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BEECHWORTH HEALTH SERVICE
FINANCIAL STATEMENTS
for the year ended 30 June 2015
2nd page is blank
The attached financial statements for Beechworth Health Service have been preparedin accordance with Standing Direction 4.2 of the Financial Management Act 1994,applicable Financial Reporting Directions, Australian Accounting Standards includingInterpretations and other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive
operating statement, balance sheet, statement of changes in Equity, cash flow statement
and accompanying notes presents fairly the financial transactions during the year ended 30 June 2015 and financial position of Beechworth Health Service at 30 June 2015.
At the time of signing, we are not aware of any circumstance which would render any
particulars included in the financial statements to be misleading or inaccurate.
We authorise the attached financial statements for issue on this day.
K. E. Warner C Butler R. A. Ashwell
President of the Board Accountable Officer Chief Finance &
Accounting Officer
Beechworth Beechworth Beechworth
BEECHWORTH HEALTH SERVICE
Board member's, accountable officer's andchief finance & accounting officer's declaration
31 August 2015 31 August 2015 31 August 2015
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Comprehensive Operating Statement
For the financial year ended 30 June 2015
Note 2015 2014
$ $
Revenue from Operating Activities 2 12,303,573 11,953,905
Revenue from Non-operating Activities 2 203,460 170,235
Employee Expenses 3 (9,362,739) (9,236,324)
Non Salary Labour Costs 3 (372,313) (359,860)
Supplies & Consumables 3 (717,334) (626,616)
Other Expenses
- Domestic Services 3 (238,448) (233,543)
- Fuel, Light, Power & Water 3 (230,948) (290,186)
- Repairs & Maintenance 3 (349,842) (328,728)
- Administrative Expenses 3 (1,123,510) (1,224,690)
Net Result Before Capital & Specific Items 111,899 (175,807)
Capital Purpose Income 2 682,370 153,194
Depreciation 3 (849,664) (1,092,452)
Expenditure using Capital Purpose Income 3 (53,884) (30,290)
NET RESULT FOR THE YEAR (109,279) (1,145,355)
Other comprehensive income
Items that will not be reclassified to net result
Changes in physical asset revaluation reserve 15 - 4,386,487
COMPREHENSIVE RESULT FOR THE YEAR (109,279) 3,241,132
This Statement should be read in conjunction with the accompanying notes.
BEECHWORTH HEALTH SERVICE
page 4
Balance SheetAs at 30 June 2015
Note 2015 2014
$ $
Current Assets
Cash and Cash Equivalents 5 6,269,304 3,455,933
Receivables 6 542,480 687,394
Inventories 7 97,522 114,832
Total Current Assets 6,909,306 4,258,159
Non-Current Assets
Receivables 6 141,149 181,593
Property, Plant & Equipment 9 23,464,646 24,184,385
Investment Properties 10 265,000 265,000
Total Non-Current Assets 23,870,795 24,630,978
TOTAL ASSETS 30,780,101 28,889,137
Current Liabilities
Payables 11 268,179 319,044
Provisions 12 1,785,123 2,060,624
Accommodation Bonds 14 5,031,137 2,702,777
Other Liabilities 14 430,248 456,705
Total Current Liabilities 7,514,687 5,539,150
Non-Current Liabilities
Provisions 12 286,816 262,110
Total Non-Current Liabilities 286,816 262,110
TOTAL LIABILITIES 7,801,503 5,801,260
NET ASSETS 22,978,598 23,087,877
EQUITY
Property, Plant & Equipment Revaluation Surplus 15a 13,825,064 13,825,064
Contributed Capital 15b 8,310,690 8,310,690
Accumulated Surpluses/(Deficits) 15c 842,844 952,123
TOTAL EQUITY 22,978,598 23,087,877
Commitments 18
Contingent Assets and Contingent Liabilities 19
This Statement should be read in conjunction with the accompanying notes.
BEECHWORTH HEALTH SERVICE
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For the financial year ended 30 June 2015
Property, Plant
& Equipment
Revaluation
Surplus
Contributions
by Owners
Accumulated
Surpluses/
(Deficits) Total
Note $ $ $ $
Balance as at 1 July 2013 9,438,577 8,310,690 2,097,479 19,846,746
Net Result for the Year - - (1,145,355) (1,145,355)
Other Comprehensive Income for the Year 15a 4,386,486 4,386,486
Balance at 30 June 2014 13,825,063 8,310,690 952,124 23,087,877
Net Result for the Year 15c - - (109,279) (109,279)
Balance at 30 June 2015 13,825,063 8,310,690 842,845 22,978,598
This Statement should be read in conjunction with the accompanying notes.
BEECHWORTH HEALTH SERVICE
Statement of Changes in Equity
page 6
For the financial year ended 30 June 2015
Note 2015 2014
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Grants from Government 8,660,536 8,536,761
Patient and Resident Fees Received 1,742,215 1,419,495
GST Received from/(paid to) ATO 35,460 102,098
Interest Received 209,967 170,235
Other Receipts
- Shared Services 1,826,517 1,326,403
- Catering 83,477 102,693
- Property Rentals 11,780 9,640
- Other 173,649 175,872
Total receipts 12,743,601 11,843,197
Employee Expenses Paid (9,613,535) (9,305,919)
Non Salary Labour Costs (176,488) (188,968)
Fee for Service Medical Officers (195,825) (170,894)
Payments for Supplies & Consumables (717,334) (626,620)
FBT paid to ATO (5,700) (5,255)
Other Payments
- Fuel, Light and Power, Domestic Services (218,421) (290,187)
- Repairs and Maintenance (349,852) (344,875)
- Computer Services (245,865) (305,247)
- Hotel Services (238,448) (233,541)
- Other (957,917) (888,684)
Total payments (12,719,385) (12,360,190)
Cash Generated from Operations 24,216 (516,993)
Capital Grants from Government 493,356 20,200
Other Capital Receipts 84,107 71,479
NET CASH FLOW FROM/(USED IN) OPERATING
ACTIVITIES 16 601,679 (425,314)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments of Non-Financial Assets (79,188) (55,018)
Proceeds from Sale of Non-Financial Assets 9,545 -
Proceeds from Sale of Investments - 698,424
NET CASH FLOW FROM/(USED IN) INVESTING
ACTIVITIES (69,643) 643,406
NET INCREASE/(DECREASE) IN CASH AND CASH
EQUIVALENTS HELD 532,036 218,092
CASH AND CASH EQUIVALENTS AT BEGINNING OF
FINANCIAL YEAR 332,695 114,603
CASH AND CASH EQUIVALENTS AT END OF
FINANCIAL YEAR 5 864,731 332,695
This Statement should be read in conjunction with the accompanying notes
BEECHWORTH HEALTH SERVICE
Cash Flow Statement
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Note Page
1 Summary of significant accounting policies ........................................................... 9
2 Analysis of revenue by source ...............................................................................28
2a Net gain/(loss) on disposal of non-current assets ................................................... 30
3 Analysis of expenses by source ............................................................................31
3a Analysis of expenses and revenue by internally managed funds ................................32
4 Depreciation and amortisation ...............................................................................32
5 Cash and cash equivalents ...................................................................................32
6 Receivables ............................................................................................................33
7 Inventories .................................................................................................................33
8 Joint operations accounted for using the proportional method ..................................................................................34
9 Property, plant and equipment ..................................................................................35
10 Investment properties ............................................................................................40
11 Payables ...............................................................................................................40
12 Provisions .........................................................................................................41
13 Superannuation .........................................................................................................42
14 Other liabilities ............................................................................................................43
15 Equity............................................................................................................... 43
16 Reconciliation of net result for the year to net cash inflow/(outflow)
from operating activities ...........................................................................................................................44
17 Financial instruments .............................................................................................45
18 Commitments for expenditure............................................................................................................52
19 Contingent assets and contingent liabilities........................................................................................................52
20 Operating segments ....................................................................................................53
21a Responsible person disclosures ............................................................................54
21b Executive officer disclosures ............................................................................. 55
22 Auditors Remuneration ....................................................................................................55
23 Events occurring after the balance sheet date..............................................................................55
BEECHWORTH HEALTH SERVICE
Table of Contents
Notes to the Financial Statements30 June 2015
page 8
30 June 2015
These annual financial statements represent the audited general purpose financial statements for
Beechworth Health Service for the period ended 30 June 2015. The purpose of the report is to
provide users with information about the Health Services' stewardship of resources entrusted to it.
(a) Statement of Compliance
These financial statements are general purpose financial statements which have been prepared in
accordance with the Financial Management Act 1994 and applicable AASs which include interpretations
issued by the Australian Accounting Standards Board (AASB). They are presented in a manner
consistent with the requirements of AASB 101 Presentation of Financial Statements.
The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the
Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the
Minister for Finance.
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 AASs.
The annual financial statements were authorised for issue by the Board of Beechworth Health Service
on 31 August 2015
(b) Basis of accounting preparation and measurement
Accounting policies are selected and applied in a manner which ensures that the resulting
financial information 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 2015, and the comparative information presented in these financial
statements for the year ended 30 June 2014.
The going concern basis was used to prepare the financial statements.
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 those items, that is they are
recognised in the reporting period to which they relate, regardless of when cash is received or paid.
The financial statements are prepared in accordance with the historical cost convention, except for:
• non-current physical assets, which subsequent to acquisition, are measured at a revalued amount
being their fair value at the date of revaluation less any subsequent accumulated depreciation and
subsequent impairment losses. Revaluations are made and are reassesed with sufficient
regularity to ensure that the carrying amounts do not materially differ from their fair values;
• Investment properties after initial recognition, which are measured at fair value with changes
reflected in the comprehensive operating statement (fair value through profit and loss); and
• The fair value of assets other than land is generally based on their depreciated replacement value.
Judgements, estimates and assumptions are required to be made about the carrying values
of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on professional judgements derived from historical
experience and various other factors that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Note 1: Summary of Significant Accounting Policies
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30 June 2015
BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Consistent with AASB 13 Fair Value Measurement , Beechworth Health Service determines the policies
and procedures for both recurring fair value measurements such as property, plant and equipment,
investment properties and financial instruments, and for non-recurring fair value measurements such
as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and
the relevant FRDs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:
• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
For the purpose of fair value disclosures, Beechworth Health Service has determined classes of assets
and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level
of the fair value hierarchy as explained above.
In addition, Beechworth Health Service determines whether transfers have occurred between levels in
the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria (VGV) is Beechworth Health Services’s independent valuation agency.
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 and assumptions 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, relate to:
• the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(k);
• superannuation expense (refer to note 13); and
• actuarial assumptions for employee benefit provisions based on likely tenure of existing staff,
patterns of leave claims, future salary movements and future discount rates (refer to Note 1(l)).
(c) Reporting Entity
The financial statements includes all the controlled activities of the Beechworth Health Service.
Its principal address is:
52 Sydney Road
Beechworth
Victoria 3747
A description of the nature of Beechworth Health Service’s operations and its principal activities is
included in the report of operations, which does not form part of these financial statements.
Objectives and funding
Beechworth Health Service’s overall objective is to provide quality health services to its local
community, as well as improve the quality of life to Victorians.
Beechworth Health Service is predominantly funded by accrual based grant funding for the provision
of outputs.
(d) Principles of Consolidation
Intersegment Transactions
Transactions between segments within the Beechworth Health Service have been eliminated to reflect
the extent of the Beechworth Health Service’s operations as a group.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Jointly controlled operations
Interests in jointly controlled operations are not consolidated by Beechworth Health Service, but are accounted for in accordance with the policy outlined in Note 1(k) Financial Assets.
(e) Scope and Presentation of Financial Statements
Fund Accounting
The Beechworth Health Service operates on a fund accounting basis and maintains three funds:
Operating, Specific Purpose and Capital Funds. The Beechworth Health Service’s Capital and Specific
Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted
solely in respect of these funds.
Services Supported By Health Services Agreement and Services Supported By Hospital and
Community Initiatives
Activities classified as Services Supported by Health Services Agreement (HSA) are substantially
funded by the Department of Health and Human Services 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 Residential Aged Care Service operations are an integral part of the Beechworth Health Service
and shares its resources. An apportionment of land and buildings has been made based on floor space.
The results of the two operations have been segregated based on actual revenue earned and
expenditure incurred by each operation in Note 2 and 3 to the financial statements.
The Residential Aged Care is substantially funded from Commonwealth bed-day subsidies.
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 Beechworth Health
Service. This subtotal reports the result excluding items such as capital grants, assets received or
provided free of charge, depreciation, expenditure using capital purpose income and items of an
unusual nature and amount such as specific revenues and expenses. The exclusion of these items is
made to enhance matching of income and expenses so as to facilitate the comparability and
consistency of results between years and Victorian Public Health Services. The ‘Net Result Before
Capital & Specific Items’ is used by the management of Beechworth Health Service, the Department
of Health and Human Services and the Victorian Government to measure the ongoing performance
of Health Services.
Capital and specific items, which are excluded from this sub-total, comprise:
• Capital purpose income, which comprises all tied grants, donations and bequests received for the
purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible
assets. It also includes donations of plant and equipment (refer Note 1(g)). Consequently the
recognition of revenue as capital purpose income is based on the intention of the provider of the
revenue at the time the revenue is provided.
• Specific income/expense, comprises the following items, where material:
- Non-current asset revaluation increments/decrements
• Impairment of financial and non-financial assets, includes all impairment losses (and reversal of
previous impairment losses), which have been recognised in accordance with Note 1(k).
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
• Depreciation, as described in Note 1(h).
• Assets provided or received free of charge (refer to Note 1(g) and (h)).
• Expenditure using capital purpose income, comprises expenditure which either falls below the asset
capitalisation threshold or doesn’t meet asset recognition criteria and therefore does not result in
the recognition of an asset in the balance sheet, where funding for that expenditure is from capital
purpose income.
Balance sheet
Assets and liabilities are categorised either as current or non-current (non-current being those assets
or liabilities expected to be recovered/settled more than 12 months after reporting period), are
disclosed in the notes where relevant.
Statement of changes in equity
The statement of changes in equity presents reconciliations of each non-owner and owner 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.
Cash flow statement
Cash flows are classified according to whether or not they arise from operating activities, investing
activities, or financing activities. This classification is consistent with requirements under
AASB 107 Statement of Cash Flows.
Rounding
All amounts shown in the financial statements are expressed to the nearest dollar unless otherwise
stated.
Minor discrepancies in tables between totals and sum of components are due to rounding.
(f) Change in Accounting Policies
Subsequent to the 2013-14 reporting period, the following new and revised Standards have been adopted for the first time in the current period with their financial impacts disclosed.
AASB 11 Joint Arrangements
In accordance with AASB 11, there are two types of joint arrangements, i.e. joint operations and
joint ventures. Joint operations arise where the investors have rights to the assets and obligations
for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities,
revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the
arrangement; joint ventures are accounted for under the equity method. Proportionate consolidation
of joint ventures is no longer permitted.
Beechworth Health Service has reviewed its existing contractual arrangements with other entities toensure they are aligned with the new classifications under AASB 11.
AASB 12 Disclosure of Interests in Other Entities
AASB 12 Disclosure of Interests in Other Entities prescribes the disclosure requirements for an entity’s
interests in subsidiaries, associates and joint arrangements; and extends to the entity’s association
with unconsolidated structured entities.
Beechworth Health Service has disclosed information about its interests in associates and joint operations, including any significants judgement and assumptions used in determining the type of
joint arrangement in which it has an interest.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
AASB 2015-7 Amendments to Australian Accounting Standards
The Australian Accounting Standards Board issued an amending accounting standard AASB 2015-7
Amendments to Australian Accounting Standards - Fair Value disclosures of Not-for-Profit Public Sector
Entities on 13 July 2015. In accordance with FRD 7A Early adoption of authoritative accounting
pronouncements, the Minister for Finance has approved the option for Victorian not-for-profit public
sector entities to early adopt the amending accounting standard to enable them to benefit from some
limited exemption in relation to fair value disclosures for the 2014-15 reporting period. The limited
exemption is available to those entities whose assetsare held primarily for their current service potential
rather than to generate net cash inflows.
Beechworth Health Service meets the criteria specified in AASB 2015-7 to benefit from the reduced
disclosure requirements, so it has chosen to early adopt the amendments to Fair Value disclosure of
Not-for- profit-public sector entities.
(g) Income from transactions
Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that
it is probable that the economic benefits will flow to Beechworth Health Service and the income can
be reliably measured at fair value. Unearned income at reporting date is reported as income received
in advance .
Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.
Government Grants and other transfers of income (other than contributions by owners)
In accordance with AASB 1004 Contributions , government grants and other transfers of income
(other than contributions by owners) are recognised as income when the Health Service gains
control of the underlying assets irrespective of whether conditions are imposed on the Health Service’s
use of the contributions.
Contributions are deferred as income in advance when the health service has a present obligation to
repay them and the present obligation can be reliably measured.
Indirect Contributions from the Department of Health and Human Services
• Insurance is recognised as revenue following advice from the Department of Health and Human
Services.
• Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in
line with the arrangements set out in the Metropolitan Health and Aged Care Services Division
Hospital Circular 05/2013 (update for 2013-14).
Patient and Resident Fees
Patient fees are recognised as revenue at the time invoices are raised.
Donations and Other Bequests
Donations and bequests are recognised as revenue when received. If donations are for a special
purpose, they may be appropriated to a surplus, such as the specific restricted purpose surplus.
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes in account the effective
yield of the financial asset, which allocates iterest over the relevant period.
Sale of Investments
The gain/losson the sale of investments is reecognised when the investment is realised.
Fair value of assets and services received free of charge or for nominal
consideration
Resources provided or received free of charge or for nominal consideration are recognised at their fair
value when the transferee obtains control over them, irrespective of whether restrictions or conditions
are imposed over the use of the contributions, unless received from another Health Service or agency
as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer
will be recognised at carrying value. Contributions in the form of services are only recognised when
a fair value can be reliably determined and the services would have been purchased if not donated.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Other income
Other income includes non-property rental, dividends, forgiveness of liabilities, and bad debt reversals.
(h) Expense Recognition
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee expenses
Employee expenses include:
• Wages and salaries;
• Annual leave;
• Sick leave;
• Long service leave; and
• Superannuation expenses which are reported differently depending upon whether employees are
members of defined benefit or defined contribution plans.
Defined contribution superannuation plans
In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense
is simply the employer contributions that are paid or payable in respect of employees who are members
of these plans during the reporting period. Contributions to defined contribution superannuation plans
are expensed when incurred.
Defined benefit superannuation 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 of the services of current Health Service staff during the reporting period.
Superannuation contributions are made to the plans based on the relevant rules of each plan, and are
based upon actuarial advice.
Employees of the Beechworth Health Service are entitled to receive superannuation benefits and the
Beechworth Health Service contributes to both the defined benefit and defined contribution plans.
The defined benefit 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
Beechworth Health Service are disclosed in Note 13: Superannuation.
Depreciation
All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that
have finite useful lives are depreciated (i.e. excludes land assets held for sale, and investment
properties). Depreciation begins when the asset is available for use, which is when it is in the
location and condition necessary for it to be capable of operating in a manner intended by management.
Intangible produced assets with finite lives are depreciated as an expense from transactions on a
systematic basis over the asset’s useful life. Depreciation is generally calculated on a straight line
basis, at a rate that allocates the asset value, less any estimated residual value over its estimated
useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed
at least annually, and adjustments made where appropriate. This depreciation charge is not funded
by the Department of Health and Human Services. Assets with a cost in excess of $1,000 are
capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or
valuation over their estimated useful lives.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
The following table indicates the expected useful lives of non current assets on which the
depreciation charges are based.
2015 2014
Buildings
- Structure Shell Building Fabric Up to 41 years Up to 40 years
- Site Engineering Services & Central Plant 10 to 31 years 22 to 37 years
Central Plant
- Fit Out 10 to 16 years 20 to 25 years
- Trunk Reticulated Building Systems 10 to 21 years 20 to 25 years
Plant & Equipment Up to 12 years Up to 10 years
Medical Equipment Up to 20 years Up to 10 years
Computers & Communications Up to 8 years Up to 5 years
Furniture & Fittings Up to 20 years Up to 10 years
Motor Vehicles Up to 8 years Up to 5 years
Please note: the estimated useful lives, residual values and depreciation method are reviewed at the
end of each annual reporting period, and adjustments made where appropriate.
As part of the buildings valuation, building values were separated into components and each
component assessed for its useful life which is represented above.
Other operating expenses
Other operating expenses generally represent the day-to-day running costs incurred in normal
operations and include:
Supplies and consumables
Supplies and services costs which are recognised as an expense in the reporting period in which
they are incurred. The carrying amounts of any inventories held for distribution are expensed when
distributed.
Bad and doubtful debts
Refer to Note 1(k) Impairment of financial assets.
Fair value of assets, services and resources provided free of charge or for
nominal consideration
Contributions of resources provided free of charge or for nominal consideration are recognised at
their fair value when the transferee obtains control over them, irrespective of whether restrictions
or conditions are imposed over the use of the contributions, unless received from another agency
as a consequence of a restructuring of administrative arrangements. In the latter case, such a
transfer will be recognised at its carrying value. Contributions in the form of services are only
recognised when a fair value can be reliably determined and the services would have been
purchased if not donated.
(i) Other comprehensive income
Other comprehensive income measures the change in volume or value of assets or liabilities that do
not result from transactions.
Net gain/(loss) on non-financial assets
Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and
losses as follows:
Revaluation gains/(losses) of non-financial physical assets
Refer to Note 1(k) Revaluations of non-financial physical assets.
Net gain/(loss) on disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and
the difference between the proceeds and the carrying value of the asset at that time.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Net gain/(loss) on financial instruments
Net gain/(loss) on financial instruments includes:
• realised and unrealised gains and losses from revaluations of financial instruments at fair value;
• impairment and reversal of impairment for financial instruments at amortised cost
(refer to Note 1 (k)); and
• disposals of financial assets and derecognition of financial liabilities
Revaluations of financial instrument at fair value
Refer to Note 1(j) Financial instruments.
Share of net profits/(losses) of associates and joint entities, excluding dividends.
Refer to Note 1(d) Basis of consolidation .
Other gains/(losses) from other comprehensive income
Other gains/(losses) include:
• the revaluation of the present value of the long service leave liability due to changes in the
bond interest rates; and
• transfer of amounts from the reserves to accumulated surplus or net result due to disposal or
derecognition or reclassification.
(j) Financial Instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of one
entity and a financial liability or equity instrument of another entity. Due to the nature of the
Beechworth Health Service’s activities, certain financial assets and financial liabilities arise under
statute rather than a contract. Such financial assets and financial liabilities do not meet the
definition of financial instruments in AASB 132 Financial Instruments: Presentation . For example,
statutory receivables arising from taxes, fines and penalties do not meet the definition of financial
instruments as they do not arise under contract.
Where relevant, for note disclosure purposes, a distinction is made between those financial assets
and financial liabilities that meet the definition of financial instruments in accordance with AASB 132
and those that do not.
The following refers to financial instruments unless otherwise stated.
Categories of non-derivative financial instruments
Financial assets and liabilities at fair value through profit or loss
Financial assets are categorised as fair value through profit or loss at trade date if they are classified
as held for trading or designated as such upon initial recognition. Financial instrument assets are
designated at fair value through profit or loss on the basis that the financial assets form part of a
group of financial assets that are managed by the entity concerned based on their fair values, and
have their performance evaluated in accordance with documented risk management and investment
strategies.
Financial instruments at fair value through profit or loss are initially measured at fair value and
attributable transaction costs are expensed as incurred. Subsequently, any changes in fair value are
recognised in the net result as other comprehensive income. Any dividend or interest on a financial
asset is recognised in the net result for the year.
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments that are
not quoted on an active market. These assets are initially recognised at fair value plus any directly
attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured
at amortised cost using the effective interest method, less any impairment.
Loans and receivables category includes cash and deposits (refer to Note 1(k)), term deposits with
maturity greater than three months, trade receivables, loans and other receivables, but not statutory
receivables.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Financial liabilities at amortised cost
Financial instrument liabilities are initially recognised on the date they are originated. They are
initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial
recognition, these financial instruments are measured at amortised cost with any difference between
the initial recognised amount and the redemption value being recognised in profit and loss over the
period of the interest-bearing liability, using the effective interest rate method.
Financial instrument liabilities measured at amortised cost include all of the Health Service’s
contractual payables, deposits held and advances received, and interest-bearing arrangements
other than those designated at fair value through profit or loss.
(k) Assets
Cash and Cash Equivalents
Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank,
deposits at call and highly liquid investments with an original maturity of three months or less, which are
held for the purpose of meeting short term cash commitments rather than for investment purposes,
which are readily convertible to known amounts of cash and are subject to insignificant risk of
changes in value.
For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts,
which are included as liabilities on the balance sheet.
Receivables
Receivables consist of:
• Contractual receivables, which includes mainly debtors in relation to goods and services, loans to
third parties, accrued investment income, and finance lease receivables: and
• Statutory receivables, which includes predominantly amounts owing from the Victorian
Government and Goods and Services Tax ("GST") input tax credits recoverable.
Receivables that are contractual are classified as financial instruments and categorised as loans and
receivables. Statutory receivables are recognised and measured similarly to contractual receivables
(except for impairment), but are not classified as financial instruments because they do not arise from
a contract.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, using
the effective interest method, less any accumulated impairment.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the
date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are
known to be uncollectible are written off. A provision for doubtful debts is recognised when there is
objective evidence that an impairment loss has occurred. Bad debts are written off when identified.
Investments and Other Financial Assets
Investments are recognised and derecognised on trade date where purchase or sale of an investment
is under a contract whose terms require delivery of the investment within the timeframe established
by the market concerned, and are initially measured at fair value, net of transaction costs.
Investments are classified in the following categories:
• Loans and receivables.
The Beechworth Health Service classifies its other financial assets between current and non-current
assets based on the purpose for which the assets were acquired. Management determines the
classification of its other financial assets at initial recognition.
Beechworth Health Service assesses at each balance sheet date whether a financial
asset or group of financial assets is impaired.
All financial assets, except those measured at fair value through profit and loss are subject to annual
review for impairment.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Inventories
Inventories include goods and other property held either for sale, consumption or for distribution at
no or nominal cost in the ordinary course of business operations. It includes land held for sale and
excludes depreciable assets.
Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All
other inventories, including land held for sale, are measured at the lower of cost and net realisable
value.
Inventories acquired for no cost or nominal considerations are measured at current replacement cost
at the date of acquisition.
The bases used in assessing loss of service potential for inventories held for distribution include
current replacement cost and technical or functional obsolescence. Technical obsolescence occurs
when an item still functions for some or all of the tasks it was originally acquired to do, but no longer
matches existing technologies. Functional obsolescence occurs when an item no longer functions the
way it did when it was first acquired.
Property, Plant and Equipment
All non-current physical assets are measured initially at cost and subsequently revalued at fair value
less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost,
the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery
of government are transferred at their carrying amount.
More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 9 Property, plant and equipment.
The initial cost for non-financial physical assets under finance lease is measured at amounts equal to
the fair value of the leased asset or, if lower, the present value of the minimum lease payments,
each determined at the inception of the lease.
Crown Land is measured at fair value with regard to the property’s highest and best use after due
consideration is made for any legal or constructive restrictions imposed on the asset, public
announcements or commitments made in relation to the intended use of the asset. Theoretical
opportunities that may be available in relation to the asset(s) are not taken into account until it is
virtually certain that any restrictionswill no longer apply. Therefore, unless otherwise disclosed, the
current use of these non-financial physical assets will be their highest and best uses.
Land and Buildings are recognised initially at cost and subsequently measured at fair value less
accumulated depreciation and impairment.
Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair
value less accumulated depreciation and impairment. Depreciated historical cost is generally a
reasonable proxy for fair value because of the short lives of the assets concerned.
Revaluations of non-current Physical Assets
Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103F
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 FRDs. 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 as an expense in net result, the increment is recognised as income in the net
result.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Revaluation decrements are recognised in 'other comprehensive income' to the extent that a credit
balance exists in the asset revaluation surplus in respect of the same class of property, plant and
equipment.
Revaluation increases and revaluation decreases relating to individual assets within an asset class are
offset against one another within that class but are not offset in respect of assets in different classes.
Revaluation surplus is not transferred to accumulated funds on derecognition of the relevant asset.
In accordance with FRD 103F, Beechworth Health Service’s non-current physical assets were
assessed to determine whether revaluation of the non-current physical assets was required.
Investment Properties
Investment properties represent properties held to earn rentals or for capital appreciation or both.
Investment properties exclude properties held to meet service delivery objectives of the health service.
Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition
are capitalised when it is probable that future economic benefits in excess of the originally assessed
performance of the asset will flow to the Health Service.
Subsequent to initial recognition at cost, investment properties are revalued to fair value, determined
annually by independent valuers. Fair values are determined based on a market comparable approach
that reflects recent transaction prices for similar properties. Changes in the fair value are recognised
as income or expenses in the period that they arise. Investment properties are neither depreciated nor
tested for impairment.
Rental revenue from the leasing of investment properties is recognised in the comprehensive operating
statement in the periods in which it is receivable on a straight line basis over the lease term.
Prepayments
Other non-financial assets include prepayments which represent payments in advance of receipt of
goods or services or that part of expenditure made in one accounting period covering a term
extending beyond that period.
Disposal of Non-Financial Assets
Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating
statement. Refer to note 1(i) - 'comprehensive income'.
Impairment of Non-Financial Assets
All other non-financial assets are assessed annually for indications of impairment, except for
• inventories; and
• investment properties that are measured at fair value.
If there is an indication of impairment, the assets concerned are tested as to whether their carrying
value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its
recoverable amount, the difference is written-off as an expense except to the extent that the
write-down can be debited to an asset revaluation surplus amount applicable to that same class of
asset.
If there is an indication that there has been a 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 inflows
is measured at the higher of the present value of future cash flows expected to be obtained from the
asset and fair value less costs to sell.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Investments in joint operations
In respect of any interest in joint operations, Beechworth Health Service recognises in the financial
statements: • its assets, including its share of any assets held jointly;
• any liabilities including its share of liabilities that it had incurred;
• its revenue from the sale of its share of the output from the joint operation;
• its share of the revenue from the sale of the output by the operation; and
• its expenses, including its share of any expenses incurred jointly.
Details of the joint operation are set out in note 8.
Impairment of Financial Assets
At the end of each reporting period Beechworth Health Service assesses whether there is objective
evidence that a financial asset or group of financial asset is impaired. All financial instruments assets,
except those measured at fair value through profit or loss, are subject to annual review for impairment.
Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as
written off and allowances for doubtful receivables are expensed. Bad debt written off by mutual
consent and the allowance for doubtful debts are classified as ‘other comprehensive income’ in the
net result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the
present value of estimated future cash flows, discounted at the effective interest rate.
Where the fair value of an investment in an equity instrument at balance date has reduced by
20 percent or more than its cost price or where its fair value has been less than its cost price for a
period of 12 or more months, the financial asset is treated as impaired.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial
instruments, professional judgement is applied in assessing materiality using estimates, averages and
other computational methods in accordance with AASB 136 Impairment of Assets.
Net Gain/(Loss) on Financial Instruments
Net gain/(loss) on financial instruments includes:
• impairment and reversal of impairment for financial instruments at amortised cost; and
• disposals of financial assets and derecognition of financial liabilities.
Revaluations of Financial Instruments at Fair Value
The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned
on financial assets.
(l) Liabilities
Payables
Payables consist of:
• contractual payables which consist predominantly of accounts payable representing liabilities for
goods and services provided to 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 those goods and services. The normal credit terms for accounts payable are
usually Nett 30 days.
• statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are initially recognised at fair value, and then subsequently carried at amortised
cost. Statutory payables are recognised and measured similarly to contractual payables, but are not
classified as financial instruments and not included in the category of financial liabilities at amortised
cost, because they do not arise from a contract.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
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 liability is the best estimate of the consideration required to settle the
present obligation at reporting date, taking into account the risks and uncertainties surrounding the
obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows, using a discount rate that
reflects the time value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received
from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will
be received and the amount of the receivable can be measured reliably.
Employee Benefits
This provision arises for benefits accruing to employees in respect of wages and salaries, annual
leave and long service leave for services rendered to the reporting date.
Wages and Salaries, Annual Leave and Accrued Days Off
Liabilities for wages and salaries, including non-monetary benefits, and annual leave are all recognised
in the provision for employee benefits as ‘current liabilities’, because the health service does not
have an unconditional right to defer settlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual
leave and sick leave are measured at:
• Undiscounted value – if the health service expects to wholly settle within 12 months; or
• Present value – if the health service does not expect to wholly settle within 12 months.
Long Service Leave (LSL)
The liability for LSL is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even
where the health service does not expect to settle the liability within 12 months because it will not
have the unconditional right to defer the settlement of the entitlement should an employee take
leave within 12 months.
The components of this current LSL liability are measured at:
• Undiscounted value – if the health service expects to wholly settle within 12 months; and
• Present value – if the health service does not expect to wholly settle within 12 months.
Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the
settlement of the entitlement until the employee has completed the requisite years of service.
This non-current LSL liability is measured at present value.
Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised
as a transaction, except to the extent that a gain or loss arises due to changes in bond interest
rates for which it is then recognised as an other economic flow.
Termination Benefits
Termination benefits are payable when employment is terminated before the normal retirement date
or when an employee decides to accept an offer of benefits in exchange for the termination of
employment.
The health service recognises termination benefits when it is demonstrably committed to either
terminating the employment of current employees according to a detailed formal plan without
possibility of withdrawal or providing termination benefits as a result of an offer made to encourage
voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting
period are discounted to present value.
Employee benefit On-Costs
Provisions for on-costs, such as workers compensation and superannuation are recognised
together with provisions for employee benefits.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Superannuation liabilities
The Beechworth 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.
(m) Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are
classified at their inception as either operating or finance leases based on the economic substance
of the agreement so as to reflect the risks and rewards incidental to ownership.
Leases of property, plant and equipment are classified as finance leases whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the lessee.
For service concession arrangements, the commencement of the lease term is deemed to be the date the asset is commissioned.
All other leases are classified as operating leases.
Finance Leases
Entity as lessor
The Health Service does not hold any finance lease arrangements with other parties.
Entity as lessee
The Health Service does not hold any finance lease arrangements with other parties.
Operating Leases
Entity as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the
comprehensive operating statement on a straight line basis over the lease term, except where
another systematic basis is more representative of the time pattern of the benefits derived from the
use of the leased asset. The leased asset is not recognised in the balance sheet.
(n) Equity
Contributed Capital
Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to
Wholly-Owned Public Sector Entities and FRD 119A Contributions by Owners, appropriations for
additions to the net asset base have been designated as contributed capital. Other transfers that are
in the nature of contributions or distributions that have been designated as contributed capital are
also treated as contributed capital.
Transfers of net assets arising from administrative restructurings are treated as contributions by
owners. Transfers of net liabilities arising from administrativere structures are to go through the
comprehensive operating statement.
Property, Plant & Equipment Revaluation Surplus
The asset revaluation surplus is used to record increments and decrements on the revaluation of
non-current physical assets.
(o) Commitments
Commitments for future expenditure include operating and capital commitments arising from contracts.
These commitments are disclosed by way of a note (refer to note 18) 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.
These future expenditures cease to be disclosed as commitments once the related liabilities are
recognised on the balance sheet.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
(p) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed
by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent
liabilities are presented inclusive of GST receivable or payable respectively.
(q) Goods and Services Tax ("GST")
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the taxation authority. In this case it is recognised as part of the
cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other
receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities which are recoverable from, or payable to the taxation authority, are
presented as an operating cash flow.
Commitments and contingent assets and liabilities are presented on a gross basis.
(r) AASs issued that are not yet effective
Certain new Australian accounting standards and interpretations have been published that are not
mandatory for the 30 June 2015 reporting period. DTF assesses the impact of all these new standards
and advises the Health Service of their applicability and early adoption where applicable.
As at 30 June 2015, the following standards and interpretations had been issued by the AASB but
were not yet effective. They become effective for the first financial statements for reporting periods
commencing after the stated operative dates as detailed in the table below. Beechworth Health
Service has not and does not intend to adopt these standards early.
Standard /
Interpretation
Summary Applicable for Annual
Reporting periods
beginning on
Impact on Health
Services Financial
Statements
AASB 9 Financial instruments The key changes include the
simplified requirements for the
classification and measurement of
financial assets, a new hedging
accounting model and a revised
impairment loss model to
recognise impairment losses
earlier, as opposed to the current
approach that recognises
impairment only when incurred.
1 January 2018 The assessment has identified
that the financial impact of
available for sale (AFS) assets
will now be reported through
other comprehensive income
(OCI) and no longer recycled to
the profit and loss.
While the preliminary
assessment has not identified
any material impact arising from
AASB 9, it will continue to be
monitored and assessed.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Standard /
Interpretation
Summary Applicable for Annual
Reporting periods
beginning on
Impact on Health
Services Financial
Statements
AASB 15 Revenue from
Contracts with Customers
The core principle of AASB 15
requires an entity to recognise
revenue when the entity satisfies a
performance obligation by
transferring a promised good or
service to a customer
1 January 2017
(Exposure Draft 263 – potential
deferral to 1 Jan 2018)
The changes in revenue
recognition requirements in
AASB 15 may result in changes
to the timing and amount of
revenue recorded in the
financial statements. The
Standard will also require
additional disclosures on
service revenue and contract
modifications.
A potential impact will be the
upfront recognition of revenue
from licenses that cover
multiple reporting periods.
Revenue that was deferred and
amortised over a period may
now need to be recognised
immediately as a transitional
adjustment against the opening
returned earnings if there are
no former performance
obligations outstanding.
AASB 2014‑1 Amendments to
Australian Accounting
Standards [Part E Financial
Instruments]
Amends various AASs to reflect
the AASB's decision to defer the
mandatory application date of
AASB 9 to annual reporting
periods beginning on or after 1
January 2018 as a consequence
of Chapter 6 Hedge Accounting,
and to amend reduced disclosure
requirements.
1 January 2018 This amending standard will
defer the application period of
AASB 9 to the 2018-19
reporting period in accordance
with the transition requirements.
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BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Standard /
Interpretation
Summary Applicable for Annual
Reporting periods
beginning on
Impact on Health
Services Financial
Statements
AASB 2014‑4 Amendments to
Australian Accounting
Standards – Clarification of
Acceptable Methods of
Depreciation and Amortisation
[AASB 116 & AASB 138]
Amends AASB 116 Property, Plant
and Equipment and AASB 138
Intangible Assets to:
• establish the principle for the
basis of depreciation and
amortisation as being the
expected pattern of consumption
of the future economic benefits of
an asset;
• prohibit the use of revenue
based methods to calculate the
depreciation or amortisation of an
asset, tangible or intangible,
because revenue generally
reflects the pattern of economic
benefits that are generated from
operating the business, rather than
the consumption through the use
of the asset.
1 January 2016 The assessment has indicated
that there is no expected impact
as the revenue-based method
is not used for depreciation and
amortisation.
AASB 2014‑9 Amendments to
Australian Accounting
Standards – Equity Method in
Separate Financial Statements
[AASB 1, 127 & 128]
Amends AASB 127 Separate
Financial Statements to allow
entities to use the equity method
of accounting for investments in
subsidiaries, joint ventures and
associates in their separate
financial statements.
1 January 2016 The assessment indicates that
there is no expected impact as
the entity will continue to
account for the investments in
subsidiaries, joint ventures and
associates using the cost
method as mandated if
separate financial statements
are presented in accordance
with FRD 113A.
AASB 2014‑10 Amendments to
Australian Accounting
Standards – Sale or
Contribution of Assets between
an Investor and its Associate or
Joint Venture [AASB 10 &
AASB 128]
AASB 2014-10 amends AASB 10
Consolidated Financial Statements
and AASB 128 Investments in
Associates to ensure consistent
treatment in dealing with the sale
or contribution of assets between
an investor and its associate or
joint venture. The amendments
require that:
• a full gain or loss to be
recognised by the investor when a
transaction involves a business
(whether it is housed in a
subsidiary or not); and
• a partial gain or loss to be
recognised by the parent when a
transaction involves assets that do
not constitute a business, even if
these assets are housed in a
subsidiary.
1 January 2016 The assessment has indicated
that there is limited impact, as
the revisions to AASB 10 and
AASB 128 are guidance in
nature.
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30 June 2015
BEECHWORTH HEALTH SERVICE
Notes to the financial statements
Standard /
Interpretation
Summary Applicable for Annual
Reporting periods
beginning on
Impact on Health
Services Financial
Statements
AASB 2015‑6 Amendments to
Australian Accounting
Standards – Extending Related
Party Disclosures to Not-for-
Profit Public Sector Entities
[AASB 10, AASB 124 & AASB
1049]
The Amendments extend the
scope of AASB 124 Related Party
Disclosures to not-for-profit public
sector entities. A guidance has
been included to assist the
application of the Standard by not-
for-profit public sector entities.
1 July 2016 The amending standard will
result in extended disclosures
on the entity's key management
personnel (KMP), and the
related party transactions.
• AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).
• 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework,
Materiality and Financial Instruments
• AASB 2014 1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments
arising from AASB 14 Regulatory Deferral Accounts only] #
• AASB 2014 3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of
Interests in Joint Operations [AASB 1 & AASB 11]
• AASB 2014 5 Amendments to Australian Accounting Standards arising from AASB 15
• AASB 2014 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
• AASB 2014 8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
– Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]
• AASB 2015 2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments
to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]
• AASB 2015 3 Amendments to Australian Accounting Standards arising from the Withdrawal of
AASB 1031 Materiality
• AASB 2015 5 Amendments to Australian Accounting Standards – Investment Entities: Applying the
Consolidation Exception [AASB 10, AASB 12, AASB 128]
Page 26
30 June 2015
BEECHWORTH HEALTH SERVICE
Notes to the financial statements
(s) Category Groups
The Beechworth Health Service has used the following category groups for reporting
purposes for the current and previous financial years.
Admitted Patient Services (Admitted Patients) comprises all recurrent health
revenue/expenditure on admitted patient services, where services are delivered in
public hospitals.
Aged Care comprises revenue/expenditure from Home and Community Care (HACC)
programs including planned activity groups.
Primary Health comprises revenue/expenditure for Community Health Services
including health promotion, physiotherapy, podiatry and occupational therapy.
Residential Aged Care referred to in the past as psychogeriatric residential services,
comprises those Commonwealth-licensed residential aged care services in receipt of
supplementary funding from DH under the mental health program. It excludes all other
residential services funded under the mental health program, such as mental health-funded
community care units (CCUs) and secure extended care units (SECUs).
Other Services excluded from Australian Health Care Agreement (AHCA)
(Other) comprises revenue/expenditure for services not separately classified above.
Page 27
Note 2: Analysis of revenue by sourceAdmitted RAC incl. Aged Primary Other Total
Patients Mental Health Care Health
2015 2015 2015 2015 2015 2015
$ $ $ $ $ $
Government Grants 3,052,645 4,185,949 408,793 669,065 380,606 8,697,058
Indirect contributions by Department of Health and Human Services 1,888 7,120 240 2,895 (40,444) (28,301)
Patient and Resident Fees 382,148 1,090,875 29,373 95,150 - 1,597,546
Commercial Activities:
Catering and Laundry - - - - 83,477 83,477
Services provided to External Programs - - - - 1,826,517 1,826,517
Property Income - - - - 11,780 11,780
Other 6,480 8,244 955 24,505 75,312 115,496
Total Revenue from Operating Activities 3,443,161 5,292,188 439,361 791,615 2,337,248 12,303,573
Interest - - - - 203,460 203,460
Total Revenue from Non-Operating Activities - - - - 203,460 203,460
Capital Purpose Income - State Government Capital Grants - - - - 493,356 493,356
Capital Purpose Income - Other - - - - 78,310 78,310
Residential Accommodation Payments - - - - 142,260 142,260
Net Gain/(Loss) from Disposal of Non-Financial Assets (refer note 2a) - - - - (31,556) (31,556)
Total Capital Purpose Income - - - - 682,370 682,370
Total Revenue 3,443,161 5,292,188 439,361 791,615 3,223,078 13,189,403
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 28
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 2: Analysis of revenue by source (continued)Admitted RAC incl. Aged Primary Other Total
Patients Mental Health Care Health
Prior Year 2014 2014 2014 2014 2014 2014
$ $ $ $ $ $
Government Grants 3,201,099 3,935,619 444,676 643,017 312,350 8,536,761
Indirect contributions by Department of Health 1,700 6,736 224 2,743 (46,204) (34,801)
Patient and Resident Fees 355,225 1,010,908 33,380 94,475 1,493,988
Commercial Activities:
Catering and Laundry - - - - 102,693 102,693
Services provided to External Programs 1,326,403 1,326,403
Property Income 9,640 9,640
Other 628 2,596 851 11,642 503,504 519,221
Total Revenue from Operating Activities 3,558,652 4,955,859 479,131 751,877 2,208,386 11,953,905
Interest - - - - 170,235 170,235
Total Revenue from Non-Operating Activities - - - - 170,235 170,235
Capital Purpose Income - State Government Capital Grants - - - - 20,200 20,200
Residential Accommodation Payments - - - - 135,242 135,242
Net Gain/(Loss) from Disposal of Non-Financial Assets (refer note 2a) - - - - (2,248) (2,248)
Total Capital Purpose Income - - - - 153,194 153,194
Total Revenue 3,558,652 4,955,859 479,131 751,877 2,531,815 12,277,334
Indirect contributions by Department of Health (1 July 2014 - 31 Dec 2014) / Department of Health and Human Services (1 Jan 2015 - 30 June 2015)
Department of Health / Department of Health and Human Services makes certain payments on behalf of the Health Service (List).
These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.
page 29
2015 2014
$ $
Proceeds from Disposals of Non-Current Assets
- Motor Vehicles 9,545 -
Total Proceeds from Disposal of Non-Current Assets 9,545 -
Less: Written Down Value of Non-Current Assets Sold
- Plant and Equipment 30,135 16
- Medical Equipment 730 2,107
- Computers 9,136 -
- Furniture and Fittings 1,100 125
Total Written Down Value of Non-Current Assets Sold 41,101 2,248
Net gains/(losses) on Disposal of Non-Financial Assets (31,556) (2,248)
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 2a: Net gain/(loss) on disposal of non-financial assets
page 30
Note 3: Analysis of expenses by sourceAdmitted RAC Aged Primary Other Total
Patients Care Health
2015 2015 2015 2015 2015 2015
$ $ $ $ $ $
Employee Expenses 2,055,930 5,276,973 476,901 641,549 911,386 9,362,739
Non Salary Labour Costs 218,161 76,040 5,163 25,813 47,136 372,313
Supplies & Consumables 234,196 293,471 29,399 23,251 137,017 717,334
Other Expenses from Continuing Operations
- Domestic Services 33,095 134,113 5,349 4,271 61,620 238,448
- Fuel, Light, Power and Water 32,439 105,038 11,221 10,233 72,017 230,948
- Repairs & Maintenance 68,532 165,116 10,836 17,466 87,892 349,842
- Administrative Expenses 172,671 482,305 72,211 73,900 322,423 1,123,510
Total Expenditure from Operating Activities 2,815,024 6,533,056 611,080 796,483 1,639,491 12,395,134
Expenditure for Capital Purposes - - - - 53,884 53,884
Depreciation and Amortisation (refer note 4) - - - - 849,664 849,664
Total Other Expenses - - - - 903,548 903,548
Total Expenses 2,815,024 6,533,056 611,080 796,483 2,543,039 13,298,682
Admitted RAC Aged Primary Other Total
Patients Care Health
2014 2014 2014 2014 2014 2014
$ $ $ $ $ $
Employee Expenses 2,121,773 5,148,305 530,698 698,284 737,264 9,236,324
Non Salary Labour Costs 203,727 84,368 5,853 26,559 39,353 359,860
Supplies & Consumables 168,574 302,565 28,019 17,206 110,252 626,616
Other Expenses from Continuing Operations
- Domestic Services 31,545 135,537 4,982 3,715 57,764 233,543
- Fuel, Light, Power and Water 41,615 136,925 14,223 13,110 84,313 290,186
- Repairs & Maintenance 57,290 167,807 10,154 14,203 79,274 328,728
- Administrative Expenses 201,488 472,107 70,631 78,662 401,802 1,224,690
Total Expenditure from Operating Activities 2,826,012 6,447,614 664,560 851,739 1,510,022 12,299,947
Expenditure for Capital Purposes - - - - 30,290 30,290
Depreciation and Amortisation (refer note 4) - - - - 1,092,452 1,092,452
Finance Costs - - - - - -
Total Other Expenses - - - - 1,122,742 1,122,742
Total Expenses 2,826,012 6,447,614 664,560 851,739 2,632,764 13,422,689
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 31
2015 2014 2015 2014
$ $ $ $
Commercial Activities
Catering and Laundry - 125,198 83,477 102,693
Services provided to External Programs 1,536,128 1,488,479 1,826,517 1,326,403
Property 1,866 2,689 11,780 29,640
1,537,994 1,616,366 1,921,774 1,458,736
2015 2014
$ $
Depreciation
Buildings 676,816 894,344
Plant & Equipment 44,111 50,207
Medical Equipment 45,443 57,530
Computers and Communication 13,827 22,793
Furniture and Fittings 15,733 22,670
Motor Vehicles 53,734 44,908
Total Depreciation 849,664 1,092,452
2015 2014
$ $
Cash on Hand 1,950 1,800
Cash at Bank 1,767,354 604,133
Deposits at Call 4,500,000 2,850,000
Total Cash and Cash Equivalents 6,269,304 3,455,933
Represented by:
Cash for Health Service Operations 864,731 332,695
Cash for Monies Held in Trust
- Cash on Hand 900 900
- Cash at Bank 903,673 272,338
- Deposits at Call 4,500,000 2,850,000
Note 14 5,404,573 3,123,238
Total Cash and Cash Equivalents 6,269,304 3,455,933
In accordance with Standing Direction 4.5.6, the Health Service is required to invest surplus funds with
TCV/VFMC. At 30 June 2015, the Health Service is compliant with this Standing Direction.
Revenue
Note 5: Cash and cash equivalents
For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and
short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant
risk of change in value, net of outstanding bank overdrafts.
BEECHWORTH HEALTH SERVICE
Note 4: Depreciation and amortisation
Notes to the financial statements 30 June 2015
Expense
Note 3a: Analysis of expenses and revenue by internally managed funds
page 32
2015 2014
$ $
CURRENT
Contractual
Trade Debtors 91,643 89,224
Patient Fees 340,663 427,712
Accrued Income 58,858 9,974
Accrued Revenue - Department of Health - 114,148
Less Allowance for Doubtful Debts
Patient Fees (1,190) (6,611)
489,974 634,447
Statutory
GST Receivable 52,506 52,947
52,506 52,947
TOTAL CURRENT RECEIVABLES 542,480 687,394
NON CURRENT
Statutory
Long Service Leave - Department of Health and Human Services 141,149 181,593
TOTAL NON CURRENT RECEIVABLES 141,149 181,593
TOTAL RECEIVABLES 683,629 868,987
(a) Movement in Allowance for doubtful contractual receivables
2015 2014
$ $
Balance at beginning of year 6,611 6,611
Amounts written off during the year 3,170 2,763
Amounts recovered during the year (4,751) (4,751)
Increase/(decrease) in allowance recognised in net result (3,840) 1,988
Balance at end of year 1,190 6,611
(b) Ageing analysis of receivables
Please refer to note17(c) for the ageing analysis of receivables
(c) Nature and extent of risk arising from receivables
Please refer to note17(c) for the nature and extent of credit risk arising from receivables
2015 2014
$ $
Pharmaceuticals - at cost 17,092 35,467
Catering Supplies - at cost 7,142 7,142
Housekeeping Supplies - at cost 8,363 8,363
Medical and Surgical Lines - at cost 9,578 12,552
Engineering Stores - at cost 6,438 5,439
Administration Stores - at cost 2,515 1,568
Other - Physiotherapy, Podiatry - at cost 46,394 44,301
TOTAL INVENTORIES 97,522 114,832
BEECHWORTH HEALTH SERVICE
Note 6: Receivables
Notes to the financial statements 30 June 2015
Note 7: Inventories
page 33
Name of Entity Principal Activity 2015 2014
% %
Hume Rural Health Alliance Information Systems 4.52 4.71
Beechworth Health Service's interest in assets employed in the above jointly controlled
operations and assets is detailed below. The amounts are included in the financial
statements and consolidated financial statements under their respective asset categories:
2015 2014
$ $
Summarised Balance Sheet:
Current Assets
Cash and Cash Equivalents 18,611 12,039
Other 91,643 89,224
Total Current Assets 110,254 101,263
Non Current Assets
Property, Plant and Equipment 29,534 18,215
Other - -
Total Non Current Assets 29,534 18,215
Total Assets 139,788 119,478
Current Liabilities
Payables 40,427 26,050
Total Current Liabilities 40,427 26,050
Net Assets 99,361 93,428
Share of Joint Operation's Net Assets 99,361 93,428
Summarised Operating Statement
Income from transactions 405,259 300,469
Expenses from transactions (394,743) (284,815)
Net Result 10,516 15,654
The 2015 amounts disclosed above are based on the unaudited financial statements of the
Hume Rural Health Alliance.
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Ownerhip Interest
Note 8: Joint operations accounted for using the proportional method
page 34
(a) Gross carrying amount and accumulated depreciation
2015 2014
$ $
Land
- Crown Land - other at fair value 541,000 541,000
- Freehold Land - other at fair value 595,000 595,000
Total Land 1,136,000 1,136,000
Buildings
- Buildings at valuation 22,379,000 22,379,000
Less Accumulated Depreciation 676,816 -
Total Buildings 21,702,184 22,379,000
Plant and Equipment
- Plant and Equipment at fair value 591,519 692,751
Less Accumulated Depreciation 368,226 428,701
Total Plant and Equipment 223,293 264,050
Medical Equipment
- Medical Equipment at fair value 860,542 862,270
Less Accumulated Depreciation 656,701 659,168
Total Medical Equipment 203,841 203,102
Computers and Communication
- Computers and Communication at fair value 170,953 427,261
Less Accumulated Depreciation 159,158 404,595
Total Computers and Communication 11,795 22,666
Furniture and Fittings
- Furniture and Fittings at fair value 152,369 239,515
Less Accumulated Depreciation 132,623 202,935
Total Furniture and Fittings 19,746 36,580
Motor Vehicles
- Motor Vehicles at fair value 694,910 679,407
Less Accumulated Depreciation 527,123 536,420
Total Motor Vehicles 167,787 142,987
TOTAL 23,464,646 24,184,385
BEECHWORTH HEALTH SERVICE
Note 9: Property, Plant & Equipment
Notes to the financial statements 30 June 2015
page 35
(b) Reconciliations of the carrying amounts of each class of asset at the beginning and end of the previous and current financial year is set out below.
Land Buildings Plant & Medical Computers & Furniture & Motor Total
Equipment Equipment Communications Fittings Vehicles
$ $ $ $ $ $ $ $
Balance as at 1 July 2013 1,440,000 18,564,357 284,025 239,685 45,459 59,375 187,895 20,820,796
Additions - 18,500 30,248 23,054 - - - 71,802
Disposals - - (16) (2,107) - (125) - (2,248)
Revaluation increments/(decrements) (304,000) 4,690,487 - - - - - 4,386,487
Depreciation and Amortisation (note 4) - (894,344) (50,207) (57,530) (22,793) (22,670) (44,908) (1,092,452)
Balance at 30 June 2014 1,136,000 22,379,000 264,050 203,102 22,666 36,580 142,987 24,184,385
Additions - - 22,028 18,212 - - 52,476 92,716
Disposals - - (30,134) (729) (9,135) (1,101) - (41,099)
Assets found at no cost - - 11,460 28,699 12,091 - 26,058 78,308
Depreciation and Amortisation (note 4) - (676,816) (44,111) (45,443) (13,827) (15,733) (53,734) (849,664)
Balance at 30 June 2015 1,136,000 21,702,184 223,293 203,841 11,795 19,746 167,787 23,464,646
Land and buildings carried at valuation
An independent valuation of Beechworth Health Service's property, plant and equipment was performed by the Valuer-General Victoria to determine the fair value of the
land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged
between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments.
The effective date of the valuation is 30 June 2014
Plant and Equipment
The value of plant and equipment was considered in accordance with FRD103F.
Note 9: Property, Plant & Equipment (continued)
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 36
(c) Fair value measurement hierarchy for assets as at 30 June 2015
Carrying
amount as at
30 June 2015 Level 1 Level 2 Level 3
$ $ $ $
Land at fair value
Specialised land
- Crown Land - other at fair value 541,000 - - 541,000
- Freehold Land - other at fair value 595,000 - - 595,000
Total of land at fair value 1,136,000 - - 1,136,000
Buildings at fair value 21,702,184 - - 21,702,184
Plant and equipment at fair value 223,293 - - 223,293
Medical equipment at fair value 203,841 - - 203,841
Computers and communications equipment at fair value 11,795 - - 11,795
Furniture and fittings at fair value 19,746 - - 19,746
Vehicles at fair value 167,787 - - 167,787
TOTAL 23,464,646 - - 23,464,646
Carrying
amount as at
30 June 2014 Level 1 Level 2 Level 3
$ $ $ $
Land at fair value
Specialised land
- Crown Land - other at fair value 541,000 - - 541,000
- Freehold Land - other at fair value 595,000 - - 595,000
Total of land at fair value 1,136,000 - - 1,136,000
Buildings at fair value 22,379,000 - - 22,379,000
Plant and equipment at fair value 264,050 - - 264,050
Medical equipment at fair value 203,102 - - 203,102
Computers and communications equipment at fair value 22,666 - - 22,666
Furniture and fittings at fair value 36,580 - - 36,580
Vehicles at fair value 142,987 - - 142,987
TOTAL 24,184,385 - - 24,184,385
Specialised land and specialised buildingsThe market approach is also used for specialised land and specialised buildings although is adjusted for the community
service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant,
unobservable adjustments; therefore these assets are classified as Level 3 under the market based direct comparison approach.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the
extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration
required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible
and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be
classified as Level 3 assets.
For the health services, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting
for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature,
specialised buildings are classified as Level 3 for fair value measurements.
An independent valuation of the Health Service’s specialised land and specialised buildings was performed by the
Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the
valuation is 30 June 2014.
VehiclesThe Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process
of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates during
use to reflect the consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from the carrying
value (depreciated cost).
Plant and equipmentPlant and equipment is held at carrying value (depreciated cost). When plant and equipment is specialised in use, such that it
is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless
there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is
considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.
There were no changes in valuation techniques throughout the period to 30 June 2015.
For all assets measured at fair value, the current use is considered the highest and best use.
Fair value measurement at end of
reporting period using:
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 9: Property, Plant & Equipment (continued)
Fair value measurement at end of
reporting period using:
page 37
(d) Reconciliations of Level 3 fair value
Land Buildings Plant & Medical Computers & Furniture & Motor Total
Equipment Equipment Communications Fittings Vehicles
$ $ $ $ $ $ $ $
Balance as at 1 July 2013 1,440,000 18,564,357 284,025 239,685 45,459 59,375 187,895 20,820,796
Purchases (sales) - 18,500 30,232 20,947 - (125) - 69,554
Transfers in (out) of Level 3 - - - - - - - -
Gains or losses recognised in net result
- Depreciation - (894,344) (50,207) (57,530) (22,793) (22,670) (44,908) (1,092,452)
Sub Total 1,440,000 17,688,513 264,050 203,102 22,666 36,580 142,987 19,797,898
Unrealised gains/losses on non-financial assets (304,000) 4,690,487 - - - - - 4,386,487
Balance at 30 June 2014 1,136,000 22,379,000 264,050 203,102 22,666 36,580 142,987 24,184,385
Purchases (sales) - - 3,354 46,182 2,956 (1,101) 78,534 129,925
Transfers in (out) of Level 3 - - - - - - -
Gains or losses recognised in net result
- Depreciation - (676,816) (44,111) (45,443) (13,827) (15,733) (53,734) (849,664)
Sub Total 1,136,000 21,702,184 223,293 203,841 11,795 19,746 167,787 23,464,646
Unrealised gains/losses on non-financial assets - - - - - - - -
Balance at 30 June 2015 1,136,000 21,702,184 223,293 203,841 11,795 19,746 167,787 23,464,646
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 9: Property, Plant & Equipment (continued)
page 38
Note 9: Property, plant & equipment (continued)
(e) Description of significant unobservable inputs to Level 3 valuations:
Specialised land Market approach
Community Service Obligation (CSO)
adjustment
Specialised buildings Depreciated replacement cost Direct cost per square metre
Useful life of specialised buildings
Plant and equipment at fair value Depreciated replacement cost Cost per unit
Useful life of PPE
Vehicles Depreciated replacement cost Cost per unit
Useful life of vehicles
Medical equipment at fair value Depreciated replacement cost Cost per unit
Useful life of medical equipment
Computers Depreciated replacement cost Cost per unit
Useful life of computers
Furniture and Fittings Depreciated replacement cost Cost per unit
Useful life of furniture and fittings
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Valuation technique (i)
Significant unobservable inputs (i)
page 39
(a) Movements in carrying value for investment property as at 30 June 2015
2015 2014
$ $
Balance at Beginning of Period 265,000 245,000
Additions - -
Disposals and Property Held for Sale - -
Net Gain/(Loss) from Fair Value Adjustments - 20,000
Balance at End of Period 265,000 265,000
(b) Fair value measurement hierarchy for investment property as at 30 June 2015
Carrying
amount as at
30 June 2015 Level 1 Level 2 Level 3
$ $ $ $
Investment property 265,000 - 265,000 -
TOTAL 265,000 - 265,000 -
There have been no transfers between levels during the period. There were no changes in valuation
techniques throughout the period to 30 June 2014.
For investment properties measured at fair value, the current use of the asset is considered the
highest and best use.
The fair value of the Health Service’s investment properties at 30 June 2014 have been arrived on
the basis of an independent valuation carried out by the Valuer General - Victoria. The valuation
was determined by reference to market evidence of transaction process for similar properties with no
significant unobservable adjustments, in the same location and condition and subject to similar
lease and other contracts.
2015 2014
$ $
CURRENT
Contractual
Trade Creditors 172,439 256,337
Accrued Expenses 55,924 20,706
228,363 277,043
Statutory
GST Payable 39,816 42,001
TOTAL CURRENT 268,179 319,044
(a) Maturity analysis of payables
Please refer to Note 17(d) for the ageing analysis of payables
(b) Nature and extent of risk arising from
Please refer to Note 17(d) for the nature and extent of risks arising from payables
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 11: Payables
Note 10: Investment Properties
Fair value measurement at end of
reporting period using:
page 40
2015 2014
$ $
Current Provisions
Employee Benefits
Annual Leave
- unconditional and expected to be settled within 12 months 605,612 592,230
- unconditional and expected to be settled after 12 months 112,626 126,488
Long Service Leave
- unconditional and expected to be settled within 12 months 180,000 200,000
- unconditional and expected to be settled after 12 months 637,603 597,641
Other Employee Benefits (i)
- unconditional and expected to be settled within 12 months 64,538 303,893
1,600,379 1,820,252
Provisions related to employee benefit on-costs
- unconditional and expected to be settled within 12 months 103,947 130,885
- unconditional and expected to be settled after 12 months 80,797 109,487
184,744 240,372
Total Current Provisions 1,785,123 2,060,624
Non-Current Provisions
Employee Benefits 238,184 210,021
Provisions related to EmployeeBenefit On-Costs 48,632 52,089
Total Non-Current Provisions 286,816 262,110
Total Provisions 2,071,939 2,322,734
(a) Employee Benefits and Related On-Costs
Current Employee Benefits and related on-costs
Unconditional Long Service Leave Entitlement 917,624 924,145
Annual Leave Entitlements 796,526 801,011
Accrued Wages and Salaries 47,092 309,992
Accrued Days Off 18,097 20,314
48/52 Leave Entitlements 1,247 2,301
Time in Lieu 4,537 2,861
Non-Current Employee Benefits and related on-costs
Conditional Long Service Leave Entitlement 286,816 262,110
Total Employee Benefits and Related On-Costs 2,071,939 2,322,734
(b) Movements in Provisions
Movement in Long Service Leave:
Balance at start of year 1,186,256 1,179,018
Provision made during the year
- Revaluations 12,109 2,849
- Expense recognising employee service 159,211 205,657
Settlement made during the year (153,136) (201,268)
Balance at end of year 1,204,440 1,186,256
(i) Other Employee Benefits include accrued wages, accrued days off, 48/52 leave and time in lieu.
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 12: Provisions
page 41
Employees of the Health Service are entitled to receive superannuation benefits and the
Health Services contributes to both defined benefit and defined contribution plans. The
defined benefit plan(s) provides benefits based on years of service and final average salary.
The Health Service does not recognise any defined benefit liability in respect of the plan(s)
because the entity has no legal or constructive obligation to pay future benefits relating to
its employees; its only obligation is to pay superannuation contributions as they fall due.
The Department of Treasury and Finance discloses the State’s defined benefits liabilities in
its disclosure for administered items.
However superannuation contributions paid or payable for the reporting period are included
as part of employee benefits in the comprehensive operating statement of the Health Service.
The name, details and amounts expense in relation to the major employee superannuation
funds and contributions made by the Health Services are as follows:
2015 2014
$ $
Defined benefit plans:
First State Super 23,602 57,218Defined contribution plans:
First State Super 557,240 538,635HESTA 178,775 143,502HostPlus 32,388 23,909Total 792,005 763,264
There are no outstanding contributions owed to any superannuation funds on behalf of any
Beechworth Health Service employees as at 30 June 2015.
Paid Contribution for the year
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 13: Superannuation
page 42
2015 2014
$ $
CURRENT
Monies Held in Trust *
- Patient Monies Held in Trust * 301,981 339,681
- Accommodation Bonds (Refundable Entrance Fees) * 5,031,137 2,702,777
Other
- Other Monies Held in Trust 71,455 80,720
- Equipment Deposits - 60
- Other 56,812 36,244
Total Current 5,461,385 3,159,482
Total Other Liabilities 5,461,385 3,159,482
* Total Monies Held in Trust Represented by the following
assets:
Cash Assets (refer to Note 5) 5,404,573 3,123,238
TOTAL 5,404,573 3,123,238
2015 2014
$ $
(a) Surpluses
Property, Plant & Equipment Revaluation Surplus
Balance at the beginning of the reporting period 13,825,064 9,438,577
Revaluation Increment/(Decrements)
- Land - (304,000)
- Buildings - 4,690,487
Balance at the end of the reporting period * 13,825,064 13,825,064
* Represented by:
- Land 606,000 606,000
- Buildings 13,219,064 13,219,064 Total Reserves 13,825,064 13,825,064
(b) Contributed Capital
Balance at the beginning of the reporting period 8,310,690 8,310,690
Capital contribution received from Victorian Government - - Balance at the end of the reporting period 8,310,690 8,310,690
(c) Accumulated Surpluses/(Deficits)
Balance at the beginning of the reporting period 952,123 2,097,478
Net Result for the Year (109,279) (1,145,355) Balance at the end of the reporting period 842,844 952,123
Total Equity at end of financial year 22,978,598 23,087,877
BEECHWORTH HEALTH SERVICE
Note 14: Other Liabilities
Notes to the financial statements 30 June 2015
Note 15: Equity
page 43
2015 2014
$ $
Net Result for the Year (109,279) (1,145,355)
Non- cash movements:
Depreciation & Amortisation 849,664 1,092,452
Provision for Doubtful Debts (3,840) 1,988
Revaluation of Investment Property - (20,000)
Assets found at no cost (78,308) -
Movements included in investing and financing activities:
Net (Gain)/Loss from Sale of Plant and Equipment 31,556 2,248
Movements in assets and liabilities
Change in Operating Assets & Liabilities
Increase/(Decrease) in Payables (50,865) (50,419)
Increase/(Decrease) in Employee Benefits (250,795) (23,391)
Increase/(Decrease) in Other Liabilities 11,243 (200,709)
(Increase)/Decrease in Receivables 184,993 (72,503)
Change in Inventories 17,310 (9,625)
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 601,679 (425,314)
Note 16: Reconciliation of Net Result for the Year to Net Cash
Inflow/(Outflow) from Operating Activities
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 44
(a) Financial Risk Management Objectives and Policies
The Beechworth Health Service's principal financial instruments comprise of:
- Cash Assets
- Term Deposits
- Receivables (excluding statutory receivables)
- Payables (excluding statutory payables)
- Accommodation Bonds and Refundable Accommodation Deposits
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 expensesare recognised, with respect
to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the
financial statements.
The Health Service's main financial risks include credit risk, liquidity risk and interest rate risk. The
Health service manages these financial risks in accordance with its financial risk management policy.
The Health Service uses different methods to measure and manage the different risks to which it is
exposed. Primary responsibility for the identification and management of financial risks rests with the
financial risk management committee of the Health Service.
The main purpose in holding financial instruments is to prudentially manage Beechworth Health
Service's financial risks within the government policy parameters.
Categorisation of Financial Instruments
Details of each categories in accordance with AASB 139, shall be disclosed either on the face of
the balance sheet or in the notes
Contractual Contractual
financial financial
assets - loans liabilities at
and receivables amortised cost Total2015 $ $ $
Financial AssetsCash and Cash Equivalents 6,269,304 - 6,269,304
Loans and Receivables 489,974 - 489,974
Total Financial Assets (i) 6,759,278 - 6,759,278
Financial LiabilitiesPayables (at amortised cost) - 228,363 228,363
Accommodation Bonds (at amortised cost) - 5,031,137 5,031,137
Other Liabilities (at amortised cost) - 430,248 430,248
Total Financial Liabilities (ii) - 5,689,748 5,689,748
Contractual Contractual
financial financial
assets - loans liabilities at
and receivables amortised cost Total2014 $ $ $
Financial AssetsCash and Cash Equivalents 3,455,933 - 3,455,933
Loans and Receivables 520,299 - 520,299
Total Financial Assets (i) 3,976,232 - 3,976,232
Financial LiabilitiesPayables (at amortised cost) - 277,043 277,043
Accommodation Bonds (at amortised cost) - 2,702,777 2,702,777
Other Liabilities (at amortised cost) - 456,705 456,705
Total Financial Liabilities (ii) - 3,436,525 3,436,525
(b) Net holding gain/(loss) on financial instruments by category
Total interest income/(expense)2015 $
Financial AssetsCash and Cash Equivalents (iii) 203,460
Total Financial Assets 203,460
Total interest income/(expense)2014 $
Financial AssetsCash and Cash Equivalents 170,235
170,235
(i) The total amount of financial assets disclosed here excludes statutory receivables
(i.e. GST input tax credit recoverable)
(ii) The total amount of financial liabilities disclosed here excludes statutory payables
(i.e. Taxes payables)
(iii) For cash and cash equivalents, loans or receivables, the net gain or loss is calculated by taking
the movement in the fair value of the asset and interest revenue.
Notes to the financial statements 30 June 2015
Note 17: Financial Instruments
BEECHWORTH HEALTH SERVICE
page 45
(c) Credit Risk
Credit risk arises from the contractual financial assets of the Health Service, which comprise cash and
deposits, non-statutory receivables and available for sale contractual financial assets. The Health Service’s
exposure to credit risk arises from the potential default of a counter party on their contractual obligations
resulting in financial loss to the Health Service. Credit risk is measured at fair value and is monitored on a
regular basis.
Credit risk associated with the Health Service’s contractual financial assets is minimal because the main
debtor is the Victorian Government. For debtors other than the Government, it is the Health Service’s policy
to only deal with entities with high credit ratings of a minimum Triple-B rating and to obtain sufficient
collateral or credit enhancements, where appropriate.
In addition, the Health Service does not engage in hedging for its contractual financial assets and mainly
obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash
at bank. As with the policy for debtors, the Health Service’s policy is to only deal with banks with high credit
ratings.
Provision of impairment for contractual financial assets is recognised when there is objective evidence that
the Health Service will not be able to collect a receivable. Objective evidence includes financial difficulties
of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit
ratings.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets
recorded in the financial statements, net of any allowances for losses, represents Beechworth Health Service’s
maximum exposure to credit risk without taking account of the value of any collateral obtained.
Credit quality of contractual financial assets that are neither past due nor impaired
Financial Other Total
Institutions (min BBB
(AA credit rating) credit rating)
2015 $ $ $
Financial AssetsCash and Cash Equivalents 6,269,304 - 6,269,304
Receivables (i) -
- Trade Debtors - 489,974 489,974
Total Financial Assets 6,269,304 489,974 6,759,278
2014
Financial AssetsCash and Cash Equivalents 3,455,933 - 3,455,933 Receivables -
- Trade Debtors - 520,299 520,299
Total Financial Assets 3,455,933 520,299 3,976,232
(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian
Government and GST input tax credit recoverable).
Note 17: Financial Instruments (continued)
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 46
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
(c) Credit Risk (continued)
Ageing analysis of Financial Assets as at 30 June
Carrying Not Past Due Less 1-3 3 Months Impaired
Amount and Not Than Months - 1 Year Financial
Impaired 1 Month Assets
2015 $ $ $ $ $ $
Financial Assets
Cash and Cash Equivalents 6,269,304 6,269,304 - - - -
Receivables (i)
- Trade Debtors 489,974 420,114 21,111 19,852 28,897 -
Other Financial Assets
- Term Deposits - - - - - -
Total Financial Assets 6,759,278 6,689,418 21,111 19,852 28,897 -
2014
Financial Assets
Cash and Cash Equivalents 3,455,933 3,455,933 - - - -
Receivables (i)
- Trade Debtors 520,299 440,491 22,210 27,653 29,945 -
Other Financial Assets
- Term Deposits - - - - - -
Total Financial Assets 3,976,232 3,896,424 22,210 27,653 29,945 -
(i) Ageing analysis of financial assets must exclude the types of statutory financial assets (i.e GST input tax credit)
Contractual financial assets that are either past due or impaired
There are no material financial assets which are individually determined to be impaired. Currently the Health
Service does not hold any collateral as security nor credit enhancements relating to its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past
due or impaired, and they are stated at their carrying amounts as indicated. The ageing analysis table above
discloses the ageing only of contractual financial assets that are past due but not impaired.
Past Due But Not Impaired
Note 17: Financial Instruments (continued)
page 47
(d) Liquidity Risk
Liquidity risk is the risk that the Health Service would be unable to meet its financial obligations as and
when they fall due. The Health Service operates under the Government's fair payments policy of settling
financial obligations within 30 days and in the event of a dispute, making payments within 30 days from
the date of resolution.
The Health Service’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as
disclosed in the face of the balance sheet.
The following table discloses the contractual maturity analysis for Beechworth Health Service's financial
liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial
statements.
Maturity analysis of financial liabilities as at 30 June
Carrying Contractual Less 1-3 3 Months
Amount Cash Than Months - 1 Year
Flows 1 Month
2015 $ $ $ $ $
Financial Liabilities
Payables 228,363 228,363 228,363 - -
Other Financial Liabilities (i)
- Accommodation Bonds 5,031,137 5,031,137 - - 5,031,137
- Other Liabilities 430,248 430,248 430,248 - -
Total Financial Liabilities 5,689,748 5,689,748 658,611 - 5,031,137
2014
Financial Liabilities
Payables 277,043 277,043 277,043 - -
Other Financial Liabilities (i)
- Accommodation Bonds 2,702,777 2,702,777 - - 2,702,777
- Other Liabilities 456,705 456,705 456,705 - -
Total Financial Liabilities 3,436,525 3,436,525 733,748 - 2,702,777
(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities
(i.e GST payable)
Maturity Dates
Note 17: Financial Instruments (continued)
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 48
(e) Market Risk
The Beechworth Health Service's exposures to market risk are primarily through interest rate risk.
Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph
below.
Interest Rate Risk
Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial
instruments. For financial liabilities, the health service mainly undertake financial liabilities with
relatively even maturity profiles
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
The Health Service has minimul exposure to cash flow interest rate risks through its cash and deposits,
term deposits and bank overdrafts that are at floating rate.
The Health Service manages this risk by mainly undertaking fixed rate or non-interest bearing financial
instruments with relatively even maturity profiles, with only insignificant amounts of financial
instruments at floating rate. Management has concluded for cash at bank and bank overdraft, as
financial assets that can be left at floating rate without necessarily exposing the Health Service to
significant bad risk, management monitors movement in interest rates on a daily basis.
Interest Rate Exposure of Financial Assets and Liabilities as at 30 June
WeightedAverage Carrying Fixed Variable Non
Effective Amount Interest Interest Interest
Interest Rate Rate Bearing2015 Rate (%) $ $ $ $
Financial AssetsCash and Cash Equivalents 2.81% 6,269,304 4,500,000 1,767,354 1,950
Receivables (i)
- Trade Debtors - 489,974 - - 489,974
Total Financial Assets 6,759,278 4,500,000 1,767,354 491,924
Financial LiabilitiesPayables (i) 228,363 - - 228,363
Other Financial Liabilities
- Accommodation Bonds 5,031,137 - - 5,031,137
- Other Liabilities 430,248 - - 430,248
Total Financial Liabilities 5,689,748 - - 5,689,748
2014
Financial AssetsCash and Cash Equivalents 3.60% 3,455,933 2,850,000 604,133 1,800
Receivables (i)
- Trade Debtors - 520,299 - - 520,299
Total Financial Assets 3,976,232 2,850,000 604,133 522,099
Financial LiabilitiesPayables 277,043 - - 277,043
Other Financial Liabilities
- Accommodation Bonds 2,702,777 - - 2,702,777
- Other Liabilities 456,705 - - 456,705
Total Financial Liabilities 3,436,525 - - 3,436,525
(i) The carrying amount must exclude types of statutory financial assets and liabilities
(i.e. GST input tax credit and GST payable)
Note 17: Financial Instruments (continued)
Interest Rate exposure
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 49
(e) Market Risk (continued)
Sensitivity Disclosure Analysis
Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, the Beechworth Health Service believes the following
movements are 'reasonably possible' over the next 12 months.
- A shift of 100 basis points up and down in market interest rates (AUD) from year-end rates of 2.81%;
The following table discloses the impact on net operating result and equity for each category of financial instrument held by Beechworth Health Service at year end as presented to key management personnel,
if changes in the relevant risk occur.
Carrying
Amount
Profit Equity Profit Equity
2015 $ $ $ $ $
Financial Assets
Cash and Cash Equivalents (i) 6,269,304 (62,693) (62,693) 62,693 62,693
Receivables (i)
- Trade Debtors 489,974
Financial Liabilities
Payables 228,363 - - - -
Other Financial Liabilities (ii)
- Accommodation Bonds 5,031,137 - - - -
- Other Liabilities 430,248 4,302 4,302 (4,302) (4,302)
(58,391) (58,391) 58,391 58,391
2014
Financial Assets
Cash and Cash Equivalents 3,455,933 (34,559) (34,559) 34,559 34,559
Receivables (i)
- Trade Debtors 520,299
Financial Liabilities
Payables 277,043 - - - -
Other Financial Liabilities (ii)
- Accommodation Bonds 2,702,777 - - - -
- Other Liabilities 456,705 4,567 4,567 (4,567) (4,567)
(29,992) (29,992) 29,992 29,992
(i) eg. Sensitivity of cash and cash equivalents to a +1% movement in interest rates.
Similar for a -1% movement in interest rate.
(ii) The carrying amount must exclude types of statutory financial assets and liabilities
(i.e. GST input tax credit and GST payable).
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
+1%
Note 17: Financial Instruments (continued)
Interest Rate Risk
-1%
page 50
Note 17: Financial Instruments (continued)
(f) Fair Value
determined as follows:
• Level 1 - the fair value of financial instrument assets and liabilities 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.
All financial instrument assets and liabilities are level 1.
Comparison between carrying amount and fair value
Consolidated Fair Consolidated Fair
Carrying Value Carrying Value
Amount Amount
2015 2015 2014 2014
$ $ $ $
Financial AssetsCash and Cash Equivalents 6,269,304 6,269,304 3,455,933 3,455,933
Receivables (i)
- Trade Debtors 489,974 489,974 520,299 520,299
Other Financial Assets
- Term Deposits - - - -
Total Financial Assets 6,759,278 6,759,278 3,976,232 3,976,232
Financial LiabilitiesPayables 228,363 228,363 277,043 277,043
Other Financial Liabilities
- Accommodation Bonds 5,031,137 5,031,137 2,702,777 2,702,777
- Other Liabilities 430,248 430,248 456,705 456,705
Total Financial Liabilities 5,689,748 5,689,748 3,436,525 3,436,525
(i) The carrying amount must exclude types of statutory financial assets and liabilities
(i.e. GST input tax credit and GST payable).
The fair values and net fair values of financial instrument assets and liabilities are
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 51
Note 18: Commitments for Expenditure
2015 2014
$ $
Other Commitments
Commitments contracted for at the reporting date which have not
been recognised as liabilities.
Payable:
Computer Equipment 67,292 104,327
Other - -
TOTAL 67,292 104,327
Not later than one year 44,315 54,461
Later than one year and not later than 5 years 22,977 49,866
67,292 104,327
Total Commitments for Expenditure (inclusive of GST) 67,292 104,327
less GST recoverable from the Australian Tax Office 6,117 9,484
Total Commitments for Expenditure (exclusive of GST) 61,175 94,843
Note 19: Contingent Assets and Contingent Liabilities
There are no known contingent assets or liabilities for Beechworth Health Service as at the
date of this report.
2014: Nil
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
page 52
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
$ $ $ $ $ $ $ $ $ $ $ $
Revenue 5,292,188 4,955,859 3,443,161 3,558,652 439,361 479,131 791,615 751,877 3,019,618 2,361,580 12,985,943 12,107,099
Expenses (6,533,056) (6,447,614) (2,815,024) (2,826,012) (611,080) (664,560) (796,483) (851,739) (2,543,039) (2,632,764) (13,298,682) (13,422,689)
Net Result from
ordinary activities (1,240,868) (1,491,755) 628,137 732,640 (171,719) (185,429) (4,868) (99,862) 476,579 (271,184) (312,739) (1,315,590)
Interest Income - - - - - - - - 203,460 170,235 203,460 170,235
Net Result for Year (1,240,868) (1,491,755) 628,137 732,640 (171,719) (185,429) (4,868) (99,862) 680,039 (100,949) (109,279) (1,145,355)
OTHER INFORMATIONSegment Assets 18,368,726 16,661,204 6,962,508 7,194,553 6,831 33,845 144,042 166,572 - - 25,482,107 24,056,174
Unallocated Assets - - - - - - - - 5,297,994 4,832,963 5,297,994 4,832,963
Total Assets 18,368,726 16,661,204 6,962,508 7,194,553 6,831 33,845 144,042 166,572 5,297,994 4,832,963 30,780,101 28,889,137
Segment Liabilities 6,323,787 4,070,002 314,885 377,269 68,666 82,683 145,847 170,560 - - 6,853,185 4,700,514
Unallocated Liabilities - - - - - - - - 948,318 1,100,746 948,318 1,100,746
Total Liabilities 6,323,787 4,070,002 314,885 377,269 68,666 82,683 145,847 170,560 948,318 1,100,746 7,801,503 5,801,260
Depreciation Expense 385,874 45,626 222,077 26,394 152 943 11,106 10,347 230,455 1,009,142 849,664 1,092,452
The major products/services from which the above segments derive revenue are:
Business Segments Services
Residential Aged Care Services (RACS) Includes "Stringybark Lodge" - aged care hostel and "The Acacias" - nursing home.Acute
Mental Health Former mental health programs are now managed by Albury Wodonga HealthAged Care Includes Planned Activity Groups at Beechworth, Tangambalanga and Yackandandah and HACC funded servicesPrimary Health Includes Allied Health servicesOther Includes Catering, Meals Services, Capital Interest, Capital Grants for construction and Support Costs.
Beechworth Health Service operates predominantly in North East Victoria. More than 90% of revenue, expenses from ordinary activities and segment assets relate to operations
in North East Victoria.
Acute
Geographical Segment
Notes to the financial statements 30 June 2015
BEECHWORTH HEALTH SERVICE
Note 20: Operating Segments
Primary HealthAged Care Other TotalRACS
page 53
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.
Responsible Ministers:
The Honourable David Davis, MLC, Minister for Health and 01 Jul 2014 03 Dec 2014
Minister for Ageing
The Honourable Jill Hennessey MLA, Minister for Health, Minister 04 Dec 2014 30 Jun 2015
for Ambulance Services
The Honourable Martin Foley, Minister for Housing, Disability and 04 Dec 2014 30 Jun 2015
Ageing, Minister for Mental Health
Governing Boards:
Ms Katie E Warner 01 Jul 2014 30 Jun 2015
Ms Jennifer Gordon 01 Jul 2014 30 Jun 2015
Mr Will S Gwosdz 01 Jul 2014 30 Jun 2015
Mr Gavin Hanlon 01 Jul 2014 30 Jun 2015
Ms Patricia Mom 01 Jul 2014 30 Jun 2015
Mr Gary Saliba 01 Jul 2014 30 Jun 2015
Ms Leanne M. Williams 01 Jul 2014 30 Jun 2015
Mr David Lawrence 01 Jul 2014 30 Jun 2015
Accountable Officers:
C. Butler - Chief Executive 01 Jul 2014 30 Jun 2015
The number of responsible persons are shown in their relevant income bands.
2015 2014
Income Band No. No.
$0 – $9,999 8 7
$150,000 – $159,999 0 1
$160,000 – $169,999 1
9 8
Total remuneration received or due and receivable by $,000 $,000
Responsible Persons from the reporting entity amounted to: 164 155
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 21a: Responsible Persons Disclosures
Remuneration of Responsible Persons
Period
page 54
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 in
their relevant income bands. Base remuneration is exclusive of bonus payments, long-service leave
payments, redundancy payments and retirement benefits.
Total Remuneration Base Remuneration
2015 2014 2015 2014
Income Band No. No. No. No.
$100,000 – $109,999 1 1 1 1
$110,000 – $119,999 - 3 - 3
$130,000 – $139,999 2 - 2 -Total 3 4 3 4
Total annualised employee equivalents (AEE) 3 4 3 4
$,000 $,000 $,000 $,000
Total Remuneration 376 456 376 456
Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over
the 52 weeks for a reporting period.
Note 22: Remuneration of Auditors
2015 2014
$ $
Victorian Auditor-Generals Office
Audit of Financial Statements 19,500 19,000
Note 23: Events Occurring after the Balance Sheet Date
There are no events after Balance Date that would alter the disclosures made.
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Note 21b: Executive Officer Disclosures
page 55
2015
$
2014
$
Interest 203,460 170,235
Sales of goods and services 3,661,580 3,067,966
Grants 9,162,113 8,522,160
Other current revenue 193,806 519,221
Total revenue 13,220,959 12,279,582
Employee expenses 9,735,052 9,596,184
Depreciation 849,664 1,092,452
Other operating expenses 2,713,966 2,734,053
Total expenses 13,298,682 13,422,689
Net result from transactions - Net operating balance (77,723) (1,143,107)
Net gain/ (loss) on sale of non-financial assets (31,556) (2,248)
Total other economic flows included in net result (31,556) (2,248)
Net result (109,279) (1,145,355)
blank blank
Note: This alternative presentation of the comprehensive operating statement does not form part of the
audited financial statements and is unaudited.
BEECHWORTH HEALTH SERVICENotes to the financial statements 30 June 2015
Appendix A - Alternative presentation of comprehensive operating
statement
Page 56