Financial Statements
NATIONAL BLOOD AUTHORITY
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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EXPENSES | |||
Employee benefits | 3A | 6,490 | 6,776 |
Suppliers | 3B | 3,569 | 2,840 |
Depreciation and amortisation | 3C | 849 | 751 |
Finance costs | 3D | 3 | - |
Losses from asset sales | 3E | 38 | 13 |
Total expenses | 10,949 | 10,380 | |
LESS: OWN-SOURCE INCOME |
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Own-source revenue | |||
Sale of goods and rendering of services | 4A | 102 | 232 |
Other revenue | 4B | 3,910 | 3,704 |
Total own-source revenue | 4,012 | 3,936 | |
Gains | |||
Other gains | 4C | 94 | 94 |
Total gains | 94 | 94 | |
Total own-source income | 4,106 | 4,030 | |
Net cost of services | 6,843 | 6,350 | |
Revenue from Government | 4D | 6,201 | 5,686 |
Surplus (Deficit) | (642) | (664) | |
Total comprehensive income (loss) | (642) | (664) |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
BALANCE SHEET
as at 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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ASSETS | |||
Financial Assets | |||
Cash and cash equivalents | 5A, 9 | 7,687 | 7,482 |
Trade and other receivables | 5B | 567 | 541 |
Total financial assets | 8,254 | 8,023 | |
Non-Financial Assets | |||
Leasehold improvements | 6A, 6C | 864 | - |
Property, plant and equipment | 6B, 6C | 639 | 353 |
Intangibles | 6D, 6E | 426 | 837 |
Other non-financial assets | 6F | 134 | 87 |
Total non-financial assets | 2,063 | 1,277 | |
Total assets | 10,317 | 9,300 | |
LIABILITIES | |||
Payables | |||
Suppliers | 7A | 589 | 572 |
Other payables | 7B | 410 | 150 |
Total payables | 999 | 722 | |
Provisions | |||
Employee provisions | 8A | 1,372 | 1,217 |
Other provisions | 8B | 130 | - |
Total provisions | 1,502 | 1,127 | |
Total liabilities | 2,501 | 1,939 | |
Net assets | 7,816 | 7,361 | |
EQUITY | |||
Contributed equity | 2,463 | 1,366 | |
Reserves | 206 | 206 | |
Retained surplus | 5,147 | 5,789 | |
Total equity | 7,816 | 7,361 |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2013
Retained earnings
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Asset revaluation surplus
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Contributed equity/capital
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Total equity
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Balance carried forward from previous period |
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Adjusted opening balance |
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Comprehensive Income | ||||||||||||
Surplus (Deficit) for the period |
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Total comprehensive income |
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Transactions with owners | ||||||||||||
Contributions by owners | ||||||||||||
Departmental capital budget |
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Sub-total transactions with owners |
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Closing balance as at 30 June |
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The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
CASH FLOW STATEMENT
for the year ended 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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OPERATING ACTIVITIES | |||
Cash received | |||
Appropriations | 6,201 | 4,940 | |
Sales of goods and rendering of services | 4,639 | 3,314 | |
Net GST received | 485 | 295 | |
Cash transferred from the Official Public Account | - | 1,314 | |
Total financial assets | 11,325 | 9,863 | |
Cash used | |||
Employees | 6,064 | 6,298 | |
Suppliers | 4,311 | 3,421 | |
Section 31 receipts transferred to OPA | 184 | 47 | |
Cash transferred to the Official Public Account | 207 | - | |
Total cash used | 10,766 | 9,766 | |
Net cash from operating activities | 9 | 559 | 97 |
INVESTING ACTIVITIES | |||
Cash received | |||
Proceeds from sales of property, plant and equipment | 5 | 2 | |
Total cash received | 5 | 2 | |
Cash used | |||
Purchase of property, plant and equipment | 1,315 | 161 | |
Purchase of intangibles | 213 | 123 | |
Total cash used | 1,528 | 284 | |
Net cash (used by) investing activities | (1,523) | (282) | |
FINANCING ACTIVITIES | |||
Cash received | |||
Contributed equity - Departmental capital budget | 963 | 179 | |
Total cash received | 963 | 179 | |
Net cash from financing activities | 963 | 179 | |
Net increase (decrease) in cash held | (1) | (6) | |
Cash and cash equivalents at the beginning of the reporting period | 30 | 36 | |
Cash and cash equivalents at the end of the reporting period | 5A | 29 | 30 |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
SCHEDULE OF COMMITMENTS
as at 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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BY TYPE | |||
Commitments receivable | |||
Net GST recoverable on commitments | 589 | 167 | |
Total commitments receivable | 589 | 167 | |
Commitments payable | |||
Capital commitments | |||
Property, plant and equipment | - | (253) | |
Intangibles | (138) | - | |
Total capital commitments1 | (138) | (253) | |
Other commitments | |||
Operating leases | (5,009) | (545) | |
Other | (1,328) | (1,043) | |
Total capital commitments2 | (6,337) | (1,588) | |
Net commitments by type | (5,886) | (1,674) | |
BY MATURITY | |||
Commitments receivable | |||
Other commitments receivable | |||
One year or less | 132 | 107 | |
From one to five years | 223 | 60 | |
Over five years | 234 | - | |
Total other commitments receivable | 589 | 167 | |
Commitments payable | |||
Capital commitments | |||
One year or less | (138) | (253) | |
Total capital commitments1 | (138) | (253) | |
Operating lease commitments | |||
One year or less | (395) | (414) | |
From one to five years | (2,040) | (131) | |
Over five years | (2,574) | - | |
Total operating lease commitments | (5,009) | (545) | |
Other commitments | |||
One year or less | (918) | (514) | |
From one to five years | (410) | (529) | |
Total other commitments2 | (1,328) | (1,043) | |
Net commitments by maturity | (5,886) | (1,674) |
The above statement should be read in conjunction with the accompanying notes.
Note: Commitments are GST inclusive where relevant.
1The nature of capital commitments is development of internally developed software.
2 Operating leases included are effectively non cancellable and comprise:
The lease for office accommodation at 19-23 Moore Street, Turner expires on 31 October 2013. The lease for office accommodation at 243 Northbourne Ave, Lyneham expires on 22 November 2022.
NATIONAL BLOOD AUTHORITY
ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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EXPENSES | |||
Suppliers | 15A | 1,003,772 | 947,820 |
Grants | 15B | 8,092 | 7,773 |
Depreciation and amortisation | 15C | 493 | 291 |
Total expenses administered on behalf of Government | 1,012,357 | 955,884 | |
LESS: OWN-SOURCE INCOME |
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Own-source revenue | |||
Non-taxation revenue | |||
Funding from governments | 16A | 1,049,337 | 1,015,586 |
Interest | 16B | 5,179 | 4,801 |
Other revenue | 16C | 3,765 | 14,523 |
Total own-source revenue administered on behalf of Government | 1,058,281 | 1,034,910 | |
Total own-source income administered on behalf of Government | 1,058,281 | 1,034,910 | |
Net cost of (contribution by) services | (45,924) | (79,026) | |
Surplus | 45,924 | 79,026 | |
Total comprehensive income | 45,924 | 79,026 |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES
as at 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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ASSETS | |||
Financial assets | |||
Cash and cash equivalents | 17A, 20 | 230,672 | 196,754 |
Trade and other receivables | 17B | 17,578 | 16,969 |
Other investments | 17C | 106,037 | 88,335 |
Total financial assets | 354,287 | 302,058 | |
Non-financial assets | |||
Inventories | 18A | 67,654 | 60,173 |
Property, plant and equipment | 18B | 267 | 404 |
Intangibles | 18D | 1,424 | 1,061 |
Other non-financial assets | 18F | 76,031 | 76,068 |
Total financial assets | 145,376 | 137,706 | |
Total assets administered on behalf of Government | 499,663 | 439,764 | |
LIABILITIES | |||
Payables | |||
Suppliers | 19A | 67,168 | 61,551 |
Total payables | 67,168 | 61,551 | |
Total liabilities administered on behalf of Government | 67,168 | 61,551 | |
Net assets | 432,495 | 378,213 |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
ADMINISTERED RECONCILIATION SCHEDULE
as at 30 June 2013
2013 $'000 |
2012 $'000 |
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Opening administered assets less administered liabilities as at 1 July | 378,213 | 291,508 |
Surplus (deficit) items: | ||
Plus: Administered income | 1,058,281 | 1,034,910 |
Less: Administered expenses (non CAC) | (1,012,357) | (955,884) |
Administered transfers to/from Australian Government: | 145,376 | 137,706 |
Appropriation transfers from OPA: | ||
Annual appropriations for administered expenses (non CAC) | 8,358 | 7,679 |
Closing administered assets less administered liabilities as at 30 June | 432,495 | 378,213 |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
ADMINISTERED CASHFLOW STATEMENT
for the year ended 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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OPERATING ACTIVITIES | |||
Cash received | |||
Commonwealth contributions | 674,348 | 640,176 | |
State and territory contributions | 374,989 | 376,213 | |
Interest | 5,245 | 3,067 | |
Net GST received | 100,889 | 94,517 | |
Other | 4,142 | 15,975 | |
Total cash received | 1,159,613 | 1,129,948 | |
Cash used | |||
Grants | 8,901 | 8,551 | |
Suppliers | 1,106,732 | 1,058,418 | |
Total cash used | 1,115,633 | 1,066,969 | |
Net cash flows from operating activities | 20 | 43,980 | 62,979 |
INVESTING ACTIVITIES | |||
Cash received | |||
Investments | 71,615 | 46,535 | |
Total cash received | 71,615 | 46,535 | |
Cash used | |||
Purchase of property, plant & equipment | 12 | 336 | |
Purchase of intangibles | 706 | 147 | |
Investments | 89,317 | 94,259 | |
Total cash used | 90,035 | 94,742 | |
Net cash flows (used by) investing activities | (18,420) | (48,207) | |
Net increase in cash held | 25,560 | 14,772 | |
Cash and cash equivalents at the beginning of the reporting period | 5,340 | 41,157 | |
Cash from Official Public Account for: | |||
- Appropriations | 8,358 | 7,679 | |
- Special accounts | 1,215,610 | 1,176,715 | |
1,223,968 | 1,184,394 | ||
Cash to Official Public Account for: | |||
- Special accounts | 1,254,544 | 1,234,983 | |
Cash and cash equivalents at the end of the reporting period | 17A | 324 | 5,340 |
The above statement should be read in conjunction with the accompanying notes.
NATIONAL BLOOD AUTHORITY
SCHEDULE OF ADMINISTERED COMMITMENTS
as at 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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BY TYPE | |||
Commitments receivable | |||
Net GST recoverable on commitments | 238,391 | 278,569 | |
Total commitments receivable | 238,391 | 278,569 | |
Commitments payable | |||
Other commitments | |||
Other | (2,622,299) | (3,064,260) | |
Total other commitments1 | (2,622,299) | (3,064,260) | |
Net commitments by type | (2,383,908) | (2,785,691) | |
BY MATURITY | |||
Commitments receivable | |||
Other commitments receivable | |||
One year or less | 116,743 | 106,635 | |
From one to five years | 121,648 | 150,500 | |
Over five years | - | 21,434 | |
Total other commitments receivable | 238,391 | 278,569 | |
Commitments payable | |||
Other commitments | |||
One year or less | (1,284,177) | (1,172,987) | |
From one to five years | (1,338,122) | (1,655,502) | |
Over five years | - | (235,771) | |
Total other commitments | (2,622,299) | (3,064,260) | |
Net commitments by maturity | (2,383,908) | (2,785,691) |
The above statement should be read in conjunction with the accompanying notes.
Note: All commitments are GST inclusive where relevant.
1 Other commitments relate to amounts payable under agreements or contracts in respect of which the grantee or supplier has yet to provide goods or services for blood or blood related products required under the agreement or contract to meet demand under the National Supply Plan and Budget.
NATIONAL BLOOD AUTHORITY
SCHEDULE OF ADMINISTERED CONTINGENCIES
as at 30 June 2013
Notes | 2013 $'000 |
2012 $'000 |
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Administered contingent liabilities | |||
Indemnities | 266,800 | 285,481 | |
Total administered contingent liabilities | 266,800 | 285,481 |
The above statement should be read in conjunction with the accompanying notes.
The Deed of Indemnity between the Red Cross and the NBA indemnifies the Red Cross in relation to the Sydney Processing Centre (SPC) and the Melbourne Processing Centre (MPC) funding arrangements. If the SPC or MPC funding arrangements cease in respect of an SPC or MPC contract for any reason, the NBA indemnifies the Red Cross in respect of the liability of the Red Cross to make payments of a Funded Obligation, to the extent that the payments become due and payable under the terms of the SPC or MPC contract after the date when the Red Cross no longer has sufficient SPC or MPC funding to meet the funded obligations as a result of the cessation of the SPC or MPC funding.
Information on significant remote contingencies and contingencies that cannot be quantified is disclosed in Note 21: Administered - Contingent Assets and Liabilities.
TABLE OF CONTENTS - NOTES
Note 1: Summary of Significant Accounting Policies
Note 2: Events After the Reporting Period
Note 3: Expenses
Note 4: Income
Note 5: Financial Assets
Note 6: Non-Financial Assets
Note 7: Payables
Note 8: Provisions
Note 9: Cash Flow Reconciliation
Note 10: Contingent Assets and Liabilities
Note 11: Senior Executive Remuneration
Note 12: Remuneration of Auditors
Note 13: Financial Instruments
Note 14: Financial Assets Reconciliation
Note 15: Administered - Expenses
Note 16: Administered - Income
Note 17: Administered - Financial Assets
Note 18: Administered - Non-Financial Assets
Note 19: Administered - Payables
Note 20: Administered - Cash Flow Reconciliation
Note 21: Administered - Contingent Assets and Liabilities
Note 22: Administered - Investments
Note 23: Administered - Financial Instruments
Note 24: Administered Financial Assets Reconciliation
Note 25: Appropriations
Note 26: Special Accounts and FMA Act Section 39 Investments
Note 27: Compensation and Debt Relief
Note 28: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund
Note 29: Reporting of Outcomes
Note 30: Net Cash Appropriation Arrangements
NATIONAL BLOOD AUTHORITY
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2013
NOTE 1 Summary of Significant Accounting Policies
1.1 Objectives of the National Blood Authority
The National Blood Authority (NBA) is an Australian Government statutory authority which was established on 1 July 2003 with the principal role of managing national blood arrangements, ensuring sufficient supply and providing a new focus on the quality and appropriateness of blood products. It is a not-for-profit entity.
The NBA is structured to meet one outcome:
Outcome 1: Access to a secure supply of safe and affordable blood products, including through national supply arrangements and coordination of best practice standards within agreed funding policies under the national blood arrangements.
The continued existence of the NBA in its present form, and with its present programs, is dependent on Government policy, the enabling legislation National Blood Authority Act 2003, and on continuing funding by Parliament and contributions from States and Territories for the NBA’s administration and programs.
NBA activities contributing to this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the NBA in its own right. Administered activities involve the management or oversight by the NBA, on behalf of the Government, of items controlled or incurred by the Government.
The NBA conducts the following administered activities on behalf of the Government: management and coordination of Australia’s blood supply in accordance with the National Blood Agreement agreed by the Australian Government and the governments of the states and territories. Under this agreement, the Australian Government contributes 63 per cent of blood supply funding and state and territory governments provide 37 per cent.
The NBA operates under a special account – the National Blood Account. Revenues and expenses associated with the funding and supply of blood and blood products, as well as the operations of the NBA are recorded in this special account.
The NBA also operates a special account – the National Managed Fund (Blood and Blood Products) Special Account which is intended to meet potential blood and blood products liability claims against the Australian Red Cross Blood Service.
Details of planned activities for the year can be found in the Agency Portfolio Budget Statements for 2012-13 which have been tabled in Parliament.
1.2 Basis of Preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by Section 49 of the Financial Management and Accountability Act 1997.
The financial statements have been prepared in accordance with:
- Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
- Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the NBA or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
1.3 Significant Accounting Judgments and Estimates
In the process of applying the accounting policies listed in this note, the NBA has made no judgements that have a significant impact on the amounts recorded in the financial statements. No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.
1.4 New Australian Accounting Standards
Adoption of New Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
No new standards, revised standards, interpretations or amending standards that were issued prior to the sign-off date and are applicable to the current reporting period have a financial impact, nor are they expected to have a future financial impact on the NBA.
Future Australian Accounting Standard Requirements
The following new standards and revised standards were issued by the Australian Accounting Standards Board prior to the sign-off date, and are expected to have a financial impact on the NBA for future reporting periods:
- AASB 13 - Fair Value Measurement
- AASB 1055 - Budgetary Reporting
- AASB 9 - Financial Instruments
Other new standards, revised standards, interpretations or amending standards that were issued prior to the sign off date and are applicable to the future reporting period are not expected to have a future financial impact on the NBA.
1.5 Revenue
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
- the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
- the probable economic benefits associated with the transaction will flow to the NBA.
Funding from State and Territory governments is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
- the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
- the probable economic benefits with the transaction will flow to the NBA.
The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of total services to be performed.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of reporting period. Allowances are made when collectability of the debt is no longer probable.
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.
Revenue from Government
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the NBA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case, revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.
1.6 Gains
Resources Received Free of Charge
Resources received free of charge are recognised as gains when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements.
Sale of Assets
Gains from the disposal of assets are recognised when control of the asset has passed to the buyer.
1.7 Transactions with the Government as Owner
Equity Injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.
1.8 Employee Benefits
Liabilities for ‘short term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the NBA is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the NBA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined by reference to FMO 43.2 using the shorthand method. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
Superannuation
The NBA’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS Accumulation Plan (PSSap), the Australian Government Employee Superannuation Trust (AGEST) or other non-government superannuation funds.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap, AGEST and the non-government superannuation funds are defined contribution schemes.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance and Deregulation’s administered schedules and notes.
The NBA makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The NBA accounts for the contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions as at 30 June 2013.
1.9 Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.
The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.
1.10 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes:
- cash on hand;
- demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;
- cash held by outsiders; and
- cash in special accounts.
1.11 Financial Assets
The NBA classifies its financial assets in the following categories:
- held-to-maturity investments; and
- loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.
Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis.
Held-to-Maturity Investments
Non derivative financial assets with fixed or determinable payments and fixed maturity dates that the NBA has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.
Loans and Receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.
Impairment of Financial Assets
Financial assets are assessed for impairment at each balance date.
Financial assets carried at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.
1.12 Financial Liabilities
Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.
Other Financial Liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of 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.
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).
1.13 Contingent Liabilities and Contingent Assets
Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.
There are no quantifiable contingencies in either the current or immediately preceding reporting periods. Information on significant remote contingencies and contingencies that cannot be quantified is disclosed in Note 10: Contingent Assets and Liabilities.
1.14 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.
1.15 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than the thresholds listed below for each class of asset, which are expensed in the year of acquisition acquisition (other than where they form part of a group of similar items which are significant in total).
Asset class | Recognition Threshold |
---|---|
Infrastructure, Plant and Equipment | $2,000 |
Purchased Software | $5,000 |
Leasehold improvements | $10,000 |
Internally Developed Software | $50,000 |
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the NBA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the NBA’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.
Revaluations
Fair values for each class of asset are determined as shown below.
Asset class | Fair value measured at |
---|---|
Leasehold improvements | Depreciated replacement cost |
Infrastructure, plant & equipment | Market selling price |
Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciation
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NBA using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
Asset class | 2013 | 2012 |
---|---|---|
Infrastructure, Plant and Equipment | 3 to 7 years | 3 to 7 years |
Leasehold improvements | Lease term | Lease term |
Impairment
All assets were assessed for impairment at 30 June 2013. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the NBA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected from its use or disposal.
1.16 Intangibles
The NBA’s intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the NBA’s software are:
Type | 2013 | 2012 |
---|---|---|
Purchased software | 3 years | 3 years |
Internally developed software | 5 years | 5 years |
All software assets were assessed for indications of impairment at 30 June 2013.
1.17 Taxation
The NBA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses, liabilities and assets are recognised net of GST except:
- where the amount of the GST incurred is not recoverable from the Australian Taxation Office; and
- for receivables and payables.
1.18 Impact of Williams v Commonwealth
The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.
1.19 Reporting of Administered Activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.
Administered Cash Transfers to and from the Official Public Account
Revenue collected by the NBA for use by the Government rather than the NBA is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the NBA on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.
Revenue
All administered revenues are revenues relating to the course of ordinary activities performed by the NBA on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual agency that oversees distribution or expenditure of the funds as directed. Collectability of debts is reviewed at end of the reporting period. Impairment allowances are made when collectability of the debt is judged to be less, rather than more, likely.
Loans and Receivables
Where loans and receivables are not subject to concessional treatments, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through profit and loss.
Inventories
Inventories held for distribution are valued at cost, adjusted for any loss of service potential. Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:
- raw materials and stores – purchase cost on a first-in-first-out basis; and
- finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.
Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.
Indemnities
The maximum amounts payable under the indemnities given is disclosed in Note 21 the schedule of administered items – contingencies. At the time of completion of the financial statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.
Grants
The NBA administers a number of grant schemes on behalf of government.
Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed of (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.
National Managed Fund
The National Managed Fund was established to manage the liability risks of the Australian Red Cross Blood Service in relation to the provision of blood and blood products. The National Managed Fund was reported in 2003-04 by the Department of Health and Ageing under “Services for Other Governments and Non- Departmental Bodies Special Account”. The NBA now manages this fund on behalf of the Australian Government and States and Territories. To facilitate the transfer of the fund to the NBA a special account under Section 20 of the Financial Management and Accountability (FMA) Act 1997 was established, and this fund was transferred to the NBA for reporting.
The Fund came into effect on 1 July 2000 and to date, no claims have been made against it. The balance of the fund as at 30 June 2013 is $106,541,621 (30 June 2012: $93,981,870) made up of a combination of cash, investments and balance of the special account.
NOTE 2: Events after the Reporting Period
Departmental
There were no events occurring after 30 June 2013 with the potential to significantly affect the ongoing structure and financial activities of the NBA.
Administered
There were no events occurring after 30 June 2013 with the potential to significantly affect the ongoing structure and financial activities of the NBA.
NOTE 3: Expenses
Note 3A: Employee Benefits
2013 $'000 |
2012 $'000 |
|
---|---|---|
Wages and salaries | 4,563 | 4,476 |
Superannuation: | ||
Defined contribution plans | 407 | 391 |
Defined benefit plans | 351 | 308 |
Leave and other entitlements | 903 | 1,027 |
Separation and redundancies | - | 104 |
Other employee benefits | 266 | 470 |
Total employee benefits | 6,490 | 6,776 |
Note 3B: Suppliers
Goods and services | ||
---|---|---|
Consultants | 177 | 258 |
Contractors | 242 | 185 |
Travel | 306 | 297 |
Legal | 140 | 213 |
IT services | 956 | 706 |
Other | 788 | 645 |
Total goods and services | 2,609 | 2,304 |
Goods and services are made up of: | ||
Provision of goods - external parties | 216 | 223 |
Rendering of services - related entities | 526 | 215 |
Rendering of services - external parties | 1,867 | 1,866 |
Total goods and services | 2,609 | 2,304 |
Operating lease rentals - external parties: | ||
Minimum lease payments | 883 | 470 |
Workers compensation expenses | 77 | 66 |
Total other supplier expenses | 960 | 536 |
Total supplier expenses | 3,569 | 2,840 |
Note 3C: Depreciation and Amortisation
Depreciation: | ||
---|---|---|
Property, plant and equipment | 184 | 133 |
Leasehold improvements | 41 | 37 |
Total depreciation | 225 | 170 |
Amortisation: | ||
Intangibles | 624 | 581 |
Total amortisation | 624 | 581 |
Total depreciation and amortisation | 849 | 751 |
Note 3D: Finance Costs
Amortisation: | ||
Unwinding of discount | 3 | - |
Total finance costs | 3 | - |
Note 3E: Losses from Asset Sales
Property, plant and equipment: | ||
Proceeds from sale | 5 | 2 |
Carrying value of assets sold | 43 | 15 |
Total finance costs | 38 | 13 |
NOTE 4: Income
Note 4A: Sale of Goods and Rendering of Services
2013 $'000 |
2012 $'000 |
|
---|---|---|
OWN-SOURCE REVENUE | ||
Rendering of services - related entities | 66 | 194 |
Rendering of services - external parties | 36 | 38 |
Total sale of goods and rendering of services | 102 | 232 |
Note 4B: Other Revenue
Funding from State and Terrritory governments | 3,910 | 3,704 |
Total other revenue | 3,910 | 3,704 |
Funding from State and Territory governments includes $nil revenue (2012: $438,408) which had been previously received and recognised as unearned revenue. | ||
GAINS |
---|
Note 4C: Other Gains
Resources received free of charge | 94 | 94 |
Total other gains | 94 | 94 |
REVENUE FROM GOVERNMENT |
---|
Note 4D: Revenue from Government
Appropriations: | ||
Departmental appropriations | 6,201 | 5,686 |
Total revenue from Government | 6,201 | 5,686 |
NOTE 5: Financial Assets
Note 5A: Cash and Cash Equivalents
2013 $'000 |
2012 $'000 |
|
---|---|---|
Special Account - cash on hand or on deposit | 29 | 30 |
Special Account - cash held in the OPA | 7,658 | 7,452 |
Total cash and cash equivalents | 7,687 | 7,482 |
Note 5B: Trade and Other Receivables
Goods and Services: | ||
---|---|---|
Goods and services - related entities | - | 77 |
Total receivables for goods and services | - | 77 |
Appropriations receivable: | ||
For existing programs | 509 | 375 |
Total appropriations receivable | 509 | 375 |
Other receivables: | ||
GST receivable from the Australian Taxation Office | 58 | 89 |
Total other receivables | 58 | 89 |
Total trade and other receivables (gross) | 567 | 541 |
Total trade and other receivables (net) | 567 | 541 |
Receivables are expected to be recovered in: | ||
No more than 12 months | 567 | 541 |
Total trade and other receivables (net) | 567 | 541 |
Receivables are aged as follows: | ||
Not overdue | 567 | 541 |
Total receivables (gross) | 567 | 541 |
NOTE 6: Non-Financial Assets
Note 6A: Leasehold improvements
2013 $'000 |
2012 $'000 |
|
---|---|---|
Fair value | 905 | 157 |
Accumulated depreciation | (41) | (157) |
Total leasehold improvements | 864 | - |
No indicators of impairment were found for leasehold improvements. No leasehold improvements are expected to be sold or disposed of within the next 12 months. |
Note 6B: Property, Plant and Equipment
Other property, plant and equipment: | ||
---|---|---|
Fair value | 932 | 601 |
Accumulated depreciation | (293) | (248) |
Total property, plant and equipment | 639 | 353 |
No indicators of impairment were found for property, plant and equipment. No property, plant or equipment is expected to be sold or disposed of within the next 12 months. |
||
Revaluations of non-financial assets. | ||
All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30/06/10, an independent valuer, the Australian Valuation Office, conducted the revaluations. No revaluation increments for leasehold improvements (2012: $nil) and no increments for plant and equipment (2012: $nil) were credited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet. No decrements were expensed (2012: $nil). |
Note 6C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2012-13)
Leasehold improvements $'000 |
Other property, plant and equipment $'000 |
Total $'000 |
|
---|---|---|---|
As at 1 July 2012 | |||
Gross book value | 157 | 601 | 758 |
Accumulated depreciation and impairment | (157) | (248) | (405) |
Net book value 1 July 2012 | - | 353 | 353 |
Additions: | |||
By purchase | 905 | 513 | 1,418 |
Depreciation expense | (41) | (184) | (225) |
Disposals: | |||
Other | - | (43) | (43) |
Net book value 30 June 2013 | 864 | 639 | 1,503 |
Net book value as of 30 June 2013 represented by: | |||
Gross book value | 905 | 932 | 1,837 |
Accumulated depreciation and impairment | (41) | (293) | (334) |
864 | 639 | 1,503 |
Note 6C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2011-12)
As at 1 July 2011 | |||
---|---|---|---|
Gross book value | 157 | 467 | 624 |
Accumulated depreciation and impairment | (120) | (133) | (253) |
Net book value 1 July 2011 | 37 | 334 | 371 |
Additions: | |||
By purchase | - | 185 | 185 |
Depreciation expense | (37) | (133) | (170) |
Other movements | - | (18) | (18) |
Depreciation expense | |||
Other disposals | - | (15) | (15) |
Net book value 30 June 2012 | - | 353 | 353 |
Net book value as of 30 June 2012 represented by: | |||
Gross book value | 157 | 601 | 758 |
Accumulated depreciation and impairment | (157) | (248) | (405) |
- | 353 | 353 |
Note 6D: Intangibles
2013 $'000 |
2012 $'000 |
|
---|---|---|
Computer software: | ||
Internally developed - in use | 2,699 | 2,674 |
Purchased | 708 | 542 |
Accumulated amortisation | (2,981) | (2,379) |
Total intangibles | 426 | 837 |
No indicators of impairment were found for intangible assets. No intangibles are expected to be sold or disposed of within the next 12 months. |
Note 6E: Reconciliation of the Opening and Closing Balances of Intangibles (2012-13)
Item | Computer software internally developed $'000 |
Computer software purchased $'000 |
Total $'000 |
---|---|---|---|
As at 1 July 2012 | |||
Gross book value | 2,674 | 542 | 3,216 |
Accumulated depreciation and impairment | (1,969) | (410) | (2,379) |
Net book value 1 July 2012 | 705 | 132 | 837 |
Additions: | |||
By purchase or internally developed | 25 | 188 | 213 |
Amortisation | (464) | (160) | (624) |
Other Disposals: | |||
Cost | - | (22) | (22) |
Accumulated amortisation | - | 22 | 22 |
Net book value 30 June 2013 | 266 | 160 | 426 |
Net book value as of 30 June 2013 represented by: | |||
Gross book value | 2,699 | 708 | 3,407 |
Accumulated depreciation and impairment | (2,433) | (548) | (2,981) |
266 | 160 | 426 |
Note 6E: Reconciliation of the Opening and Closing Balances of Intangibles (2011-12)
Item | Computer software internally developed $'000 |
Computer software purchased $'000 |
Total $'000 |
---|---|---|---|
As at 1 July 2012 | |||
Gross book value | 2,566 | 527 | 3,093 |
Accumulated depreciation and impairment | (1,484) | (314) | (1,798) |
Net book value 1 July 2011 | 1,082 | 213 | 1,295 |
Additions: | |||
By purchase or internally developed | 108 | 15 | 123 |
Amortisation | (485) | (96) | (581) |
Net book value 30 June 2012 | 705 | 132 | 837 |
Net book value as of 30 June 2012 represented by: | |||
Gross book value | 2,674 | 542 | 3,216 |
Accumulated depreciation and impairment | (1,969) | (410) | (2,379) |
705 | 132 | 837 |
Note 6F: Other Non-Financial Assets
Item | 2013 $'000 |
2012 $'000 |
---|---|---|
Prepayments | 134 | 87 |
Total other non-financial assets | 134 | 87 |
Total other non-financial assets are expected to be recovered in: | ||
No more than 12 months | 134 | 87 |
Total other non-financial assets | 134 | 87 |
No indicators of impairment were found for other non-financial assets. |
NOTE 7: Payables
Note 7A: Suppliers
Item | 2013 $'000 |
2012 $'000 |
---|---|---|
Trade creditors and accruals | 457 | 572 |
Operating lease rentals | 132 | - |
Total suppliers payables | 589 | 572 |
Supplier payables expected to be settled within 12 months: | ||
Related entities | 90 | 13 |
External parties | 499 | 559 |
Total suppliers payables | 589 | 572 |
Settlement was usually made within 30 days. |
Note 7B: Other Payables
Wages and salaries | 137 | 131 |
Superannuation | 24 | 19 |
Lease incentive | 249 | - |
Total other payables | 410 | 150 |
Total other payables are expected to be settled in: | ||
No more than 12 months | 410 | 150 |
Total other payables | 410 | 150 |
NOTE 8: Provisions
Note 8A: Employee Provisions
Item | 2013 $'000 |
2012 $'000 |
---|---|---|
Leave | 1,372 | 1,217 |
Total employee provisions | 1,372 | 1,217 |
Employee provisions are expected to be settled in: | ||
No more than 12 months | 458 | 551 |
More than 12 months | 914 | 666 |
Total employee provisions | 1,372 | 1,217 |
Note 8B: Other Provisions
Provision for restoration obligations | 130 | - |
Total other provisions | 130 | - |
Other provisions are expected to be settled in: | ||
More than 12 months | 130 | - |
Total other provisions | 130 | - |
Provision for restoration $'000 |
Total $'000 |
|
---|---|---|
Carrying amount 1 July 2012 | ||
Additional provisions made | 127 | 127 |
Unwinding of discount or change in discount rate | 3 | 3 |
Closing balance 2013 | 130 | 130 |
The NBA currently has 1 (2012: nil) agreement for the leasing of premises which have provisions requiring the NBA to restore the premises to their original condition at the conclusion of the lease. The NBA has made a provision to reflect the present value of this obligation.
NOTE 9: Cash Flow Reconciliation
2013 $'000 |
2012 $'000 |
|
---|---|---|
Cash and cash equivalents as per: | ||
Cash flow statement | 29 | 30 |
Balance sheet | 7,687 | 7,482 |
Less cash held in the OPA | (7,658) | (7,452) |
Difference | - | - |
Net cost of services | (6,843) | (6,350) |
Add revenue from Government | 6,201 | 5,686 |
Adjustments for non-cash items: | ||
---|---|---|
Depreciation / amortisation | 848 | 751 |
Loss on disposal of assets | 38 | 13 |
Changes in assets and liabilities: | ||
(Increase) Decrease in net receivables | (98) | 1,149 |
(Increase) in non-financial assets | (47) | (25) |
Increase in employee provisions | 155 | 24 |
Increase in supplier payables | 45 | 145 |
Increase (Decrease) in other payables | 260 | (1,296) |
Net cash from operating activities | 559 | 97 |
NOTE 10: Contingent Assets and Liabilities
Quantifiable Contingencies
There were no quantifiable contingent assets or liabilities in this reporting period.
Unquantifiable Contingencies
There were no unquantifiable contingent assets or liabilities in this reporting period.
Significant Remote Contingencies
The Australian Government has indemnified the lessor of the National Blood Authority’s premises for negligent acts committed by the National Blood Authority up to the value of $1,000,000.
NOTE 11: Senior Executive Remuneration
Note 11A: Senior Executive Remuneration Expense for the Reporting Period
2013 $'000 |
2012 $'000 |
|
---|---|---|
Short-term employee benefits: | ||
Salary | 723,726 | 709,729 |
Annual leave accrued | 34,700 | 15,688 |
Vehicle allowances | 50,721 | 47,115 |
Retention bonuses | 20,000 | 51,000 |
Total short-term employee benefits | 829,147 | 823,532 |
Post-employment benefits: | ||
Superannuation | 104,687 | 113,948 |
Total post-employment benefits | 104,687 | 113,948 |
Other long-term benefits: | ||
Long-service leave | 33,193 | 15,471 |
Total other long-term benefits | 33,193 | 15,471 |
Total employment benefits | 967,027 | 952,951 |
Notes
1. Note 11A is prepared on an accrual basis (so the performance bonus expenses disclosed above differ from the cash 'Bonus paid' in Note 11B).
2. Note 11A includes acting arrangements and part-year service where total remuneration expensed for a senior executive was more than $180,000. In 2013, there were 2 SES on acting arrangements (2012: 1 SES).
2013
Average annual reportable remuneration1 | Substantive Senior Executives No. | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total reportable remuneration $ |
---|---|---|---|---|---|---|
Total remuneration (including part-time arrangements): | ||||||
less than $180,000 | - | - | - | - | - | - |
$210,000 to $239,999 | 1 | 200,001 | 31,448 | - | - | 231,449 |
$270,000 to $299,999 | 1 | 242,679 | 27,690 | - | - | 270,369 |
Total | 2 |
2012
Average annual reportable remuneration1 | Substantive Senior Executives No. | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total reportable remuneration $ |
---|---|---|---|---|---|---|
Total remuneration (including part-time arrangements): | ||||||
less than $180,000 | 4 | 85,861 | 6,496 | - | - | 92,357 |
$210,000 to $239,999 | 2 | 183,452 | 42,481 | - | - | 225,933 |
$270,000 to $299,999 | 1 | 236,259 | 35,858 | - | - | 272,117 |
Total | 7 |
Notes
- This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band during 2011-12, 3 substantive senior executives terminated their employment with the NBA and 2 staff became substantive senior executives for the first time.
- 'Reportable salary' includes the following:
- gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
- reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits);
- exempt foreign employment income; and
- salary sacrificed benefits.
- The 'contributed superannuation' amount is the average cost to the NBA for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.
- 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
- 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the NBA during the financial year.
Note 11C: Other Highly Paid Staff
2013
Average annual reportable remuneration1 | Other highly paid staff | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total $ |
---|---|---|---|---|---|---|
Total remuneration (including part-time arrangements): | ||||||
$180,000 to $209,999 | 2 | 171,313 | 22,774 | - | - | 194,087 |
Total | 2 |
2012
Average annual reportable remuneration1 | Other highly paid staff | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total $ |
---|---|---|---|---|---|---|
Total remuneration (including part-time arrangements): | ||||||
$180,000 to $209,999 | 1 | 180,461 | 17,127 | - | - | 197,588 |
Total | 1 |
Notes
- This table reports staff:
- who were employed by the NBA during the reporting period;
- whose reportable remuneration was $180,000 or more for the financial period; and
- were not required to be disclosed in Note 11B or director disclosures.
Each row is an averaged figure based on headcount for individuals in the band. - 'Reportable salary' includes the following:
- gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
- reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits);
- exempt foreign employment income; and
- salary sacrificed benefits.
- The 'contributed superannuation' amount is the average cost to the NBA for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.
- 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
- 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the NBA during the financial year.
NOTE 12: Remuneration of Auditors
2013 $'000 |
2012 $'000 |
|
---|---|---|
Financial statement audit services were provided free of charge to the NBA by the Australian National Audit Office (ANAO). | ||
Fair value of the services provided | ||
Financial statement audit services | 94 | 94 |
Total | 94 | 94 |
No other services were provided by the auditors of the financial statements. |
NOTE 13: Financial Instruments
NOTE 13A: Categories of Financial Instruments
2013 $'000 |
2012 $'000 |
|
---|---|---|
Financial Assets | ||
Loans and receivables: | ||
Cash and cash equivalents | 7,687 | 7,482 |
Trade and other receivables | - | 77 |
Carrying amount of financial assets | 7,687 | 7,559 |
Financial Liabilities | ||
At amortised cost: | ||
Trade and other creditors | 589 | 572 |
Carrying amount of financial liabilities | 589 | 572 |
Note 13B: Fair Value of Financial Instruments
Financial assets
The fair values of all monetary financial assets approximate their carrying amounts.
Financial liabilities
The fair values of all monetary financial liabilities approximate their carrying amounts. All financial liabilities are current, therefore a maturity analysis is not required.
Note 13C: Credit Risk
The NBA's financial liabilities are trade and other creditors. The exposure to liquidity risk is based on the notion that the NBA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the NBA (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
The maturity for non-derivative financial liabilities of $588,889 is within 1 year (2012: $572,396 within 1 year).
Note 13E: Market Risk
The NBA holds basic financial instruments that do not expose it to certain market risks. The NBA is not exposed to 'interest rate risk', 'currency risk' or 'other price risk'.
NOTE 14: Financial Assets Reconciliation
2013 $'000 |
2012 $'000 |
|
---|---|---|
Financial Assets | ||
Total financial assets as per balance sheet | 8,254 | 8,023 |
Less: non-financial instrument components: | ||
Appropriations receivable | 509 | 375 |
GST receivable from the Australian Taxation Office | 58 | 89 |
Total financial assets as per financial instruments note | 7,687 | 7,559 |
NOTE 15: Administered - Expenses
Note 15A: Suppliers
2013 $'000 |
2012 $'000 |
|
---|---|---|
Purchases of blood and blood products | 999,690 | 944,297 |
Consultants | 1,883 | 1,582 |
Contractors | 1,501 | 1,159 |
Travel | 53 | 63 |
IT services | 486 | 468 |
Other | 159 | 251 |
Total goods and services | 1,003,772 | 947,820 |
Goods and services are made up of: | ||
Provision of goods - external parties | 999,842 | 944,522 |
Rendering of services - external parties | 3,930 | 3,298 |
Total goods and services | 1,003,772 | 947,820 |
Total suppliers expenses | 1,003,772 | 947,820 |
Note 15B: Grants
Private sector: | ||
---|---|---|
Non-profit organisations | 8,092 | 7,773 |
Total grants | 8,092 | 7,773 |
Note 15C: Depreciation and Amortisation
Depreciation: | ||
---|---|---|
Property, plant and equipment | 149 | 33 |
Amortisation: | ||
Intangibles | 344 | 258 |
Total depreciation and amortisation | 493 | 291 |
NOTE 16: Administered - Income
Non-Taxation Revenue
Note 16A: Funding from Governments
Commonwealth contributions | 674,348 | 640,176 |
State & Territory contributions | 374,989 | 375,410 |
Total funding from governments | 1,049,337 | 1,015,586 |
Note 16B: Interest
Deposits | 5,179 | 4,801 |
Total interest | 5,179 | 4,801 |
Note 16C: Other Revenue
Other contributions1 | 3,765 | 14,523 |
Total other revenue | 3,765 | 14,523 |
1 Other contributions relate principally to the return of the prior year surplus from the Blood Service under the Deed of Agreement. |
NOTE 17: Administered - Financial Assets
Note 17A: Cash and Cash Equivalents
2013 $'000 |
2012 $'000 |
|
---|---|---|
Special Account - cash on hand or on deposit | 324 | 5,340 |
Special Account - cash held in the OPA | 230,348 | 191,414 |
Total cash and cash equivalents | 230,672 | 196,754 |
Note 17B: Trade and Other Receivables
Goods and services: | ||
---|---|---|
Goods and services receivable - external parties | 3,037 | 3,037 |
Total receivables for goods and services | 3,037 | 3,037 |
Other receivables: | ||
Interest | 2,752 | 2,818 |
GST receivable from Australian Taxation Office | 14,826 | 14,151 |
Total other receivables | 17,578 | 16,969 |
Total trade and other receivables (gross) | 20,615 | 20,006 |
Less impairment allowance account: | ||
Goods and services | (3,037) | (3,037) |
Total trade and other receivables (net) | 17,578 | 16,969 |
Receivables are expected to be recovered in: | ||
No more than 12 months | 17,578 | 16,969 |
Total trade and other receivables (net) | 17,578 | 16,969 |
Receivables were aged as follows: | ||
Not overdue | 17,578 | 16,969 |
Overdue by: | ||
More than 90 days | 3,037 | 3,037 |
Total receivables (gross) | 20,615 | 20,006 |
The impairment allowance account is aged as follows: | ||
Overdue by: | ||
More than 90 days | (3,037) | (3,037) |
Total impairment allowance account | (3,037) | (3,037) |
Credit terms are within 30 days from date of invoice (2012: 30 days). | ||
Reconciliation of the Impairment Allowance Account | ||
Movements | ||
Other Receivables | ||
Opening balance | (3,037) | (3,037) |
Increase/decrease recognised in net surplus | - | - |
Closing balance | (3,037) | (3,037) |
Note 17C: Other Investments
Deposits1 | 106,037 | 88,335 |
Total other investments | 106,037 | 88,335 |
Other investments are expected to be recovered in: | ||
No more than 12 months | 38,870 | 60,215 |
More than 12 months | 67,167 | 28,120 |
Total other investments | 106,037 | 88,335 |
1 Monies invested in term deposits with various approved institutions under Section 39 of the Financial Management and Accountability Act 1997. |
NOTE 18: Administered - Non Financial Assets
Note 18A: Inventories
2013 $'000 |
2012 $'000 |
|
---|---|---|
National Reserve inventory held for distribution | 41,543 | 39,213 |
Other inventory held for distribution | 26,111 | 20,861 |
Total inventories | 67,654 | 60,173 |
During 2012-13, $788,280 of inventory held for distribution related to a net write-off of damaged and expired stock and was recognised as an expense (2012: $599,548). No items of inventory were recognised at fair value less cost to sell. All inventory is expected to be distributed in the next 12 months. |
Note 18B: Property, plant and equipment
Other property, plant and equipment: | ||
---|---|---|
Fair value | 455 | 443 |
Accumulated depreciation | (188) | (39) |
Total property, plant and equipment | 267 | 404 |
No indicators of impairment were found for property, plant and equipment. No property, plant or equipment is expected to be sold or disposed of within the next 12 months. | ||
Revaluations of non-financial assets | ||
No revaluation increments for plant and equipment (2012: $nil) were credited to the asset revaluation surplus. No decrements (2012: $nil) were expensed. |
Note 18C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2012-13)
Other property, plant and equipment $'000 |
Total $'000 |
|
---|---|---|
As at 1 July 2012 | ||
Gross book value | 443 | 443 |
Accumulated depreciation and impairment | (39) | (39) |
Net book value 1 July 2012 | 404 | 404 |
Additions: | ||
By purchase | 12 | 12 |
Depreciation expense | (149) | (149) |
Net book value 30 June 2013 | 267 | 267 |
Net book value as of 30 June 2013 represented by: | ||
Gross book value | 455 | 455 |
Accumulated depreciation and impairment | (188) | (188) |
267 | 267 |
Note 18C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2011-12)
Other property, plant and equipment $'000 |
Total $'000 |
|
---|---|---|
As at 1 July 2012 | ||
Gross book value | 36 | 36 |
Accumulated depreciation and impairment | (6) | (6) |
Net book value 1 July 2012 | 30 | 30 |
Additions: | ||
By purchase | 407 | 407 |
Depreciation expense | (33) | (33) |
Net book value 30 June 2013 | 404 | 404 |
Net book value as of 30 June 2013 represented by: | ||
Gross book value | 443 | 443 |
Accumulated depreciation and impairment | (39) | (39) |
404 | 404 |
Note 18D: Intangibles
2013 $'000 |
2012 $'000 |
|
---|---|---|
Computer software: | ||
Internally developed - in progress | - | 801 |
Internally developed - in use | 1,733 | 868 |
Purchased | 147 | 147 |
Accumulated amortisation | (456) | (755) |
Total intangibles | 1,424 | 1,061 |
No indicators of impairment were found for intangible assets. No intangibles are expected to be sold or disposed of with the next 12 months. |
NOTE 18E: Reconciliation of the Opening and Closing Balances of Intangibles (2012-13)
Computer software internally developed $'000 |
Computer software purchased $'000 |
Total $'000 |
|
---|---|---|---|
As at 1 July 2012 | |||
Gross book value | 1,669 | 147 | 1,816 |
Accumulated amortisation and impairment | (734) | (21) | (755) |
Net book value 1 July 2012 | 935 | 126 | 1,061 |
Additions: | |||
By purchase or internally developed | 1,508 | - | 1,508 |
Amortisation | (295) | (49) | (334) |
Other Disposals: | |||
Cost | (643) | - | (643) |
Accumulated amortisation | 643 | - | 643 |
Net book value 30 June 2013 | 2,148 | 77 | 2,225 |
Net book value as of 30 June 2013 represented by: | |||
Gross book value | 2,534 | 147 | 2,681 |
Accumulated amortisation and impairment | (386) | (70) | (456) |
2,148 | 77 | 2,225 |
NOTE 18E: Reconciliation of the Opening and Closing Balances of Intangibles (2011-12)
As at 1 July 2011 | |||
---|---|---|---|
Gross book value | 868 | - | 868 |
Accumulated amortisation and impairment | (497) | - | (497) |
Net book value 1 July 2011 | 371 | - | 371 |
Additions: | |||
By purchase or internally developed | 801 | 147 | 948 |
Amortisation | (237) | (21) | (258) |
Net book value 30 June 2012 | 935 | 126 | 1,061 |
Net book value as of 30 June 2012 represented by: | |||
Gross book value | 1,669 | 147 | 1,816 |
Accumulated amortisation and impairment | (734) | (21) | (755) |
935 | 126 | 1,061 |
Note 18F: Other Non-Financial Assets
2013 $'000 |
2012 $'000 |
|
---|---|---|
Prepayments | 76,031 | 76,068 |
Total other non-financial assets | 76,031 | 76,068 |
No indicators of impairment were found for other non-financial assets. | ||
Total other non-financial assets are expected to be recovered in: | ||
No more than 12 months | 76,031 | 76,068 |
Total other non-financial assets | 76,031 | 76,068 |
NOTE 19: Administered - Payables
Note 19A: Suppliers
2013 $'000 |
2012 $'000 |
|
---|---|---|
Trade creditors and accruals | 67,168 | 61,551 |
Total suppliers | 67,168 | 61,551 |
Supplier payables expected to be settled within 12 months: | ||
External parties | 67,168 | 61,551 |
Total suppliers | 67,168 | 61,551 |
Settlement was usually made within 30 days |
NOTE 20: Cash Flow Reconciliation
Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement
2013 $'000 |
2012 $'000 |
|
---|---|---|
Cash and cash equivalents as per: | ||
Schedule of administered cash flows | 324 | 5,340 |
Schedule of administered assets and liabilities | 230,672 | 196,754 |
Less cash held in the OPA | (230,348) | 191,414 |
Difference | - | - |
Reconciliation of net cost of services to net cash from operating activities: | ||
Net contribution by services | 45,924 | 79,026 |
Adjustments for non-cash items | ||
Depreciation / amortisation | 493 | 291 |
Changes in assets and liabilities: | ||
(Increase) in net receivables | (609) | (2,267) |
(Increase) in inventories | (7,481) | (5,149) |
(Increase) / decrease in non-financial assets | 36 | (1,468) |
Increase / (decrease) in supplier payables | 5,617 | (7,454) |
Net cash from operating activities | 43,980 | 62,979 |
NOTE 21: Administered - Contingent Assets and Liabilities
Unquantifiable Administered Contingencies
Under certain conditions the Australian Government and the States/Territories jointly provide indemnity for the the Australian Red Cross Blood Service (the Blood Service) through a cost sharing arrangement for claims, both current and potential, regarding personal injury and loss of damage suffered by a recipient of certain blood products. The Australian Government’s share of any liability is limited to sixty three percent of any agreed net cost.
The Deed of Agreement between the Australian Red Cross Society (the Red Cross) and the NBA in relation to the operation of the Blood Service includes certain indemnities and a limit of liability in favour of the Red Cross. These cover a defined set of potential business, product and employee risks and liabilities arising from the operations of the Blood Service. The indemnities and limitation of liability only operate in the event of the expiryand non-renewal, or the earlier termination, of the Deed of Agreement, and only within a defined scope. They are also subject to appropriate limitations and conditions including in relation to mitigation, contributory fault, and the process of handling relevant claims.
In the event of the occurrence of the contingent liability disclosed in the Schedule of Administered Contingencies, the Commonwealth, or its nominee, would be assigned ownership of the Melbourne Processing Centre building.
NOTE 22: Administered - Investments
The principal activities of each of the NBA's administered investments were as follows:
Other Investments – The NBA has funds invested in term deposits with various approved institutions under Section 39 of the Financial Management and Accountability Act 1997 for the purposes of receiving passive investment income.
NOTE 23: Administered - Financial Instruments
NOTE 23A: Categories of Financial Instruments
2013 $'000 |
2012 $'000 |
|
---|---|---|
Financial assets | ||
Held-to-maturity: | ||
Deposits | 106,037 | 88,335 |
Total | 106,037 | 88,335 |
Loans and receivables: | ||
Cash and cash equivalents | 230,672 | 196,754 |
Trade and other receivables | 2,752 | 2,818 |
Total | 233,424 | 199,572 |
Carrying amount of financial assets | 339,461 | 287,907 |
Financial Liabilities | ||
At amortised cost: | ||
Trade and other creditors | 67,168 | 61,551 |
Carrying amount of financial liabilities | 67,168 | 61,551 |
Note 23B: Net Income and Expense from Financial Assets
2013 $'000 |
2012 $'000 |
|
---|---|---|
Held-to-maturity: | ||
Interest Revenue | 5,131 | 3,204 |
Net gain held-to-maturity | 5,131 | 3,204 |
Loans and receivables | ||
Interest Revenue | 48 | 1,597 |
Net gain from loans and receivables | 48 | 1,597 |
Net gain from financial assets | 5,179 | 4,801 |
Note 23C: Fair Value of Financial Instruments
Financial assets
The fair values of all monetary financial assets approximate their carrying amounts.
Financial liabilities
The fair values of all monetary financial liabilities approximate their carrying amounts.
Note 23D: Credit Risk
The NBA is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets in the Balance Sheet. The NBA has no significant exposures to any concentrations of credit risk.
The credit quality of financial instruments individually determined as impaired is $3,037,236 (2012: $3,037,236). Refer to Note 17B.
Factors that have been used in assessing the asset to be impaired include the age and recoverability of the debt.
Note 23E: Liquidity Risk
The NBA's financial liabilities are trade and other creditors. The exposure to liquidity risk is based on the notion that the NBA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to special account funding and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
The maturity for non-derivative financial liabilities of $67,168,144 (2012: $61,551,367).
Note 23F: Market Risk
The NBA holds basic financial instruments that do not expose it to certain market risks.
The NBA is not exposed to 'interest rate risk', 'currency risk',or 'other price risk'.
NOTE 24: Administered Financial Assets Reconciliation
2013 $'000 |
2012 $'000 |
|
---|---|---|
Financial Assets | ||
Total financial assets as schedule of administered assets and liabilities | 354,287 | 302,058 |
Less: non-financial instrument components: | ||
GST receivable from Australian Taxation Office | 14,826 | 14,151 |
Total financial assets as per financial instruments note | 339,461 | 287,907 |
Note 25 Appropriations
Table A: Annual Appropriations (Recoverable GST exclusive)
2013 Appropriations
|
Appropriation applied in 2013 (current and prior years) $'000 |
Variance $'000 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
DEPARTMENTAL |
|
|||||||||||
Ordinary annual services |
|
7,348 | 134 | |||||||||
Other services |
|
|||||||||||
Equity |
|
- | - | |||||||||
Total departmental |
|
7,348 | 134 | |||||||||
ADMINISTERED |
|
|||||||||||
Ordinary annual services |
|
|||||||||||
Administred items |
|
8,358 | - | |||||||||
Total administered |
|
8,358 | - |
Notes
- Appropriations reduced under Appropriation Acts (Nos. 1,3&5) 2012-13: sections 10,11 and 12 and under Appropriation Acts (Nos. 2,4&6) 2012-13: sections 12,13 and 14. Departmental appropriations do not lapse at financial year end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.
As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1,3&5) 2012-13 and section 12 of Appropropriation Acts (Nos 2,4,&6) 2012-13, the appropriation is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister's determination, which is disallowable by Parliament. - Advance to the Finance Minister (AFM) - Appropriation Acts (Nos. 1,3&5) 2012-13: section 13 and Appropriation Acts (Nos. 2,4&6) 2012-13: section 15.
- Table A includes Ordinary annual services - Departmental Capital Budget and Payments for non-financial assets as disclosed in Table B.
Note 25 Appropriations
Table A: Annual Appropriations (Recoverable GST exclusive)
2013 Appropriations
|
Appropriation applied in 2013 (current and prior years) $'000 |
Variance $'000 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
DEPARTMENTAL |
|
|||||||||||
Ordinary annual services |
|
5,166 | 375 | |||||||||
Other services |
|
|||||||||||
Equity |
|
- | - | |||||||||
Total departmental |
|
5,166 | 375 | |||||||||
ADMINISTERED |
|
|||||||||||
Ordinary annual services |
|
|||||||||||
Administred items |
|
7,679 | - | |||||||||
Total administered |
|
7,679 | - |
Notes
- Appropriations reduced under Appropriation Acts (Nos. 1,3&5) 2012-13: sections 10,11 and 12 and under Appropriation Acts (Nos. 2,4&6) 2012-13: sections 12,13 and 14. Departmental appropriations do not lapse at financial year end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.
As with departmental appropriations, the responsible Minister may decide that part or all of an administered appropriation is not required and request that the Finance Minister reduce that appropriation. For administered appropriations reduced under section 11 of Appropriation Acts (Nos 1,3&5) 2012-13 and section 12 of Appropropriation Acts (Nos 2,4,&6) 2012-13, the appropriation is taken to be reduced to the required amount specified in Table F of this note once the annual report is tabled in Parliament. All administered appropriations may be adjusted by a Finance Minister's determination, which is disallowable by Parliament. - Advance to the Finance Minister (AFM) - Appropriation Acts (Nos. 1,3&5) 2012-13: section 13 and Appropriation Acts (Nos. 2,4&6) 2012-13: section 15.
- Table A includes Ordinary annual services - Departmental Capital Budget and Payments for non-financial assets as disclosed in Table B.
Table B: Departmental and Administered Capital Budgets (Recoverable GST exclusive)
2013 Capital Budget Appropriations
|
Capital Budget Appropriations applied in 2013
|
Variance $'000 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
DEPARTMENTAL |
|
|
|||||||||||
Ordinary annual services - Departmental |
|
|
|||||||||||
Capital Budget(a) |
|
|
134 | ||||||||||
ADMINISTERED |
|
|
|||||||||||
Ordinary annual services - Administered |
|
|
|||||||||||
Capital Budget(a) |
|
|
- |
Notes:
- Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
- Appropriations reduced under Appropriation Acts (No. 1,3,5) 2012-13: sections 10,11,12 and 15 or via a determination by the Finance Minister.
- Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition and the and the capital repayment component of finance leases.
Table B: Departmental and Administered Capital Budgets (Recoverable GST exclusive)
2012 Capital Budget Appropriations
|
Capital Budget Appropriations applied in 2012
|
Variance $'000 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
DEPARTMENTAL |
|
|
|||||||||||
Ordinary annual services - Departmental |
|
|
|||||||||||
Capital Budget(a) |
|
|
375 | ||||||||||
ADMINISTERED |
|
|
|||||||||||
Ordinary annual services - Administered |
|
|
|||||||||||
Capital Budget(a) |
|
|
- |
Notes:
- Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
- Appropriations reduced under Appropriation Acts (No. 1,3,5) 2012-13: sections 10,11,12 and 15 or via a determination by the Finance Minister.
- Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition and the and the capital repayment component of finance leases.
Table C: Unspent Annual Appropriations (Recoverable GST exclusive)
Authority | 2013 $'000 |
2012 $'000 |
---|---|---|
DEPARTMENTAL | ||
Appropriation Act (No.1) 2012-13 | 509 | - |
Appropriation Act (No.1) 2011-12 | - | 375 |
Total | 509 | 375 |
Table D: Special Appropriations (Recoverable GST exclusive)
Table D is blank for financial years 2012 and 2013.
Table E: Disclosure by Agent in Relation to Annual and Special Appropriations (Recoverable GST exclusive)
Table E is blank for financial years 2012 and 2013.
Table F: Reduction in Administered Items (Recoverable GST exclusive)
2013 | Amount required3 - by Appropriation Act | Total amount required3 | Total amount appropriated4 | Total reduction5 | |||
---|---|---|---|---|---|---|---|
Ordinary Annual Services |
|
||||||
Outcome 1 |
|
$8,358,000.00 | $8,358,000.00 | - |
Notes:
- Numbers in this section are disclosed to the cent.
- Administered items for 2013 were reduced to these amounts when these financial statements were tabled in Parliament as part of the NBA's 2013 annual report. This reduction was effective in 2014 , but the amounts were reflected in Table A in the 2013 financial statements in the column 'Appropriations reduced' as they were adjustments to 2013 appropriations.
- Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).
- Total amount appropriated in 2013.
- Total reduction effective in 2014.
2012 | Amount required3 - by Appropriation Act | Total amount required3 | Total amount appropriated4 | Total reduction5 | |||
---|---|---|---|---|---|---|---|
Ordinary Annual Services |
|
||||||
Outcome 1 |
|
$7,679,000.00 | $7,679,000.00 | - |
Notes:
- Numbers in this section are disclosed to the cent.
- Administered items for 2013 were reduced to these amounts when these financial statements were tabled in Parliament as part of the NBA's 2013 annual report. This reduction was effective in 2014 , but the amounts were reflected in Table A in the 2013 financial statements in the column 'Appropriations reduced' as they were adjustments to 2013 appropriations.
- Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).
- Total amount appropriated in 2013.
- Total reduction effective in 2014.
NOTE 26: Special Accounts and FMA Act Section 39
Note 26A: Special Accounts (Recoverable GST exclusive)
The National Blood Account1
|
National Managed Fund (Blood and Blood Products)2
|
|||||
---|---|---|---|---|---|---|
Balance brought forward from previous period |
|
|
||||
Increases: |
|
|
||||
Appropriation credited to special account |
|
|
||||
Costs recovered |
|
|
||||
Realised investments |
|
|
||||
Other receipts - Commonwealth contributions |
|
|
||||
Other receipts - State and territory contributions |
|
|
||||
Other receipts - External parties |
|
|
||||
Total increases |
|
|
||||
Available for payments |
|
|
||||
Decreases: |
|
|
||||
Departmental |
|
|
||||
Payments made to employees |
|
|
||||
Payments made to suppliers |
|
|
||||
Total departmental decreases |
|
|
||||
Administered |
|
|
||||
Payments made to suppliers |
|
|
||||
Investments made from the special account (FMA Act section 39) |
|
|
||||
Total administered decreases |
|
|
||||
Total decreases |
|
|
||||
Total balance carried forward to the next period |
|
|
- Appropriation: Financial Management and Accountability Act 1997 section 21
Establishing Instrument: National Blood Authority Act 2003
Purpose: The National Blood Authority was established on 1 July 2003 with the principal role of managing the national blood arrangements, ensuring sufficient supply and to provide a new focus on the safety and quality of blood and blood products. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003, section 40. The NBA's activities contributing to its outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled by the agency in its own right. Administered activities involve the management or oversight by the NBA on behalf of the Government of items controlled or incurred by the Government. - Appropriation: Financial Management and Accountability Act 1997 section 20
Establishing Instrument: Financial Management and Accountability Act 1997 section 20
Purpose: For the receipt of monies and payment of all expenditure related to the management of blood and blood products liability claims against the Australian Red Cross Society (ARCS) in relation to the activities undertaken by the operating division of the ARCS known as the Australian Red Cross Blood Service.
NATIONAL BLOOD AUTHORITY
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the year ended 30 June 2013
Note 26B: Investments made under section 39 of the FMA Act (Recoverable GST exclusive)
2013 | Balance brought forward from previous period $'000 |
Investments made $'000 |
Investment income $'000 |
Transactional charges $'000 |
Investments realised $'000 |
Total balance carried to the next period $'000 |
---|---|---|---|---|---|---|
Financial Management and Accountability (Finance Minister to Chief Executives) Delegation 2009 - Amendment No. 2 2010 | 93,675 | 84,072 | 5,245 | - | 76,631 | 106,361 |
Total | 93,675 | 84,072 | 5,245 | - | 76,631 | 106,361 |
On 28 June 2010, the Finance Minister delegated to NBA investment powers under Section 39 of the FMA Act.
An analysis of the risk profile, desired investment returns and length of investment was independently performed by expert consultants in developing an approved investment strategy. During the year all investments were made in accordance with the approved investment strategy.
2012 | Balance brought forward from previous period $'000 |
Investments made $'000 |
Investment income $'000 |
Transactional charges $'000 |
Investments realised $'000 |
Total balance carried to the next period $'000 |
---|---|---|---|---|---|---|
Financial Management and Accountability (Finance Minister to Chief Executives) Delegation 2009 - Amendment No. 2 2010 | 81,768 | 191,248 | 3,067 | - | 182,408 | 93,675 |
Total | 81,768 | 191,248 | 3,067 | - | 182,408 | 93,675 |
On 28 June 2010, the Finance Minister delegated to NBA investment powers under Section 39 of the FMA Act.
An analysis of the risk profile, desired investment returns and length of investment was independently performed by expert consultants in developing an approved investment strategy. During the year all investments were made in accordance with the approved investment strategy.
NOTE 27: Compensation and Debt Relief
Departmental
No 'Act of Grace' payments were expensed during the reporting period (2012: no expenses).
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: no waivers).
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) during the reporting period (2012: no payments).
No ex gratia payments were provided for during the reporting period (2012: no payments).
No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: no payments).
Administered
No 'Act of Grace' expenses were incurred during the reporting period (2012: no expenses).
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: no waivers).
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) during the reporting period (2012: no payments).
No ex gratia payments were provided for during the reporting period (2012: no payments).
No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: no payments).
NOTE 28: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund
Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance and Deregulation provided information to all agencies in prior years regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.
In the prior year, the NBA developed a plan to review exposure to risks of not complying with statutory conditions on payments from appropriations. The plan involved:
- identifying each special account;
- determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions and
- determining procedures to confirm risk assessments in medium risk cases and to quantify the extent of noncompliance, if any, in higher risk situations;
- obtaining legal advice as appropriate to resolve questions of potential non-compliance; and
- considering legislative or procedural changes to reduce the risk of non-compliance in the future to an acceptably low level.
The NBA identified 2 appropriations involving statutory conditions for payment, comprising:
- 2 special accounts
As at 30 June 2012, this work was completed in respect of all appropriations with statutory conditions for payment.
The work conducted identified no issues of compliance with Section 83.
During 2012/13 additional legal advice was received that indicated there could be breaches of Section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. The NBA will review its processes and controls over payments for these items in 2013/14 to minimise the possibility for future breaches as a result of these payments.
Note 29: Reporting of Outcomes
Note 29A: Net Cost of Outcome Delivery
2013 $'000 |
2012 $'000 |
|
---|---|---|
Departmental | ||
Expenses | 10,949 | 10,380 |
Own-source income | 4,106 | 4,030 |
Administered | ||
Expenses | 1,012,357 | 955,884 |
Own-source income | 383,933 | 394,734 |
Net cost of outcome delivery | 635,267 | 567,500 |
Note 29B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcomes
The NBA has only one Outcome. Refer to the Statement of Comprehensive Income and the Balance Sheet.
Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that were eliminated in calculating the actual Budget Outcome.
Refer to Outcome 1 Resourcing Table in this Annual Report.
Note 29C: Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcomes
The NBA has only one Outcome. Refer to the Administered Schedule of Comprehensive Income and the Administered Schedule of Assets and Liabilities.
Outcome 1 is described in Note 1.1. Net costs shown included intra-goveernment costs that were eliminated in calculating the actual Budget Outcome.
NOTE 30: Net Cash Appropriation Arrangements
2013 $'000 |
2012 $'000 |
|
---|---|---|
Total comprehensive (loss) less depreciation/amortisation expenses previously funded through revenue appropriations 1 | (1,491) | (1,415) |
Plus: depreciation/amortisation expenses previously funded through revenue appropriation | 849 | 751 |
Total comprehensive income (loss) - as per the Statement of Comprehensive Income | (642) | (664) |
1 From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. However, the NBA was granted an exemption until the 2011-12 year.
The NBA now receives a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.