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Numurkah District Health Serivce 2017-2018

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Page No.

Charter and Purpose 5

REPORT OF OPERATIONS

Responsible Bodies Declaration 7

Annual Reporting 9

Responsible Ministers 9

History 10

Year in Review - Board Chairman and Chief Executive Report 11-13

Board Members and Committees 14-15

External Community Representatives 16

Executive Team 17

Director of Medical Services Report

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Services 19-20

Organisational Structure 21

Statutory Reporting

Statement of Priorities

Part A – Strategic Overview 22-27

Part B – Performance Priorities 28-29

Part C – Activity and Funding 30

Workforce Information 31

Financial Results 32

Consultancies 33

Disclosures and Attestations 34-36

Occupational Health and Safety 37-38

Occupational Violence 39

Environmental Performance 40

Disclosure Index 41-42

FINANCIAL STATEMENTS


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To be recognised as a leader in rural health and community services.

To deliver through innovation, collaborative partnerships and resources effectiveness, services that provide for the health and well-being of the individual and the community.

Respect:

We value that all individuals have the right to be supported in a way that maintains privacy, dignity and safety. We, as individual employees, commit to showing respect to all people and their roles within this organisation, our community or for any other person who comes in contact with Numurkah District Health Service.

Trust:

We will be honest, open and dependable.

Compassion:

We will show empathy at all times on an emotional, physical, spiritual and cultural level.

Responsibility:

We will be accountable for our own actions and behaviours. We will fulfil our role as employees of Numurkah District Health Service and in accordance with the Victorian Public Sector Commission Code of Conduct for public sector employees. We have a responsibility to provide a learning environment and we are responsible for our own development and learning.

To achieve a healthy organisation, NDHS expects the following behaviour:

We are honest and open at all times

We are accountable for our own actions (behaviours)

We work collaboratively with a team approach

We acknowledge everyone has the right to be treated with respect and fairness

We respond to our roles and responsibilities with commitment, efficiency and in an appropriate time frame

We consider environmental factors in our work practice

We provide excellent customer service through responsiveness and effective communication.


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REPORT OF

OPERATIONS 2017 - 2018

In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Numurkah District Health Service for

the year ending 30 June 2018.

MICHAEL BUHA Board Chairman Numurkah 27/08/2018


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Numurkah District Health Service reports on its annual performance in two separate documents each year – the Annual Report and Quality Account. This Annual Financial and Performance Report fulfils the statutory reporting requirements to Government by way of an Annual Report and the Quality of Account reports on quality, safety, risk management and performance improvement matters. The purpose, functions, powers and duties of Numurkah District Health Service are described in the 2016-2019 Strategic Plan and in the By-Laws of the organisation. Both documents are presented to the Annual General Meeting in November and then distributed to the community. The report is also available on the NDHS website at www.ndhs.org.au

The responsible Ministers during the reporting period were: The Hon. Jill Hennessy MP Minister for Health & Minister for Ambulance Services

The Hon. Martin Foley MP Minister for Housing, Disability and Ageing, & Minister for Mental Health


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1957 Opening of Numurkah District War Memorial Hospital by Colonel Sir Ernest Edward “Weary” Dunlop AC, CMG, OBE

1976 Opening of Numurkah Pioneer Memorial Lodge

1982 Opening of Baala House – replaced by Karinya Nursing Home 2006

1996 Opening of Community Health Centre – replaced by Primary Health 2015

1997 Name change to Numurkah District Health Service

2005 Extension to Community Health Centre completed – replaced by Primary Health 2015

2006 Opening of Karinya Nursing Home and Support Services building

2007 Numurkah Pioneer Memorial Lodge amalgamated with Numurkah District Health Service under the Health Services Act 1988

2012 Closure of hospital, radiology department, urgent care and administration building due to significant water damage during the March 2012 flood.

2012 Opening of Interim Urgent Care Centre – replaced by Acute Ward 2015

2015 Opening of Primary Health

2015 Opening of Acute Health Services

2015 Rededication of Numurkah District War Memorial Hospital

2015 Opening of Administration Building


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Mr. Michael Buha Board Chairman

Mrs. Jacque Phillips Chief Executive Officer

Board Chairman and Chief Executive Report

On behalf of the Board and staff, it gives us great pleasure to present the 63rd Annual Report of Numurkah District Health Service (NDHS) for the year ended 30 June 2018. The report is prepared in accordance with the Financial Management Act 1994. It details the significant achievement and events that occurred during the year and particularly highlights how the health service has responded to the health needs of our local community. Over the last 12 months we supported an increased focus on clinical governance, successfully maintained accreditation across the health service, broadened our community engagement and expanded our staff wellbeing initiatives and the availability of local services. Delivering Quality Care and Services NDHS took part in Aged Care support visits and continues to demonstrate ongoing compliance with quality standards across Karinya Nursing Home and Numurkah Pioneers Memorial Lodge. We submitted our periodical review for National Standards Accreditation and our Commonwealth Home Support Program was also accredited. Our Support Services team once again demonstrated the level of pride they have in their work, achieving a yearly average for 2017-18 of 95% cleanliness result across the whole organisation.

The breadth of services at NDHS continued to build this year. A Chronic Obstructive Pulmonary Disease program and Mental Health Psychological Therapy Services using the Stepped Care Approach was funded by Murray Primary Health Network under a partnership model with Moira Health Services including Nathalia, Yarrawonga and Cobram. The Urgent Care Project funded by Better Care Victoria sees a focus on urgent care presentations at Cobram, Nathalia, Numurkah and Kyabram health services and investigates ways that we can support Goulburn Valley Health to reduce the number of presentations of low complexity to their Emergency Department. NDHS continues to enjoy the support of Rural Workforce Agency Victoria under the VicOutreach Program where medical and allied health specialists visit Numurkah to provide services in maternity, gynaecology, mental health and geriatric disciplines. We continued our emphasis on improving clinical governance capability and look to investigate ways to work more collaboratively into the future with Cobram and Nathalia and engage with Goulburn Valley Health. We have implemented the electronic credentialing system and maintain a learning management platform to support the training and development of our staff. Leading the Way We have strengthened our health promotion focus this year at a local and regional level. Our


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participation in the Preventing Obesity community model led by Global Obesity Centre at Deakin University has provided the opportunity to discuss overweight and obesity levels with our local community. The launch of More 4 Moira demonstrates our commitment to this initiative in preventative health and starting in the early years. A partnership was formed with Food Bowl Festival enabling us to deliver health messages and introduce innovative ways to engage people in open and honest conversations about their health. A community development approach to support the dairy farmer industry and associated businesses saw strong involvement from women and a men’s health night with nearly 200 participants. Numurkah, Cobram and Nathalia Health Service Boards of Management have been working closely together over the last 12 months to improve access to health care for local communities. Communication and consultation took place with staff and the community to gain feedback on the collaboration proposal with feedback being overwhelmingly positive. Building on the results of due diligence and consultation processes, the collaboration of services and strengthening of partnerships across the three organisations is continuing. A shared Chief Executive role between Cobram District Health and Numurkah District Health Service commenced in February and will be extended to include Nathalia District Hospital on 1 July 2018. The three separate boards of management will continue to govern each health service, including exploring ways to further the partnership and strengthen health care through improved connection and consistent service delivery. Staff opportunities for professional development will be provided, helping to retain and attract staff. Financial Performance The Health Service achieved an operating surplus of $551,000 this financial year. Our revenue has continued to grow over recent years and therefore our labour costs increase. We will continue to identify efficiencies and support the introduction of innovative programs to ensure the ongoing viability of NDHS. We have been successful in a number of submissions

that has increased our revenue and number of staff employed with this work continuing into the next financial year. Infrastructure and Technology Plans are continuing to secure the future for Numurkah Pioneers Memorial Lodge. This ageing facility has been subject to a Business Case that has recommended the need to maintain at least the current number of residential aged care beds in our community. A focus on this project will continue with the Board agreeing to a feasibility study to identify the most appropriate location between the current site and adjacent to Karinya Nursing Home. We received funding to increase CCTV, upgrade the air-conditioning system in Karinya and undertake renovations for significant refurbishment. New equipment has been purchased for theatre, the outdoor community rehabilitation area, residential aged care and acute ward. This is all as a result of capital asset planning and funding that allows state of the art facilities to be maintained. Supporting Our Team Our staff wellbeing program grew this year, with a wide variety of cultural experiences and fun physical challenges on offer. We joined in Active April and provided opportunities for staff to support others through the Staff Assistance Fund. We continued to enrich our team with a variety of educational experiences including leadership development. Appreciation and Continued Support The work of our ladies auxiliaries, volunteers and committees contributes significantly to our overall success and we are very thankful for the support and contribution they make to NDHS. We celebrated the closing of Kaarimba Auxillary after 50 years of raising funds to purchase equipment for patients and residents with over $56,000.00 donated over this time. We value and recognise the work of Kaarimba Auxillary and all the committees over the last 12 months in supporting NDHS to deliver high quality services to our community. Barbara McKeown has retired from the Board after 14 years of service and we would like to thank Barb for her contribution and in particular


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her role and leadership of the Clinical Governance Quality and Safety committee over many years. We welcomed a new Board member, Andrew Lelliott, who has brought a new dynamic to the governing committee with a strong background in a range of skill areas.

On behalf of the Board of Management, we would like to express our sincere appreciation to the community for its significant support throughout the year and for the commitment and dedication shown by our entire staff, volunteers, GPs and visiting medical officers.

Michael Buha Jacque Phillips Chairman Chief Executive Office


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Numurkah District Health Service is governed by a 9 person Board appointed by the Governor-in-Council upon the recommendation of The Honourable Jill Hennessy, Minister for Health, & Minister for Ambulance Services. The functions of the Board as determined by the Health Services Act 1988 are:

to oversee and manage the Organisation; and

to ensure the services provided by the Organisation comply with the requirements of the Act and the aims of the Organisation.

Board Sub-Committees The following Sub-Committees support the Board of Management in their governance role: Clinical Governance Quality and Safety The Clinical Governance Quality and Safety Committee has a governance role to ensure high

standards of patient safety, quality and care, accountability and continuous improvement.

Corporate Governance Finance and Audit The Corporate Governance Finance and Audit Committee oversee finance and audit, compliance, systems of accountability and reporting, and risk management.

Community Liaison Committee The Community Liaison Committee is a sub-committee of the Clinical Governance Quality and Safety Board Committee. The role of the Committee is to ensure effective community participation across NDHS and to assist in monitoring the quality of services provided. The Committee is comprised of community members, one Board member, Executive staff and the Quality assistant. The community members are residents of the Numurkah district who represent a broad range of community views and interests.

BOARD MEMBERS

MR MICHAEL BUHA – CHAIRMAN GAICD - Appointed July 2011 Committee Membership: Clinical Governance Quality & Safety Sub-committee

MRS MELISSA NICOLL – VICE CHAIR B.App Sci (Physiotherapy) - Appointed November 2008 Committee Membership: Clinical Governance Quality & Safety Sub-committee

MR MICHAEL TYMENSEN

BBus (Acc), CPA - Appointed July 2008 Committee Membership: Corporate Governance Finance & Audit Sub-committee


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BOARD MEMBERS

MS BARBARA MCKEOWN Appointed November 2004

Committee Membership: Clinical Governance Quality & Safety Sub-committee

MRS KATE HODGE Appointed July 2016

Committee Membership: Clinical Governance Quality & Safety Sub-committee Community Liaison Committee

MR NATHAN MORRIS Appointed July 2017 Committee Membership: Clinical Governance Quality & Safety Sub-committee

MR JOHN WATSON Appointed July 2015 Committee Membership: Corporate Governance Finance & Audit Sub-committee

MR ANDREW LELLIOTT PICTURE NOT AVAILABLE Appointed July 2017 Committee Membership: Corporate Governance Finance & Audit Sub-committee

MS HELEN NICHOLAS BHSc, LLB - Appointed July 2016 Committee Membership: Corporate Governance Finance & Audit Sub-committee


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COMMUNITY REPRESENTATION (External)

MR JEFFREY BUZZA (Chairperson) Committee Membership: Corporate Governance, Finance & Audit Sub-committee

MRS MICHELLE MCCRACKEN Committee Membership: Corporate Governance, Finance & Audit Sub-committee

MRS KATE HODGE Committee Membership: Community Liaison Committee

MRS SUE OXLEY Committee Membership: Community Liaison Committee

MS HELENA CORNELIA Committee Membership: Community Liaison Committee

MR STEPHEN MILLS Committee Membership: Community Liaison Committee

MR JOHN SHRIMPTON Committee Membership: Community Liaison Committee

MRS LYN WILLIAMS Committee Membership: Community Liaison Committee

Community Liaison Committee Members


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CHIEF EXECUTIVE OFFICER Mrs Jacque Phillips OAM R.N., R.M., Grad Cert CH, EMPA, MAICD The Chief Executive Officer (CEO) is responsible to the Board of Management for the effective operation of the Health Service, ensuring the integration of services and provision of a consistent and coherent continuum of care to the community. Key responsibilities include the development and implementation of operational and strategic planning, maximising service efficiency, quality improvement and minimisation of risk.

DIRECTOR OF CLINICAL SERVICES Mrs Wendy Ross R.N., Grad Cert eHealth, Dip Bus/HR, GAICD The Director of Clinical Services (DCS) is responsible for Acute, Primary Health, Theatre and clinical areas such as Infection Control and Education. The role encompasses clinical governance, clinical leadership and standards of practice, service and strategic planning, clinical risk management, quality improvement and resource management.

MANAGER OF WORKFORCE & ADMINISTRATION Mrs Nicole Cason Dip HR, Grad Cert BusAdmin The Manager of Workforce & Administration role is responsible for all human resources (HR) management and reporting requirements including employment and industrial relations, recruitment and selection, planning and performance, assists with strategic management, operational budgeting, training and provides managers with generalist HR advice and support. This role oversees the Occupational Health and Safety, Payroll, Volunteers and Administration Departments.

QUALITY SYSTEMS MANAGER Ms Sarah Finlayson B. Bus. Accting; Gr. Dip. Mgt. & Rural Health; Master Health Services Mgt. The Quality Systems Manager is responsible for development of the organisation’s quality and risk management systems. Key responsibilities include oversight of clinical audit, clinical review; and accreditation of acute, aged care, radiography and primary health services. This role actively pursues opportunities for service development, innovation, research and evaluation.

DIRECTOR OF AGED CARE & SUPPORT SERVICES / DDON Mr Justin Sullivan R.N., Grad. Dip. Critical Care, Grad. Dip. Business Man. The Director of Aged Care and Support Services Manager is responsible for our two aged care facilities and the non clinical support services including catering, environmental services, maintenance and supply. This role also oversees contracts and compliance with Health Purchasing Victoria requirements.


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In 2017/18, Numurkah District Health Service has seen an expanded GP Registrar program, maintained a focus on quality and safety of care through strong clinical governance activities, and led regional collaboration in optimising the use of our local Urgent Care Centres. Throughout 2017/18, NDHS has maintained a robust and multidisciplinary clinical review process. This allows clinicians, teams and the hospital as a whole to continuously reflect and learn from our experiences - as well as providing moments where we are able to acknowledge the high standards of care that we do deliver. We have identified opportunities for improvement in consistently prescribing antibiotics according to Therapeutic Guidelines: Australia, and in meeting all of the standards required in the use of the National Inpatient Medication Chart. We have provided feedback and recommendations to our Visiting Medical Officers in these areas, and recruited our nursing staff to provide support in consistently meeting these standards.

Numurkah Medical Centre has recommenced its GP Registrar training program through MCCC (Mountain City Country Coast) GP Training, as the community welcomed Drs Saif Aswad and Zaw Min Oo. These GP Registrars have contributed to the NDHS medical workforce by working as Visiting Medical Officers under the supervision of the established GPs of the Numurkah Medical Centre. Not only do they provide the local community with a greater number of doctors, but they also provide a greater role for both Numurkah Medical Centre and NDHS to serve as centres of postgraduate medical training, and an opportunity to showcase our town and hospital to GPs of the future.

NDHS is leading a Better Care Victoria funded project on the use of Urgent Care Centres in Numurkah, Cobram, Nathalia and Kyabram, and their interactions with the Emergency Department of Goulburn Valley Health. This project has seen the development of consumer and community engagement activities, and monthly regional clinical review meetings involving patients seen in participating Urgent Care Centres and Goulburn Valley Health Emergency Department. These clinical review meetings, in turn, have led to the development and adoption of various Urgent Care Centre and short admission clinical pathways, which support clinicians to deliver care according to evidence based practice guidelines as adapted to local circumstances. Medical Services at NDHS looks forward to making further contributions to the health service and the community, in what will no doubt be another busy twelve months ahead!

Dr Ka Chun Tse Director of Medical Services MBBS, MHM, MPH, FACHSM


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Numurkah District Health Service (NDHS) is a small rural health service with a proud reputation as a leading and innovative rural health service. NDHS continues to deliver quality and safe care and services to support the health and wellbeing needs of its community. Located in the Moira Shire, NDHS supports the health care needs of approximately 9,000 people and works in partnership with other health services to improve outcomes for our community. The Health Service was established in 1957 as the Numurkah War Memorial Hospital and has seen significant growth and change in Residential Aged Care and Community Health. The Health Service provides 16 acute beds, 6 day procedure beds, 66 residential aged care beds, 11 independent living units, primary care, community and allied health services.

NDHS Incorporates: Acute:

16 bed ward caring for medical, post-operative, palliative care patients

Operating Suite with recovery and 6 day procedure beds

Urgent Care Centre

Pathology

X-Ray

Ultrasound

Aged Care:

Geriatrician

Lifestyle and Leisure

Palliative Care

Residential Aged Care

Karinya 30 beds

Numurkah Pioneers Memorial Lodge 36 beds

Respite Care


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Primary Health:

Cardiac Rehabilitation (via Moira Community Rehabilitation Centre)

Central Intake Service

Chronic Disease Support

Community Midwife – Antenatal and Domiciliary

Counselling / Social Support

Dental (privately via GV Dental)

Diabetes Education

District Nursing Service

Footcare Service (Nurse clinic)

Geriatrician

Health Promotion

Healthy Habits Group Program

Nutrition and Dietetics

Obstetrics and Gynaecology

Occupational Therapy

Palliative Care (Moira Palliatvie Care Service)

Physiotherapy

Planned Activity Group

Podiatry

Psychology

Psychiatry

Social Support Program (Planned Activities Groups)

Telehealth

Administrative:

Administration Support

Auxiliaries

Education and Training

Facility Management

Finance

Health Information

Support Services

Human Resources

Meals on Wheels

Occupational Health and Safety

Quality and Risk

Reception

Security

Volunteers

Supply


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Mission Statement

To deliver, through innovation, collaborative partnerships and resource effectiveness, services that provide for the health and wellbeing of the individual and the community.

Service Profile

Numurkah District Health Service is a fully integrated small rural health service Funded by State and Commonwealth Governments and supported by the local community. The range of services currently provided includes acute inpatient care and urgent care that is fully equipped with a resuscitation area. Radiology and ultrasounds are also available to inpatients and the community. Operating theatre services provide surgery to the local community and the broader region through a partnership with Goulburn Valley Health. Two residential aged care facilities comprising 66 beds with transitional care are available within the facility. A retirement village at Gwandalan Court has 11 independent living units. A Primary Health Centre provides a range of nursing and allied health services including district nursing, community based palliative care, chronic disease management, social support programs, health promotion, community midwifery, psychology and counselling, podiatry, dietician, diabetes educator. A General Practitioner clinic and dental services are also available. Specialist medical clinics include geriatrician, obstetrician, general surgery and psychiatry. A community rehabilitation centre supports people in cardiac rehabilitation and is available through the Primary Health Centre.

Strategic Planning

Numurkah District Health Service strategic plan [2016–2019] can be read at http://www.ndhs.org.au/home/publications.html

http://www.ndhs.org.au/home/publications.html


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In 2017-18 Numurkah District Health Service will contribute to the achievement of the Government’s commitments by:

Goals Strategies Health Service

Deliverables Progress Report

Better Health A system geared to prevention as much as treatment Everyone understands their own health and risks Illness is detected and managed early Healthy neighbourhoods and communities encourage healthy lifestyles

Better Health Reduce State-wide Risks

Build Healthy Neighbourhoods

Help people to stay healthy

Target health gaps

Partner with Goulburn Valley Health (GVH) for the Strengthening Hospital Responses to Family Violence initiative to implement a whole-of-hospital model. Establish action plan to fully implement strategies across the organisation.

NDHS working in partnership with GVH. Established working group and sharing resources between Numurkah, Cobram and Nathalia. Project progressing with family violence contact officers appointed and trained, policies implemented and staff training commenced.

Numurkah District Health Service (NDHS) with other local community members will implement the Community-based obesity prevention strategies. This is based on the Deakin University “Systems Thinking Pilot” Training Course completed in May 2017.

Branded More4Moira this program has a community advisory group and is being led by the Health Promotion Officer. A community based vision setting workshop was held in March. NDHS research coordinator supported dietetic students to write and submit abstracts on breastfeeding and tap water to the National Rural Health Conference for poster presentations. A third abstract will be submitted on the Moira food outlet menu survey which will also be written as a journal article for publication.


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Participate in population based planning through Goulburn Valley Primary Care Partnership and Murray Primary Health Network, and engagement with Municipal Public Health and Wellbeing Plan in Moira Shire.

NDHS represented on GVPCP relevant working groups. NDHS is lead agency for Chronic Obstructive Pulmonary Disease program and Primary Mental Health program funded by Murray Primary Health Network. These programs have been implemented across Moira Health Services.

Implement Diversity Plan strategies and actions including those identified by the Aboriginal Cultural Competency Audit.

Calendar of events includes NAIDOC week and Drop the Jargon Day. Aboriginal artwork being sourced and purchased for display in the health service. Cultural Respect Encompassing Simulation Training attended by Managers and Staff. Welcome to Country at AGM. Social Media promoted and number of followers of NDHS page increased. Weekly community café in aged care facilities.

Better Access Care is always there when people need it More access to care in the home and community People are connected to the full range of care and support they need

Better Access Plan and invest Unlock innovation Provide easier access Ensure fair access

Continue development of telehealth to improve access to specialist health care.

Health Direct used as platform for telehealth. Psychiatry consultations via telehealth with GVH. Urgent Care telehealth agreement with Northeast Health Wangaratta Rural Urgent Care Centre piloting telehealth with GPs on call to urgent care using Health Direct Portal.


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There is equal access to care

Develop the Better Care Victoria business case in partnership with Cobram, Nathalia, Kyabram and GVH to reduce unnecessary presentations to GVH Emergency Department and improve access to local urgent care centres.

NDHS funded by BCV as lead agency for Urgent Care Project. The BCV project is in its final phase of implementation with all aspects of the project to be delivered according to plan. Presentation to the Better Care Victoria Board and Consumer Advisory Committee in June 2018 on the progress and highlights of all aspects of the project.

Finalise the workforce plan to specifically address current and future workforce shortage and difficult recruitment areas. Plan to include innovative professional development solutions and multi-agency or regional approaches.

Workforce Plan developed.

Progress a strategy to collocate Numurkah Pioneer Memorial Lodge (36beds) with Karinya Nursing Home (30 beds) on one site to address the ageing infrastructure at Numurkah Pioneer Memorial Lodge. A submission to Rural Health Infrastructure Fund to be made in August 2017.

Submission lodged with Rural Health Infrastructure Fund. The submission was unsuccessful. Developing proposal for approval to proceed to feasibility study.


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Better Care Target zero avoidable harm

Healthcare that focuses on outcomes

Patients and carers are active partners in care Care fits together around people’s needs

Better Care Put Quality First Join up care Partner with patients Strengthen the workforce

Embed evidence

Ensure equal care Mandatory actions against the ‘Target zero avoidable harm’ goal:

Establish key indicators based on new Victorian Governance Policy Framework that demonstrate each of the attributes of embedded quality and safety at Unit level and Board level.

Have embedded ongoing monitoring at Board level of Acute patients over 75 supported to complete an Advance Care Directive if they wish to. Audit and monitoring of patient awareness of the health service Alert, Check, Talk Program has been fully implemented and compliance is monitored as an ongoing KPI. The Music for Memory program is being implemented and volunteers actively recruited to support this program. All department heads are producing monthly Traffic Light Reports for their staff on time and this is being monitored as an ongoing KPI. We have implemented a Target 0 strategy for medication incidents and falls – this is ongoing and the goal is measured as KPI. The electronic medication administration system Medsig has been implemented in both residential aged care facilities.

Develop and implement a plan to educate staff about obligations to report patient safety concerns

Embed patient story telling culture to educate staff about importance of patient experience concerns.

Patient story presented at clinical governance meetings. These are drawn from the clinical review process.


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Establish agreements to involve with external specialists in clinical governance processes for each major area of activity (including mortality and morbidity review)

Participate in opportunities to expand involvement in Goulburn Valley regional partnership and clinical governance networks to improve patient quality and safety.

CEO is a member of the West Hume Rural and Regional Partnership Forum. 100% attendance by a representative from NDHS at the regional Maternity mortality and morbidity meetings. Urgent Care Project clinical review established across 5 health services and is by NDHS Director Medical Services. Has been occurring monthly since Feb 2018.

In partnership with consumers, identify 3 priority improvement areas using Victorian Healthcare Experience Survey data and establish an improvement plan for each. These should be reviewed every 6 months to reflect new areas for improvement in patient experience.

Provide Victorian Healthcare Experience Survey data and information through Clinical Governance Committee structure including Consumer Liaison Committee. Monitor and measure three priority improvement areas in patient experience and report every 6 months.

Victorian Healthcare Experience Survey Traffic Light Report to Board Clinical Governance. Priorities for implementation and monitoring compliance are established. ACT system for patient clinical deterioration fully implemented. Ongoing monitoring and evaluation are KPIs. Discharge planning improvements have been implemented and significant improvement in results in March 2018 VHES survey. CARE initiative was implemented fully in 2017-2018 and compliance is monitored via ongoing audits.


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Key performance indicator Target 2017/18 Actual

Accreditation

Accreditation against the National Safety and Quality Health Service Standards

Full compliance Achieved

Compliance with the Commonwealth’s Aged Care Accreditation Standards

Full compliance Achieved

Infection prevention and control

Compliance with the Hand Hygiene Australia program 80% 93%

Percentage of healthcare workers immunised for influenza 75% 96%

Patient experience

Victorian Healthcare Experience Survey – data submision Full compliance Achieved

Victorian Healthcare Experience Survey – positive patient experience – Quarter 1

95% positive experience

97.7%



Full Compliance*



95.2%

Victorian Healthcare Experience Survey – discharge care. Quarter 1

75% very positive experience

91.9%



Full Compliance*



92.1%

Victorian Healthcare Experience Survey – patients perception of cleanliness – Quarter 1

70% 96.3%


70% Full Compliance*


70% 93.4%

*Less than 42 responses were received for the period due to the relative size of the Health Service

Adverse events

Number of sentinel events Nil Nil

Mortality – number of deaths in low mortality DRGs

(This indicator was withdrawn during 2017-18 and is currently under review by the Victorian Agency for Health Information)

N/A N/A


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Organisational culture

People matter survey - percentage of staff with an overall positive response to safety and culture questions

80% 96%

People matter survey – percentage of staff with a positive response to the question, “I am encouraged by my colleagues to report any patient safety concerns I may have”

80% 98%

People matter survey – percentage of staff with a positive response to the question, “Patient care errors are handled appropriately in my work area”

80% 97%

People matter survey – percentage of staff with a positive response to the question, “My suggestions about patient safety would be acted upon if I expressed them to my manager”

80% 98%

People matter survey – percentage of staff with a positive response to the question, “The culture in my work area makes it easy to learn from the errors of others”

80% 93%

People matter survey – percentage of staff with a positive response to the question, “Management is driving us to be a safety-centred organisation”

80% 98%

People matter survey – percentage of staff with a positive response to the question, “This health service does a good job of training new and existing staff”

80% 95%

People matter survey – percentage of staff with a positive response to the question, “Trainees in my discipline are adequately supervised”

80% 93%

People matter survey – percentage of staff with a positive response to the question, “I would recommend a friend or relative to be treated as a patient here”

80% 99%


Finance

Operating result ($m) 0.12 0.551

Average number of days to paying trade creditors 60 days 52 days

Average number of days to receiving patient fee debtors 60 days 20 days

Adjusted current asset ratio 0.7 or 3% improvement from health service base target

2.09%

Number of days of available cash 14 days 354.4


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Funding Type 2017-18 Activity Achievement

WIES DVA 14.82

WIES TAC

1.14

-------------- Total 15.96

Funding type Activity Actual ($'000)

Small Rural

Small Rural Acute 15.96 6,308

Small Rural Primary Health 1,886 230

Small Rural Residential Care 22,819 1,000

Small Rural HACC 2,529 90

Health Workforce 18 2,143

Other specified funding 263

Total Funding 10,034


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*FTE Excludes Overtime

The FTE figures required in the table above are those excluding overtime. These do not include contacted staff (e.g. Agency nurses, Fee-for-Service Visiting Medical Officers) who are not regarded as employees for this purpose. The above data should be consistent with the information provided in the Minimum Employee Data Set. Statement of Employment and Conduct Principles Numurkah District Health Service ensures a fair and transparent process for recruitment, selection, transfer and promotion of staff. It based its employment selection on merit, and complies with the relevant legislation. Policies and Procedures are in place to ensure staff are treated fairly, respected and provided with avenues for grievance and complaint processes. Numurkah District Health Service is committed to the application of the employment and conduct principles and all employees have been correctly classified in workforce data collections.

Labour Category JUNE

Current Month FTE* JUNE

YTD FTE*

2017 2018 2017 2018

Nursing 65.99 66.78 66.40 65.41

Administration & Clerical 19.43 22.46 20.44 21.12

Medical Support 2.53 4.26 3.17 2.40

Hotel & Allied Services 35.42 36.57 34.73 35.56

Ancillary Staff (Allied Health) 5.58 8.69 5.86 7.48

Doctors (M2M Interns) 15.10 15 12.38 15.43

TOTAL 144.05 153.76 142.98 147.40


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The financial statements comply with the relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance and relevant Standing Directions (SDs), authorised by the Minister of Finance. Five Year Financial Summary

Numurkah District Health Service 2018 $’000

2017 $’000

2016 $’000

2015 $’000

2014 $’000

Total Revenue 21,583 19,901 17,970 33,245 18,812

Total Expenses (21,596) (20,540) (18,797) (16,087) (15,629)

Other Operating Flows included in net result

71 65 3 10 -

Operating Result 551 163 536 541 365

Total Assets 62,379 58,319 57,905 59,269 59,223

Total Liabilities 15,475 11,473 11,009 11,627 11,581

Net Assets 46,904 46,846 46,896 47,642 47,642

Total Equity 46,904 46,846 46,896 47,642 47,642

Summary of Significant Changes:

Nil to report. Operational Budgetary Objective and Performance: The operational objectives for the financial year were met. Numurkah District Health Service's Statement of Priorities outlines a range of accountability measures which were met throughout 2017-2018. The budgetary objective of a operating surplus for the financial year was met. There are no other significant factors which affected the Health Services performance. Events subsequent to balance date: Nil to report.


33

Consultancies over $10,000: In 2017-18 Numurkah District Health Service commissioned 6 consultants over $10,000 during the year at a total cost of $272,098.25 (excl. GST). The following table details this consultancy.

Consultant Purpose of Consultancy Start Date End Date Expenditure

2017-18 (excl. GST)

Future expenditure (excl. GST)

Aspex Consulting Better Care Victoria 23.01.2018 30.06.2018 $25,026.94 $20,000.00

Beige Pureau PR

Communication Engagement and Strategy

Urgent Care Centre Better -Care Victoria

01.10.2017 30.06.2018 $67,594.13

Voluntary Partnership Communication Strategy

$37,000.00

Cube Group Voluntary Partnership Proposal

01.02.2018 30.06.2018 $70,000.00 $120,000.00

Playbook Media Urgent Care Centre - Better Care Victoria

14.12.2017 31.05.2018 $33,300.00 $35,000.00

University of Melbourne

Urgent Care Centre - Better Care Victoria

01.01.2018 30.06.2018 $29,849.00

VERSO Consultancy

Residential Aged Care Business Plan

12.07.2017 15.09.2017 $46,328.00

Consultancies less than $10,000 In 2017-18 Numurkah District Health Service commissioned 6 consultants under $10,000 during the year at a total cost of $23,152.00 (excl. GST).

Consultant Purpose of Consultancy Start Date End Date Expenditure

2017-18 (excl. GST)

Future expenditure (excl. GST)

Accounting and Audit Solutions Bendigo

Voluntary Partnership Proposal Due Diligence

01.01.2018 23.02.2018 $9,890.00

BRT Consulting Residential Aged Care 14.09.2017 30.06.2018 $600.00

HR On Track Human Resources 01.03.2018 31.03.2018 $8,355.00 $10,000.00

McGeogh Trustee

Professional Development 01.01.2018 30.06.2018 $702.00

Rehabilitation Company

Human Resources 03.05.2018 31.05.2018 $1,105.00

RSM Bird Cameron

National Disability Insurance Scheme (NDIS) Planning Review

01.09.2017 14.09.2017 $2,500.00


34

Information and Communication Technology (ICT) Disclosure

The total ICT expenditure incurred during 2017-18 is $550,784.14 (excl. GST) with the details shown below. ($ million)

Business As Usual (BAU) ICT expenditure (Total) (excl. GST)

Non-Business As Usual (non-BAU) ICT expenditure

(Total=Operational expenditure and Capital Expenditure)

(excl. GST)

Operational expenditure (excl. GST)

Capital expenditure (excl. GST)

$518,420.79 $32,363.35 $518,420.79 $32,363.35

Advertising Disclosure In 2017-18, advertising expenditure did not exceed $100,000 per campaign.

Building Act 1993 Numurkah District Health Service complies with provisions of the Building Act 1993 which encompasses the Building Code of Australia and Standards for Publicly owned Buildings November 1994.

National Competition Policy NDHS complies with National Competition Policy, including compliance with the requirements of the policy statement ‘Competitive Neutrality Policy Victoria’.

Freedom of Information Act 1982 The legislative requirement around the Freedom of Information Act 1982 ensures Numurkah District Health Service’s ability to maintain the rights of the clients. Mrs Wendy Ross is Numurkah District Health Service’s Freedom of Information officer.

Victorian Industry Participation Policy Act 2003 NDHS complied with the regulations within the Victorian Industry Participation Policy Act 2003 for the year 2017-18.

Privacy Numurkah District Health Service is committed to protecting the privacy of patient and staff information. We are required by the law to protect personal information and comply with the Health Records Act 2001 (HRA) and other relevant legislation relating to confidentiality and privacy.

Mrs Wendy Ross is Numurkah District Health Service’s Privacy Officer.

Protected Disclosure Act 2012 The Protected Disclosure Act 2012 (The Act) recognises that improper or corrupt conduct by employees, officers or other staff within the public service (including public hospitals) or actions that involve reprisals against any person making a protected disclosure will not be tolerated. The Act provides for the disclosure of improper conduct by public bodies and public officials and the protection for those who come forward with a disclosure.

NDHS has established written procedures to facilitate the making of disclosures under the Act, investigate the disclosed matters, and protect the maker of the protected disclosure from reprisals. During the 2017-18 financial year NDHS had no disclosures under the Act.

FOI DATA 2017-18 2016-17

Requests Received 32 26

Investigated 0 0

Resolved 0 0

Not Processed (no record)

7 2

Request Withdrawn 0 0

http://www.austlii.edu.au/au/legis/vic/num_act/pda201285o2012279/


35

Carers Recognition Act 2012 The Carers Recognition Act 2012 (the Act) formally recognises and values the role of carers and the importance of care relationships in the Victorian community. The Act provides that care relationships should be recognised, respected and supported by having community, health and other care organisations that support the carer, the person needing care and the care relationship. These include mental health, disability services and aged care services. The Act binds NDHS to consider and reflect the principles of The Act when providing support for people in care relationships, and respecting and recognising the vital role that carers play in our community. The principles of The Act are reflected in NDHS values, expected behaviours and procedures. Safe Patient Care Act 2015 Numurkah District Health Service was not required to make any disclosures in relation to nurse to patient ratios during the reporting period under the Safe Patient Care Act 2015. Additional Information Consistent with FRD 22H (Section 6.19) the Report of Operations confirms that details in respect of the items listed below have been retained by Numurkah District Health Service and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

(a) Declarations of pecuniary interests have been duly completed by all relevant officers

(b) Details of shares held by senior officers as nominee or held beneficially;

(c) Details of publications produced by the entity about itself, and how these can be obtained

(d) Details of changes in prices, fees, charges, rates and levies charged by the Health Service;

(e) Details of any major external reviews carried out on the Health Service;

(f) Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations;

(g) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services;

(h) Details of assessments and measures undertaken to improve the occupational health and safety of employees;

(i) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit;

(j) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations;

(k) A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which those purposes have been achieved;

(l) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.


36

Attestation for Compliance with the Ministerial Standing Direction 5.1.4 – Financial Management Compliance Attestation

I, Michael James Buha, on behalf of the Reposnible Body, certify that Numurkah District Health Service has complied with the applicable Standing Directions of the Minister for Finance under the Financial Management Act 1994 and the Instructions. Numurkah District Health Service Audit Committee has verified this.


Attestation on Compliance with Health Purchasing Victoria (HPV) Health Purchasing Policies

I, Michael James Buha, certify that Numurkah District Health Service has put in place appropriate internal controls and processes to ensure that it has complied with all requirements set out in the HPV Health Purchasing Policies including mandatory HPV collective agreements as required by the Health Services Act 1988 (Vic) and has critically reviewed these controls and processes during the year.


Attestation on Conflict of Interest

I, Michael James Buha, certify that Numurkah District Health Service has put in place appropriate internal controls and processes to ensure that it has complied with the requirements of hospital circular 07/2017 Compliance reporting in health portfolio entitles (Revised) and has implemented a ‘Conflict of Interest’ policy consistent with the minimum accountablilities required by the VPSC. Declaration of private interest forms have been completed by all executive staff within Numurkah District Health Service and members of the board, and all declared conflicts have been addressed and are being managed. Conflict of interest is a standard agenda item for declaration and documenting at each executive board meeting.


Attestation on Data Integriy

I, Michael James Buha, certify that Numurkah District Health Service has put in place appropriate internal controls and processes to ensure that reported data accurately reflects actual performance. Numurkah District Health Service has critically reviewed these controls and processes durng the year.



37

The Occupational Health and Safety Act 2004 and Amendments guides the Health Service in its occupational health and safety responsibilities. The Health Service has an active Occupational Health and Safety Committee that comprises both trained Health and Safety Representatives and Management Staff who are committed to working together across the whole of NDHS to ensure we provide and maintain a safe and health workplace for our patients/residents, visitors, staff, volunteers, contractors and students. The Committee meets monthly and minutes are distributed to relevant committees including the Board of Management. In 2017/2018 the OHS Committee identified that improvements were needed with Manual Handling Training provided to staff. Whilst this has been conducted at the face to face Orientation day and as part of the E3 Online Learning platform, it was determined that more robust hands on training was required. NDHS has sourced appropriate training that will be undertaken by key staff in a Train the Trainer Module. In the new financial year, NDHS will train current and new staff face to face on an ongoing basis. NDHS had an increase in OHS incidents from 60 in 2016/2017 to 108 in 2017/2018. This was largely to do with Occupational Violence and

Aggression (OVA) which was a major focus for the Health Service. In 2017/2018 NDHS aligned the OVA plan with the Australian Nursing and Midwifery Federation 10 Point Action Plan. The OVA plan identifies and manages ways for NDHS to ensure safety for staff, volunteers, contractors and students and visitors. This includes via the use of security guards, security cameras, emergency codes in place, duress buttons for staff , secure access areas and training. It was identified that there was a lack of reporting of OVA incidents at the Health Service and a project team formed to look at this reporting in particular. Staff forums were then conducted by the CEO to provide information about what OVA was and the importance of reporting such incidents. This saw an increase in reporting from 15 reported OVA Incidents in the 2016/2017 year to 80 reported OVA Incidents in the 2017/2018 year. Whilst the spike was evident and expected, this highlighted that there had been under reporting and enabled the Health Service to work closely with the managememt and staff to ensure all preventative measures were in place and action plans created in advance where there was a known risk. The Health Service is focusing on revamping the OVA training in the 2018/2019 year.

02468

10

Staff Injuries by Type - 2017/2018

No of Injuries


38

0

50

100

150

OHS Incidents by Severity Rating 2017/2018

No of Incidents


39

Occupational Violence Statistics

2017-18

WorkCover accepted claims with an occupational violence cause per 100 FTE

0

Number of accepted WorkCover claims with lost time injury with an occupational violence cause per 1,000,000 hours worked.

1

Number of occupational violence incidents reported

80

Number of occupational violence incidents reported per 100 FTE

34.04

Percentage of occupational violence incidents resulting in a staff injury, illness or condition

1.25%

Definitions For the purposes of the above statistics the following definitions apply:

Occupational violence Any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment.

Incident An event or circumstance that could have resulted in, or did result in, harm to an employee. Incidents of all severity rating must be included. Code Grey reporting is not included, however, if an incident occurs during the course of a planned or unplanned Code Grey, the incident must be included.

Accepted WorkCover claims Accepted WorkCover claims that were lodged in 2017-18.

Lost time Is defined as greater than one day.

Injury, illness or condition This includes all reported harm as a result of the incident, regardless of whether the employee required time off work or submitted a claim.


40

Numurkah District Health Service is committed to protecting the environment. In 2017-18 NDHS developed an Environmental Management Action Plan.

ELECTRICITY

2017-18

2016-17

2015-16

2014-15

Peak (MWh) 536 591 631 506

Off Peak (MWh) 629 500 519 438

GAS

2017-18

2016-17

2015-16

2014-15

LPG usage (ltrs) N/A NPML moved to natural gas

N/A NPML moved to natural gas



Natural Gas (GJ) 3,344 3,440 3,281 2,118

Carbon emissions (tonnes of CO2e)

2017-18

2016-17

2015-16

2014-15

From electricity usage 1,260 1,190 1,415 1,158

From gas usage 170 177 208 134

WATER

2017-18

2016-17

2015-16

2014-15

Water usage (kL) 15,487 13,799 11,527 12,591

WASTE

2017-18

2016-17

2015-16

2014-15

Clinical waste (kg) 2,178 1,589 1,275 626

General waste (kg) 37,180 38,760 62,059 29,923

Recycled waste (kg) 6,000 5,130 14,864 7,328

Note: The new hospital was re-commissioned in 2015-16.


41

The Annual Report of the Numurkah District Health Service is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Requirement Page Reference Report of Operations (RO) Financial Report (F)

Ministerial Directions Report of Operations Charter and Purpose

FRD 22H Manner of establishment and the relevant Ministers 9 RO

FRD 22H Purpose, functions, powers and duties 5 RO

FRD 22H Initiatives and key achievements 11-13 RO

FRD 22H Nature and range of services provided 19-20 RO

Management and Structure

FRD 22H Organisational structure 21 RO

Financial and Other Information

FRD 10A Disclosure Index 41-42 RO

FRD 11A Disclosure of ex-gratia expenses N/A

FRD 21C Responsible person and executive officer disclosures 43 F

FRD 22H Application and operation of Protection Disclosure Act 2012 34 RO

FRD 22H Application and operation of Carers Recognition Act 2012 35 RO

FRD 22H Application and operation of Freedom of Information Act 1982 34 RO

FRD 22H Compliance with building and maintenance provisions of Building Act 1993 34 RO

FRD 22H Details of consultancies over $10,000 33 RO

FRD 22H Details of consultancies under $10,000 33 RO

FRD 22H Employment and conduct principles 31 RO

FRD 22H Information and Communication Technology Expenditure 34 RO

FRD 22H Major changes or factors affecting performance 32 RO

FRD 22H Occupational Violence 39 RO

FRD 22H Operational and budgetary objectives and performance against objectives 32 RO

FRD 22H Summary of the entitiy’s environmental performance 40 RO

FRD 22H Significant changes in financial position during the year 32 RO

FRD 22H Statement on National Competition Policy 34 RO

FRD 22H Subsequent events 32 RO

FRD 22H Summary of the financial results for the year 32 RO

FRD 22H Additional information available on request 35 RO

FRD 22H Workforce Data Disclosures including a statement on the application of

employment and conduct principles 31 RO

FRD 25C Victorian Industry Participation Policy disclosures 34 RO

FRD 103F Non-Financial Physical Assets 22 F

FRD 110A Cash Flow Statements 4 F

FRD 112D Defined Benefit Superannuation Obligations 18 F

SD 5.2.3 Declaration in report of operations 7 RO

SD 5.1.4 Financial Management Compliance Attestations 36 RO


42

Other requirements under Standing Directions 5.2

SD 5.2.2 Declaration in financial statement 1 F

SD 5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements

6 F

SD 5.2.1(a) Compliance with Ministerial Directions 6 F

Legislation

Freedom of Information Act 1982 34 RO

Protected Disclosure Act 2012 34 RO

Carers Recognition Act 2012 35 RO

Victorian Industry Participating Policy Act 2003 34 RO

Building Act 1993 34 RO

Financial Management Act 1994 36 RO

Safe Patient Care Act 2015 35 RO

Occupational Health and Safety Act 2004 37 RO

Contents Page No.

Independent Auditors Report i

Declaration 1

Comprehensive Operating Statement 2

Balance Sheet 3

Cash Flow Statement 4

Statement of Changes in Equity 5

Notes to Financial Statements 6 - 50

NUMURKAH DISTRICT HEALTH SERVICE

COMPREHENSIVE OPERATING STATEMENT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018

Note 2018 2017

$'000 $'000

Revenue from operating activities 2.1 20,215 18,293

Revenue from non-operating activities 2.1 - 496

Employee expenses 3.1 (13,693) (13,079)

Non salary labour costs 3.1 (1,541) (1,481)

Supplies and consumables 3.1 (1,440) (1,418)

Other expenses 3.1 (2,990) (2,648)

Net result before capital and specific items 551 163

Capital purpose income 2.1 1,368 1,112

Depreciation and Amortisation 4.3 (1,848) (1,883)

Expenditure for capital purposes 3.1 (82) (31)

Finance Costs 3.2 (2) -

Net result after capital and specific items (13) (639)

Other economic flows included in net result

Net gain/(loss) on non-financial assets 7.2 13 1

Revaluation of Long Service Leave 3.3 58 64

Total other economic flows included in net result 71 65

NET RESULT FOR THE YEAR 58 (574)

Other comprehensive income

Items that will not be reclassified to net result

Changes in physical asset revaluation surplus 8.1 - 139

Total other comprehensive income - 139

COMPREHENSIVE RESULT 58 (435)

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

2


BALANCE SHEET

AS AT 30 JUNE 2018

Note 2018 2017

$'000 $'000

Current assets

Cash and cash equivalents 6.2 3,463 7,708

Receivables 5.1 1,095 771

Investments and other financial assets 4.1 24,728 15,383

Inventories 5.2 37 39

Prepayments and other assets 5.4 168 138

Total current assets 29,491 24,039

Non-current assets

Receivables 5.1 74 43

Property, plant & equipment 4.2 32,794 34,172

Intangible Assets 4.4 20 65

Total non-current assets 32,888 34,280

TOTAL ASSETS 62,379 58,319

Current liabilities

Payables 5.5 2,720 1,640

Borrowings 6.1 18 27

Provisions 3.3 2,720 2,481

Other current liabilities 5.3 9,686 7,009

Total current liabilities 15,144 11,157

Non-current liabilities

Borrowings 6.1 18 30

Provisions 3.3 313 286

Total non-current liabilities 331 316

TOTAL LIABILITIES 15,475 11,473

NET ASSETS 46,904 46,846

EQUITY

Property, plant & equipment revaluation surplus 8.1a 9,934 9,934

Restricted specific purpose reserve 8.1b 340 340

Contributed capital 8.1b 5,831 5,831

Accumulated surpluses 8.1c 30,799 30,741

TOTAL EQUITY 46,904 46,846


3


CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2018

Note 2018 2017

$'000 $'000

Inflows / Inflows /

CASH FLOWS FROM OPERATING ACTIVITIES (Outflows) (Outflows)

Operating grants from government 16,240 13,974

Capital grants from government 645 476

Patient and resident fees received 2,332 2,210

Donations and bequests received 24 37

Interest Received 504 540

GST received from / (paid to) ATO (20) (10)

Other receipts 2,618 2,787

Total receipts 22,343 20,014

Employee expenses paid (13,369) (12,797)

Non salary labour costs (1,541) (1,481)

Payments for supplies and consumables (1,438) (1,413)

Finance Costs (2) -

Other payments (3,060) (2,409)

Total payments (19,410) (18,100)

NET CASH FLOW FROM /(USED IN) OPERATING ACTIVITIES 8.2 2,933 1,914

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for non-financial assets (506) (369)

Proceeds from sale of non-financial assets 53 83

Payments for Intangible Assets (36) (30)

Proceeds from/(purchase of) Investments (7,584) (1,441)

NET CASH FLOW FROM / (USED IN) INVESTING ACTIVITIES (8,073) (1,757)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds/(Repayment) from Borrowings (21) (13)

NET CASH FLOW FROM / (USED IN) FINANCING ACTIVITIES (21) (13)

NET INCREASE / (DECREASE) IN CASH HELD (5,161) 144

CASH AND CASH EQUIVALENTS AT BEGINNING OF FINANCIAL YEAR 7,700 7,556

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 6.2 2,539 7,700


4


STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018

Property, Plant Restricted Contributed Accumulated Total

& Equipment Specific Capital Surpluses

Revaluation Purpose

Note Surplus Reserve

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

Balance at 1 July 2016 9,795 340 5,446 31,315 46,896

Net result for the year 8.1c - - - (574) (574)

Capital appropriation received from Victorian Government 8.1b - - 385 - 385

Other comprehensive income for the year 8.1a 139 - - - 139

Balance at 30 June 2017 9,934 340 5,831 30,741 46,846

Net result for the year 8.1c - - - 58 58

Capital appropriation received from Victorian Government 8.1b - - - - -

Other comprehensive income for the year 8.1a - - - - -

Balance at 30 June 2018 9,934 340 5,831 30,799 46,904


5

Numurkah District Health Service

Notes to Financial Statements

30 June 2018

BASIS OF PRESENTATION

The financial statements are prepared in accordance with Australian Accounting Standards and relevant FRDs.

These financial statements are presented in Australian dollars and the historical cost convention is used unless a different measurement

basis is specifically disclosed in the note associated with the item measured on a different basis.

The accrual basis of accounting has been applied in the preparing these financial statements whereby assets, liabilities, equity,

income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is contributed capital and its repayment)

are treated as equity transactions and, therefore, do not form part of the income and expenses of the health service.

Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers

that are in the nature of contributions to or distributions by owners have also been designated as contributions by owners.

Transfers of net assets arising from administrative restructurings are treated as distributions to or contribution by owners. Transfer of net

liabilities arising from administrative restructurings are treated as distribution to owners.

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

These annual financial statements represent the audited general purpose financial statements for Numurkah District Health Service

(ABN 24 620 742 736) for the year ended 30 June 2018. The report provides users with information about Numurkah District Health

Services' stewardship of resources entrusted to it.

(a) Statement of compliance

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

Management Act 1994, and applicable AASs, which include interpretations issued by the Australian Accounting Standards

Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements .

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

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

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

Services under the AASB's.

The annual financial statements were authorised for issue by the Board of Numurkah District Health Service on 27th August, 2018.

(b) Reporting Entity

The financial statements includes all the controlled activities of Numurkah District Health Service.

Its principal address is:

2 Katamatite Road

Numurkah Vic 3636

A description of the nature of Numurkah District Health Service's operations and its principal activities is included in the report of operations,

which does not form part of these financial statements.

6

Numurkah District Health Service

Notes to Financial Statements

30 June 2018

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(c) Basis of accounting preparation and measurement

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of

relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2018, and the

comparative information presented in these financial statements for the year ended 30 June 2017. Comparatives have been adjusted

to conform with changes in presentation for the current financial year.

The financial statements are prepared on a going concern basis.

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

All amounts shown in the financial statements have been rounded to the nearest thousand dollars, unless otherwise stated. Minor

discrepancies in tables between totals and sum of components are due to rounding.

The Health Service operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital

Funds.

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.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily

apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The estimates and

associated assumptions are based on professional judgements derived from historical experience and various experience and various

other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are

affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects

on the financial statements and estimates relate to:

• The fair value of property, plant and equipment, (refer to Note 4.2);

• Superannuation expense (refer to Note 3.4); and

• Employee benefit provisions based on likely tenure of existing staff, patterns of leave claims,

future salary movements and future discount rates (refer to Note 3.3).

Goods and Services Tax (GST)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable

from the Australian Taxation Office (ATO). In this case the GST payable is recognised as part of the cost of acquisition of the

asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable

from, or payable to, the ATO is included with other receivables or payables in the Balance Sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which

are recoverable from, or payable to the ATO, are presented as operating cash flow.

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

(d) Jointly Controlled Operation

Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant

activities require the unanimous consent of the parties sharing control.

In respect of any interest in joint operations, the Health Service recognises in the financial statements:

- its assets, including its share of any assets held jointly;

- any liabilities including its share of liabilities that it had incurred;

- its revenue from the sale of its share of the output from the joint venture operation;

- its share of the revenue from the sale of the output by the operation; and

- its expenses, including its share of any expenses incurred jointly.

Numurkah District Health Service is a Member of the Hume Region Health Alliance Joint Venture and retains joint control

over the arrangement, which it has classified as a joint operation (refer to Note 8.9 Jointly Controlled Operations).

7


Notes to the Financial Statements

30 June 2018

NOTE 2: FUNDING DELIVERY OF OUR SERVICES

The health service’s overall objective is to deliver programs and services that support and enhance the wellbeing of all

Victorians.

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

The Health Service also receives income from the supply of services.

Structure

2.1 Analysis of revenue by source

8



30 June 2018

NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE Admitted Residential Aged Primary Other TOTAL

Patients Aged Care Care Health

2018 2018 2018 2018 2018 2018

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

Government Grants 4,678 5,282 7 2,820 2,450 15,237

Indirect Contributions by Department of Health and Human

Services 12 20 5 12 - 49

Patient and Resident Fees 563 1,610 73 22 84 2,352

Property Income 6 10 5 109 61 191

HRHA Alliance Operating Revenue - - - - 191 191

Diagnostic Imaging - - - - 128 128

Catering and Meal Sales 2 23 1 - 63 89

Other Revenue from Operating Activities 1,077 239 26 359 277 1,978

Total Revenue from Operating Activities 6,338 7,184 117 3,322 3,254 20,215

Interest - - - - - -

Total Revenue from Non-Operating Activities - - - - - -

Capital Purpose Income - - - - 645 645

Capital Interest - - - - 532 532

Donations and Fundraising 6 10 2 6 - 24

HRHA Alliance Capital Revenue - - - - 167 167

Total Capital Purpose Income 6 10 2 6 1,344 1,368

Net gain/(loss) on non-financial assets - - - - 13 13

TOTAL REVENUE 6,344 7,194 119 3,328 4,611 21,596

9



30 June 2018

NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE (Continued)

Admitted Residential Aged Primary Other TOTAL


2017 2017 2017 2017 2017 2017

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

Government Grants 6,325 5,165 3 2,404 - 13,897

Indirect Contributions by Department of Health and Human

Services (7) (12) (3) (7) - (29)

Patient and Resident Fees 347 1,229 73 27 - 1,676

Property Income 3 5 1 11 55 75

HRHA Alliance Operating Revenue - - - - 350 350

Diagnostic Imaging - - - - 135 135

Catering and Meal Sales 1 22 1 - 63 87

Other Revenue from Operating Activities 1,546 261 68 225 2 2,102

Total Revenue from Operating Activities 8,215 6,670 143 2,660 605 18,293

Interest 124 198 50 124 - 496

Total Revenue from Non-Operating Activities 124 198 50 124 - 496

Capital Purpose Income - 427 - - 476 903

Capital Interest - 8 - - - 8

Donations and Fundraising 9 16 3 9 - 37

HRHA Alliance Capital Revenue - - - - 164 164

Total Capital Purpose Income 9 451 3 9 640 1,112

Net gain/(loss) on non-financial assets - - - - 1 1

TOTAL REVENUE 8,348 7,319 196 2,793 1,246 19,902

The Department of Health and Human Services makes certain payments on behalf of the Health Service. These

amounts have been brought to account in determining the operating result for the year by recording them as revenue and

expenses.

Revenue Recognition

Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that

the economic benefits will flow to Numurkah District Health Service and the income can be reliably measured at fair value.

Unearned income at reporting date is reported as income received in advance.

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

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

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

by owners) are recognised as income when the Health Service gains control of the underlying assets irrespective of

whether conditions are imposed on the Health Service's use of the contributions.

Contributions are deferred as income in advance when the health service has a present obligation to repay them and

the present obligation can be reliably measured.

10



30 June 2018

NOTE 2.1: ANALYSIS OF REVENUE BY SOURCE (Continued)

Indirect Contributions from the Department of Health and Human Services

• Insurance is recognised as revenue following advice from the Department of Health and Human Services.

• Long Service Leave (LSL) - Revenue is recognised upon finalisation of movements in LSL liability in line with

the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 04/2017.

Patient and Resident Fees

Patient fees are recognised as revenue on an accrual basis.

Private Practice Fees

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

Revenue from commercial activities

Revenue from commercial activities such as provision of meals to external users is recognised on an accrual basis.

Donations and Other Bequests

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

be appropriated to a surplus such as specific restricted purpose surplus.

Interest Revenue

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

which allocates interest over the relevant period.

Other Income

Other income includes recoveries for salaries and wages and external services provided.

Category Groups

Numurkah District Health Service has used the following category groups for reporting purposes for the current and

previous financial years.

• Admitted Patient Services (Admitted Patients) comprises all acute and subacute admitted patient

services, where services are delivered in public hospitals.

• Aged Care comprises a range of in home, specialist geriatric, residential care and community based programs

and support services, such as Home and Community Care (HACC) that are targeted to older people, people

with a disability, and their carers.

• Primary, Community and Dental Health comprises a range of home based, community based, community,

primary health and dental services including health promotion and counselling, physiotherapy, speech therapy,

podiatry and occupational therapy and a range of dental health services.

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

psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services

in receipt of supplementary funding from the department the mental health program. It excludes all other

residential services funded under the mental health program, such as mental health funding community care

units and secure extended care units.

• Other Services not reported elsewhere - (Other) comprises services not separately classified above,

including: Public Health Services including laboratory testing, blood borne viruses / sexually transmitted

infections clinical services, Kooris liaison officers, immunisation and screening services, drugs services

including drug withdrawal, counselling and the needle and syringe program, Disability services including aids

and equipment and flexible support packages to people with a disability, Community Care programs including

sexual assault support, early parenting services, parenting assessment and skills development, and various

support services. Health and Community Initiatives also falls in this category group.

11



30 June 2018

NOTE 3: THE COST OF DELIVERING SERVICES

This section provides an account of the expenses incurred by the health service in delivering services and outputs. In

Note 2, the funds that enable the provision of services were disclosed and in this note the cost associated with provision

of services are recorded.

Structure

3.1 Analysis of expenses by source

3.2 Finance Costs

3.3 Employee benefits in the Balance Sheet

3.4 Superannuation

12



30 June 2018

NOTE 3.1: ANALYSIS OF EXPENSE BY SOURCE Admitted Residential Aged Primary Other TOTAL


2018 2018 2018 2018 2018 2018

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

Employee Expenses 3,437 6,059 629 1,606 1,962 13,693

Other Operating Expenses

Non Salary Labour Costs 1,200 103 - 238 - 1,541

Supplies and Consumables 573 587 28 40 212 1,440

Other Expenses

- Medical Indemnity Insurance 8 13 3 9 - 33

- Fuel, Light, Power and Water 69 224 14 42 13 362

- Repairs and Maintenance 101 199 11 47 11 369

- Other Expenses 342 485 105 343 951 2,226

Total Other Expenses 520 921 133 441 975 2,990

Total Expenditure from Operating Activities 5,730 7,670 790 2,325 3,149 19,664

Other Non-Operating expenses

Revaluation of Long Service Leave - - - - (58) (58)

Expenditure for Capital Purposes - - - - 82 82

Depreciation and Amortisation (refer note 4.3) - - - - 1,848 1,848

Total Other Expenses - - - - 1,872 1,872

TOTAL EXPENSES 5,730 7,670 790 2,325 5,021 21,536

Admitted Residential Aged Primary Other TOTAL


2017 2017 2017 2017 2017 2017

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

Employee Expenses 4,668 6,106 595 1,535 175 13,079

Other Operating Expenses

Non Salary Labour Costs 1,205 106 - 170 - 1,481

Supplies and Consumables 567 585 28 37 201 1,418

Other Expenses

- Medical Indemnity Insurance 13 22 5 13 - 53

- Fuel, Light, Power and Water 47 142 10 29 9 237

- Repairs and Maintenance 91 185 6 29 20 331

- Other Expenses 1,075 512 112 307 21 2,027

Total Other Expenses 1,226 861 133 378 50 2,648

Total Expenditure from Operating Activities 7,666 7,658 756 2,120 426 18,626

Other Non-Operating expenses

Revaluation of Long Service Leave - - - - (64) (64)

Expenditure for Capital Purposes 31 31

Depreciation and Amortisation (refer note 4.3) - - - - 1,883 1,883

Total Other Expenses - - - - 1,850 1,850

TOTAL EXPENSES 7,666 7,658 756 2,120 2,276 20,476

13



30 June 2018

NOTE 3.1: ANALYSIS OF EXPENSE BY SOURCE (Continued)

Expense recognition

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

Employee expenses

Employee expenses include:

• Wages and salaries;

• Leave Entitlements;

• Termination Payments;

• Workcover Premiums; and

• Superannuation expenses

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

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

• Supplies and Consumables - Supplies and service costs which are recognised as an expense in the

reporting period in which they are incurred. The carrying amounts of any inventories held for distribution

are expensed when distributed.

• Fair value of assets, services and resources provided free of charge or for nominal consideration -

Contributions of resources provided free of charge or for nominal consideration are recognised at

control over them.

Bad and Doubtful Debts

Refer to Note 4.1 Investments and other financial assets.

Borrowing costs of qualifying assets

In accordance with the paragraphs of AASB 123 Borrowing Costs applicable to not-for-profit public sector entities, the

Health Services continues to recognise borrowing costs immediately as an expense, to the extent that they are directly

attributable to the acquisition, construction or production of a qualifying asset.

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 4.2 Property Plant & Equipment).

- Net gain/ (loss) on disposal of non-financial assets

Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal.

Net gain/ (loss) on financial instruments

Net gain/ (loss) on financial instruments includes:realised and unrealised gains and losses from revaluations of financial instruments at fair value;

• impairment and reversal of impairment for financial instruments at amortised cost refer to

• Note 4.1 Investments and other financial assets; and

• disposals of financial assets and derecognition of financial liabilities

Impairment of Non-Financial Assets

Goodwill and intangible assets with indefinite useful lives (and intangible assets not available for use) are tested annually for impairment and whenever there is an indication that the asset may be impaired. Refer to Note 4.1 Investments and other financial assets.

Other gains/(losses) from Other Economic FlowsOther gains/ (losses) include:

• the revaluation of the present value of the long service leave liability due to changes in the bond rate movements, inflation rate movements and the impact of changes in probability factors; and

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

14



30 June 2018

NOTE 3.1: ANALYSIS OF EXPENSE BY SOURCE (Continued)

Derecognition of financial liabilities

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

Financial guarantee

Payments that are contingent under financial guarantee contracts are recognised as a liability at the time the guarantee is

issued. The liability is initially measured at fair value, and if there is a material increase in the likelihood that the guarantee

may have to be exercised, then it is measured at the higher of the amount determined in accordance with AASB 137

Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation,

where appropriate.

15



30 June 2018

NOTE 3.2: FINANCE COSTS 2018 2017

$'000 $'000

Finance Charges on Finance Leases 2 -

TOTAL FINANCE COSTS 2 -

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

Finance costs include:

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

NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET 2018 2017

$'000 $'000

Current Provisions

Employee Benefits (i)

Annual Leave

- unconditional and expected to be settled wholly within 12 months (ii) 900 794

Long Service Leave


- unconditional and expected to be settled wholly after 12 months (iii) 806 748

Accrued Days Off


Accrued Wages & Salaries


2,391 2,153

Provisions related to Employee Benefit on-costs


- unconditional and expected to be settled wholly after 12 months (iii) 88 83

329 328

Total Current Provisions 2,720 2,481

Non-Current Provisions

Employee Benefits (i) 282 257

Provisions related to employee benefit on-costs 31 29

Total Non-Current Provisions 313 286

Total Provisions 3,033 2,767

16



30 June 2018

NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET (Continued)

(a) Employee Benefits and Related on-costs 2018 2017

$'000 $'000

Current Employee Benefits and related on-costs

Annual Leave Entitlements 1,121 1,015

Accrued Wages and Salaries 476 366

Accrued Days Off 23 28

Unconditional Long Service Leave Entitlements 1,100 1,072

Non-Current Employee Benefits and related on-costs

Conditional Long Service Leave Entitlements (present value) (iii) 313 286

Total Employee Benefits & related on-costs 3,033 2,767

Notes:

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

including on-costs.

(ii) The amounts disclosed are nominal amounts

(iii) The amounts disclosed are discounted to present values

Movements in provisions 2018 2017

$'000 $'000

Movement in Long Service Leave

Balance at start of year 1,358 1,303

Revaluations 58 64

Provision made during the year 154 96

Settlement made during the year (157) (105)

Balance at end of year 1,413 1,358

Employee Benefit Recognition

Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for

services rendered to the reporting date as an expense during the period the services are delivered.

Provisions

Provisions are recognised when the Health Service has a present obligation, the future sacrifice of economic benefits is probable,

and the amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting

date, taking into account the risks and uncertainties surrounding the obligation.

Employee Benefits

This provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service

leave for services rendered to the reporting date.

Wages and Salaries, Annual Leave and Accrued Days Off

Liabilities for wages and salaries, annual leave and accrued days off are all recognised in the provision for employee benefits as

‘current liabilities’, because the health service does not have an unconditional right to defer settlements of these liabilities.

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

• Undiscounted value – if the health service expects to wholly settle within 12 months; or

• Present value – if the health service does not expect to wholly settle within 12 months.

17



30 June 2018

NOTE 3.3: EMPLOYEE BENEFITS IN THE BALANCE SHEET (Continued)

Long Service Leave (LSL)

The liability for LSL is recognised in the provision for employee benefits.

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does

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

of the entitlement should an employee take leave within 12 months. An unconditional right arises after a qualifying period.

The components of this current LSL liability are measured at:

• Undiscounted value – if the health service expects to wholly settle within 12 months; or

• Present value – if the health service does not expect to settle a component of this current liability within 12 months

Conditional LSL is disclosed as a non-current liability. Any gain or loss following revaluation of the present value of non-current LSL

liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in estimations e.g. bond rate

movements, inflation rate movements and changes in probability factors which are then recognised as other economic flows.

Termination Benefits

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

employee decides to accept an offer of benefits in exchange for the termination of employment.

On-Costs related to employee expense

Provision for on-costs, such as workers compensation and superannuation are recognised together with provisions

for employee benefits.

NOTE 3.4: SUPERANNUATION

Fund

2018 2017 2018 2017

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

Defined Benefit Plans: Health Super 62 55 - -

Defined Contribution Plans: Health Super 632 662 - -

HESTA 400 380 - -

TOTAL 1,094 1,097 - -

Employees of the Health Service are entitled to receive superannuation benefits and the Health Service contributes to both defined

benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average

salary.

Defined contribution superannuation plans

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

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

Contributions to defined contribution superannuation plans are expensed when incurred.

Defined benefit superannuation plans

The amount charged to the Comprehensive Operating Statement in respect of defined benefit superannuation plans represents

the contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service

staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan,

and are based upon actuarial advice.

The Health service does not recognise any unfunded defined benefit liability in respect of the plan(s) because the entity has no legal or

constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as

they fall due. The Department of Treasury and Finance discloses the State's defined benefits liabilities in its disclosure for

administered terms.

However superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the

comprehensive operating statement of the Health Service. The name, details and amounts expensed in relation to the major

employee superannuation funds and contributions made by the Health Service are disclosed above.

for the year

Contributions outstandingContributions Paid or

Payable for the year

18



30 June 2018

NOTE 4: KEY ASSETS TO SUPPORT SERVICE DELIVERY

The health service controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They

represent the key resources that have been entrusted to the health service to be utilised for delivery of those outputs.

Structure

4.1 Investments and other financial assets

4.2 Property, Plant & Equipment

4.3 Depreciation and amortisation

4.4 Intangible assets

19



30 June 2018

NOTE 4.1: INVESTMENTS AND OTHER FINANCIAL ASSETS

2018 2017 2018 2017 2018 2017

CURRENT $'000 $'000 $'000 $'000 $'000 $'000

Loans and receivables

Term Deposit

Australian Dollar Term deposits > 3 months 24,728 15,383 - - 24,728 15,383

TOTAL CURRENT 24,728 15,383 - - 24,728 15,383

TOTAL 24,728 15,383 - - 24,728 15,383

Represented by:

Health Service Investments 15,966 8,382 - - 15,966 8,382

Monies Held in Trust

- Accommodation Bonds (Refundable Entrance Fees) 8,762 7,001 - - 8,762 7,001

TOTAL 24,728 15,383 - - 24,728 15,383

(i) Term deposits under 'investments and other financial assets' class include only term deposits with maturity greater than 90 days.

Investments and other financial assets

Health Service investments must be in accordance in Standing Direction 3.7.2 – Treasury and Investment Risk Management. Investments

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

delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value,

net of transaction costs.

Investments are classified in the following categories:

• financial assets at fair value through profit or loss;

• held-to-maturity;

• loans and receivables; and

• available-for-sale financial assets.

Numurkah District 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.

Numurkah District Health Service assesses at each balance sheet date whether a financial asset or group of financial assets is

impaired.

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

Derecognition of financial assets

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

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

• the 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

• the Health Service has transferred its rights to receive cash flows from the asset and either:

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

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

control of the asset.

Where the Health Service has neither transferred nor retained substantially all the risks and rewards or transferred control,

the asset is recognised to the extent of the Health Service's continuing involvement in the asset.

Impairment of Financial Assets

At the end of each reporting period, the Department assesses whether there is objective evidence that a financial asset or group of

financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to

annual review for impairment.

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. 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.

Doubtful debts

Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by mutual consent

are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful debts are classified

as other economic flows in the net result.

Capital Fund TotalOperating Fund

20



30 June 2018

NOTE 4.2: PROPERTY, PLANT & EQUIPMENT

(a) Gross carrying amount and accumulated depreciation 2018 2017

$'000 $'000

Land

- Land at Valuation 1,123 1,123

Total Land 1,123 1,123

Buildings

- Buildings Under Construction at cost 101 10

- Buildings at fair value 33,856 33,856

Less Accumulated Depreciation 4,460 3,202

29,396 30,654

Total Buildings 29,497 30,664

Plant & Equipment

- Hume Alliance Plant and Equipment 21 1

- Plant and Equipment at fair value 916 844

Less Accumulated Depreciation 375 266

Total Plant and Equipment 562 579

Medical Equipment

- Medical Equipment at fair value 1,838 1,752

Less Accumulated Depreciation 1,034 821

Total Medical Equipment 804 931

Computers and Communication

- Computers & Communication at fair value 602 569


Total Computers and Communication 70 155

Furniture and Fittings

- Furniture and Fittings at fair value 671 589


Total Furniture and Fittings 480 457

Motor Vehicles

- Motor Vehicles at fair value 377 365


Total Motor Vehicles 222 206

Leased Assets

- HRHA Leased assets at fair value 91 119


Total Leased Assets 36 57

TOTAL 32,794 34,172

Reconciliations of the carrying amounts of each class of asset at the beginning and end of the previous and current

financial year is set out below.

21



30 June 2018

NOTE 4.2: PROPERTY, PLANT & EQUIPMENT (Continued)

(b) Reconciliation of the carrying amounts of each class of asset

Land Buildings Plant & Medical Computers & Furniture Motor Leased Total

Equipment Equipment Communic'ns & Fittings Vehicles Assets

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

Balance at 1 July 2016 984 31,678 576 1,161 251 340 182 70 35,242

Additions - 243 105 47 34 165 137 - 731

Hume Alliance - - 1 - - - - 22 23

Disposals & Written Off Assets - - (9) (12) - (4) (57) - (82)

Revaluation 139 - - - - - - - 139

Depreciation - (1,257) (94) (265) (130) (44) (56) (35) (1,881)

Balance at 30 June 2017 1,123 30,664 579 931 155 457 206 57 34,172

Additions - 91 71 87 33 82 115 - 479

Hume Alliance - - 20 - - - - 7 27

Disposals & Written Off Assets - - - - - - (40) - (40)

Depreciation - (1,258) (108) (214) (118) (59) (59) (28) (1,844)

Balance at 30 June 2018 1,123 29,497 562 804 70 480 222 36 32,794

Land and buildings carried at valuation

An independent valuation of the Health Service's property, plant and equipment was performed by the Valuer-General Victoria to

determine the value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined byreference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction.The valuation was based on independent assessments.

The effective date of the valuation is 30 June 2014.

In compliance with FRD 103F, in the year ended 30 June 2018, Numurkah District Health Service management conducted an annual assessment of the fair value of land and buildings and leased buildings. To facilitate this, management obtained from the Department of Treasury and Finance the Valuer General Victoria indices for the financial year ended 30 June 2018.

The fair value of land had been adjusted by a managerial revaluation in 2017. There was no material financial impact on change in fairvalue of land or buildings for the year ended 30 June 2018.

Managerial Revaluation

Managerial assessments were conducted of plant and equipment including motor vehicles with reference to existing second-hand

markets or obtaining equivalent asset depreciated replacement costs. Management have concluded the current depreciated replacement cost is an accurate representation of fair value at 30 June 2018.

(c) Fair value measurement hierarchy for assets

Level 1 (i)

Level 2 (i)

Level 3 (i)

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

Land at fair value

Specialised land 1,123 - - 1,123

Total of land at fair value 1,123 - - 1,123

Buildings at fair value

Specialised buildings 29,396 - - 29,396

Total of buildings at fair value 29,396 - - 29,396

Plant and equipment at fair value

Plant equipment and vehicles at fair value

- Vehicles (ii) 222 - 222 -

- Plant and equipment 562 - - 562

- Medical Equipment 804 - - 804

- Computers and Communication 70 - - 70

- Furniture and Fittings 480 - - 480

Leased Assets at Fair value 36 - - 36

Total of plant, equipment and vehicles at fair value 2,174 - 222 1,952

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

(ii) Vehicles are categorised to Level 2 assets as a market approach is appropriate for vehicles with an active resale market available.

There have been no transfers between levels during the period.

Fair value measurement at end of

reporting period using:Carrying

amount as at

30 June 2018

22



30 June 2018


(c) Fair value measurement hierarchy for assets (Continued)

Level 1 (i)

Level 2 (i)

Level 3 (i)

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

Land at fair value

Specialised land 1,123 - - 1,123

Total of land at fair value 1,123 - - 1,123

Buildings at fair value

Specialised buildings 30,654 - - 30,654

Total of buildings at fair value 30,654 - - 30,654

Plant and equipment at fair value

Plant equipment and vehicles at fair value

- Vehicles (ii) 206 - 206 -

- Plant and equipment 579 - - 579

- Medical Equipment 931 - - 931

- Computers and Communication 155 - - 155

- Furniture and Fittings 457 - - 457

Leased Assets at Fair value 57 - - 57

Total of plant, equipment and vehicles at fair value 2,385 - 206 2,179

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

(ii) Vehicles are categorised to Level 2 assets as a market approach is appropriate for vehicles with an active resale market available.


Carrying

amount as at

30 June 2017

Fair value measurement at end of

reporting period using:

23



30 June 2018


(d) Reconciliation of Level 3 fair value

30-Jun-18 Land Buildings

Plant and

equipment

$'000 $'000 $'000

Opening Balance 1,123 30,654 2,122

Purchases (sales) - - 293

Transfers in (out) of Level 3 - - -

Gains or losses recognised in net result

- Depreciation - (1,258) (499)

Subtotal 1,123 29,396 1,916

Items recognised in other comprehensive income

- Revaluation - - -

Subtotal - - -

Closing Balance 1,123 29,396 1,916

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

Balance at 30 June 2018 1,123 29,396 1,916


30-Jun-17 Land Buildings

Plant and

equipment

$'000 $'000 $'000

Opening Balance 984 31,678 2,328

Purchases (sales) - 233 327

Transfers in (out) of Level 3 - - -

Gains or losses recognised in net result

- Depreciation - (1,257) (533)

Subtotal 984 30,654 2,122

Items recognised in other comprehensive income

- Revaluation 139 - -

Subtotal 139 - -

Closing Balance 1,123 30,654 2,122

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

Balance at 30 June 2017 1,123 30,654 2,122


24



30 June 2018


(e) Fair Value Determination

- Land subject to restriction as to use Level 3 Market approach Community Service

and/or sale Obligation Adjustments

- Land in areas where there is not

an active market

Specialised Buildings (a) Specialised buildings with limited Level 3 Depreciated replacement - Cost per square metre

alternative uses and/or substantial cost approach - Useful life

customisation eg. Hospitals

Vehicles If there is no active resale market Level 2 Market approach n.a.

Plant and equipment Specialised items with limited Level 3 Depreciated replacement - Cost per unit

alternative uses and/or substantial cost approach - Useful life

cutomisation

(a) AASB 13 Fair Value Measurement provides an exemption for not for profit public sector entities from disclosing the sensitivity analysis

relating to ‘unrealised gains/(losses) on non-financial assets’ if the assets are held primarily for their current service potential rather than

to generate net cash inflows.

Initial Recognition

Items of property, plant and equipment are measured initially at cost and subsequently revalued at fair value less accumulated

depreciation and impairment loss. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition.

The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease

or the estimated useful life of the improvements.

Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or

physical restrictions imposed on the asset, public announcements or commitments made in relation to 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. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their

highest and best uses.

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

accumulated impairment loss.

Subsequent Measure

Consistent with AASB 13 Fair Value Measurement , Numurkah District Health Service determines the policies and procedures for

both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments,

and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the

requirements of AASB 13 Fair Value Measurement and the relevant FRDs.

All property, plant and equipment for which fair value is measured or disclosed in the financial statements are categorised within the

fair value hierarchy.

For the purpose of fair value disclosures, Numurkah District Health Service has determined classes of assets and liabilities on the

basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

In addition, Numurkah District Health Service determines whether transfers have occurred between levels in the hierarchy by

re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the

end of each reporting period.

The Valuer-General Victoria (VGV) is Numurkah District Health Service’s independent valuation agency.

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

Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date.

Likely valuation approach Significant inputs

(Level 3 only)

Specialised land

(Crown/Freehold)

Asset Class Examples of types assets Expected fair value level

25



30 June 2018


Consideration of highest and best use (HBU) for non-financial physical assets

Judgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions

on the use and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements.

In accordance with paragraph AASB 13.29, Health Services can assume the current use of a non-financial physical asset is its

HBU unless market or other factors suggest that a different use by market participants would maximise the value of the asset.

Therefore, an assessment of the HBU will be required when the indicators are triggered within a reporting period, which

suggest the market participants would have perceived an alternative use of an asset that can generate maximum value. Once

identified, Health Services are required to engage with VGV or other independent valuers for formal HBU assessment.

These indicators, as a minimum, include:

External factors:

• Changed acts, regulations, local law or such instrument which affects or may affect the use or development of the asset;

• Changes in planning scheme, including zones, reservations, overlays that would affect or remove the restrictions

imposed on the asset’s use from its past use;

• Evidence that suggest the current use of an asset is no longer core to requirements to deliver a Health Service’s service

obligation; and

• Evidence that suggests that the asset might be sold or demolished at reaching the late stage of an asset’s life cycle.

Valuation hierarchy

Health Services need to use valuation techniques that are appropriate for the circumstances and where there is sufficient data

available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value

hierarchy.

Identifying unobservable inputs (level 3) fair value measurements

Level 3 fair value inputs are unobservable valuation inputs for an asset or liability. These inputs require significant judgement and

assumptions in deriving fair value for both financial and non-financial assets.

Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby

allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However,

the fair value measurement objective remains the same, i.e., an exit price at the measurement date from the perspective of a market

participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market

participants would use when pricing the asset or liability, including assumptions about risk.

Assumptions about risk include the inherent risk in a particular valuation technique used to measure fair value (such as a pricing

risk model) and the risk inherent in the inputs to the valuation technique. A measurement that does not include an adjustment for

risk would not represent a fair value measurement if market participants would include one when pricing the asset or liability i.e.

it might be necessary to include a risk adjustment when there is significant measurement uncertainty. For example, when there

has been a significant decrease in the volume or level of activity when compared with normal market activity for the asset or liability

or similar assets or liabilities, and the Health Service has determined that the transaction price or quoted price does not represent

fair value.

A Health Service shall develop unobservable inputs using the best information available in the circumstances, which might include

the Health Service’s own data. In developing unobservable inputs, a Health Service may begin with its own data, but it shall

adjust this data if reasonably available information indicates that other market participants would use different data or there is

something particular to the Health Service that is not available to other market participants. A Health Service need not undertake

exhaustive efforts to obtain information about other market participant assumptions. However, a Health Service shall take into

account all information about market participant assumptions that is reasonably available. Unobservable inputs developed in the

manner described above are considered market participant assumptions and meet the object of a fair value measurement.

Specialised land and specialised buildings

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

consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation

to the intended use of the asset. Theoretical opportunities that may be available in relation to the assets are not taken into account until

it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial

physical assets will be their highest and best use.

During the reporting period, the Health Service held Crown Land. The nature of this asset means that there are certain limitations

and restrictions imposed on its use and/or disposal that may impact their fair value.

The market approach is used for specialised land and specialised buildings although is adjusted for the community service obligation

(CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments;

therefore these assets are classified as Level 3 under the market based direct comparison approach.

26



30 June 2018


Specialised land and specialised buildings (Continued)

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is

also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value

measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible.

As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.

For the health services, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the

associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised

buildings are classified as Level 3 for fair value measurements.

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

Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2014.

Vehicles

The Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of

acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates during use to

reflect the consumption of the vehicles. Vehicles have been categorised to Level 2 assets as a market approach is appropriate

for vehicles with an active resale market available.

Plant and equipment

Plant and equipment is held at carrying value (depreciated cost). When plant and equipment is specialised in use, such that it is

rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless

there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered

unlikely that depreciated replacement cost will be materially different from the existing carrying value.

There were no changes in valuation techniques throughout the period to 30 June 2018.

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

Revaluations of Non-current Physical Assets

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

assets. This revaluation process normally occurs at least every five years, based upon the asset's Government Purpose

Classification but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers

are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements

of the FRDs. Revaluation increments or decrements arise from differences between an asset's carrying value and fair value.

Revaluation increments are recognised in 'other comprehensive income' and are credited directly to the asset revaluation surplus

except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously

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

Revaluation decrements are recognised in 'other comprehensive income' to the extent that a credit balance exists in the asset

revaluation surplus in respect of the same class of property, plant and equipment.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another

within that class but are not offset in respect of assets in different classes.

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

In accordance with FRD 103F Numurkah District Health Service's non-current physical assets were assessed to determine

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

27



30 June 2018

NOTE 4.3: DEPRECIATION AND AMORTISATION 2018 2017

$'000 $'000

Depreciation

Buildings 1,258 1,257

Plant & Equipment 108 94

Medical Equipment 214 265

Computers & Communication 118 130

Furniture and Fittings 59 44

Motor Vehicles 59 56

HRHA Depreciation 28 35

TOTAL DEPRECIATION 1,844 1,881

Amortisation

Hume Rural Health Alliance Intangible Assets 4 2

1,848 1,883

Depreciation

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

depreciated (i.e. excludes land assets held for sale, and investment properties). Depreciation is generally calculated

on a straight-line basis at rates that allocate the asset’s value, less any estimated residual value over its estimated useful life

(refer AASB 116 Property, Plant and Equipment ).

Amortisation

Amortisation is the systematic allocation of the depreciable amount of an asset over its useful life. If a Health Service has items

such as patents, trademarks, computer software or development expenses that are being capitalised, these should be

included under ‘Intangible Assets’ (refer AASB 138 Intangible Assets ) and amortised.

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

2018 2017

Buildings

- Structure Shell Building Fabric 38 to 45 years 38 to 45 years

- Site Engineering Services and Central Plant 36 to 42 years 36 to 42 years

- Fit Out 20 to 25 years 20 to 25 years

- Trunk Reticulated Building Systems 21 to 25 years 21 to 25 years

Plant & Equipment 3 to 33 years 3 to 33 years

Medical Equipment 5 to 15 years 5 to 15 years

Computers and Communication 3 to 5 years 3 to 5 years

Furniture & Fittings 5 to 20 years 5 to 20 years

Motor Vehicles 4 years 4 years

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

which is represented above.

28



30 June 2018

NOTE 4.4: INTANGIBLE ASSETS 2018 2017

$'000 $'000

Intangible Assets - Hume Rural Health Alliance 28 71

Less Accumulated Amortisation 8 6

TOTAL INTANGIBLE ASSETS 20 65

Reconciliation of the carrying amount of intangible assets at the beginning and end of the previous and current financial year:

HRHA Total

$'000 $'000

Balance at 1 July 2016 37 37

Additions 34 34

Less Amortisation (i) 6 6

Balance at 1 July 2017 65 65

Additions/(Disposals) (37) (37)

Less Amortisation (i) 8 8

Balance at 30 June 2018 20 20

(i) The consumption of separately acquired intangible assets in included in the 'amortisation' line item, where the consumption of the internally generated

intangible assets is included in the 'net gain/(loss) on non-financial assets line item on the comprehensive operating statement.

Intangible assets

Intangible assets represent identifiable non-monetary assets without physical substance such as patents, trademarks, and computer

software and development costs (where applicable).

Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less

accumulated amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it

is expected that additional future economic benefits will flow to Numurkah District Health Service.

29



30 June 2018

NOTE 5: OTHER ASSETS AND LIABILITIES

This section sets out those assets and liabilities that arose from the health services's operations.

Structure

5.1 Receivables

5.2 Inventories

5.3 Other Liabilities

5.4 Prepayments and other assets

5.5 Payables

30



30 June 2018

NOTE 5.1: RECEIVABLES 2018 2017

$'000 $'000

CURRENT

Contractual

Trade Debtors 443 371

Patient Fees 143 123

Accrued Investment Income 81 53

Hume Alliance Receivables 161 107

Less Allowance for Doubtful Debts - (21)

828 633

Statutory

GST Receivable 62 42

Accrued Income - Commonwealth Aged Care Funding - 12

Accrued Revenue - Department of Health and Human Services 205 84

267 138

TOTAL CURRENT RECEIVABLES 1,095 771

NON CURRENT

Statutory

Long Service Leave - Department of Health and Human Services 74 43

TOTAL NON-CURRENT RECEIVABLES 74 43

TOTAL RECEIVABLES 1,169 814

(a) Movement in Allowance for doubtful debts

Balance at beginning of year 21 -

Increase/(decrease) in allowance recognised in profit or loss (21) 21

Balance at end of year - 21

Receivables consist of:

• Contractual receivables, which includes mainly debtors in relation to goods and services, loans to third parties,

accrued investment income, and finance lease receivables.

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

and Services Tax ("GST") input tax credits recoverable.

Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory

receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified

as financial instruments because they do not arise from a contract.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest

rate method, less any accumulated impairment.

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.

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.

Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A

provision for doubtful debts is recognised when there is objective evidence that an impairment loss has occurred. Bad

debts are written off when identified.

31



30 June 2018

NOTE 5.2: INVENTORIES 2018 2017

$'000 $'000

CURRENT

Medical and Surgical Lines - at cost 37 39

TOTAL INVENTORIES 37 39

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

ordinary course of business operations. It excludes depreciable assets.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories

are measured at the lower of cost and net realisable value. Inventories acquired for no cost or nominal

considerations are measured at current replacement cost at the date of acquisition.

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

The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and

technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it

was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no

longer functions the way it did when it was first acquired.

Cost is assigned to other high value, low volume inventory items on a specific identification of cost basis.

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

NOTE 5.3: OTHER LIABILITIES 2018 2017

$'000 $'000

CURRENT

Monies Held in Trust*

- Resident Trust 10 8

- Accommodation Bonds ( Refundable Entrance Fees) 9,676 7,001

TOTAL CURRENT 9,686 7,009

* Total Monies Held in Trust

Represented by the following assets:

Cash Assets (refer to Note 6.2) 924 8

Investments and other Financial Assets (refer to Note 4.1) 8,762 7,001

TOTAL 9,686 7,009

NOTE 5.4: PREPAYMENTS AND OTHER NON-FINANCIAL ASSETS 2018 2017

$'000 $'000

CURRENT

Prepayments 165 132

Hume Alliance Prepayments 3 6

TOTAL CURRENT OTHER ASSETS 168 138

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.

32



30 June 2018

NOTE 5.5: PAYABLES 2018 2017

$'000 $'000

CURRENT

Contractual

Trade Creditors 478 548

Hume Alliance Payables 20 20

Income in Advance 1,919 926

Accrued Expenses - Other 184 146

2,601 1,640

Statutory

Department of Health and Human Services 119 -

119 -

TOTAL PAYABLES 2,720 1,640

Payables consist of:

• contractual payables, classified as financial instruments and measured at amortised cost. Accounts payable represents

liabilities for goods and services provided to the Department prior to the end of the financial year that are unpaid; and

• statutory payables, that 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 contracts.

Note 5.5 (a) Maturity analysis of financial liabilities as at 30 June

The following table discloses the contractual maturity analysis for Numurkah District Health Service's financial

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

statements.

Maturity analysis of financial liabilities as at 30 June

Less than 1 - 3 3 Months 1 - 5

Carrying Nominal 1 Month Months - 1 Year Years

Amount Amount

2018 $'000 $'000 $'000 $'000 $'000 $'000

Financial Liabilities

At amortised cost

Payables 2,601 2,601 2,601 - - -

Borrowings 36 36 - - 18 18

Other Financial Liabilities (i)

- Accommodation Bonds 9,686 9,686 - - 9,686 -

Total Financial Liabilities 12,323 12,323 2,601 - 9,704 18

2017


At amortised cost

Payables 1,640 1,640 1,640 - - -

Borrowings 57 57 - - 27 30

Other Financial Liabilities (i)

- Accommodation Bonds 7,009 7,009 - - 7,009 -

Total Financial Liabilities 8,706 8,706 1,640 - 7,036 30

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

Maturity Dates

33



30 June 2018

NOTE 6: HOW WE FINANCE OUR OPERATIONS

This section provides information on the sources of finance utilised by the health service during its operations, along with interest

expenses (the cost of borrowings) and other information related to financing activities of the health service.

This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note: 7.1

provides additional, specific financial instrument disclosures.

Structure

6.1 Borrowings

6.2 Cash and cash equivalents

6.3 Commitments for expenditure

34



30 June 2018

NOTE 6.1: BORROWINGS 2018 2017

$'000 $'000

CURRENT

Australian Dollar Borrowings

- Finance Lease Liability - HRHA Alliance (i) 18 27

Total Australian Dollars Borrowings - Current 18 27

NON CURRENT

Australian Dollar Borrowings

- Finance Lease Liability - HRHA Alliance (i) 18 30

Total Australian Dollars Borrowings - Non Current 18 30

Total Borrowings 36 57

(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessorin the event of default.

(a) Maturity analysis of borrowingsPlease refer to note 5.5(a) for the ageing analysis of borrowings.

(b) Defaults and breaches

During the current and prior year, there were no defaults and breaches of any of the borrowings.

Borrowing Recognition

A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as

inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and

rewards incidental to ownership.

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

all the risks and rewards of ownership to the lessee.

All other leases are classified as operating leases.

Finance leases

Entity as lessee

Finance leases are recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present

value of the minimum lease payment, each determined at the inception of the lease. The lease asset is accounted for as a non-financial

physical asset and is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Minimum lease payments are apportioned between reduction of the outstanding lease liability, and the periodic finance expense which

is calculated using the interest rate implicit in the lease, and charged directly to the comprehensive operating statement. Contingent

rentals associated with finance leases are recognised as an expense in the period in which they are incurred.

Leasehold Improvements

The cost of leasehold improvements are capitalised as an asset and depreciated over the remaining term of the lease or the estimated

useful life of the improvements, whichever is the shorter.

35



30 June 2018

NOTE 6.2: CASH AND CASH EQUIVALENTS

For the purposes of the Cash Flow Statement, cash assets includes cash on hand and

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

subject to an insignificant risk of change in value, net of outstanding bank overdrafts. 2018 2017

$'000 $'000

Cash on Hand 1 1

Cash at Bank 2,324 7,559

Short Term Money Market 914 -

Cash at Bank - Hume Alliance 224 148

TOTAL CASH AND CASH EQUIVALENTS 3,463 7,708

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement) 2,539 7,700

Cash at Bank - Hume Alliance - -

Cash for Monies Held in Trust

- Cash at Bank 924 8

TOTAL CASH AND CASH EQUIVALENTS 3,463 7,708

Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and

highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term

cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash and are subject to

insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities

on the balance sheet.

NOTE 6.3: COMMITMENTS FOR EXPENDITURE 2018 2017

$'000 $'000

Lease Commitments

Commitments in relation to leases contracted for at the reporting date:

Finance Leases 36 57

Total Lease Commitments 36 57

Finance Leases

Commitments in relation to finance leases are payable as follows:

Current 19 30

Non-Current 19 32

Minimum Lease Payments 38 62

Less Future Finance Charges 2 5

Total Finance Lease Commitments 36 57

Total Lease Commitments 36 57

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

disclosed by way of a note 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.

36



30 June 2018

NOTE 7: RISKS, CONTINGENCIES & VALUATION UNCERTAINTIES

The health service is exposed to risk from its activities and outside factors. In addition, it is often necessary to make judgements and

estimates associated with recognition and measurement of items in the financial statements. This section sets out financial

instrument specific information, (including exposures to financial risks) as well as those items that are contingent in nature or

require a higher level of judgement to be applied, which for the health service is related mainly to fair value determination.

Structure

7.1 Financial instruments

7.2 Contingent assets and contingent liabilities

37



30 June 2018

NOTE 7.1: FINANCIAL INSTRUMENTS

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or

equity instrument of another entity. Due to the nature of Numurkah District 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.

(a) Financial Instruments: Categorisation

Contractual

financial assets -

loans and

receivables

Contractual

financial

liabilities at

amortised

cost Total

2018 $'000 $'000 $'000

Contractual Financial Assets

Cash and cash equivalents 3,463 - 3,463

Receivables 828 - 828

Other Financial Assets 24,728 - 24,728

Total Financial Assets (i) 29,019 - 29,019


Payables - 2,601 2,601

Borrowings - 36 36

Other Financial Liabilities - 9,686 9,686

Total Financial Liabilities(ii) - 12,323 12,323

Contractual

financial assets -

loans and

receivables

Contractual

financial

liabilities at

amortised

cost Total

2017 $'000 $'000 $'000

Contractual Financial Assets

Cash and cash equivalents 7,708 - 7,708

Receivables 633 - 633

Other Financial Assets 15,383 - 15,383

Total Financial Assets (i) 23,724 - 23,724


Payables - 1,640 1,640

Borrowings - 57 57

Other Financial Liabilities - 7,009 7,009

Total Financial Liabilities(i) - 8,706 8,706

(i) The carrying amount excludes statutory receivables (i.e. GST Receivable and DHHS Receivable) and statutory payables (i.e. Revenue

in advance and DHHS payable).

38



30 June 2018

NOTE 7.1: FINANCIAL INSTRUMENTS (Continued)

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

Total interest

income/

(expense) Total

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

2018

Financial Assets

Cash and cash equivalents(i) - 187 - - 187

Loans and Receivables(i) - 345 - - 345

Total Financial Assets - 532 - - 532


At amortised cost (ii) - (2) - - (2)

Total Financial Liabilities - (2) - - (2)

2017

Financial Assets

Cash and cash equivalents(i) - 151 - - 151

Loans and Receivables(i) - 345 - - 345

Total Financial Assets - 496 - - 496


At amortised cost (ii) - - - - -

Total Financial Liabilities - - - - -

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated

by taking the movement in the fair value of the asset, interest revenue, plus or minus foreign exchange gains or losses arising

from revaluation of the financial assets, and minus any impairment recognised in the net result;

(ii) For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense

measured at amortised cost.

Categories of financial instruments

Loans and receivables and cash

Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an

active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent

to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less

any impairment.

Loans and receivables category includes cash and deposits (refer to Note 6.2), term deposits with maturity greater than

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

Financial liabilities at amortised cost

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. The Health Service recognises the following liabilities in this category:

- payables (excluding statutory payables);

-borrowings (including finance lease liabilities).

Derecognition of financial assets

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

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

- the 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

- the Health Service has transferred its rights to receive cash flows from the asset and either:

- has transferred substantially all the risks and rewards of the asset; or

- has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred

control of the asset.

Where the Health Service has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset

is recognised to the extent of the Health Service’s continuing involvement in the asset.

Impairment

loss

Net holding

gain/(loss)

Fee income /

(expense)

39



30 June 2018

NOTE 7.1: FINANCIAL INSTRUMENTS (Continued)

Impairment of financial assets

At the end of each reporting period, the Health Service assesses whether there is objective evidence that a financial asset or group of

financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to

annual review for impairment.

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. 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.

Reclassification of financial instruments

Subsequent to initial recognition and under rare circumstances, non-derivative financial instruments assets that have not been designated

at fair value through profit or loss upon recognition, may be reclassified out of the fair value through profit or loss category, if they are no

longer held for the purpose of selling or repurchasing in the near term.

Financial instrument assets that meet the definition of loans and receivables may be reclassified out of the fair value through profit and loss

category into the loans and receivables category, where they would have met the definition of loans and receivables had they not been

required to be classified as fair value through profit and loss. In these cases, the financial instrument assets may be reclassified out of the

fair value through profit and loss category, if there is the intention and ability to hold them for the foreseeable future or until maturity.

Available-for sale financial instrument assets that meet the definition of loans and receivables may be classified into the loans and

receivables category if there is the intention and ability to hold them for the foreseeable future or until maturity.

Derecognition of financial liabilities

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

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

liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the

recognition of a new liability. The difference in the respective carrying amounts is recognised as an ‘other economic flow’ in the

comprehensive operating statement.

NOTE 7.2: CONTINGENT LIABILITIES AND CONTINGENT ASSETSContingent 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.

There are no known contingent assets or liabilities for Numurkah District Health Service as at the date of this report.

40



30 June 2018

NOTE 8: OTHER DISCLOSURES

This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial

report.

Structure

8.1 Equity

8.2 Reconciliation of net result for the year to net cash inflow/(outflow) from operating activities

8.3 Responsible persons disclosures

8.4 Remuneration of Executives

8.5 Related parties

8.6 Remuneration of Auditors

8.7 AASBs issued that are not yet effective

8.8 Events occurring after the balance sheet date

8.9 Jointly controlled operations and assets

8.10 Alternative presentation of comprehensive operating statement

8.11 Economic Dependency

41



30 June 2018

NOTE 8.1: EQUITY 2018 2017

$'000 $'000

(a) Surpluses

Property, Plant & Equipment Revaluation Surplus ¹

Balance at beginning of the reporting period

- Land 655 516

- Buildings 9,209 9,209

- Plant & Equipment 70 70

Revaluation Increment/Decrement

- Land - 139

Balance at the end of the reporting period 9,934 9,934

Represented by:

- Land 655 655

- Buildings 9,209 9,209

- Plant & Equipment 70 70

9,934 9,934

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

(b) Restricted Specific Purpose Reserve

Balance at the beginning of the reporting period 340 340

Balance at the end of the reporting period 340 340

Total Surpluses 10,274 10,274

Contributed Capital

Balance at the beginning of the reporting period 5,831 5,446

Capital Contribution received from the Victorian Government - 385


(c) Accumulated Surpluses

Balance at the beginning of the reporting period 30,741 31,315

Net Result for the Year 58 (574)


(d) Total Equity at end of financial year 46,904 46,846

Contributed Capital

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

Public Sector Entities and FRD 119A Contributions by Owners , appropriations for additions to the net asset

base have been designated as contributed capital. Other transfers that are in the nature of contributions

or distributions, that have been designated as contributed capital are also treated as contributed capital.

Transfers of net assets arising from administrative restructurings are treated as contributions by owners. Transfers of net

liabilities arising from administrative restructures are to go through the comprehensive operating statement.

Property, Plant & Equipment Revaluation Surplus

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

Specific Restricted Purpose Reserve

A specific restricted purpose reserve is established where the Health Service has possession or title to the funds but has no discretion

to amend or vary the restriction and/or condition underlying the funds received.

42



30 June 2018

NOTE 8.2: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH

FLOWS FROM OPERATING ACTIVITIES 2018 2017

$'000 $'000


Non-cash Movements

Depreciation and Amortisation 1,848 1,883

Provision for Doubtful Receivables (21) 21

Impairment of Intangible Assets 77 -

Movements included in investing and financing activities

Net (Gain)/Loss from Disposal of Plant and Equipment (13) (1)

Movements in Assets and liabilities

Change in Operating Assets & Liabilities

(Increase)/Decrease in Receivables (334) (9)

(Increase)/Decrease in Other Assets (30) 37

(Increase)/Decrease in Inventories 2 5

Increase/(Decrease) in Payables 1,080 334

Increase/(Decrease) in Provisions 266 218

NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES 2,933 1,914

NOTE 8.3: RESPONSIBLE PERSON DISCLOSURES

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following

disclosures are made regarding responsible persons for the reporting period.

Responsible Ministers:

The Honourable Jill Hennessy, Minister for Health, Minister for Ambulance Services 01/07/2017 - 30/06/2018

The Honourable Martin Foley, Minister for Housing, Disability and Ageing, Minister for Mental Health 01/07/2017 - 30/06/2018

Governing Boards

Mr Michael Buha 01/07/2017 - 30/06/2018

Mrs Kate Hodge 01/07/2017 - 30/06/2018

Mr Andrew Lelliott 01/07/2017 - 30/06/2018

Ms Barbara McKeown 01/07/2017 - 30/06/2018

Mr Nathan Morris 01/07/2017 - 30/06/2018

Ms Helen Nicholas 01/07/2017 - 30/06/2018

Mrs Melissa Nicoll 01/07/2017 - 30/06/2018

Mr Michael Tymensen 01/07/2017 - 30/06/2018

Mr John Watson 01/07/2017 - 30/06/2018

Accountable Officer

Ms Jacque Phillips 01/07/2017 - 30/06/2018

Remuneration of Responsible Persons

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

2018 2017

Income Band No. No.

$0 - $9,999 9 9

$240,000 - $249,999 - 1

$260,000 - $269,999 1 -

Total Numbers 10 10

Total remuneration received or due and receivable by

Responsible Persons from the reporting entity amounted to:

Amounts relating to Responsible Ministers are reported within the Department of Parliamentary Services' Financial Report as disclosed in Note 8.6.

Period

$243,828 $262,995

43



30 June 2018

NOTE 8.4: REMUNERATION OF EXECUTIVES

The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown

in the table below. Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is

disclosed in the following categories:

Short-term Employee Benefits

Salaries and wages, annual leave or sick leave that are usually paid or payable on a regular basis, as well as non-monetary benefits

such as allowances and free or subsidised goods or services.

Post-employment Benefits

Pensions and other retirement benefits paid or payable on a discrete basis when employment has ceased.

Other Long-term Benefits

Long service leave, other long-service benefit or deferred compensation.

Termination benefits

Termination of employment payments, such as severance packages.

Remuneration of executive officers

2018 2017

$ $

Short-term employee benefits 353,994 330,521

Post-employment benefits 32,365 31,481

Other long-term benefits 11,750 10,628

Termination benefits - -

Total Remuneration 398,109 372,630

Total Number of executives (i) 3 3

Total annualised employee equivalent (AEE) (ii) 3 3

Notes:

(i) The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of the entity under

AASB 124 Related Party Disclosures and are also reported within the related parties note disclosure (Note 8.5).

(ii) Annualised employee equivalent is based on the time fraction worked over the reporting period. This is calculated as the total number of days the

employee is engaged to work during the week by the total number of full-time working days per week (this is generally five full working days

per week).

Total Remuneration

44



30 June 2018

NOTE 8.5: RELATED PARTIES

The health service is a wholly owned and controlled entity of the State of Victoria. Related parties of the hospital include:

• all key management personnel and their close family members;

• all cabinet ministers and their close family members; and

• Jointly Controlled Operation - A member of the Hume Rural Health Alliance; and

• all health service's and public sector entities that are controlled and consolidated into the whole of state consolidated financial

statements.

KMPs are those people with the authority and responsibility for planning, directing and controlling the activities of the Health Service

directly or indirectly.

The Board of Directors and the Executive Directors of Numurkah District Health Service are deemed to be KMPs.

Entity KMPs Position Title

Numurkah District Health Service Mr Michael Buha Chair of the Board

Numurkah District Health Service Mrs Melissa Nicoll Vice Chair

Numurkah District Health Service Mr Andrew Lelliott Board Member

Numurkah District Health Service Ms Barbara McKeown Board Member

Numurkah District Health Service Mr Nathan Morris Board Member

Numurkah District Health Service Ms Helen Nicholas Board Member

Numurkah District Health Service Mrs Kate Hodge Board Member

Numurkah District Health Service Mr Michael Tymensen Board Member

Numurkah District Health Service Mr John Watson Board Member

Numurkah District Health Service Ms Jacque Phillips Chief Executive Officer

The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances

is set by the Parliamentary Salaries and Superannuation Act 1968, and is reported within the Department of Parliamentary Services’ Financial Report.

(i)Total remuneration paid to KMPs employed as a contractor during the reporting period through accounts payable has been reported

under short-term employee benefits.

(ii)KMPs are also reported in Note 8.3 Resposible Persons or Note 8.4 Remuneration of Executives.

Significant transactions with government-related entities

Numurkah District Health Service received funding from the Department of Health and Human Services of $11,315,986 (2017: $10,247,193).

Expenses incurred by the Health Service in delivering services and outputs are in accordance with Health Purchasing Victoria requirements.

Goods and services including procurement, diagnostics, patient meals and multi-site operational support are provided by other Victorian Health

Service Providers on commercial terms.

Professional medical indemnity insurance and other insurance products are obtained from a Victorian Public Financial Corporation.

Treasury Risk Management Directions require the Health Service to hold cash (in excess of working capital) and investments, and source

all borrowings from Victorian Public Financial Corporations.

Transactions with key management personnel and other related parties

Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner

consistent with other members of the public e.g. stamp duty and other government fees and charges. Further employment of

processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004

and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on

terms and conditions consistent with the Victorian Government Procurement Board requirements.

Outside of normal citizen type transactions with the department, there were no related party transactions that involved key

management personnel and their close family members. No provision has been required, nor any expense recognised, for

impairment of receivables from related parties.

There were no related party transactions with Cabinet Ministers required to be disclosed in 2018.

There were no related party transactions required to be disclosed for Numurkah District Health Service Board of Directors

and Executive Directors in 2018.

0

COMPENSATION

Short term employee benefits 234

Post-employment benefits 22

Termination benefits

2018

$'000

263

Other long-term benefits 7

2017

$'000

217

0

20

6

243Total

45



30 June 2018

NOTE 8.6: REMUNERATION OF AUDITORS 2018 2017

$'000 $'000

Victorian Auditor-General's Office 14 14

Audit or review of financial statement 14 14

NOTE 8.7: AASBs ISSUED THAT ARE NOT YET EFFECTIVE

Certain new Australian accounting standards and interpretations have been published that are not mandatory for 30

June 2018 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their

applicability and early adoption where applicable.

As at 30 June 2018, 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. Numurkah District Health Service has not and does not intend to adopt these standards early.

01-Jan-18

01-Jan-18

01-Jan-18

01-Jan-18

01/01/2018

except

amendments to

AASB 9 (Dec

2009) and AASB

9 (Dec 2010)

apply from 1 Jan

2018

01-Jan-18AASB 2015-8 Amendments to

Australian Accounting

Standards - Effective Date of

AASB 15

This Standard defers the mandatory effective

date of AASB 15 from 1 January 2017 to 1

January 2108

The amending standard will defer the application period of

AASB 15 for for-profit entities to the 2018-19 reporting

period in accordance with the transition requirements.

Impact on financial statements

AASB 2014-5 Amendments to

Australian Accounting Standards

arising from AASB 15

Amends the measurement of trade receivables

and the recognition of dividends as follows:

- Trade receivables that do not have a significant

financing component, are to be measured at their

transaction price at initial recognition.

- Dividends are recognised in the profit and loss

only when:

* the entity's right to receive payment of the

dividend is established;

* it is probable the economic benefits associated

with the dividend will flow to the entity; and

* the amount can be measured reliably.

The assessment has indicated there will be no significant

impact for the public sector.

AASB 2014‑1 Amendments to


Standards [Part E Financial

Instruments]

Amends various AASs to reflect the AASB’s

decision to defer the mandatory application date

of AASB 9 to annual reporting periods beginning

on or after 1 January 2018, and to amend

reduced disclosure requirements.

This amending standard will defer the application period of

AASB 9 to the 2018-19 reporting period in accordance with

the transition requirements.

AASB 2014‑7 Amendments to


Standards arising from AASB 9

Amends various AAS's to incorporate the

consequential amendments arising from the

issuance of AASB 9.


impact for the public sector.

AASB 15 Revenue from

Contracts with Customers

The core principle of AASB 15 requires an entity

to recognise revenue when the entity satisfies a

performance obligation by transferring a promised

good or service to a customer. Note that

amending standard AASB 2015-8 Amendments

to Australian Accounting Standards - Effective

Date of AASB 15 has deferred the effective date

of AASB 15 to annual reporting periods beginning

on or after 1 January 2018, instead of 1 January

2017.

The changes in revenue recognition requirements in AASB

15 may result in changes to the timing and amount of

revenue recorded in the financial statements. The

standard will also require additional disclosures on service

revenue and contract modifications.

The assessment has identified the amendments are likely

to result in earlier recognition of impairment losses and at

more regular intervals.

The initial application of AASB 9 is not expected to

significantly impact the financial position however there will

be a change to the way financial instruments are classified

and new disclosure requirements.

AASB 9 Financial Instruments The key changes introduced by AASB 9 include

simplified requirements for the classification and

measurement of financial assets, a new hedge

accounting model and a revised impairment loss

model to recognise expected impairment losses

earlier, as opposed to the current approach that

recognises impairment only when incurred.

Topic Key Requirements Effective date

46



30 June 2018

NOTE 8.8: AASBs ISSUED THAT ARE NOT YET EFFECTIVE (Continued)

01-Jan-18

01-Jan-19

01-Jan-19

01-Jan-19



Standards - Australian

Implementation Guidance for

Not-for-Profit-Entities

AASB 2016-8 inserts Australian requirements and

authoritative implementation guidance for not-for-

profit-entities into AASB 9 and AASB 15.

This Standard amends AASB 9 and AASB 15 to

include requirements to assist not-for-profit

entities in applying the respective standards to

particular transactions and events.

This standard clarifies the application of AASB 15 and

AASB 9 in a not-for-profit context. The areas within these

standards that are amended for not-for-profit application

include:

AASB 9

- Statutory receivables are recognised and measured

similarly to financial assets.

AASB 15

- The "customer" does not need to be the recipient of

goods and/or services;

- The "contract" could include an arrangement entered

into under the direction of another party;

- Contracts are enforceable if they are enforceable by

legal or "equivalent means";

- Contracts do not have to have commercial substance,

only economic substance; and

- Performance obligations need to be "sufficiently specific"

to be able to apply AASB 15 to these transactions.

AASB 16 Leases The key changes introduced by AASB 16 include

the recognition of operating leases (which are

currently not recognised) on balance sheet.

The assessment has indicated that most operating leases,

with the exception of short term and low value leases will

come on to the balance sheet and will be recognised as

right of use assets with a corresponding lease liability. In

the operating statement, the operating lease expense will

be replaced by depreciation expense of the asset and an

interest charge.

There will be no change for lessors as the classification of

operating and finance leases remains unchanged.



Standards - Clarifications to

AASB 15

This Standard amends AASB 15 to clarify the

requirements on identifying performance

obligations, principal versus agent considerations

and the timing of recognising revenue from

granting a licence. The amendments require:

- A promise to transfer to a customer a good or

service that is 'distinct' to be recognised as a

separate performance obligation;

- For items purchased online, the entity is a

principal if it obtains control of the good or service

prior to transferring to the customer; and

- For licences identified as being distinct from

other goods or services in a contract, entities

need to determine whether the licence transfers

to the customer over time (right to use) or at a

point in time (right to access).


impact for the public sector, other than the impact

identified for AASB 15 above.



Standards - Deferral of AASB

15 for Not-for-Profit-Entities

This Standard defers the mandatory effective

date of AASB 15 for not-for-profit-entities from 1

January 2018 to 1 January 2109.

The amending standard will defer the application period of

AASB 15 for not-for-profit entities to the 2019-20 reporting

period.

Topic Key Requirements Effective date Impact on financial statements

47



30 June 2018

NOTE 8.8: AASBs ISSUED THAT ARE NOT YET EFFECTIVE (Continued)

01-Jan-19

The following accounting pronouncements are also issued but not effective for the 2017‑18 reporting period. At this stage, the preliminary

assessment suggests they may have insignificant impacts on public sector reporting.

• AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share‑based Payment Transactions

• AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments with AASB 4 Insurance Contracts

• AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual Improvements 2014-2016

Cycle and Other Amendments

• AASB 2017-3 Amendments to Australian Accounting Standards – Clarifications to AASB 4

• AASB 2017-4 Amendments to Australian Accounting Standards – Uncertainty over Income Tax Treatments

• AASB 2017-5 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 and

Editorial Corrections

• AASB 2017-6 Amendments to Australian Accounting Standards – Prepayment Features with Negative Compensation

• AASB 2017-7 Amendments to Australian Accounting Standards – Long-term Interests in Associates and Joint Ventures

• AASB 2018-1 Amendments to Australian Accounting Standards – Annual Improvements 2015 – 2017 Cycle

• AASB 2018-2 Amendments to Australian Accounting Standards – Plan Amendments, Curtailment or Settlement

NOTE 8.8: EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an

agreement between the Health Service and other parties, the transactions are only recognised when the agreement is irrevocable

at or before the end of the reporting period.

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

period and the date when the financial statements are authorised for issue, where those events provide information about conditions

which existed at the reporting date. Note disclosure is made about events between the end of the reporting period and the date

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

period that are considered to be of material interest.

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

AASB 1058 Income of Not-for-

Profit-Entities

AASB 1058 standard will replace the majority of

income recognition in relation to government

grants and other types of contributions

requirements relating to public sector not-for-

profit entities, previously in AASB 1004

Contributions.

The restructure of administrative arrangement will

remain under AASB 1004 and will be restricted to

government entities and contributions by owners

in a public sector context.

AASB 1058 establishes principles for transactions

that are not within the scope of AASB 15, where

the consideration to acquire an asset is

significantly less than fair value to enable not-for-

profit entities to further their objective.

The current revenue recognition for grants is to recognise

revenue up front upon receipt of the funds.

This may change under AASB 1058, as capital grants for

the construction of assets will need to be deferred.

Income will be recognised over time, upon completion and

satisfaction of performance obligations for assets being

constructed, or income will be recognised at a point in time

for acquisition of assets.

The revenue recognition for operating grants will need to

be analysed to establish whether the requirements under

other applicable standards need to be considered for

recognition of liabilities (which will have the effect of

deferring the income associated with these grants). Only

after that analysis would it be possible to conclude whether

there are any changes to operating grants.

The impact on current revenue recognition of the changes

is the phasing and timing of revenue recorded in the profit

and loss statement.

Topic Key Requirements Effective date Impact on financial statements

48



30 June 2018

NOTE 8.9: JOINTLY CONTROLLED OPERATIONS AND ASSETS

Name of Entity Principal Activity 2018 2017

% %

Hume Rural Health Alliance Information Systems 4.07 4.09

Numurkah District Health Service's interest in assets employed in the above jointly controlled operations and assets is detailed below

The amounts are included in the financial statements and consolidated financial statements under their respective categories:

2018 2017

$'000 $'000

Current Assets

Cash and Cash Equivalents (refer note 6.2) 224 148

Receivables (refer note 5.1) 161 107

Other 3 6

Total Current Assets 388 261

Non Current Assets

Property Plant & Equipment 76 122

Total Non Current Assets 76 122

Total Assets 464 383

Current Liabilities

Payables 20 20

Borrowings 18 27

Total Current Liabilities 38 47

Non Current Liabilities

Borrowings 18 30

Total Non Current Liabilities 18 30

Total Liabilities 56 77

NET ASSETS 408 306

Numurkah District Health Service's interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:

2018 2017

$'000 $'000

Revenues

Operating Activities 333 353

Non-Operating Activities 2 1

Capital Purpose Income 167 164

Total Revenue 502 518

Expenses

Employee Benefits 52 70

Information Technology and Administrative Expenses 230 237

Capital Purpose Expenditure 77 -

Finance Costs 2 2

Depreciation & Amortisation 32 37

Total Expenses 393 346

Net Result 109 172

Commitments for Expenditure

There are no commitments for capital expenditure at the date of this report.

Contingent Liabilities and Capital Commitments

There are no contingencies or capital commitments.

The 2018 figures are based on unaudited financial statements.

Investments in joint operations

In respect of any interest in joint operations, Numurkah District Health Service recognises in the financial statements:

• its assets, including its share of any assets held jointly;

• any liabilities including its share of liabilities that it had incurred;

• its revenue from the sale of its share of the output from the joint operation;

• its share of the revenue from the sale of the output by the operation; and

• its expenses, including its share of any expenses incurred jointly.

Ownership Interest

49



30 June 2018

NOTE 8.10: ALTERNATIVE PRESENTATION OF COMPREHENSIVE OPERATING STATEMENT

2018 2017

$'000 $'000

Grants

Operating 14,641 13,423

Capital 645 445

Interest 532 504

Sales of goods and services 2,569 1,898

Other 3,196 3,631

Revenue from Transactions 21,583 19,901

Employee expenses 13,693 13,079

Depreciation 1,848 1,883

Other operating expenses 6,055 5,578

Expenses from Transactions 21,596 20,540

Net Result From Transactions (13) (639)

Other economic flows included in net result

Net gain/ (loss) on sale of non-financial assets 13 1

Other gains/ (losses) from other economic flows included in net result 58 64

Total Other Economic flows included in Net Result 71 65


Other comprehensive income

Items that will not be reclassified to net result

Changes in physical asset revaluation surplus - 139

Total other comprehensive income - 139

Comprehensive result 58 (435)

NOTE 8.11: ECONOMIC DEPENDENCY

The Health Service is dependent on the Department of Health and Human Services for the majority of its revenue used to operate the entity.

At the date of this report, the Board of Directors has no reason to believe the Department will not continue to support the Health Service.

50

This report was presented to you with the compliments

of the Chairman and Board of

Numurkah District Health Service in appreciation of your interest and support.

Cnr Melville Street & Katamatite Road Numurkah, Victoria 3636

Phone: (03) 5862 0555 Fax: (03) 5862 3404

P.O. Box 128 E: [email protected]

www.ndhs.org.au

http://www.ndhs.org.au/

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