Report of Operations · 4.4 Major Changes & Factors Affecting Achievement of Operational Objectives 6 4.5 Events Occurring After Balance Sheet Date 6 4.6 Consultancies (under $10,000)

1Yarrawonga Health Annual Financial & Performance Report 2011/12

1

Report of Operations 1. Responsible Bodies Declaration 1

2. Reporting Comments 1

2.1 Establishment & Relevant Minister 1

2.2 Objectives, Functions, Powers & Duties 1

2.3 Nature and Range of Services Provided 1

3. Administrative Structure 2

3.1 Board of Management 2

3.2 Advisory & Subcommittees 2

3.3 Auditors 2

3.4 Audit Committee 2

3.5 Bankers 2

3.6 Senior Officers 2

3.7 Departments 2-3

3.8 Workforce Data Disclosures 4

3.9 Organisational Structure 4

3.10 Visiting Medical Officers 5

4. Relevant Financial and Other Information 6

4.1 Summary of Financial Results 6

4.2 Significant Changes in Financial Position 6

4.3 Operational & Budgetary Objectives & Performance Against Objectives 6

4.4 Major Changes & Factors Affecting Achievement of Operational Objectives 6

4.5 Events Occurring After Balance Sheet Date 6

4.6 Consultancies (under $10,000) 6

4.7 Financial Analysis of Operating Revenues and Expenses 7

4.8 Service, Activity and Efficiency Measures 8

4.9 Attestation on Data Accuracy 8

4.10 Revenue Indicators 9

4.11 Outstanding Debtors at 30 June 2012 9

4.12 Occupational Health & Safety Matters 9-10

4.13 Compliance with Building Act 1993 10

4.14 Freedom of Information, Information Privacy & Health Records Acts 10

4.15 Whistleblowers Protection Act 2001 10

4.16 National Competition Policy 10

4.17 Directions of the Minister for Finance / Additional Information 10

4.18 Statement of Merit and Equity 10

4.19 Victorian Industry Participation Policy 10

4.20 Attestation on Compliance with Australian / New Zealand Risk Management

Standard 11

Disclosure Index 12

Table of Contents Financial Statements and Explanatory Notes 13

2 Yarrawonga Health Annual Financial & Performance Report 2011/12

2

1. Responsible Bodies Declaration

2. Reporting Comments

2.1 Establishment & Relevant

Minister Yarrawonga District Health Service is

incorporated as a public hospital under the

Health Services Act 1988, and came into operation on the 1 July 1999 through the

amalgamation of three independent

organisations:

• Yarrawonga District Hospital; • Yarrawonga Nursing Home Inc.; and

• Yarrawonga Community Health Centre

Inc.

The Minister for Health approved the name

change of Yarrawonga District Health Service to Yarrawonga Health – this was

gazetted on 22nd September 2011.

Yarrawonga Health is established under the

Health Services Act 1988 and the responsible Minister during the reporting

period is the Honourable David Davis, MP.

2.2 Objectives, Functions, Powers &

Duties Objectives, Functions, Powers and Duties of Yarrawonga Health are described in the By-

laws and Statement of Rules of the

organisation.

2.3 Nature & Range of Services

Provided Yarrawonga Health consists of 26 Acute

beds, 30 High Care Residential Aged Care beds, 30 Dementia Specific Hostel beds and

28 low care Residential Aged Care beds, all located on the same site, with an adjacent

Community Health Centre.

Home Nursing is also provided by the

District Nursing Service, and supply of Meals

on Wheels by our Catering Department in partnership with the Moira Healthcare

Alliance.

The acute hospital services include

medical/surgical services, low risk obstetric services, lactation and parenting support

services, paediatric, dialysis and emergency

services.

Yarrawonga Health is fortunate to have

medical services provided by two General Practice Clinics in Yarrawonga. In addition,

Specialist Consultants visit the Hospital on a

regular scheduled basis broadening the range of medical services provided to the

community.

A wide range of community services are on

offer through the Yarrawonga Health Community Health Centre. These include

Community Nursing, Allied Health

(Occupational Therapy, Physiotherapy, Speech Pathology, Dietetics and Podiatry),


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Welfare, Counselling and Housing Support,

and Health Education and Promotion.

Yarrawonga Health services the people of

Yarrawonga and surrounding areas of

Mulwala, Bundalong and Tungamah which have a combined catchment population of

13,527 people.

3. Administrative Structure

3.1 Board of Management Yarrawonga Health Board of Management members are appointed for a two to three

year term by the Governor-in-Council, upon

the recommendation of the Minister for Health.

There are 11 Board of Management

positions. As of 30 June 2012, membership comprised of:

Chair

Mrs M Hauser, RN, RM, BApplSc (NAdmin)

Senior Vice-Chair

Dr J Charles, BDSc (Melb), LDS (Vic)

Junior Vice-Chair Mrs J Dight, RN, GradDip Nursing (Palliative

Care)

Treasurer

Mr B Pigdon

Members

Mrs P Boucher, TITC Mr E D Evans, JP

Mr B Miller, Bus Cert Banking & Finance

Mr G Nowacki, BEd, GradDipEduc, Admin

FACE

Mr G Page, B. App Sc(Chemistry), DipEd,

Diploma Financial Planning.

Mr A Spilva, LLB

Mr J Sterkenburg, Dip CE

3.2 Advisory & Sub-Committees There are a number of Advisory and Sub-Committees reporting to the Board as

follows:

• Finance • Audit • Patient Care & Quality • Community & Cultural Advisory • Medical Appointments • Planning

3.3 Auditors WHK (Agents for Auditor General Victoria)

3.4 Audit Committee Mrs M Hauser (Chair Board of Management)

Mr B Pigdon (Treasurer Finance Committee) Mr G Nowacki (Board Member)

Mr R Besley (External Member)

Mr J Smith (External Member)

In Attendance

Mr T Welch (Chief Executive Officer)

Ms D Urban (Finance Manager) - Ceased

employment 31/8/11 Mr R Moore – from 1/9/11

3.5 Bankers National Australia Bank

3.6 Senior Officers Principle senior officers are listed below.

Areas of responsibility of these officers are

described in the organisational chart at 3.9

Executive Management

Chief Executive Officer

Mr T Welch, MBA, BApplSc (Nursing), Certificate

of Coronary Care, GradDip Health Service

Management, MRNCA, GAICD

Director of Clinical Services Mrs E Mallows, RN, RM, MPH

Director of Medical Services Dr J Best, AO, MD, PhD, Hon DSc, FAFPHM, FRACMA,

FRACP (Hon), FACRRM (Hon), FAMA

Senior Management

Finance Manager Ms D Urban, MBA, GradDip (IT), BBus(Acc),

CPA, AHSFM - Ceased employment 31/8/11

Mr R Moore, BBus(Acc), CPA – from 1/9/11

Hotel Services Mrs J Torpy – Hotel Services Manager – until

30/3/12

Mrs J Hore – Catering Services Manager – from

15/3/12

Mrs J Duncan – Domestic Services Manager – from

23/2/12

Facilities Manager Mr J Flanagan

Corporate Services Manager Mrs M Murfitt, Cert 3 Bus


4

3.7 Departments Allied & Community Health

Community Health Program Manager

Mrs J Ware, DipWelfare Studies, DipSystems

Theory & Family Therapy, PGCert Mens

Behaviour Change Group

Allied Health Assistant & Foot Care Nurse

Ms C Partington, EN, Diversional Therapist, Cert

IV Allied health

Foot Care Nurse Mrs D Campbell, EN

Community Health Nurse, Child, Youth &

Family

Ms K Cummins, RN, BNursing, PGDip Health

Promotion

Health & Wellbeing Facilitator/Diabetes Educator

Mrs S Freeman, RN, BA Nursing, Grad Cert

Critical Care, Grad Cert Diabetes

Dietetics Ms L Williams, BA Health Science (Nutrition &

Dietetics)

Generalist Counselling/Welfare Leader

Ms V O’Donnell, BA Social Work

Housing Support Ms R O’Connor, Dip Welfare Studies

Occupational Therapy Mrs J Buerckner, BAOcc Therapy

Ms K Bourke, BHealth Science (OT)

Physiotherapy

Mr A O'Donnell (NE Physiotherapy Service) Ms E Gray, BASc (Physio)

Podiatry Ms L Whinray, BAHealthSc (Pod)

Radiography Mrs P Thomas, BAppSc (MedRad), DipMU

Speech Pathologist Ms O Komadina, BAHealth Sc (SpPath)

Youth Worker

Ms R I’Anson, BACriminal Justice

Administration

Intake Worker

Ms J Sweeting, BASpPath

Ms K Chant, BA Social Work, AssDipWelfare

Community Health Centre

Administration

Mrs D Poll Ms K Kennedy

Residential Aged Care

ADON Residential Care Services

Mrs K Andrews, RN, BA Health Science

(Nursing)

MRH, Cert IV Training & Assessment

Unit Managers Allawah Hostel: Ms G Duncan, RN

Warrina Hostel: Mrs J Towt, RN

Karana: Ms C Bell, RN

Nursing ADON Clinical Support Manager Mrs R Clifton, RN, BA Nursing, Cert IV

Training & Assessment

Unit Managers/Coordinators

General: Mrs J Purchase, RN

Maternity: Mrs E Thorp, RN

Operating Suite: Ms Y Saunders, RN District Nurses: Mrs S Robinson, RN, BA Nursing

Mrs B Young, RN, Stomaltherapy Nurse

Administration & Support Services Key Positions

Quality Coordinator Mrs F Stevens, RN, Diversional Therapist

Occupational Health & Safety

Coordinator

Ms L Bowman

Grants Officer

Ms P Nagle, BASci(medical); GradDip

Management

Executive Assistant Mrs J Sonneman

Executive Assistant – M2M Program Mrs W Ralph

Discharge Planner/Privacy Officer

Mrs C Febey

Health Information Manager

Ms L Jones, AssocDipMRA

Pharmacist

Acute Services - Pharmacy On Belmore Residential Aged Care - Terry White

Pharmacy


5

3.8 Workforce Data Disclosures including Statement on the application of

employment and conduct principles The following table represents actual staff employed within the Health Service at 30 June 2012.

Yarrawonga Health has policies and procedures in place to promote a high standard of

employment and conduct principles. These include policies on employment and HR practices, and are complemented by a Code of Conduct which provides more detailed guidance on the

rights, responsibilities, accountabilities and delegations as well as matters of ethics and

transparency expected of employees and representatives of the Health Service. The Health Service operates a Human Resources Committee which develops, reviews and monitors

policies and procedures in relation to Human Resource matters including processes for appointment and selection. The Health Service upholds and adheres to the Code of Conduct of

Public Sector Employees issued by the Public Sector Standard Commissioner made under the

Public Administration Act 2004.

3.9 Organisational Structure

Labour Category June

Current Month

FTE

Nursing 70.79

Administration and Clerical 13.57

Hotel and Allied Services 58.10

Ancillary Support (Allied Health) 8.33

TOTAL 150.79

CHIEF EXECUTIVE OFFICER Terry Welch

DIRECTOR OF CLINICAL

SERVICES

Elaine Mallows

ACUTE SERVICES COMMUNITY AND ALLIED HEALTH

CLINICAL

COORDINATOR

MATERNITY SERVICES

Eileen Thorp

OPERATING SUITE NUM

Yvette Saunders

COMMUNITY HEALTH PROGRAM MANAGER

Joy Ware

PHARMACY SERVICES

Terry White Chemist

ACUTE SERVICES NUM

Jennifer Purchase

ADON CLINICAL SUPPORT MANAGER

Ruth Clifton

Infection Control

Coordinator

ACTING ADON RESIDENTIAL CARE

SERVICES Kristine Andrews

KARANA

NUM

Cheryl Bell

ALLAWAH HOSTEL

NUM

Gaye Duncan

WARRINA HOSTEL

NUM Judy Towt

Grade 5 Coordinators

CORPORATE SERVICES MANAGER

Melissa Murfitt

MAINTENANCE SUPERVISOR

James Flanagan

DIRECTOR OF MEDICAL SERVICES

Dr John Best

Catering Services Supervisor Domestic Services Supervisor

Reception / Administration / Supply / Payroll/ Personnel / WorkCover

Information Technology Fleet Management

Maintenance / Safety Officer / Waste Management

DNS NUMs Bernie Young/

Sharon Robinson

ACTING QUALITY COORDINATOR Fiona Stevens

HEALTH INFORMATION MANAGER

Lucinda Jones

OH&S COORDINATOR Leonie Bowman

DIALYSIS Melissa Moat

EMERGENCY DEPARTMENT

M2M INTERN

PROGRAM ADMIN

Wendy Ralph

EXECUTIVE ASSISTANT CEO/DCS

Jennifer Sonneman

FINANCIAL SERVICES

Northeast Health Wangaratta


6

3.10 Visiting Medical Officers General Practitioners

Dr K Abraham, MBBS

Dr S Akbar, MBBS

Dr P De Silva, MBBS

Dr J Emery, MBBS, Dip (Obst), RCOG Dr A Galebole, MBBS

Dr T Jones, MBBS, FRACGP, DRANZCOG

Dr P Keppel, MBBS, FRACGP, DipObs,

RACOG, DA, FACRRM, DipFamMed

Dr K Lynn, MBBS

Dr N Murray, MBBS, FRACGP, GradDip Rural

Health

Dr M Ooruthiran, MBBS

Dr S Sawdagar, MBBS

Dr E Yap, MBBS

Dr K Aung, MBBS

Dr F Cai, MB

Dr R Colvin, MBBS

Dr M Gould, MBBS, DRANZCOG, FRACGP

Dr R Huq, MBBS

Dr C Ronan, MBBS, DA, DRANZCOG

Consultant Surgeons Mr Neil Bright, MBBS, FRACS

Dr Mark Landy, MBBS, FRACS

Consultant Physicians

Dr Les Bolitho, MBBS, FRACP

Dr Andreas Baisch, FRACP

Consultant Obstetricians & Gynaecologists

Dr Colin Pearse, MBBS, FRANZCOG

Dr Judith Krones

Consultant Orthopaedic Surgeons Mr Richard Kjar, MBBS, FRACS (Ortho)

Consultant Urologist Mr Jonathon Lewin, MBBS, FRCS

Consultant Paediatricians

Dr Peter Dewez, MBBS, FRACP(Gen Paeds)

Dr Terry Stubberfield, MBBS

Consultant Radiologist

Dr S Rajapakse, MBBS, FRANZCR

Dr Stephen Williams, MBBS, FRANZCR

Dr Mark Stebnyckyj, MBBS, FRANZCR

Pathologist

Healthscope Pathology Service


7

4. Relevant Financial and Other Information

4.1 Summary of Financial Results

4.2 Significant Changes in Financial Position The net result for the year was a deficit $1,661K after capital items including depreciation of

$1,914K. The significant events that affected the overall result in the 2011/12 financial year were a reduction in DVA inpatient activity resulting in reduced grant revenue that could be

reported as income.

4.3 Operational & Budgetary Objectives & Performance Against Objectives The organisation budgeted for a break even result before capital items and depreciation for the

2011/12 financial year. The final result was an operating deficit of $220k . The organisation and the Department of Health (DoH) both focus on the result before capital and depreciation,

as depreciation is not a funded item.

The variance between actual and budgeted result was mainly due to the reduction in DVA

activity against budget and compared to the previous year.

The organisation through its Business Efficiency Programs is continuing to analyse, monitor

and attempt to improve its financial position. We will continue to monitor and seek to achieve further and ongoing improvements in the overall financial position while maintaining quality

service delivery.

4.4 Major Changes & Factors Affecting Achievement of Operational Objectives There were no major changes or factors that materially or significantly affected achievement of

Operational Objectives.

4.5 Events Occurring After Balance Sheet Date There were no events at the date of this report that may have a significant effect on the

operations of Yarrawonga Health in subsequent years.

4.6 Consultancies (under $10,000) In 2012-13 the health service engaged 7 consultancies where the total fees payable to the consultants were less than $10,000, with a total expenditure of $23,191 (excl. GST).

2011/2012

$100’s 2010/2011

$000's 2009/2010

$000's 2008/2009

$000's 2007/2008

$000's

Total Revenue 15,594 15,642 14,339 13,950 13,604

Total Expenses 15,814 15,497 14,472 13,557 13,298

Operating Surplus (Deficit) (220) 145 (133) 393 306

Retained Surplus / (Accumulated Deficit)

(3,954) (2,294) (1,463) 223 215

Total Assets 30,970 31,625 31,382 32,383 26,930

Total Liabilities 11,317 10,312 9,279 8,645 8,748

Net Assets 19,653 21,313 22,103 23,738 18,182

Total Equity 19,653 21,313 22,103 23,738 18,182


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4.7 Financial Analysis of Operating Revenues and Expenses

2012 $000

2011 $000

REVENUES

SERVICES SUPPORTED BY HEALTH SERVICES

AGREEMENT

Government Grants 9,015 9,090 Indirect Contributions by Human Services 97 367

Commonwealth Government-Residential Aged Care 3,305 3,242

Patient Fees (Incl Residential Accommodation Payments) 2,079 2,013 Donations & Bequests 41 188

Other Revenue 459 289

14,996 15,189

SERVICES SUPPORTED BY HOSPITAL & COMMUNITY

INITIATIVES

Business Units 161 314 Interest 437 139

598 453

15,594 15,642

EXPENSES

SERVICES SUPPORTED BY HEALTH SERVICES

AGREEMENT

Employee Entitlements 11,858 11,463

Fee for Service Medical Officers 534 568

External Contract Staff 245 168 Supplies & Consumables 896 885

Other Expenses 2,194 2,189

15,727 15,273

SERVICES SUPPORTED BY HOSPITAL & COMMUNITY

INITIATIVES

Employee Entitlements 23 52 External Contract Staff 62 159

Supplies & Consumables - 5

Other Expenses 2 8

87 224

15,814 15,497

SURPLUS/(DEFICIT) FOR THE YEAR BEFORE

CAPITAL PURPOSE INCOME, DEPRECIATION, AMORTISATION AND SPECIFIC REVENUES AND

EXPENSES

(220) 145

Capital Purpose Income 448 1,038 Net Gain/(Loss) from Disposal of Non-current assets 25 (117)

Depreciation and Amortisation (1,914) (1,897)

Specific Expenses - -

(1,441) (976)

NET SURPLUS /(DEFICIT) (1,661) (831)


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4.8 Service, Activity and Efficiency Measures

Service Level The population in the Yarrawonga/Mulwala Catchment is approximately 12,500, however a major increase in population to 25,000 generally occurs during the Easter and Summer holiday

periods.

Activity

ACUTE NURSING HOME TYPE

2011/12 2010/11 2011/12 2010/11

Admitted Patients

Same Day Separations 2,240 1,896

Multi Day Separations 963 1,095

Total Separations 3,303 3,001 2 3

Same Day Emergency 54 56

Same Day Elective 2,174 1,835

Same Day Other 5 5

Total Same Day Separations 2,240 1,896

Total Births 94 77

Total WIES 1,181 1,185

Total Bed Days 6,745 6,504 38 66

Non Admitted Patients

Emergency Department Presentations 2,555 2,535

4.9 Attestation on Data Integrity


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4.10 Revenue Indicators

Average Collection Days 2011/2012 2010/2011

Private Inpatient Fees 176 127

TAC - -

VWA Inpatient Fees 30 166

Other Compensable - -

Nursing Home Type Fees - -

TOTAL 206 293

4.11 Debtors Outstanding Debtors at 30 June 2012

Under 30 Days

31 to 60 Days

61 to 90 Days

Over 90 Days

Total 30/06/12

Total 30/06/11

Private Inpatient Fees

89,172 21,266 52,791 128,075 291,304 142,311

VWA Inpatient Fees 7,115 - - - 7,115 3,902

Nursing Home Type Fees

- - - - - -

TOTAL 247,947 19,082 79,004 84,535 430,568 146,213

ABBREVIATIONS: VWA - Victorian WorkCover Authority

TAC – Transport Accident Commission

4.12 Occupational Health & Safety Matters Yarrawonga Health attaches a high priority to the safety and wellbeing of its employees and is committed to facilitating an organizational culture that actively seeks to improve work

practices and to foster attitudes which sustain healthy and safe work environments, whilst

aiming to ensure the safety of its workforce, contractors, volunteers, the public and others who are on its premises.

The organization’s Occupational Health & Safety Management Systems provide the structural

framework within which OHS is managed and includes the responsibilities of management,

supervisors, employees and their representatives and promotes the integration of early intervention and prevention strategies in incident reporting, injury management, hazard and

risk identification and control into day-to-day business.

Key elements of our approach to workplace health, safety and wellbeing include an

increase in staff training and awareness in identifying and recognizing –

• safe work practices as an integral part of business and workplace culture;

• effective prevention programs; • major health and safety risks and strategies for mitigating these risks with an emphasis

on the importance of appropriate consultation.


11

A strong focus on reducing manual handling injuries and risks remains a priority and has been

maintained through staff training and consultation in trialling & evaluating equipment.

Educational KPI’s have been met with 95% of staff completing Mandatory Fire, Evacuation &

Emergency Procedures training, OH&S and Manual Handling/ No Lift assessments. Mock drills have also been undertaken in each department

Initiatives/Outcomes

• Emergency Management

The 2011-12 year saw a focus on Emergency Management with the development of the Business Continuity Plan tested during an activation of the Code Brown External Disaster

Management Plan initiated due to a severe weather event which saw widespread flooding across the region. During the debriefing, a small number of minor issues were identified and an

action plan developed accordingly to streamline and improve the roles of key personnel. A

major concern was the lack of a dedicated Emergency Control Centre which has now been determined.

• Health and Wellbeing Yarrawonga Health is committed to promoting the health and wellbeing of its employees and

recognizes that workplace-based health and wellbeing programs positively contribute to

morale, resilience and productivity by reducing workforce absence, illness, and workplace injury. This year in conjunction with WorkSafe Victoria we offered & encouraged all employees

to undertake a free health check which has seen almost 50% of employees attend.

• Auditing

A number of external reviews and audits of Yarrawonga Health’s safety culture, OHS and Risk management systems have been undertaken during the year conducted by such bodies as

VMIA, ACHS EQuIP assessors (during the periodic review), Residential Aged Care surveyors

(during the accreditation process) and AON Hewitt (HR consultants) focusing on the business, operational and financial aspects of safety and workers’ compensation management including

injury, claims and insurer management. No major recommendations have been made during

the findings but as with all systems improvements can be made which demonstrate best practice in management and performance.

Yarrawonga Health acknowledges that improvement of workplace safety standards is best achieved through consultation, participation and training and will continue to endeavour to

improve its performance in compliance with all relevant industry codes, legislation and standards.

4.13 Compliance with Building and Maintenance Provisions of the Building

Act 1993 The Minister for Finance has issued instructions in accordance with the Building Act 1993

stating that all public entities are to ensure that buildings under their control are: safe and fit for occupation, comply with statutory requirements and are maintained to a standard where

they remain fit for occupancy.

Yarrawonga Health reports annually on the measures taken to comply with the provision of the

Act.

4.14 Freedom of Information, Information Privacy & Health Records Acts The Freedom of Information Act 1982, Information Privacy Act 2000 and Health Records Act

2001 provides for members of the public access to their medical records for the purpose of viewing, amending incorrect notations or copying parts of the record. During the year there

were 36 requests of Yarrawonga Health under the Act.

4.15 Whistleblowers Protection Act 2001 Yarrawonga Health has policies and procedures in place to enable total compliance with the Whistleblowers Protection Act. The Chief Executive Officer has been appointed as the

‘Protected Disclosure Coordinator’ to manage the process. During the 2011/2012 Financial

Year Yarrawonga Health had no disclosures made under this Act.


12

4.16 National Competition Policy The Health Service complies with all government policies regarding competitive neutrality in regard to tender applications.

4.17 Directions of the Minister for Finance / Additional Information In compliance with the requirements of the Standing Directions for the Minister of Finance,

additional information is available to relevant Ministers, Members of Parliament and the public

on request (subject to Freedom of Information Requirements, if applicable).

4.18 Statement of Merit and Equity Yarrawonga Health is committed to the application of the public sector employment principles. It has reviewed employment processes to ensure that employment decisions are based on

merit, employees are treated fairly and reasonably, equal employment opportunities are provided and employees have a reasonable avenue of redress against unfair or unreasonable

treatment.

4.19 Victorian Industry Participation Policy

Yarrawonga Health abides by the principles of the Victoria Industry Participation Policy. This

applies to all tenders in regional Victoria over $1 million. The Department of Health (DoH) Capital Management Branch reports VIPP Disclosures for those projects managed by DoH. In

2011/2012 there were no contracts commenced or completed that were managed by the

Health Service to which this Act applied.

4.20 Attestation on Compliance with Australian/New Zealand Risk

Management Standard


13

DISCLOSURE INDEX

The annual report of Yarrawonga Health 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

MINISTERIAL DIRECTIONS

Report of Operations

Charter & Purpose

FRD 22C Manner of Establishment and Relevant Minister 1 FRD 22C Objectives, Functions, Powers and Duties 1

FRD 22C Nature and Range of Services Provided 1

Management and Structure

FRD 22B Organisational Structure 4

Financial & Other Information FRD 10 Disclosure Index 12

FRD 11 Disclosure of ex-gratia payments n/a FRD 15B Executive Officer Disclosures 69

FRD 21B Responsible person and executive officer disclosures 68,69 FRD 22C Application and Operation of Freedom of Information Act 1982 10

FRD 22C Application and Operation of Whistleblowers Protection Act 2001 10

FRD 22C Compliance with Building and Maintenance Provisions of the Building Act 1993 10 FRD 22C Details of Consultancies under $10,000 6

FRD 22C Major Changes or Factors Affecting Performance 6 FRD 22C Occupational Health and Safety 9-10

FRD 22C Operational and Budgetary Objectives and Performance Against Objectives 6

FRD 22C Significant Changes in Financial Position during the Year 6 FRD 22C Statement of availability of other information 10

FRD 22C Statement on National Competition Policy 10 FRD 22C Subsequent Events 6

FRD 22C Summary of the Financial Results for the Year 6 FRD 22C Workforce Data Disclosures including a statement on the application of

employment and conduct principles 4

FRD 25 Victorian Industry Participation Policy disclosures 10 SD 4.2(j) Sign-off requirements 1

SD 3.4.13 Attestation on Data Integrity 14 SD 4.5.5 Attestation on Compliance with Australian / New Zealand Risk

Management Standard 11

FINANCIAL STATEMENTS

Financial Statements Required under Part 7 of the Financial Management Act SD 4.2(a) Statement of Changes in Equity 19

SD 4.2(b) Operating Statement 17 SD 4.2(b) Balance Sheet 18

SD 4.2(b) Cash Flow Statement 20

Other requirements under Standing Directions 4.2

SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements 21

SD 4.2(c) Accountable Officer’s Declaration 14 SD 4.2(c) Compliance with Ministerial Directions 21

SD 4.2(d) Rounding of Amounts 36

LEGISLATION

Freedom of Information Act 1982 10 Whistleblowers Protection Act 2001 10

Victorian Industry Participation Policy Act 2003 10 Building Act 1993 10

Financial Management Act 1994 21


14

Financial Statements and Explanatory Notes

Accountable Officer’s, Chief Finance & Accounting Officer’s & Member of Responsible Body’s

Declaration 14

Auditor-General's Report 15-16

Operating Statement 17

Balance Sheet 18

Statement of Changes in Equity 19

Cash Flow Statement 20

Notes to and Forming Part of the Financial Statements:

Table of Contents

1 Statement of Significant Account Policies 21-40

2 Revenue 41

2a Analysis of Revenue by Source 42-43

2b Patient and Resident Fees 44

2c Net Gain / (Loss) on Disposal of Non-Financial Assets 44

3 Expenses 45

3a Analysis of Expenses by Source 46-47

3b Analysis of Expenses by Internal and Restricted Specific Purpose Funds

Supported by Hospital and Community Initiatives 48

3c Specific Expenses 48

4 Depreciation and Amortisation 48

5 Cash and Cash Equivalents 49

6 Receivables 49

7 Investments and other Financial Assets 50

8 Inventories 50

9 Other Assets 50

10 Property, Plant & Equipment 51-52

11 Payables 53

12 Provisions 53

13 Other Liabilities 54

14 Reserves 54

15 Reconciliation of Net Result for the Year to Net cash Inflow / (Outflow)

from Operating Activities 55

16 Financial Instruments 56-63

17 Commitments for Expenditure 64

18 Operating Segments 65-66

19 Jointly Controlled Operations and Assets 67

20a Responsible Persons Disclosures 68

20b Executive Officer Disclosures 69


15

Board Member’s, accountable officer’s and chief

finance & accounting officer’s declaration




18

Yarrawonga Health

Note 2012 2011

$'000 $'000

Revenue from Operating Activities 2 15,157 15,503

Revenue from Non-Operating Activities 2 437 139

Employee Expenses 3 (11,881) (11,515)

Non Salary Labour Costs 3 (841) (895)

Supplies & Consumables 3 (896) (890)

Other Expenses 3 (2,196) (2,197)

Net Result Before Capital & Specific Items (220) 145

Capital Purpose Income 2 473 921

Depreciation 4 (1,914) (1,897)

NET RESULT FOR THE YEAR (1,661) (831)

Other comprehensive income

Net fair value gains/(losses) on Available for Sale

Financial Assets - 133

Write-off impairment on demolition of building to

revaluation surplus - (92)

COMPREHENSIVE RESULT FOR THE YEAR (1,661) (790)

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

Comprehensive operating statement

For the year ended 30 June 2012


19

Yarrawonga Health

Note 2012 2011$'000 $'000

Current Assets

Cash and Cash Equivalents 5 683 437

Receivables 6 685 997

Investments and Other Financial Assets 7 7,142 6,386

Inventories 8 53 40

Other Current Assets 9 31 167

Total Current Assets 8,594 8,027

Non-Current Assets

Receivables 6 639 565

Property, Plant & Equipment 10 21,737 23,033

Total Non-Current Assets 22,376 23,598

TOTAL ASSETS 30,970 31,625

Current Liabilities

Payables 11 1,000 1,033

Provisions 12 3,408 3,245

Other Liabilities 13 6,594 5,646

Total Current Liabilities 11,002 9,924

Non-Current Liabilities

Provisions 12 315 388

Total Non-Current Liabilities 315 388

TOTAL LIABILITIESTOTAL LIABILITIES 11,317 10,312

NET ASSETS 19,653 21,313

EQUITY

Property, Plant & Equipment Revaluation Surplus 14a 7,019 7,019

Contributed Capital 14b 16,588 16,588

Accumulated Surpluses/(Deficits) 14c (3,954) (2,294)

TOTAL EQUITY 14 19,653 21,313

Commitments for Expenditure 17


Balance sheet

As at 30 June 2012


20

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Yarrawonga Health

Note 2012 2011

$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 12,810 12,030

Patient and Resident Fees Received 2,027 2,220

Donations and Bequests Received 41 188

GST Received from/(paid to) ATO 277 (37)

Recoupment from private practice for use of hospital

facilities - 26

Interest Received 438 102

Dividend Received - 37

Other Receipts 581 569

Employee Expenses Paid (11,791) (10,911)

Non Salary Labour Costs (534) (568)

Payments for Supplies & Consumables (941) (1,246)

External Contractor costs (262) (326)

Other Payments (2,443) (1,416)

Cash Generated from Operations 203 668

Capital Grants from Government 431 27

Capital Grants from Non-Government 17 707

Capital Interest & DividendsCapital Interest & Dividends - 304

NET CASH INFLOW/(OUTFLOW) FROM NET CASH INFLOW/(OUTFLOW) FROM

OPERATING ACTIVITIESOPERATING ACTIVITIES15

651 1,706

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Non-Financial Assets (708) (1,608)

Proceeds from Sale of Non-Financial Assets 114 76

Proceeds from Sale of Investments 189 3,127

Purchase of Investments - (3,852)

NET CASH INFLOW/(OUTFLOW) FROM

INVESTING ACTIVITIES (405) (2,257)

CASH FLOWS FROM FINANCING ACTIVITIES

Contributed Capital from Government - -

NET CASH INFLOW/OUTFLOW FROM

FINANCING ACTIVITIES - -

NET INCREASE/(DECREASE) IN CASH & CASH

EQUIVALENTS HELD 246 (551)

CASH AND CASH EQUIVALENTS AT BEGINNING OF

YEAR 437 988

CASH AND CASH EQUIVALENTS AT END OF YEAR5 683 437


Cash flow statement

For the year ended 30 June 2012


YARRAWONGA HEALTH

Notes the Financial Statements 30 June 2012

22

Note 1: Statement of Significant Accounting Policies

(a) Statement of Compliance

These financial statements are a general purpose financial report which have been prepared

in accordance with the Financial Management Act 1994 and applicable Australian Accounting

Standards (AASs) issued by the Australian Accounting Standards Board (AASB).

The financial statements also comply with relevant Financial Reporting Directions (FRDs)

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

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

paragraphs applicable to “not-for-profit” Health Services under the AASs.

The annual financial statements were authorised for issue by the Board of Yarrawonga Health

on 31 August 2012.

(b) Basis of accounting preparation and measurement

Accounting policies are selected and applied in a manner which ensures that the resulting

financial information satisfies the concepts of relevance and reliability, thereby ensuring that

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

The accounting policies set out below have been applied in preparing the financial statements

for the year ended 30 June 2012, and the comparative information presented in these financial statements for the year ended 30 June 2011.

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

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

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

liabilities, equity, income or expenses when they satisfy the definitions and recognition

criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

The financial statements are prepared in accordance with the historical cost convention, except for the revaluation of certain non-financial assets and financial instruments, as noted.

Particularly, exceptions to the historical cost convention include:

• Non-current physical assets, which subsequent to acquisition, are measured at valuation and are re-assessed with sufficient regularity to ensure that the carrying amounts do not

materially differ from their fair values;

• Derivative financial instruments, managed investment schemes, certain debt securities, and investment properties after initial recognition, which are measured at fair value

through profit and loss; and

• Available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised.

• The fair value of assets other than land is generally based on their depreciated

replacement value.

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


YARRAWONGA HEALTH


23

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

assumptions about carrying values of assets and liabilities that are not readily apparent from

other sources. The estimates and associated assumptions are based on personal judgements derived from historical experience and various other factors that are believed to be

reasonable under the circumstances. Actual results may differ from these estimates.

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

accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision, and future periods if the

revision affects both current and future periods. Judgements made by management in the

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

• the fair value of land, buildings, infrastructure, plant and equipment (refer to Note

1(j);

• actuarial assumptions for employee benefit provisions based on likely tenure of

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

(c) Reporting entity

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

Its principal address is:

33 Piper Street Yarrawonga,

Victoria, 3730

A description of the nature of Yarrawonga Health’s operations and its principal activities is

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

(d) Principles of Consolidation

Jointly controlled assets or operations

Interests in jointly controlled assets or operations are not consolidated by

Yarrawonga Health, but are accounted for in accordance with the policy outlined in

Note1(i) Financial Assets.

(e) Scope and presentation of financial statements

Fund Accounting

Yarrawonga Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. Yarrawonga Health’s Capital and Specific

Purpose Funds include unspent capital donations and receipts from fund-raising activities

conducted solely in respect of these funds.

Services Supported By Health Services Agreement and Services Supported By

Hospital and Community Initiatives

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

substantially funded by the Department of Health and includes Residential Aged Care Services (RACS) which are also funded from other sources such as the Commonwealth,

patients and residents, while Services Supported by Hospital and Community Initiatives


YARRAWONGA HEALTH


24

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

Commonwealth.

Residential Aged Care Services

Karana Nursing Home, Allawah Hostel and Warrina Hostel Residential Aged Care Service

operations are an integral part of Yarrawonga Health and shares its resources. An

apportionment of land and buildings has been made based on floor space. The results of these operations have been segregated based on actual revenue earned and expenditure

incurred by each operation in Note 2b to the financial statements.

Yarrawonga Health’s three Residential Aged Care Services are substantially funded from

Commonwealth bed-day subsidies.

Comprehensive operating statement

The Comprehensive operating statement includes the subtotal entitled ‘Net Result Before

Capital & Specific Items’ to enhance the understanding of the financial performance of

Yarrawonga Health. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, expenditure using capital purpose

income and items of an unusual nature and amount such as specific income and expenses.

The exclusion of these items is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public

Health Services. The ‘Net result Before Capital & Specific Items’ is used by the management

of Yarrawonga Health, the Department of Health and the Victorian Government to measure the ongoing performance of Health Services in operating hospital services.

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

Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works or plant and

equipment. It also includes donations of plant and equipment (refer Note 1 (f)).

Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.

Impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), which have been recognised in accordance with

Note 1 (i) and (h).

Depreciation, as described in Note 1 (g).

Assets provided or received free of charge (refer to Note 1 (f)).

Expenditure using capital purpose income, comprises expenditure which either falls below the asset capitalisation threshold or doesn’t meet asset recognition criteria and therefore

does not result in the recognition of an asset in the balance sheet, where funding for that

expenditure is from capital purpose income.

Balance sheet

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

Statement of changes in equity

The statement of changes in equity presents reconciliations of each non-owner and owner equity opening balance at the beginning of the reporting period to the closing balance at the

end of the reporting period. It also shows separately changes due to amounts recognised in

the comprehensive result and amounts recognised in other comprehensive income related to other non-owner changes in equity.


YARRAWONGA HEALTH


25

Cash flow statement

Cash flows are classified according to whether or not they arise from operating activities,

investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.

Comparative Information

There was no reclassification of prior year amounts required for comparative purposes.

(f) Income Recognition Income is recognised in accordance with AASB 118 Revenue and is recognised as to the

extent that it is probable that the economic benefits will flow to Yarrawonga Health and the

income can be reliably measured. Unearned income at reporting date is reported as income received in advance.

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

and taxes.

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

owners)

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

income (other than contributions by owners) are recognised as income when the Health

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

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

Indirect Contributions from the Department of Health

– Insurance is recognised as revenue following advice from the Department of Health. – Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL

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

Services Division Hospital Circular 14/2009.

Patient and Resident Fees

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

Private Practice Fees

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

Donations and Other Bequests

Donations and bequests are recognised as revenue when received. If donations are for a

special purpose, they may be appropriated to a surplus, such as the specific restricted

purpose surplus.

Dividend Revenue

Dividend revenue is recognised when the right to receive payment is established.


YARRAWONGA HEALTH


26

Interest Revenue

Interest revenue is recognised on a time proportionate basis that takes in account the

effective yield of the financial asset.

Sale of investments

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

Resources Received Free of Charge or for Nominal Consideration

Resources received free of charge or for nominal consideration are recognised at their fair

value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another

Health Service or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying value.

Contributions in the form of services are only recognised when a fair value can be reliably

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

(g) Expense Recognition

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

relate.

Cost of Goods Sold

Costs of goods sold are recognised when the sale of an item occurs by transferring the cost

or value of the item/s from inventories.

Employee expenses

Employee expenses include:

• Wages and salaries;

• Annual leave;

• Sick leave;

• Long service leave; and• Superannuation expenses which are reported differently depending upon whether employees are members of defined benefit or defined contribution plans.

Defined contribution superannuation plans

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

expense is simply the employer contributions that are paid or payable in respect of

employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

Defined benefit superannuation plans

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

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

reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based on actuarial advice.

Employees of Yarrawonga Health are entitled to receive superannuation benefits and Yarrawonga Health contributes to both the defined benefit and defined contribution plans.

The defined benefit plan provides benefits based on years of service and final average salary.


YARRAWONGA HEALTH


27

The name and details of the major employee superannuation funds and contributions

Made by the Yarrawonga Health are as follows:

Contributions Paid or Payable for the year

Fund

2012 2011

$’000 $’000

Defined benefit plans:

Health Superannuation Pty Ltd 94 194

Defined contribution plans:

Health Superannuation Pty Ltd 698 560

HESTA 245 222

Other 5 6

Total 1,046 982

Depreciation

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

Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset

value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually,

and adjustments made where appropriate. This depreciation charge is not funded by the

Department of Health.

Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land and investment properties. Depreciation begins when the asset is available for

use, which is when it is in the location and condition necessary for it to be capable of

operating in a manner intended by management.

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

depreciation charges are based.

2012 2011

Buildings

- Structure Shell Building Fabric 45 to 60 years 45 to 60 years - Site Engineering Services and Central Plant 20 to 30 years 20 to 30 years

Central Plant

- Fit Out 20 to 30 years 20 to 30 years - Trunk Reticulated Building Systems 30 to 40 years 30 to 40 years

Plant & Equipment 3 to 7 years 3 to 7 years Medical Equipment 7 to 10 years 7 to 10 years

Computers and Communication 3 years 3 years

Furniture and Fitting 13 years 13 years Motor Vehicles 10 years 10 years

As part of the Buildings valuation, building values were componentised and each component

assessed for its useful life which is represented above.

(h) Financial Instruments


YARRAWONGA HEALTH


28

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

Yarrawonga Health’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the

definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the

definition of financial instruments as they do not arise under contract.

Where relevant, for note disclosure purposes, a distinction is made between those financial

assets and liabilities that meet the definition of financial instruments in accordance with

AASB 132 and those that do not.

The following refers to financial instruments unless otherwise stated.

Categories of non-derivative financial instruments

Financial assets and liabilities at fair value through profit or loss

Financial assets are categorised as fair value through profit or loss at trade date if they are classified as held for trading or designated as such upon initial recognition. Financial

instrument assets are designated at fair value through profit or loss on the basis that the

financial assets form part of a group of financial assets that are managed by the entity concerned based on their fair values, and have their performance evaluated in accordance

with documented risk management and investment strategies.

Financial instruments at fair value through profit and loss are initially measured at fair value

and attributable transaction costs are expensed as incurred. Subsequently, any changes in

fair value are recognised in the net result.

Financial assets held for trading purposes are classified as current assets and are stated at fair value, with any resultant gain or loss recognised in the net result. The net gain or loss

recognised in the net result incorporates any dividend or interest earned on the financial

asset. Fair value is determined in the manner described in Note 16.

Loans and Receivables

Loans and receivables are financial instrument assets with fixed and determinable payments

that are not quoted on an active market. These assets are initially recognised at fair value

plus any attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less and

impairment.

Loans and receivables category includes cash and deposits (refer Note 1(i)), term deposits

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

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is

the rate that exactly discounts estimated future cash receipts through the expected life of the

financial asset, or, where appropriate, a shorter period.

Financial Liabilities at amortised cost

Financial instrument liabilities are initially recognised on the date they are originated. They

are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost

with any difference between the initial recognised amount and the redemption value being

recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method.


YARRAWONGA HEALTH


29

Financial instrument liabilities measured at amortised cost include all of the Health Service’s

contractual payables, deposits held and advances received, and interest bearing arrangements other than those designated at fair value through profit or loss.

(i) Financial assets

Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original maturity of three months or less, which are held for

the purpose of meeting short term cash commitments rather than for investment purposes,

which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Receivables

Receivables consist of:

- Contractual receivables, which includes mainly debtors in relation to goods and services and

accrued investment income; and

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

Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are recognised and measured similarly to

contractual receivables (except for impairment), but are not classified as financial

instruments because they do not arise from a contract.

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

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and

debts which are known to be uncollectible are written off. A provision for doubtful debts is

recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Investments and Other Financial Assets

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

timeframe established by the market concerned, and are initially measured at fair value, net

of transaction costs.

Investments are classified in the following categories:

- Financial assets at fair value through profit or loss;

- Loans and receivables; and

- Available-for-sale financial assets.

Yarrawonga Health 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.

Yarrawonga Health assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.


YARRAWONGA HEALTH


30

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

annual review for impairment.

Investments in jointly controlled assets and operations

In respect of any interest in jointly controlled assets, Yarrawonga Health recognises in the

financial statements: • Its share of jointly controlled assets;

• any liabilities that it had incurred;

• its share of liabilities incurred jointly by the joint venture; • any income earned from the selling or using of its share of the output from the joint

venture; and

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

Details of the jointly controlled asset and operation are set out in Note 19.

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 or 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 Yarrawonga Health assesses whether there is objective

evidence that a financial asset or group of financial asset is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual

review for impairment.

Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered

as written off and allowance for doubtful receivables are expensed.

The amount of the allowance is the difference between the financial asset’s carrying amount

and the present value of estimated future cash flows, discounted at the effective interest rate.

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

for a period of 12 or more months, the financial asset is treated as impaired. In order to determine an appropriate fair value as at 30 June 2012 for its portfolio of financial

assets, Yarrawonga Health based these at invested value as all investments are in term

deposits with reputable financial institutions. Therefore invested face value represents fair value.

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


YARRAWONGA HEALTH


31

estimates, averages and other computational methods in accordance with AASB 136

Impairment of Assets.

Net Gain / (Loss) on Financial Instruments

Net gain / (loss) on financial instruments includes:

- realised and unrealised gains and losses from revaluations of financial instruments that are

designated at fair value through profit or loss or held-for-trading; - impairment and reversal of impairment for financial instruments at amortised cost; and

- disposals of financial assets.

Revaluations of Financial Instruments at Fair Value

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

(j) Non-Financial Assets

Inventories

Inventories include goods and other property held either for sale, consumption or for

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

Inventories held for distribution are measured at cost, adjusted for any loss of service

potential. All other inventories, including land held for sale, are measured at the lower of cost

and net realisable value.

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

Inventories acquired at no cost or for nominal consideration are measured at current

replacement cost at the date of acquisition.

Non-financial Physical Assets Classified as Held for Sale

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

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

within 12 months from the date of classification, and the asset is available for immediate use

in the current condition.

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

and are not subject to depreciation.

Property, Plant and Equipment

All non-current physical are measured initially at cost and subsequently revalued at fair value

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


YARRAWONGA HEALTH


32

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

after due consideration is made for any legal or constructive restrictions imposed on the

asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to eth asset (s) are not

taken into account until it is virtually certain that any restrictions will no longer apply.

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

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

at fair value less accumulated depreciation and impairment. Depreciated historical cost is

generally a reasonable proxy for fair value because of the short lives of the assets concerned.

Revaluations of Non-current Physical Assets

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

FRD 103D Non-current physical assets. This revaluation process normally occurs at least every five years, based upon the asset’s Government Purpose Classification, but may occur

more frequently if fair value assessments indicate material changes in values. Independent

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

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

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

the extent that an increment reverses a revaluation decrement in respect of that same class

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

Revaluation decrements are recognised immediately as expenses in the net result, except

that, to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of assets, they are debited directly to the asset revaluation surplus.

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

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

It was found there was no material movement in the fair value of the non-current physical

assets.

OOther non-financial assets

Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting

period covering a term extending beyond that period.

Disposal of Non-Financial Assets

Any gain or loss on the sale of non-financial assets is recognised in the comprehensive

operating statement at the date that control of the asset is passed to the buyer and is

determined after deducting from the proceeds the carrying value of the asset at that time.

impairment of Non-Financial Assets


YARRAWONGA HEALTH


33

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

• inventories; • financial assets;

• non-current physical assets held for sale; and • assets arising from construction contracts.

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

carrying value exceeds their possible recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the

extent that the write-down can be debited to an asset revaluation surplus amount applicable

to that same class of asset.

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

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

the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been recognised in

prior years.

It is deemed that, in the event of the loss or destruction of an asset, the future economic

benefits arising from the use of the asset will be replaced unless a specific decision to the

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

assets held primarily to generate net cash inflows is measured at the higher of the present

value of future cash flows expected to be obtained from the asset and fair value less costs to sell.

(k) Liabilities

Payables

Payables consist of:

• Contractual payables which consist predominately of accounts payable representing

liabilities for goods and services provided to the health service prior to the end of the financial year that are unpaid, and arise when the health services becomes obliged to

make future payments in respect of the purchase of those goods and services.

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

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

Contractual payables are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual

payables, but are not classified as financial instruments and not included in the category of

financial liabilities at amortised cost, because they do not arise from a contract.

Provisions

Provisions are recognised when the Health Service has a present obligation, the future

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

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

surrounding the obligation. Where a provision is measured using the cash flows estimated to


YARRAWONGA HEALTH


34

settle the present obligation, its carrying amount is the present value of those cash flows,

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

When some or all of the economic benefits required to settle a provision are expected to be

received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

Employee Benefits

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

wages and salaries, including non-monetary benefits, annual leave, accumulating sick leave and accrued days off which are expected to be settled within 12 months of the reporting date

are recognised in the provision for employee benefits in respect of employee’s services up to

the reporting date, and are classified as current liabilities and measured at their nominal values.

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

the provision for employee benefits as current liabilities, but are measured at present value

of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

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

Current Liability – unconditional LSL (representing 10 or more years of continuous service) is disclosed in the notes to the financial statements as a current liability even where

Yarrawonga Health does not expect to settle the liability within 12 months because it will not

have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.

The components of this current LSL liability are measured at:

• present value – component that the Yarrawonga Health does not expect to settle

within 12 months; and • nominal value – component that Yarrawonga Health expects to settle within 12

months.

Non-Current Liability – conditional LSL (representing less than 10 years of continuous

service) is disclosed as a non-current liability. There is an unconditional right to defer the

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

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

departures and periods of service. Expected future payments are discounted using interest

rates of Commonwealth Government guaranteed securities in Australia.

Termination Benefits Termination benefits are payable when employment is terminated

before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits.

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has been raised with those employees affected that

the terminations will be carried out. The liabilities for termination benefits are recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they

are recognised as a provision.

On-Costs

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


YARRAWONGA HEALTH


35

Superannuation liabilities

Yarrawonga Health does not recognise any unfunded defined benefit liability in respect of the

superannuation plans because the Health Service has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation

contributions as they fall due. The Department of Treasury and Finance administers and

discloses the State’s defined benefit liabilities in its financial statements.

(l) Leases

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

ownership.

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

other leases are classified as operating leases.

Operating Leases

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

the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits

derived from the use of the leased asset.

Lease Incentives

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of

the incentive’s nature or form or the timing of payments.

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

such incentives are recognised as a liability. The aggregate benefits of incentives are recognised as a reduction of rental expense on a straight-line basis, except where another

systematic basis is more representative of the time pattern in which economic benefits from

the leased asset is diminished.

(m) Equity

Contributed Capital

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to

Wholly-Owned Public Sector Entities and FRD 119 Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other

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

Property, Plant & Equipment Revaluation Surplus

The asset revaluation surplus is used to record increments and decrements on the revaluation

of non-current physical assets.

Financial Asset Available-for-Sale Revaluation Surplus

The available-for-sale revaluation surplus arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold that portion of the reserve which


YARRAWONGA HEALTH


36

relates to that financial asset is effectively realised, and is recognised in the comprehensive

operating statement. Where a revalued financial asset is impaired that portion of the reserve

which relates to that financial asset is recognised in the comprehensive operating statement.

Specific Restricted Purpose Reserve

A specific restricted purpose reserve is established where the Health Service has possession

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

(n) Commitments

Commitments for future expenditure include operating and capital commitments arising from

contracts. These commitments are disclosed by way of a note (refer to note 17) 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.

(o) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are

disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent

assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.

Yarrawonga Health has no known contingent assets or liabilities as at 30 June 2012.

(p) Goods and Service Tax (“GST”)

Income, expenses and assets are recognised net of the amount of associated GST, unless the

GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

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

with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from

investing or financing activities which are recoverable from, or payable to, the taxation

authority are presented as an operating cash flow.

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

(q) Rounding

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

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

(r) AASs issued that are not yet effective

Certain new Australian accounting standards and interpretations have been published that


YARRAWONGA HEALTH


37

are not mandatory for the 30 June 2012 reporting period.

As at 30 June 2012, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective fir the first financial statements for

reporting periods commencing after the stated operative dates as detailed in the table below. Yarrawonga Health has not and does not intend to adopt these standards early.

Standard/ Interpretation

Summary Applicable for annual reporting periods beginning

on

Impact on public sector entity financial statements

AASB 9 Financial

instruments

This standard simplifies requirements

for the classification and

measurement of financial assets

resulting from Phase 1 of the IASB’s

project to replace IAS 39 Financial

Instruments: Recognition and

Measurement (AASB 139 Financial

Instruments: Recognition and

Measurement).

1 Jan 2013 Detail of impact is still being

assessed.

AASB 11 Joint

Arrangements

This Standard requires entities that

have an interest in arrangements

thata are controlled jointly to assess

whether the arrangement is a joint

operation or joint venture. AASB 11

shall be applied for an arrangement

that is a join operation. It also

replaces parts of requirements in

AASB 131 Interests in Joint

Ventures.

1 Jan 2013 Not-for-profit entities are not

permitted to apply this standard

prior to the mandatory application

date. The AASB is assessing the

applicability of principles in AASB

11 in a not-for-profit context.

As such, impact will be assessed

after the AASB’s deliberation.

AASB 13 Fair Value

Measurement

This Standard outlines the

requirements for measuring the fair

value of assets and liabilities and

replaces the existing fair value

definition and guidance in other

AASs. AASB 13 includes a ‘fair value

hierarchy’ which ranks the valuation

technique inputs into three levels

using unadjusted quoted prices in

active markets for identical assets or

liabilites; other observable inputs;

and unobservable inputs.

1 Jan 2013 Disclosure for fair value

measurements using unobservable

inputs are relatively onerous

compared to disclosure for fair

value measurements using

observable inputs. Consequently,

the standard may increase the

disclosures for public sector entities

that have assets measured using

depreciated replacement cost.

Standard/

Interpretation


on

Impact on public sector entity

financial statements

AASB 119 Employee

Benefits

In this revised Standard for defined

benefit superannuation plans, there

is a change to the methodology in

the calculation of superannuation

expenses, in particular there is now a

change in the split between

superannuation interest expense


permitted to apply this Standard


date.

While the total superannuation

expense is unchanged, the revised

methodology is expected to have a


YARRAWONGA HEALTH


38

(classified as transactions) and

actuarial gains and losses (classified

as ‘Other economic flows – other

movements in equity’) reported on

the comprehensive operating

statement.

negative impact on the net result

from transactions of the general

government sector and for those

few Victorian public sector entities

that report superannuation defined

benefit plans.

AASB 128

Investments in

Associates and Joint

Ventures

This revised Standard sets out the

requirements for the application of

the equity method when accounting

for investments in associates and

joint ventures.


permitted to apply this Standard


date. The AASB is assessing the

applicability of principles in AASB

128 in a not-for-profit context.

As such, impact will be assessed

after the AASB’s deliberation.

AASB 1053

Application of Tiers of

Australian Accounting

Standards

This Standard establishes a

differential financial reporting

framework consisting of two

tiers of reporting requirements

for preparing general purpose

financial statements.

1 July 2013 The Victorian Government is

currently considering the impacts of

Reduced Disclosure Requirements

(RDRs) for certain public sector

entities and has not decided if

RDRs will be implemented to the

Victorian Public Sector.

AASB 2009-11

Amendments to


Standards arising

from AASB 9

[AASB 1, 3, 4, 5, 7,

101, 102, 108, 112,

118, 121, 127, 128,

131, 132, 136, 139,

1023 and 1038 and

Interpretations 10 and

12]

This Standard gives effect to

consequential changes arising from

the issuance of AASB 9.

1 Jan 2013 No significant impact is expected

from these consequential

amendments on entity reporting.

AASB 2010-2

Amendments to


Standards arising

from Reduced

Disclosure

Requirements

This Standard makes amendments

to many Australian Accounting

Standards, including Interpretations,

to introduce reduced disclosure

requirements to the pronouncements

for application by certain types of

entities.




(RDRs) for certain public sector

entities and has not decided if

RDRs will be implemented in the

Victorian public sector.

Standard/

Interpretation


on



AASB 2010-7

Amendments to


Standards arising

from AASB 9

(December 2010)

[AASB 1, 3, 4, 5, 7,

101, 102, 108, 112,

118, 120, 121, 127,

These consequential amendments

are in relation to the introduction of

AASB 9.



amendments on entitity reporting.


YARRAWONGA HEALTH


39

128, 131, 132, 136,

137, 139, 1023 &

1038 and

Interpretations 2, 5,

10, 12, 19 & 127]

AASB 2010-10

Further Amendments

to Australian

Accounting Standards

– Removal of Fixed

Dates for First-time

Adopters

[AASB 2009-11 &

AASB

2010-7]

The amendments ultimately affect

AASB 1 First-time Adoption of

Australian Accounting Standards and

provide relief for first-time adopters of

Australian Accounting Standards

from having to reconstruct

transactions that occurred before

their date of transition to Australian

Accounting Standards.

1 Jan 2013 No significant impact is expected on

entity reporting.

AASB 2011-2

Amendments to


Standards arising

from the Trans-

Tasman

Convergence Project

– Reduced Disclosure

Requirements

[AASB 101 & AASB

1054]

The objective of this amendment is to

include some additional disclosure

from the Trans-Tasman

Convergence Project and to reduce

disclosure requirements for entities

preparing general purpose financial

statements under Australian

Accounting Standards – Reduced

Disclosure Requirements.




(RDRs) and has not decided if

RDRs will be implemented to

Victorian Public Sector.

AASB 2011-3

Amendments to


Standards – Orderly

Adoption of Changes

to the ABS GFS

Manual and Related

Amendments [AASB

1049]

This amends AASB 1049 to clarify

the definition of the ABS GFS

Manual, and to facilitate the adoption

of changes to the ABS GFS Manual

and related disclosures.

1 July 2012 This amendment provides

clarification to users preparing the

whole of government and general

government sector financial reports

on the version of the GFS Manual to

be used and what to disclose if the

latest GFS Manual is not used.

No impact on departmental or entity

reporting.


YARRAWONGA HEALTH


40

Standard/Interpretation Summary Applicable for annual reporting periods beginning

on



AASB 2011-4 Amendments

to Australian Accounting

Standards to Remove

Individual Key Key

Management Personnel

Disclosure Requirements

[AASB 124]

This Standard amends AASB

124 Related Party Disclosures

by removing the disclosure

requirements in AASB 124 in

relation to individual key

management personnel (KMP).

1 July 2013 No significant impact is expected





Standards – Extending

Relief from Consolidation,

the Equity Method and

Proportionate Consolidation

– Reduced Disclosure

Requirements [AASB 127,

AASB 128 & AASB 131]

The objective of this standard is

to make amendments to AASB

127 Consolidated and Separate

Financial Statements, AASB 128

Investments in Associates and

AASB 131 Interests in Joint

Ventures to extend the

circumstances in which an entity

can obtain relief from

consolidation, the equity method

or proportionate consolidation.


currently considering the impacts

of Reduced Disclosure

Requirements (RDRs) and has not

decided if RDRs will be

implemented in the Victorian

public sector.



Standards arising from the

Consolidation and Joint

Arrangement Standards

[AASB 1, 2, 3, 5, 7, 9,

2009-11, 101, 107, 112,

118, 121, 124, 132, 133,

136, 138, 139, 1023 & 1038

and interpretations 5, 9, 16

& 17]

This Standard outlines

consequential changes arising

from the issuance of the five

‘new Standards’ to other

Standards. For example,

references to AASB 127

Consolidated and Separate

Financial Statements are

amended to AASB 10

Consolidated Financial

Statements or AASB 127

Separate Financial Statements,

and references to AASB 131

Interests in Joint Ventures are

deleted as that Standard has

been superseded by AASB 11

and AASB 128 (August 2011).






Standards arising from

AASB 13 [AASB 1, 2, 3, 4,

5, 7, 9, 2009-11, 2010-7,

101, 102, 108, 110, 116,

117, 118, 119, 120, 121,

128, 131, 132, 133, 134,

136, 138, 139, 140, 141,

1004, 1023 & 1038 and

interpretations 2, 4, 12, 13,

14, 17, 19, 131 & 132]

This amending Standard makes

consequential changes to a

range of Standards and

Interpretations arising from the

issuance of AASB 13. In

particular, this Standard replaces

the existing definition and

guidance of fair value

measurements in other

Australian Accounting Standards

and Interpretations.

1 Jan 2013 Disclosures for fair value

measurements using

unobservable inputs is potentially

onerous, and may increase

disclosures for assets measured

using depreciated replacement

cost.


YARRAWONGA HEALTH


41


on





Standards – Presentation

of Items of Other

Comprehensive Income

[AASB 1, 5, 7, 101, 112,

120, 121, 132, 133, 134,

1039 & 1049]

The main change resulting from

this Standard is a requirement

for entities to group items

presented in other

comprehensive income (OCI) on

the basis of whether they are

potentially reclassifiable to profit

or loss subsequently

(reclassification adjustments).

These amendments do not

remove the option to present

profit or loss and other

comprehensive income in two

statements, nor change the

option to present items of OCI

either before tax or net of tax.

1 July 2012 This amending Standard could

change the current presentation of

‘Other economic flows – other

movements in equity’ that will be

grouped on the basis of whether

theya re potentially reclassifiable

to profit or loss subsequently.

No other significant impact will be

expected.

AASB 2011-10

Amendments to Australian

Accounting

Standardsarising from

AASB 119 (September

2011) [AASB 1, AASB 8,

AASB 101, AASB 124,

AASB 134, AASB 1049 &

AASB 2011-8 and

Interpretation 14]

This Standard makes

consequential changes to a

range of other Australian

Accounting Standards and

Interpretation arising from the

issuance of AASB 119 Employee

Benefits.




AASB 2011-11

Amendments to AASB 119

(September 2011) arising

from Reduced Disclosure

Requirements

This Standard makes

amendments to AASB 119

Employee Benfits (September

2011), to incorporate reduced

disclosure requirements into the

Standard for entities applying

Tier 2 requirements in preparing

general purpose financial

statements.


currently considering the impacts

of Reduced Disclosure

Requirements (RDRs) and has not

decided if RDRs will be

implemented in the Victorian

public sector.


YARRAWONGA HEALTH


42


on



2011-13 Amendments to


Standard – Improvements

to AASB 1049

This Standard aims to improve

the AASB 1049 Whole of

Government and General

Government Sector Financial

Reporting at the operational

level. The main amendments

clarify a number of requirements

in AASB 1049, including the

amendment to allow disclosure

of other measures of key fiscal

aggregates as long as they are

clearly distinguished from the

key fiscal aggregates and do not

detract from the information

required by AASB 1049.

Furthermore, this Standard

provides additional guidance and

examples on the classification

between ‘transactions’ and ‘other

economic flows’ for GAAP items

without GFS equivalents.

1 July 2012

No significant impact is expected



2012-1 Amendments to


Standards – Fair Value

Measurement – Reduced

Disclosure Requirements

[AASB 3, AASB 7, AASB

13, AASB 140 & AASB

141]

This amending Standard

prescribes the reduced

disclosure requirements in a

number of Australian Accounting

Standards as a consequence of

the issuance of AASB 13 Fair

Value Measurement.

1 July 2013 As the Victorian whole of

government and the general

government (GG) sector are

subject to Tier 1 reporting

requirements (refer to AASB 1053

Application of Tiers of Australian

Accounting Standards), the

reduced disclosure requirements

included in AASB 2012-1 will not

affect the financial reporting for

Victorian whole of government

and GG sector.

(s) Category Groups

Yarrawonga Health has used the following category groups for reporting purposes for the

current and previous financial years.

Admitted Patient Services (Admitted Patients) comprises all recurrent health

revenue/expenditure on admitted patient services, where services are delivered in public hospitals, or free standing day hospital facilities, or alcohol and drug treatment units or

hospitals specialising in dental services, hearing and ophthalmic aids.

Aged Care comprises revenue/expenditure form Home and Community Care (HACC)

programs, Allied Health, Aged Care Assessment and support services.


YARRAWONGA HEALTH


43

Primary Health comprises revenue/expenditure for Community Health Services including

health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational

therapy.

Residential Aged Care comprises those Commonwealth-licensed residential aged care services.

Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue / expenditure for capital purpose, Radiology and the provision of external

Meals Service. Health and Community Initiatives also falls in this category group.


Yarrawonga Health

Notes to the Financial Statements

30 June 2012

44

Note 2: Revenue

HSA HSA H&CI H&CI Total Total

2012 2011 2012 2011 2012 2011

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

Revenue from Operating Activities

Government Grants

- Department of Health 8,863 8,945 - - 8,863 8,945

- Department of Human Services 82 80 - - 82 80

- Commonwealth Government

- Residential Aged Care Subsidy 3,305 3,242 - - 3,305 3,242

- Other 70 65 - - 70 65

Total Government Grants 12,320 12,332 - - 12,320 12,332

Indirect Contributions by Department of Health -

- Insurance 22 238 - - 22 238

- Long Service Leave 75 129 - - 75 129

Total Indirect Contributions by Department of Health 97 367 - - 97 367

Patient and Resident Fees -

- Patient and Resident Fees (refer note 2b) 608 546 - - 608 546

- Residential Aged Care (refer note 2b) 1,471 1,467 - - 1,471 1,467

Total Patient & Resident Fees 2,079 2,013 - - 2,079 2,013

Business Units -

- Diagnostic Imaging - - 44 203 44 203

- Catering - - 117 111 117 111

Total Commercial Activites & Specific Purpose Funds - - 161 314 161 314

Donations & Bequests 41 188 - - 41 188

Recoupment from Private Practice for Use of Hospital Facilities 84 24 - - 84 24

Other Revenue from Operating Activities 375 265 - - 375 265

Total Revenue from Operating Activities 14,996 15,189 161 314 15,157 15,503

Revenue from Non-Operating Activities

Interest & Dividends 437 139 - - 437 139

Total Revenue from Non-Operating Activities 437 139 - - 437 139

Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment - - 431 27 431 27

- Other - - 17 707 17 707

Net Gain/(Loss) on Disposal of Non-Financial Assets (refer note

2c) - - 25 41 25 41

Net Gain/(Loss) on Disposal of Financial Assets - - - (158) - (158)

Capital Interest - - - 178 - 178

Capital Dividends - - - 126 - 126

Total Capital Purpose Income - - 473 921 473 921

Total Revenue (refer to note 2a) 15,433 15,328 634 1,235 16,067 16,563

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

Indirect contributions by Department of Health: Department of Health makes certain payments on behalf of the Health Service. These amounts have been brought

to account in determining the operating result for the year by recording them as revenue and expenses.


Yarrawonga Health


30 June 2012

45

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

Admitted RAC Aged Primary Other Total

Patients Care Health2012 2012 2012 2012 2012 2012

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

Revenue from Services Supported by Health Services

Agreement

Government Grants 6,703 4,508 384 725 - 12,320

Indirect contributions by Department of Health 90 7 - - - 97

Patient and Resident Fees (refer note 2b) 458 1,471 128 22 - 2,079

Donations & Bequests (non capital) 19 6 1 15 - 41

Recoupment from Private Practice for Use of Hospital

Facilities - - - - 84 84

Other Revenue from Operating Activities 243 6 5 87 34 375

Interest and Dividends - 54 - - 383 437

Total Revenue from Services Supported by Health

Services Agreement 7,513 6,052 518 849 501 15,433

Revenue from Services Supported by Hospital and

Community Initiatives

Commercial Activities and Specific Purpose Funds - - - - 161 161

Capital Purpose Income (refer note 2) - - - - 473 473

Total Revenue from Services Supported by Hospital

and Community Initiatives - - - - 634 634

Total Revenue 7,513 6,052 518 849 1,135 16,067

Admitted RAC Aged Primary Other Total

Patients Care Health

2011 2011 2011 2011 2011 2011

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

Revenue from Services Supported by Health Services

Government Grants 6,869 4,400 362 701 - 12,332

Indirect contributions by Department of Health 277 78 - - 12 367

Patient and Resident Fees (refer note 2b) 392 1,467 132 22 - 2,013

Donations & Bequests (non capital) 143 13 2 13 17 188

Recoupment from Private Practice for Use of Hospital

Facilities - - - - 24 24

Other Revenue from Operating Activities 29 3 83 150 265

Interest and Dividends - 80 - - 59 139

Total Revenue from Services Supported by Health

Services Agreement 7,710 6,041 496 819 262 15,328

Revenue from Services Supported by Hospital and

Community Initiatives

Commercial Activities and Specific Purpose Funds - - - - 314 314

Other

Capital Purpose Income (refer note 2) - - - - 921 921

Total Revenue from Services Supported by Hospital

and Community Initiatives - - - - 1,235 1,235

Total Revenue 7,710 6,041 496 819 1,497 16,563

Indirect contributions by Department of Health: Department of Health makes certain payments on behalf of the Health Service. These amounts have

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


Yarrawonga Health


30 June 2012

46

Note 2b: Patient and Resident Fees Raised

2012 2011

$'000 $'000

Patient and Resident Fees

Acute (incl rehabilitation, GEM and other acute care types)

– Inpatients 458 392

Residential Aged Care

– Residential Accommodation Payments(*) 1,471 1,467

Other 150 154

Total Patient & Resident Fees 2,079 2,013

Capital Purpose Income:

Residential Accommodation Payments(*) - -

Total Capital Purpose Income - -

2012 2011

$'000 $'000

Proceeds from Disposals of Non-Current Assets

- Motor Vehicles 44 75

- Other 70 1

Total Proceeds from Disposal of Non-Current Assets 114 76

Less: Written Down Value of Non-Current Assets Sold

- Motor Vehicles (40) (35)

- Other (49) -

Total Written Down Value of Non-Current Assets Sold (89) (35)

Net gains/(loss) on Disposal of Non-Current AssetsNet gains/(loss) on Disposal of Non-Current Assets 25 41

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

(*) This includes accommodation charges, interest earned on accommodation bonds and

retention amount.


Yarrawonga Health


30 June 2012

47

Note 3: Expenses

HSA HSA H&CI H&CI Total Total

2012 2011 2012 2011 2012 2011

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

Employee Expenses

Salaries & Wages 10,392 9,985 21 47 10,413 10,032

WorkCover Premium 108 140 - 1 108 141

Departure Packages 55 - - - 55 -

Long Service Leave 289 380 - - 289 380

Superannuation 1,014 958 2 4 1,016 962

Total Employee Expenses 11,858 11,463 23 52 11,881 11,515

Non Salary Labour Costs

Fees for Visiting Medical Officers 534 568 - - 534 568

Contractors and consultants 245 168 62 159 307 327

Total Non Salary Labour Costs 779 736 62 159 841 895

Supplies & Consumables

Drug Supplies 65 127 - - 65 127

S100 Drugs 127 102 - - 127 102

Medical, Surgical Supplies and Prosthesis 305 253 - 5 305 258

Pathology Services and Supplies 54 48 - - 54 48

Food Supplies 345 355 - - 345 355

Total Supplies and Consumables 896 885 - 5 896 890

Other Expenses

Domestic Services & Supplies 273 238 - - 273 238

Fuel, Light, Power and Water 250 218 - - 250 218

Insurance costs funded by the Department of Health 138 238 - - 138 238

Motor Vehicle Expenses 71 105 - - 71 105

Repairs & Maintenance 230 165 1 3 231 168

Maintenance Contracts 114 117 - 3 114 120

Patient Transport 202 211 - - 202 211

Bad & Doubtful Debts 4 43 - - 4 43

Lease Expenses 55 27 - - 55 27

Other Administrative Expenses 621 542 1 2 622 544

Other 210 257 - - 210 257

Audit Fees

- VAGO - Audit of financial Statements 23 25 - - 23 25

- Other 3 3 - - 3 3

Total Other Expenses 2,194 2,189 2 8 2,196 2,197

Impairment of Assets

Depreciation 1,914 1,897 - - 1,914 1,897

Total Impairment of Assets 1,914 1,897 - - 1,914 1,897

Total Expenses 17,641 17,170 87 224 17,728 17,394


Yarrawonga Health


30 June 2012

48

Note 3a: Analysis of Expenses by Source(based on the consolidated view of note 3)

Admitted Residential Aged Primary Other Total

Patients Aged Care Care Health

2012 2012 2012 2012 2012 2012

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

Services Supported by Health Services Agreement

Employee Expenses 3,632 4,841 352 812 2,221 11,858

Non Salary Labour Costs 684 15 - 24 55 779

Supplies & Consumables 425 164 15 1 291 896

Other Expenses from Continuing Operations 902 320 10 114 848 2,194

Total Expenses from Services Supported by Health

Services Agreement 5,643 5,340 377 951 3,415 15,727

Services Supported by Hospital and Community

Initiatives

Employee Expenses - - - - 23 23

Non Salary Labour Costs - - - - 62 62

Supplies & Consumables - - - - - -

Other Expenses from Continuing Operations - - - - 2 2

Total Expenses from Services Supported by Hospital


Depreciation (refer Note 4) - - - - 1,914 1,914

Total Expenditure by services supported by Health

Services Agreement and by Hospital and Community

Initiatives

- - - - 1,914 1,914

Total Expenses 5,643 5,340 377 951 5,416 17,729

Admitted Residential Aged Primary Other Total

Patients Aged Care Care Health

2011 2011 2011 2011 2011 2011

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

Services Supported by Health Services Agreement

Employee Expenses 4,608 4,880 353 717 905 11,463

Non Salary Labour Costs 639 20 - 8 69 736

Supplies & Consumables 727 138 14 5 1 885

Other Expenses from Continuing Operations 1,002 334 15 131 707 2,189

Total Expenses from Services Supported by Health

Services Agreement 6,976 5,372 382 861 1,682 15,273

Services Supported by Hospital and Community

Initiatives

Employee Expenses - - - - 52 52

Non Salary Labour Costs - - - - 159 159

Supplies & Consumables - - - - 5 5

Other Expenses from Continuing Operations - - - - 8 8

Total Expenses from Services Supported by Hospital


Depreciation (refer Note 4) - - - - 1,897 1,897

Total Expenditure by services supported by Health

Services Agreement and by Hospital and Community

Initiatives

- - - - 1,897 1,897

Total Expenses 6,976 5,372 382 861 3,803 17,394


Yarrawonga Health


30 June 2012

49

2012 2011

$'000 $'000

Commercial Activities

Diagnostic Imaging 87 224

TOTAL 87 224

Note 4: Depreciation

2012 2011

$'000 $'000

Depreciation

Buildings 1,490 1,446

Plant & Equipment 55 41

Medical Equipment 185 185

Computers and Communication 22 49

Furniture and Equipment 67 64

Motor Vehicles 92 111

Other Assets 3 1

Total Depreciation 1,914 1,897

Note 5: Cash and Cash Equivalents

2012 2011

$'000 $'000

Cash on Hand 1 1

Cash at Bank 682 436

Total Cash and Cash Equivalents 683 437

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement) 683 437

Total Cash and Cash Equivalents 683 437

Note 3b: Analysis of expenses by internal managed and restricted specific

purpose funds for services supported by hospital and community initiatives

For the purposes of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short-


Yarrawonga Health


30 June 2012

50

Note 6: Receivables

2012 2011

$'000 $'000

CURRENT

Contractual

Inter Hospital Debtors

Trade Debtors 143 303

Patient Fees 432 383

Accrued Investment Income 86 121

Less Allowance for Doubtful Debts (84) (88)

577 719

Statutory

GST Receivable 81 125

Accrued Revenue - Department of Health 27 153

108 278

TOTAL CURRENT RECEIVABLES 685 997

NON CURRENT

Statutory

Long Service Leave - Department of Health 639 565

639 565

TOTAL NON-CURRENT RECEIVABLES 639 565

TOTAL RECEIVABLES 1,324 1,562

(a) Movement in the Allowance for doubtful debts

2012 2011

$'000 $'000

Balance at beginning of year 88 45

Increase/(decrease) in allowance recognised in net result (4) 43

Balance at end of year 84 88

(b) Ageing analysis of receivables

Please refer to note 16(b) for the ageing analysis of contractual receivables

(c) Nature and extent of risk arising from receivables

Please refer to note 16(b) for the nature and extent of credit risk arising from contractual receivables.


Yarrawonga Health


30 June 2012

51

Note 7: Investments and other Financial Assets

2012 2011 2012 2011 2012 2011

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

CURRENT

Term Deposit

Aust. Dollar Term Deposits > 3 months* - - 7,142 6,386 7,142 6,386

Total Current - - 7,142 6,386 7,142 6,386

TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS- - 7,142 6,386 7,142 6,386

Represented by:

Health Service Investments - - 548 740 548 740

Monies Held in Trust

Hume Region Health Alliance 1 1 1 1

Accommodation Bonds (Refundable Entrance Fees) - - 6,593 5,645 6,593 5,645

TOTAL INVESTMENTS AND OTHER FINANCIAL ASSETS- - 7,142 6,386 7,142 6,386

Notes:

* Term deposits under 'Investments and other financial assets' class include only term deposits with maturity greater than 90 days.

(b) Ageing analysis of investments and other financial assets

Please refer to note 16(b) for the ageing analysis of investments and other financial assets.

(c) Nature and extent of risk arising from investments and other financial assets.

Please refer to note 16(b) for the nature and extent of credit risk arising from investments and other financial assets.

Note 8: Inventories

2012 2011

$'000 $'000

Pharmaceuticals

At cost 13 13

Medical and Surgical Lines

At cost 40 27

TOTAL INVENTORIES 53 40

Note 9: Other Assets

2012 2011

$'000 $'000

CURRENTPrepayments 31 167

TOTAL CURRENT OTHER ASSETS 31 167 TOTAL OTHER ASSETS 31 167

Operating Fund Specific Purpose Fund Total


Yarrawonga Health


30 June 2012

52

Note 10: Property, Plant & Equipment

2012 2011

$'000 $'000

Land

Land at Fair Value 1,688 1,551

Less Impairment

Total Land 1,688 1,551

Buildings

Buildings Under Construction at cost 48 35

Buildings at fair value 23,383 23,106

Less Accumulated Depreciation (4,369) (2,880)

Total Buildings 19,063 20,261

Plant and Equipment

Plant and Equipment at Fair Value 541 450

Less Accumulated Depreciation (339) (284)

Total Plant and Equipment 202 166

Medical Equipment

Medical Equipment at Fair Value 1,644 1,760

Less Accumulated Depreciation (1,220) (1,166)

Total Medical Equipment 424 594

Computers and Communication

Computers and Communication at Fair Value 490 490


Total Computers and Communications 40 62

Furniture and Fittings

Furniture and Fittings at Fair Value 602 567


Total Furniture and Fittings 181 212

Motor Vehicles

- Motor Vehicles at Fair Value 354 378


Total Motor Vehicles 136 180

Fixed Assets Other

- Other Assets at Fair Value 6 8


Total Other Fixed Assets 3 7

TOTAL 21,737 23,033


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Yarrawonga Health


30 June 2012

54

Note 11: Payables

2012 2011

$'000 $'000

CURRENT

Contractual

Trade Creditors 378 833

Accrued Expenses 117 125

495 958

Statutory

GST Payable 13 15

Other

Income in Advance Department of Health 438 -

Share of Hume Rural Health Alliance 54 60

505 75

TOTAL CURRENT 1,000 1,033

(a) Maturity analysis of payables

Note 12: ProvisionsNote 12: Provisions

2012 2011

$'000 $'000

Current Provisions

Employee Benefits (i)

- Unconditional and expected to be settled within 12

months (ii) 400 365

- Unconditional and expected to be settled after 12

months (iii) 2,567 2,442

Other

2,967 2,807

Provisions Related to employee benefit on-costs

- Unconditional and expected to be settled within 12

months (ii) 60 57

- Unconditional and expected to be settled after 12

months (iii) 381 381

441 438

Total Current Provisions 3,408 3,245

Non-Current Provisions

Employee Benefits (i) 274 336

Provisions related to Employee Benefit On-Costs 41 52

Total Non-Current Provisions 315 388

Total Provisions 3,723 3,633

(a) Employee Benefits and related on-costs

Current Employee Benefits and related on-costs

Unconditional LSL Entitlements 1,697 1,600

Annual Leave entitlements 1,095 989

Accrued Wages and Salaries 588 629

Accrued Days Off 28 27

Conditional long service leave entitlements (iii) 315 388

Total Employee Benefits and Related On-Costs 3,723 3,633

(b) Movements in provisions

Movement in Long Service Leave : 1,988 1,775

Balance at start of year

Provision made during the year

- Revaluations 42 21

- Expense recognising employee service 243 357

- Settlement made during the year (260) (165)

Balance at end of year 2,013 1,988

Notes :

(ii) The amounts disclosed are nominal amounts.

(iii) The amounts disclosed are discounted to present values.

Please refer to Note 16c for the ageing analysis of contractual payables

Please refer to Note 16 for the nature and extent of risks arising from contractual payables

(b) Nature and extent of risk arising from payables

(i) Provisions for employee benefits consist of amounts for annual leave and long service

leave accrued by employees, not including on-costs.


Yarrawonga Health


30 June 2012

55

Note 13: Other Liabilities

2012 2011

$'000 $'000

CURRENT

Monies Held in Trust*

- Accommodation Bonds (Refundable Entrance Fees)* 6,593 5,645

Other

- (Share of) Hume Rural Health Alliance 1 1

Total Current 6,594 5,646

Total Other Liabilities 6,594 5,646

* Total Monies Held in Trust

Represented by the following assets:

Investment and other Financial Assets (refer to Note 7) 6,594 5,646

TOTAL 6,594 5,646

Note 14: Equity

2012 2011

$'000 $'000

(a) Surpluses

Property, Plant & Equipment Revaluation Surplus 1

Balance at the beginning of the reporting period 7,019 7,111

Revaluation Increment/(Decrements)

- Buildings - (92)Balance at the end of the reporting period * 7,019 7,019

* Represented by:

- Land 263 263

- Buildings 6,756 6,756 7,019 7,019

Financial Assets Available-for-Sale Revaluation Surplus

2

Balance at the beginning of the reporting period - (133)

Cumulative (gain)/loss transferred to Operating Statement on

Sale of Financial Assets - 133

Balance at end of the reporting period - -

Total Reserves 7,019 7,019

(b) Contributed Capital

Balance at the beginning of the reporting period 16,588 16,588 Balance at the end of the reporting period 16,588 16,588

(c) Accumulated Surpluses/(Deficits)

Balance at the beginning of the reporting period (2,294) (1,463)

Net Result for the Year (1,661) (831)Balance at the end of the reporting period (3,954) (2,294)

Total Equity at end of financial year 19,653 21,313

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

property, plant & equipment.

(2) The financial assets available-for-sale revaluation surplus arises on the revaluation of

available-for-sale financial assets. Where a revalued financial asset is sold, that portion of

the reserve which relates to the financial asset, and is effectively realised, is recognised in

the net result. Where a revalued financial asset is impaired that portion of the reserve which

relates to that financial asset is recognised in net result.


Yarrawonga Health


30 June 2012

56

2012 2011

$'000 $'000

Net Result for the Year (1,661) (831)

Depreciation 1,914 1,897

Provision for Doubtful Debts 4 (43)

Net (Gain)/Loss from Disposal of Non Financial Physical (25) (41)

Net (Gain) / Loss from Disposal of Financial Assets - 158

(Increase)/Decrease in Receivables 239 (348)

(Increase)/Decrease in Prepayments 136 71

Increase/(Decrease) in Payables (33) 177

Increase/(Decrease) in Employee Benefits 90 604

Increase/(Decrease) in Other Liabilities - 60

Change in Inventories (13) 2

NET CASH INFLOW / (OUTFLOW) FROM OPERATING

ACTIVITIES 651 1,706

Note 15: Reconciliation of Net Result for the Year to Net Cash Note 15: Reconciliation of Net Result for the Year to Net Cash

Inflow/(Outflow) from Operating ActivitiesInflow/(Outflow) from Operating Activities


Yarrawonga Health


30 June 2012

57

Note 16: Financial Instruments

(a) Financial Risk Management Objectives and Policies

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Investments in Equities and Managed Investment Schemes

- Payables (excluding statutory payables)

- Accommodation Bonds

Categorisation of financial instruments

Carrying Carrying

Amount Amount

2012 2011

$'000 $'000

Financial Assets

Cash and Cash equivalents 683 437

Designated as Fair Value through Profit and Loss 7,142 6,386

Loans and Receivables 577 719

Total Financial Assets (i)

8,402 7,542

Financial Liabilities

Payables 495 958

Other Financial Liabilities

- Accommodation Bonds 6,593 5,645

- Other 1 1

Total Financial Liabilities (ii)

7,089 6,604

Yarrawonga Health's principal financial instruments comprise of :

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

credit recoverable)

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

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

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

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

statements.

The main purpose in holding financial instruments is to prudentially manage Yarrawonga Health's financial

risks within government policy parameters.

Details of each categories in accordance with AASB 139, shall be disclosed either on the face of the balance

sheet or in the notes.


Yarrawonga Health


30 June 2012

58

Note 16: Financial Instruments (continued).

(b) Credit risk

Credit quality of contractual financial assets that are neither past due not impaired

Financial Other Total

Institutions

(AAA credit

rating)

2012 $'000 $'000

Financial Assets

Cash and Cash Equivalents 683 - 683

Receivables

- Trade debtors - 143 143

- Other receivables (i) - 435 435

Other Financial Assets

- Term Deposit 7,142 - 7,142

Total Financial Assets 7,825 577 8,402

2011

Financial Assets

Cash and Cash Equivalents 437 - 437

Receivables

- Trade debtors - 303 303

- Other receivables - 416 416


- Term Deposit 6,386 - 6,386

Total Financial Assets 6,823 719 7,542

Provision of impairment for contractual financial assets is recognised when there is objective evidence

that the Health Service will not be able to collect a receivable. Objective evidence includes financial

difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes

in debtor credit ratings.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets

recorded in the financial statements, net of any allowances for losses, represents Yarrawonga Health’s

maximum exposure to credit risk without taking account of the value of any collateral obtained.

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

owing from Victorian Government and GST input tax credit recoverable).

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

deposits, non-statutory receivables and available for sale contractual financial assets. The Health

Service’s exposure to credit risk arises from the potential default of a counter party on their

contractual obligations resulting in financial loss to the Health Service. Credit risk is measured at fair

value and is monitored on a regular basis.

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

main debtor is the Victorian Government. For debtors other than the Government, it is the Health

Service’s policy to only deal with entities with high credit ratings of a minimum Triple-B rating and to

obtain sufficient collateral or credit enhancements, where appropriate.

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

mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which

are mainly cash at bank. As with the policy for debtors, the Health Service’s policy is to only deal with

banks with high credit ratings.


Yarrawonga Health


30 June 2012

59


(b) Credit risk (continued)

Ageing analysis of Financial Asset as at 30 June

Consol'd Not Past Due Impaired

Carrying and Not Less than 1-3 Months 3 Moths - 1-5 Years Financial

Amount Impaired 1 month 1 Year Assets

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

Financial Assets

Cash and Cash Equivalents 683 683 - - - - -

Receivables (i)

- Trade debtors 143 57 - 8 9 69 -

- Other receivables 435 206 - 72 96 61 -

Other financial assets

- Term Deposit 7,142 7,142 - - - - -

- Shares in Other Entities - - - - - - -

Total Financial Assets 8,403 8,088 - 80 105 130 -

2011

Financial Assets

Cash and Cash Equivalents 437 437 - - - - -

Receivables

- Trade debtors 303 225 - 12 57 9 -

- Other receivables 416 297 - 18 87 14 -


- Term Deposit 6,386 6,386 - - - - -

- Shares in Other Entities - - - - - - -

Total Financial Assets 7,542 7,345 - 30 144 23 -

Past Due but Not Impaired

(i) Ageing analysis of financial assets must exclude the types of statutory financial assets (i.e GST input tax credit)

There are no material financial assets which are individually determined to be impaired. Currently Yarrawonga Health does not hold any

collateral as security nor credit enhancements relating to any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they

are stated at the carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets

that are past due but not impaired.


Yarrawonga Health


30 June 2012

60


(c) Liquidity Risk

Maturity analysis of financial liabilities as at 30 June

Carrying Contractual Less than 1-3 3 Months - 1-5 Years

Amount Cash Flows 1 month Months 1 Year

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


Payables 495 495 495 - - -

Borrowings


- Accommodation Bonds 6,593 6,593 231 461 2,077 3,824

- Other 1 1 - - - -

Total Financial Liabilities 7,089 7,089 726 461 2,077 3,824

2011


Payables 958 958 958 - - -


- Accommodation Bonds 5,645 5,645 - 150 500 4,995

- Other 1 1 - - - -

Total Financial Liabilities 6,604 6,604 958 150 500 4,995

Liquidity risk is the risk that the Health Service would be unable to meet its financial obligations as and when they fall due.

Regular cashflow monitoring and forecasting is maintained to ensure sufficient liquidity. Liquidity risk is managed through

regular fortnightly cash grants from the Department of Health. The Health Service also manages its term deposit

maturities so that access to larger amounts are available to call on when necessary for the repayment of accommodation

bonds. Trade payable contracts are entered into in accordance with Yarrawonga Health's policies for authorisation and

suppliers are periodically reviewed. Yarrawonga Health aims to settle all short term payables within 30 days.

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

face of the balance sheet. The Health Service manages its liquidity risk as follows:

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

Maturity Dates

The following table discloses the contractual maturity analysis for Yarrawonga Health's financial liabilities. For interest rates

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

The contractual repayment for Accommodation Bonds is event based (eg. A resident leaving an Residential Aged Care

facility). The maturity is not determined until the event occurs. The maturity dates below are therefore based on

estimates of potential repayment dates.


Yarrawonga Health


30 June 2012

61

Note 16: Financial Instruments (continued)

(d) Market Risk

Currency Risk

There is no exposure to other price risk.

Interest rate exposure of financial assets and liabilities as at 30 June

Weighted

Average Fixed Variable Non-

Effective Interest Interest Interest

Interest Rate Rate Bearing

2012 Rate (%) $'000 $'000 $'000

Financial Assets

Cash and Cash Equivalents 4.09% 683 - 683 -

Receivables(i)

- Trade Debtors - 143 - - 143

- Other receivables - 435 - - 435

Other financial assets - -

- Term Deposit 5.35% 7,142 7,142 - -

8,403 7,142 683 578


Payables(i)

- 495 - - 495

Borrowings - -


- Accommodation Bonds - 6,593 - - 6,593

- Other - 1 - - 1

7,089 - - 7,089

2011

Financial Assets

Cash and Cash Equivalents 2.72% 437 - 437 -

Receivables(i)

- Trade Debtors - 303 - - 303

- Other receivables - 416 - - 416

Other financial assets - -

- Term Deposit 5.70% 6,386 6,386 - -

- Shares in Other Entities - - - -

7,542 6,386 437 719


Payables(i)

- 958 - - 958

Borrowings - -


- Accommodation Bonds - 5,645 - - 5,645

- Other - 1 - - 1

6,604 - - 6,604

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

and GST payable)

Interest Rate Exposure

Other price risk

Yarrawonga Health's exposure's to market risk are primarily through interest rate risk with no exposure to

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

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

Yarrawonga Health currently has no foreign currency risk through it payables as it carries out no purchases

from overseas or in foreign currencies.

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

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

instruments. The Health Service has no interest bearing liabilities at 30 June 2012.

Interest Rate Risk

Carrying

Amount


Yarrawonga Health


30 June 2012

62


(d) Market Risk (continued)

Sensitivity Disclosure Analysis

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

Profit Equity Profit Equity

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

Financial Assets

Cash and Cash Equivalents (i)

683 (7) - 7 -

Receivables (ii)

- Trade debtors 143 - - - -

- Other receivables 435 - - - -


- Term Deposit 7,142 (71) - 71 -

Shares in Other Entities - - - - -


Payables 495 - - - -

Borrowings - - - - -

Other Financial Liabilities (ii)

- Accommodation Bond 6,593 - - - - - Other 1 - - - -

(78) - 77 -

2011

Financial Assets

Cash and Cash Equivalents (i)

437 (4) - 4 -

Receivables (ii)

-

- Trade debtors 303 - - - -

- Other receivables 416 - - - -

Other financial assets -

- Term Deposit 6,386 (64) - 64 -

- Shares in Other Entities - - - - -


Payables 958 - - - -

Borrowings

Other Financial Liabilities (ii)

- Accommodation Bond 5,645 - - - - - Other 1 - - - -

(68) - 68 -

+1%

(ii) The carrying amount excludes types of statutory financial assets and liabilities (i.e. GST input tax credit

and GST payable)

(i) Sensitivity of cash and cash equivalents to a +1% movement in interest rates: [$22,403k*0.07]-

[$22,403k*0.06]=$224k. Similar for a -1% movement in interest rate, impact = $(224k).

Taking into account past performance, future expectations, economic forecasts, and management's knowledge

and experience of the financial markets, the Yarrawonga Health believes the following movements are

'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)

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

instrument held by Yarrawonga Health at year end as presented to key management personnel, if changes in

the relevant risk occur.

Carrying

Amount

Interest Rate Risk

-1%


Yarrawonga Health


30 June 2012

63

Note 16: Financial Instruments (continued)

(e) Fair Value

Comparison between carrying amount and fair value

Carrying Fair Carrying Fair

Amount Value Amount Value

2012 2012 2011 2011

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

Financial Assets

Cash and Cash equivalents 683 683 437 437

Receivables(i)

- Trade Debtors 143 143 303 303

- Other Receivables 435 435 416 416


- Term Deposit 7,142 7,142 6,386 6,386

- Shares in Other Entities - - - - Total Financial Assets 8,403 8,403 7,542 7,542


Payables 495 495 958 958

Borrowings

Other Financial Liabilities(i)

- Accommodation Bonds 6,593 6,593 5,645 5,645

- Other 1 1 1 1 Total Financial Liabilities 7,089 7,089 6,604 6,604

* There is no significant transfer between level 1 and level 2.

** The fair value hierarchy disclosures shall be disclosed by class of financial instrument where class is the

lowest level disclosed in the financial statements or notes and is distinct from a category of financial

instruments as specified in AASB 139 paragraph 9.

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

and GST payable)

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

the same as the carrying amounts.

The Health Service considers that the carrying amount of financial instrument assets and liabilities recorded

in the financial statements to be a fair approximation of the their fair values, because of the short term

nature of the financial instruments and their expectation that they will be paid in full.


Yarrawonga Health


30 June 2012

64

Note 17: Commitments for Expenditure

2012 2011

$'000 $'000

Capital Expenditure Commitments

Payable:

Land and Buildings - 68

Total Capital Commitments - 68

Land and Buildings

Not later than one year - 68

Total - 68

Other Expenditure Commitments

Payable :

Financial services contract 110

Total Other Expenditure Commitments

Not later than one year 55

Later than 1 year and not later than 5 years 55

Later than 5 years -

TOTAL 110

Lease Commitments

Commitments in relation to leases contracted for at the

reporting date:

Operating Leases 7 50

Total Lease Commitments 7 50

Operating Leases

Non-cancellable

Computer Equipment

Not later than one year 7 40

Later than 1 year and not later than 5 years - 9

Sub Total 7 49

Non-cancellable

Photocopier Lease

Not later than one year - 1

Sub Total - 1

TOTAL LEASE COMMITMENTS 7 50

Total Commitments (inclusive of GST) 7 50

less GST recoverable from the Australian Taxation Office (1) (5)

Total Commitments (exclusive of GST) 6 45


Yarraw

on

ga H

ealt

h

No

tes t

o t

he F

inan

cia

l S

tate

men

ts

30 J

une 2

012

65

No

te 1

8:

Op

erati

ng

Seg

men

ts.

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

2012

2011

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

REV

EN

UE

Exte

rnal Segm

ent

Revenue

8,6

46

8,8

43

2,7

31

3,0

42

1,8

93

2,2

17

9

43

1,5

09

1,4

16

1,6

13

15,6

29

17,2

24

To

tal

Reven

ue

8

,64

6

8

,84

3

2

,73

1

3

,04

2

1

,89

3

2

,21

7

9

43

1,5

09

1,4

16

1,6

13

1

5,6

29

1

7,2

24

EX

PEN

SES

Exte

rnal Segm

ent

Expenses

(11,3

90)

(8,4

18)

(2,5

04)

(3,7

67)

(1,6

92)

(2,6

25)

(997)

(1,8

63)

(1,1

45)

(1,8

26)

(17,7

28)

(18,4

99)

To

tal

Exp

en

ses

(1

1,3

90

)

(8

,41

8)

(2

,50

4)

(3

,76

7)

(1

,69

2)

(2

,62

5)

(9

97

)

(1

,86

3)

(1

,14

5)

(1

,82

6)

(1

7,7

28

)

(1

8,4

99

)

Net

Resu

lt f

ro

m o

rd

inary

acti

vit

ies

(2

,74

4)

42

5

2

27

(7

25

)

20

1

(4

08

)

(5

4)

(3

54

)

27

0

(2

13

)

(2

,09

8)

(1

,27

5)

Inte

rest

Incom

e

383

1

95

-

67

3

68

-

33

51

81

438

444

Net

Resu

lt f

or Y

ear

(2

,36

0)

6

20

22

7

(6

58

)

2

05

(3

40

)

(5

4)

(3

21

)

3

21

(1

32

)

(1

,66

1)

(8

31

)

OTH

ER

IN

FO

RM

ATIO

N

Segm

ent

Assets

14,3

84

16,1

79

6,7

17

5,5

65

4,4

82

4,0

89

36

2,7

60

5,3

52

3,0

32

30,9

70

31,6

25

To

tal

Assets

14

,38

4

16

,17

9

6

,71

7

5

,56

5

4

,48

2

4

,08

9

36

2,7

60

5,3

52

3,0

32

3

0,9

70

3

1,6

25

Segm

ent

Lia

bilitie

s

2,8

23

5,2

75

2,1

73

1,8

15

2,4

31

1,3

33

2

57

9

00

3,6

34

9

89

11,3

17

10,3

12

To

tal

Lia

bil

itie

s

2,8

23

5,2

75

2,1

73

1,8

15

2,4

31

1,3

33

25

7

9

00

3,6

34

98

9

11

,31

7

10

,31

2

Acquis

itio

n o

f pro

pert

y,

pla

nt

and e

quip

ment

and inta

ngib

le

assets

7

46

1,2

42

-

132

10

97

-

66

6

72

762

1,6

09

Depre

cia

tion &

am

ort

isation

expense

(1,2

73)

(970)

(271)

(334)

(260)

(245)

(9)

(166)

(101)

(182)

(1,9

14)

(1,8

97)

To

tal

RA

CS

Warrin

a H

oste

l

Ho

sp

ital

Prim

ary &

Co

mm

un

ity

Healt

hK

aran

a N

ursin

g H

om

e

RA

CS

All

aw

ah

Ho

ste

l

RA

CS


Yarrawonga Health


30 June 2012

66

Note 18: Operating Segment (continued)

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

Business Segments Services

Hospital

Residential Aged Care Services (RACS)

- Nursing Home

- Allawah Special Care Hostel

- Warrina Hostel

Primary and Community Health

Geographical Segment

Residential Aged Care Services (Low Care)

Acute InPatient Services and Outpatient Service including

Emergency Attendances and Radiology

Residential Aged Care Services (High Care)

Residential Aged Care Services (Dementia Specific)

Community Health and Home Care Services

Yarrawonga Health operates predominantly in Yarrawonga and District in Victoria. More than 90% of

revenue, net result from ordinary activities and segment assets relate to operations in Yarrawonga &

District in Victoria.

There has been no significant changes in Accounting Policy.

Direct costs and revenues are allocated to the applicable unit. Shared costs are not recharged to

segments. For the purposes of segment reporting, these shared costs have been allocated on the basis

of proportion of external revenue received.


Yarrawonga Health


30 June 2012

67

Note 19: Jointly Controlled Operations and Assets

Name of Entity Principal Activity 2012 2011

% %

Health Rural Health Alliance Information Systems 4.649 4.609

2012 2011

$'000 $'000

Current Assets

Cash and Cash Equivalents 56 33

Receivables 58 99

Other Current Assets 2 3

Total Current Assets 116 135

Non Current Assets

Property, Plant and Equipment 2 4

Total Non Current Assets 2 4

Total Assets 118 139

Current Liabilities

Payables 54 60

Other Liabilities 1 1

Total Current Liabilities 55 61

NET ASSETS 63 78

Equity 63 78

2012 2011

$'000 $'000

Revenues

Revenue from Operating Activities 109 116

Revenue from Non-Operating Activities 2 3

Total Revenue 111 119

Expenses

130 117

Employee Benefits (84) (72)

Other Expenses from Continuing Operations (161) (178)

Expenditure using Capital Income (9) -

Depreciation and Amortisation (2) (2)

Total Expenses (126) (135)

YDHS Share of Profit / (Loss) (15) (16)

Expenses

Output Interest

Yarrawonga Health's interest in assets employed in the above jointly controlled operations and assets is

detailed below. The amounts are included in the financial statements under their respective asset

categories :

Yarrawonga Health's interest in revenues and expenses resulting from jointly controlled operations and

assets is detailed below :


Yarrawonga Health


30 June 2012

68

Responsible Ministers

Governing Boards

Mrs M Hauser (Chair)

Dr J Charles (Senior Vice President)

Mrs J Dight (Junior Vice President)

Mr B Pigdon (Treasurer)

Mr G Nowacki

Mrs P Boucher

Mr D Evans

Mr A Spilva

Mr B Miller

Mr G Page

Mr J Sterkenburg

Accountable Officer

M T Welch (Chief Executive Officer)

Remuneration of Responsible PersonsThe number of responsible persons are

2012 2011

No. No.

Income Band

$100,000 - $109,999 - -

$110,000 - $119,999 - -

$120,000 - $129,999 - -

$130,000 - $139,999 - -

$140,000 - $149,999 - 1

$150,000 - $159,999 1 -

$200,000 - $209,999 - -

$210,000 - $219,999 - -

Total Numbers 1 1

$ 156,605 $ 144,507

Remuneration of Governing Board

The board members of Yarrawonga Health are not remunerated.

Note 20a: Responsible Persons DisclosuresNote 20a: Responsible Persons Disclosures

In accordance with the Ministerial Directions issued by the Minister for Finance uner the In accordance with the Ministerial Directions issued by the Minister for Finance uner the Financial management Act Financial management Act

19941994, the following disclosures are made regarding the responsible persons for the reporting period., the following disclosures are made regarding the responsible persons for the reporting period.

1/7/11 - 30/6/12

1/7/11 - 30/6/12

The Honourable Mary Wooldridge, MLA, Minister for Mental Health 1/7/11 - 30/6/12

Period

1/7/11 - 30/6/12

1/7/11 - 30/6/12

1/7/11 - 30/6/12

1/7/11 - 30/6/12

1/7/11 - 30/6/12

The Honourable David Davis, MLC, Minister for Health and Aging 1/7/11 - 30/6/12

1/7/11 - 30/6/12

Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier

and Cabinet.

1/7/11 - 30/6/12

1/7/11 - 30/6/12

1/7/11 - 30/6/12

Total remuneration received or due and receivable by Responsible Persons

from the reporting entity amounted to:

1/7/11 - 30/6/12


Yarrawonga Health


30 June 2012

69

2012 2011 2012 2011

No. No. No. No.

Income Band

$100,000 - $109,999 - - - -

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

$120,000 - $129,999 - - - -

$130,000 - $139,999 1 - 1 -

Total number of executives 1 - 1 -

Total annualised employee

equivalent (AEE) 1 1

Total amount 131,461$ - 131,461 -

At the date of this report there were no events that have occurred after the Balance Sheet Date that

would have an effect on these statements.

Note 20b: Executive Officer DisclosuresNote 20b: Executive Officer Disclosures

The numbers of Executive Officers, other than ministers and Accountable Officers, and their total

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

relevant income bands. The base remuneration of executive officers is shown in the third and fourth

columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy

payments and retirement benefits.

Note 21: Events Occuring After the Balance Sheet DateNote 21: Events Occuring After the Balance Sheet Date

Total Remuneration Base Remuneration

Remuneration of Executive Officers

Annualised employee equivalent (AEE) is calculated by dividing the total number of ordinary hours

that an employee worked over the reporting period by the total number of full-time working hours per

annuam (this is generally 38 hours per week for 52 weeks per year)


NOTES________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


NOTES________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________


NOTES________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Documents

Report of Operations · 4.4 Major Changes & Factors Affecting Achievement of Operational Objectives 6 4.5 Events Occurring After Balance Sheet Date 6 4.6 Consultancies (under $10,000)