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Part 4 Financial Statements Department of Health and Human Services

Statement of Comprehensive Income for the Year Ended 30 June 2013 163

Statement of Financial Position as at 30 June 2013 165

Statement of Cash Flows for the Year Ended 30 June 2013 167

Statement of Changes in Equity for the Year Ended 30 June 2013 169

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2013 170

Independent Auditor’s Report 269

Statement of Certification 271

Tasmanian Ambulance Service

Statement of Comprehensive Income for the Year Ended 30 June 2013 273

Statement of Financial Position as at 30 June 2013 275

Statement of Cash Flows for the Year Ended 30 June 2013 276

Statement of Changes in Equity for the Year Ended 30 June 2013 278

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2013 279

Independent Auditor’s Report 310

Statement of Certification 312

DHHS Annual Report 2012-2013 - Part 3 Financial Statements Page 163 of 314

Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Continuing Operations

Revenue and Other Income from Transactions

Revenue from Government

Appropriation revenue - recurrent 2.9(a) 1 187 539 1 105 351 1 530 234

Appropriation revenue - works and services 2.9(a) 7 928 15 543 67 441

Other revenue from Government 2.9(a) 0 484 367

Revenue from Special Capital Investment Funds 78 224 38 857 62 927

Grants 2.9(b), 8.1 135 606 83 176 63 600

Sales of goods and services 2.9(c), 8.2 104 626 100 085 185 868

Interest 2.9(d) 725 334 770

Contributions received 2.9(e), 8.3 0 1 488 0

Other revenue 2.9(f), 8.4 6 427 11 632 39 554

Total Revenue and Other Income from Transactions 1 521 075 1 356 950 1 950 761

Expenses from Transactions

Employee benefits 2.10(a), 9.1 269 369 276 137 1 002 020

Depreciation and amortisation 2.10(b), 9.2 27 363 34 584 61 044

Supplies and consumables 9.3 176 895 212 080 462 719

Grants and subsidies 2.10(c), 9.4 875 571 871 579 306 187

Finance costs 2.10(d), 9.5 9 326 9 326 9 626

Other expenses 2.10(f), 9.6 24 934 11 079 69 056

Total Expenses from Transactions 1 383 458 1 414 785 1 910 652

Net Result from Transactions (Net Operating Balance) 137 617 ( 57 835) 40 109

Other Economic Flows included in Net Result

Net gain/(loss) on non-financial assets 2.11(a)(c), 10.1 5 352 ( 7 712) ( 6 783)

Net actuarial gains/(losses) of superannuation defined benefit plans 12.4 0 8 263 ( 13 921)

2.12(b), 10.2 0 ( 1 202) ( 2 068)

Other gains/(losses) from other economic flows 2.12(d), 10.3 0 589 ( 699)

Total Other Economic Flows included in Net Result 5 352 ( 62) ( 23 471)

Department of Health and Human Services Statement of Comprehensive Income for the Year Ended 30 June 2013

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


Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Net Result from Continuing Operations 142 969 ( 57 897) 16 638

Other Comprehensive Income

Items that will not be reclassified subsequently to profit or loss

Changes in property, plant and equipment revaluation surplus 14.1 ( 38 468) 34 396 13 261

Total other Comprehensive Income ( 38 468) 34 396 13 261

Comprehensive Result 104 501 ( 23 501) 29 899

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

estimates reflected in the 2012-2013 Budget Papers 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.


Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Assets

Financial assets

Cash and deposits 2.12(a), 15.1 39 368 76 385 85 650

Receivables 2.12(b), 11.1 16 098 5 919 28 343

Loan advances 2.12(c), 11.2 3 077 3 730 4 567

Equity investments 2.12(d), 11.3 7 752 6 782 4 623

Other financial assets 2.12(e), 11.4 9 546 4 838 1 160

Non-financial assets

Inventories 2.12(f), 11.5 10 061 6 008 13 832

Assets held for sale 2.12(g), 11.6 8 961 5 513 6 093

Property, plant and equipment 2.12(h), 11.7 2 665 268 2 255 589 2 898 600

Intangibles 2.12(i), 11.8 10 935 12 574 16 399

Other assets 2.12(j), 11.9 4 655 4 340 5 090

Total Assets 2 775 721 2 381 678 3 064 357

Liabilities

Payables 2.13(a), 12.1 11 739 9 184 38 760

Interest bearing liabilities 2.13(b), 12.2 202 840 202 840 209 808

Employee benefits 2.13(d), 12.3 79 741 61 792 208 492

Superannuation 2.13(e), 12.4 15 522 20 698 29 228

Other liabilities 2.13(f), 12.5 54 419 38 901 43 716

Total Liabilities 364 261 333 415 530 004

Net Assets 2 411 460 2 048 263 2 534 353

Department of Health and Human Services Statement of Financial Position as at 30 June 2013


Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Equity

Contributed capital 14.1 6 094 6 094 6 094

Reserves 14.1 1 923 096 1 940 250 1 921 389

Accumulated funds 482 270 101 919 606 870

Total Equity 2 411 460 2 048 263 2 534 353

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

estimates reflected in the 2012-13 Budget Papers and has not been subject to audit. Explanations of material variances between budget and actual



Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Cash Flows from Operating Activities

Inflows

(Outflows)

Inflows

(Outflows)

Inflows

(Outflows)

Cash Inflows

Appropriation receipts - recurrent 1 187 539 1 105 351 1 530 234

Appropriation receipts - works and services 0 2 356 6 980

15 463 11 687 13 249

Grants 135 606 83 176 63 666

Sales of goods and services 104 103 95 876 187 139

GST receipts 61 413 51 779 87 293

Interest received 725 381 701

Other cash receipts 9 922 11 632 41 306

Total Cash Inflows 1 514 771 1 362 238 1 930 568

Cash Outflows

Employee benefits ( 263 923) ( 275 505) ( 977 146)

Finance costs ( 9 326) ( 9 326) ( 9 626)

GST payments ( 61 408) ( 46 088) ( 85 912)

Grants and transfer payments ( 875 571) ( 745 306) ( 260 833)

Supplies and consumables ( 178 120) ( 222 009) ( 469 113)

Other cash payments ( 22 853) ( 10 156) ( 79 467)

Total Cash Outflows (1 411 201) (1 308 390) (1 882 097)

Net Cash from (Used By) Operating Activities 15.2 103 570 53 848 48 471

Department of Health and Human Services Statement of Cash Flows for the Year Ended 30 June 2013

Receipts from Special Capital Investment Funds


Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Cash Flows from Investing Activities

Cash Inflows

Proceeds from the disposal of non-financial assets 11 767 8 525 12 662

Receipts from Investments 0 726 0

Receipts from non-operational capital funding - Works and services 7 928 15 164 60 945

62 761 27 170 50 222

Repayment of loans by other entities 0 837 1 167

Total Cash Inflows 82 456 52 422 124 996

Cash Outflows

Payment for acquisition of non-financial assets ( 178 245) ( 75 015) ( 141 479)

Payments for investments ( 26 484) ( 1 911) ( 561)

Total Cash Outflows ( 204 729) ( 76 926) ( 142 040)

Net Cash from (Used By) Investing Activities ( 122 273) ( 24 504) ( 17 044)

Cash Flows from Financing Activities

Cash Outflows

Repayment of borrowings ( 6 968) ( 6 969) ( 6 812)

Cash transferred out on establishment of THOs 0 ( 31 640) 0

Total cash outflows ( 6 968) ( 38 609) ( 6 812)

Net cash from (used by) financing activities ( 6 968) ( 38 609) ( 6 812)

Net increase (decrease) in cash and cash equivalents held ( 25 671) ( 9 265) 24 615

Cash and deposits at the beginning of the reporting period 65 039 85 650 61 035

Cash and deposits at the end of the reporting period 15.1 39 368 76 385 85 650

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

reflected in the 2012-2013 Budget Papers and has not been subject to audit. Explanations of material variances between budget and actual


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


Contributed

Capital $'000

Reserves $'000

Accumulated

Funds $'000

Total Equity $'000

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

Net Result 0 0 ( 57 897) ( 57 897)

Other Comprehensive Income 0 34 396 0 34 396

Total comprehensive result 0 34 396 ( 57 897) ( 23 501)

Transfers from asset revaluation reserve to accumulated surplus 0 ( 15 535) 15 535 0

Administrative restructure - net assets transferred 2.8 0 0 ( 462 589) ( 462 589)

Balance as at 30 June 2013 6 094 1 940 250 101 919 2 048 263

Contributed

Capital $'000

Reserves $'000

Accumulated

Funds $'000

Total Equity $'000

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

Adjustment due to change in accounting policy 2.5 0 0 587 587

Restated balance as at 1 July 2011 6 094 1 908 128 590 232 2 504 454

Net Result 0 0 16 638 16 638

Other Comprehensive Income 0 13 261 0 13 261

Total comprehensive result 0 13 261 16 638 29 899

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

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

Department of Health and Human Services Statement of Changes in Equity for the Year Ended 30 June 2013


Notes Page No.

Note 1 Administered Financial Statements 173

1.1 Schedule of Administered Income and Expenses 173

1.2 Schedule of Administered Assets and Liabilities 174

1.3 Schedule of Administered Cash Flows 175

1.4 Schedule of Administered Changes in Equity 175

Note 2 Significant Accounting Policies 176

2.1 Objectives and Funding 176

2.2 Basis of Accounting 176

2.3 Reporting Entity 177

2.4 Functional and Presentation Currency 177

2.5 Changes in Accounting Policies 177

2.6 Administered Transactions and Balances 181

2.7 Activities Undertaken Under a Trustee or Agency Relationship 181

2.8 181

2.9 Income from transactions 183

2.10 Expenses from transactions 184

2.11 Other economic flows included in net result 186

2.12 Assets 187

2.13 Liabilities 189

2.14 Leases 191

2.15 Judgements and Assumptions 192

2.16 Foreign Currency 192

2.17 Comparative Figures 192

2.18 Budget Information 193

2.19 Rounding 193

2.20 Departmental Taxation 193

2.21 Goods and Services Tax 193

Note 3 Departmental Output Schedules 194

3.1 Output Group Information 194

3.2 Reconciliation of Total Output Groups Comprehensive Result of Comprehensive Income 209

3.3 209

3.4 Administered Output Schedule 210

Note 4 Expenditure under Australian Government Funding Arrangements 210

Note 5 Explanations of Material Variances between Budget and Actual Outcomes 211

5.1 Statement of Comprehensive Income 211

5.2 Statement of Financial Position 213

5.3 Statement of Cash Flows 214

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

Notes to and Forming Part of the Financial Statements for the Year Ended 30 June 2013

Transactions by the Government as Owner – Restructuring of Administrative Arrangements


Notes Page No.

Note 6 Events Occurring After Balance Date 215

Note 7 Underlying Net Operating Balance 216

Note 8 Income from transactions 217

8.1 Grants 217

8.2 Sales of goods and services 218

8.3 Contributions received 218

8.4 Other revenue 219

Note 9 Expenses from transactions 219

9.1 Employee benefits 219

9.2 Depreciation and amortisation 220

9.3 Supplies and consumables 221

9.4 Grants and subsidies 222

9.5 Finance costs 223

9.6 Other expenses 223

Note 10 Other economic flows included in net result 223

10.1 Net gain/(loss) on non-financial assets 223

10.2 Net gain/(loss) on financial instruments and statutory receivables/payables 224

10.3 Other gains/(losses) from other economic flows 224

Note 11 Assets 224

11.1 Receivables 224

11.2 Loan advances 225

11.3 Equity investments 226

11.4 Other financial assets 226

11.5 Inventories 226

11.6 Assets held for sale 227

11.7 Property, plant and equipment 227

11.8 Intangibles 230

11.9 Other assets 231

Note 12 Liabilities 232

12.1 Payables 232

12.2 Interest bearing liabilities 232

12.3 Employee benefits 232

12.4 Superannuation 233

12.5 Other liabilities 238


Notes Page No.

Note 13 Commitments and Contingencies 239

13.1 Schedule of Commitments 239

13.2 Contingent Assets and Liabilities 241

Note 14 Reserves 243

14.1 Reserves 243

Note 15 Cash Flow Reconciliation 244

15.1 Cash and deposits 244

15.2 Reconciliation of Net Result to Net Cash from Operating Activities 245

15.3 Acquittal of Capital Investment and Special Capital Investment Funds 245

15.4 Financing Facilities 249

Note 16 Financial Instruments 250

16.1 Risk exposures 250

16.2 Categories of Financial Assets and Liabilities 255

16.3 Reclassifications of Financial Assets 255

16.4 255

16.5 Net Fair Values of Financial Assets and Liabilities 256

Note 17 Details of Consolidated Entities 259

17.1 List of Entities 259

Note 18 Notes to Administered Statements 260

18.1 Explanations of Material Variances between Budget and Actual Outcomes 260

18.2 Administered underlying net operating balance 261

18.3 Administered Revenue from Government 261

18.4 Administered Grants 262

18.5 Administered Grants and subsidies 262

18.6 Administered Receivables 263

18.7 Administered Payables 263

18.8 264

18.9 Financial Instruments (Administered) 266

18.10 Categories of Administered Financial Assets and Liabilities 267

18.11 267

Note 19 Transactions and Balances Relating to a Trustee or Agency Arrangement 268

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

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

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


Note 1 Administered Financial Statements

1.1 Schedule of Administered Income and Expenses

Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Administered Revenue and Other Income from Transactions

Revenue from Government

Appropriation revenue - recurrent 2.9(a), 18.3 37 288 36 696 34 859

Grants 2.9(b), 18.4 0 0 45 479

Total Administered Revenue and Other Income from Transactions 37 288 36 696 80 338

Administered Expenses from Transactions

Grants and Subsidies 2.10(c), 18.5 37 288 37 782 35 720

Transfer to the Consolidated Fund 0 0 46 057

Supplies and consumables 0 3 988 0

Total Administered Expenses from Transactions 37 288 41 770 81 777

Administered Net Result from Transactions Attributable to the State 0 ( 5 074) ( 1 439)

Administered other Economic Flows in Administered Net Result 0 0 0

Administered Comprehensive Result 0 ( 5 074) ( 1 439)

The Children Abused in Care program was formally closed to new applicants on 15 February 2013. Processing of claims

ceased on 30 June 2013, but some claims remain to be paid. Claims paid in 2012-2013 amounted to $1.7 million.

The Department of Health and Human Services provides funding to Aurora Energy Pty Ltd for the purpose of providing

a subsidy to eligible Tasmanian pensioners and Health Care Card holders on their electricity accounts. In 2012-2013,

the Government provided funding of $34.9 million to eligible concession holders.

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

Budget information refers to original Budget estimates reflected in the 2012-2013 Budget Papers which has not been

subject to audit. Explanations of material variances between budget and actual outcomes are provided in Note 18.1 of

the accompanying notes.


1.2 Schedule of Administered Assets and Liabilities

Notes2013

Budget$'000

2013Actual

$'000

2012Actual

$'000

Administered Assets

Administered financial assets

Receivables 2.12(b), 18.6 0 0 3 988

Total Administered Assets 0 0 3 988

Administered liabilities

Payables 2.13(a), 18.7 0 9 127 8 041

Total Aadministered Liabilities 0 9 127 8 041

Administered Net Assets (Liabilities) 0 ( 9 127) ( 4 053)

Administered Equity

Accumulated Funds 0 ( 9 127) ( 4 053)

Total Administered Equity 0 ( 9 127) ( 4 053)

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

original Budget estimates reflected in the 2012-2013 Budget Papers which has not been subject to audit. Explanations of material variances between

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


1.3 Schedule of Administered Cash Flows

Notes

2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Administered Cash Flows from Operating Activities

Administered Cash Inflows

Appropriation receipts - recurrent 37 288 36 696 34 859

Grants - Continuing operations 0 3 988 46 057

Total Administered Cash Inflows 37 288 40 684 80 916

Administered Cash Outflows

Grants and subsidies ( 37 288) ( 36 696) ( 34 859)

Transfers to the Consolidated Fund 0 0 ( 46 057)

Supplies and consumables 0 ( 3 988) 0

Total Administered Cash Outflows ( 37 288) ( 40 684) ( 80 916)

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

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

0 0 0

0 0 0

1.4 Schedule of Administered Changes in Equity

AccumDeficit

$'000

Total Equity$'000

Balance as at 1 July 2012 ( 4 053) ( 4 053)

Net Result ( 5 074) ( 5 074)

Balance as at 30 June 2013 ( 9 127) ( 9 127)

AccumDeficit

$'000Total Equity

$'000

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

Net Result ( 1 439) ( 1 439)

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

Administered Cash and Deposits at the Beginning of the Reporting Period

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

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

Budget estimates reflected in the 2012-13 Budget Papers which has not been subject to audit. Explanations of material variances between budget

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

Administered Cash and Deposits at the End of the Reporting Period


Note 2 Significant Accounting Policies

2.1 Objectives and Funding

2.2 Basis of Accounting

The Department achieves this through the following strategic priorities: promoting health and wellbeing and intervening early when needed; planning and delivering services; delivering the benefits of reform; strengthening sustainability; and shaping our workforce.

Departmental activities are classified as either controlled or administered.

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

The Department 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 statements encompass all funds through which the Department controls resources to carry on its functions.

National Health Reform was implemented in Tasmania on 1 July 2012 with the establishment of three Tasmanian Health Organisations (THOs) under the Tasmanian Health Organisation Act 2011 , which received Royal Assent on 22 December 2011. Further details are provided in Note 2.8.

The Financial Statements are a general purpose financial report and have been prepared in accordance with Australian Accounting Standards (AAS) and Interpretations issued by the Australian Accounting Standards Board; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and, the Treasurer’s Instructions issued under the provisions of the Financial Management and Audit Act 1990.

The Department of Health and Human Services' (Department) objective is to improve the health and wellbeing of patients, clients and the Tasmanian community through a sustainable, high quality and safe health and human services system.

The Financial Statements were signed by the Secretary of the Department and Chief Financial Officer on 15 August 2013.


2.3 Reporting Entity

2.4 Functional and Presentation Currency

2.5 Changes in Accounting Policies

(a) Impact of New and Revised Accounting Standards

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

The Financial Statements include all the controlled activities of the Department, including Housing Tasmania, with the exception of Tasmanian Affordable Housing Limited (TAHL), and Ambulance Tasmania. The Financial Statements consolidate material transactions and balances of the Department and entities included in its output groups. Material transactions and balances between the Department and such entities have been eliminated. Summary information relating to TAHL is disclosed in Note 17 - Details of Consolidated Entities. TAHL has no material effect on the financial statements.

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

In the current year, the Department 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:

Compliance with the Australian Accounting Standards may not result in compliance with International Financial Reporting Standards (IFRS), as the AAS include requirements and options available to not-for-profit organisations that are inconsistent with IFRS. The Department 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 on a going concern basis. The continued existence of the Department, undertaking its current activities, is dependent on Government policy and on continuing appropriations by Parliament for the Department’s administration and activities.


·

·

·

·

·

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

AASB 2011‑15 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation (AASBs 127, 128 and 131) – This Standard extends the relief from consolidation, the equity method and proportionate consolidation by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate

parent entity to be IFRS compliant, provided that the parent entity, investor or venturer and the ultimate or intermediate parent entity are not‑for‑profit non‑reporting entities that comply with AAS. There is no financial impact.

AASB 2011‑9 Amendments to Australian Accounting Standards – Presentation of Items Other Comprehensive Income (AASBs 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 and 1049) – This Standard requires to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). There is no financial impact.

AASB 2012‑6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures (AASB 9, AASB 2009‑11, AASB 2010‑7, AASB 2011‑7 and AASB 2011‑8) – This Standard amends the mandatory effective date of AASB 9 Financial Instruments so that AASB 9 is required to be applied for annual reporting periods beginning on or after 1 January 2015 instead of 1 January 2013. There is no financial impact.

AASB 119 Employee Benefits – This Standard supersedes AASB 119 Employee Benefits , introducing a number of changes to accounting treatments. The Standard was issued in September 2012. The estimated superannuation expense (defined benefit cost) for the year ended 30 June 2014 has been

determined under the revised version of AASB 1119 issued in September 2011. The new standard also requires more detailed disclosure which will be included in next years fiancial statements.


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

·

·

·

·

·

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

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

AASB 13 will require an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. To the extent that any fair value measurement for an asset

or liability uses data that is not 'observable' outside the department, the amount of information to be disclosed will be relatively greater.

The Department has commenced reviewing its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to determine whether those methodologies comply with AASB 13. To the extent that the methodologies don't comply, changes will be necessary. While the Department is yet to complete this review, no substantial changes are anticipated, based on the fair value methodologies presently used. Therefore, at this stage, no consequential material impacts are expected for the Department's property, plant and equipment as from 2013-2014.

AASB 9 Financial Instruments – This Standard supersedes AASB 139 Financial Instruments: recognition and Measurement , introducing a number of changes to accounting treatments. The Standard was reissued in December 2010. The Standard was issued in August 2011 but is not yet available for application by not‑for‑profit entities. The Department has not yet determined the potential financial impact of the standard.

AASB 13 Fair Value Measurement – This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value measurements. AASB 13 Fair Value Measurement sets out a new definition of 'fair value' as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements will apply to all of the Department's assets and liabilities (excluding leases), that are measured and/or disclosed at fair value or another measurement based on fair value.

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


·

·

·

·

·

· AASB 2012‑5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009‑2011 Cycle (AASB 1, AASB 101, AASB 116, AASB 132 and AASB 134 and Interpretation 2) – This Standard makes amendments to the Australian Accounting Standards and Interpretations as a consequence of the annual improvements process. It is anticipated that there will not be any financial impact.

AASB 2012‑3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities (AASB 132) – This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria, including clarifying the meaning of “currently has a legally enforceable right of set‑off” and that some gross settlement systems may be considered equivalent to net settlement. It is anticipated that there will not be any financial impact.

AASB 2012‑2 Amendments to Australian Accounting Standards - Disclosures – Offsetting Financial Assets and Financial Liabilities (AASB 7 and AASB 132) – This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the entity’s financial position. It is anticipated that there will not be any financial impact.

AASB 2011‑10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) (AASB1, 8, 101, 124, 134, 1049, and 2011‑8 and Interpretation 14) – This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 in September 2011. It is anticipated that there will be limited financial impact.

AASB 2011‑8 Amendments to Australian Accounting Standards arising from AASB 13 (AASB 1, 2, 3, 4, 5, 7, 101, 116, 117, 118, 119, 120, 121, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 and 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 and 132) – This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. It is anticipated that there will not be any financial impact.

AASB 2011‑2 Amendments to AAS arising from the Trans‑Tasman Convergence Project – Reduced Disclosure Requirements (AASB 101 and AASB 1054) – This Standard removes disclosure requirements from other standards and incorporates them in a single Standard to achieve convergence between Australian and New Zealand Accounting Standards for reduced disclosure reporting. There is no expected financial impact of applying these changes, as the Department is a Tier 1 entity.


(c) Voluntary Changes in Accounting Policy

2.6 Administered Transactions and Balances

2.7 Activities Undertaken Under a Trustee or Agency Relationship

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

Transactions relating to activities undertaken by the Department in a trust or fiduciary (agency) capacity do not form part of the Department’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.

Net assets received under a restructuring of administrative arrangements are designated as contributions by owners and adjusted directly against equity. Net assets relinquished are designated as distributions to

owners. Net assets transferred are initially recognised at the amounts at which they were recognised by the transferring agency immediately prior to the transfer.

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

The Department has not adopted any new accounting policies during the financial year ended 30 June 2013.

The Department 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 Department’s objectives. Administered assets, liabilities, expenses and revenues are disclosed in Note 1 to the Financial Statements.

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

The THOs replace the Area Health Services previously managed by the Department of Health and Human Services. This has a significant impact on the quantum and type of expenditure managed by the Department and presented in its financial statements.


Transfer to THO - North$'000

Transfer to THO - North West$'000

Transfer to THO - South$'000

Transfer on 1 July 2012$'000

Assets

Financial assets

Cash and deposits ( 13 132) ( 3 282) ( 15 226) ( 31 640)

Receivables ( 3 959) ( 1 755) ( 8 195) ( 13 909)

Other financial assets ( 112) ( 318) ( 520) ( 950)

Non-financial assets 0 0 0

Inventories ( 3 103) ( 1 452) ( 4 398) ( 8 953)

Assets held for sale ( 719) 0 0 ( 719)

Property, plant and equipment ( 247 336) ( 84 815) ( 244 894) ( 577 045)

Intangibles ( 462) ( 2 576) ( 36) ( 3 074)

Other assets ( 1 242) ( 121) ( 896) ( 2 259)

Total Assets ( 270 065) ( 94 319) ( 274 165) ( 638 549)

Liabilities

Payables ( 4 280) ( 5 630) ( 5 966) ( 15 876)

Employee benefits ( 48 032) ( 23 550) ( 77 420) ( 149 002)

Other liabilities ( 3 070) ( 2 871) ( 5 141) ( 11 082)

Total Liabilities ( 55 382) ( 32 051) ( 88 527) ( 175 960)

Net Assets Transferred ( 214 683) ( 62 268) ( 185 638) ( 462 589)

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

The transfer of assets, liabilities and staff took place on 1 July 2012. These are detailed in the Statement of Changes in Equity under the heading Administrative restructure, and are detaile in the folowing Balance Sheet.


2.9 Income from Transactions

(a) Revenue from Government

(b) Grants

(c) Sales of Goods and Services

(d) Interest

(e) Contributions Received

Income is recognised in the Statement of Comprehensive Income when an increase in future economic benefits related

to an increase in an asset or a decrease of a liability has arisen that can be measured reliably.

Appropriations, whether recurrent or capital, are recognised as revenues in the period in which the Department gains

control of the appropriated funds. Except for any amounts identified as carried forward in Notes 8.1 and 18.3, control

arises in the period of appropriation.

Grants payable by the Australian Government are recognised as revenue when the Department gains control of the

underlying assets. Where grants are reciprocal, revenue is recognised as performance occurs under the grant.

Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be

reciprocal or non-reciprocal depending on the terms of the grant.

Amounts earned in exchange for the provision of goods are recognised when the significant risks and rewards of

ownership have been transferred to the buyer. Revenue from the provision of services is recognised in proportion to

the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to

surveys of work performed.

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

Services received free of charge by the Department, 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

Department obtains control of the asset, it is probable that future economic benefits comprising the contribution will

flow to the Department 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.


(f) Other Revenue

(g) Activity Based Funding and Block Funding

Block Funding refers to funding provided to support:

· Public hospital functions other than patient services and

· Public patient services provided by facilities that are not appropriately funded through ABF.

Block Funding provided to the THOs by the Department is made via the State Managed Fund.

2.10 Expenses from Transactions

(a) Employee Benefits

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.

Activity Based Funding refers to a system for funding public hospital services provided to individual patients using

national classifications, cost weights and nationally efficient prices developed by the Independent Hospital Pricing

Authority.

Block Funding provided to the THOs includes funding for Teaching Training and Research, Mental Health, Oral Health,

rural hospitals and community health centres.

Under National Health Reform, Activity Based Funding from the Australian Government and the Department is

provided directly to the THOs via the Tasmanian state pool account (Reserve Bank of Australia account established in

2012-2013), which is part of the National Health Funding Pool.

Block Funding is provided by the Australian Government through the state pool account, but is provided to the THOs

via the State Managed Fund, which is an account established by the State for the purposes of health funding under the

National Health Reform Agreement.

When a resident of one state receives hospital treatment in another state, the resident state compensates the treating

or provider state for the cost of that care via a cross border payment. Current year cross border payments are made

on behalf of the THOs through the state pool account by the Department, with the associated revenue and expenditure

being recognised in the THOs' accounts.

Expenses are recognised in the Statement of Comprehensive Income when a decrease in future economic benefits

related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably.

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

Vehicles 5 years

Plant and equipment

Medical equipment

Buildings

Software

Long Term Community Housing Program grant 11 years

(c) Grants and Subsidies

·

·

(d) Finance Costs

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:

2 to 20 years

4 to 20 years

40 to 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.

The construction and redevelopments of buildings is undertaken by the Department of Health and Human Services for

the THOs. When commissioned the buildings are transferred to the THO. This transfer is treated as a Capital Grant to

the THO.

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

Finance costs are interest on short term and long term borrowings.

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 Department.

Major amortisation periods are:

Grant and subsidies expenditure is recognised to the extent that:

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

the grant eligibility criteria have been satisfied.

A liability is recorded when the Department 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.

3 to 5 years


(e) Contributions Provided

(f) Other Expenses

2.11 Other Economic Flows included in Net Result

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

(b) Impairment – Financial Assets

(c) Impairment – Non-financial Assets

Contributions provided free of charge by the Department, to another entity, are recognised as an expense when fair

value can be reliably determined. No contributions were provided free of charge during 2012-2013.

Other expenses are recognised when a decrease in future economic benefits related to a decrease in an asset or an

increase of a liability has arisen that can be reliably measured.

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

transactions.

Impairment losses are recognised in the Statement of Comprehensive Income.

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

Financial assets are assessed at each reporting date to determine whether there is any objective evidence that there are

any financial assets that are impaired. A financial asset is considered to be impaired if objective evidence indicates that

one or more events have had a negative affect on the estimated future cash flows of that asset.

An impairment loss, in respect of a financial asset measured at amortised cost, is calculated as the difference between its

carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest

rate. 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.

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 Department’s assets are not used for the purpose of generating cash flows; therefore

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


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

2.12 Assets

(a) Cash and Deposits

(b) Receivables

(c) Loan Advances

(d) Equity Investments

(e) Other Financial Assets

In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any

indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in

the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extend that the

asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or

amortisation, if no impairment loss had been recognised.

Other gains/(losses) from other economic flows includes gains or losses from reclassifications of amounts from reserves

and/or accumulated surplus to net result, and from the revaluation of the present values of the long service leave liability

due to changes in the bond interest rate.

Assets are recognised in the Statement of Financial Position when it is probable that the future economic benefits will

flow to the Department and the asset has a cost or value that can be measured reliably.

Cash means notes, coins, any deposits held at call with a bank or financial institution, as well as funds held in the Special

Deposits and Trust Fund, being short term of three months or less and highly liquid. Deposits are recognised at

amortised cost, being their face value.

Receivables are recognised at amortised cost, less any impairment losses, however, due to the short settlement period,

receivables are not discounted back to their present value.

Loan advances are borrowings provided to clients for the purchase of homes and are recognised at the balance of the

outstanding principal less any impairment losses.

Equity investments are recorded at fair value with any changes in the fair value being recorded as income or expenses in

the Statement of Comprehensive Income. Equity investments are not depreciated.

Other financial assets are recorded at fair value.


(f) Inventories

(g) Assets Held for Sale

(h) Property, Plant, Equipment and Infrastructure

Land, buildings, artwork 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 Department and its costs

can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of day-to-day servicing of

property, plant and equipment are recognised in the Statement of Comprehensive Income as incurred.

(iii) Asset recognition threshold

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.

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 Department’s accounting

policies. Thereafter the assets (or disposal group) are measured at the lower of carrying amount and fair value less costs

to sell.

(i) Valuation basis

The asset capitalisation threshold for tangible assets adopted by the Department 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).


(i) Intangibles

·

·

(j) Other Assets

Other assets are recorded at fair value and include prepayments.

2.13 Liabilities

(a) Payables

the cost of the asset can be reliably measured.

Intangible assets held by the Department are valued at fair value less any subsequent accumulated amortisation and any

subsequent accumulated impairment losses where an active market exists. Where no active market exists, Intangible

assets held by the Department 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 Department is

$50 000.

Liabilities are recognised in the Statement of Financial Position when it is probable that an outflow of resources

embodying economic benefits will result from the settlement of a present obligation and the amount at which the

settlement will take place can be measured reliably.

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 Department becomes obliged to make future

payments as a result of a purchase of assets or services.

(iv) Revaluations

The Department’s land and building assets (excluding Housing Tasmania’s rental properties) were revalued by an

independent valuer. A full revaluation of land at fair value, and buildings at replacement depreciated cost on net basis is

undertaken every five years. In the intervening years the values are adjusted by an indice supplied by the valuer. Land

acquired and building commissioned in their first year are not revalued. They are revalued in subsequest years.

Housing Tasmania land and building assets are revalued annually as at 31 October 2012 using a mix of onsite

revaluations and suburb based indices adjustments. These annual revaluations are provided by the Valuer-General of

Tasmania.

An intangible asset is recognised where:

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


(b) Interest Bearing Liabilities

(c) Provisions

(d) Employee Benefits

(e) Superannuation

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 relevant period. The effective interest rate is the rate that exactly discounts estimated future

cash payments through the expected life of the financial liability, or where appropriate, a shorter period.

A provision arises if, as a result of a past event, the Department has a present legal or constructive obligation that can

be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions are determined by discounting the expected future cash flows at a rate that reflects current market

assessments of the time value of money and the risks specific to the liability. Any right to reimbursement relating to

some or all of the provision is recognised as an asset when it is virtually certain that the reimbursement will be received.

Liabilities for wages and salaries and annual leave are recognised when an employee becomes entitled to receive a

benefit. Those liabilities expected to be realised within 12 months are measured at the amount expected to be paid.

Other employee entitlements are measured as the present value of the benefit at 30 June 2013, where the impact of

discounting is material, and at the amount expected to be paid if discounting is not material.

A liability for long service leave is recognised, and is measured as the present value of expected future payments to be

made in respect of services provided by employees up to the reporting date.

(i) Defined contribution plans

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.


(f) Other Liabilities

2.14 Leases

A defined benefit plan is a post‑employment benefit plan other than a defined contribution plan.

The Department makes contributions in respect of certain employees of Ambulance Tasmania to the Tasmanian

Ambulance Service Superannuation Scheme being a defined benefit scheme where members receive lump sum benefits

on resignation, retirement, death or invalidity. The scheme is closed to new members. The Department’s

superannuation obligations in respect of this scheme are recognised at the latest actuarial assessment of the member’s

entitlements, net of scheme assets. Actuarial gains and losses in respect of this scheme are recognised in the Statement

of Comprehensive Income.With the exception noted below, the Department does not recognise a liability for the accruing superannuation benefits

of Service employees. This liability is held centrally and is recognised within the Finance‑General Division of the

Department of Treasury and Finance.

The Director of Housing’s superannuation obligations, in respect of the contributory service of current and past

government employees, are recognised at the latest actuarial assessment of the members’ entitlements, net of scheme

assets. The valuation is determined by discounting to present value, the gross benefit payments at a current, market-

determined, risk-adjusted discount rate appropriate to the respective plan.

Actuarial gains or losses arising from the actuarial revaluation of superannuation liabilities are recognised in the

Statement of Comprehensive Income.

Other liabilities and Other financial liabilities are recognised in the Statement of Financial Position when it is probable

that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and

the amount at which the settlement will take place can be measured reliably. Other liabilities include revenue received

in advance and on costs associated with employee benefits. Revenue received in advance is measured at amortised cost.

On-costs associated with Employee benefits expected to be realised within 12 months are measured at the amount

expected to be paid. Other On-costs associated with employee benefits are measured at the present value of the cost

at 30 June 2013, where the impact of discounting is material, and at the amount expected to be paid if discounting is not

material.

(ii) Defined benefit plans

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


2.15 Judgements and Assumptions

2.16 Foreign Currency

2.17 Comparative Figures

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 at

Note 2.5.

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

Restructures of Outputs within the Department (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.

The comparative statements have not been restated for the Administrative restructure detailed in Note 2.8.

In the application of Australian Accounting Standards, the Department 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 Department that have significant effects on the Financial Statements are disclosed in the

relevant notes to the Financial Statements. In particular, information about significant areas of estimation, uncertainty

and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in

the financial statements are described in the following notes:

• 2.10(b) Depreciation and amortisation

• 2.12(h) and 11.7(a) Property, plant and equipment

• 2.13(e) and 12.4 Superannuation

• impairment (refer Notes 2.12(b), 2.12(c), 11.7)

• provision for impairment (refer Note 2.14(c), 11.1))

• measurement of defined benefit obligations (refer Notes 2.14(e), 12.4)

• provisions and contingencies (refer Notes 2.13(c), 2.13(f), 12.3, 13.2) and

• key assumptions used in cash flow projections (refer Notes 2.13(a), 16).The Department has made no other judgements or assumptions that may cause a material adjustment to the carrying

amounts of assets and liabilities.


2.18 Budget Information

2.19 Rounding

2.20 Departmental Taxation

2.21 Goods and Services Tax

Budget information refers to original Budget estimates as reflected in the 2012-13 Budget Papers and is not subject to

audit.

All amounts in the Financial Statements have been rounded to the nearest thousand dollars, unless otherwise stated.

Where the result of expressing amounts to the nearest thousand dollars would result in an amount of zero, the financial

statement will contain a note expressing the amount to the nearest whole dollar.

The Department is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax. The

levying of Payroll Tax ceased on 1 October 2012.

Revenue, expenses and assets are recognised net of the amount of GST, except where the GST incurred is not

recoverable from the Australian Taxation Office. Receivables and payables are stated inclusive of GST. The net amount

recoverable, or payable, to the ATO is recognised as an asset or liability within the Statement of Financial Position.

In the Statement of Cash Flows, the GST component of cash flows arising from operating, investing or financing

activities which is recoverable from, or payable to, the Australian Taxation Office is, in accordance with the Australian

Accounting Standards, classified as operating cash flows.


Note 3 Departmental Output Schedules

3.1 Output Group Information

2013Budget

$'000

2013Actual

$'000

2012Actual

$'000


Revenue from appropriation 503 348 552 539 819 092

Grants 26 243 8 448 63 600


Interest 212 ( 32) 533

Contributions received 0 657 0

Other revenue 6 372 3 191 23 483

Total Revenue and Other Income from Transactions 546 755 571 238 996 272


Employee benefits

Salaries and wages 52 236 62 452 583 355

Other employee related expenses 1 044 1 113 12 184

Superannuation expenses 5 644 7 605 70 501

Depreciation and amortisation 2 847 4 325 26 557

Supplies and Consumables

Consultants 626 1 418 1 030

Maintenance and property services 5 565 4 010 27 499

Communications 923 1 060 4 925

Information technology 2 892 9 105 8 827

Travel and transport 2 712 2 715 10 178

Output Group 1 – Acute Health Services

Comparative information has not been restated for external administrative restructures.

Budget information refers to original Budget estimates reflected in the 2012-2013 Budget Papers which has not been

subject to audit.


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Medical, surgical and pharmacy supplies 7 782 2 067 162 034

Advertising and promotion 32 20 118

Other supplies and consumables 2 452 9 372 49 797

Grants and subsidies 460 823 455 470 2 995

Finance costs 0 0 2

Other expenses 4 177 3 398 43 995

Total Expenses from Transactions 549 755 564 130 1 003 997

Net Result from Transactions (Net Operating Balance) ( 3 000) 7 108 ( 7 725)


Net gain/(loss) on non-financial assets ( 1) 27 47

Net actuarial gains/(losses) of superannuation defined benefit plans 0 5 842 ( 8 902)

Net gain/(loss) on financial instruments and statutory receivables/payables 0 29 ( 1 137)

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

Total Other Economic Flows included in Net Result ( 1) 5 898 ( 9 992)

Net Result from Continuing Operations ( 3 001) 13 006 ( 17 717)

Other Eeconomic Flows - Other Non-Owner Changes in Equity

Changes in asset revaluation reserve ( 60 917) 6 418 13 056

Total other Economic Flows - Other Non-Owner Changes in Equity ( 60 917) 6 418 13 056

Comprehensive Result ( 63 918) 19 424 ( 4 661)

Expense by Output

1.1 Admitted Services 419 985 435 193 879 065

1.2 Non-admitted Services 33 628 38 283 36 205

1.3 Emergency Department Services 35 550 30 265 26 665

1.4 Ambulance Services 58 241 60 059 59 651

1.5 Forensic Medicine Services 2 351 330 2 411

Total 549 755 564 130 1 003 997


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Net Assets

Total assets deployed for Acute Health Services 85 467 690 499

Total liabilities incurred for Acute Health Services ( 45 763) ( 202 746)

Net Assets Deployed for Acute Health Services 39 704 487 753


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000


Revenue and other Income from Transactions


Grants 12 291 41 261 0


Interest 6 3 0


Other revenue 931 2 290 5 411



Employee benefits


Other employee related expenses 1 863 2 026 3 665




Consultants 494 449 615


Communications 1 199 1 142 2 282

Information technology 2 225 4 119 3 902


Medical, surgical and pharmacy supplies 14 759 9 545 16 876




Output Group 2 – Community Health Services


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Other expenses 11 402 4 113 17 757

Total Expenses from Transactions 353 895 254 468 399 735

Net Rresult from Transactions (Net Operating Balance) ( 1 098) 4 071 ( 1 266)


Net gain/(loss) on non-financial assets 0 ( 230) ( 2 376)

Net gain/(loss) on financial instruments and statutory receivables/payables 0 36 ( 121)

Total Other Eeconomic Flows included in Net Rresult 0 ( 194) ( 2 497)

Net Result from Continuing Pperations ( 1 098) 3 877 ( 3 763)

Other Economic Fflows - Other Non-Owner Changes in Equity

Changes in asset revaluation reserve 514 ( 4 437) 3 568

Total Other Economic Flows - Other Non-Owner Changes in Equity 514 ( 4 437) 3 568

Comprehensive Result ( 584) ( 560) ( 195)

Expense by Output

2.1 Community and Aged Care Services 137 800 67 510 191 378

2.2 Oral Health Services 26 833 5 667 27 555

2.3 Population Health Services 38 629 35 711 36 820

2.4 Mental Health Services 150 633 145 580 143 982

Total 353 895 254 468 399 735

Net Assets

Total assets deployed for Community Health Services 55 392 244 559

Total liabilities incurred for Community Health Services ( 33 971) ( 67 073)

Net Assets Deployed for Community Health Services 21 421 177 486


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000




Revenue from Special Capital Investment Funds 0 0 0

Grants 0 5 753 0


Interest 506 362 237


Other revenue ( 2 465) 2 843 384



Employee benefits


Other employee related expenses 371 342 323






Communications 835 720 671

Information technology 767 2 284 1 364

Travel and transport 1 045 603 748

Medical, surgical and pharmacy supplies 135 174 47




Finance costs 9 326 9 326 9 624

Output Group 3 – Human Services


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Other expenses 2 638 1 568 3 470


Net Result from Transactions (Net Operating Balance) ( 21 283) ( 72 102) ( 73 418)


Net gain/(loss) on non-financial assets ( 15 415) ( 16 103) ( 16 726)

Net actuarial gains/(losses) of superannuation defined benefit plans 0 2 421 ( 5 019)

Net gain/(loss) on financial instruments and statutory receivables/payables 0 ( 1 269) ( 807)

Other gains/(losses) from other economic flows 0 1 930 1 134

Total Other Economic Fflows included in Net Result ( 15 415) ( 13 021) ( 21 418)

Net Result from Continuing Operations ( 36 698) ( 85 123) ( 94 836)

Other Economic Flows - Other Non-Owner Changes in Equity

Changes in asset revaluation reserve 21 685 33 118 ( 4 102)

Total Other Economic Flows - Other Non-Owner Changes in Equity 21 685 33 118 ( 4 102)

Comprehensive Result ( 15 013) ( 52 005) ( 98 938)

Expense by Output

3.1 Community Services 22 810 18 986 27 984

3.2 Disability Services 175 762 176 494 173 375

3.3 Housing Services 161 400 214 901 201 644

Total 359 972 410 381 403 003

Net Assets

Total assets deployed for Human Services 1 891 823 2 114 618

Total liabilities incurred for Human Services ( 241 112) ( 247 230)

Net Assets Deployed for Human Services 1 650 711 1 867 388


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000




Grants 0 1 212 0

Sales of goods and services 2 583 2 449 271

Interest 1 1 0


Other revenue 388 1 004 1 298

Total Rrevenue and Other Income from Transactions 93 928 103 794 85 814


Employee benefits




Depreciation and amortisation 652 597 593





Information technology 1 249 921 521





Output Group 4 – Children Services


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000


Other expenses 4 795 1 909 3 571


Net Result from Transactions (Net Operating Balance) ( 1 796) 812 31

Other Economic Flows Included in Net Result

Net gain/(loss) on financial instruments and statutory receivables/payables 0 2 ( 3)

Total Other Economic Flows Iincluded in Net Result 0 2 ( 3)

Net Result from Continuing Operations ( 1 796) 814 28


Changes in asset revaluation reserve 250 ( 656) 739

Total Other Economic Flows - Other Non-Owner Changes in Equity 250 ( 656) 739

Comprehensive Rresult ( 1 546) 158 767

Expense by Output

4.1 Children Services 95 724 102 982 85 783

Total 95 724 102 982 85 783

Net Assets

Total assets deployed for Children Services 20 546 14 640

Total liabilities incurred for Children Services ( 12 863) ( 12 835)

Net Assets Deployed for Children Services 7 683 1 805


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000



Revenue from appropriation 753 845 802

Grants 0 6 0

Sales of goods and services 3 25 15

Other revenue 1 1 0

Total Revenue and Other Income from Transactions 757 877 817


Employee benefits

Salaries and wages 526 634 491


Superannuation expenses 57 76 60



Consultants 2 22 30

Maintenance and property services 60 73 64


Information technology 6 7 6

Travel and transport 30 23 23



Other supplies and consumables 25 38 71

Output Group 5 – Independent Children’s Review


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Grants and subsidies 5 7 0

Other expenses 39 15 37

Total Eexpenses From Transactions 766 936 803

Net Result from Transactions (Net Operating Balance) ( 9) ( 59) 14

Net Result From Continuing Operations ( 9) ( 59) 14




Comprehensive Result ( 9) ( 95) 14

Expense by Output

5.1 Office of the Commissioner for Children 766 936 803

Total 766 936 803

Net Assets

Total assets deployed for Independent Children's Review 24 41

Total liabilities incurred for Independent Children's Review ( 169) ( 120)

Net Assets Deployed for Independent Children's Review ( 145) ( 79)


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000




Grants 97 072 26 496 0

Sales of goods and services 3 725 331 30

Other revenue 1 200 2 303 8 975



Employee benefits

Salaries and wages 0 2 009 568





Maintenance and property services 0 152 486


Information technology 0 573 171




Other supplies and consumables 0 1 795 1 685


Other expenses 1 883 44 51


Net Result from Transactions (Net Operating Balance) 102 042 ( 11 238) 71 689

Output Group – Capital Investment Program


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Other Economic Flows Included in Net Result

Net gain/(loss) on non-financial assets 20 768 8 594 12 277

Other gains/(losses) from other economic flows 0 ( 1 341) ( 1 833)

Total Other Economic Flows Included in Net Result 20 768 7 253 10 444

Net Result from Continuing Operations 122 810 ( 3 985) 82 133

Comprehensive Rresult 122 810 ( 3 985) 82 133

Expense by Output

Capital Investment Program 7 883 56 392 5 123

Total 7 883 56 392 5 123

Net Assets

Total assets deployed for Capital Investment Program 224 177 0

Total liabilities incurred for Capital Investment Program 2 033 0

Net Assets Deployed for Capital Investment Program 226 210 0


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000



Revenue from Special Capital Investment Funds 78 224 38 857 62 927

Sales of goods and services 0 212 62



Employee benefits


Other employee related expenses 0 7 ( 133)







Information technology 0 297 3 183




Other supplies and consumables 0 1 171 1 056

Output Group – Special Capital Investment Funds


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000


Other expenses 0 32 175


Net Result from Transactions (Net Operating Balance) 62 761 13 573 50 784


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

Total Other Economic Flows included in Net Result 0 0 ( 5)

Net Result from Continuing Operations 62 761 13 573 50 779




Comprehensive Result 62 761 13 562 50 779

Expense by Output

Special Capital Investment Funds 15 463 25 496 12 208

Total 15 463 25 496 12 208

Net Assets

Total assets deployed for Special Capital Investment Funds 104 249 0

Total liabilities incurred for Special Capital Investment Funds ( 1 571) 0

Net Assets Deployed for Special Capital Investment Funds 102 678 0


2013Budget

$'000

2013Actual

$'000

2012Actual

$'000

Total Comprehensive Result of Output Groups

Acute Health Services ( 63 918) 19 424 ( 4 661)

Community Health Services ( 584) ( 560) ( 195)

Human Services ( 15 013) ( 52 005) ( 98 938)

Children Services ( 1 546) 158 767

Independent Children’s Review ( 9) ( 95) 14

Capital Investment Program 122 810 ( 3 985) 82 133

Special Capital Investment Funds 62 761 13 562 50 779

Total Comprehensive Result 104 501 ( 23 501) 29 899

Comprehensive Result 104 501 ( 23 501) 29 899

2013Actual

$'000

2012Actual

$'000

Total Net Assets Deployed for Output Groups

Acute Health Services 39 704 487 753

Community Health Services 21 421 177 486

Human Services 1 650 711 1 867 388

Children Services 7 683 1 805

Independent Children’s Review ( 145) ( 79)

Capital Investment Program 226 210 0

Special Capital Investment Funds 102 678 0

Total Net Assets Deployed 2 048 262 2 534 353

Net Assets 2 048 263 2 534 353

3.2 Reconciliation of Total Output Group

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