· part one: overview 1.2 statement of expectation and statement of intent iii the hon. nicola...

National Blood A

uthorityA

nnual Report 2007 ~08

National Blood AuthorityLocked Bag 8430 Canberra ACT 2601

Phone 02 6211 8300 Fax 02 6211 8330 Email [email protected] Web www.nba.gov.au

Annual Report2007~08


National Blood Authority

© Commonwealth of Australia 2008

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government, available from the Attorney-General’s Department. Requests and enquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, BARTON ACT 2600 or posted at http://www.ag.gov.au/cca.

ISSN 1832-1909

Web address of this report: http://www.nba.gov.au/publications/annualreport.htm

Printed by: Paragon Printers

Designed by: ZOO Communications

Contact officer: Stephanie Gunn Deputy General Manager (Corporate and Blood Counts) Locked Bag 8430 Canberra ACT 2601 Telephone: (02) 6211 8300 Facsimile: (02) 6211 8330 Email: [email protected]

Website: www.nba.gov.au

The National Blood Authority thanks the Australian Red Cross Blood Service—Garran Site, Australian Capital Territory— for allowing photography of its site for this publication.

iiiPart One: Overview 1.2 Statement of Expectation and Statement of Intent

The Hon. Nicola Roxon MP

Minister for Health and Ageing

Parliament House

CANBERRA ACT 2600

Dear Minister,

I am pleased to present to you the annual report of the National Blood Authority and the National Blood Authority Board for the financial year ending 30 June 2008, as required under sub-sections 44(1) and 44(2) of the National Blood Authority Act 2003.

This annual report details the National Blood Authority’s performance against the Agency Outcomes and Output Groups of the Health and Ageing Portfolio Budget Statements 2007–08.

This document has been prepared in accordance with the guidelines approved by the Joint Committee of Public Accounts and Audit referred to in sub-sections 63(2) and 70(2) of the Public Service Act 1999. These guidelines are applied as a matter of policy to prescribed agencies, including the National Blood Authority, under section 5 of the Financial Management and Accountability Act 1997.

Sub-section 44(3) of the National Blood Authority Act 2003 requires you to present this report to each House of Parliament within 15 sitting days of that House after the day you are presented with the report.

Yours sincerely

Dr Alison Turner

General Manager and CEO


10 October 2008

Letter of Transmittal

iv National Blood Authority Annual Report 2007~08

Contents

Letter of transmittal iii

User guide vii

Part One: Overview

1.1 General Manager’s review 2

1.2 National Blood Authority Board Chair’s report 6

1.3 Biographies of members of the National Blood Authority Board 10

1.4 The first five years 17

Part Two: Our role and governance

2.1 The NBA role 28

2.2 Background 29

2.3 The blood supply chain 30

2.4 External governance arrangements 32

2.5 Internal governance arrangements 35

Part Three: Our performance

3.1 Outcome performance report 42

3.2 Performance indicators 43

3.3 Management of fresh blood products 47

3.4 Commercial contract management 59

3.5 Blood Counts 67

3.6 Supply and data management 79

3.7 Budget and financial management 87

3.8 Sector risk management 88

3.9 Corporate performance 91

Part Four: Our people

4.1 Staffing 98

4.2 Work culture and conditions 100

4.3 Professional and personal development 102

4.4 Productivity gains 103

4.5 Commonwealth Disability Strategy 103

4.6 Occupational health and safety 103

Part Five: Future trends in blood management and horizon scanning 105

vContents

Part Six: Our finances

6.1 Summary resource table 112

6.2 Purchasing 113

6.3 Competitive tendering and contracting 114

6.4 Asset management 114

6.5 Advertising and market research 114

6.6 Consultants 115

6.7 Financial management 117

Part Seven: Appendices

7.1 Financial Statements 124

7.2 Freedom of Information Statement 173

7.3 Blood products supplied by the Australian Red Cross Blood Service 175

7.4 Plasma and recombinant products supplied under contract in 2007–08 176

7.5 Abbreviations and acronyms 178

Part Eight: Index

TAbLES

1.1 Five years of achievements, 2003–08 19

2.1 The National Blood Agreement: objectives of governments 29

2.2 Government provided funding to procure and manage the blood supply 30

3.1 Extract of NBA key performance indicators reported in the Health and Ageing Portfolio Budget Statements 2007–08 42

3.2 Blood and blood-related products purchased in 2006–07 and 2007–08, by supplier 44

3.3 New blood product contracts negotiated, 2007–08 46

3.4 Australian Red Cross Blood Service, annual funding commitments, 2003–08 47

3.5 Value of Australian Red Cross Blood Service annual capital plan ($ million), 2005–08 51

3.6 Key performance indicators for the CSL Ltd Plasma Products Agreement 59

3.7 Imported recombinant blood product contract key performance indicators 65

3.8 Types of red cell usage studies being undertaken within the states and territories 76

3.9 Issues of blood products 2006–07 and 2007–08 80

3.10 Terms of Reference for the Review of Distribution Arrangements for Blood Products 85

3.11 NBA Performance indicators for JBC support, 2007–08 93

4.1 NBA staff numbers, as of 30 June 2008 99

4.2 Salary levels 99

6.1 Total resources for Outcome 1 ($ k), 2007–08 112

6.2 Total expenditure for payments over $10 300 on advertising, market research 114 and direct mailing services, 2007–08

6.3 Total expenditure on consultancy services, 2005–06 to 2007–08 115

vi National Blood Authority Annual Report 2007~08

6.4 Consultancy services of $10 000 or more, 2007–08 116

6.5 Key results in financial performance 118

6.6 Key results of administered expenses 120

FIgurES

2.1 Australian blood supply chain 31

2.2 Governance structure of the Australian blood sector 32

2.3 The NBA’s organisational structure 35

2.4 Executive management monthly program 39

3.1 Performance of National Blood Authority: actual funding versus budgets 46

3.2 Product mix of red blood cells issued by the Australian Red Cross Blood Service, 48 2003–08

3.3 Product mix of platelets issued by the Australian Red Cross Blood Service, 2003–08 48

3.4 Examples of emerging theme mapping 50

3.5 Red blood cells issued per 1000 head of population 55

3.6 Platelets issued per 1000 head of population 55

3.7 Issues for IVIg products 60

3.8 Issues of IVIg per 1000 head of population 60

3.9 Market share of recombinant factor VIII issues 62

3.10 Issues of factor VIII products 62

3.11 Issues of factor IX products 63

3.12 Issues of recombinant factor VIIa products 63

3.13 Issues of total factor VIII per 1000 head of population 64

3.14 Issues of total factor IX per 1000 head of population 64

3.15 Market share for diagnostic reagent supply 66

3.16 Criteria For the Clinical Use of Intravenous Immunoglobin (IVIg) in Australia: book and Quick Reference Guide 69

3.17 Top ten uses of intravenous immunoglobulin (IVIg) 69

3.18 Initial Australian Haemovigilance Report 74

5.1 The scope of the Review of New Technologies, New Techniques and New Products 107

6.1 Composition of NBA assets at 30 June 2008 121

6.2 Composition of contributions from all governments, 2007–08 121

viiuser guide

User guide

This annual report outlines the National Blood Authority’s performance and achievements for the financial year ending 30 June 2008. The annual report also incorporates the NBA Board report, as required under Section 44(2) of the National Blood Authority Act 2003 for the same period.

The annual report has been prepared in accordance with the Department of the Prime Minister and Cabinet’s requirements for annual reports, released in June 2008, and has been written to inform stakeholders, including government and the community, of the way in which the roles and responsibilities of the NBA have been implemented.

The annual report is divided into the parts explained below.

Part One: Overview

Part One provides a summary explanation of key activities and outlines the major achievements of the National Blood Authority (NBA), as well as issues and challenges faced during the year. It consists of the NBA General Manager’s review and a report from the Chair of the NBA Board. It also provides a summary of the major achievements of the NBA over the first five years of operation.

Part Two: Our role and governance

Part Two outlines the role of the NBA in the blood sector. It provides a description of the external and internal governance arrangements that guide the work of the NBA and the nature of its relationships with jurisdictions, stakeholders and suppliers.

Part Three: Our performance

Part Three reports on performance against the NBA’s Operational Plan 2007–08. It provides analysis of the NBA’s performance against the Agency Outcomes and Output Groups within the Health and Ageing Portfolio Budget Statements 2007–08.

Part Four: Our people

Part Four provides information on the NBA’s staff. It details the NBA’s staffing profile and describes human resource programs and activities.

Part Five: Future trends in blood management and horizon scanning

Part Five explores current and future developments both nationally and internationally that may in future influence the management of blood and blood-related products in Australia.

viii National Blood Authority Annual Report 2007~08

Part Six: Our finances

Part Six provides an overview of the NBA’s financial position in 2007–08, including a summary of the resources used to deliver objectives.

Part Seven: Appendices

Part Seven provides supplementary operational information. This section contains financial statements, mandatory reporting requirements (including the Freedom of Information Statement) and a comprehensive list of blood and blood-related products procured under contracts and deeds.

Part Eight: Index

Part Eight provides an alphabetical index, which allows quick reference to particular topics.

Part OneOverview

Part One provides a summary explanation of key activities and outlines the major achievements of the NBA, as well as issues and challenges faced during the year. It consists of the NBA General Manager’s review and a report from the Chair of the NBA Board. It also provides a summary of the major achievements of the NBA over the first five years of operation.

1.1 General Manager’s review

1.2 National Blood Authority Board Chair’s report

1.3 Biographies of members of the National Blood Authority Board

1.4 The first five years

2 National Blood Authority Annual Report 2007~08

1.1 General Manager’s review

It is now five years since the National Blood Authority was established, during which time we have put together an impressive portfolio of achievements. The small size of our agency has not limited the quantity and quality of our work and I would like to share our achievements with you in this, our fifth annual report.

This year, the NBA has made some significant contributions to both the national and international blood sector through the publication of a number of major guidelines, reports and papers. The Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia, a major and significant piece of work, was endorsed by Health Ministers. An international benchmarking report Fresh Blood Products – Production Benchmarking and Demand Drivers was also published and a poster was presented at the International Society for Blood Transfusion annual conference in Macau.

These publications have been a result of the increasing focus the NBA is placing on the dissemination and exchange of good-quality national and international data. In that vein, the year has seen the development of a national blood sector data strategy, which we will use to guide our work in this space. I am pleased to report excellent progress of a number of data system initiatives, which will contribute to data quality in the sector.

In conjunction with haemophilia groups, the NBA has managed the design and redevelopment of the Australian Bleeding Disorders Registry (ABDR). The ABDR will provide a clinical tool for clinicians and improved data capture and quality nationally.

This will lead to an improved understanding of product use, more effective demand modelling, supply planning and forecasting for products used in the treatment of haemophilia.

A significant step towards understanding patient safety within the blood sector was taken in 2007–08 with the publication of the NBA’s Initial Australian Haemovigilance Report. Knowing the incidence and understanding the circumstances of adverse events is crucial to facilitating changes in clinical and hospital practices to improve patient safety around blood transfusion. Jurisdictions voluntarily reported agreed adverse events and this information was compiled into a national report. Ongoing work will refine and expand this process, with the aim of being able to publish further national haemovigilance reports against a consistent reporting framework in the future.

The Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia was endorsed by Health Ministers and implemented in 2007–08. This is a significant piece of work that provides guidance to clinicians on the conditions for which intravenous immunoglobulin (IVIg) can be accessed under the national blood arrangements. Demand for IVIg continues to increase steadily and it is important that supply of IVIg is available to the

‘ We were thrilled to receive a Highly Commended award in the 2007 Comcover Risk Initiative Awards. This award recognised our continuing strength in contingency planning as demonstrated by the implementation of our Business Continuity Plan following the devastation of our offices by a severe storm last year.’


Patient blood management is the appropriate use of blood and blood components with the goals of optimising patient outcomes and reducing unnecessary exposure to allogeneic transfusion, thereby also contributing to optimum use of blood supply. This is achieved by:

employing appropriate combinations of ��medications, technological devices and medical and surgical techniques, and

using an interdisciplinary team approach. ��

In February 2008, the NBA started work to develop a framework for consideration of how to increase the knowledge and uptake of patient blood management techniques and strategies. The NBA and JBC see this work as a major focus of our activities over the next several years and it may involve the NBA in research and change management projects with the clinical community, other government bodies, clinical colleges and training institutions.

In addition to our new initiatives, we have continued to maintain our excellent work in supply planning and contract management. This financial year has seen the successful negotiation of two new contracts. First, the new imported IVIg contract offers significant value for money by shifting the risk for holding inventory to the suppliers and improving product delivery times to within 24 hours for hospitals. Second, a new standing offer for diagnostic reagents has provided public pathology laboratories with a wide choice of products and the ability to procure the most appropriate diagnostic blood products at competitive prices, quality and service levels. This contract also gives laboratories the flexibility to incorporate cutting-edge products as they become available.

patients most in need. To support the implementation of the Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia, the Jurisdictional Blood Committee (JBC) endorsed work to design and develop a National IVIg Management System (NIMS). The NIMS will capture national information around the orders, use and treatment outcomes of IVIg, and will inform demand models and supply planning in addition to furthering clinical knowledge. Work on NIMS is well under way and it is anticipated that a pilot project will be undertaken in 2009.

In trying to gather good-quality national data, the NBA recognises the different systems and processes that are used across the jurisdictions. In conjunction with the Australian Red Cross Blood Service (ARCBS), the NBA is undertaking another initiative that recognises these differences and focuses on data definitions and standards rather than new information technology (IT) solutions. This project, called ‘Blood Measures’, aims to develop a set of standard measures and data collection points that can be included in any investigation of blood and blood-related products. The project strives to facilitate good-quality research by getting expert agreement on these measures, which can lead to comparable national data.

Internally at the NBA, this year has seen significant progress on the development and implementation of the Integrated Data Management System (IDMS). IDMS will streamline the NBA’s operations, improving functionality by centralising the information we need to undertake our core business. In addition, IDMS will serve as a database that will also allow us greater capacity to collect and disseminate national data. Jurisdictions see the NBA’s dissemination of data as one of the most important value-adding activities of the NBA.

5Part One: Overview 1.1 General Manager’s review

I would like to thank the NBA Board for their guidance during the year. Under their stewardship, the NBA embarked on a number of new initiatives and was able to achieve good progress on all core deliverables

Lastly, I would like to sincerely thank the staff of the NBA whose enthusiasm, commitment and professionalism allows us to deliver all these excellent outcomes.

Dr Alison Turner

General Manager and CEO


Our work in ensuring supply of blood and blood-related products to Australians relies heavily on our relationship with the ARCBS. Following the successful signing of the ARCBS Deed of Agreement last financial year, this year has focused on an independent business study of the ARCBS, which aimed to, among other things, inform the basis of government funding to the ARCBS, and identify cost options for any improvements to the efficiency and effectiveness of the provision of those products and services. It also makes recommendations on an output-based funding model for the ARCBS.

This year also saw the opening of the ARCBS’s new principal site in Brisbane (in Kelvin Grove) which was funded by governments. Negotiations are well under way for the redevelopment of ARCBS principal sites in Melbourne and Sydney.

Our work in contingency planning was recognised this year when we received a highly commended award for risk initiatives in the 2007 Awards for Excellence in Risk Management from Comcover. This award recognises our continuing strength in contingency planning which was demonstrated in reality when our Business Continuity Plan was successfully implemented following a severe storm last year.

The NBA is also involved in contingency planning on a broader level and I am delighted that Health Ministers endorsed the National Blood Supply Contingency Plan (NBSCP) in April of this year. The NBSCP provides clear governance and a decision-making framework for the management of product shortages.


1.2 National Blood Authority Board Chair’s report

priorities in the sector. We also decided to hold every second Board meeting outside Canberra in order to visit and meet with stakeholders to ensure that the Board had current and first-hand knowledge of issues.

Our program of stakeholder engagement started with our Board meeting in Melbourne (October 2007) and continued in Sydney (April 2008). The Melbourne visit provided the Board with the opportunity to visit the facilities of CSL Ltd at Broadmeadows, and in Sydney we visited the ARCBS Clarence Street facilities. The latter visit enabled the Board to appreciate the ARCBS Business Case for the New South Wales and ACT principal site. The Board met in Canberra in February 2008 and we were delighted to meet the Parliamentary Secretary, Senator Jan McLucas, for dinner.

In addition to our detailed work program of sector issues, the Board has reviewed the manner in which we discharge our overall obligations to provide advice about the performance of the NBA’s functions. Flowing from our consideration of the Strategic Risk Management Plan, the Board worked with the General Manager on refining three specific initiatives, designed to improve and enhance the operational efficiency and effectiveness of the NBA, namely:

An organisational capability enhancement ��strategy to address the particular challenges which confront the NBA as a small specialist agency, including:

– attracting and retaining the specialised knowledge required;

– retaining appropriately skilled staff;

– developing flexibility to respond to peak workloads;

I am pleased to present the NBA Board’s annual report on its operations during the year ending 30 June 2008, as required under Section 44(2) of the National Blood Authority Act 2003.

The NBA Board was established under the National Blood Authority Act 2003, with four functions:

1. To participate in consultation with the Australian Government Minister for Health and Ageing about the performance of the NBA’s functions.

2. To provide advice to the General Manager about the performance of the NBA’s functions.

3. To liaise with governments, suppliers and other stakeholders about matters relating to the NBA’s functions.

4. To perform such other functions (if any) as specified in a written notice given by the Minister to the Chair.

Board members are selected by the Australian Health Ministers’ Conference (AHMC) and appointed by the Australian Government Minister for Health and Ageing to serve a period not exceeding four years.

2007–08 prioritiesIn 2007–08 the NBA Board held four meetings. At our meeting in June 2007, the Board advised management on appropriate priority areas for 2007–08 and I am pleased to report significant progress on these items. At that meeting, the Board also agreed to a strategy to strengthen engagement with the blood sector and resolved to initiate a program of inviting stakeholders to meet with the Board and senior management to discuss emerging

7Part One: Overview 1.2 National Blood Authority Board Chair’s report

– efficient management of written material and documentation.

An expanded stakeholder engagement ��strategy to support and guide the planning and risk management approach by the NBA. This included defining the likely objectives of each stakeholder, their influence and impact on change initiatives and the appropriate level of consultation and involvement in our work.

Improvement in the ongoing operational ��reporting and performance assessment by streamlining the monthly internal reporting with the production of a high level balanced scorecard. In particular we now have good integration of all the inputs into our planning process including our strategic risk plan and stakeholder consultation.

The Board was able to provide a broad diversity of views and input on these strategies, incorporating experiences from the public and private sectors in financial accountability, clinical and community health disciplines. The Board’s view is that the overall performance of the NBA is highly professional, with a clear commitment to ensuring value for money to funding bodies.

Below is a summary of the major areas of contribution by the Board over the past 12 months.

Fresh blood

Business study of the Australian Red Cross Blood Service

A business study into the operations of the ARCBS was completed in December 2007 and the outcomes were assessed by the Board to help the NBA analyse and prepare options for the Jurisdictional Blood Committee’s (JBC) consideration. The Board will actively assist NBA management to monitor and implement the study recommendations. Mr Ken Barker

and I represented the Board on an advisory group to the General Manager for this study.

One of the core observations of the study was recognition of the need for greater communication between the ARCBS and NBA Board members. As a result, the ARCBS Board has been invited to meet with the NBA Board — which I hope will be the first of many such meetings of the two bodies.

Australian Red Cross Blood Service principal site — New South Wales and Australian Capital Territory

The Board was consulted by the General Manager in relation to the ARCBS proposal for a new principal site in Sydney. Board input was also sought before the NBA’s assessment of the final cost position for the project and in relation to indemnities sought by ARCBS. Funding for relocation of the NSW and ACT principal site was approved by Health Ministers at their meeting held on 18 April 2008.

Commercial contracts

A new agreement with CSL Ltd

With the current CSL Ltd agreement due to expire on 31 December 2009, the Board has been actively engaged in discussions with the General Manager on the development of policy parameters to govern the new agreement.

Distribution arrangements for plasma and recombinant products

A key strategy in addressing wastage and improving performance within the supply chain is to implement the recommendations arising from the Plasma Fractionation Review for a detailed review of distribution arrangements for blood products.


could best add value. Quality data collections, data linkage projects and data integration across jurisdictions, will allow the sector to take a more professional approach to analysing potential new investments and initiatives. In developing the strategy the Board has encouraged the NBA to ensure adequate engagement by the clinical community — acknowledging the need to ensure that data systems provide the end users with real benefits. The update on this work presented in February to the Board provides a sound framework for ensuring adequate integration of data requirements for the blood sector to the wider health sector data and information frameworks and will now be progressed through an expert blood informatics group consisting of data and systems experts nominated by jurisdictions.

2008–09 focus

The Board has provided advice on the priorities for inclusion in the NBA 2008–09 Operational Plan and during this period will, as part of our overall performance monitoring obligations, maintain a strong focus on the principle of improving the effectiveness and value for money of government investment in the blood sector, particularly in the context of NBA activities in the following areas:

development of an appropriate ��methodology for assessment of proposals for products to be added to the supply plan

ARCBS Deed negotiations in light of the ��findings from the business study and the learnings from the current Deed

Plasma Products Agreement (PPA) ��negotiations to ensure continued best value for money for governments

development of a patient blood ��management strategy aimed at improving the appropriateness of use of blood and blood-related products, and

The Board has worked closely with NBA management to develop the terms of reference for the Review. The JBC endorsed the terms of reference at its February 2008 meeting and supported the proposed governance arrangements. Advice from the Board to include a suppliers’ reference group to ensure that key supplier stakeholders could provide input was integral in maintaining our commitment to effective stakeholder engagement.

Defined blood products contracts

Current defined blood products contracts with a range of suppliers are due to expire on 30 June 2009. While all contracts have extension provisions, the NBA, with Board guidance, has commenced work to determine and implement appropriate procurement action for defined blood products after this date.

Plasma industry analysis

During a major trip undertaken by the NBA General Manager and myself this year to the 14th International Plasma Protein Congress in Warsaw, we visited other European countries to engage with representatives of the plasma fractionation industry. I was pleased to see that the NBA, after only five years, has developed a well-recognised international reputation for its thorough and professional approach to plasma industry issues. The quality and price paid by Australia for the range of plasma derived and recombinant products is of leading world standard and reflects our intensive and detailed understanding and analysis of this industry.

Data activities

The Board has encouraged the NBA to develop a detailed strategy for sector data development and management that would provide clarity about roles and responsibilities across the blood sector, and in particular, how the NBA

9Part One: Overview 1.2 National Blood Authority Board Chair’s report

Finally, I would like to acknowledge the contribution of all Board members in providing sound and well-considered advice to the NBA General Manager in what is a complex sector. The sector will continue to face serious challenges in increasing its sustainability in the face of the escalating demand for blood and blood-related products and, in particular, the constant need to ensure value for money in a complex and changing broader health policy environment. I am confident that I speak for my Board colleagues when I say we look forward to continuing our role in the year to come.

Mr Garry Richardson Chair National Blood Authority Board

input to the review of the operation of ��the arrangements for the National Blood Agreement, now scheduled for completion by June 2009.

The Board has endorsed the desktop project initiated by the NBA to formalise its process of monitoring developments in relation to new techniques, technologies and products that may have applicability to the Australian blood sector. These developments have the potential to affect the blood sector in the short, medium and long term, and will offer scope for improved efficiency, efficacy and safety in nearly every area of the blood collection, processing, fractionation, distribution and use spectrum. The Board has encouraged the NBA to take a very proactive stance on this information and to provide governments with well-researched assessments and timely information on policy options and implications of these changes.


1. 3 Biographies of members of the National Blood Authority Board

Mr garry richardsonCHAIR

Mr Garry Richardson is a professional independent company director with extensive experience in the health and financial services sectors. He is a Fellow of the Australian Institute of Company Directors.

Before his retirement from his executive career at the end of 1997, Mr Richardson was Managing Director of National Mutual Health Insurance Pty Ltd (now known as BUPA Australia), Australia’s third-largest private health insurer for seven years. He was, concurrently, Vice President of the Australian Health Insurance Industry and Board member of the International Federation of Health Funds (based in the United Kingdom).

Since then, Mr Richardson has been appointed to a number of boards, mostly in the position of Chair. These included appointments by both Labor and Coalition governments at State and Commonwealth level:

Commissioner, Private Health Insurance Administration ��Council (1998–2007)

Director, Dental Health Services Victoria (1997–2000)��

Chair, Southern Health — Victoria’s largest public ��health network (1998–2003)

Chair, Housing Guarantee Fund (2002–07) ��

Director, Victorian and National Boards of Australian ��Red Cross (2005–07)

Chair, Little Company of Mary Health Care Ltd (2007–08)��

Mr Richardson’s current appointments include:

Chair — Health Super Pty Ltd (January 2001 to date)��

Independent Chair — Audit Committee, ��City of Stonnington (2000 to date)

Mr Richardson was appointed Chair of the NBA Board in May 2007.

11Part One: Overview 1.3 Biographies of members of the National Blood Authority Board

Mr Ken barker FINANCIAL EXPERT

Mr Ken Barker is currently Chief Financial Officer with New South Wales Health and is responsible for:

controlling and monitoring recurrent expenditure ��($12.5 billion, 2007–08) and revenue ($1.7 billion 2007–08)

establishing New South Wales Health financial ��management policy and strategy

overseeing the business management services involving ��insurance, risk management, taxation, benchmarking of public hospital support services and independent financial review of public and private sector initiatives.

Mr Barker has worked for New South Wales Health for 23 years and, before his present role, was involved in the financial and accounting area of the Department. He has 40 years of experience in the New South Wales Government, previously working for the Police Department, Public Works and Corrective Services.

In respect of the Australian blood service, he has been involved in the government’s financial perspectives in:

the former New South Wales Blood Transfusion Service��

the nationalisation and establishment of the ARCBS��

providing leadership in establishing the national indemnity ��arrangement for blood and blood products

providing executive input (including providing evidence) ��in defending claims for the blood-acquired HIV virus in New South Wales

providing input into the Stephen Review of the �� Australian Blood Banking and Plasma Product Sector

establishing the NBA.��

Mr Barker was appointed to the NBA Interim Board and has served as a full Board member since the inception of the NBA. He served as Chair of the National Blood Authority Audit Committee from 2003–07.


Mr rob Christie COMMUNITY REPRESENTATIVE

Mr Rob Christie has a long history of community service and experience as a health consumer representative in Australia on blood and blood-related product issues and the needs of patients and families with bleeding disorders. His son, Scott, has haemophilia A and is HCV positive.

Mr Christie’s commitment to the blood sector has resulted in appointments as:

Life Governor and Board member of the Haemophilia ��Foundation Australia (HFA) Board member since 1997, including four years as National President

Vice President of the Haemophilia Foundation, South ��Australia; Board member since 1994

Committee member of the Coagulation User and ��Advisory Group with the Australian Red Cross – South Australia; member since 1995

Vice President, Finance, World Federation of Hemophilia, ��Montreal, Canada, since 2004.

In his professional life, Mr Christie has strong business and management experience in the agricultural sector and is a business consultant with Proforma Business Communications.

His community service also includes life membership of the Apex Club in Happy Valley.

Mr Christie was appointed Community Representative on the NBA Board in May 2007.


Associate Professor David CooperPUBLIC HEALTH EXPERT

Associate Professor David Cooper is the Director of Emergency Services for the central coast of New South Wales, incorporating Gosford and Wyong emergency departments. These two departments constitute one of the largest emergency services in Australia, with a substantial critical care and trauma case load (95 000 presentations per year).

Associate Professor Cooper is also a member of the Australian Health Protection Committee, which manages health emergencies at a national level. He teaches in the field of disaster medicine at a number of Australian universities, including Sydney, Monash, Charles Darwin and Queensland. He also lectures in disaster medicine to medical students in Indonesia and Turkey.

His previous appointments included:

Foundation Chair of Disaster Response and Preparedness, ��Charles Darwin University/National Critical Care and Trauma Response Centre, Royal Darwin Hospital

Acting Deputy Chief Health Officer, NSW Health ��

Director, New South Wales Health Counter Disaster Unit. ��

Operationally, his experience includes the health response to both of the Bali bombings, the tsunami disaster and the Yogyakarta earthquake, where he led the first AusAID disaster medical team. He also has substantial experience in mass gathering planning including the Sydney 2000 Olympics, Rugby World Cup and, more recently, World Youth Day 2008.

His interest in the blood sector relates to the safe management of blood and blood-related products in critical care and emergency medicine as well as in disaster settings.

Associate Professor Cooper was appointed the Public Health Expert member of the NBA Board in May 2007.


Mr David Kalisch AUSTRALIAN GOVERNMENT REPRESENTATIVE

Mr David Kalisch was appointed Deputy Secretary in the Department of Health and Ageing in June 2006. He is a member of the department’s executive, with responsibility for Portfolio Strategies Division, Acute Care Division, the Mental Health and Workforce Division and the South Australian and Western Australian state offices of the Department.

Since the early 1990s, he has been in the Australian Government Senior Executive Service in the Departments of Social Security, Prime Minister and Cabinet, Family and Community Services, and now in Health and Ageing.

Mr Kalisch is an economist who has worked in a range of social-policy areas of government since the early 1980s. This has included policy advising and program management in diverse areas such as labour markets and employment policy, retirement incomes, family assistance, children’s services, welfare reform and, more recently, health services. Aside from these social policy and program management experiences, he has an interest in enhancing organisational capability.

In addition to these appointments, he was Principal Adviser to a former Minister for Social Security and has worked at the Organisation for Economic Co-operation and Development (OECD) in Paris in their employment programs division (1990) and social policy division (1997–98) and at the Australian Delegation to the OECD (1998–99).

Mr Kalisch was appointed the Australian Government Representative to the NBA Board in November 2006.


Dr Peter Lewis-Hughes STATE/TERRITORY REPRESENTATIVE

Dr Peter Lewis-Hughes began his distinguished career in 1986 with the public health care sector in the Australian Government health department. He assisted in structuring policy development for magnetic resonance imaging (MRI), Interventional Radiology, and the Royal Flying Doctor Service. Dr Lewis-Hughes then served as Private Secretary to the then Health Minister, Dr Neal Blewett AC. Key areas of responsibility included Medicare, pharmaceuticals, health insurance and hospitals.

Dr Lewis-Hughes was appointed to Executive Director of ACT Pathology in 1988.

In 1990, Dr Lewis-Hughes took the position of Business Manager for the Commonwealth Medical Services (Queensland) and successfully helped to develop a user-pays funding mechanism for Commonwealth medical officers. During this period he was also seconded by the then Commonwealth Department of Community Services and Health to co-author, with Dr John Deeble, the National Pathology Directions for the Macklin Review.

He was appointed Director of Strategic Management at the Greenslopes Repatriation Hospital in 1991, where he was responsible for assisting in the preparation and implementation of a blueprint for the privatisation of the hospital.

Dr Lewis-Hughes was recruited by Queensland Health in 1995 to implement structural reform agendas in key services such as pathology, biomedical engineering services and public health and forensic laboratory sciences. Following the Forster review of Queensland Health in 2005, he was appointed Executive Director of Clinical and Statewide Services with responsibility for development and reform of the Queensland Health blood program, radiology services, medication services and the oral health program. With wide-ranging experience in the health care industry at Australian Government and state levels, Dr Lewis-Hughes is especially interested in contemporary health issues as they relate to strategic and business planning for clinical services across Queensland.

Dr Lewis-Hughes was appointed to the NBA Board as the Public Health Expert in 2003 and appointed State/territory Representative in 2007.


Mr robin MichaelSTATE/TERRITORY REPRESENTATIVE

Mr Robin Michael is a health care professional with 28 years experience. He was General Manager of the Royal Darwin Hospital, Northern Territory, until December 2007 and has returned to Adelaide where he is Chief Executive Officer of Radiology Resources Pty Ltd.

Mr Michael has qualifications in pure mathematics and statistics, computing science and public health. He has managed public and private health services and worked in the government sector. His experience includes:

management — he has been head of the Metropolitan ��Health Service for the South Australian Health Commission and Executive Director, Corporate Resources for the South Australian Department of Human Services

consulting — he has been a Director of KPMG, a partner ��in Coopers & Lybrand (now PricewaterhouseCoopers) and a partner in Deloitte Consulting.

He has worked in both Australia and New Zealand in health care and enterprise resource planning implementation.

Mr Michael was appointed to the NBA Board in 2005 and he resigned in June 2008.

17Part One: Overview 1.4 The first five years

established clear governance decision-��making frameworks that integrate blood into the overall decision-making framework for health sector risk planning

built highly effective relationships with key ��stakeholders

delivered a range of safety and quality ��initiatives such as the recent Initial Australian Haemovigilance Report (2008) and the Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia (2008)

began data collections on product issues ��and usage to assist in developing policies relating to appropriate use of products, and a rigorous analysis of future supply and demand

implemented a range of strategies to ��reduce inappropriate use of blood products.

Several key policy challenges lie ahead for the NBA in the next several years, namely:

the successful management of the ��Review of Distribution Arrangements for Blood Products

new contracts with CSL Ltd and ARCBS��

finalising new guidelines on appropriate ��use of fresh blood products

collection and management of data to ��understand how we use products

future directions for patient blood ��management to reduce patient exposure to donor blood and ultimately deliver better outcomes for patients.

1.4 The first five years

Five years after the establishment of the NBA, meaningful improvements in the Australian blood sector are now in place.

The challenges in the first year were considerable — not the least being the task of creating an organisation from scratch and tackling the heady expectations arising from the National Blood Agreement. Other challenges included:

developing and managing new ��relationships at a national level

building confidence in the clinical and ��scientific communities about the roles and responsibilities of the new authority

demonstrating value for governments ��early in our existence.

Today, the NBA negotiates and manages contracts covering all the blood and blood-related products used in Australia. We also have a broad international network; coordinate a national approach to blood supply, usage and conservation; manage a diversity of stakeholder relationships; and have recently started work to drive improvements in transfusion appropriateness and blood sector performance analysis.

In the five years of operation to date, the NBA has:

improved contract management, delivering ��significant cost savings to all Australian governments

implemented a diverse and innovative range ��of supply contingency provisions that have prevented significant stock shortages


The success that this approach produced is now allowing us to embark on a slightly more adventurous approach to our responsibilities and five years out we are looking forward to delivering on actions that will further demonstrate our leadership in the blood sector. We accept that this will be dependent on the quality of our engagement with our stakeholders, and clear, consistent and regular communication of government priorities and objectives with these stakeholders.

We look forward to these challenges and the next five years.

The achievements shown in Table 1.1 have been possible because of a commitment to six principles, namely:

detailed analysis of costs, options, ��international comparators and stakeholder concerns

meticulous planning of resources and ��activities against clear goals

seeking creative and innovative ways to ��achieve better outcomes

a high-level of stakeholder involvement and ��communication, both in the planning and designing phases, as well as implementation

careful management of cautious ��implementation

regular monitoring and review for all the ��projects undertaken.

Dr Alison Turner, Ms Louise Morauta, then Chair JBC and Professor Dick Smallwood, then Chair NBA Board at the opening of the NBA premises in July 2003.


Table 1.1 Five years of achievements, 2003–08

National blood Authority Act supply obligations

Deliverable Outcome

To provide assistance:

in accordance with ��national blood arrangements to a committee referred to in those arrangements

to the Board��

to the advisory ��committees (if any) established under section 38.

Provided secretariat services to 53 JBC meetings.

JBC focus evolved from strong operational concerns to strategic developmental focus.

Board directly engaged in informing strategic advice to the General Manager.

Clinical Advisory Council established to provide detailed clinical advice and was instrumental in the development of the blood counts program.

Effective governance framework that supports consolidated policy decision-making and implementation across all jurisdictions.

To carry out national blood arrangements relating to annual plans and budgets for the production and supply of blood products and services.

National supply plan process created and implemented on an annual basis.

Presentation of plans delivered progressively earlier to Ministers each year.

Suppliers advised of indicative volumes more than six months before the commencement of plan.

Mid-year reviews designed and implemented on a regular basis from 2004.

Verification procedures for ordering and receipting, negotiated and implemented.

Suppliers provided with improved certainty and clarity of government supply requirements.

An improved level of accountability in blood expenditure.

To enter and manage contracts and arrangements for the collection, production and distribution of the blood products and services necessary to ensure a sufficient supply of blood products and services in all the states and covered territories.

New Deed with ARCBS negotiated and signed.

New Deed with CSL Ltd negotiated and signed.

New contractual arrangements for diagnostics implemented.

New Standing Order arrangements for the importation and implementation of IVIg.

New Deeds for imported plasma and recombinant products negotiated and signed.

No stock-out of any product in five years.

Substantial savings achieved.

Improved shelf life of some products.

Improved product access for patients.

Improved products and product range.



Deliverable Outcome

To carry out national blood arrangements to ensure that there is a sufficient supply of blood products and services in all the states and covered territories.

Effective management of the development of:

Factor VIII and Factor IX Guidelines (2006) ��

Criteria for the Clinical Use of Intravenous ��Immunoglobulin (IVIg) in Australia (2008).

Guidelines on the prophylactic use on ��RhD immunoglobulin (anti-D) in obstetrics (2004).

Biostate shortage contingent supply ��management.

High-quality, evidence-based guidelines for high cost products developed in consultation with the clinical community and published.

To carry out national blood arrangements relating to.

(a) Safety and quality measures.

ARCBS requests to governments for funding for increased levels of leucodepletion, bacterial contamination and sample archiving assessed.

Rolled out recombinant fVIII for all patients seeking this product.

Obtained funding for ARCBS to implement TGA requirement for changes to haemoglobin tests.

Blood standard requirements integrated into hospital accreditation reform.

Product recipients have access to a selection of some of the world’s best products.

Government approved 100% leucodepletion and 100% bacterial contamination testing of platelets.

(b) Contingency measures and risk mitigation measures for the supply of blood products and services.

Agreed National Blood Supply Contingency Plan.

Risk mitigation strategies incorporated into plasma and recombinant products contracts.

New management arrangements for National Managed Fund instigated.

In-country reserve requirements.

Effective coordination of national management of blood product shortages.

Blood sector integrated into health contingency planning.

Hierarchy of risk response options.

To liaise with and gather information from governments, suppliers and others about matters relating to blood products and services.

Ongoing horizon scanning project implemented.

Fresh Blood Products: Production Benchmarking and Demand Drivers released.

Strategic workshops initiated for JBC.

Created Blood Suppliers Forum, Professional and Community Forum and the CAC.

Engaged stakeholders in specific projects, eg ABDR redevelopment, NIMS and product tender processes.

Established haemovigilance project working group.

Established an EWG to manage the review of guidelines for use of fresh blood components.

All contracts and major projects informed by international research, government, clinical and community needs.



Deliverable Outcome

To provide information and advice to the Minister and the Ministerial Council about matters relating to blood products and services.

Approximately 20 papers have been submitted to AHMC for ministerial approval.

Recommended position on barcoding policy for blood products.

Ministers provided with consolidated strategic national policy and funding advice.

Ministers provided with accurate and timely advice.

To carry out national blood arrangements relating to the funding of the supply of blood products and services, and the NBA’s operations.

Established the NBA with independent infrastructure and services, including IT systems; outsourcing of noncore business systems; appropriate and best practice governance arrangements; and key policies and processes to support the operation of the NBA.

Maintained an active recruitment program to address new functions.

Implemented an NBA Fellows program to ensure the NBA has access to high-quality advice.

Implemented CAC to ensure the NBA has access to high level clinical advice to guide policy and program development.

Recognition as high performing agency through:

PM’s Silver Award for Excellence in Public ��Sector Management and

Comcover Award for Excellence in ��Risk Initiatives. Highly Commended in the category of Risk Initiative.

NBA recognised for public service excellence.

NBA recognised for high quality risk management procedures.


National blood Authority Act — Safety & Quality obligations

Deliverable Outcome

Ensure that funding and supply contracts for the national blood supply include appropriate obligations on suppliers to meet safety and quality standards and to enforce those obligations.

All contracts comply with this requirement.

Requirement for additional pathogen inactivation steps in some CSL Ltd products in new PPA.

Co-ordinated supply response for implementation of vCJD mitigation steps.

Australian supply contracts provide some of the world’s best products.

Maintain a systematic approach to identify new developments and to provide a clearinghouse and coordination function for information in relation to new developments.

Framework for assessment of new technologies established.

Supply contracts to provide information on new and emerging issues.

Blood Sector Data Strategy

Framework to ensure that the sector is informed and well poised for timely responses to new and emerging pressures.

Standardised approach to information management and data systems development in the blood sector to be implemented.

Facilitate coordination, integration, cooperation and information exchange between the NBA and other bodies with a safety and quality role in the Australian blood sector, and between those other bodies.

Coordinated blood sector input to National Safety and Quality in Healthcare Commission accreditation reforms.

Provided input to the Information Strategy for the National Safety and Quality in Healthcare Commission.

Designed ABDR with input from NEHTA.

Red Cell Utilisation Workshop sharing data between states.

Co-sponsored support for market research on red cell prescribing behaviours of doctors (with NSW Government).

Blood issues integrated into health S&Q reform agenda.


National blood Authority Act — Safety & Quality obligations

Deliverable Outcome

Provide information and advice to the JBC and to the Ministerial Council (through the JBC).

Provided information on new and emerging products, technologies and procedures to JBC on a regular basis.

Established strategic workshops for JBC.

Prepared more than 500 papers to JBC.

Sound coverage and management of operational issues.

Policy directions to be informed by careful consideration of emerging information.

Act on behalf of the JBC to purchase and organise activities under Clauses 34 (a), (b) and (c).

Started distribution review.

Established a better practice fund to develop local ideas to national application.

Four projects commenced under this fund.

Facilitate the development of national information systems for S&Q issues in relation to the Australian blood sector.

Haemovigilance reporting design requirements.

Australia’s first haemovigilance report to guide sector reform.

ABDR redevelopment to provide improved demand data.

Awareness of transfusion-related reactions increased.

Australia now meets best international practice in haemovigilance.

High-quality, evidence- based guidelines for high cost products developed in consultation with the clinical community and published.

ABDR = Australian Bleeding Disorders Registry; AHMC = Australian Health Ministers’ Conference; ARCBS = Australian Red Cross

Blood Service; CAC = Clinical Advisory Council; EWG = expert working group; GM = general manager; JBC = Jurisdictional

Blood Committee; NBA = National Blood Authority; NEHTA = National E-Health Transition Authority; NMF = National Managed

Fund; PPA = Plasma Products Agreement; S&Q = safety and quality; TGA = Therapeutic Goods Administration; vCJD = variant

Creutzfeldt-Jakob disease.


National Blood Authority – First Five Years Highlights

NBA established

NBA Board meetings

commenced

JBC meetings commenced

National Reserve contract extended

National IVIg Workshopconvened

Tsunami response

First National Supply

Plan & Budget approved

Contingent imported IVIg supply

arrangements implemented

New Diagnostic Standing Offer implemented

2003–04 2004–05

Focus on improving appropriateness of use commenced

Recombinant policy

implemented

National Managed Fund administrative

arrangements implemented

CSL Ltd PPA signed

First ARCBS Strategic Capital

Investment Plan approved

NBA Fellows program

2005


Supply risks detailed

New recombinant

contracts implemented

International Fresh Blood Production

Benchmark Report

PM’s Silver Award for Excellence in

Public Administration

awarded

ARCBS Deed

Signed

FVIII/FIX Guidelines released

Successful recovery from

flood of premises

National Blood Data Workshop

convened

ARCBS Business Study finalised

IVIg Criteria for Use released

Distribution Review

commenced

National Blood Supply

Contingency Plan endorsed by

Ministers

Initial Australian Haemovigilance Report released

–06 2006–07 2007–08

Clinical Advisory Council created

Comcover Highly Commended

Award for Risk Initiatives

Part Two outlines the role of the NBA in the blood sector. It provides a description of the external and internal governance arrangements that guide the work of the NBA and the nature of its relationships with jurisdictions, stakeholders and suppliers.

2.1 The NBA role

2.2 Background

2.3 The blood supply chain

2.4 External governance arrangements

2.5 Internal governance arrangements

Part TwoOur role and governance


2.1 The NBA role

collaborating with all governments and ��other relevant parties to ensure that Australia’s blood supply is adequate, safe, secure and affordable

national contingency planning for ��blood supplies

promoting adherence to national safety ��and quality standards

developing and implementing national ��strategies to encourage better use of blood and blood-related products.

The NBA Corporate Plan 2006-09 (approved by all Health Ministers), shows when and how specific activities will be carried out. The execution and timing of these activities depends on the funding provided by governments, the endorsement of priorities by the Jurisdictional Blood Committee (JBC) and decisions made by the Australian Health Ministers’ Conference (AHMC).

The National Blood Authority (NBA), an Australian Government agency within the health and ageing portfolio, is responsible for ensuring the adequate, safe, secure and affordable supply of blood and blood-related products.

The National Blood Authority Act 2003 and National Blood Agreement outline the role of the NBA. This role includes:

coordinating national supply and demand ��planning on blood and blood-related products and purchasing those products on behalf of all Australian governments

negotiating and managing contracts with ��suppliers of blood and blood-related products to ensure a value-for-money supply and an agreed single national pricing schedule

implementing an efficient demand-driven ��system so that the blood supply system is highly responsive to needs

29Part Two: Our role and governance 2.2 Background

2.2 Background

approach to managing Australia’s blood supply through the establishment of a national blood authority.

The National Blood Agreement was approved by the AHMC in November 2002 and was subsequently signed by all Health Ministers. Legislation allowing for the establishment of the NBA passed through both Houses of Parliament unopposed and the NBA came into existence on 1 July 2003. National Policy objectives for these arrangements are detailed in the National Blood Agreement extract set out in Table 2.1.

The NBA was established in July 2003 under the National Blood Authority Act 2003. It operates in accordance with the National Blood Agreement to improve and enhance the management of Australian blood banking and plasma product sector at a national level.

The 2001 Review of the Australian Blood Banking and Plasma Product Sector, chaired by the Rt Hon Sir Ninian Stephen, concluded that Australia’s blood supply system was highly fragmented and costly. The report’s core recommendation was to introduce a national

Table 2.1 The National Blood Agreement: objectives of governments

1. The primary policy objectives for the Australian blood sector are:

(a) to provide an adequate, safe, secure and affordable supply of blood products, blood related products and blood related services in Australia; and

(b) to promote safe, high quality management and use of blood products, blood related products and blood related services in Australia.

2 In pursuing the primary policy objectives, the Parties will have regard to the following secondary policy aims:

(a) to meet international obligations and standards;

(b) to maintain reliance on voluntary, non-remunerated donations of whole blood and plasma;

(c) to promote national self-sufficiency;

(d) to provide products to patients, free of charge and based on clinical need and appropriate clinical practice;

(e) to promote optimal safety and quality in the supply, management and use of products, including through uniform national standards;

(f) to make best use of available resources, and to give financial and performance accountability for the use of resources by all entities involved in the Australian blood sectors;

(g) to undertake national information gathering, monitoring of new developments, reporting and research in relation to the Australian blood sectors;

(h) to maintain flexibility and capacity to respond in a timely manner to changing circumstances and needs;

(i) to ensure public support and confidence in the Australian blood sector; and

(j) to work towards optimal access to blood products and blood-related products across the nation, ensuring that patients continue to access the blood products and blood related products their clinicians determine will best meet their needs so far as practicable in accordance with national best practice based on clinical guidelines. This clause does not preclude States and Territories from altering the range of blood products and blood related products that are prescribed and received in their jurisdiction.


Australian, state and territory governmentsAs signatories to the National Blood Agreement, all governments are responsible for:

establishing the policy framework and ��specific policies relating to the national blood supply

overseeing the NBA’s management of the ��blood supply arrangement

fostering the development and ��implementation of best practice systems to promote efficient use and minimal wastage of blood and blood-related products

providing information on demand for blood ��and blood-related products

managing local issues.��

Therapeutic Goods AdministrationThe Therapeutic Goods Administration (TGA) is the regulator for blood and blood-related products in Australia. The TGA is responsible for:

regulating the sector in terms of the ��efficacy, safety and quality of blood and blood-related products under the Therapeutic Goods Act 1989

auditing of good manufacturing practice��

product recalls��

modifying safety standards��

issuing directives such as donor deferral.��

Australia’s blood supply consists of fresh, plasma-derived and recombinant products that are vital in the treatment and management of a diverse range of clinical conditions affecting thousands of Australians every day. Australia’s blood sector is funded jointly by the Australian and state and territory governments, with contributions of 63% and 37%, respectively. In 2007–08, governments provided the NBA with $720.6 million to procure and manage Australia’s blood supply (see Table 2.2). Since the establishment of the NBA, governments have spent $2934.7 million on blood and blood-related products.

Table 2.2 Government provided funding to procure and manage the blood supply

Year Amount ($ million)

growth (%)

2003–04 460.5 –

2004–05 536.8 16.6%

2005–06 577.4 7.6%

2006–07 639.4 10.8%

2007–08 720.6 12.7%

Total 2934.7 (average) 11.9%

The following pages outline the roles and responsibilities of the key stakeholders involved in the Australian blood supply chain as set out in Figure 2.1.

2.3 The blood supply chain

31Part Two: Our role and governance 2.3 The blood supply chain

Contracts with suppliers for the provision of blood and blood-related products under standing offer arrangements include:

CSL Ltd, DiaMed Australia Pty Ltd, Ortho-��Clinical Diagnostics Inc (USA) and Australian Laboratory Services Pty Ltd for the provision of diagnostic reagents

CSL Ltd and Octapharma Australia Pty Ltd ��for the provision of overseas-sourced IVIg

Baxter Healthcare Pty Ltd, Wyeth Australia ��Pty Ltd and Novo Nordisk Pharmaceuticals Pty Ltd for the provision of a range of defined blood products.

A standing offer is not a contract but a continuing offer by a supplier or suppliers to provide specified goods and services for a predetermined length of time, usually at a predetermined price. No contract is made until an order is placed which invokes the terms and conditions of the standing offer.

Suppliers of blood and blood-related productsThe NBA contracts with a number of suppliers of blood and blood-related products, including:

the Australian Red Cross Blood Service ��(ARCBS), for the collection of red cells, platelets and plasma from donors; production, testing and distribution of fresh and some manufactured products; and the provision of donated plasma to CSL Ltd

CSL Ltd, for fractionating plasma supplied ��by the ARCBS, and supplying a range of products

other pharmaceutical companies that ��are responsible for the supply and some distribution of a range of imported blood products; either the product is not produced in Australia or domestic production capacity cannot meet demand.

DonorsAustralian Red

Cross Blood Service

Testing and processing

Plasma

Fresh blood products

CSL LimitedAustralian Red

Cross Blood Service

Health providers

Patients

Overseas manufacturers

Recombinant products

Plasma-derived products

Imported products

Figure 2.1 Australian blood supply chain


2.4 External governance arrangements

The key governing bodies in the Australian blood sector, their roles and relationships with each other are set out in the National Blood Agreement and the National Blood Authority Act 2003. They are depicted in Figure 2.2.

Australian Health Ministers’ Conference


Therapeutic Goods Administration

Australian Health Ministers’ Advisory Council

Clinical, Technical and Ethical Principal Commitee

Jurisdictional Blood Committee

NBA Board

Minister for Health and Ageing

Suppliers of plasma products

Suppliers of recombinant products

Suppliers of fresh blood products

Suppliers of diagnostic products

Figure 2.2 Governance structure of the Australian blood sector

33Part Two: Our role and governance 2.4 External governance arrangements

Minister for Health and AgeingThe Australian Government Minister for Health and Ageing, the Hon Nicola Roxon MP, is responsible under the National Blood Authority Act 2003 for the appointment of the National Blood Authority Board and General Manager, for determining additional functions of the NBA and for issuing policy principles the NBA must comply with in the performance of its functions. The Minister carries out these statutory roles with endorsement from all health ministers in the AHMC. The NBA falls within the health and ageing portfolio.

Senator Jan McLucas, Parliamentary Secretary to the Minister for Health and Ageing, has portfolio responsibility for blood issues including oversight of the NBA.

Australian Health Ministers’ Advisory Council (AHMAC)The Australian Health Ministers’ Advisory Council (AHMAC) provides support to the AHMC. It advises the AHMC on strategic issues relating to the coordination of health services across the nation and, as necessary, with New Zealand. The Council considers blood sector matters referred to it by the Jurisdictional Blood Committee (JBC) and the Clinical, Technical and Ethical Principal Committee (CTEPC) and reports, as necessary, to the AHMC. The AHMAC has no statutory power and decisions are reached by consensus.

Australian Health Ministers’ Conference (AHMC)The AHMC is responsible for overseeing and managing the blood sector. It sets the governance, policy and financial frameworks under which the NBA operates. In 2007–08, key decisions made by the Ministers relevant to the blood sector included:

funding for the 2008–09 National Supply ��Plan — which included the implementation strategy for universal leucodepletion and universal bacterial contamination testing, and adherence to several new requirements arising from the Council of Europe’s Guide to the Preparation, Use and Quality Assurance of Blood Components, 12th edition (2006)

funding and indemnity arrangements for ��the NSW and ACT principal site for ARCBS processing and manufacturing

endorsing the National Blood Supply ��Contingency Plan (NBSCP)

approving the �� Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia (2007) and the associated funding policy statement.


services; and technologies. It also oversees the NBA’s role in blood supply contracting. JBC is the primary body responsible for providing advice and support on these matters to the AHMC through the CTEPC — of which it has been a subcommittee since September 2006 — and the AHMAC. The NBA provides secretariat services to JBC.

National Blood Authority BoardThe NBA Board provides advice to the NBA General Manager regarding the performance of the NBA. It also liaises with governments, suppliers and other stakeholders on matters relating to the NBA’s functions. The NBA Board is an advisory body; it has no capacity to engage personnel or to enter into dealings with other parties, nor does it hold a governance role.

Clinical, Technical and Ethical Principal Committee The CTEPC was established in 2006 to consider and provide advice to the AHMAC on clinical, technical and medico-ethical developments that are likely to affect the sector and to determine the policy implications of these developments on the delivery and management of healthcare and other services.

Jurisdictional Blood CommitteeAll Australian governments are represented on the JBC, which was established by the National Blood Agreement in 2003. The JBC is the conduit between governments and the NBA on blood policy; demand; supply planning and product distribution; funding and evidence-based approaches to emerging products;

35Part Two: Our role and governance 2.5 Internal governance arrangements

Ageing under the Act; policy decisions of the AHMC and the JBC; and Australian Government policy and compliance requirements relating to Australian Government agencies.

At 30 June 2008, the executive management of the NBA comprised the following staff:

General Manager and CEO, Dr Alison Turner��

General Counsel, Mr Michael Stone��

Deputy General Manager, Fresh Blood Supply, ��Ms Helen Fowler (acting for Gordon Lee Koo)

Deputy General Manager, Corporate and ��Blood Counts, Ms Stephanie Gunn

Deputy General Manager, Contract ��Management and Supply Planning, Mr Leigh McJames.

The NBA’s organisational structure is shown in Figure 2.3.

2.5 Internal governance arrangements

The NBA General Manager is ultimately responsible and accountable for the NBA under the Financial Management and Accountability Act 1997. The General Manager is a statutory officer, responsible to the Minister for Health and Ageing. The General Manager is responsible for the management of the NBA and the implementation of blood policy decisions and is the Chief Executive Officer (CEO) of the NBA and Agency Head under the Public Service Act 1999.

Under the National Blood Authority Act 2003, the General Manager is required to keep the NBA Board advised of the NBA’s operations. This involves requesting advice from the NBA Board on strategic matters relating to the functions of the NBA and having regard to this advice. The General Manager also has regard to policy principles issued by the Minister for Health and

Dr Alison Turner

Mr Leigh McJames

Deputy General Manager Contract Management and

Supply Planning

Mr Michael Stone

General Counsel

Mr Gordon Lee Koo

Deputy General Manager Fresh Blood Supply

Ms Stephanie Gunn

Deputy General Manager Corporate andBlood Counts

Fresh Blood ProductsIT Business Services

and Communications

Blood Counts

National Managed Fund

Planning and Risk Management

Schedule 4 Product and Service Change

ProposalsHuman Resources

Secretariat

Legal ServicesBudget and Financial

Management

Supply Planning

Contract Management (Commercial)

Projects

Figure 2.3 The NBA’s organisational structure


Dr Alison Turner

Dr Alison Turner was appointed General Manager and CEO in August 2003. From 1997–2003 she was CEO of the Australian Pesticides and Veterinary Medicines Authority. She has previously held a number of senior government executive positions in the health and primary industries’ sectors and has represented Australia internationally in many forums.

Dr Turner has postgraduate research qualifications in medical pharmacology from Sydney University and holds a Bachelor of Veterinary Science degree from Melbourne University.

Senior executive management biographies

Mr Michael Stone

Mr Michael Stone is the NBA General Counsel. He has extensive experience in providing legal advice and services for a wide range of Australian Government agencies in the fields of commercial and public law; agency governance and accountability; and the development and implementation of legislation and administrative schemes.

Mr Stone practised for eight years with the Australian Government Solicitor, including as an outposted inhouse lawyer for a number of clients. He joined the Legal Services Branch of the Australian Government Department of Health and Ageing to work on a range of significant ‘blood’ matters, including the development of the National Blood Agreement and the establishment of the NBA.

Mr Stone has worked with the NBA since its inception in 2003.


Ms Stephanie gunn

Ms Stephanie Gunn is the NBA Corporate and Blood Counts Manager and has also been responsible for the management of the NBA Blood Counts Program since May 2007. She has qualifications in economics and broad-ranging experience in policy, program and contract management in the analysis of regional, industry, local government and community development.

Ms Gunn joined the Australian Government Department of Health and Ageing in 1996, working in the Minister’s office, and then moved to senior management roles in ageing and community care, and corporate management, focusing on corporate governance, procurement and planning.

Ms Gunn joined the NBA in November 2003.

Mr Leigh McJames

Mr Leigh McJames oversees the establishment and management of commercial contracts and supply planning. He is the Relationship Manager for the commercial suppliers Baxter Healthcare, CSL Ltd, Octapharma (Australia) Pty Ltd, Novo Nordisk Pharmaceuticals Pty Ltd and Wyeth Australia Pty Ltd. He has a varied background in the Department of Defence, including senior roles in the management of government corporate support; acquisition and procurement; logistics; and the development and implementation of government strategic defence policy.

He has also filled representational and advisory appointments at the Australian Embassy in Washington and in Baghdad as part of the coalition rebuilding Iraq.

Mr McJames joined the NBA in November 2006.


Mr gordon Lee Koo

Mr Gordon Lee Koo was the NBA Relationship Manager for the ARCBS until May 2008. He has qualifications in public sector management and business administration. Prior to his appointment to the NBA, Mr Lee Koo was Deputy Chief Executive of Canberra Hospital. His background includes: health services policy; planning and purchasing; managing the delivery of hospital, community and public health services; and corporate management encompassing finance, human resources and information services.

He has held management and leadership positions in a range of Australian Government, state and territory agencies at the executive level since 1983.

Mr Lee Koo commenced at the NBA in March 2005 to May 2008.

Audit Committee Chair

Ms Jennifer Morison FCA, FCPA and FAIM

Ms Morison is a Chartered Accountant (FCA) with twenty seven years of broad experience in the profession and commerce. Her career has included audit, taxation, management consulting, corporate advisory work and consulting to government. In 1996, Ms Morison formed her own business, Morison Consulting Pty Limited which specialises in providing strategic financial management advice to senior executives within the government sector. She was awarded a Centenary medal in 2000 for her services to the accounting profession.

Ms Morison has been a board member of the Gungahlin Development Authority, the Kingston Foreshore Development Authority, Growth Centres Commission (NSW), ACTION and the Institute of Chartered Accountants in Australia. She is currently on the Board of the Australian Institute of Management and is the Deputy Chair of the ACT Land Development Agency.

Ms Morison is a leading consultant in the area of public sector financial management reform in Australia and is an independent member and Chair of a number of Commonwealth and ACT Government department audit and risk committees, including Centrelink, Department of Human Services, Department of Education and Workplace Relations and Department of Families, Housing, Community Services and Indigenous Affairs.

Ms Morison was appointed Chair of the NBA’s Audit Committee in 2007, having been a member since 2004.


WEEK 4WEEK 3WEEK 2WEEK 1

Operational reporting

Risk reporting

Project reporting

Discussion of strategic issues including:

Arising policy issues

Consideration of new projects plans

Outcome and review of audits

Progress of key business processes and

management instructions

Performance improvement proposals

Discussion of strategic issues including:

Arising policy issues

Consideration of new project plans

Strategy and planningPerformance improvementStrategy and planningPerformance management

and reporting

Figure 2.4 Executive management monthly program

The Audit Committee met six times in 2007–08 and assists the NBA in meeting its corporate governance responsibilities. The membership of the Committee included:

an independent Chair, Ms Jenny Morison��

two members of the NBA Board, ��Mr David Kalisch and Mr Ken Barker

a second independent member, ��Mr Mick Roche.

Representatives from the Australian National Audit Office and the NBA’s internal auditors may also attend the Audit Committee meetings as observers.

Executive management frameworkThe senior executive team is supported in its overall internal governance obligations by the executive management group on a daily basis and through a monthly cycle of performance reporting, improvement and strategic planning as depicted in Figure 2.4.

NBA Audit CommitteeThe role of the Audit Committee is to provide expert advice to the General Manager on ways to enhance the NBA’s control framework, improve the objectivity and reliability of externally published financial information, and meets with all its compliance requirements and obligations.


Relationship with external auditorsThe NBA acknowledges the assistance provided by our external auditors during 2007–08, which has enabled the NBA to implement improvements in our internal governance and control frameworks.

External liaison and scrutinyThe NBA participated in only one cross agency external audit in 2007–08, focussing on agency management of their websites. The NBA understands that the report from this audit will be released in the first quarter of 2008–09.

The NBA and the Audit Committee review the audit charter and audit program annually. In 2007–08 the Committee provided advice on the:

internal audit program, reports and findings��

interim financial reports��

certificate of compliance framework��

NBA key business processes��

NBA’s annual financial statements��

compliance with legislative and policy ��obligations such as the Business Continuity Plan (BCP), the Fraud Control Plan, the Risk Management Plan and Process, revised Chief Executive Instructions and Operational Plan and the NBA Instrument of Delegation

Part Three reports on performance against the NBA’s Operational Plan 2007–08. It provides analysis of the NBA’s performance against the Agency Outcome and Output Groups within the Health and Ageing Portfolio Budget Statements 2007–08.

3.1 Outcome performance report

3.2 Performance indicators

3.3 Management of fresh blood products

3.4 Commercial contract management

3.5 Blood Counts

3.6 Supply and data management

3.7 Budget and financial management

3.8 Sector risk management

3.9 Corporate performance

Part ThreeOur performance


The National Blood Authority’s (NBA) performance is reported against the Agency Outcome and Output Group reported in the Health and Ageing Portfolio Budget Statements 2007–08.

3.1 Outcome performance report

Table 3.1 Extract of NBA key performance indicators reported in the Health and Ageing Portfolio Budget Statements 2007–08

Performance Information for Administered Programs

Indicator Measured by reference Point or Target

Administered Funding – National Blood Authority

Informed decisions on the quality of use and demand for blood and blood services.

The implementation of an operational system to provide accurate and timely data.

Operational system implemented by June 2008.

Performance Information for Departmental Outputs

Indicator Measured by reference Point or Target

Output Group 1 – Meet product demand through effective planning and the management of supply arrangements

Efficient management and coordination of Australia’s blood supply in accordance with the National Blood Agreement between the Australian Government, State and Territory Governments.

The level of satisfaction of all funding jurisdictions on the planning, management and coordination of the blood supply.

A high level of satisfaction from all funding jurisdictions.

Product available meets jurisdictional identified clinical needs.

The NBA uses contestability and expertise to drive improvements in product prices and product quality.

Product price and quality. New product prices favourable in real terms with previous prices and compared to available international benchmarks. Stakeholders satisfied that product quality improving.

Agreed risk management/mitigation plans in place for the security of supply with the blood sector and the supply of most products is secure and exceptions managed effectively.

The NBA accurately predicts demand for the supply of blood and blood related products.

The NBA predictions are within a 5% variance of total National Administered Budget and/or less than the variance of the previous year.

Table 3.1 shows an extract from these budget statements to highlight key performance indicators and specific activities for the NBA in 2007–08.

NBA’s outcome — ‘Australia’s blood supply is secure and well managed.’

43Part Three: Our performance 3.2 Performance indicators

3.2 Performance indicators

This section reports against the NBA’s results in the 2007–08 reporting period and comments are offered in relation to the performance indicators relative to the output.

Efficient management and coordination of Australia’s blood supplyTo ensure efficient management and coordination of Australia’s blood supply, the NBA has supply contracts with various suppliers of blood and blood-related products that it manages closely to ensure that demand for these products is always met. Table 3.2 shows these suppliers.


Table 3.2 Blood and blood-related products purchased in 2006–07 and 2007–08, by supplier

2006–07 2007–08

Supplier Products Purchased Amount ($ millions)

Amount ($ millions)

CSL Ltd Plasma Products

– albumin products

– immunoglobulin products

– Rh(D) immunoglobulin (including IVIg and hyperimmune products)

– plasma-derived clotting factors

Diagnostic Reagent Products

– blood grouping sera

– reagent red cell products

Defined Blood Products

– Factors XI and XIII

– Imported IVIg

Management of National Reserve

145.10 159.90

Australian Red Cross Blood Service

Fresh Blood Products

– whole blood

– red blood cells

– platelets

– clinical fresh frozen plasma

– cryoprecipitate

– plasma for fractionation

305.77 385.03

Baxter Healthcare Pty Ltd


– Recombinant Factor VIII

– Protein C

– Factor VII concentrate

– Factor Eight Inhibitor Bypass Agent (FEIBA)

– WinRho

71.53 80.08

Wyeth Australia Pty Ltd


– Recombinant Factor VIII

– Recombinant Factor IX

28.88 42.38

Novo Nordisk Pharmaceuticals Pty Ltd


– Recombinant Factor VIIa

26.95 17.43

Octopharma Pty Ltd Defined Blood Products

– Imported IVIg

22.24 34.26

45Part Three: Our performance 3.2 Performance indicators

DiaMed Australia Pty Ltd




0.80 0.94

Ortho-Clinical Diagnostics (Johnson & Johnson Medical Pty Ltd)




0.25 0.37

Australian Laboratory Services Pty Ltd




0.05 0.05

Total Purchases of blood and blood-related products 601.55 720.45

All amounts exclude GST

In 2007–08 the NBA managed 13 blood supply contracts and arrangements. Of these, seven were newly negotiated and none were subject to variation. Table 3.3 shows the new blood product contracts that were negotiated and concluded in 2007–08.

Improvements in price and product qualityThe NBA has negotiated contracts with suppliers that have provided recurring annual savings to the jurisdictions for the supply of blood and blood-related products since 2003–04. Savings for 2007–08 are estimated at $26 million based on a comparison of prices that would have been paid under previous contracts and indexation. These savings have been achieved after extensive analysis of benchmark products, close international networking, and consultation with industry analysts. These price savings have been achieved alongside improvements in product quality. People with bleeding disorders have given very positive feedback on the range, quality and service support for the new products. This is reflected in the uptake of these new products — see Figures 3.9 and 3.10.

National administered budget performanceThe NBA administered budget is completed annually as part of the National Supply Plan and Budget process agreed by the Australian Health Ministers’ Conference (AHMC). The NBA, in consultation with jurisdictions, reviews the National Supply Plan and Budget annually as part of the mid-year review process to adjust jurisdictional funding requirements as a result of the first six months expenditure. As depicted in Figure 3.1, the NBA’s performance in forecasting and managing the National Supply Plan and mid-year review budget has improved since its inception to 2007–08. In 2007–08, actual expenditure varied by 3% (compared to less than 1% in 2006-07) against the National Supply Plan and Budget and less than 0.2% against the mid-year review. The main driver for the change from the original budget in 2007-08 was increased demand for IVIg, FEIBA and Recombinant Factor VIII.

The budget for 2003–04 was not set by the NBA, as the NBA was not established until 1 July 2003.


Figure 3.1 Performance of National Blood Authority: actual funding versus budgets

82%84%86%88%90%92%94%96%98%

100%102%

Actuals

Mid Year Update

Original AHMC Budget

2007-082006-072005-062004-052003-04

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

102%

ActualsMid Year UpdateOriginal AHMC Budget

2007–082006–072005–062004–052003–04

Financial year

% o

f A

ctu

al C

ost

Supplier Implementation Description of Contract

CSL Limited From November 2007 For the Supply of Diagnostic Reagents

DiaMed Australia Pty Ltd From November 2007 For the Supply of Diagnostic Reagents

Ortho-Clinical Diagnostics (Johnson & Johnson Medical Pty Ltd)

From November 2007 For the Supply of Diagnostic Reagents

Australian Laboratory Services Pty Ltd

From November 2007 For the Supply of Diagnostic Reagents

Octapharma Australia Pty Ltd From December 2007 For the Supply of Overseas sourced IVIg

CSL Limited From January 2008 For the Supply of Overseas sourced IVIg

CSL Limited From January 2008 Management of the National Reserve of Plasma Products.

Table 3.3 New blood product contracts negotiated, 2007–08

47Part Three: Our performance 3.3 Management of fresh blood products

ARCBS funding and product mixFunding to the ARCBS increased from actual funding of $327.1 million in 2006–07, to an agreed budget of $370.2 million in 2007–08 (see Table 3.4).

The ARCBS continued to be funded on a grant basis during 2007–08. However, the Australian Red Cross Society Board has indicated its support for the implementation of the output funding regime as defined under the terms of the ARCBS Deed. When implemented, this will mean that states and territories pay only for the products and services they order and receive. It is expected the output funding model will be implemented from 1 July 2008.

The growth in funding reflects increased demand and changes in the product mix for fresh blood products. Figures 3.2 and 3.3 show the changes in product mix for red blood cells and platelets over the past five years.

Table 3.4 Australian Red Cross Blood Service, annual funding commitments, 2003–08

Year Amount ($ million)

% growth

2003–04 247.8

2004–05 277.0 11.8

2005–06 297.7 7.5

2006–07 327.1 9.9

2007–08 370.2 13.2

Total 1519.8 (average) 10.6

3.3 Management of fresh blood products

The ARCBS collects fresh blood from voluntary donors for the purposes of manufacturing a variety of blood products. These products are used for the treatment of major medical conditions such as cancer; heart disease; stomach and bowel disease; liver and kidney disease; haemophilia; and to treat newborn babies and pregnant women. Donated blood is also used to help people who suffer traumatic incidents such as accidents, burns, and during or as a result of surgery. ARCBS also collects plasma, which is provided to CSL Ltd for fractionation into a variety of products to meet the needs of the health sector.

The NBA manages the relationship with the ARCBS — the sole supplier of fresh blood products in Australia — and is responsible for negotiating and managing the ARCBS Deed of Agreement. The NBA also manages a number of projects involving ARCBS, as well as providing secretariat and project management support for the National Managed Fund (NMF) and the National Blood Arrangements Schedule 4 process.


Figure 3.2 Product mix of red blood cells issued by the Australian Red Cross Blood Service, 2003–08

Figure 3.3 Product mix of platelets issued by the Australian Red Cross Blood Service, 2003–08

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

LeucodepletedBuffy CoatWhole Blood

2007–082006–072005–062004–052003–04

Financial year

Un

its

2007–082006–072005–062004–052003–04

Financial year

Un

its

0

800 000

900 000

600 000

700 000

300 000

400 000

500 000

200 000

100 000

Buffy Coat LeucodepletedWhole Blood


positive aspects of ARCBS’s delivery of the blood service in Australia. The study also found that the ARCBS is striving to improve its services and management.

The business study has, however, pointed out a number of areas for improvement, including the identification of efficiency measures that have the capacity to deliver cost savings in the medium term. A number of these require up-front project funding, but will potentially achieve savings even in the short term. The ARCBS has yet to validate these savings. The NBA will actively pursue progression of these measures with ARCBS, including the identification of possible funding sources for project costs should these be required.

The report and its recommendations are to be provided to the AHMC for consideration at the AHMC July 2008 meeting.

ARCBS Deed of AgreementDuring 2007–08, the NBA gave priority to a number of areas of the ARCBS’s operations to ensure that the objectives and intent of the agreement were achieved. This included a focus on ARCBS strategic, capital and business planning; and the assessment of a number of business cases for consideration by governments.

Strategic and business planning framework

The establishment and operation of the Deed framework for providing input to ARCBS’s strategic and business planning processes is not yet fully developed, although it has progressed throughout the year. Successful implementation of this important element of the Deed will ensure that governments’ priorities are clearly articulated and appropriately reflected in ARCBS operations. Priorities that governments expect to be taken into account in this planning process were

During 2007–08, governments made a number of decisions to give substantial further funding to ARCBS to support the ARCBS principal site developments. Funding was also used to enhance blood safety measures such as leucodepletion, universal prerelease bacterial contamination testing and the introduction of effective donor recruitment and retention measures to meet the Council of Europe’s Guide to the Preparation, Use and Quality Assurance of Blood Components (12th edition) requirements.

ARCBS business studyDuring the year, the NBA continued to manage the ARCBS business study, which commenced in 2006–07. The expert advisory group (EAG), established to advise the NBA General Manager on the study, met six times from 1 July 2007 to 31 January 2008. Members of the EAG included:

Mr Michael Roche, Independent Chair��

Ms Kerry Flanagan, Australian Department ��of Health and Ageing

Mr Ken Barker, New South Wales ��Department of Health

Professor Brendon Kearney, Institute ��of Medical and Veterinary Science

Mr Robert Tickner, Australian Red ��Cross Society

Dr Robert Hetzel, Australian Red ��Cross Blood Service

Dr Philippa Hetzel, Australian Red ��Cross Blood Service

Mr Garry Richardson, National Blood ��Authority Board.

KPMG has provided business consultancy services to assist the study. The business study concluded that, based on the analysis and associated benchmarking, there were many


contributing knowledge and skills to the ��blood sector and providing advice to stakeholders through both horizon scanning and the ARCBS research and development program.

Horizon scanning

A core element of this strategic planning is the need for the NBA to strengthen its engagement with the ARCBS in relation to horizon scanning, research and development, and business and capital planning.

With representative membership on the ARCBS Research and Development Committee, the NBA is working with the ARCBS to restructure the research and development program and prioritise research projects. The interest of the

detailed to ARCBS in April 2008 and include:

ensuring states and territories only pay ��for the products and services they request and receive

engaging with governments in short and ��long-term planning activities

progressing and implementing the business ��study recommendations in line with the agreed response by AHMC at its July 2008 meeting

developing and implementing an approved ��health provider customer service model

implementing improved measures that ��support retention of existing donors

> 5 years2-5 years0-2 years

L

M

H

Timeframe

Deg

ree

of

Imp

act

on

AR

CB

S

Global Harmonisation of Regulation

Emerging Diseases

& New TestsDemographics

Radio Frequency

Identification at ARCBS

PrionFiltration

PathogenInactivation

RegionalConvergenceof Regulation

Changes in Clinical Practice

International Emergency

Readiness & DisasterPreparedness

Increased Influence

of EU Directives (including CoE)

OtherProducts andNew Services

Patient BloodManagement

Programs

Devolved Blood Budget

AutomationHep B NAT Testing

Universal Red Cells Red Cell

Alternatives

Figure 3.4 Examples of emerging theme mapping

Australian Red Cross Blood Service: The map above illustrates examples of potential emerging themes and developments relevant to the

Australian Red Cross Blood Service. The themes are mapped according to their perceived possible degree of impact over a seven year

horizon. The ARCBS is continually scanning for themes and clarifying drivers of change.


Table 3.5 Value of Australian Red Cross Blood Service annual capital plan ($ million), 2005–08

2005–06 2006–07 2007–08

27.02 29.58 32.96

In addition to the approved annual capital plans, governments have agreed to fund, as appropriate, the redevelopment of the principal manufacturing sites to maintain the flexibility and capacity of the ARCBS. This will allow the ARCBS to respond promptly to changing circumstances and needs, and to meet national obligations and standards for maintaining a high quality blood supply in Australia.

An update of the major principal sites is provided below.

Queensland

The ARCBS took possession of its new Queensland principal site, situated within the Queensland University of Technology development at Kelvin Grove on 4 February 2008. The $33.98 million cost of the Queensland facility has been borne by the ARCBS from existing capital funding provided by all Australian governments.

New South Wales and Australian Capital Territory

On 18 April 2008, the AHMC gave policy approval for additional funding of up to $115 million (at 2008 prices) to be provided to the ARCBS to meet building leases and fit-out for a new principal manufacturing site for New South Wales and the Australian Capital Territory.

NBA in these activities is to ensure decisions to fund particular research and development projects reflect governments priorities.

Under the terms of the Deed there is an expectation that the ARCBS will provide advice to the NBA on new and emerging trends that are likely to affect the provision of blood and blood-related products in Australia, including emerging technologies, public health activities and analysis of international trends in blood banking. In March 2008, representatives from the ARCBS provided an update on its horizon scanning processes and outlined the emergent themes facing the international blood and blood-products sector from their perspective.

The NBA will continue to work with ARCBS on ensuring timely consideration of these issues to ensure careful and balanced decision making for the blood sector.

Strategic capital investment plan

The ARCBS Strategic Capital Investment Plan demonstrates the intended capital expenditure required to sustain fixed assets including asset replacements such as vehicles, laboratory equipments and premises (eg refurbishments, relocations and new sites).

The Strategic Capital Investment Plan covers a five-year period. The first year is the annual capital plan, which outlines the expenditure required for the next financial year. The Strategic Capital Investment Plan is prepared by the ARCBS annually and submitted to the JBC as part of the approval process for the annual supply plan and budget.

Under the Deed, the annual capital funding provided to the ARCBS covers 10% of their main operating program. The value of approved annual capital plans from 2005–08 is shown in Table 3.5.


Business case assessments

The strategic and business planning processes, established in the Deed, provide for the conduct of feasibility studies and the development of business cases for initiatives that can be shown to meet government and ARCBS future priorities. In 2007–08, the ARCBS submitted the findings of three feasibility studies for the NBA’s consideration. These studies investigated the feasibility of implementing new donor relationship management, a computer-assisted donor questionnaire and improved blood inventory management systems within the ARCBS. The NBA has supported further investigative work on these initiatives with the exception of the Blood Inventory Management System, which requires additional supporting information.

The new 12,500 m2 manufacturing facility will replace the existing manufacturing facilities at 158 Clarence Street, Sydney and Dann Close, Canberra, which are no longer suitable due to the ARCBS’s growth. When completed in 2009–10, the new facility will accommodate nearly 600 people and contain all ARCBS activities in a purpose-built facility with a proposed minimum occupancy of 20 years.

Victoria and Tasmania

During 2007–08, the ARCBS commenced planning for the new Victorian and Tasmanian principal sites. The NBA expects to receive the final business case from the ARCBS in the first quarter of 2008–09, allowing for consideration by the Health Ministers during the second quarter of 2008–09.

NBA Board members at their visit to ARCBS Clarance St, NSW facilities


As of 27 September 2007, eight of the nine proposals put forward by the ARCBS had been approved by the JBC. Two further proposals had been approved out of session by the JBC and two other proposals had the consideration of their funding withheld pending the ARCBS announcing any other requests for funding. The total funding approved for these ten proposals was $4.6 million. To date, the NBA has received invoices totalling $1.57 million.

ARCBS performance Engagement between the two organisations is supported via regular communications and meetings, review of key performance indicators and third party reviews.

Communications and meetings

Regular reporting is provided through:

quarterly meetings between the NBA ��General Manager and the ARCBS CEO in relation to strategic issues and planning, progress against performance targets and other high-level issues

Chief Financial Officers meeting quarterly to ��discuss issues concerning ARCBS financial management and reporting, and capital planning

regular meetings between the NBA’s deed ��management team and representatives from the ARCBS regarding matters such as supply planning, intensive product management, contingency planning, principal sites and business cases.

Funding of $1.2 million was approved for release to ARCBS in 2007–08 to address the impact on the blood supply by new requirements on whom can donate blood under the Council of Europe guidelines. The Guide to the Preparation, Use and Quality Assurance of Blood Components (12th edition) is the regulatory standard to which the ARCBS is currently mandated as a minimum standard for fresh blood components by the Therapeutic Goods Administration (TGA). The changes implemented in 2007–08 relate to the management of donors with a history of acupuncture treatment and body piercing. Funding provided will assist in the effective implementation of new donor recruitment and retention measures.

The ARCBS business study required KPMG to review several business improvement initiatives the ARCBS proposed to implement. Work is continuing with the ARCBS to quantify the costs, savings and timeframes associated with implementing these efficiency measures.

Change program funding

As part of the negotiation for the Deed, a change program funding pool of $7 million was established for 2006–07 to 2008–09 to fund the following:

specific initiatives as part of the ARCBS ��national change program

specific transitional initiatives to be ��implemented under the Deed

other specific initiatives that will deliver cost ��savings or otherwise increase the efficiency of the production of goods or services under the deed (only if the purposes of the above two points have been substantially fulfilled by initiatives which have been funded).


Key performance indicators

The ARCBS is implementing a number of strategies in the area of donor management. Although faced with a number of challenges in the 2007-08 year (including the impact of cold and flu early in the season) resulting in a decreased number of donors and donations generally, key performance indicator data showed success in implementing these strategies.

The encouragement of regular whole blood donors to donate through apheresis collection of plasma and platelets had a positive impact, evidenced by a rise in the number of apheresis plasma donors and donations in the final quarter of the year.

Development of approaches for increasing donor retention rates (as opposed to increasing the donor panel with first time donors), and increasing the number of donations per donor in the period, are priorities for the ARCBS’s donor management program. Both of these areas showed positive results, with donation frequency higher than planned for whole blood and platelet apheresis donors, and the number of new donors (as a proportion of the total donor panel) decreasing steadily from 28.4% in the first quarter of 2007-08 to 27.1% at the end of the fourth quarter, indicating a slight improvement in the donor retention rate.

The total demand for red cells in Australia during 2007–08 reduced with a resulting decrease in red cell issuage per 1000 head of population to 36.3 units. (See Figure 3.5). At the same time, platelet issuage per 1000 head of population increased to 5.51 units from 5.45 from the previous year (see Figure 3.6).

These meetings are an opportunity for an exchange of information and review of ARCBS performance against the Deed. These meetings have seen the approval of a number of protocols and joint arrangements that support effective implementation of the Deed. Processes approved in 2007–08 include public affairs management, acknowledgment of government funding, third party reviews, development and amendments to the Annual Capital Plan, and management of change program funding pool approved projects.

It was also agreed during these discussions that the NBA prepare for ARCBS’ consideration a key document required under the Deed of Agreement, the ARCBS Handover Plan. This document sets out arrangements to apply between the ARCBS and the NBA and any third party in all situations of termination or expiry of the Deed, to ensure the effective management of the blood service (should this ever be necessary).


Figure 3.5 Red blood cells issued per 1000 head of population

35.8

36.0

36.2

36.4

36.6

36.8

37.0

37.2

37.4

2007–082006–072005–062004–052003–04

Financial year

Per

1000

po

pu

lati

on

Figure 3.6 Platelets issued per 1000 head of population

4.4

4.6

4.8

5.0

5.2

5.4

5.6

2007–082006–072005–062004–052003–04

Financial year

Per

1000

po

pu

lati

on


Agreement to supply projectThe agreement to supply project is driven by the reliance of the ARCBS and jurisdictions on the cooperation and good practices of approved health providers to help achieve the most efficient management and use of blood and blood-related products in pathology laboratories and hospitals. This includes integration of planning and demand management, comprehensive reporting on product usage, appropriate storage and inventory management.

The project proposes development of agreements between the ARCBS and approved health providers (more specifically pathology laboratories) and, where appropriate, between jurisdictions and their approved health providers. The agreements aim to articulate the JBC’s safety and quality expectations of recipients of government funded blood and blood-related products, including supporting appropriate use of products by clinicians in hospitals.

A discussion paper and project plan were developed and discussed with ARCBS and South Australia, the jurisdiction chosen to pilot the agreements. Further work has been identified as necessary before agreements can be effectively implemented. This work includes research to gain an understanding of barriers to appropriate management and use of blood products within hospitals and pathology laboratories.

Throughout the period, the number of process-related recalls fell below the KPI planning parameter except in quarter 4, during which the introduction of 100% bacterial contamination testing of platelets resulted in a significant increase in the number of recalls.

The NBA and ARCBS have been reviewing the KPIs under the Deed in an effort to improve on quantitative and qualitative reporting. This was done so that the NBA can gain further understanding of the variables contributing to ARCBS performance against the KPIs.

Third party reviews

Third party reviews are jointly commissioned by the NBA and ARCBS as parties to the procurement, evaluation and management of the contract for services. The reviews are designed to assist the two organisations in ensuring that the ARCBS operates in line with better practice in a cooperative and positive framework. The first of the third party review projects under the Deed was tendered for in late 2007–08 on ARCBS governance arrangements. Other third party reviews are to be conducted prior to the current Deed expiry date (June 2009), including the ARCBS’s procurement arrangements; risk management arrangements; and product ordering, delivery, receipt and invoicing.


endorsing of the actuarial and liability ��services reports by the management and advice support services provider, PricewaterhouseCoopers.

establishing and implementing of the claims ��management system and processes, and data reporting and analysis by the claims management and advice services provider (Marsh Pty Ltd).

implementing of comprehensive service ��level agreements and business plans with both service providers to the NMF.

ensuring full awareness of the key aspects ��of ARCBS risk management arrangements in relation to blood-borne diseases.

The NIRG’s attention is now focused on further consideration of the scope to harmonise statutory defence under state and territory legislation.

Product change proposalsUnder the National Blood Agreement, interested parties can make proposals for changes to products or services on the National Products and Supply List. Schedule 4 of the National Blood Agreement provides for evidence-based evaluation, information and advice to support decisions on these changes.

In 2007–08, the NBA commissioned an academic health economics department to design purpose-built guidelines to evaluate national blood supply change proposals. It is expected that the guidelines will be finalised and implemented in 2008–09. A number of proposals have been submitted to the NBA and are currently being reviewed.

National Managed FundThe National Managed Fund (NMF) was established by the Australian Health Ministers’ Advisory Council (AHMAC) to cover future liability claims made against the ARCBS in relation to the supply of blood and blood-related products within Australia. The NMF became effective from 1 July 2000, prior to the establishment of the NBA.

The National Indemnity Reference Group (NIRG) acts as a technical advisory subcommittee to the JBC on NMF-related matters and comprises Australian, state and territory government members. The NBA provides secretariat support to the NIRG, which met on 2 November 2007, and noted a number of significant achievements, including:

59Part Three: Our performance 3.4 Commercial contract management

plasma-derived products were delivered when and where required. Performance against the KPIs for the contract is shown in Table 3.6.

Table 3.6 Key performance indicators for the CSL Ltd Plasma Products Agreement

Key performance indicator

Achievement

Yield of Group 1 products

5.3 g IVIg per kg starting plasma

Loss of Group 2 plasma or Group 2 finished products

1.98%

Fulfilment of orders 99%

In order to finalise a new agreement with CSL Ltd by 31 December 2009, a stakeholder consultation process started that included meetings with senior health department officials.

A key tool to gather feedback on the contract and its products was the release of a discussion paper on the current arrangements. The discussion paper was posted on our website and also circulated on 19 May 2008 to 108 stakeholders including CSL Ltd; ARCBS; funding jurisdictions; other blood product commercial suppliers; and national, state and territory organisations representing clinicians, nurses, hospitals, pathology labs and patient groups. The paper sought opinions on product selection, product delivery, improvement in support and product demand. Feedback from this and further bilateral discussions will inform the development of the next contract with CSL Ltd.

3.4 Commercial contract management

The NBA is responsible for negotiating and managing contracts and standing offers with commercial suppliers of blood and blood-related products. These contracts relate to the supply of:

locally produced plasma-derived�� 1 products

imported plasma-derived and recombinant ��blood products2

diagnostic reagents.��

Locally produced plasma-derived products — CSL Ltd Plasma Products Agreement Since the 1940s, it has been possible to extract different proteins from plasma on a large scale using fractionation processes. In Australia, CSL Ltd fractionates plasma collected by the ARCBS to produce products to meet the needs of the Australian health sector. Plasma fractionation arrangements are governed by the Plasma Products Agreement (PPA) between the NBA and CSL Ltd which covers pricing, invoicing, supply planning and monitoring, ordering and delivery.

Funding to CSL LtdFunding to CSL Ltd for the PPA increased from $141.3 million in 2006–07 to $155.9 million in 2007–08. Growth in funding reflects the demand for plasma products.

The NBA and CSL Ltd maintained a highly effective contract throughout 2007–08 that ensured the optimum supply of Australian manufactured blood products. The NBA worked with CSL Ltd to ensure all domestic

1 Plasma is the liquid component of blood in which the blood cells are suspended. Plasma contains a large number of biologically

critical proteins, which have multiple physiological functions. The separation of blood and plasma from its constituent proteins for

medical use is called fractionation to produce plasma-derived products.

2 Recombinant products are produced by inserting a human gene into a cell line, which synthesises the required human protein (eg

factor VIII or factor IX). This product is then harvested from the supernatant for clinical use.


Figure 3.8 Issues of IVIg per 1000 head of population

2007–082006–072005–062004–052003–04

Year

Per

1000

Po

pu

lati

on

0

20

40

60

80

100

120

Total IVIg (gm)

Figure 3.7 Issues for IVIg products

2007–082006–072005–062004–052003–04

Financial year

gm

s

0

2 500 000

2 000 000

1 500 000

1 000 000

500 000

Imported IVIG gmsDomestic IVIg gms


The NBA has standing offer contracts for the supply of imported IVIg. With the ending of contracts in late 2007, the NBA commenced a procurement process for new contracts in mid-2007. The procurement process built on extensive consultation with all relevant stakeholders, which included stakeholder representation on the request for tender evaluation committee.

The outcome of the procurement was the finalisation of a new fixed price contract with Octapharma Australia Pty Ltd for the supply of Octagam for three years under the National Blood Supply arrangement. Octagam and a CSL Ltd imported product, Sandoglobulin Liquid, are also supplied under Jurisdictional Direct Order (JDO) arrangements negotiated by the NBA on behalf of state and territory health providers.

The NBA has expended approximately $34.3 million against this new standing offer in 2007–08, an increase of $13.6 million over 2006-07 expenditure. The new standing offer contracts satisfy all JBC-mandated parameters and offer governments’ exceptional value-for-money and a range of significant improvements, including:

a highly competitive price compared to ��current and forecast global prices

a choice of two imported products for JDO��

the transfer of the overhead and risk for ��inventory management from the NBA to the supplier

the maintenance of a three month NBS ��in-country reserve at the supplier’s cost

strong delivery requirements throughout ��Australia.

In May 2008, members of the JBC agreed to a new set of negotiation policy parameters that will guide the nature and scope of negotiations. The parameters address issues such as the nature of pricing, the potential for changed product management and distribution arrangements and term.

Imported plasma-derived and recombinant blood productsThe NBA has established and operates a range of contracts with overseas suppliers for the importation of selected plasma-derived and recombinant blood products to augment domestic supply and source products which cannot be manufactured in Australia, either because of an unavailability of technical capacity or uneconomic viability. The most significant of these are the contracts for imported IVIg and recombinant blood products.

Imported intravenous immunoglobulin standing offer

Intravenous immunoglobulin (IVIg) is a product derived from donor plasma and is used to treat a variety of acute and chronic haematological, neurological and immunological conditions (ie multiple myeloma and acquired immunodeficiency syndromes). It is also used extensively to treat autoimmune disorders and an increasing number of autoimmune-based neurological conditions.

Although IVIg is manufactured in Australia, limitations on the amount of plasma collected mean that local supply is unable to meet demand and some product must be imported (see Figure 3.7). Australia’s demand for IVIg continues to increase in line with global trends and now exceeds 100 grams per 1000 head of population as seen in Figure 3.8.


Figure 3.9 Market share of recombinant factor VIII issues

Figure 3.10 Issues of factor VIII products

RefactoRecombinateAdvate

Year

IU’s

0

140 000 000

120 000 000

100 000 000

80 000 000

60 000 000

20 000 000

40 000 000

2007–082006–07

2007–082006–072005–062004–052003–04

Year

IU’s

0

150 000 000

120 000 000

90 000 000

60 000 000

30 000 000

Recombinant FVIIIPlasma-derived FVIII


Figure 3.11 Issues of factor IX products

Figure 3.12 Issues of recombinant factor VIIa products

2007–082006–072005–062004–052003–04

Year

IU’s

0

25 000 000

20 000 000

15 000 000

10 000 000

5 000 000

Recombinant FIXPlasma-derived FIX

2007–082006–072005–062004–052003–04

Year

mg

s

0

5000

10 000

15 000

20 000

25 000

30 000

Novoseven


Figure 3.13 Issues of total factor VIII per 1000 head of population

Figure 3.14 Issues of total factor IX per 1000 head of population

2007–082006–072005–062004–052003–04

Year

Per

1000

Po

pu

lati

on

0

1000

2000

3000

4000

5000

6000

7000

8000

Total Factor VIII (IU)

2007–082006–072005–062004–052003–04

Year

Per

1000

Po

pu

lati

on

0

200

400

600

800

1000

1200

Total Factor IX (IU)


wider delivery options, including home ��delivery of products to approved recipients

significant savings in product costs over the ��life of the contracts compared to previous arrangements

the availability of three recombinant factor ��VIII products, including the latest generation of these products. Figure 3.9 depicts market share for these three products in 2006–07 and 2007–08.

The NBA expended approximately $139.9 million under these contracts in 2007–08 for the supply of imported blood products. The issues of the specific products are illustrated in Figures 3.10, 3.11 and 3.12. Figures 3.13 and 3.14 show growth in issues per 1000 head of population.

Following the establishment of new contractual supply and logistic arrangements in 2006–07, the focus in 2007–08 was to strengthen the three-way interaction between suppliers, stakeholders and the NBA to achieve best practice operation. A summary of the performance of suppliers against contractual KPI’s in 2007–08 is shown in Table 3.7.

Imported defined blood products

The development of recombinant biotechnologies in the 1990s has resulted in the availability of several blood products produced by recombinant genetic engineering that would otherwise be available only as plasma-derived products. Recombinant products are mainly used for the treatment of bleeding disorders, such as the different types of haemophilia. They offer potential advantages over plasma-derived products for some patient groups. As recombinant products are not manufactured in Australia, all such products are imported.

The NBA manages contracts for the supply of imported recombinant and some plasma-derived products with Baxter Healthcare Pty Ltd, Wyeth Australia Pty Ltd and Novo Nordisk Pharmaceuticals Pty Ltd. New contracts for the supply of these products commenced in July 2006 and include:

a commitment by all suppliers to ensure the ��supply of products to Australia, in times of national or international product shortage, as a preferred customer

an increased and consistent level of product ��support by suppliers

Table 3.7 Imported recombinant blood product contract key performance indicators

Key performance indicators

baxter Wyeth Novo Nordisk

Delivery performance Achieved 10 out of 12 months

Achieved Achieved

In-country reserve Achieved Achieved Achieved

Ordering Achieved Achieved Achieved

Record keeping Achieved Achieved Achieved

Reporting Achieved Achieved Achieved

Shelf-life of products to Approved Recipients

Achieved Achieved Achieved


identified areas for improvement over the contracts that existed at the time, further improving the service provided. The new contracts commenced on 1 November 2007 with four suppliers:

Australian Laboratory Services Pty Ltd��

CSL Ltd��

DiaMed Australia Pty Ltd��

Ortho-Clinical Diagnostics.��

Around 110 red cell diagnostic reagent products are available under the new contracts.

In 2003–04 and 2004–05 diagnostic reagents were supplied by CSL Ltd to the private and public pathology laboratories. This was funded by all Australian governments. In 2005–06 all governments amended the policy to only fund public hospitals and pathology laboratories and agreed to providing market competition. New agreements were entered into with four suppliers and the market share for each of these suppliers since 2005–06 is depicted in Figure 3.15.

Figure 3.15 Market share for diagnostic reagent supply

Diagnostic reagent productsLaboratories use diagnostic reagents for antenatal antibody screening and pretransfusion testing (blood grouping, antibody screening and cross-matching) to ensure there is compatibility between donor blood and the patient requiring a blood transfusion. The ARCBS uses diagnostic reagents for donor testing and when providing blood in difficult situations — for example, when patients present with multiple antibodies.

The NBA manages standing offer contracts for the supply of diagnostic reagents to public hospitals and laboratories to enable them to purchase a wide range of products that best suit their needs. By combining jurisdictional requirements, the NBA has achieved significant savings and a level of service that has high user acceptance and satisfaction. The NBA conducted an extensive procurement process for new contracts that concluded in the second half of 2007. The procurement process

Year

Perc

enta

ge

of

Mar

ket

0

20

40

60

80

100

120

CSL Diamed OCD ALS

2005–06 2006–07 2007–08

67Part Three: Our performance 3.5 Blood Counts

The Criteria identifies the conditions and circumstances as found by the evidence and recommended by experts for IVIg therapy. The Criteria has four introductory chapters covering governance arrangements, production of IVIg, supply and demand, and the methodology used to develop the Criteria. Chapters 5–8 of the publication provide clinical information for each indication considered in the review process. Indications are allocated to chapters according to therapeutic use as follows:

Chapter 5 — Established therapeutic use��

Chapter 6 — Emerging therapeutic use��

Chapter 7 — Exceptional therapeutic use��

Chapter 8 — Indications for which IVIg ��is not recommended.

After JBC endorsement of the Criteria and the associated funding policy statement in May 2007, the Criteria was progressively endorsed by the Clinical, Technical Ethical Principal Committee (CTEPC), the AHMAC and then Health Ministers at the AHMC in December 2007.

A communications strategy was devised in collaboration with the ARCBS and other key clinical stakeholders and implemented during February and March 2008. This was to ensure that all relevant stakeholders including hospitals, colleges, societies and key individuals were aware of, be provided with or could easily obtain a copy of the Criteria.

3 .5 Blood Counts

The Blood Counts Program aims to collaborate with jurisdictions, health professionals and other stakeholders to improve patient outcomes through the appropriate utilisation of blood and blood-related products.

The Blood Counts Program comprises a number of projects divided into streams that reflect the safety and quality intent of the National Blood Agreement. Specific projects have been selected after consideration by the NBA Clinical Advisory Council, the professional and community forum, JBC priorities and other key stakeholders.

Stream 1 — Development, implementation and promotion of best practice guidelines and standards Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia

The growth in demand for IVIg, (Figure 3.8) the relatively high cost and the potential for supply shortages, prompted action by Australian governments to ensure that IVIg use is reserved for those with the greatest need.

The Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia (the Criteria), published in March 2008, was developed under guidance of a JBC Working Party with funding and project management provided by the NBA. The review process, conducted between 2004 and 2006, involved two systematic reviews of the evidence, a review of use of the product in Australia and extensive consultation with the clinical community through the invitation of written submissions and two national workshops.


The NBA established a process endorsed by the JBC to respond to questions arising from the implementation of the Criteria. The purpose of the process is to provide nationally consistent interpretations of any diagnostic, qualifying, exclusion or review criteria published in Chapters 5, 6 or 7 of the Criteria where ambiguities have arisen or are considered likely to arise.

The process will be managed via email through an NBA secretariat. Issues will be submitted to a consultation group for comment. The comments will be collated by the secretariat and then submitted to a resolution group for decision. Where decisions have no impact on the supply plan, they will be promulgated through the consultation group. Where there is a potential to impact in a material way on supply, JBC endorsement is required prior to promulgation.

The Criteria was published in full as a book and also in an abbreviated form as a Quick Reference Guide. Both were published in hard copy and various electronic formats to create flexible access and modes of use. Copies can be requested or downloaded from the NBA website free of charge.

Between March and June 2008, 4594 full Criteria and 4658 Quick Reference Guides have been distributed including those downloaded from our website and those hardcopies ordered. The NBA will continue to monitor product use against these criteria and note any demand for changes to the Criteria arising from new clinical evidence of benefit for consideration as part of the review of the Criteria in 2010.

The top ten uses of IVIg in Australia as detailed in Figure 3.17 account for 74.6% of total use.


Figure 3.16 Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia: book and Quick Reference Guide

Figure 3.17 Top ten uses of intravenous immunoglobulin (IVIg)

0

2

4

6

8

10

12

14

16

18

20

2007–082006–072005–062004–05

Mul

tiple

Mye

lom

a

Gui

llain

-Bar

ré s

yndr

ome

Mya

sthe

nia

Gra

vis

Tran

spla

nt -

Allo

gene

ic s

tem

cel

l &

bon

e m

arro

w

Mul

tifoc

al M

otor

Neu

ropa

thy

with

Per

sist

ent

Con

duct

ion

bloc

k

Idio

path

ic t

hrom

bocy

tope

nic

pur

pura

- A

dult

IgG

sub

clas

s de

ficie

ncie

s

Com

mon

Var

iabl

e Im

mun

odef

icie

ncy

CLL

, H

ypog

amm

aglo

bulin

aem

ia (i

ncl.

uncl

assi

fied)

and

doc

umen

ted

recu

rren

t in

fect

ion

Chr

onic

Infla

mm

ator

y D

emye

linat

ing

Poly

neur

opat

hy

% o

f IV

Ig Is

sued

70

IVIg

We’d like to introduce you to Sam – Sam is a normal 11 year old boy who loves to be outside kicking a soccer ball with his Dad or fishing and catching crabs in the Queensland sunshine. But Sam is also one of more than 500 Australians who have common variable immune deficiency or CVID for short.

CVID is one of a group of diseases which affect the immune system and mean that the person is very susceptible to infections. Thankfully there is a treatment which can help with CVID and other immuno-deficiency diseases – intravenous immunoglobulin (IVIg). IVIg is a product that is derived from blood plasma. It is a solution of globulins containing antibodies normally present in adult human blood that provides immunity against disease. IVIg is prepared from human plasma pooled from many donors which has undergone stringent screening and testing to ensure it is safe. IVIg must be administered slowly through a needle in the vein, so once a month Sam spends 6 hours at the hospital getting his treatment. It’s not fun but Sam doesn’t mind too much as the nurses are really nice and he gets to play with the ‘purple egg’ (computer games).

No-one knows why or how people like Sam develop CVID. Tracy, Sam’s Mum, says that Sam was a sick toddler; ‘He got lots and lots of infections. He got pneumonia and meningitis. Where the other kids got the normal bugs and viruses, Sam would end up in hospital with all sorts of unusual symptoms’. Finally Tracy asked her doctor if there could be some underlying cause for all Sam’s infections and, after lots of tests, he was diagnosed with CVID and started on IVIg.

Whilst Tracy and Sam’s Dad Rob were relieved to finally have a treatment for Sam, they also found it somewhat daunting to be confronted with a diagnosis for their son of a condition that would probably require long term use of intravenous infusions in a hospital setting. Like most people, Tracy and Rob had never heard of CVID or immune deficiency diseases and they are very grateful for the education and support they have had from the Immune Deficiencies Foundation of Australia (IDFA).

71

IDFA is a non-profit organisation dedicated to supporting children, teenagers and adults with diagnosed primary immune deficiency (PID) disorders and has a strong focus on education for both the public and medical professionals.

For Sam and his family, having IVIg means that Sam is a normal healthy kid who gets on with school and loves to play soccer, cricket and go swimming. Without IVIg he is very susceptible to infections, is chronically tired and consequently, his behaviour and his schooling suffers. ‘Having IVIg has made a huge difference to Sam, without it he is so tired that he can’t concentrate at school, to the point where the teachers tell me he lies on the floor or puts his head on his desk to go to sleep. Because he is so tired, he is irritable and not tolerant of others’. With IVIg treatment Sam is a happy, energetic boy who can do all the things other boys his age do.


to guide health practitioners in effectively managing patients who require blood management intervention. The review will achieve this aim through:

making clinically-relevant ��recommendations based on available evidence and best practice

identifying opportunities to promulgate ��a multimodality approach to clinical patient blood management

expanding the scope to incorporate other ��important areas of health care that require a patient blood management approach (eg chronic and paediatric transfusions, obstetrics, and massive transfusion and critical bleeding situations)

changing the focus from product use ��to blood management in relevant clinical scenarios

ensuring sufficient engagement of the ��clinical community in the review process to ensure clinical relevance and to facilitate uptake.

A multitiered management framework has been established to coordinate the review. The framework consists of an overarching steering committee chaired by the NBA and with representation from the Australian and New Zealand Society of Blood Transfusion (ANZSBT), the NHMRC and the National Institute of Clinical Studies. An expert working group (EWG), chaired by the ANZSBT will oversee the clinical aspects of guideline procedures, including gaining input from a number of clinical reference groups. These will provide expertise on specific elements of the new Guidelines. Engagement of clinical users of blood products in the review process will assist with acceptance and implementation of the Guidelines.

Review of National Health and Medical Research Council and Australasian Society of Blood Transfusion guidelines

The Clinical Practice Guidelines on the Use of Blood Components (2001) were jointly developed by the National Health and Medical Research Council (NHMRC) and the then Australasian Society of Blood Transfusion, in cooperation with the Australian Government Department of Health and Ageing, the Royal Australasian College of Surgeons, the Australian and New Zealand College of Anaesthetists and other relevant groups. The Guidelines focused on the clinical decision to transfuse and the supporting quality processes. Their aim was to improve transfusion practice by:

reducing the proportion of blood ��components given without a specific indication

ensuring adequate documentation ��of all use of blood components

ensuring accountability processes are ��in place in all situations where blood components are used.

Significant new clinical and scientific data have emerged since the 2001 Guidelines were developed. Omitting important areas of practice (specifically obstetrics and paediatrics) was acknowledged at the time of publication of the Guidelines and a review of the Guidelines will provide an opportunity to include these areas. In addition, critical bleeding scenarios, haemodynamically unstable patients and chronic transfusion recipients (especially haematology-oncology patients) have been identified as other important gaps in coverage.

During the year, a review of the Guidelines commenced. The aim of the review is to develop evidence-based recommendations


A Guidelines Assessment Register (GAR) expert appointed by the NHMRC will provide advice and mentoring to the EWG. This will ensure the new Guidelines and the development process complies with NHMRC requirements.

It is anticipated that the systematic reviewer and guideline writer will be appointed soon after the initial meeting of the EWG, which is planned early in the 2008–09 financial year.

Consultation with the clinical community at several national meetings to date has strongly endorsed a shift from the current product focus of the existing Guidelines to one that focuses more on managing the patient’s particular condition. In addition, the place of alternative therapies in managing patients who would otherwise have required transfusion is also of significant interest to clinicians and will form part of the review process.


3 Australian Council on Healthcare Standards (ACHS): Standards and criteria for the Evaluation and Quality Improvement

Program Version 4 (EQuIP 4). 2007 Accessible online at http://www.achs.org.au

4 Available for viewing online at http://www.bloodsafelearning.org.au

Stream 3 — Improvements to systemsPublication of the Initial Australian Haemovigilance Report

In February 2008, the NBA published the Initial Australian Haemovigilance Report (see Figure 3.18) under the expert guidance and support of the National Haemovigilance Project Working Group and was subsequently endorsed by the JBC.

Figure 3.18 Initial Australian Haemovigilance Report

Stream 2 — Facilitation of education, information sharing and practice improvement initiativesSharing a South Australian e-learning initiative

In Australia, mandatory accreditation of hospitals now includes specific requirements related to transfusion. Hospital policies, practice and systems are assessed against defined criteria that include the collection and labelling of specimens, administration of the blood component, appropriate prescribing and decision making, quality improvement and education.3

In 2006 the South Australia Department of Health funded the development of an online education package (e-learning) for clinical staff involved with the transfusion chain, including medical officers, nurses and midwives, and courier or porter staff that transport blood products.4

This e-learning tool has been successfully used within South Australia and significant interest has been expressed by other states and territories (and internationally). This interest led the NBA to work with South Australia Health to propose the assessment and development of appropriate governance arrangements to enable this tool to become a sustainable national tool. The project to determine these arrangements will commence from 1 July 2008.


actively encouraging compliance with ��universal specimen-labelling standards and patient identification standards

that governments work collaboratively with ��clinical colleges and the ARCBS to scope, assess and, where appropriate, promote a stronger awareness and adoption of comprehensive patient blood management strategies to reduce risks associated with exposure to unnecessary transfusions.

The NBA is committed to facilitating the achievement of these recommendations in the coming years.

Stream 4 — Research, data and benchmarking to improve appropriate use of productsNational Red Cell Utilisation Workshop

On 18 April 2008, the NBA conducted a National Red Cell Utilisation Workshop. The aim of the workshop was to facilitate sharing of existing data on current red cell use, to improve understanding of current red cell use and data collection methodology (including limitations).

Representatives from five jurisdictions and the ARCBS presented the methods and results of the investigations conducted into red cell use.

Table 3.8 outlines the five broad approaches used to look at red cell use in a range of jurisdictions.

The Report outlines jurisdictional progress towards achieving improvements in transfusion safety through increased systems of vigilance and improved transfusion safety practices.

The Report also provides a synopsis of available jurisdictional and national data. Although there were variations in reporting periods and definitions, the broad types of transfusion risks in Australia were found to be similar to those of other countries that report transfusion adverse events, such as the United Kingdom, New Zealand, Sweden and Canada. A key observation relating to the more than 600 transfusion-related incidents reported over the past 3–5 years in Australia was that approximately 65% of reports involved procedural errors. These included patient misidentification, labelling errors, wrong blood in tube, prescription and dispensing errors, incorrect blood component transfused and ABO incompatibilities.

The Report makes the following recommendations:

that governments support the ��establishment of an enduring national haemovigilance program

that states and territories continue to align ��their reporting systems with the agreed dataset to create a comprehensive national minimum dataset.

In recognition of the prevalence of procedural errors, the Report recommended that state and territory governments consider:

facilitating standardised training, ��development and proficiency testing

performing procedural audits of ��near-patient activities


Table 3.8 Types of red cell usage studies being undertaken within the states and territories

Model type Methodology

Red cell survey A random sample survey of red cell units considered the urgency of the transfusion, transfusion demographics and the clinical indication for usage.

Red cell audit Undertook a paper-based audit process that assessed red cell utilisation against the 2001 Guidelines, for randomly selected patients.

Data linkage A number of jurisdictions have undertaken data linkage processes that used information from various sources such as hospital records, pathology information and ARCBS data, allowing individual patient requirements to be cross-matched. These types of processes created rich data source that allows a variety of analysis to be undertaken.

Databases Data was collected based on the guidelines and clinical information provided at the time of request for red cells. This database provides the ability to then report the information collected.

Market research Interviews were conducted with 21 surgeons and registrars in various specialities (cardiac, orthopaedic, gastroenterology and anaesthetics) and split between rural and metropolitan areas, based on their perceptions and decision making with respect to blood transfusion.

Each of these models provides a varying degree of information about red cell use within Australia.

Red cells were found to be prescribed in a highly variable way across and within individual institutions, states and jurisdictions. Some institutions had much less variation in red cell prescribing than others. On investigation, these sites were found to have well-developed systems to inform and control blood prescribing practices. Highest volume use was found in cardiovascular, gastroenterology and haematological (malignant and nonmalignant).

Some key highlights from the data presented include:

cardiovascular, haematology and digestive ��specialities were consistently the highest users of products

a significant proportion of transfusions ��are inappropriate against guidelines

limited correlation between comorbidities ��and transfusion

significant use of product to treat ��pre-operative anaemic patients

high variability of red blood cell use ��in elective surgery

impact of the ageing population and ��demographics on the quantity of products used.


Doctors generally reported that they made ��transfusion decisions individually rather than in consultation with others, although consultation on more complicated cases was not uncommon: registrars reported that they conferred with their consultants if they felt a case was borderline, and some practitioners reported that they consulted with haematologists and anaesthetists, who are seen as the experts in blood component therapy.

When asked how they would feel if ��someone questioned their decision to prescribe blood, doctors indicated that they were open to questioning by colleagues regarding ‘legitimate’ concerns. It was clear, however, that there was some resistance to having their clinical judgment queried, although they may be happier to be questioned by more senior or specialised staff.

Generally, doctors reported that they ��believed patients were comfortable with the process of red blood cell transfusion (with the obvious exception of Jehovah’s Witnesses). The doctors were asked about the necessity of the transfusion and blood-borne infections, such as HIV and hepatitis. Practitioners said that they were generally proactive in supplying information to patients. Importantly, doctors did say that they would be open to influence if patients expressed genuine concerns about transfusion.

In light of the above findings, in May 2008 the New South Wales Clinical Excellence Commission and the NBA agreed to co-fund further research to develop communications strategies and key messages to enhance appropriate prescribing of blood for haemodynamically stable patients.

A round table discussion was held after the presentations that led the group to propose a number of recommendations for the NBA’s consideration as a part of its broader work program. The NBA has committed to developing a multifaceted strategy, in collaboration with key participants at this meeting, to underpin improvements to red cell prescribing practices.

Market research into red cell prescribing practices for haemodynamically stable patients

Although red blood cell transfusions are an important part of the treatment of some haemodynamically stable patients, there is evidence to suggest that a number of transfusions in such settings are inappropriate. Some patients are being exposed unnecessarily to the risks associated with transfusion. The NBA and the Clinical Excellence Commission in New South Wales jointly funded market research to inform the development of state and national communications strategies. These will aim to enhance prescriber compliance with the NHMRC and ASBT guidelines on the use of blood components and to reduce the number of unnecessary or inappropriate prescriptions for red blood cell transfusions.

In summary, the research reached six conclusions:

Haemoglobin levels were the key indicator ��used when prescribing blood, especially when this indicator reached 8 g/dL.

Doctors typically prescribe a minimum of ��two units; few doctors were able to offer evidence-based support for this aspect of blood prescription.

Doctors felt confident in prescribing blood, ��or as confident as any other aspect of their practice — blood prescription was not seen to be exceptional to other ‘normal’ aspects of clinical practice.


Blood Measures aims to achieve widespread use by those involved in the collection of blood use data by:

a set of standard parameters that are ��indicators of appropriate blood and blood-related product use across a range of clinical scenarios

consistent data management techniques ��that will enable the data collected on the use of blood and blood-related products to be used to promote best practice and provide data for registry and research purposes.

Chaired by Professor James Isbister (consultant in haematology and transfusion medicine), and with participants coming from a wide range of clinical backgrounds, the National Blood Measures Working Group is developing a national guide outlining suggested standard measures and definitions which can be used in any study of blood and blood-related products.

Blood Measures — a collaborative project between the National Blood Authority and the Australian Red Cross Blood Service

Despite a number of clinical practice guidelines regarding blood transfusion, there is still wide variation in use, both internationally and domestically, within countries, regions and even within hospitals. Learning about the variation in use is vital to understanding clinical demand and therefore ensuring supply. Within Australia, there have been a number of separate initiatives to investigate product use; however, each of these projects has developed independently with different motivations, aims, methodologies and outcomes. Comparison between outcomes of these projects is difficult due to the differences in data types, definitions and methodologies.

79Part Three: Our performance 3.6 Supply and data management

nationally (see Figures 3.2 and 3.3). In April 2008, the AHMC approved bringing forward implementation of universal leucodepletion of red blood cells and platelets to 2008–09. This was achieved through the NBA’s coordination across jurisdictions and with the ARCBS on the cost and timing implications.

Universal bacterial contamination testing of platelets

Platelet components are stored at room temperature for up to five days and, as such, provide a natural growth medium for bacteria that may have been introduced through skin puncture or an underlying bacterial load from the donor. When the platelets are transfused into a patient, who may be immunocompromised, there is potential for septic complications. In April 2008, the ARCBS implemented universal bacterial contamination testing of platelets in accordance with the 2006–07 AHMC in-principle support for its introduction.

National Supply Plan and BudgetThe NBA plays the key role in coordinating an annual National Product List and National Supply Plan and Budget for approval by Health Ministers. As part of its role in managing the supply of blood and blood-related products, the NBA is responsible for:

collecting data on products issued and ��reporting to jurisdictions against the approved supply plan

making improvements to the national ��supply planning process

monitoring the balance between supply ��and demand throughout the year

intensively managing products in ��short supply.

The National Supply Plan and Budget for 2007–08 was $680.7 million as approved by the AHMC in March 2008 for the supply of blood and blood-related products. The actual demand for 2007–08 and funding by all jurisdictions was $703.0 million. This represents a $22.3 million increase, or 3.2%.

Move to universal leucodepletion of red cells

Leucodepletion is the removal of white blood cells (leucocytes) from red blood cells and platelets by filtration. This is done to decrease the likelihood of a patient experiencing an adverse reaction or event. In 2006–07, the AHMC gave in-principle support for the introduction of universal leucodepletion of red blood cells and platelets by 2010–11. In 2007–08, the ARCBS leucodepleted 27.6% of red blood cells and 87.1% of platelets

3.6 Supply and data management


Table 3.9 Issues of blood products 2006–07 and 2007–08

Non Fresh blood Products 2006–07 2007–08 Variance

Total Albumin gms 5 310 878 5 829 292 9.8%

Total IVIg gms 1 898 527 2 152 678 13.4%

Total Factor VIII IU 116 012 250 131 984 750 13.8%

Total Factor IX IU 18 422 500 21 322 500 15.7%

Total Rh (D) IU 68 561 175 68 777 800 0.3%

Hepatitis B IU 2 252 200 2 109 300 –6.3%

Normal Immunoglobulin mls 13 920 16 280 17.0%

Tetanus IU 1 498 250 1 357 250 –9.4%

CMV Immunoglobulin vials 2 370 2 421 2.2%

Zoster 1g 2ml vials 2 788 2 131 –23.6%

Prothrombinex-VF vials 16 782 21 202 26.3%

Thrombotrol-VF vials 469 993 111.7%

Ceprotin IU 10 000 20 000 100.0%

Recombinant Factor VIIa mgs 26 119 16,570 –36.6%

FEIBA inhibitor Treatment IU 2 202 500 4 121 500 87.1%

Factor XI IU 75 325 39 380 –47.7%

Factor XIII Concentrate IU 110 000 149 750 36.1%

Fresh blood Products 2006–07 2007–08 Variance

Total Whole Blood Products Unit 1 145 801 –30.0%

Total Red Blood Cells Unit 777 972 768 919 –1.2%

Total Platelets (Adult Doses) Adult Doses 113 579 116 665 2.7%

Total Clinical FFP (Adult Doses) Adult Doses 145 874 144 987 11.0%

Total Cryoprecipitate Unit 49 333 51 957 5.3%

Total Cryo-depleted Unit 12 321 14 487 17.6%

Other Products Unit 8 705 6 371 –26.8%

Plasma for fractionation Kgs 329 331 352 781 7.1%


There are a number of approaches that could be taken in moving forward with sector data management. In the past, it has been common to attempt to build and impose large, national, integrated systems into an existing environment. Historically, this approach has been very costly and has had limited success.

A second philosophy has been the incremental approach, where system development is undertaken on an ‘as needed’ or ‘incremental’ basis. This involves understanding the existing environment, identifying gaps within it and developing systems to fill those gaps. To date, this has largely been the approach within the blood sector.

An alternate approach is to gain consensus on the data sets, requirements and standards needed to allow the collection of that standardised data through a diversity of systems. The ‘standard requirements’ approach proposes developing standards and a framework for achieving the information needed without necessarily having to build an information technology (IT) system. With this approach, jurisdictions and other stakeholders are able to collect the required data in ways that suit their business processes, yet the standards placed on the dataset means that national compilation of the data is possible. The SIMDS proposes a ‘standard requirements’ approach, as well as the use of incremental nationally sanctioned systems where needed.

JBC has agreed to the NBA developing a SIMDS to help guide a national approach to blood sector data. This will include using the strategy to set priorities applying the criterion developed within it to determine when national systems should be developed and when data should be gathered from existing systems.

Sector information management and data strategyThere is a substantial amount of data available within the blood sector; however, there is no coherent information systems architecture integrating and serving the blood sector as a whole.

The National Blood Agreement

Under the National Blood Agreement, there are two primary policy objectives for the Australian blood sector.

To provide an adequate, safe, secure and affordable supply of blood products, blood related products and blood related services in Australia

To promote safe, high quality management and use of blood products, blood related products and blood related services in Australia.

To meet these obligations, given the wide range of information systems within the sector, the NBA has developed a sector information management and data strategy (SIMDS) this year. The primary objectives of the SIMDS are to provide a framework which supports the development of information management systems and the generation of data on blood and blood-related products that contribute, in a cost effective way, to:

improved clinical outcomes��

improved cost-effectiveness and use ��of products

a secure supply.��


Overseas supply of blood products

Under the National Blood Agreement, blood and blood-related products manufactured in Australia may be supplied for the personal use of Australian citizens travelling overseas and for humanitarian aid and disaster relief.

A policy for the provision of product overseas was endorsed by the AHMC in 2006–07 and the provision of these products is managed by the NBA, as set out in the National Blood Agreement.

In addition to those travelling or studying overseas, the NBA also facilitates the supply of blood and blood-related products for those Australians serving overseas and in international waters, such as the Australian Defence Force (ADF), Australian Customs Service (ACS) and the Australian Antarctic Division (AAD).

Australian Bleeding Disorders Registry

In collaboration with a range of sector stakeholders, the NBA made significant progress on a project to redevelop the ABDR. The primary purpose of the redeveloped ABDR is to collect data that will contribute to improvements in the treatment and care of people suffering from bleeding disorders. This will occur on a range of fronts, delivering new capabilities for everyone involved in treating bleeding disorders. The ABDR will facilitate the collection of information which will be used to:

build an accurate demographic profile ��of bleeding disorders in Australia

keep clinical information such as treatment, ��bleed frequency, joint health, pathology, radiology, genetic mutation and others to provide information for assessment of treatment outcomes to improve care

understand product use by diagnosis and ��enable governments to undertake supply planning and demand forecasting to secure an ongoing supply of clotting factor product.

83

The NBA is particularly proud of its part in the redevelopment of the ABDR throughout 2007–08. The project, initiated in late 2006 (but starting in earnest in early 2007), has made marked progress. The redeveloped ABDR is expected to go live across all haemophilia treatment centres at the time this annual report is likely to be published in November 2008.

From its inception, the project has been an unprecedented example of collaborative effort and exercise in consultation. The project is overseen by a steering committee with clinical, patient and government representation. The key clinical organisation, the Australian Haemophilia Centres Directors’ Organisation (AHCDO), and haemophilia patient organisation, Haemophilia Foundation Australia (HFA) are represented. In fact, the chair of the Steering Committee is one of two AHCDO representatives: Dr John Rowell from the Royal Brisbane and Women’s Hospital in Queensland. To develop the statement of user requirements, Project Officer Ms Elizabeth Arnold conducted over 80 interviews across the sector encompassing government, clinicians, physiotherapists, social workers, nurses, data managers, transfusion medicine scientists, suppliers and 14 of the 16 haemophilia treatment centres across Australia. This developed a precise, comprehensive list of needs.

The level of consultation did not stop there. Representatives from key stakeholder organisations were involved in the development of the system, including representatives from AHCDO, the Australian Haemophilia Nurses Group, ARCBS and jurisdictions. Genix Ventures were the successful contractor and commenced system development in January 2008, conducting a workshop with all stakeholders. A reference group consisting of clinicians, nurses, data managers, physiotherapists, social workers, HFA and the NBA from across Australia have, and are, reviewing each reiteration to ensure the finished system meets the sector’s requirements in detail.

Due to the efforts of everyone in the bleeding disorders community, the ABDR is an example of collaboration at its best. The project reiterates the theme of World Haemophilia Day 2008, Count Me In. This event focuses on identifying and registering people with bleeding disorders and aims to deliver a world class system that meets the needs of all involved. It is well on its way to achieve this.

Australian Bleeding Disorders Registry (ABDR)

Overseas supply of blood products

Since its inception, the NBA has been involved in the supply of blood products and blood-related products to both Australian residents overseas and to non-Australian residents in the case of emergency or for humanitarian aid and disaster relief.

The supply of haemophilia products to Australian residents that are temporarily overseas allows those patients to conduct their lives to the fullest extent, safe in the knowledge that they have access to the same support that is extended to them when they are living at home. The NBA also facilitates the supply of blood products and blood-related products for those Australians serving overseas and in international waters, such as the Australian Defence Force (ADF), Australian Customs Service (ACS) and the Australian Antarctic Division (AAD).

Australia is widely recognised as a leader in the provision of humanitarian aid and disaster relief in the Pacific region, providing support services, financial aid and much needed medical and other supplies. In recent years, the NBA has supported these efforts through the supply of tetanus immunoglobulin to the Solomon Islands and Indonesia in response to the tsunami and devastating earthquake, respectively. As well as these coordinated efforts, the NBA, with the assistance of the Australian Red Cross Blood Service (ARCBS),

has also approved the supply of products to our neighbouring countries to provide lifesaving or life-preserving aid on a much smaller scale. Recent examples include the provision of Rh(D) immunoglobulin to a patient who was 34 weeks pregnant in Papua New Guinea, Hepatitis B immunoglobulin to East Timor and Rh(D) immunoglobulin to Indonesia.

Following a minor change to the National Blood Agreement to allow supply of product overseas under the National Blood Arrangements, Jurisdictional Blood Committee (JBC) has now agreed to the funding mechanisms that will allow for greater equality between the states and territories when it comes to funding the various situations of supply overseas. Together with a recently endorsed internal NBA process, and a joint arrangement on overseas supply with ARCBS, the NBA will continue to make available the same products and services for Australian residents travelling or serving overseas, and in response to requests for humanitarian aid and disaster relief.


Arrangements (Plasma Fractionation Review5; PFR). The PFR was submitted to the Australian Government on 13 December 2006 and recommended, among potential areas for improvement, the optimisation of the distribution of blood products, particularly between the ARCBS and CSL Ltd Bioplasma. In response, governments endorsed a work strategy for the NBA to undertake the recommended Review of Distribution Arrangements for Blood Products in 2008.

Review of distribution arrangements for blood products

In June 2008, the NBA advertised a request for tender for the Review of Distribution Arrangements for Blood Products (see Table 3.10). The NBA anticipates that the successful respondent will be appointed in September 2008 and tasked to deliver their recommendations in 2009.

The Review of Distribution Arrangements for Blood Products is an outcome from the Australian Government’s consideration of the Review of Australia’s Plasma Fractionation

Table 3.10 Terms of Reference for the Review of Distribution Arrangements for Blood Products

The 2006 Review of Australia’s PFA suggested there may be scope to improve the efficiency and effectiveness of current blood product distribution arrangements, particularly between the ARCBS and CSL Ltd Bioplasma. It recommended that the NBA should initiate a review. This recommendation was endorsed by the AHMC in 2007.

The aim of the Review is to identify improvements to the distribution arrangements for blood products by examining the current system, comparing it with best practice and identifying areas of improvement.

The Review should describe the current distribution system, and in doing so:

consider the links between the approval process and distribution��

assess the costs, efficiency and effectiveness of the current system��

prepare a formal analysis of the supply chain requirements of different users ��

assess risks in the current system and potential mitigation strategies��

quantify improvements that could be made in better achieving the objectives of the ��National Blood Agreement.

In undertaking the work of the Review and providing recommendations, the Review should also consider the potential for the number of stocking points and stock levels, inventory target levels and the adoption of multiple distribution channels to either positively or negatively contribute towards improving the current system.

The Review should identify an implementation strategy for any recommended improvements.

5 http://www.health.gov.au/internet/main/publishing.nsf/Content/plasma-fractionation-review-overview.htm


jurisdictional representatives and the ARCBS in order to provide assistance in the implementation of the policy. Projects have now been developed to assist in the implementation, and during 2008–09 these will be trialled to inform the wider sector implementation plan.

Progression of barcoding policy

In 2006–07, the JBC agreed to the national implementation of a barcode standard of ISBT 128 for all fresh blood products and GS1 128 (formerly EAN 128) for all plasma, recombinant and diagnostic products by 1 July 2011. Since that time the NBA has been consulting with

87Part Three: Our performance 3.7 Budget and financial management

The integrated data management system has been designed to facilitate further development of the National Supply Plan and Budget process and move towards multiyear budgeting and demand and supply planning.

Financial statementsThe NBA aspires to produce unqualified financial statements each year with categories that are rated no higher than B. This year, the NBA has unqualified statements and no Category B findings.

3.7 Budget and financial management

The NBA is an Australian Government agency that must comply with the Financial Management and Accountability Act 1997. During the year, the NBA met all of the Department of Finance and Deregulation’s monthly reporting deadlines and implemented policies and procedures to further improve budgeting processes as specified by the department. These included:

development and refinement of finance ��procedures in line with Australian Government requirements and best practice

review, revision and application of Chief ��Executive’s Instructions and the instrument of delegation

refinement of internal travel policies.��

Integrated data management systemIn 2007–08, the NBA implemented an integrated data management system. The system provides the NBA with an integrated capability for facilitating the supply management of blood and blood-related products across core functional areas including:

budgeting and forecasting supply and ��demand of blood and blood-related products

tracking inventory��

contracting administration��

reporting obligations.��


An appropriate communication strategy for the NBSCP was developed in consultation with the jurisdictions that aim to:

engage the clinical community, as they ��will play a key role managing the limited availability of product through determining treatment requirements of patients, through the implementation of governance arrangements that support appropriate blood management and provide a framework to manage product use during a crisis

ensure appropriate linkages with ��jurisdictional emergency management arrangements.

Further work will be required during 2008–09 to communicate and implement the NBSCP, as well as to ensure that appropriate operational processes are put in place so that timely and accurate information to stakeholders is provided in the event the plan is activated. The NBA will also consider and commence work on additional response annexes, such as a transfusion transmitted infection annex.

3.8 Sector risk management

The NBA has approached the management of sector risk through several strategies, including the National Blood Supply Contingency Plan (NBSCP), sector risk coordination and appropriate stocking and the management of the national reserve.

National Blood Supply Contingency PlanIn August 2007, the JBC endorsed a draft of the NBSCP. In line with business continuity or emergency management approaches, this plan was tested through a desktop exercise in September 2007.

This was the first national exercise to test the governments’ preparation in the event of a blood supply crisis. It confirmed that the framework for decision making, broad roles and responsibilities of the key players was adequate to manage the activities required as part of the exercise. Despite this, it highlighted a need to make some operational improvements in how the NBSCP was implemented.

On 18 April 2008, the NBSCP was endorsed by Health Ministers, after consideration and support by a range of relevant committees, including AHMAC, Australian Health Protection Committee (AHPC) and the CTEPC.

National Blood Supply Contingency Plan

The National Blood Supply Contingency Plan (NBSCP) outlines the planning, preparation, governance and decision making, response and recovery frameworks for a supply shortage or increased product requirement due to a demand surge.

The Plan was endorsed by the Health Ministers on 18 April 2008 and incorporates the careful networking and collaboration with sector wide stakeholders. This consultation process has ensured that the NBSCP is appropriately integrated and linked with the national health emergency arrangements. It details three levels of accountability

Nationally, the NBA is responsible for the overall management of the plan, but is primarily the conduit between governments’ decisions and suppliers. The Australian Health Protection Committee (AHPC) becomes involved in decision-making when actions required impact on the capacity of the health sector to maintain normal practice or where blood sector involvement is required during a broader health sector issue. The Therapeutic Goods Administration (TGA) is responsible for elements that affect or are related to the regulation of blood and blood-related products.

Operationally, suppliers of products are responsible for managing inventories and reserves, reporting, donor recruitment and management, collection, manufacture, equitable distribution and interface with the

clinical community, as well as implementation of government decisions.

Clinically, governments cannot predetermine the treatment of patients requiring blood and blood-related products. Hospitals, clinicians and pathology providers will have a vital role in assessing the patient requirements in the context of individual needs and the capacity of their facilities to provide treatment. The Plan encourages institutions to establish governance arrangements and emergency blood management plans with strong triage and vetting processes to support clinical decision making that is built on effective integration between hospitals and pathology services.

To supplement the NBSCP, a range of specific annexes have been prepared to outline the triggers and roles and responsibilities of the major stakeholders for a specific product group or event. At this stage, two response annexes have been developed: red blood cells and plasma-derived and recombinant products.


National reserveThe NBA contracts with CSL Ltd to manage a national reserve of the plasma products it produces, as well as supplying certain imported plasma-derived products. The national reserve is held at locations around Australia for contingent use. In 2007–08, the contractual arrangements for the management of the national reserve were renegotiated for a further two years.

Sector risk coordinationDuring 2007–08 the NBA has continued to work with the Office of Health Protection, a unit of the Department of Health and Ageing, to ensure continual linkages with broader health sector emergency management arrangements.

Key elements of this work included:

continuing the NBA’s role on the health ��infrastructure assurance advisory group

working on the process and draft of the ��Blood Supply Annex to the Australian Health Management Plan for Pandemic Influenza (AHMPPI)

observing and participating in several ��national exercises that were designed to assess at the broader health sector’s preparedness in emergency situations.

91Part Three: Our performance 3.9 Corporate performance

objectives of the 2006–09 Corporate Plan. The NBA Board endorsed the 2008–09 Operational Plan in April 2008.

Stakeholder strategyTo ensure effective engagement with stakeholders and the clinical community, the NBA started work in 2007–08 to formalise our approach to stakeholder engagement. The strategy acknowledges that we have a range of objectives for engaging with stakeholders, including:

developing understanding and support for ��the strategic intent of the NBA

managing risks associated with changes ��and directions requested by governments

ensuring up-to-date and credible policy ��advice to governments

building credibility for the NBA in addressing ��the things that really matter for the sector

providing clear and demonstrable public ��accountability for the directions and priorities pursued

informing decisions and ensuring more ��effective program delivery.

Emerging from the effective engagement with key sector partners to date, this strategy provides employees with an overview of the NBA’s existing relations and provides a framework for engaging with new stakeholders as they are identified. The range of stakeholders that the NBA engages with encompasses both the blood sector specific and broader health areas. In particular the NBA seeks to align blood reform with the broader health reforms, through effective relationships

The NBA successfully implemented a number of internal improvement projects designed to improve our stakeholder engagement and overall capabilities, risk management and effective use of ICT. We regularly monitor our performance against internal goals set in our 2007–08 Operational Plan. This includes our performance related to JBC and Board support and broader government compliance and policy expectations in the areas of customer service and ecologically sustainable development. Performance outcomes in these areas are detailed in this section.

2007–08 Operational Plan performance Of the 64 elements in the 2007–08 Operational Plan, 54 were completed on time, and a further eight have, or will be, completed with a minor time delay.

In 2007–08, the NBA further refined its monthly performance reporting to include an overarching scorecard, which is considered by executive management monthly and quarterly and by the Board at each meeting.

2008–09 Operational Plan In January 2008, the NBA commenced its operational planning for 2008–09. Prior to the annual executive planning workshop, held in April 2008, each of the teams within the NBA developed business plans to detail their work priorities and key projects for 2008–09. At the executive planning workshop, these work plans were considered and strategies for enhancing stakeholder engagement discussed. The priorities articulated in the 2008–09 Operational Plan align with the overarching

3.9 Corporate performance


instigated an international network to share ��information on plasma supply and planning, which has been warmly welcomed and will meet for the first time in early 2009

taken a more proactive approach to ��engaging with stock analysts to gain a fuller understanding of international product trends and pricing

formalised programs under which blood ��product suppliers are contractually obliged to provide the NBA with knowledge updates

developed and implemented a core research ��project to establish key questions and knowledge areas that the NBA needs answers to or requires information about (ie new products in company pipelines).

Activities designed to further build our capabilities are also undertaken in the areas of:

recruiting and retaining staff to apply ��efficient and known processes and knowledge

maximising the use of business systems ��and processes

building effective engagement with ��stakeholders

ensuring a capacity to constantly ��improve and measure performance.

with agencies such as the Australian Commission on Safety and Quality in Health Care. The strategy is designed to ensure careful consideration and consistent discipline in our assessment and relationship with each and every stakeholder. Importantly, the strategy acknowledges that the contribution of each stakeholder may differ depending on the activity underway. The strategy provides an appropriate set of tools that staff can use to document and assess these requirements.

The stakeholder engagement plan will be reviewed annually as part of our operational planning and risk assessment processes and will form part of NBA’s KBPs.

Capability strategyDuring 2008–09, the NBA took time to consolidate a detailed consideration of the capabilities they require to deliver on their responsibilities at a consistently high standard. Following advice and input from the Board, a detailed staff survey assessed views on those activities that would achieve the maximum impact on our capabilities. A number of activities were designed and are now in various stages of implementation to build capabilities in each of these areas.

For example, in the area of maximising the knowledge available to the NBA, we have:

implemented a project to assess options ��on how best to search our electronic documents, including assessment of a system search tool and a scoping study on the implementation of an electronic document and records management system (EDRMS)


A key element of our risk management is our business continuity planning and in November 2007, the NBA received a Highly Commended award in the 2007 Comcover Awards for Excellence in Risk Management for the implementation of the NBA’s Business Continuity Plan.

Jurisdictional Blood Committee and Board secretariat Under the terms of the National Blood Authority Act 2003, the NBA is required to provide secretariat services for the JBC and the NBA Board. During 2007–08, the JBC held four face-to-face meetings and one teleconference while the NBA Board met on four occasions. Secretariat support included preparing papers, coordinating meetings, monitoring and updating progress against agreed work plans and providing liaison between the NBA and members of these committees.

Key performance indicators set by the NBA relate to the quality and timeliness of support provided to the JBC. Table 3.11 shows progress in achieving these indicators.

Risk managementThe National Blood Authority has a strong commitment to risk management, demonstrated through the inclusion of risk management concepts and activities in our daily operations. Over the past year this has included:

revision of KBP 7 – The NBA’s Risk ��Management Policy and Framework and Risk Management Process

biannual review of NBA’s Strategic Risk ��Management plan

development of risk management plans ��for significant projects and

participation in the annual Comcover Risk ��Management Benchmarking Program.

Participation in the 2008 Comcover Risk Management Benchmarking Survey resulted in the NBA gaining the same overall benchmarking score as in 2007, with an overall score of 6.7 out of a possible 10. This score puts the NBA at the level of ‘Comprehensive’ indicating a high level of competency in implementing an enterprise wide risk management framework.

Table 3.11 NBA Performance indicators for JBC support, 2007–08

Meeting % of papers prepared by the NbA provided to JbC (seven

days prior to the meeting)

% of recommendations in NbA papers agreed by the JbC

30 August 2007 100 98

29 November 2007 95 93

21 and 22 February 2008 95 89

17 April 2008 100 100

16 May 2008 100 97

94

The NBA has a strong culture of risk management incorporated into the everyday activities of the organisation. Reflecting this, the NBA has developed a business continuity plan (BCP) to ensure critical services can be delivered in the face of a natural disaster.

Just one week before the NBA was scheduled to undertake a desktop exercise to test the recently finalised BCP, the NBA’s premises were destroyed by flooding from a severe hailstorm.

At 3:00 am on Wednesday 28 February 2007, the NBA activated its BCP. Two and a half days later, the NBA had relocated to alternate premises, information technology systems were up and running and successful negotiations for a contingent supply of plasma-derived factor VIII had been concluded. The response to the

emergency demonstrated the NBA’s organisational efficiency and ability to continue functioning effectively during an emergency.

As a result of the BCP implementation, the NBA received a highly commended award in the Comcover 2007 Awards for Excellence in the risk initiative category. This category considers demonstrated excellence in risk management as it relates to a specific agency program or project.

Successful implementation of the BCP has provided short and long term benefits. In the short term, immediate business obligations were met with the suite of normal business functions operational within 14 business hours, during which time staff and stakeholders were kept well informed.

In the longer term, the NBA’s evident approach to risk management has increased our credibility amongst key stakeholders in blood sector wide and broader health sector contingency planning. The agency’s internal culture has also been strengthened, reflected by greater levels of trust and respect amongst staff and willingness to adopt a team approach to resolving key business issues.

Comcover Award for Risk Management


Customer service charter The NBA is committed to providing a professional, high quality and efficient service to clients, stakeholders and the general public in accordance with the Public Service Act 1999. Our roles and responsibilities in dealing with external clients, and their rights in dealing with us, are articulated in the NBA’s Customer Service Charter, which was developed in early 2007.

During the year, the NBA received 29 feedback responses. Of these, 100% were positive responses. The feedback received was wide ranging and included strong support for the IVIg Criteria to applauding innovative supply arrangements. The NBA addressed any issues in line with the Charter’s requirements.

The Customer Service Charter is available on the NBA website (http://www.nba.gov.au).

Communications The NBA produced a range of publications in 2007–08. The most notable were the:

Criteria for the Clinical Use of Intravenous ��Immunoglobulin (IVIg) in Australia

Initial Australian Haemovigilance Report��

Fresh Blood Products: Products ��Benchmarking and Demand Drivers Report.

Information communication technology The NBA’s Information Communication Technology Refresh was completed in 2007–08. This has enabled the NBA to assess future priorities for information management and develop a detailed plan for maximising the application of this technology.

The NBA launched its new website in February 2008. This user-friendly site is designed to be a tool for clinicians, stakeholders and the general public. It contains links to a range of guidelines either put forward by the NBA or in relation to appropriate blood use. It also provides information on the role, objectives and projects undertaken by the NBA.


Continuous improvement frameworkThrough the regular internal monthly consideration of performance improvement strategies, the NBA instigated a range of initiatives to enhance the efficiency and compliance of our operations. These activities specifically focused on a range of simple IT functionality improvements, documentation of corporate procedures, corporate training priorities and more efficient management of internal and external stakeholders’ meetings.

Our internal audit program and fraud control activities provide further reassurance on the effectiveness of our compliance framework, and through these activities improvements were instigated in:

documentation of non-blood procurement ��procedures

documentation of corporate procedures, ��including payroll and leave management

information technology��

physical and personnel security ��arrangements.

In addition, the NBA has maintained close monitoring of progress against required actions in our Fraud Control Plan and has maintained the application of appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes consistent with requirements of the Commonwealth Fraud Control Guidelines. The current fraud risk assessment and control plan will be updated by October 2008.

Ecologically sustainable development Furthering its commitment to ecologically sustainable development during the year, the NBA committed to minimising its carbon footprint created from fleet vehicles and interstate and international travel by having signed up to GreenFleet’s carbon offsetting program. Half of the NBA fleet vehicles are powered by liquid petroleum gas and fuel efficiency has been a key consideration when replacing fleet vehicles.

The NBA has also sought to hold teleconference meetings in preference to face-to-face meetings when feasible. This reduces the amount of travel undertaken by interstate parties, further helping to minimise the carbon footprint of the NBA’s operations.

Within the NBA premises, the installation of movement sensors and changing all lights to be on timers minimises electricity consumption outside business hours. The NBA is also currently trialling energy efficient light fittings in certain areas of its office.

Recycling is another area in which the NBA has sought to improve its performance. A recycling contract has been extended to ensure the continued provision of recycling services for office paper, cardboard, aluminium, plastic containers, printer consumables, telecommunication handsets and batteries. The NBA now purchases 100% recycled A4 paper for all office printing.

Part Four provides information on the NBA’s staff. It details the NBA’s staffing profile and describes human resource programs and activities.

4.1 Staffing

4.2 Work culture and conditions

4.3 Professional and personal development

4.4 Productivity gains

4.5 Commonwealth Disability Strategy

4.6 Occupational health and safety

Part FourOur people


4.1 Staffing

Workforce planning, staff retention and turnoverStaffing levels in the NBA fluctuated in 2007–08, as it has in previous years. The peak period of staff turnover took place during the second quarter.

Through the capability strategy developed during the year, we applied intense focus to maximising our retention rates through supporting the development and implementation of a number of innovative recruitment initiatives and reforming our induction process (see ‘Capability strategy’ in Part Three: Our performance).

Part of this project has been to review and re-emphasise our culture of encouraging staff development and learning, and to further build on our supportive and flexible work environment.

The average length of service for NBA staff is approximately two years. We are fortunate that 58% of our ongoing staff have been with the NBA for more than two years, and of those, 48% have been here for more than four years. This strengthens the NBA’s knowledge base and professional expertise.

Our overall staffing numbers as at 30 June 2008 are 52 employees, of which 44 are ongoing staff members and eight are non-ongoing staff members.

Current salary levels under the Collective Agreement are set out in Table 4.2.

The National Blood Authority (NBA) is fortunate to have staff members with an immense diversity of skills, knowledge and background. This covers clinical practice research and laboratory practices; commercial contract negotiation and project management; logistics and inventory management; information technology (IT); communication and secretariat support; and business planning and risk management. The NBA staffing complement comes from the private, public and not-for-profit sectors. Some staff members have more than 40 years experience in the workplace, while others have just begun their careers.

In 2007–08, the NBA was successful in attracting staff with international experience in blood management, the pharmaceutical industry, clinical practice and communications and publication design.

99Part Four: Our people 4.1 Staffing

Table 4.1 NBA staff numbers, as of 30 June 2008

Substantive role classification

Female full time

Female part time

Male full time

Male part time

Total

Statutory office holder 1

Senior executive service 1 3

Health economist 1

EL 2 4 3

EL Legal 1

APS 6 Legal 1

EL 1 8 1 9

APS 6 7 1 2

APS 5 3 2

APS 4 3

APS 3 1

Total 29 6 17 52

APS = Australian Public Service; EL = executive level.

Performance-based pay totalling $63,479.35 was awarded to four senior executive or equivalent staff members following assessment against their agreed work outcomes.

At 30 June 2008, 36 staff members were employed under the Collective Agreement. Fifteen staff members were engaged under Australian workplace agreements, of which four were Senior Executive Service staff.

During the year, the introduction of new workplace legislation led the National Blood

Authority to refine and adjust a range of human resource policies and practices, including those on occupational health and safety, the Collective Agreement, Australian workplace agreements, leave and superannuation.

A mix of non-salary benefits are available to nominated officers including leased vehicle, airline membership, superannuation, and home-based IT equipment.

Table 4.2 Salary levels

Classification CA Minimum

CA Maximum

AWA Maximum

Executive Level 2 $91 972 $103 664 $124 000

Executive Level 1 $77 089 $87 935 $95 864

Legal 1 $77 089 $93 333

APS Level 6 $62 730 $70 768

APS Level 5 $56 864 $60 017

APS Level 4 $52 281 $55 241

APS Level 3 $46 144 $51 149

APS = Australian Public Service; AWA = Australian workplace agreement; CA = collective agreement.


4.2 Work culture and conditions

The NBA has an active staff participation forum, which is made up of representatives from all teams within the NBA and is chaired by a representative from the executive group. One of the staff participation forum’s major achievements in 2007–08 was the successful negotiation of the NBA 2007–10 Collective Agreement, with 97% of staff members voting affirmative to the new agreement.

Since the changes to the employment bargaining framework introduced in February 2008, new staff are employed under the NBA Collective Agreement or, where appropriate, through a common law contract or Section 24(1) Determination of the Public Service Act 1999.

2007–08 also saw the launch of the NBA’s Wellbeing Program, which gives staff the opportunity to participate in weekly lunch time activities such as organised walks, stress buster comic relief and other wellbeing activities. Over 26% of the NBA’s staff participated in the Australian Bureau of Statistics’ (ABS) lunch time fun run in May 2008, many of whom completed the 7 km course in under an hour. This resulted in an overall fifth-place victory for the NBA team.

An NBA values statement was drafted in April to demonstrate the behaviours, ethics and overall approach that are important to staff and management. Clear commitment has been given to keep the statement alive by regular celebrations recognising excellent examples of the demonstration of values.

NBA values statementThe Golden Rules of the NBA

1. Actively listen, think and encourage engagement.

2. Criticise sparingly, praise generously.

3. Be part of the team.

4. Take responsibility for quality outcomes.

101Part Four: Our people 4.2 Work culture and conditions

What our values mean for how we work

We take responsibility for our outcomes

All staff proactively analyse issues and create solutions. We clarify expectations, set clear goals and maintain a commitment to work-life balance

We praise and support each other

We celebrate achievements; We ask – ‘What can I do to help?’

We encourage ongoing personal development

We take pride in learning and sharing this learning with our teams and do things smarter and better

We seek to always understand

We listen to and value all points of view. We never interrupt and we are patient

We are respectful We appreciate the workloads of all staff. We walk away from criticism of individuals or activities. We offer positive views.

We are courteous We are on time, we are polite, we accept and give feedback on performance and behaviour

We act on things that make a difference

We strive for personal leadership in our assigned tasks. We ensure we understand the links of today’s tasks to the future of the sector


from the TGA, DoHA and ACT Health at a number of our knowledge management forums. Our appreciation is extended to our fellows, suppliers and colleagues who have given generously of their time in presenting a range of sessions.

The skills and capabilities survey conducted in 2006 provides an excellent base for delivering learning outcomes, and supports our business needs. This survey will be redone in the first quarter of 2008–09 to ensure our staffing capabilities match our operational needs.

4.3 Professional and personal development

The majority of NBA staff members participate in a Professional Development Scheme. A wide range of training programs is available to staff to extend their knowledge and skills.

We take pride in ensuring our people are given opportunities in various arenas to develop and enhance skills through either:

internal training and our knowledge ��management forums

external training through conferences and ��seminars or accredited training organisations and learning institutions.

Over the past year, one focus has been providing those new to the public service with an understanding of how it works and how different the Australian Public Service (APS) is to private industry. For this we use the programs of the Australian Public Service Commission, as well as internal induction processes and sourced training on APS Code of Conduct and Values. The SES team has focussed on leadership, communication and networking. Compliance and governance training is ongoing as is the development of processes necessary for high performing organisations.

It is with pride that in 2007–08, 88% of staff undertook at least the target of seven days training. This commitment not only illustrates the passion NBA staff have to perform at a consistently high level but also our culture of valuing constant learning and growth in our skills and knowledge base.

This commitment is providing strong benefit for other Canberra based stakeholders as evidenced in the attendance of representatives

103Part Four: Our people 4.4 Productivity gains

4.4 Productivity gains

The NBA has made considerable savings from the reduction of staff turnover in the second half of the financial year. The annual staff turnover rate was reduced to 26% (annualised) six monthly in the second. This has had a

positive impact on improving corporate knowledge, skills, expertise, and reducing recruitment costs. Turnover tends to be at more junior levels with the loss of only two members of our senior leadership team of 12.

4.5 Commonwealth Disability Strategy

4.6 Occupational health and safety

The NBA has implemented the principles of the Commonwealth Disability Strategy (CDS). Internal staff member training incorporated education and information about the needs of people with disabilities in the workplace. The NBA continues to make the organisation accessible for people with disabilities through the following measures:

ensuring employment policies and ��procedures comply with the Disability Discrimination Act 1992

A change in occupational health and safety (OH&S) legislation means that the NBA must achieve a new compliance in a number of health and safety management requirements. We have appointed a new health and safety representative, and have scheduled appropriate training for staff members.

ensuring managers and recruitment officers ��apply reasonable adjustment policies

conducting training and staff development ��programs considerate of the needs of people with disabilities, including information on disability issues

using complaint and grievance mechanisms ��to address any potential issue raised by staff or the public.

Our OH&S assessments are conducted by an external OH&S expert and all employees regularly have their workstation assessed. All OH&S issues are addressed within 24 hours, as articulated in the NBA’s OH&S policy. This year, the NBA also organised influenza vaccinations for interested staff as a core element of our Business Continuity Plan (BCP) preparation.

Part Five explores current and future developments both nationally and internationally that may in future influence the management of blood and blood-related products in Australia.

Part FiveFuture trends in blood management and horizon scanning

National Blood Authority Annual Report 2007~08106

The National Blood Authority (NBA) has a function under the National Blood Authority Act 2003 to liaise with, and gather information from, governments, suppliers and others about matters relating to blood products and services. This function supports two of the governments’ secondary objectives under Clause 2 of the National Blood Agreement, which are to:

monitor the national and international ��environment in which the Australian blood sector operates for new technological, clinical, risk or other developments that may impact on the national blood supply

undertake national information gathering, ��monitoring of new developments, reporting and research in relation to the Australian blood sector.

To monitor international developments that may influence the management of blood and blood-related products in Australia, our focus is on:

information that may have an impact on ��global supply, demand and pricing such as changes in company structure, capacity, organisation and ownership

potential new product developments ��and applications

global regulatory and blood practice trends��

other emerging risks that could potentially ��put financial or other pressures on the Australian sector.

As part of this work, the NBA started a Review of New Technologies, New Techniques and New Products. The objectives of this Review are to:

identify, clarify and categorise advances in ��processes, techniques and technologies that impact on the blood sector and that the NBA should monitor to fulfil its functions under the National Blood Agreement; this should encompass blood collection methodologies, blood donation, donor selection, donation testing, product improvements, new products with widened or new clinical indication, distribution (issue, receipt, storage and transport) and patient blood management

consider the appropriate active role of the ��NBA in collecting and analysing this information

identify developed or emerging technologies ��and products that may have applicability to the Australian blood sector and their likely impact on future supply capacity, clinical demand and government funding options in the short, medium and long term

suggest a framework for determining the ��situations where the NBA might act as a proponent for the new products and technologies

suggest improved ongoing arrangements ��for how the NBA can continue to fulfil its role in this area, including any additional consultation arrangements with the sector which may be seen as desirable.

107Part Five: Future trends in blood management and horizon scanning

Figure 5.1 The scope of the Review of New Technologies, New Techniques and New Products

FRESH BLOODPLASMA

PRODUCTSBLOOD

MANAGEMENTRECOMBINANT

PRODUCTSPOLICY AND REGULATION

TRANSMISSIBLE DISEASE

MANUFACTURING

TESTING

SYNTHETIC BLOOD PRODUCTS

ADVERSE REACTIONS

HAEMOVIGILANCE

TRANSMISSIBLE DISEASE

MANUFACTURING

NEW PRODUCTS

INTERNATIONAL PRICING

(DEMAND)

INTERNATIONAL PRICING (SUPPLY)

TECHNIQUES before during and

after surgery

RISK IDENTIFICATION

OVERSEAS PROGRAMS

DEMAND MANAGEMENT

DURING CONSTRAINED

SUPPLY

NEW PRODUCTS

CHANGES TO PRODUCTS

SUPPLY, DEMAND AND PRICE

ADVERSE REACTIONS

AUSTRALIA

LOGISTICS

OVERSEAS


the development of knowledge where ��transfusion brings relatively assured benefits in excess of potential harm; this follows recent research that suggests transfusion does not always improve outcomes but can cause death or lengthen hospital stays

the potentially dramatic impact of demand ��for intravenous immunoglobulin (IVIg) on price if the range of uses for IVIg continues to expand, particularly with positive results being reported from early studies on its use in treating Alzheimer’s disease

the need for greater consideration of the ��evidence base for giving transfusions against the principle of ‘first do no harm’

the continuing expansion in the plasma ��collection industry in expectation of this increasing demand for IVIg

the development of new blood typing tests ��to improve speed and accuracy of typing, eg the United States of America’s (USA) Food and Drug Administration (FDA) announced approval in January 2008 of a system of 14 new tests; the system uses monoclonal antibodies to test for A, B, O, Rh factor and other factors that signify a rarer blood type

the suggestion that albumin may be used ��to improve cognitive score in Alzheimer’s disease, thus reducing the potential emphasis on IVIg

the potential for continuing improvement ��in outcomes through patient blood management, particularly perioperative management of anaemia, through:

– preoperative treatment of anaemia through dietary supplements or drugs

– cell salvage during surgery

– effective use of coagulation products and tissue sealants

Some of the matters of current interest with respect to fresh blood and plasma products, that will be covered by the Review include:

known infectious diseases such as Dengue ��fever, malaria and Chagas’ disease where virus mutation, climate change, travel or immigration may change their expected occurrence in Australia; this would lead to donor deferral to maintain the safety of the blood supply and would have an unfavourable impact on collection volumes

disease risks such as a possible avian ��influenza (bird flu) pandemic

pathogen testing and inactivation; for ��instance, there is a system operational in Europe which aims to reduce transfusion risks from viruses, bacteria and parasites from platelets

the continuing development of prion filters ��to eliminate the risk of variant Creutzfeldt-Jakob disease (vCJD — the human form of mad cow disease)

the possibility that the emphasis in bacterial ��testing for transfusion could shift from ‘hold and release’ to ‘bedside’ testing; this would mean the product transfused would be safe at the time of transfusion, not at the time of release

the impact of apheresis and leucodepletion ��(potentially increasing plasma collection volumes and increasing safety of whole blood, red cells and platelets)

the debate concerning transfusion-related ��acute lung injury (TRALI) and if it is of sufficient risk to suggest that high plasma volume components from female donors should be used for further manufacturing instead of transfusion

109Part Five: Future trends in blood management and horizon scanning

In the market for recombinant products, matters of current interest include:

the development of products with:��

– longer half-lives

– less demanding temperature conditions for storage

– a wider or more convenient range of vial sizes

– simpler delivery mechanisms

– improved formulation

changes in clinical practice, such as ��questioning by doctors as to whether transfusion is an automatic consequence of surgery or whether anaemia management is possible by other means

the development and use of blood ��substitutes which can act as oxygen carriers, and their trials for efficacy and safety; there are a number of these, some encouraged by battlefield potential, but there also suggestions that their use can result in positive harm.


The Review of New Technologies, New Techniques and New Products will report formally in December 2008, for consideration by the Jurisdictional Blood Committee (JBC) and the NBA Board. The review process itself, and the interaction with stakeholders concerning their view of future developments, has already had an impact and this will continue as consultations are widened.

It is acknowledged that the need to evaluate current and future developments within and around the blood sector will be ongoing and, as such, continue as a focus in the NBA’s discussions with the regulator, suppliers of blood and blood-related products and the clinical community.

ongoing research which may lead to a new ��product in the monopolistic recombinant factor VIIa market, effectively limiting price increases and improving security of supply

the possibility for development of ��recombinant products which could mimic any effect of IVIg in the treatment of Alzheimer’s disease, thus limiting the price increase which would be brought on by increasing demand for IVIg in the face of restricted supply.

Matters of more general recent interest include:

global developments with respect to stem ��cell research and use of cord blood

reported changes in the operation of the ��USA FDA such as:

– the authority to require postmarketing studies and changes to the labels of approved products

– an increased commitment to overseas inspections, following the widespread contamination of the world’s heparin supply

– the practice of requiring drug makers to study psychiatric side effects in clinical trials

– the ‘Sentinel’ initiative, a strategy to create and implement a national integrated electronic system for monitoring medical product safety

– amendments to its regulations on acceptance of foreign clinical studies that are not conducted under an investigational new drug application; the updated standards are to protect human subjects and ensure the quality and integrity of data obtained from these studies.

Part Six provides an overview of the NBA’s financial position in 2007–08, including a summary of the resources used to deliver objectives.

6.1 Summary resource table

6.2 Purchasing

6.3 Competitive tendering and contracting

6.4 Asset management

6.5 Advertising and market research

6.6 Consultants

6.7 Financial Management

Part SixOur finances


6.1 Summary resource table

and additional demand for FEIBA, Recombinant Factor VIII and IVIg. The variance of $0.194 million for departmental price of outputs relates to additional section 31 revenue recognition in 2007–08. Staffing levels are over budget due to contractors being established as non-ongoing employees on the NBA payroll system.

Table 6.1 Total resources for Outcome 1 ($ k), 2007–08

(1) Actual

2007–08 ($’000)

(2) budget

2007–08 ($’000)

Variation (1)–(2)

($’000)

budget 2007–08

($’000)

ADMINISTERED EXPENSES

Grants 385 029 395 983 (10 954) 368 108

Suppliers 340 322 307 114 33 208 304 614

TOTAL ADMINISTERED EXPENSES 725 351 703 097 22 254 672 722

Output 1: Manage and coordinate Australia’s blood supply in accordance with the National Blood Agreement agreed by the Australian Government, States and Territories.

9 021 10 207 (1 186) 10 118

Revenue from Government (Appropriation) for Departmental Outputs

5 993 5 993 – 6 021

Revenue from Other Sources 4 408 4 214 194 4 097

TOTAL DEPARTMENTAL PRICE OF OUTPUTS 10 401 10 207 194 10 118

TOTAL FOR OUTCOME 1 (Total Price of Outputs and Administered Expenses)

735 752 713 304 22 448 682 840

STAFFING 49 40 9 39

(a) (b)

(a) This column shows the full year budget including additional and supplementary estimates.

(b) This column shows the budget estimates prior to additional estimates.

The total value of National Blood Authority (NBA) outputs in 2007–08 was $5.9 million. Table 6.1 summarises the resources used to deliver the NBA’s output in 2007–08. Total administered expenses variance of $22.3 million is mainly due to the capital payment for the ARCBS being rolled over from 2006–07 to 2007–08 in accordance with the agreement,

113Part Six: Our finances 6.2 Purchasing

6.2 Purchasing

Provision of software and management ��solution for operation of the Australian Bleeding Disorders Registry (ABDR)

Standing Offer Arrangements for the supply ��of diagnostic reagents

Third Party Review of the Australian ��Red Cross Blood Service’s governance arrangements

Third Party Review of the Distribution ��Arrangements for Blood Products

The NBA has outsourced all air travel bookings. As part of our service delivery requirements with our provider, the NBA requires ’best fare of the day’ when procuring air travel for all NBA employees. As part of the Australian Government requirements, the NBA is also required to set a minimum smaller airlines use of 25% on the Canberra-Sydney route for officers undertaking official air travel.

The NBA administered no discretionary grants during 2007–08.

Exempt contractsThe Chief Executive Officer did not issue any exemptions from the required publication of any contract or standing offer in the Purchasing and Disposal Gazette during 2007–08.

The NBA adheres to the principles of the Commonwealth Procurement Guidelines and Best Practice Guidance when undertaking procurement. The guidelines are applied to the NBA’s activities through the Chief Executive’s and management instructions and key business processes (KBP).

As one of the NBA’s key functions — to procure blood and blood-related products — the NBA has developed KBPs to ensure that all procedures and processes are documented and followed. This year the NBA developed and implemented a non-blood procurement KBP to be used by staff when procuring non-blood product goods and services. The NBA internal auditor has over the last three years, completed a number of audit programs that tested this process within the NBA to ensure that it meets government policy and better practice. The audit findings were consistently favourable in complying with mandatory processes and offered the NBA some improvement opportunities to deliver an optimal process for the future. The findings are being implemented. The KBP will be continually reviewed and refined as part of the NBA’s own requirement for continual improvement in the management of its core business functions.

The NBA completed a number of open source procurements during 2007–08 in line with the annual procurement plan. The key procurements for 2007–08 were arrangements for:

Standing Offer Arrangement for the ��Supply of Imported Intravenous Immunoglobulin (IVIg)


6.3 Competitive tendering and contracting

There were no contracts let in 2007–08 of $100 000 or more (inclusive of GST) that did not provide for the Auditor-General to have access to the contractor’s premises.

6.4 Asset management

Physical assets are not a significant aspect of the NBA’s strategic management. An asset replacement strategy has been developed by the NBA to ensure that it has adequate funding in place for the replacement of assets as these come to the end of their useful lives.

During 2007–08, the total expenditure for payments over $10 300 on all advertising, market research and direct mail services amounted to $36 938. The expenditure for advertising, market research and direct mailing services reported in 2006–07 was $38 090.

6.5 Advertising and market research

Table 6.2 Total expenditure for payments over $10 300 on advertising, market research and direct mailing services, 2007–08

Organisation Purpose Expenditure ($)

HMA Blaze Pty Ltd Advertising 6 797

National Mailing & Marketing Pty Ltd Direct Mail Service 16 880

HMA Blaze Pty Ltd Recruitment Advertising 13 261

Total expenditure for payments over $10 300 (gST inclusive) 36 938

Note: All amounts are GST inclusive.

Details of total payments of $10 300 and above, as required under section 311A of the Commonwealth Electoral Act 1918, are contained in Table 6.2. All amounts are GST inclusive.

115Part Six: Our finances 6.6 Consultants

most of its consultancies. Where necessary, these standard form documents are adapted by the NBA to suit individual circumstances.

Table 6.3 shows total expenditure on all consultancy services by year, covering both new contracts let in the applicable year and ongoing contracts let in previous years.

Table 6.4 provides details of consultancy contracts let by the NBA in 2007–08 and the value of the contract over its entire life. Contracts with a value of less than $10 000 have not been included, in line with annual reporting requirements of the Joint Committee of Public Accounts and Audit.

6.6 Consultants

In 2007–08, nine new consultancy contracts were entered into involving total actual expenditure of $346 110 (GST inclusive). In addition, eight ongoing consultancy contracts were active during the 2007–08 year, involving total actual expenditure of $1 277 971 (GST inclusive).

The policies and procedures for selecting consultants, and approving the required expenditure, are set out in Chief Executive and management instructions and KBP. These processes adhere to the principles of the Commonwealth Procurement Guidelines and Best Practice Guidance.

A suite of standard form contracts has been developed for use by NBA staff in setting up

Table 6.3 Total expenditure on consultancy services, 2005–06 to 2007–08

2007–08 2006–07 2005–06

No. Let

Total expenditure on new and existing consultancies ($)

No. Let


No. Let


9 1 624 081 7 582 366 13 754 304


Table 6.4 Consultancy services of $10 000 or more, 2007–08

Consultant Name Description Contract price

(gST incl)

Selection Process

Justification

Datum Point Pty Ltd The procurement of contract services for the evaluation of Octoplas, a submission under Schedule 4 of the National Blood Agreement

133 861.99 Open Tender A

University of Technology Sydney – Centre for Health Economic Research and Evaluation (CHERE)

The procurement of Contract services for the development of the Evaluation Framework and Methodology for the Assessment of National Blood Supply Change Proposals

108 845.00 Open Tender A

Cordelta Pty Ltd For the procurement of specialist technical advice to the National Blood Authority on system development activities

50 000.00 Restricted Source

B

The Loch Group Pty Limited

Consultancy services for an independent member of the National Blood Authority’s Audit Committee

19 800.00 Direct Sourcing

B

Morison Consulting Pty Ltd

Consultancy services for an independent member of the National Blood Authority’s Audit Committee

22 000.00 Direct Sourcing

B

Blake Dawson Waldron

Legal advice and services for NBA data projects

130 000.00 Restricted Source

C

Oakton Services Pty Ltd

Provision of contract services 27 500.00 Direct Sourcing

C

WalterTurnbull Pty Ltd

Provision of Fraud Control Services 25 567.50 Restricted Source

B

DLA Phillips Fox Provision of legal advice and services 14 102.00 Open Tender C

a Explanation of selection process terms:

Open tender: A procurement procedure in which a request for tender is published inviting all businesses that satisfy the

conditions for participation to submit tenders.

Select tender: A procurement procedure in which the procuring agency selects which potential suppliers are invited to

submit tenders in accordance with the mandatory procurement procedures.

Direct sourcing: A procurement process, available only under certain defined circumstances, in which an agency may contact

a single potential supplier or suppliers of its choice and for which conditions for direct sourcing apply under the mandatory

procurement procedures.

b Justification for decision to use consultancy:

A — requirement for specialist expertise not available within the NBA

B — requirement for independence considered essential

C — Requirement for skills currently unavailable within the NBA.

Note: All figures are GST inclusive

117Part Six: Our finances 6.7 Financial Management

The NBA has a number of key initiatives underway that will enable the NBA to meet all legislated and mandated requirements and to drive demand management strategies to influence the rate of growth of administered outlays. In 2007–08, the delay in some of these projects was due to delays in recruiting, other priorities and the lack of key resources to drive some of the projects. The NBA is also redeveloping the Australian Bleeding Disorders Registry (ABDR) and this is expected to go live later in 2008. Further work continues on data strategy and systems that may be required to capture sector data to inform the clinical community.

Overview of financial performance in 2007–08This section provides a summary of the NBA’s financial performance for 2007–08. Departmental and administered results are shown in the audited financial statements, and this summary should be read in conjunction with those statements.

Audit report

The NBA received an unqualified audit report for 2007–08, with no more than category ‘C’ findings.

Operating result

The NBA’s Income Statement reports an operating surplus for 2007–08 of $1.38 million (in 2006–07 a $1.166 million operating surplus was reported).

Table 6.5 shows the NBA’s key results for the financial years 2006–07 and 2007–08.

6.7 Financial Management

The financial management of the NBA’s budget is driven by both our responsibilities and our resource structure. As a material statutory agency, the NBA has a range of corporate and compliance responsibilities under the National Blood Authority Act 2003, the Financial Management and Accountability Act 1997, the Public Service Act 1999 and a range of ministerial, parliamentary and financial reporting requirements.

FundingThe NBA is funded 63% by the Australian Government and 37% by the state and territory governments (the jurisdictions). The funding is for both the national blood supply and the operations of the NBA. All jurisdictions must approve any changes in the supply plan for products used in the blood sector, new products and initiatives and any change in resources for the NBA. Once agreement is reached by the jurisdictions, they must then seek agreement for the funds from their individual treasury or finance departments. Budgets related to these funding requests must then be approved by the AHMC. Once agreement is provided the funding request must be implemented and performance monitored.

The functions of the NBA are outlined in the National Blood Authority Act 2003 and the National Blood Agreement.

The NBA also received funding for a range of one-off investments to establish in particular, the data and system infrastructure that will be required to drive and inform strategies for demand management. The first stage of this process was the implementation of the Integrated Data Management System (IDMS) that went live 30 June 2008.


Table 6.5 Key results in financial performance

2007–08 $’000

2006–07 $’000

Movement (per cent)

Contributions from the Australian Government 6 107 6 161 –1%

Contributions from States and Territories and Other Revenue

4 294 4 064 6%

Total revenue 10 401 10 225 2%

Employee Expenses 5 826 5 712 2%

Supplier Expenses 2 621 2 941 –11%

Other Expenses 574 406 41%

Total Expenses 9 021 9 059 0%

Operating result 1 380 1 166 18%


Income statementRevenue

Total revenue received in 2007–08 was $10.401 million, made up of $5.993 million from appropriations for outputs, $0.114 million from resources received free of charge, $4.294 million from contributions received from states and territories. This represented an increase of $0.176 million over the revenue for 2006–07.

Revenue from other sources are contributions received under the net appropriation instrument (S31 receipts) arising from officers transferring from other agencies and part receipt of insurance compensation following flood damage to the NBA premises in February 2007.

Expenses

The NBA’s expenses for 2007–08 were $0.038 million less than 2006–07.

Balance sheetAssets

The NBA’s assets may be divided into four main categories:

cash��

infrastructure, plant and equipment��

intangibles (nonphysical assets such ��as software)

receivables (amounts due to be paid ��to the NBA).

The proportions of each category of asset held during 2007–08 are illustrated in Figure 6.1.

The NBA had $0.063 million in cash as at 30 June 2008. The cash balance is the minimum required to be held in the NBA bank account at the end of each month.

Special accounts

The NBA manages the National Blood Accounts and National Managed Fund Special Account.

The NBA was established on 1 July 2003 with the principal role of managing the national blood arrangements, ensuring sufficient supply and to provide a new focus on the quality and appropriate use of blood and blood-related products. The funding for blood and blood-related products are funded from a special account (the National Blood Account) established under Section 40 of the National Blood Authority Act 2003. The NBA’s activities contributing to its outcome are classified as either departmental or administered expenses. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled by the agency in its own right, that is, for the operations of the NBA. Administered activities involve the management or oversight by the NBA on behalf of the government of activities and expenses controlled or incurred by Australian governments; mainly procurement of the products and services that make up the blood supply.

The National Managed Fund (Blood and Blood Products) Special Account, established under Section 20 of the Financial Management and Accountability Act 1997, was set up for the purpose of receipting monies and payment of all expenditure related to the management of blood and blood-related products liability claims against the Australian Red Cross Society in relation to the activities undertaken by the operating division of the Society known as the Australian Red Cross Blood Service (ARCBS). Contributions to the Account include annual funding from all governments and the ARCBS and special account interest from the Australian Government.


Liabilities

The NBA’s total liabilities decreased by $0.266 million to $5.1 million, down from $5.3 million in 2006–07.

Administered items

The NBA is funded by states and territories and the Australian Government for the supply of blood and blood-related products in Australia. The total funding received for 2007–08 is depicted in Figure 6.2.

Administered expenses

Table 6.6 provides for comparison between the NBA’s administered expenses in 2007–08 and 2006–07.

Administered expenses in 2007-08 have increased over 2006–07 due to increased demand for most products and a change in mix of product issued.

Funds received from all jurisdictions are swept into the Official Public Account held by the Department of Finance and Administration. Under the NBA special account, this is recorded as appropriation receivable and represents 74% of our asset base. The funds have been set aside to enable the NBA to implement key IT projects and consultancies on the quality and appropriate use of products in Australia. 2008–09 should see the NBA further utilise this funding.

The NBA’s total assets increased from $10.6 million in 2006–07 to $11.9 million in 2007–08. This increase was due to increased intangibles as a result of the IT implementation undertaken in the NBA.

Table 6.6 Key results of administered expenses

Administered Expense 2007–08 $’000

2006–07 $’000

Movement (per cent)

Grants to the Private Sector – Non Profit Organisation 385 029 305 770 26%

Rendering of goods and services – external entities 340 322 303 080 12%

Total Administered expenses 725 351 608 850 19%


Figure 6.1 Composition of NBA assets at 30 June 2008

Commonwealth

ACTNT

Tas

WA

SA

Qld

Vic

NSW

Figure 6.2 Composition of contributions from all governments, 2007–08

Cash 1%

Receivables 77%

Intangibles 14%

Infrastructure Plant and

Equipment 8%


Administered liabilities

Administered liabilities are comprised of accrued expenses, creditors (suppliers) and unearned revenue. There was a decrease of $10.7 million in liabilities in 2007–08 over 2006–07. Supplier liabilities increased by $6.2 million due increased demand in 2007–08.

Unearned revenue decreased by $16.9 million in 2007-08, this is due to funding received from jurisdictions being held over until 2008–09.

Administered assets

Administered assets are comprised of inventory held for distribution, including the National Reserve of blood products, and Receivables. The decrease in Administered Assets of $12.5 million in 2007–08 over 2006–07 is due to a decrease in Inventories held by the NBA through the recognition of plasma derived products held by the ARCBS and a prepayment of supplier costs. Receivables for the end of 2007–08 increased by $2.1 million and related to an increase in GST receivable from the Australian Taxation Office due to an increase in supplier expense accruals at year end.

Inventories decreased by $4.9 million and are under the control of the NBA but held by a major supplier and managed by them on behalf of the NBA.

The NBA has no Administered prepayments for 2007–08.

7.1 Financial Statements

7.2 Freedom of Information Statement

7.3 Blood Products supplied by the ARCBS

7.4 Plasma Products supplied under contract

Part SevenAppendices


7.1 Financial Statements

125Part Seven: Appendices 7.1 Financial Statements


NATIONAL BLOOD AUTHORITYINCOME STATEMENTfor the year ended 30 June 2008

Notes 2008 2007$’000 $’000

INCOME

RevenueRevenue from Government 3A 5 993 6 065 Sale of goods and rendering of services 3B 4 294 4 064

Total revenue 10 287 10 129

GainsOther gains 3C 114 96

Total gains 114 96

Total income 10 401 10 225

EXPENSES

Operating expensesEmployee benefits 4A 5 826 5 712 Suppliers 4B 2 621 2 941 Depreciation and amortisation 4C 554 284 Write-down and impairment of assets 4D 20 111 Losses from asset sales 4E - 11

Total expenses 9 021 9 059

Surplus 1 380 1 166

The above statement should be read in conjunction with the accompanying notes 1

NATIONAL BLOOD AUTHORITYINCOME STATEMENTfor the year ended 30 June 2008

Notes 2008 2007$’000 $’000

INCOME

RevenueRevenue from Government 3A 5 993 6 065 Sale of goods and rendering of services 3B 4 294 4 064

Total revenue 10 287 10 129

GainsOther gains 3C 114 96

Total gains 114 96

Total income 10 401 10 225

EXPENSES

Operating expensesEmployee benefits 4A 5 826 5 712 Suppliers 4B 2 621 2 941 Depreciation and amortisation 4C 554 284 Write-down and impairment of assets 4D 20 111 Losses from asset sales 4E - 11

Total expenses 9 021 9 059

Surplus 1 380 1 166



NATIONAL BLOOD AUTHORITYBALANCE SHEETas at 30 June 2008

Notes 2008 2007$’000 $’000

ASSETS

Financial assetsCash 5A,9 63 53 Trade and other receivables 5B 9 252 9 242

Total financial assets 9 315 9 295

Non-financial assetsLeasehold improvements 6A, 6D 144 228 Infrastructure, plant and equipment 6B, 6D 726 240 Intangibles 6C, 6D 1 689 805 Other non-financial assets 6E 67 17

Total non-financial assets 2 626 1 290

Total assets 11 941 10 585

LIABILITIES

PayablesSuppliers 7A 999 659 Other payables 7B 3 042 3 691

Total payables 4 041 4 350

ProvisionsEmployee provisions 8 1 012 969

Total provisions 1 012 969

Total liabilities 5 053 5 319

NET ASSETS 6 888 5 266

EQUITYReserves 15 15 Contributed equity 812 812 Retained earnings 6 061 4 439

TOTAL EQUITY 6 888 5 266

Current assets 9 382 9 312 Non-current assets 2 559 1 273 Current liabilities 4 927 5 040 Non-current liabilities 126 279


NATIONAL BLOOD AUTHORITYBALANCE SHEETas at 30 June 2008

Notes 2008 2007$’000 $’000

ASSETS

Financial assetsCash 5A,9 63 53 Trade and other receivables 5B 9 252 9 242


Non-financial assetsLeasehold improvements 6A, 6D 144 228 Infrastructure, plant and equipment 6B, 6D 726 240 Intangibles 6C, 6D 1 689 805 Other non-financial assets 6E 67 17


Total assets 11 941 10 585

LIABILITIES

PayablesSuppliers 7A 999 659 Other payables 7B 3 042 3 691


ProvisionsEmployee provisions 8 1 012 969

Total provisions 1 012 969

Total liabilities 5 053 5 319

NET ASSETS 6 888 5 266

EQUITYReserves 15 15 Contributed equity 812 812 Retained earnings 6 061 4 439

TOTAL EQUITY 6 888 5 266

Current assets 9 382 9 312 Non-current assets 2 559 1 273 Current liabilities 4 927 5 040 Non-current liabilities 126 279



NA

TIO

NA

L B

LOO

D A

UTH

OR

ITY

STA

TEM

ENT

OF

CH

AN

GES

IN E

QU

ITY

as a

t 30

June

200

8

2008

2007

2008

2007

2006

-07

2005

-06

2008

2007

2008

2007

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

Ope

ning

bal

ance

Bala

nce

carri

ed fo

rwar

d fro

m p

revi

ous

perio

d4

439

3

273

1

5

2

1

-

-

8

12

406

5

266

3

700

Adju

stm

ent f

or e

rrors

242

-

-

-

-

-

-

-

2

42

-

Adju

stm

ent f

or c

hang

es in

acc

ount

ing

polic

y-

-

-

-

-

-

-

-

-

-

Adj

uste

d op

enin

g ba

lanc

e4

681

3

273

1

5

2

1

-

-

8

12

406

5

508

3

700

Inco

me

and

expe

nse

Rev

alua

tion

adju

stm

ent

-

-

-

( 6)

-

-

-

-

-

( 6)

Subt

otal

inco

me

and

expe

nses

reco

gnis

ed D

irect

ly in

Equ

ity4

681

3

273

1

5

1

5

-

-

8

12

406

5

508

3

694

Surp

lus

for t

he y

ear

1 38

0

1 16

6

-

-

-

-

-

-

1 38

0

1 16

6

Tota

l inc

ome

and

expe

nses

6 06

1

4 43

9

15

15

-

-

812

4

06

6 88

8

4 86

0

Tran

sact

ions

with

ow

ners

Con

tribu

tions

by

owne

rs

Appr

opria

tion

(equ

ity in

ject

ion)

-

-

-

-

-

-

-

406

-

4

06

Subt

otal

tran

sact

ions

with

ow

ners

-

-

-

-

-

-

-

406

-

4

06

Tran

sfer

s be

twee

en e

quity

com

pone

nts

-

-

-

-

-

-

-

-

-

-

Clo

sing

bal

ance

as

at 3

0 Ju

ne6

061

4

439

1

5

1

5

-

-

8

12

812

6

888

5

266

Con

trib

uted

Equ

ity/C

apita

lTo

tal E

quity

Item

Ret

aine

d Ea

rnin

gsA

sset

Rev

alua

tion

Res

erve

Oth

er R

eser

ves

The

abov

e st

atem

ent s

houl

d be

read

in c

onju

nctio

n w

ith th

e ac

com

pany

ing

note

s3


NATIONAL BLOOD AUTHORITYCASHFLOW STATEMENTfor the year ended 30 June 2008

Notes 2008 2007$’000 $’000

OPERATING ACTIVITIESCash received

Appropriations 5 993 6 065 Goods and services 3 637 4 053 Net GST received 463 381

Total cash received 10 093 10 499

Cash usedEmployees 5 816 5 692 Suppliers 2 555 3 182

Total cash used 8 371 8 874

Net cash flows from operating activities 9 1 722 1 625

INVESTING ACTIVITIESCash used

Purchase of infrastructure, plant and equipment 1 308 171 Purchase of intangibles - work in progress 417 669

Total cash used 1 725 840

Net cash flows (used by) investing activities (1 725) ( 840)

FINANCING ACTIVITIESCash received

Appropriations - contributed equity 317 495

Total cash received 317 495

Net cash flows from financing activities 317 495

Net increase in cash held 314 1 280 Cash at the beginning of the reporting period 53 61

Cash transferred to the Official Public Account ( 304) (1 288)

Cash at end of the reporting period 5A 63 53


NATIONAL BLOOD AUTHORITYCASHFLOW STATEMENTfor the year ended 30 June 2008

Notes 2008 2007$’000 $’000

OPERATING ACTIVITIESCash received

Appropriations 5 993 6 065 Goods and services 3 637 4 053 Net GST received 463 381


Cash usedEmployees 5 816 5 692 Suppliers 2 555 3 182


Net cash flows from operating activities 9 1 722 1 625

INVESTING ACTIVITIESCash used

Purchase of infrastructure, plant and equipment 1 308 171 Purchase of intangibles - work in progress 417 669

Total cash used 1 725 840

Net cash flows (used by) investing activities (1 725) ( 840)

FINANCING ACTIVITIESCash received

Appropriations - contributed equity 317 495

Total cash received 317 495

Net cash flows from financing activities 317 495

Net increase in cash held 314 1 280 Cash at the beginning of the reporting period 53 61

Cash transferred to the Official Public Account ( 304) (1 288)

Cash at end of the reporting period 5A 63 53



NATIONAL BLOOD AUTHORITYSCHEDULE OF COMMITMENTS AND CONTINGENCIESas at 30 June 2008

SCHEDULE OF COMMITMENTS 2008 2007$’000 $’000

BY TYPE

Capital commitmentsInfrastructure, plant and equipment - 954 Intangibles 373 - Other capital commitments - 661 Total capital commitments 373 1 615

Other commitmentsOperating leases ¹ 630 994 Other commitments 918 1 172 Total other commitments 1 548 2 166

Commitments receivableGST recoverable on commitments 175 344 Total commitments receivable 175 344

Net commitments by type 1 746 3 437

BY MATURITY

Capital commitmentsOne year or less 195 1 615 From one to five years 178 - Total capital commitments 373 1 615

Operating lease commitmentsOne year or less 504 420 From one to five years 126 574 Total operating lease commitments 630 994

Other commitments payableOne year or less 799 892 From one to five years 119 280 Total other commitments payable 918 1 172

Other commitments receivableOne year or less 136 266 From one to five years 39 78 Total other commitments receivable 175 344

Net commitments by maturity 1 746 3 437

NB: Commitments are GST inclusive where relevant.¹ Operating leases included are effectively non cancellable and comprise:

SCHEDULE OF CONTINGENCIES

Quantifiable Contingencies

Unquantifiable but material contingencies are disclosed in Note 13: Contingent Liabilities and Assets

General description of leasing arrangementThe current lease for office accommodation expires on 31 October 2009. At 30 June 2008, no future lease agreement has been signed.

Non-contingent rentals exist. There are no renewal or purchase options available to the Authority.

The National Blood Authority office accommodation sustained water damage in February 2007 following a hail storm that affected many buildings in Canberra city. The insurance claim for material damage and consequential loss has been submitted to Comcover for approval and subsequent payment. To date, the NBA has been advised by the claim assessors that $249,409 for material damage has been validated and recommended to Comcover for payment and this has been recognised in the 2007-08 statements. The NBA's claim of $170,129 for consequential loss is still under review with the insurance assessors. It is expected that this will be finalised in the 2008-09 financial year at which time the claim will be submitted to Comcover for approval. At that time it will be recognised in the financial statements.

Agreements for the provision of motor vehicles to senior executive officers

Lease for office accommodationNature of lease

The above schedule should be read in conjunction with the accompanying notes 5

NATIONAL BLOOD AUTHORITYSCHEDULE OF COMMITMENTS AND CONTINGENCIESas at 30 June 2008

SCHEDULE OF COMMITMENTS 2008 2007$’000 $’000

BY TYPE

Capital commitmentsInfrastructure, plant and equipment - 954 Intangibles 373 - Other capital commitments - 661 Total capital commitments 373 1 615

Other commitmentsOperating leases ¹ 630 994 Other commitments 918 1 172 Total other commitments 1 548 2 166

Commitments receivableGST recoverable on commitments 175 344 Total commitments receivable 175 344

Net commitments by type 1 746 3 437

BY MATURITY

Capital commitmentsOne year or less 195 1 615 From one to five years 178 - Total capital commitments 373 1 615

Operating lease commitmentsOne year or less 504 420 From one to five years 126 574 Total operating lease commitments 630 994

Other commitments payableOne year or less 799 892 From one to five years 119 280 Total other commitments payable 918 1 172

Other commitments receivableOne year or less 136 266 From one to five years 39 78 Total other commitments receivable 175 344

Net commitments by maturity 1 746 3 437

NB: Commitments are GST inclusive where relevant.¹ Operating leases included are effectively non cancellable and comprise:

SCHEDULE OF CONTINGENCIES


Unquantifiable but material contingencies are disclosed in Note 13: Contingent Liabilities and Assets

General description of leasing arrangementThe current lease for office accommodation expires on 31 October 2009. At 30 June 2008, no future lease agreement has been signed.

Non-contingent rentals exist. There are no renewal or purchase options available to the Authority.

The National Blood Authority office accommodation sustained water damage in February 2007 following a hail storm that affected many buildings in Canberra city. The insurance claim for material damage and consequential loss has been submitted to Comcover for approval and subsequent payment. To date, the NBA has been advised by the claim assessors that $249,409 for material damage has been validated and recommended to Comcover for payment and this has been recognised in the 2007-08 statements. The NBA's claim of $170,129 for consequential loss is still under review with the insurance assessors. It is expected that this will be finalised in the 2008-09 financial year at which time the claim will be submitted to Comcover for approval. At that time it will be recognised in the financial statements.

Agreements for the provision of motor vehicles to senior executive officers

Lease for office accommodationNature of lease



NATIONAL BLOOD AUTHORITYSCHEDULE OF ADMINISTERED ITEMS

2008 2007Income administered on behalf of Government Notes $’000 $’000for the year ended 30 June 2008

RevenueNon-taxation revenues

State and Territory contributions 15 268 500 223 957 Other sources of non-taxation revenues 15 - 22 990

Total non-taxation revenues 268 500 246 947

Total revenues administered on behalf of Government 268 500 246 947

Expenses administered on behalf of Governmentfor the year ended 30 June 2008

Grants 16 385 029 305 770 Suppliers 16 340 322 303 080

Total expenses administered on behalf of Government 725 351 608 850


NATIONAL BLOOD AUTHORITYSCHEDULE OF ADMINISTERED ITEMS

2008 2007Income administered on behalf of Government Notes $’000 $’000for the year ended 30 June 2008

RevenueNon-taxation revenues

State and Territory contributions 15 268 500 223 957 Other sources of non-taxation revenues 15 - 22 990

Total non-taxation revenues 268 500 246 947

Total revenues administered on behalf of Government 268 500 246 947

Expenses administered on behalf of Governmentfor the year ended 30 June 2008

Grants 16 385 029 305 770 Suppliers 16 340 322 303 080

Total expenses administered on behalf of Government 725 351 608 850



NATIONAL BLOOD AUTHORITYSCHEDULE OF ADMINISTERED ITEMS (continued)

2008 2007Assets administered on behalf of Government Notes $’000 $’000as at 30 June 2008

Financial assetsCash - - Receivables 17A 11 103 8 375


Non-financial assetsInventories 17B 60 364 65 249 Intangibles 17C 296 - Other non-financial assets 17D - 10 071


Total assets administered on behalf of Government 71 763 83 695

Liabilities administered on behalf of Governmentas at 30 June 2008

PayablesSuppliers 18A 34 518 28 331 Unearned income 18B 20 083 35 012

Total liabilities administered on behalf of Government 54 601 63 343



2008 2007Assets administered on behalf of Government Notes $’000 $’000as at 30 June 2008

Financial assetsCash - - Receivables 17A 11 103 8 375


Non-financial assetsInventories 17B 60 364 65 249 Intangibles 17C 296 - Other non-financial assets 17D - 10 071


Total assets administered on behalf of Government 71 763 83 695

Liabilities administered on behalf of Governmentas at 30 June 2008

PayablesSuppliers 18A 34 518 28 331 Unearned income 18B 20 083 35 012

Total liabilities administered on behalf of Government 54 601 63 343




2008 2007Notes $’000 $’000

Administered Cash Flowsfor the year ended 30 June 2008

OPERATING ACTIVITIES

Cash receivedState and Territory contributions 253 316 237 644 Net GST Received 69 469 63 344 Other - -


Cash usedGrant Payments 423 318 336 347 Suppliers 352 030 363 323


Net cash flows (used by) operating activities (452 563) (398 682)

INVESTING ACTIVITIES

Cash usedPurchase of intangibles 296

Total cash used 296 -

Net cash flows (used by) investing activities ( 296) -

Net (decrease) in cash held (452 859) (398 682)

Cash at the beginning of the reporting period - - Cash from Official Public Account for:Appropriations - - Special account 775 644 699 670

775 644 699 670

Cash to Official Public Account for:Appropriations - - Special account 322 785 300 988

322 785 300 988

Cash at end of the reporting period - -



2008 2007Notes $’000 $’000

Administered Cash Flowsfor the year ended 30 June 2008

OPERATING ACTIVITIES

Cash receivedState and Territory contributions 253 316 237 644 Net GST Received 69 469 63 344 Other - -


Cash usedGrant Payments 423 318 336 347 Suppliers 352 030 363 323


Net cash flows (used by) operating activities (452 563) (398 682)

INVESTING ACTIVITIES

Cash usedPurchase of intangibles 296

Total cash used 296 -

Net cash flows (used by) investing activities ( 296) -

Net (decrease) in cash held (452 859) (398 682)

Cash at the beginning of the reporting period - - Cash from Official Public Account for:Appropriations - - Special account 775 644 699 670

775 644 699 670

Cash to Official Public Account for:Appropriations - - Special account 322 785 300 988

322 785 300 988

Cash at end of the reporting period - -




2008 2007Administered Commitments $’000 $’000as at 30 June 2008

BY TYPE

Capital commitmentsIntangibles 1 071 -

Total capital commitments 1 071 -

Other commitmentsOther commitments ¹ 919 967 1 606 633

Total other commitments 919 967 1 606 633

Commitments receivableGST recoverable on commitments 83 731 146 058

Total commitments receivable 83 731 146 058

Net commitments by type 837 307 1 460 575

BY MATURITY

Capital commitments

One year or less 330 - From one to five years 741 -


Other commitments

One year or less 771 354 692 831 From one to five years 148 613 913 802

Total other commitments ¹ 919 967 1 606 633

Commitments receivableOne year or less 70 153 62 985 From one to five years 13 578 83 072


Net commitments by maturity 837 307 1 460 575

NB: All commitments are GST inclusive where relevant

¹ Other commitments relate to amounts payable under agreements or contracts in respect of which the grantee or supplier has yet to provide goods or services for blood or blood related products required under the agreement or contract to meet demand under the National Supply Plan and Budget.



2008 2007Administered Commitments $’000 $’000as at 30 June 2008

BY TYPE

Capital commitmentsIntangibles 1 071 -


Other commitmentsOther commitments ¹ 919 967 1 606 633

Total other commitments 919 967 1 606 633

Commitments receivableGST recoverable on commitments 83 731 146 058


Net commitments by type 837 307 1 460 575

BY MATURITY

Capital commitments

One year or less 330 - From one to five years 741 -


Other commitments

One year or less 771 354 692 831 From one to five years 148 613 913 802

Total other commitments ¹ 919 967 1 606 633

Commitments receivableOne year or less 70 153 62 985 From one to five years 13 578 83 072


Net commitments by maturity 837 307 1 460 575

NB: All commitments are GST inclusive where relevant

¹ Other commitments relate to amounts payable under agreements or contracts in respect of which the grantee or supplier has yet to provide goods or services for blood or blood related products required under the agreement or contract to meet demand under the National Supply Plan and Budget.




Administered Contingenciesas at 30 June 2008

There were no quantifiable administered contingent liabilities as at 30 June 2008.

Statement of Activities Administered on Behalf of Government

The major activities of the National Blood Authority are directed towards managing national blood arrangements, ensuring sufficient supply and to provide a new focus on the safety and quality of blood products and services.

The NBA manages and coordinates Australia’s blood supply in accordance with the National Blood Agreement agreed by the Commonwealth, States and Territories. Under this agreement, the Commonwealth contributes 63 per cent of overall costs in the blood sector and the States and Territories are providing 37 per cent. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003. The Act also established a special appropriation held by the Department of Health and Ageing, under the Financial Management and Accountability Act 1997.

Details of planned activities for the year can be found in the Agency Portfolio Budget and Portfolio Additional Estimates for 2007 - 08 which have been tabled in Parliament.

Unquantifiable but material contingencies are disclosed in Note 20: Administered Contingent Liabilities .



Administered Contingenciesas at 30 June 2008

There were no quantifiable administered contingent liabilities as at 30 June 2008.

Statement of Activities Administered on Behalf of Government

The major activities of the National Blood Authority are directed towards managing national blood arrangements, ensuring sufficient supply and to provide a new focus on the safety and quality of blood products and services.

The NBA manages and coordinates Australia’s blood supply in accordance with the National Blood Agreement agreed by the Commonwealth, States and Territories. Under this agreement, the Commonwealth contributes 63 per cent of overall costs in the blood sector and the States and Territories are providing 37 per cent. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003. The Act also established a special appropriation held by the Department of Health and Ageing, under the Financial Management and Accountability Act 1997.

Details of planned activities for the year can be found in the Agency Portfolio Budget and Portfolio Additional Estimates for 2007 - 08 which have been tabled in Parliament.

Unquantifiable but material contingencies are disclosed in Note 20: Administered Contingent Liabilities .



NATIONAL BLOOD AUTHORITYNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 2008

Page

NOTE 1 Summary of Significant Accounting Policies 12NOTE 2 Events after the Balance Sheet Date 23NOTE 3 Income 24NOTE 4 Operating Expenses 25NOTE 5 Financial Assets 26NOTE 6 Non-Financial Assets 27NOTE 7 Payables 29NOTE 8 Provisions 29NOTE 9 Cash Flow Reconciliation 30NOTE 10 Senior Executive Remuneration 31NOTE 11 Remuneration of Auditors 31NOTE 12 Average Staffing Levels 31NOTE 13 Contingent Liabilities and Assets 32NOTE 14 Financial Instruments 33NOTE 15 Income Administered on Behalf of Government 35NOTE 16 Expenses Administered on Behalf of Government 35NOTE 17 Assets Administered on Behalf of Government 36NOTE 18 Liabilities Administered on Behalf of Government 36NOTE 19 Administered Reconciliation Table 37NOTE 20 Administered Contingent Liabilities and Assets 38NOTE 21 Administered Financial Instruments 39NOTE 22 Appropriations 41NOTE 23 Special Accounts 43NOTE 24 Compensation and Debt Relief 45NOTE 25 Reporting of Outcomes 46

INDEX TO THE NOTES OF THE FINANCIAL STATEMENTS

11


Page

NOTE 1 Summary of Significant Accounting Policies 12NOTE 2 Events after the Balance Sheet Date 23NOTE 3 Income 24NOTE 4 Operating Expenses 25NOTE 5 Financial Assets 26NOTE 6 Non-Financial Assets 27NOTE 7 Payables 29NOTE 8 Provisions 29NOTE 9 Cash Flow Reconciliation 30NOTE 10 Senior Executive Remuneration 31NOTE 11 Remuneration of Auditors 31NOTE 12 Average Staffing Levels 31NOTE 13 Contingent Liabilities and Assets 32NOTE 14 Financial Instruments 33NOTE 15 Income Administered on Behalf of Government 35NOTE 16 Expenses Administered on Behalf of Government 35NOTE 17 Assets Administered on Behalf of Government 36NOTE 18 Liabilities Administered on Behalf of Government 36NOTE 19 Administered Reconciliation Table 37NOTE 20 Administered Contingent Liabilities and Assets 38NOTE 21 Administered Financial Instruments 39NOTE 22 Appropriations 41NOTE 23 Special Accounts 43NOTE 24 Compensation and Debt Relief 45NOTE 25 Reporting of Outcomes 46

INDEX TO THE NOTES OF THE FINANCIAL STATEMENTS

11


NATIONAL BLOOD AUTHORITY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2008

12

NOTE 1 Summary of Significant Accounting Policies

1.1 Objectives of the National Blood Authority

The National Blood Authority (NBA) is an Australian Public Service organisation and was established on 1 July 2003 with the principal role of managing national blood arrangements, ensuring sufficient supply and providing a new focus on the quality and appropriateness of blood products. The NBA manages and coordinates Australia’s blood supply in accordance with the National Blood Agreement agreed by the Australian Government, States and Territories. Under this agreement, the Australian Government contributes 63 per cent of overall costs in the blood sector and the States and Territories provide 37 per cent. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003. This Act also established a special appropriation held by the Department of Health and Ageing, under the Financial Management and Accountability Act 1997. The Authority contributes to the Department of Health and Ageing Portfolio Outcome 13 - Acute Care, under the following outcome and output group:

Outcome Administered Items and Output Groups

Australia’s blood supply is secure and well managed.

Output Group 1 – Meet product demand through effective planning and

the management of supply arrangements.

The NBA’s activities contributing to this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the NBA in its own right. Administered activities involve the management or oversight by the NBA, on behalf of the Government, of items controlled or incurred by the Government. The continued existence of the NBA in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament and contributions from States and Territories for the NBA’s administration and programs.

1.2 Basis of Preparation of the Financial Statements

The Financial Statements and notes are required by Section 49 of the Financial Management and Accountability Act 1997 and are a General Purpose Financial Report. The Financial Statements and notes have been prepared in accordance with:

Finance Minister’s Orders (FMO’s) for reporting periods ending on or after 1 July 2007; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board

(AASB) that apply for the reporting period. The financial report has been prepared on an accrual basis and is in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.


12

NOTE 1 Summary of Significant Accounting Policies

1.1 Objectives of the National Blood Authority

The National Blood Authority (NBA) is an Australian Public Service organisation and was established on 1 July 2003 with the principal role of managing national blood arrangements, ensuring sufficient supply and providing a new focus on the quality and appropriateness of blood products. The NBA manages and coordinates Australia’s blood supply in accordance with the National Blood Agreement agreed by the Australian Government, States and Territories. Under this agreement, the Australian Government contributes 63 per cent of overall costs in the blood sector and the States and Territories provide 37 per cent. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003. This Act also established a special appropriation held by the Department of Health and Ageing, under the Financial Management and Accountability Act 1997. The Authority contributes to the Department of Health and Ageing Portfolio Outcome 13 - Acute Care, under the following outcome and output group:

Outcome Administered Items and Output Groups

Australia’s blood supply is secure and well managed.

Output Group 1 – Meet product demand through effective planning and

the management of supply arrangements.

The NBA’s activities contributing to this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the NBA in its own right. Administered activities involve the management or oversight by the NBA, on behalf of the Government, of items controlled or incurred by the Government. The continued existence of the NBA in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament and contributions from States and Territories for the NBA’s administration and programs.

1.2 Basis of Preparation of the Financial Statements

The Financial Statements and notes are required by Section 49 of the Financial Management and Accountability Act 1997 and are a General Purpose Financial Report. The Financial Statements and notes have been prepared in accordance with:

Finance Minister’s Orders (FMO’s) for reporting periods ending on or after 1 July 2007; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board

(AASB) that apply for the reporting period. The financial report has been prepared on an accrual basis and is in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.



13

1.2 Basis of Preparation of the Financial Statements (cont..) Unless an alternative treatment is specifically required by an Accounting Standard or the FMO’s, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the NBA or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 13). Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the income statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured. Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for departmental items.

1.3 Significant Accounting Judgments and Estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 Statement of Compliance

Adoption of new Australian Accounting Standard requirements No Accounting Standard has been adopted earlier than the application date as stated in the Standard. The following new Standards are applicable to the current reporting period: Financial Instrument Disclosure AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than that previously required. Associated with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports. The following new standards, amendments to standards or interpretations for the current financial year have no material financial impact on the NBA:

2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments and Erratum: Proportionate Consolidation

2007-7 Amendments to Australian Accounting Standards UIG Interpretation 11 AASB 2 – Group and Treasury Share Transactions and 2007-1 Amendments to

Australian Accounting Standards arising from AASB Interpretation 11


13

1.2 Basis of Preparation of the Financial Statements (cont..) Unless an alternative treatment is specifically required by an Accounting Standard or the FMO’s, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the NBA or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 13). Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the income statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured. Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for departmental items.

1.3 Significant Accounting Judgments and Estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 Statement of Compliance

Adoption of new Australian Accounting Standard requirements No Accounting Standard has been adopted earlier than the application date as stated in the Standard. The following new Standards are applicable to the current reporting period: Financial Instrument Disclosure AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than that previously required. Associated with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports. The following new standards, amendments to standards or interpretations for the current financial year have no material financial impact on the NBA:

2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments and Erratum: Proportionate Consolidation

2007-7 Amendments to Australian Accounting Standards UIG Interpretation 11 AASB 2 – Group and Treasury Share Transactions and 2007-1 Amendments to

Australian Accounting Standards arising from AASB Interpretation 11



14

1.4 Statement of Compliance (cont..) Future Australian Accounting Standard Requirements The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods:

AASB Interpretation 12 Service Concession Arrangements and 2007-2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12

AASB 8 Operating Segments and 2007-3 Amendments to Australian Accounting Standards arising from AASB 8

2007-6 Amendments to Australian Accounting Standards arising from AASB 123 AASB Interpretation 13 Customer Loyalty Programmes AASB Interpretation 14 AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements

and their Interaction Other The following standards and interpretations have been issued but are not applicable to the operations of the NBA:

AASB 1049 Financial Reporting of General Government Sectors by Governments AASB 1049 specifies the reporting requirements for the General Government Sector. The FMOs do not apply to this reporting or the consolidated financial statements of the Australian Government.

1.5 Revenue

Revenues from Government Amounts appropriated for departmental output appropriations for the year (less any current year additions and reductions) are recognised as revenue when the NBA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case, revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. Other Types of Revenue Revenue from the sale of goods is recognised when:

the risks and rewards of ownership have been transferred to the buyer; the seller retains no managerial involvement nor effective control over the goods; the revenue and transaction costs incurred can be reliably measured; and it is probable that the economic benefits associated with the transaction will flow to the NBA.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and the probable economic benefits with the transaction will flow to the NBA.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is no longer probable.


14

1.4 Statement of Compliance (cont..) Future Australian Accounting Standard Requirements The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods:

AASB Interpretation 12 Service Concession Arrangements and 2007-2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12

AASB 8 Operating Segments and 2007-3 Amendments to Australian Accounting Standards arising from AASB 8

2007-6 Amendments to Australian Accounting Standards arising from AASB 123 AASB Interpretation 13 Customer Loyalty Programmes AASB Interpretation 14 AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements

and their Interaction Other The following standards and interpretations have been issued but are not applicable to the operations of the NBA:

AASB 1049 Financial Reporting of General Government Sectors by Governments AASB 1049 specifies the reporting requirements for the General Government Sector. The FMOs do not apply to this reporting or the consolidated financial statements of the Australian Government.

1.5 Revenue

Revenues from Government Amounts appropriated for departmental output appropriations for the year (less any current year additions and reductions) are recognised as revenue when the NBA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case, revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. Other Types of Revenue Revenue from the sale of goods is recognised when:

the risks and rewards of ownership have been transferred to the buyer; the seller retains no managerial involvement nor effective control over the goods; the revenue and transaction costs incurred can be reliably measured; and it is probable that the economic benefits associated with the transaction will flow to the NBA.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and the probable economic benefits with the transaction will flow to the NBA.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is no longer probable.



15

1.5 Revenue (cont..) Section 31 Revenue Section 83 of the Constitution, prescribes that monies are not to be drawn down from the Treasury, except under an appropriation by law. Further, under Section 31 of the Financial Management and Accountability Act 1997, an agreement may be made with the Finance Minister which specifies the type of receipts that are not included in the Appropriation Acts, but may be deemed to be appropriated. The NBA receives monies from a number of sources, other than appropriations, and those revenues that are stipulated within the National Blood Authority Act 2003. The NBA has a Net Appropriation instrument that allows the NBA to retain and spend these receipts.

1.6 Gains

Other Resources Received Free of Charge Resources received free of charge are recognised as gains when and only when a fair value can be reliably determined and the resources would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another government agency as a consequence of a restructuring of administrative arrangements. Resources received free of charge are recorded as either revenue or gains depending on their nature. Sale of Assets Gains from the disposal of non-current assets are recognised when control of the assets has passed to the buyer.

1.7 Transactions with the Government as Owner

Restructuring of Administrative Arrangements Net assets received from or relinquished to another Australian Government agency or Authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year.


15

1.5 Revenue (cont..) Section 31 Revenue Section 83 of the Constitution, prescribes that monies are not to be drawn down from the Treasury, except under an appropriation by law. Further, under Section 31 of the Financial Management and Accountability Act 1997, an agreement may be made with the Finance Minister which specifies the type of receipts that are not included in the Appropriation Acts, but may be deemed to be appropriated. The NBA receives monies from a number of sources, other than appropriations, and those revenues that are stipulated within the National Blood Authority Act 2003. The NBA has a Net Appropriation instrument that allows the NBA to retain and spend these receipts.

1.6 Gains

Other Resources Received Free of Charge Resources received free of charge are recognised as gains when and only when a fair value can be reliably determined and the resources would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another government agency as a consequence of a restructuring of administrative arrangements. Resources received free of charge are recorded as either revenue or gains depending on their nature. Sale of Assets Gains from the disposal of non-current assets are recognised when control of the assets has passed to the buyer.

1.7 Transactions with the Government as Owner

Restructuring of Administrative Arrangements Net assets received from or relinquished to another Australian Government agency or Authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year.



16

1.8 Employee Benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months of balance date are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Leave The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the NBA is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration, including the NBA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2008. In determining the present value of the liability, the NBA has taken into account attrition rates and pay increases through promotion and inflation. Superannuation Staff of the NBA are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS Accumulation Plan (PSSap), the Australian Government Employee Superannuation Trust (AGEST) or other non-government superannuation funds. The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSap, AGEST and the non-government superannuation funds are defined contribution schemes. From 1 July 2005, new employees are eligible to join the PSSap scheme. The NBA makes employer contributions to the employee superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the NBA’s employees. The NBA accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation as an administered item.


16

1.8 Employee Benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months of balance date are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date. Leave The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the NBA is estimated to be less than the annual entitlement for sick leave. The leave liabilities are calculated on the basis of employees’ remuneration, including the NBA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2008. In determining the present value of the liability, the NBA has taken into account attrition rates and pay increases through promotion and inflation. Superannuation Staff of the NBA are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS Accumulation Plan (PSSap), the Australian Government Employee Superannuation Trust (AGEST) or other non-government superannuation funds. The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSap, AGEST and the non-government superannuation funds are defined contribution schemes. From 1 July 2005, new employees are eligible to join the PSSap scheme. The NBA makes employer contributions to the employee superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the NBA’s employees. The NBA accounts for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation as an administered item.



17

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. The NBA has no finance leases as at 30 June 2008. Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

1.10 Cash

Cash includes notes and coins held and any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.11 Financial Assets

The NBA classifies its financial assets as loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’. Effective Interest Method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis. Loans and Receivables Trade Receivables, appropriations and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. They are included in current assets and are measured at amortised cost using the effective interest method less impairment. Impairment of Financial Assets Financial assets are assessed for impairment at each balance date.

Financial assets held at amortised cost. If there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the income statement.


17

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. The NBA has no finance leases as at 30 June 2008. Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

1.10 Cash

Cash includes notes and coins held and any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.11 Financial Assets

The NBA classifies its financial assets as loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’. Effective Interest Method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis. Loans and Receivables Trade Receivables, appropriations and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. They are included in current assets and are measured at amortised cost using the effective interest method less impairment. Impairment of Financial Assets Financial assets are assessed for impairment at each balance date.

Financial assets held at amortised cost. If there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the income statement.



18

1.12 Financial Liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Supplier and Other Payables Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.13 Contingent Liabilities and Contingent Assets

Contingent Liabilities and Contingent Assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.14 Acquisition of Assets

Assets are recorded at cost on acquisition, except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor Agency’s accounts immediately prior to the restructuring.

1.15 Property, Plant and Equipment (PP&E)

Asset Recognition Threshold Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than the thresholds listed below for each class of asset, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Asset class Recognition Threshold Infrastructure, Plant and Equipment $2,000 Purchased Software $5,000 Leasehold improvements $10,000 Internally Developed Software $50,000

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the NBA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the NBA’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.


18

1.12 Financial Liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Supplier and Other Payables Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.13 Contingent Liabilities and Contingent Assets

Contingent Liabilities and Contingent Assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.14 Acquisition of Assets

Assets are recorded at cost on acquisition, except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor Agency’s accounts immediately prior to the restructuring.

1.15 Property, Plant and Equipment (PP&E)

Asset Recognition Threshold Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than the thresholds listed below for each class of asset, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Asset class Recognition Threshold Infrastructure, Plant and Equipment $2,000 Purchased Software $5,000 Leasehold improvements $10,000 Internally Developed Software $50,000

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the NBA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the NBA’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.



19

1.15 Property, Plant and Equipment (PP&E) (cont..) Revaluations Basis All valuations are conducted by an independent qualified valuer and are undertaken by the Australian Valuation Office. Fair values for each class of asset are determined as shown below.

Asset class Fair value measured at: Leasehold improvements Depreciated replacement cost Infrastructure, plant & equipment Market selling price

Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through operating result. Revaluation decrements for a class of assets are recognised directly through operating result except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Frequency An assessment is undertaken annually by the NBA to ensure that asset carrying amounts do not materially differ from fair value. The Australian Valuation Office has advised the NBA that there is no material difference between the current carrying amount and the fair value as at 30 June 2008. Depreciation Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NBA using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset class 2007 - 08 2006 - 07 Infrastructure, Plant and Equipment 3 to 7 years 3 to 7 years Leasehold improvements Lease term Lease term

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 4C.


19

1.15 Property, Plant and Equipment (PP&E) (cont..) Revaluations Basis All valuations are conducted by an independent qualified valuer and are undertaken by the Australian Valuation Office. Fair values for each class of asset are determined as shown below.

Asset class Fair value measured at: Leasehold improvements Depreciated replacement cost Infrastructure, plant & equipment Market selling price

Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through operating result. Revaluation decrements for a class of assets are recognised directly through operating result except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Frequency An assessment is undertaken annually by the NBA to ensure that asset carrying amounts do not materially differ from fair value. The Australian Valuation Office has advised the NBA that there is no material difference between the current carrying amount and the fair value as at 30 June 2008. Depreciation Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NBA using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset class 2007 - 08 2006 - 07 Infrastructure, Plant and Equipment 3 to 7 years 3 to 7 years Leasehold improvements Lease term Lease term

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 4C.



20

Capitalisation In the prior year an amount of $241,979 related to the purchase of infrastructure, plant and equipment was recorded as an expense when it should have been capitalised. This has been corrected in the current year by means of an adjustment through retained earnings. This was an isolated instance which was an error in accounting treatment in the prior year.

1.16 Impairment of Non-Current Assets

All assets were assessed for impairment at 30 June 2008. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the NBA were deprived of the asset, its value in use is taken to be its depreciated replacement cost. No indicators of impairment were found for assets at fair value.

1.17 Intangibles

The NBA’s intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the NBA’s software are:

Type 2007 - 08 2006 - 07 Purchased software 3 years 3 years Internally developed software 3 years 3 years

All software assets are assessed for indications of impairment at each balance date. As at 30 June 2008 there were no indicators of impairment of intangibles.

1.18 Taxation

The NBA is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST). Revenue, expenses and assets are recognised net of GST, except:

where the amount of the GST incurred is not recoverable from the Australian Taxation Office; and for receivables and payables.


20

Capitalisation In the prior year an amount of $241,979 related to the purchase of infrastructure, plant and equipment was recorded as an expense when it should have been capitalised. This has been corrected in the current year by means of an adjustment through retained earnings. This was an isolated instance which was an error in accounting treatment in the prior year.

1.16 Impairment of Non-Current Assets

All assets were assessed for impairment at 30 June 2008. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the NBA were deprived of the asset, its value in use is taken to be its depreciated replacement cost. No indicators of impairment were found for assets at fair value.

1.17 Intangibles

The NBA’s intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the NBA’s software are:

Type 2007 - 08 2006 - 07 Purchased software 3 years 3 years Internally developed software 3 years 3 years

All software assets are assessed for indications of impairment at each balance date. As at 30 June 2008 there were no indicators of impairment of intangibles.

1.18 Taxation

The NBA is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST). Revenue, expenses and assets are recognised net of GST, except:

where the amount of the GST incurred is not recoverable from the Australian Taxation Office; and for receivables and payables.



21

1.19 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards. Administered Cash Transfers to and from Official Public Account Revenue collected by the NBA for use by the Government rather than the NBA is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the NBA on behalf of the Government and reported as such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 19. The Schedule of Administered Items largely reflects the Government’s transactions, through the NBA, with parties outside the Government. Revenue All administered revenues are revenues relating to the course of ordinary activities performed by the NBA on behalf of the Australian Government. Administered fee revenue is recognised when access occurs. Collectability of debts is reviewed at balance date. Allowances are made when collection of the debt is judged to be less rather than more likely. Amounts appropriated during the year for administered interest are recognised in the Balance Sheet. Grants Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied. Unearned Income In the prior year an amount of $2,002,440 related to unearned income from the Commonwealth was recorded as unearned income from the States & Territories. In the current year, the comparative figure has been adjusted accordingly. This was an isolated instance which was an error in reporting in the prior year. Inventories of Blood and Blood Related Products The Australian Government controls the National Reserve of Blood and Blood Related Products (the “Reserve”). There are three significant input costs to the Reserve: Collection costs of raw plasma product provided by the Australian Red Cross Blood Service (ARCBS); Purchase costs paid to CSL Limited (CSL) for the plasma product; and Purchase costs paid to other suppliers for blood related products.

Since the establishment of the NBA, processes have been put in place that allow for the collection of data to enable measurement of these costs. A costing methodology has been agreed and will be reviewed annually to ensure reliability and appropriateness.


21

1.19 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards. Administered Cash Transfers to and from Official Public Account Revenue collected by the NBA for use by the Government rather than the NBA is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the NBA on behalf of the Government and reported as such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 19. The Schedule of Administered Items largely reflects the Government’s transactions, through the NBA, with parties outside the Government. Revenue All administered revenues are revenues relating to the course of ordinary activities performed by the NBA on behalf of the Australian Government. Administered fee revenue is recognised when access occurs. Collectability of debts is reviewed at balance date. Allowances are made when collection of the debt is judged to be less rather than more likely. Amounts appropriated during the year for administered interest are recognised in the Balance Sheet. Grants Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied. Unearned Income In the prior year an amount of $2,002,440 related to unearned income from the Commonwealth was recorded as unearned income from the States & Territories. In the current year, the comparative figure has been adjusted accordingly. This was an isolated instance which was an error in reporting in the prior year. Inventories of Blood and Blood Related Products The Australian Government controls the National Reserve of Blood and Blood Related Products (the “Reserve”). There are three significant input costs to the Reserve: Collection costs of raw plasma product provided by the Australian Red Cross Blood Service (ARCBS); Purchase costs paid to CSL Limited (CSL) for the plasma product; and Purchase costs paid to other suppliers for blood related products.

Since the establishment of the NBA, processes have been put in place that allow for the collection of data to enable measurement of these costs. A costing methodology has been agreed and will be reviewed annually to ensure reliability and appropriateness.



22

1.19 Reporting of Administered Activities (cont..) The NBA negotiated and implemented new arrangements with CSL in December 2004. These arrangements formalised the control of an inventory buffer, known as Post Payment Inventory of Blood Products (“PoPI”), held at CSL for use by governments. The Australian Government now controls PoPI and from 2004-05 it has been disclosed in the financial statements for the NBA. There are two significant input costs to PoPI: Collection costs of raw plasma product provided by the ARCBS; and Purchase costs paid to CSL Ltd for the plasma product.

The NBA negotiated and implemented new arrangements with the ARCBS in August 2006. These arrangements formalised the control of the inventory held by ARCBS on behalf of the NBA for distribution to approved recipients. The Australian Government now controls ARCBS inventory and from 2006-07 it has been disclosed in the financial statements for the NBA. There are three significant input costs to ARCBS Inventory: Collection costs of raw plasma product provided by the ARCBS; Purchase costs paid to CSL Ltd for the plasma product; and Purchase costs paid to other suppliers for blood related products.

Inventories are valued at the lower of cost and replacement cost per the requirements of Accounting Standard AASB 102. A costing methodology has been agreed and will be reviewed annually to ensure reliability and appropriateness. Movements in the Reserve, PoPI and ARCBS are funded from the Australian Government and State and Territories as per the National Blood Agreement. National Managed Fund The National Managed Fund was established to manage the liability risks of the ARCBS in relation to the provision of blood and blood products. The National Managed Fund was reported in 2003-04 by the Department of Health and Ageing under “Services for Other Governments and Non-Departmental Bodies Special Account”. The NBA now manages this fund on behalf of the Australian Government and States and Territories. To facilitate the transfer of the fund to the NBA a special account under Section 20 of the Financial Management and Accountability (FMA) Act 1997 was established, and this fund was transferred to the NBA for reporting. The Fund came into effect on 1 July 2000 and to date, no claims have been made against the fund. The balance of the fund as at 30 June 2008 is $51,817,761. Refer to Note 23. Indemnities The maximum amounts payable under the indemnities given is disclosed in the Schedule of Administered Items – Contingencies. At the time of completion of the Financial Statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.


22

1.19 Reporting of Administered Activities (cont..) The NBA negotiated and implemented new arrangements with CSL in December 2004. These arrangements formalised the control of an inventory buffer, known as Post Payment Inventory of Blood Products (“PoPI”), held at CSL for use by governments. The Australian Government now controls PoPI and from 2004-05 it has been disclosed in the financial statements for the NBA. There are two significant input costs to PoPI: Collection costs of raw plasma product provided by the ARCBS; and Purchase costs paid to CSL Ltd for the plasma product.

The NBA negotiated and implemented new arrangements with the ARCBS in August 2006. These arrangements formalised the control of the inventory held by ARCBS on behalf of the NBA for distribution to approved recipients. The Australian Government now controls ARCBS inventory and from 2006-07 it has been disclosed in the financial statements for the NBA. There are three significant input costs to ARCBS Inventory: Collection costs of raw plasma product provided by the ARCBS; Purchase costs paid to CSL Ltd for the plasma product; and Purchase costs paid to other suppliers for blood related products.

Inventories are valued at the lower of cost and replacement cost per the requirements of Accounting Standard AASB 102. A costing methodology has been agreed and will be reviewed annually to ensure reliability and appropriateness. Movements in the Reserve, PoPI and ARCBS are funded from the Australian Government and State and Territories as per the National Blood Agreement. National Managed Fund The National Managed Fund was established to manage the liability risks of the ARCBS in relation to the provision of blood and blood products. The National Managed Fund was reported in 2003-04 by the Department of Health and Ageing under “Services for Other Governments and Non-Departmental Bodies Special Account”. The NBA now manages this fund on behalf of the Australian Government and States and Territories. To facilitate the transfer of the fund to the NBA a special account under Section 20 of the Financial Management and Accountability (FMA) Act 1997 was established, and this fund was transferred to the NBA for reporting. The Fund came into effect on 1 July 2000 and to date, no claims have been made against the fund. The balance of the fund as at 30 June 2008 is $51,817,761. Refer to Note 23. Indemnities The maximum amounts payable under the indemnities given is disclosed in the Schedule of Administered Items – Contingencies. At the time of completion of the Financial Statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.



NOTE 2 Events after the Balance Sheet Date

There were no significant events occurring after 30 June 2008.

23


NOTE 2 Events after the Balance Sheet Date

There were no significant events occurring after 30 June 2008.

23



2008 2007$’000 $’000

NOTE 3 Income

Revenues

Note 3A - Revenue from GovernmentAppropriations:Departmental outputs 5 993 6 065

Total revenue from government 5 993 6 065

Note 3B - Sale of goods and rendering of servicesRendering of services 4 294 4 064

Total sale of goods and rendering of services 4 294 4 064

Rendering of services to:Related entities 634 347 External entities 3 660 3 717

Total rendering of services 4 294 4 064

Gains

Note 3C - Other gains

Resources received free of charge 114 96

24


2008 2007$’000 $’000

NOTE 3 Income

Revenues

Note 3A - Revenue from GovernmentAppropriations:Departmental outputs 5 993 6 065

Total revenue from government 5 993 6 065

Note 3B - Sale of goods and rendering of servicesRendering of services 4 294 4 064

Total sale of goods and rendering of services 4 294 4 064

Rendering of services to:Related entities 634 347 External entities 3 660 3 717

Total rendering of services 4 294 4 064

Gains

Note 3C - Other gains

Resources received free of charge 114 96

24



2008 2007$’000 $’000

NOTE 4 Operating Expenses

Note 4A - Employee benefitsWages and salaries 3 514 3 456 Superannuation:

Defined contribution plans 222 181 Defined benefit plans 426 441

Leave and other entitlements 787 768 Other employee expenses 877 866

Total employee expenses 5 826 5 712

Note 4B - SuppliersProvision of goods - external entities 196 151 Rendering of services - related entities 161 183 Rendering of services - external entities 1 872 2 197 Operating lease rentals - minimum lease payments 354 332 Workers compensation premiums 38 78

Total supplier expenses 2 621 2 941

Note 4C - Depreciation and amortisationThe aggregate amounts of depreciation or amortisation expensed during the reporting periodfor each class of depreciable asset are as follows:

(i) DepreciationInfrastructure, plant and equipment 339 99 Leasehold improvements 99 83

Total Depreciation 438 182

(ii) AmortisationIntangibles - Computer software 116 102

Total depreciation and amortisation 554 284

No depreciation or amortisation was allocated to the carrying amounts of other assets

Note 4D - Write-down and impairment of assets

Asset Write-downs from:Impairment of infrastructure, plant and equipment 20 75

Revaluation Decrements - non-financial assets:Leasehold improvements - 31 Infrastructure, plant and equipment - 5

Total write-down and impairment of assets 20 111

Note 4E - Losses from asset salesInfrastructure, plant and equipmentProceeds from sale - ( 18) Carrying value of assets sold - 29

Total losses from asset sales - 11

25


2008 2007$’000 $’000

NOTE 4 Operating Expenses

Note 4A - Employee benefitsWages and salaries 3 514 3 456 Superannuation:

Defined contribution plans 222 181 Defined benefit plans 426 441

Leave and other entitlements 787 768 Other employee expenses 877 866

Total employee expenses 5 826 5 712

Note 4B - SuppliersProvision of goods - external entities 196 151 Rendering of services - related entities 161 183 Rendering of services - external entities 1 872 2 197 Operating lease rentals - minimum lease payments 354 332 Workers compensation premiums 38 78

Total supplier expenses 2 621 2 941

Note 4C - Depreciation and amortisationThe aggregate amounts of depreciation or amortisation expensed during the reporting periodfor each class of depreciable asset are as follows:

(i) DepreciationInfrastructure, plant and equipment 339 99 Leasehold improvements 99 83

Total Depreciation 438 182

(ii) AmortisationIntangibles - Computer software 116 102

Total depreciation and amortisation 554 284

No depreciation or amortisation was allocated to the carrying amounts of other assets

Note 4D - Write-down and impairment of assets

Asset Write-downs from:Impairment of infrastructure, plant and equipment 20 75

Revaluation Decrements - non-financial assets:Leasehold improvements - 31 Infrastructure, plant and equipment - 5

Total write-down and impairment of assets 20 111

Note 4E - Losses from asset salesInfrastructure, plant and equipmentProceeds from sale - ( 18) Carrying value of assets sold - 29

Total losses from asset sales - 11

25



2008 2007$’000 $’000

NOTE 5 Financial Assets

Note 5A - CashCash at bank - Special Account 63 53

Total cash 63 53

Note 5B - Trade and other receivables

Goods and services 250 240

GST receivable from ATO 116 103 Appropriation receivable for existing outputs - 317 Special Account - cash held in the OPA 8 886 8 582

Total receivables (net) 9 252 9 242

All receivables are current assets. No provision fo doubtful debts is required.

All receivables are with entities external to the entity. Credit terms are net 30 days (2006-07: 30 days).

Receivables (gross) are aged as follows:Not overdue 8 886 8 899 Overdue by less than 30 days 366 343

Total receivables (gross) 9 252 9 242

26


2008 2007$’000 $’000

NOTE 5 Financial Assets

Note 5A - CashCash at bank - Special Account 63 53

Total cash 63 53

Note 5B - Trade and other receivables

Goods and services 250 240

GST receivable from ATO 116 103 Appropriation receivable for existing outputs - 317 Special Account - cash held in the OPA 8 886 8 582


All receivables are current assets. No provision fo doubtful debts is required.

All receivables are with entities external to the entity. Credit terms are net 30 days (2006-07: 30 days).

Receivables (gross) are aged as follows:Not overdue 8 886 8 899 Overdue by less than 30 days 366 343


26



2008 2007$’000 $’000

NOTE 6 Non-Financial Assets

Note 6A - Leasehold improvements

- at fair value 243 228 - accumulated depreciation ( 99) -

Total leasehold improvements (non-current) 144 228

No indicators of impairment were found for leasehold improvements.

Note 6B - Infrastructure, plant and equipment

- gross carrying value (at fair value) 1 061 241 - accumulated depreciation ( 335) ( 1)

Total infrastructure, plant and equipment (non-current) 726 240

All revaluations are conducted in accordance with the revaluation policy stated at Note 1.

No revaluation decrements for leasehold improvements (2007: decrement of $31,000) or for infrastructure,plant and equipment (2007: decrement of $11,000) were credited to the asset revaluation reserve by assetclass and included in the equity section of the balance sheet; no increments/decrements were expensed.

No indicators of impairment were found for infrastructure, plant and equipment.

Note 6C - Intangibles

Computer software - at costInternally developed - in progress 1 437 766 Internally developed - in use 39 39 Purchased - in use 533 204

Total computer software 2 009 1 009 Accumulated amortisation - internally developed ( 39) ( 39) Accumulated amortisation - purchased ( 281) ( 165)

Total accumulated amortisation ( 320) ( 204)

Total intangibles (non-current) 1 689 805

No indicators of impairment were found for intangible assets.

27


2008 2007$’000 $’000

NOTE 6 Non-Financial Assets

Note 6A - Leasehold improvements

- at fair value 243 228 - accumulated depreciation ( 99) -

Total leasehold improvements (non-current) 144 228

No indicators of impairment were found for leasehold improvements.

Note 6B - Infrastructure, plant and equipment

- gross carrying value (at fair value) 1 061 241 - accumulated depreciation ( 335) ( 1)

Total infrastructure, plant and equipment (non-current) 726 240

All revaluations are conducted in accordance with the revaluation policy stated at Note 1.

No revaluation decrements for leasehold improvements (2007: decrement of $31,000) or for infrastructure,plant and equipment (2007: decrement of $11,000) were credited to the asset revaluation reserve by assetclass and included in the equity section of the balance sheet; no increments/decrements were expensed.

No indicators of impairment were found for infrastructure, plant and equipment.

Note 6C - Intangibles

Computer software - at costInternally developed - in progress 1 437 766 Internally developed - in use 39 39 Purchased - in use 533 204

Total computer software 2 009 1 009 Accumulated amortisation - internally developed ( 39) ( 39) Accumulated amortisation - purchased ( 281) ( 165)

Total accumulated amortisation ( 320) ( 204)

Total intangibles (non-current) 1 689 805

No indicators of impairment were found for intangible assets.

27



NOTE 6 Non-Financial Assets (cont..)

Note 6D - Analysis of property, plant and equipment and intangibles

Leasehold improvements

Infrastructureplant and

equipment

Intangibles - Computer software internally

developed

Intangibles - Computer software purchased

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

As at 1 July 2007

Gross book value 228 241 39 204

Accumulated depreciation/amortisation - ( 1) ( 39) ( 165) Net book value 1 July 2007 228 240 - 39

Additions:

By purchase/internally developed 15 845 - 329

- - - -

Depreciation/amortisation expense ( 99) ( 339) - ( 116)

Disposals:

Other disposals - ( 20) - -

Net book value 30 June 2008 144 726 - 252

Net book value as of 30 June 2008 represented by:

Gross book value 243 1 061 39 533

Accumulated depreciation/amortisation ( 99) ( 335) ( 39) ( 281)

Closing Net book value 144 726 - 252

Internally developed software - in progress - - 1 437 -

Total of all assets 144 726 1 437 252



equipment


developed


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

As at 1 July 2006


Accumulated depreciation/amortisation - - ( 32) ( 175) Net book value 1 July 2006 324 317 7 113

Additions:


( 31) ( 11) - -

Depreciation/amortisation expense ( 83) ( 99) ( 7) ( 95)

Disposals:

Other disposals - ( 103) - ( 1)




Accumulated depreciation/amortisation - ( 1) ( 39) ( 165)


Internally developed software - in progress - - 766 -

Total of all assets 228 240 766 39

Table A - Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles (2007-08)

Item

Revaluations and impairments through equity

Table B - Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles (2006-07)

Item


28



Note 6D - Analysis of property, plant and equipment and intangibles



equipment


developed


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

As at 1 July 2007


Accumulated depreciation/amortisation - ( 1) ( 39) ( 165) Net book value 1 July 2007 228 240 - 39

Additions:


- - - -

Depreciation/amortisation expense ( 99) ( 339) - ( 116)

Disposals:

Other disposals - ( 20) - -



Gross book value 243 1 061 39 533

Accumulated depreciation/amortisation ( 99) ( 335) ( 39) ( 281)


Internally developed software - in progress - - 1 437 -

Total of all assets 144 726 1 437 252



equipment


developed


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

As at 1 July 2006


Accumulated depreciation/amortisation - - ( 32) ( 175) Net book value 1 July 2006 324 317 7 113

Additions:


( 31) ( 11) - -

Depreciation/amortisation expense ( 83) ( 99) ( 7) ( 95)

Disposals:

Other disposals - ( 103) - ( 1)




Accumulated depreciation/amortisation - ( 1) ( 39) ( 165)


Internally developed software - in progress - - 766 -

Total of all assets 228 240 766 39

Table A - Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles (2007-08)

Item


Table B - Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles (2006-07)

Item


28



2008 2007$’000 $’000


Note 6E - Other non-financial assets

Prepayments 67 17

All other non-financial assets are current assets.No indicators of impairment were found for other non-financial assets.

NOTE 7 Payables

Note 7A - SuppliersTrade creditors 999 659

Total supplier payables 999 659

All supplier payables are current liabilities.Settlement is usually made net 30 days from receipt of invoice.

Note 7B - Other payablesUnearned revenue from States and Territories 2 892 2 996 Unearned revenue - S31 receipts 150 695

Total other payables 3 042 3 691

All other payables are current liabilities.

NOTE 8 Provisions

Note 8 - Employee provisionsSalaries and wages 55 39 Leave 957 930

Total employee provisions 1 012 969

Employee provisions are represented by:

Current 886 690 Non-current 126 279


The classification of current employee provisions includes amounts for which there is not an unconditional right todefer settlement by one year, hence in the case of employee provisions the above classification does not representthe amount expected to be settled within one year of reporting date. Employee provisions expected to be settled intwelve months from the reporting date is $283,458 (2007: $303,435), and in excess of one year $185,396(2007: $149,901).

29


2008 2007$’000 $’000


Note 6E - Other non-financial assets

Prepayments 67 17

All other non-financial assets are current assets.No indicators of impairment were found for other non-financial assets.

NOTE 7 Payables

Note 7A - SuppliersTrade creditors 999 659

Total supplier payables 999 659

All supplier payables are current liabilities.Settlement is usually made net 30 days from receipt of invoice.

Note 7B - Other payablesUnearned revenue from States and Territories 2 892 2 996 Unearned revenue - S31 receipts 150 695

Total other payables 3 042 3 691

All other payables are current liabilities.

NOTE 8 Provisions

Note 8 - Employee provisionsSalaries and wages 55 39 Leave 957 930


Employee provisions are represented by:

Current 886 690 Non-current 126 279


The classification of current employee provisions includes amounts for which there is not an unconditional right todefer settlement by one year, hence in the case of employee provisions the above classification does not representthe amount expected to be settled within one year of reporting date. Employee provisions expected to be settled intwelve months from the reporting date is $283,458 (2007: $303,435), and in excess of one year $185,396(2007: $149,901).

29



2008 2007$’000 $’000

NOTE 9 Cash Flow Reconciliation

Reconciliation of cash as per Balance Sheet to Cash Flow Statement

Report cash as per:

Cash Flow Statement 63 53 Balance Sheet 63 53

Difference - -

Reconciliation of operating result to net cash from operating activities:Operating result 1 380 1 166 Depreciation/amortisation 554 284 Revaluation reserve increment - ( 6) Adjustment for errors in retained earnings 242 - Gains on disposal of assets - -

Changes in assets and liabilities:Decrease/(increase) in receivables 15 ( 227) Decrease/(increase) in non-financial assets 89 154 Increase/(decrease) in employee liabilities 43 69 Increase/(decrease) in supplier liabilities 48 ( 23) Increase/(decrease) in other liabilities ( 649) 208

Net cash from operating activities 1 722 1 625

30


2008 2007$’000 $’000

NOTE 9 Cash Flow Reconciliation

Reconciliation of cash as per Balance Sheet to Cash Flow Statement

Report cash as per:

Cash Flow Statement 63 53 Balance Sheet 63 53

Difference - -

Reconciliation of operating result to net cash from operating activities:Operating result 1 380 1 166 Depreciation/amortisation 554 284 Revaluation reserve increment - ( 6) Adjustment for errors in retained earnings 242 - Gains on disposal of assets - -

Changes in assets and liabilities:Decrease/(increase) in receivables 15 ( 227) Decrease/(increase) in non-financial assets 89 154 Increase/(decrease) in employee liabilities 43 69 Increase/(decrease) in supplier liabilities 48 ( 23) Increase/(decrease) in other liabilities ( 649) 208

Net cash from operating activities 1 722 1 625

30



NOTE 10 Senior Executive Remuneration

2008 2007Number Number

The number of senior executives who received or were due to receive total remuneration of $130,000 or more:

$130 000 to 144 999 - 1 $160 000 to 174 999 - 1 $175 000 to 189 999 3 - $190 000 to $204 999 - 1 $220 000 to $234 999 1 - $280 000 to $294 999 1 1

5 4

$ $

1 070 842 799 496

- -

2008 2007NOTE 11 Remuneration of Auditors $’000 $’000

Financial statement audit services are provided free of charge to the NBA.

The fair value of the services provided was: 114 96

114 96 No other services were provided by the Auditor-General.

2008 2007NOTE 12 Average Staffing Levels Number Number

The average staffing levels for the NBA at balance date were: 49 50

In 2007-08 some executives were employed for part of the year due to staff leaving.

The aggregate amount of total monies expended and accrued by the organisation relevant to the employment of senior executives shown above.

This includes salaries, employer superannuation contributions to CSS, PSS and PSSap, accrued leave and performance bonuses.The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above.

31


NOTE 10 Senior Executive Remuneration

2008 2007Number Number

The number of senior executives who received or were due to receive total remuneration of $130,000 or more:

$130 000 to 144 999 - 1 $160 000 to 174 999 - 1 $175 000 to 189 999 3 - $190 000 to $204 999 - 1 $220 000 to $234 999 1 - $280 000 to $294 999 1 1

5 4

$ $

1 070 842 799 496

- -

2008 2007NOTE 11 Remuneration of Auditors $’000 $’000

Financial statement audit services are provided free of charge to the NBA.

The fair value of the services provided was: 114 96

114 96 No other services were provided by the Auditor-General.

2008 2007NOTE 12 Average Staffing Levels Number Number

The average staffing levels for the NBA at balance date were: 49 50

In 2007-08 some executives were employed for part of the year due to staff leaving.

The aggregate amount of total monies expended and accrued by the organisation relevant to the employment of senior executives shown above.

This includes salaries, employer superannuation contributions to CSS, PSS and PSSap, accrued leave and performance bonuses.The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above.

31



NOTE 13 Contingent Liabilities and Assets


Unquantifiable Contingencies

Remote Contingencies

The Schedule of Contingencies in the Financial Report reports a contingent asset as at 30 June 2008 in respect of an outstanding insurance claim with Comcover for damage to the NBA premises of $170,129. The NBA is expecting that the claim will be finalised in the 2008-09 financial year. The estimate is based on the full amount of the claim submitted by the NBA to the insurance assessors.

There are no unquantifiable contingent assets or liabilities in this reporting period.

The Australian Government has indemnified the lessor of the National Blood Authority’s premises for negligent acts committed by the National Blood Authority up to the value of $1,000,000.

32


NOTE 13 Contingent Liabilities and Assets


Unquantifiable Contingencies

Remote Contingencies

The Schedule of Contingencies in the Financial Report reports a contingent asset as at 30 June 2008 in respect of an outstanding insurance claim with Comcover for damage to the NBA premises of $170,129. The NBA is expecting that the claim will be finalised in the 2008-09 financial year. The estimate is based on the full amount of the claim submitted by the NBA to the insurance assessors.

There are no unquantifiable contingent assets or liabilities in this reporting period.

The Australian Government has indemnified the lessor of the National Blood Authority’s premises for negligent acts committed by the National Blood Authority up to the value of $1,000,000.

32



NOTE 14 Financial Instruments

NOTE 14A Terms, conditions and accounting policies

Notes

5A

5B

7A

2008 2007$’000 $’000

NOTE 14B Categories of Financial Instruments

Financial AssetsLoans and receivablesCash at Bank 63 53 Trade and other receivables 366 343

Carrying amount of financial assets 429 396

Financial LiabilitiesAt amortised cost:

Trade and other creditors 999 659

Carrying amount of financial liabilities 999 659

Financial Liabilities

Trade and other creditors Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent the goods and services have been received (and irrespective of having been invoiced).

Receivables for goods and services

Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.

Nature of underlying instrument (including significant terms and conditions affecting the amount, timing and certainty of cash flow)

Monies in the Authority's bank accounts were from States and Territories and the Australian Government. Government contributions were swept to the Official Public Account and held as a special account.

All receivables are with States and Territories and the Australian Government. Credit terms are net 30 days.

These receivables are recognised at the nominal amounts due less any provision for bad or doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collection of debt is judged to be less rather than more likely.

Financial Instrument

Financial Assets

Cash

Accounting Policies and Methods (including recognition criteria and measurement basis)

Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.

Deposits are recognised at their nominal amounts.

33


NOTE 14 Financial Instruments


Notes

5A

5B

7A

2008 2007$’000 $’000


Financial AssetsLoans and receivablesCash at Bank 63 53 Trade and other receivables 366 343

Carrying amount of financial assets 429 396

Financial LiabilitiesAt amortised cost:

Trade and other creditors 999 659

Carrying amount of financial liabilities 999 659






Monies in the Authority's bank accounts were from States and Territories and the Australian Government. Government contributions were swept to the Official Public Account and held as a special account.




Financial Assets

Cash




33



NOTE 14 Financial Instruments (cont..)

Note 14C Fair value of financial instruments

Financial instruments

The fair values of all financial instruments approximate their carrying amounts.

Financial assets

The fair values of all monetary financial assets approximate their carrying amounts.

Financial liabilities

The fair values of all monetary financial liabilities approximate their carrying amounts.All financial liabilities are current, therefore a maturity analysis is not required.

Note 14D Credit Risk

The NBA is exposed to minimal credit risk as loans and receivables are cash and trade receivables.The maximum exposure to credit risk at reporting date in relation to each class of recognisedfinancial assets is the carrying amount of those assets as indicated in the Balance Sheet.

The NBA has no significant exposures to any concentrations of credit risk.

Note 14E Liquidity Risk

The NBA's financial liabilities consist of trade and other creditors. The exposure to liquidity risk is based on the notion that the NBA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the NBA (e.g. Advance to the Finance Minister) and internal policies and procedures put in place toensure there are appropriate resources to meet its financial obligations.

Note 14F Market Risk

The NBA holds basic financial instruments that do not expose it to certain market risks. The NBAis not exposed to 'Interest rate risk", 'Currency risk' or "Other price risk'.

34


NOTE 14 Financial Instruments (cont..)


Financial instruments

The fair values of all financial instruments approximate their carrying amounts.

Financial assets



The fair values of all monetary financial liabilities approximate their carrying amounts.All financial liabilities are current, therefore a maturity analysis is not required.





The NBA's financial liabilities consist of trade and other creditors. The exposure to liquidity risk is based on the notion that the NBA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the NBA (e.g. Advance to the Finance Minister) and internal policies and procedures put in place toensure there are appropriate resources to meet its financial obligations.

Note 14F Market Risk

The NBA holds basic financial instruments that do not expose it to certain market risks. The NBAis not exposed to 'Interest rate risk", 'Currency risk' or "Other price risk'.

34



2008 2007NOTE 15 Income Administered on Behalf of Government $’000 $’000

Revenue

State and Territory contributions 268 500 223 957 Contributions of assets - 22 990

Total income administered on behalf of Government 268 500 246 947

NOTE 16 Expenses Administered on Behalf of Government

Note 16A: GrantsPrivate sector - non-profit organisations 385 029 305 770

385 029 305 770

Note 16B: SuppliersProvision of goods and services - external parties 340 322 303 080

340 322 303 080

Total grants

The nature of the grant is a Deed for the provision of services relating to blood and blood related products.

Total suppliers

35


2008 2007NOTE 15 Income Administered on Behalf of Government $’000 $’000

Revenue

State and Territory contributions 268 500 223 957 Contributions of assets - 22 990

Total income administered on behalf of Government 268 500 246 947

NOTE 16 Expenses Administered on Behalf of Government

Note 16A: GrantsPrivate sector - non-profit organisations 385 029 305 770

385 029 305 770

Note 16B: SuppliersProvision of goods and services - external parties 340 322 303 080

340 322 303 080

Total grants

The nature of the grant is a Deed for the provision of services relating to blood and blood related products.

Total suppliers

35



2008 2007NOTE 17 Assets Administered on Behalf of Government $’000 $’000

Financial assets

Note 17A - ReceivablesGoods and services receivable 1 605 515 GST receivable from ATO 9 498 7 860


All receivables are current assets

Receivables (gross) are aged as follows:Not overdue 11 103 8 375


Goods and receivables are with entities external to the Australian government. Credit terms are net 30 days from date of invoice (2007: 30 days).

Non-financial assets

Note 17B - InventoryNational Reserve inventory held for distribution 28 816 31 035 Other inventory held for distribution 31 548 34 214

Total inventory 60 364 65 249

Note 17C - IntangiblesComputer software - at cost:

Internally developed - in progress 296 -

2007-08 is the first year that this asset has been developed therefore no reconciliation of openingand closing balances of intangibles is disclosed.

Note 17D - Other non-financial assets

Prepayments - 10 071

NOTE 18 Liabilities Administered on Behalf of Government

Note 18A - Suppliers

Trade Creditors 34 518 28 331

Note 18B - Unearned incomeUnearned income - States and Territories 19 877 34 806 Unearned income - other 206 206


All liabilities are expected to be settled within 12 months of balance date.

36


2008 2007NOTE 17 Assets Administered on Behalf of Government $’000 $’000

Financial assets

Note 17A - ReceivablesGoods and services receivable 1 605 515 GST receivable from ATO 9 498 7 860


All receivables are current assets

Receivables (gross) are aged as follows:Not overdue 11 103 8 375


Goods and receivables are with entities external to the Australian government. Credit terms are net 30 days from date of invoice (2007: 30 days).

Non-financial assets

Note 17B - InventoryNational Reserve inventory held for distribution 28 816 31 035 Other inventory held for distribution 31 548 34 214

Total inventory 60 364 65 249

Note 17C - IntangiblesComputer software - at cost:

Internally developed - in progress 296 -

2007-08 is the first year that this asset has been developed therefore no reconciliation of openingand closing balances of intangibles is disclosed.

Note 17D - Other non-financial assets

Prepayments - 10 071

NOTE 18 Liabilities Administered on Behalf of Government

Note 18A - Suppliers

Trade Creditors 34 518 28 331

Note 18B - Unearned incomeUnearned income - States and Territories 19 877 34 806 Unearned income - other 206 206


All liabilities are expected to be settled within 12 months of balance date.

36



NOTE 19 Administered Reconciliation Table 2008 2007$’000 $’000

Opening administered assets less administered liabilities as at 1 July 20 352 ( 18 429) Plus Administered income 268 500 246 947 Less Administered expenses (725 351) (608 850)

(436 499) (380 332)

Revenues direct to Equity 836 - Adjustments for errors - 2 002 Administered transfers to/from Australian Government ( 34) - Transfers from OPA - Special Account 775 644 699 670 Transfers to OPA - Special Account (322 785) (300 988)

453 661 400 684

Closing administered assets less administered liabilities as at 30 June 17 162 20 352

37


NOTE 19 Administered Reconciliation Table 2008 2007$’000 $’000

Opening administered assets less administered liabilities as at 1 July 20 352 ( 18 429) Plus Administered income 268 500 246 947 Less Administered expenses (725 351) (608 850)

(436 499) (380 332)

Revenues direct to Equity 836 - Adjustments for errors - 2 002 Administered transfers to/from Australian Government ( 34) - Transfers from OPA - Special Account 775 644 699 670 Transfers to OPA - Special Account (322 785) (300 988)

453 661 400 684

Closing administered assets less administered liabilities as at 30 June 17 162 20 352

37



NOTE 20 Administered Contingent Liabilities and Assets

Unquantifiable Administered Contingencies

The Deed of Agreement between the Australian Red Cross Society (ARCS) and the NBA in relation to the operation of the ARCBS includes certain indemnities and a limit of liability in favour of ARCS. These cover a defined set of potential business, product and employee risks and liabilities arising from the operations of ARCBS. The indemnities and limitation of liability only operate in the event of the expiry and non-renewal,or the earlier termination, of the Deed of Agreement, and only within a defined scope. They are also subject to appropriate limitations and conditions including in relation to mitigation, contributory fault, and the process of handling relevant claims.

Under the terms of a current supply agreement, the Australian Government has an obligation to seek to reach agreement with CSL, within certain parameters, on payments to be made to CSL in recognition of the unavoidable and unrecoverable fixed costs incurred by CSL in the production and supply of low volumes of certain products under that agreement. The amount of any payment cannot be quantified until agreement is reached.

Under previous agreements, the Australian Government has indemnified CSL for certain existing and potential claims made for personal injury, loss or damage suffered through therapeutic and diagnostic use of certain products manufactured by CSL. These indemnities survive the expiry of the agreements. No similar indemnities have been given to CSL under the new existing agreements.

Under certain conditions the Australian Government and the States/Territories jointly provide indemnity for the ARCBS through a cost sharing arrangement for claims, both current and potential, regarding personal injury and loss of damage suffered by a recipient of certain blood products. The Australian Government’s share of any liability is limited to sixty three percent of any agreed net cost.

38


NOTE 20 Administered Contingent Liabilities and Assets

Unquantifiable Administered Contingencies

The Deed of Agreement between the Australian Red Cross Society (ARCS) and the NBA in relation to the operation of the ARCBS includes certain indemnities and a limit of liability in favour of ARCS. These cover a defined set of potential business, product and employee risks and liabilities arising from the operations of ARCBS. The indemnities and limitation of liability only operate in the event of the expiry and non-renewal,or the earlier termination, of the Deed of Agreement, and only within a defined scope. They are also subject to appropriate limitations and conditions including in relation to mitigation, contributory fault, and the process of handling relevant claims.

Under the terms of a current supply agreement, the Australian Government has an obligation to seek to reach agreement with CSL, within certain parameters, on payments to be made to CSL in recognition of the unavoidable and unrecoverable fixed costs incurred by CSL in the production and supply of low volumes of certain products under that agreement. The amount of any payment cannot be quantified until agreement is reached.

Under previous agreements, the Australian Government has indemnified CSL for certain existing and potential claims made for personal injury, loss or damage suffered through therapeutic and diagnostic use of certain products manufactured by CSL. These indemnities survive the expiry of the agreements. No similar indemnities have been given to CSL under the new existing agreements.

Under certain conditions the Australian Government and the States/Territories jointly provide indemnity for the ARCBS through a cost sharing arrangement for claims, both current and potential, regarding personal injury and loss of damage suffered by a recipient of certain blood products. The Australian Government’s share of any liability is limited to sixty three percent of any agreed net cost.

38



NOTE 21 Administered Financial Instruments


Notes

17A

18A

2008 2007$’000 $’000


Financial AssetsLoans and receivablesTrade and other receivables 11 103 8 375

11 103 8 375

Financial LiabilitiesOther LiabilitiesTrade and other creditors 34 518 28 331

34 518 28 331


Financial Assets

Cash






Monies in the Authority's bank accounts were swept nightly into the Official Public Account and held as a Special account.






39


NOTE 21 Administered Financial Instruments


Notes

17A

18A

2008 2007$’000 $’000


Financial AssetsLoans and receivablesTrade and other receivables 11 103 8 375

11 103 8 375

Financial LiabilitiesOther LiabilitiesTrade and other creditors 34 518 28 331

34 518 28 331


Financial Assets

Cash






Monies in the Authority's bank accounts were swept nightly into the Official Public Account and held as a Special account.






39



NOTE 21 Administered Financial Instruments (continued)


Financial assets



The fair values of all monetary financial liabilities approximate their carrying amounts.





The NBA's financial liabilities consist of trade and other creditors. The exposure to liquidity risk is based on the notion that the NBA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to special account funding and internal policies andprocedures put in place to ensure there are appropriate resources to meet its financial obligations.

Note 21F Liquidity Risk

The NBA holds basic financial instruments that do not expose it to certain market risks. The NBAis not exposed to 'Interest rate risk', 'Currency risk' or "Other price risk'.

40


NOTE 21 Administered Financial Instruments (continued)


Financial assets



The fair values of all monetary financial liabilities approximate their carrying amounts.





The NBA's financial liabilities consist of trade and other creditors. The exposure to liquidity risk is based on the notion that the NBA will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to special account funding and internal policies andprocedures put in place to ensure there are appropriate resources to meet its financial obligations.

Note 21F Liquidity Risk

The NBA holds basic financial instruments that do not expose it to certain market risks. The NBAis not exposed to 'Interest rate risk', 'Currency risk' or "Other price risk'.

40


NA

TIO

NA

L B

LOO

D A

UTH

OR

ITY

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TSfo

r the

yea

r end

ed 3

0 Ju

ne 2

008

Not

e 22

A

ppro

pria

tions

Not

e 22

A -

Acq

uitta

l of A

utho

rity

to D

raw

Cas

h fr

om th

e C

onso

lidat

ed R

even

ue F

und

for O

rdin

ary

Ann

ual S

ervi

ces

App

ropr

iatio

ns

2008

2007

2008

2007

2008

2007

$$

$$

$$

Bala

nce

brou

ght f

orw

ard

from

pre

viou

s pe

riod

-

-

-

-

-

-

Red

uctio

ns o

f app

ropr

iatio

ns (p

rior y

ears

)-

-

-

-

-

-

A

djus

ted

bala

nce

brou

ght f

orw

ard

from

pre

viou

s pe

riod

-

-

-

-

-

-

Appr

opria

tion

Act (

No.

1)

2007

-08

7 60

6 00

0

5 93

3 00

0

6 02

1 00

0

6 06

5 00

0

13 6

27 0

00

11

998

000

Appr

opria

tion

Act (

No.

3)

2007

-08

-

-

-

-

-

-

Dep

artm

enta

l adj

ustm

ents

by

the

Fina

nce

Min

iste

r (Ap

prop

riatio

n Ac

ts)

-

-

-

-

-

-

Adva

nce

to th

e Fi

nanc

e M

inis

ter (

Appr

opria

tion

Act s

ectio

n 11

)-

-

-

-

-

-

Ad

just

men

t of a

ppro

pria

tion

on c

hang

e of

ent

ity fu

nctio

n (F

MA

sect

ion

32)

-

-

-

-

-

-

Ref

unds

cre

dite

d (F

MA

sect

ion

30)

-

-

-

-

-

-

Appr

opria

tion

redu

ced

by s

ectio

n 9

dete

rmin

atio

ns (c

urre

nt y

ear)

-

-

28

000

-

2

8 00

0

-

Sub

Tota

l Ann

ual A

ppro

pria

tions

7 60

6 00

0

5 93

3 00

0

5 99

3 00

0

6 06

5 00

0

13 5

99 0

00

11

998

000

Appr

opria

tions

to ta

ke a

ccou

nt o

f rec

over

able

GST

(FM

A se

ctio

n 30

A)-

-

-

-

-

-

An

nota

tions

to 'n

et a

ppro

pria

tions

' (FM

A Se

ctio

n 31

)-

-

5

4 48

7

1

34 5

31

54

487

134

531

Ap

prop

riatio

n la

psed

or r

educ

ed-

-

-

-

-

-

Tota

l app

ropr

iatio

ns a

vaila

ble

for p

aym

ents

7 60

6 00

0

5 93

3 00

0

6 04

7 48

7

6 19

9 53

1

13 6

53 4

87

12

132

531

Cas

h pa

ymen

ts m

ade

durin

g th

e ye

ar (G

ST in

clus

ive)

-

-

-

-

-

-

Appr

opria

tions

cre

dite

d to

Spe

cial

Acc

ount

s (e

xclu

ding

GST

)7

606

000

5

933

000

6

047

487

6

199

531

13

653

487

12 1

32 5

31

Bal

ance

of A

utho

rity

to D

raw

Cas

h fr

om th

e C

RF

for O

rdin

ary

Ann

ual S

ervi

ces

App

ropr

iatio

ns-

-

-

-

-

-

Rep

rese

nted

by

Cas

h at

ban

k an

d on

han

d-

-

-

-

-

-

U

ndra

wn,

unl

apse

d ap

prop

riatio

ns-

-

-

-

-

-

To

tal

-

-

-

-

-

-

-

-

-

The

com

para

tive

info

rmat

ion

for 2

007

has

been

rest

ated

to re

mov

e th

e Sp

ecia

l Acc

ount

am

ount

s th

at w

ere

incl

uded

in th

e Ap

prop

riatio

ns n

ote.

Th

e to

tal r

educ

tion

in th

e Ba

lanc

e of

Aut

horit

y to

Dra

w C

ash

from

the

CR

F br

ough

t for

war

d fro

m 2

007

is a

s fo

llow

s:Pr

ior Y

ear 2

007

Cor

rect

ed 2

007

Adm

inis

tere

d17

5 42

7 10

4

-

Dep

artm

enta

l8

634

860

-

Part

icul

ars

Tota

lA

dmin

iste

red

Expe

nses

Dep

artm

enta

l Out

puts

41


Note 22 Appropriations

Note 22A - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations

2008 2007 2008 2007 2008 2007$ $ $ $ $ $

Balance brought forward from previous period - - - - - - Reductions of appropriations (prior years) - - - - - - Adjusted balance brought forward from previous period - - - - - - Appropriation Act (No. 1) 2007-08 7 606 000 5 933 000 6 021 000 6 065 000 13 627 000 11 998 000 Appropriation Act (No. 3) 2007-08 - - - - - - Departmental adjustments by the Finance Minister (Appropriation Acts) - - - - - - Advance to the Finance Minister (Appropriation Act section 11) - - - - - - Adjustment of appropriation on change of entity function (FMA section 32) - - - - - - Refunds credited (FMA section 30) - - - - - -

Appropriation reduced by section 9 determinations (current year) - - 28 000 - 28 000 -

Sub Total Annual Appropriations 7 606 000 5 933 000 5 993 000 6 065 000 13 599 000 11 998 000 Appropriations to take account of recoverable GST (FMA section 30A) - - - - - - Annotations to 'net appropriations' (FMA Section 31) - - 54 487 134 531 54 487 134 531 Appropriation lapsed or reduced - - - - - -

Total appropriations available for payments 7 606 000 5 933 000 6 047 487 6 199 531 13 653 487 12 132 531

Cash payments made during the year (GST inclusive) - - - - - -

Appropriations credited to Special Accounts (excluding GST) 7 606 000 5 933 000 6 047 487 6 199 531 13 653 487 12 132 531

Balance of Authority to Draw Cash from the CRF for Ordinary Annual Services Appropriations - - - - - -

Represented byCash at bank and on hand - - - - - - Undrawn, unlapsed appropriations - - - - - - Total - - - - - -

- - - The comparative information for 2007 has been restated to remove the Special Account amounts that were included in the Appropriations note. The total reduction in the Balance of Authority to Draw Cash from the CRF brought forward from 2007 is as follows:

Prior Year 2007 Corrected 2007

Administered 175 427 104 - Departmental 8 634 860 -

Particulars

TotalAdministered Expenses Departmental Outputs

41


NA

TIO

NA

L B

LOO

D A

UTH

OR

ITY

NO

TES

TO A

ND

FO

RM

ING

PA

RT

OF

THE

FIN

AN

CIA

L ST

ATE

MEN

TSfo

r the

yea

r end

ed 3

0 Ju

ne 2

008

Not

e 22

A

ppro

pria

tions

(con

t..)

Not

e 22

B -

Acq

uitta

l of A

utho

rity

to D

raw

Cas

h fr

om th

e C

onso

lidat

ed R

even

ue F

und

for o

ther

than

Ord

inar

y A

nnua

l Ser

vice

s A

ppro

pria

tions

2008

2007

2008

2007

$$

$$

Bala

nce

brou

ght f

orw

ard

from

pre

viou

s pe

riod

(App

ropr

iatio

n Ac

ts)

317

136

406

000

3

17 1

36

406

000

R

educ

tions

of a

ppro

pria

tions

(prio

r yea

rs)

-

-

-

-

A

djus

ted

bala

nce

carr

ied

from

pre

viou

s pe

riod

317

136

406

000

3

17 1

36

406

000

Ap

prop

riatio

n Ac

t (N

o. 2

) 20

07-0

8-

406

000

-

406

000

Ap

prop

riatio

n Ac

t (N

o.4)

20

07-0

8-

-

-

-

Dep

artm

enta

l Adj

ustm

ents

-

-

-

-

Ad

vanc

e to

the

Fina

nce

Min

iste

r (Ap

prop

riatio

n Ac

t sec

tion

12)

-

-

-

-

Ad

just

men

t of a

ppro

pria

tion

on c

hang

e of

ent

ity fu

nctio

n (F

MA

sect

ion

32)

-

-

-

-

R

efun

ds c

redi

ted

(FM

A se

ctio

n 30

)-

-

-

-

Appr

opria

tion

redu

ced

by s

ectio

n 11

det

erm

inat

ions

(cur

rent

yea

r)-

-

-

-

Sub

Tota

l Ann

ual A

ppro

pria

tions

317

136

812

000

3

17 1

36

812

000

Ap

prop

riatio

ns to

take

acc

ount

of r

ecov

erab

le G

ST (F

MA

sect

ion

30A)

-

-

-

-

Tota

l app

ropr

iatio

ns a

vaila

ble

for p

aym

ents

317

136

812

000

3

17 1

36

812

000

Cas

h pa

ymen

ts m

ade

durin

g th

e ye

ar (G

ST in

clus

ive)

-

-

-

-

Appr

opria

tions

cre

dite

d to

Spe

cial

Acc

ount

s (G

ST e

xclu

sive

) 3

17 1

36

4

94 8

64

317

136

4

94 8

64

Bal

ance

of A

utho

rity

to D

raw

Cas

h fr

om th

e C

RF

for o

ther

than

Ord

inar

y A

nnua

l Ser

vice

s A

ppro

pria

tions

-

3

17 1

36

-

3

17 1

36

Rep

rese

nted

by

Cas

h at

ban

k an

d on

han

d-

-

-

-

Dep

artm

enta

l app

ropr

iatio

n re

ceiv

able

-

3

17 1

36

-

3

17 1

36

Und

raw

n, u

nlap

sed

adm

inis

tere

d ap

prop

riatio

ns-

-

-

-

Tota

l-

317

136

-

317

136

Equi

tyTo

tal

Part

icul

ars

42


Note 22 Appropriations (cont..)

Note 22B - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for other than Ordinary Annual Services Appropriations

2008 2007 2008 2007$ $ $ $

Balance brought forward from previous period (Appropriation Acts) 317 136 406 000 317 136 406 000 Reductions of appropriations (prior years) - - - - Adjusted balance carried from previous period 317 136 406 000 317 136 406 000 Appropriation Act (No. 2) 2007-08 - 406 000 - 406 000 Appropriation Act (No.4) 2007-08 - - - - Departmental Adjustments - - - - Advance to the Finance Minister (Appropriation Act section 12) - - - - Adjustment of appropriation on change of entity function (FMA section 32) - - - - Refunds credited (FMA section 30) - - - -

Appropriation reduced by section 11 determinations (current year) - - - -

Sub Total Annual Appropriations 317 136 812 000 317 136 812 000 Appropriations to take account of recoverable GST (FMA section 30A) - - - -

Total appropriations available for payments 317 136 812 000 317 136 812 000

Cash payments made during the year (GST inclusive) - - - -

Appropriations credited to Special Accounts (GST exclusive) 317 136 494 864 317 136 494 864

Balance of Authority to Draw Cash from the CRF for other than Ordinary Annual Services Appropriations - 317 136 - 317 136 Represented byCash at bank and on hand - - - - Departmental appropriation receivable - 317 136 - 317 136 Undrawn, unlapsed administered appropriations - - - - Total - 317 136 - 317 136

Equity Total

Particulars

42



2008 2007$ $

NOTE 23 Special Accounts

THE NATIONAL BLOOD ACCOUNTLegal Authority: Financial Management and Accountability Act 1997 section 21

National Blood Account - Departmental

Balance carried from previous period 8 634 860 7 351 785 Appropriation Act (No.1) 5 993 000 6 065 000 Appropriation Act (No.2) 317 136 494 864 Other receipts - States and Territory contributions 3 582 202 3 918 299 Other receipts (FMA section 31) 54 487 134 531 GST credits (FMA section 30A) 462 538 380 733

Total credits 19 044 223 18 345 212 Payments made to employees 5 816 339 5 692 308 Payments made to suppliers 4 278 847 4 018 044

Total debits 10 095 186 9 710 352

Balance carried to next period 8 949 037 8 634 860

Represented by:Cash - held by the NBA 63 400 52 862 Cash - transferred to the Official Public Account 8 885 637 8 581 998

Total balance carried to the next period 8 949 037 8 634 860

National Blood Account - Administered

Balance carried from previous period 133 740 539 126 723 721 Appropriation Act (No. 1) 5 276 000 3 952 000 Other receipts - Commonwealth contributions 438 427 887 401 748 158 Other receipts - States and Territory contributions 253 316 104 237 643 813 GST credits (FMA section 30A) 69 468 506 63 342 960

Total credits 900 229 036 833 410 652 Payments made to suppliers 775 643 773 699 670 113

Total debits 775 643 773 699 670 113


Represented by:Cash - transferred to the Official Public Account 124 585 263 133 740 539


and related appropriation) or debits (which reduce the balance of the Special Account and the relatedappropriation). Special Accounts are not administered items and are therefore excluded from theSchedule of Administered Assets and Liabilities.

A special account is a mechanism used to record amounts in the Consolidated Revenue Fund (CRF)that are set aside for specified purposes.

The CRF is appropriated for the purposes of the Special Account, up to the balance of the SpecialAccount. Transactions on Special Accounts are recorded as credits (which increase the balance

The NBA's activities contributing to its outcome are classified as either departmental or administered.Departmental activities involve the use of assets, liabilities, revenues and expenses controlled by theagency in its own right. Administered activities involve the management or oversight by the NBA onbehalf of the Government of items controlled or incurred by the Government.

Purpose: The National Blood Authority was established on 1 July 2003 with the principal role ofmanaging the national blood arrangements, ensuring sufficient supply and to provide a new focuson the safety and quality of blood and blood products. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003 , section 40.

43


2008 2007$ $

NOTE 23 Special Accounts

THE NATIONAL BLOOD ACCOUNTLegal Authority: Financial Management and Accountability Act 1997 section 21

National Blood Account - Departmental

Balance carried from previous period 8 634 860 7 351 785 Appropriation Act (No.1) 5 993 000 6 065 000 Appropriation Act (No.2) 317 136 494 864 Other receipts - States and Territory contributions 3 582 202 3 918 299 Other receipts (FMA section 31) 54 487 134 531 GST credits (FMA section 30A) 462 538 380 733

Total credits 19 044 223 18 345 212 Payments made to employees 5 816 339 5 692 308 Payments made to suppliers 4 278 847 4 018 044

Total debits 10 095 186 9 710 352


Represented by:Cash - held by the NBA 63 400 52 862 Cash - transferred to the Official Public Account 8 885 637 8 581 998


National Blood Account - Administered

Balance carried from previous period 133 740 539 126 723 721 Appropriation Act (No. 1) 5 276 000 3 952 000 Other receipts - Commonwealth contributions 438 427 887 401 748 158 Other receipts - States and Territory contributions 253 316 104 237 643 813 GST credits (FMA section 30A) 69 468 506 63 342 960

Total credits 900 229 036 833 410 652 Payments made to suppliers 775 643 773 699 670 113

Total debits 775 643 773 699 670 113


Represented by:Cash - transferred to the Official Public Account 124 585 263 133 740 539





The NBA's activities contributing to its outcome are classified as either departmental or administered.Departmental activities involve the use of assets, liabilities, revenues and expenses controlled by theagency in its own right. Administered activities involve the management or oversight by the NBA onbehalf of the Government of items controlled or incurred by the Government.

Purpose: The National Blood Authority was established on 1 July 2003 with the principal role ofmanaging the national blood arrangements, ensuring sufficient supply and to provide a new focuson the safety and quality of blood and blood products. The funding for blood and blood products is funded from a special account established under the National Blood Authority Act 2003 , section 40.

43



2008 2007$ $

NOTE 23 Special Accounts (cont..)

NATIONAL MANAGED FUND (BLOOD AND BLOOD PRODUCTS)Legal Authority: Financial Management and Accountability Act 1997 section 20

National Managed Fund (Blood and Blood Products) - Administered

Balance carried from previous period 41 686 565 31 740 889 Appropriation Act (No.1) 2 330 000 1 981 000 Other receipts - Commonwealth contributions 4 936 114 4 936 114 Other receipts - States and Territory contributions 2 915 483 2 900 372 Other receipts - External entities 175 890 175 890 GST credits (FMA section 30A) - 1 386

Total credits 52 044 052 41 735 651 Payments made to suppliers 226 291 49 086

Total debits 226 291 49 086

Balance carried to next period 51 817 761 41 686 565 Represented by:Cash - transferred to the Official Public Account 51 817 761 41 686 565


OTHER TRUST MONEY SPECIAL ACCOUNTLegal Authority: Financial Management and Accountability Act 1997 section 20

Other Trust Money Special AccountBalance carried from previous period - 3 165

Total credits - 3 165 Payments made - 3 165

Total debits - 3 165

Balance carried to next period - - Represented by:Cash - transferred to the Official Public Account - -

Total balance carried to the next period - -




Purpose: For expenditure of monies temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth.

Purpose: For the receipt of monies and payment of all expenditure related to the managementof blood and blood products liability claims against the Australian Red Cross Society (ARCS) inrelation to the activities undertaken by the operating division of the ARCS known as the AustralianRed Cross Blood Service.

44


2008 2007$ $

NOTE 23 Special Accounts (cont..)

NATIONAL MANAGED FUND (BLOOD AND BLOOD PRODUCTS)Legal Authority: Financial Management and Accountability Act 1997 section 20

National Managed Fund (Blood and Blood Products) - Administered

Balance carried from previous period 41 686 565 31 740 889 Appropriation Act (No.1) 2 330 000 1 981 000 Other receipts - Commonwealth contributions 4 936 114 4 936 114 Other receipts - States and Territory contributions 2 915 483 2 900 372 Other receipts - External entities 175 890 175 890 GST credits (FMA section 30A) - 1 386

Total credits 52 044 052 41 735 651 Payments made to suppliers 226 291 49 086

Total debits 226 291 49 086

Balance carried to next period 51 817 761 41 686 565 Represented by:Cash - transferred to the Official Public Account 51 817 761 41 686 565


OTHER TRUST MONEY SPECIAL ACCOUNTLegal Authority: Financial Management and Accountability Act 1997 section 20

Other Trust Money Special AccountBalance carried from previous period - 3 165

Total credits - 3 165 Payments made - 3 165

Total debits - 3 165

Balance carried to next period - - Represented by:Cash - transferred to the Official Public Account - -

Total balance carried to the next period - -




Purpose: For expenditure of monies temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth.

Purpose: For the receipt of monies and payment of all expenditure related to the managementof blood and blood products liability claims against the Australian Red Cross Society (ARCS) inrelation to the activities undertaken by the operating division of the ARCS known as the AustralianRed Cross Blood Service.

44



NOTE 24 Compensation and Debt Relief

Administered

No Act of Grace payments were made during the reporting period.

No ex gratia payments were made during the reporting period.

Departmental

No payments were made under the Defective Administration Scheme during the reporting period.

No payments were made under section 73 of the Public Service Act 1999 during the reporting period.

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34 (1) of the Financial Management and Accountability Act 1997 .

45


NOTE 24 Compensation and Debt Relief

Administered

No Act of Grace payments were made during the reporting period.

No ex gratia payments were made during the reporting period.

Departmental

No payments were made under the Defective Administration Scheme during the reporting period.

No payments were made under section 73 of the Public Service Act 1999 during the reporting period.

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34 (1) of the Financial Management and Accountability Act 1997 .

45



Note 25 Reporting of Outcomes

Note 25A - Net Cost of Outcome DeliveryParticulars Outcome 1

Year ended 30 June 20082008 $'000

2007 $'000

Administered 725 351 608 850 Departmental 9 021 9 059

Total expenses 734 372 617 909 Costs recovered from provision of goods and services to the non-government sectorAdministered 268 500 246 947 Departmental 4 294 4 064

Total costs recovered 272 794 251 011

Net cost/(contribution) of outcome 461 578 366 898

Note 25B - Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs

Particulars

Year ended 30 June 20082008 $'000

2007 $'000

Departmental expensesEmployees 5 826 5 712 Suppliers 2 621 2 941 Depreciation and amortisation 554 284 Other expenses 20 122

Total departmental expenses 9 021 9 059 Funded by:

Revenues from government 5 993 6 065 Sales of goods and services 4 294 4 064 Other non-taxation revenue 114 96

Total departmental revenues 10 401 10 225

Note 25C - Major Classes of Administered Revenues and Expenses by Outcomes

Particulars

Year ended 30 June 20082008 $'000

2007 $'000

Administered revenuesSales of goods and services 268 500 223 957 Other non-taxation revenue - 22 990

Total Administered Revenues 268 500 246 947 Administered Expenses

Suppliers 340 322 303 080 Grants 385 029 305 770

Total Administered Expenses 725 351 608 850

The National Blood Authority operates under one outcome and one output. Transactions reported under this output are reported in the Income Statement and the Balance Sheet.

Output 1

Outcome 1

46


Note 25 Reporting of Outcomes

Note 25A - Net Cost of Outcome DeliveryParticulars Outcome 1

Year ended 30 June 20082008 $'000

2007 $'000

Administered 725 351 608 850 Departmental 9 021 9 059

Total expenses 734 372 617 909 Costs recovered from provision of goods and services to the non-government sectorAdministered 268 500 246 947 Departmental 4 294 4 064

Total costs recovered 272 794 251 011

Net cost/(contribution) of outcome 461 578 366 898

Note 25B - Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs

Particulars

Year ended 30 June 20082008 $'000

2007 $'000

Departmental expensesEmployees 5 826 5 712 Suppliers 2 621 2 941 Depreciation and amortisation 554 284 Other expenses 20 122

Total departmental expenses 9 021 9 059 Funded by:

Revenues from government 5 993 6 065 Sales of goods and services 4 294 4 064 Other non-taxation revenue 114 96

Total departmental revenues 10 401 10 225

Note 25C - Major Classes of Administered Revenues and Expenses by Outcomes

Particulars

Year ended 30 June 20082008 $'000

2007 $'000

Administered revenuesSales of goods and services 268 500 223 957 Other non-taxation revenue - 22 990

Total Administered Revenues 268 500 246 947 Administered Expenses

Suppliers 340 322 303 080 Grants 385 029 305 770

Total Administered Expenses 725 351 608 850

The National Blood Authority operates under one outcome and one output. Transactions reported under this output are reported in the Income Statement and the Balance Sheet.

Output 1

Outcome 1

46

Management and Accountability Act 1997 and the Public Service Act 1999. Many decisions are given effect through contracts with suppliers which are administered by the National Blood Authority.

Arrangements for public participationUnder the National Blood Agreement, the primary responsibility for policy in the national blood products sector rests with the Australian Health Ministers’ Conference, supported by the Jurisdictional Blood Committee.

In the performance of its functions, the National Blood Authority has established consultative forums, including a Clinical Advisory Council, a Professional and Community Forum and a Suppliers Forum. The National Blood Authority also undertakes consultation with a range of other expert bodies and interested parties for specific projects.

Categories of documentsThe National Blood Authority maintains records relating to the performance of its functions. Records are retained for varying periods, depending on their administrative and historical value, and are disposed of in accordance with the standards and practices approved by National Archives of Australia under the Archives Act 1983. The categories documents held by the National Blood Authority appear in the following table.

7.2 Freedom of Information Statement

Section 8 of the Freedom of Information Act 1982 requires that Australian Government agencies publish, in their annual report, information about:

functions and decision-making powers ��that affect the public

arrangements for public participation ��in the formulation of policy

the categories of documents that are ��held by the agency

how these documents can be accessed ��by the public.

Freedom of information statisticsIn 2007–08 the National Blood Authority:

received two requests for access to ��documents under the Freedom of Information Act

received no requests for internal review ��under the Freedom of Information Act

was not involved in any Administrative ��Appeals Tribunal matters in respect of the Freedom of Information Act.

National Blood Authority functions and powersInformation on the organisation’s structure and functions is included in this publication, as is performance information.

Ministers and the National Blood Authority’s General Manager exercise decision-making powers under the National Blood Authority Act 2003. The National Blood Authority operates as an Australian Government agency where staff exercise functions and powers under Acts including the Financial

173Part Seven: Appendices 7.2 Freedom of Information Statement


Category Description

Program documents The National Blood Authority holds documents relating to: contracts and tendering processes; dealings with Australian Government and state and territory ministers, committees and other government agencies under the National Blood Agreement; and the performance of its functions under the National Blood Authority Act 2003.

Working files The National Blood Authority holds working files including correspondence analysis and advice by National Blood Authority staff, documents received from third parties, and drafts of these and other documents

Internal administration The National Blood Authority holds personnel records, organisation and staffing records, financial and expenditure records, and internal operating documentation such as office procedures, instructions and indexes.

Documents open to public access subject to a fee or other charge

The National Blood Authority holds no documents in this category.

Documents available for access or purchase subject to a fee or other charge

The National Blood Authority holds no documents in this category.

Documents customarily available free of charge upon request

The National Blood Authority’s annual report and other selected documents relating to the National Blood Authority are available on the internet at www.nba.gov.au

Procedures and contact detailsA request for access to documents under the Freedom of Information Act 1982 must be in writing. Applicants must enclose the $30 application fee and state an address in Australia to which notices can be sent. In certain circumstances the fee is not required or can be remitted by the National Blood Authority.

To enable a prompt response and to help the National Blood Authority meet its obligations under the Freedom of Information Act, applicants should provide as much information as possible about the document(s) sought. It is also requested that the applicant include a telephone number or an electronic mail address to allow National Blood Authority staff

handling a request to seek clarification if required. Applicants may be liable to pay charges at rates prescribed by the Freedom of Information (Fees and Charges) Regulations.

Inquiries about making a formal request under the Act should be directed to the National Blood Authority’s Freedom of Information Coordinator, in writing to:

Freedom of Information Coordinator National Blood Authority Locked Bag 8430 CANBERRA ACT 2601

Facilities for accessPhysical address to documents can be arranged at the National Blood Authority’s premises. Inquiries should be directed to the Freedom of Information Coordinator at the address above.

175Part Seven: Appendices 7.2 Freedom of Information Statement

7.3 Blood products supplied by the Australian Red Cross Blood Service

Product number Fresh products supplied by the Australian red Cross blood Service

1a Whole Blood

1b Whole Blood - Leucodepleted

2a Whole Blood Red Cell

2b Whole Blood Red Cell - Leucodepleted

2c Whole Blood Red Cell - Buffy Coat Poor

2d Whole Blood Paediatric Red Cell - Leucodepleted (Set of 4)

2e Whole Blood Washed Red Cell

2f Whole Blood Washed Red Cell - Leucodepleted

3a Whole Blood Platelet

3b Whole Blood Platelet - Leucodepleted (Pool of 4)

3c Whole Blood Platelet - Buffy Coat Poor (Pool of 4)

3d Apheresis Platelet - Leucodepleted

3e Paediatric Apheresis Platelet - Leucodepleted (Set of 4)

4b Whole Blood Clinical FFP

4c Paediatric Whole Blood Clinical FFP (Set of 4)

4d Apheresis Clinical FFP

5a Whole Blood Cryoprecipitate

5b Apheresis Cryoprecipitate

6a Whole Blood Cryo-depleted Plasma

6b Apheresis Cryo-depleted Plasma

7a Autologous from Blood Donors

7b Directed complying with AHMAC Guidelines

7c Therapeutic Venesections for Whole Blood for Discard

7d Serum Eye Drops - Single Collection Unit


List of products supplied under the Plasma Products Agreement

Supplier Product type/trade name

Clinical use approved under the National blood Arrangements

CSL Limited Albumin

Albumex® 4 Used to treat hypovolaemia arising from shock, surgery or multiple organ failure

Albumex® 20 Used to treat patients suffering extensive burns or shock due to blood loss, or kidney or liver disease

Immunoglobulins

Hyper immune globulins

Used to prevent a specific infection such as tetanus, hepatitis B, Zoster or cytomegalovirus

Intragam® P Used to reduce susceptibility to infections and manage many immune system disorders

Rh (D) ® Used to prevent a potentially fatal form of anaemia in newborn babies of Rh (D) negative mothers

Clotting factors

Biostate® Used to treat Factor VII deficiency, known as haemophilia A

MonoFIX®-VF Used to treat patients who have Factor IX deficiency, known as haemophilia B or Christmas disease

Prothrombinex®-VF Used to manage some bleeding disorders (concentrated clotting factors) and warfarin reversal

Thrombotrol®-VF Used to manage an inherited condition wherein a patient’s blood clots too quickly

List of imported IVIg products



CSL Limited Sandoglobulin® Used to reduce susceptibility to infections and manage many immune system disorders

Octapharma Australia Pty Ltd

Octagam® Used to reduce susceptibility to infections and manage many immune system disorders

7.4 Plasma and recombinant products supplied under contract in 2007–08

177Part Seven: Appendices 7.4 Plasma and recombinant products supplied under contract in 2007–08

List of imported rare bleeding and blood disorder plasma products



baxter Healthcare Pty Ltd

Anti Inhibitor Coagulant Complex Concentrates/FEIBA®

Used to treat bleeding episodes including surgical interventions in haemophilia A and B patients with inhibitors


Protein C/Ceprotin® Used to treat congenital Protein C deficiency


FVII concentrate Used to treat Factor VII deficiency

CSL Limited FXI/BPL Factor XI

LFB Hemoleven®

Used to treat people with Factor XI deficiency (sometimes called haemophilia C)

CSL Limited FXIII/Fibrogammin P® Used to treat people with Factor XIII deficiency

CSL Limited Rh (D) Immunoglobulin/WinRho®

Used to prevent haemolytic disease of the newborn (HDNB), a potentially fatal form of anaemia in newborn babies of Rh (D) negative mothers

List of imported rare bleeding and blood disorder recombinant products



Novo Nordisk Pharmaceuticals Pty Ltd

rFVIIa/NovoSeven® Used to treat bleeding episodes including surgical intervention in haemophilia A or B patients with inhibitors to Factor VIII or Factor IX; also used to treat complex bleeding episodes in surgery, trauma and septicaemia


rFVIII/Recombinate® Used to treat Factor VIII deficiency, known as haemophilia A


rFVIII/Advate® Used to treat Factor VIII deficiency, known as haemophilia A


rFVIII/Refacto® Used to treat Factor VIII deficiency, known as haemophilia A


rFIX/BeneFIX® Used to treat patients who have Factor IX deficiency, known as haemophilia B or Christmas disease


7.5 Abbreviations and acronyms

ABDR Australian Bleeding Disorders Register

AHCDO Australian Haemophilia Centres Directors’ Organisation

AHMAC Australian Health Ministers’ Advisory Council

AHMC Australian Health Ministers’ Conference

ANZSBT Australian and New Zealand Society of Blood Transfusion

APS Australian Public Service

ARCBS Australian Red Cross Blood Service

BCP Business Continuity Plan

CEO chief executive officer

CTEPC Clinical, Technical and Ethical Principal Committee

CVID Common Variable Immune Deficiency

EAG expert advisory group

FEIBA Factor Eight Inhibitor Bypass Agent

GST goods and services tax

HCV hepatitis C virus

HFA Haemophilia Foundation Australia

HIV human immunodeficiency virus

IDFA Immune Deficiencies Foundation of Australia

IDMS Integrated Data Management System

IT information technology

IVIg intravenous immunoglobulin

JBC Jurisdictional Blood Committee

JDO Jurisdictional Direct Order

KBP key business process

KPI key performance indicator

NBA National Blood Authority

NBSCP National Blood Supply Contingency Plan

NHMRC National Health and Medical Research Council

NIMS National IVIg Management System

NIRG National Indemnity Reference Group

NMF National Managed Fund

NSW New South Wales

OH&S occupational health and safety

PFR Plasma Fractionation Review

PPA Plasma Products Agreement

S&Q safety and quality

SIMDS sector information management and data strategy

TGA Therapeutic Goods Administration

US FDA United States Food and Drug Administration

Part EightIndex


Aaccountability (see external governance; internal

governance)achievements (see also performance)

barcoding policy, 21Blood Sector Data Strategy, 2, 22Blood Suppliers Forum, 20Comcover Award for Excellence in Risk

Initiatives, 21Factor VII and Factor IX Guidelines, 20, 25the first five years, 17–25Fresh Blood Products: Production Benchmarking

and Demand Drivers, 20Guidelines on the prophylactic use of RhD

immunoglobulin (anti-D) in obstetrics, 20National Blood Data Workshop, 25National IVIg Workshop, 24National Safety and Quality in Healthcare

Commission, 22, 28National Supply Plan, 19, 24NBA Fellows program, 21, 24Prime Minister’s Silver Award for Excellence in

Public Sector Management, 21Review of Distribution Arrangements for Blood

Products, 17, 25, 85, 85vCJD mitigation, 22

Administrative Appeals Tribunal, 173advertising and market research, 114Archives Act 1983, 173asset management, 114audit

external, 40internal, 113

Audit Committeemeetings, 39membership, 38, 116role, 39, 40

Australasian Society of Blood Transfusion, 72, 77Australian and New Zealand Society of Blood

Transfusion, 72Australian Antarctic Division, 82, 84Australian Bleeding Disorders Registry, 2, 20, 22, 23,

82, 83, 113Australian Commission on Safety and Quality in Health

Care, 92Australian Customs Service, 82, 84Australian Defence Force, 82, 84Australian Haemophilia Centre Directors’ Organisation,

83Australian Health Management Plan for Pandemic

Influenza, 90Australian Health Ministers’ Advisory Council

endorsements, 67, 88role, 32, 33, 34, 57

Australian Health Ministers’ Conferenceendorsements, budget, 45, 51endorsements, other, 28, 29, 49, 50, 67, 79,

82, 85role, 6, 32, 33, 34, 35, 46, 117, 173submissions to, 21

Australian Health Protection Committee, 13, 88, 89Australian Laboratory Services Pty Ltd, 31, 45, 46, 66Australian National Audit Office, 39

audit report, 124–125Australian Public Service, 102Australian Public Service Commission, 102Australian Red Cross Blood Serviceagreements to supply project, 56annual capital plans, 51annual funding commitments, 47Australian Bleeding Disorders Registry, 83barcoding policy, 86business cases, 52, 53business study, 7, 25, 49, 53capital investment, 24, 51change program, 53, 54data collection, 76, 79Deed of Agreement, 5, 25, 47, 49–53, 54diagnostic reagents, use of, 66funding, 47, 51, 53, 112key performance indicators, 54National Managed Fund (Blood and Blood

Products) Special Account, 119overseas supply of blood products, 84performance, 53Plasma Fractionation Review, 85principal sites, 5, 7, 33, 49, 51product mix, 47, 48products supplied, 176relationship with NBA, 4, 5, 7, 47, 51, 53, 78,

84research and development, 50, 75Review of Distribution Arrangements for Blood

Products, 85review of governance arrangements, 113role as blood collector, 47role as blood supplier, 31, 44theme mapping, 50third party reviews, 56universal bacterial contamination testing, 79

Australian Red Cross Society, 47, 119Australian Taxation Office, 122Australian Workplace Agreements, 99

181Part Eight: Index

Bbacterial contamination testing, 20, 33, 49, 56, 79barcoding, 21, 86Baxter Healthcare Pty Ltd, 31, 44, 65, 177biographies, Board members, 10–16biographies, senior executive management, 36–38blood and plasma products (see also blood supply)

bacterial contamination testing, 20, 33, 49, 56, 79

defined blood products, 65diagnostic reagent products, 66future trends, 106–110imported products, 61–65, 82, 84intravenous immunoglobulin, 60, 61issues of all blood products, 80issues of factor IX products, 63issues of factor VIII products, 62issues of intravenous immunoglobulin, 60issues of IVIg products, 60issues of platelets, 55issues of recombinant factor VIIa products, 63issues of red blood cells, 55issues of total factor IX products, 64issues of total factor VIII products, 64leucodepletion, 20, 48, 49, 79management of fresh blood products, 47–57market share of diagnostic reagent supply, 66market share of recombinant factor VIII

products, 62product change proposals, 57product mix, platelets, 48product mix, red blood cells, 48production of fresh blood products, 47production of plasma-derived products, 47, 59,

61production of recombinant blood products, 61review of distribution arrangements, 85supplied by ARCBS, 175supplied by Baxter Healthcare Pty Ltd, 177supplied by CSL Ltd, 176, 177supplied by Novo Nordisk Pharmaceuticals

Pty Ltd, 177supplied by Octapharma Australia Ltd, 176supplied by Wyeth Australia Pty Ltd, 177

Blood Counts program, 67–69, 72–78development of guidelines and standards,

67–68education, information sharing and practice

improvement initiatives, 74improvements to systems, 74–75research, data and benchmarking, 75–78Review of NHMRC and Australasian Society of

Blood Transfusion guidelines, 72–73Blood Measures collaborative project, 78

blood supplychain, 30–31donors, 31future trends, 106–110government funding, 30National Blood Supply Contingency Plan, 5, 20,

25, 33, 88, 89NBA role, 30suppliers, 31Therapeutic Goods Administration, 30

blood transfusionsguidelines, 78International Society for Blood Transfusion

annual conference, 2pretransfusion testing, 66professional societies, 72Review of NHMRC and Australasian Society of

Blood Transfusion guidelines, 72–73safety, 2, 4, 74–77, 108

Board, National Blood AuthorityChair’s report, 6–9meetings, 24members, 10–16

budget (see finance; financial statements)Business Continuity Plan, 5, 94, 103business study of Australian Red Cross Blood Service,

7, 25, 49, 53

CChief Executive’s Instructions, 40, 87, 113, 115Clinical, Technical and Ethical Principal Committee, 32,

33, 34, 67, 88Clinical Advisory Council, 19, 20, 21, 25, 67, 173Clinical Excellence Commission (NSW), 77Clinical Practice Guidelines on the Use of Blood

Components, 72Comcover Award for Excellence in Risk Management,

5, 21, 25, 93, 94Comcover Risk Management Benchmarking Survey, 93Common Variable Immune Deficiency, 70Commonwealth Disability Strategy, 103Commonwealth Procurement Guidelines, 113, 115competitive tendering and contracting, 114consultancies, 115, 120contracts

commercial contract management, 59–66new, 4, 17, 19, 61, 65, 66, 115

Corporate Plan, 28, 91Criteria for the Clinical Use of Intravenous

Immunoglobulin in Australiadelivery, 17, 20, 67–68, 69, 95endorsement, 2, 4, 33


CSL Ltdcontracts, 7, 17, 22, 31, 46, 61funding, 59imported IVIg products, 176imported plasma products, 177imported recombinant products, 177key performance indicators, 59market share, diagnostic reagents, 66national reserve of plasma products, 90Plasma Products Agreement, 176relationship with NBA, 24Review of Distribution Arrangements for Blood

Products, 85role in supply chain, 31, 44, 47, 59visit by NBA Board, 6

Customer Service Charter, 95

Ddata management

Australian Bleeding Disorders Registry, 82, 83Blood Measures collaborative project, 78corporate, 95Integrated Data Management System, 4, 87,

117sector information management and data

strategy, 81Deed of Agreement, Australian Red Cross Blood

Service, 5, 25, 47, 49–53, 54Department of Finance and Deregulation, 87, 120Department of Health and Ageing, 14, 36, 37, 72, 90DiaMed Australia Pty Ltd, 31, 45, 46, 66Disability Strategy, Commonwealth, 103discretionary grants, 113donors, 47

deferral, 30, 108management, 52, 54, 89recruitment and retention, 49, 50, 53testing, 70, 79, 89, 106

Ee-learning, South Australian initiative, 74ecologically sustainable development, 91, 96ethics

corporate, 100medical, 32, 33, 34, 67

exempt contracts, 113expert advisory group, 49external audit, 40external governance, 32–34external scrutiny, 40

FFEIBA (Factor VIII Inhibitor Bypass Agent), 44, 45, 80,

112finance, 117–122 (see also financial statements)

administered expenses, 120administered items, 120administered liabilities, 122assets, 119–121expenses, 119funding, 117funding contributions from states and

territories, 121key results, 112liabilities, 120operating result, 117performance overview, 117–119revenue, 119special accounts, 119summary resource table, 112

Financial Management and Accountability Act 1997, 87, 117, 119, 173

financial statements, 124–172independent auditor’s report, 124–125flood damage, NBA office, 25, 94, 119Food and Drug Administration (United States), 108,

110fraud

fraud control activities, 96Fraud Control Plan, 40, 96

freedom of informationfunctions and powers of the NBA, 173procedures and contact details, 174statistics, 173

Freedom of Information Act 1982, 173, 174

GGeneral Manager

review by, 2–5role, 35

governance (see external governance; internal governance)

Guide to the Preparation, Use and Quality Assurance of Blood Components, 33, 49, 53

HHaemophilia Foundation Australia, 12, 83Health and Ageing Portfolio Budget Statements, 41,

42Health Ministers, 33, 52, 67, 79, 80, 89 (see also

Australian Health Ministers’ Advisory Council; Australian Health Ministers’ Conference)

hma Blaze Pty Ltd, 114human immunodeficiency virus, 11, 77

183Part Eight: Index

IImmune Deficiencies Foundation of Australia, 70, 71information and communications technology, 4, 81,

91, 94, 96information management (see data management)Initial Australian Haemovigilance Report, 2, 17, 25, 74,

95insurance, flood damage compensation, 119Integrated Data Management System, 4, 87, 117internal governance, 35International Plasma Protein Congress, 8International Society for Blood Transfusion annual

conference, 2intravenous immunoglobulin (IVIg) (see also Criteria for

the Clinical Use of Intravenous Immunoglobulin in Australia)

case study, 70–71imported IVIg standing offer, 61issues of, 60, 61production, 61top ten uses, 69

JJurisdictional Blood Committee

endorsements, 4, 8, 53, 61, 67, 68, 74, 86, 88guidance, 67, 81meetings, 24role, 4, 7, 28, 33, 34, 51, 93

Jurisdictional Direct Order, 61

Kkey business processes, 39, 40, 92, 93, 113, 115key performance indicators

ARCBS, 53, 54, 56CSL Ltd Plasma Products Agreement, 59, 59imported recombinant blood product contract,

65, 65National Blood Authority, 42, 43–46, 93

knowledge management (see data management)KPMG Limited, 49, 53

Lletter of transmittal, iiileucodepletion

definition, 79proportion of products leucodepleted, 48, 79universal, 20, 49, 79

Mmarket research, 76, 77, 114Minister for Health and Ageing, 6, 21, 32, 33, 35Ministerial Council, 21, 23

NNational Blood Account, 119National Blood Agreement

establishment, 17, 29, 34extract, 29objectives, 28, 57, 67, 81, 106provisions, 82, 84responsibilities, 30, 32, 106, 117, 173review, 9, 85

National Blood Authoritycapability strategy, 92continuous improvement framework, 96corporate performance, 91–96corporate values, 100customer service charter, 95exempt contracts, 113functions and powers, 173history, 24–25, 29internal governance, 35occupational health and safety, 103organisational structure, 35performance pay, 99productivity gains, 103professional and personal development, 102relationship with ARCBS, 4, 5, 7, 47, 51, 53,

78, 84risk management, 6, 40, 93role, 28, 173salary levels, 99staffing, 98–99work culture and conditions, 100workforce planning, 98–99

National Blood Authority Act 2003blood sector governance arrangements, 32,

173reporting and compliance requirements, 6, 117requirements of NBA and Board, 6, 28, 29, 35,

93, 106special accounts, 119supply obligations, 19–23

National Blood Supply Contingency Plan, 5, 20, 25, 33, 88, 89

National Haemovigilance Project, 74National Health and Medical Research Council, 72, 73,

77National Indemnity Reference Group, 57National IVIg Management System, 4National Managed Fund, 20, 24, 35, 47, 57, 119


National Managed Fund (Blood and BloodProducts) Special Account, 119National Product List, 79National Red Cell Utilisation Workshop, 75–77, 76national reserve of plasma products, 90National Supply Plan and Budget, 33, 45, 79, 87New Zealand, 33, 75Novo Nordisk Pharmaceuticals Pty Ltd, 31, 44, 65, 177

Ooccupational health and safety, 99, 103Octapharma Australia Pty Ltd, 31, 46, 61, 176Operational Plan, 8, 40, 91organisational structure, 35Ortho-Clinical Diagnostics, 31, 45, 46, 66Outcome 1

key performance indicators, 42total resources, 112

outputs (see achievements; performance)outsourcing, 21, 113overview, General Manager’s, 2–5

PParliamentary Secretary to the Minister for Health and

Ageing, 6, 33performance (see also achievements)

corporate performance, 91–96improvements in price and product quality, 45key performance indicators, 42–46, 93management of Australia’s blood supply, 43–45national administered budget performance,

45–46plasma fractionation, 8, 59review of arrangements, 7, 85Plasma Fractionation Review, 7, 85plasma products (see blood and plasma products)Plasma Products Agreement, 8, 22, 24, 59, 176Portfolio Budget Statements, 41, 42Professional and Community Forum, 20, 67, 173Professional Development Scheme, 102Public Service Act 1999, 25, 95, 100, 117, 173publications

Clinical Practice Guidelines on the Use of Blood Components, 72

Criteria for the Clinical Use of Intravenous Immunoglobulin in Australia, 2, 4, 17, 20, 33, 42, 67–69, 95

Factor VII and Factor IX Guidelines, 20, 25Fresh Blood Products: Production Benchmarking

and Demand Drivers, 20

Guide to the Preparation, Use and Quality Assurance of Blood Components, 33, 49, 53

Guidelines on the prophylactic use of RhD immunoglobulin (anti-D) in obstetrics, 20

Initial Australian Haemovigilance Report, 2, 17, 25, 74, 95

RReview of Distribution Arrangements for Blood

Products, 85Review of New Technologies, New Techniques and

New Products, 106, 107, 110Review of NHMRC and Australasian Society of Blood

Transfusion guidelines, 72–73Review of the Australian Blood Banking and Plasma

Product Sector, 29risk management

Comcover award, 5, 21, 25, 93, 94Strategic Risk Management Plan, 6, 40, 93

Ssecretariat services, 19, 34, 47, 57, 68, 93, 98sector information management and data strategy, 81senior executive management biographies, 36–38Senior Executive Service, 99supply (see blood supply)

TTherapeutic Goods Act 1989, 30Therapeutic Goods Administration, 20, 30, 32, 53, 89,

102transfusion-related acute lung injury, 108transmittal letter, iii

UUnited States Food and Drug Administration, 108, 110

Vvariant Creutzfeldt-Jakob disease (vCJD), 22, 108

WWyeth Australia Pty Ltd, 31, 44, 65, 177

National Blood A

uthorityA

nnual Report 2007 ~08

National Blood AuthorityLocked Bag 8430 Canberra ACT 2601

Phone 02 6211 8300 Fax 02 6211 8330 Email [email protected] Web www.nba.gov.au
