2014-15 annual report - parliament of victoria...northern health annual report 2014 - 15 – 2 – c...

2014-15 Annual Report

Our VisionOutstanding health care for our community

Our MissionTo provide people in Melbourne’s north with outstanding health care by:

• Expanding from a great community based health service to a major university teaching health service

• Developing the services and the pathways to services that our community needs

• Embedding the best teaching and research practice in everything we do

• Cultivating a community of staff, patients and families who work together

Our Commitment• Passionate – we care

• Dedicated – we are focused

• Progressive – we look to improve

• Collaborative – we are a team

Our Priorities1. Provide a balanced mix of quality services2. Fully utilise our resources and develop our infrastructure3. Strengthen organisational capability4. Attract and develop a high performing workforce

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ContentsReport of OperationsChair’s Report 2

CEO’s Report 5

Northern Health Board 6

Corporate Governance 9

Northern Health Executive Team 12

Organisational Structure 15

Our Services 16

Our Achievements 21

Statement of Priorities 29

Performance Priorities 33

Activity and Funding 35

Corporate Information 37

Disclosure Information 40

Financial Statements and Accompanying NotesTable of Contents - Financial Statements 43

Northern Health Annual Report 2014 - 15– 1 –

Northern Health Annual Report 2014 - 15 – 2 –


Chair’s Report

With Northern Health operating in such a complex service provision environment with demand growth and changing population health needs in its catchment, the Board has invested significant effort this year in review of population health needs, clinical services future needs and strategic plan review. While this was underway, staff began major redesign work to develop new ways of providing clinical services and, to do this, work more closely in conjunction with Northern Health service users and other health service providers in the north. This work has led to many improvements and highlighted the significant amount of work yet to be done.

Additional reviews have seen the finalisation of a range of new frameworks that harness a strategic approach to improvement in areas such as quality, people and culture, patients and service users.

While our financial performance remains a challenge, work is being done to align business drivers with financial imperatives, and I expect we will see further improvements arising from this being implemented in the next financial year. Our strategic approach to improvement and piloting new ways of working will deliver very positive and lasting outcomes.

Our whole of organisation partnership with Toyota has already demonstrated significant improvements for our patients. The two pilot areas to date of admission/discharge in one unit and Emergency Department processes are showing that we can increase the number of people to receive care and show an improvement against quality

metrics including patient and staff satisfaction while not increasing our resources.

We are now delivering better patient care outcomes in the Emergency Department where, despite the unprecedented spike in demand, we’ve improved outcomes for patients by finding and eliminating waste and inefficiency. This includes not only waiting time for patients, but also the time that staff wait for diagnostic interventions and results. Carefully identifying and implementing these changes makes the experience better for patients while helping us make better use of our resources.

A highlight of the year for me, which also stems from our partnership with Toyota, is the establishment of a space in the Northern Centre for Health and Education Research where staff in a multidisciplinary environment can learn to improve processes in a simulated health care setting. Staff can then bring that learning into the real health care environment, pilot and test those changes before bringing them back to the simulation and refining again.

This represents an innovative experience that has opened up the cycle of learning in a completely new and accessible way for Northern Health staff. The potential of this model has attracted the attention of many external observers, and it promises to be an exciting development that other health care providers can learn from.

We are also seeing real traction from many of our health service provider partnerships.

The Shared Vision for the North Framework includes service providers across primary care, community health, district nursing, local government, justice, police and education. The initial work of looking at the population health needs, what priorities have already emerged from different organisations planning processes and seeing what the gaps and duplications are has underpinned priority setting. The partnership identified the first priority for their combined attention as young children and their families which is prompting new collaborations around the baby boom in the north− especially those children and families who are most vulnerable.

By working collaboratively, all of these service providers will bring their resources together in a better way to deliver services to ensure the youngest members of our community get the best start. The work has identified the need to begin with women for better sexual and reproductive health, before pregnancy to support women’s decision making around healthy and wanted pregnancy, and then focus on children and their families from birth to starting school. Different partners in this collaboration take the lead role in each of the parts of this important work. New services have already emerged from these collaborations and there is an investment in preventing the high burden of chronic diseases for individuals that have their foundations in utero and in childhood.

With demand for services on Northern Health exceeding capacity, the resourcing of partnership development with other hospital services has become urgent and the Northern


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RESPONSIBlE BODIES DEClARATION

In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Northern Health for the year ending 30 June 2015.

Jennifer WilliamsBoard ChairNorthern Health13 August 2015

Health Board has provided leadership for this. This includes work with Kilmore and District Hospital, initially in surgical and maternity services, which will also optimise the use of the new surgical and inpatient facility which opened in Kilmore this year, and ambulatory care and aged care services.

Partnership development is also underway with Austin Health and the Royal Children’s Hospital.

All of these examples demonstrate our commitment to forging new, and better, ways of working to ensure Northern Health’s service delivery is of the highest quality, and the communities of the north are proud to use its services.

I’d like to pay tribute to the Northern Health Board, Janet Compton as CEO and the staff at Northern Health who have been a constant source of inspiration, in tough environments, for the change we need to achieve. The enthusiasm is evident not only from staff who have been working at Northern Health for a long time and who are both leading and working with us in this change, but also from team members who have joined us more recently because they were attracted by being part of the creative and innovative work environment.

The spirit of improvement staff bring to their work every day fills me with

great confidence that Northern Health will reach its potential as a key and proud part of the rich resources in the northern communities and also as a leading university teaching health service.

Marilyn BeaumontBoard Chair9 July 2013 - 30 June 2015Northern Health



Transformational change is never an easy process and the past year has been a difficult one financially for Northern Health.

Financial sustainability is critical to our success as a health care provider serving one of the state’s fastest growing population areas and growth in demand for our services has eclipsed estimates.

Financial imperatives are a key consideration of our new strategic plan which is based upon four pillars:

1. Our patients always come first

2. We provide the highest levels of quality and safety in our health services

3. We value a talented and engaged workforce

4. As an organisation, we are committed to financial sustainability.

A significant amount of new work is underway to improve our financial position as we go forward, particularly in the development of partnership strategies that will help us capably deal with demand for our services now and well into the future.

Foremost among our new partnerships is our work with Toyota which is helping us build capacity for innovation. This new partnership has challenged us to think very differently about how we do what we do. By improving service efficiencies and quality, we have found new ways to add value to our patients.

This new way of working has already delivered clear benefits for our patients, particularly in Unit D and the way we think about discharge which has resulted in reductions in length of stay that will be incorporated across the rest of the organisation.

We have also sought input from our local community and been very successful in bringing the feedback and experiences of our consumers into our planning in a meaningful way. We know that our consumers want to be involved in decisions about their health care and how we redesign our services to meet rising demand. As a result, we have refreshed our clinical services plan and strategic plan to ensure that we’re focused on things that are important to our community.

Maternity services are incredibly important in our fast growing region −again this year we experienced another baby boom in the north, with a record 3,420 babies delivered at The Northern Hospital.

We undertook a comprehensive redesign of our maternity services this year which has delivered extremely positive outcomes. Using this redesign approach, waiting times in our maternity and obstetrics clinics have been reduced from an average of 95 minutes to 26 minutes, and patient satisfaction has improved significantly.

This year we also opened the doors of the Northern Centre for Health Education and Research (NCHER) which will enable us to train an additional 900+ health professionals through innovation education and inter-professional learning opportunities. The NCHER is the culmination of many years of planning and execution with our academic partners, la Trobe University and University of Melbourne. The teaching and research potential of the NCHER promises to deliver lasting benefits not just to the health care professionals, but directly to the northern community, as health

conditions affecting our local population are investigated and addressed.

Finally, I’d like to acknowledge the selfless commitment of the outgoing Chair of the Northern Health Board, Marilyn Beaumont. An inspiring leader with an unwavering sense of social justice, Marilyn’s advocacy for the people of the north has helped shape positive health outcomes for our community, both now and well into the future.

As we continue on our journey of transformational change and welcome Jennifer Williams to the position of Board Chair, as an organisation we will continue to learn, consolidate and build upon the foundations and partnerships that stand to make our health service, and the health of our community, even better.

Janet comptonChief Executive Officer Northern Health

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3Responsible Officer Endorsement

I am pleased to endorse the Report of Operations for Northern Health for the year ending 30 June 2015.

Mr Robert BurnhamActing Chief Executive OfficerNorthern Health13 August 201518 August 2014

CEO’s Report


Ms Marilyn Beaumont Board Chair

With a general and psychiatric nursing background, Marilyn Beaumont was appointed to the Northern Health Board in 2009, and to the position of Board Chair in 2013.

Marilyn has many years’ experience as a non-executive director. She has served on a number of Australian boards including government owned enterprises, charitable and for profit organisations and those established as a Company limited by Guarantee. These include Health Insurance Commission, HESTA, Hanover Welfare Services and Melbourne Health.

In addition to her Northern Health work she is currently a Board member of Northern Melbourne Medicare local and Chair of the Australian Women’s Health Network National Board.

Marilyn’s work has included Executive Director of Women’s Health Victoria, a state-wide women’s health promotion and advocacy service between 1995 and 2010, holding the position of Australian Nursing Federation Federal Secretary between 1987 and 1995 and from 1982 to 1987 she was the ANF South Australian Branch Secretary.

She received the Australian Centenary of Federation medal in 2001 and was inducted to the Victorian Honour Roll of Women in 2007; both for her leadership and contribution to women’s health. ●

Mr Jim Bailey

A Graduate member of the Australian Institute of Company Directors (AICD) Jim Bailey joined the Board in November 2014. He has provided strategic business advice, coaching and consulting services to key executives in many companies and across a number of sectors.

Jim’s core profession is human resources. In 1992 he led the formation of a new, national organisation, the Australian Human Resources Institute (AHRI), having worked in a number of honorary positions at state and national levels for several years in the predecessor organisation, the Institute of Personnel Management Australia (IPMA).

Jim is an active member of four Boards in total in the private sector and in a not for profit organisation, as well as chairing an Advisory Board for a University faculty. Both of the professional bodies to which Jim belongs, namely AHRI and the Recruitment Consulting Services Association (RCSA), have awarded him their highest honours, namely life Fellowship.

In addition, his involvement with Bailey, Shaw’s executive recruitment clients has given him a wealth of exposure to a broad cross section of some of Australia’s best companies. ●

Associate Professor John Fitzgerald

Associate Professor Fitzgerald is an expert in alcohol and drug Policy, with a PhD in Pharmacology on the drug ecstasy and a second PhD in English on the discourse and language used to understand psychoactive substances.

Associate Professor Fitzgerald has received numerous research grants from national funding bodies and has worked internationally assisting with health training and policy development. He has served as Associate Dean (Knowledge Transfer) in the Faculty of Medicine, Dentistry and Health Sciences and worked at the Victorian Health Promotion Foundation where he led the research, alcohol, tobacco and healthy eating programs and acted as CEO for 10 months. Associate Professor Fitzgerald also has an active media profile appearing on television and radio as an expert commentator on matters relating to alcohol, tobacco, healthy eating and healthy urban planning strategies.

Associate Professor Fitzgerald joined the Northern Health Board in October 2013 and is currently working at The University of Melbourne continuing his teaching, supervision of research higher degree students and research on issues ranging from diabetes self-care, preventive health financing and population health approaches to health and wellbeing. ●

Northern Health Board



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Mr Bryan Joyce

Brian Joyce is a Certified Practicing Accountant and Master of Administration (Monash). He has extensive experience in hospitals and health services management and financing.

Until 2008 Mr Joyce was Regional Director of the North and West Metropolitan Region of the Department of Human Services (DHS). During his career with DHS Mr Joyce held a number of senior executive positions including Director, Primary and Community Health, Executive Director Operations, and Regional Director, Southern Metropolitan Region. Mr Joyce also held the position of Deputy Chief General Manager of the former State Department of Health.

Prior to joining the public service, Mr Joyce held the positions of Finance Director, Box Hill Hospital and Manager, Finance and Services, of the Victorian Branch of the Health Insurance Commission and Medibank Private.

Since retiring from the public service, Mr Joyce has served as the government appointed Administrator of Western Education Support and Training Network (WestNet) and Advisor to a Youth Justice Custodial Services Taskforce. Mr Joyce also undertakes service review work in the human services sector. ●

Dr Alison lilley

Alison lilley is a currently practicing Specialist Anaesthetist who was appointed to the Northern Health Board in 2014.

Dr lilley brings with her a wealth of experience from both the world of clinical medicine as well as senior level management in the public health system. Her past appointments include 10 years as Director of Anaesthesia and six years as Director of Perioperative Services at the Royal Women’s Hospital. She has also been Chair of the Senior Medical Staff at RWH, and a member of the Industrial Relations sub-committee of the Board of the AMA (Vic). In addition she is an Examiner for the Australian and New Zealand College of Anaesthetists, and is a member of the Anaesthetic Advisory Committee, and of the Obstetric Medical Advisory Committee at Epworth HealthCare.

She has received a number of Research grants, including a NHMRC grant of $225,000 for an investigation into the role of cytokines in pelvic pain in women.

Alison has a Masters in Public Policy and Management, and a Graduate Certificate in Health Economics from Monash University, and is a passionate supporter of women’s health in the public sector and a firm believer in the right of every member of the Australian public to have equity of access to the highest quality health care. She is involved in a number of Safety and Quality and Risk Management committees at various hospitals, and most recently consulted on the development of quality audit processes for the development of four new public health programs at a large Community Health provider in Massachusetts, USA. ●

Professor Vin Massaro

Professor Vin Massaro has considerable experience in senior management in higher education and health institutions, and as a consultant and advisor in Australia and internationally. He has also chaired or been a member of several boards.Professor Massaro is currently Managing Director of Massaro Consulting, a company providing strategic advice on higher education policy, management and governance, and on health workforce planning and training to organisations and government departments.He has been Chief Executive of the Royal Australasian College of Surgeons and was the inaugural Chief Executive of the Victorian State Board of Education. He has held senior positions at Flinders University and the lincoln Institute of Health Sciences (now the Faculty of Health Sciences at la Trobe University). He has also been a consultant on higher education to the OECD and is editor of its international Journal of Higher Education Management and Policy.Professor Massaro is a member of the Board of the Northern Health Foundation and of the Royal Australian and New Zealand College of Radiologists. His previous Board roles have included the Anti-Cancer Foundation of South Australia, the Australian Safety and Efficacy Register of New Interventional Procedures – Surgical (ASERNIP-s), Flinders Reproductive Medicine, Flinders Consulting and the Advisory Board of the Centre for International Mental Health at the University of Melbourne.He is a Professorial Fellowship in the lH Martin Institute for Higher Education leadership and Management and the Melbourne Centre for the Study of Higher Education at the University of Melbourne. He has also held a Professorial Fellowship in the Australian Health Workforce Institute, a joint Institute of the Universities of Melbourne and Queensland. ●





Mr Peter McWilliam

Peter brings with him extensive skills in business and management derived from 37 years of experience working at RBM and Paramount Plastic Extrusions, one of Australia’s largest privately owned plastic manufacturing companies. Peter served as a General Manager and Company Director within in the organisation and its subsidiary Paramount Plastics (Aust.) for 30 years, providing leadership based on inspiring effective teamwork, strong planning and organisational skills.

Peter understands the importance and value of staff in an organisation’s success and has many years of experience in implementing training and mentoring programs to maintain organisational viability. Peter sat on the Australian Standards subcommittee on Building Facades and Glazings in the late 1980s and initiated and implemented Australian and International Standards ISO9001 and 9002 at Paramount Plastics (Aust.) from the mid 1990s, successfully being audited and retaining accreditation for Paramount Plastics (Aust.) from then until his retirement.

As a resident of the northern suburbs, Peter is familiar with its rapid growth and development and the evolving needs the local community requires. Since retiring in 2010, Peter is now focused on sharing his business acumen and skills to benefit health services in the northern Melbourne area. ●

Ms Rima Newman

Rima Newman is a principal with the law firm logie-Smith lanyon, heading up the firm’s Employment and Industrial Relations law division. In her almost 20 years of working as a lawyer, Rima has worked with clients in a broad range of businesses, from SMEs to multi-nationals.

Rima brings with her a wealth of experience in assisting businesses (including those with large workforces) on a range of complex legal issues, providing solutions tailored to the particular commercial (and often challenging) environments in which her clients operate. Her ability to partner with different levels of management, analyse difficult transactions and provide decisive strategic guidance, has made Rima an invaluable trusted advisor to many of the businesses with which she deals.

Rima is currently a member of the law Institute of Victoria, Industrial Relations Society of Victoria and the Australian Human Resources Institute. Rima was also a mentor in the Women in Finance Mentor/Mentee program for 2012. ●

Ms Sabine Phillips

Sabine Phillips is a Principal at Russell Kennedy lawyers, a Melbourne and Canberra law firm. Ms Phillips practices in litigation and administrative law, predominantly in the health and aged care sector. She specialises in corporate and clinical governance, risk management, compliance and dispute resolution in health and aged care.

Ms Philips holds a Master of laws, a Master of Business (Organisation Behaviour) and a Bachelor of Applied Science (Advanced Nursing). She is also a non-practising registered nurse.

Ms Phillips is also a board member of Australian Children’s Education & Care Quality Authority (ACECQA) and is a board member of Uniting AgeWell. ●




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APPOINTMENT OF DIRECTORS

Terms of appointment vary from one to three years, at an annual salary set by the Minister in accordance with guidelines issued by the Victorian Public Sector Commission.

Board changes during the financial year were as follows:

• In July 2014 on the recommendation of the Minister, the Governor-in-Council appointed Dr Alison lilley to the Board until 30 June 2017.

• In October 2014 on the recommendation of the Minister, the Governor-in-Council appointed Mr Jim Bailey to the Board until 30 June 2017.

ROlE OF THE BOARD

The role of the Board is to exercise good governance in the achievement of Northern Health’s stated objectives.

Key aspects of this governance role include:

• Setting the organisation’s strategic direction.

• Establishing a policy framework and primary policy.

• Appointing and monitoring the performance of the Chief Executive Officer.

• Evaluating organisational performance.

• Ensuring organisational accountability and compliance with legislative requirements.

• Evaluation of the Board’s own effectiveness in governance.

The Directors contribute to the governance of Northern Health collectively as a Board by attending to business through meetings and a range of informal processes over the year.

In addition to the minimum number of Board meetings that need to be attended, Directors contribute through

participation in or chairing the various committees of the Board. Between committee meetings they are often involved in assisting management in the performance of Northern Health functions. Directors also attend significant functions and ministerial events within Northern Health and externally with external stakeholders.

The Board meets monthly. There were 12 Board meetings held in the financial year 1 July 2014 to 30 June 2015.

BOARD MEETINGS AND ACCESS TO MANAGEMENT

At Board meetings, members of the Northern Health Executive regularly present papers relevant to their areas of responsibility in the health service. Between meetings, individual Board members have regular contact with management through committee or project involvement and are regularly contacted by the Chief Executive Officer on major issues. Directors are encouraged to undertake site visits to Northern Health’s five separate campuses in order to view first-hand the activities and services provided at hospitals and facilities.

DElEGATION OF FUNCTIONS

The by-laws provide for the delegation of duties by the Board. The Board has approved a detailed Delegations Policy enabling designated Northern Health executives to perform their duties through the exercise of specified authorities.

BOARD COMMITTEES

Directors lend their expertise to the operations of committees of the Board and in this way some of the general functions of the Board are delegated to small groups of Directors.

Directors and members of the Northern Health Executive were members of committees as follows:

Audit and Risk CommitteeMs Sabine Phillips - Director (Chair)Mr Brian Joyce - Director (Deputy Chair) Ms Marilyn Beaumont - Board ChairMs Janet Compton - Chief Executive OfficerMr Sam Costanzo - Executive Director, FinanceMr Colin Holland - Interim Chief Financial OfficerMs Michelle McDade - Executive Director, Performance ImprovementMr Robert Burnham - Executive Director, Corporate and Commercial Services

Meetings were also attended by representatives from Northern Health’s internal and external auditors.

The Audit and Risk Committee assists the Board in fulfilling its financial management and related reporting responsibilities for Northern Health, including compliance with laws and regulations, the maintenance of an effective and efficient audit system and the maintenance of ongoing relationships with Northern Health’s auditors.

Finance CommitteeMr Brian Joyce - Director (Chair)Mr Peter McWilliam - Director (Deputy Chair)Ms Alison lilley - DirectorMr Jim Bailey - DirectorMs Janet Compton - Chief Executive OfficerMr Sam Costanzo - Executive Director, FinanceMr Colin Holland - Interim Chief Financial Officer Mr Robert Burnham - Executive Director, Corporate and Commercial ServicesMs Clare McGinness - Executive Director, Acute Health / Chief Nursing OfficerMs Jenni Smith - Executive Director, Continuing Care and Ambulatory Services / Chief Allied Health Officer

Corporate Governance

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The Finance Committee is responsible to the Board for ensuring that financial and asset management strategies and policies enhance the productivity and performance of Northern Health in line with government policies and directives. In addition, the committee ensures that Northern Health adheres to its financial, business and strategic plans, addresses the statement of priorities, and operates within its budget.

Strategy Planning and Workforce CommitteeProfessor Vin Massaro - Director (Chair)

Ms Rima Newman - Director (Deputy Chair)

Jim Bailey - Director

Ms Janet Compton - Chief Executive Officer

Ms Zemeel Saba - Executive Director, People and Culture

Ms Clare McGinness - Executive Director, Acute Health / Chief Nursing Officer

Ms Jenni Smith - Executive Director, Continuing Care and Ambulatory Services / Chief Allied Health Officer

Mr Robert Burnham - Executive Director, Corporate and Commercial Services

Mr Sam Costanzo - Executive Director, Finance and Data Management

Associate Professor Kwang lim - Chief Medical Officer

Professor Peter Brooks - Executive Director, Research

The Strategy Planning and Workforce Committee assists the Board to ensure that strategic and business plans are developed and implemented in a manner that enhances the mission, strategic goals and values of Northern Health.

Quality CommitteeMs Rima Newman - Director (Chair)

Ms Sabine Phillips - Director (Deputy Chair)

Ms Alison lilley - Director

Ms Janet Compton – Chief Executive Officer

Ms Michelle McDade – Executive Director, Performance Improvement

Ms Clare McGinness – Executive Director, Acute Health / Chief Nursing Officer

Ms Jenni Smith - Executive Director, Continuing Care and Ambulatory Services / Chief Allied Health Officer

Associate Professor Kwang lim - Chief Medical Officer

Mr Robert Burnham - Executive Director, Corporate and Commercial Services

The Quality Committee is responsible to the Board for ensuring that effective and accountable systems are in place to monitor and improve the quality and effectiveness of health services provided by Northern Health. The committee ensures that any systemic problems identified are addressed in a timely manner, and that the organisation strives to continuously improve quality and foster innovation.

Remuneration and Appointments CommitteeMs Marilyn Beaumont – Board Chair (Chair)

Ms Rima Newman - Director (Deputy Chair)

Mr Brian Joyce - Director

Ms Janet Compton - Chief Executive Officer

The role of the Remuneration Committee is to advise and make recommendations to the Board in relation to matters involving executive and senior staff remuneration, performance and recruitment.

Patient Experience and Community Advisory CommitteeAssociate Professor John Fitzgerald - Director (Chair)

Brian Joyce - Director (Deputy Chair)

Peter McWilliam - Director

Jim Bailey - Director


Ms Michelle McDade – Executive Director, Performance Improvement

Ms Anastasia Ah Tong – Consumer representative

Ms Maureen Canzano – Consumer representative

Ms Fiona Micelotta – Consumer representative

Ms Nurcihan Ozturk – Consumer representative

Ms Dalal Sleiman – Consumer representative

Dr Ken Ekersall – Consumer representative

Ms Rahimah Mah – Consumer representative

Ms Helen Wilson – Consumer representative

The purpose of the Committee is to advise the Board on strategies to enhance and promote consumer and community participation at all levels within the health service. The Committee seeks to enhance the Board’s ability to advocate on behalf of the communities served by Northern Health.

Primary Care and Population Health CommitteeAssociate Professor John Fitzgerald - Director (Chair)

Professor Vin Massaro - Director (Deputy Chair)


Ms Jenni Smith – Executive Director, Continuing Care and Ambulatory Services / Chief Allied Health Officer

Mr Phillip Bain CEO, Plenty Valley Community Health

Ms Suzanne Miller CEO, Nexus Primary Health

Mr Neil Cowen CEO, Dianella Community Health

Ms Veronica Jamison CEO, Dianella Community Health

Corporate Governance (cont’d)



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DIRECTOR’S ATTENDANCE FOR BOARD AND SUB COMMITTEE MEETINGS: 1 JUlY 2014 – 30 JUNE 2015

Ms Sally Hoffmann General Manager, Wellbeing & Coordinated Care, Dianella Community Health

Mr Tim Fry Area Manager Aged Services & Northern Area DHHS, and West Metropolitan Region

Ms Sophie lloyd North and West Metropolitan Region, DHHS

Mr Neville Kurth Manager, Health, Access and Bushfire Recovery, City of Whittlesea

Ms Margarita Caddick Director, City Communities, Hume City Council

Mr John Dermanakis Manager, Northern Area Mental Health Service

Ms Fiona Hearn General Manager, North Western regions, Royal District Nursing Service

Ms Hayley Carr Manager, Northern Region, Royal District Nursing Service

Mr Max lee Executive Officer, Hume Whittlesea Primary Care Partnership

Ms Julie Watson Executive Officer, North East Primary Care Partnership

Ms Helen Riseborough CEO, Women’s Health in the North

Mr Geoff lavender A/CEO, Northern Melbourne Medicare local

The Population Health Advisory Committee assists the Board with inter-agency planning and the integration of health services in the catchment area - particularly as it relates to the primary care and acute sectors. The committee also assists the Board in identifying community health needs with a view to establish innovative programs to improve the accessibility and responsiveness of Northern Health services. This includes creating direct service partnerships with other health and community services, commissioning research in relevant areas and working in partnership with other local agencies on health promotion schemes.

No. of Meetings

Ms Marilyn Beaumont

Mr Jim Bailey (Commenced 1 October 2014)

Professor John Fitzgerald

Mr Brian Joyce

Dr Alison lilley

Professor Vin Massaro

Mr Peter McWilliam

Ms Rima Newman

Ms Sabine Phillips

Total

60

41

23

17

32

28

27

27

34

27

Board Finance Committee

Audit and Risk Committee

Quality Committee

Strategy Planning and

Workforce Committee

Patient Experience

and Community

Advisory Committee

Primary Care and

Population Health

Committee

Remuneration and

AppointmentsCommittee

12

12

7

8

11

11

10

11

11

11

12

11

5

10

5

3

11

1

2

7

7

2

1

6

3

2

4

6

11

4

1

7

11

6

6

2

5

1

6

6

3

1

2

3

3

1

6

1

1

5

1

5

2

3

3

2

1

3

Note: In July 2015 the Sub Committee Memberships was reviewed.



Ms Janet Comptonchief executive officerBSc, Grad Dip, Phyt, Grad Dip Admin, Masters Pub Pol, GAICD

Janet joined Northern Health as Chief Executive Officer in May 2013 after an extensive career in health. Janet’s career started as a physiotherapist after which she held several senior appointments in Victoria and New South Wales. Janet understands the importance of working with staff, patients, senior clinicians and the community to drive outstanding patient care. Throughout her career, Janet has gained the reputation as a transformational leader; leading intricate organisational change that has effectively delivered long-term strategic goals. Janet has a strong commitment to system wide reform, with a focus on improving the safety and quality of patient care at the same time achieving the organisations financial imperatives.

Janet has a Bachelor of Science, Post Graduate Diploma in Physiotherapy, Post Graduate Diploma in Administration, Masters in Public Policy and Diploma from the Australian Institute of Company Directors. ●

Mr Robert Burnhamexecutive Director, corporate and commercial servicesRN, RM, Crit Care, Bch App Sc (Admin), Grad Dip (Hlth Admin), MHA, AFACHSE

Robert Burnham possesses more than 42 years of acute health care experience. Mr Burnham built on his clinical nursing background and progressed through senior administrative and management roles including Human Resources, Industrial Relations and Chief Nursing Officer. He also has extensive experience in managing capital projects and service development being the former General Manager of The Northern Hospital, which has undergone significant redevelopment, as well as his involvement in the original Northern Hospital project.

Mr Burnham has represented Northern Health on various Department of Health (DoH) advisory committees including the Patient Management Task Force that reviewed acute health services in metropolitan hospitals, the DoH Patient and Client Management Information Systems Committee, and is currently serving a second term on the DoH Intensive Care Advisory Committee. ●

Mr Sam Costanzoexecutive Director, Finance / chief Financial officer

B.Bus (Accounting and Business Law), CPA, MBE (Masters Business Executive), Grad Dip (Business Computing), FIA (Fundraising Institute Australia)

(until 28 May 2015)

Mr Sam Costanzo commenced at Northern Health in 2005. He has held a variety of roles in the public health system over 13 years. Mr Costanzo oversaw a number of support service areas and was responsible for financial governance and oversight in support of the CEO and Executive team.

Prior to Northern Health, Mr Costanzo worked at Western Health, TXU (formally Wester Pty ltd), the Gas and Fuel Corporation, and Whittlesea City Council in senior finance and management roles. ●

Northern Health Executive Team



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Colin HollandInterim executive Director, Finance / Interim chief Financial officer(commenced 28 May 2015)

Colin Holland brings with him almost 30 years experience in the finance field. Coming from a predominantly manufacturing background, Mr Holland spent five years collective experience as Chief Financial Officer and Company Secretary for ASX listed hospitality group National leisure & Gaming limited and for agri-food business Select Harvests limited.

Mr Holland then spent 13 years in a variety of senior financial and commercial positions within South Pacific Tyres and three years as Divisional Financial Controller for the automotive division of Nylex limited.

He then moved into the public health sector and spent eight years in as the Chief Financial Officer for Melbourne Health and Group General Manager Finance and Performance for South Metropolitan Health Service in Western Australia.

Mr Holland has a Bachelor of Business (Accounting), a Master of Business Administration, and a Graduate Diploma of Company Secretarial Practice. He is a Fellow of CPA Australia, a member of Governance Institute of Australia, and a member of Australian Institute of Company Directors. ●

Associate Professor Kwang limclinical service Director Medical and continuing care / chief Medical officerMBBS(Hons) FRACP MD (Research)

Associate Professor Kwang lim joined Northern Health in 1999. Associate Professor lim was appointed Chief Medical Officer in 2010 and is also the Clinical Services Director Medical and Continuing Care. He is an Associate Professor in Medicine at Melbourne University as well as a Fellow of the Australian College of Physicians in Geriatric and General Medicine. Associate Professor lim has previous obtained a medical doctorate related to health services research and currently has research interests in aged care and health services delivery. ●

Ms Michelle McDadeexecutive Director, Performance ImprovementB App Sci (Physio), Grad Dip (Physio), MBA

Michelle McDade is an experienced health service executive having held operational roles in both the public and private health care sector. Michelle’s career is highlighted by her approach to quality and innovation, with successful submission for a number of grants through the Victorian Department of Business and Innovation.

Improving each patient’s experience in the health service, engaging staff in this important work, and searching for innovative solutions to the challenges in health care is of utmost importance to Michelle.

Michelle completed the Department of Health lINK leadership program in 2011 and travelled internationally in 2010 through a Victorian Quality Council Travelling Fellowship, studying excellence in Emergency Departments. Michelle has previously worked as a Physiotherapist, and holds a Masters of Business Administration. ●




Ms Clare McGinnessexecutive Director, Acute Health/chief nursing officerMasters (Nursing), Masters (Organisational Dynamics)

Clare McGinness has significant management experience in public and private sector roles, most notably as past President of the Australian Nursing and Midwifery Federation.

Her commitment to creating a seamless patient experience is based on three guiding principles - quality, collaboration and respect. Clare’s in-depth understanding of leadership in complex systems makes it possible to create efficient working environments where carers are supported in their roles and encouraged to further develop.

A past member of the Victorian Department of Health’s Victorian Quality Council, Clare has also completed the Williamson Community leadership Program in 2013 and holds Masters Degrees in Organisational Dynamics and Nursing. ●

Ms Zemeel Sabaexecutive Director, People and cultureGrad Cert (Management), Masters Business (HRM)

Zemeel joined Northern Health in December 2013 as the Executive Director of People and Culture. As a state enrolled nurse, she began her career working in palliative care nursing in Queensland. After seven years in this clinical role, Zemeel transitioned to a range of leadership roles with a human resource focus at Optus, Macquarie Investments and WorkCover Queensland.

After moving to Victoria in 2000, Zemeel continued to grow her career across a broad range of human resources roles at KPMG Australia, Corrections Victoria and Victoria Police. Zemeel has most recently worked within country Victoria at latrobe City Council as the General Manager of Organisational Excellence. This diverse role encompassed information services, human resources, organisational development, corporate strategy planning and performance reporting.

Zemeel has a Masters Degree in Business (HRM) and a passion for people and leading culture change. She also enjoys contributing to any community where she lives as an active volunteer and fundraiser for charities. ●

Ms Jenni Smithexecutive Director, continuing care and Ambulatory services/ chief Allied Health officerB App Sci (Physio), Grad Dip Physiotherapy (Research)

Jenni Smith commenced with Northern Health in 2002 and was appointed to the position of Executive Director of Ambulatory and Consulting Service in 2009 and Chief Allied Health Officer in 2010. She has an extensive background in the delivery of health care services in both the public and private sectors and has served on numerous industry and professional committees. This experience has included the development and implementation of sustainable quality improvement systems and appropriate clinical governance structures in health care environments.

Recent publications and presentations have included integration of interprofessional clinical practices, undergraduate clinical education, work role design/substitution and work force development. ●




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Organisational Structure


Chief Medical Officer

Executive Director Acute Health

Executive Director People and Culture

Executive Director Continuing Care and Ambulatory Services

Executive Director Performance Improvement

Executive Director

Corporate and Commercial

Services

Executive Director Finance

Chief Executive Officer Chief Allied

Health Officer

Chief Nursing Officer

Program Director Medicine

Clinical Program Director Medicine

Clinical Program Director

Emergency Services

Director Environmental

Support Services

Director ICT

Director Decision Support

Director Engagement

Communication and

Fundraising

Director learning and Organisational

Capability

Director Employment

and Workforce Sustainability

Program Director

Emergency Services/ TNH DON

Program Director Surgery

Clinical Program Director Surgery

Director Education and Research

Director Quality, Safety and Clinical

Governance

Director Risk Management

Director Capital Planning and Development

Director Financial Management

Director Patient Experience

and Consumer Participation

Director Engineering

Director Client Data Management

Diagnostic Services

- Radiology - Pathology

Director Organisational Redesign and Performance Excellence

Director legal Governance

Director Clinical Practice

Improvement

Director Planning

Director Management Accounting

Program Director

Women’s and Children’s Services

Clinical Program Director Women’s

and Children’s Services

Program Director Continuing

Care

Program Director Ambulatory and

Community

Clinical Program

Director Ambulatory and Community

Care

Program Director Allied Health

Director Partnerships

Associate Professor/Clinical Program Director

Continuing Care


Northern Health is the key provider of public health care in Melbourne’s northern region,

one of the fastest growing communities in Australia. Our acute and sub-acute health services cover a local community of approximately 590,000 people, and we offer a range of in-patient and out-patient services to people at all stages of life across our five campuses; The Northern Hospital, Broadmeadows Health Service, Bundoora Extended Care Centre, Craigieburn Health Service and Panch Health Service.

Northern Health treats patients from many different socio-economic backgrounds who are born in more than 130 different countries and speak 118 different languages. The breadth of complex disease in the

community is significant, and residents in Melbourne’s outer north-west have generally poor health status, with higher than average obesity levels, more Type 2 diabetes diagnosed, higher rates of smoking and drug-related issues and significantly higher rates of domestic violence.

The northern community is located in one of Melbourne’s most significant growth corridors and our local population is expected to grow by 64 per cent by 2031. Our catchment includes the rapidly expanding local government areas of Banyule, Darebin, Hume, Nillumbik, Whittlesea and Moreland.

Our busy Emergency Department treats 77,380 patients each year, including

40 paediatric presentations and 60 ambulance arrivals each and every day. Our passionate and dedicated staff assist with over 66 births each week, and a record 3,420 babies were born at The Northern Hospital over the past 12 months. More than 3,900 outpatient appointments are provided and we perform around 278 elective procedures and around 115 emergency operations each week.

Northern Health is working hard to fulfil our vision to provide outstanding health care for our community and will continue to develop services and the pathways to services that our community needs to ensure that our patients have access to the right care, at the right time, by highly skilled health professionals.

Our Services



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Intensive Care, High Dependencyand Coronary Care

Finance and Corporate Services

Specialist Medicine,Specialist Surgery and Emergency

Obstetrics, Gynaecology and Neonatology

Aged Care, Rehabilitation and Palliative Care

Day Surgery and Day Medical

Paediatric Medicine and Surgery

Business Performance, Planning and Workforce

General Medicine andGeneral Surgery

Geriatric Evaluation and Management

Medicine and Continuing Care

Surgery, Obstetrics and Paediatrics

Admitted Patients and Emergency $304m

777BEDS

9OPERATING THEATRES

3ENDOSCOPY

SUITES




Ambulatory andConsultingServices

Outpatients andAmbulatory$78m

Volunteers and Chronic Wound Service

Finance and Corporate Services

Diabetes Services and Hand Therapy

Community Services, Orthotics and Podiatry

Specialist Consulting Rooms

Day Activity Centre, Physiotherapy and Speech Therapy

Psychology, Neuropsychologyand Occupational Therapy

Music Therapy, Adult Rehabilitation and Social Work

Business Performance, Planning and Workforce

Community Therapy Services

Hospital Admission Risk Program (HARP) Services and Planned Activity Group



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FinanceServices

CorporateServices

Other Services $33m

Capital Programs

DepreciationSpecial Purpose Funds

Retail Services



Priority One

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Our AchievementsPROVIDE A BAlANCED MIX OF QUAlITY SERVICES

At Northern Health we strive to deliver high quality health services that ensure the very

best outcomes for our patients. As our services continue to grow to accommodate increased demand from our community, we carefully monitor and assess our programs in order to increase the efficiency of our services and reduce clinical risk.

PATIENT EXPERIENCE CHAMPION PROGRAM

The Patient Experience Champion Program was created to provide support in building patient experience and co-design methods for senior Northern Health staff. The six-month program started in October 2014 and was conducted in partnership with Dr lynne Maher, Director of Innovation, KoAwatea, New Zealand, with 20 staff champions nominated to participate.

The core priorities for the organisation were identified as Maternity, Outpatients, Continuing Care and the Emergency Department. Four projects were initiated to improve the patient experience and ensure patients are involved with improvement strategies and re-design.

The core principles of the program included:

• Achieving an effective and rewarding partnership between patients staff and carers

• A focus on partnership building capability for improvement and engaging in capturing, understanding, improving and measuring those improvements

• An emphasis on understanding and acting upon actual experience rather than attitude or opinion

• Narrative and storytelling approach to identify ‘touch points’

• An emphasis on the co-design of services.

The projects were successfully completed and recommendations from these areas are currently being initiated. Northern Health intends to repeat the program over the coming financial year with other areas of priority that are identified as requiring enhancement, according to feedback received by patients.

IMPROVING THE PATIENT EXPERIENCE

The Northern Health Consumer Network has increased by 50 per cent over the past year following the creation and adaptation of a number of initiatives to ensure positive experiences for our Northern Health patients. These initiatives include:

• Six ‘Patient Morning Tea’ sessions with Janet Compton, Chief Executive Officer, were held for patients to meet and discuss their experiences to ensure their concerns were being addressed.

• Northern Health increased its interpreter service by 50 per cent by employing an additional 10 in-house interpreters. The increase aims to enhance our quality of service and meet the needs of our culturally diverse community.

• Our Pastoral Care services were increased by 75 per cent by engaging chaplains and volunteers of various faiths to meet the diverse needs of our patients.

• Northern Health’s Patient Experience and Consumer Advisory Committee was re-branded to increase its diversity and reflect the needs of our rapidly expanding and diverse northern community.

By putting our patients first and enhancing their experience with our services, we are building better health outcomes for our community.

SHARED VISION FOR THE NORTH

The Shared Vision for the North is a partnership of health agencies (hospital, community health and primary care), local government and state government working collaboratively across Melbourne’s northern growth corridor to deliver multi-agency interventions to improve the health and wellbeing of the northern population. Northern Health has taken the lead role in driving this work and has been instrumental in the development of the Northern Health Partnerships Framework.

Four key priority areas have been identified for the region: healthy children and families; active ageing; mental health and chronic disease. Healthy children and families is the first area of work for the partnership that is currently facilitated by a project lead based at Northern Health. Three projects spanning from pre-conception to school age are currently being developed or implemented and one project has achieved its original aim.

IMPROVING WOMEN’S AND FAMIlY SERVICES

Part of the Shared Vision for the North initiative is the development of an integrated, accessible and equitable sexual and reproductive health service in the northern region.

Partner agencies in the northern region (community health, acute health, primary care, education and health promotion) identified a gap in these services across the region, matched with a community need. A model of


Our Achievements (cont’d)

service delivery has been developed that will ensure primary care services are provided in the community, whilst more acute services are provided by the hospital – ensuring patients receive the right care, in the right place and in a timely manner.

The Department of Education is working with local schools to ensure that education regarding respectful relationships and sexual health is delivered in appropriate timeframes. Northern Health, Austin Health and Family Planning Victoria have developed a model of GP education and credentialing that will ensure capability within primary care, providing more appropriate access for patients.

IMPROVING THE ANTENATAl EXPERIENCE

New models of care were launched in Antenatal Care in January 2015 to offer increased choice to local families. The low risk model of care was expanded and offered at all sites during evenings and on weekends for families to receive quality midwifery-led antenatal care.

A collaborative model was introduced for women who have intermediate risk factors and benefit from a collaborative approach between midwifery, obstetrics and other disciplines including allied health. The high risk model was improved to ensure women with complex needs were able to receive their care from senior obstetricians.

The team developed key measures of success which included achieving a 20 minute waiting time in outpatients, ensuring all women are offered an appointment between 12-16 weeks of pregnancy and that we were meeting the needs and expectations of our families.

The results are currently:

• Waiting times reduced from an average of 115 minutes to 23 minutes

• 97 per cent of women receiving their appointment between 12-16 weeks gestation compared with 34 per cent

• 88 per cent of family’s needs and expectations are met.

This is only the start of the improvement journey for antenatal and for the rest of the maternity team. We are continuing to develop key partnerships with local GPs to increase the uptake and experience of our patients with shared maternity care. Our Koori Maternity team is also focusing on building a continuity model for our families to ensure we are meeting their needs during pregnancy and childbirth.




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Making the best use of Northern Health’s resources and infrastructure is a critical

step in our transformational journey, enabling us to meet the future demand for health care services from the fast-growing northern community.

RESEARCH AND EDUCATION CENTRE FOR MElBOURNE’S NORTH

The Northern Centre for Health Education and Research (NCHER) is a partnership between Northern Health, the University of Melbourne, la Trobe University and the State and Commonwealth Governments. Completed for the start of the 2015 academic year, the NCHER will enable us to train an additional 900+ health professionals. Our aim is to build an innovative NCHER of the highest quality that will attract doctors, nurses and allied health staff who come to learn, and choose to stay within the northern community.

The NCHER will advance collaborative research with translational focused on outcomes for the northern community. The research that will be undertaken at the NCHER facilities will bring lasting benefits to the northern community, as medical conditions directly affecting the local population are investigated and addressed by researchers working locally.

MEETING OUR STAFF’S TECHNOlOGY NEEDS

The development of FollowME Desktop by Northern Health has been an outstanding success as it represents both a staff-led change in the way employees’ access systems and the performance of our desktop computers. The project also provides staff with

more Information and Communication Technology (ICT) services suited to the needs of their role.

FollowME Desktop allows staff to access work information and applications from any device at all Northern Health campuses and remotely, with internet access. Since January, 1500 Northern Health staff members actively use FollowME Desktop on a daily basis, including clinicians, administrative and executive staff. Through FollowME Desktop, Northern Health is able to continue to make ICT systems more efficient and keep pace with developments in technology as well as lead the Victorian health sector in the delivery of applications.

ENVIRONMENTAl PERFORMANCE

Northern Health has been actively working towards reducing the impact our activities have on the environment

since 2006 and we collaborate with both internal and external stakeholders to achieve this. In the past 12 months we have engaged over 450 staff members, local school children, not for profit organisations and service providers in the conversation about the interactions between the environment and public health. We collaborate with environmental sustainability experts in health care at the state, national and international levels to identify and achieve best practice.

We have diverted from landfill over 1300 tonnes of recyclable materials since 2010-11 and each year the recycling rate has increased. Our waste management practices are continuing to evolve to both reduce waste generated and capture additional recycling streams. These leadership and waste management practices contribute to public health by ensuring our community has a healthy environment in which to survive and thrive.

Priority TwoOur AchievementsFUllY UTIlISE OUR RESOURCES AND DEVElOP OUR INFRASTRUCTURE



By strengthening Northern Health’s organisational capability, we enhance our

ability to provide outstanding health care for our community. Delivering sound financial performance, becoming a leader in clinical research and education, growing our partnerships and engaging our community all contribute to improved health outcomes in the north.

ACHIEVING ACCREDITATION TO MAINTAIN HIGH QUAlITY OF CARENorthern Health achieved successful Accreditation in July 2014 after meeting the 10 National Safety and Quality Health Service (NSQHS) Standards. Northern Health was required to meet 209 core actions as part of the assessment, with a number of requirements awarded the highest ‘Met with Merit’ status. The status recognises evidence of good quality and a higher level of achievement in addition to meeting the required actions.

The NSQHS Standards provide a nationally consistent statement of the level of care consumers should be able to expect from health service

organisations. The independent survey, conducted by the Australian Council on Healthcare Standards (ACHS), is a rigorous process to assess the quality and safety of our health care services. The Accreditation Survey allows health services to receive feedback against national standards, identify areas that need improvement and benchmark the improvement efforts.

The survey team was particularly impressed with Northern Health’s manner in responding to a diverse community along with the medical staff who were commended for their positive contributions to the implementation of the NSQHS Standards working groups. The excellent results are a reflection of both the high standard of care and safety Northern Health offers across our sites and services and will continue to strive to provide outstanding health care to our community. Northern Health’s successful Accreditation is valid until July 2017.

THE KIlMORE AND DISTRICT HOSPITAl PARTNERSHIPNorthern Health and Kilmore and District Hospital are working in partnership to better meet the needs of the growing northern community. The shared partnership drivers (shared

catchment, demand and capacity) and purpose have been documented in a partnership agreement, signed by both Boards. This agreement is the first of its kind developed and signed at Northern Health. Three key priority areas were identified (Oncology, Continuing Care and Surgery) for the partnership, and are overseen by the partnership governance group. Reference groups are operationalising each priority area. A Model of Care for the ten Geriatric Evaluation and Management (GEM) beds due to open at The Kilmore and District Hospital on 6 July has been documented and ensures an innovative approach to delivering GEM services to the Kilmore community, closer to home.

A project officer has started planning and implementation work for a model of care to meet the community’s needs for Day Oncology services at The Kilmore and District Hospital. The work is supported by a jointly developed communication strategy that engages consumers and locally practicing health professionals. The process used in our partnership with The Kilmore and District Hospital has provided a lot of learning for Northern Health and allows us to improve our approach with future partners.

Priority ThreeOur AchievementsSTRENGTHEN ORGANISATIONAl CAPABIlITY



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Developing, attracting and retaining a high-performing workforce is integral to Northern

Health’s ability to meet the rising demand for health services in our rapidly expanding community. As the demand for health services grows, so too does the need for innovative and flexible workforce models and our work continues to build staff capability and help us become an employer of choice with a values-driven culture.

POSITIVE FEEDBACK FOR CARE

Northern Health received 829 reports of positive feedback relating to patient experiences during January to December 2014. More than 50 compliments about our services and staff were received each month by the organisation, with the highest amounts received in February and March with 92 and 94 respectively.

Northern Health’s Short Stay Unit received121 compliments, the highest amount received by a department over the 12 month period, which is mainly attributed to high turnover of patients compared to other wards. The Palliative Care Unit received the second highest with 91 compliments, given the intimate care provided to families during an emotional time.

The positive feedback continues to encourage our staff to remain passionate, dedicated, progressive and collaborative in providing residents in Melbourne’s north with outstanding health care. Patient feedback is also an opportunity for the community to thank and acknowledge staff for their efforts in providing quality care. Northern Health obtained the feedback from its Patient Experience Team, which was created in 2014 and is dedicated to collating patient experience data.

REDESIGNING FOR EXCEllENCENorthern Health and Toyota Motor Corporation Australia (TMCA) commenced a partnership in July 2014, to help make our patient journey safer and smoother, and also build culture and problem solving capability for our staff. TMCA has committed to assisting with two major redesign projects as well as supporting the development of the Northern Health Thinking Way and dojo development.

So far TMCA and Northern Health have successfully achieved;

• The successful implementation of the observation machine project in Unit D.

• The implementation of the discharge project in Unit D. There are plans to roll this across all medical units.

• The development of the Northern Health dojo (A dojo is a place of enlightenment and learning). This is founded on the Toyota Production System principles and is based on a day procedure unit scenario.

• Development of the Northern Health thinking way, which drives the Hoshin development. This has now been deployed at the executive director level.

PEOPlE PlAN “OUR VISION. OUR VOICE. OUR PlAN”The Northern Health 2015-2017 People Plan provides the organisation with an overarching vision and mission for our people and a set of guiding principles that drive and guide all human resource activity in the organisation. It also provides a definitive statement of how people

are valued. The four principles will provide the organisation with a statement of operational mission, a service commitment to the rest of the organisation and serve as marker points for our ongoing program of work to be delivered in three phases. The People Plan sets the direction for a series of additional action plans that provide both short and medium term agendas for change and improvement.

REAlIGNMENT OF THE PEOPlE AND CUlTURE STRUCTUREThe People and Culture realignment included a new structure and business partnership service delivery model to ensure we have the right people in the right positions with the right leadership capabilities. The People and Culture realignment was based on ‘our strategy to build our structure’.

The realignment was committed to retaining and growing our people from within the organisation with minimal staff impact. This initiative aimed to maximum internal growth and career opportunities for our existing staff members.

The restructured directorate of people and culture now includes; learning and Organisational Capability, Employment & Workforce Sustainability, Education and Research (NCHER) and Engagement, Communication and Fundraising.

A programmed approach was employed to deliver on services, education and research, while maintaining brand and reputation now and into the future.

Priority FourOur AchievementsATTRACT AND DEVElOP A HIGH-PERFORMING WORKFORCE



Our Achievements (cont’d)

Standing Direction 4.5.5 - Risk management framework and processes

I, Robert Burnham, certify that Northern Health has complied with the Ministerial Standing Direction 4.5.5 – Risk Management Framework and Processes. The Northern Health Audit Committee verifies this.

Mr Robert BurnhamAccountable OfficerNorthern Health13 August 20154



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Statement of Priorities

To build on the current end of life care organisational policy by developing and implementing a strategy to monitor, track and improve patient and carer experience of care.

Through the redesign program, review the role of Northern Health campuses to improve the patient journey across acute, sub-acute and into ambulatory services.

Use patient surveys to shape the clinical services plan and incorporate the consumer experience into clinical redesign by gauging community expectations for clinical services.

Priority Action Deliverable Status

Developing asystem that isresponsive topeople’s needs

Improving everyVictorian’s healthstatus andexperiences

Develop an organisational policy for the provision of safe, high quality end of life care in acute and subacute settings, with clear guidance about the role of, and access to, specialist palliative care.

Configure and distribute services to address the health needs of the local population.

Use consumer feedback to improve person and family centred care, health service practice and patient experience.

In-progress.Northern Health has a strategy in place aligned with the recommendations from the VAGO 2015 Palliative Care Review that has demonstrably increased palliative care activity in 2014-15. This strategy will continue to be developed and refined over the coming year.

In-progress.Northern Health successfully delivered its Role of Campus Strategy in 2014-15. This involved a number of elements including the provision of surgical services at the Broadmeadows Health Service, increasing surgery activity at Kilmore Health Service and locating sub-acute services closer to where patients live such as through the GEM@home initiative.

Northern Health will continue to review and develop this strategic approach in 2015-16.

Complete.Northern Health uses various methods of patient experience data collection to comprehensively understand the patient experience.

All quality improvement and redesign activities utilise a co-design methodology to ensure systems and improvement solutions are designed by consumers who use our services.

Consumers who provide feedback through the complaints process are recruited and engaged to design the solution. In addition, the Patient Experience Champion program has enhanced staff capability in co-design methodology and service improvement initiatives.

The Victorian Government’s priorities and policy directions are outlined in the Victorian Health Priorities Framework 2012–2022.

The schedule below shows Northern Health’s contribution to these priorities in 2014-15.



Statement of Priorities (cont’d)

To integrate the risk management system with the strategic plan operational and redesign plan.

To build organisational capacity to embed redesign as an improvement methodology through the implementation of the Northern Health redesign program.

Working with local partners to develop ‘North facing health service’ to improvepopulation health by:- working on a safe families and

children project- implement a strategic

partnership with Kilmore District Hospital to help manage patient flow and clinical services.

Implement a comprehensive program to improve compliance with immunisation obligations.

To enhance collaboration and training through new partnership models with University of Melbourne and la Trobe University.


Expandingservice,workforce andsystem capacity

Apply existing capability frameworks and clinical guidelines to inform service system planning.

Support local implementation of the Victorian Health and Wellbeing Plan 2011-2015 through collaboration with key partners such as local government, Medicare locals, community health services and other agencies.

Develop and implement a workforce immunisation plan that includes pre-employment screening and immunisation assessment for existing staff that work in high risk areas in order to align with Australian infection control and immunisation guidelines.

Support excellence in clinical training through productive engagement in clinical training networks and developing health education partnerships across the continuum of learning.

Complete.Northern Health’s Strategic Plan and Operational Business Plan have been developed in conjunction with a review of the risk profile for our refreshed business objectives for 2015-18. This process occurs annually as part of the risk management and planning frameworks. Complete.Northern Health has embedded a redesign improvement methodology throughout the health service. Key areas of success include the establishment of a dedicated ‘Dojo’ to instruct Northern Health employees in redesign principles and approaches and the inclusion of redesign in the orientation and professional development programs for staff. Complete.Northern Health has implemented its partnership strategy and is now actively working with community partners to support local service delivery.

Complete.Northern Health implemented a comprehensive program led by the Program Director for Medicine involving proactive promotion and performance monitoring and reporting to achieve the target staff immunisation level of 75 per cent.

Complete.Northern Health expanded clinical training networks and partnerships through student intakes and academic partnerships associated with the Northern Centre for Health, Education and Research.



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To implement a workforce plan that allows for the implementation of strategies to optimise clinical scope of practice.

To implement a capability framework that ensures appropriate clinical practice and leadership across Northern Health.

To implement financial sustainabilityinitiatives 2014-15.

Work with our community partners to implement agreed redesign and system thinking projects across the continuum of care.

To review and update the Northern Health Clinical Services Plan.


Increasing thesystem’s financialsustainability and productivity

Implementingcontinuous improvements and innovation

Optimise workforce productivity through identification and implementation of workforce models that enhance individual and team capacity and support flexibility.

Build workforce capability and sustainability by supporting formal and informal clinical education and training for staff and health students, in particular inter-professional learning.

Reduce health serviceadministrative costs.

Develop a focus on ‘system thinking’ to drive improved integration and networking across health care settings.

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

Complete.Northern Health has developed and implemented a work place that supports active nurse pools that appropriately allocate staff with the right skills and clinical scope of practice to work in the right locations at the right time.

In-progress.Northern Health has developed the Northern Health Education and Research Plan as well as a learning and organisational capability framework which incorporates clinical, leadership and learning as part of an integrated inter-professional learning model.

Partially complete.Northern Health has incorporated the learnings from the 2014-15 Financial Sustainability Plan in developing a comprehensive and achievable set of financial sustainability initiatives for 2015-16. In addition, we are implementing a range of enhancements to our budgeting and financial performance reporting in response to an Internal Audit on our EFT Data Integrity, Monitoring and Reporting.

Complete.Redesign and a systems-based approach to performance improvement are now embedded elements in the partnerships methodology that Northern Health has developed with its partners.

In-progress.In partnership with DHHS, the Clinical Services Plan (CSP) ‘Refresh’ project is now complete. The CSP has been endorsed by Northern Health Board.



Statement of Priorities (cont’d)

To undertake an annual board self-assessment.

To undertake a strategic review of residential aged care services.

To implement the ICT vision across Northern Health.


Increasingaccountability and transparency

Improvingutilisation of e-healthand communications technology

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

Demonstrate a strategic focus and commitment to aged care by responding to community needs as well as the Commonwealth living longer living Better reforms.

Ensure local Information and Communication Technology (ICT) strategic plans are in place.

In-progress.Northern Health is implementing a comprehensive Board Charter and Corporate Governance Framework which will support Board members to identify and develop their skill capability development needs that emerge through the annual board self-assessment. The Corporate Governance Framework includes a number of specific actions concerning the skill development of Directors.

In-progress.Northern Health has undertaken a review of its residential aged care services and is now developing a strategy to guide future service delivery in this area.

In-progress.Northern Health developed a comprehensive 2015-20 ICT Plan and is now idelivering on the initial foundation elements of this plan which is self-funded.

The foundation elements include the ‘Follow-me-Desktop’Project and improved remote access which are now almost complete.

Northern Health has also provided a funding submission to the Department of Health and Human Services to assist with the patient portal roll-out, which is the next phase of the ICT Plan.


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Performance PrioritiesSAFETY AND QUAlITY PERFORMANCE

Key Performance Indicator Target 2014-15 actuals

Patient experience and outcomes

Victorian Healthcare Experience Survey (1) Full compliance Full compliance

Healthcare associated infection surveillance No outliers No outliers

ICU central line associated blood stream infections (ICU ClABSI) No outliers No outliers

SAB rate per occupied bed days (2) < 2/10,000 0.4/10,000

Maternity - Percentage of women with prearranged postnatal home care 100 100

Governance, leadership and culture

Patient safety culture 80 N/A*

Safety and quality

Health service accreditation Full compliance Full compliance

Residential aged care accreditation Full compliance Full compliance

Cleaning standards Full compliance Full Compliance

Hand hygiene (rate) – quarter 2 75 76.5%

Hand hygiene (rate) – quarter 3 77 83.4

Hand hygiene (rate) – quarter 4 80 83.3

Healthcare worker immunisation - influenza 75 56.9%**

(1) The Victorian Healthcare Experience Survey (VHES) was formerly known as the Victorian Health Experience Measurement Instrument (VHEMI).

(2) SAB is staphylococcus aureus bacteraemia.

* Patient Safety Culture data is not available in 2014-15. Survey results are being finalised post end of 2014-15 financial year and will be included in 2015-16 reporting

* * Relates to 2014 calendar year

FINANCIAl SUSTAINABIlITY PERFORMANCE


Finance

Annual Operating result ($m) 1.0 -9.0

Creditors <60 days 57 days

Debtors <60 days 56 days

Percentage of WlES (public and private) performance to target 100 101.1%

Asset management

Basic asset management plan Full compliance Full compliance



Performance Priorities (cont’d)

ACCESS PERFORMANCE


Emergency Care

Percentage of operating time on hospital bypass 3 2.30%

Percentage of ambulance transfers within 40 minutes 90 77%

Percentage of Triage Category 1 emergency patients seen immediately 100 100%

Percentage of Triage Category 1 to 5 emergency patients seen within clinically recommended times 80 60.45%

NEAT - Percentage of emergency presentations to physically leave the emergency department for admission to hospital, be referred to another hospital for treatment, or be discharged within four hours 81 49.54%

Number of patients with a length of stay in the emergency department greater than 24 hours 0 0

Elective Surgery

NEST - Percentage of Urgency Category 1 elective patients treated within 30 days 100 100%

NEST - Percentage of Urgency Category 2 elective surgery patients treated within 90 days 88 62.6%

NEST - Percentage of Urgency Category 3 elective surgery patients treated within 365 days 97 93.2%

Number of patients on the elective surgery waiting list (1) 1,538 2,592

Number of Hospital Initiated Postponements (HiPs) per 100 scheduled admissions 8 5.7

Number of patients admitted from the elective surgery waiting list – quarter 1 1,916 1,937




Number of patients admitted from the elective surgery waiting list – annual total 8,356 7,450

Critical Care

Adult ICU number of days below the agreed minimum operating capacity (2) 0 2

(1) The target shown is the number of patients on the elective surgery waiting list as at 30 June 2015.

(2)The agreed minimum operating capacity is 7 ICU equivalents.



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Funding type 2014-15 Activity Achievement

Acute Admitted

WIES Public 40,569

WIES Private 4,544

WIES (Public and Private) 45,112

WIES DVA 423

WIES TAC 210

WIES TOTAl 45,745

Acute non-admitted

Emergency services 77,282

Specialist clinics 199,453

Radiotherapy - Other N/A

Sub-acute and Non-acute Admitted

Rehab Public 14,872

Rehab Private 4103

Rehab DVA 323

GEM Public 29,406

GEM Private 6,500

GEM DVA 1,704

Palliative Care Public 8,361

Palliative Care Private 1,790

Palliative Care DVA 251

Transition Care - Bed days 3,686

Transition Care - Home day 14,009

Sub-acute non-admitted

Health Independence Program 97,783

Health Independence Program - DVA 124

Activity and Funding



Activity and Funding (cont’d)

3Attestation on Data Integrity

I, Robert Burnham, certify that Northern Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Northern Health has critically reviewed these controls and processes during the year.

Mr Robert BurnhamAccountable OfficerNorthern Health13 August 201518 August 2014

Funding type 2014-15 Activity Achievement

Aged Care

Aged Care Assessment Service 3,883

Residential Aged Care 10,652

HACC- Northern Community Options 3,552

HACC - Planned Activity Groups (hrs) 37,983



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GENERAl INFORMATIONNorthern Health was established in July 2000 under the Health Services (Governance and Accountability) Act 2004 and under the auspices of the Minister for Health.

It provides a wide range of health care services to a catchment of approximately 590,000 people living in Melbourne’s middle to outer northern suburbs and the semi-rural regions beyond the urban fringe.

Northern Health comprises: • Broadmeadows Health Service • Bundoora Extended Care Centre • Craigieburn Health Service • Panch Health Service • The Northern Hospital

CONSUlTANCIES

Corporate Information

Purpose of TotalConsultant consultancy Period project fee Consulting Commitments

Consultancy fees greater than $10,000 in individual amount

In 2014-15 Northern Health engaged five consultancies with an individual amount greater than $10,000. This is detailed below.

WATERMAN Engineering review July 2014 to $174,850 $110,783 $64,067 AHW VIC of Northern Health October 2015 PTY lTD infrastructure

MIDNIGHTSKY Communication July 2014 to $129,950 $129,950 - PTY lTD campaign strategy June 2015 design and execution

KPMG Business case to February 2015 to $71,982 $47,988 $23,994 Department of August 2015 Health for ICT Funding

INSIDE HEAlTH Clinical service plan November 2014 to $39,750 $39,750 - MANAGEMENT January 2014

WJ MAlKIEWICZ Governance Review August 2014 $15,000 $15,000 - & PA ROBERTSON

$343,471

Amounts below $10,000

In 2014-15 Northern Health engaged 14 consultancies with an individual amount less than $10,000. The total value of these consultancies was $49,015 (excl. GST).



Corporate Information (cont’d)

OCCUPATIONAl HEAlTH AND SAFETY ClAIMS

2014-15: 30

2013-14: 31

2012-13: 21

2011-12: 25

2010-11: 26

2009-10: 16

2008-09: 9

These are standard Workcover claims, which are defined as those claims that are over the statutory employer excess and reported to the Victorian WorkCover Authority during the financial year.

BUIlDING ACT 1993During the financial year, it has been Northern Health’s practice to obtain building permits for new projects, and Certificates of Occupancy or Certificates of Final Inspection for all completed projects.

Registered Building Practitioners have been involved with all new building work projects and were supervised by Northern Health’s Director of Capital Planning and Development.

Completed and operational as at 30 June 2015:

• Northern Health Teaching, Training and Research Precinct project (Northern Centre for Health Education and Research)

• The Northern Hospital Fire and Cold Water Infrastructure Upgrade project

Current projects under construction:

• Stage 1 - Northern Health Acute Inpatient Unit Tower Block project

• The Northern Hospital Generator Replacement project

• level 3 Northern Centre for Health Education and Research (NCHER) Centre of learning fit-out

Current projects in design phase:

• There are no projects currently in design phase.

NATIONAl COMPETITION POlICYServices that are regularly market tested in accordance with the State Government’s Competitive Neutrality Guidelines include:

• Patient Transport

• Waste Management

• Car Parking

• Fleet Management

• Supply

• Medical Imaging/Radiology

• Pathology

• Food Service

• Biomedical Engineering

• Cleaning Services

• laundry

• Security

• Retail Services

• Financial Services

• Information and Communications Technology

• Clinical Services

• Building and Engineering Services

• Community Services

• Electricity

• Gas Supply

• Telecommunications

• Pharmaceutical Products.

Market testing of services will continue as scheduled, and according to the contract cycle, into the 2015-16 financial year.

FREEDOM OF INFORMATION

844 Freedom of Information applications were received by Northern Health during the 2014-15 financial year. All applications were processed according to the provisions of the Freedom of Information Act 1982, which provides a legally enforceable right of access to information held by government agencies.

All Northern Health campuses provide a report on these requests to the Victorian Department of Justice.

The applications were processed as follows:

844 - applications received

675 - granted in full

40 - granted in part

5 - denied

18 - withdrawn

92 - not finalised

14 - No document (patient did not attend organisation for requested dates).

OTHER INFORMATION

Information required in accordance with FRD22F of the Financial Management Act 1994 has been prepared and is available to the relevant Minister, Members of Parliament and the public on request.

ENVIRONMENTAl PERFORMANCE

The Northern Health Environmental Performance Report 2010-15 informs stakeholders of how the health service is managing current and future environmental opportunities and risks. This report is prepared in accordance with the requirements under the 2014-15 Policy and Funding Guidelines.

VICTORIAN INDUSTRY PARTICIPATION POlICY

Northern Health complies with the intent of the Victorian Industry Participation Policy (VIPP) Act (Vic) 2003 which is to encourage, where possible, local industry participation in the supply of goods and services to government agencies.

MERIT AND EQUITY PRINCIPlES

Merit and equity principles are encompassed in all employment and diversity management activities throughout Northern Health.



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CARERS AND CARE RElATIONSHIPS

Northern Health is dedicated to providing the highest quality of care in the safest possible environment for every patient.

Northern Health complies with the intent of the Carers Recognition Act 2012 which seeks to: recognise, promote and value the role of people in care relationships; recognise the different needs of persons in care relationships; and support and

recognise that care relationships bring benefits to the persons in the care relationship and to the community.

Our Quality of Care report, which will be released late this year, provides details on our services and the changes we are making to improve care and patient outcomes.

PROTECTED DISClOSURE ACT 2012

Under the Protected Disclosure Act 2012, complaints about certain serious

misconduct or corruption involving public health services in Victoria should be made directly to the Independent Broad-based Anti-corruption Commission (IBAC) in order to remain protected under the Act. Northern Health encourages individuals to make any disclosures which are protected disclosures within the meaning of the Act with IBAC.

WORKFORCE INFORMATIONThe Full Time Equivalent (FTE) head count for Northern Health as at 30 June 2014 and 30 June 2015 is provided below. Labour Category June June June Current Month FTE* YTD FTE* Headcount

2014 2015 2014 2015 2014 2015

Grand Total 2,489 2,594 2,416 2,525 3,472 3,521

Nursing Services 1,152 1,219 1,117 1,175 1,647 1,701

Administration and Clerical 403 447 399 416 543 588

Medical Support Services 166 159 165 163 206 195

Hotel and Allied Services 135 137 124 138 185 178

Medical Officers 52 55 50 54 60 62

Hospital Medical Officers 243 241 237 244 276 267

Sessional Medical Officers 62 66 60 62 194 189

Ancillary Support Services 275 270 264 273 361 341

*FTE excludes Overtime and Agency, data displayed for IPR level cost centres only

FINANCIAl RESUlTSThe financial results for Northern Health over the past five financial years are shown below.

Report of Operations Disclosure 2015 2014 2013 2012 2011 000’s 000’s 000’s 000’s 000’s

Total Revenue 397,018 394,159 365,661 339,355 316,760

Total Expenses 415,735 386,371 357,526 350,855 327,273

Net Result (Including Capital and Specific Items) (18,717) 7,788 8,135 (11,500) (10,513)

Accumulated Deficits (53,350) (41,073) (48,432) (51,268) (39,719)

Total Assets 416,797 431,863 316,931 310,404 298,404

Total liabilities 107,572 103,922 87,727 89,335 70,599

Net Assets 309,225 327,941 229,204 221,069 227,805

Total Equity 309,225 327,941 229,204 221,069 227,805



Disclosure InformationThe Annual Report of Northern 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.

MINISTERIAl DIRECTIONS

REPORT OF OPERATIONS

Legislation Requirement Page Ref

CHARTER AND PURPOSE

FRD 22F Manner of establishment and the relevant Ministers A37

FRD 22F Purpose, functions, powers and duties A9 - A11

FRD 22F Initiatives and key achievements A21 - A26

FRD 22F Nature and range of services provided A16 - A19

MANAGEMENT AND STRUCTURE

FRD 22F Organisational structure A15

FINANCIAl AND OTHER INFORMATION

FRD 10 Disclosure index A40 - A41

FRD 11A Disclosure of ex gratia expenses F55

FRD 12A Disclosure of major contracts F50 - F51

FRD 21B Responsible person and executive officer disclosures A3 & F1

FRD 22F Application and operation of Protected Disclosure 2012 A39

FRD 22F Application and operation of Carers Recognition Act 2012 A39

FRD 22F Application and operation of Freedom of Information Act 1982 A38

FRD 22F Compliance with building and maintenance provisions of Building Act 1993 A38

FRD 22F Details of consultancies over $10,000 A37

FRD 22F Details of consultancies under $10,000 A37

FRD 22F Employment and conduct principles A25

FRD 22F Major changes or factors affecting performance A5

FRD 22F Occupational health and safety A38

FRD 22F Operational and budgetary objectives and performance against objectives A29 - A36

FRD 24C Reporting of office-based environmental impacts A38

FRD 22F Significant changes in financial position during the year A39

FRD 22F Statement on National Competition Policy A38

FRD 22F Subsequent events F55

FRD 22F Summary of the financial results for the year A33 & A39

FRD 22F Workforce Data Disclosures including a statement on the application of employment and conduct principles A25 & A39



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Legislation Requirement Page Ref

FINANCIAl STATEMENTS Financial statements required under Part 7 of the FMA

SD 4.2(a) Statement of changes in equity F4

SD 4.2(b) Comprehensive operating statement F2

SD 4.2(b) Balance sheet F3

SD 4.2(b) Cash flow statement F5

OTHER REQUIREMENTS UNDER STANDING DIRECTIONS 4.2

SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements F6

SD 4.2(c) Accountable officer’s declaration F1

SD 4.2(c) Compliance with Ministerial Directions F6

SD 4.2(d) Rounding of amounts F8

lEGISlATION

Freedom of Information Act 1982 A38

Protected Disclosure Act 2012 A39

Carers Recognition Act 2012 A39

Victorian Industry Participation Policy Act 2003 A38

Building Act 1993 A38

Financial Management Act 1994 A38

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vel 2

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alua

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nput

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vel 3

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hniq

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ch t

he lo

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nput

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nobs

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um

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t A

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estim

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n an

ong

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is.

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o ac

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re r

ecog

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per

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rev

ised

if t

he r

evis

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affe

cts

only

tha

t pe

riod

or

in t

he p

erio

d of

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rev

isio

n, a

nd f

utur

e pe

riod

s if

the

revi

sion

aff

ects

bot

h cu

rren

t an

d fu

ture

per

iods

. Ju

dgem

ents

and

ass

umpt

ions

mad

e by

man

agem

ent

in t

he a

pplic

atio

n of

AASs

that

hav

e si

gnifi

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tem

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sk o

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ater

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djus

tmen

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late

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ac

tuar

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ssum

ptio

ns f

or e

mpl

oyee

ben

efit p

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sion

s ba

sed

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kely

ten

ure

of e

xist

ing

staf

f, p

atte

rns

of le

ave

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ms,

fut

ure

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ents

and

fut

ure

disc

ount

rat

es (

refe

r to

Not

e 1(

l)).

Thes

e an

nual

fin

anci

al s

tate

men

ts r

epre

sent

the

aud

ited

gen

eral

pur

pose

fin

anci

al s

tate

men

ts f

or N

orth

ern

Hea

lth

for

the

peri

od e

ndin

g 30

Jun

e 20

15.

The

purp

ose

of t

he r

epor

t is

to

prov

ide

user

s w

ith

info

rmat

ion

abou

t th

e H

ealth

Ser

vice

s’ s

tew

ards

hip

of r

esou

rces

ent

rust

ed t

o it.

Thes

e fin

anci

al s

tate

men

ts a

re g

ener

al p

urpo

se f

inan

cial

sta

tem

ents

whi

ch h

ave

been

pre

pare

d in

acc

orda

nce

with

the

Fina

ncia

l Man

agem

ent

Act

199

4 a

nd a

pplic

able

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds

(AASs)

, w

hich

incl

ude

inte

rpre

tation

s is

sued

by

the

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds B

oard

(AASB).

The

y ar

e pr

esen

ted

in a

man

ner

cons

iste

nt w

ith

the

requ

irem

ents

of

AASB 1

01 P

rese

ntat

ion

of F

inan

cial

Sta

tem

ents

.

The

finan

cial

sta

tem

ents

als

o co

mpl

y w

ith

rele

vant

Fin

anci

al R

epor

ting

Dir

ection

s (F

RD

s) is

sued

by

the

Dep

artm

ent

of T

reas

ury

and

Fina

nce,

and

rel

evan

t Sta

ndin

g D

irec

tion

s (S

Ds)

aut

hori

sed

by t

he

Min

iste

r fo

r Fi

nanc

e.N

orth

ern

Hea

lth

is a

not

-for

pro

fit e

ntity

and

ther

efor

e ap

plie

s th

e ad

dition

al A

us p

arag

raph

s ap

plic

able

to

“not

-for

-pro

fit”

Hea

lth

Ser

vice

s un

der

the

AASs.

The

annu

al f

inan

cial

sta

tem

ents

wer

e au

thor

ised

for

issu

e by

the

Boa

rd o

f N

orth

ern

Hea

lth

on 1

3th

Aug

ust

2015

.

Acc

ount

ing

polic

ies

are

sele

cted

and

app

lied

in a

man

ner

whi

ch e

nsur

es t

hat

the

resu

ltin

g fin

anci

al in

form

atio

n sa

tisf

ies

the

conc

epts

of

rele

vanc

e an

d re

liabi

lity,

the

reby

ens

urin

g th

at t

he s

ubst

ance

of

the

unde

rlyi

ng t

rans

action

s or

oth

er e

vent

s is

rep

orte

d.

the

fai

r va

lue

of a

sset

s ot

her

than

land

is g

ener

ally

bas

ed o

n th

eir

depr

ecia

ted

repl

acem

ent

valu

e.

The

acco

unting

pol

icie

s se

t ou

t be

low

hav

e be

en a

pplie

d in

pre

pari

ng t

he f

inan

cial

sta

tem

ents

for

the

yea

r en

ded

30 J

une

2015

, an

d th

e co

mpa

rative

info

rmat

ion

pres

ente

d in

the

se f

inan

cial

sta

tem

ents

for

th

e ye

ar e

nded

30

June

201

4.Th

e go

ing

conc

ern

basi

s w

as u

sed

to p

repa

re t

he f

inan

cial

sta

tem

ents

.Th

ese

finan

cial

sta

tem

ents

are

pre

sent

ed in

Aus

tral

ian

dolla

rs,

the

func

tion

al a

nd p

rese

ntat

ion

curr

ency

of

Nor

ther

n H

ealth.

The

finan

cial

sta

tem

ents

, ex

cept

for

cas

h flo

w in

form

atio

n, h

ave

been

pre

pare

d us

ing

the

accr

ual b

asis

of

acco

unting

. U

nder

the

acc

rual

bas

is,

item

s ar

e re

cogn

ised

as

asse

ts,

liabi

litie

s, e

quity,

inco

me

or

expe

nses

whe

n th

ey s

atis

fy t

he d

efin

itio

ns a

nd r

ecog

nition

cri

teri

a fo

r th

ose

item

s, t

hat

is t

hey

are

reco

gnis

ed in

the

rep

orting

per

iod

to w

hich

the

y re

late

, re

gard

less

of

whe

n ca

sh is

rec

eive

d or

pai

d.

Judg

emen

ts,

estim

ates

and

ass

umpt

ions

are

req

uire

d to

be

mad

e ab

out

the

carr

ying

val

ues

of a

sset

s an

d lia

bilit

ies

that

are

not

rea

dily

app

aren

t fr

om o

ther

sou

rces

. Th

e es

tim

ates

and

ass

ocia

ted

assu

mpt

ions

are

bas

ed o

n pr

ofes

sion

al jud

gem

ents

der

ived

fro

m h

isto

rica

l exp

erie

nce

and

vari

ous

othe

r fa

ctor

s th

at a

re b

elie

ved

to b

e re

ason

able

und

er t

he c

ircu

mst

ance

s. A

ctua

l res

ults

may

diff

er f

rom

th

ese

estim

ates

.

non

-cur

rent

phy

sica

l ass

ets,

whi

ch s

ubse

quen

t to

acq

uisi

tion

, ar

e m

easu

red

at a

rev

alue

d am

ount

bei

ng t

heir

fai

r va

lue

at t

he d

ate

of t

he r

eval

uation

less

any

sub

sequ

ent

accu

mul

ated

dep

reci

atio

n an

d su

bseq

uent

impa

irm

ent

loss

es.

Rev

alua

tion

s ar

e m

ade

and

are

re-a

sses

sed

with

suff

icie

nt r

egul

arity

to e

nsur

e th

at t

he c

arry

ing

amou

nts

do n

ot m

ater

ially

diff

er f

rom

the

ir f

air

valu

es;

and

Con

sist

ent

with

AASB 1

3 Fa

ir V

alue

Mea

sure

men

t, N

orth

ern

Hea

lth

dete

rmin

es t

he p

olic

ies

and

proc

edur

es f

or b

oth

recu

rrin

g fa

ir v

alue

mea

sure

men

ts s

uch

as p

rope

rty,

pla

nt a

nd e

quip

men

t, a

nd f

inan

cial

in

stru

men

ts,

and

for

non-

recu

rrin

g fa

ir v

alue

mea

sure

men

ts s

uch

as n

on-f

inan

cial

phy

sica

l ass

ets

held

for

sal

e, in

acc

orda

nce

with

the

requ

irem

ents

of

AASB 1

3 an

d th

e re

leva

nt F

RD

s.

All

asse

ts a

nd li

abili

ties

for

whi

ch f

air

valu

e is

mea

sure

d or

dis

clos

ed in

the

fin

anci

al s

tate

men

ts a

re c

ateg

oris

ed w

ithi

n th

e fa

ir v

alue

hie

rarc

hy,

desc

ribe

d as

fol

low

s, b

ased

on

the

low

est

leve

l inp

ut t

hat

is

sign

ifica

nt t

o th

e fa

ir v

alue

mea

sure

men

t as

a w

hole

:

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

6 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 6

of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 7

of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s

The

Val

uer-

Gen

eral

Vic

tori

a (V

GV)

is N

orth

ern

Hea

lth’

s in

depe

nden

t va

luat

ion

agen

cy.

Nor

ther

n H

ealth,

in c

onju

nction

with

VG

V m

onitor

s th

e ch

ange

s in

the

fai

r va

lue

of e

ach

asse

t th

roug

h re

leva

nt d

ata

sour

ces

to d

eter

min

e w

heth

er r

eval

uation

is r

equi

red.

(c)

Rep

ort

ing

en

tity

The

finan

cial

sta

tem

ents

incl

ude

all t

he c

ontr

olle

d ac

tivi

ties

of

Nor

ther

n H

ealth.

It

s pr

inci

pal a

ddre

ss is

:18

5 Coo

per

Str

eet

Eppi

ngVic

tori

a 30

76.

Ob

ject

ives

an

d f

un

din

g

(d)

Pri

nci

ple

s o

f co

nso

lidat

ion

Bod

ies

cons

olid

ated

into

the

Nor

ther

n H

ealth

repo

rtin

g en

tity

incl

ude:

N

orth

ern

Hea

lth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Tr

ust

N

orth

ern

Hea

lth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Fo

unda

tion

Lim

ited

Inte

rseg

men

t Tr

ansa

ctio

ns

(e)

Sco

pe

and

pre

sen

tati

on

of

fin

anci

al s

tate

men

tsFu

nd

Acc

ou

nti

ng

Ser

vice

s S

up

po

rted

By

Hea

lth

Ser

vice

s A

gre

emen

t an

d S

ervi

ces

Su

pp

ort

ed B

y H

osp

ital

an

d C

om

mu

nit

y In

itia

tive

s

A d

escr

iption

of

the

natu

re o

f N

orth

ern

Hea

lth’

s op

erat

ions

and

its

prin

cipa

l act

ivitie

s is

incl

uded

in t

he r

epor

t of

ope

ration

s, w

hich

doe

s no

t fo

rm p

art

of t

hese

fin

anci

al s

tate

men

ts.

Nor

ther

n H

ealth’

s ov

eral

l obj

ective

is t

o pr

ovid

e ou

tsta

ndin

g he

alth

car

e to

the

com

mun

ity,

as

wel

l as

impr

ove

the

qual

ity

of li

fe f

or V

icto

rian

s.N

orth

ern

Hea

lth

is p

redo

min

antly

fund

ed b

y ac

crua

l bas

ed g

rant

fun

ding

for

the

pro

visi

on o

f ou

tput

s.

In a

dditio

n, N

orth

ern

Hea

lth

dete

rmin

es w

heth

er t

rans

fers

hav

e oc

curr

ed b

etw

een

leve

ls in

the

hie

rarc

hy b

y re

-ass

essi

ng c

ateg

oris

atio

n (b

ased

on

the

low

est

leve

l inp

ut t

hat

is s

igni

fican

t to

the

fai

r va

lue

mea

sure

men

t as

a w

hole

) at

the

end

of

each

rep

orting

per

iod.

th

e co

nsol

idat

ed f

inan

cial

sta

tem

ents

of

Nor

ther

n H

ealth

inco

rpor

ates

the

ass

ets

and

liabi

litie

s of

all

entities

con

trol

led

by N

orth

ern

Hea

lth

as a

t 30

Jun

e 20

15,

and

thei

r in

com

e an

d ex

pens

es f

or t

hat

part

of

the

repo

rtin

g pe

riod

in w

hich

con

trol

exi

sted

; an

d

Tran

sact

ions

bet

wee

n se

gmen

ts w

ithi

n th

e N

orth

ern

Hea

lth

have

bee

n el

imin

ated

to

refle

ct t

he e

xten

t of

Nor

ther

n H

ealth’

s op

erat

ions

as

a gr

oup.

Con

trol

exi

sts

whe

n N

orth

ern

Hea

lth

has

the

pow

er t

o go

vern

the

fin

anci

al a

nd o

pera

ting

pol

icie

s of

an

entity

so

as t

o ob

tain

ben

efits

from

its

activi

ties

. In

ass

essi

ng c

ontr

ol,

pote

ntia

l vot

ing

righ

ts t

hat

pres

ently

are

exer

cisa

ble

are

take

n in

to a

ccou

nt.

The

cons

olid

ated

fin

anci

al s

tate

men

ts in

clud

e th

e au

dite

d fin

anci

al s

tate

men

ts o

f th

e co

ntro

lled

entities

list

ed in

Not

e 26

.

Whe

re c

ontr

ol o

f an

ent

ity

is o

btai

ned

duri

ng t

he f

inan

cial

per

iod,

it r

esul

ts a

re in

clud

ed in

the

com

preh

ensi

ve o

pera

ting

sta

tem

ent

form

the

dat

e on

whi

ch c

ontr

ol c

omm

ence

d. W

here

con

trol

cea

ses

duri

ng

the

finan

cial

per

iod,

the

ent

ity'

s re

sults

are

incl

uded

for

tha

t pa

rt o

f th

e pe

riod

in w

hich

con

trol

exi

sted

. W

here

dis

sim

ilar

acco

unting

pol

icie

s ar

e ad

opte

d by

ent

itie

s an

d th

eir

effe

ct is

con

side

red

mat

eria

l,

adju

stm

ents

are

mad

e to

ens

ure

cons

iste

nt p

olic

ies

are

adop

ted

in t

hese

fin

anci

al s

tate

men

ts.

Nor

ther

n H

ealth

oper

ates

on

a fu

nd a

ccou

ntin

g ba

sis

and

mai

ntai

ns t

hree

fun

ds:

Ope

rating

, Spe

cific

Pur

pose

and

Cap

ital

Fun

ds.

Nor

ther

n H

ealth’

s Cap

ital

and

Spe

cific

Pur

pose

Fun

ds in

clud

e un

spen

t ca

pita

l don

atio

ns a

nd r

ecei

pts

from

fun

d-ra

isin

g ac

tivi

ties

con

duct

ed s

olel

y in

res

pect

of

thes

e fu

nds.

Act

ivitie

s cl

assi

fied

as S

ervi

ces

Sup

port

ed b

y H

ealth

Ser

vice

s Agr

eem

ent

(HSA)

are

subs

tant

ially

fun

ded

by t

he D

epar

tmen

t of

Hea

lth

and

Hum

an S

ervi

ces

and

incl

ude

Res

iden

tial

Age

d Car

e Ser

vice

s (R

ACS)

and

are

also

fun

ded

from

oth

er s

ourc

es s

uch

as t

he C

omm

onw

ealth,

pat

ient

s an

d re

side

nts,

whi

le S

ervi

ces

Sup

port

ed b

y H

ospi

tal a

nd C

omm

unity

Initia

tive

s (

H&

CI)

are

fun

ded

by t

he H

ealth

Ser

vice

's o

wn

activi

ties

or

loca

l ini

tiat

ives

and

/or

the

Com

mon

wea

lth.

In a

ccor

danc

e w

ith

AASB 1

0 Con

solid

ated

Fin

anci

al S

tate

men

ts:

Th

e co

nsol

idat

ed f

inan

cial

sta

tem

ents

exc

lude

s bo

dies

of

Nor

ther

n H

ealth

that

are

not

con

trol

led

by N

orth

ern

Hea

lth

and

ther

efor

e ar

e no

t co

nsol

idat

ed.

For

the

purp

ose

of f

air

valu

e di

sclo

sure

s, N

orth

ern

Hea

lth

has

dete

rmin

ed c

lass

es o

f as

sets

and

liab

ilities

on

the

basi

s of

the

nat

ure,

cha

ract

eris

tics

and

ris

ks o

f th

e as

set

or li

abili

ty a

nd t

he le

vel o

f th

e fa

ir

valu

e hi

erar

chy

as e

xpla

ined

abo

ve.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

7 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 8

of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sR

esid

enti

al A

ged

Car

e S

ervi

ce

Co

mp

reh

ensi

ve o

per

atin

g s

tate

men

t

Ca p

ital

and

spe

cific

item

s, w

hich

are

exc

lude

d fr

om t

his

sub-

tota

l, c

ompr

ise:

de

prec

iation

and

am

ortisa

tion

, as

des

crib

ed in

Not

e 1

(h);

Bal

ance

sh

eet

Sta

tem

ent

of

chan

ges

in e

qu

ity

Cas

h f

low

sta

tem

ent

Ro

un

din

g

Co

mp

arat

ive

Info

rmat

ion

ca

pita

l pur

pose

inco

me,

whi

ch c

ompr

ises

all

tied

gra

nts,

don

atio

ns a

nd b

eque

sts

rece

ived

for

the

pur

pose

of

acqu

irin

g no

n-cu

rren

t as

sets

, su

ch a

s ca

pita

l wor

ks,

plan

t an

d eq

uipm

ent

or in

tang

ible

as

sets

. It

als

o in

clud

es d

onat

ions

of

plan

t an

d eq

uipm

ent

(ref

er N

ote

1 (g

)).

Con

sequ

ently

the

reco

gnitio

n of

rev

enue

as

capi

tal p

urpo

se in

com

e is

bas

ed o

n th

e in

tent

ion

of t

he p

rovi

der

of t

he r

even

ue a

t th

e tim

e th

e re

venu

e is

pro

vide

d.

The

stat

emen

t of

cha

nges

in e

quity

pres

ents

rec

onci

liation

s of

eac

h no

n-ow

ner

and

owne

r ch

ange

s in

equ

ity

from

ope

ning

bal

ance

at

the

begi

nnin

g of

the

rep

orting

per

iod

to t

he c

losi

ng b

alan

ce a

t th

e en

d of

the

rep

orting

per

iod.

It

also

sho

ws

sepa

rate

ly c

hang

es d

ue t

o am

ount

s re

cogn

ised

in t

he c

ompr

ehen

sive

res

ult

and

amou

nts

reco

gnis

ed in

oth

er c

ompr

ehen

sive

inco

me.

Whe

re n

eces

sary

, th

e pr

evio

us y

ear's

figur

es h

ave

been

rec

lass

ified

to

faci

litat

e co

mpa

riso

n, r

efer

Not

e 28

for

fur

ther

det

ails

.

All

amou

nts

show

n in

the

fin

anci

al s

tate

men

ts a

re e

xpre

ssed

to

the

near

est

$1,0

00 u

nles

s ot

herw

ise

stat

ed.

im

pair

men

t of

fin

anci

al a

nd n

on-f

inan

cial

ass

ets,

incl

udes

all

impa

irm

ent

loss

es (

and

reve

rsal

of

prev

ious

impa

irm

ent

loss

es),

whi

ch h

ave

been

rec

ogni

sed

in a

ccor

danc

e w

ith

Not

es 1

(j)

;

as

sets

pro

vide

d or

rec

eive

d fr

ee o

f ch

arge

(re

fer

to N

otes

1 (

g) a

nd (

h));

and

Ass

ets

and

liabi

litie

s ar

e ca

tego

rise

d ei

ther

as

curr

ent

or n

on-c

urre

nt (

non-

curr

ent

bein

g th

ose

asse

ts o

r lia

bilit

ies

expe

cted

to

be r

ecov

ered

/set

tled

mor

e th

an 1

2 m

onth

s af

ter

repo

rtin

g pe

riod

), a

re

disc

lose

d in

the

not

es w

here

rel

evan

t.

For

the

cash

flo

w s

tate

men

t pr

esen

tation

pur

pose

s, c

ash

and

cash

equ

ival

ents

incl

udes

ban

k ov

erdr

afts

, w

hich

are

incl

uded

as

curr

ent

borr

owin

gs in

the

bal

ance

she

et.

Min

or d

iscr

epan

cies

in t

able

s be

twee

n to

tals

and

sum

of

com

pone

nts

are

due

to r

ound

ing.

The

com

preh

ensi

ve o

pera

ting

sta

tem

ent

incl

udes

the

sub

tota

l ent

itle

d ‘n

et r

esul

t be

fore

cap

ital

& s

peci

fic it

ems’

to

enha

nce

the

unde

rsta

ndin

g of

the

fin

anci

al p

erfo

rman

ce o

f N

orth

ern

Hea

lth.

Thi

s su

btot

al

repo

rts

the

resu

lt e

xclu

ding

item

s su

ch a

s ca

pita

l gra

nts,

ass

ets

rece

ived

or

prov

ided

fre

e of

cha

rge,

dep

reci

atio

n, e

xpen

ditu

re u

sing

cap

ital

pur

pose

inco

me

and

item

s of

an

unus

ual n

atur

e an

d am

ount

su

ch a

s sp

ecifi

c in

com

e an

d ex

pens

es.

The

excl

usio

n of

the

se it

ems

is m

ade

to e

nhan

ce m

atch

ing

of in

com

e an

d ex

pens

es s

o as

to

faci

litat

e th

e co

mpa

rabi

lity

and

cons

iste

ncy

of r

esul

ts b

etw

een

year

s an

d Vic

tori

an P

ublic

Hea

lth

Ser

vice

s. T

he ‘n

et r

esul

t be

fore

ca p

ital

& s

peci

fic it

ems’

is u

sed

by t

he m

anag

emen

t of

Nor

ther

n H

ealth,

the

Dep

artm

ent

of H

ealth

and

Hum

an S

ervi

ces

and

the

Vic

tori

an G

over

nmen

t to

mea

sure

the

ong

oing

ope

rating

per

form

ance

of

Hea

lth

Ser

vice

s.

The

Nor

ther

n H

ealth

Res

iden

tial

Age

d Car

e h

as a

sep

arat

e Com

mitte

e of

Man

agem

ent

and

is s

ubst

antial

ly f

unde

d fr

om C

omm

onw

ealth

bed-

day

subs

idie

s.

The

Nor

ther

n H

ealth

Res

iden

tial

Age

d Car

e Ser

vice

ope

ration

s ar

e an

inte

gral

par

t of

Nor

ther

n H

ealth

and

shar

es it

s re

sour

ces.

An

appo

rtio

nmen

t of

land

and

bui

ldin

gs h

as b

een

mad

e ba

sed

on f

loor

sp

ace.

The

res

ults

of

the

two

oper

atio

ns h

ave

been

seg

rega

ted

base

d on

act

ual r

even

ue e

arne

d an

d ex

pend

itur

e in

curr

ed b

y ea

ch o

pera

tion

in N

ote

2 to

the

fin

anci

al s

tate

men

ts.

Cas

h flo

ws

are

clas

sifie

d ac

cord

ing

to w

heth

er o

r no

t th

ey a

rise

fro

m o

pera

ting

act

ivitie

s, in

vest

ing

activi

ties

, or

fin

anci

ng a

ctiv

itie

s. T

his

clas

sific

atio

n is

con

sist

ent

with

requ

irem

ents

und

er A

ASB 1

07

Sta

tem

ent

of C

ash

Flow

s.

sp

ecifi

c in

com

e co

mpr

ises

the

fol

low

ing

item

s, w

here

mat

eria

l:

◦

Non

-cur

rent

ass

et r

eval

uation

incr

emen

ts/

decr

emen

ts

ex

pend

itur

e us

ing

capi

tal p

urpo

se in

com

e, c

ompr

ises

exp

endi

ture

whi

ch e

ithe

r fa

lls b

elow

the

ass

et c

apital

isat

ion

thre

shol

d or

doe

sn’t m

eet

asse

t re

cogn

itio

n cr

iter

ia a

nd t

here

fore

doe

s no

t re

sult in

th

e re

cogn

itio

n of

an

asse

t in

the

bal

ance

she

et,

whe

re f

undi

ng f

or t

hat

expe

nditur

e is

fro

m c

apital

pur

pose

inco

me.

The

net

resu

lt is

equ

ival

ent

to p

rofit

or

loss

der

ived

in a

ccor

danc

e w

ith

AASs.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

8 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 8

of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 9

of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s(f

)C

han

ge

in a

cco

un

tin

g p

olic

ies

AA

SB

10

Co

nso

lidat

ed f

inan

cial

sta

tem

ents

(a)T

he in

vest

or h

as p

ower

ove

r th

e in

vest

ee;

(b)T

he in

vest

or h

as e

xpos

ure,

or

righ

ts t

o va

riab

le r

etur

ns f

rom

its

invo

lvem

ent

with

the

inve

stee

; an

d (c

)Th

e in

vest

or h

as t

he a

bilit

y to

use

its

pow

er o

ver

the

inve

stee

to

affe

ct t

he a

mou

nt o

f in

vest

or’s

ret

urns

.Bas

ed o

n th

e ne

w c

rite

ria

pres

crib

ed in

AASB 1

0, N

orth

ern

Hea

lth

has

revi

ewed

the

exi

stin

g ar

rang

emen

ts t

o de

term

ine

if th

ere

are

any

addi

tion

al e

ntitie

s th

at n

eed

to b

e co

nsol

idat

ed in

to t

he g

roup

.

(g)

Inco

me

fro

m t

ran

sact

ion

s

Go

vern

men

t G

ran

ts a

nd

oth

er t

ran

sfer

s o

f in

com

e (o

ther

th

an c

on

trib

uti

on

s b

y o

wn

ers)

Ind

irec

t C

on

trib

uti

on

s fr

om

th

e D

epar

tmen

t o

f H

ealt

h a

nd

Hu

man

Ser

vice

sIn

sura

nce

is r

eco g

nise

d as

rev

enue

fol

low

ing

advi

ce f

rom

the

Dep

artm

ent

of H

ealth

and

Hum

an S

ervi

ces.

Pat

ien

t an

d R

esid

ent

Fees

Pri

vate

Pra

ctic

e Fe

es

Rev

enu

e fr

om

co

mm

erci

al a

ctiv

itie

s

Do

nat

ion

s an

d O

ther

Beq

ues

ts

Inte

rest

Rev

enu

e

Sal

e o

f in

vest

men

ts

Fair

val

ue

of

asse

ts a

nd

ser

vice

s re

ceiv

ed f

ree

of

char

ge

or

for

no

min

al c

on

sid

erat

ion

Con

trib

utio

ns a

re d

efer

red

as in

com

e in

adv

ance

whe

n N

orth

ern

Hea

lth

has

a pr

esen

t ob

ligat

ion

to r

epay

the

m a

nd t

he p

rese

nt o

blig

atio

n ca

n be

rel

iabl

y m

easu

red.

Am

ount

s di

sclo

sed

as r

even

ue a

re,

whe

re a

pplic

able

, ne

t of

ret

urns

, al

low

ance

s an

d du

ties

and

tax

es.

Sub

sequ

ent

to t

he 2

013-

14 r

epor

ting

per

iod,

the

fol

low

ing

new

and

rev

ised

Sta

ndar

ds h

ave

been

ado

pted

for

the

fir

st t

ime

in t

he c

urre

nt p

erio

d w

ith

thei

r fin

anci

al im

pact

s di

sclo

sed.

AASB 1

0 pr

ovid

es a

new

app

roac

h to

det

erm

ine

whe

ther

an

entity

has

con

trol

ove

r an

othe

r en

tity

, an

d th

eref

ore

mus

t pr

esen

t co

nsol

idat

ed f

inan

cial

sta

tem

ents

. Th

e ne

w a

ppro

ach

requ

ires

the

sat

isfa

ctio

n of

all

thre

e cr

iter

ia f

or c

ontr

ol t

o ex

ist

over

an

entity

for

fin

anci

al r

epor

ting

pur

pose

s:

No

new

ent

itie

s ha

ve b

een

cons

olid

ated

into

the

gro

up.

Inco

me

is r

ecog

nise

d in

acc

orda

nce

with

AASB 1

18 R

even

ue a

nd is

rec

ogni

sed

as t

o th

e ex

tent

tha

t it is

pro

babl

e th

at t

he e

cono

mic

ben

efits

will

flo

w t

o N

orth

ern

Hea

lth

and

the

inco

me

can

be r

elia

bly

mea

sure

d at

fai

r va

lue.

Une

arne

d in

com

e at

rep

orting

dat

e is

rep

orte

d as

inco

me

rece

ived

in a

dvan

ce.

In a

ccor

danc

e w

ith

AASB 1

004

Con

trib

utio

ns,

gove

rnm

ent

gran

ts a

nd o

ther

tra

nsfe

rs o

f in

com

e (o

ther

tha

n co

ntri

bution

s by

ow

ners

) ar

e re

cogn

ised

as

inco

me

whe

n N

orth

ern

Hea

lth

gain

s co

ntro

l of

the

unde

rlyi

ng a

sset

s ir

resp

ective

of

whe

ther

con

dition

s ar

e im

pose

d on

the

ent

itie

s us

e of

the

con

trib

utio

ns.

Long

Ser

vice

Lea

ve (

LSL)

– R

even

ue is

rec

ogni

sed

upon

fin

alis

atio

n of

mov

emen

ts in

LSL

liabi

lity

in li

ne w

ith

the

arra

ngem

ents

set

out

in t

he M

etro

polit

an H

ealth

and

Age

d Car

e Ser

vice

s D

ivis

ion

Hos

pita

l Cir

cula

r 05

/201

3.

Patien

t fe

es a

re r

eco g

nise

d as

rev

enue

at

the

tim

e in

voic

es a

re r

aise

d.

Priv

ate

prac

tice

fee

s ar

e re

cogn

ised

as

reve

nue

at t

he t

ime

invo

ices

are

rai

sed.

Rev

enue

fro

m c

omm

erci

al a

ctiv

itie

s su

ch a

s ca

r pa

rkin

g an

d re

tail

activi

ties

are

rec

ogni

sed

at t

he t

ime

invo

ices

are

rai

sed.

Don

atio

ns a

nd b

eque

sts

are

reco

gnis

ed a

s re

venu

e w

hen

rece

ived

. If

don

atio

ns a

re f

or a

spe

cial

pur

pose

, th

ey m

ay b

e ap

prop

riat

ed t

o a

surp

lus,

suc

h as

the

spe

cific

res

tric

ted

purp

ose

surp

lus.

Inte

rest

rev

enue

is r

ecog

nise

d on

a t

ime

prop

ortion

ate

basi

s th

at t

akes

in a

ccou

nt t

he e

ffec

tive

yie

ld o

f th

e fin

anci

al a

sset

, w

hich

allo

cate

s in

tere

st o

ver

the

rele

vant

per

iod.

The

gain

/los

s on

the

sal

e of

inve

stm

ents

is r

ecog

nise

d w

hen

the

inve

stm

ent

is r

ealis

ed.

Res

ourc

es r

ecei

ved

free

of

char

ge o

r fo

r no

min

al c

onsi

dera

tion

are

rec

ogni

sed

at t

heir

fai

r va

lue

whe

n th

e tr

ansf

eree

obt

ains

con

trol

ove

r th

em,

irre

spec

tive

of

whe

ther

res

tric

tion

s or

con

dition

s ar

e im

pose

d ov

er t

he u

se o

f th

e co

ntri

bution

s, u

nles

s re

ceiv

ed f

rom

ano

ther

Hea

lth

Ser

vice

or

agen

cy a

s a

cons

eque

nce

of a

res

truc

turi

ng o

f ad

min

istr

ativ

e ar

rang

emen

ts.

In

the

latt

er c

ase,

suc

h tr

ansf

er w

ill

be r

ecog

nise

d at

car

ryin

g va

lue.

Con

trib

utio

ns in

the

for

m o

f se

rvic

es a

re o

nly

reco

gnis

ed w

hen

a fa

ir v

alue

can

be

relia

bly

dete

rmin

ed a

nd t

he s

ervi

ce w

ould

hav

e be

en p

urch

ased

if n

ot r

ecei

ved

as a

do

nation

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

9 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

0 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s(h

)Ex

pen

se r

eco

gn

itio

n

Emp

loye

e ex

pen

ses

Empl

oyee

exp

ense

s in

clud

e:

wag

es a

nd s

alar

ies;

an

nual

leav

e;

si

ck le

ave;

long

ser

vice

leav

e; a

nd

supe

rann

uation

exp

ense

s w

hich

are

rep

orte

d di

ffer

ently

depe

ndin

g up

on w

heth

er e

mpl

oyee

s ar

e m

embe

rs o

f de

fined

ben

efit o

r de

fined

con

trib

utio

n pl

ans.

D

efi

ned

co

ntr

ibu

tio

n s

up

era

nn

uati

on

pla

ns

Defi

ned

ben

efi

t su

pera

nn

uati

on

pla

ns

The

nam

e an

d de

tails

of

the

maj

or e

mpl

oyee

sup

eran

nuat

ion

fund

s an

d co

ntri

bution

s m

ade

by N

orth

ern

Hea

lth

are

disc

lose

d in

Not

e 14

: Sup

eran

nuat

ion.

Dep

reci

atio

n

20

15

20

14

Bui

ldin

gs

Str

uctu

re S

hell

Bui

ldin

g Fa

bric

5 -

53 Y

ears

5 -

53 Y

ears

S

ite

Engi

neer

ing

Ser

vice

s an

d Cen

tral

Pla

nt17

- 3

3 Ye

ars

17 -

33

Year

sCen

tral

Pla

nt

Fit O

ut2

- 18

Yea

rs2

- 18

Yea

rs

Tru

nk R

etic

ulat

ed B

uild

ing

Sys

tem

s7

- 23

Yea

rs7

- 23

Yea

rsPl

ant

and

Equi

pmen

tN

/A *

1

0 Ye

ars

Med

ical

Equ

ipm

ent

7 -

10 Y

ears

1

0 Ye

ars

Com

pute

rs a

nd C

omm

unic

atio

n

3

Year

s

3

Year

sFu

rnitur

e an

d Fi

ttin

gs

10

Year

s

10

Year

sM

otor

Veh

icle

s

4

Year

s

4

Year

sN

on-M

edic

al E

quip

men

t3

- 10

Yea

rs

10

Year

s

Inta

ngib

le p

rodu

ced

asse

ts w

ith

finite

lives

are

dep

reci

ated

as

an e

xpen

se f

rom

tra

nsac

tion

s on

a s

yste

mat

ic b

asis

ove

r th

e as

set’s

usef

ul li

fe.

Dep

reci

atio

n is

gen

eral

ly c

alcu

late

d on

a s

trai

ght

line

basi

s, a

t a

rate

tha

t al

loca

tes

the

asse

t va

lue,

less

any

est

imat

ed r

esid

ual v

alue

ove

r its

estim

ated

use

ful l

ife.

Estim

ates

of

the

rem

aini

ng u

sefu

l liv

es,

resi

dual

val

ue a

nd d

epre

ciat

ion

met

hod

for

all a

sset

s ar

e re

view

ed a

t le

ast

annu

ally

, an

d ad

just

men

ts m

ade

whe

re a

ppro

pria

te.

This

dep

reci

atio

n ch

arge

is n

ot f

unde

d by

the

Dep

artm

ent

of H

ealth

and

Hum

an S

ervi

ces.

Ass

ets

with

a co

st in

exc

ess

of $

1,00

0 ar

e ca

pita

lised

and

dep

reci

atio

n ha

s be

en p

rovi

ded

on d

epre

ciab

le a

sset

s so

as

to a

lloca

te t

heir

cos

t or

val

uation

ove

r th

eir

estim

ated

use

ful l

ives

.

The

follo

win

g ta

ble

indi

cate

s th

e ex

pect

ed u

sefu

l liv

es o

f no

n cu

rren

t as

sets

on

whi

ch t

he d

epre

ciat

ion

char

ges

are

base

d.

Empl

oyee

s of

Nor

ther

n H

ealth

are

entitled

to

rece

ive

supe

rann

uation

ben

efits

and

the

Nor

ther

n H

ealth

cont

ribu

tes

to b

oth

the

defin

ed b

enef

it a

nd d

efin

ed c

ontr

ibut

ion

plan

s.

The

defin

ed b

enef

it p

lan(

s)

prov

ide

bene

fits

base

d on

yea

rs o

f se

rvic

e an

d fin

al a

vera

ge s

alar

y.

Expe

nses

are

rec

ogni

sed

as t

hey

are

incu

rred

and

rep

orte

d in

the

fin

anci

al y

ear

to w

hich

the

y re

late

.

In r

elat

ion

to d

efin

ed c

ontr

ibut

ion

(i.e

. ac

cum

ulat

ion)

sup

eran

nuat

ion

plan

s, t

he a

ssoc

iate

d ex

pens

e is

sim

ply

the

empl

oyer

con

trib

utio

ns t

hat

are

paid

or

paya

ble

in r

espe

ct o

f em

ploy

ees

who

are

mem

bers

of

the

se p

lans

dur

ing

the

repo

rtin

g pe

riod

. Con

trib

utio

ns t

o de

fined

con

trib

utio

n su

pera

nnua

tion

pla

ns a

re e

xpen

sed

whe

n in

curr

ed.

The

amou

nt c

harg

ed t

o th

e co

mpr

ehen

sive

ope

rating

sta

tem

ent

in r

espe

ct o

f de

fined

ben

efit s

uper

annu

atio

n pl

ans

repr

esen

ts t

he c

ontr

ibut

ions

mad

e by

Nor

ther

n H

ealth

to t

he s

uper

annu

atio

n pl

ans

in

resp

ect

of t

he s

ervi

ces

of c

urre

nt s

taff

dur

ing

the

repo

rtin

g pe

riod

. S

uper

annu

atio

n co

ntri

bution

s ar

e m

ade

to t

he p

lans

bas

ed o

n th

e re

leva

nt r

ules

of

each

pla

n, a

nd a

re b

ased

upo

n ac

tuar

ial a

dvic

e.

All

infr

astr

uctu

re a

sset

s, b

uild

ings

, pl

ant

and

equi

pmen

t an

d ot

her

non-

finan

cial

phy

sica

l ass

ets

that

hav

e fin

ite

usef

ul li

ves

are

depr

ecia

ted

(i.e

. ex

clud

es la

nd a

sset

s he

ld f

or s

ale,

and

inve

stm

ent

prop

erties

). D

epre

ciat

ion

begi

ns w

hen

the

asse

t is

ava

ilabl

e fo

r us

e, w

hich

is w

hen

it is

in t

he lo

cation

and

con

dition

nec

essa

ry f

or it

to

be c

apab

le o

f op

erat

ing

in a

man

ner

inte

nded

by

man

agem

ent.

As

part

of

the

build

ings

val

uation

, bu

ildin

g va

lues

wer

e se

para

ted

into

com

pone

nts

and

each

com

pone

nt a

sses

sed

for

its

usef

ul li

fe w

hich

is r

epre

sent

ed a

bove

.

* A s

tock

take

of N

orth

ern

Hea

lth's

pla

nt a

nd e

quip

men

t has

resu

lted

in s

ome

chan

ges

in a

sset

cat

egor

ies

and

usef

ul li

ves.

The

impa

ct o

f the

se c

hang

es a

re d

etai

led

in N

ote

10:P

rope

rty, p

lant

and

equ

ipm

ent a

nd N

ote

28: C

orre

cito

n of

er

rors

and

revi

sion

of e

stim

ates

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

10

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

0 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

1 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sA

mo

rtis

atio

n

an

nual

ly;

and

w

hene

ver

ther

e is

an

indi

cation

tha

t th

e in

tang

ible

ass

et m

ay b

e im

pair

ed.

Fin

ance

co

sts

Fina

nce

cost

s in

clud

e:

inte

rest

on

bank

ove

rdra

fts

and

shor

t-te

rm a

nd lo

n g-t

erm

bor

row

ings

(In

tere

st e

xpen

se is

rec

ogni

sed

in t

he p

erio

d in

whi

ch it

is in

curr

ed);

am

ortisa

tion

of

disc

ount

s or

pre

miu

ms

rela

ting

to

borr

owin

gs;

am

ortisa

tion

of

anci

llary

cos

ts in

curr

ed in

con

nect

ion

with

the

arra

ngem

ent

of b

orro

win

gs;

and

fin

ance

cha

rges

in r

espe

ct o

f fin

ance

leas

es r

ecog

nise

d in

acc

orda

nce

with

AASB 1

17Le

ases

.G

ran

ts a

nd

oth

er t

ran

sfer

s

Oth

er o

per

atin

g e

xpen

ses

Sup

plie

s an

d co

nsum

able

s

Bad

and

dou

btfu

l deb

ts

Fair

val

ue o

f as

sets

, se

rvic

es a

nd r

esou

rces

pro

vide

d fr

ee o

f ch

arge

or

for

nom

inal

con

side

ration

(i)

Oth

er c

om

pre

hen

sive

inco

me

Net

gai

n/

(lo

ss)

on

no

n-f

inan

cial

ass

ets

R

eval

uation

gai

ns/

(los

ses)

of

non-

finan

cial

phy

sica

l ass

ets

Ref

er t

o N

ote

1(k)

Rev

alua

tion

s of

non

-fin

anci

al p

hysi

cal a

sset

s.

Net

gai

n/ (

loss

) on

dis

posa

l of

non-

finan

cial

ass

ets

Any

gai

n or

loss

on

the

disp

osal

of

non-

finan

cial

ass

ets

is r

ecog

nise

d at

the

dat

e of

dis

posa

l and

is t

he d

iffer

ence

bet

wee

n th

e pr

ocee

ds a

nd t

he c

arry

ing

valu

e of

the

ass

et a

t th

e tim

e.

Inta

ngib

le p

rodu

ced

asse

ts w

ith

finite

lives

are

dep

reci

ated

as

an e

xpen

se o

n a

syst

emat

ic b

asis

ove

r th

e as

set’s

usef

ul li

fe.

The

amor

tisa

tion

per

iod

and

the

amor

tisa

tion

met

hod

for

an in

tang

ible

ass

et w

ith

a fin

ite

usef

ul li

fe a

re r

evie

wed

at

leas

t at

the

end

of

each

ann

ual r

epor

ting

per

iod.

In

addi

tion

, an

ass

essm

ent

is m

ade

at

each

rep

orting

dat

e to

det

erm

ine

whe

ther

the

re a

re in

dica

tors

tha

t th

e in

tang

ible

ass

et c

once

rned

is im

pair

ed.

If s

o, t

he a

sset

con

cern

ed is

tes

ted

as t

o w

heth

er it

s ca

rryi

ng v

alue

exc

eeds

its

reco

vera

ble

amou

nt.

Nor

ther

n H

ealth

test

s al

l int

angi

ble

asse

ts w

ith

inde

finite

usef

ul li

ves

for

impa

irm

ent

by c

ompa

ring

the

rec

over

able

am

ount

for

eac

h as

set

with

its

carr

ying

am

ount

:

Oth

er c

ompr

ehen

sive

inco

me

mea

sure

s th

e ch

ange

in v

olum

e or

val

ue o

f as

sets

or

liabi

litie

s th

at d

o no

t re

sult f

rom

tra

nsac

tion

s.

Inta

ngib

le a

sset

s w

ith

finite

usef

ul li

ves

are

amor

tise

d ov

er 3

yea

rs (

2014

: 3

year

s).

Any

exc

ess

of t

he c

arry

ing

amou

nt o

ver

the

reco

vera

ble

amou

nt is

rec

ogni

sed

as a

n im

pair

men

t lo

ss.

Fina

nce

cost

s ar

e re

cogn

ised

as

expe

nses

in t

he p

erio

d in

whi

ch t

hey

are

incu

rred

.

Gra

nts

and

othe

r tr

ansf

ers

to t

hird

par

ties

(ot

her

than

con

trib

utio

n to

ow

ners

) ar

e re

cogn

ised

as

an e

xpen

se in

the

rep

orting

per

iod

in w

hich

the

y ar

e pa

id o

r pa

yabl

e. T

hey

incl

ude

tran

sact

ions

suc

h as

: gr

ants

, su

bsid

ies

and

pers

onal

ben

efit p

aym

ents

mad

e in

cas

h to

indi

vidu

als.

Am

ortisa

tion

is a

lloca

ted

to in

tang

ible

non

-pro

duce

d as

sets

with

finite

usef

ul li

ves

on a

sys

tem

atic

(ty

pica

lly s

trai

ght-

line)

bas

is o

ver

the

asse

t’s

usef

ul li

fe.

Am

ortisa

tion

beg

ins

whe

n th

e as

set

is a

vaila

ble

for

use,

tha

t is

, w

hen

it is

in t

he lo

cation

and

con

dition

nec

essa

ry f

or it

to

be c

apab

le o

f op

erat

ing

in t

he m

anne

r in

tend

ed b

y m

anag

emen

t. T

he c

onsu

mpt

ion

of in

tang

ible

non

-pro

duce

d as

sets

with

finite

usef

ul li

ves

is c

lass

ified

as

amor

tisa

tion

.

Net

gai

n/ (

loss

) on

non

-fin

anci

al a

sset

s an

d lia

bilit

ies

incl

udes

rea

lised

and

unr

ealis

ed g

ains

and

loss

es a

s fo

llow

s:

Oth

er o

pera

ting

exp

ense

s ge

nera

lly r

epre

sent

the

day

-to-

day

runn

ing

cost

s in

curr

ed in

nor

mal

ope

ration

s an

d in

clud

e:

Sup

plie

s an

d se

rvic

es c

osts

whi

ch a

re r

ecog

nise

d as

an

expe

nse

in t

he r

epor

ting

per

iod

in w

hich

the

y ar

e in

curr

ed.

The

carr

ying

am

ount

s of

any

inve

ntor

ies

held

for

dis

trib

utio

n ar

e ex

pens

ed w

hen

dist

ribu

ted.

Ref

er t

o N

ote

1 (k

) Im

pair

men

t of

fin

anci

al a

sset

s.

Con

trib

utio

ns o

f re

sour

ces

prov

ided

fre

e of

cha

rge

or f

or n

omin

al c

onsi

dera

tion

are

rec

ogni

sed

at t

heir

fai

r va

lue

whe

n th

e tr

ansf

eree

obt

ains

con

trol

ove

r th

em,

irre

spec

tive

of

whe

ther

res

tric

tion

s or

co

nditio

ns a

re im

pose

d ov

er t

he u

se o

f th

e co

ntri

bution

s, u

nles

s re

ceiv

ed f

rom

ano

ther

age

ncy

as a

con

sequ

ence

of

a re

stru

ctur

ing

of a

dmin

istr

ativ

e ar

rang

emen

ts.

In t

he la

tter

cas

e, s

uch

a tr

ansf

er w

ill

be r

ecog

nise

d at

its

carr

ying

val

ue.

Con

trib

utio

ns in

the

for

m o

f se

rvic

es a

re o

nly

reco

gnis

ed w

hen

a fa

ir v

alue

can

be

relia

bly

dete

rmin

ed a

nd t

he s

ervi

ces

wou

ld h

ave

been

pur

chas

ed if

not

don

ated

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

11

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

2 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sN

et g

ain

/ (

loss

) o

n f

inan

cial

inst

rum

ents

Net

gai

n/ (

loss

) on

fin

anci

al in

stru

men

ts in

clud

es:

r

ealis

ed a

nd u

nrea

lised

gai

ns a

nd lo

sses

fro

m r

eval

uation

s of

fin

anci

al in

stru

men

ts a

t fa

ir v

alue

;

impa

irm

ent

and

reve

rsal

of

impa

irm

ent

for

finan

cial

inst

rum

ents

at

amor

tise

d co

st (

refe

r to

Not

e 1

(k))

; an

d

dis

posa

ls o

f fin

anci

al a

sset

s an

d de

reco

gnitio

n of

fin

anci

al li

abili

ties

.A

mo

rtis

atio

n o

f n

on

-pro

du

ced

inta

ng

ible

ass

ets

Imp

airm

ent

of

no

n-f

inan

cial

ass

ets

Rev

alu

atio

ns

of

fin

anci

al in

stru

men

t at

fai

r va

lue

Ref

er t

o N

ote

1 (j

) Fi

nanc

ial i

nstr

umen

ts.

Sh

are

of

net

pro

fits

/ (

loss

es)

of

asso

ciat

es a

nd

jo

int

enti

ties

, ex

clu

din

g d

ivid

end

s.Ref

er t

o N

ote

1 (d

) Pr

inci

ples

of

cons

olid

atio

n.O

ther

gai

ns/

(lo

sses

) fr

om

oth

er c

om

pre

hen

sive

inco

me

Oth

er g

ains

/ (l

osse

s) in

clud

e:

the

rev

alua

tion

of

the

pres

ent

valu

e of

the

long

ser

vice

leav

e lia

bilit

y du

e to

cha

nges

in t

he b

ond

inte

rest

rat

es;

and

t

rans

fer

of a

mou

nts

from

the

res

erve

s to

acc

umul

ated

sur

plus

or

net

resu

lt d

ue t

o di

spos

al o

r de

reco

gnitio

n or

rec

lass

ifica

tion

.

(j)

Fin

anci

al in

stru

men

ts

The

follo

win

g re

fers

to

finan

cial

inst

rum

ents

unl

ess

othe

rwis

e st

ated

.Lo

ans

and

rece

ivab

les

(k)

Ass

ets

Cas

h a

nd

Cas

h E

qu

ival

ents

Inta

ngib

le n

on-p

rodu

ced

asse

ts w

ith

finite

lives

are

am

ortise

d as

an

othe

r ec

onom

ic f

low

on

a sy

stem

atic

bas

is o

ver

the

asse

t’s

usef

ul li

fe.

Am

ortisa

tion

beg

ins

whe

n th

e as

set

is a

vaila

ble

for

use,

tha

t is

w

hen

it is

in t

he lo

cation

and

con

dition

nec

essa

ry f

or it

to

be c

apab

le o

f op

erat

ing

in t

he m

anne

r in

tend

ed b

y m

anag

emen

t.

Goo

dwill

and

inta

ngib

le a

sset

s w

ith

inde

finite

usef

ul li

ves

(and

inta

ngib

le a

sset

s no

t av

aila

ble

for

use)

are

tes

ted

annu

ally

for

impa

irm

ent

and

whe

neve

r th

ere

is a

n in

dica

tion

tha

t th

e as

set

may

be

impa

ired

. Ref

er t

o N

ote

1 (k

) Ass

ets.

Fina

ncia

l ins

trum

ents

ari

se o

ut o

f co

ntra

ctua

l agr

eem

ents

tha

t gi

ve r

ise

to a

fin

anci

al a

sset

of

one

entity

and

a f

inan

cial

liab

ility

or

equi

ty in

stru

men

t of

ano

ther

ent

ity.

Due

to

the

natu

re o

f N

orth

ern

Hea

lth’

s ac

tivi

ties

, ce

rtai

n fin

anci

al a

sset

s an

d fin

anci

al li

abili

ties

ari

se u

nder

sta

tute

rat

her

than

a c

ontr

act.

Suc

h fin

anci

al a

sset

s an

d fin

anci

al li

abili

ties

do

not

mee

t th

e de

finitio

n of

fin

anci

al in

stru

men

ts

in A

ASB 1

32 F

inan

cial

Ins

trum

ents

: Pr

esen

tation

. Fo

r ex

ampl

e, s

tatu

tory

rec

eiva

bles

ari

sing

fro

m t

axes

, fin

es a

nd p

enal

ties

do

not

mee

t th

e de

finitio

n of

fin

anci

al in

stru

men

ts a

s th

ey d

o no

t ar

ise

unde

r co

ntra

ct.

Whe

re r

elev

ant,

for

not

e di

sclo

sure

pur

pose

s, a

dis

tinc

tion

is m

ade

betw

een

thos

e fin

anci

al a

sset

s an

d fin

anci

al li

abili

ties

that

mee

t th

e de

finitio

n of

fin

anci

al in

stru

men

ts in

acc

orda

nce

with

AASB 1

32 a

nd

thos

e th

at d

o no

t.

Loan

s an

d re

ceiv

able

s ar

e fin

anci

al in

stru

men

t as

sets

with

fixed

and

det

erm

inab

le p

aym

ents

tha

t ar

e no

t qu

oted

on

an a

ctiv

e m

arke

t. T

hese

ass

ets

are

initia

lly r

ecog

nise

d at

fai

r va

lue

plus

any

dir

ectly

attr

ibut

able

tra

nsac

tion

cos

ts.

Sub

sequ

ent

to in

itia

l mea

sure

men

t, lo

ans

and

rece

ivab

les

are

mea

sure

d at

am

ortise

d co

st u

sing

the

eff

ective

inte

rest

met

hod,

less

any

impa

irm

ent.

Loan

s an

d re

ceiv

able

s ca

tego

ry in

clud

es c

ash

and

depo

sits

(re

fer

to N

ote

1(k)

), t

erm

dep

osits

with

mat

urity

grea

ter

than

thr

ee m

onth

s, t

rade

rec

eiva

bles

, lo

ans

and

othe

r re

ceiv

able

s, b

ut n

ot s

tatu

tory

re

ceiv

able

s.

Cas

h an

d ca

sh e

quiv

alen

ts r

ecog

nise

d on

the

bal

ance

she

et c

ompr

ise

cash

on

hand

and

cas

h at

ban

k, d

epos

its

at c

all a

nd h

ighl

y liq

uid

inve

stm

ents

(w

ith

an o

rigi

nal m

atur

ity

of t

hree

mon

ths

or le

ss),

w

hich

are

hel

d fo

r th

e pu

rpos

e of

mee

ting

sho

rt t

erm

cas

h co

mm

itm

ents

rat

her

than

for

inve

stm

ent

purp

oses

, w

hich

are

rea

dily

con

vert

ible

to

know

n am

ount

s of

cas

h w

ith

an in

sign

ifica

nt r

isk

of c

hang

es

in v

alue

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

12

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

2 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

3 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sR

ecei

vab

les

Rec

eiva

bles

con

sist

of:

c

ontr

actu

al r

ecei

vabl

es,

whi

ch in

clud

es m

ainl

y de

btor

s in

rel

atio

n to

goo

ds a

nd s

ervi

ces,

ac

crue

d in

vest

men

t in

com

e, a

nd

sta

tuto

ry r

ecei

vabl

es,

whi

ch in

clud

es p

redo

min

antly

amou

nts

owin

g fr

om t

he V

icto

rian

Gov

ernm

ent

and

Goo

ds a

nd S

ervi

ces

Tax

(“G

ST”

) in

put

tax

cred

its

reco

vera

ble.

Inve

stm

ents

an

d o

ther

fin

anci

al a

sset

s

Inve

stm

ents

are

cla

ssifi

ed in

the

fol

low

ing

cate

gori

es:

f

inan

cial

ass

ets

at f

air

valu

e th

roug

h pr

ofit o

r lo

ss;

h

eld-

to-m

atur

ity;

lo

ans

and

rece

ivab

les;

and

a

vaila

ble-

for-

sale

fin

anci

al a

sset

s.

Inve

nto

ries

Pro

per

ty,

pla

nt

and

eq

uip

men

t

Rec

eiva

bles

tha

t ar

e co

ntra

ctua

l are

cla

ssifi

ed a

s fin

anci

al in

stru

men

ts a

nd c

ateg

oris

ed a

s lo

ans

and

rece

ivab

les.

Sta

tuto

ry r

ecei

vabl

es a

re r

ecog

nise

d an

d m

easu

red

sim

ilarl

y to

con

trac

tual

rec

eiva

bles

(e

xcep

t fo

r im

pair

men

t),

but

are

not

clas

sifie

d as

fin

anci

al in

stru

men

ts b

ecau

se t

hey

do n

ot a

rise

fro

m a

con

trac

t.Rec

eiva

bles

are

rec

ogni

sed

initia

lly a

t fa

ir v

alue

and

sub

sequ

ently

mea

sure

d at

am

ortise

d co

st,

usin

g th

e ef

fect

ive

inte

rest

met

hod,

less

any

acc

umul

ated

impa

irm

ent.

Inve

stm

ents

are

rec

ogni

sed

and

dere

cogn

ised

on

trad

e da

te w

here

pur

chas

e or

sal

e of

an

inve

stm

ent

is u

nder

a c

ontr

act

who

se t

erm

s re

quir

e de

liver

y of

the

inve

stm

ent

withi

n th

e tim

efra

me

esta

blis

hed

by t

he m

arke

t co

ncer

ned,

and

are

initia

lly m

easu

red

at f

air

valu

e, n

et o

f tr

ansa

ctio

n co

sts.

Trad

e de

btor

s ar

e ca

rrie

d at

nom

inal

am

ount

s du

e an

d ar

e du

e fo

r se

ttle

men

t w

ithi

n 30

day

s fr

om t

he d

ate

of r

ecog

nition

. Col

lect

abili

ty o

f de

bts

is r

evie

wed

on

an o

ngoi

ng b

asis

, an

d de

bts

whi

ch a

re

know

n to

be

unco

llect

ible

are

wri

tten

off

. A p

rovi

sion

for

dou

btfu

l deb

ts is

rec

ogni

sed

whe

n th

ere

is o

bjec

tive

evi

denc

e th

at t

he d

ebts

may

not

be

colle

cted

and

bad

deb

ts a

re w

ritt

en o

ff w

hen

iden

tifie

d.

Nor

ther

n H

ealth

clas

sifie

s its

othe

r fin

anci

al a

sset

s be

twee

n cu

rren

t an

d no

n-cu

rren

t as

sets

bas

ed o

n th

e pu

rpos

e fo

r w

hich

the

ass

ets

wer

e ac

quir

ed.

Man

agem

ent

dete

rmin

es t

he c

lass

ifica

tion

of

its

othe

r fin

anci

al a

sset

s at

initia

l rec

ogni

tion

.

The

base

s us

ed in

ass

essi

ng lo

ss o

f se

rvic

e po

tent

ial f

or in

vent

orie

s he

ld f

or d

istr

ibut

ion

incl

ude

curr

ent

repl

acem

ent

cost

and

tec

hnic

al o

r fu

nction

al o

bsol

esce

nce.

Te

chni

cal o

bsol

esce

nce

occu

rs w

hen

an

item

still

func

tion

s fo

r so

me

or a

ll of

the

tas

ks it

was

ori

gina

lly a

cqui

red

to d

o, b

ut n

o lo

nger

mat

ches

exi

stin

g te

chno

logi

es.

Fun

ctio

nal o

bsol

esce

nce

occu

rs w

hen

an it

em n

o lo

nge

r fu

nction

s th

e w

ay it

did

w

hen

it w

as f

irst

acq

uire

d.

Inve

ntor

ies

held

for

dis

trib

utio

n ar

e m

easu

red

at c

ost,

adj

uste

d fo

r an

y lo

ss o

f se

rvic

e po

tent

ial. A

ll ot

her

inve

ntor

ies

are

mea

sure

d on

the

bas

is o

f w

eigh

ted

aver

age

cost

.

Land

and

bui

ldin

gsar

e re

cogn

ised

initia

lly a

t co

st a

nd s

ubse

quen

tly

mea

sure

d at

fai

r va

lue

less

acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t.

Plan

t, e

quip

men

t an

d ve

hicl

es a

re r

ecog

nise

d in

itia

lly a

t co

st a

nd s

ubse

quen

tly

mea

sure

d at

fai

r va

lue

less

acc

umul

ated

dep

reci

atio

n an

d im

pair

men

t.

Dep

reci

ated

his

tori

cal c

ost

is g

ener

ally

a r

easo

nabl

e pr

oxy

for

fair

val

ue b

ecau

se o

f th

e sh

ort

lives

of

the

asse

ts c

once

rned

.

Cul

tura

l Ass

ets

(Art

wor

ks)

ar

e re

cogn

ised

initia

lly a

t co

st a

nd s

ubse

quen

tly

mea

sure

d at

fai

r va

lue

less

impa

irm

ent.

Nor

ther

n H

ealth

asse

sses

at

each

bal

ance

she

et d

ate

whe

ther

a f

inan

cial

ass

et o

r gr

oup

of f

inan

cial

ass

ets

is im

pair

ed.

All

finan

cial

ass

ets,

exc

ept

thos

e m

easu

red

at f

air

valu

e th

roug

h pr

ofit o

r lo

ss a

re s

ubje

ct t

o an

nual

rev

iew

for

impa

irm

ent.

Inve

ntor

ies

incl

ude

good

s an

d ot

her

prop

erty

hel

d ei

ther

for

sal

e, c

onsu

mpt

ion

or f

or d

istr

ibut

ion

at n

o or

nom

inal

cos

t in

the

ord

inar

y co

urse

of

busi

ness

ope

ration

s. I

t ex

clud

es d

epre

ciab

le a

sset

s.

All

non-

curr

ent

phys

ical

ass

ets

are

mea

sure

d in

itia

lly a

t co

st a

nd s

ubse

quen

tly

reva

lued

at

fair

val

ue le

ss a

ccum

ulat

ed d

epre

ciat

ion

and

impa

irm

ent.

Whe

re a

n as

set

is a

cqui

red

for

no o

r no

min

al c

ost,

the

co

st is

its

fair

val

ue a

t th

e da

te o

f ac

quis

itio

n. A

sset

s tr

ansf

erre

d as

par

t of

a m

erge

r/m

achi

nery

of

gove

rnm

ent

are

tran

sfer

red

at t

heir

car

ryin

g am

ount

.

Mor

e de

tails

abo

ut t

he v

alua

tion

tec

hniq

ues

and

inpu

ts u

sed

in d

eter

min

ing

the

fair

val

ue o

f no

n-fin

anci

al p

hysi

cal a

sset

s ar

e di

scus

sed

in N

ote

10 P

rope

rty,

pla

nt a

nd e

quip

men

t.

Cro

wn

land

is m

easu

red

at f

air

valu

e w

ith

rega

rd t

o th

e pr

oper

ty’s

hig

hest

and

bes

t us

e af

ter

due

cons

ider

atio

n is

mad

e fo

r an

y le

gal o

r ph

ysic

al r

estr

iction

s im

pose

d on

the

ass

et,

publ

ic a

nnou

ncem

ents

or

com

mitm

ents

mad

e in

rel

atio

n to

the

inte

nded

use

of

the

asse

t. T

heor

etic

al o

ppor

tuni

ties

tha

t m

ay b

e av

aila

ble

in r

elat

ion

to t

he a

sset

(s)

are

not

take

n in

to a

ccou

nt u

ntil

it is

vir

tual

ly c

erta

in t

hat

any

rest

rict

ions

will

no

long

er a

pply

. Th

eref

ore,

unl

ess

othe

rwis

e di

sclo

sed,

the

cur

rent

use

of

thes

e no

n-fin

anci

al p

hysi

cal a

sset

s w

ill b

e th

eir

high

est

and

best

use

s.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

13

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

4 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sR

eval

uat

ion

s o

f n

on

-cu

rren

t p

hys

ical

ass

ets

Inta

ng

ible

ass

ets

Pre

pay

men

ts

Dis

po

sal o

f n

on

-fin

anci

al a

sset

s

Imp

airm

ent

of

no

n-f

inan

cial

ass

ets

Goo

dwill

and

inta

ngib

le a

sset

s w

ith

inde

finite

lives

(an

d in

tang

ible

ass

ets

not

yet

avai

labl

e fo

r us

e) a

re t

este

d an

nual

ly f

or im

pair

men

t (a

s de

scri

bed

belo

w)

and

whe

neve

r th

ere

is a

n in

dica

tion

tha

t th

e as

set

ma y

be

impa

ired

.

If t

here

is a

n in

dica

tion

of

impa

irm

ent,

the

ass

ets

conc

erne

d ar

e te

sted

as

to w

heth

er t

heir

car

ryin

g va

lue

exce

eds

thei

r po

ssib

le r

ecov

erab

le a

mou

nt.

Whe

re a

n as

set’s

carr

ying

val

ue e

xcee

ds it

s re

cove

rabl

e am

ount

, th

e di

ffer

ence

is w

ritt

en-o

ff a

s an

exp

ense

exc

ept

to t

he e

xten

t th

at t

he w

rite

-dow

n ca

n be

deb

ited

to

an a

sset

rev

alua

tion

sur

plus

am

ount

app

licab

le t

o th

at s

ame

clas

s of

ass

et.

If t

here

is a

n in

dica

tion

tha

t th

ere

has

been

a r

ever

sal i

n th

e es

tim

ate

of a

n as

set’s

reco

vera

ble

amou

nt s

ince

the

last

impa

irm

ent

loss

was

rec

ogni

sed,

the

car

ryin

g am

ount

sha

ll be

incr

ease

d to

its

reco

vera

ble

amou

nt.

This

rev

ersa

l of

the

impa

irm

ent

loss

occ

urs

only

to

the

exte

nt t

hat

the

asse

t’s

carr

ying

am

ount

doe

s no

t ex

ceed

the

car

ryin

g am

ount

tha

t w

ould

hav

e be

en d

eter

min

ed,

net

of

depr

ecia

tion

or

amor

tisa

tion

, if

no im

pair

men

t lo

ss h

ad b

een

reco

gnis

ed in

pri

or y

ears

.

It is

dee

med

tha

t, in

the

eve

nt o

f th

e lo

ss o

r de

stru

ctio

n of

an

asse

t, t

he f

utur

e ec

onom

ic b

enef

its

aris

ing

from

the

use

of

the

asse

t w

ill b

e re

plac

ed u

nles

s a

spec

ific

deci

sion

to

the

cont

rary

has

bee

n m

ade.

Th

e re

cove

rabl

e am

ount

for

mos

t as

sets

is m

easu

red

at t

he h

ighe

r of

dep

reci

ated

rep

lace

men

t co

st a

nd f

air

valu

e le

ss c

osts

to

sell.

Rec

over

able

am

ount

for

ass

ets

held

pri

mar

ily t

o ge

nera

te n

et

cash

inflo

ws

is m

easu

red

at t

he h

ighe

r of

the

pre

sent

val

ue o

f fu

ture

cas

h flo

ws

expe

cted

to

be o

btai

ned

from

the

ass

et a

nd f

air

valu

e le

ss c

osts

to

sell.

All

othe

r no

n-fin

anci

al a

sset

s ar

e as

sess

ed a

nnua

lly f

or in

dica

tion

s of

impa

irm

ent.

Rev

alua

tion

sur

plus

is n

ot n

orm

ally

tra

nsfe

rred

to

accu

mul

ated

fun

ds o

n de

reco

gnitio

n of

the

rel

evan

t as

set.

In a

ccor

danc

e w

ith

FRD

103

F, N

orth

ern

Hea

lth’

s no

n-cu

rren

t ph

ysic

al a

sset

s w

ere

asse

ssed

to

dete

rmin

e w

heth

er r

eval

uation

of

the

non-

curr

ent

phys

ical

ass

ets

was

req

uire

d.

Inta

ngib

le a

sset

s re

pres

ent

iden

tifia

ble

non-

mon

etar

y as

sets

witho

ut p

hysi

cal s

ubst

ance

suc

h as

com

pute

r so

ftw

are.

Inta

ngib

le a

sset

s ar

e in

itia

lly r

ecog

nise

d at

cos

t. S

ubse

quen

tly,

inta

ngib

le a

sset

s w

ith

finite

usef

ul li

ves

are

carr

ied

at c

ost

less

acc

umul

ated

am

ortisa

tion

and

acc

umul

ated

impa

irm

ent

loss

es.

Cos

ts

incu

rred

sub

sequ

ent

to in

itia

l acq

uisi

tion

are

cap

ital

ised

whe

n it is

exp

ecte

d th

at a

dditio

nal f

utur

e ec

onom

ic b

enef

its

will

flo

w t

o N

orth

ern

Hea

lth.

Rev

alua

tion

incr

ease

s an

d re

valu

atio

n de

crea

ses

rela

ting

to

indi

vidu

al a

sset

s w

ithi

n an

ass

et c

lass

are

off

set

agai

nst

one

anot

her

withi

n th

at c

lass

but

are

not

off

set

in r

espe

ct o

f as

sets

in d

iffer

ent

clas

ses.

Expe

nditur

e on

res

earc

h ac

tivi

ties

is r

ecog

nise

d as

an

expe

nse

in t

he p

erio

d on

whi

ch it

is in

curr

ed.

Whe

n th

e re

cogn

itio

n cr

iter

ia in

AASB 1

38 I

ntan

gibl

e Ass

ets

are

met

, in

tern

ally

gen

erat

ed in

tang

ible

ass

ets

are

reco

gnis

ed a

nd m

easu

red

at c

ost

less

acc

umul

ated

dep

reci

atio

n/am

ortisa

tion

and

im

pair

men

t.

Oth

er n

on-f

inan

cial

ass

ets

incl

ude

prep

aym

ents

whi

ch r

epre

sent

pay

men

ts in

adv

ance

of

rece

ipt

of g

oods

or

serv

ices

or

that

par

t of

exp

endi

ture

mad

e in

one

acc

ount

ing

peri

od c

over

ing

a te

rm e

xten

ding

be

yond

tha

t pe

riod

.

Any

gai

n or

loss

on

the

sale

of

non-

finan

cial

ass

ets

is r

ecog

nise

d in

the

com

preh

ensi

ve o

pera

ting

sta

tem

ent.

Ref

er t

o no

te 1

(i)

– O

ther

com

preh

ensi

ve in

com

e.

Non

-cur

rent

phy

sica

l ass

ets

are

mea

sure

d at

fai

r va

lue

and

are

reva

lued

in a

ccor

danc

e w

ith

FRD

103

F N

on-c

urre

nt p

hysi

cal a

sset

s.

Thi

s re

valu

atio

n pr

oces

s no

rmal

ly o

ccur

s at

leas

t ev

ery

five

year

s,

base

d up

on t

he a

sset

’s G

over

nmen

t Pu

rpos

e Cla

ssifi

cation

, bu

t m

ay o

ccur

mor

e fr

eque

ntly

if f

air

valu

e as

sess

men

ts in

dica

te m

ater

ial c

hang

es in

val

ues.

Ind

epen

dent

val

uers

are

use

d to

con

duct

the

se

sche

dule

d re

valu

atio

ns a

nd a

ny in

teri

m r

eval

uation

s ar

e de

term

ined

in a

ccor

danc

e w

ith

the

requ

irem

ents

of

the

FRD

s. R

eval

uation

incr

emen

ts o

r de

crem

ents

ari

se f

rom

diff

eren

ces

betw

een

an a

sset

’s

carr

ying

val

ue a

nd f

air

valu

e.

Rev

alua

tion

incr

emen

ts a

re r

ecog

nise

d in

‘oth

er c

ompr

ehen

sive

inco

me’

and

are

cre

dite

d di

rect

ly in

equ

ity

to t

he a

sset

rev

alua

tion

sur

plus

, ex

cept

tha

t, t

o th

e ex

tent

tha

t an

incr

emen

t re

vers

es a

re

valu

atio

n de

crem

ent

in r

espe

ct o

f th

at s

ame

clas

s of

ass

et p

revi

ousl

y re

cogn

ised

as

an e

xpen

se in

net

res

ult,

the

incr

emen

t is

rec

ogni

sed

as in

com

e in

the

net

res

ult.

Rev

alua

tion

dec

rem

ents

are

rec

ogni

sed

in ‘o

ther

com

preh

ensi

ve in

com

e’ t

o th

e ex

tent

tha

t a

cred

it b

alan

ce e

xist

s in

the

ass

et r

eval

uation

sur

plus

in r

espe

ct o

f th

e sa

me

clas

s of

pro

pert

y, p

lant

and

eq

uipm

ent.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

14

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

4 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

5 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sIm

pai

rmen

t o

f fi

nan

cial

ass

ets

(l)

Liab

iliti

esP

ayab

les

Paya

bles

con

sist

of:

s

tatu

tory

pay

able

s, s

uch

as g

oods

and

ser

vice

s ta

x an

d fr

inge

ben

efits

tax

paya

bles

.

Pro

visi

on

s

Emp

loye

e b

enef

its

Wag

es a

nd s

alar

ies,

ann

ual l

eave

and

acc

rued

day

s of

f

Dep

endi

ng o

n th

e ex

pect

atio

n of

the

tim

ing

of s

ettlem

ent,

liab

ilities

for

wag

es a

nd s

alar

ies,

ann

ual l

eave

and

acc

rued

day

s of

f ar

e m

easu

red

at:

un

disc

ount

ed v

alue

– if

the

hea

lth

serv

ice

expe

cts

to w

holly

set

tle

withi

n 12

mon

ths;

or

pr

esen

t va

lue

– if

the

heal

th s

ervi

ce d

oes

not

expe

ct t

o w

holly

set

tle

withi

n 12

mon

ths.

Long

ser

vice

leav

e (L

SL)

Liab

ility

for

LSL

is r

ecog

nise

d in

the

pro

visi

on f

or e

mpl

oyee

ben

efits.

The

com

pone

nts

of t

his

curr

ent

LSL

liabi

lity

are

mea

sure

d at

:

undi

scou

nted

val

ue –

if N

orth

ern

Hea

lth

expe

cts

to w

holly

set

tle

withi

n 12

mon

ths;

and

pr

esen

t va

lue

– if

Nor

ther

n H

ealth

does

not

exp

ect

to w

holly

set

tle

withi

n 12

mon

ths.

Con

trac

tual

pay

able

s ar

e cl

assi

fied

as f

inan

cial

inst

rum

ents

and

are

initia

lly r

ecog

nise

d at

fai

r va

lue,

and

the

n su

bseq

uent

ly c

arri

ed a

t am

ortise

d co

st.

Sta

tuto

ry p

ayab

les

are

reco

gnis

ed a

nd m

easu

red

sim

ilarl

y to

con

trac

tual

pay

able

s, b

ut a

re n

ot c

lass

ified

as

finan

cial

inst

rum

ents

and

not

incl

uded

in t

he c

ateg

ory

of f

inan

cial

liab

ilities

at

amor

tise

d co

st,

beca

use

they

do

not

aris

e fr

om a

con

trac

t.

Prov

isio

ns a

re r

ecog

nise

d w

hen

Nor

ther

n H

ealth

has

a pr

esen

t ob

ligat

ion,

the

fut

ure

sacr

ifice

of

econ

omic

ben

efits

is p

roba

ble,

and

the

am

ount

of

the

prov

isio

n ca

n be

mea

sure

d re

liabl

y.

The

amou

nt r

ecog

nise

d as

a li

abili

ty is

the

bes

t es

tim

ate

of t

he c

onsi

dera

tion

req

uire

d to

set

tle

the

pres

ent

oblig

atio

n at

rep

orting

dat

e, t

akin

g in

to a

ccou

nt t

he r

isks

and

unc

erta

inties

sur

roun

ding

the

ob

li gat

ion.

Whe

re a

pro

visi

on is

mea

sure

d us

ing

the

cash

flo

ws

estim

ated

to

sett

le t

he p

rese

nt o

blig

atio

n, it

s ca

rryi

ng a

mou

nt is

the

pre

sent

val

ue o

f th

ose

cash

flo

ws,

usi

ng a

dis

coun

t ra

te t

hat

refle

cts

the

tim

e va

lue

of m

oney

and

ris

ks s

peci

fic t

o th

e pr

ovis

ion.

Whe

n so

me

or a

ll of

the

eco

nom

ic b

enef

its

requ

ired

to

sett

le a

pro

visi

on a

re e

xpec

ted

to b

e re

ceiv

ed f

rom

a t

hird

par

ty,

the

rece

ivab

le is

rec

ogni

sed

as a

n as

set

if it is

vir

tual

ly c

erta

in t

hat

reco

very

will

be

rece

ived

and

the

am

ount

of

the

rece

ivab

le c

an b

e m

easu

red

relia

bly.

This

pro

visi

on a

rise

s fo

r be

nefit

s ac

crui

ng t

o em

ploy

ees

in r

espe

ct o

f w

ages

and

sal

arie

s, a

nnua

l lea

ve a

nd lo

ng s

ervi

ce le

ave

for

serv

ices

ren

dere

d to

the

rep

orting

dat

e.

An y

gai

n or

loss

fol

low

ed r

eval

uation

of

the

pres

ent

valu

e of

non

-cur

rent

LSL

liabi

lity

is r

ecog

nise

d as

a t

rans

action

, ex

cept

to

the

exte

nt t

hat

a ga

in o

r lo

ss a

rise

s du

e to

cha

nges

in b

ond

inte

rest

rat

es f

or

whi

ch it

is t

hen

reco

gnis

ed a

s an

oth

er e

cono

mic

flo

w.

Liab

ilities

for

wag

es a

nd s

alar

ies,

ann

ual l

eave

and

acc

rued

day

s of

f ar

e al

l rec

ogni

sed

in t

he p

rovi

sion

for

em

ploy

ee b

enef

its

as ‘c

urre

nt li

abili

ties

’, be

caus

e th

e he

alth

ser

vice

doe

s no

t ha

ve a

n un

cond

itio

nal r

ight

to

defe

r se

ttle

men

ts o

f th

ese

liabi

litie

s.

Unc

ondi

tion

al L

SL

is d

iscl

osed

in t

he n

otes

to

the

finan

cial

sta

tem

ents

as

a cu

rren

t lia

bilit

y, e

ven

whe

re N

orth

ern

Hea

lth

does

not

exp

ect

to s

ettle

the

liabi

lity

withi

n 12

mon

ths

beca

use

it w

ill n

ot h

ave

the

unco

nditio

nal r

ight

to

defe

r th

e se

ttle

men

t of

the

ent

itle

men

t sh

ould

an

empl

oyee

tak

e le

ave

withi

n 12

mon

ths.

Con

dition

al L

SL

is d

iscl

osed

as

a no

n-cu

rren

t lia

bilit

y. T

here

is a

n un

cond

itio

nal r

ight

to

defe

r th

e se

ttle

men

t of

the

ent

itle

men

t un

til t

he e

mpl

oyee

has

com

plet

ed t

he r

equi

site

yea

rs o

f se

rvic

e. T

his

non-

curr

ent

LSL

liabi

lity

is m

easu

red

at p

rese

nt v

alue

.

The

amou

nt o

f th

e al

low

ance

is t

he d

iffer

ence

bet

wee

n th

e fin

anci

al a

sset

’s c

arry

ing

amou

nt a

nd t

he p

rese

nt v

alue

of

estim

ated

fut

ure

cash

flo

ws,

dis

coun

ted

at t

he e

ffec

tive

inte

rest

rat

e.

At

the

end

of e

ach

repo

rtin

g pe

riod

Nor

ther

n H

ealth

asse

sses

whe

ther

the

re is

obj

ective

evi

denc

e th

at a

fin

anci

al a

sset

or

grou

p of

fin

anci

al a

sset

is im

pair

ed.

All

finan

cial

inst

rum

ent

asse

ts,

exce

pt t

hose

m

easu

red

at f

air

valu

e th

roug

h pr

ofit o

r lo

ss,

are

subj

ect

to a

nnua

l rev

iew

for

impa

irm

ent.

c

ontr

actu

al p

ayab

les

whi

ch c

onsi

st p

redo

min

antly

of a

ccou

nts

paya

ble

repr

esen

ting

liab

ilities

for

goo

ds a

nd s

ervi

ces

prov

ided

to

Nor

ther

n H

ealth

prio

r to

the

end

of

the

finan

cial

yea

r th

at a

re

unpa

id,

and

aris

e w

hen

Nor

ther

n H

ealth

beco

mes

obl

iged

to

mak

e fu

ture

pay

men

ts in

res

pect

of

the

purc

hase

of

thos

e go

ods

and

serv

ices

. Th

e no

rmal

cre

dit

term

s fo

r ac

coun

ts p

ayab

le a

re u

sual

ly N

ett

45 d

ays.

Rec

eiva

bles

are

ass

esse

d fo

r ba

d an

d do

ubtf

ul d

ebts

on

a re

gula

r ba

sis.

Bad

deb

ts c

onsi

dere

d as

wri

tten

off

and

allo

wan

ces

for

doub

tful

rec

eiva

bles

are

exp

ense

d. B

ad d

ebt

wri

tten

off

by

mut

ual c

onse

nt

and

the

allo

wan

ce f

or d

oubt

ful d

ebts

are

cla

ssifi

ed a

s ‘o

ther

com

preh

ensi

ve in

com

e’ in

the

net

res

ult.

In a

sses

sing

impa

irm

ent

of s

tatu

tory

(no

n-co

ntra

ctua

l) f

inan

cial

ass

ets,

whi

ch a

re n

ot f

inan

cial

inst

rum

ents

, pr

ofes

sion

al jud

gem

ent

is a

pplie

d in

ass

essi

ng m

ater

ialit

y us

ing

estim

ates

, av

erag

es a

nd o

ther

co

mpu

tation

al m

etho

ds in

acc

orda

nce

with

AASB 1

36 I

mpa

irm

ent

of A

sset

s.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

15

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

6 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

sTe

rmin

atio

n be

nefit

s

On

-co

sts

Su

per

ann

uat

ion

liab

iliti

es

(m)

Leas

es

Fin

ance

leas

esEn

tity

as

less

or

Op

erat

ing

leas

es

Entity

as

less

or

Entity

as

less

ee

Leas

e In

cent

ives

Leas

ehol

d Im

prov

emen

ts

Prov

isio

ns f

or o

n-co

sts,

suc

h as

wor

kers

com

pens

atio

n an

d su

pera

nnua

tion

are

rec

ogni

sed

toge

ther

with

prov

isio

ns f

or e

mpl

oyee

ben

efits.

Nor

ther

n H

ealth

does

not

rec

ogni

se a

ny u

nfun

ded

defin

ed b

enef

it li

abili

ty in

res

pect

of

the

supe

rann

uation

pla

ns b

ecau

se t

he e

ntity

has

no le

gal o

r co

nstr

uctive

obl

igat

ion

to p

ay f

utur

e be

nefit

s re

lating

to

its

empl

oyee

s; it

s on

ly o

blig

atio

n is

to

pay

supe

rann

uation

con

trib

utio

ns a

s th

ey f

all d

ue.

The

Dep

artm

ent

of T

reas

ury

and

Fina

nce

adm

inis

ters

and

dis

clos

es t

he S

tate

’s d

efin

ed b

enef

it li

abili

ties

in it

s fin

anci

al r

epor

t.

A le

ase

is a

rig

ht t

o us

e an

ass

et f

or a

n ag

reed

per

iod

of t

ime

in e

xcha

nge

for

paym

ent.

Lea

ses

are

clas

sifie

d at

the

ir in

cept

ion

as e

ithe

r op

erat

ing

or f

inan

ce le

ases

bas

ed o

n th

e ec

onom

ic s

ubst

ance

of

the

agre

emen

t so

as

to r

efle

ct t

he r

isks

and

rew

ards

inci

dent

al t

o ow

ners

hip.

For

serv

ice

conc

essi

on a

rran

gem

ents

, th

e co

mm

ence

men

t of

the

leas

e te

rm is

dee

med

to

be t

he d

ate

the

asse

t is

com

mis

sion

ed.

All

othe

r le

ases

are

cla

ssifi

ed a

s op

erat

ing

leas

es.

Nor

ther

n H

ealth

does

not

hol

d an

y fin

ance

leas

e ar

rang

emen

ts w

ith

othe

r pa

rtie

s.

All

ince

ntiv

es f

or t

he a

gree

men

t of

a n

ew o

r re

new

ed o

pera

ting

leas

e ar

e re

cogn

ised

as

an in

tegr

al p

art

of t

he n

et c

onsi

dera

tion

agr

eed

for

the

use

of t

he le

ased

ass

et,

irre

spec

tive

of

the

ince

ntiv

e’s

natu

re

or f

orm

or

the

tim

ing

of p

aym

ents

.

Ope

rating

leas

e pa

ymen

ts,

incl

udin

g an

y co

ntin

gent

ren

tals

, ar

e re

cogn

ised

as

an e

xpen

se in

the

com

preh

ensi

ve o

pera

ting

sta

tem

ent

on a

str

aigh

t lin

e ba

sis

over

the

leas

e te

rm,

exce

pt w

here

ano

ther

sy

stem

atic

bas

is is

mor

e re

pres

enta

tive

of

the

tim

e pa

tter

n of

the

ben

efits

deri

ved

from

the

use

of

the

leas

ed a

sset

. Th

e le

ased

ass

et is

not

rec

ogni

sed

in t

he b

alan

ce s

heet

.

Term

inat

ion

bene

fits

are

paya

ble

whe

n em

ploy

men

t is

ter

min

ated

bef

ore

the

norm

al r

etir

emen

t da

te o

r w

hen

an e

mpl

oyee

dec

ides

to

acce

pt a

n of

fer

of b

enef

its

in e

xcha

nge

for

the

term

inat

ion

of

empl

oym

ent.

Nor

ther

n H

ealth

reco

gnis

es t

erm

inat

ion

bene

fits

whe

n it is

dem

onst

rabl

y co

mm

itte

d to

eithe

r te

rmin

atin

g th

e em

ploy

men

t of

cur

rent

em

ploy

ees

acco

rdin

g to

a d

etai

led

form

al p

lan

witho

ut p

ossi

bilit

y of

w

ithd

raw

al o

r pr

ovid

ing

term

inat

ion

bene

fits

as a

res

ult

of a

n of

fer

mad

e to

enc

oura

ge v

olun

tary

red

unda

ncy.

Ben

efits

falli

ng d

ue m

ore

than

12

mon

ths

afte

r th

e en

d of

the

rep

orting

per

iod

are

disc

ount

ed

to p

rese

nt v

alue

.

Leas

es o

f pr

oper

ty,

plan

t an

d eq

uipm

ent

are

clas

sifie

d as

fin

ance

leas

es w

hene

ver

the

term

s of

the

leas

e tr

ansf

er s

ubst

antial

ly a

ll th

e ri

sks

and

rew

ards

of

owne

rshi

p to

the

less

ee.

Ren

tal i

ncom

e fr

om o

pera

ting

leas

e is

rec

ogni

sed

on a

str

aigh

t-lin

e ba

sis

over

the

ter

m o

f th

e re

leva

nt le

ase.

In t

he e

vent

tha

t le

ase

ince

ntiv

es a

re g

iven

to

the

less

ee,

the

aggr

egat

e co

st o

f in

cent

ives

are

rec

ogni

sed

as a

red

uction

of

rent

al in

com

e ov

er t

he le

ase

term

, on

a s

trai

ght-

line

basi

s un

less

ano

ther

sy

stem

atic

bas

is is

mor

e ap

prop

riat

e of

the

tim

e pa

tter

n ov

er w

hich

the

eco

nom

ic b

enef

it o

f th

e le

ased

ass

et is

dim

inis

hed.

All

ince

ntiv

es f

or t

he a

gree

men

t of

a n

ew o

r re

new

ed o

pera

ting

leas

e ar

e re

cogn

ised

as

an in

tegr

al p

art

of t

he n

et c

onsi

dera

tion

agr

eed

for

the

use

of t

he le

ased

ass

et,

irre

spec

tive

of

the

ince

ntiv

e’s

natu

re

or f

orm

or

the

tim

ing

of p

aym

ents

.

In t

he e

vent

tha

t le

ase

ince

ntiv

es a

re r

ecei

ved

by t

he le

ssee

to

ente

r in

to o

pera

ting

leas

es,

such

ince

ntiv

es a

re r

ecog

nise

d as

a li

abili

ty.

The

agg

rega

te b

enef

its

of in

cent

ives

are

rec

ogni

sed

as a

red

uction

of

ren

tal e

xpen

se o

n a

stra

ight

-lin

e ba

sis,

exc

ept

whe

re a

noth

er s

yste

mat

ic b

asis

is m

ore

repr

esen

tative

of

the

tim

e pa

tter

n in

whi

ch e

cono

mic

ben

efits

from

the

leas

ed a

sset

is d

imin

ishe

d.

The

cost

of

leas

ehol

d im

prov

emen

ts a

re c

apital

ised

as

an a

sset

and

dep

reci

ated

ove

r th

e re

mai

ning

ter

m o

f th

e le

ase

or t

he e

stim

ated

use

ful l

ife o

f th

e im

prov

emen

ts,

whi

chev

er is

the

sho

rter

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

16

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

6 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

7 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s(n

) Eq

uit

yC

on

trib

ute

d c

apit

al

Pro

per

ty,

pla

nt

and

eq

uip

men

t re

valu

atio

n s

urp

lus

Sp

ecif

ic r

estr

icte

d p

urp

ose

su

rplu

s

(o)

Com

mit

men

ts

(p)

Co

nti

ng

ent

asse

ts a

nd

co

nti

ng

ent

liab

iliti

es

(q)

Goo

ds

and

Ser

vice

s Ta

x (G

ST)

(r)

Fore

ign

cu

rren

cy

(s)

Even

ts a

fter

th

e re

po

rtin

g p

erio

d

Inco

me,

exp

ense

s an

d as

sets

are

rec

ogni

sed

net

of t

he a

mou

nt o

f as

soci

ated

GST,

unl

ess

the

GST

incu

rred

is n

ot r

ecov

erab

le f

rom

the

tax

atio

n au

thor

ity.

In

this

cas

e, t

he G

ST

paya

ble

is r

ecog

nise

d as

pa

rt o

f th

e co

st o

f ac

quis

itio

n of

the

ass

et o

r as

par

t of

the

exp

ense

.

Rec

eiva

bles

and

pay

able

s ar

e st

ated

incl

usiv

e of

the

am

ount

of

GST

rece

ivab

le o

r pa

yabl

e. T

he n

et a

mou

nt o

f G

ST

reco

vera

ble

from

, or

pay

able

to,

the

tax

atio

n au

thor

ity

is in

clud

ed w

ith

othe

r re

ceiv

able

s or

pay

able

s in

the

bal

ance

she

et.

Cas

h flo

ws

are

pres

ente

d on

a g

ross

bas

is.

The

GST

com

pone

nts

of c

ash

flow

s ar

isin

g fr

om in

vest

ing

or f

inan

cing

act

ivitie

s w

hich

are

rec

over

able

fro

m,

or p

ayab

le t

o th

e ta

xation

aut

hori

ty,

are

pres

ente

d as

an

oper

atin

g ca

sh f

low

.

Com

mitm

ents

for

exp

endi

ture

and

con

ting

ent

asse

ts a

nd li

abili

ties

are

pre

sent

ed o

n a

gros

s ba

sis.

Ass

ets,

liab

ilities

, in

com

e or

exp

ense

s ar

ise

from

pas

t tr

ansa

ctio

ns o

r ot

her

past

eve

nts.

Whe

re t

he t

rans

action

s re

sult f

rom

an

agre

emen

t be

twee

n N

orth

ern

Hea

lth

and

othe

r pa

rtie

s, t

he t

rans

action

s ar

e on

ly r

ecog

nise

d w

hen

the

agre

emen

t is

irre

voca

ble

at o

r be

fore

the

end

of

the

repo

rtin

g pe

riod

.

The

asse

t re

valu

atio

n su

rplu

s is

use

d to

rec

ord

incr

emen

ts a

nd d

ecre

men

ts o

n th

e re

valu

atio

n of

non

-cur

rent

phy

sica

l ass

ets.

Tran

sfer

s of

net

ass

ets

aris

ing

from

adm

inis

trat

ive

rest

ruct

urin

gs a

re t

reat

ed a

s co

ntri

bution

s by

ow

ners

. Tr

ansf

ers

of n

et li

abili

ties

ari

sing

fro

m a

dmin

istr

ativ

e re

stru

ctur

es a

re t

o go

thr

ough

the

co

mpr

ehen

sive

ope

rating

sta

tem

ent.

Con

ting

ent

asse

ts a

nd c

onting

ent

liabi

litie

s ar

e no

t re

cogn

ised

in t

he b

alan

ce s

heet

, bu

t ar

e di

sclo

sed

by w

ay o

f no

te a

nd,

if qu

antifia

ble,

are

mea

sure

d at

nom

inal

val

ue.

Con

ting

ent

asse

ts a

nd c

onting

ent

liabi

litie

s ar

e pr

esen

ted

incl

usiv

e of

GST

rece

ivab

le o

r pa

yabl

e re

spec

tive

ly.

Adj

ustm

ents

are

mad

e to

am

ount

s re

cogn

ised

in t

he f

inan

cial

sta

tem

ents

for

eve

nts

whi

ch o

ccur

bet

wee

n th

e en

d of

the

rep

orting

per

iod

and

the

date

whe

n th

e fin

anci

al s

tate

men

ts a

re a

utho

rise

d fo

r is

sue,

whe

re t

hose

eve

nts

prov

ide

info

rmat

ion

abou

t co

nditio

ns w

hich

exi

sted

at

the

repo

rtin

g da

te.

Not

e di

sclo

sure

is m

ade

abou

t ev

ents

bet

wee

n th

e en

d of

the

rep

orting

per

iod

and

the

date

the

fin

anci

al

stat

emen

ts a

re a

utho

rise

d fo

r is

sue

whe

re t

he e

vent

s re

late

to

cond

itio

ns w

hich

aro

se a

fter

the

end

of

the

repo

rtin

g pe

riod

tha

t ar

e co

nsid

ered

to

be o

f m

ater

ial i

nter

est.

A s

peci

fic r

estr

icte

d pu

rpos

e su

rplu

s is

est

ablis

hed

whe

re N

orth

ern

Hea

lth

has

poss

essi

on o

r title

to t

he f

unds

but

has

no

disc

retion

to

amen

d or

var

y th

e re

stri

ctio

n an

d/or

con

dition

und

erly

ing

the

fund

s re

ceiv

ed.

Com

mitm

ents

for

fut

ure

expe

nditur

e in

clud

e op

erat

ing

and

capi

tal c

omm

itm

ents

ari

sing

fro

m c

ontr

acts

. Th

ese

com

mitm

ents

are

dis

clos

ed b

y w

ay o

f a

note

(re

fer

to n

ote

20)

at t

heir

nom

inal

val

ue a

nd a

re

incl

usiv

e of

the

GST

paya

ble.

In

addi

tion

, w

here

it is

con

side

red

appr

opri

ate

and

prov

ides

add

itio

nal r

elev

ant

info

rmat

ion

to u

sers

, th

e ne

t pr

esen

t va

lues

of

sign

ifica

nt in

divi

dual

pro

ject

s ar

e st

ated

. Th

ese

futu

re e

xpen

ditu

res

ceas

e to

be

disc

lose

d as

com

mitm

ents

onc

e th

e re

late

d lia

bilit

ies

are

reco

gnis

ed o

n th

e ba

lanc

e sh

eet.

Con

sist

ent

with

Aus

tral

ian

Acc

ount

ing

Inte

rpre

tation

103

8 Con

trib

utio

ns b

y O

wne

rs M

ade

to W

holly

-Ow

ned

Publ

ic S

ecto

r En

tities

and

FRD

119

A C

ontr

ibut

ions

by

Ow

ners

, a p

prop

riat

ions

for

add

itio

ns t

o th

e ne

t as

set

base

hav

e be

en d

esig

nate

d as

con

trib

uted

cap

ital

. O

ther

tra

nsfe

rs t

hat

are

in t

he n

atur

e of

con

trib

utio

ns t

o or

dis

trib

utio

ns b

y ow

ners

tha

t ha

ve b

een

desi

gnat

ed a

s co

ntri

bute

d ca

pita

l are

als

o tr

eate

d as

con

trib

uted

cap

ital

.

All

fore

ign

curr

ency

tra

nsac

tion

s du

ring

the

fin

anci

al y

ear

are

brou

ght

to a

ccou

nt u

sing

the

exc

hang

e ra

te in

eff

ect

at t

he d

ate

of t

he t

rans

action

. Fo

reig

n m

onet

ary

item

s ex

isting

at

the

end

of t

he

repo

rtin

g pe

riod

are

tra

nsla

ted

at t

he c

losi

ng r

ate

at t

he d

ate

of t

he e

nd o

f th

e re

port

ing

peri

od.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

17

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

8 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s(t

) A

AS

s is

sued

th

at a

re n

ot

yet

effe

ctiv

e

Sta

nd

ard

/In

terp

reta

tio

nS

um

mar

yA

pp

licab

le f

or

ann

ual

rep

ort

ing

p

erio

ds

beg

inn

ing

on

Imp

act

on

pu

blic

sec

tor

enti

ty f

inan

cial

st

atem

ents

01-J

an-1

7

The

chan

ges

in r

even

ue r

ecog

nition

req

uire

men

ts in

AASB 1

5 m

ay r

esul

t in

cha

nges

to

the

tim

ing

and

amou

nt o

f re

venu

e re

cord

ed in

the

fin

anci

al

stat

emen

ts.

The

Sta

ndar

d w

ill a

lso

requ

ire

addi

tion

al

disc

losu

res

on s

ervi

ce r

even

ue a

nd c

ontr

act

mod

ifica

tion

s.

A p

oten

tial

impa

ct w

ill b

e th

e up

fron

t re

cogn

itio

n of

re

venu

e fr

om li

cens

es t

hat

cove

r m

ultipl

e re

port

ing

peri

ods.

Rev

enue

tha

t w

as d

efer

red

and

amor

tise

d ov

er a

per

iod

may

now

nee

d to

be

reco

gnis

ed

imm

edia

tely

as

a tr

ansi

tion

al a

djus

tmen

t ag

ains

t th

e op

enin

g re

turn

ed e

arni

ngs

if th

ere

are

no f

orm

er

perf

orm

ance

obl

igat

ions

out

stan

ding

.

(Exp

osur

e D

raft

263

– p

oten

tial

de

ferr

al t

o 1

Jan

2018

)

AASB 2

014‑

4 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Cla

rific

atio

n of

Acc

epta

ble

Met

hods

of

Dep

reci

atio

n an

d Am

ortisa

tion

Am

ends

AASB 1

16 P

rope

rty,

Pla

nt a

nd E

quip

men

t an

d AASB 1

38 I

ntan

gibl

e Ass

ets

to:

01-J

an-1

6Th

e as

sess

men

t ha

s in

dica

ted

that

the

re is

no

expe

cted

impa

ct a

s th

e re

venu

e-ba

sed

met

hod

is n

ot

used

for

dep

reci

atio

n an

d am

ortisa

tion

.

[AASB 1

16 &

AASB 1

38]

e

stab

lish

the

prin

cipl

e fo

r th

e ba

sis

of

depr

ecia

tion

and

am

ortisa

tion

as

bein

g th

e ex

pect

ed p

atte

rn o

f co

nsum

ptio

n of

the

fut

ure

econ

omic

ben

efits

of a

n as

set;

p

rohi

bit

the

use

of r

even

ue‑ba

sed

met

hods

to

cal

cula

te t

he d

epre

ciat

ion

or a

mor

tisa

tion

of

an

asse

t, t

angi

ble

or in

tang

ible

, be

caus

e re

venu

e ge

nera

lly r

efle

cts

the

patt

ern

of e

cono

mic

ben

efits

that

are

gen

erat

ed f

rom

ope

rating

the

bus

ines

s,

rath

er t

han

the

cons

umpt

ion

thro

ugh

the

use

of

the

asse

t.

AASB 2

015‑

6 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Ext

endi

ng R

elat

ed P

arty

Dis

clos

ures

to

Not

-fo

r-Pr

ofit P

ublic

Sec

tor

Entities

[AASB 1

0, A

ASB 1

24 &

AASB 1

049]

AASB 1

5 Rev

enue

fro

m C

ontr

acts

with

Cus

tom

ers

The

core

pri

ncip

le o

f AASB 1

5 re

quir

es a

n en

tity

to

reco

gnis

e re

venu

e w

hen

the

entity

sat

isfie

s a

perf

orm

ance

obl

igat

ion

by t

rans

ferr

ing

a pr

omis

ed

good

or

serv

ice

to a

cus

tom

er.

As

at 3

0 Ju

ne 2

015,

the

fol

low

ing

stan

dard

s an

d in

terp

reta

tion

s ha

d be

en is

sued

by

the

AASB b

ut w

ere

not

yet

effe

ctiv

e.

They

bec

ome

effe

ctiv

e fo

r th

e fir

st f

inan

cial

sta

tem

ents

for

rep

orting

per

iods

co

mm

enci

ng a

fter

the

sta

ted

oper

ativ

e da

tes

as d

etai

led

in t

he t

able

bel

ow.

Nor

ther

n H

ealth

has

not

ado

pted

the

se s

tand

ards

in t

he p

repa

ration

of

the

2014

/15

Fina

ncia

l Acc

ount

s.

Cer

tain

new

Aus

tral

ian

acco

unting

sta

ndar

ds h

ave

been

pub

lishe

d th

at a

re n

ot m

anda

tory

for

the

30

June

201

5 re

port

ing

peri

od.

The

Dep

artm

ent

of T

reas

ury

and

Fina

nce

(DTF

) as

sess

es t

he im

pact

of

all

thes

e ne

w s

tand

ards

and

adv

ises

Nor

ther

n H

ealth

of t

heir

app

licab

ility

and

ear

ly a

dopt

ion

whe

re a

pplic

able

.

The

Am

endm

ents

ext

end

the

scop

e of

AASB 1

24

Rel

ated

Par

ty D

iscl

osur

es t

o no

t-fo

r-pr

ofit p

ublic

se

ctor

ent

itie

s.

A g

uida

nce

has

been

incl

uded

to

assi

st t

he a

pplic

atio

n of

the

Sta

ndar

d by

not

-for

-pr

ofit p

ublic

sec

tor

entities

.

01-J

an-1

6Th

e am

endi

ng s

tand

ard

will

res

ult

in e

xten

ded

disc

losu

res

on t

he e

ntity'

s ke

y m

anag

emen

t pe

rson

nel (

KM

P),

and

the

rela

ted

part

y tr

ansa

ctio

ns.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

18

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

8 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 1

9 of

58

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

ts

No

rth

ern

Hea

lth

An

nu

al R

epo

rt 2

01

4/

20

15

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s(u

) A

cco

un

tin

g E

rro

r

(v)

Cat

ego

ry g

rou

ps

(w)

Goi

ng

Con

cern

Emer

gen

cy D

epar

tmen

t S

ervi

ces

(ED

S)

com

pris

es a

ll em

erge

ncy

depa

rtm

ent

serv

ices

.

Nor

ther

n H

ealth

has

had

a co

rrec

tion

of

an e

rror

tha

t, a

s ou

tlin

ed in

Not

e 28

, ha

s re

sulted

in t

he r

esta

tem

ent

of P

rope

rty,

pla

nt a

nd e

quip

men

t an

d th

e re

clas

sific

atio

n of

cap

ital

con

trib

utio

n fu

ndin

g as

at

30 J

une

2014

.

The

goin

g co

ncer

n ba

sis

was

use

d to

pre

pare

the

fin

anci

al s

tate

men

ts.

The

Dep

artm

ent

of H

ealth

and

Hum

an S

ervi

ces

has

prov

ided

ass

uran

ces

to s

uppo

rt t

he o

ngoi

ng o

pera

tion

s an

d fin

anci

al

requ

irem

ents

of

Nor

ther

n H

ealth

and

to p

rovi

de N

orth

ern

Hea

lth

with

adeq

uate

cas

h flo

w s

uppo

rt t

o en

able

Nor

ther

n H

ealth

to m

eet

its

curr

ent

and

futu

re o

blig

atio

ns a

s an

d w

hen

thes

e fa

ll du

e fo

r a

peri

od u

p to

Sep

tem

ber

2016

sho

uld

this

be

requ

ired

.

Nor

ther

n H

ealth

has

used

the

fol

low

ing

cate

gory

gro

ups

for

repo

rtin

g pu

rpos

es f

or t

he c

urre

nt a

nd p

revi

ous

finan

cial

yea

rs.

Men

tal H

ealt

h S

ervi

ces

(Men

tal H

ealt

h)

com

pris

es a

ll sp

ecia

lised

men

tal h

ealth

serv

ices

pro

vidi

ng a

ran

ge o

f in

patien

t, c

omm

unity

base

d re

side

ntia

l, r

ehab

ilita

tion

and

am

bula

tory

ser

vice

s w

hich

tre

at

peop

le w

ith

men

tal i

llnes

s an

d th

eir

fam

ilies

and

car

ers.

The

se s

ervi

ces

aim

to

iden

tify

men

tal i

llnes

s ea

rly,

and

see

k to

red

uce

its

impa

ct t

hrou

gh p

rovi

ding

tim

ely

acut

e ca

re s

ervi

ces

and

appr

opri

ate

long

er-t

erm

acc

omm

odat

ion

and

supp

ort

for

thos

e liv

ing

with

a m

enta

l illn

ess.

No

n A

dm

itte

d S

ervi

ces

com

pris

es a

cute

and

sub

acut

e no

n ad

mitte

d se

rvic

es,

whe

re s

ervi

ces

are

deliv

ered

in p

ublic

hos

pita

l clin

ics

and

prov

ide

mod

els

of in

tegr

ated

com

mun

ity

care

, w

hich

sig

nific

antly

redu

ces

the

dem

and

for

hosp

ital

bed

s an

d su

ppor

ts t

he t

rans

itio

n fr

om h

ospi

tal t

o ho

me

in a

saf

e an

d tim

ely

man

ner.

Res

iden

tial

Ag

ed C

are

(RA

C)

refe

rred

to

in t

he p

ast

as p

sych

oger

iatr

ic r

esid

ential

ser

vice

s, c

ompr

ises

tho

se C

omm

onw

ealth-

licen

sed

resi

dent

ial a

ged

care

ser

vice

s.

Oth

er S

ervi

ces

no

t re

po

rted

els

ewh

ere

- (O

ther

) co

mpr

ises

ser

vice

s no

t se

para

tely

cla

ssifi

ed a

bove

, in

clud

ing:

Pub

lic H

ealth

Ser

vice

s in

clud

ing

labo

rato

ry t

esting

, bl

ood

born

e vi

ruse

s /

sexu

ally

tr

ansm

itte

d in

fect

ions

clin

ical

ser

vice

s, K

oori

s lia

ison

off

icer

s, im

mun

isat

ion

and

scre

enin

g se

rvic

es,

drug

s se

rvic

es in

clud

ing

drug

withd

raw

al,

coun

selli

ng a

nd t

he n

eedl

e an

d sy

ring

e pr

ogra

m,

Dis

abili

ty

serv

ices

incl

udin

g ai

ds a

nd e

quip

men

t an

d fle

xibl

e su

ppor

t pa

ckag

es t

o pe

ople

with

a di

sabi

lity,

Com

mun

ity

Car

e pr

ogra

ms

incl

udin

g se

xual

ass

ault s

uppo

rt,

earl

y pa

rent

ing

serv

ices

, pa

rent

ing

asse

ssm

ent

and

skill

s de

velo

pmen

t, a

nd v

ario

us s

uppo

rt s

ervi

ces.

H

ealth

and

Com

mun

ity

Initia

tive

s al

so f

alls

in t

his

cate

gory

gro

up.

Ag

ed C

are

com

pris

es a

ran

ge o

f in

hom

e, s

peci

alis

t ge

riat

ric,

res

iden

tial

car

e an

d co

mm

unity

base

d pr

ogra

ms

and

supp

ort

serv

ices

, su

ch a

s H

ome

and

Com

mun

ity

Car

e (H

ACC)

that

are

tar

gete

d to

old

er

peop

le,

peop

le w

ith

a di

sabi

lity,

and

the

ir c

arer

s.

Ad

mit

ted

Pat

ien

t S

ervi

ces

(Ad

mit

ted

Pat

ien

ts)

com

pris

es a

ll ac

ute

and

suba

cute

adm

itte

d pa

tien

t se

rvic

es,

whe

re s

ervi

ces

are

deliv

ered

in p

ublic

hos

pita

ls.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2014

-201

5 An

nual

Rep

ort

Page

19

of 5

8

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 2

0 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

14

/2

01

5

Oth

erTo

tal

Con

sol'd

20

15

20

15

20

15

20

15

20

15

20

15

20

15

$'0

00

$'0

00

$'0

00

$'0

00

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00

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00

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Gov

ernm

ent

Gra

nts

277,

581

28,3

44

27

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2,

297

10,6

53

-

34

6,11

9

In

dire

ct c

ontr

ibut

ions

by

Dep

artm

ent

of H

ealth

and

Hum

an S

ervi

ces

996

-

-

-

-

-

99

6

Patien

t an

d Res

iden

t Fe

es

14,9

51

11

7

-

54

0

87

-

15

,695

Pr

ivat

e Pr

actice

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s-

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-

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2,

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2,45

1

Com

mer

cial

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ivitie

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d Spe

cific

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pose

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ds-

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6,

577

6,57

7

D

onat

ions

and

Beq

uest

s (n

on c

apital

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-

-

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78

2

78

2

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oupm

ent

from

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te P

ract

ice

for

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Hos

pita

l Fac

ilities

2,02

5

-

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-

-

33

8

2,36

3

Oth

er R

even

ue f

rom

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rating

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ivitie

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l Rev

enu

e fr

om O

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ctiv

itie

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66

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er R

even

ue f

rom

Non

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rating

Act

ivitie

s-

-

-

-

-

5,

705

5,70

5

Tota

l Rev

enu

e fr

om N

on-O

per

atin

g A

ctiv

itie

s-

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9

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ital

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12

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ital

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t -

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-

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26

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l Cap

ital

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rpos

e In

com

e-

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1

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76

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l Rev

enu

e 2

97

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8,5

88

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12

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81

0,7

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29

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23

97

,01

8

Not

e 2

: A

nal

ysis

of

Con

solid

ated

Rev

enu

e b

y S

ourc

e

Ad

mit

ted

Pat

ien

tsN

onA

dm

itte

dED

S

Indi

rect

con

trib

utio

ns b

y D

epar

tmen

t of

Hea

lth

( 1

July

201

4 -

31 D

ec 2

014)

/ D

epar

tmen

t of

Hea

lth

and

Hum

an S

ervi

ces

(DH

HS)

(1 J

an 2

015

- 30

Jun

e 20

15)

Dep

artm

ent

of H

ealth

/ D

epar

tmen

t of

Hea

lth

and

Hum

an S

ervi

ces

mak

es c

erta

in p

aym

ents

on

beha

lf of

Nor

ther

n H

ealth

such

a M

edic

al I

ndem

nity

Ins

uran

ce.

Thes

e am

ount

s ha

ve b

een

brou

ght

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val

ue

mea

sure

men

t h

iera

rch

y fo

r as

sets

as

at 3

0 J

un

e 2

01

5

Leve

l 1 (1

)Le

vel 2

(1)

Leve

l 3 (1

)

Lan

d a

t fa

ir v

alu

eN

on-s

peci

alis

ed la

nd (

iii)

1,53

8

-

1,53

8

-

Spe

cial

ised

land

(ii)

45

,810

-

-

45,8

10

To

tal o

f la

nd

at

fair

val

ue

47,3

48

-

1,53

8

45

,810

Bu

ildin

gs

at f

air

valu

eSpe

cial

ised

bui

ldin

gs31

0,78

3

-

49,0

09

26

1,77

4

Tota

l of

bu

ildin

g a

t fa

ir v

alu

e31

0,78

3

-

49,0

09

26

1,77

4

Non

Med

ical

Eq

uip

men

t an

d V

ehic

les

at f

air

valu

eN

on M

edic

al E

quip

men

t an

d Veh

icle

s at

fai

r va

lue

- Veh

icle

s (i

v)42

0

-

-

420

- N

on M

edic

al E

quip

men

t (i

v)5,

216

-

-

5,21

6

To

tal o

f N

on M

edic

al E

qu

ipm

ent

and

Veh

icle

s at

fai

r va

lue

5,63

6

-

-

5,63

6

Med

ical

eq

uip

men

t at

fai

r va

lue

Med

ical

equ

ipm

ent

at fai

r va

lue

(iv

)16

,340

-

-

16,3

40

To

tal M

edic

al e

qu

ipm

ent

at f

air

valu

e16

,340

-

-

16,3

40

Art

wor

ks a

t fa

ir v

alu

eArt

wor

ks (v

)46

8

-

468

-

Tota

l Art

wor

ks a

t fa

ir v

alu

e46

8

-

468

-

Ass

ets

un

der

con

stru

ctio

n a

t fa

ir v

alu

eAss

ets

unde

r co

nstr

uction

10,8

76

-

-

10,8

76

To

tal a

sset

s u

nd

er c

onst

ruct

ion

at

fair

val

ue

10,8

76

-

-

10,8

76

39

1,4

51

-

5

1,0

15

3

40

,43

6

N

ote

:

Non

-sp

ecia

lised

lan

d

Veh

icle

s

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

(i) C

lass

ified

in a

ccor

danc

e w

ith

the

fair v

alue

hie

rarc

hy,

see

Not

e 1(

b).

An

inde

pend

ent

valu

atio

n of

Nor

ther

n H

ealth’

s sp

ecia

lised

land

and

spe

cial

ised

bui

ldin

gs w

as p

erfo

rmed

by

the

Val

uer-

Gen

eral

Vic

toria.

The

val

uation

was

per

form

ed u

sing

the

mar

ket

appr

oach

ad

just

ed for

CSO

. Th

e ef

fect

ive

date

of th

e va

luat

ion

is 3

0 Ju

ne 2

014.

Car

ryin

g a

mou

nt

as

at 3

0 J

un

e 2

01

5

Fair

val

ue

mea

sure

men

t at

en

d o

f re

por

tin

g p

erio

d u

sin

g:

(ii)

Nor

ther

n H

ealth

acqu

ires

new

veh

icle

s an

d at

tim

es d

ispo

ses

of t

hem

bef

ore

com

plet

ion

of t

heir e

cono

mic

life

. Th

e pr

oces

s of

acq

uisi

tion

, us

e an

d di

spos

al in

the

mar

ket

is m

anag

ed b

y N

orth

ern

Hea

lth

who

set

rel

evan

t de

prec

iation

rat

es d

urin

g us

e to

ref

lect

the

con

sum

ptio

n of

the

veh

icle

s. A

s a

resu

lt,

the

fair v

alue

of ve

hicl

es d

oes

not

differ

mat

eria

lly fro

m t

he c

arry

ing

valu

e (d

epre

ciat

ed

cost

).

(ii)

For

non-

spec

ialis

ed la

nd,

an in

depe

nden

t va

luat

ion

was

per

form

ed b

y th

e Val

uer-

Gen

eral

Vic

toria

to d

eter

min

e th

e fa

ir v

alue

usi

ng t

he m

arke

t ap

proa

ch.

Val

uation

of th

e as

sets

was

det

erm

ined

by

anal

ysin

g co

mpa

rabl

e sa

les

and

allo

win

g fo

r sh

are,

siz

e, t

opog

raph

y, lo

cation

and

oth

er r

elev

ant

fact

ors

spec

ific

to t

he a

sset

bei

ng v

alue

d. A

n ap

prop

riat

e ra

te p

er s

quar

e m

etre

has

bee

n ap

plie

d to

th

e su

bjec

t as

set.

The

effec

tive

dat

e of

the

val

uation

is 3

0 Ju

ne 2

014.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

32 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 3

2 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 3

3 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

4/

20

15

Med

ical

an

d N

on M

edic

al E

qu

ipm

ent

Art

wor

ks

For

all a

sset

s m

easu

red

at fai

r va

lue,

the

cur

rent

use

is c

onsi

dere

d th

e hi

ghes

t an

d be

st u

se.

(c)

Fair

val

ue

mea

sure

men

t h

iera

rch

y fo

r as

sets

as

at 3

0 J

un

e 2

01

4

Leve

l 1 (1

)Le

vel 2

(1)

Leve

l 3 (1

)

Lan

d a

t fa

ir v

alu

eN

on-s

peci

alis

ed la

nd1,

538

-

1,53

8

-

Spe

cial

ised

land

45,8

10

-

-

45,8

10

To

tal o

f la

nd

at

fair

val

ue

47,3

48

-

1,53

8

45

,810

Bu

ildin

gs

at f

air

valu

eSpe

cial

ised

bui

ldin

gs29

6,12

4

-

18,4

63

27

7,80

6

Tota

l of

bu

ildin

g a

t fa

ir v

alu

e29

6,12

4

-

18,4

63

27

7,80

6

Pla

nt

and

Non

Med

ical

eq

uip

men

t at

fai

r va

lue

Plan

t eq

uipm

ent

and

vehi

cles

at

fair v

alue

- Veh

icle

s (i

i)29

5

-

295

- Pl

ant

and

non

med

ical

equ

ipm

ent

(iii)

4,30

0

-

-

4,30

0

Tota

l of

pla

nt,

eq

uip

men

t an

d v

ehic

les

at f

air

valu

e4,

595

-

-

4,59

5

Med

ical

eq

uip

men

t at

fai

r va

lue

Med

ical

equ

ipm

ent

at fai

r va

lue

(iii

)17

,127

-

-

17,1

27

To

tal M

edic

al e

qu

ipm

ent

at f

air

valu

e17

,127

-

-

17,1

27

Art

wor

ks a

t fa

ir v

alu

eArt

wor

ks (i

v)46

8

-

468

-

Tota

l Art

wor

k at

fai

r va

lue

468

-

468

-

Ass

ets

un

der

con

stru

ctio

n a

t fa

ir v

alu

eAss

ets

unde

r co

nstr

uction

27,1

46

-

-

27,1

46

To

tal a

sset

s u

nd

er c

onst

ruct

ion

at

fair

val

ue

27,1

46

-

-

27,1

46

39

2,8

08

-2

0,4

69

37

2,4

84

Car

ryin

g a

mou

nt

as

at 3

0 J

un

e 2

01

4Fa

ir v

alu

e m

easu

rem

ent

at e

nd

of

rep

orti

ng

per

iod

usi

ng

:

Ther

e ha

ve b

een

no t

rans

fers

bet

wee

n le

vels

dur

ing

the

period

.

(iii)

Non

med

ical

equ

ipm

ent

and

med

ical

equ

ipm

ent

is h

eld

at c

arry

ing

valu

e (d

epre

ciat

ed c

ost)

. W

hen

the

equi

pmen

t is

spe

cial

ised

in u

se,

such

tha

t it is

rar

ely

sold

oth

er t

han

as p

art

of a

goi

ng

conc

ern,

the

dep

reci

ated

rep

lace

men

t co

st is

use

d to

est

imat

e th

e fa

ir v

alue

. U

nles

s th

ere

is m

arke

t ev

iden

ce t

hat

curr

ent

repl

acem

ent

cost

s ar

e si

gnifi

cant

ly d

iffer

ent

from

the

origi

nal a

cqui

sition

co

st,

it is

con

side

red

unlik

ely

that

dep

reci

ated

rep

lace

men

t co

st w

ill b

e m

ater

ially

diff

eren

t fr

om t

he e

xist

ing

carr

ying

val

ue.

Ther

e w

ere

no c

hang

es in

val

uation

tec

hniq

ues

thro

ugho

ut t

he p

erio

d to

30

June

201

5.

(iv)

For

art

wor

k, v

alua

tion

of th

e as

sets

is d

eter

min

ed b

y a

com

pariso

n to

sim

ilar

exam

ples

of th

e ar

tist

s w

ork

in e

xist

ence

thr

ough

out

Aus

tral

ia a

nd r

esea

rch

on p

rice

pai

d fo

r si

mila

r ex

ampl

es

offe

red

at a

uction

or

thro

ugh

art

galle

ries

in r

ecen

t ye

ars.

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

33 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 3

4 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

4/

20

15

(d)

Rec

onci

liati

on o

f Le

vel 3

fai

r va

lue

30

Ju

ne

20

15

Res

tate

d O

pen

ing

Bal

ance

45

,81

02

77

,80

64

,30

01

7,1

27

29

52

7,1

46

37

2,4

84

Pu

rcha

ses

/ (D

ispo

sals

)-

-

2,22

8

2,40

6

229

(16,

270)

(11,

407)

Tran

sfer

s In

/ (

Out

) of

Lev

el 3

-

-

-

-

-

-

-

Gai

ns o

r lo

sses

rec

o gni

sed

in n

et r

esul

t-

Dep

reci

atio

n-

(16,

032)

(1,3

12)

(3,1

93)

(104

)

-

(20,

641)

Su

bto

tal

45

,81

02

61

,77

45

,21

61

6,3

40

42

01

0,8

76

34

0,4

36

It

ems

reco

gnis

ed in

oth

er c

ompr

ehen

sive

inco

me

- Rev

alua

tion

-

-

-

-

-

-

-

Clo

sin

g B

alan

ce4

5,8

10

26

1,7

74

5

,21

6

16

,34

0

4

20

10

,87

6

3

40

,43

6

(d)

Rec

onci

liati

on o

f Le

vel 3

fai

r va

lue

30

Ju

ne

20

14

Op

enin

g B

alan

ce3

7,7

86

20

6,9

10

6,1

43

16

,14

82

21

5,9

69

28

2,9

78

Pu

rcha

ses

/ (D

ispo

sals

)(1

73)

-

2,53

2

3,61

9

350

15,4

20

21,7

48

Tran

sfer

s In

/ (

Out

) of

Lev

el 3

3,60

6

511

126

-

(4,2

43)

-

Gai

ns o

r lo

sses

rec

ogni

sed

in n

et r

esul

t-

- D

epre

ciat

ion

-

(17,

229)

(1,6

75)

(2,6

74)

(77)

-

(21,

655)

Su

bto

tal

37

,61

31

93

,28

77

,51

11

7,2

19

29

52

7,1

46

28

3,0

71

Item

s re

cogn

ised

in o

ther

com

preh

ensi

ve in

com

e-

Rev

alua

tion

8,19

7

84,5

19

-

-

-

-

92,7

16

Su

bto

tal

Res

tate

men

t of

:-

PP a

nd E

rev

alua

tion

Inc

rem

ents

/(de

crem

ent)

-

-

(2,6

56)

(49)

-

-

(2,7

05)

- PP

and

E r

eval

uation

write

dow

n -

-

(530

)

(68)

-

-

(598

)

- N

et a

dditio

ns/d

ispo

sal b

etw

een

clas

ses

-

-

(25)

25

-

-

-

Clo

sin

g B

alan

ce4

5,8

10

27

7,8

06

4

,30

0

17

,12

7

2

95

27

,14

6

3

72

,48

4

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

Tota

l

Ther

e ha

ve b

een

no t

rans

fers

bet

wee

n le

vels

dur

ing

the

period

.

Lan

dB

uild

ing

sN

on M

edic

al

Equ

ipm

ent

Med

ical

equ

ipm

ent

Mot

or V

ehic

les

Ass

ets

un

der

co

nst

ruct

ion

Ass

ets

un

der

co

nst

ruct

ion

Tota

l

Ther

e ha

ve b

een

no t

rans

fers

bet

wee

n le

vels

dur

ing

the

period

.

Lan

dB

uild

ing

s

Pla

nt

and

Non

M

edic

aleq

uip

men

tM

edic

aleq

uip

men

tM

otor

Veh

icle

s

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

34 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 3

4 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 3

5 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

14

/2

01

5

(e)

Des

crip

tion

of

sig

nif

ican

t u

nob

serv

able

inp

uts

to

Leve

l 3 v

alu

atio

ns:

Sp

ecia

lised

lan

d M

arke

t ap

proa

ch

Com

mun

ity

Ser

vice

Obl

igat

ion

(CSO

) ad

just

men

t 1

0 -

25%

(19

%)

(i)

10

- 25

% (

19%

) (i

) A

sig

nific

ant

incr

ease

or

decr

ease

in t

he C

SO

ad

just

men

t w

ould

res

ult

in a

sig

nific

antly

low

er

(hig

her)

fai

r va

lue

Non

- s

pec

ialis

ed la

nd

Mar

ket

appr

oach

N

/A

$1,

033

- $2

,291

/m2

($1,

750)

$

1,03

3 -

$2,2

91/m

2 ($

1,75

0)

A s

igni

fican

t in

crea

se o

r de

crea

se in

direc

t co

st

per

squa

re m

eter

adj

ustm

ent

wou

ld r

esul

t in

a

sign

ifica

ntly

hig

her

or lo

wer

fai

r va

lue

Sp

ecia

lised

bu

ildin

gs

Dep

reci

ated

re

plac

emen

t co

st

Direc

t co

st p

er s

quar

e m

etre

$

477

- $8

88/m

2 ($

583)

$

477

- $8

88/m

2 ($

583)

A

sig

nific

ant

incr

ease

or

decr

ease

in d

irec

t co

st

per

squa

re m

eter

adj

ustm

ent

wou

ld r

esul

t in

a

sign

ifica

ntly

hig

her

or lo

wer

fai

r va

lue

Use

ful l

ife o

f sp

ecia

lised

bu

ildin

gs

5 -

53

year

s (2

9 ye

ars)

5

- 5

3 ye

ars

(29

year

s)

A s

igni

fican

t in

crea

se o

r de

crea

se in

the

es

tim

ated

use

ful l

ife o

f th

e as

set

wou

ld r

esul

t in

a

sign

ifica

ntly

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carr

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ount

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rat

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Expo

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, N

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Hea

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ly e

ven

mat

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prof

iles.

Cas

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Hea

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orth

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Hea

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ts w

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tive

ly e

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mat

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prof

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gnifi

cant

am

ount

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anci

al

inst

rum

ents

at

float

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rate

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t ha

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cial

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Not

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le P

erso

ns

from

th

e re

por

tin

g e

nti

ty a

mou

nte

d t

o:

The

Hon

oura

ble

Jill

Hen

ness

y, M

inis

ter

for

Hea

lth

and

Am

bula

nce

Ser

vice

s4/

12/2

014

- 30

/06/

2015

Not

e 2

2a:

Res

pon

sib

le P

erso

ns

Dis

clos

ure

s

Per

iod

In a

ccor

danc

e w

ith

the

Min

iste

rial

Direc

tion

s is

sued

by

the

Min

iste

r fo

r Fi

nanc

e un

der

the

Fina

ncia

l Man

agem

ent

Act

199

4, t

he f

ollo

win

g di

sclo

sure

s ar

e m

ade

rega

rdin

g re

spon

sibl

e pe

rson

s fo

r th

e re

port

ing

period

.

Res

pon

sib

le M

inis

ters

The

Hon

oura

ble

Dav

id D

avie

s, M

LC,

Min

iste

r fo

r H

ealth

and

Age

ing

1/07

/201

4 -

3/12

/201

4

1/07

/201

4 -

30/0

6/20

15

Ms

Jenn

ifer

Will

iam

s (C

hair,

App

oint

ed 1

Jul

y 20

15)

1/07

/201

4 -

30/0

6/20

15

1/07

/201

4 -

30/0

6/20

15

Gov

ern

ing

Boa

rd

Ms

Mar

ilyn

Bea

umon

t (C

hair,

Term

Exp

ired

on

30 J

une

2015

)1/

07/2

014

- 30

/06/

2015

Ms

Sab

ine

Phill

ips

1/07

/201

4 -

30/0

6/20

15

1/07

/201

4 -

30/0

6/20

151/

07/2

014

- 30

/06/

2015

1/07

/201

4 -

30/0

6/20

15

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

53 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

4 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

4/

20

15

Exec

uti

ve O

ffic

ers'

Rem

un

erat

ion

20

15

20

14

20

15

20

14

$140

,000

– $

149,

999

-1

-1

$180

,000

– $

189,

999

--

-1

$190

,000

– $

199,

999

12

-1

$200

,000

– $

209,

999

--

1-

$210

,000

– $

219,

999

--

-1

$220

,000

– $

229,

999

21

1-

$230

,000

– $

239,

999

2-

21

$240

,000

– $

249,

999

1-

11

$250

,000

– $

259,

999

-2

--

$260

,000

– $

269,

999

--

1-

$380

,000

– $

389,

999

-1

--

$390

,000

– $

399,

999

11

11

Tota

l Nu

mb

er o

f Ex

ecu

tive

s7

87

7

Tota

l an

nu

alis

ed e

mp

loye

e eq

uiv

alen

t (A

EE)

(a)

77

77

Tota

l Rem

un

erat

ion

1,8

98

,86

5$

1

,99

4,6

91

$

1,8

26

,04

2$

1

,59

4,6

66

$

Not

e 2

2b

: Ex

ecu

tive

Off

icer

Dis

clos

ure

s

The

num

bers

of

exec

utiv

e of

ficer

s, o

ther

tha

n M

inis

ters

and

Acc

ount

able

Off

icer

s, a

nd t

heir t

otal

rem

uner

atio

n du

ring

the

rep

orting

per

iod

are

show

n in

the

sch

edul

e be

low

in t

heir

rele

vant

inco

me

band

s.

The

tota

l rem

uner

atio

n of

exe

cutive

off

icer

s is

sho

wn

in t

he f

irst

and

sec

ond

colu

mns

. It

com

pris

es a

ll m

oney

, co

nsid

erat

ion

and

bene

fits

rece

ived

or

rece

ivab

le b

y th

e ex

ecut

ive

offic

ers.

The

bas

e re

mun

erat

ion

of e

xecu

tive

off

icer

s is

sho

wn

in t

he t

hird

and

fou

rth

colu

mns

. Bas

e re

mun

erat

ion

com

pris

es s

alar

ies,

sup

eran

nuat

ion

and

the

gros

sed-

up r

epor

tabl

e fr

inge

ben

efits

to e

xecu

tive

off

icer

s fr

om s

alar

y pa

ckag

ing.

Bas

e re

mun

erat

ion

is e

xclu

sive

of

bonu

s pa

ymen

ts,

long

-ser

vice

leav

e pa

ymen

ts,

redu

ndan

cy p

aym

ents

and

ret

irem

ent

bene

fits.

Exe

cutive

Off

icer

s w

ith

rem

uner

atio

n pa

ckag

es in

exc

ess

of $

100,

000

who

hav

e co

mm

ence

d or

cea

sed

empl

oym

ent

with

Nor

ther

n H

ealth

during

the

yea

r ha

ve b

een

incl

uded

in

the

fol

low

ing

deta

ils.

Con

solid

ated

Tota

l Rem

un

erat

ion

Bas

e R

emu

ner

atio

n

(a)

Ann

ualis

ed e

mpl

oyee

equ

ival

ent

is b

ased

on

wor

king

38

ordi

nary

hou

rs p

er w

eek

over

the

rep

orting

per

iod.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

54 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

4 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

5 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

4/

20

15

Con

sol'd

Con

sol'd

20

15

20

14

$'0

00

$'0

00

Vic

tori

an A

ud

itor

-Gen

eral

's O

ffic

eAud

it a

nd r

evie

w o

f fin

anci

al s

tate

men

t73

77

Tota

l Rem

un

erat

ion

of

Au

dit

ors

73

77

Con

sol'd

Con

sol'd

20

15

20

14

$'0

00

$'0

00

Nor

ther

n H

ealt

h h

as m

ade

the

follo

win

g e

x-g

rati

a ex

pen

ses

: Pa

ymen

ts a

ssoc

iate

d w

ith

empl

oyee

dep

artu

re s

epar

atio

n ar

rang

emen

ts31

3

-

Tota

l ex-

gra

tia

exp

ense

s 3

13

-

Not

e 2

5:

Eve

nts

Occ

urr

ing

aft

er t

he

Bal

ance

Nam

e of

en

tity

Cou

ntr

y of

in

corp

orat

ion

Equ

ity

Hol

din

g

Nor

ther

n H

ealth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Fo

unda

tion

Ltd

Aus

tral

iaLi

mited

by

Gua

rant

ee

Nor

ther

n H

ealth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Tr

ust

Aus

tral

ian/

a

Not

e 2

3:

Rem

un

erat

ion

of

Au

dit

ors

Sub

sequ

ent

to 3

0 Ju

ne 2

015

Ms

Jenn

ifer

Will

iam

s ha

s be

en a

ppoi

nted

as

the

Cha

ir o

f th

e N

orth

ern

Hea

lth

Boa

rd e

ffec

tive

1 J

uly

2015

.

Not

e 2

6:

Con

trol

led

En

titi

es

Not

e 2

4:

Ex-

gra

tia

exp

ense

s

Sub

sequ

ent

to 3

0 Ju

ne 2

015

Ms

Jane

t Com

pton

res

igne

d as

the

Chi

ef E

xecu

tive

Off

icer

. Th

e N

orth

ern

Hea

lth

Boa

rd a

ppoi

nted

Mr

Rob

ert

Bur

nham

as

the

Act

ing

Chi

ef E

xecu

tive

Off

icer

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

55 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

6 of

58

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

4/

20

15

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t

A r

eallo

cation

bet

wee

n as

set

clas

ses

of $

0.54

mill

ion.

Oth

er li

abili

ties

(In

com

e in

Ad

van

ce)

Not

e 2

7:

Eco

nom

ic D

epen

den

cy

The

finan

cial

per

form

ance

and

pos

itio

n of

Nor

ther

n H

ealth

has

decl

ined

sin

ce t

he p

rior

yea

r. N

orth

ern

Hea

lth

has

repo

rted

a d

efic

it n

et r

esul

t be

fore

cap

ital

and

spe

cific

item

s of

$8.

78

mill

ion

com

pare

d to

a s

urpl

us o

f $1

.28

mill

ion

in 2

014,

a n

et c

urre

nt li

abili

ty p

ositio

n of

$63

.04

mill

ion

com

pare

d w

ith

$45.

13 m

illio

n in

201

4. T

his

has

resu

lted

in a

cur

rent

ass

et r

atio

of

0.24

(20

14:

0.43

) an

d a

cont

inue

d ca

sh o

utflo

w f

rom

ope

ration

s of

$5.

45 m

illio

n, c

ompa

red

with

a ca

sh in

flow

of

$2.6

1 m

illio

n in

201

4.

As

a re

sult o

f th

e de

clin

e in

the

fin

anci

al in

dica

tors

, N

orth

ern

Hea

lth

has

obta

ined

a le

tter

of

supp

ort

from

the

Sta

te G

over

nmen

t an

d in

par

ticu

lar

DH

HS,

conf

irm

ing

that

the

Dep

artm

ent

will

con

tinu

e to

pro

vide

Nor

ther

n H

ealth

adeq

uate

cas

h flo

w t

o m

eet

its

curr

ent

and

futu

re o

blig

atio

ns u

p to

Sep

tem

ber

2016

. A le

tter

was

als

o ob

tain

ed f

or t

he p

revi

ous

finan

cial

yea

r. O

n th

at b

asis

, th

e fin

anci

al s

tate

men

ts h

ave

been

pre

pare

d on

a g

oing

con

cern

bas

is.

Nor

ther

n H

ealth

is c

omm

itte

d to

the

con

tinu

ed r

evie

w o

f its

finan

cial

and

ope

rating

per

form

ance

with

a vi

ew t

o id

entify

ing

furt

her

cost

sav

ing

initia

tive

s an

d re

venu

e ge

nera

ting

op

port

unitie

s an

d pr

ovid

ing

the

mos

t ef

fect

ive

and

effic

ient

ser

vice

del

iver

y m

odel

witho

ut c

ompr

omis

ing

patien

t ca

re a

nd q

ualit

y of

ser

vice

del

iver

y. A

n on

-goi

ng b

udge

t st

rate

gy h

as

been

initia

ted

by t

he M

anag

emen

t of

Nor

ther

n H

ealth

whi

ch h

as id

entifie

d a

num

ber

of b

usin

ess

initia

tive

s to

bet

ter

man

age

the

avai

labl

e fin

anci

al r

esou

rces

.

Not

e 2

8:

Cor

rect

ion

of

erro

r an

d r

evis

ion

of

esti

mat

es

Nor

ther

n H

ealth

final

ised

a s

tock

take

of

its

asse

ts,

incl

udin

g a

revi

ew o

f us

eful

live

s pe

rtai

ning

to

its

build

ing

valu

atio

n pe

rfor

med

in N

ovem

ber

2014

. Th

is r

evie

w h

as r

esul

ted

in a

n ov

eral

l $3

.30

mill

ion

prio

r ye

ar c

ompa

rative

res

tate

men

t fo

r Pr

oper

ty,

Plan

t an

d Eq

uipm

ent.

The

se f

ixtu

res

shou

ld h

ave

been

cap

ital

ised

into

the

Bui

ldin

g as

set

clas

s an

d no

t fo

rmed

par

t of

the

Pl

ant

and

Equi

pmen

t as

set

clas

s re

port

ed in

the

201

3-14

Fin

anci

al A

ccou

nts.

The

err

or h

as b

een

corr

ecte

d by

res

tating

eac

h of

the

aff

ecte

d fin

anci

al s

tate

men

t lin

e item

s fo

r th

e pr

ior

period

s as

fol

low

s:

Ove

rsta

tem

ent

of A

sset

Rev

alua

tion

res

erve

for

201

3-20

14 f

inan

cial

yea

r by

$2.

7 m

illio

n le

adin

g a

nd a

cor

resp

ondi

ng $

2.7

mill

ion

over

stat

emen

t of

net

ass

ets

and

accu

mul

ated

de

prec

iation

. O

vers

tate

men

t of

Ass

ets

and

Acc

umul

ated

dep

reci

atio

n in

rel

atio

n to

30

June

201

4 fin

anci

al y

ear

of $

0.59

mill

ion,

lead

ing

to a

n Pr

oper

ty,

Plan

t an

d Eq

uipm

ent

write

-dow

n of

$0.

59 a

nd

the

over

stat

emen

t of

the

201

3-14

acc

umul

ated

def

icit.

A r

evie

w o

f th

e N

orth

ern

Hea

lth

agre

emen

t to

con

stru

ct a

nd o

pera

te a

new

Tea

chin

g Tr

aini

ng R

esea

rch

Faci

lity,

has

res

ulte

d in

prior

yea

r co

mpa

rative

s fo

r Con

trib

utio

n Cap

ital

Fun

ding

be

ing

rest

ated

with

resp

ect

to c

ontr

ibut

ions

fro

m t

he U

nive

rsity

of M

elbo

urne

(U

oM)

and

LaTr

obe

Uni

vers

ity

(LTU

). T

he c

ontr

ibut

ions

fro

m U

oM a

nd L

TU o

f $1

4.4

mill

ion

($7.

2 m

illio

n re

spec

tive

ly)

have

bee

n re

clas

sifie

d as

ren

tal i

ncom

e in

adv

ance

(O

ther

liab

ilities

) to

be

amor

tise

d ov

er t

he li

fe o

f th

e op

erat

ing

leas

e (2

1yea

rs).

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

14-2

015

Ann

ual R

epor

tP

age

56 o

f 58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

7 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

6 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

8 of

58

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

4 -

2015

Ann

ual R

epor

t Pa

ge 5

8 of

58

THIS

PA

GE

HA

S B

EE

N IN

TEN

TIO

NA

LLY

LEFT

BLA

NK

THIS

PA

GE

HA

S B

EE

N IN

TEN

TIO

NA

LLY

LEFT

BLA

NK

2015 Research Abstract

Broadmeadows Health Service 35 Johnstone Street Broadmeadows Vic 3074 T. (03) 8345 5000 F. (03) 8345 5655

Bundoora Extended Care Centre 1231 Plenty Road Bundoora Vic 3083 T. (03) 9495 3100 F. (03) 9467 4365

Craigieburn Health Service 274-304 Craigieburn Road Craigieburn Vic 3064 T. (03) 8338 3000 F. (03) 8338 3110

Panch Health Service 300 Bell Street Preston Vic 3072 T. (03) 9485 9000 F. (03) 9485 9010

The Northern Hospital 185 Cooper Street Epping Vic 3076 T. (03) 8405 8000 F. (03) 8405 8524

2014-15 annual report - parliament of victoria...northern health annual report 2014 - 15 – 2 – c...

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