Finance

2018/19 Annual Report - Our National Scheme: For safer healthcare

Overview

The Australian Health Practitioner Regulation Agency (AHPRA), working in partnership with the 15 National Boards, recorded a result which exceeded expectations for 2018/19 as part of our multi-year approach to ensuring sustainable financial arrangements.

Income

Total income from transactions was $203.218 million during the 2018/19 financial year, an increase of $18.402 million from 2017/18. As well as new income of $6.162 million from the inclusion of the Paramedicine Board of Australia, the growth was due to a couple of factors, including an increase in the number of registrants throughout the year, fee increases for seven of the National Boards, with a further seven National Boards freezing their registration fees at 2017/18 levels. Of the seven Boards that increased fees, four increased by 3% indexation or less, with the remaining three increasing fees above 3%.

Expenditure

expenses from transactions were $209.031 million, an increase of $12.456 million from the 2017/18 financial year. This was in part due to increases in notification volumes leading to increased staffing levels; a 114% growth in Queensland matters referred to Queensland Civil and Administrative Tribunal (QCAT); the Enterprise Agreement increases effective from July 2018; and our continued investment in new and modern technology platforms.

Balance sheet

The balance sheet remains healthy at 30 June 2019, with the largest contributor to this being both cash and cash equivalents, and investments held by AHPRA, which largely recognise registration fees paid in advance by registrants, and accumulated equity brought forward. Overall net assets decreased by $6.131 million during 2018/19.

Our financial year 2018/19 ended with $62.865 million of equity recorded at 30 June 2019, a reduction of $6.131 million over the 2017/18 financial year.

As part of our multi-year financial plan, it is crucial we continue to assess equity levels for all Boards. In some cases, to bring these equity levels down to appropriate levels, Boards have used these funds to cover operational expenditure during 2018/19.

The year ahead

We expect the overall financial performance in 2019/20 to be similar to 2018/19, with planned reductions in equity in 2019/20 before equity then stabilises over the coming years, consistent with our five-year financial plan.

It is expected that AHPRA, in partnership with the National Boards, will continue to be solvent throughout 2019/20, including the Aboriginal and Torres Strait Islander Health Practice Board of Australia (ATSIHPBA). From the financial year 2017/18, AHPRA no longer receives a government grant for ATSIHPBA. Due to low registrant numbers and consistent with the prior year, the continued use of scheme interest income was approved to ensure the financial sustainability of ATSIHPBA.

Statement of comprehensive income for the year ended 30 June 2019

Continuing operations Income from transactions	Note	2019 $'000	2018 $'000
Registration fee income	A1	193,499	174,290
Interest income	A2	5,085	4,939
Other income	A3	4,634	5,587
Total income from transactions		203,218	184,816
Continuing operations Expenses from transactions	Note	2019 $'000	2018 $'000
Board and committee sitting fees	A4	6,236	6,009
Legal and notification costs	A4	11,090	11,900
Office of the Health Ombudsman (OHO, in Queensland)	E5	7,188	4,222
Accreditation expenses (external)	A4	9,676	9,484
Staffing costs	A4	125,045	115,716
Travel and accommodation	A4	7,334	6,985
Systems and communications		10,897	9,650
Property expenses		9,097	9,350
Strategic and project consultant costs		1,682	2,159
Depreciation and amortisation	B5(1)	3,465	4,207
Administration expenses	A4(1)	17,321	16,893
Total expenses from transactions		209,031	196,575
Net result for the year		-5,813	-11,759
Comprehensive result		-5,813	-11,759

Balance sheet as at 30 June 2019

Current assets	Note	2019 $'000	2018 $'000
Cash and cash equivalents	C1	10,170	5,292
Investments	C2	64,000	54,000
Prepayments		1,789	3,290
Receivables	B2	1,551	4,083
Accrued income	A2	861	1,151
Leased assets	C4	534	532
Total current assets		78,905	683,48
Non-current assets	Note	2019 $'000	2018 $'000
Long-term investments	C2	110,000	112,000
Leased assets	C4	3,953	4,475
Plant and equipment	B4	11,117	11,161
Intangible assets	B5	4,155	438
Total non-current assets		129,225	128,074
Total assets		208,130	196,422
Current liabilities	Note	2019 $'000	2018 $'000
Payables and accruals	B3	15,865	12,307
Income in advance	A1	96,222	85,049
Employee benefits	D1	18,616	14,753
Lease liability	C4	1,284	1,284
Total current liabilities		131,987	113,393
Non-current liabilities	Note	2019 $'000	2018 $'000
Employee benefits	D1	3,990	3,537
Lease liability	C4	8,471	9,755
Make good provision	C4(1)	817	741
Total non-current liabilities		13,278	14,033
Total liabilities		145,265	127,426
Net assets		62,865	68,996
Equity	Note	2019 $'000	2018 $'000
Contributed capital	C3	43,895	43,895
Accumulated surplus	C3	18,970	25,101
Total equity		62,865	68,996
Commitments	C5
Contingent assets and liabilities	B6

This statement should be read in conjunction with the accompanying notes that are in the full version of the annual report.

Statement of changes in equity for the year ended 30 June 2019

	Note	Contributed capital $'000	Accumulated surplus $'000	Total equity $'000
Balance at 1 July 2017		43,895	36,860	80,755
Net result for the year			-11,759	-11,759
Balance at 30 June 2018		43,895	25,101	68,996
Change in accounting policy	E1(9)		-318	-318
Restated balance at 1 July 2018		43,895	24,783	68,678
Net result for the year			-5,813	-5,813
Balance at 30 June 2019	C3	43,895	18,970	62,865