Finance

2018/19 Annual Report - Our National Scheme: For safer healthcare

Overview

The Australian Health Practitioner Regulation Agency (AHPRA), working in partnership with the 15 National Boards, recorded a result which exceeded expectations for 2018/19 as part of our multi-year approach to ensuring sustainable financial arrangements.

Income

Total income from transactions was $203.218 million during the 2018/19 financial year, an increase of $18.402 million from 2017/18. As well as new income of $6.162 million from the inclusion of the Paramedicine Board of Australia, the growth was due to a couple of factors, including an increase in the number of registrants throughout the year, fee increases for seven of the National Boards, with a further seven National Boards freezing their registration fees at 2017/18 levels. Of the seven Boards that increased fees, four increased by 3% indexation or less, with the remaining three increasing fees above 3%.

Expenditure

expenses from transactions were $209.031 million, an increase of $12.456 million from the 2017/18 financial year. This was in part due to increases in notification volumes leading to increased staffing levels; a 114% growth in Queensland matters referred to Queensland Civil and Administrative Tribunal (QCAT); the Enterprise Agreement increases effective from July 2018; and our continued investment in new and modern technology platforms.

Balance sheet

The balance sheet remains healthy at 30 June 2019, with the largest contributor to this being both cash and cash equivalents, and investments held by AHPRA, which largely recognise registration fees paid in advance by registrants, and accumulated equity brought forward. Overall net assets decreased by $6.131 million during 2018/19.

Our financial year 2018/19 ended with $62.865 million of equity recorded at 30 June 2019, a reduction of $6.131 million over the 2017/18 financial year.

As part of our multi-year financial plan, it is crucial we continue to assess equity levels for all Boards. In some cases, to bring these equity levels down to appropriate levels, Boards have used these funds to cover operational expenditure during 2018/19.

The year ahead

We expect the overall financial performance in 2019/20 to be similar to 2018/19, with planned reductions in equity in 2019/20 before equity then stabilises over the coming years, consistent with our five-year financial plan.

It is expected that AHPRA, in partnership with the National Boards, will continue to be solvent throughout 2019/20, including the Aboriginal and Torres Strait Islander Health Practice Board of Australia (ATSIHPBA). From the financial year 2017/18, AHPRA no longer receives a government grant for ATSIHPBA. Due to low registrant numbers and consistent with the prior year, the continued use of scheme interest income was approved to ensure the financial sustainability of ATSIHPBA.

Statement of comprehensive income for the year ended 30 June 2019

Continuing operations Income from transactions Note 2019 $'000 2018 $'000
Registration fee income A1 193,499 174,290
Interest income A2 5,085 4,939
Other income A3 4,634 5,587
Total income from transactions   203,218 184,816
Continuing operations Expenses from transactions Note 2019 $'000 2018 $'000
Board and committee sitting fees A4 6,236 6,009
Legal and notification costs A4 11,090 11,900
Office of the Health Ombudsman (OHO, in Queensland) E5 7,188 4,222
Accreditation expenses (external) A4 9,676 9,484
Staffing costs A4 125,045 115,716
Travel and accommodation A4 7,334 6,985
Systems and communications   10,897 9,650
Property expenses   9,097 9,350
Strategic and project consultant costs   1,682 2,159
Depreciation and amortisation B5(1) 3,465 4,207
Administration expenses A4(1) 17,321 16,893
Total expenses from transactions   209,031 196,575
Net result for the year   -5,813 -11,759
Comprehensive result   -5,813 -11,759

Balance sheet as at 30 June 2019

Current assets Note 2019 $'000 2018 $'000
Cash and cash equivalents C1 10,170 5,292
Investments C2 64,000 54,000
Prepayments   1,789 3,290
Receivables B2 1,551 4,083
Accrued income A2 861 1,151
Leased assets C4 534 532
Total current assets   78,905 683,48
Non-current assets Note 2019 $'000 2018 $'000
Long-term investments C2 110,000 112,000
Leased assets C4 3,953 4,475
Plant and equipment B4 11,117 11,161
Intangible assets B5 4,155 438
Total non-current assets   129,225 128,074
Total assets   208,130 196,422
Current liabilities Note 2019 $'000 2018 $'000
Payables and accruals B3 15,865 12,307
Income in advance A1 96,222 85,049
Employee benefits D1 18,616 14,753
Lease liability C4 1,284 1,284
Total current liabilities   131,987 113,393
Non-current liabilities Note 2019 $'000 2018 $'000
Employee benefits D1 3,990 3,537
Lease liability C4 8,471 9,755
Make good provision C4(1) 817 741
Total non-current liabilities   13,278 14,033
Total liabilities   145,265 127,426
Net assets   62,865 68,996
Equity Note 2019 $'000 2018 $'000
Contributed capital C3 43,895 43,895
Accumulated surplus C3 18,970 25,101
Total equity   62,865 68,996
Commitments C5    
Contingent assets and liabilities B6  

This statement should be read in conjunction with the accompanying notes that are in the full version of the annual report.

Statement of changes in equity for the year ended 30 June 2019

Note Contributed capital $'000 Accumulated surplus $'000 Total equity $'000
Balance at 1 July 2017   43,895 36,860 80,755
Net result for the year     -11,759 -11,759
Balance at 30 June 2018   43,895 25,101 68,996
Change in accounting policy E1(9)   -318 -318
Restated balance at 1 July 2018   43,895 24,783 68,678
Net result for the year     -5,813 -5,813
Balance at 30 June 2019 C3 43,895 18,970 62,865

This statement should be read in conjunction with the accompanying notes that are in the full version of the annual report.

Statement of cash flows for the year ended 30 June 2019

Cash flows from operating activities Note 2019 $'000 2018 $'000
Payments to suppliers, employees and others   -204,598 -193,096
Receipts relating to registrant fees   204,580 179,096
Net Goods and Services Tax (GST) received from the Australian Taxation Office (ATO)   7,401 7,558
Other receipts   7,166 2,751
Interest received   5,467 6,366
Net cash flows from operating activities B1 20,016 2,675
Cash flows from investing activities Note 2019 $'000 2018 $'000
Payments for plant and equipment, intangibles and work-in-progress   -7,138 -5,519
Purchase of investments   -81,000 -124,000
Proceeds of investments   73,000 125,000
Net cash flows used in investing activities   -15,138 -4,519
Net increase/(decrease) in cash and cash equivalents   4,878 -1,844
Cash and cash equivalents at the beginning of the year   5,292 7,136
Cash and cash equivalents at end of the year C1 10,170 5,292

All amounts are inclusive of GST.
This statement should be read in conjunction with the accompanying notes that are in the full version of the annual report.

 
 
Page reviewed 2/12/2019