Contents

2012/13 FINANCIAL REPORT

Certification iVictorian Auditor General’s Report ii-iii

Disclosure Index FRD 22B Relevant Ministers FR 42FRD 15B Executive Officer disclosures FR 43FRD 21A Responsible person andExecutive officer disclosures FR 42/FR 43Subsequent Events FR 43

Financial Statements required under Part 7 of the FMASD 4.2(a) Statement of changes in equity FR 3SD 4.2(b) Operating statement FR 1SD 4.2(b) Balance sheet FR 2SD 4.2(b) Cash flow statement FR 4

Other requirements under Standing Directions 4.2SD 4.2(a) Compliance with Australian FR 5Accounting Standards and other authoritativepronouncements SD 4.2(c) Accountable officer’s declaration iSD 4.2(c) Compliance with Ministerial Directions FR 5SD 4.2(d) Rounding of amounts FR 7

East Grampians Health Service

Annual Report 2012/2013

Note

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012$'000 $'000 $'000 $'000

Revenue from Operating Activities 2 28,970 27,881 29,028 27,976

Revenue from Non-operating Activities 2 - - 57 66

Employee Expenses 3 (18,305) (18,281) (18,305) (18,281)

Non Salary Labour Costs 3 (2,491) (2,651) (2,491) (2,651)

Supplies & Consumables 3 (3,880) (3,414) (3,880) (3,414)

Administrative Expenses 3 (1,415) (1,332) (1,425) (1,393)

Other Expenses From Continuing Operations 3 (2,816) (2,474) (2,819) (2,477)

Net Result Before Capital & Specific Items 63 (271) 165 (174)

Capital Purpose Income 2 1,796 1,604 1,796 1,604

Depreciation and Amortisation 4 (2,774) (2,676) (2,774) (2,676)

Expenditure using Capital Purpose Income 3 (186) (156) (186) (156)

NET RESULT FOR THE YEAR (1,101) (1,499) (999) (1,402)

Other comprehensive income

Changes in physical asset revaluation surplus 2,741 - 2,741 -

COMPREHENSIVE RESULT FOR THE YEAR 1,640 (1,499) 1,742 (1,402)

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

East Grampians Health Service

Comprehensive Operating StatementFor the Year Ended 30 June 2013

FR 1

East Grampians Health Service

Annual Report 2012/2013

Note

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012$'000 $'000 $'000 $'000

Current Assets

Cash and Cash Equivalents 5 7,324 7,280 8,593 8,464

Receivables 6 1,104 799 1,124 802

Inventories 7 46 50 46 50

Other Current Assets 8 147 58 147 58

Total Current Assets 8,621 8,187 9,910 9,374

Non-Current Assets

Receivables 6 723 673 723 673

Property, Plant & Equipment 9 34,999 33,074 34,999 33,074

Total Non-Current Assets 35,722 33,747 35,722 33,747

TOTAL ASSETS 44,343 41,934 45,632 43,121

Current Liabilities

Payables 10 2,450 1,472 2,453 1,475

Provisions 11 3,882 3,944 3,882 3,944

Other Liabilities 12 3,037 3,133 3,037 3,133

Total Current Liabilities 9,369 8,549 9,372 8,552

Non-Current Liabilities

Provisions 11 610 661 610 661

Total Non-Current Liabilities 610 661 610 661

TOTAL LIABILITIES 9,979 9,210 9,982 9,213

NET ASSETS 34,364 32,724 35,650 33,908

EQUITY

Property, Plant & Equipment Revaluation Surplus 13a 13,736 10,995 13,736 10,995

General Purpose Surplus 13a 139 123 139 123

Restricted Specific Purpose Surplus 13a 590 590 590 590

Contributed Capital 13b 19,896 19,896 19,896 19,896

Accumulated Surpluses/(Deficits) 13c 3 1,120 1,289 2,304

TOTAL EQUITY 13 34,364 32,724 35,650 33,908

Contingent Assets and Contingent Liabilities 17

Commitments for Expenditure 16

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

Balance SheetAs at 30 June 2013

East Grampians Health Service

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East Grampians Health Service

Annual Report 2012/2013

Note Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 23,682 22,759 23,682 22,759

Patient and Resident Fees Received 2,825 2,673 2,825 2,673

Donations and Bequests Received 13 20 71 115

GST Received from/(paid to) ATO 717 919 717 919

Interest Received 17 5 57 89

Other Receipts 2,504 2,333 2,504 2,333

Employee Expenses Paid (18,418) (17,478) (18,418) (17,478)

Non Salary Labour Costs (2,740) (2,916) (2,740) (2,916)

Payments for Supplies & Consumables (3,299) (4,086) (3,303) (4,090)

Other Payments (4,974) (4,194) (4,983) (4,254)

Cash Generated from Operations 327 35 412 150

Capital Grants from Government 1,095 845 1,095 845

Capital Donations and Bequests Received 322 261 322 261

Other Capital Receipts 402 511 402 511

NET CASH INFLOW/(OUTFLOW) FROM

OPERATING ACTIVITIES 14 2,146 1,652 2,231 1,767

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Non-Financial Assets (2,104) (2,269) (2,104) (2,269)

Proceeds from sale of Non-Financial Assets 140 83 140 83

NET CASH INFLOW/(OUTFLOW) FROM

INVESTING ACTIVITIES (1,964) (2,186) (1,964) (2,186)

NET INCREASE/(DECREASE) IN CASH HELD 182 (534) 267 (419)

CASH AND CASH EQUIVALENTS AT BEGINNING OF

PERIOD 4,205 4,739 5,389 5,808

CASH AND CASH EQUIVALENTS AT END OF

PERIOD 5 4,387 4,205 5,656 5,389

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

Cash Flow Statement For the Year Ended 30 June 2013

East Grampians Health Service

FR 4

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(a) Statement of Compliance

(b) Basis of preparation

These financial statements are a general purpose financial report which have been prepared in accordance with the

Financial Management Act 1994 and applicable Australian Accounting Standards (AASs), which include

interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner

consistent with the requirements of AASB 101 Presentation of Financial Statements.

The annual financial statements were authorised for issue by the Board of East Grampians Health Service on 29

August 2013.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30

June 2013, and the comparative information presented in these financial statements for the year ended 30 June

2012.

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 financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department

of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Minister for Finance.

The Health Service is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to "not-

for-profit" entities under the AASs.

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised if the revision affects only that period or in the period of

the revision, and future periods if the revision affects both current and future periods. Judgements made by

management in the application of AASs that have significant effects on the financial statements and estimates, with

a risk of material adjustments in the subsequent reporting period, related to:

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

Grampians Health Service.

The financial statements, except for cash flow information, have been prepared using the accrual basis of

accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when

they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting

period to which they relate, regardless of when cash is received or paid.

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

- non current physical assets, which subsequent to acquisition, are measured at a revalued amount

being their fair value at the date of the revaluation less any subsequent accumulated depreciation and

subsequent losses. Revaluations are made and are reassessed with sufficient regularity to ensure that

the carrying amounts do not materially differ from their fair values;

- actuarial assumptions for employee benefit provisions based on likely tenure of existing staff,

patterns of leave claims, future salary movements and future discount rates (refer to note 1(k)).

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

In the application of AASs management is required to make judgments, estimates and assumptions about carrying

values of assets and liabilities that are not readily apparent from other sources. The estimates and associated

assumptions are based on historical experience and various other factors that are believed to be reasonable under

the circumstances, the results of which form the basis of making the judgments. Actual results may differ from

these estimates.

- the fair value of land, buildings, infrastructure, plant and equipment (refer to note 1(j);

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

These annual financial statements represent the audited general purpose financial statements for East Grampians

Health Service for the period ending 30 June 2013. The purpose of the report is to provide users with information

about East Grampians Health Service's stewardship of resources entrusted to it.

FR 5

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(c) Reporting Entity

(d) Principles of Consolidation

-

(e) Scope and presentation of financial statements

Fund Accounting

Jointly controlled assets or operations

Objectives and funding

East Grampians Health Service's overall objective is to improve our communities health and quality of life through

strong partnerships and by responding to changing needs, as well as improve the quality of life to Victorians.

East Grampians Health Service is predominantly funded by accrual based grant funding for the provision of outputs.

Transactions between segments within East Grampians Health Service have been eliminated to reflect the extent of

the East Grampians Health Service’s operations as a group.

Where control of an entity is obtained during the financial period, its results are included in the comprehensive

operating statement from the date on which control commenced. Where control ceases during a financial period, the

entity’s results are included for that part of the period in which control existed. Where dissimilar accounting policies

are adopted by entities and their effect is considered material, adjustments are made to ensure consistent policies

are adopted in these financial statements.

Residential Aged Care Service operations are an integral part of East Grampians Health Service and shares its

resources. An apportionment of land and buildings has been made based on floor space. The results of the two

operations have been segregated based on actual revenue earned and expenditure incurred by each operation in

note 18 to the financial statements.

Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the

Department of Health and includes Residential Aged Care Services (RACS) and are also funded from other sources

such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives

(H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth.

Residential Aged Care Service

Residential Aged Care Services are substantially funded from Commonwealth bed-day subsidies.

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

Intersegment Transactions

Its principal address is: Girdlestone Street, Ararat, Victoria 3377.

A description of the nature of East Grampians Health Service’s operations and its principal activities is included in

the report of operations, which does not form part of these financial statements.

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

Initiatives

In accordance with AASB 127 Consolidated and Separate Financial Statements, the consolidated financial

statements of East Grampians Health Service incorporates the assets and liabilities of all entities controlled by East

Grampians Health Service as at 30 June 2013, and their income and expenses for that part of the reporting period in

which control existed. Control exists when East Grampians Health Service has the power to govern the financial and

operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights

that presently are exercisable are taken into account. The consolidated financial statements include the audited

financial statements of the controlled entities listed in note 22.

Bodies consolidated into East Grampians Health Service reporting entity include:

East Grampians Health Building For The Future Foundation

Interests in jointly controlled assets or operations are not consolidated by East Grampians Health Service, but are

accounted for in accordance with the policy outlined in note 1(j) Financial assets.

East Grampians Health Service operates on a fund accounting basis and maintains three funds: Operating, Specific

Purpose and Capital Funds. East Grampians Health Service’s Capital and Specific Purpose Funds include unspent

capital donations and receipts from fundraising activities conducted solely in respect of these funds.

FR 6

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

-

-

-

(f) Income from transactions

-

-

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at

the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows

separately changes due to amounts recognised in the comprehensive result and amounts recognised in other

comprehensive income related to other non owner changes in equity.

Assets and liabilities are categorised either as current or non-current (non-current being those assets and liabilities

expected to be recovered/settled more than 12 months after reporting period), are disclosed in the notes where

relevant.

Balance sheet

Statement of changes in equity

Rounding

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

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 East Grampians Health Service and the income can be reliably measured.

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.

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

Contributions are deferred as income in advance when East Grampians Health Service has a present obligation to

repay them and the present obligation can be reliably measured.

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.

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

The comprehensive operating statement includes the subtotal entitled ‘Net result Before Capital & Specific Items’ to

enhance the understanding of the financial performance of East Grampians Health Service. This subtotal reports the

result excluding items such as capital grants, assets received or provided free of charge, depreciation, 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 East Grampians Health Service, the Department of Health and the Victorian Government to measure

the ongoing performance of health services in operating hospital services.

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 (f)). 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.

Depreciation as described in note 1 (g).

Comprehensive operating statement

In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than

contributions by owners) are recognised as income when East Grampians Health Service gains control of the

underlying assets irrespective of whether conditions are imposed on East Grampians Health Services use of the

contributions.

Indirect Contributions from the Department of Health

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.

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 5/2013.

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

FR 7

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(g) Expense Recognition

-

- Annual leave;

- Sick leave;

- Long service leave; and

-

Fund

2013 2012

$'000 $'000

Defined benefit plans:

Health Super Superannuation Fund 135 173

Defined contribution plans:

Health Super Superannuation Fund 1,076 1,029

HESTA Superannuation Fund 227 224

Total 1,438 1,426

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

asset.

Revenue from commercial activities

Donations and Other Bequests

Patient and Resident Fees

Revenue from commercial activities is recognised at the time invoices are raised.

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

from inventories.

Contributions Paid or

Payable for the year

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

Health Service are as follows:

The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans

represents the contributions made by East Grampians Health Service to the superannuation plans in respect of the

services of current Health Service staff during the reporting period. Superannuation contributions are made to the

plans based on the relevant rules of each plan, and are based upon actuarial advice.

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

Cost of Goods Sold

Defined contribution plans

Superannuation expenses which are reported differently depending upon whether employees are

members of defined benefit or defined contribution plans.

In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the

employer contributions that are paid or payable in respect of employees who are members of these plans during the

reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

Defined benefit plans

Employees of East Grampians Health Service are entitled to receive superannuation benefits and East Grampians

Health Service contributes to both the defined benefit and defined contribution plans. The defined benefit plan

provide benefits based on years of service and final average salary.

Wages and salaries;

Employee expenses include:

Interest Revenue

Employee expenses

Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may

be appropriated to a reserve, such as the restricted specific purpose reserve.

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

FR 8

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(h) Other comprehensive income

-

(i) Financial instruments

Other comprehensive income measures the change in volume or value of assets or liabilities that do not result from

transactions.

Net gain/(loss) on non-financial assets

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

Revaluation gains/(losses) of non-financial physical assets

Refer to Note 1(j) Revaluations of non-financial physical assets.

- Structure Shell Building Fabric 5 to 50 years 5 to 50 years

Depreciation

Buildings

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

based.

2013 2012

5 to 50 years

Plant & Equipment 5 to 15 years 5 to 15 years

- Trunk Reticulated Building Systems 5 to 50 years

5 to 50 years

Central Plant

- Site Engineering Services and Central Plant 5 to 50 years 5 to 50 years

- Fit Out 5 to 50 years

5 to 15 years

Computers and Communication 3 to 5 years 3 to 5 years

Medical Equipment 5 to 15 years

Furniture and Fitting 5 to 15 years 5 to 15 years

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 East Grampians Health Service’s

activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial

assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments:

Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of

financial instruments as they do not arise under contract.

Bad and doubtful debts

Refer to Note 1 (j) Impairment of financial assets.

All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite

useful lives are depreciated. 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.

Please note: the estimated useful lives, residual values and depreciation method are reviewed at the end of each

annual reporting period, and adjustments made where appropriate.

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

include:

Other operating expenses

Motor Vehicles

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 refers to financial instruments unless otherwise stated.

7 years 7 years

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.

Supplies and consumables

Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred.

The carrying amounts of any inventories held for distribution are expensed when distributed.

FR 9

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(j) Assets

-

-

-

-

-

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.

Available-for-sale financial assets.

Investments and Other Financial Assets

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.

Statutory receivables, which includes predominantly amounts owing from the Victorian Government

and GST input tax credits recoverable.

Cash and cash equivalents 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.

Categories of non-derivative financial instruments

Loans and receivables

Loans and receivables category includes cash and deposits (refer to Note 1(j)), term deposits with maturity greater

than three months, trade receivables, loans and other receivables, but not statutory receivables.

Loans and receivables; and

Receivables

Contractual receivables, which consists of mainly debtors in relation to goods and services and accrued

investment income; and

Receivables consist of:

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.

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 debts may not

be collected and bad debts are written off when identified.

Financial assets at fair value through profit or loss;

Financial instrument liabilities measured at amortised cost include all of East Grampians Health Service’s contractual

payables, deposits held and advances received, and interest-bearing arrangements other than those designated at

fair value through profit or loss.

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.

Investments are classified in the following categories:

For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are

included as current borrowings in the balance sheet.

Financial liabilities at amortised cost

Cash and Cash Equivalents

FR 10

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

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.

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.

Land and Buildings are recognised initially at cost and subsequently measured at fair value less accumulated

depreciation and impairment.

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.

Crown Land is measured at fair value with regard to the property’s highest and best use after due consideration is

made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made

in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the

asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply.

Revaluations of Non-current Physical Assets

Revaluation increments are credited directly to the asset revaluation surplus, except that, to the extent that an

increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an

expense in net result, the increment is recognised as income in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a

credit balance exists in the asset revaluation surplus in respect of the same class of assets, they are debited directly

to the asset revaluation surplus.

Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103D Non-current

physical assets. This revaluation process normally occurs at least every five years, based upon the asset’s

Government Purpose Classification, but may occur more frequently if fair value assessments indicate material

changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim

revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or

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

Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less

accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for fair value

because of the short lives of the assets concerned.

Property, Plant and Equipment

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

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

acquisition.

East Grampians Health Service assesses at each balance sheet date whether a financial asset or group of financial

assets is impaired.

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

impairment.

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

Inventories

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.

East Grampians Health Service classifies its other financial assets between current and non-current assets based on

the purpose for which the assets were acquired. Management determines the classification of its other financial

assets at initial recognition.

Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal

cost in the ordinary course of business operations. It includes land held for sale and excludes depreciable assets.

FR 11

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

-

-

-

-

-

-

-

-

-

-

-

-

-

Prepayments

Investments in jointly controlled assets and operations

For jointly controlled operations East Grampians Health Service recognises:

its share of jointly controlled assets;

In respect of any interest in jointly controlled assets, East Grampians Health Service recognises in the financial

statements:

Disposal of Non-Financial Assets

Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement. Refer to

Note 1(h) – ‘other comprehensive income’.

Impairment of Non-Financial Assets

expenses that it incurs; and

Assets are assessed annually for indications of impairment, except for:

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.

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

its share of liabilities incurred jointly by the joint venture;

any liabilities that it had incurred;

inventories.

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

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds

their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference

is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus

amount applicable to that same class of asset.

If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last

impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of

the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount

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

prior years.

In accordance with FRD 103D, East Grampians Health Service's non-current physical assets were assessed to

determine whether revaluation of the non-current physical assets was required. A managerial revaluation was

undertaken as a result of this review (refer to Note 9).

its share of liabilities incurred jointly by the joint venture;

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.

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:

East Grampians Health Service 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

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

the assets that it controls;

the liabilities that it incurs;

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

FR 12

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

-

(k) Liabilities

-

-

At the end of each reporting period East Grampians Health Service 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.

Wages and Salaries, Annual Leave, Sick Leave and Accrued Days Off

Provisions

Contractual payables are initially recognised at fair value, and then subsequently carried at amortised cost.

Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial

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

a contract.

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.

Employee Benefits

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.

East Grampians Health Service has transferred its rights to receive cash flows from the asset and

either:

Where East Grampians Health Service has neither transferred nor retained substantially all the risks and rewards or

transferred control, the asset is recognised to the extent of East Grampians Health Service’s continuing involvement

in the asset.

Impairment of Financial Assets

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

Contractual payables which consist predominantly of accounts payable representing liabilities for goods

and services provided to East Grampians Health Service prior to the end of the financial year that are

unpaid, and arise when East Grampians Health Service becomes obliged to make future payments in

respect of the purchase of those goods and services.

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.

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

Payables

Payables consist of:

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

transferred control of the asset.

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

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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present

obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a

provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the

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

the provision.

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.

Provisions are recognised when East Grampians Health Service has a present obligation, the future sacrifice of

economic benefits is probable, and the amount of the provision can be measured reliably.

Liabilities for wages and salaries, including non-monetary benefits, annual leave accumulating, sick leave and

accrued days off which are expected to be settled within 12 months of the reporting date are recognised in the

provision for employee benefits in respect of employee’s services up to the reporting date, and are classified as

current liabilities and measured at their nominal values.

FR 13

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(l) Leases

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed in the

notes to the financial statements as a current liability even where East Grampians Health Service does not expect to

settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the

entitlement should an employee take leave within 12 months.

Those liabilities that are not expected to be settled within 12 months are also recognised in the provision for

employee benefits as current liabilities, but are measured at present value of the amounts expected to be paid when

the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together

with provisions for employee benefits.

The components of this current LSL liability are measured at:

present value – component that East Grampians Health Service does not expect to settle within 12

months; and

Termination benefits are payable when employment is terminated before the normal retirement date or when an

employee accepts voluntary redundancy in exchange for these benefits.

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

Termination Benefits

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of

service. Expected future payments are discounted using interest rates of Commonwealth Government guaranteed

securities in Australia.

nominal value – component that East Grampians Health Service expects to settle within 12 months.

Non-Current Liability – conditional LSL (representing less than 10 years of continuous service) is disclosed as

a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee

has completed the requisite years of service. Conditional LSL is required to be measured at present value.

Finance Leases

East Grampians Health Service does not hold any finance lease arrangements with other parties.

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a

valid expectation has been raised with those employees affected that the terminations will be carried out. The

liabilities for termination benefits are recognised in other creditors unless the amount or timing of the payments is

uncertain, in which case they are recognised as a provision.

Entity as lessor

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

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net

consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of

payments.

Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer

substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Superannuation liabilities

East Grampians Health Service does not recognise any unfunded defined benefit liability in respect of the

superannuation plans because the Health Service has no legal or constructive obligation to pay future benefits

relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department

of Treasury and Finance administers and discloses the State’s defined benefit liabilities in its financial statements.

Operating Leases

Long Service Leave

On-Costs

Leases are classified at their inception as either operating or finance leases based on the economic substance of the

agreement so as to reflect the risks and rewards incidental to ownership.

FR 14

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(m) Equity

(n) Commitments for expenditure

(o) Contingent assets and contingent liabilities

(p) Goods and Services Tax (GST)

Contributed Capital

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net

consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of

payments.

In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a

reduction of rental income over the lease term, on a straight-line basis unless another systematic basis is more

appropriate of the time pattern over which the economic benefit of the leased asset is diminished.

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public

Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been

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

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

A general purpose reserve is established where East Grampians Health Service has placed a restriction and/or

condition on the use of particular funds received.

Lease Incentives

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.

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.

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note

and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented

inclusive of GST receivable or payable respectively.

Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive

operating statement on a straight line basis over the lease term, except where another systematic basis is more

representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not

recognised in the balance sheet.

Specific Restricted Purpose Reserve

A specific restricted purpose reserve is established where East Grampians Health Service has possession or title to

the funds but has no discretion to amend or vary the restriction and/or condition underlying the funds received.

Property, Plant & Equipment Revaluation Surplus

General Reserves

Commitments for future expenditure include operating and capital commitments arising from contracts. These

commitments are disclosed by way of a note (refer to note 16) at their nominal value and are inclusive of the goods

and services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant

information to users, the net 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.

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

physical assets.

Entity as lessee

In the event that lease incentives are received by the lessee to enter into operating leases, such incentives are

recognised as a liability. The aggregate benefits of incentives are recognised as a reduction of rental expense on a

straight-line basis, except where another systematic basis is more representative of the time pattern in which

economic benefits from the leased asset is diminished.

FR 15

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(q) AASs issued that are not yet effective

AASB 10 Consolidated

Financial Statements

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.

1-Jan-15 Subject to AASB’s further

modifications to AASB 9,

together with the

anticipated changes

resulting from the staged

projects on impairments

and hedge accounting,

details of impacts will be

assessed.

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

As at 30 June 2013, 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. East Grampians Health Service has not and does not intend to adopt

these standards early.

Standard /

Interpretation

Impact on financial

statements

Applicable for annual

reporting periods

beginning or ending

on

Summary

Certain new Australian accounting standards and interpretations have been published that are not mandatory for the

30 June 2013 reporting period.

Not-for-profit entities are

not permitted to apply

this Standard prior to the

mandatory application

date. Subject to AASB’s

final deliberations on ED

238 and any

modifications made to

AASB 10 for not-for-

profit entities, the entity

will need to re-assess the

nature of its relationships

with other entities,

including those that are

currently not

consolidated.

AASB 9 Financial

instruments

This standard simplifies

requirements for the classification

and measurement of financial

assets resulting from Phase 1 of

the IASB’s project to replace IAS

39 Financial Instruments:

Recognition and Measurement

(AASB 139 Financial Instruments:

Recognition and Measurement).

This Standard forms the basis for

determining which entities should

be consolidated into an entity’s

financial statements. AASB 10

defines ‘control’ as requiring

exposure or rights to variable

returns and the ability to affect

those returns through power over

an investee, which may broaden

the concept of control for public

sector entities. The AASB has

issued an exposure draft ED 238

Consolidated Financial Statements

– Australian Implementation

Guidance for Not-for-Profit Entities

that explains and illustrates how

the principles in the Standard

apply from the perspective of not-

for-profit entities in the private and

public sectors.

1-Jan-14

FR 16

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

Not-for-profit entities are

not permitted to apply

this Standard prior to the

mandatory application

date. Impacts on the

level and nature of the

disclosures will be

assessed based on the

eventual implications

arising from AASB 10,

AASB 11 and AASB 128

Investments in

Associates and Joint

Ventures.

AASB 127 Separate

Financial Statements

AASB 12 Disclosure of

Interests in Other Entities

1-Jan-14 Not-for-profit entities are

not permitted to apply

this Standard prior to the

mandatory application

date. The AASB is

assessing the

applicability of principles

in AASB 127 in a not-for-

profit context. As such,

the impact will be

assessed after the

AASB’s deliberation.

This Standard requires disclosure

of information that enables users

of financial statements to evaluate

the nature of, and risks associated

with, interests in other entities and

the effects of those interests on

the financial statements. This

Standard replaces the disclosure

requirements in AASB 127

Separate Financial Statements and

AASB 131 Interests in Joint

Ventures. The exposure draft ED

238 proposes to add some

implementation guidance to AASB

12, explaining and illustrating the

definition of a ‘strucutured entity’

from a not-for-profit perspective.

1-Jan-14

AASB 1053 Application of

Tiers of Australian

Accounting Standards

This Standard establishes a

differential financial reporting

framework consisting of two tiers

of reporting requirements for

preparing general purpose financial

statements.

1-Jul-13 The Victorian

Government is currently

considering the impacts

of Reduced Disclosure

Requirements (RDRs) for

certain public sector

entities, and has not

decided if RDRs will be

implemented in the

Victorian public sector.

AASB 128 Investments in

Associates and Joint

Ventures

This revised Standard sets out the

requirements for the application of

the equity method when

accounting for investments in

associates and joint ventures.

1-Jan-14 Not-for-profit entities are

not permitted to apply

this Standard prior to the

mandatory application

date. The AASB is

assessing the

applicability of principles

in AASB 128 in a not-for-

profit context. As such,

the impact will be

assessed after the

AASB’s deliberation.

This revised Standard prescribes

the accounting and disclosure

requirements for investments in

subsidiaries, joint ventures and

associates when an entity prepares

separate financial statements.

FR 17

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 1: Statement of Significant Accounting Policies

(r) Category Groups

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.

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.

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

Care Assessment and support services.

Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health revenue/expenditure on public

hospital type services including palliative care facilities and rehabilitation facilities, as well as services provided

under the following agreements: Services that are provided or received by hospitals (or area health services) but

are delivered/received outside a hospital campus, services which have moved from a hospital to a community

setting since June 1998, services which fall within the agreed scope of inclusions under the new system, which have

been delivered within hospital’s i.e. in rural/remote areas.

Primary Health comprises revenue/expenditure for Community Health Services including health promotion and

counselling, physiotherapy, speech therapy, podiatry and occupational therapy.

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as

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).

East Grampians Health Service has used the following category groups for reporting purposes for the current and

previous financial years.

FR 18

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

No

te 2

: Reven

ue

HS

AH

SA

H&

CI

H&

CI

To

tal

To

tal

HS

AH

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H&

CI

H&

CI

To

tal

To

tal

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Reven

ue fr

om

Op

eratin

g A

ctiv

ities

Govern

ment G

rants

- Departm

ent o

f Health

8,3

15

16,4

91

-

-

8,3

15

16,4

91

8,3

15

16,4

91

-

-

8,3

15

16,4

91

- Vic

toria

n H

ealth

Fundin

g P

ool

8,8

40

-

-

-

8,8

40

-

8,8

40

-

-

-

8,8

40

-

- Departm

ent o

f Hum

an S

erv

ices

130

152

-

-

130

152

130

152

-

-

130

152

- Denta

l Health

Serv

ices V

icto

ria741

778

-

-

741

778

741

778

-

-

741

778

- Com

monw

ealth

Govern

ment

- Resid

entia

l Aged C

are

Subsid

y4,0

63

4,0

39

-

-

4,0

63

4,0

39

4,0

63

4,0

39

-

-

4,0

63

4,0

39

- Oth

er

1,5

44

1,2

51

-

-

1,5

44

1,2

51

1,5

44

1,2

51

-

-

1,5

44

1,2

51

To

tal G

overn

men

t Gran

ts2

3,6

33

2

2,7

11

-

-

2

3,6

33

2

2,7

11

2

3,6

33

2

2,7

11

-

-

2

3,6

33

2

2,7

11

Indire

ct C

ontrib

utio

ns b

y D

epartm

ent o

f Health

- Insura

nce

31

43

-

-

31

43

31

43

-

-

31

43

- Long S

erv

ice L

eave

51

142

-

-

51

142

51

142

-

-

51

142

To

tal I

nd

irect C

on

trib

utio

ns b

y D

ep

artm

en

t of

Health

82

1

85

-

-

8

2

18

5

82

1

85

-

-

8

2

18

5

Patie

nt a

nd R

esid

ent F

ees

- Patie

nt a

nd R

esid

ent F

ees (re

fer n

ote

2b)

1,0

98

985

-

-

1,0

98

985

1,0

98

985

-

-

1,0

98

985

- Resid

entia

l Aged C

are

(refe

r note

2b)

1,6

68

1,6

89

-

-

1,6

68

1,6

89

1,6

68

1,6

89

-

-

1,6

68

1,6

89

To

tal P

atie

nt &

Resid

en

t Fees

2,7

66

2

,67

4

-

-

2,7

66

2

,67

4

2,7

66

2

,67

4

-

-

2,7

66

2

,67

4

Com

merc

ial A

ctiv

ities &

Specific

Purp

ose F

unds

- Com

merc

ial d

iagnostic

Imagin

g-

-

1,0

63

749

1,0

63

749

-

-

1,0

63

749

1,0

63

749

- Cate

ring

-

-

261

489

261

489

-

-

261

489

261

489

- Cafe

teria

-

-

114

102

114

102

-

-

114

102

114

102

- Pro

perty

Incom

e-

-

22

20

22

20

-

-

22

20

22

20

To

tal B

usin

ess U

nits

& S

pecific

Pu

rp

ose F

un

ds

-

-

1,4

60

1

,36

0

1,4

60

1

,36

0

-

-

1,4

60

1

,36

0

1,4

60

1

,36

0

Donatio

ns &

Bequests

13

20

-

-

13

20

13

20

58

95

71

115

Share

of Jo

intly

Contro

lled R

eveneue (n

ote

19)

292

278

12

9

304

287

292

278

12

9

304

287

Oth

er R

evenue fro

m O

pera

ting A

ctiv

ities

661

566

51

78

712

644

661

566

51

78

712

644

Su

b-T

ota

l Reven

ue fr

om

Op

eratin

g A

ctiv

ities

27

,44

7

26

,43

4

1,5

23

1

,44

7

28

,97

0

27

,88

1

27

,44

7

26

,43

4

1,5

81

1

,54

2

29

,02

8

27

,97

6

Reven

ue fr

om

No

n-O

peratin

g A

ctiv

ities

Inte

rest &

Div

idends

-

-

-

-

-

-

-

-

57

66

57

66

Su

b-T

ota

l Reven

ue fr

om

No

n-O

peratin

g

Activ

ities

-

-

-

-

-

-

-

-

57

6

6

57

6

6

Reven

ue fr

om

Cap

ital P

urp

ose I

nco

me

Sta

te G

overn

ment C

apita

l Gra

nts

- Targ

ete

d C

apita

l Work

s a

nd E

quip

ment

1,0

95

845

-

-

1,0

95

845

1,0

95

845

-

-

1,0

95

845

Net G

ain

/(Loss) o

n D

isposal o

f Non-F

inancia

l Assets

(refe

r note

2c)

-

-

(23)

(1

3)

(2

3)

(1

3)

-

-

(2

3)

(1

3)

(2

3)

(1

3)

Capita

l Inte

rest

-

-

208

248

208

248

-

-

208

248

208

248

Donatio

ns &

Bequests

-

-

322

261

322

261

-

-

322

261

322

261

Oth

er C

apita

l Purp

ose In

com

e-

-

194

263

194

263

-

-

194

263

194

263

Su

b-T

ota

l Reven

ue fr

om

Cap

ital P

urp

ose

In

co

me

1,0

95

8

45

7

01

7

59

1

,79

6

1,6

04

1

,09

5

84

5

70

1

75

9

1,7

96

1

,60

4

To

tal R

even

ue (

refe

r to

no

te 2

a)

28

,54

2

27

,27

9

2,2

24

2

,20

6

30

,76

6

29

,48

5

28

,54

2

27

,27

9

2,3

39

2

,36

7

30

,88

1

29

,64

6

PA

REN

TC

ON

SO

LID

ATE

D

Indire

ct c

ontrib

utio

ns b

y D

epartm

ent o

f Health

: Departm

ent o

f Health

makes c

erta

in p

aym

ents

on b

ehalf o

f the H

ealth

Serv

ice. T

hese a

mounts

have b

een b

rought to

account in

dete

rmin

ing th

e o

pera

ting re

sult fo

r the y

ear b

y

record

ing th

em

as re

venue a

nd e

xpenses.

FR

19

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

Note

2a: A

naly

sis

of R

even

ue b

y S

ou

rce

(b

ased

on

the c

on

solid

ate

d v

iew

of n

ote

2)

Oth

er

Tota

l2

01

32

01

32

01

32

01

32

01

32

01

32

01

3$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0R

even

ue fr

om

Servic

es S

up

po

rte

d b

y H

ealth

Servic

es A

greem

en

t

Govern

ment G

rants

14,5

13

569

5,2

38

887

1,6

80

746

23,6

33

Indire

ct c

ontrib

utio

ns b

y D

epartm

ent o

f Health

68

1

8

1

3

1

82

Patie

nt &

Resid

ent F

ees (re

fer n

ote

2b)

906

-

1,6

31

87

97

45

2,7

66

Donatio

ns &

Bequests

(non c

apita

l)10

-

3

-

-

-

13

Share

of Jo

intly

Contro

lled R

evenue (n

ote

19)

161

9

80

12

21

9

292

Oth

er R

evenue fro

m O

pera

ting A

ctiv

ities

286

95

128

40

103

9

661

Capita

l Purp

ose In

com

e (re

fer n

ote

2)

986

-

60

50

-

(1

)

1,0

95

Su

b-T

ota

l Reven

ue fr

om

Servic

es S

up

po

rte

d b

y

Health

Servic

es A

greem

en

t1

6,9

30

6

74

7

,14

8

1,0

77

1

,90

4

80

9

28

,54

2

Reven

ue fr

om

Servic

es S

up

po

rte

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

Donatio

ns &

Bequests

(non c

apita

l)-

-

-

-

-

58

58

Com

merc

ial A

ctiv

ities a

nd S

pecific

Purp

ose F

unds

-

-

-

-

-

1,4

60

1,4

60

Share

of Jo

intly

Contro

lled R

evenue (n

ote

19)

-

-

-

-

-

12

12

Oth

er

-

-

-

-

-

108

108

Capita

l Purp

ose In

com

e (re

fer n

ote

2)

-

-

-

-

-

701

701

Su

b-T

ota

l Reven

ue fr

om

Servic

es S

up

po

rte

d b

y

Ho

sp

ital a

nd

Co

mm

un

ity I

nitia

tives

-

-

-

-

-

2,3

39

2

,33

9

To

tal R

even

ue

16

,93

0

67

4

7,1

48

1

,07

7

1,9

04

3

,14

8

30

,88

1

Indire

ct c

ontrib

utio

ns b

y D

epartm

ent o

f Health

: Departm

ent o

f Health

makes c

erta

in p

aym

ents

on b

ehalf o

f the H

ealth

Serv

ice. T

hese a

mounts

have b

een b

rought to

account in

dete

rmin

ing th

e o

pera

ting re

sult fo

r the y

ear b

y re

cord

ing th

em

as re

venues a

nd e

xpenses.

Revenues a

nd e

xpenses o

f Support S

erv

ices a

re d

istrib

ute

d to

cate

gorie

s u

sin

g a

num

ber o

f allo

catio

n b

ases in

clu

din

g e

stim

ate

d u

sage, p

erc

enta

ge o

f tota

l revenue

and e

quiv

ale

nt fu

ll time (E

FT) s

taff.

Prim

ary

Health

Ag

ed

Care

Am

bu

lato

ry

Ad

mitte

d

Patie

nts

RA

C in

cl.

Men

tal

Health

FR

20

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

Note

2a: A

naly

sis

of R

even

ue b

y S

ou

rce (

Co

ntin

ued

)(b

ased

on

the c

on

solid

ate

d v

iew

of n

ote

2)

Oth

er

Tota

l2

01

22

01

22

01

22

01

22

01

22

01

22

01

2$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0R

even

ue fr

om

Servic

es S

up

po

rte

d b

y H

ealth

Servic

es A

greem

en

t

Govern

ment G

rants

13,5

78

565

5,2

18

902

1,6

61

787

22,7

11

Indire

ct c

ontrib

utio

ns b

y D

epartm

ent o

f Health

167

1

10

2

3

2

185

Patie

nt &

Resid

ent F

ees (re

fer n

ote

2b)

788

-

1,6

60

75

90

61

2,6

74

Donatio

ns &

Bequests

(non c

apita

l)20

-

-

-

-

-

20

Share

of Jo

intly

Contro

lled R

evenue (n

ote

19)

178

6

57

9

17

11

278

Oth

er R

evenue fro

m O

pera

ting A

ctiv

ities

252

59

90

28

120

17

566

Capita

l Purp

ose In

com

e (re

fer n

ote

2)

816

-

-

29

-

-

845

Su

b-T

ota

l Reven

ue fr

om

Servic

es S

up

po

rte

d b

y

Health

Servic

es A

greem

en

t1

5,7

99

6

31

7

,03

5

1,0

45

1

,89

1

87

8

27

,27

9

Reven

ue fr

om

Servic

es S

up

po

rte

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

Donatio

ns &

Bequests

(non c

apita

l)-

-

-

-

-

95

95

Com

merc

ial A

ctiv

ities &

Specific

Purp

ose F

unds

-

-

-

-

-

1,3

60

1,3

60

Oth

er

-

-

-

-

-

144

144

Capita

l Purp

ose In

com

e (re

fer n

ote

2)

-

-

-

-

-

759

759

Su

b-T

ota

l Reven

ue fr

om

Servic

es S

up

po

rte

d b

y

Ho

sp

ital a

nd

Co

mm

un

ity I

nitia

tives

-

-

-

-

-

2,3

67

2

,36

7

To

tal R

even

ue

15

,79

9

63

1

7,0

35

1

,04

5

1,8

91

3

,24

5

29

,64

6

Indire

ct c

ontrib

utio

ns b

y D

epartm

ent o

f Health

: Departm

ent o

f Health

makes c

erta

in p

aym

ents

on b

ehalf o

f the H

ealth

Serv

ice. T

hese a

mounts

have b

een b

rought to

account in

dete

rmin

ing th

e o

pera

ting re

sult fo

r the y

ear b

y re

cord

ing th

em

as re

venues a

nd e

xpenses.

Revenues a

nd e

xpenses o

f Support S

erv

ices a

re d

istrib

ute

d to

cate

gorie

s u

sin

g a

num

ber o

f allo

catio

n b

ases in

clu

din

g e

stim

ate

d u

sage, p

erc

enta

ge o

f tota

l revenue

and e

quiv

ale

nt fu

ll time (E

FT) s

taff.

RA

C in

cl.

Men

tal

Health

Prim

ary

Health

Ag

ed

Care

Am

bu

lato

ry

Ad

mitte

d

Patie

nts

FR

21

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 2b: Patient and Resident Fees

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

$'000 $'000 $'000 $'000Patient and Resident Fees Raised

Recurrent:

Acute

– Inpatients 870 759 870 759

Residential Aged Care

– Generic 1,204 1,190 1,204 1,190

– Residential Accommodation Payments 464 499 464 499

Other 228 226 228 226

Total Recurrent 2,766 2,674 2,766 2,674

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

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

Proceeds from Disposals of Non-Current Assets

Plant and Equipment 5 9 5 9

Motor Vehicles 135 74 135 74 Total Proceeds from Disposal of Non-Current

Assets 140 83 140 83

Less: Written Down Value of Non-Current Assets

Sold

Motor Vehicles 163 96 163 96 Total Written Down Value of Non-Current Assets

Sold 163 96 163 96

Net gains/(losses) on Disposal of Non-Current

Assets (23) (13) (23) (13)

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

FR 22

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

Note

3: E

xp

en

ses

HS

AH

SA

H&

CI

H&

CI

To

tal

To

tal

HS

AH

SA

H&

CI

H&

CI

To

tal

To

tal

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Em

plo

yee E

xp

en

ses

Sala

ries &

Wages

15,0

96

15,1

02

905

875

16,0

01

15,9

77

15,0

96

15,1

02

905

875

16,0

01

15,9

77

Work

Cover P

rem

ium

205

205

12

12

217

217

205

205

12

12

217

217

Departu

re P

ackages

126

62

1

-

127

62

126

62

1

-

127

62

Long S

erv

ice L

eave

446

534

23

22

469

556

446

534

23

22

469

556

Supera

nnuatio

n1,4

22

1,4

00

69

69

1,4

91

1,4

69

1,4

22

1,4

00

69

69

1,4

91

1,4

69

To

tal E

mp

loyee E

xp

en

ses

17

,29

5

17

,30

3

1,0

10

9

78

1

8,3

05

1

8,2

81

1

7,2

95

1

7,3

03

1

,01

0

97

8

18

,30

5

18

,28

1

No

n S

ala

ry L

ab

ou

r C

osts

Fees fo

r Vis

iting M

edic

al O

fficers

2,1

59

2,2

98

-

-

2,1

59

2,2

98

2,1

59

2,2

98

-

-

2,1

59

2,2

98

Contra

cto

rs a

nd c

onsulta

nts

314

310

18

43

332

353

314

310

18

43

332

353

To

tal N

on

Sala

ry L

ab

ou

r C

osts

2,4

73

2

,60

8

18

4

3

2,4

91

2

,65

1

2,4

73

2

,60

8

18

4

3

2,4

91

2

,65

1

Su

pp

lies &

Co

nsu

mab

les

Dru

g S

upplie

s

789

735

1

1

790

736

789

735

1

1

790

736

S100 D

rugs

-

45

-

-

-

45

-

45

-

-

-

45

Medic

al, S

urg

ical S

upplie

s a

nd P

rosth

esis

1,8

67

1,3

83

423

284

2,2

90

1,6

67

1,8

67

1,3

83

423

284

2,2

90

1,6

67

Path

olo

gy S

upplie

s132

131

-

-

132

131

132

131

-

-

132

131

Food S

upplie

s499

605

169

230

668

835

499

605

169

230

668

835

To

tal S

up

plie

s &

Co

nsu

mab

les

3,2

87

2

,89

9

59

3

51

5

3,8

80

3

,41

4

3,2

87

2

,89

9

59

3

51

5

3,8

80

3

,41

4

Oth

er E

xp

en

ses fr

om

Co

ntin

uin

g O

peratio

ns

Dom

estic

Serv

ices &

Supplie

s523

505

24

28

547

533

523

505

24

28

547

533

Fuel, L

ight, P

ow

er a

nd W

ate

r466

359

64

38

530

397

466

359

64

38

530

397

Insura

nce c

osts

funded b

y th

e D

epartm

ent o

f Health

273

247

1

2

274

249

273

247

1

2

274

249

Moto

r Vehic

le E

xpenses

102

97

4

5

106

102

102

97

4

5

106

102

Repairs

& M

ain

tenance

556

422

29

34

585

456

556

422

29

34

585

456

Main

tenance C

ontra

cts

167

131

29

37

196

168

167

131

29

37

196

168

Patie

nt T

ransport

192

155

-

-

192

155

192

155

-

-

192

155

Bad &

Doubtfu

l Debts

-

5

(3)

1

(3

)

6

-

5

(3)

1

(3

)

6

Lease E

xpenses

39

56

2

2

41

58

39

56

2

2

41

58

Adm

inis

trativ

e E

xpenses

1,3

12

1,2

26

103

106

1,4

15

1,3

32

1,3

12

1,2

26

113

167

1,4

25

1,3

93

Share

of Jo

intly

Contro

lled E

xpenses (n

ote

19)

301

303

12

9

313

312

301

303

12

9

313

312

Audit F

ees

- VAG

O - A

udit o

f Fin

ancia

l Sta

tem

ents

9

14

-

1

9

15

9

14

3

4

12

18

- Oth

er

25

22

1

1

26

23

25

22

1

1

26

23

To

tal O

ther E

xp

en

ses fr

om

Co

ntin

uin

g O

peratio

ns

3,9

65

3

,54

2

26

6

26

4

4,2

31

3

,80

6

3,9

65

3

,54

2

27

9

32

8

4,2

44

3

,87

0

Exp

en

ditu

re u

sin

g C

ap

ital P

urp

ose I

nco

me

Oth

er E

xpenses

133

101

53

55

186

156

133

101

53

55

186

156

To

tal O

ther E

xp

en

ses

13

3

10

1

53

5

5

18

6

15

6

13

3

10

1

53

5

5

18

6

15

6

To

tal E

xp

en

ditu

re u

sin

g C

ap

ital P

urp

ose I

nco

me

13

3

10

1

53

5

5

18

6

15

6

13

3

10

1

53

5

5

18

6

15

6

Depre

cia

tion (re

fer n

ote

4)

2,5

03

2,4

14

271

262

2,7

74

2,6

76

2,5

03

2,4

14

271

262

2,7

74

2,6

76

To

tal

2,5

03

2

,41

4

27

1

26

2

2,7

74

2

,67

6

2,5

03

2

,41

4

27

1

26

2

2,7

74

2

,67

6

To

tal E

xp

en

ses

29

,65

6

28

,86

7

2,2

11

2

,11

7

31

,86

7

30

,98

4

29

,65

6

28

,86

7

2,2

24

2

,18

1

31

,88

0

31

,04

8

PA

REN

TC

ON

SO

LID

ATED

FR

23

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

Ea

st G

ram

pia

ns H

ealth

Serv

ice

An

nual R

eport 2

012/2

013

No

te 3

a: A

naly

sis

of E

xp

en

ses b

y S

ou

rce

(b

ased

on

the c

on

so

lidate

d v

iew

of N

ote

3)

Ad

mitte

d

Patie

nts

Am

bu

lato

ry

RA

C in

cl.

Men

tal

Health

Ag

ed

Care

Prim

ary

Health

Oth

er

To

tal

20

13

20

13

20

13

20

13

20

13

20

13

20

13

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Servic

es S

up

po

rte

d b

y H

ealth

Servic

es A

greem

en

tEm

plo

yee E

xpenses

8,6

55

513

5,4

07

732

1,4

35

553

17,2

95

Non S

ala

ry L

abour C

osts

2,3

31

29

73

11

21

8

2,4

73

Supplie

s &

Consum

able

s2,6

38

14

483

42

44

66

3,2

87

Share

of Jo

intly

Contro

lled E

xpense (n

ote

19)

166

9

82

13

22

9

301

Oth

er E

xpenses fro

m C

ontin

uin

g O

pera

tions

2,1

93

60

975

144

209

83

3,6

64

Su

b-T

ota

l Exp

en

ses fr

om

Servic

es S

up

po

rte

d b

y H

ealth

Servic

es

Ag

reem

en

t1

5,9

83

6

25

7

,02

0

94

2

1,7

31

7

19

2

7,0

20

-

Servic

es S

up

po

rte

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

Em

plo

yee E

xpenses

-

-

-

-

-

1,0

10

1,0

10

Non S

ala

ry L

abour C

osts

-

-

-

-

-

18

18

Supplie

s &

Consum

able

s-

-

-

-

-

593

593

Share

of Jo

intly

Contro

lled E

xpense (n

ote

19)

-

-

-

-

-

12

12

Oth

er E

xpenses fro

m C

ontin

uin

g O

pera

tions

-

-

-

-

-

267

267

Su

b-T

ota

l Exp

en

se fr

om

Servic

es S

up

po

rte

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

-

-

-

-

-

1,9

00

1

,90

0

Exp

en

ditu

re u

sin

g C

ap

ital P

urp

ose I

nco

me

Oth

er E

xpenses

-

-

-

-

-

186

186

Su

b-T

ota

l Exp

en

ditu

re u

sin

g C

ap

ital P

urp

ose I

nco

me

-

-

-

-

-

18

6

18

6

Depre

cia

tion (re

fer n

ote

4)

1,3

00

26

908

112

140

288

2,7

74

Su

b-to

tal E

xp

en

ditu

re fr

om

Servic

es s

up

po

rte

d b

y H

ealth

Servic

es

Ag

reem

en

t an

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

1,3

00

2

6

90

8

11

2

14

0

28

8

2,7

74

To

tal E

xp

en

ses

17

,28

3

65

1

7,9

28

1

,05

4

1,8

71

3

,09

3

31

,88

0

Revenues a

nd e

xpenses o

f Support S

erv

ices a

re d

istrib

ute

d to

cate

gorie

s u

sin

g a

num

ber o

f allo

catio

n b

ases in

clu

din

g e

stim

ate

d u

sage, p

erc

enta

ge o

f tota

l revenue a

nd e

quiv

ale

nt fu

ll time (E

FT)

sta

ff.

FR

24

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

Ea

st G

ram

pia

ns H

ealth

Serv

ice

An

nual R

eport 2

012/2

013

No

te 3

a: A

naly

sis

of E

xp

en

ses b

y S

ou

rce (

Co

ntin

ued

)(b

ased

on

the c

on

so

lidate

d v

iew

of N

ote

3)

Ad

mitte

d

Patie

nts

Am

bu

lato

ry

RA

C in

cl.

Men

tal

Health

Ag

ed

Care

Prim

ary

Health

Oth

er

To

tal

20

12

20

12

20

12

20

12

20

12

20

12

20

12

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Servic

es S

up

po

rte

d b

y H

ealth

Servic

es A

greem

en

tEm

plo

yee E

xpenses

8,4

03

453

5,4

21

817

1,5

09

700

17,3

03

Non S

ala

ry L

abour C

osts

2,4

79

23

61

10

22

13

2,6

08

Supplie

s &

Consum

able

s2,1

11

19

569

46

53

101

2,8

99

Share

of Jo

intly

Contro

lled E

xpense (n

ote

19)

194

6

62

9

19

13

303

Oth

er E

xpenses fro

m C

ontin

uin

g O

pera

tions

1,8

58

46

867

110

238

120

3,2

39

Su

b-T

ota

l Exp

en

ses fr

om

Servic

es S

up

po

rte

d b

y H

ealth

Servic

es

Ag

reem

en

t1

5,0

45

5

47

6

,98

0

99

2

1,8

41

9

47

2

6,3

52

Servic

es S

up

po

rte

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

Em

plo

yee E

xpenses

-

-

-

-

-

978

978

Non S

ala

ry L

abour C

osts

-

-

-

-

-

43

43

Supplie

s &

Consum

able

s-

-

-

-

-

515

515

Share

of Jo

intly

Contro

lled E

xpense (n

ote

19)

-

-

-

-

-

9

9

Oth

er E

xpenses fro

m C

ontin

uin

g O

pera

tions

-

-

-

-

-

319

319

Su

b-T

ota

l Exp

en

se fr

om

Servic

es S

up

po

rte

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

-

-

-

-

-

1,8

64

1

,86

4

Exp

en

ditu

re u

sin

g C

ap

ital P

urp

ose I

nco

me

Oth

er E

xpenses

-

-

-

-

-

156

156

Su

b-T

ota

l Exp

en

ditu

re u

sin

g C

ap

ital P

urp

ose I

nco

me

-

-

-

-

-

15

6

15

6

Depre

cia

tion (re

fer n

ote

4)

1,2

54

25

876

108

135

278

2,6

76

Su

b-to

tal E

xp

en

ditu

re fr

om

Servic

es s

up

po

rte

d b

y H

ealth

Servic

es

Ag

reem

en

t an

d b

y H

osp

ital a

nd

Co

mm

un

ity I

nitia

tives

1,2

54

2

5

87

6

10

8

13

5

27

8

2,6

76

To

tal E

xp

en

ses

16

,29

9

57

2

7,8

56

1

,10

0

1,9

76

3

,24

5

31

,04

8

Revenues a

nd e

xpenses o

f Support S

erv

ices a

re d

istrib

ute

d to

cate

gorie

s u

sin

g a

num

ber o

f allo

catio

n b

ases in

clu

din

g e

stim

ate

d u

sage, p

erc

enta

ge o

f tota

l revenue a

nd e

quiv

ale

nt fu

ll time (E

FT)

sta

ff.

FR

25

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

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

Diagnostic Imaging 1,288 1,084 1,288 1,084

Catering 577 755 577 755

Property Expenses 27 109 27 109

Fundraising and Community Support 6 233 6 233

TOTAL 1,898 2,181 1,898 2,181

Note 4: Depreciation

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

$'000 $'000 $'000 $'000Depreciation

Buildings 2,083 2,060 2,083 2,060

Plant & Equipment 332 323 332 323

Medical Equipment 359 293 359 293

Total Depreciation 2,774 2,676 2,774 2,676

Note 3b: Analysis of Expenses by Internal and Restricted

Specific Purpose Funds for Services Supported by Hospital and

Community Initiatives

FR 26

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 5: Cash and Cash Equivalents

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

Cash on Hand 3 2 3 2

Cash at Bank 1,230 1,233 1,239 1,277

Short Term Money Market 6,000 6,000 7,260 7,140

Jointly Controlled Cash and Cash Equivalents (note 19) 91 45 91 45

TOTAL 7,324 7,280 8,593 8,464

Represented by:

Cash for Health Service Operations (as per Cash Flow

Statement) 4,387 4,205 5,656 5,389

Cash for Monies Held in Trust

- Cash on Hand 1 1 1 1

- Cash at Bank 750 750 750 750

- Short Term Money Market 2,186 2,324 2,186 2,324

TOTAL 7,324 7,280 8,593 8,464

Note 6: Receivables

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

CURRENT

Contractual

Inter Hospital Debtors 51 102 51 102

Trade Debtors 311 113 311 113

Jointly Controlled Receivables (note 19) 67 89 67 89

Patient Fees 252 316 252 316

Accrued Investment Income 53 54 60 57

Accrued Revenue - Other 101 99 114 99

Less Allowance for Doubtful Debts

- Trade Debtors (1) (2) (1) (2)

- Patient Fees (45) (49) (45) (49)

789 722 809 725

Statutory

GST Receivable 315 77 315 77

TOTAL CURRENT RECEIVABLES 1,104 799 1,124 802

NON CURRENT

Statutory

Long Service Leave - Department of Health 723 673 723 673

TOTAL NON-CURRENT RECEIVABLES 723 673 723 673

TOTAL RECEIVABLES 1,827 1,472 1,847 1,475

(a) Movement in the Allowance for doubtful contractual receivables

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

Balance at beginning of year 51 51 51 51

Amounts written off during the year (2) (3) (2) (3)

Increase/(decrease) in allowance recognised in net result (3) 3 (3) 3

Balance at end of year 46 51 46 51

(b) Ageing analysis of receivables

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

(c) Nature and extent of risk arising from receivables

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

For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-term

deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value,

net of outstanding bank overdrafts.

FR 27

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 7: Inventories

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

$'000 $'000 $'000 $'000Pharmaceuticals

At cost 10 15 10 15

Medical and Surgical Lines

At cost 36 35 36 35

TOTAL INVENTORIES 46 50 46 50

Note 8: Other Assets

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

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

Prepayments 139 52 139 52

Rental Property Bonds 5 5 5 5

Jointly Controlled Other Assets (note 19) 3 1 3 1

CURRENT 147 58 147 58

TOTAL 147 58 147 58

Note 9: Property, Plant & Equipment

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

Land

Land at Fair Value 2,063 2,063 2,063 2,063

Total Land 2,063 2,063 2,063 2,063

Buildings

Buildings Under Construction at cost 1,157 468 1,157 468

Buildings at Fair Value 28,585 33,359 28,585 33,359

Less Accumulated Depreciation - (6,065) - (6,065)

Total Buildings 29,742 27,762 29,742 27,762

Plant and Equipment

Plant and Equipment at Fair Value 3,478 3,331 3,478 3,331

Less Accumulated Depreciation (2,115) (1,891) (2,115) (1,891)

Total Plant and Equipment 1,363 1,440 1,363 1,440

Medical Equipment

Medical Equipment at Fair Value 4,040 3,675 4,040 3,675

Less Accumulated Depreciation (2,274) (1,914) (2,274) (1,914)

Total Medical Equipment 1,766 1,761 1,766 1,761

Jointly Controlled Property, Plant & EquipmentJointly Controlled Property, Plant & Equipment at Fair

Value 129 107 129 107

Less Accumulated Depreciation (64) (59) (64) (59)

Total Jointly Controlled Property, Plant &

Equipment 65 48 65 48

TOTAL 34,999 33,074 34,999 33,074

FR 28

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

Note

9: P

ro

perty

, Pla

nt &

Eq

uip

men

t (C

on

tinu

ed

)

Lan

dB

uild

ing

sP

lan

t &M

ed

ical

Join

tly

Con

trolle

dTota

l

Eq

uip

men

tEq

uip

men

tP

P&

E

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Bala

nce a

t 1 J

uly

20

11

2,0

63

2

8,3

96

1

,60

1

1,4

69

4

0

33

,56

9

Additio

ns

-

1,2

93

489

488

-

2,2

70

Dis

posals

-

-

(97)

-

-

(9

7)

Movem

ent in

Join

tly C

ontro

lled P

roperty

, Pla

nt &

Equip

ment (n

ote

19)

-

-

-

-

8

8

Depre

cia

tion (n

ote

4)

-

(2,0

60)

(3

23)

(2

93)

-

(2

,676)

Bala

nce a

t 1 J

uly

20

12

2,0

63

2

7,7

62

1

,44

0

1,7

61

4

8

33

,07

4

Additio

ns

-

1,3

21

419

364

-

2,1

04

Dis

posals

-

-

(164)

-

-

(1

64)

Revalu

atio

n In

cre

ments

/(Decre

ments

)-

2,7

42

-

-

-

2,7

42

Movem

ent in

Join

tly C

ontro

lled P

roperty

, Pla

nt &

Equip

ment (n

ote

19)

-

-

-

-

17

17

Depre

cia

tion (n

ote

4)

-

(2,0

83)

(3

32)

(3

59)

-

(2

,774)

Bala

nce a

t 30

Ju

ne 2

01

32

,06

3

29

,74

2

1,3

63

1

,76

6

65

3

4,9

99

Lan

d a

nd

bu

ildin

gs c

arrie

d a

t valu

atio

n

Reconcilia

tions o

f the c

arry

ing a

mounts

of e

ach c

lass o

f asset fo

r the c

onsolid

ate

d e

ntity

at th

e b

egin

nin

g a

nd e

nd o

f the p

revio

us a

nd c

urre

nt

financia

l year is

set o

ut b

elo

w.

A m

anageria

l revalu

atio

n o

f East G

ram

pia

ns H

ealth

Serv

ice's

land a

nd b

uild

ings w

as p

erfo

rmed w

ith a

n e

ffectiv

e d

ate

of 3

0 Ju

ne 2

013 to

refle

ct th

e fa

ir valu

e o

f

the la

nd a

nd b

uild

ings. T

he m

anageria

l revalu

atio

n w

as p

erfo

rmed b

ased o

n v

alu

es c

alc

ula

ted u

sin

g V

icto

rian V

alu

er G

enera

l (VG

V) in

dic

es. A

schedule

d

revalu

atio

n o

f East G

ram

pia

ns H

ealth

Serv

ice's

land a

nd b

uild

ings w

ill be c

onducte

d b

y a

VG

V a

ppro

ved v

alu

er fo

r 30 Ju

ne 2

014 re

portin

g.

FR

29

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 10: Payables

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

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

CURRENT

Contractual

Trade Creditors 1,540 892 1,540 892

Accrued Expenses 329 298 332 301

Salary Packaging 4 - 4 -

Jointly Controlled Payables (note 19) 104 53 104 53

1,977 1,243 1,980 1,246

Statutory

Department of Health 473 229 473 229

473 229 473 229

TOTAL CURRENT 2,450 1,472 2,453 1,475

TOTAL 2,450 1,472 2,453 1,475

(a) Maturity analysis of payables

Please refer to note 15c for the ageing analysis of contractual payables.

(b) Nature and extent of risk arising from payables

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

FR 30

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 11: Provisions

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

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

Current Provisions

Employee Benefits (i)

- Unconditional and expected to be settled within 12

months (ii) 1,845 2,012 1,845 2,012

- Unconditional and expected to be settled after 12

months (iii) 1,621 1,510 1,621 1,510

3,466 3,522 3,466 3,522

Provisions related to Employee Benefit On-Costs

- Unconditional and expected to be settled within 12

months (ii) 221 241 221 241

- Unconditional and expected to be settled after 12

months (iii) 195 181 195 181

416 422 416 422

Total Current Provisions 3,882 3,944 3,882 3,944

Non-Current Provisions

Employee Benefits (i) 545 590 545 590

Provisions related to Employee Benefit On-Costs 65 71 65 71

Total Non-Current Provisions 610 661 610 661

Total Provisions 4,492 4,605 4,492 4,605

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costs

Unconditional LSL Entitlement 1,965 1,840 1,965 1,840

Annual Leave Entitlements 1,516 1,423 1,516 1,423

Accrued Wages and Salaries 339 623 339 623

Accrued Days Off 62 58 62 58

Non-Current Employee Benefits and related on-

costs

Conditional Long Service Leave Entitlements (iii) 610 661 610 661

Total Employee Benefits 4,492 4,605 4,492 4,605

On-Costs

Current On-Costs 416 422 416 422

Non-Current On-Costs 65 71 65 71

Total On-Costs 481 493 481 493

Total Employee Benefits and Related On-Costs 4,492 4,605 4,492 4,605

Notes:

(ii) The amounts disclosed are nominal amounts

(iii) The amounts disclosed are discounted to present values

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

(b) Movements in provisions $'000 $'000 $'000 $'000

Movement in Long Service Leave:

Balance at start of year 2,501 2,197 2,501 2,197

Provision made during the year

- Revaluations (30) 189 (30) 189

- Expense recognising Employee Service 499 367 499 367

Settlement made during the year (395) (252) (395) (252)

Balance at end of year 2,575 2,501 2,575 2,501

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not

including on-costs.

FR 31

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 12: Other Liabilities

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

CURRENT

Monies Held in Trust*

- Patient Monies Held in Trust* 42 25 42 25

- Accommodation Bonds (Refundable Entrance Fees)* 2,891 3,047 2,891 3,047

- Other Monies Held in Trust* 4 3 4 3

Other 100 58 100 58

Total Current 3,037 3,133 3,037 3,133

Total Other Liabilities 3,037 3,133 3,037 3,133

* Total Monies Held in Trust

Represented by the following assets:

Cash Assets (refer to note 5) 2,937 3,075 2,937 3,075

TOTAL 2,937 3,075 2,937 3,075

Note 13: Equity

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

(a) Reserves

Property, Plant & Equipment Revaluation Surplus

Balance at the beginning of the reporting period 10,995 10,995 10,995 10,995

Revaluation Increment/(Decrements)

- Buildings 2,741 - 2,741 -

Balance at the end of the reporting period* 13,736 10,995 13,736 10,995

* Represented by:

- Land 1,825 1,825 1,825 1,825

- Buildings 11,911 9,170 11,911 9,170

13,736 10,995 13,736 10,995

General Purpose Reserve

Balance at the beginning of the reporting period 123 118 123 118

Transfer to General Reserve

- Allied Health CRAFT Fund 8 - 8 -

- A Laidlaw Bursary Reserve 8 5 8 5

Balance at the end of the reporting period 139 123 139 123

Restricted Specific Purpose Reserve

Balance at the beginning of the reporting period 590 590 590 590

Balance at the end of the reporting period 590 590 590 590

Total Reserves 14,465 11,708 14,465 11,708

(b) Contributed Capital

Balance at the beginning of the reporting period 19,896 19,896 19,896 19,896

Balance at the end of the reporting period 19,896 19,896 19,896 19,896

(c) Accumulated Surpluses/(Deficits)

Balance at the beginning of the reporting period 1,120 2,624 2,304 3,711

Net Result for the Year (1,101) (1,499) (999) (1,402)

Transfers to Reserve

- Allied Health CRAFT Fund (8) - (8) -

- A Laidlaw Bursary Reserve (8) (5) (8) (5)

Balance at the end of the reporting period 3 1,120 1,289 2,304

Total Equity at end of financial year 34,364 32,724 35,650 33,908

FR 32

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity2013 2012 2013 2012$'000 $'000 $'000 $'000

Net Result for the Year (1,101) (1,499) (999) (1,402)

Depreciation & Amortisation 2,774 2,676 2,774 2,676

Provision for Doubtful Receivables (5) (1) (5) (1)

Change in Inventories 4 (10) 4 (10)

Net (Gain)/Loss from Sale of Plant and Equipment 23 13 23 13

Change in Operating Assets & Liabilities

(Increase)/Decrease in Receivables (352) 362 (369) 380

(Increase)/Decrease in Other Assets 121 (45) 121 (45)

(Increase)/Decrease in Prepayments (87) 237 (87) 237

Increase/(Decrease) in Payables 978 (762) 978 (762)

Increase/(Decrease) in Provisions (113) 803 (113) 803

Increase/(Decrease) in Other Liabilities (96) (122) (96) (122)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING

ACTIVITIES 2,146 1,652 2,231 1,767

Note 15: Financial Instruments

(a) Financial Risk Management Objectives and Policies

East Grampians Health Service's principal financial instruments are comprise of:

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Payables (excluding statutory payables)

- Accommodation Bonds

Categorisation of financial instruments

Carrying

Amount

Carrying

Amount 2013 2012$'000 $'000

Financial Assets

Cash and cash equivalents 8,593 8,464

Loans and Receivables 809 725

Total Financial Assets (i) 9,402 9,189

Financial Liabilities

At Amortised Cost 5,017 4,379

Total Financial Liabilities (ii) 5,017 4,379

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

Net holding

gain/(loss)

Net holding

gain/(loss)2013 2012

$'000 $'000Financial Assets

Cash and Cash Equivalents (i)

265 314

Loans and Receivables (i)

3 (6)

Total Financial Assets 268 308

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

Inflow/(Outflow) from Operating Activities

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

basis of measurement and the basis on which income and expenses are recognised, with respect to each class

of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage East Grampians Health Service's

financial risks within the government policy parameters.

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

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

(i) For cash and cash equivalents and loans or receivables, 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.

FR 33

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 15: Financial Instruments (continued)

(b) Credit Risk

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

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

2013

Financial Assets

Cash and Cash Equivalents 8,593 - - - 8,593

Receivables

- Trade Debtors - - - 362 362

- Other Receivables - - - 447 447

Total Financial Assets 8,593 - - 809 9,402

2012

Financial Assets

Cash and Cash Equivalents 8,464 - - - 8,464

Receivables

- Trade Debtors - - - 215 215

- Other Receivables - - - 510 510

Total Financial Assets 8,464 - - 725 9,189

Ageing analysis of Financial Asset as at 30 June

Less than

1 Month

1-3 Months 3 months -

1 Year

1-5 Years

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

2013

Financial Assets

Cash and Cash Equivalents 8,593 8,593 - - - - -

Receivables

- Trade Debtors 362 348 12 - 1 - 1

- Other Receivables 447 305 32 10 55 - 45

Total Financial Assets 9,402 9,246 44 10 56 - 46

2012

Financial Assets

Cash and Cash Equivalents 8,464 8,464 - - - - -

Receivables

- Trade Debtors 215 193 2 - 18 - 2

- Other Receivables 510 351 26 15 69 - 49

Total Financial Assets 9,189 9,008 28 15 87 - 51

Impaired

Financial

Assets

Credit risk arises from the contractual financial assets of the Health Service, which comprise cash and deposits and non-statutory

receivables financial assets. The Health Service’s exposure to credit risk arises from the potential default of a counter party on their

contractual obligations resulting in financial loss to the Health Service. Credit risk is measured at fair value and is monitored on a regular

basis.

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 East Grampians Health Service’s maximum exposure to credit risk without taking

account of the value of any collateral obtained.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Health Service will not be

able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than

60 days overdue, and changes in debtor credit ratings.

In addition, the Health Service does not engage in hedging for its contractual financial assets and mainly obtains contractual financial

assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, the Health

Service’s policy is to only deal with banks with high credit ratings.

Credit risk associated with the Health Service’s contractual financial assets is minimal because the main debtor is the Victorian

Government. For debtors other than the Government, it is the Health Service’s policy to only deal with entities with high credit ratings of a

minimum Triple-B rating and to obtain sufficient collateral or credit enhancements, where appropriate.

Consolidated

Carrying

Amount

Financial

institutions

Not Past Due

and Not

Impaired

Government

agencies

(AAA credit

rating)

Government

agencies

(BBB credit

rating)

Other

(min BBB

credit

rating)

Total

Past Due But Not Impaired

FR 34

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 15: Financial Instruments (continued)

(c) Liquidity Risk

Carrying

Amount

Contractual

Cash Flows

Less than

1 Month

1-3 Months 3 months -

1 Year

1-5 Years

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

2013

Financial Liabilities

Payables 1,980 1,980 1,980 - - -

Other Financial Liabilities

- Accommodation Bonds 2,891 2,891 2,891 - - -

- Other 146 146 146 - - -

Total Financial Liabilities 5,017 5,017 5,017 - - -

2012

Financial Liabilities

Payables 1,246 1,246 1,246 - - -

Other Financial Liabilities

- Accommodation Bonds 3,047 3,047 3,047 - - -

- Other 86 86 86 - - -

Total Financial Liabilities 4,379 4,379 4,379 - - -

The Board also recognises that, where obligated by specific legislation to quarantine financial assets to meet future financial

liabilities such as Aged Care Accommodation Bonds, that it does so without using these financial assets to meet day to day

liquidity needs.

In the context of East Grampians Health Service, liquidity risk refers to the risk that the Health Service will encounter difficulty

in meeting obligations associated with financial liabilities.

Financial instruments particular to East Grampians Health Service which would be subject to liquidity risk include:

- Other Liabilities

Monies Held In Trust and Aged Care Accommodation Bonds are paid in accordance with the terms or conditions stipulated under

the relevant legislation applying to them, for example the Aged Care Act (Cwlth) for the refunding of Aged Care Accommodation

Bonds.

Trade Creditors and Accruals are generally paid within trading terms. It is the Health Service's policy to monitor and review the

capabilities and credit worthiness of counter parties on a regular basis. The Health Service maintains a list of approved suppliers

and overlays a delegation of authority for supplies over certain monetary thresholds.

- Monies Held In Trust and Aged Care Accommodation Bonds

- Trade Creditors and Accruals

Maturity Dates

Maturity analysis of Financial Liabilities as at 30 June

The following table discloses the contractual maturity analysis for East Grampians Health Service's financial liabilities. For

interest rates applicable to each class of liability refer to individual notes to the financial statements.

East Grampians Health Service’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed

on the face of the balance sheet. It is the Board's policy to manage the organisation under the Financial Management Act to

ensure that it meets its financial obligations as and when they fall due.

FR 35

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 15: Financial Instruments (continued)

(d) Market Risk

Currency Risk

Interest Rate Risk

Other Price Risk

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

Weighted Carrying

Average Amount Fixed Variable Non-

Effective Interest Interest Interest

Interest Rate Rate Bearing

Rate (%) $'000 $'000 $'000 $'000

2013Financial Assets

Cash and Cash Equivalents 5.32 8,593 7,260 1,330 3

Receivables

- Trade Debtors - 362 - - 362

- Other Receivables - 447 - - 447

9,402 7,260 1,330 812

Financial Liabilities

Payables - 1,980 - - 1,980

Other Financial Liabilities

- Accommodation Bonds - 2,891 - - 2,891

- Other - 146 - - 146

5,017 - - 5,017

2012Financial Assets

Cash and Cash Equivalents 5.88 8,464 7,141 1,321 2

Receivables

- Trade Debtors - 215 - - 215

- Other Receivables - 510 - - 510

9,189 7,141 1,321 727

Financial Liabilities

Payables - 1,246 - - 1,246

Other Financial Liabilities

- Accommodation Bonds - 3,047 - - 3,047

- Other - 86 - - 86

4,379 - - 4,379

East Grampians Health Service'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.

Interest Rate Exposure

East Grampians Health Service 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.

Exposure to interest rate risk might arise primarily through the Health Service's interest bearing liabilities.

Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial

instruments. For financial liabilities, the health service mainly undertake financial liabilities with relatively

even maturity profiles.

East Grampians Health Service has not identified any other price risks.

FR 36

Note

s T

o a

nd

Form

ing P

art o

f the F

inan

cia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annu

al R

epo

rt 201

2/2

01

3

No

te 1

5: F

inan

cia

l In

str

um

en

ts (

co

ntin

ued

)

(d

) M

arket R

isk (

con

tinu

ed

)

Sen

sitiv

ity D

isclo

su

re A

naly

sis

Carryin

g

Am

ou

nt

Profit

Eq

uity

Profit

Eq

uity

Profit

Eq

uity

Profit

Eq

uity

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

20

13

Fin

an

cia

l Assets

Cash a

nd C

ash E

quiv

ale

nts

8,5

93

(8

6)

(8

6)

86

86

-

-

-

-

Receiv

able

s

- Tra

de D

ebto

rs362

-

-

-

-

-

-

-

-

- Oth

er R

eceiv

able

s447

-

-

-

-

-

-

-

-

Fin

an

cia

l Lia

bilitie

s

Payable

s1,9

80

-

-

-

-

-

-

-

-

Oth

er F

inancia

l Lia

bilitie

s

- Accom

modatio

n B

onds

2,8

91

-

-

-

-

-

-

-

-

- Oth

er

146

-

-

-

-

-

-

-

-

(8

6)

(8

6)

8

6

86

-

-

-

-

20

12

Fin

an

cia

l Assets

Cash a

nd C

ash E

quiv

ale

nts

8,4

64

(8

5)

(8

5)

85

85

-

-

-

-

Receiv

able

s

- Tra

de D

ebto

rs215

-

-

-

-

-

-

-

-

- Oth

er R

eceiv

able

s510

-

-

-

-

-

-

-

-

Fin

an

cia

l Lia

bilitie

s

Payable

s1,2

46

-

-

-

-

-

-

-

-

Oth

er F

inancia

l Lia

bilitie

s

- Accom

modatio

n B

onds

3,0

47

-

-

-

-

-

-

-

-

- Oth

er

86

-

-

-

-

-

-

-

-

(8

5)

(8

5)

8

5

85

-

-

-

-

In

terest R

ate

Ris

k

Oth

er P

ric

e R

isk

Takin

g in

to a

ccount p

ast p

erfo

rmance, fu

ture

expecta

tions, e

conom

ic fo

recasts

, and m

anagem

ent's

know

ledge a

nd e

xperie

nce o

f the fin

ancia

l mark

ets

,

East G

ram

pia

ns H

ealth

Serv

ice b

elie

ves th

e fo

llow

ing m

ovem

ents

are

'reasonably

possib

le' o

ver th

e n

ext 1

2 m

onth

s (B

ase ra

tes a

re s

ourc

ed fro

m th

e

Reserv

e B

ank o

f Austra

lia).

The fo

llow

ing ta

ble

dis

clo

ses th

e im

pact o

n n

et o

pera

ting re

sult a

nd e

quity

for e

ach c

ate

gory

of fin

ancia

l instru

ment h

eld

by E

ast G

ram

pia

ns H

ealth

Serv

ice a

t year e

nd a

s p

resente

d to

key m

anagem

ent p

ers

onnel, if c

hanges in

the re

levant ris

k o

ccur.

-1%

+1

%-1

%+

1%

- A s

hift o

f +1%

and -1

% in

mark

et in

tere

st ra

tes (A

UD

) from

year-e

nd ra

tes o

f 4.4

%;

- A p

ara

llel s

hift o

f +1%

and -1

% in

infla

tion ra

te fro

m y

ear-e

nd ra

tes o

f 2.4

%

FR

37

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 15: Financial Instruments (continued)

(e) Fair Value

Comparison between carrying amount and fair value

Consolidated

Carrying

Amount

Fair value Consolidated

Carrying

Amount

Fair value

2013 2013 2012 2012$'000 $'000 $'000 $'000

Financial Assets

Cash and Cash Equivalents 8,593 8,593 8,464 8,464

Receivables

- Trade Debtors 362 362 215 215

- Other Receivables 447 447 510 510

Total Financial Assets 9,402 9,402 9,189 9,189

Financial Liabilities

Payables 1,980 1,980 1,246 1,246

Other Financial Liabilities

- Accommodation Bonds 2,891 2,891 3,047 3,047

- Other 146 146 86 86

Total Financial Liabilities 5,017 5,017 4,379 4,379

• 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 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;

The fair values and net fair values of financial instrument assets and liabilities are determined as

follows:

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

the same as the carrying amounts.

East Grampians Health Services considers that the carrying amount of financial instrument assets

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

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

be paid in full.

• Level 3 - the fair value is determined in accordance with generally accepted pricing models

based on discounted cash flow analysis using unobservable market inputs.

East Grampians Health Services holds only Level 1 category financial assets.

FR 38

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 16: Commitments for Expenditure

Parent

Entity

Parent

Entity

Consolidated

Entity

Consolidated

Entity

2013 2012 2013 2012

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

Capital expenditure commitments

Payable:

Land and Buildings 861 1,418 861 1,418

Plant and Equipment 362 78 362 78

Total capital expenditure commitments 1,223 1,496 1,223 1,496

Land and Buildings

Not later than one year 1,223 1,496 1,223 1,496

Total 1,223 1,496 1,223 1,496

Lease commitments

Commitments in relation to leases contracted for at the

reporting date:

Operating Leases 79 124 79 124

Total lease commitments 79 124 79 124

Operating Leases

Cancellable:

Not later than one year 45 45 45 45

Later than 1 year and not later than 5 years 34 79 34 79

TOTAL 79 124 79 124

Total Commitments for Expenditure (inclusive of

GST) 1,302 1,620 1,302 1,620

Less GST recoverable from the Australian Tax Office (118) (147) (118) (147)

Total Commitments for Expenditure (exclusive of

GST) 1,184 1,473 1,184 1,473

Note 17: Contingent Assets and Contingent Liabilities

As at 30 June 2013 East Grampians Health Service has no knowledge of any contingent assets or liabilities. (Nil for

30 June 2012.)

FR 39

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

Ea

st G

ram

pia

ns H

ealth

Serv

ice

An

nual R

eport 2

012/2

013

No

te 1

8: O

peratin

g S

eg

men

ts

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

RE

VE

NU

EExte

rnal S

egm

ent R

evenue

7,1

48

7,0

35

17,6

04

16,4

30

6,0

72

6,1

15

30,8

24

29,5

80

To

tal R

even

ue

7,1

48

7

,03

5

17

,60

4

16

,43

0

6,0

72

6

,11

5

30

,82

4

29

,58

0

EX

PE

NS

ES

Exte

rnal S

egm

ent E

xpenses

(7,9

28)

(7,8

56)

(17,9

34)

(16,8

71)

(6,0

18)

(6,3

21)

(31,8

80)

(3

1,0

48)

To

tal E

xp

en

ses

(7

,92

8)

(7

,85

6)

(1

7,9

34

) (

16

,87

1)

(6

,01

8)

(6

,32

1)

(3

1,8

80

)

(3

1,0

48

)

Net R

esu

lt fro

m o

rd

inary a

ctiv

ities

(7

80

) (

82

1)

(3

30

) (

44

1)

54

(

20

6)

(1

,05

6)

(1

,46

8)

Inte

rest In

com

e -

- -

- 5

7

66

57

66

Net R

esu

lt for Y

ear

(7

80

) (

82

1)

(3

30

) (

44

1)

11

1

(1

40

)(9

99

)

(1

,40

2)

OT

HE

R I

NFO

RM

AT

IO

N

Segm

ent A

ssets

17,0

24

16,2

39

22,6

30

21,2

65

5,9

78

5,6

17

45,6

32

43,1

21

To

tal A

ssets

17

,02

4

16

,23

9

22

,63

0

21

,26

5

5,9

78

5

,61

7

45

,63

2

43

,12

1

Segm

ent L

iabilitie

s 5

,259

5,0

49

3,7

36

3,2

94

987

870

9,9

82

9,2

13

To

tal L

iab

ilities

5,2

59

5

,04

9

3,7

36

3

,29

4

98

7

87

0

9,9

82

9

,21

3

Acquis

ition o

f Pro

perty

, Pla

nt a

nd

Equip

ment

694

749

1,1

15

1,2

03

295

318

2,1

04

2,2

70

Depre

cia

tion &

Am

ortis

atio

n E

xpense

908

876

1,3

26

1,2

79

540

521

2,7

74

2,6

76

The m

ajo

r pro

ducts

/serv

ices fro

m w

hic

h th

e a

bove s

egm

ents

deriv

e re

venue a

re:

Bu

sin

ess S

eg

men

tsS

ervic

es

Resid

entia

l Aged C

are

Serv

ices (R

AC

)

Acute

Health

Oth

ers

-Prim

ary

Health

Physio

thera

py, P

odia

try, D

iete

tics, S

peech P

ath

olo

gy, O

ccupatio

nal T

hera

py &

Denta

l

-Dis

trict N

urs

ing

-Radio

logy S

erv

ices

-Cate

ring S

erv

ices

-Day C

entre

-Consultin

g R

oom

s

-Fundra

isin

g

Geo

grap

hic

al S

eg

men

t

Hig

h a

nd L

ow

Level A

ged C

are

Acute

Medic

al &

Surg

ical S

erv

ices

East G

ram

pia

ns H

ealth

Serv

ice o

pera

tes p

redom

inantly

in th

e G

ram

pia

ns re

gio

n in

Vic

toria

. 100%

of re

venue, n

et s

urp

lus fro

m o

rdin

ary

activ

ities a

nd s

egm

ent a

ssets

rela

te to

opera

tions in

the G

ram

pia

ns re

gio

n, V

icto

ria.

Oth

er

Co

nso

lidate

dR

AC

Acu

te

FR

40

Notes To and Forming Part of the Financial Statements

East Grampians Health Service

Annual Report 2012/2013

Note 19: Jointly Controlled Operations and Assets

Name of Entity Principal Activity 2013 2012

% %

Grampians Region Health IT Alliance ICT Systems 6.70 6.95

2013 2012

$'000 $'000

Current Assets

Cash and Cash Equivalents 91 45

Receivables 67 89

Other Current Assets 3 1

Total Current Assets 161 135

Non Current Assets

Property, Plant and Equipment 65 48

Total Non Current Assets 65 48

Total Assets 226 183

Current Liabilities

Payables 105 53

Total Current Liabilities 105 53

Total Liabilities 105 53

2013 2012

$'000 $'000

Revenues

Other 304 287

Total Revenue 304 287

Expenses

Information Technology and Administrative Expenses 313 312

Total Expenses 313 312

Net result (9) (25)

Contingent Liabilities and Capital Commitments

Ownership Interest

East Grampians Health Service's interest in assets and liabilities employed in the above jointly

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

statements under their respective asset and liability categories:

As at 30 June 2013 the Grampians Region Health IT Alliance has not reported any contingent liabilities.

East Grampians Health Service's interest in revenues and expenses resulting from jointly controlled

operations and assets is detailed below:

FR 41

Note

s T

o a

nd F

orm

ing P

art o

f the F

inancia

l Sta

tem

ents

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

Go

vern

ing

Bo

ard

s

Ms S

Philip

Mr G

Foste

r

Ms L

Sta

ley

Mr G

Laid

law

Mrs

H F

lem

ing

Mr W

Dic

keson

Mr M

Wood

Acco

un

tab

le O

fficers

Mr N

Bush

Rem

un

eratio

n o

f Resp

on

sib

le P

erso

ns

The n

um

ber o

f Responsib

le P

ers

ons a

re s

how

n in

their re

levant in

com

e b

ands;

20

13

20

12

20

13

20

12

In

co

me B

an

dN

o.

No

.N

o.

No

.

$0 - $

9,9

99

7

8

7

8

$180,0

00 - $

189,9

99

1

-

1

-

$190,0

00 - $

199,9

99

-

1

-

1

To

tal N

um

ber o

f Resp

on

sib

le P

erso

ns

8

9

8

9

$1

89

,87

5

$1

99

,75

9

$1

89

,87

5

$1

99

,75

9

1/0

7/2

012 - 3

0/0

6/2

013

The H

onoura

ble

David

Davis

, MLC, M

inis

ter fo

r Health

and A

gein

g

1/0

7/2

012 - 3

0/0

6/2

013

1/0

7/2

012 - 3

0/0

6/2

013

1/0

7/2

012 - 3

0/0

6/2

013

1/0

7/2

012 - 3

0/0

6/2

013

1/0

7/2

012 - 3

0/0

6/2

013

1/0

7/2

012 - 3

0/0

6/2

013

Note

20

a: R

esp

on

sib

le P

erso

ns D

isclo

su

res

Resp

on

sib

le M

inis

ter:

In a

ccord

ance w

ith th

e M

inis

teria

l Dire

ctio

ns is

sued b

y th

e M

inis

ter fo

r Fin

ance u

nder th

e F

inancia

l Managem

ent A

ct 1

994

, the fo

llow

ing d

isclo

sure

s

are

made re

gard

ing re

sponsib

le p

ers

ons fo

r the re

portin

g p

erio

d.

Perio

d

1/0

7/2

012 - 3

0/0

6/2

013

1/0

7/2

012 - 3

0/0

6/2

013

To

tal r

em

un

eratio

n r

eceiv

ed

or d

ue a

nd

receiv

ab

le b

y R

esp

on

sib

le P

erso

ns fr

om

the

rep

ortin

g e

ntity

am

ou

nte

d to

:

Paren

t

Am

ounts

rela

ting to

Responsib

le M

inis

ters

are

reporte

d in

the fin

ancia

l sta

tem

ents

of th

e D

epartm

ent o

f Pre

mie

r and C

abin

et

Co

nso

lidate

d

FR

42

No

tes T

o a

nd

Fo

rmin

g P

art o

f the

Fin

an

cia

l Sta

tem

en

ts

East G

ram

pia

ns H

ealth

Serv

ice

Annual R

eport 2

012/2

013

No

te 2

0b

: Execu

tive O

fficer D

isclo

su

res

Execu

tive O

fficers' R

em

un

eratio

n

20

13

20

12

20

13

20

12

20

13

20

12

20

13

20

12

In

co

me B

an

dN

o.

No

.N

o.

No

.N

o.

No

.N

o.

No

.

$100,0

00 - $

109,9

99

-

1

-

1

-

1

-

1

$110,0

00 - $

119,9

99

1

1

1

1

1

1

1

1

$120,0

00 - $

129,9

99

-

-

1

-

-

-

1

-

$130,0

00 - $

139,9

99

1

1

2

1

1

1

2

1

$140,0

00 - $

149,9

99

2

-

-

1

2

-

-

1

$150,0

00 - $

159,9

99

-

2

-

1

-

2

-

1

To

tal N

um

ber o

f Execu

tives

4

5

4

5

4

5

4

5

To

tal A

nn

ualis

ed

Em

plo

yee E

qu

ivale

nt (

AEE) (i)

4.0

05.0

04.0

05.0

04.0

05.0

04.0

05.0

0

To

tal R

em

un

eratio

n5

52

,97

0$

6

63

,62

7$

5

26

,60

2$

6

51

,83

0$

5

52

,97

0$

6

63

,62

7$

5

26

,60

2$

6

51

,83

0$

No

te 2

1: E

ven

ts O

ccu

rrin

g a

fter th

e B

ala

nce S

heet D

ate

No

te 2

2: C

on

tro

lled

En

tities

Nam

e o

f en

tityC

ou

ntr

y o

f

inco

rp

oratio

n

Eq

uity

Ho

ldin

g

East G

ram

pia

ns H

ealth

Build

ing fo

r the F

utu

re

Foundatio

n

Austra

lia100%

No

te 2

3: E

co

no

mic

Dep

en

den

cy

East G

ram

pia

ns H

ealth

Serv

ice is

econom

ically

dependent u

pon th

e V

icto

rian D

epartm

ent o

f Health

for its

revenue fro

m G

overn

ment G

rants

.

Base R

em

un

eratio

n

PA

REN

TC

ON

SO

LID

ATED

To

tal R

em

un

eratio

n

No s

ignific

ant e

vents

occurre

d a

fter th

e re

portin

g d

ate

.

(i) Annualis

ed E

mplo

yee E

quiv

ale

nt (A

AE) is

based o

n w

ork

ing 3

8 o

rdin

ary

hours

per w

eek o

ver th

e re

portin

g p

erio

d.

The n

um

bers

of e

xecutiv

e o

fficers

, oth

er th

an M

inis

ters

and A

ccounta

ble

Offic

ers

, and th

eir to

tal re

munera

tion d

urin

g th

e re

portin

g p

erio

d a

re s

how

n in

the firs

t two

colu

mns in

the ta

ble

belo

w in

their re

levant in

com

e b

ands.

The b

ase re

munera

tion o

f executiv

e o

fficers

is s

how

n in

the th

ird a

nd fo

urth

colu

mns. B

ase re

munera

tion is

exclu

siv

e o

f bonus p

aym

ents

, long-s

erv

ice le

ave p

aym

ents

,

redundancy p

aym

ents

and re

tirem

ent b

enefits

.

Base R

em

un

eratio

nTo

tal R

em

un

eratio

n

FR

43