Group Parent
2019
Actual 2018
Actual 2019
Actual 2018 Actual
$000 $000 $000 $000
Current assets 1,488 1,435 1,488 1,435
Non-current assets 3,817 2,774 3,817 2,774
Current liabilities (1,303) (1,331) (1,303) (1,331)
Non-current liabilities (3,559) (2,503) (3,559) (2,503)
Net assets 443 375 443 375
Revenue 3,478 3,077 3,478 3,077
Expenses (3,410) (3,005) (3,410) (3,005)
Share of surplus/(deficit) of joint venture 68 72 68 72
12. Equity
Accounting policy
Equity is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into the following components.
• Crown equity;
• Retained earnings;
• Revaluation reserves; and
• Trust funds.
Revaluation reserves
These reserves relate to the revaluation of land and buildings to fair value.
Trust funds
Trust funds represent the unspent amount of unrestricted donations and bequests received.
Trust
Funds Crown
Equity Revaluation
Reserve Retained
Earnings Total Equity
Group
Reconciliation of movement in equity $000 $000 $000 $000 $000
Balance at 1 July 2017 282 286,737 261,188 74,469 622,676
Total comprehensive revenue/(expense) 987 - - (38,137) (37,150)
Repayment of capital to the Crown - (2,194) - - (2,194)
Transfer to restricted trust fund (942) - - - (942)
Other movement (1) - - - (1)
Balance at 30 June 2018 326 284,543 261,188 36,332 582,389
Balance at 1 July 2018 326 284,543 261,188 36,332 582,389
Total comprehensive revenue/(expense) 897 - 90,351 (120,661) (29,413)
Contributed capital - deficit support funding - 29,100 - - 29,100
Repayment of capital to the Crown - (2,194) - - (2,194)
Transfer to restricted trust fund (478) - - - (478)
Other movement - - - -
Balance at 30 June 2019 745 311,449 351,539 (84,329) 579,404
Financial statements
114
12. Equity (continued) Trust funds
The Trust funds represent the Waikato Health Trust (formerly the Health Waikato Charitable Trust) which was incorporated in 1993 as a charitable trust in accordance with the provisions of the Charitable Trust Act 1957, and registered with the Charities Commission. Under the Trust Deed the Trustees are appointed by Waikato DHB, with these Trustees acting independently in accordance with their fiduciary responsibilities under trust law.
Transactions between Waikato DHB and Waikato Health Trust are disclosed in note 29.
Parent
CrownEquity RevaluationReserve Retained
Earnings Total Equity
Reconciliation of movement in equity $000 $000 $000 $000
Balance at 1 July 2017 286,737 261,188 74,469 622,394
Total comprehensive revenue/(expense) - - (38,137) (38,137)
Repayment of capital to the Crown (2,194) - - (2,194)
Other movement - - - -
Balance at 30 June 2018 284,543 261,188 36,332 582,063
Balance at 1 July 2018 284,543 261,188 36,332 582,063
Total comprehensive revenue/(expense) - 90,351 (120,661) (30,310)
Contributed capital - Deficit support funding 29,100 - - 29,100
Repayment of capital to the Crown (2,194) - - (2,194)
Other movement - - - -
Balance at 30 June 2019 311,449 351,539 (84,329) 578,659
13. Cash and cash equivalents
Accounting policy
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments and bank overdrafts. Bank overdrafts are presented in current liabilities in the statement of financial position.
While cash and cash equivalents at 30 June 2019 are subject to the expected credit loss requirements of PBE IFRS 9, no loss allowance has been recognised because the estimated loss allowance for credit losses is trivial.
Financial assets recognised subject to restrictions
Included in cash and cash equivalents and investments are unspent funds with restrictions that relate to the delivery of health services by the DHB. Other than for trust funds, it is not practicable for the DHB to provide further detailed information about the restrictions. Further information about trust funds is provided in Note 22.
Group Parent
2019
Actual 2018
Actual 2019
Actual 2018 Actual
$000 $000 $000 $000
Cash at bank/(overdraft) and cash on hand 58 (1,311) 58 (1,311)
Advance to/(from) New Zealand Health Partnerships Limited (35,996) (9,518) (35,996) (9,518)
Trust funds 8,756 7,855 - -
Total cash and cash equivalents (27,182) (2,974) (35,938) (10,829)
Financial statements
115
Notes to the financial statements
continued
14. Receivables
Accounting policy
Short-term receivables are recorded at the amount due, less an allowance for credit losses. Bad debts are written off during the period in which they are identified. The simplified expected credit loss model of recognising lifetime expected credit losses for receivables has been applied.
In measuring expected credit losses, receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the type of receivable and days past due. The expected loss rates are based on the payment profile of transactions over a period of 24 months before 30 June 2019 and the corresponding historical credit losses experienced within this period.
Receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the length of time the balance remains outstanding.
Previous accounting policy for the impairment of receivables:
In the previous year, the allowance for credit losses was based on the incurred credit loss model. An allowance for credit losses was only recognised when there was objective evidence that the amount would not be fully collected.
Group Parent
Ministry of Health trade receivables 3,508 4,242 3,508 4,242
Other trade receivables 8,216 6,805 8,216 6,775
Less: Allowance for credit losses (1,234) (1,133) (1,234) (1,133)
Total trade receivables 10,490 9,914 10,490 9,884
Ministry of Health accrued revenue 19,287 17,683 19,287 17,683
Other accrued revenue 18,580 22,996 18,553 22,996
Total receivables 48,357 50,593 48,330 50,563
Total receivables comprises:
Receivables from non-exchange transactions 18,786 9,466 18,786 9,466
Receivables from exchange transactions 29,571 41,127 29,544 41,097
The expected credit loss rates for receivables at 30 June 2019 and 1 July 2018 are based on the
payment profile of invoices issued over the past 2 years at the measurement date and the corresponding historical credit losses experienced for that period. The historical loss rates are adjusted for current and forward looking macroeconomic factors that might affect the recoverability of receivables.
There have been no changes during the reporting in the estimation techniques or significant assumptions used in measuring the loss allowance.
The allowance for credit losses at 30 June 2019 was determined as follows:
Receivables days past due
Group
Current More than 30 days More than60 days More than
90 days TOTAL 30 June 2019
Expected Credit Loss Rate 0.26% 27.23% 14.11% 56.94%
Gross Carrying Amount ($000) 47,163 437 333 1,658 49,591
Lifetime expected credit loss ($000) 124 119 47 944 1,234
1 July 2018
Expected Credit Loss Rate - 4.78% 1.11% 57.73%
Gross Carrying Amount ($000) 44,316 2,195 3,502 1,713 51,726
Lifetime expected credit loss ($000) - 105 39 989 1,133
Financial statements
116
14. Receivables (continued)
Receivables days past due
Parent
Current More than 30 days More than60 days More than
90 days TOTAL 30 June 2019
Expected Credit Loss Rate 0.26% 27.23% 14.11% 56.94%
Gross Carrying Amount ($000) 47,136 437 333 1,658 49,564
Lifetime expected credit loss ($000) 124 119 47 944 1,234
1 July 2018
Expected Credit Loss Rate - 4.78% 1.11% 57.73%
Gross Carrying Amount ($000) 44,286 2,195 3,502 1,713 51,696
Lifetime expected credit loss ($000) - 105 39 989 1,133