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Casterton Memorial Hospital
“A Fully Accredited Healthcare Facility”
2013-2014
106th
Annual Report
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Casterton Memorial Hospital 106th Annual Report 2013-14
1
Contents
Strategic Plan Inside front cover
Our Model of Care Page 1
Governing Board, Responsible Officers & Senior Staff Page 2
Demographics & Service Profile Page 3
President’s Report Pages 4 & 5
Strategic Priorities – Part A Statement of Priorities Pages 6 & 7
Performance Indicators – Part B Statement of Priorities Page 8
Our Supportive Community Page 9
Report of Operations Pages 10 & 11
Statutory Compliance Pages 11 -13
Finance and Activity Overview Pages 14 & 15
Financials Pages 16-67
Disclosure Index Pages 68
Organisational Chart Inside back cover
Our Model of Care
Casterton Memorial Hospital is classified as a Small Rural Health Service (SRHS) under the Department of Health Policy and Guidelines. This classification allows Casterton Memorial Hospital, a Small Rural Health Service, to direct service delivery within our budget which will best meet the needs of our community.
This service and planning decentralisation of the Hospital is important for flexibility from year to year or as circumstances may alter, but also allows at the local level to identify and target community needs.
It is the role of the Board of Management to utilise information available on our local area to maximise the health gains for our community.
Casterton Memorial Hospital fulfils its mission through provision of acute, residential high care and community health/primary care services from its modern facility, as well as services into the home.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
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Casterton Memorial Hospital ABN 62 051 291 134
Responsible Ministers Commonwealth Government Australia The Hon Tanya Plibersek MP, Minister for Health & Ageing 01/07/2013 – 18/09/2013
The Hon Peter Dutton MP, Minister for Health 19/09/2013 – 30/06/2014
State Government Victoria The Hon David Davis, MLC, Minister for Health & Ageing
Hospital Board of Management President Mr. G.
Sheppard
Vice President Fr. A. Hayes Members Mr. T. Baker (OAM) Mrs K. Black Mr. G. Cain Mr. R. Dalby Mr. P. Green Dr. T. Halloran Mr. G. Smith
Audit Committee Mr. O. Stephens - CEO Mrs. K. Black – Chair Mr. G. Sheppard – Independent Member Mrs. B. Toma – Finance Officer Mr. R. Dalby – Independent Member Fr. A. Hayes – Independent Member
Visiting Medical Staff Dr. B. S. Coulson: M.B.B.S., D.R.O.G., F.A.C.R.R.M.
Dr. M. Prozesky: M.B., ChB, (South Africa)
Dr. R. Taheri: M.B. (Mashad Uni Iran) G.P. Registrar
Dr. S. Ansari: M.B.B.S. (Army Medical College – Pakistan)
Dr. Yao Zhang: M.B. (Uni of Med Sciences – Guangzhou)
Dr. L. Thompson: BMBS FRACGP (Flinders University)
Dr. T. N. Halloran: B.D., B.Sc. (Hons)
Mr. P. H. Tung: M.B., B.S., F.R.A.C.S.
Mr. S. Clifforth: M.B., B.S., F.R.A.C.S.
Dr. G. Coggins: M.B., B.S., F.R.A.C.P.
Dr. C. de Kievit: M.B., B.S., D.R.A.N.Z.C.O.G.,
F.A.C.R.R.M.
Dr. K. Fielke: M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.
Dr. J. D. Muir: M.B., ChB, D.A., F.R.C.A.
Dr. T. J. Hodson: M.B., M.B.S., F.R.A.N.Z.C.O.
Dr. S. Perry: G.P. Anaesthesia F.R.A.C.G.P., B.M.B.S. (Flinders), B.S.C., D.C.H.
Dr. B. Gavankar: M.D., D.G.O., D.A., M.B.B.S.
Emeritus Dr.A. F. Floyd: M.B., B.S., D.Obst, R.C.O.G.
* Resigned during year
Principal Officers Chief Executive Officer Mr. O. P. Stephens: B.Bus., A.C.H.S.E.
Manager Nursing Services Ms. M. Betson: N.P.,R.N., R.M., Cert. Critical Care, Nurse
Immuniser,MNsg.MNP,FACN,
Nurse Unit Manager Acute Ward/AHS/Education Officer
Mrs. J. Coulter: R.N.,R.M., Cert IV Training& Assessment
Nurse Unit Manager Night Nurse in Charge /Quality Improvement
Mrs. H. Dillon: R.N.,R.M.Grad Cert Ad Nsg Practice (Rural Remote)
Nurse Unit Manager Acute Ward/AHS
Mr. S. Gill: R.N,. Cert Aged Care
Nurse Unit Manager OR/Emergency/Infection Control Officer
Mrs. H. Gill: R.N.Cert Infection Control & Sterilisation MACN
Nurse Unit Manager Residential Care
Mrs. K. Sealey: R.N., MACN, Cert 4 in Frontline Manager.
Nurse Unit Manager Community Health
Ms. S. Bramall: R.N., Grd Dip CH
Nurse Unit Manager Primary & Community Care
Ms. A. Pekin: R.N., Nurse Immuniser, Grad Cert Diabetes Ed., BA.,
Grad DipEd (Psychology)
Programmed Activity Group Co-ordinator
*Mrs. J. Annett: EN, Diversional Therapist
Mrs. S. Neill: Cert II Financial Svs., Cert III Disability
After Hours Supervisors
Mrs. S. Dehnert: R.N., R.M., IBCLC , Nurse Immuniser, Grad Dip Child Maternal Health
Mrs. H. Dillon: R.N.,R.M.Grad Cert Ad Nsg Practice (Rural Remote)
Mrs. A. Jenkins: R.N., Grad Dip Palliative Care, Grad Cert Ad Nsg Practice (Rural Remote), Grad Cert Gerentology
Mr. S. Bryan: R.N. B.N. Grad Cert Ad Nsg (Emergency Nursing)
Mr. S. Makore: R.N.
Administrative & Finance Officer Mrs. B. Toma
Health Information / Quality Improvement Mrs. H. Rees: Clinical Coder
Catering Services Supervisor Mr. M. Nolte
Environmental Services Supervisor Mrs. E. Harvey
Maintenance Coordinator / Safety *Mr. R. Tomkins Mr. S. Zippel
Meals on Wheels Coordinator Ms. V. Ross
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
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Casterton Memorial Hospital - Small Rural Health Service (SRHS)
Demographics and Service profile
Casterton Memorial Hospital was established in 1908 and is situated in the northern sector of the Glenelg Shire within the township of Casterton. Nestled amongst rolling hills and river red gums of the Glenelg River valley, it is located on the Glenelg Highway, 359 kilometres west of Melbourne and 42 kilometres east of the South Australian border.
The Shire has a total population base of 19,520 and Casterton rural north has a catchment population of 3,500. Our catchment area includes the townships of Digby, Merino and Sandford and the surrounding rural localities. Casterton Memorial Hospital provides services to all within its population base as well as neighbouring shires.
As a Rural Health Service, the hospital is provided flexibility in its funding base to ensure that services provided directly to our community within budget, will best meet the needs of our community. The Board utilises local area information available to plan for and provide the most appropriate care and intervention options
for our local catchment area to maximise health gains and status for our community.
The Hospital provides a range of acute health, aged residential care and primary healthcare services incorporating 15 medical/surgical inpatient beds, operating theatre, 2 bay urgent care centre, 2 dialysis chairs and 30 bed high care residential care facility ‘Glenelg House’. The Hospital also provides an extensive range of allied and primary healthcare personnel and programs along with visiting consultant services. All of these services are provided from our facility ensuring effective triaging and access of best care in best possible time for our patients and clients.
The Board of Management and staff at the Casterton Memorial Hospital are committed to providing strong and efficient health and community services to meet the needs and expectations of the community it serves.
Strategic planning Casterton Memorial Hospital strategic plan 2013-2015 can be found inside the front cover of this publication, or visit our website www.castertonmemorialhospital.com.au
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
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President’s Report On behalf of the Board of Management, staff and community I am pleased to present to you the 106th Annual Report of the Casterton Memorial Hospital for the financial year ended 30 June 2014. In what has been once again a difficult budgetary year we are
pleased to report a marginal operating surplus of $16,191 before the application of depreciation expense and capital grant inflows.
This small surplus has been achieved through maximisation of revenue with bonus funding for over activity to targets achieved and optimum expense containment.
Our revenue for the year was 1.17% increase on 2012/13 year at $9.15M and expenditure was managed to under a 1% increase on the previous year at total expenditure for 2013/14 of $8.767M.
In spite of budgetary constraints and efficiency measures this year Casterton Memorial Hospital has been able to maintain and increase activity across its acute, aged residential care, primary care and home based support services. Acute service separations were 669 compared to 591 in 2012/13 and Glenelg House, our 30 bed high care residential care facility, occupancy for the year has been maintained at 99.92%. District nursing, home support and community transport services have all remained steady and have increased in some sectors.
Specialist visiting services have increased including physicians, surgeons and psychologists. This year Casterton Memorial Hospital has also seen an increase to service up-take for Tele-health episodes to 44 compared to 15 last year and where client satisfaction of this service has been well recorded.
Casterton Memorial Hospital has also achieved the majority of its’ Statement of Priority commitments with the State Government toward improved health service capacity and service deliverables to its community.
Our own Casterton Memorial Hospital two (2) year 2013 - 2015 Strategic Plan has seen
significant achievement and work towards our 22 Strategic objectives and outcomes.
Facilities & Assets, Corporate & Clinical Governance, Quality Improvement & Risk Management, Human Resources and Services Development all form part of our ongoing strategic directions.
Statement of Priorities and Casterton Memorial Hospital Strategic Plan KPI details are listed in detail in the body of this report.
Some of our achievements in 2013/14 have included:
Person Centred Care organisation wide training & philosophy implementation.
Successful preparation towards Accreditation under the new National Standards.
Capital development planning submission for $2.3M Primary Care Centre at CMH.
Preparation and readiness for new aged care residential care reforms.
Car Park expansion and redevelopment planning completed.
CMH Community Advisory Group appointed and operational.
Submission lodged for 15 Aged Home Care Packages.
Top 3 Benchmark leader under Victorian Patient Service Satisfaction Monitor report.
These achievements, together with our Statement of Priority achieved deliverables, have kept your Board of Management working hard in 2013/14.
Casterton Memorial Hospital continues to collaborate with its regional health service partners from the South West Alliance of Rural Health, South West Sustainable Hospitals Project, Southern Grampians / Glenelg Sub-Regional Corporate Services Group, Deakin Medical School, Adelaide University Medical Intern Program, Wimmera Healthcare nurse graduate program and of course our local GP Medical Practice, CC Medical.
These relationships and collaborations will develop Casterton Memorial Hospital and our access to world class healthcare services within the Barwon South-Western Region for the future benefit of the community we serve.
Mr Graham Sheppard President, BOM
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
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On behalf of the Board of Management I wish to acknowledge our dedicated staff, Medical Officers of Coleraine Casterton Medical Clinic, our visiting Specialists, Allied health teams, Ambulance Service Paramedics and all personnel who delivered excellent service and care for, or, on behalf of our organisation, thank you.
Of course our support groups and volunteers are recognised throughout this report and our year end Quality of Care report. Casterton Memorial Hospital is fortunate to have an amazing community of volunteers and support groups, from Meals on Wheels to fundraisers on wheels, Murray 2 Moyne relay team, Ladies Auxiliary and Social Club all your efforts are duly recognised and applauded by our Board and your community.
The 2013/14 year has been a year of hard work by all in the provision of quality, relevant and safe healthcare to our community. We look forward to the year ahead in 2014/2015 and can assure our community that we will seek to
improve on a continuous basis and provide to you what is required under our capacity as a Small Rural Health Service.
Finally I wish to thank and commend the work of my fellow Board of Management colleagues and Executive in Mary-Anne and Owen in managing and keeping the directions of Casterton Memorial Hospital efficient and relevant for the community that we serve.
In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the Casterton Memorial Hospital for the year ending 30 June, 2014.
2013-2014 Casterton Memorial Hospital board members and executive at work.
Data Integrity I, Owen Stephens, certify that the Casterton Memorial Hospital has put in place appropriate internal controls
and processes to ensure that reported data reasonably reflects actual performance. The Casterton Memorial
Hospital has critically reviewed these controls and processes during the year.
Mr Graham Sheppard Board Chair 19th August,2014
Owen P Stephens
Chief Executive Officer
Casterton
20th
August 2014
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
6
Statement of Priorities – Part A Strategic priorities – 2013/14
The Victorian Government's priorities and policy directions are outlined in the Victorian Health Priorities Framework Health Priorities 2012-2022.
In 2013-14 Casterton Memorial Hospital achieved the following outcomes within the 7 policy directions:
Priority Action
Deliverable Outcome
Developing a system that is responsive to people's needs
● Implement formal advanced care planning structures and processes that proved patients with opportunities to develop, review and have their expressed preferences for future treatment and care enacted
● Review advanced care planning processes across acute and aged residential care and ensure patients/residents have the opportunity to consider and enact as required
Review of CMH policy in line with best practice guidelines Advanced Care Plans added to TRAK as an alert for Acute and record folders labelled in Glenelg House. Register implemented Community awareness
● Work and plan with key partners and service providers to respond to issues of distance and travel time experienced by some rural and regional Victorians
● To work in partnership with the Glenelg Shire and other sub-regional Government agencies to gain support of Casterton Airstrip to allow for 24/7 Air Ambulance access and retrieval
Glenelg Shire planning amendments approved. DEPI invested on air field upgrade as part of South West fire bomber base. Government approval for planning amendment near approval.
Improving every Victorian's health status and experiences
● To improve thirty-day unplanned readmission rates
● Review and Measure thirty day readmission rates and develop strategies to address any issues
Re-admissions added to the Clinical record review program. Unplanned Re-admissions in 28 days part of CMH Clinical Indicator suite – Rate has dropped from 1.7 in Jul-Dec 12 to 1.4 in Jul-Dec 13
● Use Consumer feedback to improve person and family centred care and patient experience
● Evaluate and document the effectiveness of the Person Centred Care training program delivered across the organisation in 2012
Further develop feedback options to assist in articulation of response to PCC. Evaluate specific PCC factors and indices of overall service. Evaluation tools in place and good feedback received
● Use existing service capability frameworks, patient pathways and clinical guidelines to support better health outcomes
● Develop agreed catchment wide clinical pathway for specialist Cardiac services
Further expand cardiac services and tele-health for specialists consults. Improving CMH Cardiac transfer protocols with Barwon Health
Expanding service, workforce and system capacity
● Build workforce capacity and sustainability by supporting formal and informal clinical education and training for staff and health students, in particular inter-professional learning
● Facilitate the employment of two nurse graduate placements in 2014
Two graduates in place, collaborative program with Wimmera Health. Increased relationships with education providers, ie: commenced IRON students.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
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Priority
Action
Deliverable Outcome
Increasing the system's financial sustainability and productivity
● Reduce variation in health service administrative costs
● Review and benchmark administrative overhead costs across all departments against similar sized health services, with a view to maximising administrative efficiency
Developing data base and cost management process. Specific Aged Care Services costing work being conducted.
● Identify opportunities for efficiency and better value service delivery
● Measure the impact on energy costs and environmental foot print of actions taken by the Casterton Memorial Hospital Group over the past 12 months
Meetings held and costing comparative templates in place. New EMP endorsed with targets for 2014/15 ~ 2016/17
Implementing continuous improvements and innovation
● Support change and innovation in practice where it is proven to deliver more effective and efficient healthcare
● Endorse the training of two additional Remote Isolated Practice Endorsed Nurse Program nurses to consolidate the enhanced service already provided through the program
Endorsed and all policies in place to support positions. Encouraged from an organisational level to support more staff to undertake the extended scope of practice.
● Review proven e-Medication Management program for implementation at Casterton Memorial Hospital in order to reduce medication errors
Awaiting Portland District Health trial with SWARH E-Medication system evaluation. Review of PDH outcomes underway. Webinar set for product demonstration 18
th June
Increasing accountability & transparency
● Prepare for the National Safety and Quality Health Service Standards, as applicable
● Develop consumer consultative group, including terms of reference, in preparation for agency accreditation in July, 2014
Group advertised, terms of reference in place and three meetings held. Continuing to define the role and purpose with initial projects having now been provided to Advisory Group.
Improving utilisation of e-health and communications technology
● Maximise the use of health ICT infrastructure
● Implement patient admissions system (TRAK) and electronic health record for inpatient care delivery
TRAK PAS implemented 1st
March 2013 with TRAK clinical notes implemented on 1
st July
2013. Platinum 5 upgrade also in 2013 – currently evaluating both. Progress notes in place, and evaluated ~ successful .
● Trial, implement and evaluate strategies that use e-health as an enabler of better patient care
● Pilot a tele-health project with Western District Health Service for pre-operative anaesthetist consultations
Urgent care transitioning planned in the future. Medication Management program being reviewed for implementation, demonstration 18
th June.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
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Performance Indicators - Part B Activity & Funding
Service Performance Target 2013-2014 Actual
Quality and Safety
Health service Accreditation Full compliance Achieved
Residential aged care accreditation Full compliance Achieved
Cleaning standards Full compliance Achieved
Submission of data to VICNISS (1) Full compliance Achieved
Hand Hygiene (rate) 60 77
Health care worker immunisation - influenza 75 97
Victorian Hospital Experience Measurement Instrument (2) Full compliance Achieved
People Matter Survey Full compliance Achieved
(1) VICNISS i s the Victorian Hospita l Acquired Infection Survei l lance System.
(2) The Victorian Health Experience Measurement Instrument (VHEMI) i s the instrument for measuring patient experience and has
replaced the Victorian Patient Satis faction Monitor
72%
65%
72%
73%
64%
75%
77%
60%
62%
64%
66%
68%
70%
72%
74%
76%
78%
2012 (1) 2012 (2) 2012 (3) 2013 (1) 2013 (2) 2013 (3) 2014 (1)
CMH Hand Hygiene - Total Compliance Rates 2013/14
Total Hand Hygiene Compliance Results CMH Acceptable Level
Environmental Management Casterton Memorial Hospital’s Environmental Management Committee is responsible for developing strategies to monitor and reduce the environmental impact of the facility with consideration to ensuring high quality care and safety is paramount in the delivery of all services. The Committee meets bi-monthly and reports directly to the Board of Management.
Through the work of this committee the facility has made significant reductions in kilowatts of power utilised throughout the facility. Hallogen downlights have been replaced with LED, and automatic switches installed to 50 bathroom heat lamps.
0
200000
400000
600000
800000
2012/13 2013/14
Power Usage & Cost Comparison
Cost
Kwh's (Peak & OffPeak)
Power is the facility’s major source of energy
0
20000
40000
60000
80000
2012/13 2013/14
LPG Usage & Cost Comparison
Cost
Litres
LPG primarily used for hot water, usage has decreased however costs
have increased
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
9
Our Supportive Community Casterton and district community members, businesses, service groups and fund raising committees continue to support the activities, planning and development of our facility. This support is very much valued and reinforces our strong community spirit. During 2013/14, CMH fundraising committees and the community have contributed $39,264 to our facility, to assist with maintaining our modern well-equipped hospital, aged care facility and community health development. We also acknowledge and appreciate the general donations received from families, community members, staff and estates. Volunteers provide purposeful activities and roles, and as such are greatly appreciated by staff and the community we serve. Their contribution extends to activities including
delivery of Meals on Wheels, bus driving, visiting, entertainment and diversional and lifestyle activities. It is through our volunteers that we are able to foster community connection and participation for our residents and their families. The Hospital also appreciates the input and contributions from the businesses and the broader community through our community surveys, questionnaires and Hospital Card Program. This community spirit contributes to Casterton Memorial Hospital being a proud facility and also supports our continual effort to provide the best quality services to meet the changing needs of our community. The Board of Management sincerely thanks all Casterton Memorial Hospital supporters for their generous, tireless and invaluable support during 2013/14.
Donations received during 2013-2014
Life Governors
Burston, Sir S.G.W.
Collins, Mr D.
Cowland, Mr R.
Edge, Mr E.
Flanders, Mrs E.
Floyd, Dr. A. F.
McEachern, Mrs N. J.
McKinnon, Mrs C.
Moffatt, Mrs M.
Nicol, Mr R.
Ross, Mrs J. (OAM)
Sandow, Mr P. J.
Simson, C. R. & K. L.
Squire, D.
Thompson, Mrs R. G.
Recognised for Service and Dedication to
Casterton Memorial Hospital
Fundraising Committee
CMH Hospital Social Club 1,000.00
CMH Ladies Auxiliary 3,367.51
CMH Murray to Moyne 16,519.40
CMH Hospital Card Program 5,650.00
CMH staff 1,043.05Friends of Glenelg House 1,000.00
Staff - Exercise Group 640.15
Community Member Support
In Memory of Mr Gerald McArlein 170.00
In Memory of Mrs Gladys Goodwin 300.00
In Memory of Mr James Johnson 635.00
In Memory of Mr Peter Humphries 445.00
In Memory of Mr Barry Peters 275.00
Anonymous 730.00
Casterton Lions Club 500.00
Casterton Motor Enthusiast Club 2,200.00
Grace Groves Estate 152.20
Hamilton Bridge Club 400.00
Mrs Beverley Baines 50.00
Mr Hugh Delahunty, MP 200.00
Mr Paul Bell 250.00
Estates
Equity Trustees - Estate John MacPherson 1,250.00
Equity Trustees - Estate Louise Henty 2,036.43
Equity Trustees - Estate William Health 450.00
Total Donations 39,263.74
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
10
Report of Operations In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the Casterton Memorial Hospital for the year ending 30 June, 2013.
5 Year Comparative Report
Five Year Financial Comparative Statement 2009/10 2010/11 2011/12 2012/13 2013/14
Total Revenue 7,067,052 8,233,277 8,746,241 9,044,597 9,149,983
Total Expenditure 7,560,397 8,600,682 9,177,363 9,688,341 9,626,491
Net result for the year -493,345 -367,405 -431,122 -643,744 -476,508Share of Comprehensive Income Joint
Venture 37,717 - - - -
Asset Revaluation (increments/decrements) - - - 1,405,506 9,656,169
Retained Surplus/Accumulated Deficit 7,334,072 6,966,667 6,535,545 5,891,801 5,415,293
Total Assets 17,853,140 17,710,333 17,435,253 18,409,321 27,525,008
Total Liabilities 1,783,873 2,008,471 2,164,513 2,376,819 2,312,845
Net Assets 16,069,267 15,701,862 15,270,740 16,032,502 25,212,163
Total Equity 16,069,267 15,701,862 15,270,740 16,032,502 25,212,163
Fees All fees charged by the Hospital for Acute and Community services are in accordance with the directives of the Department of Health, and Aged Care fees as directed by the Commonwealth Department of Health and Ageing.
Patient Debtors Outstanding as at 30thJune 2014
Under 30
days 31-60 days 61-90 days over 90 days Total 13/14 Total 12/13
Private Inpatients 6,232 3,966 951 231 11,380 12,221
Non In patients (HACC/ DVA) 7,686 - 3.6 - 7,690 5,531
Residential Care 59,670 16,477 2468.99 2,483 81,098 80,206
Cash Management / Liquidity Indicators
Average Collection Days
2013/14 2012/13
Patient/Resident/Client Revenue Turnovers
- Private, Compensable, Nursing Home Type 33.32 72.17
- Residential Care 38.23 34.95
- Non Admitted Patient Fees 31.23 36.51
Trade Creditor Turnover 30 30
Efficiency Indicators
Service Performance Funded Activity on the basis of Weighted Inlier Equivalent Separations (WIES) and bed days. The data as at time of print has not received final Victorian Admitted Episode Dataset (VAED) consolidation sign off.
Activity Aged Care
Weighted Inlier Equivalent Separations (WIES)
WIES Public 254.58 nil Target Residential High Care 10941 99.92%
WIES Private 19.92 nil Target
WIES Renal (Public & Private) 31.44 123.92% Nursing Home Type
WIES Public & Private Total 305.94
WIES DVA 30.98 124% NHT Non DVA 378 nil Target
WIES TAC 0.45 0.45% NHT DVA 783 349.96%
WIES Total 337.37 Nursing Home Type Bed Days Total 1161
Performance
to Target %
2013/14 Bed
Days
2011/12 Bed
Days
Performance
to Target %
20113/14
Occupancy %
2013/14
Activity
Achieved
Mr Graham Sheppard Board Chair 20th August,2014
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
11
Report of Operations Services to our community & activity achieved
Hospital 2012/13 2013/14
Total Multistay Inpatient Separations* 319 250
Total Same Day Separations* 272 419
Bed Days* 2,915 2,969 include:
Total Wies 384.43 337.37
% Occupancy Rate Staffed Beds 53% 54%
Average Length of Stay ** 3.2 2.8 · Visiting Medical Specialists
% Public Bed Days 83% 70% · Radiology Services
% Private Bed Days 17% 30% · Ophthalmology Services
Obstetrics / Gynaecology 19 10 · Podiatry Services
Operations / Procedures 131 126 · Psychology Services
Urgent Care Presentations 1,570 1,325 · Drug & Alcohol
Glenelg House Residential Care .Physiotherapy
Residents Accommodated 39 37 .Speech Therapy
Bed Days 10,912 10,941
Average Daily Occupancy 29.89 29.97
% Occupancy Rate Full Year 99.65% 99.92%
Planned Activity Group
Attendances 1,050 1,463
District Nurse * Does not include Newborn transfers
Home Visits 4,133 4,298 ** Excludes Nursing Home Type
Kilometres Travelled 17,653 17,733 *** Includes inpatients
Community Health
Attendance (contacts) 637 506
Allied Health
Physiotherapy Attendance *** 1,931 2,274
Speech Therapy Attendance *** 25 7
Dietetics *** 72 129
Occupational Therapist *** 100 87
Meals Produced
Hospital / Residential Care / Other 71,178 69,625
Meals on Wheels (HACC Assessed) 4,892 4,234
Home Maintenance Program (HACC Service
Number of Clients 107 98
Number of visits 1,119 1,051
Number of Hours 1,209 1,115
· Audiology
· Child Maternal Health
Other services facilitated from
Casterton Memorial Hospital
through private practitioners
Report on Operations including statutory compliance The Casterton Memorial Hospital conducts its activities with compliance to many Government Acts, Regulations and Standards. It is a legislative requirement that we provide, where applicable, specific information in support of our compliance.
The Casterton Memorial Hospital is a public health facility established under the Health Services Act 1988. The responsible Ministers are detailed on Page 2 of this report.
Direction 4.5.5.1 - Insurance I, Owen Stephens, certify that the Casterton Memorial Hospital has complied with Ministerial
Direction 4.5.5.1 - Insurance.
Owen P Stephens Chief Executive Officer Casterton 20th August 2014 .
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
12
Industrial Relations Casterton Memorial Hospital reports no lost days in 2013/2014 through industrial accidents or disputes Occupational Health & Safety Occupational Health & Safety forms an integral part of the day to day operation of Casterton Memorial Hospital. The Safe Environment / OH&S Committee consist of representatives from each of the designated work group areas as well as management representatives. This committee meets quarterly to discuss and address any concerns or issues that may arise and undertake regular inspections of the workplace. All Designated Work Group Representatives undergo the initial 5 Day Course for OH&S Representatives along with regular refresher courses. Staff are encouraged to act and work in a safe manner and to report any incidents or near misses. Through the operation of the Safe Environment/OH&S Committee, Minimal Handling Committee, staff education and incident reporting, through VHIMS, Casterton Memorial Hospital is continuing to ensure the safety of staff, patients and visitors.
The Casterton Memorial Hospital Work-Safe Industry indicative performance rating is 0.755211. This represents that the comparison of Casterton Memorial Hospital claim costs compared to remuneration is 24.47% better than the average for our industry over the past three years. No workcover claims were registered during 2013-2014 and the facility has currently a nil claims history.
Workforce Data During the 2013/14 year Casterton Memorial Hospital employed a total of 102 staff, 40 full-time, 61 part time and 11 casual across the labour categories as detailed in the following table. Statistics provided are consistent with information provided in the entity’s MDS/F1 datasets which are reported on a monthly
basis to the Department of Health. Condition of employment is that Casterton Memorial Hospital employees will adhere to the values as outline in the Code of Conduct for Victorian Public Sector Employees (No 1 )2007 and CMH Code of Conduct Policy.
Labour Category – Full Time equivalent (FTE)
Category Staffing June Current Month June Year to Date
2013 2014 2013 2014 2013 2014
Nursing 54 56 37.32 43.40 37.58 43.28
Administration & Clerical 10 12 8.24 8.91 8.42 8.94
Hotel & Allied Services 48 44 29.12 23.61 31.23 24.19
Ancillary Staff (Allied health) 0 0 0 0 0
Additional Information In compliance with the requirements of FRD 22C Standard Disclosures in the Report of Operations, details in respect of the items listed below have been retained by Casterton Memorial Hospital and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):
(a) A statement of pecuniary interest has been completed;
(b) Details of publications produced by the Department about the activities of the Health Service and where they can be obtained;
(c) Details of changes in prices, fees, charges, rates and levies charged by the Health Service; (d) Details of major promotional, public
relations and marketing activities
undertaken by the Health Service to develop community awareness of the Health Service and its services;
(e) Details of assessments and measures undertaken to improve the occupational health and safety of employees;
(f) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations;
(g) A list of major committees sponsored by the Health Service, the purposes of each committee, and the extent to which the purposes have been achieved;
(h) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
13
Carers Recognition Act 2012 The Act recognises, promotes and values the role of people in care relationships. Casterton Memorial Hospital understands the different needs of persons in care relationships and that care relationships bring benefits to the patients, their carers and to the community. Casterton Memorial Hospital takes all practicable measures to ensure that its employees, agents and carers have an awareness and understanding of the care relationship principles and this is reflected in our commitment to a model of patient and family centred care and to involving carers in the development and delivery of our services.
Consultancies During the 2013/14 financial year Casterton Memorial Hospital reports $13,720 in consultancy costs, (exclusive of GST) less than $10,000 per engagement. No of engagements =3
Building Act 1993 Casterton Memorial Hospital complies with the building and maintenance provisions of the Building Act 1993 in accordance with the Minister for Finance Guidelines Building Act 1993/Standards for Publicly Owned Buildings/November, 1994.
Freedom of Information The Victorian Freedom of Information Act 1982 (FOI Act) provides the right for members of the public to obtain information held by the Casterton Memorial Hospital and consumers are entitled to access their medical record through the Freedom of Information process. Five (5) Freedom of Information requests were processed this Financial Year. Applications are to be directed to the nominated Officer, Mr Owen Stephens. A fee, plus charges for associated costs may apply in accordance with the Act.
Protective Disclosure Act 2012 (the Act) The Casterton Memorial Hospital has policies and procedures in place to enable total compliance with the Act, and provides a safe environment in
which disclosures can be made, people are protected from reprisal and the investigation process is clear and provides a fair outcome. The privacy of all individuals involved in a disclosure is assured of protection at all times. Casterton Memorial Hospital is committed to the principals of the Act and at no time will improper conduct by the Casterton Memorial Hospital or any of its employees be condoned.
Disclosures
Since the introduction of the Act in 2012 there have been no disclosures received and no notification of disclosures to the Ombudsman or any other external agency.
National Competition Policy Casterton Memorial Hospital has implemented competitive neutral pricing principles to all contracts for services provided, to ensure a level playing field is maintained in accordance with National Competition Policy including the requirements of the Government policy statement, Competitive Neutrality Policy, Victoria; and subsequent reforms.
Contract Disclosures There were no contracts commenced or completed during this reporting period to which the Victorian Industry Participation Policy (VIPP) Act 2003 applied.
Equal Employment Opportunity – Merit & Equity The Board of Management at Casterton Memorial Hospital has a firm commitment to ensure equity principles in the workforce are maintained. Human Resource policies and practices give due consideration to public authorities ‘Code of Conduct’ and the Equal Employment Opportunity (EEO) Act, 1995. The facility provides extensive opportunities for staff professional development.
Compliance with Australian/New Zealand Risk Management Standard I, Owen Stephens certify that the Casterton Memorial Hospital has risk management processes in place
consistent with the AS/NZS Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Audit Committee verifies this assurance and that the risk profile of the Casterton Memorial Hospital has been critically reviewed within the last 12 months.
Owen P Stephens
Chief Executive Officer
Casterton
20th August 2014
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
14
Finance & Activity Overview The financial statements of account for the year ended 30 June, 2014 have been completed in accordance with the Australian Audit and Accounting Standards and the Financial Management Act 1994. We have completed the year with a net surplus result, before capital and specific items, of $16,191. This positive result is on budget and is comparable to our 2012/13 result of $22,878. This is a pleasing result given the constraints of a tight and less flexible budget as compared to prior years. Contributing items to our positve 2013/14 Operating result include well managed overall expenditure, under budget salaries & wages position, consistent private patient revenue and our over target position for Department of Health funded patient activity. Entity Comprehensive Result of ($476,508) is a $167,236 improvement on the prior year result. The improved result is a combination of $93,705 of increased capital revenue and $80,218 reduced depreciation expense. The $9,179,661 Comprehensive Result for the year includes a $9,656,169 increase in the net fair value of the facility’s fixed assets as a result of a revaluation by the Valuer-General Victoria (VGV) Valuers as at 30 June 2014. Our current asset ratio of 1.5 is an improvement on the 1.39 reported in 2012/13. Casterton Memorial Hospital has consistently over the past 5 years recorded an asset ratio well above the .7 Department benchmark. Cash has been well managed with cash on hand as at 30 June 2014 totalling $2,593,340 (excluding Joint Venture). This years’ cashflow was subject to a $263,300 recall for prior year under achieved activity, nevertheless we have still managed an increase on our 2012/13 holdings by $25,924. Current year interest earned on Term Deposit was $97,326 compared to prior year $109,862, a result of the falling interest rate. Cash holdings combined with current assets remaining in excess of current liabilities by $1,053,853 confirms a stable liquidy position for Casterton Memorial Hospital as at 30 June 2014. Entity operating expenditure for 2013/14 year totalled $8.767M, less than a 1% increase on the prior year. Salary, employee benefits and other labour costs accounted for $6.324M or 72% of 2013/14 total which is consistent with the prior year.
The $2.443M balance, non salary related costs, includes major items of $1.009M Joint Venture in leasing/expenditure, $0.441M supplies & consumables, $0.293M IT costs and $0.195M fuel, light & power expenses. Total revenues for the current year totalled $9.150M, a 1.17% increase on prior year with Operating revenue of $8.784M and $0.366M being Capital Purpose income. Current year revenues include $105,137 for over target inpatient activity and $150,220 Commonwealth Aged Care funding. Total cash grants of $4,331,909 received from the Department in 2013/14 recorded a shortfall of $384,759 from the previous year. The offset of this shortfall was the recall of $263,300 and reduced activity funding of $137,121. Capital grants received in 2013/14 totalled $42,877 compared to $141,326 in the prior year. The Hospital exceeded set targets with DVA inpatients, Nursing Home Type inpatients, Dialysis treatments and met target for TAC. The net result achieved additional revenue earned of $105,137. Our 30 bed high care residential activity remained consistent with a full year occupancy rate of 99.92%. Our extensive primary care, aged and community based services have benefited from extended services providing an additional $27,317 in fees and charges. Overall the 2013/14 finanical year for Casterton Memorial Hospital has been very pleasing. We have managed our expenditure within less than a 1% increase on prior year, maintained a bottom line revenue above budget, increased capital equipment to the value of $200,026, increased our cash on hand and retained our positive asset ratio. We have increased our clinical training program with the placement of two Nurse Graduates in 2014, retained our level of staff resources and provided a consistent and balanced range of services to our community. Casterton Memorial Hospital achieved its financial targets for the 2013/14 financial year and plans to sustain this positive performance in 2014/15.
B Toma AOG/Finance 20th Augusty 2014
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
15
Finance & Activity Overview cont:
59%
22%
.31%
3%
10%
3%1%
1.47%
0.50%
Total Revenue % - 2013/14(Excluding Joint Venture Revenue)
Government Grants
Commonwealth Subsidies
G'ment Indirect Contributions
Patient Fees
Residential Care & AccommFeesCommercial Activities & OtherRevenueInterest
Capital
Donations/Bequests/Other
$4,642
$1,735
$25
$210
$772
$271$97 $116
$39
Total Revenue $'000s - 2013/14(Excluding Joint Venture Revenue)
Government Grants
Commonwealth Subsidies
G'ment Indirect Contributions
Patient Fees
Residential Care & AccommFeesCommercial Activities & OtherRevenueInterest
Capital
Donations/Bequests/Other
1933
738
20
298
378
783
Acute Ward Bedday Activity 2013/14
Public Inpatient
Pte Inpatient
DVA Inpatient
Dialysis
NHT Days DVA
NHT Days Public
68%
2%
7%
1%
4%
6%
13%
Total Operating Expense % - 2013/14(Excluding Joint Venture expenses)
S&W
LSL
Superannuation
Work Cover
Non Salary Labour Costs
Supplies & Consumables
Other Expenses
$5,100
$147
$495
$53
$296
$441
$992
Total Operating Expense $'000s -2013/14
(excluding Joint Venture Expenses) S&W
LSL
Superannuation
Work Cover
Non Salary LabourCosts
Supplies &Consumables
Other Expenses
4298
2497
506
1463
Primary Care Activity / Visits 2013/14
District Nurse visits
Allied Health visits
Community Health visits
Day Centre visits
10880
10900
10920
10940
10960
2013/14 2012/13 2011/12 2010/11 2009/10
Residential Aged Care Bed Days over 5 yr period
99.0%
99.2%
99.4%
99.6%
99.8%
100.0%
100.2%
2013/14 2012/13 2011/12 2010/11 2009/10
Residential Aged Care Annual Occupancy % over 5 yr period
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
16
Casterton Memorial Hospital
Financial Report 2013 - 2014
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
17
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
18
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
19
Casterton Memorial Hospital Annual Report 2013/2014
Note Total Total
2014 2013
$ $
Revenue from Operating Activities 2 8,686,236 8,662,019
Revenue from Non-operating Activities 2 97,326 109,862
Employee Expenses 3 (6,027,687) (5,985,315)
Non Salary Labour Costs 3 (296,474) (339,207)
Supplies & Consumables 3 (441,344) (423,400)
Joint Venture Expenses 3 (888,618) (616,451)
Administrative Expenses 3 (385,340) (415,401)
Other Expenses From Continuing Operations3 (727,908) (969,229)
Net Result Before Capital &
Specific Items
16,191 22,878
Capital Purpose Income 2 366,421 272,716
Depreciation 4 (859,120) (939,338)
NET RESULT FOR THE YEAR (476,508) (643,744)
Other comprehensive incomeNet fair value revaluation on Non
Financial Assets 9,656,169 1,405,506
COMPREHENSIVE RESULT FOR THE YEAR 9,179,661 761,762
This Statement should be read in conjunction with the accompanying notes.
Casterton Memorial Hospital
Comprehensive Operating Statement
For the Year Ended 30 June 2014
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
20
Casterton Memorial Hospital Annual Report 2013/2014
Note Total Total
2014 2013
$ $
Current Assets
Cash and Cash Equivalents 5 2,750,308 2,703,647
Receivables 6 332,623 260,496
Inventories 7 72,279 67,909
Total Current Assets 3,155,210 3,032,052
Non-Current Assets
Receivables 6 307,432 291,562
Property, Plant & Equipment 8 24,012,366 15,085,707
Investment Properties 9 50,000 -
Total Non-Current Assets 24,319,798 15,377,269
TOTAL ASSETS 27,525,008 18,409,321
Current Liabilities
Payables 10 413,061 573,971 Provisions 11 1,688,296 1,609,710
Total Current Liabilities 2,101,357 2,183,681
Non-Current LiabilitiesProvisions 11 211,488 193,138
Total Non-Current Liabilities 211,488 193,138
TOTAL LIABILITIES 2,312,845 2,376,819
NET ASSETS 25,212,163 16,032,502
EQUITY
Property, Plant & Equipment Revaluation Surplus 12a 19,796,870 10,140,701
Contributed Capital 12b 2,293,608 2,293,608
Accumulated Surpluses 12c 3,121,685 3,598,193
TOTAL EQUITY 12d 25,212,163 16,032,502
Commitments 15Contingent Assets and Capital Liabilities 16
This Statement should be read in conjunction with the accompanying notes.
Balance SheetAs at 30 June 2014
Casterton Memorial Hospital
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
21
Caste
rton M
em
orial Hospital Annual Report
2013/2
014
Caste
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Mem
ori
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Sta
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Casterton Memorial Hospital 106th Annual Report 2013 – 2014
22
Casterton Memorial Hospital Annual Report 2013/2014
Note Total Total
2014 2013
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Grants from Government 6,403,808 6,056,716
Patient and Resident Fees Received 1,003,649 1,125,210
Donations and Bequests Received 39,264 30,805
GST Received from/(paid to) ATO (2,461) (1,483)
Interest Received 97,326 109,862
Other Receipts 1,483,179 1,565,208
Employee Expenses Paid (5,930,751) (5,826,338)
Non Salary Labour Costs (94,507) (128,570)
Payments for Supplies & Consumables (1,611,883) (1,233,096)
Fee for Service Medical Officers (201,967) (210,637)
Other Payments (997,100) (1,068,505)
Cash Generated from Operations 188,557 419,172
Capital Grants from Government 42,877 141,326
NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES13
231,434 560,498
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Non-Financial Assets (212,264) (115,133)
Proceeds from sale of Non-Financial Assets 27,491 -
NET CASH INFLOW/(OUTFLOW)
FROM INVESTING ACTIVITIES (184,773) (115,133)
NET INCREASE/(DECREASE) IN CASH HELD 46,661 445,365
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 2,703,647 2,258,282
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 5 2,750,308 2,703,647
This Statement should be read in conjunction with the accompanying notes
Cash Flow Statement For the Year Ended 30 June 2014
Casterton Memorial Hospital
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
23
Index Note Page
1 Statement of Significant Accounting Policies 24 > 40
2 Revenue 41
2a Analysis of Revenue by Source 42
2b Patient and Resident Fees 43
2c Net Gain/Loss pm Disposal of Non-Financial Assets 43
3 Expenses 44
3a Analysis of Expenses by Source 45
4 Depreciation 46
5 Cash & Cash Equivalents 46
6 Receivables 47
7 Inventories 47
8 Property, Plant & Equipment 48 > 52
9 Investment Properties 53
10 Payables 53
11 Provisions -Employee Benefits and Related On-Costs 54
12 Reserves 55
13 Reconciliation of Net Result for the Year to Net Cash
Inflow/(Outflow) from Operations Activities 55
14 Financial Instruments 56 > 62
15 Commitments for Expenditure 63
16 Contingent Assets or Contingent Liabilities 63
17 Remuneration of Auditors 63
18 Ex Gratia Payments 63
19 Operating Segments 64
20 Jointly Controlled Operations & Assets 65
21a Responsible Persons Disclosures 66
21b Executive Officer Disclosures 66
22 Events Occurring after the Balance Sheet Date 66
23 Superannuation 67
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
24
Note 1: Statement of significant accounting policies These annual financial statements represent the audited general purpose financial statements for Casterton Memorial Hospital for the period ending 30 June 2014. The purpose of the report is to provide users with information about Casterton Memorial Hospitals’ 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 Australian Accounting Standards (AASs), 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 Minister for Finance.
Casterton Memorial Hospital is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” Health Services under the AAS’s.
The annual financial statements were authorised for issue by the Audit & Compliance Committee of Casterton Memorial Hospital on 14/08/2014.
(b) 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 set out below have been applied in preparing the financial statements for the year ended 30 June 2014, and the comparative information presented in these financial statements for the year ended 30 June 2013.
The going concern basis was used to prepare the financial statements.
These financial statements are presented in Australian dollars, the functional and presentation currency of the Hospital.
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 these items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
The Financial Statements are prepared in accordance with the historical cost convention, except for:
● non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;
● available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised (i.e. other comprehensive income – items that may be reclassified subsequent to net result).
● the fair value of assets other than land is generally based on their depreciated replacement value.
Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates, relate to:
the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(k);
superannuation expense (refer to note 1(h)); and
actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 1(l).
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Consistent with AASB 13 Fair Value Measurement, Casterton Memorial Hospital determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant FRDs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair values disclosures, Casterton Memorial Hospital has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, Casterton Memorial Hospital determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria (VGV) is Casterton Memorial Hospital’s independent valuation agency.
Casterton Memorial Hospital, in conjunction with VGV monitors the changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required.
(c) Reporting entity The financial statements include all the controlled activities of Casterton Memorial Hospital. Its principle address is: 63 – 69 Russell St, Casterton 3311
A description of the nature of Casterton Memorial Hospital’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements.
Objectives and funding Casterton Memorial Hospital mission is to meet the health and wellbeing needs of our community by delivering a comprehensive range of high quality, innovative and valued health services, as well as improve the quality of life to Victorians.
Casterton Memorial Hospital is predominantly funded by accrual based grant funding for the provision of outputs.
(d) Principles of consolidation In accordance with AASB 127 Consolidated and Separate Financial Statements, the consolidated financial statements of Casterton Memorial Hospital incorporates the assets and liabilities of all entities controlled by Casterton Memorial Hospital as at 30 June 2014, and their income and expenses for that part of the reporting period in which control existed. Control exists when Casterton Memorial Hospital has the power to govern the financial and operating policies of a Health Service so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account.
Intersegment Transactions Transactions between segments within Casterton Memorial Hospital have been eliminated to reflect the extent of the Health Service's operations as a group.
Jointly Controlled Assets Interests in jointly controlled assets or operations are not consolidated by Casterton Memorial Hospital, but are accounted for in accordance with the policy outlined in Note 1 (k) Financial Assets.
(e) Scope & presentation of financial statements Fund Accounting Casterton Memorial Hospital operates on a fund accounting basis and maintains three funds:
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Operating, Specific Purpose and Capital Funds. The Health Service's Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds.
Services Supported By Health Services Agreement and Services Supported By Hospital and Community Initiatives Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and includes Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (H&CI) are funded by Casterton Memorial Hospital's own activities or local initiatives and/or the Commonwealth.
Residential Aged Care Service The following Residential Aged Care Service operations are an integral part of Casterton Memorial Hospital and share its resources.
– Glenelg House Nursing Home (located in Casterton) An apportionment of land and buildings has been made based on floor space. The results of the two operations have been segregated based on the actual revenue earned and expenditure incurred by each operation in Note 2b to the financial statements.
Comprehensive operating statement The Comprehensive operating statement includes the subtotal entitled “Net Result before Capital & Specific Items” to enhance the understanding of the financial performance of Casterton Memorial Hospital. This subtotal reports the result excluding items such as capital grants; assets received or provided free of charge, depreciation, expenditure using capital purpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of these items is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The “Net Result before Capital & Specific Items” is used by the management of Casterton Memorial Hospital, the Department of Health and the Victorian Government to measure the ongoing operating performance of Health Services.
Capital and specific items, which are excluded from this sub-total, comprise: • capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets. It also includes donations of plant and equipment (refer Note 1 (g)). Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.
• specific income/expense, comprises the following items, where material: – Non-current asset revaluation increments/decrements – Diminution in investments
• impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), which have been recognised in accordance with Note 1 (k)
• depreciation and amortisation, as described in Note 1 (h)
• assets provided or received free of charge, (refer to Notes 1 (g) and (i)); and
• expenditure using capital purpose income, which comprises expenditure which either falls below the asset capitalization threshold or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that expenditure is from capital purpose income.
Balance Sheet Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be recovered/settled more than 12 months after reporting period), are disclosed in the notes where relevant.
Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner changes in equity from opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income.
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Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.
Rounding All amounts shown in the financial statements are expressed to the nearest $1.00 unless otherwise stated. Minor discrepancies in tables between totals and sum of components are due to rounding.
Comparative Information Where necessary the previous year’s figures have been reclassified to facilitate comparisons.
(f) Change in accounting policies AASB Fair Value Measurement AASB 13 establishes a single source of guidance for all fair value measurements. AASB 13 does not change when a health service is required to use fair value, but rather provides guidance on how to measure fair value under Australian Accounting Standards when fair value is required or permitted. Casterton Memorial Hospital has considered the specific requirements relating to highest and best use, valuation premise, and principal (or most advantageous) market. The methods, assumptions, processes and procedures for determining fair value were revised and adjusted where applicable. In light of AASB 13, Casterton Memorial Hospital has reviewed the fair value principles as well as its current valuation methodologies in assessing the fair value, and the assessment has not materially changed the fair value recognised.
AASB 13 has predominantly impacted the disclosures of Casterton Memorial Hospital. It requires specific disclosures about fair value measurements and disclosures of fair values, some of which replace existing disclosure requirements in other standards, including AASB 7 Financial Instruments: Disclosures.
The disclosure requirements of AASB 13 apply prospectively and need not to be provided for comparative periods, before initial application. Consequently, comparatives of these disclosures have not been provided for 2012-2013, except for financial instruments, of which the fair value disclosures are required under AASB 7 Financial Instruments: Disclosures.
AASB 119 Employee Benefits In 2013-2014, Casterton Memorial Hospital has applied AASB 119 Employee Benefits (Sep 2011, as amended), and related consequential amendments for the first time.
The revised AASB 119 changes the accounting for defined benefit plans and termination benefits. The most significant change relates to the accounting for changes in defined benefit obligation and plan assets. As the current accounting policy is for the Department of Treasury and Finance to recognise and disclose the State’s defined benefit liabilities in its financial statements, changes in defined benefit obligations and plan assets will have limited impact on Casterton Memorial Hospital.
The revised standard also changes the definition of short-term employee benefits. These were previously benefits that were expected to be settled within 12 months after end of the reporting period in which the employees render the related service, however, short-term employee benefits are now defined as benefits expected to be settled wholly within 12 months after the end of the reporting period in which the employees render the related service. As a result, accrued annual leave balances which were previously classified as short-term employee benefits no longer meet this definition and are now classified as long-term employee benefits. This has resulted in a change of measurement for the annual leave provision from an undiscounted to discounted basis.
Casterton Memorial Hospital considers that this change in classification has not materially altered its measurement of the annual leave provision.
(g) Income from transactions 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 Casterton Memorial Hospital 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 is, where applicable, net of returns, allowances and 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 Casterton Memorial Hospital gains control of the
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underlying assets irrespective of whether conditions are imposed on Casterton Memorial Hospital’s use of the contributions.
Contributions are deferred as income in advance when Casterton Memorial Hospital has a present obligation to repay them and the present obligation can be reliably measured.
Indirect Contributions from the Department of Health – Insurance is recognised as revenue following advice from the Department of Health. – Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line
with the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 05/2013 (update for 2012-2013).
Patient and Resident Fees Patient fees are recognised as revenue at the time the invoices are raised.
Revenue from commercial activities Revenue from commercial activities is recognised at the time invoices are raised.
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.
Sale of Investments The gain/loss on the sale of investments is recognised when the investment is realised.
Fair value of assets and services received free of charge or for nominal consideration Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another Health Service or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not received as a donation.
Other income Other income includes non-property rental, dividends, forgiveness of liabilities, and bad debt reversals.
(h) Expense recognition Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Cost of goods sold Costs of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item/s from inventories.
Employee expenses Employee expenses include:
wages and salaries;
annual leave;
sick leave;
long service leave; and
superannuation expenses which are reported differently depending upon whether employees are members of defined benefit or defined contribution plans.
Defined contribution superannuation plans In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expenses when incurred.
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Defined benefit superannuation plans The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the contributions made by Casterton Memorial Hospital to the superannuation plans in respect of the services of current Health Service staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based upon actuarial advice.
Employees of Casterton Memorial Hospital are entitled to receive superannuation benefits and Casterton Memorial Hospital contributes to both the defined benefit and defined contribution plans. The defined benefits plan(s) provide benefits based on years of service and final average salary.
The name and details of the major employee superannuation funds and contributions made by Casterton Memorial Hospital are disclosed in note 23: Superannuation.
Depreciation All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives are depreciated (i.e. excludes land assets held for sale and investment properties). Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.
Intangible produced assets with finite lives are depreciated as an expense from transactions on a systematic basis over the asset’s useful life. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually, and adjustments made where appropriate. This depreciation charge is not funded by the Department of Health. Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives.
The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.
2014 2013
Buildings 2 to 40 Years 2 to 40 Years Plant & Equipment 8 to 10 Years 8 to 10 Years Medical Equipment 8 to 10 Years 8 to 10 Years Computers and Communication 1 to 5 Years 1 to 5 Years Furniture and Fitting 8 to 10 Years 8 to 10 Years Motor Vehicles 1 to 5 Years 1 to 5 Years Intangible Assets 1 to 5 Years 1 to 5 Years
As part of the buildings valuation, building values were separated into components and each component assessed for its useful life which is represented above.
Intangible produced assets with finite lives are depreciated as an expense from transactions on a systematic basis over the asset’s useful life.
Other operating expenses Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:
Supplies and consumables Supplies and service 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.
Bad and doubtful debts Refer to Note 1 (k) Impairment of financial assets.
Fair value of assets, services and resources provided free of charge or for nominal consideration Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.
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(i) Other comprehensive income
Other comprehensive income measures the change in volume or value of assets or liabilities that do not result from transactions.
Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
Revaluation gains/(losses) of non-financial physical assets Refer to Note 1 (k) Revaluations of non-financial physical assets.
Net gain/ (loss) on disposal of non-financial assets Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying value of the asset at the time.
Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes:
realised and unrealised gains and losses from the revaluations of financial instruments at fait value;
impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1 (k); and
disposals of financial assets and derecognition of financial liabilities
Revaluations of financial instrument at fair value Refer to Note 1 (k) Financial instruments. Share of net profits/(losses) of associates and joint entities, excluding dividends. Refer to Note 1 (d) Basis of consolidation.
Other gains/(losses) from other comprehensive income Other gains/(losses) include:
the revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and
transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.
(j) Financial instruments FFiinnaanncciiaall iinnssttrruummeennttss aarriissee oouutt ooff ccoonnttrraaccttuuaall aaggrreeeemmeennttss tthhaatt ggiivvee rriissee ttoo aa ffiinnaanncciiaall aasssseett ooff oonnee HHeeaalltthh
SSeerrvviiccee aanndd aa ffiinnaanncciiaall lliiaabbiilliittyy oorr eeqquuiittyy iinnssttrruummeenntt ooff aannootthheerr HHeeaalltthh SSeerrvviiccee.. DDuuee ttoo tthhee nnaattuurree ooff tthhee
CCaasstteerrttoonn MMeemmoorriiaall HHoossppiittaall’’ss aaccttiivviittiieess,, cceerrttaaiinn ffiinnaanncciiaall aasssseettss aanndd ffiinnaanncciiaall lliiaabbiilliittiieess aarriissee uunnddeerr ssttaattuuttee
rraatthheerr tthhaann aa ccoonnttrraacctt.. SSuucchh ffiinnaanncciiaall aasssseettss aanndd ffiinnaanncciiaall lliiaabbiilliittiieess ddoo nnoott mmeeeett tthhee ddeeffiinniittiioonn ooff ffiinnaanncciiaall
iinnssttrruummeennttss iinn AAAASSBB 113322 FFiinnaanncciiaall IInnssttrruummeennttss:: PPrreesseennttaattiioonn.. FFoorr eexxaammppllee,, ssttaattuuttoorryy rreecceeiivvaabblleess aarriissiinngg ffrroomm
ttaaxxeess,, ffiinneess aanndd ppeennaallttiieess ddoo nnoott mmeeeett tthhee ddeeffiinniittiioonn ooff ffiinnaanncciiaall iinnssttrruummeennttss aass tthheeyy ddoo nnoott aarriissee uunnddeerr
ccoonnttrraacctt..
Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. The following refers to financial instruments unless otherwise stated.
Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets 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, less any impairment.
Loans and receivables category includes cash and deposits (refer to Note 1(k)), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.
Held-to-maturity investments If Casterton Memorial Hospital has the positive intent and ability to hold nominated investments to maturity, then such financial assets may be classified as held-to-maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial
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recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses.
Casterton Memorial Hospital makes limited use of this classification because any sale or reclassification of more than an insignificant amount of held-to-maturity investments not close to their maturity, would result in the whole category being reclassified as available-for-sale. Casterton Memorial Hospital would also be prevented from classifying investment securities as held-to-maturity for the current and the following two financial years.
The held-to-maturity category includes certain term deposits and debt securities for which the entity concerned intends to hold to maturity.
Available-for-sale financial assets Available-for-sale financial instrument assets are those designated as available-for-sale or not classified in any other category of financial instrument asset. Such assets are initially recognised at fair value. Subsequent to initial recognition, gains and losses arising from changes in fair value are recognised in ‘other comprehensive income’ until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in net result for the period. Fair value is determined in the manner described in Note 18.
Financial liabilities at amortised cost Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method.
Financial instrument liabilities measured at amortised cost include all of Casterton Memorial Hospital’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.
Offsetting financial instruments Financial instrument assets and liabilities are offset and the net amount presented in the consolidated balance sheet when, and only when, the Health Service concerned has a legal right to offset the amounts and intend either to settle on a net basis or to realise the asset and settle the liability simultaneously.
(k) Assets Cash and Cash Equivalents 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 3 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 current interest bearing liabilities in the balance sheet.
Receivables Receivables consist of:
Statutory receivables, which includes predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and
Contractual receivables, which include mainly debtors in relation to goods and services, loans to third parties, accrued investment income and finance lease receivables.
Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be
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uncollectible are written off. A provision for doubtful debts is recognised where there is objective evidence that the debts may not be collected and bad debts are written off when identified.
Investments and other financial assets Investments are recognised and derecognised on trade date where purchase or sale of an investment is under contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.
Investments are classified in the following categories:
financial assets at fair value through profit & loss;
held-to-maturity;
loans and receivables; and
available-for-sale financial assets.
Casterton Memorial Hospital classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.
Casterton Memorial Hospital assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
All financial assets, except those measured at fair value through profit and loss are subject to annual review for impairment.
Inventories Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It includes land held for sale and excludes depreciable assets.
Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value.
Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.
The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.
Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis .
Cost for all other inventory is measured on the basis of weighted average cost.
Property, Plant and Equipment All non current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government are transferred at their carrying amount.
More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 8 Property, plant and equipment.
The initial cost for non-financial physical assets under finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.
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 constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply.
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Land and Buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment.
Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned.
Leasehold improvements The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements.
Revaluations of non-current physical assets Non-current physical assets measured at fair value are revalued in accordance with FRD 103E Non-current physical assets. This revaluation process normally occurs at least every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRD’s. Revaluation increments or decrements arise from differences between an asset’s carrying value and fair value.
Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as revenue in the net result.
Revaluation decrements are recognised in ‘other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment.
Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.
Revaluation surplus is not transferred to accumulated funds on derecognition of the relevant asset.
In accordance with FRD 103E Casterton Memorial Hospital’s non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.
Investment properties Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the health services.
Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Health Service.
Subsequent to initial recognition at cost, investment properties are revalued to fair value, determined annually by independent valuers. Fair values are determined based on a market comparable approach that reflects recent transaction prices for similar properties. Investment properties are neither depreciated nor tested for impairment.
Rental revenue from leasing of investment properties is recognised in the comprehensive operating statement in the periods in which it is receivable on a straight line basis over the lease term.
Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
Disposal of non-financial assets Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement. Refer to note 1(i) – ‘comprehensive income’.
Impairment of non-financial assets Goodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired.
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All other non-financial assets are assessed annually for indications of impairment, except for:
inventories;
investment properties that are measured at fair value;
non-current physical assets held for sale; and
assets arising from construction contracts.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.
If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.
It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of the future cash flows expected to be obtained from the asset and fair value less costs to sell.
Investments in jointly controlled assets and operations In respect of any interest in jointly controlled assets, Casterton Memorial Hospital recognises in the financial statements:
its share of jointly controlled assets;
any liabilities that it has incurred;
its share of liabilities incurred jointly by the joint venture;
any income earned from the selling or using of its share of the output from the joint venture; and
any expenses incurred in relation to being an investor in the joint venture.
For jointly controlled operations Casterton Memorial Hospital recognises:
the assets that it controls;
the liabilities that it incurs;
the expenses that it incurs; and
the share of income that it earns from selling outputs of the joint venture.
Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
the rights to receive cash flows from the asset have expired; or
Casterton Memorial Hospital retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or
Casterton Memorial Hospital has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset; or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where Casterton Memorial Hospital has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of Casterton Memorial Hospital’s continuing involvement in the asset. Impairment of financial assets At the end of each reporting period Casterton Memorial Hospital assesses whether there is objective evidence that a financial asset or group of financial asset is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.
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Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed. Bad debt written off by mutual consent and the allowance for doubtful debts are classified as ‘other comprehensive income’ in the net result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has been less than its cost price for a period of 12 or more months, the financial asset is treated as impaired.
In order to determine an appropriate fair value as at 30 June 2014 for its portfolio of financial assets, Casterton Memorial Hospital obtained a valuation based on the best available advice using an estimated valuation method provided by a reputable financial institution. This value was compared against valuation methodologies provided by the issuer as at 30 June 2014. These methodologies were critiqued and considered to be consistent with standard market valuation techniques.
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.
Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes: - realised and unrealised gains and losses from revaluations of financial instruments that are designated at
fair value through profit or loss or held-for-trading; - impairment and reversal of impairment for financial instruments at amortised cost; and - disposals of financial assets and derecognition of financial liabilities
Revaluations of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets.
(l) Liabilities Payables Payables consist of:
contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to Casterton Memorial Hospital prior to the end of the financial year that are unpaid, and arise when Casterton Memorial Hospital becomes obliged to make future payments in respect of the purchase of those goods and services. The normal credit terms for accounts payable are usually Nett 30 days.
statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.
Provisions Provisions are recognised when Casterton Memorial Hospital 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. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.
Employee Benefits The provision arises for the benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.
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Wages and salaries, annual leave, sick leave and accrued days off Liabilities for wages and salaries, including non-monetary benefits, annual leave accumulating sick leave are all recognised in the provision for employee benefits as ‘current liabilities’, because Casterton Memorial Hospital does not have an unconditional right to defer settlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:
Undiscounted value – if Casterton Memorial Hospital expects to wholly settle within 12 months; or
Present value – if Casterton Memorial Hospital does not expect to settle within 12 months.
Long Service Leave (LSL) Liability for LSL is recognised in the provision for employee benefits. Unconditional LSL is disclosed in the notes to the financial statements as a current liability even where Casterton Memorial Hospital does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:
Undiscounted value – if Casterton Memorial Hospital expects to wholly settle within 12 months; and
Present value – if Casterton Memorial Hospital does not expect to settle within 12 months.
Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.
Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised as a transaction in the Operating Statement.
Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment.
Casterton Memorial Hospital recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
On-costs Provisions for on-costs such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits.
Superannuation liabilities Casterton Memorial Hospital does not recognise any unfunded defined benefit liability in respect of the superannuation plans because Casterton Memorial 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.
Onerous contracts An onerous contract is considered to exist when Casterton Memorial Hospital has a contract under which the unavoidable cost of meeting the contractual obligation exceeds the estimated economic benefits to be received. Present obligations arising under onerous contracts are recognised as a provision to the extent that the present obligation exceeds the estimated economic benefits to be received.
Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an expense in the consolidated comprehensive operating statement.
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(m) Leases 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.
Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases.
Operating leases Entity as lessor Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.
All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.
In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a reduction of rental income over the lease term, on a straight-line basis unless another systematic basis is more appropriate of the time pattern over which the economic benefit of the leased asset is diminished.
Entity as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.
(n) Equity Contributed capital Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributed capital is also treated as contributed capital.
Transfers of net assets arising from administrative restructurings are treated as contributions by owners. Transfers of net liabilities arising from administrative restructures are to go through the comprehensive operating statement.
Property, plant & equipment revaluation surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets.
Financial assets available–for–sale revaluation surplus The available-for-sale revaluation surplus arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold, that portion of the reserve which relates to that financial asset is effectively realised, and is recognised in the comprehensive operating statement. Where a revalued financial asset is impaired that portion of the surplus which relates to that financial asset is recognised in the comprehensive operating statement.
Specific restricted purpose surplus A specific restricted purpose surplus is established where Casterton Memorial Hospital has possession or title to the funds but has no discretion to amend or vary the restriction and/or condition underlying the funds received.
(o) Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 15) 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.
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(p) 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.
(q) Goods and Services Tax (“GST”) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognized as part of the cost of acquisition of the asset or part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
Commitments for expenditure and contingent assets and liabilities are presented on a gross basis
(r) AASs issued that are not yet effective Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2014 reporting period. DTF assesses the impact of all these new standards and advises Casterton Memorial Hospital of their applicability and early adoption where applicable.
As at 30 June 2014, 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.
Casterton Memorial Hospital has not and does not intend to adopt these standards early.
Standard/
Interpretation
Summary Applicable for annual reporting periods beginning on
Impact on public sector entity financial statements
AASB 9 Financial Instruments
This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).
1 Jan 2017 The preliminary assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss.
While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.
AASB 10 Consolidated Financial Statements
This Standard forms the basis for determining which entities should be consolidated into an entity’s financial statements. AASB 10 defines ‘control’ as requiring exposure or rights to variable returns and the ability to affect those returns through power over an investee, which may broaden the concept of control
1 Jan 2014
(not-for-profit entities)
For the public sector, AASB 10 builds on the control guidance that existed in AASB 127 and Interpretation 112 and is not expected to change which entities need to be
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Standard/
Interpretation
Summary Applicable for annual reporting periods beginning on
Impact on public sector entity financial statements
for public sector entities.
The AASB has issued an Australian Implementation Guidance for Not-for-Profit Entities – Control and Structured Entities that explains and illustrates how the principles in the Standard apply from the perspective of not-for-profit entities in the private and public sectors.
consolidated.
Ongoing work is being done to monitor and assess the impact of this standard.
AASB 11 Joint Arrangements
This Standard deals with the concept of joint control, and sets out a new principles-based approach for
determining the type of joint arrangement that exists and the corresponding accounting treatment. The new categories of joint arrangements under AASB 11 are more aligned to the actual rights and obligations of the parties to the arrangement.
1 Jan 2014
(not-for-profit entities)
Based on current assessment, entities already apply the equity method when accounting for joint ventures. It is anticipated that there would be no material impact. Ongoing work is being done to monitor and assess the impact of this standard.
AASB 12 Disclosure of Interests in Other Entities
This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 Separate Financial Statements and AASB 131 Interests in Joint Ventures.
1 Jan 2014
(not-for-profit entities)
The new standard is likely to require additional disclosures and ongoing work is being done to determine the extent of additional disclosure required.
AASB 127 Separate Financial Statements
This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.
1 Jan 2014
(not-for-profit entities)
Current assessment indicates that there is limited impact on Victorian Public Sector entities. Ongoing work is being done to monitor and assess the impact of this standard.
AASB 128 Investments in Associates and Joint Ventures
This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.
1 Jan 2014
(not-for-profit entities)
Current assessment indicates that there is limited impact on Victorian Public Sector entities. Ongoing work is being done to monitor and assess the impact of this standard.
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In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2013-14 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. The AASB Interpretation in the list below is also not effective for the 2013-14 reporting period and is considered to have insignificant impacts on public sector reporting.
AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint
Arrangements Standards. 2013-1 Amendments to AASB 1049 – Relocation of Budgetary Reporting Requirements. 2013-3 Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets. 2013-4 Amendments to Australian Accounting Standards – Novation of Derivatives and Continuation of Hedge
Accounting. 2013-5 Amendments to Australian Accounting Standards – Investment Entities 2013-6 Amendments to AASB 136 arising from Reduced Disclosure Requirements 2013-7 Amendments to AASB 1038 arising from AASB 10 in relation to consolidation and interests of policy
holders 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial
Instruments AASB Interpretation 21 Levies.
(s) Category Groups Casterton Memorial Hospital has used the following category groups for reporting purposes for the current and previous financial years.
Admitted Patient Services (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are delivered in public hospitals, or free standing day hospital facilities, or alcohol and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids.
Outpatient Services (Outpatients) comprises all recurrent health revenue/expenditure on public hospital type outpatient services, where services are delivered in public hospital outpatient clinics.
Aged Care comprises revenue/expenditure form Home and Community Care (HACC) programs, allied Health, Aged Care Assessment and support services.
Primary Health comprises revenue/expenditure for Community Health Services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy.
Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from DH under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health-funded community care units (CCUs) and secure extended care units (SECs).
Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately classified above, including: Public health services including Laboratory testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Kooris liaison officers, immunisation and screening services, Drugs services including drug withdrawal, counselling and the needle and syringe program, Dental Health services including general and specialist dental care, school dental services and clinical education, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.
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Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 2: Revenue HSA HSA H&CI H&CI Total Total
2014 2013 2014 2013 2014 2013
$ $ $ $ $ $
Revenue from Operating Activities
Government Grants
- Department of Health 4,642,107 4,355,734 - - 4,642,107 4,355,734
- Victorian Health Funding Pool - 49,646 - - - 49,646
- State Government - Other
- Other 44,953 3,150 - - 44,953 3,150
- Commonwealth Government
- Residential Aged Care Subsidy 1,734,843 1,584,643 - - 1,734,843 1,584,643
Total Government Grants 6,421,903 5,993,173 - - 6,421,903 5,993,173
Indirect Contributions by Department of
- Insurance 8,748 37,426 - - 8,748 37,426
- Long Service Leave 15,870 68,987 - - 15,870 68,987
Total Indirect Contributions by
Department of Health 24,618 106,413 - - 24,618 106,413
Patient and Resident Fees
- Patient and Resident Fees (refer note 2b) 209,750 226,748 - - 209,750 226,748
- Residential Aged Care (refer note 2b) 560,888 782,227 - - 560,888 782,227
Total Patient & Resident Fees 770,638 1,008,975 - - 770,638 1,008,975
Commercial Activities & Specific Purpose
- Catering 92,533 119,289 - - 92,533 119,289
- Laundry 2,215 2,038 - - 2,215 2,038
- Property Income 48,934 50,752 - - 48,934 50,752
- Research 9,287 11,532 - - 9,287 11,532
- Property Maintenance 52,069 55,237 - - 52,069 55,237
Total Business Units & Specific Purpose
Funds 205,038 238,848 - - 205,038 238,848
Joint Venture Revenue 1,197,587 1,235,649 1,197,587 1,235,649
Other Revenue from Operating Activities 66,452 78,961 - - 66,452 78,961
Sub-Total Revenue from Operating
Activities 8,686,236 8,662,019 - - 8,686,236 8,662,019
Revenue from Non-Operating Activities
Interest & Dividends 97,326 109,862 - 97,326 109,862
Sub-Total Revenue from Non-Operating
Activities 97,326 109,862 - - 97,326 109,862
Revenue from Capital Purpose Income
State Government Capital Grants
- Targeted Capital Works and Equipment 42,877 141,326 - - 42,877 141,326
Commonwealth Government Capital Grants 78,294 102,185 - - 78,294 102,185
Residential Accommodation Payments (refer
note 2b) 211,150 - - - 211,150 -
Net Gain/(Loss) on Disposal of Non-
Financial Assets (refer note 2c) (5,164) (1,600) - - (5,164) (1,600)
Donations & Bequests - 39,264 30,805 39,264 30,805
Sub-Total Revenue from Capital Purpose
Income 327,157 241,911 39,264 30,805 366,421 272,716
Share of Net Result of Associates & Joint
Ventures Accounted for using the Equity
Method (refer note 8) - - - - - -
Total Revenue (refer to note 2a) 9,110,719 9,013,792 39,264 30,805 9,149,983 9,044,597
Indirect contributions by Department of Health: Department of Health makes certain payments on behalf of the
Health Service. These amounts have been brought to account in determining the operating result for the year by
recording them as revenue and expenses.
This note relates to revenues above the net result line only, and does not reconcile to comprehensive income
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Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 2a: Analysis of Revenue by Source(based on the consolidated view of note 2)
2014 2014 2014 2014 2014
$ $ $ $ $
Revenue from Services Supported by
Health Services Agreement
Government Grants 3,443,884 2,603,927 374,092 - 6,421,903
Indirect contributions by Department of
Health 12,801 10,340 1,477 - 24,618
Patient & Resident Fees (refer note 2b) 143,190 560,888 66,560 - 770,638
Other Revenue from Operating Activities 862,339 530,896 75,842 - 1,469,077
Interest & Dividends 24,331 19,465 2,920 50,610 97,326
Capital Purpose Income (refer note 2) 23,536 299,444 4,177 327,157
Sub-Total Revenue from Services
Supported by Health Services Agreement4,510,081 4,024,960 525,068 50,610 9,110,719
Revenue from Services Supported by
Hospital and Community Initiatives*
Donations & Bequests (non capital) - - - 39,264 39,264
Sub-Total Revenue from Services
Supported by Hospital and Community
Initiatives - - - 39,264 39,264
Total Revenue 4,510,081 4,024,960 525,068 89,874 9,149,983
2013 2013 2013 2013 2013
$ $ $ $ $
Revenue from Services Supported by
Health Services Agreement
Government Grants 3,219,950 2,448,669 324,554 - 5,993,173
Indirect contributions by Department of
Health 55,335 44,693 6,385 - 106,413
Patient & Resident Fees (refer note 2b) 181,174 782,227 45,574 - 1,008,975
Other Revenue from Operating Activities 922,445 552,136 78,877 - 1,553,458
Interest & Dividends 27,466 21,972 3,296 57,128 109,862
Capital Purpose Income (refer note 2) 90,445 122,185 29,281 241,911
Sub-Total Revenue from Services
Supported by Health Services Agreement4,496,815 3,971,882 487,967 57,128 9,013,792
Revenue from Services Supported by
Hospital and Community Initiatives
Donations & Bequests (non capital) - - - 30,805 30,805
Sub-Total Revenue from Services
Supported by Hospital and Community
Initiatives - - - 30,805 30,805
Total Revenue 4,496,815 3,971,882 487,967 87,933 9,044,597
Indirect contributions by Department of Health:
Department of Health makes certain payments on behalf of the Health Service. These amounts
have been brought to account in determining the operating result for the year by recording them
as revenue and expenses.
Admitted
Patients RAC
Primary
Health Other Total
Other
Primary
Health Total
Admitted
Patients RAC
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Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 2b: Patient and Resident Fees
Total Total
2014 2013
$ $
Patient and Resident Fees Raised
Recurrent:
Acute
– Inpatients 129,631 167,952
– Outpatients 13,559 13,222
– Other 66,560 45,574
Residential Aged Care
– Generic 560,888 583,043
– Accommodation Payments - 199,184
Total Patient and Resident Fees received 770,638 1,008,975
Capital Purpose:
Residential Accommodation Payments 211,150 -
Total Capital 211,150 -
Note 2c: Net Gain/(Loss) on Disposal of Non-Financial Assets
Total Total
2014 2013
$ $
Proceeds from Disposals of Non-
Financial Assets
Plant and Equipment 2,946 -
Motor Vehicles 24,545 -
Total Proceeds from Disposal of Non-
Financial Assets 27,491 -
Less: Written Down Value of Non-
Financial Assets Sold
Plant and Equipment 3,806 1,600
Motor Vehicles 28,849 -
Total Written Down Value of Non-
Financial Assets Sold 32,655 1,600
Net gains/(losses) on Disposal of
Non-Financial Assets (5,164) (1,600)
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Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 3: Expenses
HSA HSA Total Total
2014 2013 2014 2013
$ $ $ $
Employee Expenses
Salaries & Wages 5,333,026 5,309,511 5,333,026 5,309,511
WorkCover Premium 52,855 49,808 52,855 49,808
Long Service Leave 146,960 158,077 146,960 158,077
Superannuation 494,846 467,919 494,846 467,919
Total Employee Expenses 6,027,687 5,985,315 6,027,687 5,985,315
Non Salary Labour Costs
Fees for Visiting Medical Officers 201,967 210,637 201,967 210,637
Agency Costs - Nursing - 39,040 - 39,040
Agency Costs - Other 94,507 89,530 94,507 89,530
Total Non Salary Labour Costs 296,474 339,207 296,474 339,207
Supplies & Consumables
Drug Supplies 43,981 45,126 43,981 45,126
Medical, Surgical Supplies and
Prosthesis 173,709 149,892 173,709 149,892
Pathology Supplies 5,618 4,869 5,618 4,869
Food Supplies 218,036 223,513 218,036 223,513
Total Supplies & Consumables 441,344 423,400 441,344 423,400
Other Expenses from Continuing
Operations
Domestic Services & Supplies 86,702 86,976 86,702 86,976
Fuel, Light, Power and Water 195,287 192,771 195,287 192,771
Insurance costs funded by the
Department of Health 8,748 37,426 8,748 37,426
Motor Vehicle Expenses 25,736 16,220 25,736 16,220
Repairs & Maintenance 88,719 70,986 88,719 70,986
Maintenance Contracts 58,139 63,559 58,139 63,559
Patient Transport 37,715 28,822 37,715 28,822
Bad & Doubtful Debts 15 158 15 158
Lease Expenses 143,355 172,438 143,355 172,438
Other Administrative Expenses 385,340 415,401 385,340 415,401
Joint Venture Expenses 888,618 616,451 888,618 616,451
Other 74,152 290,843 74,152 290,843
9,340 9,030 9,340 9,030
Total Other Expenses from
Continuing Operations 2,001,866 2,001,081 2,001,866 2,001,081
Depreciation (refer note 4) 859,120 939,338 859,120 939,338
Total Expenses 9,626,491 9,688,341 9,626,491 9,688,341
This note relates to expenses above the net result line only, and does not reconcile to
comprehensive expenses
Audit Fees -VAGO-Adult of
Financial Statements
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Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 3a: Analysis of Expenses by Source
Admitted
Patients RAC
Primary
Health Total
2014 2014 2014 2014
2014 $ $ $ $
Services Supported by Health Services
Agreement
Employee Expenses 2,467,940 3,038,507 521,240 6,027,687
Non Salary Labour Costs 230,075 26,434 39,965 296,474
Supplies & Consumables 229,499 185,364 26,481 441,344
Other Expenses from Continuing Operations 1,040,970 840,784 120,112 2,001,866
Sub-Total Expenses from Services Supported
by Health Services Agreement 3,968,484 4,091,089 707,798 8,767,371
Services Supported by Hospital and
Community Initiatives
Depreciation (refer note 4) 446,743 360,830 51,547 859,120
Sub-total Expenditure from Services
supported by Health Services Agreement and
by Hospital and Community Initiatives 446,743 360,830 51,547 859,120
Total Expenses 4,415,227 4,451,919 759,345 9,626,491
Admitted
Patients RAC
Primary
Health Total
2013 2013 2013 2013
2013 $ $ $ $
Services Supported by Health Services
Agreement
Employee Expenses 2,534,418 2,899,467 551,430 5,985,315
Non Salary Labour Costs 257,064 4,953 77,189 339,206
Supplies & Consumables 220,168 177,828 25,404 423,400
Other Expenses from Continuing Operations 1,040,562 840,454 120,065 2,001,081
Sub-Total Expenses from Services Supported
by Health Services Agreement 4,052,212 3,922,702 774,088 8,749,002
Services Supported by Hospital and
Community Initiatives
Depreciation (refer note 4) 488,456 394,522 56,360 939,338
Sub-total Expenditure from Services
supported by Health Services Agreement and
by Hospital and Community Initiatives 488,456 394,522 56,360 939,338
Total Expenses 4,540,668 4,317,224 830,448 9,688,340
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
46
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 4: Depreciation
Total Total
2014 2013
$ $
Depreciation
Buildings 705,819 774,511
Plant & Equipment 35,511 38,180
Medical Equipment 35,801 32,852
Computers and Communication 2,643 1,530
Furniture and Fittings 37,668 48,429
Motor Vehicles 41,678 43,095
Landscaping and Paving - 741
Total Depreciation 859,120 939,338
Note 5: Cash and Cash Equivalents
Total Total
2014 2013
$ $
Cash at Bank 400 400
Deposits at Call 2,749,908 2,703,247
TOTAL 2,750,308 2,703,647
Represented by:
Cash for Health Service Operations (as
per Cash Flow Statement) 2,750,308 2,703,647
Cash for Monies Held in Trust
- Cash at Bank -
TOTAL 2,750,308 2,703,647
For the purposes of the cash flow statement, cash assets includes
cash on hand and in banks, and short-term deposits which are
readily convertible to cash on hand, and are subject to an
insignificant risk of change in value, net of outstanding bank
overdrafts.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
47
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 6: ReceivablesTotal Total
2014 2013
$ $
CURRENT
Contractual
Trade Debtors 42,609 53,523
Patient Fees 100,168 97,958
Joint Venture Debtor 47,334 74,595
190,111 226,076
Statutory
DoH Receivables 105,137 -
GST Receivable 37,375 34,420
TOTAL CURRENT RECEIVABLES 332,623 260,496
NON CURRENT
Statutory
Long Service Leave - Department of
Health 307,432 291,562
TOTAL NON-CURRENT RECEIVABLES 307,432 291,562
TOTAL RECEIVABLES 640,055 552,058
(a) Ageing analysis of receivables
Please refer to note 14b for the ageing analysis of contractual receivables
(b) Nature and extent of risk arising from receivables
Please refer to note 14b for the nature and extent of credit risk arising from contractual
receivables
Note 7: Inventories
Total Total
2014 2013
$ $
At Cost
Pharmaceuticals 17,739 18,423
Catering Supplies 13,482 12,617
Housekeeping Supplies 2,590 2,909
Medical and Surgical Lines 23,207 19,225
Engineering Stores 6,807 8,026
Administration Stores 7,275 5,772
Joint Venture Stores 1,179 937
TOTAL INVENTORIES 72,279 67,909
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
48
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 8: Property, Plant & Equipment
Total Total
2014 2013
$ $
Land
Land at Fair Value 260,000 235,000
Total Land 260,000 235,000
Land Improvement
Land Improvements at Fair Value 353,000 -
Total Land Improvements 353,000 -
Buildings
Buildings at Fair Value 22,801,960 14,267,840
Less Acc'd Depreciation - -
Total Buildings 22,801,960 14,267,840
Plant and Equipment
Plant and Equipment at Fair Value 638,187 640,482
Less Acc'd Depreciation 476,080 455,838
Total Plant and Equipment 162,107 184,644
Medical Equipment
Medical Equipment at Fair Value 529,994 453,331
Less Acc'd Depreciation 338,103 312,630
Total Medical Equipment 191,891 140,701
Computers and Communication
Computers and Communication at Fair Value 28,203 26,811
Less Acc'd Depreciation 10,046 14,555
Total Computers and Communication 18,157 12,256
Furniture and Fittings
Furniture and Fittings at Fair Value 552,530 521,891
Less Acc'd Depreciation 416,251 382,021
Total Furniture and Fittings 136,279 139,870
Motor Vehicles
Motor Vehicles at Fair Value 292,591 292,070
Less Acc'd Depreciation 203,619 186,674
Total Motor Vehicles 88,972 105,396
TOTAL 24,012,366 15,085,707
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
49
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 8: Property, Plant & Equipment (Continued)
Buildings Plant & Total
Equipment
$ $ $ $
Balance at 1 July 2012 235,000 13,566,887 704,119 14,506,006
Additions / Transfers - 69,958 45,175 115,133
Disposals - - (1,600) (1,600)
Revaluation - 1,405,506 - 1,405,506
Depreciation (note 4) - (774,511) (164,827) (939,338)
Balance at 1 July 2013 235,000 14,267,840 582,867 15,085,707
Additions - 11,770 200,494 212,264
Additions / Transfers 330,000 (380,000) (32,654) (82,654)
Revaluation 48,000 9,608,169 - 9,656,169
Depreciation (note 4) - (705,819) (153,301) (859,120)
Balance at 30 June 2014 613,000 22,801,960 597,406 24,012,366
- -
Land and buildings carried at valuation
Reconciliations of the carrying amounts of each class of asset for the consolidated entity at the
beginning and end of the previous and current financial year is set out below.
An independent valuation of the Health Service's land and buildings was performed by the
Valuer-General Victoria to determine the fair value of the land and buildings. 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.
Land & Land
Improvements
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
50
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 8: Property, Plant & Equipment
(c) Fair value measurement hierarchy for assets as at 30 June 2014
Carrying
Amount as at
30 June 2014
Level 1* Level 2* Level 3
$ $ $ $
Land at Fair Value
Specialised land 260,000 - - 260,000
Land Improvements 353,000 - - 353,000
Total of Land at Fair Value 613,000 - - 613,000
Buildings at Fair Value
Specialised Buildings 22,799,000 - - 22,799,000
Assets Under Construction 2,960 - - 2,960
Total of Building at Fair Value 22,801,960 - - 22,801,960
Plant and Equipment at Fair Value
Plant, Equipment and Vehicles at fair value 162,107 - - 162,107
Total Plant and Equipment at Fair Value 162,107 - - 162,107
Medical Equipment at Fair Value
Medical Equipment at Fair Value 191,891 - - 191,891
Total Medical Equipment at Fair Value 191,891 - - 191,891
Computers and Communication at Fair Value
Computers and Communication at Fair Value 18,157 - - 18,157
Total Computers and Communication at Fair
Value 18,157 - - 18,157
Furniture and Fittings at Fair Value
Furniture and Fittings at Fair Value 136,279 - - 136,279
Total Furniture and Fittings at Fair Value 136,279 - - 136,279
Motor Vehicles at Fair Value
Motor Vehicles at Fair Value 88,972 - - 88,972
Total Motor Vehicles at Fair Value 88,972 - - 88,972
TOTAL 24,012,366 - - 24,012,366
(i) Classified in accordance with the fair value hierarchy, see note 1
(ii) Vehicles are categorised to level 3 assets if the depreciated replacement cost is used in estimating the fair value.
There have been no transfers between levels during the period.
Fair value measurement at end of
reporting period using:
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
51
Notes To and Forming Part of the Financial Statements Casterton Memorial Hospital Annual Report 2013/2014
Specialised land and specialised buildings
Vehicles
Plant and equipment
There were no changes in valuation techniques throughout the period to 30 June 2014.
For all assets measured at fair value, the current use is considered the highest and best use.
An independent valuation of the Health Service’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 2014.
The market approach is also used for specialised land and specialised buildings although 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 Casterton Memorial Hospital, 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.
The Casterton Memorial Hospital 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 is held at carrying value (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.
Note 8: Property, Plant & Equipment (Continued)
Land & Land
Improvements Buildings Plant & Medical Computers & Furniture & Motor Total
Equipment Equipment Communication Fittings Vehicle
$ $ $ $ $ $ $ $
Opening Balance 588,000 13,914,840 184,644 140,701 12,256 139,870 105,396 15,085,707
Purchases / (Sales) - 11,770 12,974 86,991 8,544 34,077 25,254 179,610
Transfers in (out) of Level 3 (23,000) (27,000) - - - (50,000)
Gain or losses recognised in net
result
- Depreciation - (705,819) (35,511) (35,801) (2,643) (37,668) (41,678) (859,120)
- Impairment loss - - - - - - - -
565,000 13,193,791 162,107 191,891 18,157 136,279 88,972
Items recognised in other
comprehensive income
Revaluation
Increments/(Decrements) 48,000 9,608,169 - - - - - 9,656,169
Closing Balance 613,000 22,801,960 162,107 191,891 18,157 136,279 88,972 24,012,366
(d) Reconciliation of Level 3 fair value
(i) Classified in accordance with the fair value hierarchy, see Note 1
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
52
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
(e) Description of significant unobservable inputs to Level 3 valuations:
Valuation
technique (i)
Significant
unobservable
inputs (i)
Range (weighted
average) (i)
Sensitivity of fair value
measurement to changes in
significant unobservable
inputs
Specialised land
Market approach
Community
Service
Obligation
(CSO)adjustment 20%
A significant increase or
decrease in the CSO
adjustment would result in a
significantly lower (higher) fair
value
Specialised buildings
Depreciated
replacement cost
Direct cost per
square metre
$500 - $850/m2
($848)
A significant increase or
decrease in direct cost per
square meter adjustment
would result in a significantly
higher or lower fair value
Useful life of
specialised
buildings 2 Years -40 Years
A significant increase or
decrease in the estimated
useful life of the asset would
result in a significantly higher
or lower valuation.
Plant and equipment at
fair value
Depreciated
replacement cost Cost per unit
$1,000 - $57,000
($4,900)
A significant increase or
decrease in cost per unit would
result in a significantly higher
or lower fair value
Useful life of PPE 8 Years -10 Years
A significant increase or
decrease in the estimated
useful life of the asset would
result in a significantly higher
or lower valuation.
Vehicles
Depreciated
replacement cost Cost per unit
$5000-$65000 per
unit ($28,800 per
unit)
A significant increase or
decrease in cost per unit would
result in a significantly higher
or lower fair value A significant
increase or
Useful life of
vehicles 1 Year -5 years
A significant increase or
decrease in the estimated
useful life of the asset would
result in a significantly higher
or lower valuation.
Medical equipment at
fair value
Depreciated
replacement cost Cost per unit
$1,000 - $62,000
($9,500)
Increase (decrease) in gross
replacement cost would result
in a significantly higher (lower)
fair value
Useful life of
medical
equipment 8 Years -10 Years
Increase (decrease) in useful
life would result in a
significantly higher (lower) fair
value
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
53
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 9: Investment Properties
(a) Movements in carrying value for investment properties as at 30 June 2014
Total Total
2014 2013
$ $
Balance at Beginning Period - - -
Transfers from Land & Buildings 50,000 -
Balance at End of Period 50,000 -
Level 1 (¹) Level 2 (²) Level 3 (³)
Investment Properties 50000 50,000
50000 50000
The fair value of the Health Service’s investment properties at 30 June 2014 have been arrived on the basis
of an independent valuation carried out by VRC Property Pty Ltd, Certified Practising Valuers recognised by
the Australian Property Institute and are the State Government's independent valuation agency. The
Valuation is in accordance with instructions from the Valuer-General Victoria and determined by reference
to market evidence of transaction process for similar properties with no significant unobservable
adjustments, in the same location and condition and subject to similar lease and other contracts.
(b) Fair value measurement hierarchy for investment properties as at 30 June 2014
Carry amount
as at 30 June
2014
Fair value measurement at end of reporting
period using:
There have been no transfers between levels during the period. There were no changes in valuation techniques
throughout the period to 30 June 2014
For investment properties measured at fair value, the current use of the asset is considered the highest
and best use.
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 10: Payables
Total Total
2014 2013
$ $
CURRENT
Contractual
Trade Creditors 307,893 215,011
Accrued Expenses 38,484 282,833
346,377 497,844
Statutory
GST Payable 7,339 6,845
PAYG Withholding 59,345 69,282
66,684 76,127
TOTAL CURRENT 413,061 573,971
(a) Maturity analysis of payables
Please refer to Note 14(c) for the ageing analysis of contractual payables
(b) Nature and extent of risk arising from payables
Please refer to note 14(c) for the nature and extent of risks arising from contractual payables
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
54
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 11: Provisions
Total Total
2014 2013
$ $
Current Provisions
Annual Leave (Note 11a)
- Unconditional and expected to be settled within 12 months 249,916 296,057
- Unconditional and expected to be settled after 12 months 180,528 130,898
Long Service Leave (Note 11a)
- Unconditional and expected to be settled within 12 months 69,558 109,314
- Unconditional and expected to be settled after 12 months 754,500 672,054
Accrued Days Off (Note 11a)
- Unconditional and expected to be settled within 12 months 28,995 31,738
Accrued Salaries and Wages
- Unconditional and expected to be settled within 12 months 205,720 177,119
781,368
Provisions related to Employee Benefit On-Costs
- Unconditional and expected to be settled within
12 months (nominal value)
77,550 94,314
- Unconditional and expected to be settled after
12 months (nominal value)
121,529 98,216
199,079 192,530
Total Current Provisions 1,688,296 1,609,710
Non-Current Provisions
Employee Benefits (Note 11a) 193,699 176,831
Provisions related to Employee Benefit On-Costs 17,789 16,307
Total Non-Current Provisions 211,488 193,138
Total Provisions 1,899,784 1,802,848
(a) Employee Benefits and Related On-Costs
Current Employee Benefits and related on-costs
Annual Leave Entitlements 613,160 621,534
Accrued Wages and Salaries 205,720 177,119
Accrued Days Off 28,995 31,738
Unconditional Long Service Leave Entitlements 840,421 779,319
Non-Current Employee Benefits and related on-
costs
Conditional Long Service Leave Entitlements 211,488 193,138
Total Employee Benefits and Related On-Costs 1,899,784 1,802,848
Total Total
2014 2013
(b) Movements in Long Service Leave $ $
Balance at start of year 972,457 956,076
Provision made during the year
- Revaluations 2,063 (6,511)
- Expense recognising Employee Service 146,947 132,206
Settlement made during the year (69,558) (109,314)
Balance at end of year 1,051,909 972,457
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
55
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 12: ReservesTotal Total
2014 2013
$ $
(a) Reserves
Property, Plant & Equipment Revaluation Surplus (1)
Balance at the beginning of the reporting period 10,140,701 8,735,195
Revaluation undertaken during the year 9,656,169 1,405,506
Balance at the end of the reporting period 19,796,870 10,140,701
Represented by:
- Land 409,292 361,292
- Buildings 19,387,578 9,779,409
19,796,870 10,140,701
Total Reserves 19,796,870 10,140,701
(b) Contributed Capital
Balance at the beginning of the reporting period 2,293,608 2,293,608
2,293,608 2,293,608
Balance at the beginning of the reporting period 3,598,193 4,241,937
Net Result for the Year (476,508) (643,744)
- -
3,121,685 3,598,193
(d) Total Equity at end of financial year 25,212,163 16,032,502
(1) The property, plant & equipment asset revaluation surplus arises on the revaluation of property,
plant & equipment.
Balance at the end of the reporting period
Transfers to and from Reserves
Balance at the end of the reporting period
(c) Accumulated Surpluses/(Deficits)
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Total Total
2014 2013
$ $
Net Result for the Year (476,508) (643,744)
Depreciation 859,120 939,338
Net (Gain)/Loss from Sale of Plant and Equipment 5,164 1,600
Change in Operating Assets & Liabilities
(Increase)/Decrease in Receivables (87,999) (17,753)
(Increase)/Decrease in Inventories (4,370) (199)
Increase/(Decrease) in Payables (160,909) 122,279
Increase/(Decrease) in Provisions 96,936 158,977
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 231,434 560,498
Note 13: Reconciliation of Net Result for the Year to Net
Cash Inflow/(Outflow) from Operating Activities
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
56
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments
(a) Financial Risk Management Objectives and Policies
Casterton Memorial Hospitals principal financial instruments comprise of:
- Cash Assets
- Term Deposits
- Receivables (excluding statutory receivables)
- Payables (excluding statutory payables)
- Accommodation Bonds
Categorisation of Financial Instruments
Carrying
Amount
Carrying
Amount
2014 2013
$ $
Financial Assets
Cash and cash equivalents 2,750,308 2,703,647
Receivables 190,111 226,076
Total Financial Assets (i) 2,940,419 2,929,723
Financial Liabilities
At Amortised Cost 346,377 497,844
Total Financial Liabilities (ii) 346,377 497,844
(i) The total amount of financial assets disclosed here excludes statutory receivables
(i.e. GST input tax credit recoverable)
Details of the significant accounting policies and methods adopted, including the criteria for
recognition, the basis of measurement and the basis on which income and expenses are
recognised, with respect to each class of financial asset, financial liability and equity
instrument are disclosed in note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage Casterton
Memorial Hospital's financial risks within the government policy parameters.
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes
payable)
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
57
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments (Continued)
Net holding gain/(loss) on financial instruments by category
Net holding
gain/(loss)
Net holding
gain/(loss)
2014 2013
$ $
Financial Assets
Cash & Cash Equivalent 97,326 109,862
Total Financial Assets 97,326 109,862
(b) Credit Risk
Provision of impairment for contractual financial assets is recognised when there is objective evidence
that Casterton Memorial Hospital will not be able to collect a receivable. Objective evidence includes
financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and
changes in debtor credit ratings.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets
recorded in the financial statements, net of any allowances for losses, represents Casterton Memorial
Hospital’s maximum exposure to credit risk without taking account of the value of any collateral
obtained.
(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net
gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue or
losses arising from revaluation of the financial assets, and minus any impairment recognised in the net
result;
In addition, the Casterton Memorial Hospital does not engage in hedging for its contractual financial
assets and mainly obtains contractual financial assets that are on fixed interest, except for cash
assets, which are mainly cash at bank. As with the policy for debtors, the Hospital’s policy is to only
deal with banks with high credit ratings.
Credit risk arises from the contractual financial assets of Casterton Memorial Hospital, which comprise
cash and deposits, non-statutory receivables and available for sale contractual financial assets.
Casterton Memorial Hospital's exposure to credit risk arises from the potential default of a counter
party on their contractual obligations resulting in financial loss to the Hospital. Credit risk is measured
at fair value and is monitored on a regular basis.
Credit risk associated with Casterton Memorial Hospital’s contractual financial assets is minimal
because the main debtor is the Victorian Government. For debtors other than the Government, it is the
Hospital’s policy to only deal with entities with high credit ratings of a minimum Triple-B rating and to
obtain sufficient collateral or credit enhancements, where appropriate.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
58
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments (Continued)(b) Credit Risk (Continued)
Credit quality of contractual financial assets that are neither past due nor impaired
2014 $ $ $
Financial Assets
Cash and Cash Equivalents 2,750,308 - 2,750,308
Receivables - Trade Debtors - 42,609 42,609
- Joint Venture Debtor 47,334 47,334
- Other Receivables (i) - 442,750 442,750
Total Financial Assets 2,750,308 532,693 3,283,001
2013
Financial Assets
Cash and Cash Equivalents 2,703,647 - 2,703,647
Receivables
- Trade Debtors - 53,523 53,523
- Joint Venture Debtor 74,595 74,595
- Other Receivables - 97,958 97,958
Total Financial Assets 2,703,647 226,076 2,929,723
Ageing analysis of Financial Asset as at 30 June
Less than 1
Month
1-3 Months 3 months - 1
Year
2014 $ $ $ $ $
Financial Assets
Cash and Cash Equivalents 2,750,308 2,750,308 - - -
Receivables (i)
- Trade Debtors 42,609 19,103 34,420
- Joint Venture Debtors 47,334 - - - 47,334
- Other Receivables 442,750 73,588 20,443 6,138 105,136
Total Financial Assets 3,283,001 2,842,999 20,443 6,138 186,890
2013
Financial Assets
Cash and Cash Equivalents 2,703,647 2,703,647 - - -
Receivables (i)
- Trade Debtors 53,523 19,103 34,420
- Joint Venture Debtors 74,595 - 74,595
- Other Receivables 97,958 77,723 16,614 3,566 55
Total Financial Assets 2,929,723 2,800,473 16,614 3,566 109,070
There are no material financial assets which are individually determined to be impaired. Currently
Casterton Memorial Hospital does not hold any collateral as security nor credit enhancements relating
to any of its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being
past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis
table above discloses the ageing only of contractual financial assets that are past due but not impaired.
(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian
Government and GST input tax credit recoverable).
Financial
institutions
(AAA credit
rating)
Other Total
Total
Carrying
Amount
Not Past Due
and Not
Impaired
Past Due But Not Impaired
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
59
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments (Continued)
(c) Liquidity Risk
Carrying
Amount
Contractual
Cash Flows
Less than 1
Month
1-3
Months
3 months -
1 Year
1-5 Years
2014 $ $ $ $ $ $
Financial Liabilities
Payables 346,377 346,377 346,377 - - -
Other Financial Liabilities (i)
Total Financial Liabilities 346,377 346,377 346,377 - - -
2013
Financial Liabilities
Payables 497,844 497,844 497,844 - - -
Other Financial Liabilities (i)
Total Financial Liabilities 497,844 497,844 497,844 - - -
(d) Market Risk
Currency Risk
The Casterton Memorial Hospital's exposures to market risk are primarily through interest rate risk
with only insignificant exposure to foreign currency and other price risks. Objectives, policies and
processes used to manage each of these risks are disclosed in the paragraph below.
The Casterton Memorial Hospital is exposed to insignificant foreign currency risk through its
payables relating to purchases of supplies and consumables from overseas. This is because of a
limited amount of purchases denominated in foreign currencies and a short timeframe between
commitment and settlement.
Liquidity risk is the risk that the Hospital would be unable to meet its financial obligations as and
when they fall due.
Casterton Memorial Hospital's maximum exposure to liquidity risk is the carrying amounts of
financial liabilities as disclosed in the face of the balance sheet. The Hospital manages its liquidity
risk as follows:
(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST
payable)
Maturity Dates
The following table discloses the contractual maturity analysis for Casterton Memorial Hospital's
financial liabilities. For interest rates applicable to each class of liability refer to individual notes to
the financial statements.
Maturity analysis of Financial Liabilities as at 30 June
Trade creditors are paid in accordance with their trading terms. Accommodation bonds are
refunded when the resident departs the aged care facility. Sufficient cash reserves are held to
ensure these commitments are met when due
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
60
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments (Continued)
Interest Rate Risk
Other Price Risk
Interest Rate Exposure of Financial Assets and Liabilities as at 30 June
Weighted Carrying
Average Amount Fixed Variable Non-
Effective Interest Interest Interest
Interest Rate Rate Bearing
2014 Rate (%) $ $ $ $
Financial Assets
Cash and Cash Equivalents 3.20 2,750,308 - 2,750,308 -
Receivables
- Trade Debtors 0 42,609 - - 42,609
- Joint Venture Debtors 0 47,334 - - 47,334
- Other Receivables 0 442,750 - - 442,750
3,283,001 - 2,750,308 532,693
Financial Liabilities
Payables 0 346,377 - - 346,377
Other Financial Liabilities
346,377 - - 346,377
2013
Financial Assets
Cash and Cash Equivalents 4.30 2,703,647 - 2,703,647 -
Receivables
- Trade Debtors 0 53,523 - - 53,523
- Joint Venture Debtors - 74,595 - - 74,595
- Other Receivables 0 97,958 - - 97,958
2,929,723 - 2,703,647 226,076
Financial Liabilities
Payables 0 497,844 - - 497,844
Other Financial Liabilities
497,844 - - 497,844
Interest Rate Exposure
Exposure to interest rate risk is insignificant. Minimisation of risk is achieved by mainly
undertaking fixed rate or non-interest bearing financial instruments. For financial assets,
Casterton Memorial Hospital holds financial assets with relatively even maturity profiles. The
Hospital mainly undertakes financial liabilities with relatively even maturity profiles.
The Hospital is exposed to normal price fluctuations from time to time through market forces.
Where adequate notice is provided by suppliers, additional purchases are made for long term
goods. Supplier contracts are also in place for major product lines purchased by the Hospital
on a monthly basis. These contracts have set price arrangements and are reviewed on a
regular basis.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
61
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments (Continued)
(d) Market Risk (continued)
Sensitivity Disclosure Analysis
- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 6%;
- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2%
Carrying
Amount
Profit Equity Profit Equity
2014 $ $ $ $ $
Financial Assets
Cash and Cash Equivalents 2,750,308 (27,503) (27,503) 27,503 27,503
Receivables
- Trade Debtors 42,609 - - - -
- Joint Venture Debtors 47,334 - - - -
- Other Receivables 442,750 - - - -
Financial Liabilities
Payables 346,377 - - - -
Other Financial Liabilities
(27,503) (27,503) 27,503 27,503
2013
Financial Assets
Cash and Cash Equivalents 2,703,647 (27,036) (27,036) 27,036 27,036
Receivables
- Trade Debtors 53,523 - - - -
- Joint Venture Debtors
- Other Receivables 97,958 - - - -
Financial Liabilities
Payables 497,844 - - - -
Other Financial Liabilities
(27,036) (27,036) 27,036 27,036
Taking into account past performance, future expectations, economic forecasts, and
management's knowledge and experience of the financial markets, Casterton Memorial Hospital
believes the following movements are 'reasonably possible' over the next 12 months (Base rates
are sourced from the Reserve Bank of Australia)
The following table discloses the impact on net operating result and equity for each category of
financial instrument held by Casterton Memorial Hospital at year end as presented to key
management personnel, if changes in the relevant risk occur.
Interest Rate Risk
-1% +1%
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
62
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 14: Financial Instruments (Continued)
(e) Fair Value
Total
Carrying
Amount
Fair value Total
Carrying
Amount
Fair value
2014 2014 2013 2013
$ $ $ $
Financial Assets
Cash and Cash Equivalents 2,750,308 2,750,308 2,703,647 2,703,647
Receivables
- Trade Debtors 42,609 42,609 53,523 53,523
- Joint Venture Debtors 47,334 47,334 - -
- Other Receivables 442,750 442,750 97,958 97,958
Total Financial Assets 3,283,001 3,283,001 2,855,128 2,855,128
Financial Liabilities
Payables 346,377 346,377 497,844 497,844
Other Financial Liabilities
Total Financial Liabilities 346,377 346,377 497,844 497,844
The fair values and net fair values of financial instrument assets and liabilities are determined
as follows:
• Level 1 - the fair value of financial instrument with standard terms and conditions and
traded in active liquid markets are determined with reference to quoted market prices;
• Level 2 - the fair value is determined using inputs other than quoted prices that are
observable for the financial asset or liability, either directly or indirectly; and
• Level 3 - the fair value is determined in accordance with generally accepted pricing models
based on discounted cash flow analysis using unobservable market inputs.
Casterton Memorial Hospital considers that the carrying amount of financial instrument assets
and liabilities recorded in the financial statements to be a fair approximation of their fair
values, because of the short-term nature of the financial instruments and the expectation
that they will be paid in full.
The following table shows that the fair values of most of the contractual financial assets and
liabilities are the same as the carrying amounts.
Comparison between carrying amount and fair value
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
63
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 15: Commitments for Expenditure
Total Total
2014 2013
$ $
Lease commitments
Commitments in relation to leases contracted for at
the reporting date:
Operating Leases 37,784 27,563
Total lease commitments 37,784 27,563
Operating Leases
Non-cancellable
Not later than one year 18,227 11,809
Later than 1 year and not later than 5 years 19,557 15,754
Sub Total 37,784 27,563
TOTAL 37,784 27,563
Total Commitments for Expenditure (inclusive of
GST) 37,784 27,563
less GST recoverable from the Australian Tax Office (3,435) (2,506)
Total Commitments for Expenditure (exclusive of
GST) 34,349 25,057
Note 16: Contingent Assets and Contingent Liabilities
There are no known contingent assets or liabilities (2013 nil).
Note 17: Remuneration of Auditors
2014 2013
Victorian Auditor-General's Office 9,000 8,700
Coffey Hunt Chartered Accountants
- Annual Prudential Compliance Statement (APCS) 340 330
9,340 9,030
Note 18: Ex Gratia Payments
Casterton Memorial Hospital have made no ex gratia payments during the 2013/14 year.
(2013 nil)
The amount paid or due and payable to the Auditor - General for auditing the financial
statements of Casterton Memorial Hospital pursuant to the Audit Act 1994
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
64
Note
s T
o a
nd F
orm
ing P
art
of
the F
inancia
l Sta
tem
ents
Caste
rton M
em
orial Hospital Annual Report
2013/2
014
Note
19
: O
pera
tin
g S
egm
en
ts
20
14
20
13
20
14
20
13
20
14
20
13
20
14
20
13
$$
$$
$$
$$
Exte
rnal Segm
ent
Revenue
4
,525,0
14
4
,500,1
54
4
,005,4
95
3
,949,9
10
522,1
48
484,6
71
9,0
52,6
57
8,9
34,7
35
Tota
l R
evenue
4
,52
5,0
14
4,5
00
,15
4
4
,00
5,4
95
3,9
49
,91
0
52
2,1
48
4
84
,67
1
9,0
52
,65
7
8,9
34
,73
5
EX
PEN
SES
Exte
rnal Segm
ent
Expenses
(4
,415,2
27)
(4
,540,6
68)
(4
,451,9
19)
(4
,317,2
24)
(759,3
45)
(830,4
48)
(9,6
26,4
91)
(9
,688,3
40)
Tota
l Expenses
(4
,41
5,2
27
)
(4
,54
0,6
68
)
(4
,45
1,9
19
)
(4
,31
7,2
24
)
(7
59
,34
5)
(
83
0,4
48
)(9
,62
6,4
91
)
(9
,68
8,3
40
)
Net
Result
from
ordin
ary a
cti
vit
ies
10
9,7
87
(
40
,51
4)
(
44
6,4
24
)
(3
67
,31
4)
(
23
7,1
97
)
(3
45
,77
7)
(5
73
,83
4)
(7
53
,60
5)
Inte
rest
Incom
e
74,9
41
84,5
94
19,4
65
21,9
72
2,9
20
3,2
96
97,3
26
109,8
62
Share
of N
et
Result o
f Associa
tes &
Join
t Ventu
res u
sin
g E
quity M
eth
od
-
-
-
-
-
-
-
-
Net
Result
for Y
ear
18
4,7
28
44
,08
0
(4
26
,95
9)
(
34
5,3
42
)
(2
34
,27
7)
(
34
2,4
81
)(4
76
,50
8)
(6
43
,74
3)
OTH
ER
IN
FO
RM
ATIO
N
Segm
ent
Assets
14,3
13,0
04
9
,572,8
47
11,5
60,5
03
7
,731,9
15
1
,651,5
00
1
,104,5
59
27,5
25,0
07
18,4
09,3
21
Tota
l A
ssets
14
,31
3,0
04
9,5
72
,84
7
11
,56
0,5
03
7,7
31
,91
5
1
,65
1,5
00
1,1
04
,55
9
27
,52
5,0
07
18
,40
9,3
21
Segm
ent
Lia
bilitie
s
1,2
02,6
79
1
,235,9
46
971,3
95
998,2
64
138,7
71
142,6
09
2,3
12,8
45
2,3
76,8
19
Tota
l Lia
bilit
ies
1
,20
2,6
79
1,2
35
,94
6
97
1,3
95
9
98
,26
4
13
8,7
71
1
42
,60
9
2,3
12
,84
5
2,3
76
,81
9
Investm
ents
in A
ssocia
tes a
nd J
oin
t
Ventu
re P
art
ners
hip
27,3
06
55,7
69
22,0
55
-
3,1
51
- 52,5
12
55,7
69
Acquis
itio
n o
f Pro
pert
y, Pla
nt
and
Equip
ment
and I
nta
ngib
le A
ssets
129,9
33
115,1
33
71,9
32
-
9,9
30
- 211,7
95
115,1
33
Depre
cia
tion &
Am
ort
isation E
xpense
446,7
43
488,4
56
360,8
30
394,5
22
51,5
47
56,3
60
859,1
20
939,3
38
The m
ajo
r pro
ducts
/serv
ices fro
m w
hic
h t
he a
bove s
egm
ents
derive r
evenue a
re:
Bu
sin
ess S
eg
me
nts
Se
rvic
es
Hospital
Acute
bed b
ased s
erv
ices
Resid
ential Aged C
are
Serv
ices (
RACS)
Pro
vider
of re
sid
ential aged c
are
beds
Prim
ary
Care
Serv
ices
Prim
ary
Care
and C
om
munity b
ased s
erv
ices
Ge
og
rap
hic
al S
eg
me
nt
Caste
rton M
em
orial H
ospital opera
tes p
redom
inantly in t
he W
este
rn D
istr
ict
of V
icto
ria.
More
than 9
0%
of re
venue,
net
surp
lus fro
m o
rdin
ary
activi
ties a
nd
segm
ent
assets
rela
te t
o o
pera
tions in t
he W
este
rn D
istr
ict
of V
icto
ria
To
tal
Ho
sp
ita
lR
AC
SP
rim
ary
Ca
re
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
65
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 20: Jointly Controlled Operations and Assets
Name of Entity Principal Activity 2014 2013
% %
South West Alliance of Rural Health Information Systems 3.64 3.64
Southern Grampians Glenelg Shire Primary
Care Partnership 13 13
Casterton Memorial Hospital's interest in assets employed in the above jointly controlled
operations and assets is detailed below. The amounts are included in the financial statements
under their respective asset categories:
2014 2013
$ $
Current Assets
Cash and Cash Equivalents 156,054 135,513
Other Current Assets 48,513 85,610
Total Current Assets 204,567 221,123
Non Current Assets
Property, Plant and Equipment 10,626 12,218
Total Non Current Assets 10,626 12,218
Total Assets 215,193 233,341
Current Liabilities
Payables 86,828 90,911
Employee Benefits 60,039 72,897
Total Current Liabilities 146,867 163,808
Non Current Liabilities
Employee Benefits 15,814 13,764
Total Non Current Liabilities 15,814 13,764
Total Liabilities 162,681 177,572
Casterton Memorial Hospital's interest in revenues and expenses resulting from jointly
controlled operations and assets is detailed below:
2014 2013
$ $
Revenues
Other 1,241,640 1,294,150
Total Revenue 1,241,640 1,294,150
Expenses
Information Technology and Administrative Expenses 1,135,482 1,186,757
Primary Care Partnership Program Expenses 108,902 108,272
Total Expenses 1,244,384 1,295,029
Net result (2,744) (879)
Ownership Interest
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
66
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 21a: Responsible Persons Disclosures
Governing Boards
Mr T Baker
Dr T Halloran
Mr P Green
Mr G Sheppard
Mr G Cain
Mr R Dalby
Fr A Hayes
Mrs Karen Black
Mr Gerald Smith
Accountable Officers
Mr O Stephens
Remuneration of Responsible Persons
The number of Responsible Persons are shown in their relevant income bands;
2014 2013
Income Band No. No.
$0 - $9,999 9 9
$180,000 - $189,999 - 1
$190,000 - $200,000 1 -
Total Numbers 10 10
$191,292 $187,106
Executive Officers' Remuneration
2014 2013 2014 2013
No. No. No. No.
$120,000 - $129,000 1 1 1 1
Total annualised employee equivalents (AEE) (i) 1 1 1 1
Total Remuneration 127,109 127,593 127,109 127,593
Note 22 Events Occurring after the Balance Sheet Date
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial
Management Act 1994 , the following disclosures are made regarding responsible persons for the
reporting period.
Note 21b: Executive Officer Disclosures
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
Total remuneration received or due and receivable by Responsible
Persons from the reporting entity amounted to:
Amounts relating to Responsible Ministers are reported in the financial
statements of the Department of Premier and Cabinet
Remuneration
Responsible Ministers:
Period
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
Casterton Memorial Hospital has made no payments to other personnel or contractors with
significant management responsibilities during the 2013/14 year. (2013 nil).
The Honourable David Davis, MLC, Minister for Health and Ageing
01/07/2013 - 30/06/2014
There have been no events subsequent to the reporting date which require further disclosure.
(2013 nil)
Total Remuneration Base Remuneration
01/07/2013 - 30/06/2014
01/07/2013 - 30/06/2014
(i) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week
over 52 weeks for a reporting period
The numbers of executive officers, other than Ministers and Accountable Officers, and their total
remuneration during the reporting period are shown in the first two columns in the table below their
relevant income bands. The base remuneration of executive officers is shown in the third and fourth
columns. Base remuneration is exclusive of bonus payments, long service leave payments,
redundancy payments and retirement benefits.
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
67
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2013/2014
Note 23: Superannuation
Paid
contribution
for the Year
Paid
contribution
for the Year
Contribution
outstanding
at Year End
Contribution
outstanding
at Year End
2014 2013 2014 2013
$ $ $ $
(i) Defined benefit plans:
First State Super (Health Super) 30,531 33,820 - -
Defined Contribution plans:
First State Super (Health Super) 424,926 399,280 - -
HESTA 39,389 34,819 - -
Total 494,846 467,919 - -
(i) The basis for determining the level of contributions is determined by the various actuaries of the defined benefit
superannuation plans.
Employees of the Health Service are entitled to receive superannuation benefits and the Health
Service contributes to both defined benefit and defined contribution plans. The defined benefit plan(s)
provides benefits based on years of service and final average salary.
The Health Service does not recognise any defined benefit liability in respect of the plan(s) because
the entity has no legal or constructive obligation to pay future benefits relating to its employees: its
only obligation is to pay superannuation contributions as they fall due. The Department of Treasury
and Finance discloses the State's defined benefits liabilities in its disclosure for administered items.
However superannuation contributions paid or payable for the reporting period are included as part of
the employees benefits in the comprehensive operating statement of the Health Service. The name,
details, and amounts expense in relation to the major employee superannuation funds and
contributions made by the Health Services are as follows:
Casterton Memorial Hospital 106th Annual Report 2013 – 2014
68
The Annual Report of the Casterton Memorial Hospital 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.
Disclosure Index Legislation Requirement Page Reference
Ministerial Directions-
Report of Operations
Charter and Purpose
FRD 22C Manner of establishment and the relevant Ministers 1, 2 & 3
FRD 22C Objectives, functions, powers and duties Inside Front Cover
FRD 22C Nature and range of services provided 3 & 11
Management and structure
FRD 22C Organisational structure Inside Back Cover
Financial and other information-
FRD 10 Disclosure Index 68
FRD 11 Disclosure of Ex Gratia Payments 63
FRD 15B Executive Officers Disclosure 66
FRD 21B Responsible person and executive officer disclosures 66
FRD 22E Application and operation of Freedom of Information Act 1982 13
FRD 22E Compliance with building and maintenance provisions of Building Act 1993 13
FRD 22E Major changes or factors affecting performance 14 & 15
FRD 22E Occupational health and safety 12
FRD 22E Operational and budgetary objectives and performance against objectives 14 & 15
FRD 22E Significant changes in financial position during the year 14 & 15
FRD 22E Statement of availability of other information 12
FRD 22E Statement on National Competition Policy 13
FRD 22E Subsequent events 66
FRD 22E Summary of the financial results for the year 14 & 15
FRD 22EWorkforce Data Disclosures including a statement on the application of employment
and conduct principles12
FRD 25B Victorian Industry Participation Policy disclosures 13
SD 4.2 (j) Sign Off requirements 10
SD 3.4.13 Attestation on Data Integrity 5
SD 4.5.5.1 Attestation of Insurance 11
SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard 13
Financial Statements
Financial statements required under Part 7 of the FMA
SD 4.2(b) Comprehensive Operating Statement 19
SD 4.2(b) Balance Sheet 20
SD 4.2(a) Statement of Changes in Equity 21
SD 4.2(b) Cash Flow Statement 22
Other requirements under Standing Directions 4.2
SD 4.2(a) Compliance with Australian accounting standards and other authoritative
pronouncements14 & 24
SD 4.2(c) Accountable Officer’s declaration 16
SD 4.2(c) Compliance with Ministerial Directions 24
SD 4.2(d) Rounding of amounts 27
Legislation
Freedom of Information Act 1982 Page 13
Victorian Industry Participation Policy Act 2003 Page 13
Building Act 1993 Page 13
Financial Management Act 1994 Page 14
Protective Disclosure Act 2012 Page 13
Carers Recognition Act 2012 Page 13
Casterton Memorial Hospital
63 - 69 Russell Street, Casterton, Victoria 3311
Phone: (03) 555 42 555 Fax: (3) 55 811 051 Email: [email protected]
www.castertonmemorialhospital.com.au