annual report · it is the role of the board of management to utilise information available on our...

2010-2011

Casterton Memorial Hospital

“A Fully Accredited Healthcare Facility.”

Annual Report 2010/2011

103rd

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2010-2011

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Adopted 17/03/2011

3

2010-2011

Contents

Strategic Plan Inside front cover

Our Model of Care Page 1

Governing Board, Responsible Officers & Senior Staff Page 2

Services to our Community

President & Executive Report Page 4

Our Supportive Community Page 5

Finance & Activity Overview Page 6 & 7

Statutory Compliance Page 7, 8 & 9

Financials Pages 10 > 55

Disclosure Index Page 56

Organisational Chart Inside back cover

Our Model of Care

Casterton Memorial Hospital is classified as a Small Rural Health Service (SRHS) under the Department of Health Policy and Guidelines. This classification allows Casterton Memorial Hospital, a Small Rural Health Service, to direct service delivery within our budget which will best meet the needs of our community. This service and planning decentralisation of the Hospital is important for flexibility from year to year or as circumstances may alter, but also allows at the local level to identify and target community needs. It is the role of the Board of Management to utilise information available on our local area to maximise the health gains for our community.

Casterton Memorial Hospital fulfils its mission through provision of acute, residential high care and community health/primary care services from its modern facility, as well as services into the home.

4

2010-2011

*Resigned during the year

Responsible Ministers:

Commonwealth Government Australia:

The Hon Nicola Roxon MP, Minister for Health & Ageing

State Government Victoria

The Hon Daniel Andrews MLA, Minister for Health

The Hon David Davis, MP, Minister for Health and Ageing

Hospital Board of Management

President

Mr. G. Sheppard Vice President

Mr. E. Edge

Members

Mr. T. Baker

Mrs. C. Brown

Mr. R. Dalby

Dr. T. Halloran

*Mr. D. Huett

Fr. A. Hayes

Audit Committee Mr. O. Stephens - CEO

Mr. G. Sheppard - Chairman

Mrs. B. Toma – Finance Officer

Mr. E. Edge - BOM

Mrs. C. Brown - BOM

Mr. R. Dalby - BOM

Visiting Medical Staff Dr. B. S. Coulson: M.B.B.S., D.R.O.G., F.A.C.R.R.M.

Dr. M. Prozesky: M.B., ChB, (South Africa)

Dr. K. E. Tan: M.B., B.S., FRACGP, DFM

*Dr. C. A. Wilson: M.B.B.S (Monash)

Dr. R. Taheri: M.B. (Mashad Uni Iran) G.P. Registrar

Dr. N. Osman: M.D. (uni Gezira-Sudan) G.P. Registrar

*Dr. C. Pye: M.B., B.S. (Adel), F.R.A.C.E.P., F.A.C.R.R.M, Dip R.A.C.O.G.

*Dr. T. D. Nguyen: M.D. (Hue Uni Vietnam) G.P. Registrar

Dr. T. N. Halloran: B.D., B.Sc. (Hons)

Mr. P. H. Tung: M.B., B.S., F.R.A.C.S.

Prof. D. Healy: B.Med.Sci.,M.B.B.S. (Hons), Ph.D., F.R.A.N.Z.C.O.G., C.R.E.I.

Dr. J. Cloete: M.B., BCH, M.R.C.O.G., F.C.O.G.

Dr. G. Coggins: M.B., B.S., F.R.A.C.P.

Dr C. de Kievit: M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.

Dr. K. Fielke: M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.

Dr. P. Goodman: M.B., B.S., D.A., D.Obst., R.C.O.G., F.R.A.C.G.P.

Dr. J. D. Muir: M.B., ChB, D.A., F.R.C.A.

Dr. T. J. Hodson: M.B., M.B.S., F.R.A.N.Z.C.O.

Dr. S. Perry: G.P. Anaesthesia F.R.A.C.G.P., B.M.B.S. (Flinders), B.S.C., D.C.H.

Deakin Medical School

Dr. Chris Kearney

Royal Adelaide Interns

Dr. Madeline Trott

Dr. Bianca Djurdjevic

Emeritus

Dr.A. F. Floyd: M.B., B.S., D.Obst, R.C.O.G.

Principal Officers Chief Executive Officer

Mr. O. P. Stephens: B.Bus., A.C.H.S.E.

Manager Nursing Services

Ms. M. Betson: R.N., R.M., C.C.N., MNsg.,FRCNA

Nurse Unit Manager Acute Ward/AHS/Education Officer

Mrs. J. Coulter: R.N., Cert IV Training & Assessment

Night Nurse in Charge & Quality Improvement Officer

Mrs. H. Dillon: R.N.,R.M.Grad Cert Ad Nsg Practice (Rural Remote)

Nurse Unit Manager Acute Ward/AHS

Mr. S. Gill: R.N. Cert Aged Care

Nurse Unit Manager OR/Emergency/Infection Control Officer

Mrs. H. Gill: R.N.Cert Infection Control & Sterilisation MRCNA

Nurse Unit Manager Residential Care

Mrs. K. Sealey: R.N

Nurse Unit Manager Community Health

Ms. S. Bramall: R.N., Grd Dip CH

Nurse Unit Manager District Nursing Service

Mrs. S. Nolte: R.N

Planned Activity Group Co-ordinator

Mrs. J. Annett: R.N. Division 2, Diversional Therapy

After Hours Supervisors

Mrs. S. Dehnert: R.N., R.M., IBCLC

Mrs. A. Jenkins

Mrs. V. Markham

Administrative & Finance Officer

Mrs. B. Toma

Health Information / Quality Improvement

Mrs. H. Rees

Catering Services Supervisor

*Mr. S. Hutchins

Mr. M. Nolte

Environmental Services Supervisor

Mrs. L. Carter

Maintenance Coordinator / Safety

Mr. R. Tomkins

Meals on Wheels Coordinator

Mrs. V. Ross

Life Governors

Bunnik, Mr Adrian Burston, Sir S.G.W.

Collins, Mr Des Cowland, Mr Ross

Flanders, Mrs J. Kerr, L. M.

Martin, Jean McEachern, Mrs N. J.

McKinnon, Mrs C. Ross, Mrs Janet (OAM)

Floyd, Dr. A.F. Sandow, Mr. P.J.

Simson, C.R. & K.L. Squire, D

Thompson, Mrs. R. G. Mrs Marg Moffatt

Mr Robert (Bob) Nicol

Recognised for Service and Dedication to Casterton Memorial Hospital

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2010-2011

Casterton Memorial Hospital - Small Rural Health Service (SRHS)

Demographics of Our Service Area

Casterton Memorial Hospital is situated in the northern sector of the Glenelg Shire within the township of Casterton nestled amongst rolling hills and river red gums of the Glenelg River valley. It is located on the Glenelg Highway, 359 kms west of Melbourne and 42 kms east of the South Australian border. The Shire has a total population base of 20,200 and Casterton rural north has a catchment population of 4,500. Our catchment area includes the townships of Digby, Merino and Sandford and the surrounding rural localities. Casterton Memorial Hospital provides services to all within its population base as well as neighbouring shires. Our satellite Monash IVF clinics encompass the south east of South Australia, Wimmera and the Western District of Victoria. A dialysis service and a range of other visiting specialist’s services is provided from our facility as well as ensuring effective triaging and access of best care in best possible time for our patients and clients.

Services to our Community

Hospital 2010/11 2009/10

Total Multi-stay Inpatient Separations* 353 364

Total Same Day Inpatient Separations* 137 371

Bed Days* 3324 2,928 Other services facilitated from

Total WIES 441.02 458.99 Casterton Memorial Hospital

% Occupancy Rate Staffed Beds 61% 54% through private practitioners

Average Length of Stay** 4.7 3.56 include:

% Public Bed Days 71% 76% · Audiology

% Private Bed Days 29% 24% · Child Maternal Health

Obstetrics / Gynaecology 11 11 · Visiting Medical Specialists

Operations / Procedures 123 159 · Radiology Services

Emergency Department Presentations 1,395 1,613 · Ophthalmology Services

Glenelg House Residential Care · Podiatry Services

Residents Accommodated 40 50 · Psychology Services

Bed Days 10,946 10,902 · Drug & Alcohol

Average Daily Occupancy 29.98 29.98

% Occupancy Rate Full Year 99.96% 99.59%

Planned Activity Group

Attendances 1,351 1,270

District Nursing

Home Visits 4,213 4,576

Kilometres Travelled 23,669 24,339

Community Health

Attendance (contacts) 1,688 1,556

Allied Health

Physiotherapy Attendance 2,321 1939 * Does not include newborn transfers

Speech Therapy Attendance 26 5 ** Excludes Nursing Home Type Patients

Dietetics Attendance 95 107

Occupational Therapist Attendance 13 38

Meals Produced Hospital / Residential Care / Other 73,868 71,757

Meals on Wheels (HACC Assessed) 5,937 8,833

Antenatal Sessions 0 3

6

2010-2011

President and Executive Report

Ladies & Gentlemen it is with great pleasure that we present to you the 103rd Annual Report of the Casterton Memorial Hospital for year 2010/2011.

Casterton Memorial Hospital has achieved another extremely productive year in achieving service targets, and in many cases exceeding those targets. Services have been maintained across all our service areas of aged care, acute care, primary care and community health services.

We have been able to produce a strong operating surplus of $226,642 which was achieved through maximisation of income from Commonwealth aged care subsidies, increased private patient income and tight management of expenditure across all programs for the year.

We have not just functioned successfully on an annual operating basis, but have been able to successfully complete our major $700,000 kitchen and laundry services zone redevelopment. This program finally completes the major building up-grade strategy for our facility which commenced with our major $7.3M redevelopment program in the year 2000.

Our asset base is strong, capital stock secure and service programs supported by our Model of Care have been and are delivering high levels of health and community support for our community.

This year we have set a new three year strategic plan, also reviewed and up-dated our Model of Care. We have entered a new collaborative era with our medical colleagues with increased training support and management for medical students, registrars and interns. We have also continued our strong support and action in relation to clinical student nurse placements. Casterton Memorial Hospital has collaboration with over 12 universities across Australia in support of medical and clinical education. This has been a great effort for Casterton Memorial Hospital, your Small Rural Health Service (SRHS).

Your Board of Management together with the executive and staff have also kept a close eye on National Health reform developments and believe that our existing structures and partnerships already reflect what the rest of the Australian States are being asked to aspire too.

We have monitored and reviewed our community for input to health services development which has assisted greatly in establishing our next three year plan for development. We trust that we can continue to rely on our community for input and directions to ensure we get the service right for our local area in line with State and Federal Government policy directives.

On behalf of the Board and community I thank all our dedicated staff, Medical Officers, Ambulance service paramedics, partner organisations and of course our great band of volunteers across all service providers of Casterton Memorial Hospital. Your work and dedication is acknowledged as the reason Casterton Memorial Hospital is successful.

Finally, in accordance with the Financial Management Act 1994, we are pleased to present the Report of Operations for the Casterton Memorial Hospital for the year ending 30 June, 2011.

Mr G. Sheppard

President

23rd August, 2011.

Mr Owen Stephens

Chief Executive Officer

23rd August, 2011.

7

2010-2011

Our Supportive Community Casterton Memorial Hospital’s 150 plus volunteers are greatly appreciated by both staff and patients. They contribute to numerous activities across the facility, including delivery of Meals on Wheels, bus driving, visiting, music, entertainment, and assistance with diversional and lifestyle activities. Volunteer services and friendship provided to our residents and clients greatly help foster community connection, participation and involvement. The financial support from our fund raising committees and the community in general is very much appreciated and assists Casterton Memorial Hospital to maintain medical equipment, and in particular this year with the major redevelopment of our catering and laundry services areas. To our fundraising groups, clubs, the business community and the many individuals who raise funds to donate to Casterton Memorial Hospital each year, your support and sense of community is what makes Casterton Memorial Hospital the organisation it is today. The Board sincerely thanks all Casterton Memorial Hospital supporters for their generous and tireless support over many years.

Donations received during the 2010-2011 year:

Fundraising Committees Anonymous 5200.05

CMH Hospital Social Club 1000.00 Cook, Stewart 200.00

CMH Ladies Auxiliary 3812.74 Delahunty, Hugh 150.00

CMH Murray to Moyne 8330.00 Gorman, Peter 57.00

CMH Staff Fundraising 700.00 Geary, Mick 20.00

CMH Hospital Card Program 6550.00 Hill, June 135.00

Give Me 5 for Kids Program Johnson, Jim 100.00

5SE 579.00 Lamond, John 20.00

Albion Hotel 100.00 MacDonald, Evelyn 100.00

Spill the Beans 100.00 Mace, Terry 600.00

Coxon’s of Casterton 100.00 Murrell, Phillip & Southern, Warren 700.00

Korner Cuts 100.00 Parish of Glenelg - Wannon 500.00

Gorman’s Real Estate 100.00 Robbins, Troy & Prue (Glenelg Inn) 122.10

Lions Club 757.50 Tait, Peter & Jo 50.00

Community Groups & Organisations Withers, Nancy 10.00

Casterton Field & Game 500.00 Estates

Hamilton Bridge Club 100.00 Estate of Louisa Henty 679.33

Palliative Care Australia 2370.00 Estate of John McPherson 1550.00

Community Member Support

In Memory of Shirley Harvey 50.00

In Memory of William Killey 53.00

In Memory of Edith Luers 70.00

In Memory of Leslie Clode 150.00

In Memory of Leslie Kerr 500.00

Total Donations $ 33,845.72

8

2010-2011

Finance & Activity Overview: The financial statements of account for the year ended 30 June, 2011 have been completed in accordance with the Australian Audit and Accounting Standards and the Financial Management Act 1994.

We have completed the year with a net surplus result, before capital and specific items, of $226,642. This is a significant increase from the 30 June 2010 surplus result of $41,009. Improved management practices of Commonwealth subsidy entitlements, increased private patient revenue and close monitoring and contract management of operating costs have all contributed to this excellent result.

Entity Comprehensive Result for the current year is a deficit position of ($367,405), an improvement on the prior year deficit result of ($455,828). The Entity deficits are a direct result of the unfunded asset depreciation costs of $930,204 current year and $921,369 prior year.

Casterton Memorial Hospital liquidity position remains stable with a current asset ratio of 1.2, a slight decline compared to our 2009/10 ratio of 1.41. However a cash outlay during 2010/11 on major fixed asset upgrade of $739,589 and with current assets remaining in excess of current liabilities by $375,677 confirms a stable position as at 30 June 2011.

Casterton Memorial Hospital’s current year expense and revenue includes a 3.68% interest in the joint venture of South West Alliance for Rural Health (SWARH) and a 13% interest in Southern Grampians/Glenelg Primary Care Partnership (PCP). Prior year recognition of these investments was an individual line item of the net operating result. SWARH/PCP salary costs included in the 2010-2011 summary $203,836, other operating costs $533,839 and operating revenue $717,600. SWARH/PCP operating revenue and expense totals have not been included in the following Casterton Memorial Hospital’s comparatives.

Entity operating expenditure, not including depreciation expense, for current year totalled $6.933M, an increase of 4.89% on the prior year. Salary, employee benefits and other labour costs accounted for $5.602M or 81% of the total operating expenses and a 4.17% increase on prior year employee & labour costs. Other non salary related costs of $1.331M is an increase on prior year of 8.04% and is impacted by one off expenditure on air conditioning maintenance, increased patient transport services expenditure and Department of Health insurance costs.

Total revenues for the current year totalled $7.080M, a 7.13% increase from 2009/10 revenue of $6.609M. Capital Purpose income for current year $336,157, a $50,858 reduction on Prior Year’s $387,015. Prior Year included $100,000 Department grant with current year reporting Department grants totalling $47,085. Current year increased acute private patient activity generated an additional $79,598 in fees raised. Residential aged care fees increased by $84,461 or 21.04% from prior year. Government cash grants, including commonwealth aged care subsidies, for current year totalled $5.890M a 5.93% or $330,121 increase on prior year. .

The Hospital met set targets in public and exceeded set targets in private, DVA and nursing home type inpatients treated. Dialysis and TAC inpatients treated were slightly under set targets. The net result achieved additional revenue earned of $48,480. Our 30 bed high care residential activity remained consistent with a full year occupancy rate of 99.96%. Our extensive primary care, aged and community based services have benefited from additional program funding and resources, resulting in a wider range of services provided and extensions to existing well supported and successful activities.

Overall the 2010/11 financial year for Casterton Memorial Hospital has been very pleasing. We have managed our expenditure well while at the same time increasing our revenue opportunities, improving capital infrastructure, extending clinical training programs, staff resources and maintaining a consistent and balanced range of services to our community.

Average Collection Days

2010/11 2009/10

Patient/Resident/Client Revenue Turnover

- Private, Compensable, Nursing Home Type 28.54 60.00

- Residential Care 47.49 49.04

- Non Admitted Patient Fees 24.63 28.24

Trade Creditor Turnover 30 30

Efficiency Indicators

9

2010-2011

Statutory Compliance The Casterton Memorial Hospital conducts its activities with compliance to many Government Acts, Regulations and Standards. It is a legislative requirement that we provide, where applicable, specific information in support of our compliance.

The Casterton Memorial Hospital is a public health facility established under the Health Services Act 1988. The responsible Ministers during the reporting period are the Hon Daniel Andrews, MLA Minister for Health and the Hon David Davis, MP, Minister for Health and Aging.

Consultancies During the 2010/11 financial year the Casterton Memorial Hospital engaged the use of one consultant totalling $18,700.

Building Act 1993 Casterton Memorial Hospital complies with the building and maintenance provisions of the Building Act 1993 in accordance with the Minister for Finance Guidelines Building Act 1993/Standards for Publicly Owned Buildings/November, 1994.

Freedom of Information The Victorian Freedom of Information Act 1982 provides the right for members of the public to obtain information held by the Casterton Memorial Hospital and consumers are entitled to access their medical record through the Freedom of Information process. Four (4) Freedom of Information requests were processed this Financial Year. Applications are to be directed to the nominated Officer, Mr Owen Stephens. A fee and charges for associated costs may apply in accordance with the Act.

5 Year Comparative Report

Five Year Financial Comparative Statement 2006/07 2007/08 2008/09 2009/10 2010/11

Total Revenue 6,037,651 6,301,040 6,866,384 7,067,052 8,233,277

Total Expenditure 5,863,654 6,232,317 6,665,520 7,560,397 8,600,682

Net result for the year 173,997 68,723 200,864 (-493,345) (-367,405)

Restricted Specific Purpose Funds Transfer - - - - 479

Capital Contribution from State Government - 74,386 - - -

Share of Comprehensive Income Joint Ven-ture - - - 37,717 -

Retained Surplus/Accumulated Deficit 7,445,248 7,588,357 7,789,221 7,333,593 6,966,667

Total Assets 10,946,557 11,197,560 18,212,964 17,853,140 17,710,333

Total Liabilities 1,771,293 1,862,537 1,688,069 1,783,873 2,008,471

Net Assets 9,175,264 9,335,023 16,524,895 16,069,267 15,701,862

Total Equity 9,175,264 9,335,023 16,524,895 16,069,267 15,701,862

Fees All fees charged by the Hospital for Acute and Community services are in accordance with the directives of the Department of Health, and Aged Care fees as directed by the Commonwealth Department of Health and Ageing.

Patient Debtors Outstanding as at 30 June 2011

Under 30

days 31-60 days 61-90 days over 90 days Total 10/11 Total 09/10

Private Inpatients 5,807 1,151 - 2087 9,045 18,320

Non In patients (HACC/ DVA) 2,916 - 23 168 3,107 5,237

Residential Care 55,040 11,457 - 3,106 69,603 56,810

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2010-2011

Additional Information In compliance with the requirements of the Standing Directions of the Minister for Finance, details in respect of the items listed below have been retained by Casterton Memorial Hospital and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

Statement of pecuniary interest has been completed.

Details of publications produced by the department about the activities of the entity and where they can be obtained.

Details in changes in prices, fees, charges, rates and levies charged by the entity.

Details of major promotional, public relations and marketing activities undertaken by the entity to develop community awareness of the entity and its services.

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

General statement on industrial relations within the entity and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations.

A list of major committees sponsored by the entity, the purposes of each committee, and the extent to which the purposes have been achieved.

Whistleblowers Protection Act 2001 The Casterton Memorial Hospital has policies and procedures in place to enable total compliance with the Act, and provides a safe environment in which disclosures can be made, people are protected from reprisal and the investigation process is clear and provides a fair outcome. The privacy of all individuals involved in a disclosure is assured of protection at all times. Casterton Memorial Hospital is committed to the principals of the Act and at no time will improper conduct by the Casterton Memorial Hospital or any of its employees be condoned.

Disclosures Since the introduction of the Act in 2002 there have been no disclosures received and no notification of disclo-sures to the Ombudsman or any other external agency.

National Competition Policy Casterton Memorial Hospital has implemented competitive neutral pricing principles to all contracts for services provided, to ensure a level playing field is maintained in accordance with National Competition Policy including the requirements of the Government policy statement, Competitive Neutrality Policy, Victoria; and subsequent reforms.

Contract Disclosures There were no contracts commenced or completed during this reporting period, with the exception of one school based traineeship in Aged Care completed November 2010, under the Victorian Industry Participation Policy (VIPP) Act 2003.

Statutory Compliance

Equal Employment Opportunity - Merit & Equity

The Board of Management at Casterton Memorial Hospital has a firm commitment to ensure equity principles in the workforce are maintained. Human Resource policies and practices give due consideration to public authori-ties ‘Code of Conduct’ and the Equal Employment Opportunity (EEO) Act, 1995.

Occupational Health & Safety (OHS)

OHS continues to play a major role at CMH. The OHS committee which comprises of representatives from the different service areas and management meet regularly to discuss and address any concerns and issues that may arise. Staff are continually encouraged to act and work in a safe manner and to report any incidents or near miss-es. Through the operation of the OHS committee, staff education and incident reporting through VHIMS, CMH is continuing to ensure the safety of staff, patients and visitors.

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2010-2011

Data Accuracy I, Owen Stephens certify that the Casterton Memorial Hospital has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. The Casterton Memorial Hospital has critically reviewed these controls and processes during the year.

Owen P Stephens Chief Executive Officer Casterton 23rd August 2011

Compliance with Australian/New Zealand Risk Management Standard I, Owen Stephens certify that the Casterton Memorial Hospital has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executives to understand, manage and satisfactorily control risk exposures. The Audit Committee verifies this assurance and that the risk profile of the Casterton Memorial Hospital has been critically reviewed within the last 12 months.

Owen P Stephens Chief Executive Officer Casterton 23rd August 2011

Workforce Data During the 2010/11 year Casterton Memorial Hospital employed 111 staff (full time, part time and casual) across the following labour categories. Statistics provided are consistent with information provided in the entity’s MDS/F1 datasets which are reported on a monthly basis to the Department of Health.

Statutory Compliance

Category

2010 2011 2010 2011 2010 2011

Nursing 56 53 37.03 39.89 37.64 38.3

Administration & Clerical 9 10 8.85 7.93 8.74 8.82

Hotel & Allied Services 43 47 25.27 26.21 26.88 27.16

Ancillary Staff (Allied health) 1 1 0.59 0.5 0.59 0.47

Labour Category - FTE

Staffing June Current Month June Year to Date

Workforce Data

* FTE – Full time equivalent

12


Financial Report

2010 - 2011

16

Note Total Total

2011 2010

$ $

Current Assets

Cash and Cash Equivalents 5 1,742,387 2,052,655

Receivables 6 429,722 183,545

Inventories 7 66,541 52,482

Total Current Assets 2,238,650 2,288,682

Non-Current Assets

Receivables 6 191,647 141,590

Investments Accounted for using the Equity Method 8 - 94,997

Property, Plant & Equipment 9 15,280,036 15,327,871

Total Non-Current Assets 15,471,683 15,564,458

TOTAL ASSETS 17,710,333 17,853,140

Current Liabilities

Payables 10 348,630 198,025

Provisions 11 1,451,393 1,304,520

Other Liabilities 12 62,950 122,680

Total Current Liabilities 1,862,973 1,625,225

Non-Current Liabilities

Provisions 11 145,498 158,648

Total Non-Current Liabilities 145,498 158,648

TOTAL LIABILITIES 2,008,471 1,783,873

NET ASSETS 15,701,862 16,069,267

EQUITY

Property, Plant & Equipment Revaluation Surplus 13a 8,735,195 8,735,195

Restricted Specific Purpose Surplus 13a - 479

Investment in Joint Venture Revaluation Surplus 13a - 37,717

Contributed Capital 13b 2,293,608 2,293,608

Accumulated Surpluses 13c 4,673,059 5,002,268

TOTAL EQUITY 13d 15,701,862 16,069,267

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

Balance SheetAs at 30 June 2011


17

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-

-

37,7

17

Ba

lan

ce

at

30

Ju

ne

20

10

8,7

35

,19

5

37

,71

7

47

9

2,2

93

,60

8

5,0

02

,26

8

16

,06

9,2

67

Net

result f

or

the y

ear

-

-

-

-

(367,4

05)

(367,4

05)

Tra

nsfe

r to

accum

ula

ted s

urp

lus

13a,c

-

(37,7

17)

(479)

-

38,1

96

-

Ba

lan

ce

at

30

Ju

ne

20

11

8,7

35

,19

5

-

-

2,2

93

,60

8

4,6

73

,05

9

15

,70

1,8

62

This

Sta

tem

ent

should

be r

ead in c

onju

nction w

ith a

ccom

panyin

g n

ote

s.

18

Note Total Total

2011 2010

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 4,508,427 4,220,517

Patient and Resident Fees Received 2,537,633 2,259,615

Donations and Bequests Received 36,216 65,272

GST Received from/(paid to) ATO (40,095) (5,734)

Interest Received 99,358 71,269

Other Receipts 928,379 320,192

Employee Expenses Paid (5,380,851) (4,947,142)

Non Salary Labour Costs (126,465) (60,025)

Payments for Supplies & Consumables (645,285) (624,700)

Fee for Service Medical Officers (199,241) (195,029)

Other Payments (1,131,516) (714,258)

Cash Generated from Operations 586,560 389,977

Capital Grants from Government 47,085 101,751

NET CASH INFLOW/(OUTFLOW) FROM

OPERATING ACTIVITIES14

633,645 491,728

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Non-Financial Assets (886,456) (265,883)

Proceeds from sale of Non-Financial Assets 2,273 30,455

NET CASH INFLOW/(OUTFLOW) FROM

INVESTING ACTIVITIES (884,183) (235,428)

NET INCREASE/(DECREASE) IN CASH HELD (250,538) 256,300

CASH AND CASH EQUIVALENTS AT BEGINNING

OF PERIOD 1,929,975 1,673,675

CASH AND CASH EQUIVALENTS AT END OF

PERIOD 5 1,679,437 1,929,975

This Statement should be read in conjunction with the accompanying notes

Cash Flow Statement For the Year Ended 30 June 2011


19

Index

Note Page

1 Statement of Significant Accounting Policies 18 > 32

2 Revenue 33

2a Analysis of Revenue by Source 34

2b Patient and Resident Fees 35

2c Net Gain/Loss pm Disposal of Non-Financial Assets 35

3 Expenses 36

3a Analysis of Expenses by Source 37

4 Depreciation and Amortisation 38

5 Cash & Cash Equivalents 38

6 Receivables 39

7 Inventories 39

8 Investments Accounted for Using the Equity Method 40

9 Property, Plant & Equipment 41 & 42

10 Payables 42

11 Provisions -Employee Benefits and Related On-Costs 43

12 Other Liabilities 44

13 Reserves 44

14 Reconciliation of Net Result for the Year to Net Cash Inflow/

(Outflow) from Operations Activities 45

15 Financial Instruments 45 > 51

16 Commitments for Expenditure 52

17 Contingent Assets or Contingent Liabilities 52

18 Segment Reporting 53

19 Jointly Controlled Operations & Assets 54

20a Responsible Persons Disclosures 55

20b Executive Officer Disclosures 55

21 Events Occurring after the Balance Sheet Date 55


Notes to the Financial Statements 30 June 2011

20

Note 1: Statement of Significant Accounting

Policies

(a) Statement of Compliance

These financial statements are a general purpose financial report which has been prepared in accordance with the Financial Management Act 1994, applicable Australian Accounting Standards (AASs), and Australian Accounting Interpretations and other mandatory requirements. AASs include Australian equivalents to International Financial Reporting Standards.

The financial statements also complies 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.

The Health Service 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 Casterton Memorial Hospital on 10/08/2011.

(b) Basis of accounting preparation and measurement

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2011, and the comparative information presented in these financial statements for the year ended 30 June 2010.

The going concern basis was used to prepare the financial statements.

These financial statements are presented in Australian dollars, the functional and presentation currency of the Health Service.

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

The Financial Statements are prepared in accordance with the historical cost convention, except for the revaluation of certain non-financial assets and financial instruments, as noted. Particularly, exceptions to the historical cost convention include:

Non-current physical assets, which subsequent to acquisition, are measured at valuation 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 is generally based on their depreciated replacement value.

Historical cost is based on fair values of the consideration given in exchange for assets.



21

In the application of AAS’s management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised 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 made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, are disclosed throughout the notes to the financial statements.

(c) Reporting Entity

The financial statements include all the controlled activities of the Health Service.

Its principle address is:

63-69 Russell Street,

Casterton 3311

A description of the nature of Casterton Memorial Hospital’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements.

(d) Principles of Consolidation

Intersegment Transactions

Transactions between segments within the Health Service have been eliminated to reflect the extent of the Health Service's operations as a group.

Joint Ventures

Investments in a joint venture partnership are accounted for using the equity method of accounting. Under the equity method of accounting, Casterton Memorial Hospital’s share of the post acquisition profits or losses of the joint venture partnership is recognised in the net result and its 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.

Details of joint venture are set out in Note 8.

Jointly Controlled Assets

Interest in jointly controlled assets are accounted for by recognising in Casterton Memorial Hospital’s financial statements its proportionate share of the assets, liabilities and any income and expense of such assets.

Details of jointly controlled assets are set out in Note 19.

(e) Scope & presentation of financial statements

Fund Accounting

The Health Service operates on a fund accounting basis and maintains three funds:

Operating, Specific Purpose and Capital Funds. The Health Service's Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds.



22

Services Supported By Health Services Agreement and Services Supported By Hospital and Community Initiatives

Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and includes Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents; while Services Supported by Hospital and Community Initiatives (H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth.

Residential Aged Care Service

The following Residential Aged Care Services operations are an integral part of the Health Service and share its resources.

- Casterton Memorial Hospital Glenelg House – Residential High Nursing Care

The Residential Aged Care Service is substantially funded by Commonwealth bed day subsidies. Where services are co-located with other health service operations an apportionment of land and buildings has been made based on floor space. The results of all operations have been segregated based on actual revenue earned and expenditure incurred by each operation.

Comprehensive operating statement

The Comprehensive operating statement includes the subtotal entitled “Net Result before Capital & Specific Items” to enhance the understanding of the financial performance of the Health Service. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, and items of unusual nature and amount such as specific revenues and expenses. The exclusion of these items are made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The “Net Result before Capital & Specific Items” is used by the management of the Health Service, the Department of Health and the Victorian Government to measure the ongoing result of Health Services in operating hospital services.

Capital and specific items, which are excluded from this sub-total, comprise:

• Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets. It also includes donations of plant and equipment (refer Note 1 (g)). Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.

• Specific income/expense, comprises the following items, where material:

- Non-current asset revaluation increments/decrements

- Diminution in investments

• Impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), related to non-current assets only which have been recognised in accordance with Note 1 (i)

• Depreciation as described in Note 1 (h)

• Assets provided free of charge, as described in Note 1 (g) and (h)

• Expenditure using capital purpose income, which comprises expenditure which either falls below the asset capitalization threshold (Note 1 (h)) or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that expenditure is from capital purpose income.



23

Balance Sheet

Assets and liabilities are categorised either as current or non-current.

Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income related to other non-owner changes in equity.

Cash Flow Statement

Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.

Comparative Information

Where necessary the previous year’s figures have been reclassified to facilitate comparisons.

(f) Changes in Accounting Policies

Disclosure 1

Casterton Memorial Hospital has a 3.68% interest in the joint venture of South West Alliance for Rural Health (SWARH) as at 30th June 2010 amounting to $48,942. This investment in the joint venture was previously treated as an investment in a jointly controlled entity. From 1 July 2010, this investment has been accounted for as an interest in a jointly controlled asset. The change in accounting policy is a result of a review of the accounting treatment under the joint venture agreement.

As at 30 June 2011 this investment is disclosed as a Jointly Controlled Asset, split into the relative class of revenue, expenditure, assets and liabilities per the health Service’s share of SWARH result and position.

For the year ended 30 June 2010, the impact of this change is nil.

Previous disclosure 2009/10 Published Financial Statements;

Recognition of health services share of operating result of SWARH ($31,520 deficit), as an individual line item in the Comprehensive Operating Statement; and

Investment accounted for using the equity method as a non current asset in the balance sheet for $48,942.

Under new Accounting Policy this investment would have been disclosed in 2009/10 as follows;

Revenue class items amounting to $203,059, expenditure class items amounting to $(234,579) Net result $(31,520); and

Current assets items amounting to $448,097, non-current asset items amounting to $7,334 and current liability items amounting to $(401,944) and noncurrent liabilities items amounting to $(4,545). Resulting in a net asset position for the investment in SWARH jointly controlled assets of $48,942

Disclosure 2

Casterton Memorial Hospital has a 13% interest in the joint venture of Southern Grampians / Glenelg Shire PCP as at 30th June 2010 amounting to $46,055. This investment in the joint venture was previously treated as an investment in a jointly controlled entity. From 1 July 2010, this investment has been accounted for as an interest in a jointly controlled asset. The change in accounting policy is a result of a review of the accounting treatment under the joint venture agreement.

As at 30 June 2011 this investment is disclosed as a Jointly Controlled Asset, split into the relative class of revenue, expenditure, assets and liabilities per the Health Service’s share of Southern Grampians / Glenelg Shire PCP result and position.



24

For the year ended 30 June 2010, the impact of this change is nil.

Previous disclosure 2009/10 Published Financial Statements;

Recognition of health services share of operating result of PCP $2069 surplus, as an individual line item in the Comprehensive Operating Statement; and

Investment accounted for using the equity method as a non current asset in the balance sheet for $46,055.

Under new Accounting Policy this investment would have been disclosed in 2009/10 as follows;

Revenue class items amounting to $75,746, expenditure class items amounting to $(73,677).

Net result $2,069; and

Current assets items amounting to $68,594 and current liability items amounting to $(22,539). Resulting in a net asset position for the investment in Southern Grampians / Glenelg Shire PCP controlled assets of $46,055

Refer to Note 8 Investment accounted for using the equity method for disclosure relating to 2009/10 and to Note 19 Interest in Jointly Controlled Asset for the disclosure of this investment in 2010/11.

(g) Income Recognition

Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Casterton Memorial Hospital and the income can be reliably measured. Unearned income at reporting date is reported as income received in advance.

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

Government Grants and other transfers of income (other than contributions by owners)

Grants are recognised as income when the Health Service gains control of the underlying assets in accordance with AASB 1004 Contributions. For reciprocal grants the Health Service is deemed to have assumed control when the performance has occurred under the grant. For non-reciprocal grants the Health Service is deemed to have assumed control when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Indirect Contributions from the Department of Health

Insurance is recognised as revenue following advice from the Department of Health.

Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in

line with the arrangements set out in the Metropolitan Health and Aged Care Services Division

Hospital Circular 14/2009.

Patient and Resident Fees

Patient fees are recognised as revenue at the time the invoices are raised.

Private Practice Fees

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

Donations and Other Bequests

Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a reserve, such as specific restricted purpose reserve.

Interest Revenue

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset.

Sale of Investments

The profit/loss on the sale of investments is recognised when the investment is realised



25

(h) Expense Recognition

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

Cost of Goods Sold

Costs of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item/s from inventories.

Employee Expenses

Employee expenses include:

Wages and salaries;

Annual leave;

Sick leave;

Long service leave; and

Superannuation expenses which are reported differently depending upon whether employees are members of defined benefit or defined contribution plans.

Defined contribution plans

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

Defined benefit plans

The amount charged to the Comprehensive Operating Statement in respect of defined benefit superannuation plans represents the contributions made by the Health Service to the superannuation plans in respect to the current services of current Health Service staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

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

The name and details of the major employee superannuation funds and contributions made by the Health

Service are as follows:

Fund

2011 2010

Defined Benefit plans:

Health Super 32,643 31,675

Defined Contribution plans

Health Super 379,095 367,592

HESTA 35,270 25,101

TOTAL 447,008 424,368

Contributions Paid or Payable for the Year



26

Depreciation

Assets with a cost in excess of $1,000 (2009-10 and 2010-11) are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives. 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. This depreciation charge is not funded by the Department of Health.

Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land and investment properties. Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.

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

2011 2010

Buildings 30 to 60 Years 30 to 60 Years

Plant & Equipment 8 to 10 Years 8 to 10 Years

Medical Equipment 7 to 9 Years 7 to 9 Years

Computers and Communication 3 to 5 Years 3 to 5 years

Furniture and Fittings 3 to 5 Years 3 to 5 Years

Motor Vehicles 3 to 5 Years 3 to 5 Years

As part of the Building valuation, building values were componentised and each component assessed for its useful life which is represented above.

(i) Financial Assets

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and cash at bank and deposits at call which are held for the purpose of meeting short term cash commitments rather than for investment purposes which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Receivables

Receivables consist of;

Statutory receivables, which includes predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and

Contractual receivables, which includes of mainly debtors in relation to goods and services, loans to third parties, accrued investment income and finance lease receivables.

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 where there is objective evidence that impairment loss has occurred. Bad debts are written off when identified.

Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any accumulated impairment.



27

Impairment of Financial Assets

At the end of each reporting period the Health Service assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit rating. All financial instruments assets, except those measured at fair value through profit and loss, are subject to annual review of impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off and allowance for doubtful receivables are recognised as expenses in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate.

Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has been less than its cost price for a period of 12 or more months, the financial asset is treated as impaired.

(j) Non-Financial Assets

Inventories

Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business operations. It includes land held for sale and excludes depreciable assets.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value.

The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis.

Cost for all other inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.

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.

Crown Land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the land, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply.

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.



28

Revaluations of Non-current Physical Assets

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

Revaluation increments are 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 at an expense in net result, the increment is recognised as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation surplus.

Revaluation surplus are normally not transferred to accumulated funds on derecognition of the relevant asset.

In accordance with FRD 103D the Health Service’s non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.

Other non-financial assets

Prepayments

Other non-financial assets include prepayments which represents payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

Disposal of Non-Financial Assets

Any gain or loss on the sale of non-financial assets is recognised at the date that control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time.

Impairment of Non-Financial Assets

Apart from intangible assets with indefinite useful lives, all other assets are assessed annually for indications of impairment

● inventories; and

● financial assets;

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of the future cash flows expected to be obtained from the asset and fair value less costs to sell.



29

(k) Liabilities

Payables

These amounts consist predominantly of liabilities for goods and services.

Payables are initially recognised at fair value, and then subsequently carried at amortised cost and represent liabilities for goods and services provided to the Health Service prior to the end of the financial year that are unpaid, and arise when the health service becomes obliged to make future payments in respect of the purchase of these goods and services.

The normal credit terms are usually Nett 30 days.

Provisions

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

Employee Benefits

Wages and Salaries, Annual Leave and Accrued Days Off

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accrued days off expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee’s services up to the reporting date, and are classified as current liabilities and measured at their nominal value.

Those liabilities that the Health Service does not expect to settle within 12 months are recognized in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long Service Leave

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

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed in the notes to the financial statements as a current liability even where the Health Service does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

● present value – component that the Health Service does not expect to settle within 12 months; and

● nominal value – component that the Health Service expects to settle within 12 months.

Non Current Liability – conditional LSL (represents less than 10 years of continuous service) 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. Conditional LSL is required to be measured at present value.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.

Termination Benefits

Termination benefits are payable when employment is terminated before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits.

Liabilities for termination benefits are recognised when a detailed plan for termination has been developed and a valid expectation has been raised with those employees affected that the terminations will be carried out. The liabilities for termination benefits are recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision.



30

On-Costs

Employee benefit on-costs are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities.

Superannuation liabilities

The Health Service does not recognise any unfunded defined benefit liability in respect of the superannuation

plans because the Health Service 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 administers and discloses the State’s defined benefit liabilities in its financial statements

(l) Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.

Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Operating Leases

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.

Operating lease payments, including any contingent rentals, are recognised as an expense in the operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased assets.

(m) Equity

Contributed Capital

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions have also been designated as contributed capital is also treated as contributed capital.

Property, Plant & Equipment Revaluation Surplus

The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets.

Specific Restricted Purpose Reserve

A specific restricted purpose reserve is established where the Health Service has possession or title to the funds but has no discretion to amend or vary the restriction and/or condition underlying the funds received.

(n) Commitments for expenditure

Commitments for expenditure are not recognised on the balance sheet. Commitments for expenditure are disclosed at their nominal value and are inclusive of the GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated.

(o) Contingent assets and contingent liabilities

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

(p) Goods and Services Tax

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognized as part of the cost of acquisition of the asset or part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.



31

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

(q) Rounding of Amounts

All amounts shown in the financial statements are expressed to the nearest $1,000.

(r) New Accounting Standards and Interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2011 reporting period.

As at 30 June 2011, the following standards and interpretations had been issued but were not mandatory for financial years ending 30 June 2011.

The Health Service has not and does not intend to adopt these standards early.

Standard/Interpretation Summary

Applicable for reporting

periods beginning on or

ending on

Impact on Health

Service’s Annual

Statements

AASB 9 Financial instruments This standard simplifies requirements

for the classification and measurement

of financial assets resulting from Phase

1 of the IASB’s project to replace IAS 39

Financial Instruments: Recognition and

Measurement (AASB 139 Financial

Instruments: Recognition and

Measurement).

Beginning

1 Jan 2013

Detail of impact is still

being assessed.

AASB 124 Related Party

Disclosures (Dec 2009)

Government related entities have been

granted partial exemption with certain

disclosure requirements.

Beginning

1 Jan 2011

Preliminary assessment suggests the impact is insignificant.

AASB 1053 Application of

Tiers of Australian

Accounting Standards

This Standard establishes a

differential financial reporting

framework consisting of two

tiers of reporting requirements

for preparing general purpose

financial statements.

Beginning 1 July 2013 The Victorian

Government is

currently considering

the impacts of

Reduced Disclosure

Requirements (RDRs)

for certain public

sector entities and has

not decided if RDRs

will be implemented to

the Victorian Public

Sector.



32

AASB 2009-11

Amendments to

Australian Accounting

Standards arising from

AASB 9 [AASB 1, 3, 4, 5,

7, 101, 102, 108, 112,

118, 121, 127, 128, 131,

132, 136, 139, 1023 and

1038 and Interpretations

10 and 12]

This Standard gives effect to

consequential changes

arising from the issuance of

AASB 9.

Beginning

1 Jan 2013


being assessed.

AASB 2009-12

Amendments to


Standards [AASB 5, 8,

108, 110, 112, 119, 133,

137, 139, 1023 and 1031

and Interpretations 2, 4,

16, 1039 and 1052]

This standard amends

AASB 8 to require an entity

to exercise judgement in

assessing whether a

government and entities

known to be under the

control of that government

are considered a single

customer for purposes of

certain operating segment

disclosures.

This standard also makes

numerous editorial

amendments to other AASs.

Beginning

1 Jan 2011

The amendments only

apply to those entities to

whom AASB 8 applies,

which are for-profit

entities except for-profit

government

departments.


being assessed.

AASB 2009-14

Amendments to

Australian Interpretation

– Prepayments of a

Minimum Funding

Requirement

Amendments to

Interpretation 14 arise from

the issuance of prepayments

of a minimum funding

requirement.

Beginning

1 Jan 2011

Expected to have no

significant impact.

AASB 2010-2

Amendments to



Reduced Disclosure

Requirements

This Standard makes

amendments to many


Standards, including

Interpretations, to introduce

reduced disclosure

requirements to the

pronouncements for

application by certain types

Beginning 1 July

2013

Does not affect financial

measurement or

recognition, so is not

expected to have any

impact on financial result

or position. May reduce

some note disclosures in

financial statements.

AASB 2010-4 Further

Amendments to



the Annual

Improvements Project

[AASB 1, AASB 7, AASB

101 & AASB 134 and

Interpretation 13]

This Standard makes

numerous improvements

designed to enhance the

clarity of standards.

Beginning

1 Jan 2011

No significant impact on

the financial statements.

AASB 2010-5

Amendments to


Standards [AASB 1, 3, 4,

5, 101, 107, 112, 118,

119, 121, 132, 133, 134,

137, 139, 140, 1023 &

1038 and Interpretations

112, 115, 127, 132 &

1042]

This amendment contains

editorial corrections to a

range of Australian

Accounting Standards and

Interpretations, which

includes amendments to

reflect changes made to the

text of IFRSs by the IASB.

Beginning

1 Jan 2011

No significant impact on

the financial statements.



33

AASB 2010-6 Amendments to


Standards – Disclosures on

Transfers of Financial Assets

[AASB 1 & AASB 7]

This amendment adds and

changes disclosure

requirements about the

transfer of financial assets.

This includes the nature and

risk of the financial assets.

Beginning

1 July 2011

This may impact on

departments and public

sector entities as it creates

additional disclosure for

transfers of financial

assets.


being assessed.



Standards arising from AASB 9

(December 2010) [AASB 1, 3,

4, 5, 7, 101, 102, 108, 112,

118, 120, 121, 127, 128, 131,

132, 136, 137, 139, 1023 &

1038 and Interpretations 2, 5,

10, 12, 19 & 127]

These amendments are in

relation to the introduction of

AASB 9.

Beginning

1 Jan 2013

This amendment may

have an impact on

departments and public

sector bodies as AASB 9 is

a new standard and it

changes the requirements

of numerous standards.


being assessed.



Standards – Deferred Tax:

Recovery of Underlying Assets

[AASB 112]

This amendment provides a

practical approach for

measuring deferred tax assets

and deferred tax liabilities

when measuring investment

property by using the fair

value model in AASB 140

Investment Property.

Beginning

1 Jan 2012

This amendment provides

additional clarification

through practical

guidance.



Standards – Severe

Hyperinflation and Removal of

Fixed Dates for First-time

Adopters [AASB 1]

This amendment provides

guidance for entities emerging

from severe hyperinflation

who are going to resume

presenting Australian

Accounting Standards financial

statements or entities that are

going to present Australian

Accounting Standards financial

statements for the first time.

It provides relief for first-time

adopters from having to

reconstruct transactions that

occurred before their date of

transition to Australian

Accounting Standards.

Beginning

1 July 2011

Amendment unlikely to

impact on public sector

entities.



Standards arising from the

Trans-Tasman Convergence

Project [AASB 1, AASB 5, AASB

101, AASB 107, AASB 108,

AASB 121, AASB 128, AASB

132 & AASB 134 and

Interpretations 2, 112 & 113]

This amendment affects

multiple Australian Accounting

Standards and AASB

Interpretations for the

objective of increased

alignment with IFRSs and

achieving harmonisation

between both Australian and

New Zealand Standards. It

achieves this by removing

guidance and definitions from

some Australian Accounting

Standards, without changing

their requirements.

Beginning

1 July 2011

This amendment will have

no significant impact on

public sector bodies.



34

AASB 2011-2

Amendments to

Australian

Accounting

Standards arising

from the Trans-

Tasman

Convergence Project

– Reduced

Disclosure

Requirements

[AASB 101 & AASB

The objective of this amendment is to

include some additional disclosure from

the Trans-Tasman Convergence Project

and to reduce disclosure requirements for

entities preparing general purpose

financial statements under Australian

Accounting Standards – Reduced

Disclosure Requirements.

Beginning

1 July 2013

The Victorian

Government is currently

considering the impacts

of Reduced Disclosure

Requirements (RDRs)

and has not decided if

RDRs will be

implemented to

Victorian Public Sector.

AASB 2011-3

Amendments to

Australian

Accounting

Standards – Orderly

Adoption of

Changes to the ABS

GFS Manual and

Related

Amendments [AASB

1049]

This amends AASB 1049 to clarify the

definition of the ABS GFS Manual, and to

facilitate the adoption of changes to the

ABS GFS Manual and related disclosures.

Beginning

1 July 2012

This amendment

provides clarification to

users on the version of

the GFS Manual to be

used and what to

disclose if the latest GFS

Manual is not used.

No impact on

performance

measurements will

occur.

(s) Category Groups

The Health Service has used the following category groups for reporting purposes for the current and previous financial years.

Acute Health (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are delivered in public hospitals, or free standing day hospital facilities, or palliative care facilities, or rehabilitation facilities, or alcohol and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids.

Aged Care comprises revenue/expenditure form Home and Community Care (HACC) programs, allied Health, Aged Care Assessment and support services.

Primary Health comprises revenue/expenditure for Community Health Services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy.

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psycho geriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from DH under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health-funded community care units (CCUs) and secure extended care units (SECs).

Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately classified above, including: Public health services including Laboratory testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Kooris liaison officers, immunisation and screening services, Drugs services including drug withdrawal, counselling and the needle and syringe program, Dental Health services including general and specialist dental care, school dental services and clinical education, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.

35



Note 2: Revenue HSA HSA H&CI H&CI Total Total

2011 2010 2011 2010 2011 2010

$ $ $ $ $ $

Revenue from Operating Activities

Government Grants

- Department of Health 4,313,381 4,124,064 - - 4,313,381 4,124,064

- State Government - Other

- Other 19,460 - - - 19,460 -

- Commonwealth Government

- Residential Aged Care Subsidy 1,557,630 1,436,286 - - 1,557,630 1,436,286

Total Government Grants 5,890,471 5,560,350 - - 5,890,471 5,560,350

Indirect Contributions by Department of

- Insurance 151,189 115,125 - - 151,189 115,125

- Long Service Leave 50,058 47,316 - - 50,058 47,316

Total Indirect Contributions by

Department of Health 201,247 162,441 - - 201,247 162,441

Patient and Resident Fees

- Patient and Resident Fees (refer note 2b) 230,736 155,470 - - 230,736 155,470

- Residential Aged Care (refer note 2b) 485,840 401,379 - - 485,840 401,379

Total Patient & Resident Fees 716,576 556,849 - - 716,576 556,849

Commercial Activities & Specific Purpose

- Catering 109,519 130,670 - - 109,519 130,670

- Laundry 2,714 1,413 - - 2,714 1,413

- Property Income 47,399 77,100 - - 47,399 77,100

- Research 65,611 - - - 65,611 -

- Property Maintenance 43,474 - - - 43,474 -

Total Business Units & Specific Purpose

Funds 268,717 209,183 - - 268,717 209,183

Other Revenue from Operating Activities 720,751 119,945 - - 720,751 119,945

Sub-Total Revenue from Operating

Activities 7,797,762 6,608,768 - - 7,797,762 6,608,768

Revenue from Non-Operating Activities

Interest & Dividends 99,358 71,269 - 99,358 71,269

Sub-Total Revenue from Non-Operating

Activities 99,358 71,269 - - 99,358 71,269

Revenue from Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment 47,085 100,000 - - 47,085 100,000

Commonwealth Government Capital Grants 123,107 123,858 - - 123,107 123,858

Residential Accommodation Payments (refer

note 2b) 131,565 91,011 - - 131,565 91,011

Net Gain/(Loss) on Disposal of Non-

Financial Assets (refer note 2c) (1,816) 6,874 - - (1,816) 6,874

Donations & Bequests - - 36,216 65,272 36,216 65,272

Sub-Total Revenue from Capital Purpose

Income 299,941 321,743 36,216 65,272 336,157 387,015

Share of Net Result of Associates & Joint

Ventures Accounted for using the Equity

Method (refer note 8) - - - (29,450) - (29,450)

Total Revenue (refer to note 2a) 8,197,061 7,001,780 36,216 35,822 8,233,277 7,037,602

Indirect contributions by Department of Health: Department of Health makes certain payments on behalf of the

Health Service. These amounts have been brought to account in determining the operating result for the year by

recording them as revenue and expenses.

This note relates to revenues above the net result line only, and does not reconcile to comprehensive income

36



Note 2a: Analysis of Revenue by Source(based on the consolidated view of note 2)

2011 2011 2011 2011 2011

$ $ $ $ $

Revenue from Services Supported by

Health Services Agreement

Government Grants 4,332,841 1,557,630 - - 5,890,471

Indirect contributions by Department of

Health 104,648 84,524 12,075 - 201,247

Patient & Resident Fees (refer note 2b) 181,756 485,840 48,980 - 716,576

Other Revenue from Operating Activities 989,468 - - - 989,468

Interest & Dividends 33,254 27,209 2,617 36,278 99,358

Capital Purpose Income (refer note 2) 47,085 254,672 (1,816) - 299,941

Sub-Total Revenue from Services

Supported by Health Services Agreement5,689,052 2,409,875 61,856 36,278 8,197,061


Hospital and Community Initiatives*

Donations & Bequests (non capital) - - - 36,216 36,216


Supported by Hospital and Community

Initiatives - - - 36,216 36,216

Total Revenue 5,689,052 2,409,875 61,856 72,494 8,233,277

2010 2010 2010 2010 2010

$ $ $ $ $


Health Services Agreement

Government Grants 3,110,835 2,157,614 291,901 - 5,560,350

Indirect contributions by Department of

Health84,468 68,226 9,747 - 162,441

Patient & Resident Fees (refer note 2b) 102,028 401,379 53,442 - 556,849

Other Revenue from Operating Activities 329,128 - - - 329,128

Interest & Dividends 23,518 19,243 2,851 25,657 71,269

Capital Purpose Income (refer note 2) 100,000 214,869 6,874 - 321,743

Share of Net Result of Associates & Joint

Ventures Accounted for using the Equity

Method (refer note 8)

(29,450) - - - (29,450)


Supported by Health Services Agreement3,720,527 2,861,331 364,815 25,657 6,972,330


Hospital and Community Initiatives

Donations & Bequests (non capital) - - - 65,272 65,272


Supported by Hospital and Community

Initiatives - - - 65,272 65,272

Total Revenue 3,720,527 2,861,331 364,815 90,929 7,037,602

Indirect contributions by Department of Health:

Total

Other

Primary

Health Total

Admitted

Patients RAC

Department of Health makes certain payments on behalf of the Health Service. These amounts

have been brought to account in determining the operating result for the year by recording them

as revenue and expenses.

Admitted

Patients RAC

Primary

Health Other



37

Note 2b: Patient and Resident Fees

Total Total

2011 2010

$ $

Patient and Resident Fees Raised

Recurrent:

Acute

– Inpatients 174,972 95,374

– Outpatients 6,784 6,654

– Other 48,980 53,442

Residential Aged Care

– Generic 485,840 401,379

Total Recurrent 716,576 556,849

Capital Purpose:

Residential Accommodation Payments 131,565 91,011

Total Capital 131,565 91,011

Note 2c: Net Gain/(Loss) on Disposal of Non-Financial

AssetsTotal Total

2011 2010

$ $

Proceeds from Disposals of Non-Financial

Assets

Plant and Equipment 2,273 -

Motor Vehicles - 30,455

Total Proceeds from Disposal of Non-

Financial Assets 2,273 30,455

Less: Written Down Value of Non-

Financial Assets Sold

Plant and Equipment 4,089 2,101

Motor Vehicles - 21,480

Total Written Down Value of Non-

Financial Assets Sold 4,089 23,581

Net gains/(losses) on Disposal of Non-

Financial Assets (1,816) 6,874



38

Note 3: Expenses

HSA HSA Total Total

2011 2010 2011 2010

$ $ $ $

Employee Expenses

Salaries & Wages 4,853,805 4,475,199 4,853,805 4,475,199

WorkCover Premium 55,890 55,597 55,890 55,597

Long Service Leave 123,073 155,273 123,073 155,273

Superannuation 447,008 424,368 447,008 424,368

Total Employee Expenses 5,479,776 5,110,437 5,479,776 5,110,437

Non Salary Labour Costs

Fees for Visiting Medical Officers 199,241 195,029 199,241 195,029

Agency Costs - Nursing 95,454 34,022 95,454 34,022

Agency Costs - Other 31,011 38,003 31,011 38,003

Total Non Salary Labour Costs 325,706 267,054 325,706 267,054

Supplies & Consumables

Drug Supplies 49,184 40,282 49,184 40,282

Medical, Surgical Supplies and

Prosthesis 119,344 115,222 119,344 115,222

Pathology Supplies 7,041 6,475 7,041 6,475

Food Supplies 199,394 189,163 199,394 189,163

Total Supplies & Consumables 374,963 351,142 374,963 351,142

Other Expenses from Continuing

Operations

Domestic Services & Supplies 77,412 83,379 77,412 83,379

Fuel, Light, Power and Water 134,109 157,447 134,109 157,447

Insurance costs funded by the

Department of Health 151,189 115,125 151,189 115,125

Motor Vehicle Expenses 18,854 18,882 18,854 18,882

Repairs & Maintenance 98,409 66,744 98,409 66,744

Maintenance Contracts 53,560 57,498 53,560 57,498

Patient Transport 27,304 17,417 27,304 17,417

Bad & Doubtful Debts 656 48 656 48

Lease Expenses 77,227 24,161 77,227 24,161

Other Administrative Expenses 436,274 275,498 436,274 275,498

Other 406,729 56,546 406,729 56,546

8,310 8,200 8,310 8,200

Total Other Expenses from

Continuing Operations 1,490,033 880,945 1,490,033 880,945

Depreciation (refer note 4) 930,204 921,369 930,204 921,369

Total Expenses 8,600,682 7,530,947 8,600,682 7,530,947

This note relates to expenses above the net result line only, and does not reconcile to

comprehensive expenses

Audit Fees -VAGO-Adult of

Financial Statements



39

Note 3a: Analysis of Expenses by Source

Admitted

Patients RAC

Primary

Health Total

2011 2011 2011 2011

2011 $ $ $ $

Services Supported by Health Services

Agreement

Employee Expenses 2,849,432 2,301,551 328,793 5,479,776

Non Salary Labour Costs 169,367 136,797 19,542 325,706

Supplies & Consumables 206,230 149,985 18,748 374,963

Other Expenses from Continuing Operations 804,491 596,123 89,419 1,490,033

Sub-Total Expenses from Services Supported

by Health Services Agreement 4,029,520 3,184,456 456,502 7,670,478

Services Supported by Hospital and

Community Initiatives


Sub-total Expenditure from Services

supported by Health Services Agreement and

by Hospital and Community Initiatives 483,706 390,686 55,812 930,204

Total Expenses 4,513,226 3,575,142 512,314 8,600,682

Admitted

Patients RAC

Primary

Health Total

2010 2010 2010 2010

2010 $ $ $ $

Services Supported by Health Services

Agreement

Employee Expenses 2,657,427 2,146,384 306,626 5,110,437

Non Salary Labour Costs 138,868 112,163 16,023 267,054

Supplies & Consumables 193,128 140,457 17,557 351,142

Other Expenses from Continuing Operations 475,710 352,378 52,857 880,945

Sub-Total Expenses from Services Supported

by Health Services Agreement 3,465,133 2,751,382 393,063 6,609,578

Services Supported by Hospital and

Community Initiatives


Sub-total Expenditure from Services

supported by Health Services Agreement and

by Hospital and Community Initiatives 479,112 386,975 55,282 921,369

Total Expenses 3,944,245 3,138,357 448,345 7,530,947



40

Note 4: Depreciation

Total Total

2011 2010

$ $

Depreciation

Buildings 755,977 755,927

Plant & Equipment 41,342 53,653

Medical Equipment 32,398 29,378

Computers and Communication 3,373 2,457

Furniture and Fittings 43,160 39,725

Motor Vehicles 53,954 40,229

Landscaping and Paving

Total Depreciation 930,204 921,369

Note 5: Cash and Cash Equivalents

Total Total

2011 2010

$ $

Cash at Bank 400 200

Deposits at Call 1,741,987 2,052,455

TOTAL 1,742,387 2,052,655

Represented by:

Cash for Health Service Operations (as

per Cash Flow Statement) 1,679,437 1,929,975

Cash for Monies Held in Trust

- Cash at Bank 62,950 122,680

TOTAL 1,742,387 2,052,655

For the purposes of the cash flow statement, cash assets includes

cash on hand and in banks, and short-term deposits which are

readily convertible to cash on hand, and are subject to an

insignificant risk of change in value, net of outstanding bank

overdrafts.



41

Note 6: ReceivablesTotal Total

2011 2010

$ $

CURRENT

Contractual

Trade Debtors 217,708 34,987

Patient Fees 83,100 79,122

DoH Receivables 48,480 21,673

Accrued Revenue - 11,387

349,288 147,169

Statutory

GST Receivable 80,434 36,376

TOTAL CURRENT RECEIVABLES 429,722 183,545

NON CURRENT

Statutory

Long Service Leave - Department of

Health 191,647 141,590

TOTAL NON-CURRENT RECEIVABLES 191,647 141,590

TOTAL RECEIVABLES 621,369 325,135

(a) Ageing analysis of receivables

Please refer to note 15b for the ageing analysis of contractual receivables

(b) Nature and extent of risk arising from receivables

Please refer to note 15b for the nature and extent of credit risk arising from contractual

receivables

Note 7: Inventories

Total Total

2011 2010

$ $

At Cost

Pharmaceuticals 16,592 16,601

Catering Supplies 11,604 7,780

Housekeeping Supplies 2,626 1,928

Medical and Surgical Lines 20,132 16,649

Engineering Stores 4,814 2,857

Administration Stores 10,773 6,667

TOTAL INVENTORIES 66,541 52,482



42

Total Total

2011 2010

$ $

- 94,997

TOTAL - 94,997

2011 2010 2011 2010

Name of Entity % % $ $

Jointly Controlled Entities

South West Alliance of

Rural Health Australia 0 3.68 - 48,942

Southern

Grampians/Glenelg PCP Australia 0 13 - 46,055

2011 2010

$ $

Summarised Financial Information of Associates:

Current Assets - 516,691

Non-Current Assets - 7,334

Total Assets - 524,025

Current Liabilities - 424,483

Non-Current Liabilities - 4,545

Total Liabilities - 429,028

Net Assets - 94,997

Total Income - (29,450)

Net Result - (29,450)

Note 8: Investments Accounted for Using the Equity

Method

Published Fair Value

Primary Care

Partnership

Information

Technology

Interest in Jointly Controlled Entities

Principal

Activity

Country of

Incorporation

Ownership

Interest



43

Note 9: Property, Plant & Equipment

Total Total

2011 2010

$ $

Land

Land at Fair Value 235,000 235,000

Total Land 235,000 235,000

Buildings

Buildings Under Construction at cost 792,086 52,498

Buildings at Fair Value 15,079,776 15,074,871

Less Acc'd Depreciation 1,511,905 755,927

Total Buildings 14,359,957 14,371,442

Plant and Equipment

Plant and Equipment at Fair Value 580,788 558,379

Less Acc'd Depreciation 412,931 378,568

Total Plant and Equipment 167,857 179,811

Medical Equipment

Medical Equipment at Fair Value 433,361 412,635


Total Medical Equipment 173,109 176,780

Computers and Communication

Computers and Communication at Fair Value 21,957 14,593


Total Computers and Communication 7,662 3,670

Furniture and Fittings

Furniture and Fittings at Fair Value 472,151 426,609


Total Furniture and Fittings 176,882 170,024

Motor Vehicles

Motor Vehicles at Fair Value 301,347 278,969


Total Motor Vehicles 159,569 191,144

TOTAL 15,280,036 15,327,871



44

Note 9: Property, Plant & Equipment (Continued)

Land Buildings Plant & Total

Equipment

$ $ $ $

Balance at 1 July 2009 235,000 15,070,000 672,488 15,977,488

Additions - 57,369 237,964 295,333

Disposals - - (23,581) (23,581)

Depreciation (note 4) - (755,927) (165,442) (921,369)

Balance at 1 July 2010 235,000 14,371,442 721,429 15,327,871

Additions - 744,493 141,965 886,458

Disposals - - (4,089) (4,089)

Depreciation (note 4) - (755,978) (174,226) (930,204)

Balance at 30 June 2011 235,000 14,359,957 685,079 15,280,036

Land and buildings carried at valuation

The effective date of the valuation is 30 June 2009

Note 10: Payables

Total Total

2011 2010

$ $

CURRENT

Contractual

Trade Creditors 254,625 116,786

Accrued Expenses 23,911 21,065

278,536 137,851

Statutory

GST Payable 12,042 8,078

PAYG Withholding 58,052 52,096

70,094 60,174

TOTAL CURRENT 348,630 198,025

(a) Maturity analysis of payables

Please refer to Note 15(c) for the ageing analysis of contractual payables

(b) Nature and extent of risk arising from payables

Reconciliations of the carrying amounts of each class of asset for the consolidated entity at the

beginning and end of the previous and current financial year is set out below.

An independent valuation of the Health Service's land and buildings was performed by the Valuer-

General Victoria to determine the fair value of the land and buildings. The valuation, which conforms to

Australian Valuation Standards, was determined by reference to the amounts for which assets could

be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation

was based on independent assessments.

Please refer to note 15(c) for the nature and extent of risks arising from contractual

payables



45

Note 11: Provisions

Total Total

2011 2010

$ $

Current Provisions

Employee Benefits

- Unconditional and expected to be settled within

12 months 407,701 321,275

- Unconditional and expected to be settled after

12 months 872,897 819,970

1,280,598 1,141,245

Provisions related to Employee Benefit On-Costs

- Unconditional and expected to be settled within

12 months (nominal value)

65,842 52,022

- Unconditional and expected to be settled after

12 months (nominal value)

104,953 111,253

170,795 163,275

Total Current Provisions 1,451,393 1,304,520

Non-Current Provisions

Employee Benefits 132,941 144,308

Provisions related to Employee Benefit On-Costs 12,557 14,340

Total Non-Current Provisions 145,498 158,648

Total Provisions 1,596,891 1,463,168

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costs

Unconditional LSL Entitlement 782,542 669,420

Annual Leave Entitlements 506,742 502,197

Accrued Wages and Salaries 137,887 114,004

Accrued Days Off 24,222 18,899

Non-Current Employee Benefits and related on-

costs

Conditional Long Service Leave Entitlements 145,498 158,648

Total Employee Benefits and Related On-Costs 1,596,891 1,463,168

Total Total

2011 2010

(b) Movements in Long Service Leave $ $

Balance at start of year 828,068 712,740

Provision made during the year

- Revaluations (4,706) 3,370

- Expense recognising Employee Service 173,481 151,902

Settlement made during the year (68,803) (39,944)

Balance at end of year 928,040 828,068



46

Note 12: Other LiabilitiesTotal Total

2011 2010

$ $

CURRENT

Monies Held in Trust

- Accommodation Bonds (Refundable Entrance Fees) 62,950 122,680

Total Current 62,950 122,680

Total Other Liabilities 62,950 122,680

Represented by the following assets:

Cash Assets (refer to Note 5) 62,950 122,680

TOTAL 62,950 122,680

Note 13: ReservesTotal Total

2011 2010

$ $

(a) Reserves

Property, Plant & Equipment Revaluation Surplus (1)

Balance at the beginning of the reporting period 8,735,195 8,735,195

Balance at the end of the reporting period 8,735,195 8,735,195

Represented by:

- Land 361,292 361,292

- Buildings 8,373,903 8,373,903

8,735,195 8,735,195

Restricted Specific Purpose Reserve

Balance at the beginning of the reporting period 479 479

(479) -

- 479

37,717 -

(37,717) 37,717

- 37,717

Total Reserves 8,735,195 8,773,391

(b) Contributed Capital


2,293,608 2,293,608


Net Result for the Year (367,405) (493,345)

38,196 -

4,673,059 5,002,268

(d) Total Equity at end of financial year 15,701,862 16,069,267

Total Monies Held in Trust

Transfer from /(to) Accumulated Surpluses

(1) The property, plant & equipment asset revaluation surplus arises on the revaluation of

property, plant & equipment.

Balance at the end of the reporting period


Transfers to and from Reserves


Transfer from /(to) Accumulated Surpluses

Net fair investment in Joint Venture revaluation surplus

(c) Accumulated Surpluses/(Deficits)

Investment in Joint Venture Revaluation Surplus



47

Total Total

2011 2010

$ $

Net Result for the Year (367,405) (493,345)

Depreciation 930,204 921,369

Net (Gain)/Loss from Sale of Plant and Equipment 1,816 (6,874)

Change in Operating Assets & Liabilities

(Increase)/Decrease in Receivables (278,820) (30,044)

(Increase)/Decrease in Inventories (14,059) 3,521

(Increase)/Decrease in Other Assets 77,581 -

Increase/(Decrease) in Payables 150,604 (78,192)

Increase/(Decrease) in Provisions 133,724 175,293

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 633,645 491,728

Note 15: Financial Instruments

(a) Financial Risk Management Objectives and Policies

Casterton Memorial Hospitals principal financial instruments comprise of:

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Payables (excluding statutory payables)

- Accommodation Bonds

Categorisation of Financial Instruments

Carrying

Amount

Carrying

Amount

2011 2010

$ $

Financial Assets

Cash and cash equivalents 1,742,387 2,052,655

Loans and Receivables 349,288 147,169

Total Financial Assets (i) 2,091,675 2,199,824

Financial Liabilities

At Amortised Cost 341,486 260,531

Total Financial Liabilities (ii) 341,486 260,531

Details of the significant accounting policies and methods adopted, including the criteria for

recognition, the basis of measurement and the basis on which income and expenses are

recognised, with respect to each class of financial asset, financial liability and equity instrument

are disclosed in note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage Castertom Memorial

Hospitals financial risks within the government policy parameters.

(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes

payable)

Note 14: Reconciliation of Net Result for the Year to Net

Cash Inflow/(Outflow) from Operating Activities

(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST

input tax credit recoverable)



48

Note 15: Financial Instruments (Continued)

Net holding gain/(loss) on financial instruments by category

Net holding

gain/(loss)

Net holding

gain/(loss)

2011 2010

$ $

Financial Assets

Cash & Cash Equivalent 99,358 71,269

Total Financial Assets 99,358 71,269

(b) Credit Risk

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 Casterton Memorial Hospital’s maximum exposure to credit risk without taking

account of the value of any collateral obtained.

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial

assets, the net gain or loss is calculated by taking the movement in the fair value of the

asset, interest revenue or losses arising from revaluation of the financial assets, and minus

any impairment recognised in the net result;

In addition, the 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.

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.



49

Note 15: Financial Instruments (continued)(b) Credit Risk (Continued)

Credit quality of contractual financial assets that are neither past due nor impaired

2011 $ $ $

Financial Assets

Cash and Cash Equivalents 1,742,387 - 1,742,387

Receivables

- Trade Debtors - 217,708 217,708

- Other Receivables (i) - 131,580 131,580

Total Financial Assets 1,742,387 349,288 2,091,675

2010

Financial Assets

Cash and Cash Equivalents 2,052,655 - 2,052,655

Receivables

- Trade Debtors - 34,987 34,987

- Other Receivables - 112,182 112,182

Total Financial Assets 2,052,655 147,169 2,199,824

Ageing analysis of Financial Asset as at 30 June

Less than 1

Month

1-3 Months 3 months - 1

Year

2011 $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 1,742,387 1,742,387 - - -

Receivables (i)

- Trade Debtors 217,708 200,010 1,254 404 16,040

- Other Receivables 131,580 113,589 12,608 23 5,360

Total Financial Assets 2,091,675 2,055,986 13,862 427 21,400

2010

Financial Assets

Cash and Cash Equivalents 2,052,655 2,052,655 - - -

Receivables (i)

- Trade Debtors 34,987 24,103 10,692 53 139

- Other Receivables 112,182 89,738 12,810 2,666 6,968

Total Financial Assets 2,199,824 2,166,496 23,502 2,719 7,107

There are no material financial assets which are individually determined to be impaired. Currently

the Casterton Memorial Hospital does not hold any collateral as security nor credit enhancements

relating to any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from

being past due or impaired, and they are stated at the carrying amounts as indicated. The ageing

analysis table above discloses the ageing only of contractual financial assets that are past due

but not impaired.

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from

Victorian Government and GST input tax credit recoverable).

Financial

institutions

(AAA credit

rating)

Other Total

Total

Carrying

Amount

Not Past Due

and Not

Impaired

Past Due But Not Impaired



50

Note 15: Financial Instruments (continued)

(c) Liquidity Risk

Carrying

Amount

Contractual

Cash Flows

Less than 1

Month

1-3

Months

3 months

- 1 Year

1-5 Years

2011 $ $ $ $ $ $


Payables 278,536 278,536 278,536 - - -

Other Financial Liabilities (i)

- Accommodation Bonds 62,950 62,950 - - - 62,950

Total Financial Liabilities 341,486 341,486 278,536 - - 62,950

2010


Payables 137,851 137,851 137,851 - - -

Other Financial Liabilities (i)

- Accommodation Bonds 122,680 122,680 - - - 122,680

Total Financial Liabilities 260,531 260,531 137,851 - - 122,680

(d) Market Risk

Currency Risk

The Casterton Memorial Hospitals exposures to market risk are primarily through interest rate risk

with only insignificant exposure to foreign currency and other price risks. Objectives, policies

and processes used to manage each of these risks are disclosed in the paragraph below.

The Casterton Memorial Hospital is exposed to insignificant foreign currency risk through its

payables relating to purchases of supplies and consumables from overseas. This is because of a

limited amount of purchases denominated in foreign currencies and a short timeframe between

commitment and settlement.

Liquidity risk is the risk that the Hospital would be unable to meet its financial obligations as and

when they fall due.

The Hospitals maximum exposure to liquidity risk is the carrying amounts of financial liabilities as

disclosed in the face of the balance sheet. The Hospital manages its liquidity risk as follows:

(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e

GST payable)

Maturity Dates

The following table discloses the contractual maturity analysis for Casterton Memorial Hospitals

financial liabilities. For interest rates applicable to each class of liability refer to individual notes

to the financial statements.

Maturity analysis of Financial Liabilities as at 30 June

Trade creditors are paid in accordance with their trading terms. Accommodation bonds are

refunded when the resident departs the aged care facility. Sufficient cash reserves are held to

ensure these commitments are met when due



51


Interest Rate Risk

Other Price Risk

Interest Rate Exposure of Financial Assets and Liabilities as at 30 June

Weighted Carrying

Average Amount Fixed Variable Non-

Effective Interest Interest Interest

Interest Rate Rate Bearing

2011 Rate (%) $ $ $ $

Financial Assets

Cash and Cash Equivalents 5.66 1,742,387 - 1,742,387 -

Receivables

- Trade Debtors 1.80 217,708 - - 217,708

- Other Receivables 0 131,580 - - 131,580

2,091,675 - 1,742,387 349,288


Payables 0 278,536 - - 278,536

Other Financial Liabilities

- Accommodation Bonds 0 62,950 - - 62,950

341,486 - - 341,486

2010

Financial Assets

Cash and Cash Equivalents 4.25 2,052,655 - 2,052,655 -

Receivables

- Trade Debtors - 34,987 - - 34,987

- Other Receivables 0 112,182 - - 112,182

2,199,824 - 2,052,655 147,169


Payables 0 137,851 - - 137,851


- Accommodation Bonds 0 122,680 - - 122,680

260,531 - - 260,531

Interest Rate Exposure

Exposure to interest rate risk is insignificant. Minimisation of risk is achieved by mainly

undertaking fixed rate or non-interest bearing financial instruments. For financial assets, the

Hospital holds financial assets with relatively even maturity profiles. Hospital mainly undertakes

financial liabilities with relatively even maturity profiles.

The Hospital is exposed to normal price fluctuations from time to time through market forces.

Where adequate notice is provided by suppliers, additional purchases are made for long term

goods. Supplier contracts are also in place for major product lines purchased by the Hospital

on a monthly basis. These contracts have set price arrangements and are reviewed on a

regular basis.



52


(d) Market Risk (continued)

Sensitivity Disclosure Analysis

- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 6%;

- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2%

Carrying

Amount

Profit Equity Profit Equity

2011 $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 1,742,387 (17,424) (17,424) 17,424 17,424

Receivables

- Trade Debtors 217,708 - - - -

- Other Receivables 131,580 - - - -


Payables 278,536 - - - -


- Accommodation Bonds 62,950 - - - -

(17,424) (17,424) 17,424 17,424

2010

Financial Assets

Cash and Cash Equivalents 2,052,655 (20,527) (20,527) 20,527 20,527

Receivables

- Trade Debtors 34,987 - - - -

- Other Receivables 112,182 - - - -


Payables 137,851 - - - -


- Accommodation Bonds 122,680 - - - -

(20,527) (20,527) 20,527 20,527

Taking into account past performance, future expectations, economic forecasts, and

management's knowledge and experience of the financial markets, Casterton Memorial Hospial

believes the following movements are 'reasonably possible' over the next 12 months (Base rates

are sourced from the Reserve Bank of Australia)

The following table discloses the impact on net operating result and equity for each category of

financial instrument held by Casterton Memorial Hospital at year end as presented to key

management personnel, if changes in the relevant risk occur.

Interest Rate Risk

-1% +1%



53


(e) Fair Value

Total

Carrying

Amount

Fair value Total

Carrying

Amount

Fair value

2011 2011 2010 2010

$ $ $ $

Financial Assets

Cash and Cash Equivalents 1,742,387 1,742,387 2,052,655 2,052,655

Receivables

- Trade Debtors 217,708 217,708 34,987 34,987

- Other Receivables 131,580 131,580 112,182 112,182

Total Financial Assets 2,091,675 2,091,675 2,199,824 2,199,824


Payables 278,536 278,536 137,851 137,851


- Accommodation Bonds 62,950 62,950 122,680 122,680

Total Financial Liabilities 341,486 341,486 260,531 260,531

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 Services considers that the carrying amount of financial instrument assets and

liabilities recorded in the financial statements to be a fair approximation of their fair values,

because of the short-term nature of the financial instruments and the expectation that they

will be paid in full.

The following table shows that the fair values of most of the contractual financial assets and

liabilities are the same as the carrying amounts.

Comparison between carrying amount and fair value



54

Note 16: Commitments for Expenditure

Total Total

2011 2010

$ $

Lease commitments

Commitments in relation to leases contracted for at

the reporting date:

Operating Leases 45,900 38,444

Total lease commitments 45,900 38,444

Operating Leases

Non-cancellable

Not later than one year 20,590 16,276

Later than 1 year and not later than 5 years 25,310 22,168

Sub Total 45,900 38,444

TOTAL 45,900 38,444

Total Commitments for Expenditure (inclusive of

GST) 45,900 38,444

less GST recoverable from the Australian Tax Office (4,173) (3,495)

Total Commitments for Expenditure (exclusive of

GST) 41,727 34,949

Note 17: Contingent Assets and Contingent Liabilities

There are no known contingent assets or liabilities (2010 nil).

Ca

ste

rto

n M

em

ori

al H

osp

ita

l

No

tes

to t

he

Fin

an

cia

l Sta

tem

en

ts 3

0 J

un

e 2

011

55

Note 1

8:

Operatin

g S

egm

en

ts

20

11

20

10

20

11

20

10

20

11

20

10

20

11

20

10

$$

$$

$$

$$

Exte

rnal Segm

ent

Revenue

4,2

30,1

09

3,6

37,8

07

3,4

15,8

34

2,9

38,2

29

487,9

76

419,7

47

8,1

33,9

19

6,9

95,7

83

Tota

l R

evenue

4,2

30

,10

9

3,6

37

,80

7

3,4

15

,83

4

2,9

38

,22

9

4

87

,97

6

4

19

,74

7

8,1

33

,91

9

6

,99

5,7

83

EX

PEN

SES

Exte

rnal Segm

ent

Expenses

(4,4

72,3

55)

(3,9

30,9

70)

(3,6

12,2

86)

(3,1

56,2

25)

(

516,0

41)

(

443,7

52)

(8,6

00,6

82)

(7,5

30,9

47)

Tota

l Expenses

(4

,47

2,3

55

)

(3

,93

0,9

70

)

(3

,61

2,2

86

)

(3

,15

6,2

25

)

(

51

6,0

41

)

(

44

3,7

52

)(8

,60

0,6

82

)

(7

,53

0,9

47

)

Net

Result

from

ordin

ary a

cti

vit

ies

(2

42

,24

6)

(2

93

,16

3)

(1

96

,45

2)

(2

17

,99

6)

(

28

,06

5)

(

24

,00

5)

(4

66

,76

3)

(5

35

,16

4)

Inte

rest

Incom

e

69,5

32

49,4

13

27,2

09

19,1

24

2,6

17

2,7

32

99,3

58

71,2

69

Share

of N

et

Result o

f Associa

tes &

Join

t Ventu

res u

sin

g E

quity M

eth

od

-

(29,4

50)

-

-

-

-

-

(29,4

50)

Net

Result

for Y

ear

(1

72

,71

4)

(2

73

,20

0)

(1

69

,24

3)

(1

98

,87

2)

(

25

,44

8)

(

21

,27

3)

(3

67

,40

5)

(4

93

,34

5)

OTH

ER

IN

FO

RM

ATIO

N

Segm

ent

Assets

9,1

96,7

07

9,3

04,8

99

7,4

28,1

10

7,4

79,7

11

1,0

61,1

59

1,0

68,5

30

17,6

85,9

76

17,8

53,1

40

Tota

l A

ssets

9,1

96

,70

7

9,3

04

,89

9

7,4

28

,11

0

7,4

79

,71

1

1,0

61

,15

9

1,0

68

,53

0

17

,68

5,9

76

1

7,8

53

,14

0

Segm

ent

Lia

bilitie

s

1

,031,7

39

927,6

14

833,3

28

749,2

27

119,0

47

107,0

32

1,9

84,1

14

1,7

83,8

73

Tota

l Lia

bilit

ies

1,0

31

,73

9

9

27

,61

4

8

33

,32

8

7

49

,22

7

1

19

,04

7

1

07

,03

2

1,9

84

,11

4

1

,78

3,8

73

Investm

ents

in A

ssocia

tes a

nd J

oin

t

Ventu

re P

art

ners

hip

47,4

34

94,9

97

-

-

-

-

47,4

34

94,9

97

Acquis

itio

n o

f Pro

pert

y, Pla

nt

and

Equip

ment

and I

nta

ngib

le A

ssets

886,4

60

295,3

33

-

-

-

-

886,4

60

295,3

33

Depre

cia

tion &

Am

ort

isation E

xpense

461,3

31

479,1

10

372,6

13

386,9

76

53,2

30

55,2

83

887,1

74

921,3

69

The m

ajo

r pro

ducts

/serv

ices fro

m w

hic

h t

he a

bove s

egm

ents

derive r

evenue a

re:

Bu

sin

ess S

eg

me

nts

Se

rvic

es

Hospital

Acute

Bed B

ased S

erv

ices

Resid

ential Aged C

are

Serv

ices (

RACS)

Pro

vider

of re

sid

ential aged c

are

beds

Prim

ary

Care

Serv

ices

Prim

ary

Care

and C

om

munity b

ased s

erv

ices

Ge

og

rap

hic

al S

eg

me

nt

Caste

rton M

em

orial H

ospital opera

tes p

redom

inantly in t

he W

este

rn D

istr

ict

of V

icto

ria.

More

than 9

0%

of re

venue,

net

surp

lus fro

m o

rdin

ary

activi

ties a

nd

segm

ent

assets

rela

te t

o o

pera

tions in t

he W

este

rn D

istr

ict

of V

icto

ria

To

tal

Ho

sp

ita

lR

AC

SP

rim

ary

Ca

re



56

Note 19: Jointly Controlled Operations and Assets

Name of Entity Principal Activity 2011 2010

% %

South West Alliance of Rural Health Information Systems 3.61 0

Southern Grampians Glenelg Shire Primary

Care Partnership 13

Casterton Memorial Hospitals interest in assets employed in the above jointly controlled

operations and assets is detailed below. The amounts are included in the financial statements

under their respective asset categories:

2011 2010

$ $

Current Assets

Cash and Cash Equivalents 59,187 -

Other Current Assets 153,469 -

Total Current Assets 212,656 -

Non Current Assets

Property, Plant and Equipment 5,867 -

Total Non Current Assets 5,867 -

Total Assets 218,523 -

Current Liabilities

Payables 60,330 -

Revenues in Advance 16,290

Employee Benefits 59,667 -

Total Current Liabilities 136,287 -

Non Current Liabilitis

Employee Benefits 8,614 -

Total Non Current Liabilities 8,614 -

Total Liabilities 281,188 -

Casterton Memorial Hospitals interest in revenues and expenses resulting from jointly

controlled operations and assets is detailed below:

2011 2010

$ $

Revenues

Other 717,600 -

Total Revenue 717,600 -

Expenses

Information Technology and Administrative Expenses 659,985 -

Primary Care Partnership Program Expenses 79,186

Total Expenses 739,171 -

Net result (21,571) -

Ownership Interest



57

Note 20a: Responsible Persons Disclosures

The Honourable Daniel Andrews, MLA, Minister

Governing Boards

Mr T Baker

Mr A Bunnik

Dr T Halloran

Mr E Edge

Mr D Huett

Mr G Sheppard

Mrs C Brown

Fr A Hayes

Mr R Dalby

Accountable Officers

Mr O Stephens

Remuneration of Responsible Persons

The number of Responsible Persons are shown in their relevant income bands;

2011 2010

Income Band No. No.

$0 - $9,999 8 9

$160,000 - $169,999 1

$170,000 - $179,000 1

Total Numbers 9 10

$176,108 $168,774

Executive Officers' Remuneration

2011 2010 2011 2010

No. No. No. No.

$110,000 - $119,999 - 1 - 1

$120,000 - $129,000 1 - 1 -

Total Numbers 1 1 1 1

Total Remuneration 121,923 119,516 121,923 119,516

Note 21: Events Occurring after the Balance Sheet Date

2/12/2010 - 30/6/2011

1/07/2010 - 30/06/2011

1/07/2010 - 30/06/2011

1/07/2010 - 20/04/2011

There have been no events subsequent to the reporting date which require further disclosure.

(2010 nil)

The numbers of executive officers, other than Ministers and Accountable Officers, and

their total remuneration during the reporting period are shown in the first two columns

in the table below their relevant income bands. The base remuneration of executive

officers is shown in the third and fourth columns. Base remuneration is exclusive of

bonus payments, long service leave payments, redundancy payments and retirement

benefits.

Total Remuneration Base Remuneration

The Honourable David Davis, MP, Minister for Health and Ageing

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial

Management Act 1994 , the following disclosures are made regarding responsible persons for the

reporting period.

Note 20b: Executive Officer Disclosures

1/07/2010 - 30/06/2011

1/07/2010 - 30/06/2011

1/07/2010 - 30/06/2011

Total remuneration received or due and receivable by Responsible

Persons from the reporting entity amounted to:

Amounts relating to Responsible Ministers are reported in the financial

statements of the Department of Premier and Cabinet

Remuneration

Responsible Ministers:

Period

1/07/2010 - 30/06/2011

1/07/2010 - 30/06/2011

1/07/2010 - 30/06/2011

1/07/2010 - 27/11/2010

58

2010-2011

Legislation Requirement Page Reference

Ministerial Requirements

Report of Operations

Charter and Purpose

FRD 22B Manner of establishment and the relevant Ministers 2 & 4

FRD 22B Objectives, functions, powers and duties Inside front cover & Pg 2

FRD 22B Nature and range of services provided 1 & 3

Management and structure

FRD 22B Organisational structure Inside back cover

Financial and other information

FRD 10 Disclosure Index 56

FRD 15B Executive Officers Disclosure 10

FRD 21A Responsible person and executive officer disclosures 55

FRD 22B Application and operation of Freedom of Information Act 1982 7

FRD 22B Application and operation of Whistleblowers Protection Act 2001 8

FRD 22B Compliance with building and maintenance provisions of Building Act 1993 7

FRD 22B Details of consultancies under $100,000 7

FRD 22B Major changes or factors affecting performance 6

FRD 22B Occupational health and safety 8

FRD 22B Operational and budgetary objectives and performance against objectives 6

FRD 22B Significant changes in financial position during the year 6

FRD 22B Statement of availability of other information 8

FRD 22B Statement on National Competition Policy 8

FRD 22B Subsequent events 7 & 55

FRD 22B Summary of the financial results for the year 6

FRD 22B Workforce Data Disclosures including a statement on the application of employment and conduct principles

8 & 9

FRD 25 Victorian Industry Participation Policy disclosures 8

SD 4.2 (j) Report of Operations, Responsible Body Declaration 4 & 10

SD 3.4.13 Attestation on Data Integrity 9

SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management Standard 9

Financial Statements

Financial statements required under Part 7 of the FMA

SD 4.2(b) Comprehensive Operating Statement 13

SD 4.2(b) Balance Sheet 14

SD 4.2(b) Statement of Changes in Equity 15

SD 4.2(b) Cash Flow Statement 16

Other requirements under Standing Directions 4.2

SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements

4 & 18

SD 4.2(c) Accountable Officer’s declaration 10

SD 4.2(c) Compliance with Ministerial Directions 4 & 10

SD 4.2(d) Rounding of amounts 29

The Annual Report of the Casterton Memorial Hospital is prepared in accordance with all relevant Victorian Legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation

Freedom of Information Act 1982 Pg 7

Whistleblowers Protection Act 2001 Pg 8

Victorian Industry Participation Policy Act 2003 Pg 8

Building Act 1993 Pg 7

Financial Management Act 1994 Pg 18

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2010-2011

NURSING

SERVICES

Wards

Theatre

Day Centre

Community Health

Infection Control

District Nursing

Nursing Personnel

HIGH CARE

RESIDENTIAL

SERVICES

Residential Care

Assessment

Standards

Monitoring

Certification

Accreditation

ENVIRONMENT

& CATERING

SERVICES

Food Supply

Linen

Waste Disposal

Laundry

Housekeeping

Function

Meals On Wheels

MAINTENANCE

SERVICES

Plant &

Equipment

Building

& Maintenance

Garden &

Grounds

Essential Services

Home &

Maintenance

Fleet Management

ADMINISTRATIVE

SERVICES

Finance Reporting

IT/Information Systems

Office Control

Health Information

Reception

Human Resources

Payroll

Supply Services

Risk Management

Contracts

OH&S

BOARD

SUBCOMMITTEES

Executive

Audit

SAFETY & OH&S

OH&S Designated Work

Group Representatives

Safety Data

Risk Management

DEPARTMENT HEADS

Executive

Department Heads

CLINICAL SERVICES

Theatre/A&E/Pharmacy

Infection Control

Residential Care

Primary Care

STAFF & CONSUMER COMMITTEES

Residents’ Committee Acute/Residential/DN

Primary Care Minimal Handling

Health Information Catering/Dietary Services

Casterton Memorial Hospital—Functional Organisational Chart

Casterton Memorial Hospital—Committee Composition

60

2010-2011


63 - 69 Russell Street, Casterton, Victoria 3311

Phone: (03) 555 42 555 Fax: (3) 55 811 051 Email: [email protected]

www.castertonmemorialhospital.com.au

annual report · it is the role of the board of management to utilise information available on our...

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