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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

  2018 2017
  $'000 $'000
Credit terms for goods and services were within 30 days (2017: 30 days).
1.  Includes amounts owing from June 2018 Business Activity Statement and GST amounts on accrued expenses as at 30 June 2018.
Note 3.1A: Cash and Cash Equivalents    
Cash at bank 4,776 3,771
Cash at bank (DSHIS special accounts) 3,198 2,642
Total cash and cash equivalents 7,974 6,413
     
Note 3.1B: Trade and Other Receivables    
Goods and services receivables 2,335 840
Total goods and services receivables 2,335 840
     
Appropriations receivables    
Appropriations receivable 69,975 42,055
Total appropriations receivables 69,975 42,055
     
Other receivables    
Statutory receivables1 2,520 1,687
Salary recoveries 256 281
Other 574 633
Total other receivables 3,350 2,601
Total trade and other receivables (net) 75,660 45,496

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  2018 2017
  $'000 $'000
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
Note 3.1C: Premiums and Recoveries Receivable    
Premiums receivable 14,735 13,440
Reinsurance and other recoveries receivable 871 2,050
Total premiums and recoveries receivable 15,606 15,490
Total premiums and recoveries receivable (net) 15,606 15,490
  2018 2017
  $'000 $'000
Note 3.1D: Investments    
PGPA Act section 58 investments    
  Deposits 64,297 62,169
Total investments 64,297 62,169

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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 2018
  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 2017            
Gross book value 15,135 3,602 190,666 12,900 222,303
Accumulated depreciation/amortisation and impairment (262) (2,526) (120,946) (11,559) (135,293)
Total as at 1 July 2017 14,873 1,076 69,720 1,341 87,010
Additions            
   Purchase or internally developed 9,762 175 25,632 35,569
Revaluations recognised in other comprehensive income 654 654
Depreciation/amortisation (4,827) (562) (18,476) (23,865)
Other Movements 2 (2) 491 (491)
Disposals            
   Other (770) (99) (869)
Total as at 30 June 2018 19,694 588 77,367 850 98,499
             
Total as at 30 June 2018 represented by            
Gross book value            
   Fair value 19,679 3,547 23,226
   Work in progress 920 14 934
   Internally developed — in progress 28,314 28,314
   Internally developed — in use 187,247 187,247
   Purchased software 12,900 12,900
Accumulated depreciation/amortisation and impairment (905) (2,973) (138,194) (12,050) (154,122)
Total as at 30 June 2018 19,694 588 77,367 850 98,499

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  2018 2017
  $'000 $'000
No indicators of impairment were found for other non-financial assets.
Note 3.2B: Other Non-Financial Assets    
Prepayments    
Information technology 2,162 3,237
Rental agreements 2,148 1,221
Health care processing 265 648
Other prepayments 781 556
Total other non-financial assets 5,356 5,662

Note 3.3. Payables

  2018 2017
  $'000 $'000
Settlement is usually made within 30 days.
Note 3.3A: Suppliers    
Trade creditors and accruals 58,912 20,297
Lease Incentive 14,643 7,713
Total suppliers 73,555 28,010

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  2018 2017
  $'000 $'000
Note 3.3B: Unearned Premiums    
Unearned premiums 22,412 21,315
Premium received in advance 558 455
Insurance agency revenue received in advance 66 69
Total unearned premiums 23,036 21,839
  2018 2017
  $'000 $'000
Note 3.3C: Other Payables    
Wages and Salaries 1,243 1,330
Superannuation 215 227
Separation and redundancies 5,247 852
Operating leases straight-lining 2,698 3,244
Reinsurance premiums 388 366
GST payable 23
Total other payables 9,814 6,019

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Note 3.4. Provisions

  2018 2017
  $'000 $'000
Note 3.4A: Gross Outstanding Claims    
Gross outstanding claims 14,710 18,897
Less: reinsurer's liability (871) (2,050)
Net outstanding claims 13,839 16,847
     
Outstanding claims expected to be settled    
   No more than 12 months 13,677 16,227
   More than 12 months 162 620
Net outstanding claims 13,839 16,847

DSHIS has incurred claims during 2017–18 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 12% (2017: 11%), to a central estimate of the expected present value of future payments for claims incurred of $14,710,080 (2017: $18,896,640), resulting in a risk margin component of $1,576,080 (2017: $1,872,640).

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  2018 2017
  $'000 $'000
Note 3.4B: Other Provisions    
Provision for restoration obligations 1,734 3,217
Total other provisions 1,734 3,217

Reconciliation of other provisions

  Provision for restoration on leased property
  $'000
As at 1 July 2017 3,217
Additional provisions made (35)
Amounts used (1,505)
Unwinding of discount or change in discount rate 57
Total as at 30 June 2018 1,734

DVA currently has 16 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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