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KAMSC accounting section continued to provide support to member Aboriginal Medical Services (AMS) during the year.
This involved not only the preparation of annual financial statements but also interim financial reports and acquittals of funding agreements, and management reporting to the AMS boards.
Accounting staff also supported AMS bookkeepers and accounts staff through telephone assistance, as well as several on-site visits by accountants, the payroll/HR officer and salary sacrifice officer.
The introduction of the International Financial Reporting Standards (IFRS) had a significant impact on both the preparation of annual financial statements and the reported results of KAMSC and the AMSs in 2005/2006. The new accounting standards were applied to prior year annual financial results in order to provide appropriate prior year comparative figures for the 2005/2006 statements.
One effect of the application of IFRS was the reduction in the reported net asset value of the KAMSC and AMS’s as a group from $20.6m as reported at 30 June 2005 to an IFRS adjusted net asset position of $18.7m. The net asset position as at 30 June 2006 was $18.9m which shows a modest increase for the group. KAMSC had reported in its pre-IFRS figures a net asset value of $5.4m as at 30 June 2005. The IFRS adjusted figure is $4.0m. KAMSC increased its net asset position to $4.4m at 30 June 2006, approximately an 11% increase.
KAMSC expenditure on salaries and wages also increased by 11% over 2005/2006, with the KAMSC and AMS group showing an overall increase in salaries and wages expenses of 11.6% to a total of $15.7m expenditure on salaries, wages & related employee costs.
Overall recurrent expenditure for KAMSC (including employee costs) dropped during 2005/2006 by approximately 12%, whereas the overall group increased recurrent expenditure by 6%.
There was a substantial drop off in capital activity during 2005/2006 which is expected after the huge surge of activity in previous years. Capital expenditure dropped from $9.9m in 2004/2005 to $1.3m in 2005/2006.
Taking on the Kutjungka region clinics at Balgo, Billiluna and Mulan has increased the processing tasks within the accounting office, impacting not only on accounts payable functions but also payroll and salary sacrifice tasks.
There has been an increase in the number of staff taking part in the salary sacrifice / flexible remuneration system. This has largely come about through increased awareness of the financial benefits of participating in salary sacrifice.
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