Our services are delivered on the traditional lands of the Dja Dja Wurrung people.
Artist: Kerri Douglas
Year in review 01
Catchment 02
Services 02
Governance and structure 03
Statement of Priorities Report 06
Nursing & Midwifery Care, Pharmacy & Staff Development 11
Community Programs 13
Corporate Services 15
Statutory Compliance 19
Disclosure Index Inside back cover
Acknowledgements and Feedback
We wish to thank everyone who contributed to this report – staff, members of the community, volunteers and clients. We value your comments and feedback, so please get in touch:
PO Box 50, Castlemaine VIC 3450 P: 03 5471 1401 E: [email protected] www.castlemainehealth.org.au
Print: Mulqueen Creative & Print Design: Billington Prideaux Partnership Bank: Bendigo Bank External Auditor’s agents: Richmond Sinnott and Delahunty Internal auditor: AFS and Associates Pty Ltd
Castlemaine Health acknowledges the support of the Victorian Government
Contents
VisionExceptional care of every person, every time.
MissionA well run and trusted organisation that engages with the community to provide high quality health services.
ValuesIntegrity
We engage with others in the highest degree of dignity, equity, honesty and trust.
Care
We treat people with respect, are compassionate, thoughtful and responsive to their needs.
Unity
We work as a team and in partnership with our communities.
Excellence
We are committed to achieve our Vision.
Disclosure Index
The annual report of Castlemaine Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the department’s compliance with statutory disclosure requirements.
LEGISLATION REQUIREMENT PAGECharter and purpose
FRD 22H Manner of establishment and the relevant Ministers 04
FRD 22H Purpose, functions, powers and duties 04
FRD 22H Initiatives and key achievements 11-18
FRD 22H Nature and range of services provided 02
Management and structure
FRD 22H Organisational structure 03
Financial and other information
FRD 10A Disclosure index IBC
FRD 11A Disclosure of exgratia expenses Refer to AFS*
FRD 21C Responsible person and executive officer disclosures Refer to AFS*
FRD 22H Application and operation of Protected Disclosure 2012 19
FRD 22H Application and operation of Carers Recognition Act 2012 19
FRD 22H Application and operation of Freedom of Information Act 1982 19
FRD 22H Compliance with building and maintenance provisions of Building Act 1993 19
FRD 22H Details of consultancies over $10,000 10
FRD 22H Details of consultancies under $10,000 10
FRD 22H Employment and conduct principles 15
FRD 22H Information and Communication Technology Expenditure 17
FRD 22H Major changes or factors affecting performance Refer to AFS*
FRD 22H Occupational violence 16
FRD 22H Operational and budgetary objectives and performance against objectives Refer to AFS*
FRD 22H Summary of the entity’s environmental performance 17
FRD 22H Significant changes in financial position during the year Refer to AFS*
FRD 22H Statement on National Competition Policy 19
FRD 22H Subsequent events Refer to AFS*
FRD 22H Summary of the financial results for the year Refer to AFS*
FRD 22H Additional information available on request 19
FRD 22H Workforce Data disclosures including a statement on the application of employment and conduct principles 15
FRD 25C Victorian Industry Participation Policy disclosures 19
FRD 29B Workforce Data disclosures 15
FRD 103F Non-Financial Physical Assets Refer to AFS*
FRD 110A Cash flow Statements Refer to AFS*
FRD 112D Defined Benefit Superannuation Obligations Refer to AFS*
SD 5.2.3 Declaration in report of operations Refer to AFS*
SD 3.7.1 Risk management framework and processes Refer to AFS*
Other requirements under Standing Directions 5.2
SD 5.2.2 Declaration in financial statements Refer to AFS*
SD 5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements Refer to AFS*
SD 5.2.1(a) Compliance with Ministerial Directions Refer to AFS*
Legislation
Freedom of Information Act 1982 19
Protected Disclosure Act 2012 19
Carers Recognition Act 2012 19
Victorian Industry Participation Policy Act 2003 19
Building Act 1993 19
Financial Management Act 1994 19
Safe Patient Care Act 2015 19
* AFS – Attached Financial Statement. If the statement is not attached to this report, please call 03 5471 1401.+ Inside back cover
ANNUAL REPORT
2017 18
01
Year in review
In 2017-18 Castlemaine Health continued to make a real difference to the people in our community, particularly our patients and families. We also strengthened our focus on the future as we work towards creating a service that is fit for future generations.
One of those major steps forward is the capital redevelopment of Castlemaine Health, which we’ve been working steadily on for the past few years. We’ve explored what a new facility might look like, where it might be located and what sort of services it might provide. We’ve also undertaken a comprehensive community consultation and published the results in Shaping the Future of Castlemaine Health – A Summary of Community Feedback.
Although Castlemaine Health has always worked closely with other local services, the past twelve months has been a period of consolidating and formalising those relationships. We have taken a more strategic approach to this by establishing the Mount Alexander Strategic Health and Wellbeing Partnership with Castlemaine District Community Health (CDCH), Mount Alexander Shire and more recently Maldon Health and Bendigo Health. The partnership recognises the integrated nature of our work and the importance of working together to improve the health and wellbeing of those in the community. We also signed a Memorandum of Understanding with CDCH and remain in formal partnership with Castlemaine Secondary College.
The master planning funding to scope a new health and wellbeing facility is an exciting outcome of this partnership. The bid has been strengthened by Mount Alexander Shire’s endorsement in their recent Council Plan 2017-2021 and the co-location of CDCH in the redevelopment.
We are thrilled that our bid for a collaborative, innovative service was successful and we’re looking forward to the outcome of this work. There are certainly exciting times ahead for Castlemaine Health as we enter the master planning phase with the Department for Health and Human Services’ Building Authority. The master planning process will continue for around 12 months.
Throughout, we’ll continue to deliver our core services in Acute, Maternity, Urgent Care, Subacute, Residential Aged Care and Community Services, as well as continually looking for opportunities to establish new services not available locally.
In the past year we have also continued to achieve a high standard of care as reflected by our ability to meet all external accreditation standards, with all of our services being fully accredited. Throughout the accreditation and standards reviews, we heard many positive comments from surveyors in relation to
systems, documentation and client feedback. Congratulations are well deserved for everyone who took part in these important reviews.
We’ve also been able to undertake a number of important capital improvement projects. These include installation of a new nurse call system in Acute and Subacute, lift upgrades throughout the facility, new air conditioning units in our aged care residences and a full site upgrade of our security systems. Thanks to several key successful grant applications submitted in 2017-18, we’re looking forward to upgrading the vast majority of our ageing beds in Acute, Subacute and Aged Care. We will also be redeveloping our external carpark area to deliver a safer, more secure and accessible environment.
We bid farewell to two Board members, Adam Sevdalis and David Goldberg. Both members have brought a wealth of experience and knowledge to our Board of Management. Adam led our Board in the role of Chair then Vice Chair from 2015 to 2017. Both members’ legal and commercial acumen enrichened our discussions and helped steer Castlemaine Health’s direction towards the future. We’d like to thank them for their dedication and contribution.
As always, our heartfelt thanks go out to staff, our executive team, our medical practitioners and volunteers for their incredible efforts over the past year. It is entirely thanks to our people that we’re able to continue delivering the very best services to our patients, families and visitors. Our positive patient feedback remains testament to their dedication and we’re proud of what we’ve achieved.
We’d like to express our deepest gratitude to our donors and those who’ve contributed to our fundraising drives, which have enabled us to make numerous improvements to our facilities and equipment. In particular, our heartfelt thanks to the estates of the late Noel Frye, Williamina McBeath Todd and the Estate of Alexander Mactier and the Mactier Family for the incredibly generous gifts in their wills.
We’d also like to thank the Castlemaine community and those living in and around the Mount Alexander Shire. In the past year, we’ve felt privileged to be able to forge strong relationships with community groups like the Castlemaine Men’s Shed and Rotary. It is humbling to see the high regard the community has for Castlemaine Health and we look forward to continuing to deliver the standard of service that this community deserves.
Thanks for a great year.
Sharon Fraser Board Chair
Ian Fisher CEO
02
Catchment
Services
Castlemaine Health offers a comprehensive range of services for residents of Mount Alexander Shire, as well as sub-regional community services for residents of Mount Alexander, Mount Macedon and Goldfields Shires. Our surgical services also play an important role in reducing waiting times for people within the Loddon Mallee region.
Acute/sub-acute(50 staffed beds)
– Medical
– Obstetric
– Paediatric
– Rehabilitation
– Geriatric Evaluation and Management
– Surgical
– Urgent Care
Residential Aged CareHigh Care (90 beds)
– Ellery House (60 beds)
– Thompson House (30 beds)
Low Care (67 beds)
– Spencely (20 beds)
– Penhall (32 beds)
– Thompson House (15 beds)
Transition Care (6 beds/places)
– Rehabilitation (4 beds)
– Community (2 places)
Respite
Community– District Nursing Services
and Palliative Care
– Adult Day Service
– Community Rehabilitation Centre (including Allied Health and Continence Service)
– Health Independence Programs (HIP) including Subacute Care Services (non-admitted SACS), Complex Care, Post-Acute Care
– Volunteers Program and Patient Transport
– Early Childhood Intervention Program
Client Services– Medical
– Nursing and Personal Care
– Social Work
– Podiatry
– Occupational Therapy
– Physiotherapy
– Speech Pathology
– Dietetics
– Continence Advisory Service
– Pharmacy
– Psychiatry
– Pastoral Care
– Infection Control
– Recreational activities
– Pathology (provided on site by Australian Clinical Labs)
– Radiology and ultrasonography (provided on site by Bendigo Radiology)
Corporate Services– Engineering
– Supply
– Transport
– Human Resources
– Health Information Services
– Marketing, Communications and Fundraising
– Finance
– Occupational Health and Safety
– Quality and Risk
– Food Services
– Payroll
– Laundry
– Environmental Services
– Information Technology
Training and Development – Staff Education and Professional
Development
– Traineeships in Administration
– Graduate Nurse Program
– Goldfields Hub, Monash University 4th Year MBBS
– Health promotion
– Student placement program with numerous Australian Universities and registered training organisations
– Work Experience Program
03
ANNUAL REPORT
2017 18Governance and Structure
Organisation chart
THE COMMUNITY
Board Of Management
Chief Executive Officer - Ian Fisher
Executive Director Community ProgramsDianne Senior
Community Rehabilitation Centre:
• Occupational Therapy
• Physiotherapy
• Speech Therapy
• Dietetics
• Podiatry
• Social Work
• District Nursing / Palliative Care
• Adult Day Service
• Early Intervention Program
• Continence Advisory Service
• Complex Care (formerly HARP)
• Volunteers
• Social Support
Executive Director Nursing Kathleen Fair
Acute Medical/ Surgical Services
After Hours Managers
Clinical Resource Unit
Infection Control
Midwifery
Operating Suite/ Day Procedure Unit
Radiology / Pathology
Recreation
Rehabilitation Services
Residential Services:
• Ellery House
• Thompson House
• Penhall
• Spencely
Training & Development
Transitional Care
Urgent Care Centre
Pharmacy
Director Medical ServicesDr Peter Sloan
Visiting Medical Officers
Specialist Medical Officers
Executive Director Corporate Services Kerryn Healy
Engineering
Finance:
• Payroll
Health Information Services
Human Resources:
• OH&S
Information Technology
Contract Management
Support Services:
• Fleet
• Laundry
• Environmental Services
• Food Services
• Supply
• Security
Marketing and Communication
Quality and Risk
04
Responsible Bodies DeclarationIn accordance with the Financial Management Act 1994, I am pleased to present the report of operations for Castlemaine Health for the year ending 30 June 2018.
Sharon Fraser Board Chair
Castlemaine 06 July 2018
Manner of establishment and relevant ministersCastlemaine Health is a public hospital incorporated under the Health Services Act 1988. It has a variety of programs and services funded by the State Government. Our ministers are the Hon. Jill Hennessy MP, Minister for Health and Ambulance Services; the Hon. Martin Foley MP, Minister for Mental Health, Housing, Disability and Ageing; and the Hon. Jenny Mikakos MLC, Minister for Families and Children.
Board of ManagementThe Board of Management oversees the governance of the health service and ensures that services provided comply with Health Act 1988 requirements and Castlemaine Health by-laws.
The Act requires members to act with integrity and objectivity at all times. They must declare a pecuniary interest during Board debate when applicable and withdraw from proceedings. There were no occasions that required declaration this year. Conflict of interest is declared during Board proceedings, in accordance with Castlemaine Health’s by-laws.
Board members serve in a voluntary capacity and do not receive payments. A number of sub-committees consisting of board members, staff, Visiting Medical Officers and community members advise and recommend on relevant matters.
The Board of Management meets on the last Monday of each month to deal with a formal agenda and the Chief Executive Officer reports on the health service’s performance. Meetings commence at 6.30pm in the Board Room at Castlemaine Health and are open to the public.
Board MembersMs Sharon Fraser Chair (December 2017 – June 2018)
MBA (Management), Bachelor of Applied Science (Speech Pathology)
Sharon is a principal consultant for Sharon Fraser Consulting. She has hands-
on experience implementing Collective Impact within the Australian context. Through her work she explores new ways of connecting people, ideas, sectors, languages, leadership approaches and wisdom to introduce long-lasting change. Sharon’s appointment expires 30 June 2019.
Mr Garry Fehring Vice Chair (May 2017 – June 2018)
Bachelor of Nursing, Grad. Dip. Nursing Management, Registered Nurse, Cert. Oncology Nursing, Cert. Rehabilitation Nursing
Garry is a Registered Nurse whose background includes professional experience at The Alfred, Peter MacCallum Institute, Royal Talbot Rehabilitation Centre (Austin Health) and the Epworth Hospital. Garry’s appointment expires 30 June 2020.
Ms Peggy Anne Ronnau Bachelor of Social Science, GAICD
With a Bachelor Degree in Social Science and a keen interest in community wellbeing, Peggy brings strong knowledge of the service sector and experience as a
corporate services executive. She has long been an advocate for improved mental services and has worked with homeless people in inner Melbourne who experience mental illness and in the Local Government sector, encouraging others to redesign their work roles to build better jobs. Peggy’s appointment expired 30 June 2018.
Ms Carolyn Wallace Master of Public Policy & Management, BA, Grad. Dip. Education Chair July 2017 - November 2017
Carolyn has 20 years’ experience in regional development, health and community services. Her specific interest is around how the public, private and
community sectors can work together to improve access to services, resources and opportunities for growth. Carolyn’s appointment expires 30 June 2019.
Mr Adam Sevdalis Bachelor of Economics, MBA
Adam is an accomplished commercial and strategic advisor specialising in health and aged care. He has advised numerous for-profit and not-for-profit
organisations including aged care/retirement living operators, public and private hospitals, community health organisations and corporate healthcare providers. Adam’s appointment expired 30 June 2018.
Mr David Goldberg BA, LLB (Hons), GAICD
David is an experienced General Counsel, having led the legal functions in a number of major and complex public entities. He has broad experience leading governance,
risk management, compliance, procurement and ethical standards functions. David’s appointment expired 30 June 2018.
Governance and Structure (continued)
05
ANNUAL REPORT
2017 18
Ms Anna Skreiner LLB, Grad. Dip. Applied Corporate Governance
Anna’s areas of expertise are financial services, corporate governance, stakeholder management, regulation and compliance and
dispute resolution. She has extensive legal practice and government experience. She’s also experienced in providing leadership, strategic direction and advice, and managing a wide range of investigations, regulatory outcomes and court proceedings concerning corporate governance and financial services issues. Anna’s appointment expires 30 June 2019.
Dr Simon Judkins MBBS, Fellow of the Australasian College of Emergency Medicine (ACEM)
Simon is the Deputy Director of Emergency Medicine at Austin Health, where he has worked for the past 20 years. He has a passion for resource stewardship and
health sustainability and is also a peer support coach, supporting clinicians through challenging situations. Simon is a strong advocate for equity and access to healthcare for all. Simon’s appointment expires 30 June 2020.
Ms Vicky Mason Master of Public Health, MBA, GAICD
Vicky is an innovative, adaptive and resilient leader with significant experience in a range of executive roles across Victorian State and local governments, health
and community services and the private sector. She is committed to continuous improvement and applying her learnings to the benefit of organisations and communities. Vicky’s appointment expires 30 June 2020.
Ms Kerry Anderson Grad. Dip. Direct Marketing, Dip. Training & Assessment, GAICD
Kerry is a central Victorian author, businesswoman, and community advocate. She is passionate about rural and regional Australia. She empowers
businesses, groups and communities to embrace change and create new opportunities for themselves. Kerry’s appointment expires 30 June 2020.
Sub-committeesCredentials and Medical Appointments Advisory Committee
Ms Peggy Ronnau (Chair) Dr Simon Judkins Dr Richard Mayes (Independent Member)
Chief Executive Officer Evaluation Committee
Ms Sharon Fraser (Chair) Ms Peggy Ronnau Mr Garry Fehring Ms Carolyn Wallace
Finance Committee
Mr Rod Lester (Chair) (Independent Member) Mr Adam Sevdalis Ms Kerry Anderson Ms Carolyn Wallace
Community Consultation Committee
Ms Peggy Ronnau Ms Vicky Mason Ms Elizabeth Grainger, Chair (Independent Member) Ms Ann Roman (Independent Member) Mr Bob Forde (Independent Member) Ms Marleen Bell (Independent Member) Ms Margaret Rasa (Independent Member) Ms Bev Orgill (Independent Member) Ms Moira Kean (Independent Member) Mr Mark Little (Independent Member)
Audit and Risk Management Committee
Mr Rod Lester (Independent Chair) Ms Sharon Fraser (Independent Board Member) Ms Anna Skreiner (Independent Board Member)
Ms Vicky Mason (Independent Board Member)
Clinical Governance and Quality Committee
Ms Peggy Ronnau (Chair) Dr Simon Judkins Mr Garry Fehring Dr Helen Dewhurst (Medical Staff Group) Ms Liz Grainger (Independent Member) Mr David Stratton (Independent member)
Executive ManagementExecutive directors meet with the Chief Executive Officer weekly to discuss strategic and operational issues relating to the management of the organisation. Our executive directors are:
Mr Ian Fisher, Chief Executive Officer Ms Kerryn Healy, Executive Director of Corporate Services Ms Dianne Senior, Executive Director of Community Programs Ms Kathleen Fair, Executive Director of Nursing Services Dr Peter Sloan, Director of Medical Services
Governance and Structure (continued)
06
Statement of Priorities Report
Part A: Strategic Priorities
Goals Strategies Health Service Deliverables Status
Better Health
A system geared to prevention as much as treatment
Everyone understands their own health and risks
Illness is detected and managed early
Healthy neighbourhoods and communities encourage healthy lifestyles
Reduce statewide risks
Build healthy neighbourhoods
Help people to stay healthy
Target health gaps
Further develop plans to reduce falls including installation of improved nurse call systems, regular trending of falls data and individual analysis of falls to determine preventative strategies.
Achieved Nurse call system implemented and reporting of falls data reviewed and improved.
Identify gaps in mental health support / services and implement strategies to reduce those gaps through the Mount Alexander Health Services Alliance (MAHSA) and in collaboration with Bendigo Health Mental Health Services.
Achieved
Held one meeting in September with Bendigo Health regarding issues related to providing mental health support and care. Discussions with Bendigo Health are occurring concurrently to highlight challenges with Bendigo Health’s support.
Matter on the agenda for Mount Alexander Strategic Health and Wellbeing Partnership.
Executive Director Community Programs has been attending Mt Alexander Suicide Response Meeting.
Support the awareness and prevention of bowel cancer in collaboration with Castlemaine community groups.
Achieved
Relationship with Rotary Castlemaine and Castlemaine Health established to promote awareness and prevention of bowel cancer.
Increase the referrals to Castlemaine Health’s Cancer Survivorship Service in collaboration with Castlemaine District Community Health service.
Achieved
41 clients currently in the cancer survivorship stream and successfully received funding to increase referrals from the sub-region (ie. Kyneton and Maryborough) for our HIP programs.
Develop and implement activities in collaboration with other services to encourage and support healthy lifestyles and access to services.
Achieved
MOU signed with Castlemaine Secondary College and Castlemaine District Community Health.
Better Access
Care is always there when people need it
More access to care in the home and community
People are connected to the full range of care and support they need
There is equal access to care
Plan and invest
Unlock innovation
Provide easier access
Ensure fair access
Review Castlemaine Health’s service profile through extensive community and stakeholder engagement.
Achieved
Comprehensive community engagement process completed and reported back to the community.
Develop a Hospital in the Home program in conjunction with the GPs.
Achieved
New policy, procedures and admission criteria have been approved. Admissions occurring and will be built on progressively.
Review the palliative care service model to enhance and promote the care of our clients at home with a life-threatening illness.
Achieved
Additional palliative care skills were recruited into District Nursing to enhance and promote the care of clients at home with life threatening illness.
07
ANNUAL REPORT
2017 18Statement of Priorities Report (continued)
Goals Strategies Health Service Deliverables Status
Better Access (continued)
Implement a “Whole of Hospital Model” in family violence prevention and support in conjunction with Bendigo Health.
Achieved
‘Portraits of Respect’ displayed at Castlemaine Health during the 16 days of activism. 93 staff including Board members participated in producing the portraits. 20 staff participated in domestic violence study days in December.
With the assistance of Bendigo Health significant progress made on strategies to increase awareness and implement preventative strategies.
Establish Lesbian, Gay, Bisexual, Transgender and Intersex (LGBTI) inclusion and diversity education for staff utilising HOW2 training. Ensure these diversity questions are included in the patient admission process.
Achieved
Education delivered along with strategies included in the action plan to demonstrate a strong commitment to ensure Castlemaine Health is progressing to be a LGBTI inclusive organisation.
Better Care
Target zero avoidable harm
Healthcare that focusses on outcomes
Patients and carers are active partners in care
Care fits together around people’s needs
Put quality first
Join up care
Partner with patients
Strengthen the workforce
Embed evidence
Ensure equal care
Further develop open disclosure processes in line with the Australian Open Disclosure Framework.
Achieved
Further processes have been developed to increase compliance.
Further develop the review of clinical incidents to assist with the identification of underlying system issues and root causes, and use of this information to improve safety.
Achieved
Clinical incidents are being monitored daily, with in-depth reviews being flagged as necessary.
All Cat 1 and 2 Clinical Incidents are now reviewed by the Quality Coordinator Clinical and reported to the Clinical Governance and Quality Committee (Board Sub-Committee) with case reviews/root cause analysis conducted when appropriate.
Trended data is provided to working parties on falls, pressure injuries, skin tears and medications errors.
Frequent fallers are identified and individual case analysis conducted to ensure adequate controls.
Mandatory actions against the ‘Target zero avoidable harm’ goal:
Develop and implement a plan to educate staff about obligations to report patient safety concerns
Provide regular education sessions to staff in relation to incident reporting and quality activities evolving from patient safety concerns.
Achieved
Education requirements and feedback from NUMS was evaluated.
A training package was developed. Incident and Quality Activity (VHIMS) training has been provided in September and November 2017.
Regular education sessions on Incident and Quality Activity (VHIMS) is included on 2018 Education calendar for all staff.
Part A: Strategic Priorities (continued)
08
Statement of Priorities Report (continued)
Goals Strategies Health Service Deliverables Status
Better Care (continued)
Mandatory actions against the ‘Target zero avoidable harm’ goal (continued):
Establish agreements to involve external specialists in clinical governance processes for each major area of activity (including mortality and morbidity review)
Provide regular peer reviews for Urgent Care, Midwifery, Subacute and Theatre, supported by the Loddon Mallee Regional Clinical Council.
Achieved
Currently have arrangements in place for UCC, Maternity, Sub-acute and Acute. Looking for surgeon to review theatre.
Member of the Loddon Mallee Clinical Advisory Committee.
In partnership with consumers, identify three priority improvement areas using Victorian Healthcare Experience Survey data and establish an improvement plan for each. These should be reviewed every six months to reflect new areas for improvement in patient experience.
Priority 1: Review car parking for clients, develop an improvement plan and measure impact.
Achieved
Car parking reviewed and planning concepts agreed. New secure staff carpark approved for construction.
Priority 2: Review menu and heating of meals, develop an improvement plan and measure impact.
Achieved
New food delivery system has been installed resulting in a higher level of satisfaction and improved feedback.
Priority 3: Review pre-surgery information on expected impact on usual activity post-surgery (especially for patients with young children), amend documentation and measure impact.
Achieved
Review of information has occurred.
Part A: Strategic Priorities (continued)
High quality and safe care
Key performance indicator Target 2017-18 result
Accreditation
Accreditation against the National Safety and Quality Health Service Standards Full compliance Achieved
Compliance with the Commonwealth’s Aged Care Accreditation Standards Full compliance Achieved
Infection prevention and control
Compliance with Hand Hygiene Australia program 80% 89%
Percentage of healthcare workers immunised for influenza 75% 80%
Patient experience
Victorian Healthcare Experience Survey – patient experience Q1
– patient experience Q2
– patient experience Q3
95% positive experience
95% positive experience
95% positive experience
97%
99%
100%
Victorian Healthcare Experience Survey – discharge care Q1
– discharge care Q2
– discharge care Q3
75% positive experience
75% positive experience
75% positive experience
88%
92%
89%
Victorian Healthcare Experience Survey – patient perception of cleanliness Q1
– patient perception of cleanliness Q2
– patient perception of cleanliness Q3
70%
70%
70%
91%
94%
90%
Part B: Performance Priorities
09
ANNUAL REPORT
2017 18Statement of Priorities Report (continued)
High quality and safe care (continued)
Key performance indicator Target 2017-18 result
Adverse events
Number of sentinel events Nil 0
Mortality – number of deaths in low mortality DRGs Nil 1
Maternity and newborn
Rate of singleton term infants without birth anomalies with Apgar score <7 to 5 minutes ≤ 1.6% 0%
Rate of severe foetal growth restriction (FGR) in singleton pregnancy undelivered by 40 weeks ≤ 28.6% 100%
Continuing care
Functional independence gain from an episode of GEM admission to discharge relative to length of stay
≥ 0.39 0.36
Functional independence gain from an episode of rehabilitation admission to discharge relative to length of stay
≥ 0.645 0.958
Strong governance, leadership and culture
Key performance indicator Target 2017-18 result
Organisational culture
People Matter Survey - % staff with an overall positive response to safety and culture questions 80% 79%
People Matter Survey - % staff with an overall positive response to the question “I am encouraged by my colleagues to report any patients safety concerns I may have”
80% 88%
People Matter Survey - % staff with an overall positive response to the question “Patient care errors are handled appropriately in my work area”
80% 79%
People Matter Survey - % staff with an overall positive response to the question “My suggestions about patient safety would be acted upon if I expressed them to my manager”
80% 82%
People Matter Survey - % staff with an overall positive response to the question “The culture in my work area makes it easy to learn from the errors of others”
80% 72%
People Matter Survey - % staff with an overall positive response to the question “Managers are driving us to be a safety-centered organisation”
80% 82%
People Matter Survey - % staff with an overall positive response to the question “This health service does a god job of training new and existing staff”
80% 61%
People Matter Survey - % staff with an overall positive response to the question “Trainees in my discipline are adequately supervised”
80% 63%
People Matter Survey - % staff with an overall positive response to the question “I would recommend a friend or relative to be treated as a patient here”
80% 85%
Effective financial management
Key performance indicator Target 2017-18 result
Finance
Operating result ($m) 0.25 Refer to AFS
Average number of days to paying trade creditors 60 days Refer to AFS
Average number of days to receiving patient fee debtors 60 days Refer to AFS
Public and private WIES activity performance to target 100% Refer to AFS
Adjusted current asset ratio 0.7 or 3% improvement from health service base
target
Refer to AFS
Number of days of available cash 14 days Refer to AFS
Part B: Performance Priorities (continued)
10
Statement of Priorities Report (continued)
Funding type 2017-18 activity achievement
Acute admitted
WIES Public 2,858
WIES Private 556
WIES DVA 50
WIES TAC 8
Other admitted 0
Acute Non-Admitted
Emergency Services 6,176
Specialist Clinics – Public 3,289
Specialist Clinics - DVA 9
Subacute & Non-Acute Admitted
Subacute WIES – GEM Private 45
Subacute WIES – GEM Public 100
Subacute WIES – Rehabilitation Private 49
Subacute WIES – Rehabilitation Public 143
Subacute WIES - DVA 19
Subacute Non-Admitted
Palliative Care Non-Admitted 807
Health Independence Program - Public 16,786
Health Independence Program - DVA 116
Aged Care
Residential Aged Care 54,110
HACC 4,539
Other
Health Workforce 8
Other specified funding 0
Total Activity 89,665
Part C: Activity and Funding
ConsultanciesDetails of consultancies (under $10,000)
In 2017-18, there were no consultancies where the total fees payable to the consultants were less than $10,000.
Details of consultancies (valued at $10,000 or greater) In 2017-18, there were three consultancies where the total fees payable to the consultants were $10,000 or greater. The total expenditure incurred during 2017-18 in relation to these consultancies is $111,190 (excl. GST). Details of individual consultancies can be viewed at www.castlemainehealth.org.au/about-us/corporate-consultancy-details
Part B: Performance Priorities (continued)
11
ANNUAL REPORT
2017 18Nursing & Midwifery Care, Pharmacy & Staff Development
Kathleen Fair, Executive Director Nursing
It has been a very busy year for the nursing directorate. We continue to strive to meet the community’s expectation of excellent clinical and residential care,
while reviewing current services and ensuring ongoing quality and safety.
Achievements– Residential Aged Care successfully
achieved three-yearly Australian Aged Care Quality Agency accreditation in March 2018
– Over 3,300 procedures performed in our Operating Suite, an increase of almost 4%
– Implementation of Sub-Regional Elective Surgery Initiative (SESI), assisting in the reduction of regionally waitlisted surgical procedures
– Almost 6,200 people treated in Urgent Care Centre (UCC), an increase of over 5%
– Commission of independent review of UCC, providing assurance that we are providing care consistent with our capability framework, and offering suggestions for future consideration
– Six staff awarded scholarships by the Murray Primary Health Network to complete Rural and Isolated Practice Endorsed Registered Nurses (RIPERN) training
– Undertaking and completing the Castlemaine Health Maternity Services Roadmap 2018-23
– Successful grant application for $780,000 to replace ageing beds across all areas
– Implementation of Birthing Outcomes System (BOS) electronic documentation program
– Very low hospital acquired infection rates, targets met for hand hygiene and on track for staff influenza vaccinations (to be achieved by end of July 2018)
Operating Suite We’ve again increased the number of surgeries performed over this financial year. An agreement is in place to assist Bendigo Health reduce their elective waitlist via the Sub-Regional Elective Surgical Initiative (SESI), by undertaking more lower risk procedures at Castlemaine Health. We have engaged more surgeons to assist with this initiative which is expected to be ongoing.
Maternity ServicesWe had 41 babies born and a further 21 mums and babies transferred back to us from higher level services.
A key achievement for this service has been the completion of the Maternity Services Roadmap 2018-23, which provides direction and provision for Maternity Care at Castlemaine Health over the next five years. This was a project led by an external consultant and which included members from the Maternity Service, all local General Practitioners/Obstetricians, community members, Department of Health and Human Services, and executive and Board members.
We’ve also fully implemented the Birthing Outcomes System (BOS) clinical management system to more accurately capture maternity health information.
Residential Aged CareIn March 2018 Castlemaine Health successfully completed its three-yearly accreditation survey conducted by the Australian Aged Care Quality Agency. The successful outcome emphasises the experience and quality of our care, and reflects our efforts to continually improve the experience and quality of life for residents.
We have increased our use of a program initiated by Bendigo Health called ‘Geri-Connect’, which uses teleconferencing to enable geriatricians, nurse practitioners and aged care staff to assess residents in consultation with the resident’s own GPs. The program has been expanded to give all residents the opportunity for a detailed geriatric assessment and care plan recommendation for discussion with the resident’s own GP and care team, without the need to leave their residence.
Connolly SubacuteThe Subacute unit continues to provide excellent team care in rehabilitation and Geriatric Evaluation and Management (GEM) services and through the Transitional Care Program (TCP).
We entered into an agreement with Bendigo Health at the beginning of the financial year to have geriatrician services provided three days per fortnight. This has provided numerous benefits, including more cohesive patient management with Bendigo Health, decreased length of stay, improved patient flow and more comprehensive care for patients.
Urgent Care ServicesThe number of visits to our Urgent Care Centre (UCC) continues to grow with almost 6,200 presentations this year, an increase of more than 5% over last year. Medical services are provided by local GPs who work with UCC staff to provide care for our community.
Several nurses in the unit have received scholarships to undertake Rural and Isolated Practice Endorsed Registered Nurses (RIPERN) training which will increase the knowledge and skill of the dedicated UCC staff. This training will continue throughout 2018.
Geroe Acute Our Acute unit has experienced a slight rise in inpatient numbers at over 1,500 admissions, which includes medical admissions from our local community and surgical admissions from the larger Bendigo region.
PharmacyOur onsite pharmacy service dispenses medication to Acute and Subacute services. Over 3,500 scripts are dispensed annually, along with medication information and education for patients on discharge.
Last year we replaced our intravenous (IV) pump fleet which required significant training for staff. This year this was expanded to the pumps used in theatre for anaesthetics and patient controlled analgesia (PCA). This was accomplished by pharmacy developing protocols to be programmed into these machines
12
Nursing & Midwifery Care, Pharmacy & Staff Development (continued)
according to the prescriptions requested by anaesthetists.
Infection ControlHospital acquired infection rates continue to be very low and we continue to work hard to reduce the risk of infection for patients. We consistently achieve the targets set by DHHS for hand hygiene. Staff influenza vaccination rates are on target for the 2018 influenza season.
Staff Development Ongoing education is a critical element of providing high quality care and services to our patients, clients and residents. As a teaching hospital we support clinical experience for medical, nursing, allied health, pharmacy and personal care students.
One of the key ways that education supports our clinical staff is through the Graduate Nursing program – a partially funded initiative that provides support for eight new nurses yearly and exposes them to nursing in several areas of the hospital over twelve months. This increases their exposure to areas that they may not have known much about, and gives them an opportunity in a supported manner to develop their new skills after graduation.
13
ANNUAL REPORT
2017 18Community Programs
Dianne Senior, Executive Director Community Programs
Community Programs provides a range of multidisciplinary services including outpatient rehabilitation, functional assessment,
therapeutic intervention, home nursing and palliative care, care coordination and social support to clients of all ages in the Mount Alexander, Macedon Ranges, and Goldfields shires.
Achievements– Reviewed all services to improve
alignment with funding guidelines, improve access and enhance clinical care and expertise.
– The Cancer Survivorship project funded by the DHHS Victorian Cancer Survivorship Program (VCSP) finished on 1 May 2018 and the final report was submitted. All key deliverables were met and the evaluation indicated some very good outcomes for the clients involved with the service. A key accomplishment of this project has been the successful establishment of a sustainable multidisciplinary cancer survivorship service that is fully integrated into the existing outpatient services at Castlemaine Health.
– Podiatry will now offer services at Castlemaine District Community Health.The advantages are easier access for some clients who do not have transport as CDCH is in town and the ability for some clients to see Diabetes Educators and podiatrists at the same time.
– We received a grant from Home and Community Care Program for Younger People (HACC PYP) to hold a ‘Carers’ Day Out’ and ‘Siblings Rock’ event during Carers Week in October.
– Adult Day Service has provided supported holidays throughout the year. These holidays offer much-needed respite for carers along with a range of activities for participants. These included a carers couple holiday at Mornington held in October, 2017, an Out and Out holiday to Geelong in
October, 2017 and an Active Tuesday holiday to Echuca in May, 2018.
– We achieved ‘registered provider’ status in the National Disability Insurance Scheme (NDIS) for our Early Childhood Intervention Service and the ‘Out and Out Club’ which is part of our Adult Day Service.
– Successful in application for a further grant from DHHS for Cancer Survivorship for older people to commence in June 2018.
– Commenced Lymphoedema service in the Community Rehabilitation Centre in January 2018, which has demonstrated excellent outcomes for people living with lymphoedema in the local community and reduced the need for travel to Bendigo or Melbourne for services.
– Introduction of NDIS Allied Health services through the Community Rehabilitation Centre.
– The Speech Pathologists presented their new triage tool for dysphagia referrals from residential aged care at the National Speech Pathology Conference in Adelaide.
Health Independence Programs Health Independence Programs (HIP) funding is a primary funding source for Castlemaine Health’s allied health and nurse-led outpatient programs, and services are open to people from across Macedon Ranges, Mount Alexander and Central Goldfields shires. A key aspect of HIP services is the provision of goal-directed care coordination and multidisciplinary intervention.
These services are specifically designed to support those who require rehabilitation following significant injury, surgery or illness, or who need coordinated multidisciplinary support to manage chronic conditions. Our multidisciplinary teams provide highly coordinated care and expertise in specific clinical rehabilitation areas such as:
– neurological rehabilitation
– hand therapy
– musculoskeletal disorders/orthopaedic rehabilitation
– cardiac rehabilitation
– pulmonary rehabilitation
– falls and balance
– cognitive rehabilitation
– pain management
– cancer rehabilitation and survivorship
– continence management.
Several new services have been introduced this year and include:
– Lymphedema clinic: for management of swelling due to lymphedema
– Vestibular rehabilitation service: rehabilitation therapy for conditions such as vertigo, dizziness and visual disturbance
– Healthy Hearts cardiac failure program: exercise and education for chronic cardiac disease
– Food School: program run by Dietitians, Speech Pathologists and Occupational Therapists to support young children who are fussy eaters or have feeding difficulties.
This year also saw a partnership with the Victorian Centre of Excellence in Eating Disorders (CEED) to train CRC staff as facilitators for a Beyond Diets program at Castlemaine Health. Beyond Diets is a non-diet approach to healthy eating for adults who wish to learn about maintaining good health and positive body image for every size and shape.
Commonwealth Home Support Program The Commonwealth Home Support Programs (CHSP) includes Podiatry, Occupational Therapy, Physiotherapy, Continence Service, District Nursing and Adult Day Services. Over the past twelve months these services have transitioned to CHSP for those aged 65+ years and those aged 50+ years from an Aboriginal or Torres Strait Island background. CHSP is funded by the Commonwealth Government.
Home and Community Care The HACC PYP program will continue for those aged under 65 years and those under 50 years from an Aboriginal or Torres Strait Islander background who
14
Community Programs (continued)
have a disability or who are caring for someone with a disability. Work is already underway to transition HACC PYP clients, where appropriate, to the NDIS over the next 12 months. HACC PYP is funded by the Victorian Government.
Children’s ServicesOur Children’s Centre provides Occupational Therapy, Physiotherapy, Speech Pathology, Dietetics, Podiatry and Continence Services to children in the local community and surrounding areas. These services, along with a transdisciplinary keyworker approach for Early Childhood Intervention Services, can also be accessed by children who have plans under the NDIS as Castlemaine Health is a registered NDIS Provider.
District Nursing and Palliative Care ServiceThis year has seen some significant changes in the service. A new software system has been implemented which will enable more comprehensive reports on our clients and better reporting capabilities for DHHS. The next step is for each member of the District Nursing and Palliative care team to be provided with a tablet device to enable them to access to information in client’s homes and record visit and care details. A new role of Clinical Coordinator has also been created to provide a more responsive service for referrals and more clinical support for palliative care staff and clients.
Family Violence At Castlemaine Health, we recognise that family violence across the life span is a complex and serious community issue. On White Ribbon Day (22 November) we launched our ‘Portraits of Respect’ display. We photographed 93 people at Castlemaine Health holding statements that reflected a stand against family violence. Those photographed included staff and members of the public. The portraits are displayed in a variety of areas across Castlemaine Health. They send a personal message about our values here at Castlemaine Health and those of the community. We have encouraged staff to attend education about domestic violence that helps enable us to identify those people at risk and be able to refer on to specialist services.
DiversityAt Castlemaine Health we have been working to celebrate diversity and create a culture of inclusion. We have a shire-wide Diversity Plan developed in conjunction with our partners Mount Alexander Shire and Maldon Hospital. Castlemaine Health hosted a very successful Close the Gap lunch with speakers from the education and health sectors. Kerri Douglas, an Aboriginal woman and artist who works for the Victorian Department of Education and Training as a KESO worker, spoke in depth about issues in education. Her presentation was followed by Paul Frye, Principal at Castlemaine Secondary College, and Kathleen Fair from Castlemaine Health. Education sessions have included ‘Asking the Question’ training which was hosted by local Aboriginal Elders in 2017. In 2018 we have had two Cultural Awareness training sessions for staff hosted by Bendigo and District Aboriginal Cooperative. Castlemaine Health has purchased artwork and has an ongoing commitment to continue building upon this. Our Aboriginal Liaison Officer has actively consulted with the local Aboriginal community to complete a survey of their needs.
Two staff attended the HOW2 training program then presented their learnings to the Castlemaine Health Board of Management. They outlined the Rainbow Tick standards and discussed ways to improve LGBTI inclusion in health care. This has led to a review of the Access and Inclusion Plan to, among other things, incorporate a celebration of important days on the LGBTI calendar and develop a more inclusive approach throughout the organisation. This year the International Day Against Homophobia, Biphobia, Intersexism and Transphobia (IDAHOBIT) was celebrated with the raising of the rainbow flag and information slides being made available on the intranet. On the International Transgender Day of Visibility information slides were available on the intranet along with a screensaver.
15
ANNUAL REPORT
2017 18Corporate Services
Kerryn Healy, Executive Director Corporate Services
Corporate Services support the care delivery areas of Castlemaine Health to deliver great services to our community. The support services include Health
Information, Information Technology, Human Resources, Food and Environmental, Finance, Payroll, Supply and Resident Laundry.
Achievements– Two new software applications were
rolled out during the year; the Birthing Outcome Systems (BOS) used in maternity services and UNITI which is used in District Nursing.
– Organisation readiness to upload discharge summaries to the Commonwealth Government’s My Health Record when the system becomes opt out by the end of 2018.
– Developed an Occupational Violence and Aggression (OVA) prevention and management plan.
– Completed stage two of the main building security system to provide increased security especially after hours.
– Increased wellbeing support to staff with an Employee Assistance Program provider now available on-site one day per week to improve access to the confidential counselling service.
Finance and PayrollDuring 2017-18 the state-wide Oracle Finance System was upgraded. This upgrade presented a number of challenges which are progressively being resolved.
Direct Debit payment functionality was implemented for Residential Aged Care which provides a more convenient mechanism for account payments.
Finance continues to develop a multi-skilled team to support leave replacement and succession planning.
Payroll has expanded its role as a sub-regional provider and now offers payroll processing services to six other health services. The strategy to provide sub-regional services is designed to support the provision of a skilled and balanced payroll team for Castlemaine Health and its service customers.
Gifts in Wills
We were deeply and sincerely grateful to receive very generous Gifts in Wills from the Estate of the Late Noel Frye for $100,000, the Estate of Alexander Mactier and the Mactier Family for $50,000 and the Estate of the Late Williamina McBeath Todd for $71,448.52.
Fundraising
In October Run the Maine raised $13,500, April’s Murray to Moyne cycle relay raised $68,211 (includes the generous $50,000 Gift in Will from the Estate of Alexander Mactier and the Mactier Family), our June Tax Appeal raised $5,495 and from the Colliers Charitable Foundation we received $30,000.
We would like to express our sincere thanks to our donors, committees, supporters and the local community, who have contributed to our various fundraising efforts over the past 12 months. Your support is invaluable in helping us deliver high quality care and equipment, and keep families close in our local community.
Application of employment and conduct principles Castlemaine Health is committed to upholding the principles of merit and
equity in all aspects of the employment relationship. To this end, we have policies and practices in place to ensure all employment-related decisions, including recruitment, promotion, training and retention, are based on merit. Any complaints, allegations or incidents involving discrimination, vilification, bullying or harassment are taken seriously and addressed. All staff are provided with education and training on their rights and responsibilities and are provided with the necessary resources to ensure equal opportunity principles are upheld.
Human ResourcesDuring 2017-18 Human Resources continued operating a shared services model for the sub-region, providing a range of support to other health agencies including Maldon Hospital, Maryborough District Heath, Inglewood and Districts Health Service and Heathcote Health.
A focus on Castlemaine Health staff health and wellbeing was maintained and enhanced. Two Human Resources staff undertook training and accreditation as Return To Work Coordinators to support injured staff members through their return to work journey. The Employee Assistance Program was strengthened with an Employee Assistance Provider on-site one day per week to make it easier for staff to access the confidential counselling service.
Human Resources have continued to roll out the Lead to Achieve program, which is based on Studer principles. The program helps establish and track key performance indicators for the organisation. It also promotes employee engagement by encouraging leaders to regularly meet with their direct report staff for rounding conversations with the aim of creating and/or maintaining open and candid communications.
Human Resources have also been developing Castlemaine Health’s
Hospitals labour category June current month FTE June YTD FTE2017 2018 2017 2018
Nursing 178.77 189.41 177.31 182.12
Administration and Clerical 66.40 65.50 62.46 65.91
Medical Support 22.46 19.72 21.32 20.63
Hotel and Allied Services 90.81 85.17 92.83 92.16
Medical Officers (including Hospital Medical Officers) 1.24 1.35 1.37 1.16
Sessional Clinicians .34 .39 .21 .27
Ancillary Support (Allied Health) 36.78 37.91 37.82 37.61
Total 396.80 399.45 393.33 399.85
16
Corporate Services (continued)
Workforce Plan. The work is exploring Castlemaine Health’s current status and future needs. The plan is expected to drive identification of training requirements and opportunities, as well as the creation of clear succession plans for key dependency positions throughout the organisation.
Continuous improvement was also a focus, with the Human Resources team regularly dedicating time to reviewing, streamlining, and (when necessary) overhauling processes, procedures and policies. This has included a shift towards paperless operations whenever possible with new employee files now being managed electronically and the creation of updated forms intended for completion on-screen, rather than printing to hard copy.
Occupational Health and SafetyA proactive three-year plan has been devised to support and build upon our organisational culture of workplace health and safety (WHS) and our responsiveness to both internal and regulator identified risk profiles. Specific areas of focus are:
– leadership capabilities through education and KPIs
– injury prevention through targeted initiatives
– healthy work environment and risk management processes
– staff health and wellbeing through targeted initiatives
– well-supported return to work practices, including manager education
Over the past 12 months, a range of key action areas have helped us to continually improve our WHS management systems and embed WHS considerations in all organisational operations and processes. These include:
– implementing a new system for ongoing internal auditing of our WHS management system against the current Australian Standard for Occupational Health and Safety Management Systems
– developing an Occupational Violence and Aggression (OVA) prevention and management plan
– implementing the delivery of mandatory Management of Clinical Aggression (MOCA) training to all staff
– undertaking a review of procurement processes to ensure consideration of WHS principles when contracting/procuring goods and services
– publishing our WHS policy statement on our website.
Over the next 12 months, we will:
– review our processes and management of manual handling
– develop a plan to guide our management of mental health within the workplace
– implement and review planned actions from the OVA action plan
– provide WHS management and Return To Work training for managers.
Staff representation as Health and Safety Representatives (HSRs) remains
a strong component of our consultative process and proactive health and safety management. Departmental budgeting allocates resources to cover their initial and annual refresher training and monthly activity days needed for attending their WHS management responsibilities. The CEO chairs monthly WHS meetings that involve, support and educate executive level staff on WHS issues and initiatives.
The majority of our occupational violence incidents come from our aged care areas primarily due to aggression from residents with dementia or delirium. A review of the proactive management of these types of incident is part of the OVA action plan.
There has been a slight decrease in the number of overall standard Workcover claims per EFT for 2017-18 with a significant reduction in the average cost per claim and number of compensation days paid. This is indicative of effective early intervention strategies and rehabilitation programmes where staff are supported to return to work in a timely and sustainable manner.
Engineering Projects completed during 2017-18 included stage two of the main building security system upgrade and a direct digital control upgrade for the kitchen’s air-conditioning system controls to reduce energy usage. Projects planned for 2018-19 include improved secure parking for after-hours staff, various plant upgrades and replacements, and the installation of a reverse osmosis water purification plant for theatre sterilisation processes.
Occupational violence statistics 2017-18
Workcover accepted claims with an occupational violence cause per 100 FTE 0
Number of accepted Workcover claims with lost time injury with an occupational violence cause per 1,000,000 hours worked. 0
Number of occupational violence incidents reported 58
Number of occupational violence incidents reported per 100 FTE 14.5
Percentage of occupational violence incidents resulting in a staff injury, illness or condition 19%The following definitions apply: Occupational violence - any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment. Incident – an event or circumstance that could have resulted in, or did result in, harm to an employee. Incidents of all severity rating must be included. Accepted Workcover claims – Accepted Workcover claims that were lodged in 2017-18.Lost time – is defined as greater than one day. Injury, illness or condition – This includes all reported harm as a result of the incident, regardless of whether the employee required time off work or submitted a claim.
Occupational Health and Safety statistics 2015-16 2016-17 2017-18Total number incident reports (including hazard and near miss) for the year per 100EFT staff members 49 58 54
Number ‘lost time’ standard claims for year per 100EFT staff members 1.25 3.5 3
Average cost per claim for year $74,098 $69,154 $37,155
17
ANNUAL REPORT
2017 18Corporate Services (continued)
Information Technology2017-18 was another busy year in the IT Department. Late last year we completed an upgrade of 80 computers with more memory and solid state drives, which has improved their performance while also reducing power consumption. The in-house IT Helpdesk system was upgraded which has seen over two thousand Helpdesk jobs resolved in the last twelve months.
Two new software applications were rolled out during the year, Birthing Outcome Systems (BOS) and UNITI. BOS will reduce the burden of paperwork and periodic reporting, allowing clinicians to focus on care of mothers and neonates. UNITI is used in District Nursing to record and report on individual care provided to people in their own homes across the Mount Alexander Shire.
A major project currently underway and due for completion in 2018 is the migration of our phones and related systems onto a Unified Communications (UC) platform. UC will transfer our phone system from a very old PABX platform onto the Loddon Mallee Rural Health Alliance (LMRHA) Wide Area Network using VoIP (Voice over Internet Protocol). The project is being overseen by the LMRHA, who lead ICT upgrades for the Loddon Mallee region.
The Unified Communications project will result in all Castlemaine Health phone numbers being within one number range instead of the current five different number ranges. When the UC project is completed our phone numbers will retain the same last three digits but will have a new five digit prefix. More information about these changes will be made available on the Castlemaine Health website and in local news publications and other sources.
The total ICT expenditure incurred during 2017-18 is TBC (excluding GST) with the details shown in the table below.
Support Services Our Food Services combined with Environmental Services, Supply, Laundry, Fleet Management and Café departments, have seen significant change and improvements over the past year.
Environmental Services continues to achieve better than state average Acceptance Quality Limit (AQL) scores across our three risk types in external cleaning audits. Our external auditor’s report shows that our average score was 89.5 against the AQL 86.6 average. This is a very pleasing result and a testament to our dedicated workforce. In July 2017, Castlemaine Health introduced steam cleaning across our site. This change supports our Sustainability and Environmental Plan 2016-21 as it has allowed us to dramatically reduce the use of chemicals and provide a safer environment for staff, patients and residents alike.
A barcode scanning project is being rolled out across the organisation to improve the supply process, minimise wastage and standardise purchasing activity. We have consulted and entered into a partnership with Maryborough District Health Services to assist with improving their supply requirements and to roll out barcoding throughout their organsation.
Our Food Services department has once again excelled in delivering in excess of 300,000 meals to patients and residents at both Castlemaine Health and Maldon Hospital, and meals on wheels recipients. In October 2017 the BURLODGE food heating system was introduced. This system involves food being prepared and plated cold in our main kitchen, allowing time for our chefs to ‘present their food’. The food is then placed into the heating units which refrigerate the food in the kitchen and then heat the food in the exact location it is to be served in. Our patients and residents now receive piping hot meals that cater for all dietary and medical requirements. From a compliance
Natural Gas consumption is down 5.8% compared to the previous year. This result is due to a reduction in hot water attributable to laundry use.
Electricity consumption is down 0.70% compared to the previous year. Whilst efficiency gains have been achieved through continued LED lighting, airconditioning control and computer upgrades, these have been offset, to a certain extent, by increased power consumption of the recently introduced Burlodge food delivery system.
Water consumption is down 1.4% compared to the previous year. The outsourcing of the non Resident Laundry Service has resulted in a reduction in water consumption during 2017-18.
Increasing CO2 emissions reflect the aging motor vehicle fleet at Castlemaine Health. The fleet is being progressively replaced which will result in reduced CO2 emissions over time.
24,500
25,000
25,500
26,000 26,500
27,000
27,500
28,000
2013/14 2014/15 2015/16 2016/17 2017/18
Th
ou
san
d M
J
Year
Natural Gas Consumption MJ ('000)/paNatural Gas consumption down 5.8% compared to the previous year. This result is attributed to a reduction in hot water attributable to laundry use.
Electricity consumption is down 0.70% compared to the previous year. Whilst efficiency gains have been achieved through continued LED lighting , airconditioning control and computer upgrades, these have been offset, to a certain extent, by increased power consumption of the recently introduced Burlodge food delivery system.
1,950
2,000
2,050
2,100
2,150
2,200
2013/14 2014/15 2015/16 2016/17 2017/18
Th
ou
san
d K
WH
Year
Electricity Consumption KWH ('000)/pa
Water consumption down 1.4% compared to the previous year.The outsourcing of the non Resident Laundry Service has resulted in a reduction in water consumption during 2017-18.
22,500
23,000
23,500
24,000
24,500
25,000
2013/14 2014/15 2015/16 2016/17 2017/18
KLi
tre
s
Year
Water Consumption kL/pa
CO2 Emmissions - Motor Vehicle FleetIncreasing CO2 emmissions reflect the aging
24,500
25,000
25,500
26,000 26,500
27,000
27,500
28,000
2013/14 2014/15 2015/16 2016/17 2017/18
Th
ou
san
d M
J
Year
Natural Gas Consumption MJ ('000)/paNatural Gas consumption down 5.8% compared to the previous year. This result is attributed to a reduction in hot water attributable to laundry use.
Electricity consumption is down 0.70% compared to the previous year. Whilst efficiency gains have been achieved through continued LED lighting , airconditioning control and computer upgrades, these have been offset, to a certain extent, by increased power consumption of the recently introduced Burlodge food delivery system.
1,950
2,000
2,050
2,100
2,150
2,200
2013/14 2014/15 2015/16 2016/17 2017/18
Th
ou
san
d K
WH
Year
Electricity Consumption KWH ('000)/pa
Water consumption down 1.4% compared to the previous year.The outsourcing of the non Resident Laundry Service has resulted in a reduction in water consumption during 2017-18.
22,500
23,000
23,500
24,000
24,500
25,000
2013/14 2014/15 2015/16 2016/17 2017/18
KLi
tre
s
Year
Water Consumption kL/pa
CO2 Emmissions - Motor Vehicle FleetIncreasing CO2 emmissions reflect the aging
24,500
25,000
25,500
26,000 26,500
27,000
27,500
28,000
2013/14 2014/15 2015/16 2016/17 2017/18
Th
ou
san
d M
J
Year
Natural Gas Consumption MJ ('000)/paNatural Gas consumption down 5.8% compared to the previous year. This result is attributed to a reduction in hot water attributable to laundry use.
Electricity consumption is down 0.70% compared to the previous year. Whilst efficiency gains have been achieved through continued LED lighting , airconditioning control and computer upgrades, these have been offset, to a certain extent, by increased power consumption of the recently introduced Burlodge food delivery system.
1,950
2,000
2,050
2,100
2,150
2,200
2013/14 2014/15 2015/16 2016/17 2017/18
Th
ou
san
d K
WH
Year
Electricity Consumption KWH ('000)/pa
Water consumption down 1.4% compared to the previous year.The outsourcing of the non Resident Laundry Service has resulted in a reduction in water consumption during 2017-18.
22,500
23,000
23,500
24,000
24,500
25,000
2013/14 2014/15 2015/16 2016/17 2017/18
KLi
tre
s
Year
Water Consumption kL/pa
CO2 Emmissions - Motor Vehicle FleetIncreasing CO2 emmissions reflect the aging
100
120
140
160
180
200
220
2013/14 2014/15 2015/16 2016/17 2017/18CO
2 E
mm
issi
on
s (t
on
ne
s)
Year
CO2 Emmissions - Motor Vehicle FleetIncreasing CO2 emmissions reflect the aging motor vehicle fleet at Castlemaine Health. The fleet is being progressively replaced which will result in reduced CO2 emmissions over time.
Natural Gas Consumption MJ (‘000)/pa
Electricity Consumption KWH (‘000)/pa
Water Consumption kL/pa
CO2 Emmissions Motor Vehicle Fleet
Business as usual ICT expenditure ($) Non-Business as usual ICT expenditure ($)
Total (a+b) Operational expenditure (a)
Capital expenditure (b)
Operational expenditure
Capital expenditure
2,023,502 1,053,061 970,441 0 0
Environmental performanceCastlemaine Health continues to implement strategies from our Sustainability and Environmental Plan 2016-21. These strategies focus on waste reduction and recycling, energy reduction and resource efficiency.
18
Corporate Services (continued)
perspective our food services have once again met the Food Safety standard requirements, as attested by our external auditors and council compliance officers.
In September 2017, our Café facility was outsourced to a private provider and aptly named the Quick Fix Café. It has undergone a culinary rebirth and has proven to be a resounding success. The Café currently trades seven days a week, offering additional services to our clientele. There are internal redesign plans afoot to modernise and enhance the dining experience in the Café for all.
Our laundry service has successfully transitioned to Gouge Linen Service. We have trialled new lightweight allergenic free blankets in our Operating Suite with much success, demonstrating the potential to roll them out across Castlemaine Health. Our internally provided Resident Laundry Service has also evolved over the last year. It now operates a quicker, more responsive process and delivers a more personalised service to our residents. Feedback to date has reflected a positive acceptance of these changes.
Health Information ServiceIn 2017-18 we have continued to provide clinical coding services to Inglewood, Heathcote, Boort and the East Wimmera group. As part of succession planning we are training an existing staff member in Clinical Coding and subsidised her Certificate IV in Clinical Classification. Participation in a project run by LMHRA has enabled us to be in a position to upload discharge summaries into the My Health Record by the end of 2018. Staff have continued to rise to the challenges presented by increased Operating Suite activity and data compliance demands.
19
ANNUAL REPORT
2017 18Statutory Compliance
Conflict of Interest: I, Ian Fisher, certify that Castlemaine Health has put in place appropriate internal controls and processes to ensure that it has complied with the requirements of hospital circular 07/2017 Compliance reporting in health portfolio entities (Revised) and has implemented a ‘Conflict of Interest’ policy consistent with the minimum accountabilities required by the VPSC. Declaration of private interest forms have been completed by all executive staff within Castlemaine Health and members of the Board, and all declared conflicts have been addressed and are being managed. Conflict of interest is a standard agenda item for declaration and documenting at each executive Board meeting.
Financial Management Compliance: I Ian Fisher, on behalf of the Responsible Body, certify that Castlemaine Health has complied with the applicable Standing Directions of the Minister for Finance under the Financial Management Act 1994 and Instructions.
Health Purchasing Victoria (HPV) Health Purchasing policies: I, Ian Fisher, certify that Castlemaine Health has put in place appropriate internal controls and processes to ensure that it has complied with all requirements set out in the HPV Health Purchasing Policies including mandatory HPV collective agreements as required by the Health Services Act 1988 (Vic) and has critically reviewed these controls and processes during the year.
Building Act 1993: All building works have been undertaken in accordance with the Department of Health and Human Services Guidelines and comply with the Building Act 1993 and the Building Code of Australia 1996.
Carers Recognition Act 2012: Castlemaine Health has taken all practical measures to comply with its obligations under the Act.
Data Integrity: I, Ian Fisher, certify that Castlemaine Health has put in place appropriate internal controls and processes to ensure that reported data accurately reflects actual performance. Castlemaine Health has critically reviewed these controls and processes during the year.
DataVic Access Policy: Consistent with the DataVic access policy issued by the Victorian Government in 2012, the information contained in all data tables in
this Annual Report will be available at http://www.data.vic.gov.au/ in machine readable format.
Freedom of Information Act 1982: All applications were processed in accordance with the provision of the Freedom of Information Act 1982, which provides a legally enforceable right of access of information held by Government agencies. Castlemaine Health provides a report on these requests to the Department of Justice. Freedom of Information requests can be submitted in writing to the Chief Executive Officer, Castlemaine Health, PO Box 50, Castlemaine 3450. Application forms are available at www.castlemainehealth.org.au, or by phoning 5471 1555. Application charges and fees apply. Eighteen requests were received under Freedom of Information in 2017-18. Of these requests, fifteen were valid. Requestors were Transport Accident Commission, lawyers, private individuals and one Member of Parliament. All were processed within the required timeframes without any exemptions. More information about Freedom of Information can be found at www.foi.vic.gov.au.
National Competition Policy: Castlemaine Health applies competitive neutral costing and pricing arrangements to significant business units within its operations. These arrangements are in line with Government policy and the model principles applicable to the health sector.
Protected Disclosure Act 2012: This Act enables people to make disclosures about improper conduct within the public sector without fear of reprisal. The Act aims to ensure openness and accountability by encouraging people to make disclosures and protecting them when they do. The procedures established by Castlemaine Health under Part 9 are available in the Protected Disclosure Policy. There were no disclosures notified to the IBAC under section 21(2) in 2017-18.
Safe Patient Care Act 2015: Castlemaine Health has nil matters to report in relation to its obligations under section 40 of the Safe Patient Care Act 2015.
Victorian Industry Participation Policy Act 2003: During the year there were no contracts completed requiring the application of VIPP.
Additional information available on request: The items listed below have
been retained by Castlemaine Health and are available to the relevant Ministers, Members of Parliament and the public on request (subject to freedom of information requirements, if applicable):
• declarations of pecuniary interests have been duly completed by all relevant officers
• details of shares held by senior officers as nominee or held beneficially
• details of publications produced by Castlemaine Health about itself, and how these can be obtained
• details of changes in prices, fees, charges, rates and levies charged by Castlemaine Health
• details of major external reviews carried out on Castlemaine Health
• details of major research and development activities undertaken by Castlemaine Health that are not otherwise covered either in the report of operations or in a document that contains the financial statements and report of operations
• details of overseas visits undertaken including a summary of the objectives and outcomes of each visit
• details of major promotional, public relations and marketing activities undertaken to develop community awareness of Castlemaine Health and its services
• details of assessments and measures undertaken to improve the occupational health and safety of employees
• a general statement on industrial relations within Castlemaine Health and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the report of operations
• a list of major committees sponsored by Castlemaine Health, the purposes of each committee and the extent to which those purposes have been achieved
• details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.
20
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Year in review 01
Catchment 02
Services 02
Governance and structure 03
Statement of Priorities Report 06
Nursing & Midwifery Care, Pharmacy & Staff Development 11
Community Programs 13
Corporate Services 15
Statutory Compliance 19
Disclosure Index Inside back cover
Acknowledgements and Feedback
We wish to thank everyone who contributed to this report – staff, members of the community, volunteers and clients. We value your comments and feedback, so please get in touch:
PO Box 50, Castlemaine VIC 3450P: 03 5471 1401E: [email protected]
Print: Mulqueen Creative & PrintDesign: Billington Prideaux PartnershipBank: Bendigo BankExternal Auditor’s agents: Richmond Sinnott and DelahuntyInternal auditor: AFS and Associates Pty Ltd
Castlemaine Health acknowledges the support of the Victorian Government
Contents
VisionExceptional care of every person, every time.
MissionA well run and trusted organisation that engages with the community to provide high quality health services.
ValuesIntegrity
We engage with others in the highest degree of dignity, equity, honesty and trust.
Care
We treat people with respect, are compassionate, thoughtful and responsive to their needs.
Unity
We work as a team and in partnership with our communities.
Excellence
We are committed to achieve our Vision.
Disclosure Index
The annual report of Castlemaine Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the department’s compliance with statutory disclosure requirements.
LEGISLATION REQUIREMENT PAGECharter and purpose
FRD 22H Manner of establishment and the relevant Ministers 04
FRD 22H Purpose, functions, powers and duties 04
FRD 22H Initiatives and key achievements 11-18
FRD 22H Nature and range of services provided 02
Management and structure
FRD 22H Organisational structure 03
Financial and other information
FRD 10A Disclosure index IBC
FRD 11A Disclosure of exgratia expenses Refer to AFS*
FRD 21C Responsible person and executive officer disclosures Refer to AFS*
FRD 22H Application and operation of Protected Disclosure 2012 19
FRD 22H Application and operation of Carers Recognition Act 2012 19
FRD 22H Application and operation of Freedom of Information Act 1982 19
FRD 22H Compliance with building and maintenance provisions of Building Act 1993 19
FRD 22H Details of consultancies over $10,000 10
FRD 22H Details of consultancies under $10,000 10
FRD 22H Employment and conduct principles 15
FRD 22H Information and Communication Technology Expenditure 17
FRD 22H Major changes or factors affecting performance Refer to AFS*
FRD 22H Occupational violence 16
FRD 22H Operational and budgetary objectives and performance against objectives Refer to AFS*
FRD 22H Summary of the entity’s environmental performance 17
FRD 22H Significant changes in financial position during the year Refer to AFS*
FRD 22H Statement on National Competition Policy 19
FRD 22H Subsequent events Refer to AFS*
FRD 22H Summary of the financial results for the year Refer to AFS*
FRD 22H Additional information available on request 19
FRD 22H Workforce Data disclosures including a statement on the application of employment and conduct principles 15
FRD 25C Victorian Industry Participation Policy disclosures 19
FRD 29B Workforce Data disclosures 15
FRD 103F Non-Financial Physical Assets Refer to AFS*
FRD 110A Cash flow Statements Refer to AFS*
FRD 112D Defined Benefit Superannuation Obligations Refer to AFS*
SD 5.2.3 Declaration in report of operations Refer to AFS*
SD 3.7.1 Risk management framework and processes Refer to AFS*
Other requirements under Standing Directions 5.2
SD 5.2.2 Declaration in financial statements Refer to AFS*
SD 5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements Refer to AFS*
SD 5.2.1(a) Compliance with Ministerial Directions Refer to AFS*
Legislation
Freedom of Information Act 1982 19
Protected Disclosure Act 2012 19
Carers Recognition Act 2012 19
Victorian Industry Participation Policy Act 2003 19
Building Act 1993 19
Financial Management Act 1994 19
Safe Patient Care Act 2015 19
* AFS – Attached Financial Statement. If the statement is not attached to this report, please call 03 5471 1401. + Inside back cover
Our services are delivered on the traditional lands of the Dja Dja Wurrung people.
Artist: Kerri Douglas
Our services are delivered on the traditional lands of the Dja Dja Wurrung people.
Artist: Kerri Douglas
FINANCE REPORT
Summary of financial resultsSignificant changes in financial position Operational and budgetary objectives and factors affecting performance
Financial sustainability performanceEvents subsequent to balance dateIndependent auditor’s report
Acknowledgements and Feedback
We wish to thank everyone who contributed to this report – staff, members of the community, volunteers and clients. We value your comments and feedback, so please get in touch:
PO Box 50, Castlemaine VIC 3450 P: 03 5471 1401 E: [email protected] www.castlemainehealth.org.au
Print: Mulqueen Creative & Print Design: Billington Prideaux Partnership Bank: Bendigo Bank External Auditor’s agents: Richmond Sinnott and Delahunty Internal auditor: AFS and Associates Pty Ltd
Castlemaine Health acknowledges the support of the Victorian Government
Contents
VisionExceptional care of every person, every time.
MissionA well run and trusted organisation that engages with the community to provide high quality health services.
ValuesIntegrity
We engage with others in the highest degree of dignity, equity, honesty and trust.
Care
We treat people with respect, are compassionate, thoughtful and responsive to their needs.
Unity
We work as a team and in partnership with our communities.
Excellence
We are committed to achieve our Vision.
Disclosure Index
The annual report of Castlemaine Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the department’s compliance with statutory disclosure requirements.
LEGISLATION REQUIREMENT PAGECharter and purpose
FRD 22H Manner of establishment and the relevant Ministers 04
FRD 22H Purpose, functions, powers and duties 04
FRD 22H Initiatives and key achievements 11-18
FRD 22H Nature and range of services provided 02
Management and structure
FRD 22H Organisational structure 03
Financial and other information
FRD 10A Disclosure index IBC
FRD 11A Disclosure of exgratia expenses Refer to AFS*
FRD 21C Responsible person and executive officer disclosures Refer to AFS*
FRD 22H Application and operation of Protected Disclosure 2012 19
FRD 22H Application and operation of Carers Recognition Act 2012 19
FRD 22H Application and operation of Freedom of Information Act 1982 19
FRD 22H Compliance with building and maintenance provisions of Building Act 1993 19
FRD 22H Details of consultancies over $10,000 10
FRD 22H Details of consultancies under $10,000 10
FRD 22H Employment and conduct principles 15
FRD 22H Information and Communication Technology Expenditure 17
FRD 22H Major changes or factors affecting performance Refer to AFS*
FRD 22H Occupational violence 16
FRD 22H Operational and budgetary objectives and performance against objectives Refer to AFS*
FRD 22H Summary of the entity’s environmental performance 17
FRD 22H Significant changes in financial position during the year Refer to AFS*
FRD 22H Statement on National Competition Policy 19
FRD 22H Subsequent events Refer to AFS*
FRD 22H Summary of the financial results for the year Refer to AFS*
FRD 22H Additional information available on request 19
FRD 22H Workforce Data disclosures including a statement on the application of employment and conduct principles 15
FRD 25C Victorian Industry Participation Policy disclosures 19
FRD 29B Workforce Data disclosures 15
FRD 103F Non-Financial Physical Assets Refer to AFS*
FRD 110A Cash flow Statements Refer to AFS*
FRD 112D Defined Benefit Superannuation Obligations Refer to AFS*
SD 5.2.3 Declaration in report of operations Refer to AFS*
SD 3.7.1 Risk management framework and processes Refer to AFS*
Other requirements under Standing Directions 5.2
SD 5.2.2 Declaration in financial statements Refer to AFS*
SD 5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements Refer to AFS*
SD 5.2.1(a) Compliance with Ministerial Directions Refer to AFS*
Legislation
Freedom of Information Act 1982 19
Protected Disclosure Act 2012 19
Carers Recognition Act 2012 19
Victorian Industry Participation Policy Act 2003 19
Building Act 1993 19
Financial Management Act 1994 19
Safe Patient Care Act 2015 19
* AFS – Attached Financial Statement. If the statement is not attached to this report, please call 03 5471 1401.+ Inside back cover
Report of Operations - Financial The information contained on this page does not form part of the audited financial results for the year ended 30 June 2018 but is based on information contained within the audited statements.
Summary of Financial Results
For the Financial Year ended 30 June 2018
2018 $000
2017 $000
2016 $000
2015 $000
2014 $000
Total Revenue 49,960 49,404 46,394 42,744 46,673 Total Expenses 51,073 49,749 44,815 44,600 45,701 Other Operating Flows included in the net result (356) 303 0 0 0
Net Result Before Capital & Specific Items* (410) 1,286 238 (477) (1,981) Net Result for the year (incl Capital & Specific Items) (1,469) (42) 1,579 (1,856) 972
Retained Surplus/Accumulated Deficit) (15,961) (14,492) (14,450) (16,039) (14,183)
Total Assets 72,986 72,279 66,573 63,201 60,054 Total Liabilities 34,681 32,505 27,223 25,409 20,210
Net Assets 38,305 39,774 39,350 37,792 39,844
Equity 38,305 39,774 39,350 37,792 39,844
* The Net Result before Capital & Specific Items is the result for which the hospital is monitored in its Statement of Priorities.
Significant Changes in Financial Position The Cash and Cash Equivalent/Investments balances held by Castlemaine Health increased during the year by $1.7m. This increase was as the result of an increase in Refundable Accommodation Deposits and is offset by a corresponding increase in Other Current Liabilities (Monies held in Trust).
Castlemaine Health is striving to achieve operating surpluses on an ongoing basis to ensure the organisation can generate the cash needed to meet operating requirements into the future.
Operational and Budgetary Objectives and Factors Affecting Performance
Like all Health Services, Castlemaine Health is required to negotiate a Statement of Priorities with the Department of Health & Human Services each year. This document is a key accountability agreement between Castlemaine Health and the Minister for Health. It recognises that resources are limited and that the allocation of these scarce resources needs to be prioritised. The Statement incorporates both system-wide priorities set by the Government and locally generated agency-specific priorities.
The Board aimed for a $0.250m surplus result before capital items and depreciation in the Statement of Priorities for the 2017/18 financial year. The financial result before capital items and depreciation for the 2017/18 year was a deficit of $0.410m. Castlemaine Health faced some significant challenges over the past year and continues to work with the Department of Health and Human Services to address these.
Both the organisation and the Department of Health & Human Services focus on the result before capital and depreciation, as depreciation is not a funded item. Funding for capital redevelopment and major equipment purchases are sourced from the
Government; such funding is allocated according to need and after consideration of a supporting submission.
Effective Financial Management
Statement of Priorities Measure Target 2017-18 actual
Finance
Operating result ($m) $0.250m $(0.410)m
Average number of days to paying trade creditors <60 days 59 days
Average number of days to receiving patient fee debtors <60 days 39 days
Public and Private WIES activity performance to target 100% 99.96%
Adjusted current asset ratio 0.70 0.83
Number of days available cash 14 days 3.3 days
Events Subsequent to Balance Date
There have been no events subsequent to balance date that will have a significant effect on the operations of the of the
health service in subsequent years.
Independent Auditor’s Report
To the Board of Castlemaine Health
Opinion I have audited the financial report of Castlemaine Health (the health service) which comprises the:
• balance sheet as at 30 June 2018
• comprehensive operating statement for the year then ended
• statement of changes in equity for the year then ended
• cash flow statement for the year then ended
• notes to the financial statements, including significant accounting policies
• board member's, accountable officer's and chief finance & accounting officer's declaration.
In my opinion the financial report presents fairly, in all material respects, the financial position of the
health service as at 30 June 2018 and their financial performance and cash flows for the year then
ended in accordance with the financial reporting requirements of Part 7 of the Financial Management
Act 1994 and applicable Australian Accounting Standards.
Basis for
Opinion
I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian
Auditing Standards. I further describe my responsibilities under that Act and those standards in the
Auditor’s Responsibilities for the Audit of the Financial Report section of my report.
My independence is established by the Constitution Act 1975. My staff and I are independent of the
health service in accordance with the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant
to my audit of the financial report in Victoria. My staff and I have also fulfilled our other ethical
responsibilities in accordance with the Code.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
opinion.
Board’s
responsibilities
for the financial
report
The Board of the health service is responsible for the preparation and fair presentation of the
financial report in accordance with Australian Accounting Standards and the Financial Management
Act 1994, and for such internal control as the Board determines is necessary to enable the
preparation and fair presentation of a financial report that is free from material misstatement,
whether due to fraud or error.
In preparing the financial report, the Board is responsible for assessing the health service’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless it is inappropriate to do so.
Other
Information
My opinion on the financial report does not cover the Other Information and accordingly, I do not
express any form of assurance conclusion on the Other Information. However, in connection with my
audit of the financial report, my responsibility is to read the Other Information and in doing so,
consider whether it is materially inconsistent with the financial report or the knowledge I obtained
during the audit, or otherwise appears to be materially misstated. If, based on the work I have
performed, I conclude there is a material misstatement of the Other Information, I am required to
report that fact. I have nothing to report in this regard.
Castlemaine Health Annual Report 2017/18
Note 2018 2017
$'000 $'000
Revenue from operating activities 2.1 48,017 47,746
Revenue from non-operating activities 2.1 446 362
Employee expenses 3.1 (36,883) (35,422)
Non salary labour costs 3.1 (2,970) (2,704)
Supplies and consumables 3.1 (4,063) (3,920)
Administration expenses 3.1 (2,996) (2,916)
Other expenses 3.1 (1,961) (1,860)
Net result before capital and specific items (410) 1,286
Capital purpose income 2.1 1,463 1,296
Depreciation 4.4 (2,089) (2,040)
Specific expenses - (289)
Assets provided free of charge 34 -
Finance costs (58) (28)
Expenditure for capital purpose 3.1 (53) (570)
Net result after capital and specific items (1,113) (345)
Other gains/(losses) from other economic flows
Revaluation of long service leave 3.1 (356) 303
NET RESULT FOR THE YEAR (1,469) (42)
Other comprehensive income
Items that will not be reclassified to net result
Changes in physical asset revaluation surplus 8.1 - 466
Total other comprehensive income - 466
Comprehensive result (1,469) 424
This Statement should be read in conjunction with the accompanying notes.
Castlemaine Health
Comprehensive Operating Statement
For the Year Ended 30 June 2018
Castlemaine Health Annual Report 2017/18
Note 2018 2017
$'000 $'000
Current assets
Cash and cash equivalents 6.2 6,542 11,247
Receivables 5.1 1,848 1,361
Investments and other financial assets 4.1 15,271 9,893
Inventories 332 275
Prepayments and Other assets 179 145
Total current assets 24,172 22,921
Non-current assets
Receivables 5.1 908 767
Property, plant & equipment 4.3 47,906 48,591
Total non-current assets 48,814 49,358
TOTAL ASSETS 72,986 72,279
Current liabilities
Payables 5.3 2,560 2,587
Borrowings 6.1 500 480
Provisions 3.3 8,142 7,604
Other current liabilities 5.2 21,055 19,389
Total current liabilities 32,257 30,060
Non-current liabilities
Borrowings 6.1 972 1,442
Provisions 3.3 1,452 1,003
Total non-current liabilities 2,424 2,445
TOTAL LIABILITIES 34,681 32,505
NET ASSETS38,305 39,774
EQUITY
Property, plant & equipment revaluation surplus 8.1a 33,064 33,064
Contributed capital 8.1c 21,202 21,202
Accumulated deficits 8.1d (15,961) (14,492)
TOTAL EQUITY38,305 39,774
This Statement should be read in conjunction with the accompanying notes.
Balance SheetAs at 30 June 2018
Castlemaine Health
Castlemaine Health Annual Report 2017/18
Castlemaine Health
Statement of Changes in Equity
For the Year Ended 2018
Property,
Plant &
Equipment
Revaluation
Surplus
Contributed
Capital
Accumulated
Deficits
Total
Note $'000 $'000 $'000 $'000
Balance at 1 July 2016 32,598 21,202 (14,450) 39,350
Net result for the year - - (42) (42)
Other comprehensive income for the year 8.1(a) 466 - - 466
Balance at 30 June 2017 33,064 21,202 (14,492) 39,774
Net result for the year - - (1,469) (1,469)
Balance at 30 June 2018 33,064 21,202 (15,961) 38,305
This Statement should be read in conjunction with the accompanying notes
Castlemaine Health Annual Report 2017/18
Note 2018 2017
$'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating grants from government 38,199 37,744
Capital grants from government 1,104 566
Patient and resident fees received 5,851 5,798
Donations and bequests received 300 215
GST received from/(paid to) ATO 2 135
Interest received 486 362
Other capital receipts 6 176
Other receipts 2,374 2,283
Total receipts 48,322 47,279
Employee expenses paid (36,425) (35,499)
Non salary labour costs (2,442) (2,410)
Payments for supplies & consumables (3,581) (3,933)
Other Capital Payments (36) (125)
Other payments (4,896) (3,399)
Total payments (47,380) (45,366)
NET CASH FLOW FROM OPERATING ACTIVITIES 8.2 942 1,913
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for non-financial assets (1,425) (2,793)
Proceeds from sale of non-financial assets 12 511
NET CASH FLOW USED IN INVESTING ACTIVITIES (1,413) (2,282)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings (480) (400)
NET CASH FLOW USED IN FINANCING ACTIVITIES (480) (400)
NET DECREASE IN CASH AND CASH EQUIVALENTS HELD (951) (769)
Cash and cash equivalents at beginning of financial year 1,296 2,065
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 6.2 345 1,296
This Statement should be read in conjunction with the accompanying notes
Cash Flow Statement For the Year Ended 2018
Castlemaine Health
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Basis of presentation
Note 1: Summary of significant accounting policies
(a) Statement of compliance
(b) Reporting entity
The financial statements include all the controlled activities of Castlemaine Health.
Its principal address is:142 Cornish StCastlemaineVictoria 3450
Objectives and funding
Castlemaine Health Service is predominantly funded by accrual based grant funding for the provision of outputs.
Castlemaine Health Service's overall objective is to provide exceptional care of every person, every time by ensuring a well run and
trusted organisation that engages with the community to provide high quality health services.
These financial statements are presented in Australian dollars and the historical cost convention is used unless a different
measurement basis is specifically disclosed in the note associated with the item measured on a different basis.
The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity,
income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
Consistent with the requirements of AASB 1004 Contributions (that is contributed capital and its repayment) are treated as equity
transactions and, therefore, do not form part of the income and expenses of the hospital.
Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other
transfers that are in the nature of contributions to or distributions by owners have also been designated as contributions by
owners.
Judgements, estimates and assumptions are required to be made about financial information being presented. The significant
judgements made in the preparation of these financial statements are disclosed in the notes where amounts affected by those
judgements are disclosed. 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 future periods that are
affected by the revision. There are no judgements and assumptions made by management in applying the application of AAS's that
have significant effects on the financial statements and estimates.
These annual financial statements represent the audited general purpose financial statements for Castlemaine Health Service for
the period ending 30 June 2018. The report provides users with information about the Health Services’ stewardship of resources
entrusted to it.
These financial statements are general purpose financial statements which have been prepared in accordance with the Financial
Management Act 1994 and applicable AASBs, 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.
Castlemaine Health Service is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-
profit” Health Services under the AASBs.
A description of the nature of Castlemaine Health Service’s operations and its principal activities is included in the report of
operations, which does not form part of these financial statements.
The annual financial statements were authorised for issue by the Board of Castlemaine Health on
31st August 2018.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 1: Summary of significant accounting policies (continued)
(c) Basis of accounting preparation and measurement
Goods and Services Tax (GST)
(d) Principles of consolidation
Intersegment Transactions
(e) Jointly Controlled Operation
• In respect of any interest in joint operations, Castlemaine Health 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.
Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
Castlemaine Health Service is a Member of the Loddon Mallee Rural Health Alliance (the Alliance) and retains joint control over the
arrangement, which it has classified as a joint operation (refer to Note 4.2 Jointly Controlled Operations and Assets).
Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not
readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. The estimates
and associated assumptions are based on professional judgements derived from historical experience and various other factors
that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Transactions between segments within Castlemaine Health have been eliminated to reflect the extent of Castlemaine Health's
operations as a group.
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from
the Australian Taxation Office (ATO). In this case the GST payable is recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable
from, or payable to, the ATO is included with other receivables or payables in the Balance Sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are
recoverable from, or payable to the ATO, are presented as operating cash flow.
Commitments and contingent assets and liabilites are presented on a gross basis.
• superannuation expense (refer to Note 3.4);
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 AASBs that have significant
effects on the financial statements and estimates relate to:
• employee benefit provisions based on likely tenure of existing staff, patterns of leave
claims, future salary movements and future discount rates (refer to Note 3.3)
• the fair value of land, buildings, plant and equipment, (refer to Note 4.3);
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 have been applied in preparing the financial statements for the year ended 30 June 2018, and the
comparative information presented in these financial statements for the year ended 30 June 2017.
These financial statements are presented in Australian dollars, the functional and presentation currency of the Health Service.
All amounts shown in the financial statements have been rounded to the nearest thousand dollar, unless otherwise stated. Minor
discrpancies in tables between totals and sum of components are due to rounding.
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 going concern basis was used to prepare these financial statements (Refer to note 8.8: Economic dependency).
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note: 2 Funding delivery of our services
Castlemaine Health’s overall objective is to deliver programs and services that support and enhance the wellbeing of all Victorians.
Note 2.1: Analysis of Revenue by Source
Other Total
2018 2018 2018 2018 2018 2018
$'000 $'000 $'000 $'000 $'000 $'000
Government Grant 18,889 5,060 12,829 1,479 6 38,263
Indirect contributions by Department of Health and
Human Services168 31 37 8 2 246
Patient & Resident Fees 1,235 264 4,153 174 25 5,851
Commercial Activities - - - - 809 809
Other Revenue from Operating Activities 1,959 417 390 82 - 2,848
Total Revenue from Operating Activities 22,251 5,772 17,409 1,743 842 48,017
Interest - - - - 446 446
Total Revenue from Non-Operating Activities - - - - 446 446
Government Grants - Capital - - - - 1,104 1,104
Interest - Capital - - 39 - - 39
Assets Received free of Charge 34 34
Other Capital Purpose income - - - - 320 320
Total Capital Purpose Income - - 39 - 1,458 1,497
Total Revenue 22,251 5,772 17,448 1,743 2,746 49,960
Other Total
2017 2017 2017 2017 2017 2017
$'000 $'000 $'000 $'000 $'000 $'000
Government Grant 19,303 4,346 12,771 1,658 288 38,366
Indirect contributions by Department of Health and
Human Services 94 14 37 6 - 151
Patient & Resident Fees 1,246 31 4,265 252 4 5,798
Commercial Activities - - - - 1,201 1,201
Other Revenue from Operating Activities 1,170 307 313 122 318 2,230
Total Revenue from Operating Activities 21,813 4,698 17,386 2,038 1,811 47,746
Interest - - 362 - - 362
Total Revenue from Non-Operating Activities - - 362 - - 362
Government Grants - Capital - - - - 566 566
Capital Interest - - 77 - - 77
Other Capital Purpose income - - - - 653 653
Total Capital Purpose Income - - 77 - 1,219 1,296
Total Revenue 21,813 4,698 17,825 2,038 3,030 49,404
To enable the hospital to fulfil its objective it receives income based on parliamentary appropriations. The hospital also receives income from the supply
of services.
Department of Health and Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in
determining the operating result for the year by recording them as revenue and expenses.
Aged Care
Admitted
Patients Non-Admitted RAC
Admitted
Patients Non-Admitted RAC Aged Care
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 2.1: Analysis of Revenue by Source (continued)
Revenue Recognition
Indirect Contributions from the Department of Health and Human Services
Patient Fees and Resident Fees
Private Practice Fees
Revenue from commercial activities
Donations and Other Bequests
Interest Revenue
Other income
Category groups
• Other Services not reported elsewhere - (Other) comprises services not separately classified above, includes: Health and Community Initiatives.
• 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.
• Admitted Patient Services (Admitted Patients) comprises all acute and subacute admitted patient services, where services are delivered in public
hospitals.
• Non Admitted Services comprises acute and subacute non admitted services, where services are delivered in public hospital clinics and provide
models of integrated community care, which significantly reduces the demand for hospital beds and supports the transition from hospital to home in a
safe and timely manner.
• 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.
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 is recognised on a time proportionate basis that takes in account the effective yield of the financial asset, which allocates interest over
the relevant period.
Other income includes non-property rental, dividends, forgiveness of liabilities, and bad debt reversals.
Castlemaine Health has used the following category groups for reporting purposes for the current and previous financial years.
• Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the
Metropolitan Health and Aged Care Services Division Hospital Circular 04/2017.
• Insurance is recognised as revenue following advice from the Department of Health and Human Services.
Patient fees and resident fees are recognised as revenue on an accrual basis.
Private practice fees are recognised as revenue on an accrual basis.
Revenue from commercial activities such as meals on wheels is recognised as revenue on an accrual basis.
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
Castlemaine Health 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.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 3.1: Analysis of Expenses by Source
Admitted
Patients Non-Admitted RAC Aged Care Other Total
2018 2018 2018 2018 2018 2018
$'000 $'000 $'000 $'000 $'000 $'000
Employee Expenses 16,144 5,482 13,002 1,858 397 36,883
Non Salary Labour Costs 2,688 23 240 16 3 2,970
Supplies & Consumables 1,273 (79) 2,914 (133) 88 4,063
Administration Expenses 1,510 635 593 195 63 2,996
Other Expenses 1,075 218 456 64 148 1,961
Total Expenditure from Operating Activities 22,690 6,279 17,205 2,000 699 48,873
Expenditure for Capital Purposes - - - - 53 53
Depreciation (refer note 4.4) - - - - 2,089 2,089
Other Gain/(losses) from other economic flows - - - - 356 356
Finance Costs - - 28 - 30 58
Total other expenses - - 28 - 2,528 2,556
Total Expenses 22,690 6,279 17,233 2,000 3,227 51,429
Admitted
Patients Non-Admitted RAC Aged Care Other Total
2017 2017 2017 2017 2017 2017
$'000 $'000 $'000 $'000 $'000 $'000
Employee Expenses 14,267 2,776 15,146 1,780 1,453 35,422
Non Salary Labour Costs 2,473 32 197 2 - 2,704
Supplies & Consumables 1,284 849 1,215 102 470 3,920
Administration Expenses 1,278 230 497 256 655 2,916
Other Expenses 883 64 825 26 62 1,860
Total Expenditure from Operating Activities 20,185 3,951 17,880 2,166 2,640 46,822
Expenditure for Capital Purposes - - - - 570 570
Specific Expenses - - - - 289 289
Depreciation (refer note 4.4) - - - - 2,040 2,040
Other Gain/(losses) from other economic flows - - - - (303) (303)
Finance Costs - - - - 28 28
Total other expenses - - - - 2,624 2,624
Total Expenses 20,185 3,951 17,880 2,166 5,264 49,446
Note 3: The cost of delivering our services
This section provides an account of the expenses incurred by the hospital in delivering services and outputs. In Section 2, the funds that enable the
provision of services were disclosed and in this note the cost associated with provision of services are recorded.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 3.1: Analysis of Expenses by Source (continued)
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Employee Expenses
Employee expenses include:
• wages and salaries;
• fringe benefits tax;
• leave entitlements;
• termination payments;
• workcover premiums; and
Grants and other transfers
Other operating expenses
Share of net profits/ (losses) of associates and jointly controlled entities, excluding dividends
Net gain/ (loss) on non-financial assets
Net gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
• Revaluation gains/ (losses) of non-financial physical assets (Refer to Note 4.3 Property plant and equipment.)
• Net gain/ (loss) on disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal.
Other gains/ (losses) from other economic flows
Other gains/ (losses) include:
• the revaluation of the present value of the long service leave liability due to changes in the bond rate
movements, inflation rate movements and the impact of changes in probability factors; and
• transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition
or reclassification.
De-recognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
2018 2017 2018 2017
$'000 $'000 $'000 $'000
Commercial Activities
Meals on Wheels 94 147 100 117
Laundry 390 708 376 653
Cafeteria 28 311 36 214
Properties/Health Club 176 248 270 335
TOTAL 688 1,414 782 1,319
• superannuation expenses
Grants and other transfers to third parties (other than contribution to owners) are recognised as an expense in the reporting
period in which they are paid or payable. They include transactions such as: grants, subsidies and personal benefit payments
made in cash to individuals.
Other operating 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.
Note 3.2: Analysis of Expense and Revenue by Internally Managed and Restricted Specific Purpose Funds for
Services Supported by Hospital and Community Initiatives
Expense Revenue
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.
Refer to Note 1 (d) Principles of consolidation.
Castlemaine Health
Notes to the Financial Statements
Note 3.3: Employee benefits in the balance sheet 30 June 2018
2018 2017
$'000 $'000
Current Provisions
Employee Benefits (i)
Annual leave
- Unconditional and expected to be settled wholly within 12 months (ii) 2,380 2,288
- Unconditional and expected to be settled wholly after 12 months (iii) 406 383
Long service leave
- Unconditional and expected to be settled wholly within 12 months (ii) 584 496
- Unconditional and expected to be settled wholly after 12 months (iii) 2,942 2,858
Accrued Days Off
- Unconditional and expected to be settled within 12 months (ii) 60 70
Accrued Salaries and Wages
- Unconditional and expected to be settled within 12 months (ii) 969 799
7,341 6,894
Provisions related to Employee Benefit On-Costs
- Unconditional and expected to be settled within 12 months (ii) 368 328
- Unconditional and expected to be settled after 12 months (iii) 433 382
801 710
Total Current Provisions 8,142 7,604
Non-Current Provisions
Long Service Leave 1,284 897
Long Service Leave related to employee Benefit On-Costs 168 106
Total Non-Current Provisions 1,452 1,003
Total Provisions 9,594 8,607
Notes:
(ii) The amounts disclosed are nominal amounts.
(iii) The amounts disclosed are discounted to present values.
(a) Employee Benefits and Related On-Costs
2018 2017
$'000 $'000
Current Employee Benefits and related on-costs
Unconditional LSL Entitlement 3,987 3,751
Annual Leave Entitlements 3,119 2,976
Accrued Wages and Salaries 969 799
Accrued Days Off 67 78
Non-Current Employee Benefits and related on-costs
Conditional Long Service Leave Entitlements (iii) 1,452 1,003
Total Employee Benefits 9,594 8,607
(b) Movement in Provisions
2018 2017
$'000 $'000
Movement in Long Service Leave:
Balance at start of year 4,754 4,907
Provision made during the year
- Revaluations 356 (303)
- Expense recognising Employee Service 960 803
Settlement made during the year (630) (653)
Balance at end of year 5,440 4,754
(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees. On-costs such as worker's
compensation insurance are not employee benefits and are reflected as a separate provision.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 3.3: Employee benefits in the balance sheet (continued)
Employee Benefit Recognition
Provisions
Employee benefits
Wages and salaries, annual leave, sick leave and accrued days off
Long service leave (LSL)
Termination benefits
On-costs related to employee expense
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.
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.
Liabilities for wages and salaries, including non-monetary benefits, annual leave, and accumulating sick leave are all recognised in the provision for
employee benefits as 'current liabilities', because the health service does not have an unconditional right to defer settlements of these liabilities.
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to
the reporting date as an expense during the period the services are delivered.
Conditional LSL is disclosed as a non-current liability. 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 estimations e.g. bond rate movements, inflation rate
movements and changes in probability factors which are then recognised as other economic flows.
• Present value - where the entity does not expect to settle a component of this current liability within 12 months.
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.
Provision for on-costs, such as workers compensation and superannuation are recognised together with provisions for employee benefits.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:
• Undiscounted value - if the 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.
The liability for LSL is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does not expect to settle
the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take
leave within 12 months. An unconditional right arises after a qualifying period.
The components of this current LSL liability are measured at:
• Undiscounted value - if the health service expects to wholly settle within 12 months; and
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 3.4: Superannuation
2018 2017 2018 2017
$'000 $'000 $'000 $'000
Defined benefit plans:(i)
First State Super 60 65 4 4
Defined contribution plans:
First State Super 1,944 2,001 118 106
Hesta 759 739 45 39
Other 258 130 23 5
Total 3,021 2,935 190 154
Defined contribution superannuation plans
Defined benefit superannuation plans
However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive
operating statement of the Health Service.
The name, details and amounts expense in relation to the major employee superannuation funds and contributions made by the Health Service are
detailed in the table above.
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.
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.
Paid Contribution for the
Year
Contribution Outstanding at
Year End
(i) The bases for determining the level of contributions is determined by the various actuaries of the defined benefit superannuation plans.
Employees of the Health Service are entitled to receive superannuation benefits and the Health Services 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 & Finance discloses the State’s defined benefits liabilities in its disclosure for administered items.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4: Key Assets to support service delivery
Note 4.1: Investments and Other Financial Assets
2018 2017 2018 2017 2018 2017
$'000 $'000 $'000 $'000 $'000 $'000
CURRENT
Loans and receivables
Term Deposits
Aust. Dollar Term Deposits > 3 months 13,214 7,859 1,726 1,720 14,940 9,579
Loddon Mallee Rural Health Alliance - Investments 331 314 - - 331 314 TOTAL INVESTMENTS 13,545 8,173 1,726 1,720 15,271 9,893
Represented by:
Loddon Mallee Rural Health Alliance Investments 331 314 - - 331 314
Monies Held in Trust
- Accommodation Bonds (Refundable Entrance Fees) 13,214 7,859 - - 13,214 7,859
- Malcolm Archer Bequest - - 1,726 1,720 1,726 1,720 TOTAL 13,545 8,173 1,726 1,720 15,271 9,893
(a) Ageing analysis of investments and other financial assets
Please refer to note 7.1 (c) for the ageing analysis of investments and other financial assets
(b) Nature and extent of risk arising from investments and other financial assets
Please refer to note 7.1 (c) for the nature and extent of credit risk arising from investments and other financial assets
Investment Recognition
Castlemaine Health Service assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment.
Derecognition of financial assets
• Castlemaine Health 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
Hospital investments must be in accordance in Standing Direction 3.7.2 – Treasury and Investment Risk Management. Investments are recognised
and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment
within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.
Castlemaine Health classifies its other financial assets between current and non-current assets based on the purpose for which the assets were
acquired. Management determines the classification of its other financial assets at initial recognition.
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
• Castlemaine Health 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
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where Castlemaine Health 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.
The hospital controls infrastructure and other investments that are utilised in fulfilling its objectives and conducting its activities. They represent
the key resources that have been entrusted to the hospital to be utilised for delivery of those outputs.
Operating Fund Total
(i) Term deposits under 'Investments and other financial assets' class include only term deposits with maturity greater than 90 days
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.
Capital Fund
Castlemaine HealthNotes to the Financial Statements
30 June 2018
Note 4.1: Investments and Other Financial Assets (continued)
Impairment of financial assets
Doubtful debts
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 2018 for its portfolio of financial assets, the Health Services and its controlled
entities used the market value of investments held provided by the portfolio managers.
The above valuation process was used to quantify the level of impairment (if any) on the portfolio of financial assets as at year end.
Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts considered as written off by mutual consent are
classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful debts are classified as other
economic flows included in net result .
At the end of each reporting period, the Health Service assesses if there is objective evidence that a financial asset or group of financial assets are
impaired. All financial instrument, except those measured at fair value through profit or loss, are subject to annual review for impairment.
Castlemaine Health
Notes to the Financial Statements
Note 4.2: Jointly controlled operations and assets 30 June 2018
2018 2017
Name of Entity % %
Loddon Mallee Rural Health Alliance 8.37% 7.92%
Castlemaine Health's interest in assets employed in the above jointly controlled operations and assets is detailed below.
The Amounts are included in the financial statements under their respective categories.
2018 2017
$'000 $'000
Current Assets
Cash and cash equivalents 82 141
Investments 331 314
Receivables 35 25
Inventory 8 3
Other current assets 60 51
Total Current Assets 516 534
Non Current Assets
Property, Plant and Equipment 47 12
Total Non Current Assets 47 12
Total Assets 563 546
Current Liabilities
Payables 128 100
Total Current Liabilities 128 100
Total Liabilities 128 100
Share of Joint Venture's Net Assets 435 446
2018 2017
Revenues $'000 $'000
Operating Activities 623 605
Non-Operating Activities - 1
Total Revenue 623 606
Expenses
Information Technology and Administration Expenses 635 546
Depreciation 5 10
Non-Operating Expenses 20 14
Total Expenses 660 570
Net Result (37) 36
Movements in carrying amount of interests in the Joint Venture
2018 2017
$'000 $'000
Carrying amount at the beginning of the year 446 410
Share of the Joint Operation's net result (37) 36
Change in Membership 26 -
435 446
Contingent Liabilities and Capital Commitments
There are no contingent liabilities or capital commitments arising from the interest in joint operations.
Ownership Interest
Castlemaine Health's interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.3: Property, plant & equipment
(a) Gross carrying amount and accumulated depreciation
2018 2017
$'000 $'000
Land
Land at Fair Value 3,593 3,593
Total Land 3,593 3,593
Buildings
Buildings Under Construction at cost 50 953
Buildings at Fair Value 45,197 43,981
Less Acc'd Depreciation (5,095) (3,791)
Total Buildings 40,152 41,143
Plant and Equipment
Plant and Equipment at Fair Value 9,728 8,954
Less Acc'd Depreciation (6,059) (5,648)
LMRHA Joint Operation Plant and Equipment 47 12
Total Plant and Equipment 3,716 3,318
Motor Vehicles
Motor Vehicle at Fair Value 1,045 1,054
Less Acc'd Depreciation (600) (517)
Total Motor Vehicles 445 537
TOTAL 47,906 48,591
(b) Reconciliations of the carrying amounts of each class of asset
Land Buildings Plant & Motor Assets Under Total
Equipment Vehicles Construction
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 July 2016 3,127 40,632 3,286 401 10 47,456
Additions - 832 714 310 943 2,799
Disposals - (3) (4) (78) - (85)
Managerial revaluation 466 - - - - 466
LMRHA Joint Operation Plant and Equipment (5) (5)
Depreciation (note 4.4) - (1,271) (673) (96) - (2,040)
Balance at 1 July 2017 3,593 40,190 3,318 537 953 48,591
Additions - 147 601 20 654 1,422
Disposals - - (15) (9) - (24)
Assets Provided free of charge (34) (34)
Net Transfer Between Classes - 1,069 488 - (1,557) -
LMRHA Joint Operation Plant and Equipment - - 40 - - 40
Depreciation (note 4.4) - (1,304) (682) (103) - (2,089) Balance at 30 June 2018 3,593 40,102 3,716 445 50 47,906
Land and buildings carried at valuation
The Valuer-General Victoria undertook to re-value all of Castlemaine Health Services's owned land and buildings to determine their
fair value. 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. The effective date of the valuation is 30 June 2014.
In compliance with FRD 103F, in the year ended 30 June 2018, Castlemaine Health Services's management conducted an annual
assessment of the fair value of land and buildings. To facilitate this, management obtained from the Department of Treasury and
Finance the Valuer General Victoria indices for the financial year ended 30 June 2018.
The fair value of the land had been adjusted by a managerial revaluation in 2017. The latest indices did not require a managerial
revaluation in 2018.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.3: Property, plant & equipment (continued)
(c) Fair value measurement hierarchy for assets
Level 1 (i) Level 2 (i) Level 3 (i)
Land at fair value
Specialised land 3,593 - - 3,593
Total of land at fair value 3,593 - - 3,593
Buildings at fair value
Specialised buildings 40,102 - - 40,102
Total of building at fair value 40,102 - - 40,102
Plant and equipment at fair value
Plant equipment and vehicles at fair value
- Vehicles (ii) 445 - - 445
- Plant and equipment 3,716 - - 3,716
Total of plant, equipment and vehicles at fair value 4,161 - - 4,161
Assets under construction at fair value
Work in progress buildings 50 - - 50
47,906 - - 47,906
Carrying amount as
at 30 June 2017 Level 1 (i) Level 2 (i) Level 3 (i)
Land at fair value
Specialised land 3,593 - - 3,593
Total of land at fair value 3,593 - - 3,593
Buildings at fair value
Specialised buildings 40,190 - - 40,190
Total of building at fair value 40,190 - - 40,190
Plant and equipment at fair value
Plant equipment and vehicles at fair value
- Vehicles (ii) 537 - - 537
- Plant and equipment 3,318 - - 3,318
Total of plant, equipment and vehicles at fair value 3,855 - - 3,855
Assets under construction at fair value
Work in progress buildings 953 - - 953
48,591 - - 48,591
Note
(i) Classified in accordance with the fair value hierarchy.
Fair value measurement at end of reporting period
using:
Carrying amount as
at 30 June 2018
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.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.3: Property, plant & equipment (continued)
(d) Reconciliation of Level 3 fair value
Assets under
30 June 2018 construction
$'000 $'000 $'000 $'000 $'000 $'000
Opening Balance 3,593 40,190 3,318 537 953 48,591
Additions/(Disposals) - 147 626 11 654 1,438
Transfers between Classes - 1,069 488 - (1,557) -
Assets Provided free of charge - - (34) - - (34)
Gains or losses recognised in net result
- Depreciation - (1,304) (682) (103) - (2,089)
Closing Balance 3,593 40,102 3,716 445 50 47,906
Assets under
30 June 2017 construction
$'000 $'000 $'000 $'000 $'000 $'000
Opening Balance 1,286 40,045 3,286 401 10 45,028
Additions/(Disposals) 1,841 286 705 232 943 4,007
Transfers in Level 3 - 1,130 - - - 1,130
Items recognised in Other Comprehensive Income
-Revaluation 466 - - - - 466
Gains or losses recognised in net result
- Depreciation - (1,271) (673) (96) - (2,040)
Closing Balance 3,593 40,190 3,318 537 953 48,591
i Classified in accordance with the fair value hierarchy, refer Note 4.2(e).
Land Buildings
Plant and
equipment
Motor
Vehicles Total
Land Buildings
Plant and
equipment
Motor
Vehicles Total
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.3: Property, plant & equipment (continued)
(e) Property, Plant and Equipment (Fair value determination)
Asset Class Expected fair value level
Specialised land Level 3
Specialised buildings Level 3
Plant and equipment at fair value Level 3
Vehicles Level 3
There were no changes in valuation techniques throughout the period to 30 June 2018.
Initial Recognition
Subsequent Measurement
All property, plant and equipment 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 (Refer to
4.3 (c)):
• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets.
• 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, the Health Service has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, the Health Service determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The estimates and underlying assumptions are reviewed on an ongoing basis.
Land and buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and accumulated
impairment loss.
Consistent with AASB 13 Fair Value Measurement, Castlemaine Health determines the policies and procedures for recurring property,
plant and equipment fair value measurements, in accordance with the requirements of AASB 13 and the relevant FRDs.
All property, plant and equipment for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy.
For the purpose of fair value disclosures, the Health Services has determined classes of assets on the basis of the nature, characteristics
and risks of the asset and the level of the fair value hierarchy as explained above.
In addition, the Health Services determines whether transfers have occurred between levels in the hierarchy by reassessing 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.
Items of property, plant and equipment 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.
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.
Depreciated replacement
cost
Cost per unit
Useful life of plant and
equipment
Cost per unit
Useful life of vehicles
Depreciated replacement
cost
(a) CSO adjustment of 20% was applied to reduce the market approach value for Castlemaine
Health's specialised land.
Likely Valuation technique Significant inputs
Market approach
Community Service
Obligation (CSO)
adjustments (a)
Depreciated replacement
cost
Direct cost per square
metre
Useful life of specialised
buildings
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.3: Property, plant & equipment (continued)
(e) Fair value determination
Fair value measurement
Valuation hierarchy
Identifying unobservable inputs (level 3) 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.
In June 2017 a managerial valuation was carried out in accordance with FRD 103F to revalue the land to its fair value. No revaluation was
required in 2018.
Castlemaine Health develops unobservable inputs using the best information available in the circumstances, which might include the
Health Service’s own data. In developing unobservable inputs, a Health Service may begin with its own data, but it shall adjust this data if
reasonably available information indicates that other market participants would use different data or there is something particular to the
Health Service that is not available to other market participants. A Health Service need not undertake exhaustive efforts to obtain
information about other market participant assumptions. However, a Health Service shall take into account all information about market
participant assumptions that is reasonably available. Unobservable inputs developed in the manner described above are considered
market participant assumptions and meet the object of a fair value measurement.
Specialised land and specialised buildings
The market approach is used for specialised land although it 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 Castlemaine Health Service, 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.
Castlemaine Health uses valuation techniques that are appropriate for the circumstances and where there is sufficient data available to
measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy.
Level 3 fair value inputs are unobservable valuation inputs for an asset or liability. These inputs require significant judgement and
assumptions in deriving fair value for both financial and non-financial assets.
Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing
for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value
measurement objective remains the same, i.e., an exit price at the measurement date from the perspective of a market participant that
holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when
pricing the asset or liability, including assumptions about risk.
Assumptions about risk include the inherent risk in a particular valuation technique used to measure fair value (such as a pricing risk
model) and the risk inherent in the inputs to the valuation technique. A measurement that does not include an adjustment for risk would
not represent a fair value measurement if market participants would include one when pricing the asset or liability i.e., it might be
necessary to include a risk adjustment when there is significant measurement uncertainty. For example, when there has been a significant
decrease in the volume or level of activity when compared with normal market activity for the asset or liability or similar assets or
liabilities, and the Health Service has determined that the transaction price or quoted price does not represent fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.3: Property, plant & equipment (continued)
(e) Fair value determination
Vehicles
Plant and equipment
Revaluations of non-current physical assets
Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within
that class but are not offset in respect of assets in different classes.
Revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset.
In accordance with FRD 103F, Castlemaine Health Service's non-current physical assets were assessed to determine whether revaluation of
the non-current physical assets was required.
For all assets measured at fair value, the current use is considered the highest and best use.
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.
Castlemaine Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of
acquisition, use and disposal in the market is managed by Castlemaine 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
(depreciation cost).
Plant and equipment is held at carrying amount (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 amount.
There were no changes in valuation techniques throughout the period to 30 June 2018.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 4.4: Depreciation
2018 2017
$'000 $'000
Depreciation
Buildings 1,304 1,271
Plant & Equipment 677 663
Motor Vehicles 103 96
LMRHA Joint Operation Depreciation 5 10
Total Depreciation 2,089 2,040
Buildings
- Structure Shell Building Fabric
- Site Engineering Services and Central Plant
- Fit Out
- Trunk Reticulated Building Systems
Plant & Equipment
Medical Equipment
Computers and Communication
Furniture and Fitting
Motor Vehicles
4 to 10 years
6 to 10 years
3 to 5 years
All 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.
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 $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or
valuation over their estimated useful lives.
The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based.
20172018
As part of the building valuation, building values were separated into components and each component assessed for its useful life which is
represented above.
8 years
45 to 80 years
30 to 40 years
20 to 25 years
20 to 25 years
4 to 10 years
6 to 10 years
3 to 5 years
10 years10 years
8 years
45 to 80 years
30 to 40 years
20 to 25 years
20 to 25 years
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 5: Other Assets and Liabilities
This section sets out those assets and liabilities that arose from the Castlemaine Health's operations.
Note 5.1: Receivables
2018 2017
$'000 $'000
CURRENT
Contractual
Trade Debtors 467 301
Department of Health and Human Services - Grant 51 -
Patient Fees 595 663
Accrued Investment Income 122 92
Accrued Revenue 503 228
Loddon Mallee Rural Health Alliance - Receivables 35 15
Less Allowance for Doubtful Debts
- Patient Fees (73) (68)
1,700 1,231
Statutory
GST Receivable 134 120
Loddon Mallee Rural Health Alliance - GST Receivable 14 10
148 130
TOTAL CURRENT RECEIVABLES 1,848 1,361
NON CURRENT
Statutory
Long Service Leave - Department of Health and Human Services 908 767
TOTAL NON-CURRENT RECEIVABLES 908 767
TOTAL RECEIVABLES 2,756 2,128
(a) Movement in the Allowance for doubtful debts
2018 2017
$'000 $'000
Balance at beginning of year (68) (80)
Increase/(decrease) in allowance recognised in net result (5) 12
Balance at end of year (73) (68)
(b) Ageing analysis of receivables
Please refer to note 7.1(c) for the ageing analysis of contractual receivables.
(c) Nature and extent of risk arising from receivables
Please refer to note 7.1(c) for the nature and extent of credit risk arising from contractual receivables.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 5.1: Receivables (continued)Receivables consist of:
Note 5.2: Other Liabilities
2018 2017
$'000 $'000
CURRENT
Monies Held in Trust
- Patient Monies Held in Trust 404 458
- Accommodation Bonds (Refundable Entrance Fees) 18,925 17,211
- Malcolm Archer Bequest 1,726 1,720
Total Current 21,055 19,389
Total Monies Held in Trust
Represented by the following assets:
Cash and Cash Equivalents (refer to Note 6.2) 6,115 9,810
Investment and other Financial Assets (refer to Note 4.1) 14,940 9,579 TOTAL 21,055 19,389
The Malcolm Archer Bequest is to be held in perpetuity as required by the conditions of the Bequest.
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.
• contractual receivables, which includes mainly debtors in relation to goods and services and accrued investment income; and
• statutory receivables, which includes predominately 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.
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 .
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 5.3: Payables
2018 2017
$'000 $'000
CURRENT
Contractual
Trade Creditors 1,202 1,155
Loddon Mallee Rural Health Alliance - Creditors 111 88
Accrued Expenses 570 741
Loddon Mallee Rural Health Alliance - Accrued Expenses 18 12
1,901 1,996
Statutory
GST Payable 36 24
FBT Payable 38 19
PAYG Payable 283 232
Department of Health and Human Services 302 316
659 591
TOTAL PAYABLES 2,560 2,587
(a) Maturity analysis of payables
(b) Nature and extent of risk arising from payables
Payables consist of:
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.
• contractual payables, classified as financial instruments and measured at amortised cost. Accounts payable represent liabilities for goods and
services provided to the Department prior to the end of the financial year that are unpaid; and
• statutory payables, that are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not
included in the category of financial liabilities at amortised cost, because they do not arise from contracts.
Please refer to Note 7.1 for the nature and extent of risks arising from contractual payables.
Please refer to Note 5.3(a) for the ageing analysis of contractual payables.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 5.3(a): Maturity analysis of financial liabilities as at 30 June
Carrying
Amount
Nominal
Amount
Less than 1
Month
1-3 Months 3 months - 1
Year
1-5 Years
$'000 $'000 $'000 $'000 $'000 $'000
2018
Financial Liabilities
At amortised cost
Payables 1,901 1,901 1,337 564 - -
Other Financial Liabilities (i)
- Accommodation Bonds 18,925 18,925 18,925 - - -
- DHHS Loan 1,472 1,520 - 125 375 1,020
- Other 2,129 2,129 404 - - 1,725
Total Financial Liabilities24,427 24,475 20,666 689 375 2,745
2017
Financial Liabilities
At amortised cost
Payables 1,996 1,996 1,360 626 10 -
Other Financial Liabilities (i)
- Accommodation Bonds 17,211 17,211 17,211 - - -
- DHHS Loan 1,922 2,000 - 120 360 1,520
- Other 2,178 2,178 458 - - 1,720
Total Financial Liabilities23,307 23,385 19,029 746 370 3,240
(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e GST payable)
The following table discloses the contractual maturity analysis for Castlemaine Health'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 2018
Maturity Dates
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 6: How we finance our operations
Note 6.1: Borrowings
2018 2017
$'000 $'000
CURRENT
DHHS Loans - Current (i) 500 480
NON CURRENT
DHHS Loans - Non-Current (i) 972 1,442
Total Borrowings 1,472 1,922
The DHHS Loans are unsecured loans which bear no interest. (i)
Finance costs of the Health Service incurred during the year are accounted as follows:
(a) Maturity analysis of borrowings
Please refer to note 5.3 (a) for the ageing analysis of borrowings.
(b) Defaults and breaches
Borrowings
All borrowings are initially recognised at fair value of the consideration received, less directly attributable transaction costs. The measurement
basis subsequent to initial recognition depends on whether the Health Service has categorised its borrowings as either, financial liabilities
designated at fair value through profit or loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and
the redemption value is recognised in net result over the period of the borrowings using the effective interest method.
The classification depends on the nature and purpose of the borrowing. Castlemaine Health determines the classification of its borrowing at initial
recognition.
During the current and prior year, there were no defaults and breaches of any of the borrowings.
This section provides information on the sources of finance utilised by the hospital during its operations, along with interest expenses (the cost of
borrowings) and other information related to financing activities of the hospital.
• Amounts of finance costs recognised as expenses; and
• Amounts of investment revenue earned on borrowed funds that has been deducted from the finance costs incurred.
The borrowings are a financial accommodation under section 30 of the Health Service Act 1988, and the borrowings have been approved by the
Minister and Treasurer. This approval was received in line with the loan commencing in June 2015.
This section includes disclosures of balances that are financial instruments (such as borrowings and cash balances). Note 7.1 provides additional,
specific financial instrument disclosures.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 6.2: Cash and Cash Equivalents
2018 2017
$'000 $'000
Cash on hand 4 4
Cash at bank 6,538 9,243
Deposits at call - 2,000
Total Cash and Cash Equivalents 6,542 11,247
Represented by:
Cash for Health Service Operations (as per Cash Flow Statement) 345 1,296
Loddon Mallee Rural Health Alliance 82 141
Cash for Monies Held in Trust
- Cash at Bank 6,115 9,810
Total Cash and Cash Equivalents 6,542 11,247
Note 6.3: Commitments for expenditure
There are no material operating or finance leases, capital or non capital commitments as at 30 June 2018 and 2017.
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.
Capital commitments and other expenditure commitments contracted for as at the end of the reporting period do not require disclosure where
the commitments are for the supply of inventories and have been recognised as liabilities in the balance sheet.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 7: Risks, Contingencies and Valuation Uncertainties
Note 7.1: Financial Instruments
(a) Financial instruments: categorisation
Contractual financial
assets - loans and
receivables
Contractual financial
liabilities at amortised
cost Total
2018 $'000 $'000 $'000
Contractual Financial Assets
Cash and cash equivalents 6,542 - 6,542
Receivables 1,700 - 1,700
Other Financial Assets 15,271 - 15,271
Total Financial Assets (i)23,513 - 23,513
Financial Liabilities
Payables - 1,901 1,901
Other Financial Liabilities
- DHHS Loans - 1,472 1,472
- Accommodation Bonds - 18,925 18,925
- Other - 2,129 2,129
Total Financial Liabilities (ii)- 24,427 24,427
Contractual financial
assets - loans and
receivables
Contractual financial
liabilities at amortised
cost Total
2017 $'000 $'000 $'000
Contractual Financial Assets
Cash and cash equivalents 11,247 - 11,247
Receivables 1,231 - 1,231
Other Financial Assets 9,893 - 9,893
Total Financial Assets (i)22,371 - 22,371
Financial Liabilities
Payables - 1,996 1,996
Other Financial Liabilities
- DHHS Loans - 1,922 1,922
- Accommodation Bonds - 17,211 17,211
- Other - 2,178 2,178
Total Financial Liabilities (ii)- 23,307 23,307
Castlemaine Health Service is exposed to risk from its activities and outside factors. In addition, it is often necessary to make judgements and
estimates associated with recognition and measurement of items in the financial statements. This section sets out financial instrument specific
information, (including exposures to financial risks) as well as those items that are contingent in nature or require a higher level of judgement to be
applied, which for the hospital is related mainly to fair value determination.
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 Castlemaine Health's activities, certain financial assets and financial liabilities arise under statute rather than a
contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments:
Presentation .
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. taxes payable)
(i) The total amount of financial assets disclosed here excludes statutory receivables (ie GST input tax receivable)
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 7.1: Financial Instruments (continued)
(b) Net holding gain/(loss) on financial instruments by category Interest
Income/(Expense) Total
$'000 $'000
2018
Financial Assets
Cash and Cash Equivalents (i)
146 146
Financial Assets - Loans and Receivables (i)
339 339
Total Financial Assets 485 485
Financial Liabilities
Financial Liabilites at Amortised Cost (ii) (58) (58)
Total Financial Liabilities (58) (58)
2017
Financial Assets
Cash and Cash Equivalents (i) 182 182
Financial Assets - Loans and Receivables (i)
257 257
Total Financial Assets 439 439
Financial Liabilities
Financial Liabilites at Amortised Cost (ii) (28) (28)
Total Financial Liabilities (28) (28)
(i) For cash and cash equivalents, and loans and receivables, the net gain or loss is calculated by taking the movement in the fair value of the
asset, interest revenue, and minus any impairment recognised in the net result;
(ii) For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense measured at
amortised cost.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 7.1: Financial Instruments (continued)
(c) Ageing analysis of Financial Assets as at 30 June
Less than 1
Month
1-3 Months 3 months -
1 Year
1-5 Years
$'000 $'000 $'000 $'000 $'000 $'000 $'000
2018
Financial Assets
Cash and Cash Equivalents 6,542 6,542 - - - - -
Loans and Receivables (i)
- Trade Debtors 467 318 72 65 12 - -
- Other Receivables 1,233 728 170 52 210 - 73
Other Financial Assets
- Loddon Mallee Rural Health Alliance
Investments 331 331 - - - - -
- Term Deposit 14,940 14,940 - - - - -
Total Financial Assets 23,513 22,859 242 117 222 - 73
2017
Financial Assets
Cash and Cash Equivalents 11,247 11,247 - - - - -
Loans and Receivables (i)
- Trade Debtors 301 288 54 9 4 - -
- Other Receivables 930 618 86 103 55 - 68
Other Financial Assets
- Loddon Mallee Rural Health Alliance
Investments 314 314 - - - - -
- Term Deposit 9,579 9,579 - - - - -
Total Financial Assets 22,371 22,046 140 112 59 - 68
(i) Ageing analysis of financial assets excludes the types of statutory financial assets (i.e GST input tax credit)
Carrying
Amount
Not Past
Due and
Not
Impaired
Impaired
Financial
Assets
Past Due But Not Impaired
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 7.1: Financial Instruments (continued)
Categories of financial instruments
Loans and receivables and cash
· Cash and Deposits;
· Term Deposits ; and
· Receivables (excluding Statutory Receivables).
Financial liabilities at amortised cost
payables (excluding statutory payables); and
borrowings (including finance lease liabilities).
Offsetting financial instruments
Derecognition of financial liabilities
Market risk
Note 7.2: Contingent Assets and Contingent Liabilities
Castlemaine Health has no contingent assets and contingent liabilities as at 30 June 2018 or 30 June 2017.
Loans and receivables and cash are financial instrument assets with fixed and determinable payments that are not quoted on an active market.
These assets and liabilities 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 (and for assets, less any impairment). The Health Service
recognises the following assets in this category:
Castlemaine Health's exposure to market risk is primarily through interest rate risk with only insignificant exposure to foreign
currency and other price risks. Exposure to interest rate risk might arise primarily through Castlemaine Health's interest bearing assets. Cash flow
interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. In regards to financial liabilities,
Castlemaine Health undertakes financial liabilities with relatively even maturity profiles.
Financial liabilities at amortised cost are initially recognised on the date they are originated. They are initially measured at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any
difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest
bearing liability, using the effective interest rate method. The Health Service recognises the following liabilities in this category:
Offsetting financial instruments: Financial instrument assets and liabilities are offset and the net amount presented in the consolidated balance
sheet when, and only when, the Health Service concerned has a legal right to offset the amounts and intend either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Some master netting arrangements do not result in an offset of balance sheet assets and liabilities. Where the Health Service does not have a
legally enforceable right to offset recognised amounts, because the right to offset is enforceable only on the occurrence of future events such as
default, insolvency or bankruptcy, they are reported on a gross basis.
Derecognition of financial liabilities: A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised as an ‘other economic flow’ in the comprehensive operating statement.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 8: Other Disclosures
Note 8.1: Equity2018 2017
$'000 $'000
(a) Surpluses
Property, Plant & Equipment Revaluation Surplus 1
Balance at the beginning of the reporting period
- Land 3,182 2,716
- Buildings 29,882 29,882
Revaluation Increment/(Decrements) - 466
Balance at the end of the reporting period 33,064 33,064
Represented by:
- Land 3,182 3,182
- Buildings 29,882 29,882
Total Surpluses 33,064 33,064
(b) Contributed Capital
Balance at the beginning of the reporting period 21,202 21,202
Balance at the end of the reporting period 21,202 21,202
(c) Accumulated Deficits
Balance at the beginning of the reporting period (14,492) (14,450)
Net Result for the Year (1,469) (42)
Balance at the end of the reporting period (15,961) (14,492)
Total Equity at end of financial year 38,305 39,774
Contributed capital
Property, plant and equipment revaluation surplusThe asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets.
(1) The property, plant & equipment asset revaluation surplus arises on the revaluation of property, plant & equipment.
This section includes additional material disclosures required by accounting standards or otherwise, for the
understanding of this annual report.
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.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
2018 2017
$'000 $'000
Net result for the period (1,469) (42)
Non-cash movements:
Depreciation 2,089 2,040
Share of Joint Operation Assets (41) (38)
Discount on DHHS Loan (30) 28
Movements included in investing and financing activities
Net (gain)/loss from disposal of non financial physical assets 11 (87)
Movements in assets and liabilities:
Change in operating assets and liabilities
(Increase)/decrease in receivables (487) (411)
(Increase)/decrease in prepayments (34) (46)
(Increase)/decrease in inventories (57) 63
Increase/(decrease) in payables (27) 190
Increase/(decrease) in provisions 987 216
NET CASH INFLOW FROM OPERATING ACTIVITIES 942 1,913
Note 8.2: Reconciliation of Net Result for the Year to Net Cash Inflow from Operating Activities
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Governing Boards
Ms Carolyn Wallace
Mr Garry Fehring
Ms Sharon Fraser
Mr David Goldberg
Dr Simon Judkins
Ms Margaret Anne Ronnau
Mr Adam Sevdalis
Ms Anna Skreiner
Ms Kerry Anderson
Ms Vicky Mason
Ms Katherine Hamond
Accountable Officers
Mr Ian Fisher
Remuneration of Responsible Persons
2018 2017
Income Band No. No.
$0 - $9,999 10 11
$220,000 - $229,999 1 1
Total Numbers 11 12
$280,030 $273,987
1/7/2017 - 30/6/2018
Total remuneration received or due and receivable by Responsible Persons from the reporting entity
Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Parliamentary Services.
Remuneration received or receivable by responsible persons was in the range: $270,000 - $280,000 ($260,000 - $270,000 in 2016-17).
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
The Honourable Martin Foley, Minister for Housing, Disability and Ageing, Minister for Mental Health1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 30/6/2018
1/7/2017 - 6/7/2017
Note 8.3: Responsible Persons Disclosures
Period
Responsible Ministers:
The Honourable Jill Hennessy, Minister for Health, Minister for Ambulance Services 1/7/2017 - 30/6/2018
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.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 8.4: Remuneration of Executives
Remuneration of executive officers
2018 2017
$'000 $'000
Short-term employee benefits 530 494
Post-employment benefits 45 42
Other long-term benefits 10 10
Total Remuneration (i) 585$ 546
Total Number of executives 4 4
Total Annualised Employee Equivalent (ii) 3 3
ii Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.
The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are
shown in the table below. Total annualised employee equivalent provides a measure of full time equivalent executive officers over the
reporting period.
Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is
disclosed in the following categories.
Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are usually paid or payable on a regular
basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.
i The total number of executive officers includes persons who meet the definition of Key Management Personnel (KMP) of Castlemaine Health
under AASB 124 Related Party Disclosures and are also reported within Note 8.5 Relates Parties.
Total Remuneration
Post-employment benefits include superannuation entitlements.
Other long-term benefits include long service leave, other long-service benefit or deferred compensation.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 8.5 Related Parties
Remuneration of Key Management Personnel (KMP)
2018 2017
$'000 $'000
Short-term employee benefits 1,154 1,096
Post-employment benefits 101 98
Other long-term benefits 17 16
Total Number of KMP 19 19
Total Remuneration 1,272$ 1,210
Note 8.6 Remuneration of auditors2018 2017
$'000 $'000
Victorian Auditor-General's Office
Audit or review of financial statements 26 25
26 25
Note 8.7 Events Occurring after the Balance Sheet Date
Note 8.8: Economic DependencyCastlemaine Health is dependent on the Department of Health and Human Services for the majority of its revenue used to operate the entity. At
the date of this report, the Board of Directors has no reason to believe the Department will not continue to support Castlemaine Health.
Remuneration represents the expenses incurred by the entity in the current reporting period for the employee, in accordance with AASB 119
Employee benefits.
During the year, Maldon Hospital, an Organisation of which Ian Fisher, Chief Executive Officer, is also the Chief Executive Officer, continued to
require extensive provision of contracted services. The contracted services involve the provision of extensive administration services such as
Finance, IT, HR, and Food Services. The value of the contract during 2017-18 was $233,448. Other non-contracted services occur as required. The
value of net transactions between Maldon Hospital and Castlemaine Health are $677,890. In this context, transactions are only disclosed when
they are considered of interest to users of the financial report in making and evaluation decisions about the allocation of scarce resources.
There have been no events subsequent to the reporting date which require further disclosure.
Castlemaine Health received funding from the Department of Health and Human Services of $28 million (2017: $28 million)
Total Remuneration
During the year, Peter Sloan, Chief Medical Officer, was also the Chief Medical Officer of Kyneton Health and Seymour Health. The value of net
tansactions between Castlemaine Health and Kyneton Health for the 2017-18 financial year was $47,520. There were no transactions between
Castlemaine Health and Seymour Health.
The hospital is a wholly owned and controlled entity of the State of Victoria. Related parties of the hospital include:
• all key management personnel and their close family members;
• all cabinet ministers and their close family members; and
• all hospitals and public sector entities that are controlled and consolidated into the whole of state consolidated financial statements.
Key management personnel (KMP) of the hospital include the Portfolio Ministers, all Board Members and Executives of Castlemaine Health, and
the Castlemaine Health managers of Information Technology, Engineering, Human Resources and Finance. The compensation detailed below
excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances is set by the Parliamentary Salaries
and Superannuation Act 1968, and is reported within the Department of Parliamentary Services’ Financial Report.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 8.9: AASBs issued that are not yet effective
Standard/Interpretation 1 SummaryApplicable for annual reporting periods
beginning on
Impact on public sector entity financial
statementsAASB 9 Financial Instruments The key changes include the simplified
requirements for the classification and
measurement of financial assets, a new
hedge accounting model and a revised
impairment loss model to recognise expected
impairment losses earlier, as opposed to the
current approach that recognises impairment
only when incurred.
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.
The initial application of AASB 9 is not
expected to significantly impact the financial
positon however there will be a change to
the way financial instruments are classified
and new disclosure requirements.
AASB 2014-1 Amendments to Australian
Accounting Standards
Amends various AASs to reflect the AASB’s
decision to defer the mandatory application
date of
AASB 9 to annual reporting periods beginning
on or after 1 January 2018, and to amend
reduced disclosure requirements.
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.
AASB 2014-7 Amendments to Australian
Accounting 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 15 Revenue from Contracts with
Customers
The core principle of AASB 15 requires an
entity to recognise revenue when the
entity satisfies a performance obligation
by transferring a promised good or
service to a customer. Note that
amending standard AASB 2015 8
Amendments to Australian Accounting
Standards – Effective Date of AASB 15 has
deferred the effective date of AASB 15 to
annual reporting periods beginning on or
after 1 January 2018, instead of 1 January
2017.
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.
AASB 2014-5 Amendments to Australian
Accounting Standards arising from AASB 15
Amends the measurement of trade
receivables and the recognition of dividends
as follows:
• Trade receivables that do not have a
significant financing component, are to be
measured at their transaction price, at initial
recognition.
• Dividends are recognised in the profit
and loss only when:
o the entity’s right to receive payment
of the dividend is established;
o it is probable that the economic
benefits associated with the dividend will
flow to the entity; and
o the amount can be measured
reliably.
1 Jan 2018, except amendments to AASB 9
(Dec 2009) and AASB 9 (Dec 2010) apply from
1 Jan 2018
The assessment has indicated that there will
be no significant impact for the public sector.
AASB 2015-8 Amendments to Australian
Accounting Standards – Effective Date of
AASB 15
This Standard defers the mandatory effective
date of AASB 15 from 1 January 2017 to 1
January 2018.
1 Jan 2018 This amending standard will defer the
application period of AASB 15 for for-profit
entities to the 2018-19 reporting period in
accordance with the transition requirements.
Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2018 reporting period. DTF assesses the impact of all these new standards and
advises the Health Service of their applicability and early adoption where applicable.
As at 30 June 2018, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for
reporting periods commencing after the stated operative dates as detailed in the table below. Castlemaine Health has not and does not intend to adopt these standards early.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 8.9: AASBs issued that are not yet effective (continued)
AASB 2016-3 Amendments to Australian
Accounting 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).
1 Jan 2018 The assessment has indicated that there will
be no significant impact for the public sector,
other than the impact identified for AASB 15
above.
AASB 2016-7 Amendments to Australian
Accounting Standards – Deferral of AASB 15
for Not-for-Profit Entities
This Standard defers the mandatory effective
date of AASB 15 for not-for-profit entities
from 1 January 2018 to 1 January 2019.
1 Jan 2019 This amending standard will defer the
application period of AASB 15 for not-for-
profit entities to the 2019-20 reporting
period.
AASB 2016-8 Amendments to Australian
Accounting Standards – Australian
Implementation Guidance for Not-for-Profit
Entities
AASB 2016-8 inserts Australian requirements
and authoritative implementation guidance
for not-for-profit-entities into AASB 9 and
AASB 15.
This Standard amends AASB 9 and AASB 15 to
include requirements to assist not-for-profit
entities in applying the respective standards
to particular transactions and events.
1 Jan 2019 This standard clarifies the application of AASB
15 and AASB 9 in a not-for-profit context. The
areas within these standards that are
amended for not-for-profit application
include:
AASB 9
• Statutory receivables are recognised
and measured similarly to financial assets
AASB 15
• The “customer” does not need to be the
recipient of goods and/or services;
• The “contract” could include an
arrangement entered into under the
direction of another party;
• Contracts are enforceable if they are
enforceable by legal or “equivalent means”;
• Contracts do not have to have
commercial substance, only economic
substance; and
• Performance obligations need to be
“sufficiently specific” to be able to apply
AASB 15 to these transactions.
AASB 16 Leases The key changes introduced by AASB 16
include the recognition of operating leases
(which are currently not recognised) on
balance sheet.
1 Jan 2019 The assessment has indicated that most
operating leases, with the exception of short
term and low value leases will come on to
the balance sheet and will be recognised as
right of use assets with a corresponding lease
liability.
In the operating statement, the operating
lease expense will be replaced by
depreciation expense of the asset and an
interest charge.
There will be no change for lessors as the
classification of operating and finance leases
remains unchanged.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 8.9: AASBs issued that are not yet effective (continued)
AASB 1058 Income of Not-for-Profit Entities AASB 1058 standard will replace the majority
of income recognition in relation to
government grants and other types of
contributions requirements relating to public
sector not-for-profit entities, previously in
AASB 1004 Contributions.
The restructure of administrative
arrangement will remain under AASB 1004
and will be restricted to government entities
and contributions by owners in a public
sector context,
AASB 1058 establishes principles for
transactions that are not within the scope of
AASB 15, where the consideration to acquire
an asset is significantly less than fair value to
enable not-for-profit entities to further their
objective.
1 Jan 2019 The current revenue recognition for grants is
to recognise revenue up front upon receipt of
the funds.
This may change under AASB 1058, as capital
grants for the construction of assets will need
to be deferred. Income will be recognised
over time, upon completion and satisfaction
of performance obligations for assets being
constructed, or income will be recognised at
a point in time for acquisition of assets.
The revenue recognition for operating grants
will need to be analysed to establish whether
the requirements under other applicable
standards need to be considered for
recognition of liabilities (which will have the
effect of deferring the income associated
with these grants). Only after that analysis
would it be possible to conclude whether
there are any changes to operating grants.
The impact on current revenue recognition of
the changes is the phasing and timing of
revenue recorded in the profit and loss
statement.
Castlemaine Health
Notes to the Financial Statements
30 June 2018
Note 2018 2017
$'000 $'000
Grants
Operating 2.1 38,510 39,718
Capital 2.1 1,104 643
Interest and Dividends 2.1 446 362
Sales of Goods and Services 9,507 8,028
Other income
Other capital income 2.1 359 653
Revenue from Transactions 49,926 49,404
Employee Expenses 3.1 (36,883) (35,422)
Operating Expenses
Supplies and consumables 3.1 (3,333) (3,920)
Non salary labour costs 3.1 (2,970) (2,704)
Other (5,687) (4,487)
Non-Operating Expenses
Specific Expense 3.3 34 (289)
Financial Cost - Other 3.4 (58) (28)
Expenditure for Capital Purpose 3.1 (53) (859)
Depreciation and Amortisation 4.4 (2,089) (2,040)
Expenses from Transactions (51,039) (49,749)
Net Result from Transactions (1,113) (345)
Other economic flows included in net result
Other gains/(losses) from other economic flows 3.1 (356) 303
Total other economic flows included in net result (356) 303
Net result from continuing operations (1,469) (42)
Net result from discontinued operations - -
NET RESULT FOR THE YEAR ^ (1,469) (42)
Other comprehensive income
Items that will not be reclassified to net result
Changes in physical asset revaluation surplus 8.1 (a) - 466
Total other comprehensive income - 466
Comprehensive result (1,469) 424
Note 8.10: Alternative presentation of comprehensive operating statement
For the Year Ended 30 June 2018
2
Auditor’s
responsibilities
for the audit of
the financial
report
As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report
based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the
financial report as a whole is free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, I exercise professional
judgement and maintain professional scepticism throughout the audit. I also:
• identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the health service’s internal control
• evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Board
• conclude on the appropriateness of the Board’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the health service’s ability to continue
as a going concern. If I conclude that a material uncertainty exists, I am required to draw
attention in my auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify my opinion. My conclusions are based on the audit
evidence obtained up to the date of my auditor’s report. However, future events or conditions
may cause the health service to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
I communicate with the Board regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that I
identify during my audit.
MELBOURNE
3 September 2018
Ron Mak
as delegate for the Auditor-General of Victoria
Our services are delivered on the traditional lands of the Dja Dja Wurrung people.
Artist: Kerri Douglas