Professional Services Review Annual Report 2004–05

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Appendixes

Appendix 1: Financial statements

Note 4–Operating Revenues

Note 4A–Revenues from Government
2004–2005 $ 2003–2004 $
Appropriations for outputs 7,772,000 7,598,000
Total Revenues from Government 7,772,000 7,598,000
Note 4B–Sales of goods and services
2004–2005 $ 2003–2004 $
Goods 2,309 2,531
Services - -
Total Sales of goods and services 2,309 2,531
Provision of goods to:
Related entities - -
External entities 2,309 2,531
Total sales of goods 2,309 2,531
Costs of sales of goods 2,309 2,531
Note 4C–Revenue from sale of assets
2004–2005 $ 2003–2004 $
Infrastructure, plant and equipment:
Proceeds from disposal 18,571 -
Less: Net book value of assets disposed 17,272 -
Less: Write-offs of assets - -
Net gain/(loss) from disposal of infrastructure, plant and equipment 1,299 -
Total revenue from sale of assets 18,571 -
Total value of assets disposed 17,272 -
Total Net gain/(loss) from disposal of assets 1,299 -
Note 4D–Other revenues
2004–2005 $ 2003–2004 $
Other revenue 15,132 -
Court costs recovered from persons under review 200,954 -
Resources received free of charge 7,250 6,200
Total Other revenues 223,336 6,200
Note 4E–Prior period prepayment adjustment
2004–2005 $ 2003–2004 $
Prior period prepayment adjustment - 210,000
Total Prior period prepayment adjustment - 210,000

During 2003–04 it was identified that in previous financial years Professional Services Review has understated prepaid expenses. In 2000-01 Professional Services Review expensed an amount of $420,000 that represented a prepayment to the Department of Health and Ageing for SAP maintenance for 6 years, to be expensed at $70,000 per year.

The result of this error has had an impact on each of the subsequent years accounts. In 2000-01 there was an overstatement of expenses and understatement of prepaid expenses to the extent of $350,000. Subsequent years expenses have been understated by $70,000 per year, with a corresponding understatement of prepaid expenses. The balance of the prepaid expense to be recognised at 30 June 2004 is $210,000.

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