is invested across a minimum of two ‘AAA’ rated banks and products with an appropriate spread of maturity dates to meet AHA’s planned and unplanned requirements. FINANCIAL OVERVIEW 16-17 AHA’s liabilities of $3.5 million includes GST and accounts payable of $1.3 million which has increased in line with AHA policy to pay invoices when due, rather than immediately upon receipt of invoice and accruals of $2.2 million. The substantial amount of accrued expenses relates to the sample collection and laboratory costs for National Arbovirus Monitoring Program (NAMP) and TSEFAP where work undertaken for the disease cycles in the financial year isn’t finalised until several months after the end of the cycle (consistent with prior years). Provisions for annual and long service leave and salary related payables amounts to $0.37 million. Unearned revenue of $4.8 million represents the balance of cash received by AHA, primarily from government Members, for which project milestones have not yet been delivered, and therefore not yet recognised as revenue in the income statement. AHA’s net assets dichotomy of ‘core’ ($5.7 million) and industry levy Member ($10.7 million) can also be considered separately in terms of their asset and liability elements. The industry levy Member equity reserve is comprised solely of current asset – cash of $10.7 million. On the other hand, the core equity reserve is comprised of all the current and noncurrent asset and liability components. Notably this core equity can be expressed in net asset terms of $3.6 million antigen banks (at cost), $0.3 million office equipment, and $1.8 million cash. AHA’s core reserve, contingency, and treasury policies ensure AHA operates with fiscal prudence. Members acknowledged at the March 2017 Members’ Forum the Board’s intention to maintain and grow the real value of the core cash reserve through the retention of interest (at a minimum). 3 Core subscriptions increased for the first time in six years in 2016-17, by 6% upon the recommendation of Members at the November 2015 Members Forum, at which it was highlighted the importance of properly resourcing AHA’s core programs. ANNUAL REPORT 2016-17 11 1 $15.5m TOTAL INCOME $1.6m $ SERVICE LEVEL AGREEMENTS 2 $13.7m TOTAL EXPENDITURE $1.8m $ SURPLUS 3 $4.2m CORE SUBSCRIPTIONS 0.34m INTEREST INCOME 6.9m LEVY INCOME
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