financial services · 46 colac area health financial statements operating statement for the year...

Colac Area Health42

From a fi nancial perspective, this past year has again been a challenge for Colac Area Health. Although the reported result in 2005/2006 was a surplus, removing the impact of a revaluation increment and capital items, the operating result was a signifi cant defi cit.

For 2006/2007 we have reported a surplus of $0.638m. This result includes capital revenue and unfunded depreciation. In order to understand our “underlying operating result”, these items need to be excluded, resulting in a surplus of $0.130m. Included in this fi gure is an amount of $1.5m of additional support from the Department of Human Services. Had this support not been received, our result would have been an operating defi cit of $1.37m.

We are in the process of developing plans to reduce or eliminate this operating defi cit. The Board of Directors and the Executive Management Team have spent signifi cant time on this task. Staff have been actively involved in providing ideas and potential solutions and are to be commended for their input.

Although a negative underlying operating result was recorded for the year, there have been many positive outcomes during the period:

There has been an increase in occupancy in Corangamarah our Residential Aged Care facility. Occupancy levels have been consistently around 99%. There is a continuing focus on maintaining occupancy levels to both ensure the fi nancial viability of the facility and to provide maximum availability of accommodation for members of the community.

Although remaining under target, there has been a signifi cant increase in workload in our Acute Care Unit. As reported in last year’s annual report, 2005/2006 saw some of the funding that Colac Area Health was unable to utilise used to treat patients at Barwon Health in Geelong. In 2006/2007, we were able to retain this funding and have been able to increase our surgical workload quite signifi cantly. This has reduced the funding “recall” to the Department of Human

Services, and we believe we will be able to continue this improvement into 2007/2008.

We have implemented an entity wide budgeting system to assist with management of our fi nancial situation. We are now providing managers with some of the tools they need to understand and manage the fi nancial aspects of their departments. This initiative has been enthusiastically taken up by our managers.

Once again, all staff at Colac Area Health have shown a commitment to providing excellent care to the Colac Otway community, and have also demonstrated their willingness to assist in the fi nancial recovery of the organisation. We would also like to acknowledge the assistance and support from the staff at the Department of Human Services, both from the regional offi ce in Geelong, and to those from the Melbourne central offi ce.

Garry EllisDirector Corporate Services

All staff at Colac Area Health have demonstrated their willingness to assist in the fi nancial recovery of the organisation. Garry Ellis (above) commenced in the role as Director Corporate Services in December, 2006.

Financial Services

43 Annual and Quality of Care Report 2007

Certifi cation

Auditor-General’s Report

Colac Area Health44

Colac Area Health46

Financial Statements

Operating Statement for the year ended 30 June 2007

Notes Total Total

2007 2006

$’000 $’000

Revenue from Operating Activities 2 27,483 25,581

Revenue from Non-Operating Activities 2 91 416

Employee Benefi ts 2b (18,454) (18,425)

Non Salary Labour Costs 2b (2,102) (1,817)

Supplies and Consumables 2b (2,895) (2,924)

Other Expenses from Continuing Operations 2b (3,905) (3,439)

Share of Net Result of Associates and Joint Ventures Accounted for using the Equity Model 2b,7 (88) (38)

Net Result Before Capital and Specific Items 130 (646)

Capital Purpose Income 2 1,848 8,501

Depreciation 3 (1,340) (1,235)

NET RESULT FOR THE PERIOD 638 6,620

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


Balance Sheet as at 30 June 2007

Notes Total Total

2007 2006

$’000 $’000

ASSETS

Current Assets

Cash and Cash Equivalents 4 2,298 1,647

Receivables 5 423 799

Inventory 6 149 167

Total Current Assets 2,870 2,613

Non-Current Assets

Investment in Joint Venture using Equity Method 7 156 245

Receivables 5 128 677

Property, Plant and Equipment 8 39,752 38,288

Total Non-Current Assets 40,036 39,210

TOTAL ASSETS 42,906 41,823

LIABILITIES

Current Liabilities

Payables 9 1,128 978

Provisions 10 3,812 3,490

Other Liabilities 11 557 544

Total Current Liabilities 5,497 5,012

Non-Current Liabilities

Provisions 10 1,086 1,785

Total Non-Current Liabilities 1,086 1,785

TOTAL LIABILITIES 6,583 6,797

NET ASSETS 36,323 35,026

EQUITY

Asset Revaluation Reserve 12a 7,969 7,845

Contributed Capital 12b 13,823 13,288

Accumulated Surplus/(Defi cit) 12c 14,531 13,893

TOTAL EQUITY 12d 36,323 35,026


Colac Area Health48

Statement of Changes in Equity for the year ended

30 June 2007Notes Total Total

2007 2006

$’000 $’000

Total Equity at beginning of financial year 35,026 22,454

Gain/(Loss) on Asset Revaluation 12a 0 5,602

Reversal of Provision for Re-instatement 12a 124 0

NET INCOME RECOGNISED DIRECTLY IN EQUITY 124 5,602

Net Result for Year 638 6,620

TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR 762 12,222

Contributed Capital Received 12b 535 350

CLOSING BALANCE 36,323 35,026


Financial Statements


Cash Flow Statement for the year ended 30 June 2007

Notes Total Total

2007 2006

$’000 $’000

Inflows/ Inflows/

(Outflows) (Outflows)

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 21,651 22,968

Patient and Resident Fees Received 4,964 4,528

GST Recovered from ATO 1,264 1,536

Donations and Bequests Received 307 331

Interest Received 109 45

Other Receipts 1,179 932

Employee Benefi ts Paid (18,077) (18,574)

Fee for Service Medical Offi cers (2,102) (1,998)

GST Paid to ATO (2,470) (2,897)

Payments for Supplies and Consumables (5,459) (6,998)

CASH GENERATED FROM OPERATIONS 1,366 (127)

Capital Grants from Government 1,541 9,337

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 13 2,907 9,210

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant and Equipment (2,996) (8,776)

Proceeds from Sale of Property, Plant and Equipment 205 71

Purchase of Investments (38) 0

Proceeds from Sale of Investments 0 78

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (2,829) (8,627)

CASH FLOWS FROM FINANCING ACTIVITIES

Contributed Capital from Government 535 350

NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES 535 350

NET INCREASE/(DECREASE) IN CASH HELD 613 933

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,485 552

CASH AND CASH EQUIVALENTS AT END OF PERIOD 4 2,098 1,485

This statement should be read in conjunction with the accompanying Notes.

Colac Area Health Notes to the Financial Statements 30 June 2007

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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe general purpose fi nancial report has been prepared on an accrual basis in accordance with the Financial Management Act 1994, Accounting Standards issued by the Australian Accounting Standards Board, and Urgent Issues Group Interpretations. Accounting Standards include Australian equivalents to International Financial Reporting Standards (A-IFRS).

The fi nancial statements were authorised for issue by Geoff Iles, Chief Executive Offi cer on 22 August 2007.

Basis of preparationThe fi nancial report is prepared in accordance with the historical cost convention, except for the revaluation of certain non-current assets and fi nancial instruments, as noted. Cost is based on the fair values of the consideration given in exchange for assets.

In the application of A-IFRS management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Accounting policies are selected and applied in a manner which ensures that the resulting fi nancial information satisfi es the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The accounting policies set out below have been applied in preparing the fi nancial statements for the year ended 30 June 2007, and the comparative information presented in these fi nancial statements for the year ended 30 June 2006.

(a) Reporting EntityThe fi nancial statements include all the controlled activities of Colac Area Health. Colac Area Health is a not-for-profi t entity and therefore applies the additional Aus paragraphs applicable to “not-for-profi t” entities under the A-IFRS.

The health service/hospital is established under the Health Services Act 1988. The responsible Minister during the reporting period is the Hon Bronwyn Pike MP. Effective 3rd August 2007 the Minister for Health is the Hon Daniel Andrews MP.

(b) Rounding OffAll amounts shown in the fi nancial statements are expressed to the nearest $1,000.

(c) Cash and Cash EquivalentsCash and cash equivalents comprise cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

(d) Receivables Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectibility of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is raised where doubt as to the collection exists. Bad debts are written off when identifi ed.

(e) InventoriesInventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business operations. It excludes depreciable assets. Inventories held for distribution are measured at the lower of cost and current replacement cost. All other inventories are measured at the lower of cost and net realisable value.

(f) Other Financial AssetsOther Financial Assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the time frame established by the market concerned, and are initially measured at fair value, net of transaction costs. Other fi nancial assets are classifi ed between current and non-current assets based on the Colac Area Health Board of Management’s intention at balance date with respect to the timing of disposal of each asset.

The Health Service classifi es its other investments as available for sale. This classifi cation depends on the purpose for which the investments were acquired. Management determines the classifi cation of its investments at initial recognition.

Other investments held by Colac Area Health are classifi ed as being available for sale and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in equity, until the investment is disposed of or is determined to be impaired, at which time to the extent appropriate, the cumulative gain or loss previously recognised in equity is included in the operating statement for the period.

Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the fi nancial asset.



(g) Property, Plant and EquipmentFreehold and Crown Land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or constructive restrictions imposed on the intended use of the land. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply.

Buildings are measured at fair value less accumulated depreciation and impairment.

Plant, equipment and vehicles are measured at cost less accumulated depreciation and impairment.

(h) Revaluations of Property, Plant and EquipmentFinancial Reporting Direction (FRD) 103B Non-current Physical Assets, prescribes that non-current physical assets measured at fair values are revalued with suffi cient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value. This revaluation process normally occurs every fi ve years as dictated by timelines in the FRD103B which sets the next revaluation for the Health, Welfare and Community Purpose Group to occur on 30 June 2009, or earlier should there be an indication that fair values are materially different from the carrying value. Revaluation increments and decrements arise from differences between an asset’s carrying value and fair value.

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised immediately as revenue in the net result.

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve. Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Revaluation reserves are not transferred to accumulated funds on derecognition of the relevant asset.

(i) DepreciationAssets with a cost in excess of $1,000 (2005/06 and 2006/07) are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost - or valuation - over their estimated useful lives using the straight-line method. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually. This depreciation charge is not funded by the Department of Human Services.

The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based. 2007 2006 Buildings Up to 50 years Up to 50 years Plant and Equipment Up to 20 years Up to 20 years Motor Vehicles Up to 5 years Up to 5 years (j) Impairment of Assets Intangible assets with indefi nite useful lives are tested annually as to whether their carrying value exceeds their recoverable amount. All other assets are assessed annually for indications of impairment, except for:

- inventories; - assets arising from construction contracts; - assets arising from employee benefi ts; - fi nancial instrument assets; - non-current assets held for sale.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the Operating Statement except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash infl ows is measured at the higher of the present value of future expected cash fl ows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefi ts arising from the use of the asset will be replaced unless a specifi c decision to the contrary has been made.

(k) PayablesThese amounts represent liabilities for goods and services provided prior to the end of the fi nancial year and which are unpaid. The normal credit terms are usually Nett 30 days.

(l) ProvisionsProvisions are recognised when Colac Area Health has a present obligation, the future sacrifi ce of economic benefi ts is probable, and the amount of the provision can be measured reliably.

Colac Area Health52

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash fl ows estimated to settle the present obligation, its carrying amount is the present value of those cash fl ows.

(m) Functional and Presentation CurrencyThe presentation currency of Colac Area Health is the Australian dollar, which has also been identifi ed as the functional currency of the Health Service.

(n) Goods and Services TaxIncome, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

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

Cash fl ows are presented on a gross basis. The GST components of cash fl ows arising from investing or fi nancing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash fl ow.

(o) Employee BenefitsWages and Salaries, Annual Leave, Sick Leave and Accrued Days Off

Liabilities for wages and salaries, including non-monetary benefi ts, annual leave, accumulating sick leave and accrued days off expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefi ts in respect of employee’s services up to the reporting date, classifi ed as current liabilities and measured at nominal values.

Those liabilities that the health service does not expect to settle within 12 months are recognised in the provision for employee benefi ts as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long Service LeaveCurrent Liability - unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability regardless of whether Colac Area Health does not expect to settle this liability within 12 months as it does not have the unconditional right to defer the settlement of the entitlement should an employee take leave.

The components of this current LSL liability are measured at:

present value - component that Colac Area Health does not expect to settle within 12 months; and nominal value - component that Colac Area Health expects to settle within 12 months.

Non-Current Liability - conditional LSL (representing less than 10 years of continuous service) is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until 10 years of service has been completed by an employee. Conditional LSL is required to be measured at present value.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates of national Government guaranteed securities in Australia.

SuperannuationDefi ned contribution plansContributions to defi ned contribution superannuation plans are expensed when incurred.

Defi ned benefi t plansThe amount charged to the Operating Statement in respect of defi ned benefi t plan superannuation represents the contributions made by Colac Area Health to the superannuation plan in respect to the current services of current Colac Area Health staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

Employees of Colac Area Health are entitled to receive superannuation benefi ts and Colac Area Health contributes to both the defi ned benefi t and defi ned contribution plans. The defi ned benefi t plan(s) provide benefi ts based on years of service and fi nal average salary. Colac Area Health does not recognise any defi ned benefi t liability in respect of the superannuation plan because Colac Area Health has no legal or constructive obligation to pay future benefi ts relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance administers and discloses the State’s defi ned liabilities in its fi nancial report.

Termination BenefitsLiabilities for termination benefi ts are recognised when a detailed plan for the termination has been developed and a valid expectation has been raised with those employees affected that the terminations will be carried out. The liabilities for termination benefi ts are recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision.

On-CostsEmployee benefi t on-costs are recognised and included in employee benefi t liabilities and costs when the employee benefi ts to which they relate are recognised as liabilities.




(p) Finance CostsFinance costs are recognised as expenses in the period in which they are incurred.

Finance costs include: - interest on bank overdrafts and short term and long term borrowings; - amortisation of discounts or premiums relating to borrowings; - amortisation of ancillary costs incurred in connection with the arrangement of borrowings; - fi nance charges in respect to fi nance leases recognised in accordance with AASB 117 Leases.

(q) Residential Aged Care Service Corangamarah Residential Aged Care facilities operations are an integral part of Colac Area Health and share its resources. An apportionment of land and buildings has been made based on fl oor space. The results of the two operations have been segregated based on actual revenue earned and expenditure incurred.

(r) Joint Ventures Interests in jointly controlled operations and jointly controlled assets are accounted for by recognising in Colac Area Health’s fi nancial statements, its share of assets, liabilities and any revenue and expenses of such joint ventures. Details of the joint venture are set out in Note 7.

(s) Intersegment Transactions Transactions between segments with Colac Area Health have been eliminated to refl ect the extent of the Health Service’s operations as a group. (t) Leases Lease of property, plant and equipment are classifi ed as fi nance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classifi ed as operating leases.

Assets held under a fi nance lease are recognised as non-current assets at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are discounted at the interest rate implicit in the lease. A corresponding liability is established and each lease payment is allocated between the principal component and the interest expense.

Finance leased assets are amortised on a straight line basis over the shorter of the estimated useful life of the asset or the term of the lease. Contingent rentals associated with fi nance leases are recognised as an expense in the period in which they are incurred.

Operating lease payments, including any contingent rentals, are recognised as an expense in the Operating Statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefi ts derived from the use of the leased asset.

(u) Revenue RecognitionRevenue is recognised in accordance with AASB 118 Revenue and is recognised as to the extent it is earned. Unearned income at reporting date is reported as income received in advance.

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

Government GrantsGrants are recognised as income when Colac Area Health gains control of the underlying assets in accordance with AASB 1004 Contributions. Where grants are reciprocal, revenue is recognised as performance occurs under the grant.

Non-reciprocal grants are recognised as income when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

Indirect Contributions- Insurance is recognised as revenue following advice from the Department of Human Services.- Long Service Leave (LSL) - Revenue is recognised upon fi nalisation of movements in LSL liability in line with the arrangements set out in the Acute Health Division Hospital Circular 16/2004.

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

Donations and Other BequestsDonations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a reserve, such as specifi c restricted purpose reserve.

(v) Fund AccountingColac Area Health operates on a fund accounting basis and maintains two funds: Operating and Capital funds. Colac Area Health’s Capital Fund includes unspent capital donations and receipts from fundraising activities conducted solely in respect of this fund.

(w) Services Supported by Health Services Agreement and Services Supported by Hospital and Community Initiatives. Activities classifi ed as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Human Services and include Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (Non HSA) are funded by the Health Service’s own activities or local initiatives and/or the Commonwealth.

Colac Area Health54

(x) Comparative InformationThere have been no changes to previous year’s fi gures.

(y) Contributed CapitalConsistent with UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 2A Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions, that have been designated as contributed capital are also treated as contributed capital.

(z) Net Result From Continuing Operations Before Capital and Specific ItemsThe sub-total entitled ‘Net result Before Capital and Specifi c Items’ is included in the Operating Statement to enhance the understanding of the fi nancial performance of Colac Area Health. This sub-total reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, and items of unusual nature and amount such as specifi c revenues and expenses. The exclusion of these items are made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The Net Result Before Capital and Specifi c Items is used by the management of Colac Area Health, the Department of Human Services and the Victorian Government to measure the ongoing result of Health Services in operating hospital services.

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

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

- Specifi c income/expense, comprises the following items, where material: Voluntary departure packages Write-down of inventories Non-current asset revaluation increments/decrements Diminution in investments Restructuring of operations (disaggregation/aggregation of health services) Litigation settlements Non-current assets lost or found Forgiveness of loans Reversals of provisions Voluntary changes in accounting policies (which are not required by an accounting standard or other authoritative pronouncement of the Australian Accounting Standards Board)

- Impairment of non-current assets, includes all impairment losses (and reversal of previous impairment losses), related to non-current assets only which have been recognised in accordance with Note 1(j)

- Depreciation and amortisation, as described in Note 1(i)

- Expenditure using capital purpose income, comprises expenditure which either falls below the asset capitalisation threshold (Note 1 (g)), or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that expenditure is from capital purpose income.

(aa) Category GroupsColac Area Health has used the following category groups for reporting purposes for the current and previous fi nancial years.

Admitted Patient Services (Admitted Patients) comprises all recurrent health revenue/expenditure on admitted patient services, where services are delivered in public hospitals, or free standing day hospital facilities, or alcohol and drug treatment units or hospitals specialising in dental services, hearing and ophthalmic aids.

Outpatient Services (Outpatients) comprises all recurrent health revenue/expenditure on public hospital type outpatient services, where services are delivered in public hospital outpatient clinics, or free standing day hospital facilities, or rehabilitation facilities, or alcohol and drug treatment units, or outpatient clinics specialising in ophthalmic aids or palliative care.

Emergency Department Services (EDS) comprises all recurrent health revenue/expenditure on emergency department services that are available free of charge to public patients.

Aged Care comprises revenue/expenditure from Home and Community Care (HACC) programs, Allied Health, Aged Care Assessment and support services.

Primary Health comprises revenue/expenditure for Community Health Services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy.

Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health revenue/expenditure on public hospital type services, including palliative care facilities and rehabilitation facilities, as well as services provided under the following agreements:

Services that are provided or received by hospitals (or area health services) but are delivered/received outside a hospital campus, services which have moved from a hospital to a community setting since June 1998, services which fall within the agreed scope of inclusions under the new system, which have been delivered within hospitals i.e. in rural/remote areas.




Other Services excluded from Australian Health Care Agreement (AHCA) (Other) comprises revenue/expenditure for services not separately classifi ed above, including: Public health services including Laboratory testing, Blood Borne Viruses/Sexually Transmitted Infections clinical services, Kooris liaison offi cers, immunisation and screening services, Drugs services including drug withdrawal, counselling and the needle and syringe program, Dental Health services including general and specialist dental care, school dental services and clinical education, Disability services including aids and equipment and fl exible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.

(ab) New Accounting Standards and InterpretationsCertain new accounting standards and interpretations have been published that are not mandatory for 30 June 2007 reporting period.As at 30 June 2007, the following standards and interpretations had been issued but were not mandatory for fi nancial years ending 30 June 2007. Colac Area Health has not and does not intend to adopt these standards early.

Standard/Interpretation Summary Applicable for reporting periods beginning on orending on

Impact on Health Service’s AnnualStatements

AASB 7Financial Instruments:Disclosures

New Standard replacingdisclosure requirements ofAASB 132

Beginning 1 Jan 2007

AASB 7 is a disclosure standard so will have no direct impact on the amounts included in Colac Area Health’s fi nancialstatements. However, the amendments will result in changes to the fi nancial instrument disclosures included in Colac Area Health’s annual report.

AASB 2005-10, Amendmentto Australian AccountingStandards (AASB;s 132, 101,114,117,133,139,1, 4,1023,& 1038)

Amendments arising from the release in Aug 05 of AASB 7Financial Instruments:Disclosures


Amendments may result in changes to the fi nancial statements.

AASB 101 Presentation ofFinancial Statements (revised)

Removes Australian specifi crequirements from AASB 101,including the Australianillustrative formats of the income statement, balancesheet, and the statement ofchanges in equity which Health Services werepreviously ‘encouraged’ to adopt in preparing theirfi nancial statements


Amendments may result in changes to the fi nancial statements.

AASB 2007-1 Amendmentsto Australian Accounting Standards arising from AASBInterpretation 22 (AASB 2)

Additional paragraphs addedunderneath transitionalpayments

1 March 2007 Amendments may result in changes to the fi nancial statements.

Colac Area Health56

NOTE 2: REVENUE

H.S.A H.S.A. Non Non Total Total

H.S.A. H.S.A.

2007 2006 2007 2006 2007 2006

$’000 $’000 $’000 $’000 $’000 $’000

Revenue from Operating Activities

Government Grants

-Department of Human Services 20,875 19,119 0 0 20,875 19,119

-Dental Health Services Victoria 434 469 0 0 434 469

Indirect Contributions by Department of Human Services

-Long Service Leave (282) 28 0 0 (282) 28

-Insurance 624 532 0 0 624 532

Patient and Resident Fees (refer Note 2c) 4,964 4,505 0 0 4,964 4,505

Net Gain/Loss on Disposal of Non-Current Assets (refer Note 2d) 13 0 0 2 13 2

Other Revenue from Operating Activities 855 926 0 0 855 926

Sub-Total Revenue from Operating Activities 27,483 25,579 0 2 27,483 25,581

Revenue from Non-Operating Activities

Donations and Bequests 0 0 0 331 0 331

Property Income 0 0 91 85 91 85

Sub-Total Revenue from Non-Operating Activities 0 0 91 416 91 416

Revenue from Capital Purpose Income

State Government Capital Grants 1,541 8,501 0 0 1,541 8,501

Donations and Bequests 307 0 0 0 307 0

Sub-Total Revenue from Capital Purpose Income 1,848 8,501 0 0 1,848 8,501

Total Revenue (refer Note 2a) 29,331 34,080 91 418 29,422 34,498

Indirect contributions by Department of Human Services Department of Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in determining the operating result for the year by recording them as revenue and expenses.




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Colac Area Health58

H.S.A H.S.A. Non Non Total Total

H.S.A. H.S.A.

2007 2006 2007 2006 2007 2006

$’000 $’000 $’000 $’000 $’000 $’000

Employee Benefits

Salaries and Wages 16,022 16,032 0 0 16,022 16,032

WorkCover Premium 315 385 0 0 315 385

Departure Packages 125 0 0 0 125 0

Long Service Leave 362 386 0 0 362 386

Superannuation (refer Note 17) 1,630 1,622 0 0 1,630 1,622

Total Employee Benefits 18,454 18,425 0 0 18,454 18,425

Non Salary Labour Costs

Fee for Service Medical Offi cers 2,102 1,817 0 0 2,102 1,817

Total Non Salary Labour Costs 2,102 1,817 0 0 2,102 1,817

Supplies and Consumables

Pharmaceutical Supplies 425 447 0 0 425 447

Medical and Surgical Supplies 1,579 1,739 0 0 1,579 1,739

Pathology Supplies 266 143 0 0 266 143

Food Supplies 625 595 0 0 625 595

Total Supplies and Consumables 2,895 2,924 0 0 2,895 2,924

Other Expenses from Continuing Operations

Domestic Services 460 440 0 0 460 440

Administrative Expenses 1,971 1,346 0 0 1,971 1,346

Motor Vehicle Expenses 113 105 0 0 113 105

Repairs and Maintenance 371 384 0 213 371 597

Patient Transport 106 99 0 0 106 99

Insurance costs funded by DHS 624 532 0 0 624 532

Corporate Costs - Leave Liabilities 0 28 0 0 0 28

Fuel, Light, Power and Water 336 318 0 0 336 318

Total Other Expenses from Continuing Operations 3,981 3,252 0 213 3,981 3,465

Depreciation 1,340 1,235 0 0 1,340 1,235

Audit Fees 12 12 0 0 12 12

Total 1,352 1,247 0 0 1,352 1,247

Total Expenses 28,784 27,665 0 213 28,784 27,878

NOTE 2b: EXPENSES




NOTE 2b(i): ANALYSIS OF EXPENSES BY SOURCEAcute Acute RAC RAC Primary Primary Other Other Total Total

Health Health Health Health

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Services Supported by

Health Services Agreement

Employee Benefi ts

Salaries and Wages 7,864 9,044 5,342 4,311 2,941 2,677 0 0 16,147 16,032

WorkCover 154 216 101 105 60 64 0 0 315 385

Long Service Leave 242 256 64 100 56 30 0 0 362 386

Superannuation (refer Note 17) 787 974 558 421 285 227 0 0 1,630 1,622

Non Salary Labour Costs

Fee for Service Medical Offi cers 2,102 1,817 0 0 0 0 0 0 2,102 1,817

Supplies and Consumables

Pharmaceutical Supplies 373 406 28 31 24 10 0 0 425 447

Medical and Surgical Supplies 1,349 1,416 189 140 41 183 0 0 1,579 1,739

Pathology Supplies 200 143 66 0 0 0 0 0 266 143

Food Supplies 318 246 300 324 7 25 0 0 625 595

Other Expenses

Domestic Services 249 313 189 107 22 20 0 0 460 440

Administrative Expenses 1,472 415 245 266 254 665 0 0 1,971 1,346

Motor Vehicle Expenses 51 48 17 15 45 42 0 0 113 105

Repairs and Maintenance 219 256 90 90 62 38 0 0 371 384

Patient Transport 106 99 0 0 0 0 0 0 106 99

Insurance costs funded by DHS 281 282 94 133 249 117 0 0 624 532

Corporate Costs - Leave Liabilities 0 20 0 8 0 0 0 0 0 28

Fuel, Light, Power and Water 247 213 68 90 21 15 0 0 336 318

Sub-Total Expenses from 16,014 16,164 7,351 6,141 4,067 4,113 0 0 27,432 26,418


Health Services Agreement


Hospital and Community

Initiatives

Repairs and Maintenance 0 0 0 0 0 0 0 213 0 213

Sub-Total Expenses from 0 0 0 0 0 0 0 213 0 213


Hospital and Community

Initiatives

Depreciation (refer Note 3) 903 677 201 297 236 261 0 0 1,340 1,235

Audit Fees (refer Note 19) 7 7 3 3 2 2 0 0 12 12

Net Loss on Sale of Assets 0 0 0 0 0 0 0 0 0 0

Sold (refer Note 2d)

Total Expenses 16,924 16,848 7,555 6,441 4,305 4,376 0 213 28,784 27,878

Colac Area Health60

NOTE 2c: PATIENT AND RESIDENT FEES

Total Total

2007 2006

$’000 $’000

Patient and Resident Fees Raised

Recurrent:

Acute

-Inpatients 626 630

-Outpatients 270 238

Residential Aged Care

-Nursing Homes 3,918 3,486

Total Recurrent 4,814 4,354

Capital Purpose

Residential Accommodation Payments 150 151

Total Capital 150 151

Total Total

2007 2006

$’000 $’000

Proceeds from Disposals of Non-Current Assets

Proceeds from Disposal - Motor Vehicles 205 65

Total Proceeds from the Sale of Non Current Assets 205 65

Less Written Down Value of Assets Sold -Motor Vehicles (192) (63)

Total Written Down Value of Non Current Assets Sold (192) (63)

Net Gains/(Losses) on Disposal of Non Current Assets 13 2

NOTE 2d: NET GAIN/(LOSS) ON DISPOSAL OF NON-CURRENT ASSETS




NOTE 3: DEPRECIATION

Total Total

2007 2006

$’000 $’000

Depreciation

Buildings 731 657

Motor Vehicles 144 147

Plant and Equipment 465 431

Total Depreciation 1,340 1,235

For the purpose of the Cash Flow Statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignifi cant risk of change in value, net of outstanding bank overdrafts.

Total Total

2007 2006

$’000 $’000

CASH ASSETS

Cash on Hand 1 1

Cash at Bank 2,297 1,646

Total 2,298 1,647

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement) 2,098 1,485

Polwarth House Trust Account 151 98

Salary Packaging Account 49 64

Total 2,298 1,647

NOTE 4: CASH AND CASH EQUIVALENTS

Colac Area Health62

NOTE 5: RECEIVABLES

Total Total

2007 2006

$’000 $’000

Current

Patient Fees 178 232

Trade Debtors 245 567

Total Current Receivables 423 799

Non-Current

Department of Human Services - Long Service Leave 128 677

Total Non-Current Receivables 128 677

Total Receivables 551 1,476

Total Total

2007 2006

$’000 $’000

Current

Pharmaceuticals 40 52

Catering Supplies 15 11

Housekeeping Supplies 6 12

Medical and Surgical Lines 80 83

Engineering Stores 1 1

Administration Stores 7 8

Total Inventories 149 167

NOTE 6: INVENTORY




NOTE 7: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHODColac Area Health has a joint venture interest of 11.39% in the South Western Alliance of Rural Health (SWARH) whose principal activity is the implementing and processing of an information technology system and an associated telecommunications service suitable for use by each member of SWARH.

Colac Area Health’s share of assets, liabilities and operating result is:

Total Total

2007 2006

$’000 $’000

Interest in Jointly Controlled Entities 156 245

Total 156 245

Name of Entity Principle Activity County of Incorporation Ownership Interest

% %

S.W.A.R.H. IT Systems Australia 11.39 12.00

Total Total

2007 2006

$’000 $’000

Summarised Financial Information of Jointly Controlled Entities Balance Sheet

Current Assets 89 74

Non-Current Assets 299 258

Share of Total Assets 388 332

Current Liabilities 232 87

Share of Total Liabilities 232 87

Net Assets 156 245

Share of Jointly Controlled Entities’ Profit or Loss: (88) (38)

Operating Contract Commitments 259

Operating Lease Commitments 15

Capital Commitments 20 61

Colac Area Health64

NOTE 8: PROPERTY, PLANT AND EQUIPMENT

Total Total

2007 2006

$’000 $’000

Land

Crown Land at Valuation 2,210 2,210

Freehold Land at Valuation 955 955

Total Land 3,165 3,165

Buildings

Buildings under Construction 0 8,832

Buildings at cost 10,629 0

Less Accumulated Depreciation 165 0

10,464 0

Buildings at Valuation 28,288 28,288

Less Accumulated Depreciation 5,859 5,293

22,429 22,995

Total Buildings 32,893 31,827

Plant and Equipment

Plant and Equipment at Cost 6,643 5,840

Less Accumulated Depreciation 3,499 3,034

Total Plant and Equipment 3,144 2,806

Motor Vehicles

Motor Vehicles at Cost 774 729

Less Accumulated Depreciation 224 239

Total Motor Vehicles 550 490

TOTAL 39,752 38,288




NOTE 8: PROPERTY, PLANT AND EQUIPMENT (cont)Reconciliation of the carrying amounts of each class of asset at the beginning and end of the previous and current fi nancial year is set out below.

Crown Freehold Buildings Plant and Motor Total

Land Land Equipment Vehicles

$’000 $’000 $’000 $’000 $’000 $’000

Balance at 1 July 2005 1,654 910 19,650 2,765 593 25,572

Additions 0 0 7,833 472 109 8,414

Disposals 0 0 0 0 65 65

Depreciation (Note 3) 0 0 657 431 147 1,235

Revaluation increment 556 45 5,001 0 0 5,602

Balance at 30 June 2006 2,210 955 31,827 2,806 490 38,288

Additions 0 0 1,797 803 396 2,996

Disposals 0 0 0 0 192 192

Depreciation (Note 3) 0 0 731 465 144 1,340

Balance at 30 June 2007 2,210 955 32,893 3,144 550 39,752

Land and buildings carried at valuationAn independent valuation of Colac Area Health’s land and buildings was performed by Landlink Pty Ltd to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. The valuation was based on independent assessments. The effective date of the valuation is 30/06/2006.

Total Total

2007 2006

$’000 $’000

Current

Trade Creditors 523 483

Department of Human Services 132 0

GST Payable 473 495

Total

1,128 978

NOTE 9: PAYABLES

Colac Area Health66

NOTE 10: PROVISIONS

Total Total

2007 2006

$’000 $’000

Current

Employee Benefi ts (refer Note 10a) 3,812 3,366

Provision for Re-instatement 0 124

Total 3,812 3,490

Non Current

Employee Benefi ts (refer Note 10a) 1,086 1,785

Total 1,086 1,785

Total Total

2007 2006

$’000 $’000

Current (Refer Note 1(o))

Unconditional Long Service Leave entitlements

- Short term benefi ts at nominal value 225 1,007

- Long term benefi ts at present value 1,561 365

Annual Leave entitlements 1,426 1,459

Accrued Wages and Salaries 566 506

Accrued Days Off 34 29

3,812 3,366

Non Current (refer Note 1(o))

Conditional Long Services Leave entitlements (present value) 1,086 1,785

Total 1,086 1,785

Movement in Long Service Leave:

Balance at start of year 3,157 3,128

Provision made during the year 77 415

Settlement made during the year (362) (386)

Balance at end of year 2,872 3,157

NOTE 10a: EMPLOYEE BENEFITS




NOTE 10b: PROVISION FOR RE-INSTATEMENT

Total Total

2007 2006

$’000 $’000

Movement in Provision for Re-instatement

Balance at start of year 124 0

Provision made during the year 0 124

Reversal of Provision for Re-instatement (124) 0

Balance at end of year 0 0

NOTE 11: OTHER LIABILITIES

Total Total

2007 2006

$’000 $’000

Current

Monies Held in Trust

- Patient Monies Held in Trust 151 98

- Accommodation Bonds (Refundable Entrance Fees) 357 382

- Salary Packaging 49 64

Total Other Liabilities 557 544

Total Monies Held in Trust

Represented by the following assets:

Polwarth House Trust Account 151 98

Operating Account 357 382

Salary Packaging Account 49 64

TOTAL 557 544

Colac Area Health68

NOTE 12: EQUITY AND RESERVES

Total Total

2007 2006

$’000 $’000

(a) Reserves

Asset Revaluation Reserve

Land

Balance at the beginning of the reporting period 1,710 1,109

Revaluation Increment 0 601

Balance at end of reporting period 1,710 1,710

Buildings


Revaluation Increment 0 5,001

Reversal of Provision for Re-instatement 124 0

Balance at the end of the reporting period 6,259 6,135

Total Asset Revaluation Reserve 7,969 7,845

General Purpose Reserve

Balance at the beginning of the reporting period 0 54

Transfers to and from General Reserve 0 (54)

Balance at the end of the reporting period 0 0

Total Reserves

7,969 7,845

(b) Contributed Capital


Capital Contribution received from Victorian Government 535 350


(c) Accumulated Surpluses


Net Result for the Year 638 6,620

Transfers to and from General Reserve 0 54


(d) Total Equity at end of financial year 36,323 35,026




Total Total

2007 2006

$’000 $’000

Net Result for the Year 638 6,621

Depreciation 1,340 1,235

Contribution Joint Venture (SWARH) 156 283

Contribution Non-Current Asset 0 124

Net Gain/(Loss) from Sale of Plant and Equipment 13 2

Provision for Doubtful Debts 0 (4)

Change in Operating Assets and Liabilities

Increase/(Decrease) in Payables 150 108

Increase/(Decrease) in Employee Benefi ts (377) 89

Increase/(Decrease) in Other Current Liabilities 13 0

Decrease/(Increase) in Inventory 18 (30)

Decrease/(Increase) in Receivables 905 782

Decrease/(Increase) in Investment (38) 0

Decrease/(Increase) in Other Current Asset 89 0

Net Cash Inflow/(Outflow) from Operating Activities 2,907 9,210

NOTE 13: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH

INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

Colac Area Health70

NOTE 14: FINANCIAL INSTRUMENTS(a) Risk Management PoliciesThe Audit and Compliance Committee meet on a regular basis to receive and discuss reports from both internal and external auditors. An effective framework is in place to adequately assess, monitor, manage and report the signifi cant fi nancial risks that the Health Service is exposed to.

(b) Significant Accounting PoliciesDetails of the signifi cant accounting policies and method adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of fi nancial asset, fi nancial liability and equity instrument are disclosed in Note 1 of the fi nancial statements.

The Health Service’s fi nancial instruments consist mainly of deposits with banks, short term investments, accounts receivable and payable’s. The Health Service does not have any derivative instruments as 30 June 2007 (nil 2006).

(c) Credit Risk ExposureCredit risk represents the loss that would be recognised if counterparties fail to meet their obligations under the respective contracts at maturity. The credit risk on fi nancial assets of the entity have been recognised on the Balance Sheet, as the carrying amount, net any provisions for doubtful debts. This indicates whether the Health Service is materially exposed to any individual debtor.

(d) Interest Rate Risk ExposureColac Area Health’s exposure to interest rate risk and effective weighted average interest rate by maturity periods is set out below in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to the fi nancial statements. Exposuresarises predominately from assets and liabilities bearing variable interest rates

Interest rate exposure as at 30/06/2007

Fixed Interest Rate Maturing In:

Weighted Floating 1 Year Non-interest Total

Average Interest or Less Bearing 2007

Interest Rate

Rate $’000 $’000 $’000 $’000

Financial Assets

Cash and Cash Equivalents 5.00% 2,298 0 0 2,298

Receivables 0 0 551 551

Total Financial Assets 2,298 0 551 2,849

Financial Liabilities

Trade creditors and accruals 0 0 1,128 1,128

Monies Held in Trust 0 0 557 557

Total Financial Liabilities 0 0 1,685 1,685

Net Financial Assets 2,298 0 (1,134) 1,164




NOTE 14: FINANCIAL INSTRUMENTS (cont)Interest rate exposure as at 30/06/2006

Fixed Interest Rate Maturing In:

Weighted Floating 1 Year Non-interest Total

Average Interest or Less Bearing 2006

Interest Rate

Rate $’000 $’000 $’000 $’000

Financial Assets

Cash Assets 5.00% 1,647 0 0 1,647

Receivables 0 0 1,476 1,476

Total Financial Assets 1,647 0 1,476 3,123


Trade creditors and accruals 0 0 978 978


Total Financial Liabilities 0 0 1,522 1,522

Net Financial Assets 1,647 0 (46) 1,601

(e) Net Fair Value of Financial Assets and LiabilitiesThe carrying amount of fi nancial assets and liabilities contained within these fi nancial statements is representative of the fair value of each fi nancial asset or liability.

The following table details the fair value of fi nancial assets and fi nancial liabilities.

Book Net Fair Book Net Fair

Value Value Value Value

2007 2007 2006 2006

$’000 $’000 $’000 $’000

Financial Assets

Cash Assets 2,298 2,298 1,647 1,647

Receivables 551 551 1,476 1,476

Total Financial Assets 2,849 2,849 3,123 3,123


Trade creditors and accruals 1,128 1,128 978 978


Total Financial Liabilities 1,685 1,685 1,522 1,522

Colac Area Health72

NOTE 15: COMMITMENTS FOR EXPENDITURE

Total Total

2007 2006

$’000 $’000

Lease Commitments

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

Operating Lease

Non-cancellable

Not later than One Year 0 24

Later than One but not later than Five Years 0 120

Total 0 144

Leasing of computer equipment had commenced in 2003. The lease period was for three years with lease payments paid quarterly in advance. There were no fi nancial restrictions or contingent rental payments incorporated into the lease agreements by the lessor. The interest rates were fi xed at the commencement of the lease period at current market rates

A contingent asset exists in respect to a Bequest from an Estate in which Colac Area Health has been named as a residual benefi ciary. Colac Area Health is receiving income from the Estate and fi fty per cent of the capital of the Estate is receivable on the death of the life tenants.

NOTE 16: CONTINGENT ASSETS AND CONTINGENT LIABILITIES




NOTE 17: SUPERANNUATIONColac Area Health makes employer superannuation contributions in respect of most employees to Health Super or Hesta (the Funds). Health Super has two categories of membership, each of which is funded differently.

The Fund’s accumulation categories receive both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fi xed percentage of employee earnings (9% required under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefi ts accruing to the employees are represented by their share of the net assets of the Fund.

Health Super also has a Defi ned Benefi t Plan which is a multi-employer sponsored plan. As the Fund’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to allocate benefi t liabilities, assets and costs between employers. As provided under Paragraph 32(b) of AASB 119, Colac Area Health does not use defi ned benefi t accounting for these contributions.

Colac Area Health makes employer contributions to the defi ned benefi t category of the Fund at rates determined by the Trustee on the advice of the Fund’s Actuary. On the basis of the results of the most recent full actuarial investigation conducted by the Fund’s actuary, the Trustee has determined that the current funding arrangements are adequate for the expected Defi ned Benefi t Plan liabilities.

The names and details of the major employee superannuation funds and contributions made by the Service are as follows:

Contribution for the Year Total Total

2007 2006

$’000 $’000

Fund

Health Super Fund 1,567 1,554

Hesta Super Fund 56 68

Vic Super 7 0

Total 1,630 1,622

Contribution Outstanding at Year End Total Total

2007 2006

$’000 $’000

Fund

Health Super Fund 0 76

Hesta Super Fund 0 2

Vic Super 7 0

Total 7 78

The basis for contributions are determined by the various schemes.

The unfunded superannuation liability in respect to members of State Superannuation Schemes and Health Super Scheme is not recognised in the Balance Sheet. Colac Area Health’s total unfunded superannuation liability in relation to these funds has been assumed by and is refl ected in the fi nancial statements of the Department of Treasury and Finance.

The above amounts were measured as at 30 June of each year, or in the case of employer contributions they relate to the years ended 30 June.

All employees of the Agency are entitled to benefi ts on retirement, disability or death from the Government Employees Super Fund. This Fund provides defi ned lump sum benefi ts based on years of service and annual average salary.

Colac Area Health74

NOTE 18a: RESPONSIBLE RELATED DISCLOSURESIn accordance with the Ministerial Directions issued by the Minister form Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Period

Responsible Ministers:

The Honourable Bronwyn Pike, MLA Minister for Health 1/07/2006 - 30/06/2007

The Honourable Daniel Andrews, MLA Minister for Health (Appointed 3/08/2007)

Governing Boards

Mr. R.V. Riordan 1/07/2006 - 30/06/2007

Mr. W.G. O’Brien 1/07/2006 - 30/06/2007

Mr. A.E. Graham 1/07/2006 - 30/06/2007

Mr. A.F. Baldwin 1/07/2006 - 30/06/2007

Ms. K. McBride 1/07/2006 - 30/06/2007

Mr. W.J. Ryan 1/07/2006 - 30/06/2007

Mrs. A. McDonald 1/07/2006 - 30/06/2007

Accountable Officer

Ms. J. Ross 1/07/2006 - 28/08/2006

Mr. M.G. Iles - Chief Executive 17/07/2006 - 30/06/2007

Remuneration of Responsible Persons

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

Income Band 2007 2006

$0 - $9,999 8 11

$130,000 - $139,999 2 0

$150,000 - $159,999 0 1

Total Numbers 10 12

Total remuneration received or due and receivable by Responsible

Persons from the reporting entity amounted to: $204,712 $156,500

Amounts relating to Responsible Ministers are reported in the fi nancial statements of the Department of Premier and Cabinet.

Other Transactions of Responsible Persons and their Related PartiesMr. W.G. O’Brien was a Director of a Company which provided accounting services to the Service to the value of $418. These services were provided within a normal supplier relationship and were at arms length.




NOTE 18b: EXECUTIVE OFFICER DISCLOSURESExecutive Officers’ Remuneration

The numbers of executive offi cers, other than Ministers and Accountable Offi cers, and their total remuneration during the reporting period are shown in the fi rst two columns in the table below in their relevant income bands. The base remuneration of executive offi cers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefi ts.

Income Band Total Remuneration Base Remuneration

2007 2006 2007 2006

No. No. No. No.

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

$110,000 -$119,999 1 - 1 -

1 - 1 -

Total Total

2007 2006

$’000 $’000

Audit fees paid or payable to the Victorian Auditor-General’s Offi ce for audit of Colac Area Health’s current fi nancial report

Paid as at 30 June 0 4

Payable as at 30 June 12 8

12 12

NOTE 19: REMUNERATION OF AUDITORS

Colac Area Health76

NOTE 20: SEGMENT REPORTINGHospital Hospital RACS RACS Primary Primary Other Other Total Total

Care Care

2007 2006 2007 2006 2007 2006 2007 2006 2007 2006

$’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000 $’ 000

REVENUE

External Segment Revenue 17,595 15,602 7,839 5,356 3,577 3,934 411 9,606 29,422 34,498

Total Revenue 17,595 15,602 7,839 5,356 3,577 3,934 411 9,606 29,422 34,498

RESULT

Segment Result 650 (1,240) 284 (356) (728) (451) 411 8,660 617 6,613

Net Result from Ordinary Activities 650 (1,240) 284 (356) (728) (451) 411 8,660 617 6,613

Interest Income 109 32 0 4 0 9 0 0 109 45

Share of Net Result of Joint

Venture using the Equity Model (88) (38) 0 0 0 0 0 0 (88) (38)

Net Result for Year 671 (1,246) 284 (352) (728) (442) 411 8,660 638 6,620

OTHER INFORMATION

Segment Assets 21,493 20,645 14,989 15,215 6,424 5,876 0 87 42,906 41,823

Total Assets 21,493 20,645 14,989 15,215 6,424 5,876 0 87 42,906 41,823

Segment Liabilities 3,282 4,462 2,311 1,306 990 860 0 169 6,583 6,797

Total Liabilities 3,282 4,462 2,311 1,306 990 860 0 169 6,583 6,797

Investments in associates and

joint venture partnership 156 245 0 0 0 0 0 0 156 245

Acquisition of Property, Plant and

Equipment 1,393 529 1,298 7,496 305 389 0 0 2,996 8,414

Depreciation Expense 603 677 201 270 536 261 0 27 1,340 1,235

Non Cash Expense other than

Depreciation 0 50 0 9 0 6 0 1 0 66

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

Business Segments Services

Hospital Acute Health

Residential Aged Care Services (RACS) Aged Care

Primary Care Primary and Community Care Programs

Other Home Nursing and Capital Fundraising

Geographical Segment

Colac Area Health operates predominantly in the Colac Otway Region of Victoria. More than 90% of revenue, net surplus from ordinary activities and segment assets relate to operations in Colac, Victoria.


financial services · 46 colac area health financial statements operating statement for the year...

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