Table of Contents
Contents About Corryong Health ...... 2 Board Chair – Year’s Reflections and Our Future ...... 3 Chief Executive Officer - The Year in Review ...... 4 Board of Directors ...... 5 Responsible Ministers ...... 5 Senior Staff ...... 6 Organisational Structure ...... 8 Hospital Auxiliary Presidents Report ...... 9 Corryong Community Health Advisory Group ...... 9 Environmental Performance ...... 10 Celebration of staff years of service ...... 10 Donations and Contributions ...... 11 Occupational Health and Safety ...... 12 Occupational Violence ...... 13 Consultancies ...... 13 Information & Communication Technology (ICT) expenditure ...... 13 Additional information available on request ...... 14 Workforce Data Disclosure ...... 15 Comparative Financial Analysis ...... 15 Reconciliation between the Net Result from transactions reported in the financial statements to the operating result ...... 16 Multi-Purpose Performance Priorities ...... 16 Operational & Budgetary Objectives & Performance against Objectives ...... 19 Services provided by Corryong Health ...... 24 Legislation and Disclosures ...... 25 Attestations ...... 28 Disclosure Index ...... 30
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About Corryong Health
Our Vision: Together strengthening the health of our community.
Our Purpose: To provide a comprehensive range of healthcare services to all people, at all stages of life, contributing to a strong, viable community.
Our Role: Through professional trustworthy health services, we will grow our local community capacity and ability to connect and inform people
Our Values: • The sense of community – Our community places trust in us (Corryong Health) and this must be reciprocated – with respect, compassion and through our inclusive relationships • Equity and Fairness – Adapting to meet individuals’ needs and being transparent in our approach • Growth and Development – We do our best to learn and promote a learning culture, insuring the highest contemporary standards of service for our clients • Professionalism – We provide non-judgmental, confidential, effective and efficient health care
Objectives, functions, powers and duties of the Health Service The purpose of the Health Service is to:
1. Operate a public hospital in accordance with the Act, and any enabling Commonwealth or Victorian legislation, including the provision of the following services:
a. Public hospital services;
b. Primary health services;
c. Aged care services; and
d. Community health services.
2. Provide a range of health and related services ancillary to those services described in clause 1;
Carry on any other activity or business that is convenient to carry on in connection with providing the services described in clauses 1 and 2, or which are intended or calculated to make any of the Health Service’s assets or activities more efficient and effective.
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Board Chair – Year’s Reflections and Our Future
Corryong Health plays a vital role in our remote area of Victoria. We provide essential medical, allied health and aged care services to a community that deserves the very best care possible. In addition, Corryong Health is one of the largest employers in the Upper Murray area. As such we need to have a clear idea of where we have come from in the past and where we are going in the future.
Never have health and aged care providers been under closer scrutiny, and rightly so. Practices brought to light by Royal Commissions and other enquiries highlight that health service providers as a whole need to be much more accountable and not fail their communities. Corryong Health aims to continue to provide high quality services.
Our major strategies and goals over the next five years can be summarised as follows: • To offer a variety of accessible services to ensure people can stay in their own homes and the community wherever possible • To provide data driven customer services, productivity and quality services • To attract a capable, available and professionally developing workforce • To ensure financial, infrastructure and environmental sustainability • To improve what we do through the innovative use of digital application, behaviours and partnerships with other agencies
Underpinning these strategies is an accurate reflection of what is important for the community we serve. This has been achieved through extensive community consultation and engagement with partner agencies, staff and funders.
The Board of Directors is very proud of the work all of our staff do and the positive impact they have on many lives on a daily basis. This is despite the significant events of 2019/2020 notably the bushfires and the COVID-19 Pandemic. We are committed to supporting the executive team, all other members of staff and our volunteers to achieve the challenging goals set out.
Richard Bennetts Board Chair
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Chief Executive Officer - The Year in Review
Our staff and volunteers are passionate, committed and dedicated to improving the health of our clients. As an organisation, we are committed to developing and growing our people to respond to the challenges ahead. This is through ensuring that our values are reflected by our behaviours and actions.
Corryong Health values – • The sense of community • Equity and Fairness • Growth and Development • Professionalism
It is through living these values and behaviours that we will enable our service to respond to the changing health and community needs in this rural and remote region; address cross-border challenges; and apply an integrated regional approach that bridges tyranny of distance faced by our community when accessing partner health services.
2019/2020 has been a particularly challenging year due to the devastation caused by the bushfires to our region which affected each and every staff member and community member. Further, the COVID-19 pandemic has hindered bushfire recovery through making social connectedness difficult to achieve. Despite these challenges, I am amazed at the resilience of the staff who have remained committed to the achievement of health outcomes and care of the community.
Corryong Health has a proud history and a well-established multi-purpose service model that recognises the importance of general practice in bringing together a comprehensive client-centered service. We recognise the need to embrace our strengths and be honest and open in acknowledging and addressing our weaknesses in order to thrive as a health service.
We must also look beyond our existing service models and explore innovation through our regional partnerships and digital capability to respond to the future challenges over the next five years through our new strategic plan.
I am both humbled and excited to lead Corryong Health into this new era. I am constantly reminded of the important role Corryong Health must play in contributing to a strong and vibrant community. I also have every confidence in our collective ability to achieve great outcomes against the challenging goals set in our strategic plan.
Dominic Sandilands Chief Executive Officer 4
Board of Directors
Board Director’s Year joined board Committees name Deborah Culhane 1stJuly 2018 – current. Community Health Advisory Group Board Chair from August Clinical Aged Care & Governance 2020 Quality and Safety Richard Bennetts 1st July 2018 – July 2020 Audit (Board Chair) Infrastructure & Management Rhonda Ruddick 1st July 2010 – 30th June Community Health & Service Development (Treasurer) 2020 Quality Safety Risk Clinical & Aged Care Governance Compliments & Complaints Morbidity & Mortality Ilea Buffier 1st July 2019 – current Chair Finance & Audit
Frank Evans 1st July 2019 - current Chair Quality & Safety Sue Sullivan 1st July 2011 – 30th June Community Health Advisory Group 2020 Compliments & Complaints Audit Ashley Brown 1st July 2011 – 30th June Audit 2020 Infrastructure & Asset Management Susan Owens 26th November 2019 – Finance & Audit 30th June 2020
Responsible Ministers
Jenny Mikakos MP, Minister for Health Minister for Ambulance Services
Martin Foley MP, Minister for Mental Health
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Senior Staff
Chief Executive Officer: From January 2019 Dominic Sandilands FCHSM, GAICD, MBM GCert.ACE, Ba App Sci (pod)
Director of Corporate Services: Ceased February 2020 Ian Bruce Voc Grad Cert in Ed & Training for sustainability, Adv, Dip Farm Management, Dip Teaching, Grad Cert. Irrigation, Cert IV in T&A
Director of Clinical Services: Ceased March 2020 Mel Steen Bachelor of Health Science (RN), Masters in Quality Safety Healthcare Management
Interim Director of Nursing: From March 2020 Sharon Edmondson Bachelor of Nursing, Graduate Diploma of Health Services Management
Acting Director of Clinical Services: From March 2020 Vicki Pitcher Bachelor of Arts (Psychology) – University of Melbourne, Graduate Diploma of Education – La Trobe University, Graduate Diploma of Computing – La Trobe University
Chief Finance Officer: Kerrie Clarke CPA, Bachelor of Business (Accounting/Finance)
Quality Safety Risk Manager Mrs Nicole Martin Bachelor of Health Science – Occupational Therapy, Diploma of Management
Director of Medical Services: Dr Pat Giddings OAM, MBBS, MHM, FRACGP, FACRRM, DRANZCOG, FAICD
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Senior Medical Officers: Dr Paul Dodds MBBS (Hons) (MON), FACRRM, DRANZOG
Dr Nicholas Mason MBBS (Hons), B.Med. Sci, DRANZCOG
Dr Hannah Mason MBBS, B.Med. Sci, DRANZCOG MPH.
Dr Gracie Pun MBBS, FRACGP, BMEDSCI
Dr Mary-Anne Lancaster MBBS, FRACGP, DRANZCOG
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Organisational Structure
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Hospital Auxiliary Presidents Report It’s my pleasure to present my report. We have 16 members and without these wonderful ladies we would not be able to buy the great things for our hospital.
Due to Covid-19 restrictions, we have only had 5 stalls which brought in $5,761.
Our biggest contribution to Corryong Health for the year was the purchase of “Betty” the training doll at $9,013.
Now to the sad side, I will not be putting my name forward for President this year as I am not well enough.
Once again, thank you for your love and support.
Sandra Benton - 2019/2020 President
Corryong Community Health Advisory Group In 2019/2020 the Community Health Advisory Group (CHAG) has revised its terms of reference to be the voice of the community to Corryong Health, and to be the voice for Corryong Health to the community.
Their responsibilities include:
• Informing the community – Sharing the knowledge of CHAG and promoting the existing services of Corryong Health. Also ensuring there is up to date information for the community, and that community members understand this information • Advise - Corryong Health on consumer, carer and community views so they are recognised and reflected in service delivery, planning and policy development • Foster community relationships – Develop ways to pursue relationships and increase community participation. • Review – To review documentation from Corryong Health • Opportunity surveillance - CHAG and Executive exploring funding and partnership opportunities. • Skills development – Increasing the capability of CHAG members through training and education.
The CHAG has successfully and extensively consulted with the community on the new strategic plan. Further significant achievements include, the successful completion of the Safer Care Victoria Partnering with Consumers Plan in the following domains:
• equity and inclusion • shared decision making
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Environmental Performance Corryong Health has undertaken a number of initiatives to improve its environmental performance 2019/20. These include: -
• Continue with replacement of LED lights. • Continue with upgrading air conditioning units and cleaning the filters. • Maintaining waste management systems to reduce landfill. • Improved clinical waste management. • Continued use of non-chemical cleaning agents incorporating microfibre cloths to reduce environmental impact. • Progressive installation of double-glazed windows to assist with reduction in energy costs. • Continued exploration of procurement for solar upgrades. • Commencement of switchboard upgrade across Hospital facilities, this includes capacity to monitor energy usage.
Celebration of staff years of service
Years of Service Staff Member Area of work 35 years Brian Smith Grounds and Garden
35 years Robin Walton Hospitality
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Donations and Contributions
Donor Amount Application Corryong Health Ladies Auxiliary $100.00 Christmas Cheer Corryong & Upper Murray Ministers Association $100.00 Kates Kitchen John Mitchell $946.90 Mental Health Corryong & Upper Murray Ministers Association $100.00 Not Specified Ladies in Agriculture Calendar Agmate $1520.00 Sales Corryong Men’s Shed $2645.00 Contributed to Broda Chair Susan Henshall $100.00 Social Work Wodonga Court Fund $800.00 Social Work Barrels for Bianca $3000.00 Mental Health Corryong Bridge Club $500.00 Not Specified John Mitchell $100,000.00 Social Inclusion Glenda Haberecht and Rosemary Neil $200.00 Not Specified Jigsaw Donations $26.10 Not Specified Numurkah Senior Citizens Club $1000.00 Staff appreciation BBQ Corryong Health Ladies Auxiliary $9013.40 “Betty” AED Training Doll Total $120,051.40
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Occupational Health and Safety
Corryong Health is a responsible leader in the safety of its employees, consumers and members of the public. The Service complies with the requirements of the Occupational Health and Safety Act (Vic) 2004 and the Victorian Occupational Health and Safety Regulations 2017.
Corryong Health continues to work with Health and Safety Representatives to eliminate or mitigate the risk of injury within the workplace. Where injury has occurred, the organisation seeks to achieve the safe, appropriate and timely Return to Work of its employees.
There remains a strong emphasis on reducing workplace injuries. The Occupational Health and Safety Committee takes a proactive approach to dealing with matters of workplace safety. Staff continue to be encouraged to report incidents and workplace hazards.
Hazard and near miss reporting are encouraged as it as it allows for the identification and rectification of potential sources of workplace injury.
Occupational Health and 2019/20 2018/19 2017/18 Safety Statistics Number of reported hazards/ Incidents 40 Incidents 35 Incidents 29 incidents for the year per 100 Hazards 10 Hazards 10.4 Hazards 17.8 FTE Number of lost time standard 0 0 0 Workcover claims for the year per 100 FTE Average Cost per Workcover 0 0 0 claim for the year (‘000)
Lost time standard claims:
Year Lost Lost time Days Payments Average Estimation of time claims per lost to date cost per outstanding claims 100FTE claim claims costs employees 2019/20 0 0 Nil Nil Nil $91,192 2018/19 0 0 3 Nil Nil $27,423 2017/18 0 0 Nil Nil Nil $44,808
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Occupational Violence
Occupational violence statistics 2019-20 Workcover accepted claims with an occupational violence cause per 100 FTE 0 Number of accepted Workcover claims with lost time injury with an occupational 0 violence cause per 1,000,000 hours worked. Number of occupational violence incidents reported 70 Number of occupational violence incidents reported per 100 FTE 76.84 Percentage of occupational violence incidents resulting in a staff injury, illness 3% or condition The following definitions apply: For the purposes of the above statistics the following definitions apply. Occupational violence - any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment. Incident – an event or circumstance that could have resulted in, or did result in, harm to an employee. Incident of all severity rating must be included. Code Grey reporting is not included, however, if an incident occurs during the course of a planned or unplanned Code Grey, the incident must be included. Accepted Workcover claims – Accepted Workcover claims that were lodged in 2019-20 Lost time – is defined as greater than one day. Injury, illness or condition – This includes all reported harm as a result of the incident, regardless of whether the employee requires time off work or submitted a claim.
Consultancies Details of consultancies (under $10,000) In 2019-20, there were five consultancies where the total fees payable to the consultants were less than $10,000 (excl. GST). The total expenditure incurred during 2019-20 in relation to these consultancies is $16,360.14 (excl GST)
Details of consultancies (valued at $10,000 or greater) In 2019-20, there were no consultancies more than $10,000 (excl. GST).
Information & Communication Technology (ICT) expenditure The total ICT expenditure incurred during 2019-20 is $353,426 (excluding GST) with the details shown below: Business as Usual Non-Business as Usual (non BAU) ICT expenditure (BAU) ICT expenditure
Total (excluding GST) Total=operational Operational Capital expenditure (c) expenditure and capital expenditure (excluding GST) (b) expenditure, excluding (excluding GST) (a) GST (a+b) $301,645 $51,781 $NIL $51,781
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Additional information available on request
This is to verify that the items listed below have been retained by Corryong Health and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable): a) Declarations of pecuniary interests have been duly completed by all relevant officers b) Details of shares held by senior officers as nominee or held beneficially; c) Details of publications produced by the entity about itself, and how these can be obtained; d) Details of changes in prices, fees, charges, rates and levies charged by the Health Service; e) Details of any major external reviews carried out on the Health Service; f) Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations; g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit; h) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services; i) Details of assessments and measures undertaken to improve the occupational health and safety of employees; j) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations; k) A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which those purposes have been achieved; l) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.
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Workforce Data Disclosure
FULL TIME EQUIVALENT (FTE) STAFF BY LABOUR CATEGORY June current Average monthly Labour Category month FTE FTE 2019 2020 2019 2020 Nursing 28.65 30.73 29.02 29.51 Medical Support - - - - Hospital Medical Officers 2.88 2.77 2.9 2.5 Ancillary Staff (Allied Health) 5.62 6.6 6.79 6.97 Administrative and clerical 19.38 15.88 18.06 15.07 Hotel and Allied Services 35.76 36.96 35.56 37.05 Total: 92.29 92.94 92.33 91.10
As at 30 June 2020 As at 30 June 2019 Type Total Type Total Full time 14 Full time 19 Part time 117 Part time 105 Casual 27 Casual 21 Total 158 Total 145
Comparative Financial Analysis
2020 2019 2018 2017 2016 $,000 $,000 $,000 $,000 $,000
Operating result 471 -27 376 165 714 Total Revenue 13,242 11,903 11,211 11,342 10,671 Total Expenses 13,743, 12,429 11,734 11,460 10,590 Net results from transactions -501 -526 -523 -118 81 Total other economic flows 9 40 3 0 -4 Net result -492 -486 -520 -118 77 Total Assets 19,922 17,464 14,386 14,873 14,327 Total Liabilities 8066 5,116 4,285 4,251 3,857 Net Assets/Total equity 11,856 12,348 10,101 10,622 10,740
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Reconciliation between the Net Result from transactions reported in the financial statements to the operating result
2020 2019 2018 2017 2016 $,000 $,000 $,000 $,000 $,000 Net operating result# 471 -27 376 165 714 Capital and specific items Capital purpose income 283 510 99 712 328 Specific income Covid 19 State Supply Arrangements – NA NA NA NA NA Assets received free of charge or for Nil consideration under the State supply State Supply Items consumed up to 30th NA NA NA NA NA June 2020 Expenditure of capital purpose 6 11 0 0 0 Depreciation and amortisation 1244 997 997 995 961 Impairment of non-financial assets Finance costs (other) 6 1 1 0 0
Net result from transactions -501 -526 -523 -118 81 * # the net operating result is the result which the health service is monitored against.
Multi-Purpose Performance Priorities
a) Quality and Safety Key Performance Indicator Target Result Health Service Accreditation Full compliance Full compliance Compliance with Cleaning Full compliance 98.8% Standards Compliance with the Hand Hygiene 83% 94.2%* Australia program Percentage of healthcare workers 84% 94% immunised for influenza Victoria Healthcare Experience 95% positive Full Compliance* Survey – patient experience experience Victoria Healthcare Experience 75% very positive Full Compliance* Survey – discharge care response *Hand Hygiene – Quarter 4 data is not available due to COVID-19. Result is based on available data *Victorian Healthcare Experience Survey – Less than 42 responses were received for the period due to the relative size of the Health Service 16
b) Governance and leadership
Key Performance Indicator Target Result People matter survey - percentage of staff with an overall 80% 78% positive response to safety and culture questions.
c) Financial sustainability
Key performance indicator Target Result
Operating result ($m) 0.00 0.47
Trade creditors 60 days 54 days
Patient fee debtors 60 days 21 days
Adjusted current asset ratio 0.7 1.32
Number of days with available cash 14 days 82.5 days
d) Funded flexible aged care places
Campus Number Flexible High Care 39 Flexible Low Care 13 Flexible Home Care 8
e) Utilisation of Flexible Aged Care Places
Campus Number Occupancy level % Flexible High Care 39 100% Flexible Low Care 13 100% Respite 6 100% - Residential Aged Care Respite included above * Flexible Home Care 8 100% Total 66
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f) Acute Care Activity
Service Type of Activity Actual Activity 2019-20 Medical Inpatients Bed Days 1173 Urgent Care Centre Presentations 1203 Radiology Number of Clients 1277 Palliative care Number of Clients 13 District Nursing Occasions of Service 2423 Renal dialysis Number of Clients 2
g) Primary Health Care Activity
Service Total Attendances Allied Health Assistant 869 Cardiopulmonary Rehabilitation This is included in Exercise Physiology and Physiotherapy numbers Diabetes Education 353 Exercise Physiology 1376 Medical Attendances 10855 Mental Health 1690 Practice Nurse 2825 Occupational Therapy 1347 Physiotherapy 1351 Social Worker 423 Podiatry 408
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Operational & Budgetary Objectives & Performance against Objectives
Following on from Corryong Health’s 2019/2024 Strategic Plan, Business Plans have been developed for each Department in order to set goals and targets to work towards over the next four years. Below is a table addressing the achievements from 2019/2020 for each strategy set out in the Strategic Plan Strategy Achievements Strategy 1: • GP workforce security and after hours: Offer a Variety of – Recruiting a permanent part time and regular accessible services locums for total of 3 EFT to ensure people can – Recruitment of women's health GP stay in the community – Commencement of after-hours GP/ Nurse wherever possible service
• Attracting New Mental Health funding: – $968,000 DHHS Mental Health over 2 years – $50,000 Alcohol and other Drugs (AOD) recurring (Primary Health Network) – Negotiating multiyear funding for Primary Mental Health Service
• Additional range of services commenced: – Podiatrist on staff and increased capacity – Mental health mix expanded to psychology and Mental Health social work – Alcohol and Other Drugs Nurse – Increased district nursing and community palliative care capacity
• Commencement of My Emergency Doctor for after- hours support reducing preventable transfers out of Corryong
• Increased telehealth during Pandemic enabling service access without risk of transmission
• Home-Based Day Activity service during Pandemic
• Introduction of community communication strategy to increase awareness of services and community health messaging
• Health and Fitness Centre Development
• Increased understanding of cultural heritage in the Upper Murray
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Strategy 2: • Strategic Partnerships Data Driven – Upper Murray Community Bushfire Customer Service; Recovery Committee Productivity and – Upper Hume Primary Care Partnership Quality – Upper Murray Health Committee – Towong Alliance – COVID Pandemic Hume and Sub-Regional Partnership – Albury Region Partnership – Upper Murray Events Centre (Towong Council; DEWLP; Sport Clubs) – Corryong Schools – Australian Institute of Flexible Learning – Alpine Institute
• Partnering with Consumers – Safer Care Victoria Partnering with Consumers Plan (Communication and Personalised and holistic Plans completed) – Consumer inclusion in Sub-Committee and Community Health Advisory Group meeting structures
• Accreditation: – Successful accreditation against all relevant standards – Contracts with accrediting bodies remain up to date
• By-Laws and Governance Structures: – By-Laws revised and approved by DHHS – Meeting Accountability Framework developed and implemented including reduction of number of meetings; clear reporting lines of all meetings; and linked audit schedule – Alignment of strategic plan and business plan with Accreditation standards
• Improved Data Management – Meeting Accountability Framework – Commencement of Intake Project – Cost Centre alignment with contracts implemented
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Strategy 3: • Strategic Human Resources Plan: Workforce – Independent Facilitator Trial Completed Capability and (SCV) Availability – Introduced Middle Management Layer and Organisation Structure alignment (e.g. efficiencies – consolidating administration workforce) – Organisational Values Development Project as part of Strategic Planning - Ground up approach – Commencement of Governance, Leadership and Culture project (GL&C) – Workplace Health and Wellbeing Plan oversight – Revision of Occupational Health and Safety committee – Bushfire Trauma Response
• Training Partnerships: – AIFL traineeship – Alpine Institute – Graduate Nursing program and International Nurse program
• Emergency Code Policy and Mandatory Training Review – Bushfire process review – Training Calendar developed and inclusive of Ambulance Victoria and Walwa Bush Nursing Centre – Mandatory Training Schedule revised and 100% completion
• Leadership Development – Introduction of Australasian College of Health Service Managers Leadership Competency Standards for Executive and Managers – Commencement of monthly leadership webinars available for leadership group and emerging leaders – GL&C project commencement
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Strategy 4: • Contracts Accountability: Financial, – Cost Centre Alignment Project completed Infrastructure and – Budget development, Data review and Environmental Performance Targets set Sustainability – Meeting Accountability Framework implemented – Operational Performance meeting commenced with oversight of contracted deliverables
• Social Procurement Framework drafted and approved by Health Purchasing Victoria. To be implemented in 2020/21.
• Health and Fitness Centre Business Model review – Community Surveys – New fee structure implemented
• Infrastructure – Rural Health Infrastructure Grants successful – Electrical Switch Board Upgrade Completed – Fire Instrument Panel replaced – Fire Mitigation Review underway – Mortuary development completed – Residential Aged Care kitchens refurbished – Health and Fitness Centre development completed
• Asset Register Project completed
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Strategy 5: • Telehealth: Innovate through – My Emergency Doctor commenced with Digital Applications: improved outcomes and financially Behaviours; and supported by Primary Health Network Partnerships • Website is up to date and correct
• Policy and Procedure consolidation and simplification project achieved in part
• Partnerships: – Upper Murray Health Committee established and meeting monthly and cross-border (Corryong Health; Walwa Bush Nursing Centre: Ambulance Victoria; Police) – Towong Alliance continued participation – Mental Health Partnership established across AWH; Gateway Health; Tallangatta Health; and Walwa Bush Nursing Centre
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Services provided by Corryong Health
Medical Services Mental Health • Salaried Medical Officers • Mental Health Nursing • General Practice Nursing • Mental Health Social Work • Women’s Health Nursing • Psychology • Visiting Surgeon and Pediatrician • Alcohol and Drug Support • Diabetes Education
Community Groups Acute Care • Community Health Advisory Group • Acute beds • Cancer Support Group • Urgent Care Centre (UCC) • Mental Health Support Group • Pathology and imaging • Carers Support Group • Domiciliary Midwifery • Childbirth Education • High Dependency Unit • Dialysis • Palliative Care Health Promotion • Day Procedure Unit • Health & Fitness Centre • Fair Share
Allied Health • Physiotherapy • Occupational Therapy Home Care Services • Exercise Physiology • District Nursing • Podiatry • Meals on Wheels • Social Work • Palliative Care • Allied Health Assistance • Day Activity Centre Program • Commonwealth Home Support Program • Home Care Packages Visiting Services • National Disability Insurance • Podiatry Scheme (NDIS) • Continence Management Nurse • Program for Younger People • Audiology • Psychology Telehealth • Geriatrician • Various specialists • Speech Pathology • My Emergency Doctor • Royal Flying Doctor Service • Dietician Residential • Psychiatry • Retirement Village • Aged Care Volunteer Services • Palliative Care • Community Transport • Volunteers
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Legislation and Disclosures
Local Jobs Act 2003 All areas of Corryong Health comply with the regulations within the Local Jobs Act 2003. There was one contract completed during 2019/20.
Freedom of Information Act 1982 During the year there were no requests for information processed by the Agency under the Freedom of Information Act 1982. There were 2 medical record requests for information which were outside the Freedom of Information Act 1982. Requests for access to information in documentary form in the custody of the Agency should be made in writing and address to: - The Freedom of Information Officer, Corryong Health, PO Box 200, CORRYONG VIC 3707
Public Interest Disclosure Act 2012 The Public Interest Disclosure Act 2012 (Vic) enables people to make disclosures about improper conduct within the public sector without fear of reprisal. The act aims to provide openness and accountability by encouraging people to make disclosures and protecting them when they do so. There have been no public disclosures at Corryong Health.
Carers Recognition Act 2012 The Carers Recognition Act 2012 formally acknowledges the important contribution that people in a care relationship make to our community and the unique knowledge that carers hold of the person in their care. The valuable role of the carer has been integrated in the policies and procedures of Corryong Health.
Building Act 1993 Corryong Health complies with the provisions of the Building Act 1993 in accordance with DHS capital Development Guidelines. (Assistant Treasurer Guideline Building Act 1993/Standards for Publicly Owned Buildings/November 1994)
Financial Management Act 1994 The information provided in this report has been prepared in accordance with the Directions of the Assistant Treasurer Part 9.1.3 (IV) and is available to relevant Ministers, Members of Parliament and the public on request.
Safe Patient Care Act 2015 Corryong Health has no disclosures under the Safe Patient Care Act 2015. 25
Occupational Health & Safety Corryong Health complies with the Occupational Health & Safety Act of 2004 and its associated regulations and code of practice to meet the Australian Council of Health Care Standards requirements.
Statement on National Competition Policy Corryong Health complies with “Competitive Neutrality Policy Victoria” and all government policies regarding neutrality in regard to tender applications.
Employee and Conduct Principles Corryong Health is committed to the application of the employment and conduct principles and all employees have been correctly classified in workforce data collections.
Hospital Fees Corryong Health charges fees in accordance with the Department of Health and Human Services, Victoria directives issued under Section 9 of the Hospital and Charities (Fees) Regulations 1986 (as amended).
Audit Act 1994 The purpose of the Corryong Health Finance and Audit Committee is to assist the Agency to maximise benefits from systems of internal control and both internal and external review processes. The independent members of this committee are: Mr Ken Wilson. Board members are Ilea Buffier (Chair), Richard Bennetts and Susan Owens. External Auditors: Victorian Auditor General’s Office (VAGO) Internal Auditors: Accounting and Audit Solutions Bendigo (AASB)
Food Safety and Cleaning Audits Corryong Health uses an external independent audit process for cleaning standards, food safety and infection control. In all areas Corryong Health has performed above the State benchmark. Corryong Health achieved an average score of 98.8% for very high- risk areas the state bench mark for very high risk is a score of 90%. State bench mark score for high, moderate & low risk area is 85%. Corryong Health have scored these functional areas 89% for high areas, 92.5% for moderate risk areas, low risk areas 94.5%.
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Infection Control Corryong Health participated in the VICNISS – Victorian Nosocomial (hospital acquired) Infection Surveillance System. We have had no hospital acquired infections for the period 2019/20. Corryong Health continues to participate in Hand Hygiene monitoring and reporting. Corryong Health participates in the Hume regional infection control-auditing program, which facilitates us to benchmark against like facilities. Aged Care Surveillance has been included in VICNISS reporting. We participate in Aged Care National Antimicrobial Prescribing Survey (ACNAPS) each year and Acute National Antimicrobial Prescribing Survey (Hospital NAPS).
Staff Credentialing All clinical staff employed at Corryong Health must have the appropriate qualifications and skills, which are assessed prior to the person starting work. Visiting Medical Officers are Credentialed with an annual review of medical indemnity insurance, medical registration and training attended.
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Attestations
The Corryong Health Annual Report, has been compiled to meet the requirements of the Annual Reporting (Contributed Income Sector) regulations 1988 (as amended)
Data Integrity I, Dominic Sandilands, certify that Corryong Health has put in place appropriate internal controls and processes to ensure that reported data accurately reflects actual performance. Corryong Health has critically reviewed these controls and processes during the year.
Mr Dominic Sandilands Chief Executive Officer At Corryong on 1st July 2020
Conflict of Interest I, Dominic Sandilands, certify that Corryong Health has put in place appropriate internal controls and processes to ensure that it has complied with the requirements of hospital circular 07/2017 Compliance reporting in health portfolio entities (Revised) and has implemented a “Conflict of Interest” policy consistent with the minimum accountabilities required by the VPSC. Declaration of private interest forms have been completed by all executive staff within Corryong Health and members of the board, and all declared conflicts have been addressed and are being managed. Conflict of interest is a standard agenda item for declaration and documenting at each executive board meeting.
Mr Dominic Sandilands Chief Executive Officer At Corryong on 1st July 2020
Integrity, fraud and corruption I, Dominic Sandilands, certify that Corryong Health has put in place appropriate internal controls and processes to ensure that Integrity, fraud and corruption risks have been reviewed and addressed at Corryong Health during the year.
Mr Dominic Sandilands Chief Executive Officer At Corryong on 1st July 2020
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Responsible Bodies Declaration In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Corryong Health for the year ending 30th June 2020.
Mrs Deborah Culhane Chairperson (on behalf of the Board) At Corryong 28th August 2020
Financial Management Compliance SD5.1.4 I, Deborah Culhane, on behalf of the Responsible Body, certify that Corryong Health has no Material Compliance Deficiency with respect to the applicable Standing Directions under the Financial Management Act 1994 and Instructions.
Mrs Deborah Culhane Chairperson At Corryong 28th August 2020
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Disclosure Index
The Annual Report of Corryong Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.
Legislation Requirement Page reference
For page reference ‘FS’ - please refer to copy of Corryong Health financial statements
Ministerial Directions Report of Operations
Charter and purpose FRD 22H Manner of establishment and the relevant Ministers 2,5 FRD 22H Purpose, functions, powers and duties 2 FRD 22H Nature and range of services provided 24 FRD 22H Activities, programs and achievements for the reporting period 19-24 FRD 22H Significant changes in key initiatives and expectations for the future 19-24
Management and structure FRD 22H Organisational structure 8 FRD 22H Workforce data/ employment and conduct principles 15 FRD 22H Occupational Health and Safety 12
Financial information FRD 22H Summary of the financial results for the year 15 FRD 22H Significant changes in financial position during the year 15 FRD 22H Operational and budgetary objectives and performances against objectives 19-24 FRD 22H Subsequent events N/A FRD 22H Details of consultancies over $10,000 13 FRD 22H Details of consultancies under $10,000 13 FRD 22H Disclosure of ICT expenditure 13
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Legislation FRD 22H Application and operation of Freedom of Information Act 1982 25 FRD 22H Compliance with building and maintenance provisions of Building Act 1993 25 FRD 22H Public Interest Disclosure Act 2012 25 FRD 22H Statement on National Competition Policy 26 FRD 22H Application and operation of Carers Recognition Act 2012 25 FRD 22H Summary of the entity’s environmental performance 10 FRD 22H Additional Information available on request 14
Other relevant reporting directives FRD 25D Local Jobs First Act disclosures 25 SD 5.1.4 Financial Management Compliance attestation 29 SD 5.2.3 Declaration in the report of operations 28
Attestations Attestation on Data Integrity 28 Attestation on Managing Conflicts of Interest 28 Attestation on Integrity, fraud and corruption 28
Other reporting requirements Occupational Violence reporting 13 Reporting obligations under the Safe Patient Care Act 2015 12 Reporting of Outcomes from Statement of Priorities 2019-20 15-23
Notes ______
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MOUNT MITTAMATITE. MAY, 2020.
The view from out my window isn’t what it had formerly been, before raging bushfires last summer destroyed its magnificent scene; as I look across my valley it’s so hard to accept what I see, on the ridgetops standing forlornly, the remnants of every tree.
While nature tries its hardest to disguise the pain we feel, reflections from its rock forms can’t hide what we’re seeing is real; I can only wonder if its tortured form will change, will its complete ecology be altered as it tries to re-arrange?
Just where will its new growth spring from, will its ramparts crumble and fall, will rivulets from its altered streams be able to answer the call as they carve and gouge new gullies, cascading from its slopes, one can only wonder, observers clinging to their hopes.
Will time be enough to heal the scar from the devastation it felt, tragedy from its sorry demise, almost causing its rocks to melt; I hope its future won’t ever subside as it strives to recover again, I fear I’m wrong, but I live in dread of a heavy deluge of rain.
Its lower slopes are now vivid again, but its gloomy mood is pervading, no longer the brilliant kaleidoscope it almost seemed proud of parading; the future will decide in its time just how or not it will mend, evolving from its ancient shape… a story devoid of an end.
Maurie Foun– Mental Health Advocate and member of the Corryong Community Health Advisory Group.
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Independent Auditor’s Report To the Board of Corryong Health
Opinion I have audited the financial report of Corryong Health (the health service) which comprises the:
• balance sheet as at 30 June 2020 • comprehensive operating statement for the year then ended • statement of changes in equity for the year then ended • cash flow statement for the year then ended • notes to the financial statements, including significant accounting policies • board member's, accountable officer's and chief finance & accounting officer's declaration. In my opinion the financial report presents fairly, in all material respects, the financial position of the health service as at 30 June 2020 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the Financial Management Act 1994 and applicable Australian Accounting Standards.
Basis for I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Opinion Auditing Standards. I further describe my responsibilities under that Act and those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report.
My independence is established by the Constitution Act 1975. My staff and I are independent of the health service in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Board’s The Board of the health service is responsible for the preparation and fair presentation of the responsibilities financial report in accordance with Australian Accounting Standards and the Financial Management for the financial Act 1994, and for such internal control as the Board determines is necessary to enable the report preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Board is responsible for assessing the health service’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.
Other The Board of the health service is responsible for the Other Information, which comprises the Information information in the health service’s annual report for the year ended 30 June 2020, but does not include the financial report and my auditor’s report thereon.
My opinion on the financial report does not cover the Other Information and accordingly, I do not express any form of assurance conclusion on the Other Information. However, in connection with my audit of the financial report, my responsibility is to read the Other Information and in doing so, consider whether it is materially inconsistent with the financial report or the knowledge I obtained during the audit, or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude there is a material misstatement of the Other Information, I am required to report that fact. I have nothing to report in this regard.
Auditor’s As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report responsibilities based on the audit. My objectives for the audit are to obtain reasonable assurance about whether for the audit of the financial report as a whole is free from material misstatement, whether due to fraud or error, the financial and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of report assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:
• identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the health service’s internal control • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board • conclude on the appropriateness of the Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the health service’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the health service to cease to continue as a going concern. • evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
MELBOURNE Travis Derricott 15 September 2020 as delegate for the Auditor-General of Victoria
2 Financial Statements Financial Year ended 30 June 2020
Board member’s, accountable officer’s, and chief finance & accounting officer’s declaration
The attached financial statements for Corryong Health have been prepared in accordance with Direction 5.2 of the Standing Directions of the Assistant Treasurer under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2020 and the financial position of Corryong Health at 30 June 2020.
At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on 28 August, 2020.
Deborah Culhane Dominic Sandilands Kerrie Clarke Chief Finance and Accounting Board Chair Chief Executive Officer Officer Corryong Corryong Corryong 28 August 2020 28 August 2020 28 August 2020 Corryong Health Comprehensive Operating Statement For the financial year ended 30 June 2020
Total Total
2020 2019 Note $'000 $'000 Income from transactions Operating activities 2.1 13,184 11,813 Non-operating activities 2.1 58 90 Total Income from Transactions 13,242 11,903
Expenses from Transactions Employee expenses 3.1 (10,018) (9,178) Supplies and consumables 3.1 (972) (730) Finance costs 3.1 (6) (1) Depreciation and amortisation 4.3 (1,244) (997) Other administrative expenses 3.1 (1,017) (976) Other operating expenses 3.1 (486) (547) Total Expenses from Transactions (13,743) (12,429)
Net Result from Transactions - Net Operating Balance (501) (526)
Other Economic Flows included in Net Result Net Gain/(Loss) on sale of non-financial assets 3.2 - 29 Net Gain/(Loss) on financial instruments at fair value 3.2 9 - Other Gain/(Loss) from other economic flows 3.2 - 11 Total Other Economic Flows included in Net Result 9 40
Net Result for the year (492) (486)
Other Comprehensive Income
Items that will not be reclassified to Net Result Changes in property, plant and equipment revaluation surplus 4.1(b) - 2,733
Total Other Comprehensive Income - 2,733
Comprehensive Result for the Year (492) 2,247
This Statement should be read in conjunction with the accompanying notes. Corryong Health Balance Sheet as at 30 June 2020
Note Total Total 2020 2019 $'000 $'000 Current Assets Cash and cash equivalents 6.2 7,626 4,515 Receivables 5.1 200 296 Prepayments 4 24 Total Current Assets 7,830 4,835
Non-Current Assets Receivables 5.1 (53) 207 Property, plant and equipment 4.1 (a) 12,129 12,403 Intangible assets 4.2 16 19 Total Non-Current Assets 12,092 12,629 TOTAL ASSETS 19,922 17,464
Current Liabilities Payables 5.2 2,090 951 Borrowings 6.1 81 13 Provisions 3.4 2,029 2,052 Other liabilities 5.3 3,434 1,834 Total Current Liabilities 7,634 4,850
Non-Current Liabilities Borrowings 6.1 158 11 Provisions 3.4 274 255 Total Non-Current Liabilities 432 266 TOTAL LIABILITIES 8,066 5,116 NET ASSETS 11,856 12,348
EQUITY Property, plant and equipment revaluation surplus 4.1(f) 8,667 8,667 Contributed capital 4,909 4,909 Accumulated deficits (1,720) (1,228) TOTAL EQUITY 11,856 12,348
This Statement should be read in conjunction with the accompanying notes. Corryong Health Statement of Changes in Equity For the Financial Year Ended 30 June 2020
Property, Contributed Accumulated Total Plant and Capital Surplus/(Deficits) Equipment Revaluation Surplus
Note $'000 $'000 $'000 $'000 Balance at 1 July 2018 4.1 (f) 5,934 4,909 (742) 10,101 Net result for the year - - (486) (486) Other comprehensive income for the year 2,733 - - 2,733
Balance at 30 June 2019 8,667 4,909 (1,228) 12,348 Net result for the year - - (492) (492)
Balance at 30 June 2020 8,667 4,909 (1,720) 11,856
This Statement should be read in conjunction with the accompanying notes. Corryong Health Cash Flow Statement For the Financial Year Ended 30 June 2020
Note Total Total 2020 2019 $'000 $'000 Cash Flows from Operating Activities Operating grants from government 11,543 8,601 Capital grants from government - State 223 491 Patient fees received 1,223 1,208 Private practice fees received 845 998 GST received from ATO 44 - Interest and investment income received 58 90 Commercial income received 62 - Other receipts 614 634 Total Receipts 14,612 12,022
Employee expenses paid (10,030) (8,810) Payments for supplies and consumables (890) (730) Payments for medical indemnity insurance (22) - Payments for repairs and Maintenance (231) (297) Finance Costs (6) (1) GST paid to ATO - (83) Cash outflow for leases (56) - Other payments (1,174) (1,029) Total Payments (12,409) (10,950) Net Cash Flows from/(used in) Operating 8.1 2,203 1,072 Activities
Cash Flows from Investing Activities Purchase of non-financial assets (965) (1,100) Other Capital Receipts 60 - Purchase of Intangible assets (2) (23) Proceeds from disposal of non-financial assets - 29 Proceeds from disposal of investments - 1,009 Net Cash Flows from/(used in) Investing (907) (85) Activities
Cash Flows from Financing Activities Proceeds from/(Repayment) of borrowings 215 (4) Net Receipt/(refund) of accommodation deposits 1,600 182 Net Cash Flows from /(used in) Financing 1,815 178 Activities Net Increase/(Decrease) in Cash and Cash 3,111 1,165 Equivalents Held Cash and cash equivalents at beginning of year 4,515 3,350 Cash and Cash Equivalents at End of Year 6.2 7,626 4,515
This Statement should be read in conjunction with the accompanying notes. Corryong Health Notes to the Financial Statements For the Financial Year Ended 30 June 2020 Basis of preparation These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basis is specifically disclosed in the note associated with the item measured on a different basis.
The accrual basis of accounting has been applied in preparing these financial statements, whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
Note 1 – Summary of Significant Accounting Policies These annual financial statements represent the audited general purpose financial statements for Corryong Health for the year ended 30 June 2020. The report provides users with information about Corryong Health’s stewardship of resources entrusted to it. (a) Statement of Compliance These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable AASBs, which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.
The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions authorised by the Assistant Treasurer.
Corryong Health is a not-for-profit entity and therefore applies the additional AUS paragraphs applicable to "not- for-profit" Health Service under the AASBs. (b) Reporting Entity The financial statements include all the controlled activities of Corryong Health. Its principal address is: Kiell Street Corryong, Victoria 3707 A description of the nature of Corryong Health’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements. (c) Basis of Accounting Preparation and Measurement Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies have been applied in preparing the financial statements for the year ended 30 June 2020, and the comparative information presented in these financial statements for the year ended 30 June 2019.
The financial statements are prepared on a going concern basis (refer to Note 8.8 Economic Dependency). These financial statements are presented in Australian dollars, the functional and presentation currency of Corryong Health.
All amounts shown in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Minor discrepancies in tables between totals and sum of components are due to rounding.
Corryong Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds.
The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is, they are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Intersegment Transactions Transactions between segments within Corryong Health have been eliminated to reflect the extent of Corryong Health's operations as a group. Corryong Health Notes to the Financial Statements For the Financial Year Ended 30 June 2020
(c) Basis of Accounting Preparation and Measurement (Continued) Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AAS's that have significant effects on the financial statements and estimates relate to:
• The fair value of land, buildings and plant and equipment (refer to Note 4.1 Property, Plant and Equipment), and • Employee benefit provisions are based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 3.4 Employee Benefits in the Balance Sheet).
Covid-19 The global health pandemic Covid-19, has impacted Australia and the World in a significant manner. Victoria was originally declared a State of Emergency and subsequently moved to a State of Disaster prior to signing these financial statements. The impact on communities and businesses has been varied, with Government policies put in place to provide support to those who are most in need. Financial support in the form of JobKeeper and JobSeeker have been implemented for those who are unable to be fully employed or have been made redundant. State Government entities have also been instructed to provide 100% rent relief to tenants and to ensure trade creditor payments are made more regularly, with a target of net 5 days from invoice.
Regional areas have generally been less impacted by the pandemic, however the changed conditions continue to provide uncertainty and a reluctance from the community to engage as regularly with the Health Sector. The State Government have recognised the importance of a strong public health system and are providing ongoing support to ensure we remain financially viable and we can continue to support our staff who are at the front line of defence should the pandemic impact our community even more directly going forward.
From a financial perspective, the Health Service expects there will be a negative impact in the following areas: · Private Patient Revenue due to restrictions on surgical activity. ∙ Recoveries from clinicians for use of hospital facilities as they have not been able to provide them. · Recoveries from clients for services normally provided directly, but are no longer able to be provided. ∙ Activity based funding areas where there is no dispensation or reduced dispensation made available by the provider. · Specific costs incurred in the prevention and/or treatment of Covid-19.
For further details refer to Note 2.1 Funding delivery of our services and Note 4.1 Property, Plant and Equipment. Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the Balance Sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the ATO, are presented separately in the operating cash flow.
Commitments and contingent assets and liabilities are presented on a gross basis. Corryong Health Notes to the Financial Statements For the Financial Year Ended 30 June 2020
(d) Jointly Controlled Operation Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.
In respect of any interest in joint operations, Corryong Health recognises in the financial statements:
• its assets, including its share of any assets held jointly;
• any liabilities including its share of liabilities that it had incurred;
• its revenue from the sale of its share of the output from the joint operation;
• its share of the revenue from the sale of the output by the operation; and
• its expenses, including its share of any expenses incurred jointly.
Corryong Health is a member of the Hume Rural Health Alliance Joint Venture and retains joint control over the arrangement, which it has classified as a joint operation (refer to Note 8.7 Jointly Controlled Operations).
(e) Equity Contributed Capital Consistent with the requirements of AASB 1004 Contributions , contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Corryong Health. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. Transfers of net liabilities arising from administrative restructurings are treated as distributions to owners. Other transfers that are in the nature of contributions or distributions or that have been designated as contributed capital are also treated as contributed capital. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note: 2 Funding delivery of our services The Health Service’s overall objective is to provide quality health service that support and enhance the wellbeing of all Victorians. Corryong Health is predominantly funded by accrual based grant funding for the provision of outputs. Corryong Health also receives income from the supply of services. Structure 2.1 Income from Transactions
Note 2.1: Income from Transactions Total Total 2020 2019 $'000 $'000
Government grants (state) - Operating 1 6,531 5,095 Government grants (Commonwealth) - Operating 3,687 3,496 Government grants (State) - Capital 223 388 Government grants (Commonwealth) - Capital - 103 Other capital purpose income 60 - Patient and resident fees 1,195 1,184 Private practice fees 845 998 Commercial activities 2 62 91 Other revenue from operating activities (including non-capital donations) 581 458 Total Income from Operating Activities 13,184 11,813
Other interest 58 90 Total Income from Non-Operating Activities 58 90 Total Income from Transactions 13,242 11,903
1. Government Grants (State) - Operating includes $0.09m of funding support for COVID-19 impact on health service operations.
2. Commercial activities represent business activities which health services enter into to support their operations. Revenue Recognition Impact of COVID-19 on revenue and income As indicated at Note 1, Corryong Health's response to the pandemic included introduction of restrictions for entry and reduced activity. This resulted in Corryong Health incurring lost revenue as well as direct and indirect COVID-19 costs. The Department of Health and Human Services continues to monitor the impact of Covid-19 and provides funding for lost revenue and certain direct and indirect COVID-19 costs where it has had a negative impact on the budgeted result for the year. Government Grants Income from grants to construct major infrastructure is recognised when (or as) Corryong Health satisfies its obligations under the transfer. This aligns with Corryong Health's obligation to construct the asset. The progressive percentage costs incurred is used to recognise income because this most closely reflects the construction's progress as costs are incurred as the works are done. Income from grants that are enforceable and with sufficiently specific performance obligations are accounted for under AASB 15 as revenue from contracts with customers, with revenue recognised as these performance obligations are met. Income from grants without any sufficiently specific performance obligations, or that are not enforceable, is recognised when Corryong Health has an unconditional right to receive the cash which usually coincides with receipt of cash. On initial recognition of the asset, Corryong Health recognises any related contributions by owners, increases in liabilities, decreases in assets, and revenue (‘related amounts’) in accordance with other Australian Accounting Standards. Related amounts may take the form of: (a) contributions by owners, in accordance with AASB 1004; (b) revenue or a contract liability arising from a contract with a customer, in accordance with AASB 15; (c) a lease liability in accordance with AASB 16; (d) a financial instrument, in accordance with AASB 9; or (e) a provision, in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets. As a result of the transitional impacts of adopting AASB 15 and AASB 1058, as portion of the grant revenue has been deferred. If the grant income is accounted for in accordance with AASB 15, the deferred grant revenue has been recognised in contract liabilities whereas grant revenue in relation to the construction of capital assets which the health service controls has been recognised in accordance with AASB 1058 and recognised as deferred grant revenue (refer note 5.2). Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 2.1: Income from Transactions Performance obligations The types of government grants recognised under AASB 15 Revenue from Contracts with Customers includes: - Activity based funding with identifiable targets, - Grants requiring acquittal of services and/or expenditure which have specific identifiable targets. For activity based funding, revenue is recognised as target levels are met. These performance obligations have been selected as they align with the terms and conditions of the funding provided. For this type of funding, there is minimal judgement required, as performance is measured in accordance with DHHS Policy and Funding Guidelines. For grants requiring acquittal of services and/or expenditure, revenue is recognised in accordance with the funding agreement. Corryong Health exercises judgement over whether performance obligations are met, which includes assessment of total expenditure incurred and whether key performance indicators have been met. Previous accounting policy for 30 June 2019
Grant income arises from transactions in which a party provides goods or assets (or extinguishes a liability) to Corryong Health without receiving approximately equal value in return. While grants may result in the provision of some goods or services to the transferring party, they do not provide a claim to receive benefits directly of approximately equal value (and are termed ‘non-reciprocal’ transfers). Receipt and sacrifice of approximately equal value may occur, but only by coincidence.
Some grants are reciprocal in nature (i.e. equal value is given back by the recipient of the grant to the provider). Corryong Health recognises income when it has satisfied its performance obligations under the terms of the grant.
For non-reciprocal grants, Corryong Health recognises revenue when the grant is received.
Grants can be received as general purpose grants, which refers to grants which are not subject to conditions regarding their use. Alternatively, they may be received as specific purpose grants, which are paid for a particular purpose and/or have conditions attached regarding their use.
Patient and Resident Fees The performance obligations related to patient fees are based on the delivery of services. These performance obligations have been selected as they align with the terms and conditions of providing the services. Revenue is recognised as these performance obligations are met.
Resident fees are recognised as revenue over time as Corryong Health provides accommodation. This is calculated on a daily basis and invoiced monthly. Private Practice Fees
The performance obligations related to private practice fees are based on the delivery of services. These performance obligations have been selected as they align with the terms and conditions agreed with the private provider. Revenue is recognised as these performance obligations are met. Private practice fees include recoupments from the private practice for the use of hospital facilities.
Performance obligations related to commercial activities are based on the delivery of services. These performance obligations have been selected as they align with the terms and conditions per the contract with the provider of the commercial activities. Commercial activities Revenue from commercial activities includes items such as provision of meals, property rental and fundraising activities and is recognised on an accruals basis.
Non-cash contributions from the Department of Health and Human Services The Department of Health and Human Services makes some payments on behalf of health services as follows: • The Victorian Managed Insurance Authority non-medical indemnity insurance payments are recognised as revenue following advice from the Department of Health and Human Services
• Long Service Leave (LSL) revenue is recognised upon finalisation of movements in LSL liability in line with the long service leave funding arrangements set out in the relevant Department of Health and Human Services Hospital Circular
• Fair value of assets and services received free of charge or for nominal consideration
• Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another Health Service or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying amount. Contributions in the form of services are only recognised when a fair value can be reliably determined and the service would have been purchased if not received as a donation. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 2.1: Income from Transactions Performance obligations and revenue recognition policies
Revenue is measured based on the consideration specified in the contract with the customer. Corryong Health recognises revenue when it transfers control of a good or service to the customer i.e. revenue is recognised when, or as, the performance obligations for the sale of goods and services to the customer are satisfied.
• Customers obtain control of the supplies and consumables at a point in time when the goods are delivered to and have been accepted at their premises. • Income from the sale of goods are recognised when the goods are delivered and have been accepted by the customer at their premises.
• Revenue from the rendering of services is recognised at a point in time when the performance obligation is satisfied when the service is completed; and over time when the customer simultaneously receives and consumes the services as it is provided.
2.1 (b) Other non operating income
2020 2019 $'000 $'000 Interest 58 90 Total other income 58 90
Interest Income Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset, which allocates interest over the relevant period. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 3: The cost of delivering our services This section provides an account of the expenses incurred by the hospital in delivering services and outputs. In Section 2, the funds that enable the provision of services were disclosed and in this note the cost associated with provision of services are recorded.
Structure 3.1 Expenses from Transactions 3.2 Other Economic Flows 3.3 Analysis of expenses and revenue by internally managed and restricted specific purpose funds 3.4 Employee benefits in the Balance Sheet 3.5 Superannuation
Note 3.1: Expenses from Transactions Total Total 2020 2019 $'000 $'000
Salaries and wages 8,688 7,965 On-costs 784 719 Agency expenses 138 148 Fee for service medical officer expenses 318 265 Workcover premium 90 81 Total Employee Expenses 10,018 9,178 Drug supplies 35 37 Medical and surgical supplies (including Prostheses) 574 381 Diagnostic and radiology supplies 53 42 Other supplies and consumables 310 270 Total Supplies and Consumables 972 730 Finance costs 6 1 Total Finance Costs 6 1 Other administrative expenses 1,017 976 Total Other Administrative Expenses 1,017 976 Fuel, light, power and water 171 187 Repairs and maintenance 174 154 Maintenance contracts 57 41 Medical indemnity insurance 22 22 Expenses related to short term leases 20 90 Expenses related to leases of low value assets 36 53 Expenditure for capital purposes 6 - Total Other Operating Expenses 486 547 Total Operating Expense 12,499 11,432 Depreciation and amortisation (refer Note 4.3) 1,244 997 Total Depreciation and Amortisation 1,244 997 Total Non-Operating Expense 1,244 997 Total Expenses from Transactions 13,743 12,429
Expenses are recognised as they are incurred and reported in the financial year to which they relate. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 3.1: Expenses from Transactions Employee Expenses Employee expenses include: • Salaries and wages (including fringe benefits tax, leave entitlements, termination payments); • On-costs; • Agency expenses; • Fee for service medical officer expenses; • Work cover premium. Supplies and consumables Supplies and consumable costs are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed. Finance costs Finance costs include: • interest on bank overdrafts and short-term and long-term borrowings (Interest expense is recognised in the period in which it is incurred);
• amortisation of discounts or premiums relating to borrowings; • amortisation of ancillary costs incurred in connection with the arrangement of borrowings; and • finance charges in respect of leases which are recognised in accordance with AASB 16 Leases . Other Operating Expenses
Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include such things as:
• Fuel, light and power • Repairs and maintenance • Other administrative expenses • Expenditure for capital purposes (represents expenditure related to the purchase of assets that are below the capitalisation threshold of $1,000). The Department of Health and Human Services also makes certain payments on behalf of Corryong Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue and also recording the related expense. Non-operating expenses Other non-operating expenses generally represent expenditure outside the normal operations such as depreciation and amortisation, and assets and services provided free of charge or for nominal consideration. Operating lease payments Operating lease payments up until 30 June 2019 (including contingent rentals) were recognised on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. From 1 July 2019, the following lease payments are recognised on a straight-line basis:
• Short-term leases – leases with a term less than 12 months; and • Low value leases – leases with the underlying asset’s fair value (when new, regardless of the age of the asset being leased) is no more than $10,000. Variable lease payments not included in the measurement of the lease liability (i.e. variable lease payments that do not depend on an index or a rate, initially measured using the index or rate as at the commencement date). These payments are recognised in the period in which the event or condition that triggers those payments occur. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 3.2: Other economic flows included in net result
Total Total 2020 2019 $'000 $'000
Net gain/(loss) on non‑financial assets Net gain on disposal of property plant and equipment - 29 Total Net Gain/(Loss) on Non‑Financial Assets - 29 Net gain/(loss) on financial instruments Allowance for impairment losses of contractual receivables 9 - Total Net Gain/(Loss) on Financial Instruments 9 - Other gains/(losses) from other economic flows
Net gain/(loss) arising from revaluation of long service liability - 11 Total other Gains/(Losses) from Other Economic Flows - 11
Total Gains/(Losses) From Other Economic Flows 9 40
Other economic flows are changes in the volume or value of an asset or liability that do not result from transactions. Other gains/(losses) from other economic flows include the gains or losses from:
• the revaluation of the present value of the long service leave liability due to changes in the bond interest rates. Net gain/ (loss) on non-financial assets Net gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
• Revaluation gains/ (losses) of non-financial physical assets (Refer to Note 4.1 Property plant and equipment.) • Net gain/ (loss) on disposal of non-financial assets
• Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal. Net gain/ (loss) on financial instruments Net gain/ (loss) on financial instruments at fair value includes: • impairment and reversal of impairment for financial instruments at amortised cost refer to Note 7.1 Investments and other financial assets; and Amortisation of non-produced intangible assets Intangible non-produced assets with finite lives are amortised as an ‘other economic flow’ on a systematic basis over the asset’s useful life. Amortisation begins when the asset is available for use that is when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Other gains/ (losses) from other economic flows Other gains/ (losses) include: • the revaluation of the present value of the long service leave liability due to changes in the bond rate movements, inflation rate movements and the impact of changes in probability factors; and
• transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.
Note 3.3: Analysis of Expenses and Revenue by Internally Managed and Restricted Specific Purpose Funds
Expense Revenue Total Total Total Total 2020 2019 2020 2019 $'000 $'000 $'000 $'000 Commercial Activities Catering - - 24 29 Cafeteria - - 5 4 Property - - 33 58 Total Commercial Activities - - 62 91 TOTAL - - 62 91 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 3.4: Employee Benefits in the Balance Sheet
Total Total 2020 2019 $'000 $'000
CURRENT PROVISIONS Employee Benefits i Accrued days off - unconditional and expected to be settled wholly within 12 months ii 12 9
Annual leave - unconditional and expected to be settled wholly within 12 months ii 671 589 - unconditional and expected to be settled wholly after 12 months iii 60 50
Long service leave - unconditional and expected to be settled wholly within 12 months ii 54 50 - unconditional and expected to be settled wholly after 12 months iii 1,031 1,151 1,828 1,849
Provisions related to Employee Benefit On-Costs Unconditional and expected to be settled within 12 months ii 81 71 Unconditional and expected to be settled after 12 months iii 120 132 201 203
TOTAL CURRENT PROVISIONS 2,029 2,052
NON-CURRENT PROVISIONS Conditional long service leave 247 230 Provisions related to employee benefit on-costs 27 25 TOTAL NON-CURRENT PROVISIONS 274 255
TOTAL PROVISIONS 2,303 2,307 i Employee benefits consist of amounts for accrued days off, annual leave and long service leave accrued by employees, not including on-costs. ii The amounts disclosed are nominal amounts. iii The amounts disclosed are discounted to present values. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 3.4: Employee Benefits in the Balance Sheet
(a) Employee Benefits and Related On-Costs Total Total 2020 2019 Current Employee Benefits and Related On-Costs $'000 $'000 Unconditional long service leave entitlements 1,204 1,333 Annual leave entitlements 811 709 Accrued days off 14 10 Total Current Employee Benefits and Related On-Costs 2,029 2,052 Non-Current Employee Benefits and Related On-Costs
Conditional long service leave entitlements 274 255 Total Non-Current Employee Benefits and Related On-Costs 274 255
TOTAL EMPLOYEE BENEFITS AND RELATED ON-COSTS 2,303 2,307
(b) Movement in On-Costs Provision Total Total 2020 2019 $'000 $'000 Balance at start of year 228 195 Additional provisions recognised 229 248 Unwinding of discount and effect of changes in the discount - 11 rate Reduction due to transfer out (229) (226) Balance at end of year 228 228
Employee Benefit Recognition Provision is made for benefits accruing to employees in respect of accrued days off, annual leave and long service leave for services rendered to the reporting date as an expense during the period the services are delivered. Provisions Provisions are recognised when Corryong Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
Annual Leave and Accrued Days Off Liabilities for annual leave and accrued days off are recognised in the provision for employee benefits as 'current liabilities' because Corryong Health does not have an unconditional right to defer settlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for annual leave and accrued days off are measured at: • Nominal value – if Corryong Health expects to wholly settle within 12 months; or • Present value – if Corryong Health does not expect to wholly settle within 12 months. Long Service Leave The liability for long service leave (LSL) is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability even where the Corryong Health does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. An unconditional right arises after a qualifying period.
The components of this current LSL liability are measured at: • Nominal value – if Corryong Health expects to wholly settle within 12 months; or • Present value – if Corryong Health does not expect to wholly settle within 12 months. Conditional LSL is disclosed as a non-current liability. Any gain or loss followed revaluation of the present value of non- current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in estimations e.g. bond rate movements, inflation rate movements and changes in probability factors which are then recognised as other economic flows. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 3.4: Employee Benefits in the Balance Sheet Termination Benefits Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment. On-Costs Related to Employee Benefits Provision for on-costs such as workers compensation and superannuation are recognised separately from provisions for employee benefits.
Note 3.5: Superannuation
Paid Contribution for the Contribution Outstanding Year at Year End Total Total Total Total 2020 2019 2020 2019 $'000 $'000 $'000 $'000 Defined Benefit Plans:i First State Super 17 18 1 1 Defined Contribution Plans: First State Super 512 429 47 38 Hesta 71 60 7 5 Other 184 149 15 15 Total 784 656 70 59 i The basis for determining the level of contributions is determined by the various actuaries of the defined benefit superannuation plans.
Employees of Corryong Health are entitled to receive superannuation benefits and it contributes to both defined benefit an defined contribution plans. The defined benefit plan provides benefits based on years of service and final average salary.
Defined Benefit Superannuation Plans The amount charged to the Comprehensive Operating Statement in respect of defined benefit superannuation plans represents the contributions made by Corryong Health to the superannuation plans in respect of the services of current Corryong Health’s staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan and are based upon actuarial advice. Corryong Health does not recognise any unfunded defined benefit liability in respect of the plans because the health service has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefits liabilities in its disclosure for administered items. However superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Comprehensive Operating Statement of Corryong Health. The name, details and amounts that have been expensed in relation to the major employee superannuation funds and contributions made by Corryong Health are disclosed above. Defined Contribution Superannuation Plans
In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred. Corryong Health Notes to the Financial Statements Note 4: Key Assets to support service delivery for the financial year ended 30 June 2020 Corryong Health controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They represent the key resources that have been entrusted to Corryong Health to be utilised for delivery of those outputs. Structure 4.1 Property, plant & equipment 4.2 Intangible assets 4.3 Depreciation and amortisation
Note 4.1: Property, plant and equipment Initial Recognition Items of property, plant and equipment are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment loss. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government change are transferred at their carrying amounts. The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of variable and fixed overheads. The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements. The initial cost for non-financial physical assets under a lease (refer to Note 6.1) is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best uses. Land and buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and accumulated impairment loss. Right-of-use asset acquired by lessees (Under AASB 16 – Leases from 1 July 2019) – Initial measurement Corryong Health recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost which comprises the initial amount of the lease liability adjusted for:
• any lease payments made at or before the commencement date; plus • any initial direct costs incurred; and • an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received. Subsequent measurement : Property, plant and equipment (PPE) as well as right-of-use assets under leases and service concession assets are subsequently measured at fair value less accumulated depreciation and impairment. Fair value is determined with regard to the asset’s highest and best use (considering legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset) and is summarised on the following page by asset category. Right-of-use asset – Subsequent measurement Corryong Health depreciates the right-of-use assets on a straight line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful life of the right-of-use assets are determined on the same basis as property, plant and equipment, other than where the lease term is lower than the otherwise assigned useful life. The right-of-use assets are also subject to revaluation as required by FRD 103I [pending] however as at 30 June 2020 right-of-use assets have not been revalued. In addition, the right-of-use asset is periodically reduced by impairment losses, if any and adjusted for certain remeasurements of the lease liability. Revaluations of Non-Current Physical Assets Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103H Non-financial Physical Assets . This revaluation process normally occurs every five years, based upon the asset's Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset’s carrying value and fair value.
Revaluation increments are recognised in ‘Other Comprehensive Income’ and are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result.
Revaluation decrements are recognised in ‘Other Comprehensive Income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Revaluations of Non-Current Physical Assets
Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Revaluation surplus is not transferred to accumulated funds on de-recognition of the relevant asset, except where an asset is transferred via contributed capital. In accordance with FRD 103H Non-financial physical assets, Corryong Health's non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.
Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For the purpose of fair value disclosures, Corryong Health has determined classes of assets on the basis of the nature, characteristics and risks of the asset and the level of the fair value hierarchy as explained above. In addition, Corryong Health determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Valuer-General Victoria (VGV) is Corryong Health’s independent valuation agency. The estimates and underlying assumptions are reviewed on an ongoing basis. Valuation hierarchy In determining fair values a number of inputs are used. To increase consistency and comparability in the financial statements, these inputs are categorised into three levels, also known as the fair value hierarchy. The levels are as follows:
• Level 1 – quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 – valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and • Level 3 – valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. Identifying unobservable inputs (level 3) fair value measurements Level 3 fair value inputs are unobservable valuation inputs for an asset or liability. These inputs require significant judgement and assumptions in deriving fair value for both financial and non-financial assets.
Unobservable inputs are used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, i.e., an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.
Consideration of highest and best use (HBU) for non-financial physical assets Judgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions on the use and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements. In accordance with AASB 13 Fair Value Measurement paragraph 29, Corryong Health has assumed the current use of a non- financial physical asset is its HBU unless market or other factors suggest that a different use by market participants would maximise the value of the asset. Non-Specialised Land, Non-Specialised Buildings Non-specialised land and non-specialised buildings are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value. For non-specialised land and non-specialised buildings, an independent valuation was performed by the Valuer-General Victoria to determine the fair value using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. An appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 30 June 2019. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Specialised Land and Specialised Buildings
Specialised land includes Crown Land which is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the assets are not taken into account until it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best use.
During the reporting period, Corryong Health held Crown Land. The nature of this asset means that there are certain limitations and restrictions imposed on its use and/or disposal that may impact their fair value. The market approach is also used for specialised land and specialised buildings although it is adjusted for the community service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore, these assets are classified as Level 3 under the market based direct comparison approach. The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets. For Corryong Health, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised buildings are classified as Level 3 for fair value measurements.
An independent valuation of Corryong Health’s specialised land and specialised buildings was performed by the Valuer- General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2019. Motor Vehicles The Corryong Health acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition use and disposal in the market is managed by the Health Service who set relevant depreciation rates during use to reflect the consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from the carrying amount (depreciated cost). Plant and Equipment Plant and equipment (including medical equipment, computers and communication equipment and furniture and fittings) are held at carrying amount (depreciated cost). When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying amount. There were no changes in valuation techniques throughout the period to 30 June 2020. For all assets measured at fair value, the current use is considered the highest and best use. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 4.1: Property, Plant and Equipment (a) Gross carrying amount and accumulated depreciation Total Total 2020 2019 $'000 $'000 Land - Crown 304 304 Land - Freehold 229 229 TOTAL LAND AT FAIR VALUE 533 533
Buildings at cost 183 - Less accumulated depreciation (2) - Sub-totals Buildings at Cost 181 -
Buildings at fair value 9,791 9,791 Less accumulated depreciation (864) - Sub-totals Buildings at Fair Value 8,927 9,791
Building work in progress at cost 165 280 TOTAL BUILDINGS 9,273 10,071
Plant and equipment at fair value 2,945 2,413 Less accumulated depreciation (1,505) (1,312) TOTAL PLANT AND EQUIPMENT 1,440 1,101
Motor vehicles at fair value 25 25 Less accumulated depreciation (25) (25) TOTAL MOTOR VEHICLES - -
Medical equipment at fair value 1,512 1,480 Less accumulated depreciation (1,131) (1,036) TOTAL MEDICAL EQUIPMENT 381 444
Computers and communication equipment at fair value 837 760 Less accumulated depreciation (714) (658) TOTAL COMPUTERS AND COMMUNICATION EQUIPMENT 123 102
Furniture and fittings at fair value 936 894 Less accumulated depreciation (794) (766) TOTAL FURNITURE AND FITTINGS 142 128
Leased/Right of use- plant, equipment, furniture and fittings and vehicles 312 85 Less accumulated depreciation (75) (61) TOTAL RIGHT OF USE - PLANT, EQUIPMENT, FURNITURE AND FITTINGS AND VEHICLES 237 24
TOTAL PROPERTY, PLANT AND EQUIPMENT 12,129 12,403 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.1: Property, Plant and Equipment (Continued)
(b) Reconciliations of the carrying amounts of each class of asset
Computers & Leased/ Communica Right of Plant & Motor Medical tion Furniture & use - PPE, Assets under Total Note Land Buildings equipment vehicles Equipment Equipment Fittings F&V construction Total $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2018 383 7,928 698 - 527 - - 27 - 9,563 Additions - 264 805 - 17 - - 14 - 1,100 Revaluation increments/(decrements) 150 2,583 ------2,733 Net Transfers between classes - (280) (301) - - 136 158 7 280 - Depreciation 4.3 - (704) (101) - (100) (34) (30) (24) - (993) Balance at 30 June 2019 4.1 (a) 533 9,791 1,101 - 444 102 128 24 280 12,403
Recognition of right-of-use assets on ------85 - 85 initial application of AASB 16 Adjusted balance at 1 July 2019 533 9,791 1,101 - 444 102 128 109 280 12,488 Additions - 69 463 - 32 69 43 204 - 880 Net Transfers between classes - 115 ------(115) - Depreciation 4.3 - (866) (123) - (95) (48) (28) (79) - (1,239) Balance at 30 June 2020 4.1 (a) 533 9,109 1,441 - 381 123 143 234 165 12,129
Land and Buildings and Leased Assets Carried at Valuation The Valuer-General Victoria undertook to re-value all of Corryong Health buildings to determine their fair value. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments. The effective date of the valuation was 30 June 2019. In compliance with FRD 103H, in the year ended 30 June 2020, Corryong Health's management conducted an annual assessment of the fair value of land and buildings and leased buildings. To facilitate this, management obtained from the Department of Treasury and Finance the Valuer General Victoria indices for the financial year ended 30 June 2020. The fair value of the land and buildings had been adjusted by an independent assessment in 2019. The latest indices did not identify that a further revaluation was required in 2020. In undertaking this assessment, management considered whether the impact of Covid on the fair value of property may not have been reflected in the indices for the financial year and concluded the effect cannot yet be fully understood. In the absence of evidence to undermine the reliability of the indices, management have not altered their estimates of fair value as determined using the indices. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.1: Property, Plant and Equipment (Continued)
Fair value measurement at end of reporting (c) Fair value measurement hierarchy for assets Total period using: Carrying Note Amount Level 1 i Level 2 i Level 3 i Balance at 30 June 2020 $'000 $'000 $'000 $'000 - Non-specialised land 229 - 229 - - Specialised land 304 - - 304 Total Land at Fair Value 4.1 (a) 533 - 229 304
- Non-specialised buildings 1,021 1,021 - Specialised buildings 8,087 - - 8,087 Total Building at Fair Value 4.1 (a) 9,108 - 1,021 8,087
Plant and equipment at fair value 4.1 (a) 1,440 - - 1,440 Motor vehicles at fair value 4.1 (a) - - Medical equipment at Fair Value 4.1 (a) 381 - - 381 Computers and communication equipment at fair value 4.1 (a) 123 - - 123 Furniture and fittings at fair value 4.1 (a) 142 - - 142 Leased/Right of use PPE, furniture & fittings and vehicles 4.1 (a) 237 237 - Total Other Plant and Equipment at Fair Value 2,323 - 237 2,086 Total Property, Plant and Equipment 11,964 - 1,487 10,477 i Classified in accordance with the fair value hierarchy. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.1: Property, Plant and Equipment (Continued) Fair value measurement at end of reporting period using: Total Carrying Amount Level 1 i Level 2 i Level 3 i Balance at 30 June 2019 $'000 $'000 $'000 $'000 - Non-specialised land 229 - 229 - - Specialised land 304 - - 304 Total Land at Fair Value 4.1 (a) 533 - 229 304
- Non-specialised buildings 1,021 1,021 - Specialised buildings 8,770 - - 8,770 Total Building at Fair Value 4.1 (a) 9,791 - 1,021 8,770
Plant and equipment at fair value 4.1 (a) 1,101 - - 1,101 Motor vehicles at fair value 4.1 (a) - - ComputersMedical equipment and communication at Fair Value equipment at fair 4.1 (a) 444 - - 444 value 4.1 (a) 102 - - 102 Furniture and fittings at fair value 4.1 (a) 128 - - 128 Leased Assets 4.1 (a) 24 24 - Total other plant and equipment at fair value 1,799 - 24 1,775 Total Property, Plant and Equipment 12,123 - 1,274 10,849 i Classified in accordance with the fair value hierarchy. ii There has been a transfer between level 3 to level 2 for leased assets during the period. In the prior year, there is a transfer between non-specialised land and specialised land to reflect the correct fair value as per the managerial revaluation in 2019. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.1: Property, Plant and Equipment (Continued)
(d) Reconciliation of Level 3 Fair Value i
Land Buildings Plant & Motor Medical Computers & Furniture & Equipment Vehicles Equipment Comm Fittings Total Note $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2018 4.1 (b) 383 7,928 698 - 527 - - Additions/(Disposals) 4.1 (b) - 264 805 - 17 - - Assets provided free of charge ------Net Transfers between classes 4.1 (b) - (280) (301) - - 136 158 Gains/(Losses) recognised in net result - Depreciation and amortisation 4.3 - (704) (101) - (100) (34) (30) - Impairment loss ------Items recognised in other comprehensive income - Revaluation 150 2,583 - - - - - Balance at 30 June 2019 4.1 ( c ) 533 9,791 1,101 - 444 102 128 Additions/(Disposals) 4.1 (b) - 69 463 - 32 69 43 Assets provided free of charge ------Net Transfers between classes 4.1 (b) - 115 - - - - - Gains/(Losses) recognised in net result - Depreciation and Amortisation 4.3 - (866) (123) - (95) (48) (28) - Impairment loss ------Items recognised in other comprehensive income - Revaluation ------Balance at 30 June 2020 4.1 ( c ) 533 9,109 1,441 - 381 123 143 i Classified in accordance with the fair value hierarchy, refer Note 4.1(c). Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.1: Property, Plant and Equipment (Continued) Note 4.1 (e): Property, Plant and Equipment (Fair value determination)
Significant inputs Asset class Likely valuation approach (Level 3 only)(c) Non‑specialised land Market approach n.a. Community Service Specialised land (Crown / Freehold) Market approach Obligations Adjustments (a) Non‑specialised buildings Market approach n.a. - Cost per Specialised buildings Depreciated replacement cost approach square metre - Useful life Market approach n.a.
Dwellings - Cost per Depreciated replacement cost approach square metre - Useful life Market approach n.a. Vehicles - Cost per Depreciated replacement cost approach unit - Useful life - Cost per Plant and equipment Depreciated replacement cost approach unit - Useful life a A community Service Obligation (CSO) of 20% was applied to Corryong Health's specialised land classified in accordance with the fair value hierarchy. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.1: Property, Plant and Equipment (Continued) Note 4.1 (f): Property, Plant and Equipment Revaluation Surplus
Total Total 2020 2019 Note $'000 $'000 Property, Plant and Equipment Revaluation Surplus Balance at the beginning of the reporting period 8,667 5,934 Revaluation Increment - Land 4.1 (b) - 150 - Buildings 4.1 (b) - 2,583 Balance at the end of the Reporting Period* 8,667 8,667
* Represented by: - Land 337 337 - Buildings 8,330 8,330 8,667 8,667 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.2: Intangible Assets (a) Intangible assets - Gross carrying amount and accumulated amortisation
2020 2019 Note $'000 $'000 Intangible Assets - Software 32 30 Less Accumulated Amortisation (16) (11) 16 19
TOTAL INTANGIBLE ASSETS 16 19
(b) Reconciliation of the carrying amounts of intangible assets at the beginning and end of the previous and current financial year:
Software Total Note $'000 $'000 Balance at 1 July 2018 - - Additions 23 23 Amortisation 4.3 (4) (4) Balance at 1 July 2019 19 19 Additions 2 2 Amortisation 4.3 (5) (5) Balance at 30 June 2020 16 16
Note 4.2: Intangible Assets Intangible assets represent identifiable non-monetary assets without physical substance such as computer software.
Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Corryong Health. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 4.3: Depreciation and Amortisation Total Total 2020 2019 $'000 $'000 Depreciation Buildings 866 704 Plant and equipment 123 101 Medical equipment 95 100 Computers and communication equipment 48 34 Furniture and fittings 28 30 Right of use assets - Right of use plant, equipment and vehicles 79 24 Total Depreciation 1,239 993 Amortisation Software 5 4 Total Amortisation 5 4
Total Depreciation and Amortisation 1,244 997
Depreciation All buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases and land) that have finite useful lives are depreciated. Depreciation is generally calculated on a straight-line basis at rates that allocate the asset’s value, less any estimated residual value over its estimated useful life.
Right-of use assets are depreciated over the shorter of the asset’s useful life and the lease term. Where Corryong Health obtains ownership of the underlying leased asset or if the cost of the right-of-use asset reflects that the entity will exercise a purchase option, the entity depreciates the right-of-use asset overs its useful life. Amortisation Amortisation is the systematic allocation of the depreciable amount of an asset over its useful life. The following table indicates the expected useful lives of non-current assets on which the depreciation and amortisation charges are based.
Note 4.3 (a): Useful life of Non-current Assets 2020 2019 Buildings - Structure shell building fabric 10 to 50 years 10 to 50 years - Site engineering services and central plant 10 to 40 years 10 to 40 years Central Plant - Fit out 7 to 30 years 7 to 30 years - Trunk reticulated building system 8 to 30 years 8 to 30 years Plant and equipment 3 to 30 years 3 to 30 years Medical equipment 4 to 20 years 4 to 20 years Computers and communication 3 to 12 years 3 to 12 years Furniture and fittings 5 to 20 years 5 to 20 years Motor vehicles 4 to 7 years 4 to 7 years Intangible assets 3 to 4 years 3 to 4 years Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 5: Other assets and liabilities This section sets out those assets and liabilities that arose from Corryong Health's operations.
Structure 5.1 Receivables and contract assets 5.2 Payables 5.3 Other liabilities
Note 5.1: Receivables
Total Total 2020 2019 Notes $'000 $'000 CURRENT Contractual Trade Debtors 3 41 Patient Fees 117 145 Amounts receivable from governments and agencies 5 - Allowance for Impairment 5.1(a) - Patient Fees 7.1(c ) (2) (11) Sub-Total Contractual Receivables 123 175 Statutory GST Receivable 77 121 Sub-Total Statutory Receivables 77 121 TOTAL CURRENT RECEIVABLES 200 296
NON-CURRENT Statutory Long service leave - Department of Health and Human Services (53) 207 Sub-Total Statutory Receivables (53) 207 TOTAL NON-CURRENT RECEIVABLES (53) 207 TOTAL RECEIVABLES 147 503 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 5.1: Receivables
(a) Movement in the Allowance for impairment losses of contractual receivables
Total Total 2020 2019 $'000 $'000 Balance at beginning of year 11 51 Increase/(decrease) in allowance recognised in the net result (9) (40)
Balance at end of year 2 11
Increase/(Decrease) in allowance recognised in the net result (9) (40)
Receivables recognition Receivables consist of: Contractual receivables are classified as financial instruments and categorised as ‘financial assets at amortised costs’. They are initially recognised at fair value plus any directly attributable transaction costs. Corryong Health holds the contractual receivables with the objective to collect the contractual cash flows and therefore subsequently measured at amortised cost using the effective interest method, less any impairment. Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments for disclosure purposes. Corryong Health applies AASB 9 for initial measurement of the statutory receivables and as a result statutory receivables are initially recognised at fair value plus any directly attributable transaction cost.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets . Corryong Health is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates, management consider the credit quality of trade receivables that are not past due or impaired to be good. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 5.2: Payables Total Total 2020 2019 $'000 $'000 CURRENT Notes Contractual Trade creditors 284 257 Accrued salaries and wages 235 150 Accrued expenses 196 190 Deferred grant revenue 5.2(a) 222 - Contract Liabilities - income received in advance 5.2(b) 607 21 Inter- hospital creditors 49 - 1,593 618 Statutory Department of Health and Human Services 427 170 Superannuation Obligations Payable 70 14 Australian Taxation Office - 149 497 333 TOTAL CURRENT PAYABLES 2,090 951
TOTAL PAYABLES 2,090 951
Payables consist of: • contractual payables, classified as financial instruments and measured at amortised cost. Accounts payable and salaries and wages payable represent liabilities for goods and services provided to the Corryong Health prior to the end of the financial year that are unpaid; and
• statutory payables, that are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from contracts.
The normal credit terms for accounts payable are usually Nett 60 days.
Note 5.2 (a) Deferred grant revenue 2020 $'000 Grant consideration for capital works recognised that was included in the deferred grant liability balance (adjusted for AASB 1058) at the beginning of the year - Grant consideration for capital works received during the year 222
Grant revenue for capital works recognised consistent with the capital works undertaken during the year - Closing balance of deferred grant consideration received for capital works 222
Grant consideration was received for major infrastructure works. Grant revenue is recognised progressively as the asset is constructed, since this is the time when Corryong Health satisfies its obligations under the transfer by controlling the asset as and when it is constructed. The progressive percentage costs incurred is used to recognise income because this most closely reflects the progress to completion as costs are incurred as the works are done. (see note 2.1) As a result, Corryong Health has deferred recognition of a portion of the grant consideration received as a liability for the outstanding obligations. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 5.2 (b) Contract liabilities 2020 $'000 Opening balance brought forward from 30 June 2019 adjusted for AASB 15 21 Add: Payments received for performance obligations yet to be completed during the period 586 Total contract liabilities 607 Represented by Current contract liabilities 607
Contract liabilities include consideration received in advance from customers in respect of specified targets and outcomes. Invoices are raised once the goods and services are delivered/provided.
Maturity analysis of payables Please refer to Note 7.1(b) for the ageing analysis of payables.
Note 5.3: Other liabilities
Total Total 2020 2019 $'000 $'000 CURRENT Monies held in trust*: Refundable accommodation deposits 3,434 1,834 Total Current 3,434 1,834
Total Other Liabilities 3,434 1,834
* Total Monies Held in Trust Represented by the Following Assets: Cash assets 3,434 1,834 TOTAL 3,434 1,834
Refundable Accommodation Deposit (“RAD”)/Accommodation Bond liabilities RADs/accommodation bonds are non-interest-bearing deposits made by some aged care residents to the Health Service upon admission. These deposits are liabilities which fall due and payable when the resident leaves the home. As there is no unconditional right to defer payment for 12 months, these liabilities are recorded as current liabilities.
RAD/accommodation bond liabilities are recorded at an amount equal to the proceeds received, net of retention and any other amounts deducted from the RAD/accommodation bond in accordance with the Aged Care Act 1997. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 6: How we finance our operations
This section provides information on the sources of finance utilised by Corryong Health during its operations, along with interest expenses (the cost of borrowings) and other information related to financing activities of Corryong Health.
This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note 7.1 provides additional, specific financial instrument disclosures.
Structure 6.1 Borrowings 6.2 Cash and cash equivalents 6.3 Commitments for expenditure
Note 6.1: Borrowings Total Total 2020 2019 $'000 $'000 CURRENT Lease liability (i) 81 13 Total Current Borrowings 81 13 NON CURRENT Lease liability (i) 158 11 Total Non Current Borrowings 158 11 Total Borrowings 239 24
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
(a) Maturity Analysis of Borrowings Please refer to Note 7.1 for the ageing analysis of borrowings. (b) Defaults and Breaches During the current and prior year, there were no defaults and breaches of any of the borrowings.
(c) Lease Liabilities Repayments in relation to leases are payable as follows: Minimum future lease Present value of minimum payments future lease payments 2020 2019 2020 2019 $'000 $'000 $'000 $'000 Not later than one year 95 16 95 16 Later than 1 year and not later than 5 years 164 12 158 12 Minimum lease payments 259 28 253 28 Less future finance charges (20) (4) (20) (4) TOTAL 239 24 233 24
Included in the financial statements as: Current borrowings - lease liability 81 13 81 13 Non-current borrowings - lease liability 158 11 152 11 TOTAL 239 24 233 24
The weighted average interest rate implicit in the finance lease is 4.73% (2019: 5.86%). Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 6.1: Borrowings (continued) Leases A lease is a right to use an asset for an agreed period of time in exchange for payment. All leases are recognised on the balance sheet, with the exception of low value leases (less than $10,000 AUD) and short term leases of less than 12 months. Corryong Health’s leasing activities Corryong Health has entered into leases related to motor vehicles and also leases associated with Hume Rural Health Alliance. For any new contracts entered into on or after 1 July 2019, Corryong Health considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition Corryong Health assesses whether the contract meets three key evaluations which are whether: · the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to Corryong Health and for which the supplier does not have substantive substitution rights; · Corryong Health has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract and Corryong Health has the right to direct the use of the identified asset throughout the period of use; and · Corryong Health has the right to take decisions in respect of ‘how and for what purpose’ the asset is used throughout the period of use. This policy is applied to contracts entered into, or changed, on or after 1 July 2019. Separation of lease and non-lease components At inception or on reassessment of a contract that contains a lease component, the lessee is required to separate out and account separately for non-lease components within a lease contract and exclude these amounts when determining the lease liability and right- of-use asset amount. Recognition and measurement of leases as a lessee (under AASB 16 from 1 July 2019) Lease Liability – initial measurement The lease liability is initially measured at the present value of the lease payments unpaid at the commencement date, discounted using the interest rate implicit in the lease if that rate is readily determinable or Corryong Health incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments (including in-substance fixed payments) less any lease incentive receivable; • variable payments based on an index or rate, initially measured using the index or rate as at the commencement date; • amounts expected to be payable under a residual value guarantee; and • payments arising from purchase and termination options reasonably certain to be exercised. Lease Liability – subsequent measurement Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification, or if there are changes in-substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right of use asset is already reduced to zero. Short-term leases and leases of low value assets Corryong Health has elected to account for short-term leases and leases of low value assets using the practical expedients. Instead of recognising a right of use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on a straight line basis over the lease term. Below market/Peppercorn lease Corryong Health has no material below market/peppercorn leases.
Right-of-use assets under leases at significantly below-market terms and conditions that are entered into principally to enable Corryong Health to further its objectives, are initially and subsequently measured at cost. These right-of-use assets are depreciated on a straight line basis over the shorter of the lease term and the estimated useful lives of the assets. Presentation of right-of-use assets and lease liabilities Corryong Health presents right-of-use assets as ‘property plant equipment’ unless they meet the definition of investment property, in which case they are disclosed as ‘investment property’ in the balance sheet. Lease liabilities are presented as ‘borrowings’ in the balance sheet. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 6.1: Borrowings (continued) Recognition and measurement of leases (under AASB 117 until 30 June 2019) In the comparative period, leases of property, plant and equipment were classified as either finance lease or operating leases.
Corryong Health determined whether an arrangement was or contained a lease based on the substance of the arrangement and required an assessment of whether fulfilment of the arrangement is dependent on the use of the specific asset(s); and the arrangement conveyed a right to use the asset(s). Leases of property, plant and equipment where Corryong Health as a lessee had substantially all of the risks and rewards of ownership were classified as finance leases. finance leases were initially recognised as assets and liabilities at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The leased asset is accounted for as a non-financial physical asset and depreciated over the shorter of the estimated useful life of the asset or the term of the lease. Minimum finance lease payments were apportioned between the reduction of the outstanding lease liability and the periodic finance expense, which is calculated using the interest rate implicit in the lease and charged directly to the consolidated comprehensive operating statement. Contingent rentals associated with finance leases were recognised as an expense in the period in which they are incurred.
Assets held under other leases were classified as operating leases and were not recognised in Corryong Health balance sheet. Operating lease payments were recognised as an operating expense in the Statement of Comprehensive Income on a straight-line basis over the lease term. Operating lease payments up until 30 June 2019 (including contingent rentals) are recognised on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. From 1 July 2019, the following lease payments are recognised on a straight-line basis:
· Short-term leases – leases with a term less than 12 months; and
· Low value leases – leases with the underlying asset’s fair value (when new, regardless of the age of the asset being leased) is no more than $10,000. Variable lease payments not included in the measurement of the lease liability (i.e. variable lease payments that do not depend on an index or a rate, initially measured using the index or rate as at the commencement date). These payments are recognised in the period in which the event or condition that triggers those payments occur.
Other leasing arrangements in 2019: The other leases relate to equipment with lease terms of varying years. Corryong Health has options to purchase the equipment at the conclusion of the lease agreements. Some leases provide for additional rent payments based on changes in a local price index.
Entity as lessee Leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease assets under the PPP arrangement are accounted for as a non-financial physical asset and is depreciated over the term of the lease plus five years. Minimum lease payments are apportioned between reduction of the outstanding lease liability, and the periodic finance expense which is calculated using the interest rate implicit in the lease, and charged directly to the Comprehensive Operating Statement. Contingent rentals associated with leases are recognised as an expense in the period in which they are incurred. Borrowings All borrowings are initially recognised at fair value of the consideration received, less directly attributable transaction costs. The measurement basis subsequent to initial recognition depends on whether the Corryong Health has categorised its liability as either ‘financial liabilities designated at fair value through profit or loss’, or financial liabilities at ‘amortised cost’. Subsequent to initial recognition, interest bearing borrowings are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in the net result over the period of the borrowing using the effective interest method. Non-interest bearing borrowings are measured at ‘fair value through profit or loss’. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 6.2: Cash and Cash Equivalents
Total Total 2020 2019 $'000 $'000 Cash at Bank (excluding monies held in trust) 141 419 Cash at Bank (monies held in trust) 312 - Cash at Bank - CBS (excluding monies held in trust) 7,173 4,096
TOTAL CASH AND CASH EQUIVALENTS 7,626 4,515 Cash and Cash Equivalents
Cash and cash equivalents recognised on the Balance Sheet comprise cash on hand and in banks, deposits at call and highly liquid investments (with an original maturity date of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.
For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities on the balance sheet. The cash flow statement includes monies held in trust.
Note 6.3 : Commitments for expenditure 2020 2019 $'000 $'000
Capital Expenditure Commitments Less than 1 year 98 37 Total Capital Expenditure Commitments 98 37
Non-cancellable Short Term and low value lease commitments Less than 1 year 1 120 Longer than 1 year but not longer than 5 years - 57 5 years or more - - Total Non-cancellable Lease Commitments 1 177
Total Commitments for Expenditure (inclusive of GST) 99 214 Less GST recoverable from the Australian Tax Office (9) (19) TOTAL COMMITMENTS FOR EXPENDITURE (exclusive of GST) 90 195 Future finance lease payments are recognised on the balance sheet, refer to Note 6.1 Borrowings.
Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed at their nominal value and are inclusive of the GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the Balance Sheet. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 7: Risks, contingencies and valuation uncertainties Corryong Health is exposed to risk from its activities and outside factors. In addition, it is often necessary to make judgements and estimates associated with recognition and measurement of items in the financial statements. This section sets out financial instrument specific information, (including exposures to financial risks) as well as those items that are contingent in nature or require a higher level of judgement to be applied, which for the health service is related mainly to fair value determination.
Structure 7.1 Financial Instruments 7.2 Contingent Assets and Contingent Liabilities
Note 7.1 (a): Financial Instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of Corryong Health's activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation
(a) Categorisation of financial instruments
Financial Financial Assets at Liabilities at Amortised Amortised Total Cost Cost Total 2020 Note $'000 $'000 $'000 Contractual Financial Assets Cash and Cash Equivalents 6.2 7,626 - 7,626 Receivables - Trade Debtors 5.1 3 - 3 Other Receivables 5.1 122 - 122 Total Financial Assets i 7,751 - 7,751
Financial Liabilities Payables 5.2 - 764 764 Borrowings 6.1 - 239 239 Other Financial Liabilities - Refundable Accommodation Deposits 5.3 - 3,434 3,434
Total Financial Liabilities i - 4,437 4,437 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 7.1 (a): Financial Instruments (a) Categorisation of financial instruments
Financial Financial Assets at Liabilities at Amortised Amortised Total Cost Cost Total 2019 Note $'000 $'000 $'000 Contractual Financial Assets Cash and Cash Equivalents 6.2 4,515 - 4,515 Receivables - Trade Debtors 5.1 41 - 41 Other Receivables 5.1 145 - 145 Total Financial Assets i 4,701 - 4,701
Financial Liabilities Payables 5.2 - 597 597 Borrowings 6.1 - 24 24 Other Financial Liabilities - Refundable Accommodation Deposits 5.3 - 1,834 1,834
Total Financial Liabilities i - 2,455 2,455 i The carrying amount excludes statutory receivables (i.e. GST receivable and DHHS receivable) and statutory payables (i.e. Revenue in Advance and DHHS payable).
Categories of Non-Derivative Financial Instruments
Financial assets at amortised cost Financial assets are measured at amortised costs if both of the following criteria are met and the assets are not designated as fair value through net result: • the assets are held by Corryong Health to collect the contractual cash flows, and • the assets’ contractual terms give rise to cash flows that are solely payments of principal and interests. These assets are initially recognised at fair value plus any directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method less any impairment. Corryong Health recognises the following assets in this category: • cash and deposits; • receivables (excluding statutory receivables); • term deposits; and Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Categories of financial liabilities
Financial assets and liabilities at fair value through net result are categorised as such at trade date, or if they are classified as held for trading or designated as such upon initial recognition. Financial instrument assets are designated at fair value through net result on the basis that the financial assets form part of a group of financial assets that are managed based on their fair values and have their performance evaluated in accordance with documented risk management and investment strategies. Financial instruments at fair value through net result are initially measured at fair value; attributable transaction costs are expensed as incurred. Subsequently, any changes in fair value are recognised in the net result as other economic flows unless the changes in fair value relate to changes in the Corryong Health Service’s own credit risk. In this case, the portion of the change attributable to changes in Corryong Health’s own credit risk is recognised in other comprehensive income with no subsequent recycling to net result when the financial liability is derecognised. Corryong Health recognises some debt securities that are held for trading in this category and designated certain debt securities as fair value through net result in this category.
Financial liabilities at amortised cost are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method. Corryong Health recognises the following liabilities in this category: • payables (excluding statutory payables); and • borrowings (including lease liabilities).
Derecognition of financial assets: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: the rights to receive cash flows from the asset have expired; or Corryong Health retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or Corryong Health has transferred its rights to receive cash flows from the asset and either:
• has transferred substantially all the risks and rewards of the asset; or • has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. Where Corryong Health has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of Corryong Health’s continuing involvement in the asset. Derecognition of financial liabilities: A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an ‘other economic flow’ in the comprehensive operating statement.
Reclassification of financial instruments: Subsequent to initial recognition reclassification of financial liabilities is not permitted. Financial assets are required to reclassified between fair value through net result, fair value through other comprehensive income and amortised cost when and only when Corryong Health’s business model for managing its financial assets has changes such that its previous model would no longer apply. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 7.1 (b): Payables and Borrowings Maturity Analysis The following table discloses the contractual maturity analysis for Corryong Health's financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.
Maturity analysis of Financial Liabilities as at 30 June Maturity Dates Carrying Nominal Less than 1 1-3 Months 3 months - 1 1-5 Years Over 5 Note Amount Amount Month Year years 2020 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial Liabilities at amortised cost Payables 5.2 764 764 764 - - - - Borrowings 6.1 239 239 6 12 54 167 - Other Financial Liabilities - Refundable Accommodation Deposits 5.3 3,434 3,434 - - 3,434 - - Total Financial Liabilities 4,437 4,437 770 12 3,488 167 -
2019 Financial Liabilities at amortised cost Payables 5.2 597 597 597 - - - - Borrowings 6.1 24 24 2 6 16 - - Other Financial Liabilities - Refundable Accommodation Deposits 5.3 1,834 1,834 - - 1,834 - - Total Financial Liabilities 2,455 2,455 599 6 1,850 - -
(i) Ageing analysis of financial liabilities excludes statutory financial liabilities (i.e. GST payable)
Note 7.1 (c ) Contractual receivables at amortised cost
1–5 1-Jul-19 Current Less than 1 month 1–3 months 3 months –1 year Total Note years Expected loss rate 1.0% 4.0% 10.0% 25.0% Gross carrying amount of contractual receivables ($'000s) 5.1 186 75 74 14 23 - 186 Loss allowance (1) (3) (1) (6) - (11)
1–5 30-Jun-20 Current Less than 1 month 1–3 months 3 months –1 year Total years Expected loss rate 1.5% 4.0% 10.0% 25.0% 0.0% Gross carrying amount of contractual receivables 5.1 125 125 - - - - 125 Loss allowance (2) - - - - (2) Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 7.1 (c ) Contractual receivables at amortised cost (Continued)
Impairment of financial assets under AASB 9 Financial Instruments Corryong Health records the allowance for expected credit loss for the relevant financial instruments, in accordance with AASB 9 Financial Instruments ‘Expected Credit Loss’ approach. Subject to AASB 9 Financial Instruments, impairment assessment includes the Corryong Health’s contractual receivables, statutory receivables and its investment in debt instruments. Equity instruments are not subject to impairment under AASB 9 Financial Instruments . Other financial assets mandatorily measured or designated at fair value through net result are not subject to impairment assessment under AASB 9 Financial Instruments . While cash and cash equivalents are also subject to the impairment requirements of AASB 9 Financial Instruments , any identified impairment loss would be immaterial. Contractual receivables at amortised cost The Corryong Health applies AASB 9 Financial Instruments simplified approach for all contractual receivables to measure expected credit losses using a lifetime expected loss allowance based on the assumptions about risk of default and expected loss rates. The Corryong Health has grouped contractual receivables on shared credit risk characteristics and days past due and select the expected credit loss rate based on Corryong Health’s past history, existing market conditions, as well as forward‑looking estimates at the end of the financial year. On this basis, the Corryong Health determines the opening loss allowance and the closing loss allowance at end of the financial year as disclosed above. Reconciliation of the movement in the loss allowance for contractual receivables
Note 2020 2019 Balance at beginning of the year ($'000s) 11 51 Increase/(Decrease) in provision recognised in the net result 3.1 (9) (40) Balance at end of the year 5.1 2 11
Credit loss allowance is classified as other economic flows in the net result. Contractual receivables are written off when there is no reasonable expectation of recovery and impairment losses are classified as a transaction expense. Subsequent recoveries of amounts previously written off are credited against the same line item.
In prior years, a provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified. A provision is made for estimated irrecoverable amounts from the sale of goods when there is objective evidence that an individual receivable is impaired. Bad debts considered as written off by mutual consent.
Statutory receivables and debt investments at amortised cost The Corryong Health’s non-contractual receivables arising from statutory requirements are not financial instruments. However, they are nevertheless recognised and measured in accordance with AASB 9 Financial Instruments requirements as if those receivables are financial instruments. Both the statutory receivables and investments in debt instruments are considered to have low credit risk, taking into account the counterparty’s credit rating, risk of default and capacity to meet contractual cash flow obligations in the near term. As a result, the loss allowance recognised for these financial assets during the period was limited to 12 months expected losses.
Note 7.2: Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.
There are no known contingent assets or contingent liabilities for Corryong Health at the date of this report. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 8: Other disclosures This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial report. Structure 8.1 Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities 8.2 Responsible persons disclosure 8.3 Remuneration of Executive Officers 8.4 Related Parties 8.5 Remuneration of Auditors 8.6 Events Occurring after the Balance Sheet Date 8.7 Jointly Controlled Operations 8.8 Economic Dependency 8.9 Changes in Accounting Policy, Revision of Estimates and Corrections of Prior Period Errors 8.10 AASBs Issued that are not yet Effective Note 8.1: Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities Total Total 2020 2019 Note $'000 $'000 Net Result for the Year OS (492) (486) Non-Cash Movements: Depreciation 4.3 1,239 993 Amortisation of Intangible Non-Produced Assets 4.3 5 4 Provision for Doubtful Debts 5.1 (a) (9) (40) Movements included in Investing and Financing Activities: Net (Gain)/Loss from Disposal of Non-Financial Physical Assets 3.2 - (29) Less cash inflow/outflow from investing and financing activities (60) - Movements in Assets and Liabilities: Change in Operating Assets and Liabilities (Increase)/Decrease in Receivables 5.1 365 (4) (Increase)/Decrease in Prepayments 20 (19) Increase/(Decrease) in Payables 5.2 1,139 358 (Increase)/Decrease in employee benefits (4) 295 NET CASH INFLOW FROM OPERATING ACTIVITIES 2,203 1,072 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 8.2: Responsible Persons Disclosure In accordance with the Ministerial Directions issued by the Assistant Treasurer under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period.
Period Responsible Ministers: The Honourable Jenny Mikakos, Minister for Health and Minister for Ambulance Services 01/07/2019 - 30/06/2020 The Honourable Martin Foley, Minister for Mental Health 01/07/2019 - 30/06/2020 The Honourable Luke Donnellan, Minister for Child Protection, Minister for Disability, Ageing and 01/07/2019 - 30/06/2020 Carers
Governing Boards R. Ruddick 01/07/2019 - 30/06/2020 S. Sullivan 01/07/2019 - 30/06/2020 A. Brown 01/07/2019 - 30/06/2020 T. Hammersley 01/07/2019 - 30/06/2020 J. Woodall 01/07/2019 - 30/06/2020 D. Culhane 01/07/2019 - 30/06/2020 F. Evans 01/07/2019 - 30/06/2020 I. Buffier 01/07/2019 - 30/06/2020 S. Owens 01/07/2019 - 30/06/2020 R. Bennetts 01/07/2019 - 30/06/2020
Accountable Officers
D. Sandilands (Chief Executive Officer) 01/07/2019 - 30/06/2020 Remuneration of Responsible Persons The number of Responsible Persons are shown in their relevant income bands:
Total Total 2020 2019 Income Band No. No. $0 - $9,999 10 6 $70,000 - $79,999 - 1 $200,000 - $209,999 - 1 $220,000 - $229,999 1 - Total Numbers 11 8
2020 2019 $'000 $'000 Total remuneration received or due and receivable by Responsible Persons from the $255 $297 reporting entity amounted to:
Amounts relating to the Governing Board Members and Accountable Officer are disclosed in Corryong Healths' financial statements. Amounts relating to Responsible Ministers are reported within the Department of Parliamentary Services' Financial Report. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 8.3: Remuneration of Executives The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.
Remuneration of Executive Officers Total Remuneration (including Key Management Personnel Disclosed in Note 8.4) 2020 2019 $'000 $'000 Short-term Benefits 398 410 Post-employment Benefits 31 35 Other Long-term Benefits 9 4 Termination Benefits - - i Total Remuneration 438 449
Total Number of Executives 3 4
Total Annualised Employee Equivalent ii 2.4 3.4
i The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of Corryong Health under AASB 124 Related Party Disclosures and are also reported within Note 8.4 Related Parties. ii Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.
Total remuneration payable to executives during the year included additional executive officers and a number of executives who received bonus payments during the year. These bonus payments depend on the terms of individual employment contracts. Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is disclosed in the following categories: Short-term Employee Benefits Salaries and wages, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services. Post-employment Benefits Pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased. Other Long-term Benefits Long service leave, other long-service benefit or deferred compensation. Termination Benefits Termination of employment payments, such as severance packages. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 8.4: Related Parties Corryong Health is a wholly owned and controlled entity of the State of Victoria. Related parties of the Corryong Health include: · All key management personnel (KMP) and their close family members; · Cabinet ministers (where applicable) and their close family members; · Jointly Controlled Operation - A member of a regional Information Technology Joint Venture; and · All hospitals and public sector entities that are controlled and consolidated into the State of Victoria financial statements.
KMPs are those people with the authority and responsibility for planning, directing and controlling the activities of Corryong Health, directly or indirectly.
The Board of Directors, Chief Executive Officer and the Executive Directors of Corryong Health are deemed to be KMPs.
KMPs Position Title R. Ruddick Chair of the Board S. Sullivan Board Member A. Brown Board Member T. Hammersley Board Member J. Woodall Board Member D. Culhane Board Member F. Evans Board Member I. Buffier Board Member S. Owens Board Member R. Bennetts Board Member D. Sandilands Chief Executive Officer K. Clarke Chief Finance Officer I. Bruce Director of Corporate Services M. Steen Director of Clinical Services
The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968 , and is reported within the Department of Parliamentary Services’ Financial Report.
Total Total 2020 2019 $'000 $'000 Compensation - KMPs Short-term Employee Benefits i 630 681 Post-employment Benefits 47 57 Other Long-term Benefits 16 8 Termination Benefits - - ii Total 693 746
i Total remuneration paid to KMPs employed as a contractor during the reporting period through accounts payable has been reported under short-term employee benefits. ii KMPs are also reported in Note 8.2 Responsible Persons or Note 8.3 Remuneration of Executives. Corryong Health Notes to the Financial Statements Note 8.4: Related Parties for the financial year ended 30 June 2020 Significant Transactions with Government Related Entities The Corryong Health received funding from the Department of Health and Human Services of $6.7M (2019: $5.42M). Expenses incurred by the Corryong Health in delivering services and outputs are in accordance with Health Purchasing Victoria requirements. Goods and services including procurement, diagnostics, patient meals and multi-site operational support are provided by other Victorian Health Service Providers on commercial terms. Professional medical indemnity insurance and other insurance products are obtained from the Victorian Managed Insurance Authority. The Standing Directions of the Assistant Treasurer require the Corryong Health to hold cash (in excess of working capital) in accordance with the State’s centralised banking arrangements. All borrowings are required to be sourced from Treasury Corporation Victorian unless an exemption has been approved by the Minister for Health and Human Services and the Treasurer.
Transactions with KMPs and Other Related Parties Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other members of the public e.g. stamp duty and other government fees and charges. Further employment of processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004 and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with the Victorian Government Procurement Board requirements. Outside of normal citizen type transactions with the Corryong Health, there were no related party transactions that involved key management personnel, their close family members and their personal business interests. No provision has been required, nor any expense recognised, for impairment of receivables from related parties. There were no related party transactions with Cabinet Ministers required to be disclosed in 2020.
There were no related party transactions required to be disclosed for the Corryong Health Board of Directors, Chief Executive Officer and Executive Directors in 2020.
Note 8.5: Remuneration of Auditors
Total Total 2020 2019 $'000 $'000
Victorian Auditor-General's Office
Audit of the Financial Statements 18 17
TOTAL REMUNERATION OF AUDITORS 18 17
Note 8.6: Events Occurring after the Balance Sheet Date
Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between Corryong Health and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period.
Adjustments are made to amounts recognised in the financial statements for events which occur between the end of the reporting period and the date when the financial statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period that are considered to be of material interest.
There are no events occurring after the Balance Sheet Date. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 8.7: Jointly Controlled Operations
Ownership Interest Name of Entity Principal Activity 2020 2019 % %
Hume Rural Health Information Technology 3.58 3.33 Alliance Corryong Healths' interest in the above jointly controlled operations are detailed below. The amounts are included in the financial statements under their respective categories:
Note 8.7: Jointly Controlled Operations 2020 2019 $'000 * $'000 * CURRENT ASSETS Cash and Cash Equivalents 312 222 Receivables 29 41 Prepayments 4 8 TOTAL CURRENT ASSETS 345 271
NON-CURRENT ASSETS Property, Plant and Equipment 22 35 Intangible Assets 16 19 TOTAL NON-CURRENT ASSETS 38 54 TOTAL ASSETS 383 325 CURRENT LIABILITIES Payables 150 117 Borrowings 6 13 TOTAL CURRENT LIABILITIES 156 130 NON-CURRENT LIABILITIES Borrowings 9 11 TOTAL NON-CURRENT LIABILITIES 9 11 TOTAL LIABILITIES 165 141
NET ASSETS 218 184
EQUITY Accumulated Surpluses/(Deficits) 218 184 TOTAL EQUITY 218 184
Corryong Healths' interest in revenues and expenses resulting from jointly controlled operations are detailed below:
2020 2019 $'000 * $'000 *
REVENUE Operating Activities 242 292 Non Operating Activities 2 3 Capital Purpose Income 61 - TOTAL REVENUE 305 295
EXPENSES Other Expenses from Continuing Operations 249 258 Expenditure from Capital Purpose Income - 2 Finance Lease Charges 1 1 Depreciation & Amortisation 21 27 TOTAL EXPENSES 271 288 NET RESULT 34 7
* Figures obtained from the unaudited Hume Rural Health Alliance Joint Venture annual report.
Contingent Liabilities and Capital Commitments There are no known contingent liabilities or capital commitments held by the jointly controlled operations at balance date. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 8.8: Economic Dependency Corryong Health is dependent on the Department of Health and Human Services for the majority of its revenue used to operate the entity. At the date of this report, the Board of Directors has no reason to believe the Department will not continue to support Corryong Health.
Note 8.9: Changes in accounting policy, revision of estimates and corrections of prior period errors Changes in accounting policy
Leases This note explains the impact of the adoption of AASB 16 Leases on Corryong Health’s financial statements. Corryong Health has applied AASB 16 with a date of initial application of 1 July 2019. Corryong Health has elected to apply AASB 16 using the modified retrospective approach, as per the transitional provisions of AASB 16 for all leases for which it is a lessee. The cumulative effect of initial application is recognised in retained earnings as at 1 July 2019. Accordingly, the comparative information presented is not restated and is reported under AASB 117 and related interpretations. Previously, Corryong Health determined at contract inception whether an arrangement is or contains a lease under AASB 117 and Interpretation 4 – ‘Determining whether an arrangement contains a Lease’. Under AASB 16, Corryong Health assesses whether a contract is or contains a lease based on the definition of a lease as explained in note 6.1. On transition to AASB 16, Corryong Health has elected to apply the practical expedient to grandfather the assessment of which transactions are leases. It applied AASB 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under AASB 117 and Interpretation 4 were not reassessed for whether there is a lease. Therefore, the definition of a lease under AASB 16 was applied to contracts entered into or changed on or after 1 July 2019. Leases classified as operating leases under AASB 117 As a lessee, Corryong Health previously classified leases as operating or finance leases based on its assessment of whether the lease transferred significantly all of the risks and rewards incidental to ownership of the underlying asset to Corryong Health. Under AASB 16, Corryong Health recognises right-of-use assets and lease liabilities for all leases except where exemption is availed in respect of short-term and low value leases. On adoption of AASB 16, Corryong Health recognised lease liabilities in relation to leases which had previously been classified as operating leases under the principles of AASB 117 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using Corryong Health’s incremental borrowing rate as of 1 July 2019. On transition, right-of-use assets are measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the balance sheet as at 30 June 2019. Corryong Health has elected to apply the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:
• Applied a single discount rate to a portfolio of leases with similar characteristics; • Adjusted the right-of-use assets by the amount of AASB 137 onerous contracts provision immediately before the date of initial application, as an alternative to an impairment review; • Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term;
• Excluded initial direct costs from measuring the right-of-use asset at the date of initial application; and
• Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease. For leases that were classified as finance leases under AASB 117, the carrying amount of the right-of-use asset and lease liability at 1 July 2019 are determined as the carrying amount of the lease asset and lease liability under AASB 117 immediately before that date. Impacts on financial statements On transition to AASB 16, Corryong Health recognised $84,648 of right-of-use assets and $84,648 of lease liabilities. When measuring lease liabilities, Corryong Health discounted lease payments using its incremental borrowing rate at 1 July 2019. The weighted average rate applied is 3.17%.
1-Jul-19
$'000 Total Operating lease commitments disclosed at 30 June 2019 177 Discounted using the incremental borrowing rate at 1 July 2019 -7
Finance lease liabilities as at 30 June 2019 170 Recognition exemption for: Short-term leases 0 Leases of low-value assets -85 Lease liabilities recognised at 1 July 2019 85 Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020
Note 8.9: Changes in accounting policy, revision of estimates and corrections of prior period errors Changes in accounting policy (continued)
Revenue from Contracts with Customers In accordance with FRD 121 requirements, Corryong Health assessed our revenue for application of the transitional provision of AASB 15, using the modified retrospective method with the cumulative effect of initially applying this standard against the opening retained earnings at 1 July 2019. Corryong Health did not consider there were any uncompleted contracts at the date of initial application. Corryong Health has not applied the fair value measurement requirements for right-of-use assets arising from leases with significantly below-market terms and conditions principally to enable the entity to further its objectives as allowed under temporary option under AASB 16 and as mandated by FRD 122. Income of Not-for-Profit Entities In accordance with FRD 122 requirements, Corryong Health assessed our revenue for application of the transitional provision of AASB 1058, using the modified retrospective method with the cumulative effect of initially applying this standard against the opening retained earnings at 1 July 2019. Corryong Health did not consider there were any uncompleted contracts at the date of initial application. The adoption of AASB 1058 did not have an impact on Other comprehensive income and the Statement of Cash flows for the financial year.
Transition impact on financial statements. This note explains the impact of the adoption of the following new accounting standards for the first time, from 1 July 2019: • AASB 15 Revenue from Contracts with Customers ; • AASB 1058 Income of Not-for-Profit Entities ; and • AASB 16 Leases. Impact on Balance Sheet due to the adoption of AASB 15, AASB 1058 and AASB 16 is illustrated with the following reconciliation between the restated carrying amounts at 30 June 2019 and the balances reported under the new accounting standards (AASB 15 and AASB 16) at 1 July 2019: Before new Impact of new After new accounting accounting accounting Balance sheet standards standards - standards Opening 1 July AASB 16, 15 & Opening 1 July 2019 1058 2019 Property, Plant and 12,403 85 12,488 Equipment Total other assets 7,519 - 7,519 Total Assets 19,922 85 20,007 Payables and Contract 5,092 - 5,092 Liabilities Borrowings 24 85 109 Total Liabilities 5,116 85 5,201 Accumulated (1,228) - (1,228) surplus/(deficit) Physical Revaluation 8,667 - 8,667 Surplus Other items in equity 4,909 - 4,909 Total Equity 12,348 - 12,348
The adoption of AASB 1058 and AASB 15 did not have an impact on the Statement of Changes in Equity for the financial year. Corryong Health Notes to the Financial Statements for the financial year ended 30 June 2020 Note 8.10: AASBs Issued that are not yet Effective
Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2020 reporting period. Department of Treasury and Finance assesses the impact of all these new standards and advises Corryong Health of their applicability and early adoption where applicable.
As at 30 June 2020, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Corryong Health has not and does not intend to adopt these standards early.
Applicable for annual reporting Impact on public sector entity Standard/Interpretation Summary periods beginning on financial statements
AASB 2018-7 Amendments to This Standard principally amends 1 January 2020 The standard is not expected to Australian Accounting Standards – AASB 101 Presentation of Financial have a significant impact on the Definition of Material Statements and AASB 108 public sector. Accounting Policies, Changes in Accounting Estimates and Errors . The amendments refine and clarify the definition of material in AASB 101 and its application by improving the wording and aligning the definition across AASB Standards and other publications. The amendments also include some supporting requirements in AASB 101 in the definition to give it more prominence and clarify the explanation accompanying the definition of material.
AASB 2020-1 Amendments to This Standard amends AASB 101 to 1 January 2022. However, ED 301 The standard is not expected to Australian Accounting Standards – clarify requirements for the has been issued with the intention to have a significant impact on the Classification of Liabilities as Current or presentation of liabilities in the defer application to 1 January 2023. public sector. Non-Current statement of financial position as current or non-current. A liability is classified as non-current if an entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period. The meaning of settlement of a liability is also clarified.
In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2019-20 reporting period (as listed below). In general, these amending standards include editorial and reference changes that are expected to have insignificant impacts on public sector reporting.
• AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business. • AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework. • AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform. • AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia. • AASB 2019-4 Amendments to Australian Accounting Standards – Disclosure in Special Purpose Financial Statements of Not-for-Profit Private Sector Entities on Compliance with Recognition and Measurement Requirements. • AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities.
• AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (Appendix C).