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Private Health Insurance
Administration Council
Health and Ageing portfolio agency
Section 1: Agency overview .................................................................................... 347
Section 2: Agency resources for 2005-06 .............................................................. 348
2.1: Appropriations and other resources .................................................................... 348
2.2: 2005-06 Budget measures .................................................................................. 350
2.3: Other revenue available to be used .................................................................... 350
2.4: Movement of administered funds from 2004-05 to 2005-06 ............................... 350
2.5: Special appropriations ......................................................................................... 351
2.6: Special accounts ................................................................................................. 351
2.7: Administered capital and departmental equity injections and loans ................... 351
Section 3: Agency outcomes .................................................................................. 352
3.1: Summary of outcomes, outputs and administered items .................................... 352
3.2: Outcomes — departmental and administered .................................................... 352
3.3: Outcomes resourcing .......................................................................................... 353
Section 4: Other reporting requirements ............................................................... 357
4.1: Purchaser-provider arrangements ...................................................................... 357
4.2: Cost recovery arrangements ............................................................................... 357
Section 5: Budgeted financial statements ............................................................. 358
5.1: Analysis of budgeted financial statements .......................................................... 358
5.2: Budgeted financial statements tables ................................................................. 359
5.3: Notes to the financial statements ........................................................................ 373
345
346
Section 1—Agency overview
Section 1: Agency overview
The Private Health Insurance Administration Council (PHIAC) is an industry-funded statutory
body established under section 82B of the National Health Act 1953. PHIAC’s objective is to
protect consumers through the monitoring and financial regulation of the private health
insurance industry. PHIAC’s functions are listed at section 82G of the National Health Act
1953.
PHIAC is responsible for regulating the financial performance of the industry, calculating the
reinsurance pool, reviewing pricing applications, and registering health insurance organisations.
PHIAC also provides information relating to membership in private health insurance and the
benefits paid by the industry.
PHIAC maintains a website1 to provide information on the Council’s functions, statistics on the
industry, and information on private health insurance including approved gap cover products.
The Private Health Insurance (Council Administration Levy) Act 2003 allows the
Commonwealth to impose an administration levy on registered health benefits organisations to
meet the general operating costs of the PHIAC.
Table 1.1: Agency outcomes and output groups
Outcome Output groups
The prudential safety of registered private 1. Information to Government and other
health insurance funds, the best interests of stakeholders relevant to private health
members of those funds, and a competitive insurance.
level of private health insurance premiums,
are efficiently regulated to support a viable 2. Regulatory activity.
industry.
1 PHIAC’s website can be found at <http://www.phiac.gov.au/>.
347
Agency budget statements—PHIAC
Section 2: Agency resources for 2005-06
2.1: APPROPRIATIONS AND OTHER RESOURCES
Table 2.1 shows the total resources from all origins for 2005-06, including appropriations. The
table summarises how revenue will be applied by outcome, administered and departmental
classification.
The total appropriation for the Private Health Insurance Administration Council in the 2005-06
Budget is $184.44 million. This is made up of $4.44 million departmental appropriation and
$180 million administered appropriation.
348
Section 2—Agency resources for 2005-06
1
Table 2.1: Appropriations and other revenue 2005-06
Appropriations Revenue from Total
other sources 5 resources 7
$'000 $'000 $'000 $'000 %6 $'000 %6 $'000
Bill Bill Special Total
No. 1 No. 22 approp3 approp4
Private Health
Insurance
Adm inistration
Council (PHIAC)
Administered - - 180,000 180,000 100% 122 0% 180,122
Departmental - - 4,440 4,440 97% 142 3% 4,582
Total PHIAC - - 184,440 184,440 100% 264 0% 184,704
1 This table has been redesigned to correspond w ith Budget Paper No. 4 ‘Agency Resourcing’. It now
includes (w here appropriate) administered revenue from other sources.
2 Under the appropriation structure, Bill No. 2 includes Specific Purpose Payments (SPPs), new agency
Outcomes (NAOs), administered capital and departmental capital via departmental injections and loans.
3 Estimated expenses from individual Special Appropriations are show n at Section 3, Tables 3.1, etc.
4 Total appropriations = Bill No. 1 + Bill No. 2 + Special appropriations.
5 Revenue from other sources includes FMA s.31 revenues, CAC body revenues that are available to be
expensed, special accounts (non-appropriation revenues) and resources received free of charge.
6 Percentage figures indicate the percentage contribution of Revenue from Government (Departmental
Appropriations) to the total price of outputs, by outcome, and the percentage contribution of Revenue
from other sources (Departmental) to the total price of outputs, by outcome.
7 Total resources = Total appropriations + Revenue from other sources.
Note: Refer to Budgeted statement of financial performance for application of agency revenue.
349
Agency budget statements—PHIAC
2.2: 2005-06 BUDGET MEASURES
Section 2.2 is not applicable to PHIAC.
2.3: OTHER REVENUE AVAILABLE TO BE USED
Table 2.3 provides details of other revenue available to be used and includes FMA s.31 revenue,
CAC body revenue available to be spent, special accounts (non-appropriation revenue) and
resources received free of charge.
1
Table 2.3: Other revenue available to be used
Revenue from Budget
other sources estimate
2004-05 2005-06
$'000 $'000
Departm ental other revenue
Good and Services 208 94
Interest 38 48
Total departm ental other revenue available to be used 246 142
Adm inistered other revenue
Interest 122 122
Total adm inistered other revenue available to be used 122 122
1
. This table replaces the former table ‘Receipts from independent sources’. It represents own source
revenue available for spending on departmental purposes.
2.4: MOVEMENT OF ADMINISTERED FUNDS FROM 2004-05 TO 2005-06
There are no movements of administered funds from 2004-05 to 2005-06.
350
Section 2—Agency resources for 2005-06
2.5: SPECIAL APPROPRIATIONS
Table 2.5: Estimates of expenses from special appropriations
Estimated Budget
expenses estimate
Outcome Note 2004-05 2005-06
$'000 $'000 $'000 $'000
Estim ated expenses
Private Health Insurance (Reinsurance Trust
Fund Levy) Act 2003 - - 180,000 180,000
Private Health Insurance (Council Administration
Levy) Act 2003 - - 4,190 4,435
Private Health Insurance (ACAC Review
Levy) Act 2003 - - 24 5
Total estim ate expenses - - 184,214 184,440
The Administered appropriation is established under the Private Health Insurance (Reinsurance
Trust Fund Levy) Act 2003.
The Departmental appropriation is established under the Private Health Insurance (Council
Administration Levy) Act 2003 ($4.435 million) and the Private Health Insurance (ACAC
Review Levy) Act 2003 ($0.005 million).
2.6: SPECIAL ACCOUNTS
2.7: ADMINISTERED CAPITAL AND DEPARTMENTAL EQUITY INJECTIONS
AND LOANS
Section 2.6 and 2.7 are not applicable to PHIAC.
351
Agency budget statements—PHIAC
Section 3: Agency outcomes
This section explains how the resources identified in Section 2 will be used to deliver outputs
and administered items to contribute to the Private Health Insurance Administration Council’s
outcome.
3.1: SUMMARY OF OUTCOMES, OUTPUTS AND ADMINISTERED ITEMS
PHIAC works to achieving a single outcome specified by government. This section provides a
summary of the agency’s activities for 2005-06, followed by related performance information.
Figure 4: Outcomes and output groups and administered items
Private Health Insurance Administration Council
Chief Executive Officer—Ms Gayle Ginnane
Outcome—The prudential safety of registered private health insurance funds, the best
interests of members of those funds, and a competitive level of private health insurance
premiums, are efficiently regulated to support a viable industry
Total price of outputs $4.582m
Total departmental outcomes appropriation $4.440m
Total administered expense $180.122m
Output group 1 Total price $1.924m
Information to Government and other Departmental appropriations $1.864m
stakeholders relevant to private health insurance
Output group 2 Total price $2.658m
Regulatory activity Departmental appropriations $2.576m
PHIAC reports under its own outcome in the 2005-06 Budget—‘The prudential safety of
registered private health insurance funds, the best interests of members of those funds, and a
competitive level of private health insurance premiums, are efficiently regulated to support a
viable industry’.
Previously, PHIAC reported under the outcome ‘Choice through private health’.
3.2: OUTCOMES — DEPARTMENTAL AND ADMINISTERED
Departmental appropriations
PHIAC has total departmental appropriations of $4.44 million in 2005-06.
352
Section 3—Agency outcomes
Administered appropriations by outcome
PHIAC has total administered appropriations of $180.0 million in 2005-06.
3.3: OUTCOMES RESOURCING
Outcome summary—the year ahead
During 2005-06, PHIAC will continue to focus closely on the industry’s performance against
solvency and capital adequacy standards and encourage improvement in corporate governance
arrangements in line with best practice. PHIAC aims to support the industry through a series of
director’s education programs to be run throughout 2005.
PHIAC’s strategic objectives are to:
ensure that health insurance regulation in Australia is best practice;
develop and articulate PHIAC’s approach to regulation; and
strengthen industry governance.
Building on the health fund reviews PHIAC has already undertaken, the objective is to further
increase review capabilities and to improve PHIAC’s ability to monitor the private health
insurance industry’s activities and developments.
Outcome resourcing
Table 3.1 shows how the 2005-06 Budget appropriations translate to total resourcing for
PHIAC, including administered expenses, revenue from government (appropriation), revenue
from other sources (Departmental) and the total price of outputs.
353
Agency budget statements—PHIAC
Table 3.1: Total resources for the Private Health Insurance Administration
Council
Estimated Budget
actual estimate
2004-05 2005-06
$'000 $'000
Adm inistered appropriations
Private Health Insurance (Reinsurance Trust Fund Levy) Act
2003 ¹ 180,000 180,000
Total Special Appropriation 180,000 180,000
Total adm inistered appropriations 180,000 180,000
Departm ental revenue
2
Total revenue from Government (appropriations) 4,214 4,440
Total other resources available to be used 246 142
Total Price of Departm ental Outputs 4,460 4,582
(Total revenue from Government and from other sources)
Departm ental revenue by output group
Output Group 1 - Information to Government and other
stakeholders relevant to private health insurance 1,739 1,924
Output Group 2 - Regulatory activity 2,721 2,658
Total Price of Departm ental Outputs 4,460 4,582
(Total revenue from Government and from other sources)
Total estim ated resourcing for Outcom e 1 184,460 184,582
(Total price of outputs and administered appropriations) 184,460 184,582
2004-05 2005-06
Average staffing level (num ber) 13 15
1. This money is collected from health funds under the Private Health Insurance (Reinsurance
Levy) Act 2003 and then redistributed according to the reinsurance arrangements.
2. This money is collected from health funds under the Private Health Insurance (Council
Administration Levy) Act 2003 and Private Health Insurance (ACAC Review Levy) Act 2003.
354
Section 3—Agency outcomes
Performance information for PHIAC
Table 3.2: Performance information for PHIAC
Administered funding—Health Benefits Reinsurance Trust Fund
Maintenance of community rating in Quality: Accurate calculation of reinsurance
private health insurance through the payments into and from the Trust Fund.
administration of the Health Benefits
Reinsurance Trust Fund. Quality: Accurate reporting of reinsurance in the
annual report of Operations of the Registered
Health Benefits Organisations.
Quality: Timely collection and payment of
reinsurance to relevant health funds.
Price: $180.000m
Output group 1—Information to Government and other stakeholders relevant
to private health insurance
Including: Quality: Data is collected and analysed within four
collection and provision of information weeks of industry reporting deadline.
regarding registered health benefits
organisations relating to membership and Quality: Membership statistics updated on website
reinsurance benefits by PHIAC; upon public release.
collection and provision of information
from registered health insurance Quality: Relevant amendments to legislation
organisations relating to the financial reflected on website following Royal Assent.
performance by the industry;
analysis and provision of comment to the Quality: PHIAC prints and distributes the
Government on the financial impact of following information on a quarterly basis:
organisations’ pricing; membership statistics (also available on the
web-based public information services PHIAC website);
provided by PHIAC providing consumer industry statistics on a State basis (PHIAC A
information on private health insurance; Report, also available on the PHIAC website);
collection and provision of information gap cover statistics;
relating to medical benefits and gap cover time series of industry statistics; and
monitoring out-of-pocket expenses for industry statistics on a Fund basis (PHIAC B
people using private health insurance; Report available only to registered health
provision of annual report on the benefits organisations).
operations of PHIAC as required under
section 9 of the Commonwealth Authorities Quality: PHIAC prints and distributes the
and Companies Act 1997; and following information on an annual basis:
provision of annual report on the private annual report on PHIAC; and
health insurance industry as required under annual report on Operations of Registered
section 82PA of the National Health Act Health Benefits Organisations.
1953.
Quality: PHIAC updates its website regularly to
reflect current consumer information on private
health insurance.
Price: $1.924m
355
Agency budget statements—PHIAC
Output group 2—Regulatory activity
Including: Quality: High level of customer satisfaction with
monitoring of the financial status of the services provided.
private health insurance industry;
review and amendment of a Solvency Quality: Monitoring of the private health insurance
Standard and Capital Adequacy Standard industry through quarterly reporting from the
for Health Benefits Organisations; industry and on a more frequent basis where
review of pricing applications; necessary.
registration of Health Benefits
Organisations; and Quality: Collection of financial returns from each
calculation of reinsurance payments. registered health organisation on a quarterly basis.
Financial statistics provided to organisations on a
quarterly basis.
Quality: Collection and review of pricing
applications from registered organisations on an
annual basis.
Quality: Registration Committee convened upon
receipt of completed registration application.
Quality: List of Registered Health Benefits
Organisations gazetted annually.
Quality: Accurate calculation of reinsurance.
Price:$2.658m
Evaluations
Performance Assessment
The Australian National Audit Office (ANAO) commenced preliminary work on its
performance audit of PHIAC in February 2005. The scope, methodology and potential impacts
were not yet determined at the time of writing this report.
It is expected the performance audit will be completed in early 2006, at which time the ANAO
will present its findings to the Chief Executive Officer and PHIAC Board.
356
Section 4—Other reporting requirements
Section 4: Other reporting requirements
4.1: PURCHASER-PROVIDER ARRANGEMENTS
PHIAC has no purchaser-provider arrangements.
4.2: COST RECOVERY ARRANGEMENTS
PHIAC has no projects in the 2005-06 Budget which require on-going cost recovery
arrangements.
357
Agency budget statements—PHIAC
Section 5: Budgeted financial statements
5.1: ANALYSIS OF BUDGETED FINANCIAL STATEMENTS
The expected changes in 2005-06 when compared with the forecast results for 2004-05 are
explained below:
Statement of Financial Performance
Revenue – Goods and services
The figure for 2004-05 includes $118,000 for inspection costs recovered from a registered
organisation under section 82G(1)(k) of the National Health Act 1953.
Expense – Employees
The increase in Employee expense in 2005-06 is largely due to an increase in PHIAC staff
from 2005.
Statement of Financial Position
Liabilities – Leases
PHIAC will be leasing new computer equipment in May of 2005 when current leases
expire. Computer equipment leases are for 3 years, hence the increase in the liability again
in 2007-08.
358
Section 5—Budgeted financial statements
5.2: BUDGETED FINANCIAL STATEMENTS TABLES
Table 5.1: Budgeted departmental statement of financial performance
for the period ended 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
REVENUE
Revenues from ordinary activities
Appropriation revenues 4,214 4,440 4,701 4,971 5,245
Other revenues from related entities - - - - -
Goods and services 203 90 90 90 90
Interest 38 48 48 48 48
Dividends - - - - -
Revenue from sales of assets - - - - -
Reversals of previous asset
w rite-dow ns - - - - -
Net foreign exchange gains - - - - -
Rents - - - - -
Royalties - - - - -
Correction of fundamental error - - - - -
Other 5 4 4 4 4
Revenues from ordinary activities 4,460 4,582 4,843 5,113 5,387
EXPENSE
Expenses from ordinary activities
(excluding borrow ing costs
expense)
Employees 1,653 2,071 2,151 2,244 2,332
Suppliers 2,583 2,424 2,329 2,504 2,512
Grants
Subsidies
Depreciation and amortisation 78 87 88 90 93
Write-dow n of assets and
impairment of assets - - - - -
Value of assets sold - - - - -
Net foreign exchange losses - - - - -
Correction of fundamental error - - - - -
Other - - - - -
Expenses from ordinary activities 4,314 4,582 4,568 4,838 4,937
(excluding borrowing costs
expense)
Borrow ing costs expense - - - - -
Share of net profits or (losses) of
associates and joint ventures
accounted for using the equity
method - - - - -
Correction of fundamental error - - - - -
359
Agency budget statements—PHIAC
Table 5.1: Budgeted departmental statement of financial performance (cont)
for the period ended 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
Operating surplus or (deficit)
from ordinary activities 146 - 275 275 450
Gain or (loss) on extraordinary items - - - - -
Correction of fundamental error - - - - -
Net surplus or (deficit) 146 - 275 275 450
Outside equity interests in net
surplus or (deficit) - - - - -
Net surplus or deficit attributable
to the Australian Governm ent 146 - 275 275 450
360
Section 5—Budgeted financial statements
Table 5.2: Budgeted departmental statement of financial position
as at 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
ASSETS
Financial assets
Cash 1,477 1,628 2,068 2,509 3,161
Receivables - - - - -
Investments accounted for under
the equity method - - - - -
Investments (s.39 FMA Act;
s.18 CAC Act; s.19 CAC Act) - - - - -
Other investments 5 5 5 5 5
Accrued revenues - - - - -
Other financial assets - - - - -
Total financial assets 1,482 1,633 2,073 2,514 3,166
Non-financial assets
Land and buildings - - - - -
Infrastructure, plant and equipment 275 206 180 225 150
Investment properties - - - - -
Heritage and cultural assets - - - - -
Inventories - - - - -
Intangibles - - - - -
Other non-financial assets - - - - -
Total non-financial assets 275 206 180 225 150
Total assets 1,757 1,839 2,253 2,739 3,316
LIABILITIES
Interest bearing liabilities
Loans - - - - -
Leases 133 80 78 143 90
Deposits - - - - -
Overdraft - - - - -
Other interest bearing liabilities - - - - -
Total interest bearing liabilities 133 80 78 143 90
Provisions
Employees 551 677 811 956 1,107
Other provisions - - - - -
Total provisions 551 677 811 956 1,107
Payables
Suppliers 101 110 117 118 147
Grants - - - - -
Dividends - - - - -
Borrow ing costs - - - - -
Other payables - - - - -
Total payables 101 110 117 118 147
Total liabilities 785 867 1,006 1,217 1,344
361
Agency budget statements—PHIAC
Table 5.2: Budgeted departmental statement of financial position (cont)
as at 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
EQUITY*
Parent entity interest
Contributed equity - - - - -
Reserves - - - - -
Statutory funds - - - - -
Retained surpluses or
accumulated deficits - - - - -
Total parent entity interest - - - - -
Outside equity interest
Contributed equity - - - - -
Reserves 41 41 41 41 41
Retained surpluses or
accumulated deficits 931 931 1,206 1,481 1,931
Total outside equity interest 972 972 1,247 1,522 1,972
Total equity 972 972 1,247 1,522 1,972
Current assets 1,477 1,628 2,068 2,509 3,161
Non-current assets 280 211 185 230 155
Current liabilities 514 602 706 817 949
Non-current liabilities 271 265 300 400 395
* ‘Equity’ is the residual interest in assets after deduction of liabilities.
362
Section 5—Budgeted financial statements
Table 5.3: Budgeted departmental statement of cash flows for the period ended 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
OPERATING ACTIVITIES
Cash received
Goods and services 203 90 90 90 90
Appropriations 4,214 4,440 4,701 4,971 5,245
Interest 38 48 48 48 48
Dividends - - - - -
Other 5 4 4 4 4
Extraordinary items - - - - -
Total cash received 4,460 4,582 4,843 5,113 5,387
Cash used
Employees 1,524 1,945 2,017 2,099 2,181
Suppliers 2,625 2,468 2,373 2,553 2,536
Grants - - - - -
Borrow ing costs - - - - -
Other - - - - -
Extraordinary items - - - - -
Total cash used 4,149 4,413 4,390 4,652 4,717
Net cash from or (used by)
operating activities 311 169 453 461 670
INVESTING ACTIVITIES
Cash received
Purchase of property, plant,
equipment and intangibles - - - - -
Proceeds from sales of financial
instruments - - - - -
Bills of exchange and promissory notes - - - - -
Repayments of loans made - - - - -
Investments (s.39 FMA Act;
s.18 CAC Act; s.19 CAC Act) - - - - -
Other - - - - -
Extraordinary items - - - - -
Total cash received - - - - -
Cash used
Purchase of property, plant
and equipment 73 18 13 20 18
Purchase of financial instruments - - - - -
Bills of exchange and promissory notes - - - - -
Loans made - - - - -
Investments (s.39 FMA Act;
s.18 CAC Act; s.19 CAC Act) - - - - -
Other - - - - -
Extraordinary items - - - - -
Total cash used 73 18 13 20 18
Net cash from or (used by)
investing activities (73) (18) (13) (20) (18)
363
Agency budget statements—PHIAC
Table 5.3: Budgeted departmental statement of cash flows (cont)
for the period ended 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity - - - - -
Proceeds from issuing financial
instruments - - - - -
Proceeds from loans - - - - -
Other - - - - -
Extraordinary items - - - - -
Total cash received - - - - -
Cash used
Repayments of debt - - - - -
Capital use charge paid - - - - -
Dividends paid - - - - -
Other - - - - -
Extraordinary items - - - - -
Total cash used - - - - -
Net cash from /(used by) financing
activities - - - - -
Net increase or (decrease)
in cash held 238 151 440 441 652
Cash at the beginning of
the reporting period 1,239 1,477 1,628 2,068 2,509
Effect of exchange rate movements
on cash at the beginning of
reporting period - - - - -
Cash at the end of the
reporting period 1,477 1,628 2,068 2,509 3,161
364
Section 5—Budgeted financial statements
Table 5.4: Departmental capital budget statement
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
CAPITAL APPROPRIATIONS
Total equity injections - - - - -
Total loans - - - - -
Total capital appropriations - - - - -
Represented by:
Purchase of non-financial assets - - - - -
Other - - - - -
Total represented by - - - - -
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - - - - -
Funded internally by
Departmental resources 73 18 13 20 18
Total 73 18 13 20 18
365
Agency budget statements—PHIAC
Table 5.5: Departmental property, plant, equipment and intangibles — summary
of movement (Budget year 2005-06)
Land Buildings Other Computer Total
infrastructure softw are
plant and
equipment
$'000 $'000 $'000 $'000 $'000
As at 1 July 2005
Gross book value - - 491 - 491
Accumulated depreciation - - 216 - 216
Opening net book value - - 275 - 275
Additions:
by purchase - - 18 - 18
by finance lease - - - - -
from acquisitions of entities or
operations (including restructuring) - - - - -
Net revaluation increment/decrement - - - - -
Reclassifications - - - - -
Depreciation/amortisation expense - - 87 - 87
Recoverable amount w rite-dow ns - - - - -
Other movements - - - - -
Disposals:
from disposal of entities or
operations (including restructuring) - - - - -
other disposals - - - - -
As at 30 June 2006
Gross book value - - 509 - 509
Accumulated depreciation - - 303 - 303
Closing net book value - - 206 - 206
366
Section 5—Budgeted financial statements
Table 5.6: Schedule of budgeted revenues and expenses administered on behalf
of Government for the period ended 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimates estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
REVENUES ADMINISTERED ON
BEHALF OF GOVERNMENT
Taxation
Income tax - - - - -
Indirect tax - - - - -
Other taxes, fees and fines - - - - -
Total taxation - - - - -
Non-taxation (revenues from
Governm ent)
Goods and services - - - - -
Interest 122 122 122 122 122
Dividends - - - - -
Net foreign exchange gains - - - - -
Revenues from sale of assets - - - - -
Other sources of non tax revenue -
related entities - - - - -
Other sources of non tax revenue -
external entities 180,000 180,000 180,000 180,000 180,000
Rents - - - - -
Royalties - - - - -
Correction of fundamental error - - - - -
Total non-taxation 180,122 180,122 180,122 180,122 180,122
Total revenues adm inistered
on behalf of Governm ent 180,122 180,122 180,122 180,122 180,122
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Grants - - - - -
Subsidies - - - - -
Personal benefits - - - - -
Employees - - - - -
Suppliers - - - - -
Depreciation and amortisation - - - - -
Write dow n and impairment of assets - - - - -
Value of assets sold - - - - -
Transfer to Related Entities 180,000 180,000 180,000 180,000 180,000
Interest - - - - -
Correction of fundamental error - - - - -
Other 180,122 180,122 180,122 180,122 180,122
Extraordinary items - - - - -
Total expenses adm inistered
on behalf of Governm ent 360,122 360,122 360,122 360,122 360,122
367
Agency budget statements—PHIAC
Table 5.7: Schedule of budgeted assets and liabilities administered on behalf of
Government as at 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
ASSETS ADMINISTERED ON
BEHALF OF GOVERNMENT
Financial assets
Cash 52 52 52 52 52
Receivables - - - - -
Investments under the equity method - - - - -
Investments (s.39 FMA Act) - - - - -
Accrued revenues - - - - -
Other financial assets - - - - -
Total financial assets 52 52 52 52 52
Non-financial assets
Land and buildings - - - - -
Infrastructure, plant and equipment - - - - -
Investment properties - - - - -
Inventories - - - - -
Intangibles - - - - -
Other non-financial assets - - - - -
Total non-financial assets - - - - -
Total assets adm inistered
on behalf of Governm ent 52 52 52 52 52
LIABILITIES ADMINISTERED ON
BEHALF OF GOVERNMENT
Interest bearing liabilities
Australian Government securities - - - - -
Loans - - - - -
Leases - - - - -
Deposits - - - - -
Overdrafts - - - - -
Other - - - - -
Total interest bearing liabilities - - - - -
Provisions
Employees - - - - -
Taxation refunds provided - - - - -
Australian currency on issue - - - - -
Other provisions - - - - -
Total provisions - - - - -
Payables
Suppliers - - - - -
Grants and subsidies - - - - -
Personal benefits payable - - - - -
Taxation refunds due - - - - -
Other payables 5 5 5 5 5
Total payables 5 5 5 5 5
Total liabilities adm inistered
on behalf of Governm ent 5 5 5 5 5
368
Section 5—Budgeted financial statements
Table 5.8: Schedule of budgeted administered cash flows
for the period ended 30 June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
OPERATING ACTIVITIES
Cash received
Income tax - - - - -
Indirect tax - - - - -
Other taxes, fees and fines - - - - -
Sales of goods - - - - -
Rendering of services - - - - -
Interest 122 122 122 122 122
Dividends - - - - -
Other 180,000 180,000 180,000 180,000 180,000
Total cash received 180,122 180,122 180,122 180,122 180,122
Cash used
Borrow ing costs - - - - -
Employees - - - - -
Grant payments - - - - -
Interest paid - - - - -
Subsidies paid - - - - -
Personal benefits - - - - -
Suppliers - - - - -
Other 180,122 180,122 180,122 180,122 180,122
Total cash used 180,122 180,122 180,122 180,122 180,122
Net cash from /(used by)
operating activities - - - - -
INVESTING ACTIVITIES
Cash received
Proceeds from sales of
property, plant and equipment
and intangibles - - - - -
Proceeds from sales of
equity instruments - - - - -
Proceeds from sales of investments - - - - -
Repayments of advances - - - - -
Cash from Official Public Account - - - - -
Transfers from other entities - - - - -
Investments (s.39 FMA Act,
s.18 CAC Act, s.19 CAC Act) - - - - -
Other - - - - -
Total cash received - - - - -
369
Agency budget statements—PHIAC
Table 5.8: Schedule of budgeted administered cash flows (cont) for the period ended 30
June
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
Cash used
Purchase of property, plant
and equipment and intangibles - - - - -
Purchase of equity instruments - - - - -
Advances and loans made - - - - -
Cash to Official Public Account
Transfers to other entities - - - - -
Investments (s.39 FMA Act,
s.18 CAC Act, s.19 CAC Act) - - - - -
Other - - - - -
Total cash used - - - - -
Net cash from /(used by)
investing activities - - - - -
FINANCING ACTIVITIES
Cash received
Proceeds from borrow ing - - - - -
Cash from Official Public Account - - - - -
Other - - - - -
Total cash received - - - - -
Cash used
Net repayment of borrow ings - - - - -
Dividends paid - - - - -
Cash to Official Public Account - - - - -
Other - - - - -
Total cash used - - - - -
Net cash from /(used by)
financing activities - - - - -
Net increase or (decrease) in
cash held - - - - -
Cash at beginning of reporting period 52 52 52 52 52
Cash from Official Public Account for
Appropriations 180,000 180,000 180,000 180,000 180,000
Special accounts - - - - -
Transfers from other entities
(Finance - Whole of Government) - - - - -
Cash to Official Public Account for
Appropriations (180,000) (180,000) (180,000) (180,000) (180,000)
Special accounts - - - - -
Transfers from other entities
(Finance - Whole of Government) - - - - -
Effect of exchange rate
movements on cash at
beginning of reporting period - - - - -
Cash at end of reporting period 52 52 52 52 52
370
Section 5—Budgeted financial statements
Table 5.9: Schedule of administered capital budget
Estimated Budget Forw ard Forw ard Forw ard
actual estimate estimate estimate estimate
2004-05 2005-06 2006-07 2007-08 2008-09
$'000 $'000 $'000 $'000 $'000
CAPITAL APPROPRIATIONS
Administered capital - - - - -
Special appropriations - - - - -
Total capital appropriations - - - - -
Represented by:
Purchase of non-financial assets - - - - -
Other - - - - -
Total represented by - - - - -
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation - - - - -
Funded internally by Departmental
resources - - - - -
371
Agency budget statements—PHIAC
Table 5.10: Schedule of property, plant, equipment and intangibles — summary
of movement (Budget Year 2005-06)
Land Buildings Other Computer Total
infrastructure softw are
plant and
equipment
$'000 $'000 $'000 $'000 $'000
As at 1 July 2005
Gross book value - - - - -
Accumulated depreciation - - - - -
Opening net book value - - - - -
Additions:
by purchase - - - - -
by finance lease - - - - -
from acquisitions of entities or
operations (including restructuring) - - - - -
Net revaluation increment/decrement - - - - -
Reclassifications - - - - -
Depreciation/amortisation expense - - - - -
Recoverable amount w rite-dow ns - - - - -
Other movements - - - - -
Disposals:
from disposal of entities or -
operations (including restructuring) - - - - -
other disposals - - - - -
As at 30 June 2006
Gross book value - - - - -
Accumulated depreciation - - - - -
Closing net book value - - - - -
372
Section 5—Budgeted financial statements
5.3: NOTES TO THE FINANCIAL STATEMENTS
The budgeted financial statements for PHIAC are prepared for the budget year, previous year
and three forward years. The accounting policies used in preparing these financial statements
are consistent with those used in the 2004-05 Annual Report.
Budgeted Statement of Financial Performance
This statement provides a picture of the expected financial results for the agency by identifying
full accrual expenses and revenues. This highlights whether the agency is operating at a
sustainable level.
Budgeted Statement of Financial Position
This statement shows the financial position of the agency. It enables decision makers to track
the management of the agency’s assets and liabilities.
Budgeted Statement of Cash Flows
The budgeted cash flows statement provides important information on the extent and nature of
cash flows by categorising them into expected cash flows from operating activities, investing
activities and financing activities.
Capital Budget Statement
The capital budget statement shows all planned capital expenditure on non financial assets,
whether funded through capital appropriations or from internal sources.
Non financial Assets – Summary of Movement
This table shows budgeted acquisitions and disposals of non financial assets during the budget
year.
373
Agency budget statements—PHIAC
374
