Online version of the 2013-14 Department of Health Annual Report

Financial Performance—Administered

Page last updated: 31 October 2014

The Department’s combined financial statements

The Department’s combined financial statements include the financial statements of the Therapeutic Goods Administration (TGA) and two departmental special accounts, the Office of the Gene Technology Regulator (OGTR) and the National Industrial Chemicals Notification and Assessment Scheme (NICNAS).

Machinery of Government changes

The 2013-14 financial statements are impacted by the Administrative Arrangements Order (AAO) announced in September 2013 which resulted in the transfer of the Ageing and Aged Care function and some Indigenous functions to the Department of Social Services and the Department of the Prime Minister and Cabinet respectively, and the Sports function returning to the Health portfolio. As a consequence, comparability with previous financial year information is reduced.

Income administered on behalf of government

Revenue sourced from recoveries and interest was $1.7 billion

Total 2013-14 administered income was $1.7 billion. Major items include:

  • other revenue of $1.2 billion, which relates predominantly to Health and Hospital Fund receipts ($0.6 billion), collections from Private Health Insurance Administration Council (PHIAC) for private health insurance levies ($0.4 billion); and
  • High Cost Drugs recoveries of $0.5 billion made under cost sharing arrangements with pharmaceutical companies.

Expenses administered on behalf of government

Total expenses administered on behalf of Government were $44.9 billion

For the 2013-14 reporting period, total expenses administered on behalf of the Commonwealth were $44.9 billion compared to $51.2 billion in the previous year, a decrease of $6.3 billion:

  • personal benefits expense increased by $1.5 billion to $35.2 billion ($33.7 billion in 2012-13). Personal benefits primarily relate to the Medicare Benefits and Pharmaceutical Benefits Schemes. These schemes fund access to medical services and medicines;
  • subsidies expense decreased by 73% to $2.5 billion ($9.4 billion in 2012-13). Subsidies relate to residential, aged and community care programmes previously administered by the former Ageing and Aged Care Division. These functions were transferred to the Department of Social Services following the September 2013 AAO;
  • grants expense amounted to $6.2 billion, a reduction of 12% ($7.0 billion in 2012-13). Key recipients of the grant programmes are the National Blood Authority, PHIAC, and the General Practice Education and Training agency, as well as various jurisdictions of local and State Governments and the non-profit sector. The decrease is a result of the September 2013 AAO;
  • supplier expenses were $0.4 billion a reduction of 20% ($0.5 billion in 2012-13); and
  • other expenses of $0.4 billion (consistent with 2012-13 and 2011-12), primarily relates to the transfer of levies from PHIAC to the Official Public Account (OPA).

Administered assets and liabilities

Total administered assets were $1.2 billion

Total administered assets were $1.2 billion. Major administered assets comprise investments of $0.5 billion. As a result of the AAO in September 2013 the Department acquired investments in the Australian Sports Commission and the Australian Sports Foundation. Other assets include receivables of $0.4 billion and inventories of $0.2 billion.

Total administered liabilities were $2.6 billion

Total administered liabilities decreased by $0.3 billion to $2.6 billion ($2.9 billion in 2012-13) predominantly as a result of the timing of grant payments made under milestone and acquittal arrangements.