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Note 3. Financial Position

This section analyses the DVA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Note 3.1. Financial Assets

  2017 2016
  $'000 $'000
Note 3.1A: Cash and Cash Equivalents    
Cash at bank 3,771 5,540
Cash at bank (DSHIS special accounts) 2,642 2,171
Total cash and cash equivalents 6,413 7,711
     
Note 3.1B: Trade and Other Receivables    
Goods and services receivables 840 1,335
Total goods and services receivables 840 1,335
     
Appropriations receivables    
Appropriations receivable 42,055 22,121
Total appropriations receivables 42,055 22,121
     
Other receivables    
Statutory receivables1 1,687 601
Salary recoveries 281 265
Other 633 449
Total other receivables 2,601 1,315
Total trade and other receivables (net) 45,496 24,771

Credit terms for goods and services were within 30 days (2016: 30 days).

1Includes amounts owing from June 2017 Business Activity Statement and GST amounts on accrued expenses as at 30 June 2017.

  2017 2016
  $'000 $'000
Note 3.1C: Premiums and Recoveries Receivable    
Premiums receivable 13,440 12,662
Reinsurance and other recoveries receivable 2,050 571
Total premiums and recoveries receivable 15,490 13,233
Total premiums and recoveries receivable (net) 15,490 13,233

No indicators of impairment were found for premiums and recoveries receivable. Receivables past 90 days are not considered impaired as premiums are cancelled after this period if not paid.

  2017 2016
  $'000 $'000
Note 3.1D: Investments    
Deposits 62,169 58,655
Total investments 62,169 58,655

Note 3.2. Non-Financial Assets

Note 3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles for 2017
  Land Buildings—leasehold improvements Other property, plant & equipment Computer software internally developed Computer software purchased Total
  $'000 $'000 $'000 $'000 $'000 $'000
As at 1 July 2016            
Gross book value - 17,047 3,325 175,336 13,787 209,495
Accumulated depreciation/amortisation and impairment - - (1,663) (103,388) (11,955) (117,006)
Total as at 1 July 2016 - 17,047 1,662 71,948 1,832 92,489
Additions            
   Purchase or internally developed - 825 318 15,422 - 16,565
Revaluations recognised in net cost of services - 2,004 - - - 2,004
Revaluation increments - 121 - - - 121
Impairments recognised in net cost of services - - - (96) - (96)
Depreciation/amortisation - (5,123) (903) (18,047) - (24,073)
Other Movements - (1) 1 493 (491) 2
Disposals            
   Other - - (2) - - (2)
Total as at 30 June 2017 - 14,873 1,076 69,720 1,341 87,010
             
Total as at 30 June 2017 represented by            
Gross book value            
   Fair value - 15,054 3,602 - - 18,656
   Work in progress - 81 - - - 81
   Internally developed—in progress - - - 13,143 - 13,143
   Internally developed—in use - - - 177,523 - 177,523
   Purchased software - - - - 12,900 12,900
Accumulated depreciation/amortisation and impairment - (262) (2,526) (120,946) (11,559) (135,293)
Total as at 30 June 2017 - 14,873 1,076 69,720 1,341 87,010
  2017 2016
  $'000 $'000
Note 3.2B: Other Non-Financial Assets    
Prepayments    
Information technology 3,237 1,600
Fire brigade and emergency services contributions 344 965
Rental agreements 1,221 857
Health care processing 648 596
Other prepayments 556 193
Total other non-financial assets 6,006 4,211

No indicators of impairment were found for other non-financial assets.

Note 3.3. Payables

  2017 2016
  $'000 $'000
Note 3.3A: Suppliers    
Trade creditors and accruals 20,297 14,132
Lease Incentive 7,713 9,325
Total suppliers 28,010 23,457

  Settlement is usually made within 30 days.

  2017 2016
  $'000 $'000
Note 3.3B: Unearned Premiums    
Unearned premiums 21,315 21,037
Premium received in advance 455 521
Insurance agency revenue received in advance 69 61
Total unearned premiums 21,839 21,619
  2017 2016
  $'000 $'000
Note 3.3C: Other Payables    
Wages and Salaries 1,330 716
Superannuation 227 106
Separation and redundancies 852 1,099
Operating leases straight-lining 3,244 3,498
Reinsurance premiums 366 476
Total other payables 6,019 5,895

Note 3.4. Provisions

  2017 2016
  $'000 $'000
Note 3.4A: Gross Outstanding Claims    
Gross outstanding claims 18,897 13,290
Less: reinsurer's liability (2,050) (571)
Net outstanding claims 16,847 12,719
     
Outstanding claims expected to be settled    
   No more than 12 months 16,227 11,710
   More than 12 months 620 1,009
Net outstanding claims 16,847 12,719

DSHIS has incurred claims during 2016–17 for which recoveries have and will be made in accordance with reinsurance treaties, which were in force at the date of loss. The effect of these treaties is taken into account in calculating the outstanding claims.

In determining the gross claims outstanding, the actuary has applied a prudential margin of 11% (2016: 11%), to a central estimate of the expected present value of future payments for claims incurred of $18,896,640 (2016: $13,290,030), resulting in a risk margin component of $1,872,640 (2016: $1,317,030).

  2017 2016
  $'000 $'000
Note 3.4B: Other Provisions    
Provision for restoration obligations 3,217 2,918
Total other provisions 3,217 2,918

Reconciliation of other provisions

  Provision for restoration on leased property
  $'000
As at 1 July 2016 2,918
Additional provisions made 241
Unwinding of discount or change in discount rate 58
Total as at 30 June 2017 3,217

DVA currently has 20 agreements for the leasing of premises which have provisions requiring DVA to restore the premises to their original condition at the conclusion of the lease. DVA has made a provision to reflect the present value of this obligation.

 

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