2015-2016 Annual Report - swarh2.com.au · th Annual Report 2015 ... Cert IV Training & Assessment,...

Casterton Memorial Hospital

“A Fully Accredited Healthcare Facility”

2015-2016

108th Annual Report

PHYSICAL

FACILITIES/ASSETS

SERVICES

DEVELOPMENT

GOVERNANCE CORPORATE &

CLINICAL

QUALITY IMPROVEMENT

RISK MANAGEMENT

HUMAN

RESOURCES

Assets & infrastructure review & financing plan for

10- 20 years . ~ 80%

Community / Allied Health Zone connectivity to CMH & Up-grade of East Facility

facia. ~ 20%

New & up-dated Nurse call system installed. ~ 20%

Investigate & report on change to individual A/C units across Res Care &

Acute. ~ 20%

Maximise financial sustainability /

administrative and resource usage. ~ 80%

70%efficiency 100%

Board Member recruitment & ongoing relevant education on Clinical Governance &

Risk. ~ 80%

Business of Aged Care sophistication, finance &

Clinical. 50%

ACHS & National Standards

Accreditation attainment & Aged

Care Acc ~ 100%

reditation.

Risk Management & compliance systems

increased sophistication re: VMIA report. ~ 30%

Implementation E-medication system

10%

Quality improvement evidence map completion.

~ 40%

Map & formalise CMH training systems &

partners. ~ 30%

Succession planning & CMH position needs & assessment report &

plan. ~ 50%

Develop project person on a Sub-

Regional Basis. ~ 60%

Review staff to client ratios seeking

optimum care levels within allocated

funding.

~ 100%~

Expand time frame for access to community

taxi. ~ 50%

Seek additional relevant clinical service roles

through external Travis review. ~ 90%

Expansion of home based service roles.

Working with aged care reforms of maintaining

persons in their own home longer. ~ 10%

Full review required Allied Health & Primary

Care Services. ~ 5%

STRATEGIC OBJECTIVES & KEY PERFORMANCE INDICATORS


CMH Two Year Over-Arching Strategic Plan 2015-2017

Over-arching Strategic Plan 2015—2017 To support the Vision Statement of C.M.H. the following Strategic Objectives and associated KPI’s will need to be achieved;

~

Pursue funded respite care places. ~ 10%

Board retreat/s covering

relevant aspects of this

Objective. ~ 90%

98% Occupancy maintained.~ 100%

Development of private

comprehensive home based

Services & support package. ~ 5%

Marketing strategy

developed for use at determined trigger

points. ~ 0%

Determined Tigg

CMH Management plan for Res Care

information packages and

potential client advice, information

servicing and support. ~ 90%

AGED CARE

SERVICES

Casterton Memorial Hospital 108th Annual Report 2015 – 2016

1

Contents

Strategic Plan Inside front cover

Our Model of Care Page 1

Governing Board, Responsible Officers & Senior Staff Page 2 Demographics & Service Profile Page 3

President’s Report Pages 4 & 5

Our Supportive Community Page 6

Report of Operations

Strategic Priorities – Part A Statement of Priorities Pages 7 to 9

Performance Priorities – Part B & Part C Page 10

Services to our Community Page 11

Statutory Compliance Pages 12 to 15

Finance and Activity Overview Pages 16 & 17

Financials Pages 18 to 70

Disclosure Index Pages 71 & 72

Organisational Chart Inside back cover

Our Model of Care

Casterton Memorial Hospital is classified as a Small Rural Health Service (SRHS) under the Department of Health & Human Services Policy and Guidelines. This classification allows Casterton Memorial Hospital, a Small Rural Health Service, to direct service delivery within our budget which will best meet the needs of our community.

This service and planning decentralisation of the Hospital is important for flexibility from year to year or as circumstances may alter, but also allows at the local level to identify and target community needs.

It is the role of the Board of Management in consultation with the community to utilise information available on our local area to maximise the health gains for our community.

Casterton Memorial Hospital fulfils its mission through provision of acute, residential care and community health/primary care services from its modern facility, as well as services into the home.


2

The Casterton Memorial Hospital is a public health facility established under the Health Services Act 1988. The responsible Ministers are detailed below

Mr Graham Sheppard Board Chair 11

h August, 2016

.

Casterton Memorial Hospital ABN 62 051 291 134

Responsible Ministers Commonwealth Government Australia The Hon Sussan Ley MP, Minister for Health & Aged Care

State Government Victoria The Hon Jill Hennessy, MP Minister for Health, Minister for Ambulance The Hon Martin Foley, MP, Minister for Housing, Disability and Ageing

Hospital Board of Management President Mr. G.

Sheppard

Vice President Mr. P. Green Members Mr. T. Baker (OAM) Mrs. K. Black Mr. G. Cain Mr. R. Dalby Dr. T. Halloran Mr. G. Smith Mrs. .J Kensen Ms. M. Rowe

Audit Committee Mr. O. Stephens - CEO Mrs. K. Black – Chair Mr. G. Sheppard – Independent Member Mrs. B. Toma – Finance Officer Mr. R. Dalby – Independent Member

Visiting Medical Staff Dr. B. S. Coulson: M.B.B.S., D.R.O.G., F.A.C.R.R.M.

Dr. M. Prozesky: M.B., ChB, (South Africa)

Dr. R. Taheri: M.B. (Mashad Uni Iran)

Dr. S. Ansari: M.B.B.S. (Army Medical College – Pakistan)

Dr. Y. Zhang: M.B. (Uni of Med Sciences – Guangzhou)

Dr. L. Thompson: BMBS FRACGP (Flinders University)

Dr. T. N. Halloran: B.D., B.Sc. (Hons)

Mr. P. H. Tung: M.B., B.S., F.R.A.C.S.

Mr. S. Clifforth: M.B., B.S., F.R.A.C.S.

Mr. R. H. Moore: M.A.(Camb.), MB., BCHIR., S.R.C.S.

Dr. G. Coggins: M.B., B.S., F.R.A.C.P.

Dr. C. de Kievit: M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.

Dr. K. Fielke: M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.

Dr. J. D. Muir: M.B., ChB, D.A., F.R.C.A.

Dr. T. J. Hodson: M.B., M.B.S., F.R.A.N.Z.C.O.

Dr. S. Perry: G.P. Anaesthesia F.R.A.C.G.P., B.M.B.S. (Flinders),

B.S.C., D.C.H.

Emeritus Dr.A. F. Floyd: M.B., B.S., D.Obst, R.C.O.G.

Principal Officers Chief Executive Officer Mr. O. P. Stephens: B.Bus., A.C.H.S.E.

Manager Nursing Services Ms. M.A. Betson: N.P.,R.N., R.M., Cert. Critical Care, Nurse Immuniser, Cert IV Training & Assessment, MNsg.MNP,FACN,

Infection Control/ AHS Mrs. H. Gill: R.N, Cert Infection Control & Sterilisation MACN

Nurse Unit Manager Acute Ward/AHS/Education Officer Mrs. J. Coulter: R.N.,R.M., Cert IV Training& Assessment

Nurse Unit Manager Acute Ward/AHS Mr. S. Gill: R.N, Cert Aged Care

Nurse Unit Manager Residential Care Mrs. K. Sealey: R.N., Cert IV in Frontline Management, MACN

Nurse Unit Manager Primary & Community Care Ms. A. Pekin: R.N., Nurse Immuniser, Grad Cert Diabetes Ed., BA., Grad DipEd (Psychology)

Night Nurse in Charge /Quality Improvement

Mrs. H. Dillon: R.N.,R.M.Grad Cert Ad Nsg Practice (Rural Remote)

After Hours Supervisors Mrs. S. Dehnert: R.N., R.M., IBCLC , Nurse Immuniser, Grad Dip

Child Maternal Health Mrs. A. Jenkins: R.N., Grad Dip Palliative Care, Grad Cert Ad Nsg

Practice (Rural Remote), Grad Cert Gerentology

Mr. S. Bryan: R.N. B.N. Grad Cert Ad Nsg (Emergency Nursing)

Mr. M. Makore: R.N., B.N. Grad Cert (Rural & Remote)

Programmed Activity Group Co-ordinator Mrs Bernadette Bryan: E.N. Cert IV in Leisure & Lifestyle

Administrative & Finance Officer Mrs. B. Toma

Health Information / Quality Improvement Mrs. H. Rees: Clinical Coder

Catering Services Supervisor Mr. M. Nolte: Trade Cooking, Cert IV Workplace Training &

Assessment

Environmental Services In Charge Ms J. East

Maintenance Coordinator / Safety Mr. S. Zippel: Trade Carpenter/Builder

Meals on Wheels Coordinator Ms. V. Ross


3

Casterton Memorial Hospital - Small Rural Health Service (SRHS)

Demographics and Service profile

Casterton Memorial Hospital was established in 1908 and is situated in the northern sector of the Glenelg Shire within the township of Casterton. Nestled amongst rolling hills and river red gums of the Glenelg River valley, it is located on the Glenelg Highway, 359 kilometres west of Melbourne and 42 kilometres east of the South Australian border.

The Shire has a total population base of 19,520 and Casterton rural north has a catchment population of 3,500. Our catchment area includes the townships of Digby, Merino and Sandford and the surrounding rural localities. Casterton Memorial Hospital provides services to all within its population base as well as neighbouring shires.

As a Small Rural Health Service, the hospital is provided flexibility in its funding base to ensure that the services provided directly to our community are within budget and will best meet the needs of our community. The Board utilises local area information and community input to plan for and provide the most appropriate care and intervention options for our local catchment area to maximise health gains and status for our community.

The Hospital provides a range of acute health, aged residential care and primary healthcare services incorporating 15 medical/surgical inpatient beds, operating theatre, 2 bay urgent care centre, 2 dialysis chairs and 30 bed residential care facility ‘Glenelg House’. The Hospital also provides an extensive range of allied and primary healthcare personnel and programs along with visiting consultant services. All of these services are provided from our facility ensuring effective triaging and access of best care in best possible time for our patients and clients.

The Board of Management and employees at the Casterton Memorial Hospital are committed to providing strong and efficient health and community services to meet the needs and expectations of the community it serves.

Strategic planning Casterton Memorial Hospital strategic plan 2015-2017 can be found inside the front cover of this publication, or visit our website www.castertonmemorialhospital.com.au


4

President & Executive’s Report It is with great pleasure,

on behalf of the Casterton

Memorial Hospital Board

of Management and staff,

I present to you our 108th

Annual Report.

The 2015/16 year has

been a busy and

rewarding year for CMH

in all areas of its diverse

services and the

management and governance of the organisation to

instil that level of person centred care we seek to

achieve for all our patients, residents and clients.

I commend the 108th Annual Report to you as a

testimony to another strong and successful year for

all our Team at CMH.

Financial Sustainability:

CMH has been able to support service demands

and its Model of Care to our community and still

produce a moderate surplus.

This year CMH achieved a surplus before capital

and specific items of $75,550. This financial

performance is a result of sound financial

management, responsible reporting and budget

monitoring. Our positive result was strengthened

by control of our salary & wage expense,

maintaining other operating expenses to within

budget and a consistent revenue flow. Our

residential care occupancy rate of 99.91% has been

a positive contribution. Set targets for acute DVA

activity has resulted in a recall position, however

in spite of budgetary pressures we have maintained

consistent acute and primary care service activity.

CMH maintains a solid balance sheet with a

current asset ratio of 1.33% with adequate cash to

meet current liabilities.

Community Services

CMH continues to provide very active care to our

community through District Nursing Service,

Home Maintenance, Meals on Wheels and its

active Community Health service and programs.

Our Specialist Visiting services and Allied Health

personnel also continue a strong level of service

and commitment to our Community.

Governance

CMH has fulfilled close to 100% of its Statement

of Priorities with the State Department of Health &

Human Services; our contract between

Government and ourselves in return for funding

levels set.

The Board have worked hard on its two year 2015-

2017 Strategic Plan and is making sound progress

on many of the deliverables set out therein.

Deemed achievement levels of these KPI's can be

seen on the inside cover.

The Board has also processed and governed the

implementation of many improvements during the

year including, and not limited to;

Strengthened Partnerships with Barwon

Southwest Health agencies for improved service

provision and efficiency development in how

services are provided;

Twenty Year Asset & Facility Condition

Report - providing advice on replacement needs

of our facility; car park development completed;

Interior carpet replacement–ongoing program;

Electronic Health Record - management and

development;

Aged Care Accreditation – achieved;

Board Education - Clinical Governance;

Dementia Awareness program- training for all

staff - Dementia community fun run;

I-Procurement policy development and

compliance;

Risk Management - continued development;

Board Recruitment - two new board members

in Mrs Julie Kenson and Ms Merridy Rowe.

These are but some of the highlights of the Board

and Management work during the 2015/16 period.

The CMH Team:

In achieving the above results as well as an

efficient and effective working environment, CMH

has a workforce across Catering, Environmental,

Maintenance, Administration and Nursing services

which truly provide exceptional work in all their

varied roles. The Board of Management wish to

publicly acknowledge this through this 108th

Annual Report.

Mr Graham Sheppard Board Chair


5

I wish to also recognise the exceptional work by

the nursing team under Mary-Anne Betson,

Manager Nursing Services, in the field of

education for student nurses, nurse graduates and

work experience personnel. This is another scope

of service our team manages, and one that is little

known by the public.

CMH will continue to be relevant with the skills

and services we provide and we do this with close

working partnerships with other health services,

universities and organisations across our region

and interstate.

To our Medical Officers, Dr Brian Coulson, Dr

Greta Prozesky and team, your 24/7 support to

CMH and our community is to be applauded and

we look forward to your ongoing recruitment for

the future.

To our community, your contribution to

fundraising and volunteer tasks and associated

support to CMH is to be commended. Special

mention is noted of the Murray to Moyne team for

its continuing success in fundraising for CMH. To

all other contributors, no matter how small or

large, your input is all very much appreciated and

needed.

Finally to my fellow Board Members and the

Executive Management team of Owen and Mary-

Anne; your input, vision and support of CMH for

and on behalf of our community is to be

commended. The future for CMH will continue to

be progressive while we all team together as a

cohesive unit and work in collaboration with our

partners across the Barwon Southwest Region.

In conclusion I commend the 108th Annual Report

to you the Community and request your ongoing

support of the Casterton Memorial Hospital and its

hard working team.


h August, 2016

Car park redevelopment

‘before and after’


6

Our Supportive Community Casterton and district community members, businesses, service groups and fundraising committees continue to support the activities, planning and development of our facility. This support is very much valued and reinforces our strong community spirit. During the 2015/2016 financial year our community and fundraising committees have contributed $36,648 to our facility to assist with maintaining our modern well equipped hospital, aged care facility and community health development. We also acknowledge and appreciate the many donations received from families, community members, staff and estates. Volunteers provide purposeful activities and roles, and as such are greatly appreciated by staff and the community we serve. Their

contribution extends to activities, including delivery of Meals on Wheels, bus driving, visiting, outings, entertainment and diversional & lifestyle activities. Our volunteers assist us to meet the needs of our community and foster community connections for our residents and their families. The Hospital also appreciates the input and contributions from the businesses and the broader community through our community surveys, questionnaires and Hospital Card Program. This community spirit contributes to Casterton Memorial Hospital being a proud facility and also supports our continual effort to provide the best quality services to meet the changing needs of our community. The Board of Management sincerely thanks all Casterton Memorial Hospital supporters for their generous, tireless and invaluable support during 2015/2016.

Burston, Sir S.G.W.

Collins, Mrs B

Collins, Mr D.

Cowland, Mr R.

Edge, Mr E.

Flanders, Mrs E.

Floyd, Dr. A. F.

McKinnon, Mrs C.

Moffatt, Mrs M.

Nicol, Mr R.

Ross, Mrs J. (OAM)

Sandow, Mr P. J.

Simson, C. R. & K. L.

Squire, D.

Thompson, Mrs R. G.

Recognised for Service and dedication

to Casterton Memorial Hospital

Acknowledging our Life Governors

Acknowledging 2015/16 donationsFundraising Committee

CMH Hospital Social Club 1,000.00

CMH Ladies Auxiliary 3,100.97

CMH Murray to Moyne 16,326.20

CMH Hospital Card Program 4,700.00

CMH staff 978.60

Friends of Glenelg House 1,000.00

Community Member Support

In Memory of Mr Basil Stafford 150.00

In Memory of Mr Stuart Cain 160.00

In Memory of Mr Joe Davis 75.00

In Memory of Mr Dallas Cook 200.00

In Memory of Mrs Lorna Davis 320.00

In Memory of Mrs Dawn Anson 350.00

In Memory of Mrs Lynn (Bates) Waters 175.00

In Memory of Mr Gill Sanders 25.00

In Memory of Mr Norm Lamb 300.00

Casterton Rotary 119.50

Hamilton Bridge Club 250.00

Geoff Sinclair 450.00

Anonymous 898.70

Laurence Stokes 10.00

David Widdicombe 100.00

Caroline Thomas 19.50

Joyce Edwards 500.00

John Coxon 5.00

E V MacDonald $50.00

Estates

Bequest Mary Thurza Carey 2,000.00

Equity Trustees - Estate John MacPherson 2,100.00

Equity Trustees - Estate Louise Henty 485.00

Equity Trustees - Estate William Health 800.00

Total Donations 36,648.47

Gifts in Kind:Ginn Family – Laptop Compuer

Ray Marks – Patchwork quilts


7

Casterton Memorial Hospital - Report of Operations – 2015-2016 The Casterton Memorial Hospital conducts its activities with compliance to many Government Acts, Regulations and Standards. It is a legislative requirement that we provide, where applicable, specific information in support of our compliance.

Statement of Priorities – Part A Strategic priorities – 2015/16 `

Statements of Priority (SoP) are the formal funding and monitoring agreements between the Victorian Small Rural Health Services and the Secretary for Health & Human Services. Agreements are in accordance with section 26 of the Health Services Act 1988.

In 2015-16 Casterton Memorial Hospital achieved the following outcomes of the Government’s strategic priorities:

Priority Action Deliverable Measurable outcome

Patient Experience & Outcomes

Drive improved health outcomes through a strong focus on patient centred care in the planning, delivery and evaluation of services and the development of new models for putting patients first.

Implement an organisation wide approach to Advance Care Planning, including a system for identifying, documenting and/or receiving Advance Care plans in partnership with patients, carers and substitute decision makers so that peoples wishes for future care can be activated when medical decisions need to be made.

Strengthen the response of the health service to family violence including implementing interventions, processes and systems to prevent, identify and respond appropriately to family violence at an individual and community level.

Patient Centred Care Steering Committee to review existing patient service model for improved patient focus and collaboration with their care.

Sustained positive feedback from VHES survey across all areas of care provision.

Capture data on patients /residents admitted and discharged with ACP

Increase CMH trained ACP consultants

Capture data on the number of patients/residents who have their wishes met according to the End of Life care pathway.

Continue to collaboratively plan the development and use of end of life care pathways with the local community through the Advance Care Planning group.

Provide information brochures to patients, and clients of Casterton Memorial Hospital on identifying and reporting instances of family violence.

Provide education to clinical service staff in acute, UCC and community health settings on identifying and appropriately responding to suspected

Revised Policy Dec 15

ACP Brochure and resources revised and Consumer appraised.

Staff ACP education completed Dec 2015 in response to updated legislation.

Follow up through SWARH re; VHES training.

Overall Experience rating of 100% for Jan-Sept 15 VHES results.

YTD Internal inpatient surveys indicate 100% satisfaction with care expectations.

Organisational Dementia training across facility Dec/Jan 2015/16

Nursing survey re; ACP – Staff knowledgeable about their role. And confident undertaking plans.

TRAK Icon for ACP in place Nov 15.

Increased ACP consultants trained.

Data available on discharge/ transferred with ACP.

ACP brochures revised.

Nursing staff ACP education completed Dec 15.

End of Life pathway implemented 2015.

Family satisfaction with End of Life care through Palliative Care surveys – continue to be positive

Nursing ACP survey May 16 shows nurses confident in roles.

Leaflets currently being drafted

Implementation plan in place for commencement Jun/Jul 2016.

Assessment form development for Urgent Care presentations.


8

instances of family violence.

Governance, Leadership and Culture

Demonstrate an organisational commitment to OH&S including mental health & wellbeing in the workplace. Ensure accessible and affordable support services are available for employees experiencing mental ill health. Work collaboratively with the DHHS and professional bodies to identify and assess systematic issues of mental health amongst the medical professionals.

Monitor and publicly report incidents of OH&S violence. Work collaboratively with DoHHS to develop systems to prevent the occurrence of Occupational violence.

Promote a positive workplace culture and implement strategies to prevent bullying and harassment in the workplace. Monitor trends of complaints of bullying and harassment and identify and address organisational units exhibiting poor workplace culture and morale.

Undertake an annual Board assessment to identify and develop board capacity to ensure all board members are well equipped to effectively discharge their responsibilities.

CMH to review existing staff assistance policy to ensure it captures the full range of mental health issues and supports required.

Collaborate with South West Mental Health Team to provide ongoing Mental Health strategies for staff.

Collect detailed data for all occupational violence and aggression incidents.

Consider for each above a risk matrix and possible mitigation actions.

Establish a workplace Mentor program and incorporate into CMH’s Human Resources policy.

Utilising Victorian Public Sector People Matter Survey benchmark information target areas for improvement and re-education. Report to CMH Board of Management.

Utilise the DHHS Board Annual assessment tool to identify areas needing further development.

Policy being reviewed

MOU in place

Education sessions being planned.

Staff Policy in this regard being reviewed currently.

Ongoing follow up of incidents and collaboration between staff has resulted in reduced incidents of this nature being reported so far for 2015/16.

Categorization of data ready for QOC reporting.

Mentor program implemented 2014. Feedback from both mentor / mentee is very positive. Noted reduction in harassment reports noted in workforce data (People Matters) reports.

Mentor Feedback mechanism to be updated.

Updated Orientation programs in 2015

Improved staff satisfaction noted within Public Sector People Matters survey.

Board evaluation reviewed in line with Department’s Assessment proforma and undertaken – May 2016.

Positive feedback from Board Members following last Board retreat 2015. Now annual.

Safety and Quality

Ensure management plans are in place to prevent, detect and contain Carbapenem Resistant Enterocacteriaceriaceae as outlined in Hospital Circular 02/15 (June 2015).

Implement effective antimicrobial stewardship practices and increase awareness of antimicrobial resistance, its implications and actions to combat it through effective communication, education

Ensure nursing and medical staff are provided with up to date education and training on CRE and infection control measures.

Adopt pathology testing guidelines.

Review Infection control policies in collaboration with sub-regional Infection Control Officer.

In support of improved antimicrobial awareness CMH will reaffirm existing stewardship policies and practices through a planned education programme for

Annual CMH I.C. plan.

Screening through TRAK electronic Health Record being co-ordinated through SWARH sub committee.

New TRAK alerts for CRE and CPE implemented June 2016

Revision of CMH assessment forms to include screening queries.

Annual IC Management Plan update.

Noted improvement in clinician compliance for prescribing Antibiotics according to guidelines from 63% in 14/15 to 79% YTD.

Ongoing staff education through Orientation and Annual education.


9

and training.

Ensure that emergency response management plans are in place, regularly exercised and updated including trigger activation and communication arrangements.

nursing and medical staff.

Review the emergency

management response plan and ensure staff are familiar with it.

Place emergency response management on the occupational health and safety meeting as a standard agenda item.

Implemented departmental Fire Emergency practice exercise checklists in 2014/15 which were very well received.

Checklists updated in response to staff feedback from exercises 2015

Desktop Code Brown exercises undertaken regularly. Standown checklist implemented following last desktop exercise 2015.

OH&S Agenda template being updated.

Access

Implement integrated care approaches across health & community support services to improve access and responses for disadvantaged Victorians.

Progress partnerships with other health services to ensure patients can access treatments as close to where they live when it is safe to do so, making the most efficient use of available resources across the system.

Contribute to the provision of additional services to achieve these targets milestones and objectives of the National Partnership on Adult Public Dental Services.

With the Southern Grampians Glenelg Primary Care Partnership explore opportunities to develop programmes for disadvantaged Victorians, improving access and responses for this cohort. i.e. Telehealth options, community transport and referrals.

Collaborate with Barwon Health with respect to the expansion of the tele-health project for small rural facilities.

Work with the South West Healthcare Dental Service to progress the delivery of public dental health services at CMH.

Collaboration with newly appointed Primary Health Care Network.

MOU with PCP

Established service with small numbers of Telehealth Services undertaken so far.

Continued promotion of Telehealth resource occurs to local community

Local representation on Barwon Regional Telehealth project.

Public Dental Service commenced November 2015.

Processes set up and demand is growing for the service.

Usage data available.


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Part B: Performance Priorities:Key Performance Indicator

Safety & Quality Performance 2015/16 Target 2015/16 Actual

Compliance with NSAQHS Standards Accreditation Full Compliance Achieved

Compliance with the Commonwealth Aged Care Accreditation Standards Full Compliance Achieved

Cleaning Standards Full Compliance Achieved

Compliance with the Hand Hygiene Australian Program 80% 86%

Percentage of healthcare workers immunised for influenza 75% 98%

Submission of infection surveillance data to VICNISS¹ Full Compliance Achieved

Patient experience and outcome performance 2015/16 Target 2015/16 Actual

Victorian Healthcare Experience Survey - data submission Full Compliance Achieved

Victorian Healthcare Experience Survey

- patient submission Qrt 1 95% positive experience 100%


- patient submission Qrt 2* 95% positive experience Full Compliance*


- patient submission Qrt 3* 95% positive experience Full Compliance*

* Less than 42 were received for the period due to relative s ize of Health Service

Government, leadership and culture performance 2015/16 Target 2015/16 Actual

People Matter Survey - percentage of staff with a positive

response to safety culture questions 80% 94%

Financial sustainability performance

Finance 2015/16 Target 2015/16 Actual

Operating result ($M) 0 0.08

Trade Creditors 60 33

Patient Fee debtors 60 38

Asset Management 2015/16 Target 2015/16 Actual

Asset Management plan Full Compliance Achieved

Adjusted current asset ratio 0.7 1.33

Days of available cash 14 150.7

¹ VICNISS i s the Victorian Hospita l Acquired Infection Survei l lance System.

Part C: Activity and Funding

Funding TypeSmall Rural

Small Rural Primary Health (Service Hours)

Small Rural Residential Care (Bed Days)

Small Rural HACC (Service Hours)

2015-16 Activity Achievement

10,970

545

9,212

80%

86%

79%

83%

86%

60%

65%

70%

75%

80%

85%

90%

2015 (1) 2015 (2) 2015 (3) 2016 (1) 2016 (2)

CMH Hand Hygiene - Total Compliance Rates

Total Hand Hygiene Compliance Results CMH Acceptable Level (80%)

99.9199.87

99.92

99.65

99.92

99.5

99.6

99.7

99.8

99.9

100.0

2015/16 2014/15 2013/14 2012/13 2011/12

Residential Aged Care Annual Occupancy % over 5 yr period


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Services to our Community

Other Service facilitated from Casterton Memorial Hospial through private practitioners include: ~ Audiology ~ Child Maternal Health ~ Visiting Medical Specialists ~ Radiology Services ~ Ophthalmology Services ~ Podiatry Services

~ Psychology Services ~ Drug & Alcohol ~ Physiotherapy ~ Speech Therapy ~ Occupational Therapy ~ Telehealth Services

Hospital 2014/15 2015/16

Total Multistay Inpatient Separations* 263 254Total Same Day Separations* 444 410Bed Days* 2,867 2,900Total Wies 375.58 361.49% Occupancy Rate Staffed Beds 52% 53%Average Length of Stay ** 2.8 3.2% Public Bed Days 77% 87%% Private Bed Days 23% 13%Obstetrics / Gynaecology 18 9Operations / Procedures 130 0Urgent Care Presentations 1,460 1,307

Glenelg House Residential CareResidents Accommodated 42 37 Bed Days 10,936 10,970 Average Daily Occupancy 30 29.97 % Occupancy Rate Full Year 99.87% 99.91%

Planned Activity GroupAttendances 1,284 993 District NurseHome Visits 4,998 5,852Kilometres Travelled 18,522 23,076

Community HealthAttendance (contacts) 545 353

Allied HealthPhysiotherapy Attendance *** 2,220 933Speech Therapy Attendance *** 0 0Dietetics *** 104 77Occupational Therapist *** 64 125Meals ProducedHospital / Residential Care / Other 64,098 68,167Meals on Wheels (HACC Assessed) 4,266 4,082Home Maintenance Program (HACC ServiceNumber of Clients 95 104Number of visits 1,234 906

Number of Hours 1,283 912* Does not include Newborn transfers

** Excludes Nursing Home Type

*** Includes inpatients

5852

1135

353

993

Primary Care Activity / Visits 2015/16

District Nursevisits

Allied Healthvisits

CommunityHealth visits

Day Centre visits

2533

377

1307

298

Facility Bedday Activity 2015/16

Acute PublicInpatient

Acute PteInpatient

A&E Treatments

Residential Care

99.5

99.55

99.6

99.65

99.7

99.75

99.8

99.85

99.9

99.95

2015/16 2014/15 2013/14 2012/13 2011/12

Residential Aged Care Annual Occupancy % over 5 yr period


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Workforce Information Casterton Memorial Hospital is committed to the provision of a safe and healthy work environment for all employees, contractors and visitors

What our employees have to say (extracts from the Victorian Public Sector Commission – People Matter Survey)

“I am very happy with my work situation here and I find that there is a very high level of professional support provided. I believe there are many employees that go beyond their roles to help provide patients with the best possible care available.”

“I very much enjoy my working environment. It is physically a very pleasant place to work and I enjoy the company of my fellow colleagues.”

“My work is stimulating, challenging and never boring.”

Workforce data During the 2015/16 year Casterton Memorial Hospital employed a total of 115 employees, 40 full-time and 75 part time across the labour categories as detailed in the following table. Statistics provided are consistent with information provided in CMH’s MDS/F1 datasets which are reported on a monthly

basis to the DHHS. Condition of employment is that Casterton Memorial Hospital employees will adhere to the values as outline in the Code of Conduct for Victorian Public Sector Employees 2015 and CMH Code of Conduct Policy.

Occupational Violence CMH actively supports zero tolerance towards aggression and violence in the workplace. We will achieve this by establishing an environment that promotes identification of

hazards, assessment and control of risks, preventative training and education, reporting and effective management of all incidents, as well as the adoption of harm minimising practices.

Industrial Relations Casterton Memorial Hospital reports no lost days in 2015/2016 through industrial accidents or disputes.

Equal Employment Opportunity – Merit & Equity The Board of Management at Casterton Memorial Hospital has a firm commitment to ensure equity principles in the workforce are maintained. Human Resource policies and practices give due consideration to public

authorities ‘Code of Conduct’ and the Equal Employment Opportunity (EEO) Act, 1995. The facility provides extensive opportunities for employee professional development.

Occupational Health & Safety Occupational Health & Safety forms an integral part of the day to day operation of Casterton Memorial Hospital. The Safe Environment / OH&S Committee consist of representatives from each of the designated work group areas as well as management representatives.

Labour Category

2015 2016 2015 2016

Nursing 43.67 44.22 42.67 43.09

Administration and Clerical 8.57 8.94 8.37 9.16

Hotel and Allied Services 23.02 23.15 22.94 23.37

JUNE 2016

Current Month FTE

JUNE 2016

YTD FTE

Occupational violence statistics 2015-16

1. WorkCover accepted claims with an occupational violence cause per 100 FTE 0

2. Number of accepted WorkCover claims with lost time injury with an occupational

violence cause per 1,000,000 hours worked 0

3. Number of occupational violence incidents reported 0

4. Number of occupational violence incidents reported per 100 FTE 0

5. Percentage of occupational violence incidents resulting in a staff injury, illness or condition 0


13

The CMH committee meets quarterly to discuss and address any concerns or issues that may arise and undertake regular inspections of the workplace. All Designated Work Group Representatives undergo the initial 5 Day Course for OH&S Representatives along with regular refresher courses. Employees are encouraged to act and work in a safe manner and to report any incidents or near misses. Through the operation of the Safe Environment/OH&S Committee, Minimal Handling Committee, employee education and incident reporting, through VHIMS, Casterton Memorial Hospital is continuing to ensure the safety of employees, patients and visitors.

The Casterton Memorial Hospital Work-Safe current performance rating is 0.768944 which is 23.1% better than the industry average. A total of 2 workcover claims were registered during 2015/16 year.

Staff training –‘How to extinguish fires’

Carers Recognition Act 2012 The Act recognises, promotes and values the role of people in care relationships. Casterton Memorial Hospital understands the different needs of persons in care relationships and that care relationships bring benefits to the patients, their carers and to the community. Casterton Memorial Hospital takes all practicable measures to ensure that its employees, agents and carers have an awareness and understanding of the care relationship principles and this is reflected in our commitment to a model of patient and family centred care and to involving carers in the development and delivery of our services.

Freedom of Information The Victorian Freedom of Information Act 1982 (FOI Act) provides the right for members of the public to obtain information held by the Casterton Memorial Hospital and consumers are entitled to access their medical record through the Freedom of Information process. ten (10) Freedom of Information requests were processed this Financial Year. Applications are to be directed to the nominated Officer, Mr Owen Stephens. A fee, plus charges for associated costs may apply in accordance with the Act.

Protective Disclosure Act 2012 (the Act) The Casterton Memorial Hospital has policies and procedures in place to enable total compliance with the Act, and provides a safe environment in which disclosures can be made, people are protected from reprisal and the investigation process is clear and provides a fair outcome. The privacy of all individuals involved in a disclosure is assured of protection at all times. Casterton Memorial Hospital is committed to the principals of the Act and at no time will improper conduct by the Casterton

Memorial Hospital or any of its employees be condoned.

Disclosures Since the introduction of the Act in 2012 there have been no disclosures received and no notification of disclosures to the Ombudsman or any other external agency.


14

682000

684000

686000

688000

690000

692000

2014 2015 2016

Comparative Power UsageKw's

National Competition Policy Casterton Memorial Hospital has implemented competitive neutral pricing principles to all contracts for services provided, to ensure a level playing field is maintained in accordance with National Competition Policy including the requirements of the Government policy statement, Competitive Neutrality Policy, Victoria; and subsequent reforms.

Contract Disclosures There were no contracts commenced or completed during this reporting period to which the Victorian Industry Participation Policy (VIPP) Act 2003 applied.

Details of consultancies (under $10,000) In 2015-2016 there was one consultancy where the total fees payable to the consultants was less than $10,000. The total expenditure incurred during 2015-2016 in relation to this consultancy was $2330 (excl. GST).

Nil Consultancies (over $10,000) during 2015/16

Building Act 1993 Casterton Memorial Hospital complies with the building and maintenance provisions of the Building Act 1993 in accordance with the Minister for Finance Guidelines Building Act 1993/Standards for Publicly Owned Buildings/November, 1994.

Information & Communication Technology ICT Expenditure

Environmental Management

Casterton Memorial Hospital’s Environmental Management Committee formulates, with consultation with employees and consumers, strategies to implement projects, monitor usuage and reduce the environmental impact of the facility.

The Hospital is committed to implementing sound environmental practices in all areas of its operations and recognises it is essential, all energy/water users and producers of waste,

manage these aspects to minimise both the impact on the environment and cost. The Hospital also recognises it has a responsibility to develop with employees attitude and skills that will result in a long-term commitment to the nurturing and ongoing sustainability of environmental strategies.

The Committee meets bi-monthly and reports directly to the Board of Management.

ICT expenditure incurred during 2015-16 is $305,078 (ex GST) as detai led below.

Amounts shown below do not include Shared assets as reported in Note 25 of Accounts

Business As Usual (BAU) ICT

expenditure

Non‑Business As Usual (non‑BAU) ICT

expenditure

Operational

expenditure (ex gst)

Capital expenditure (ex

gst)

Totals (ex gst)(Total=Operational expenditure and Capital

Expenditure)

($'000) ($'000)

305 0 305 0

54000

57000

60000

63000

66000

69000

72000

75000

2014 2015 2016

Comparative LPG Gas UsageLt's


15

Additional Information In compliance with the requirements of FRD 22C Standard Disclosures in the Report of Operations, details in respect of the items listed below have been retained by Casterton Memorial Hospital and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

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

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

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

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

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

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

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

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

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

Risk Management Framework & Processes. I, Owen Stephens, certify that the Casterton Memorial Hospital has complied with Ministerial Direction 4.5.5– Risk Management Framework and processes. The Casterton Memorial Hospital Audit Committee has verified this.

Owen P Stephens Chief Executive Officer Casterton 11

h August 2016

Data Integrity I, Owen Stephens, certify that the Casterton Memorial Hospital has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. The Casterton Memorial Hospital has critically reviewed these controls and processes during the year.

Owen P Stephens Chief Executive Officer Casterton 11

h August 2016

Responsible Bodies Declaration In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for the Casterton Memorial Hospital for the year ending 30 June, 2016.


th August, 2016


16

Finance & Activity Overview

The financial statements of account for the year ended 30 June, 2016 have been completed in accordance with the Australian Audit and Accounting Standards and the Financial Management Act 1994.

Net Result Operating Result This year Casterton Memorial Hospital’s Comprehensive Operating Statement reports a surplus before capital and specific purposes items of $75,550. Contributing factors to this positive result include 99.91% residential care occupancy and maintenance of operating expenditure to budget across all levels. This $75K surplus is down 47% when compared to our 2015 result of $161K but has been achieved in a year when Acute DVA activity targets have been unachievable, resulting in a $105.5K recall by the DHHS. Increased Residential Care revenue has offset the Acute activity recall. Private patient and non-inpatient activity has remained stable and consistent with prior year. The increase in Residential Care Accommodation Bonds held has generated increased interest earning capacity.

Salaries & wages have been contained to a 4.4% increase and includes the take-up of the provision for outstanding EBA award increases and LSL liability revaluation against the DHHS revised model.

Other non-employee operating expenses have been maintained within budget.

Entity/Comprehensive Result Entity Comprehensive Result of ($761,728) is a further 44% decrease on the prior year result. This result is impacted by the unfunded depreciaton expense, reduced capital revenue by $132,059 and the LSL revaluation expense ($40,999).

Liquidity Cash holdings combined with current assets remaining in excess of current liabilities by $1,368,633 confirms a stable liquidy position for Casterton Memorial Hospital as at 30 June 2016. Our current asset ratio of 1.33 is slightly down on the 1.4 reported in 2014/15. Casterton Memorial Hospital has consistently over the past 5 years recorded an asset ratio well above the .7 Department benchmark.

Cash Management CMH cash has been well managed with cash on hand as at 30 June 2016 totalling $4,696,963 and includes $1,568,927 in accommodation bonds; a total cash increase over the reporting period of $528,693.

2016 2015 $ Var % Var

Acute Revenue 3,760,905 3,688,791 72,114 2.0

Res identia l Care 3,310,404 3,223,897 86,508 2.7

Community Health 446,848 436,001 10,847 2.5

Interst earned 124,415 101,207 23,208 22.9

CMH Iniatiated 291,473 287,026 4,447 1.5

Totals 7,934,044 7,736,921 197,123 2.5

Comparative revenue - ex CMH share of SWARH & PCP

2016 2015 $ Var % Var

Salaries & Wages 5,344,293 5,172,059 172,233 3.3LSL 228,778 147,354 81,425 55.3Superannuation 532,173 533,845 -1,672 -0.3Workcover 53,345 47,461 5,883 12.4Totals 6,158,588 5,900,719 257,869 4.4

Comparative employee expenditure - ex CMH share of SWARH & PCP

1.2

1.3

1.3

1.4

1.4

1.5

1.5

1.6

2016 2015 2014 2013 2012

Current Asset RatioDepartment expected .7%

%

CMH Funds Bonds Total$ $ $

Opening Balance 2,772,271 1,396,000 4,168,271

Closing Balance 3,128,037 1,568,927 4,696,964

Increase/(Decrease) 355,766 172,927 528,693

Cash Movement


17

Significant Changes The only significant change effective in our 2015/16 year as compared to our 2014/15 relates to Acute targets set by the Department and our achievement against these targets.

Other changes have been to our administrative processes including the amalgamation with other SWARH south west health services to the newly adopted shared Central Supply Warehouse. Purchasing through Central Supply creates the ability to consolidate purchasing and warehousing with economic benefits.

CMH has successfully progressed to full electronic batch payments for all creditors with benefits to staff resources and more timely payments to our suppliers.

Overall the 2015/16 year, although challenging with unknown EBA implications and a recall position on activity, has been positive. We have managed expenditure well while at the same time maintained our on going capital equipment upgrade and facilty maintenance. We have increased our graduate nurse program and intake with other external training facilities while continuing to support our own employees, both clinical and non clincial with training opportunities and resources. This we have achieved while maintaining a consistent and balanced range of services across all program areas. Casterton Memorial Hospital is positively looking forward to new challenges, including management of nurse EBA outcomes within budget, while continuing to service our community well and sustain our positive position throughout 2016/17.

5 Year Comparative Report

B. G. Toma Finance Officer 11

th August 2016

Year 2015/16 Target Achieved Var Var $

DVA inpatient Episode 20 13.5 -6.5 -30904

DVA NHT inpatient days 295 0 -295 -83485

TAC Inpatient Episode 0 0 0 0

Dialysis 27 33 6 8,874

Top-up/(Recall) -105,515

Year 2014/15 Target Achieved Var Var $

DVA inpatient Episode 18 18 0 0

NHT inpatient days 295 274 -21 -6000

TAC Inpatient Episode 3 0 -3 -3000

Dialysis 15 32 17 80,000

Top-up/(Recall) 71,000

Activity to Target - Significant Change

Five Year Financial Comparative Statement

2016

$000

2015

$000

2014

$000

2013

$000

2012

$000

Total Revenue 9,147 8,934 9,044 9,045 8,746

Total Expenditure 9,908 9,456 9,518 9,688 9,177

Share of Comprehensive Income Joint Venture 1 7 3 - -

Net result for the year -762 -529 -477 -644 -431

Asset Revaluation (increments/decrements) 9,656 9,656 9,656 1,406 -

Retained Surplus/Accumulated Deficit 4,125 4,886 5,415 5,892 6,536

Total Assets 28,658 28,465 27,470 18,409 17,435

Total Liabilities 4,736 3,782 2,258 2,377 2,165

Net Assets 23,922 24,683 25,212 16,033 15,271

Total Equity 23,922 24,683 25,212 16,033 15,271


18


Financial Report 2015 - 2016


Board Member’s Accountable Officer’s and Chief Finance & Accounting Officer’s Declaration

The attached financial statements for Casterton Memorial Hospital have been prepared in accordance with Direction 4.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including Interpretations, and other mandatory professional reporting requirements. We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2016 and the financial position of Casterton Memorial Hospital at 30 June 2016. At the time of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate. We authorise the attached financial statements for issue on this day.

Mr. G. Sheppard Mr O.P. Stephens Mrs B.G. Toma

Board President Chief Executive Officer Chief Finance &

Accounting Officer

Casterton Casterton Casterton

11th

August, 2016 11th

August, 2016 11th

August, 2016


19


20


21

Casterton Memorial Hospital Annual Report 2015/2016

Note Total Total

2016 2015

$ $

Revenue from Operating Activities 2 8,705,014 8,392,357

Revenue from Non-operating Activities 2 124,414 91,110

Employee Expenses 3 (6,358,497) (6,084,599)

Non Salary Labour Costs 3 (314,901) (332,887)

Supplies & Consumables 3 (471,555) (440,744)

Joint Venture Expenses 3 (550,450) (537,894)

Administrative Expenses 3 (227,633) (136,857)

Other Expenses 3 (829,917) (783,182)

Share of net result of associates and joint ventures

accounted for using the equity method 10 (925) (6,560)

Net Result Before Capital &

Specific Items

75,550 160,744

Capital Purpose Income 2 318,045 450,104

Depreciation 4 (1,103,414) (1,101,792)

Finance Costs 5 (10,910) (10,064)

(720,729) (501,008)

Other economic flows included in net result

Revalution of Long Service Leave 14 (40,999) (27,889)

NET RESULT FOR THE YEAR (761,728) (528,897)

Other comprehensive income

Net fair value revaluation on Non

Financial Assets - -

COMPREHENSIVE RESULT FOR THE YEAR (761,728) (528,897)

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


Comprehensive Operating Statement

For the Year Ended 30 June 2016


22


Note Total Total

2016 2015

$ $

Current Assets

Cash and Cash Equivalents 6 4,779,526 4,242,178

Receivables 7 822,068 317,565

Inventories 8 51,447 75,621

Total Current Assets 5,653,041 4,635,364

Non-Current Assets

Receivables 7 449,034 336,541 Investments Accounted for using the Equity 10 26,895 27,820 Method

Property, Plant & Equipment 9 22,478,711 23,415,608

Investment Properties 11 50,000 50,000

Total Non-Current Assets 23,004,640 23,779,969

TOTAL ASSETS 28,657,681 28,465,333

Current Liabilities

Payables 12 1,016,817 378,649 Provisions 14 1,625,424 1,562,017 Borrowings 13 73,240 68,480

Other Liabilities 15 1,568,927 1,389,385

Total Current Liabilities 4,284,408 3,398,531

Non-Current LiabilitiesProvisions 14 317,588 216,533 Borrowings 13 134,147 167,003

Total Non-Current Liabilities 451,735 383,536

TOTAL LIABILITIES 4,736,143 3,782,067

NET ASSETS 23,921,538 24,683,266

EQUITY

Property, Plant & Equipment Revaluation Surplus 16a 19,796,870 19,796,870

Contributed Capital 16b 2,293,608 2,293,608

Accumulated Surpluses 16c 1,831,060 2,592,788

TOTAL EQUITY 16d 23,921,538 24,683,266

Commitments 19Contingent Assets and Capital Liabilities 21

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

Balance SheetAs at 30 June 2016



23

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24


Note Total Total

2016 2015

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 6,603,703 6,691,076

Patient and Resident Fees Received 1,090,580 1,042,958

Donations and Bequests Received 36,649 33,371

GST Received from/(paid to) ATO 7,770 (1,585)

Interest Received 82,183 91,110

Other Receipts 636,397 1,032,396

Employee Expenses Paid (6,235,035) (6,220,831)

Non Salary Labour Costs (109,750) (99,131)

Payments for Supplies & Consumables (800,373) (819,281)

Fee for Service Medical Officers (205,151) (233,756)

Other Payments (656,495) (850,285)

Cash Generated from Operations 450,478 666,042

Capital Grants from Government 61,600 28,700

NET CASH

INFLOW/(OUTFLOW) FROM

OPERATING ACTIVITIES

17512,078 694,742

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Non-Financial Assets (167,908) (502,561)

Proceeds from sale of Non-Financial Assets 13,636 -

NET CASH

INFLOW/(OUTFLOW) FROM (154,272) (502,561)

NET INCREASE/(DECREASE) IN CASH HELD 357,806 192,181

CASH AND CASH EQUIVALENTS AT

BEGINNING OF PERIOD 2,852,793 2,660,612

CASH AND CASH EQUIVALENTS

AT END OF PERIOD 6 3,210,599 2,852,793

This Statement should be read in conjunction with the accompanying notes

Cash Flow Statement For the Year Ended 30 June 2016



25

Notes to Financial Statements TABLE OF CONTENTS

Note 1: Summary of Significant Accounting Policies 26 - 40

Note 2: Analysis of Revenue By Source 41

Note 2b: Net Gain/ (Loss) on Disposal of Non-Financial Assets 42

Note 3: Analysis of Expenses By Source 43

Note 3a: Analysis of Expense And Revenue By Internally Managed and Restricted Specific Purpose Fund 44

Note 4: Depreciation And Amortisation 44

Note 5: Finance Costs 44

Note 6 Cash and Cash Equivalents 44

Note 7: Receivables 45

Note 8: Inventories 45

Note 9: Property, Plant & Equipment 46 - 52

Note 10: Investment Accounted For Using The Equity Method 53

Note 11: Investment Properties 54

Note 12: Payables 55

Note 13: Borrowings 55&56

Note 14: Provisions 57

Note 15: Other Liabilities 58

Note 16: Reserves 58

Note 17: Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities 59

Note 18: Financial Instruments 59-65

Note 19: Commitments For Expenditure 66

Noee 20: Finance Leases 66

Note 21: Contingent Assets And Contingent Liabilities 66

Note 22: Remuneration Of Auditors 66

Note 23: Ex-Gratia Expenses 66

Note 24: Operating Segments 67

Note 25: Jointly Controlled Operations And Assets 68

Note 26a: Responsible Persons Disclosures 69

Note 26b: Executive Officer Disclosures 69

Note 27: Events Occuring After The Balance Date 70

Note 28. Superannuation 70

Note 29: Alternative Presentation Of Comprehensive Operating Statement 71&72


26

Note 1: Summary of significant accounting policies

These annual financial statements represent the audited general purpose financial statements for Casterton Memorial Hospital for the period ending 30 June 2016. The report provides users with information about the Health Services’ stewardship of resources entrusted to it.

(a) Statement of compliance These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable AASs, which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements. The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury & 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 Casterton Memorial Hospital on 11

th August,

2016

(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 2016, and the comparative information presented in these financial statements for the year ended 30 June 2015. The going concern basis was used to prepare the financial statements. These financial statements are presented in Australian dollars, the functional and presentation currency of the Health Service. The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid. The financial statements are prepared in accordance with the historical cost convention, except for:

non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;

derivative financial instruments, managed investment schemes, certain debt securities, and investment properties after initial recognition, which are measured at fair value with changes reflected in the comprehensive operating statement (fair value through profit or loss); and

available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised (i.e. other comprehensive income – items that may be reclassified subsequent to net result).

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

Judgements, estimates and assumptions are required to be made about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to:

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

superannuation expense (refer to Note 1(g);

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)); and

Consistent with AASB 13 Fair Value Measurement, Casterton Memorial Hospital determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant FRDs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities


27

Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, Casterton Memorial Hospital has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. In addition, Casterton Memorial Hospital determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Valuer-General Victoria (VGV) is Casterton Memorial Hospital’s independent valuation agency. Casterton Memorial Hospital in conjunction with VGV monitors the changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required.

(c) Reporting entity

The financial statements include all the controlled activities of the Casterton Memorial Hospital. Its principal address is: 63-69 Russell Street, Casterton Victoria 3311. A description of the nature of Casterton Memorial Hospital’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements. Objectives and funding Casterton Memorial Hospital’s overall objective is to meet health and well-being needs of their community by delivering a comprehensive range of high quality, innovative and valued health services as well as improve the quality of life to Victorians. Casterton Memorial Hospital is predominantly funded by accrual based grant funding for the provision of outputs.

(d) Principles of consolidation

Intersegment Transactions Transactions between segments within the Casterton Memorial Hospital have been eliminated to reflect the extent of the Casterton Memorial Hospital’s operations as a group. Associates and joint ventures Associates and joint ventures are accounted for in accordance with the policy outlined in Note 1(j) financial assets. Jointly controlled assets or operations Interests in jointly controlled assets or operations are not consolidated by Casterton Memorial Hospital, but are accounted for in accordance with the policy outlined in Note 1(j) Financial Assets.

(e) Scope and presentation of financial statements

Fund Accounting The Casterton Memorial Hospital operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. The Casterton Memorial Hospital’s Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds. Services Supported By Health Services Agreement and Services Supported By Hospital and Community Initiatives Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and Human Services and includes Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth. Residential Aged Care Service The Casterton Memorial Hospital Glenelg House Residential Aged Care Service operations are an integral part of the Casterton Memorial Hospital and shares its resources. An apportionment of land and buildings has been made based on floor space. The results of the two operations have been segregated based on actual revenue earned and expenditure incurred by each operation in Note 2 & Note 3 to the financial statements. 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 Casterton Memorial Hospital. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, expenditure using capital purpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of these items is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The ‘net result before capital & specific items’ is used by the management of Casterton Memorial Hospital, the Department of Health and Human Services and the Victorian Government to measure the ongoing operating performance of Health Services. Capital and specific items, which are excluded from this sub-total, comprise:


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capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets. It also includes donations of plant and equipment (refer Note 1 (f)). Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.

impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), which have been recognised in accordance with Notes 1 (i)

depreciation and amortisation, as described in Note 1 (g); assets provided or received free of charge (refer to Notes 1 (f) and (g)); and 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.

‘Other economic flows; are changes arising from market re-measurements. They include:

gains and losses from disposals of non-financial assets;

revaluations and impairments of non-financial physical and intangible assets;

re-measurement arising from defined benefit superannuation plans; and

fair value changes of financial instruments. Balance sheet Assets and liabilities are categorised either as current or non-current (non-current being mainly those assets or liabilities expected to be recovered/settled more than 12 months after reporting period), are disclosed in the notes where relevant. Statement of changes in equity The statement of changes in equity presents reconciliations of each non-owner and owner changes in equity from opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income. Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows. Rounding All amounts shown in the financial statements are expressed to the nearest dollar unless otherwise stated. Minor discrepancies in tables between totals and sum of components are due to rounding.

(f) Income from transactions

Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Casterton Memorial Hospital and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance. Amounts disclosed as revenue are where applicable, net of returns, allowances and duties and taxes. Government Grants and other transfers of income (other than contributions by owners) In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are recognised as income when the Health Service gains control of the underlying assets irrespective of whether conditions are imposed on the Health Service’s use of the contributions. Contributions are deferred as income in advance when the Health Service has a present obligation to repay them and the present obligation can be reliably measured. Indirect Contributions from the Department of Health and Human Services

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

Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 05/2013.

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. Revenue from commercial activities Revenue from commercial activities are recognised at the time invoices are raised. Donations and Other Bequests Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as the specific restricted purpose surplus. Interest Revenue Interest revenue is recognised on a time proportionate basis that takes in account the effective yield of the financial asset, which allocates interest over the relevant period. Sale of investments The gain/loss on the sale of investments is recognised when the investment is realised. Fair value of assets and services received free of charge or for nominal consideration Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another Health Service or agency as a consequence of a restructuring of administrative arrangements.


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In the latter case, such transfer will be recognised at carrying amount. Contributions in the form of services are only recognised when a fair value can be reliably determined and the service would have been purchased if not received as a donation. Other income Other income includes non-property rental, dividends, forgiveness of liabilities, and bad debt reversals.

(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;

leave entitlements;

termination payments;

workcover premiums; and

superannuation expenses which are reported differently depending upon whether employees are members of defined benefit or defined contribution plans.

Defined contribution superannuation plans In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

Defined benefit superannuation plans The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based upon actuarial advice. Employees of the Casterton Memorial Hospital are entitled to receive superannuation benefits and the Casterton Memorial Hospital contributes to both the defined benefit and defined contribution plans. The defined benefit plan(s) provide benefits based on years of service and final average salary. The name and details of the major employee superannuation funds and contributions made by the Casterton Memorial Hospital are disclosed in Note 28: Superannuation.

Depreciation All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives are depreciated (i.e. excludes land assets held for sale, and investment properties). Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management. Intangible produced assets with finite lives are depreciated as an expense from transactions on a systematic basis over the asset’s useful life. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives, residual value and depreciation method for all assets are reviewed at least annually, and adjustments made where appropriate. This depreciation charge is not funded by the Department of Health and Human Services. Assets with a cost in excess of $1000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives. The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.

2016 2015

Buildings

-Structure & Shell/Building Fabric 2 to 40 years 2 to 40 years

-Site Engineering Services Central Plant 2 to 40 years 2 to 40 years

Central Plant

-Fit Out 2 to 25 years 2 to 25 years

-Trunk Reticulated Building Systems 2 to 30 years 2 to 30 yeras

Plant & Equipment 8 to 10 years 8 to 10 years

Medical Equipment 8 to 10 years 8 to 10 years

Computers and Communication 1 to 4 years 1 to 4 years

Furniture and Fitting 8 to 10 years 8 to 10 years

Motor Vehicles 1 to 5 years 1 to 5 years


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As part of the buildings valuation, building values were separated into components and each component assessed for its useful life which is represented above. Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset’s useful life. Finance costs Finance costs are recognised as expenses in the period in which they are incurred. Finance costs include: – finance charges in respect of finance leases recognised in accordance with AASB 117 Leases.

Other operating expenses Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include: Supplies and consumables Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed. Fair value of assets, services and resources provided free of charge or for nominal consideration Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at its carrying amount. 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.

(h) Other economic flows included in net result Other economic flows are changes in the volume or value of assets or liabilities that do not result from transactions. Net gain/ (loss) on non-financial assets Net gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Revaluation gains/ (losses) of non-financial physical assets Refer to Note 1(j) Revaluations of non-financial physical assets. Net gain/ (loss) on disposal of non-financial assets Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying amount of the asset at the time. Net gain/ (loss) on financial instruments Net gain/ (loss) on financial instruments includes:

o realised and unrealised gains and losses from revaluations of financial instruments at fair value; o impairment and reversal of impairment for financial instruments at amortised cost (refer to Note 1 (j)); and o disposals of financial assets and de-recognition of financial liabilities

Revaluations of financial instrument at fair value Refer to Note 1 (i) Financial instruments. Share of net profits/ (losses) of associates and jointly controlled entities, excluding dividends. Refer to Note 1 (d) Basis of consolidation. Other gains/ (losses) include: The revaluation of the present value of the long service leave liability due to changes in the bond interest rates, this will also include the impact of changes related to the impact of moving from the 2004 long service leave model to the 2008 long service leave model.

(i) Financial instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the Casterton Memorial Hospital’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. The following refers to financial instruments unless otherwise stated. Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Loans and receivables category includes cash and deposits (refer to Note 1(j)), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables. Held-to-maturity investments If the Health Service has the positive intent and ability to hold nominated investments to maturity, then such financial assets may be classified as held-to-maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses.


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The Health Service makes limited use of this classification because any sale or reclassification of more than an insignificant amount of held-to-maturity investments not close to their maturity, would result in the whole category being reclassified as available-for-sale. The Health Service would also be prevented from classifying investment securities as held-to-maturity for the current and the following two financial years. The held-to-maturity category includes certain term deposits and debt securities for which the Health Service concerned intends to hold to maturity. Financial liabilities at amortised cost Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit or loss over the period of the interest-bearing liability, using the effective interest rate method. Financial instrument liabilities measured at amortised cost include all of the Health Service’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

(j) Assets

Cash and Cash Equivalents Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash with an insignificant risk of changes in value. For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities on the balance sheet. Receivables Receivables consist of: - contractual receivables, which includes mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables; and - statutory receivables, which includes predominantly amounts owing from the Victorian Government and Goods and

Services Tax (“GST”) input tax credits recoverable. Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment. Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified. Investments and other financial assets Hospital investments must be in accordance in Standing Direction 4.5.6 – Treasury Risk Management. Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Investments are classified in the following categories:

financial assets at fair value through profit or loss;

held-to-maturity;

loans and receivables; and

available-for-sale financial assets. The Casterton Memorial Hospital classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition. Casterton Memorial Hospital assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment. Inventories Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It excludes depreciable assets. Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition. The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the


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tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired. Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis. Cost for all other inventory is measured on the basis of weighted average cost. Property, plant and equipment All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and accumulated impairment loss. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government are transferred at their carrying amount. More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 9 Property, plant and equipment. The initial cost for non-financial physical assets under finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best uses. Land and buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and accumulated impairment loss. Plant, equipment and vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and accumulated impairment loss. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned. Leasehold improvements The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements. Revaluations of non-current physical assets Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103F Non-current physical assets. This revaluation process normally occurs at least every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset’s carrying amount and fair value. Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly in equity to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result. Revaluation decrements are recognised in ‘other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Revaluation surplus is not normally transferred to accumulated funds on de-recognition of the relevant asset. In accordance with FRD 103F, Casterton Memorial Hospital’s non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required. Investment properties Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the health services. Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Health Service. Subsequent to initial recognition at cost, investment properties are revalued to fair value, determined annually by independent valuers. Fair values are determined based on a market comparable approach that reflects recent transaction prices for similar properties. Investment properties are neither depreciated nor tested for impairment. Rental revenue from leasing of investment properties is recognised in the comprehensive operating statement in the periods in which it is receivable on a straight line basis over the lease term. Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period. Disposal of non-financial assets Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement. Refer to note 1(h) – ‘comprehensive income’. Impairment of non-financial assets Goodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired. All other non-financial assets are assessed annually for indications of impairment, except for:


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inventories;

investment properties that are measured at fair value;

non-current physical assets held for sale; and

assets arising from construction contracts. Investments accounted for using the equity method An associate is an entity over which Casterton Memorial Hospital exercises significant influence, but not control. The investment in the associate is accounted for using the equity method of accounting. Under the equity method for accounting, the investment in the associate is recognised at cost on initial recognition, and the carrying amount is increased or decreased in subsequent years to recognise Casterton Memorial Hospital’s share of the profits or losses of the associates after the date of acquisition. Casterton Memorial Hospital’s share of the associate’s profit or loss is recognised in Casterton Memorial Hospital’s net result as ‘other economic flows’. The share of post-acquisition changes in revaluation surpluses and any other reserves, are recognised in both the comprehensive operating statement and the statement of changes in equity. The cumulative post acquisition movements are adjusted against the carrying amount of the investment, including dividends received or receivable from the associate. Investments in joint operations In respect of any interest in joint operations, Casterton Memorial Hospital recognises in the financial statements:

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

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

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

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

its expenses, including its share of any expenses incurred jointly. De-recognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

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

the Health Service retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or

the Health Service has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset; or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Health Service has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Health Service’s continuing involvement in the asset. Impairment of financial assets At the end of each reporting period Casterton Memorial Hospital assesses whether there is objective evidence that a financial asset or group of financial asset is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment. Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed. Bad debt written off by mutual consent and the allowance for doubtful debts are classified as ‘other comprehensive income’ in the net result. The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has been less than its cost price for a period of 12 or more months, the financial asset is treated as impaired. In order to determine an appropriate fair value as at 30 June 2016 for its portfolio of financial assets, Casterton Memorial Hospital obtained a valuation based on the best available advice using an estimated valuation method provided by a reputable financial institution. This value was compared against valuation methodologies provided by the issuer as at 30 June 2016. These methodologies were critiqued and considered to be consistent with standard market valuation techniques. In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets. Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes: - realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value

through profit or loss or held-for-trading; - impairment and reversal of impairment for financial instruments at amortised cost; and - disposals of financial assets and de-recognition of financial liabilities.

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


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(k) Liabilities

Payables Payables consist of:

contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to the Health Service prior to the end of the financial year that are unpaid, and arise when the Health Service becomes obliged to make future payments in respect of the purchase of those goods and services. The normal credit terms for accounts payable are usually Nett 30 days.

statutory payables, such as goods and services tax and fringe benefits tax payables. Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract. Provisions Provisions are recognised when the Health Service has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision. When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. Employee benefits This provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.

Wages and salaries, annual leave and accrued days off Liabilities for wages and salaries, including non-monetary benefits and annual leave are all recognised in the provision for employee benefits as ‘current liabilities’, because the health service does not have an unconditional right to defer settlements of these liabilities. Depending on the expectation of the timing of settlement, liabilities for wages and salaries and annual leave are measured at:

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

Present value – if the health service does not expect to wholly settle within 12 months. Long service leave (LSL) Liability for LSL is recognised in the provision for employee benefits. Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of this current LSL liability are measured at:

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

Present value – if the health service does not expect to wholly settle within 12 months. Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow. Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment. The health service recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. On-costs related to employee expense Provision for on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits.

Superannuation liabilities The Casterton Memorial Hospital 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. De-recognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.


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When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an expense in the consolidated comprehensive operating statement.

(l) Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. For service concession arrangements, the commencement of the lease term is deemed to be the date the asset is commissioned. All other leases are classified as operating leases. Operating leases Entity as lessor Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments. In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a reduction of rental income over the lease term, on a straight-line basis unless another systematic basis is more appropriate of the time pattern over which the economic benefit of the leased asset is diminished. Entity as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet. Casterton Memorial Hospital recognises the leasing arrangements for local area network equipment, workstations and peripherals (purchased through group buying arrangements with SWARH) as finance leases. Finance leases are regarded as a financial accommodation and under the Section 30 of Health Services Act 1988, the Minister for Health and the Treasurer must declare a registered funded agency to be an approved borrower for the purposes of this section. An approved borrower may, with the approval of the Minister and the Treasurer, obtain financial accommodation, whether within or outside Victoria, secured or arranged in a manner and for a period approved by the Treasurer. Casterton Memorial Hospital has been declared an approved borrower in relation to these finance leases.

(m) Equity

Contributed capital Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119A Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions to or distributions by owners that have been designated as contributed capital are also treated as contributed capital. Transfers of net assets arising from administrative restructurings are treated as contributions by owners. Transfers of net liabilities arising from administrative restructures are to go through the comprehensive operating statement. Property, plant & equipment revaluation surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets.

(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 19) at their nominal value and are inclusive of the GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.

(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.

(p) Contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.


36

(q) Goods and Services Tax (“GST”)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the 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.

(r) AASs issued that are not yet effective

Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2016 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable. As at 30 June 2016, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Casterton Memorial Hospital has not and does not intend to adopt these standards early.

Standard/Interpretation 1 Summary

Applicable for annual

reporting periods

beginning on

Impact on public sector entity

financial statements

AASB 9 Financial Instruments The key changes include the simplified

requirements for the classification and

measurement of financial assets, a new

hedging accounting model and a revised

impairment loss model to recognise

impairment losses earlier, as opposed to

the current approach that recognises

impairment only when incurred.

1 Jan 2018 The assessment has identified that

the financial impact of available

for sale (AFS) assets will now be

reported through other

comprehensive income (OCI) and

no longer recycled to the profit

and loss.

While the preliminary assessment

has not identified any material

impact arising from AASB 9, it will

continue to be monitored and

assessed.

AASB 2010-7 Amendments to

Australian Accounting

Standards arising from AASB 9

(December 2010)

The requirements for classifying and

measuring financial liabilities were added

to AASB 9. The existing requirements for

the classification of financial liabilities and

the ability to use the fair value option

have been retained. However, where the

fair value option is used for financial

liabilities the change in fair value is

accounted for as follows:

The change in fair value attributable to

changes in credit risk is presented in

other comprehensive income (OCI);

and

Other fair value changes are presented in

profit and loss. If this approach

creates or enlarges an accounting

mismatch in the profit or loss, the

effect of the changes in credit risk are

also presented in profit or loss.

1 Jan 2018 The assessment has identified that

the amendments are likely to

result in earlier recognition of

impairment losses and at more

regular intervals.

Changes in own credit risk in

respect of liabilities designated at

fair value through profit and loss

will now be presented within other

comprehensive income (OCI).

Hedge accounting will be more

closely aligned with common risk

management practices making it

easier to have an effective hedge.

For entities with significant

lending activities, an overhaul of

related systems and processes

may be needed.



Standards [Part E Financial

Instruments]

Amends various AASs to reflect the AASB’s

decision to defer the mandatory

application date of AASB 9 to annual

reporting periods beginning on or after 1

January 2018 as a consequence of Chapter

6 Hedge Accounting, and to amend

reduced disclosure requirements.

1 Jan 2018 This amending standard will defer

the application period of AASB 9 to

the 2018-19 reporting period in

accordance with the transition

requirements.


37



reporting periods

beginning on





Standards arising from AASB 9

Amends various AASs to incorporate the

consequential amendments arising from

the issuance of AASB 9.

1 Jan 2018 The assessment has indicated that

there will be no significant impact

for the public sector.

AASB 14 Regulatory Deferral

Accounts 2

AASB 14 permits first-time adopters of

Australian Accounting Standards who

conduct rate-regulated activities to

continue to account for amounts related

to rate regulation in accordance with their

previous GAAP.


there is no expected impact, as

those that conduct rate-regulated

activities have already adopted

Australian Accounting Standards.

AASB 15 Revenue from

Contracts with Customers

The core principle of AASB 15 requires an

entity to recognise revenue when the

entity satisfies a performance obligation

by transferring a promised good or service

to a customer.

1 Jan 2018 The changes in revenue

recognition requirements in

AASB 15 may result in changes to

the timing and amount of revenue

recorded in the financial

statements. The Standard will also

require additional disclosures on

service revenue and contract

modifications.

A potential impact will be the

upfront recognition of revenue

from licenses that cover multiple

reporting periods. Revenue that

was deferred and amortised over a

period may now need to be

recognised immediately as a

transitional adjustment against the

opening returned earnings if there

are no former performance

obligations outstanding.



Standards arising from AASB

15

Amends the measurement of trade

receivables and the recognition of

dividends.

Trade receivables, that do not have a

significant financing component, are to be

measured at their transaction price, at

initial recognition.

Dividends are recognised in the profit and

loss only when:

the entity’s right to receive payment of

the dividend is established;

it is probable that the economic benefits

associated with the dividend will flow

to the entity; and

the amount can be measured reliably.

1 Jan 2017, except

amendments to

AASB 9 (Dec 2009) and

AASB 9 (Dec 2010)

apply from 1 Jan 2018

The assessment has indicated that


for the public sector.



Standards – Effective Date of

AASB 15

This Standard defers the mandatory

effective date of AASB 15 from 1 January

2017 to 1 January 2018.

1 Jan 2018 This amending standard will defer

the application period of AASB 15

to the 2018-19 reporting period in

accordance with the transition

requirements.


38



reporting periods

beginning on





Standards – Clarifications to

AASB 15

This Standard amends AASB 15 to clarify

the requirements on identifying

performance obligations, principal versus

agent considerations and the timing of

recognising revenue from granting a

licence. The amendments require:

A promise to transfer to a customer a

good or service that is ‘distinct’ to be

recognised as a separate performance

obligation;

For items purchased online, the entity is a

principal if it obtains control of the

good or service prior to transferring

to the customer; and

For licences identified as being distinct

from other goods or services in a

contract, entities need to determine

whether the licence transfers to the

customer over time (right to use) or

at a point in time (right to access).



for the public sector, other than

the impact identified in AASB 15.

AASB 16 Leases The key changes introduced by AASB 16

include the recognition of most operating

leases (which are current not recognised)

on balance sheet.


as most operating leases will come

on balance sheet, recognition of

lease assets and lease liabilities

will cause net debt to increase.

Depreciation of lease assets and

interest on lease liabilities will be

recognised in the income

statement with marginal impact

on the operating surplus.

The amounts of cash paid for the

principal portion of the lease

liability will be presented within

financing activities and the

amounts paid for the interest

portion will be presented within

operating activities in the cash

flow statement.

No change for lessors.



Standards – Clarification of

Acceptable Methods of

Depreciation and Amortisation

[AASB 116 & AASB 138]

Amends AASB 116 Property, Plant and

Equipment and AASB 138 Intangible

Assets to:

establish the principle for the basis of

depreciation and amortisation as

being the expected pattern of

consumption of the future economic

benefits of an asset;

prohibit the use of revenue-based

methods to calculate the depreciation

or amortisation of an asset, tangible

or intangible, because revenue

generally reflects the pattern of

economic benefits that are generated

from operating the business, rather

than the consumption through the

use of the asset.


there is no expected impact as the

revenue-based method is not used

for depreciation and amortisation.


39



reporting periods

beginning on





Standards – Equity Method in

Separate Financial Statements

[AASB 1, 127 & 128]

Amends AASB 127 Separate Financial

Statements to allow entities to use the

equity method of accounting for

investments in subsidiaries, joint ventures

and associates in their separate financial

statements.

1 Jan 2016 The assessment indicates that

there is no expected impact as the

entity will continue to account for

the investments in subsidiaries,

joint ventures and associates using

the cost method as mandated if

separate financial statements are

presented in accordance with FRD

113A.



Standards – Sale or

Contribution of Assets between

an Investor and its Associate or

Joint Venture [AASB 10 &

AASB 128]

AASB 2014-10 amends AASB 10

Consolidated Financial Statements and

AASB 128 Investments in Associates to

ensure consistent treatment in dealing

with the sale or contribution of assets

between an investor and its associate or

joint venture. The amendments require

that:

a full gain or loss to be recognised by the

investor when a transaction involves a

business (whether it is housed in a

subsidiary or not); and

a partial gain or loss to be recognised by

the parent when a transaction

involves assets that do not constitute

a business, even if these assets are

housed in a subsidiary.


there is limited impact, as the

revisions to AASB 10 and AASB 128

are guidance in nature.



Standards – Annual

Improvements to Australian

Accounting Standards 2012-

2014 Cycle [AASB 1, AASB 2,

AASB 3, AASB 5, AASB 7,

AASB 11, AASB 110, AASB 119,

AASB 121, AASB 133,

AASB 134, AASB 137 &

AASB 140]

Amends the methods of disposal in

AASB 5 Non-current assets held for sale

and discontinued operations.

Amends AASB 7 Financial Instruments by

including further guidance on servicing

contracts.


when an asset (or disposal group)

is reclassified from ‘held to sale’ to

‘held for distribution’, or vice

versa, the asset does not have to

be reinstated in the financial

statements.

Entities will be required to disclose

all types of continuing

involvement the entity still has

when transferring a financial asset

to a third party under conditions

which allow it to derecognise the

asset.



Standards – Extending Related

Party Disclosures to Not-for-

Profit Public Sector Entities

[AASB 10, AASB 124 &

AASB 1049]

The Amendments extend the scope of

AASB 124 Related Party Disclosures to

not-for-profit public sector entities. A

guidance has been included to assist the

application of the Standard by not-for-

profit public sector entities.

1 Jan 2016 The amending standard will result

in extended disclosures on the

entity's key management

personnel (KMP), and the related

party transactions.



Standards – Recoverable

Amount of Non-Cash-

Generating Specialised Assets

of Not-for-Profit Entities

The standard amends AASB 136

Impairment of Assets to remove

references to using depreciated

replacement cost (DRC) as a measure of

value in use for not-for-profit entities.


there is minimal impact. Given the

specialised nature and restrictions

of public sector assets, the existing

use is presumed to be the highest

and best use (HBU), hence current

replacement cost under AASB 13

Fair Value Measurement is the

same as the depreciated

replacement cost concept under

AASB 136.


40

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2015-16 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. AASB 1056 Superannuation Entities AASB 1057 Application of Australian Accounting Standards AASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments

arising from AASB 14 Regulatory Deferral Accounts only] 2

AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations [AASB 1 & AASB 11]

AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101, AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141]

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]

AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128]

2

AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs [AASB 8, AASB 133 & AASB 1057]

AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128

AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112]

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

Notes:

1. For the current year, given the number of consequential amendments to AASB 9 Financial Instruments and AASB 15 Revenue from Contracts with Customers, the standards/interpretations have been grouped together to provide a more relevant view of the upcoming changes.

2. This Standard or Amendment may not be relevant to Victorian not-for-profit entities when operative.

(s) Category groups

The Casterton Memorial Hospital has used the following category groups for reporting purposes for the current and previous financial years.

Admitted Patient Services (Admitted Patients) comprises all acute and subacute admitted patient services, where services are delivered in public hospitals.

Aged Care comprises a range of in home, specialist geriatric, residential care and community based programs and support services, such as Home and Community Care (HACC) that are targeted to older people, people with a disability, and their carers.

Primary, Community and Dental Health comprises a range of home based, community based, community, primary health and dental services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy and a range of dental health services

Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from the department under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health funded community care units and secure extended care units.

Other Services not reported elsewhere - (Other) comprises services not separately classified above, including: Public Health Services including laboratory testing, blood borne viruses / sexually transmitted infections clinical services, Kooris liaison officers, immunisation and screening services, drugs services including drug withdrawal, counselling and the needle and syringe program, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.


41

Notes To and Forming Part of the Financial Statements


Note 2: Analysis of Revenue by Source

2016 2016 2016 2016 2016

$ $ $ $ $

Government Grants 3,560,691 2,685,056 396,659 - 6,642,406

Indirect contributions by Department of

Health and Human Services 16,182 13,070 1,867 - 31,119

Patient & Resident Fees 146,123 631,887 56,414 - 834,424

Commercial Activities - - - 254,369 254,369

Other Revenue from Operating Activities 496,080 390,789 55,827 - 942,696

Total Revenue from Operating Activities 4,219,076 3,720,802 510,767 254,369 8,705,014

Interest 20,546 58,668 2,465 42,735 124,414

Total Revenue from Non-Operating

Activities 20,546 58,668 2,465 42,735 124,414

Capital Purpose Income 61,600 219,797 - 36,648 318,045

Total Capital Purpose Income 61,600 219,797 - 36,648 318,045

Total Revenue 4,301,222 3,999,267 513,232 333,752 9,147,473

2015 2015 2015 2015 2015

$ $ $ $ $

Government Grants 3,480,165 2,658,013 364,195 - 6,502,373

Indirect contributions by Department of

Health and Human Services 17,276 13,953 1,993 - 33,222

Patient & Resident Fees 157,811 582,581 55,752 - 796,144

Commercial Activities - - - 223,578 223,578

Other Revenue from Operating Activities 436,448 350,518 50,074 - 837,040

Total Revenue from Operating Activities 4,091,700 3,605,065 472,014 223,578 8,392,357

Interest 22,778 18,222 2,733 47,377 91,110

Total Revenue from Non-Operating

Activities 22,778 18,222 2,733 47,377 91,110

Capital Purpose Income 28,700 388,033 - 33,371 450,104

Total Capital Purpose Income 28,700 388,033 - 33,371 450,104

Total Revenue 4,143,178 4,011,320 474,747 304,326 8,933,571

Department of Health / Department of Health and Human Services makes certain payments on behalf of the

Health Service (List). These amounts have been brought to account in determining the operating result for

the year by recording them as revenue and expenses.

Total

Other

Primary

Health Total

Admitted

Patients RAC

Admitted

Patients RAC

Primary

Health Other

Indirect contributions by Department of Health (1 July 2014 - 31 Dec 2014) / Department of Health and

Human Services (1 Jan 2015 - 30 June 2015)


42



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

Total Total

2016 2015

$ $

Proceeds from Disposals of

Non-Financial Assets

Plant and Equipment - -

Motor Vehicles 13,636 -

Total Proceeds from Disposal

of Non-Financial Assets 13,636 -

Less: Written Down Value of

Non-Financial Assets Sold

Plant and Equipment - 4,087

Motor Vehicles 2,316 -

Total Written Down Value of

Non-Financial Assets Sold 2,316 4,087

Net gains/(losses) on Disposal

of Non-Financial Assets 11,320 (4,087)


43



Note 3: Analysis of Expenses by Source

Admitted

Patients RAC

Primary

Health Total

2016 2016 2016 2016

$ $ $ $

Employee Expenses 2,324,898 3,415,740 658,858 6,399,496

Non Salary Labour Costs 221,126 42,199 51,576 314,901

Supplies & Consumables 245,209 198,053 28,293 471,555

Joint Venture Expenses 286,234 231,189 33,027 550,450

Administrative Expenses 118,369 95,606 13,658 227,633

Other Expenses 431,557 348,565 49,795 829,917

Total Expenditure from Operating Activities 3,627,393 4,331,352 835,207 8,793,952

Depreciation (refer note 4) 573,775 463,434 66,205 1,103,414

Finance Costs (Refer note 5) 5,673 4,582 655 10,910

Total Other Expenses 579,448 468,016 66,860 1,114,324

Total Expenses 4,206,841 4,799,368 902,067 9,908,276

Admitted

Patients RAC

Primary

Health Total

2015 2015 2015 2015

$ $ $ $

Employee Expenses 2,220,630 3,262,549 629,309 6,112,488

Non Salary Labour Costs 233,756 44,609 54,522 332,887

Supplies & Consumables 229,186 185,112 26,445 440,743

Joint Venture Expenses 279,705 225,915 32,274 537,894

Administrative Expenses 71,166 57,480 8,211 136,857

Other Expenses 407,254 328,937 46,991 783,182

Total Expenditure from Operating Activities 3,441,697 4,104,602 797,752 8,344,051

Depreciation (refer note 4) 572,931 462,753 66,108 1,101,792

Finance Costs (Refer note 5) 5,233 4,227 604 10,064

Total Other Expenses 578,164 466,980 66,712 1,111,856

Total Expenses 4,019,861 4,571,582 864,464 9,455,907


44



Note 3a: Analysis of Expenses and Revenue by Internally Managed

and Restricted Specific Purpose Funds for Service Supported by

Hospital and Community Initiatives

Total Total Total Total

2016 2015 2016 2015

$ $ $ $

Commercial Activities

Catering 101,347 72,685 144,781 104,282

Laundry 321 523 877 2,006

Property Income 1,233 1,238 49,418 49,799

Research 2,342 6,380 2,342 6,380

Property Maintenance 15,946 17,290 56,951 61,111

Total 121,189 98,116 254,369 223,578

Note 4: Depreciation Total Total

2016 2015

$ $

Depreciation

Buildings 870,353 870,353

Plant & Equipment 33,764 33,282

Medical Equipment 43,477 47,150

Computers and Communication 1,618 3,293

Furniture and Fittings 39,269 34,374

Motor Vehicles 22,169 36,304

Landscaping and Paving 13,007 9,559

Leased Assets - South West Alliance of Rural Health 79,757 67,477

Total Depreciation 1,103,414 1,101,792

Note 5: Finance CostsTotal Total

2016 2015

$ $

Finance Charges on Financial Leases 10,910 10,064

Total Finance Costs 10,910 10,064

Note 6: Cash and Cash Equivalents

Total Total

2016 2015

$'000 $'000

2016 2015

$ $

Cash on Hand 400 400

Deposits at Call 4,779,126 4,241,778

TOTAL 4,779,526 4,242,178

Represented by:

Cash for Health Service Operations 3,128,437 2,779,286

SWARH - Cash at Bank 82,162 73,507

Sub-Total 3,210,599 2,852,793

Cash for Monies Held in Trust

- Cash at Bank 1,568,927 1,389,385

TOTAL 4,779,526 4,242,178

Expense Revenue

For the purposes of the cash flow statement, cash assets includes cash


45



Note 7: ReceivablesTotal Total

2016 2015

$ $

CURRENT

Contractual

Trade Debtors 64,761 56,275

Patient Fees 112,135 114,116

Receivbles - SWARH 599,356 59,418

776,252 229,809

Statutory

DHHS Receivables 13,000 47,817

GST Receivable 32,816 39,939

TOTAL CURRENT RECEIVABLES 822,068 317,565

NON CURRENT

Statutory

449,034 336,541

TOTAL NON-CURRENT RECEIVABLES 449,034 336,541

TOTAL RECEIVABLES 1,271,102 654,106

(a) Ageing analysis of receivables

Please refer to note 18b for the ageing analysis of contractual receivables

(b) Nature and extent of risk arising from receivables

Please refer to note 18b for the nature and extent of credit risk arising from contractual

receivables

Note 8: Inventories

Total Total

2016 2015

$ $

At Cost

Pharmaceuticals 15,715 18,940

Catering Supplies 4,043 14,860

Housekeeping Supplies 1,804 3,235

Medical and Surgical Lines 15,339 25,323

Engineering Stores 6,919 6,479

Administration Stores 4,793 5,487

SWARH - Stores 2,834 1,297

TOTAL INVENTORIES 51,447 75,621

Long Service Leave - Department of

Health/Department of Health and Human Services


46



Note 9: Property, Plant & Equipment(a) Gross carryting amount and accumulated depreciation

Total Total

2016 2015

$ $

Land

Land at Fair Value 260,000 260,000

Total Land 260,000 260,000

Land Improvement

Land Improvements at Fair Value 506,044 491,912

Assets Under Construction 2,850 -

Less Acc'd Depreciation 22,565 9,558

Total Land Improvements 486,329 482,354

Buildings

Buildings at Fair Value 22,799,000 22,799,000

Less Acc'd Depreciation 1,740,706 870,353

Total Buildings 21,058,294 21,928,647

Plant and Equipment

Plant and Equipment at Fair Value 635,965 631,196


Total Plant and Equipment 118,507 130,733

Medical Equipment

Medical Equipment at Fair Value 522,460 520,040


Total Medical Equipment 110,367 151,424

Computers and Communication

Computers and Communication at Fair Value 23,769 23,923


Total Computers and Communication 13,093 14,865

Furniture and Fittings

Furniture and Fittings at Fair Value 631,517 601,886


Total Furniture and Fittings 159,117 159,434

Motor Vehicles

Motor Vehicles at Fair Value 289,448 292,591


Total Motor Vehicles 65,617 52,668

Leased Assets

Computers and Communication 355,624 303,963


Total Leased Assets 207,387 235,483

TOTAL 22,478,711 23,415,608


47



Note 9: Property, Plant & Equipment (Continued)

Buildings Plant & Total

Equipment

$ $ $ $

Balance at 1 July 2014 615,960 22,799,000 597,406 24,012,366

Additions / Transfers 135,953 - 373,168 509,121

Disposals - - (4,087) (4,087)

Revaluation - - - -

Depreciation (note 4) (9,559) (870,353) (221,880) (1,101,792)

Balance at 1 July 2015 742,354 21,928,647 744,607 23,415,608

Additions / Transfers 16,982 - 152,005 168,987

Disposals - - (2,470) (2,470)

Revaluation - - - -

Depreciation (note 4) (13,007) (870,353) (220,054) (1,103,414)

Balance at 30 June 2016 746,329 21,058,294 674,088 22,478,711

Land and buildings carried at valuation

The effective date of the valuation is 30 June 2014

(b) Reconciliations of the carrying amounts of each class of asset.

An independent valuation of the Health Service's land and buildings was performed by the

Valuer-General Victoria to determine the fair value of the land and buildings. The

valuation, which conforms to Australian Valuation Standards, was determined by

reference to the amounts for which assets could be exchanged between knowledgeable

willing parties in an arm's length transaction. The valuation was based on independent

assessments.

Land & Land

Improvements


48



Note 9: Property, Plant & Equipment

(c) Fair value measurement hierarchy for assets as at 30 June 2016

Carrying

Amount as at

30 June 2016

Level 1* Level 2* Level 3

$ $ $ $

Land at Fair Value

Specialised land 260,000 - - 260,000

Land Improvements 486,329 - - 486,329

Total of Land at Fair Value 746,329 - - 746,329

Buildings at Fair Value

Specialised Buildings 21,058,294 - - 21,058,294

Assets Under Construction - - - -

Total of Building at Fair Value 21,058,294 - - 21,058,294

Plant and Equipment at Fair Value

Plant, Equipment and Vehicles at fair value 118,507 - - 118,507

Total Plant and Equipment at Fair Value 118,507 - - 118,507

Medical Equipment at Fair Value

Medical Equipment at Fair Value 110,367 - - 110,367

Total Medical Equipment at Fair Value 110,367 - - 110,367

Computers and Communication at Fair Value

Computers and Communication at Fair Value 13,093 - - 13,093

Total Computers and Communication at Fair

Value 13,093 - - 13,093

Furniture and Fittings at Fair Value

Furniture and Fittings at Fair Value 159,117 - - 159,117

Total Furniture and Fittings at Fair Value 159,117 - - 159,117

Motor Vehicles at Fair Value

Motor Vehicles at Fair Value 65,617 - - 65,617

Total Motor Vehicles at Fair Value 65,617 - - 65,617

Leased Assets

Leased Assets at Fair Value 207,387 - - 207,387

Total Leased Assets at Fair Value 207,387 - - 207,387

TOTAL 22,478,711 - - 22,478,711

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

There have been no transfers between levels during the period.

Fair value measurement at end of

reporting period using:

(ii) Vehicles are categorised to level 3 assets if the depreciated replacement cost is used in estimating the

fair value.


49




(c) Fair value measurement hierarchy for assets as at 30 June 2015

Carrying

Amount as at

30 June 2015

Level 1* Level 2* Level 3

$ $ $ $

Land at Fair Value

Specialised land 260,000 - - 260,000

Land Improvements 482,354 - - 482,354

Total of Land at Fair Value 742,354 - - 742,354

Buildings at Fair Value

Specialised Buildings 21,928,647 - - 21,928,647

Assets Under Construction - - - -

Total of Building at Fair Value 21,928,647 - - 21,928,647

Plant and Equipment at Fair Value

Plant, Equipment and Vehicles at fair value 130,733 - - 130,733

Total Plant and Equipment at Fair Value 130,733 - - 130,733

Medical Equipment at Fair Value

Medical Equipment at Fair Value 151,424 - - 151,424

Total Medical Equipment at Fair Value 151,424 - - 151,424

Computers and Communication at Fair Value

Computers and Communication at Fair Value 14,865 - - 14,865

Total Computers and Communication at Fair 14,865 - - 14,865

Furniture and Fittings at Fair Value

Furniture and Fittings at Fair Value 159,434 - - 159,434

Total Furniture and Fittings at Fair Value 159,434 - - 159,434

Motor Vehicles at Fair Value

Motor Vehicles at Fair Value 52,668 - - 52,668

Total Motor Vehicles at Fair Value 52,668 - - 52,668

TOTAL 23,415,608 - - 23,415,608

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

There have been no transfers between levels during the period.

Fair value measurement at end of

reporting period using:

(ii) Vehicles are categorised to level 3 assets if the depreciated replacement cost is used in estimating the

fair value.


50




Specialised land and specialised buildings

Vehicles

Plant and equipment

Plant and equipment is held at carrying value (depreciated cost). When plant and equipment is

specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated

replacement cost is used to estimate the fair value. Unless there is market evidence that current

replacement costs are significantly different from the original acquisition cost, it is considered

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

value.

There were no changes in valuation techniques throughout the period to 30 June 2016.

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

The market approach is also used for specialised land and specialised buildings although is adjusted

for the community service obligation (CSO) to reflect the specialised nature of the assets being

valued. Specialised assets contain significant, unobservable adjustments; therefore these assets

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

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions

associated with an asset to the extent that is also equally applicable to market participants. This

approach is in light of the highest and best use consideration required for fair value measurement,

and takes into account the use of the asset that is physically possible, legally permissible and

financially feasible. As adjustments of CSO are considered as significant unobservable inputs,

specialised land would be classified as Level 3 assets.

For Casterton Memorial Hospital, the depreciated replacement cost method is used for the majority

of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are

considered as significant and unobservable inputs in nature, specialised buildings are classified as

Level 3 for fair value measurements.

An independent valuation of the Health Service’s specialised land and specialised buildings was

performed by the Valuer-General Victoria. The valuation was performed using the market approach

adjusted for CSO. The effective date of the valuation is 30 June 2014.

The Casterton Memorial Hospital acquires new vehicles and at times disposes of them before

completion of their economic life. The process of acquisition, use and disposal in the market is

managed by the Health Service who set relevant depreciation rates during use to reflect the

consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from

the carrying value (depreciated cost).


51

Not

es T

o an

d Fo

rmin

g Pa

rt o

f th

e Fi

nanc

ial S

tate

men

ts

Cas

tert

on M

emor

ial H

ospi

tal A

nnua

l Rep

ort

2015

/201

6

Note

9:

Pro

pert

y, P

lan

t &

Equ

ipm

en

t (C

on

tin

ued)

Lan

d &

La

nd

Imp

rov

em

en

tsB

uil

din

gs

Pla

nt

&M

ed

ica

l C

om

pu

ters

&

Fu

rnit

ure

&

Mo

tor

To

tal

Eq

uip

me

nt

Eq

uip

me

nt

Co

mm

un

ica

tio

nF

itti

ng

sV

eh

icle

$$

$$

$$

$$

Ba

lan

ce 1

Ju

ly 2

01

46

15

,96

0

22

,79

9,0

00

1

62

,10

7

19

1,8

91

18

,15

7

13

6,2

79

88

,97

2

24

,01

2,3

66

Purc

hase

s /

(Sal

es)

135,9

53

-

1,9

09

6,6

82

-

57,5

30

-

202,0

74

Rev

alua

tion

-

-

-

-

-

-

-

-

- D

epre

ciat

ion

(9,5

59)

(870,3

53)

(33,2

83)

(47,1

49)

(3,2

92)

(34,3

75)

(36,3

04)

(1,0

34,3

15)

Ba

lan

ce 1

Ju

ly 2

01

57

42

,35

4

21

,92

8,6

47

1

30

,73

3

15

1,4

24

14

,86

5

15

9,4

34

52

,66

8

23

,18

0,1

25

Purc

hase

s /

(Sal

es)

16,9

82

-

21,5

38

2,4

20

(154)

38,9

52

35,1

18

114,8

56

- D

epre

ciat

ion

(13,0

07)

(870,3

53)

(33,7

64)

(43,4

77)

(1,6

18)

(39,2

69)

(22,1

69)

(1,0

23,6

57)

Ba

lan

ce 3

0 J

un

e 2

01

67

46

,32

9

21

,05

8,2

94

1

18

,50

7

11

0,3

67

13

,09

3

15

9,1

17

65

,61

7

22

,27

1,3

24

(i)

Cla

ssifi

ed in

acc

ord

ance

with

the

fai

r va

lue

hier

arch

y, s

ee N

ote

1

The

re h

ave

been

no

tran

sfer

s be

twee

n le

vels

dur

ing

the

perio

d

(d)

Rec

onc

iliatio

n of Le

vel 3

fai

r va

lue

as a

t 30 J

une

2016


52



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

Valuation technique (i)

Significant unobservable

inputs (i)

Specialised land

Market approach

Community Service Obligation

(CSO)adjustment

Specialised buildings

Depreciated replacement

cost Direct cost per square metre

Useful life of specialised buildings

Plant and equipment at fair

value


cost Cost per unit

Useful life of PPE

Vehicles


cost Cost per unit

Useful life of vehicles

Medical equipment at fair value Depreciated replacement

cost Cost per unit

Useful life of medical equipment


53

Notes To and Forming Part of the Financial Statements Casterton Memorial Hospital Annual Report 2015/2016

Note 10: Investments Accounted for using the Equity Method

2016 2015 2016 2015

Name of Entity % % % %

Jointly Controlled Entities

Southern Grampians/Glenelg Shire PCP Primary Health Australia 13 13 13 13

Summarised Balance Sheet 2016 2015

$'000 $'000

Southern Grampians/Glenelg Shire PCP

Current Assets

Cash and Cash Equivalents 479,214 592,456

Total Current Assets 479,214 592,456

Current Liabilities

Other Liabilities 130,860 258,925

Staff Provisions 141,472 119,531

Total Current Liabilities 272,332 378,456

Net Assets 206,882 214,000

Share of Joint Venture's Net Assets 26,895 27,820

Summarised Operating Statement 2016 2015

$'000 $'000


Revenue

Grants 323,063 370,366

Other Revenue 417,137 296,935

Total Revenue 740,200 667,301

Expenses

Employee Expenses 444,079 316,490

Other 303,239 401,269

Total Expenses 747,318 717,759

Net Result (7,118) (50,458)

Share of Joint Venture Net Result (925) (6,560)

Movements in carrying amounts of interest 2015 2015

in the Joint Venture $'000 $'000


Carrying amount at the beginning of the year 27,820 34,380

Share of the joint venture net result after tax (925) (6,560)

Carrying amount at the end of the year 26,895 27,820

Dividends Received from Associates and Joint Ventures

Principal Activity

Country of

Incorporation

Ownership Interest Published Fair Value

During the 2016 financial year, the Casterton Memorial Hospital received dividends

of $0 (2014/2015: $0) from its joint ventures.


54

Notes To and Forming Part of the Financial Statements Casterton Memorial Hospital Annual Report 2015/2016

Note 11: Investment Properties

(a) Movements in carrying value for investment properties as at 30 June 2016

Total Total

2016 2015

$ $

Balance at Beginning Period 50,000 50,000

Transfers from Land & Buildings - -

Balance at End of Period 50,000 50,000

Level 1 (¹) Level 2 (²) Level 3 (³)

Investment Properties 50000 50,000

50000 50000

Level 1 (¹) Level 2 (²) Level 3 (³)

Investment Properties 50000 50,000

50000 50000

The fair value of the Health Service’s investment properties at 30 June 2016 have been arrived on

the basis of an independent valuation carried out by VRC Property Pty Ltd, Certified Practising

Valuers recognised by the Australian Property Institute and are the State Government's

independent valuation agency. The Valuation is in accordance with instructions from the Valuer-

General Victoria and determined by reference to market evidence of transaction process for similar

properties with no significant unobservable adjustments, in the same location and condition and

subject to similar lease and other contracts.

(b) Fair value measurement hierarchy for investment properties as at 30 June 2016

Carry amount

as at 30 June

2016

Fair value measurement at end of reporting

period using:

There have been no transfers between levels during the period. There were no changes in valuation

techniques throughout the period to 30 June 2016

For investment properties measured at fair value, the current use of the asset is considered the

highest and best use.

Carry amount

as at 30 June

2015

Fair value measurement at end of reporting

period using:


55



Note 12: PayablesTotal Total

2016 2015

$ $

CURRENT

Contractual

Trade Creditors 218,601 174,304

Accrued Expenses 21,894 29,045

SWARH - Payables 587,448 60,714

827,943 264,063

Statutory

GST Payable 8,963 8,316

DHHS Payables 105,515 -

PAYG Withholding 74,396 106,270

188,874 114,586

TOTAL CURRENT 1,016,817 378,649

(a) Maturity analysis of payables

Please refer to Note 18(c) for the ageing analysis of contractual payables

(b) Nature and extent of risk arising from payables

Note 13: BorrowingsTotal Total

2016 2015

$ $

CURRENT

Australian Dollar Borrowings

– Finance Lease Liability - SWARH (i) (refer Note 18a) 73,240 68,480

Total Australian Dollars Borrowings 73,240 68,480

Total Current 73,240 68,480

NON CURRENT

Australian Dollar Borrowings

– Finance Lease Liability - SWARH

(refer Note 18a) 134,147 167,003

Total Australian Dollars Borrowings 134,147 167,003

Total Non-Current 134,147 167,003

Total Borrowings 207,387 235,483

Amount of finance costs recognised as expenses 10,910 10,064

Nil Nil

(a) Maturity analysis of borrowings

Please refer to note 18(c) for the ageing analysis of borrowings.

(b) Nature and extent of risk arising from borrowings

(c) Defaults and breaches

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

Please refer to note 18(c) for the nature and extent of risks arising from contractual payables

(i) Finance leases are held by SWARH and are secured by the rights to the leased assets reverting to

the lessor in the event of default.Finance costs of the Health Service incurred during the year are accounted for

Amount of investment revenue earned on

borrowed funds that has been deducted from

Please refer to note 18(c) for the nature and extent of risks arising from borrowings.


56



Note 13.a: Borrowings

(a) Finance lease liabilities

2016 2015 2016 2015

Other finance lease liabilities payable (ii)

Not longer than one year 73,240 68,480 73,240 68,480

Longer than one year but not longer than five

years 134,147 167,003 134,147 167,003

Longer than five years

Minimum future lease payments 207,387 235,483 207,387 235,483

Less future finance charges 24,855 24,855 24,855 24,855

Present value of minimum lease payments 182,532 210,628 182,532 210,628

Included in the financial statements as:

Current borrowings lease liabilities 73,240 68,480 73,240 68,480

Non-current borrowing lease liablities 134,147 167,003 134,147 167,003

207,387 235,483 207,387 235,483

The weighted average interest rate implicit in leases is 4.97% (2015 - 4.97%)

Minimum future lease

payments (i)

Present value of

minimum future lease

payments

(i) Minimum future lease payments include the aggregate of all base payments and any guaranteed

residual

(ii) Other finance lease liabilities include obligations that are recognised on the balance sheet; the


57



Note 14: Provisions

Total Total

2016 2015

$ $

Current Provisions

Annual Leave (Note 14a)

- Unconditional and expected to be settled within 12 months 502,951 429,998

- Unconditional and expected to be settled after 12 months 115,182 150,820

Long Service Leave (Note 14a)


- Unconditional and expected to be settled after 12 months 625,937 660,219

Accrued Days Off (Note 14a)


Accrued Salaries and Wages


1,462,645 1,431,358

Provisions related to Employee Benefit On-Costs

- Unconditional and expected to be settled within

12 months (nominal value)

75,758 53,339

- Unconditional and expected to be settled after

12 months (nominal value)

87,021 77,320

162,779 130,659

Total Current Provisions 1,625,424 1,562,017

Non-Current Provisions

Employee Benefits (Note 14a) 278,590 197,350

Provisions related to Employee Benefit On-Costs 38,998 19,183

Total Non-Current Provisions 317,588 216,533

Total Provisions 1,943,012 1,778,550

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costs

Annual Leave Entitlements 675,991 629,659

Accrued Wages and Salaries 57,057 30,298

Accrued Days Off 32,758 40,585

Unconditional Long Service Leave Entitlements 859,618 861,475

Non-Current Employee Benefits and related on-

costs

Conditional Long Service Leave Entitlements 317,588 216,533

Total Employee Benefits and Related On-Costs 1,943,012 1,778,550

Total Total

2016 2015

(b) Movements in Long Service Leave $ $

Balance at start of year 1,078,008 1,047,682

Provision made during the year

- Revaluations 40,999 27,889

- Expense recognising Employee Service 186,960 122,531

Settlement made during the year (128,761) (120,094)

Balance at end of year 1,177,206 1,078,008


58



Note 15: Other LiabilitiesTotal Total

2016 2015

$ $

CURRENT

Monies Held in Trust

- Accommodation Bonds (Refundable Entrance Fees) 1,568,927 1,389,385

Total Current 1,568,927 1,389,385

Total Other Liabilities 1,568,927 1,389,385

Represented by the following assets:

Cash Assets (refer to Note 6) 1,568,927 1,389,385

TOTAL 1,568,927 1,389,385

Note 16: ReservesTotal Total

2016 2015

$ $

(a) Reserves

Property, Plant & Equipment Revaluation Surplus (1)

Balance at the beginning of the reporting period 19,796,870 19,796,870

Revaluation undertaken during the year - -

Balance at the end of the reporting period 19,796,870 19,796,870

Represented by:

- Land 409,292 409,292

- Buildings 19,387,578 19,387,578

19,796,870 19,796,870

Total Reserves 19,796,870 19,796,870

(b) Contributed Capital


2,293,608 2,293,608


Net Result for the Year (761,728) (528,897)

- -

1,831,060 2,592,788

(d) Total Equity at end of financial year 23,921,538 24,683,266

Total Monies Held in Trust

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

plant & equipment.

Balance at the end of the reporting period

Transfers to and from Reserves

Balance at the end of the reporting period

(c) Accumulated Surpluses/(Deficits)


59



Total Total

2016 2015

$ $

Net Result for the Year (761,728) (528,897)

Depreciation 1,103,414 1,101,792

Net (Gain)/Loss from Sale of Plant and

Equipment (11,320) 4,087

Change in Operating Assets & Liabilities

(Increase)/Decrease in Receivables (600,854) (14,051)

(Increase)/Decrease in Inventories 24,174 (3,341)

(Increase)/Decrease in Other Assets (16,139) -

Increase/(Decrease) in Payables 610,070 243,494

Increase/(Decrease) in Provisions 164,461 (108,342)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 512,078 694,742

Note 18: Financial Instruments

(a) Financial Risk Management Objectives and Policies

Casterton Memorial Hospitals principal financial instruments comprise of:

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Payables (excluding statutory payables)

- Accommodation Bonds

Categorisation of Financial Instruments

Carrying

Amount

Carrying

Amount

2016 2015

$ $

Financial Assets

Cash and cash equivalents 4,779,526 4,242,178

776,252 229,809

Total Financial Assets (i) 5,555,778 4,471,987

Financial Liabilities

827,943 264,063

Borrowings 207,387 235,483

Total Financial Liabilities (ii) 1,035,330 499,546

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

receivables (i.e. GST input tax credit recoverable)

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

for recognition, the basis of measurement and the basis on which income and expenses

are recognised, with respect to each class of financial asset, financial liability and equity

instrument are disclosed in note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage Casterton

Memorial Hospital's financial risks within the government policy parameters.

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

payable)

Note 17: Reconciliation of Net Result for the Year to Net

Cash Inflow/(Outflow) from Operating Activities

Contractual financial assets and Receivables

Contractual financial liabilities at amortised cost


60



Note 18: Financial Instruments (Continued)

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

Net holding

gain/(loss)

Net holding

gain/(loss)

2016 2015

$ $

Financial Assets

Cash & Cash Equivalent 82,183 91,110

Total Financial Assets 82,183 91,110

(b) Credit Risk

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

that Casterton Memorial Hospital will not be able to collect a receivable. Objective evidence includes

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

changes in debtor credit ratings.

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

recorded in the financial statements, net of any allowances for losses, represents Casterton Memorial

Hospital’s maximum exposure to credit risk without taking account of the value of any collateral

obtained.

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

gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue or

losses arising from revaluation of the financial assets, and minus any impairment recognised in the net

result;

In addition, the Casterton Memorial Hospital does not engage in hedging for its contractual financial

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

assets, which are mainly cash at bank. As with the policy for debtors, the Hospital’s policy is to only

deal with banks with high credit ratings.

Credit risk arises from the contractual financial assets of Casterton Memorial Hospital, which comprise

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

Casterton Memorial Hospital's exposure to credit risk arises from the potential default of a counter

party on their contractual obligations resulting in financial loss to the Hospital. Credit risk is measured

at fair value and is monitored on a regular basis.

Credit risk associated with Casterton Memorial Hospital’s contractual financial assets is minimal

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

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

obtain sufficient collateral or credit enhancements, where appropriate.


61



Note 18: Financial Instruments (Continued)(b) Credit Risk (Continued)

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

2016 $ $ $

Financial Assets

Cash and Cash Equivalents 4,779,526 - 4,779,526

Receivables - Trade Debtors - 64,761 64,761

- Joint Venture Debtor 599,356 599,356

- Other Receivables (i) - 112,135 112,135

Total Financial Assets 4,779,526 776,252 5,555,778

2015

Financial Assets

Cash and Cash Equivalents 4,242,178 - 4,242,178

Receivables

- Trade Debtors - 56,275 56,275

- Joint Venture Debtor 59,418 59,418

- Other Receivables - 451,160 451,160

Total Financial Assets 4,242,178 566,853 4,809,031

Ageing analysis of Financial Asset as at 30 June

Less than 1

Month

1-3 Months 3 months - 1

Year

2016 $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 4,779,526 4,779,526 - - -

Receivables (i)

- Trade Debtors 64,761 31,945 32,816

- Joint Venture Debtors 599,356 599,356 - - -

- Other Receivables 112,135 90,360 13,337 2,385 6,053

Total Financial Assets 5,555,778 5,501,187 13,337 2,385 38,869

2015

Financial Assets

Cash and Cash Equivalents 4,242,178 4,242,178 - - -

Receivables (i)

- Trade Debtors 56,275 16,336 - - 39,939

- Joint Venture Debtors 59,418 59,418 - - -

- Other Receivables 451,160 89,577 4,654 19,894 337,035

Total Financial Assets 4,809,031 4,407,509 4,654 19,894 376,974

There are no material financial assets which are individually determined to be impaired. Currently

Casterton Memorial Hospital does not hold any collateral as security nor credit enhancements relating to

any of its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being

past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis

table above discloses the ageing only of contractual financial assets that are past due but not impaired.

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

Government and GST input tax credit recoverable).

Financial

institutions

(min BB

credit

rating)

Other Total

Total

Carrying

Amount

Not Past Due

and Not

Impaired

Past Due But Not Impaired


62




(c) Liquidity Risk

Carrying

Amount

Contractual

Cash Flows

Less than 1

Month

1-3

Months

3 months -

1 Year

1-5 Years

2016 $ $ $ $ $ $


Payables 827,943 827,943 827,943 - - -

Borrowings 207,387 207,387 - - 73,240 134,147

Total Financial Liabilities 1,035,330 1,035,330 827,943 - 73,240 134,147

2015


Payables 264,063 264,063 264,063 - - -

Borrowings 235,483 235,483 - - 68,480 167,003

Total Financial Liabilities 499,546 499,546 264,063 - 68,480 167,003

(d) Market Risk

Currency Risk

The Casterton Memorial Hospital's exposures to market risk are primarily through interest rate risk

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

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

The Casterton Memorial Hospital is exposed to insignificant foreign currency risk through its

payables relating to purchases of supplies and consumables from overseas. This is because of a

limited amount of purchases denominated in foreign currencies and a short timeframe between

commitment and settlement.

Liquidity risk is the risk that the Hospital would be unable to meet its financial obligations as and

when they fall due.

Casterton Memorial Hospital's maximum exposure to liquidity risk is the carrying amounts of financial

liabilities as disclosed in the face of the balance sheet. The Hospital manages its liquidity risk as

follows:

(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 Casterton Memorial Hospital's

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

the financial statements.

Maturity analysis of Financial Liabilities as at 30 June

Trade creditors are paid in accordance with their trading terms. Accommodation bonds are refunded

when the resident departs the aged care facility. Sufficient cash reserves are held to ensure these

commitments are met when due


63




(d) Market Risk (continued)

Interest Rate Risk

Other Price Risk

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

Weighted Carrying

Average Amount Fixed Variable Non-

Effective Interest Interest Interest

Interest Rate Rate Bearing

2016 Rate (%) $ $ $ $

Financial Assets

Cash and Cash Equivalents 2.30 4,779,526 - 4,779,526 -

Receivables

- Trade Debtors 0 64,761 - - 64,761

- Joint Venture Debtors 0 599,356 - - 599,356

- Other Receivables 0 112,135 - - 112,135

5,555,778 - 4,779,526 776,252


Payables 0 827,943 - - 827,943

Borrowings 5.26 207,387 235,483 - -

1,035,330 235,483 - 827,943

2015

Financial Assets

Cash and Cash Equivalents 3.20 4,242,178 - 4,242,178 -

Receivables

- Trade Debtors 0 56,275 - - 56,275

- Joint Venture Debtors - 59,418 - - 59,418

- Other Receivables 0 451,160 - - 451,160

4,809,031 - 4,242,178 566,853


Payables 0 264,063 - - 264,063

Borrowings 4.27 235,483 235,483 - -

499,546 235,483 - 264,063

Interest Rate Exposure

Exposure to interest rate risk is insignificant. Minimisation of risk is achieved by mainly

undertaking fixed rate or non-interest bearing financial instruments. For financial assets,

Casterton Memorial Hospital holds financial assets with relatively even maturity profiles. The

Hospital mainly undertakes financial liabilities with relatively even maturity profiles.

The Hospital is exposed to normal price fluctuations from time to time through market forces.

Where adequate notice is provided by suppliers, additional purchases are made for long term

goods. Supplier contracts are also in place for major product lines purchased by the Hospital on

a monthly basis. These contracts have set price arrangements and are reviewed on a regular

basis.


64




(d) Market Risk (continued)

Sensitivity Disclosure Analysis

- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 1.75%;

- A parallel shift of +1% and -1% in inflation rate from year-end rates of 1.4%

Carrying

Amount

Profit Equity Profit Equity

2016 $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 4,779,526 (47,795) (47,795) 47,795 47,795

Receivables

- Trade Debtors 64,761 - - - -

- Joint Venture Debtors 599,356 - - - -

- Other Receivables 112,135 - - - -


Payables 827,943 - - - -

Borrowings 207,387 - - - -

(47,795) (47,795) 47,795 47,795

2015

Financial Assets

Cash and Cash Equivalents 4,242,178 (42,422) (42,422) 42,422 42,422

Receivables

- Trade Debtors 56,275 - - - -

- Other Receivables 451,160 - - - -


Payables 264,063 - - - -

Borrowings 235,483

(42,422) (42,422) 42,422 42,422

Taking into account past performance, future expectations, economic forecasts, and

management's knowledge and experience of the financial markets, Casterton Memorial Hospital

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 on net operating result and equity for each category of

financial instrument held by Casterton Memorial Hospital at year end as presented to key

management personnel, if changes in the relevant risk occur.

Interest Rate Risk

-1% +1%


65




(e) Fair Value

Total

Carrying

Amount

Fair value Total

Carrying

Amount

Fair value

2016 2016 2015 2015

$ $ $ $

Financial Assets

Cash and Cash Equivalents 4,779,526 4,779,526 4,242,178 4,242,178

Receivables

- Trade Debtors 64,761 64,761 56,275 56,275

- Joint Venture Debtors 599,356 599,356 - -

- Other Receivables 112,135 112,135 451,160 451,160

Total Financial Assets 5,555,778 5,555,778 4,749,613 4,749,613


Payables 827,943 827,943 264,063 264,063

Borrowings 207,387 207,387 235,483 235,483

Total Financial Liabilities 1,035,330 1,035,330 499,546 499,546

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

as follows:

• Level 1 - the fair value of financial instrument with standard terms and conditions and

traded in active liquid markets are determined with reference to quoted market prices;

• Level 2 - the fair value is determined using inputs other than quoted prices that are

observable for the financial asset or liability, either directly or indirectly; and

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

based on discounted cash flow analysis using unobservable market inputs.

Casterton Memorial Hospital considers that the carrying amount of financial instrument assets

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

values, because of the short-term nature of the financial instruments and the expectation

that they will be paid in full.

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

liabilities are the same as the carrying amounts.

Comparison between carrying amount and fair value


66



Note 19: Commitments for Expenditure

Total Total

2016 2015

$ $

Final payment due on car park redevelopment - 13,091

Lease commitments

Commitments in relation to leases contracted for at

the reporting date:

Operating Leases 16,680 21,839

Total lease commitments 16,680 21,839

Operating Leases

Non-cancellable

Not later than one year 11,921 11,636

Later than 1 year and not later than 5 years 4,759 10,203

Sub Total 16,680 21,839

TOTAL 16,680 21,839

Total Commitments for Expenditure (inclusive of

GST) 16,680 21,839

less GST recoverable from the Australian Tax Office (1,516) (1,985)

Total Commitments for Expenditure (exclusive of

GST) 15,164 19,854

Note 20: Finance Leases2016 2015

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

Finance Leases (South West Alliance of Rural Health) 207,387 235,483

Total Lease Commitments 207,387 235,483

Commitments in relation to finance leases are payable as follows:

Current 155,735 83,455

Non-Current 121,255 212,880

Minimum Lease Payments 276,990 296,335

Less future finance charges 69,603 60,852

Total Lease Commitments 207,387 235,483

Note 21: Contingent Assets and Contingent Liabilities

There are no known contingent assets or liabilities (2015 nil).

Note 22: Remuneration of Auditors

2015 2014

$ $

Victorian Auditor-General's Office 9,600 9,200

RSM Bird Cameron - Internal Audit 13,280 13,100

Coffey Hunt Chartered Accountants

- Annual Prudential Compliance Statement (APCS) 300 -

23,180 22,300

Note 23: Ex Gratia Payments

(2015 nil)

The amount paid or due and payable to the Auditor - General for auditing the financial

statements of Casterton Memorial Hospital pursuant to the Audit Act 1994

Casterton Memorial Hospital have made no ex gratia payments during the 2015/16 year.


67

Note

s T

o a

nd F

orm

ing P

art

of

the F

inancia

l Sta

tem

ents

Caste

rton M

em

orial Hospital Annual Report

2015/2

016

Note

24

: O

pera

tin

g S

egm

en

ts

20

16

20

15

20

16

20

15

20

16

20

15

20

16

20

15

$$

$$

$$

$$

Exte

rnal Segm

ent

Revenue

4,5

71,6

93

4,3

77,3

49

3,9

40,5

99

3,9

93,0

98

510,7

67

472,0

14

9,0

23,0

59

8,8

42,4

61

Tota

l R

evenue

4,5

71

,69

3

4,3

77

,34

9

3,9

40

,59

9

3,9

93

,09

8

5

10

,76

7

4

72

,01

4

9,0

23

,05

9

8

,84

2,4

61

EX

PEN

SES

Exte

rnal Segm

ent

Expenses

(4,2

06,8

41)

(4,0

19,8

61)

(4,7

99,3

68)

(4,5

71,5

82)

(

902,0

67)

(

864,4

64)

(9,9

08,2

76)

(9,4

55,9

07)

Tota

l Expenses

(4

,20

6,8

41

)

(4

,01

9,8

61

)

(4

,79

9,3

68

)

(4

,57

1,5

82

)

(

90

2,0

67

)

(

86

4,4

64

)(9

,90

8,2

76

)

(9

,45

5,9

07

)

Net

Result

from

ordin

ary a

cti

vit

ies

3

64

,85

2

3

57

,48

8

(

85

8,7

69

)

(

57

8,4

84

)

(

39

1,3

00

)

(

39

2,4

50

)(8

85

,21

7)

(6

13

,44

6)

Inte

rest

Incom

e

63,2

81

70,1

55

58,6

68

18,2

22

2,4

65

2,7

33

124,4

14

91,1

10

Share

of N

et

Result o

f Associa

tes &

Join

t Ventu

res u

sin

g E

quity M

eth

od

(480)

(3

,411)

(389)

(2

,755)

(

56)

(394)

(925)

(6

,560)

Net

Result

for Y

ear

4

27

,65

3

4

24

,23

2

(

80

0,4

90

)

(

56

3,0

17

)

(

38

8,8

91

)

(

39

0,1

11

)(7

61

,72

8)

(5

28

,89

6)

OTH

ER

IN

FO

RM

ATIO

N

Segm

ent

Assets

14,9

01,9

94

14,8

01,9

73

12,0

36,2

26

11,9

55,4

40

1,7

19,4

61

1,7

07,9

20

28,6

57,6

81

28,4

65,3

33

Tota

l A

ssets

1

4,9

01

,99

4

1

4,8

01

,97

3

1

2,0

36

,22

6

1

1,9

55

,44

0

1,7

19

,46

1

1,7

07

,92

0

28

,65

7,6

81

2

8,4

65

,33

3

Segm

ent

Lia

bilitie

s

2

,462,7

94

1,9

66,6

75

1,9

89,1

80

1,5

88,4

68

284,1

69

226,9

24

4,7

36,1

43

3,7

82,0

67

Tota

l Lia

bilit

ies

2,4

62

,79

4

1,9

66

,67

5

1,9

89

,18

0

1,5

88

,46

8

2

84

,16

9

2

26

,92

4

4,7

36

,14

3

3

,78

2,0

67

Investm

ents

in A

ssocia

tes a

nd J

oin

t

Ventu

re P

art

ners

hip

13,9

85

14,4

67

11,2

96

11,6

84

1,6

14

1,6

69

26,8

95

27,8

20

Acquis

itio

n o

f Pro

pert

y, Pla

nt

and

Equip

ment

and I

nta

ngib

le A

ssets

125,4

47

69,4

48

9,5

87

-

204,4

82

Depre

cia

tion &

Am

ort

isation E

xpense

573,7

75

572,9

31

463,4

34

462,7

53

66,2

05

66,1

08

1,1

03,4

14

1,1

01,7

92

The m

ajo

r pro

ducts

/serv

ices fro

m w

hic

h t

he a

bove s

egm

ents

derive r

evenue a

re:

Bu

sin

ess S

eg

me

nts

Se

rvic

es

Hospital

Acute

bed b

ased s

erv

ices

Resid

ential Aged C

are

Serv

ices (

RACS)

Pro

vider

of re

sid

ential aged c

are

beds

Prim

ary

Care

Serv

ices

Prim

ary

Care

and C

om

munity b

ased s

erv

ices

Ge

og

rap

hic

al S

eg

me

nt

Caste

rton M

em

orial H

ospital opera

tes p

redom

inantly in t

he W

este

rn D

istr

ict

of V

icto

ria.

More

than 9

0%

of re

venue,

net

surp

lus fro

m o

rdin

ary

activi

ties a

nd

segm

ent

assets

rela

te t

o o

pera

tions in t

he W

este

rn D

istr

ict

of V

icto

ria

To

tal

Ho

sp

ita

lR

AC

SP

rim

ary

Ca

re


68



Note 25: Jointly Controlled Operations and Assets

Name of Entity Principal Activity 2016 2015

% %

South West Alliance of Rural Health Information Systems 3.94 3.64

Casterton Memorial Hospital'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:

2016 2015

$ $

Current Assets

Cash and Cash Equivalents 82,162 73,507

Other Current Assets 602,190 71,014

Total Current Assets 684,352 144,521

Non Current Assets

Property, Plant and Equipment 216,181 244,430

Total Non Current Assets 216,181 244,430

Total Assets 900,533 388,951

Current Liabilities

Payables 587,448 60,714

Employee Benefits 70,833 59,108

Borrowings 73,240 68,480

Total Current Liabilities 731,521 188,302

Non Current Liabilities

Employee Benefits 13,834 14,653

Borrowings 134,147 167,003

Total Non Current Liabilities 147,981 181,656

Total Liabilities 879,502 369,958

Casterton Memorial Hospital's interest in revenues and expenses resulting from jointly

controlled operations and assets is detailed below:

2016 2015

$ $

Revenues

Other 884,063 750,632

Total Revenue 884,063 750,632

Expenses

Information Technology and Administrative Expenses 882,025 748,606

Total Expenses 882,025 748,606

Net result 2,038 2,026

Ownership Interest

The financial results included for SWARH are unaudited at the date of signing the financial

statements.


69



Note 26a: Responsible Persons Disclosures

Governing Boards

Mr T Baker

Dr T Halloran

Mr P Green

Mr G Sheppard

Mr G Cain

Mr R Dalby

Mrs Karen Black

Mr Gerald Smith

Mrs J Kenson

Ms Merridy Rowe

Accountable Officers

Mr O Stephens

Remuneration of Responsible Persons

2016 2015

Income Band No. No.

$0 - $9,999 10 9

$190000 - $199999 1

$200,000 - $209,999 1

Total Numbers 11 10

$200,943 $197,352

Executive Officers' Remuneration

2016 2015 2016 2015

No. No. No. No.

$130,000 - $139,9991 1 1 1

Total annualised employee equivalents (AEE) (i) 1 1 1 1

Total Remuneration 135,055 135,087 135,055 135,087

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial

Management Act 1994 , the following disclosures are made regarding responsible persons for the

reporting period.

Note 26b: Executive Officer Disclosures

01/07/2015 - 30/06/2016

01/07/2015 - 30/06/2016

08/3/2016 - 30/06/2016

Total remuneration received or due and receivable by Responsible

Persons from the reporting entity amounted to:

Amounts relating to Responsible Ministers are reported in the financial

statements of the Department of Premier and Cabinet

Remuneration

Responsible Ministers:

Period

01/07/2015 - 30/06/2016

01/07/2015 - 30/06/2016

01/07/2015 - 30/06/2016

01/07/2015 - 30/06/2016

01/07/2015 - 30/06/2016

The Honourable Jill Hennessy, MLA, Minister for Health, Minister for

Ambulance Services 01/07/2015 - 30/06/2016

Casterton Memorial Hospital has made no payments to other personnel or contractors with significant

management responsibilities during the 2015/16 year. (2015 nil).

The Honourable Martin Foley, MLA, Minister for Housing, Disability and

Ageing

01/07/2015 - 30/06/2016

The number of Responsible Persons are shown in their

relevant income bands;

Total Remuneration Base Remuneration

08/3/2016 - 30/06/2016

01/07/2015 - 30/06/2016

(i) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over

52 weeks for a reporting period

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 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,

01/07/2015 - 30/06/2016


70



Note 27 Events Occurring after the Balance Sheet Date

Note 28: Superannuation

Paid

contribution

for the Year

Paid

contribution

for the Year

Contribution

outstanding

at Year End

Contribution

outstanding

at Year End

2016 2015 2016 2015

$ $ $ $

(i) Defined benefit plans:

First State Super (Health Super) 31,979 32,715 - -

Defined Contribution plans:

First State Super (Health Super) 433,671 444,380 - -

HESTA 63,650 56,749 - -

Total 529,300 533,844 - -

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

Service contributes to both defined benefit and defined contribution plans. The defined benefit

plan(s) provides benefits based on years of service and final average salary.The Health Service does not recognise any defined benefit liability in respect of the plan(s)

because the entity has no legal or constructive obligation to pay future benefits relating to its

employees: its only obligation is to pay superannuation contributions as they fall due. The

Department of Treasury and Finance discloses the State's defined benefits liabilities in its

disclosure for administered items.

However superannuation contributions paid or payable for the reporting period are included as part

of the employees benefits in the comprehensive operating statement of the Health Service. The

name, details, and amounts expense in relation to the major employee superannuation funds and

contributions made by the Health Services are as follows:

There have been no events subsequent to the reporting date which require further disclosure. (2015 nil)

(i) The basis for determining the level of contributions is determined by the various actuaries of the defined

benefit superannuation plans.

2016 2015

$'000 $'000

.Interest 124,414 91,110

Sales of goods and services 1,088,793 1,019,722

Grants 6,673,525 6,535,595

Other Income 1,247,106 1,287,144

Total revenue 9,133,838 8,933,571

.Employee expenses 6,358,497 6,084,599

Depreciation 1,103,414 1,101,792

Other operating expenses 2,433,655 2,276,077

Total expenses 9,895,566 9,462,468

. - -

Net result from transactions - Net operating balance (761,728) (528,897)

.

Items that may be reclassifed subsequently to net result

Changes to financial assets available-for-sale revaluation surplus - -

.Total other economic flows included in net result - -

. - -

Net result (761,728) (528,897)

Note 29 : Alternate Presentation of Comprehensive operating statement


71

Disclosure Index

Legislation Requirement Page Reference

FRD 22G Manner of establishment and the relevant Ministers 2

FRD 22G Purpose, functions, powers and duties Inside front cover

FRD 22G Initiatives and key achievements 4

FRD 22G Nature and range of services provided 3

FRD 22G Organisational structure Inside back cover

66

FRD 11A Disclosure of ex‑gratia expenses 69

FRD 21B Responsible person and executive officer disclosures 69

FRD 22G Application and operation of Protected Disclosure 2012 13

FRD 22G Application and operation of Carers Recognition Act 2012 13

FRD 22G Application and operation of Freedom of Information Act 1982 13

FRD 22G Compliance with building and maintenance provisions of Building Act 1993 14

FRD 22G Details of consultancies over $10,000 14

FRD 22G Details of consultancies under $10,000 14

FRD 22G Employment and conduct principles 12

FRD 22G Major changes or factors affecting performance 17

FRD 22G Occupational health and safety 12&13

FRD 22G Operational and budgetary objectives and performance against objectives 16&17

FRD 24C Reporting of office-based environmental impacts 14

FRD 22G Significant changes in financial position during the year 17

FRD 22G Statement on National Competition Policy 14

FRD 22G Subsequent events 70

FRD 22G Summary of the financial results for the year 16&17

FRD 22GWorkforce Data Disclosures including a statement on the application of

employment and conduct principles 12

FRD 25B Victorian Industry Participation Policy disclosures 14

FRD 29A Workforce Data disclosures 12

SD 4.2(g) Specific information requirements 26-40

SD 4.2(j) Sign-off requirements 15

SD 3.4.13 Attestation on data integrity 15

SD 4.5.5.1 Ministerial Standing Direction 4.5.5.1 compliance attestation 15

SD 4.5.5 Risk management compliance attestation 15

The annual report of the Casterton Memorial Hospital is prepared in

accordance with all relevant Victorian legislation. This index has been prepared

to facilitate identification of the Department’s compliance with statutory

Management and structure

Financial and other information

Ministerial Directions

Report of Operations

Charter and purpose


72

SD 4.2(a) Statement of changes in equity 23

SD 4.2(b) Comprehensive operating statement 21

SD 4.2(b) Balance sheet 22

SD 4.2(b) Cash flow statement 24

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

pronouncements 26

SD 4.2(c) Accountable officer’s declaration 18

SD 4.2(c) Compliance with Ministerial Directions 15

SD 4.2(d) Rounding of amounts 28

13

13

12

14

14

16&26

Protected Disclosure Act 2012

Freedom of Information Act 1982

Legislation

Financial Statements

Financial Management Act 1994

Carers Recognition Act 2012

Victorian Industry Participation Policy Act 2003

Building Act 1993

Financial statements required under Part 7 of the FMA


63 - 69 Russell Street, Casterton, Victoria 3311

Phone: (03) 555 42 555 Fax: (3) 55 811 051 Email: [email protected]

www.castertonmemorialhospital.com.au

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