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

Note 13: Contingent Assets and Liabilities

Notes to and Forming Part of the Financial Statements

Page last updated: 17 July 2019

 
Guarantees
Claims for damages or costs
Total
2014
$'000
2013
$'000
2014
$'000
2013
$'000
2014
$'000
2013
$'000
Contingent assets
Balance from previous period
-
86
-
-
-
86
Expired
-
(86)
-
-
-
(86)
Total contingent assets
-
-
-
-
-
-
 
Contingent liabilities
Balance from previous period
27,600
27,600
2,058
465
29,658
28,065
New
-
-
1,940
-
1,940
Re-measurement
-
-
-
3
-
3
Liabilities recognised
-
-
(135)
(90)
(135)
(90)
Obligations expired
-
-
(155)
(260)
(155)
(260)
Total contingent liabilities
27,600
27,600
1,768
2,058
29,368
29,658
Net contingent liabilities
(27,600)
(27,600)
(1,768)
(2,058)
(29,368)
(29,658)

Quantifiable Contingencies

Quantifiable Contingent Assets

There were no quantifiable contingent assets as at 30 June 2014 (2013: Nil).

Quantifiable Contingent Liabilities

Claims for damages and costs
The Schedule of Contingencies reports contingent liabilities in respect of claims for damages or costs of $1,768,000 (2013: $2,058,000). The amount represents an estimate of the Department’s liability based on precedent cases. The Department is defending the claims.

Guarantees
The Schedule of Contingencies reports a contingent liability in respect of claims for payments made for Price Disclosure Services of $27,600,000 (2013: $27,600,000). This represents the maximum exposure to the Commonwealth in the event that the current contractor fails to deliver.

Unquantifiable Contingencies

Unquantifiable Contingent Assets

At 30 June 2014, the Department was involved in a number of litigation cases before the courts. The Department has been advised by its solicitors that it is not possible to quantify amounts relating to these cases. Therefore, in accordance with Accounting Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the information usually required by the Standard is not disclosed on the grounds that it may seriously prejudice the outcomes of these cases.

Unquantifiable Contingent Liabilities

At 30 June 2014, the Department was involved in a number of litigation cases before the courts. The Department has been advised by its solicitors that it is not possible to quantify amounts relating to these cases. Therefore, in accordance with Accounting Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the information usually required by the Standard is not disclosed on the grounds that it may seriously prejudice the outcomes of these cases.

The Department has provided an indemnity to its transactional bankers in relation to any claims made against the bank resulting from errors in the Department’s payment files. There were no claims made during the year.

Significant Remote Contingencies
The Department did not have any significant remote contingencies this year or prior year.

In this section