The Australian Health Practitioner Regulation Agency (AHPRA), working in partnership with the 14 National Boards, recorded a surplus of $1.852 million for the financial year 2015/16. This was similar to the $1.861 million recorded for the financial year 2014/15.
Equity held by AHPRA on behalf of the 14 National Boards as at 30 June 2016 was $86.756 million, an increase of $1.852 million from 30 June 2015 through accumulated surplus during the 2015/16 financial year.
The last contribution to contributed capital was in 2012/13 and related to the 2012 addition of four professions to the National Registration and Accreditation Scheme. The contributed capital component of equity is $43.895 million, and is attributed to the National Boards.
It is expected that the National Boards will have reasonable and sufficient equity to cover their commitments. To reduce some equity levels National Boards will deliberately utilise these funds to cover operational expenditure, including funding the replacement of core business infrastructure during 2016/17.
Total income from transactions was $170.929 million during the 2015/16 financial year, an increase of $0.466 million from 2014/15. The growth was due to an increase in the number of registrants throughout the year and Consumer Price Index increase for four of the National Boards, with the remaining National Boards reducing or maintaining their registration fees during the year.
Total expenses from transactions were $169.077 million, an increase of $0.475 million from the 2014/15 financial year. Though staffing increased by indexation during the year, this was offset by less spending on travel and accommodation, external legal expenditure and accreditation.
AHPRA’s net assets increased by $1.852 million during the year to $86.756 million. Cash and cash equivalents combined with investments remained similar to the previous year ($174.421 million to 30 June 2016, compared with $167.217 million at 30 June 2015).
The most significant change was that investments classified as non-current increased from $71 million to $119 million, reflecting the change in maturity timeframes for a number of the investments due to the cash flow requirements of the business.
Overall the balance sheet is healthy and the largest contributor to this is both cash and cash equivalents, and investments held by AHPRA.
The year ahead
An organisational transformation program will continue during 2016/17 and will require the partial use of accumulated surpluses from previous years. Overall, after several years of increased equity we expect equity to reduce from its current level of $86.756 million in 2016/17.
It is expected that AHPRA, in partnership with the National Boards, will continue to be solvent throughout 2016/17. The next five year financial strategy, which will commence from 2017, will be important to ensure the long-term financial sustainability to fund the work of the National Registration and Accreditation Scheme.