ANNUAL REPORT 2019-2020
To deliver the best health outcomes for the West Gippsland community Welcome
This Annual Report outlines West Gippsland Healthcare Group’s (WGHG) activities and performance from 1 July 2019 to 30 June 2020 and provides detailed financial statements about the organisation. WGHG is a public hospital established under the Health Services Act 1988 (Vic). The incorporation came into effect in May 1997 when services across the community came together under the one umbrella name, West Gippsland Healthcare Group. These include the Hospital, Community Health Services at Warragul and Rawson, Andrews House Residential Aged Care, Cooinda Lodge Residential Aged Care, and the Warragul Linen Service. During 2019-2020, WGHG was accountable, through the Board of Directors, to Jenny Mikakos MP, Minister for Health, and Minister for Ambulance Services. Cover image: Clinical nurses Claire Mullen and This report is also available online at: www.wghg. Eliza Attenborough (back) in the Hospital's com.au/publications. Printed copies are available Day Surgery Unit. by contacting our Public Relations Manager on Photography and Content Editor: Karyn O'Brien 03 5623 0600. Graphic Design and Print: Dragons Ink Acknowledgements: West Gippsland Healthcare Group acknowledges the funding support provided by the Victorian Government.
We acknowledge the traditional owners of the land on which our services are located, and we pay our respects to Elders past, present and future. Thank you to the staff, volunteers, patients and supporters of the West Gippsland Healthcare Group. ABN: 39 261 883 406
2 West Gippsland Healthcare Group Annual Report 2019-20 Contents
Welcome
Chair & Chief Executive Officer Our Community...... 27-30 Report...... 4-5 Donations & Fundraising
Our Healthcare Group...... 6-10 Our Performance...... 31-43 About Us Part A Strategic Priorities Our History Part B Performance Priorities Our Services Part C Activity and Funding
Corporate Governance...... 11-15 Summary of Financial Results...... 44-47 Ministers and Governance Financial WIES comparison Board of Directors Five year financial comparison Organisation Chart Reconciliation between the Net result from transactions Our Achievements...... 16-21 Financial Report Clinical Operations Report Medical Services Report Reporting Requirements...... 48-53
Allied and Community Health Report Attestations...... 55 Corporate Services Report People and Culture Report Financial Report...... 56-129
Financial Declaration...... 59 Our People...... 22-26 Staff Auditor General's Report...... 60-61 Occupational Health & Safety Disclosure Index...... 130 Service Awards
Photo: A neighbour displayed this message on a back fence near the hospital staff car park providing a boost to staff morale responding to COVID-19.
West Gippsland Healthcare Group Annual Report 2019-20 3 Report from the Chair and Chief Executive
Dan Weeks Christine Holland RN BBus(Acc) MHA MCareerDev GAICD FACHM GradCertCarCounsel TSTC(HomeEco) Chief Executive FAICD MAHRI PCDAA Officer Board Chair
On behalf of the Board and Activity Staff of West Gippsland The number of hospital inpatient admissions increased Healthcare Group (WGHG), it by 14% to just under 15,000 largely due to the is our pleasure to present the commencement of the Short Stay Unit in December and expansion of the Haemodialysis Unit. For the first time Report of Operations for the in many years, the number of patients treated in the year ending 30th June 2020. Emergency Department was less than the previous year, What a year it was, with many highlights and just as many due to the impact that COVID-19 had in deterring many challenges. We started the year with further closures presentations in the last quarter. At the start of March, the of our operating theatres in July and August, then in Emergency Department was 6% up on last year, showing September we were caught up in a major cyber-attack on the significant impact COVID-19 had on demand. The hospitals in Barwon Southwest and Gippsland Regions. number of births was 879 - slightly below last year’s Then, sadly the world was swept by COVID-19 which has numbers as we continued to keep numbers to safe levels. impacted everyone. The elective surgery program was significantly impacted by the early closures and then restrictions on surgery as part of The highlights included the opening of the Short Stay Unit the National and State response to COVID-19. and the third Operating Theatre, upgrade of a number of key pieces of infrastructure (including sterilisers, kitchen The community based programs and residential aged plant, nurse call bell and communications system and care services at Cooinda Lodge (including sub-acute care) replacement of the public lift) and a new driveway with and Andrews House continue to play significant roles in much needed additional car parking. We have been supporting the community. These services are integral fortunate to receive capital funding from the Victorian parts of West Gippsland Healthcare Group. Government and Department of Health & Human services (DHHS) which has enabled these important works and Financial Sustainability recognises the importance of WGHG to our growing The operating result for the year was a deficit of $1.75m community. which reflected the budget. It was always going to be a challenge to manage activity within budget, particularly with It was a year with significant disruption and distraction. The the expected increases in capacity during the year as the resilience of staff has been nothing short of outstanding, Short Stay Unit and third theatre approached completion. calmly addressing challenge after challenge and responding Warragul Linen Service, an important business unit of in a way which has maintained trust and confidence in our WGHG, was also significantly impacted by COVID-19, with service. The support of the community has been equally demand from key customers Monash Health and Alfred remarkable, working with us through the difficulties and Health well down. celebrating the successes.
4 West Gippsland Healthcare Group Annual Report 2019-20 Hospital admissions increased by 14% to just under 15,000 largely due to the commencement of the Short Stay Unit in December and expansion of the Haemodialysis Unit.
Strategies to achieve budget included staged opening of Thanks the Short Stay Unit, this also allowed demand levels to be West Gippsland Healthcare Group is defined by its staff, monitored throughout the year. While there were significant its leadership and its community. We use this opportunity expenses (almost $1 million in 2019-20) in responding to to again acknowledge the contribution of our highly skilled COVID-19, this was offset by a COVID-19 funding grant. staff, contractors and volunteers whose commitment and Strategic Plan professionalism is greatly appreciated. We also thank the The Board was very pleased to release the Strategic Plan Board and Executive for its calm and competent leadership 2019-2024, following input from key stakeholders. The during this turbulent year. At the end of June the Board Plan proudly identifies focus areas that go over and thanked and farewelled Board Director Beryl Raufer for above business as usual goals. It retains two Strategic her valued input over three years. The support of the Objectives from the previous plan that remain relevant and community was once again extraordinary. While the Charity are related to the future of WGHG and managing growth. Golf day was a huge success, the onset of COVID-19 The third objective is aimed at supporting and enhancing challenged our annual daffodil sales and annual appeal. our team, capability and culture. It recognises that our However the support of the community did not waiver and staff are our greatest asset and worthy of a strategic focus again our fundraising exceeded expectations. and investment. The final strategic objective focusses on In closing, it is also appropriate to acknowledge and thank person centred care and inclusiveness. It recognises the our many community partners, including our local members relationship between service delivery and our community, so of parliament, Department of Health and Human Services, that everyone feels safe and welcome using our services. health providers and Monash University. The year ahead It is very clear that COVID-19 will continue to create challenges to the delivery of healthcare and we continue to Christine Holland believe in our abilities to succeed in times of uncertainty. Board Chair We continue to be supported by DHHS and Government 22nd October, 2020 and are confident that the challenges faced are recognised. We have been funded for further infrastructure upgrades totalling almost $2million, including replacement of the fire Dan Weeks ring main, de-commissioning steam boilers and replacing Chief Executive Officer them with more efficient gas boilers and replacement of the 22nd October, 2020 Cooinda hot water system. These are important works to sustain operations while we continue to work constructively towards a longer term solution.
West Gippsland Healthcare Group Annual Report 2019-20 5 Photo: Clinical nurse Nikki Eddy (right) demonstrates a COVID-19 swab test with WGHG’s Tarryn Gardiner
6 West Gippsland Healthcare Group Annual Report 2019-20 About Us
West Gippsland Healthcare Group (WGHG) is a Our Vision: customer-focused public health organisation To deliver the best health outcomes for the providing acute care, residential care and West Gippsland community. community health services to more than 53,000 people in the rural, urban residential, Our Mission: agricultural and industrial areas located To improve the health and wellbeing of within the Baw Baw Shire and beyond. our community by enabling access to high WGHG’s main hospital campus is in Warragul with quality, contemporary, person-centred allied and community health-based hubs in Warragul, healthcare. Rawson and Trafalgar and residential aged care facilities in Warragul and Trafalgar. It also operates the Our Values: Warragul Linen Service. Our behaviours and decision making centres Employing approximately 1,400 staff, WGHG is the around Our Values of: largest employer in West Gippsland. c Respect – we treat others as we would like During 2019, WGHG re-defined its Organisational to be treated Values using results from team-led behaviour development sessions with WGHG staff, lead leaders, c Leadership – we role model the desired executive and Board. behaviours and speak out when this is not demonstrated
c Accountability – we take personal responsibility for our actions and results
c Collaboration – we work effectively with our consumers, staff and community
c Improvement – we look for opportunities to improve our services and outcomes
West Gippsland Healthcare Group Annual Report 2019-20 7 Our History
1888 The community established a Hospital on land 2007 Community Health and Community Mental Health donated by Mary Sargeant to service the area project completed. between Melbourne and Sale. 2008 Community Rehabilitation Centre redevelopment 1895 Warragul District Hospital completed. underneath Cooinda Lodge completed. Centenary of opening of first Warragul District Hospital celebrated 1908 Warragul District Hospital officially opened. Centenary history book ‘Of the People...For the 1924 Name change to West Gippsland Hospital (WGH). People’ and Centenary quilt launched. 1936 The original wooden Hospital building redeveloped. 2009 WGHG awarded Premier’s Award for Regional Health 1939 The foundation stone of the new brick Hospital laid Service of the Year. by Mr Dunstan. 2010 WGH Drouin Auxiliary 50th anniversary celebrated. 1940 The new Hospital opened by Sir Winston Duggan. Permanent home purchased for Trafalgar Community Health Services. 1970 Eastern extensions to the Hospital opened. The Hospital expanded to 144 beds. Extensions to Drouin Opportunity Shop completed. 1978 Stage 1 of Cooinda Lodge nursing home built, 2011 Feasibility study for redevelopment of West accommodating 28 residents. Gippsland Hospital site commenced. 1986 Stage 2 of Cooinda Lodge added, accommodating 56 2012 Building extension works commenced to the residents. emergency department. The Warragul Linen Service moved into purpose-built New physicians consulting rooms, education premises in Ley Street. facilities, teleconferencing facilities and a new home for the District Nursing Service completed. 1996 A Community Services Centre was established in Study identifies Lardners Track in Drouin East as Warragul. preferred site for a new Hospital. Stage 1 Redevelopment of Hospital completed. 2013 Emergency department redevelopment completed 1997 The various health services provided across the and officially opened by The Hon David Davis MP community were brought together under the umbrella 17th May. name of West Gippsland Healthcare Group (WGHG). A record breaking 1020 babies born at WGH. Rawson Community Health Centre incorporated into WGHG. 2014 The first self-funded research program announced, with $100,000 made available to Andrews House opened, accommodating 30 support clinical staff to undertake research residents. programs. 1998 Baw Baw Health and Community Care Centre opened 2015 Relocated High Dependency Unit within in Drouin, a joint venture with the Baw Baw Shire. Medical Unit to expand the number of Stage 2 Redevelopment of the Hospital officially postnatal and medical unit beds. opened. 2016 Constructed five units in Sargeant Extensions to Andrews House in Trafalgar completed, 2005 Street Warragul, to provide on- accommodating 50 residents. site accommodation for visiting Queen Street Community Services building clinicians. Completed $5.8m redeveloped. Energy Performance Contract Extensions to Warragul Linen Service completed to (EPC) asset refresh and major accommodate new continuous batch washing system. refurbishment of Cooinda 2006 Community Rehabilitation Centre relocation project Lodge. commenced. Stage 3 Redevelopment of the Hospital, incorporating the High Dependency and Midwifery Units completed.
8 West Gippsland Healthcare Group Annual Report 2019-20 2017 WGHG awarded Excellence in Women’s Health award 2019 Completed construction of five additional units for its Positive Pregnancy Program. in Sargeant Street, Warragul to provide on-site Completed masterplan and feasibility studies to accommodation for visiting clinicians. Constructed a develop detailed proposals for a new hospital on the new eight bed Short Stay Unit next to the Emergency current site or a new hospital on the greenfields site Department, a new roadway and car parking at the at Lardners Track in Drouin East. front of the hospital and third Operating Theatre. Secured funding to build a Short Stay Unit in the 2020 Opened the new Short Stay Unit and the new third Emergency Department and a third Operating Operating Theatre. Replaced the hospital public lift, Theatre. two new sterilisers in Theatre and Reverse Osmosis water system, kitchen plant, and new nurse call bell 2018 Monash University expanded their site in Sargeant and communications system. Street adding a demountable building.
Photo: The Short Stay Unit opened to patients in December 2019. Pictured at a presentation to mark its completion is MLC for Eastern Victoria Harriet Shing, WGHG CEO Dan Weeks, Aboriginal Hospital Liaison Officer Troy Jennings and Board Chair Christine Holland. Photo courtesy of Warragul & Drouin Gazette.
West Gippsland Healthcare Group Annual Report 2019-20 9 Our Services as at 30 June 2020
Aged Care Continuing & Complex Care Neonatology Aged Care Assessment Geriatric Evaluation & Obstetrics Andrews House Aged Care Facility Management (GEM) Oncology Cooinda Lodge Aged Care Facility Transitional Care Program- Ophthalmology Subacute Care Home & Community Care Services Orthopaedic Surgery Hospital Admission Risk Program Respite Care Paediatric Medicine Post-Acute Care Paediatric Surgery Allied & Community Health Residential In Reach Pain Management Services Palliative Care (inpatients) Aboriginal Hospital Liaison Officer Contract Services Pre-Admission Children & Family Services Breast Screen Renal Medicine Counselling & Case Management Endoscopy Urology & Urodynamics Child Safe & Family Violence Pathology Project Manager Pharmacy Cognitive Dementia & Memory Radiology Support Services Service (CDAMS) Administration Community Allied Health Team (CAHT) Business Services Community Health Nurse Project Role Home Nursing Service Casemix Continence Service District Nursing Service Central Sterile Supply Department Diabetes Nurse Education - Hospital in the Home (HITH) Consumer Engagement & First Call – Central Intake Service - Palliative Care Nursing Volunteering Health Promotion - McGrath Breast Care Nurse Contract Management Rawson Community Health Centre - Infusion Clinic Engineering Services Environmental Services Allied & Community Hospital (acute) Finance Rehabilitation Service Anaesthesia Food Services Susan Lloyd Leanne Williams Farhat Firdous Cardiac Rehabilitation Service Breast Feeding Support Health Information Services Dietetics Breast Surgery Human Resources Occupational Therapy Cardiology Infection Control Physiotherapy Day Surgery Information, Communications & Technology Social Work Dental Surgery Learning & Development Speech Pathology Diabetes Education Library Ear Nose & Throat Surgery Pay Office Business Units Emergency Medicine Performance Improvement Unit Sarah Lukies Christine Holland Adam Selent Cafeteria Gastroenterology Consulting Suites Public Relations, Fundraising & General Medicine Donations Salary Packaging General Surgery Security & Car Parking Warragul Linen Service Gynaecology Supply & Purchasing Haemodialysis Work Health & Wellbeing High Dependency Care Joshua Chikuse Jo-Anne Moorfoot Beryl Raufer Sara Brentnall Midwifery
10 West Gippsland Healthcare Group Annual Report 2019-20 PR WGHCG zoom full page advert.indd 1 28-May-20 8:35:50 AM Corporate Governance
Thank you
From April 2020, the WGHG Board A poster was created to send thank embraced a new way of meeting you messages from the Board to via Zoom video to observe physical staff for their outstanding job working distancing while still performing their together to provide the best possible important governance role. care to patients during the pandemic, having already managed a major The Board also found an innovative cyber attack and theatre closures way to use Zoom to express their during 2019. appreciation to all staff across the health service for the way We acknowledge and applaud all they responded to the incredible WGHG staff. challenges of COVID-19.
Susan Lloyd Leanne Williams Farhat Firdous
Sarah Lukies Christine Holland Adam Selent
Joshua Chikuse Jo-Anne Moorfoot Beryl Raufer Sara Brentnall
PR WGHCG zoom full page advert.inddWest 1Gippsland Healthcare Group Annual Report 2019-20 11 28-May-20 8:35:50 AM Corporate Governance
Photo: WGHG Board Directors launch the 2019-2024 Strategic Plan
Ministers and Governance Board Sub-Commitees The Board of Directors of WGHG is appointed by the The Board Directors met ten times throughout the year and Governor-In-Council on the recommendation of the Minister were active members of various Board Sub-Committees set for Health and Ambulance Services in accordance with the up to assist in monitoring the Group’s various operations. Health Services Act 1988. • Audit & Finance Committee: Leanne Williams (Chair) Joshua Chikuse During 2019-2020, WGHG was accountable through its Farhat Firdous Board of Directors to Jenny Mikakos MP Minister for Health, Sarah Lukies Minister for Ambulance Services.
• Quality & Safety Committee: Jo-Anne Moorfoot (Chair) Board functions Sara Brentnall The functions of the Board of Directors are to: Susan Lloyd • oversee and manage the Group Adam Selent • ensure services provided by the Group comply with the Beryl Raufer requirements of the Act and aims of the Group
• Board Performance & Remuneration Committee: Governance by the Board is achieved through: Christine Holland (Chair) • strategic planning Sarah Lukies • effective management of the Chief Executive Officer Jo-Anne Moorfoot • funding of service agreements Beryl Raufer • local policy setting • regular reviews of the Group’s by-laws and strategic plans The Board establishes Working Groups for appropriate projects on an ‘as needs’ basis.
12 West Gippsland Healthcare Group Annual Report 2019-20 Board of Directors: July 2019 - June 2020
Christine Holland Jo-Anne Moorfoot MCareerDev BAppSc GradDipBA GradCertCarCounsel GAICD CertProjMan TSTC(HomeEco) Executive Director FAICD MAHRI PCDAA (Healthcare HR and Career Governance) Consultant Position: Position: Board Chair Deputy Chair
Commenced as a Board Director July 2014 Commenced as Board Director July 2017 Member of the Board Performance & Remuneration Member of the Quality & Safety (Chair) and Board Committee (Chair) Performance & Remuneration Committee Board meetings attended (100%) Board meetings attended (100%)
Susan Lloyd Beryl Raufer BAppSci, GradDipEd, GCCM BEd GAICD MOrgLeadership, CertProfMediation FAICD, VIT ExecDipCoaching Corporate Leadership Senior Executive Consultant, Disability / Not for Governance Adviser Profit Sector & Secondary Teacher Position: Position: Board Director Board Director
Commenced as Board Director July 2017 Commenced as a Board member July 2018 Member of the Quality & Safety Committee and Board Member of the Quality & Safety Committee Performance & Remuneration Committee Board meetings attended (70%) Board meetings attended (100%)
West Gippsland Healthcare Group Annual Report 2019-20 13 Board of Directors: July 2019 - June 2020
Leanne Williams Sarah Lukies BBus(Com) GradDipCA MBA LLB BBUS GAICD Senior Legal & Chief Executive Officer Governance Counsel West Gippsland Libraries
Position: Board Director Position: Board Director Commenced as a Board member July 2018 Commenced as a Board member July 2018 Member of the Audit & Finance Committee (Chair) Member of the Board Performance Committee & Board meetings attended (100%) Remuneration; Audit & Finance Committee Board meetings attended (100%)
Sara Brentnall Farhat Firdous BAppSc(Physio) PGDip BA (Soc) MA (Soc) MA (Musc) PGDip (Manip) (Dev Studies) PGDip MScMed (Pain Managt) (Counselling) MAICD GAICD Divisional Manager, Multicultural Health Independence Strategic Program & Ambulatory Engagement Services, Austin Health Coordinator Position: Board Director Position: Board Director Commenced as Board Director May 2019 Commenced as Board Director July 2019 Member of the Quality & Safety Committee Member of the Audit & Finance Committee Board meetings attended (100%) Board meetings attended (100%)
Adam Selent Joshua Chikuse BOptom PGCertOc Ther AGIA, ACIS, BEnv, Optometrist MAppSc Environmental Management Sector Position: Board Director Position: Board Director Commenced as Board Director July 2019 Commenced as Board Director July 2019 Member of the Quality & Safety Committee Member of the Audit & Finance Committee Board meetings attended (100%) Board meetings attended (100%)
14 West Gippsland Healthcare Group Annual Report 2019-20 Organisational Chart West Gippsland Healthcare Group
BOARD OF DIRECTORS
CHIEF EXECUTIVE OFFICER Public Rela�ons Fundraising & Dona�ons
Chief Medical Director Clinical Director Corporate Director Allied & Director People Officer Opera�ons Services Community Health & Culture
Performance Improvement Unit Infec�on Control Consultant Aged Care (AH & CL)
Con�nuing & Complex Care HARP/PAC/RIR/GEM & TCP Opera�ons Manager Opera�ons Manager General Manager General Manager Manager Access & Demand Women, Children Finance &Corporate Facili�es Warragul Linen Allied Health Surgical Services Services Management Community Rehabilita�on Service
Occupa�onal Therapy Physiotherapy Hospital Coordinators Speech Pathology Diete�cs Social Worker Human Resource Clinical Leads Medical Unit Surgical & Finance Environmental Services Recruitment Produc�on Paediatric Unit Primary Community Health Employee Rela�ons Senior Medical Emergency Department Business Services Food Services CDAMS (Memory Clinic) Reward & WLS Staff Short Stay Unit Opera�ng Rooms Con�nence Recogni�on Administra�on Day Surgery Contracts Engineering Services Diabetes Educa�on Registrars District Nursing Services CSSD Community Health Nurse Work Health & Transport Annual 2019-20 Report Hospital in the Home Salary Packaging Informa�on & Young Mum Group Wellbeing HMO’s Pallia�ve care Maternity Unit Communica�on Counselling Services Quality, OH&S Breast Care Support Special Care Nursery Supply & Purchasing Technology First Call (Central Intake) Payroll and CI Interns HACC Services Health Promo�on Team ESAC Security Aboriginal Hospital Liaison Consumer & Maintenance & Medico Legal Haemodialysis Preadmission HIS & Recep�on Car Parking Volunteer Capital Projects Community Allied Health Service Engagement Casemix (Coding) Oncology Consul�ng Suites Wellness & Reablement Consultant Customer Services Occupa�onal Therapy Learning & Diabetes Educa�on Physiotherapy Development Speech Pathology Nursing & Midwifery Diete�cs Medical Educators Counselling Podiatry Library Child Safe & Family Violence Project Contracted Services: Manager Pathology Radiology Rawson Community Pharmacy Health Centre Endoscopy 15 Photo: CEO Dan Weeks interviewed in the new third Theatre by WIN News and 9 News Gippsland.
16 West Gippsland Healthcare Group Annual Report 2019-20 Our Achievements
DIRECTOR OF CLINICAL OPERATIONS
Report by Report by Daniel Scholtes Bernie McKenna BN, GDipPeriopNurs, BN, DipManagt, GCertAdvNursPract, CertHealthSysManagt GCertHealthServManagt
The Director of Clinical Operations has an extensive role responsible for all clinical units in the Hospital, two aged care residential facilities and same day services such as dialysis, day surgery, oncology and community-based nursing services. Following the departure of Kathy Kinrade in December 2019, the role has been shared in an acting capacity by Daniel Scholtes and Bernie McKenna.
Key achievements during 2019-20 include:
• Developing a model of care to operate a new Short Stay • Re-assessment against the National Safety and Quality Unit attached to the Emergency Department. Health Service Standards. All eight standards were met without recommendations. The next scheduled • Successful participation and achievement in VMIA assessment is in August 2022. ‘Incentivising Better Patient Safety’. A program focussing on three key areas: Multidisciplinary Maternity Emergency • Expansion of the Haemodialysis Unit capacity. The unit Training, Foetal Surveillance and Neonatal Resuscitation. now operates six days a week with two sessions daily. The Obstetric and Maternity Team reached above the 80% target in all three areas.
• Innovative nursing workforce recruitment and retention strategies introduced and maintained across the organisation including Overseas Trained Nurse Recruitment, Aged Care Enrolled Nurse Graduate Program, and support of Registered Nurse Return to Practice program.
West Gippsland Healthcare Group Annual Report 2019-20 17 Our Achievements
CHIEF MEDICAL OFFICER
Key achievements during 2019-20 include:
• Chairing the Pandemic Management Committee, re-
Report by convened to address the challenges associated with DrReport Gary by COVID-19. This includes co-ordinating the organisation’s CampainDr Peter Trye response while working within a regional COVID plan. MBBS, FACEM, MBChB, DipObs, AFRACMA, • Working with Monash Rural Clinical School to establish a MPH, MBA, FAFPHM, GradCertMgt simulation and training facility for staff and students. FRACMA, FRACGP,
GAICD • Involving senior medical staff in the case-mix auditing process as an integrated function more closely linked to patient care.
• Enhanced junior medical education supplemented with online forums that are co-ordinated with trainees at other The Chief Medical Officer provides oversight of the junior Gippsland Hospitals. and senior medical staff and assists in fostering optimal working relationships between medical staff and the • Achieved re-accreditation for: Intern and Hospital Executive in achieving the common goal of high quality Medical Officer (HMO) Training; General Surgical Training; patient care. The role focusses on safety and quality Emergency Medicine Training. processes and outcomes, and provides high level advice on medical matters.
18 West Gippsland Healthcare Group Annual Report 2019-20 DIRECTOR OF ALLIED AND COMMUNITY HEALTH
Report by DrReport Gary by CampainAudra Fenton MBBS, FACEM, AFRACMA,RN, GradDip MN, GradCertMgtGrad Dip Bus Man., CMHN, MNurs (Mental health), ACMHN, ACHSM, MAICD
The Director of Allied and Community Health has a pivotal role in the delivery of community and hospital-based services for West Gippsland, advising on issues related to primary, allied and community health services. The role focusses on strategic alliances and partnerships, and community-based networks both within Baw Baw Shire and on a regional and state-wide basis.
Key achievements during 2019-20 include:
• Successful in embedding the Strengthening Hospitals • Recognition as a Health Literacy Champion to assist in the Response to Family Violence in practice. development of the new regional training video.
• Successful Child Wise reaccreditation. WGHG remains the • Developing screening tools to improve Paediatric only health service in Australia to achieve this recognition. pathways into Allied Health services.
• Exceeding state average in client feedback (Victorian Health Experience Survey for Community Health) with an overall 98% satisfaction rate.
West Gippsland Healthcare Group Annual Report 2019-20 19 Our Achievements
DIRECTOR OF CORPORATE SERVICES • Replacement of outdated communication system with a contemporary and integrated, paging, duress, nurse call and messaging system. • Replacement of the public lift cage, improving lift reliability. • Replacement of two sterilisers in theatre, including a Report by new Reverse Osmosis water system that will ensure Justin Walsh compliance under changes to sterilisation standards from December 2021. CPA BBus (Acct) BBus (Bank&Fin) • Upgrade of Kitchen Heating Ventilation and Air conditioning (HVAC) system to more energy efficient plant. • Upgraded security system at Community Health Building (Gladstone St) and installed additional swipe card access The Director of Corporate Services oversees the business, points to external entrances of the main hospital site as corporate and facilities operations of the Group that support the an outcome of the annual security site risk assessment. delivery of clinical services. The position also provides financial • Energy savings equivalent to 168 tonnes CO2-e and procurement leadership as the Chief Financial Officer (CFO) greenhouse gas emission. Year 4 of the seven year Energy and Chief Procurement Officer (CPO) for the Group. Performance Contract energy targets met. Key achievements during 2019-20 include: • Construction and commissioning of third Operating Theatre and Short Stay Unit under Rural Health Infrastructure Fund (RHIF).
Photo: A thermal imaging scanner was installed at the main hospital entry doors to scan the body temperature of all visitors and staff in response to COVID-19.
20 West Gippsland Healthcare Group Annual Report 2019-20 DIRECTOR PEOPLE & CULTURE
Report by Alan Hollensen
BEng(Hons) DipPracMgt
The Director of People and Culture aims to lead the organisation in the areas of staff and leadership growth, organisational culture development, employee and consumer engagement, diversity and inclusion. The role also provides expertise and support in the areas of learning and development, performance management, employee relations, policy development, human resources and workplace health and wellbeing.
Key achievements during 2019-20 include:
• Significant improvement in staff satisfaction survey • Further developed organisational leadership capability and results including key parameters measuring leadership accountability through skills development, coaching and and a learning and development culture. integration of management tools into reporting systems.
• Re-developed and implemented the WGHG orientation • Developed an organisation-wide Diversity Plan and an program as an online package. organisation-wide Disability Action Plan, with consultation of consumers, the community, key stakeholder groups (including LGBTI community and people living with • Integrated Consumer Engagement into WGHG policies and disability), carers and the workforce. processes to facilitate an environment where Consumer Engagement is part of everyday operation.
West Gippsland Healthcare Group Annual Report 2019-20 21 Our People
Photo: During COVID-19 restrictions, staff across WGHG joined a state-wide community campaign to encourage people to stay home to reduce the spread of COVID-19.
22 West Gippsland Healthcare Group Annual Report 2019-20 Our People
In 2019-2020, WGHG employed a total of 1,394 people (773 full time equivalent) across the organisation. The biggest category of employees is Nursing Services.
FULL TIME EQUIVALENT STAFF June Current Month June Year to Date Labour Category 2019 2020 2019 2020 Administration & Clerical 106.36 107.61 105.90 108.71 Ancillary Support (Allied Health) 59.57 58.68 60.32 59.16 Hospital Medical Officers 26.68 32.10 32.13 29.79 Hotel & Allied Services 204.55 197.71 206.33 197.37 Medical Officers 5.07 5.58 4.95 5.27 Medical Support 24.28 25.10 23.70 26.17 Nursing Services 329.65 338.97 329.19 331.48 Sessional Clinicians 16.23 16.86 13.86 15.98 Total 772.39 782.61 776.38 773.93 * FTE stands for full-time equivalent position. All employees of WGHG are correctly classified in the workforce data collections. Employment and conduct principles WGHG is committed to upholding the principles of merit and Any complaints, allegations or incidents involving equity in all aspects of recruitment and employment. discrimination, vilification, bullying or harassment are taken seriously and addressed. All staff are provided with Policies and practices are in place to ensure all employment education and training on their rights and responsibilities related decisions, including recruitment, promotion, training and are required to abide by the WGHG Code of Conduct and retention, are based on merit. and all WGHG policies under their employment agreement.
Photo: A visit from the Grinch did not dampen the spirit of staff during the annual WGHG Best Dressed Christmas Department competition. Each December, staff dress up and decorate their work areas. A judging team, comprising executive and WGHG Board Directors, visit each area to view the creative efforts and issue prizes. A Christmas luncheon and dinner is also held in the cafeteria to thank staff for their work throughout the year.
West Gippsland Healthcare Group Annual Report 2019-20 23 Our People
Occupational Health & Safety (OH&S) Supporting early return to work West Gippsland Healthcare Group aims to provide a safe and Our focus on early return to work has seen a significant healthy environment for patients, residents, staff, contractors reduction in our claims costs. While there were a comparative and visitors. number of claims to the previous year, the focus and training We aim to manage all hazards and control any risks so far as over the last 12 months has seen lost time days reduce to an is reasonably practicable. In 2019-20 the focus continued to average of 36 days per claim in 2019-20, down from 54 days be on the prevention of occupational violence and aggression in 2018-19. This reduction in days lost has seen the average (OVA) and the prevention of musculoskeletal injuries due to paid claim cost reduce to approximately $10,500 per claim, hazardous manual handling and slips, trips and falls. this is a 66% reduction over two years from the 2017-18 financial year. Staff OVA Training Employment Assistance Program (EAP) 780 staff have now undertaken full-day OVA training which recommenced in late June after a three month hiatus due Staff are utilising the WGHG Employee Assistance Program to social distancing restrictions of COVID-19. The new OVA (EAP) which provides employees, volunteers and their training has involved no physical contact and staff maintaining immediate families with access to free external counselling distancing at all times. and support with experienced and qualified professionals. Of the staff using the EAP program 50% were for work- related issues, 44% non-work related and the remaining 6% COVID-19 related.
OH&S Statistics 2017-18 2018-19 2019-20 Number of reported hazards/incidents for the year per 100 full-time 24.8 28.2 28.9 equivalent staff members Number of lost time standard claims for the year per 100 full-time 0.79 0.42 0.49 equivalent staff members Average cost per claim for the year (including payments to date and an $108,210 $31,040 $42,719 estimate of outstanding claims costs as advised by WorkSafe) 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 violence cause per 0 1,000,000 hours worked Number of occupational violence incidents reported 89
Number of occupational violence incidents reported per 100 FTE 12.6
Percentage of occupational violence incidents resulting in a staff injury, illness or condition 13%
Definitions: Occupational violence - any incident where an employee is Accepted WorkCover claims – Accepted WorkCover claims that abused, threatened or assaulted in circumstances arising out of, or were lodged in 2018-19. in the course of their employment. Lost time – is defined as greater than one day. Incident – an event or circumstance that could have resulted in, Injury, illness or condition – This includes all reported harm as a or did result in, harm to an employee. Incidents of all severity rating result of the incident, regardless of whether the employee required must be included. Code Grey reporting is not included, however, time off work or submitted a claim. if an incident occurs during the course of a planned or unplanned Code Grey, the incident must be included.
24 West Gippsland Healthcare Group Annual Report 2019-20 Service Awards
At the Annual General meeting the Board recognises staff who have achieved significant employment milestones. At the 2019 AGM, the following awards were acknowledged: 40 Years 25 Years 20 Years 15 Years Bernadette Notman Wendy Alger Susan Crosby Anne Balfour, Heather Bell Jacqueline Farmer Edward Bennett 35 Years Ian Campbell Kaye Howells Maryann Bills Meredith Henry Mary Dinsdale Suzanne James Elaine Bristow Maxine Penington Leanne Duncan Lucy Lewis Kerryn Cole Gwen Gibb Tania McGarrity Sharon Dessent 30 Years Fiona Griffin Alyson Mills Angela Evison Susan Jinks Michelle O’Dwyer Suzanne Haymes Gai Duncan Sharon Mildren Robyn Paull John Hibbert Carolyn Forrest Ulla Schmidt Jean Ryan Mary Keeble Patricia Harris Hariati Staten Susan Smith Christine McBain, Margaret Murphy Michelle Wood Carol Stapenell Sharon McDonald Kerri Rickard Leeta Zurrer Robert Stefanovski Elizabeth Pike Margaret Scott Shirlene Browne Julie Pollock Colleen Butterworth Keira Rees Pauline Bishop Ursula Stewart Valerie York
Pictured: WGHG Staff celebrate long service awards at the 2019 AGM Back from left: Alyson Mills (20 yrs), Kerri Nicholls (volunteer 10 yrs), Mary Dinsdale (25 yrs), Susan Crosby (20 yrs), Rob Stefanovski (20 yrs), Sharon Mildren (25 yrs), Aija Owen (volunteer 10 yrs), Bernadette Notman (40 yrs), Front from left: Margaret Scott (30 yrs), Kaye Howells (20 yrs), Fiona Griffin (25 yrs), Susan Smith (20 yrs), Gai Duncan (30 yrs), Edward Bennett (15 yrs), Heather Bell (25 yrs), Glenys Brennan (volunteer 10 yrs) and Mick Brennan (volunteer 10 yrs).
West Gippsland Healthcare Group Annual Report 2019-20 25 Service Awards
Life Governor Awards Each year, the Board of Directors consider people who are worthy recipients for a Life Governorship Award. The criterion is stringent and reflects first and foremost meritorious service, with a secondary length of service requirement. At the 2019 AGM, Life Governorships were awarded to outgoing Board Director Peter Kingwill, General Surgeon Mr Phil Harris (absent) and midwife Robyn Barr.
Pictured from left: Peter Kingwill, Board Chair Christine Holland and Robyn Barr
Volunteer Recognition of Service Awards Volunteers and Auxiliary members with 10 years or more of volunteer service to WGHG are recognised under the award category of Volunteer Recognition of Service Award. Seven volunteers received awards including Glenys Brennan, Mick Brennan, Marlene Booth, Helen Cocksedge, Kerri Nicholl, Aija Owen and Maureen Vance.
Pictured: WGHG Volunteers Kerri Nicholl, Aija Owen, Glennys and Mick Brennan.
26 West Gippsland Healthcare Group Annual Report 2019-20 Our Generous Community
Donations: July 1 $5,000 - $19,999 Under $1,000 2019 - June 30 2020 Donor requested to be anonymous We are grateful for all donations WGHG is most grateful for the generous Estate of William J Payne both large and small. During 2019- support from the community. During Estate of Ethel J McDonald 20, WGHG received 238 donations under $1,000. When combined, these 2019-20, we received an impressive Ian Watts donations make a big impact and assist $1,171,246 through donations and Lindy Watson fundraising activities. us to purchase medical equipment and Lions Club of Yarragon patient comfort items. We acknowledge the support received Smith McCarthy Wilson through Trusts and Bequests, in Rotary Club of Drouin In Memoriam particular the ongoing generous support of The Andrews Foundation, Pethard W & R Fowler donations Tarax Charitable Trust, William Joseph We receive many in memoriam Payne Trust, Charles Haworth Trust $1,000 – $4,999 donations following the death Estate, as well as estates of Rhonda A & G Kaiser of a loved one, for which we Stearman, Ethel McDonald, Betty Alexander Jarvis are most appreciative. Heywood, Geoffrey Bruce Russell and many others who choose to donate to A Jones us privately. B & E Sherriff Carlo Bragagnolo Over $100,000 C Wilkins Bequest donor requested to be Club 88 anonymous C & L Vaughan Drouin Auxiliary Opportunity Shop DE & JL Fortune Estate of the late Rhonda Stearman Erica & District Progress Association The Andrews Foundation Estate of Edna M Heywood Helen Winter $50,000 - $99,999 Hallora Hall Committee Donor requested to be anonymous Jenny Britt Trafalgar & District Community Opp Neerim District Lions Club Shop Neil and Rosalie Saunders M & J Kennedy How to donate $20,000 - $49,999 Peter Lubberink Donations can be made: Bendigo Bank & Warragul Country Club Pethard Tarax Charitable Trust Charity Golf Day • by phone: 03 5623 0600 Philip Murphy Charles Haworth Trust Estate Mon-Friday 9am-5pm using credit R Missen card Drouin & District Community Bank cluster Rotary Club of Warragul Gippsland Sporting and Classic Car • on line at www.wghg.com.au, Register Rotary Club of Drouin securely using a credit card or PayPal Lions Club of Drouin Suzanne Midgley Lions Club of Warragul Trafalgar Lions Club • by cheque made payable to: West Gippsland Healthcare Group Pharaoh's Secret Angels Vince Nativo Willow Grove and District Lions Club and mailed to 41 Landsborough Southern Cross Austereo Street, Warragul Trafalgar & District Community Bank • in person to the Public Relations cluster Manager at the main hospital Trafalgar & District Community Opp Shop campus Treasure Your Chest - Girls Day Out
West Gippsland Healthcare Group Annual Report 2019-20 27 Service Awards
Our Generous Community
28 West Gippsland Healthcare Group Annual Report 2019-20 Our Generous Community
West Gippsland Healthcare Group Annual Report 2019-20 29 Our Generous Community
Timber and Hardware and the Hilltop Our Dedicated Volunteers Fundraising Milkbar, as well as our regular sellers WGHG gratefully acknowledges the Town and Country Gallery, Bunyip IGA, and events dedicated volunteers who give their Grange Café, Down to Earth Garden time freely to assist our programs Soft approach for Annual Centre, Trafalgar Opp Shop and Drouin and services. COVID-19 restrictions Equipment Appeal Auxiliary Opp Shop. halted many volunteer programs from Due to the financial impact of COVID-19 Charity Golfers March 2020 including the annual on many local people, the WGHG Board In its sixth year, the annual Charity National Volunteers thank you luncheon. made a decision not to run a broad Golf Day and community raffle raised Volunteers were personally written to by public equipment appeal during May $35,000 thanks to a partnership the Board Chair and sent a Certificate of and June 2020. Instead, regular donors between the Warragul Country Club Appreciation and a recognition pin. We were personally written to and the and Bendigo Bank Community Bank thank those volunteers who continue to response was overwhelmingly positive branches of Drouin, Trafalgar, Bunyip, support our heath service working from with $91,000 in donations received to Neerim South and the Warragul branch. their homes and supporting us in so purchase medical equipment. We thank $28,000 was donated to our Hospital many ways. the service clubs, businesses, groups and $7,000 to support the Warragul and individuals who supported us. We are grateful to the following and District Specialist School. volunteer groups for their continued Daffodil Bulb Fundraiser Ladies Days to support people support: Our annual daffodil bulb fundraiser living with cancer • Andrews House volunteers faced a considerable challenge when • Community Rehabilitation Centre We are honoured to have the support COVID-19 restrictions forced the Woodworkers cancellation of Farmworld and the of two active women’s fundraising groups – the Girl’s Day Out group • Consumer Representatives (including temporary closure of regular retailers Community Voices) including our Opportunity Shops. and Pharaoh’s Secret Angels who • Cooinda Lodge volunteers Thanks to many small essential local held major fundraising events. Their businesses who stepped in to sell donations are supporting the Cancer • Drouin Auxiliary Opportunity Shop bulbs, we managed to raise $21,000 Patient Coordinator program and the • Hospital Concierge (wayfinding) team purchase of medical equipment. exceeding expectations. • Mobile Book Trolley Service The Blyth Bros farm at Ellinbank Social Media connects • Palliative Care Service volunteers donates bulbs for the fundraiser each supporters • Rawson Auxiliary year and all money from sales goes The West Gippsland Hospital Supporters • Trafalgar & District Community to purchase medical equipment for Facebook page continues to provide Opportunity Shop Allied and Community Health programs. an additional platform to publically Other volunteer programs include Thank you to new sellers, The Coffee recognise, share and thank supporters, support to hospital wards, Pod, Trafalgar True Value Hardware, partnerships and promote online administration and more. Baw Baw Food Hub, Drouin Home donation options.
Pictured: Drouin Auxiliary Opportunity Shop donated $300,000 to WGHG to purchase medical equipment. Back from left: WGHG Chair Christine Holland, WGHG CEO Dan Weeks, Drouin Auxiliary Opportunity Shop volunteers Carol Mallows, Cathy Digby, Jill Hensen, Donna Kent. Front from left: Joy Baxter, Kerry Nicholls, Mary Aitken and Vonnie Roberts. WGHG holds an annual luncheon to thank our volunteers.
30 West Gippsland Healthcare Group Annual Report 2019-20 Our Performance
Photo: Allied & Community Health (CRC) Receptionist Bev Hogan displays a vase of daffodils grown from the annual bulb fundraiser.
West Gippsland Healthcare Group Annual Report 2019-20 31 Our Performance Part A: Strategic priorities
Better Health
GOALS STRATEGIES
A system geared to prevention as much as treatment Reduce State-wide Risks Everyone understands their own health and risks Build Healthy Neighbourhoods Illness is detected and managed early Help people to stay healthy Healthy neighbourhoods and communities encourage healthy Target health gaps lifestyles
HEALTH SERVICE DELIVERABLES OUTCOMES
Develop a program to support patients and clients who experience sexual health and intimacy issues following Achieved. Sexual intimacy education has been delivered a health issue, condition or diagnosis. Clients will be to Allied Health staff. This allows the team to incorporate assessed by Allied Health staff in the acute units and a care sexual health as part of any client assessment and to assist plan will be developed to meet the client’s specific goals clients in meeting their own personal and health goals. and needs.
Achieved. The Municipal Health Plan has been implemented in conjunction with Baw Baw Shire Council Implement the Integrated Municipal Health Plan by and the Primary Care Partnership. One of the key focus supporting local work places, early childhood services and areas for West Gippsland Healthcare Group has been health schools, to put into effect the Government achievement literacy - the ability to obtain, read, understand, and use program. healthcare information in order to make appropriate health decisions and care choices.
32 West Gippsland Healthcare Group Annual Report 2019-20 Part A: Strategic priorities
Better Access
GOALS STRATEGIES
Care is always being there when people need it Plan and invest Better access to care in the home and community Unlock innovation People are connected to the full range of care and support Provide easier access they need Ensure fair access Equal access to care
HEALTH SERVICE DELIVERABLES OUTCOMES
Explore alternate models of homecare within current budget Achieved. Telehealth options have been implemented, and eligibility guidelines with the aim to increase outreach alongside face-to-face social distanced appointments as home services. part of COVID 19 response.
Strengthen and streamline our Central Intake risk Achieved. The Central Intake Service underwent an assessment and protocols, with the inclusion of additional extensive review and has been streamlined to ensure all screening tools as part of the initial needs assessment, services use a referral prioritisation tool. This has improved with the aim of improving access to services for Allied and access to West Gippsland Healthcare Group Allied and Community Health consumers. Community and Health services.
Partially achieved. The Short Stay Unit (SSU) opened 11th Open Short Stay Unit (SSU) beds to improve Emergency November 2019 with four of the eight beds operational. Department patient flow and monitor the impact by tracking The SSU was successful in achieving a low number of improvement in target times of less than four hours for transfers to an Inpatient Bed from SSU (actual 9.5% v admission. target 15%) but there was little significant improvement in four hour target.
Increase the number of high dependency beds to four, to improve access and decrease transfer to external Not achieved. The Medical Unit was unable to maintain health services. This ensures that a high quality of care four High Dependency Beds throughout the year. The is delivered within the health service for medical and Surgical Unit continued to provide care to high acuity post- surgical patients, within the capabilities of West Gippsland operative patients as required. Healthcare Group.
West Gippsland Healthcare Group Annual Report 2019-20 33 Part A: Strategic priorities
Better Care
GOALS STRATEGIES
Put quality first Targeting zero avoidable harm Join up care Healthcare that focusses on outcomes Partner with patients Patients and carers are active partners in care Strengthen the workforce Care fits together around people’s needs Embed evidence Ensure equal care
HEALTH SERVICE DELIVERABLES OUTCOMES
Achieved. The Community Victorian Health Experience Develop an outcomes and best practice feedback tool Survey (VHES) results have been outstanding, recording a for Allied and Community Health clients that focuses on client satisfaction rate of 98%. outcomes and partnerships with consumers to collect timely feedback. West Gippsland Healthcare Group was above the state average score in 37 of 45 categories.
Establish an Ante-natal Family Violence Consultant role in partnership with Quantum, as a preventative strategy Partly achieved. The role has been recruited to but is still for children and families experiencing family violence. being established. The intended outcome is a whole of health approach to The Strengthening Hospitals Responses to Family Violence family violence and links into the Strengthening Hospitals framework has been embedded into practice. Responses to Family Violence framework.
Achieved. Unplanned re-presentations to the Emergency Monitor and review returns to Emergency Department Department monitored weekly and reviewed and reported within 24 hours discharge from Short Stay Unit to ensure monthly. Unplanned representations to the Emergency effective discharge planning has been put in place. Department unchanged from 2018-2019.
34 West Gippsland Healthcare Group Annual Report 2019-20 Part A: Strategic priorities Specific priorities for 2019 - 20 In 2019-20 West Gippsland Healthcare Group will contribute to the achievement of the Government’s priorities by: Supporting the Mental Health System
HEALTH SERVICE DELIVERABLES OUTCOMES Achieved. West Gippsland Healthcare Group is in partnership with Latrobe Regional Hospital to deliver the Develop partnerships with Latrobe Regional Hospital mental Strengthening Hospitals Responses to Family Violence health and other related services, for example general program. 74% of staff, both clinical and non-clinical, have practice and Quantum. The Partnership with Quantum completed this training. Community Health Services are co- Support Services will allow women and children impacted located with area mental health services. by the trauma of family violence and improve access to West Gippsland Healthcare Group has an ongoing specialised support services. partnership with Quantum as a member of the Integrated Family Services Alliance Governance meeting and is also a member of the Family Violence Alliance for the region. Addressing Occupational Violence Foster an organisational wide occupational health and safety risk management approach, including identifying security risks and implementing controls, with a focus on prevention and improved reporting and consultation. Implement the department’s security training principles to address identified security risks.
HEALTH SERVICE DELIVERABLES OUTCOMES Achieved. Security framework including systems and processes and inspections are embedded and ongoing. Security incidents raised and logged in Riskman are followed up by Facilities Management in conjunction with Health and Wellbeing team. Data trends as well as the annual security risk site audit and recommendations are monitored by the Occupational Health & Safety Committee. Continue regular security risk assessment processes Annual Occupational Violence and Aggression Security Risk across all areas of the health service with resulting actions Assessment Review completed. Security measures actioned managed through the Workplace Health and Well-Being, for 2019-20 include: Learning and Development and Facilities teams - 12 new CCTV points improving site and grounds coverage - Additional LED lighting for cottages and carpark - Anti-jump screens at all nurse stations - Review and upgrade personal alarms - Door access swipe upgrades to radiology department and main entrance public doors to restrict access after-hours - Installation of two infra-red cameras (April 20th) to screen visitors to the hospital as part of COVID-19 response
Continue implementation of the guide for security Achieved. Security audit action items have been completed. The Occupational Violence and Aggression training program arrangements, to prevent and manage Occupational has been re-developed in line with social distancing Violence and Aggression including refresher training. measures and re-launched within the organisation.
West Gippsland Healthcare Group Annual Report 2019-20 35 Part A: Strategic priorities
Addressing Bullying and Harassment Actively promote positive workplace behaviours, encourage reporting and action on all reports. Implement the Department’s Framework for promoting a positive workplace culture: preventing bullying, harassment and discrimination and Workplace culture and bullying, harassment and discrimination training: guiding principles for Victorian health services.
HEALTH SERVICE DELIVERABLES OUTCOMES
Complete positive work place behaviour development Achieved. Behaviour development sessions were sessions across health service teams to create an completed with staff. The “Know Better Be Better” bullying organisation-wide set of behaviour standards, including and harassment campaign model was adapted to link with promotion and tools from the “Know Better Be Better” existing WGHG bullying and harassment programs and campaign. training.
Partially Achieved. The revised set of organisational Implement a revised set of organisation values based on values were agreed and announced as part of the public sector values and team behaviour development “Strategic Plan 2019 – 2024” in March. Production of ‘Our sessions. Values’ booklet and launch was delayed due to COVID-19 response.
Continue ensuring all staff have completed Bullying and Achieved. Staff training in Bullying and Harassment Harassment training and refresher training in line with the incorporated within Mandatory Training policy. New staff are existing implementation plan. trained and refresher training booked as required.
Supporting Vulnerable Patients Partner with patients to develop strategies that build capability within the organisation to address the health needs of communities and consumers at risk of poor access to health care.
HEALTH SERVICE DELIVERABLES OUTCOMES Achieved. An organisation-wide Diversity Plan was Develop a whole of organisation Diversity Plan that focusses developed with significant consultation with consumers, on at-risk and vulnerable groups. For example, chronic the community and the workforce. This included key disease clients and the LGBTI community. A current plan stakeholder groups including representatives of LGBTI already exists for chronic disease funded programs but not community, people living with disability and carers. The as an organisation-wide strategy. Diversity Action Plan is overseen by the Community Voices committee.
Partner with Gippsland Primary Health Network Ideas Bank in implementing an Aboriginal antenatal clinic in collaboration with Ramahyuck and District Aboriginal Co- Not Achieved. A sustainable model has not yet been operative to: support antenatal care for Aboriginal women, developed. improve attendance, improved care planning for birth and outcomes for infants.
36 West Gippsland Healthcare Group Annual Report 2019-20 Part A: Strategic priorities
Supporting Aboriginal Cultural Safety Improve the health outcomes of Aboriginal and Torres Strait Islander people by establishing culturally safe practices across all parts of the organisation to recognise and respect Aboriginal culture and deliver services that meet the needs, expectations and rights of Aboriginal patients, their families, and Aboriginal staff.
HEALTH SERVICE DELIVERABLES OUTCOMES
Achieved. The Cultural Awareness Training package has Align the Cultural Awareness Training package with National been reviewed and aligns with the National Standards. The Standards to ensure service outcomes are meeting the training acknowledges the history of the local Aboriginal expectations and requirements of the Aboriginal and Torres Community and assists in the delivery of culturally sensitive Strait Islander community. practice.
Partially Achieved. 85% of front line staff and 65% of all All front line staff and 50% of all staff to complete cultural staff completed the Cultural Awareness Training package, awareness training by June 2020. consisting of a combination of face-to-face training (with social distancing observed) and online sessions.
Achieved. The local Aboriginal community were engaged Engage with local Aboriginal community to ensure new prior to the opening of the Short Stay in 2019. Local Short Stay Unit is culturally safe and meets needs and Aboriginal art was chosen and is displayed in the Short expectations of Aboriginal patients, families and staff. Stay Unit. Collaboration with the local Aboriginal community continues.
Addressing Family Violence Strengthen responses to family violence in line with the Multi-agency Risk Assessment and Risk Management Framework (MARAM) and assist the government in understanding workforce capabilities by championing participation in the census of workforces that intersect with family violence.
HEALTH SERVICE DELIVERABLES OUTCOMES
The Child Safe and Family Violence Steering Committee Partially Achieved. Phase one roll out of the MARAM will oversee implementation of West Gippsland Healthcare tool to the Family Violence Counselling program completed. Group Strengthening Hospital Responses to Family Violence Phase two of the roll out, organisation-wide, was not in conjunction with MARAM tool. achieved and is scheduled for 2021.
West Gippsland Healthcare Group Annual Report 2019-20 37 Part A: Strategic priorities
Implementing Disability Action Plans Continue to build upon last year’s action by ensuring implementation and embedding of a disability action plan which seeks to reduce barriers, promote inclusion and change attitudes and practices to improve the quality of care and employment opportunities for people with disability.
HEALTH SERVICE DELIVERABLES OUTCOMES
Achieved. The Disability Action Plan was implemented Health and Wellbeing and Community Voices committees and overseen by a committee formed for that purpose. to oversee implementation of Disability Action Plan across All action items have been completed within timelines, West Gippsland Healthcare Group. The first year focus will including updates to policies, recruitment and induction be Capacity Building and Community Collaboration. processes.
Supporting Environmental Sustainability Contribute to improving the environmental sustainability of the health system by identifying and implementing projects and/or processes to reduce carbon emissions.
HEALTH SERVICE DELIVERABLES OUTCOMES
Partially Achieved. Draft Social Procurement Strategy lodged with Department of Premier and Cabinet and awaiting feedback prior to release. Presentation on the draft Strategy was provided to senior staff. Achieve actions outlined in the 2018-2020 Environmental New energy efficient dishwasher, domestic hot water and Management Action Plan and seek to incorporate evaporative cooling plant upgraded in the kitchen. New sustainable objectives arising from the Victorian energy efficient sterilisers installed in theatre. Government’s new Social Procurement Framework. Clinical waste consumption increased 48% in quarter 4 of 2019-20 due to the impact of COVID-19. This prevented WGHG from achieving a reduction in landfill waste. Water consumption increased nearly 20% year on year due to the installation of the new reverse osmosis machine in CSSD to meet upcoming sterilisation standards.
Continue to achieve reduction in greenhouse gas emissions Annual energy savings in year four of the seven-year in year four, of the seven-year Energy Performance Contract Energy Performance Contract (EPC) achieved. Agreed Savings. Greenhouse gas emissions were down 2.3% (168 tonnes).
38 West Gippsland Healthcare Group Annual Report 2019-20 Our Performance Part B: Performance priorities
High quality and safe care Key performance measure Target 2019-20 Result Accreditation Compliance with the Aged Care Accreditation Standards Full compliance Full compliance Infection prevention and control Compliance with the Hand Hygiene Australia program^ 83% 86% Percentage of healthcare workers immunised for influenza 84% 91%
Patient experience Key performance measure Target 2019-20 Result Victorian Healthcare Experience Survey - data submission Full compliance Full compliance Victorian Healthcare Experience Survey - percentage of positive patient experience responses – Quarter 1 95% 96% Victorian Healthcare Experience Survey - percentage of positive patient experience responses – Quarter 2 95% 93% Victorian Healthcare Experience Survey - percentage of positive patient experience responses – Quarter 3 95% 94% Victorian Healthcare Experience Survey - percentage of very positive responses to questions on discharge care – Quarter 1 75% 81% Victorian Healthcare Experience Survey - percentage of very positive responses to questions on discharge care – Quarter 2 75% 76% Victorian Healthcare Experience Survey - percentage of very positive responses to questions on discharge care – Quarter 3 75% 81% Victorian Healthcare Experience Survey - patient’s perception of cleanliness - Quarter 1 70% 72% Victorian Healthcare Experience Survey - patient's perception of cleanliness - Quarter 2 70% 81% Victorian Healthcare Experience Survey - patient's perception of cleanliness - Quarter 3 70% 80%
Healthcare associated infections (HAI's) Number of patients with surgical site infection No outliers Achieved
Adverse events Sentinel events - root cause analysis (RCA) reporting All RCA reports submitted Achieved within 30 business days Unplanned readmission hip replacement Annual rate ≤2.5% N/A
Maternity and newborn Rate of singleton term infants without birth anomalies with Apgar Score <7 at 5 minutes ≤1.4% 1.0% Rate of severe foetal growth restriction (FGR) in singleton pregnancy undelivered by 40 weeks ≤28.6% 18.2% Proportion of urgent maternity patients referred for obstetric care to a level 4, 5 or 6 maternity service who were booked for a specialist clinic appointment within 30 days of accepted referral 100% 100%
^ Hand hygiene – Quarter 4 data is not available due to COVID-19. Result is based on available data.
West Gippsland Healthcare Group Annual Report 2019-20 39 Part B: Performance priorities
Strong Governance, leadership and culture Key performance measure Target Result Organisational culture People Matter Survey - percentage of staff with a positive response to safety culture questions 80% 92% People Matter Survey - percentage of staff with a positive response to the question, "I am encouraged by my colleagues to report any patient safety concerns I may have." 80% 97% People Matter Survey - percentage of staff with a positive response to the question, "Patient care errors are handled appropriately in my work area." 80% 93% People Matter Survey - percentage of staff with a positive response to the question, "My suggestions about patient safety would be acted upon if I expressed them to my manager." 80% 94% People Matter Survey - percentage of staff with a positive response to the question, "The culture in my work area makes it easy to learn from the errors of others." 80% 89% People Matter Survey - percentage of staff with a positive response to the question, "Management is driving us to be a safety-centred organisation." 80% 93% People Matter Survey - percentage of staff with a positive response to the question, "The health service does a good job of training new and existing staff." 80% 89% People Matter Survey - percentage of staff with a positive response to the question, "Trainees in my discipline are adequately supervised." 80% 87% People Matter Survey - percentage of staff with a positive response to the question, "I would recommend a friend or relative to be treated as a patient here." 80% 91%
40 West Gippsland Healthcare Group Annual Report 2019-20 Part B: Performance priorities
Timely access to care Key performance measure Target 2019-20 Result Emergency care Percentage of patients transferred from ambulance to emergency department within 40 minutes 90% 95% Percentage of Triage Category 1 emergency patients seen immediately 100% 100% Percentage of Triage Category 1 to 5 emergency patients seen within clinically recommended time 80% 72% Percentage of emergency patients with a length of stay less than four hours 81% 67% Number of patients with a length of stay in the emergency department greater than 24 hours 0 9
Elective surgery Percentage of Urgency Category 1 elective patients admitted within 30 days 100% 100% Percentage of Urgency Category 1, 2 and 3 elective patients admitted within clinically recommended time 94% 73% Percentage of patients on the waiting list who have waited longer than 5% or 15% Not Achieved clinically recommended time for their respective triage category proportional improvement from prior year Number of patients on the elective surgery waiting list1 440 519* Number of hospital initiated postponements per 100 scheduled elective surgery admissions ≤7/100 7.8* Number of patients admitted from the elective surgery waiting list 2,640 2,250
Specialist Clinics Percentage of urgent patients referred by a GP or external specialist who attended a first appointment within 30 days 100% 99% Percentage of routine patients referred by a GP or external specialist who attended a first appointment within 365 days 90% 99%
1 The target shown is the number of patients on the elective surgery waiting list as at 30 June 2020 * Exceptional Circumstances events (the unplanned closure of operating theatres in July and August and COVID -19 in 2020) adversely impacted elective surgery performance with the exception of urgent (category 1) patients
West Gippsland Healthcare Group Annual Report 2019-20 41 Part B: Performance priorities
Effective Financial management
Key performance measure Target 2019-20 Result Finance Operating result ($m) -$1.75m -$1.75m Average number of days to paying trade creditors 60 days 56 days Average number of days to receiving patient fee debtors 60 days 29 days Public & private WIES2 activity performance to target 100% 93.98%** Adjusted current asset ratio 0.7 or 3% 0.74 improvement from health service base target Forecast number of days available cash (based on end of year forecast) 14 days 13.1 days Actual number of days available cash, measured on the last day of each month 14 days Achieved Variance between forecast and actual Net result from transactions (NRFT) for the current financial year ending 30 June Variance ≤ $250,000 Achieved
2WIES is a Weighted Inlier Equivalent Separation **Due to an Exceptional circumstance event – (the unplanned closure of operating theatres in July and August), obstetrics, elective and emergency surgery were impacted causing a shortfall of 402 WIES equating to an under achievement of 3.9% of target. Surgery and medical admissions were also impacted by COVID-19 further reducing activity.
42 West Gippsland Healthcare Group Annual Report 2019-20 Part C: Activity and funding
Acute Admitted 2019-20 Activity Achievement WIES Public 9,502 WIES Private 274 WIES DVA 67 WIES TAC 9
Acute Non-Admitted Home Enteral Nutrition 91 Specialist Clinics 19,473
Subacute & Non-Acute Admitted Subacute WIES - GEM Public 81 Subacute WIES - GEM Private 4 Subacute WIES - Palliative Care Public 31 Subacute WIES - Palliative Care Private 1 Subacute WIES - DVA 1
Subacute Non-Admitted Health Independence Program - Public 18,174
Aged Care Residential Aged Care 32,540 HACC 4,991
Primary Health Community Health / Primary Care Programs 6,302
West Gippsland Healthcare Group Annual Report 2019-20 43 Key Performance Indicators
Five year WIES comparison
11000 10000 9000 8000 7000 9929 8824 8997 9546 9667 9748 10451 10523 10255 6000 10176 5000 4000 3000 2000 1000 0 2019-20## 2018-19# 2017-18 2016-17 2015-16
Total Target WIES Actual WIES
WIES stands for Weighted Inlier Equivalent Separation. The Victorian Government uses WIES as their activity based case mix funding policy for public hospitals. Each hospital admission is assigned a WIES value based on the Diagnosis Related Group (DRG) and length of stay. Force Majeure events # 2018-19 WIES performance was impacted by an exceptional circumstance event being the unplanned closure of op- erating theatres during May and June 2019. Obstetrics, elective and emergency surgery were impacted during this time, resulting in lost WIES activity of 523 WIES. 2018-19 WIES performance of 9,929 has not been re-based for this (Force Majeure event no 1). ## 2019-20 WIES performance of 10,255 includes a re-basing adjustment for the 402 WIES recognised by DHHS as lost activity arising due to an exceptional circumstance event – (a second unplanned closure of operating theatres during July and August 2019). Obstetrics, elective and emergency surgery were impacted during this period (Force Majeure event no 2).
44 West Gippsland Healthcare Group Annual Report 2019-20 Five year financial comparison
2020 2019 2018 2017 2016 $000 $000 $000 $000 $000 Operating Result (1,754) (3,722) 660 1,214 331 Total Revenue 126,016 118,102 114,678 108,084 96,351 Total Expenditure 130,447 124,515 115,240 107,076 100,568 Net Result from Transaction (4,431) (6,413) (562) 1,008 (4,217) Total other Economic Flows (81) 99 (104) 91 48 Net Result (4,423) (6,225) (666) 1,099 (4,169) Total Assets 107,466 109,439 107,627 101,417 94,571 Total Liabilities 42,594 40,201 35,223 34,212 30,354 Total Equity 64,872 69,238 72,404 67,205 64,217
Reconciliation between the Net result from transactions reported in the model to the Operating result as agreed in the Statement of Priorities
2020 2019 2018 2017 2016 $000 $000 $000 $000 $000 Net Operating Result (1,754) (3,722) 660 1,214 331 Capital and specific items Capital purpose income 5,118 4,676 5,349 6,094 2,249 Specific income - - - 470 - COVID 19 State Supply Arrangements - Assets 100 - - - - received free of charge or for nil consideration under the State Supply State supply items consumed up to 30 June 2020 (100) - - - - Assets provided free of charge - - - - - Assets received free of charge - - 185 5 - Expenditure for capital purpose (507) (181) (261) (257) (406) Depreciation and amortisation (7,199) (7,097) (6,495) (6,518) (6,391) Other non-operating expenses (89) (89) - - - Net result from transactions (4,431) (6,413) (562) 1,008 (4,217)
West Gippsland Healthcare Group Annual Report 2019-20 45 46 West Gippsland Healthcare Group Annual Report 2019-20 Financial Report
The 2019-20 financial year was another challenging one for Total expenditure from transactions before depreciation WGHG. increased 5% to $123.25m. Employee expenses increased $6.12m or 6.8% and included additional staffing for extra We started the financial year experiencing a second round capacity SSU and extra haemodialysis sessions, incremental of unplanned operating theatre closures (first round closures costs in managing COVID-19 plus the full year impact of a 9% occurred May 2019). This impacted on our elective surgery increase arising from the nurses EBA pay and classification patient through-put and our ability to achieve our budget of changes from April 2019. 4% above the annual Weighted Inlier Equivalent Separation (WIES) target for the year. In discussions with the Department Other operating expenses increased 10.8%, reflective of of Health and Human Services (DHHS), this event was increased operational capacity and COVID-19 costs but also accepted as a force majeure event, with DHHS recognising continued increases in radiology costs and higher patient the lost WIES activity (equivalent to 402 WIES) as an ambulance transfer costs, partly associated with theatre adjustment to our actual WIES achievement for the year. closures.
Then, following a cybersecurity attack in October 2019 that The net result for the year after depreciation and other disrupted our systems and operations, a global pandemic economic flows was a loss of $4.42m. This compared to emerged in early 2020 followed by a declared State of a loss of $6.22m in 2018-19. Depreciation for the year of Emergency for Victoria. This pandemic not only impacted on $7.2m was relatively consistent to 2018-19. our ability to meet and exceed our annual WIES target, it also Cash reserves for the year reduced by $3.1m to $6.5m. resulted in the significant loss of revenue for our commercial Purchases of assets for the year totalled $7m and included laundry operations and cafeteria. the completion of new buildings and purchases of new and In managing our response to COVID-19, we were fortunate to replacement plant and equipment. A cash advance from receive additional DHHS funding support, including a change DHHS of $1.23m in June 2020 helped maintain a cash ratio to policy and funding recall provisions for WIES allowing of just below the key performance benchmark of 14 days recall to be re-purposed as COVID-19 funding. This additional available cash. funding enabled WGHG to achieve its budgeted $1.75m The Group’s liquidity ratio declined on the back of the operating loss as stated in our Statement of Priorities. operating loss, falling from 0.69 last year to 0.60 as at June Total revenue from transactions for the 2019-20 year was 2020. Net assets declined a further $4.37m to $64.87m. $126m, representing an increase of $7.91m or 6.7%. This Diligent cash and liquidity management remains a key focus included both operational and capital funding. Government for the Group, especially in this uncertain COVID-19 era that grant revenue increased $8.61m to $102.51m. This requires a new business-as-usual operating environment to increase included additional funding for the Nurse Enterprise be understood and worked through. Our commitment to meet Bargaining Agreement (EBA) outcomes and amendments to the health and wellbeing needs of our Community is what the Safe Patient Act, one-off additional WIES funding awarded drives us and builds our resilience as we continue to respond mid-year to support additional elective surgery plus $1.35m to this pandemic. additional COVID-19 funding support. Capital revenue included $2.8m in progress claims received from DHHS under the Regional Health Infrastructure Fund (RHIF) rounds following the practical completion of the Short Stay Unit (SSU) and third theatre major capital projects.
West Gippsland Healthcare Group Annual Report 2019-20 47 Environment Performance Summary 2019-2020
GREENHOUSE GAS EMISSIONS Total greenhouse gas emissions (tonnes CO2e) 2020 2019 2018 Scope 1 3,781 3,932 3,862 Scope 2 3,343 3,428 3,429 Total 7,124 7,359 7,291
Normalised greenhouse gas emissions 2020 2019 2018 Emissions per unit of floor space (kgCO2e/m2) 277.42 291.72 289.02 Emissions per unit of separations (kgCO2e/separations) 473.95 557.49 537.60 Emissions per unit of bed-day (LOS+Aged Care Cooinda Lodge only) (kgCO2e/OBD) 155.89 152.23 156.05
STATIONARY ENERGY Total stationary energy purchased by energy type (GJ) 2020 2019 2018 Electricity 11,798 11,426 11,537 Natural Gas 72,595 76,320 74,925 Total 84,393 87,746 86,462
Electricity and gas consumption data is for the main hospital site only including the Warragul Linen Service. Total energy consumption continues to decline, reducing 2.4% for the 2019-20 financial year. Gas consumption fell 3.1% with a number of gas fired plant units were replaced with electricity powered units e.g. sterilisers in theatre. Electricity consumption was 2.3% higher which included the changeover of some gas fired plant to electricity, balance of major onsite construction works plus half year operational effect of the new Short Stay Unit and third theatre builds. WGHG continues to achieve the annual energy savings under its seven year Energy Performance Contract which commenced in May 2016.
Normalised stationary energy consumption 2020 2019 2018 Energy per unit of floor space (GJ/m2) 3.29 3.48 3.43 Energy per unit of Separations (GJ/Separations) 5.61 6.65 6.37 Energy per unit of bed-day (LOS+Aged Care Cooinda only) (GJ/OBD) 1.85 1.82 1.85
Floor space has increased 450m2 with the construction of the new SSU and third theatre builds on site being completed. Energy performance for 2019-20 relative to separations continues to improve. Consumption has decreased 2.3% despite increased activity and works on site. Energy performance for 2019-20 relative to bed days has remained the same, with continued reduced occupancy at Cooinda Lodge.
48 West Gippsland Healthcare Group Annual Report 2019-20 WATER Total water consumption by type (kL) 2020 2019 2018 Potable Water 36,879 30,946 30,921 Total 36,879 30,946 30,921
Water consumption data is main hospital site only excluding Warragul Linen Service. Water usage has increased dramatically, up 19.3%. This was largely due to the rainwater tank connection feeding the gas fired boilers being disconnected during the third theatre build, which meant mains water had to be used. Water consumption also increased with the additional three PM haemodialysis shifts per week from February 2020 plus the new reverse osmosis water plant commissioned in the new third theatre from September 2019.
Normalised water consumption (Potable + Class A) 2020 2019 2018 Water per unit of floor space (kL/m2) 1.44 1.23 1.23 Water per unit of separations (kL/separations) 2.45 2.34 2.28 Water per unit of bed-day (LOS+Aged Care OBD) (kL/OBD) 0.58 0.47 0.48
WASTE AND RECYCLING Waste (tonnes) 2020 2019 2018 Total waste generated (clinical waste+general waste+recycling waste) 271 250 282 Total waste to landfill generated (clinical waste+general waste) 208 212 230 Total waste to landfill per patient treated ((kg clinical waste+kg general waste)/PPT) 2.02 2.07 2.26 Recycling rate % (recycling / (general waste+recycling)) 24.5% 20.9% 19.0%
Total waste generated reduced by 3.9% for 2019-20 despite increased patient activity onsite and ongoing building works. Clinical waste increased 27.7%, with quarter 4 up 48% due to COVID-19 and increased use of PPE. Landfill reduced by 11% year on year, with nearly 25% being diverted. Our Environmental Sustainability Committee continues to drive culture changes in waste handling and management.
Normalisers (for information only) 2020 2019 2018 Area M2 25,678 25,228 25,228 Aged Care OBD 32,651 34,805 33,214 Aged Care OBD Cooinda Lodge only 14,646 17,179 15,392 ED Departures 24,345 23,092 23,941 FTE 774 756 778 LOS 31,051 31,165 31,334 OBD 63,702 65,970 64,548 Separations 15,030 13,201 13,563 PerPTTreated (OBD + ED Departures + separations) 103,077 102,263 102,052 Definitions: ED = Emergency Department OBD = Overnight Bed days FTE = Full Time Equivalent LOS = Length Of Stay PPT = Per Patient Treated Separations = an end of an episode of care for admitted patients
West Gippsland Healthcare Group Annual Report 2019-20 49 Reporting Requirements
Freedom of Information LIDP Achieved / Under the Freedom of Information Act 1982 (the FOI Act) any Employment commitment secured TOTAL person can ask to see documents held by the West Gippsland type Healthcare Group. Created Retained Created Retained Apprentices 1 5 1 5 6 Consumers wishing to access documents may contact the Freedom of Information Officer at WGHG on 03 5623 0611. Trainees 1 4 1 5 6 The FOI Officer is the Manager, Health Information Services with Standard 4 60 4 81 85 final approval by the Chief Medical Officer. Guidance can be Employees provided on how to make a request, what format it should be in Grand Total 97 and any costs associated. Information is also available on the WGHG website: www.wghg.com.au under Patient Information. National Competitive Policy During the 2019-20 financial year, 47 requests for It is Government policy that the costing policies of publicly information under the regulations of the FOI Act were funded organisations should reflect any competitive received. Access was granted in full to all 47 applicants. advantage available to the private sector. During 2019-2020 all competitive neutrality requirements were met. A majority of requests (34) were made by lawyers and insurance companies on behalf of patients and remainder Conformity & Building were directly requested by the general public. Maintenance Full Access...... 47 All renovations to existing buildings are assessed for Partial Access...... 0 conformance to the Building Act 1993, including relevant Denied...... 0 provisions of the National Construction Code. The construction project assessment form ensures conformity to the Act Withdrawn...... 0 and enables early identification of asbestos and/or other No Documents...... 0 work health safety risks that may require controls prior to Not yet finalised...... 0 commencement of works. Where necessary, an independent TOTAL...... 47 building inspector is engaged to ensure compliance with the Building Act 1993. Local Jobs First All existing buildings complied with regulations in force at the time of construction. There were no emergency orders nor The Local Jobs First Policy (LJF) ensures government building orders to cease occupancy or to undertake urgent works. supports Victorian businesses and workers by mandating that small and medium-sized enterprises (SMEs) are given full and WGHG is subject to a Fire Safety Audit and Risk Assessment fair opportunity to compete for government contracts of all according to revised standards as directed by the Department sizes and types. of Health and Human Services (DHHS) and WGHG confirm certification as required under Capital Development Guidelines Under the Local Jobs First Act 2003, WGHG is required to - Series 7 Fire Risk Management, dated August 2013: Fire Risk apply the Local Jobs First policy to all procurement activities Management, specifically 7.6: Fire Risk Management for Hospitals. valued at $1million or more in regional Victoria. During 2019-20, WGHG completed an ICN registered Buildings procurement activity for the design and construction of The following major building projects were completed in an eight bed Short Stay Unit and third Operating Theatre 2019-2020 and are subject to conditions and inspections (extensions to the main hospital building). Practical under the Buildings Act 1993: Completion for each portion was achieved 26th August 2019 • Construction of a five unit accommodation dwelling at 6 and 23rd September 2019 respectively. Sargeant Street, Warragul. • Design and Construction of an eight bed Short Stay Unit This activity was registered with the Industry Capability and third Operating Theatre (extensions to the main Network (ICN) in June 2018 ICN2018-E403 and a hospital building) Competitive Tender was issued to INTREC to complete the building works. Upon project completion, INTREC (the Certificates of Occupancy were issued as follows: Supplier) fulfilled their Local Jobs First commitment, with the • Short Stay Unit - 8th July 2019 following outcomes achieved: • 6 Sargeant Street - 29th July 2019 • Third Operating Theatre - 23rd September 2019
50 West Gippsland Healthcare Group Annual Report 2019-20 Reporting Requirements
Maintenance Protected Disclosure Act 2012 A number of critical assets were refreshed in 2019-2020 including: West Gippsland Healthcare Group complies with the Protected • Public Lift Disclosure Act 2012 and has a Protected Disclosure Policy • Main Kitchen Dishwasher available to staff on the WGHG intranet or via the Executive • Domestic Hot Water Units Office. The Chief Executive Officer is the Protected Disclosure • Heating Ventilation and Air Conditioning Units Coordinator for the purpose of the Protected Disclosure Act. • Theatre Sterilisers There were no complaints made under the Act against West • Duel Washer Sterilisers across several locations Gippsland Healthcare Group or its staff for 2019-20. • Reverse Osmosis Water Treatment System • Improved Security Measures Safe Patient Care Act (2015) The Asset Management Strategy was updated with WGHG West Gippsland Healthcare Group complies with the Safe intending to submit applications for infrastructure grants Patient Care (Nurse to Patient and Midwife to Patient Ratios) under the DHHS funding rounds to undertake identified major Act. The legislation ensures the number of nurses and works and enable continued safe and effective operations on midwives per patient is preserved and protected. the existing hospital site. During 2019-20, WGHG had no matters to report in relation to its A Preventative Maintenance program is in place. obligations under section 40 of the Safe Patient Care Act 2015. Details of Information and Carers Recognition Act Communication Technology (ICT) The Carers Recognition Act 2012 formally recognises Expenditure and values the role of carers and the importance of care ICT expenditure represents an entity’s costs in providing relationships in the Victorian community. business-enabling ICT services and consists of the following A carer is a person who provides personal care, support and cost elements: assistance to another person who has a disability, ongoing • Operating and capital expenditure (including depreciation) medical condition, mental illness, or who is frail and aged. • ICT services – internally and externally sourced WGHG recognises the principles of the Act and has • Cost in providing ICT services (including personnel & incorporated these into multiple strategies including a facilities) across the agency, whether funded through a Disability Plan, Diversity Plan and Community Participation central ICT budget or through other budgets Plan. These plans were developed in consultation with community, including people living with disability and carers. • Cost in providing ICT services to other organisations WGHG has chosen the two domains of Effective Total ICT expenditure is made up of Business as Usual (BAU) Communication and Equity and Inclusion to focus on under and Non Business as usual (NBAU) expenditure: Safer Care Victoria’s Partnering in Healthcare Framework. a. Business As Usual (BAU) expenditure – includes all These areas of focus, along with strategic objectives remaining ICT expenditure other than Non-BAU ICT of Person-Centred Care and Inclusiveness, assist us to expenditure and typically relates to ongoing activities to recognise, promote and value the role of carers in our local operate and maintain the current ICT capability. community. b. Non-Business As Usual (Non-BAU) expenditure – is a subset of ICT expenditure that relates to extending or enhancing current ICT capabilities and are usually run as projects. The total ICT expenditure incurred during 2019-20 is $3.2m (excluding GST) with the details shown below. This includes WGHG's annual membership contribution to core and non- core services of the Gippsland Health ICT Alliance (GHA). ($'000) Business As Usual (BAU) ICT expenditure Non-Business as Usual (non-BAU ICT expenditure) Total Total=Operational expenditure and Operational expenditure Capital expenditure (excluding GST) Capital Expenditure (excl. GST) (a) + (b) (excl. GST) (a) (excluding GST) (b) 2,663 542 506 35
West Gippsland Healthcare Group Annual Report 2019-20 51 Reporting Requirements
Consultancies Disclosure Details of consultancies over $10,000 Details of consultancies (valued at $10,000 or In 2019-20, there were four consultancies where the total greater) fees payable to the consultants were less than $10 000. The In 2019-20, there were seven consultancies where the total total expenditure incurred during 2019-20 in relation to these fees payable to the consultants were $10 000 or greater. The consultancies is $18,745 (excl. GST). total expenditure incurred during 2019-20 in relation to these consultancies is $283,000 (excl. GST).
Total Expenditure Future Start End approved 2019-20 expenditure Consultant Purpose of Consultancy date date project fee (excl. GST) (excl. GST) (excl. GST) $'000 $'000
Batman Discretionary Review of Aged Care Funding Jul-19 Nov-19 33 33 Trust (Provider Assist) Instrument (ACFI)
The Lixivium Unit Trust Facilitation of Annual Board Evaluation Jun-19 Jul-19 12 12 (Lixivium Consulting)
Synchronicity Government engagement strategy and Consulting Pty Ltd Strategic Planning Facilitation - Annual Jul-19 Jun-20 28 28 (Spark Strategy) Board planning day
Professional coaching services The Tilbury Group Pty sessions provided to Management Jul-19 ongoing 51 51 Ltd each year
Advisory services to support strong Studer Group leadership and positive organisational Jul-19 Dec-20 128 68 60 culture
Project Manager(PM), Principal Architect (PA), Quantity Surveyor Johnstaff Pty Ltd (QS), Building Surveyor (BS), (PM), Lyons (PA), Hospital Equipment Consultant (ES) Altus Group (QS), BSA Jul-19 Sep-20 91 91 4 - Consultant team (Regional Health Building Surveyors Infrastructure Fund Round 1) 8 Bed (BS), HEPA (ES) Short Stay Unit and third Theatre Development Projects
52 West Gippsland Healthcare Group Annual Report 2019-20 Additional Information available on request
Consistent with FRD 22H (Section 5.19) the report of • Details of overseas visits undertaken including a summary operations confirms that details in respect of the items listed of the objectives and outcomes of each visit below have been retained by West Gippsland Healthcare • Details of major promotional, public relations and Group and are available to the relevant Ministers, Members of marketing activities undertaken by the Health Service to Parliament and the public on request (subject to the Freedom develop community awareness of the Health Service and of Information requirements, if applicable): its services • Declarations of pecuniary interests have been duly • Details of assessments and measures undertaken to completed by all relevant officers improve the occupational health and safety of employees • Details of shares held by senior officers as nominee or held • General statement on industrial relations within the Health beneficially Service and details of time lost through industrial accidents • Details of publications produced by the entity about itself, and disputes, which is not otherwise detailed in the report and how these can be obtained of operations • Details of changes in prices, fees, charges, rates and levies • A list of major committees sponsored by the Health charged by the Health Service Service, the purposes of each committee and the extent to • Details of any major external reviews carried out on the which those purposes have been achieved Health Service • Details of all consultancies and contractors including • Details of major research and development activities consultants/contractors engaged, services provided, and undertaken by the Health Service that are not otherwise expenditure committed for each engagement covered either in the report of operations or in a document that contains the financial statements and report of operations
Photo: A ‘Make our Residents Smile’ campaign during COVID 19 visitor restrictions resulted in community members sending in messages of cheer to residents at Cooinda Lodge and Andrews House.
West Gippsland Healthcare Group Annual Report 2019-20 53 54 West Gippsland Healthcare Group Annual Report 2019-20 Attestations
Responsible Bodies Declaration Integrity, Fraud and Corruption In accordance with the Financial Management Act 1994, I am I, Dan Weeks, certify that West Gippsland Healthcare Group has pleased to present the Report of Operations for West Gippsland put in place appropriate internal controls and processes to ensure Healthcare Group for the year ending 30 June 2020. that integrity, fraud and corruption risks have been reviewed and addressed at West Gippsland Healthcare Group during the year.
Christine Holland Board Chair Dan Weeks, Warragul Chief Executive Officer 22nd October, 2020 Warragul 22nd October, 2020
Financial Management Compliance I, Christine Holland, on behalf of the Responsible Body, certify Conflict of Interest that the West Gippsland Healthcare Group has no Material I, Dan Weeks, certify that the West Gippsland Healthcare Group Compliance Deficiency with respect to the applicable Standing has put in place appropriate internal controls and processes to Directions under the Financial Management Act 1994 and ensure that it has complied with the requirements of hospital Instructions. 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 Christine Holland been completed by all executive staff within West Gippsland Board Chair Healthcare Group and members of the board, and all declared Warragul conflicts have been addressed and are being managed. Conflict 22nd October, 2020 of interest is a standard agenda item for declaration and documenting at each executive board meeting.
Data Integrity Declaration I, Dan Weeks, certify that the West Gippsland Healthcare Group has put in place appropriate internal controls and processes Dan Weeks to ensure that reported data accurately reflects actual Chief Executive Officer performance. West Gippsland Healthcare Group has critically Warragul reviewed these controls and processes during the year. 22nd October, 2020
Dan Weeks Chief Executive Officer, Warragul 22nd October, 2020
West Gippsland Healthcare Group Annual Report 2019-20 55 Photo: Aerial image of West Gippsland Hospital 2020 by WGHG ICT Services, Simon Schreyer and Adam Slattery
56 West Gippsland Healthcare Group Annual Report 2019-20 Financial Report
West Gippsland Healthcare Group Annual Report 2019-20 57 Financial index for the financial year ended 30 June 2020
Notes to the F West Gippsland Healthcare Group for the financial year
Financial Report How this report is structured West Gippsland Healthcare Group has presented its audited general purpose financial statements for the financial year ended 30 June 2020 in the following structure to provide users with the information about West Gippsland Healthcare Group’s stewardship of the resources entrusted to it. Page Table of Contents Number ContentsNote Page Board Member's, accountable officer's, and chief finance & accounting officer's declaration 59 Auditor- General's Repor t 60 - 61 Board Director's, Accountable Officer's, and Chief Finance & Accounting Officer's declaration ...... 59 Comprehensive Operating Statement 62 Balance Sheet 63 Auditor SGeneral’statement oReportf Chang...... es in Equity ...... 60-6164 Cash Flow Statement 65 Comprehensive1 1 Summa Operatingry of Signific Statementant Account i.n...... g Policies 67 - 68 62 2 2.1 (a) Income from Transactions 70 - 71 Balance2 Sheet.1 (b) F...... air value of assets and services received free of charge or for nominal consideration ...... 72 - 73 63 3 3.1 Expenses from Transactions 75 - 76 3.2 Analysis of expense and revnue by internally manged and restricted specific purpose funds 77 Statement3.3 ofEm Changesployee be ninef iEquityts in the...... balance sheet 78...... - 79 64 3.4 Superannuation 80 4.1 Investments and Other Financial Assets 82 Cash4 Flow Statement ...... 65 4.2 (a) Property, plant and equipment: Gross carrying amount and accumulated depreciation 86 4.2 (b) Property, Plant and Equipment: Reconciliation of carrying amount by class of asset 87 Notes to4 .the2 (c )Financial Property, pStatementslant and equ...... ipment: Fair value measurement hierarchy for assets 66 88-124 4.2 (d) Property, plant and equipment: Reconciliation of level 3 Fair Value 89 4.2 (e) Property, plant and equipment: Fair value determination 90 Glossary4 .of2 ( Termsf) Prope andrty, p Stylelant a nConventionsd equipment: R ...... evaluation surplus 125-12991 4.3 Depreciation and Amortisation 92 Disclosure4.3 (Indexa) Us.e...... ful Life ...... 92130 5 5.1 Receivables 94 - 95 5.2 Payables 96 - 97 5.3 Other liabilities 98 6 6.1 Borrowings 100 - 102 6.2 Cash and Cash Equivalents 103 6.3 Commitments for expenditure 104 7 7.1 Financial Instruments: (a) Categorisation of Financial Instruments 107 - 108 7.1 Financial Instruments: (b) Net holding gain/(loss) by category 109 7.1 Financial Instruments: (c) Maturity Analysis 110 7.2 Contingent Assets and Contingent Liabilities 111 8 8.1 Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities 113 8.2 Responsible Persons 114 8.3 Remuneration of Executives 115 8.4 Related Parties 116 - 117 8.5 Remuneration of Auditors 118 8.6 Events Occurring after the Balance Sheet Date 119 8.7 Jointly Controlled Operations 120 8.8 Economic Dependency 121 8.9 Changes in accounting policy, revision of estimates and corrections of prior period errors 122 - 123 8.10 AASBs Issued that are not yet Effective 124
58 West Gippsland Healthcare Group Annual Report 2019-20 West Gippsland Healthcare Group Annual Report 2019-20 59
Independent Auditor’s Report To the Board of West Gippsland Healthcare Group Independent pinion I have Auditor’s audited the financial Report report of West Gippsland Healthcare Group (the health service) which comprises the:
To the Board of West• Gippslandbalance Healthcare sheet as at 30 Group June 2018 Opinion I have •audited comprehensive the financial report operating of West statement Gippsland for theHealthcare year then Group ended (the health service) which •comprises statement the: of changes in equity for the year then ended • cash flow statement for the year then ended • balance sheet as at 30 June 2020 • notes to the financial statements, including significant accounting policies • comprehensive operating statement for the year then ended • board member's, accountable officer's and chief finance & accounting officer's • statement of changes in equity for the year then ended declaration. • cash flow statement for the year then ended • Innotes my opinion to the financial the financial statements, report presents including fairly, significant in all materialaccounting respects, policies the financial • positionboard directors' of the health, accountable service as officer's at 30 June, and 2 chief018 and finance their & financial accounting performance officer's and cash flowsdeclaration 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 In my opinion the financial report presents fairly, in all material respects, the financial Standards. position of the health service as at 30 June 2020 and their financial performance and cash sis or flows forI have the conducted year then endedmy audit in accordancein accordance with with the the financial Audit Actreporting 1994 which requirements incorporates of the pinion Part 7 Australianof the Financial Auditing Management Standards. ActI further 1994 describeand applicable my responsibilities Australian Accounting under that Act and Standards.those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. Basis for I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Opinion AustralianMy independence Auditing Standards. is established I further by describe the Constitution my responsibilities Act 1975. underMy staff that and Act I areand those independentstandards in theof the Auditor’s health Responsibilitiesservice in accordance for the with Audit the of ethicalthe Financial requirements Report section of the of my Accountingreport. 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 My independence is established by the Constitution Act 1975. My staff and I are Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance independent of the health service in accordance with the ethical requirements of the with the Code. Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for ProfessionalI believe Accountants that the audit (the evidence Code) that I have are relevantobtained to is mysufficient audit of and the appropriate financial report to provide in a Victoriabasis. My for staff my and opinion. I have also fulfilled our other ethical responsibilities in accordance with the Code. o rd’s The Board of the health service is responsible for the preparation and fair presentation of responsi i itiesI believe the that financial the audit report evidenc in accordancee I have obtained with Australian is sufficient Accounting and appropriate Standards to and provide the Financial a or t e basis forManagement my opinion. Act 1994, and for such internal control as the Board determines is necessary in n i to enable the preparation and fair presentation of a financial report that is free from Board’s The Board of the health service is responsible for the preparation and fair presentation of report material misstatement, whether due to fraud or error. responsibilities the financial report in accordance with Australian Accounting Standards and the Financial for the ManagementIn preparing Act 1994 the financial, and for report,such internal the Board control is responsible as the Board for determine assessing sthe is necessary health service ’s financial to enableability the to preparation continue as and a going fair presentation concern, disclosing, of a financial as applicable, report that matters is free related from to going report materialconcern misstatemen and usingt, whether the going due concern to fraud basis or error.of accounting unless it is inappropriate to do so. 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.
60 West Gippsland Healthcare Group Annual Report 2019-20
Auditor’s As required by the Audit Act 1994, my responsibility is to express an opinion on the financial responsibilities report based on the audit. My objectives for the audit are to obtain reasonable assurance for the audit about whether the financial report as a whole is free from material misstatement, whether of the financial due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable report assurance is a high level of 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 29 October 2020 as delegate for the Auditor-General of Victoria
West Gippsland Healthcare Group Annual Report 2019-20 612 Comprehensive Operating Statement for the financial year ended 30 June 2020
West Gippsland Healthcare Group Comprehensive Operating Statement
2020 2019 $'000 $'000 Income from transactions Operating activities 2.1 125,723 117,534 Non-operating activities 2.1 293 568 Total Income from Transactions 126,016 118,102
Expenses from Transactions Employee expenses 3.1 (96,260) (90,094) Supplies and consumables 3.1 (13,761) (14,897) Finance costs 3.1 (91) (81) Depreciation and amortisation 4.3 (7,199) (7,097) Other administrative expenses 3.1 (6,676) (6,506) Other operating expenses 3.1 (6,371) (5,751) Other non-operating expenses 3.1 (89) (89) Total Expenses from Transactions (130,447) (124,515)
Net Result from Transactions - Net Operating Balance (4,431) (6,413)
Other Economic Flows included in Net Result Net Gain/(Loss) on sale of non-financial assets 52 21 Net Gain/(Loss) on financial instruments at fair value 10 (43) Other Gain/(Loss) from other economic flows (54) 210 Total Other Economic Flows included in Net Result 8 188
Net Result for the year (4,423) (6,225)
Other Comprehensive Income
Items that will not be reclassified to Net Result Changes in property, plant and equipment revaluation surplus 4.2(b) - 3,059
Total Other Comprehensive Income - 3,059
Comprehensive Result for the Year (4,423) (3,166)
This Statement should be read in conjunction with the accompanying notes.
62 West Gippsland Healthcare Group Annual Report 2019-20 Balance Sheet for the financial year ended 30 June 2020 West Gippsland Healthcare Group Balance Sheet as at 30 June 2020
Note 2020 2019 $'000 $'000 Current Assets Cash and cash Equivalents 6.2 6,526 9,631 Receivables 5.1 3,416 2,469 Inventories 273 301 Other financial assets 4.1 11,725 11,262 Other Assets 636 509 Total Current Assets 22,576 24,172
Non-Current Assets Receivables 5.1 1,086 1,106 Property, plant and equipment 4.2 (a) 83,804 84,161 Total Non-Current Assets 84,890 85,267 TOTAL ASSETS 107,466 109,439
Current Liabilities Payables 5.2 7,499 8,785 Borrowings 6.1 2,006 683 Provisions 3.3 17,823 15,919 Other liabilities 5.3 10,266 9,771 Total Current Liabilities 37,594 35,158
Non-Current Liabilities Borrowings 6.1 1,409 1,702 Provisions 3.3 3,591 3,342 Total Non-Current Liabilities 5,000 5,044 TOTAL LIABILITIES 42,594 40,202 NET ASSETS 64,872 69,238
EQUITY Property, plant and equipment revaluation surplus 4.2(f) 56,710 56,710 Contributed capital 32,579 32,522 Accumulated deficits (24,417) (19,994) TOTAL EQUITY 64,872 69,238
This Statement should be read in conjunction with the accompanying notes.
West Gippsland Healthcare Group Annual Report 2019-20 63 Statement of Changes in Equity 30 June 2020
West Gippsland Healthcare Group Statement of Changes in Equity For the Financial Year Ended 30 June 2020
Property, Plant Contributed Accumulated Total and Equipment Capital Deficits Revaluation Surplus
Note $'000 $'000 $'000 $'000 Balance at 1 July 2018 53,651 32,522 (13,769) 72,404 Net result for the year - - (6,225) (6,225) Other comprehensive income for the year 4.2 (f) 3,059 - - 3,059 Balance at 30 June 2019 56,710 32,522 (19,994) 69,238 Net result for the year - - (4,423) (4,423) Contributed capital - 57 - 57 Balance at 30 June 2020 56,710 32,579 (24,417) 64,872
This Statement should be read in conjunction with the accompanying notes.
64 West Gippsland Healthcare Group Annual Report 2019-20 Cash Flow Statements 30 June 2020
West Gippsland Healthcare Group Cash Flow Statement For the Financial Year Ended 30 June 2020
Note 2020 2019 $'000 $'000 Cash Flows from Operating Activities Operating grants from government 96,741 90,542 Capital grants from government 4,107 3,893 Patient fees received 2,259 3,583 Private practice fees received 700 765 GST received from ATO 3,666 3,601 Interest and investment income received 293 570 Other Receipts 18,728 18,796 Total Receipts 126,494 121,750
Employee expenses paid (85,737) (81,437) Payments for supplies and consumables (23,661) (23,902) Payments for medical indemnity insurance (2,063) (1,915) Payments for repairs and Maintenance (2,209) (1,888) Finance Costs (32) (77) GST paid to ATO (1,736) (1,879) Cash Outflow for Leases (218) (169) Payment for share of rural health alliance (1,160) (1,159) Other payments (7,671) (6,820) Total Payments (124,486) (119,246) Net Cash Flows from Operating Activities 8.1 2,008 2,504
Cash Flows from Investing Activities Purchase of non-financial assets (6,999) (10,876) Capital Donations and Bequests Received 1,071 1,255 Proceeds from disposal of non-financial assets 157 182 Net Cash Flows used in Investing Activities (5,771) (9,439)
Cash Flows from Financing Activities Receipt of Borrowings 1,230 - Repayment of borrowings (629) (428) Receipt of capital contribution 57 - Net Cash Flows used in Financing Activities 658 (428)
Net Decrease in Cash and Cash Equivalents Held (3,105) (7,363)
Cash and cash equivalents at beginning of year 9,631 16,994 Cash and Cash Equivalents at End of Year 6.2 6,526 9,631
This Statement should be read in conjunction with the accompanying notes.
West Gippsland Healthcare Group Annual Report 2019-20 65 Notes to the financial statementsNotes to the Financial30 June Statements 2020 West Gippsland Healthcare Group 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 West Gippsland Healthcare Group and its controlled entities for the year ended 30 June 2020. The report provides users with information about West Gippsland Healthcare Group’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.
West Gippsland Healthcare Group 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 West Gippsland Healthcare Group. Its principal address is: 41 Landsborough Street Warragul, Victoria 3820
A description of the nature of West Gippsland Healthcare Group’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 8.8 Economic Dependency). These financial statements are presented in Australian dollars, the functional and presentation currency of West Gippsland Healthcare Group.
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.
West Gippsland Healthcare Group operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. The West Gippsland Healthcare Group Capital and Specific Purpose Funds include unspent donations and receipts from fund-raising activities conducted solely in respect of these 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.
66 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements otes30 to theJune inancial 2020 tatements West Gippsland Healthcare Group for the financial ear ended une
Note 1: Summary of Significant Accounting Policies ud ements estimates and assumptions are re uired to be made about the carr in alues of assets and liabilities that are not readil apparent from other sources. he estimates and underl in assumptions are re iewed on an on oin basis. he estimates and associated assumptions are based on professional ud ements deri ed from historical e perience and arious other factors that are belie ed to be reasonable under the circumstances. ctual results ma differ from these estimates.
e isions to accountin estimates are reco nised in the period in which the estimate is re ised and in future periods that are affected b the re ision. ud ements and assumptions made b mana ement in the application of s that ha e si nificant effects on the financial statements and estimates relate to • he fair alue of land buildin s and plant and e uipment refer to ote . ropert lant and uipment and • mplo ee benefit pro isions are based on li el tenure of e istin staff patterns of lea e claims future salar mo ements and future discount rates refer to ote . mplo ee enefits in the alance heet .
state of emer enc was declared in ictoria on arch due to the lobal corona irus pandemic nown as . state of disaster was subse uentl declared on u ust . o contain the spread of the irus and to prioritise the health and safet of our communities arious restrictions ha e been announced and implemented b the state o ernment which in turn has impacted the manner in which businesses operate includin West Gippsland Healthcare Group. n response West Gippsland Healthcare Group placed restrictions on non essential isitors implemented reduced isitor hours deferred electi e sur er and reduced acti it performed testin and implemented wor from home arran ements where appropriate. or further details refer to ote . ncome from transactions ote . penses from transactions and ote . ropert plant and e uipment.
Goods and Services Tax (GST) ncome e penses and assets are reco nised net of the amount of associated G unless the G incurred is not reco erable from the ustralian a ation ffice . n this case the G pa able is reco nised as part of the cost of ac uisition of the asset or as part of the e pense. ecei ables and pa ables are stated inclusi e of the amount of G recei able or pa able. he net amount of G reco erable from or pa able to the is included with other recei ables or pa ables in the alance heet. ash flows are presented on a ross basis. he G components of cash flows arisin from in estin or financin acti ities which are reco erable from or pa able to the are presented separatel in the operatin cash flow. ommitments and contin ent assets and liabilities are presented on a ross basis.
(d) Jointly Controlled Operation oint control is the contractuall a reed sharin of control of an arran ement which e ists onl when decisions about the rele ant acti ities re uire the unanimous consent of the parties sharin control. n respect of an interest in oint operations West Gippsland Healthcare Group reco nises 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. West Gippsland Healthcare Group is a member of the Gippsland Health lliance and retains oint control o er the arran ement which it has classified as a oint operation refer to ote . ointl ontrolled perations
Intersegment Transactions ransactions between se ments within West Gippsland Healthcare Group ha e been eliminated to reflect the e tent of West Gippsland Healthcare Group s operations as a roup.
(e) Equity Contributed Capital onsistent with the re uirements of Contributions contributions b owners that is contributed capital and its repa ment are treated as e uit transactions and therefore do not form part of the income and e penses of the West Gippsland Healthcare Group.
West Gippsland Healthcare Group Annual Report 2019-20 67 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial year ended une
Note 1: Summary of Significant Accounting Policies ransfers of net assets arising from administrative restructurings are treated as distributions to or contributions by o ners. ransfers of net liabilities arising from administrative restructurings are treated as distributions to o ners. ther transfers that are in the nature of contributions or distributions or that have been designated as contributed capital are also treated as contributed capital.
Specific Restricted Purpose Surplus he pecific estricted urpose urplus is established here est ippsland ealthcare roup has possession or title to the funds but has no discretion to amend or vary the restriction and or condition underlying the funds received.
68 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial year ended une
Note 2: Funding delivery of our services
est ippsland eatlhcare roup is committed to the provision of high uality, integrated health care that meets the changing needs of individuals and our community. est ippsland eatlhcare roup is predominantly funded by accrual based grant funding for the provision of outputs. est ippsland ealthcare roup also receives income from the supply of services.
Structure . ncome from ransactions
West Gippsland Healthcare Group Annual Report 2019-20 69 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 2.1 (a): Income from Transactions
Total Total 2020 2019 Notes $'000 $'000
2 Government grants (State) - Operating 89 ,360 78,750 Government grants (Commonwealth) - Operating 9,046 11,264 Government grants (State) - Capital 4,107 3,364 Government grants (Commonwealth) - Capital - 529 Other capital purpose income 1,071 1,255 Patient and resident fees 3,361 3,407 Private practice fees 22 26 Commercial activities 1 13 ,667 13,961 Assets received free of charge or for nominal consideration 2.1(b) 100 - Other revenue from operating activities (including non-capital donations) 4,989 4,978 Total Income from Operating Activities 125,723 117,534
Other interest 293 568 Total Income from Non-Operating Activities 293 568 Total Income from Transactions 126,016 118,102
1. Commercial activities represent business activities which health service enter into to support their operations.
2. Government Grant (State) – Operating includes funding of $1.35m which was spent due to the impacts of COVID- 19.
Impact of COVID-19 on revenue and income As indicated at Note 1, the West Gippsland Healthcare Group response to the pandemic included the deferral of elective surgeries and reduced activity. This resulted in West Gippsland Healthcare Group incurring lost revenue as well as direct and indirect COVID-19 costs. The Department of Health and Human Services provided funding which was spent due to COVID-19 impacts on the West Gippsland Healthcare Group. The West Gippsland Healthcare Group also received essential personal protective equipment free of charge under the state supply arrangement. Government Grants Income from grants to construct the eight bed Short Stay Unit and third Operating Theatre Projects under Round 1 Regional Health Infrastructure (RHIF) is recognised progressively as the asset is constructed. 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 West Gippsland Healthcare Group has an unconditional right to receive the cash which usually coincides with receipt of cash. On initial recognition of the asset, the West Gippsland Healthcare Group 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.
70 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial year ended une
Note 2.1: Income from Transactions (cont'd) Performance obligations
he types of government grants recognised under evenue from ontracts ith ustomers includes • Activity Based Funding (ABF) most notably paid as Weighted Inlier Equivalent Speration (WIES) casemix grant. • apital project grants. revenue is recognised hen performance milestones are achieved in accordance ith the unding obligations and payment schedule. • other one-off grants if funding conditions contain enforceable and sufficiently specific performance obligations. he performance obligations for are the number and mix of patients admitted to hospital casemix in accordance ith levels of activity agreed to ith the epartment of ealth and uman ervices in the annual tatement of riorities o . evenue is recognised hen a patient is discharged and in accordance ith the activity for each separation. he performance obligations have been selected as they align ith funding conditions set out in the olicy and funding guidelines issued by the . or other grants ith performance obligations the est ippsland ealthcare roup exercises judgement over hether the performance obligations have been met, on a grant by grant basis.
Previous accounting policy for 30 June 2019 rant income arises from transactions in hich a party provides goods or assets or extinguishes a liability to est ippsland ealthcare roup ithout receiving approximately e ual value in return. hile 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 e ual value and are termed ‘non-reciprocal’ transfers . eceipt and sacrifice of approximately e ual value may occur, but only by coincidence. ome grants are reciprocal in nature i.e. e ual value is given bac by the recipient of the grant to the provider . est ippsland ealthcare roup recognises income hen it has satisfied its performance obligations under the terms of the grant.
or non reciprocal grants, est ippsland ealthcare roup recognises revenue hen the grant is received. rants can be received as general purpose grants, hich refers to grants hich are not subject to conditions regarding their use. lternatively, they may be received as specific purpose grants, hich are paid for a particular purpose and or have conditions attached regarding their use. Patient and Resident Fees he performance obligations related to patient fees are satisfied as the services are rendered. hese performance obligations have been selected as they align ith the terms and conditions of the providing services. evenue is recognised as these performance obligations are met. esident fees are recognised as revenue over time as est ippsland ealthcare roup provides accommodation. his is calculated on a daily basis and invoiced monthly. Private Practice Fees he performance obligations related to private practice fees are satisfied as the services are rendered. hese performance obligations have been selected as they align ith the terms and conditions agreed ith the private provider. evenue is recognised as these performance obligations are me . rivate practice fees include recoupments from the private practice for the use of hospital facilities. Commercial activities erformance obligations related to commercial activities include the ashing and distribution of linen products. hese obligations are met hen the customers orders are ready for distribution from our arehouse. hese performance obligations have been selected as they align ith the terms and conditions per the contract ith the provider of the commercial activities. evenue from commercial activities includes items such as; aundry, afeteria and roperty letting.
West Gippsland Healthcare Group Annual Report 2019-20 71 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
2.1 (b) Fair value of assets and services received free of charge or for nominal consideration
2020 2019 (If required please refer to the DTF Model. $'000 $'000
Cash donations and gifts 1,158 1,336 Assets Received Free of Charge Under State Supply Arrangements 100 - Total fair value of assets and services received free of charge or for nominal consideration 1,258 1,336
Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the recipient obtains control over the resources, irrespective of whether restrictions or conditions are imposed over the use of the contributions. The exception to this would be when the resource is received from another government department (or agency) as a consequence of a restructuring of administrative arrangements, in which case such a transfer will be recognised at its carrying value in the transferring department or agency as a capital contribution transfer. Voluntary Services Contributions in the form of services are only recognised when a fair value can be reliably determined, and the services would have been purchased if not donated. West Gippsland Healthcare Group did not receive any volunteer services and does not depend on volunteers to deliver its services. 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.
72 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
2.1 (b) Fair value of assets and services received free of charge or for nominal consideration (cont'd)
Performance obligations and revenue recognition policies
•
• •
West Gippsland Healthcare Group Annual Report 2019-20 73 Notes to the financial statements 30 June 2020
Note 3: The cost of delivering our services
Structure
74 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 3.1: Expenses from Transactions
Total Total 2020 2019 $'000 $'000
Salaries and wages 71,313 65,856 On-costs 15,579 15,572 Agency expenses 4,624 3,479 Fee for service medical officer expenses 3,116 3,405 Workcover premium 1,628 1,782 Total Employee Expenses 96,260 90,094 Drug supplies 1,151 3,388 Medical and surgical supplies (including Prostheses) 3,353 3,106 Diagnostic and radiology supplies 4,286 3,629 Other supplies and consumables 4,971 4,774 Total Supplies and Consumables 13,761 14,897 Finance costs 9 1 81 Total Finance Costs 91 81 Other administrative expenses 6,676 6,506 Total Other Administrative Expenses 6,676 6,506 Fuel, light, power and water 2,093 1,949 Repairs and maintenance 1,192 1,180 Maintenance contracts 367 354 Medical indemnity insurance 2,059 1,915 Expenses related to leases of low value assets 153 - Expenditure for capital purposes 507 353 Total Other Operating Expenses 6,371 5,751 Total Operating Expense 123,159 117,329 Depreciation and amortisation (refer Note 4.3) 7,199 7,097 Total Depreciation and Amortisation 7,199 7,097 Bad and doubtful debt expense 8 9 89 Total Other Non-Operating Expenses 89 89 Total Non-Operating Expense 7,288 7,186 Total Expenses from Transactions 130,447 124,515
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Impact of COVID-19 on expenses
As indicated at - direct staffing costs in treating suspect and actual COVID patients, including the setup testing clinics and screening measures at external entrances for staff and visitors. - leave costs for staff that were required to quarantine and self-isolate in accordance with workforce return to work criteria and directives issued by the DHHS. - minor works to the physical layout of wards to create separate zones to manage infection control risks between suspect COVID and non-COVID patients. - maintenance and stability payments to eligible staff and commercial tenancy rent relief measures as directed under the State Government’s Economic Survival and Jobs Package - increased use of personal protective clothing (PPE) consumables and associated clinical waste costs 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.
West Gippsland Healthcare Group Annual Report 2019-20 75 Notes to the financial statements 30 June 2020
Note 3.1: Expenses from Transactions (cont'd)
Finance costs
• • 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 • Fuel, light and power • Repairs and maintenance • Other administrative expenses • Non-operating expenses Operating lease payments • Short-term leases – leases with a term less than 12 months; and • – asset’s
76 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the Financial Statements est ippsland ealthcare roup for the financial year ended une 2 2
Note 3.2: Analysis of Expenses and Revenue by Internally Managed and Restricted Specific Purpose Funds
Expense Revenue
2020 2019 2020 2019 $'000 $'000 $'000 $'000 Commercial Activities rivate practice and other patient sctivities 21 2 6 Laundry 11,11 11,12 11, 6 12,2 afeteria 12 11 1 roperty 2 1 6 1 Other include any activity not stated above 1 1 TOTAL 12,644 12,626 13,667 13,961
West Gippsland Healthcare Group Annual Report 2019-20 77 Notes to the financial statements 30 June 2020
otes to the Financial Statements est ippsland ealthcare roup for the financial year ended une 2 2
Note 3.3: Employee Benefits in the Balance Sheet
2020 2019 $'000 $'000
CURRENT PROVISIONS mployee Benefits i Accrued days off
- unconditional and expected to be settled wholly within 12 months ii 1 6 16
Annual leave - unconditional and expected to be settled wholly within 12 months ii 6, , 2 - unconditional and expected to be settled wholly after 12 months iii 1,
Long service leave - unconditional and expected to be settled wholly within 12 months ii 1,122 1,1
- unconditional and expected to be settled wholly after 12 months iii , 2 6, 16,040 14,326
Provisions related to Employee Benefit On-Costs nconditional and expected to be settled within 12 months ii 2 nconditional and expected to be settled after 12 months iii 6 1,783 1,593
TOTAL CURRENT PROVISIONS 17,823 15,919
NON-CURRENT PROVISIONS onditional long service leave ,22 , rovisions related to employee benefit on-costs 6 TOTAL NON-CURRENT PROVISIONS 3,591 3,342
TOTAL PROVISIONS 21,414 19,261 i mployee benefits consist of amounts for accrued days off, annual leave and long service leave accrued by employees, not including on-costs. ii he amounts disclosed are nominal amounts. iii he amounts disclosed are discounted to present values.
(a) Employee Benefits and Related On-Costs
2020 2019 Current Employee Benefits and Related On-Costs $'000 $'000 nconditional long service leave entitlements , 2 , 1 Annual leave entitlements ,21 6, Accrued days off 1 6 16 Total Current Employee Benefits and Related On-Costs 17,823 15,919 Non-Current Employee Benefits and Related On-Costs onditional long service leave entitlements , 1 , 2 Total Non-Current Employee Benefits and Related On-Costs 3,591 3,342 TOTAL EMPLOYEE BENEFITS AND RELATED ON-COSTS 21,414 19,261
Other Total $'000 $'000
Carrying amount at start of year 1 ,261 1 ,261 Additional provisions recognised , 6 , 6 Amount aid uring the year 6,61 6,61 Carrying amount at end of year 21,414 21,414
78 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the Financial Statements est ippsland ealthcare roup for the financial year ended une 2 2
Note 3.3: Employee Benefits in the Balance Sheet (cont'd)
(b) Movement in On-Costs Provision
2020 2019 $'000 $'000 Balance at start of year 1,931 1,747 Additional provisions recognised nwinding of discount and effect of changes in the discount rate Reduction due to transfer out 61 62 Balance at end of year 2,146 1,931
Employee Benefit Recognition rovision 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 rovisions are recognised when est ippsland ealthcare roup has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. he amount recognised as a liability is the best estimate of the consideration re uired to settle the present obligation at reporting date, ta ing into account the ris s 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 est ippsland ealthcare roup does not have an unconditional right to defer settlements of these liabilities.
epending on the expectation of the timing of settlement, liabilities for annual leave and accrued days off are measured at Nominal value – if West Gippsland Healthcare Group expects to wholly settle within 12 months; or Present value – if West Gippsland Healthcare Group does not expect to wholly settle within 12 months. Long Service Leave he liability for long service leave LSL is recognised in the provision for employee benefits. nconditional LSL is disclosed in the notes to the financial statements as a current liability even where the est ippsland ealthcare roup 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 ta e leave within 12 months. An unconditional right arises after a ualifying period.
he components of this current LSL liability are measured at • Nominal value – if West Gippsland Healthcare Group expects to wholly settle within 12 months; or • Present value – if West Gippsland Healthcare Group does not expect to wholly settle within 12 months.
onditional 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.
Termination Benefits ermination 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 rovision for on-costs such as wor ers compensation and superannuation are recognised separately from provisions for employee benefits.
West Gippsland Healthcare Group Annual Report 2019-20 79 Notes to the financial statements 30 June 2020
Notes to the inancial tatements West Gippsland Healthcare Group for the financial year ended une 2 2
Note 3.4: Superannuation
Paid Contribution for the Contribution Outstanding Year at Year End
2020 2019 2020 2019 $'000 $'000 $'000 $'000 Defined Benefit Plans:i irst tate uper 11 Defined Contribution Plans: irst tate uper 2 1 1 1 ther 2 2 2 1 1 1 Total 6,444 6,223 536 329
i he asis for determinin the level of contri utions is determined y the various actuaries of the defined enefit superannuation plans.
mployees of West Gippsland Healthcare Group are entitled to receive superannuation enefits and it contri utes to oth defined enefit an defined contri ution plans. he defined enefit plan provides enefits ased on years of service and final avera e salary. Defined Benefit Superannuation Plans he amount char ed to the omprehensive peratin tatement in respect of defined enefit superannuation plans represents the contri utions made y West Gippsland Healthcare Group to the superannuation plans in respect of the services of current West Gippsland Healthcare Group’s staff during the reporting period. uperannuation contri utions are made to the plans ased on the relevant rules of each plan and are ased upon actuarial advice. West Gippsland Healthcare Group does not reco nise any unfunded defined enefit lia ility in respect of the plans ecause the health service has no le al or constructive o li ation to pay future enefits relatin to its employees; its only o li ation is to pay superannuation contri utions as they fall due. he epartment of reasury and inance discloses the State’s defined benefits liabilities in its disclosure for administered items. However superannuation contri utions paid or paya le for the reportin period are included as part of employee enefits in the omprehensive peratin tatement of West Gippsland Healthcare Group. he name details and amounts that have een expensed in relation to the ma or employee superannuation funds and contri utions made y West Gippsland Healthcare Group are disclosed a ove. Defined Contribution Superannuation Plans
n relation to defined contri ution i.e. accumulation superannuation plans the associated expense is simply the employer contri utions that are paid or paya le in respect of employees who are mem ers of these plans durin the reportin period. ontri utions to defined contri ution superannuation plans are expensed when incurred.
80 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial Statements West Gippsland Healthcare Group for the financial ear ended une
Note 4: Key Assets to Support Service Delivery
West Gippsland Healthcare Group controls infrastructure and other investments that are utilised in fulfilling its ob ectives and conducting its activities. he represent the e resources that have been entrusted to West Gippsland Healthcare Group to be utilised for deliver of those outputs.
Structure . nvestments and other financial assets . ropert plant e uipment . epreciation and amortisation
West Gippsland Healthcare Group Annual Report 2019-20 81 Notes to the financial statements 30 June 2020
otes to the inancial Statements West Gippsland Healthcare Group for the financial ear ended une
Note 4.1: Other Financial Assets
Operating Fund Specific Purpose Fund Consolidated 2020 2019 2020 2019 2020 2019 $'000 $'000 $'000 $'000 $'000 $'000 CURRENT entral an ing S stem erm deposits months ther Salar ac aging TOTAL CURRENT 1,500 1,500 10,225 9,762 11,725 11,262 TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 1,500 1,500 10,225 9,762 11,725 11,262 Represented by: Health service investments ccommodation onds Salar ac aging
TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 1,500 1,500 10,225 9,762 11,725 11,262
Investment Recognition nvestments are recognised and derecognised on trade date here purchase or sale of an investment is under a contract hose terms re uire deliver of the investment ithin the timeframe established b the mar et concerned and are initiall measured at fair value net of transaction costs. he West Gippsland Healthcare Group classifies its other financial assets bet een current and non current assets based on the Board’s intention at balance date ith respect to the timing of disposal of each asset. West Gippsland Healthcare Group assesses at each balance sheet date hether a financial asset or group of financial assets is impaired. West Gippsland Healthcare Group s investments must compl ith Standing irection . . reasur anagement including entral an ing S stem. West Gippsland Healthcare Group s controlled entities manage their investments in accordance ith their o n investment polic as approved b their oard and their investments are consolidated into West Gippsland Healthcare Group for reporting purposes as it is the ultimate beneficiar of West Gippsland Healthcare Group. ll financial assets e cept for those measured at fair value through the omprehensive perating Statement are sub ect to annual revie for impairment. Derecognition of Financial Assets
financial asset or here applicable a part of a financial asset or part of a group of similar financial assets is derecognised hen • The rights to receive cash flows from the asset have expired; or • West Gippsland Healthcare Group retains the right to receive cash flo s from the asset but has assumed an obligation to pa them in full without material delay to a third party under a ‘pass through’ arrangement; or • West Gippsland Healthcare Group 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 West Gippsland Healthcare Group has neither transferred nor retained substantiall all the ris s and re ards or transferred control, the asset is recognised to the extent of West Gippsland Healthcare Group’s continuing involvement in the asset. Impairment of Financial Assets t the end of each reporting period West Gippsland Healthcare Group assesses hether there is ob ective evidence that a financial asset or group of financial assets is impaired. ll financial instrument assets e cept those measured at fair value through the omprehensive ncome Statement are sub ect to annual revie for impairment. n order to determine an appropriate fair value as at une for its portfolio of financial assets West Gippsland Healthcare Group and its controlled entities used the mar et value of investments held provided b the portfolio managers.
he above valuation process as used to uantif the level of impairment if an on the portfolio of financial assets as at ear end.
82 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group for the financial year ended une Note 4.2: Property, Plant and Equipment
Initial Recognition tems of property, plant and e uipment are measured initially at cost and subse uently revalued at fair value less accumulated depreciation and impairment loss. Where an asset is ac uired for no or nominal cost, the cost is its fair value at the date of ac uisition. ssets 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 pro ect 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 ote . is measured at amounts e ual 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. and and buildings are recognised initially at cost and subse uently 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 West Gippsland Healthcare Group 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 ad usted 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 roperty, plant and e uipment as well as right of use assets under leases and service concession assets are subse uently measured at fair value less accumulated depreciation and impairment. air 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 West Gippsland Healthcare Group 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 e uipment, other than where the lease term is lower than the otherwise assigned useful life. The right of use assets are also sub ect to revaluation as re uired by pending however as at une right of use assets have not been revalued. n addition, the right of use asset is periodically reduced by impairment losses, if any and ad usted for certain remeasurements of the lease liability. Revaluations of Non-Current Physical Assets on current physical assets are measured at fair value and are revalued in accordance with H Non- financial Physical Assets . This revaluation process normally occurs every five years, based upon the asset s Government urpose lassification, but may occur more fre uently if fair value assessments indicate material changes in values. ndependent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the re uirements of the s. evaluation increments or decrements arise from differences between an asset’s carrying value and fair value.
West Gippsland Healthcare Group Annual Report 2019-20 83 30 June 2020 Notes to the financial statements otes to t e inancial tatements est i sland ealt care rou for t e financial year ended une ote ro ert ant an qui ment ont
evaluation increments are recognised in ‘Other om re ensive Income’ and are credited directly to t e asset revaluation sur lus e ce t t at to t e e tent t at an increment reverses a revaluation decrement in res ect of t at same class of asset reviously recognised as an e ense in net result t e increment is recognised as income in t e net result. evaluation decrements are recognised in ‘Other om re ensive Income’ to t e e tent t at a credit balance e ists in t e asset revaluation sur lus in res ect of t e same class of ro erty lant and e ui ment.
evaluation increases and revaluation decreases relating to individual assets wit in an asset class are offset against one anot er wit in t at class but are not offset in res ect of assets in different classes. evaluation sur lus is not transferred to accumulated funds on de recognition of t e relevant asset e ce t w ere an asset is transferred via contributed ca ital. n accordance wit on financial ysical assets est i sland ealt care rou s non current ysical assets were assessed to determine w et er revaluation of t e non current ysical assets was re uired. air a ue measurement
air value is t e rice t at would be received to sell an asset or aid to transfer a liability in an orderly transaction between mar et artici ants at t e measurement date. or t e ur ose of fair value disclosures est i sland ealt care rou as determined classes of assets on t e basis of t e nature c aracteristics and ris s of t e asset and t e level of t e fair value ierarc y as e lained above. n addition est i sland ealt care rou determines w et er transfers ave occurred between levels in t e ierarc y by reassessing categorisation based on t e lowest level in ut t at is significant to t e fair value measurement as a w ole at t e end of eac re orting eriod. The Valuer-General Victoria (VGV) is West Gippsland Healthcare Group’s independent valuation agency. e estimates and underlying assum tions are reviewed on an ongoing basis. a uation hierar h n determining fair values a number of in uts are used. o increase consistency and com arability in t e financial statements t ese in uts are categorised into t ree levels also nown as t e fair value ierarc y. e levels are as follows • Level 1 – quoted (unadjusted) market prices in active markets for identical assets or liabilities; • evel – valuation tec ni ues for w ic t e lowest level in ut t at is significant to t e fair value measurement is directly or indirectly observable and • evel – valuation tec ni ues for w ic t e lowest level in ut t at is significant to t e fair value measurement is unobservable. entif ing unobser ab e in uts e e fair a ue measurements evel fair value in uts are unobservable valuation in uts for an asset or liability. ese in uts re uire significant udgement and assum tions in deriving fair value for bot financial and non financial assets. nobservable in uts are used to measure fair value to t e e tent t at relevant observable in uts are not available t ereby allowing for situations in w ic t ere is little if any mar et activity for t e asset or liability at t e measurement date. owever t e fair value measurement ob ective remains t e same i.e. an e it rice at t e measurement date from t e ers ective of a mar et artici ant t at olds t e asset or owes t e liability. erefore unobservable in uts s all reflect t e assum tions t at mar et artici ants would use w en ricing t e asset or liability including assum tions about ris . onsi eration of highest an best use for non-finan ia h si a assets udgements about ig est and best use must ta e into account t e c aracteristics of t e assets concerned including restrictions on t e use and dis osal of assets arising from t e asset’s ysical nature and any a licable legislative contractual arrangements. n accordance wit air alue easurement aragra est i sland ealt care rou as assumed t e current use of a non financial ysical asset is its unless mar et or ot er factors suggest t at a different use by mar et artici ants would ma imise t e value of t e asset.
84 West Gippsland Healthcare Group Annual Report 2019-20 30 June 2020 Notes to the financial statements otes to the inancial tatements West Gippsland Healthcare Group for the financial year ended une ote ro ert ant an qui ment ont
on-S e ia ise an on-S e ia ise ui ings an u tura ssets on-specialised land non-specialised buildings and cultural assets are valued using the market approach. nder this valuation method the assets are compared to recent comparable sales or sales of comparable assets hich are considered to have nominal or no added improvement value. or non-specialised land and non-specialised buildings an independent valuation as performed by the Valuer-General Victoria to determine the fair value using the market approach. Valuation of the assets as determined by analysing comparable sales and allo ing for share si e topography location and other relevant factors specific to the asset being valued. n appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is une . S e ia ise an an S e ia ise ui ings pecialised land includes ro n Land hich is measured at fair value ith 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 ill no longer apply. Therefore unless other ise disclosed the current use of these non-financial physical assets ill be their highest and best use. uring the reporting period West Gippsland Healthcare Group held ro n 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 ( O) to reflect the specialised nature of the assets being valued. pecialised assets contain significant unobservable adjustments; therefore these assets are classified as Level under the market based direct comparison approach.
The O adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated ith an asset to the e tent 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. s adjustments of O are considered as significant unobservable inputs specialised land ould be classified as Level assets.
or West Gippsland Healthcare Group the depreciated replacement cost method is used for the majority of specialised buildings adjusting for the associated depreciation. s depreciation adjustments are considered as significant and unobservable inputs in nature specialised buildings are classified as Level for fair value measurements. n independent valuation of West Gippsland Healthcare Group’s specialised land and specialised buildings as performed by the Valuer-General Victoria. The valuation as performed using the market approach adjusted for O. The effective date of the valuation is une 1 . ehi es
The West Gippsland Healthcare Group acquires ne 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 ervice ho set relevant depreciation rates during use to reflect the consumption of the vehicles. s a result the fair value of vehicles does not differ materially from the carrying amount (depreciated cost).
ant an qui ment lant 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. nless there is market evidence that current replacement costs are significantly different from the original acquisition cost it is considered unlikely that depreciated replacement cost ill be materially different from the e isting carrying amount. There ere no changes in valuation techniques throughout the period to une . or all assets measured at fair value the current use is considered the highest and best use.
West Gippsland Healthcare Group Annual Report 2019-20 85 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 4.2: Property, Plant and Equipment
(a) Gross carrying amount and accumulated depreciation
2020 2019 $'000 $'000 Land - Freehold 10,443 10,443 TOTAL LAND AT FAIR VALUE 10,443 10,443
Buildings at cost 8,672 - Less accumulated depreciation (189) - Sub-totals Buildings at Cost 8,483 -
Buildings at fair value 48,500 48,500 Less accumulated depreciation (4,070) - Sub-totals Buildings at Fair Value 44,430 48,500 TOTAL BUILDINGS 52,913 48,500
Plant and equipment at fair value 21,740 19,041 Less accumulated depreciation (8,523) (7,888) Sub-totals Plant and equipment at Fair Value 13,217 11,153
GHA - Written down value 114 11 TOTAL PLANT AND EQUIPMENT 13,332 11,164
Motor vehicles at fair value 1,867 1,972 Less accumulated depreciation (1,127) (1,096) TOTAL MOTOR VEHICLES 740 876
Medical equipment at fair value 11,343 10,173 Less accumulated depreciation (6,745) (6,228) TOTAL MEDICAL EQUIPMENT 4,598 3,945
Computers and communication equipment at fair value 389 463 Less accumulated depreciation (320) (368) TOTAL COMPUTERS AND COMMUNICATION EQUIPMENT 69 95
Furniture and fittings at fair value 618 566 Less accumulated depreciation (364) (334) TOTAL FURNITURE AND FITTINGS 254 232
Right of use vehicles 740 - Less accumulated depreciation (116) - TOTAL RIGHT OF USE VEHICLES 624 -
Leased vehicles - 318 Less accumulated depreciation - (24) TOTAL LEASED VEHICLES - 294
OTHER ASSETS UNDER CONSTRUCTION AT COST 831 8,612
TOTAL PROPERTY, PLANT AND EQUIPMENT 83,804 84,161
86 West Gippsland Healthcare Group Annual Report 2019-20 otes to t e a al tate e ts est G ppsla ealt are Group or t e a al year e e u e West Gippsland Healthcare Group Notes tothe financialstatements ote ro ert ant an qui ment ontinue
b Re on i iations of the arr ing amounts of ea h ass of asset
om uters Right of ant otor e i a ommuni ation urniture use - ease ssets un er onso i ate ote an ui ings equi ment ehi es qui ment qui ment ittings ssets onstru tion ota a an e at u - - t o s sposals evaluat o re e ts e re e ts et ra s ers et ee lasses epre at o a an e at une a - e o t o o r t o use assets o t al appl at o o uste ba an e at u - t o s sposals pa r e t losses re o se et esult et ra s ers et ee lasses epre at o a an e at une a -
an an ui ings an ease ssets arrie at a uation
ull revaluat o o t e est G ppsla ealt are Group la a u l s as per or e y t e aluer Ge eral o tor a G ay a or a e t t e re u re e ts o a al eport re t o o a al ys al ssets e valuat o o or s to ustral a aluat o ta ar s as eter e y re ere e to t e a ou ts or assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. The effective date of the valuation for both land and buildings was 30 June 2019.
o pl a e t t e year e e u e est G ppsla ealt are Group s a a e e t o u te a a ual assess e t o t e a r value o la a u l s a lease u l s o a l tate t s a a e e t o ta e ro t e epart e t o reasury a a e t e aluer Ge eral tor a es or t e a al year e e u e
Annual 2019-20 Report e G es are ase o ata to ar ate a avera e sele t rease o a ross all la par els a a rease u l s a a e e t re ar s t e G es to e a rel a le a releva t ata set to or t e as s o t e r est ates lst t ese es are appl a le at u e t e a r value o la a u l s ll o t ue to e su e te to t e pa ts o uture a ou t per o s e la a u l ala es are o s ere to e se s t ve to ar et o t o s o tr er a a a er al revaluat o a e rease t e la e o a a e rease t e u l e o oul e re u re 30 June2020 87 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial ear ended 30 June 2020
ote ro ert ant an qui ment ontinue air a ue measurement hierar h for assets
air a ue measurement at en of re orting erio using arr ing ote mount e e i e e i e e i a an e at une on specialised land pecialised land 3 3 ota an at air a ue .2 a -
on specialised buildings 3 29 3 29 pecialised buildings 9 0 9 0 ota ui ing at air a ue .2 a -
lant and e uipment at fair value .2 a 13 332 13 332 otor vehicles at fair value .2 a 0 0 edical e uipment at air alue .2 a 9 9 omputers and communication e uipment at fair value .2 a 9 9 urniture and fittings at fair value .2 a 2 2 ight of use furniture fittings and vehicles .2 a 2 2 ssets nder onstuction .2 a 31 31 ota ther ant an qui ment at air a ue - ota ro ert ant an qui ment -
air a ue measurement at en of re orting erio using arr ing mount e e i e e i e e i a an e at une on specialised land pecialised land 3 3 ota an at air a ue .2 a -
on specialised buildings 3 29 - 3 29 - pecialised buildings 1 1 ota ui ing at air a ue .2 a -
lant and e uipment at fair value .2 a 11 1 11 1 otor vehicles at fair value .2 a edical e uipment at air alue .2 a 3 9 3 9 omputers and communication e uipment at fair value .2 a 9 9 urniture and fittings at fair value .2 a 232 232 ther eased ssets .2 a 29 29 ssets nder onstruction .2 a 12 12 ota other ant an equi ment at fair a ue - ota ro ert ant an qui ment - i lassified in accordance with the fair value hierarch .
ii There have been no transfers between levels during the period. n the prior ear there is a transfer between non specialised land and specialised land to reflect the correct fair value as per the managerial revaluation in 2019.
88 West Gippsland Healthcare Group Annual Report 2019-20 otes to the inancial tatements est ippsland ealthcare roup for the financial ear ended 30 June 2020 West Gippsland Healthcare Group Notes tothe financialstatements
ote ro ert ant an qui ment ontinue Re on i iation of e e air a ue i
om uters ant otor e i a omm urniture Right of an ui ings qui ment ehi es qui ment qui ment ittings se ssets onso i ate a an e at u - dditions isposals 11 1 22 232 22 2 31 et Transfers between classes 3 1 13 ains osses recognised in net result epreciation and amortisation 3 9 1 1 20 19 2 2 tems recognised in other comprehensive income evaluation 1 10 1 a an e at une dditions isposals 2 2 33 22 1 33 30 2 22 et Transfers between classes 0 1 1 ains osses recognised in net result epreciation and mortisation 2 9 1 919 1 9 30 92 mpairment loss - - 12 - - - - a an e at une
i lassified in accordance with the fair value hierarch refer ote .2 c . Annual 2019-20 Report 30 June2020 89 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial ear ended 30 June 2020
ote e ro erty lant and ui ment Fair alue determination
i e a uation Signifi ant in uts e e sset ass a roa h on on specialised land arket approach n.a. ommunit ervice pecialised‑ land rown reehold arket approach bligations d ustments a on specialised buildings arket approach n.a. epreciated replacement ost per s uare metre pecialised‑ buildings cost approach seful life epreciated replacement ost per unit ehicles cost approach seful life
epreciated replacement ost per unit lant and e uipment cost approach seful life
epreciated replacement ost per unit edical uipment cost approach seful life
a communit ervice bligation of 2 was applied to the health services specialised land lassified in accordance with the fair value hierarch .
90 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial ear ended 30 June 2020
ote f ro erty lant and ui ment Re aluation Sur lus
ro ert ant an qui ment Re a uation Sur us alance at the beginning of the reporting period 10 3 1 Re a uation n rement and 1 10 uildings 1 a an e at the en of the Re orting erio
Re resente b and uildings 223 223
West Gippsland Healthcare Group Annual Report 2019-20 91 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 4.3: Depreciation and Amortisation
2020 2019 $'000 $'000 Depreciation Buildings 4,259 4,359 Plant and equipment 1,919 1,817 Motor vehicles 159 204 Medical equipment 684 619 Computers and communication equipment 56 47 Furniture and fittings 30 27 Right of use vehicles 92 24 Total Depreciation 7,199 7,097
Depreciation All infrastructure assets, buildings, plant and equipment and other non-financial physical assets (excluding items under operating leases, assets held for sale, land and investment properties) 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 West Gippsland Healthcare Group 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. Note 4.3 (a): Useful life of non-current assets
The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based.
As part of the building valuation, building values are separated into components and each component assessed for its useful life which is represented above. The useful lives of these assets have been reassessed in line with the most recent building revaluation on 30 June 2019.
92 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial ear ended 30 June 2020
ote ther assets an iabi ities
This section sets out those assets and liabilities that arose from est ippsland ealthcare roup s operations.
Stru ture .1 eceivables .2 a ables .3 ther liabilities
West Gippsland Healthcare Group Annual Report 2019-20 93 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 5.1: Receivables
2020 2019 $'000 $'000 CURRENT Contractual Inter Hospital Debtors 1,734 958 Trade Debtors 54 2 554 Patient Fees 33 1 318 Accrued Investment Income 48 83 Accrued Revenue 45 5 140 GHA 11 5 150 Less Allowance for Impairment Losses Trade Debtors (37) (53) Patient Fees (44) (38) Sub-Total Contractual Receivables 3,144 2,112 Statutory GST Receivable 27 2 357 Sub-Total Statutory Receivables 272 357 TOTAL CURRENT RECEIVABLES 3,416 2,469
NON-CURRENT Statutory Long service leave - Department of Health and Human Services 1,086 1,106 TOTAL NON-CURRENT RECEIVABLES 1,086 1,106 TOTAL RECEIVABLES 4,502 3,575
(a) Movement in the Allowance for impairment losses of contractual receivables
2020 2019 $'000 $'000 Balance at beginning of year 90 47 Amounts written off during the year 89 - Reversal of allowance written off during the year as uncollectable (88) (47) (Decrease)/Increase in allowance recognised in the net result (10) 90 Balance at end of year 81 90
94 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare roup for the financial ear ended 30 June 2020
ote Re ei ab es ont Re ei ab es re ognition
eceivables consist of
• ontractual receivables are classified as financial instruments and categorised as ‘financial assets at amortised costs’. The are initiall recognised at fair value plus an directl attributable transaction costs. est ippsland ealthcare roup holds the contractual receivables with the ob ective to collect the contractual cash flows and therefore subse uentl measured at amortised cost using the effective interest method less an impairment.
• tatutor receivables do not arise from contracts and are recognised and measured similarl to contractual receivables except for impairment but are not classified as financial instruments for disclosure purposes. est ippsland ealthcare roup applies 9 inancial nstruments for initial measurement of the statutor receivables and as a result statutor receivables are initiall recognised at fair value plus an directl attributable transaction cost. Trade debtors are carried at nominal amounts due and are due for settlement within 30 da s from the date of recognition.
n assessing impairment of statutor non contractual financial assets which are not financial instruments professional udgement is applied in assessing materialit using estimates averages and other computational methods in accordance with 13 Impairment of Assets est ippsland ealthcare roup is not exposed to an significant credit risk exposure to an single counterpart or an group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. ased on historical information about customer default rates management consider the credit ualit of trade receivables that are not past due or impaired to be good. m airment osses of ontra tua re ei ab es efer to ote .1 c ontractual receivables at amortised costs for est ippsland ealthcare Group’s contractual impairment losses.
West Gippsland Healthcare Group Annual Report 2019-20 95 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 5.2: Payables
2020 2019 Notes $'000 $'000 CURRENT Contractual Trade Creditors 2,280 2,275 Inter - Hospital Creditors 409 131 Unearned Income - Department of Health and Human Services 5.2 (b) 452 2,068 Accrued Salaries and Wages 2,070 1,478 Accrued Expenses 1,975 2,550 Accrued Expenses - GHA 96 121 Other 27 5 Other - GHA 11 11 7,320 8,639 Statutory
GST/FBT Payable 179 146 179 146 TOTAL CURRENT PAYABLES 7,499 8,785
TOTAL PAYABLES 7,499 8,785
Payables Recognition 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 West Gippsland Healthcare Group 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.
(a) Deferred capital 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 4,107 Grant revenue for capital works recognised consistent with the capital works undertaken during the year (4,107)
Closing balance of deferred grant consideration received for capital works -
Grant consideration included funding for the eight bed Short Stay Unit and Third Operating Theatre completed during the 2019/20 Year. Grant revenue is recognised progressively as the asset is constructed, since this is the time when West Gippsland Healthcare Group 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.
96 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
ot s to t inancial tat nts st Gippslan alt car Group for t financial ar n un
ote a ab es ont b ontra t iabi ities
p nin alanc un arn inco rou t for ar fro un a nts r c i for p rfor anc o li ations t to co pl t urin t p rio Grant consi ration for suffici ntl sp cific p rfor anc o li ations r c i urin t ar ss nu r co nis in t r portin p rio for t co pl tion of a p rfor anc o li ation ss Grant r nu for suffici ntl sp cific p rfor anc o li ations or s r co nis consist nt it t p rfor anc o li ations t urin t ar ota ontra t iabi ities Re resente b urr nt contract lia iliti s on curr nt contract lia iliti s
ontract lia iliti s inclu consi ration r c i in a anc fro custo rs in r sp ct of pati nt f s an inan ia guarantees a nts t at ar contin nt un r financial uarant contracts ar r co nis as a lia ilit at fair alu at t ti t uarant is issu . u s u ntl s oul t r a at rial incr as in t li li oo t at t uarant a a to rcis t lia ilit is r co nis at t i r of t a ount t r in in accor anc it t p ct cr it loss o l un r inancial nstru nts an t a ount initiall r co nis l ss n appropriat cu ulati a ortisation r co nis in accor anc it . n t t r ination of fair alu consi ration is i n to factors inclu in t o rall capital ana nt pru ntial sup r ision fra or in op ration t prot ction pro i t part nt of alt an u an r ic s a of fun in s oul t pro a ilit of fault incr as pro a ilit of fault t uarant part an t li l loss to t part nt in t nt of fault.
aturit ana sis of a ab es l as r f r to ot . for t a in anal sis of pa a l s.
West Gippsland Healthcare Group Annual Report 2019-20 97 Notes to the financial statements 30 June 2020
ot s to t inancial tat nts st Gippslan alt car Group for t financial ar n un ote ther iabi ities
RR oni s l in trust fun a l acco o ation posits oni s l in trust alar ac a in oni s l in trust ntal on s oni s l in trust t r
ota ther iabi ities
ota onies e in rust Re resente b the o o ing ssets
as ass ts n st nt an ot r financial ass ts
Refundable Accommodation Deposit (“RAD”)/Accommodation Bond liabilities s acco o ation on s ar non int r st arin posits a so a car r si nts to t Group upon a ission. s posits ar lia iliti s ic fall u an pa a l n t r si nt l a s t o . s t r is no uncon itional ri t to f r pa nt for ont s t s lia iliti s ar r cor as curr nt lia iliti s. acco o ation on lia iliti s ar r cor at an a ount ual to t proc s r c i n t of r t ntion an an ot r a ounts uct fro t acco o ation on in accor anc it t ar ct .
98 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
ot s to t inancial tat nts st Gippslan alt car Group for t financial ar n un
ote o e finance ou ope ations
is s ction pro i s infor ation on t sourc s of financ utilis st Gippslan alt car Group urin its op rations alon it int r st p ns s t cost of orro in s an ot r infor ation r lat to financin acti iti s of st Gippslan alt car Group. is s ction inclu s isclosur s of alanc s t at ar financial instru nts suc as orro in s an cas alanc s . ot . pro i s a itional sp cific financial instru nt isclosur s.
t uctu e . orro in s . as an cas ui al nts . o it nts for p n itur . on cas financin an in stin acti iti s
West Gippsland Healthcare Group Annual Report 2019-20 99 Notes to the financial statementsNotes to the Fina30ncia lJune Stateme n2020ts West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 6.1: Borrowings
2020 2019 $'000 $'000 CURRENT Lease liability (i) 147 54 Advances from government - DHHS Loan (ii) 629 629 Advances from government - Other 1,230 - Total Current Borrowings 2,006 683 NON CURRENT Lease liability (i) 542 241 Advances from government - DHHS Loan (ii) 867 1,461 Total Non Current Borrowings 1,409 1,702 Total Borrowings 3,415 2,385
(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. (ii) These are unsecured loans which bear no interest.
(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 196 63 147 54 Later than 1 year and not later than 5 years 526 251 542 241 Later than 5 years Minimum lease payments 722 31 4 68 9 29 5 Less future finance charges (33) (19) - - TOTAL 689 29 5 68 9 29 5
Included in the financial statements as: Current borrowings - lease liability - - 147 54 Non-current borrowings - lease liability - - 542 241 TOTAL - - 68 9 29 5
The weighted average interest rate implicit in the finance lease is 4.52% (2019: 4.08%).
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.
West Gippsland Healthcare Group’s leasing activities West Gippsland Healthcare Group has entered into lease related to motor vehicles. For any new contracts entered into on or after 1 July 2019, West Gippsland Healthcare Group 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 West Gippsland Healthcare Group 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 West Gippsland Healthcare Group and for which the supplier does not have substantive substitution rights; · West Gippsland Healthcare Group 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 West Gippsland Healthcare Group has the right to direct the use of the identified asset throughout the period of use; and · West Gippsland Healthcare Group 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.
100 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
ot s to t inancial tat nts st Gippslan alt car Group for t financial ar n un
ote Bo o in s (cont d) epa ation of lease and non lease components t inc ption or on r ass ss nt of a contract t at contains a l as co pon nt t l ss is r uir to s parat out an account s parat l for non l as co pon nts it in a l as contract an clu t s a ounts n t r inin t l as lia ilit an ri t of us ass t a ount. Reco nition and measu ement of leases as a lessee (unde AA B f om ul ) Lease Liability – initial measurement l as lia ilit is initiall asur at t pr s nt alu of t l as pa nts unpai at t co nc nt at iscount usin t int r st rat i plicit in t l as if t at rat is r a il t r ina l or st Gippslan alt car Groups incr ntal orro in rat . as pa nts inclu in t asur nt of t l as lia ilit co pris t follo in
Lease Liability – subsequent measurement u s u nt to initial asur nt t lia ilit ill r uc for pa nts a an incr as for int r st. t is r asur to r fl ct an r ass ss nt or o ification or if t r ar c an s in su stanc fi pa nts. n t l as lia ilit is r asur t corr spon in a ust nt is r fl ct in t ri t of us ass t or profit an loss if t ri t of us ass t is alr a r uc to ro. o t te m leases and leases of lo alue assets st Gippslan alt car Group as l ct to account for s ort t r l as s an l as s of lo alu ass ts usin t practical p i nts. nst a of r co nisin a ri t of us ass t an l as lia ilit t pa nts in r lation to t s ar r co nis as an p ns in profit or loss on a strai t lin asis o r t l as t r .
esentation of i t of use assets and lease liabilities st Gippslan alt car Group pr s nts ri t of us ass ts as ‘property plant equipment’ unl ss t t t finition of in st nt prop rt in ic cas t ar isclos as ‘investment property’ in t alanc s t. as liabilities are presented as ‘borrowings’ in the balance sheet. Reco nition and measu ement of leases (unde AA B until une ) n t co parati p rio l as s of prop rt plant an uip nt r classifi as it r financ l as or op ratin l as s.
st Gippslan alt car Group t r in t r an arran nt as or contain a l as as on t su stanc of t arran nt an r uir an ass ss nt of t r fulfil nt of t arran nt is p n nt on t us of t sp cific ass t s an t arran nt con a ri t to us t ass t s . as s of prop rt plant an uip nt r st Gippslan alt car Group as a l ss a su stantiall all of t ris s an r ar s of o n rs ip r classifi as financ l as s. financ l as s r initiall r co nis as ass ts an lia iliti s at a ounts ual to t fair alu of t l as prop rt or if lo r t pr s nt alu of t ini u l as pa nt ac t r in at t inc ption of t l as . l as ass t is account for as a non financial p sical ass t an pr ciat o r t s ort r of t sti at us ful lif of t ass t or t t r of t l as . ini u financ l as pa nts r apportion t n t r uction of t outstan in l as lia ilit an t p rio ic financ p ns ic is calculat usin t int r st rat i plicit in t l as an c ar ir ctl to t consoli at co pr nsi op ratin stat nt. ontin nt r ntals associat it financ l as s r r co nis as an p ns in t p rio in ic t ar incurr . ss ts l un r ot r l as s r classifi as op ratin l as s an r not r co nis in st Gippslan alt car Groups alanc s t. p ratin l as pa nts r r co nis as an op ratin p ns in t tat nt of o pr nsi nco on a strai t lin asis o r t l as t r . i pact of initiallin appl in Revenue from Contracts with Customers an Income of not-for- profit entities to st Gippslan alt car Group’s rant r nu is scri in ot . . n r application of t o ifi r trosp cti transition t o c os n in appl in an for t first ti co parati infor ation as not n r stat to r fl ct t n r uir nts. a option of an i i not a an i pact on t r o pr nsi nco an t tat nt of as flo s for t financial ar.
West Gippsland Healthcare Group Annual Report 2019-20 101 Notes to the financial statements 30 June 2020
otes to the inancial tatements est Gippsland ealthcare Group or the inancial year ended une
te rr in s nt ntity as lessee eases are recognised as assets and liabilities at amounts equal to the air value o the lease property or i lower the present value o the minimum lease payment each determined at the inception o the lease. he lease assets under the arrangement are accounted or as a non inancial physical asset and is depreciated over the term o the lease plus ive years. inimum lease payments are apportioned between reduction o the outstanding lease liability and the periodic inance e pense which is calculated using the interest rate implicit in the lease and charged directly to the omprehensive perating tatement. ontingent rentals associated with leases are recognised as an e pense in the period in which they are incurred. rr in s ll borrowings are initially recognised at air value o the consideration received less directly attributable transaction costs. he measurement basis subsequent to initial recognition depends on whether the est Gippsland ealthcare Group has categorised its liability as either ‘financial liabilities designated at air value through pro it or loss’, or inancial liabilities at ‘amortised cost’. ubsequent to initial recognition interest bearing borrowings are measured at amortised cost with any di erence between the initial recognised amount and the redemption value being recognised in the net result over the period o the borrowing using the effective interest method. Non-interest bearing borrowings are measured at ‘fair value through profit or loss’
102 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
Notes to the inancial tatements est ippsland ealthcare roup for the financial ear ended une
te as an as qui alents
ash on hand e cluding monies held in trust ash at an e cluding monies held in trust , , ash at an - monies held in trust , , L L
ash and cash e uivalents recognised on the alance heet comprise cash on hand and in ban s, deposits at call and highl li uid investments with an original maturit 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 readil convertible to nown amounts of cash and are sub ect to insignificant ris of changes in value.
or cash flow statement presentation purposes, cash and cash e uivalents include ban overdrafts, which are included as liabilities on the balance sheet. he cash flow statement includes monies held in trust.
West Gippsland Healthcare Group Annual Report 2019-20 103 Notes to the financial statements 30 June 2020
Notes to the inancial tatements est ippsland ealthcare roup for the financial ear ended une
te mmitments r e en iture
a ital en iture mmitments ess than ear , tal a ital en iture mmitments
n an ellable rt erm an l alue lease mmitments ess than ear onger than ear but not longer than ears tal n an ellable Lease mmitments
tal mmitments r en iture in lusi e ess recoverable from the ustralian a ffice L e lusi e
uture finance lease pa ments are recognised on the balance sheet, refer to Note . orrowings.
Commitments ommitments for future e penditure include operating and capital commitments arising from contracts. hese commitments are disclosed at their nominal value and are inclusive of the pa able. n addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant pro ects are stated. hese future e penditures cease to be disclosed as commitments once the related liabilities are recognised on the alance heet. est ippsland ealthcare roup has entered into commercial leases on certain medical e uipment, computer e uipment and propert where it is not in the interest of est ippsland ealthcare roup to purchase these assets. hese leases have an average life of between and ears with renewal terms included in the contracts. enewals are at the option of est ippsland ealthcare roup. here are no restrictions placed upon the lessee b entering into these leases.
104 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
Notes to the inancial tatements est ippsland ealthcare roup for the financial ear ended une
te n as inan in an in estin a ti ities
c uisition of plant and e uipment b means of inance eases tal n as inan in an n estin ti ities
West Gippsland Healthcare Group Annual Report 2019-20 105 Notes to the financial statements 30 June 2020
Notes to the inancial tatements est ippsland ealthcare roup for the financial ear ended une
te is s ntin en ies an aluati n un ertainties
est ippsland ealthcare roup is e posed to ris from its activities and outside factors. n addition, it is often necessar to ma e udgements and estimates associated with recognition and measurement of items in the financial statements. his section sets out financial instrument specific information, including e posures to financial ris s as well as those items that are contingent in nature or re uire a higher level of udgement to be applied, which for the health service is related mainl to fair value determination.
tru ture . inancial nstruments . ontingent sset and ontingent iabilities
106 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020 Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020 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 West Gippsland Healthcare Group'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 Assets Financial at Amortised Liabilities at Cost Amortised Cost Total 2020 Note $'000 $'000 $'000 Contractual Financial Assets Cash and Cash Equivalents 6.2 6,526 - 6,526 Receivables - Trade Debtors 5.1 2,239 - 2,239 Other Receivables 5.1 905 - 905 Investments and Other Financial Assets - Term Deposits 4.1 1,500 - 1,500 Investments and Other Financial Assets - Accommodation Bonds 4.1 10,022 - 10,022 Investments and Other Financial Assets - Other 4.1 203 - 203 Total Financial Assets i 21,395 - 21,395
Financial Liabilities Payables 5.2 - 7,320 7,320 Borrowings 6.1 - 3,415 3,415 Other Financial Liabilities - Refundable Accommodation Deposits 5.3 - 10,022 10,022 Other Financial Liabilities - Other 5.3 - 244 244 Total Financial Liabilities i - 21,001 21,001
Financial Assets Financial at Amortised Liabilities at Cost Amortised Cost Total 2019 Note $'000 $'000 $'000 Contractual Financial Assets Cash and Cash Equivalents 6.2 9,631 - 9,631 Receivables - Trade Debtors 5.1 1,459 - 1,459 Other Receivables 5.1 653 - 653 Investments and Other Financial Assets - Term Deposits 4.1 1,500 - 1,500 Investments and Other Financial Assets - Accommodation Bonds 4.1 9,606 - 9,606 Investments and Other Financial Assets - Other 4.1 156 - 156 Total Financial Assets i 23,005 - 23,005
Financial Liabilities Payables 5.2 - 6,571 6,571 Borrowings 6.1 - 2,385 2,385 Other Financial Liabilities - Refundable Accommodation Deposits 5.3 - 9,606 9,606 Other Financial Liabilities - Other 5.3 - 165 165 Total Financial Liabilities i - 18,727 18,727
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 financial assets under AASB 9 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 West Gippsland Healthcare Group 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. West Gippsland Healthcare Group recognises the following assets in this category: • cash and deposits; • receivables (excluding statutory receivables); and • term deposits; Financial assets at fair value through other comprehensive income Debt investments are measured at fair value through other comprehensive income 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 West Gippsland Healthcare Group to achieve its objective both by collecting the contractual cash flows and by selling the financial assets, and • the assets’ contractual terms give rise to cash flows that are solely payments of principal and interests. Equity investments are measured at fair value through other comprehensive income if the assets are not held for trading and West Gippsland Healthcare Group has irrevocably elected at initial recognition to recognise in this category.
These assets are initially recognised at fair value with subsequent change in fair value in other comprehensive income.
Upon disposal of these debt instruments, any related balance in the fair value reserve is reclassified to profit or loss. However, upon disposal of these equity instruments, any related balance in fair value reserve is reclassified to retained earnings.
West Gippsland Healthcare Group recognises certain unlisted equity instruments within this category.
West Gippsland Healthcare Group Annual Report 2019-20 107 Notes to the financial statements 30 June 2020
Notes to the inancial tatements est ippsland ealthcare roup for the financial ear ended une te a inan ial nstruments nt
inan ial assets at air alue t r u net result uit instruments that are held for trading as well as derivative instruments are classified as fair value through net result. ther financial assets are re uired to be measured at fair value through net result unless the are measured at amortised cost or fair value through other comprehensive income as e plained above.
owever, as an e ception to those rules above, est ippsland ealthcare roup ma , at initial recognition, irrevocabl designate financial assets as measured at fair value through net result if doing so eliminates or significantl reduces a measurement or recognition inconsistenc (‘accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases.
est ippsland ealthcare roup recognises listed e uit securities as mandatoril measured at fair value through net result and designated all of its managed investment schemes as well as certain - ear government bonds as fair value through net result. inan ial liabilities at am rtise st inancial liabilities at amortised cost are initiall recognised on the date the are originated. he are initiall measured at fair value plus an directl attributable transaction costs. ubse uent to initial recognition, these financial instruments are measured at amortised cost with an difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liabilit , using the effective interest rate method. est ippsland ealthcare roup recognises the following liabilities in this categor • payables (excluding statutory payables); and • borrowings (including finance lease liabilities). eri ati e inan ial instruments erivative financial instruments are classified as held for trading financial assets and liabilities. he are initiall recognised at fair value on the date on which a derivative contract is entered into. erivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative. n gains or losses arising from changes in the fair value of derivatives after initial recognition are recognised in the consolidated comprehensive operating statement as an ‘other economic flow’ included in the net result. settin inan ial instruments inancial instrument assets and liabilities are offset and the net amount presented in the consolidated balance sheet when, and onl when, est ippsland ealthcare roup has a legal right to offset the amounts and intend either to settle on a net basis or to realise the asset and settle the liabilit simultaneousl . ome master netting arrangements do not result in an offset of balance sheet assets and liabilities. here est ippsland ealthcare roup does not have a legall enforceable right to offset recognised amounts, because the right to offset is enforceable onl on the occurrence of future events such as default, insolvenc or ban ruptc , the are reported on a gross basis. ere niti n inan ial assets 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 e pired or est ippsland ealthcare roup retains the right to receive cash flows from the asset, but has assumed an obligation to pa them in full without material delay to a third party under a ‘pass through’ arrangement; or est ippsland ealthcare roup has transferred its rights to receive cash flows from the asset and either
has transferred substantiall all the ris s and rewards of the asset or has neither transferred nor retained substantiall all the ris s and rewards of the asset but has transferred control of the asset. here est ippsland ealthcare roup has neither transferred nor retained substantiall all the ris s and rewards or transferred control, the asset is recognised to the extent of West Gippsland Healthcare Group’s continuing involvement in the asset. ere niti n inan ial liabilities financial liabilit is derecognised when the obligation under the liabilit is discharged, cancelled or e pires. hen an e isting financial liabilit is replaced b another from the same lender on substantiall different terms, or the terms of an e isting liabilit are substantiall modified, such an e change or modification is treated as a derecognition of the original liabilit 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. e lassi i ati n inan ial instruments ubse uent to initial recognition reclassification of financial liabilities is not permitted. inancial assets are re uired to reclassified between fair value through net result, fair value through other comprehensive income and amortised cost when and onl when est ippsland ealthcare Group’s business model for managing its financial assets has changes such that its previous model would no longer appl .
108 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group for the financial year ended une
te b ayables an rr in s aturity nalysis
The following table discloses the contractual maturity analysis for West Gippsland Healthcare Group s financial liabilities. or interest rates applicable to each class of liability refer to individual notes to the financial statements.
aturity analysis inan ial Liabilities as at une aturity ates arryin minal Less t an m nt s ears te m unt m unt nt nt s ear inan ial Liabilities at am rtise st ayables orrowings ther inancial iabilities efundable ccommodation eposits ther inancial iabilities ther
tal inan ial Liabilities
inan ial Liabilities at am rtise st ayables orrowings ther inancial iabilities efundable ccommodation eposits ther inancial iabilities ther
tal inan ial Liabilities
(i) ging analysis of financial liabilities excludes statutory financial liabilities (i.e G T payable)
West Gippsland Healthcare Group Annual Report 2019-20 109 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group for the financial year ended une
te ntra tual re ei ables at am rtise st
-Jul- Current 30 Days 60 Days 90 Days 120+ Days Total ote e ted loss rate Loss allo an e
-Jun- Current 30 Days 60 Days 90 Days 120+ Days Total
e ted loss rate Loss allo an e
m airment inan ial assets un er Financial Instruments West Gippsland Healthcare Group records the allowance for expected credit loss for the relevant financial instruments in accordance with inancial nstruments ‘Expected redit Loss’ approach. ub ect to inancial nstruments impairment assessment includes the West Gippsland Healthcare Group’s contractual receivables, statutory receivables and its investment in debt instruments. uity instruments are not sub ect to impairment under Financial Instruments . ther financial assets mandatorily measured or designated at fair value through net result are not sub ect to impairment assessment under Financial Instruments . While cash and cash e uivalents are also sub ect to the impairment re uirements of Financial Instruments any identified impairment loss would be immaterial. ntra tual re ei ables at am rtise st The West Gippsland Healthcare Group applies inancial nstruments simplified approach for all contractual receivables to measure expected credit losses using a lifetime expected loss allowance based on the assumptions about ris of default and expected loss rates. The West Gippsland Healthcare Group has grouped contractual receivables on shared credit ris characteristics and days past due and select the expected credit loss rate based on West Gippsland Healthcare Group’s past history existing mar et conditions as well as forward loo ing estimates at the end of the financial year. n this basis the West Gippsland Healthcare Group determines the opening loss allowance and the closing loss allowance at end of the ‑ financial year as disclosed above.
e n iliati n t e m ement in t e l ss all an e r ntra tual re ei ables
ote 2020 2019 Balan e at e innin of the year s enin Loss Allo an e Balan e at end of the year
redit loss allowance is classified as other economic flows in the net result. ontractual receivables are written off when there is no reasonable expectation of recovery and impairment losses are classified as a transaction expense. ubse uent recoveries of amounts previously written off are credited against the same line item. n prior years a provision for doubtful debts is recognised when there is ob ective evidence that the debts may not be collected and bad debts are written off when identified. provision is made for estimated irrecoverable amounts from the sale of goods when there is ob ective evidence that an individual receivable is impaired. ad debts considered as written off by mutual consent. tatut ry re ei ables an ebt in estments at am rtise st The West Gippsland Healthcare Group’s non contractual receivables arising from statutory re uirements are not financial instruments. However they are nevertheless recognised and measured in accordance with inancial nstruments re uirements as if those receivables are financial instruments. oth the statutory receivables and investments in debt instruments are considered to have low credit ris ta ing into account the counterparty’s credit rating ris of default and capacity to meet contractual cash flow obligations in the near term. s the result the loss allowance recognised for these financial assets during the period was limited to months expected losses.
110 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group or the inancial year ended une
te ntin ent assets an ntin ent liabilities
ontin ent assets and contin ent liabilities are not reco nised in the alance heet, but are disclosed by ay o note and, i uanti iable, are measured at nominal value. ontin ent assets and contin ent liabilities are presented inclusive o G receivable or payable respectively. here ere no onti ent ssets or onti ent Liabilities or the ear Ended th une il
West Gippsland Healthcare Group Annual Report 2019-20 111 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group or the inancial year ended une
te t er is l sures
his section includes additional material disclosures re uired by accountin standards or other ise, or the understandin o this inancial report. tru ture . econciliation o et esult or the ear to et ash lo rom peratin ctivities . esponsible persons disclosure . emuneration o Executive icers . elated arties . emuneration o uditors . Events ccurrin a ter the alance heet ate . ointly ontrolled perations . Economic ependency . han es in accountin policy, revision o estimates and corrections o prior period errors. . s ssued that are not yet E ective . Glossary
112 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group or the inancial year ended une
te e n iliati n et esult r t e ear t et as l r m eratin ti ities
ote
et esult r t e ear , , n as ements epreciation and amortisation . , , llo ance or impairment losses o contractual receivables . a ontributed apital iscount expense on loan evaluation o Lon ervice Leave ements in lu e in n estin an inan in ti ities et Gain rom isposal o on inancial hysical ssets ements in ssets an Liabilities Change in Operating Assets and Liabilities ncrease in eceivables . ecrease ncrease in repayments ecrease ncrease in ayables . ncrease in ther Liabilities . , ecrease ncrease in nventories . ncrease in ther ssets . , , ecrease in employee bene its . , ,
L
West Gippsland Healthcare Group Annual Report 2019-20 113 Notes to the financial statements 30 June 2020
Notes to the Financial Statements West Gippsland Healthcare Group for the financial year ended 30 June 2020
Note 8.2: Responsible Persons In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period.
Period Responsible Ministers:
01/07/2019 - 30/06/2020 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
The Honourable Luke Donnellan, Minister for Child Protection, Minister for Disability, Ageing 01/07/2019 - 30/06/2020 and Carers
Governing Boards
Mrs C Holland 01/07/2019 - 30/06/2020 Mrs S Brentnall 01/07/2019 - 30/06/2020 Mr J Chikuse 01/07/2019 - 30/06/2020 Mrs F Firdous 01/07/2019 - 30/06/2020 Mrs S Lukies 01/07/2019 - 30/06/2020 Ms S Lloyd 01/07/2019 - 30/06/2020 Ms J Moorfoot 01/07/2019 - 30/06/2020 Mrs B Raufer 01/07/2019 - 30/06/2020 Mr A Selent 01/07/2019 - 30/06/2020 Mrs L Williams 01/07/2019 - 30/06/2020
Accountable Officers Mr D.Weeks (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:
2020 2019 Income Band No. No. $0 - $9,999 - 1 $10,000 - $19,999 9 7 $20,000 - $29,999 1 - $390,000 - $399,999 - 1 $400,000 - $410,000 1 - Total Numbers 1 1 9
2020 2019 $'000 $'000 Total remuneration received or due and receivable by Responsible Persons from the reporting entity amounted to: 5 62 504
Amounts relating to the Governing Board Members and Accountable Officer are disclosed in West Gippsland Healthcare Groups' controlled entities financial statements.
Amounts relating to Responsible Ministers are reported within the Department of Parliamentary Services' Financial Report.
114 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group or the inancial year ended une
te emunerati n e uti es
he number o executive o icers, other than inisters and ccountable icers, and their total remuneration durin the reportin period are sho n in the table belo . otal annualised employee e uivalent provides a measure o ull time e uivalent executive o icers over the reportin period.
emunerati n e uti e i ers tal emunerati n in lu in ey ana ement ers nnel is l se in te hort term ene its ost employment ene its ther Lon term ene its ermination ene its tal emunerati n i
otal umber o Executives otal nnualised Employee E uivalent ii . .
i he total number o executive o icers includes persons ho meet the de inition o ey ana ement ersonnel o West Gippsland Healthcare Groups under elated arty isclosures and are also reported ithin ote . elated arties.
ii nnualised employee e uivalent is based on or in ordinary hours per ee over the reportin period.
otal remuneration payable to executives durin the year included additional executive o icers and a number o executives ho received bonus payments durin the year. hese bonus payments depend on the terms o individual employment contracts. emuneration comprises employee bene its in all orms o consideration paid, payable or provided in exchan e or services rendered, and is disclosed in the ollo in cate ories rt term m l yee ene its alaries and a es, annual leave or sic leave that are usually paid or payable on a re ular basis, as ell as non monetary bene its such as allo ances and ree or subsidised oods or services. st em l yment ene its ensions and other retirement bene its paid or payable on a discrete basis hen employment has ceased. t er L n term ene its Lon service leave, other lon service bene it or de erred compensation. erminati n ene its ermination o employment payments, such as severance pac a es.
West Gippsland Healthcare Group Annual Report 2019-20 115 Notes to the financial statements 30 June 2020
otes to the inancial tatements West Gippsland Healthcare Group or the inancial year ended une
te elate arties
West Gippsland Healthcare Groups is a holly o ned and controlled entity o the tate o ictoria. elated parties o the West Gippsland Healthcare Group include ll ey mana ement personnel and their close amily members abinet ministers here applicable and their close amily members ointly ontrolled peration Gippsland Health lliance and ll hospitals and public sector entities that are controlled and consolidated into the tate o ictoria inancial statements.
s are those people ith the authority and responsibility or plannin , directin and controllin the activities o West Gippsland Healthcare Groups and its controlled entities, directly or indirectly.
ey ana ement ersonnel o the West Gippsland Healthcare Group include those persons identi ied and listed under ote . esponsible ersons and controlled entities o WGHG.
he compensation detailed belo excludes the salaries and bene its the ort olio inisters receive. he Minister’s remuneration and allo ances is set by the Parliamentary Salaries and Superannuation Act 1968 , and is reported ithin the epartment o arliamentary Services’ inancial eport.
m ensati n s hort term Employee ene its i ost employment ene its ther Lon term ene its ii tal i otal remuneration paid to s employed as a contractor durin the reportin period throu h accounts payable has been reported under short term employee bene its. ii s are also reported in ote . esponsible ersons or ote . emuneration o Executives.
i ni i ant ransa ti ns it ernment elate ntities he West Gippsland Healthcare Group received undin rom the epartment o Health and Human ervices o . m . m and indirect contributions o . m . m . alances outstandin as year end are il il Expenses incurred by the West Gippsland Healthcare Group in deliverin services and outputs are in accordance ith Health urchasin ictoria re uirements. Goods and services includin procurement, dia nostics, patient meals and multi site operational support are provided by other ictorian Health ervice roviders on commercial terms. ro essional medical indemnity insurance and other insurance products are obtained rom the ictorian ana ed nsurance uthority. he tandin irections o the ssistant reasurer re uire the West Gippsland Healthcare Group to hold cash in excess o or in capital in accordance ith the State’s centralised ban in arran ements. ll borro in s are re uired to be sourced rom reasury orporation ictorian unless an exemption has been approved by the inister or Health and Human ervices and the reasurer.
ransa ti ns it s an t er elate arties Given the breadth and depth o tate overnment activities, related parties transact ith the ictorian public sector in a manner consistent ith other members o the public e. . stamp duty and other overnment ees and char es. urther employment o processes ithin the ictorian public sector occur on terms and conditions consistent ith the Public Administration Act 2004 utside o normal citi en type transactions ith the West Gippsland Healthcare Group, there ere no related party transactions that involved ey mana ement personnel, their close amily members and their personal business interests. o provision has been re uired, nor any expense reco nised, or impairment o receivables rom related parties. here ere no related party transactions ith abinet inisters re uired to be disclosed in . here ere no related party transactions re uired to be disclosed or the West Gippsland Healthcare Group oard o irectors, hie Executive icer and Executive irectors in .
116 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
tes t t e inancia State ents est i s an ea t care r r t e inancia ear en e ne
te elate arties nt
ce t r t e transacti n iste e t ere ere n t er re ate art transacti ns re ire t e isc se r t e est i s an ea t care r n ati n ar irect rs in un in e ei e ntity es ri ti n er i e M nas ea t r visi n inen Services re ea t r visi n inen Services atr e e i na s ita ransiti na are r ra i s an ea t iance n r ati n ec n
ayments a e ntity es ri ti n er i e ict rian Mana e ns rance t rit nn a ns rance re i ance ict ria r visi n atient rans rt M nas ea t ct rs n tati n atr e e i na s ita ct rs n tati n i s an ea t iance n r ati n ec n
ebt rs e ei able ntity es ri ti n er i e re ea t r visi n inen Services M nas ea t r visi n inen Services atr e e i na s ita ransiti na are r ra
West Gippsland Healthcare Group Annual Report 2019-20 117 Notes to the financial statements 30 June 2020
tes t t e inancia State ents est i s an ea t care r r t e inancia ear en e ne
te emunerati n u it rs
i t rian u it r eneral s i e
it t e inancia State ents
L
118 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
tes t t e inancia State ents est i s an ea t care r r t e inancia ear en e ne
te ents urrin a ter t e alan e eet ate
e an e ic as create n rece ente ec n ic ncertaint ct a ec n ic events an c n iti ns in t e t re a e ateria i erent r t se esti ate t e est i s an ea t care r at t e re rtin ate s res nses vern ent c ntin e t ev ve ana e ent rec nises t at it is i ic t t re ia esti ate it an e ree certaint t e tentia i act t e an e ic a ter t e re rtin ate n est i s an ea t care r its erati ns its t re res ts an inancia siti n e state e er enc in ict ria as e ten e n Se t e er nti ct er revisite nt nti Marc t er atters r circ stances ave arisen since t e en t e inancia ear ic si ni icant a ecte r a a ect t e erati ns t e est i s an ea t care r t e res ts t e erati ns r t e state a airs t e est i s an ea t care r in t e t re inancia ears
West Gippsland Healthcare Group Annual Report 2019-20 119 Notes to the financial statements 30 June 2020
tes t t e inancia State ents est i s an ea t care r r t e inancia ear en e ne
te intly ntr lle erati ns
ners i nterest ame ntity rin i al ti ity i s an ea t iance n r ati n ec n
est i s an ea t care r s interest in t e a ve int c ntr e erati ns are etai e e e a nts are inc e in t e c ns i ate inancia state ents n er t eir res ective cate ries
as an as iva ents eceiva es t er L
r ert ant an i ent L L L L i t se ia i ities rrent ccr e enses t er L L L
L L i t se ia i ities n rrent L L L
L L L
cc ate S r ses e icits L
est i s an ea t care r s interest in reven es an e enses res tin r int c ntr e erati ns are etai e e
t er nc e M Services nterest nc e L
t er enses r ntin in erati ns M Services e reciati n L L
ntin ent Liabilities an a ital mmitments ere are n n n c ntin ent ia i ities r ca ita c it ents e t e int c ntr e erati ns at a ance ate
120 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
tes t t e inancia State ents est i s an ea t care r r t e inancia ear en e ne
te n mi e en en y est i s an ea t care r is e en ent n t e e art ent ea t an an Services r t e a rit its reven e se t erate t e entit t t e ate t is re rt t e ar irect rs as n reas n t e ieve t e e art ent i n t c ntin e t s rt est i s an ea t care r
West Gippsland Healthcare Group Annual Report 2019-20 121 Notes to the financial statements tes t t e30 inancia June State ents 2020 est i s an ea t care r r t e inancia ear en e ne
te an es in a untin li y re isi n estimates an rre ti ns ri r eri err rs an es in a untin li y Leases This note explains the impact of the adoption of AASB 16 Leases on West Gippsland Healthcare Group’s financial statements. est i s an ea t care r as a ie S it a ate initia a icati n est i s an ea t care r as e ecte t a S sin t e i ie retr s ective a r ac as er t e transiti na r visi ns S r a eases r ic it is a essee e c ative e ect initia a icati n is rec nise in retaine earnin s as at cc r in t e c arative in r ati n resente is n t restate an is re rte n er S an re ate inter retati ns revi s est i s an ea t care r eter ine at c ntract ince ti n et er an arran e ent is r c ntains a ease n er S an nter retati n – ‘Determining et er an arran e ent c ntains a Lease’. n er S est i s an ea t care r assesses et er a c ntract is r c ntains a ease ase n t e e initi n a ease as e aine in n te n transiti n t S est i s an ea t care r as e ecte t a t e ractica e e ient t ran at er t e assess ent ic transacti ns are eases t a ie S n t c ntracts t at ere revi s i enti ie as eases ntracts t at ere n t i enti ie as eases n er S an nter retati n ere n t reassesse r et er t ere is a ease ere re t e e initi n a ease n er S as a ie t c ntracts entere int r c an e n r a ter Leases lassi ie as eratin leases un er
s a essee est i s an ea t care r revi s c assi ie eases as eratin r inance eases ase n its assess ent et er t e ease trans erre si ni icant a t e ris s an re ar s inci enta t ners i t e n er in asset t est i s an ea t care r n er S est i s an ea t care r rec nises ri t se assets an ease ia i ities r a eases e ce t ere e e ti n is avai e in res ect s rt ter an va e eases n a ti n S est i s an ea t care r rec nise ease ia i ities in re ati n t eases ic a revi s een c assi ie as eratin eases n er t e rinci es S eases ese ia i ities ere eas re at t e resent va e t e re ainin ease a ents isc nte sin est i s an ea t care Group’s incre enta rr in rate as n transiti n ri t se assets are eas re at t e a nt e a t t e ease ia i it a ste t e a nt an re ai r accr e ease a ents re atin t t at ease rec nise in t e a ance s eet as at ne est i s an ea t care r as e ecte t a t e in ractica e e ients en a in S t eases revi s c assi ie as eratin eases n er S
ie a sin e isc nt rate t a rt i eases it si i ar c aracteristics ste t e ri t se assets t e a nt S ner s c ntracts r visi n i e iate e re t e ate ie t e e e ti n n t t rec nise ri t se assets an ia i ities r eases it ess t an nt s ease ter
c e initia irect c sts r eas rin t e ri t se asset at t e ate initia a icati n an
se in si t en eter inin t e ease ter i t e c ntract c ntains ti ns t e ten r ter inate t e ease r eases t at ere c assi ie as inance eases n er S t e carr in a nt t e ri t se asset an ease ia i it at are eter ine as t e carr in a nt t e ease asset an ease ia i it n er S i e iate e re t at ate Leases as a Less r est i s an ea t care r is n t re ire t a e an a st ents n transiti n t S r eases in ic it acts as a ess r est i s an ea t care r acc nte r its eases in acc r ance it S r t e ate initia a icati n m a ts n inan ial statements n transiti n t S est i s an ea t care r rec nise ri t se assets an ease ia i ities en eas rin ease ia i ities est i s an ea t care r isc nte ease a ents sin its incre enta rr in rate at e ei te avera e rate a ie is
ta eratin ease it ents isc se at ne inance ease ia i ities as at ne ec niti n e ce ti n r S rt er eases eases va e assets ease ia i ities ec nise at
122 West Gippsland Healthcare Group Annual Report 2020 Notes to the financial statements 30 June 2020
otes to the inancial Statements West Gippsland Healthcare Group for the financial ear ended une
te an es in a untin li y re isi n estimates an rre ti ns ri r eri err rs nt
e enue r m ntra ts it ust mers n accordance ith D 1 1 re uirements the West Gippsland Healthcare Group has applied the transitional pro ision of AASB 1 under modified retrospecti e method ith the cumulati e effect of initiall appl ing this standard against the opening retained earnings at 1 ul 1 . nder this transition method West Gippsland Healthcare Group applied this standard retrospecti el onl to contracts that are not ‘completed contracts’ at the date of initial application. West Gippsland Healthcare Group has not applied the fair alue measurement re uirements for right of use assets arising from leases ith significantl elo mar et terms and conditions principall to ena le the entit to further its o ecti es as allo ed under temporar option under AASB 16 and as mandated D 1 . omparati e information has not een restated. ote .1 – Sales of goods and ser ices includes details a out the transitional application of AASB 1 and ho the standard has een applied to re enue transactions. n me t r r it ntities n accordance ith D 1 re uirements West Gippsland Healthcare Group has applied the transitional pro ision of AASB 1 under modified retrospecti e method ith the cumulati e effect of initiall appl ing this standard against the opening retained earnings at 1 ul 1 . nder this transition method West Gippsland Healthcare Group applied this standard retrospecti el onl to contracts and transactions that are not completed contracts at the date of initial application.
omparati e information has not een restated. ote .1 – Grants includes details a out the transitional application of AASB 1 and ho the standard has een applied to re enue transactions. The adoption of AASB 1 did not ha e an impact on ther comprehensi e income and the Statement of ash flo s for the financial ear. ransiti n im a t n inan ial statements
This note explains the impact of the adoption of the follo ing ne accounting standards for the first time from 1 ul 1
AASB 1 Revenue from Contracts with Customers
AASB 1 Income of Not-for-Profit Entities and
AASB 16 Leases.
mpact on the Balance Sheet due to the adoption of AASB 1 AASB 1 and AASB 16 is illustrated ith the follo ing reconciliation et een the restated carr ing amounts at une 1 and the alances reported under the ne accounting standards e re e ter ne untin m a t ne a untin alan e eet tes tan ar s a untin stan ar s enin uly tan ar enin uly
Leased Assets . ight of se Assets .
tal ssets
West Gippsland Healthcare Group Annual Report 2020 123 Notes to the financial statements 30 June 2020
otes to t e nanc al tatements est ppsland ealt care ro p or t e nanc al ear ended ne
te s ssue t at are n t yet e ti e
erta n ne stral an acco nt n standards a e een p l s ed t at are not mandator or t e ne report n per od epartment o reas r and nance assesses t e mpact o all t ese ne standards and ad ses est ppsland ealt care ro ps o t e r appl ca l t and earl adopt on ere appl ca le s at ne t e ollo n standards and nterpretat ons ad een ss ed t e t ere not et e ect e e ecome e ect e or t e rst nanc al statements or report n per ods commenc n a ter t e stated operat e dates as deta led n t e ta le elo est ppsland ealt care ro ps as not and does not ntend to adopt t ese standards earl
Applicable for annual Standard/ Interpretation Summary reporting periods Impact on public sector entity financial statements beginning on Presentation of Financial Statements Accounting Policies, Changes in Accounting Estimates and Errors Amendments to Australian Accounting Standards – Definition of Material
Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current
124 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to t e nanc al tatements est ppsland ealt care ro p or t e nanc al ear ended ne
te l ssary erms an tyle n enti ns
tuarial ains r l sses n su erannuati n e ine bene it lans ct ar al a ns or losses are c an es n t e present al e o t e s perann at on de ned ene t l a l t res lt n rom • e per ence ad stments t e e ects o d erences et een t e pre o s act ar al ass mpt ons • t e e ects o c an es n act ar al ass mpt ons m rtisati n mort sat on s t e e pense c res lts rom t e cons mpt on e tract on or se o er t me o a non prod ced p s cal or ntan le asset ss iates ssoc ates are all ent t es o er c an ent t as s n cant n l ence t not control enerall accompan n a s are old n and ot n r ts o et een per cent and per cent m re ensi e result e net res lt o all tems o ncome and e pense reco n sed or t e per od t s t e a re ate o operat n res lt and ot er compre ens e ncome mmitments omm tments ncl de t ose operat n cap tal and ot er o tso rc n comm tments ar s n rom non cancella le contract al or stat tor so rces urrent rants mo nts pa a le or rece a le or c rrent p rposes or c no econom c ene ts o e al al e are rece a le or pa a le n ret rn e re iati n eprec at on s an e pense t at ar ses rom t e cons mpt on t ro ear or t me o a prod ced physical or intangible asset. This expense reduces the ‘net result for the year’.
e ti e interest met e e ect e nterest met od s sed to calc late t e amort sed cost o a nanc al asset or l a l t and o allocat n nterest ncome o er t e rele ant per od e e ect e nterest rate s t e rate t at e actl d sco nts est mated t re cas rece pts t ro t e e pected l e o t e nanc al nstr ment or ere appropr ate a s orter per od m l yee bene its e enses mplo ee ene ts e penses ncl de all costs related to emplo ment ncl d n a es and salar es r n e ene ts ta lea e ent tlements red ndanc pa ments de ned ene ts s perann at on plans and de ned contr t on s perann at on plans ratia e enses rat a e penses mean t e ol ntar pa ment o mone or ot er non monetar ene t e a r te o t at s not made e t er to ac re oods ser ces or ot er ene ts or t e ent t or to meet a le al l a l t or to settle or resol e a poss le le al l a l t or cla m a a nst t e ent t
West Gippsland Healthcare Group Annual Report 2019-20 125 Notes to the financial statements 30 June 2020
otes to the inancial tate ents est ippsland ealthcare roup for the financial year ended une
te l ssary erms an tyle n enti ns
inan ial asset financial asset is any asset that is • cash • an e uity instru ent of another entity • a contractual or statutory right – to recei e cash or another financial asset fro another entity or
– to exchange financial assets or financial liabilities ith another entity under conditions that are potentially fa orable to the entity or
• a contract that will or may be settled in the entity’s own equity instruments and is: – a non deri ati e for hich the entity is or ay be obliged to recei e a ariable nu ber of the entity’s own equity instruments; or – a deri ati e that ill or ay be settled other than by the exchange of a fixed a ount of cash or another financial asset for a fixed number of the entity’s own equity instruments. inan ial instrument financial instru ent is any contract that gi es rise to a financial asset of one entity and a financial liability or e uity instru ent of another entity. inancial assets or liabilities that are not contractual such as statutory recei ables or payables that arise as a result of statutory re uire ents i posed by go ern ents are not financial instru ents. inan ial liability financial liability is any liability that is • contractual obligation – to deli er cash or another financial asset to another entity or – to exchange financial assets or financial liabilities ith another entity under conditions that are potentially unfa orable to the entity or • A contract that will or may be settled in the entity’s own equity instruments and is: – a non deri ati e for hich the entity is or ay be obliged to deli er a ariable nu ber of the entity’s own equity instruments; or – a deri ati e that ill or ay be settled other than by the exchange of a fixed a ount of cash or another financial asset for a fixed nu ber of the entity’s o n e uity instru ents. or this purpose the entity’s o n e uity instru ents do not include instru ents that are the sel es contracts for the future receipt or delivery of the entity’s own equity instruments. inan ial statements co plete set of financial state ents co prises • alance sheet as at the end of the period • o prehensi e operating state ent for the period • state ent of changes in e uity for the period • ash flo state ent for the period • otes co prising a su ary of significant accounting policies and other explanatory infor ation • o parati e infor ation in respect of the preceding period as specified in paragraph of resentation of inancial tate ents and • state ent of financial position at the beginning of the preceding period hen an entity applies an accounting policy retrospecti ely or a es a retrospecti e restate ent of ite s in its financial state ents or hen it reclassifies ite s in its financial state ents in accordance ith paragraphs of resentation of inancial tate ents.
126 West Gippsland Healthcare Group Annual Report 2020 Notes to the financial statements otes to30 the June inancial 2020 tatements est ippsland ealthcare roup for the financial year ended une
te l ssary erms an tyle n enti ns
rants an t er trans ers ransactions in which one unit provides oods services assets or extin uishes a liability or labour to another unit without receivin approximately equal value in return. rants can either be operatin or capital in nature. hile rants to overnments may result in the provision of some oods or services to the transferor they do not ive the transferor a claim to receive directly benefits of approximately equal value. or this reason rants are referred to by the AA as involuntary transfers and are termed non reciprocal transfers. eceipt and sacrifice of approximately equal value may occur but only by coincidence. or example overnments are not obli ed to provide commensurate benefits in the form of oods or services to particular taxpayers in return for their taxes. rants can be paid as eneral purpose rants which refer to rants that are not sub ect to conditions re ardin their use. Alternatively they may be paid as specific purpose rants which are paid for a particular purpose and or have conditions attached re ardin their use. eneral ernment se t r he eneral overnment sector comprises all overnment departments offices and other bodies en a ed in providin services free of char e or at prices si nificantly below their cost of production. eneral overnment services include those which are mainly non mar et in nature those which are lar ely for collective consumption by the community and those which involve the transfer or redistribution of income. hese services are financed mainly throu h taxes or other compulsory levies and user char es. ntan ible r u e assets efer to produced assets in this lossary. ntan ible n n r u e assets efer to non produced asset in this lossary. nterest e ense osts incurred in connection with the borrowin of funds includes interest on ban overdrafts and short term and lon term liabilities amortisation of discounts or premiums relatin to liabilities interest component of leases repayments and the increase in financial liabilities and non employee provisions due to the unwindin of discounts to reflect the passa e of time. nterest in me nterest income includes unwindin over time of discounts on financial assets and interest received on ban term deposits and other investments. n estment r erties nvestment properties represent properties held to earn rentals or for capital appreciation or both. nvestment properties exclude properties held to meet service delivery ob ectives of the tate of ictoria. int rran ements A oint arran ement is an arran ement of which two or more parties have oint control. A oint arran ement has the followin characteristics: • he parties are bound by a contractual arran ement. • he contractual arran ement ives two or more of those parties oint control of the arran ement A oint arran ement is either a oint operation or a oint venture. Liabilities iabilities refers to interest bearin liabilities mainly raised from public liabilities raised throu h the reasury orporation of ictoria leases and other interest bearin arran ements. iabilities also include non interest bearin advances from overnment that are acquired for policy purposes.
West Gippsland Healthcare Group Annual Report 2020 127 Notes to the financial statements 30 June 2020
te l ssary erms an tyle n enti ns
et a quisiti n n n inan ial assets r m transa ti ns et result those that are classified as ‘other comprehensive income’. et rt n inan ial assets ‘financial assets’. n r u e assets n r it instituti n ayables r u e assets ubli inan ial r rati n se t r ubli n n inan ial r rati n se t r
128 West Gippsland Healthcare Group Annual Report 2019-20 Notes to the financial statements 30 June 2020
otes to the inancial tatements est ippsland ealthcare ro p for the financial ear ended ne
te l ssary erms an tyle n enti ns
e ei ables ncl des amo nts o in from overnment thro h appropriation receiva le short term and lon term trade credit and acco nts receiva le accr ed investment income rants ta es and interest receiva le. ales s an ser i es efers to income from the direct provision of oods and services and incl des fees and char es for services rendered sales of oods and services fees from re lator services and or done as an a ent for private enterprises. t also incl des rental income nder operatin leases and on prod ced assets s ch as ildin s and entertainment t e cl des rent income from the se of non prod ced assets s ch as land. ser char es incl des sale of oods and services income. u lies an ser i es pplies and services enerall represent cost of oods sold and the da to da r nnin costs incl din maintenance costs inc rred in the normal operations of est ippsland ealthcare ro p. a ati n in me Taxation income represents income received from the State’s taxpayers and includes: • pa roll ta land ta d ties levied principall on conve ances and land transfers
• am lin ta es levied mainl on private lotteries electronic amin machines casino operations and racin • ins rance d t relatin to comp lsor third part life and non life policies • ins rance compan contri tions to fire ri ades
• motor vehicle ta es incl din re istration fees and d t on re istrations and transfers
• levies incl din the environmental lev on stat tor corporations in other sectors of overnment and • other ta es incl din landfill levies license and concession fees. ransa ti ns evised ransactions are those economic flo s that are considered to arise as a res lt of polic decisions s all an interaction et een t o entities m t al a reement. he also incl de flo s in an entit s ch as depreciation here the o ner is sim ltaneo sl actin as the o ner of the depreciatin asset and as the cons mer of the service provided the asset. a ation is re arded as m t all a reed interactions et een the overnment and ta pa ers. ransactions can e in ind e. . assets provided iven free of char e or for nominal consideration or here the final consideration is cash. tyle n enti ns i res in the ta les and in the te t have een ro nded. iscrepancies in ta les et een totals and s ms of components reflect ro ndin . ercenta e variations in all ta les are ased on the nderl in nro nded amo nts. he notation sed in the ta les is as follo s ero or ro nded to ero . ne ative n m ers ear period ear period
West Gippsland Healthcare Group Annual Report 2019-20 129 Disclosure Index
The Annual Report of the West Gippsland Healthcare Group 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.
Ministerial Directions Legislation Requirement Page .Page
Charter and purpose Legislation FRD 22H Manner of establishment and the relevant FRD 22H Application and operation of Freedom of Ministers ...... 2, 12 Information Act 1982...... 50 FRD 22H Purpose, functions, powers and duties...... 12 FRD 22H Compliance with building and maintenance provisions of Building Act 1993...... 50, 51 FRD 22H Nature and range of services provided...... 10 FRD 22H Application and operation of Protected FRD 22H Activities, programs and achievements for the Disclosure 2012...... 51 reporting period...... 4, 5, 16-21 FRD 22H Statement on National Competition Policy...... 50 FRD 22H Significant changes in key initiatives and expectations for the future...... 4-5 FRD 22H Application and operation of Carers Recognition Act 2012...... 51 Management and structure FRD 22H Summary of the entity’s environmental FRD 22H Organisational structure...... 15 performance ...... 48-49 FRD 22H Workforce data/ employment and conduct FRD 22H Additional information available on request...... 53 principles...... 23
FRD 22H Occupational Health and Safety...... 24 Other relevant reporting directives FRD 25D Local Jobs First Act disclosures...... 50 Financial information SD 5.1.4 Financial Management Compliance attestation.. 55 FRD 22H Summary of the financial results for the year..... 47 SD 5.2.3 Declaration in Report of Operations...... 55 FRD 22H Significant changes in financial position during the year...... 47 Attestations FRD 22H Operational and budgetary objectives and Attestation on Data Integrity...... 55 performance against objectives...... 47 Attestation on managing Conflicts of Interest...... 55 FRD 22H Subsequent events...... 41, 42, 44 Attestation on Integrity, fraud and corruption...... 55 FRD 22H Details of consultancies under $10,000...... 52 Other reporting requirements FRD 22H Details of consultancies over $10,000...... 52 • Reporting of outcomes from Statement of Priorities FRD 22H Disclosure of ICT expenditure...... 51 2019-20 ...... 39-42 • Occupational Violence reporting...... 24 • Reporting obligations under the Safe Patient Care Act 2015 ...... 51 • Reporting of compliance regarding Car Parking Fees (if applicable)...... N/A
130 West Gippsland Healthcare Group Annual Report 2020 Photo: WGHG’s first patient in the new Short Stay Unit was James Wilson pictured with WGHG Volunteer Carol Mallows and ED Nurse Unit Manager Sue Colby.
West Gippsland Healthcare Group Annual Report 2020 131 HEAD OFFICE West Gippsland Hospital 41 Landsborough Street Warragul, Victoria 3820 Phone: 03 5623 0611 Fax: 03 5623 0896 Email: [email protected]