annual report 2018/19 - cobram district health · the dental clinic provides a valuable public and...

Cobram DistrictHealth

ANNUAL REPORT2018/19

VisionTo improve the health of our community through the provision of high quality, integrated health services that meet the needs of the individual and community.

ValuesIntegrityWe are fair, consistent, and honest in all our actions. We do the right thing.

RespectWe listen to others and accept differences. We value diverse opinions.

CollaborationWe commit to a common purpose and encourage participation and sharing of ideas.

ExcellenceWe have a customer focus and always strive to improve. We set a high standard.

C o b r a m D i s t r i C t H e a l t H - a n n u a l r e p o r t 2 018/192

ContentsIntroduction 3

About Cobram District Health 4

CEO and Chair Message 6

Director Medical Services Message 8

Board of Management 10

Leadership Team 11

Board and Committees 12

Highlights 13

Workforce Data 16

Organisation Chart 17

Statutory Requirements 18

Occupational Health and Safety 18

Occupational Violence 18

Compliance with the Building Act 19Occupancy Permits and Certificates of Final Inspection 19

Building Works 19

Essential Safety Measures 19

Freedom of Information 19

Safe Patient Care Act 19

Carers Recognition Act 19

Protected Disclosure Act 20

Competitive Neutrality 20

Local Jobs First Policy 20

Environmental Performance 20

Consultancies 20Details of Information and Communication Technology (ICT) expenditure 21

Additional Information 21

Part A. Statement of Priorities – Outcomes 22

Part B. Performance Priorities 2018/19 30

Part C. Activity and Funding 2018/19 32

Attestations 33

Five Year Financial Summary 34

Disclosure Index 35

Financial Report 37

INTRODUCTIONIn accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Cobram District Health for the year ended 30 June 2019.

Mr Dale Brooks, Board Chair 27 August 2019

ANNUAL REPORTINGCobram District Health reports on its annual performance in two separate documents each year – the Annual Report and Quality Account.

This annual report fulfils the statutory reporting requirements for governance. The quality account reports on quality, safety, risk management and performance improvement matters.

Cobram District Health (CDH) is incorporated as a public hospital under the Heath Services Act 1988 and came into operation on 25 January 1949. The name was subsequently changed to Cobram District Health on 1 January 2009.

Cobram District Heath is established under the Health Services Act 1988. The purpose, functions, powers and duties of Cobram District Health are described in the 2015-2018 Strategic Plan and in the By-Laws of the organisation.

RELEVANT MINISTERThe responsible Ministers during the reporting period were:

The Honourable Jill Hennessy, Minister for Health and Minister for Ambulance Services 01/07/2018 - 29/11/2018

Jenny Mikakos, Minister for Health and Minister for Ambulance Services 29/11/2018 - 30/06/2019

Martin Foley, Minister for Mental Health 01/07/2018 - 30/06/2019

The Hon Luke Donnellan MP, Minister for Disability, Ageing and Carers 29/11/2018 - 30/06/19

Nathalia District Hospital Financial Statements Financial Year Ended 30 June 2019

Board Member's, Accountable Officer's and Chief Finance & Accounting Officer's Declaration

The attached financial statements for Nathalia District Hospital have been prepared in accordance with Direction 5.2 of the Standing Directions of the Assistant Treasurer under the Financial Management Act 1994, applicable Financial Reporting Directions (FRDs), Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2019 and the financial position of Nathalia District Hospital at 30 June 2019.

At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

We authorise the attached financial statements for issue on the 27 August 2019.

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Dale Brooks Peter Hutchinson Board Chair Chief Executive Officer Chief Finance Officer

NCN Health NCN Health GV Health / Nathalia 27 August 2019 27 August 2019 27 August 2019

3C o b r a m D i s t r i C t H e a l t H - a n n u a l r e p o r t 2 018/19

About Cobram District Health

Cobram District Health provides services to the people of Cobram and surrounding areas of Barooga, Strathmerton and Katamatite along with several southern New South Wales towns, which have a combined catchment of around 12,000 people.

SERVICES PROVIDED

Cobram District Health provides the following services to our community:

• 12 Acute beds;

• 2 Transitional Care beds;

• 30 High Care Residential Aged Care beds;

• Urgent Care Centre;

• Operating Theatre, performing minor elective procedures;

• Palliative Care;

• Onsite x-ray and ultrasound services;

• District Nursing Service;

• Meals on Wheels provided by our catering department in partnership with Moira Health Care;

• Medical Clinic with General Practitioners, practice nurses, midwifery service and visiting specialists; and

• Dental Clinic with senior dentists, a graduate dentist and University of Melbourne dental students providing public and private dentistry.

Cobram District Community Health Centre provides the following services:

• Community Nursing

• Physiotherapy

• Diabetes Education

• Occupational Therapy

• Health Promotion

• Dietitian Services

• Speech Therapy

• Chronic Disease Management

• Visiting Services

• Home Care Packages

Moira Community Rehabilitation Centre is based in Cobram with services provided to Nathalia, Numurkah and Yarrawonga.

TOTAL NUMBER OF BEDS

Facility 2015/16 2016/17 2017/18 2018/19

Cobram District Health

44 44 44 44


CEO and Chair Message

This year has been a busy year for Cobram District Health as we continued to deliver high quality services and work in close partnership with a range of

organisations to meet the needs of our local community.

ENHANCING OUR SERVICES During the year, Cobram District Health established a clinical governance system focusing on quality, safety and continuous improvement.

We maintained accreditation for the health service and successfully achieved accreditation for the Commonwealth Home Support Program. We also had a support visit from the aged care quality agency and maintained our aged care accreditation, passing successfully.

Cobram District Health continued to have a busy year in the Urgent Care Centre with 4,762 attendances in 2018/19. Telehealth was introduced in Urgent Care this year, providing enhanced access to services. The Medical Clinic also continues to be busy and provides a great service to patients. We appreciate the support of the doctors and nurses who provide excellent care to our growing community.

The Dental Clinic provides a valuable public and private dental service. We continued a very successful partnership with Goulburn Valley (GV) Health Dental Service and students who gained valuable experience working at Cobram. We also continued the new graduate dental program. Both services are well supported by our senior dentists.

Our active Consumer Advisory Committee focused on diversity, disability, quality and safety across the organisation during the year and undertook an accessibility audit to improve access in and around Cobram District Health.

FUNDING AND CAPITAL UPGRADESPlanning and detailed design for the upgrade of Irvin House took place in 2018/19. The upgrade works include an extension to the existing facility and the creation of seven new single rooms with ensuites. The project also includes building an internal courtyard with garden and creating a dementia-friendly environment. The project is funded by a $1.6 million grant through the Victorian Government’s Rural Health Infrastructure Fund. Additional funding of $290k was secured to upgrade six double rooms to single rooms.

A brand new, state of the art kitchen will be built at Cobram District Health, through a Rural Health Infrastructure Fund grant.

A mechanical and electrical upgrade took place at Cobram in 2018/19, including the replacement of the boiler system, installation of new air conditioning into Irvin House, and updated air conditioning and heating throughout the hospital. The main switchboard was upgraded to replace the old system and planning for the upgrade of the wireless Information Technology system took place which will enable wifi access across the whole facility.

PARTNERSHIPSIn 2018/19, Cobram District Health worked together with Numurkah District Health Service and Nathalia District Hospital under a shared services model across the three organisations.

Community engagement took place on the proposal to join the three health services as ‘NCN Health’ in 2018/19 including: 165 attendees at ‘World Café Style’ engagement sessions; 72 survey responses; meetings and written submissions. Communication also included newsletters, letters, advertising, publicity, websites and facebook. We thank the community for their valuable input into the proposal. An independent Due Diligence Report found no major issues of concern on the proposal to join services, which will improve access to care for local communities. The proposal was endorsed by the three Boards in April and approved by the Minister for Health in June 2019.

Mental health services were increased through the ongoing partnership between Cobram District Health, Numurkah District Health Service, Nathalia District Hospital and Yarrawonga Health. New Psychological Therapy Services and Mental Health Clinical Care Coordination for residents of Moira Shire have been funded by Murray Primary Health Network.

Cobram District Heath continued to participate in the Respiratory Project – a grant funded partnership project that


aims to improve lung health and reduce avoidable hospital admissions due to lung disease. It focuses on providing pulmonary rehabilitation in four health services: Cobram, Yarrawonga, Nathalia and Numurkah.

We continued to strengthen partnerships, building on the previous year and appreciate the funding contributions to continue providing health care in local communities.

Stand By Me: Cobram District Health formed a partnership with Cobram Secondary School for a youth mental health project ‘Stand By Me’. We co-hosted a session with the school and supported young people with community-based information.

Cob-Cab: Cobram District Health has been working in partnership with the Cobram Community Centre and received funding from Bendigo Bank through the community enterprise funding and donations from the Lions Club - towards the purchase of a bus for a project called ‘Cob-Cab’. The project will provide transport for residents of Irvin House and local community groups to attend community events and other outings. The project is an exciting initiative to improve social connectedness in our local community.

OUR WORKFORCEWe would like to acknowledge our valued staff for their hard work and dedication to providing safe and quality health care for the community.

A total of 18 employees were recognised for their years of service, reaching 10, 15, 20 and 35 year milestones in 2018/19.

We continued to strengthen our workforce and leadership capabilities through the ‘Caring Together’ program in partnership with the Studer Group.

Workforce development also continued with a number of training programs. This year we particularly focused on Family Violence training, improving awareness of Occupational Violence and Aggression prevention and ongoing opportunities for clinical staff to maintain high standards of skill and knowledge.

We welcomed Dr Ka Chun Tse as the Director of Medical Services and we thank Dr Patrick Giddings for his work in this role over the last few years.

FINANCIAL SUSTAINABILITYCobram District Health continued to work towards a sustainable financial position during the year.

ACKNOWLEDGING OUR SUPPORTERSWe would like to thank volunteers for their valuable contribution to the health service, residents, patients and the community throughout the year.

We thank the Auxiliaries for their generous donations supporting the bed replacement program. We also purchased medical equipment and theatre equipment with the funding. We thank you for providing ongoing support to the health service through time and generosity.

ACKNOWLEDGING OUR BOARD We wish to thank Board Directors for working together cohesively throughout the year to drive positive outcomes for the community.

This is the final annual report of Cobram District Health. I thank the Board Chair and Directors and look forward to continuing our strong partnership with the community to meet local health needs.

Jacque Phillips OAM Dale Brooks Chief Executive Officer Board Chair







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Director Medical Services Message

In the past financial year, Cobram District Health has witnessed challenges to the traditional model of

local General Practitioners providing cover 24 hours a day, seven days a week (24/7) to our Urgent Care Centre, Acute Ward and residential aged care. While 24/7 local General Practitioner cover has been maintained for the Acute Ward and

residential aged care, from 1 July 2019 the health service is moving to a model for the Urgent Care Centre where medical cover is provided through a combination of local doctors and a telehealth service of emergency medicine specialist physicians called My Emergency Dr. We are grateful to Murray Primary Health Network for offering funding to help support My Emergency Dr use in the 2019/20 financial year.

During this period, we have welcomed Dr Souravi Saha to a General Practice Registrar training position in Cobram. We have farewelled Doctors Derrick Pang and Yue Chen from the Visiting Medical Officers group, with Derrick remaining in Cobram and Yue moving to Melbourne. We look forward to continuing to work with Derrick as a local General Practitioner, and wish Yue the very best for the future.

Together with Yarrawonga Health, Nathalia District Hospital and Numurkah District Health Service, we have also commenced two-monthly meetings of the Moira Education and Research Committee. To date, this Committee has seen the development of a Moira-wide research project to understand the factors affecting adherence to national evidence-based practice guidelines for antibiotic use in the four health services, and is sharing clinical education and research tools.

Preparation for the voluntary amalgamation of Nathalia District Hospital, Cobram District Health and Numurkah District Health Service into NCN Health has provided multiple opportunities for collaboration among the three health services.

A regional Urgent Care Centre enhancement project continued across the three hospitals plus Kyabram District Health Service. Joint clinical review meetings have continued and with the requirement to provide additional support to local doctors who cover Urgent Care Centres, telehealth options (to Goulburn Valley Health and a private emergency medicine specialist telehealth provider My Emergency Dr) have been implemented at Numurkah, and are planned for Cobram and Nathalia.

The appointment of a single Director of Medical Services across the three health services has started the process of aligning medical workforce management and clinical governance processes. Examples include movements towards a standard medical and dental credentialling process (supported by electronic credentialling) and internal clinical review mechanisms.

Nathalia, Numurkah and Cobram are leading the development of a discussion paper for the Goulburn Regional Health Partnership, on challenges facing Urgent Care Centres in our region (and indeed the whole State), and potential solutions to pursue in collaboration with the Department of Health and Human Services, Safer Care Victoria, Ambulance Victoria, the National Rural Health Commissioner and other key agencies. We have also taken a proactive role in the Goulburn Regional Health Partnership, with a telehealth trial from Goulburn Valley Health Emergency Department, planning for a Consumers and Clinicians Forum, and participation in its Quality and Safety and Access and Flow Subcommittees.

The three health services have also commenced participation in a Hume Region Rural Generalist Training Capacity Project, which will be completed in conjunction with the Grampians Region. This project will determine opportunities to improve rural General Practice training in the Hume and Grampians regions.

Dr Ka Chun (KC) Tse Director Medical Services


Board of ManagementCobram District Health Board of Management members are appointed for a three-year term by the Governor-in-council, upon recommendation of the Minister for Health. There are six Board of Management positions filled in the 2018-19 financial year

Chair – Dale BrooksBoard Member since 2012

Term Expired: 30 June 2019

Committees: Finance, Audit and Risk & Consumer Advisory.

Vice President – Paul UkichBoard Member since 2007


Committees: Finance, Audit and Risk

Board Member – Alex MonkBoard Member since 2013

Term Expires: 30 June 2019

Committees: Clinical Governance

Board Member – Pat WestBoard Member since 2015



Board Member – Kade BeasleyBoard Member Since 2017


Committees: Finance, Audit and Risk

Board Member – Sarah DaviesBoard Member Since 2017

Term Expires: 30 June 2019



Leadership TeamCHIEF EXECUTIVE OFFICER

Jacque Phillips OAMThe Chief Executive Officer has an extensive background in health and government services with over 20 years in the Goulburn Valley. She has an Executive Masters in Public Administration from Monash University, as well as qualifications in Business/Human Resources and Nursing.

DIRECTOR OF MEDICAL SERVICES

Dr Ka Chun TseThe Director of Medical Services joined the team at Cobram District Health in 2018 as Director of Medical Services. He is a Medical Administrator with extensive experience in clinical leadership, governance and administration.

DIRECTOR CLINICAL SERVICES

Carolyn HargreavesThe Director of Clinical Services has been a leader in health care most of her professional career. She has qualifications in Nursing, Critical Care and Leadership.


ADVISORY AND SUBCOMMITTEES

There are a number of Advisory and Subcommittees reporting to the Board:

• Finance, Audit and Risk Committee

• Clinical Governance Committee

• Consumer Advisory Committee

• Credentialing and Privileging Committee

AUDITORS

• Johnsons MME (Victorian Auditor General’s representative)

• HLB Mann Judd (Internal Auditor)

FINANCE, AUDIT AND RISK COMMITTEE

• Mrs Jennie Gould (Independent Chair)

• Mr Paul Ukich

• Mrs Jacquie Ryan (Independent member)

• Mr Dale Brooks

• Mr Kade Beasley

IN ATTENDANCE

• Mrs Jacque Phillips (Chief Executive Officer)

• Mrs Carolyn Hargreaves (Director of Clinical Services)

• Mrs Fiona Luke (Human Resources and Support Services Manager)

• Ms Tania Hill (Executive Services Manager)

Board and Committees

BOARD ATTENDANCE

NO. MEETINGS ATTENDED (11)

Dale Brooks 8

Paul Ukich 11

Kade Beasley 11

Sarah Davies 10

Alex Monk 5

Pat West 11

COMMITTEE ATTENDANCE


Clinical Governance Committee

Pat West 7

Sarah Davies 7

Alex Monk 6



Finance, Audit & Risk Committee

Dale Brooks 8

Paul Ukich 10

Kade Beasley 10



Consumer Advisory Committee

Dale Brooks 3



Consumer Advisory Committee

Dale Brooks 0

Paul Ukich 3


NCN HEALTH – NATHALIA COBRAM NUMURKAH PARTNERSHIP

In 2018/19, Cobram District Health worked together with Numurkah District Health Service and Nathalia District Hospital under a shared services model across the three organisations.

During the year, a second stage of community engagement took place on the proposal to join the three health services as ‘NCN Health’ including: 165 attendees at ‘World Café Style’ engagement sessions held in Nathalia, Cobram and Numurkah; 72 survey responses; 506 engagements on Facebook; 10 meetings with community groups, staff and individuals; and 8 submissions received. Newsletters were published, 150 stakeholder letters were sent, advertising was undertaken and media publicity was utilised to reach communities. The dedicated NCN website had 591 views and the three health services provided information on the websites and facebook pages. This second stage of consultation added to the feedback collected in 2017/18.

An independent Due Diligence Report was carried out, which found no major issues of concern on the proposal to join services - this included a comprehensive assessment of clinical, financial, governance, regulatory and human resource matters.

The proposal to join services was unanimously supported by the three Boards following the consultation, due diligence report and careful consideration of the benefits and issues - with focus on improving health care for local communities.

We thank the community for their valuable input into the proposal, which has now been approved by the Minister for Health.

RESPIRATORY PROJECT Cobram District Health is part of the Moira Health Services Healthy Lung Project.

Did you know that 1 in 7 Australians over the age of 40 have Chronic Obstructive Pulmonary Disease (COPD) - the second leading cause of preventable hospitalisations in Australia.

Early diagnosis can lead to better outcomes. The Moira Health Services Healthy Lungs Project makes testing more readily available. A spirometer is a quick and easy test to measure lung function. It measures the amount of air people breathe in and out of their lungs. This can help monitor changes in lung capacity and aid in the early diagnosis of lung disease. A referral can be arranged through a GP, specialist, allied health professional or a registered nurse. Funding has continued for this important project.

MENTAL HEALTH SERVICES Mental health services were increased through a partnership between Cobram District Health, Numurkah District Health Service, Nathalia District Hospital and Yarrawonga Health. New Psychological Therapy Services and Mental Health Clinical Care Coordination for residents of Moira Shire have been funded by Murray Primary Health Network. Funding has continued for this valued service.

IRVIN HOUSE AGED CARE The final stages of planning for the upgrade of Irvin House took place in 2018-19 and works are underway following consultation with residents, families and staff. Finalising detailed design and going to tender is the focus in coming months

The upgrade works include an extension to the existing facility and the creation of seven new single rooms with ensuites. The project also includes building an internal courtyard (with garden) and creating a dementia-friendly environment.

The project is funded by a $1.6 million grant through the Victorian Government’s Rural Health Infrastructure Fund.

In the next stage, the plan is to convert six double rooms into single rooms, so residents will have greater privacy. A funding submission was made to the Department of Health and Human Services for the renovation of the double rooms. We received $290k from State Government.

Highlights


KITCHENA brand new, state of the art kitchen will be built at Cobram District Health, through a Rural Health Infrastructure Fund grant. The kitchen will continue to provide cooked meals on site to residents and inpatients across the health service. Staff are participating in the planning and look forward to an improved facility to work in plus brand new equipment.

MECHANICAL AND ELECTRICAL UPGRADEA mechanical upgrade took place at Cobram, including the replacement of the boiler system, installation of new air conditioning into Irvin House, and updated air conditioning and heating throughout the hospital. The replacement of the air conditioning system at Irvin House enables each resident to control the temperature in their rooms. The entire main switchboard was also upgraded to replace the old system.

INFORMATION TECHNOLOGY Planning for the upgrade of the wireless Information Technology system took place which will enable wifi access across the whole facility. The installation will be occurring over coming months.

FAMILY VIOLENCE TRAINING AND RESPONSEFamily violence is a serious health issue that has a profound impact on the psychological and physical well-being of those affected. Cobram District Health is currently implementing the Victorian Government’s Strengthening Hospital Responses to Family Violence (SHRFV) model across the organisation. The organisation is strengthening the capacity of health care professionals to identify and support people to help in the prevention of and response to family violence. Policies and procedures have been written, and staff training has been undertaken. Cobram District Health is committed to supporting our community and offering safe haven to anyone experiencing family violence.

CHILDREN’S HEALTHCobram District Health is working on a cutting edge project with Deakin University to improve the physical health and wellbeing of children in our area. The project, called ‘RESPOND’ began in 2016 with 376 children in the Moira region participating in a health related survey, facilitated by Deakin University. The surveys will be repeated in 2019 along with workshops. The purpose of the project is to develop a map of the causes of physical activity and healthy eating within the Ovens Murray/Goulburn region of Victoria, and support community members to collaboratively discuss and plan initiatives to improve the health of children within our community. The initial workshop brought representatives from Council, schools, childcare and many other local organisations together to begin the mapping process.

In May 2019 we started our first of 7 kindergarten children visits to our dental clinic. The children get to learn what happens at a dentist visit and meet our lovely dental students and nurses.

Smiles 4 Miles is an evidence-based program implemented in early childhood services to improve the oral health of pre-school aged children and their families. Smiles 4 Miles was developed by Dental Health Services Victoria in 2004 in response to the alarming rates

of tooth decay experienced by young children in Victoria. The program uses a whole service approach by engaging children, their families, educators, staff, management and the broader community to create a healthy environment. Smiles 4 Miles has three key messages; Drink well, Eat well and Clean well.

Highlights continued


DEMENTIA AWARENESS AND TRAINING Cobram District Health partnered with Dementia Australia to run workshops for families, residents, volunteers and staff to help them better understand how to care for the growing number of Australians suffering from a form of Dementia. The second largest cause of death for Australians, Dementia, refers to a group of cognitive conditions such as Alzheimer’s, Vascular dementia, Dementia with Lewy bodies or Alcohol related dementia to name a few. Dementia education was taken up by staff and the families, volunteers and carers workshop was well attended with people learning how to engage with someone with dementia, strategies to have a “good visit” and how to recognise the behaviour changes that are caused by the underlying disease. Virtual reality technology also gave staff a chance to experience first hand what it feels like to have dementia. The Dementia project ran for two months providing an opportunity for everyone to gain skills and build awareness.

NAIDOC WEEK - JULY 2018 Aunty Faye Lynam, Yorta Yorta Elder, came with her family bringing gifts of story, dance, music and food to help us celebrate our first ever NAIDOC Week at Cobram District Health. About 70 staff, residents, friends and visitors sat spellbound as Aunty Faye traced the journey of her life.

After this we were treated to the first ever performance by her grandchildren to whom she has been teaching traditional dance. Strathmerton artist and didgeridoo player Greg Robinson played as Jaella, Paiton and Ethan showed us their kangaroo, emu and other dances that they have been learning. We finished with a barbecue and shared Johnny cakes, a flat bread damper cooked over the coals.

MEDICAL CLINIC CHECK IN KIOSK In response to community feedback, new electronic ‘check in’ kiosks were commissioned for the Medical Clinic and are helping with congestion at the front desk. People who have already made an appointment can register at the kiosks next to the front door in the foyer and take a seat. We have improved our administration processes to support our doctors to keep appointments on schedule. Our doctors, practice nurses and specialists service over 30,000 appointments per year and we aim to provide an excellent health experience for every consumer every time.

FACEBOOK PAGECobram District Health launched a Facebook page in February 2019, enhancing communication and engagement with the community.


Labour Category JUNE Current Month FTE Average Monthly FTE

2018 2019 2018 2019

Nursing 65.17 68.96 63.80 69.68

Administration and Clerical 23.75 20.75 23.31 21.87

Medical Support 2 0 2 0

Hotel and Allied Services 19.42 22.15 18.94 23.62

Hospital Medical Officers 1 1.4 1 1.35

Sessional Clinicians 0 0 0 0

Ancillary Staff (Allied Health) 13.35 12.85 12.31 11.59

Total 124.69 126.11 121.36 128.11

The FTE figures reported in the table are those excluding overtime. These also do not include contracted staff (e.g. agency nurses, fee for service, visiting medical officers) who are not reported as employees for this purpose.

The data reported in this table is consistent with that provided in the Minimum Dataset.

EMPLOYMENT AND CONDUCT PRINCIPLES Cobram District Heath is committed to the application of public sector employment principles. It has reviewed employment processes to ensure that employment decisions are based on merit, employees are treated fairly and reasonably, equal employment opportunities are provided and employees have a reasonable avenue to redress unfair or unreasonable treatment.

CODE OF CONDUCTAll Cobram District Health staff are required to abide by the Code of Conduct, which is based on the Code of Conduct for Victorian Public Sector Employees.

Workforce Data

Administration & Clerical 21.87

Nursing 69.68

Hotel & Allied Health Services 23.62

Ancillary Staff (Allied Health) 23.60

Hospital Medical Officers 1.35


Executive Services Manager

Chief Executive Officer

Director of Medical Services

Maintenance

Organisational Structure

Community Engagement Officer

Director of Clinical Services

Director of People and Culture

Management Accountant

Director of Corporate Services

Environmental Services Team

Lead

Catering Services Team

Lead

Supply Stores Coordinator

Finance Clerk

People and Culture

Manager

Information Technology

Payroll

OH&S

Central Admin

Team Lead

Visiting Medical Officers

and Dentists

Specialists

After Hours

Managers

Education

Infection Control

Pharmacy

Quality & Safety

NUM - Actue

NUM - ActueNUM

- Theatre

NUM - Actue

NUM - Irvin House

NUM - Actue

NUM - Community

Health

NUM - Medical

Dental Clinic


Statutory RequirementsOCCUPATIONAL HEALTH AND SAFETYCobram District Health continues to demonstrate its commitment to Occupational Health and Safety.

Cobram District Health management endeavours to ensure all people – staff, volunteers, contractors and the general public, have the highest level of protection against risks to health and safety. Cobram District Health also recognises those who manage or control events that create health and safety risks are responsible for eliminating or minimising potential damage as a result of those risks. Cobram District Health is proactive in promoting health and safety in the workplace through education, development of policies and procedures and staff training.

Cobram District Health ensures that consultation, information and ideas about actual risks and potential risks and how to control them is shared and employees are actively encouraged to highlight any actual or potential safety issues through the Health and Safety Representative in each department. Health and Safety Representatives receive annual training and attend monthly Safe Practice and Environment Committee meetings.

Cobram District Health acknowledges that improvement of workplace safety standards is best achieved through consultation, participation and training, and will continue to improve its performance in compliance with all relevant codes, legislation and standards.

Number of reported hazards/incidents for the year 462 incidents

Number of ‘lost time’ standard claims for the year 3,840.25 hours lost

Average cost per claim for the year (including payments to date and an estimate of outstanding claim costs as advised by WorkSafe) $109,535.64

Two Years of data on these indicators 2018 – 1283 hours lost2018 – $40,238.44

2017 – 176 hours lost2017 – $7,093.00

Fatalities Nil

OCCUPATIONAL VIOLENCEThe following statistics have been collated for Occupational Violence in the workplace at Cobram District Health:

Occupational Violence Statistics 2018/19

1. Workcover accepted claims with an occupational violence cause per 100 FTE Nil

2. Number of accepted Workcover claims with lost time injury with an occupational violence cause per 1,000,000 hours worked.

Nil

3. Number of occupational violence incidents reported 48

4. Number of occupational violence incidents reported per 100 FTE 38.06

5. Percentage of occupational violence incidents resulting in a staff injury, illness or condition 4

For the purposes of the above statistics the following definitions apply:

Occupational violence - any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment.

Incident - occupational health and safety incidents reported in the health service incident reporting system. Code Grey reporting is not included. However, if an incident occurs during the course of a planned or unplanned Code Grey, the incident must be included.

Accepted Workcover claims - accepted Workcover claims that were lodged in 2018/19.

Lost time - is defined as greater than one day.

Injury, illness or condition - This includes all reported harm as a result of the incident, regardless of whether the employee required time off work or submitted a claim.


COMPLIANCE WITH THE BUILDING ACTThe Minister for Finance has issued instructions in accordance with the Building Act 1993 stating that all public service entities ensure buildings under their control are: safe and fit for occupation, comply with statutory requirements and are maintained to a standard where they remain fit for occupancy. Cobram District Health reports annually on the measures taken to comply with the provision of the Act. Cobram District Health remains compliant with the building and maintenance provisions of the Building Act 1993.

OCCUPANCY PERMITS AND CERTIFICATES OF FINAL INSPECTIONCobram District Health’s Occupancy Permits and Certificates of Final Inspection are all current.

BUILDING WORKSNil.

ESSENTIAL SAFETY MEASURESCobram District Health complies with building standards and regulations, with all works completed in 2018/19 according to the Building Act 1993, the Building Code of Australia, Standard for Publicly Owned Buildings 1994 and relevant statutory regulations.

All essential safety measures have been maintained, so far as is practicable, in accordance with the Building Regulations 2006 as is recorded in the Annual Essential Safety Measures Report.

Essential Safety Measures Reports are prepared annually for properties owned by Cobram District Health to confirm that all of the essential safety services are operating as required.

Cobram District Health ensures works are inspected by independent building surveyors and maintains a register of building surveyors, as well as the jobs they have certified and for which occupancy certificates have been issued.

FIRE AUDIT COMPLIANCE The Cobram District Health Fire Audit is current.

FREEDOM OF INFORMATIONA person has the right to gain access to the information held by Cobram District Health about him/her through Freedom of Information (FOI).

The Freedom of Information Act gives a person the right to request documents held by public hospitals.

A person can make a request, or can authorise another person (for example, a solicitor) to make a request on their behalf.

Important information regarding a Freedom of Information (FOI) request.

• The person the requested information relates too, MUST sign the application form.

• An application fee applies to all requests. $29.60

• Note: Centrelink card holders are exempt from all fees and charges on production of a copy of their signed Centrelink card.

• To avoid delays, the application fee should accompany this request.

• Additional costs may be incurred for research, copying and postage of documents.

• FOI requests may take up to 45 working days to process.

• All applications should be addressed to the FOI Officer.

For further information or assistance please contact the FOI Officer on (03) 5871 0777.

The Freedom of Information Act 1982, Information Privacy Act 2000 and the Health Records Act 2001 provides to members of the public access to their medical records for the purpose of viewing, amending incorrect notations or copying parts of the record.

During the year there were 46 requests of Cobram District Health under the Act including:

• 11 personal requests

• 27 from solicitors

• 6 from Coroners

• 2 from Victoria Police

SAFE PATIENT CARE ACTCobram was not required to make any disclosures during the reporting period under the Safe Patient Care Act 2015.

CARERS RECOGNITION ACTCobram District Health recognises the Carers Recognition Act 2012. The Carers Recognition Act 2012 recognises and values the role of carers and the importance of care relationships in the Victorian community. The Act includes a set of principles about the significance of care relationships and specifies obligations for state government agencies, local councils and other organisations that interact with people in care relationships.


https://www.cobramdistricthealth.org.au/wp-content/uploads/FOI_Request_Form_-_2016.pdf

Statutory Requirements continuedPROTECTED DISCLOSURE ACTCobram District Health is committed to the aims and objectives of the Protected Disclosures Act 2012 which came in to effect in February 2013.

Cobram District Health does not tolerate improper conduct by its employees, officers, directors, nor the taking of reprisals against those who come forward to disclose such conduct.

Cobram District Health recognises the value of transparency and accountability in our administrative and management practices, and support the making of disclosures that reveal inappropriate action resulting in the mismanagement of public resources.

Cobram District Health will take reasonable steps to protect people who make such disclosures from any detrimental action in reprisal for making such a disclosure.

There were 0 disclosures made in the year ended 30 June 2019 as per the Protected Disclosure Act 2012.

COMPETITIVE NEUTRALITYThe Health Service complies with all the government policies regarding competitive neutrality in regard to all tender applications.

CONSULTANCIESDetails of consultancies (under $10,000)

In 2018/19 there were 3 consultancies where the total fees payable to the consultants was less than $10,000. The total expenditure incurred during 2018/19 in relation to these consultancies is $11,062.30 (excluding GST).

Details of consultancies (valued at $10,000 or greater)

In 2018/19, there were 4 consultancies where the total fees payable to the consultants were $10,000 or greater. The total expenditure incurred during 2018/19 in relation to these consultancies is $163,009.24 (excluding GST). Details of these individual consultancies are as follows:

LOCAL JOBS FIRST POLICYCobram District Health abides by the principles of the Local Jobs First Policy. This policy applies to all tenders in regional Victoria over $1 million. The Department of Health and Human Services Capital Management Branch reports Local Jobs First Policy Disclosures for all projects managed by the Department of Health and Human Services. In 2018/19 there were no contracts entered into to which Local Jobs First Policy applied.

ENVIRONMENTAL PERFORMANCECobram District Health is committed to environmental sustainability.

2018/19

Electricity (kWH) 189,404,36.52

Natural Gas (MJ) 39,648.64

Water (kL) 15,987

Waste Management (kgs) 47,986

General WasteCardboard (recycling)Co-Mingle (recycling)

2,069 4,987

Consultant Purpose of Consultancy Start DateEnd

Date

Total approved project

(excl GST)Expenditure

(excl GST)

Future expenditure

(excl GST)

Cube Organisational re-design 01/08/19 Ongoing $45,000.00 $45,000.00

James Seymour Capital Works Project2017/18

Financial Year Ongoing $146,700.00 $97,195.60 $49,504.40

Cathy Balding

Develop strategic quality framework clinical governance 01/10/18 31/10/18 $10,313.64 $10,313.64

Lake Young & Associates

Fire safety engineering consult 07/10/18 07/10/18 $10,500.00 $10,500.00


DETAILS OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) EXPENDITUREThe total ICT expenditure incurred during 2018/19 was $234,295.43 (excluding GST) with the details shown as follows:

Business As Usual (BAU) ICT expenditure

Non-Business As Usual (non-BAU) ICT expenditure

Total (excluding GST) Total=Operational expenditure and Capital Expenditure (excluding GST) (a) + (b)

Operational expenditure (excluding GST) (a)

Capital expenditure (excluding GST) (b)

$219,431.61 $14,863.82 $0 $14,863.82

ADDITIONAL INFORMATIONDetails in respect of the items listed below have been retained by the health service and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

• Declarations of pecuniary interests have been duly completed by all relevant officers;

• Details of shares held by senior officers as nominee or held beneficially;

• Details of publications produced by the entity about itself, and how these can be obtained;

• Details of changes in prices, fees, charges, rates and levies charged by the Health Service;

• Details of any major external reviews carried out on the Health Service;

• Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the report of operations or in a document that contains the financial statements and report of operations;

• Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit;

• 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;

• Details of assessments and measures undertaken to improve the occupational health and safety of employees;

• A 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;

• A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which those purposes have been achieved;

• Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.


Goals Strategies Health Service Deliverables Outcomes

Better Health

A system geared to prevention as much as treatment

Everyone understands their own health and risks

Illness is detected and managed early

Healthy neighbourhoods and communities encourage healthy lifestyles

Better Health

Reduce statewide risks

Build healthy neighbourhoods

Help people to stay healthy

Target health gaps

Work in partnership with Moira Health Services to further develop and implement chronic care services based on population health needs.

Achieved. The focus of the Early Intervention in Chronic Disease program has been on respiratory conditions with staff training, education to support consumers in self-management when diagnosed.

Partner with Numurkah District Health Service for the Better Care Victoria funded Urgent Care Project. This involves consumer participation and engagement strategies to increase health literacy around the right care in the right place and promotes avoidance of unnecessary emergency department attendances.

Achieved. Partnerships are in place with GV Health, Kyabram, Numurkah, Nathalia and Ambulance Victoria.

The Choose Well, Feel Better public campaign is designed to impact demand management by directing people to the most appropriate service for their condition, including: pharmacy, advice line, Urgent Care Centre, GP or Emergency Department.

The introduction of Urgent care clinical pathways and the SMS patient experience monitor have taken place.

General and economic evaluations have taken place to examine the project’s impact.

PART A:Statement of Priorities - Outcomes



Healthy neighbourhoods and communities encourage healthy lifestyles

Partner with Numurkah District Health Service for Murray Primary Health Network funded Moira Respiratory Project. This will encompass improved local access to spirometry and evidence based pulmonary rehabilitation program.The Respiratory Project will also train additional Quit educators to facilitate community sessions.

Achieved. The Project Team was appointed in February 2018.

Spirometry testing commenced at Cobram, Nathalia, Numurkah and Yarrawonga.

Pulmonary Rehabilitation programs have been strengthened at Cobram, Yarrawonga, Nathalia and Numurkah.

QUIT Victoria provided onsite education.

Partner in ‘More 4 Moira’, childhood obesity project including Deakin University research study.

Achieved. The Deakin RESPOND project commenced in the Cobram catchment in February 2019. Engagement with the local community included schools, service clubs and community members.

Undertake community engagement with local food retailers to focus on access to tap water, encourage breastfeeding and healthy menus.

Achieved. Through the Moira Health Promotion Collaboration and in partnership with Local Government, the breastfeeding friendly venue map has been developed. Work continues to educate local businesses on healthy options. The Good Food is Good Business booklet was developed and distributed by the Health Promotion Collaboration.

Embed the Strengthening Hospital Responses to Family Violence model for identifying and responding to family violence by:

• Training four Cobram District Health staff to be ongoing in-house trainers in workplace support.

• Face to face training for all staff and volunteers.

• Implementation of a Family violence workplace support Program to support staff experiencing family violence.

• Training for new staff during orientation.

Achieved. A partnership has been developed with GV Health. A working group and shared resources continues between Cobram, Numurkah and Nathalia health services.

A Project Plan was developed and implemented with family violence contact officers appointed.

Staff training has been completed and policies/procedures/guidelines implemented.

Training has been incorporated into orientation for staff, with two sessions held to date for 2019.




Better Access

Care is always there when people need it

More access to care in the home and community

Better Access

Plan and invest

Unlock innovation

Provide easier access

Ensure fair access

Partner with Numurkah District Health Service for Murray Primary Health Network funded Psychological Treatment Services to develop pathways to improve access to psychological services across Moira.

Achieved. A partnership was formed with Numurkah District Health Service to review existing referral pathways and a triage tool was developed in line with the State mental health triage guidelines.

Develop a care coordination model between community health and the acute ward to reduce number of unplanned admissions within 28 days and reduce length of stay.

Achieved. Case review meetings are held weekly with community health and the acute ward to plan and support appropriate discharge process. Referral documentation has been reviewed and updated to improve communication and coordination of patient care.

People are connected to the full range of care and support they need

There is equal access to care

Participate in cultural diversity events such as Harmony Day and National Aborigines and Islanders Day Observance Committee (NAIDOC) week.

Achieved. Harmony Day was celebrated by a large number of staff and volunteers, with a food sharing event.

Planning is in place to hold a combined NAIDOC week with Nathalia District Hospital and Numurkah District Health Service, and Aunty Faye.

Better Care

Target zero avoidable harm

Healthcare that focusses on outcomes

Patients and carers are active partners in care

Care fits together around people’s needs

Better Care

Put quality first

Join up care

Partner with patients

Strengthen the workforce

Embed evidence

Ensure equal care

Participate in the Safer Care Victoria Sepsis Management Pathway in Urgent Care setting in partnership with four neighbouring health services.

Achieved. Participation with Safer Care Victoria has commenced.

Education has been provided to staff, and use of the Sepsis pathways has commenced in the Urgent Care Centre. Ongoing monitoring continues.

Hold a workshop in August 2018 to commence development of a strategic quality plan. Implement and monitor clinical Key Performance Indicators and new clinical governance framework.

Achieved. Quality Workshops were held in August 2018 to assist with the development of the Strategic Quality Plan, which was adopted and implementation commenced in October 2018.

Develop/ undertake an Urgent Care Centre Patient Experience Survey and monitor the results.

Achieved. A survey was developed and results tabled at project control meetings.

The SMS feedback results info graphic was developed in October 2018 and placed in newsletters



Participate in Safer Care Victoria’s Patient Opinion pilot.

Achieved. Cobram District Health is actively participating in the Patient Opinion project. Information has been communicated to staff via meetings and internal newsletters. The community has been provided with information brochures, which are available in all waiting areas. Information has also been provided to the community via local media. Promotion continues.

Implement end of life planning (Advance Care Plans and Advance Care Directives) through community workshops and events. Increase number of people with Advance Care Plans over 75 years by 10%.

Achieved. Community engagement has been undertaken through a joint community forum and end of life planning has been raised at local community engagement events.

A quality end of life committee was established and increased engagement and time allocation on advanced care planning occurred in the Medical Clinic. We are monitoring and are seeing an increase in patients with advanced care plans above 10%.

Implement a robust clinical review system and processes with Director Medical Service’s leadership.

Achieved. Regular clinical reviews have been conducted, with investigation reports and recommendations provided to the Director of Medical Services. All documentation has been provided and discussed at monthly Morbidity and Mortality Committee meetings, and reported to Clinical Governance Committee.

By June 2019 all patients entering Cobram District Health with delirium will be identified and managed with the new government implemented initiatives. This will include:

• Implementation of the initial Statewide Point Prevalence survey of delirium in acute health care settings submission of data to the Department of Health and Human Services by 20 August 2018.

• Implementation of initiatives once the report (from the Department of Health and Human Services) is finalised and recommendations are released.

Achieved. The report was received and results reported to the Quality Services Committee. Education was provided to staff around the Delirium Clinical Care Standard.

A case review specifically related to Delirium was conducted, and outcomes and subsequent education has been provided to staff.

Delirium assessment and care is monitored through our comprehensive care monthly organisational meeting.

Further steps are to be completed in benchmarking throughout NCN Health and a biannual point prevalence survey is to be completed.



Specific 2018-19 priorities (mandatory)

Disability Action Plans

Draft disability action plans are completed in 2018-19.

Submit a draft disability action plan to the department by 30 June 2019. The draft plan will outline the approach to full implementation within three years of publication.

In progress. Our Disability Action Plan is embedded in our Diversity Plan. We are currently updating and finalising it before submitting.

This year our Consumer Advisory Committee reviewed our Diversity plan and in response, established a Disability Access Working Party, consisting of Cobram District Health staff and consumers living with a range of disabilities. Together they reviewed and prioritised the existing disability access audit. Through this engagement we have been able to achieve significant progress on the task of retrofitting existing buildings, by prioritising the areas that make the most difference to consumers with disabilities.

Explore and strengthen partnerships with the National Disability Insurance Scheme (NDIS) and with Providing All Living Supports (PALS) within Moira Shire.

Achieved. Our Community Service manager, Kim Fitzgerald presented at the Cobram Disability Inclusion in Volunteering Community Forum.

We remain in constant dialogue with Cobram Community House, which has been instrumental in engaging with the community around NDIS. As we are not an NDIS service, our role has been a support one.

We continue to regularly attend the Moira Shire Disability Advisory Committee.

Monthly ‘morning tea’ community engagement with the local PALS group commenced in February 2019. Joint education was provided to staff with local PALS group, focused on cultural awareness and dementia training.




Volunteer engagement

Ensure that the health service executives have appropriate measures to engage and recognise volunteers

Implement a regular volunteer newsletter that is distributed to volunteers and continue to celebrate Volunteer Week and sponsor volunteer Christmas functions.

Achieved. Volunteers continue to be celebrated through individual profiles in our community page in the local paper. They talk about what inspired them to volunteer and what they get out of volunteering. This acts as a combined celebration and recruitment strategy.

Volunteers were invited to the Irvin House Christmas Party 2018, as they are every year. This is a celebration for residents and their families, volunteers, board members and staff.

We have established a regular bi-monthly newsletter for aged care and a volunteer specific newsletter is in the planning stages with the first edition to be produced by the end of 2019.

Nominations for relevant awards will be submitted to recognise individual volunteer contribution.

Achieved. The president of our Ladies Auxiliary, Mary Powell was nominated for Victorian Senior of the Year in recognition of her outstanding service. She received a certificate of recognition and appreciation from the Minister.

We ran a thank you afternoon tea during volunteer week at Irvin House to celebrate and thank out volunteers for their contribution at which each volunteer was awarded an appreciation certificate.



Undertake an analysis of volunteer needs across the organisation with the aim to increase volunteer numbers from 10 to 20 in 2018-19.

Achieved. We had many new volunteers in 2018/19. As at 30 June, we had 26 active volunteers which exceeded our target.

We round with volunteers on a regular basis.

Requests for training opportunities have resulted in the provision of consumer participation training, dementia workshops and cultural awareness training.

We held a consultation meeting with the acute volunteers about streamlining their paper work and incorporated their suggestions into the new system. We are in the process of overhauling the volunteer data system and uploading the files to an online volunteer management system “Better Impact”.

Bullying and harassment

Actively promote positive workplace behaviours and encourage reporting. Utilise staff surveys, incident reporting data, outcomes of investigations and claims to regularly monitor and identify risks related to bullying and harassment, in particular include as a regular item in Board and Executive meetings. Appropriately investigate all reports of bullying and harassment and ensure there is a feedback mechanism to staff involved and the broader health service staff.

Encourage and increase participation in People Matters Survey, then analyse results for bullying and harassment and develop an action plan. Provide feedback to Board and all staff on People Matter survey results and the action plan.

Achieved. An action plan has been developed in conjunction with Nathalia District Hospital and Numurkah District Health Service to identify support for staff, including incentives and understanding ‘why’.

Face to face staff training to be implemented in 2018.

Achieved. Cobram District Health provided ‘face to face’ Bullying and Harassment Training to all staff in 2018. It forms part of Orientation Day and is a Mandatory competency.

Investigate all incidences of bullying and harassment and implement recommendations from investigations and reviews.

Achieved. All incidents are being investigated. An external consultant has been engaged to conduct investigations and provide education to support management and staff.




Occupational violence

Ensure all staff who have contact with patients and visitors have undertaken core occupational violence training, annually. Ensure the department’s occupational violence and aggression training principles are implemented.

Partner with neighbouring health services to review and re-commence face to face occupational violence training program.

Achieved. Face to face training has been conducted in conjunction with Nathalia District Hospital and Numurkah District Health Service with sessions held in April 2019.

Monitor and conduct monthly reporting of all occupational violence incidents and actions undertaken.

Achieved. Monthly reporting of Occupational Violence and Aggression is presented to the Safe Practice and Environment, Clinical Governance and Board Committees.

Environmental Sustainability

Actively contribute to the development of the Victorian Government’s policy to be net zero carbon by 2050 and improve environmental sustainability by identifying and implementing projects, including workforce education, to reduce material environmental impacts with particular consideration of procurement and waste management, and publicly reporting environmental performance data, including measureable targets related to reduction of clinical, sharps and landfill waste, water and energy use and improved recycling.

Undertake a review of waste management across the organisation and identify new initiatives to improve the amount of waste and recycling occuring at Cobram District Health.

Achieved. The Waste Management Committee has been reintroduced as part of the Safe Practice and Environment Committee (SPEC). A waste management audit is booked to be completed. Results from this will be implemented and monitored through the SPEC committee.

Publicly report on environmental performance data in Annual Report.

Achieved. This information is provided in the 2018/19 Annual Report for Cobram District Health.

LGBTI

Develop and promulgate service level policies and protocols, in partnership with LGBTI communities, to avoid discrimination against LGBTI patients, ensure appropriate data collection, and actively promote rights to free expression of gender and sexuality in healthcare settings. Where relevant, services should offer leading practice approaches to trans and intersex related interventions.

Review policies and procedures, to promote and support inclusion of our LGBTI community and to avoid discrimination against LGBTI patients.

Achieved. Staff were provided with the opportunity to attend Aged Care LGBTI training in February 2019. A total of six staff attended.

Staff also attended LGBTIQA+ training in May 2019.


PART B:Performance Priorities 2018/19High quality and safe careKey performance indicator Target Result

ACCREDITATION

Accreditation against the National Safety and Quality Health Service Standards

Accredited Full compliance

Compliance with the Commonwealth’s Aged Care Accreditation Standards Accredited Full compliance

INFECTION PREVENTION AND CONTROL

Compliance with the Hand Hygiene Australia program 80% 81.8%

Percentage of healthcare workers immunised for influenza 80% 95%

PATIENT EXPERIENCE

Victorian Healthcare Experience Survey – data submission Full compliance Full compliance

Victorian Healthcare Experience Survey – percentage of positive patient experience responses - quarter 1

95% 97.7%


95% 97.3%


95% 95.1%

Victorian Healthcare Experience Survey – percentage of very positive responses to questions on discharge care - quarter 1

75% 88.6%


75% 83.3%


75% 82.7%

Victorian Healthcare Experience Survey – patients perception of cleanliness - quarter 1

70% 89.6%


70% 84.3%


70% 88.9%

ADVERSE EVENTS

Sentinel events – root cause analysis (RCA) reporting All RCA reports submitted within 30 business days


Strong governance, leadership and cultureKey performance indicator Target Result

ORGANISATIONAL CULTURE

People matter survey - percentage of staff with an overall positive response to safety and culture questions

80% 75%

People matter survey – percentage of staff with a positive response to the question, “I am encouraged by my colleagues to report any patient safety concerns I may have”

80% 85%

People matter survey – percentage of staff with a positive response to the question, “Patient care errors are handled appropriately in my work area”

80% 80%

People matter survey – percentage of staff with a positive response to the question, “My suggestions about patient safety would be acted upon if I expressed them to my manager”

80% 76%

People matter survey – percentage of staff with a positive response to the question, “The culture in my work area makes it easy to learn from the errors of others”

80% 74%

People matter survey – percentage of staff with a positive response to the question, “Management is driving us to be a safety-centred organisation”

80% 75%

People matter survey – percentage of staff with a positive response to the question, “This health service does a good job of training new and existing staff”

80% 67%

People matter survey – percentage of staff with a positive response to the question, “Trainees in my discipline are adequately supervised”

80% 70%

People matter survey – percentage of staff with a positive response to the question, “I would recommend a friend or relative to be treated as a patient here”

80% 74%

Effective financial managementKey performance indicator Target Result

FINANCE

Operating result ($m) 0.05 0.35

Average number of days to paying trade creditors 60 days 68 days

Average number of days to receiving patient fee debtors 60 days 31 days

Adjusted current asset ratio 0.7 or 3% improvement from

health service base target

1.27

Number of days of available cash 14 days 26.6 days

Net result from transactions (NRFT) variance for the current financial year ending 30 June

Variance ≤ $250,000

Not achieved


PART C:Activity and Funding 2018/19

Small Rural Primary Health & HACC

Nursing 863 Service hours

Intake 429 Service hours

Allied Health

Care Coordination 43 Service hours

Counselling/Casework 291 Service hours

Dietetics 491 Service hours

Health Promotion 4 Service hours

Occupational Therapy 217 Service hours

Physiotherapy 906 Service hours

Podiatry 127 Service hours

Speech Pathology/Therapy 309 Service hours

Total 3,680 Service hours

Small Rural Residential Care 10,848 Bed days

Health Workforce 3 No. of students

Small Rural Health Independence Program 4,148

Other specified funding -

Funding Type 2018/19 Activity Achievement

Small Rural

Small Rural Acute 679 WIES equivalents








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AttestationsFINANCIAL MANAGEMENT COMPLIANCE ATTESTATION

I, Dale Brooks, on behalf of the Responsible Body, certify that Cobram District Health has complied with the applicable Standing Directions of the Assistant Treasurer under the Financial Management Act 1994 and Instructions.

Dale Brooks Board Chair, Cobram District Health 27 August 2019

DATA INTEGRITY

I, Jacque Phillips, certify that Cobram District Health has put it place appropriate internal controls and processes to ensure that reported data accurately reflects actual performance. Cobram District Health has critically reviewed these controls and processes during the year.

Jacque Phillips Chief Executive Officer, Cobram District Health 27 August 2019

CONFLICT OF INTEREST

I, Jacque Phillips, certify that Cobram District Health has put in place appropriate internal controls and processes to ensure that it has complied with the requirements of hospital circular 07/2017 Compliance reporting in health portfolio entities (Revised) and has implemented a ‘Conflict of Interest’ policy consistent with the minimum accountabilities required by the VPSC. Declaration of private interest forms have been completed by all executive staff within Cobram District Health and members of the board, and all declared conflicts have been addressed and are being managed. Conflict of interest is a standard agenda item for declaration and documenting at each executive board meeting.


INTEGRITY, FRAUD AND CORRUPTION

I, Jacque Phillips, certify that Cobram District Health has put in place appropriate internal controls and processes to ensure that Integrity, fraud and corruption risks have been reviewed and addressed at Cobram District Health during

the year.


COMPLIANCE WITH HEALTH PURCHASING VICTORIA (HPV) HEALTH PURCHASING POLICIES

Where a service is compliant:

I, Jacque Phillips, certify that Cobram District Health has put in place appropriate internal controls and processes to ensure that it has complied with all requirements set out in the HPV Health Purchasing Policies including mandatory HPV collective agreements as required by the Health Services Act

1988 (Vic) and has critically reviewed these controls and processes during the year.








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Five Year Financial Summary For the year ended 30 June 2019

Summary of the financial results for the year

2019 $000

2018 $000

2017 $000

2016 $000

2015 $000

Operating Result 336 1,384 (547) (2) 136

Total Revenue 22,328 20,252 17,145 15,241 15,566

Total Expenses 19,796 19,734 18,412 16,935 16,701

Net Results from Transactions 2,532 518 (1,267) (1,694) (1,135)

Total Other Economic Flows 58 (69) 31 (127) 0

Net Result 2,590 449 (1,236) (1,821) (1,135)

Total Assets 27,522 22,766 20,279 21,509 22,852

Total Liabilities 5,417 5,512 4,919 4,913 4,559

Net Assets/Total Equity 22,105 17,254 15,360 16,596 18,293

*The Operating result is the result for which Cobram District Health is monitored in the Statement of Priorities.

Reconciliation between the Net Result from Transactions reported in annual financial statements to the Operating result as agreed in the SoP

2019 $000

Net operating result* 336

Capital and specific items

Capital purpose income 3,771

Specific income -

Assets provide free of charge -

Assets received free of charge -

Expenditure for capital purpose (14)

Depreciation and amortisation (1,561)

Impairment of non-financial assets -

Finance Costs (Other) (not general finance costs) -

Net results from transactions 2,532

*The Net operating result is the result which the health service is monitored against in its Statement of Priorities


Disclosure Index

Legislation Requirement Page Reference

Ministerial Directions Report of Operations

Charter and purpose FRD 22H Manner of establishment and the relevant Ministers 3FRD 22H Purpose, functions, powers and duties 3FRD 22H Nature and range of services provided 4FRD 22H Activities, programs and achievements for the reporting period 6, 13FRD 22H Significant changes in key initiatives and expectations for the future 6, 13

Management and structure FRD 22H Organisational structure 17FRD 22H Workforce data/ employment and conduct principles 16FRD 22H Occupational Health and Safety 18

Financial information FRD 22H Summary of the financial results for the year 34FRD 22H Significant changes in financial position during the year 34FRD 22H Operational and budgetary objectives and performance against objectives 31FRD 22H Subsequent events 81FRD 22H Details of consultancies under $10,000 20FRD 22H Details of consultancies over $10,000 20FRD 22H Disclosure of ICT expenditure 21

Legislation FRD 22H Application and operation of Freedom of Information Act 1982 19FRD 22H Compliance with building and maintenance provisions of Building Act 1993 19FRD 22H Application and operation of Protected Disclosure 2012 20FRD 22H Statement on National Competition Policy 20FRD 22H Application and operation of Carers Recognition Act 2012 19FRD 22H Summary of the entity’s environmental performance 20FRD 22H Additional information available on request 21

Other relevant reporting directives FRD 25C Local Jobs First Policy disclosures 20SD 5.1.4 Financial Management Compliance attestation 33SD 5.2.3 Declaration in report of operations 3

Attestations Attestation on Data Integrity 33Attestation on Managing Conflicts of Interest 33Attestation on Integrity, Fraud and Corruption 33

Other reporting requirements Reporting of outcomes from Statement of Priorities 2018–19 22Occupational Violence reporting 18Reporting of compliance Health Purchasing Victoria policy 33Reporting obligations under the Safe Patient Care Act 2015 19

The annual report of Cobram District Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.


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FINANCIAL REPORT2018/19


Independent Auditor’s Report To the Board of NCN Health

Opinion I have audited the financial report of Cobram District Health (the health service) which comprises the:

• balance sheet as at 30 June 2019 • comprehensive operating statement for the year then ended • statement of changes in equity for the year then ended • cash flow statement for the year then ended • notes to the financial statements, including significant accounting policies • board member's, accountable officer's and chief finance & accounting officer's

declaration.

In my opinion the financial report presents fairly, in all material respects, the financial position of the health service as at 30 June 2019 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the Financial Management Act 1994 and applicable Australian Accounting Standards.

Basis for Opinion

I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Auditing Standards. I further describe my responsibilities under that Act and those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report.

My independence is established by the Constitution Act 1975. My staff and I are independent of the health service in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Board’s responsibilities for the financial report

The Board of the health service is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Financial Management Act 1994, and for such internal control as the Board determines is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Board is responsible for assessing the health service’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.

2

Auditor’s responsibilities for the audit of the financial report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the health service’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board

• conclude on the appropriateness of the Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the health service’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the health service to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 9 September 2019

Travis Derricott as delegate for the Auditor-General of Victoria


2

Auditor’s responsibilities for the audit of the financial report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

• identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the health service’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board

• conclude on the appropriateness of the Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the health service’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the health service to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 9 September 2019

Travis Derricott as delegate for the Auditor-General of Victoria


Cobram District HealthTable of ContentsCobram District Health has presented its audited general purpose financial statements for the financial year ended 30 June 2019 in the following structure to provide users with the information about Cobram District Health’s stewardship of resources entrusted to it.

Page

Board Member’s, Accountable Officer’s and Chief Finance & Accounting Officer’s Declaration 41Auditor-General’s Report 38Comprehensive Operating Statement 42Balance Sheet 43Statement of Changes in Equity 44Cash Flow Statement 45Basis of preparation 46Note 1: Summary of significant Accounting Policies 47Note 2: Funding delivery of our services 48

Note 2.1: Income from transactions 49Note 3: The cost of delivering our services 51

Note 3.1: Expenses from transactions 52Note 3.2: Other economic flows 53Note 3.3: Employee benefits in the Balance Sheet 54

Note 4: Key Assets to support service delivery 56Note 4.1: Property, plant and equipment 57Note 4.2: Depreciation and amortisation 63Note 4.3: Intangible assets 64

Note 5: Other assets and liabilities 65Note 5.1: Receivables 66Note 5.2: Payables 67Note 5.3: Other liabilities 67

Note 6: How we finance our operations 68Note 6.1: Borrowings 69Note 6.2: Cash and cash equivalents 69Note 6.3: Commitments for expenditure 70

Note 7: Risks, contingencies and valuation uncertainties 71Note 7.1: Financial instruments 72Note 7.2: Contingent assets and contingent liabilities 75

Note 8: Other disclosures 76Note 8.1: Reconciliation of net result for the year to net cash inflow - (outflow) from operating activities 77Note 8.2: Responsible persons disclosures 77Note 8.3: Remuneration of executives 78Note 8.4: Related parties 79Note 8.5: Remuneration of auditors 80Note 8.6: Events occurring after the balance sheet date 81Note 8.7: Jointly controlled operations 81Note 8.8: Economic dependency 81Note 8.9: AASBs issued that are not yet effective 82


COBRAM DISTRICT HEALTHCOMPREHENSIVE OPERATING STATEMENTFOR THE FINANCIAL YEAR ENDED 30 JUNE 2019

TOTAL TOTALNote 2019 2018

$'000 $'000Income from TransactionsOperating Activities 2.1 22,229 20,203 Non-operating Activities 2.1 99 49 Total Income from Transactions 22,328 20,252

Expenses from TransactionsEmployee Expenses 3.1 (14,064) (14,193) Supplies and Consumables 3.1 (1,720) (1,604) Finance Costs 3.1 (1) (1) Depreciation and Amortisation 3.1 (1,561) (1,411) Other Operating Expenses 3.1 (2,450) (2,525) Total Expenses from Transactions (19,796) (19,734)

Net Result from Transactions - Net Operating Balance 2,532 518

Other Economic Flows Included in Net ResultNet gain/(loss) on non-financial assets 3.2 20 4 Net gain/(loss) on financial instruments 3.2 (5) (62) Other Gain/(Loss) from Other Economic Flows 3.2 43 (11) Total Other Economic Flows Included in Net Result 58 (69)

Net Result for the year 2,590 449

Other Comprehensive IncomeItems that will not be classified to Net ResultChanges in Property, Plant & Equipment Revaluation Surplus 4.1b 2,261 1,445 Total Other Comprehensive Income 2,261 1,445

COMPREHENSIVE RESULT 4,851 1,894

This Statement should be read in conjunction with the accompanying notes.


COBRAM DISTRICT HEALTHBALANCE SHEETAS AT 30 JUNE 2019

Note TOTAL TOTAL2019 2018$'000 $'000

Current AssetsCash and Cash Equivalents 6.2 5,873 3,305 Receivables 5.1 741 802 Inventories 23 23 Prepayments 164 70

Total Current Assets 6,801 4,200

Non-Current AssetsReceivables 5.1 293 286 Property, Plant and Equipment 4.1 20,397 18,242 Intangible Assets 4.3 31 38

Total Non-Current Assets 20,721 18,566

TOTAL ASSETS 27,522 22,766

Current LiabilitiesPayables 5.5 1,430 1,354 Borrowings 6.1 17 17 Provisions 3.3 2,272 2,027 Other Current liabilities 5.3 1,423 749

Total Current Liabilities 5,142 4,147

Non-Current LiabilitiesBorrowings 6.1 14 992 Provisions 3.3 261 373

Total Non-Current Liabilities 275 1,365

TOTAL LIABILITIES 5,417 5,512

NET ASSETS 22,105 17,254

EQUITYProperty, Plant and Equipment Revaluation Surplus 4.1f 15,496 13,235 Contributed Capital 7,017 7,017 Accumulated Surpluses/(Deficits) (408) (2,998)

TOTAL EQUITY 22,105 17,254

Commitments 6.3Contingent Assets and Contingent Liabilities 7.2



COBRAM DISTRICT HEALTHSTATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 30 JUNE 2019

Property, Plant Accumulatedand Equipment Contributed Surpluses/

Revaluation Capital (Deficits) TotalSurplus$'000 $'000 $'000 $'000

Balance at 1 July 2017 11,790 7,017 (3,447) 15,360

Net result for the year - - 449 449 Other comprehensive income for the year 1,445 - - 1,445

Balance at 30 June 2018 13,235 7,017 (2,998) 17,254

Net result for the year - - 2,590 2,590 Other comprehensive income for the year 2,261 - - 2,261

Balance at 30 June 2019 15,496 7,017 (408) 22,105



COBRAM DISTRICT HEALTHCASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019

Note TOTAL TOTAL2019 2018$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 11,348 11,949 Capital Grants from Government 2,749 578 Patient and Resident Fees Received 2,152 1,935 Private Practice Fees Received 3,445 4,140 Donations and Bequests Received 47 68 GST (Paid to)/Received from ATO 12 241 Interest Received 101 51 Other Receipts 1,672 1,646 Total Receipts 21,526 20,608

Employee Expenses Paid (11,567) (11,266) Non Salary Labour Costs (2,262) (3,347) Payments for Supplies and Consumables (1,720) (1,604) Finance Costs (1) (1) Fuel, Light & Power (385) (338) Repairs and Maintenance (280) (288) Other Payments (1,986) (1,651) Total Payments (18,201) (18,495)

NET CASH FLOW FROM / (USED IN) OPERATING ACTIVITIES 8.1 3,325 2,113

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Intangible Assets (9) (34) Purchase of Non-Financial Assets (1,455) (1,005) Proceeds from Sale of Non-Financial Assets 36 14

NET CASH FLOW FROM /(USED IN) INVESTING ACTIVITIES (1,428) (1,025)

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of Borrowings (3) (28) Proceeds from Borrowings - 3 Net Receipt of Accommodation Deposits and Monies in Trust 674 258

NET CASH FLOW FROM /(USED IN) FINANCING ACTIVITIES 671 233

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS HELD 2,568 1,321

CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 3,305 1,984

CASH AND CASH EQUIVALENTS AT END OFOF FINANCIAL YEAR 6.2 5,873 3,305

This statement should be read in conjunction with the accompanying notes.

COBRAM DISTRICT HEALTHSTATEMENT OF CHANGES IN EQUITYFOR THE FINANCIAL YEAR ENDED 30 JUNE 2019

Property, Plant Accumulatedand Equipment Contributed Surpluses/

Revaluation Capital (Deficits) TotalSurplus$'000 $'000 $'000 $'000

Balance at 1 July 2017 11,790 7,017 (3,447) 15,360

Net result for the year - - 449 449 Other comprehensive income for the year 1,445 - - 1,445

Balance at 30 June 2018 13,235 7,017 (2,998) 17,254

Net result for the year - - 2,590 2,590 Other comprehensive income for the year 2,261 - - 2,261

Balance at 30 June 2019 15,496 7,017 (408) 22,105



Cobram District HealthNotes to the Financial Statements

30 June 2019

BASIS OF PREPARATIONThe financial statements are prepared in accordance with Australian Accounting Standards and relevant FRDs.

These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basisis specifically disclosed in the note associated with the item measured on a different basis.

The accrual basis of accounting has been applied in preparing these financial statements, whereby assets, liabilities, equity, incomeand expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of compliance

(b) Reporting Entity The financial statements include all the controlled activities of Cobram District Health.

Its principal address is: 12 Cooper StreetCobram Victoria 3714

A description of the nature of Cobram District Health's operations and its principal activities is included in the report of operations, whichdoes not form part of these financial statements.

(c) Basis of accounting preparation and measurementAccounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies theconcepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies have been applied in preparing the financial statements for the year ended 30 June 2019,and the comparative information presented in these financial statements for the year ended 30 June 2018.

The financial statements are prepared on a going concern basis (refer note 8.8 Economic Dependency).

These financial statements are presented in Australian Dollars, the functional and presentation currency of Cobram District Health.

All amounts shown in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.Minor discrepancies in tables between totals and sum of components are due to rounding.

Cobram District Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and CapitalFunds.

The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting.Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is, they are recognised in the reporting period to which they relate,regardless of when cash is received or paid.

These annual financial statements represent the audited general purpose financial statements for Cobram District Health (ABN 22 697 331 144) for the year ended 30 June 2019. The report provides users with information about Cobram District Healths’ stewardship of resources entrusted to it.

These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable AASBs, which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements .

The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Assistant Treasurer.

Cobram District Health is a not-for profit entity and therefore applies the additional AUS paragraphs applicable to “not-for-profit” Health Services under the AASBs.



30 June 2019

NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)(c) Basis of accounting preparation and measurement (Continued)

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The estimates andassociated assumptions are based on professional judgements derived from historical experience and variousother 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 AASBs that have significant effects on the financial statements and estimates relate to:

• The fair value of land, buildings and plant and equipment (refer to Note 4.1 Property, Plant and Equipment); and• Employee benefit provisions are based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 3.3 Employee Benefits in the Balance Sheet);

Goods and Services Tax (GST)Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the Balance Sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activitieswhich are recoverable from, or payable to the ATO, are presented as operating cash flow.

Commitments and contingent assets and liabilities are presented on a gross basis.

(d) Jointly Controlled OperationJoint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

In respect of any interest in joint operations, Cobram District Health recognises in the financial statements:

• its assets, including its share of any assets held jointly; • any liabilities including its share of liabilities that it had incurred; • its revenue from the sale of its share of the output from the joint operation;• its share of the revenue from the sale of the output by the operation; and• its expenses, including its share of any expenses incurred jointly.

Cobram District Health is a Member of the Hume Region Health Alliance Joint Venture and retains joint control over the arrangement,which it has classified as a joint operation (refer to Note 8.7 Jointly Controlled Operations)

(e) Equity Contributed Capital Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Cobram District Health.

Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. Transfers of net liabilities arising from administrative restructurings are treated as distributions to owners.

Other transfers that are in the nature of contributions or distributions or that have been designated as contributed capital are also treated as contributed capital.


30 June 2019

BASIS OF PREPARATIONThe financial statements are prepared in accordance with Australian Accounting Standards and relevant FRDs.

These financial statements are in Australian dollars and the historical cost convention is used unless a different measurement basisis specifically disclosed in the note associated with the item measured on a different basis.

The accrual basis of accounting has been applied in preparing these financial statements, whereby assets, liabilities, equity, incomeand expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of compliance

(b) Reporting Entity The financial statements include all the controlled activities of Cobram District Health.

Its principal address is: 12 Cooper StreetCobram Victoria 3714

A description of the nature of Cobram District Health's operations and its principal activities is included in the report of operations, whichdoes not form part of these financial statements.

(c) Basis of accounting preparation and measurementAccounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies theconcepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies have been applied in preparing the financial statements for the year ended 30 June 2019,and the comparative information presented in these financial statements for the year ended 30 June 2018.

The financial statements are prepared on a going concern basis (refer note 8.8 Economic Dependency).

These financial statements are presented in Australian Dollars, the functional and presentation currency of Cobram District Health.

All amounts shown in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated.Minor discrepancies in tables between totals and sum of components are due to rounding.

Cobram District Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and CapitalFunds.

The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting.Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is, they are recognised in the reporting period to which they relate,regardless of when cash is received or paid.

These annual financial statements represent the audited general purpose financial statements for Cobram District Health (ABN 22 697 331 144) for the year ended 30 June 2019. The report provides users with information about Cobram District Healths’ stewardship of resources entrusted to it.

These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable AASBs, which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements .

The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Assistant Treasurer.

Cobram District Health is a not-for profit entity and therefore applies the additional AUS paragraphs applicable to “not-for-profit” Health Services under the AASBs.



30 June 2019

NOTE 2: FUNDING DELIVERY OF OUR SERVICES

Cobram District Health's overall objective is to provide quality health services that support and enhance the wellbeing of all Victorians. Cobram District Health is predominantly funded by accrual based grant funding for theprovision of outputs. Cobram District Health also receives income from the supply of services.

Structure2.1 Income from Transactions



30 June 2019

NOTE 2.1: INCOME FROM TRANSACTIONSTOTAL TOTAL2019 2018$'000 $'000

Government Grants - Operating 11,267 11,546 Government Grants - Capital 3,724 578 Other Capital Purpose Income 47 231

24 52 Patient and Resident Fees 2,211 1,760 Private Practice Fees 3,445 4,115 Commercial Activities 834 1,025 Other Revenue from Operating Activities (including non-capital donations) 677 896

Total Income from Operating Activities 22,229 20,203

Interest 99 34 Capital Interest - 15

Total Income from Non-Operating Activities 99 49

Total Income from Transactions 22,328 20,252

Indirect Contributions by Department of Health and Human Services


30 June 2019

NOTE 2: FUNDING DELIVERY OF OUR SERVICES

Cobram District Health's overall objective is to provide quality health services that support and enhance the wellbeing of all Victorians. Cobram District Health is predominantly funded by accrual based grant funding for theprovision of outputs. Cobram District Health also receives income from the supply of services.

Structure2.1 Income from Transactions



30 June 2019

NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE (Continued)Revenue RecognitionIncome is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that theeconomic benefits will flow to Cobram District Health and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance.

Amounts disclosed as revenue are, where applicable, net of returns, allowances, duties and taxes.

Government Grants and Other Transfers of Income (other than contributions by owners)In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributionsby owners) are recognised as income when Cobram District Health gains control of the underlying assets irrespective ofwhether conditions are imposed on Cobram District Health's use of the contributions.

The Department of Health and Human Services makes certain payments on behalf of Cobram District Health.These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue.

Contributions are deferred as income in advance when Cobram District Health has a present obligation to repay them and the present obligation can be reliably measured.

Non-cash contributions from the Department of Health and Human ServicesThe Department of Health and Human Services makes some payments on behalf of health services as follows:

• The Victorian Managed Insurance Authority non-medical indemnity insurance payments are recognisedas revenue following advice from the Department of Health and Human Services

• Long Service Leave (LSL) revenue is recognised upon finalisation of movements in LSL liability inline with the long service leave funding arrangements set out in the relevant Department of Health andHuman Services Hospital Circular

Patient FeesPatient and resident fees are recognised as revenue on an accrual basis.

Private Practice FeesPrivate Practice fees are recognised as revenue at the time invoices are raised.

Revenue from Commercial ActivitiesRevenue from commercial activities such as provision of meals to external users is recognised on an accrual basis.

Donations and Other BequestsDonations 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 RevenueInterest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset,which allocates interest over the relevant period.

Sale of investmentsThe gain / (loss) on the sale of investments is recognised when the investment is realised.

Other IncomeOther income includes recoveries for salaries and wages, sundry sales and minor facility charges.



30 June 2019

NOTE 3: THE COST OF DELIVERING SERVICES

This section provides an account of the expenses incurred by Cobram District Health in delivering services and outputs. In Section 2, the funds that enable the provision of services were disclosed and in this note the cost associated with provisionof services are recorded.

Structure3.1 Expenses from Transactions3.2 Other Economic Flows 3.3 Employee benefits in the Balance Sheet 3.4 Superannuation


30 June 2019

NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE (Continued)Revenue RecognitionIncome is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that theeconomic benefits will flow to Cobram District Health and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance.

Amounts disclosed as revenue are, where applicable, net of returns, allowances, duties and taxes.

Government Grants and Other Transfers of Income (other than contributions by owners)In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributionsby owners) are recognised as income when Cobram District Health gains control of the underlying assets irrespective ofwhether conditions are imposed on Cobram District Health's use of the contributions.

The Department of Health and Human Services makes certain payments on behalf of Cobram District Health.These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue.

Contributions are deferred as income in advance when Cobram District Health has a present obligation to repay them and the present obligation can be reliably measured.

Non-cash contributions from the Department of Health and Human ServicesThe Department of Health and Human Services makes some payments on behalf of health services as follows:

• The Victorian Managed Insurance Authority non-medical indemnity insurance payments are recognisedas revenue following advice from the Department of Health and Human Services

• Long Service Leave (LSL) revenue is recognised upon finalisation of movements in LSL liability inline with the long service leave funding arrangements set out in the relevant Department of Health andHuman Services Hospital Circular

Patient FeesPatient and resident fees are recognised as revenue on an accrual basis.

Private Practice FeesPrivate Practice fees are recognised as revenue at the time invoices are raised.

Revenue from Commercial ActivitiesRevenue from commercial activities such as provision of meals to external users is recognised on an accrual basis.

Donations and Other BequestsDonations 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 RevenueInterest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset,which allocates interest over the relevant period.

Sale of investmentsThe gain / (loss) on the sale of investments is recognised when the investment is realised.

Other IncomeOther income includes recoveries for salaries and wages, sundry sales and minor facility charges.



30 June 2019

NOTE 3.1: EXPENSES FROM TRANSACTIONS TOTAL TOTAL2019 2018$'000 $'000

Salaries and Wages 10,783 10,156 On-costs 934 910 Agency Expenses 66 64 Fee for Service Medical Officer Expenses 2,196 2,979 Workcover Premium 85 84 Total Employee Expenses 14,064 14,193

Drug Supplies 89 111 Medical & Surgical Supplies (including Prosthesis) 869 760 Diagnostic and Radiology Supplies 274 287 Other Supplies and Consumables 488 446

Total Supplies and Consumables 1,720 1,604

Finance Costs 1 1 Total Finance Costs 1 1

Fuel, Light, Power and Water 385 338 Repairs and Maintenance 280 288 Maintenance Contracts 97 93 Medical Indemnity Insurance 74 70 Other Administration Expenses 1,600 1,461 Expenditure for Capital Purposes 14 275

Total Other Operating Expenses 2,450 2,525

Depreciation and Amortisation (refer note 4.2) 1,561 1,411

Total Other Non-Operating Expenses 1,561 1,411

Total Expenses from Transactions 19,796 19,734

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Employee ExpensesEmployee expenses include:

• Salaries and wages (including fringe benefits tax, leave entitlements, termination payments);• On-costs;• Agency expenses;• Fee for service medical officer expenses;• Work cover premium.

Supplies and consumables Supplies and consumables - Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

Finance costs Finance costs include:

• finance charges in respect of finance leases which are recognised in accordance with AASB 117 Leases.

Other operating expensesOther operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

• Fuel, light and power • Repairs and maintencance• Other administrative expenses• Expenditure for capital purposes (represents expenditure related to the purchase of assets that are below the

capitalisation threshold).

The Department of Health and Human Services also makes certain payments on behalf of Cobram District Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue and also recording the related expense.

Non-operating expensesOther non-operating expenses generally represent expenditure for outside the normal operations such as depreciation and amortisation, and assets and services provided free of charge or for nominal consideration.



30 June 2019NOTE 3.2: OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT

TOTAL TOTAL2019 2018$'000 $'000

Net gain/(loss) on sale of non‑financial assetsNet gain on disposal of property plant and equipment 20 4 Total net gain/(loss) on non‑financial assets 20 4 Net gain/(loss) on financial instruments at amortised costImpairment of contracted receivables (5) (62) Total net gain/(loss) on financial instruments at amortised cost (5) (62) Other gains/(losses) from other economic flowsNet gain/(loss) arising from revaluation of long service liability 43 (11) Total other gains/(losses) from other economic flows 43 (11)

Total other gains/(losses) from economic flows 58 (69)

Net Gain / (Loss) on Non-Financial AssetsNet gain / (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

• Net gain/(loss) on disposal of Non-Financial Assets; and• Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal.

Net gain/ (loss) on financial instrumentsNet gain/ (loss) on financial instruments includes:

• Impairment of financial instruments at amortised cost.

Other gains/(losses) from other economic flowsOther gains/(losses) include:

• the revaluation of the present value of the long service leave liability due to changes in the bond rate movements, inflation rate movements and the impact of changes in probability factors.

Derecognition of financial liabilitiesA financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.


30 June 2019

NOTE 3.1: EXPENSES FROM TRANSACTIONS TOTAL TOTAL2019 2018$'000 $'000

Salaries and Wages 10,783 10,156 On-costs 934 910 Agency Expenses 66 64 Fee for Service Medical Officer Expenses 2,196 2,979 Workcover Premium 85 84 Total Employee Expenses 14,064 14,193

Drug Supplies 89 111 Medical & Surgical Supplies (including Prosthesis) 869 760 Diagnostic and Radiology Supplies 274 287 Other Supplies and Consumables 488 446

Total Supplies and Consumables 1,720 1,604

Finance Costs 1 1 Total Finance Costs 1 1

Fuel, Light, Power and Water 385 338 Repairs and Maintenance 280 288 Maintenance Contracts 97 93 Medical Indemnity Insurance 74 70 Other Administration Expenses 1,600 1,461 Expenditure for Capital Purposes 14 275

Total Other Operating Expenses 2,450 2,525

Depreciation and Amortisation (refer note 4.2) 1,561 1,411

Total Other Non-Operating Expenses 1,561 1,411

Total Expenses from Transactions 19,796 19,734

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Employee ExpensesEmployee expenses include:

• Salaries and wages (including fringe benefits tax, leave entitlements, termination payments);• On-costs;• Agency expenses;• Fee for service medical officer expenses;• Work cover premium.

Supplies and consumables Supplies and consumables - Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.

Finance costs Finance costs include:

• finance charges in respect of finance leases which are recognised in accordance with AASB 117 Leases.

Other operating expensesOther operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

• Fuel, light and power • Repairs and maintencance• Other administrative expenses• Expenditure for capital purposes (represents expenditure related to the purchase of assets that are below the

capitalisation threshold).

The Department of Health and Human Services also makes certain payments on behalf of Cobram District Health. These amounts have been brought to account as grants in determining the operating result for the year by recording them as revenue and also recording the related expense.

Non-operating expensesOther non-operating expenses generally represent expenditure for outside the normal operations such as depreciation and amortisation, and assets and services provided free of charge or for nominal consideration.



30 June 2019

NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET TOTAL TOTAL2019 2018

Current Provisions $'000 $'000Employee Benefits (i)

- unconditional and expected to be settled wholly within 12 months (ii) 886 770 - unconditional and expected to be settled wholly after 12 months (iii) 80 70 Long Service Leave - unconditional and expected to be settled wholly within 12 months (ii) 270 209 - unconditional and expected to be settled wholly after 12 months (iii) 798 756 Other - Accrued Days Off 19 27

2,053 1,832 Provisions related to Employee Benefit On-Costs - unconditional and expected to be settled wholly within 12 months (ii) 105 107 - unconditional and expected to be settled wholly after 12 months (iii) 114 88

219 195

Total Current Provisions 2,272 2,027

Non-Current ProvisionsEmployee Benefits (i) 236 337 Provisions related to Employee Benefit On-Costs 25 36

Total Non-Current Provisions 261 373

Total Provisions 2,533 2,400 Notes:(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.(ii) The amounts disclosed are nominal amounts(iii) The amounts disclosed are discounted to present values

(a) Employee Benefits and Related On-CostsCurrent Employee Benefits and Related On-CostsAnnual Leave Entitlements 1,069 928 Accrued Days Off 21 30 Unconditional LSL Entitlement 1,182 1,069

2,272 2,027 261 373

Total Employee Benefits 2,533 2,400

(b) Movements in ProvisionsMovement in Long Service LeaveBalance at start of year 1,442 1,430 Provision made during the year - Revaluations (43) 11 - Expense Recognising Employee Service 328 253 Settlement made during the year (284) (252)

Balance at end of year 1,443 1,442

Employee Benefit RecognitionProvision is made for benefits accruing to employees in respect of accrued days off, annual leave and long service leave for services rendered to the reporting date as an expense during the period the services are delivered.

ProvisionsProvisions are recognised when Cobram District Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

Annual Leave

Non-Current Employee Benefits and related on-costsConditional Long Service Leave Entitlements (iii)



30 June 2019

NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET (CONTINUED)

Annual Leave and Accrued Days OffLiabilities for annual leave and accrued days off are all recognised in the provision for employee benefits as‘current liabilities’, because the health service 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 accrued days off are measured at:• Nominal value – if the health service expects to wholly settle within 12 months; or• Present value – if the health service does not expect to wholly settle within 12 months.

Long Service Leave (LSL)The liability for long service leave (LSL) is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. An unconditional right arises after a qualifying period.

The components of this current LSL liability are measured at:• nominal value – if Cobram District Health expects to wholly settle within 12 months; or• Present value – if Cobram District Health does not expect to wholly settle within 12 months.

Conditional LSL is disclosed as a non-current liability. Any gain or loss following revaluation of the present value of non-current LSLliability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in estimations e.g. bond ratemovements, inflation rate movements and changes in probability factors which are then recognised as other economic flows.

Termination benefitsTermination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment.

On-Costs related to employee expenseProvision for on-costs such as workers compensation and superannuation are recognised separately from provisions for employee benefits.

NOTE 3.4: SUPERANNUATION

Fund2019 2018 2019 2018$'000 $'000 $'000 $'000

Defined Benefit Plans: First State Super 13 14 - -

Defined Contribution Plans: First State Super 921 899 - - Total 934 913 - -

Employees of the Health Service are entitled to receive superannuation benefits and the Health Service contributes to both defined benefitand defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.

Defined contribution superannuation plansIn relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributionsthat are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defineddefined contribution superannuation plans are expensed when incurred.

Defined benefit superannuation plansThe amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents thecontributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff duringreporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan and are based upon actuarial advice.

Cobram District Health does not recognise any defined benefit liability in respect of the plans because the hospital has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State's defined benefits liabilities in its disclosure for administered items.

However superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the Health Service.

The name, details and amounts that have been expensed in relation to the major employee superannuation funds and contributions madeby Cobram District Health are disclosed above.

Outstanding Contributionsat Year End

Paid Contributionsfor the year


30 June 2019

NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET TOTAL TOTAL2019 2018

Current Provisions $'000 $'000Employee Benefits (i)

- unconditional and expected to be settled wholly within 12 months (ii) 886 770 - unconditional and expected to be settled wholly after 12 months (iii) 80 70 Long Service Leave - unconditional and expected to be settled wholly within 12 months (ii) 270 209 - unconditional and expected to be settled wholly after 12 months (iii) 798 756 Other - Accrued Days Off 19 27

2,053 1,832 Provisions related to Employee Benefit On-Costs - unconditional and expected to be settled wholly within 12 months (ii) 105 107 - unconditional and expected to be settled wholly after 12 months (iii) 114 88

219 195

Total Current Provisions 2,272 2,027

Non-Current ProvisionsEmployee Benefits (i) 236 337 Provisions related to Employee Benefit On-Costs 25 36

Total Non-Current Provisions 261 373

Total Provisions 2,533 2,400 Notes:(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not including on-costs.(ii) The amounts disclosed are nominal amounts(iii) The amounts disclosed are discounted to present values

(a) Employee Benefits and Related On-CostsCurrent Employee Benefits and Related On-CostsAnnual Leave Entitlements 1,069 928 Accrued Days Off 21 30 Unconditional LSL Entitlement 1,182 1,069

2,272 2,027 261 373

Total Employee Benefits 2,533 2,400

(b) Movements in ProvisionsMovement in Long Service LeaveBalance at start of year 1,442 1,430 Provision made during the year - Revaluations (43) 11 - Expense Recognising Employee Service 328 253 Settlement made during the year (284) (252)

Balance at end of year 1,443 1,442

Employee Benefit RecognitionProvision is made for benefits accruing to employees in respect of accrued days off, annual leave and long service leave for services rendered to the reporting date as an expense during the period the services are delivered.

ProvisionsProvisions are recognised when Cobram District Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.

Annual Leave

Non-Current Employee Benefits and related on-costsConditional Long Service Leave Entitlements (iii)



30 June 2019

NOTE 4: KEY ASSETS TO SUPPORT SERVICE DELIVERY

Cobram District Health controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They represent the key resources that have been entrusted to the hospital to be utilised for delivery of those outputs.

Structure4.1 Property, plant & equipment4.2 Depreciation and amortisation4.3 Intangibles



30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT TOTAL TOTAL(a) Gross carrying amount and accumulated depreciation 2019 2018

$'000 $'000Land - Land at Fair Value 1,324 1,209 Total Land 1,324 1,209

Buildings - Buildings Under Construction at Cost 214 122

- Leasehold Improvements at Cost 542 511 Less Accumulated Depreciation 542 511

- -

- Buildings at Fair Value 18,425 21,600 Less Accumulated Depreciation - 5,209

18,425 16,391

Total Buildings 18,639 16,513

Plant and Equipment - Plant and Equipment at Fair Value 760 751

Less Accumulated Depreciation 636 610 124 141

- Computers and Communication at Fair Value 313 310 Less Accumulated Depreciation 283 258

30 52

- Furniture and Fittings at Fair Value 44 38 Less Accumulated Depreciation 35 35

9 3

- Motor Vehicles at Fair Value 260 280 Less Accumulated Depreciation 209 206

51 74

Total Plant and Equipment 214 270

Medical Equipment-Medical Equipment at Fair Value 1,592 1,566

Less Accumulated Depreciation and Impairment 1,417 1,371 Total Medical Equipment 175 195

HRHA Plant and Equipment - Plant and Equipment at Fair Value 28 27

Less Accumulated Depreciation 13 7 15 20

Leased Assets - HRHA - Computers and Communication 104 90

Less Accumulated Depreciation 74 55 Total Leased Assets 30 35

Total HRHA Plant and Equipment 45 55

TOTAL 20,397 18,242


30 June 2019

NOTE 4: KEY ASSETS TO SUPPORT SERVICE DELIVERY

Cobram District Health controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They represent the key resources that have been entrusted to the hospital to be utilised for delivery of those outputs.

Structure4.1 Property, plant & equipment4.2 Depreciation and amortisation4.3 Intangibles



30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)(b) Reconciliations of the carrying amounts of each class of asset

Land Under Buildings Plant & Medical HRHA TotalConstruction Equipment Equipment Plant & Equip

$'000 $'000 $'000 $'000 $'000 $'000 $'000Balance at 1 July 2017 1,209 420 14,885 345 215 59 17,133

Additions - 975 - 49 32 - 1,056 Revaluation Increments - - 1,445 - - - 1,445 Disposals - (11) - (7) - - (18) Transfers between classes - (1,262) 1,262 - - - - Hume Rural Health Alliance - - - - - 25 25 Depreciation and Amortisation (note 4.2) - - (1,201) (117) (52) (29) (1,399)

Balance at 1 July 2018 1,209 122 16,391 270 195 55 18,242

Additions - 92 1,261 57 26 15 1,451 Hume Rural Health Alliance - - - - - 4 4 Revaluation Increments/(Decrements) 115 - 2,146 - - - 2,261 Disposals - - - (16) - - (16) Depreciation and Amortisation (note 4.2) - - (1,373) (97) (46) (29) (1,545)

Balance at 30 June 2019 1,324 214 18,425 214 175 45 20,397

Land and buildings carried at valuationThe Valuer-General Victoria undertook to re-value all of Cobram District Health's owned and leased land and buildings to determine their fair value. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments. The effective date of the valuation is 30 June 2019.

(c) Fair value measurement hierarchy for assets

Level 1 (i) Level 2 (i) Level 3 (i)$'000 $'000 $'000 $'000

Land at fair valueSpecialised land 1,324 - - 1,324 Total of land at fair value 1,324 - - 1,324

Buildings at fair valueSpecialised buildings 18,425 - - 18,425 Total of building at fair value 18,425 - - 18,425

Plant & Equipment at Fair Value 124 - - 124

Computers and Communication at Fair Value 30 - - 30

Furniture and Fittings at Fair Value 9 - - 9

Motor Vehicles at Fair Value 51 - - 51

Medical Equipment at Fair Value 175 - - 175

HRHA Plant & Equipment at Fair Value 15 - - 15

HRHA Leased assets at Fair Value 30 - - 30

Total of plant, equipment and vehicles at fair value 434 - - 434

20,183 - - 20,183 Note(i) Classified in accordance with the fair value hierarchy. There have been no transfers between levels during the period.

Carrying amount as at 30 June 2019

Fair value measurement at end of reporting period using:



30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)(c) Fair value measurement hierarchy for assets (Continued)


Land at fair valueSpecialised land 1,209 - 1,209 Total of land at fair value 1,209 - - 1,209














30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)(b) Reconciliations of the carrying amounts of each class of asset

Land Under Buildings Plant & Medical HRHA TotalConstruction Equipment Equipment Plant & Equip

$'000 $'000 $'000 $'000 $'000 $'000 $'000Balance at 1 July 2017 1,209 420 14,885 345 215 59 17,133

Additions - 975 - 49 32 - 1,056 Revaluation Increments - - 1,445 - - - 1,445 Disposals - (11) - (7) - - (18) Transfers between classes - (1,262) 1,262 - - - - Hume Rural Health Alliance - - - - - 25 25 Depreciation and Amortisation (note 4.2) - - (1,201) (117) (52) (29) (1,399)

Balance at 1 July 2018 1,209 122 16,391 270 195 55 18,242

Additions - 92 1,261 57 26 15 1,451 Hume Rural Health Alliance - - - - - 4 4 Revaluation Increments/(Decrements) 115 - 2,146 - - - 2,261 Disposals - - - (16) - - (16) Depreciation and Amortisation (note 4.2) - - (1,373) (97) (46) (29) (1,545)

Balance at 30 June 2019 1,324 214 18,425 214 175 45 20,397

Land and buildings carried at valuationThe Valuer-General Victoria undertook to re-value all of Cobram District Health's owned and leased land and buildings to determine their fair value. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments. The effective date of the valuation is 30 June 2019.

(c) Fair value measurement hierarchy for assets


Land at fair valueSpecialised land 1,324 - - 1,324 Total of land at fair value 1,324 - - 1,324















30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)(d) Reconciliation of Level 3 fair value

Under Plant and Medical HRHALand Construction Buildings Equipment Equipment Assets

30-Jun-19 $'000 $'000 $'000 $'000 $'000 $'000

Opening Balance 1,209 122 16,391 270 195 55 Purchases (sales) - 92 1,261 41 26 19 Transfers in (out) of Level 3 - - - - - -

Gains or losses recognised in net result- Depreciation - - (1,373) (97) (46) (29) Subtotal 1,209 214 16,279 214 175 45

Items recognised in other comprehensive income- Revaluation 115 - 2,146 - - - Subtotal 115 - 2,146 - - Closing Balance 1,324 214 18,425 214 175 45

Plant and Medical Leased Land Buildings Buildings Equipment Equipment Assets

30-Jun-18 $'000 $'000 $'000 $'000 $'000 $'000

Opening Balance 1,209 420 14,885 345 215 59 Purchases (sales) - (298) 1,262 42 32 25 Transfers in (out) of Level 3 - - - - - -


Items recognised in other comprehensive income- Revaluation - - 1,445 - - - Subtotal - - 1,445 - Closing Balance 1,209 122 16,391 270 195 55

(e) Fair Value Determination

- Land subject to restriction as to use Level 3 Market approach Community Service and/or sale Obligation Adjustments (20%)- Land in areas where there is not an active market

Specialised Buildings Specialised buildings with limited Level 3 Depreciated replacement - Cost per square metre alternative uses and/or substantial cost approach - Useful life customisation eg. Hospitals

Vehicles Level 3 - Cost per unitcost approach - Useful life

Plant and equipment Specialised items with limited Level 3 Depreciated replacement - Cost per unitalternative uses and/or substantial cost approach - Useful life cutomisation

(f) Property, Plant and Equipment Revaluation Surplus TOTAL TOTAL2019 2018

Property, Plant and Equipment Revaluation Surplus $'000 $'000Balance at the beginning of the reporting period 13,235 11,790 Revaluation Increment- Land 115 - - Buildings 2,146 1,445 Balance at the end of the reporting period* 15,496 13,235

*Represented by:- Land 868 753 - Buildings 14,628 12,482

15,496 13,235

Asset Class Examples of types assets Expected fair value level Likely valuation approach

Significant inputs (Level 3 only)

Specialised land

If there is an active resale market

(Crown/Freehold)

Depreciated replacement



30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)Initial RecognitionItems of property, plant and equipment are measured initially at cost and subsequently revalued at fair value less accumulateddepreciation and impairment loss. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government change are transferred at their carrying amounts.

The cost of 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.

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 physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset.

Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best uses.

Land and buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and accumulated impairment loss.

Revaluations of Non-current Physical AssetsNon-Current physical assets are measured at fair value and are revalued in accordance with FRD 103H Non-currentphysical assets. This revaluation process normally occurs every five years, based upon the asset's GovernmentPurpose Classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset's carrying value and fair value.

Revaluation increments are recognised in 'Other Comprehensive Income' and are credited directly to the asset revaluation surplus except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result.

Revaluation decrements are recognised in 'Other Comprehensive Income' to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.

Revaluation surplus is not transferred to accumulated funds on de-recognition of the relevant asset, except where an assetis transferred via contributed capital.

In accordance with FRD 103H Cobram District Health's non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.

Fair value measurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Valuation hierarchyHealth Services need to use valuation techniques that are appropriate for the circumstances and where there is sufficient data available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy.

Identifying unobservable inputs (level 3) fair value measurementsLevel 3 fair value inputs are unobservable valuation inputs for an asset or liability. These inputs require significant judgement and assumptions in deriving fair value for both financial and non-financial assets.

Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, i.e., an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.


30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)(d) Reconciliation of Level 3 fair value

Under Plant and Medical HRHALand Construction Buildings Equipment Equipment Assets

30-Jun-19 $'000 $'000 $'000 $'000 $'000 $'000

Opening Balance 1,209 122 16,391 270 195 55 Purchases (sales) - 92 1,261 41 26 19 Transfers in (out) of Level 3 - - - - - -


Items recognised in other comprehensive income- Revaluation 115 - 2,146 - - - Subtotal 115 - 2,146 - - Closing Balance 1,324 214 18,425 214 175 45

Plant and Medical Leased Land Buildings Buildings Equipment Equipment Assets

30-Jun-18 $'000 $'000 $'000 $'000 $'000 $'000

Opening Balance 1,209 420 14,885 345 215 59 Purchases (sales) - (298) 1,262 42 32 25 Transfers in (out) of Level 3 - - - - - -


Items recognised in other comprehensive income- Revaluation - - 1,445 - - - Subtotal - - 1,445 - Closing Balance 1,209 122 16,391 270 195 55

(e) Fair Value Determination

- Land subject to restriction as to use Level 3 Market approach Community Service and/or sale Obligation Adjustments (20%)- Land in areas where there is not an active market

Specialised Buildings Specialised buildings with limited Level 3 Depreciated replacement - Cost per square metre alternative uses and/or substantial cost approach - Useful life customisation eg. Hospitals

Vehicles Level 3 - Cost per unitcost approach - Useful life

Plant and equipment Specialised items with limited Level 3 Depreciated replacement - Cost per unitalternative uses and/or substantial cost approach - Useful life cutomisation

(f) Property, Plant and Equipment Revaluation Surplus TOTAL TOTAL2019 2018

Property, Plant and Equipment Revaluation Surplus $'000 $'000Balance at the beginning of the reporting period 13,235 11,790 Revaluation Increment- Land 115 - - Buildings 2,146 1,445 Balance at the end of the reporting period* 15,496 13,235

*Represented by:- Land 868 753 - Buildings 14,628 12,482

15,496 13,235

Asset Class Examples of types assets Expected fair value level Likely valuation approach

Significant inputs (Level 3 only)

Specialised land

If there is an active resale market

(Crown/Freehold)

Depreciated replacement



30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)Consideration of highest and best use (HBU) for non-financial physical assetsJudgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions on the use and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements.

In accordance with paragraph AASB 13.29, Health Services can assume the current use of a non-financial physical asset is its HBU unless market or other factors suggest that a different use by market participants would maximise the value of the asset.

Specialised land and specialised buildingsThe market approach is also used for specialised land and specialised buildings although it is adjusted for the community service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore these assets are classified as Level 3 under the market based direct comparison approach.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.

For Cobram District Health, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialisedbuildings are classified as Level 3 for fair value measurements.

An independent valuation of Cobram District Health’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2019.

VehiclesThe Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation ratesduring 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 equipmentPlant and equipment (including medical equipment, computers and communication equipment and furniture and fittings) are heldat carrying amount (depreciated cost). When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.

There were no changes in valuation techniques throughout the period to 30 June 2019.

For all assets measured at fair value, the current use is considered the highest and best use.



30 June 2019

NOTE 4.2: DEPRECIATION AND AMORTISATION TOTAL TOTAL2019 2018$'000 $'000

DepreciationBuildings 1,342 1,167 Leased Buildings 31 34 Plant and Equipment - Plant 13 16 - Non Medical Equipment 12 10 - Motor Vehicles 45 58 - Computers and Communications 26 32 - Furniture and Fittings 1 1 - Medical Equipment 46 52 - Hume Rural Health Alliance 29 29

Total Depreciation 1,545 1,399

AmortisationSoftware 11 8 Hume Rural Health Alliance - Amortisation 5 4 Total Amortisation 16 12

TOTAL DEPRECIATION AND AMORTISATION 1,561 1,411

DepreciationAll infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful livesare depreciated (i.e. excludes land assets held for sale, and investment properties). Depreciation is generally calculated on a straight-line basis at rates that allocate the asset’s value, less any estimated residual value over its estimated useful life (refer AASB 116 Property, Plant and Equipment ).

The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.

BuildingsPlant & EquipmentMedical EquipmentComputers and CommunicationMotor VehiclesIntangible assets

As part of the buildings valuation, building values were separated into components and each component assessed for its usefullife which is represented above.

10 years3 to 4 years

10 years3 to 4 years

3 years7 to 10 years3 to 7 years

3 years

3 to 7 years7 to 10 years

2019 20183 to 40 years3 to 40 years


30 June 2019

NOTE 4.1: PROPERTY, PLANT AND EQUIPMENT (Continued)Consideration of highest and best use (HBU) for non-financial physical assetsJudgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions on the use and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements.

In accordance with paragraph AASB 13.29, Health Services can assume the current use of a non-financial physical asset is its HBU unless market or other factors suggest that a different use by market participants would maximise the value of the asset.

Specialised land and specialised buildingsThe market approach is also used for specialised land and specialised buildings although it is adjusted for the community service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore these assets are classified as Level 3 under the market based direct comparison approach.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.

For Cobram District Health, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialisedbuildings are classified as Level 3 for fair value measurements.

An independent valuation of Cobram District Health’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2019.

VehiclesThe Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation ratesduring 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 equipmentPlant and equipment (including medical equipment, computers and communication equipment and furniture and fittings) are heldat carrying amount (depreciated cost). When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.

There were no changes in valuation techniques throughout the period to 30 June 2019.

For all assets measured at fair value, the current use is considered the highest and best use.



30 June 2019

NOTE 4.3: INTANGIBLE ASSETS TOTAL TOTAL2019 2018$'000 $'000

Software 35 35 Less Accumulated Amortisation (28) (17) Total Software 7 18

Intangible Assets - Hume Rural Health Alliance 28 28 Less Accumulated Amortisation (4) (8) Total HRHA Software 24 20 TOTAL INTANGIBLE ASSETS 31 38

Reconciliation of the carrying amount of intangible assets at the beginning and end of the previous and current financial year:Software HRHA Total

$'000 $'000 $'000Balance at 1 July 2017 16 67 83

Additions 10 34 44 HRHA % Share Adjustment - (1) (1) Software WIP Written Off - (76) (76) Amortisation (i) (8) (4) (12)

Balance at 1 July 2018 18 20 38

Additions/(Disposals) - 9 9 HRHA % Share Adjustment - - - Software WIP Written Off - - - Amortisation (i) (11) (5) (16)

Balance at 30 June 2019 7 24 31

Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, and computersoftware.

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost lessaccumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when itis expected that additional future economic benefits will flow to Cobram District Health Service.

Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset's useful life.



30 June 2019

NOTE 5: OTHER ASSETS AND LIABILITIES

This section sets out those assets and liabilities that arose from the hospital's operations.

Structure5.1 Receivables5.2 Payables5.3 Other liabilities


30 June 2019

NOTE 4.3: INTANGIBLE ASSETS TOTAL TOTAL2019 2018$'000 $'000

Software 35 35 Less Accumulated Amortisation (28) (17) Total Software 7 18

Intangible Assets - Hume Rural Health Alliance 28 28 Less Accumulated Amortisation (4) (8) Total HRHA Software 24 20 TOTAL INTANGIBLE ASSETS 31 38

Reconciliation of the carrying amount of intangible assets at the beginning and end of the previous and current financial year:Software HRHA Total

$'000 $'000 $'000Balance at 1 July 2017 16 67 83

Additions 10 34 44 HRHA % Share Adjustment - (1) (1) Software WIP Written Off - (76) (76) Amortisation (i) (8) (4) (12)

Balance at 1 July 2018 18 20 38

Additions/(Disposals) - 9 9 HRHA % Share Adjustment - - - Software WIP Written Off - - - Amortisation (i) (11) (5) (16)

Balance at 30 June 2019 7 24 31

Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, and computersoftware.

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost lessaccumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when itis expected that additional future economic benefits will flow to Cobram District Health Service.

Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset's useful life.



30 June 2019

NOTE 5.1: RECEIVABLES TOTAL TOTAL2019 2018

CURRENT $'000 $'000ContractualTrade Debtors 110 133 Patient Fees and Resident Debtors 406 422 Accrued Investment Income - 2 Hume Rural Health Alliance Receivables 55 157 Accrued Revenue - Other 69 105

Less Allowance for impairment losses of contractual receivables Patient Fees - (75) Trade Debtors - -

640 744 StatutoryAccrued Revenue - Department of Health & Human Services 47 - GST Receivable - Health Service 54 58

101 58 TOTAL CURRENT RECEIVABLES 741 802

NON CURRENTStatutoryLong Service Leave - Department of Health and Human Services 293 286 TOTAL NON-CURRENT RECEIVABLES 293 286

TOTAL RECEIVABLES 1,034 1,088

(a) Movement in the allowance for doubtful debtsBalance at beginning of the year 75 53 Amounts written off during the year - - Amounts recovered during the year - - Increase/(decrease) in allowance recognised in net result (75) 22

Balance at end of year - 75

Receivables consist of:• Contractual receivables, which consists of debtors in relation to goods and services and accrued investment income. These receivables

are classified as financial instruments and categorised as ‘financial assets at amortised costs’. They are initially recognised at fair value plus any directly attributable transaction costs. The Health Service holds the contractual receivables with the objective to collect the contractual cash flows and therefore subsequently measured at amortised cost using the effective interest method, less any impairment.

• Statutory receivables, which predominantly includes amounts owing from the Victorian Government and Goods and Services Tax (GST) input tax credits recoverable. Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments for disclosure purposes. The Health Service applies AASB 9 for initial measurement of the statutory receivables and as a result statutory receivables are initially recognised at fair value plus any directly attributable transaction cost.

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

The Health Service is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates, management consider the credit quality of trade receivables that are not past due or impaired to be good.

Impairment losses of contractual receivablesRefer to Note 7.1 ( c) Contractual receivables at amortised costs for the Health Service’s contractual impairment losses.



30 June 2019

NOTE 5.2: PAYABLES TOTAL TOTAL2019 2018$'000 $'000

CURRENTContractualTrade Creditors (i) 579 622 Accrued Expenses 83 107 Accrued Salaries and Wages 410 336 Hume Rural Health Alliance Payables 150 202

1,222 1,267 StatutoryGST Payable 8 - Amounts payable to Government - GST, PAYG & FBT - 15 Department of Health and Human Services 200 72

208 87

TOTAL 1,430 1,354

Payables consist of:• contractual payables, classified as finanical instruments ans measured at amortised cost. Accounts payable represent liabilities

for goods and services provided to Cobram District Health prior to the end of the financial year that are unpaid; and• statutory payables, that are recognised and measured similiarly to contractual payables, but are not classified as financial instruments

and not included in the category of financial liabilities at amortised cost, because they do not arise from contracts.

Maturity analysis of payablesPlease refer to Note 7.1(b) for the maturity analysis of payables.

TOTAL TOTALNOTE 5.3: OTHER LIABILITIES 2019 2018

$'000 $'000CURRENTMonies Held in Trust* - Medical Clinic Trust 9 - - Home Care Packages 295 178 - Accommodation Bonds (Refundable Entrance Fees)* 1,119 571

TOTAL CURRENT 1,423 749

* Total Monies Held in TrustRepresented by the following assets:Cash Assets (refer to Note 6.2) 1,423 749

TOTAL OTHER LIABILITIES 1,423 749

(i) The average credit period is 45 days.


30 June 2019

NOTE 5.1: RECEIVABLES TOTAL TOTAL2019 2018

CURRENT $'000 $'000ContractualTrade Debtors 110 133 Patient Fees and Resident Debtors 406 422 Accrued Investment Income - 2 Hume Rural Health Alliance Receivables 55 157 Accrued Revenue - Other 69 105

Less Allowance for impairment losses of contractual receivables Patient Fees - (75) Trade Debtors - -

640 744 StatutoryAccrued Revenue - Department of Health & Human Services 47 - GST Receivable - Health Service 54 58

101 58 TOTAL CURRENT RECEIVABLES 741 802

NON CURRENTStatutoryLong Service Leave - Department of Health and Human Services 293 286 TOTAL NON-CURRENT RECEIVABLES 293 286

TOTAL RECEIVABLES 1,034 1,088

(a) Movement in the allowance for doubtful debtsBalance at beginning of the year 75 53 Amounts written off during the year - - Amounts recovered during the year - - Increase/(decrease) in allowance recognised in net result (75) 22

Balance at end of year - 75

Receivables consist of:• Contractual receivables, which consists of debtors in relation to goods and services and accrued investment income. These receivables

are classified as financial instruments and categorised as ‘financial assets at amortised costs’. They are initially recognised at fair value plus any directly attributable transaction costs. The Health Service holds the contractual receivables with the objective to collect the contractual cash flows and therefore subsequently measured at amortised cost using the effective interest method, less any impairment.

• Statutory receivables, which predominantly includes amounts owing from the Victorian Government and Goods and Services Tax (GST) input tax credits recoverable. Statutory receivables do not arise from contracts and are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments for disclosure purposes. The Health Service applies AASB 9 for initial measurement of the statutory receivables and as a result statutory receivables are initially recognised at fair value plus any directly attributable transaction cost.

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

The Health Service is not exposed to any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various geographical areas. Based on historical information about customer default rates, management consider the credit quality of trade receivables that are not past due or impaired to be good.

Impairment losses of contractual receivablesRefer to Note 7.1 ( c) Contractual receivables at amortised costs for the Health Service’s contractual impairment losses.



30 June 2019

NOTE 6: HOW WE FINANCE OUR OPERATIONS

This section provides information on the sources of finance utilised by the hospital during its operations, along with interest expenses (the cost of borrowings) and other information related to financing activities of the hospital.

This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note: 7.1 provides additional, specific financial instrument disclosures.

Structure6.1 Borrowings6.2 Cash and cash equivalents6.3 Commitments for expenditure



30 June 2019

NOTE 6.1: BORROWINGS TOTAL TOTAL2019 2018$'000 $'000

Current Borrowings17 17

Total Current Borrowings 17 17

Non-Current Borrowings14 17

- 975 Total Non-Current Borrowings 14 992

Total Borrowings 31 1,009

Maturity analysis of borrowingsPlease refer to Note 7.1(c) for the maturity analysis of borrowings.

Defaults and breachesDuring the current and prior year, there were no defaults and breaches of any of the loans.

Borrowing RecognitionA lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.

NOTE 6.2: CASH AND CASH EQUIVALENTS TOTAL TOTAL2019 2018$'000 $'000

Cash at Bank 974 2,469 Short Term Deposits 4,621 613 Hume Rural Health Alliance 278 223

TOTAL CASH AND CASH EQUIVALENTS 5,873 3,305

Represented by:Cash for Health Service Operations 4,450 3,305 Cash for Monies Held in Trust - Cash at Bank 1,423 -

TOTAL CASH AND CASH EQUIVALENTS 5,873 3,305

Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highlyliquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cashcommitments 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 asliabilities on the balance sheet. The cash flow statement includes monies held in trust.

Finance Lease Liability

(i) They are unsecured loans which bear no interest.

Department of Health and Human Services (i)

Finance Lease Liability


30 June 2019

NOTE 6: HOW WE FINANCE OUR OPERATIONS

This section provides information on the sources of finance utilised by the hospital during its operations, along with interest expenses (the cost of borrowings) and other information related to financing activities of the hospital.

This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note: 7.1 provides additional, specific financial instrument disclosures.

Structure6.1 Borrowings6.2 Cash and cash equivalents6.3 Commitments for expenditure



30 June 2019

NOTE 6.3: COMMITMENTS FOR EXPENDITURE TOTAL TOTAL2019 2018$'000 $'000

(a) Commitments

Capital Expenditure CommitmentsPayable: Less than 1 YearProperty, Plant & Equipment 2,616 - Total Capital Expenditure Commitments 2,616 -

Total Commitments (inclusive of GST) 2,616 - less GST recoverable from the Australian Taxation Office (238) - Total Commitments (exclusive of GST) 2,378 -

All amounts shown in the commitments note are nominal amounts inclusive of GST.

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments aredisclosed at their nominal value and are inclusive of the goods and services tax ("GST") payable. In addition, where it isconsidered appropriate and provides additional relevant information to users, the net present values of significant individualprojects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.



30 June 2019

NOTE 7: RISKS, CONTINGENCIES & VALUATION UNCERTAINTIES

The hospital is exposed to risk from its activities and outside factors. In addition, it is often necessary to make judgements and estimates associated with recognition and measurement of items in the financial statements. This section sets out financial instrument specific information, (including exposures to financial risks) as well as those items that are contingent in nature or require a higher level of judgement to be applied, which for the hospital is related mainly to fair value determination.

Structure7.1 Financial instruments 7.2 Contingent assets and contingent liabilities


30 June 2019

NOTE 6.3: COMMITMENTS FOR EXPENDITURE TOTAL TOTAL2019 2018$'000 $'000

(a) Commitments

Capital Expenditure CommitmentsPayable: Less than 1 YearProperty, Plant & Equipment 2,616 - Total Capital Expenditure Commitments 2,616 -

Total Commitments (inclusive of GST) 2,616 - less GST recoverable from the Australian Taxation Office (238) - Total Commitments (exclusive of GST) 2,378 -

All amounts shown in the commitments note are nominal amounts inclusive of GST.

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments aredisclosed at their nominal value and are inclusive of the goods and services tax ("GST") payable. In addition, where it isconsidered appropriate and provides additional relevant information to users, the net present values of significant individualprojects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.



30 June 2019

NOTE 7.1: FINANCIAL INSTRUMENTSFinancial Risk Management Objectives and Policies

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of Cobram District Health's activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation.

(a) Categorisation of financial instruments

Financial Assets at Amortised Cost

Contractual financial assets -

loans and receivables

Contractual financial

liabilities at amortised cost Total

2019 $'000 $'000 $'000 $'000Contractual Financial Assets Cash and cash equivalents 5,873 - - 5,873 Receivables - Trade Debtors 110 - - 110 - Other Receivables 530 - - 530 Investments and Other Financial Assets - Term Deposits - - - - Total Financial Assets (i) 6,513 - - 6,513

Financial Liabilities Payables - - 1,222 1,222 Borrowings - - 48 48 Other Financial Liabilities - Accommodation Bonds - - 1,119 1,119 - Other - - 304 304 Total Financial Liabilities - - 2,693 2,693






2018 $'000 $'000 $'000 $'000Contractual Financial Assets Cash and cash equivalents - 3,305 - 3,305 Receivables - Trade Debtors - 133 - 133 - Other Receivables - 611 - 611 Investments and Other Financial Assets - Term Deposits - - - - Total Financial Assets (i) - 4,049 - 4,049

Financial Liabilities Payables - - 1,267 1,267 Borrowings - - 1,026 1,026 Other Financial Liabilities - Accommodation Bonds - - 571 571 - Other - - 178 178 Total Financial Liabilities - - 3,042 3,042

(i) The carrying amount excludes statutory receivables (i.e. GST Receivable and DHHS Receivable) and statutory payables (i.e. Revenuein advance and DHHS payable).



30 June 2019

NOTE 7.1: FINANCIAL INSTRUMENTS (Continued)

From 1 July 2018, the Health Service applies AASB 9 and classifies all of its financial assets based on the business model for managing the assets and the asset’s contractual terms.

Categories of financial assets under AASB 9

Financial assets at amortised costFinancial assets are measured at amortised costs if both of the following criteria are met and the assets are not designated as fair value through net result:• the assets are held by the Health Service to collect the contractual cash flows, and• the assets’ contractual terms give rise to cash flows that are solely payments of principal and interests.

These assets are initially recognised at fair value plus any directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method less any impairment.The Health Service recognises the following assets in this category:• cash and deposits;• receivables (excluding statutory receivables); and• term deposits.

Categories of financial assets previously under AASB 139

Loans and receivables and cash are financial instrument assets with fixed and determinable payments that are not quoted on an active market.These assets and liabilities are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loansand receivables are measured at amortised cost using the effective interest method (and for assets, less any impairment).

Cobram District Health recognises the following assets in this category:• cash and deposits; and• receivables (excluding statutory receivables).

Financial liabilities at amortised cost are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognisedamount and the redemption value being recognised in profit and loss over the period of the interest bearing liability, using the effective interest rate method. Cobram District Health recognises the following liabilities in this category:

• payables (excluding statutory payables); and• borrowings (including finance lease liabilities).

Derecognition of financial assets: A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive cash flows from the asset have expired.

Derecognition of financial liabilities: A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

Impairment of financial assetsAt the end of each reporting period, the Health Service assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

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. 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.


30 June 2019

NOTE 7.1: FINANCIAL INSTRUMENTSFinancial Risk Management Objectives and Policies

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of Cobram District Health's activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation.

(a) Categorisation of financial instruments






2019 $'000 $'000 $'000 $'000Contractual Financial Assets Cash and cash equivalents 5,873 - - 5,873 Receivables - Trade Debtors 110 - - 110 - Other Receivables 530 - - 530 Investments and Other Financial Assets - Term Deposits - - - - Total Financial Assets (i) 6,513 - - 6,513

Financial Liabilities Payables - - 1,222 1,222 Borrowings - - 48 48 Other Financial Liabilities - Accommodation Bonds - - 1,119 1,119 - Other - - 304 304 Total Financial Liabilities - - 2,693 2,693






2018 $'000 $'000 $'000 $'000Contractual Financial Assets Cash and cash equivalents - 3,305 - 3,305 Receivables - Trade Debtors - 133 - 133 - Other Receivables - 611 - 611 Investments and Other Financial Assets - Term Deposits - - - - Total Financial Assets (i) - 4,049 - 4,049

Financial Liabilities Payables - - 1,267 1,267 Borrowings - - 1,026 1,026 Other Financial Liabilities - Accommodation Bonds - - 571 571 - Other - - 178 178 Total Financial Liabilities - - 3,042 3,042

(i) The carrying amount excludes statutory receivables (i.e. GST Receivable and DHHS Receivable) and statutory payables (i.e. Revenuein advance and DHHS payable).



30 June 2019


Note 7.1 (b): Maturity analysis of Financial Liabilities as at 30 JuneThe following table discloses the contractual maturity analysis for the Health Service’s financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.

Total Nominal Less than 1 - 3 3 Months 1 - 5Note Carrying Amount 1 Month Months - 1 Year Years

Amount2019 $'000 $'000 $'000 $'000 $'000 $'000Financial LiabilitiesAt amortised costPayables (i) 5.2 1,222 1,222 1,222 - - - Borrowings 6.1 48 48 2 6 9 31 Other Financial Liabilities- Accommodation Deposits 5.3 1,119 1,119 - - 1,119 - - Other 5.3 304 304 304 - - -

Total Financial Liabilities 2,693 2,693 1,528 6 1,128 31

2018Financial LiabilitiesAt amortised costPayables (i) 5.2 1,267 1,267 1,267 - - - Borrowings 6.1 1,026 1,026 1 3 13 992 Other Financial Liabilities- Accommodation Deposits 5.3 571 571 - - 571 - - Other 5.3 178 178 178 - - -

Total Financial Liabilities 3,042 3,042 1,446 3 584 992

(i) Maturity analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST payable).

Maturity Dates



30 June 2019


Note 7.1 (c): Contractual receivables at amortised costs

01-Jul-18Expected loss rate 0% 0% 0% 0% 83%Gross carrying amount of contractual receivables 661 38 10 20 90 819 Loss allowance - - - - 75 75

30-Jun-19Expected loss rate 0% 0% 0% 0% 0%Gross carrying amount of contractual receivables 595 30 1 14 - 640 Loss allowance - - - - - -

Impairment of financial assets under AASB 9 – applicable from 1 July 2018From 1 July 2018, the the Health Service has been recording the allowance for expected credit loss for the relevant financial instruments,replacing AASB 139’s incurred loss approach with AASB 9’s Expected Credit Loss approach. Subject to AASB 9 impairment assessment include the the Health Service’s contractual receivables, statutory receivables and its investment in debt instruments.

Equity instruments are not subject to impairment under AASB 9. Other financial assets mandatorily measured or designated at fair value through net result are not subject to impairment assessment under AASB 9. While cash and cash equivalents are also subject to the impairment requirements of AASB 9, the identified impairment loss was immaterial.

Contractual receivables at amortised costThe Health Service applies AASB 9 simplified approach for all contractual receivables to measure expected credit losses using a lifetime expected loss allowance based on the assumptions about risk of default and expected loss rates. The the Health Service has grouped contractual receivables on shared credit risk characteristics and days past due and select the expected credit loss rate based on the Department’s past history, existing market conditions, as well as forward‑looking estimates at the end of the financial year.

On this basis, the the Health Service determines the opening loss allowance on initial application date of AASB 9 and the closing lossallowance at end of the financial year as disclosed above.

Reconciliation of the movement in the loss allowance for contractual receivables2019 2018

Balance at the beginning of the year - 75 Opening retained earnings adjustment on adoption of AASB 9 - - Opening Loss Allowance - 75 Modification of contractual cash flows on financial assets - - Increase in provision recognised in the net result - - Reversal of provision of receivables written off during the year as uncollectible - (75) Reversal of unused provision recognised in the net result - - Balance at end of the year - -

Credit loss allowance is classified as other economic flows in the net result. Contractual receivables are written off when there is no reasonable expectation of recovery and impairment losses are classified as a transaction expense. Subsequent recoveries of amounts previously written off are credited against the same line item.

In prior years, a provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified. A provision is made for estimated irrecoverable amounts from the sale of goods when there is objective evidence that an individual receivable is impaired. Bad debts considered as written off by mutual consent.

Statutory receivables and debt investments at amortised cost [AASB2016-8.4]The Health Service’s non-contractual receivables arising from statutory requirements are not financial instruments. However, they are nevertheless recognised and measured in accordance with AASB 9 requirements as if those receivables are financial instruments.

Both the statutory receivables and investments in debt instruments are considered to have low credit risk, taking into account the counterparty’s credit rating, risk of default and capacity to meet contractual cash flow obligations in the near term. As a result, the loss allowance recognised for these financial assets during the period was limited to 12 months expected losses. No loss allowance recognised at 30 June 2018 under AASB 139. No additional loss allowance required upon transition into AASB 9 on 1 July 2018.

NOTE 7.2: CONTINGENT ASSETS AND CONTINGENT LIABILITIES

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.

There are no known contingent assets or contingent liabilities for Cobram District Health at the date of this report.

CurrentLess than 1

month 1-3 months 3 months - 1

year 1-5 years

Less than 1 month 1-3 months

3 months - 1 year 1-5 years Total

Total

Current


30 June 2019


Note 7.1 (b): Maturity analysis of Financial Liabilities as at 30 JuneThe following table discloses the contractual maturity analysis for the Health Service’s financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.

Total Nominal Less than 1 - 3 3 Months 1 - 5Note Carrying Amount 1 Month Months - 1 Year Years

Amount2019 $'000 $'000 $'000 $'000 $'000 $'000Financial LiabilitiesAt amortised costPayables (i) 5.2 1,222 1,222 1,222 - - - Borrowings 6.1 48 48 2 6 9 31 Other Financial Liabilities- Accommodation Deposits 5.3 1,119 1,119 - - 1,119 - - Other 5.3 304 304 304 - - -

Total Financial Liabilities 2,693 2,693 1,528 6 1,128 31

2018Financial LiabilitiesAt amortised costPayables (i) 5.2 1,267 1,267 1,267 - - - Borrowings 6.1 1,026 1,026 1 3 13 992 Other Financial Liabilities- Accommodation Deposits 5.3 571 571 - - 571 - - Other 5.3 178 178 178 - - -

Total Financial Liabilities 3,042 3,042 1,446 3 584 992

(i) Maturity analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST payable).

Maturity Dates



30 June 2019

NOTE 8: OTHER DISCLOSURES

This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial report.

Structure8.1 Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities8.2 Responsible persons disclosure8.3 Remuneration of Executive Officers8.4 Related Parties8.5 Remuneration of auditors8.6 Events occurring after the balance sheet date8.7 Jointly Controlled Operations8.8 Economic Dependency8.9 AASBs issued that are not yet effective



30 June 2019

NOTE 8.1: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH INFLOW / (OUTFLOW) TOTAL TOTALFROM OPERATING ACTIVITIES 2019 2018

$'000 $'000

NET RESULT FOR THE YEAR 2,590 449

Non-cash movementsDepreciation and Amortisation 1,561 1,411 Debt Forgiveness (975) -

Movements included in investing and financing activitiesNet (gain)/loss from disposal of non financial physical assets (20) (4)

Movements in assets and liabilitiesChange in Operating Assets & Liabilities

(Increase)/Decrease in Receivables 54 (136) (Increase)/Decrease in Prepayments (94) (9) Increase/(Decrease) in Payables 17 324 Increase/(Decrease) in Provisions 192 36 Change in Inventories - 42

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 3,325 2,113

NOTE 8.2: RESPONSIBLE PERSON DISCLOSURESIn accordance with the Ministerial Directions issued by the Assistant Treasurer under the Financial Management Act 1994, the following disclosuresare made regarding responsible persons for the reporting period.

Responsible Ministers:The Honourable Jill Hennessy, Minister for Health and Minister for Ambulance Services 01/07/2018 - 29/11/2018The Honourable Jenny Mikakos, Minister for Health and Minister for Ambulance Services 29/11/2018 - 30/06/2019

Governing BoardsDale Brooks (Chair of the Board) 01/07/2018 - 30/06/2019Paul Ukich 01/07/2018 - 30/06/2019Alex Monk 01/07/2018 - 30/06/2019Patricia West 01/07/2018 - 28/06/2019Kade Beasley 01/07/2018 - 30/06/2019Sarah Davies 01/07/2018 - 30/06/2019

01/07/2018 - 30/06/2019

Remuneration of Responsible PersonsThe number of Responsible Persons are shown in their relevant income bands:

2019 2018Income Band $'000 $'000$0 - $9,999 7 8$160,000 - $169,999 - 1Total Numbers 7 9Total remuneration received or due and receivable by Responsible Persons from the reporting entity amounted to:

During the year Cobram District Health paid $99,073 (2018 $45,858) to Numurkah District Health Service in relation to services providedby the CEO. No remuneration was paid to the CEO directly by Cobram District Health

Amounts relating to Governing Board Members and Accountable Officer are disclosed in the Health Service's controlled entities financial statements.Amounts relating to Responsible Ministers are reported within the Department of Parliamentary Services' Financial Report.

Accountable OfficersJacque Phillips (Chief Executive Officer)

Period

$18 $168


30 June 2019

NOTE 8: OTHER DISCLOSURES

This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial report.

Structure8.1 Reconciliation of Net Result for the Year to Net Cash Flow from Operating Activities8.2 Responsible persons disclosure8.3 Remuneration of Executive Officers8.4 Related Parties8.5 Remuneration of auditors8.6 Events occurring after the balance sheet date8.7 Jointly Controlled Operations8.8 Economic Dependency8.9 AASBs issued that are not yet effective



30 June 2019

NOTE 8.3: REMUNERATION OF EXECUTIVES

Remuneration of executivesThe number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below.Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is disclosed in the following categories.

Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.

Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.

Other long-term benefits include long service leave, other long-service benefit or deferred compensation.

Remuneration of executive officers2019 2018$'000 $'000

Short-term employee benefits 140 - Post-employment benefits 11 - Other long-term benefits 4 - Total Remuneration 155 - Total Number of executives (i) 1 - Total annualised employee equivalent (AEE) (ii) 1 -

Notes:(i) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.4).(ii) Annualised employee equivalent is based on the time fraction worked over the reporting period. This is calculated as the total number of days the employee is engaged to work during the week by the total number of full-time working days per week (this is generally five full working days per week).

Total Remuneration



30 June 2019

NOTE 8.4: RELATED PARTIES

The Health Service is a wholly owned and controlled entity of the State of Victoria. Related parties of the hospital include:• all key management personnel and their close family members;• all cabinet ministers and their close family members; and• Jointly Controlled Operation - A member of the Hume Region Health Alliance; and• all hospitals and public sector entities that are controlled and consolidated into the whole of state consolidated financial statements.

All related party transactions have been entered into on an arm’s length basis.

Key management personnel (KMP) of the hospital include the Portfolio Ministers and Cabinet Ministers and KMP as determined by the hospital. The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968 , and is reported within the Department of Parliamentary Services’ Financial Report. Key management personnel of the agency include:

Key Management Personnel Position TitleDale Brooks (Chair of the Board) Chair of the Board 01/07/2018 - 30/06/2019Paul Ukich Director 01/07/2018 - 30/06/2019Alex Monk Director 01/07/2018 - 30/06/2019Patricia West Director 01/07/2018 - 28/06/2019Kade Beasley Director 01/07/2018 - 30/06/2019Sarah Davies Director 01/07/2018 - 30/06/2019

Chief Executive Officer 01/07/2018 - 30/06/2019Carolyn Hargreaves Director of Clinical Services 01/07/2018 - 30/06/2019

The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968, and is reported within the Department of Parliamentary Services’ Financial Report.

(i)Total remuneration paid to KMPs employed as a contractor during the reporting period through accounts payable has been reported under short-term employee benefits. (ii)KMPs are also reported in Note 8.2 Responsible Persons or Note 8.3 Remuneration of Executives.

Significant transactions with government-related entitiesCobram District Health received funding from the Department of Health and Human Services of $11.02M (2018: $9.98M).

Expenses incurred by the Health Service in delivering services and outputs are in accordance with Health Purchasing Victoria requirements.Goods and services including procurement, diagnostics, patient meals and multi-site operational support are provided by other Victorian Health Service Providers on commercial terms.

Professional medical indemnity insurance and other insurance products are obtained from a Victorian Public Financial Corporation.

The Standing Directions of the Assistant Treasurer require the Health Service to hold cash (in excess of working capital) in accordance with the State’s centralised banking arrangements. All borrowings are required to be sourced from Treasury Corporation Victorian unless an exemption has been approved by the Minister for Health and Human Services and the Treasurer.

In addition to contract CEO services as detailed in note 8.2, Cobram District Health purchased other support services from Numurkah District Healthduring the year. The net total of all transactions during the year amounted to $178,280 (2018 $101,905).

Transactions with key management personnel and other related partiesGiven the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other members of the public e.g. stamp duty and other government fees and charges. Further employment of processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004 and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with the Victorian Government Procurement Board requirements.

Outside of normal citizen type transactions with the Department of Health and Human Services, all other related party transactions that involvedKMPs and their close family members have been entered into on an arm's length basis. Transactions are disclosed when they are considered material to the users of the financial report in making and evaluation decisions about the allocation of scare resources.

There were no related party transactions with Cabinet Ministers required to be disclosed in 2019.There were no related party transactions required to be disclosed for Cobram District Health Board of Directors and Executive Directors in 2019.

Other long-term benefits 4Total 272

Short term employee benefits 256Post-employment benefits 12

1831021

214

Period

COMPENSATION2019$'000

2018$'000

Jacque Phillips (Chief Executive Officer)


30 June 2019

NOTE 8.3: REMUNERATION OF EXECUTIVES

Remuneration of executivesThe number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below.Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is disclosed in the following categories.

Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.

Post-employment benefits include pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.

Other long-term benefits include long service leave, other long-service benefit or deferred compensation.

Remuneration of executive officers2019 2018$'000 $'000

Short-term employee benefits 140 - Post-employment benefits 11 - Other long-term benefits 4 - Total Remuneration 155 - Total Number of executives (i) 1 - Total annualised employee equivalent (AEE) (ii) 1 -

Notes:(i) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.4).(ii) Annualised employee equivalent is based on the time fraction worked over the reporting period. This is calculated as the total number of days the employee is engaged to work during the week by the total number of full-time working days per week (this is generally five full working days per week).

Total Remuneration



30 June 2019

NOTE 8.5: REMUNERATION OF AUDITORS TOTAL TOTAL2019 2018$'000 $'000

Victorian Auditor-General's OfficeAudit or review of financial statement 24 28

24 28 Other ProvidersInternal Audit Services 8 5

8 5



30 June 2019NOTE 8.6: EVENTS OCCURRING AFTER THE BALANCE SHEET DATEEffective 1 July 2019 by order of the Governor-In-Council pursuant to Sections 65(1) and 65 (4) of the Health Services Act 1988, Numurkah and District Health Service, Cobram District Health and Nathalia District Hospital were amalgamated to form a new health service known as NCN Health. The operations and all employees, assets and liabilities of the three health services transfer to NCN Health.

NOTE 8.7: JOINTLY CONTROLLED OPERATIONS AND ASSETS

Ownership InterestName of Entity 2019 2018

% %Hume Region Health Alliance 4.07 4.05

Cobram District Health's interest in assets employed in the above jointly controlled operations and assets is detailed below.The amounts are included in the financial statements and consolidated financial statements under their respective categories:

2019 2018Current Assets $'000 $'000Cash and Cash Equivalents 278 223 Receivables 55 157 Prepayments 10 6 Total Current Assets 343 386

Non Current AssetsProperty Plant and Equipment 45 55 Intangible Assets 24 20 Total Non Current Assets 69 75 Total Assets 412 461

Current LiabilitiesPayables 150 202 Borrowings 17 17 Total Current Liabilities 167 219

Non Current LiabilitiesBorrowings 14 17 Total Non Current Liabilities 14 17

Total Liabilities 181 236 Net Assets 231 225

Cobram District Health's interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:

RevenuesRevenue from Operating Activities 357 327 Non Operating Activities 4 - Total Revenue 361 327

ExpensesOperating Expenses 316 281 Total Expenses 316 281 Net Result Before Capital and Specific Items 45 46

Capital Purpose Income - 166 Finance Costs (1) (1) Capital Purpose Expenditure (2) (258) Depreciation and Amortisation (34) (33)

(37) (126)

Net Result 8 (80)

Contingent Liabilities and Capital CommitmentsThere are no known contingent assets or liabilities for Hume Region Health Alliance as at the date of this report.

NOTE 8.8: ECONOMIC DEPENDENCYCobram District Health is dependent on the Department of Health and Human Services for the majority of its revenue used to operate the entity. At the date of this report, the Board of Directors has no reason to believe the Department will not continue to support Cobram District Health.


30 June 2019

NOTE 8.5: REMUNERATION OF AUDITORS TOTAL TOTAL2019 2018$'000 $'000

Victorian Auditor-General's OfficeAudit or review of financial statement 24 28

24 28 Other ProvidersInternal Audit Services 8 5

8 5



30 June 2019

NOTE 8.9: AASBs ISSUED THAT ARE NOT YET EFFECTIVECertain new Australian accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable.

As at 30 June 2019, the following standards and interpretations had been issued by the AASB but were not yet effective.They become effective for the first financial statements for reporting periods commencing after the stated operative datesas detailed in the table below. Cobram District Health has not and does not intend to adopt these standards early.

01-Jan-19

01-Jan-19

01-Jan-19

Topic Key Requirements Effective date

Impact on financial statements

AASB 15 Revenue from Contracts with Customers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. Note that amending standard AASB 2015-8 Amendments to Australian Accounting Standards - Effective Date of AASB 15 has deferred the effective date of AASB 15 to annual reporting periods beginning on or after 1 January 2018, instead of 1 January 2017.

The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. Revenue from grants that are provided under an enforceable agreement that have sufficiently specific obligations, will now be deferred and recognised as the performance obligations attached to the grant are satisfied.There is an expectation this will impact capital grant funding, however it is not possible to quantify the impact until such time as funding is received and projects are commenced.

AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities

AASB 2016-8 inserts Australian requirements and authoritative implementation guidance for not-for-profit-entities into AASB 9 and AASB 15. This Standard amends AASB 9 and AASB 15 to include requirements to assist not-for-profit entities in applying the respective standards to particular transactions and events.

This standard clarifies the application of AASB 15 and AASB 9 in a not-for-profit context. The areas within these standards that are amended for not-for-profit application include:AASB 9 • Statutory receivables are recognised and measured similarly to financial assets. AASB 15• The ‘customer’ does not need to be the recipient of goods and/or services;• The “contract” could include an arrangement entered into under the direction of another party;• Contracts are enforceable if they are enforceable by legal or ‘equivalent means’;• Contracts do not have to have commercial substance, only economic substance; and• Performance obligations need to be ‘sufficiently specific’ to be able to apply AASB 15 to these transactions.

The impact on reporting capital funding has potential to result in material change, however this is not able to be quantified prior to receipt of capital grants and commencement of projects.

AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently not recognised) on balance sheet.

The assessment has indicated that most operating leases, with the exception of short term and low value leases will come on to the balance sheet and will be recognised as right of use assets with a corresponding lease liability. In the operating statement, the operating lease expense will be replaced by depreciation expense of the asset and an interest charge.There will be no change for lessors as the classification of operating and finance leases remains unchanged.There is no material impact from implementation of this standard due to the lack of existing operating leases.



30 June 2019

NOTE 8.9: AASBs ISSUED THAT ARE NOT YET EFFECTIVE (Continued)

01-Jan-19

01-Jan-19

01-Jan-20

The following accounting pronouncements are also issued but not effective for the 2018‑19 reporting period. At this stage, the preliminary assessment suggests they may have insignificant impacts on public sector reporting.

• AASB 2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and Joint Ventures• AASB 2018-1 Amendments to Australian Accounting Standards – Annual Improvements 2015 – 2017 Cycle



AASB 2018-8 Amendments to Australian Accounting Standards – Right of Use Assets of Not-for-Profit entities

This standard amends various other accounting standards to provide an option for not-for-profit entities to not apply the fair value initial measurement requirements to a class or classes of right of use assets arising under leases with significantly below-market terms and conditions principally to enable the entity to further its objectives. This Standard also adds additional disclosure requirements to AASB 16 for not-for-profit entities that elect to apply this option.

Under AASB 1058, not-for-profit entities are required to measure right-of-use assets at fair value at initial recognition for leases that have significantly below-market terms and conditions. For right-of-use assets arising under leases with significantly below market terms and conditions principally to enable the entity to further its objectives (peppercorn leases), AASB 2018-8 provides a temporary option for Not-for-Profit entities to measure at initial recognition, a class or classes of right-of-use assets at cost rather than at fair value and requires disclosure of the adoption. The State has elected to apply the temporary option in AASB 2018-8 for not-for-profit entities to not apply the fair value provisions under AASB 1058 for these right-of-use assets. In making this election, the State considered that the methodology of valuing peppercorn leases was still being developed.No material impact during the period applicable under the election.

AASB 1058 Income of Not-for-Profit Entities

AASB 1058 will replace the majority of income recognition in relation to government grants and other types of contributions requirements relating to public sector not-for-profit entities, previously in AASB 1004 Contributions. The restructure of administrative arrangement will remain under AASB 1004 and will be restricted to government entities and contributions by owners in a public sector context,AASB 1058 establishes principles for transactions that are not within the scope of AASB 15, where the consideration to acquire an asset is significantly less than fair value to enable not-for-profit entities to further their objective

Grant revenue is currently recognised up front upon receipt of the funds under AASB 1004 Contributions.The timing of revenue recognition for grant agreements that fall under the scope of AASB 1058 may be deferred. For example, revenue from capital grants for the construction of assets will need to be deferred and recognised progressively as the asset is being constructed.The impact on current revenue recognition of the changes is the potential phasing and deferral of revenue recorded in the operating statement.Impact is not able to be quantified until such time as capital grants are received and projects commence.

AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material

This Standard principally amends AASB 101 Presentation of Financial Statements and AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. The amendments refine and clarify the definition of material in AASB 101 and its application by improving the wording and aligning the definition across AASB Standards and other publications. The amendments also include some supporting requirements in AASB 101 in the definition to give it more prominence and clarify the explanation accompanying the definition of material.

The standard is not expected to have a significant impact on the public sector.No material impact is expected.


30 June 2019

NOTE 8.9: AASBs ISSUED THAT ARE NOT YET EFFECTIVECertain new Australian accounting standards and interpretations have been published that are not mandatory for 30 June 2019 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable.

As at 30 June 2019, the following standards and interpretations had been issued by the AASB but were not yet effective.They become effective for the first financial statements for reporting periods commencing after the stated operative datesas detailed in the table below. Cobram District Health has not and does not intend to adopt these standards early.

01-Jan-19

01-Jan-19

01-Jan-19



AASB 15 Revenue from Contracts with Customers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. Note that amending standard AASB 2015-8 Amendments to Australian Accounting Standards - Effective Date of AASB 15 has deferred the effective date of AASB 15 to annual reporting periods beginning on or after 1 January 2018, instead of 1 January 2017.

The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. Revenue from grants that are provided under an enforceable agreement that have sufficiently specific obligations, will now be deferred and recognised as the performance obligations attached to the grant are satisfied.There is an expectation this will impact capital grant funding, however it is not possible to quantify the impact until such time as funding is received and projects are commenced.

AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities

AASB 2016-8 inserts Australian requirements and authoritative implementation guidance for not-for-profit-entities into AASB 9 and AASB 15. This Standard amends AASB 9 and AASB 15 to include requirements to assist not-for-profit entities in applying the respective standards to particular transactions and events.

This standard clarifies the application of AASB 15 and AASB 9 in a not-for-profit context. The areas within these standards that are amended for not-for-profit application include:AASB 9 • Statutory receivables are recognised and measured similarly to financial assets. AASB 15• The ‘customer’ does not need to be the recipient of goods and/or services;• The “contract” could include an arrangement entered into under the direction of another party;• Contracts are enforceable if they are enforceable by legal or ‘equivalent means’;• Contracts do not have to have commercial substance, only economic substance; and• Performance obligations need to be ‘sufficiently specific’ to be able to apply AASB 15 to these transactions.

The impact on reporting capital funding has potential to result in material change, however this is not able to be quantified prior to receipt of capital grants and commencement of projects.

AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently not recognised) on balance sheet.

The assessment has indicated that most operating leases, with the exception of short term and low value leases will come on to the balance sheet and will be recognised as right of use assets with a corresponding lease liability. In the operating statement, the operating lease expense will be replaced by depreciation expense of the asset and an interest charge.There will be no change for lessors as the classification of operating and finance leases remains unchanged.There is no material impact from implementation of this standard due to the lack of existing operating leases.



www.cobramdistricthealth.org.au

Cobram District Health24-32 Broadway Street, Cobram, Victoria, 3644

Tel: (03) 5871 0777Fax: (03) 5872 2510

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