Cobram District Health
ANNUAL REPORT 2018/19 Vision Values Integrity To improve the health of We are fair, consistent, and honest in all our actions. We do the right thing. our community through Respect the provision of high We listen to others and accept differences. We value diverse opinions.
quality, integrated health Collaboration We commit to a common purpose and encourage services that meet the participation and sharing of ideas.
needs of the individual Excellence We have a customer focus and always strive to and community. improve. We set a high standard.
2 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Contents Introduction 3 About Cobram District Health 4 CEO and Chair Message 6 Director Medical Services Message 8 Board of Management 10 Leadership Team 11 Board and Committees 12 Nathalia District Hospital Financial Statements Highlights 13 Financial Year Ended 30 June 2019
Board Member's, Accountable Officer's and Chief Finance & Accounting Workforce Data 16 Officer's Declaration Organisation Chart 17 The attached financial statements for Nathalia District Hospital have been prepared in accordance with Direction 5.2 of the Standing Directions of the Assistant Treasurer under the FinancialManagement Act 1994, Statutory Requirements 18 applicable Financial Reporting Directions (FRDs), Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. Occupational Health and Safety 18 We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly Occupational Violence 18 the financial transactions during the year ended 30 June 2019 and the financial position of Nathalia District INTRODUCTIONHospital at 30 June 2019. Compliance with the Building Act 19 At the time of signing, we are not aware of any circumstance which would render any particulars included in In theaccordance financial statements with to be themisleading Financial or inaccurate. Management Act 1994, I am pleased Occupancy Permits and Certificates of to Wepresent authorise the attached Report financial of statementsOperations for issue for on the Cobram 27 August 20 District19. Health for the year Final Inspection 19 ended 30 June 2019. Building Works 19 Essential Safety Measures 19 �� Freedom of Information 19 Dale Brooks Peter Hutchinson MrBoard Dale Chair Brooks, Board ttChairChief Executive Officer Chief Finance Officer Safe Patient Care Act 19 27NCN August Health 2019 NCN Health GV Health / Nathalia 27 August 2019 27 August 2019 27 August 2019 Carers Recognition Act 19 ANNUAL REPORTING Protected Disclosure Act 20 Cobram District Health reports on its annual performance in two separate Competitive Neutrality 20 documents each year – the Annual Report and Quality Account. Local Jobs First Policy 20 This annual report fulfils the statutory reporting requirements for governance. Environmental Performance 20 The quality account reports on quality, safety, risk management and Consultancies 20 performance improvement matters. Details of Information and Communication Cobram District Health (CDH) is incorporated as a public hospital under the Technology (ICT) expenditure 21 Heath Services Act 1988 and came into operation on 25 January 1949. The name was subsequently changed to Cobram District Health on 1 January 2009. Additional Information 21 Cobram District Heath is established under the Health Services Act 1988. The Part A. Statement of Priorities – Outcomes 22 purpose, functions, powers and duties of Cobram District Health are described Part B. Performance Priorities 2018/19 30 in the 2015-2018 Strategic Plan and in the By-Laws of the organisation. Part C. Activity and Funding 2018/19 32 RELEVANT MINISTER Attestations 33 The responsible Ministers during the reporting period were: Five Year Financial Summary 34 The Honourable Jill Hennessy, Minister for Health and Minister for Ambulance Disclosure Index 35 Services 01/07/2018 - 29/11/2018 Financial Report 37 Jenny Mikakos, Minister for Health and Minister for Ambulance Services 29/11/2018 - 30/06/2019 Martin Foley, Minister for Mental Health 01/07/2018 - 30/06/2019
The Hon Luke Donnellan MP, Minister for Disability, Ageing and Carers 29/11/2018 - 30/06/19
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 3 SERVICES PROVIDED
About Cobram Cobram District Health provides the following services to our community: District Health • 12 Acute beds; • 2 Transitional Care beds; • 30 High Care Residential Aged Care beds; • Urgent Care Centre; Cobram District Health provides • Operating Theatre, performing minor elective services to the people of Cobram procedures; • Palliative Care; and surrounding areas of Barooga, • Onsite x-ray and ultrasound services; Strathmerton and Katamatite • District Nursing Service; • Meals on Wheels provided by our catering along with several southern New department in partnership with Moira Health South Wales towns, which have Care; • Medical Clinic with General Practitioners, a combined catchment of around practice nurses, midwifery service and visiting specialists; and 12,000 people. • Dental Clinic with senior dentists, a graduate dentist and University of Melbourne dental students providing public and private dentistry.
Cobram District Community Health Centre provides the following services: • Community Nursing • Physiotherapy • Diabetes Education • Occupational Therapy • Health Promotion • Dietitian Services • Speech Therapy • Chronic Disease Management • Visiting Services • Home Care Packages
Moira Community Rehabilitation Centre is based in Cobram with services provided to Nathalia, Numurkah and Yarrawonga.
TOTAL NUMBER OF BEDS
Facility 2015/16 2016/17 2017/18 2018/19
Cobram District 44 44 44 44 Health
4 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 5 CEO and Chair Message
Our active Consumer Advisory Committee focused on diversity, disability, quality and safety across the organisation during the year and undertook an accessibility audit to improve access in and around Cobram District Health.
FUNDING AND CAPITAL UPGRADES Planning and detailed design for the upgrade of Irvin House took place in 2018/19. The upgrade works include an extension to the existing facility and the creation of seven his year has been a busy year for Cobram District new single rooms with ensuites. The project also includes Health as we continued to deliver high quality building an internal courtyard with garden and creating a Tservices and work in close partnership with a range of dementia-friendly environment. The project is funded by a organisations to meet the needs of our local community. $1.6 million grant through the Victorian Government’s Rural Health Infrastructure Fund. Additional funding of $290k was ENHANCING OUR SERVICES secured to upgrade six double rooms to single rooms. During the year, Cobram District Health established a A brand new, state of the art kitchen will be built clinical governance system focusing on quality, safety and at Cobram District Health, through a Rural Health continuous improvement. Infrastructure Fund grant. We maintained accreditation for the health service and A mechanical and electrical upgrade took place at Cobram successfully achieved accreditation for the Commonwealth in 2018/19, including the replacement of the boiler Home Support Program. We also had a support visit from system, installation of new air conditioning into Irvin House, the aged care quality agency and maintained our aged and updated air conditioning and heating throughout the care accreditation, passing successfully. hospital. The main switchboard was upgraded to replace the old system and planning for the upgrade of the wireless Cobram District Health continued to have a busy year in the Information Technology system took place which will enable Urgent Care Centre with 4,762 attendances in 2018/19. wifi access across the whole facility. Telehealth was introduced in Urgent Care this year, providing enhanced access to services. The Medical Clinic also continues to be busy and provides a great service to patients. PARTNERSHIPS We appreciate the support of the doctors and nurses who In 2018/19, Cobram District Health worked together with provide excellent care to our growing community. Numurkah District Health Service and Nathalia District Hospital The Dental Clinic provides a valuable public and private under a shared services model across the three organisations. dental service. We continued a very successful partnership Community engagement took place on the proposal to join with Goulburn Valley (GV) Health Dental Service and the three health services as ‘NCN Health’ in 2018/19 students who gained valuable experience working at including: 165 attendees at ‘World Café Style’ engagement Cobram. We also continued the new graduate dental sessions; 72 survey responses; meetings and written program. Both services are well supported by our senior submissions. Communication also included newsletters, dentists. letters, advertising, publicity, websites and facebook. We thank the community for their valuable input into the proposal. An independent Due Diligence Report found no major issues of concern on the proposal to join services, which will improve access to care for local communities. The proposal was endorsed by the three Boards in April and approved by the Minister for Health in June 2019. Mental health services were increased through the ongoing partnership between Cobram District Health, Numurkah District Health Service, Nathalia District Hospital and Yarrawonga Health. New Psychological Therapy Services and Mental Health Clinical Care Coordination for residents of Moira Shire have been funded by Murray Primary Health Network. Cobram District Heath continued to participate in the Respiratory Project – a grant funded partnership project that
6 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 aims to improve lung health and reduce avoidable hospital ACKNOWLEDGING OUR SUPPORTERS admissions due to lung disease. It focuses on providing pulmonary rehabilitation in four health services: Cobram, We would like to thank volunteers for their valuable Yarrawonga, Nathalia and Numurkah. contribution to the health service, residents, patients and the community throughout the year. We continued to strengthen partnerships, building on the previous year and appreciate the funding contributions to We thank the Auxiliaries for their generous donations continue providing health care in local communities. supporting the bed replacement program. We also purchased medical equipment and theatre equipment with Stand By Me: Cobram District Health formed a partnership with the funding. We thank you for providing ongoing support to Cobram Secondary School for a youth mental health project the health service through time and generosity. ‘Stand By Me’. We co-hosted a session with the school and supported young people with community-based information. Cob-Cab: Cobram District Health has been working in partnership with the Cobram Community Centre and received funding from Bendigo Bank through the community enterprise funding and donations fromNath theali Lionsa District Club Hospital - towards the purchase of a bus for a project called ‘Cob- Cab’. The project will provide transportFinancial for residents Statements of Irvin House and local community groupsFi nancialto attend communityYear Ended 30 June 2019 events and other outings. The project is an exciting initiative Board Member's, Accountable Officer's and Chief FinanNaceth a&li aA Dcistrictcounting Hospital to improve social connectedness in our local community. Officer's Declaration Financial Statements Financial Year Ended 30 June 2019 OUR WORKFORCE The attached financial statements for Nathalia District Hospital have beenBoard prepared Mem in baccer's,ordance Acco withunta ble Officer's and Chief Finance & Accounting We would like to acknowledge ourDirection valued 5. staff2 of forthe theirStanding Directions of the Assistant Treasurer under theOfficer's Financial DeclaraManagement tion Act 1994, applicable Financial Reporting Directions (FRDs), Australian Accounting Standards including Interpretations, hard work and dedication to providing safe and quality and other mandatory professional reporting requirements. The attached financial statements for Nathalia District Hospital have been prepared in accordance with health care for the community. Direction 5.2 of the Standing Directions of the Assistant Treasurer under the FinancialManagement Act 1994, We further state that, in our opinion, the information set out in the comprehensiveapplicable operatingFinancial Repo statement,rting Directions (FRDs), Australian Accounting Standards including Interpretations, A total of 18 employees were recognised for their years of ACKNOWLEDGING OURand BOARD other mandato ry professional reporting requirements. balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly service, reaching 10, 15, 20 andthe 35 financial year milestones transactions in during the year ended 30 June 2019 and the financial position of Nathalia District We wish to thank Board Directors for Weworking further statetogether that, in our opinion, the information set out in the comprehensive operating statement, 2018/19. Hospital at 30 June 2019. cohesively throughout the year to drivebalance positive sheet, outcomes statement forof changes in equity, cash flow statement and accompanying notes, presents fairly We continued to strengthen our workforce and leadership the financial transactions during the year ended 30 June 2019 and the financial position of Nathalia District At the time of signing, we are notthe aware community. of any circumstance which wouldHospital render at any 30 Juparticularsne 2019. included in capabilities through the ‘Caring Together’the financial program statements in to be misleading or inaccurate. partnership with the Studer Group. This is the final annual report of CobramAt the Districttime of signing,Health. we I are not aware of any circumstance which would render any particulars included in We authorise the attached financialthank statements the Board for Chairissue onand the Directors 27 August andthe 20 financial look19. forward statements to to be misleading or inaccurate. Workforce development also continued with a number continuing our strong partnership withWe the au communitythorise the attached to meet financial statements for issue on the 27 August 2019. of training programs. This year we particularly focused local health needs. on Family Violence training, improving awareness of Occupational Violence and Aggression prevention and ongoing opportunities for clinical staff to maintain high standards of skill and knowledge. �� �� Dale Brooks DalePeter Brooks Hutchinson Peter Hutchinson We welcomed Dr Ka Chun Tse as the Director of Medical Board Chair JacquettChief Phillips Executive OAM Officer DaleBoardChief Brooks Chair Finance Officer ttChief Executive Officer Chief Finance Officer Services and we thank Dr Patrick Giddings for his work in Chief Executive Officer BoardNCN Health Chair NCN Health GV Health / Nathalia NCN Health this role over the last few years. NCN Health 27 GVAugust Health 2019 / Nathalia 27 August 2019 27 August 2019 27 August 2019 27 August 2019 27 August 2019 FINANCIAL SUSTAINABILITY Cobram District Health continued to work towards a sustainable financial position during the year.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 7 Director Medical Services Message
n the past financial year, Cobram The appointment of a single Director of Medical Services District Health has witnessed across the three health services has started the process Ichallenges to the traditional model of of aligning medical workforce management and clinical local General Practitioners providing governance processes. Examples include movements cover 24 hours a day, seven days towards a standard medical and dental credentialling a week (24/7) to our Urgent Care process (supported by electronic credentialling) and internal Centre, Acute Ward and residential clinical review mechanisms. aged care. While 24/7 local General Practitioner cover has been Nathalia, Numurkah and Cobram are leading the maintained for the Acute Ward and development of a discussion paper for the Goulburn residential aged care, from 1 July 2019 the health service Regional Health Partnership, on challenges facing Urgent is moving to a model for the Urgent Care Centre where Care Centres in our region (and indeed the whole State), medical cover is provided through a combination of local and potential solutions to pursue in collaboration with the doctors and a telehealth service of emergency medicine Department of Health and Human Services, Safer Care specialist physicians called My Emergency Dr. We are Victoria, Ambulance Victoria, the National Rural Health grateful to Murray Primary Health Network for offering Commissioner and other key agencies. We have also funding to help support My Emergency Dr use in the taken a proactive role in the Goulburn Regional Health 2019/20 financial year. Partnership, with a telehealth trial from Goulburn Valley Health Emergency Department, planning for a Consumers During this period, we have welcomed Dr Souravi Saha to a and Clinicians Forum, and participation in its Quality and General Practice Registrar training position in Cobram. We Safety and Access and Flow Subcommittees. have farewelled Doctors Derrick Pang and Yue Chen from the Visiting Medical Officers group, with Derrick remaining in The three health services have also commenced participation Cobram and Yue moving to Melbourne. We look forward in a Hume Region Rural Generalist Training Capacity to continuing to work with Derrick as a local General Project, which will be completed in conjunction with the Practitioner, and wish Yue the very best for the future. Grampians Region. This project will determine opportunities to improve rural General Practice training in the Hume and Together with Yarrawonga Health, Nathalia District Hospital Grampians regions. and Numurkah District Health Service, we have also commenced two-monthly meetings of the Moira Education Dr Ka Chun (KC) Tse and Research Committee. To date, this Committee has Director Medical Services seen the development of a Moira-wide research project to understand the factors affecting adherence to national evidence-based practice guidelines for antibiotic use in the four health services, and is sharing clinical education and research tools.
Preparation for the voluntary amalgamation of Nathalia District Hospital, Cobram District Health and Numurkah District Health Service into NCN Health has provided multiple opportunities for collaboration among the three health services.
A regional Urgent Care Centre enhancement project continued across the three hospitals plus Kyabram District Health Service. Joint clinical review meetings have continued and with the requirement to provide additional support to local doctors who cover Urgent Care Centres, telehealth options (to Goulburn Valley Health and a private emergency medicine specialist telehealth provider My Emergency Dr) have been implemented at Numurkah, and are planned for Cobram and Nathalia.
8 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 9 Board of Management
Cobram District Health Board Board Member – Alex Monk of Management members are Board Member since 2013 Term Expires: 30 June 2019 appointed for a three-year term Committees: Clinical Governance by the Governor-in-council, upon recommendation of the Minister Board Member – Pat West Board Member since 2015 for Health. There are six Board of Term Expired: 30 June 2019 Management positions filled in the Committees: Clinical Governance 2018-19 financial year Board Member – Kade Beasley Board Member Since 2017 Chair – Dale Brooks Term Expired: 30 June 2019 Board Member since 2012 Committees: Finance, Audit and Risk Term Expired: 30 June 2019 Committees: Finance, Audit and Risk & Consumer Advisory. Board Member – Sarah Davies Board Member Since 2017 Vice President – Paul Ukich Term Expires: 30 June 2019 Board Member since 2007 Committees: Clinical Governance Term Expired: 30 June 2019 Committees: Finance, Audit and Risk
10 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Leadership Team
CHIEF EXECUTIVE OFFICER
Jacque Phillips OAM The Chief Executive Officer has an extensive background in health and government services with over 20 years in the Goulburn Valley. She has an Executive Masters in Public Administration from Monash University, as well as qualifications in Business/Human Resources and Nursing.
DIRECTOR CLINICAL SERVICES
Carolyn Hargreaves The Director of Clinical Services has been a leader in health care most of her professional career. She has qualifications in Nursing, Critical Care and Leadership.
DIRECTOR OF MEDICAL SERVICES
Dr Ka Chun Tse The Director of Medical Services joined the team at Cobram District Health in 2018 as Director of Medical Services. He is a Medical Administrator with extensive experience in clinical leadership, governance and administration.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 11 Board and Committees
ADVISORY AND SUBCOMMITTEES COMMITTEE NO. MEETINGS There are a number of Advisory and Subcommittees ATTENDANCE ATTENDED (7) reporting to the Board: Clinical Governance Committee • Finance, Audit and Risk Committee Pat West 7 • Clinical Governance Committee Sarah Davies 7 • Consumer Advisory Committee Alex Monk 6 • Credentialing and Privileging Committee
AUDITORS
• Johnsons MME (Victorian Auditor General’s COMMITTEE NO. MEETINGS representative) ATTENDANCE ATTENDED (10) • HLB Mann Judd (Internal Auditor) Finance, Audit & Risk Committee FINANCE, AUDIT AND RISK Dale Brooks 8 COMMITTEE Paul Ukich 10 Kade Beasley 10 • Mrs Jennie Gould (Independent Chair) • Mr Paul Ukich • Mrs Jacquie Ryan (Independent member) • Mr Dale Brooks COMMITTEE NO. MEETINGS • Mr Kade Beasley ATTENDANCE ATTENDED (8) Consumer Advisory Committee IN ATTENDANCE Dale Brooks 3 • Mrs Jacque Phillips (Chief Executive Officer) • Mrs Carolyn Hargreaves (Director of Clinical Services) • Mrs Fiona Luke (Human Resources and Support Services Manager) COMMITTEE NO. MEETINGS • Ms Tania Hill (Executive Services Manager) ATTENDANCE ATTENDED (3) Consumer Advisory Committee BOARD NO. MEETINGS ATTENDANCE ATTENDED (11) Dale Brooks 0
Dale Brooks 8 Paul Ukich 3
Paul Ukich 11
Kade Beasley 11
Sarah Davies 10
Alex Monk 5
Pat West 11
12 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Highlights
NCN HEALTH – NATHALIA COBRAM MENTAL HEALTH SERVICES NUMURKAH PARTNERSHIP Mental health services were increased through a partnership between Cobram District Health, Numurkah District Health In 2018/19, Cobram District Health worked together with Service, Nathalia District Hospital and Yarrawonga Health. Numurkah District Health Service and Nathalia District New Psychological Therapy Services and Mental Health Hospital under a shared services model across the three Clinical Care Coordination for residents of Moira Shire have organisations. been funded by Murray Primary Health Network. Funding During the year, a second stage of community engagement has continued for this valued service. took place on the proposal to join the three health services as ‘NCN Health’ including: 165 attendees at ‘World Café IRVIN HOUSE AGED CARE Style’ engagement sessions held in Nathalia, Cobram and The final stages of planning for the upgrade of Irvin House Numurkah; 72 survey responses; 506 engagements on took place in 2018-19 and works are underway following Facebook; 10 meetings with community groups, staff and consultation with residents, families and staff. Finalising detailed individuals; and 8 submissions received. Newsletters were design and going to tender is the focus in coming months published, 150 stakeholder letters were sent, advertising was undertaken and media publicity was utilised to reach The upgrade works include an extension to the existing facility communities. The dedicated NCN website had 591 views and the creation of seven new single rooms with ensuites. and the three health services provided information on The project also includes building an internal courtyard (with the websites and facebook pages. This second stage of garden) and creating a dementia-friendly environment. consultation added to the feedback collected in 2017/18. The project is funded by a $1.6 million grant through the An independent Due Diligence Report was carried out, Victorian Government’s Rural Health Infrastructure Fund. which found no major issues of concern on the proposal In the next stage, the plan is to convert six double rooms to join services - this included a comprehensive assessment into single rooms, so residents will have greater privacy. A of clinical, financial, governance, regulatory and human funding submission was made to the Department of Health resource matters. and Human Services for the renovation of the double rooms. The proposal to join services was unanimously supported by We received $290k from State Government. the three Boards following the consultation, due diligence report and careful consideration of the benefits and issues - with focus on improving health care for local communities. We thank the community for their valuable input into the proposal, which has now been approved by the Minister for Health.
RESPIRATORY PROJECT Cobram District Health is part of the Moira Health Services Healthy Lung Project. Did you know that 1 in 7 Australians over the age of 40 have Chronic Obstructive Pulmonary Disease (COPD) - the second leading cause of preventable hospitalisations in Australia. Early diagnosis can lead to better outcomes. The Moira Health Services Healthy Lungs Project makes testing more readily available. A spirometer is a quick and easy test to measure lung function. It measures the amount of air people breathe in and out of their lungs. This can help monitor changes in lung capacity and aid in the early diagnosis of lung disease. A referral can be arranged through a GP, specialist, allied health professional or a registered nurse. Funding has continued for this important project.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 13 Highlights continued
KITCHEN CHILDREN’S HEALTH A brand new, state of the art kitchen will be built at Cobram Cobram District Health is working on a cutting edge project District Health, through a Rural Health Infrastructure Fund with Deakin University to improve the physical health and grant. The kitchen will continue to provide cooked meals on wellbeing of children in our area. The project, called site to residents and inpatients across the health service. Staff ‘RESPOND’ began in 2016 with 376 children in the Moira are participating in the planning and look forward to an region participating in a health related survey, facilitated improved facility to work in plus brand new equipment. by Deakin University. The surveys will be repeated in 2019 along with workshops. The purpose of the project is to develop a map of the causes of physical activity and healthy eating within the Ovens Murray/Goulburn region of Victoria, and support community members to collaboratively discuss and plan initiatives to improve the health of children within our community. The initial workshop brought representatives from Council, schools, childcare and many other local organisations together to begin the mapping process.
MECHANICAL AND ELECTRICAL UPGRADE A mechanical upgrade took place at Cobram, including the replacement of the boiler system, installation of new air conditioning into Irvin House, and updated air conditioning and heating throughout the hospital. The replacement of the air conditioning system at Irvin House enables each resident In May 2019 we started our first of 7 kindergarten children to control the temperature in their rooms. The entire main visits to our dental clinic. The children get to learn what switchboard was also upgraded to replace the old system. happens at a dentist visit and meet our lovely dental students and nurses. INFORMATION TECHNOLOGY Smiles 4 Miles is Planning for the upgrade of the wireless Information an evidence-based Technology system took place which will enable wifi access program implemented across the whole facility. The installation will be occurring in early childhood over coming months. services to improve the oral health of pre- FAMILY VIOLENCE TRAINING AND school aged children RESPONSE and their families. Smiles 4 Miles was Family violence is a serious health issue that has a profound developed by Dental impact on the psychological and physical well-being Health Services Victoria of those affected. Cobram District Health is currently in 2004 in response implementing the Victorian Government’s Strengthening to the alarming rates Hospital Responses to Family Violence (SHRFV) model across of tooth decay experienced by young children in Victoria. the organisation. The organisation is strengthening the The program uses a whole service approach by engaging capacity of health care professionals to identify and support children, their families, educators, staff, management and people to help in the prevention of and response to family the broader community to create a healthy environment. violence. Policies and procedures have been written, and Smiles 4 Miles has three key messages; Drink well, Eat well staff training has been undertaken. Cobram District Health and Clean well. is committed to supporting our community and offering safe haven to anyone experiencing family violence.
14 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 DEMENTIA AWARENESS AND TRAINING Cobram District Health partnered with Dementia Australia to run workshops for families, residents, volunteers and staff to help them better understand how to care for the growing number of Australians suffering from a form of Dementia. The second largest cause of death for Australians, Dementia, refers to a group of cognitive conditions such as Alzheimer’s, Vascular dementia, Dementia with Lewy bodies or Alcohol related dementia to name a few. Dementia education was taken up by staff and the families, volunteers and carers workshop was well attended with people learning how to engage with someone with dementia, strategies to have a “good visit” and how to recognise the behaviour changes that are caused by the underlying disease. Virtual reality technology also gave staff a chance to experience first hand what it feels like to have dementia. The Dementia project ran for two months providing an opportunity for everyone to gain skills and build awareness.
MEDICAL CLINIC CHECK IN KIOSK In response to community feedback, new electronic ‘check in’ kiosks were commissioned for the Medical Clinic and are helping with congestion at the front desk. People who have already made an appointment can register at the kiosks next to the front door in the foyer and take a seat. We have improved our administration processes to support our doctors to keep appointments on schedule. Our doctors, practice nurses and specialists service over 30,000 appointments per year and we aim to provide an excellent health experience for every consumer every time.
NAIDOC WEEK - JULY 2018 Aunty Faye Lynam, Yorta Yorta Elder, came with her family bringing gifts of story, dance, music and food to help us celebrate our first ever NAIDOC Week at Cobram District Health. About 70 staff, residents, friends and visitors sat spellbound as Aunty Faye traced the journey of her life. After this we were treated to the first ever performance by her grandchildren to whom she has been teaching traditional dance. Strathmerton artist and didgeridoo player Greg Robinson played as Jaella, Paiton and Ethan showed us their kangaroo, emu and other dances that they have been learning. We finished with a barbecue and shared Johnny cakes, a flat bread damper cooked over the coals. FACEBOOK PAGE Cobram District Health launched a Facebook page in February 2019, enhancing communication and engagement with the community.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 15 Workforce Data
Ancillary Staff (Allied Health) 23.60
Hospital Medical Officers 1.35
Nursing 69.68
Hotel & Allied Health Services 23.62
Administration & Clerical 21.87
Labour Category JUNE Current Month FTE Average Monthly FTE 2018 2019 2018 2019 Nursing 65.17 68.96 63.80 69.68 Administration and Clerical 23.75 20.75 23.31 21.87 Medical Support 2 0 2 0 Hotel and Allied Services 19.42 22.15 18.94 23.62 Hospital Medical Officers 1 1.4 1 1.35 Sessional Clinicians 0 0 0 0 Ancillary Staff (Allied Health) 13.35 12.85 12.31 11.59 Total 124.69 126.11 121.36 128.11
The FTE figures reported in the table are those excluding CODE OF CONDUCT overtime. These also do not include contracted staff (e.g. All Cobram District Health staff are required to abide by the agency nurses, fee for service, visiting medical officers) who Code of Conduct, which is based on the Code of Conduct are not reported as employees for this purpose. for Victorian Public Sector Employees. The data reported in this table is consistent with that provided in the Minimum Dataset.
EMPLOYMENT AND CONDUCT PRINCIPLES Cobram District Heath is committed to the application of public sector employment principles. It has reviewed employment processes to ensure that employment decisions are based on merit, employees are treated fairly and reasonably, equal employment opportunities are provided and employees have a reasonable avenue to redress unfair or unreasonable treatment.
16 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Organisational Structure
Chief Executive Officer
Executive Services Manager Community Engagement Officer
Director of Medical Director of Clinical Director of People Management Director of Services Services and Culture Accountant Corporate Services
Visiting NUM People and Finance Maintenance Medical After - Actue Culture Clerk Officers Hours Manager and Dentists Managers Environmental NUM Information Services Team - -Theatre Actue Specialists Technology Lead Education NUM NUM - Irvin Payroll Catering - Actue Infection House Services Team Control OH&S Lead NUMNUM Pharmacy - Community- Actue Health Central Supply Stores Admin Coordinator Quality & Team Lead Safety NUM - Medical Dental Clinic
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 17 Statutory Requirements
OCCUPATIONAL HEALTH AND SAFETY Cobram District Health continues to demonstrate its commitment to Occupational Health and Safety. Cobram District Health management endeavours to ensure all people – staff, volunteers, contractors and the general public, have the highest level of protection against risks to health and safety. Cobram District Health also recognises those who manage or control events that create health and safety risks are responsible for eliminating or minimising potential damage as a result of those risks. Cobram District Health is proactive in promoting health and safety in the workplace through education, development of policies and procedures and staff training. Cobram District Health ensures that consultation, information and ideas about actual risks and potential risks and how to control them is shared and employees are actively encouraged to highlight any actual or potential safety issues through the Health and Safety Representative in each department. Health and Safety Representatives receive annual training and attend monthly Safe Practice and Environment Committee meetings. Cobram District Health acknowledges that improvement of workplace safety standards is best achieved through consultation, participation and training, and will continue to improve its performance in compliance with all relevant codes, legislation and standards.
Number of reported hazards/incidents for the year 462 incidents Number of ‘lost time’ standard claims for the year 3,840.25 hours lost Average cost per claim for the year (including payments to date and an estimate $109,535.64 of outstanding claim costs as advised by WorkSafe) Two Years of data on these indicators 2018 – 1283 hours lost 2018 – $40,238.44
2017 – 176 hours lost 2017 – $7,093.00 Fatalities Nil
OCCUPATIONAL VIOLENCE The following statistics have been collated for Occupational Violence in the workplace at Cobram District Health:
Occupational Violence Statistics 2018/19 1. Workcover accepted claims with an occupational violence cause per 100 FTE Nil 2. Number of accepted Workcover claims with lost time injury with an occupational violence Nil cause per 1,000,000 hours worked. 3. Number of occupational violence incidents reported 48 4. Number of occupational violence incidents reported per 100 FTE 38.06 5. Percentage of occupational violence incidents resulting in a staff injury, illness or condition 4
For the purposes of the above statistics the following definitions apply: Occupational violence - any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment. Incident - occupational health and safety incidents reported in the health service incident reporting system. Code Grey reporting is not included. However, if an incident occurs during the course of a planned or unplanned Code Grey, the incident must be included. Accepted Workcover claims - accepted Workcover claims that were lodged in 2018/19. Lost time - is defined as greater than one day. Injury, illness or condition - This includes all reported harm as a result of the incident, regardless of whether the employee required time off work or submitted a claim.
18 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 COMPLIANCE WITH THE BUILDING A person can make a request, or can authorise another ACT person (for example, a solicitor) to make a request on their behalf. The Minister for Finance has issued instructions in accordance with the Building Act 1993 stating that all public service Important information regarding a Freedom of Information entities ensure buildings under their control are: safe and (FOI) request. fit for occupation, comply with statutory requirements and • The person the requested information relates are maintained to a standard where they remain fit for too, MUST sign the application form. occupancy. Cobram District Health reports annually on the measures taken to comply with the provision of the Act. • An application fee applies to all requests. $29.60 Cobram District Health remains compliant with the building • Note: Centrelink card holders are exempt from all fees and maintenance provisions of the Building Act 1993. and charges on production of a copy of their signed Centrelink card. OCCUPANCY PERMITS AND • To avoid delays, the application fee should CERTIFICATES OF FINAL INSPECTION accompany this request. Cobram District Health’s Occupancy Permits and Certificates • Additional costs may be incurred for research, copying of Final Inspection are all current. and postage of documents. • FOI requests may take up to 45 working days to BUILDING WORKS process. Nil. • All applications should be addressed to the FOI Officer. ESSENTIAL SAFETY MEASURES For further information or assistance please contact the FOI Officer on (03) 5871 0777. Cobram District Health complies with building standards and regulations, with all works completed in 2018/19 according The Freedom of Information Act 1982, Information Privacy to the Building Act 1993, the Building Code of Australia, Act 2000 and the Health Records Act 2001 provides to Standard for Publicly Owned Buildings 1994 and relevant members of the public access to their medical records for the statutory regulations. purpose of viewing, amending incorrect notations or copying parts of the record. All essential safety measures have been maintained, so far as is practicable, in accordance with the Building Regulations During the year there were 46 requests of Cobram District 2006 as is recorded in the Annual Essential Safety Measures Health under the Act including: Report. • 11 personal requests Essential Safety Measures Reports are prepared annually for • 27 from solicitors properties owned by Cobram District Health to confirm that all of the essential safety services are operating as required. • 6 from Coroners Cobram District Health ensures works are inspected by • 2 from Victoria Police independent building surveyors and maintains a register of building surveyors, as well as the jobs they have certified and for which occupancy certificates have been issued. SAFE PATIENT CARE ACT Cobram was not required to make any disclosures during the reporting period under the Safe Patient Care Act 2015. FIRE AUDIT COMPLIANCE The Cobram District Health Fire Audit is current. CARERS RECOGNITION ACT Cobram District Health recognises the Carers Recognition FREEDOM OF INFORMATION Act 2012. The Carers Recognition Act 2012 recognises A person has the right to gain access to the information held and values the role of carers and the importance of care by Cobram District Health about him/her through Freedom of relationships in the Victorian community. The Act includes a Information (FOI). set of principles about the significance of care relationships and specifies obligations for state government agencies, The Freedom of Information Act gives a person the right to local councils and other organisations that interact with request documents held by public hospitals. people in care relationships.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 19 Statutory Requirements continued
PROTECTED DISCLOSURE ACT LOCAL JOBS FIRST POLICY Cobram District Health is committed to the aims and Cobram District Health abides by the principles of the Local objectives of the Protected Disclosures Act 2012 which came Jobs First Policy. This policy applies to all tenders in regional in to effect in February 2013. Victoria over $1 million. The Department of Health and Cobram District Health does not tolerate improper conduct Human Services Capital Management Branch reports Local by its employees, officers, directors, nor the taking of Jobs First Policy Disclosures for all projects managed by the reprisals against those who come forward to disclose such Department of Health and Human Services. In 2018/19 conduct. there were no contracts entered into to which Local Jobs First Policy applied. Cobram District Health recognises the value of transparency and accountability in our administrative and management practices, and support the making of disclosures that reveal ENVIRONMENTAL PERFORMANCE inappropriate action resulting in the mismanagement of Cobram District Health is committed to environmental public resources. sustainability. Cobram District Health will take reasonable steps to protect people who make such disclosures from any detrimental 2018/19 action in reprisal for making such a disclosure. Electricity (kWH) 189,404,36.52 There were 0 disclosures made in the year ended 30 June 2019 as per the Protected Disclosure Act 2012. Natural Gas (MJ) 39,648.64
COMPETITIVE NEUTRALITY Water (kL) 15,987 The Health Service complies with all the government policies Waste Management (kgs) 47,986 regarding competitive neutrality in regard to all tender applications. General Waste Cardboard (recycling) 2,069 CONSULTANCIES Co-Mingle (recycling) 4,987 Details of consultancies (under $10,000) In 2018/19 there were 3 consultancies where the total fees payable to the consultants was less than $10,000. The total expenditure incurred during 2018/19 in relation to these consultancies is $11,062.30 (excluding GST). Details of consultancies (valued at $10,000 or greater) In 2018/19, there were 4 consultancies where the total fees payable to the consultants were $10,000 or greater. The total expenditure incurred during 2018/19 in relation to these consultancies is $163,009.24 (excluding GST). Details of these individual consultancies are as follows:
Total approved Future End project Expenditure expenditure Consultant Purpose of Consultancy Start Date Date (excl GST) (excl GST) (excl GST) Cube Organisational re-design 01/08/19 Ongoing $45,000.00 $45,000.00 2017/18 James Seymour Capital Works Project Financial Year Ongoing $146,700.00 $97,195.60 $49,504.40 Develop strategic quality framework clinical Cathy Balding governance 01/10/18 31/10/18 $10,313.64 $10,313.64 Lake Young & Fire safety engineering Associates consult 07/10/18 07/10/18 $10,500.00 $10,500.00
20 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 DETAILS OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) EXPENDITURE The total ICT expenditure incurred during 2018/19 was $234,295.43 (excluding GST) with the details shown as follows:
Business As Usual (BAU) Non-Business As Usual (non-BAU) ICT expenditure ICT expenditure
Total (excluding GST) Total=Operational Operational expenditure Capital expenditure expenditure and Capital (excluding GST) (a) (excluding GST) (b) Expenditure (excluding GST) (a) + (b)
$219,431.61 $14,863.82 $0 $14,863.82
ADDITIONAL INFORMATION • Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit; Details in respect of the items listed below have been retained by the health service and are available to the • Details of major promotional, public relations and relevant Ministers, Members of Parliament and the public on marketing activities undertaken by the Health Service request (subject to the freedom of information requirements, to develop community awareness of the Health if applicable): Service and its services; • Declarations of pecuniary interests have been duly • Details of assessments and measures undertaken completed by all relevant officers; to improve the occupational health and safety of • Details of shares held by senior officers as nominee or employees; held beneficially; • A general statement on industrial relations within • Details of publications produced by the entity about the Health Service and details of time lost through itself, and how these can be obtained; industrial accidents and disputes, which is not otherwise detailed in the report of operations; • Details of changes in prices, fees, charges, rates and levies charged by the Health Service; • A list of major committees sponsored by the Health Service, the purposes of each committee and the • Details of any major external reviews carried out on extent to which those purposes have been achieved; the Health Service; • Details of all consultancies and contractors including • Details of major research and development activities consultants/contractors engaged, services provided, undertaken by the Health Service that are not and expenditure committed for each engagement. otherwise covered either in the report of operations or in a document that contains the financial statements and report of operations;
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 21 PART A: Statement of Priorities - Outcomes
Goals Strategies Health Service Deliverables Outcomes
Better Health Better Health Work in partnership with Moira Achieved. The focus of the Early A system Reduce statewide risks Health Services to further develop Intervention in Chronic Disease geared to and implement chronic care program has been on respiratory prevention Build healthy services based on population conditions with staff training, as much as neighbourhoods health needs. education to support consumers in self-management when treatment Help people to stay diagnosed. Everyone healthy Partner with Numurkah District Achieved. Partnerships are in understands Target health gaps Health Service for the Better Care place with GV Health, Kyabram, their own health Victoria funded Urgent Care Numurkah, Nathalia and and risks Project. This involves consumer Ambulance Victoria. Illness is participation and engagement The Choose Well, Feel Better detected and strategies to increase health public campaign is designed to managed early literacy around the right care in the right place and promotes impact demand management Healthy avoidance of unnecessary by directing people to the most neighbourhoods emergency department appropriate service for their and attendances. condition, including: pharmacy, communities advice line, Urgent Care Centre, encourage GP or Emergency Department. healthy lifestyles The introduction of Urgent care clinical pathways and the SMS patient experience monitor have taken place.
General and economic evaluations have taken place to examine the project’s impact.
22 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Goals Strategies Health Service Deliverables Outcomes
Healthy Partner with Numurkah District Achieved. The Project Team was neighbourhoods Health Service for Murray appointed in February 2018. and Primary Health Network funded communities Moira Respiratory Project. Spirometry testing commenced at encourage This will encompass improved Cobram, Nathalia, Numurkah and healthy lifestyles local access to spirometry and Yarrawonga. evidence based pulmonary Pulmonary Rehabilitation programs rehabilitation program. have been strengthened at The Respiratory Project will also Cobram, Yarrawonga, Nathalia train additional Quit educators to and Numurkah. facilitate community sessions. QUIT Victoria provided onsite education. Partner in ‘More 4 Moira’, Achieved. The Deakin RESPOND childhood obesity project project commenced in the including Deakin University Cobram catchment in February research study. 2019. Engagement with the local community included schools, service clubs and community members. Undertake community Achieved. Through the Moira engagement with local food Health Promotion Collaboration retailers to focus on access to tap and in partnership with Local water, encourage breastfeeding Government, the breastfeeding and healthy menus. friendly venue map has been developed. Work continues to educate local businesses on healthy options. The Good Food is Good Business booklet was developed and distributed by the Health Promotion Collaboration. Embed the Strengthening Achieved. A partnership has Hospital Responses to Family been developed with GV Health. Violence model for identifying A working group and shared and responding to family resources continues between violence by: Cobram, Numurkah and Nathalia health services. • Training four Cobram District Health staff to be ongoing A Project Plan was developed and in-house trainers in workplace implemented with family violence support. contact officers appointed.
• Face to face training for all Staff training has been completed staff and volunteers. and policies/procedures/ guidelines implemented. • Implementation of a Family violence workplace support Training has been incorporated Program to support staff into orientation for staff, with two experiencing family violence. sessions held to date for 2019.
• Training for new staff during orientation.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 23 PART A: Statement of Priorities - Outcomes
Goals Strategies Health Service Deliverables Outcomes
Better Access Better Access Partner with Numurkah District Achieved. A partnership was Care is always Plan and invest Health Service for Murray formed with Numurkah District there when Primary Health Network funded Health Service to review existing people need it Unlock innovation Psychological Treatment Services referral pathways and a triage to develop pathways to improve tool was developed in line with Provide easier access More access access to psychological services the State mental health triage to care in the Ensure fair access across Moira. guidelines. home and Develop a care coordination model Achieved. Case review meetings community between community health and the are held weekly with community acute ward to reduce number of health and the acute ward to plan unplanned admissions within 28 and support appropriate discharge days and reduce length of stay. process. Referral documentation has been reviewed and updated to improve communication and coordination of patient care. People are Participate in cultural diversity Achieved. Harmony Day was connected to events such as Harmony Day and celebrated by a large number of the full range National Aborigines and Islanders staff and volunteers, with a food of care and Day Observance Committee sharing event. support they (NAIDOC) week. need Planning is in place to hold a combined NAIDOC week with There is equal Nathalia District Hospital and access to care Numurkah District Health Service, and Aunty Faye. Better Care Better Care Participate in the Safer Care Achieved. Participation with Safer Target zero Put quality first Victoria Sepsis Management Care Victoria has commenced. avoidable harm Pathway in Urgent Care setting in Join up care partnership with four neighbouring Education has been provided Healthcare that health services. to staff, and use of the Sepsis focusses on Partner with patients pathways has commenced in the Urgent Care Centre. Ongoing outcomes Strengthen the workforce monitoring continues. Patients and Embed evidence Hold a workshop in August 2018 Achieved. Quality Workshops carers are to commence development of a were held in August 2018 to active partners Ensure equal care strategic quality plan. Implement assist with the development of in care and monitor clinical Key the Strategic Quality Plan, which Care fits Performance Indicators and new was adopted and implementation together around clinical governance framework. commenced in October 2018. people’s needs Develop/ undertake an Urgent Achieved. A survey was Care Centre Patient Experience developed and results tabled at Survey and monitor the results. project control meetings.
The SMS feedback results info graphic was developed in October 2018 and placed in newsletters
24 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Goals Strategies Health Service Deliverables Outcomes
Participate in Safer Care Victoria’s Achieved. Cobram District Health is Patient Opinion pilot. actively participating in the Patient Opinion project. Information has been communicated to staff via meetings and internal newsletters. The community has been provided with information brochures, which are available in all waiting areas. Information has also been provided to the community via local media. Promotion continues. Implement end of life planning Achieved. Community engagement (Advance Care Plans and Advance has been undertaken through a joint Care Directives) through community community forum and end of life workshops and events. Increase planning has been raised at local number of people with Advance community engagement events. Care Plans over 75 years by 10%. A quality end of life committee was established and increased engagement and time allocation on advanced care planning occurred in the Medical Clinic. We are monitoring and are seeing an increase in patients with advanced care plans above 10%. Implement a robust clinical review Achieved. Regular clinical system and processes with Director reviews have been conducted, Medical Service’s leadership. with investigation reports and recommendations provided to the Director of Medical Services. All documentation has been provided and discussed at monthly Morbidity and Mortality Committee meetings, and reported to Clinical Governance Committee. By June 2019 all patients entering Achieved. The report was received Cobram District Health with delirium and results reported to the Quality will be identified and managed with Services Committee. Education the new government implemented was provided to staff around the initiatives. This will include: Delirium Clinical Care Standard.
• Implementation of the initial A case review specifically related Statewide Point Prevalence to Delirium was conducted, and survey of delirium in outcomes and subsequent education acute health care settings has been provided to staff. submission of data to the Department of Health and Delirium assessment and Human Services by 20 care is monitored through our August 2018. comprehensive care monthly organisational meeting. • Implementation of initiatives once the report (from the Further steps are to be completed Department of Health and in benchmarking throughout Human Services) is finalised NCN Health and a biannual and recommendations are point prevalence survey is to be released. completed.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 25 PART A: Statement of Priorities - Outcomes
Goals Strategies Health Service Deliverables Outcomes
Specific 2018- Disability Action Plans Submit a draft disability action In progress. Our Disability Action 19 priorities Draft disability action plans plan to the department by 30 June Plan is embedded in our Diversity (mandatory) are completed in 2018- 2019. The draft plan will outline Plan. We are currently updating 19. the approach to full implementation and finalising it before submitting. within three years of publication. This year our Consumer Advisory Committee reviewed our Diversity plan and in response, established a Disability Access Working Party, consisting of Cobram District Health staff and consumers living with a range of disabilities. Together they reviewed and prioritised the existing disability access audit. Through this engagement we have been able to achieve significant progress on the task of retrofitting existing buildings, by prioritising the areas that make the most difference to consumers with disabilities. Explore and strengthen partnerships Achieved. Our Community Service with the National Disability manager, Kim Fitzgerald presented Insurance Scheme (NDIS) and with at the Cobram Disability Inclusion Providing All Living Supports (PALS) in Volunteering Community Forum. within Moira Shire. We remain in constant dialogue with Cobram Community House, which has been instrumental in engaging with the community around NDIS. As we are not an NDIS service, our role has been a support one. We continue to regularly attend the Moira Shire Disability Advisory Committee. Monthly ‘morning tea’ community engagement with the local PALS group commenced in February 2019. Joint education was provided to staff with local PALS group, focused on cultural awareness and dementia training.
26 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Goals Strategies Health Service Deliverables Outcomes
Volunteer engagement Implement a regular volunteer Achieved. Volunteers continue to Ensure that the health newsletter that is distributed be celebrated through individual service executives have to volunteers and continue to profiles in our community page in appropriate measures to celebrate Volunteer Week and the local paper. They talk about engage and recognise sponsor volunteer Christmas what inspired them to volunteer and volunteers functions. what they get out of volunteering. This acts as a combined celebration and recruitment strategy. Volunteers were invited to the Irvin House Christmas Party 2018, as they are every year. This is a celebration for residents and their families, volunteers, board members and staff. We have established a regular bi- monthly newsletter for aged care and a volunteer specific newsletter is in the planning stages with the first edition to be produced by the end of 2019. Nominations for relevant awards Achieved. The president of our will be submitted to recognise Ladies Auxiliary, Mary Powell was individual volunteer contribution. nominated for Victorian Senior of the Year in recognition of her outstanding service. She received a certificate of recognition and appreciation from the Minister. We ran a thank you afternoon tea during volunteer week at Irvin House to celebrate and thank out volunteers for their contribution at which each volunteer was awarded an appreciation certificate.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 27 PART A: Statement of Priorities - Outcomes
Goals Strategies Health Service Deliverables Outcomes
Undertake an analysis of volunteer Achieved. We had many new needs across the organisation volunteers in 2018/19. As at 30 with the aim to increase volunteer June, we had 26 active volunteers numbers from 10 to 20 in 2018-19. which exceeded our target. We round with volunteers on a regular basis. Requests for training opportunities have resulted in the provision of consumer participation training, dementia workshops and cultural awareness training. We held a consultation meeting with the acute volunteers about streamlining their paper work and incorporated their suggestions into the new system. We are in the process of overhauling the volunteer data system and uploading the files to an online volunteer management system “Better Impact”. Bullying and harassment Encourage and increase Achieved. An action plan has Actively promote positive participation in People Matters been developed in conjunction workplace behaviours Survey, then analyse results for with Nathalia District Hospital and and encourage reporting. bullying and harassment and Numurkah District Health Service to Utilise staff surveys, incident develop an action plan. Provide identify support for staff, including reporting data, outcomes feedback to Board and all staff on incentives and understanding of investigations and claims People Matter survey results and ‘why’. to regularly monitor and the action plan. identify risks related to Face to face staff training to be Achieved. Cobram District bullying and harassment, implemented in 2018. Health provided ‘face to face’ in particular include as Bullying and Harassment Training a regular item in Board to all staff in 2018. It forms part and Executive meetings. of Orientation Day and is a Appropriately investigate Mandatory competency. all reports of bullying and harassment and ensure Investigate all incidences of Achieved. All incidents are there is a feedback bullying and harassment and being investigated. An external mechanism to staff involved implement recommendations from consultant has been engaged to and the broader health investigations and reviews. conduct investigations and provide service staff. education to support management and staff.
28 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Goals Strategies Health Service Deliverables Outcomes
Occupational violence Partner with neighbouring Achieved. Face to face training Ensure all staff who have health services to review and has been conducted in conjunction contact with patients and re-commence face to face with Nathalia District Hospital and visitors have undertaken occupational violence training Numurkah District Health Service core occupational program. with sessions held in April 2019. violence training, annually. Ensure the Monitor and conduct monthly Achieved. Monthly reporting department’s occupational reporting of all occupational of Occupational Violence and violence and aggression violence incidents and actions Aggression is presented to the training principles are undertaken. Safe Practice and Environment, implemented. Clinical Governance and Board Committees. Environmental Undertake a review of waste Achieved. The Waste Sustainability management across the Management Committee has Actively contribute to the organisation and identify new been reintroduced as part of the development of the Victorian initiatives to improve the amount of Safe Practice and Environment Government’s policy to be waste and recycling occuring at Committee (SPEC). A waste net zero carbon by 2050 Cobram District Health. management audit is booked to be and improve environmental completed. Results from this will sustainability by identifying be implemented and monitored and implementing projects, through the SPEC committee. including workforce Publicly report on environmental Achieved. This information is education, to reduce performance data in Annual Report. provided in the 2018/19 Annual material environmental Report for Cobram District Health. impacts with particular consideration of procurement and waste management, and publicly reporting environmental performance data, including measureable targets related to reduction of clinical, sharps and landfill waste, water and energy use and improved recycling.
LGBTI Review policies and procedures, Achieved. Staff were provided Develop and promulgate to promote and support inclusion with the opportunity to attend Aged service level policies and of our LGBTI community and to Care LGBTI training in February protocols, in partnership avoid discrimination against LGBTI 2019. A total of six staff attended. with LGBTI communities, patients. Staff also attended LGBTIQA+ to avoid discrimination training in May 2019. against LGBTI patients, ensure appropriate data collection, and actively promote rights to free expression of gender and sexuality in healthcare settings. Where relevant, services should offer leading practice approaches to trans and intersex related interventions.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 29 PART B: Performance Priorities 2018/19 High quality and safe care Key performance indicator Target Result
ACCREDITATION Accreditation against the National Safety and Quality Health Service Accredited Full compliance Standards Compliance with the Commonwealth’s Aged Care Accreditation Standards Accredited Full compliance
INFECTION PREVENTION AND CONTROL Compliance with the Hand Hygiene Australia program 80% 81.8 % Percentage of healthcare workers immunised for influenza 80% 95%
PATIENT EXPERIENCE Victorian Healthcare Experience Survey – data submission Full compliance Full compliance Victorian Healthcare Experience Survey – percentage of positive patient 95% 9 7. 7 % experience responses - quarter 1 Victorian Healthcare Experience Survey – percentage of positive patient 95% 9 7. 3 % experience responses - quarter 2 Victorian Healthcare Experience Survey – percentage of positive patient 95% 95.1% experience responses - quarter 3 Victorian Healthcare Experience Survey – percentage of very positive responses 75% 88.6% to questions on discharge care - quarter 1 Victorian Healthcare Experience Survey – percentage of very positive responses 75% 83.3% to questions on discharge care - quarter 2 Victorian Healthcare Experience Survey – percentage of very positive responses 75% 82.7% to questions on discharge care - quarter 3 Victorian Healthcare Experience Survey – patients perception of cleanliness 70% 89.6% - quarter 1 Victorian Healthcare Experience Survey – patients perception of cleanliness 70% 84.3% - quarter 2 Victorian Healthcare Experience Survey – patients perception of cleanliness 70% 88.9% - quarter 3
ADVERSE EVENTS Sentinel events – root cause analysis (RCA) reporting All RCA reports submitted within 30 business days
30 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Strong governance, leadership and culture Key performance indicator Target Result
ORGANISATIONAL CULTURE People matter survey - percentage of staff with an overall positive response to 80% 75% safety and culture questions People matter survey – percentage of staff with a positive response to the question, “I am encouraged by my colleagues to report any patient safety 80% 85% concerns I may have” People matter survey – percentage of staff with a positive response to the 80% 80% question, “Patient care errors are handled appropriately in my work area” People matter survey – percentage of staff with a positive response to the question, “My suggestions about patient safety would be acted upon if I 80% 76% expressed them to my manager” People matter survey – percentage of staff with a positive response to the question, 80% 74 % “The culture in my work area makes it easy to learn from the errors of others” People matter survey – percentage of staff with a positive response to the 80% 75% question, “Management is driving us to be a safety-centred organisation” People matter survey – percentage of staff with a positive response to the question, 80% 67% “This health service does a good job of training new and existing staff” People matter survey – percentage of staff with a positive response to the 80% 70% question, “Trainees in my discipline are adequately supervised” People matter survey – percentage of staff with a positive response to the question, 80% 74 % “I would recommend a friend or relative to be treated as a patient here”
Effective financial management Key performance indicator Target Result
FINANCE Operating result ($m) 0.05 0.35 Average number of days to paying trade creditors 60 days 68 days Average number of days to receiving patient fee debtors 60 days 31 da ys Adjusted current asset ratio 0.7 or 3% improvement from 1.27 health service base target Number of days of available cash 14 days 26.6 days Net result from transactions (NRFT) variance for the current financial year ending Variance ≤ Not achieved 30 June $250,000
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 31 PART C: Activity and Funding 2018/19
Funding Type 2018/19 Activity Achievement
Small Rural Small Rural Acute 679 WIES equivalents
Small Rural Primary Health & HACC Nursing 863 Service hours Intake 429 Service hours Allied Health Care Coordination 43 Service hours Counselling/Casework 291 Service hours Dietetics 491 Service hours Health Promotion 4 Service hours Occupational Therapy 217 Service hours Physiotherapy 906 Service hours Podiatry 127 Service hours Speech Pathology/Therapy 309 Service hours Total 3,680 Service hours Small Rural Residential Care 10,848 Bed days Health Workforce 3 No. of students Small Rural Health Independence Program 4,148 Other specified funding -
32 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Nathalia District Hospital Financial Statements Financial Year Ended 30 June 2019
Board Member's, Accountable Officer's and Chief Finance & Accounting Officer's Declaration
Nathalia District Hospital The attached financial statements for Nathalia District Hospital have been prepared in accordance with Financial Statements Direction 5.2 of the Standing Directions of the Assistant Treasurer under the FinancialManagement Act 1994, Financial Year Ended 30 June 2019ap plicable Financial Reporting Directions (FRDs), Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. AttestationsBoard Member's, Accountable Officer's and Chief Finance & Accounting Officer's Declaration We further state that, in our opinion, the information set out in the comprehensive operating statement, The attached financial statements for Nathaliabalance District Hospital sheet, have sbeentatement prepared oin facc changesordance with in equity, cash flow statement and accompanying notes, presents fairly Direction 5.2 of the Standing Directions of the Assistant Treasurer under the FinancialManagement Act 1994, applicable Financial Reporting Directions (FRDs),the Aus financialtralian Accounting transactions Standards duincludingring Interpretations,the year ended 30 June 2019 and the financial position of Nathalia District and other mandatory professional reporting requHospitalirements. at 30 June 2019. FINANCIAL MANAGEMENT COMPLIANCE INTEGRITY, FRAUD AND CORRUPTION Nathalia District Hospital We further state that, in our opinion, the information set out in the comprehensive operating statement, ATTESTATIONbalance sheet, statement of changes in equity,At cash the flow time statement of signing, and accompanying we are notes, not presents aware fairly of any circumstance which would render any particulars included in the financial transactions during the year ended 30 June 2019 and the financial position of NathaliaI, District Jacque Phillips, certify that Cobram District Health has Financial Statements Hospital at 30 June 2019. the financial statements to be misleading or inaccurate. Financial Year Ended 30 JuneI, Dale 2019 Brooks, on behalf of the Responsible Body, put in place appropriate internal controls and processes to At the time of signing, we are not aware of anyWe circumstance authorise which the would attached render any particularsfinancial included statements in for issue on the 27 August 2019. certifythe financial that statementsCobram to be District misleading Health or inaccurate. has complied with the ensure that Integrity, fraud and corruption risks have been
Board Member's, AccountapplicableableWe au thoriseOfficer's theStanding attached and financial Directions Chief statements F ofinan for theissue ce Assistanton the & 27 A Augustc countingTreasurer 2019. reviewed and addressed at Cobram District Health during Officer's Declaration under the Financial Management Act 1994 and Instructions. Nathalia District Hospital The attached financial statements for Nathalia District Hospital have Financialbeen prepared Statements in accordance with Direction 5.2 of the Standing Directions of the Assistant Treasurer under the FinancialManagement Act 1994, Financial Year Ended�� 30 June 2019 �� applicable Financial Reporting DirectionsDaleDale Brooks (FRDs), Australian Accounting Standards includingPeter Hutchinson Interpretations, and other mandatory professional reportingBoard Chair requ irements. ttChief ExecutiveDale BrooksOfficer Chief Finance Officer Peter Hutchinson Board Chair, Cobram District HealthBoard Member's, Accountable Officer's and Chief Finance & Accounting NCN Health NCN HealthBoard Chair GV Health / Nathalia thettChief year. Executive Officer Chief Finance Officer We further state that, in our opinion,27 the27 August August information 2019 2019 set out in the27 August comOfficer's 2019prehensive Declara operating27 Augustt ionstatement, 2019 NCN Health NCN Health GV Health / Nathalia balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents Jacquefairly Phillips 27 August 2019 27 August 2019 the financial transactions during the year ended 30 June 2019 and the27The financialAugust attached 2019positio financial n of Nathaliastatements District forChief Nathalia Executive District Officer, Hospital Cobramhave been District prepared Health in acc ordance with Hospital at 30 June 2019. DATA INTEGRITY Direction 5.2 of the Standing Directions27 August of the Assistant 2019 Treasurer under the FinancialManagement Act 1994, applicable Financial Reporting Directions (FRDs), Australian Accounting Standards including Interpretations, At the time of signing, we are not awareI, Jacque of any Phillips, circumstance certify thatwhich Cobram wouldand o therrender District mandato any Health particularsry p hasrofes put sionalincluded reporting in requirements. the financial statements to be misleadingit place or appropriateinaccurate. internal controls and processes to ensure COMPLIANCE WITH HEALTH PURCHASING that reported data accurately reflectsWe further actual state performance. that, in our opinion, the information set out in the comprehensive operating statement, We authorise the attached financial statements for issue on the 27 August 2019. VICTORIA (HPV) HEALTH PURCHASING POLICIES Cobram District Health has criticallybalance reviewed sheet, s thesetatement controls of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2019 and the financial position of Nathalia District and processes during the year. Hospital at 30 June 2019. Where a service is compliant:
At the time of signing, we are not awareI, Jacque of any Phillips, circumstance certify whichthat Cobram would render District any Health particulars has included in the financial statements to be misleadingput in orplace inaccurate. appropriate internal controls and processes to �� ensure that it has complied with all requirements set out in Nathalia District Hospital We authorise the attached financial statements for issue on the 27 August 2019. DaleFinancial Brooks Statements Peter Hutchinson the HPV Health Purchasing Policies including mandatory HPV Board Chair JacquettChief PhillipsExecutive Officer Chief Finance Officer collective agreements as required by the Health Services Act Financial Year Ended 30 June 2019 Chief Executive Officer, Cobram District Health NCN Health NCN Health GV Health / Nathalia 27Board August M 2019emb er's, Account27able27 August August Officer's 2019 2019 and Chief Finance27 August& Accounting 2019 Officer's Declaration �� CONFLICT OF INTEREST The attached financial statements for Nathalia District Hospital have Dalebeen Brooks prepared in accordance with Peter Hutchinson Direction 5.2 of the Standing DirectionsI, Jacque of the Phillips, Assistant certify Treasurer that Cobram underBoard the ChairDistrict Financial HealthManagement has Act1988 tt1994,Chief (Vic) Executive and has Officer critically reviewedChief these Finance controls Officer and applicable Financial Reporting Directions (FRDs), Australian Accounting Standards including Interpretations, and other mandatory professional reportingput in place requ appropriateirements. internalNCN controls Health and processes to processesNCN Health during the year. GV Health / Nathalia ensure that it has complied with27 the August requirements 2019 of hospital 27 August 2019 27 August 2019 Jacque Phillips We further state that, in our opinion,circular the information 07/2017 set Complianceout in the com reportingprehensive in operatinghealth portfolio statement, Chief Executive Officer, Cobram District Health balance sheet, statement of changesentities in equity, (Revised) cash flowand statementhas implemented and accompanying a ‘Conflict notes, of Interest’ presents fairly 27 August 2019 the financial transactions during thepolicy year ended consistent 30 June with 2019 the minimumand the financial accountabilities position of required Nathalia District Hospital at 30 June 2019. by the VPSC. Declaration of private interest forms have At the time of signing, we are not awarebeen ocompletedf any circumstance by all executive which would staff render within any Cobram particulars District included in the financial statements to be misleadingHealth or and inaccurate. members of the board, and all declared conflicts We authorise the attached financialhave statements been addressedfor issue on and the 27are August being 20managed.19. Conflict of interest is a standard agenda item for declaration and documenting at each executive board meeting.
�� Dale Brooks Peter Hutchinson Board Chair JacquettChief PhillipsExecutive Officer Chief Finance Officer NCN Health ChiefNCN Executive Health Officer, Cobram DistrictGV HealthHealth / Nathalia 27 August 2019 2727 August August 2019 2019 27 August 2019
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 33 Five Year Financial Summary For the year ended 30 June 2019
Summary of the financial results for the year
2019 2018 2017 2016 2015 $000 $000 $000 $000 $000
Operating Result 336 1,384 (547) (2) 136 Total Revenue 22,328 20,252 17,145 15,241 15,566 Total Expenses 19,796 19,734 18,412 16,935 16,701 Net Results from Transactions 2,532 518 (1,267) (1,694) (1,135)
Total Other Economic Flows 58 (69) 31 (127) 0
Net Result 2,590 449 (1,236) (1,821) (1,135)
Total Assets 27,522 22,766 20,279 21,509 22,852 Total Liabilities 5,417 5,512 4,919 4,913 4,559 Net Assets/Total Equity 22,105 17,254 15,360 16,596 18,293 *The Operating result is the result for which Cobram District Health is monitored in the Statement of Priorities.
Reconciliation between the Net Result from Transactions reported in annual financial statements to theOperating result as agreed in the SoP 2019
$000 Net operating result* 336 Capital and specific items Capital purpose income 3,771 Specific income - Assets provide free of charge - Assets received free of charge - Expenditure for capital purpose (14) Depreciation and amortisation (1,561) Impairment of non-financial assets - Finance Costs (Other) (not general finance costs) - Net results from transactions 2,532 *The Net operating result is the result which the health service is monitored against in its Statement of Priorities
34 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Disclosure Index
The annual report of Cobram District Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.
Legislation Requirement Page Reference Ministerial Directions Report of Operations Charter and purpose FRD 22H Manner of establishment and the relevant Ministers 3 FRD 22H Purpose, functions, powers and duties 3 FRD 22H Nature and range of services provided 4 FRD 22H Activities, programs and achievements for the reporting period 6, 13 FRD 22H Significant changes in key initiatives and expectations for the future 6, 13 Management and structure FRD 22H Organisational structure 17 FRD 22H Workforce data/ employment and conduct principles 16 FRD 22H Occupational Health and Safety 18 Financial information FRD 22H Summary of the financial results for the year 34 FRD 22H Significant changes in financial position during the year 34 FRD 22H Operational and budgetary objectives and performance against objectives 31 FRD 22H Subsequent events 81 FRD 22H Details of consultancies under $10,000 20 FRD 22H Details of consultancies over $10,000 20 FRD 22H Disclosure of ICT expenditure 21 Legislation FRD 22H Application and operation of Freedom of Information Act 1982 19 FRD 22H Compliance with building and maintenance provisions of Building Act 1993 19 FRD 22H Application and operation of Protected Disclosure 2012 20 FRD 22H Statement on National Competition Policy 20 FRD 22H Application and operation of Carers Recognition Act 2012 19 FRD 22H Summary of the entity’s environmental performance 20 FRD 22H Additional information available on request 21 Other relevant reporting directives FRD 25C Local Jobs First Policy disclosures 20 SD 5.1.4 Financial Management Compliance attestation 33 SD 5.2.3 Declaration in report of operations 3 Attestations Attestation on Data Integrity 33 Attestation on Managing Conflicts of Interest 33 Attestation on Integrity, Fraud and Corruption 33 Other reporting requirements Reporting of outcomes from Statement of Priorities 2018–19 22 Occupational Violence reporting 18 Reporting of compliance Health Purchasing Victoria policy 33 Reporting obligations under the Safe Patient Care Act 2015 19
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 35 This page has been left blank intentionally
36 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health
FINANCIAL REPORT 2018/19
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 37
Auditor’s As required by the Audit Act 1994, my responsibility is to express an opinion on the financial Independent Auditor’s Report 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 To the Board of NCN Health 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 Opinion I have audited the financial report of Cobram District Health (the health service) which accordance with the Australian Auditing Standards will always detect a material comprises the: misstatement when it exists. Misstatements can arise from fraud or error and are • balance sheet as at 30 June 2019 considered material if, individually or in the aggregate, they could reasonably be expected • comprehensive operating statement for the year then ended to influence the economic decisions of users taken on the basis of this financial report. • statement of changes in equity for the year then ended As part of an audit in accordance with the Australian Auditing Standards, I exercise • cash flow statement for the year then ended professional judgement and maintain professional scepticism throughout the audit. I also: • notes to the financial statements, including significant accounting policies • board member's, accountable officer's and chief finance & accounting officer's • identify and assess the risks of material misstatement of the financial report, whether declaration. 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 In my opinion the financial report presents fairly, in all material respects, the financial opinion. The risk of not detecting a material misstatement resulting from fraud is position of the health service as at 30 June 2019 and their financial performance and cash higher than for one resulting from error, as fraud may involve collusion, forgery, flows for the year then ended in accordance with the financial reporting requirements of intentional omissions, misrepresentations, or the override of internal control. Part 7 of the Financial Management Act 1994 and applicable Australian Accounting • obtain an understanding of internal control relevant to the audit in order to design Standards. audit procedures that are appropriate in the circumstances, but not for the purpose Basis for I have conducted my audit in accordance with the Audit Act 1994 which incorporates the of expressing an opinion on the effectiveness of the health service’s internal control Opinion Australian Auditing Standards. I further describe my responsibilities under that Act and • evaluate the appropriateness of accounting policies used and the reasonableness of those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section accounting estimates and related disclosures made by the Board of my report. • 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 My independence is established by the Constitution Act 1975. My staff and I are uncertainty exists related to events or conditions that may cast significant doubt on independent of the health service in accordance with the ethical requirements of the the health service’s ability to continue as a going concern. If I conclude that a Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for material uncertainty exists, I am required to draw attention in my auditor’s report to Professional Accountants (the Code) that are relevant to my audit of the financial report in the related disclosures in the financial report or, if such disclosures are inadequate, Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance to modify my opinion. My conclusions are based on the audit evidence obtained up with the Code. to the date of my auditor’s report. However, future events or conditions may cause I believe that the audit evidence I have obtained is sufficient and appropriate to provide a the health service to cease to continue as a going concern. basis for my opinion. • evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying Board’s The Board of the health service is responsible for the preparation and fair presentation of transactions and events in a manner that achieves fair presentation. responsibilities the financial report in accordance with Australian Accounting Standards and the Financial for the Management Act 1994, and for such internal control as the Board determines is necessary I communicate with the Board regarding, among other matters, the planned scope and financial to enable the preparation and fair presentation of a financial report that is free from timing of the audit and significant audit findings, including any significant deficiencies in report material misstatement, whether due to fraud or error. internal control that I identify during my audit. 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.
MELBOURNE Travis Derricott 9 September 2019 as delegate for the Auditor-General of Victoria
2
38 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19
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 9 September 2019 as delegate for the Auditor-General of Victoria
2
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 39 Cobram District Health Table of Contents Cobram District Health has presented its audited general purpose financial statements for the financial year ended 30 June 2019 in the following structure to provide users with the information about Cobram District Health’s stewardship of resources entrusted to it. Page
Board Member’s, Accountable Officer’s and Chief Finance & Accounting Officer’s Declaration 41 Auditor-General’s Report 38 Comprehensive Operating Statement 42 Balance Sheet 43 Statement of Changes in Equity 44 Cash Flow Statement 45 Basis of preparation 46 Note 1: Summary of significant Accounting Policies 47 Note 2: Funding delivery of our services 48 Note 2.1: Income from transactions 49 Note 3: The cost of delivering our services 51 Note 3.1: Expenses from transactions 52 Note 3.2: Other economic flows 53 Note 3.3: Employee benefits in the Balance Sheet 54 Note 4: Key Assets to support service delivery 56 Note 4.1: Property, plant and equipment 57 Note 4.2: Depreciation and amortisation 63 Note 4.3: Intangible assets 64 Note 5: Other assets and liabilities 65 Note 5.1: Receivables 66 Note 5.2: Payables 67 Note 5.3: Other liabilities 67 Note 6: How we finance our operations 68 Note 6.1: Borrowings 69 Note 6.2: Cash and cash equivalents 69 Note 6.3: Commitments for expenditure 70 Note 7: Risks, contingencies and valuation uncertainties 71 Note 7.1: Financial instruments 72 Note 7.2: Contingent assets and contingent liabilities 75 Note 8: Other disclosures 76 Note 8.1: Reconciliation of net result for the year to net cash inflow - (outflow) from operating activities 77 Note 8.2: Responsible persons disclosures 77 Note 8.3: Remuneration of executives 78 Note 8.4: Related parties 79 Note 8.5: Remuneration of auditors 80 Note 8.6: Events occurring after the balance sheet date 81 Note 8.7: Jointly controlled operations 81 Note 8.8: Economic dependency 81 Note 8.9: AASBs issued that are not yet effective 82
40 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 41 COBRAM DISTRICT HEALTH COMPREHENSIVE OPERATING STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 TOTAL TOTAL Note 2019 2018 $'000 $'000 Income from Transactions Operating Activities 2.1 22,229 20,203 Non-operating Activities 2.1 99 49 Total Income from Transactions 22,328 20,252
Expenses from Transactions Employee Expenses 3.1 (14,064) (14,193) Supplies and Consumables 3.1 (1,720) (1,604) Finance Costs 3.1 (1) (1) Depreciation and Amortisation 3.1 (1,561) (1,411) Other Operating Expenses 3.1 (2,450) (2,525) Total Expenses from Transactions (19,796) (19,734)
Net Result from Transactions - Net Operating Balance 2,532 518
Other Economic Flows Included in Net Result Net gain/(loss) on non-financial assets 3.2 20 4 Net gain/(loss) on financial instruments 3.2 (5) (62) Other Gain/(Loss) from Other Economic Flows 3.2 43 (11) Total Other Economic Flows Included in Net Result 58 (69)
Net Result for the year 2,590 449
Other Comprehensive Income Items that will not be classified to Net Result Changes in Property, Plant & Equipment Revaluation Surplus 4.1b 2,261 1,445 Total Other Comprehensive Income 2,261 1,445
COMPREHENSIVE RESULT 4,851 1,894
This Statement should be read in conjunction with the accompanying notes.
42 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 COBRAM DISTRICT HEALTH BALANCE SHEET AS AT 30 JUNE 2019
Note TOTAL TOTAL 2019 2018 $'000 $'000 Current Assets Cash and Cash Equivalents 6.2 5,873 3,305 Receivables 5.1 741 802 Inventories 23 23 Prepayments 164 70
Total Current Assets 6,801 4,200
Non-Current Assets Receivables 5.1 293 286 Property, Plant and Equipment 4.1 20,397 18,242 Intangible Assets 4.3 31 38
Total Non-Current Assets 20,721 18,566
TOTAL ASSETS 27,522 22,766
Current Liabilities Payables 5.5 1,430 1,354 Borrowings 6.1 17 17 Provisions 3.3 2,272 2,027 Other Current liabilities 5.3 1,423 749
Total Current Liabilities 5,142 4,147
Non-Current Liabilities Borrowings 6.1 14 992 Provisions 3.3 261 373
Total Non-Current Liabilities 275 1,365
TOTAL LIABILITIES 5,417 5,512
NET ASSETS 22,105 17,254
EQUITY Property, Plant and Equipment Revaluation Surplus 4.1f 15,496 13,235 Contributed Capital 7,017 7,017 Accumulated Surpluses/(Deficits) (408) (2,998)
TOTAL EQUITY 22,105 17,254
Commitments 6.3 Contingent Assets and Contingent Liabilities 7.2
This Statement should be read in conjunction with the accompanying notes.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 43 COBRAM DISTRICT HEALTH STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 Property, Plant Accumulated and Equipment Contributed Surpluses/ Revaluation Capital (Deficits) Total Surplus $'000 $'000 $'000 $'000
Balance at 1 July 2017 11,790 7,017 (3,447) 15,360
Net result for the year - - 449 449 Other comprehensive income for the year 1,445 - - 1,445
Balance at 30 June 2018 13,235 7,017 (2,998) 17,254
Net result for the year - - 2,590 2,590 Other comprehensive income for the year 2,261 - - 2,261
Balance at 30 June 2019 15,496 7,017 (408) 22,105
This Statement should be read in conjunction with the accompanying notes.
44 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 COBRAM DISTRICT HEALTH COBRAM DISTRICT HEALTH STATEMENT OF CHANGES IN EQUITY CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019 Property, Plant Accumulated and Equipment Contributed Surpluses/ Note TOTAL TOTAL Revaluation Capital (Deficits) Total 2019 2018 Surplus $'000 $'000 $'000 $'000 $'000 $'000 CASH FLOWS FROM OPERATING ACTIVITIES
Balance at 1 July 2017 11,790 7,017 (3,447) 15,360 Operating Grants from Government 11,348 11,949 Capital Grants from Government 2,749 578 Net result for the year - - 449 449 Patient and Resident Fees Received 2,152 1,935 Other comprehensive income for the year 1,445 - - 1,445 Private Practice Fees Received 3,445 4,140 Donations and Bequests Received 47 68 Balance at 30 June 2018 13,235 7,017 (2,998) 17,254 GST (Paid to)/Received from ATO 12 241 Interest Received 101 51 Net result for the year - - 2,590 2,590 Other Receipts 1,672 1,646 Other comprehensive income for the year 2,261 - - 2,261 Total Receipts 21,526 20,608
Balance at 30 June 2019 15,496 7,017 (408) 22,105 Employee Expenses Paid (11,567) (11,266) Non Salary Labour Costs (2,262) (3,347) Payments for Supplies and Consumables (1,720) (1,604) Finance Costs (1) (1) Fuel, Light & Power (385) (338) Repairs and Maintenance (280) (288) Other Payments (1,986) (1,651) Total Payments (18,201) (18,495)
NET CASH FLOW FROM / (USED IN) OPERATING ACTIVITIES 8.1 3,325 2,113
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of Intangible Assets (9) (34) Purchase of Non-Financial Assets (1,455) (1,005) Proceeds from Sale of Non-Financial Assets 36 14
NET CASH FLOW FROM /(USED IN) INVESTING ACTIVITIES (1,428) (1,025)
CASH FLOWS FROM FINANCING ACTIVITIES Repayment of Borrowings (3) (28) Proceeds from Borrowings - 3 Net Receipt of Accommodation Deposits and Monies in Trust 674 258
NET CASH FLOW FROM /(USED IN) FINANCING ACTIVITIES 671 233
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS HELD 2,568 1,321
CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 3,305 1,984
CASH AND CASH EQUIVALENTS AT END OF OF FINANCIAL YEAR 6.2 5,873 3,305
This Statement should be read in conjunction with the accompanying notes.
This statement should be read in conjunction with the accompanying notes.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 45 Cobram District Health Notes to the Financial Statements 30 June 2019
BASIS OF PREPARATION The financial statements are prepared in accordance with Australian Accounting Standards and relevant FRDs.
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 Cobram District Health (ABN 22 697 331 144) for the year ended 30 June 2019. The report provides users with information about Cobram District Healths’ 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 (SDs) authorised by the Assistant Treasurer.
Cobram District Health is a not-for profit entity and therefore applies the additional AUS paragraphs applicable to “not-for-profit” Health Services under the AASBs.
(b) Reporting Entity The financial statements include all the controlled activities of Cobram District Health.
Its principal address is: 12 Cooper Street Cobram Victoria 3714
A description of the nature of Cobram District Health's operations and its principal activities is included in the report of operations, which does not form part of these financial statements.
(c) Basis of accounting preparation and measurement Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
The accounting policies have been applied in preparing the financial statements for the year ended 30 June 2019, and the comparative information presented in these financial statements for the year ended 30 June 2018.
The financial statements are prepared on a going concern basis (refer note 8.8 Economic Dependency).
These financial statements are presented in Australian Dollars, the functional and presentation currency of Cobram District Health.
All amounts shown in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Minor discrepancies in tables between totals and sum of components are due to rounding.
Cobram District Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds.
The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is, they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
46 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
BASIS OF PREPARATION NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The financial statements are prepared in accordance with Australian Accounting Standards and relevant FRDs. (c) Basis of accounting preparation and measurement (Continued)
These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basis Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily is specifically disclosed in the note associated with the item measured on a different basis. apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The estimates and associated assumptions are based on professional judgements derived from historical experience and various The accrual basis of accounting has been applied in preparing these financial statements, whereby assets, liabilities, equity, income other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASBs that have NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES significant effects on the financial statements and estimates relate to:
These annual financial statements represent the audited general purpose financial statements for Cobram District Health (ABN 22 697 331 • The fair value of land, buildings and plant and equipment (refer to Note 4.1 Property, Plant and Equipment); and 144) for the year ended 30 June 2019. The report provides users with information about Cobram District Healths’ stewardship of resources • Employee benefit provisions are based on likely tenure of existing staff, patterns of leave claims, future salary movements entrusted to it. and future discount rates (refer to Note 3.3 Employee Benefits in the Balance Sheet);
(a) Statement of compliance Goods and Services Tax (GST) These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case the GST payable is recognised as part of the cost of acquisition Management Act 1994 and applicable AASBs, which include interpretations issued by the Australian Accounting Standards Board (AASB). of the asset or as part of the expense. They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements . Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and recoverable from, or payable to, the ATO is included with other receivables or payables in the Balance Sheet. Finance, and relevant Standing Directions (SDs) authorised by the Assistant Treasurer. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities Cobram District Health is a not-for profit entity and therefore applies the additional AUS paragraphs applicable to “not-for-profit” Health which are recoverable from, or payable to the ATO, are presented as operating cash flow. Services under the AASBs. Commitments and contingent assets and liabilities are presented on a gross basis. (b) Reporting Entity The financial statements include all the controlled activities of Cobram District Health. (d) Jointly Controlled Operation Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the Its principal address is: relevant activities require the unanimous consent of the parties sharing control. 12 Cooper Street Cobram Victoria 3714 In respect of any interest in joint operations, Cobram District Health recognises in the financial statements: A description of the nature of Cobram District Health's operations and its principal activities is included in the report of operations, which • its assets, including its share of any assets held jointly; does not form part of these financial statements. • 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; (c) Basis of accounting preparation and measurement • its share of the revenue from the sale of the output by the operation; and Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the • its expenses, including its share of any expenses incurred jointly. concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. Cobram District Health is a Member of the Hume Region Health Alliance Joint Venture and retains joint control over the arrangement, The accounting policies have been applied in preparing the financial statements for the year ended 30 June 2019, which it has classified as a joint operation (refer to Note 8.7 Jointly Controlled Operations) and the comparative information presented in these financial statements for the year ended 30 June 2018. (e) Equity The financial statements are prepared on a going concern basis (refer note 8.8 Economic Dependency). Contributed Capital Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed These financial statements are presented in Australian Dollars, the functional and presentation currency of Cobram District Health. capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Cobram District Health. All amounts shown in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Minor discrepancies in tables between totals and sum of components are due to rounding. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. Transfers of net liabilities arising from administrative restructurings are treated as distributions to owners. Cobram District Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. Other transfers that are in the nature of contributions or distributions or that have been designated as contributed capital are also treated as contributed capital. 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.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 47 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 2: FUNDING DELIVERY OF OUR SERVICES
Cobram District Health's overall objective is to provide quality health services that support and enhance the wellbeing of all Victorians. Cobram District Health is predominantly funded by accrual based grant funding for the provision of outputs. Cobram District Health also receives income from the supply of services.
Structure 2.1 Income from Transactions
48 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019 NOTE 2.1: INCOME FROM TRANSACTIONS NOTE 2: FUNDING DELIVERY OF OUR SERVICES TOTAL TOTAL 2019 2018 Cobram District Health's overall objective is to provide quality health services that support and enhance the $'000 $'000 wellbeing of all Victorians. Cobram District Health is predominantly funded by accrual based grant funding for the provision of outputs. Cobram District Health also receives income from the supply of services. Government Grants - Operating 11,267 11,546 Government Grants - Capital 3,724 578 Structure Other Capital Purpose Income 47 231 2.1 Income from Transactions Indirect Contributions by Department of Health and Human Services 24 52 Patient and Resident Fees 2,211 1,760 Private Practice Fees 3,445 4,115 Commercial Activities 834 1,025 Other Revenue from Operating Activities (including non-capital donations) 677 896
Total Income from Operating Activities 22,229 20,203
Interest 99 34 Capital Interest - 15
Total Income from Non-Operating Activities 99 49
Total Income from Transactions 22,328 20,252
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 49 Cobram District Health Notes to the Financial Statements 30 June 2019 NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE (Continued) Revenue Recognition Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Cobram District Health and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance.
Amounts disclosed as revenue are, where applicable, net of returns, allowances, duties and taxes.
Government Grants and Other Transfers of Income (other than contributions by owners) In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are recognised as income when Cobram District Health gains control of the underlying assets irrespective of whether conditions are imposed on Cobram District Health's use of the contributions.
The Department of Health and Human Services makes certain payments on behalf of Cobram District Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue.
Contributions are deferred as income in advance when Cobram District Health has a present obligation to repay them and the present obligation can be reliably measured.
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
Patient Fees Patient and resident fees are recognised as revenue on an accrual basis.
Private Practice Fees Private Practice fees are recognised as revenue at the time invoices are raised.
Revenue from Commercial Activities Revenue from commercial activities such as provision of meals to external users is recognised on an accrual basis.
Donations and Other Bequests Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as specific restricted purpose surplus.
Interest Revenue Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset, which allocates interest over the relevant period.
Sale of investments The gain / (loss) on the sale of investments is recognised when the investment is realised.
Other Income Other income includes recoveries for salaries and wages, sundry sales and minor facility charges.
50 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019 NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE (Continued) NOTE 3: THE COST OF DELIVERING SERVICES Revenue Recognition Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the This section provides an account of the expenses incurred by Cobram District Health in delivering services and outputs. economic benefits will flow to Cobram District Health and the income can be reliably measured at fair value. In Section 2, the funds that enable the provision of services were disclosed and in this note the cost associated with provision Unearned income at reporting date is reported as income received in advance. of services are recorded.
Amounts disclosed as revenue are, where applicable, net of returns, allowances, duties and taxes. Structure Government Grants and Other Transfers of Income (other than contributions by owners) 3.1 Expenses from Transactions In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions 3.2 Other Economic Flows by owners) are recognised as income when Cobram District Health gains control of the underlying assets irrespective of 3.3 Employee benefits in the Balance Sheet whether conditions are imposed on Cobram District Health's use of the contributions. 3.4 Superannuation
The Department of Health and Human Services makes certain payments on behalf of Cobram District Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue.
Contributions are deferred as income in advance when Cobram District Health has a present obligation to repay them and the present obligation can be reliably measured.
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
Patient Fees Patient and resident fees are recognised as revenue on an accrual basis.
Private Practice Fees Private Practice fees are recognised as revenue at the time invoices are raised.
Revenue from Commercial Activities Revenue from commercial activities such as provision of meals to external users is recognised on an accrual basis.
Donations and Other Bequests Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as specific restricted purpose surplus.
Interest Revenue Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset, which allocates interest over the relevant period.
Sale of investments The gain / (loss) on the sale of investments is recognised when the investment is realised.
Other Income Other income includes recoveries for salaries and wages, sundry sales and minor facility charges.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 51 Cobram District Health Notes to the Financial Statements 30 June 2019 NOTE 3.1: EXPENSES FROM TRANSACTIONS TOTAL TOTAL 2019 2018 $'000 $'000
Salaries and Wages 10,783 10,156 On-costs 934 910 Agency Expenses 66 64 Fee for Service Medical Officer Expenses 2,196 2,979 Workcover Premium 85 84 Total Employee Expenses 14,064 14,193
Drug Supplies 89 111 Medical & Surgical Supplies (including Prosthesis) 869 760 Diagnostic and Radiology Supplies 274 287 Other Supplies and Consumables 488 446 Total Supplies and Consumables 1,720 1,604
Finance Costs 1 1 Total Finance Costs 1 1
Fuel, Light, Power and Water 385 338 Repairs and Maintenance 280 288 Maintenance Contracts 97 93 Medical Indemnity Insurance 74 70 Other Administration Expenses 1,600 1,461 Expenditure for Capital Purposes 14 275 Total Other Operating Expenses 2,450 2,525
Depreciation and Amortisation (refer note 4.2) 1,561 1,411
Total Other Non-Operating Expenses 1,561 1,411
Total Expenses from Transactions 19,796 19,734
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
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 consumables - Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.
Finance costs Finance costs include: • finance charges in respect of finance leases which are recognised in accordance with AASB 117 Leases.
Other operating expenses Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include: • Fuel, light and power • Repairs and maintencance • Other administrative expenses • Expenditure for capital purposes (represents expenditure related to the purchase of assets that are below the capitalisation threshold).
The Department of Health and Human Services also makes certain payments on behalf of Cobram District Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue and also recording the related expense.
Non-operating expenses Other non-operating expenses generally represent expenditure for outside the normal operations such as depreciation and amortisation, and assets and services provided free of charge or for nominal consideration.
52 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019 NOTE 3.2: OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT NOTE 3.1: EXPENSES FROM TRANSACTIONS TOTAL TOTAL TOTAL TOTAL 2019 2018 2019 2018 $'000 $'000 $'000 $'000 Net gain/(loss) on sale of non‑financial assets Salaries and Wages 10,783 10,156 Net gain on disposal of property plant and equipment 20 4 On-costs 934 910 Total net gain/(loss) on non‑financial assets 20 4 Agency Expenses 66 64 Net gain/(loss) on financial instruments at amortised cost Fee for Service Medical Officer Expenses 2,196 2,979 Impairment of contracted receivables (5) (62) Workcover Premium 85 84 Total net gain/(loss) on financial instruments at amortised cost (5) (62) Total Employee Expenses 14,064 14,193 Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service liability 43 (11) Drug Supplies 89 111 Total other gains/(losses) from other economic flows 43 (11) Medical & Surgical Supplies (including Prosthesis) 869 760 Diagnostic and Radiology Supplies 274 287 Total other gains/(losses) from economic flows 58 (69) Other Supplies and Consumables 488 446 Total Supplies and Consumables 1,720 1,604 Net Gain / (Loss) on Non-Financial Assets Net gain / (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows: Finance Costs 1 1 • Net gain/(loss) on disposal of Non-Financial Assets; and Total Finance Costs 1 1 • Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal.
Fuel, Light, Power and Water 385 338 Net gain/ (loss) on financial instruments Repairs and Maintenance 280 288 Net gain/ (loss) on financial instruments includes: Maintenance Contracts 97 93 • Impairment of financial instruments at amortised cost. Medical Indemnity Insurance 74 70 Other Administration Expenses 1,600 1,461 Other gains/(losses) from other economic flows Expenditure for Capital Purposes 14 275 Other gains/(losses) include: Total Other Operating Expenses 2,450 2,525 • the revaluation of the present value of the long service leave liability due to changes in the bond rate movements, inflation rate movements and the impact of changes in probability factors.
Depreciation and Amortisation (refer note 4.2) 1,561 1,411 Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Total Other Non-Operating Expenses 1,561 1,411
Total Expenses from Transactions 19,796 19,734
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
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 consumables - Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.
Finance costs Finance costs include: • finance charges in respect of finance leases which are recognised in accordance with AASB 117 Leases.
Other operating expenses Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include: • Fuel, light and power • Repairs and maintencance • Other administrative expenses • Expenditure for capital purposes (represents expenditure related to the purchase of assets that are below the capitalisation threshold).
The Department of Health and Human Services also makes certain payments on behalf of Cobram District Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue and also recording the related expense.
Non-operating expenses Other non-operating expenses generally represent expenditure for outside the normal operations such as depreciation and amortisation, and assets and services provided free of charge or for nominal consideration.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 53 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET TOTAL TOTAL 2019 2018 Current Provisions $'000 $'000 Employee Benefits (i) Annual Leave - unconditional and expected to be settled wholly within 12 months (ii) 886 770 - unconditional and expected to be settled wholly after 12 months (iii) 80 70 Long Service Leave - unconditional and expected to be settled wholly within 12 months (ii) 270 209 - unconditional and expected to be settled wholly after 12 months (iii) 798 756 Other - Accrued Days Off 19 27 2,053 1,832 Provisions related to Employee Benefit On-Costs - unconditional and expected to be settled wholly within 12 months (ii) 105 107 - unconditional and expected to be settled wholly after 12 months (iii) 114 88 219 195
Total Current Provisions 2,272 2,027
Non-Current Provisions Employee Benefits (i) 236 337 Provisions related to Employee Benefit On-Costs 25 36
Total Non-Current Provisions 261 373
Total Provisions 2,533 2,400 Notes: (i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts (iii) The amounts disclosed are discounted to present values
(a) Employee Benefits and Related On-Costs Current Employee Benefits and Related On-Costs Annual Leave Entitlements 1,069 928 Accrued Days Off 21 30 Unconditional LSL Entitlement 1,182 1,069 Non-Current Employee Benefits and related on-costs 2,272 2,027 Conditional Long Service Leave Entitlements (iii) 261 373 Total Employee Benefits 2,533 2,400
(b) Movements in Provisions Movement in Long Service Leave Balance at start of year 1,442 1,430 Provision made during the year - Revaluations (43) 11 - Expense Recognising Employee Service 328 253 Settlement made during the year (284) (252)
Balance at end of year 1,443 1,442
Employee Benefit Recognition Provision is made for benefits accruing to employees in respect of accrued days off, annual leave and long service leave for services rendered to the reporting date as an expense during the period the services are delivered.
Provisions Provisions are recognised when Cobram District Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
54 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET TOTAL TOTAL NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET (CONTINUED) 2019 2018 Current Provisions $'000 $'000 Annual Leave and Accrued Days Off Employee Benefits (i) Liabilities for annual leave and accrued days off are all recognised in the provision for employee benefits as Annual Leave ‘current liabilities’, because the health service does not have an unconditional right to defer settlements of these liabilities. - unconditional and expected to be settled wholly within 12 months (ii) 886 770 - unconditional and expected to be settled wholly after 12 months (iii) 80 70 Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and accrued days off are measured at: Long Service Leave • Nominal value – if the health service expects to wholly settle within 12 months; or - unconditional and expected to be settled wholly within 12 months (ii) 270 209 • Present value – if the health service does not expect to wholly settle within 12 months. - unconditional and expected to be settled wholly after 12 months (iii) 798 756 Other Long Service Leave (LSL) - Accrued Days Off 19 27 The liability for long service leave (LSL) is recognised in the provision for employee benefits. 2,053 1,832 Provisions related to Employee Benefit On-Costs Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does not expect - unconditional and expected to be settled wholly within 12 months (ii) 105 107 to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an - unconditional and expected to be settled wholly after 12 months (iii) 114 88 employee take leave within 12 months. An unconditional right arises after a qualifying period. 219 195 The components of this current LSL liability are measured at: Total Current Provisions 2,272 2,027 • nominal value – if Cobram District Health expects to wholly settle within 12 months; or • Present value – if Cobram District Health does not expect to wholly settle within 12 months. Non-Current Provisions Employee Benefits (i) 236 337 Conditional LSL is disclosed as a non-current liability. Any gain or loss following revaluation of the present value of non-current LSL Provisions related to Employee Benefit On-Costs 25 36 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. Total Non-Current Provisions 261 373 Termination benefits Total Provisions 2,533 2,400 Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides Notes: to accept an offer of benefits in exchange for the termination of employment. (i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs. (ii) The amounts disclosed are nominal amounts On-Costs related to employee expense (iii) The amounts disclosed are discounted to present values Provision for on-costs such as workers compensation and superannuation are recognised separately from provisions for employee benefits.
(a) Employee Benefits and Related On-Costs NOTE 3.4: SUPERANNUATION Current Employee Benefits and Related On-Costs Annual Leave Entitlements 1,069 928 Paid Contributions Outstanding Contributions Accrued Days Off 21 30 Fund for the year at Year End Unconditional LSL Entitlement 1,182 1,069 2019 2018 2019 2018 Non-Current Employee Benefits and related on-costs 2,272 2,027 $'000 $'000 $'000 $'000 Conditional Long Service Leave Entitlements (iii) 261 373 Defined Benefit Plans: First State Super 13 14 - - Total Employee Benefits 2,533 2,400 Defined Contribution Plans: First State Super 921 899 - - (b) Movements in Provisions Total 934 913 - - Movement in Long Service Leave Balance at start of year 1,442 1,430 Employees of the Health Service are entitled to receive superannuation benefits and the Health Service contributes to both defined benefit Provision made during the year and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary. - Revaluations (43) 11 - Expense Recognising Employee Service 328 253 Defined contribution superannuation plans Settlement made during the year (284) (252) In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined Balance at end of year 1,443 1,442 defined contribution superannuation plans are expensed when incurred.
Employee Benefit Recognition Defined benefit superannuation plans Provision is made for benefits accruing to employees in respect of accrued days off, annual leave and long service leave for services rendered The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the to the reporting date as an expense during the period the services are delivered. contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff during reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan and are based upon Provisions actuarial advice. Provisions are recognised when Cobram District Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. Cobram District Health does not recognise any defined benefit liability in respect of the plans because the hospital has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into Department of Treasury and Finance discloses the State's defined benefits liabilities in its disclosure for administered items. account the risks and uncertainties surrounding the obligation. However superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the Health Service.
The name, details and amounts that have been expensed in relation to the major employee superannuation funds and contributions made by Cobram District Health are disclosed above.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 55 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 4: KEY ASSETS TO SUPPORT SERVICE DELIVERY
Cobram District Health controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They represent the key resources that have been entrusted to the hospital to be utilised for delivery of those outputs.
Structure 4.1 Property, plant & equipment 4.2 Depreciation and amortisation 4.3 Intangibles
56 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 4: KEY ASSETS TO SUPPORT SERVICE DELIVERY NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT TOTAL TOTAL (a) Gross carrying amount and accumulated depreciation 2019 2018 Cobram District Health controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They $'000 $'000 represent the key resources that have been entrusted to the hospital to be utilised for delivery of those outputs. Land - Land at Fair Value 1,324 1,209 Structure Total Land 1,324 1,209 4.1 Property, plant & equipment 4.2 Depreciation and amortisation Buildings 4.3 Intangibles - Buildings Under Construction at Cost 214 122
- Leasehold Improvements at Cost 542 511 Less Accumulated Depreciation 542 511 - -
- Buildings at Fair Value 18,425 21,600 Less Accumulated Depreciation - 5,209 18,425 16,391
Total Buildings 18,639 16,513
Plant and Equipment - Plant and Equipment at Fair Value 760 751 Less Accumulated Depreciation 636 610 124 141
- Computers and Communication at Fair Value 313 310 Less Accumulated Depreciation 283 258 30 52
- Furniture and Fittings at Fair Value 44 38 Less Accumulated Depreciation 35 35 9 3
- Motor Vehicles at Fair Value 260 280 Less Accumulated Depreciation 209 206 51 74
Total Plant and Equipment 214 270
Medical Equipment -Medical Equipment at Fair Value 1,592 1,566 Less Accumulated Depreciation and Impairment 1,417 1,371 Total Medical Equipment 175 195
HRHA Plant and Equipment - Plant and Equipment at Fair Value 28 27 Less Accumulated Depreciation 13 7 15 20
Leased Assets - HRHA - Computers and Communication 104 90 Less Accumulated Depreciation 74 55 Total Leased Assets 30 35
Total HRHA Plant and Equipment 45 55
TOTAL 20,397 18,242
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 57 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) (b) Reconciliations of the carrying amounts of each class of asset Land Under Buildings Plant & Medical HRHA Total Construction Equipment Equipment Plant & Equip $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2017 1,209 420 14,885 345 215 59 17,133
Additions - 975 - 49 32 - 1,056 Revaluation Increments - - 1,445 - - - 1,445 Disposals - (11) - (7) - - (18) Transfers between classes - (1,262) 1,262 - - - - Hume Rural Health Alliance - - - - - 25 25 Depreciation and Amortisation (note 4.2) - - (1,201) (117) (52) (29) (1,399)
Balance at 1 July 2018 1,209 122 16,391 270 195 55 18,242
Additions - 92 1,261 57 26 15 1,451 Hume Rural Health Alliance - - - - - 4 4 Revaluation Increments/(Decrements) 115 - 2,146 - - - 2,261 Disposals - - - (16) - - (16) Depreciation and Amortisation (note 4.2) - - (1,373) (97) (46) (29) (1,545)
Balance at 30 June 2019 1,324 214 18,425 214 175 45 20,397
Land and buildings carried at valuation The Valuer-General Victoria undertook to re-value all of Cobram District Health's owned and leased land and buildings to determine their fair value. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments. The effective date of the valuation is 30 June 2019.
(c) Fair value measurement hierarchy for assets
Carrying Fair value measurement at end of reporting period amount as at using: 30 June 2019 Level 1 (i) Level 2 (i) Level 3 (i) $'000 $'000 $'000 $'000 Land at fair value Specialised land 1,324 - - 1,324 Total of land at fair value 1,324 - - 1,324
Buildings at fair value Specialised buildings 18,425 - - 18,425 Total of building at fair value 18,425 - - 18,425
Plant & Equipment at Fair Value 124 - - 124
Computers and Communication at Fair Value 30 - - 30
Furniture and Fittings at Fair Value 9 - - 9
Motor Vehicles at Fair Value 51 - - 51
Medical Equipment at Fair Value 175 - - 175
HRHA Plant & Equipment at Fair Value 15 - - 15
HRHA Leased assets at Fair Value 30 - - 30
Total of plant, equipment and vehicles at fair value 434 - - 434
20,183 - - 20,183 Note (i) Classified in accordance with the fair value hierarchy. There have been no transfers between levels during the period.
58 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) (b) Reconciliations of the carrying amounts of each class of asset (c) Fair value measurement hierarchy for assets (Continued)
Land Under Buildings Plant & Medical HRHA Total Carrying Fair value measurement at end of reporting period Construction Equipment Equipment Plant & Equip amount as at using: $'000 $'000 $'000 $'000 $'000 $'000 $'000 30 June 2018 Level 1 (i) Level 2 (i) Level 3 (i) Balance at 1 July 2017 1,209 420 14,885 345 215 59 17,133 $'000 $'000 $'000 $'000 Land at fair value Additions - 975 - 49 32 - 1,056 Specialised land 1,209 - 1,209 Revaluation Increments - - 1,445 - - - 1,445 Total of land at fair value 1,209 - - 1,209 Disposals - (11) - (7) - - (18) Transfers between classes - (1,262) 1,262 - - - - Buildings at fair value Hume Rural Health Alliance - - - - - 25 25 Specialised buildings 16,391 - - 16,391 Depreciation and Amortisation (note 4.2) - - (1,201) (117) (52) (29) (1,399) Total of building at fair value 16,391 - - 16,391
Balance at 1 July 2018 1,209 122 16,391 270 195 55 18,242 Plant & Equipment at Fair Value 141 - - 141
Additions - 92 1,261 57 26 15 1,451 Computers and Communication at Fair Value 52 - - 52 Hume Rural Health Alliance - - - - - 4 4 Revaluation Increments/(Decrements) 115 - 2,146 - - - 2,261 Furniture and Fittings at Fair Value 3 - - 3 Disposals - - - (16) - - (16) Depreciation and Amortisation (note 4.2) - - (1,373) (97) (46) (29) (1,545) Motor Vehicles at Fair Value 74 - - 74
Balance at 30 June 2019 1,324 214 18,425 214 175 45 20,397 Medical Equipment at Fair Value 195 - - 195
Land and buildings carried at valuation HRHA Plant & Equipment at Fair Value 20 - - 20 The Valuer-General Victoria undertook to re-value all of Cobram District Health's owned and leased land and buildings to determine their fair value. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be HRHA Leased assets at Fair Value 35 - - 35 exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments. The effective date of the valuation is 30 June 2019. Total of plant, equipment and vehicles at fair value 520 - - 520
(c) Fair value measurement hierarchy for assets 18,120 - - 18,120
Carrying Fair value measurement at end of reporting period Note amount as at using: (i) Classified in accordance with the fair value hierarchy. 30 June 2019 Level 1 (i) Level 2 (i) Level 3 (i) There have been no transfers between levels during the period. $'000 $'000 $'000 $'000 Land at fair value Specialised land 1,324 - - 1,324 Total of land at fair value 1,324 - - 1,324
Buildings at fair value Specialised buildings 18,425 - - 18,425 Total of building at fair value 18,425 - - 18,425
Plant & Equipment at Fair Value 124 - - 124
Computers and Communication at Fair Value 30 - - 30
Furniture and Fittings at Fair Value 9 - - 9
Motor Vehicles at Fair Value 51 - - 51
Medical Equipment at Fair Value 175 - - 175
HRHA Plant & Equipment at Fair Value 15 - - 15
HRHA Leased assets at Fair Value 30 - - 30
Total of plant, equipment and vehicles at fair value 434 - - 434
20,183 - - 20,183 Note (i) Classified in accordance with the fair value hierarchy. There have been no transfers between levels during the period.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 59 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) (d) Reconciliation of Level 3 fair value Under Plant and Medical HRHA Land Construction Buildings Equipment Equipment Assets 30-Jun-19 $'000 $'000 $'000 $'000 $'000 $'000
Opening Balance 1,209 122 16,391 270 195 55 Purchases (sales) - 92 1,261 41 26 19 Transfers in (out) of Level 3 ------
Gains or losses recognised in net result - Depreciation - - (1,373) (97) (46) (29) Subtotal 1,209 214 16,279 214 175 45
Items recognised in other comprehensive income - Revaluation 115 - 2,146 - - - Subtotal 115 - 2,146 - - Closing Balance 1,324 214 18,425 214 175 45
Plant and Medical Leased Land Buildings Buildings Equipment Equipment Assets 30-Jun-18 $'000 $'000 $'000 $'000 $'000 $'000
Opening Balance 1,209 420 14,885 345 215 59 Purchases (sales) - (298) 1,262 42 32 25 Transfers in (out) of Level 3 ------
Gains or losses recognised in net result - Depreciation - - (1,201) (117) (52) (29) Subtotal 1,209 122 14,946 270 195 55
Items recognised in other comprehensive income - Revaluation - - 1,445 - - - Subtotal - - 1,445 - Closing Balance 1,209 122 16,391 270 195 55
(e) Fair Value Determination Likely valuation Significant inputs (Level 3 Asset Class Examples of types assets Expected fair value level approach only) Specialised land - Land subject to restriction as to use Level 3 Market approach Community Service (Crown/Freehold) and/or sale Obligation Adjustments (20%) - Land in areas where there is not an active market Specialised Buildings Specialised buildings with limited Level 3 Depreciated replacement - Cost per square metre alternative uses and/or substantial cost approach - Useful life customisation eg. Hospitals Vehicles If there is an active resale market Level 3 Depreciated replacement - Cost per unit cost approach - Useful life Plant and equipment Specialised items with limited Level 3 Depreciated replacement - Cost per unit alternative uses and/or substantial cost approach - Useful life cutomisation
(f) Property, Plant and Equipment Revaluation Surplus TOTAL TOTAL 2019 2018 Property, Plant and Equipment Revaluation Surplus $'000 $'000 Balance at the beginning of the reporting period 13,235 11,790 Revaluation Increment - Land 115 - - Buildings 2,146 1,445 Balance at the end of the reporting period* 15,496 13,235
*Represented by: - Land 868 753 - Buildings 14,628 12,482 15,496 13,235
60 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) (d) Reconciliation of Level 3 fair value Initial Recognition Under Plant and Medical HRHA Items of property, plant and equipment are measured initially at cost and subsequently revalued at fair value less accumulated Land Construction Buildings Equipment Equipment Assets depreciation and impairment loss. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. 30-Jun-19 $'000 $'000 $'000 $'000 $'000 $'000 Assets transferred as part of a merger/machinery of government change are transferred at their carrying amounts.
Opening Balance 1,209 122 16,391 270 195 55 The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease Purchases (sales) - 92 1,261 41 26 19 or the estimated useful life of the improvements. Transfers in (out) of Level 3 ------Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or Gains or losses recognised in net result physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. - Depreciation - - (1,373) (97) (46) (29) Subtotal 1,209 214 16,279 214 175 45 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 Items recognised in other comprehensive income highest and best uses. - Revaluation 115 - 2,146 - - - Subtotal 115 - 2,146 - - Land and buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and Closing Balance 1,324 214 18,425 214 175 45 accumulated impairment loss.
Revaluations of Non-current Physical Assets Plant and Medical Leased Non-Current physical assets are measured at fair value and are revalued in accordance with FRD 103H Non-current Land Buildings Buildings Equipment Equipment Assets physical assets. This revaluation process normally occurs every five years, based upon the asset's Government 30-Jun-18 $'000 $'000 $'000 $'000 $'000 $'000 Purpose Classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined Opening Balance 1,209 420 14,885 345 215 59 in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences Purchases (sales) - (298) 1,262 42 32 25 between an asset's carrying value and fair value. Transfers in (out) of Level 3 ------Revaluation increments are recognised in 'Other Comprehensive Income' and are credited directly to the asset revaluation surplus Gains or losses recognised in net result except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously - Depreciation - - (1,201) (117) (52) (29) recognised as an expense in net result, the increment is recognised as income in the net result. Subtotal 1,209 122 14,946 270 195 55 Revaluation decrements are recognised in 'Other Comprehensive Income' to the extent that a credit balance exists in the asset Items recognised in other comprehensive income revaluation surplus in respect of the same class of property, plant and equipment. - Revaluation - - 1,445 - - - Subtotal - - 1,445 - Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one Closing Balance 1,209 122 16,391 270 195 55 another within that class but are not offset in respect of assets in different classes.
(e) Fair Value Determination Revaluation surplus is not transferred to accumulated funds on de-recognition of the relevant asset, except where an asset Likely valuation Significant inputs (Level 3 Asset Class Examples of types assets Expected fair value level is transferred via contributed capital. approach only) Specialised land - Land subject to restriction as to use Level 3 Market approach Community Service In accordance with FRD 103H Cobram District Health's non-current physical assets were assessed to determine (Crown/Freehold) and/or sale Obligation Adjustments (20%) whether revaluation of the non-current physical assets was required. - Land in areas where there is not an active market Fair value measurement Specialised Buildings Specialised buildings with limited Level 3 Depreciated replacement - Cost per square metre Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market alternative uses and/or substantial cost approach - Useful life participants at the measurement date. customisation eg. Hospitals Vehicles If there is an active resale market Level 3 Depreciated replacement - Cost per unit Valuation hierarchy cost approach - Useful life Health Services need to use valuation techniques that are appropriate for the circumstances and where there is sufficient data available Plant and equipment Specialised items with limited Level 3 Depreciated replacement - Cost per unit to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. alternative uses and/or substantial cost approach - Useful life cutomisation All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy.
Identifying unobservable inputs (level 3) fair value measurements (f) Property, Plant and Equipment Revaluation Surplus TOTAL TOTAL Level 3 fair value inputs are unobservable valuation inputs for an asset or liability. These inputs require significant judgement and 2019 2018 assumptions in deriving fair value for both financial and non-financial assets. Property, Plant and Equipment Revaluation Surplus $'000 $'000 Balance at the beginning of the reporting period 13,235 11,790 Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing Revaluation Increment for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value - Land 115 - measurement objective remains the same, i.e., an exit price at the measurement date from the perspective of a market participant that - Buildings 2,146 1,445 holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when Balance at the end of the reporting period* 15,496 13,235 pricing the asset or liability, including assumptions about risk.
*Represented by: - Land 868 753 - Buildings 14,628 12,482 15,496 13,235
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 61 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) Consideration of highest and best use (HBU) for non-financial physical assets Judgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions on the use and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements.
In accordance with paragraph AASB 13.29, Health Services can assume the current use of a non-financial physical asset is its HBU unless market or other factors suggest that a different use by market participants would maximise the value of the asset.
Specialised land and specialised buildings The market approach is also used for specialised land and specialised buildings although it is adjusted for the community service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore these assets are classified as Level 3 under the market based direct comparison approach.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.
For Cobram District Health, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised buildings are classified as Level 3 for fair value measurements.
An independent valuation of Cobram District Health’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2019.
Vehicles The Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates during use to reflect the consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from the carrying value (depreciated cost).
Plant and equipment Plant and equipment (including medical equipment, computers and communication equipment and furniture and fittings) are held at carrying amount (depreciated cost). When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.
There were no changes in valuation techniques throughout the period to 30 June 2019.
For all assets measured at fair value, the current use is considered the highest and best use.
62 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued) NOTE 4.2: DEPRECIATION AND AMORTISATION TOTAL TOTAL Consideration of highest and best use (HBU) for non-financial physical assets 2019 2018 Judgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions on the use $'000 $'000 and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements. Depreciation Buildings 1,342 1,167 In accordance with paragraph AASB 13.29, Health Services can assume the current use of a non-financial physical asset is its HBU Leased Buildings 31 34 unless market or other factors suggest that a different use by market participants would maximise the value of the asset. Plant and Equipment - Plant 13 16 Specialised land and specialised buildings - Non Medical Equipment 12 10 The market approach is also used for specialised land and specialised buildings although it is adjusted for the community service obligation - Motor Vehicles 45 58 (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; - Computers and Communications 26 32 therefore these assets are classified as Level 3 under the market based direct comparison approach. - Furniture and Fittings 1 1 - Medical Equipment 46 52 The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is - Hume Rural Health Alliance 29 29 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. Total Depreciation 1,545 1,399 As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets. Amortisation For Cobram District Health, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the Software 11 8 associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised Hume Rural Health Alliance - Amortisation 5 4 buildings are classified as Level 3 for fair value measurements. Total Amortisation 16 12
An independent valuation of Cobram District Health’s specialised land and specialised buildings was performed by the Valuer-General Victoria. TOTAL DEPRECIATION AND AMORTISATION 1,561 1,411 The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2019. Depreciation Vehicles All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives The Health Service acquires new vehicles and at times disposes of them before completion of their economic life. are depreciated (i.e. excludes land assets held for sale, and investment properties). Depreciation is generally calculated The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates on a straight-line basis at rates that allocate the asset’s value, less any estimated residual value over its estimated useful life during use to reflect the consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from the (refer AASB 116 Property, Plant and Equipment ). carrying value (depreciated cost). The following table indicates the expected useful lives of non current assets on which the depreciation charges are based. Plant and equipment 2019 2018 Plant and equipment (including medical equipment, computers and communication equipment and furniture and fittings) are held Buildings 3 to 40 years 3 to 40 years at carrying amount (depreciated cost). When plant and equipment is specialised in use, such that it is rarely Plant & Equipment 3 to 7 years 3 to 7 years sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market Medical Equipment 7 to 10 years 7 to 10 years evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that Computers and Communication 3 years 3 years depreciated replacement cost will be materially different from the existing carrying value. Motor Vehicles 10 years 10 years Intangible assets 3 to 4 years 3 to 4 years There were no changes in valuation techniques throughout the period to 30 June 2019. As part of the buildings valuation, building values were separated into components and each component assessed for its useful For all assets measured at fair value, the current use is considered the highest and best use. life which is represented above.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 63 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 4.3: INTANGIBLE ASSETS TOTAL TOTAL 2019 2018 $'000 $'000 Software 35 35 Less Accumulated Amortisation (28) (17) Total Software 7 18
Intangible Assets - Hume Rural Health Alliance 28 28 Less Accumulated Amortisation (4) (8) Total HRHA Software 24 20 TOTAL INTANGIBLE ASSETS 31 38
Reconciliation of the carrying amount of intangible assets at the beginning and end of the previous and current financial year: Software HRHA Total $'000 $'000 $'000 Balance at 1 July 2017 16 67 83
Additions 10 34 44 HRHA % Share Adjustment - (1) (1) Software WIP Written Off - (76) (76) Amortisation (i) (8) (4) (12)
Balance at 1 July 2018 18 20 38
Additions/(Disposals) - 9 9 HRHA % Share Adjustment - - - Software WIP Written Off - - - Amortisation (i) (11) (5) (16)
Balance at 30 June 2019 7 24 31
Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, and computer software.
Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Cobram District Health Service.
Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset's useful life.
64 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 4.3: INTANGIBLE ASSETS TOTAL TOTAL NOTE 5: OTHER ASSETS AND LIABILITIES 2019 2018 $'000 $'000 This section sets out those assets and liabilities that arose from the hospital's operations. Software 35 35 Less Accumulated Amortisation (28) (17) Structure Total Software 7 18 5.1 Receivables 5.2 Payables Intangible Assets - Hume Rural Health Alliance 28 28 5.3 Other liabilities Less Accumulated Amortisation (4) (8) Total HRHA Software 24 20 TOTAL INTANGIBLE ASSETS 31 38
Reconciliation of the carrying amount of intangible assets at the beginning and end of the previous and current financial year: Software HRHA Total $'000 $'000 $'000 Balance at 1 July 2017 16 67 83
Additions 10 34 44 HRHA % Share Adjustment - (1) (1) Software WIP Written Off - (76) (76) Amortisation (i) (8) (4) (12)
Balance at 1 July 2018 18 20 38
Additions/(Disposals) - 9 9 HRHA % Share Adjustment - - - Software WIP Written Off - - - Amortisation (i) (11) (5) (16)
Balance at 30 June 2019 7 24 31
Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, and computer software.
Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to Cobram District Health Service.
Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset's useful life.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 65 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 5.1: RECEIVABLES TOTAL TOTAL 2019 2018 CURRENT $'000 $'000 Contractual Trade Debtors 110 133 Patient Fees and Resident Debtors 406 422 Accrued Investment Income - 2 Hume Rural Health Alliance Receivables 55 157 Accrued Revenue - Other 69 105
Less Allowance for impairment losses of contractual receivables Patient Fees - (75) Trade Debtors - - 640 744 Statutory Accrued Revenue - Department of Health & Human Services 47 - GST Receivable - Health Service 54 58 101 58 TOTAL CURRENT RECEIVABLES 741 802
NON CURRENT Statutory Long Service Leave - Department of Health and Human Services 293 286 TOTAL NON-CURRENT RECEIVABLES 293 286
TOTAL RECEIVABLES 1,034 1,088
(a) Movement in the allowance for doubtful debts Balance at beginning of the year 75 53 Amounts written off during the year - - Amounts recovered during the year - - Increase/(decrease) in allowance recognised in net result (75) 22
Balance at end of year - 75
Receivables consist of: • Contractual receivables, which consists of debtors in relation to goods and services and accrued investment income. These receivables are classified as financial instruments and categorised as ‘financial assets at amortised costs’. They are initially recognised at fair value plus any directly attributable transaction costs. The Health Service holds the contractual receivables with the objective to collect the contractual cash flows and therefore subsequently measured at amortised cost using the effective interest method, less any impairment. • Statutory receivables, which predominantly includes amounts owing from the Victorian Government and Goods and Services Tax (GST) input tax credits recoverable. Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments for disclosure purposes. The Health Service applies AASB 9 for initial measurement of the statutory receivables and as a result statutory receivables are initially recognised at fair value plus any directly attributable transaction cost.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.
The Health Service is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates, management consider the credit quality of trade receivables that are not past due or impaired to be good.
Impairment losses of contractual receivables Refer to Note 7.1 ( c) Contractual receivables at amortised costs for the Health Service’s contractual impairment losses.
66 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 5.1: RECEIVABLES TOTAL TOTAL NOTE 5.2: PAYABLES TOTAL TOTAL 2019 2018 2019 2018 CURRENT $'000 $'000 $'000 $'000 Contractual CURRENT Trade Debtors 110 133 Contractual Patient Fees and Resident Debtors 406 422 Trade Creditors (i) 579 622 Accrued Investment Income - 2 Accrued Expenses 83 107 Hume Rural Health Alliance Receivables 55 157 Accrued Salaries and Wages 410 336 Accrued Revenue - Other 69 105 Hume Rural Health Alliance Payables 150 202 1,222 1,267 Less Allowance for impairment losses of contractual receivables Statutory Patient Fees - (75) GST Payable 8 - Trade Debtors - - Amounts payable to Government - GST, PAYG & FBT - 15 640 744 Department of Health and Human Services 200 72 Statutory 208 87 Accrued Revenue - Department of Health & Human Services 47 - GST Receivable - Health Service 54 58 TOTAL 1,430 1,354 101 58 TOTAL CURRENT RECEIVABLES 741 802 (i) The average credit period is 45 days.
NON CURRENT Payables consist of: Statutory • contractual payables, classified as finanical instruments ans measured at amortised cost. Accounts payable represent liabilities Long Service Leave - Department of Health and Human Services 293 286 for goods and services provided to Cobram District Health prior to the end of the financial year that are unpaid; and TOTAL NON-CURRENT RECEIVABLES 293 286 • statutory payables, that are recognised and measured similiarly 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. TOTAL RECEIVABLES 1,034 1,088 Maturity analysis of payables (a) Movement in the allowance for doubtful debts Please refer to Note 7.1(b) for the maturity analysis of payables. Balance at beginning of the year 75 53 TOTAL TOTAL Amounts written off during the year - - NOTE 5.3: OTHER LIABILITIES 2019 2018 Amounts recovered during the year - - $'000 $'000 Increase/(decrease) in allowance recognised in net result (75) 22 CURRENT Monies Held in Trust* Balance at end of year - 75 - Medical Clinic Trust 9 - - Home Care Packages 295 178 Receivables consist of: - Accommodation Bonds (Refundable Entrance Fees)* 1,119 571 • Contractual receivables, which consists of debtors in relation to goods and services and accrued investment income. These receivables are classified as financial instruments and categorised as ‘financial assets at amortised costs’. They are initially recognised at fair value TOTAL CURRENT 1,423 749 plus any directly attributable transaction costs. The Health Service holds the contractual receivables with the objective to collect the contractual cash flows and therefore subsequently measured at amortised cost using the effective interest method, less any impairment. * Total Monies Held in Trust • Statutory receivables, which predominantly includes amounts owing from the Victorian Government and Goods and Services Tax (GST) Represented by the following assets: input tax credits recoverable. Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual Cash Assets (refer to Note 6.2) 1,423 749 receivables (except for impairment), but are not classified as financial instruments for disclosure purposes. The Health Service applies AASB 9 for initial measurement of the statutory receivables and as a result statutory receivables are initially recognised at fair value TOTAL OTHER LIABILITIES 1,423 749 plus any directly attributable transaction cost.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.
The Health Service is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates, management consider the credit quality of trade receivables that are not past due or impaired to be good.
Impairment losses of contractual receivables Refer to Note 7.1 ( c) Contractual receivables at amortised costs for the Health Service’s contractual impairment losses.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 67 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 6: HOW WE FINANCE OUR OPERATIONS
This section provides information on the sources of finance utilised by the hospital during its operations, along with interest expenses (the cost of borrowings) and other information related to financing activities of the hospital.
This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note: 7.1 provides additional, specific financial instrument disclosures.
Structure 6.1 Borrowings 6.2 Cash and cash equivalents 6.3 Commitments for expenditure
68 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 6: HOW WE FINANCE OUR OPERATIONS NOTE 6.1: BORROWINGS TOTAL TOTAL 2019 2018 This section provides information on the sources of finance utilised by the hospital during its operations, along with interest expenses $'000 $'000 (the cost of borrowings) and other information related to financing activities of the hospital. Current Borrowings Finance Lease Liability 17 17 This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note: 7.1 provides additional, specific financial instrument disclosures. Total Current Borrowings 17 17
Structure Non-Current Borrowings 6.1 Borrowings Finance Lease Liability 14 17 6.2 Cash and cash equivalents Department of Health and Human Services (i) - 975 6.3 Commitments for expenditure Total Non-Current Borrowings 14 992
Total Borrowings 31 1,009
(i) They are unsecured loans which bear no interest.
Maturity analysis of borrowings Please refer to Note 7.1(c) for the maturity analysis of borrowings.
Defaults and breaches During the current and prior year, there were no defaults and breaches of any of the loans.
Borrowing Recognition A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.
NOTE 6.2: CASH AND CASH EQUIVALENTS TOTAL TOTAL 2019 2018 $'000 $'000
Cash at Bank 974 2,469 Short Term Deposits 4,621 613 Hume Rural Health Alliance 278 223
TOTAL CASH AND CASH EQUIVALENTS 5,873 3,305
Represented by: Cash for Health Service Operations 4,450 3,305 Cash for Monies Held in Trust - Cash at Bank 1,423 -
TOTAL CASH AND CASH EQUIVALENTS 5,873 3,305
Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.
For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities on the balance sheet. The cash flow statement includes monies held in trust.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 69 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 6.3: COMMITMENTS FOR EXPENDITURE TOTAL TOTAL 2019 2018 $'000 $'000 (a) Commitments
Capital Expenditure Commitments Payable: Less than 1 Year Property, Plant & Equipment 2,616 - Total Capital Expenditure Commitments 2,616 -
Total Commitments (inclusive of GST) 2,616 - less GST recoverable from the Australian Taxation Office (238) - Total Commitments (exclusive of GST) 2,378 -
All amounts shown in the commitments note are nominal amounts inclusive of GST.
Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed at their nominal value and are inclusive of the goods and services tax ("GST") payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.
70 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 6.3: COMMITMENTS FOR EXPENDITURE TOTAL TOTAL NOTE 7: RISKS, CONTINGENCIES & VALUATION UNCERTAINTIES 2019 2018 $'000 $'000 The hospital is exposed to risk from its activities and outside factors. In addition, it is often necessary to make judgements and estimates (a) Commitments associated with recognition and measurement of items in the financial statements. This section sets out financial instrument specific information, (including exposures to financial risks) as well as those items that are contingent in nature or require a higher level of Capital Expenditure Commitments judgement to be applied, which for the hospital is related mainly to fair value determination. Payable: Less than 1 Year Property, Plant & Equipment 2,616 - Structure Total Capital Expenditure Commitments 2,616 - 7.1 Financial instruments 7.2 Contingent assets and contingent liabilities Total Commitments (inclusive of GST) 2,616 - less GST recoverable from the Australian Taxation Office (238) - Total Commitments (exclusive of GST) 2,378 -
All amounts shown in the commitments note are nominal amounts inclusive of GST.
Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed at their nominal value and are inclusive of the goods and services tax ("GST") payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 71 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 7.1: FINANCIAL INSTRUMENTS Financial Risk Management Objectives and Policies
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 Cobram District Health's activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation.
(a) Categorisation of financial instruments
Financial Contractual Contractual Assets at financial assets - financial Amortised loans and liabilities at Cost receivables amortised cost Total 2019 $'000 $'000 $'000 $'000 Contractual Financial Assets Cash and cash equivalents 5,873 - - 5,873 Receivables - Trade Debtors 110 - - 110 - Other Receivables 530 - - 530 Investments and Other Financial Assets - Term Deposits - - - - Total Financial Assets (i) 6,513 - - 6,513
Financial Liabilities Payables - - 1,222 1,222 Borrowings - - 48 48 Other Financial Liabilities - Accommodation Bonds - - 1,119 1,119 - Other - - 304 304 Total Financial Liabilities - - 2,693 2,693
Financial Contractual Contractual Assets at financial assets - financial Amortised loans and liabilities at Cost receivables amortised cost Total 2018 $'000 $'000 $'000 $'000 Contractual Financial Assets Cash and cash equivalents - 3,305 - 3,305 Receivables - Trade Debtors - 133 - 133 - Other Receivables - 611 - 611 Investments and Other Financial Assets - Term Deposits - - - - Total Financial Assets (i) - 4,049 - 4,049
Financial Liabilities Payables - - 1,267 1,267 Borrowings - - 1,026 1,026 Other Financial Liabilities - Accommodation Bonds - - 571 571 - Other - - 178 178 Total Financial Liabilities - - 3,042 3,042
(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).
72 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 7.1: FINANCIAL INSTRUMENTS NOTE 7.1: FINANCIAL INSTRUMENTS (Continued) Financial Risk Management Objectives and Policies From 1 July 2018, the Health Service applies AASB 9 and classifies all of its financial assets based on the business model for managing the assets Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity and the asset’s contractual terms. instrument of another entity. Due to the nature of Cobram District Health's activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments Categories of financial assets under AASB 9 in AASB 132 Financial Instruments: Presentation. Financial assets at amortised cost (a) Categorisation of financial instruments 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 the Health Service to collect the contractual cash flows, and
Financial Contractual Contractual • the assets’ contractual terms give rise to cash flows that are solely payments of principal and interests. Assets at financial assets - financial Amortised loans and liabilities at These assets are initially recognised at fair value plus any directly attributable transaction costs and subsequently measured at amortised cost using Cost receivables amortised cost Total the effective interest method less any impairment. 2019 $'000 $'000 $'000 $'000 The Health Service recognises the following assets in this category: Contractual Financial Assets • cash and deposits; Cash and cash equivalents 5,873 - - 5,873 • receivables (excluding statutory receivables); and Receivables • term deposits. - Trade Debtors 110 - - 110 - Other Receivables 530 - - 530 Categories of financial assets previously under AASB 139 Investments and Other Financial Assets - Term Deposits - - - - Loans and receivables and cash are financial instrument assets with fixed and determinable payments that are not quoted on an active market. Total Financial Assets (i) 6,513 - - 6,513 These assets and liabilities are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method (and for assets, less any impairment). Financial Liabilities Payables - - 1,222 1,222 Cobram District Health recognises the following assets in this category: Borrowings - - 48 48 • cash and deposits; and Other Financial Liabilities • receivables (excluding statutory receivables). - Accommodation Bonds - - 1,119 1,119 - Other - - 304 304 Financial liabilities at amortised cost are initially recognised on the date they are originated. Total Financial Liabilities - - 2,693 2,693 They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest bearing liability, using the effective interest rate method. Cobram District Health recognises the following liabilities in this category: Financial Contractual Contractual • payables (excluding statutory payables); and Assets at financial assets - financial • borrowings (including finance lease liabilities). Amortised loans and liabilities at Cost receivables amortised cost Total Derecognition of financial assets: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) 2018 $'000 $'000 $'000 $'000 is derecognised when the rights to receive cash flows from the asset have expired. Contractual Financial Assets Cash and cash equivalents - 3,305 - 3,305 Derecognition of financial liabilities: A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Receivables - Trade Debtors - 133 - 133 Impairment of financial assets - Other Receivables - 611 - 611 At the end of each reporting period, the Health Service assesses whether there is objective evidence that a financial asset or group of Investments and Other Financial Assets financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to - Term Deposits - - - - annual review for impairment. Total Financial Assets (i) - 4,049 - 4,049 The allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, Financial Liabilities discounted at the effective interest rate. In assessing impairment of statutory (non-contractual) financial assets, which are not financial Payables - - 1,267 1,267 instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in Borrowings - - 1,026 1,026 accordance with AASB 136 Impairment of Assets. Other Financial Liabilities - Accommodation Bonds - - 571 571 - Other - - 178 178 Total Financial Liabilities - - 3,042 3,042
(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).
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 73 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 7.1: FINANCIAL INSTRUMENTS (Continued)
Note 7.1 (b): Maturity analysis of Financial Liabilities as at 30 June The following table discloses the contractual maturity analysis for the Health Service’s financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.
Maturity Dates Total Nominal Less than 1 - 3 3 Months 1 - 5 Note Carrying Amount 1 Month Months - 1 Year Years Amount 2019 $'000 $'000 $'000 $'000 $'000 $'000 Financial Liabilities At amortised cost Payables (i) 5.2 1,222 1,222 1,222 - - - Borrowings 6.1 48 48 2 6 9 31 Other Financial Liabilities - Accommodation Deposits 5.3 1,119 1,119 - - 1,119 - - Other 5.3 304 304 304 - - -
Total Financial Liabilities 2,693 2,693 1,528 6 1,128 31
2018 Financial Liabilities At amortised cost Payables (i) 5.2 1,267 1,267 1,267 - - - Borrowings 6.1 1,026 1,026 1 3 13 992 Other Financial Liabilities - Accommodation Deposits 5.3 571 571 - - 571 - - Other 5.3 178 178 178 - - -
Total Financial Liabilities 3,042 3,042 1,446 3 584 992
(i) Maturity analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST payable).
74 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 7.1: FINANCIAL INSTRUMENTS (Continued) NOTE 7.1: FINANCIAL INSTRUMENTS (Continued)
Note 7.1 (b): Maturity analysis of Financial Liabilities as at 30 June Note 7.1 (c): Contractual receivables at amortised costs The following table discloses the contractual maturity analysis for the Health Service’s financial liabilities. For interest rates applicable Less than 1 3 months - 1 to each class of liability refer to individual notes to the financial statements. 01-Jul-18 Current month 1-3 months year 1-5 years Total Expected loss rate 0% 0% 0% 0% 83% Maturity Dates Gross carrying amount of contractual receivables 661 38 10 20 90 819 Total Nominal Less than 1 - 3 3 Months 1 - 5 Loss allowance - - - - 75 75 Note Carrying Amount 1 Month Months - 1 Year Years Amount Less than 1 3 months - 1 2019 $'000 $'000 $'000 $'000 $'000 $'000 30-Jun-19 Current month 1-3 months year 1-5 years Total Financial Liabilities Expected loss rate 0% 0% 0% 0% 0% At amortised cost Gross carrying amount of contractual receivables 595 30 1 14 - 640 Payables (i) 5.2 1,222 1,222 1,222 - - - Loss allowance ------Borrowings 6.1 48 48 2 6 9 31 Other Financial Liabilities Impairment of financial assets under AASB 9 – applicable from 1 July 2018 - Accommodation Deposits 5.3 1,119 1,119 - - 1,119 - From 1 July 2018, the the Health Service has been recording the allowance for expected credit loss for the relevant financial instruments, - Other 5.3 304 304 304 - - - replacing AASB 139’s incurred loss approach with AASB 9’s Expected Credit Loss approach. Subject to AASB 9 impairment assessment include the the Health Service’s contractual receivables, statutory receivables and its investment in debt instruments. Total Financial Liabilities 2,693 2,693 1,528 6 1,128 31 Equity instruments are not subject to impairment under AASB 9. Other financial assets mandatorily measured or designated at fair value 2018 through net result are not subject to impairment assessment under AASB 9. While cash and cash equivalents are also subject to the Financial Liabilities impairment requirements of AASB 9, the identified impairment loss was immaterial. At amortised cost Payables (i) 5.2 1,267 1,267 1,267 - - - Contractual receivables at amortised cost Borrowings 6.1 1,026 1,026 1 3 13 992 The Health Service applies AASB 9 simplified approach for all contractual receivables to measure expected credit losses using a Other Financial Liabilities lifetime expected loss allowance based on the assumptions about risk of default and expected loss rates. The the Health Service has - Accommodation Deposits 5.3 571 571 - - 571 - grouped contractual receivables on shared credit risk characteristics and days past due and select the expected credit loss rate based - Other 5.3 178 178 178 - - - on the Department’s past history, existing market conditions, as well as forward‑looking estimates at the end of the financial year.
Total Financial Liabilities 3,042 3,042 1,446 3 584 992 On this basis, the the Health Service determines the opening loss allowance on initial application date of AASB 9 and the closing loss allowance at end of the financial year as disclosed above. (i) Maturity analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST payable). Reconciliation of the movement in the loss allowance for contractual receivables 2019 2018 Balance at the beginning of the year - 75 Opening retained earnings adjustment on adoption of AASB 9 - - Opening Loss Allowance - 75 Modification of contractual cash flows on financial assets - - Increase in provision recognised in the net result - - Reversal of provision of receivables written off during the year as uncollectible - (75) Reversal of unused provision recognised in the net result - - Balance at end of the year - -
Credit loss allowance is classified as other economic flows in the net result. Contractual receivables are written off when there is no reasonable expectation of recovery and impairment losses are classified as a transaction expense. Subsequent recoveries of amounts previously written off are credited against the same line item.
In prior years, a provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified. A provision is made for estimated irrecoverable amounts from the sale of goods when there is objective evidence that an individual receivable is impaired. Bad debts considered as written off by mutual consent.
Statutory receivables and debt investments at amortised cost [AASB2016-8.4] The Health Service’s non-contractual receivables arising from statutory requirements are not financial instruments. However, they are nevertheless recognised and measured in accordance with AASB 9 requirements as if those receivables are financial instruments.
Both the statutory receivables and investments in debt instruments are considered to have low credit risk, taking into account the counterparty’s credit rating, risk of default and capacity to meet contractual cash flow obligations in the near term. As a result, the loss allowance recognised for these financial assets during the period was limited to 12 months expected losses. No loss allowance recognised at 30 June 2018 under AASB 139. No additional loss allowance required upon transition into AASB 9 on 1 July 2018.
NOTE 7.2: CONTINGENT ASSETS AND CONTINGENT LIABILITIES
Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.
There are no known contingent assets or contingent liabilities for Cobram District Health at the date of this report.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 75 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 8: OTHER DISCLOSURES
This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial report.
Structure 8.1 Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities 8.2 Responsible persons disclosure 8.3 Remuneration of Executive Officers 8.4 Related Parties 8.5 Remuneration of auditors 8.6 Events occurring after the balance sheet date 8.7 Jointly Controlled Operations 8.8 Economic Dependency 8.9 AASBs issued that are not yet effective
76 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 8: OTHER DISCLOSURES NOTE 8.1: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH INFLOW / (OUTFLOW) TOTAL TOTAL FROM OPERATING ACTIVITIES 2019 2018 This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of $'000 $'000 this financial report. NET RESULT FOR THE YEAR 2,590 449 Structure 8.1 Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities Non-cash movements 8.2 Responsible persons disclosure Depreciation and Amortisation 1,561 1,411 8.3 Remuneration of Executive Officers Debt Forgiveness (975) - 8.4 Related Parties 8.5 Remuneration of auditors Movements included in investing and financing activities 8.6 Events occurring after the balance sheet date Net (gain)/loss from disposal of non financial physical assets (20) (4) 8.7 Jointly Controlled Operations 8.8 Economic Dependency Movements in assets and liabilities 8.9 AASBs issued that are not yet effective Change in Operating Assets & Liabilities (Increase)/Decrease in Receivables 54 (136) (Increase)/Decrease in Prepayments (94) (9) Increase/(Decrease) in Payables 17 324 Increase/(Decrease) in Provisions 192 36 Change in Inventories - 42
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 3,325 2,113
NOTE 8.2: RESPONSIBLE PERSON DISCLOSURES In accordance with the Ministerial Directions issued by the Assistant Treasurer under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period. Period Responsible Ministers: The Honourable Jill Hennessy, Minister for Health and Minister for Ambulance Services 01/07/2018 - 29/11/2018 The Honourable Jenny Mikakos, Minister for Health and Minister for Ambulance Services 29/11/2018 - 30/06/2019
Governing Boards Dale Brooks (Chair of the Board) 01/07/2018 - 30/06/2019 Paul Ukich 01/07/2018 - 30/06/2019 Alex Monk 01/07/2018 - 30/06/2019 Patricia West 01/07/2018 - 28/06/2019 Kade Beasley 01/07/2018 - 30/06/2019 Sarah Davies 01/07/2018 - 30/06/2019
Accountable Officers Jacque Phillips (Chief Executive Officer) 01/07/2018 - 30/06/2019
Remuneration of Responsible Persons The number of Responsible Persons are shown in their relevant income bands: 2019 2018 Income Band $'000 $'000 $0 - $9,999 7 8 $160,000 - $169,999 - 1 Total Numbers 7 9 Total remuneration received or due and receivable by $18 $168 Responsible Persons from the reporting entity amounted to:
During the year Cobram District Health paid $99,073 (2018 $45,858) to Numurkah District Health Service in relation to services provided by the CEO. No remuneration was paid to the CEO directly by Cobram District Health
Amounts relating to Governing Board Members and Accountable Officer are disclosed in the Health Service's controlled entities financial statements. Amounts relating to Responsible Ministers are reported within the Department of Parliamentary Services' Financial Report.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 77 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 8.3: REMUNERATION OF EXECUTIVES
Remuneration of executives The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.
Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is disclosed in the following categories.
Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.
Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.
Other long-term benefits include long service leave, other long-service benefit or deferred compensation.
Remuneration of executive officers Total Remuneration 2019 2018 $'000 $'000 Short-term employee benefits 140 - Post-employment benefits 11 - Other long-term benefits 4 - Total Remuneration 155 - Total Number of executives (i) 1 - Total annualised employee equivalent (AEE) (ii) 1 -
Notes: (i) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.4). (ii) Annualised employee equivalent is based on the time fraction worked over the reporting period. This is calculated as the total number of days the employee is engaged to work during the week by the total number of full-time working days per week (this is generally five full working days per week).
78 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 8.3: REMUNERATION OF EXECUTIVES NOTE 8.4: RELATED PARTIES
Remuneration of executives The Health Service is a wholly owned and controlled entity of the State of Victoria. Related parties of the hospital include: The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below. • all key management personnel and their close family members; Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period. • all cabinet ministers and their close family members; and • Jointly Controlled Operation - A member of the Hume Region Health Alliance; and Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is disclosed in the following categories. • all hospitals and public sector entities that are controlled and consolidated into the whole of state consolidated financial statements.
Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, All related party transactions have been entered into on an arm’s length basis. as well as non-monetary benefits such as allowances and free or subsidised goods or services. Key management personnel (KMP) of the hospital include the Portfolio Ministers and Cabinet Ministers and KMP as determined by the Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased. hospital. The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968 , and is reported within the Department of Parliamentary Other long-term benefits include long service leave, other long-service benefit or deferred compensation. Services’ Financial Report. Key management personnel of the agency include: Period Key Management Personnel Position Title Remuneration of executive officers Total Remuneration Dale Brooks (Chair of the Board) Chair of the Board 01/07/2018 - 30/06/2019 2019 2018 Paul Ukich Director 01/07/2018 - 30/06/2019 $'000 $'000 Alex Monk Director 01/07/2018 - 30/06/2019 Short-term employee benefits 140 - Patricia West Director 01/07/2018 - 28/06/2019 Post-employment benefits 11 - Kade Beasley Director 01/07/2018 - 30/06/2019 Other long-term benefits 4 - Sarah Davies Director 01/07/2018 - 30/06/2019 Total Remuneration 155 - Jacque Phillips (Chief Executive Officer) Chief Executive Officer 01/07/2018 - 30/06/2019 Total Number of executives (i) 1 - Carolyn Hargreaves Director of Clinical Services 01/07/2018 - 30/06/2019 Total annualised employee equivalent (AEE) (ii) 1 - The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances Notes: is set by the Parliamentary Salaries and Superannuation Act 1968, and is reported within the Department of Parliamentary Services’ Financial Report. (i) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.4). 2019 2018 (ii) Annualised employee equivalent is based on the time fraction worked over the reporting period. This is calculated as the total number of days the COMPENSATION $'000 $'000 employee is engaged to work during the week by the total number of full-time working days per week (this is generally five full working days Short term employee benefits 256 183 per week). Post-employment benefits 12 10 Other long-term benefits 4 21 Total 272 214
(i)Total remuneration paid to KMPs employed as a contractor during the reporting period through accounts payable has been reported under short-term employee benefits. (ii)KMPs are also reported in Note 8.2 Responsible Persons or Note 8.3 Remuneration of Executives.
Significant transactions with government-related entities Cobram District Health received funding from the Department of Health and Human Services of $11.02M (2018: $9.98M).
Expenses incurred by the Health Service in delivering services and outputs are in accordance with Health Purchasing Victoria requirements. Goods and services including procurement, diagnostics, patient meals and multi-site operational support are provided by other Victorian Health Service Providers on commercial terms.
Professional medical indemnity insurance and other insurance products are obtained from a Victorian Public Financial Corporation.
The Standing Directions of the Assistant Treasurer require the Health Service to hold cash (in excess of working capital) in accordance with the State’s centralised banking arrangements. All borrowings are required to be sourced from Treasury Corporation Victorian unless an exemption has been approved by the Minister for Health and Human Services and the Treasurer.
In addition to contract CEO services as detailed in note 8.2, Cobram District Health purchased other support services from Numurkah District Health during the year. The net total of all transactions during the year amounted to $178,280 (2018 $101,905).
Transactions with key management personnel and other related parties Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other members of the public e.g. stamp duty and other government fees and charges. Further employment of processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004 and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with the Victorian Government Procurement Board requirements.
Outside of normal citizen type transactions with the Department of Health and Human Services, all other related party transactions that involved KMPs and their close family members have been entered into on an arm's length basis. Transactions are disclosed when they are considered material to the users of the financial report in making and evaluation decisions about the allocation of scare resources.
There were no related party transactions with Cabinet Ministers required to be disclosed in 2019. There were no related party transactions required to be disclosed for Cobram District Health Board of Directors and Executive Directors in 2019.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 79 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 8.5: REMUNERATION OF AUDITORS TOTAL TOTAL 2019 2018 $'000 $'000 Victorian Auditor-General's Office Audit or review of financial statement 24 28 24 28 Other Providers Internal Audit Services 8 5 8 5
80 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019 NOTE 8.6: EVENTS OCCURRING AFTER THE BALANCE SHEET DATE NOTE 8.5: REMUNERATION OF AUDITORS TOTAL TOTAL Effective 1 July 2019 by order of the Governor-In-Council pursuant to Sections 65(1) and 65 (4) of the Health Services Act 1988, 2019 2018 Numurkah and District Health Service, Cobram District Health and Nathalia District Hospital were amalgamated to form a new health $'000 $'000 service known as NCN Health. The operations and all employees, assets and liabilities of the three health services transfer to NCN Health. Victorian Auditor-General's Office Audit or review of financial statement 24 28 NOTE 8.7: JOINTLY CONTROLLED OPERATIONS AND ASSETS 24 28 Other Providers Ownership Interest Internal Audit Services 8 5 Name of Entity 2019 2018 8 5 % % Hume Region Health Alliance 4.07 4.05
Cobram District Health's interest in assets employed in the above jointly controlled operations and assets is detailed below. The amounts are included in the financial statements and consolidated financial statements under their respective categories: 2019 2018 Current Assets $'000 $'000 Cash and Cash Equivalents 278 223 Receivables 55 157 Prepayments 10 6 Total Current Assets 343 386
Non Current Assets Property Plant and Equipment 45 55 Intangible Assets 24 20 Total Non Current Assets 69 75 Total Assets 412 461
Current Liabilities Payables 150 202 Borrowings 17 17 Total Current Liabilities 167 219
Non Current Liabilities Borrowings 14 17 Total Non Current Liabilities 14 17
Total Liabilities 181 236 Net Assets 231 225
Cobram District Health's interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:
Revenues Revenue from Operating Activities 357 327 Non Operating Activities 4 - Total Revenue 361 327
Expenses Operating Expenses 316 281 Total Expenses 316 281 Net Result Before Capital and Specific Items 45 46
Capital Purpose Income - 166 Finance Costs (1) (1) Capital Purpose Expenditure (2) (258) Depreciation and Amortisation (34) (33) (37) (126)
Net Result 8 (80)
Contingent Liabilities and Capital Commitments There are no known contingent assets or liabilities for Hume Region Health Alliance as at the date of this report.
NOTE 8.8: ECONOMIC DEPENDENCY Cobram District Health is dependent on the Department of Health and Human Services for the majority of its revenue used to operate the entity. At the date of this report, the Board of Directors has no reason to believe the Department will not continue to support Cobram District Health.
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 81 Cobram District Health Notes to the Financial Statements 30 June 2019
NOTE 8.9: AASBs ISSUED THAT ARE NOT YET EFFECTIVE Certain new Australian accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable.
As at 30 June 2019, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Cobram District Health has not and does not intend to adopt these standards early.
Topic Key Requirements Effective Impact on financial statements date AASB 15 Revenue from Contracts The core principle of AASB 15 requires an entity to 01-Jan-19 The changes in revenue recognition requirements in AASB with Customers recognise revenue when the entity satisfies a 15 may result in changes to the timing and amount of performance obligation by transferring a promised revenue recorded in the financial statements. Revenue good or service to a customer. Note that from grants that are provided under an enforceable amending standard AASB 2015-8 Amendments to agreement that have sufficiently specific obligations, will Australian Accounting Standards - Effective Date now be deferred and recognised as the performance of AASB 15 has deferred the effective date of obligations attached to the grant are satisfied. AASB 15 to annual reporting periods beginning on There is an expectation this will impact capital grant or after 1 January 2018, instead of 1 January 2017. funding, however it is not possible to quantify the impact until such time as funding is received and projects are commenced.
AASB 2016-8 Amendments to AASB 2016-8 inserts Australian requirements and 01-Jan-19 This standard clarifies the application of AASB 15 and Australian Accounting Standards – authoritative implementation guidance for not-for- AASB 9 in a not-for-profit context. The areas within these Australian Implementation Guidance profit-entities into AASB 9 and AASB 15. standards that are amended for not-for-profit application for Not-for-Profit Entities This Standard amends AASB 9 and AASB 15 to include: include requirements to assist not-for-profit entities AASB 9 in applying the respective standards to particular • Statutory receivables are recognised and measured transactions and events. similarly to financial assets. AASB 15 • The ‘customer’ does not need to be the recipient of goods and/or services; • The “contract” could include an arrangement entered into under the direction of another party; • Contracts are enforceable if they are enforceable by legal or ‘equivalent means’; • Contracts do not have to have commercial substance, only economic substance; and • Performance obligations need to be ‘sufficiently specific’ to be able to apply AASB 15 to these transactions.
The impact on reporting capital funding has potential to result in material change, however this is not able to be quantified prior to receipt of capital grants and commencement of projects. AASB 16 Leases The key changes introduced by AASB 16 include 01-Jan-19 The assessment has indicated that most operating leases, the recognition of most operating leases (which are with the exception of short term and low value leases will currently not recognised) on balance sheet. come on to the balance sheet and will be recognised as right of use assets with a corresponding lease liability. In the operating statement, the operating lease expense will be replaced by depreciation expense of the asset and an interest charge. There will be no change for lessors as the classification of operating and finance leases remains unchanged. There is no material impact from implementation of this standard due to the lack of existing operating leases.
82 C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 Cobram District Health Cobram District Health Notes to the Financial Statements Notes to the Financial Statements 30 June 2019 30 June 2019
NOTE 8.9: AASBs ISSUED THAT ARE NOT YET EFFECTIVE NOTE 8.9: AASBs ISSUED THAT ARE NOT YET EFFECTIVE (Continued) Certain new Australian accounting standards and interpretations have been published that are not mandatory for 30 Topic Key Requirements Effective Impact on financial statements June 2019 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their date applicability and early adoption where applicable. AASB 2018-8 Amendments to This standard amends various other accounting 01-Jan-19 Under AASB 1058, not-for-profit entities are required to Australian Accounting Standards – standards to provide an option for not-for-profit measure right-of-use assets at fair value at initial As at 30 June 2019, the following standards and interpretations had been issued by the AASB but were not yet effective. Right of Use Assets of Not-for-Profit entities to not apply the fair value initial recognition for leases that have significantly below-market They become effective for the first financial statements for reporting periods commencing after the stated operative dates entities measurement requirements to a class or classes of terms and conditions. as detailed in the table below. Cobram District Health has not and does not intend to adopt these standards early. right of use assets arising under leases with For right-of-use assets arising under leases with significantly below-market terms and conditions significantly below market terms and conditions principally Effective Topic Key Requirements Impact on financial statements principally to enable the entity to further its to enable the entity to further its objectives (peppercorn date objectives. This Standard also adds additional leases), AASB 2018-8 provides a temporary option for Not- AASB 15 Revenue from Contracts The core principle of AASB 15 requires an entity to 01-Jan-19 The changes in revenue recognition requirements in AASB disclosure requirements to AASB 16 for not-for- for-Profit entities to measure at initial recognition, a class with Customers recognise revenue when the entity satisfies a 15 may result in changes to the timing and amount of profit entities that elect to apply this option. or classes of right-of-use assets at cost rather than at fair performance obligation by transferring a promised revenue recorded in the financial statements. Revenue value and requires disclosure of the adoption. good or service to a customer. Note that from grants that are provided under an enforceable The State has elected to apply the temporary option in amending standard AASB 2015-8 Amendments to agreement that have sufficiently specific obligations, will AASB 2018-8 for not-for-profit entities to not apply the fair Australian Accounting Standards - Effective Date now be deferred and recognised as the performance value provisions under AASB 1058 for these right-of-use of AASB 15 has deferred the effective date of obligations attached to the grant are satisfied. assets. AASB 15 to annual reporting periods beginning on There is an expectation this will impact capital grant In making this election, the State considered that the or after 1 January 2018, instead of 1 January 2017. funding, however it is not possible to quantify the impact methodology of valuing peppercorn leases was still being until such time as funding is received and projects are developed. commenced. No material impact during the period applicable under the election. AASB 2016-8 Amendments to AASB 2016-8 inserts Australian requirements and 01-Jan-19 This standard clarifies the application of AASB 15 and Australian Accounting Standards – authoritative implementation guidance for not-for- AASB 9 in a not-for-profit context. The areas within these AASB 1058 Income of Not-for-Profit AASB 1058 will replace the majority of income 01-Jan-19 Grant revenue is currently recognised up front upon Australian Implementation Guidance profit-entities into AASB 9 and AASB 15. standards that are amended for not-for-profit application Entities recognition in relation to government grants and receipt of the funds under AASB 1004 Contributions. for Not-for-Profit Entities This Standard amends AASB 9 and AASB 15 to include: other types of contributions requirements relating The timing of revenue recognition for grant agreements include requirements to assist not-for-profit entities AASB 9 to public sector not-for-profit entities, previously in that fall under the scope of AASB 1058 may be deferred. in applying the respective standards to particular • Statutory receivables are recognised and measured AASB 1004 Contributions. For example, revenue from capital grants for the transactions and events. similarly to financial assets. The restructure of administrative arrangement will construction of assets will need to be deferred and AASB 15 remain under AASB 1004 and will be restricted to recognised progressively as the asset is being • The ‘customer’ does not need to be the recipient of government entities and contributions by owners in constructed. goods and/or services; a public sector context, The impact on current revenue recognition of the changes • The “contract” could include an arrangement entered into AASB 1058 establishes principles for transactions is the potential phasing and deferral of revenue recorded under the direction of another party; that are not within the scope of AASB 15, where in the operating statement. • Contracts are enforceable if they are enforceable by legal the consideration to acquire an asset is Impact is not able to be quantified until such time as or ‘equivalent means’; significantly less than fair value to enable not-for- capital grants are received and projects commence. • Contracts do not have to have commercial substance, profit entities to further their objective only economic substance; and • Performance obligations need to be ‘sufficiently specific’ AASB 2018-7 Amendments to This Standard principally amends AASB 101 01-Jan-20 The standard is not expected to have a significant impact to be able to apply AASB 15 to these transactions. Australian Accounting Standards – Presentation of Financial Statements and AASB on the public sector. Definition of Material 108 Accounting Policies, Changes in Accounting No material impact is expected. The impact on reporting capital funding has potential to Estimates and Errors. The amendments refine and result in material change, however this is not able to be clarify the definition of material in AASB 101 and quantified prior to receipt of capital grants and its application by improving the wording and commencement of projects. aligning the definition across AASB Standards and AASB 16 Leases The key changes introduced by AASB 16 include 01-Jan-19 The assessment has indicated that most operating leases, other publications. The amendments also include the recognition of most operating leases (which are with the exception of short term and low value leases will some supporting requirements in AASB 101 in the currently not recognised) on balance sheet. come on to the balance sheet and will be recognised as definition to give it more prominence and clarify the right of use assets with a corresponding lease liability. explanation accompanying the definition of In the operating statement, the operating lease expense material. will be replaced by depreciation expense of the asset and an interest charge. There will be no change for lessors as the classification of The following accounting pronouncements are also issued but not effective for the 2018‑19 reporting period. At this stage, the preliminary operating and finance leases remains unchanged. assessment suggests they may have insignificant impacts on public sector reporting. There is no material impact from implementation of this standard due to the lack of existing operating leases. • AASB 2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and Joint Ventures • AASB 2018-1 Amendments to Australian Accounting Standards – Annual Improvements 2015 – 2017 Cycle
C o b r a m D i s t r i c t H e a l t h - A n n u a l R e p o r t 2 018 /19 83 Cobram District Health
Cobram District Health 24-32 Broadway Street, Cobram, Victoria, 3644 Tel: (03) 5871 0777 Fax: (03) 5872 2510 www.cobramdistricthealth.org.au