159th ANNUAL REPORT - Parliament of Victoria...159th ANNUAL REPORT 2014 Address: Rutledge Street,...

THE KILMORE & DISTRICT HOSPITAL1 5 9 t h A N N U A L R E P O R T

2014

Address: Rutledge Street, KilmoreP.O. Box 185, Kilmore 3764

Telephone: (03) 5734 2000

Facsimile: (03) 5782 2019 (Admin)(03) 5781 0219 (Clinical)

Web: www.kilmoredistricthospital.org.au

Design & Print by Kwik Kopy Thomastown

C O N T E N T S

Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Strategic Themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Report of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Audit Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Statistical Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Organisational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-7

Statement of Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8-9

Statutory Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10-11

E.E.O. Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Service Activity Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Auditor General’s Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15-16

Finance Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Operating Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Changes in Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21-54

Disclosure Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

MISSION STATEMENT

The Kilmore & District Hospital and Nursing Home will provide thecommunity with high quality progressive health care and accommodation.

VALUESWe place a high value on…• Recognition of the dignity, integrity and rights of the individual• Excellence in all aspects of our work• Staff commitment and support• Accountability to all stakeholders• Visibility in the community• Co-operation with other health care providers

VISIONThe community sees The Kilmore & District Hospital and Nursing Home asthe preferred provider and facilitator for its whole-of-life health relatedservices.

ESTABLISHEDHospital 1860 and incorporated 7th November, 1864.Nursing Home 1986.Hostel 1997.

APPROVED BEDS30 Acute30 Nursing Home30 Hostel

SUMMARYComprehensive acute and aged care services are provided to our rapidlyincreasing catchment population of 25,000 that extends to Broadford andPyalong in the north, Wallan and Craigieburn in the south and Lancefieldand Romsey in the west. Today, over 2,300 patients are treated, 60residents accommodated, 200 staff employed and operating expenditureamounts to in excess of $18.4 million.

1Annual Report 2014

1. Care and Development of Workforce

• Attract and support volunteers

• Provide opportunities for professional development

• Develop sustainable workforce models

• Promote the health and welfare of our workforce

• Provide a safe workplace

2. Business Continuity

• Maintain financial viability of agency

• Keep abreast of relevant developments in technology

• Maintain and develop infrastructure

• Review the service mix of our agency

• Maintain diligence in governance

• Operate on the basis of soundly researched and considered advice

• Identify new and alternative sources of funding

3. Quality of Care for our Patients,Residents & Clients

• Maintain appropriate accreditation status

• Engage appropriately qualified and skilled practitioners

• Maintain a safe practice framework

• Maintain a quality framework

• Recognise and respect the quality of life needs of our clients

• Maintain an appropriate physical environment

• Maintain an environment conducive to high standards of comfort and

acceptance

4. Connection with the Community

• Develop systems to identify community needs

• Provide opportunities for the community to improve their health and

well being

• Monitor and evaluate community perceptions

• Stay informed of the changing health environment

• Enable our community to easily access our facilities

5. Strategic Relationships

• Demonstrate leadership in health services

• Work constructively with other agencies

• Maintain effective relationships with Department of Health, Ministers

and Government

• Develop and maintain strategic relationships with teaching hospitals,

universities and mentors

KILMORE AND DISTRICT HOSPITALSTRATEGIC THEMES

REPORT OF OPERATIONSOn behalf of the Board, and in accordance with the Financial ManagementAct 1994, it gives me great pleasure to present the Report of Operationsfor The Kilmore & District Hospital for the year ended 30th June 2014.

Whilst much has been achieved, the year has not been without itschallenges.

SummaryA number of initiatives continue or have come to fruition during 2012-13,including:

Significant activities during 2013-14, include:

• Record levels of surgical procedures during the year;

• Progress with the redevelopment has seen the frame erected for theoutpatient facility and slab poured for the hospital extension. Anumber of minor works including offices, stores and maintenance arenearing completion. All works are currently scheduled to becompleted by March 2015. This project has taken over 5 years tobring to this stage, and will be the foundation for future growth;

• Admission of private inpatients has generated (approx $429,000)additional revenue while enabling clients to have no out-of-pocketexpenses;

• Additional private/self-funded surgery lists (ENT and Dental) toincrease services to our local community;

• The Board decided to expand the maternity service rapidly to cater forthe loss of maternity services at Seymour Health; additional fundsreceived did not cover the costs leading to a shortfall of approximately$100,000;

• As a result of the above, additional appointments mean there are nowsix obstetricians, full midwife and surgical coverage for maternityservices;

• Low occupancy in both of the residential aged care facilities(Caladenia and Dianella) through the middle of the year wereimproved by year end; this leads directly to a shortfall ofapproximately $800,000 year-on-year;

• Progressing area health services planning through the work of ourMitchell Health Services Planning Group, and Lower Hume PrimaryCare Partnership;

• Developing formal relationships with The Northern Hospital at Boardand Executive level; similar relationships have also been developedwith Seymour Health;

• With the support of Department of Health, community contributions,and general reserves, $169,000 was spent on replacement andupgrade of existing equipment.

• We continue to receive above average funding increases from theState health budget.

• Notwithstanding the above, we report an operating deficit of$949,000.

• Capital funding (principally around the redevelopment) leads to a totalagency surplus of $5,167,000 for 2013/14;

GovernanceThe Board continues its commitment to good governance of the Agencythrough the review of Board structure and operations. We have in place anannual timetable and agenda format which focuses on policy and strategicdirection including:

• Strategic Plan to provide the overall direction for the agency. The Planincludes our mission and values and Key Result Areas for the agency.(See page 1 of this report, which also includes Key PerformanceIndicators to enable our performance to be monitored.)

• Corporate Financial Plan which provides the framework to guide theday-to-day decision making, and benchmarks our performance withlike sized agencies.

• Strategic Risk Management document which provides a frameworkfor risk management within the agency, as well as industrybenchmarks.

• Business Plan which is developed by the Senior Managers of ouragency each year, and includes our annual goals, with links to ourStrategic Plan.

• Marketing Plan particularly focuses on how and what information willbe provided to our clients and the community in general.

• Facilities Master Plan to guide the future uses and development ofbuildings and infrastructure.

The Audit Committee remains the only standing committee of the Board,providing stewardship of the risk management practices for all theAgency’s operations, not only on financial matters. The Committee hasdeveloped a three-year (rolling) audit plan, and processes continue to beaudited in accordance with this plan. An outline of the Audit Committee’sachievements this year can be found on page 5 of this report. I thank ourAudit Committee Chair, Julia McGill and her fellow members for theircommitment to continued development of the role and function of thiscommittee.

The Board has formed a Consumer & Community Participation Committeeto enhance the links between our local community and the hospital. TheBoard is also represented on the Project Control Group for the hospitalredevelopment.

The Board is committed to monitoring and improving its own performancethrough:

1. An annual self-appraisalIn general the Board is pleased with its general performance and thestrategic direction of our agency.

2. An annual “Skills Profile” that enables individual members to:

• Indicate their competency within a range of eleven criteria, forexample; health issues/planning, finance/audit, law, or understandingof agency;

• Indicate a need for internal or external education;

• Compare our board demographic with that of our community andclients.

The Board continued its duties with one casual vacancy through the year.Ms. Berry McSherry tendered her resignation to the Minister. Theadministrative process for this resignation was completed in November2013. Dr Jeffrey Robinson decided not to seek re-appointment beyond 30June 2014. All Board positions have been filled effective 1st July 2014

I would like to thank my fellow Board Members for their due considerationof the challenges that necessarily face the Board, and for the time theyhave contributed to their roles outside of the monthly meetings. I alsothank the Executive Staff for the support they have provided to us duringthe year.

2 THE KILMORE & DISTRICT HOSPITAL

3Annual Report 2014

We could not offer our high quality of service without the skills of our 200staff and doctors (GPs and specialists), supported by contractors. Theseskills are not just in nursing and clinical care, but also maintenance,catering, cleaning, and administration. On behalf of the Board ofManagement, I extend my sincere thanks.

Quality ManagementQuality improvement continues to be a focus of all departments within ouragency. These activities are coordinated by our Director of Nursing and ourQuality & Risk Management Committee. The Board receives an annualQuality Plan in August each year, with regular updates of progress throughthe year. On behalf of the Board, I extend our appreciation for the continuedcommitment of all our staff to the improvement in and quality of all ourservices.

In June 2014, we completed our Periodic Self-Assessment as part of thefour year accreditation cycle conducted by the Australian Council ofHealthcare Standards (ACHS) for our non aged care residential services. Wecontinue to retain our maximum accreditation status, and look forward toJune 2015 for our Organisation-Wide Survey against the ten NSQHSStandards.

The standards of care in our aged care facilities (Caladenia Nursing Homeand Dianella Hostel) continue at the very high level we have come toexpect, and our staff and the community in general can be proud of thesefacilities. In July 2012 the Aged Care Standards Agency (ACSA) conducteda scheduled survey with satisfactory compliance for all standards. A spotaudit in March 2014 also received satisfactory results.

Hospital ServicesInpatients:

During the financial year:

• We treated 2,339 acute inpatients, who stayed for 5,385 days, andgenerated 1,463 WIES;

• Surgical services (1,429 operations) were at record levels, andincluded 131 from the elective waiting list for The Northern Hospital;

• Births (228) which included 39 mother who were previously booked fordelivery in Seymour;

• Acute medical inpatients numbers however remain low. While some ofthe fall in demand can be attributed to better management of chronicdiseases, much of the decrease can be attributed to how we care forour elderly both in the community and in our aged care residences.

There continues to be potential to increase significantly the level of servicesprovided to our community through the hospital. A review of Department ofHealth (DoH) statistics for past years showed that only 21% of publichospital admissions from our primary catchment areas (Kilmore, Wallan,Wandong and Broadford) came to our hospital. We also have the capacitywith only 49% bed occupancy, and operating theatre used only three to fourdays per week.

Urgent Care Centre

Presentations to the Urgent Care centre in 2013/14 were higher than theaverage of prior years with 8,531 attendances. A review of theseattendances indicates that the vast majority were appropriate for theagency. We have a number of systems in place to control inappropriateattendances, so as not to put too much strain on our medical serviceproviders. Our local GPs must also maintain their own practices. We arefortunate to have access to a local “bulk billing” clinic which has agreed totake non-emergency referrals during work hours.

We also acknowledge the excellent support received from the EmergencyDepartment at The Northern Hospital, and from our local ambulance service.

I thank all our GPs for their commitment to our UCC, and thank our nurseswho are always the first line of service.

District Nursing Service

Demand for our District Nursing Service fluctuated during the year. However,the final total of 6,082 home visits was substantially higher than any of thepast three years. In addition to the standard district nurse service, additionalroles in post-acute care, palliative care, private dressings and postnatalvisits are also provided. Our nursing staff continue to work with other healthagencies to streamline service coordination and referral systems.

Residential Services

Occupancy rates continued to cause concern during 2013/14, with up tonine vacancies at any one time in our Nursing Home and up to six vacanciesin our Hostel. The annual occupancy was substantially lower than last yearwith 83% for Caladenia and 91% for Dianella. In past years however wehave achieved around 99%. There clearly has been an impact from theprivate eighty-bed aged care residential facility in Kilmore and fromCommunity Aged Care Packages (CAPs).

It is notable that 30% of our clients come from Local Government Areasother than Mitchell Shire. This is reflective of the increased population in oursouthern catchment, with younger families wishing to accommodate olderrelatives closer to their homes. Demand is expected to increase in futureyears with three retirement villages approved for development in Kilmoretownship, and a number of others in neighbouring towns.

In 2012 we commenced a new Transitional Care service in partnership withGoulbourn Valley Health. Transitional Care (hospital) beds have been set upin Dianella Aged Care Hostel. This service assists elderly hospital patients toregain independence skills so they may more readily return to living athome. The service has also helped with our occupancy levels in residentialservices.

FinanceThe hospital and aged care facilities receive most of their funding (approx80%) from State and Commonwealth governments. Aged care funding ispredominantly occupancy based (ie, number of bed-days) whilst the hospitalfunding is by ‘block’ grant.

The total Agency recorded an operating deficit of $926,000. This was not apleasing result and areas of concern still remain:

• An underlying deficit in aged care residential services (exacerbated bylower occupancy);

• Unfunded costs associated with state-negotiated pay rises for ourstaff; and

• Continuing drive for productivity savings by both levels of government.

The total Agency recorded a surplus of $5,166,000 (including depreciation)for the twelve months to 30th June 2014. While it is pleasing to recordsuch a result, the majority of the surplus is due to recognition of capitalgrants $7,073,000 associated with the redevelopment. Aside from theredevelopment the Agency spent $169,000 on new and replacementequipment during 2013/14. This year we received $90,000 in capitalcontributions from the state, the majority of which was for the installation ofgenerators for our residential aged care facilities. We still however relyheavily on community contributions and our capital reserves to ensure themaintenance of our quality service.

Fund RaisingThe Agency continues to receive wonderful support from its auxiliaries andmembers of our community. On behalf of the Board, staff, patients andresidents, I thank you for your ongoing support.

Our Auxiliaries are important to us, not only in the fundraising that they do,but also in their public representation of our organization. They are excellentambassadors and help create a community ownership of the Hospital,Caladenia Nursing Home and Dianella Aged Care Hostel. The Ladies Auxiliarydonated $15,000 for new equipment during 2013/14. The Garden PartyAuxiliary, who run the Hospital Op Shop, donated a further $23,200. I wishto congratulate our auxiliary members for their extraordinary contributionand thank them on their efforts.

Once again we were ably supported by many community groups with thelocal Lions Clubs Rotary, Catholic Women’s League and Mechanics Instituteall making contributions this year. This year we raised more than $6,000 asbeneficiary of the Kilmore Racing Club’s Kids Day Out. We continue toreceive many individual donations to the Hospital and our aged carefacilities. In particular we received $30,000 from the Wallan CommunityBank for the purchase of new theatre lights. We thank you for all yourcontributions large and small. Total donations of $90,000 were receivedduring the year.

External RelationshipsWe continue to maintain close links with a range of groups and agencies.

Regular meetings are conducted with the Department of Health, both at theregional level and with Central Office in Melbourne. Some of these meetingsare opportunities to share information and experiences with peer agencies.Other meetings such as monthly Close Watch are solely focused onopportunities to improve the performance of our Agency. I wish to thank ourDepartment of Health colleagues for their support through the past financialyear.

The Mitchell Health Service Planning Group is a formal alliance between TheKilmore & District Hospital, Seymour Health, Mitchell Community HealthService, and Mitchell Shire with the aim of improving services and servicedelivery within the Mitchell Shire. The main focus of this group in 2013/14has been to implement the recommendations of the Mitchell Area ServicesPlan. Completion of the hospital expansion and commencement of servicedelivery from the Wallan (Nexus) Superclinic will go a long way to achievingmany of these recommendations. The Group also oversees and supports thegeneration of the Mitchell Shire Health & Wellbeing Plan, as well as generalplanning within Mitchell Shire.

Primary Care Partnerships continue to be a strong focus of the currentGovernment and Department of Health. Eighteen agencies from Mitchell andMurrindindi shires are members of the Lower Hume Primary CarePartnership. Member agencies have continued to work together over thelast twelve months particularly with health promotion and chronic diseasemanagement activities, as well as the development of a common referraland assessment tool. The revised Community Health Plan outlines ourcurrent and future direction, and funding requirements for the achievementof our alliance objectives.

Our agency continues to be part of the Hume Rural Health Alliance which isa joint venture arrangement with a primary focus on information technologydevelopment within the Hume Region. Membership of the alliance is madeup of all public hospitals and many other healthcare providers in the HumeRegion. Historically, standardization of operating systems, office, finance,patient and payroll/HR systems has enabled access to technology thatwould otherwise be too costly for small agencies such as ours.Establishment of a broadband network, via microwave links, has led to animprovement in the speed of data transfer and allowed for cost savings intelecommunications.

During the year our senior staff maintained our working relationship withstaff from the other agencies, in particular, The Northern Hospital, SeymourHealth, McIvor Health, Kyneton Health Service and our local AmbulanceService. There has also been engagement at the Board level with Nexusprimary Health, Seymour Health and The Northern Hospital, exploringopportunities for collaboration and service integration. Our senior staff alsocollaborate with their counterparts at other agencies to develop commonpolicies and practices where appropriate. We maintain an understanding ofthe service needs of agencies like SES, CFA and local Police through theMitchell Shire Emergency Management Planning Committee. Thesecontacts allow us to better integrate as part of a total service sector for ourcommunity

Our local political representatives continue to provide assistance to ourAgency. I wish to thank our (Commonwealth) ministers for Health & Ageingand the (State) Health Minister for their support during the year. During2013/14 we were fortunate to have regular communication with Hon. DavidDavis concerning service and funding issues as well as the VictorianGovernment’s commitment to our $20 million redevelopment. I also thankour local Members of Parliament, Cindy McLeish, Amanda Millar and RobMitchell. We appreciate the time they have all taken to listen to our issuesand particularly to support our submissions to government.

The Year AheadNext year is full of promise.

Of great excitement to the Board and staff of our agency (and I am sure forour community) will be completion of the $20 million redevelopment forKilmore Hospital. The redevelopment will see:

• A doubling of our Agency’s acute service capacity;

• A new operating theatre suite including ’Day procedure unit; and

• Outpatient facilities enabling services for the continuum of care in ourcommunity.

We are working with our neighbouring service providers to minimisedisruption to our surgical services during theatre closures later in the year.We hope to finalise construction of the outpatient facility by December2014, and open the additional hospital ward in March 2015.

Our initial projections for 2014/15 are for a small operating deficit and alarger total agency surplus, on the back of progress with the redevelopment.We will continue to work with staff from the Department of Health (DoH) togain increased funding in line with our expanded facilities, while reviewingour internal processes in an endeavour to provide more efficient servicedelivery.

Review of our strategic plan, renewal of the business plan and thecontinuing quality activities will provide a surety of direction for the Boardand our staff. The continued support of staff and the community will enablethe ongoing viability of our agency into the future, and the maintenance ofthe excellent service we do provide.

John Dixon Bart RuyterBoard President Chief Executive Officer

Kilmore 11th August 2014


5Annual Report 2014

STATISTICAL / RESIDENCES OF PATIENTS

HospitalAccommodation Available (Beds)Daily Bed AverageOccupancy Rate (%)Inpatients TreatedWIESInpatient DaysAverage Length of StayNumber of OperationsBirthsOutpatients AttendanceDistrict Nurse VisitsMeals on Wheels

Nursing HomeAccommodation Available (Beds)Daily Bed AverageOccupancy Rate (%)Residents AccommodatedResident DaysAverage Length of Stay

HostelAccommodation Available (Beds)Daily Bed AverageOccupancy Rate (%)Residents AccommodatedResident DaysAverage Length of Stay

201130

17.7659.212241155064482.89968201

886643626568

3028.9896.61

4910,579215.9

3026.6288.74

389,718255.7

201230

18.6562.162349159668072.90

1139230

842344655792

3028.2294.08

5110,302202.0

3027.9092.99

6110,182

166.9

201330

16.2754.242176147159392.73

1159197

79075725

12933

3029.3897.20

4310,723249.4

3029.1697.21

7210,644147.8

201430

14.7549.182339146353852.30

1.429228

8.5316.082

11.370

3024.9983.32

539,123172.1

3027.3691.19

969,985104.0

201030

18.4661.542224152967393.03

1020224

813434326962

3028.5395.11

4410,414236.8

3028.6095.33

4310,439242.8

During the year the Committee comprised of five Hospital Board membersappointed by the Board. The Committee held six meetings and inaccordance with the Committee's 2013/14 Audit Plan carried out reviewsof a number of Hospital functions, namely:

• Accounts Payable• Tax Compliance• Volunteer Management• Incidents & Near Misses• Complaints Management• Leave Management• Management of staff & VMO Competencies• Review of CEO Limitations• Year end external financial audit

OutcomesThe Committee found that in most cases policies and procedures are of ahigh standard and are such as to ensure the Hospital and Aged Care

facilities are conducted in accordance with Departmental and Legislativerequirements. In some instances, the Committee made recommendationsto the Executive for modification or improvement of procedures. Where applicable, the Committee confirmed that information provided tothe Board by the executive staff was accurate.

Audit PlanAn interim audit plan will be developed for 2014/15.

On behalf of the Committee I express my appreciation for the supportprovided by Colin Clark, Director of Finance and Administration, during2013/14.

Julia McGillChairperson

THE KILMORE AND DISTRICT HOSPITALAUDIT COMMITTEE2013/2014 ANNUAL REPORT


AUDIT COMMITTEE

STANDING COMMITTEES

Quality & Patient Care

Maternity Services

Palliative Care

Health Information

Education

Anaesthetics

Quality & Patient Care

OH & S Credentials Committee

Infection Control

Waste Management

Risk Management Medical Appointments

PRESIDENTJOHN DIXON

VICE PRESIDENTWALLY ARNOTT

AUDIT CHAIRJULIA McGill

MINISTER FOR HEALTH (Vic)The Hon. Mr. D. Davis (MP)

MINISTER FOR AGED CARE (Vic)The Hon. Mr. D. Davis (MP)

AUDITORSAccounting & Audit Solutions

Bendigo

MINISTER FOR HEALTH (Com.)The Hon. Mr. P. Dutton (MP)

MINISTER FOR AGING (Com.)The Hon. Mr. M. Fifield (MP)

BANKERSNational Australia BankCommonwealth Bank

SOLICITORI.B. Still & Co.Health Legal

D

Consumer & CommunityParticipation Committee

Medical Staff Group

BOARD OF MANAGEMENT

MEMBERS

JEFFERY ROBINSON

GEOFFREY SEKFY

LEONARD WHITEHOUSE

BERRY McSHERRY

CAMILLE LAWSON

ALAN WILCOX

CHIEF EXECUTIVE OFFICERBART RUYTER

7Annual Report 2014

Visiting Medical OfficersAcute Nursing Services

Theatre

Midwifery

Urgent Care Centre

District Nursing

Nursing Home

Hostel

Palliative Care

Pharmacy

Quality Assurance

Volunteer Co-Ordinator

Accounts Payable/Receivable

Investments

Budgeting

Payroll

Reception

Stores

Computer Services

Insurance

Maintenance Services

Catering Services

Health Information Mgmt.

Cleaning Services

Human Resources

I

DIRECTOR OF MEDICAL SERVICESIAN BRAND

DIRECTOR OF NURSINGJENNIFER SALKELD

DIRECTOR OF FINANCE & ADMINISTRATIONCOLIN CLARK

C

Priority Action Deliverable OutcomeDeveloping a systemthat is responsive topeople’s needs

Implement formal advance careplanning structures andprocesses that provide patientswith opportunities to develop,review and have their expressedpreferences for future treatmentand care enhanced.

Complete an education program forclinical staff and community onadvanced care planning philosophy

Completed

In partnership with other serviceproviders apply existing servicecapability frameworks tomaximise use of availableresources across the catchment.

In partnership with The NorthernHospital (TNH), KDH will undertakea review to identify options for TNHoncology clients to undertakechemotherapy treatments locally inKilmore

Ongoing.Funding received to progressmodel of care, Expect to completemodel by March 2015.

In partnership with TNH andSeymour Health, KDH willundertake a formal review ofsustainable models for maternitycare by 31 December 2013.

Review completed.KDH has improved service modelwith the additional of Seymourbirths.

Improving everyVictorian’s health statusand experiences

Improve thirty-day unplannedreadmission rates.

Undertake a review of dischargeplans of clients readmitted withinthirty days, with a view to reducingfuture occurrences for similarclients.

Review completed.Recommendations implemented.

Collaborate with key partnerssuch as Medicare Locals,community health services andother providers to support localimplementation of the VictorianHealth and Wellbeing Plan2011-2015.

Work in partnership with membersof Lower Hume Primary CarePartnership (LHPCP) to implementstrategies to address the Humeregion integrated health promotion(IHP) priority, healthy eating; andLHPCP IHP for alcohol and drugs

Ongoing.IHP is expected to continue untilJune 2015.

Expanding service,workforce and systemcapacity

Build workforce capability andsustainability by supportingformal and informal clinicaleducation and training for staffand health students, in particularinter-professional learning.

Complete ‘Expanded Scope ofPractice’ training for KDH urgentcare staff.

Training completed.

Work collaboratively with thedepartment on service andcapital planning to developservice and system capacity.

Identify priorities related to servicedelivery following the capitalinvestment in KDH.

Service modelling completed withrequest for growth fundingsubmitted to Dept of Health.

Increasing the system’sfinancial sustainabilityand productivity

Reduce variation in healthservice administrative costs.

Evaluate financial performanceagainst benchmark results asprovided by the Benchmark PracticeImprovement project.

Evaluation completed Agencyrevenue above peer average andexpenses align.

Implementing continuousimprovements andinnovation

Develop and implementstrategies that optimise access,patient flow, system coordinationand the quality and safety ofhospital services.

Develop and implement strategiesto establish the ten National Quality& Safety Standards at KDH.

Ongoing.Quality Plan in place.Organisation wide surveyscheduled for June 2015.

Increasing accountability& transparency

Increase transparency andaccountability in reporting ofaccurate and relevantinformation about theorganisation's performance.

Undertake a review of the impact ofCommonwealth legislative changesin aged care, including identificationof opportunities to increase servicesfor our community.

Ongoing.Agency complied with DSSchanges for 1st July 2014. CDCscheduled to start in January2015.

Improving utilisation ofe-health andcommunicationstechnology.

Trial, implement and evaluatestrategies that use ICT as anenabler of better patient care.

In collaboration with the HumeRegional Health Alliance (HRHA),and in partnership with TNH,explore opportunities to supportKDH urgent care staff and clientsthrough the use of Telehealth.

Ongoing.Equipment ordered. Protocols yetto be established with TNH.


THE KILMORE & DISTRICT HOSPITAL - STATEMENT OF PRIORITIES PART A - STRATEGIC PRIORITIESThe Victorian Government’s priorities and policy directions are outlined in the Victorian Health Priorities Framework 2012-2022. In 2013-14 The Kilmore &District Hospital contributed to the achievement of these priorities by:

9Annual Report 2014

-0.93

THE KILMORE & DISTRICT HOSPITAL - STATEMENT OF PRIORITIES PART B - PERFORMANCE PRIORITIES

60


STATUTORY INFORMATIONREQUIREMENTSThe Kilmore & District Hospital is incorporated under the Health ServicesAct 1988. The Kilmore & District Hospital’s Annual Report has beencompiled to meet the requirements of the Financial Management Act1994 (as amended), the Standing Directions of the Minister of Finance,and other acts. Information required by legislation – but not recordedelsewhere in this annual report is summarized below.

Staff Superannuation BenefitsEvery full-time, part-time and casual employee at the Kilmore & Districthospital automatically receives the non-contributory Basic Benefitsuperannuation as part of their employment package. This benefit isfinanced by the Hospital and managed by the Hospital’s Superannuationboard. The Basic Benefit includes:• A lump sum payment on retirement any time after age 55. This

grows each year at 9.25% of salary (increasing to 9.50% from 1stJuly 2014), with interest added annually at the fund-earning rate.

• Personal disability insurance cover.• Death benefits for dependants.

Freedom of Information The agency has adhered to the requirements of the Freedom ofInformation Act 1982, as amended. During the year 2013/14 there was21 Freedom of Information requests.

Protected Disclosure Act 2001In accordance with the Act, appropriate policy and procedures are inplace. Information about the policy has been widely distributed. Therehave been no notifications under this policy.

Carers Recognition Act 2012In accordance with the Act, appropriate policy and procedures are inplace. Information about the policy has been widely distributed.

Competitive NeutralityThe agency has in place a plan for implementation of the VictorianGovernment’s policy on Competitive Neutrality.

Outsourcing of ServicesThe following Services are currently outsourced and represent less than1.0% of the Agency’s total expenditure:• Pathology• Allied Health Services• Non-core Cleaning • Non-core Engineering & Maintenance

Pecuniary InterestMembers of the Board of Management are required to notify thePresident of the Board of any pecuniary interest, which might give rise toa conflict of interest. Each member has completed a statement ofpecuniary interest.

PublicationsThe following publications dealing with functions, powers, duties, andactivities of the Agency were produced in 2013/14 and may be viewed atthe Hospital upon request.• The Kilmore and District Hospital 2012/13 annual report.• Health Service Agreement 2013/14 between The Kilmore and

District Hospital, and the Hume Region of Department of Health.• Statement of Priorities Agreement 2013/14 between The Kilmore

and District Hospital, and the Hume Region of Department of Health.

Overseas VisitsNil.

Time Lost through Industrial DisputesNil.

Cost of Consultants EngagedDuring 2013/14, there were three consultants engaged for a total of$28,600, for varying services including grant applications, businessreview, and internal audit.

Victorian Industry Participation PolicyThis Agency has no requirements of disclosures under Victorian IndustryParticipation Policy 2003 for the 2013/14 financial year.

Fees and ChargesThe Hospital and Aged Care Facilities charge fees in accordance with theDepartment of Health and Community Services directives issued underSection 9 of the Hospital’s and Charities (Fees) Regulations 1986, asamended.

Building StandardsIt is the aim of this agency to comply with all regulatory requirements.Certificate No.6 of Fire Safety Compliance was duly signed for 2013/14.

Equal OpportunityThe Kilmore & District Hospital, Nursing Home and Hostel are an equalopportunity employer. The Hospital’s Affirmative Action Policy ensuresthat all employees will work in an environment, which provides equalopportunity and supports E.E.O. standards. Our EEO program objectivesare:• To monitor current personnel practices and to endeavor to ensure

that the agency continues to recruit and promote staff gaining dueregard to the provisions of the Public Administration Act 2004 whilstimproving staff selection procedures.

• To ensure that the staff education policy allows all staff equal accessto in-service training and professional seminars and workshops

• To put in place workplace initiatives that promotes flexibility foremployees.

OH&SOur Occupational Health and Safety Committee comprise membershipsfrom all areas of our agency, and meets on a monthly basis. During theyear committee members performed regular Safety Audits and evaluateall reported accidents and incidents. OH&S training continues to beoffered to all staff, in particular for CPR, infection control, manual handlingand fire safety. Our Area Representatives undertook their one-dayupgrades with new representatives undertaking the five-day OH&Straining course.

11Annual Report 2014

Senior Appointments During 2013/14 there were four changes to Senior Management. Carolyn Shaw was appointed as Human Resource Manager. Robyn Stefanek was appointed as Nurse Unit Manager, Acute Services,replacing Tracey Webster. Paula Sutherland received an interimappointment to Nurse Unit Manager in District Nursing. Debbie Tremletthas taken extended leave after which she will return to the role of NurseUnit Manager in Caladenia Nursing Home, replacing the interim NUM,Deb Pickering whose contract will expire in August 2014.

Medical StaffMedical services are provided by contracted Visiting Medical Officers. Wehave been fortunate in recent years to attract appropriate skilled GPs(now thirty-three) to cover our acute medical service needs and ourincreased requirements in the Emergency Department. We are alsofortunate to have appointed twenty-one specialist practitioners forsurgical services, obstetrics, anesthetics and oncology. Of particular noteat June 2014 KDH has six obstetricians as part of the roster to supportmaternity services.

TrainingOur Education Committee meets regularly each year to formally planeducation programs for the total agency. Senior management alsoidentifies general training needs for each department. The training needsof individual staff are identified and discussed as part of the annual StaffAppraisal process.

Succession PlanningSuccession Planning continues to be an important focus within ouragency. Each unit or department manager has in place a HumanResources Plan for their department. This plan includes an evaluation oftheir workforce need and strategies to assist with succession planning forall levels of staff within their areas.

Employment StatisticsWorkforce data is provided to Department of Health and State ServicesAuthority as directed. Summary data is provided below:

NNuummbbeerr ooff EEmmppllooyyeeeess @@ 3300tthh JJuunnee,, 22001144

2013/2014 2012/2013

2013/2014 2012/2013

MMaallee FFeemmaallee TToottaall MMaallee FFeemmaallee TToottaallFull Time 9 13 22 9 9 18Part Time 5 186 192 3 187 190

14 199 213 12 196 208TToottaallCasual Employees – 30 as at 30th June, 2013

EEqquuiivvaalleenntt FFuullll--ttiimmee SSttaaffff @@ 3300tthh JJuunnee,, 22001144

MMaallee FFeemmaallee TToottaall MMaallee FFeemmaallee TToottaallFull Time 9.00 22.00Part TimeTToottaall

2.9811.98

112.53125.53

115.51137.51

9.00 9.00 18.002.64

11.64

106.27115.27

108.91126.91

13..00

Paid Equivalent Full Time Staff Classification 2013/2014 2011/2012 2010/2011 2009/2010 Nursing 87.18 Admin/Clerical 11.76 15.17 Medical Support 10.87 Hotel/Allied 25.70 Sess. Clinical 2.00

77.86

11.10 20.71

2.04

Total 137.51

2012/2013

126.91

10.66 75.24

0.00 38.19

0.00

124.09

14.21 72.57

0.72 31.50

0.00

119.00

10.36 71.42

0.72 34.47

0.00

116.97

Attestation on Data AccuracyI, Bart Ruyter certify that The Kilmore & District Hospital has put inplace appropriate internal controls and processes to ensure that theDepartment of Health is provided with data that reflects actualperformance. The Kilmore & District Hospital has critically reviewedthese controls and processes during the year.

Bart Ruyter KilmoreAccountable Officer 11th August 2014

Attestation on Compliance withAustralian/New Zealand RiskManagement Standard

I, Bart Ruyter certify that The Kilmore & District Hospital has riskmanagement processes in place consistent with the Australian/NewZealand Standard and an internal control system is in place thatenables the executives to understand, manage and satisfactorilycontrol risk exposures. The Audit Committee verifies this assuranceand that the risk profile of The Kilmore & District Hospital has beencritically reviewed within the last 12 months.


Attestation on Compliance with theMinisterial Standing Direction 4.5.5.1 -InsuranceI, Bart Ruyter certify that The Kilmore & District Hospital has compliedwith Ministerial Direction 4.5.5.1 - Insurance.


As can be seen from the above tables, Kilmore & District Hospital ispredominately staffed by part time employees, the overwhelming majoritybeing female. The average employment is 24.5 hours per week. The tablebelow shows a slight increase in staffing levels over the last 12 months,mainly due to growth in maternity and surgical services.


BACKGROUND

HospitalOn the 17th November 1864, The Kilmore Hospital was incorporatedunder the provisions of the Hospitals & Charities Act. Notice of thisincorporation was published in the Government Gazette No. 135/1864Page 2996.

On the 23rd November 1988, The Kilmore Hospital changed its name toThe Kilmore and District Hospital to reflect the growing area that itserves. Notice of this change was published in the Government GazetteNo. 45/1988 Page 3497.

In the year 1858 the community raised funds of 1269 pounds and theGovernment granted 500 pounds for the building of a hospital. In 1860the number of patients treated was 86. The original hospital is thesecond oldest of Victoria’s District Hospitals and the most intact.

In 1975 the Hospital 20-bed ward was completed and on the 29th July1984 the extensions including the services wing and clinical supportfacilities were officially opened.

A major redevelopment project costing $2.2 million was completed onthe 26th June 1995. Works included the renovations of existingoperating theatre, general administration, the provision of new birthingsuites, wards, a new accident and emergency area and 10 additionalacute patient beds. This has increased bed capacity by 50% from 20 to30 beds. Having 8 single, 3 double and 4 four-bed wards, most withensuite facilities, enhances flexibility in the placement of patients.

In 2002 an extension was build at the rear of the hospital toaccommodate a dedicated reception for our radiology service, and includecapacity for the new CT scanner and ultrasound service. 2007 saw arenovation of the Theatre Suite to ensure compliance with infectioncontrol standards and efficiency of patient service.

2008 saw the completion of a dedicated Oncology Unit andredevelopment of the administration area. Demand for oncology servicesand particularly chemotherapy has continues to grow in line with ourgrowing and ageing population. The reception area now houses all ourcentral administration staff, while providing a discreet office for theadmission of patients and privacy to the acute ward.

This year we treated 2,339 inpatients, and 8,531 Urgent Careattendances.

“Caladenia” Nursing HomeOn the 8th January 1987, The Kilmore Nursing Home Society wasregistered as a benevolent society under the provisions of the Hospitaland Charities Act 1958 and this was subsequently repeated on the 14thMay 1989 with the proclamation of the Health Services Act 1988. As aresult, on and from the 31st October 1989, The Kilmore and DistrictNursing Home Society Inc., is incorporated under the Associationsincorporation Act 1981.

When approval in principle to build Caladenia was received on the 25thMay 1988, we had funds in hand of just $12,770. Following a massive

fundraising appeal and FANTASTIC community support, a total of$1,502,730 was received over a three year period in cash donations.$768,000 was received from the Commonwealth Government. The totalcost of the project was $2,740,000, and was broadly represented by$2,450,000 building construction costs, $248,000 plant, furniture andequipment, plus $42,000 fundraising, administrative and setting-upexpenses. The construction of our 30-bed Nursing Home was completedduring the 1990/91 financial year.

Caladenia provides long term nursing care and accommodation for agedor disabled persons from within our community. Accommodation hasbeen designed to provide care in a homely atmosphere, with allbedrooms overlooking a garden setting. The design of 16 single and sevendouble bedrooms further enhances privacy and flexibility in the placementof residents. A feature of the building is the large living/dining area andsmaller sitting areas specifically designed to encourage participation andinvolvement by relatives and friends with the resident.

On the 17th June 1991, the first of our elderly residents moved in,culminating several years of work, planning, fundraising, building andcaring. Caladenia was officially opened on the 11th August 1991. It ispleasing to provide a local service for our district residents. Occupancyhas fluctuated substantially in the past twelve months, with averageoccupancy for the year at 83%.

“Dianella Village” Aged Care HostelOn the 20th December 1994, the Commonwealth Department of HumanServices and Health granted approval in principle for a 30-bed Aged CareHostel. The approval had followed two years of submissions based onneed, population growth, demographics, efficiency, and financial viability.The Hostel was to be an integral part of our overall development concept,being the final phase in the provision of comprehensive health care andaccommodation for our aged.

Again a major fundraising appeal was launched in 1995 and withmagnificent community support cash donations received to date total$707,000. Together with the Commonwealth Government $847,000,Department of Veterans Affairs $160,000, Hospital contribution andborrowings, the total project funding and cost was $2.1m. This wasbroadly represented as $1,846,000 building costs, landscaping andearthworks $50,000, furniture furnishings and equipment $125,000 plus$44,000 fundraising expenses.

Resident accommodation is enhanced by single bedrooms, which alongwith ensuite facilities ensure privacy and placement flexibility. Featuresinclude a bright and tastefully decorated main living/dining room, tea andsitting rooms in each of the three houses, spa bathroom with federationdome skylight, hairdressing salon, great kitchen for freshly cooked meals,gas burning log fireplaces in each of the sitting rooms and landscapedgardens. Personalized care and attention (including Respite Care) isprovided with every effort made to assist our aged and disabled residentsto feel “at home”.

On the 18th August 1997 the first of our elderly residents moved in andDianella Village was officially opened on the 21st August 1997.Occupancy has fluctuated substantially in the past twelve months, withaverage occupancy for the year at 91%.


14 13

18,739.023,905.05,166.0

7,723.0

31,958.06,814.0

25,144.0

25,144.0

SERVICE ACTIVITY DATA 2013/2014


Certification

Auditor General’s Report



Financial Statements

Kilmore & District HospitalComprehensive Operating StatementFor the financial year ended 30 June 2014

NOTE Total Total

2014 2013$'000 $'000

Revenue from Operating Activities 2 15,533 15,535Revenue from Non-Operating Activities 2 966 928Employee Expenses 3 (11,947) (11,488)Non Salary Labour Costs 3 (1,705) (1,389)Supplies and Consumables 3 (1,420) (1,254)Other Expenses from Continuing Operations 3 (2,353) (2,293)Net Result Before Capital & Specific Items (926) 39

Capital Purpose Income 2 7,406 2,545Depreciation 3 (1,314) (1,310)

6,092 1,235

NET RESULT FOR THE YEAR 5,166 1,274

Other Comprehensive IncomeItems that will not be reclassified to net resultChanges in physical asset revaluation surplus 10,656 -

COMPREHENSIVE RESULT 15,822 1,274

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

Kilmore & District HospitalBalance SheetAs at 30 June 2014

Total Total

NOTE 2014 2013$'000 $'000

Current AssetsCash and Cash Equivalents 5 1,964 898Receivables 6 850 491Investments and Other Financial Assets 7 3,375 2,999Inventories 8 123 129Other Assets 9 13 7Total Current Assets 6,325 4,524

Non-Current AssetsReceivables 6 91 358Property, Plant & Equipment 10 25,542 10,564Total Non-Current Assets 25,633 10,922TOTAL ASSETS 31,958 15,446

Current LiabilitiesPayables 11 673 684Provisions 12 2,752 2,494Other Current Liabilities 14 3,046 2,570Total Current Liabilities 6,471 5,748

Non-Current LiabilitiesProvisions 12 343 376Total Non-Current Liabilities 343 376TOTAL LIABILITIES 6,814 6,124NET ASSETS 25,144 9,322

EQUITYAsset Revaluation Reserve 15a 17,421 6,765Contributed Capital 15b 4,181 4,181Accumulated Surpluses/(Deficits) 15c 3,542 (1,624)TOTAL EQUITY 14d 25,144 9,322

Contingent Liabilities and Contingent Assets Note 19Commitments 18






Kilmore & District HospitalStatement of Changes in EquityFor the Year Ended 30 June 2014

Total Property, Plant& EquipmentRevaluation

Surplus

Contributionsby Owners

AccumulatedSurpluses/(Deficits)

Total

Note $'000 $'000 $'000 $'000Balance at 30 June 2012 6,765 4,181 (2,898) 8,048

Net result for the year - - 1,274 1,274

Balance at 30 June 2013 6,765 4,181 (1,624) 9,322

Net result for the year - - 5,166 5,166Other comprehensive income for the year 10,656 - - 10,656

Balance at 30 June 2014 17,421 4,181 3,542 25,144


Kilmore & District HospitalCash Flow StatementFor the financial year ended 30 June 2014

NoteTotal Total2014 2013$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESOperating Grants from Government 13,387 13,604Patient and Resident Fees Received 1,571 1,740GST Received from/(paid to) ATO 640 416Recoupment from private practice for use of hospital facilities 25 24Other Receipts 1,198 1,237Total Receipts 16,821 17,021Employee Expenses Paid (11,604) (11,609)Fee for Service Medical Officers (1,836) (1,416)Payment for Supplies & Consumables (3,904) (3,617)Total Payments (17,344) (16,642)Cash Generated from Operations (523) 379

Capital Grants from Government 7,073 2,230Capital Donations and Bequests Received 90 97

NET CASH FLOW FROM / (USED IN) OPERATING ACTIVITIES 16 6,640 2,706

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of InvestmentsDisposal of Investments 95 (15)Purchase of Non Financial Assets (5,620) (2,121)Proceeds from Sale of Non-Financial Assets - 74NET CASH FLOW FROM / (USED IN) INVESTING ACTIVITIES (5,525) (2,062)

CASH FLOWS FROM FINANCING ACTIVITIESContributed Capital from Government - -NET CASH FLOW FROM / (USED IN) FINANCING ACTIVITIES - -NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS HELD 1,115 644

CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 828 184CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 5 1,943 828





NNoottee 11:: SSuummmmaarryy ooff SSiiggnniiffiiccaanntt AAccccoouunnttiinngg PPoolliicciieess

These annual financial statements represent the audited general purpose financial statements for The Kilmore & District Hospital for the period ending 30 June 2014. The purpose

of the report is to provide users with information about the Health Services’ stewardship of resources entrusted to it.

((aa)) SSttaatteemmeenntt ooff ccoommpplliiaannccee

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 Hospital is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” Hospitals under the AASs.

The annual financial statements were authorised for issue by the Board of The Kilmore & District Hospital on 19 August 2014

((bb)) BBaassiiss ooff aaccccoouunnttiinngg pprreeppaarraattiioonn aanndd mmeeaassuurreemmeenntt

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring

that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2014, and the comparative information presented in

these financial statements for the year ended 30 June 2013.

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

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

The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets,

liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they

relate, regardless of when cash is received or paid.

The financial statements are prepared in accordance with the historical cost convention, except for:

non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent

accumulated depreciation and subsequent impairment losses. Revaluations are made and are re-assessed with sufficient regularity to ensure that the carrying amounts

do not materially differ from their fair values;

available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised (i.e. other comprehensive income –

items that may be reclassified subsequent to net result).

the fair value of assets other than land is generally based on their depreciated replacement value.

Judgments, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates

and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the

circumstances. Actual results may differ from these estimates.

Consistent with AASB 13 Fair Value Measurement, Kilmore & District Hospital determines the policies and procedures for both recurring fair value measurements such asproperty, 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 thelowest 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, Kilmore & District Hospital has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the assetor liability and the level of the fair value hierarchy as explained above.

In addition, Kilmore & District Hospital determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level inputthat is significant to the fair value measurement as a whole) at the end of each reporting period.

The Valuer-General Victoria (VGV) is Kilmore & District Hospital ’s independent valuation agency.

Kilmore & District Hospital, in conjunction with VGV monitors the changes in the fair value of each asset and liability through relevant data sources to determine whetherrevaluation is required.

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 therevision 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 bymanagement in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reportingperiod, relate to:

§ the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(k);

§ superannuation expense (refer to note 1(h)); and

§ actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discountrates (refer to Note 1(l).

The Kilmore & District HospitalNotes to the Financial Statements

30 June 2014

((cc)) RReeppoorrttiinngg EEnnttiittyy

The financial statements include all the controlled activities of the Kilmore & District Hospital.

Its principal address is:

Rutledge St

Kilmore

Victoria 3764.

A description of the nature of the Kilmore & District Hospital’s operations and its principal activities is included in the report of operations, which does not form part of thesefinancial statements.

Objectives and fundingThe Kilmore & District Hospital’s overall objective is to provide the community with high quality progressive health care and accommodation, as well as improve the quality of life toVictorians.

The Kilmore & District Hospital is predominantly funded by accrual based grant funding for the provision of outputs.

((dd)) PPrriinncciipplleess ooff CCoonnssoolliiddaattiioonn

Associates and joint ventures

Associates and joint ventures are accounted for in accordance with the policy outlined in Note 1(i) Financial Assets.

Details of the joint venture are set out in note 21.

Jointly controlled assets or operations

Interests in jointly controlled assets or operations are not consolidated by the Kilmore & District Hospital, but are accounted for in accordance with the policy outlined in Note 1(j)

Financial Assets.

((ee)) SSccooppee aanndd pprreesseennttaattiioonn ooff ffiinnaanncciiaall ssttaatteemmeennttss

Fund Accounting

Kilmore & District Hospital operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. The Kilmore & District Hospital’s

Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds.

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

Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and includes Residential Aged Care

Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community

Initiatives (H&CI) are funded by the Hospital'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 Kilmore & District Hospital 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 2b to the

financial statements.

The Residential Aged Care service 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 the

Kilmore & District Hospital. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, expenditure using

capital purpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of these items is made to enhance matching of income

and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The ‘Net Result Before Capital & Specific Items’

is used by the management of the Kilmore & District Hospital, the Department of Health and the Victorian Government to measure the ongoing performance of Health Services in

operating hospital services.

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

v 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.

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

o Voluntary departure packages

o Write-down of inventories

o Non-current asset revaluation increments/decrements

o Diminution/impairment of investments

o Restructuring of operations (disaggregation/aggregation of Health Services)

o Litigation settlements

o Non-current assets lost or found

o Forgiveness of loans

o Reversals of provisions

o Voluntary changes in accounting policies (which are not required by an accounting standard or other authoritative pronouncement of the Australian Accounting

Standards Board)



30 June 2014


v 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)

v Depreciation as described in Note 1 (h)

v Assets provided or received free of charge (refer to Note 1 (h) and (i)); and

v 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 changes in equity from opening balance at the beginning of the reporting period to the

closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other

comprehensive income.

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.

For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current borrowings in the balance sheet.

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

(f) Change in accounting policies

AASB 13 Fair Value Measurement

AASB 13 establishes a single source of guidance for all fair value measurements. AASB 13 does not change when a health service is required to use fair value, but ratherprovides guidance on how to measure fair value under Australian Accounting Standards when fair value is required or permitted. The Kilmore & District Hospital hasconsidered the specific requirements relating to highest and best use, valuation premise, and principal (or most advantageous) market. The methods, assumptions,processes and procedures for determining fair value were revised and adjusted where applicable. In light of AASB 13, the Kilmore & District Hospital has reviewed the fairvalue principles as well as its current valuation methodologies in assessing the fair value, and the assessment has not materially changed the fair values recognised.

AASB 13 has predominantly impacted the disclosures of the Kilmore & District Hospital. It requires specific disclosures about fair value measurements and disclosures of fairvalues, some of which replace existing disclosure requirements in other standards, including AASB 7 Financial Instruments: Disclosures.

The disclosure requirements of AASB 13 apply prospectively and need not to be provided for comparative periods, before initial application. Consequently, comparatives ofthese disclosures have not been provided for 2012-13, except for financial instruments, of which the fair value disclosures are required under AASB 7 Financial InstrumentsDisclosures.

AASB 119 Employee Benefits

In 2013-14, the Kilmore & District Hospital has applied AASB 119 Employee Benefits (Sep 2011, as amended), and related consequential amendments for the first time.

The revised AASB 119 changes the accounting for defined benefit plans and termination benefits. The most significant change relates to the accounting for changes indefined benefit obligation and plan assets. As the current accounting policy is for the Department of Treasury and Finance to recognise and disclose the State’s definedbenefit liabilities in its financial statements, changes in defined benefit obligations and plan assets will have limited impact on the health service.

The revised standard also changes the definition of short-term employee benefits. These were previously benefits that were expected to be settled within 12 months after theend of the reporting period in which the employees render the related service, however, short-term employee benefits are now defined as benefits expected to be settledwholly within 12 months after the end of the reporting period in which the employees render the related service. As a result, accrued annual leave balances which werepreviously classified as short-term employee benefits no longer meet this definition and are now classified as long-term employee benefits. This has resulted in a change ofmeasurement for the annual leave provision from an undiscounted to discounted basis.

The Kilmore & District Hospital believes that the change in classification has not materially altered its measurement of the annual leave provision

((gg)) IInnccoommee ffrroomm ttrraannssaaccttiioonnss

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 the Kilmore & District

Hospital and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance.

Amounts disclosed as revenue 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 Hospital

gains control of the underlying assets irrespective of whether conditions are imposed on the Hospital’s use of the contributions.

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

Indirect Contributions from the Department of Health

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

– Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the Metropolitan Health and Aged

Care Services Division Hospital Circular 05/2013 (update for 2012-13).

Patient and Resident Fees

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

Private Practice Fees

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


30 June 2014

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 interest over the relevant period.

Sale of investments

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

Fair value of assets and services received free of charge or for nominal consideration

Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions

or conditions are imposed over the use of the contributions, unless received from another Health Service or agency as a consequence of a restructuring of administrative

arrangements. In the latter case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably

determined and the services would have been purchased if not donated.

((hh)) EExxppeennssee rreeccooggnniittiioonn

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 plansIn 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 Hospital to the

superannuation plans in respect of the services of current Hospital staff during the reporting period. Superannuation contributions are made to the plans based on the relevant

rules of each plan, and are based on actuarial advice.

Employees of the Kilmore & District Hospital are entitled to receive superannuation benefits and the Kilmore & District Hospital 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 Kilmore & District Hospital 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.

Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful

lives.

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

2014 2013Buildings- Structure Shell Building Fabric 45 to 60 years 45 to 60 years- Site Engineering Services and Central Plant 20 to 30 years 20 to 30 yearsCentral Plant- Fit Out 20 to 30 years 20 to 30 years- Trunk Reticulated Building Systems 30 to 40 years 30 to 40 yearsPlant & Equipment Up to 10 years Up to 10 yearsMedical Equipment Up to 10 years Up to 10 yearsComputers and Communication 3 years 3 yearsFurniture and Fitting Up to 10 years Up to 10 yearsMotor Vehicles Up to 10 years Up to 10 years

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

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



30 June 2014


Finance Costs

Finance costs are recognised as expenses in the period in which they are incurred.

Finance costs include:

– interest on bank overdrafts and short-term and long-term borrowings;

– amortisation of discounts or premiums relating to borrowings;

– amortisation of ancillary costs incurred in connection with the arrangement of borrowings; and

– finance charges in respect of finance leases recognised in accordance with AASB 117 Leases.

Grants and other transfersGrants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting period in which they are paid or payable. They include

transactions such as: grants, subsidies and personal benefit payments made in cash to individuals.

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

Supplies and consumablesSupplies 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 debtsRefer to Note 1 (k) Impairment of financial assets.

Fair value of assets, services and resources provided free of charge or for nominal considerationContributions 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.

((ii)) OOtthheerr ccoommpprreehheennssiivvee iinnccoommee

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 assetsNet gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Revaluation gains/(losses) of non-financial physical assetsRefer to Note 1(k) Revaluations of non-financial physical assets.

Net gain/(loss) on disposal of non-financial assetsAny gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying value of the asset at

the time.

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

o realised and unrealised gains and losses from revaluations of financial instruments at fair value;

o impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1 (j)); and

o disposals of financial assets and derecognition of financial liabilities

Impairment of non-financial assetsGoodwill and intangible assets with indefinite useful lives (and intangible assets not available for use) are tested annually for impairment and whenever there is an indication thatthe asset may be impaired. Refer to Note 1 (k) Assets.

Revaluations of financial instrument at fair valueRefer 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 incomeOther gains/(losses) include:

a. the revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and

b. transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.

((jj)) FFiinnaanncciiaall IInnssttrruummeennttss

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 Kilmore & District Hospital’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.


30 June 2014

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(l)), term deposits with maturity greater than three months, trade receivables, loans and other

receivables, but not statutory receivables.

Held-to-maturity investments

If the Hospital has the positive intent and ability to hold nominated investments to maturity, then such financial assets may be classified as held-to-maturity. Held-to-maturity

financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity financial assets are measured

at amortised cost using the effective interest method, less any impairment losses.

The Hospital makes limited use of this classification because any sale or reclassification of more than an insignificant amount of held-to-maturity investments not close to their

maturity, would result in the whole category being reclassified as available-for-sale. The Hospital would also be prevented from classifying investment securities as held-to-maturity

for the current and the following two financial years.

The held-to-maturity category includes certain term deposits and debt securities for which the Hospital intends to hold to maturity.

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 Hospital’s contractual payables, deposits held and advances received, and interest-bearing

arrangements other than those designated at fair value through profit or loss.

((kk)) AAsssseettssCash 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 the debt may not be collected and

bad debts are written off when identified.

Investments and Other Financial Assets

Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the

timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.

Investments are classified in the following categories:

- Financial assets at fair value through profit or loss;

- Held to maturity;

- Loans and receivables; and

- Available-for-sale financial assets.



30 June 2014


The Kilmore & District Hospital classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management

determines the classification of its other financial assets at initial recognition.

The Kilmore & District Hospital assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment.

Inventories

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

depreciable assets.

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

and net realisable value.

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

The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical

obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence

occurs when an item no longer functions the way it did when it was first acquired.

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

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

Non-financial Physical Assets Classified as Held for Sale

Non-financial physical assets and disposal groups and related liabilities are treated as current and are classified as held for sale if their carrying amount will be recovered through a

sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable, the asset’s sale (or disposal group) is expected to be

completed within 12 months from the date of classification, and the asset is available for immediate use in the current condition.

Non-financial physical assets (including disposal groups) classified as held for sale are treated as current and are measured at the lower of carrying amount and fair value less

costs of disposal, and are not subject to depreciation or amortisation.

Property, plant and equipment

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for

no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government are transferred at their carrying amount.

More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 10 Property, plant and equipment.

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 physical restrictions imposed on theasset, 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 nottaken into account until it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assetswill 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 historicalcost 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 103E Non-current physical assets. This revaluation process normally occurs at

least every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values.

Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation

increments or decrements arise from differences between an asset’s carrying value and fair value.

Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly to the asset revaluation surplus, except that, to the extent that an increment

reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result.

Revaluation decrements are recognised in ‘other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of

property, plant and equipment.

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

assets in different classes.

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

In accordance with FRD 103E, the Kilmore & District Hospital’s non-current physical assets were assessed to determine whether revaluation of the non-current physical assets

was required.

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 AssetsAny gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement. Refer to note 1(i) – ‘comprehensive income’.


30 June 2014

Impairment of Non-Financial AssetsGoodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is

an indication that the asset may be impaired.

All other non-financial assets are assessed annually for indications of impairment, except for:

inventories;

financial assets; and

non-current physical assets held for sale.

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 reversal in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be

increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that

would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the

contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount

for assets held primarily to generate net cash 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.

Investments accounted for using the equity method

Associates are those entities over which the Kilmore & District Hospital exercises significant influence, but not control.

Investments in associates are accounted for using the equity method of accounting. Under the equity method for accounting, the Hospital’s share of the post-acquisition profits or

losses of associates is recognised in the net result and its share of post-acquisition changes in revaluation surpluses and any other reserves, are recognised in both the

comprehensive operating statement and the statement of changes in equity. The cumulative post acquisition movements are adjusted against the cost of the investment.

Joint ventures are contractual arrangements between the Kilmore & District Hospital and one or more other parties to undertake an economic activity that is subject to joint control.

Joint control only exists when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).

Interests in jointly controlled entities are accounted for in the financial statements using the equity method, as applied to investments in associates.

Investments in jointly controlled assets and operations

In respect of any interest in jointly controlled assets, the Kilmore & District Hospital recognises in the financial statements:

its share of jointly controlled assets;

any liabilities that it had incurred;

its share of liabilities incurred jointly by the joint venture;

any income earned from the selling or using of its share of the output from the joint venture; and

any expenses incurred in relation to being an investor in the joint venture.

For jointly controlled operations the Kilmore & District Hospital recognises:

the assets that it controls;

the liabilities that it incurs;

expenses that it incurs; and

the share of income that it earns from selling outputs of the joint venture

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

the rights to receive cash flows from the asset have expired; or

the Hospital retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass

through’ arrangement; or

the Hospital has transferred its rights to receive cash flows from the asset and either:

(a) has transferred substantially all the risks and rewards of the asset; or

(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Hospital has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Hospital’s

continuing involvement in the asset.

Impairment of financial assets

At the end of each reporting period the Kilmore & District Hospital assesses whether there is objective evidence that a financial asset or group of financial asset is impaired. All

financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed. Bad debt

written off by mutual consent and the allowance for doubtful debts are classified as ‘other comprehensive income’ in the net result.

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

interest rate.

Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has been less than its

cost price for a period of 12 or more months, the financial asset is treated as impaired.

In order to determine an appropriate fair value as at 30 June 2014 for its portfolio of financial assets, the Hospital obtained a valuation based on the best available advice using an

estimated through a reputable financial institution. This value was compared against valuation methodologies provided by the issuer as at 30 June 2014. These methodologies

were critiqued and considered to be consistent with standard market valuation techniques.



30 June 2014

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using

estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

Net gain/(loss) on financial instruments

Net gain/(loss) on financial instruments includes:

- realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading;

- impairment and reversal of impairment for financial instruments at amortised cost; and

- disposals of financial assets and derecognition of financial liabilities

Revaluations of financial instruments at fair value

The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets.

((ll)) LLiiaabbiilliittiieessPayables

Payables consist of:

contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to the Hospital prior to the end of the

financial year that are unpaid, and arise when the Hospital becomes obliged to make future payments in respect of the purchase of those goods and services.

The normal credit terms for accounts payable are usually Nett 30 days.

statutory payables, such as goods and services tax and fringe benefits tax payables.

Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are

recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost,

because they do not arise from a contract.

Provisions

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

reliably.

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

uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of

those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.

When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually

certain that recovery will be received and the amount of the receivable can be measured reliably.

Employee benefits

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 ssalaries, annual leave, sick leave and accrued days off

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave are all recognised in the provision for employee benefits

as ‘current liabilities’ because the Kilmore & District Hospital does not have an unconditional right to defer settlements of these liabilities.

Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:

Undiscounted value – if the Kilmore & District Hospital expects to wholly settle within 12 months; or

Present value - if the Kilmore & District Hospital does not expect to wholly settle within 12 months.

Long Service Leave (LSL)Liability for LSL is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the Hospital does not expect to settle the liability within 12

months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

Undiscounted value – it the Kilmore & District Hospital expects to settle within 12 months; and

Present value – if the Kilmore & District Hospital 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 tochanges 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 Kilmore & District Hospital recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according toa detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits fallingdue more than 12 months after the end of the reporting period are discounted to present value.



30 June 2014


On-Costs

Provisions for on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits.

Superannuation liabilities

The Kilmore & District Hospital does not recognise any unfunded defined benefit liability in respect of the superannuation plans because the Kilmore & District Hospital has no legal

or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such

an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is

recognised as an expense in the estimated consolidated comprehensive operating statement.

((mm)) EEqquuiittyy

Contributed Capital

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119A Contributions by Owners,

appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions to or distributions by owners

that have been designated as contributed capital are also treated as contributed capital.

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

through the comprehensive operating statement.

Property, Plant & Equipment Revaluation Surplus

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

((nn)) CCoommmmiittmmeennttssCommitments 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.

((oo)) CCoonnttiinnggeenntt aasssseettss aanndd ccoonnttiinnggeenntt lliiaabbiilliittiieessContingent 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.

((pp)) GGooooddss aanndd SSeerrvviicceess TTaaxx ((““GGSSTT””))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 for expenditure and contingent assets and liabilities are presented on a gross basis.

((qq)) EEvveennttss aafftteerr tthhee rreeppoorrttiinngg ppeerriiooddAssets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Hospital and other parties,

the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period.

Adjustments are made to amounts recognised in the financial statements for events which occur between the end of the reporting period and before the date the financial

statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between

the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period

that are considered to be of material interest.

((rr)) AAAASSss IIssssuueedd tthhaatt aarree nnoott yyeett eeffffeeccttiivveeCertain new Australian accounting standards have been published that are not mandatory for the 30 June 2014 reporting period. DTF assesses the impact of all these new

standards and advises the Health Service of their applicability and early adoption where applicable.


30 June 2014


As at 30 June 2014, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements

for reporting periods commencing after the stated operative dates as detailed in the table below. The Kilmore & District Hospital has not and does not intend to adopt these

standards early.

Standard/Interpretation Summary Applicable for annualreporting periods

beginning on

Impact on public sector entity financial statements

AASB 9 Financial Instruments This standard simplifies requirements for the classification andmeasurement of financial assets resulting from Phase 1 of theIASB’s project to replace IAS 39 Financial Instruments: Recognitionand Measurement (AASB 139 Financial Instruments: Recognitionand Measurement).

1 Jan 2017 The preliminary assessment has identified that the financial impact ofavailable for sale (AFS) assets will now be reported through othercomprehensive income (OCI) and no longer recycled to the profit andloss.

While the preliminary assessment has not identified any materialimpact arising from AASB 9, it will continue to be monitored andassessed.

AASB 10 ConsolidatedFinancial Statements

This Standard forms the basis for determining which entitiesshould be consolidated into an entity’s financial statements. AASB10 defines ‘control’ as requiring exposure or rights to variablereturns and the ability to affect those returns through power overan investee, which may broaden the concept of control for publicsector entities.The AASB has issued an Australian Implementation Guidance forNot-for-Profit Entities – Control and Structured Entities thatexplains and illustrates how the principles in the Standard applyfrom the perspective of not-for-profit entities in the private andpublic sectors.

1 Jan 2014(not-for-profitentities)

For the public sector, AASB 10 builds on the control guidance thatexisted in AASB 127 and Interpretation 112 and is not expected tochange which entities need to be consolidated.

Ongoing work is being done to monitor and assess the impact of thisstandard.

AASB 11 Joint Arrangements This Standard deals with the concept of joint control, and sets outa new principles-based approach fordetermining the type of joint arrangement that exists and thecorresponding accounting treatment. The new categories of jointarrangements under AASB 11 are more aligned to the actual rightsand obligations of the parties to the arrangement.


Based on current assessment, entities already apply the equity methodwhen accounting for joint ventures. It is anticipated that there would beno material impact. Ongoing work is being done to monitor and assessthe impact of this standard.

AASB 12 Disclosure ofInterests in Other Entities

This Standard requires disclosure of information that enablesusers of financial statements to evaluate the nature of, and risksassociated with, interests in other entities and the effects of thoseinterests on the financial statements. This Standard replaces thedisclosure requirements in AASB 127 Separate FinancialStatements and AASB 131 Interests in Joint Ventures.


The new standard is likely to require additional disclosures and ongoingwork is being done to determine the extent of additional disclosurerequired.

AASB 127 Separate FinancialStatements

This revised Standard prescribes the accounting and disclosurerequirements for investments in subsidiaries, joint ventures andassociates when an entity prepares separate financial statements.


Current assessment indicates that there is limited impact on VictorianPublic Sector entities. Ongoing work is being done to monitor andassess the impact of this standard.

AASB 128 Investments inAssociates and Joint Ventures

This revised Standard sets out the requirements for theapplication of the equity method when accounting forinvestments in associates and joint ventures.


Current assessment indicates that there is limited impact on VictorianPublic Sector entities. Ongoing work is being done to monitor andassess the impact of this standard.

AASB 1055 BudgetaryReporting

AASB 1055 extends the scope of budgetary reporting that iscurrently applicable for the whole of government and generalgovernment sector (GGS) to NFP entities within the GGS, providedthat these entities present separate budget to the parliament.

1 July 2014 [If separate budget is presented to the parliament]:The entity will be required to restate in the financial statements thebudgetary information in accordance with the presentation formatprescribed in Australian Accounting Standards and explain thesignificant variances from the original budget.[If separate budget is not presented to the parliament]:This Standard is not applicable as no budget disclosure is required.

AASB 1056 SuperannuationEntities

AASB 1056 replaces AAS 25 Financial Reporting by SuperannuationPlans. The standard was developed in light of changes in recentyears, developments in the superannuation industry andAustralia’s adoption of IFRS.

1 July 2016 The standard was issued in June 2014. While preliminary assessmenthas not identified any material impact arising from AASB 1056, furtherwork to assess the impact of this standard will be undertaken.

((ss)) CCaatteeggoorryy ggrroouuppssThe Kilmore & District Hospital has used the following category groups for reporting purposes for the current and previous financial years.

Admitted Patient Services (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are delivered in public hospitals,

or free standing day hospital facilities, or alcohol and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids.

Emergency Department Services (EDS) comprises all recurrent health revenue/expenditure on emergency department services that are available free of charge to public

patients.

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

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-

licensed residential aged care services in receipt of supplementary funding from DH under the mental health program. It excludes all other residential services funded under the

mental health program, such as mental health funded community care units (CCUs) and secure extended care units (SECs).

Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately classified above, including:

Public Health Services including Laboratory testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Kooris liaison officers, immunisation and screening

services, Drugs services including drug withdrawal, counselling and the needle and syringe program, Dental Health services including general and specialist dental care, school

dental services and clinical education, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs

including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls

in this category group.


30 June 2014

Note 2: Revenue

H.S.A. H.S.A. Non Non Total TotalH.S.A H.S.A

2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000

Revenue from Operating ActivitiesGovernment Grants

- Department of Health 10,925 10,229 - - 10,925 10,229- Commonwealth Government

- Residential Aged Care Subsidy 2,553 3,215 - - 2,553 3,215- Commonwealth Grant - Health Network Funding Adjustment - 138 - - - 138

Total Government Grants 13,478 13,582 - - 13,478 13,582

Indirect Contributions by Department of Health- Insurance 12 40 - - 12 40- Long Service Leave 182 72 - - 182 72

Total Indirect Contributions by Department of Health 194 112 - - 194 112

Patient and Resident Fees- Patient and Resident Fees (refer note 2b) 429 558 - - 429 558- Residential Aged Care (refer note 2b) 1,091 1,101 - - 1,091 1,101

Total Patient and Resident Fees 1,520 1,659 - - 1,520 1,659

Hume Rural Health Alliance 153 158 - - 153 158Northern Hospital Contracted Throughput 91 - - - 91 -Seymour Health Maternity Throughput 72 - - - 72 -Recoupment from Private Practice for Use of Hospital Facilities 25 24 - - 25 24Total Revenue from Operating Activities 15,533 15,535 - - 15,533 15,535

Commercial Activities & Specific Purpose FundsCatering - - 131 147 131 147Radiology - - 778 765 778 765Other - - 57 16 57 16Total Commercial Activities & Specific Purpose Funds - - 966 928 966 928

Capital Purpose IncomeState Government Capital Grants- Targeted Capital Works and Equipment - - 7,073 2,029 7,073 2,029- Other - - - 201 - 201

Donation and Bequests - - 90 97 90 97Net Gain/(Loss) from Disposal of Non Current Assets (refer note 2c) - - - (43) - (43)Capital Interest 32 33 - - 32 33Residential Accommodation Payments (refer note 2b) - - 211 228 211 228Total Capital Purpose Income 32 33 7,374 2,512 7,406 2,545

Total Revenue (refer to note 2a) 15,565 15,568 8,340 3,440 23,905 19,008

Indirect contributions by Department of Health:Department of Health makes certain payments on behalf of the Hospital (Insurance). These amounts have been brought to account indetermining the operating result for the year by recording them as revenue and expenses.

Total


Note 2a: Analysis of revenue by source

RAC Incl.Admitted Mental AgedPatients EDS Health Care Other Total

2014 2014 2014 2014 2014 2014$'000 $'000 $'000 $'000 $'000 $'000

Revenue from Services Supported by HealthServices Agreement

Government Grants- Department of Human Services 8,382 1,364 937 242 - 10,925- Commonwealth Government

- Residential Aged Care Subsidy - - 2,553 - - 2,553- Health Network Funding Adjustment - - - - - -

Indirect contributions by Department of HumanServices- Insurance 6 - 6 - - 12- Long Service Leave 155 - 27 - - 182

Capital Purpose Income (refer note 2) 16 - 16 - - 32Patient and Resident Fees (refer note 2b) 429 - 1016 75 - 1,520Recoupment from Private Practice for Use ofHospital Facilities 25 - - - - 25Hume Rural Health Alliance 153 - - - - 153Northern Hospital Contracted Throughput 91 - - - - 91Seymour Health Matenity Throughput 72 - - - - 72Total Revenue from Services Supported by Health 9,329 1,364 4,555 317 - 15,565Services Agreement

Revenue from Services Supported by Hospitaland Community InitiativesBusiness Units- Diagnostic Imaging - - - - 778 778- Catering - - - - 131 131

Capital Purpose Income - - - - 7,374 7374Donations & Bequests (non capital)Others - - - - 57 57Total Revenue from Services Supported by Hospitaland Community Initiatives - - - - 8,340 8,340

Total Revenue 9,329 1,364 4,555 317 8,340 23,905


30 June 2014



30 June 2014

Note 2c: Net gain/(loss) on disposal of non-financial assetsTotal Total

2014 2013$'000 $'000

Proceeds from Disposals of Non-Current AssetsMotor Vehicles - 74Total Proceeds from Disposal of Non-Current Assets - 74

Less: Written Down Value of Non-Current Assets SoldMotor Vehicles - (117)Total Written Down Value of Non-Current Assets Sold - (117)

Net gain/(loss) on Disposal of Non-Financial Assets - (43)


2013 2013 2013 2013 2013 2013$'000 $'000 $'000 $'000 $'000 $'000

Revenue from Services Supported by HealthServices Agreement

Government Grants- Department of Human Services 7,740 1,331 915 243 - 10,229- Commonwealth Government

- Residential Aged Care Subsidy - - 3,215 - - 3,215- Health Network Funding Adjustment 138 - - - - 138

Indirect contributions by Department of HumanServices- Insurance 20 - 20 - - 40- Long Service Leave 48 - 24 - - 72

Capital Purpose Income (refer note 2) 17 - 16 - - 33Patient and Resident Fees (refer note 2b) 558 - 1,045 56 - 1,659Recoupment from Private Practice for Use ofHospital Facilities 24 - - - - 24Hume Rural Health Alliance 158 - - - - 158Total Revenue from Services Supported by Health 8,703 1,331 5,235 299 - 15,568Services Agreement

Revenue from Services Supported by Hospitaland Community InitiativesBusiness Units- Diagnostic Imaging - - - - 765 765- Catering - - - - 147 147

Capital Purpose Income - - - - 2,512 2,512Donations & Bequests (non capital)Others - - - - 16 16Total Revenue from Services Supported by Hospitaland Community Initiatives - - - - 3,440 3,440

Total Revenue 8,703 1,331 5,235 299 3,440 19,008

Indirect contributions by Department of Health:Department of Health makes certain payments on behalf of the Hospital . These amounts have been brought to account indetermining the operating result for the year by recording them as revenue and expenses.

Note 2a: Analysis of revenue by source (Continued)

Note 2b: Patient & resident fees raisedTotal Total2014 2013

$'000 $'000Patient and Resident FeesAcute

-Inpatients 429 558Residential Aged Care

-District Nursing 75 56-Nursing Home 456 511-Hostel 458 444-TCP 102 90

Total Patient and Resident Fees 1,520 1,659

Capital Purpose IncomeResidential Accommodation Payments 211 228Total Capital Purpose Income 211 228


Note 3: Expenses

H.S.A. H.S.A. H&CI H&CI Total Total2014 2013 2014 2013 2014 2013

$'000 $'000 $'000 $'000 $'000 $'000

Employee ExpensesSalaries & Wages 10,207 9,818 508 483 10,715 10,301WorkCover Premium 170 243 1 - 171 243Long Service Leave 182 72 - - 182 72Superannuation 877 870 2 2 879 872Total Employee Expenses 11,436 11,003 511 485 11,947 11,488

Non Salary Labour CostsFees for Visiting Medical Officers 1,667 1,287 2 - 1,669 1,287Agency Costs-Nursing 36 102 - - 36 102Total Non Salary Labour Costs 1,703 1,389 2 - 1,705 1,389

Supplies & ConsumablesDrug Supplies 190 212 - - 190 212Medical and Surgical Supplies 618 452 41 41 659 493Food Supplies 535 512 36 37 571 549Total Supplies & Consumables 1,343 1,176 77 78 1,420 1,254

Other ExpensesDomestic Services and Supplies 276 300 4 4 280 304Administrative Expenses 1,061 951 8 8 1,069 959Repairs and Maintenance 319 354 262 218 581 572Fuel, Light & Power 196 187 2 2 198 189Patient Transport 76 87 - - 76 87Bad & Doubtful Debts - 21 - - - 21Hume Rural Health Alliance 136 148 - - 136 148Audit Fees - VAGO - Audit of Financial Statements 13 13 - - 13 13Total Other Expenses 2,077 2,061 276 232 2,353 2,293

Impairment of AssetsDepreciation 1,314 1,310 - - 1,314 1,310Total Impairment of Assets 1,314 1,310 - - 1,314 1,310

Total Expenses 17,873 16,939 866 795 18,739 17,734

Total


30 June 2014



30 June 2014

Note 3a: Analysis of expenses by source(based on the consolidated view of Note 3) RAC Incl.

Admitted Mental AgedPatients EDS Health Care Other Total

2014 2014 2014 2014 2014 2014$'000 $'000 $'000 $'000 $'000 $'000

Services Supported by Health Services Agreement

Employee Expenses 5,086 1,408 4,569 373 - 11,436Non Salary Labour Costs 1,559 89 55 - - 1,703Supplies & Consumables 860 15 460 8 - 1,343Other Expenses from Continuing Operations 1,702 20 341 14 - 2,077Total Expenses from Services Supported by Health ServicesAgreement 9,207 1,532 5,425 395 - 16,559

Services Supported by Hospital and Community InitiativesEmployee Expenses - - - - 511 511Non Salary Labour Costs - - - - 2 2Supplies & Consumables - - - - 77 77Other Expenses from Continuing Operations - - - - 276 276Total Expenses from Services Supported by Hospital andCommunity Initiatives - - - - 866 866

Depreciation (refer note 4) - - - - 1,314 1,314

Total Expenses 9,207 1,532 5,425 395 2,180 18,739


2013 2013 2013 2013 2013 2013$'000 $'000 $'000 $'000 $'000 $'000

Services Supported by Health Services Agreement

Employee Expenses 4,874 1,269 4,482 378 - 11,003Non Salary Labour Costs 1,201 78 110 - - 1,389Supplies & Consumables 741 10 415 10 - 1,176Other Expenses from Continuing Operations 1,615 24 402 20 - 2,061Total Expenses from Services Supported by Health ServicesAgreement 8,431 1,381 5,409 408 - 15,629

Services Supported by Hospital and Community Initiatives

Employee Expenses - - - - 485 485Supplies & Consumables - - - - 78 78Other Expenses from Continuing Operations - - - - 232 232

Total Expenses from Services Supported by Hospital andCommunity Initiatives - - - - 795 795

Depreciation (refer note 4) - - - - 1,310 1,310

Total Expenses 8,431 1,381 5,409 408 2,105 17,734

Note 3b: Analysis of expenses by internally managed and restricted specific purpose funds forservices supported by hospital and community initiatives

Total Total

2014 2013$'000 $'000

Catering 88 58Radiology 778 737

TOTAL 866 795


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 reaconvertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.

Total Total

2014 2013$'000 $'000

Cash at Bank 1,964 691Deposits at Call - 207Total Cash and Cash Equivalents 1,964 898

Represented by:Cash for Hospital Operations (as per Cash Flow Statement) 1,943 828Resident Monies Held in Trust 9 5Cash - Hume Rural Health Alliance 12 65Total Cash and Cash Equivalents 1,964 898


30 June 2014

Note 4: Depreciation Total Total

2014 2013$'000 $'000

Buildings 1,057 1,057Plant & Equipment 238 234Motor Vehicles 19 19

Total Depreciation 1,314 1,310



30 June 2014

Note 6: ReceivablesTotal Total

2014 2013$'000 $'000

CURRENTContractualInpatient Fees 51 81District Nursing Fees 19 48Aged Care Fees - 2Simplified Billing 4 9Trade Debtors 274 118Hume Rural Health Alliance 88 51Accrued Revenue 34 66Less Allowance for Doubtful Debts (3) (18)

467 357StatutoryGST Receivable 361 134Department of Health 22 -

383 134TOTAL CURRENT RECEIVABLES 850 491

NON-CURRENTStatutoryLong Service Leave - Department of Health 91 358

TOTAL NON-CURRENT RECEIVABLES 91 358TOTAL RECEIVABLES 941 849

(a) Movement in the Allowance for doubtful debtsTotal Total

2014 2013$'000 $'000

Balance at beginning of year 18 8Amounts written off during the year (18) (8)Amounts recovered during the year - -Increase/(decrease) in allowance recognised in net result 3 18Balance at end of year 3 18

(b) Ageing analysis of receivablesPlease refer to note 17(b) for the ageing analysis of receivables

(c ) Nature and extent of risk arising from receivablesPlease refer to note 17(b) for the nature and extent of credit risk arising from contractual receivables


Note 7: Investments and other financial assets

2014 2013 2014 2013$'000 $'000 $'000 $'000

CURRENTTerm Deposit

Australian Dollar Term Deposits > 3 months 3,375 2,999 3,375 2,999Total Current 3,375 2,999 3,375 2,999

Represented by:Investments 338 434 338 434Monies Held in Trust 3,037 2,565 3,037 2,565TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS 3,375 2,999 3,375 2,999

(a) Ageing analysis of investments and other financial assetsPlease refer to note 17(b) for the ageing analysis of other financial assets

(b) Nature and extent of risk arising from investments and other financial assetsPlease refer to note 17(b) for the nature and extent of credit risk arising from other financial assets

TotalOperating Fund

Note 8: InventoriesTotal Total

2014 2013$'000 $'000

Pharmaceuticals - at cost 22 19Catering Supplies - at cost 36 32Medical and Surgical Lines - at cost 65 78TOTAL INVENTORIES 123 129


30 June 2014

Note 9: Other assetsTotal Total

2014 2013$'000 $'000

Prepayments 12 5Prepayments - Hume Rural Health Alliance 1 2TOTAL OTHER ASSETS 13 7



30 June 2014

Note 10: Property, plant & equipment

(a) Gross carrying amount and accumulated depreciationTotal Total

2014 2013$'000 $'000

Land

Land at Fair Value 1,094 469 Less Impairment - -Total Land 1,094 469

BuildingsBuildings Under Construction at cost 6,889 1,437

Buildings at Fair Value 15,759 6,786

Total Buildings 22,648 8,223

Plant & Equipment

Plant & Equipment at Fair Value 4,524 4,367 Less Accumulated Depreciation 2,874 2,664Total Plant & Equipment 1,650 1,703

Motor Vehicles

Motor Vehicles at fair value 198 198 Less Accumulated Depreciation 48 29Total Motor Vehicles 150 169

TOTAL PROPERTY, PLANT & EQUIPMENT 25,542 10,564

Note 10 : Property, plant & equipment (continued)

Reconciliations of the carrying amounts of each class of asset at the beginning and end of the current and previous financial year are set out below.

Crown Freehold Buildings Plant & Motor TotalLand Land Equipment Vehicles$'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 July 2012 469 - 7,844 1,398 157 9,868Additions - - 1,436 539 148 2,123Disposals - - - - (117) (117)Depreciation expense (note 4) - - (1,057) (234) (19) (1,310)Balance at 1 July 2013 469 - 8,223 1,703 169 10,564Additions - - 5,451 185 - 5,636Disposals - - - - - -Revaluation Increments/(Decrements) 625 10,031 10,656Depreciation expense (note 4) - - (1,057) (238) (19) (1,314)Balance at 30 June 2014 1,094 - 22,648 1,650 150 25,542

Land and buildings carried at valuationAn independent valuation of the Hospitals land and buildings was performed by the Valuer-General Victoria to determine the fair value of the land and buildings.The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgable 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 at fair valueA valuation of the Hospitals plant and equipment was undetaken by management to determine fair value of the plant and equipment.

Crown LandThe land upon which the Hospital and Nursing Home is sited was originally granted to the Hospital by the Queen in 1889.It is Crown land permanently reserved for "hospital and offices and conveniences connected therewith".


Note 10: Property, plant & equipment (continued)

(c) Fair value measurement hierarchy for assets as at 30 June 2014

Level 1 (i) Level 2 (i) Level 3 (i)

$'000 $'000 $'000 $'000Land at fair valueNon-specialised landSpecialised land 1,094 - - 1,094

Total of land at fair value 1,094 1,094

Buildings at fair valueNon-specialised buildingsSpecialised buildings 15,759 - - 15,759 Heritage assets - - -

Total of building at fair value 15,759 - - 15,759

Plant and equipment at fair valuePlant equipment and vehicles at fair value- Vehicles (ii) 150 150 - Plant and equipment 1,650 1,650

Total of plant, equipment and vehicles at fair value 1,800 150 - 1,650

Assets under construction at fair valueSpecialised buildings 6,889 - - 6,889

Total assets under construction at fair value 6,889 - - 6,889

25,542 150 - 25,392

Note

(i) Classified in accordance with the fair value hierarchy, see Note 1

with independent valuers in determining whether a market approach is appropriate for vehicles with an active resale market available. If yes, a Level 2 categorisation for such vehicles would be appropriate.

Non-specialised land, non-specialised buildings and artworkNon-specialised land, non-specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.For non-specialised land and non-specialised buildings, an independent valuation was performed by independent valuers, Matheson Stephen Valuations , to determine the fairvalue using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. An appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 30 June 2014.For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on price paid for similar examples offered at auction or through art galleries in recent years.To the extent that non-specialised land, non-specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach.

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 hospital, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised buildings are classified as Level 3 for fair value measurements.An independent valuation of the Hospitals 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 Hospital acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and

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 2014. For all assets measured at fair value, the current use is considered the highest and best use.

Carrying amount as at 30 June 2014

Fair value measurement at end of reporting period using:

(ii) Vehicles are categorised to Level 3 assets if the depreciated replacement cost is used in estimating the fair value. However, entities should consult

There have been no transfers between levels during the period.


30 June 2014




Level 1 (i) Level 2 (i) Level 3 (i)

$'000 $'000 $'000 $'000Land at fair valueNon-specialised landSpecialised land 1,094 - - 1,094


Buildings at fair valueNon-specialised buildingsSpecialised buildings 15,759 - - 15,759 Heritage assets - - -

Total of building at fair value 15,759 - - 15,759



Assets under construction at fair valueSpecialised buildings 6,889 - - 6,889


25,542 150 - 25,392

Note

(i) Classified in accordance with the fair value hierarchy, see Note 1


Non-specialised land, non-specialised buildings and artworkNon-specialised land, non-specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.For non-specialised land and non-specialised buildings, an independent valuation was performed by independent valuers, Matheson Stephen Valuations , to determine the fairvalue using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. An appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 30 June 2014.For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on price paid for similar examples offered at auction or through art galleries in recent years.To the extent that non-specialised land, non-specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach.


VehiclesThe Hospital acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and

result, the fair value of vehicles does not differ materially from the carrying value (depreciated cost).




Land at fair valueNon-specialised landSpecialised land 1,094 - - 1,094


Buildings at fair valueNon-specialised buildings




25,542 150 - 25,392

Note


Non-specialised land, non-specialised buildings and artworkNon-specialised land, non-specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.

determine the fairvalue using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. An appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 30 June 2014.For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on price paid for similar examples offered at auction or through art galleries in recent years.To the extent that non-specialised land, non-specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach.


VehiclesThe Hospital acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and disposal in the market is managed by the Hospital 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).



(d) Reconciliation of Level 3 fair value

2014

Opening Balance 469 6,785 1,703 1,438 Purchases (sales) - - 185 5,451 Transfers in (out) of Level 3 - - - -

Gains or losses recognised in net result- Depreciation - (1,057) (238) - - Impairment loss - - - - Subtotal 469 5,728 1,650 6,889

Items recognised in other comprehensive income- Revaluation 625 10,031 - - Subtotal 625 10,031 - - Closing Balance 1,094 15,759 1,650 6,889

Unrealised gains/(losses) on non-financial assets - - - -

1,094 15,759 1,650 6,889

Assets under construction

There have been no transfers between levels during the period.

Land BuildingsPlant and

equipment


30 June 2014

Note 10: Property, plant & equipment (Continued)



(e) Description of significant unobservable inputs to Level 3 Valuations:

Sensitivity of fair valueSignificant measurement to change in

unobservable Range (weighted significant unobservableValuation technique (i) inputs (i) average) (i) inputs

Specialised Land Market Approach Community Service 50% (ii) A significant increase orHospital Obligation (CSO) decrease in the CSO adjustment

adjustment would result in a significantlylower (higher) fair value

Specialised Buildings Depreciated replacement cost Direct cost per $1,372 - $1,999m2 A significant increase orHospital square metre decrease in direct cost per square

metre adjustment would resultin a significantly higher or lowerfair value

Useful life of 8 - 33 years A significant increase orspecialised buildings decrease in the estimated useful

life of the asset would result in a significantly higher or lowervaluation

Plant and Equipment at fair value Depreciated replacement cost Cost per unit $1,000 - $180,000 A significant increase ordecrease in cost per unitwould result in a significantly higher or lower fair value

Useful life of PPE 3 - 10 years A significant increase ordecrease in the estimated usefullife of the asset would result in a significantly higher or lowervaluation

Vehicles Depreciated replacement cost Cost per unit $10,000 - $42,000 A significant increase ordecrease in cost per unitwould result in a significantly higher or lower fair value

Useful life of vehicles 1 - 10 years A significant increase ordecrease in the estimated usefullife of the asset would result in a significantly higher or lowervaluation

Assets under construction at fair value Depreciated replacement cost Cost per unit $1,000 - $1,231,000 A significant increase ordecrease in cost per unitwould result in a significantly higher or lower fair value

(i) (Illustrations on the valuation techniques, significant unobservable inputs and the related quantitative range of those inputs are indicative and should not be directly usedwithout consultation with entities' independent valuer.)(ii) CSO Adjustments of 50% were applied to reduce the market approach value for the Department's specialised land.


30 June 2014



30 June 2014

Note 11: PayablesTotal Total

2014 2013CURRENT $'000 $'000ContractualTrade Creditors 446 433 Accrued Expenses 201 137 Hume Rural Health Alliance 26 45

StatutoryDepartment of Health - 69

TOTAL PAYABLES 673 684

(a) Maturity analysis of payablesPlease refer to note 17(c) for the ageing analysis of payables

(b) Nature and extent of risk arising from payablesPlease refer to note 17(c) for the nature and extent of risks arising from contractual payables



30 June 2014

NOTE 12: ProvisionsTotal Total

2014 2013$'000 $'000

Current ProvisionsEmployee Benefits (i) (Note 12(a))Annual leave (Note 12(a)) - Unconditional and expected to be settled within 12 months (i) 803 794 - Unconditional and expected to be settled after 12 months (ii) 23 11 Long service leave (Note 12(a)) - Unconditional and expected to be settled within 12 months (i) 150 147 - Unconditional and expected to be settled after 12 months (ii) 1,052 872Accrued days off (Note 12(a)) - Unconditional and expected to be settled within 12 months (i) 24 18 - Unconditional and expected to be settled after 12 months (ii) - - Accrued salaries and wages (Note 12(a)) - Unconditional and expected to be settled within 12 months (i) 405 405 - Unconditional and expected to be settled after 12 months (ii) - -

2,457 2,247Provisions related to Employee Benefit On-CostsUnconditional and expected to be settled within 12 months (i) 154 151Unconditional and expected to be settled after 12 months (ii) 141 96

295 247Total Current Provisions 2,752 2,494

Non Current ProvisionsEmployee Benefits (i) (Note 12(a)) 306 339

37 37Total Non-Current Provisions 343 376Total Provisions 3,095 2,870

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and Related On-CostsUnconditional LSL Entitlement 1,346 1,131Annual Leave Entitlements 925 894Accrued Wages and Salaries 454 450Accrued Days Off 27 20Non-Current Employee Benefits and Related On-CostsConditional Long Service Leave Entitlements 343 375Total Employee Benefits and Related On-Costs 3,095 2,870

(b) Movement in Provisions

Movement in Long Service Leave:Balance at start of year 1,506 1,434Provisions made during the year 385 274Settlement made during the year (202) (202) Balance at end of year 1,689 1,506

Notes:(i) Employee benefits consist of amounts for annual leave and long service leave accrued by employees. On-costs such as payroll tax and worker's compensation insurance are not employee benefits and are reflected as a separate provision.(ii) The amounts disclosed are at present values.



30 June 2014

Note 13. Superannuation

Employees of the Hospital are entitled to receive superannuation benefits and the Hospital contributes to both definedbenefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and finalaverage salary.

The Hospital does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal orconstructive 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 liabilitiesin its disclosure for administered items.

However superannuation contributions paid and payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the Hospital. The name, details and amounts expense in relation to the major employee superannuation funds and contributions made by the Hospital are as follows:

Total Total Total Total 2014 2013 2014 2013

$'000 $'000 $'000 $'000(i) Defined benefit plans:Health Super 27 27 - - Defined contribution plans:Health Super 695 708 - - Hesta 157 137 - - Total 879 872 - -

(i) The bases for determining the level of contributions is determined by the various actuaries of the defined benefitsuperannuation plans.

Paid Contribution for the Year Contribution Outstanding at Year End

Note 14: Other LiabilitiesTotal Total

2014 2013$'000 $'000

CURRENTMonies Held In TrustResident Monies Held in Trust* 9 5 Accommodation Bonds* 3,037 2,565 Total Other Liabilities 3,046 2,570

* Total Monies Held In TrustRepresented by the following assets:Cash Assets (refer to note 5) 9 5 Investment and other Financial Assets (refer to Note 7) 3,037 2,565

3,046 2,570



30 June 2014

Note 15: EquityTotal Total

2014 2013$'000 $'000

(a) SurplusesProperty, Plant & Equipment Revaluation SurplusBalance at the beginning of the reporting period 6,765 6,765Revaluation Increment/(Decrements) - Buildings 10,031 - - Land 625 - Balance at the end of the reporting period 17,421 6,765

Represented by: Land 1,094 469 Buildings 16,327 6,296

Total Reserves 17,421 6,765

(b) Contributed CapitalBalance at the beginning of the reporting period 4,181 4,181 Capital contribution received from Victorian Government - - Capital Repayments - - Balance at the end of the reporting period 4,181 4,181

(c) Accumulated Surpluses/(Deficits)Balance at the beginning of the reporting period (1,624) (2,898) Net Result for the Year 5,166 1,274 Transfers to and from Surplus - - Balance at the end of the reporting period 3,542 (1,624)

Total Equity at the end of financial year 25,144 9,322

Note 16: Reconciliation of net result for the year to net cash inflow/(outflow) from operating activitiesTotal Total

2014 2013$'000 $'000

Net result for the period 5,166 1,274

Non-cash movements:Depreciation 1,314 1,310 Hume Rural Health Alliance (17) (10) Provision for Doubtful Debts (15) 10

Movements included in investing and financing activitiesNet (Gain)/Loss from Disposal of Plant and Equipment - 43

Movements in assets and liabilities:Change in Operating Assets & Liabilities

(Increase)/Decrease in Receivables (41) 58 (Increase)/Decrease in Other Assets (6) (1) Increase/(Decrease) in Payables 8 65 Increase/(Decrease) in Provisions 225 (50) (Increase)/Decrease in Inventories 6 7

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 6,640 2,706



30 June 2014

Note 17: Financial Instruments

(a) Financial risk management objectives and policies

The Kilmore and Distict Hospital's principal financial instruments comprise of: - Cash Assets - Term Deposits - Receivables (excluding statutory receivables) - Payables (excluding statutory payables) - Monies in Trust - Accommodation Bonds

The Hospital's main financial risks include credit risk, liquidity risk and interest rate risk.The Hospital 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 Hospital.

The main purpose of holding financail instruments is to prudentially manage The Kilmore and District Hospital financial risks within the government policy parameters.

Contractual Contractualfinancial financialassets - liabilities at

loans and amortisedreceivables cost Total

2014 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 1,964 - 1,964 Trade debtors and accruals 467 - 467 Deposits 3,375 - 3,375 Total Financial Assets (i) 5,806 - 5,806

Financial LiabilitiesTrade creditors and accruals - 673 673 Monies Held In Trust - 3,046 3,046 Total Financial Liabilities (ii) - 3,719 3,719

Contractual Contractualfinancial financialassets - liabilities at

loans and amortisedreceivables cost Total

2013 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 898 - 898 Trade debtors and accruals 357 - 357 Deposits 2,999 - 2,999 Total Financial Assets (i) 4,254 - 4,254

Financial LiabilitiesTrade creditors and accruals - 684 684 Monies Held In Trust - 2,570 2,570 Total Financial Liabilities (ii) - 3,254 3,254

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

(ii) The total amount of financial liabilities disclosed here excludes statutory payables

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

interest Fee incomeNet holding income/ / Impairment gain/(loss) (expense) (expense) loss Total

$'000 $'000 $'000 $'000 $'0002014Fianacial AssetsCash and Cash Equivalents (i) - - - - - Designated at Fair Value through Profit or Loss (iii) - - - - - Held-for-Trading at Fair Value through Profit or Loss (iii) - - - - - Loans and Receivables (i) - 32 - - 32 Available for Sale (i) - - - - - Total Financial Assets - 32 - - 32 Financial LiabilitiesDesignated at Fair Value through Profit or Loss (iii) - - - - - Held-for-Trading at Fair Value through Profit or Loss (iii) - - - - - At Amortised Cost (ii) - - - - - Total Financial Liabilities - - - - -

2013Financial AssetsCash and Cash Equivalents (i) - - - - - Designated at Fair Value through Profit or Loss (iii) - - - - - Held-for-Trading at Fair Value through Profit or Loss (iii) - - - - - Loans and Receivables (i) - 33 - - 33 Available for Sale (i) - - - - - Total Financial Assets - 33 - - 33 Financial LiabilitiesDesignated at Fair Value through Profit or Loss (iii) - - - - - Held-for-Trading at Fair Value through Profit or Loss (iii) - - - - - At Amortised Cost (ii) - - - - - Total Financial Liabilities - - - - -

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result;(ii) For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; and(iii) For financial assets and liabilities that are held-for-trading or designated at fair value through profit or loss, the net gain or loss is calculated by taking the movement in the fair value of the financial asset or liability.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

Categorisation of financial instruments

Note 17: Financial Instruments (continued)

(b) Credit Risk

Credit risk arises from the contractual financial assets of the Hospital, which comprise cash and deposits, non-statutory receivables and available for sale contractual financial assets. The Hospital’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the Hospital. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the Hospital’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than the Government, it is the Hospital’s policy to only deal with entities with high credit ratings of a minimum Triple-B rating and to obtain sufficient collateral or credit enhancements, where appropriate.

In addition, the Hospital does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, the Hospital’s policy is to only deal with banks with high credit ratings.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Hospital will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the Kilmore & District Hospital'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

2014 $'000 $'000 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 1,964 - - - 1,964 Receivables - - Trade Debtors - - - 467 467 - Other Receivables (i) - - - - - Term Deposit 3,375 - - - 3,375 Available for sale - Shares in Other Entities - - - - - Total Financial Assets 5,339 - - 467 5,806

2013Financial AssetsCash and Cash Equivalents 898 - - - 898 Receivables - - Trade Debtors - - - 357 357 - Other Receivables - - - - - - Term Deposit 2,999 - - - 2,999 Available for sale - Shares in Other Entities - - - - - Total Financial Assets 3,897 - - 357 4,254

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax credit recoverable).

Ageing analysis of financial assets as at 30 JunePast Due But Not Impaired

Consol'd Not Past Due Less Than 1-3 3 months - 1-5 ImpairedCarrying and Not 1 Month Months 1 Year Years Financial Amount Impaired Assets

2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Financial AssetsAt amortised costCash and Cash Equivalents 1,964 1,964 - - - - - Trade debtors and accruals 467 421 23 20 - - 3 Deposits 3,375 3,375 - - - - -

Total Financial Assets 5,806 5,760 23 20 - - 3

2013Financial AssetsCash and Cash Equivalents 898 898 - - - - - Trade debtors and accruals 357 277 7 55 - - 18 Deposits 2,999 2,999 - - - - -

Total Financial Assets 4,254 4,174 7 55 - - 8

(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 impairedThere are no material financial assets which are individually determined to be impaired. Currently the Hospital does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets that are past due but not impaired.

(c) Liquidity Risk

Liquidity risk is the risk that the Hospital would be unable to meet its financial obligations as and when they fall due.The Hospital 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 Kilmore and District Hospital's maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The Hospital manages its liquidity risk as follows:

The Kilmore & District Hospital manages liquidity risk by monitoring cashflows to ensure sufficient funds are maintained in the transitional bank account to meet liabilities as they fall due. Management monitor liquidity with monthly reports to the Board regarding cashflow position.

The following table discloses the contractual maturity analysis of the Hospital's finacial liabilities. For interest rates applicable to each class of liability refer to individual notes to the fianacial statements.

Maturity analysis of financial liabilities as at 30 JuneMaturity Dates

Contractual Less Than 1-3 3 months - 1-5Carrying Cash Flows 1 Month Months 1 Year YearsAmount

2014 $'000 $'000 $'000 $'000 $'000 $'000Financial LiabilitiesAt amortised costTrade creditors and accruals 673 673 673 - - - Monies Held In Trust 3,046 3,046 9 - 3,037 - Total Financial Liabilities 3,719 3,719 682 - 3,037 -

2013Financial LiabilitiesAt amortised costTrade creditors and accruals 684 684 622 - - - Monies Held In Trust 2,570 2,570 5 - 2,565 - Total Financial Liabilities 3,254 3,254 627 - 2,565 -

TotalFinancial institutions(AAA credit

rating)

Government agencies

(AAA credit rating)

Government agencies

(BBB credit rating)

Other (min BBB credit

rating)



30 June 2014



30 June 2014

(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e GST payable).Note 17: Financial Instruments (continued)

(d) Market RiskThe Kilmore & District Hospital's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below.

Currency RiskThe Kilmore & District Hospital is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.

Interest Rate RiskExposure to interest rate risk might arise primarily through the Hospital's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities,the Hospital mainly undertake financial liabilities with relatively even maturity profiles.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Health Service has minimal exposure to cash flow interest rate risks through its cash and deposits, term deposits and bank overdrafts that are at floating rate.

The Health Service manages this risk by mainly undertaking fixed rate or non-interest bearing financial instruments with relatively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank and bank overdraft, as financial assets that can be left at floating rate without necessarily exposing the Health Service to significant bad risk, management monitors movement in interest rates on a daily basis.

Interest rate exposure of financial assets and liabilities as at 30 JuneWeightedAverage Fixed Variable NonEffective Carrying Interest Interest InterestInterest Amount Rate Rate Bearing

2014 Rates (%) $'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents 3.00% 1,964 - 1,964 - Trade debtors and accruals (i) 0.00% 467 - - 467 Deposits 3.25% 3,375 3,375 - -

5,806 3,375 1,964 467

Financial LiabilitiesAt amortised costTrade creditors and accruals (i) 0.00% 673 - - 673 Monies Held In Trust 0.00% 3,046 - - 3,046

3,719 - - 3,719 2013Financial AssetsCash and Cash Equivalents 3.00% 898 - 898 - Trade debtors and accruals (i) 0.00% 357 - - 357 Deposits 4.00% 2,999 2,999 - -

4,254 2,999 898 357

Financial LiabilitiesAt amortised costTrade creditors and accruals (i) 0.00% 684 - - 684 Monies Held In Trust 4.00% 2,570 - - 2,570

3,254 - - 3,254

(i) The carrying amount must exclude types of statutory financial assets and liabilities (i.e GST input tax credit and GST payable)

Sensitivity Disclosure AnalysisTaking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, the Hospital 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 3%; - A parallel shift of +1% and -1% in inflation rate from year end rates of 2%

The following table discloses the impact on net operating result and equity for each category of financial instrument held by the Hospital at year end as presented to key management personnel, if changes inrelevant risk occur.

Carrying Amount +1%

Profit Equity Profit Equity2014 $'000 $'000 $'000 $'000Financial Assets Cash and Cash Equivalents 1,964 (20) (20) 20 20 Trade debtors and accruals 467 - - - - Deposits 3,375 (34) (34) 34 34 Financial LiabilitiesAt amortised costTrade creditors and accruals (i) 673 (7) (7) 7 7 Monies Held In Trust 3,046 - - - -

(61) (61) 61 61 Carrying Amount +1%

Profit Equity Profit Equity2013 $'000 $'000 $'000 $'000Financial Assets Cash and Cash Equivalents 898 (9) (9) 9 9 Trade debtors and accruals 357 - - - - Deposits 2,999 (30) (30) 30 30 Financial LiabilitiesAt amortised costTrade creditors and accruals (i) 684 (7) (7) 7 7 Monies Held In Trust 2,570 - - - -

(46) (46) 46 46


(e) Fair Value

The fair values and net fair values of financial instrument assets and liabilities are determined as follows:• Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices;• Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and• Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs.

The Hospital considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.

Interest Rate Exposure

-1%

-1%

Interest Rate Risk

Interest Rate Risk

Note 17: Financial Instruments (continued)(e) fair value (continued)

Comparison between carrying amount and fair valueCarrying Fair Value Carrying Fair ValueAmount Amount

2014 2014 2013 2013$'000 $'000 $'000 $'000

Financial Assets Cash and Cash Equivalents 1,964 1,964 898 898 Trade debtors and accruals 467 467 357 357 Deposits 3,375 3,375 2,999 2,999 Total Financial Assets 5,806 5,806 4,254 4,254

Financial LiabilitiesAt amortised costTrade creditors and accruals (i) 673 673 684 684 Monies Held In Trust 3,046 3,046 2,570 2,570 Total Financial Liabilities 3,719 3,719 3,254 3,254




30 June 2014

Note 18: Commitments for expenditure

There are no capital or lease commitments at 30 June 2014.

Note 19: Contingent assets & contingent liabilities

There are no known contingent liabilities or assets at balance date that will have a material effect on the financial statements.

Note 20: Operating segments

2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000

REVENUEExternal Segment Revenue 4,539 5,218 19,334 13,757 23,873 18,975 Total Revenue 4,539 5,218 19,334 13,757 23,873 18,975 EXPENSESExternal Segment Expenses 5,425 5,409 13,314 12,325 18,739 17,734 Total Expenses 5,425 5,409 13,314 12,325 18,739 17,734 Net Result from ordinary activities (886) (191) 6,020 1,432 5,134 1,241

Interest Income 16 17 16 16 32 33 Net Result for Year (870) (174) 6,036 1,448 5,166 1,274

OTHER INFORMATIONSegment Assets 11,413 6,465 20,545 8,981 31,958 15,446 Unallocated Assets - - - - - - Total Assets 11,413 6,465 20,545 8,981 31,958 15,446

Segment Liabilities 3,925 3,425 2,889 2,699 6,814 6,124 Unallocated Liabilities - - - - - - Total Liabilities 3,925 3,425 2,889 2,699 6,814 6,124

Acquisition of Property, Plant & Equipment 51 405 5,569 1,718 5,620 2,123 Depreciation expense 638 626 676 684 1,314 1,310

The major products/services from which the above segments derive revenue are:

Business Segments ServicesResidential Aged Care Services (RACS) Nursing Home, Hostel & Respite residential aged care services.

Other (Acute Health) Inpatient & outpatient acute health services.

Geographical SegmentThe Kilmore and District Hospital operates predominantly in Kilmore, Victoria. More than 90% of revenue,net surplus from ordinary activities and segment assets relate to operations in Kilmore, Victoria.

RACS Other Total



30 June 2014

Note 21: Jointly controlled operations and assets

Name of Entity Principal Activity 2014 2013% %

Hume Rural Health Alliance Information Systems 4.67 4.62

The Kilmore & District Hospital interest in assets employed in the above jointly controlled operations, assets andliabilities is detailed below. The amounts are included in the financial statements under their respective categories:

2014 2013$'000 $'000

Current AssetsCash and Cash Equivalents 12 65Receivables 87 51Prepayments 27 2Total Current Assets 126 118

Non Current AssetsProperty, Plant and Equipment 18 2Total Non Current Assets 18 2Total Assets 144 120

Current LiabilitiesPayables 26 45Total Current Liabilities 26 45Total Liabilities 26 45

The Kilmore & District Hospital interest in revenues and expenses resulting from jointly controlled operations is detailed below:

2014 2013$'000 $'000

RevenuesRevenue From Operating Activities 140 157Revenue From Non-Operating Activities 1 2Capital Purpose Income 12 - Total Revenue 153 159

ExpensesEmployee Benefits 89 88Other Expenses From Continuing Operations 180 184Depreciation 0 2Expenditure Using Capital Funds 14 0Total Expenses 283 274Net result (130) (115)

Ownership Interest



30 June 2014


Note 22a: Responsible Persons Disclosures

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.

PeriodResponsible Ministers:The Honourable David Davis, MLC, Minister for Health and Ageing 1/07/2013 - 30/06/2014The Honourable Mary Wooldridge, MLA, Minister for Mental Health 1/07/2013 - 30/06/2014

Governing BoardsJ. Dixon (Chairman) 1/07/2013 - 30/06/2014J. Robinson 1/07/2013 - 30/06/2014J. McGill 1/07/2013 - 30/06/2014L. Whitehouse 1/07/2013 - 30/06/2014W.R. Arnott 1/07/2013 - 30/06/2014B. McSherry 1/07/2013 - 30/06/2014G. Sekfy 1/07/2013 - 30/06/2014Accountable OfficerB.G. Ruyter (Chief Executive Officer) 1/07/2013 - 30/06/2014

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

2014 2013Income Band No. No.$0 - $9,999 7 7$190,000 - $199,999 - 1$200,000 - $209,999 1 - Total Numbers 8 8Total remuneration received or due and receivable by Responsible Persons from the Reporting Entity amounted to: $202,888 $198,033Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet.

Other Transactions of Responsible Persons and their Related PartiesNo other transactions have been paid by the reporting entity in connection with Responsible Persons and their Related Parties.

Note 22b: Executive officer disclosuresExecutive Officers' RemunerationThe 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. The base remuneration of executive officers is shown in thethird and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

2014 2013 2014 2013No. No. No. No.

$110,000 - $119,999 1 1$120,000 - $129,999 1 1 1 1$130,000 - $139,999 1 1Total 2 2 2 2Total Remuneration $254,730 $245,715 $254,730 $245,715

Total

Total Remuneration Base Remuneration


30 June 2014


Note 23. Remuneration of Auditors

2014 2013Victorian Auditor-General's Office $'000 $'000Audit or review of financial statement 13 13

13 13

Note 24: Events occurring after the balance sheet date

There were no events occurring after balance date which would have a material effect on the financial statements.

Note 25: Economic Dependency

The Kilmore & District Hospital is wholly dependent on the continued financial support of the State Government and in particular, the Department of Health.The Department of Health has provided confirmation that it will continue to provide the Kilmore & District Hospital adequate cash flow support to meetits current and future obligations as and when they fall due for a period up to September 2015.


DISCLOSURE INDEXThe Annual Report of The Kilmore & District Hospital is prepared in accordance with all Victorian legislation. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.

Charter and Purpose PageFRD 22D Manner of establishment and the relevant Ministers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6FRD 22D Objectives, functions, powers and duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,4FRD 22D Nature and range of services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3,5

Management StructureFRD 22D Organisational structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,7

Financial and other informationFRD 10 Disclosure index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55FRD 11A Disclosure of ex-gratia payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53FRD 12A Disclosure of Major Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53FRD 21B Responsible person and executive officer disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53FRD 22D Application and operation of Protected Disclosure Act 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Application and operation of Carers Recognition Act 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Application and operation of Freedom of Information Act 1982 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Compliance with building and maintenance provisions of Building Act 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Details of consultancies over $10,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Details of consultancies under $10,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Employment and conduct principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11FRD 22D Major changes or factors affecting performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4FRD 22D Occupational health and safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Operational and budgetary objectives and performance against objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4FRD 22D Significant changes in financial position during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4,5FRD 22D Statement of availability of other information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Statement on National Competition Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 22D Subsequent events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54FRD 22D Summary of the financial results for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4FRD 22D Workforce Data Disclosures including a statement on the application of employment and conduct principles . . . . . . . . . . . . . . . . . . .11FRD 24C Reporting of office-based environmental impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 25B Victorian Industry Participation Policy disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10FRD 29 Workforce Data disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10SD 4.2(g) Specific information requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10SD 4.2(j) Sign-off requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4SD 3.4.13 Attestation on Data Integrity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11SD 4.5.5.1 Attestation of Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11SD 4.5.5 Risk Management compliance Attestation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

Financial statements required under Part 7 of the Financial Management Act 1994SD 4.2(a) Statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19SD 4.2(b) Operating statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17SD 4.2(b) Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18SD 4.2(b) Cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

Other requirements under Standing Directions 4.2SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21SD 4.2(c) Accountable officer’s declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14SD 4.2(c) Compliance with Ministerial Directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21SD 4.2(d) Rounding of amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

LegislationFreedom of Information Act 1982 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Protected Disclosure Act 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Carers Recognition Act 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Victorian Industry Participation Policy Act 2003Building Act 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Financial Management Act 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Further information may be obtained by contacting this agency. Contact details are on the cover of the Annual Report


Notes

159th ANNUAL REPORT - Parliament of Victoria...159th ANNUAL REPORT 2014 Address: Rutledge Street,...

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Transcript of 159th ANNUAL REPORT - Parliament of Victoria...159th ANNUAL REPORT 2014 Address: Rutledge Street,...