Quick Links

• Circulars
• PHIAC Annual Report
• Registered Funds
• Frequently Asked Questions for Consumers
• The Operations of  Private Health Insurers Annual Report
• Latest Industry Statistics
• Consultation Opportunities
• Whistleblowers     
• Private Health Insurance Consumer Information Website
• Reconciliation Action Plan
• FOI

Circular No 60

General PHIAC Circulars

Circular No 60

Contact Officers:
Trish Cassidy (02) 6285 3134

31 May 1996

STATEMENT OF REQUIREMENTS FOR REPORTING TO PHIAC

A review of past PHIAC 2 and Annual Returns submitted by organisations has highlighted a number of accounting issues which should be considered when preparing future returns. An additional copy of the Statement of Requirements for Reporting to PHIAC by Registered Health Benefits Organisations ("the Statement") previously forwarded with Circular 44, (see Circular 67 for current copy), together with a further statement which summarises additional reporting requirements including those forwarded with Circular 8.

Public Officers are requested to ensure that their operational staff have an understanding of the reporting requirements, and are also urged to bring these requirements to the attention of their auditors at the time of preparation of Annual Reports.

Specific issues which have arisen are as follows:-

1. Balance sheets which do not balance.
2. Inconsistency between reserves and asset amounts shown from one Schedule of the return to another.
3. Adding errors.
4. Inconsistency between the summary information shown for investments in Schedule 4 with the detailed information disclosed at Schedule 5.
5. Accounting for revaluation increments and decrements, and disposals in accordance with AASB 1010.
6. Investments which are not shown at net market value.
7. Disclosure of Prescribed Company Assets and Other Assets not Acceptable for Solvency Purposes.
8. Inconsistency between closing balances in one period, and opening balances in the next. Where these adjustments occur a summary of amendments should be appended to the return, for the purpose of continuity of reporting.
9. Inadequate review of provisions from period to period, taking into account the issues discussed at 3.3.9 of the Statement.
10. Annual charging of management expenses (eg depreciation), rather than quarterly as is required by 3.3.10 of the Statement.
11. Exclusion of current liabilities from Liquidity Calculation, and inclusion of assets which are not readily convertible to cash. A guide of those assets and liabilities which would normally be included in this calculation are shown in Annexure "A" to this Circular.
12. Returns and amendments to returns which have not be signed or endorsed by the Public Officer.
13. Set-off of loans from prescribed companies against prescribed assets for the purpose of the solvency calculation.

Public Officers are also requested to ensure that quarterly and annual returns are submitted on a timely basis in accordance with the provisions of Section 82L of the National Health Act 1953. Applications for extensions of time within which to submit reports should be made in writing prior to expiry of the limits specified by Section 82L.

Attachment : Annexure A

Top of Page