Department of health and ageing annual report 2002-03
PART 4 FINANCIAL STATEMENTS 2002-03 FINANCIAL PERFORMANCE
Download 1.71 Mb.
|
- Navigate this page:
- Budget Estimates Framework Review (BEFR)
- Pan Pharmaceuticals Recall
- Total departmental revenue increased by 31 per cent
- Total expenses increased by 31 per cent for 2002-03
- Assets and Liabilities— Departmental
- Total departmental assets increased over 2002-03 by 47 per cent
- Total departmental liabilities increased by 27 per cent
- There were a number of significant issues over 2002-03 that impacted upon the financial statements
- Revenues Administered on Behalf of Government decreased by $419.7 million
- Total administered expenses increased by $2,200.8 million
- Assets and Liabilities— Administered
PART 4 FINANCIAL STATEMENTS2002-03 FINANCIAL PERFORMANCEOperating Result—DepartmentalThe Department recorded a consolidated operating surplus for 2002-03 The Department of Health and Ageing achieved a consolidated 2002-03 operating surplus of $0.3 million. The operating result was primarily driven by: a CRS Australia (CRS) surplus of $5.7 million, which resulted from an increased focus and increased productivity in delivering the Department of Family and Community Services (FaCS) outcome milestones under the FaCS Service Level Agreement; a $2.7 million write-off of internally developed software no longer in use within the Department; and a Therapeutic Goods Administration (TGA) deficit of $2.8 million arising primarily from the costs associated with the Pan Pharmaceuticals Ltd product recall. A five year summary of the consolidated departmental operating result is shown below:
Agency TransfersThere have been a number of agency transfers during 2002-03 CRS and the National Industrial Chemical Notification and Assessment Scheme (NICNAS) transferred to the Department on 1 July and 3 July 2002 respectively. Budget Estimates Framework Review (BEFR)As part of the implementation of the recommendations arising from the Department of Finance and Administration BEFR, the following Australian Government financial management framework changes have impacted on the 2002-03 financial statements: cessation of the agency banking incentive scheme (under which agencies previously earned interest on cash balances held in bank accounts); and return of cash in excess of agreed working capital balances by budget funded Financial Management and Accountability (FMA) agencies to the Official Public Account.
additional costs incurred by TGA in relation to the recall required the recognition of a $14.6 million receivable in 2002-03 for the additional funding/revenue that has been approved by the Prime Minister and Senior Ministers. This funding will be drawn down in 2003-04; and a $13.7 million departmental loan to TGA to assist with funding for the recall has been eliminated in the accounting for the consolidation of TGA’s financial statements into the Department.
an appropriation revenue increase of 11 per cent or $80.2 million to $787.7 million (2001-02: $707.5 million); and an increase in revenues other than appropriations of $157.5 million, of this amount $146.0 million is related to CRS revenue. Revenues from Government includes $407.3 million paid to the Health Insurance Commission (HIC) for service delivery (2001-02: $368.8 million). Total expenses increased by 31 per cent for 2002-03Operating expenses increased by $240.6 million during 2002-03 to $1,009.5 million (2001-02: $768.9 million). This increase is largely attributable to: employee expense increases of $107.4 million. This increase includes $88.4 million of CRS employee expenses and $3.0 million of NICNAS employee expenses; and supplier expenses increases of $117.0 million. This increase includes $49.0 million of CRS supplier expenses and $39.1 million in additional HIC service delivery related expenses.
Net asset position continues to improveThe consolidated Departmental net asset position at 30 June 2003 is $35.9 million. The improvement in Department’s net asset position over the financial year is, in the main, related to CRS net assets of $33.9 million. Total departmental assets increased over 2002-03 by 47 per centTotal assets increased by $64.4 million to $202.7 million. CRS total assets represent $63.2 million of this increase. During the 2002-03 financial year cash at bank decreased by $25.9 million to a balance of $35.0 million. This reduction is due to the return of cash to the Official Public Account under the BEFR reforms. This cash is available for use by the Department and is recorded as a receivable in the financial statements. Total departmental liabilities increased by 27 per centTotal liabilities have increased by $35.5 million to $166.9 million. Again, this increase is primarily due to the reporting of the CRS liabilities of $29.3 million. Major liabilities at 30 June 2003 are: Employee provisions of $97.7 million; and Suppliers provisions of $45.0 million. Administered ItemsThere were a number of significant issues over 2002-03 that impacted upon the financial statementsDuring 2002-03 the Department of Health and Ageing assumed responsibility for the financial reporting of the Incurred But Not Reported (IBNR) Scheme, and this has been reflected in the financial statements. Significant items disclosed in the 2002-03 financial statements relating to the IBNR Scheme include: An initial grant liability of $500.8 million was recorded as at 30 June 2002. This amount represented the initial estimate of the Commonwealth’s liability for claims incurred but not reported under the Deed of Indemnity provided to United Medical Protection Limited and Australasian Medical Insurance Limited (UMP/AMIL); and The reassessed IBNR value was $498.5 million. In accordance with the accounting policy agreed between the Department and ANAO, the reduction in the Commonwealth’s liability of $2.256 million was recorded as a revenue transaction. The Australian Government Actuary reassessed the IBNR liability to determine a value as at 30 June 2003. During the financial year, legislation was passed to establish the National Blood Authority (NBA) on 1 July 2003. The funding for the functions previously performed by the Department will be appropriated to the NBA in 2003-04. The establishment of the NBA is disclosed at Note 2 to the financial statements under the title ‘Events Occurring after Balance Date’.
More details of the IBNR scheme are disclosed in the 2002-03 financial statements. Administered ExpensesTotal administered expenses increased by $2,200.8 millionFor the 2002-03 reporting period: Personal Benefits expense increased by 6.7 per cent to $15.616 billion, ($14.567 billion 2001-02), which was in line with budget estimates as disclosed in the 2003-04 Portfolio Budget Statements (PBS); Grants expense increased by 10 per cent to $10.584 billion, ($9.624 billion 2001-02) which was slightly lower than the 12.5 per cent growth rate anticipated in the 2003-04 PBS, resulting in a $247.0 million underspend; and Subsidy expense increased by 5 per cent to $4.006 billion, ($3.813 billion in 2001-02), which was slightly higher than the 3.5 per cent anticipated in the 2002-03 estimate as disclosed in the 2003-04 PBS. Assets and Liabilities— AdministeredTotal administered assets increased by $136.3 millionThe relatively high administered cash balance reported as at 30 June 2003 of $148.6 million is due to funds being drawn down in late June for payment in July 2003. Total administered liabilities increased by $637.1 millionAs noted previously, during 2002-03 the Department of Health and Ageing assumed responsibility for the financial reporting of aspects of the medical indemnity initiatives. The reported Grant liability balance includes an amount of $498.5 million which represents the updated estimate of the Commonwealth’s liability of IBNR claims for UMP/AMIL. Directory: sites -> default -> files files -> Answer True False 2 points Question 2 files -> Northern England’s set-jetting locations files -> Nstructions for Acquiring Excess Equipment online, through the 1033 Program files -> Occupational health and safety files -> The Black Panther Party’s Ten Point Program files -> International programs roel profile files -> Fermi Questions a guide for Teachers, Students, and Event Supervisors Lloyd Abrams, Ph. D. DuPont Company, cr&D/ccas experimental Station Wilmington, de 19880 files -> Personal Information Name: Maha Al-Ammari Nationality: Saudi Relationship Status Download 1.71 Mb. Share with your friends:
|