annual report - rural northwest...
TRANSCRIPT
ANNUALREPORT
2015
VISION
MISSION
CONTENTS
Moving together through change to provide innovative rural health care
Rural Northwest Health will provide accessible, efficient and excellent care to our community within the Wimmera Mallee Region
4
6
7
8
10
14
14
15
16
17
18-19
20
21
22
23 – 24
FS1 – 48
This report• Covers the period 1 July 2014 to 30 June 2015• Is prepared for the Minister for Health, the
Parliament of Victoria and the community• Is prepared in accordance with government and
legislative requirements and FRD 30B guidelines• Should also be read in conjunction with the
Quality of Care Report• Will be presented to the community at Rural
Northwest Health’s Annual General Meeting in November 2015
• Acknowledges the support of our community• Is printed with 100% recycled stock.
Rural Northwest Health - Annual Report 20152 3Rural Northwest Health - Annual Report 2015
Board Chair & CEO Report
About Our Organisation
Organisational Structure
Board of Management
Statement of Priorities
Life Governors
Occupational Health & Safety
Financial Overview
Service Performance at a Glance
Legislative Compliance
Disclosure Index
Appendix A
Financial Certification
Auditor General’s Report
Financial Statements
Rural Northwest Health acknowledgesthe support of the Victorian Government
Our Staff
9Executive Team
VISION
MISSION
CONTENTS
Moving together through change to provide innovative rural health care
Rural Northwest Health will provide accessible, efficient and excellent care to our community within the Wimmera Mallee Region
4
6
7
8
10
14
14
15
16
17
18-19
20
21
22
23 – 24
FS1 – 48
This report• Covers the period 1 July 2014 to 30 June 2015• Is prepared for the Minister for Health, the
Parliament of Victoria and the community• Is prepared in accordance with government and
legislative requirements and FRD 30B guidelines• Should also be read in conjunction with the
Quality of Care Report• Will be presented to the community at Rural
Northwest Health’s Annual General Meeting in November 2015
• Acknowledges the support of our community• Is printed with 100% recycled stock.
Rural Northwest Health - Annual Report 20152 3Rural Northwest Health - Annual Report 2015
Board Chair & CEO Report
About Our Organisation
Organisational Structure
Board of Management
Statement of Priorities
Life Governors
Occupational Health & Safety
Financial Overview
Service Performance at a Glance
Legislative Compliance
Disclosure Index
Appendix A
Financial Certification
Auditor General’s Report
Financial Statements
Rural Northwest Health acknowledgesthe support of the Victorian Government
Our Staff
9Executive Team
Board Chair and CEO Report
Leo CaseyBoard Chair
Catherine MorleyChief ExecutiveOfficer
Board Chair and Chief Executive Officer’s ReportRural Northwest Heath’s vision is to work together through change to provide innovative rural health services. A Vision Statement defines the optimal desired future state - the mental picture - of what an organisation wants to achieve over time; and provides guidance and inspiration as to what an organisation is focused on achieving in five, ten, or more years.
Rural Northwest Health developed a strategic plan in 2010 which detailed 13 strategic goals that the organisation was to work on for the next five years. Three of these goals were imperative; Rural Northwest Health needed to provide high quality and safe services and have a robust clinical governance system in place, be financially viable and ensure that service enhancements could continue despite funding changes and that the people that worked at Rural Northwest Health were engaged, committed, caring and demon-strated leadership.
The last 12 months has proven to be exciting, challenging, rewarding and has clearly demonstrated that the team at Rural Northwest Health embrace change and our vision.
On behalf of the Board of Management, the executive team and the staff we are delighted to present the annual financial results and the results of the agreed Statement of Priorities between Rural Northwest Health, the Minister for Health and the Department of Health and Human Services.
The Statements of Priorities are key accountability agreements between Victorian public health services and the Minister for Health. The annual agreements facilitate delivery of our substantial progress towards the key shared objectives of financial viability, improved access and quality of service provision.
Statements of Priorities are consistent with the public health services’ strategic plans and aligned to government policy directions and priorities.Rural Northwest Health’s Statement of Priorities consists of four parts:• Part A provides an overview of the service profile, strategic priorities and deliverables the health service will achieve in the year ahead.• Part B lists the key financial, access and service performance priorities and agreed targets.• Part C lists funding and associated activity.• Part D forms the service agreement between each health service and the state of Victoria for the purposes of the National Health Reform Agreement.
Rural Northwest Health are exceptionally pleased with their overall results in 2014-15.
Financially we have continued to focus on increasing our income through grants, fundraising and good business practices and minimising our expenditure by concentrating on improving efficiencies and reducing waste where ever possible. The end result of a positive $227,000 is pleasing and reflects strong financial management and governance.
We thank the Annie Dawe estate for their bequest, the Walk for Yarri fund raisers, Team Outpatients who continue to raise funds for the Hopetoun campus, the Landt Hostel Auxiliary that donated a significant piece of equipment for the urgent care unit, the Hope-toun Ladies Auxiliary that provides support every month, the Department of Health and Human Services who provided capital funding for the expansion of the dining room in Hopetoun and small grants for equipment and safety across all areas of the organisa-tion. All of these funds have been used wisely to enhance and improve the quality and safety of the care we deliver.
Stage 2 which is a $10.6 million project at the Warracknabeal campus is tracking on time and on budget. We have opened up the new Banksia wing in Yarriambiack Lodge and thank the Warracknabeal Auxiliary for their assistance provided to the residents. In March, we moved into the wonderful Landt building that is back to its former pristine state. Even though the building is being used for other purposes than it was originally planned for, it is wonderful to utilise this donation from the 1970’s. Rural Northwest Health will invest $1.8 million into the project and are working hard to ensure that this project delivers a building that will meet our needs for the
next 20-30 years. Patty Kinnersly and Leo Casey are members of the Project Control Group overseeing the development.The Board reviewed the shire’s community members that were living with cancer and accessing services at Wimmera Health Care Group. Over 500 episodes of care had been provided in 10 months for people living with cancer in Horsham and the board decided to donate $50,000 this financial year for the new Cancer Centre and $50,000 next financial year. Rural Northwest Health is the first health service to ever support a regional service so we continue to be trendsetters.
Thanks go to Matt Richardson, Chair of the Finance and Audit Committee and committee members Brian Hewitt, Leo Casey and Patty Kinnersly for their guidance and support.
The focus of improving and enhancing clinical systems and governance has been led by Janette McCabe, the Chair of the Clinical Governance committee. This year’s focus has been to improve evidence based clinical governance with support and leadership from Dr Alan Wolff, our Director of Medical Services. The committee have worked hard to ensure all board members have a focus on clinical governance. The Board of Management now hear a client story every month, attend community stakeholder meetings and document every month about how they have heard the voice of the community member and what they have undertaken to improve quality and safety at Rural Northwest Health. Rural Northwest Health’s focus is to ensure that the clinical activities that we undertake on a daily basis are always delivered to the highest evidence based standard.
We have worked hard to ensure that we hear the voice of the community member in all our actions and decisions. The Hopetoun Beulah Reference Group, chaired by Leo Casey and supported by Barb Hallam, Ross Cook, Daryl Burdett, Prue McCredden and Peter Hallam, support us to be connected to all our community member’s needs. Our thanks go to them for their commitment and time.
We have commenced regular community engagement forums with acute and community clients, residents from Yarriambiack Lodge and Hopetoun community members and residents. These sessions are a pleasure to attend and the information shared with us about what we can improve has been utilised across all areas of the organisation.
The Community Action Research Group governance committee continues under the chair, Carolyn Morcom. We are eagerly awaiting the final research paper in 2016.
Rural Northwest Health commenced a cultural change journey in 2010. A definition of cultural change is that, “It is an ongoing, holistic journey that includes re-examining values, beliefs, attitudes, language, practices and policies and exploring the full range of efforts needed to transform the culture into a community where everyone thrives”.(Walk with Me, 2014; Rahman & Schnelle, 2008)
A number of initiatives have been undertaken over the years to assist us to change. These include leadership training, the introduc-tion of the FISH principles, LEAN training, introducing a health and wellbeing program and holding all staff accountable for their actions and behaviours. This cultural change journey is discussed and planned at the Health and Wellbeing Committee, chaired by Glenda Hewitt. Rural Northwest Health are very pleased to announce that there has been significant improvement in the staff survey results.
We have evidence that we have changed the culture significantly with the last staff survey results showing that staff witnessing bullying had decreased from 56% to 22%. 95% of staff now see the organisation as an employer of choice as opposed to 68% in 2007 and that there has been an increase of 43% of staff that acknowledge that the organisation acknowledge and value behaviours that are consistent with our values.
We would like to thank the Board of Management for their leadership support and expertise to assist Rural Northwest Health to be the best it can be.
Staff, volunteers, community members and partners are essential ingredients in Rural Northwest Health’s success and we thank them all for their hard work, commitment and embracing and supporting the changes that we have introduced.
2015-16 is going to be another year of opportunity and change. We look forward to celebrating the opening of the Warracknabeal campus, the launch of the new strategic plan and assisting the people we have the privilege to care for to have something to love, something to do and something to look forward to and having some fun as well.
Responsible Bodies DeclarationIn accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Rural Northwest Health for the year ending 30 June 2015.
p pLeo Casey
Board ChairWarracknabeal12 August 2015
Rural Northwest Health - Annual Report 20154 5Rural Northwest Health - Annual Report 2015
Board Chair and CEO Report (continued)
Board Chair and CEO Report
Leo CaseyBoard Chair
Catherine MorleyChief ExecutiveOfficer
Board Chair and Chief Executive Officer’s ReportRural Northwest Heath’s vision is to work together through change to provide innovative rural health services. A Vision Statement defines the optimal desired future state - the mental picture - of what an organisation wants to achieve over time; and provides guidance and inspiration as to what an organisation is focused on achieving in five, ten, or more years.
Rural Northwest Health developed a strategic plan in 2010 which detailed 13 strategic goals that the organisation was to work on for the next five years. Three of these goals were imperative; Rural Northwest Health needed to provide high quality and safe services and have a robust clinical governance system in place, be financially viable and ensure that service enhancements could continue despite funding changes and that the people that worked at Rural Northwest Health were engaged, committed, caring and demon-strated leadership.
The last 12 months has proven to be exciting, challenging, rewarding and has clearly demonstrated that the team at Rural Northwest Health embrace change and our vision.
On behalf of the Board of Management, the executive team and the staff we are delighted to present the annual financial results and the results of the agreed Statement of Priorities between Rural Northwest Health, the Minister for Health and the Department of Health and Human Services.
The Statements of Priorities are key accountability agreements between Victorian public health services and the Minister for Health. The annual agreements facilitate delivery of our substantial progress towards the key shared objectives of financial viability, improved access and quality of service provision.
Statements of Priorities are consistent with the public health services’ strategic plans and aligned to government policy directions and priorities.Rural Northwest Health’s Statement of Priorities consists of four parts:• Part A provides an overview of the service profile, strategic priorities and deliverables the health service will achieve in the year ahead.• Part B lists the key financial, access and service performance priorities and agreed targets.• Part C lists funding and associated activity.• Part D forms the service agreement between each health service and the state of Victoria for the purposes of the National Health Reform Agreement.
Rural Northwest Health are exceptionally pleased with their overall results in 2014-15.
Financially we have continued to focus on increasing our income through grants, fundraising and good business practices and minimising our expenditure by concentrating on improving efficiencies and reducing waste where ever possible. The end result of a positive $227,000 is pleasing and reflects strong financial management and governance.
We thank the Annie Dawe estate for their bequest, the Walk for Yarri fund raisers, Team Outpatients who continue to raise funds for the Hopetoun campus, the Landt Hostel Auxiliary that donated a significant piece of equipment for the urgent care unit, the Hope-toun Ladies Auxiliary that provides support every month, the Department of Health and Human Services who provided capital funding for the expansion of the dining room in Hopetoun and small grants for equipment and safety across all areas of the organisa-tion. All of these funds have been used wisely to enhance and improve the quality and safety of the care we deliver.
Stage 2 which is a $10.6 million project at the Warracknabeal campus is tracking on time and on budget. We have opened up the new Banksia wing in Yarriambiack Lodge and thank the Warracknabeal Auxiliary for their assistance provided to the residents. In March, we moved into the wonderful Landt building that is back to its former pristine state. Even though the building is being used for other purposes than it was originally planned for, it is wonderful to utilise this donation from the 1970’s. Rural Northwest Health will invest $1.8 million into the project and are working hard to ensure that this project delivers a building that will meet our needs for the
next 20-30 years. Patty Kinnersly and Leo Casey are members of the Project Control Group overseeing the development.The Board reviewed the shire’s community members that were living with cancer and accessing services at Wimmera Health Care Group. Over 500 episodes of care had been provided in 10 months for people living with cancer in Horsham and the board decided to donate $50,000 this financial year for the new Cancer Centre and $50,000 next financial year. Rural Northwest Health is the first health service to ever support a regional service so we continue to be trendsetters.
Thanks go to Matt Richardson, Chair of the Finance and Audit Committee and committee members Brian Hewitt, Leo Casey and Patty Kinnersly for their guidance and support.
The focus of improving and enhancing clinical systems and governance has been led by Janette McCabe, the Chair of the Clinical Governance committee. This year’s focus has been to improve evidence based clinical governance with support and leadership from Dr Alan Wolff, our Director of Medical Services. The committee have worked hard to ensure all board members have a focus on clinical governance. The Board of Management now hear a client story every month, attend community stakeholder meetings and document every month about how they have heard the voice of the community member and what they have undertaken to improve quality and safety at Rural Northwest Health. Rural Northwest Health’s focus is to ensure that the clinical activities that we undertake on a daily basis are always delivered to the highest evidence based standard.
We have worked hard to ensure that we hear the voice of the community member in all our actions and decisions. The Hopetoun Beulah Reference Group, chaired by Leo Casey and supported by Barb Hallam, Ross Cook, Daryl Burdett, Prue McCredden and Peter Hallam, support us to be connected to all our community member’s needs. Our thanks go to them for their commitment and time.
We have commenced regular community engagement forums with acute and community clients, residents from Yarriambiack Lodge and Hopetoun community members and residents. These sessions are a pleasure to attend and the information shared with us about what we can improve has been utilised across all areas of the organisation.
The Community Action Research Group governance committee continues under the chair, Carolyn Morcom. We are eagerly awaiting the final research paper in 2016.
Rural Northwest Health commenced a cultural change journey in 2010. A definition of cultural change is that, “It is an ongoing, holistic journey that includes re-examining values, beliefs, attitudes, language, practices and policies and exploring the full range of efforts needed to transform the culture into a community where everyone thrives”.(Walk with Me, 2014; Rahman & Schnelle, 2008)
A number of initiatives have been undertaken over the years to assist us to change. These include leadership training, the introduc-tion of the FISH principles, LEAN training, introducing a health and wellbeing program and holding all staff accountable for their actions and behaviours. This cultural change journey is discussed and planned at the Health and Wellbeing Committee, chaired by Glenda Hewitt. Rural Northwest Health are very pleased to announce that there has been significant improvement in the staff survey results.
We have evidence that we have changed the culture significantly with the last staff survey results showing that staff witnessing bullying had decreased from 56% to 22%. 95% of staff now see the organisation as an employer of choice as opposed to 68% in 2007 and that there has been an increase of 43% of staff that acknowledge that the organisation acknowledge and value behaviours that are consistent with our values.
We would like to thank the Board of Management for their leadership support and expertise to assist Rural Northwest Health to be the best it can be.
Staff, volunteers, community members and partners are essential ingredients in Rural Northwest Health’s success and we thank them all for their hard work, commitment and embracing and supporting the changes that we have introduced.
2015-16 is going to be another year of opportunity and change. We look forward to celebrating the opening of the Warracknabeal campus, the launch of the new strategic plan and assisting the people we have the privilege to care for to have something to love, something to do and something to look forward to and having some fun as well.
Responsible Bodies DeclarationIn accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Rural Northwest Health for the year ending 30 June 2015.
p pLeo Casey
Board ChairWarracknabeal12 August 2015
Rural Northwest Health - Annual Report 20154 5Rural Northwest Health - Annual Report 2015
Board Chair and CEO Report (continued)
1999
2001
2008
Rural Northwest Health wascreated from the amalgamationof Warracknabeal DistrictHospital (including JR & AELandt Nursing Home),Hopetoun Bush Nursing Hospital(including Cumming House)and Beulah Pioneers BushNursing Hospital
The two low care facilities —Corrong Village at Hopetounand Landt Hostel atWarracknabeal weresubsequently amalgamatedwith RNH
To modernise Rural NorthwestHealth’s facilities, newcampuses have been constructedat Hopetoun and Warracknabeal.Hopetoun’s new campus andambulance station facilitieswere officially opened inJuly 2008.
Stage One of Warracknabeal’sredevelopment, including newintegrated aged facilities,administration and supportservices, were officiallyopened by the VictorianPremier in October 2008.
OUR HISTORY
About our Organisation Organisational Structure
RNH is located in the Wimmera Mallee region of Victoria in the Yarriambiack Shire and serves a population of around 7,082 across the communities of Warracknabeal, Hopetoun and Beulah.
Rural Northwest Health was established in 1999 under the Health Services Act 1994.
The responsible Ministers during the reporting period were:The Honourable Jill Hennessy MLA, Minster for Health, Minister for Ambulance Services - 4 December 2014 to 30 June 2015
Martin Foley MLA, Minister for Mental Health - 4 December 2014 to 30 June 2015
The Honourable David Davis MLC, Minister for Health, Minister for Ageing - 1 July 2014 to 3 December 2014
The Honourable Mary Wooldridge MLA, Minister for Mental Health - 1 July 2014 to 3 December 2014
This Annual Report should be read in conjunction with our 2014–15 Quality of Care Report. Both documents are available on our website and from all our sites.
After Hours ServiceGPs and nursing staff provide an After Hours On Call service 24 hours 7 days per week at Warracknabeal and Hopetoun
Acute CareRNH has 12 acute beds at the Warracknabeal Campus and 4 acute beds at the Hopetoun Campus. Both campuses provide urgent care services• Acute medical• Palliative Care• Pharmacy• Pathology services• Accident and urgent care
Aged CareRNH has 60 aged care places at the Warracknabeal Campus and 30 aged care places at the Hopetoun Campus• High and low care accommodation • Respite care• Memory Support Unit (Warracknabeal)• Lifestyle program• Cognitive Rehabilitative Therapist
Medical Imaging (Warracknabeal)• X-ray • Ultrasound
SpecialtiesEar, Nose, Throat and Cardiology
Community HealthCommunity and Allied Health services are provided across the three campuses at Warracknabeal, Beulah and Hopetoun • Ante Natal and Domiciliary midwifery services• Asthma education and health plan development• Cancer Resource Nurse• Community Health nurse• Day Program (Warracknabeal and Beulah)• Diabetes education and health plan development• District nursing services• Health education and promotion• Hospital to home• Memory Support Nurse• Post-acute care
Allied Health• Counselling• Dietetics• Exercise physiology• Massage Therapy• Occupational therapy• Physiotherapy• Podiatry• Social Work• Speech pathology
Support Services• Carer support services• Volunteer program
WarracknabealCampus Manager
Wendy James
Hopetoun/BeulahCampus Manager
Natalie Ladner
Innovation &Continuous
Improvement Manager
Wendy Walters
Support ServicesManager
Ross Wheatland
CommunityHealth
Manager
Ngareta Melgren
Acute UnitManager
Hopetoun UnitManager
Qualityand RiskOfficer
FinanceTeam Leader
YarriambiackLodge UnitManager
Beulah UnitManager
Education andQualityOfficer
MaintenanceManager
Finance Contractor
NursePractitioner
HopetounAdministration
Cognitive Rehabilitative
Therapist
AdministrationTeam Leader
Allied Health Team
ClinicalSupportNurse
CancerSupportNurse
MemorySupportNurse
IT Contractor
CommunityNurses
InfectionControlNurse
Events &Marketing
Coordinator
EnvironmentalService
Supervisor
RadiologyContractor
Aged CareEvents
& VolunteersCoordinator
ACFICoordinator
Director of Medical Services
Dr Alan Wolff
Consultantsand
PhD student
Chief Executive Officer
Catherine Morley
PAG CoordinatorW’Beal
Executive Assistant
Sharon Murphy
Board ofManagement
Warracknabeal
VictoriaVictoria
MalleeWimmera
MalleeWimmera
HopetounBeulah
District NursingTeam Leader
Rural Northwest Health - Annual Report 20156 7Rural Northwest Health - Annual Report 2015
1999
2001
2008
Rural Northwest Health wascreated from the amalgamationof Warracknabeal DistrictHospital (including JR & AELandt Nursing Home),Hopetoun Bush Nursing Hospital(including Cumming House)and Beulah Pioneers BushNursing Hospital
The two low care facilities —Corrong Village at Hopetounand Landt Hostel atWarracknabeal weresubsequently amalgamatedwith RNH
To modernise Rural NorthwestHealth’s facilities, newcampuses have been constructedat Hopetoun and Warracknabeal.Hopetoun’s new campus andambulance station facilitieswere officially opened inJuly 2008.
Stage One of Warracknabeal’sredevelopment, including newintegrated aged facilities,administration and supportservices, were officiallyopened by the VictorianPremier in October 2008.
OUR HISTORY
About our Organisation Organisational Structure
RNH is located in the Wimmera Mallee region of Victoria in the Yarriambiack Shire and serves a population of around 7,082 across the communities of Warracknabeal, Hopetoun and Beulah.
Rural Northwest Health was established in 1999 under the Health Services Act 1994.
The responsible Ministers during the reporting period were:The Honourable Jill Hennessy MLA, Minster for Health, Minister for Ambulance Services - 4 December 2014 to 30 June 2015
Martin Foley MLA, Minister for Mental Health - 4 December 2014 to 30 June 2015
The Honourable David Davis MLC, Minister for Health, Minister for Ageing - 1 July 2014 to 3 December 2014
The Honourable Mary Wooldridge MLA, Minister for Mental Health - 1 July 2014 to 3 December 2014
This Annual Report should be read in conjunction with our 2014–15 Quality of Care Report. Both documents are available on our website and from all our sites.
After Hours ServiceGPs and nursing staff provide an After Hours On Call service 24 hours 7 days per week at Warracknabeal and Hopetoun
Acute CareRNH has 12 acute beds at the Warracknabeal Campus and 4 acute beds at the Hopetoun Campus. Both campuses provide urgent care services• Acute medical• Palliative Care• Pharmacy• Pathology services• Accident and urgent care
Aged CareRNH has 60 aged care places at the Warracknabeal Campus and 30 aged care places at the Hopetoun Campus• High and low care accommodation • Respite care• Memory Support Unit (Warracknabeal)• Lifestyle program• Cognitive Rehabilitative Therapist
Medical Imaging (Warracknabeal)• X-ray • Ultrasound
SpecialtiesEar, Nose, Throat and Cardiology
Community HealthCommunity and Allied Health services are provided across the three campuses at Warracknabeal, Beulah and Hopetoun • Ante Natal and Domiciliary midwifery services• Asthma education and health plan development• Cancer Resource Nurse• Community Health nurse• Day Program (Warracknabeal and Beulah)• Diabetes education and health plan development• District nursing services• Health education and promotion• Hospital to home• Memory Support Nurse• Post-acute care
Allied Health• Counselling• Dietetics• Exercise physiology• Massage Therapy• Occupational therapy• Physiotherapy• Podiatry• Social Work• Speech pathology
Support Services• Carer support services• Volunteer program
WarracknabealCampus Manager
Wendy James
Hopetoun/BeulahCampus Manager
Natalie Ladner
Innovation &Continuous
Improvement Manager
Wendy Walters
Support ServicesManager
Ross Wheatland
CommunityHealth
Manager
Ngareta Melgren
Acute UnitManager
Hopetoun UnitManager
Qualityand RiskOfficer
FinanceTeam Leader
YarriambiackLodge UnitManager
Beulah UnitManager
Education andQualityOfficer
MaintenanceManager
Finance Contractor
NursePractitioner
HopetounAdministration
Cognitive Rehabilitative
Therapist
AdministrationTeam Leader
Allied Health Team
ClinicalSupportNurse
CancerSupportNurse
MemorySupportNurse
IT Contractor
CommunityNurses
InfectionControlNurse
Events &Marketing
Coordinator
EnvironmentalService
Supervisor
RadiologyContractor
Aged CareEvents
& VolunteersCoordinator
ACFICoordinator
Director of Medical Services
Dr Alan Wolff
Consultantsand
PhD student
Chief Executive Officer
Catherine Morley
PAG CoordinatorW’Beal
Executive Assistant
Sharon Murphy
Board ofManagement
Warracknabeal
VictoriaVictoria
MalleeWimmera
MalleeWimmera
HopetounBeulah
District NursingTeam Leader
Rural Northwest Health - Annual Report 20156 7Rural Northwest Health - Annual Report 2015
Board of Management (continued)
The Board of Management consists of persons appointed by the Minister for Health under the Act who are empowered to provide strategic direction for the organisation. Whilst the board provide directions for the Agency and determines what must be done, the responsibility for determining how services are delivered is invested in the Chief Executive Officer.
The functions of the board of a public hospital are• to oversee the management of the health service; • to set the strategic plan and vision for the health service; and• to ensure that the services provided by the hospital comply with the requirements of this Act and the objects of the hospital.
The board of a public hospital has such powers as are necessary to enable it to carry out its functions, including the power to make, amend or revoke by-laws.
This year we farewell Patty Kinnersly who has finished her term and who will continue to support us as a board member of Ballarat Health Service. We thank Patty for her contribution to Rural Northwest Health over the last three years.We welcome new board member, Sally Gebert who will commence her three year appointment on 1 July 2015. Sally will bring a new perspective to the board as she looks at our customer service, food and welcoming style and presentation as well as a desire to support us to be the best we can possibly be.
Board Chair: Leo Casey - First appointment: 25 September 2007Deputy Chairman: Matthew Richardson - First appointment: 7 February 2012MEMBERS: Brian Hewitt - First appointment: 1 July 2008 Glenda Hewitt - First appointment: 1 July 2010 Janette McCabe - First appointment: 1 July 2012 Patricia Kinnersly - First appointment: 1 July 2012 Carolyn Morcom - First appointment: 1 July 2012
Board of Management
Executive Team
Board Committees
Finance Audit and Compliance Committee (FACC)
The FACC ensure that Rural Northwest Health reviews and evaluates a range of financial, legislative and compliance data, and informa-tion collected across the organisation. The Committee meets quarterly to monitor performance against audit and risk.
Review and Remuneration Committee
Reviews performance of the Chief Executive Officer (CEO) and contractual requirements on an annual basis and makes recommenda-tions on remuneration levels. The committee meets quarterly with the CEO to review the CEO’s performance and provide support.
Clinical Governance Committee
The Clinical Governance Committee aims to ensure that the community receives high quality and safe care close to home, and that Rural Northwest Health is committed to the constant improvement of all clinical and care services. The committee meets quarterly to review and analyse information detailing the clinical care activities undertaken at RNH.
Staff Health and Wellbeing Committee
Rural Northwest Health aims to provide a safe, fair and happy workplace for all that work and visit our workplace. The Staff Health and Wellbeing Committee meet quarterly to review and evaluate a range of data, ideas and information collected across the organisation strategically regarding staff health and wellbeing and to develop and improve Rural Northwest Health’s organisational culture.
Hopetoun/Beulah Reference Group (HBRG)
The Committee meets quarterly to review comments, suggestions and concerns from the community members about access and improving the availability and quality of the service, program or facility provided at the campuses.
Community Action Research Group (CARG) Governance Committee
The partnership between the LaTrobe Rural Health School and RNH involves a three year project to engage with local communities. The term community is used in its broadest sense and includes health providers, the non-health sector, consumers and the wider group of citizens. The project supports the facilitation, production and exchange of information between all stakeholders to generate sustainable health services and approaches that positively impact on the health of the community.
Other Relevant Committees
Project Control Group
The Project Control Group held XXX meetings to oversee management and construction of RNH’s Stage 2 Redevelopment at the Warracknabeal Campus.
Medication Advisory Committee (MAC)
The committee reviews and analyses information detailing the prescribing, dispensing, administrating and monitoring of medication management at RNH. When service gaps and risks are identified, the committee ensures appropriate actions are taken.
Chief Executive Officer - Catherine Morley
Support Services Manager - Ross Wheatland
Warracknabeal Campus Manager - Wendy James
Hopetoun Campus Manager – Natalie Ladner
Community Health Manager – Ngareta Melgren
Innovations and Continuous Improvement Manager – Wendy WaltersBack row (from left): Janette McCabe, Patricia Kinnersly, Glenda Hewitt, Carolyn Morcom
Front row (from left): Matthew Richardson, Leo Casey, Brian Hewitt
Rural Northwest Health - Annual Report 20158 9Rural Northwest Health - Annual Report 2015
Board of Management (continued)
The Board of Management consists of persons appointed by the Minister for Health under the Act who are empowered to provide strategic direction for the organisation. Whilst the board provide directions for the Agency and determines what must be done, the responsibility for determining how services are delivered is invested in the Chief Executive Officer.
The functions of the board of a public hospital are• to oversee the management of the health service; • to set the strategic plan and vision for the health service; and• to ensure that the services provided by the hospital comply with the requirements of this Act and the objects of the hospital.
The board of a public hospital has such powers as are necessary to enable it to carry out its functions, including the power to make, amend or revoke by-laws.
This year we farewell Patty Kinnersly who has finished her term and who will continue to support us as a board member of Ballarat Health Service. We thank Patty for her contribution to Rural Northwest Health over the last three years.We welcome new board member, Sally Gebert who will commence her three year appointment on 1 July 2015. Sally will bring a new perspective to the board as she looks at our customer service, food and welcoming style and presentation as well as a desire to support us to be the best we can possibly be.
Board Chair: Leo Casey - First appointment: 25 September 2007Deputy Chairman: Matthew Richardson - First appointment: 7 February 2012MEMBERS: Brian Hewitt - First appointment: 1 July 2008 Glenda Hewitt - First appointment: 1 July 2010 Janette McCabe - First appointment: 1 July 2012 Patricia Kinnersly - First appointment: 1 July 2012 Carolyn Morcom - First appointment: 1 July 2012
Board of Management
Executive Team
Board Committees
Finance Audit and Compliance Committee (FACC)
The FACC ensure that Rural Northwest Health reviews and evaluates a range of financial, legislative and compliance data, and informa-tion collected across the organisation. The Committee meets quarterly to monitor performance against audit and risk.
Review and Remuneration Committee
Reviews performance of the Chief Executive Officer (CEO) and contractual requirements on an annual basis and makes recommenda-tions on remuneration levels. The committee meets quarterly with the CEO to review the CEO’s performance and provide support.
Clinical Governance Committee
The Clinical Governance Committee aims to ensure that the community receives high quality and safe care close to home, and that Rural Northwest Health is committed to the constant improvement of all clinical and care services. The committee meets quarterly to review and analyse information detailing the clinical care activities undertaken at RNH.
Staff Health and Wellbeing Committee
Rural Northwest Health aims to provide a safe, fair and happy workplace for all that work and visit our workplace. The Staff Health and Wellbeing Committee meet quarterly to review and evaluate a range of data, ideas and information collected across the organisation strategically regarding staff health and wellbeing and to develop and improve Rural Northwest Health’s organisational culture.
Hopetoun/Beulah Reference Group (HBRG)
The Committee meets quarterly to review comments, suggestions and concerns from the community members about access and improving the availability and quality of the service, program or facility provided at the campuses.
Community Action Research Group (CARG) Governance Committee
The partnership between the LaTrobe Rural Health School and RNH involves a three year project to engage with local communities. The term community is used in its broadest sense and includes health providers, the non-health sector, consumers and the wider group of citizens. The project supports the facilitation, production and exchange of information between all stakeholders to generate sustainable health services and approaches that positively impact on the health of the community.
Other Relevant Committees
Project Control Group
The Project Control Group held XXX meetings to oversee management and construction of RNH’s Stage 2 Redevelopment at the Warracknabeal Campus.
Medication Advisory Committee (MAC)
The committee reviews and analyses information detailing the prescribing, dispensing, administrating and monitoring of medication management at RNH. When service gaps and risks are identified, the committee ensures appropriate actions are taken.
Chief Executive Officer - Catherine Morley
Support Services Manager - Ross Wheatland
Warracknabeal Campus Manager - Wendy James
Hopetoun Campus Manager – Natalie Ladner
Community Health Manager – Ngareta Melgren
Innovations and Continuous Improvement Manager – Wendy WaltersBack row (from left): Janette McCabe, Patricia Kinnersly, Glenda Hewitt, Carolyn Morcom
Front row (from left): Matthew Richardson, Leo Casey, Brian Hewitt
Rural Northwest Health - Annual Report 20158 9Rural Northwest Health - Annual Report 2015
Statement of Priorities (SoP) Statement of Priorities (SoP)
SoP Part A:
Strategic Priorities for 2014-15
SoP Part A purpose: identifies the Victorian Government’s priorities and policy directions in the Victorian Health Priorities Framework 2012-22.
Priorities: Each SoP identifies how the individual health service will contribute to the achievement of the Government’s seven key priorities in 2014-15, through the articulation of specific Actions and Deliverables.
Outcomes: For purposes of the Annual Report, health services are required to report on the outcome of each deliverable articulated in the SoP.
Priority Action Deliverable Outcome1 Developing a
system that is responsive to people’s needs
-
The Statement of Priorities is the key document of accountability between the Department of Health and Health Services. The agreement is signed by the Minister for Health, Secretary or relevant Director dependant on the health service and the health service’s Board Chair.
Mandatory:• Develop an organisational policy for the provision of safe, high quality end of life care in acute and subacute settings with clear guidance about the role of, and access to, specialist palliative care.
• Progress partner-ships with other service providers to improve outcomes for regional and rural patients
In 2014-15 Rural Northwest Health staff will continue to engage with community members to develop their own advanced care directives and review them every six months.By March 2015 Rural Northwest Health will have developed an organisational protocol and audit tool that supports advanced care directives to be followed by staff and appropriate referrals made to specialist palliative care services in a timely and responsive manner.
By June 2015 Rural Northwest Health as a member of the Wimmera Southern Mallee Health Alliance will have contributed to the unplanned presenta-tions steering committee and working groups and implemented agreed priorities and actions as determined by the steering committee.
Rural Northwest Health has held a number of forums across the catchment area to support community members to understand what advanced care directives are and who they can access at the health service to assist them with the development of their directives. A brochure has been developed for the service we offer and this is available at venues throughout the shire for community members to access. We have continued to work with the General Practitioners to implement strategies to support all community members to have advanced care directives in place and understand the importance of reviewing them bi annually. Rural Northwest Health has received funding from Decision Assist to allow the full implementation and development of link nurses to support effective responsive action for advanced care directives and palliative care. An improvement project has been implemented which will be completed in December 2015. The protocol and audit tool have been developed and staff have undertaken specialised training in a palliative approach. The regional palliative care service is involved in the improvement project and an active member of the steering committee.
Rural Northwest Health chairs the unplanned presentations steering committee and are active members in the cardiac rehabilitation, consumer engagement and workforce projects. Rural Northwest Health attend working groups and governance meetings as required. Rural Northwest Health has communicated all activities of the Wimmera Southern Mallee Health Alliance by developing and distributing the quarterly newsletter.
Mandatory: • Use consumer feedback to improve person and family centred care, health service practice and patient experience.
Improving every Victorian’s health status and experiences
By March 2015 Rural Northwest Health will have recruited orientated and supported a consumer representative to be a Clinical Governance committee member.By June 2015 Rural Northwest Health will have three systems in place to ensure that the patient experience and feedback is heard and presented at the Board of Management meeting monthly
Rural Northwest Health reviewed the consumer engage-ment protocol and decided that by having one consumer on the Clinical Governance committee, we would be limiting the community member’s ability to engage with the Board of Management to ensure that the community’s needs and feedback is heard. Community members, clients, residents and families have the opportunity to meet with the Board of Management and executive staff through quarterly lunches and morning teas and the Hopetoun Beulah Reference Group. This is working well and the Board of Management and executive team have received a number of suggestions for improvement.
Expanding service, workforce and system capacity
2
3
• Support local implementation of the Victorian Health and Wellbeing Plan through 2011-2015 through collaboration with key partners such as Local Government, Medicare Locals, community health services and other agencies (for example Women’s Health Victoria and VACCHO)
By June 2015 Rural Northwest Health will have engaged with the local shire to have improved levels of wellbeing and social connection through the community garden projects at Warracknabeal, Hopetoun and Beulah and on other prioritised active service model plans.
Rural Northwest Health have introduced three systems. The executive team are rostered to present a client/resident story to the Board of Management monthly. This system allows all departments of the health service to allow their story to be heard. The Board of Management ask themselves monthly at the end of their meeting; how have they ensured that they have heard the voice of the community member in their decision making.The suggestions raised at the engagement forums are collated and actioned by the appropriate executive team member. This action is feedback at the next engagement forum to demonstrate to community members that their suggestions are valid and will be actioned where possible.
Rural Northwest Health provided the community gardens with access to a Project Manager who has supported the community groups to set up a governance group, apply for funding and commence the projects. The Warracknabeal and Beulah groups have been very successful with accessing funding and support and the community gardens are developing at a fast and furious pace. The Hopetoun community garden group has applied for funding and Rural Northwest Health are hopeful that the allocation of funds will allow the group to commence on their plan.
By June 2015 Rural Northwest Health will have engaged with the Medicare Local and the new Primary Care Network to improve and maintain the provision of allied community health services across Warrack-nabeal Hopetoun and Beulah
Rural Northwest Health have worked hard to develop a relationship with the new Primary Health Network and meetings have been held with the Board of Management, CEO and executive staff to commence the development of a sustainable community member outcome focused partnership. The Primary Health Network will join with Deakin University and health providers in the Yarriambiack shire to deliver a research project to reduce the number of community members who are obese.
By June 2015 Rural Northwest Health to have implemented a workforce immunisation plan for existing and new staff that aligns with Australian infection control and immunisation guidelines
By May 2015 Rural Northwest Health to run a mandatory staff event to support employees to have easy access to flu vaccina-tion at work.
By June 2015 Rural Northwest Health will have implemented policies and protocols to allow RIPERN nurses to practice safely and communicated the expanded role to the VMO’s, community members and team members to ensure that the RIPERN candidates succeed in their role. By June 2015 Rural Northwest Health will have implemented agreed strategies as documented in the Wimmera Southern Mallee Health Alliance plan to expand and improve workforce capacity.
Rural Northwest Health held the staff safari in May. 209 staff attended the sessions and were updated on a number of initiatives and were supported to have the flu vaccination. 85% of staff took up this option at the staff safari. Immuni-sation sessions were held for staff that did not attend the staff safari.
Rural Northwest Health have developed and endorsed RIPERN policies and protocols in preparation for the endorsement of the staff that are undertaking the RIPERN training. The new role has been discussed at the community road shows held in June to allow community members to understand how the role will work. The role has been discussed at the Director of Medical Services and General Practitioners and clinical executive staff.Rural Northwest Health have worked with the Wimmera Southern Mallee Health Alliance which has successfully received funding for the development of a model for a Nurse Practitioner Aged Care, a specialised physiotherapy role for arthritis. Work is continuing to develop a short video to attract potential health professionals to the region.
Mandatory: • Develop and implement a workforce immunisa-tion plan that includes pre-employment screening and immunisation assessment for existing staff that work in high risk areas in order to align with Australian infection control and immunisation guidelines.
• Optimise workforce productivity through identification and implementation of workforce models that enhance individual and team capacity and support flexibility
Rural Northwest Health - Annual Report 201510 11Rural Northwest Health - Annual Report 2015
Statement of Priorities (SoP) Statement of Priorities (SoP)
SoP Part A:
Strategic Priorities for 2014-15
SoP Part A purpose: identifies the Victorian Government’s priorities and policy directions in the Victorian Health Priorities Framework 2012-22.
Priorities: Each SoP identifies how the individual health service will contribute to the achievement of the Government’s seven key priorities in 2014-15, through the articulation of specific Actions and Deliverables.
Outcomes: For purposes of the Annual Report, health services are required to report on the outcome of each deliverable articulated in the SoP.
Priority Action Deliverable Outcome1 Developing a
system that is responsive to people’s needs
-
The Statement of Priorities is the key document of accountability between the Department of Health and Health Services. The agreement is signed by the Minister for Health, Secretary or relevant Director dependant on the health service and the health service’s Board Chair.
Mandatory:• Develop an organisational policy for the provision of safe, high quality end of life care in acute and subacute settings with clear guidance about the role of, and access to, specialist palliative care.
• Progress partner-ships with other service providers to improve outcomes for regional and rural patients
In 2014-15 Rural Northwest Health staff will continue to engage with community members to develop their own advanced care directives and review them every six months.By March 2015 Rural Northwest Health will have developed an organisational protocol and audit tool that supports advanced care directives to be followed by staff and appropriate referrals made to specialist palliative care services in a timely and responsive manner.
By June 2015 Rural Northwest Health as a member of the Wimmera Southern Mallee Health Alliance will have contributed to the unplanned presenta-tions steering committee and working groups and implemented agreed priorities and actions as determined by the steering committee.
Rural Northwest Health has held a number of forums across the catchment area to support community members to understand what advanced care directives are and who they can access at the health service to assist them with the development of their directives. A brochure has been developed for the service we offer and this is available at venues throughout the shire for community members to access. We have continued to work with the General Practitioners to implement strategies to support all community members to have advanced care directives in place and understand the importance of reviewing them bi annually. Rural Northwest Health has received funding from Decision Assist to allow the full implementation and development of link nurses to support effective responsive action for advanced care directives and palliative care. An improvement project has been implemented which will be completed in December 2015. The protocol and audit tool have been developed and staff have undertaken specialised training in a palliative approach. The regional palliative care service is involved in the improvement project and an active member of the steering committee.
Rural Northwest Health chairs the unplanned presentations steering committee and are active members in the cardiac rehabilitation, consumer engagement and workforce projects. Rural Northwest Health attend working groups and governance meetings as required. Rural Northwest Health has communicated all activities of the Wimmera Southern Mallee Health Alliance by developing and distributing the quarterly newsletter.
Mandatory: • Use consumer feedback to improve person and family centred care, health service practice and patient experience.
Improving every Victorian’s health status and experiences
By March 2015 Rural Northwest Health will have recruited orientated and supported a consumer representative to be a Clinical Governance committee member.By June 2015 Rural Northwest Health will have three systems in place to ensure that the patient experience and feedback is heard and presented at the Board of Management meeting monthly
Rural Northwest Health reviewed the consumer engage-ment protocol and decided that by having one consumer on the Clinical Governance committee, we would be limiting the community member’s ability to engage with the Board of Management to ensure that the community’s needs and feedback is heard. Community members, clients, residents and families have the opportunity to meet with the Board of Management and executive staff through quarterly lunches and morning teas and the Hopetoun Beulah Reference Group. This is working well and the Board of Management and executive team have received a number of suggestions for improvement.
Expanding service, workforce and system capacity
2
3
• Support local implementation of the Victorian Health and Wellbeing Plan through 2011-2015 through collaboration with key partners such as Local Government, Medicare Locals, community health services and other agencies (for example Women’s Health Victoria and VACCHO)
By June 2015 Rural Northwest Health will have engaged with the local shire to have improved levels of wellbeing and social connection through the community garden projects at Warracknabeal, Hopetoun and Beulah and on other prioritised active service model plans.
Rural Northwest Health have introduced three systems. The executive team are rostered to present a client/resident story to the Board of Management monthly. This system allows all departments of the health service to allow their story to be heard. The Board of Management ask themselves monthly at the end of their meeting; how have they ensured that they have heard the voice of the community member in their decision making.The suggestions raised at the engagement forums are collated and actioned by the appropriate executive team member. This action is feedback at the next engagement forum to demonstrate to community members that their suggestions are valid and will be actioned where possible.
Rural Northwest Health provided the community gardens with access to a Project Manager who has supported the community groups to set up a governance group, apply for funding and commence the projects. The Warracknabeal and Beulah groups have been very successful with accessing funding and support and the community gardens are developing at a fast and furious pace. The Hopetoun community garden group has applied for funding and Rural Northwest Health are hopeful that the allocation of funds will allow the group to commence on their plan.
By June 2015 Rural Northwest Health will have engaged with the Medicare Local and the new Primary Care Network to improve and maintain the provision of allied community health services across Warrack-nabeal Hopetoun and Beulah
Rural Northwest Health have worked hard to develop a relationship with the new Primary Health Network and meetings have been held with the Board of Management, CEO and executive staff to commence the development of a sustainable community member outcome focused partnership. The Primary Health Network will join with Deakin University and health providers in the Yarriambiack shire to deliver a research project to reduce the number of community members who are obese.
By June 2015 Rural Northwest Health to have implemented a workforce immunisation plan for existing and new staff that aligns with Australian infection control and immunisation guidelines
By May 2015 Rural Northwest Health to run a mandatory staff event to support employees to have easy access to flu vaccina-tion at work.
By June 2015 Rural Northwest Health will have implemented policies and protocols to allow RIPERN nurses to practice safely and communicated the expanded role to the VMO’s, community members and team members to ensure that the RIPERN candidates succeed in their role. By June 2015 Rural Northwest Health will have implemented agreed strategies as documented in the Wimmera Southern Mallee Health Alliance plan to expand and improve workforce capacity.
Rural Northwest Health held the staff safari in May. 209 staff attended the sessions and were updated on a number of initiatives and were supported to have the flu vaccination. 85% of staff took up this option at the staff safari. Immuni-sation sessions were held for staff that did not attend the staff safari.
Rural Northwest Health have developed and endorsed RIPERN policies and protocols in preparation for the endorsement of the staff that are undertaking the RIPERN training. The new role has been discussed at the community road shows held in June to allow community members to understand how the role will work. The role has been discussed at the Director of Medical Services and General Practitioners and clinical executive staff.Rural Northwest Health have worked with the Wimmera Southern Mallee Health Alliance which has successfully received funding for the development of a model for a Nurse Practitioner Aged Care, a specialised physiotherapy role for arthritis. Work is continuing to develop a short video to attract potential health professionals to the region.
Mandatory: • Develop and implement a workforce immunisa-tion plan that includes pre-employment screening and immunisation assessment for existing staff that work in high risk areas in order to align with Australian infection control and immunisation guidelines.
• Optimise workforce productivity through identification and implementation of workforce models that enhance individual and team capacity and support flexibility
Rural Northwest Health - Annual Report 201510 11Rural Northwest Health - Annual Report 2015
Statement of Priorities (SoP) Statement of Priorities (SoP)
4
-
• Reduce Health Service administra-tive costs
To work with the region’s health services to develop a sustainable electronic payroll solution implementation planBy June 2015 a workforce redesign action plan will be developed for the redesign of the administration team that will be possible with the completion of Stage 2 at the Warracknabeal campus
Rural Northwest Health has worked with Bendigo Health Service, Wimmera Health Care Group and Edenhope District Memorial Hospital to introduce the electronic payroll system Kronos. This system will be fully implemented by July 9th 2015.Rural Northwest Health have developed a new roster and position descriptions that will reflect the needs of Rural Northwest Health with the finalisation of stage 2 in March 2016. The building work will allow a staged approach to these changes with the first change occurring in June 2015 and being completed by December 2015. The final roster will allow for administration support to be available 7 days a week and extended hours Monday to Friday.
• Drive improved health outcomes through a strong focus on patient centred care in planning, delivery and evaluation of services, and the development of new models for putting patients first
Implementing continuous improvements and innovation
Increasing the system’s financial sustainability and productivity
By June 2015 Rural Northwest Health will have undertaken a detailed strategic planning process and will ensure that the voice of the consumer is included in the development of the plan.
Rural Northwest Health will continue to expand and embed the capability model of care in aged and community care and expand the cognitive rehabilitation therapist role to the acute unit.
Rural Northwest Health will work with the Director of Medical Services and the Clinical Governance committee to introduce an evidence based clinical governance model that is transferable to other health services
Rural Northwest Health has appointed a consultant who has worked with the Board of Management, Executive, staff, stakeholders and community members to assist with the development of a new strategic plan. Community focus groups were held across the region and feedback from these sessions was included in the planning process.
Rural Northwest Health were very pleased to work with NARI and for the ABLE model that they had developed be documented in the Australian Geriatric Nursing Journal. The therapist role was advertised at the community road shows held in June and the feedback from community members that have used the service is positive. A one day training package has been developed for acute staff and we are continuing to monitor the staff’s understanding of the ABLE model in the acute setting.
Rural Northwest Health have undertaken an assessment against an evidence based clinical governance and implemented the Board of Management hearing a client/resident story monthly, developing a quality and safety newsletter, ensuring that position descriptions included quality and safety key performance indicators, a review of the quality and safety plan and audit protocol, the develop-ment of an overarching executive governance report, the appointment of a board of management member with clinical expertise and reviewing a number of key policies and protocols. This review has been documented and the Director of Medical Services is working with Rural Northwest Health to share our actions and progress.
• Utilise telehealth to better connect service providers and consumers to appropriate and timely services
Improving utilisation of e-health and communications technology.
5
Rural Northwest Health will ensure that Warracknabeal community members have access to information about the stage 2 redevelopment and areas that they can be involved in to ensure that the outcome is consumer focused and the building meets the communities needs.
The community members have been involved in decisions about the signage, the gardens, the chairs and furniture and the purpose and use of the quiet room that is the community health area. Regular media releases have been made about the progress and Rural Northwest Health have had the plans and photos on display in the main street of Warrack-nabeal for community members to review.
Rural Northwest Health will work with the Wimmera Southern Mallee Health Alliance and implement the telehealth cardiac rehabilita-tion program by June 30th 2015.
Rural Northwest Health will work with the Wimmera Southern Mallee Health Alliance to implement the prioritised unplanned presentations improvement projects including the use of telemedicine.
Rural Northwest Health, along with Wimmera Health Care Group, have been the pilot site for the telehealth cardiac rehabilitation program. Great feedback has been received from the community members utilising the service, the staff members involved and the doctors and specialists. The success of the program has meant that the Wimmera Southern Mallee Health Alliance are looking for other rehabilitation programs that could be introduced.
The Unplanned presentations working group have been working hard to implement strategies identified in 2014. The main work undertaken this year has focused on understand-ing the data and what are the critical issues that the Wimmera Southern Mallee Health Alliance need to improve.
Mandatory: • Undertake an annual board assessment to identify and develop board capability to ensure all board members are well equipped to effectively discharge their responsibilities.
• Demonstrate a strategic focus and commitment to aged care by responding to community need as well as the Common-wealth Living Longer Living Better reforms.
Increasing accountability & transparency
By March 2015 the Board of Management will have undertaken a board assessment and developed an action plan to address any identified opportunities for improvements.
Rural Northwest Health will ensure that community members are aware of what residential and community aged services are offered at Rural Northwest Health and work with partners to support community members to access appropriate services close to home.
The Board of Management undertook an internal board assessment and from that assessment the following actions were undertaken.• The development of a Board Assessment protocol that states that an external audit will be undertaken tri annually• The development of position descriptions for Board of Management members, Board chair and Board vice chair• The development of a Board of Management orientation protocol, and • Board of Management members committing to undertake training offered in the region for Board of Management members.
Rural Northwest Health have undertaken a review of the webpage, the information available regarding aged care services and worked with partners and community members to ensure that the documentation available is what they wish to find easily. With the opening of the new aged care wing in June, a marketing and media release has been undertaken to support the 5 closed beds, due to the building works, to be filled as quickly as possible.
6
6
7
Performance Priorities
Operating Result Target 2014-15 actualsAnnual Operating result ($m) 0.23 0.946
Asset Management Target 2014-15 actuals
Creditors <60 days 49 days
Debtors <60 days 33 days
SoP Part B:
0.23
Basic asset management plan Full compliance Full compliance
Patient experience and outcomes Target 2014-15 actuals
Governance, leadership and culture Target 2014-15 actuals
Safety and Quality Target 2014-15 actuals
Victorian Healthcare Experience Survey Full compliance Not achieved
Patient safety culture 80% 90%
Health Service accreditation
Residential aged care accreditation
Cleaning standards
Cleaning standards (AQL-A)
Full compliance
Full compliance
Full compliance
Cleaning standards (AQL-B)
Cleaning standards (AQL-C)
Submission of data to VICNISS
Hand hygiene (rate) – quarter 2
Full compliance
Hand hygiene (rate) – quarter 3
Hand hygiene (rate) – quarter 4
Health care worker immunisation – influenza
Safety and quality performance
85%
85%
90%
77%
80%
75%
75%
Full compliance
Full compliance
Full compliance
Full compliance
N/A
N/A
N/A
82.6%
96%
71.4%
75.9%
(1) The Victorian Healthcare Experience Survey (VHES) was formerly known as the Victorian Health Experience Measurement Instrument (VHEMI).(2) VICNISS is the Victorian Hospital Acquired Infection Surveillance System.
Financial sustainability performance
Rural Northwest Health - Annual Report 201512 13Rural Northwest Health - Annual Report 2015
Statement of Priorities (SoP) Statement of Priorities (SoP)
4
-
• Reduce Health Service administra-tive costs
To work with the region’s health services to develop a sustainable electronic payroll solution implementation planBy June 2015 a workforce redesign action plan will be developed for the redesign of the administration team that will be possible with the completion of Stage 2 at the Warracknabeal campus
Rural Northwest Health has worked with Bendigo Health Service, Wimmera Health Care Group and Edenhope District Memorial Hospital to introduce the electronic payroll system Kronos. This system will be fully implemented by July 9th 2015.Rural Northwest Health have developed a new roster and position descriptions that will reflect the needs of Rural Northwest Health with the finalisation of stage 2 in March 2016. The building work will allow a staged approach to these changes with the first change occurring in June 2015 and being completed by December 2015. The final roster will allow for administration support to be available 7 days a week and extended hours Monday to Friday.
• Drive improved health outcomes through a strong focus on patient centred care in planning, delivery and evaluation of services, and the development of new models for putting patients first
Implementing continuous improvements and innovation
Increasing the system’s financial sustainability and productivity
By June 2015 Rural Northwest Health will have undertaken a detailed strategic planning process and will ensure that the voice of the consumer is included in the development of the plan.
Rural Northwest Health will continue to expand and embed the capability model of care in aged and community care and expand the cognitive rehabilitation therapist role to the acute unit.
Rural Northwest Health will work with the Director of Medical Services and the Clinical Governance committee to introduce an evidence based clinical governance model that is transferable to other health services
Rural Northwest Health has appointed a consultant who has worked with the Board of Management, Executive, staff, stakeholders and community members to assist with the development of a new strategic plan. Community focus groups were held across the region and feedback from these sessions was included in the planning process.
Rural Northwest Health were very pleased to work with NARI and for the ABLE model that they had developed be documented in the Australian Geriatric Nursing Journal. The therapist role was advertised at the community road shows held in June and the feedback from community members that have used the service is positive. A one day training package has been developed for acute staff and we are continuing to monitor the staff’s understanding of the ABLE model in the acute setting.
Rural Northwest Health have undertaken an assessment against an evidence based clinical governance and implemented the Board of Management hearing a client/resident story monthly, developing a quality and safety newsletter, ensuring that position descriptions included quality and safety key performance indicators, a review of the quality and safety plan and audit protocol, the develop-ment of an overarching executive governance report, the appointment of a board of management member with clinical expertise and reviewing a number of key policies and protocols. This review has been documented and the Director of Medical Services is working with Rural Northwest Health to share our actions and progress.
• Utilise telehealth to better connect service providers and consumers to appropriate and timely services
Improving utilisation of e-health and communications technology.
5
Rural Northwest Health will ensure that Warracknabeal community members have access to information about the stage 2 redevelopment and areas that they can be involved in to ensure that the outcome is consumer focused and the building meets the communities needs.
The community members have been involved in decisions about the signage, the gardens, the chairs and furniture and the purpose and use of the quiet room that is the community health area. Regular media releases have been made about the progress and Rural Northwest Health have had the plans and photos on display in the main street of Warrack-nabeal for community members to review.
Rural Northwest Health will work with the Wimmera Southern Mallee Health Alliance and implement the telehealth cardiac rehabilita-tion program by June 30th 2015.
Rural Northwest Health will work with the Wimmera Southern Mallee Health Alliance to implement the prioritised unplanned presentations improvement projects including the use of telemedicine.
Rural Northwest Health, along with Wimmera Health Care Group, have been the pilot site for the telehealth cardiac rehabilitation program. Great feedback has been received from the community members utilising the service, the staff members involved and the doctors and specialists. The success of the program has meant that the Wimmera Southern Mallee Health Alliance are looking for other rehabilitation programs that could be introduced.
The Unplanned presentations working group have been working hard to implement strategies identified in 2014. The main work undertaken this year has focused on understand-ing the data and what are the critical issues that the Wimmera Southern Mallee Health Alliance need to improve.
Mandatory: • Undertake an annual board assessment to identify and develop board capability to ensure all board members are well equipped to effectively discharge their responsibilities.
• Demonstrate a strategic focus and commitment to aged care by responding to community need as well as the Common-wealth Living Longer Living Better reforms.
Increasing accountability & transparency
By March 2015 the Board of Management will have undertaken a board assessment and developed an action plan to address any identified opportunities for improvements.
Rural Northwest Health will ensure that community members are aware of what residential and community aged services are offered at Rural Northwest Health and work with partners to support community members to access appropriate services close to home.
The Board of Management undertook an internal board assessment and from that assessment the following actions were undertaken.• The development of a Board Assessment protocol that states that an external audit will be undertaken tri annually• The development of position descriptions for Board of Management members, Board chair and Board vice chair• The development of a Board of Management orientation protocol, and • Board of Management members committing to undertake training offered in the region for Board of Management members.
Rural Northwest Health have undertaken a review of the webpage, the information available regarding aged care services and worked with partners and community members to ensure that the documentation available is what they wish to find easily. With the opening of the new aged care wing in June, a marketing and media release has been undertaken to support the 5 closed beds, due to the building works, to be filled as quickly as possible.
6
6
7
Performance Priorities
Operating Result Target 2014-15 actualsAnnual Operating result ($m) 0.23 0.946
Asset Management Target 2014-15 actuals
Creditors <60 days 49 days
Debtors <60 days 33 days
SoP Part B:
0.23
Basic asset management plan Full compliance Full compliance
Patient experience and outcomes Target 2014-15 actuals
Governance, leadership and culture Target 2014-15 actuals
Safety and Quality Target 2014-15 actuals
Victorian Healthcare Experience Survey Full compliance Not achieved
Patient safety culture 80% 90%
Health Service accreditation
Residential aged care accreditation
Cleaning standards
Cleaning standards (AQL-A)
Full compliance
Full compliance
Full compliance
Cleaning standards (AQL-B)
Cleaning standards (AQL-C)
Submission of data to VICNISS
Hand hygiene (rate) – quarter 2
Full compliance
Hand hygiene (rate) – quarter 3
Hand hygiene (rate) – quarter 4
Health care worker immunisation – influenza
Safety and quality performance
85%
85%
90%
77%
80%
75%
75%
Full compliance
Full compliance
Full compliance
Full compliance
N/A
N/A
N/A
82.6%
96%
71.4%
75.9%
(1) The Victorian Healthcare Experience Survey (VHES) was formerly known as the Victorian Health Experience Measurement Instrument (VHEMI).(2) VICNISS is the Victorian Hospital Acquired Infection Surveillance System.
Financial sustainability performance
Rural Northwest Health - Annual Report 201512 13Rural Northwest Health - Annual Report 2015
Examine and Rural Northwest Health Rural Northwest Health has introduced an electronic Rural Northwest Health - Annual Report 201514 15Rural Northwest Health - Annual Report 2015
Ken Healey – Originally awarded by the Hopetoun Bush Nursing Hospital and transferred to RNH in 2012. Michael Lawlor - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Genevieve Lehmann - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Alan Malcolm - Originally awarded by the Hopetoun Bush Nursing Hospital and transferred to RNH in 2012.
Colin Natt - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Rural Northwest Health is responsible for the health and safety of all staff members in the work place. To fulfil this responsibility we have a duty to maintain a working environment that is safe and without risks to residents, clients, visitors and our staff members health.
Rural Northwest Health have ensured compliance with the OHS Act by:• Effective implementation of OH&S Policy and Protocols • Providing opportunities for regular discussion between the Board, Leadership & Management team and staff members • Regular workplace inspections and audits are undertaken and appropriate follow up action is taken • Providing information, training and supervision for all staff members in correct use of plant, equipment, chemical and other substances used• Maintaining regular reporting on OH&S statistics and data.
The following indicators for OH&S performance for Rural Northwest Health are:
Life Governors
Statement of Priorities (SoP)
Our StaffRural Northwest Health – Staff by Labour Category
Labour Category JUNE Current Month FTE* JUNE YTD FTE**
2013 2014 2013 2014
Nursing 86.78 86.49 81.81 84.16
Administration and Clerical 25.54 27.90 28.22 27.67
Medical Support 0 0.16 0.20 0.08
Hotel and Allied Services 46.39 48.82 50.40 51.41
Medical Officers 0 0 0 0
Hospital Medical Officers 0 0 0 0
Sessional Clinicians 0 0 0 0
Ancillary Staff (Allied Health) 15.11 13.43 14.14 14.99
Rural Northwest Health recruits high quality staff with the right skills to deliver the key objectives of the position, business unit and organisation and will comply with all legislated requirements and reflect a fair and open process with an appointment made based on merit. Rural Northwest Health is an equal opportunity employer.
Funding type 2014-15 Activity Achievement3,745 hours
Activity and FundingSoP Part C:
Small Rural Primary Health
27,732 daysSmall Rural Residential Care
21,915 hoursSmall Rural HACC
Leonard Shannon - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Allan Turnbull - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Rural Northwest Health commenced the life governor awards process in 2012 and the following life governors have been awarded:
Max Gibson – Inaugural RNH life governor - 2012
Marie Aitken – 2014
Les Solly - 2014
Occupational Health and Safety Act 2004
An award of Life Governor may be conferred upon a person to recognise a significant contribution through voluntary, philanthropic and/or professional service to Rural Northwest Health.Service worthy of note may include: excellence/length of service as a volunteer; significant philanthropy; outstanding professional service; an exceptional contribution in years of service or effort; initiating a new and/or innovative idea; or making a contribution significantly above and beyond expectations of their role.
The purpose of the award is to recognise and honour people whose service has resulted in a significant benefit to Rural Northwest Health. Awards will be issued in accordance with Rural Northwest Health’s Service Standing Orders, Section 18, and every appointed Life Governor shall be enrolled on the books of the service. The award comprises a framed certificate of appointment, presented at the Annual General Meeting, usually held in the month of November. Rural Northwest Health’s Life Governors are:
There was a small increase in Workcover claims made in 2014-2015 compared to the previous year, however all claims were dealt with efficiently and with minimal cost.
Examine and Rural Northwest Health Rural Northwest Health has introduced an electronic Rural Northwest Health - Annual Report 201514 15Rural Northwest Health - Annual Report 2015
Ken Healey – Originally awarded by the Hopetoun Bush Nursing Hospital and transferred to RNH in 2012. Michael Lawlor - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Genevieve Lehmann - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Alan Malcolm - Originally awarded by the Hopetoun Bush Nursing Hospital and transferred to RNH in 2012.
Colin Natt - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Rural Northwest Health is responsible for the health and safety of all staff members in the work place. To fulfil this responsibility we have a duty to maintain a working environment that is safe and without risks to residents, clients, visitors and our staff members health.
Rural Northwest Health have ensured compliance with the OHS Act by:• Effective implementation of OH&S Policy and Protocols • Providing opportunities for regular discussion between the Board, Leadership & Management team and staff members • Regular workplace inspections and audits are undertaken and appropriate follow up action is taken • Providing information, training and supervision for all staff members in correct use of plant, equipment, chemical and other substances used• Maintaining regular reporting on OH&S statistics and data.
The following indicators for OH&S performance for Rural Northwest Health are:
Life Governors
Statement of Priorities (SoP)
Our StaffRural Northwest Health – Staff by Labour Category
Labour Category JUNE Current Month FTE* JUNE YTD FTE**
2013 2014 2013 2014
Nursing 86.78 86.49 81.81 84.16
Administration and Clerical 25.54 27.90 28.22 27.67
Medical Support 0 0.16 0.20 0.08
Hotel and Allied Services 46.39 48.82 50.40 51.41
Medical Officers 0 0 0 0
Hospital Medical Officers 0 0 0 0
Sessional Clinicians 0 0 0 0
Ancillary Staff (Allied Health) 15.11 13.43 14.14 14.99
Rural Northwest Health recruits high quality staff with the right skills to deliver the key objectives of the position, business unit and organisation and will comply with all legislated requirements and reflect a fair and open process with an appointment made based on merit. Rural Northwest Health is an equal opportunity employer.
Funding type 2014-15 Activity Achievement3,745 hours
Activity and FundingSoP Part C:
Small Rural Primary Health
27,732 daysSmall Rural Residential Care
21,915 hoursSmall Rural HACC
Leonard Shannon - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Allan Turnbull - Originally awarded by the Beulah Pioneers & Bush Nursing Hospital and transferred to RNH in 2012.
Rural Northwest Health commenced the life governor awards process in 2012 and the following life governors have been awarded:
Max Gibson – Inaugural RNH life governor - 2012
Marie Aitken – 2014
Les Solly - 2014
Occupational Health and Safety Act 2004
An award of Life Governor may be conferred upon a person to recognise a significant contribution through voluntary, philanthropic and/or professional service to Rural Northwest Health.Service worthy of note may include: excellence/length of service as a volunteer; significant philanthropy; outstanding professional service; an exceptional contribution in years of service or effort; initiating a new and/or innovative idea; or making a contribution significantly above and beyond expectations of their role.
The purpose of the award is to recognise and honour people whose service has resulted in a significant benefit to Rural Northwest Health. Awards will be issued in accordance with Rural Northwest Health’s Service Standing Orders, Section 18, and every appointed Life Governor shall be enrolled on the books of the service. The award comprises a framed certificate of appointment, presented at the Annual General Meeting, usually held in the month of November. Rural Northwest Health’s Life Governors are:
There was a small increase in Workcover claims made in 2014-2015 compared to the previous year, however all claims were dealt with efficiently and with minimal cost.
2013/20142014/2015 2012/2013 2011/2012 2010/2011
Inpatient Statistics (Acute) Inpatients Treated 662 728 676Average Complexity (DRG Weight) 1.02 Inpatient Bed Days 4,030 Average Length of Stay (days) 5.72 Nursing Home Type (NHT) Bed Days 53 Available Bed Days 7,300 Occupancy Rate 55%
Aged Care Statistics- (Aged Program) High Care Residents Accommodated 86 70 37Resident Bed Days 12,792 13,592 12481Low Care Residents Accommodated 20 38 73Resident Bed Days 16,152 15,771 16390Respite Residents Accommodated 30 28 65Respite Resident Bed Days 347 348 1283Aged Care Occupancy Rate
*High Care not including respite89.17% 90.4% 91.8%
Outpatient (non-admitted) Occasions of Service Counsellor 918 738 Diabetic Educator 739 732 Dietician 1,027 989 Exercise Physiologist 1,736 1,619 Foot Care 337 35 Massage Therapist 446 417 Occupational Therapist 806 1,063 Physiotherapy 1,882 1,988 1941Podiatry 2,595 1,263 657Social Worker 397 Speech Therapist 799 801 Emergency Medicine 2,138 2,248 1906
Meals on Wheels 5,481 4,087 2950
No. of Emergency cases referred to other hospitals
135 128 163
1.11
4477
8.26
296
7300
61.3%
730
1.02
4,842
7.36
409
7,320
62.62%
1.15
4,542
6.59
171
7,300
62.23%
89
12,050
18
15,885
48
821
87.22%
406
465
903
1,819
379
399
819
3,367
2,146
1,165
2,306
6,486
122
391
625
1.05
3,435
39
10,445
60
15,477
64
89583.8%
5.50
23
5,840
58%
596
505
1,277
1,536
674
659
906
2,119
1,271
1,277
2,322
5,620
154
981
Rural Northwest Health is pleased to report a net result before capital and specific items of $227,000 and an entity loss of $1,659,000 after capital income and depreciation for the financial year ending 30 June 2015.
Pleasingly, total revenue from operating and non-operating activities in 2014-2015 was $417,000 up on the previous financial year and annual performance was in line with budget expectations.
Highlights included: Returns from investments grew and assisted with the overall strength of net assets Increased operating grants from government enabling Rural Northwest Health to provide acute, community and aged care services Patient and resident fees remained strong, and Income from radiology services continued to grow steadily.
We received generous donations from the local community who continue to assist with both financial support and their personal time. There were significant individual benefactors and very generous community groups who provided funds for various projects throughout the year. This financial support assists Rural Northwest Health to undertake events and activities that make a significant difference to our community.
Total expenditure attributable to operating activities was $427,000 higher than the previous year. The majority of this increase can be seen in the area of employee benefits and supplies and consumables. There were planned employee award driven salary increases during the year along with a steady increase in the cost of our basic supplies. A small number of aged care beds were unavailable during the year due to our building re-development and this reduced aged care funding over the financial year. There were no significant cost variations during the year with most expenditure held within budget expectations.
Rural Northwest Health is planning to invest $1.8 M from the capital budget in the 2015-16 financial year for stage 2 and $300,000 on the expansion of the Hopetoun dining room. In 2014-15 building refurbishment funds were invested on a staff residence in Hopetoun which will enhance the appeal for remote staff to come and work at Rural Northwest Health. Capital expenditure in 2014-15 has been utilised to cover the replacement of medical and IT equipment.
Fuel, light, power and water costs were maintained within budget levels and hopefully should decrease in the following year due to planned improvements to facilities.
Liabilities related to employee leave provisions continue to be Rural Northwest Health’s largest commitment. Management supports staff to utilise their accrued leave to maintain physical and mental wellbeing and to enjoy life. The board and executive team know that healthy and happy staff is critical to our service quality and safety.
Finance Summary-5 years 2009-2010 to 2013-2014
Financial Overview Service Performance at a Glance
2015 2014 2013 2012 2011
$’000 $’000 $’000 $’000 $’000
Total Revenue 19,260 19,169 18,560 16,842Total Expenses 18,608 18,139 16,952 15,931Operating Surplus/(Deficit) 235 1,030 1,608 911
Retained Surplus/(Accumulated Deficit) 10,911 12,266 13,003 12,937
Total Assets 51,441 48,945 46,725 47,039
Total Liabilities 6, 963 6,733 7,495 7,875Net Assets 44,478 42,212 39,230 39, 164
Total Equity 44,478
19,033
227
9,253
56,504
7,44149,063
49,063 42,212 39,164 39,956
Rural Northwest Health - Annual Report 201516 17Rural Northwest Health - Annual Report 2015
2013/20142014/2015 2012/2013 2011/2012 2010/2011
Inpatient Statistics (Acute) Inpatients Treated 662 728 676Average Complexity (DRG Weight) 1.02 Inpatient Bed Days 4,030 Average Length of Stay (days) 5.72 Nursing Home Type (NHT) Bed Days 53 Available Bed Days 7,300 Occupancy Rate 55%
Aged Care Statistics- (Aged Program) High Care Residents Accommodated 86 70 37Resident Bed Days 12,792 13,592 12481Low Care Residents Accommodated 20 38 73Resident Bed Days 16,152 15,771 16390Respite Residents Accommodated 30 28 65Respite Resident Bed Days 347 348 1283Aged Care Occupancy Rate
*High Care not including respite89.17% 90.4% 91.8%
Outpatient (non-admitted) Occasions of Service Counsellor 918 738 Diabetic Educator 739 732 Dietician 1,027 989 Exercise Physiologist 1,736 1,619 Foot Care 337 35 Massage Therapist 446 417 Occupational Therapist 806 1,063 Physiotherapy 1,882 1,988 1941Podiatry 2,595 1,263 657Social Worker 397 Speech Therapist 799 801 Emergency Medicine 2,138 2,248 1906
Meals on Wheels 5,481 4,087 2950
No. of Emergency cases referred to other hospitals
135 128 163
1.11
4477
8.26
296
7300
61.3%
730
1.02
4,842
7.36
409
7,320
62.62%
1.15
4,542
6.59
171
7,300
62.23%
89
12,050
18
15,885
48
821
87.22%
406
465
903
1,819
379
399
819
3,367
2,146
1,165
2,306
6,486
122
391
625
1.05
3,435
39
10,445
60
15,477
64
89583.8%
5.50
23
5,840
58%
596
505
1,277
1,536
674
659
906
2,119
1,271
1,277
2,322
5,620
154
981
Rural Northwest Health is pleased to report a net result before capital and specific items of $227,000 and an entity loss of $1,659,000 after capital income and depreciation for the financial year ending 30 June 2015.
Pleasingly, total revenue from operating and non-operating activities in 2014-2015 was $417,000 up on the previous financial year and annual performance was in line with budget expectations.
Highlights included: Returns from investments grew and assisted with the overall strength of net assets Increased operating grants from government enabling Rural Northwest Health to provide acute, community and aged care services Patient and resident fees remained strong, and Income from radiology services continued to grow steadily.
We received generous donations from the local community who continue to assist with both financial support and their personal time. There were significant individual benefactors and very generous community groups who provided funds for various projects throughout the year. This financial support assists Rural Northwest Health to undertake events and activities that make a significant difference to our community.
Total expenditure attributable to operating activities was $427,000 higher than the previous year. The majority of this increase can be seen in the area of employee benefits and supplies and consumables. There were planned employee award driven salary increases during the year along with a steady increase in the cost of our basic supplies. A small number of aged care beds were unavailable during the year due to our building re-development and this reduced aged care funding over the financial year. There were no significant cost variations during the year with most expenditure held within budget expectations.
Rural Northwest Health is planning to invest $1.8 M from the capital budget in the 2015-16 financial year for stage 2 and $300,000 on the expansion of the Hopetoun dining room. In 2014-15 building refurbishment funds were invested on a staff residence in Hopetoun which will enhance the appeal for remote staff to come and work at Rural Northwest Health. Capital expenditure in 2014-15 has been utilised to cover the replacement of medical and IT equipment.
Fuel, light, power and water costs were maintained within budget levels and hopefully should decrease in the following year due to planned improvements to facilities.
Liabilities related to employee leave provisions continue to be Rural Northwest Health’s largest commitment. Management supports staff to utilise their accrued leave to maintain physical and mental wellbeing and to enjoy life. The board and executive team know that healthy and happy staff is critical to our service quality and safety.
Finance Summary-5 years 2009-2010 to 2013-2014
Financial Overview Service Performance at a Glance
2015 2014 2013 2012 2011
$’000 $’000 $’000 $’000 $’000
Total Revenue 19,260 19,169 18,560 16,842Total Expenses 18,608 18,139 16,952 15,931Operating Surplus/(Deficit) 235 1,030 1,608 911
Retained Surplus/(Accumulated Deficit) 10,911 12,266 13,003 12,937
Total Assets 51,441 48,945 46,725 47,039
Total Liabilities 6, 963 6,733 7,495 7,875Net Assets 44,478 42,212 39,230 39, 164
Total Equity 44,478
19,033
227
9,253
56,504
7,44149,063
49,063 42,212 39,164 39,956
Rural Northwest Health - Annual Report 201516 17Rural Northwest Health - Annual Report 2015
Attestation on Data Integrity Catherine MorleyAccountable Officer
Warracknabeal11 August 2014
I, Catherine Morley certify that Rural Northwest Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Rural Northwest Health has critically reviewed these controls and processes during the year.
Attestation for compliance with the Ministerial StandingDirection 4.5.5 – Risk Management Framework and Processes
Catherine MorleyAccountable Officer
Warracknabeal11 August 2014
I, Catherine Morley certify that Rural Northwest Health has complied with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes. The Finance Audit and Compliance Committee verifies this.
Protected Disclosure Act 2012
Building and Maintenance
All building works comply with the Building Act 1993.
Competitive Neutrality
Legislative ComplianceLegislative Compliance
Freedom of Information (FOI)
Details of Consultancies over $10,000Consultant Purpose of
consultancyStart date End date Total approved
project fee(excluding GST)
Expenditure 2012-13
(excluding GST)
Future expenditure(excluding GST)
Clare Dewan HR/IR industrialrelations consultancy
July 2014 June 2015 $10,763 $10,763 $10,500
Foresight Lane Strategic Planning November 2014
June 2015 $115,000 $115,000 Nil
In 2014-15, Rural Northwest Health engaged 5 consultancies where the total fees payable to the consultants were less than $10,000, with a total expenditure of $16,300 (excl. GST).
Rural Northwest Health has received 4 requests for information under the Freedom of Information Act (1982) during the 2014–15 financial year, a decrease of 50% on the previous financial year. From the 4 requests, all 4 cases access was granted in full.
Rural Northwest Health facilitates the making of disclosures of improper conduct by employees, provides a system of investigation of such disclosures and protects employees making disclosures from retribution in accordance with the provisions of the Protected Disclosure Act 2012.
All competitive neutrality requirements were met in accordance with the requirements of the Government policy statement, Competitive Neutrality Policy Victoria and subsequent reforms.
Carers Recognition Act 2012Rural Northwest Health has taken measures to ensure awareness and understanding of care relationship principles, in line with Section 11 of the Carer’s Recognition Act 2012.
Environmental PerformanceRural Northwest Health is committed to sustainability and reducing its carbon footprint. New and ongoing energy saving initiatives include:• Replacement of internal lighting to lower running cost LED lighting• Introduction of additional solar panels for greater energy generation• Planning stages for the removal of large Gas Boiler.
Compliance with Data Vic Access PolicyConsistent with the DataVic Access Policy issued by the Victorian Government in 2012, the information included in this Annual Report will be available at http://www.data.vic.gov.au/ and on the Rural Northwest Health website, in machine readable format.
OTHER INFORMATION
Consistent with FRD 22F (Section 6.18) the items listed below have been retained by Rural Northwest Health and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements): (a) Declarations of pecuniary interests have been duly completed by all relevant officers (b) Details of shares held by senior officers as nominee or held beneficially; (c) Details of publications produced by the entity about itself, and how these can be obtained (d) Details of changes in prices, fees, charges, rates and levies charged by the Health Service; (e) Details of any major external reviews carried out on the Health Service; (f) Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations; (g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit; (h) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services; (i) Details of assessments and measures undertaken to improve the occupational health and safety of employees; (j) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations; (k) A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which those purposes have been achieved; (l) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.
Ex-gratia Payments
No ex-gratia payments have been incurred and written off during the reporting period.
Victorian Industry Participation Policy
Rural Northwest Health complies with the requirements of the Victorian Industry Participation Policy Act 2003.
Rural Northwest Health - Annual Report 201518 19Rural Northwest Health - Annual Report 2015
Attestation on Data Integrity Catherine MorleyAccountable Officer
Warracknabeal11 August 2014
I, Catherine Morley certify that Rural Northwest Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Rural Northwest Health has critically reviewed these controls and processes during the year.
Attestation for compliance with the Ministerial StandingDirection 4.5.5 – Risk Management Framework and Processes
Catherine MorleyAccountable Officer
Warracknabeal11 August 2014
I, Catherine Morley certify that Rural Northwest Health has complied with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes. The Finance Audit and Compliance Committee verifies this.
Protected Disclosure Act 2012
Building and Maintenance
All building works comply with the Building Act 1993.
Competitive Neutrality
Legislative ComplianceLegislative Compliance
Freedom of Information (FOI)
Details of Consultancies over $10,000Consultant Purpose of
consultancyStart date End date Total approved
project fee(excluding GST)
Expenditure 2012-13
(excluding GST)
Future expenditure(excluding GST)
Clare Dewan HR/IR industrialrelations consultancy
July 2014 June 2015 $10,763 $10,763 $10,500
Foresight Lane Strategic Planning November 2014
June 2015 $115,000 $115,000 Nil
In 2014-15, Rural Northwest Health engaged 5 consultancies where the total fees payable to the consultants were less than $10,000, with a total expenditure of $16,300 (excl. GST).
Rural Northwest Health has received 4 requests for information under the Freedom of Information Act (1982) during the 2014–15 financial year, a decrease of 50% on the previous financial year. From the 4 requests, all 4 cases access was granted in full.
Rural Northwest Health facilitates the making of disclosures of improper conduct by employees, provides a system of investigation of such disclosures and protects employees making disclosures from retribution in accordance with the provisions of the Protected Disclosure Act 2012.
All competitive neutrality requirements were met in accordance with the requirements of the Government policy statement, Competitive Neutrality Policy Victoria and subsequent reforms.
Carers Recognition Act 2012Rural Northwest Health has taken measures to ensure awareness and understanding of care relationship principles, in line with Section 11 of the Carer’s Recognition Act 2012.
Environmental PerformanceRural Northwest Health is committed to sustainability and reducing its carbon footprint. New and ongoing energy saving initiatives include:• Replacement of internal lighting to lower running cost LED lighting• Introduction of additional solar panels for greater energy generation• Planning stages for the removal of large Gas Boiler.
Compliance with Data Vic Access PolicyConsistent with the DataVic Access Policy issued by the Victorian Government in 2012, the information included in this Annual Report will be available at http://www.data.vic.gov.au/ and on the Rural Northwest Health website, in machine readable format.
OTHER INFORMATION
Consistent with FRD 22F (Section 6.18) the items listed below have been retained by Rural Northwest Health and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements): (a) Declarations of pecuniary interests have been duly completed by all relevant officers (b) Details of shares held by senior officers as nominee or held beneficially; (c) Details of publications produced by the entity about itself, and how these can be obtained (d) Details of changes in prices, fees, charges, rates and levies charged by the Health Service; (e) Details of any major external reviews carried out on the Health Service; (f) Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations; (g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit; (h) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services; (i) Details of assessments and measures undertaken to improve the occupational health and safety of employees; (j) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations; (k) A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which those purposes have been achieved; (l) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.
Ex-gratia Payments
No ex-gratia payments have been incurred and written off during the reporting period.
Victorian Industry Participation Policy
Rural Northwest Health complies with the requirements of the Victorian Industry Participation Policy Act 2003.
Rural Northwest Health - Annual Report 201518 19Rural Northwest Health - Annual Report 2015
Legislation Requirement Page Reference
Disclosure Index Appendix A - Alternative Presentation of Comprehensive Operating Statement
Financial Management ActSD 4.2(a) Compliance with Australian accounting standards (AAS and AASB
standards) and other mandatory professional reporting requirements.FS5
SD 4.2(b) FS1 - FS48
SD 4.2(c) 22
SD 4.2(d) Rounding of amounts FS8SD 4.2(j) Responsible Bodies Declaration 4Financial and other informationFRD 10 Disclosure index 20
FRD 11A Disclosure of ex-gratia payments 1919
AttestationsSD 3.4.13 Attestation of Data Integrity 19
19
Compliance with DataVic Access Policy 19
Key Financial and Service Performance ReportingSD 3.4.13 Statement of Priorities:
Part APart BPart C
10-131314
SD 4.5.5 Attestation for compliance with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes
FRD 12A Disclosure of Major Contracts
FRD 21B Responsible Persons Disclosure FS47
FRD 22F Manner of establishment and the relevant Ministers 6
FRD 22F Purpose, functions, powers and duties 6
FRD 22F Nature and range of services provided 6
FRD 22F Key initiatives, programs and achievements 4
FRD 22F Organisational Structure 7
FRD 22F Workforce data 14
FRD 22F Statement on employment and conduct principles 14
FRD 22F Occupational Health and Safety 15
FRD 22F 16
FRD 22F Significant factors affecting performance 16
FRD 22F Details of consultancies over $10,000 18
FRD 22F Details of consultancies under $10,000 18
FRD 22F 18
FRD 22F Additional information available on request 19
FRD 25B Disclosures under the Victorian Industry Participation Policy 2003. 10
FRD 30B Compliance with the Standard Requirements for the Publication of Annual Reports 2
19
Financial information: • summary of the financial results for past five years• summary of the significant changes in financial position• summary of the entity’s operational and budgetary objectives • subsequent events
Application and compliance• summary of the application and operation of the Freedom of Information Act 1982 (FOI Act);• statement on compliance with the building and maintenance provisions of the Building Act 1993; • summary of the application and operation of the Protected Disclosure Act 2012; • statement on the implementation and compliance with National Competition Policy;• statement on the application and operation of the Carers Recognition Act 2012 (Carers Act).• summary of an entity’s environmental performance.
Financial Statements:• income statement• balance sheet
• statement of recognised income and expense• cash �ows statement• notes to the �nancial statements.
Accountable Officer, Chief Financial Officer and Responsible Body declaration and sign off.
Rural Northwest Health - Annual Report 201520 21Rural Northwest Health - Annual Report 2015
Legislation Requirement Page Reference
Disclosure Index Appendix A - Alternative Presentation of Comprehensive Operating Statement
Financial Management ActSD 4.2(a) Compliance with Australian accounting standards (AAS and AASB
standards) and other mandatory professional reporting requirements.FS5
SD 4.2(b) FS1 - FS48
SD 4.2(c) 22
SD 4.2(d) Rounding of amounts FS8SD 4.2(j) Responsible Bodies Declaration 4Financial and other informationFRD 10 Disclosure index 20
FRD 11A Disclosure of ex-gratia payments 1919
AttestationsSD 3.4.13 Attestation of Data Integrity 19
19
Compliance with DataVic Access Policy 19
Key Financial and Service Performance ReportingSD 3.4.13 Statement of Priorities:
Part APart BPart C
10-131314
SD 4.5.5 Attestation for compliance with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes
FRD 12A Disclosure of Major Contracts
FRD 21B Responsible Persons Disclosure FS47
FRD 22F Manner of establishment and the relevant Ministers 6
FRD 22F Purpose, functions, powers and duties 6
FRD 22F Nature and range of services provided 6
FRD 22F Key initiatives, programs and achievements 4
FRD 22F Organisational Structure 7
FRD 22F Workforce data 14
FRD 22F Statement on employment and conduct principles 14
FRD 22F Occupational Health and Safety 15
FRD 22F 16
FRD 22F Significant factors affecting performance 16
FRD 22F Details of consultancies over $10,000 18
FRD 22F Details of consultancies under $10,000 18
FRD 22F 18
FRD 22F Additional information available on request 19
FRD 25B Disclosures under the Victorian Industry Participation Policy 2003. 10
FRD 30B Compliance with the Standard Requirements for the Publication of Annual Reports 2
19
Financial information: • summary of the financial results for past five years• summary of the significant changes in financial position• summary of the entity’s operational and budgetary objectives • subsequent events
Application and compliance• summary of the application and operation of the Freedom of Information Act 1982 (FOI Act);• statement on compliance with the building and maintenance provisions of the Building Act 1993; • summary of the application and operation of the Protected Disclosure Act 2012; • statement on the implementation and compliance with National Competition Policy;• statement on the application and operation of the Carers Recognition Act 2012 (Carers Act).• summary of an entity’s environmental performance.
Financial Statements:• income statement• balance sheet
• statement of recognised income and expense• cash �ows statement• notes to the �nancial statements.
Accountable Officer, Chief Financial Officer and Responsible Body declaration and sign off.
Rural Northwest Health - Annual Report 201520 21Rural Northwest Health - Annual Report 2015
Rural Northwest Health - Annual Report 201522
Rural Northwest Health - Annual Report 201522 23
24
RURAL NORTHWEST HEALTH
COMPREHENSIVE OPERATING STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
Note 2015 2014
$'000 $'000
Revenue from Operating Activities 2 18,806 18,249
Revenue from Non-Operating Activities 2 454 594
Employee Benefits 3 (13,956) (13,537)
Non Salary Labour Costs 3 (247) (318)
Supplies and Consumables 3 (1,228) (1,072)
Other Expenses 3 (3,602) (3,681)
Net Result Before Capital and Specific Items 227 236
Capital Purpose Income 2 583 704
Depreciation 4 (2,403) (2,294)
Expenditure for Capital Purposes 3 (66) 0
NET RESULT FOR THE YEAR (1,659) (1,354)
Other Comprehensive Income
Changes in physical asset revaluation surplus 15 0 3,621
COMPREHENSIVE RESULT (1,659) 2,267
This Statement should be read in conjunction with the accompanying notes.
1
RURAL NORTHWEST HEALTH
BALANCE SHEET
AS AT 30 JUNE 2015
Note 2015 2014$'000 $'000
Current Assets
Cash and Cash Equivalents 5 2,373 2,428Receivables 6 599 661Investments and Other Financial Assets 7 11,380 10,050Inventories 8 65 63Other Assets 9 153 125Total Current Assets 14,569 13,327
Non-Current Assets
Receivables 6 0 20Property, Plant and Equipment 10 41,935 38,094
Total Non-Current Assets 41,935 38,114
TOTAL ASSETS 56,504 51,441
Current Liabilities
Payables 11 860 649Provisions 12 3,363 3,050Other Liabilities 14 2,871 2,906Total Current Liabilities 7,094 6,604
Non-Current Liabilities
Provisions 12 347 357Total Non-Current Liabilities 347 357
TOTAL LIABILITIES 7,441 6,961
NET ASSETS 49,063 44,479
EQUITY
Property, Plant and Equipment Revaluation Surplus 15a 12,519 12,519Restricted Specific Purpose Surplus 15a 113 113Contributed Capital 15b 27,178 20,935Accumulated Surplus 15c 9,253 10,912TOTAL EQUITY 49,063 44,479
Commitments 18Contingent Assets and Contingent Liabilities 19
This Statement should be read in conjunction with the accompanying notes.
2
RURAL NORTHWEST HEALTH
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
Property, Plant Restricted Contributed Accumulated Total
and Equipment Specific Capital Surpluses/
Revaluation Purpose (Deficits)
Reserve Reserve
Note $'000 $'000 $'000 $'000 $'000
Balance at 1 July 2013 8,898 113 20,935 12,266 42,212
Net result for the year 15c 0 0 0 (1,354) (1,354)Other Comprehensive Income 15a 3,621 0 0 0 3,621
Balance at 30 June 2014 12,519 113 20,935 10,912 44,479
Net result for the year 15c 0 0 0 (1,659) (1,659)Other comprehensive income for the year 15b 0 0 6,243 0 6,243
Balance at 30 June 2015 12,519 113 27,178 9,253 49,063
This Statement should be read in conjunction with the accompanying notes.
3
RURAL NORTHWEST HEALTH
CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
Note 2015 2014$'000 $'000
Inflows / Inflows /CASH FLOWS FROM OPERATING ACTIVITIES (Outflows) (Outflows)
Operating Grants from Government 16,027 15,737Patient and Resident Fees Received 2,464 1,801Donations and Bequests Received 94 89GST (Paid to)/received from ATO (235) 36Interest Received 522 461Other Receipts 501 768Total Receipts 19,373 18,892
Employee Expenses Paid (13,653) (13,586)Fee for Service Medical Officers (247) (318)Payments for Supplies and Consumables (1,407) (931)Other Payments (3,172) (3,446)Total Payments (18,479) (18,281)
Cash Generated from Operations 894 611
Capital Grants from Government 414 144Capital Donations and Bequests Received 3 0
NET CASH FLOW FROM /(USED IN) OPERATING ACTIVITIES 16 1,311 755
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investments (1,374) (7,441)Payments for Non-Financial Assets (6,236) (584)Proceeds from sale of Non-Financial Assets 5 98Contributed capital from Government 6,243 0
NET CASH FLOW FROM /(USED IN) INVESTING ACTIVITIES (1,362) (7,927)
NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS HELD (51) (7,172)
CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 2,084 9,256
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 5 2,033 2,084
This Statement should be read in conjunction with the accompanying notes.
4
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
NOTE 1 : SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These annual financial statements represent the audited general purpose financial statements for Rural Northwest Health(ABN 23 976 871 636) for the period ended 30 June 2015. The purpose of the report is to provide users with information about Rural Northwest Health's stewardship of resources entrusted to it.
(a) Statement of compliance
These financial statements are general purpose financial statements which have been prepared in accordancewith the Financial Management Act 1994, and applicable Australian Accounting Standards (AASs), which include
interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.
The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Minister for Finance.
Rural Northwest Health is a not-for profit entity and therefore applies the additional AUS paragraphs applicable to "not-for-profit" Health Services under the AAS's.
The annual financial statements were authorised for issue by the Board of Rural Northwest Health on 31st August, 2015.
(b) Basis of accounting preparation and measurement
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfiesthe concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or otherevents is reported.
The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2015, and the comparative information presented in these financial statements for the year ended 30 June 2014.
The going concern basis was used to prepare the financial statements. The service contemplates the continuity of normal trading operations and the realisation of assets and settlement of liabilities in the ordinary course of business.
These financial statements are presented in Australian Dollars, the functional and presentation currency of Rural Northwest Health.
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.
The financial statements are prepared in accordance with the historical cost convention, except for:
• Non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;
• The fair value of assets other than land, buildings and motor vehicles are generally based on their depreciated
replacement value.
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Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(b) 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 associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances.Actual results may differ from these estimates.
Consistent with AASB 13 Fair Value Measurement, Rural Northwest Health determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant FRDs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities• Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable• Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, Rural Northwest Health has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, Rural Northwest Health determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria (VGV) is Rural Northwest Health’s independent valuation agency.
Rural Northwest Health, in conjunction with VGV monitors the changes in the fair value of each asset and liabilitythrough relevant data sources to determine whether revaluation is required.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the revision affects both current and future periods. Judgements and assumptions made by managementin the application of AASs that have significant effects on the financial statements and estimates, with a risk of materialadjustments in the subsequent reporting period, relate to:• the fair value of land, buildings, plant and equipment (refer to Note 1(k);• superannuation expense (refer to Note 1(h)); and• actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims,
future salary movements and future discount rates (refer to Note 1(l)).
(c) Reporting entity
The financial statements includes all the controlled activities of Rural Northwest Health.
Its principal address is: Dimboola RoadWarracknabeal 3393
A description of the nature of Rural Northwest Health's operations and its principal activities is included in thereport of operations, which does not form part of these financial statements.
Objectives and funding
Rural Northwest Health's overall objective is to provide accessible, efficient and excellent care to the community within the Wimmera Mallee Region, as well as improve the quality of life to Victorians.
Rural Northwest Health is predominantly funded by accrual based grant funding for the provision of outputs.
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Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(d) Principles of consolidation
Intersegment Transactions
Transactions between segments within Rural Northwest Health have been eliminated to reflectthe extent of Rural Northwest Health's operations as a group.
Associates and joint ventures
Associates and joint ventures are accounted for in accordance with the policy outlined in Note 1(f) changes in accounting policy, and1 (k) financial assets.
Jointly controlled assets or operations
Interest in jointly controlled assets or operations are not consolidated by Rural Northwest Health, but are accounted for in accordance with the policy outlined in Note 1(k) Financial Assets.
(e) Scope and presentation of financial statements
Fund Accounting
The Rural Northwest Health operates on a fund accounting basis and maintains three funds:Operating, Specific Purpose and Capital Funds. Rural Northwest Health's Capital and Specific Purpose Funds include unspent capital donations and receipts from fundraising activities conducted solely in respect of these funds.
Services Supported by Health Services Agreement and Services Supported by Hospital and Community Initiatives.
Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health
and Human Services and include Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (Non HSA) are funded by Rural Northwest Health's own activities or local initiatives and/or the Commonwealth.
Comprehensive operating statement
The comprehensive operating statement includes the subtotal entitled 'Net Result Before Capital and Specific Items' toenhance the understanding of the financial performance of Rural Northwest Health. This subtotal reports the resultexcluding items such as capital grants, assets received or provided free of charge, depreciation, expenditure using capitalpurpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of theseitems is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of resultsbetween years and Victorian Public Health Services. The 'Net Result Before Capital and Specific Items' is used by the managementmanagement of Rural Northwest Health, the Department of Health and Human Services and the Victorian Government to measure the ongoing operating performance of Health Services.
Capital and specific items, which are excluded from this sub-total comprise:* Capital purpose income, which comprises all tied grants, donations and bequests received for the
purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets.It also includes donations of plant and equipment (refer note 1 (g)). Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at thetime the revenue is provided; and
* Depreciation, as described in note 1 (h).
Balance sheet
Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expectedto be recovered / settled more than 12 months after reporting period), are disclosed in the notes where relevant.
Statement of changes in equity
The statement of changes in equity presents reconciliations of each non-owner and owner changes in equity from the opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separatelychanges due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income.
Cash flow statement
Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financingactivities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows .
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Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(e) Scope and presentation of financial statements (continued)
Rounding Of Amounts
All amounts shown in the financial statements are expressed to the nearest $1,000.
Minor discrepancies in tables between totals and sum of components are due to rounding.
Comparative Information
There have been no changes to comparative information which require additional disclosure
(f) Change in accounting policies
AASB 10 Consolidated financial statements
AASB 10 provides a new approach to determine whether an entity has control over another entity, and therefore must present consolidated financial statements. The new approach requires the satisfaction of all three criteria for control to exist over an entity for financial reporting purposes:
(a) The investor has power over the investee;(b) The investor has exposure, or rights to variable returns from its involvement with the investee; and (c) The investor has the ability to use its power over the investee to affect the amount of investor’s returns.
Based on the new criteria prescribed in AASB 10, Rural Northwest Health has reviewed the existing arrangements to determine if there are any additional entities that need to be consolidated into the group.
Based on the new criteria prescribed in AASB 10, Rural Northwest Health has reviewed the existing arrangements to determine if there are any additional entities that need to be consolidated into the group. Based on this review, Rural Northwest Health has determinedthere are no entities required to be consolidated in accordance with AASB 10.
AASB 11 Joint Arrangements
In accordance with AASB 11, there are two types of joint arrangements, i.e. joint operations and joint ventures. Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities, revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the arrangement; joint ventures are accounted for under the equity method. Proportionate consolidation of joint ventures is no longer permitted.
Rural Northwest Health has reviewed its existing contractual arrangements with other entities to ensure they are aligned with the new classifications under AASB 11.
Rural Northwest Health has accounted for the following interests in associates and joint ventures using the joint operationmethod which prescribes a proportionate consolidation approach: - Grampians Rural Health Alliance
AASB 12 Disclosure of Interests in Other Entities
AASB 12 Disclosure of Interests in Other Entities prescribes the disclosure requirements for an entity’s interests in subsidiaries, associates and joint arrangements; and extends to the entity’s association with unconsolidated structured entities.
Rural Northwest Health has disclosed information about its interests in associates and joint ventures, including any significant judgements and assumptions used in determining the type of joint arrangement in which it has an interest.
AASB 2015-7 Amendments to Australian Accounting Standards
The Australian Accounting Standards Board issued an amending accounting standard AASB 2015-7Amendments to Australian Accounting Standards - Fair Value disclosures of Not-for-Profit Public Sector Entities on 13 July 2015.In accordance with FRD 7A Early adoption of authoritative accounting pronouncements, the Minister for Finance has approved the option for Victorian not-for-profit public sector entities to early adopt the amending accounting standard to enable them to benefit fromsome limited exemption in relation to fair value disclosures for the 2014-15 reporting period. The limited exemption is available to those entities whose assets are held primarily for their current service potential rather than to generate net cash inflows.
Rural Northwest Health meets the criteria specified in AASB 2015-7 to benefit from the reduced disclosure requirements, so it has chosen to early adopt the amendments to Fair Value disclosure of not-for-profit public sector entities.
8
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(g) Income Recognition
Income from transactions
Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that
the economic benefits will flow to Rural Northwest Health and the income can be reliably measured at fair value. Unearnedincome at reporting date is reported as income received in advance.
Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.
Government Grants and other transfers of income (other than contributions by owners)
In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions
by owners) are recognised as income when the Rural Northwest Health gains control of the underlying assets irrespective ofwhether conditions are imposed on Rural Northwest Health's use of the contributions.
Contributions are deferred as income in advance when Rural Northwest Health has a present obligation to repay them and the present obligation can be reliably measured.
Indirect Contributions from the Department of Health and Human Services
- Insurance is recognised as revenue following advice from the Department of Health and Human Services.- Long Service Leave (LSL) - Revenue is recognised upon finalisation of movements in LSL liability in line with
the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 05/2013(update for 2012-13)
Patient and Resident Fees
Patient fees are recognised as revenue at the time invoices are raised.
Private Practice Fees
Private Practice fees are recognised as revenue at the time invoices are raised.
Revenue from commercial activities
Revenue from commercial activities such as provision of meals to external users is recognised at the time the invoicesare raised.
Donations and Other Bequests
Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as specific restricted purpose surplus.
Interest revenue
Interest revenue is recognised on a time proportionate basis that takes in account the effective yield of the financial asset,which allocates interest over the relevant period.
(h) Expense recognition
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee expenses
Employee expenses include:• Wages and salaries;• Annual leave;• Long service leave; and• Superannuation expenses which are reported differently depending upon whether employees are members of
defined benefit or defined contribution plans.
Defined contribution superannuation plans
In relation to defined contributions (i.e. accumulation) superannuation plans, the associated expense is simply the employercontributions that are paid or payable in respect of employees who are members of these plans during the reporting period.Contributions to defined contribution superannuation plans are expensed when incurred.
9
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(h) Expense recognition (Continued)
Defined benefit superannuation plans
The amount charged to the comprehensive operating statement in respect of defined benefit superannuationplans represents the contributions made by Rural Northwest Health to the superannuation plans in respect of the services of current rural Northwest Health staff during the reporting period. Superannuation contributions are made to the plansbased on the relevant rules of each plan, and are based upon actuarial advice.
Employees of the Rural Northwest Health are entitled to receive superannuation benefits and theRural Northwest Health contributes to both the defined benefit and defined contribution plans.The defined benefit plans provide benefits based on years of service and final average salary.
The name and details of the major employee superannuation funds and contributions made by Rural NorthwestHealth are disclosed in Note 14: Superannuation.
Depreciation
All 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 begins when the asset isavailable for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.
Intangible produced assets with finite lives are depreciated as an expense from transactions on a systematic basis over the asset's useful life. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually and adjustments made as appropriate. This depreciation charge is not funded by the Department of Health and Human Services. Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives.
The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based.
2015 2014
Buildings- Structure Shell Building Fabric 25 to 50 years 45 to 60 years- Site Engineering Services and Central Plant 25 to 50 years 20 to 30 yearsCentral Plant- Fit Out 25 to 50 years 20 to 30 years- Trunk Reticulated Building Systems 25 to 50 years 30 to 40 yearsPlant and Equipment 3 to 20 years 3 to 20 yearsMedical Equipment 4 to 20 years 4 to 20 yearsComputers and Communication 3 to 4 years 3 to 4 yearsFurniture and Fittings 5 to 20 years 5 to 20 yearsMotor Vehicles 4 to 8 years 4 to 8 years
As part of the buildings valuation, building values were separated into components and each component assessed for its usefullife which is represented above.
Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset's useful life.
Finance Costs
Finance costs are recognised as expenses in the period in which they are incurred and relate to interest on residential aged care accommodation bonds payable.
Grants and Other Transfers
Grants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting periodin which they are paid or payable. They include transactions such as: grants, subsidies and personal benefit payments made in cash to individuals.
Other operating expenses
Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:
10
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(h) Expense recognition (Continued)
Supplies and Consumables
Supplies and service costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expenses when distributed.
Bad and Doubtful Debts
Refer to note 1 (k) Impairment of financial assets.
(i) Other comprehensive income
Other comprehensive income measure the change in volume or value of assets or liabilities that do not result from transactions.
Net gain / (loss) on non-financial assets
Net gain / (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
Revaluation gains / (losses) of non-financial physical assets
Refer to Note 1 (k) Revaluations of non-financial physical assets.
Net gain/(loss) on disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between proceeds and the carrying value of the asset at the time.
Net gain/ (loss) on financial instruments
Net gain/ (loss) on financial instruments includes: - realised and unrealised gains and losses from revaluations of financial instruments at fair value; - impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1 (k)); and - disposals of financial assets and derecognition of financial liabilities
Revaluations of financial instrument at fair value
Refer to Note 1 (j) Financial instruments.
Share of net profits/ (losses) of associates and jointly controlled entities, excluding dividends.
Refer to Note 1 (d) Basis of consolidation.
Other gains/ (losses) from other comprehensive income
Other gains/ (losses) include: - transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.
Impairment of Non-Financial Assets
Goodwill and intangible assets with indefinite useful lives (and intangible assets not available for use) are tested annually for impairment and whenever there is an indication that the asset may be impaired. Refer to Note 1 (k) Assets.
(j) Financial instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liabilityor equity instrument of another entity. Due to the nature of Rural Northwest Health's activities, certain financial assetsand financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet thedefinition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivablesarising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract.
Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities thatmeet the definition of financial instruments in accordance with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
11
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(j) Financial instruments
Categories of non-derivative financial instruments
Reclassification of financial instruments at fair value through profit or loss
Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair value through profit and loss category into the loans and receivables category, where they would have met the definition of loans and receivables had they not been required to be classified as fair value through profit and loss. In these cases, the financial instrument assets may be reclassified out of the fair value through profit and loss category, if there is the intention and ability to hold them for the foreseeable future or until maturity.
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on anactive market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequentto initial measurement, loans and receivables are measured at amortised cost using the effective interest method, lessany impairment.
Loans and receivables category includes cash and deposits (refer to Note 1(j)), term deposits with maturity greater thanthree months, trade receivables, loans and other receivables, but not statutory receivables.
Reclassification of available-for-sale financial assets
Available-for sale financial instrument assets that meet the definition of loans and receivables may be classified into the loans and receivables category if there is the intention and ability to hold them for the foreseeable future or until maturity.
Financial Liabilities at amortised cost
Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair valueplus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured atamortised cost with any difference between the initial recognised amount and the redemption value being recognised inprofit and loss over the period of the interest-bearing liability, using the effective interest rate method.
Financial instrument liabilities measured at amortised cost include all of Rural Northwest Health's contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.
(k) Assets
Cash and Cash Equivalents
Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash with aninsignificant risk of changes in value.
Receivables
Receivables consist of: - Contractual receivables, which includes of mainly debtors in relation to goods and services and accrued investment income. - Statutory receivables, which includes predominantly amounts owing from the Victorian Government and Goods and Services Tax ("GST") input tax credits recoverable; and
Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutoryreceivables are recognised and measured similarly to contractual receivables (except for impairment), but are notclassified as financial instruments because they do not arise from a contract.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, usingthe effective interest rate method, less any accumulated impairment.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. 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.
12
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(k) Assets (Continued)
Investments and other financial assets
Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.
Investments are classified in the following categories: - Financial assets at fair value through profit or loss; - Held-to-maturity; - Loans and receivables; and - Available-for-sale financial assets.
Rural Northwest Health classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.
Rural Northwest Health assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
All financial assets, except for those measured at fair value through profit or loss are subject to annual review for impairment.
Inventories
Inventories include goods and other property held either for sale, consumption or for distribution at no or nominalcost in the ordinary course of business operations. It excludes depreciable assets.
Inventories held for distribution are measured at cost, adjusted for any loss of service potential. Allother inventories, including land held for sale, are measured at the lower of cost and net realisable value.
The bases used in assessing loss of service potential for inventories held for distribution include current replacementcost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions forsome or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functionalobsolescence occurs when an item no longer functions the way it did when it was first acquired.
Cost for all other inventory is measured on the basis of weighted average cost.
Property, plant and equipment
All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition.Assets transferred as part of a merger / machinery of government are transferred at their carrying amount.
More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 10 Property, plant and equipment .
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 theintended 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 restriction 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 impairment.
Plant, equipment and vehicles are recognised initially at cost and subsequently measured at fair value less
accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned.
13
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(k) Assets (Continued)
Revaluations of Non-current Physical Assets
Non-Current physical assets are measured at fair value and are revalued in accordance with FRD 103F Non-currentphysical assets. This revaluation process normally occurs at least every five years, based upon the asset's Government
Purpose Classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the 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 the 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 derecognition of the relevant asset.
In accordance with FRD 103F Rural Northwest Health's non-current physical assets were assessed to determine whetherrevaluation of the non-current physical assets was required. This assessment did not identify any significant movements that would require a valuation.
Prepayments
Other non-financial assets include prepayments which represent payments in advance of receipt of goods or servicesor that part of expenditure made in one accounting period covering a term extending beyond that period.
Disposal of non-financial assets
Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement. Refer tonote 1(i) - 'other comprehensive income'.
Impairment of non-financial assets
Goodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually forimpairment (as described below) and whenever there is an indication that the asset may be impaired.
Apart from intangible assets with indefinite useful lives, all other assets are assessed annually for indications of impairment, except for:
• inventories.
If there is an indication of impairment, the assets concerned are tested as to whether their carryingvalue exceeds their possible recoverable amount. Where an asset's carrying value exceeds its recoverableamount, the difference is written-off as an expense except to the extent that the write-down can be debited to anan asset revaluation reserve amount applicable to that same class of asset.
If there is an indication that there has been a reversal in the estimate of an asset's recoverable amount since the lastimpairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal ofthe impairment loss occurs only to the extent that the asset's carrying amount does not exceed the carrying amountthat would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised inprior years.
It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use ofthe asset will be replaced unless a specific decision to the contrary has been made. The recoverable amountfor most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell.Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of thepresent value of future cash flows expected to be obtained from the asset and fair value less costs to sell.
14
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(k) Assets (Continued)
Investments accounted for using the Equity Method
An associate is an entity over which Rural Northwest Health exercises significant influence, but not control.
The investment in the associate is accounted for using the equity method of accounting. Under the equity method for accounting, the investment in the associate is recognised at cost on initial recognition, and the carrying amount is increased or decreased in subsequent years to recognise Rural Northwest Health’s share of the profits or losses of the associates after the date of acquisition. Rural Northwest Health's share of the associate’s profit or loss is recognised in Rural Northwest Health’s net result as ‘other economic flows’. The share of post-acquisition changes in revaluation surpluses and any other reserves, are recognised in both the comprehensive operating statement and the statement of changes in equity. The cumulative post acquisition movements are adjusted against the carrying amount of the investment, including dividends received or receivable from the associate.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about therelevant activities require the unanimous consent of the parties sharing control. Joint ventures are joint arrangements whereby
Rural Northwest Health, via its joint control of the arrangement, has rights to the net assets of the arrangements.
Interests in joint ventures are accounted for in the financial statements using the equity method, as applied to investments in associates and are disclosed as required by AASB 12.
Investments in joint operations
In respect of any interest in joint operations, Rural Northwest 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.
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) isderecognised when: - the rights to receive cash flows from the asset have expired; or - Rural Northwest Health retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in fullwithout material delay to a third party under a 'pass through' arrangement; or - Rural Northwest Health has transferred its rights to receive cash flows from the asset and either:
(a) has transferred substantially all the risks and rewards of the asset; or(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where Rural Northwest Health has neither transferred nor retained substantially all the risks and rewards or transferred control,the asset is recognised to the extent of the Rural Northwest Health's continuing involvement in the asset.
Impairment of financial assets
At the end of each reporting period Rural Northwest Health assesses whether there is objective evidence that a financialasset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments,debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instruments assets,except those measured at fair value through profit or loss, are subject to annual review for impairment.
Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as writtenoff and allowance for doubtful receivables are expensed. Bad debts written off by mutual consent and the allowance for doubtful debts are classified as 'other comprehensive income' in the net result.
The amount of the allowance is the difference between the financial asset's carrying amount and the present value ofestimated future cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professionaljudgement is applied in assessing materiality using estimates, averages and other computational methods in accordancewith AASB 136 Impairment of Assets.
15
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(l) Liabilities
Payables
Payables consist of:• contractual payables which consist predominantly of accounts payable representing liabilities for goods and services
provided to Rural Northwest Health prior to the end of the financial year that are unpaid, and arise when Rural Northwest Health becomes obliged to make future payments in respect of the purchase of those goods and services. The normal credit terms for accounts payable are usually Nett 30 days.
• statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.
Provisions
Provisions are recognised when Rural Northwest Health has a present obligation, the future sacrificeof 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 settlethe present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settlethe present obligation, its carrying amount is the present value of those cash flows, using a discountrate that reflects the time value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received from a third party,the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of thereceivable can be measured reliably.
Employee benefits
This provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service leavefor services rendered to the reporting date.
Wages and Salaries, Annual Leave and Accrued Days Off
Liabilities for wages and salaries, including non-monetary benefits and annual leave are all recognised in the provision for employee benefits as ‘current liabilities’, because Rural Northwest Health does not have an unconditional right to defersettlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:• Undiscounted value – if Rural Northwest Health expects to wholly settle within 12 months; or• Present value – if Rural Northwest Health does not expect to wholly settle within 12 months.
Long Service Leave (LSL)
Liability for LSL is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where Rural Northwest Health does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:• Undiscounted value – if Rural Northwest Health expects to wholly settle within 12 months; and• Present value – if Rural Northwest Health does not expect to wholly settle within 12 months.
Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised as a transaction.
16
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(l) Liabilities (Continued)
Employee benefits (Continued)
Termination Benefits
Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment.
Rural Northwest Health recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
On-Costs
Provisions for on-costs, such as payroll tax, workers compensation, superannuation are recognised together with the provision for employee benefits.
Superannuation liabilities
Rural Northwest Health does not recognise any unfunded defined benefit liability in respect of thesuperannuation plans because Rural Northwest Health has no legal or constructive obligation to pay future benefitsrelating to its employees; its only obligation is to pay superannuation contributions as they fall due.
(m) Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.
Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
For service concession arrangements, the commencement of the lease term is deemed to be the date the asset is commissioned.
All other leases are classified as operating leases.
Finance leases
Entity as lessor
Rural Northwest Health does not hold any finance lease arrangements with other parties.
Operating leases
Entity as lessor
Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.
All incentives for the agreement of a new or renewed operating lease are recognised as an integralpart of the net consideration agreed for the use of the leased asset, irrespective of the incentive's natureor form or the timing of payments.
In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a reduction of rental income over the lease term, on a straight-line basis unless another systematic basis is more appropriate of the time pattern over which the economic benefit of the leased asset is diminished.
Entity as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is morerepresentative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.
17
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(m) Leases (Continued)
Lease incentives
All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive's nature or form or the timing of payments.
In the event that lease incentives are received by the lessee to enter into operating leases, such incentives are recognised as a liability. The aggregate benefits of incentives are recognised as a reduction of rental expenseon a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset is diminished.
Leasehold Improvements
The cost of leasehold improvements are capitalised as an asset and depreciated over the remaining term ofthe lease or the estimated useful life of the improvements, whichever is the shorter.
(n) Equity
Contributed Capital
Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities
and FRD 119A Contributions by Owners , appropriations for additions to the net asset base have been designated as contributed
capital. Other transfers that are in the nature of contributions to or distributions by owners, that have been designated as contributed capital are also treated as contributed capital.
Property, plant and equipment revaluation surplus
The asset revaluation surplus is used to record increments and decrements on the revaluation ofnon-current physical assets.
Specific restricted purpose surplus
A specific restricted purpose surplus is established where Rural Northwest Health has possession or title to the funds but has no discretion to amend or vary the restriction and/or condition underlying the funds received.
(o) Commitments
Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments aredisclosed by way of a note (refer to note 25) at their nominal value and are inclusive of the goods and services tax ("GST")payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net presentvalues of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once therelated liabilities are recognised on the balance sheet.
(p) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presentedinclusive of GST receivable or payable respectively.
(q) Goods and Services Tax ("GST")
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case 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 taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow.
Commitments for expenditure and contingent assets and liabilities are presented on a gross basis.
18
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(r) AASs issued that are not yet effective
Certain new Australian accounting standards and interpretations have been published that are not mandatory for the 30 June 2015 reporting period.
As at 30 June 2015, 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. Rural Northwest Health has not and does not intend to adopt these standards early.
Standard / Summary Applicable for Impact on Health
Interpretation reporting periods Service's Annual
beginning on Statements
AASB 9 Financial Instruments The key changes include the simplified 1 Jan 2018 The assessment has identified that the requirements for the classification and financial impact of available for sale measurement of financial assets, a (AFS) assets will now be reported new hedging accounting model and a through other comprehensive incomerevised impairment loss model to (OCI) and no longer recycled to the recognise impairment losses earlier, profit and loss.as opposed to the current approach that recognises impairment only when While the preliminary assessment has incurred. not identified any material impact arising
from AASB 9, it will continue to be monitored and assessed.
AASB 15 Revenue from The core principle of AASB 15 requires 1 Jan 2017 The changes in revenue recognition Contracts with Customers an entity to recognise revenue when requirements in AASB 15 may result in
the entity satisfies a performance (Exposure Draft changes to the timing and amount of obligation by transferring a promised 263 – potential revenue recorded in the financial good or service to a customer. deferral to 1 Jan statements. The Standard will also
2018) require additional disclosures on service revenue and contract modifications.
A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding.
19
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(r) AASs issued that are not yet effective (Continued)
Standard / Summary Applicable for Impact on Health
Interpretation reporting periods Service's Annual
beginning on Statements
AASB 2014‑1 Amendments to Amends various AASs to reflect the 1 Jan 2018 This amending standard will defer the Australian Accounting Standards AASB's decision to defer the mandatory application period of AASB 9 to the [Part E Financial Instruments] application date of AASB 9 to annual 2018-19 reporting period in accordance
reporting periods beginning on or after with the transition requirements.1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.
AASB 2014‑4 Amendments to Amends AASB 116 Property, Plant and 1 Jan 2016 The assessment has indicated that Australian Accounting Equipment and AASB 138 Intangible there is no expected impact as the Standards – Clarification of Assets to: revenue-based method is not used for Acceptable Methods of - establish the principle for the basis depreciation and amortisation. Depreciation and Amortisation of depreciation and amortisation as [AASB 116 & AASB 138] being the expected pattern of
consumption of the future economic benefits of an asset;
- prohibit the use of revenue‑based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.
AASB 2014‑9 Amendments to Amends AASB 127 Separate Financial 1 Jan 2016 The assessment indicates that there is Australian Accounting Statements to allow entities to use the no expected impact as the entity will Standards – Equity Method in equity method of accounting for continue to account for the investments Separate Financial Statements investments in subsidiaries, joint in subsidiaries, joint ventures and
ventures and associates in their associates using the cost method as [AASB 1, 127 & 128] separate financial statements. mandated if separate financial
statements are presented in accordance with FRD 113A.
20
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(r) AASs issued that are not yet effective (Continued)
AASB 2014‑10 Amendments to AASB 2014-10 amends AASB 10 1 Jan 2016 The assessment has indicated that Australian Accounting Consolidated Financial Statements there is limited impact, as the revisions Standards – Sale or Contribution and AASB 128 Investments in to AASB 10 and AASB 128 are guidance of Assets between an Investor Associates to ensure consistent in nature.and its Associate or Joint Venture treatment in dealing with the sale or [AASB 10 & AASB 128] contribution of assets between an
investor and its associate or joint venture. The amendments require that:
- a full gain or loss to be recognised by the investor when a transaction involves a business (whether it is housed in a subsidiary or not); and
- a partial gain or loss to be recognised by the parent when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.
AASB 2015‑6 Amendments to The Amendments extend the scope of 1 Jan 2016 The amending standard will result in Australian Accounting AASB 124 Related Party Disclosures to extended disclosures on the entity's key Standards – Extending Related not-for-profit public sector entities. A management personnel (KMP), and the Party Disclosures to Not-for-Profit guidance has been included to assist related party transactions. Public Sector Entities the application of the Standard by [AASB 10, AASB 124 & not-for-profit public sector entities. AASB 1049]
In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2014-15 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.
- AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). - AASB 2014‑3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations
[AASB 1 & AASB 11] - AASB 2014‑5 Amendments to Australian Accounting Standards arising from AASB 15 - AASB 2014‑7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) - AASB 2014‑8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)] - AASB 2015‑2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101,
AASB 134 & AASB 1049] - AASB 2015‑3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality
21
Rural Northwest Health
Notes to the Financial Statements
30 June 2015
(s) Category Groups
The Rural Northwest Health has used the following category groups for reporting purposes for thecurrent and previous financial years.
Admitted Patient Services (Admitted Patients) comprises all acute and subacute admitted patients services, where services
are delivered in public hospitals.
Aged Care comprises a range of in home, specialist geriatric, residential care and community based programs and support services,
such as Home and Community Care (HACC) that are targeted to older people, people with a disability, and their carers.
Primary, Community and Dental Health comprises a range of home based, community based, community, primary health and
dental services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy and a range of dental health services.
Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential
services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from the department under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health funded community care units and secure extended care units.
Other Services not reported elsewhere - (Other) comprises services not separately classified above, including: Public Health
Services including laboratory testing, blood borne viruses / sexually transmitted infections clinical services, Kooris liaison officers, immunisation and screening services, drugs services including drug withdrawal, counselling and the needle and syringe program, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.
22
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
Note 2: ANALYSIS OF REVENUE BY SOURCE Admitted Residential Aged Primary Other TOTAL
Patients Aged Care Care Health
2015 2015 2015 2015 2015 2015
$'000 $'000 $'000 $'000 $'000 $'000
Government Grants 7,472 6,486 415 1,535 0 15,908
Indirect Contributions by Department of Health and Human
Services 15 0 0 0 0 15
Patient and Resident Fees 466 1,529 0 0 162 2,157
Other Revenue from Operating Activities 127 14 159 233 193 726
Total Revenue from Operating Activities 8,080 8,029 574 1,768 355 18,806
Interest and Dividends 427 27 0 0 0 454
Total Revenue from Non-Operating Activities 427 27 0 0 0 454
Capital Purpose Income (excluding interest) 50 115 0 1 417 583
Total Capital Purpose Income 50 115 0 1 417 583
TOTAL REVENUE 8,557 8,171 574 1,769 772 19,843
23
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
Note 2: ANALYSIS OF REVENUE BY SOURCE (Continued) Admitted Residential Aged Primary Other TOTAL
Patients Aged Care Care Health
2014 2014 2014 2014 2014 2014
$'000 $'000 $'000 $'000 $'000 $'000
Government Grants 8,824 4,888 1,443 510 18 15,683
Indirect Contributions by Department of Health (133) 0 0 0 0 (133)
Patient and Resident Fees 430 1,320 0 0 0 1,750
Grampians Rural Health Alliance Operating Revenue 0 0 0 0 279 279
Other Revenue from Operating Activities 0 0 0 0 671 671
Total Revenue from Operating Activities 9,121 6,208 1,443 510 968 18,249
Property Income 0 0 0 0 110 110
Interest and Dividends 0 0 0 0 484 484
Total Revenue from Non-Operating Activities 0 0 0 0 594 594
Capital Purpose Income (excluding interest) 144 466 0 0 94 704
Total Capital Purpose Income 144 466 0 0 94 704
TOTAL REVENUE 9,265 6,674 1,443 510 1,656 19,548
Indirect contributions by Department of Health (1 July 2014 - 31 December 2014)/Department of Health and Human Services
(1 Jan 2015 - 30 June 2015)
Department of Health/Department of Health and Human Services makes certain payments on behalf of the Health Service.
These amounts have been brought to account in determining the operating result for the year by recording them as revenue
and expenses.
NOTE 2a: NET GAIN/(LOSS) ON DISPOSAL OF NON-FINANCIAL ASSETS 2015 2014
$'000 $'000
Proceeds from Disposal of Non-Current Assets
- Motor Vehicles 5 98
Total Proceeds from Disposal of Non-Current Assets 5 98
Less: Written Down Value of Non-Current Assets Sold
- Motor Vehicles 0 83
Total Written Down Value of Non-Current Assets Sold 0 83
NET GAIN/(LOSS) ON DISPOSAL OF NON-FINANCIAL ASSETS 5 15
24
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
Note 3: ANALYSIS OF EXPENSES BY SOURCE Admitted Residential Aged Primary Other TOTAL
Patients Aged Care Care Health
2015 2015 2015 2015 2015 2015
$'000 $'000 $'000 $'000 $'000 $'000
Employee Benefits 4,018 7,981 401 1,453 103 13,956
Non Salary Labour Costs 174 73 0 0 0 247
Supplies and Consumables 772 258 19 26 153 1,228
Other Expenses 2,384 642 39 261 276 3,602
Total Expenditure from Operating Activities 7,348 8,954 459 1,740 532 19,033
Depreciation (refer note 4) 0 0 0 0 2,403 2,403
Expenditure for Capital Purposes 0 0 0 0 66 66
Total Other Expenses 0 0 0 0 2,469 2,469
TOTAL EXPENSES 7,348 8,954 459 1,740 3,001 21,502
Admitted Residential Aged Primary Other TOTAL
Patients Aged Care Care Health
2014 2014 2014 2014 2014 2014
$'000 $'000 $'000 $'000 $'000 $'000
Employee Benefits 3,782 7,712 83 1,862 98 13,537
Non Salary Labour Costs 306 1 0 0 11 318
Supplies and Consumables 394 594 44 15 26 1,072
Other Expenses 1,115 1,145 155 464 803 3,681
Total Expenditure from Operating Activities 5,595 9,452 280 2,342 938 18,606
Depreciation (refer note 4) 946 1,244 6 79 19 2,294
Total Other Expenses 946 1,244 6 79 19 2,294
TOTAL EXPENSES 6,541 10,696 286 2,421 957 20,900
25
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 4: DEPRECIATION 2015 2014
$'000 $'000
Depreciation
Buildings 2,095 1,881
Land Improvements 16 105
Plant and Equipment 69 98
Medical Equipment 82 78
Computers and Communications 42 33
Furniture and Fittings 46 47
Motor Vehicles 40 44
Grampians Rural Health Alliance Depreciation 13 9
TOTAL DEPRECIATION 2,403 2,294
NOTE 5: CASH AND CASH EQUIVALENTS
For the purposes of the cash flow statement, cash assets includes cash on hand and
in banks, and short-term deposits which are readily convertible to cash on hand, and are 2015 2014
subject to an insignificant risk of change in value, net of outstanding bank overdrafts. $'000 $'000
Cash on Hand 2 2
Cash at Bank 2,064 2,228
Deposits at Call 307 198
TOTAL CASH AND CASH EQUIVALENTS 2,373 2,428
Represented by:
Cash for Health Service Operations (as per cash flow statement) 2,033 2,084
Cash for Monies Held in Trust
- Cash at Bank 307 198
- Short Term Money Market 0 100
- Grampians Rural Health Alliance 33 46
TOTAL CASH AND CASH EQUIVALENTS 2,373 2,428
NOTE 6: RECEIVABLES 2015 2014
$'000 $'000
CURRENT
Contractual
Patient Fees 203 448
Accrued Investment Income 18 86
Accrued Revenue - Other 0 1
Trade Debtors 33 0
Grampians Rural Health Alliance 26 35
Less Allowance for Doubtful Debts (9) (2)
271 568
Statutory
GST Receivable 328 93
328 93
TOTAL CURRENT RECEIVABLES 599 661
NON CURRENT
Statutory
Long Service Leave - Department of Health and Human Services 0 20
TOTAL NON-CURRENT RECEIVABLES 0 20
TOTAL RECEIVABLES 599 681
(a) Movement in the Allowance for doubtful debts
Balance at beginning of the year (2) (2)
Increase in allowance recognised in net result (7) 0
Balance at end of the year (9) (2)
(b) Ageing analysis of receivables
Please refer to note 17(b) for the ageing analysis of receivables.
(c) Nature and extent of risk arising from receivables
Please refer to note 17(b) for the nature and extent of credit risk arising from contractual receivables.
26
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 7: INVESTMENTS AND OTHER FINANCIAL ASSETS 2015 2014
$'000 $'000
CURRENT
Loans and receivables
Term Deposit
Aust. Dollar Term Deposits > 3 months 11,380 10,050
Total Current 11,380 10,050
TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 11,380 10,050
Represented by:
Health Service Investments 8,816 7,442
Accommodation Bonds (Refundable Entrance Fees) 2,564 2,608
TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 11,380 10,050
(b) Ageing analysis of other investments and financial assets
Please refer to note 17(b) for the ageing analysis of investments and other financial assets.
(c) Nature and extent of risk arising from investments and other financial assets
Please refer to note 17(b) for the nature and extent of credit risk arising from investments and other financial assets.
In accordance with Standing Direction 4.5.6, the Health Service is required to invest surplus funds with TCV/VFMC. At 30 June 2015, the Health Service
is compliant with this Standing Direction.
NOTE 8: INVENTORIES 2015 2014
$'000 $'000
Pharmaceuticals - at cost 13 14
Medical and Surgical Lines - at cost 52 47
Administration Stores - at cost 0 2TOTAL INVENTORIES 65 63
Inventories held by the Health Service are held for short periods of time with regular turnover. There is no material loss of
service potential in inventories held at the end of the year.
NOTE 9: PREPAYMENTS AND OTHER ASSETS 2015 2014
$'000 $'000
Prepayments 149 122
Grampians Rural Health Alliance 4 3
TOTAL OTHER ASSETS 153 125
27
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT 2015 2014
(a) Gross carrying amount and accumulated depreciation $'000 $'000
Land
- Land at Fair Value 1,776 1,776
1,776 1,776
Total Land 1,776 1,776
Buildings
- Buildings at Fair Value 34,928 34,822
Less Accumulated Depreciation (2,112) 0
32,816 34,822
Assets Under Construction
- Assets Under Construction at cost 5,973 120
Total Assets Under Construction 5,973 120
Total Buildings 38,789 34,942
Plant and Equipment
- Plant and Equipment at Fair Value 1,989 1,900
Less Accumulated Depreciation (1,556) (1,489)
- Assets Under Construction 0 10
- Grampians Rural Health Alliance 134 129
Less Accumulated Depreciation (73) (63)
Total Plant and Equipment 494 487
Computers and Communications
- Computers and Communications 369 318
Less Accumulated Depreciation (275) (231)
94 87
Medical Equipment
- Medical Equipment 1,200 1,152
Less Accumulated Depreciation (815) (733)
385 419
Furniture and Fittings
- Furniture and Fittings at Fair Value 827 780
Less Accumulated Depreciation (636) (590)
Total Furniture and Fittings 191 190
Motor Vehicles
- Motor Vehicles at Fair Value 603 577
Less Accumulated Depreciation (397) (384)
Total Motor Vehicles 206 193
TOTAL 41,935 38,094
28
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued)
(b) Reconciliation of the carrying amounts of each class of asset
Land Buildings & Plant & Computers & Medical Furniture Motor Total
Land Improv. Equipment Commun. Equipment & Fittings Vehicles
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 July 2013 1,019 33,890 534 72 303 219 210 36,247
Additions 0 168 30 54 203 18 110 583
Revaluation 342 3,279 0 0 0 0 0 3,621
Grampians Rural Health Alliance 0 0 21 0 0 0 0 21
Net Transfers between classes 520 (514) 0 (6) 0 0 0 0
Disposals 0 0 0 0 0 0 (83) (83)
Depreciation (105) (1,881) (98) (33) (87) (47) (44) (2,295)
Balance at 1 July 2014 1,776 34,942 487 87 419 190 193 38,094
Additions 0 5,958 81 49 48 47 53 6,236
Revaluation 0 0 0 0 0 0 0 0
Grampians Rural Health Alliance 0 0 8 0 0 0 0 8
Net Transfers between classes 0 0 0 0 0 0 0 0
Disposals 0 0 0 0 0 0 0 0
Depreciation 0 (2,111) (82) (42) (82) (46) (40) (2,403)
Balance at 30 June 2015 1,776 38,789 494 94 385 191 206 41,935
Land and buildings carried at valuation
An independent valuation of the Health Service's land and buildings was performed by the Valuer-General Victoria to determine the fair value of the
land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets
could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments.
The effective date of the valuation is 30 June 2014.
Fair value of plant and equipment has been assessed by management in accordance with Financial Reporting Direction 103F.
Management have obtained second-hand values for equipment where possible, or completed an assessment of value based on depreciated
replacement cost.
29
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued)
(c) Fair value measurement hierarchy for assets as at 30 June 2015
Level 1 (i) Level 2 (i) Level 3 (i)
$'000 $'000 $'000 $'000 $'000
Land at fair value
Specialised land 1,776 0 0 0 1,776
Non Specialised land 0 0 0 0 0Total of land at fair value 1,776 0 0 0 1,776
Buildings at fair value
Specialised buildings 32,816 0 0 0 32,816
Non Specialised buildings 0 0 0 0 0Total of building at fair value 32,816 0 0 0 32,816
Plant and equipment at fair value
Plant equipment and vehicles at fair value
- Vehicles (ii) 206 0 0 206 0
- Plant and equipment 779 0 0 0 779Total of plant, equipment and vehicles at fair value 985 0 0 206 779
Medical equipment at fair value 385 0 0 0 385Total medical equipment at fair value 385 0 0 0 385
Assets under construction at cost 5,973 5,973 0 0 0Total assets under construction at cost 5,973 5,973 0 0 0
Note
(i) Classified in accordance with the fair value hierarchy, see Note 1
(ii) Vehicles are categorised to Level 3 assets if the depreciated replacement cost is used in estimating the fair value. Where a market approach
is considered appropriate due to an active resale market, a Level 2 categorisation for such vehicles is applied.
There have been no transfers between levels during the period.
Fair value measurement hierarchy for assets as at 30 June 2014
Level 1 (1) Level 2 (1) Level 3 (1)
$'000 $'000 $'000 $'000 $'000
Land at fair value
Specialised land 1,206 0 0 0 1,206
Non Specialised land 570 0 0 570 0Total of land at fair value 1,776 0 0 570 1,206
Buildings at fair value
Specialised buildings 33,128 0 0 0 33,128
Non Specialised buildings 1,694 0 0 1,694 0Total of building at fair value 34,822 0 0 1,694 33,128
Plant and equipment at fair value
Plant equipment and vehicles at fair value
- Vehicles (ii) 193 0 0 193 0
- Plant and equipment 754 0 0 0 754Total of plant, equipment and vehicles at fair value 947 0 0 193 754
Medical equipment at fair value 419 0 0 0 419Total medical equipment at fair value 419 0 0 0 419
Assets under construction at cost 130 130 0 0 0Total assets under construction at cost 130 130 0 0 0
Note
(i) Classified in accordance with the fair value hierarchy, see Note 1
(ii) Vehicles are categorised to Level 3 assets if the depreciated replacement cost is used in estimating the fair value. Where a market approach
is considered appropriate due to an active resale market, a Level 2 categorisation for such vehicles is applied.
There have been no transfers between levels during the period.
Carrying
amount as
at 30 June
2015
Carrying
amount as
at 30 June
2014 At cost
Fair value measurement at end of reporting
period using:
At cost
Fair value measurement at end of reporting
period using:
30
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued)
Specialised land and specialised buildings
The market approach is also used for specialised land and specialised buildings although it is adjusted for the community service obligation
(CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments;
therefore these assets are classified as Level 3 under the market based direct comparison approach.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is
also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value
measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible.
As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.
For the health services, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the
associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised
buildings are classified as Level 3 for fair value measurements.
An independent valuation of the Health Service’s specialised land and specialised buildings was performed by the Valuer-General Victoria.
The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2014.
Non-specialised land and Buildings
Non-specialised land and non-specialised buildings are valued using the market approach. Under this valuation method, the assets are compared to
recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.
For non-specialised land and non-specialised buildings, an independent valuation was performed by independent valuers
Valuer-General Victoria to determine the fair value using the market approach.
Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other
relevant factors specific to the asset being valued. An appropriate rate per square metre has been applied to the subject asset.
The effective date of the valuation is 30 June 2014.
To the extent that non-specialised land and non-specialised buildings do not contain significant, unobservable adjustments,
these assets are classified as Level 2 under the market approach.
Vehicles
The Health Service acquires new vehicles and at times disposes of them before completion of their economic life.
The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates
during use to reflect the consumption of the vehicles. Where the fair value of vehicles differs materially from the carrying
value (depreciated cost), the service revalues them based on current market value.
Plant and equipment
Plant and equipment is held at carrying value (depreciated cost). When plant and equipment is specialised in use, such that it is rarely
sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market
evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that
depreciated replacement cost will be materially different from the existing carrying value.
There were no changes in valuation techniques throughout the period to 30 June 2015.
For all assets measured at fair value, the current use is considered the highest and best use.
31
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued)
(d) Reconciliation of Level 3 fair value as at 30 June 2015
Land Buildings
Plant and
equipment
Medical
equipment
$'000 $'000 $'000 $'000
Opening Balance 1,206 33,128 754 419
Purchases (sales) and reclassifications 653 1,500 195 48
Gains or losses recognised in net result
- Depreciation (83) (1,812) (170) (82)
- Impairment loss 0 0 0 0Subtotal 1,776 32,816 779 385
Items recognised in other comprehensive income
- Revaluation 0 0 0 0
Subtotal 0 0 0 0Closing Balance 1,776 32,816 779 385
Unrealised gains/(losses) on non-financial assets 0 0 0 01,776 32,816 779 385
There have been no transfers between levels during the period.
(d) Reconciliation of Level 3 fair value as at 30 June 2014
Land Buildings
Plant and
equipment
Medical
equipment
$'000 $'000 $'000 $'000
Opening Balance 281 33,212 815 303
Purchases (sales) and reclassifications 520 (346) 117 203
Gains or losses recognised in net result
- Depreciation (83) (1,812) (178) (87)
- Impairment loss 0 0 0 0Subtotal 718 31,054 754 419
Items recognised in other comprehensive income
- Revaluation 488 2,074 0 0
Subtotal 488 2,074 0 0Closing Balance 1,206 33,128 754 419
Unrealised gains/(losses) on non-financial assets 0 0 0 01,206 33,128 754 419
There have been no transfers between levels during the period.
32
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT (Continued)
(e) Description of significant unobservable inputs to Level 3 valuations:
Valuation technique Significant unobservable inputs
Market Approach Community Service Obligation (CSO)
Specialised Buildings Depreciated Replacement Cost Direct cost per square metre
Useful life of specialised buildings
Plant and equipment at fair value Depreciated Replacement Cost Cost per Unit
Useful life of PPE
Assets Under Construction Depreciated Replacement Cost Cost per Unit
NOTE 11: PAYABLES 2015 2014
CURRENT $'000 $'000
Contractual
Trade Creditors 537 383
Grampians Rural Health Alliance 14 35
Accrued Expenses 160 208
Commonwealth Aged Care Funding 24 0
Accrued Audit Fees 22 19
757 644
Statutory
Department of Health / Department of Health and Human Services - Accrued Grant Recall 95 0
Australian Taxation Office - Fringe Benefits Tax 8 5
103 5
TOTAL PAYABLES 860 649
(a) Maturity analysis of payables
Please refer to Note 17(c) for the ageing analysis of payables.
(b) Nature and extent of risk arising from payables
Please refer to note 17(c) for the nature and extent of risks arising payables.
Specialised land
33
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 12: PROVISIONS 2015 2014
$'000 $'000
Current Provisions
Employee Benefits (Note 13(a))(i)
Accrued Wages, Superannuation, ADO & Annual Leave (Note 13(a))
- unconditional and expected to be settled within 12 months (ii) 1,353 1,226
- unconditional and expected to be settled after 12 months (iii) 227 227
Long Service Leave (Note 13(a))
- unconditional and expected to be settled within 12 months (ii) 250 250
- unconditional and expected to be settled after 12 months (iii) 1,214 1,057
3,044 2,760
Provisions related to employee benefit on-costs
- unconditional and expected to be settled within 12 months (ii) 149 136
- unconditional and expected to be settled after 12 months (iii) 170 154
319 290Total Current Provisions 3,363 3,050
Non-Current Provisions
Employee Benefits (i) (Note 13(a))
Long Service Leave (Note 13(a))
- conditional and expected to be settled after 12 months (iii) 313 322
Provisions related to employee benefit on-costs (Note 13(a) and Note 13(b))
- conditional and expected to be settled after 12 months (iii) 34 35Total Non-Current Provisions 347 357
Total Provisions 3,710 3,407
(a) Employee Benefits and Related On-Costs
Current Employee Benefits and related on-costs
Annual Leave Entitlements 1,253 1,170
Accrued Salaries and Wages 299 260
Accrued Days Off 42 39
Unconditional Long Service Leave Entitlements 1,625 1,451
Superannuation 144 130
3,363 3,050
Non-Current Employee Benefits and related on-costs
Conditional Long Service Leave Entitlements (iii) 347 357
Total Employee Benefits and Related On-Costs 3,710 3,407
(b) Movements in provisions
Movement in Long Service Leave
Balance at start of year 1,808 1,859
Provision made during the year
- Revaluations 51 (8)
- Expense recognising Employee Service 245 193
Settlement made during the year (132) (236)
Balance at end of year 1,972 1,808
Notes:
(i) Employee benefits consist of annual leave and long service leave accrued by employees. On-costs such as payroll tax and worker's compensation
insurance are not employee benefits and are reflected as a separate provision.
(ii) The amounts disclosed are at nominal values
(iii) The amounts disclosed are at present values
34
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 13: SUPERANNUATION
Employees of the Health Service are entitled to receive superannuation benefits and the Health Service contributes to both defined benefit
and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.
The Health Service does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive
obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The
Department of Treasury and Finance discloses the State's defined benefits liabilities in tis 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 expense in relation to the major employee
superannuation funds and contributions made by the Health Services are as follows:
Fund
2015 2014 2015 2014
$'000 $'000 $'000 $'000
Defined Contribution Plans: Health Super 903 914 106 86
HESTA 273 197 8 18
1,176 1,111 114 104
NOTE 14: OTHER LIABILITIES 2015 2014
$'000 $'000
CURRENT
Monies Held in Trust*
- Patient Monies Held in Trust 93 71
- Accommodation Bonds (Refundable Entrance Fees) 2,778 2,835
2,871 2,906
TOTAL OTHER LIABILITIES 2,871 2,906
* Total Monies Held in Trust
Represented by the following assets:
Cash Assets (refer to Note 5) Trust Funds and Short Term Money Market 307 298
Investment and Other Financial Assets (refer to Note 7) 2,564 2,608
TOTAL 2,871 2,906
at Year End
Paid Contributions for
the Year
Outstanding Contributions
35
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 15: EQUITY 2015 2014
(a) Surpluses
Property, Plant and Equipment Revaluation Surplus ¹
Balance at beginning of the reporting period
- Land 468 126
- Buildings 12,051 8,772
Revaluation Increment/(Decrement)
- Land 0 342
- Buildings 0 3,279Balance at the end of the reporting period 12,519 12,519
Represented by:
- Land 468 468
- Buildings 12,051 12,051
12,519 12,519
(1) The property, plant and equipment asset revaluation reserve arises on the revaluation of property, plant and equipment.
Restricted Specific Purpose Surplus
Balance at the beginning of the reporting period 113 113
Balance at the end of the reporting period 113 113
Total Surpluses 12,632 12,632
(b) Contributed Capital
Balance at the beginning of the reporting period 20,935 20,935
Capital Contribution received from Victorian Government 6,243 0
Balance at the end of the reporting period 27,178 20,935
(c) Accumulated Surpluses/(Deficits)
Balance at the beginning of the reporting period 10,912 12,266
Net Result for the Year (1,659) (1,354)
Balance at the end of the reporting period 9,253 10,912
Total Equity at end of financial year 49,063 44,479
NOTE 16: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH
INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES 2015 2014
$'000 $'000
NET RESULT FOR THE PERIOD (1,659) (1,355)
Non-cash movements
Depreciation 2,390 2,286
Provision for Doubtful Debts 7 0
Share of Net Result from Joint Ventures 7 (13)
Movements included in investing and financing activities
Net (Gain)/Loss from Sale of Plant and Equipment (5) (15)
Movements in assets and liabilities
Change in Operating Assets & Liabilities
(Increase)/Decrease in Receivables 66 0
(Increase)/Decrease in Inventories (2) 4
(Increase)/Decrease in Prepayments (27) (75)
Increase/(Decrease) in Payables 231 (27)
Increase/(Decrease) in Provisions 303 (50)
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 1,311 755
36
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS
(a) Financial Risk Management Objectives and Policies
Rural Northwest Health's principal financial instruments comprise of:
- Cash Assets
- Receivables (excluding statutory receivables)
- Payables (excluding statutory payables)
- Accommodation Bonds
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset,
financial liability and equity instrument are disclosed in Note 1 to the financial statements.
The Health Service's main financial risks include credit risk, liquidity risk and interest rate risk. The Health Service manages these
financial risks in accordance with its financial risk management policy.
The Health Service uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the
identification and management of financial risks rests with the financial risk management committee of the Health Service.
The main purpose in holding financial instruments is to prudentially manage Rural Northwest Health
financial risk within the government policy parameters.
Categorisation of financial instruments
Contractual
financial assets -
loans and
receivables
Contractual
financial liabilities at
amortised cost Total
2015 $'000 $'000 $'000
Contractual Financial Assets
Cash and cash equivalents 2,373 0 2,373
Receivables 271 0 271
Other Financial Assets
- Term Deposits 11,380 0 11,380
Total Financial Assets (i) 14,024 0 14,024
Financial Liabilities
Payables 0 757 757
Other Financial Liabilities
- Monies Held in Trust 0 2,871 2,871
Total Financial Liabilities(ii) 0 3,628 3,628
(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable)
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payable)
37
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS (Continued)
Contractual
financial assets -
loans and
receivables
Contractual
financial liabilities at
amortised cost Total
2014 $'000 $'000 $'000
Contractual Financial Assets
Cash and cash equivalents 2,428 0 2,428
Receivables 568 0 568
Other Financial Assets
- Term Deposits 10,050 0 10,050
Total Financial Assets (i) 13,046 0 13,046
Financial Liabilities
Payables 0 644 644
Other Financial Liabilities
- Monies Held in Trust 0 2,906 2,906
Total Financial Liabilities(ii) 0 3,549 3,549
(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable)
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payable)
Net holding gain/(loss) on financial instruments by category
Total interest
income/
(expense) Total
$'000 $'000
2015
Financial Assets
Loans and Receivables(i) 454 454
Total Financial Assets 454 454
2014
Financial Assets
Loans and Receivables(i) 484 484
Total Financial Assets 484 484
(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the interest
revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in
the net result.
(b) Credit Risk
Credit risk arises from the contractual financial assets of the Health Service, which comprise cash and deposits, non-statutory
receivables and available for sale contractual financial assets. The Health Service's exposure to credit risk arises from the
potential default of a counter party on their contractual obligations resulting in financial loss to the Health Service. Credit risk is
measured at fair value and is monitored on a regular basis.
Credit risk associated with the Health Service's contractual financial assets is minimal because the main debtor is the Victorian
Government. For debtors other than the Government, it is the Health Service's policy to only deal with entities with high credit
ratings of a minimum Triple-B rating and to obtain sufficient collateral or credit enhancements, where appropriate.
In addition, the Health Service does not engage in hedging for its contractual financial assets and mainly obtains contractual
financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors,
the Health Service's policy is to only deal with banks with high credit ratings.
Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Health Service
will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts
which are more than 60 days overdue, and changes in debtor credit ratings.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial
statements, net of any allowances for losses, represents Rural Northwest Health maximum exposure to credit risk without
taking account of the value of any collateral obtained.
38
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS (Continued)
(b) Credit Risk (Continued)
Credit quality of contractual financial assets that are neither past due nor impaired
Financial Government Government Other Total
Institutions agencies agencies (Not Rated)
(Min BB (AAA credit (BBB credit
credit rating) rating) rating)
2015 $000 $000 $000 $000 $000
Financial Assets
Cash and Cash Equivalents 2,373 0 0 0 2,373
Loans and Receivables
- Trade Debtors 0 0 0 204 204
- Other Receivables (i) 0 0 0 67 67
- Term Deposit 4,080 7,300 0 0 11,380Total Financial Assets 6,453 7,300 0 271 14,024
2014
Financial Assets
Cash and Cash Equivalents 2,428 0 0 0 2,428
Loans and Receivables
- Trade Debtors 0 0 0 448 448
- Term Deposit 10,050 0 0 0 10,050
- Other Receivables (i) 0 0 0 120 120Total Financial Assets 12,478 0 0 568 13,046
(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and
GST input tax credit recoverable).
Ageing analysis of financial asset as at 30 June
Total Not Past Less than 1 - 3 3 Months 1 - 5 Impaired
Carrying due and not 1 Month Months - 1 Year Years Financial
Amount impaired Assets
2015 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial Assets
Cash and Cash Equivalents 2,373 2,373 0 0 0 0 0
Loans and Receivables (i)
- Other Receivables 271 237 25 9 0 0 0
- Term Deposits 11,380 11,380 0 0 0 0 0
Total Financial Assets 14,023 13,990 25 9 0 0 0
2014
Financial Assets
Cash and Cash Equivalents 2,428 2,428 0 0 0 0 0
Loans and Receivables (i)
- Term Deposits 10,050 10,050 0 0 0 0 0
- Other Receivables 568 404 142 5 18 0 0
Total Financial Assets 13,045 12,882 142 5 18 0 0
(i) Ageing analysis of financial assets excludes the types of statutory financial assets (i.e. GST input tax credit)
Contractual financial assets that are neither past due or impaired
There are no material financial assets which are individually determined to be impaired. Currently the Health Service does not hold
any collateral as security nor credit enhancements relating to its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they
are stated at their carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial
assets that are past due but not impaired.
39
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS (Continued)
(c) Liquidity Risk
Liquidity risk is the risk that the Health Service would be unable to meet its financial obligations as and when they fall due. The Health
Service operates under the Government's fair payments policy of setting financial obligations within 30 days and in the event of a dispute,
making payments within 30 days from the date of resolution.
The Health Service's maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face
of the balance sheet. The Health Service manages its liquidity risk as follows:
- Term Deposits and cash held at financial institutions are managed with variable maturity dates and take into
consideration cash flow requirements of the Health Service from month to month.
The following table discloses the contractual maturity analysis for Rural Northwest Health Service financial
liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial
statements.
Maturity analysis of financial liabilities as at 30 June
Total Nominal Less than 1 - 3 3 Months 1 - 5
Carrying Amount 1 Month Months - 1 Year Years
Amount
2015 $'000 $'000 $'000 $'000 $'000 $'000
Financial Liabilities
At amortised cost
Payables 757 757 757 0 0 0
Other Financial Liabilities (i)
- Monies Held in Trust 2,871 2,871 0 0 2,871 0
Total Financial Liabilities 3,628 3,628 757 0 2,871 0
2014
Financial Liabilities
At amortised cost
Payables 644 644 644 0 0 0
Other Financial Liabilities (i)
- Monies Held in Trust 2,906 2,906 0 0 2,906 0
Total Financial Liabilities 3,550 3,550 644 0 2,906 0
(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST payable).
(d) Market Risk
Rural Northwest Health's exposures to market risk are primarily through interest rate risk with only insignificant
exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these
risks are disclosed in the paragraphs below.
Currency Risk
Rural Northwest Health is exposed to insignificant foreign currency risk through its payables relating to
purchases of supplies and consumables from overseas. This is because of a limited amount of purchases
denominated in foreign currencies and a short timeframe between commitment and settlement.
Maturity Dates
40
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS (Continued)
(d) Market Risk (Continued)
Interest Rate Risk
Exposure to interest rate risk's arise primarily through the Rural Northwest Health's' other financial assets.
Minimisation of risk is achieved by mainly holding fixed rate or non-interest bearing financial instruments. For
financial liabilities the Health Service mainly undertake financial liabilities with relatively even maturity profiles.
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Health Service has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts
that are at floating rate.
The Health Service manages this risk by mainly undertaking fixed rate or non-interest bearing financial instruments with relatively even
maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank and bank
overdraft, as financial assets that can be left at floating rate without necessarily exposing the Health Service to significant bad risk, management
monitors movements in interest rates on a daily basis.
Other Price Risk
The Health Service is exposed to normal price fluctuations from time to time through market forces. Where adequate
notice is provided by suppliers, additional purchases are made for long term goods. Supplier contracts are also
in place for major product lines purchased by the Health Service on a monthly basis. These contracts have set price
arrangements and are reviewed on a regular basis.
Interest Rate Exposure of Financial Assets and Liabilities as at 30 June
2015 $'000 $'000 $'000
Financial Assets
Cash and Cash Equivalents 2.10 2,373 0 2,373 0
Loans and Receivables (i)
- Other Receivables 0.00 271 0 0 271 - Term Deposits 2.85 11,380 11,380 0 0
Total Financial Assets 14,024 11,380 2,373 271
Financial Liabilities
At amortised cost
Payables (i) 0.00 757 0 0 757
Other Financial Liabilities - Accommodation Bonds 0.00 2,871 0 0 2,871
Total Financial Liabilities 3,628 0 0 3,628
2014
Financial Assets
Cash and Cash Equivalents 2.60 2,428 0 2,428 0
Loans and Receivables (i)
- Other Receivables 0.00 568 0 0 568 - Term Deposits 3.70 10,050 10,050 0 0
Total Financial Assets 13,046 10,050 2,428 568
Financial Liabilities
At amortised cost
Payables (i) 0.00 644 0 0 644
Other Financial Liabilities - Accommodation Bonds 0.00 2,906 0 0 2,906
Total Financial Liabilities 3,550 0 0 3,550
(i) The carrying amount excludes types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)
Non - Interest
Bearing
Weighted
Average
Effective
Interest
Rate (%)
Carrying Amount
$'000
Interest Rate Exposure
Fixed Interest
Rate
Variable Interest
Rate
41
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS (Continued)
(d) Market Risk (Continued)
Sensitivity Disclosure Analysis
Taking into account past performance, future expectations, economic forecasts, and management's knowledge
and experience of the financial markets, the Rural Northwest Health believes the following movements
are 'reasonably possible' over the next 12 months (base rates are sourced from the Reserve Bank of Australia).
- A shift of 100 basis points up and down in market interest rates (AUD) from year-end rates of 6%; and
- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2%.
The following table discloses the impact on net operating result and equity for each category of interest bearing
financial instrument held by Rural Northwest Health at year end as presented to key management personnel,if changes in the relevant risk occur.
Carrying
Amount
Profit Equity Profit Equity Profit Equity Profit Equity
2015 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Financial Assets
Cash and Cash Equivalents 2,373 (24) (24) 24 24 0 0 0 0
Loans and Receivables
- Other Receivables 271 0 0 0 0 (3) (3) 3 3
- Term Deposit 11,380 0 0 0 0 0 0 0 0
Financial Liabilities
At amortised cost
Payables 757 0 0 0 0 (8) (8) 8 8
Other Financial Liabilities (i)
- Accommodation Bonds 2,871 (29) (29) 29 29 0 0 0 0
(52) (52) 52 52 (10) (10) 10 10
2014
Financial Assets
Cash and Cash Equivalents 2,428 (24) (24) 24 24 0 0 0 0
Loans and Receivables
- Other Receivables 568 0 0 0 0 (5) (5) 5 5
- Term Deposit 10,050 (101) (101) 101 101 0 0 0 0
Financial Liabilities
At amortised cost
Payables 644 0 0 0 0 (6) (6) 6 6
Other Financial Liabilities (i)
- Accommodation Bonds 2,907 (29) (29) 29 29 0 0 0 0
(154) (154) 154 154 (11) (11) 11 11
(i) The carrying amount excludes types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)
-1% +1% -1% +1%
Interest Rate Risk Other Price Risk
42
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 17: FINANCIAL INSTRUMENTS (Continued)
(e) Fair Value
The fair values and net fair values of financial instrument assets and liabilities are determined as follows:
• Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid
markets are determined with reference to quoted market prices;
• Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial
asset or liability, either directly or indirectly; and
• Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted
cash flow analysis using unobservable market inputs.
The Health Service considers that the carrying amount of financial statements to be a fair approximation
of their fair values, because of the short-term nature of the financial instruments and the expectation that
they will be paid in full.
The following table shows that the fair values of most of the contractual financial assets and liabilities are
the same as the carrying amounts.
Comparison between carrying amount and fair value
Total Fair Value Total Fair Value
Carrying Carrying
Amount Amount
2015 2015 2014 2014$'000 $'000 $'000 $'000
Financial Assets
Cash and Cash Equivalents 2,373 2,373 2,428 2,428
Loans and Receivables (i)
- Other Receivables 271 271 569 569
-Term Deposits 11,380 11,380 10,050 10,050Total Financial Assets 14,024 14,024 13,047 13,047
Financial Liabilities
At amortised cost
Payables 757 757 644 644
Other Financial Liabilities (i)
-Accommodation Bonds 2,871 2,871 2,907 2,907Total Financial Liabilities 3,628 3,628 3,551 3,551
(i) The carrying amount excludes types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable).
43
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 18: COMMITMENTS FOR EXPENDITUREBuilding Redevelopment - Stage Two
The building redevelopment commenced in July 2014. The total budget for the project is $10,600,000The Federal Government is funding $8,800,000 (83%) and the balance of $1,800,000 (17%) is funded by Rural Northwest Health.Funding has been committed and approved with works underway. The anticipated completion date in January 2016
Leasing Commitments
Rural Northwest Health has changed their management of motor vehicles from wholly owed to operating leases.
This was the most viable commercial decision considering the changes in the Australian motor vehicle market over the next three years.
We currently have fourteen vehicles on thirty six month leases.
2015 2014
$'000 $'000
Lease commitments
Commitments for leases contracted for at
reporting date: 30 June 2015
Operating leases 154 265Total lease commitments 154 265
Operating leases
Payable as follows:
Cancellable
Not later than one year 111 111
Later than 1 year and not later than 5 years 43 154Sub Total 154 265
Total lease commitments (inclusive of GST) 154 265
less GST recoverable from the Australian Tax Office (14) -24Total Commitments ( exclusive of GST) 140 241
Motor Vehicles: This lease is for 14 vehicles primarily for use by employees and commenced in August 2013,
for a period of 36 months and at a monthly cost of $9,190. The Service is under no obligation to renew the lease upon expiry.
Lease and Renewal Terms Included in Lease Agreements
44
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 19: CONTINGENT ASSETS AND CONTINGENT LIABILITIES
There are no known contingent assets or liabilities for Rural Northwest Health at the date of this report.
NOTE 20: OPERATING SEGMENTS RACS ACUTE OTHER SERVICES TOTAL2015 2014 2015 2014 2015 2014 2015 2014
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
REVENUEExternal Segment Revenue 8,144 6,674 8,130 9,265 3,115 3,125 19,389 19,064
Total Revenue 8,144 6,674 8,130 9,265 3,115 3,125 19,389 19,064
External Segment Expenses (8,954) (10,696) (7,348) (6,542) (5,200) (3,666) (21,502) (20,904)
Segment Result (810) (4,022) 782 2,723 (2,085) (541) (2,113) (1,839)
Net Result from ordinary activities (810) (4,021) 782 2,723 (2,085) (541) (2,113) (1,839)
Interest Income 27 0 427 0 0 484 454 484
Net Result for Year (783) (4,021) 1,209 2,723 (2,085) (57) (1,659) (1,355)
OTHER INFORMATION
Segment Assets 35,566 32,380 12,670 11,535 8,268 7,527 56,504 51,442
Total Assets 35,566 32,380 12,670 11,535 8,268 7,527 56,504 51,442
Segment Liabilities 1,336 1,250 1,190 1,114 4,915 4,599 7,441 6,963
Total Liabilities 1,336 1,209 1,190 1,114 4,915 4,599 7,441 6,963
Depreciation expense 1,747 1,672 370 349 286 273 2,403 2,294
Acquisition of Property, Plant & Equipment 3,925 367 1,398 131 912 85 6,236 583
Non cash expenses other than depreciation 33 85 0 0 0 0 33 85
The major products/services from which the above segments derive revenue are:
Business Segments Services
Acute Warracknabeal and Hopetoun
Aged Care services
Primary Health services
Residential Aged Care Nursing Home facilities
Hostel facilities
Other Services Allied Health Services
Primary Health Services
Yarriambiack Rural Health Alliance
District & Community Nursing
Meals on Wheels
Geographical Segment
Rural Northwest Health operates predominantly in Warracknabeal, Victoria. More than 90% of revenue,
net surplus from ordinary activities and segment assets related to operations in Warracknabeal-Hopetoun-Beulah, Victoria.
45
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 21: JOINTLY CONTROLLED OPERATIONS AND ASSETS
Ownership Interest
Name of Entity Principal Activity 2015 2014
% %
Grampians Rural Health Alliance Information Systems 5.52 5.71
Rural Northwest 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 under their respective categories:
2015 2014
Current Assets $'000 $'000
Cash and Cash Equivalents 33 46
Receivables 26 35
Prepayments 4 3
Total Current Assets 62 84
Non Current Assets
Property Plant and Equipment 61 66
Total Non Current Assets 61 66Total Assets 123 150
Current Liabilities
Payables 14 35
Total Current Liabilities 14 35Total Liabilities 14 35
Net Assets 109 115
Rural Northwest Health's interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:
Revenues
Operating Revenue 193 264
Capital Income 5 15
Total Revenue 199 279
Expenses
Operating Expenditure 193 257
Depreciation 13 9
Total Expenses 206 266Net Result (7) 13
46
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 22: RESPONSIBLE PERSONS DISCLOSURES
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosuresare made regarding responsible persons for the reporting period.
Responsible Ministers:
The Honourable David Davis, MLC, Minister for Health and Minister for Ageing
The Honourable Mary Wooldridge, MP, Minister for Disability Services and Reform
The Honourable Jill Hennessy, Minister for Health, Minister for Ambulance Services
The Honourable Jenny Mikakos, MLC, Minister for Families and Children
The Honourable Martin Foley, Minister for Housing, Disability and Ageing, Minister for Mental Health
Governing Boards
Mrs Marie Aitken
Mr Leo Casey
Mr Brian Hewitt
Mrs Glenda Hewitt
Ms Patricia Kinnersly
Mrs Janette McCabe
Mrs Carolyn Morcom
Mr Matthew Richardson
Mrs Emma Vogel
Accountable Officer
Ms Catherine Morley-Nelson
Remuneration of Responsible Persons
The number of Responsible Persons are shown in their relevant income bands;
Income Band 2015 2014 2015 2014
No. No. No. No.
$0 9 9 9 9
$180,000 - $189,999 0 1 0 1
$190,000 - $199,999 1 0 1 0Total Numbers 10 10 10 10
Total Remuneration $194,572 $188,218 $194,572 $188,218
Amounts relating to Responsible Ministers are reported in the financial statements of the
Department of Premier and Cabinet
Other Transactions of Responsible Persons and their Related Parties.
No responsible person or their related parties received any remuneration or retirement benefits
during the year.
NOTE 22A: EXECUTIVE OFFICER DISCLOSURES
The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are
shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the
third and fourth columns.
Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.
The number of Responsible Persons are shown in their relevant income bands:
2015 2014 2015 2014
No. No. No. No.
$100,000 - $109,999 1 0 1 0
$110,000 - $119,999 1 0 1 0
$120,000 - $129,999 2 1 2 1
$130,000 - $139,999 1 0 1 0Total number of executives 5 1 5 1
Total annualised employee equivalent (AEE) 5 1 5 1(based on working 38 ordinary hours per week over the reporting period)
Total Remuneration $616,535 $125,183 $616,535 $125,183
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
Base Remuneration
Period
Total Remuneration Base Remuneration
01/07/2014 - 30/06/2015
01/07/2014 - 03/12/2014
01/07/2014 - 03/12/2014
04/12/2014 - 30/06/2015
04/12/2014 - 30/06/2015
04/12/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
Total Remuneration
47
Rural Northwest HealthNotes to the Financial Statements
30 June 2015
NOTE 23: REMUNERATION OF AUDITORS
2015 2014
$'000 $'000
Victorian Auditor-General's Office
Audit or review of financial statement 22 1922 19
NOTE 24: EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
There have been no events subsequent to the reporting date which require further disclosure.
48
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