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Appendix 4: Australian National Preventive Health Agency Financial Statements

Australian National Preventive Health Agency Financial Statements

Essential functions of the Australian National Preventive Health Agency (ANPHA) transferred to the Department of Health from 1 July 2014.
The secretary of the Department of Health, pursuant to subsection 17A(3) of the Public Governance, Performance and Accountability Rule 2014, is responsible for producing the financial statements for ANPHA, as would have been required by the accountable authority under the Public Governance, Performance and Accountability Act 2013.

Independent Auditor's Report

Australian National Preventive Health Agency Independent Auditor’s Report Auditor’s Responsibilities for the Audit of the Financial Statements My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I
exercise professional judgement and maintain professional scepticism throughout the audit. I also:

  • 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 those charged with governance 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

31 August 2018

Statement by the Secretary and Chief Financial Officer

Financial Statements

Statement of Comprehensive Income

for the period ended 30 June 2018

2018

2017

$

$

NET COST OF SERVICES

EXPENSES

Resources incurred free of charge

12,205

15,652

Total expenses

12,205

15,652

Other revenue

Resources received free of charge

12,205

14,954

Total other revenue

12,205

14,954

Total own-source income

12,205

14,954

Net (cost of) services

-

(698)

Surplus/(Deficit)

-

(698)

Surplus/(Deficit) attributable to the Australian Government

-

(698)

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

Statement of Financial Position
as at 30 June 2018 as at 30 June

2018

2017

$

$

ASSETS

Financial assets

Trade and other receivables

-

1,364,169

Total financial assets

-

1,364,169

Total assets

-

1,364,169

LIABILITIES

-

Total liabilities - -

-

-

Net assets

-

1,364,169

EQUITY

-

1,364,169

Accumulated surplus

-

1,364,169

Total equity

-

1,364,169

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

Statement of Changes in Equity
for the period ended 30 June 2018

Retained earnings

Total equity

2018

2017

2018

2017

$

$

$

$

Opening balance

Balance carried forward from previous period

1,364,169

1,364,867

1,364,169

1,364,867

Opening balance

1,364,169

1,364,867

1,364,169

1,364,867

Comprehensive income

Deficit for the period

-

(698)

-

(698)

Total comprehensive income

-

(698)

-

(698)

Contibuted Equity

Reduction of annual appropriation 1

(1,364,169)

-

(1,364,169)

-

Total transactions with owners

(1,364,169)

-

(1,364,169)

-

Closing balance as at 30 June

-

1,364,169

-

1,364,169

1.Appropriation Act (No. 1) 2013-14 - Repealed 28 March 2018

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

Cash Flow Statement
for the period ended 30 June 2018

2018

2017

$

$

OPERATING ACTIVITIES

Cash used

Suppliers

-

(698)

Total cash used

-

(698)

Net cash from operating activities

-

(698)

FINANCING ACTIVITIES

Cash used

Cash returned to the Official Public Account

-

(16,928)

Total cash used

-

(16,928)

Net cash from financing activities

-

(16,928)

Net (decrease) in cash held

-

(17,626)

Cash and cash equivalents at the beginning of the reporting period

-

17,626

Cash and cash equivalents at the end of the reporting period

-

-

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

Administered Schedule of Assets and Liabilities
as at 30 June 2018

2018

2017

$

$

ASSETS

Financial assets

Cash in special accounts

12,382,827

12,382,827

Total financial assets

12,382,827

12,382,827

Total assets administered on behalf of Government

12,382,827

12,382,827

Net assets

12,382,827

12,382,827

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

Administered Reconciliation Schedule
as at 30 June 2018

2018

2017

$

$

Opening administered assets less administered liabilities as at 1 July Surplus/(deficit) items:

12,382,827

12,382,827

Closing administered assets less administered liabilities as at 30 June

12,382,827

12,382,827

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

Overview

Abolition of the Australian National Preventive Health Agency

In the 2014-15 Budget papers the Australian Government announced as part of its Smaller Government initiative that it would abolish the Australian National Preventive Health Agency (ANPHA) and integrate its ongoing functions into the Department of Health, including the administration of social marketing activities and the provision of grants to third parties for preventive health activities.

A bill to abolish ANPHA was introduced to Parliament on 15 May 2014 by the Australian Government. The bill was referred to the Senate Community Affairs Committee on 15 May and on 14 July 2014, the Committee recommended that the Bill be passed. The House of Representatives passed the bill on 3 June 2014 and the bill was introduced to the Senate on 16 June 2014 and was negatived by the Senate on the second reading on 25 November 2014. There is currently no bill before Parliament to abolish ANPHA.

The Department of Health was provided funding in the 2014-15 Budget to integrate and transition the ongoing functions of ANPHA into the Department of Health. All ongoing administered grants to third parties are being managed by the Department of Health.

ANPHA has not been provided any annual appropriations since 2013-14 Appropriation Acts. The 2013-14 Appropriation Act was repealed on 28 March 2018. Therefore ANPHA has no Departmental Appropriation receivable. At 30 June 2018 ANPHA has no debts. ANPHA has no employees. The Chief Executive Officer resigned effective 5 January 2015.

The Secretary of the Department of Finance, pursuant to subsection 17A(3) of the Public Governance, Performance and Accountability Rule 2014 instructed the Secretary of the Department of Health to produce the financial statements for ANPHA as would have been required by the accountable authority.

ANPHA is an Australian Government Agency and does not have a separate legal personality to the Australian Government.

Objectives of the Australian National Preventive Health Agency

ANPHA is listed as a non-corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and its role and functions are set out in the Australian National Preventive Health Agency Act 2010 .

The Australian Government established ANPHA on 1 January 2011 to provide a new national capacity to drive preventive health policy and programs.

ANPHA will not continue to exist in its present form and will not continue its programs. Funding has not been provided by Parliament for ANPHA’s administration and programs.

ANPHA was structured to meet one outcome:

Outcome 1: A reduction in the prevalence of preventable disease, including through research and evaluation to build the evidence base for future action, and by managing lifestyle education campaigns and developing partnerships with non-government sectors.

ANPHA activities that contributed toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by ANPHA in its own right. Administered activities involve the management or oversight by ANPHA, on behalf of the Government, of items controlled or incurred by the Government.

Basis of Preparation of the Financial Statements

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

The financial statements have been prepared in accordance with:

a) Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2017; and

b) 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.

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

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the contingencies note.

ANPHA had no departmental or administered commitments or contingencies as at 30 June 2017 or 30 June 2018.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

Significant Accounting Judgements and Estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

Future Australian Accounting Standard Requirements

No new standards, revised standards, interpretations and amending standards that were issued by the Australian Accounting Standards Board prior to the sign-off date, are expected to have a material financial impact on the Agency for future reporting periods.

Revenue

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when ANPHA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. ANPHA currently has no Appropriation receivables.

Employee Benefits

There were no person's engaged or reportable to ANPHA as at 30 June 2018.

Cash

Cash is recognised at its nominal amount. Cash and cash equivalents include:

a) cash on hand; and

b) cash in special accounts.

ANPHA no longer holds any cash independently. ANPHA closed all bank accounts prior to 30 June 2017, and balances in these accounts were formally returned to the Official Public Account.

Financial Assets

Loans and Receivables Impairment of Financial Assets

ANPHA has no Financial Assets as at 30 June 2018.

Property, Plant and Equipment

ANPHA has no Property, Plant or Equipment.

Taxation / Competitive Neutrality

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

Revenues, expenses and assets are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

Related Party Relationships:

ANPHA is an Australian Government controlled entity. Related parties to ANPHA are the Portfolio Minister and Executive Government, and other Australian Government entities.

There were no Related Party transactions to report during 2017-18 or in the comparative year in relation to ANPHA.

Events after the Reporting Period Departmental

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities

of the entity.

Administered

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the entity.

Reporting of Administered Activities

There were no Administered activities to report during 2017-18 or in the comparative year in relation to ANPHA.

Notes to and forming part of the financial statements

Note 1.1: Appropriations

Unspent Annual Appropriations ('Recoverable GST exclusive')

2018

2017

Authority

$

$

DEPARTMENTAL

Appropriation Act (No.1) 2013-2014 - Repealed 28 March 2018

-

1,364,169

Total departmental

-

1,364,169

Note 1.2: Special Accounts

Special Accounts (Recoverable GST exclusive)

The Australian National Preventive Health Agency Special Account (Administered)1,2,3

2018

$

2017

$

Balance brought forward from previous period

12,382,827

12,382,827

Available for payments

12,382,827

12,382,827

Total balance carried to the next period

12,382,827

12,382,827

  1. Appropriation: Public Governance, Performance and Accountability Act 2013, Section 80.
  2. Establishing Instrument: Australian National Preventive Health Agency Act 2010, Section 50.
  3. Purposes of the Account:
    1. paying or discharging the costs, expenses and other obligations incurred by the Commonwealth in the performance of the CEO's functions;
    2. paying any remuneration and allowances payable to any person under the Australian National Preventive Health Agency Act 2010; and
    3. meeting the expenses of administering the Account.