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Note 4. Assets and Liabilities Administered on Behalf of the Government

This section analyses assets used to conduct its operations and the operating liabilities incurred as a result DVA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

Note 4.1. Administered—Financial Assets

  2017 2016
  $'m $'m
Note 4.1A: Cash and Cash Equivalents    
Cash on hand or on deposit 56 38
Cash in special accounts 21 9
Total cash and cash equivalents 77 47
Note 4.1B: Receivables    
Pensions1 50 54
Statutory receivables2 4 5
Other receivables 29 55
Total  receivables (gross) 83 114
     
Less Impairment allowance    
Pensions (4) (3)
Total impairment allowance (4) (3)
Total receivables (net) 79 111

1DVA recovers overpayments of pensions in accordance with relevant legislative requirements.

2Includes amounts owing from June 2017 Business Activity Statement and GST amounts on accrued expenses as at 30 June 2017.

Reconciliation of the Impairment Allowance

Movements in relation to 2017
  Pensions Other receivables Total
  $'m $'m $'m
As at 1 July 2016 3 - 3
Increase recognised in net cost of services 1 - 1
Total as at 30 June 2017 4 - 4
Movements in relation to 2016
  Pensions Other receivables Total
  $'m $'m $'m
As at 1 July 2015 4 - 4
Amounts written off (1) - (1)
Total as at 30 June 2016 3 - 3
Note 4.1C: Equity Accounted Investments
  2017 2016
  $'m $'m
Investment in Commonwealth authorities    
Australian War Memorial1 1,430 1,319
Total investments accounted for using the equity method 1,430 1,319

1The value shown for the Australian War Memorial is at fair value and is based upon the audited net asset position as at 30 June 2017.

The Commonwealth owns 100% of the investment in the Australian War Memorial whose principal activity is to commemorate the sacrifice of those Australians who have died in war. It does this by assisting Australians to remember, interpret and understand the Australian experience of war and its enduring impact on Australian society.

Note 4.2. Administered—Non-Financial Assets

Note 4.2A: Reconciliation of the Opening and Closing Balances of Buildings
Reconciliation of the opening and closing balances of buildings for 2017
  Buildings Total
  $'m $'m
As at 1 July 2016    
Gross book value 5 5
Accumulated depreciation and impairment - -
Total as at 1 July 2016 5 5
     
Additions    
   Purchase or internally developed - -
Total as at 30 June 2017 5 5
Total as at 30 June 2017 represented by    
Gross value    
   Fair value - -
   Work in progress 5 5
Accumulated depreciation and impairment - -
Total as at 30 June 20171 5 5

1The $5 million administered non-financial asset is related to the initial cost of the Sir John Monash Centre, appropriated to DVA in 2014–15. In accordance with the Government decision, Department of Defence provides capital funding for the construction of the Sir John Monash Centre over financial years from 2015–16 to 2018–19. Once the project is completed, the total asset balance of approximately $88.5 million will be transferred to DVA's ledger.

The fair value measurement of the financial and non-financial assets are disclosed in the above notes.

Note 4.3. Administered—Payables

  2017 2016
  $'m $'m
Note 4.3A: Personal Benefits Payables    
Direct    
Pension accruals 173 150
Total personal benefits payables 173 150
  2017 2016
  $'m $'m
Note 4.3B: Health Care Payables    
Indirect    
Health services 47 60
Total health care payables 47 60

Note 4.4. Administered—Provisions

  2017 2016
  $'m $'m
Note 4.4A: Personal Benefit Provisions    
Military compensation 7,099 6,737
Total personal benefit provisions 7,099 6,737
     
Personal benefit provisions expected to be settled    
   No more than 12 months 496 412
   More than 12 months 6,603 6,325
Total personal benefit provisions 7,099 6,737
     
Note 4.4B: Health Care Provisions    
Military compensation 3,855 3,191
Outstanding Treatment Accounts System (TAS) claims 160 161
Repatriation Pharmaceutical Benefits Scheme (RPBS) 16 24
Hospitals 59 55
Total health care provisions 4,090 3,431
     
Total health care provisions expected to be settled    
   No more than 12 months 354 338
   More than 12 months 3,736 3,093
Total personal benefit provisions 4,090 3,431

 

Personal benefits Health care
Military
compensation
Military
compensation
Outstanding
TAS claims
RPBS Hospitals
  $'m $'m $'m $'m $'m
As at 1 July 2016 6,737 3,191 161 24 55
Actuarial changes in provisions 557 903 - - -
Increase in provisions 681 303 160 16 59
Claims paid during the year (498) (111) (161) (24) (55)
Unwinding of discount 112 63 - - -
Change in interest rate (489) (494) - - -
as at 30 June 2017 7,099 3,855 160 16 59

 

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