Note 1.1 Expenses

FINANCIAL PERFORMANCE

This section analyses the financial performance of Comcare for the year ended 30 June 2016

 

Note 1.1: EXPENSES

  2016
$'000
2015
$'000
1.1A Employee benefits
Wages and salaries 49,756 48,578
Superannuation
   Defined contribution plans 5,833 5,336
   Defined benefits plans 3,740 4,100
Leave and other entitlements 6,884 5,391
Separation and redundancies 406 198
Other 1,182 1,352
Total employee benefits 67,801 64,955
 

Accounting Policy

Accounting policies for employee related expenses is contained in the People and Relationships section.

 

       
1.1B Supplier expenses
Goods and services supplied or rendered
Consultants 2,602 2,637
Legal expenses 2,962 2,573
Contractors 7,595 6,475
Assurance services 1,199 1,139
Education and conference delivery 337 966
Information communication technology 5,555 4,851
Property services 1,449 1,253
Travel 2,000 2,056
Other 3,884 2,254
Total goods and services supplied or rendered 27,583 24,204
Goods supplied 804 846
Services rendered 26,779 23,358
Total supplier expenses 27,583 24,204
Other supplier expenses
   Operating lease rentals in connection with
      Minimum lease payments 6,048 6,199
Total other supplier expenses 6,048 6,199
Total supplier expenses 33,631 30,403

Leasing commitments

Comcare in its capacity as lessee currently has eight agreements. Seven lease agreements relate to office accommodation with lease payments subject to regular increases in accordance with rent reviews and pre-determined percentage increases. The final lease agreement relates to motor vehicles provided for investigations.

The remaining period of the lease agreements is between 1-2 years with an option to renew subject to negotiation on lease. Operating leases included are effectively non-cancellable.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within 1 year 6,639 6,655
Between 1 to 5 years 24,374 21,334
More than 5 years 5,932 11,664
36,945 39,653

Accounting Policy

An operating lease is a lease where the lessor retains substantially all risks and benefits in the underlying asset.
Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived.

 

1.1C Depreciation and amortisation
Depreciation
   Property plant and equipment 3,882 5,391
Total depreciation 3,882 5,391
Amortisation
   Intangibles - computer software 1,780 2,225
Total amortisation 1,780 2,225
Total depreciation and amortisation 5,662 7,616
1.1D Finance costs
Unwinding of discount 101 61
Total finance costs 101 61
       

Accounting Policy

Accounting policies for depreciation and amortisation are contained in the Non-Financial Assets section.
All borrowing costs are expensed as incurred.

 

1.1E Workers' compensation claims expense
Workers' compensation claims expenses paid and payable (net) 259,185 276,300
Add/(less): Movement in workers' compensation claims provision (62,600) 51,796
Total workers' compensation claims expense 196,585 328,096
Premium claims expense
Incapacity 140,935 152,631
Legal, including common law 13,312 12,384
Medical, travel and other 79,992 80,776
234,239 245,791
Less: Recoveries from third parties (4,000) (2,166)
230,239 243,625
Add: Movements during reporting period:
   Premium claims provision (66,900) 91,099
Recoveries receivable (900) 1,470
(67,800) 92,569
Total premium claims expense 162,439 336,194
Pre-premium claims expense
Incapacity 14,579 16,398
Legal, including common law 631 604
Medical, travel and other 13,736 15,854
28,946 32,856
Less: Recoveries from third parties - (181)
28,946 32,675
Add: Movements during reporting period:
   Pre-premium claims provision 5,200 (40,773)
Total pre-premium claims (release)/expense 34,146 (8,098)
1.1F Common law asbestos related disease claims expense
Common law asbestos related disease claim payments 22,594 17,128
Add/(less): Movements during reporting period:
   Asbestos claims provision (6,440) 101,080
   Recoveries receivable (6,300) (66,920)
(12,740) 34,160
Total common law asbestos related disease claims expense 9,854 51,288

 

 

Note 1.2: OWN-SOURCE INCOME

  2016
$'000
2015
$'000
Own-Source Revenue
1.2A Sale of Goods and Rendering of Services
Sale of goods 1 1
Rendering of services 19,530 20,755
Total sale of goods and rendering of services 19,531 20,756
1.2B Fees and Fines
Licence fees 17,416 16,241
Total fees and fines 17,416 16,241
1.2C Workers' compensation premiums
Related entities 316,332 397,642
External entities 98,334 94,116
Total workers' compensation premiums 414,666 491,758
1.2D Interest
Interest 27,554 26,164
Total interest 27,554 26,164

Accounting Policy

Interest revenue is recognised using the effective interest method as set out in AASB139 Financial Instruments: Recognition and Measurement.

       
1.2E Net reversal of write-downs and impairment
   Revaluation of property, plant and equipment 186 -
Total net reversal of write-downs and impairment 186 -
1.2F Gains/(losses) from asset sales
Property, plant and equipment
   Proceeds from sale 18 7
   Carrying value of assets disposed (6) (6)
   Selling expense - (2)
Total gains/(losses) from asset sales 12 (1)
1.2G Revenue from Government
Department of Employment
   Corporate Commonwealth entity payment item 7,727 7,563
   Grants from Portfolio Department 58,440 57,796
   Add: Available funding from movement in claims provisions 20,372 26,503
Total revenue from Government 86,539 91,862

Accounting Policy

Revenue from Government
Funding received or receivable from the Department of Employment is recognised as Revenue from Government unless they are in the nature of an equity injection or a loan.