C.2 - Financial Statements

Independent Audit Report

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Health - Audit Report - 2015 - accessible version

Health - Audit Report - 2015 - accessible version

Statement of Responsibility

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Statement by the Chief Finance Officer

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Health Directorate Operating Statement for the Year Ended 30 June 2015

  Note
No.
Actual
2015
$’000
Original
Budget
$’000
Actual
2014
$’000
Income        
Revenue        
Government Payment for Outputs 4 252,617 257,615 229,062
User Charges – ACT Government 5 760,594 757,356 718,016
User Charges – Non-ACT Government 5 109,014 105,806 107,377
Interest 6 70 100 97
Distribution from Investments with the Territory Banking Account 7 97 178 98
Resources Received Free of Charge 8 1,471 792 1,618
Other Revenue 9 19,760 20,967 20,628
Total Revenue   1,143,623 1,142,814 1,076,896
         
Gains        
Gains on Investments 10 12 - 4
Other Gains 11 7,068 1,574 1,394
Total Gains   7,080 1,574 1,398
Total Income   1,150,703 1,144,388 1,078,294
         
Expenses        
Employee Expenses 12 643,111 635,448 606,380
Superannuation Expenses 13 81,043 79,614 76,443
Supplies and Services 14 323,871 319,790 310,676
Depreciation and Amortisation 15 46,586 38,395 32,483
Grants and Purchased Services 16 78,343 92,810 72,677
Borrowing Costs 17 305 401 551
Cost of Goods Sold 18 9,295 10,934 10,339
Other Expenses 19 12,779 11,357 6,390
Total Expenses   1,195,333 1,188,749 1,115,939
         
Operating (Deficit)   (44,630) (44,361) (37,645)
         
Other Comprehensive Income        
Items that will not be reclassified subsequently to profit or loss        
(Decrease) in Asset Revaluation Surplus 37 (90) - (14,489)
Total Comprehensive (Deficit)   (44,720) (44,361) (52,134)

The above Operating Statement should be read in conjunction with the accompanying notes. The Directorate has only one output class and as such the above Operating Statement is also the Directorate's Operating Statement for the Health and Community Care Output Class. A separate disaggregated disclosure note has therefore not been included in these Financial Statements.

Health Directorate Balance Sheet as at 30 June 2015

  Note
No.
Actual
2015
$’000
Original
Budget
2015
$’000
Actual
2014$’000
Current Assets        
Cash and Cash Equivalents 23 105,069 42,075 107,256
Investments   - 3,011 -
Receivables 24 27,232 73,236 23,458
Inventories 25 8,655 8,513 7,806
Assets Held for Sale 26 - 34 29
Other Assets 31 3,939 4,172 3,391
Total Current Assets   144,895 131,041 141,940
         
Non-Current Assets        
Receivables 24 - 200 -
Investments 27 3,027 - 3,015
Property, Plant and Equipment 28 886,129 1,015,328 859,100
Intangible Assets 29 22,583 30,411 6,933
Capital Works in Progress 30 131,756 130,259 147,783
Total Non-Current Assets   1,043,495 1,176,198 1,016,831
Total Assets   1,188,390 1,307,239 1,158,771
         
Current Liabilities        
Payables 32 54,269 88,172 42,647
Finance Leases 33 - 2,515 2,156
Employee Benefits 34 229,506 187,149 208,007
Other Liabilities 36 370 2,624 523
Total Current Liabilities   284,145 280,460 253,333
         
Non-Current Liabilities        
Finance Leases 33 - 4,362 4,042
Employee Benefits 34 14,529 15,692 14,044
Other 35 1,418 1,503 1,375
Total Non-Current Liabilities   15,947 21,557 19,461
Total Liabilities   300,092 302,017 272,794
         
Net Assets   888,298 1,005,222 885,977
         
Equity        
Accumulated Funds   758,870 861,215 756,459
Asset Revaluation Surplus 37 129,428 144,007 129,518
Total Equity   888,298 1,005,222 885,977

The above Balance Sheet should be read in conjunction with the accompanying notes.  The Directorate has only one output class and as such the above Balance Sheet is also the Directorate's Balance Sheet for the Health and Community Care Output Class. A separate disaggregated disclosure note has therefore not been included in these Financial Statements.  

Health Directorate Statement of Changes in Equity for the Year Ended 30 June 2015

  Note
No.
Accumulated
Funds
Actual
2015

$’000
Asset
Revaluation
Surplus
Actual
2015

$’000
Total
Equity
Actual
2015

$’000
Original
​Budget
2015

$’000
           
Balance at 1 July 2014   756,459 129,518 885,977 917,332
Comprehensive Income          
Operating (Deficit)   (44,630) - (44,630) (44,361)
(Decrease) in the Asset Revaluation Surplus 37 - (90) (90) -
Total Comprehensive (Deficit)   (44,630) (90) (44,720) (44,361)
           
Transactions Involving Owners Affecting Accumulated Funds          
Capital Injections   74,041 - 74,041 132,251
Capital (Distributions)   (27,000) - (27,000) -
Total Transactions Involving Owners Affecting Accumulated Funds   47,041 - 47,041 132,251
           
Balance at 30 June 2015   758,870 129,428 888,298 1,005,222

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

  Note
No.
Accumulated
Funds
Actual
2014
$’000
Asset
Revaluation
Surplus
Actual
2014
$’000
Total
Equity
Actual
2014
$’000
Original
Budget
2014
$’000
Balance at 1 July 2013   675,962 144,007 819,969 836,266
           
Comprehensive Income          
Operating (Deficit)   (37,645) - (37,645) (37,919)
(Decrease) in the Asset Revaluation Surplus 37 - (14,489) (14,489)  
Total Comprehensive (Deficit)   (37,645) (14,489) (52,134) (37,919)
           
Transactions Involving Owners Affecting Accumulated Funds
Capital Injections   118,142 - 118,142 190,408
Total Transactions Involving Owners Affecting Accumulated Funds   118,142 - 118,142 190,408
           
Balance at 30 June 2014   756,459 129,518 885,977 988,755

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

Health Directorate Cash Flow Statement for the Year Ended 30 June 2015

  Note
No.
Actual
2015
$’000
Original
Budget
2015
$’000
Actual
2014
$’000
Cash Flows from Operating Activities        
Receipts        
Government Payment for Outputs   252,617 257,615 229,062
User Charges – ACT Government   760,881 755,973 778,083
User Charges – Non-ACT Government   105,233 106,947 148,228
Grants Received from the Commonwealth   4,805 4,245 4,110
Interest Received   70 100 97
Distribution from Investments with the Territory    Banking Account   104 178 106
Goods and Services Tax Input Tax Credits    from the Australian Taxation Office   39,346 49,100 44,129
Goods and Services Tax Collected from Customers   4,590 4,300 6,164
Other   15,573 18,296 16,002
Total Receipts from Operating Activities   1,183,219 1,196,754 1,225,982
         
Payments        
Employee   621,323 637,897 575,760
Superannuation   80,761 81,675 75,847
Supplies and Services   318,270 320,619 321,786
Grants and Purchased Services   78,343 92,810 73,679
Goods and Services Tax Paid to Suppliers   43,826 54,400 50,321
Borrowing Costs   305 401 351
Other   13,237 21,432 20,082
Total Payments from Operating Activities   1,156,065 1,209,234 1,117,825
Net Cash Inflows/ (Outflows) from Operating Activities 42 27,154 (12,480) 108,157
         
Cash Flows from Investing Activities        
Receipts        
Proceeds from Sale of Property, Plant and Equipment   1,131 - 1,566
Total Receipts from Investing Activities   1,131 - 1,566
         
Payments        
Payments for Property, Plant and Equipment   8,915 8,809 38,948
Payments for Capital Works   66,894 132,251 88,893
Total Payment from Investing Activities   75,809 141,060 127,841
Net Cash (Outflows) from Investing Activities   (74,678) (141,060) (126,275)
  Note
No.
Actual
2015
$’000
Original
Budget
2015
$’000
Actual
2014
$’000
Cash Flows from Financing Activities        
Receipts        
Capital Injections   74,041 132,251 118,142
Total Receipts from Financing Activities   74,041 132,251 118,142
         
Payments        
Repayment of Finance Leases   1,703 1,452 2,330
Capital Distributions   27,000 - -
Total Payment from Financing Activities   28,703 1,452 2,330
Net Cash Inflows from Financing Activities   45,338 130,799 115,812
         
Net (Decrease)/ Increase in Cash and Cash Equivalents   (2,187) (22,741) 97,694
Cash and Cash Equivalents at the Beginning of the Reporting Period   107,256 64,816 9,562
Cash and Cash Equivalents at the End of the Reporting   Period 42 105,069 42,075 107,256

The above Cash Flow Statement should be read in conjunction with the accompanying notes. 

Health Directorate Controlled Statement of Appropriation for the Year Ended 30 June 2015

The above Controlled Statement of Appropriation should be read in conjunction with the accompanying notes.

Column Heading Explanations

The Original Budget column shows the amounts that appear in the Cash Flow Statement in the Budget Papers.  This amount also appears in the Cash Flow Statement.

The Total Appropriated column is inclusive of all appropriation variations occurring after the Original Budget.

The Appropriation Drawn is the total amount of appropriation received by the Directorate during the year.  This amount appears in the Cash Flow Statement.

Variances between ‘Original Budget’ and ‘Total Appropriated’

Government Payment for Outputs

The difference between the Original Budget and Total Appropriated is due to Enterprise Bargaining Agreement funding for pay rises ($2.924 million) and revised Commonwealth funding for the Breastscreen Australia ($0.521 million) and Essential Vaccines ($0.425 million) National Partnership Agreements offset by the transfer of the Public Health Protection and Regulation Function ($0.382 million) in December 2014 to the Chief Minister, Treasury and Economic Development Directorate.

Capital Injections

The difference between the Original Budget and Total Appropriated in 2014-15 is due to the transfer of appropriation ($15.452) million from 2013-14. The transfer ensures the balance of the appropriation for each capital project is available to complete the approved work.     

Variances between ‘Total Appropriated’ and ‘Appropriation Drawn’

Government Payment for Outputs

The difference between the Total Appropriated and Appropriation Drawn is mainly due to:

  • the deferral of funding to align revenue with the latest planned timing of delivery of services; and
  • a reduction in appropriation drawdown by the Directorate to offset additional funding received from the ACT Local Hospital Network Directorate associated with Commonwealth funding for the ‘Public Hospital System – Additional Funding National Partnership Agreement’ ($4.373 million).

Capital Injections

The difference between the Total Appropriated and Appropriation Drawn in 2014-15 is due to the deferral of capital works projects from 2014-15 to 2015-16 and 2016-17. The major deferrals from 2014-15 into future years are:

  • $10.2 million moved out of this financial year for the Calvary Car Park due to delays in excavation works as a result of large volumes of unexpected unsuitable material found on site;
  •  $9.6 million moved out of this financial year due to postponement of works on Hospital Road at the Canberra Hospital as a result of road closures associated with Building 15 demountable installation;
  • $8.0 million moved out of this financial year for the E-Health ICT project due to lengthy delays in contract negotiations in relation to the Electronic Medication Management and Clinical Records Information System Replacement Projects; and
  • $7.4 million moved out of this financial year from the clinical services redevelopment – phase 3 project due to delays with procurement of generators and a flow on effect of delays with other construction works.

Health Directorate Controlled Note Index for the Year Ended 30 June 2015

Note 1 Objectives of the Health Directorate
Note 2 Summary of Significant Accounting Policies
Note 3 Change in Accounting Policy and Accounting Estimates, and Correction of Prior Period Errors
Income Notes
Note 4 Government Payment for Outputs
Note 5 User Charges
Note 6 Interest
Note 7 Distribution from Investments with the Territory Banking Account
Note 8 Resources Received Free of Charge
Note 9 Other Revenue
Note 10 Gains on Investment
Note 11 Other Gains
Expense Notes
Note 12 Employee Expenses
Note 13 Superannuation Expenses
Note 14 Supplies and Services
Note 15 Depreciation and Amortisation
Note 16 Grants and Purchased Services
Note 17 Borrowing Costs
Note 18 Cost of Goods Sold
Note 19 Other Expenses
Note 20 Waivers, Impairment Losses and Write-Offs
Note 21 Auditor's Remuneration
Note 22 Act of Grace Payments
Asset Notes
Note 23 Cash and Cash Equivalents
Note 24 Receivables
Note 25 Inventories
Note 26 Assets Held for Sale
Note 27 Investments
Note 28 Property, Plant and Equipment
Note 29 Intangible Assets
Note 30 Capital Works in Progress
Note 31 Other Assets
Liability Notes
Note 32 Payables
Note 33 Finance Leases
Note 34 Employee Benefits
Note 35 Other Provisions
Note 36 Other Liabilities
Equity Note
Note 37 Equity
Other Notes
Note 38     Restructure of Administrative Arrangements
Note 39 Financial Instruments
Note 40 Commitments
Note 41 Contingent Liabilities and Contingent Assets
Note 42 Cash Flow Reconciliation
Note 43 Events Occurring after Balance Date
Note 44 Third Party Monies
Note 45 Budgetary Reporting

Health Directorate Territorial Financial Statements for the Year Ended 30 June 2015

Statement of Income and Expenses on Behalf of the Territory for the Year Ended 30 June 2015

  Note
No.
Actual
2015
$’000
Original
Budget
2015
$’000
Actual
2014
$’000
Income        
Revenue        
Payments for Expenses on Behalf of the Territory 47 6,684 7,619 4,615
Fees 48 1,268 1,275 1,136
Total Revenue   7,952 8,894 5,751
Total Income   7,952 8,894 5,751
         
Expenses        
Grants and Purchased Services 49 6,684 7,619 4,615
Transfer to Government 50 1,267 1,275 1,133
Total Expenses   7,951 8,894 5,748
         
Total Comprehensive Surplus   1 - 3

The above Statement of Income and Expenses on Behalf of the Territory should be read in conjunction with the accompanying notes. 

Statement of Assets and Liabilities on Behalf of the Territory for the Year Ended 30 June 2015

  Note
No.
Actual
2015
$’000
Original
Budget
2015
$’000
Actual
2014
$’000
Current Assets        
Cash and Cash Equivalents 51 242 295 268
Receivables 52 112 5 35
Total Current Assets   354 300 303
Total Assets   354 300 303
         
Non-Current Liabilities        
Advance from the Territory Banking Account 53 350 300 300
Total Liabilities   350 300 300
         
Net Assets   4 - 3
         
Equity        
Accumulated Funds   4 - 3
Total Equity   4 - 3

The above Statement of Assets and Liabilities on Behalf of the Territory should be read in conjunction with the accompanying notes.

Statement of Changes in Equity on Behalf of the Territory for the Year Ended 30 June 2015

  Accumulated
Funds
Actual
2015
$’000
Total
Equity
Actual
2015
$’000
Original
Budget
2015
$’000
Balance at 1 July 2014 3 3 -
Comprehensive Income      
Operating Surplus 1 1 -
Total Comprehensive Income 1 1 -
       
Balance at 30 June 2015 4 4 -

The above Statement of Changes in Equity on Behalf of the Territory should be read in conjunction with the accompanying notes.

  Accumulated
Funds
Actual
2014
$’000
Total
Equity
Actual
2014
$’000
Original
Budget
2014
$’000
Balance at 1 July 2013 - - -
Comprehensive Income      
Operating Surplus 3 3 -
Total Comprehensive Income 3 3 -
       
Balance at 30 June 2014 3 3 -

The above Statement of Changes in Equity on Behalf of the Territory should be read in conjunction with the accompanying notes.

Cash Flow Statement on Behalf of the Territory for the Year Ended 30 June 2015

  Note
No.
Actual
2015
$’000
Original
Budget
2015
$’000
Actual
2014
$’000
Cash Flows from Operating Activities        
Receipts        
Cash from the ACT Government for Expenses on    Behalf of the Territory   6,684 7,619 4,615
Fees   1,268 1,275 1,136
Other Receipts   704 763 467
Total Receipts from Operating Activities   8,656 9,657 6,218
         
Payments        
Grants and Purchased Services   6,635 7,619 4,615
Transfer of Territory Receipts to the ACT Government   1,267 1,275 1,133
Other   780 763 497
Total Payments from Operating Activities   8,682 9,657 6,245
Net Cash (Outflows) from Operating Activities 54 (26) - (27)
         
Net (Decrease) in Cash   (26) - (27)
Cash and Cash Equivalents at the Beginning of the    Reporting Period   268 295 295
Cash and Cash Equivalents at the End of the    Reporting Period 54 242 295 268

The above Cash Flow Statement on Behalf of the Territory should be read in conjunction with the accompanying notes. 

Territorial Statement of Appropriation for the Year Ended 30 June 2015

  Original
Budget
2015
$’000
Total
Appropriated
2015
$’000
Appropriation
Drawn
2015
$’000
Appropriation
Drawn
2014
$’000
Territorial        
Expenses on Behalf of the Territory 7,619 6,684 6,684 4,615
Total Territorial Appropriation 7,619 6,684 6,684 4,615

The above Territorial Statement of Appropriation should be read in conjunction with the accompanying notes.

Column Heading Explanations

The Original Budget column shows the amounts that appear in the Cash Flow Statement in the Budget Papers. This amount also appears in the Cash Flow Statement on Behalf of the Territory.

The Total Appropriated column is inclusive of all appropriation variations occurring after the Original Budget.

The Appropriation Drawn is the total amount of appropriation received by the Directorate during the year. This amount also appears in the Cash Flow Statement on Behalf of the Territory.

Variances between ‘Original Budget’ and ‘Total Appropriated’

The difference between the Original Budget and Total Appropriated is due to the transfer of appropriation from 2014-15 to 2015-16 relating to:

  • capital works for building works at Calvary Public Hospital for clinical services;
  • the electrical substation; and
  • savings returned from a prior year capital upgrade.

Health Directorate Territorial Note Index

Note

46

Summary of Significant Accounting Policies Territorial

Revenue Notes

 

Note

47

Payment for Expenses on behalf of the Territory Territorial

Note

48

Fees Territorial

Expenses Notes

 

Note

49

Grants and Purchased Services Territorial

Note

50

Transfer to Government Territorial

Assets Notes

 

Note

51

Cash and Cash Equivalents Territorial

Note

52

Receivables Territorial

Liabilities Note

 

Note

53

Advance from the Territory Banking Account Territorial

Other Notes

 

Note

54

Cash Flow Reconciliation Territorial

Note

55

Financial Instruments Territorial

Note

56

Commitments Territorial

Note

57

Contingent Liabilities and Contingent Assets Territorial

Note

58

Events Occurring after Balance Date Territorial

Note

59

Budgetary Reporting Territorial