WORKERS’ COMPENSATION SUPPLEMENTATION FUND
Objectives
The ACT Workers’ Compensation Supplementation Fund (the Fund) is established pursuant to the Workers’ Compensation Supplementation Fund Act 1980 (the Act).
The purpose of the Fund is to accept responsibility for the payment of workers’ compensation claims and settlements in the event that an insurance company fails or is unable to meet its liabilities arising from workers’ compensation insurance policies and to achieve the best possible return from the liquidation process.
2005‑06 Highlights
Strategic and operational issues to be pursued in 2005‑06 include:
•	managing the reduction in the number of claims on the Fund while ensuring that all claimants are treated fairly and receive appropriate entitlements;
•	monitoring the management of claims to ensure the use of best practice claims management strategies;
•	providing accurate information to the liquidator to ensure that the Fund can make its claim in the liquidation; and
•	producing updated reports to the Government on projected liability and reserving strategy.

Workers Compensation Supplementation Fund	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
962		Interest	962	627	-35	478	379	321		
0		Other Revenue	3  734	0	-100	0	0	0		
962		Total Revenue	4  696	627	-87	478	379	321		
		Gains								
0		Total Gains	0	0	-	0	0	0		
962		Total Income	4  696	627	-87	478	379	321		
		Expenses								
170		Supplies and Services	178	178	-	178	105	64		
0		Other Expenses	1  440	0	100	0	0	0		
170		Total Ordinary Expenses	1  618	178	-89	178	105	64		
792		Operating Result	3  078	449	-85	300	274	257		

Workers Compensation Supplementation Fund	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
159		Cash	389	413	6	619	759	940		
299		Receivables	307	228	-26	191	184	177		
12  791		Investments	15  003	7  126	-53	5  172	4  090	3  432		
14		Other	0	0	-	0	0	0		
13  263		Total Current Assets	15  699	7  767	-51	5  982	5  033	4  549		
13  263		TOTAL ASSETS	15  699	7  767	-51	5  982	5  033	4  549		
		Current Liabilities								
4  465		Payables	3  440	2  144	-38	1  282	800	521		
4  465		Total Current Liabilities	3  440	2  144	-38	1  282	800	521		
		Non Current Liabilities								
11  450		Payables	5  383	3  298	-39	2  075	1  334	872		
11  450		Total Non Current Liabilities	5  383	3  298	-39	2  075	1  334	872		
15  915		TOTAL LIABILITIES	8  823	5  442	-38	3  357	2  134	1  393		
-2  652		NET ASSETS	6  876	2  325	-66	2  625	2  899	3  156		
		REPRESENTED BY FUNDS EMPLOYED								
-2  652		Accumulated Funds	6  876	2  325	-66	2  625	2  899	3  156		
-2  652		TOTAL FUNDS EMPLOYED	6  876	2  325	-66	2  625	2  899	3  156		

Workers Compensation Supplementation Fund	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
860		Interest Received	860	699	-19	508	379	321		
70		Other Revenue	261	74	-72	74	77	77		
930		Operating Receipts	1  121	773	-31	582	456	398		
		Payments								
170		Related to Supplies and Services	178	178	-	178	105	64		
6  467		Other	4  298	3  448	-20	2  152	1  293	811		
6  637		Operating Payments	4  476	3  626	-19	2  330	1  398	875		
-5  707		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-3  355	-2  853	15	-1  748	-942	-477		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Payments								
0		Distributions to Government	0	5  000	#	0	0	0		
0		Financing Payments	0	5  000	#	0	0	0		
0		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	0	-5  000	#	0	0	0		
-5  707		NET INCREASE/(DECREASE) IN CASH HELD	-3  355	-7  853	134	-1  748	-942	-477		
18  977		CASH AT BEGINNING OF REPORTING PERIOD	18  747	15  392	-18	7  539	5  791	4  849		
13  270		CASH AT THE END OF THE REPORTING PERIOD	15  392	7  539	-51	5  791	4  849	4  372		

Workers Compensation Supplementation Fund	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
-2  003		Opening Balance	3  798	6  876	81	2  325	2  625	2  899		
		Accumulated Funds								
792		Operating Result for the Period	3  078	449	-85	300	274	257		
		Reserves								
792		Total Income And Expense For The Period	3  078	449	-85	300	274	257		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
0		Capital (Distributions)	0	-5  000	#	0	0	0		
-1  441		Inc/Dec in Net Assets due to Admin Restructure	0	0	-	0	0	0		
-2  652		Closing Balance	6  876	2  325	-66	2  625	2  899	3  156		
Notes to the Budget Statements
Significant variations are as follows:
Operating Statement
•	interest:  the decrease of $0.335m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to a lower level of investments as a consequence of paying outstanding claims;
•	other revenue:  the increase of $3.734m in the 2004‑05 estimated outcome from the original budget is mainly due to the revaluation of the HIH insurance liability; and
•	other expenses:  the increase of $1.440m in the 2004‑05 estimated outcome from the original budget mainly reflects the transfer of the Accident Information Management System (AIMS) to ACT Workcover. 
Balance Sheet
•	cash and current investments: 
•	the increase of $2.442m in the 2004‑05 estimated outcome from the original budget reflects the timing and movement in cash and investments relating to the settlement of claims following the latest actuarial assessment of HIH and their effect on the insurance liability of the Fund; and
•	the decrease of $7.853m in 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to the return of $5m to the Territory.
•	Current and non – current payables: the decrease of $7.092m in the 2004‑05 estimated outcome from the original budget and the decrease of $3.381m in the 2005‑06 Budget from the 2004‑05 estimated outcome are due to the settlement of claims associated with HIH and the reduction of the estimated liabilities.