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DHHS Annual Report 2009–2010 – Part 5 – Financial Statements157

Par t 5 – Financial StatementsDepartment of Health and Human Services

Statement of Comprehensive Income for the Year Ended 30 June 2010 158

Statement of Financial Position as at 30 June 2010 159

Statement of Cash Flows for the Year Ended 30 June 2010 160

Statement of Changes in Equity for the Year Ended 30 June 2010 161

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2010 162

Statement of Certification 225

Tasmanian Ambulance Service

Statement of Comprehensive Income for the Year Ended 30 June 2010 226

Statement of Financial Position as at 30 June 2010 227

Statement of Cash Flows for the Year Ended 30 June 2010 228

Statement of Changes in Equity for the Year Ended 30 June 2010 229

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2010 230

Statement of Certification 258


Department of Health and Human Services

Statement of Comprehensive Income for the Year Ended 30 June 2010

Notes 2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Continuing Operations

Revenue and Other Income from Transactions

Revenue from Government

Appropriation revenue - recurrent 2.8(a), 7.1 1 331 408 1 393 282 1 204 068

Appropriation revenue - works and services 2.8(a), 7.1 142 085 57 630 19 071

Other revenue from Government 2.8(a), 7.1 550 4 362 22 498

Revenue from Special Capital Investment Funds 7.2 — 32 393 25 866

Grants 2.8(b), 7.3 50 486 54 504 104 902

Sales of goods and services 2.8(d), 7.4 214 592 159 345 159 119

Interest 2.8(e) 1 464 1 349 2 181

Contributions received 2.8(f), 7.5 — — 2 029

Other revenue 2.8(g), 7.6 24 813 34 224 35 984

Total Revenue and Other Income from Transactions 1 765 398 1 737 089 1 575 718

Expenses from Transactions

Employee benefits 2.9(a), 8.1 865 500 903 953 829 984

Depreciation and amortisation 2.9(b), 8.2 50 356 50 612 49 714

Supplies and consumables 8.3 427 289 451 698 464 389

Grants and subsidies 2.9(c), 8.4 198 048 191 348 169 519

Borrowing costs 2.9(d), 8.5 10 201 10 197 10 469

Other expenses 2.9(f), 8.6 60 702 75 079 76 433

Total Expenses from Transactions 1 612 096 1 682 887 1 600 508

Net Result from Transactions (Net Operating Balance) 153 302 54 202 (24 790)

Other Economic Flows Included in Net Resultt

Net gain/(loss) on non-financial assets 2.10(a)(c), 9.1 1 689 (6 558) (2 557)

Net actuarial gains/(losses) of superannuation defined benefit plans

11.5 — 2 613 (3 482)

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

2.10(b), 9.2 (87) 877 (1 281)

Total Other Economic Flows Included in Net Result 1 602 (3 068) (7 320)

Net Result from Continuing Operations 154 904 51 134 (32 110)

Other Economic Flows – Other Non-Owner Changes in Equity

Adjustment to accumulated surplus/(deficit) due to a change in accounting policy

2.5 — — —-

Changes in physical asset revaluation reserve 13.1 53 362 21 243 106 344

Other 1 883 — 898

Total Other Economic Flows – Other Non-Owner Changes In Equity

55 245 21 243 107 242

Comprehensive Result 210 149 72 377 75 132

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.


Statement of Financial Position as at 30 June 2010 Notes 2010

Budget$ 000

2010Actual

$ 000

2009Actual

$ 000

Assets

Financial assets

Cash and deposits 2.11(a), 14.1 49 349 83 232 56 446

Receivables 2.11(b), 10.1 21 930 25 159 26 076

Loan advances 2.11(c), 10.2 10 536 7 130 9 201

Equity investments 2.11(d), 10.3 — 2 459 188

Other financial assets 2.11(e), 10.4 8 957 3 227 1 018

Non-f inancial assets

Inventories 2.11(f), 10.5 9 481 11 896 11 007

Assets held for sale 2.11(g), 10.6 — 6 161 6 301

Property, plant and equipment 2.11(h), 10.7 2 582 346 2 486 379 2 446 445

Intangibles 2.11(i), 10.8 — 11 952 4 099

Other assets 2.11(j), 10.9 — 2 491 1 434

Total Assets 2 682 599 2 640 086 2 562 215

Liabilities

Financial liabilities

Payables 2.12(a), 11.1 34 056 42 720 48 270

Interest bearing liabilities 2.12(b), 11.2 218 289 223 289 229 820

Other financial liabilities 2.12(f), 11.3 — 19 614 6 590

Non-f inancial liabilities

Employee benefits 2.12(d), 11.4 159 996 176 753 186 509

Superannuation 2.12(e), 11.5 16 313 14 877 17 251

Other liabilities 2.12(f), 11.6 37 303 39 549 22 868

Total Liabilities 465 957 516 802 511 308

Net Assets (Liabilities) 2 216 642 2 123 284 2 050 907

Equity

Contributed capital 6 094 6 094 6 094

Reserves 13.1 1 649 194 1 681 462 1 660 219

Accumulated funds 561 354 435 728 384 594

Total Equity 2 216 642 2 123 284 2 050 907

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.


Statement of Cash Flows for the Year Ended 30 June 2010 Notes 2010

Budget$ 000

2010Actual

$ 000

2009Actual

$ 000

Inflows (Outflows)

Inflows (Outflows)

Inflows (Outflows)

Cash Flows from Operating Activities

Cash Inflows

Appropriation receipts - recurrent 1 331 408 1 395 488 1 204 718

Appropriation receipts - capital 142 085 74 883 22 783

Receipts from Special Capital Investment Funds — 33 475 24 785

Grants 50 486 59 947 101 370

Sales of goods and services 213 089 155 476 156 390

GST receipts 45 059 70 823 64 902

Interest received 1 470 1 593 2 224

Other cash receipts 24 996 32 349 36 296

Total Cash Inflows 1 808 593 1 824 034 1 613 468

Cash Outflows

Employee benefits (799 189) (823 686) (732 311)

Superannuation (75 792) (80 931) (71 084)

Borrowing costs (10 201) (10 197) (10 469)

GST payments (45 063) (70 412) (65 648)

Grants and transfer payments (198 048) (191 213) (169 957)

Supplies and consumables (425 582) (454 973) (464 889)

Other cash payments (56 650) (75 889) (57 093)

Total Cash Outflows (1 610 525) (1 707 301) (1 571 451)

Net Cash from (used by) Operating Activities 12.214.2 198 068 116 733 42 017

Cash Flows from Investing Activities

Cash Inflows

Proceeds from the disposal of non-financial assets 13 753 26 147 6 188

Repayment of loans by other entities — 1 445 2 215

Total Cash Inflows 13 753 27 592 8 403

Cash Outflows

Payments for acquisition of non-financial assets (204 822) (110 252) (57 394)

Payments for investments — (755) —

Net customer loans (granted)/repaid (1 155) — —

Total Cash Outflows (205 977) (111 007) (57 394)

Net Cash from (used by) Investing Activities (192 224) (83 415) (48 991)

Cash Flows from Financing Activities

Cash Outflows

Repayment of borrowings (6 396) (6 532) (6 260)

Total Cash Outflows (6 396) (6 532) (6 260)

Net Cash from (used by) Financing Activities (6 396) (6 532) (6 260)

Net Increase (Decrease) in Cash Held and Cash Equivalents (552) 26 786 (13 234)

Cash and Deposits at the Beginning of the Reporting Period 49 901 56 446 69 680

Cash and Deposits at the End of the Reporting Period 14.1 49 349 83 232 56 446

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.


Statement of Changes in Equity for the Year Ended 30 June 2010

Notes Contributed Equity

$ 000

Reserves

$ 000

Accumulated Surplus /

Deficit$ 000

TotalEquity

$ 000

Balance as at 1 July 2009 6 094 1 660 219 384 594 2 050 907

Adjustment due to change in accounting policy

2.5 — — — —

6 094 1 660 219 384 594 2 050 907

Total comprehensive result — 21 243 51 134 72 377

Balance as at 30 June 2010 6 094 1 681 462 435 728 2 123 284

Notes Contributed Equity

$ 000

Reserves

$ 000


Deficit$ 000

TotalEquity

$ 000

Balance as at 1 July 2008 6 094 1 553 875 415 806 1 975 775


2.5 — — — —

6 094 1 553 875 415 806 1 975 775

Total comprehensive result — 106 344 (32 110) 75 132

Prior period adjustment to assets — — (796) (796)

Equity transfer received from Mersey Community Hospital

— — 1 694 1 694

Balance as at 30 June 2009 6 094 1 660 219 384 594 2 050 907

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


Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2010

Notes Page No.

Note 1 Administered Financial Statements 164

1.1 Schedule of Administered Income and Expenses

1.2 Schedule of Administered Assets and Liabilities

1.3 Schedule of Administered Cash Flows

1.4 Schedule of Administered Changes in Equity

Note 2 Significant Accounting Policies 167

2.1 Objectives and Funding

2.2 Basis of Accounting

2.3 Reporting Entity

2.4 Functional and Presentation Currency

2.5 Changes in Accounting Policies

2.6 Administered Transactions and Balances

2.7 Activities Undertaken Under a Trustee or Agency Relationship

2.8 Income from Transactions

2.9 Expenses from Transactions

2.10 Other Economic Flows Included in Net Result

2.11 Assets

2.12 Liabilities

2.13 Leases

2.14 Judgements and Assumptions

2.15 Foreign Currency

2.16 Comparative Figures

2.17 Budget Information

2.18 Rounding

2.19 Departmental Taxation

2.20 Goods and Services Tax

Note 3 Departmental Output Schedules 177

3.1 Output Group Information

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

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

3.4 Administered Output Schedule

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

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

Note 4 Expenditure under Australian Government Funding Arrangements 185

Note 5 Explanations of Material Variances between Budget and Actual Outcomes 186

5.1 Statement of Comprehensive Income

5.2 Statement of Financial Position

5.3 Statement of Cash Flows

Note 6 Events Occurring After Balance Date 189

Note 7 Income from Transactions 189

7.1 Revenue and Other Revenue from Government

7.2 Revenue from Special Capital Investment Funds

7.3 Grants

7.4 Sales of Goods and Services

7.5 Contributions Received

7.6 Other Revenue

Note 8 Expenses from Transactions 191

8.1 Employee Benefits


Notes Page No.8.2 Depreciation and Amortisation

8.3 Supplies and Consumables

8.4 Grants and Subsidies

8.5 Borrowing Costs

8.6 Other Expenses

Note 9 Other Economic Flows Included in Net Result 1939.1 Net Gain/(Loss) on Non-Financial Assets

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

Note 10 Assets 19310.1 Receivables

10.2 Loan Advances

10.3 Equity Investments

10.4 Other Financial Assets

10.5 Inventories

10.6 Assets Held for Sale

10.7 Property, Plant and Equipment

10.8 Intangibles

10.9 Other Assets

Note 11 Liabilities 19911.1 Payables

11.2 Interest Bearing Liabilities

11.3 Other Financial Liabilities


11.5 Superannuation

11.6 Other Liabilities

Note 12 Commitments and Contingencies 20412.1 Schedule of Commitments

12.2 Contingent Assets and Liabilities

Note 13 Reserves 20713.1 Reserves

Note 14 Cash Flow Reconciliation 20714.1 Cash and Deposits

14.2 Reconciliation of Net Result to Net Cash from Operating Activities

14.3 Acquittal of Capital Investment and Special Capital Investment Funds

14.4 Financing Facilities

Note 15 Financial Instruments 21015.1 Risk Exposures

15.2 Categories of Financial Assets and Liabilities

15.3 Reclassifications of Financial Assets

15.4 Net Fair Values of Financial Assets and Liabilities

Note 16 Details of Consolidated Entities 21516.1 List of Entities

Note 17 Notes to Administered Statements 21617.1 Explanations of Material Variances between Budget and Actual Outcomes

17.2 Administered Revenue from Government

17.3 Administered Grants

17.4 Administered Grants and Subsidies

17.5 Administered Receivables

17.6 Administered Payables

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

17.8 Financial Instruments (Administered)

17.9 Categories of Administered Financial Assets and Liabilities

17.10 Net Fair Values of Administered Financial Assets and Liabilities

Note 18 Transactions and Balances Relating to a Trustee or Agency Arrangement 222


Note 1 Administered Financial Statements

1.1 Schedule of Administered Income and Expenses

Notes 2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Administered Revenue and Other Income From Transactions

Revenue from Government

Appropriation revenue - recurrent 2.8(a), 17.2 34 919 38 653 25 992

Grants 2.8(b), 17.3 22 226 28 385 311 787

Total Administered Revenue and Other Income from Transactions

57 145 67 038 337 779

Administered Expenses from Transactions

Grants and subsidies 2.9(c), 17.4 35 016 36 155 30 616

Transfers to the Consolidated Fund 22 226 42 052 295 787

Total Administered Expenses from Transactions 57 242 78 207 326 403

Administered Net Result from Transactions Attributable to the State

(97) (11 169) 11 376

Administered other Economic Flows in Administered Net Result


— — —

Total Administered other Economic Flows Included in Net Result

— — —

Administered Net Resultered Net Resul (97) (11 169) 11 376

Administered other Economic Flows – Other Non-Owner Changes in Equity

Other — — —

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

— — —

Administered Comprehensive Result (97) (11 169) 11 376

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


Explanations of material variances between budget and actual outcomes are provided in Note 17.1 of the accompanying notes.


1.2 Schedule of Administered Assets and Liabilities

Notes 2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Administered Assets

Administered f inancial assets

Receivables 2.11(b), 17.7 — 2 333 16 341

Total Administered Assets — 2 333 16 341

Administered Liabilities

Payables 2.12(a), 17.6 3 961 5 876 8 715

Total Administered Liabilities 3 961 5 876 8 715

Administered Net Assets (Liabilities) (3 961) (3 543) 7 626

Equity

Accumulated funds (3 961) (3 543) 7 626

Total Administered Equity (3 961) (3 543) 7 626

1.3 Schedule of Administered Cash Flows

Notes 2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Inflows (Outflows)

Inflows (Outflows)

Inflows (Outflows)

Administered Cash Flows from Operating Activities

Administered Cash Inflows

Appropriation receipts - recurrent 34 919 38 653 25 992

Grants 22 226 42 052 295 787

Total Administered Cash Inflows 57 145 80 705 321 779

Administered Cash Outflows

Grants and transfer payments (34 919) (38 653) (25 992)

Transfers to the Consolidated Fund (22 226) (42 052) (295 787)

Total Administered Cash Outflows (57 145) (80 705) (321 779)

Administered Net Cash from (used by) Operating Activities

17.7 — — —

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

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.



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




1.4 Schedule of Administered Changes in Equity

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

Notes Accumulated Surplus /

Deficit$ 000

TotalEquity

$ 000

Balance as at 1 July 2009 7 626 7 626


2.5 — —

7 626 7 626

Total comprehensive result (11 169) (11 169)

Balance as at 30 June 2010 (3 543) (3 543)

Notes Accumulated Surplus /

Deficit$ 000

TotalEquity

$ 000

Balance as at 1 July 2008 (3 750) (3 750)


2.5 — —

(3 750) (3 750)

Total comprehensive result 11 376 11 376

Balance as at 30 June 2009 7 626 7 626


Note 2 Significant Accounting Policies2.1 Objectives and Funding

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

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

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

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

The Financial Statements were signed by the Secretary on 13 August 2010.

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 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.

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


The Financial Statements include all the controlled activities of the Agency. 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.


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



(a) Impact of New and Revised Accounting Standards

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:

• AASB 101 Presentation of Financial Statements – This Standard has been revised and introduces a number of terminology changes, as well as changes to the structure of the Statement of Changes in Equity and the Statement of Comprehensive Income. It is now a requirement that owner changes in equity be presented separately from non-owner changes in equity. There is no financial impact resulting from the application of this revised Standard.

• AASB 123 Borrowing Costs – This Standard has been revised to mandate the capitalisation of all borrowing costs attributable to the acquisition, construction or production of qualifying assets. AASB 2009-1 Amendments to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities [AASB 1, AASB 111 and AASB 123] issued in April 2009 allows not-for-profit public sector entities to continue to choose whether to expense or capitalise borrowing costs relating to qualifying assets. There is no financial impact resulting from the application of this revised Standard.

• AASB 2009-2 Amendments to Australian Accounting Standards: Improving Disclosures about Financial Instruments - Introduces new disclosure requirements for fair value measurement and refines existing disclosures on liquidity risk for financial instruments. There is no financial impact from the application of this Standard.

• AASB 2009-10 Amendments to Australian Accounting Standards: Reclassif ication of Financial Instruments - Permits the reclassification of certain non-derivative financial assets. The Agency did not reclassify its financial assets in the current period; accordingly there will be no financial impact.

• AASB Interpretation 14 AASB 119 the Limit on a Defined Benefit Asset, Minimum Funding Requirements (MFR) and their Interaction - The interpretation clarifies when refunds or reductions in future contributions in relation to defined benefit assets should be regarded as available and provides guidance on the impact of minimum funding requirements on such assets. It also gives guidance on when a MFR might give rise to a liability. The Interpretation will not have a material financial impact on the Agency’s Financial Statements.

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

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

• AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 - Revised Standard to be applied from reporting periods beginning on or after 1 January 2010. This Standard changes the term “general purpose financial report” to “general purpose Financial Statements” and the term “financial report” to “Financial Statements”, where appropriate, in Australian Accounting Standards (including Interpretations) and the Framework to better align with IFRS terminology. The Standard will not have a financial impact on the Agency’s Financial Statements.

• AASB 2009-3 Amendments to Accounting Standards arising from AASB 3 and AASB 127 - Revised Standard to be applied to annual reporting periods beginning on or after 1 July 2010. The focus of the Standard is to reduce alternatives in accounting for subsidiaries in consolidated Financial Statements and in accounting for investments in the separate Financial Statements of a parent. The Standard will not have a material financial impact on the Agency’s Financial Statements.

• AASB 2009-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project – Revised Standard to be applied from reporting periods beginning on or after 1 January 2010. The amendments to some Standards result in accounting changes for presentation, recognition or measurement purposes, while some amendments that relate to terminology and editorial changes are expected to have no or minimal effect on accounting. The Standard will not have a material financial impact on the Agency’s Financial Statements.


• AASB 2009-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project - Revised Standard to be applied from annual reporting periods beginning on or after 1 July 2010. This Standard amends AASB 1 and AASB 5 to include requirements relating to a sale plan involving the loss of control of a subsidiary. The amendments require all the assets and liabilities of such a subsidiary to be classified as held for sale and clarify the disclosures required when the subsidiary is part of a disposal group that meets the definition of a discontinued operation. The Standard will not have a financial impact on the Agency’s Financial Statements.

• AASB 2009-7 Amendments to Australian Accounting Standards – Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate – Revised Standard to be applied from reporting periods beginning on or after 1 January 2010. The Standard removes the requirement to deduct dividends declared out of pre-acquisition profits from the cost of an investment in a subsidiary, jointly controlled entity or associate and to include recognising a dividend from a subsidiary, jointly controlled entity or associate, together with other evidence, as an indication that the investment in the subsidiary, jointly controlled entity or associate may be impaired. The Standard will not have a financial impact on the Agency’s Financial Statements.

• AASB 2009-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners - Revised Standard to be applied from annual reporting periods beginning on or after 1 July 2010. The amendments are in respect of the classification, presentation and measurement of non current assets held for distribution to owners in their capacity as owners and the disclosure requirements for dividends that are declared after the reporting period but before the Financial Statements are authorised for issue, respectively. The Standard will not have a material financial impact on the Agency’s Financial Statements.

(c) Voluntary Changes in Accounting Policy

The Agency has not adopted any new accounting policies during the financial year ended 30 June 2010.

2.6 Administered Transactions and Balances

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 Statements.

2.7 Activities undertaken under a Trustee or Agency Relationship

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.

2.8 Revenue and Other Income from Transactions

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.

(a) Revenue from Government

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 Notes 7.1 and 17.2, control arises in the period of appropriation.


(b) Grants

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.

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.

(c) National Partnership Payments

Payments received from the Australian Government as part of the National Partnership Payments are recognised on an accruals basis.

(d) Sales of Goods and Services

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.

(e) Interest

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

(f) Contributions Received

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.

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.

(g) Other Revenue

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.


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

(a) Employee Benefits

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

(b) Depreciation and Amortisation

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:

• Vehicles 5 years

• Plant and equipment 2-20 years

• Medical equipment 4-20 years

• Buildings 40-50 years


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:

• Software 3-5 years

• Long Term Community Housing Program grant 11 years

(c) Grants and Subsidies

Grant and subsidies expenditure is recognised to the extent that:

• the services required to be performed by the grantee have been performed and

• the grant eligibility criteria has 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.

(d) Borrowing Costs

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

Borrowing costs include:

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

• amortisation of discounts or premiums related to borrowings

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

• finance lease charges.

(e) Contributions Provided

Contributions provided free of charge by the Agency, to another entity, are recognised as an expense when fair value can be reliably determined.

(f) Other Expenses

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

2.10 Other Economic Flows included in Net Result

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

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

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

(b) Impairment – Financial Assets

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.


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

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.

(c) Impairment – Non-Financial Assets

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. The 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.


An impairment loss in respect of goodwill is not reversed. 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 extent 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.

(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.

2.11 Assets

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.

(a) Cash and Deposits

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 Funds. Deposits are recognised at amortised cost, being their face value.

(b) Receivables

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.

(c) Loan Advances

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.

(d) Equity Investments

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.

(e) Other Financial Assets

Other financial assets are recorded at fair value and include the Tasmanian Ambulance Service Superannuation Scheme, accrued interest and deferred interest.

(f) Inventories

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

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.

(h) Property, Plant, Equipment and Infrastructure

(i) Valuation Basis

Land, buildings, infrastructure, heritage, 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.

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

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 profit or loss 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 Income Statement 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 Agency’s land and building assets (excluding Housing Tasmania’s rental properties) were revalued independently by Brothers and Newton Pty Ltd as at 30 June 2010 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 2009 based on a mix of on-site revaluations and suburb-based indicie adjustments. The annual revaluations are provided by the Valuer-General of Tasmania.

(i) Intangibles

An intangible asset is recognised where:

• 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.

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.


(j) Other Assets

Other assets are recorded at fair value and include prepayments.

2.12 Liabilities

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.

(a) Payables

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

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.

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

(c) Provisions

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.

(d) Employee Benefits

Liabilities for wages, 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 at the present value of the benefit at 30 June 2010, 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.

(e) Superannuation

(i) Defined Contribution Plans

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.

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.

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

(f) Other Liabilities

Other liabilities and other financial liabilities are recognised in the Balance Sheet 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 employee benefits on-costs. Revenue received in advance is measured at amortised cost. Employee benefits on-costs expected to be realised within 12 months are measured at the amount expected to be paid. Other employee benefits on-costs are measured at the present value of the benefit at 30 June 2010, where the impact of discounting is material, and at the amount expected to be paid if discounting is not material.

2.13 Leases

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.

Judgements made by the Agency that have significant effects on the Financial Statements are disclosed in the relevant notes to the Financial Statements.

The Agency has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.


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.

2.17 Budget Information

Budget information refers to original estimates as disclosed in the 2009-2010 Budget Papers and is not subject to audit.

2.18 Rounding

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.

2.19 Departmental Taxation

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 ATO is, in accordance with the Australian Accounting Standards, classified as operating cash flows.


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Continuing operations


Revenue from appropriation 699 096 744 741 663 248

Grants 6 776 55 297 75 311

Interest income 821 559 902

User charges 127 826 73 116 73 991

Other revenue 15 936 21 306 24 034

Total Revenue and Other Income from Transactions 850 455 895 019 837 486

Expenses From Transactions

Employee entitlements

Salaries and wages 496 850 507 598 470 494

Other employee related expenses 6 771 15 475 15 106

Superannuation expenses 46 928 53 314 44 237

Depreciation and amortisation 22 048 18 751 19 157

Borrowing expenses — 1 1

Grants and transfer payments 3 141 1 252 849

Supplies and consumables

Consultants 1 208 1 777 2 017

Maintenance and property services 31 413 25 395 31 511

Communications 3 782 4 624 4 317

Information technology 8 877 13 846 9 485

Travel and transport 6 617 7 339 8 321

Medical, surgical and pharmacy supplies 137 558 155 780 141 273

Advertising and promotion 109 112 126

Other supplies and consumables 57 449 51 502 68 177

Other expenses 36 425 47 980 44 770

Total Expenses from Transactions 859 176 904 746 859 841

Net Result from Transactions (net operating balance) (8 721) (9 727) (22 355)

Other Economic Flows included in Net Result

Net gain/(loss) on sale of non financial assets 142 (212) (576)

Impairment losses (10) 1 450 (565)

Net actuarial gains/(losses) of superannuation defined benefit plans — 2 592 (5 867)

Total Other Economic Flows included in Net Result 132 3 830 (7 008)

Net Result from Continuing Operations (8 589) (5 897) (29 363)

Other Economic Flows – other Non-Owner Changes in Equity

Changes in physical asset revaluation reserve 620 17 991 15 146

Other 1 883 — —

Total Other Economic Flows – other Non-Owner Changes in Equity 2 503 17 991 15 146

Comprehensive Result (6 086) 12 094 (14 217)

Expense by Output

1.1 Clinical Support Services 37 836 46 169 39 240

1.2 Medical Services 343 397 355 685 348 530

1.3 Surgical Services 220 758 234 271 226 827

Note 3 Departmental Output Schedules 3.1 Output Group Information

Comparative information has not been restated for external administrative restructures.


Output Group 1 – Acute Health Services


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000




Grants — (262) 27 618

Interest income 30 4 33

User charges 14 445 15 336 15 333

Other revenue 5 537 5 912 5 622

Total Revenue and Other Income From Transactions 349 450 364 912 330 949

Expenses From Transactions






Grants and transfer payments 47 185 47 800 40 633


Consultants 630 656 865





Medical, surgical and pharmacy supplies 13 980 19 974 20 893



Other expenses 15 431 18 209 14 982


Net Result From Transactions (net operating balance) (527) (4 360) (11 185)


Net gain/(loss) on sale of non financial assets — (422) (159)

Impairment losses (9) (36) (33)

Total Other Economic Flows included in Net Result (9) (458) (192)

Net Result from Continuing Operations (536) (4 818) (11 377)

Output Group 2 – Community Health Services

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

1.4 Women’s and Children’s Services 99 041 101 037 92 472

1.5 Diagnostic and Pharmacy Services 105 857 118 753 108 515

1.6 Ambulance Services 50 378 46 959 42 435

1.7 Forensic Services 1 919 1 872 1 822

Total 859 186 904 746 859 841

Net Assets

Total assets deployed for Output Group 1 467 861 425 649

Total liabilities incurred for Output Group 1 (150 819) (159 160)

Net Assets Deployed for Output Group 1 317 042 266 489


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000




Grants — (35) 1 529

Interest income 12 786 1 246

User charges 72 318 69 886 69 771

Other revenue 939 3 787 2 790








Borrowing expenses 10 201 10 196 10 467



Consultants 538 735 802





Medical, surgical and pharmacy supplies 1 500 — 951



Output Group 3 – Human Services

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000


Changes in physical asset revaluation reserve 30 919 7 865 6 480

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

30 919 7 865 6 480

Comprehensive Result 30 383 3 047 (4 897)

Expense By Output

2.1 Primary Health Services 168 834 167 432 162 053

2.2 Oral Health Services 27 323 26 484 24 584

2.3 Population Health Services 24 800 37 574 34 682

2.4 Mental Health Services 129 029 137 782 88 983

2.5 Statewide Specialist Services — — 32 024

Total 349 986 369 272 342 326

Net Assets

Total assets deployed for Output Group 2 183 330 181 535


Net Assets Deployed for Output Group 2 127 211 128 361


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000



Revenue from appropriation 647 686 587

Grants — — 7

User charges 3 1 5

Other revenue 2 1 1

Total Revenue and Other Income from Transactions 652 688 600



Salaries and wages 425 438 414

Other employee related expenses 6 23 14

Superannuation expenses 47 47 42

Depreciation and amortisation — 1 1

Grants and transfer payments 3 1 1


Consultants 4 1 1

Output Group 4 – Independent Children’s Review

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Other expenses 6 907 8 480 7 847


Net Result from Transactions (net operating balance) (20 947) (13 956) (23 812)


Net gain/(loss) on sale of non financial assets (22 064) (9 319) (6 168)

Impairment losses (68) (537) (2 388)

Net actuarial gains/(losses) of superannuation defined benefit plans — 21 (2 385)

Other — — 2 029

Total Other Economic Flows included in Net Result (22 132) (9 835) (8 912)

Net Result from Continuing Operations (43 079) (23 791) (32 724)


Changes in physical asset revaluation reserve 21 823 (6 405) 83 280


21 823 (6 405) 83 280

Comprehensive Result (21 256) (30 196) 50 556

Expense by Output

3.1 Child and Family Services 92 315 97 612 91 122

3.2 Youth Justice Services 14 435 14 657 14 117

3.3 Disability Services 141 982 139 057 131 450

3.4 Housing Services 147 779 140 887 149 558

Total 396 511 392 213 386 247

Net Assets

Total assets deployed for Output Group 3 1 923 191 425 649


Net Assets Deployed for Output Group 3 1 655 127 266 489


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000




Other revenue from Government 550 — —

Grants — — 438

User charges — 510 18

Interest income 601 — —

Other revenue 2 399 3 085 3 537


Expenses from transactions


Salaries and wages — 385 64

Other employee related expenses — 76 2

Superannuation expenses — 44 7

Output Group – Capital Investment Program

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Maintenance and property services 53 60 50

Communications 8 14 15

Information technology 5 8 7

Travel and transport 24 32 40

Medical, surgical and pharmacy supplies 4 — 1

Advertising and promotion 1 — 2

Other supplies and consumables 36 27 47

Other expenses 31 36 32

Total Expenses from Transactions 647 688 667

Net Result from Transactions (net operating balance) 5 — (67)


Impairment losses — — —

Total Other Economic Flows included in Net Result — — —

Net Result from Continuing Operations 5 — (67)


Adjustment to accumulated surplus/(deficit) due to change in accounting policy

— — —


— — —

Comprehensive Result 5 — (67)

Expense by Output

4.1 Office for the Commissioner for Children 647 688 667

Total 647 688 667

Net Assets

Total assets deployed for Output Group 4 1 1

Total liabilities incurred for Output Group 4 (76) (84)

Net Assets Deployed for Output Group 4 75 (83)


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Depreciation and amortisation — — —

Borrowing expenses — — —

Grants and transfer payments — 1 245 1 045


Consultants 20 1 257 610

Maintenance and property services — 83 449

Communications — 62 3

Information technology — 127 58

Travel and transport — 39 5

Medical, surgical and pharmacy supplies — 1 —

Advertising and promotion — 17 1

Other supplies and consumables — 197 183

Other expenses 1 883 34 4


Net Result from Transactions (net operating balance) 143 732 62 120 23 833


Net gain/(loss) on sale of non financial assets 23 611 3 395 6 051

Impairment losses — — —

Total Other Economic Flows included in Net Result 23 611 3 395 6 051

Net Result from Continuing Operations 167 343 65 515 28 884


Adjustment to accumulated surplus/(deficit) due to change in accounting policy

— — —

Changes in physical asset revaluation reserve — — —

Financial assets available for sale reserve — — —


— — —


Expense by Output

Output – Capital Investment Program 1 903 3 567 2 431

Total 1 903 3 567 2 431

Net Assets

Total assets deployed for Output Capital Investment Program — —

Total liabilities incurred for Output Capital Investment Program — —

Net Assets Deployed for Output Capital Investment Program

— —


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000


Revenue And Other Income from Transactions

Revenue from Special Capital Investment Fund 50 486 32 393 25 866

Other Revenue — 133 —




Salaries and wages 532 5 097 2 441

Other employee related expenses — 411 456

Superannuation expenses 47 555 217

Depreciation and amortisation — 223 80

Borrowing expenses — — —

Grants and transfer payments — 924 100



Maintenance and property services — 1 309 289

Communications — 72 23


Travel and transport 200 109 151

Medical, surgical and pharmacy supplies — 14 —

Advertising and promotion — 80 81

Other supplies and consumables — 544 931

Other expenses 25 399 194


Net Result from Transactions (net operating balance) 46 536 20 125 12 537

Net Result from Continuing Operations 46 536 20 125 12 537


Expense by Output

Output Special Capital Investment Fund 3 950 12 401 13 329

Total 3 950 12 401 13 329

Net Assets

Total assets deployed for Output Special Capital Investment Fund — —

Total liabilities incurred for Output Special Capital Investment Fund — —

Net Assets Deployed for Output Special Capital Investment Fund

— —

Output Group – Special Capital Investment Funds

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

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Total Comprehensive Result of Output Groups 210 149 79 518 72 796

Reconciliation to Comprehensive Result – Unallocated Assets Revaluation increments and assets gained on external restructure

— 1 792 2 336



3.4 Administered Output Schedule

Comparative information has not been restated for external administrative restructures.


Output Group 1 – Administered Payments

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Administered Revenue and Other Income from Transactions


Grants 22 226 23 385 311 787

Total Administered Revenue and Other Income from Transactions

57 145 67 038 337 779

Administered Expenses from Transactions


Other expenses 22 226 42 052 295 787

Total Administered Expenses from Transactions 57 242 78 207 326 403

Administered Net Result from Transactions (net operating balance)

(97) (11 169) 11 376

Administered Net Result (97) (11 169) 11 376

Total Administered Comprehensive Result (97) (11 169) 11 376

Administered Expense by Output

Administered Payments 57 242 78 207 326 403

Total 57 242 78 207 326 403

Administered Financial Assets

Receivables — 2 333 16 341

Total Administered Financial Assets — 2 333 16 341

Total Administered Assets — 2 333 16 341

Administered Liabilities

Creditors 3 961 5 876 8 715

Total Administered Liabilities 3 961 5 876 8 715

Total Administered Net Liabilities (3 961) (3 543) 7 626

Administered Net Assets

Total administered assets deployed for Administered Payments 2 333 16 341

Total administered liabilities incurred for Administered Payments (5 876) (8 715)

Administered Net Liabilities deployed for Administered Payments

(3 543) 7 626

2010Actual

$ 000

2009Actual

$ 000

Total Net Assets deployed for Output Groups 2 099 306 2 021 282

Reconciliation to Net Assets

Assets unallocated to Output Groups 65 703 48 019

Liabilities unallocated to Output Groups (41 725) (18 394)

Net Assets 2 123 284 2 050 907

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


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Total Administered Net Result of Output Groups (97) (11 169) 11 376

Reconciliation to Administered Net Surplus (Deficit) — — —

Net Surplus (Deficit) (97) (11 169) 11 376

2010Actual

$ 000

2009Actual

$ 000

Total Administered Net Assets deployed For Output Groups (3 543) 7 626

Reconciliation to Administered Net Assets

Assets unallocated to Output Groups — —

Liabilities unallocated to Output Groups — —

Administered Net Liabilities (3 543) 7 626

2010Actual

$ 000

2009Actual

$ 000

Specific Purpose Payments

Disability Services 132 568 123 353

Affordable Housing 34 442 33 685

Health (including Mersey) 310 137 291 705

National Partnership Payments

Health Services 24 357 25 384

Housing 6 713 5 436

Community Services 62 409 68 415

Commonwealth Own Purpose Expenditures 169 315 191 759

Australian Government Nation Building and Economic Stimulus Package

Housing 46 597 7 104

Total 786 538 746 211

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

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

Note 4 Expenditure under Australian Government Funding Arrangements

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 and to facilitate reforms or reward jurisdictions that deliver nationally significant reforms.

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.

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.


Note 5 Explanations of Material Variances between Budget and Actual Outcomes

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 $8 000 000.

5.1 Statement of Comprehensive Income

Note Budget $ 000

Actual$ 000

Variance$ 000

Variance %

Appropriation revenue – recurrent (a) 1 331 408 1 393 282 61 874 4.6

Appropriation revenue – works and services

(b) 142 085 57 630 (84 455) (59.4)

Other revenue from Government (c) 550 4 362 3 812 693.1

Revenue from Special Capital Investment Funds

(d) — 32 393 32 393 100.0

Sales of goods and services (e) 214 592 159 345 (55 247) (25.7)

Other revenue (f) 24 813 34 224 9 411 37.9

Employee benefits (g) 865 500 903 953 (38 453) (4.4)

Supplies and consumables (h) 427 289 451 698 (24 409) (5.7)

Other expenses (i) 60 789 75 059 (14 290) (23.5)

Notes to Statement of Comprehensive Income Variances

(a) An increase in Appropriation revenue - recurrent funding represents the receipt of unbudgeted Australian Government revenue for Health Agreement funding paid through the Department of Treasury and Finance.

(b) The decrease in expected expenditure against budget represents the deferral of expenditure on a number of capital projects.

(c) Other revenue from Government represents unbudgeted Appropriation revenue carried forward from the financial year ended 30 June 2009.

(d) Revenue from the Special Capital Investment Funds (Budget $34.75 million) is budgeted against Grants.

(e) Sales of Goods and Services revenue is less than budgeted with the Mersey Community Hospital Australian Government revenue budget included in this category but receipted against Grants.

(f ) Increased other revenue represents an increase in costs recovered.

(g) An increase in employee benefits expense is primarily the result of increases in salary costs and employee numbers.

(h) An increase in supplies and consumables expenditure occurred as a result of a general movement in costs.

(i) An increase in other expenses against budget is primarily the result of the accrual of workers compensation expense on employee entitlements liabilities.


Note Budget $ 000

Actual$ 000

Variance$ 000

Variance %

Cash and deposits (a) 49 349 83 232 33 883 68.7

Receivables (b) 21 930 25 285 3 355 15.3

Loan advances (c) 10 536 7 713 (2 823) (26.8)

Equity investments (c) — 2 459 2 459 100.0

Other financial assets (d) 8 957 3 227 (5 730) (64.0)

Inventories (e) 9 481 11 896 2 415 25.5

Assets held for sale (f ) — 6 161 6 161 100.0

Property, plant and equipment (g) 2 582 346 2 486 379 (95 967) (3.7)

Intangibles (f ) — 11 952 11 952 100.0

Other assets (f ) — 2 491 2 491 100.0

Payables (h) 34 056 42 720 (8 664) (25.4)

Other financial liabilities (i) — 19 614 (19 614) (100.0)

Employee benefits (j) 159 996 176 753 (16 757) (10.4)

Notes to Statement of Financial Position Variances

(a) The cash and deposits variance to budget represents funds received in advance ($26 million), increased donations ($2 million) and a small increase in retained operating revenue pending expenditure.

(b) The receivables variance represents a slight increase in collection activity not previously budgeted.

(c) Loan advances and equity investments have been budgeted together with the variance to total budget immaterial.

(d) The variance to budget is primarily due to the improvement in the actuarial value of the Tasmanian Ambulance Service Superannuation Scheme not occurring as rapidly as budgeted.

(e) The variance in the value of inventories to budget is primarily due to improved inventory management following the installation of the iPharmacy software system.

(f) Assets held for sale, intangible assets and other assets have been budgeted against the property, plant and equipment assets. Assets held for sale and intangibles are relatively new asset classes within the departmental asset classes and will be budgeted separately in the future.

(g) A minor decrease in the overall value of the departmental property, plant and equipment assets primarily resulting from a revaluation decrement to the Director of Housing land holdings over the revaluation period.

(h) An increase in payables liabilities resulting from improved identification of liabilities expenditure within operating units and an increase in the use of purchase orders.

(i) Other financial liabilities have generally been budgeted with other liabilities. The variance is due to unbudgeted unpaid payroll tax, superannuation and payroll creditors from the 30 June 2010 pay.

(j) The variance is primarily due to an increase in staff members and a general increase in salaries.

5.2 Statement of Financial Position


Note Budget $ 000

Actual$ 000

Variance$ 000

Variance %

Appropriation receipts – recurrent (a) 1 331 408 1 395 488 64 080 4.8

Appropriation receipts – capital (b) 142 085 74 883 (67 202) (47.2)

Receipts from Special Capital Investment Funds

(c) — 33 475 33 475 100.0

Grants (c) 50 486 59 947 9 461 18.7

Sales of goods and services (d) 213 089 155 476 (57 613) (27.0)

GST receipts (e) 45 059 70 823 25 764 57.2

Other cash receipts (f ) 24 996 32 349 7 353 29.4

Employee benefits (g) 799 189 823 686 (24 497) (3.1)

GST payments (e) 45 063 70 412 (25 349) (56.3)

Supplies and consumables (h) 425 582 454 973 (29 391) (6.9)

Other cash payments (i) 56 650 75 889 (19 239) (33.9)

Proceeds from the disposal of non-financial assets

(j) 13 753 26 147 12 394 90.1

Payments for acquisition of non-financial assets

(k) 204 822 110 252 (94 570) (46.2)

Notes to Statement of Cash Flows Variances

(a) An increase in funding represents the receipt of unbudgeted Australian Government revenue paid through the Department of Treasury and Finance.

(b) Decrease in expected expenditure against budget represents the deferral of expenditure on a number of capital projects.

(c) Revenue from the Special Capital Investment Funds is budgeted against Grants.

(d) Sales of Goods and Services revenue is less than budgeted with the Mersey Community Hospital Australian Government revenue budget included in this category but receipted against Grants.

(e) Both GST receipts and payments are higher than budgeted although the net effect on the Agency is immaterial.

(f ) Other cash receipts are slightly higher than budgeted due to a focus on cost recoveries including salary and wage recoveries.

(g) An increase in employee entitlements as a result of increases in salary costs and employee numbers.

(h) An increase in supplies and consumables expenditure as a result of the general movement in costs.

(i) An increase in general expenses as a result of increased costs occurred during the financial year, from additional funding received from Australian Government funding for Health Care agreements receipted via appropriation revenue.

(j) A number of unbudgeted assets surplus to departmental needs as well as houses built for sale and funded from the Australian Government were sold during the financial year.

(k) Expenditure is below budget due to the deferral of a number of capital projects.

5.3 Statement of Cash Flows


Note 6 Events Occurring after Balance DateThe Agency entered into an agreement to purchase the North West Regional Hospital for an amount of $29 million prior to 30 June 2010. The Agency is expected to complete the purchase during September 2010, after the reporting date of 30 June 2010. The financial effect of this event has not been recognised. The Agency received appropriation and recognised the asset in its Statement of Financial Position following the purchase and this will be recognised in the Financial Statements for the year ended 30 June 2011.

Note 7 Revenue and Other Income from Transactions 7.1 Revenue from Government

2010Actual

$ 000

2009Actual

$ 000Economic and Social Infrastructure Fund 32 393 25 866

Total 32 393 25 866

2010Actual

$ 000

2009Actual

$ 000Grants from the Australian Government

General grants (496) 42 594

Specific grants – Mersey Community Hospital 55 000 62 308

Total 54 504 104 902

Section 8A(2) of the Public Account Act 1986 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.

7.2 Revenue from Special Capital Investment Funds

Funding for major infrastructure projects is provided through Special Capital Investment Funds. The Agency is allocated funding for specific projects from the Special Capital Investment Funds as part of the Budget process.

Details of total Special Capital Investment Funds revenues and expenses are provided as part of Note 3. Details of total cash flows for each project are provide as part of Note 14.3.

7.3 Grants

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.

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Appropriation Revenue - Recurrent

Current year 1 331 408 1 393 282 1 204 068

Total 1 331 408 1 393 282 1 204 068

Appropriation Revenue – Works and Services 142 085 57 630 19 071

Revenue from Government - other

Appropriation carried forward under section 8A(2) of the Public Account Act 1986 taken up as revenue in the current year

550 4 362 22 498

Total 142 635 61 992 41 569

Total Revenue from Government 1 474 043 1 455 274 1 245 637


From 1 July 2009 the State and Territory and Australian governments changed the method of paying and receiving Australian Government grants. From 1 July 2009 all funds from new agreements were paid directly to the Department of Treasury and Finance and drawn down as appropriation funding from the State Government. The $496 000 reverses revenue previously recognised.

Funding for Population Health drug purchases has also changed. Population Health now receive drugs directly from the supplier with the invoice paid by the Australian Government.

Grants received from the Australian Government for the Mersey Community Hospital are provided on the condition that the Mersey Community Hospital operates as a public hospital in terms of an agreement between the Crown and the Commonwealth of Australia commencing 1 September 2008 and ending 30 June 2011.


2010Actual

$ 000

2009Actual

$ 000

Housing Tasmania rental income 105 725 104 397

Less rebates (40 506) (40 375)

Net rentals received from housing tenants 65 219 64 022

Income receivable from other tenants 1 402 435

Income from purchasers of dwellings 166 657

Inpatient, outpatient and nursing home fees 43 228 43 639

Pharmacy 2 499 1 016

Prosthesis 4 417 3 908

Private patient scheme 19 784 10 916

Ambulance fees 4 468 4 769

Other client charges 2 755 10 603

Dental fees 2 673 998

Hobart Private Hospital charges 2 032 1 946

Other user charges 10 702 16 209

Total 159 345 159 119

2010Actual

$ 000

2009Actual

$ 000

Salaries and wages recoveries 6 973 7 065

Workers compensation recoveries 5 139 5 035

Food recoveries 5 389 5 134

Industry funds 2 176 2 357

Donations 1 179 1 429

Multipurpose Centre recoveries 351 793

Operating recoveries 13 017 14 171

Total 34 224 35 984

2010Actual

$ 000

2009Actual

$ 000

Fair value of assets assumed at no cost or for nominal consideration — 2 029

Total — 2 029

7.5 Contributions Received

7.6 Other Revenue

Contributions received during 2008-2009 represent the fair value of properties transferred to Housing Tasmania for no consideration.


Housing Tasmania Superannuation Provision

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 valuation of the superannuation liabilities as at 30 June 2010 using the process outlined in the Australian Accounting Standards Board standard 119 Employee Benefits. As a result of the valuation it was determined that the present value of the liabilities in relation to service up to 30 June 1994 was $13.726 million (2009 $13.695 million).

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 RBF Contributory Scheme and former employees who were either contributors or non-contributors and who have retained benefits or are current pensioners.

Superannuation expenses for defined benefits schemes relate to payments into the Superannuation Provision Account (SPA) 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 11 per cent of salary.

Superannuation expenses relating to the defined contribution scheme are paid directly to the superannuation fund 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 two per cent of salary in respect of employees who are members of the contribution scheme.

Note 8 Expenses from Transactions8.1 Employee Benefits

2010$ 000

2009$ 000

Wages and salaries 714 339 654 058

Annual leave 55 839 52 757

Long service leave 13 244 20 717

Sick leave 22 767 21 325

Superannuation – defined contribution scheme 80 068 67 613

Superannuation – defined benefit scheme 4 200 3 998

Other post-employment benefits 10 318 6 445

Other employee expenses – staff allowances 3 178 3 071

Total 903 953 829 984

2010$ 000

2009$ 000

Plant, equipment and vehicles 12 514 13 536

Buildings 37 904 36 079

Total 50 418 49 615

2010$ 000

2009$ 000

Intangibles 167 72

Long Term Community Housing Grant 27 27

Total 194 99

Total Depreciation and Amortisation 50 612 49 714

8.2 Depreciation and Amortisation

(a) Depreciation

(b) Amortisation


2010$ 000

2009$ 000

Grants – Disability Services 91 825 79 431

Grants – Other 50 697 46 259

Subsidies – Home and Community Care 33 313 28 876

Subsidies – Supported Accommodation Assistance 15 513 14 953

Total 191 348 169 519

2010$ 000

2009$ 000


Property services 65 784 66 148

Maintenance 42 227 48 333

Communications 8 991 8 491

Information technology 23 278 17 236

Travel and transport 15 955 18 755

Medical, surgical and pharmacy supplies 175 589 162 807

Advertising and promotion 1 048 1 008

Patient and client services 49 047 42 330

Equipment and furniture 7 219 6 532

Administration 18 780 22 457

Service fees 8 677 10 286

Food production costs 9 414 9 364

Other supplies and consumables 20 514 39 868

Total 451 698 464 389

2010$ 000

2009$ 000

Interest Expense

Interest on loans 10 197 10 469

Total 10 197 10 469



8.5 Borrowing Costs

The Agency provides grants for disability services including carer support, respite, accommodation support, information, advocacy, education, day support, specialist equipment, personal care and other individual support services.

Grants - Other includes those for mental health, community support and palliative care.

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 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.


Note 9 Other Economic Flows included in Net Result9.1 Net Gain/(loss) on Non-Financial Assets

9.2 Net Gain/(loss) on Financial Instruments and Statutory Receivables/Payables

2010$ 000

2009$ 000

Impairment of non-financial assets (7 701) (1 706)

Net gain on disposal of physical assets 1 143 (851)

Total Net Gain/(loss) on Non-Financial Assets (6 558) (2 557)

2010$ 000

2009$ 000

Impairment of:

Loans and receivables 877 (1 281)

Total Net Gain/(loss) on Financial Instruments 877 (1 281)

The impairment of non-financial assets relates to the demolition of partially destroyed rental properties.

The impairment gain on receivables relates to a general decrease in the Provision for Impairment ($1.68 million) offset by a bad debt expense ($0.8 million).

2010$ 000

2009$ 000

Audit fees – Financial Audit 359 283

Operating lease costs 8 273 8 162

Salary on costs 66 234 67 402

Other 213 586

Total 75 079 76 433

2010$ 000

2009$ 000

Receivables 27 342 29 941

Less: Provision for impairment (2 183) (3 865)

Total 25 159 26 076

Sales of goods and services (inclusive of GST) 21 023 20 897

Tax assets 4 136 5 179

Total 25 159 26 076

Settled within 12 months 25 159 26 076

Total 25 159 26 076

2010$ 000

2009$ 000

Reconciliation of Movement in Provision for Impairment of Receivables

Carrying Amount at 1 July 3 865 3 489

Increase/(decrease) in provision recognised in profit or loss (1 682) 476

Carrying Amount at 30 June 2 183 3 865

8.6 Other Expenses

Note 10 Assets10.1 Receivables


2010$ 000

2009$ 000

Loan advances 7 130 9 201

Less: Provision for impairment — —

Total 7 130 9 201


Settled in more than 12 months 3 927 6 188

Total 7 130 9 201

2010$ 000

2009$ 000

Home Share Equity Investment 2 459 188


Total 2 459 188

Settled in more than 12 months 2 459 188

Total 2 459 188

2010$ 000

2009$ 000

Accrued interest 134 78

Accrued revenue 3 093 940

Total 3 227 1 018


Total 3 227 1 018

2010$ 000

2009$ 000

Reconciliation of Movement in Provision for Impairment of Other Financial Assets

Carrying Amount at 1 July — 12

Increase/(decrease) in provision recognised in profit or loss — (12)

Carrying Amount at 30 June — —

2010$ 000

2009$ 000

Reconciliation of Movement in Provision for Impairment of Equity Investments

Carrying amount at 1 July — —

Amounts written off during the year — —

Write off reversals during the year — —

Increase/(decrease) in provision recognised in profit or loss — —

Carrying Amount at 30 June — —

10.2 Loan Advances

10.3 Equity Investments

10.4 Other Financial Assets

Loan advances include financial assistance provided by the Government to the private sector in the form of loans. During 2009-2010 no loan advances were assessed as being impaired.

During 2009-2010 (and 2008-2009) no equity investment assets were assessed as being impaired.


2010$ 000

2009$ 000

Pharmacy 7 435 7 548

General supplies 2 133 1 747

Linen 2 096 1 501

Catering 232 211

Total 11 896 11 007


Total 11 896 11 007

2010$ 000

2009$ 000

Land 2 919 4 353

Buildings 3 285 1 980

Less: Accumulated depreciation (43) (32)

Total 6 161 6 301


Total 6 161 6 301

10.5 Inventories

10.6 Assets Held for Sale

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

The Agency’s assets held for sale (excluding Director of Housing assets held for sale) include 10 properties identified as no longer meeting the needs of the Agency. The assets will be disposed 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.

Director of Housing 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.

Director of Housing assets sold during the year include 13 dwellings and nine residential land lots and a commercial land lot at Cove Hill, Bridgewater. These assets were 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.


2010$ 000

2009$ 000

Land

Housing Tasmania’s land at fair value as at 31 October 2009 534 887 566 288

Health and Human Services land at fair value as at 30 June 2010 72 985 73 151


Total 607 872 639 439

Buildings

Housing Tasmania’s rental dwellings at fair value as at 31 October 2009 1 241 784 1 233 323

Less: Accumulated depreciation (16 969) (15 871)


Total 1 224 815 1 217 452

Health and Human Services buildings at fair value as at 30 June 2010 490 604 467 584



Total 490 511 467 506

Total Buildings 1 715 326 1 684 958

Community Housing Stock

At fair value as at 31 October 2009 47 789 44 393

Less: Accumulated amortisation (637) (556)


Total 47 152 43 837

Plant, Equipment and Vehicles

At cost 136 616 130 874



Total 52 159 52 744

Work in progress (at cost) 5 717 787

Total 57 876 53 531

Building Works in Progress

Housing Tasmania properties at cost 33 616 8 098

Health and Human Services properties at cost 24 537 16 582

Total 58 153 24 680

Total Property, Plant and Equipment 2 486 379 2 446 445


The Agency’s land and building assets (excluding Housing Tasmania’s rental properties) were revalued independently by Brothers and Newton Pty Ltd as at 30 June 2010 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 2009 based on a mix of on-site revaluations and suburb-based indices adjustments. The annual revaluations are provided by the Valuer-General of Tasmania.

(a) Carrying Amount

(b) Reconciliation of Movements

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.


2010 Land

$000

Building

$000

CommunityHousing

stock

$ 000

PlantEquipment

andVehicles

$ 000

BuildingWorks in Progress

$000

Total

$000

Carrying Value at 1 July 2009

639 439 1 684 958 43 837 53 531 24 680 2 446 445

Additions 16 688 9 030 — 11 882 64 439 102 039

Disposals (11 655) (12 079) — (633) — (24 367)

Revaluation increments (decrements)

(33 836) 50 830 4 248 — — 21 242

Impairment losses — (7 701) — — — (7 701)

Assets held for sale (2 919) (3 242) — — — (6 161)

Net transfers 155 30 484 — — (30 966) (327)

Work in progress at cost

— — — 5 610 — 5 610

Depreciation and amortisation

— (36 954) (933) (12 514) — (50 401)

Carrying Value at 30 June 2010

607 872 1 715 326 47 152 57 876 58 153 2 486 379

2009 Land

$000

Building

$000

CommunityHousing

stock

$ 000

PlantEquipment

andVehicles

$ 000


$000

Total

$000

Carrying Value at 1 July 2008

595 935 1 658 583 41 948 47 239 5 393 2 349 098

Prior period adjustment (376) (1 130) — 1 534 — 28

Prior period reclassification to assets held for sale

(74) (141) — — — (215)

Additions 3 377 14 251 — 15 587 24 534 57 749

Disposals (3 421) (3 725) — (603) — (7 749)

Net additions through restructuring – Mersey Community Hospital assets

— — — 3 051 — 3 051

Revaluation increments (decrements)

48 350 56 019 2 729 — — 107 098

Impairment losses —- (1 706) — — — (1 706)

Assets held for sale (4 352) (1 954) — — — (6 306)

Net transfers — — — (528) — (528)

Work in progress at cost

— — — 787 (5 247) (4 460)

Depreciation and amortisation

— (35 239) (840) (13 536) — (49 615)

Carrying Value at 30 June 2009

639 439 1 684 958 43 837 53 531 24 680 2 446 445


2010$ 000

2009$ 000

Intangibles with a Finite Useful Life

At cost – Computer Software 1 231 1 005


Total 536 477

At cost – Long Term Community Housing Program Grant 300 428


Total 55 209


At cost – Computer Software Work in Progress 11 361 3 413

Total Intangibles 11 952 4 099

2010$ 000

2009$ 000

Other Current Assets

Prepayments 2 491 1 434

Total 2 491 1 434


Total 2 491 1 434

2010$ 000

2009$ 000

Carrying Amount at 1 July 1 434 5 386

Additions 2 491 1 434

Disposals (1 434) (5 386)


2010$ 000

2009$ 000

Carrying Amount at 1 July 4 099 236

Additions – other 226 1 005

Transfers – from Long Term Community Housing Program Grant to Loan Advances (128) —

Work in progress at cost 7 949 3 413

Depreciation/amortisation expense (194) (555)


10.8 Intangibles

10.9 Other Assets

(a) Carrying Amount

(a) Carrying Amount




Note 11 Liabilities11.1 Payables

2010$ 000

2009$ 000

Creditors 42 720 48 270

Total 42 720 48 270


Total 42 720 48 270

2010$ 000

2009$ 000

Loans from the State Government 115 214 117 067

Loans from the Australian Government 108 075 112 753

Total 223 289 229 820



Total 223 289 229 820

2010$ 000

2009$ 000

Payroll Clearing Account 17 176 4 058

Other 2 438 2 532

Total 19 614 6 590


Settled in more than 12 months — —

Total 19 614 6 590

2010$ 000

2009$ 000

Accrued salaries 12 345 37 945


Long service leave 95 198 79 751

Sabbatical leave 2 783 2 997

Development leave, time off in lieu and State Service Accumulated Leave Scheme 4 511 3 837

Total 176 753 186 509



Total 176 753 186 509

Settlement is usually made within 45 days of Tax Invoice date.

11.2 Interest Bearing Liabilities

11.3 Other Financial Liabilities



TasmanianAmbulance

SuperannuationScheme

Housing Tasmania

SuperannuationProvision

Total Liability

2010$ 000

2009$ 000

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Present value of funded liability 34 541 33 490 — — 34 541 33 490

Fair value of plan assets (33 390) (29 934) — — (33 390) (29 934)

Total 1 151 3 556 — — 1 151 3 556

Present value of unfunded liability 1 151 3 556 13 726 13 695 14 877 17 251

(Surplus)/deficit 1 151 3 556 13 726 13 695 14 877 17 251

Net actuarial gains not recognised — — — — — —

Restrictions on assets recognised — — — — — —

Other — — — — — —

Total — — — — — —

Settled within 12 months 1 151 3 556 700 723 1 851 4 279

Settled in more than 12 months — — 13 026 12 972 13 026 12 972

Total 1 151 3 556 13 726 13 695 14 877 17 251

11.5 Superannuation

(a) Type of Plan

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.

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 2010 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 $1.151 million (2009 $3.556 million deficit). The movement over the financial year was primarily caused by an investment profit due to the increase in the market value of assets.


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 2010 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 $13.726 million (2009 $13.695 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 RBF Contributory Scheme and former employees who were either contributors or non-contributors and who have retained benefits or are current pensioners.

(b) Superannuation Liability


(c) Key Actuarial Assumptions

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

(e) Reconciliation of Movements in Plan Assets

TasmanianAmbulance


Housing TasmaniaSuperannuation

Provision

2010 2009 2010 2009

Discount rate (net of tax) 4.90% 5.20% 5.35% 5.70 %

Expected return on assets 7.00% 7.00% 7.00% 7.00 %

Expected rate of salary increases 4.50% 5.00% 4.50% 4.50 %

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

TasmanianAmbulance


Housing Tasmania

SupernnuationProvision

Total Liability

2010$ 000

2009$ 000

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Balance at 1 July 33 490 32 262 13 695 15 915 47 185 48 177

Current service cost 1 895 1 917 — 24 1 895 1 941

Interest cost 1 668 1 692 760 863 2 428 2 555

Contributions by members and transfers from other funds

928 939 — — 928 939

Actuarial losses/(gains) (1 806) (709) (21) (2 385) (1 827) (3 094)

Benefits paid (1 288) (2 477) (708) (722) (1 996) (3 199)

Other (346) (134) — — (346) (134)

Balance at 30 June 34 541 33 490 13 726 13 695 48 267 47 185

TasmanianAmbulance


Housing Tasmania


Total Liability

2010$ 000

2009$ 000

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Balance at 1 July 29 934 34 300 — — 29 934 34 300

Expected return on plan assets 2 104 2 551 — — 2 104 2 551

Actuarial losses/(gains) 787 (6 576) — — 787 (6 576)

Employer contributions 1 272 1 332 708 722 1 980 2 054

Contributions by plan participants 928 939 — — 928 939

Benefits paid (1 288) (2 477) (708) (722) (1 996) (3 199)

Other (348) (135) — — (348) (135)

Balance at 30 June 33 389 29 934 — — 33 389 29 934


(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 $2.89 million gain (2009 $4.025 million loss or approximately 5.14 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.

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

Tasmanian Ambulance Service Superannuation SchemeStrategic Asset Allocation

Asset Allocation

2010%

30 June

2009%

30 June

Equity instruments 48 48

Fixed interest 12 11

Property 16 16

Alternative investments 20 17

Cash 4 8

Total 100 100

The history of experience adjustments is as follows:


2010$ 000

2009$ 000

2008$ 000

2007$ 000

2006$ 000

Fair value of plan assets 33 389 29 934 34 300 37 099 33 377

Present value of defined benefit obligation 34 541 33 490 32 262 31 097 27 494

Surplus/(deficit) 1 151 (3 556) 2 038 6 003 5 883

Experience adjustments on plan liabilities (787) (1 140) 317 3 520 (3 377)

Experience adjustments on plan assets (1 299) 6 576 4 401 (2 203) (2 057)


2010$ 000

2009$ 000

2008$ 000

2007$ 000

2006$ 000

Fair value of plan assets — — — — —


Surplus/(deficit) (13 726) (13 695) (15 915) (17 229) (15 489)

Experience adjustments on plan liabilities (760) (1 196) 1 — (38)

Experience adjustments on plan assets — — — — —


TasmanianAmbulance


Housing Tasmania


Total

2010$ 000

2009$ 000

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Current service cost 1 895 1 917 — 24 1 895 1 941

Interest cost 1 668 1 692 760 863 2 428 2 555

Expected return on plan assets (2 104) (2 551) — — (2 104) (2 551)

Recognised actuarial losses/(gains) (2 592) 5 867 (21) (2 385) (2 613) 3 482

Other 1 272 1 332 708 722 1 980 2 054

Total 139 8 257 1 447 (776) 1 586 7 481

(g) Amounts Recognised in Profit or Loss

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

(h) Funding Arrangements

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.

The Agency expects to make a contribution of $1.369 million (2010 $1.46 million) to the defined benefit plan for the Tasmanian Ambulance Superannuation Scheme during the next financial year and a contribution of $0.947 million (2010 $0.723 million) for the Housing Tasmania Superannuation Provision.


2010$ 000

2009$ 000

Revenue Received in Advance

Appropriation carried forward from current and previous years under section 8A of the Public Account Act 1986

19 458 4 362

Other revenue received in advance 6 678 1 674

Other Liabilities

Employee benefits – on costs 13 254 16 823

Other 159 9

Total 39 549 22 868



Total 39 549 22 868


Note 12 Commitments and Contingencies12.1 Schedule of Commitments

2010$ 000

2009$ 000

By Type

Capital Commitments

Property, plant and equipment 55 434 1 834

Infrastructure 106 800 39 779

CSHA Debt Repayment 223 300 229 800

Other — 2 000

Total Capital Commitments 385 534 273 413

Operating Lease Commitments

Motor vehicles 8 101 29 724

Medical equipment 15 047 11 766

Rent on buildings 69 073 65 209

Information technology 22 823 —

Total Lease Commitments 115 044 106 699

Other Commitments

RFDS air ambulance standing charge 3 674 15 119

CSHA Debt Interest 150 700 160 900

Miscellaneous grants 464 714 —

Miscellaneous goods and services contracts 22 478 4 656

Total Other Commitments 641 566 180 675

By Maturity

Capital Commitments

One year or less 150 349 49 616

From one to five years 46 685 28 097

More than five years 188 500 195 700

Total Capital Commitments 385 534 273 413





Total Operating Lease Commitments 115 044 106 699

Other Commitments




Total Other Commitments 641 566 180 675

Total 1 142 144 560 787


Property, Plant and Equipment

Property, plant and equipment commitments include commitments to either build or improve existing Health and Human Services properties totalling $55 million including the Clarence Integrated Community Care and GP Superclinic to a value of $17 million, Royal Hobart Hospital Redevelopment program to a value of $2.5 million, Longford and Westbury Health Centre upgrade to a value of $1.575 million, Tasmanian Ambulance Headquarters upgrade to a value of $1.2 million and Central Highlands Community Health Centre up to a value of $1.4 million. Commitments at the Launceston General Hospital include commitments to build or improve the Department of Emergency Medicine, Medical Day Procedure Unit and Acute Medical Unit to a value of $27 million and the Holman Clinic to a value of $2.9 million.

Infrastructure

Capital commitments include $86.121 million for the Commonwealth Economic Stimulus Program, $5.270 million under the State Government Housing Fund and a further $50.284 million under the General Housing Program. The General Housing Program includes $34.924 million for principal repayments of prior Commonwealth State Housing Agreement (CSHA) debt plus major works activities including the Balamara Street Unit Redevelopment ($3.530 million) the replacement of Mara House ($1.179 million) and Disability Services capital works ($4.129 million).

Commonwealth State Housing Agreeement (CSHA) Debt Repayment

The Agency (Director of Housing) has borrowings totalling $223.3 million repayable over a number of years with the debt now expected to be repaid by 30 June 2042.

Motor Vehicles (Operating Lease)

The Government 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 are for a period of two years or 40 000 kms, whichever comes first, with no change to the lease rate. No restrictions or purchase options are contained in the lease. The 2010 commitment was calculated on the basis of commitments entered into as at 30 June 2010. The 2009 commitment was calculated on the basis of an estimated monthly commitment for leases for a total of two years.

Medical Equipment (Operating Lease)

The Agency is party to a Master Facility Agreement with Rentworks Ltd. 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 12 months or the initial term, whichever is the lesser.

Rent on Buildings (Operating Lease)

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

Information Technology

Information Technology (IT) has infrastructure and software funding commitments of $22.8 million (2009 $12.748 million). The 2009 IT commitment has not previously been recognised.

Royal Flying Doctor Service (RFDS) Air Ambulance Standing Charge

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. For the 2009 Financial Statements the commitment was calculated based on a rolling five year contract which is now under review.

Miscellaneous Grants

The Agency’s Grants Unit has commitments of $464.7 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 (2009 $210.1 million of which $160.4 million was for less than one year and $49.7 million for one to five years).


The 2009 Grants commitment had not previously been recognised and with a move to triennium funding agreements the forward and ongoing commitment has been acknowledged.

Miscellaneous Goods and Services Contracts

Miscellaneous goods and services contracts also include Director of Housing commitments for Specialist Intervention Tenancy Service (SITS) ($7.3 million), Tasmania Affordable Housing Ltd (TAHL) ($6.275 million), Private Rental Support Scheme (PRSS) ($3.3 million), maintenance services agreements for Cancer Screening units to a value of $1.3 million, security contract for the Wilfred Lopez Centre at Risdon Prison $0.225 million, contracts for Palliative Care Services $0.54 million together with various other contracts.

12.2 Contingent Assets and Liabilities

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.

(a) Quantifiable Contingencies

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.

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.

2010$ 000

2009$ 000

Quantifiable Contingent Liabilities

Contingent Claims

Medical and other legal claims 32 954 13 231

Workers compensation 10 309 6 772

Total Quantifiable Contingent Liabilities 43 263 20 003

Quantifiable Contingent Assets

Community housing properties 24 115 24 315

Less accumulated depreciation and amortisation (1 430) (979)

Total Quantifiable Contingent Assets 22 685 23 336

At 30 June 2010, 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.

The Agency manages the liabilities 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.

The Agency also has 339 open workers’ compensation claims (2009 - 572 open claims). The Agency insures through the TRMF. A two week excess on weekly benefits is payable on every claim. Amounts over the excess are met by the TRMF.

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 in accordance with Note 2.11.


Note 13 Reserves13.1 Reserves

2010$ 000

2009$ 000

Asset Revaluation Reserve

Balance at the beginning of financial year 1 660 219 1 553 875

Revaluation increments/(decrements) 21 243 106 344

Balance at End of Financial Year 1 681 462 1 660 219

Contributed Capital Reserve

Balance at the beginning of financial year 6 094 6 094

Balance at End of Financial Year 6 094 6 094

Balance of Reserves at End of Financial Year 1 687 556 1 666 313

2010$ 000

2009$ 000

Special Deposits and Trust Fund Balance

T510 DHHS Operating Account 43 171 31 094

T592 Housing Services Operating Account 14 667 3 377

T440 Tasmanian Guardianship Fund Account 2 2

T441 Staff Specialists Teaching Account — —

T453 Purchase Contract Homes Account — —

T470 Patient Trust and Hospital Bequest Account 15 585 13 106

T647 Home Ownership Assistance Program 11 351 10 532

T680 New Town Mothercraft Home Account 27 26

Total 84 803 58 137

Other Cash Held

T470 Patient Trust and Hospital Bequest – Legal Trust Funds (2 000) (1 641)

Other cash equivalents not included above 429 (50)

Total (1 571) (1 691)

Total Cash and Deposits 83 232 56 446

(a) Nature and Purpose of Reserves


The Asset Revaluation Reserve is used to record increments and decrements on the revaluation of non-financial assets, as described in Note 2.11(h).

Capital Contributed Reserve

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

Note 14 Cash Flow Reconciliation14.1 Cash and Deposits

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.


2010$ 000

2009$ 000

Net result 50 573 (32 110)

Depreciation and amortisation 50 612 49 714

IT asset accrual 4 980 —

(Gain) loss from sale of non-financial assets 1 803 851

Recognition of assets as a result of stocktake/donations — (2 029)

Impairment losses 6 823 2 987

Decrease (increase) in receivables 917 (6 190)

Decrease (increase) in prepayments (1 057) 3 952

Decrease (increase) in inventories (889) (3 297)

Decrease (increase) in other assets (2 209) 1 091

Increase (decrease) in employee entitlements (9 756) 32 912

Increase (decrease) in payables (3 597) 4 690

Increase (decrease) in other liabilities 18 533 (10 554)

Net Cash from (used by) Operating Activities 116 733 42 017

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Capital Investment Program

Disability Services – Supported Accommodation 1 400 383 —

Launceston General Hospital Acute Medical and Surgical Unit 15 000 1 725 —

Nation Building – Economic Stimulus Plan: Housing – New Construction Stage 1

14 731 12 937 —

Nation Building – Economic Stimulus Plan: Housing – New Construction Stage 2

75 523 24 416 —

Nation Building – Economic Stimulus Plan: Housing – Repairs and Maintenance

4 662 6 452 —

PET-CT Scanner at the Royal Hobart Hospital 3 500 — —

CCTV Project at Ashley Youth Detention Centre 250 100 —

Clarence GP Superclinic 4 500 1 109 274

Housing – New Projects 17 543 24 444 17 249

Launceston Integrated Care Centre 5 550 2 028 16

Launceston General Hospital Emergency Department 8 055 652 612

New Ambulances 2 000 2 225 2 930

Housing – non works 6 532 6 532 6 260

Smithton District Hospital — — 2 372

Launceston General Hospital Gas Conversion — 1 387 1 340

Mental Health Review — — 747

Disability Support Accommodation — — 50

Royal Hobart Hospital Capital — 2 125 1 639

Total 159 246 86 515 33 489


14.3 Acquittal of Capital Investment and Special Capital Investment Funds

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.


(a) Project Expenditure


2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Special Capital Investment Funds

Economic and Social Infrastructure Fund

Hospital Equipment Fund 1 500 2 134 6 751

Affordable Housing Strategy — — 129

Acute Surgery and Education Facility — — 102

Infrastructure Tasmania Fund

Health Information Technology — — —

Child Protection Information System Phase Two 200 200 230

Enterprise Storage Solution 500 500 2 105

LAN and Infrastructure Upgrade 1 000 1 002 993

Medical Imaging Project 1 000 126 —

Mental Health Services Electronic Client Management and Reporting System

750 759 12

Messaging and Identifier Systems 500 534 316

Patient Administration System 1 500 3 351 1 741

Health Infrastructure

Bruny Island Community Health Centre Upgrade 1 950 2 678 328

Clarence GP Superclinic/ICC 3 500 — —

Flinders Island Multi Purpose Centre Upgrade 1 000 123 —

Glenorchy – Tier Three Community Health Services Facility 1 200 80 —

Longford/Westbury Health Centre Upgrade 1 875 353 10

Launceston ICC — — —

King Island Hospital and Health Centre Upgrade 1 000 17 —

Kingston – Tier Three Community Health Services Facility 500 57 —

Tasmanian Ambulance Service Station Upgrade 750 1 112 468

Primary Health Plan Implementation – Minor Works — 89 414

Launceston General Hospital Fire Detection System Upgrade — 699 198

Central Highlands Community Health Centre 500 74 —

Hospitals Capital Fund

Launceston General Hospital Car Park 10 000 1 044 —

North West Regional Hospital 761 1 778 —

Royal Hobart Hospital 11 000 6 777 —

Housing Fund

Housing Fund 10 000 8 992 3 546

Urban Renewal – Bridgewater/Gagebrook 1 000 455 —

Urban Renewal – Bethlehem House 145 150 —

Royal Hobart Hospital Redevelopment Fund

Royal Hobart Hospital Redevelopment Project — 1 562 7 992

Total 52 131 34 646 25 335


(b) Classification of Cash Flows

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

2010$ 000

2009$ 000

Cash Outflows

Salaries and wages 6 254 2 417

Supplies and consumables 5 665 12 442

Grants 1 469 1 444

Payments for acquisition of assets 100 854 35 165

Debt repayment 6 532 6 260

Other cash payments 387 1 096

Total Cash Outflows 121 161 58 824

2010$ 000

2009$ 000

Amount used 1 645 1 688

Amount unused 355 312

Total 2 000 2 000

14.4 Financing Facilities

The total value of the Westpac Banking Corporation Credit Card facility limit as at 30 June 2010 totals $2 million (2009 $2 million).

Note 15 Financial Instruments15.1 Risk Exposures

(a) Risk Management Policies

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

• 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.

(b) Credit Risk Exposures

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

Analysis of Financial Assets that are Past Due at 30 June 2010 but not Impaired

Past Due < 30 days

$ 000

Past Due 30 – 120

days$ 000

Past Due> 120 days

$ 000

Total$ 000

Receivables 1 038 176 — 1 214


Past Due < 30 days

$ 000

Past Due 30 – 120

days$ 000

Past Due> 120 days

$ 000

Total$ 000

Receivables 2 570 1 213 3 191 6 974

Financial Instrument Accounting and Strategic Policies (including recognition criteria and measurement basis)

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

Financial Assets

Loans and Receivables 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.

Receivables credit terms are generally 45 days.

Equity Investments Equity investments are recognised at the nominal amounts due, less any provision for impairment.

Equity investments credit terms require the repayment of the Departmental equity interest in a land and building asset, in cash, within a maximum term of 15 years.

Other Financial Assets Other financial assets are recognised at the nominal amounts due, less any provision for impairment.

Other financial assets 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.

The Agency has made no changes to its credit risk policy or policy for the calculation of provision for impairment during 2009-2010. 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 departmental 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 of any collateral or other security:

2010$ 000

2009$ 000

Guarantee provided — —

Total — —




Financial Liabilities

Payables 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.

Settlement is usually made within 30 days.

Interest Bearing Liabilities 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.

Contractual payments made on a regular basis.

Other Financial Liabilities 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 Agency regularly reviews budgeted and actual cash outflows to ensure that there is sufficient cash to meet all obligations.


(c) Liquidity Risk

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.

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:

Maturity Analysis for Financial Liabilities

2010 1 Year

$ 000

2 Years

$ 000

3 Years

$ 000

4 Years

$ 000

5 Years

$ 000

More than 5 Years$ 000

UndiscountedTotal$ 000

Carrying Amount

$ 000


Payables 42 483 — — — — — 42 720 42 483

Interest bearing liabilities

6 669 6 812 6 968 7 147 7 328 188 365 223 289 223 289

Other financial liabilities

18 042 — — — — — 19 614 18 042

Total 67 194 6 818 6 968 7 147 7 328 188 365 285 623 283 814

Maturity Analysis for Financial Liabilities

2009 1 Year

$ 000

2 Years

$ 000

3 Years

$ 000

4 Years

$ 000

5 Years

$ 000



Carrying Amount

$ 000


Payables 48 270 — — — — — 48 270 48 270

Interest bearing liabilities

6 532 6 669 6 812 6 968 7 147 195 692 229 820 229 820


6 590 — — — — — 6 590 6 590

Total 61 392 6 669 6 812 6 968 7 147 195 692 284 680 284 680


(d) Market Risk

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.

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

2010$ 000

2009$ 000

Fixed Rate Instruments

Financial assets — —

Financial liabilities 223 289 229 820

Total 223 289 229 820

Variable Rate Instruments

Financial assets 48 237 30 702

Financial liabilities — —

Total 48 237 30 702

2010$ 000

2009$ 000

Financial Assets

Financial assets at fair value through profit and loss – designated on initial recognition 2 459 —

Financial assets measured at amortised cost 83 232 56 446

Loans and receivables 35 516 36 483

Total 121 207 92 929


Financial liabilities measured at amortised cost 285 623 284 680

Total 285 623 284 680

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:

This analysis assumes all other variables remain constant. The analysis was performed on the same basis for 2009.


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

Statement of Comprehensive Income

Equity

100 basis points increase

100 basis points decrease



30 June 2010

Financial assets 482 (482) 482 (482)

Financial liabilities — — — —

Net Sensitivity 482 (482) 482 (482)

30 June 2009

Financial assets 236 (236) 236 (236)


Net Sensitivity 236 (236) 236 (236)


The Agency’s maximum exposure to credit risk for its financial assets is $122.8 million (2009 $95.91 million). It does not hold nor is 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 loans 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.


The Agency has not made any reclassification of financial assets during the financial year ended 30 June 2010.


2010 Total Carrying Amount

$ 000

Net Fair Value

Level 1$ 000

Net Fair Value

Level 2$ 000

Net Fair Value

Level 3$ 000

Net Fair Value Total$ 000

Financial Assets

Other Financial Assets

Equity investments 2 459 — 2 459 — 2 459

Other 3 227 — 3 227 — 3 227

Total Financial Assets 5 686 — 5 686 — 5 686

Financial Liabilities (Recognised)


Borrowings 223 289 — 223 289 — 223 289

Other 19 614 — 19 614 — 19 614

Total Financial Liabilities (Recognised)

242 903 — 242 903 — 242 903


$ 000

Net Fair Value

Level 1$ 000

Net Fair Value

Level 2$ 000

Net Fair Value

Level 3$ 000


Financial Assets

Other financial assets

Equity investments 238 — 238 — 238

Other 1 018 — 1 018 — 1 018


Financial Liabilities (Recognised)


Borrowings 229 820 — 229 820 — 229 820

Other 6 590 — 6 590 — 6 590

Total Financial Liabilities (Recognised)

236 410 — 236 410 — 236 410


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

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

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.

Reconciliation of Level 3 Fair Value Movements

2010$ 000

2009$ 000

Opening Balance

Total gains and losses — —

Other comprehensive income — —

Purchases — —

Sales — —

Transfers from other categories — —

Closing Balance — —

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

— —

Financial Assets

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

The net fair values of equity investments are based on the departmental 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 2009 by the Valuer-General using a mix of onsite revaluations and suburb based indicia 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.

Note 16 Details of Consolidated Entities16.1 List of Entities

The following entities have been consolidated by the Agency:

Director of Housing 100 per cent per annum

Director of Ambulance Services 100 per cent per annum


Note 17 Notes to Administered Statements17.1 Explanations of Material Variances between Budget and Actual Outcomes

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.

(a) Schedule of Administered Income and Expenses

Notes to Schedule of Administered Income and Expenses Variances

(a) An increase in appropriation and grant and subsidies payments due to the less than expected Community Service Obligation payments to Aurora for the financial year ended 30 June 2009 subsequently received post 30 June 2009 and drawn from the Consolidated Fund and paid in the 2009-2010 financial year.

(b) An increase in grants from the Australian Government to the Agency and remitted to the Consolidated Fund.

(b) Schedule of Administered Assets and Liabilities

Notes to Schedule of Administered Assets and Liabilities Variances

(a) Unbudgeted Australian Government grants accrued but not paid as at 30 June 2010.

(b) An increase in a Community Service Obligation claim from Aurora accrued as at 30 June 2010.

(c) Schedule of Administered Cash Flows

Notes to Schedule of Administered Cash Flow Variances

(a) An increase in appropriation and grant and subsidies payments due to the less than expected Community Service Obligation payments to Aurora subsequently for the financial year ended 30 June 2009 received post 30 June 2009 and drawn from the Consolidated Fund and paid in the 2009-2010 financial year.

(b) An increase in grants from the Australian Government to the Agency and remitted to the Consolidated Fund.

Note Budget $ 000

Actual$ 000

Variance$ 000

Variance %

Appropriation revenue – recurrent (a) 34 919 38 653 3 734 10.7

Grants (b) 22 226 28 385 6 159 27.7

Transfers to the Consolidated Fund (b) 22 226 42 052 (19 826) (89.2)

Note Budget $ 000

Actual$ 000

Variance$ 000

Variance %

Receivables (a) — 2 333 2 333 100.0

Payables (b) 3 961 5 876 (1 915) (48.3)

Note Budget $ 000

Actual$ 000

Variance$ 000

Variance %

Appropriation receipts – recurrent (a) 34 919 38 653 3 734 10.7

Grants (b) 22 226 42 052 19 826 89.2

Grants and transfer payments (a) 34 919 38 653 (3 734) (10.7)

Transfers to the Consolidated Fund (b) 22 226 42 052 (19 826) (89.2)


17.2 Administered Revenue from Government

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 1986 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.

17.3 Administered Grants

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 departments.

17.4 Administered Grants and Subsidies

2010$ 000

2009$ 000

Grants from the Australian Government

General grants 28 385 311 787

Total 28 385 311 787

2010$ 000

2009$ 000

Subsidies 36 155 30 616

Total 36 155 30 616

2010$ 000

2009$ 000



Total 2 333 16 341


Total 2 333 16 341


Total 2 333 16 341

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

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

17.5 Administered Receivables

2010Budget

$ 000

2010Actual

$ 000

2009Actual

$ 000

Appropriation revenue - recurrent

Current year 34 919 38 653 25 992

Total Revenue from Government 34 919 38 653 25 992


2010$ 000

2009$ 000

Creditors 5 876 8 715

Total 5 876 8 715


Total 5 876 8 715

17.6 Administered Payables

17.8 Financial Instruments (Administered)


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

• credit risk


• 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.


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 Assets

Receivables 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.




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

The Agency did not have any administered receivables at 30 June 2010 and 30 June 2009 that were past due.

2010$ 000

2009$ 000

Net result (11 169) 11 376

Decrease (increase) in receivables 14 008 (16 341)

Increase (decrease) in payables (2 839) 4 965

Net Cash from (used by) Operating Activities — —

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






Payables 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.


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:

Maturity Analysis for Administered Financial Liabilities

2010 1 Year

$ 000

2 Years

$ 000

3 Years

$ 000

4 Years

$ 000

5 Years

$ 000

More than 5 Years

$ 000


Carrying Amount

$ 000


Payables 5 876 — — — — — 5 876 5 876

Total 5 876 — — — — — 5 876 5 876


2009 1 Year

$ 000

2 Years

$ 000

3 Years

$ 000

4 Years

$ 000

5 Years

$ 000



Carrying Amount

$ 000


Payables 8 715 — — — — — 8 715 8 715

Total 8 715 — — — — — 8 715 8 715

(d) Market Risk

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.

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.

(c) Liquidity Risk

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.


2010$ 000

2009$ 000



Total 2 333 16 341

Administered Financial Liabilities

Financial liabilities at fair value through profit and loss 5 876 8 715

Total 5 876 8 715

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


Equity





30 June 2010

Financial assets — — — —


Net Sensitivity — — — —

30 June 2009





17.9 Categories of Administered Financial Assets and Liabilities

2010$ 000

2009$ 000

Administered Fixed Rate Instruments



Total — —

Administered Variable Rate Instruments — —



Total — —

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.


17.10 Net Fair Values of Administered Financial Assets and Liabilities


$ 000

Net Fair Value

Level 1$ 000

Net Fair Value

Level 2$ 000

Net Fair Value

Level 3$ 000



Other — — — — —

Total Administered Financial Assets

— — — — —

Administered Financial Liabilities(Recognised)

— — — — —

Other — — — — —

Total Administered Financial Liabilities (Recognised)

— — — — —


$ 000

Net Fair Value

Level 1$ 000

Net Fair Value

Level 2$ 000

Net Fair Value

Level 3$ 000



Other — — — — —

Total Administered Financial Assets

— — — — —

Administered Financial Liabilities(Recognised)

— — — — —

Other — — — — —

Total Administered Financial Liabilities (Recognised)

— — — — —

The Agency uses various methods in estimating the fair value of a financial instrument. The methods comprise:





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


2010$ 000

2009$ 000

Opening Balance



Purchases — —

Sales — —




— —


Note 18 Transactions and Balances Relating to a Trustee or Agency Arrangement

Account/Activity Opening Balance

$ 000

Net Transactions during 2009-2010

$ 000

Closing Balance

$ 000

T470 Patient Trust and Bequest Account – Legal Trusts 1 688 312 2 000

Launceston General Hospital Patient Property Account — — —

Royal Hobart Hospital Patients Trust Account 5 1 4

Royal Hobart Hospital Private Patients Scheme 1 298 204 1 502

Mental Health Services Client Trust Account 257 34 223

Mental Health Services Howard Hill Centre 1 1 —

Beaconsfield Hospital Patients Trust Account 21 7 14

Campbell Town District Hospital Patients Trust Account 31 11 20

The Agency does not have any Level 3 financial assets or financial liabilities.


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

Administered Financial Liabilities

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



Statement of Comprehensive Income for the Year Ended 30 June 2010

Notes 2010Actual

$ 000

2009Actual

$ 000

Continuing Operations


Attributed revenue from Government

Attributed appropriation revenue - recurrent 1.6(a), 3.1 42 534 34 016

Attributed appropriation revenue - works and services 1.6(a), 3.1 2 091 2 930

Attributed revenue from Special Capital Investment Funds 3.2 1 068 468

Grants 1.6(b), 3.3 — 568

Sales of goods and services 1.6(c), 3.4 4 455 4 786

Interest 1.6(d) — 1

Other revenue 1.6(e), 3.5 538 437

Total Revenue and Other Income from Transactions 50 686 43 206


Attributed employee benefits 1.7(a), 4.1 28 864 26 166

Depreciation and amortisation 1.7(b), 4.2 2 153 1 789

Administration 4.3 4 400 3 607

Supplies and consumables 4.4 8 252 7 277

Grants and subsidies 1.7(c), 4.5 70 20

Other expenses 1.7(d), 4.6 2 487 2 138

Total Expenses from Transactions 46 226 40 997

Net Result from Transactions (Net Operating Balance) 4 460 2 209


Net gain/(loss) on non-financial assets 1.8(a)(c), 5.1 204 81

Net actuarial gains/(losses) of superannuation defined benefit plans 11.5 2 593 (5 867)


1.8(b), 5.2 (93) (52)

Total Other Economic Flows included in Net Result 2 704 (5 838)

Net Result from Continuing Operations 7 164 (3 629)

Other Economic Flows – Other Non-Owner Changes in Equity

Changes in physical asset revaluation reserve 9.1 559 589

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

559 589

Comprehensive Result 7 723 (3 040)

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



Statement of Financial Position as at 30 June 2010

Notes 2010Actual

$ 000

2009Actual

$ 000

Assets

Financial assets

Cash and deposits 2.11(a), 9.2 — —

Receivables 2.11(b), 6.1 2 622 1 350

Non-f inancial assets

Inventories 1.9(d), 6.2 596 603

Property, plant and equipment 1.9(e), 6.3 29 768 25 661

Other assets 1.9(g), 6.4 — 27

Total Assets 32 986 27 641

Liabilities

Financial liabilities

Payables 1.10(a), 7.1 558 1 031

Non-f inancial liabilities

Attributed employee benefits 1.10(c), 7.2 9 070 8 683

Superannuation 1.10(d), 7.3 1 151 3 556

Other liabilities 1.10(e), 7.4 619 506

Total Liabilities 11 398 13 776

Net Assets (Liabilities) 21 588 13 865

Equity

Reserves 9.1 16 455 15 896

Accumulated funds 5 133 (2 031)

Total Equity 21 588 13 865

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



Statement of Cash Flows for the Year Ended 30 June 2010

Notes 2010Actual

$ 000

2009Actual

$ 000

Inflows (Outflows)

Inflows (Outflows)

Cash Flows from Operating Activities

Cash Inflows

Attributed appropriation receipts - recurrent 42 534 34 016

Attributed appropriation receipts - capital 2 090 2 930

Receipts from Special Capital Investment Funds 1 068 —

Sales of goods and services 3 092 3 995

Interest received — —

Other cash receipts 538 1 153

Total Cash Inflows 49 322 42 094

Cash Outflows

Attributed employee benefits (28 337) (25 134)

Grants and transfer payments (70) (20)

Supplies and consumables (12 473) (11 195)

Other cash payments (2 339) (2 084)

Total Cash Outflows (43 219) (38 433)

Net Cash from (used by) Operating Activities 10.2 6 103 3 661

Cash Flows from Investing Activities

Cash Inflows

Repayment of loans 1 7

Proceeds from the disposal of non-financial assets 236 124

Total Cash Inflows 237 131

Cash Outflows

Payments for acquisition of non-financial assets (6 274) (5 646)

Total Cash Outflows (6 274) (5 646)

Net Cash from (used by) Investing Activities (6 037) (5 515)

Cash on restructure — 336

Net increase (decrease) in cash held by central DHHS operating account attributable to the Tasmanian Ambulance Service 66 (1 518)

Eliminate portion of operating account attributable to DHHS (66) 1 518

Net Increase (Decrease) in Cash Held and Cash Equivalents — —

Cash and Deposits at the Beginning of the Reporting Period — —

Cash and Deposits at the End of the Reporting Period 10.1 — —

The Tasmanian Ambulance Service does not have its own bank account as all cash transactions are processed by the

Department of Health and Human Services (DHHS).

This Statement of Cash Flows should be read in conjunction with the accompanying notes.



Statement of Changes in Equity for the Year Ended 30 June 2010

Notes Reserves

$000


Deficit$000

TotalEquity

$000

Balance as at 1 July 2009 15 896 (2 031) 13 865

Adjustment due to change in accounting policy 1.5 — — —

15 896 (2 031) 13 865

Total comprehensive result 559 7 164 7 723

Balance as at 30 June 2010 16 455 5 133 21 588

Notes Reserves

$000


Deficit$000

TotalEquity

$000

Balance as at 1 July 2008 15 307 72 15 379

Adjustment due to change in accounting policy 1.5 — — —

15 307 72 15 379

Total comprehensive result 589 (3 629) (3 040)

Transactions with owners in their capacity as owners:

Equity contributions — 1 526 1 526

Balance as at 30 June 2009 15 896 (2 031) 13 865

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


Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2010

Notes Page No.

Note 1 Significant Accounting Policies 232

1.1 Objectives and Funding








1.9 Assets

1.10 Liabilities

1.11 Leases




1.15 Rounding

1.16 Taxation


Note 2 Events Occurring After Balance Date 239

Note 3 Revenue and Other Income from Transactions 240

3.1 Attributed Revenue from Government

3.2 Attributed Revenue from Special Capital Investment Funds

3.3 Grants

3.4 Sales of Goods And Services

3.5 Other Revenue

Note 4 Expenses from Transactions 241

4.1 Attributed Employee Benefits


4.3 Administration



4.6 Other Expenses

Note 5 Other Economic Flows included in Net Result 242

5.1 Net Gain/(loss) on Non-Financial Assets


Note 6 Assets 243

6.1 Receivables

6.2 Inventories


6.4 Other Assets

Note 7 Liabilities 245

7.1 Payables


7.3 Superannuation


Note 8 Commitments and Contingencies 249

8.1 Schedule of Committments

Note 9 Reserves 2509.1 Reserves


Notes Page No.

Note 10 Cash Flow Reconciliation 25010.1 Cash and Deposits


Note 11 Financial Instruments 25111.1 Risk Exposures





Note 1 Significant Accounting Policies1.1 Objectives and Funding

The Tasmanian Ambulance Service (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 507 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 (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.


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

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

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

The Financial Statements were signed by the Director of Ambulance Services and Secretary of the Department of Health and Human Services on 13 August 2010.

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 and 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 Service in their present form, undertaking their current activities, is dependent on Government policy and on continuing appropriations by Parliament for the Agency and Service’s administration and activities.


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.


(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 101 Presentation of Financial Statements - This Standard has been revised and introduces a number of terminology changes as well as changes to the structure of the Statement of Changes in Equity and the Statement of Comprehensive Income. It is now a requirement that owner changes in equity be presented separately from non-owner changes in equity. There is no financial impact resulting from the application of this revised Standard.


• AASB 123 Borrowing Costs - This Standard has been revised to mandate the capitalisation of all borrowing costs attributable to the acquisition, construction or production of qualifying assets. AASB 2009-1 Amendments to Australian Accounting Standards - Borrowing Costs of Not-for-Profit Public Sector Entities [AASB 1, AASB 111 and AASB 123] issued in April 2009 allows not-for-profit public sector entities to continue to choose whether to expense or capitalise borrowing costs relating to qualifying assets. There is no financial impact resulting from the application of this revised Standard.

• AASB 2009-2 Amendments to Australian Accounting Standards: Improving Disclosures about Financial Instruments - Introduces new disclosure requirements for fair value measurement and refines existing disclosures on liquidity risk for financial instruments. There is no financial impact from the application of this Standard.

• AASB 2009-10 Amendments to Australian Accounting Standards: Reclassif ication of Financial Instruments permits the reclassification of certain non-derivative financial assets. The Agency did not reclassify its financial assets in the current period; accordingly there will be no financial impact.

• AASB Interpretation 14 AASB 119 the Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction - the interpretation clarifies when refunds or reductions in future contributions in relation to defined benefit assets should be regarded as available and provides guidance on the impact of minimum funding requirements on such assets. It also gives guidance on when a Minimum Funding Requirement might give rise to a liability. The Interpretation will not have a material financial impact on the Agency’s Financial Statements.

(b) Impact of new and revised Accounting Standards yet to be applied

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

• AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 - revised Standard to be applied from reporting periods beginning on or after 1 January 2010. This Standard changes the term “general purpose financial report” to “general purpose Financial Statements” and the term “financial report” to “Financial Statements”, where appropriate, in AAS (including Interpretations) and the Framework to better align with IFRS terminology. The Standard will not have a financial impact on the Agency’s Financial Statements.

• AASB 2009-3 Amendments to Accounting Standards arising from AASB 3 and AASB 127 - revised Standard to be applied to annual reporting periods beginning on or after 1 July 2010. The focus of the Standard is to reduce alternatives in accounting for subsidiaries in consolidated Financial Statements and in accounting for investments in the separate Financial Statements of a parent. The Standard will not have a material financial impact on the Agency’s Financial Statements.

• AASB 2009-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project - revised Standard to be applied from reporting periods beginning on or after 1 January 2010. The amendments to some Standards result in accounting changes for presentation, recognition or measurement purposes, while some amendments that relate to terminology and editorial changes are expected to have no or minimal effect on accounting. The Standard will not have a material financial impact on the Agency’s Financial Statements.

• AASB 2009-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project - revised Standard to be applied from annual reporting periods beginning on or after 1 July 2010. This Standard amends AASB 1 and AASB 5 to include requirements relating to a sale plan involving the loss of control of a subsidiary. The amendments require all the assets and liabilities of such a subsidiary to be classified as held for sale and clarify the disclosures required when the subsidiary is part of a disposal group that meets the definition of a discontinued operation. The Standard will not have a financial impact on the Agency’s Financial Statements.

• AASB 2009-7 Amendments to Australian Accounting Standards - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate - revised Standard to be applied from reporting periods beginning on or after 1 January 2010. The Standard removes the requirement to deduct dividends declared out of pre-acquisition profits from the cost of an investment in a subsidiary, jointly controlled entity or associate and to include recognising a dividend from a subsidiary, jointly controlled entity or associate, together with other evidence, as an indication that the investment in the subsidiary, jointly controlled entity or associate may be impaired. The Standard will not have a financial impact on the Agency’s Financial Statements.


• AASB 2009-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 – Distributions of Non-cash Assets to Owners - revised Standard to be applied from annual reporting periods beginning on or after 1 July 2010. The amendments are in respect of the classification, presentation and measurement of non-current assets held for distribution to owners in their capacity as owners and the disclosure requirements for dividends that are declared after the reporting period but before the Financial Statements are authorised for issue, respectively. The Standard will not have a material financial impact on the Agency’s Financial Statements.

(c) Voluntary Changes in Accounting Policy

The Service has not adopted new accounting policies during the financial year ended 30 June 2010.


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.

(a) Revenue from Government

Attributed appropriations, whether recurrent or capital, are recognised as revenues in the period in which the Service gains control of the appropriated funds. Except for any amounts identified as carried forward in Note 3.1 and control arises in the period of appropriation.

(b) Grants

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.

(c) Sales of Goods And Services

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.

(d) Interest

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

(e) Other Revenue

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.


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

(a) Attributed Employee Benefits

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.


(b) Depreciation and Amortisation

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:

Vehicles 5 years

Plant and equipment 2-20 years

Medical equipment 4-20 years

Buildings 40-50 years

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 Service. Major amortisation periods are:

Software 3-5 years

(c) Grants and Subsidies

Grant and subsidies expenditure is recognised to the extent that:

• The services required to be performed by the grantee have been performed.

• 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.

(d) Other Expenses

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


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

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

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

(b) Impairment – Financial Assets

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 and available- for-sale financial assets that are debt securities, the reversal is recognised in profit or loss. For available-for-sale financial assets that are equity securities, the reversal is recognised directly in equity.


(c) Impairment – Non-Financial Assets

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.

All impairment losses are recognised in Statement of Comprehensive Income.

An impairment loss in respect of goodwill is not reversed. 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 extent 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

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.

(a) Cash and Deposits

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. Deposits are recognised at amortised cost, being their face value.

(b) Receivables

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.

(c) Other Financial Assets

Other financial assets are recorded at fair value and include the Tasmanian Ambulance Service Superannuation Scheme, accrued interest and deferred interest.

(d) Inventories

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.

(e) Property, Plant, Equipment and Infrastructure

(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.

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

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 profit or loss 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 are revalued annually based on municipal indices. In addition, the Service’s land and building assets were revalued independently by Brothers and Newton Pty Ltd as at 30 June 2010 using indices.

(f ) Intangibles

An intangible asset is recognised where:

• It is probable that an expected future benefit attributable to the asset will flow to the Service.

• The cost of the asset can be reliably measured.

Intangible assets held by the Service are valued at cost less any subsequent accumulated amortisation and any subsequent accumulated impairment losses.

(g) Other Assets

Other assets are recorded at fair value and include prepayments.

1.10 Liabilities

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.

(a) Payables

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.

(b) Provisions

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.

(c) Attributed Employee Benefits

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 as the amount expected to be paid. Other employee entitlements are measured as the present value of the benefit at 30 June 2010, 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.


(d) Superannuation

(i) Defined Contribution Plans

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’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.

(e) Other Liabilities

Other 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.

1.11 Leases

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 AAS, 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.

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.

The Service has made no assumptions concerning the future that may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.


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 are at Note 1.5.

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.

1.15 Rounding

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.

1.16 Taxation

The Service 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 ATO is, in accordance with the AAS, classified as operating cash flows.

Note 2 Events Occurring After Balance DateThere have been no events subsequent to balance date which would have a material effect on the Service’s Financial Statements as at 30 June 2010.


Section 8A(2) of the Public Account Act 1986 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.

3.2 Attributed Revenue from Special Capital Investment Funds

Funding for major infrastructure projects is provided through Special Capital Investment Funds. The Service is allocated funding for specific projects from the Special Capital Investment Funds as part of the Budget process.

3.3 Grants

Note 3 Revenue and Other Income from Transactions3.1 Attributed Revenue from Government

Attributed revenue from Government includes revenue from attributed appropriations and attributed appropriations carried forward under section 8A(2) of the Public Account Act 1986.

2010Actual

$ 000

2009Actual

$ 000

Attributed appropriation revenue - recurrent

Current year 42 534 34 016

Total 42 534 34 016

Attributed appropriation revenue – works and services 2 091 2 930

Revenue from Government - other

Attributed appropriation carried forward under section 8A(2) of the Public Account Act 1986 taken up as revenue in the current year

— —

Total 2 091 2 930

Total Revenue from Government 44 625 36 946

2010Actual

$ 000

2009Actual

$ 000

Economic and Social Infrastructure Fund 1 068 468

Total 1 068 468

2010$ 000

2009$ 000

Grants from the Australian Government

General grants — 568

Total — 568

2010$ 000

2009$ 000

Ambulance fees 2 275 2 168

Other user charges 2 180 2 618

Total 4 455 4 786



2010$ 000

2009$ 000

Salaries and wages recoveries — 15

Workers compensation recoveries 454 422

Operating recoveries 84 —

Total 538 437

3.5 Other Revenue

2010$ 000

2009$ 000

Plant, equipment and vehicles 1 919 1 620

Buildings 234 169

Total 2 153 1 789

2010$ 000

2009$ 000

Corporate overhead charge 2 336 2 350

Communication 552 507

Information technology 1 089 406

Other administration 423 344

Total 4 400 3 607

2010$ 000

2009$ 000

Wages and salaries 22 024 20 241


Long service leave 742 819

Sick leave 768 650

Superannuation – defined contribution scheme 2 573 2 187

Other post-employment benefits 99 301

Other employee expenses – staff allowances 250 187

Total 28 864 26 439

Note 4 Expenses from Transactions 4.1 Attributed Employee Benefits

Superannuation expenses relating to defined benefits schemes relate to payments into the Superannuation Provision Account (SPA) 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 11 per cent of salary.

Superannuation expenses relating to the defined contribution scheme are paid directly to the superannuation fund 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 two per cent of salary in respect of employees who are members of the contribution scheme.


(a) Depreciation

4.3 Administration


2010$ 000

2009$ 000

General maintenance 154 140

Building and infrastructure maintenance 237 148

Client travel 3 583 3 616

Equipment and furniture 1 080 694

Patient and client expenses 1 1

Medical, surgical and pharmacy supplies 1 295 784

Rent 63 31

Travel and transport 1 429 1 360

Other supplies and consumables 410 503

Total 8 252 7 277

2010$ 000

2009$ 000

Grants – Volunteer Ambulance Officers 70 20

Total 70 20

2010$ 000

2009$ 000

Audit fees – Financial Audit 11 17

Operating lease costs 24 11

Salary on costs 2 452 2 110

Total 2 487 2 138



4.6 Other Expenses

2010$ 000

2009$ 000

Net gain on disposal of physical assets 204 81

Total Net Gain/(loss) on Non-Financial Assets 204 81

2010$ 000

2009$ 000

Impairment of:

Loans and receivables (93) (52)

Total Net Gain/(loss) on Financial Instruments (93) (52)

Note 5 Other Economic Flows included in Net Result 5.1 Net gain/(loss) on Non-Financial Assets



Reconciliation of Movement in Provision for Impairment of Receivables

2010$ 000

2009$ 000

Carrying Amount at 1 July 143 146

Increase/(decrease) in provision recognised in profit or loss 45 (3)

Carrying Amount at 30 June 188 143

2010$ 000

2009$ 000


Less: Provision for impairment (188) (143)

Total 2 622 1 350


Total 2 622 1 350


Total 2 622 1 350

Note 6 Assets6.1 Receivables

2010$ 000

2009$ 000

Medical and pharmacy supplies 531 527

General supplies 65 76

Total 596 603

Settled within 12 months 596 603

Total 596 603

6.2 Inventories


2010$ 000

2009$ 000

Land

Service land at fair value as at 30 June 7 461 7 461


Total 7 461 7 461

Buildings

Service buildings at fair value as at 30 June 10 195 9 696



Total 10 178 9 693

Plant, Equipment and Vehicles

At cost 16 990 17 532



8 052 7 548

Work in progress at cost 2 245 787

Total 10 297 8 335

Building Works in Progress

Service works at cost 1 832 172

Total 1 832 172

Total Property, Plant and Equipment 29 768 25 661


(a) Carrying Amount

The Service’s land and building assets were revalued independently by Brothers and Newton Pty Ltd as at 30 June 2010 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.

2010 Land

$ 000

Building

$ 000

PlantEquipment

andVehicles

$ 000


$ 000

Total

$ 000

Carrying Value at 1 July 2009 7 461 9 693 7 548 959 25 661

Additions — 160 2 455 1 660 4 275

Disposals — — (33) — (33)

Revaluation increments (decrements) — 559 — — 559

Net transfers — — — (787) (787)

Work in progress at cost — — 2 245 — 2 245

Depreciation and amortisation — (234) (1 918) — (2 152)

Carrying Value at 30 June 2010 7 461 10 178 10 297 1 832 29 768


2009 Land

$ 000

Building

$ 000

PlantEquipment

andVehicles

$ 000


$ 000

Total

$ 000

Carrying Value at 1 July 2008 7 089 8 460 5 631 35 21 215

Additions 160 345 3 553 1 604 5 662

Disposals — — (16) — (16)

Revaluation increments (decrements) 212 377 — — 589

Net transfers — 680 — (680) —

Depreciation and amortisation — (169) (1 620) — (1 789)

Carrying Value at 30 June 2009 7 461 9 693 7 548 959 25 661

2010$ 000

2009$ 000

Other Current Assets

Prepayments — 27

Total — 27

Settled within 12 months — 27

Total — 27

2010$ 000

2009$ 000

Carrying Amount at 1 July 27 —

Additions — 27

Disposals 27 —

Carrying Amount at 30 June — 27

6.4 Other Assets

(a) Carrying Amount


Note 7 Liabilities

7.1 Payables

2010$ 000

2009$ 000

Creditors 558 1 031

Total 558 1 031

Settled within 12 months 558 1 031

Total 558 1 031




2010$ 000

2009$ 000

Attributed accrued salaries 1 405 1 733

Attributed annual leave 4 143 4 043

Attributed long service leave 3 522 2 907

Total 9 070 8 683



Total 9 070 8 683

7.3 Superannuation

(a) Type of Plan


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 2010 using the process outlined in AASB standard 119 Employee Benefits. As a result of the revaluation it was determined that the TASSS was in deficit by $1.151 million (2009 $3.556 million deficit). The movement over the financial year was primarily caused by an investment profit due to the increase in the market value of assets.

TasmanianAmbulance

Service Superannuation

Scheme

Total Liability

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Present value of funded liability 34 541 33 490 34 541 33 490

Fair value of plan assets (33 390) (29 934) (33 389) (29 934)

(Surplus)/Deficit 1 151 3 556 1 152 3 556

Net actuarial gains not recognised — — — —

Restrictions on assets recognised — — — —

Other — — — —

Total — — — —

Settled within 12 months 1 151 1 397 1 152 1 397

Settled in more than 12 months — 2 159 — 2 159

Total 1 151 3 556 1 152 3 556

TasmanianAmbulance


Scheme2010 2009

Discount rate (net of tax) 4.90% 5.20%

Expected return on assets 7.00% 7.00%

Expected rate of salary increases 4.50% 5.00%

Inflation (pension) n/a n/a

(c) Key Actuarial Assumptions

(b) Superannuation Liability


TasmanianAmbulance


Scheme

Total Liability

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Balance at 1 July 33 490 32 262 33 490 32 262

Current service cost 1 895 1 917 1 895 1 917

Interest cost 1 668 1 692 1 668 1 692

Contributions by members and transfers from other funds 928 939 928 939

Actuarial losses/(gains) (1 806) (708) (1 806) (708)

Benefits paid (1 288) (2 477) (1 288) (2 477)

Other (346) (135) (346) (135)

Balance at 30 June 34 541 33 490 34 541 33 490

TasmanianAmbulance


Scheme

Total Liability

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Balance at 1 July 29 934 34 300 29 934 34 300

Expected return on plan assets 2 104 2 551 2 104 2 551

Actuarial losses/(gains) 787 (6 576) 787 (6 576)

Employer contributions 1 272 1 332 1 272 1 332

Contributions by plan participants 928 939 928 939

Benefits paid (1 288) (2 477) (1 288) (2 477)

Other (348) (135) (348) (135)

Balance at 30 June 33 389 29 934 33 389 29 934

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

(e) Reconciliation of Movements In Plan Assets

(f) Return on Plan Assets


The actual return on plan assets was a $2.89 million gain (2009 $4.025 million loss or approximately 5.14 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 7.00 per cent for the strategic asset allocation of the plan assets.



Superannuation Scheme

Total

2010$ 000

2009$ 000

2010$ 000

2009$ 000

Current service cost 1 895 1 917 1 895 1 917

Interest cost 1 668 1 692 1 668 1 692

Expected return on plan assets (2 104) (2 551) (2 104) (2 551)

Recognised actuarial (gains)/losses (2 592) 5 867 (2 592) 5 867

Other 1 272 1 332 1 272 1 332

Total 139 8 257 139 8 257

Tasmanian Ambulance Service Superannuation SchemeStrategic Asset Allocation

Asset Allocation

30 June 2010

%

30 June 2009

%

Equity instruments 48 48

Fixed interest 12 11

Property 16 16

Alternative investments 20 17

Cash 4 8

Total 100 100


2010$ 000

2009$ 000

2008$ 000

2007$ 000

2006$ 000

Fair value of plan assets 33 389 29 934 34 300 37 099 33 377


Surplus/(deficit) 1 151 (3 556) 2 038 6 003 5 883

Experience adjustments on plan liabilities (787) (1 140) 317 3 520 (3 377)

Experience adjustments on plan assets (1 299) 6 576 4 401 (2 203) (2 057)

The history of experience adjustments is as follows:

(g) Amounts Recognised in Profit or Loss

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

(h) Funding Arrangements

Contributions to the TASSS in respect of defined benefit schemes are made on an emerging cost basis.

During the 2010-2011 financial year, the Service expects to make a contribution of $1.369 million (2010 $1.272 million) to the defined benefit plan for the TASSS.

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


Note 8 Commitments and Contingencies

8.1 Schedule of Commitments

2010$ 000

2009$ 000

Other Liabilities

Employee benefits – on-costs 619 506

Other — —

Total 619 506

Settled within 12 months 360 349

Settled in more than 12 months 259 157

Total 619 506


2010$ 000

2009$ 000

By Type

Capital commitments

Ambulance vehicles — 2 000

Total capital commitments — 2 000


Motor vehicles 335 789

Total lease commitments 335 789

Other commitments

RFDS air ambulance standing charge 3 674 15 119

Miscellaneous goods and services contracts 133 2 132

Total other commitments 3 807 17 251

By Maturity

Capital commitments

One year or less — 2 000

From one to five years — —

More than five years — —

Total capital commitments — 2 000

Operating lease commitments

One year or less 182 394

From one to five years 153 395

More than five years — —

Total operating lease commitments 335 789

Other commitments



More than five years 30 —

Total other commitments 3 807 17 251

Total 4 142 20 040


Motor Vehicles (Operating Lease)

The Government 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 are for a period of two years or 40 000 kms, whichever comes first, with no change to the lease rate. No restrictions or purchase options are contained in the lease.

RFDS Air Ambulance Standing Charge

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. For the 2009 Financial Statements the commitment was calculated based on a rolling five year contract which is now under review.

Miscellaneous Goods and Services Contracts

The miscellaneous goods and services contracts include a maintenance contract and other minor miscellaneous contracts. For the 2009 Financial Statements the commitments were based on a maintenance contract and a rolling five year contract for a Tasmanian Fire Service radio upgrade and a Victoria Ambulance Clinical Information System (VACIS) agreement which are not contracted agreements.

Capital Commitments

During 2009-2010 the Service acquired 21 ambulance vehicles with the Capital Commitment existing as at 30 June 2009 being extinguished.

Note 9 Reserves

9.1 Reserves

Note 10 Cash Flow Reconciliation

10.1 Cash and Deposits

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

2010$ 000

2009$ 000

Physical asset revaluation reserve

Balance at the beginning of financial year 15 896 15 307

Revaluation increments/(decrements) 559 589

Balance at End of Financial Year 16 445 15 896

2010$ 000

2009$ 000

Special Deposits and Trust Fund Balance

T510 DHHS Operating Account — —

Total — —

Other Cash Held — —

Total — —

Cash equivalents — —

Total Cash and Deposits — —

(a) Nature and Purpose of Reserves


The Asset Revaluation Reserve is used to record increments and decrements on the revaluation of non-financial assets, as described in Note 1.9(e).


2010$ 000

2009$ 000

Net result 7 164 3 629

Depreciation and amortisation 2 153 1 789

(Gain) loss from sale of non-financial assets (204) (81)

Impairment losses 93 52

Decrease (increase) in receivables (1 317) (651)

Decrease (increase) in prepayments 27 (27)

Decrease (increase) in inventories 7 (232)

Decrease (increase) in superannuation assets — 2 038

Increase (decrease) in attributed employee entitlements 387 1 326

Increase (decrease) in superannuation liabilities (2 405) 3 556

Increase (decrease) in payables (185) 168

Increase (decrease) in other liabilities 113 (312)

Net Cash from (used by) Operating Activities 5 833 3 661


Note 11 Financial Instruments

11.1 Risk Exposures


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

• credit risk


• market risk.

The Head of Service has overall responsibility for the establishment and oversight of the Service’s risk management framework. Risk management policies are established to identify and analyse risks faced by the Service, 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 Service if a customer or counterparty to a financial instrument fails to meet its contractual obligations.



Financial Assets

Loans and Receivables 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.





The Service has made no changes to its credit risk policy or policy for the calculation of provision for impairment during 2009-2010. The Service does not hold any security instrument for its cash and deposits and receivables. No credit terms on any departmental 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 Service’s maximum exposure to credit risk without taking into account of any collateral or other security:

2010$ 000

2009$ 000

Guarantee provided — —

Total — —

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

(c) Liquidity Risk

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


Past Due < 30 days

$ 000

Past Due > 45 days

$ 000

Past Due > 60 days

$ 000

Total

$ 000



Past Due < 30 days

$ 000

Past Due > 45 days

$ 000

Past Due > 60 days

$ 000

Total

$ 000





Payables 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.


Other Financial Liabilities Other financial liabilities are recognised at amortised cost, which due to the short settlement period equates to face value, when the Service becomes obliged to make payments as a result of the purchase of assets or services.

The Service regularly reviews budgeted and actual cash outflows to ensure that there is sufficient cash to meet all obligations.



The following tables detail the undiscounted cash flows payable by the Service 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:


2010 1 Year

$ 000

2 Years

$ 000

3 Years

$ 000

4 Years

$ 000

5 Years

$ 000



Carrying Amount

$ 000


Payables 558 — — — — — 558 558


— — — — — — — —

Total 558 — — — — — 558 558


2009 1 Year

$ 000

2 Years

$ 000

3 Years

$ 000

4 Years

$ 000

5 Years

$ 000



Carrying Amount

$ 000


Payables — — — — — — — —


1 031 — — — — — 1 031 1 031

Total 1 031 — — — — — 1 031 1 031

(d) Market Risk

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 Service is exposed to is interest rate risk.

The Service 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.

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

2010$ 000

2009$ 000

Fixed Rate Instruments



Total — —

Variable Rate Instruments


Less: Financial liabilities — —

Total — —


2010$ 000

2009$ 000

Financial Assets

Financial assets at fair value through profit and loss – designated on initial recognition — —

Held-to-maturity investments — —


Available-for-sale financial assets — —

Total 2 622 1 350


Financial liabilities at fair value through profit and loss — —

Financial liabilities measured at amortised cost 558 1 031

Total 558 1 031

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


Equity


$ 000


$ 000


$ 000


$ 000

30 June 2010




30 June 2009






The Service’s maximum exposure to credit risk for its financial assets is $2.81 million (2009 $1.493 million).


The Service has made no reclassification of financial assets.



$ 000

Net Fair Value

Level 1$ 000

Net Fair Value

Level 2$ 000

Net Fair Value

Level 3$ 000


Financial Assets

Cash in Special Deposits and Trust Fund

— — — — —

Receivables 2 622 — 2 622 — 2 622


Financial Liabilities(Recognised)

Trade creditors 558 — 558 — 558

Total Financial Liabilities(Recognised)

558 — 558 — 558

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


2010$ 000

2009$ 000

Opening Balance



Purchases — —

Sales — —




— —


$ 000

Net Fair Value

Level 1$ 000

Net Fair Value

Level 2$ 000

Net Fair Value

Level 3$ 000


Financial Assets

Receivables 1 350 — 1 350 — 1 350


Financial Liabilities(Recognised)

Trade creditors 1 031 — 1 031 — 1 031

Total Financial Liabilities(Recognised)

1 031 — 1 031 — 1 031

The Service uses various methods in estimating the fair value of a financial instrument. The methods comprise:





The Service did not transfer any financial assets or financial liabilities between Level 1 and Level 2.

The Service does not have any Level 3 instruments.


Financial Assets

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


The net fair values of other financial liabilities are based on the outstanding value owed by the Service and are approximated by their carrying amounts. The net fair values for trade creditors are approximated by their carrying amounts.

259DHHS Annual Report 2008–2009 – Acronyms

AcronymsAAS Australian Accounting Standards

AASB Australian Accounting Standards Board

ABS Australian Bureau of Statistics

ACAP Aged Care and Assessment Program

AHO Australian Housing Organisation

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

DEM Department of Emergency Medicine

DFA Disability Framework for Action 2005-2010

DHHS Department of Health and Human Services

ED Emergency Department

FOI Freedom of Information

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

MFR Minimum Funding Requirement

NAHS Northern Area Health Service

NGO Non-Government Organisation

NWAHS North West Area Health Service

NWRH North West Regional Hospital

PDMR Patient Discharge Medication Report

PRSS Private Rental Support Scheme

RBF Retirement Benefits Fund

RFDS Royal Flying Doctors Service

RHH Royal Hobart Hospital

SAAP Supported Accommodation Assistance Program

SAMP Strategic Asset Management Plan

SEIFA Socio-Economic Indexes for Areas

SPA Superannuation Provision Account

STAHS Southern Tasmania Area Health Service

TAHL Tasmanian Affordable Housing Limited

TASSS Tasmanian Ambulance Service Superannuation Scheme

THP Tasmania’s Health Plan

TRMF Tasmanian Risk Management Fund

TT Tasmania Together

260DHHS Annual Report 2008–2009 – Contacting the DHHS

Contacting the Department of Health and Human ServicesCorporate 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.

Departm

ent of Health and H

uman Services A

nnual Report 2009–2010


GPO Box 125Hobart 7001 Tasmania

www.dhhs.tas.gov.au


Depar tment of Heal th and Human Ser vices

Annual Repor t 2009–2010

part 5 – financial statements€¦ · contributed capital 6 094 6 094 6 094 reserves 13.1 1 649...

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