.13(f), 12.5 60 224 43 716 47 255

Total Liabilities 530 221 530 004 503 881

Net Assets 2 591 946 2 534 353 2 503 867

Equity

Contributed capital 6 094 6 094 6 094

Reserves 14.1 1 788 296 1 921 389 1 908 128

Accumulated funds 797 556 606 870 589 645

Total Equity 2 591 946 2 534 353 2 503 867

This Statement of Financial Position should be read in conjunction with the accompanying notes. Budget information refers to original

estimates and has not been subject to audit. Explanations of material variances between budget and actual outcomes are provided in

Note 5 of the accompanying notes.

Department of Health and Human Services Statement of Financial Position as at 30 June 2012


Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Cash Flows from Operating ActivitiesInflows

(Outflows)

Inflows

(Outflows)

Inflows

(Outflows)

Cash Inflows

Appropriation receipts - recurrent 1 488 161 1 530 234 1 519 952

Appropriation receipts - works and services 480 6 980 3 542

13 249 13 249 9 850

Grants 65 000 63 666 60 113

Sales of goods and services 174 518 187 139 165 597

GST receipts 60 061 87 293 87 780

Interest received 1 371 701 2 071

Other cash receipts 28 075 41 306 38 315

Total Cash Inflows 1 830 915 1 930 568 1 887 220

Cash Outflows

Employee benefits ( 855 505) ( 883 839) ( 874 108)

Superannuation ( 86 172) ( 93 307) ( 91 705)

Borrowing costs ( 9 623) ( 9 626) ( 9 913)

GST payments ( 60 060) ( 85 912) ( 90 569)

Grants and transfer payments ( 275 588) ( 260 833) ( 233 987)

Supplies and consumables ( 447 032) ( 469 113) ( 480 365)

Other cash payments ( 70 650) ( 79 467) ( 79 053)

Total Cash Outflows (1 804 630) (1 882 097) (1 859 701)

Net Cash from (Used By) Operating Activities 15.2 26 285 48 471 27 519

Department of Health and Human Services Statement of Cash Flows for the Year Ended 30 June 2012

Receipts from Special Capital Investment Funds


Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Cash Flows from Investing Activities

Cash Inflows

Proceeds from the disposal of non-financial assets 15 640 12 662 17 942

Receipts from non-operational capital funding - Works and services 112 636 60 945 125 472

95 044 50 222 42 583

Receipts from non-operational capital funding - Grants 0 0 0

Repayment of loans by other entities 0 1 167 1 186

Total Cash Inflows 223 320 124 996 187 183

Cash Outflows

Payment for acquisition of non-financial assets ( 238 463) ( 141 479) ( 229 485)

Payments for investments ( 3 400) ( 561) ( 747)

Total Cash Outflows ( 241 863) ( 142 040) ( 230 232)

Net Cash from (Used By) Investing Activities ( 18 543) ( 17 044) ( 43 049)

Cash Flows from Financing Activities

Cash Outflows

Repayment of borrowings ( 6 812) ( 6 812) ( 6 669)

Total Cash Outflows ( 6 812) ( 6 812) ( 6 669)

Net Cash from (Used By) Financing Activities ( 6 812) ( 6 812) ( 6 669)

Net Increase (Decrease) in Cash and Cash Equivalents Held 930 24 615 ( 22 197)

Cash and Deposits at the Beginning of the Reporting Period 55 239 61 035 83 232

Cash and Deposits at the End of the Reporting Period 15.1 56 169 85 650 61 035

Receipts from non-operational capital funding - Special Capital Investment Funds

This Statement of Cash Flows should be read in conjunction with the accompanying notes. Budget information refers to original

estimates and has not been subject to audit. Explanations of material variances between budget and actual outcomes are

provided in Note 5 of the accompanying notes.


Contributed Capital

$'000

Reserves $'000

Accumulated

Funds $'000

Total Equity $'000

Balance as at 1 July 2011 6 094 1 908 128 589 645 2 503 867

Adjustment due to prior period error 1 0 0 587 587

Total comprehensive result 0 13 261 16 638 29 899

Balance as at 30 June 2012 6 094 1 921 389 606 870 2 534 353

Contributed Capital

$'000

Reserves $'000

Accumulated

Funds $'000

Total Equity $'000

Balance as at 1 July 2010 6 094 1 681 462 435 728 2 123 285

Adjustment due to prior period error 0 0 65 65

Total comprehensive result 0 226 666 153 852 380 515

Balance as at 30 June 2011 6 094 1 908 128 589 645 2 503 867

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Notes:

1 This is a prior period error of $587 000 relating to a correction of Equity Investment recognition.

Department of Health and Human Services Statement of Changes in Equity for the Year Ended 30 June 2012


Notes Page No.

Note 1 Administered Financial Statements 219

1.1 Schedule of Administered Income and Expenses 219

1.2 Schedule of Administered Assets and Liabilities 220

1.3 Schedule of Administered Cash Flows 221

1.4 Schedule of Administered Changes in Equity 221

Note 2 Significant Accounting Policies 222

2.1 Objectives and Funding 222

2.2 Basis of Accounting 222

2.3 Reporting Entity 223

2.4 Functional and Presentation Currency 223

2.5 Changes in Accounting Policies 223

2.6 Administered Transactions and Balances 227

2.7 Activities Undertaken Under a Trustee or Agency Relationship 227

2.8 228

2.9 Income from Transactions 228

2.10 Expenses from Transactions 229

2.11 Other Economic Flows Included in Net Result 231

2.12 Assets 232

2.13 Liabilities 234

2.14 Leases 237

2.15 Judgements and Assumptions 237

2.16 Foreign Currency 238

2.17 Comparative Figures 238

2.18 Budget Information 238

2.19 Rounding 238

2.20 Departmental Taxation 238

2.21 Goods and Services Tax 238

Note 3 Agency Output Schedules 239

3.1 Output Group Information 239

3.2 240

3.3 250

3.4 Administered Output Schedule 251

3.5 252

3.6 252

Note 4 Expenditure under Australian Government Funding Arrangements 252

Reconciliation of Total Output Groups Comprehensive Result to Statement of Comprehensive

IncomeReconciliation of Total Output Groups Net Assets to Statement of Financial Position

Reconciliation of Total Administered Output Groups Comprehensive Result to Administered

Statement of Changes in EquityReconciliation of Total Administered Groups' Net Assets to Schedule of Administered Assets and

Liabilities

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2012

Transactions by the Government as Owner – Restructuring of Administrative Arrangements


Notes Page No.

Note 5 Explanations of Material Variances between Budget and Actual Outcomes 253

5.1 Statement of Comprehensive Income 253

5.2 Statement of Financial Position 255

5.3 Statement of Cash Flows 256

Note 6 Events Occurring After Balance Date 257

Note 7 Underlying Net Operating Balance 259

Note 8 Income from Transactions 260

8.1 Grants 260

8.2 Sales of Goods and Services 261

8.3 Contributions Received 261

8.4 Other Revenue 262

Note 9 Expenses from Transactions 262

9.1 Employee Benefits 262

9.2 Depreciation and Amortisation 263

9.3 Supplies and Consumables 264

9.4 Grants and Subsidies 265

9.5 Borrowing Costs 266

9.6 Other Expenses 266

Note 10 Other Economic Flows Included in Net Result 266

10.1 Net Gain/(Loss) on Non-Financial Assets 266

10.2 Net Gain/(Loss) on Financial Instruments and Statutory Receivables/Payables 266

10.3 Other Gains/(Losses) from Other Economic Flows 267

Note 11 Assets 267

11.1 Receivables 267

11.2 Loan Advances 268

11.3 Equity Investments 268

11.4 Other Financial Assets 268

11.5 Inventories 269

11.6 Assets Held for Sale 269

11.7 Property, Plant and Equipment 270

11.8 Intangibles 273

11.9 Other Assets 274

Note 12 Liabilities 274

12.1 Payables 274

12.2 Interest Bearing Liabilities 275


12.4 Superannuation 275

12.5 Other Liabilities 281

Note 13 Commitments and Contingencies 281

13.1 Schedule of Commitments 281

13.2 Contingent Assets and Liabilities 284


Notes Page No.

Note 14 Reserves 286

14.1 Reserves 286

Note 15 Cash Flow Reconciliation 286

15.1 Cash and Deposits 286

15.2 Reconciliation of Net Result to Net Cash from Operating Activities 287

15.3 Acquittal of Capital Investment and Special Capital Investment Funds 288

15.4 Financing Facilities 291

Note 16 Financial Instruments 291

16.1 Risk Exposures 291

16.2 Categories of Financial Assets and Liabilities 296

16.3 Reclassifications of Financial Assets 296

16.4 296

16.5 Net Fair Values of Financial Assets and Liabilities 297

Note 17 Details of Consolidated Entities 298

17.1 List of Entities 299

Note 18 Notes to Administered Statements 300

18.1 Explanations of Material Variances Between Budget and Actual Outcomes 300

18.2 Administered Underlying Net Operating Balance 302

18.3 Administered Revenue from Government 303

18.4 Administered Grants 304

18.5 Administered Grants and Subsidies 304

18.6 Administered Receivables 305

18.7 Administered Payables 305

18.8 305

18.9 Financial Instruments (Administered) 306

18.10 Categories of Administered Financial Assets and Liabilities 309

18.11 Comparison Between Carrying Amount and Net Fair Value of Financial Assets and Liabilities 309

18.12 Net Fair Values of Administered Financial Assets and Liabilities 310

Note 19 Transactions and Balances Relating to a Trustee or Agency Arrangement 312

Reconciliation of Administered Net Result to Net Cash from Administered Operating Activities

Comparison Between Carrying Amount and Net Fair Value of Financial Assets and Liabilities


Note 1 Administered Financial Statements

1.1 Schedule of Administered Income and Expenses

· Highly Specialised Drugs

· Medical Specialist Outreach Program

· Transitional Care Program

· Extended Aged Care at Home and Community Aged Care Packages and

· Regional Health Services Program.

Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Administered Revenue and Other Income from Transactions


Appropriation revenue - recurrent 2.9(a), 18.3 24 876 34 859 37 550

Grants 2.9(b), 18.4 36 680 45 479 46 133

61 556 80 338 83 683

Administered Expenses from Transactions

Grants and Transfer Payments 2.10(c), 18.5 24 957 35 720 38 734

Transfer to the Consolidated Fund 36 600 46 057 44 020

Total Administered Expenses from Transactions 61 557 81 777 82 754

Total Administered Revenue and Other Income from Transactions

The Agency administers Australian Government revenue collected on behalf of the Consolidated Fund in the form of Commonwealth Recurrent Grants and expenses in relation to Children Abused in Care and Aurora Energy Pensioner Concessions.

Australian Government Recurrent Grants reflect Commonwealth Own Purpose Expenditure (COPE) payments which are paid from the responsible Australian Government Agency to the relevant State Agency and receipted to the Consolidated Fund. Australian Government COPEs in 2011-2012 include:

The Children Abused in Care program is open to people who were abused in State care. The program was scheduled to be completed by 30 June 2011 but some claims remain to be processed.

The Agency provides funding to Aurora Energy for the purpose of providing a subsidy to eligible Tasmanian pensioners and Health Care Card holders on their electricity accounts. In 2010-2011 the Government provided funding of $7.9 million to provide eligible concession holders with a one-off payment of $100 as additional cost of living support for Tasmanian low income households.


Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

( 1) ( 1 439) 929

0 0 0

Administered Comprehensive Result ( 1) ( 1 439) 929

1.2 Schedule of Administered Assets and Liabilities

Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Administered Assets

Administered financial assets

Receivables 2.12(b), 18.6 2 489 3 988 4 446

Total Administered Assets 2 489 3 988 4 446

Administered Liabilities

Payables 2.13(a), 18.7 6 036 8 041 7 059

Total Administered Liabilities 6 036 8 041 7 059

Administered Net Liabilities ( 3 547) ( 4 053) ( 2 614)

Administered Equity

Accumulated Funds ( 3 547) ( 4 053) ( 2 614)

Total Administered Equity ( 3 547) ( 4 053) ( 2 614)

Administered Net Result from Transactions Attributable to the State

Administered other Economic Flows in Administered Net Result

This Schedule of Administered Income and Expenses should be read in conjunction with the accompanying notes. Budget

information refers to original estimates and has not been subject to audit. Explanations of material variances between budget and

actual outcomes are provided in Note 18.1 of the accompanying notes.

This Schedule of Administered Assets and Liabilities should be read in conjunction with the accompanying notes. Budget

information refers to original estimates and has not been subject to audit. Explanations of material variances between budget and

actual outcomes are provided in Note 18.1 of the accompanying notes.


1.3 Schedule of Administered Cash Flows

Notes2012

Budget$'000

2012Actual

$'000

2011Actual

$'000

Administered Cash Flows from Operating Activities

Administered Cash Inflows

Appropriation receipts - recurrent 24 876 34 859 37 550

Grants - Continuing operations 36 600 46 057 44 020

Total Administered Cash Inflows 61 476 80 916 81 570

Administered Cash Outflows

Grants and transfer payments ( 24 876) ( 34 859) ( 37 550)

Transfers to the Consolidated Fund ( 36 600) ( 46 057) ( 44 020)

Total Administered Cash Outflows ( 61 476) ( 80 916) ( 81 570)

Administered Net Cash from (Used By) Operating Activities 18.8 0 0 0

Net Increase (Decrease) in Administered Cash Held 0 0 0

0 0 0

0 0 0

1.4 Schedule of Administered Changes in Equity

Accumulated

Deficit $'000

Total Equity $'000

Balance as at 1 July 2011 ( 2 614) ( 2 614)

Total comprehensive result ( 1 439) ( 1 439)

Balance as at 30 June 2012 ( 4 053) ( 4 053)

Accumulated

Deficit$'000

Total Equity $'000

Balance as at 1 July 2010 ( 3 543) ( 3 543)

Total comprehensive result 929 929

Balance as at 30 June 2011 ( 2 614) ( 2 614)

Administered Cash and Deposits at the Beginning of the Reporting Period

Administered Cash and Deposits at the End of the Reporting Period

This Schedule of Administered Cash Flows should be read in conjunction with the accompanying notes. Budget information

refers to original estimates and has not been subject to audit. Explanations of material variances between budget and actual

outcomes are provided in Note 18.1 of the accompanying notes.

This Schedule of Administered Changes in Equity should be read in conjunction with the accompanying notes.


Note 2 Significant Accounting Policies

2.1 Objectives and Funding

2.2 Basis of Accounting

·

·

The Financial Statements have been prepared on an accrual basis and, except where stated, are in accordance with the historical cost convention. The accounting policies are generally consistent with the previous year except for those changes outlined in Note 2.5.

Compliance with the Australian Accounting Standards (AAS) may not result in compliance with International Financial Reporting Standards (IFRS), as the AAS include requirements and options available to not-for-profit organisations that are inconsistent with IFRS. The Agency is considered to be not-for-profit and has adopted some accounting policies under the AAS that do not comply with IFRS.

The Financial Statements were signed by the Secretary on 15 August 2012 and were resigned on 27 September 2012.

the Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990.

The Financial Statements are a general purpose financial report and have been prepared in accordance with:

Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and

The Agency is structured to meet the following outcomes: healthier individuals, stronger families, stronger healthier communities and healthier organisations. Agency activities are classified as either controlled or administered.

Controlled activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Agency in its own right. Administered activities involve the management or oversight by the Agency, on behalf of the Government, of items controlled or incurred by the Government.

The Agency is predominantly funded through Parliamentary appropriations. In addition, it provides services to fee paying privately insured patients, or patients who will receive compensation for these expenses due to the circumstances surrounding their injury. It derives rental revenue and asset sale income from Housing Tasmania properties and receives income from borrowers in the Home Ownership Assistance Program (HOAP). The financial report encompasses all funds through which the Agency controls resources to carry on its functions.

The Department of Health and Human Services' (the Agency) objective is to improve the health and wellbeing of Tasmanians.


2.3 Reporting Entity

2.4 Functional and Presentation Currency

2.5 Changes in Accounting Policies

(a) Impact of New and Revised Accounting Standards

·

·

·

These Financial Statements are presented in Australian dollars, which is the Agency's functional currency.

The Financial Statements include all the controlled activities of the Agency, including Housing Tasmania and Ambulance Tasmania, with the exception of Tasmanian Affordable Housing Limited (TAHL). The Financial Statements consolidate material transactions and balances of the Agency and entities included in its output groups. Material transactions and balances between the Agency and such entities have been eliminated. Summary information relating to TAHL is disclosed in Note 17 - Details of Consolidated Entities.

The Financial Statements have been prepared as a going concern. The continued existence of the Agency, undertaking its current activities, is dependent on Government policy and on continuing appropriations by Parliament for the Agency’s administration and activities. National Health Reform was implemented in Tasmania from 1 July 2012 with the establishment of three Tasmanian Health Organisations (THOs) under the Tasmanian Health Organisations Act 2011 . The THOs replace the Area Health Services previously managed directly by the Agency. Please refer to Note 6 for further details.

AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (AASBs 1, 7, 101, and 134 and Interpretation 13) – This Standard amends a range of Australian Accounting Standards and Interpretation as a consequence of the annual improvements project.

AASB 1054 Australian Additional Disclosures – This Standard in conjunction with AASB 2011-1 Amendments to AAS arising from the Trans Tasman Convergence Project, removes disclosure

requirements form other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards. There is no financial impact.

AASB 2009-12 Amendments to Australian Accounting Standards (AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 and 1031 and Interpretations 2, 4, 16, 1039 and 1052) – This Standard makes editorial amendments to a range of Australian Accounting Standards and Interpretations. There is no financial impact.

In the current year, the Agency has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period. These include:


·

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(b) Impact of New and Revised Accounting Standards Yet to be Applied

·

The amendments to AASB 101 clarify the presentation of the Statements of Changes in Equity. The disaggregation of other comprehensive income reconciling the carrying amount at the beginning and the end of the period for each component of equity is no longer required. There is no financial impact.

The amendments to AASB 7 clarify financial instrument disclosures in relation to credit risk. The carrying amount of financial assets that would otherwise be past due or impaired, whose terms have been renegotiated, is no longer required to be disclosed. There is no financial impact.

AASB 2010-5 Amendments to Australian Accounting Standards (AASBs 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 and 1038 and Interpretations 112, 115, 127, 132 and 1042) – This Standard makes editorial amendments to a range of Australian Accounting Standards. There is no financial impact.

AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets (AASBs 1 and 7) – This Standard introduces additional disclosure relating to transfers of financial assets in AASB 7. An entity shall disclose all transferred financial assets that are not derecognised and any continuing involvement in a transferred asset, existing at the reporting date, irrespective of when the related transfer transaction occurred. There is no financial impact.

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans Tasman Convergence Project (AASBs 1, 5, 101, 107,108, 121, 128, 132 and 134 and Interpretations 2, 112 and 113) - this Standard, in conjunction with AASB 1054, removes disclosure requirements from other Standard and incorporates them in a single Standards to achieve convergence between Australian and New Zealand Accounting Standards. There is no financial impact.

AASB 2011-15 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation (AASBs 127, 128 and 131) - t his Standard extends the relief from consolidation, the equity method and proportionate consolidation by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compliant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity are not-for-profit non-reporting entities that comply with Australian Accounting Standards. There is no financial impact.

AASB 9 Financial Instruments – This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. The Standard was reissued in December 2010. The Agency has not yet determined the potential financial impact of the standard.

The following applicable Standards have been issued by the AASB and are yet to be applied:


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AASB 11 Joint Arrangements – This Standard supersedes AASB 131 Interest in Joint Ventures, introducing a number of changes to accounting treatments. The Standard was issued in August 2011. The Agency has not yet determined the application or the potential impact of the Standard.

AASB 12 Disclosure of Interests in Other Entities - This Standard supersedes disclosure requirements under AASB 127 Consolidated and Separate Financial Statements and AASB 131 Interests in Joint Ventures. The Standard was issue in August 2011. The Agency has not yet determined the application or the potential impact of the Standard.

AASB 13 Fair Value Measurement – This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value measurements. There is no financial impact.

AASB 119 Employee Benefits – This Standard supersedes AASB 119 Employee Benefits introducing a number of changes to accounting treatments. The Standard was issued in September 2011. The Agency has not yet determined the application or the potential impact of the Standard.

AASB 127 Separate Financial Statements – This standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements introducing a number of changes to accounting treatments. The Standard was issue in August 2011. The Agency has not yet determined the application or the potential impact of the Standard.

AASB 128 Investments in Associates and Joint Ventures – This Standard supersedes AASB 128 Investments in Associates and introduces a number of changes to accounting treatments. The Standard

was issued in August 2011. The Agency has not yet determined the application or the potential impact

of the Standard.

AASB 1053 Application of Tiers of Australian Accounting Standards – This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. The Standard does not have any financial impact on the Agency. However, it may affect disclosures if reduced disclosure requirements apply.

AASB 2010-2 Amendments to Australian Accounting Standards Arising from Reduced Disclosure Requirements (AASBs 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050, and 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129, and 1052) – This Standard makes amendments to Australian accounting Standards and

Interpretations to introduce reduced disclosure requirements for certain types of entities. There is no financial impact.

AASB 10 Consolidated Financial Statements – This Standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purpose Entities , introducing a number of changes to accounting treatments. The standard was issued in August 2011. The Agency has not yet determined the application or the potential impact of the Standard.


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AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 [AASBs 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136,

138, 139, 140, 141, 1004, 1023 and1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 and 132] – This Standard replaces the existing definition of fair value guidance in other Australian Accounting

Standards and Interpretations as the result of issuing AASB 13 in September 2011. There is no expected financial impact.

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASBs 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 and 1049] – This Standard requires to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). It is not expected to have a financial impact.

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements (AASBs 127, 128 and 131) – This Standard extends relief from consolidation, the equity method and proportionate consolidation by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compliant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity comply with Australian Accounting Standards or Australian Accounting Standards – Reduced Disclosure Requirements. It is not expected to have a financial impact.

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (AASBs 1, 2, 3, 5, 7, 9, 2009 11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 and 1038 and Interpretations 5, 9, 16 and 17) – This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. It is not expected to have a financial impact.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (AASBs 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 and 1038 and Interpretations 2, 5, 10, 12, 19, and 127) – This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB in December 2010. It is not anticipated that there will be any financial impact.

AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans Tasman Convergence Project – Reduced Disclosure Requirements (AASBs 101 and 1054) – This Standard makes amendments to

introduce reduced disclosure requirements for certain types of entities. There is no expected financial impact of applying these changes, as the Agency is a Tier 1 entity.


·

·

(c) Voluntary Changes in Accounting Policy

2.6 Administered Transactions and Balances

2.7 Activities Undertaken Under a Trustee or Agency Relationship

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) (AASBs 1, 8, 101, 124, 134, 1049 and 2011 8 and Interpretations 14) – This Standard makes amendments to other Australian Accounting Standards and Interpretation as a result of issuing AASB 119 Employee Benefits in September 2011. It is not expected to have a financial impact.

AASB 2011-12 Amendments to Australian Accounting Standards 119 (September 2011) arising from Reduced Disclosure Requirements – This Standard gives effect to Australian Accounting Standards – Reduced Disclosure Requirements for AASB 119 (September 2011). There is no financial impact.

The Agency has not adopted any new accounting policies during the financial year ended 30 June 2012.

The Agency administers, but does not control, certain resources on behalf of the Government as a whole. It is accountable for the transactions involving such administered resources, but does not have the discretion to deploy resources for the achievement of the Agency’s objectives.

Administered assets, liabilities, expenses and revenues are disclosed in Note 1 to the Financial

Transactions relating to activities undertaken by the Agency in a trust or fiduciary (agency) capacity do not form part of the Agency’s activities. Trustee and agency arrangements, and transactions/balances relating to those activities, are neither controlled nor administered.

Fees, commissions earned and expenses incurred in the course of rendering services as a trustee or through an agency arrangement are recognised as controlled transactions.


2.9 Income from Transactions

(a) Revenue from Government

(b) Grants

(c) Sales of Goods and Services

(d) Interest

Interest on funds invested is recognised as it accrues using the effective interest rate method.

Amounts earned in exchange for the provision of goods are recognised when the significant risks and rewards of ownership have been transferred to the buyer. Revenue from the provision of services is recognised in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work performed.

Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Grants payable by the Australian Government are recognised as revenue when the Agency gains control of the underlying assets. Where grants are reciprocal, revenue is recognised as performance occurs under the grant.

Appropriations, whether recurrent or capital, are recognised as revenues in the period in which the Agency gains control of the appropriated funds. Except for any amounts identified as carried forward in Note 18.3, control arises in the period of appropriation.

Income is recognised in the Statement of Comprehensive Income when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

Net assets received under a restructuring of administrative arrangements are designated as contributions by owners and adjusted directly against equity. Net assets relinquished are designated as distributions to owners. Net assets transferred are initially recognised at the amounts at which they were recognised by the transferring agency immediately prior to the transfer. There were no assets received or relinquished during the year.

2.8 Transactions by the Government as Owner – Restructuring of Administrative Arrangements


(e) Contributions Received

(f) Other Revenue

2.10 Expenses from Transactions

(a) Employee Benefits

(b) Depreciation and Amortisation

Vehicles 5 years

Plant and equipment 2-20 years

Medical equipment 4-20 years

Buildings 40-50 years

Employee benefits include, where applicable, entitlements to wages and salaries, annual leave, sick leave, long service leave, superannuation and any other post-employment benefits.

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably.

Other revenue is primarily the recovery of costs incurred and is recognised when an increase in future economic benefits relating to an increase in an asset or a decrease of a liability has arisen that can be reliably measured.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the Agency obtains control of the asset, it is probable that future economic benefits comprising the contribution will flow to the Agency and the amount can be measured reliably. However, where the contribution received is from another government agency as a consequence of restructuring of administrative arrangements, where they are recognised as contributions by owners directly within equity. In these circumstances, book values from the transferor agency have been used.

Services received free of charge by the Agency, are recognised as income when a fair value can be reliably determined and at the time the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

All applicable non-financial assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their service potential. Land, being an asset with an unlimited useful life, is not depreciated.

Depreciation is provided for on a straight line basis, using rates which are reviewed annually. Major depreciation periods are:


Software 3-5 years

Long-Term Community Housing Program Grant 11 years

(c) Grants and Subsidies

·

·

(d) Borrowing Costs

·

·

·

·

·

(e) Contributions Provided

(f) Other Expenses

Borrowing costs include:

interest on bank overdrafts and short-term and long-term borrowings

unwinding of discounting provisions

Other expenses are recognised when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be reliably measured.

amortisation of discounts or premiums related to borrowings

amortisation of ancillary costs incurred in connection with the arrangement of borrowings and

finance lease charges.

Contributions provided free of charge by the Agency, to another entity, are recognised as an expense when fair value can be reliably determined. No contributions were provided free of charge during 2011-2012.

Depreciation of Housing Tasmania’s rental dwellings and community rental stock is based on a useful life of 50 years in accordance with the State Housing Authority’s Accounting Policies and Reporting Framework (March 1995). All other buildings are depreciated over their remaining useful life.

All intangible assets having a limited useful life are systematically amortised over their useful lives reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by the Agency.Major amortisation periods are:

Grant and Subsidies expenditure is recognised to the extent that:

the services required to be performed by the grantee have been performed or

the grant eligibility criteria have been satisfied.

A liability is recorded when the Agency has a binding agreement to make the grants but services have not been performed or criteria satisfied. Where grant monies are paid in advance of performance or eligibility, a prepayment is recognised.

All borrowing costs are expensed as incurred using the effective interest method.


2.11 Other Economic Flows Included in Net Result

(a) Gain/(Loss) on Sale of Non-Financial Assets

(b) Impairment – Financial Assets

(c) Impairment – Non-Financial Assets

All impairment losses are recognised in the Statement of Comprehensive Income.

In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extend that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.

Gains or losses from the sale of non-financial assets are recognised when control of the assets has passed to the buyer.

Financial assets are assessed at each reporting date to determine whether there is any objective evidence that there are any financial assets that are impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

An impairment loss, in respect of a financial asset measured at amortised cost, is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.


An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost the reversal is recognised in the Statement of Comprehensive Income.

All non-financial assets are assessed to determine whether any impairment exists. Impairment exists when the recoverable amount of an asset is less than its carrying amount. Recoverable amount is the

higher of fair value less costs to sell and value in use. The Agency’s assets are not used for the purpose

of generating cash flows; therefore value in use is based on depreciated replacement cost where the asset would be replaced if deprived of it.


(d) Other Gains/(Losses) From Other Economic Flows

2.12 Assets

(a) Cash and Deposits

(b) Receivables

(c) Loan Advances

(d) Equity Investments

(e) Other Financial Assets

(f) Inventories

Other gains/(losses) from other economic flows includes gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present values of

the long service leave liability due to changes in the bond interest rate.

Assets are recognised in the Statement of Financial Position when it is probable that the future economic benefits will flow to the Agency and the asset has a cost or value that can be measured reliably.

Cash means notes, coins, any deposits held at call with a bank or financial institution, as well as funds held in the Special Deposits and Trust Fund, being short-term of three months or less and highly liquid. Deposits are recognised at amortised cost, being their face value.

Receivables are recognised at amortised cost, less any impairment losses, however, due to the short settlement period, receivables are not discounted back to their present value.

Loan advances are borrowings provided to clients for the purchase of homes and are recognised at the balance of the outstanding principal less any impairment losses.

Equity investments are recorded at fair value with any changes in the fair value being recorded as income or expenses in the Statement of Comprehensive Income. Equity investments are not depreciated.

Other financial assets are recorded at fair value.

Inventories held for distribution are valued at cost adjusted, when applicable, for any loss of service potential. Inventories acquired for no cost or nominal consideration are valued at current replacement cost. Inventories held for resale are valued at cost.


(g) Assets Held for Sale

(h) Property, Plant, Equipment and Infrastructure

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Agency and its costs can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of day-to-day servicing of property, plant and equipment are recognised in the Statement of Comprehensive Income as incurred.

(iii) Asset Recognition Threshold

The asset capitalisation threshold for tangible assets adopted by the Agency is $10 000. Assets valued at less than $10 000 (or $50 000 for intangible assets) are charged to the Statement of Comprehensive Income in the year of purchase (other than where they form part of a group of similar items which are material in total).

Cost includes expenditure that is directly attributable to the acquisition of the asset. The costs of self‑constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

(ii) Subsequent Costs

Assets held for sale (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance with the Agency’s accounting policies. Thereafter the assets (or disposal group) are measured at the lower of carrying amount and fair value less costs to sell.

(i) Valuation Basis

Land, buildings, infrastructure, heritage and cultural assets and other long-lived assets are recorded at fair value less accumulated depreciation. All other non-current physical assets, including work in progress, are recorded at historic cost less accumulated depreciation and accumulated impairment losses.


(i) Intangibles

·

·

(j) Other Assets

Other assets are recorded at fair value and include prepayments.

2.13 Liabilities

(a) Payables

Intangible assets held by the Agency are valued at fair value less any subsequent accumulated amortisation and any subsequent accumulated impairment losses where an active market exists. Where no active market exists, intangible assets held by the Agency are valued at cost less any subsequent accumulated amortisation and any subsequent accumulated impairment losses. The asset capitalisation threshold for intangible assets adopted by the Agency is $50 000.

it is probable that an expected future benefit attributable to the asset will flow to the Agency and

the cost of the asset can be reliably measured.

(iv) Revaluations

The Agency’s land and building assets (excluding Housing Tasmania’s rental properties) were revalued independently by Opteon Pty Ltd (formally known as Brothers and Newton Pty Ltd) as at 30 June 2012 using adjustment indices based on Australian Bureau of Statistics statistical data, Real Estate Institute of Tasmania median house price data, Rawlinsons Index of Construction cost estimates and own sourced research data from the Land Information Systems Tasmania database. Housing Tasmania land and

building assets are revalued annually as at 31 October using a mix of onsite revaluations and suburb based indices adjustments. These annual revaluations are provided by the Valuer-General of Tasmania.

An intangible asset is recognised where:

Liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably.

Payables, including goods received and services incurred but not yet invoiced, are recognised at amortised cost, which due to the short settlement period, equates to face value, when the Agency becomes obliged to make future payments as a result of a purchase of assets or services.


(b) Interest Bearing Liabilities

(c) Provisions

(d) Employee Benefits

(e) Superannuation

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an expense when they fall due.

Bank loans and other loans are initially measured at fair value, net of transaction costs. Bank loans and other loans are subsequently measured at amortised cost using the effective interest rate method, with interest expense recognised on an effective yield basis.

Liabilities for wages and salaries and annual leave are recognised when an employee becomes entitled to receive a benefit. Those liabilities expected to be realised within 12 months are measured at the amount expected to be paid. Other employee entitlements are measured as the present value of the benefit at 30 June 2012, where the impact of discounting is material, and at the amount expected to be paid if discounting is not material.

A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

(i) Defined Contribution Plans

The effective interest rate method is a method of calculating the amortised cost of a financial liability and 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.

A provision arises if, as a result of a past event, the Agency has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and the risks specific to the liability. Any right to reimbursement relating to some or all of the provision is recognised as an asset when it is virtually certain that the reimbursement will be received.


(f) Other Liabilities

(ii) Defined Benefit PlansA defined benefit plan is a post‑employment benefit plan other than a defined contribution plan.

The Agency makes contributions in respect of certain employees of Ambulance Tasmania to the Tasmanian Ambulance Service Superannuation Scheme being a defined benefit scheme where members receive lump sum benefits on resignation, retirement, death or invalidity. The scheme is closed to new

members. The Agency’s superannuation obligations in respect of this scheme are recognised at the latest actuarial assessment of the member’s entitlements, net of scheme assets. Actuarial gains and losses in respect of this scheme are recognised in the Statement of Comprehensive Income.

With the exception noted below, the Director of Housing does not recognise a liability for the accruing superannuation benefits of Service employees. This liability is held centrally and is recognised within the Finance‑General Division of the Department of Treasury and Finance.

The Director of Housing’s superannuation obligations, in respect of the contributory service of current and past government employees, are recognised at the latest actuarial assessment of the members’

entitlements, net of scheme assets. The valuation is determined by discounting to present value, the gross

benefit payments at a current, market-determined, risk-adjusted discount rate appropriate to the respective plan.

Actuarial gains or losses arising from the actuarial revaluation of superannuation liabilities are recognised in the Statement of Comprehensive Income.

Other liabilities and other financial liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources embodying economic benefits will result from the settlement of

a present obligation and the amount at which the settlement will take place can be measured reliably. Other liabilities include revenue received in advance and on costs associated with employee benefits. As

a consequence of the Treasurer's decision to cease levying payroll tax on agencies from 1 October 2012, other liabilities no longer includes a component relating to a provision for payroll tax associated with

employee leave entitlement provisions. Revenue received in advance is measured at amortised cost. On-costs associated with employee benefits expected to be realised within 12 months are measured at the amount expected to be paid. Other on-costs associated with employee benefits are measured at the present value of the cost at 30 June 2012, where the impact of discounting is material, and at the amount expected to be paid if discounting is not material.


2.14 Leases

2.15 Judgements and Assumptions

Judgements made by the Agency that have significant effects on the Financial Statements are disclosed in the relevant notes to the Financial Statements. In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following notes:

· 2.12(h) and 11.7(a) Property, Plant Equipment and Infrastructure and

· 2.10(b) Depreciation and Amortisation

· 2.13(e) and 12.4 Superannuation.

These judgements relate to adoption of the recommendations by the valuer, Opteon Pty Ltd, in respect of land and building valuations and the Valuer-General for valuation of the Housing Tasmania rental properties and the recommendations of the State Actuary in respect of the Superannuation liabilities.

The Treasurer has announced the policy decision to cease levying payroll tax on agencies from 1 October 2012. This decision has been factored into the calculation of employee entitlement provisions and the associated on cost liabilities as at 30 June have been stated, exclusive of payroll tax.

The Agency has entered into a number of operating lease agreements for property, plant and equipment, where the lessors effectively retain all the risks and benefits incidental to ownership of the items leased. Equal instalments of lease payments are charged to the Statement of Comprehensive Income over the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

The Agency is prohibited by Treasurer’s Instruction 502 Leases from holding finance leases.

In the application of Australian Accounting Standards, the Agency is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The Agency has made no other judgements or assumptions that may cause a material adjustment to the carrying amounts of assets and liabilities.


2.16 Foreign Currency

2.17 Comparative Figures

2.18 Budget Information

2.19 Rounding

2.20 Departmental Taxation

2.21 Goods and Services Tax

Budget information refers to original estimates as disclosed in the 2011-2012 Budget Papers and is not subject to audit.

All amounts in the Financial Statements have been rounded to the nearest thousand dollars, unless otherwise stated. Where the result of expressing amounts to the nearest thousand dollars would result in an amount of zero, the financial statement will contain a note expressing the amount to the nearest whole dollar.

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

Revenue, expenses and assets are recognised net of the amount of GST, except where the GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST. The net amount recoverable, or payable, to the ATO is recognised as an asset or liability within the Statement of Financial Position.

In the Statement of Cash Flows, the GST component of cash flows arising from operating, investing or financing activities which is recoverable from, or payable to, the Australian Taxation Office is, in accordance with the Australian Accounting Standards, classified as operating cash flows.

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date.

Comparative figures have been adjusted to reflect any changes in accounting policy or the adoption of new standards. Details of the impact of changes in accounting policy on comparative figures and amendments to comparative figures arising from correction of an error are disclosed at Note 2.5.

Where amounts have been reclassified within the Financial Statements, the comparative statements have been restated.

Restructures of Outputs within the Agency (internal restructures) that do not affect the results shown on the face of the Financial Statements are reflected in the comparatives in the Output Schedule at Notes 3.1 and 3.2.


Note 3 Agency Output Schedules3.1 Output Group Information

2012Budget

$'000

2012Actual

$'000

2011Actual

$'000



Revenue from appropriation 784 186 819 092 814 634

Grants 65 000 63 600 59 742


Interest income 758 533 935

Contributions received 0 0 90

Other revenue 18 903 23 483 20 087

Total Revenue and Other Income from Transactions 944 036 996 272 972 826


Employee entitlements

Salaries and wages 564 398 583 355 561 663

Other employee related expenses 12 624 12 184 14 682

Superannuation expenses 53 057 70 501 59 866

Depreciation and amortisation 24 269 26 557 25 710

Supplies and consumables

Consultants 1 750 1 030 1 886

Maintenance and property services 30 491 27 499 28 956

Communications 3 584 4 925 4 491

Information technology 11 100 8 827 10 428

Travel and transport 7 808 10 178 9 537

Medical, surgical and pharmacy supplies 158 151 162 034 164 343

Advertising and promotion 102 118 145

Output Group 1 – Acute Health Services

Budget information refers to original estimates and has not been subject to audit.

Comparative information has not been restated for external administrative restructures.


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Other supplies and consumables 60 662 49 797 54 923

Grants and subsidies 1 465 2 995 934

Borrowing costs 0 2 0

Other expenses 40 785 43 995 49 093

Total Expenses from Transactions 970 246 1 003 997 986 657



Net gain/(loss) on sale of non financial assets 40 47 85

0 ( 1 137) ( 72)

Net actuarial gains/(losses) of superannuation defined benefit plans 0 ( 8 902) ( 2 505)

Total Other Economic Flows Included in Net Result 40 ( 9 992) ( 2 492)

Net Result from Continuing Operations ( 26 170) ( 17 717) ( 16 323)


Changes in physical asset revaluation reserve 620 13 056 17 752

Total Other Economic Flows - Other Non-Owner Changes in Equity 620 13 056 17 752

Comprehensive Result ( 25 550) ( 4 661) 1 429

Expense by Output

1.1 Clinical Support Services 45 871 46 180 44 685

1.2 Medical Services 381 003 391 352 379 892

1.3 Surgical Services 238 311 245 598 252 067

1.4 Women's and Children's Services 109 454 113 858 112 240

1.5 Diagnostic and Pharmacy Services 135 483 144 947 141 169

1.6 Ambulance Services 57 770 59 651 54 423

1.7 Forensic Medicine Services 2 354 2 411 2 180

Total 970 246 1 003 997 986 656

Net Assets

Total assets deployed for Acute Health Services 690 499 579 977

Total liabilities incurred for Acute Health Services ( 202 746) ( 179 965)

Net Assets Deployed for Acute Health Services 487 753 400 012



2012Budget

$'000

2012Actual

$'000

2011Actual

$'000




Grants 0 0 0


Interest income 6 0 6

Contributions received 0 0 0

Other revenue 4 080 5 411 4 625





Other employee related expenses 4 773 3 665 5 858




Consultants 671 615 788





Medical, surgical pharmacy supplies 18 807 16 876 17 470



Grants and subsidies 58 392 61 885 50 166

Other expenses 19 758 17 757 19 921

Total Expenses from Transactions 406 617 399 735 389 256


Output Group 2 – Community Health Services


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000


Net gain/(loss) on sale of non financial assets 0 ( 2 376) 17

0 ( 121) ( 58)

Total Other Economic Flows Included in Net Results 0 ( 2 497) ( 41)



Changes in physical asset revaluation reserve 30 919 3 568 6 140

Total Other Economic Flows - Other Non-Owner Changes in Equity 30 919 3 568 6 140

Comprehensive Result 24 058 ( 195) 4 764

Expense by Output

2.1 Primary Health Services 191 260 191 378 179 511

2.2 Oral Health Services 26 317 27 555 26 674

2.3 Population Health Services 39 600 36 820 37 023

2.4 Mental Health Services 149 440 143 982 146 048

Total 406 617 399 735 389 256

Net Assets

Total assets deployed for Community Health Services 244 559 235 531

Total liabilities incurred for Community Health Services ( 67 073) ( 62 919)

Net Assets Deployed for Community Health Services 177 486 172 612



2012Budget

$'000

2012Actual

$'000

2011Actual

$'000




Grants 0 0 0


Interest income 607 237 1 403

Other revenue ( 2 239) 1 682 2 898





Other employee related expenses 1 982 552 613




Consultants 1 022 568 590





Medical, surgical pharmacy supplies 318 74 71




Borrowing costs 9 623 9 624 9 913

Other expenses 8 762 7 041 9 593



Output Group 3 – Human Services


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000


Net gain/(loss) on sale of non financial assets ( 15 415) ( 16 726) ( 27 396)

0 ( 810) ( 780)

Net actuarial gains/(losses) of superannuation defined benefit plans 0 ( 5 019) 1 270

Other gains/(losses) from other economic flows 0 1 134 0

Total Other Economic Flows Included in Net Results ( 15 415) ( 21 421) ( 26 906)



Changes in physical asset revaluation reserve 21 897 ( 3 363) 202 774

Total Other Economic Flows - Other Non-Owner Changes in Equity 21 897 ( 3 363) 202 774

Comprehensive Result ( 16 205) ( 98 171) 159 791

Expense by Output

3.1 Child and Family Service 96 075 107 330 115 820

3.2 Youth Justice Services 14 762 15 184 14 970

3.3 Disability Services 163 152 164 628 148 205

3.4 Housing Services 151 477 201 644 156 153

Total 425 466 488 786 435 148

Net Assets

Total assets deployed for Human Services 2 129 258 2 192 179

Total liabilities incurred for Human Services ( 260 065) ( 260 867)

Net Assets Deployed for Human Services 1 869 193 1 931 312



2012Budget

$'000

2012Actual

$'000

2011Actual

$'000



Revenue from Appropriation 753 802 752

Sales of Goods and Services 3 15 16

Other Revenue 1 0 0

Total Revenue and Other Income from Transactions 757 817 768



Salaries and wages 522 491 473

Other employee related expenses 10 4 19

Superannuation expenses 56 60 51

Depreciation and amortisation 0 1 1


Consultants 2 30 35

Maintenance and property services 57 64 60

Communications 10 16 15

Information technology 6 6 9

Travel and transport 29 23 42



Other supplies and consumables 32 71 35

Grants and subsidies 1 0 0

Other expenses 37 37 41

Total Expenses from Transactions 764 803 782

Net Result from Transactions (Net Operating Balance) ( 7) 14 ( 14)

Output Group 4 – Independent Children’s Review


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000


Net gain/(loss) on sale of non financial assets 0 0 0

0 0 0

Total other Economic Flows Included in Net Results 0 0 0

Net result from Continuing Operations ( 7) 14 ( 14)


Changes in physical asset revaluation reserve 0 0 0

Total Other Economic Flows - Other Non-Owner Changes in Equity 0 0 0

Comprehensive Result ( 7) 14 ( 14)

Expense by Output

4.1 Office of the Commissioner for Children 764 803 784

Total 764 803 784

Net Liabilities

Total assets deployed for Independent Children’s Review 41 61

Total liabilities incurred for Independent Children’s Review ( 120) ( 130)

Net Liabilities Deployed for Independent Children’s Review ( 79) ( 69)

2012Budget

$'000

2012Actual

$'000

2011Actual

$'000




Sales of goods and services 3 891 30 270

Other revenue 3 700 8 975 2 306


Output Group – Capital Investment Program



2012Budget

$'000

2012Actual

$'000

2011Actual

$'000



Salaries and wages 230 568 1 121

Other employee related expenses 0 8 11




Maintenance and property services 0 486 177


Information technology 0 171 27




Other supplies and consumables 730 1 685 1 625

Grants and subsidies 0 1 862 800

Other expenses 1 888 51 56


Net Result from Transactions (Net Operating Balance) 118 591 71 689 144 047


Net gain/(loss) on sale of non financial assets 24 600 12 277 27 000

Other gains/(losses) from other economic flows 0 ( 1 833) 0

Total Other Economic Flows Included in Net Results 24 600 10 444 27 000







2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Expense by Output

Capital Investment Program 2 857 5 123 4 379

Total 2 857 5 123 4 379

Net Assets

Total assets deployed for Capital Investment Program 0 0

Total liabilities incurred for Capital Investment Program 0 0

Net Assets Deployed for Output Capital Investment Program 0 0

2012Budget

$'000

2012Actual

$'000

2011Actual

$'000




Sales of goods and services 0 62 45

Other revenue 0 3 2




Salaries and wages 0 2 465 1 847

Other employee related expenses 0 ( 133) ( 399)


Depreciation and amortisation 0 209 235

Output Group – Special Capital Investment Funds


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000



Maintenance and property services 0 2 499 1 826


Information technology 1 071 3 183 763




Other supplies and consumables 0 1 056 570


Other expenses 0 175 131




Net gain/(loss) on sale of non financial assets 0 ( 5) 0

Total Other Economic Flows Included in Net Results 0 ( 5) 0






Expense by Output

Special Capital Investment Funds 13 249 12 208 9 526

Total 13 249 12 208 9 526

Net Assets

Total assets deployed for Special Capital Investment Funds 0 0

Total liabilities incurred for Special Capital Investment Funds 0 0

Net Assets Deployed for Output Special Capital Investment Funds 0 0


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Total Comprehensive Result of Output Groups

Acute Health Services ( 25 550) ( 4 661) 1 429

Community Health Services 24 058 ( 195) 4 764

Human Services ( 16 205) ( 98 171) 159 791

Independent Children’s Review ( 7) 14 ( 14)

Capital Investment Program 143 191 82 133 171 047

Special Capital Investment Funds 95 044 50 779 43 498

Total Comprehensive Result 220 531 29 899 380 515


2012Actual

$'000

2011Actual

$'000

Total Net Assets Deployed for Output Groups

Acute Health Services 487 753 400 012

Community Health Services 177 486 172 612

Human Services 1 869 193 1 931 312

Independent Children’s Review ( 79) ( 69)

Total Net Assets Deployed 2 534 353 2 503 867

Net Assets 2 534 353 2 503 867

3.3 Reconciliation of Total Output Groups Net Assets to Statement of Financial Position

3.2 Reconciliation of Total Output Groups Comprehensive Result to Statement of Comprehensive Income


3.4 Administered Output Schedule

2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Administered Revenue and Other Income from Transactions


Grants 36 680 23 902 25 813

Sales of goods and services 0 21 577 20 007

Other revenue 0 0 313


Administered Expenses from Transactions

Grants and transfer payments 24 957 35 720 38 734

Transfer to the consolidated fund 36 600 46 057 44 020

Total Administered Expenses from Transactions 61 557 81 777 82 754

( 1) ( 1 439) 929

( 1) ( 1 439) 929

Total Administered Comprehensive Result ( 1) ( 1 439) 929

Administered Expense

Administered payments 61 557 81 777 82 754

Total 61 557 81 777 82 754

Administered Financial Assets

Receivables 2 489 3 988 4 446

Total Administered Financial Assets 2 489 3 988 4 446

Total Administered Assets 2 489 3 988 4 446

Administered Liabilities

Payables 6 036 8 041 7 060

Total Administered Liabilities 6 036 8 041 7 060

Total Administered Net Liabilities ( 3 547) ( 4 053) ( 2 614)

Administered Net Liabilities

Total administered assets deployed for Administered Payments 3 988 4 446

Total administered liabilities incurred for Administered Payments ( 8 041) ( 7 060)

( 4 053) ( 2 614)

Administered Net Result from Transactions (Net Operating Balance)

Administered Net Liabilities Deployed for Administered Payments

Output Group 1 – Administered Payments

Budget information refers to original estimates and has not been subject to audit.Comparative information has not been restated for external administrative restructures.

Administered Net Operating Result from Continuing Operations


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Total Administered Net Result ( 1) ( 1 439) 929

Net Surplus (deficit) ( 1) ( 1 439) 929

2012Actual

$'000

2011Actual

$'000

Total Administered Net Assets Deployed ( 4 053) ( 2 614)

Administered Net Assets ( 4 053) ( 2 614)

StateFunds

AustralianGovernment

Funds

StateFunds

AustralianGovernment

Funds2012

Actual$'000

2012Actual

$'000

2011Actual

$'000

2011Actual

$'000

Specific Purpose Payments

Disability Services 119 595 29 537 107 257 32 468

Affordable Housing 0 32 569 0 33 545

Health 0 279 619 500 275 740

National Partnership Payments

Health Services 14 751 61 877 11 756 51 723

Housing 3 933 12 756 2 060 6 591

Community Services 1 824 13 371 27 074 34 921

Commonwealth Own Purpose Expenditures

Mersey 9 995 63 600 9 264 60 000

Other 9 976 21 970 45 093 49 947

Housing 0 16 029 0 69 548

Total 160 074 531 328 203 004 614 483

Australian Government Nation Building and Economic Stimulus Package

Note 4 Expenditure Under Australian Government Funding Arrangements

3.5 Reconciliation of Total Administered Output Groups Comprehensive Result to Administered Statement of Changes in Equity

3.6 Reconciliation of Total Administered Groups' Net Assets to Schedule of Administered Assets and Liabilities


5.1 Statement of Comprehensive Income

NoteBudget

$'000Actual

$'000Variance

$'000Variance

%

Appropriation revenue - recurrent (a) 1 488 161 1 530 234 42 073 2.8

(b) 480 9 768 9 288 1935.0

Sales of goods and services (c) 175 942 185 868 9 926 5.6

Other revenue (d) 24 445 39 554 15 109 61.8

Employee benefits (e) 964 094 1 002 020 ( 37 926) (3.9)

Depreciation and amortisation (f) 51 857 61 044 ( 9 187) (17.7)

Supplies and consumables (g) 446 807 462 719 ( 15 912) (3.6)

Grants and subsidies (h) 275 588 306 187 ( 30 599) (11.1)

(i) 112 636 57 673 54 963 48.8

Revenue from Special Capital Investment Funds (j) 95 044 49 678 45 366 47.7

Net gain/(loss) on non-financial assets (k) 9 225 ( 6 783) ( 16 008) (173.5)

(l) 0 ( 13 921) ( 13 921) n/a

The following are brief explanations of material variances between budget estimates and actual outcomes. Variances are considered material where the variance exceeds the greater of 10 per cent of Budget estimate or $8 000 000.

The Australian Government Nation Building and Economic Stimulus Package was designed to stimulate the economy with the Australian Government funding projects that boost local infrastructure and support jobs. This funded new houses through direct investment and assistance of the social housing sector and also urgent maintenance to upgrade social houses. The funding was received in two stages.

Appropriation revenue - works and services (continuing

operations)

Net actuarial gain/(loss) of superannuation defined benefit plans

Commonwealth Own Purpose Expenditure is funding paid directly from the Australian Government to the states and territories for the provision of services identified as a priority by the Australian Government.

Appropriation revenue - works and services

(non-operational capital funding)

Specific Purpose Payments (SPPs) are payments from the Australian Government to the governments of the states and territories arising from national agreements that set out the government's agreed objectives and outcomes, outputs, roles and responsibilities and performance indicators for each sector. SPPs are distributed to the states on the basis of their population shares.

National Partnership Payments (NPPs) are similar to SPPs but are provided for the purpose of the delivery of specified projects, facilitate reforms or reward jurisdictions that deliver nationally significant reforms.

Note 5 Explanations of Material Variances between Budget and Actual Outcomes


Notes to Statement of Comprehensive Income Variances

(c) The increase in sales of goods and services predominately relates to above budgeted revenue for prostheses, private patients, Department of Veteran Affairs and Pharmaceutical Benefit Scheme.

(b) The increase in appropriation revenue – works and services (continuing operations) predominately relates to additional funding provided for increased salary and wages and consultant costs along with funding for the outsourced construction of the Patient Support Centre in Launceston by the Cancer Council of Tasmania.

(a) The increase in appropriation revenue - recurrent predominately relates to additional funding provided to meet rising cost pressures in the health system and additional funding for Australian Government programs.

(d) The increase in other revenue predominantly relates to salary and wages, workers compensation and other recoveries that were not budgeted.

(e) The increase in employee benefits predominantly reflects the payment of Targeted Voluntary Redundancy Arrangements, including the payment of staff employed via a third party.

(f) The original budget amount for depreciation and amortisation did not accurately reflect the 30 June 2011 balance of $59.5 million.

(g) The increase in supplies and consumables is predominately the result of increased costs associated with property services, medical and surgical services and information technology.

(l) The net loss on superannuation defined benefits plans represents the actuarial loss that was unbudgeted.

(j) The reduction in Revenue from Special Capital Funds predominantly reflects delays in projects being progressed, primarily relating to the Royal Hobart Hospital $100 million due to the inability to occupy leased space in the Wellington Centre and the Housing Fund due to delays in announcing the round four proponents for the National Rental Affordability Scheme.

(k) The net gain(loss) on non-financial assets represents the gain(loss) on disposal of physical assets offset by the impairment of non-financial assets. At the time of budgeting it was anticipated that disposals would generate net gains for the Agency.

(h) The increase in grants and subsidies represents the finalised activity under the National Building Economic Stimulus Program. The grants are for the development of social housing, where title to the properties are held by the non-government sector.

(i) The reduction in appropriation revenue - works and services (non-operational capital funding) reflects the delay in major projects including the RHH Redevelopment, the Launceston General

Hospital Acute Medical and Surgical Unit, the National Health and Hospitals Network Reform and Statewide Cancer Services.


5.2 Statement of Financial Position

NoteBudget

$'000Actual

$'000Variance

$'000Variance

%

Cash and deposits (a) 56 169 85 650 29 481 52.5

Property, plant and equipment (b) 2 991 396 2 898 600 ( 92 796) (3.1)

Payables (c) 27 823 38 760 ( 10 937) (39.3)

Employee benefits (d) 217 330 208 492 8 838 4.1

Superannuation (e) 15 036 29 228 ( 14 192) (94.4)

Other liabilities (f) 60 224 43 716 16 508 27.4

Notes to Statement of Financial Position Variances

(d) The reduction in employee benefits primarily relates to a reduction in the discount rate in calculating the accrual and as a consequence of the Treasurer's decision to cease levying payroll tax on agencies from 1 October 2012.

(b) The decrease in property, plant and equipment predominantly comprises a decrement in the revaluation of land and buildings and a reallocation of expenditure from work in progress to grants relating to social housing.

(c) and (f) The variance in payables and other liabilities is predominately a result of accrued expenses being reported against other liabilities in the Budget and reported as a payable in the Actual.

(a) The original budget amount for cash and deposits did not accurately reflect the 30 June 2011 balance which has resulted in the variance above.

(e) The variance in superannuation is due to an unbudgeted actuarial loss on the superannuation defined benefit plans.


5.3 Statement of Cash Flows

NoteBudget

$'000Actual

$'000Variance

$'000Variance

%

Appropriation receipts - recurrent (a) 1 488 161 1 530 234 42 073 2.8

Sales of goods and services (b) 174 518 187 139 12 621 7.2

GST receipts (c) 60 061 87 293 27 232 45.3

Other cash receipts (d) 28 075 41 306 13 231 47.1

Employee benefits (e) ( 855 505) ( 883 839) ( 28 334) (3.3)

GST payments (f) ( 60 060) ( 85 912) ( 25 852) (43.0)

Grants and transfer payments (g) ( 275 588) ( 260 833) 14 755 5.4

Supplies and consumables (h) ( 447 032) ( 469 113) ( 22 081) (4.9)

Other cash payments (i) ( 70 650) ( 79 467) ( 8 817) (12.5)

(j) 112 636 60 945 ( 51 691) (45.9)

(k) 95 044 50 222 ( 44 822) (47.2)

Payment for acquisition of non-financial assets (l) ( 238 463) ( 141 479) 96 984 40.7

Notes to Statement of Cash Flows Variances

(c) The increase in GST receipts reflects an increase in the level of sales of goods and services as well as changes in the level of GST able to be claimed back by Disability, Housing and Community Services.

(d) The increase in other cash receipts predominantly relates to salary and wages, workers compensation and other recoveries that were not budgeted.

(a) The increase in appropriation revenue - recurrent predominately relates to additional funding provided to meet rising cost pressures in the health system and additional funding for Australian Government programs.

(b) The increase in sales of goods and services predominately relates to above budgeted revenue for prostheses, private patients, Department of Veteran Affairs, Pharmaceutical Benefits Scheme and miscellaneous revenue.

(e) The increase in employee benefits predominantly reflects the payment of Targeted Voluntary Redundancy Arrangements, including the associated leave payout and the payment of staff employed via a third party.

Receipts from non-operational capital funding - works and

servicesReceipts from non-operational capital funding - Special Capital

Investment Funds


Note 6 Events Occurring After Balance Date

National Health Reform

Each THO is a statutory authority with a Governing Council established under the Act. Operational management for public hospitals has been devolved to the local level. This will mean a major shift in the way services are funded and delivered in Tasmania and will enable THOs to be the direct managers of public hospitals and to be held directly accountable for hospital performance.

The THOs replace the Area Health Services previously managed by the Department of Health and Human Services. This will have a significant impact on the quantum and type of expenditure managed by

the Agency and presented in its financial statements from 1 July 2012.

(g) The decrease in grants and transfer payments is a result of the full provision being included in the budget for the transfer to unit pricing within Disability Services. However, the grant payments were phased in during 2011-2012, with full implementation expected in 2012-2013.

National Health Reform was implemented in Tasmania on 1 July 2012 with the establishment of three Tasmanian Health Organisations (THOs) under the Tasmanian Health Organisation Act 2011 (the Act), which received Royal Assent on 22 December 2011.

There have been no events subsequent to the balance date which would have a material affect on the Department of Health and Human Services’ Financial Statements as at 30 June 2012.

(f) The increase in GST payments reflects an increase in the level of expenditure on operating costs.

(j) The reduction in receipts from non-operational capital funding - works and services reflects the delay in major projects including the Royal Hobart Hospital Redevelopment, the Launceston General Hospital Acute Medical and Surgical Unit, the National Health and Hospitals Network Reform and the Statewide Cancer Services.

(k) The reduction in receipts from non-operational capital funding - Special Capital Investment Funds predominantly reflects delays in projects being progressed, primarily relating to the Royal Hobart Hospital $100 million due to the inability to occupy leased space in the Wellington Centre and the Housing Fund due to delays in announcing the round four proponents for the National Rental Affordability Scheme.

(l) The reduction in payment for acquisition of non-financial assets is a result of the delays in the capital program.

(h) The increase in supplies and consumables is a result of increased costs incurred during the financial year, including additional consultancy and property costs within the capital program and increased medical and surgical costs.

(i) An increase in other cash payments reflects an increase in payroll tax and workers compensation premiums that were unbudgeted.


Total Agency

balance at30 June 2012

$'000

Transfers on 1 July 2012

$'000

Net Agency balance at 1 July 2012

$'000

Assets

Financial Assets

Cash and deposits 85 650 ( 29 552) 56 098

Receivables 22 783 ( 12 164) 10 619

Loan advances 4 567 0 4 567

Equity investments 4 623 0 4 623

Other financial assets 6 720 ( 997) 5 723

Non-Financial Assets 0

Inventories 13 832 ( 8 952) 4 880

Assets held for sale 6 093 0 6 093

Property, plant and equipment 0

Land and and buildings 2 837 468 0 2 837 468

Plant, medical, computer equipment and vehicles 61 132 ( 40 465) 20 667

Intangibles 16 399 0 16 399

Other assets 5 090 ( 2 247) 2 843

Total Assets 3 064 357 ( 94 377) 2 969 980

Income Statement

Balance Sheet

The most significant impact on the Agency is a substantial reduction in employee related expenditure and an increase in grants paid by the Agency to the THOs.

Under National Health Reforms, the majority of funding previously provided by the Australian Government under Health Specific Purpose Payments (SPP) is now provided directly to the THOs via accounts held in the National Pool. In 2011-2012, this funding was paid to the Agency by way of a recurrent appropriation. In 2012-2013 this funding will flow as a grant to the THOs.

Also, under the new administrative arrangements in place for 2012-2013, funding due to the Agency under National Partnership Agreements with the Australian Government and Commonwealth Own Purpose Expenditure will be paid as grants rather than by way of appropriation. This represents a substantial reduction in revenue from appropriation and an increase in grants received by the Agency.


Total Agency

balance at30 June 2012

$'000

Transfers on 1 July 2012

$'000

Net Agency balance at 1 July 2012

$'000

Liabilities

Payables 38 760 ( 11 142) 27 618

Interest bearing liabilities 209 808 0 209 808

Employee benefits 208 492 ( 149 009) 59 483

Superannuation 29 228 0 29 228

Other liabilities 43 716 ( 11 083) 32 633

Total Liabilities 530 004 ( 171 234) 358 770

Net Assets (Liabilities) 2 534 353 76 857 2 611 210

Equity

Contributed capital 6 094 0 6 094

Reserves 1 921 389 0 1 921 389

Accumulated funds 606 870 76 857 683 727

Total Equity 2 534 353 76 857 2 611 210

Note 7 Underlying Net Operating BalanceNon-operational capital funding is the income from transactions relating to funding for capital projects. This funding is classified as income from transactions and included in the net operating balance. However, the corresponding capital expenditure is not included in the calculation of the net operating balance. Accordingly, the net operating balance will portray a position that is better than the true underlying financial result.

For this reason, the net operating result is adjusted to remove the effects of funding for capital projects.


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000


Less Impact of Non-operational Ccapital Funding

Revenue from Government - works and services 112 636 57 673 125 055

Other revenue from Government 741 367 16 463


Total 208 421 107 718 184 645

Underlying Net Operating Balance ( 50 551) ( 67 609) ( 28 357)

Note 8 Income from Transactions

8.1 Grants

2012$'000

2011$'000


Grants from the Australian Government

Specific Grant - Mersey Community Hospital 63 600 59 742

Total 63 600 59 742

Total Revenue from Grants 63 600 59 742

Grants received from the Australian Government for the Mersey Community Hospital are provided on the condition that the Hospital operates as a public hospital in terms of an agreement between the

Crown and the Commonwealth of Australia commencing 1 July 2011 and ending 30 June 2014.


8.2 Sales of Goods and Services

2012$'000

2011$'000

Residential rent income 127 271 118 669

Less rebates ( 52 760) ( 49 120)

Net rentals received from Housing tenants 74 511 69 549

Commercial rent income 795 726

Income from purchase of dwellings 133 142

Pharmacy non-PBS 1 859 1 816

Prostheses 6 631 5 280

Inpatient, outpatient nursing home fees 43 805 41 420

Ambulance fees 5 516 4 413

Dental 2 316 2 152

PBS co-payments 853 252

PBS revenue from Medicare 3 515 1 221

Private Patient Scheme 22 350 18 535

Other client revenue 1 900 2 955

Hobart Private Hospital revenue 2 734 2 751

Other user charges 18 950 17 746

Total 185 868 168 958

8.3 Contributions Received

2012$'000

2011$'000

Fair value of assets assumed at no cost or for nominal consideration 0 90

Total 0 90


8.4 Other Revenue

2012$'000

2011$'000

Salaries and wages recoveries 7 930 6 945

Food recoveries 4 968 5 537

Multipurpose Centre recoveries 372 359

Workers compensation recoveries 7 868 2 825

Operating recoveries 12 974 9 877

Donations 2 698 2 071

Industry funds 2 744 2 304

Total 39 554 29 918

Note 9 Expenses from Transactions

9.1 Employee Benefits

2012$'000

2011$'000

Wages and salaries including FBT 790 188 776 467

Annual leave 61 743 54 755

Long service leave 5 658 7 039

Other post-employment benefits 8 096 11 366

Sick leave 26 604 25 330

Other employee expenses - other staff allowances 1 609 2 855

Superannuation expenses - defined contribution and benefits schemes 108 122 93 876

Total 1 002 020 971 688

Operating recoveries includes a $4 million contribution from the University of Tasmania in respect of the Northern Integrated Care Service project and $4 million of housing insurance and other recoveries.

Donations are made to the Agency from the general public and through fund raising efforts.


9.2 Depreciation and Amortisation

(a) Depreciation

2012$'000

2011$'000

Plant, equipment and vehicles 13 360 12 669

Buildings 46 840 46 261

Total 60 200 58 930

Superannuation expenses for defined benefits schemes relate to payments into the Superannuation Provision Account held centrally and recognised within the Finance‑General Division of the Department of Treasury and Finance. The amount of the payment is based on an employer contribution rate determined by the Treasurer, on the advice of the State Actuary. The current employer contribution is 12.3 per cent of salary.

Superannuation expenses relating to defined contribution schemes are paid directly to nominated superannuation funds at a rate of nine per cent of salary. In addition, agencies are also required to pay into the SPA a “gap” payment equivalent to 3.3 per cent of salary in respect of employees who are members of contribution schemes.


(b) Amortisation

2012$'000

2011$'000

Intangibles 817 510

Long-term community housing grant 27 27

Total 844 537

Total Depreciation and Amortisation 61 044 59 467

9.3 Supplies and Consumables

2012$'000

2011$'000

Consultants 2 424 4 146

Property services 74 813 72 711

Maintenance 43 894 46 571

Communications 8 735 8 598

Information technology 17 974 17 339

Travel and transport 19 268 20 047

Medical, surgical and pharmacy supplies 179 016 181 895

Advertising and promotion 1 152 1 131

Patient and client services 66 706 62 396

Leasing costs 3 240 4 129

Equipment and furniture 7 803 7 097

Administration 9 905 10 399

Food production costs 8 821 9 323

Other supplies and consumables 9 470 17 327

Service fees 9 131 7 832

Audit fees - financial audit 367 399

Total 462 719 471 341


9.4 Grants and Subsidies

2012$'000

2011$'000

Grant - Disability Services 116 061 98 156

Grant - Community Support 28 152 23 769

Grant - Mental Health 9 130 8 389

Grant - Disability Gateway Service 2 066 4 982

Grant - National Rental Affordability Scheme 1 236 5 288

Grant - other 93 592 35 941

Subsidies - Home and Community Care 40 629 36 422

Subsidies - Supported Accommodation Assistance 15 321 16 816

Subsidies - Private Rental Assistance Scheme 0 4 741

Total 306 187 234 504

The Agency provides supported accommodation assistance including crisis accommodation and related support for people who are experiencing homelessness or who are at imminent risk of becoming homeless and private rental support.

The Agency provides assistance for home and community care including community nursing, home help and maintenance, respite, personal care, transport, packages of care and delivered meals across the State.

The Agency provides grants for a range of services, including disability services including carer support, respite, accommodation support, information, advocacy, education, day support, specialist equipment, personal care and other individual support services. Grants are also provided for mental health, community support, palliative care, Disability Gateway Services and other community assistance grants.

Grants - other includes $48 million in Housing Grants, of which $44 million related to a reclassification of works in progress expenditure in relation to Non-Government Organisation Community Housing. It

also includes $6.5 million for community support and $15 million for personal care and individual support services.


9.5 Borrowing Costs

2012$'000

2011$'000

Interest Expense

Interest on bank overdrafts and loans 9 626 9 913

Total 9 626 9 913

9.6 Other Expenses

2012$'000

2011$'000

Salary on-costs 62 050 71 293

Tasmanian Risk Management Fund premium 6 006 7 006

Other 1 000 536

Total 69 056 78 835

Note 10 Other Economic Flows Included in Net Result

10.1 Net Gain/(Loss) on Non-Financial Assets

2012$'000

2011$'000

Impairment of non-financial assets ( 1 842) ( 2 731)

Net gain/(loss) on disposal of physical assets ( 4 941) 2 437

Total Net Gain/(Loss) on Non-Financial Assets ( 6 783) ( 294)

2012$'000

2011$'000

Impairment of loans and receivables ( 2 068) ( 910)

Total ( 2 068) ( 910)

The impairment of non-financial assets includes demolition of partially destroyed rental properties.

The impairment loss on receivables relates to an increase in the Provision for Impairment.

10.2 Net Gain/(Loss) on Financial Instruments and Statutory Receivables/Payables


10.3 Other Gains/(Losses) from Other Economic Flows

2012$'000

2011$'000

Net gain/(loss) on disposal of equity investments ( 699) 0

Total net gain/(loss) from other economic flows ( 699) 0

Note 11 Assets

11.1 Receivables

2012$'000

2011$'000

Receivables 25 671 23 630

Less: Provision for impairment ( 2 888) ( 2 173)

Total 22 783 21 457

Sales of goods and services (inclusive of GST) 22 783 21 457

Total 22 783 21 457

Settled within 12 months 22 783 21 457

Total 22 783 21 457

Reconciliation of Movement in Provision for Impairment of Receivables

2012$'000

2011$'000

Carrying Amount at 1 July 2 173 2 183

Amounts written off during the year ( 516) ( 843)

Amounts recovered during the year ( 837) ( 77)

Increase/(decrease) in provision recognised in profit or loss 2 068 910

Carrying Amount at 30 June 2 888 2 173

During 2011-2012, a portion of the accounts receivable ledger was assessed as being impaired. The impairment arose as a result of being long outstanding and assessed as being unlikely to be received or matters in dispute or being assessed for write-off. The amount of the impairment loss recognised is $2.888 million and has been deducted from receivables.


11.2 Loan Advances

2012$'000

2011$'000

Loan Advances

Loan sdvances 4 567 5 855

Provision for impairment 0 0

Total 4 567 5 855


Settled in more than 12 months 1 841 3 050

Total 4 567 5 855

11.3 Equity Investments2012$'000

2011$'000

Home share equity investment 4 680 3 152

Less: orovision for impairment ( 57) 0

Total 4 623 3 152


Total 4 623 3 152

11.4 Other Financial Assets

2012$'000

2011$'000

Accrued interest 47 175

Accrued revenue 1 113 2 734

Tax assets 5 560 7 106

Total 6 720 10 015


Total 6 720 10 015

During 2011-2012 no new loans were advanced and no loan advances were assessed as being impaired as considerable asset coverage exists against the loans.

During 2011-2012 a $57 000 impairment provision in respect of equity investment assets was provided. No impairment of this asset class was recognised in 2010-2011.

The Treasurer made a policy decision in 2010-2011 to restrict the type of accounts that were eligible to receive interest revenue on cash balances. As a result, only true trust accounts are now eligible to receive interest revenue.


11.5 Inventories

2012$'000

2011$'000

Pharmacy 8 447 7 042

Catering 595 551

Linen 2 576 1 970

General supplies 2 214 1 702

Total 13 832 11 265

Utilised within 12 months 13 832 11 265

Total 13 832 11 265

11.6 Assets Held for Sale

2012$'000

2011$'000

Land 3 047 4 186

Buildings 3 046 4 655

Less: accumulated depreciation 0 0

Total 6 093 8 841


Total 6 093 8 841

Inventories relate to stocks held for distribution at no or nominal consideration, predominantly at hospitals, in the ordinary course of operations as detailed above.

Department of Health and Human Services assets held for sale (excluding Director of Housing assets held for sale) include six properties identified as no longer meeting the needs of the Agency. The assets will be disposed of via public sale, offered to existing tenants or transferred to the local council. The properties are expected to be sold, at a value determined by the Valuer-General, over the coming year.

Assets held for sale include residential dwellings from the public housing portfolio identified for sale as part of the ongoing strategic asset management plan (SAMP), as well as land lots developed for sale under the Australian Government's Housing Affordability Fund (HAF). Where appropriate, existing dwellings

may be offered for sale to the sitting tenants supported by government programs such as the HomeShare Shared Equity Sales program or the Streets Ahead Assistance Program. All remaining properties are offered for sale through the open market, with all properties sold at a minimum of the market value as assessed by the Valuer-General.


11.7 Property, Plant and Equipment

(a) Carrying Amount

2012$'000

2011$'000

Land

Housing Tasmania’s land at fair value 650 675 696 048

Health and Human Services land at fair value 69 812 72 138

Less: Provision for impairment 0 0

Total 720 487 768 186

Buildings

Housing Tasmania’s rental dwellings at fair value 1 272 934 1 258 974

Less: accumulated depreciation ( 2 431) ( 687)

Less: provision for impairment 0 0

Total 1 270 503 1 258 287

Health and Human Services buildings at fair value 549 906 536 111

Less: accumulated depreciation ( 145) ( 1 168)


Total 549 761 534 943

Total Buildings 1 820 264 1 793 230

Leasehold Improvements

Mersey leasehold buildings at fair value 896 0

Less: accumulated depreciation ( 299) 0


Total 597 0

Assets sold during the year have been identified under the SAMP as either no longer meeting current client requirements or in the case of the residential land lots, as having been developed specifically for sale. All proceeds from the sale of these assets have been reinvested into the housing portfolio.


2012$'000

2011$'000

Community Housing Stock

At fair value 109 331 88 398

Less: accumulated amortisation ( 208) ( 13)


Total 109 123 88 385

Plant, Equipment and Vehicles

At cost 160 854 151 460

Less: accumulated depreciation ( 106 040) ( 95 999)


Total 54 814 55 461

Work in Progress

Housing Tasmania’s rental dwellings 24 196 60 849

Health and Human Services buildings 157 305 93 461

Mersey leasehold buildings 5 496 0


Total 193 315 161 773

Total Property, Plant and Equipment 2 898 600 2 867 035

(b) Reconciliation of Movements

The Agency’s land and building assets (excluding Housing Tasmania’s rental properties) were revalued independently by Opteon Pty Ltd (formally known as Brothers and Newton Pty Ltd) as at 30 June 2012 using adjustment indices based on Australian Bureau of Statistics statistical data, Real Estate Institute of Tasmania median house price data, Rawlinsons Index of construction cost estimates and own sourced research data from the Land Information Systems Tasmania database. Housing Tasmania land and

building assets are revalued annually as at 31 October using a mix of onsite revaluations and suburb based indices adjustments. These annual revaluations are provided by the Valuer-General of Tasmania.

Reconciliations of the carrying amounts of each class of Property, plant and equipment at the beginning and end of the current and previous financial year are set out below. Carrying value means the net amount after deducting accumulated depreciation and accumulated impairment losses.


2012

Land $'000

Buildings $'000

Community

HousingStock $'000

MerseyLeasehold

Improvements

$'000

Plant Equipment

and Vehicles

$'000

Works in Progress

$'000

Total $'000

Carrying value at 1 July 768 186 1 793 230 88 385 0 55 461 161 773 2 867 035

Additions 348 845 13 896 7 202 129 307 138 611

Disposals ( 4 480) ( 5 961) 0 0 ( 86) 0 ( 10 527)

( 44 716) 52 854 4 575 0 0 0 12 713

Impairment losses 0 ( 1 784) 0 0 0 0 ( 1 784)

Assets held for sale ( 1 935) ( 1 069) 0 0 0 0 ( 3 004)

Grants transfers 0 0 0 0 0 ( 44 244) ( 44 244)

Net transfers 3 084 26 859 17 981 0 5 597 ( 53 521) 0

0 ( 44 710) ( 1 831) ( 299) ( 13 360) 0 ( 60 200)

720 487 1 820 264 109 123 597 54 814 193 315 2 898 600

2011

Land $'000

Buildings $'000

Community

HousingStock $'000

MerseyLeasehold

Improvements

$'000

Plant Equipment

and Vehicles

$'000

Works in Progress

$'000

Total $'000

Carrying value at 1 July 607 872 1 715 326 47 152 0 52 154 63 875 2 486 379

Additions 8 409 38 358 0 0 11 064 177 824 235 655

Disposals ( 7 326) ( 6 073) 0 0 ( 11) 0 ( 13 410)

158 631 26 118 41 918 0 0 0 226 667

Impairment losses 0 ( 2 407) ( 65) 0 0 0 ( 2 472)

Assets held for sale ( 2 618) ( 4 236) 0 0 0 0 ( 6 854)

Net transfers 3 218 71 448 334 0 4 926 ( 79 926) 0

0 ( 45 304) ( 954) 0 ( 12 672) 0 ( 58 930)

768 186 1 793 230 88 385 0 55 461 161 773 2 867 035

Revaluation increments

(decrements)

Depreciation

Depreciation

Carrying value at 30 June


Revaluation increments

(decrements)


11.8 Intangibles

(a) Carrying Amount

2012$'000

2011$'000

Intangibles with a Finite Useful Life

Other non-current assets 10 399 9 734

Less: accumulated amortisation ( 2 624) ( 1 624)

Total 7 775 8 110

Intangibles with an Infinite Useful Life

Other non-current assets 300 300

Less: provision for impairment ( 300) ( 273)

Total 0 27

Capital work in progress 8 624 5 579

Total Intangibles 16 399 13 716


2012$'000

2011$'000


Intangible assets - purchases 665 8 503

Transfers - to computer equipment ( 183) 0

Work in progress at cost 3 045 ( 6 203)

Amortisation - intangible assets ( 844) ( 536)


Intangible assets with a finite useful life held by the Agency principally comprise computer software. In addition, the Agency had an intangible asset, being a long-term Community Housing Program Grant, which has been progressively recognised over a period of 11 years and is now finalised.


11.9 Other Assets

(a) Carrying Amount

2012$'000

2011$'000

Prepayments 5 090 5 377

Total 5 090 5 377

Utilised within 12 months 3 903 5 377

Utilised in more than 12 months 1 187 0

Total 5 090 5 377


2012$'000

2011$'000


Additions 5 090 5 377

Utilised ( 5 377) ( 2 491)


Note 12 Liabilities

12.1 Payables

2012$'000

2011$'000

Creditors 16 549 15 061

Accrued expenses 22 211 25 370

Total 38 760 40 431


Total 38 760 40 431

Prepayments are generally utilised within 12 months. An upfront contract payment of $1.5 million to Philips Healthcare Australia in respect of 10 years access to the Statewide Radiology Information and Picture Archive Communication Scheme (RISPACS) has been recognised as a prepayment asset.


12.2 Interest Bearing Liabilities

2012$'000

2011$'000

Loans from State Government 111 253 113 277

Loans from Australian Government 98 555 103 343

Total 209 808 216 620



Total 209 808 216 620

12.3 Employee Benefits

2012$'000

2011$'000

Accrued salaries 18 381 13 224



Sabbatical leave 3 728 2 953

Development leave, time off in lieu and state service accumulated leave scheme 5 069 4 942

Total 208 492 183 930



Total 208 492 183 930

12.4 Superannuation

(a) Type of Plan

The increase in employee benefits, notwithstanding the reduction in numbers of employees, has occurred due to the reduction in market interest rates and correspondingly the rate used for discounting employee leave entitlements.

Tasmanian Ambulance Service Superannuation Scheme

The Tasmanian Ambulance Service Superannuation Scheme (TASSS) balances reported are provided in respect of those employees who are defined benefit members.


(b) Superannuation Liability

2012$'000

2011$'000

2012$'000

2011$'000

2012$'000

2011$'000

Present value of gross liability 50 901 40 658 17 402 12 468 68 303 53 126

Fair value of plan assets ( 39 075) ( 37 481) 0 0 ( 39 075) ( 37 481)

Total 11 826 3 177 17 402 12 468 29 228 15 645

Present value of unfunded liability 11 826 3 177 17 402 12 468 29 228 15 645

(Surplus)/Deficit 11 826 3 177 17 402 12 468 29 228 15 645

Net actuarial gains not recognised 0 0 0 0 0 0

Restrictions on assets recognised 0 0 0 0 0 0

Total 0 0 0 0 0 0

Settled within 12 months 1 511 3 177 784 784 2 295 3 961

Settled in more than 12 months 10 315 0 16 618 11 684 26 933 11 684

Total 11 826 3 177 17 402 12 468 29 228 15 645

Housing Tasmania is required to meet the emerging cost of pension payments paid in respect of retired employees, where those employees had a superannuation entitlement that accrued before 1 July 1994.

The State Actuary undertook a revaluation of the present value of the benefit obligation and the fair value of the plan assets as at 30 June 2012 using the process outlined in Australian Accounting Standards Board Standard 119 Employee Benefits. As a result of the revaluation it was determined that the TASSS was in deficit by $11.8 million (2011 $3.18 million deficit). The movement over the financial year was primarily caused by an actuarial loss.

The State Actuary undertook a revaluation of the present value of the benefit obligation and the fair value of the plan assets as at 30 June 2012 using the process outlined in Australian Accounting Standards Board standard 119 Employee Benefits. As a result of the revaluation it was determined that the Housing Tasmania Superannuation Provision totalled $17.4 million (2011 $12.47 million deficit).

The valuation of the superannuation liability relates to the entitlements that accrued before 1 July 1994 for current employees of Housing Tasmania who are members of the Retirement Benefits Fund Contributory Scheme and former employees who were either contributors or non-contributors and who have retained benefits or are current pensioners.

Housing Tasmania Superannuation Provision


Total LiabilityTasmanian Ambulance Service Superannuation

Scheme


(c) Key Actuarial Assumptions

2012%

2011%

2012%

2011%

Discount rate (net of tax) 3.10 4.80 3.45 5.50

Expected return on assets 7.00 7.50 7.50 7.50

Expected rate of salary increases 4.50 4.50 3.50 4.50

n/a n/a 3.75 4.50

Inflation (pension) n/a n/a 2.50 2.50

(d) Reconciliation of Movements in Present Value of Superannuation Liability

2012$'000

2011$'000

2012$'000

2011$'000

2012$'000

2011$'000

Balance at 1 July 40 658 34 541 12 468 13 726 53 126 48 267

Current service cost 1 909 1 591 0 0 1 909 1 591

Interest cost 1 830 1 628 664 716 2 494 2 344

915 989 0 0 915 989

Actuarial losses/(gains) 7 314 3 086 5 019 ( 1 270) 12 333 1 816

Benefits paid ( 1 144) ( 671) ( 749) ( 704) ( 1 893) ( 1 375)

Other ( 581) ( 506) 0 0 ( 581) ( 506)

Balance at 30 June 50 901 40 658 17 402 12 468 68 303 53 126

Tasmanian Ambulance Service Superannuation

Scheme


Contributions by members and transfers from

other funds


Scheme

Total Liability


Expected rate of increase of compulsory

preserved amounts


(e) Reconciliation of Movements in Plan Assets

2012$'000

2011$'000

2012$'000

2011$'000

2012$'000

2011$'000

Balance at 1 July 37 481 33 389 0 0 37 481 33 389

Expected return on plan assets 2 548 2 319 0 0 2 548 2 319

Actuarial losses/(gains) ( 1 588) 581 0 0 ( 1 588) 581

Employer contributions 1 445 1 380 749 704 2 194 2 084

Contributions by plan participants 914 989 0 0 914 989

Benefits paid ( 1 144) ( 671) ( 749) ( 704) ( 1 893) ( 1 375)

Other ( 581) ( 506) 0 0 ( 581) ( 506)

Balance at 30 June 39 075 37 481 0 0 39 075 37 481

(f) Return on Plan Assets

RBF assets allocated to the Housing Tasmania Superannuation Provision are nil. Accordingly there is no return on assets for the Housing Tasmania Superannuation Provision.


The actual return on plan assets was a $960 000 gain. (2011 $2.9 million gain or approximately 2.51 per cent of average plan assets.) The difference between the expected return on plan assets and the actual return on plan assets is recognised as an actuarial gain or loss.

The expected rate of return on plan assets is based on expected future investment returns for each major asset class net of investment tax and investment fees. The long term expected rate of return (net

of investment tax and investment fees) is 7.50 per cent per annum for the strategic asset allocation of the

plan assets.


Scheme


Total Liability



2012%

2011%

2012$'000

2011$'000

Australian equity instruments 29.00 26.00 11 332 9 745

International equity instruments 17.00 23.00 6 643 8 621

Fixed income 12.00 12.00 4 689 4 498

Property 32.00 16.00 12 504 5 997

Alternatives/other investments 5.00 19.00 1 954 7 121

Cash 5.00 4.00 1 954 1 499

Total 100.00 100.00 39 075 37 481

2012$'000

2011$'000

2010$'000

2009$'000

2008$'000

Fair value of plan assets 39 075 37 481 33 389 29 934 34 300

Present value of defined benefit obligation 50 901 40 658 34 541 33 490 32 262

Surplus/(deficit) 11 826 3 177 1 152 3 556 ( 2 038)

Experience adjustments on plan liabilities ( 1 203) ( 2 910) 1 299 1 140 ( 317)

Experience adjustments on plan assets ( 1 588) 581 787 ( 6 576) ( 4 401)

2012$'000

2011$'000

2010$'000

2009$'000

2008$'000

Fair value of plan assets 0 0 0 0 0

Present value of defined benefit obligation 17 402 12 468 13 726 13 695 31 097

Surplus/(deficit) 17 402 12 468 13 726 13 695 31 097

Experience adjustments on plan liabilities ( 1 263) 1 060 760 1 196 ( 986)

Experience adjustments on plan assets 0 0 0 0 0

The history of experience adjustments is as follows:


Housing TasmaniaSuperannuation Provision

The analysis of the plan assets and the expected rate of return at the balance date is as follows:

Asset Allocation Fair Value of Plan Assets


(g) Amounts Recognised in Comprehensive Income

2012$'000

2011$'000

2012$'000

2011$'000

2012$'000

2011$'000

Net Return from Transactions

Current service cost 1 909 1 591 0 0 1 909 1 591

Interest cost 1 830 1 628 664 716 2 494 2 344

Expected return on plan assets ( 2 548) ( 2 319) 0 0 ( 2 548) ( 2 319)


Actuarial (gains)/losses 8 902 2 505 5 019 ( 1 270) 13 921 1 235

0 0 0 0 0 0

Total 10 093 3 405 5 683 ( 554) 15 776 2 851

(h) Funding Arrangements

The Agency expects to make a contribution of $1.511 million (2011 $1.488 million) to the defined benefit plan for the Tasmanian Ambulance Superannuation Scheme during the next financial year and a contribution of $784 000 (2011 $784 000) for the Housing Tasmania Superannuation Provision.

Adjustments for restrictions on the defined

benefit asset


Total Liability

The change for the year has been included in the employee entitlements expense in the Statement of Comprehensive Income.

Contributions to the Tasmanian Ambulance Superannuation Scheme and Housing Tasmania Superannuation Provision in respect of defined benefit schemes are made on an emerging cost basis.


Scheme


12.5 Other Liabilities

2012$'000

2011$'000

Revenue Received in Advance

485 367

Other revenue received in advance 2 589 2 092

Other Liabilities

Employee benefits - on-costs 4 091 13 279

Other liabilities - bank guarantees 404 150

Payroll accrual 27 429 25 319

Other liabilities 8 718 6 048

Total 43 716 47 255


Settled in more than 12 months 414 8 454

Total 43 716 47 255

Note 13 Commitments and Contingencies

13.1 Schedule of Commitments

2012$'000

2011$'000

By Type

Capital Commitments

Property, plant and equipment 57 527 71 257

Infrastructure 4 417 50 791

Total Capital Commitments 61 944 122 048

Operating Lease Commitments

Motor vehicles 11 648 28 985

Medical equipment 9 519 6 483

Rent on buildings 62 268 72 225

Information technology 9 797 22 856

Total Lease Commitments 93 232 130 549

Appropriation carried forward from current and previous years under section 8A(2) of the

Public Account Act 1986


2012$'000

2011$'000

Other Commitments

RFDS air ambulance standing charge 19 261 1 162

CSHA debt interest 131 197 140 820

Miscellaneous grants 276 423 382 744

Miscellaneous goods and services contracts 12 928 23 470

Total Other Commitments 439 809 548 196

Total 594 985 800 793

By Maturity

Capital Commitments

One year or less 53 941 115 206

From one to five years 8 003 6 842

More than five years 0 0

Total Capital Commitments 61 944 122 048

Operating Lease Commitments



More than five years 5 977 16 524

Total Operating Lease Commitments 93 232 130 549

Other Commitments



More than five years 96 015 95 996

Total Other Commitments 439 809 548 196

Total 594 985 800 793


The Agency is party to a Master Facility Agreement. No restrictions, provisions for price adjustments or purchase options are contained in the lease agreement. Terms of leases are set for specific periods. The average period of a lease is six years with an option to renew for a period of twelve months or the initial term, whichever is the lesser.

Medical Equipment (Operating lease)

The Government Motor Vehicle Fleet is managed as part of a Whole-of-Government arrangement with the Agency of Treasury and Finance as lessor. Lease payments vary according to the type of vehicle and, where applicable, the price received for trade-in vehicles. Lease terms for the majority of existing

vehicles are for a period of two years or 40 000 kilometres, whichever comes first, with no change to the lease rate. New vehicle leases are for a period of three years. No restrictions or purchase options are contained in the lease. The 2012 commitment was calculated on the basis of a monthly lease payment and registration but was over reported as the amount used in the calculation was not a monthly payment. The 2013 commitment was calculated on the basis of the annual lease payment plus registration cost of existing vehicles leased as at 30 June 2012. The cost of leases has decreased due to a reduction in lease vehicles to 1 055.

Motor Vehicles (Operating lease)

There has been a significant reduction in Housing Tasmania capital commitments in 2011-2012 from that in 2010-2011 which reflects the completion of commitments undertaken as part of delivery under the Commonwealth Economic Stimulus Program. Capital commitments include $4.4 million for the General Housing program which included $500 000 for the Commonwealth Economic Stimulus Program; $2 million under the State Housing Fund; and, $1.9 million for the development of a Community Centre and two subdivisions at Clarendon Vale. This is a reduction from the prior year, which included more significant commitments in regard to the Commonwealth Economic Stimulus Program. Capital projects for which a contract has not yet been executed include Stainforth Court, North West Land Release, Better Housing Futures Stage 1 and National Partnership Remote Indigenous Housing Stage 3.

Infrastructure

Property, plant and equipment commitments include commitments to either build or improve existing Health and Human Services properties totalling $57.5 million. This includes works associated with the major redevelopment of the Royal Hobart Hospital to a value of $46.5 million; the Launceston General Hospital redevelopment of the Acute Medical and Surgical Unit $1.4 million; Clarence Integrated Care Centre $1.1 million; North West Regional Hospital Car Park $4 million; North West Cancer Care Centre $800 000; and $1.2 million for the redevelopment of the health and hospital facility on King Island.

Property, Plant and Equipment


13.2 Contingent Assets and Liabilities

(a) Quantifiable Contingencies

A quantifiable contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

A quantifiable contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Miscellaneous goods and services contracts include Tasmania Affordable Housing Ltd (TAHL) ($2.2 million); $1.8 million to Population Health Services including maintenance services agreements for

Cancer Screening units to a value of $0.5 million; G4S contract of $2.3 million for the security contract at Wilfred Lopes Unit at Risdon Prison; and, $1.2 million medical services for St Helens, Flinders Island and Cape Barren Island.

Miscellaneous Goods and Services Contracts

The Agency’s Grants Unit has commitments of $276.4 million for Disability Services; Home and Community Care Services; Mental Health Support Services; Alcohol and Drug Support Services;

Supported Accommodation Assistance Program projects; and Population Health initiatives. The reduction in commitment reflects the completion of two of the three year terms of Disability Services Grants ($102 million).

Miscellaneous Grants

The Royal Flying Doctor Service (RFDS) charge covers availability of the aircraft and a back up aircraft with pilots available 24 hours a day with other fixtures including a hanger. It does not include variable costs such as flying hours and aviation charges.

Royal Flying Doctor Service Air Ambulance Standing Charge

Contingent assets and liabilities are not recognised in the Statement of Financial Position due to uncertainty regarding the amount or timing of the underlying claim or obligation.

Information Technology has infrastructure and software licence commitments. The reduction in commitment is mainly due to reassessing one-off contracts and contracts that are coming to a close. The Microsoft contract is due to be renegotiated for a three year renewal in December 2012.

Rent on Buildings (Operating Lease)

The Agency leases a range of properties/tenancies around the State for service delivery purposes.

Information Technology


2012$'000

2011$'000

Quantifiable Contingent Liabilities

Contingent Claims

Medical and other legal claims 25 165 24 395

Workers compensation 15 208 17 583

Total Quantifiable Contingent Liabilities 40 373 41 978

Quantifiable Contingent Assets

Community housing properties 73 182 54 263

Less accumulated depreciation and amortisation ( 5 401) ( 1 643)

Total Quantifiable Contingent Assets 67 781 52 620

The Agency has 593 open workers’ compensation claims (2011 – 842 open claims). The Agency insures through the TRMF. A one week excess on weekly benefits is payable on every claim. Amounts over the

excess are met by the Fund. The significant number of open claims and value of claims in 2010-2011 reflected the consequence of new workers compensation legislation that commenced on 1 July 2010 and

delays in closing claims. The number of claims has now settled to a more normal level following the spike as a result of the changes to the legislation last financial year.

The Agency manages its legal claims through the Tasmanian Risk Management Fund (TRMF). A $50 000 excess remains payable for every claim. Amounts over that excess are met by the TRMF. Further actuarial advice is being obtained which will be utilised in setting future TRMF premiums.

At 30 June 2012, the Agency had a number of legal claims against it for medical and other liability claims. At the reporting date the amounts of any eventual payments that may be required in relation to these claims have been estimated on information provided by Crown Law for Medical and Other Legal claims and Marsh Pty Ltd for the estimated value of outstanding Workers Compensation contingent claims.

Community housing properties represent dwellings for which legal title is held by community organisations, but for which the Director of Housing holds a legal interest which may be recognised subject to the future management of the properties and viability of the organisations. The Contingent Assets have not been recorded in the Agency's Financial Statements.


Note 14 Reserves

14.1 Reserves

2012DHHS

$'000Housing

$'000Total$'000

Asset Revaluation Reserve

Balance at the beginning of financial year 362 314 1 545 814 1 908 128

Revaluation increments/(decrements) 17 244 ( 3 983) 13 261

Balance at End of Financial Year 379 558 1 541 831 1 921 389

2011DHHS

$'000Housing

$'000Total$'000


Balance at the beginning of financial year 337 061 1 344 401 1 681 462

Revaluation increments/(decrements) 25 253 201 413 226 666

Balance at End of Financial Year 362 314 1 545 814 1 908 128

2012$'000

2011$'000

Contributed Capital Reserve

Balance at the beginning of financial year 6 094 6 094

Balance at End of Financial Year 6 094 6 094

Note 15 Cash Flow Reconciliation

15.1 Cash and Deposits


The Asset Revaluation Reserve is used to record increments and decrements on the revaluation of Non‑financial assets, as described in Note 2.12 (h).

Capital Contributed ReserveCapital Contributed records capital contributed on formation of the Home Ownership Assistance Program within the Director of Housing.

Cash and deposits includes the balance of the Special Deposits and Trust Fund Accounts held by the Agency, and other cash held, excluding those accounts which are administered or held in a trustee capacity or agency arrangement.


2012$'000

2011$'000

Special Deposits and Trust Fund Balance

T440 Tasmanian Guardianship Fund Account 2 2

T470 Patient Trust and Hospital Bequest Account 18 190 15 944

T510 DHHS Operating Account 51 577 29 028

T592 Housing Services Operating Account 7 113 5 494

T647 Home Ownership Assistance Program 11 188 11 940

T680 New Town Mothercraft Home Account 28 28

Total 88 098 62 436

Less Other Cash Held

Patient Trust and Hospital Bequest Account - Legal Trust Funds (720) ( 3 193) ( 2 128)

Other cash equivalents not included above 745 726

Total ( 2 448) ( 1 402)

Total Cash and Deposits 85 650 61 035

15.2 Reconciliation of Net Result to Net Cash from Operating Activities

2012$'000

2011$'000

Net result from transactions (net operating balance) ( 67 609) ( 28 357)

Depreciation and amortisation 61 044 59 467

Prior year grants adjustment 44 244 0

Recognition of assets as a result of stocktake/donations 0 ( 90)

Decrease (increase) in receivables ( 2 041) ( 3 338)

Decrease (increase) in other assets ( 2 159) ( 3 201)

Decrease (increase) in inventories ( 2 567) 631

Increase (decrease) in employee entitlements 24 562 7 177

Increase (decrease) in superannuation 296 768

Increase (decrease) in payables ( 3 760) ( 2 289)

Increase (decrease) in other liabilities ( 3 539) ( 3 249)

Net Cash from (Used By) Operating Activities 48 471 27 519


15.3 Acquittal of Capital Investment and Special Capital Investment Funds

(a) Project Expenditure

2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Capital Investment Program

Disability Services – Supported Accommodation 0 0 2 197

Launceston General Hospital Acute Medical and Surgical Unit 15 931 7 545 16 092

Nation Building - Economic Stimulus Plan: Housing - New Construction Stage 1 0 0 1 522

Nation Building - Economic Stimulus Plan: Housing - New Construction Stage 2 14 794 15 509 70 642

Nation Building - Economic Stimulus Plan: Housing - Repairs and Maintenance 0 0 0

PET-CT Scanner at the Royal Hobart Hospital 0 470 3 837

CCTV Project at Ashley Youth Detention Centre 0 0 263

Clarence GP Super Clinic 500 500 3 617

Housing – new projects 13 786 23 163 25 577

North West Regional Hospital 0 0 29 000

More car parking for North West Regional Hospital 4 000 1 225 29

East Coast Hhlipads 40 10 0

Statewide Cancer Services 13 236 13 579 1 592

National Health and Hospital Network Reforms: Emergency Agencys 3 900 2 894 0

National Health and Hospital Network Reforms: Elective Surgery 3 600 280 0

National Health and Hospital Network Reforms: Flexible Pool 3 200 0 0

Launceston Integrated Care Centre 3 878 6 957 10 310

Launceston General Hospital Emergency Agency 6 251 6 475 4 256

New ambulances 0 0 102

Housing – debt repayment and other 0 7 280 6 669

The Agency received Works and Services Appropriation funding and revenues from Special Capital Investment Funds to fund specific projects.

Cash outflows relating to these projects are listed below by category.

Budget information refers to original estimates and has not been subject to audit.


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Launceston General Hospital Gas Conversion 0 0 0

Royal Hobart Hospital Redevelopment 20 000 0 0

Royal Hobart Hospital Women's and Children's Hospital 10 000 7 164 0

Total Capital Investment Program 113 116 93 051 175 705

Special Capital Investment Funds

Economic and Social Infrastructure Fund

Hospital Equipment Fund 2 291 1 157 432

Infrastructure Tasmania Fund

Health Information Technology

Child Health Information System 0 0 197

Child Protection Information System Phase Two 0 0 0

Enterprise storage solution 0 0 395

LAN and infrastructure upgrade 1 000 1 002 494

Medical imaging project 965 941 1 691

Mental Health Services Electronic Client Management and Reporting System 1 078 837 440

Messaging and identifier systems 500 499 467

Patient Administration System 0 0 0

Health Infrastructure

Bruny Island Community Health Centre upgrade 0 0 7

Clarence GP Superclinic/ICC 7 846 7 069 4 699

Flinders Island Multi Purpose Centre upgrade 4 877 62 318

Glenorchy – Tier Three Community Health Services Facility 750 257 55

Longford / Westbury Health Centre upgrade 0 159 1 695

Launceston ICC 2 000 860 500

King Island Hospital and Health Centre upgrade 3 200 3 705 392

Kingston – Tier Three Community Health Services Facility 1 000 0 0

Tasmanian Ambulance Service Station upgrade 0 41 49


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Primary Health Plan implementation – minor works 0 0 3

Launceston General Hospital fire detection system upgrade 0 0 295

Tasmanian Ambulance Station Headquarters upgrade 0 100 2 302

Central Highlands Community Health Centre 0 45 1 291

Hospitals Capital Fund

Launceston General Hospital car park 8 324 8 097 4 563

North West Regional Hospital 0 0 720

Royal Hobart Hospital 51 000 31 527 16 095

Urban Renewal and Heritage Fund

Urban renewal – Bridgewater/Gagebrook 0 136 452

Urban renewal – Bethlehem House 0 0 5

Housing Fund

Housing Fund 23 462 7 868 14 414

Royal Hobart Hospital Redevelopment Fund

Royal Hobart Hospital redevelopment project 0 0 13

Total Special Capital Investment Fund 108 293 64 362 51 984

Total 221 409 157 413 227 689

(b) Reconciliation of Funding Sources

2012$'000

2011$'000

Funding Source Outflows

Expenditure from appropriation receipts - capital 67 925 145 849

Expenditure from revenue streams 26 017 29 856

Expenditure from SCIF 63 471 51 984

Total Cash Outflows 157 413 227 689


(c) Classification of Cash Flows

2012$'000

2011$'000

Cash Outflows

Employee benefits 3 687 3 651

Supplies and consumables 12 245 10 549

Grants 5 234 4 559

Payments for acquisition of assets 129 186 202 017

Debt repayment 6 812 6 669

Other cash payments 249 244

Total Cash Outflows 157 413 227 689

15.4 Financing Facilities

Note 16 Financial Instruments

16.1 Risk Exposures

(a) Risk Management Policies

· credit risk

· liquidity risk and

· market risk.

The Head of Agency has overall responsibility for the establishment and oversight of the Agency’s risk management framework. Risk management policies are established to identify and analyse risks faced by the Agency, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

The project expenditure above is reflected in the Statement of Cash Flows as follows.

The Agency does not have any financing facilities. The balance of the Agency's Westpac Banking Corporation Credit Card settlement account as at 30 June 2012 was $108 000 (30 June 2011 it was $126 000).

The Agency has exposure to the following risks from its use of financial instruments:


(b) Credit Risk Exposures

2012$'000

2011$'000

Guarantee provided 0 0

Total 0 0

Loans and receivables are recognised at the nominal amounts

due, less any provision for impairment.

Collectability of debts is reviewed on a monthly basis.

Provisions are made when the collection of the debt is judged

to be less rather than more likely.

Equity Investments are recognised at the nominal amounts due,

less any provision for impairment.

Other financial assets are recognised at the nominal amounts

due, less any provision for impairment.

Cash and deposits are recognised at face value.

Accounting and Strategic Policies (Including

Recognition Criteria and Measurement Basis)

Credit risk is the risk of financial loss to the Agency if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

Financial Instrument

Cash means notes, coins and any deposits

held at call with a bank or financial institution.

Other financial assets credit terms are

generally 45 days.

Equity investments credit terms require the

repayment of the Agency equity interest in a

land and building asset, in cash, within a

maximum term of 15 years.

Loans and Receivables

Nature of Underlying Instrument (Including Significant Terms and Conditions Affecting the Amount, Timing and Certainty of Cash Flows)

Receivables credit terms are generally 45

days.

Equity Investments

Financial Assets

Other Financial Assets

Cash and Deposits

The Agency has made no changes to its credit risk policy during 2011-2012. The Agency does not hold any security instrument for its Cash and deposits, Other financial assets and receivables. Loan advances are secured by a mortgage over real property. Equity investments represent the Agency’s equity interest in land and building assets sold to Housing Tasmania clients and payable in cash within 15 years. The equity investments are revalued on a yearly basis. No credit terms on any Agency financial assets have been renegotiated.

Except as detailed in the following table, the carrying amount of financial assets recorded in the Financial Statements, net of any allowances for losses, represents the Agency's maximum exposure to credit risk

without taking into account any collateral or other security:


Analysis of financial assets that are past due at 30 June 2012 but not impaired.

Past due < 30 days

$'000

Past due 30-120 days

$'000

Past due >120 days

$'000

Total $'000

Receivables 3 624 1 879 5 853 11 356

Analysis of financial assets that are past due at 30 June 2011 but not impaired.Past due

< 30 days $'000


$'000

Past due >120 days

$'000

Total $'000

Receivables 2 133 1 426 2 550 6 109

(c) Liquidity Risk

Financial Liabilities

The Agency regularly reviews budgeted and actual cash

outflows to ensure that there is sufficient cash to meet all

obligations.

Other Financial Liabilities

Accounting and strategic policies (including recognition

criteria and measurement basis)

Loans are initially measured at fair value net of transaction

costs. Loans are subsequently measured at amortised cost

using the effective interest rate method, with interest expense

recognised on an effective yield basis.

Settlement is usually made within 30 days.Payables, including goods received and services incurred but

not yet invoiced, are recognised at amortised cost, which due

to the short settlement period equates to face value, when the

Agency becomes obliged to make future payments as a result

of a purchase of assets or services.

Payables

Other financial liabilities are recognised at amortised cost,

which due to the short settlement period equates to face value,

when the Agency becomes obliged to make payments as a

result of the purchase of assets or services.

The following tables analyse financial assets that are past due but not impaired.

Liquidity risk is the risk that the Agency will not be able to meet its financial obligations as they fall due. The Agency’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.

Financial Instrument Nature of underlying instrument (including significant terms and conditions affecting the amount, timing and certainty of cash flows)

Contractual payments are made in

accordance with contractual terms.

Interest Bearing Liabilities

Settlement is usually made within 30 days.


Maturity Analysis for Financial Liabilities

1 Year$'000

2 Years$'000

3 Years$'000

4 Years$'000

5 Years$'000

More than 5 Years

$'000

Undiscounted

TotalCarrying Amount

$'000


Payables 38 760 0 0 0 0 0 38 760 38 760

6 968 7 147 7 328 7 456 7 617 173 292 209 808 209 808

36 147 0 0 0 0 0 36 147 36 147

Total 81 875 7 147 7 328 7 456 7 617 173 292 284 715 284 715

Maturity Analysis for Financial Liabilities

1 Year$'000

2 Years$'000

3 Years$'000

4 Years$'000

5 Years$'000

More than 5 Years

$'000

Undiscounted

TotalCarrying Amount

$'000


Payables 40 431 0 0 0 0 0 40 431 40 431

6 812 6 968 7 147 7 328 7 456 180 909 216 620 216 620

31 367 0 0 0 0 0 31 367 31 367

Total 78 610 6 968 7 147 7 328 7 456 180 909 288 418 288 418

(d) Market Risk

2012

2011

Other financial

liabilities

Interest bearing

liabilitiesOther financial

liabilities

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk that the Agency is exposed to is interest rate risk.

The Agency currently has the majority of its financial liabilities at fixed interest rates with the effect that any exposure to movements in interest rates is minimised.

The following tables detail the undiscounted cash flows payable by the Agency by remaining contractual maturity for its financial liabilities. It should be noted that as these are undiscounted, totals may not reconcile to the carrying amounts presented in the Statement of Financial Position.

Interest bearing

liabilities


2012$'000

2011$'000

Fixed Rate Instruments

Financial assets 0 0

Financial liabilities 209 808 216 620

Total 209 808 216 620

Variable Rate Instruments

Financial assets 4 567 5 855

Financial liabilities 0 0

Total 4 567 5 855

Sensitivity Analysis of Agency’s Exposure to Possible Changes in Interest Rates

100 basis points

increase$'000

100 basis points

decrease$'000

100 basis points

increase$'000

100 basis points

decrease$'000

30 June 2012

Financial assets 46 ( 46) 46 ( 46)


Net sensitivity 46 ( 46) 46 ( 46)

30 June 2011

Financial assets 59 ( 59) 59 ( 59)


Net sensitivity 59 ( 59) 59 ( 59)

This analysis assumes all other variables remain constant. The analysis was performed on the same basis for 2011.

Statement of Comprehensive Income

At the reporting date, the interest rate profile of the Agency’s interest bearing financial instruments was:

(e) Changes in variable rates of 100 basis points at reporting date would have the following effect on the Agency’s profit or loss and equity:

Equity


16.2 Categories of Financial Assets and Liabilities2012$'000

2011$'000

Financial assets

Cash and cash equivalents 85 650 61 035

Loans and receivables 34 070 37 327

Available -for-sale financial assets 4 623 3 152

Total 124 343 101 514


Financial liabilities measured at amortised cost 209 808 216 620

Total 209 808 216 620

16.3 Reclassifications of Financial Assets

Carrying Amount 2012

$0'000

Net Fair Value 2012

$'000

Carrying Amount

2011$'000

Net Fair Value 2011

$'000

Financial Assets

Other financial assets

Equity investments 4 623 4 623 3 152 3 152

Other 119 720 119 720 98 362 98 362

Total Financial Assets 124 343 124 343 101 514 101 514

Financial Liabilities (Recognised)

Other financial liabilities

Borrowings 209 808 209 808 216 620 216 620

Total Financial Liabilities (Recognised) 209 808 209 808 216 620 216 620

Unrecognised Financial Instruments 0 0 0 0

Total Unrecognised Financial Instruments 0 0 0 0

The Agency has reclassified Goods and Services Tax receivables from receivables to other financial assets during the financial year ended 30 June 2012. 2010-2011 figures have been restated to reflect this reclassification.

The Agency’s maximum exposure to credit risk for its financial assets is $124.3 million (2011 - $101.5 million). It does not hold nor is the Agency a party to any credit derivatives and no changes have occurred to the fair value of its assets as a result of market risk or credit risk. While interest rates have changed during the financial year, the value of security held is significantly more than the value of the underlying asset and no loan advances are impaired. The value of receivables is not affected by changes in interest rates. The Agency actively manages its credit risk exposure for the collectability of its receivables and outstanding loans.

16.4 Comparison between Carrying Amount and Net Fair Value of Financial


16.5 Net Fair Values of Financial Assets and LiabilitiesNet Fair

Value Level 1$'000

Net Fair Value Level

2$'000


3$'000

Net Fair Value Total

$000

Financial Assets


Equity investments 4 623 0 0 4 623

Other 0 0 0 0

Total Financial Assets 4 623 0 0 4 623



Borrowings 0 0 0 0

Other 0 0 0 0

Total Financial Liabilities (Recognised) 0 0 0 0



Net Fair Value Level 1

$'000


2$'000


3$'000


$000

Financial Assets


Equity investments 3 152 0 0 3 152

Other 0 0 0 0

Total Financial Assets 3 152 0 0 3 152



Borrowings 0 0 0 0

Other 0 0 0 0

Total Financial Liabilities (Recognised) 0 0 0 0



2012

2011


Transfer between Categories

Financial Assets


Unrecognised Financial Instruments

Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.

The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

The net fair values of Equity investments are based on the Agency interest in the various land and building assets. An active market exists for the underlying assets that provides for a reliable measurement of the fair value of the Equity investment. The land and building assets were valued as at 31 October 2011 by the Valuer-General using a mix of onsite revaluations and suburb based indices adjustments with the increase or decrease recognised in the Statement of Comprehensive Income.

The net fair values of Borrowings and Other financial liabilities are based on the outstanding value owed by the Agency and are approximated by their carrying amounts.

The net fair values of indemnities are regarded as the maximum possible loss which the State faces while the indemnity remains current.

The Agency did not transfer any financial assets or financial liabilities between Level 1 and Level 2. The Agency does not have any Level 3 instruments.

The recognised fair values of financial assets and financial liabilities are classified according to the fair value hierarchy that reflects the significance of the inputs used in making these measurements. The Agency uses various methods in estimating the fair value of a financial instrument. The methods comprise:

Level 1 – the fair value is calculated using quoted prices in active markets

Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) and


Note 17 Details of Consolidated Entities

17.1 List of Entities

Director of Housing 100 per cent per annum

Director of Ambulance Services 100 per cent per annum

Tasmanian Affordable Housing Limited

Statement of Comprehensive Income for the Year Ending 30 June 20122012$'000

2011$'000

Total Revenue and Other Income from Transactions 2 122 2 550


Property management expenses 1 778 1 072

Management expenses 251 395

Other expenses 46 115

Total Expenses from Transactions 2 075 1 582

Net Result from Transactions (Net Operating Balance) 47 968

Comprehensive Result 47 968

The following entities have been consolidated by the Agency:

TAHL has not been consolidated into the Agency’s financial statements as at 30 June 2012. The unaudited Statement of Comprehensive Income for the year ending 30 June 2012 and Statement of Financial Position as at 30 June 2012 are provided below.

On 11 March 2011, the Crown, represented by the Minister for Human Services, became the sole shareholder of the shares in Tasmanian Affordable Housing Limited (TAHL), thus assuming control of TAHL as a wholly owned Government entity.


Statement of Financial Position as at 30 June 20122012$'000

2011$'000

Assets

Cash and cash equivalents 1 272 834

Trade and other receivables 146 367

Property plant and equipment 0 0

Total Assets 1 418 1 201

Liabilities

Trade and other payables 57 86

Provisions 271 72

Total Liabilities 328 158

Net Assets 1 090 1 043

Equity

Retained earnings 1 090 1 043

Total Equity 1 090 1 043

Note 18 Notes to Administered Statements

(a) Schedule of Administered Income and Expenses

NoteBudget

$'000Actual

$'000Variance

$'000Variance

%

Annual Appropriation (a) 24 876 34 859 9 983 40.1

Grants (b) 36 680 45 479 8 799 24.0

Grants and Transfer Payments (c) 24 957 35 720 ( 10 763) (43.1)

Transfer to the Consolidated Fund (d) 36 600 46 057 ( 9 457) (25.8)

The following are brief explanations of material variances between budget estimates and actual outcomes. Variances are considered material where the variance exceeds the greater of 10 per cent of budget estimate and $200 000.

18.1 Explanations of Material Variances between Budget and Actual Outcomes


(b) Schedule of Administered Assets and Liabilities

NoteBudget

$'000Actual

$'000Variance

$'000Variance

%

Schedule of Administered Assets and Liabilities

Receivables (a) 2 489 3 988 1 499 60.2

Payables (b) 6 036 8 041 ( 2 005) (33.2)

(d) Relates to an increase in Australian Government funding for Commonwealth Own Purpose Expenditure, such as high cost drugs.

(b) Relates to an increase in Australian Government funding for Commonwealth Own Purpose Expenditure, such as high cost drugs.

(c) Relates to higher than budgeted Community Service Obligation claims from Aurora Energy and unbudgeted ex-gratia payments in relation to Listen to the Children compensation scheme

Notes to Schedule of Administered Income and Expenses Variances

(a) Relates to higher than budgeted Community Service Obligation claims from Aurora Energy and unbudgeted ex-gratia payments in relation to Listen to the Children compensation scheme


(c) Schedule of Administered Cash Flows

NoteBudget

$'000Actual

$'000Variance

$'000Variance

%

Schedule of Administered Cash Flows

Annual appropriation (a) 24 876 34 859 9 983 40.1

Grants (b) 36 600 46 057 9 457 25.8

Grants and transfer payments (c) ( 24 876) ( 34 859) ( 9 983) (40.1)

Transfer to the consolidated fund (d) ( 36 600) ( 46 057) ( 9 457) (25.8)

18.2 Administered Underlying Net Operating Balance

(b) Represents higher than budgeted Aurora Energy Community Service Obligation claim accrued as at 30 June 2012 in respect of April-June 2012 quarter.

Notes to Schedule of Administered Cash Flow Variances

(a) Relates to higher than budgeted Community Service Obligation claims from Aurora Energy and unbudgeted ex-gratia payments in relation to Listen to the Children compensation scheme

(a) Reflects higher than budgeted Australian Government Grants accrued but not paid as at 30 June 2012.

Notes to Schedule of Administered Assets and Liabilities Variances

Administered non-operational capital funding is the income from transactions relating to funding for capital projects. This funding is classified as income from transactions and included in the net operating balance. However, the corresponding capital expenditure is not included in the calculation of the net operating balance. Accordingly, the net operating balance will portray a position that is better than the true underlying financial position.


(b) Relates to an increase in Australian Government funding for Commonwealth Own Purpose Expenditure, including high cost drug expenditure.

(c) Relates to higher than budgeted Community Service Obligation claims from Aurora Energy and unbudgeted ex-gratia payments in relation to Listen to the Children compensation scheme.

(d) Relates to an increase in Australian Government funding for Commonwealth Own Purpose Expenditure, including high cost drug expenditure.


2012Budget

$'000

2012Actual

$'000

2011Actual

$'000

Net Result from Transactions (Net Operating Balance) ( 1) ( 1 439) 929

Less Impact of Non-Operational Capital Funding 0 0 0

Underlying Net Operating Balance ( 1) ( 1 439) 929

18.3 Administered Revenue from Government

2012Budget

$'000

2012Actual

$'000

2011Actual

$'000


Appropriation revenue - recurrent

Current year 24 876 34 859 37 550

Total 24 876 34 859 37 550

Revenue from Government - other 0 0 0

Total 24 876 34 859 37 550

Non-Operational Capital Funding 0 0 0

Total 0 0 0

Total Administered Revenue from Government 24 876 34 859 37 550

Administered revenue from Government includes revenue from appropriations, appropriations carried forward under section 8A(2) of the Public Account Act 1986 and Items Reserved by Law.

The Budget information is based on original estimates and has not been subject to audit.

Section 8A(2) of the Public Account Act allows for an unexpended balance of an appropriation to be transferred to an Account in the Special Deposits and Trust Fund for such purposes and conditions as approved by the Treasurer. In the initial year the carry forward is recognised as a liability - Revenue Received in Advance. The carry forward from the initial year is recognised as revenue in the reporting

year assuming that the conditions of the carry forward are met and the funds are expended. There were no administered funds carried forward in 2010-2011 or 2011-2012.


18.4 Administered Grants

2012$'000

2011$'000


Grants from the Australian Government

General grants 45 479 46 133

Total Administered Revenue from Grants 45 479 46 133

18.5 Administered Grants and Subsidies

2012$'000

2011$'000

Grants and Transfer Payments 35 720 38 734

Total 35 720 38 734

Recurrent and Capital grants received from the Australian Government are specific purpose grants provided for the Australian Health Care Agreement; specialised drugs; home and community care; public health outcomes funding agreement; Commonwealth-State housing agreement; supported accommodation assistance; disability services; general housing and health. All monies have been paid to the Department of Treasury and Finance in terms of the agreement. From 1 July 2009 the Australian Government and the state and territory governments agreed to pay any grants direct to the state and territory Treasury Agencies.

The Agency provides ex-gratia payments of $2.6 million as part of the Children Abused in Care program.

The Agency provides funding of $33.1 million to Aurora Energy Pty Ltd for the purpose of providing a subsidy to eligible Tasmanian pensioners and Health Care Card holders on their electricity accounts.


18.6 Administered Receivables

2012$'000

2011$'000


Less: provision for Impairment 0 0

Total 3 988 4 446

Sales of goods and services (inclusive of GST) 3 988 4 446

Total 3 988 4 446


Total 3 988 4 446

18.7 Administered Payables

2012$'000

2011$'000

Other creditors 8 041 7 059

Total 8 041 7 059


Total 8 041 7 059

2012$'000

2011$'000

Net result from transactions (net operating balance) ( 1 439) 929

Decrease (increase) in receivables 458 ( 2 113)

Increase (decrease) in payables 981 1 184

Net Cash From (Used By) Operating Activities 0 0

18.8 Reconciliation of Administered Net Result to Net Cash from Administered Operating Activities


18.9 Financial Instruments (Administered)

(a) Risk Management Policies

· credit risk

· liquidity risk and

· market risk.

(b) Credit Risk Exposures

Analysis of administered financial assets that are past due at 30 June 2012 but not impaired.Past due

< 30 days $'000


$'000

Past due >120 days

$'000

Total $'000

Receivables 0 0 2 544 2 544

Analysis of administered financial assets that are past due at 30 June 2011 but not impaired.Past due

< 30 days $'000


$'000

Past due >120 days

$'000

Total $'000

Receivables 2 622 0 0 2 622

The Head of Agency has overall responsibility for the establishment and oversight of the Agency’s risk management framework. Risk management policies are established to identify and analyse risks faced by the Agency, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

Credit risk is the risk of financial loss to the Agency if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

The carrying amount of administered financial assets recorded in the Financial Statements, net of any allowances for losses, represents the Agencys maximum exposure to credit risk.

The following tables analyse financial assets that are past due but not impaired.

Financial Assets

The Agency has exposure to the following risks from its use of financial instruments:

Financial Instrument

Receivables are recognised at the nominal

amounts due, less any provision for

impairment.

Collectability of debts is reviewed on a

monthly basis. Provisions are made when the

collection of the debt is judged to be less

rather than more likely.

Receivables Receivables credit terms are generally 45 days.

Cash and Deposits Cash and deposits are recognised at face

value.

Cash means notes, coins and any deposits held at call with a

bank or financial institution.

Accounting and Strategic Policies (Including Recognition Criteria and Measurement Basis)



(c) Liquidity Risk

Maturity Analysis for Administered Financial Liabilities

1 Year $'000 2 Years $'000

3 Years $'000

4 Years $'000

5 Years $'000

More than 5 Years

$'000

Undiscounted

Total$'000

Carrying Amount

$'000

Financial liabilities

Payables 8 041 0 0 0 0 0 8 041 8 041

Total 8 041 0 0 0 0 0 8 041 8 041

Maturity Analysis for Administered Financial Liabilities

1 Year $'000 2 Years $'000

3 Years $'000

4 Years $'000

5 Years $'000

More than 5 Years

$'000

Undiscounted

Total$'000

Carrying Amount

$'000


Payables 7 059 0 0 0 0 0 7 059 7 059

Total 7 059 0 0 0 0 0 7 059 7 059

Financial InstrumentAccounting and Strategic Policies (Including Recognition Criteria and Measurement Basis)


Liquidity risk is the risk that the Agency will not be able to meet its financial obligations as they fall due. The Agency’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due.

2011

2012

The following tables detail the undiscounted cash flows payable by the Agency by remaining contractual maturity for its financial liabilities. It should be noted that as these are undiscounted, totals may not reconcile to the carrying amounts presented in the Statement of Financial Position.


Payables, including goods received and

services incurred but not yet invoiced, are

recognised at amortised cost, which due to

the short settlement period equates to face

value, when the Agency becomes obliged to

make future payments as a result of a

purchase of assets or services.

The Agency regularly reviews budgeted and

actual cash outflows to ensure that there is

sufficient cash to meet all obligations

Payables Settlement is usually made within 30 days.


(d) Market Risk

2012$'000

2011$'000

Administered Fixed Rate Instruments



Total 0 0

Administered Variable Rate Instruments



Total 0 0

Sensitivity Analysis of Agency’s Exposure to Possible Changes in Interest Rates

100 Basis Points

Increase $'000

100 Basis Points

Increase $'000

100 Basis Points

Increase $'000

100 Basis Points

Increase $'000

30 June 2012



Net Sensitivity 0 0 0 0

30 June 2011



Net Sensitivity 0 0 0 0

At the reporting date, the Agency did not have any administered interest bearing financial instruments. Accordingly, exposure to interest rate risk from administered interest bearing financial instruments was nil.

The Agency did not have any administered interest bearing financial instruments. Accordingly changes in variable rates of 100 basis points at reporting date would have a nil effect on the Agency’s surplus or deficit and equity.

Statement of Comprehensive Income

This analysis assumes all other variables remain constant. The analysis was performed on the same basis for 2011.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk that the Agency is exposed to is interest rate risk.

Equity


18.10 Categories of Administered Financial Assets and Liabilities

2012$'000

2011$'000


Loans and receivables 3 988 4 446

Total 3 988 4 446

Administered Financial Liabilities

Financial liabilities at fair value through profit and loss 8 041 7 059

Total 8 041 7 059


1$'000


2$'000


3$'000


$000


Receivables 3 988 3 988 4 446 4 446

Total Administered Financial Assets 3 988 3 988 4 446 4 446

Administered Financial Liabilities (Recognised)

Trade creditors 8 041 8 041 7 059 7 059

Total Administered Financial Liabilities (Recognised) 8 041 8 041 7 059 7 059

Unrecognised Administered Financial Instruments 0 0 0 0

Total Unrecognised Administered Financial Instruments 0 0 0 0

18.11 Comparison between Carrying Amount and Net Fair Value of Financial Assets and Liabilities


18.12 Net Fair Values of Administered Financial Assets and Liabilities2012 Net Fair

Value Level 1

$'000


2$'000


3$'000


$000


Other 0 0 0 0

Total Administered Financial Assets 0 0 0 0


Other 0 0 0 0

Total Administered Financial Liabilities (Recognised) 0 0 0 0



2011 Net Fair Value Level 1

$'000


2$'000


3$'000


$000


Other 0 0 0 0

Total Administered Financial Assets 0 0 0 0


Other 0 0 0 0

Total Administered Financial Liabilities (Recognised) 0 0 0 0




2012$'000

2011$'000

Opening Balance

Total gains and losses 0 0

Other comprehensive income 0 0

Purchases 0 0

Sales 0 0

Transfers from other categories 0 0

Closing Balance 0 0

Total gain or loss stated in the table above for assets held at the end of the reporting period 0 0


The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

Level 1 – the fair value is calculated using quoted prices in active markets

Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) and

Level 3 – the fair value is estimated using inputs for the asset or liability that are not based on observable market data.

Transfer Between Categories

There have been no transfers between Level 1, Level 2 and Level 3.

Reconciliation of Level 3 Fair Value Movements

The Agency does not have any Level 3 Financial Assets or Financial Liabilities.

The net fair values for trade creditors are approximated by their carrying amounts.

Unrecognised Administered Financial Instruments

The net fair values of indemnities are regarded as the maximum possible loss which the State faces while the indemnity remains current.

There are no unrecognised Administered Financial Instruments.

The recognised fair values of administered financial assets and administered financial liabilities are classified according to the fair value hierarchy that reflects the significance of the inputs used in making these measurements. The Agency uses various methods in estimating the fair value of a financial instrument. The methods comprise:

Administered Financial Liabilities


Account/Activity

Opening Balance

$'000

Net Transactions

During2011-2012

$'000

Closing Balance

$'000

T470 Patient Trust and Bequest Account – Legal Trusts 2 128 1 065 3 193

Royal Hobart Hospital Patients Trust Account 6 0 6

Royal Hobart Hospital Private Patients Scheme 438 223 661

Mental Health Services Client Trust Account 157 ( 102) 55

Campbell Town District Hospital Patients Trust Account 25 ( 18) 7

Note 19 Transactions and Balances Relating to a Trustee or Agency Arrangement




Statement of Certification


Special Purpose Financial StatementsAmbulance Tasmania


Notes2012

Actual$'000

2011Actual

$'000




Attributed appropriation revenue - recurrent 1.6(a) 49 895 49 008

Attributed appropriation revenue - works and services 1.6(a) 10 0

Revenue from Special Capital Investment Funds 22 172

Sales of goods and services 1.6(c), 3.1 6 378 4 607

Contributions received 1.6(e), 3.2 1 768 441

Other revenue 1.6(f), 3.3 3 334 2 451

Total Revenue and Other Income from Transactions 61 407 56 679


Employee benefits 1.7(a), 4.1 37 940 35 042

Depreciation 1.7(b), 4.2 3 045 2 764

Supplies and consumables 4.3 15 715 13 695

Grants and subsidies 1.7(c), 4.4 25 25

Other expenses 1.7(d), 4.5 2 800 3 078

Total Expenses from Transactions 59 525 54 604

Net Result from Transactions (Net Operating Balance) 1 882 2 075

Non-Operational Capital Funding


Revenue from Special Capital Investment Funds 119 2 210

Total Non-Operating Capital Funding 119 2 210


Ambulance Tasmania Statement of Comprehensive Income for the Year Ended 30 June 2012


Notes2012

Actual$'000

2011Actual

$'000


Net gain/(loss) on non-financial assets 1.8(a)(c), 5.1 65 50

Net actuarial gains/(losses) of superannuation defined benefit plans 7.3(c) ( 8 902) ( 2 505)

1.8(b), 5.2 22 ( 118)

Total Other Economic Flows Included in Net Result ( 8 815) ( 2 573)

Net Result from Continuing Operations ( 6 814) 1 712

Other Economic Flows - Other Non-owner Changes in Equity

Changes in asset revaluation reserve 9.1 58 219

58 219

Comprehensive Result ( 6 756) 1 931

This Statement of Comprehensive Income should be read in conjunction with the accompanying notes.


Total Other Economic Flows - Other Non-owner Changes in Equity


Notes2012

Actual$'000

2011Actual

$'000

Assets

Financial Assets

Cash and deposits 1.9(a) 0 0

Receivables 1.9(b), 6.1 5 348 3 215

Loan Advances 1.9(c), 6.2 0 1

Non-Financial Assets

Inventories 1.9(d), 6.3 556 482

Assets held for sale 1.9(e), 6.4 99 99

Property, plant and equipment 1.9(f), 6.5 33 160 33 080

Intangibles 1.9(g), 6.6 126 41

Other assets 1.9(h), 6.7 98 236

Total Assets 39 387 37 154

Liabilities

Payables 1.10(a), 7.1 713 624

Employee benefits 1.10(c), 7.2 9 868 9 151

Superannuation 1.10(d), 7.3 11 826 3 177

Other liabilities 1.10(e), 7.4 217 683

Total Liabilities 22 624 13 635

Net Assets 16 763 23 519

Equity

Reserves 9.1 16 732 16 674

Accumulated funds 31 6 845

Total Equity 16 763 23 519

This Statement of Financial Position should be read in conjunction with the accompanying notes.

Ambulance Tasmania Statement of Financial Position as at 30 June 2012


Accumulated

Funds Total

Equity

$'000 $'000

Balance as at 1 July 2011 16 674 6 845 23 519

Total comprehensive result 58 ( 6 814) ( 6 756)

Balance as at 30 June 2012 16 732 31 16 763

Reserves$'000

Accumulated

FundsTotal

Equity

$'000 $'000

Balance as at 1 July 2010 16 455 5 133 21 588

Total comprehensive result 219 1 712 1 931

Balance as at 30 June 2011 16 674 6 845 23 519

This Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Notes Page No.

Note 1 Significant Accounting Policies 322

1.1 Objectives and Funding 322

1.2 Basis of Accounting 322

1.3 Reporting Entity 323

1.4 Functional and Presentation Currency 323

1.5 Changes in Accounting Policies 323

1.6 Revenue and other Income from Transactions 327

1.7 Expenses from Transactions 328

1.8 Other Economic Flows Included in Net Result 329

1.9 Assets 330

1.10 Liabilities 331

1.11 Leases 333

1.12 Judgements and Assumptions 333

1.13 Foreign Currency 334

1.14 Comparative Figures 334

1.15 Rounding 334

1.16 Departmental Taxation 334

1.17 Goods and Services Tax 334

Ambulance Tasmania Statement of Changes in Equity for the Year Ended 30 June 2012

Reserves$'000

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2012


Notes Page No.

Note 2 Underlying Net Operating Balance 335

Note 3 Income from Transactions 335

3.1 Sales of Goods and Services 335

3.2 Contributions Received 335

3.3 Other Revenue 336

Note 4 Expenses from Transactions 336


4.2 Depreciation 337

4.3 Supplies and Consumables 337

4.4 Grants and Subsidies 338

4.5 Other Expenses 338

Note 5 Other Economic Flows Included in Net Result 338

5.1 Net Gain/(Loss) on Non-Financial Assets 338

5.2 Net Gain/(Loss) on Financial Instruments and Statutory Receivables/Payables 338

Note 6 Assets 339

6.1 Receivables 339

6.2 Loan Advances 339

6.3 Inventories 340

6.4 Assets Held for Sale 340

6.5 Property, Plant and Equipment 341

6.6 Intangibles 343

6.7 Other Assets 343

Note 7 Liabilities 344

7.1 Payables 344


7.3 Superannuation 345

7.4 Other Liabilities 347

Note 8 Commitments and Contingencies 348

8.1 Schedule of Commitments 348

Note 9 Reserves 350

9.1 Reserves 350


Note 1 Significant Accounting Policies

1.1 Objectives and Funding

1.2 Basis of Accounting

·

·

Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and

the Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990.

The changes include omission of the Cash Flow Statement (because the Service does not operate its own bank account), reconciliation of Cash to Net Operating Result, Financial Instruments and reduced disclosure in terms of Superannuation Reporting.

The Financial Statements were signed by the Secretary of the Department of Health and Human Services, Director of Ambulance Services and Deputy Chief Financial Officer of the Department of Health and Human Services on 15 August 2012.

Compliance with the Australian Accounting Standards (AAS) may not result in compliance with International Financial Reporting Standards (IFRS), as the AAS include requirements and options available to not-for-profit organisations that are inconsistent with IFRS. The Department of Health and Human

Services and Tasmanian Ambulance Service are considered to be not-for-profit and have adopted some accounting policies under the AAS that do not comply with IFRS.

The Financial Statements have been prepared on an accrual basis and, except where stated, are in accordance with the historical cost convention. The accounting policies are generally consistent with the previous year except for those changes outlined in Note 1.5.

The Financial Statements have been prepared as a going concern. The continued existence of the Agency and the Service in their present form, undertaking its current activities, is dependent on Government policy and on continuing appropriations by Parliament for the Agency's and the Service's administration and activities.

The Tasmanian Ambulance Service (the Service) provides emergency ambulance, transport and care services, and a non-emergency patient transport service. The provision of ambulance services in rural communities relies on the strength and commitment of volunteer ambulance officers working in volunteer units, branch stations and independent services. The Service is predominantly funded through funds from the Department of Health and Human Services (the Agency). In addition, the Service provides services to fee paying, privately insured patients or patients who will receive compensation for these expenses due to the circumstances surrounding the injury.

By agreement with the Auditor-General, the Financial Statements have been prepared for the first time as a Special Purpose Financial Report in accordance, except where stated, with:


1.3 Reporting Entity

1.4 Functional and Presentation Currency

1.5 Changes in Accounting Policies

(a) Impact of New and Revised Accounting Standards

·

·

·

·

·

·

In the current year, the Service has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period. These include:

AASB 1054 Australian Additional Disclosures – This Standard, in conjunction with AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans Tasman Convergence Project, removes disclosure requirements from other Standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards. There is no financial impact.

AASB 2009-12 Amendments to Australian Accounting Standards (AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 and 1031 and Interpretations 2, 4, 16, 1039 and 1052) – This Standard makes editorial amendments to a range of Australian Accounting Standards and Interpretations. There is no financial impact.

AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (AASBs 1, 7, 101, and 134 and Interpretation 13) – This Standard amends a range of Australian Accounting Standards and Interpretations as a consequence of the annual improvements

project.

The amendments to AASB 7 clarify financial instrument disclosures in relation to credit risk. The carrying amount of financial assets that would otherwise be past due or impaired, whose terms have been renegotiated, is no longer required to be disclosed. There is no financial impact.The amendments to AASB 101 clarify the presentation of the Statements of Changes in Equity. The disaggregation of other comprehensive income reconciling the carrying amount at the beginning and

the end of the period for each component of equity is no longer required. There is no financial impactAASB 2010-5 Amendments to Australian Accounting Standards (AASBs 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 and 1038 and Interpretations 112, 115, 127, 132 and 1042) – This Standard makes editorial amendments to a range of Australian Accounting Standards. There is no financial impact.

The Financial Statements include all the controlled activities of the Service. The Financial Statements consolidate material transactions and balances of the Service.

These Financial Statements are presented in Australian dollars, which is the Service's functional currency.


·

·

·

(b) Impact of New and Revised Accounting Standards Yet to be Applied

·

·

·

·

AASB 2011-15 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation (AASBs 127, 128 and 131) – This Standard extends the relief from consolidation, the equity method and proportionate consolidation by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compliant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity are not for profit non reporting entities that comply with Australian Accounting Standards. There is no financial impact.

The following applicable Standards have been issued by the AASB and are yet to be applied:

AASB 9 Financial Instruments – This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. The Standard was reissued in December 2010. The Service has not yet determined the potential financial impact of the

standard.

AASB 10 Consolidated Financial Statements – This Standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purpose Entities, introducing a number of changes to accounting treatments. The standard was issued

in August 2011. The Service has not yet determined the application or the potential impact of the Standard.

AASB 11 Joint Arrangements – This Standard supersedes AASB 131 Interest in Joint Ventures, introducing a number of changes to accounting treatments. The Standard was issued in August 2011. The Service has not yet determined the application or the potential impact of the Standard.

AASB 12 Disclosure of Interests in Other Entities – This Standard supersedes disclosure requirements under AASB 127 Consolidated and Separate Financial Statements and AASB 131 Interests in Joint Ventures. The Standard was issued in August 2011. The Service has not yet determined the application or the potential impact of the Standard.

AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets (AASBs 1 and 7) – This Standard introduces additional disclosure relating to transfers of financial assets in AASB 7. An entity shall disclose all transferred financial assets that are not derecognised and any continuing involvement in a transferred asset, existing at the reporting date, irrespective of when the related transfer transaction occurred. There is no financial impact.

AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans Tasman Convergence Project (AASBs 1, 5, 101, 107,108, 121, 128, 132 and 134 and Interpretations 2, 112 and 113) – This

Standard, in conjunction with AASB 1054, removes disclosure requirements from other Standards and incorporates them in a single Standards to achieve convergence between Australian and New Zealand Accounting Standards. There is no financial impact.


·

·

·

·

·

·

·

·

AASB 128 Investments in Associates and Joint Ventures – This Standard supersedes AASB 128 Investments in Associates and introduces a number of changes to accounting treatments. The Standard was issued in August 2011. The Service has not yet determined the application or the potential impact of the Standard.

AASB 1053 Application of Tiers of Australian Accounting Standards – This Standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements. The Standard does not have any financial impact on the Service. However, it may affect disclosures if reduced disclosure requirements apply.

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements (AASBs 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050, and 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129, and 1052) – This Standard makes amendments to Australian accounting Standards and

Interpretations to introduce reduced disclosure requirements for certain types of entities. There is no financial impact.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (AASBs 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 and 1038 and Interpretations 2, 5, 10, 12, 19, and 127) – This Standard makes consequential amendments

to other Australian Accounting Standards and Interpretations as a result of issuing AASB in December 2010. It is not anticipated that there will be any financial impact.

AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans Tasman Convergence Project – Reduced Disclosure Requirements (AASBs 101 and 1054) – This Standard makes amendments to introduce reduced disclosure requirements for certain types of entities. There is no expected financial

impact of applying these changes, as the Service is a Tier 1 entity.

AASB 13 Fair Value Measurement – This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value measurements. There is no financial impact.

AASB 119 Employee Benefits – This Standard supersedes AASB 119 Employee Benefits, introducing a number of changes to accounting treatments. The Standard was issued in September 2011. The Service has not yet determined the application or the potential impact of the Standard.

AASB 127 Separate Financial Statements – This standard supersedes requirements under AASB 127 Consolidated and Separate Financial Statements, introducing a number of changes to accounting treatments. The Standard was issued in August 2011. The Service has not yet determined the application or the potential impact of the Standard.


·

·

·

·

·

·

(c) Voluntary Changes in Accounting Policy

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) (AASBs 1, 8, 101, 124, 134, 1049 and 2011 8 and Interpretations 14) – This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 Employee Benefits in September 2011. It is not expected to have a financial impact.

AASB 2011-12 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements – This Standard gives effect to Australian Accounting Standards – Reduced Disclosure Requirements for AASB 119 (September 2011). There is no financial impact.

The Service has not adopted any new accounting policies during the financial year ended 30 June 2012.

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements (AASBs 127, 128 and 131) – This Standard extends relief from consolidation, the equity method and proportionate consolidation by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compliant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity comply with Australian Accounting Standards or Australian Accounting Standards – Reduced Disclosure Requirements. It is not expected to have a financial impact.

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (AASBs 1, 2, 3, 5, 7, 9, 2009 11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 and 1038 and Interpretations 5, 9, 16 and 17) – This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. It is not expected to have a financial impact.

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 (AASBs 1, 2, 3, 4, 5, 7, 9, 2009 11, 2010 7,101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 and 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 and 132) – This Standard replaces the existing definition of fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. There is no expected financial impact.

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income (AASBs 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 and 1049) – This Standard requires to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). It is not expected to have a financial impact.


1.6 Revenue and Other Income from Transactions

(a) Revenue from Government

(b) Grants

(c) Sales of Goods and Services

(d) Interest

(e) Contributions Received

(f) Other Revenue

Services received free of charge by the Service, are recognised as income when a fair value can be reliably determined and at the time the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the Service obtains control of the asset, it is probable that future economic benefits comprising the contribution will flow to the Service and the amount can be measured reliably. However, where the contribution received is from another government agency as a consequence of restructuring of administrative arrangements, where they are recognised as contributions by owners directly within equity. In these circumstances, book values from the transferor agency have been used.

Other revenue is primarily the recovery of costs incurred and is recognised when an increase in future economic benefits relating to an increase in an asset or a decrease of a liability has arisen that can be reliably measured.

Income is recognised in the Statement of Comprehensive Income when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

Appropriations, whether recurrent or capital, are recognised as revenues in the period in which the Agency gains control of the appropriated funds.

Grants payable by the Australian Government are recognised as revenue when the Service gains control of the underlying assets. Where grants are reciprocal, revenue is recognised as performance occurs under the grant.

Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Amounts earned in exchange for the provision of goods are recognised when the significant risks and rewards of ownership have been transferred to the buyer. Revenue from the provision of services is recognised in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to surveys of work performed.

Interest on funds invested is recognised as it accrues using the effective interest rate method.


1.7 Expenses from Transactions

(a) Attributed Employee Benefits

(b) Depreciation and Amortisation

Vehicles 5 years

Plant and equipment 2-20 years

Medical equipment 4-20 years

Buildings 40-50 years

Software 3-5 years

(c) Grants and Subsidies

·

·

(d) Other Expenses

All buildings are depreciated over their remaining useful life.All intangible assets having a limited useful life are systematically amortised over their useful lives reflecting the pattern in which the asset’s future economic benefits are expected to be consumed by the ServiceMajor amortisation periods are:

Grants and subsidies expenditure is recognised to the extent that:

the services required to be performed by the grantee have been performed or

the grant eligibility criteria have been satisfied.

A liability is recorded when the Service has a binding agreement to make the grants but services have not been performed or criteria satisfied. Where grant monies are paid in advance of performance or eligibility, a prepayment is recognised.

Other expenses are recognised when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be reliably measured.

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably.

Attributed employee benefits include, where applicable, entitlements to wages and salaries, annual leave, sick leave, long service leave, superannuation and any other post-employment benefits.

All applicable non-financial assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their service potential. Land, being an asset with an unlimited useful life, is not depreciated.

Depreciation is provided for on a straight line basis, using rates which are reviewed annually. Major depreciation periods are:


1.8 Other Economic Flows Included in Net Result

(a) Gain/(Loss) on Sale of Non-Financial Assets

(b) Impairment – Financial Assets

(c) Impairment – Non-Financial Assets

(d) Other Gains/(Losses) From Other Economic Flows

Other gains/(losses) from other economic flows includes gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present values of

the long service leave liability due to changes in the bond interest rate.

Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.

Gains or losses from the sale of non-financial assets are recognised when control of the assets has passed to the buyer.

Financial assets are assessed at each reporting date to determine whether there is any objective evidence that there are any financial assets that are impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative affect on the estimated future cash flows of that asset.

An impairment loss, in respect of a financial asset measured at amortised cost, is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.


An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost the reversal is recognised in the Statement of Comprehensive Income.

All non‑financial assets are assessed to determine whether any impairment exists. Impairment exists when the recoverable amount of an asset is less than its carrying amount. Recoverable amount is the higher of fair value less costs to sell and value in use. The Service’s assets are not used for the purpose

of generating cash flows; therefore value in use is based on depreciated replacement cost where the asset would be replaced if deprived of it.


In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extend that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.


1.9 Assets

(a) Cash and Deposits

(b) Receivables

(c) Other Financial Assets

(d) Inventories

(e) Assets Held for Sale

(f) Property, Plant and Equipment

Cost includes expenditure that is directly attributable to the acquisition of the asset. The costs of self‑constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Assets are recognised in the Statement of Financial Position when it is probable that the future economic benefits will flow to the Service and the asset has a cost or value that can be measured reliably.

Cash means notes, coins, any deposits held at call with a bank or financial institution, as well as funds held in the Special Deposits and Trust Fund, being short-term of three months or less and highly liquid. Deposits are recognised at amortised cost, being their face value.

Receivables are recognised at amortised cost, less any impairment losses, however, due to the short settlement period, receivables are not discounted back to their present value.

Other financial assets are recorded at fair value and include loan advances and, when in debit, the Tasmanian Ambulance Service Superannuation Scheme.

Inventories held for distribution are valued at cost adjusted, when applicable, for any loss of service potential. Inventories acquired for no cost or nominal consideration are valued at current replacement cost. Inventories held for resale are valued at cost.

Assets held for sale (or disposal groups comprising assets and liabilities) that are expected to be recovered primarily through sale rather than continuing use are classified as held for sale. Immediately before classification as held for sale, the assets (or components of a disposal group) are remeasured in

accordance with the Service’s accounting policies. Thereafter the assets (or disposal group) are measured at the lower of carrying amount and fair value less costs to sell.

(i) Valuation Basis

Land, buildings and other long-lived assets are recorded at fair value less accumulated depreciation. All other non-current physical assets, including work in progress, are recorded at historic cost less accumulated depreciation and accumulated impairment losses.


(g) Intangibles

·

·

(h) Other Assets

Other assets are recorded at fair value and include prepayments.

1.10 Liabilities

it is probable that an expected future benefit attributable to the asset will flow to the Service and

the cost of the asset can be reliably measured.

Intangible assets held by the Service are valued at fair value less any subsequent accumulated amortisation and any subsequent accumulated impairment losses where an active market exists. Where no active market exists, intangible assets held by the Service are valued at cost less any subsequent accumulated amortisation and any subsequent accumulated impairment losses. The asset capitalisation threshold for intangible assets adopted by the Service is $50 000.

Liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably.

(ii) Subsequent Costs

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Service and its costs can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of day-to-day servicing of property, plant and equipment are recognised in the Statement of Comprehensive Income as incurred.

(iii) Asset Recognition Threshold

The asset capitalisation threshold for tangible assets adopted by the Service is $10 000. Assets valued at less than $10 000 (or $50 000 for intangible assets) are charged to the Statement of Comprehensive Income in the year of purchase (other than where they form part of a group of similar items which are material in total).

(iv) Revaluations

The Service’s land and building assets were revalued independently by Opteon Pty Ltd (formally known as Brothers and Newton Pty Ltd) as at 30 June 2012 using adjustment indices based on Australian Bureau of Statistics statistical data, Real Estate Institute of Tasmania median house price data, Rawlinsons Index of construction cost estimates and own sourced research data from the Land Information Systems Tasmania database.

An intangible asset is recognised where:


(a) Payables

(b) Provisions

(c) Employee Benefits

(d) Superannuation

A defined contribution plan is a post‑employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further

amounts. Obligations for contributions to defined contribution plans are recognised as an expense when they fall due.

(ii) Defined Benefit Plans

A defined benefit plan is a post‑employment benefit plan other than a defined contribution plan.

The Service makes contributions in respect of certain employees of Ambulance Tasmania to the Tasmanian Ambulance Service Superannuation Scheme being a defined benefit scheme where members receive lump sum benefits on resignation, retirement, death or invalidity. The scheme is closed to new members. The Service’s superannuation obligations in respect of this scheme are recognised at the latest actuarial assessment of the member’s entitlements, net of scheme assets. Actuarial gains and losses in respect of this scheme are recognised in the Statement of Comprehensive Income.

Actuarial gains or losses arising from the actuarial revaluation of superannuation liabilities are recognised in the Statement of Comprehensive Income.

Payables, including goods received and services incurred but not yet invoiced, are recognised at amortised cost, which due to the short settlement period, equates to face value, when the Service becomes obliged to make future payments as a result of a purchase of assets or services.

A provision arises if, as a result of a past event, the Service has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and the risks specific to the liability. Any right to reimbursement relating to some or all of the provision is recognised as an asset when it is virtually certain that the reimbursement will be received.

Liabilities for wages and salaries and annual leave are recognised when an employee becomes entitled to receive a benefit. Those liabilities expected to be realised within 12 months are measured at the amount expected to be paid. Other employee entitlements are measured as the present value of the benefit at 30 June 2012, where the impact of discounting is material, and at the amount expected to be paid if discounting is not material.

A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date.

(i) Defined Contribution Plans


(e) Other Liabilities

1.11 Leases

1.12 Judgements and Assumptions

·

·

·

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by the Service that have significant effects on the Financial Statements are disclosed in the relevant notes to the Financial Statements. In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following notes:

1.9(f) and 6.5 property, plant and equipment and

1.10(d) and 7.3 superannuation.

1.7(b) depreciation and amortisation

On-costs associated with employee benefits expected to be realised within 12 months are measured at the amount expected to be paid. Other on-costs associated with employee benefits are measured at the present value of the cost at 30 June 2012, where the impact of discounting is material, and at the amount expected to be paid if discounting is not material.

The Service has entered into a number of operating lease agreements for property, plant and equipment, where the lessors effectively retain all the risks and benefits incidental to ownership of the items leased. Equal instalments of lease payments are charged to the Statement of Comprehensive Income over the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

The Service is prohibited by Treasurer’s Instruction 502 - Leases from holding finance leases.

In the application of Australian Accounting Standards, the Service is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

Other liabilities and other financial liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably. Other liabilities include revenue received in advance and on costs associated with employee benefits.

As a consequence of the Treasurer's decision to cease levying payroll tax on agencies from 1 October 2012, other liabilities no longer includes a component relating to a provision for payroll tax associated with employee leave entitlement provisions. Revenue received in advance is measured at amortised cost.


1.13 Foreign Currency

1.14 Comparative Figures

1.15 Rounding

1.16 Departmental Taxation

1.17 Goods and Services Tax

All amounts in the Financial Statements have been rounded to the nearest thousand dollars, unless otherwise stated. Where the result of expressing amounts to the nearest thousand dollars would result in an amount of zero, the financial statement will contain a note expressing the amount to the nearest whole dollar.

The Service is exempt from all forms of taxation except Fringe Benefits Tax, Payroll Tax and the Goods and Services Tax (GST). Levying of Payroll Tax will cease from 1 October 2012 as a result of the Treasurer's decision as detailed in Note 1.10(e).

Revenue, expenses and assets are recognised net of the amount of GST, except where the GST incurred is not recoverable from the Australian Taxation Office. Receivables and payables are stated exclusive of GST.

These judgements relate to adoption of the recommendations by the valuer, Opteon Pty Ltd, in respect of land and building valuations and the recommendations of the State Actuary in respect of the Superannuation liabilities.

The Treasurer has announced the policy decision to cease levying payroll tax on agencies from 1 October 2012. This decision has been factored into the calculation of the employee entitlement provisions and the associated on cost liabilities as at 30 June have been stated, exclusive of payroll tax. The Service has made no other judgements or assumptions that may cause a material adjustment to the carrying amounts of assets and liabilities.

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date.

Comparative figures have been adjusted to reflect any changes in accounting policy or the adoption of new standards. Details of the impact of changes in accounting policy on comparative figures and amendments to comparative figures arising from correction of an error are disclosed at Note 1.5.

Where amounts have been reclassified within the Financial Statements, the comparative statements have been restated.


Note 2 Underlying Net Operating Balance

2012Actual

$'000

2011Actual

$'000


Less impact of Non-operational Capital Funding

Revenue from Special Capital Investment Funds 119 2 210

Total 119 2 210

Underlying Net Operating Balance 1 882 2 075

Note 3 Income from Transactions3.1 Sales of Goods and Services

2012$'000

2011$'000

Ambulance fees 5 747 4 584

Other user charges 631 23

Total 6 378 4 607

3.2 Contributions Received 2012$'000

2011$'000

Fair value of assets assumed at no cost or for nominal consideration 1 768 441

Total 1 768 441

Non-operational capital funding is the income from transactions relating to funding for capital projects. This funding is classified as income from transactions and included in the net operating balance. However, the corresponding capital expenditure is not included in the calculation of the net operating balance. Accordingly, the net operating balance will portray a position that is better than the true underlying financial result.


Contributions received for no cost represent asset expenditure relating to the Ambulance Communications Centre that have

been funded by the Agency.


3.3 Other Revenue2012$'000

2011$'000

Salaries and wages recoveries 1 255 27

Workers compensation recoveries 716 72

Corporate overhead funding 1 145 1 959

Operating recoveries 218 393

Total 3 334 2 451

Note 4 Expenses from Transactions4.1 Employee Benefits

2012$'000

2011$'000

Wages and salaries including FBT 28 650 25 667


Long service leave 550 847

Other post-employment benefits 222 305

Sick leave 1 123 1 035

Other employee expenses - other staff allowances 328 346

Superannuation expenses - defined contribution and benefits schemes 4 018 3 661

Total 37 940 35 042

Superannuation expenses relating to defined contribution schemes are paid directly to nominated superannuation funds at a rate

of nine per cent of salary. In addition, Departments are also required to pay into the SPA a “gap” payment equivalent to

3.3 per cent of salary in respect of employees who are members of contribution schemes.

The increase in salaries and wages recoveries relates to the recovery of Royal Flying Doctors Service costs and the

reimbursement by the Department of Immigration and Citizenship for the cost of increasing the capacity of the

Bridgewater Ambulance Tasmania Station. This is as a consequence of the Pontville Immigration Detention facility.

Workers compensation claims were higher than average throughout 2011-2012 which resulted in an increase in recoveries.

Superannuation expenses for defined benefits schemes relate to payments into the Superannuation Provision Account held

centrally and recognised within the Finance‑General Division of the Department of Treasury and Finance. The amount of the

payment is based on an employer contribution rate determined by the Treasurer, on the advice of the State Actuary. The

current employer contribution is 12.3 per cent of salary.


4.2 Depreciation2012$'000

2011$'000


Buildings 381 287

Total 3 045 2 764

4.3 Supplies and Consumables2012$'000

2011$'000

Consultants 59 475

Property services 735 863

Maintenance 252 260


Information technology 317 633

Travel and transport 2 147 1 976

Medical, surgical and pharmacy supplies 1 064 1 207

Advertising and promotion 9 48

Patient and client services 5 641 4 180

Leasing costs 15 17

Equipment and furniture 1 134 555

Administration 267 179

Food production costs 49 52

Other supplies and consumables 131 129

Corporate overhead charge 2 774 2 669

Service fees 0 18

Audit fees - financial audit 27 15

Total 15 715 13 695

The increase in communications expense relates to payments to the State Fire Commission in respect of the radio

communications network.


4.4 Grants and Subsidies2012$'000

2011$'000

Grant - other 25 25

Total 25 25

4.5 Other Expenses2012$'000

2011$'000

Salary on-costs 2 722 2 857

Tasmanian Risk Management Fund premium 69 73

Other 9 148

Total 2 800 3 078

Note 5 Other Economic Flows Included in Net Result5.1 Net Gain/(Loss) on Non-financial Assets

2012$'000

2011$'000

Impairment of non-financial assets 4 0

Net gain/(loss) on disposal of physical assets 61 50

Total Net Gain/(Loss) on Non-Financial Assets 65 50

2012$'000

2011$'000

Impairment of receivables 22 ( 118)

Total 22 ( 118)

Patient and client services expenditure predominantly relates to costs for patient transfers via the Royal Flying Doctors Service

and payments to the Department of Police and Emergency Management for the use of the emergency services helicopter.

The increase in equipment and furniture relates to the purchase of 99 new stretchers.

5.2 Net Gain/(Loss) on Financial Instruments and Statutory Recievables/Payables

The impairment loss on receivables relates to a general increase in the provision for impairment.


Note 6 Assets6.1 Receivables

2012$'000

2011$'000


Less: Provision for impairment ( 106) ( 254)

Total 5 348 3 215


Total 5 348 3 215

2012$'000

2011$'000

Carrying amount at 1 July 254 188

Amounts written off during the year ( 127) ( 52)

Amounts recovered during the year 1 0

Increase/(decrease) in provision recognised in profit or loss ( 22) 118

Carrying amount at 30 June 106 254

6.2 Loan Advances2012$'000

2011$'000

Loan Advances

Loan advances 0 1

Provision for impairment 0 0

Total 0 1

Settled within 12 months 0 1

Settled in more than 12 months 0 0

Total 0 1

During 2011-2012, a portion of the accounts receivable ledger was assessed as being impaired. The impairment arose as a result

of being long outstanding and assessed as being unlikely to be received, matters in dispute or being assessed for writeoff.

Loan advances relate to university fees paid by the Service and being repaid progressively by employees. Loan advances have

been reclassified as receivables.


6.3 Inventories2012$'000

2011$'000

Medical and pharmacy supplies 524 445

General supplies 32 37

Total 556 482

Utilised within 12 months 556 482

Total 556 482

6.4 Assets Held for Sale2012$'000

2011$'000

Land 50 50

Buildings 49 49

Less: Accumulated depreciation 0 0

Total 99 99


Total 99 99

Inventories relate to stocks held for distribution at no or nominal consideration, predominantly at hospitals, in the ordinary

course of operations as detailed above.


6.5 Property, Plant and Equipment

(a) Carrying Amount

2012$'000

2011$'000

Land

Service land at fair value as at 30 June 6 973 7 234

Less: Provision for impairment 0 0

Total 6 973 7 234

Buildings

Service buildings at fair value as at 30 June 16 304 12 140

Less: Accumulated depreciation ( 61) ( 23)

16 243 12 117

Work in progress (at cost) 1 009 3 047

Total 17 252 15 164

Total Buildings 17 252 15 164

Plant, Equipment and Vehicles

At cost 21 747 19 963

Less: Accumulated depreciation ( 12 833) ( 10 791)

8 914 9 172

Work in progress (at cost) 21 1 510

Total 8 935 10 682

Total property, plant and equipment 33 160 33 080


The Service’s land and building assets were revalued independently by Opteon Pty Ltd (formally known as Brothers and Newton

Pty Ltd) as at 30 June 2012 using adjustment indices based on Australian Bureau of Statistics statistical data, Real Estate Institute

of Tasmania median house price data, Rawlinsons Index of Construction cost estimates and own sourced research data from the

Land Information Systems Tasmania database.

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below. Carrying value means the net amount after deducting accumulated depreciation and accumulated impairment losses.


2012 Land$'000

Buildings$'000

Plant equipment

and vehicles$'000

Building works in progress

$'000

Total$'000

Carrying value at 1 July 7 234 12 117 10 682 3 047 33 080

Additions 0 4 184 2 453 0 6 637

Disposals 0 0 ( 48) 0 ( 48)

Revaluation increments (decrements) ( 261) 319 0 0 58

Impairment losses 0 4 0 0 4

Net transfers 0 0 ( 1 489) ( 2 426) ( 3 915)

Work in progress at cost 0 0 0 388 388

Depreciation 0 ( 381) ( 2 664) 0 ( 3 045)

6 973 16 243 8 934 1 009 33 159

2011 Land$'000

Buildings$'000

Plant equipment

and vehicles$'000

Building works in progress

$'000

Total$'000

Carrying value at 1 July 7 461 10 178 10 297 1 832 29 768

Additions 0 0 1 434 0 1 434

Disposals 0 0 ( 82) 0 ( 82)

Revaluation increments (decrements) ( 257) 476 0 0 219

Assets held for sale ( 50) ( 49) 0 0 ( 99)

Net transfers 80 1 799 0 ( 1 879) 0

Work in progress at cost 0 0 1 510 3 094 4 604

Depreciation 0 ( 287) ( 2 477) 0 ( 2 764)

7 234 12 117 10 682 3 047 33 080Carrying value at 30 June



6.6 Intangibles

(a) Carrying Amount

2012$'000

2011$'000

Intangibles with a Finite Useful Life


Less: accumulated amortisation 0 0

Total 0 0

Intangibles with an Infinite Useful Life



Total 0 0

Capital Work in progress 126 41

Total Intangibles 126 41


2012$'000

2011$'000

Carrying Amount at 1 July 41 0

Intangible assets - purchases 0 0

Transfers from plant and equipment 85 0

Work in progress at cost 0 41

Amortisation - intangible assets 0 0

Carrying Amount at 30 June 126 41

Intangible assets with a finite useful life held by the Service principally comprise of computer software.

The work in progress for intangible assets represents expenditure for the In Vehicle Information System (IVIS).


6.7 Other Assets

(a) Carrying Amount

2012$'000

2011$'000

Prepayments 98 236

Total 98 236

Utilised within 12 months 98 236

Utilised in more than 12 months 0 0

98 236


2012$'000

2011$'000

Carrying Amount at 1 July 236 0

Additions 98 236

Utilised ( 236) 0

Carrying Amount at 30 June 98 236

Note 7 Liabilities7.1 Payables

2012$'000

2011$'000

Creditors 147 624

Accrued expenses 566 0

Total 713 624


Total 713 624

The Prepayment relates to the first instalment for the provision of 2012-2013 services under the radio maintenance agreement

with the State Fire Commission. Prepayments are generally utilised within 12 months.


7.2 Employee Benefits2012$'000

2011$'000

Accrued salaries 688 412



Total 9 868 9 151



Total 9 868 9 151

7.3 Superannuation

(a) Type of Plan

The increase in employee benefits, notwithstanding the reduction in numbers of employees, has occurred due to the reduction in

market interest rates and correspondingly the rate used for discounting employee leave entitlements.


The Tasmanian Ambulance Service Superannuation Scheme (TASSS) balances reported are provided in respect of those employees who are defined benefit members.

The State Actuary undertook a revaluation of the present value of the benefit obligation and the fair value of the plan assets as at 30 June 2012 using the process outlined in Australian Accounting Standards Board Standard 119 Employee Benefits. As a result of the revaluation it was determined that the TASSS

was in deficit by $11.8 million (in 2011, $3.18 million deficit). The movement over the financial year was primarily caused by an actuarial loss.


(b) Superannuation Liability

Present value of gross liability 50 901 40 658

Fair value of plan assets ( 39 075) ( 37 481)

11 826 3 177

Present value of unfunded liability 11 826 3 177

(Surplus)/Deficit 11 826 3 177

Net actuarial gains not recognised 0 0

Restrictions on assets recognised 0 0

Total 0 0



Total 11 826 3 177

(c) Amounts Recognised in Comprehensive Income

Net Result from Transactions

Current service cost 1 909 1 591

Interest cost 1 830 1 628

Expected return on plan assets ( 2 548) ( 2 319)

1 191 900


Actuarial (gains)/losses 8 902 2 505

0 0

Total 10 093 3 405

Adjustments for restrictions on the defined benefit asset

The current service cost, interest cost and expected return on plan assets have been included in the employee entitlements

expense in the Statement of Comprehensive Income.

Tasmanian Ambulance Service Superannuation Scheme 2012$'000

Tasmanian Ambulance Service Superannuation Scheme 2012$'000

2011$'000

2011$'000


7.4 Other Liabilities2012$'000

2011$'000

Revenue Received in Advance

30 0

Revenue Received in Advance (SCIF) 0 3

Other Liabilities

Employee benefits - on-costs 187 680

Total 217 683


Settled in more than 12 months 34 487

Total 217 683

Attributed appropriation carried forward from current and previous years under section 8A(2) of the

Public Account Act 1986


Note 8 Commitments and Contingencies8.1 Schedule of Commitments

2012$'000

2011$'000

By Type

Operating lease commitments

Motor vehicles 813 1 402

Information technology 7 0

Total lease commitments 820 1 402

Other commitments

RFDS air ambulance standing charge 19 261 1 162

Miscellaneous goods and services contracts 1 909 1 086

Total other commitments 21 170 2 248

Total 21 990 3 650

By Maturity

Operating lease commitments

One year or less 400 852

From one to five years 420 550

More than five years 0 0

Total operating lease commitments 820 1 402

Other commitments



More than five years 8 327 25

Total other commitments 21 170 2 248

Total 21 990 3 650


Miscellaneous goods and services contracts include commitments under the Tasmanian Fire Service Radio Maintenance Contract.

Motor Vehicles (Operating Lease)

The Service's Motor Vehicle Fleet is managed by LeasePlan Australia as part of a Whole-of-Government arrangement with the Department of Treasury and Finance as lessor. Lease payments vary according to the type of vehicle and, where applicable, the price received for trade-in vehicles. Lease terms for the majority of existing vehicles are for a period of two years or 40 000 kilometres, whichever comes first, with no change to the lease rate. New vehicle leases are for a period of three years. No restrictions or purchase options are contained in the lease. The 2012 commitment was calculated on the basis of the monthly lease payment plus registration cost of existing vehicles leased as at 30 June 2012. The cost of leases has decreased due to the usage of 12 months worth of current leases.

Information Technology

Information Technology commitments relate to software licence commitments.

RFDS Air Ambulance Standing Charge

The Royal Flying Doctor Service (RFDS) air ambulance standing charge covers availability of the aircraft and a back up aircraft with pilots available 24 hours a day with other fixtures including a hanger. It does not include variable costs such as flying hours and aviation charges. For the 2010-2011 Financial Statements the commitment was calculated as a six month commitment because a new tender was in progress. As at 30 June 2012, a new contract covering the period up to 30 June 2020 has been signed.

Miscellaneous Goods and Services Contracts


Note 9 Reserves9.1 Reserves

2012Total$'000


Balance at the beginning of financial year 16 674

Revaluation increments/(decrements) 58

Balance at End of Financial Year 16 732

2011Total$'000


Balance at the beginning of financial year 16 455

Revaluation increments/(decrements) 219

Balance at End of Financial Year 16 674


The Asset Revaluation Reserve is used to record increments and decrements on the revaluation of non‑financial assets, as described in Note 1.9 (f).




Statement of Certification

DHHS Annual Report 2011-2012 Page 354 of 355

Acronyms AAS Australian Accounting Standards

AASB Australian Accounting Standards Board

ABS Australian Bureau of Statistics

AIHW Australian Institute for Health and Welfare

CEO Chief Executive Officer

CHAPS Child Health and Parenting Services

COAG Council of Australian Governments

CPI Consumer Price Index

DFA Disability Framework for Action 2005-2010

DHHS Department of Health and Human Services

ED Emergency Department

FTE Full-time Equivalent

GP General Practitioner

GST Goods and Services Tax

HACC Home and Community Care

HOAP Home Ownership Assistance Program

IFRS International Financial Reporting Standards

LGH Launceston General Hospital

MCH Mersey Community Hospital

NWRH North West Regional Hospital

PRSS Private Rental Support Scheme

RBF Retirement Benefits Fund

RHH Royal Hobart Hospital

SAAP Supported Accommodation Assistance Program

SAMP Strategic Asset Management Plan

SEIFA Socio-Economic Indexes for Areas

SPA Superannuation Provision Account

TAHL Tasmanian Affordable Housing Limited

TASSS Tasmanian Ambulance Service Superannuation Scheme

THO-N Tasmanian Health Organisation – North

THO-NW Tasmanian Health Organisation – North West

THO-S Tasmanian Health Organisation – South

THP Tasmania’s Health Plan

TRMF Tasmanian Risk Management Fund

DHHS Annual Report 2011-2012 Page 355 of 355

Contacting the Department of Health and Human Services Corporate Office

Street Address: 34 Davey Street

Hobart TAS 7000

Postal Address: GPO Box 125

Hobart TAS 7001

Internet Email: www.dhhs.tas.gov.au/contact

Telephone Reception: (03) 6233 4712

General Enquiries

Service Tasmania operates one number for the Government which directs calls to the appropriate area within the State Government. Simply call 1300 135 513 to contact the area of the Agency that you require.

Documents

Part 4 Financial Statements - Department of Health and … · Part 4 Financial Statements Department of Health and Human Services ... Statement of Changes in Equity for the Year Ended