The Common Chart of Accounts has been revised for 2005-06. as a result, the mapping of accommodation payments to the account codes specified in Circular 6/2005 is no longer valid.
Bond Retention, Bond Interest and Accommodation Charges must initially be treated as capital purpose income in the capital fund.
These revenues should be applied firstly to capital works and secondly for the retirement of debt relating to residential care as prescribed by the Aged Care Act 1997.
Where capital expenditure reasonably necessary to comply with the certification principles and meeting accreditation requirements is less than the amount received as capital purpose income, the balance of these accommodation payments can be used to improve the quality and range of aged care services. At this point the nature of the income changes from capital to operating. It is appropriate at that time (not before) to classify the income as operating revenue in order to match the expenses incurred.
As these revenues are used for aged care services as prescribed, these should be reported in the 50351 - 50399 revenue range under the X0000 series of cost centres. Additionally, accommodation payments include residential aged care accommodation supplements. These should be reported in the 51601 – 51699 revenue range under the X0000 series of cost centres. If the nature of these revenues changes from capital to operating, the J0000 and J2000 series of cost centres should be used.
This policy is effective from 1 st July 2005.
For queries on the above matters please contact: Victor Liew on Tel (03) 9616 7450 or Email firstname.lastname@example.org