Annual Report 2016-2017

Accounting Policy

Accounting policies for employee related expenses is contained in Section 4 – Governance, Employees and Relationships.

Note 1.1B: Suppliers
Services rendered
Travel		7,801		5,382
Contractors and consultants		150,070		61,972
Memorandum of Understanding costs^1		40,966		17,529
Information technology expenses		1,651		644
Property operating expenses		11,142		3,241
Staff recruitment and relocation		2,534		2,892
Other		20,703		10,656
Total services rendered		234,867		102,316
Other suppliers
Minimum lease payments		24,978		10,793
Workers compensation expenses		2,808		1,381
Total other suppliers		27,786		12,174
Total suppliers		262,653		114,490
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Within 1 year		11,466		6,776
Between 1 to 5 years		31,145		14,289
More than 5 years		15,580		7,267
Total operating lease commitments (inc. GST)		58,191		28,332
Less GST recoverable on operating lease commitments		(5,290)		(2,576)
Net operating lease commitments		52,901		25,756
^1	The Agency has in place Memoranda of Understanding that cover the provision of various administrative and operational support services by the Department of Human Services and the Department of Social Services.

Leasing Commitments

The Agency has operating leases over the following assets:

1. 
   Property leases – lease payments subject to increases in accordance with CPI or other agreed increment with initial periods of between 1 and 10 years. Some leases have options to extend.
   
2. 
   Motor Vehicles – operating leases over periods up to 36 months that do not have contingent rentals and do not have purchase options available at the end of the lease.
   

The Agency does not have any significant leasing arrangements in its capacity as a lessor.

Accounting Policy

Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease and where the lessor effectively retains substantially all such risks and rewards. The Agency has not entered into any leasing arrangements that are required to be classified as finance leases.

Operating lease payments are expensed on a straight-line basis over the life of the lease, which is representative of the pattern of benefits derived from the leased assets.

	2017		2016
Note 1.1C: Grants	$'000		$'000
Public sector
State and territory governments	16,117		1,939
Private sector
For profit organisations	538		-
Not for profit organisations	22,449		7,019
Total grants	39,104		8,958
The Agency provides a range of grants to the disability sector and the community in order to promote improved outcomes for people with a disability, their families and their carers. These grants relate to a range of projects including disability research, increased social and community participation, innovation and education.

Note 1.1D: Write-down and impairment of assets
Trade and other receivables	825		78,693
Intangible assets	-		3,102
Property, plant and equipment	1,371		283
Participant Advances	4,727		-
Total write-down and impairment of assets	6,923		82,078

	2017		2016
	$'000		$'000
Note 1.1E: Community partnership costs
Early Childhood Early Intervention costs	25,302		-
Local Area Coordination costs	100,385		21,514
Total Community partnership costs	125,687		21,514

Early Childhood Early Intervention Costs

Early Childhood Early Intervention Costs are incurred by the Agency by engaging Early Childhood partners across the nation with the intention of providing quicker and easier supports to children aged between 0-6 years who have a disability or have concerns regarding their development. Expenses from this stream have commenced in the 2016-17 financial year.

Local Area Coordination Costs

Local Area Coordination costs consists of the expenses incurred in funding selected providers of Local Area Coordination services. Arrangements with providers will differ in form and content, according to the Agency’s needs.

Local Area Coordinators are required to deliver several types of services including:

• 
  Provision of support to prospective participants to engage with the Scheme, including community awareness;
  
• 
  Support scheme participants with implementation of their plans; and
  
• 
  Support scheme participants with full scheme planning and plan reviews.
  

Accounting Policy

The costs associated with community partnerships are recognised in accordance with contractual arrangements.

Note 1.1F: Participant plan expenses
Claims received from participant and providers	1,472,761		479,209
Cost of services received in-kind Other movements reflected in participant plan provisions	475,634		190,706
	289,752		52,764
Total participant plan expenses	2,238,147		722,673

Accounting Policy

The costs associated with participant plan expenses are recognised as and when the Agency receives claims from participants and providers. Accounting policies for expenses resulting from adjustment to the participant plan provision is contained in Section 2.4 – Other Provisions.

30.2.Own-Source Revenue and Gains

OWN SOURCE REVENUE	2017		2016
	$'000		$'000
Note 1.2A: Revenue from rendering of services
Rendering of services in connection with
Related parties - contributions from Department of Social Services	6,089		10,231
External parties - contributions from state and territory governments	1,376,526		276,676
Total revenue from the rendering of services	1,382,615		286,907