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Audited financial statements

The ANAO inspected the Agency’s financial records and provided an unqualified audit opinion on the financial statements and accompanying explanatory notes on 29 September 2020. The ANAO’s report and the Agency’s financial statements are presented below.

The Agency will continue to focus on its budget management in 2020–21 to maintain its financial sustainability and to deliver strongly against its statutory priorities.

Australian Digital Health Agency Financial Statements for the period ended 30 June 2020

2019-20 ADHA Financial Statements table of contents
  Statement by the Chair of the Board, Chief Executive Officer and Chief Financial Officer;  Statement of Comprehensive Income;  Statement of Financial Position;  Statement of Changes in Equity;  Cash Flow Statement; and  Notes to and forming part of the financial statements, comprising a summary of significant accounting policies and other explanatory information. Basis for opinion I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor‐General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) to the extent that they are not in conflict with the Auditor‐ General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Accountable Authority’s responsibility for the financial statements As the Accountable Authority of the Entity, the Board is responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards – Reduced Disclosure Requirements and the rules made under the Act. The Board is also responsible for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board is responsible for assessing the ability of the Entity to continue as a going concern, taking into account whether the Entity’s operations will cease as a result of an administrative restructure or for any other reason. The Board is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.
  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control;  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;  conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and  evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Australian National Audit Office Sean Benfield Executive Director Delegate of the Auditor‐General Canberra 29 September 2020
In our opinion, the attached financial statements for the period ended 30 June 2020 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act. In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Digital Health Agency will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the Australian Digital Health Agency Board Members. Signed…………………………… Signed……………………………. Signed……………………………… Elizabeth Deveny Bettina McMahon Steve Momcilovic Board Chair Acting Chief Executive Officer Chief Financial Officer Accountable Authority 28 September 2020 28 September 2020 28 September 2020

Australian Digital Health Agency

Statement of Comprehensive Income

for the period ended 30 June 2020

ACTUAL

BUDGET ESTIMATE

2020

2019

Original Budget

Variance

Notes

$'000

$'000

$'000

$'000

NET COST OF SERVICES

Expenses

Employee Benefits

1.1A

34,288

33,551

36,207

(1,919)

Suppliers

1.1B

175,444

218,811

175,567

(123)

Depreciation and Amortisation

2.2A

37,703

23,277

29,657

8,046

Finance Costs

1.1C

193

0

0

193

Write-Down and Impairment of Assets

1.1D

2,275

1,137

0

2,275

Total expenses

249,903

276,776

241,431

8,472

Own-Source Income

Own-Source Revenue

Contributions from Jurisdictions

1.2A

34,280

30,220

32,250

2,030

Interest

1.2B

367

1,479

0

367

Rental Income

1.2C

171

0

0

171

Other Revenue

1.2D

9,587

8,791

0

9,587

Other Gains

195

0

0

195

Total own-source revenue

44,600

40,490

32,250

12,350

Net cost of services

(205,303)

(236,286)

(209,181)

3,878

Revenue from Government

1.2E

178,613

219,270

179,524

(911)

(Deficit) attributable to the Australian Government

(26,690)

(17,016)

(29,657)

2,967

Total comprehensive (loss) attributable to the Australian Government

(26,690)

(17,016)

(29,657)

2,967

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Expenses

Increase in employee benefits from 2018–19 relates to increases in Average Staffing Level (ASL) during 2019–20. The Agency is still under ASL budget profile (250) as at 30 June 2020 (242). Increased depreciation relates to amortisation of right-of-use assets under AASB16 Leases with $4.1 million recorded for the 2019–20 year which was not budgeted for. Write downs of $2.3 million due to the annual impairment assessment of intangible assets were also not budgeted for.

Revenue

Contribution from jurisdictions $2.0 million increase to budget relates to recognition of prior year funding previously recognised as unearned income, as part of transition to AASB 1058 Income for Not for Profit Entities.

Other revenue of $9.6 million was unbudgeted and predominately relates to funds received from the Department of Health in relation to the Electronic Prescribing Project. The revenue was recognised upon completion of milestones set out in the contract.

An operating loss was approved for 2019–20 for the allowance for depreciation/amortisation, consistent with previous years. This operating loss was approved by the Minister of Health and Minister of Finance. There is no impact on the financial sustainability of the Australian Digital Health Agency (the Agency) resulting from the operating loss in 2019–20.

Australian Digital Health Agency

Statement of Financial Position

as at 30 June 2020

ACTUAL

BUDGET ESTIMATE

2020

2019

Original Budget

Variance

Notes

$'000

$'000

$'000

$'000

ASSETS

Financial Assets

Cash and Cash Equivalents

2.1A

85,427

83,411

66,331

19,096

Trade and Other Receivables

2.1B

8,068

6,405

5,962

2,106

Total financial assets

93,495

89,816

72,293

21,202

Non-Financial Assets

Leasehold Improvements

2.2A

3,746

4,666

515

3,231

Right of use Assets

2.2A

15,379

0

0

15,379

Plant and Equipment

2.2A

2,554

2,771

1,041

1,513

Intangibles

2.2A

75,575

89,912

83,238

(7,663)

Other Non-Financial Assets

2.2B

6,426

11,426

3,641

2,785

Total non-financial assets

103,680

108,775

88,435

15,245

Total assets

197,175

198,590

160,728

36,447

LIABILITIES

Payables

Suppliers

2.3A

42,802

51,609

51,417

(8,615)

Other Payables

2.3B

671

4,910

2,123

(1,452)

Total payables

43,473

56,519

53,540

(10,067)

Interest bearing liabilities

Leases

2.4A

17,677

0

0

17,677

Total interest bearing liabilities

17,677

0

0

17,677

Provisions

Employee Provisions

3.1A

7,887

7,141

6,838

1,049

Other Provisions

3.1B

298

1,826

637

(339)

Total provisions

8,185

8,967

7,475

710

Total liabilities

69,335

65,486

61,015

8,320

Net assets

127,840

133,104

99,713

28,127

EQUITY

Contributed Equity

170,819

150,419

170,819

0

Reserves

15,776

15,776

15,776

0

Retained Surplus / (Accumulated Deficit)

(58,755)

(33,091)

(86,882)

28,127

Total equity

127,840

133,104

99,713

28,127

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Assets

Total assets were higher than budgeted partially due to increases in the amount of cash held at 30 June. This favourable cash position is mainly due to accrued expenses on the statement of financial position with payments to suppliers to be made in the first months of the next reporting period.

Right-of-use assets of $15.0 million relate to implementation of AASB 16 Leases for office leases held in Sydney, Brisbane and Canberra. Other Non-Financial Assets are higher than budget due to prior year audit adjustments to recognise a prepayment for Primary Health Networks (PHN) unspent funding (refer Equity).

Liabilities

Total liabilities were higher than budgeted mainly due to the implementation of AASB 16 Leases resulting in the recognition of lease liabilities with $17.7 million recorded for office lease commitments. This was offset by a lower than anticipated payables balance at 30 June 2020.

Equity

Refer to the Statement of Changes in Equity.

Australian Digital Health Agency

Statement of Changes in Equity

for the period ended 30 June 2020

ACTUAL

BUDGET ESTIMATE

2020

2019

Original Budget

Variance

$'000

$'000

$'000

$'000

CONTRIBUTED EQUITY/CAPITAL

Opening balance

Balance carried forward from previous period

150,419

112,877

150,419

0

Adjusted opening balance

150,419

112,877

150,419

0

Transactions with owners

Contributions by owners

Equity injection – Appropriations

20,400

37,542

20,400

0

Total transactions with owners

20,400

37,542

20,400

0

Closing balance as at 30 June

170,819

150,419

170,819

0

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period1

(33,091)

(16,075)

(57,225)

24,134

Adjustment on initial application of AASB 162

1,026

0

0

1,026

Adjusted opening balance

(32,065)

(16,075)

(57,225)

25,160

Comprehensive income

(Deficit) for the period

(26,690)

(17,016)

(29,657)

2,967

Total comprehensive income

(26,690)

(17,016)

(29,657)

2,967

Closing balance as at 30 June

(58,755)

(33,091)

(86,882)

28,127

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

776

776

776

0

Closing balance as at 30 June

776

776

776

0

CASH RESERVE

Opening balance

Balance carried forward from previous period

15,000

15,000

15,000

0

Comprehensive income

Closing balance as at 30 June

15,000

15,000

15,000

0

TOTAL EQUITY

Opening balance

Balance carried forward from previous period1

133,104

112,578

108,970

24,134

Adjustment on initial application of AASB 162

1,026

0

0

1,026

Adjusted opening balance

134,130

112,578

108,970

25,160

Comprehensive income

(Deficit) for the period

(26,690)

(17,016)

(29,657)

2,967

Other comprehensive income

0

0

0

0

Total comprehensive income

(26,690)

(17,016)

(29,657)

2,967

Transactions with owners

Contributions by owners

Equity injection - Appropriations

20,400

37,542

20,400

0

Total transactions with owners

20,400

37,542

20,400

0

Closing balance as at 30 June

127,840

133,104

99,713

28,127

The above statement should be read in conjunction with the accompanying notes.

1 The Agency entered into contracts for service agreements with Primary Health Networks (PHNs) in 2018–19. At the 30 June 2019, monies paid under the agreements were acquitted by the PHNs with unspent funds of $5.7 million remaining should have been reclassified to prepayments. This prior period error has been restated in the prior year in the Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity.

2 Lease incentive assets, provision for lease incentive and lease straight lining have been adjusted against retained earnings on initial application of AASB 16.

Accounting Policy

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Cash Reserve

The purpose of this reserve is to recognise the potential costs of winding up the Agency should funding not be approved for future years. The creation of this reserve account has been approved by the Board.

Budget Variances Commentary

Statement of Changes in Equity

Equity is largely in line with expectations. The total equity position of the Agency has remained stable with the exception of prior period errors and lease adjustments as noted above.

The variance of $28.0 million relates to the initial recognition of ROU Assets as required by AASB 16.

Australian Digital Health Agency

Cash Flow Statement

for the period ended 30 June 2020

ACTUAL

BUDGET ESTIMATE

2020

2019

Original Budget

Variance

Notes

$'000

$'000

$'000

$'000

OPERATING ACTIVITIES

Cash received

Appropriations

178,613

219,270

179,524

(911)

Interest

424

1,509

0

424

Net GST received

18,540

26,493

16,123

2,417

Contributions from Jurisdictions

32,250

30,220

32,250

0

Other

6,295

10,696

0

6,295

Total cash received

236,122

288,188

227,897

8,225

Cash used

Employees

33,196

33,301

36,207

(3,011)

Suppliers

199,150

250,814

125,567

73,583

Net GST paid

0

0

16,123

(16,123)

Interest payments on lease liabilities

193

0

0

193

Total cash used

232,539

284,115

177,897

54,642

Net cash flows from operating activities

3,583

4,073

50,000

(46,417)

INVESTING ACTIVITIES

Cash received

Investments

50,000

187,000

0

50,000

Total cash received

50,000

187,000

0

50,000

Cash used

Purchase of property, plant and equipment

19,602

38,166

20,400

(798)

Investments

50,000

187,000

0

50,000

Total cash used

69,602

225,166

20,400

49,202

Net cash flows (used by) investing activities

(19,602)

(38,166)

(20,400)

798

FINANCING ACTIVITIES

Cash received

Contributed Equity

21,970

35,972

20,400

1,570

Total cash received

21,970

35,972

20,400

1,570

Cash used

Principal payments of lease liabilities

3,935

0

0

3,935

Total cash used

3,935

0

0

3,935

Net cash flows from financing activities

18,035

35,972

20,400

(2,365)

Net increase in cash held

2,016

1,879

50,000

(47,984)

Cash and cash equivalents at the beginning of the reporting period

83,411

81,531

16,331

67,080

CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

2.1A

85,427

83,411

66,331

19,096

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Cash Flow Statement

Cash received from operating activities was higher than budget which is consistent with an increase in revenue for the Electronic Prescribing Project $6.2 million.

Cash used for supplier payments was higher than budget which is due to the timing of payments to suppliers.

Notes to and forming part of the financial statements

Overview

Objectives of the Agency

The Australian Digital Health Agency (the Agency) is an Australian Government controlled corporate Commonwealth Agency established by the Public Governance, Performance and Accountability (Establishing the Australian Digital Health Agency) Rule 2016 (the Rule).

The Agency was established as a Corporate Commonwealth Agency on 30 January 2016 following registration of the rule on 29 January 2016 and commenced operations on 1 July 2016. All assets and liabilities of National E- Health Transition Authority and My Health Record (MHR) system operation activities managed by the Department of Health transferred to the Agency on that date.

The Agency has responsibility for the strategic management and governance for the national digital health strategy and the design, delivery and operations of the national digital healthcare system including the MHR system. It provides the leadership, coordination and delivery of a collaborative and innovative approach to utilising technology to support and enhance a clinically safe and connected national health system.

The Agency is structured to meet the following outcome:

Outcome 1: To deliver national digital healthcare systems to enable and support improvement in health outcomes for Australians

The continued existence of the Agency in its present form and with its present programs is dependent on:

  • Government policy and on continued funding by the Australian Government for the Agency’s administration and programs relating to the MHR functions, extending the 2017-18 Budget measure titled My Health Record — continuation and expansion.
  • Funding from the Australian Government, states and territories received pursuant to the Inter-Governmental Agreement signed in October 2018, and on any future such agreements.

The Basis of Preparation

The financial statements are general purpose financial statements as required by section 42 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The financial statements have been prepared in accordance with:

  1. Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015; and
  2. Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest $’000 unless otherwise specified.

The financial statements have been prepared on a going concern basis. As per the 2019–20 Health Portfolio Budget Statements (PBS), the Agency is not currently resourced for the 2020–21 full year. This is due to timing of the Budget which has been moved to October 2020 for 2020–21, noting that the Appropriation Acts of 2020-21 provided for Agency funding in line with 2019–20 estimates. The Agency is not resourced for the forward estimates; however, the Government continues to publicly support the Agency’s objectives, and the Council of Australian Governments (COAG) Intergovernmental Agreement on National Digital Health is in place until 30 June 2022. As such, the Agency continues to operate as a going concern until such time as a formal decision is made not to proceed with Agency activities as outlined in the 2019-20 PBS.

In 2019–20, COVID-19 has had significant health and economic impacts on a global scale. The Agency has assessed the potential impacts of COVID-19 on its operations, including as part of reviewing impairment of fixed assets, and there is no material impact to items presented in these accounts.

New Accounting Standards

All new, revised or amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect on the Agency’s financial statements.

Standard/ Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 15 Revenue from Contracts with Customers

(AASB 15)

AASB 1058 Income for Not-For-Profit Entities

(AASB1058)

AASB 15, AASB 2016-8 and AASB 1058 became effective 1 July 2019.

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue. The core principle of AASB 15 is that an Agency recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Agency expects to be entitled in exchange for those goods or services.

AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 1004 Contributions and applies to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable the Agency to further its objectives, and where volunteer services are received.

The adoption of these standards has not had a material effect on the Agency’s revenue recognition. The details of the changes in accounting policies, transitional provisions and adjustments are in the relevant notes to the financial statements.

AASB 16 Leases (AASB 16)

AASB 16 became effective on 1 July 2019.

This new standard has replaced AASB 117 Leases, Interpretation 4Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases – Incentives and Interpretation 127 – Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. AASB 16 substantially carries forward the lessor accounting in AASB 117, with the distinction between operating leases and finance leases being retained. The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

Application of AASB 16 Leases

The Agency adopted AASB 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under AASB 117 and related interpretations.

The Agency elected to apply the practical expedient to not reassess whether a contract is or contains a lease at the date of initial application. Contracts entered into before the transition date that were not identified as leases under AASB 117 were not reassessed. The definition of a lease under AASB 16 was applied only to contracts entered into or changed on or after 1 July 2019 which was not applicable for 2019–20. The Agency elected to exclude lease options from the valuation of right-of-use assets.

AASB 16 provides for certain optional practical expedients, including those related to the initial adoption of the standard. The Agency applied the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:

  • Apply a single discount rate to a portfolio of leases with reasonably similar characteristics;
  • Exclude initial direct costs from the measurement of right-of-use assets at the date of initial application for leases where the right-of-use asset was determined as if AASB 16 had been applied since the commencement date;
  • Reliance on previous assessments on whether leases are onerous as opposed to preparing an impairment review under AASB 136 Impairment of Assets as at the date of initial application; and
  • Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.

As a lessee, the Agency previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. On adoption of AASB 16, the Agency recognised right-of-use assets and lease liabilities in relation to leases of office space which had previously been classified as operating leases.

The lease liabilities were measured at the present value of the remaining lease payments, discounted using the Agency’s incremental borrowing rate as at 1 July 2019. The Agency’s incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 0.99%. The right-of-use assets were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.

Impact On Transition

On transition to AASB 16, the Agency recognised additional right-of-use assets and additional lease liabilities, recognising the difference in retained earnings. The impact on transition is summarised below, noting that onerous leases provision has been adjusted to ROU assets:

Impact on Transition of AASB 16

Departmental

1 July 2019

Right-of-use assets

20,280

Reversal of onerous lease provision

1,332

Lease liabilities

(21,612)

Reversal of Lease incentive (asset)

1,957

Reversal of Lease incentive (provision)

(2,595)

Reversal of Straight-lining provision

(388)

Retained earnings

(1,026)

The following table reconciles the minimum lease commitments disclosed in the Agency’s 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019:

1 July 2019

Minimum operating lease commitment at 30 June 2019

16,786

Plus: commitment on cancellable operating lease at 30 June 2019 (Canberra)

6,910

Less: recoverable taxes included in minimum operating lease commitment at 30 June 2019

(1,526)

Undiscounted lease payments

22,170

Less: effect of discounting using the incremental borrowing rate as at the date of initial application

(558)

Lease liabilities recognised at 1 July 2019

21,612

Prior Year Adjustments

The Agency entered into contracts for service agreements with Primary Health Networks (PHNs) in 2018–19. At the 30 June 2019, monies paid under the agreements were acquitted by the PHNs with unspent funds of $5.7 million remaining should have been reclassified to prepayments. This prior period error has been restated in the prior year in the Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity. The impact is included below.

Statement of Comprehensive Income

Previous Year

$'000

Adjustment

$'000

Restated

$'000

Supplier expenses

224,507

(5,696)

218,811

Total comprehensive gain/ (loss)

(22,712)

5,696

(17,016)

Statement of Financial Position

Previous Year

$'000

Adjustment

$'000

Restated

$'000

Other non-financial assets

5,730

5,696

11,426

Total equity/ Net assets

127,408

5,696

133,104

Taxation

The Agency is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Events After the Reporting Period

There were no matters or circumstances which have arisen since the end of the financial year which significantly affected, or alternatively may affect the operations of the Agency, the results of these operations or state of affairs of the Agency in subsequent years.

1.1 Expenses

1. Financial Performance

This section analyses the financial performance of the Agency for the period ended 30 June 2020.

1.1 Expenses

2020

2019

$'000

$'000

Note 1.1A: Employee Benefits

Wages and salaries

26,936

25,013

Superannuation

Defined contribution plans

2,815

2,561

Defined benefit plans

684

667

Leave and other entitlements

3,853

4,259

Separation and redundancies

0

1,051

Total employee benefits

34,288

33,551

Accounting Policy

Accounting policy for employee related expenses is contained in note 3.1.

2020

2019

$'000

$'000

Note 1.1B: Suppliers

Goods and services supplied or rendered

Consultants

1,120

5,258

Contract for services

124,838

148,746

Contractors

26,322

28,697

Travel

1,438

2,988

IT services

8,232

7,726

Communications

8,585

13,193

Other

4,746

8,015

Total goods and services supplied or rendered

175,281

214,623

Other suppliers

Workers compensation expenses

163

151

Operating lease rentals1

0

4,037

Total other suppliers

163

4,188

Total suppliers

175,444

218,811

1 The Agency has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The Agency has no short-term lease commitments as at 30 June 2020.

The above lease disclosures should be read in conjunction with the accompanying notes 2.2A and 2.4A.

Accounting Policy

Short-term leases and leases of low-value assets

The Agency has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The Agency recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2020

2019

$'000

$'000

Note 1.1C: Finance Costs

Finance leases

0

0

Interest on lease liabilities1

193

0

Unwinding of discount on make good provision

0

0

Total finance costs

193

0

1 The Agency has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The above lease disclosures should be read in conjunction with the accompanying notes 2.2A and 2.4A.

2020

2019

$'000

$'000

Note 1.1D: Write-down and Impairment of Assets

Impairment of property, plant and equipment1

0

12

Impairment on intangible assets2

1,426

1,125

Impairment on ROU assets3

849

0

Total write-down and impairment of assets

2,275

1,137

1 The impairment relates to IT hardware disposed in 2018-19.

2 The impairment relates to a write down of intangible assets at 30 June 2020.

3 The impairment relates to a reassessment of surplus lease space at 30 June 2020.

1.2 Own-source revenue and gains

2020

2019

$'000

$'000

Own-Source Revenue

Note 1.2A: Contributions from Jurisdictions

New South Wales

10,977

9,676

Victoria

8,625

7,603

Queensland

6,883

6,068

Western Australia

3,716

3,276

South Australia

2,427

2,140

Tasmania

740

653

Australian Capital Territory

562

496

Northern Territory

350

308

Commonwealth

0

0

Total contributions from Jurisdictions

34,280

30,220

Accounting Policy

The Agency receives contributions from jurisdictions based on an agreed formula as set out in Schedule A to the Intergovernmental Agreement on National Digital Health (signed October 2018). The above contributions from states and territories of $32.3 million represents half of the total contributions made under the Intergovernmental Agreement, with a further $32.3 million being contributed by the Australian Government. The latter contribution is included in Revenue from Government and is shown in note 1.2E.

In addition, as a result of implementation of AASB 1058, an additional amount of $2.0 million has been ‘earned’ in 2019–20. This amount represents amounts previously treated as an unearned in 2018–19.

2020

2019

$'000

$'000

Note 1.2B: Interest

Deposits

367

1,479

Total interest

367

1,479

Accounting Policy

Interest revenue is recognised using the effective interest method.

2020

2019

$'000

$'000

Note 1.2C: Rental Income

Property lease

171

0

Total rental income

171

0

Lease income for 2019–20 relates to a short term sub-leasing arrangement for the Sydney Office. This space is currently not subleased, and therefore $nil receivable amounts are reported. The above lease disclosure should be read in conjunction with the accompanying notes 2.2A and 2.4A.

2020

2019

$'000

$'000

Note 1.2D: Other Revenue

Other

9,587

8,791

Total other revenue

9,587

8,791

Currently the Agency does not derive revenue from the sale of goods and services. Other Revenue includes funding for the Electronic Prescribing Project provided by the Department of Health.

2020

2019

$'000

$'000

Note 1.2E: Revenue from Government

Department of Health

Corporate Commonwealth entity payment item

178,613

219,270

Total revenue from Government

178,613

219,270

Accounting Policy

Revenue from Government

Funding appropriated to the Department of Health as a corporate Commonwealth Agency payment item for payment to this Agency is recognised as revenue from the Australian Government unless the funding is in the nature of an equity injection or a loan. The Agency’s revenue from the Australian Government includes $32.3 million paid pursuant to the Intergovernmental Agreement (refer also note 1.2A).

2.1 Financial assets

This section analyses Agency’s assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in Section 3 People and Relationships.

2.1 Financial Assets

2020

2019

$'000

$'000

Note 2.1A: Cash and Cash Equivalents

Cash on hand or on deposit

85,427

83,411

Total cash and cash equivalents

85,427

83,411

Accounting Policy

Cash is recognized at its nominal amount. Cash and cash equivalents include cash on hand and deposits in bank accounts with an original maturity of three months or less that are convertible to known amounts of cash and subject to insignificant risk of changes in value.

2020

2019

$'000

$'000

Note 2.1B: Trade and Other Receivables

Goods and services receivables

Goods and services

5,004

3,948

Receivable from Department of Health - equity

0

1,570

Other receivables

168

50

GST receivable from the ATO

2,890

3,102

Interest Receivable

6

63

Total goods and services receivables

8,068

8,733

The goods and services receivables are associated with amounts receivable from the Department of Health, refer Note 1.2D.

Total trade and other receivables (gross)

8,068

8,733

Less impairment loss allowance (receivables)

Impairment - Goods and services1

0

(2,328)

Total impairment loss allowance

0

(2,328)

Total trade and other receivables (net)

8,068

6,405

Credit terms for goods and services were within 30 days. The Agency has not provided any loans.

All trade and other receivables are expected to be recovered within 12 months.

1 The Agency has written off a doubtful debt of $2.3 million in 2019–20, previously recognised as an impairment loss allowance in 2018–19.

Accounting Policy

Financial assets

The Agency classifies its financial assets at the time of initial recognition depending on the nature and purpose of the asset. All receivables are classified as trade and other receivables and are expected to be recovered within 12 months unless other indicated.

The collectability of debts are reviewed at the end of the reporting period and an impairment loss allowance is recognised.

2.2 Non-financial assets

Note 2.2A: 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, computer software and other intangibles for 2020

Leasehold Improvements

Right of Use (ROU) Assets

Plant and Equipment

Computer Software1

Other Intangibles

Total

$’000

$’000

$'000

$'000

$'000

$'000

As at 1 July 2019

Gross book value

6,964

0

5,138

19,898

133,371

165,371

Accumulated depreciation and amortisation

(2,298)

0

(2,367)

(8,651)

(54,705)

(68,021)

Total as at 1 July 2019

4,666

0

2,771

11,247

78,666

97,350

Recognition of right of use asset on initial application of AASB 16

0

20,280

0

0

0

20,280

Adjusted total as at 1 July 2019

4,666

20,280

2,771

11,247

78,666

117,630

Additions

Purchased

27

0

1,050

0

0

1,077

Internally developed

0

0

0

0

18,525

18,525

Impairments recognised net cost of services2

0

0

0

0

(1,426)

(1,426)

Impairments - Gross value

0

0

0

0

(2,517)

(2,517)

Impairments - Accumulated Depreciation

0

0

0

0

1,091

1,091

Impairments on right-of-use assets recognised in net cost of services3

0

(849)

0

0

0

(849)

Depreciation and amortisation

(947)

(4,052)

(1,267)

(3,772)

(27,665)

(37,703)

Disposals

0

0

0

0

0

0

Disposals – Gross Value

0

0

0

(1,764)

0

(1,764)

Disposals – Accumulated Depreciation

0

0

0

1,764

0

1,764

Total as at 30 June 2020

3,746

15,379

2,554

7,475

68,100

97,254

Total as at 30 June 2020 represented by:

Gross book value

6,991

19,431

6,188

18,134

149,379

200,123

Accumulated depreciation, amortisation and impairment

(3,245)

(4,052)

(3,634)

(10,659)

(81,279)

(102,869)

Total as at 30 June 2020

3,746

15,379

2,554

7,475

68,100

97,254

1 The carrying amount of computer software includes all purchased software. Internally generated assets are disclosed as Other Intangibles.

2 $1.4 million was recognised for the impairment to Other Intangibles at 30 June 2020 as a result of 2019–20 impairment reviews.

3 An impairment of $0.9 million was recognized for ROU Assets for surplus lease space.

Capital commitments

The Agency has a $nil contractual obligation in the financial year 2020–21 for the system improvements for MHR.

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognized as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognized as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset recognition threshold

Purchases of property, plant and equipment are recognized initially at cost in the Statement of Financial Position. Purchases costing less than $2,000 are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total) except for IT hardware a lower capitalization threshold of $500 is applicable.

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in leases taken up by the Agency where there exists an obligation to make good. These costs are included in the value of the Agency’s provisions, refer note 3.1B.

Category

Capitalisation Threshold

Purchased IT hardware and IT software

$500

Leasehold improvements

$50,000

Internally developed IT software and hardware

$100,000

IT projects (software and hardware integration)

$100,000

All other property, plant and equipment

$2,000

Lease Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by the Agency as separate asset classes to corresponding assets owned outright.

On initial adoption of AASB 16 the Agency has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition.

Revaluations

Following initial recognition at cost, property, plant and equipment (excluding ROU assets) are carried at fair value (or an amount not materially different from fair value) less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of Asset Revaluation Reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the Statement of Comprehensive Income. Revaluation decrements for a class of assets are recognised directly in the Statement of Comprehensive Income except to the extent that they reversed a previous revaluation increment for that asset class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

All revaluations were conducted in accordance with the revaluation policy. An independent valuation was performed at 30 June 2019 and no material fair value movements were identified for 2019–20. A desktop impairment review process including an assessment of any COVID-19 impacts was completed for all property, plant and equipment.

Depreciation

Depreciable property, plant and equipment are written-off to their estimated residual values over their estimated useful lives, in all cases using the straight-line method of depreciation. Depreciation rates, residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset Class

Useful life (years)

Leasehold improvements

Length of lease

Plant and equipment

3 – 10

Computer software

2 – 5

Other intangibles

1 – 5

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated, and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Agency were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

The Agency has assumed sublease of surplus lease space is more unlikely due to a softer rental market in part due to COVID-19, resulting in a further impairment of ROU assets in 2019–20.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Significant Judgments and Estimates - Intangibles

The Agency’s intangibles comprise software licences, data sets, internally developed software for internal use and the MHR asset. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life which is reviewed as part of the annual impairment process.

2020

2019

$'000

$'000

Note 2.2B: Other Non-Financial Assets

Prepayments1

6,245

9,245

Make good asset2

181

224

Lease incentive asset

0

1,957

Total other Non-Financial Assets

6,426

11,426

Other non-financial assets expected to be recovered

No more than 12 months

6,274

8,064

More than 12 months

152

3,362

Total other Non-Financial Assets

6,426

11,426

No indicators of impairment were found for other Non-Financial Assets.

1 Includes unspent funding of $1.1 million from prior year audit adjustments and $1.3 million from PHN prior period error, and $5.7 million PHN adjustment in the prior year.

2 Make good asset relates to office leases per agreements with landlords.

2.3 Payables

2020

2019

$'000

$'000

Note 2.3A: Suppliers

Trade creditors and accruals

42,802

51,609

Total suppliers

42,802

51,609

2020

2019

$'000

$'000

Note 2.3B: Other Payables

Salaries and wages

615

261

Lease incentive1

0

2,595

Superannuation

56

24

Unearned income2

0

2,030

Total other payables

671

4,910

1 The Agency has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

2 As a result of implementation of AASB 1058, unearned revenue of $2.0m has been 'earned' in 2019–20. This amount represents amounts previously treated as an unearned in 2018–19.

Accounting Policy

Trade creditors and accruals

Trade creditors and accruals are recognised at amortised cost.

Liabilities are recognised to the extent that goods and services have been received.

2.4 Interest bearing liabilities

2020

2019

$'000

$'000

Note 2.4A: Leases

Lease liabilities1

17,677

0

Total leases

17,677

0

1 The Agency has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Total cash outflow for leases for the year ended 30 June 2020 was $4.1 million.

Accounting Policy

Refer to the Overview section for accounting policy on leases.

3.1 Employee provisions

2020

2019

$'000

$'000

Note 3.1A: Employee Provisions

Leave

7,887

7,141

Total employee provisions

7,887

7,141

Employee provisions expected to be settled

No more than 12 months

2,430

2,118

More than 12 months

5,457

5,023

Total employee provisions

7,887

7,141

Accounting Policy

Liabilities for short-term employee benefits and termination benefits expected within 12 months of the end of reporting period are measured at their nominal amounts.

Leave

The liability for employee benefits includes provision for annual leave and long service leave.

No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years is estimated to be less than the annual entitlement for sick leave.

The liability for long service leave has been determined by reference to the shorthand method prescribed by the Government Actuary as per the FRR and Commonwealth Agency Financial Statement Guide. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Agency recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The Agency’s staff comprise both Australian Public Service (APS) employees and staff whose employment is subject to contracts under Common Law. Both groups of employees are reflected in the Agency’s Average Staffing Level (ASL) numbers.

APS staff are either members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The Agency makes employer contributions to the employees’ defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Australian Government. The Agency accounts for these contributions as if they were contributions to defined benefit plans.

In respect of the other more prominent group of Common Law contract employees, the Agency makes employer contributions to funds held outside of the Australian Government.

The liability for superannuation recognised as at 30 June represents outstanding contributions, if any.

2020

2019

$'000

$'000

Note 3.1B: Other provisions

Provision for restoration

298

494

Provision for onerous lease

0

1,332

Total other provisions

298

1,826

Provision for restoration

As at 1 July

494

637

Provision reversed

(196)

(143)

Total as at 30 June

298

494

Provision for onerous lease

As at 1 July

0

0

Additional provision made

0

1,332

Total as at 30 June

0

1,332

Other provisions expected to be settled

No more than 12 months

0

335

More than 12 months

298

1,491

Total other provisions

298

1,826

The Agency currently has three agreements for the leasing of premises and one of those agreements requires the Agency to restore the premises to their original condition at the conclusion of the lease. The Agency has made a provision for restoration to reflect the present value of this obligation.

An onerous lease provision of $1.3 million was recognised at 30 June 2019, reflecting the present value of lease expense, net of estimated sub-lease revenue, for a non-cancellable contract for office space. This has been adjusted as an impairment to the associated ROU Asset on transition to AASB16.

Provision for Restoration Obligation

Where the Agency has a contractual obligation to undertake remedial work upon vacating leased properties, the estimated cost of that work is recognised as a liability. An equal value asset is created at the same time and amortised over the life of the lease of the underlying leasehold property.

3.2 Key management personnel remuneration

Key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling the activities of the Agency, directly or indirectly, including any board member (whether executive or otherwise). The Agency has determined the KMP to be Chief Executive Officer (CEO), Executive Leadership Team (ELT) members and Board members. KMP remuneration is reported in the table below:

2020

2019

$'000

$'000

Key management personnel remuneration expenses

Short-term employee benefits

2,629

2,950

Post-employment benefits

258

281

Other long-term employee benefits

46

50

Termination benefits

0

140

Total key management personnel remuneration expenses1

2,933

3,421

The total number of KMP that are included in the above table for 2019–20 is 15. The total number reported in the prior year was 24 which included a turnover of Board membership in 2018–19.

1 The above KMP remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister’s remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the Agency. The head count only includes KMP who received remuneration from the Agency in 2019–20.

3.3 Related party disclosures

The Agency is an Australian Government controlled corporate Commonwealth Agency. It has a governing Board of members, a CEO and ELT members and a Portfolio Minister.

Pursuant to AASB 124 Related Party Disclosures (AASB 124), the Agency KMP are asked to provide details of where any of their close family members, or a controlled Agency/entities has/have transacted with the Agency. Where any doubt exists, the information is to be recorded and collected in any event.

AASB 124 requires disclosure of related party relationships that include transactions where significant influence exists between the Agency and other parties. The Standard identifies that KMP have the capacity to influence the operations of the Agency, and therefore parties related to KMP become related parties to the Agency and require disclosure in the annual financial statements.

The Agency has determined that all board members, the CEO and ELT members constitute KMP. This includes those acting in a role for three months or more continuously.

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity of ‘common citizens’. Common citizen or ‘open contest’ transactions are not requested or recorded as they reflect those transactions that may be undertaken with the Agency under the same terms and conditions as any other citizen.

The Agency transacts with other Australian Government controlled entities consistent with normal day-to-day business operations provided under normal terms and conditions, including the payment of workers compensation and insurance premiums. These are not considered individually significant to warrant separate disclosure as related party transactions.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the Agency, it has been determined that there are no related party transactions to be separately disclosed.

3.4 Remuneration of auditors

Amounts paid or payable for audit of the financial statements 2019–20 is $120,000 (2019: $120,000).

4.1 Contingent assets and liabilities

Quantifiable Contingencies

The Agency had no quantifiable contingencies at reporting date.

Unquantifiable Contingencies

The Agency had no unquantifiable contingencies at reporting date.

Accounting Policy

Contingent assets and liabilities may arise from uncertainty as to the existence of an asset or liability, or where the amount cannot be reliably measured.

Contingent assets are disclosed when settlement is probable but not virtually certain.

Contingent liabilities are disclosed when settlement is greater than remote.

4.2 Financial instruments

2020

2019

Note 4.2A: Categories of Financial Instruments

$'000

$'000

Financial assets at amortised cost

Cash

85,427

83,411

Trade and Other Receivables

8,068

6,405

Total financial assets at amortised cost

93,495

89,816

Total financial assets

93,495

89,816

Financial Liabilities

Financial liabilities measured at amortised cost

Trade creditors and accruals

42,802

51,609

Total financial liabilities measured at amortised cost

42,802

51,609

Total financial liabilities

42,802

51,609

Accounting Policy

Financial Assets

The Agency classifies its financial assets in the following categories:

  1. financial assets at fair value through profit or loss;
  2. financial assets at fair value through other comprehensive income; and
  3. financial assets measured at amortised cost.

Financial assets are recognised when the Agency becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Interest revenue from financial assets for 2019–20 was $0.4 million (2018–2019: $1.5 million).

Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or amortised cost. Financial liabilities are recognised and derecognised upon ‘trade date’.

Note 4.2B: Credit Risk

The Agency is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. The amount was equal to the total amount of the trade receivables of $8.1 million in 2020 (2019: $6.4 million).

The Agency had no financial assets that were past due but not impaired at 30 June 2020 (2019: None).

4.3 Fair value measurement

The Agency has Leasehold Improvement and Plant and Equipment assets that are measured at fair value. The remaining assets and liabilities disclosed in the Statement of Financial Position do not apply the fair value hierarchy.

The different levels of the fair value hierarchy are defined below:

  • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Agency can access at measurement date.
  • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
  • Level 3: Unobservable inputs for the asset or liability.

Leasehold improvements are categorised as Level 3.

Plant and equipment are categorised as Level 2.

Note 4.3A: Fair Value Measurement

Fair value measurements at the end of the reporting period

2020

2019

$'000

$'000

Non-financial assets

Leasehold Improvements

3,746

4,666

Plant and equipment

2,554

2,771

Total fair value measurements in the statement of financial position

6,300

7,437

Total assets not measured at fair value in the statement of financial position

97,380

101,338

Accounting Policy

All revaluations were conducted in accordance with the revaluation policy stated at note 2.2. An independent valuation was performed at 30 June 2019 and no material fair value movements were identified. The Agency conducted a desktop impairment review for 2019–20 for all assets. A valuation will be conducted by independent valuer in 2020–21.

5.1 Aggregate assets and liabilities

2020

2019

$'000

$'000

Note 5.1A: Aggregate Assets and Liabilities

Assets expected to be recovered in:

No more than 12 months after reporting period

99,770

97,698

More than 12 months after the reporting period

97,405

100,892

197,175

198,590

Liabilities expected to be recovered in:

No more than 12 months after reporting period

50,055

56,969

More than 12 months after the reporting period

19,280

8,517

69,335

65,486