National Health Funding Body Financial Statements for the year
ended 30 June 2013

Independent Auditor’s Report

Auditor sign-off (D14-5932)
Auditor sign-off (D14-5932)

STATEMENT BY THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2014 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

Signed

–Signature omitted–
Lynton Norris
Chief Executive Officer
9 October 2014
–Signature omitted —
Naini Singh
Chief Financial Officer
9 October 2014
National Health Funding Body Statement of Comprehensive Income for the period ended 30 June 2013
Notes 2014$ 2013$
EXPENSES

Employee benefits

3A

(2,489,145)

(1,825,007)

Suppliers

3B

(1,677,921)

(3,338,896)

Write–down of impairment of assets — Long Service Leave Debtor

3C

(16,250)

Total Expenses (4,183,316) (5,163,903)
LESS:
Own-source Income
Gains

Other gains

4A

40,000

32,000

TOTAL GAINS 40,000 32,000
TOTAL OWN-SOURCE INCOME 40,000 32,000
NET (COSTS OF)/CONTRIBUTION BY SERVICES (4,143,316) (5,131,903)

Revenue from Government

4B

4,360,000

5,520,000

Surplus attributable to the Australian Government

OTHER COMPREHENSIVE INCOME

Total comprehensive income attributable to the Australian Government

The above statement should be read in conjunction with accompanying notes.

National Health Funding BodyStatement of Financial Position for the period ended 30 June 2014
Notes 2014$ 2013$
ASSETS
Financial Assets

Cash and cash equivalents

5A

12,000

Trade and other receivables

5B

1,280,964

5,657,392

TOTAL FINANCIAL ASSETS 1,292,964 5,657,392
Non-Financial Assets

Other non–financial assets

6

5,400

TOTAL NON-FINANCIAL ASSETS

5,400

TOTAL ASSETS

1,298,364

5,657,392

LIABILITIES
Payables

Suppliers

7A

(193,754)

(4,993,758)

Other payables

(66,463)

(80,513)

TOTAL PAYABLES

(260,217)

(5,074,271)

Provisions

Employee provisions

8A

(433,366)

(195,024)

TOTAL PROVISIONS

(433,366)

(195,024)

TOTAL LIABILITIES

(693,583)

(5,269,295)

NET ASSETS
EQUITY

Retained surplus

604,781

388,097

The above statement should be read in conjunction with accompanying notes.

National Health Funding Body Statement of Changes in Equity for the period ended 30 June 2014

Retained earnings

Asset revaluation surplus

Contributed equity/capital

Total equity

2014 $

2013 $

2014 $

2013 $

2014 $

2013 $

2014 $

2013 $

Opening balance

Balance carried forward from previous period

388,097

388,097

ADJUSTED OPENING BALANCE

388,097

388,097

Comprehensive Income

Surplus for the period

216,684

388,097

216,684

388,097

TOTAL COMPREHENSIVE INCOME

216,684

388,097

216,684

388,097

CLOSING BALANCE ATTRIBUTABLE TO THE AUSTRALIAN GOVERNMENT

604,781

388,097

604,781

388,097

The above statement should be read in conjunction with accompanying notes.

National Health Funding BodyCash Flow Statement for the period ended 30 June 2014
Notes 2014 2013$
OPERATING ACTIVITIES
Cash received

Appropriations

8,614,079

Net GST received

94,165

58,805

Other

116,679

TOTAL CASH RECEIVED

8,824,923

58,805

Cash used

Employees

(2,186,266)

(8,742)

Suppliers

(6,400,770)

(50,063)

Section 31 receipts transferred to OPA

(225,887)

TOTAL CASH USED

(8,812,923)

(58,805)

NET CASH FROM OPERATING ACTIVITIES

9

12,000

NET INCREASE (DECREASE) IN CASH HELD)

12,000

Cash and cash equivalents at the beginning of the reporting period

CASH AND CASH EQUIVALENTS AT THE END OF THE REPORTING PERIOD

5A

12,000

The above statement should be read in conjunction with accompanying notes.

National Health Funding Body Schedule of Commitments for the period ended 30 June 2014

2014 $

2013 $

BY TYPE

Commitments receivable

Net GST receivable on commitments

247,029

22,781

Total commitments receivable

247,029

22,781

Commitments Payable

Operating Leases1

(2,083,161)

Other2

(691,814)

(227,810)

Total other commitments

(2,774,975)

(227,810)

BY MATURITY

Other commitments receivable

Within one year

71,771

22,781

From one to five years

175,258

Over five years

Total Other receivable on commitments

247,029

22,781

Total Commitment Receivable

247,029

22,781

Commitments payable

   

Operating Lease Commitments

One year or less

(374,946)

From one to five years

(1,708,215)

Over five years

Total operating lease commitments

(2,083,161)

Other Commitments

One year or less

(452,224)

(227,810)

From one to five years

(239,590)

Over five years

Total other commitments

(691,814)

(227,810)

Total commitments payable

(2,774,974)

(227,810)

Note: Commitments are GST inclusive where relevant.

1 The NHFB took over the lease of a new premises from 1 July 2014. The lease is for a period of five years, expiring on the 31st of August 2019 and has a fixed 4% increase each year.

2 Other commitments payable, comprises amounts committed under signed agreements where the contracted organisation has yet to perform the services required.

This schedule should be read in conjunction with the accompanying notes.

National Health Funding Body Notes to and forming part of the Financial Statements for the period ended 30 June 2014

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the National Health Funding Body

The National Health Funding Body (NHFB) is an Australian Government controlled not–for–profit entity. The NHFB was established on 1 July 2012.

The NHFB’s roles and functions are set out in the National Reform Act 2011. The objective of the NHFB is to assist the Administrator of the National Health Funding Pool to:

  • calculate the Commonwealth contribution to the National Health Funding Pool;
  • develop the Three Year Data Plan and associated funding reconciliation frameworks;
  • ensure the National Health Funding Pool operations are in accordance with directions from the responsible state or territory Minister, and in line with the National Health Reform Agreement (NHRA);
  • authorise payment instructions in accordance with directions from the responsible state or territory Minister, and in line with the NHRA ensure public hospitals receive funding based on need; and
  • transparently report on the operations of the National Health Funding Pool and State Managed Funds as outlined in the NHRA.

NHFB is structured to meet one outcome:

Outcome 1: Provide transparent and efficient administration of Commonwealth, state and territory funding of the Australian public hospital system, and support the obligations and responsibilities of the Administrator of the National Health Funding Pool.

The NHFB activities contributing to this outcome are classified as Departmental. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the NHFB in its own right.

The NHFB does not conduct any administered activities on behalf of the Government.

The Australian Government continues to have regard to developments in case law, including the High Court’s recent decision on Commonwealth expenditure in Williams v Commonwealth (2014) HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

The continued existence of the NHFB in its present form and within its present programs is dependent on Government policy and continuing funding by Parliament for the NHFB’s administration and programs. The 2014–15 Budget proposes the merger of the NHFB with a number of other Commonwealth entities to create a new Health Productivity and Performance Commission. This is subject to consultation with the States and Territories and currently no details are provided on the role or timeframe for creation of the merge entitiy.

1.2 Basis of preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by s.49 of the Financial Management and Accountability Act 1997.

The financial statements have been prepared in accordance with:

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

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

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

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the NHFB or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

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

1.3 Significant accounting judgments and estimates

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

1.4 New Australian accounting standards

Adoption of New Australian accounting standard requirements
The following new standards, revised standards, interpretations and amending standards were issued by the Australian Accounting Standards Board and apply to the current reporting period:
Adoption of new Australian accounting standard requirements

Standard / Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 13

Fair Value Measurement — December 2012 (Principal) — this will result in an increased level of disclosure for items carried at fair value.

AASB 119

Employee Benefits — September 2011 (Principal) — this will result in an increased level of disclosure.

AASB 2011–8

Amendments to Australian Accounting Standards arising from AASB 13

AASB 2011–10

Amendments to Australian Accounting Standards arising from AASB 119

Future Australian accounting standard requirements

The following new standards, revised standards, interpretations and amending standards were issued by the Australian Accounting Standards Board prior to the sign–off date and apply to the future reporting period, they are not expected to have a financial impact on the NHFB:

Future Australian accounting standard requirements

Standard / Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 1055

Budgetary Reporting — March 2013 (Principal) — this new requirement will require the NHFB to explain significant variances between budget and actual expenditure

AASB 9

Financial Instruments — may impact on recognition and measurement of financial instruments

AASB 2012–3

Amendments to Australian Accounting Standards — Offsetting Financial Assets and Liabilities (AASB 132) — this is expected to have a minimal impact on the NHFB’s financial statements.

AASB 2010–7

Amendments to Australian Accounting Standards arising from AASB 9

AASB 2012–2

Amendments to Australian Accounting Standards — Disclosures — Offsetting Financial Assets and Financial Liabilities (AASB7 and AASB 132) — this is not expected to have an impact on the NHFB’s financial statements.

AASB 2012–3

Amendments to Australian Accounting Standards — Offsetting Financial Assets and Financial Liabilities (AASB 132) — this is not expected to have an impact on the NHFB’s financial statements.

1.5 Revenue

Revenue from Government

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

1.6 Gains

Resources received free of charge

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

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

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

1.7 Transactions with the Government as owner

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCB) are recognised directly in contributed equity in that year. The NHFB has not received any DCB.

1.8 Employee benefits

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

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

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

Leave

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

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

The estimate of the present value of the liability takes into account attrition rates, pay increases and inflation.

Superannuation

Staff of the NHFB are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or employee nominated superannuation funds.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and employee nominated superannuation funds are defined contribution schemes.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance’s administered schedules and notes.

The NHFB makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The NHFB accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.9 Leases

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

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

The NHFB had not entered into any operating leases as at 30 June 2014.

1.10 Cash

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

  • cash on hand.

1.11 Financial assets

NHFB classifies its financial assets as loans and receivables.

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

Effective Interest Method

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

Income is recognised on an effective interest rate basis.

Loans and Receivables

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

Impairment of financial assets

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

1.12 Property, plant and equipment

Under the ‘shared services arrangements’ with the Department of Health all IT, infrastructure and major office equipment is provided to the NHFB. Other Property, Plant and Equipment purchased by NHFB have not been capitalised as at 30 June 2014, as they are low value items.

1.13 Financial liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

1.14 Contingent assets and liabilities

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

1.15 Taxation

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

Revenues, expenses, assets and liabilities are recognised net of GST except:

  1. where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  2. for receivables and payables.

1.16 Fair value measurement

NHFB’s financial assets and liabilities are measured at nominal amounts or amortised cost. No fair value measurement disclosures are required.

Note 2: Events After the Reporting Period

There are no events after the reporting period affecting the financial statements.

Note 3: Expenses

2014 $

2013 $

Note 3A: Employee Benefits

Wages and salaries

(1,724,996)

(1,305,387)

Superannuation:

Defined contribution plans

(298,211)

(219,141)

Defined benefit plans

(11,541)

(11,955)

Leave and other entitlements

(454,397)

(288,524)

Total employee benefits

(2,489,145)

(1,825,007)

Note 3B: Suppliers

   

Goods and services

   

Consumables, printing, recruitment and training

(121,342)

(78,144)

Contractors

(956,804)

(2,561,831)

Information technology and communications

(153,214)

(63,372)

Professional fees

(69,613)

(103,648)

Property and utilities

(178,137)

(218,253)

Travel

(76,135)

(107,188)

Other

(73,369)

(175,634)

Total goods and services

(1,628,614)

(3,308,070)

Goods and services are made up of

   

Provision of goods — external parties

(18,635)

(26,609)

Rendering of services — related parties

(698,122)

(776,735)

Rendering of services — external parties

(911,857)

(2,504,726)

Total goods and services

(1,628,614)

(3,308,070)

Other supplier expenses

Workers compensation expenses

(49,307)

(30,826)

Total other supplier expenses

(49,307)

(30,826)

Total supplier expenses

(1,677,921)

(3,338,896)

Note 3C: Write–Down and Impairment of Assets

Other — Write–down of other receivables

(16,250)

Total write–down and impairment of assets

(16,250)

Note 4: Income

2014 $

2013 $

OWN–SOURCE REVENUE

   

Gains

   

Note 4A: Other Gains

Resources received free of charge

40,000

32,000

Total other gains

40,000

32,000

Note 4B: Revenue from Government

   

Appropriations

Departmental appropriations

4,360,000

5,520,000

Total revenue from Government

4,360,000

5,520,000

Note 5: Financial Assets

2014$

2013$

Note 5A: Cash and Cash Equivalents

   

Cash on hand or on deposit1

12,000

Total cash and cash equivalents

12,000

Note 5B: Trade and Other Receivables

   

Good and Services:

Goods and services — related parties

78,587

Goods and services — external parties

15,070

Total receivables for goods and services

15,070

78,587

Appropriations receivable:

For existing program — receivable from the Official Public Account

1,265,921

5,520,000

Total appropriations receivable

1,265,921

5,520,000

Other receivables:

GST receivable from the Australian Taxation Office

15,043

58,805

Total other receivables

15,043

58,805

Total trade and other receivables (gross)

1,296,034

5,657,392

Less impairment allowance

Goods and services

(15,070)

Total impairment allowance

(15,070)

Total trade and other receivables (net)

1,280,964

5,657,392

Receivables are expected to be recovered in:

No more than 12 months

1,280,964

5,657,392

More than 12 months

Total trade and other receivables

1,280,964

5,657,392

Receivables are aged as follows:

   

Not overdue

1,280,964

5,657,392

Overdue by:

0 to 30 days

31 to 60 days

61 to 90 days

15,070

More than 90 days

Total receivables

1,296,034

5,657,392

Impairment allowance aged as follows:

Not overdue

Overdue by:

0 to 30 days

31 to 60 days

61 to 90 days

(15,070)

More than 90 days

Total impairment allowance

(15,070)

Credit terms for goods and services were within 30 days.

1 For the year ended 30 June 2013, the NHFB had no cash at bank as it did not draw down any appropriation. A transfer under s32 of the FMA Act from the Department of Health occurred on the 24 June 2013, as a result all of the 2012–13 Departmental appropriation has been recognised as a receivable from the Official Public Account. As the NHFB had no funding during the 2012–13 year, the departmental expenditure was incurred by the Department of Health on behalf of the NHFB under a shared services arrangement. Hence, a payable has been recognised to reimburse the Department of Health, refer to note 7A.

Reconciliation of the Impairment Allowance Movements in relation to 2013–14

Goods and Services $’000

Total $’000

Opening Balance

Amounts written off

(15,070)

Closing Balance

(15,070)

Note 6: Non–Financial Assets

2014 $

2013 $

Note 6: Other Non–Financial Assets

   

Prepayments

5,400

Total other non–financial assets

5,400

Total other non–financial assets — are expected to be recovered in:

 

No more than 12 months

5,400

More than 12 months

Total other non–financial assets

5,400

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

Note 7: Payables

2014 $

2013 $

Note 7A: Suppliers

Trade creditors and accruals

(193,754)

(4,993,758)

Total supplier payables

(193,754)

(4,993,758)

Supplier payables expected to be settled within 12 months:

 

Related parties1

(84,712)

(4,375,667)

External parties

(109,042)

(618,091)

Total

(193,754)

(4,993,758)

Settlement was usually made within 30 days.

Note 7B: Other Payables

Wages and salaries

(56,492)

(73,295)

Superannuation

(9,971)

(7,218)

Total other payables

(66,463)

(80,513)

Total other payables are expected to be settled in:

No more than 12 months

(66,463)

(80,513)

Total other payables

(66,463)

(80,513)

1 For the year ended 30 June 2014 and 30 June 2013, these amounts relate to payables to the Department of Health under a shared services arrangement and some small payables to other Commonwealthgovernment agencies.

Note 8: Provisions

2014 $

2013 $

Note 8A: Employee Provisions

 

Leave

(433,366)

(195,024)

Total employee provisions

(433,366)

(195,024)

Employee provisions are expected to be settled in:

 

No more than 12 months

(245,830)

(156,595)

More than 12 months

(187,536)

(38,429)

Total employee provisions

(433,366)

(195,024)

Note 9: Cash Flow Reconciliation

2014 $

2013 $

Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement

 

Cash and cash equivalents as per

Cash flow statement

12,000

Statement of financial position

12,000

Difference

Reconciliation of net cost of services to net cash from operating activities

Net cost of services

(4,143,316)

(5,131,903)

Add revenue from Government

4,360,000

5,520,000

Changes in assets / liabilities

(Increase) / decrease in net receivables

4,376,428

(5,657,392)

(Increase) / decrease in prepayments

(5,400)

Increase / (decrease) in employee provisions

238,342

195,024

Increase / (decrease) in supplier payables

(4,800,004)

4,993,758

Increase / (decrease) in other payables

(14,050)

80,513

Net cash from (used by) operating activities

12,000

Note 10: Contingent Assets and Liabilities

Quantifiable Contingencies

As at 30 June 2014, the NHFB had no quantifiable contingencies. (2013: Nil).

Unquantifiable Contingencies

As at 30 June 2013, the NHFB had entered into an arrangement for an indemnity with the New South Wales Health Administration Council (HAC). No change has occurred during the 2013–14 and this remains current.

Under the National Health Reform Agreement (NHRA), each of the States agreed to open a Reserve Bank of Australia (RBA) account (a ‘State pool account’) for the purpose of receiving all Commonwealth and activity–based State public hospital funding. The Administrator of the National Health Funding Pool (the Administrator) is responsible for making payments from each State pool account, at the direction of each State Health Minister. This process is supported by the NHFB.

The HAC is a statutory body whose functions include entering into contracts to support the functions of the NSW Minister for Health. HAC has a banking contract for its Pool account with the RBA. HAC has provided the RBA with an indemnity that places obligations upon HAC to accept risks on persons not in its direct control, being the staff of the NHFB. The HAC has in turn sought a ‘back to back’ indemnity from the Commonwealth. The indemnity is limited to cover the actions of NHFB staff in their capacity as users of Pool account information.

The most probable cost of the indemnity if called upon would be over $20,000,000 (inclusive of GST).

A risk assessment has been undertaken in accordance with the Department of Finance’s Guidelines for Issuing and Managing Indemnities, Guarantees, Warranties and Letters of Comfort. The contingent liability includes risks which are assessed as being significant or non–remote. The NHFB will make every effort to limit the risk to the Commonwealth under the arrangement through the adoption and implementation of appropriate risk management procedures.

Significant Remote Contingencies

As at 30 June 2014, the NHFB had no significant remote contingencies. (2013: Nil).

Note 11: Senior Executive Remuneration

2014 $

2013 $

Note 11A: Senior Executive RemunerationExpenses for the Reporting Period

   

Short–term employee benefits:

 

Salary

293,442

320,734

Other

71,984

62,241

Total short–term employee benefits

365,426

382,975

Post–employment benefits:

Superannuation

49,874

40,841

Total post–employment benefits

49,874

40,841

Other long–term benefits:

Annual leave accrued

22,578

18,171

Long–service leave

25,084

3,233

Total other long–term benefits

47,662

21,404

Termination benefits

Total employment benefits

462,962

445,220

Note 11A is prepared on an accruals basis. Hence, the figures are different from Note 11B which is prepared on a cash basis. No bonuses have been paid to the senior executives.

Note 11: Senior Executive Remuneration (continued)

Note 11B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period

Average annual reportable remuneration¹

Senior ExecutivesNo.

Reportable salary2 $

Contributed superannuation3 $

Reportable allowances4 $

Bonus paid5 $

Total reportable remuneration$

Average annual reportable remuneration paid to substantive senior executives in 2014

Total remuneration (including part–time arrangements):

Less than $195,000

1

160,786

23,144

387

184,317

$225,000 to $254,999

1

204,432

25,087

229,519

Total

2

Average annual reportable remuneration¹

Senior ExecutivesNo.

Reportable salary2$

Contributed superannuation3$

Reportable allowances4$

Bonus paid5$

Total reportable remuneration$

Average annual reportable remuneration paid to substantive senior executives in 2013

Total remuneration (including part–time arrangements):

$195,000 to $224,999

2

188,081

19,950

193

208,224

Total

2

Notes:

2 ‘Reportable salary’ includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column); b) reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits); c) exempt foreign employment income; and d) salary sacrificed benefits.

3 The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individual’s payslips.

4 ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

5 No bonuses were paid to the senior executives.

Note 11C: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff During the Reporting Period During the reporting period, there were no other highly paid staff whose salary was $195,000 or more. (2013: Nil).

Note 12: Remuneration of Auditors

2014 $

2013 $

Financial statement audit services were provided free of charge to the NHFB by the Australian National Audit Office (ANAO).

Fair value of the services provided

 

Financial statement audit services

40,000

32,000

No other services were provided by the auditors of the financial statements.

Note 13: Financial Instruments

2014 $

2013 $

Note 13A: Categories of Financial Instruments

   

Financial Assets

Loans and Receivables

Cash and Equivalents

12,000

Trade and other receivables

78,587

Total

12,000

78,587

Carrying amount of financial assets

12,000

78,587

Financial Liabilities

At amortised cost:

Trade creditors and accruals

(193,754)

(4,993,758)

Total

(193,754)

(4,993,758)

Carrying amount of financial liabilities

(193,754)

(4,993,758)

Note 13B: Net Income and Expense from Financial Assets

There is no income or expense from financial assets in 2013–14. (2012–13: Nil).

Note 13C: Net Income and Expense from Financial Liabilities

There is no net income or expense from financial liabilities in 2013–14. (2012–13: Nil).

Note 13D: Fair Value of Financial Instruments

Note 13D: Fair Value of Financial Instruments

 

Carrying amount 2014 $

Fair value 2014 $

Carrying amount 2013 $

Fair value 2013 $

Financial Assets

       

Loan and Receivables:

 

Cash and cash equivalents

12,000

12,000

Trade and other receivables

78,587

78,587

Total

12,000

12,000

78,587

78,587

Financial Liabilities

       

Trade creditors and accruals

(193,754)

(193,754)

(4,993,758)

(4,993,758)

Total

(193,754)

(193,754)

(4,993,758)

(4,993,758)

Note 13E: Credit Risk

NHFB is exposed to minimal credit risk as receivables were cash and other receivables. The maximum exposure to credit risk for other receivables is the risk that arises from potential default of a debtor. This amount was equal to the total amount of trade receivables 2013–14: $0. (2012–13: $78,587). The NHFB has endorsed policies and procedures for debt management, to reduce the incidence of credit risk. NHFB has no significant exposures to any concentrations of credit risk.

No collateral is held in relation to the NHFB’s gross credit risk.

Credit quality of financial instruments not past due or individually determined as impaired

Credit quality of financial instruments not past due or individually determined as impaired

 

Not past due or impaired 2014 $

Not past due or impaired 2013 $

Past due or impaired 2014 $

Past due or impaired 2013 $

Receivables for goods and services

78,587

15,070

Trade Debtors and receivables that are past due are not considered as risky in both credit risk and quality.

Ageing of financial assets that were past due but not impaired for 2014

Ageing of financial assets that were past due but not impaired for 2014

 

0 to 30 days $

31 to 60days $

61 to 90days $

90+ days $

Total

Receivables for goods and services

There are no financial assets which have been individually assessed as impaired.

Ageing of financial assets that were past due but not impaired for 2013

Ageing of financial assets that were past due but not impaired for 2013

 

0 to 30 days $

31 to 60days $

61 to 90days $

90+ days $

Total

Receivables for goods and services

There are no financial assets which have been individually assessed as impaired.

Note 13F: Liquidity Risk

The NHFB’s financial liabilities only include suppliers. Any exposure to liquidity risk is based on the notion that the NHFB will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding from the Australian Government and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

Maturities for non–derivative financial liabilities 2014

Maturities for non–derivative financial liabilities 2014

 

On demand $

within 1 year $

1 to 2 years $

2 to 5 years $

> 5 years $

Total $

Suppliers

(193,754)

Maturities for non–derivative financial liabilities 2013

Maturities for non–derivative financial liabilities 2013

 

On demand $

within 1 year $

1 to 2 years $

2 to 5 years $

> 5 years $

Total $

Suppliers

(4,993,758)

13G: Market Risk

The NHFB does not participate in any currency dealings including foreign exchange and as such is not exposed to market risk. The NHFB also only has indirect exposure in interest rates and as such the impact on supplier costs is not significant.

Note 14: Financial Assets Reconciliation

Notes

2014 $

2013 $

Financial Assets

 

Less: non–financial instrument components:

Appropriations receivable

5B

1,265,921

5,520,000

GST Receivable from the Australian Taxation Office

5B

15,043

58,805

Total non–financial instrument components

1,280,964

5,578,805

Total financial assets as per financial instruments note

12,000

78,587

Note 15: Appropriations

Table A — Annual Appropriations (‘Recoverable GST exclusive)

2014 Appropriations

Appropriation applied in 2014 (current and prior years)$

Variance1 $

Appropriation Act

FMA Act

Total Appropriation $

Annual Appropriation$

Appropriations reduced$

Section 30$

Section 31$

Section 32$

DEPARTMENTAL

Ordinary annual services

4,360,000

116,679

4,476,679

(8,730,758)

(4,254,079)

2013 Appropriations
 

2013 Appropriations

Appropriation applied in 2013 (current and prior years)$

Appropriation Act

FMA Act

Total Appropriation $

Annual Appropriation $

Appropriations reduced $

Section 30 $

Section 31 $

Section 322 $

DEPARTMENTAL

Ordinary annual services

5,520,000

5,520,000

5,520,000

1 The variance of $4,254,079 is due to the NHFB drawing down on its prior year appropration during 2013–14 to pay its 2012–13 trade creditors and accruals.

2 A Determination under s 32 of the Financial Management and Accountability Act 1997 was registered on 24 June 2013 resulting in the transfer of funds from the Department of Health and Ageing to NHFB.The variance of $5,520,000 is due to the NHFB not drawing down any appropriation by 30 June 2013.

Table B — Departmental and Administered Capital Budgets (‘Recoverable GST exclusive’)

There was no Departmental Capital Budget appropriated to NHFB in 2013–14 or in 2012–13.

Table C — Unspent Annual Appropriations (‘Recoverable GST exclusive’)

Table C — Unspent Annual Appropriations (‘Recoverable GST exclusive’)

 

Authority

2014 $

DEPARTMENTAL

Appropriation Act (No 1) 2013–14

539,450

Appropriation Act (No 1) 2012–13

738,471

Note 16: Compensation and Debt Relief

2014 $

2013 $

Departmental

‘Act of Grace’ expenses were incurred during the reporting period.

No payments were made under any legislative authority during the reporting period.

No expenses were made on a periodic basis. None are expected in future years. The estimated amount outstanding in relation to payments being made on a periodic basis at 30 June 2014 was nil.

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997.

No ex–gratia payments were provided for during the reporting period.

No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 during the reporting period.

Note 17: Reporting of Outcomes

Note 17A: Net Cost of Outcome Delivery

   
 

Outcome 11 2014 $

Outcome 11 2013 $

Departmental

   

Expenses

(4,183,316)

(5,163,903)

Own–source income

40,000

32,000

1 Outcome 1 is described in Note 1.1. Net costs shown included intra–government costs that were eliminated in calculating the actual Budget Outcome. The NHFB had one Outcome in the 2013–14 financial year. All revenues, expenses, assets and liabilities are in relation to achieving this Outcome.

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