colac area health annual report 2006 - · pdf file• corangamarah art competition –...

Annual Report 2006Colac Area Health

Colac Area Health aims to be a recognised leader in the development

and provision of responsive, integrated health care.

To promote the health and wellbeing of the Colac and

District community through the provision of

quality acute, aged, residential and community

services that are accessible, affordable, fl exible

and integrated.

Our vision

Our mission

Vision

3

Colac Area Health Annual Report 2006

Colac Area Health aims to be a recognised

leader in the development and provision of

responsive, integrated health care.

MissionTo promote the health and wellbeing of the Colac

and district community through the provision of

quality acute, aged, residential and community

services that are accessible, affordable, flexible and

integrated.

Corporate ValuesPartnerships

Innovation

Leadership

Integrity

Quality

Respect

• Redevelopment of Community Hub.

• Alfred Felton Bequest ($20,000) and RACV Foundation ($5,000) for Youth Health Promotion Caravan.

• Premier of Victoria Launch of South West Alliance of Rural Health (SWARH) Virtual Services

Project (July, 2005).

• 2005 Victorian Public Health Awards for Excellence and Innovation awarded to

Be Active, Eat Well (BAEW) Project.

• Funding from Victorian Managed Insurance Authority (VMIA) for appointment of a full-time

Refugee Health Nurse position.

• Completion of a $14M Residential Aged Care Facility Redevelopment Project,

Corangamarah (July, 2006).

• Gala Evening – “A Night Under the Stars” – successful fund-raising event for Colac Area Health

and local community.

• Achieved three-year Accreditation.

• Be Active, Eat Well Project attracts further 12 months funding.

• Pilot Site for Bedside Entertainment System Technology (BEST).

• Official Opening of Corangamarah – August, 2006.

• Australian Council on Healthcare Standards Accreditation – September, 2006.

• Annual General Meeting – October, 2006.

• Corangamarah Art Competition – Exhibition and winner announced October, 2006.

Calendar of Events


Page

2 Vision and Mission 3 Highlights 3 Calendar of Events 4 Significant Facts 5 Our Performance 6 Who We Are, the Region 7 Our Services 8 Chairman’s and Chief Executive

Officer’s report11 Strategic Direction - Key Reporting

Areas15 Corporate Governance16 Board of Directors18 Organisational Chart19 Executive Management Team20 Quality Program21 Health Information Services22 Infection Control24 Information and Communication Technology25 Compliance Index26 Nursing Division30 Director of Medical Services31 Visiting Medical Staff32 Primary Care Division36 Community Partnerships36 Bequests and donations36 Volunteers38 Our people39 Occupational Health and Safety42 Service Awards43 Complaints42 General Services42 Waste Management 45 Financial Report46 Certification74 Auditor-General’s Report76 Statutory Compliance 77 Research and Publications77 Sponsors

Inside this report

Colac Area Health — Our highlights for the year

Significant Facts

Colac Area Health Annual Report 20064 5


Financial

Total Revenue 34,497,391 27,362,187 25,165,947 27,835,998 26,611,641 22,442,737

Total Expenditure 27,876,313 27,266,900 25,676,618 24,270,073 22,675,209 22,821,591

Revaluation Increment 5,602,270 - - 2,243,556 - -

Fund Decrease Resulting from

Change in Accounting Policy - - - (35,215) - -

Surplus/(Deficit) inc. Capital

Income and Unfunded Depreciation 12,223,348 95,287 (510,671) 5,774,266 3,936,432 (378,854)

Total Assets 41,823,383 28,938,566 29,007,894 28,617,037 22,429,913 17,509,579

Total Liabilities 6,796,864 6,484,135 6,808,388 5,909,754 5,497,941 4,477,922

Total Equity 35,026,519 22,454,431 22,199,506 22,707,283 16,931,972 13,031,657

Staff

Equivalent Full Time 285.90 285.60 282.55 283.80 271.51 263.73

Bed Days

Hospital 13,417 13,495 13,602 14,809 15,344 16,147

Average Length of Stay 2.67 2.78 3.05 3.32 3.54 3.63

Aged Care 25,418 24,385 25,965 27,713 28,132 27,613

Births 170 194 190 168 206 195

Operations 2,280 2,190 1,999 2,108 1,903 2,093

2004/2005 2003/2004 2002/2003 2001/20022005/2006 2000/2001

Inpatient Statistics

Same Day 2,722 2,524 2,231 2,281 1,890 1,919

Multi Day 2,308 2,342 2,231 2,293 2,450 2,535

TOTAL SEPARATIONS 5,030 4,866 4,462 4,574 4,340 4,454

WIES 3,011 2,925 2,822 2,859 3,005 3,113

Aged Care Statistics

Residents 127 140 155 112 115 123

Emergency Department

Outpatient Attendances 7,029 6,941 8,091 8,091 7,081 7,057

Community Services

Total Contacts 52,597 52,617 52,707 52,531 51,792 46,918

Total Clients 13,302 13,289 13,315 15,405 13,301 13,692

Hospital Bed Days

Year Days

2001/2002 15,344

2002/2003 14,809

2003/2004 13,602

2004/2005 13,495

2005/2006 13,417

Surgical Services

2004 2005 2006 % +/-

Ophthalmology 112 165 176 6.7%

Urology 85 162 194 19.8%

Orthopaedic 105 162 219 35.2%

Obstetrics/

gynaecology 181 197 142 (38.7%)

Weighted Inlier Equivalent

Separations (WIES)

Year

2001/2002 3,005

2002/2003 2,859

2003/2004 2,822

2004/2005 2,925

2005/2006 3,011

Our Performance

5 Year Financial Comparison

Year Total Revenue Total Expenditure

2001/2002 26,611,641 22,675,209

2002/2003 27,835,998 24,270,073

2003/2004 25,165,947 25,676,618

2004/2005 27,362,187 27,266,900

2005/2006 34,497,391 27,846,637

Our History


Obstetrics, Gynaecology and Aged Care Services are among Colac Area Health’s diverse range of services. Aged Care services include Residential and Respite Care and the newly-developed Residential Aged Care Facility.

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Colac Community Health Services was established on July 1, 1995, by the amalgamation of Colac District Hospital, Colac Area Community Health Centre Incorporated and Colac Housing and Financial Counselling Service. A further amalgamation took place with the Birregurra and District Community Hospital on January 1, 1997. From July 1, 2002 the organisation officially became known as Colac Area Health.

To celebrate our history, CAH commissioned the services of Dr Dawn Peel to document our comprehensive history. Her book Quality Community Care — Colac District Hospital 1882 to Colac Area Health 2003 was

Colac Area Health (CAH) provides services to Colac Otway, Corangamite and Surf Coast shires with a catchment population of about 30,000.

Colac Area Health is a unique, integrated Health Service model which provides Acute, Aged Care, Primary Care and Allied Health services. CAH currently operates a Public Health Service (50 beds), two Aged Care facilities (under one licence 78 beds), Birregurra Community Health Centre, Community Nursing incorporating Home and Community Care, Hospital in the Home, Post Acute Care, Palliative Care and an extensive range of Primary Care services.

officially launched in March, 2004.Colac Area Health commenced a major

redevelopment project in December, 2001. Stage 1A comprised the construction of a two-storey building which provides temporary accommodation for the Primary Care staff and permanent accommodation for pharmacy and pathology services. This building also includes the Helen Macpherson Smith Trust Conference Centre which provides an excellent venue for staff education.

Stage 1B, the Acute Medical Services building, was completed in February, 2003. The main reception entrance is now located in Connor Street. This is the first major redevelopment of acute patient services since 1971. The quality of accommodation and services provided is modern, comfortable and peaceful and reflects our community’s needs. This building comprises 15 single rooms, nine twin-share rooms, two four-bed rooms, two birthing suites, seven day surgery beds, Emergency Department, Operating Suite and Central Sterilising Supply Department.

The Colac Otway Shire is one of the most picturesque municipalities in Victoria, covering a diverse area from volcanic lakes, craters and plains in the north, through to the hinterland forests of the Otway Ranges to the Great Ocean Road coastline. The area provides diverse employment through a range of primary industries, tourism and commercial and community services.

Colac is the key industrial, commercial and service centre for the Colac Otway and surrounding region with a population of 12,000.

Colac Area Health currently has two aged care facilities, Otway Pioneers and Polwarth House, which provide High Level Residential and Respite Care. Both are accredited by the Aged Care Standards and Accreditation Agency and staffed by caring, specialist staff who understand the special needs of residents and their families.

In early 2005, Colac Area Health commenced building a new $14 million state-of-the-art Residential Aged Care facility which will replace our two existing facilities.

The new facility has been named Corangamarah and comprises 75 beds, 14 twin-share and 47 single rooms and includes a dementia-specific unit.

Corangamarah will have numerous private courtyards as well as having landscaped gardens for residents and relatives to enjoy. While the facility incorporates large communal gathering areas, there will also be private areas for residents to take time out for personal relaxation. Residents will move into Corangamarah in August, 2006.

About Colac

Acute Care Services• Acute Care• Day Chemotherapy• Emergency Department• General Medicine• Haemodialysis• Obstetrics and Gynaecology• Paediatrics• Psychiatry • Rehabilitation • Surgery – Dental, General, Gynaecology, Ophthalmology, Orthopaedic, Urology

Aged Care Services• Residential Aged Care facility• Residential and Respite Care

Community Nursing • Colanda Nursing Service • Continence Resource• Diabetes Education • Community Nursing • Hospital in the Home• Lymphoedema Clinic• Maternity Outreach • Palliative Care Nursing/Volunteers• Wound Management Resource

Diagnostic Services• Pathology • Radiology/Medical Imaging

Allied Health and Support

• Adult Day Activity Service • Be Active, Eat Well• Dental Clinic• Dietetics

Barwon Post Acute Care

Casterton

Hamilton

PortlandPort Fairy

Warrnambool

Cobden

MortlakeCamperdown

Apollo Bay

Lorne

Anglesea

Geelong

Colac

WinchelseaBirregurra

• Family Support• Financial Counselling• Housing Worker• Women’s Counsellor• Youth and Children’s Worker

• There are Visiting Services such as Family Planning, Drink Driver Education, Barwon Youth Accommodation Service, Legal Aid and Geelong Centre Against Sexual Assault.

• Nutrition• Occupational Therapy • Pharmacy • Physiotherapy • Podiatry • Rehabilitation• Social Work • Speech Pathology

Community Programs• Alcohol and Other Drugs• Birregurra Health Centre• Community Health• Family Violence Prevention and Support (Regional Networker) Children’s Resource Program (Regional Networker)• Gambler’s Help• Neighbourhood House

Family Services

Visiting Services

• Psychology• Supported Accommodation Assistance Program (Regional Networker)• Women’s Health• Youth Development

Co-Located Services•Barwon Youth Accommodation Services• DHS Child Protection• Diversitat• Neighbourhood Renewal

Who we are, the region we cover, our services

Chairman’s and Chief Executive Officer’s Report

Residential Aged Care


Mr Grant JohnstoneChairman, Board of Directors until June 2006

Newly-appointed Chief Executive Officer Geoff Iles brings extensive experience in the health industry to the role. Jan Ross has overseen the development of three major capital works projects, including the new Residential Aged Care (RAC) facility, during seven years as Chief Executive Officer.

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Partnerships and Alliances

Colac Area Health (CAH) has reached a significant milestone in its history with the completion of the 75-bed Residential Aged Care Project.

The completion will coincide with the retirement of Chief Executive Officer Jan Ross. During her seven-year tenure, she has overseen the completion of three major capital works projects, including the Primary Care/ Pathology and Pharmacy building, the Acute Medical Services building and Corangamarah, the Residential Aged Care (RAC) facility.

Mr Geoff Iles has been appointed as the successor to Ms Ross. Mr Iles has extensive experience in the health industry and was previously Manager, Health and Aged Care of the Barwon South-Western Region, Department of Human Services.

The 75-bed RAC project has been almost completed in the 2005/06 period.

The generosity of the community, trusts and foundations have resulted in a “Five-Star” home for 75 high care residents. The building includes, for the first time in Colac, provision of a 15-bed Dementia-Specific Unit.

The colour schemes are light and bright. Internal courtyards provide safe and supervised recreational areas for the residents. A room sponsored by The Colac Hosts has been furnished as a private dining room for residents to share special occasions with their relatives and friends.

The Ian Rollo Currie Estate Foundation has sponsored an Internet computer room to allow residents to send and receive emails, plus explore the Internet. This trust also funded the large plasma screens in the living areas and individual televisions for the residents’ rooms.The generosity of the estate of the late Robert Speirs has been acknowledged in a large living area, but funds from this estate have also been used throughout the building to purchase extra furnishings that will enhance the ambience and comfort for the residents.

Community EngagementThe community has again responded to developing a closer relationship with their health service.

In April, the Service held a Gala Evening in Colac, with 400 people attending including the Chief Commissioner of Victoria Police, Ms Christine Nixon, who was responsible for engaging the Police Showband. The talented young students of Trinity College Sophisticated Swing band were also featured on the night. Local businesses provided the ingredients for the four-course gourmet meal cooked by CAH staff and local chefs. Trinity College students were table attendants and the Rotary Club of Colac managed the drinks.

The event brought many people together to ensure that the night was a success. Our thanks to the two committees – Event Management and Catering Committee.

The Relatives and Carers’ Groups have been kept informed of the progress of the RAC building. Residents were invited to choose their rooms, thus promoting ownership of the project.

The CAH Auxiliary has again given great support to the Service, as they have for many years. The efforts of this group of women, the support and the links they establish with the community are appreciated.

Executive ManagementTeam (EMT)The integrated service delivery of CAH is complemented by the EMT management model. The input and decision-making by this talented group promotes collaborative decision-making which reflects the complexity of our organisation.

Mrs Ann Hague resigned as Director of Nursing in January, 2006. Mr Simon Walter, Business Manager for Acute Services, was appointed to the position.

Ms Anne-Maree Neal was appointed Manager, Human Resources in October,

Finance, payroll, information technology, supply, nursing support, allied health and human resources services have been provided.

Colac Area Health (CAH) continues to be a member of the South West Alliance of Rural Health (SWARH) Steering Committee and the SWARH Executive. Staff are represented on a variety of sub-committees. Attendance has been mainly by video-conferencing, saving time and eliminating the hazards of travel.

Major innovations in information technology included participation in the pilot Virtual Interactive Services Program (VISP). This program will allow residents at Lavers Hill to attend the local high school and access video-conferencing equipment that will allow them to contact the CAH Emergency Department for advice. It is anticipated that this program will be extended into other service areas, particularly in the Primary Care division.

Colac Area Health, along with Portland District Health, are piloting the Bedside Entertainment System Technology (BEST). This advanced technology includes touch screen television, Internet and email access and will eventually include access to menus, health information, on-line shopping and access to care plans.

2005 and has been most influential in a range of activities throughout the organisation, including risk management, complaints and the planning for an organisational development unit plus a wide range of industrial relations and human resources responsibilities.

The EMT increased to five members with the inclusion of the Manager, Human Resources to again reflect the high profile of this position.

Ms Jan RossChief Executive Officer

Mr Richard Riordan,Chairman, Board of Directors

The partnerships with Barwon Health surgical services have again increased throughput at Colac.

The feedback from Geelong residents has been positive and the pre-anaesthetic checks and admission trips have not deterred many patients from travelling to Colac, at the same time reducing waiting lists at Barwon Health.

The intent of the Memorandum of Understanding with Lorne Community Hospital has been partially achieved.


Achievements during the past year include the development of the Residential Aged Care facility and technological innovations including the Bedside Entertainment System Technology.

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Strategic DirectionKey Reporting Areas 2005/2006

Strategies OutcomesObjectives

Increased consumer engagement and participation.

The continued promotion and development of the Colac Area Health (CAH) integrated approach to the provision of community healthcare.

• Redevelopment of Community Hub completed.

• Development of governance model including Memorandum of Understanding (MOU) with Department of Human Services (DHS), Neighbourhood Renewal, CAH and Community Steering Committee being developed.

• Development of dedicated activities room/fitness centre at Birregurra Community Health Centre (BCHC) completed.

• Adult Day Activity Centre (ADAC) extensions to activity room completed.

• Security lighting in car park completed.

• Development of designated and sealed disabled car parks outside Primary Care building completed.

• Designated patient car parks for rehabilitation and dialysis allocated.

• Funding secured for Be Active, Eat Well (BAEW) Program for further 12 months.

• 2005 Victorian Public Health Spotlight Award for Excellence and Innovation to CAH BAEW Program November 2005.

• Residential Aged Care (RAC) redevelopment project nearing completion.

• Position the service to manage anticipated growth in staffing levels in Family Services.

• Facilitate co-location of schools’ dental services with CAH Community Dental.

• Ongoing development of Community Garden Project.

• Innovative case management model developed for special needs clients.

To develop options in relation to Primary Care redevelopment.

• Currently reviewing masterplan and options for the future of Polwarth and Otway in respect of Primary Care redevelopment, consolidation of satellite workplaces under one campus and development of Family Services Centre.

• Relocation of supply to converted boiler house and refurbishment of former supply department to office space completed.

• Diversitat – strategic alliance which led to the co-location of Settlement Officer for 12 months.

To support and enhance the wellbeing of consumers by a culture that is sensitive and responsive to their needs.

KRA 1:

To identify funding opportunities and examine areas for the development of systems to support Culturally and Linguistically Diverse (CALD) Program.

• Seek ongoing funding to extend the Refugee Health Nurse Program and further develop CAH strategic response to CALD issues.

• Successful funding submission Victorian Managed Insurance Authority (VMIA) for Refugee Health Nurse program – $50,000.

• Secured additional one off funding from DHS for refugee health needs – $50,000.

• Successful submission to Cancer Council to produce multicultural DVD on pap smears. Production of DVD completed.

• Co-location of Colac ACE International Humanitarian Support Service (IHSS) Worker based at Community Hub.

• Successful submission to Victorian Office of Multicultural Affairs for provision of cross cultural training and development.

• Initiated consolidation of the Colac Settlement Group now chaired by the Chief Executive Officer Colac Otway Shire.

Many people are involved in making our organisation what it is.

Board of Directors (BOD)Mr Grant Johnstone, as Chairman BOD, provided leadership to a Board faced with the challenges of providing a Health Service to a community within difficult budgeting restraints.

The more enjoyable task has been participating in the Project Control Group by Board members. This team manages the progress of the Residential Aged Care (RAC) Project and was chaired by Mr Wayne O’Brien, Treasurer of the BOD.

Mr Johnstone resigned on June 26, 2006, to transfer to a position in Gippsland.Mr Richard Riordan, the Senior Vice-President, was appointed as the new Chairman of the Board.

The Board will focus on consolidating current services and actively pursuing funding for Capital Works to provide suitable accommodation for the large number of Primary Care staff and the services they provide.

Acknowledgements

The Chairman of the BOD, Mr Richard Riordan and the Chief Executive Officer, Ms Jan Ross, recognise the contribution and support made by:

- Board of Directors members- Executive Management Team- Managers and staff- Volunteers and auxiliaries- Regional Director, Ms. J. Snell, and staff of Barwon-South-Western Region, Department of Human Services- Local businesses- Local service groups- Trusts and foundations- Our community

Mr Richard RiordanChairman, Board of Directors

Ms Jan RossChief Executive Officer




Review and maintain Obstetric models and identify funding opportunities for enhancement of Obstetric services.

• Review and analysis of current models to accommodate multicultural needs completed.

• Translation of midwifery patient information into languages of major multicultural users.

• Introduced regular monthly education (provided by ex-local doctor) for culturally diverse community in relation to sexual reproduction and contraception.

• Funding submission completed for a review of current Obstetric service for development of a sustainable model Colac Area Health (CAH) community – outcome pending.

• Introduced midwifery scholarship program which has resulted in recruitment of three midwives.

Improve access to timely information through the strategic use of information technology.

To engage staff and seek input into development of organisational Core Values.


Ensure ongoing communication with community and key stakeholders.

Develop and maintain surgical services to meet community expectations and Weighted Inlier Equivalent Separations (WIES) targets.

See KRA1

• External consultant appointed to review organisational structure.

• Consultant recommendations considered and actioned where appropriate:

- Human Resource Manager (HRM) appointed- EMT restructure- Food Services restructure (Hostess and Banqueting) commenced and redevelopment

commenced- Educational Services/Organisational Development Unit restructure commenced- Primary Care Management structure finalised- Services area (including general services, supply, maintenance, catering) restructure completed- Review ward clerk EFT ongoing.

Improve training, recruitment and retention of volunteers.

• Creation of a specific position to manage and co-ordinate volunteers for CAH with linkages to CAH Auxiliary.• Introduced training sessions for new volunteers – general and Palliative Care-specific.

• Achieved significant volunteer engagement in redevelopment works at Community Hub.

• Introduced structured induction program for volunteers including multicultural volunteers.

• Continue to identify opportunities for recruitment and retention of volunteers in the community.

• Electronic distribution/exchange of relevant information to Board of Directors (BOD) available.

• Remote access into South West Alliance of Rural Health (SWARH) network for Executive Management Team (EMT) available.

• Introduced Personal Digital Assistants (PDAs) for EMT.

• Undertake a review of the potential expansion and use of PDAs throughout CAH management structure.

• Seek, in consultation with SWARH, opportunities to further implement and enhance management information systems.

• Introduction of Tablet Personal Computer (PC) for management of electronic nursing staff rosters and monitoring of budgeted Equivalent Full-Time (EFT).

• CAH selected as a pilot site for Bedside Entertainment System Technology (BEST).

To be a sustainable people centred service provider.KRA 2:

Implementation of CAH Core Values statement/ ongoing training/ refreshers for staff.

• Implemented values education across the organisation.

• External consultants engaged to facilitate Primary Care Planning Day and further develop Core Values through input of all Primary Care staff.

• Incorporated Core Values in Assistant Director of Nursing (ADON) Planning Day and developed practical implementation framework in the Nursing Division.

• Review Vision and Mission Statement/incorporate Core Values at Strategic Planning.

Develop a recruitment and retention strategy and review of organisational structure – managerial levels.

• Developed and implemented an Innovations (Recovery) process and framework.

• Anticipated entity surplus in 2005/06 inflated due to capital income for Residential Aged Care (RAC) Redevelopment works and asset revaluation.

• Continue to pursue a flexible global funding base with Department of Human Services

• Promotion of new RAC facility resulting in full occupancy for first time since December 2002.

• Continuation of strategic alliance with Lorne Community Hospital.

• Recurrent WIES Conversion being pursued.

• Review of Resident Classification Scale (RCS) processes and outcomes leading to improvement in RCS levels and audit compliance.

• Participated in national trial RCS framework

• Redesigned RAC Nurse Unit Manager to improve Business Management processes.

• Obtained three-year Aged Care Standards Accreditation with compliance in four standards and 44 outcomes.

• Review underway of Nursing Management structure, rostering arrangements and management processes to ensure continued compliance with nurse-patient ratios.

• Needs analysis of staffing profiles completed and proposal currently under negotiation.

• Ongoing production and development of key communication mechanisms:- Quality Report- Annual Report- Community News- Articles in media- Website.

• Barwon Health alliance leading to an increase in general, orthopaedic, urology, gynaecology and dental surgery.

• Funding support to secure additional Colac-based General Surgeon.

• Redevelopment of Day Surgery Unit to accommodate more clients and increase throughput.

• Limited specialist anaesthetic services introduced.

• Review of equipment for surgical services ongoing as funding options become available.

• Funding secured for Anaesthetic Simulator course attended by four Registered Nurses and four members of the Visiting Medical Staff (VMS).

• Growth in Ophthalmology surgery.

• Functional review of Theatre User Group completed.

• Recruitment of regional General Practitioners (GP) for anaesthetic, obstetric and after hours on-call surgical services.

• Funded education package for Registered Nurses Division Two for Central Sterilization Supply Department certificate.

Continued expansion of surgical services.

Midwifery Service Development

Development in conjunction with Department of Human Services (DHS) of an ongoing financial “Innovations” Strategy to ensure continuing viability.

Financial sustainability




The ongoing development of an organisational culture which achieves the integration of systematic risk management processes into all levels of management activities both strategic and operational.

Improve access to timely information through the strategic use of Information Technology.

To enhance operational relationships with stakeholders including external providers, key agencies, community, Department ofHuman Services(DHS) and Local Government.

To minimise adverse outcomes by understanding and managing our risks.KRA 3:

Continue to refine/improve risk management.

• Risk Management Framework including risk register, and annual survey of managers reviewed and updated in line with new module of Riskman system.

• Adoption of Legislative Compliance framework and integration into risk management.

• Risk Managers completed Root Cause Analysis (RCA) education.

• Review structure Risk Management Team and Terms of Reference.

• Complaints Reporting Framework linked to Risk Management System.

• Purchased networked version of Riskman. Data translation completed. Implementation Plan developed including staff education and staff rollout in 2006/2007.

• Currently reviewing Information Technology (IT) staffing support requirements due to service-wide expansion and operational reliance on IT.

• Completed Self Assessment program against AS/NZ4360 – Risk Management – 97% compliant.

To maintain a viable and representative health service through the use of collaborative alliances.

KRA 4:

• Development of a solution focused Communication Framework that includes and engages Board of Directors (BOD), Visiting Medical Staff (VMS) representatives, Executive Director of Medical Services and key operational staff representation from key stakeholders: - Operational Meeting with Business Managers, Practice Managers, Chief Executive Officer (CEO) and ExDMS - BOD Ex meeting with representative of each Medical Practice and ExDMS - Regular meeting with designated VMS representative and Primary Care Managers - Monthly meeting with Chair of VMS, CEO, Director of Primary Care and Director of Nursing

• Inclusion of representatives from sub-regional health facilities in collaborative strategic planning processes.

• Feasibility study into General Practitioner (GP) in Community Health Strategy undertaken by Dr L. Gruner completed.

• Engaged nominated representatives from both Clinics to participate in the development of new submission under the GP in Community Health Strategy funded by DHS.

• Continue to market Colac Area Health (CAH) Primary Care and Corporate Services to local and sub-regional agencies as a revenue-raising opportunity.

• Continued development of relationship with Barwon Health. - Dental/School Dental services - Barwon Post Accute Care - Palliative Care services - Surgical services - Education services

• Funding obtained for Regional Director of Medical Services (DMS) operationally based at CAH.

• Continue to support and seek participation with newly-established Deakin Medical School.

• Current development of Key Reporting Areas (KRA) as part of new Contract negotiations, in line with the Credentialling process for medical practitioners in Victorian Rural Health Services.

Corporate Governance


Colac Area Health has continued to be a leader in developing an integrated Health Service delivery model. Underpinning the philosophy of this model is providing access to a range of appropriate services for rural communities.

Board Orientation and Education

Colac Area Health (CAH) is a Victorian public sector organisation incorporated under the Health Services Act 1988 and operates under the provisions of this Act.

The Minister responsible for the administration of the Health Services Act is the Minister for Health, Hon. Bronwyn Pike MLA. CAH is accountable through the Board of Directors (BOD) to the Minister for Health.

Colac Area Health is governed by an eight-person BOD appointed by the Minister. Board members are appointed for periods up to three years and serve in a voluntary capacity.

Governance refers to arrangements in place to administer, manage and monitor services provided. In past years the focus of the Board’s governance obligations was in management and financial areas.

Today, public health service providers are required to be more transparent and accountable to the community in their governance obligations, such as clinical governance and risk management. The functions of the Board of Directors are:• To conduct the Service in a manner that is consistent with the Mission Statement and the Health Services Act 1988• To establish reporting mechanisms to monitor the performance, reports and audit processes of the Service and to ensure that they comply with the Financial Management Act 1994• The general governance of the Service• To maintain proper accountability to government by close observation of all legislative requirements, ensuring that the Service meets or exceeds targets as agreed in the Health Services Agreement and complies with all standards governing the Service• To ensure compliance with legislative requirements governing Health Services and promote a safe, effective, appropriate and consumer orientated service within this legislative framework • To annually review the past twelve months’ activities and set future direction• To reflect the needs of the community and to communicate policy and strategic direction

by consultations, publications and promoting the profile of the Service • To ensure that the Service provides a range of appropriate services, promotes excellence and supports educated, competent staff • To promote good working relationships with Government Departments. Colac Area Health is addressing the governance issues associated with Health Service delivery to:• Meet community expectations by achieving quality health service delivery• Ensure there are corporate and clinical standards for accountability and leadership within the Service• Address the management and identification of risks and hazards by implementing a comprehensive clinical and non-clinical risk management system. The establishment of a Risk Management framework has seen delegation to the Safety Improvement Committee who reports on all aspects of risk through the established Board sub-committee framework• Ensure staff and facilities are assessed, reviewed and credentialled.

Orientation and Board Education has been undertaken by attendance at sub-regionalforums conducted by the Department of Human Services (DHS).

• Continued participation in South West Alliance of Rural Health internal audit program.

• Audits completed: - Fraud - Medical Workforce - Human Resources Review - Occupational Health and Safety.

• Management Information Audit currently in process.

• Participated in Victorian Managed Insurance Authority (VMIA) Fabric Survey for Dental Clinic, Forbes Street flats and Birregurra Community Health Centre (BCHC).

• Continued development and refinement of external contracts specifications and tender processes.

• Currently exploring market for suitable communication system for internal emergency response management.



Project Control Group

The Board has established a committee structure which complies with the Act and fulfils the requirements of the Board and the Mission Statement to ensure that policies set in place are community and patient-focused. The following are sub-committees of the Board:Finance Audit and RiskThis Committee receives reports from the Director of Corporate Services which reflects compliance with accounting standards and mandatory reporting requirements. Monthly monitoring of the financial performance of the Service is undertaken by the Committee as are all aspects of both the internal and external programs.Safety and QualityThe Safety and Quality Committee oversees clinical, quality, Occupational Health and Safety (including Infection Control) and emergency planning across the Service. It particularly focuses on the delivery of safe care, meeting regulatory compliance requirements and best practice standards.

Effective Board Governance requires members of the Board and the Executive Management Team (EMT) to participate in the Project Control Group (PCG) which oversees the Redevelopment Project. Representatives from Department of Human Services (DHS) Regional Office, Capital Management Branch, Architects, Project Managers and the Quantity Surveyor receive reports on construction progress.

Committee Structure

This education is directed at clarifying the roles and accountability of Board members in providing effective governance of their agencies.

Colac Area Health (CAH) has continued to be a leader in developing an integrated Health Service delivery model.

Underpinning the philosophy of this model is providing access to a range of appropriate services for rural communities.

Mr Richard Riordan, Chairman from 26 June, 2006B.Bus. (Management)Term of appointment: 1 November, 2005 to 31 October, 2006Board and Committee attendance:Board 11 of 11Finance Audit and Risk 10 of 12

Grant was a prominent community member and managed Radio Station 3CS/MixxFM for five years. He served on numerous committees, including the Blue Ribbon Foundation and Otway Business Inc.Grant was appointed Board Chairman on 28 November, 2005, and as a result of obtaining employment in the Gippsland region, resigned on 26 June, 2006.Grant provided excellent leadership and his departure from the Board and the Colac

community will be sorely missed.

Richard is a retail businessman and has completed a degree in Business Management in Melbourne. He returned to take up the family hardware business and is actively involved in the business community of Colac as past president of the Colac Business and Retailers Association. Richard also founded the volunteer organisation Friends of Lake Colac. Richard was appointed Chairman after the resignation of Mr Grant Johnstone.

Tony has been a member of the CAH Board for several years, the past three years as Chairman. Tony has represented our service over the past five years as an elected Councillor with the Rural and Regional Health Division of the Victoria Healthcare Association (VHA). In 2004 Tony was appointed as a Director of the Board of Management of VHA. Tony has a broad experience in community agencies and services in the Colac/Otway region. Currently he works as a training and development consultant with Royal Melbourne Institute of Technology (RMIT). His strong knowledge and commitment to the community is an asset in his role on the Board.

Tony has been elected as Chairman, Regional and Rural Council VHA.

The Board of Directors

Kathryn is employed by St. Laurence as the Manager of Community Programs. She is currently president of Arts Colac, and has previously held positions on the Colac Community Development Association and Executive Member Managers Association Victoria.

Wayne is a Chartered Accountant and has been a principal of a local accounting firm for 15 years. Before returning to Colac, Wayne worked with a large accounting firm in Melbourne with secondments interstate and overseas. Wayne is an active squash and tennis player and has a wide involvement in community affairs.Wayne has served on the board for eight years which has included terms as Chairman and Treasurer. During this period Wayne has overseen all stages of the major redevelopment projects which commenced in 2001.

Mr Anthony BaldwinTerm of appointment: 1 November, 2003 to 31 October, 2006Board and Committee attendance:Board 7 of 11Safety and Quality 7 of 10

Tony is a self-employed businessman and dairy farmer. He has an interest in quality assurance procedures, financial management and strategic planning. Tony is actively involved in the community as a member of the Rotary Club of Colac West, and Elliminyt Primary School and Trinity College Parent Committees.

Alison resides at Birregurra and is a partner in a family farming business. As a former member of the Birregurra Advisory Committee she contributed to the development of the Birregurra Community Health Centre. She is actively involved in the community as a member of the Birregurra Health Auxiliary, together with past and ongoing participation at committee level with the local pre-school and primary school. She is currently undertaking full-time study for a MTeach.

Mrs Alison McDonaldB.A. (Hons) Food and Accommodation Management, Cert. III Small Bus. ManagementTerm of appointment: 1 November, 2004 to 31 October, 2007. Board and Committee attendance: Board 9 of 11. Safety and Quality 6 of 10

Mr James Ryan B.A., L.L.B.Term of appointment: 1 November, 2005to 31 October, 2008Board and Committee attendance:Board 6 of 7Safety and Quality 2 of 5Finance Audit and Risk 5 of 6

Jim is a partner of a local law firm and a Life Member of the Law Institute of Victoria. He was a Councillor of the City of Colac for nine years and Colac Otway Shire for eight years, during which he held the position of Mayor for two terms. Jim is president of the Colac and District Cricket Association and Colac Turf Club, a committee member of Colac Do Care Inc., and is actively involved in community affairs.

Warren is a self-employed Director of a motor vehicle dealership based in Colac and Camperdown. He is actively involved in the community having served a term on the Colac Development Committee and currently holds the position of president of Otway Business Inc. in Colac.

Mrs Dianne LoubeyDip. Applied Science (Dental Therapy)Term of appointment: 1 November, 2002to 31 October, 2005Board and Committee attendance:Board 3 of 4

Dianne is a full-time Practice Manager of a medical clinic, a position she has held for ten years. Presently Dianne is actively involved in primary and secondary school communities, coaches school netball teams and has umpired netball at a senior level for many years.

Ms Kathryn McBrideDip. Fine Arts (ceramics), Grad Dip. Education, Dip. of ManagementTerm of appointment: 1 November, 2004to 31 October, 2006Board and Committee attendance: Board 10 of 11 Finance Audit and Risk 8 of 12

Mr Anthony Graham, Junior Vice-PresidentAdv Dip. Disability Work, Dip. FMI, Dip. Tas, Adv. Cert. R.A.C.S, Cert. IV Workplace and TrainingTerm of appointment: 1 November, 2004 to 31 October, 2007Board and Committee attendance:Board 9 of 11 Safety and Quality 2Finance Audit and Risk 4 of 5

Mr Grant Johnstone, Chairman to 26 June, 2006Term of appointment: 1 November, 2002 to 26 June, 2006Board and Committee attendance:Board 7 of 11Safety and Quality 5 of 10Finance Audit and Risk 3

Mr Warren McKeanTerm of appointment: 1 November, 2003to 31 October, 2005Board and Committee attendance:Board 2 of 4Finance Audit and Risk 4 of 5

Mr Wayne O’Brien, TreasurerB.Com, C.A., C.P.A.Term of appointment: 1 November, 2004to 31 October, 2007Board and Committee attendance:Board 10 of 11 Finance Audit and Risk 11 of 12


Executive Management Team

Corporate DivisionRoslyn Edsall, Health Information ManagerJennifer Evans, AccountantRandall Hose, Information and Communications Technology ManagerPamela Matheson, Quality Development ManagerGillian Neale, Administration ManagerTrevor Nelson, Services ManagerTim O’Sullivan, Supply ManagerJulie Rippon, Operational Support

Nursing DivisionArie de Leeuw, Education Services ManagerDonna Field, Clinical Support NurseAnn Gray, Clinical Nurse Consultant Infection Control Jenny Lang, Julie Trigg and Karen Gaylard, Pre-admission Discharge Planning CoordinatorsDavid Walters, Pharmacy Services Manager

Assistant Directors of NursingRuth BambryPaula DeavinPauline Kerr

The Board of Directors has delegated the operational activities of Colac Area Health to the Chief Executive Officer (CEO), the Executive Management Team (EMT) and staff in accordance with the Instrument of Delegation and the Health Services Act 1988 (Division 4 Section 33).

Jan Ross,Chief ExecutiveOfficer (CEO)

John Scarrott,Director of CorporateServices/Deputy ChiefExecutive Officer(DCS/DCEO)

Simon Walter,Director of Nursing(DON) appointedMarch 2006

John Townsend,Director of PrimaryCare (DPC)

Anne-Maree Neal,Manager, HumanResources, (MHR)appointed the fifthmember of the EMTin June 2006

The EMT members are:

Senior staff listThe Directors are supported by senior managers in Corporate, Nursing and Primary Care divisions.

Carmel O’BrienGail MooreDavid PlueckahnElizabeth ScarrottMuriel Spence

Nurse Unit ManagersLynda Inglis, Residential Aged Care - Business and RiskDelia Melville, Emergency DepartmentCarol Robinson, Residential Aged Care - Clinical (Resigned 30 April, 2006)Amanda Tout, Operating SuiteMargaret Trigg, Acute Care Unit

Primary Care DivisionShelley Bateup, Administration Unit ManagerSue Mulder and Pamela Matheson, Community Nursing Team ManagersMark Brennan, Health Promotion ManagerPauline Maunsell, Allied Health Team ManagerSuzanne Miller, Community Programs ManagerMarg White, Family Services Manager

19

The Community

Operational Support

Board of Directors

Chief Executive Officer

Personal Assistant, CEO

Quality Development

Organisational ChartDirector of Corporate Services/DeputyChief Executive OfficerCorporate ServicesAdministrationEngineering ServicesFinancial ServicesGeneral ServicesHealth InformationInformation & Communications Technology Supply

Director of NursingAcute and Aged Care Services Assistant Directors of Nursing (ADON)Clinical Nurse EducatorsClinical Support NurseEducation ServicesEmergency DepartmentInfection ControlOperating Suite/Day Surgery Unit/CSSD/HaemodialysisPharmacy ServicesPre-Admission Discharge Planning Personal Assistant, DONRisk Managers

Director of Primary CareAdministration UnitAllied Health Community NursingCommunity ProgramsFamily ServicesHealth Promotion Manager, Human ResourcesHuman ResourcesComplaints Liaison TeamPayroll/Salary Packaging

External ProvidersPathology/Radiology (Privatised)Executive Director of Medical ServicesChairman Visiting Medical StaffVisiting Medical Staff

Co-Located Services

Barwon Youth Accommodation ServicesDHS Child ProtectionDiversitatNeighbourhood Renewal

Quality of Care

Quality Program Future directions


Colac Area Health’s commitment to continuously improving the quality of services was recognised following four-year accreditation by the Australian Council on Healthcare Standards.

The Health Information Services department now has a greater ability to produce meaningful reports from the Patient Administration system to help guide CAH business practices.

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Risk Management will continue to drive the review of systems seeking opportunities to improve the safety of healthcare.

The introduction of the National Medication Prescription Chart is a key element in improving medication management.

Client satisfaction remains an integral component of measuring effectiveness and all service providers will be encouraged to seek consumer feedback. Residents at Corangamarah will be given every opportunity to highlight their level of satisfaction.

As an integrated health service provider, CAH will continue to focus on health promotion and illness prevention and on reaching disadvantaged groups.

Pamela MathesonQuality Development Manager

The Australian Council on Healthcare Standards (ACHS), the principal provider of accreditation across Australia, reviewed Colac Area Health (CAH) in 2005 for our commitment to continuously improve the quality of our services and safeguard high standards of care by creating an environment in which excellence in clinical care can flourish. CAH maintained its four-year accreditation.

Polwarth House Nursing Home, incorporating Polwarth House and Otway Pioneers, was reviewed by The Aged Care Standards and Accreditation Agency with the auditor noting evidence of continuous improvement across each expected standard and three-year accreditation status was awarded. The Quality Performance System used to measure clinical compliance with predetermined indicators supported the

Agency Assessment that there is evidence of improving performance. Quality activities are well entrenched and continuous throughout CAH. The Safety and Quality Committee 2006 Quality of Care Report is available as a supplement to the Annual Report. The report illustrates some of the broad range of services from aged, acute and primary care services and their outcomes. In line with national health strategies, key areas addressed within the report include the management of issues relating to infection control, medication management, pressure areas and falls prevention. There has been a significant focus on working with Culturally and Linguistically Diverse (CALD) populations within the community.

Colac Area Health continues to encourage all staff to actively pursue continuous improvement activities.

Health Information Services

Health Information Services provides medical record storage and maintenance for acute, residential and community nursing patients/residents. A number of other Health Information activities are performed in this department which include forms design and allocation, Unit Record (UR) number maintenance, Freedom of Information (FOI) processing and fulfilling other state and national reporting requirements. Part-timers staff the department, which includes a Health Information Manager, two clerical support staff and a clinical coder/audiotypist.

This year the department handled 42 FOI applications. Of these applications, 35 applicants were granted full access to their request, three were granted part access and four applications were refused. No internal reviews were requested.

A decision was made to store the deceased medical records off-site in order to enable a cull to take place of the existing primary storage area. One hundred and seventy boxes of medical records were packed and individually tracked. If the need arises for any record to be retrieved, the exact box location and number of volumes stored off-site is known.

The department has a greater ability now to produce meaningful reports from the Patient Administration system (Vital) to support business practices. A number of specific reports have been requested and written by the new South West Alliance of Rural Health (SWARH) Business Analyst. The department is now producing monthly activity reports, which includes inpatient statistics, Emergency Department attendances, and Weighted Inlier Equivalent Separations (WIES) targets.

The coding function of the department has been improved by both coders being able to access the 3M Codefinder software. Previously only one coder could access this software; hence data quality is more consistent. Coders have also participated in two education sessions run by the National Coding Centre for Health Australia to ensure the knowledge base is kept current.

Future Directions

The major activity for the next year will be a cull of the primary storage area of the department to improve record handling practices. The records culled will be moved to the secondary storage area and dividers will be installed into all shelving.

Roslyn EdsallHealth Information Manager

Infection Control


Ongoing education is an important tool for Colac Area Health in maintaining the focus on infection control and prevention. All staff attend education sessions which highlight infection control.

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Colac Area Health (CAH) currently has a designated Infection Control Consultant who is also an accredited Nurse Immuniser.

The Regional/Rural Infection Control Consultant is also based at CAH, and is shared by two Division 1 Registered Nurses.

They have an involvement with other local health services and have assisted in developing audit tools that can be utilised Victoria-wide.

These consultants continue their own personal professional development while fulfilling their role.

Recently, one consultant completed the Advanced Diploma of Business Management while the other continues to study for a Masters degree.

Colac Area Health has an Infection Control Liaison Nurse who works night duty and is further developing liaison roles in other departments. Throughout the organisation, all staff members are encouraged to have infection prevention and control as a major focus.

Ongoing education is seen as an important tool in maintaining this focus. This is achieved through all staff attending education sessions and various activities throughout the year that highlight infection control. During 2006, staff members in the Operating Suite and Sterilisation Department are attending education updates on various topics such as Validation of Sterilisation and Processing of Endoscopes. When new equipment is introduced to these areas, education on the correct use and processing is undertaken and appropriate policies developed. This ensures compliance with the Australian standard – AS/NZS 4187: 2003.

At CAH, staff follow the guidelines of the Victorian Government’s Infection Control Strategy, which ensures that prevention, monitoring and control of infection is a major part of the focus of any health service. Infection control programs run in conjunction with Quality and Safety and Clinical Risk Management programs. CAH is involved in surveillance and collection of data on hospital acquired infections and particularly those involving resistant organisms.

As a Public Health Service, CAH submits this data to the Victorian Hospital Acquired Infection Surveillance System, which is a Government-funded agency and we then receive quarterly surveillance reports.

Colac Area Health will be involved in the second stage of the Victorian Quality Council (VQC) Hand Hygiene Project from July 2006. This will look at ways of improving the hand hygiene compliance rate among health care workers and improving quality outcomes. CAH has been utilising chlorhexidine and alcohol-based hand rubs in our facility for the past two years and in the community and these products are already well accepted by our staff.

Our public Dental Clinic continues to maintain its valuable service to the community in conjunction with Dental Health Services Victoria.

Further developments are in the planning stages. The refurbishment of the sterilisation room continues to ensure compliance with relevant standards. This year the Dental Clinic staff are supervising the clinical practice of a trainee dental nurse, providing further employment opportunities within the community, and infection control principles are a major part of this program.

An extensive immunisation program is

available to staff for vaccine preventable diseases. Encouragement is given to all staff to participate in the annual influenza vaccination program. Influenza vaccine is also available to some in-patients in the Acute area and to all of the residents in the Aged Care facility.

With the development of the new Aged Care facility there will be a marked improvement in the amenities and facilities available to our residents and staff. The availability of many single rooms with ensuite facilities will make the prevention of infection and control easier to manage. Utensil washers in our utility rooms will make the job of maintaining the hygiene standard of patient use equipment easier to achieve. We look forward to the environmental improvements that this development will bring.

Ann GrayClinical Nurse ConsultantInfection Control

Infection control has been one of the key areas in CAH’s quality of care program. CAH Clinical Nurse Consultant Infection Control, Ann Gray, says quality of care aims to provide care that has been tested to prove its effectiveness.

This Annual Report of the entity is prepared in accordance with the Financial Management Act 1994 and the Directions of the Minister for Finance. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.Report of OperationsDisclosure Page, ClauseCharter and Purpose Page 15 9.1.3 (i) (a) Manner of establishment and relevant MinisterPage 15 9.1.3 (i) (b) Objectives, functions, powers and dutiesPage 7 9.1.3 (i) (c) Services provided and persons or sections of community servedManagement and Structure Page 16 9.1.3 (i) (d) (i) Names of governing board members and Audit Committee Page 8 9.1.3 (i) (d) (i) Name of Chief ExecutivePage 19 9.1.3 (i) (d) (ii) Names of senior office holders and brief description of each officePage 18 9.1.3 (i) (d) (iii) Chart setting out organisational structureFinancial and Other Information Page 38 9.1.3 (i) (e) Workforce data and application of merit and equity principlesPage 21 9.1.3 (i) (f) Application and operation of Freedom of Information (FOI) Act 1982Page 4 9.1.3 (ii) (a) Summary of financial results with previous year comparativesPage 44 9.1.3 (ii) (b) Summary of significant changes in financial positionPage 11 9.1.3 (ii) (c) Operational objectives for the year and performance against those objectivesPage 11 9.1.3 (ii) (d) Major changes or factors affecting achievement of objectivesPage 76 9.1.3 (ii) (g) Number and total cost of consulting engagements, each costing < $100,000Page 76 9.1.3 (ii) (h) Extent of compliance with Building Act 1993Page 76 9.1.3 (ii) (k) Statement on implementation and compliance with National Competition PolicyFinancial Statements Operating StatementPage 56 9.2.3 (ii) (a) Operating revenue by classPage 56 9.2.3 (ii) (c) Other material revenue by class including sale of non-goods assets and contributions of assetsPage 58 9.2.3 (ii) (e) Depreciation, amortisation or diminution in valuesPage 59 9.2.3 (ii) (f) Bad and doubtful debtPage 48 9.2.3 (ii) (h) Net increment or decrement on the revaluation of each category of assetPage 58 9.2.3 (ii) (i) Audit expenseBalance Sheet Page 48 9.2.3 (iii) (a) (i) Cash at bank or in handPage 48 9.2.3 (ii) (a) (ii) Inventories by classPage 48 9.2.3 (iii) (a) (iii) Receivables, including trade debtors, loans and other debtorsPage 48 9.2.3 (iii) (a) (iv) Other assets, including prepaymentsPage 48 9.2.3 (iii) (a) (v) Investments by classPage 48 9.2.3 (iii) (a) (vi) Property, plant and equipmentPage 48 9.2.3 (iii) (b) (iii) Trade and other creditorsPage 48 9.2.3 (iii) (b) (v) Provision, including employee benefitsPage 48 9.2.3 (iii) (c) (i) Authorised capitalPage 48 9.2.3 (iii) (d) Reserves, and transfers to and from reserves, shownCash Flow Statement Page 49 9.2.2 (i) (c) A statement of cash flows during the yearStatement of Recognised Income and Expense Page 50 9.2.3 (iv) A statement of recognised incomeNotes to the Financial Statements Page 65 9.2.3 (iv) (b) Contingent liabilities/assetsPage 70 9.2.3 (iv) (c) Commitments for expenditurePage 56 9.2.3 (iv) (d) Government grants received or receivablePage 66 9.2.3 (iv) (e) Employee Superannuation fundsPage 66 9.4 Transactions with responsible persons and their related parties


Colac Area Health is leading the way with the development of several Information Technology initiatives which help staff provide high quality patient care. CAH is the first health service in Australia to trial a new “entertainment” system which provides patients with means to assist with their recovery.

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Information Technology (IT) plays a major role in the ability to assist staff to provide quality care to patients, residents and clients of Colac Area Health (CAH). The 2005/06 year has seen some exciting IT innovations developed and deployed at CAH.

The trial introduction of new Bedside Entertainment System Technology (BEST) in the Acute Care Unit consists of a touchscreen Liquid Crystal Display (LCD) computer, mounted on a mechanical “arm” which can be manipulated to provide extensive placement options for the screen. The system is designed to provide display television, movies on demand, music clips, electronic books, Internet, radio, telephony and other entertainment functions. The trial of this system is proceeding and CAH is investigating installation of another 48 devices for all rooms in the Acute Care Unit, which will provide patients with means to assist with their recovery.

Colac Area Health is the first health service in Australia to trial this new system, which is being promoted by the South West Alliance of Rural Health (SWARH), of which CAH is a founding member.

A new security system is now installed in the Primary Care building. This system is based on fingerprint recognition technology, and uses a scanning algorithm to accurately verify the identity of a staff member. This new technology now allows the service to secure various areas without the need to issue keys to every staff member. This system will also be installed in the new Residential Aged Care facility, Corangamarah.

Colac Area Health medical monitoring network now has wireless capability. This allows the vital functions of a patient to be monitored wirelessly, even when being transferred from one location to another.

The service has about 180 Personal Computers (PCs) deployed. These PCs are refreshed at three-year intervals, and are managed by three servers. Approximately 340 staff have access to email.

Most staff now enjoy access to these PCs

using a technique called “roaming profiles”. Ordinarily, functions such as email and software such as word processing are only available from the PC, which the staff member was originally set up on. Roaming profiles allow staff to use any computer located throughout the service as though it was their “home” PC. This enhances productivity and reduces time wastage.

To further assist the Nursing Division with management of resources, a new rostering system has been developed by the ICT Department in conjunction with key nursing management staff. This will help reduce the workload involved with maintaining rosters. Additional functions embedded into the system provide easily accessible information such as staff loading.

Technology benefiting mankind – CAH is currently actively donating its unused computer processing resources to the grid computing project World Community Grid (http://www.worldcommunitygrid.org). The purpose of grid computing is to harness the unused processing power of thousands, and even millions of idle computers throughout the world, and put this “wasted” processing power to use solving large problems, which normally would require the use of Supercomputers.

World Community Grid has developed a project called “Fight Aids @ Home”, which attempts to model better drugs for use in combating HIV to particular drug molecules under certain conditions. This software was written by Professor Arthur Olsen of the Scripps Research Institute, California, United States (USA).

Most of CAH’s 180 computers contribute to this effort with their unused Computer Processing Unit (CPU) time.

With these exciting new innovations, we can forecast a bright outlook for IT and its role in assisting staff in providing high quality care at CAH.

Randall Hose Information and Communications Technology Manager

Information and Communication Compliance Index


The Aged Care Accreditation was highly complimentary of the care provided to residents by Residential Aged Care staff and non-nursing staff. Accreditation provides opportunities to identify strengths and weaknesses in various aspects of all operations.

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It has been a year of anticipation and opportunity as Colac Area Health successfully completed Aged Care Accreditation and the completion of the Corangamarah Residential Aged Care facility moved closer to fruition. Simon Walter(above) commenced in the role of Director of Nursing in early 2006.

outcomes. Aged Care Accreditation is a statutory requirement with strict guidelines to ensure optimum resident care. Special mention was given to our Activities Coordinators and Infection Control. It is pleasing to note that the survey report was highly complimentary of the care provided to residents. All Residential Aged Care (RAC) staff and non-nursing staff should be commended for their valuable contribution to this process and to the lives of the residents for whom CAH is home.

It has also been a year of anticipation as the completion of the Corangamarah Residential Aged Care facility comes to fruition. Staff have had the opportunity to visit the site throughout its development, including input into aspects of design and functionality as well as specialist equipment. An enormous amount of work has gone into planning the move of residents, staff and equipment into Corangamarah. Staff and residents are looking forward to moving to this state-of-the-art facility.

Corangamarah will cater for residents requiring dementia-specific care and, as such, a large proportion of staff have undertaken education specific to these residents’ needs.

The Operating Suite has continued to expand services and provides a large range of surgical services to the local community as well as to clients from around the region extending as far as Melbourne. Staff continue to provide expert, compassionate care for patients various surgical specialities as well as manage the day-to-day complexities of a busy clinical environment. The Visiting Medical Staff (VMS) provide anaesthetic services and the organisation has also engaged a specialist anaesthetist and specialist surgeons, offering surgery in many diverse areas, including ophthalmology, gynaecology, urology and orthopaedics. This is a wonderful asset for the community. Operating services continue to expand, particularly in the area of day surgery. Renovations were carried out in this area to create a step-down unit to increase patient throughput as well as provide a more comfortable post-operative environment.

Members of the Nursing and VMS attended an intensive two-day workshop conducted at the Monash Anaesthetic Simulator Centre. This centre provides a virtual theatre environment with a state-of-the-art human mannequin that breaths, talks, has heart and lung sounds, pupils that react to light, pulses and also reacts physiologically to drugs administered. Four Nursing staff and four VMS attended the program which is designed to ensure a team focus and cooperation in dealing with theatre emergencies.

The Haemodialysis staff also continue their vital work and contribute to the lives of their clients through the provision of a service that clients would otherwise have had to travel considerable distance to receive up to three times per week. Another staff member has undertaken additional education through Barwon Health to join this specialist service.

Replacement of vital equipment, including a new operating table and microscope, funded by the State Government as part of a targeted equipment grant, has commenced.

Operating Suite Acute Care Unit

The Acute Care Unit continues to provide care to post-operative, medical, palliative care and midwifery patients. The Unit also provides some day services, such as chemotherapy and specialist infusions. The Nurse Unit Manager and staff have been involved in further refining models for midwifery provision and examining innovative ways to cater for patients with varying conditions and varying care needs all in the one Unit.

Thirty staff have completed Advanced Cardiac Life Support (ACLS) education with many of the midwives also participating in the Advanced Life Support in Obstetrics course. These courses were funded as part of the organisation’s investment in the professional and personal development of staff which has natural flow-on to improved patient care.

New information management systems have been introduced into midwifery with an electronic client record about to be introduced. This record improves documentation, increases midwife/patient contact time and can be transferred to other institutions when required. Review of the Sleep Settling Program was undertaken with this service now being available in the patient’s home. This has seen an increased uptake due to improved service.

The Clinical Pathway Working Party (CPWP) headed by the Preadmission Discharge Planning Coordinators (PADPC) and Health Information Manager (HIM) have completed the introduction of day surgery pathways and continue to develop pathways in the areas of orthopaedics, respiratory and cardiology. There has been an increase in urology services and therefore we have reviewed the documentation and work processes associated with this service.

Following distribution of Victorian Quality Council Clinical Handover (VQCCH) guidelines, CAH has audited the effectiveness of handover and the findings will be integral in improving this vital nursing function.

Nursing Division

The past twelve months within the Nursing Division have seen many changes with new staff joining Colac Area Health (CAH) and other staff moving on to different challenges. Colac Area Health successfully completed Aged Care Accreditation, and Accreditation with the Australian Council on Healthcare Standards is due in September 2006. Accreditation provides the organisation with an opportunity to identify strengths and weaknesses in various aspects of all operations and mission to provide quality care to the community. As such, we view these times as opportunities.

Farewell Ann HagueColac Area Health farewelled Ann Hague in January 2006. During the past two years Ann contributed a great deal to the nursing division both personally and professionally with her insights and leadership. Colac Area Health applauds her contribution to the Nursing Division and the Colac community.

Residential Aged CareUnder the leadership of the Nurse Unit Managers, CAH achieved Aged Care Accreditation in all four standards and 44


Colac Area Health achieved Aged Care Accreditation in all four standards and 44 outcomes. Special mention was given to the Activities Coordinators and Infection Control measures.

28 29


Thirty staff completed Advanced Cardiac Life Support education courses funded as part of Colac Area Health’s investment in the professional and personal development of staff which has a natural flow-on to improved patient care.

A formalised observation policy was also developed in association with the Visiting Medical Staff in line with best practice. Other initiatives include a review of the process for follow-up phones calls following patient discharge and a review of patient bedside information.

The graduate nurse program continues with Colac Area Health (CAH) and Lorne Community Hospital providing the opportunity for graduates to gain experience at both sites.

Emergency Department

A planning day was held in February 2006 with the Director of Nursing and the Assistant Directors of Nursing. This was an opportunity to discuss issues relating to business and clinical practices, human resource and financial management. The group also developed values and a vision for what they wanted to achieve. Portfolios were decided upon and allocated and succession planning was discussed.

I would like to take this opportunity to thank all of the nursing staff for their support and for their dedication and passion in continuing to provide quality care to the Colac community.

Simon WalterDirector of Nursing

The Emergency Department provides a vital service to Colac and the surrounding region through the provision of facilities for emergency and after hours care.

The Emergency Department, in conjunction with the University of Melbourne, is participating in a pilot Virtual Interactive Services Program (VISP). This program will allow residents at Lavers Hill to attend the local high school and access video conferencing equipment that will let them contact CAH’s Emergency Department for advice. It is anticipated this program will be extended into other service areas, particularly in the Primary Care division.

Through the generosity of the Victoria Police Blue Ribbon Foundation – Colac Branch, the Emergency Department received a new patient transport ventilator. This ventilator allows for the improved stabilisation and treatment of critically ill patients prior to transfer to a tertiary centre and is a requirement in treating patients with severe head injuries. Staff education for use of this equipment was also completed.

The Emergency Department also continues to be the focus for the implementation of the Trak Health System (THS). This system forms part of an electronic record for emergency patients with staff being able to place details directly into a lap top computer as well as recall previous visits. This year,

pathology results access was added to the THS as part of the organisation’s alliance with Pathcare/St. John of God Pathology.

Infection Control

The Infection Control Nurses provide expert advice, education and monitoring across CAH as well as playing an important role in the local community and regionally as far as the Bellarine Peninsula. Influenza vaccinations have been a key issue this year for staff, patients and the community. To this end, CAH has provided vaccination services with other service providers, including local government and the Department of Human Services.

Colac Area Health’s Infection Control team is also a participant in stage one of the Victorian Quality Council’s (VQC) Hand Hygiene Project. This program is being conducted statewide after a pilot program was completed in 2004. The focus of this project is the reduction of Healthcare Acquired Infections (HCAI). It has been estimated that in Australia there may be as many as 150,000 HCAI, contributing to 7,000 deaths each year, many of which could be prevented through implementing appropriate infection control practices.

As well as the impact on patients, family and carers, these infections increase patient length of stay and from a financial perspective, it has been estimated that the average cost for treating a patient with an Methicillin Resistant Staphylococcus Aureus (MRSA) bacteraemia is $22,400 and that it may cost up to $173,000 to respond to a single outbreak of Vancomycin Resistant Enterococci (VRE) in a hospital. The project will involve the use of an alcohol-based hand rub and will monitor its usage as well as benchmark rates of nosocomial infection and hand hygiene compliance.

An additional staff member joined the Preadmission Discharge Planning Coordinators (PADPC) team as the role has expanded to assist in coordinating the admission of Residential Aged Care (RAC) residents in conjunction with the RAC Nurse Unit Managers and Social Worker. The PADPC also provide a point of first contact for many patients, particularly surgical, and their role is important in preparing patients for their impending care as well as following up post procedure. The PADPC also undertake extensive auditing and benchmarking to improve the timeliness and quality of this service.

The Pharmacy Department continues to promote Quality Use of Medicine strategies throughout the acute care sector. With the cooperation of medical and nursing staff, inpatients’ medications are reviewed to ensure the therapeutic need and rationale for all prescribed medicines. Services continue to pharmacotherapy, well women and cardiac rehabilitation clients.

Pharmacy staff are committed to ongoing professional development activities, ensuring the community that relevant knowledge is available for all clients. Pharmacy buying is compliant with Health Purchasing Victoria policy.

The Pharmacist continues to attend Legislative Compliance updates held quarterly by the Health Service’s legal advisors HealthLegal and briefs the Executive Management Team (EMT) on matters raised in these updates.

Pharmacy Department

Risk ManagementColac Area Health continues to refine its Risk Management System (RMS) and practices. As part of the South West Alliance of Rural Health (SWARH), CAH committed to the purchase and implementation of a new risk management database and computerised input system. This system will allow the reporting of risk to become paper-less and offer more timely access to and management of perceived risks. Due to the new system being adopted regionally, we can also benchmark our statistics against similar organisations.

Nursing Administration

Preadmission DischargePlanning Coordinators (PADPC)

Visiting Medical Staff


Dr. Max AlexanderExecutive DirectorMedical Services

30 31


Visiting Radiologists:Dr. C.M. Blecher, M.B., B.S., F.R.A.N.Z.C.R., D.D.UDr. J.N. Chamberlain, M.B., B.S., M.R.A.C.R., F.R.A.N.Z.C.R., D.R.A.C.O.G.Dr. A.D. Felber, M.B., B.S., D.D.R., F.R.A.N.Z.C.R.Dr. P.E. James, M.B., B.S., M.Med, F.R.A.N.Z.C.R.Dr. W.J. Rogers, M.B., B.S., F.R.A.C.G.P., F.R.A.N.Z.C.RDr. C.S. Woodward, M.B., B.S., F.R.A.C.R.

Visiting Pathologists:Dr. H.J.M. Armstrong, M.B., B.S., F.R.C.P.A.Dr. G.P. Davey, M.B., B.S., F.R.C.P.A.Dr. D.W. De Leacy, M.B., B.S., B.Sc., F.R.C.A.P.A. Dr. D.C. Gee, M.B., B.S., F.R.C.P.A., M.I.A.C. Dr. O.C. Harris, M.B., B.S., F.R.C.P.A.Dr. A.M. Jones, M.B., B.S., F.R.C.P.A.Dr. C.M. Pilbeam, M.B., B.S., B.Med.Sc., Ph.D., F.R.C.P.A., M.I.A.C. Dr. M.E. Robson, M.B., B.S., F.R.C.P.A.Dr. R.L. Spokes, M.B., B.S., F.R.C.P.A.Dr. G.W. Swinton, M.B., B.S., F.R.C.P.A.Dr. D.R. Trethewie, M.B., B.S., F.R.C.P.A.Dr. S.L. Wallace, M.B., B.S., F.R.C.P.A.

Dr. L. Burke, B.D.Sc.Dr. P. Hou, B.D.Sc.Dr. V. Lissett, B.D.Sc. (Resigned November 2005)Dr. J. McEwan, B.D.Sc. Dr. M. Trotter, B.D.Sc.Dr. N.J. Trotter, B.D.Sc.Dr. A.H. Wigell, B.D.Sc.

Dr. A. Isaac, M.B., Ch.B – (February 2004 – February 2007)Dr. G. Ku, M.B., B.S. – (February 2005 – January 2006)Dr. K. Chi Le, M.B., B.S. – (February 2006 – February 2007)Dr. A. Michael, M.B., Ch.B, D.R.A.N.Z.C.O.G. – (February 2004 – February 2005, August 2005 – February 2007)Dr. K. Okedara, M.B., B.S., - (February 2006 – February 2007)Dr. R.G. Organas, M.B., B.S. - (February 2005 – January 2006)Dr. A. Pathirina, M.B., B.S. - (February 2005 – January 2006)Dr. E. Wong, M.B., B.S. – (February 2006 – August 2006)

Dr. M.P. Alexander, M.B., B.S., F.R.A.C.G.P., M.B.A. Dr. A.F. Appelbe, M.B., B.S., F.R.A.C.P. Dr. D. Borsos, M.B., B.S.Dr. A. Brown, M.B, B.S., F.R.A.C.G.P., D.R.A.C.O.G., F.A.C.R.R.M., Dip. Sports Medicine (Appointed December 2005)Dr. M. Brownstein, M.B., B.S., F.R.A.C.G.P., D.R.A.N.Z.C.O.G. (Appointed December 2005)Dr. D.M. Buckley, M.B., B.S., D.A., D.R.C.O.G.Mr. K. Chao, M.B., B.S., Dip. R.A.C.O.G., F.R.A.C.S.Dr. M.T. Connor, M.B., B.S., F.R.A.C.G.P., Dip. R.A.C.O.G., A.C.C.A.M.Dr. C.P. Cooper, M.B., B.S., F.R.A.C.P.Dr. G.L. Gray, M.B., Ch.B., D.R.C.O.G.Dr. K.R. Griffiths, M.B., B.S., D.A., D.R.C.O.G., D.C.H.Mr. R. Grills, M.B., B.S., F.R.A.C.S. Dr. P. Hanson, M.B., B.S., F.F.A.R.A.C.S, F.A.N.Z.C.A. (Appointed December 2005)Dr. S. Haynes., B.S., F.R.A.C.G.P., F.A.Ch.P.M. Dr. P.H. Hewson, M.D., F.R.A.C.P., M.B., B.S.Dr. D.M. Jones, M.B., B.S., D.A., D.R.C.O.G.Dr. T.W. Jones, M.B., B.S., U.C.H.M.S.Mr. A.C. Lawler, M.B., B.S., F.R.C.S. (Edin), F.R.A.C.S. Dr. V. Lee, M.B., B.S., M.Med, F.R.A.C.S., F.R.A.N.Z.C.O.Dr. T.J. Lowe, M.B., B.S., D.R.A.N.Z.C.O.G.C., F.A.C.R.A.M., B.A.Mr. P.C. Lugg, M.B., B.S., F.R.A.C.S.Dr. I. Mackay, M.B., B.S., D.A., Dip. R.A.C.O.G., F.R.A.C.G.P.Dr. P.J. Madden, M.B., B.S., D.A., D.R.C.O.G.Dr. A. Mander, M.B., B.S., F.R.A.C.P.Mr. T.W. Mason, M.B., B.S., F.R.C.O.G., F.R.A.C.O.G.Dr. S.J. Menzies, M.B., B.S., M.Med, D.R.C.O.G., F.R.A.C.G.P.Dr. L.G. Munro, M.B. B.S., M.A.C.P. Pt 1 Mr. D.L. Murphy, M.B., B.S., F.R.A.C.S. Dr. R. McLennan, M.B., B.S., F.R.C.P., F.R.A.C.P.Dr. P.J. Nice, M.B., B.S., D.A., D.R.C.O.G.Dr. W. Rouse, M.B., B.S., F.R.A.C.G.P., D.R.A.N.Z.C.O.G., Grad. Dip. Rural G.P. (Appointed December 2005)Dr. E.W. Ryan, M.B., B.S., F.R.A.C.P. Dr. R.R. Sarkis, M.B., B.S. (Melb)Mr. J.W. Skelley, M.B., Ch B., F.R.A.C.S., F.A. Orth. A.Mr. C.S. Sutherland, M.B., B.S., F.R.C.S. (Edin), F.R.A.C.S.Mr. R.H. White, M.B., B.S., F.R.A.C.S.Dr. A. Wong, M.B., B.S., F.R.A.C.G.P., D.R.A.C.O.G., F.A.C.R.R.M., Grad. Dip. R.M. (Appointed December 2005)Mr. R.J. Wood, M.B., B.S. F.R.A.C.S.

St John of God Pathology

Visiting Dental Staff

Royal Australian College of General Practitioners Registrar Program

Symbion HealthThe medical staff providing services for Colac Area Health (CAH) are largely from the two practices in Colac, being Corangamite and Otway Clinics. Most of the local doctors are involved in the full range of procedural general practice, including emergencies, obstetrics and anaesthetics. The district is fortunate to have maintained the current number of General Practitioners (GP) with their wide range of skills. In recent times Mr Chris Sutherland has been the sole full time general surgeon in Colac. Mr Dominique Robert, who is a very welcome addition to the depth of Colac-centred services, has just joined him. In addition there are a number of visiting specialist surgeons, mainly from Geelong.

The close relationship between CAH and Barwon Health in clinical service developments has continued. There is expected to be increasing clinical interchange over time, notwithstanding the primary focus of CAH in providing local services for local people.

The two practices continue to train GP Registrars. This is very important to orientate young doctors to procedural rural general practice. In the long run it is how Colac will attract younger doctors to stay.

The redevelopment of the hospital block has continued in 2005/06, with the new Residential Aged Care facility nearing completion. This is a significant capital development that will greatly enhance the care of elderly residents.

Many of the doctors participate in committees that work to develop and improve the quality of care provided by CAH. This includes a monthly meeting of all the medical staff. This participation is gratefully acknowledged by the service; it is also an essential element in developing the teamwork that is necessary in our healthcare system.

During the year we tackled many issues that are central to the service including clinical audits, operational improvement and credentialing and scope of practice. There have been significant gains in these areas.

The last Medical Services Report was written by Dr Rod Fawcett as Visiting Consultant Director of Medical Services to CAH.

Rod stepped down in late 2005; it is appropriate to acknowledge his contribution to the service over the five years.

During the year Dr Peter Nice stepped down as chair of the Visiting Medical Staff (VMS) Group and Dr Danny Jones took over chairmanship. Both have provided steady, strong and consistent leadership to the VMS group for which they are sincerely thanked.Office Bearers:Chairman Dr. P. Nice to 10/11/2005Dr. D. Jones from 11/11/2006Deputy Chairman Dr. T. Lowe to 10/11/2005Dr. M. Connor from 11/11/2006Discipline Representatives:Anaesthetics - Dr. I. MackaySurgery - Mr. C. SutherlandObstetrics - Dr. G. GrayColac Area Health Committee Representatives:Divisions of General Practice - Dr. R. Griffiths Falls Committee - Dr. T. LoweInfection Control - Mr. C. SutherlandMedical Imaging - Dr. J. MaddenPathology Services - Dr. I. MackayPrimary Care – Dr. P. NiceSafety and Quality - Dr. T. LoweSWARH - Dr. J. Madden

Dr Max AlexanderExecutive Director Medical Services

Note: Full list of Visiting Medical/Dental Staff on Page 31

Dr. Danny JonesChairman VisitingMedical Staff

Director of Medical Services

Primary CarePrimary Care Division

Be Active, Eat Well



Colac Area Health has now almost completed the Be Active, Eat Well (BAEW) project, a four-year whole-of-community demonstration project in Colac that aims to promote healthy eating and physical activity in children aged four to twelve years, and their families. The project ends later this year and the intervention survey results of this major collaboration with Deakin University will be presented to the Colac community at a community forum in August, 2006. To date, interested professionals and academics have

The past twelve months have seen further expansion in Primary Care program provision at Colac Area Health (CAH), and we continue to forge ahead and consolidate our position as a leader in the field of rural health service provision. Primary Care programs are delivered by 112 staff working from the following locations:

• The Primary Care building and main campus, CAH• Adult Day Activity Centre, Miller Street• Colac Community Hub, Miller and Connor Streets• Birregurra Community Health Centre• Colac Community Dental Clinic, Hart Street• Culturally and Linguistically Diverse (CALD)/Refugee Health Nurse Program, Forbes Street.Services are grouped across four key operational areas — Allied Health, Community Programs, Family Services and Community Nursing. I am pleased to present some of the exciting highlights and major achievements from the year 2005/2006, and in so doing to acknowledge the excellent and creative work undertaken by CAH staff in the Primary Care Division.

The establishment of the co-located Child Protection team at Colac Area Health (CAH) has provided a unique opportunity to develop a new way of working and providing services to vulnerable families. This is the only such model in Victoria at this point and is a ground-breaking initiative by CAH.

The primary goals of the co-located team are to strengthen the relationships between Child Protection and the broader service system and to enhance the delivery of client services, while strengthening the capacity of the sector to respond to families with high needs.

The co-location of the team has provided

Expansion of the Family Support Service and Co-location of Department of Human Services Child Protection Team

• Provision of consultation and advice to agency staff where the assessment indicates there may be a requirement for statutory Child Protection involvement.• Supporting effective referral and engagement (including joint home visits) between Child Protection and Family Support workers.• Undertaking a range of existing Child Protection functions, including initial investigations, protection interventions and case management of clients subject to statutory orders.

The Family Support Service now extends its operational boundaries to cover Colac/Otway and Corangamite shires.

Men’s DepressionProject Worker

an opportunity for regular joint work and ongoing consultations. This has the benefit of increasing awareness in relation to the protective notification process, specifying what constitutes a notification, and assessment of risk versus need. The key functions are:

In a ground-breaking initiative, CAH has developed new ways of servicing vulnerable families. The Family Ser-vices team includes, from left, Rhonda Mahoney, Miffy Shelton, Daphne Finn and Family Services Manager Marg White.

visited the project from locations as far afield as Beijing and Broken Hill.

The BAEW project implements a unique multi-setting, multi-strategy approach. It successfully combines evidence-based practices with community needs. The project has worked with children, their parents and schools, local retailers, community groups, sporting clubs, health services and Colac Otway Shire to address healthy eating and physical activity in all children’s settings.

In November 2005, CAH’s ‘Be Active-Eat Well’ Project won the Victorian Public Health Spotlight Award for Excellence, presented in Melbourne by the Minister for Health.

Men’s health and wellbeing, particularly issues related to depression, have been identified as major health issues that have been largely neglected due to lack of specifically funded programs and projects to address the issues. The availability of specific funding streams to fund any specific men’s programs has been difficult to source.

The Men’s Project Worker is a fixed term position for six months funded by the Department of Human Services (DHS). It is envisaged that the project will produce a comprehensive report with clear recommendations and directions to address men’s health and wellbeing issues into the future, and identify possible funding sources to support future projects/programs.

“We continue to forge ahead and consolidate our position as a leader in the field of rural health service provision.”— John Townsend, Director of Primary Care.

Community Nursing

Men’s Behaviour Change


Colac Area Health seeks to provide dynamic initiatives and programs which promote behaviour and environments that support health and wellbeing for all members of the community. This also means increasing the capacity to consult and engage with the community to help develop an understanding and knowledge of personal and community health.

Young people involved in the Social Youth Connective in Colac work closely with Colac Area Health staff to raise awareness of issues affecting young people in the region.

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The Social Youth Connective in Colac(SYCIC)

In collaboration with the Western District Health Service, Colac Area Health (CAH) has participated as a partner agency in the development and implementation of the Sustainable Farm Families Project, utilising the skills and talents of the Home and Community Nursing Team. The project is predicated upon the view that the good health of the farmer and farming family is the single most important investment of a dairy business.

Colac Area Health is working with 200 dairy farmers across Victoria, including Colac and district, over a three-year period. Participants are provided with practical information regarding the importance of good health and its link to the productivity of the farming business. Sessions include a broad range of health-related topics including stress management, prevention of ill health, farm safety and nutrition. All participants undergo physical health checks and ongoing monitoring to assess blood sugar levels, cholesterol, body mass index and blood pressure.

New developments in regard to the Family Violence Program funding have provided CAH with the opportunity to work with men who use violence against family members. This is a challenging and highly specialised approach that requires CAH to have accredited staff in Men’s Behaviour Change Program Facilitation.

Two staff (one male and one female), funded by the Department of Human Services (DHS), are completing the requisite Graduate Certificate in Social Science at Swinburne University to be completed by the end of 2006. It will be a challenging and exciting opportunity for a community of this size to have the capacity to work holistically in the field of family violence.

Birregurra Community Health Centre has a new building extension achieved as aresult of a bequest left to the Birregurra community to develop an activities room

for use by the community. Along with the completion of the Colac Community Hub, these developments represent excellent collaboration, participation and engagement with the local community, and testimony to the quality of agency partnerships and the wonderful work of our volunteers.

The employment of two Refugee Health Nurses followed a successful funding submission process. The new roles have proved invaluable in bringing together the Sudanese community and providing health education and access to health services, including the development of a paediatric clinic organised in conjunction with local doctors and a visiting paediatrician. World Refugee Day was celebrated with a Soccer Carnival held at Trinity College, Colac in June. The day was well attended and supported by Colac Police, Diversitat, CAH and local community involvement. The CAH Culturally and Linguistically Diverse (CALD) program has continued to attract vital funding to support our work with culturally diverse members of the community.

The Social Youth Connective in Colac (SYCIC) is a vibrant group of young people who are working closely with a variety of staff to ensure that we are aware of, and addressing, pertinent issues for young people in the Colac region. This group initially participated in a two-day Peer Skills and Adventure Activity Program with Colac Area Health (CAH) staff and meet on a regular basis as a group and with their mentor. The group has organised an alcohol and drug- free “Open Mic(rophone)” event, convened and supported same sex attraction initiatives, completed alcohol and other drug peer education and much more.

The Smoking Cessation Service (SCS) was established at CAH in July 2005. The first group of clients commenced in August. The service covers both community-based outpatients and acute inpatients, including those in the Pre-admission Clinic.

The evidence base for this service was set out in Smoking Cessation Guidelines established by the Woolcock Institute of Medical Research in Sydney and supported by the Lung Health Promotion Centre of the Alfred Hospital in Melbourne. Formal training was undertaken by three CAH staff to deliver this service. The team has forged strong ongoing relationships with other health organisations seeking to establish a similar service.

The demand for appointments exceeds availability, with the greatest source of referrals coming from General Practitioners and the Barwon Mental Health Team. An increasing number of clients are self-referred.

The raw data for evaluation of the Smoking Cessation Clinic is currently being collected and collated. Early figures indicate that the success rate of 64% established in the first six months should be maintained. This high

Smoking CessationService (SCS)

level is in keeping with the expected outcomes established by The Royal Prince Alfred Hospital in Sydney. A total of 114 registered clients have been seen between the months of August 2005 and June 2006.

These examples encapsulate the range and diversity of our work and strongly complement the standard ‘core business’ functions of the Primary Care Division. Colac Area Health seeks to provide dynamic initiatives and high quality programs, promoting behaviour and environments that support health and wellbeing for all members of the community. In practical terms, this also means increasing the capacity to consult and engage with the community to help develop joint understanding and shared knowledge of personal and community health.

Our emphasis upon health promotion and a social model of health is built upon strong and meaningful consumer participation, which provides valuable momentum towards the achievement of good health outcomes across all sections of our increasingly diverse community.

John TownsendDirector of Primary Care

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Our Community


Colac Area Health’s inaugural Black Tie Gala Evening was a celebration of community spirit — a major fundraising event for CAH which led to its nomination in the Colac Otway Shire Business Awards.

36 37


Proceeds from various community fundraising campaigns have helped with the purchase of furniture, fixtures and fitting for Corangamarah, the new Residential Aged Care facility.

Auxiliaries

Community Partnerships

Colac Area Health currently has 250 registered volunteers, excluding palliative care volunteers.

These volunteers continue to be recognised as a vital part of CAH and provide assistance in the following areas:- Residential Aged Care- Adult Day Activity Program- Neighbourhood House- Community programs- Childminding- Flower ladies- Colac Area Health Auxiliary- Clerical roles- Pastoral visiting

Colac Area Health (CAH) recognises the valuable contribution of our Auxiliary members over many years. The members have raised thousands of dollars which has enabled CAH to purchase equipment, furnishings and fittings to benefit the community when using the Health Service.

The Birregurra Community Health Centre Auxiliary continues to support the Community Health Centre at Birregurra and provides ongoing fundraising which assists with the purchase of equipment for the Health Centre.

Certificates of Service are awarded to volunteers on completion of ten years service. Mrs Nea Hampshire was presented with a Certificate at the Annual General Meeting held in October, 2005.

Blue Ribbon FoundationA novel idea to host a rodeo in Colac has become part of the New Year calendar for many. This event is now in its fourth year and continues to attract enthusiastic crowds. It is organised by a small but dedicated committee and continues to raise awareness of this important foundation while raising funds to purchase vital equipment for the Emergency Department at CAH.Gala Evening – “A Night Under the Stars”The inaugural Black Tie Gala Evening, held on Saturday, April 8, was a stunning success. A marquee was erected on the Colac Cricket Ground overlooking Lake Colac with 400 guests being entertained throughout the evening by talented students from Trinity College band Sophisticated Swing.

Colac Area Health’s excellent relationship and association with Colac Police and the Blue Ribbon Foundation – Colac Branch helped secure the feature event of the evening – The Victoria Police Showband.

The evening was a chance to showcase local produce and wine, all of which was donated. Local chefs combined to cater for the evening.

Volunteers

Bequests and DonationsAs a result of our fundraising campaign, local community members, auxiliaries, volunteers, service clubs and groups, bequests, local businesses and CAH staff have raised in excess of $330,795.

Colac Area Health has been successful in receiving funds from the following philanthropic trusts:

• RACV $5,000• Alfred Felton Trust $20,000• Pierce Armstrong $2,000• Annie Danks Trust $8,000• Ian Potter Foundation $20,000

Special guests included Chief Commissioner of Victoria Police, Ms Christine Nixon, and long distance Olympic runner Mr Lee Troop.

This is probably the first event of this type that has been held in Colac and there were many people who contributed to making the night a success. We would like to thank the business sector and service clubs of Colac who gave great support and acknowledge without the assistance of Colac Area Health (CAH) staff, the occasion would not have happened.

We have received many compliments from guests about the night and it was an excellent opportunity to promote the products, businesses and community spirit.

The success has been recognised with this event being nominated in the Colac Otway Shire Business Awards.

Proceeds from the evening have assisted with the purchase of furniture, fixtures and fittings for Corangamarah, the new 75-bed Residential Aged Care facility.

Our People

Payroll & Salary Packaging

Occupational Healthand Safety


CAH has increased its number of employee health and safety representatives and reviewed Occupational Health and Safety (OHS) committee structures to ensure greater staff participation, consultation and access to information about workplace health and safety.

38 39


The Human Resources (HR) Department coordinates Human Resources, payroll and salary packaging, health and safety, and complaint liaison programs and services.

The Department provides advice to staff and management on industrial and employee relations, oversees Industrial Relations (IR) legislative compliance and monitors employment practice trends.

The department assists divisional managers with recruitment and selection, the delivery of organisational development, health and safety programs, and works to ensure harmonious workplace relations through the development of positive HR policies.

Current Equivalent Full-Time (EFT): 3.64

Through the Occupational Health and Safety (OHS) Committee, the Human Resources Department’s Safety Officer facilitates programs designed to reduce risk and continually improve workplace health and safety.

The OHS Committee meets monthly to look at issues of concern and to identify safe management practices. Colac Area Health’s (CAH) Safety Officer coordinates the annual workplace audit program, reports to management on OHS workplace matters and assists managers and staff to regularly review work practices and procedures with a view to enhancing safety levels and meeting OHS

Payroll staff have the responsibility for delivering a fortnightly payroll service to

approximately 600 employees at Colac Area Health (CAH) and two other local agencies and also manages salary packaging for about 400 employees. In 2005/06, salary packaging services were expanded to offer this facility to another local agency.

Salary packaging increases CAH’s capacity to reward and attract staff beyond the main base salary offered and enables CAH to provide a number of benefits to staff.

The staff take-up rate for standard salary packaging benefits for 2005/06 was 62%. Other packaging benefits utilised by staff include: meals and entertainment, superannuation, staff loans and laptops.

In 2005/06 a Payroll/Salary Packaging Intranet Page was implemented providing on-line information to staff on Health Sector Awards/Agreements; Forms for Payroll and Salary Packaging; News, Guides and Frequently Asked Questions.

standards.In 2005/06, health and safety designated

workgroups were expanded from eight to 17, with 88% of these groups now represented by a Health and Safety Representative (HSR) and 44% have deputy HSRs. During the year a number of HSRs participated in refresher training and Victorian WorkCover Authority (VWA) OHS training on committees.

In 2005/06, in line with the introduction of the new OHS Act 2004, discussions commenced with our Safety Improvement and OHS committees in regards to the amalgamation of these committees with the aim of increasing the emphasis on workplace staff and management consultation on health and safety matters.

Commencing as Colac Area Health’s Manager, Human Resources last year, Anne-Maree Neal sees her role as supporting managers to maximise the potential of their staff by identifying and delivering quality human resources and organisational development programs.

The Human Resources Department coordinates Human Resources, payroll and salary packaging, health and safety, and complaint liaison programs and services for all staff at CAH.

Complaints Liaison


The HR Department conducts monthly orientation for all new employees. The program includes a variety of information including backcare,

40 41


Colac Area Health has an open policy on feedback. Patients, residents, clients, their carers and the general public are actively encouraged to communicate any concerns or issues they wish to report about our service. All reported incidents are investigated and the outcome is advised to the complainant as soon as possible. In 2005/06 the Complaints Liaison Team dealt with 21 complaints with 16 being resolved within the financial year.

Colac Area Health is required to provide a monthly report to the Health Complaint Commissioner’s office and reports are also provided to the Board of Directors through our Safety and Quality Committee. We see this feedback as an opportunity to review our service delivery and work to continually improve outcomes for all concerned.

Anne-Maree NealManager, Human Resources

Colac Area Health (CAH) is committed to the principles of equal opportunity and will therefore recruit, train, transfer, promote and provide benefits of employment on the basis of merit and open competition regardless of gender, age, marital status, parenthood, race, colour, national or ethnic origins, physical or mental impairment, religious or political affiliation, industrial activity, sexual preference, physical features, personal association, family responsibilities, pregnancy or social origin.

Colac Area Health aims to ensure that employees are not discriminated against in the workplace, by fostering a work environment which provides mutual employee respect and working relationships. Our ongoing commitment is achieved through programs which educate and inform all employees of their rights and responsibilities. Also, new employees receive at orientation a copy of the Public Sector Code of Conduct, which includes information about the Public Sector’s guiding employment principles of Merit, Fair and Reasonable Treatment, Equal Employment Opportunity and Avenue of Redress.

Staffing Profile as at 30 June, 2006EFTs 285.9 - Full-time Employees 93,Part-time Employees 303, Casuals 89.Total: 485.Staff turn over 2005/06: 11.34%

Colac Area Health is committed to the aim of the Whistleblowers Protection Act 2001. Colac Area Health will not tolerate improper

Whistleblowers Protection

Human Resources Staff Member Length of Service (years)

Tom Baker 20Rosie Davey 25Glenys Devery 18Irene Gardiner 21Brian Gaylard 31Liz Gaylard 24Dawn Heppell 39Terry Lo Ricco 20Ken McCoombe 31Brian Menzies 21Peter Rees 31Liz Scarrott 21

Service AwardsCertificates of Service are awarded to staff and Visiting Medical Staff (VMS) on completion of 15 years service. Recipients at the Annual General Meeting held in October 2005 were as follows:

Margot Tarrant, Maxine Walters, Susan Hay, Beth O’Grady, Kathleen Riches, Kerri Clark, Pamela Murray, Christine Wilson.

Given the significant shortages of health professionals across Australia, recruitment continued to be a challenge in 2005/06.

The critical challenge was to fill a number of leadership and senior management positions. Colac Area Health (CAH) successfully recruited 53 new professionals including new appointments to the Executive Management Team (EMT) and key positions in nursing and primary care.

All current employees are required to undergo compulsory training on a bi-annual basis. The program includes fire and evacuation, infection control, no-lift, bullying and harassment and Cardiopulmonary Resuscitation (CPR). This year 158 employees completed compulsory training.

The Human Resources (HR) Department conducts monthly orientation for all new employees and students with a total of 64 attendees participating in orientation in 2005/06. The program includes information about human resources and corporate compliance programs, health promotional activities, manual handling and backcare, training and educational opportunities.

A staffing review conducted in August 2005 resulted in a number of changes to the organisational structure such as appointment of the Manager, Human Resources to the

EMT, consolidation of Food, Environmental, Supply, Engineering, Contract and Fleet management services under the position of Services Manager and an increase in management hours in our Primary Care Division. A number of consultative forums were also conducted with staff and their representatives in preparation for the opening of Corangamarah Residential Aged Care facility.

Colac Area Health in 2005/06 continued to provide a number of traineeship placements across the service including Division 2 Nursing, Health Administration, Information Technology, Food Services, Allied Health and Dental.

In the past year, a number of long serving staff members resigned. We thank them for their years of service to CAH and the

conduct by its employees, officers or members, nor the taking of reprisals against those who come forward to disclose such conduct. In accordance with the requirements of the Whistleblowers Protection Act 2001 (the Act), CAH has in place a policy to facilitate the making of disclosures under the Act.

For year 2005/06: Nil disclosures recorded.

The Human Resources Department’s Safety Officer facilitates regular programs for new and existing staff to reduce risk and continually improve workplace health and safety.

Equal Opportunity Statement

Food Service delivery to the new residential aged care facility has been reviewed taking into account quality, resident acceptance and food safety.

General Services

Audit of Food Safety Program

Future Directions:



Waste Management

AchievementsAudit of Cleaning ServicesIn accordance with requirements an audit was conducted on 28 March, 2006 by an External Auditor.

The General Services Department provides catering, cleaning, porter/orderly, mail, linen, personal linen and waste services to users of Colac Area Health (CAH). A total Equivalent Full-Time (EFT) of 53.2 includes supervisors, trade cooks, porters and general service assistants.

The food service is a cook fresh system and provides in excess of 200,000 meals per year.

External food service is provided to Colac Otway Shire (Meals on Wheels), Victoria Police Force, Australian Red Cross and other organisations.

Cleaning is provided from very high risk functional areas to minimal risk functional areas. All cleaning is in accordance with Cleaning Standards in Victorian Public Hospitals. External service providers, St John of God Pathology and Symbion Health located on-site, also use CAH cleaning services.

Patient/resident transportation throughout the service is provided by General Services Porters.

Relocation of workstations and storage of equipment is also overseen by the General Services Department.

In February, 2006 a restructure of the General Services Manager’s position saw this role changed to Services Manager. The new position retained management for the provision of Food Service, Cleaning, Environmental, Waste Management, Linen Service and now includes Engineering, Supply, vehicle fleet management.

Area

Group A - Very High RiskOperating Suite, ICU

Group B - High and Moderate RiskCSSD, Sterile supply areas,Emergency Dept., Pharmacyclear area, Wards etc

Group C - Low RiskLaboratories, Mortuary, MedicalImaging, Waiting Rooms,Administration

2005 2006

AreasAudited

AreasAudited

AreasAudited

2004

Score%

Score%

Score%

All areas meet the Cleaning Standards Acceptable Quality Level (AQL)

4 97 4 100 8 96

18 94 20 97 17 97

1 96 1 96

22 94.5 25 97.8 26 96.4

• Assisting with the move into Corangamarah• Implementation of the “Hostess” and “Banqueting” food system• Implementation of revised cleaning protocols and systems, considering culture, practice, infection control, and frequency and general perceptions.

Trevor Nelson Services Manager

Legislation also requires that an external audit of the Food Safety Program be conducted. Catering and Hospitality Management Services P/L conducted the audit on January 18, 2006.

3.2.2 - Food safety practices and General Requirements

3.2.3 - Food Premises and Equipment

2005%

2006%

94.57 93.48

2004%

96.74

2003%

94.90

100 100100 100

There were five non-notifiable areas requiring corrective action, This action was attended to and certificates were issued on

February 10, 2006. • Food Safety Plan, reviewed and accepted • Food Safety Plan developed for Birregurra Community

Health Centre

Accreditation as a Waste Wise business in the Community Program is due for audit in November 2006. This recognises that CAH is an industry leader in waste management. A waste management action plan was developed and is based on the Reduce, Reuse and Recycle principles of Waste Management.

Annual waste audits are conducted for general and clinical and related waste streams.

Food ServiceThe Food Service delivery to Corangamarah

has been reviewed taking into account quality, resident acceptance and food safety. Staff levels, equipment and procedures will all be reviewed, ensuring that standards are maintained. A recommendation was put to the Board of Directors and approval received in May, 2006 for the introduction of the “Hostess” and “Banqueting” food service. This will take some months to fully implement.Environmental ServiceCleaning protocols will be reviewed in consultation with the Infection Control Nurse and staff. With the increase in ensuites and change in layout, cleaning resources will need to be reviewed. Staff levels, equipment and procedures will all be reviewed, ensuring that standards are maintained.A central vacuum system has been

installed. This, along with other initiatives, Occupational Health and Safety (OHS) for environmental staff, will improve. Personal LinenThe laundry will move into the new facility and current machines will be relocated. Staff levels and procedures will be reviewed, ensuring that standards are maintained.

Colac Area Health (CAH) employed, on a part-time basis, a Consultant Engineer, Mr. Leo Ryan, to provide professional input into issues arising from the Residential Aged Care Redevelopment Project. This position has liaised with the Project Engineer, Structural Engineer and architects.

Patient/resident transportation throughout the service is provided by General Services Porters.

Engineering

Residential Aged Care RedevelopmentMany hours have been spent on the selection and purchase of furniture and fittings for the new Residential Aged Care (RAC) facility, Corangamarah. This redevelopment will have a significant impact on the General Services Department.

Due to retirement and extended sick leave of some Engineering staff, consideration is currently being given to outsourcing some services such as painting and electrical works.

Colac Area Health appreciates the support given by the Engineering/Maintenance staff in providing a service with reduced numbers.


Selected Performance RatiosCurrent RatioMeasure of the ability of the institution to pay current liabilities from current assets.

2001/20022005/2006

2004/2005

2003/2004 2002/2003

Debt to Equity (Gearing)Ratio is used to demonstrate the primary source of funds used by the Service to determine the level of reliance on internal or external funds.

2001/20022005/2006

2004/2005

2003/20042002/2003

Quick RatioMeasure of the ability of the institution to pay its current liabilities immediately.

2001/20022005/2006

2004/2005

2003/2004 2002/2003

Revenue IndicatorsAverage Collection Days

Private

TAC

VWA

2002 2003 2004 2005 2006

70

60

50

40

30

20

10

0

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006

1.6 0.71 0.78 0.34 0.52

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006

0.24 0.26 0.24 0.29 0.21

2001/2002 2002/2003 2003/2004 2004/2005 2005/2006

1.56 0.68 0.75 0.32 0.48

Day

s

Private

TAC

VWA

71,888 17,212 12,151 101,251- 140,263 80,848 160,560

- - - -- - - 577

6,006 - - 6,006- 7,350 8,684 23,415

Patients Fees Outstanding – Outstanding Debtors as at 30 June 2006Under 30

Days30–60Days

61-90Days

Over 90Days

Total30/06/06

Total30/06/05

Total30/06/04

Total30/06/03

Colac Area Health Annual Report 2006 Finance

Financial ReportThe continuing theme of past financial reports seems to be clearly linked to the tight financial environment in which Colac Area Health (CAH) operates and when reviewing results for the current year, it is no exception. Although an extremely large entity surplus is reported this occurrence is solely due to the major capital funding inflows which have been received to construct our new Residential Aged Care (RAC) facility.

The surplus tends to mask a range of operational difficulties which have been experienced in past years and have again been felt in the 2005/06 financial year.

A range of initiatives has continued in an attempt to increase variable throughput levels in the Acute hospital. An innovative arrangement with Barwon Health has seen waiting list patients at Barwon Health treated using viable funding from CAH. The scheme, although limited in its application, has had a two-fold effect – the maintenance of funding levels for CAH and also a decrease albeit small in Barwon Health waiting list levels. Coupled with the results of this initiative a further positive result is the attraction of a general surgeon to the area late in the financial year. It is anticipated that the level of surgical work undertaken in 2006/07 will be more closely aligned with budgeted requirements and reduce the flow of funds back to the Department of Human Services (DHS) due to actual versus target shortfalls.

Residential Aged Care occupancy levels continued to remain low for the first three-quarters of the financial year but with our new 75-bed facility nearing completion an influx of residents in the final quarter has seen occupancy increase to benchmark levels, a situation which is hoped will continue into the future.

The twin pressures of below target variable throughput in the Acute Hospital and low resident levels in RAC has had a marked effect in not only the levels of available cash held by the Service, but also the operational result of the Service as opposed to the entity result.

As a consequence of these pressures, whilst CAH reported an entity surplus for the year of $6,621,078 plus due to the addition of the revaluation increment, stripping at away Capital Income, Unfunded Depreciation and Gains made on Assets sales an operating deficit of $644,226 resulted.

Early indicators are that with the advent of a second general surgeon, and the maintenance of benchmark levels in RAC an improvement in both the operating result and the cash position of the Service can be expected in 2006/07. Coupled with these circumstances a range of initiatives to both increase revenues and decease expenditure are currently being examined by both the Board of Directors (BOD) and the Executive Management Team (EMT) to ensure the financial position of CAH returns to surplus as soon as possible.

Throughout the year the commitment of staff at all levels, and the support received from the Department of Human Services, Geelong must be acknowledged. It is because of such ongoing commitment and support that CAH will continue to improve and expand levels of care given through the various division of our integrated service model.

John ScarrottDirector of Corporate Services/Deputy Chief Executive Officer

“A range of initiatives to both increase revenues and decrease expenditure are currently being examined by both the Board of Directors and the Executive Management Team to ensure the financial position of Colac Area Health returns to surplus as soon as possible.”— John Scarrott


Operating Statement for the year ended 30 June 2006

REVENUE FROM OPERATING ACTIVITIES 2 25,581 25,041

REVENUE FROM NON-OPERATING ACTIVITIES 2 416 513

Employee Benefits 2b (18,454) (17,994)

Non Salary Labour Costs 2b (1,817) (1,628)

Supplies and Consumables 2b (2,924) (2,397)

Other Expenses from Continuing Operations 2b (3,410) (3,473)

Share of Net Result of Associates & Joint Ventures 18 (38) (35)

accounted for using the Equity Model

NET RESULT FROM CONTINUING OPERATIONS BEFORE (646) 27

CAPITAL AND SPECIFIC ITEMS

Capital Purpose Income 8,501 1,322

Depreciation 3 (1,235) (1,254)

NET RESULT FROM CONTINUING OPERATIONS 6,620 95

NET RESULT FOR THE YEAR 6,620 95

This statement should be read in conjunction with the accompanying notes

Notes Total 2006$’000

Total 2005$’000

Finance

Certification

We certify that the attached financial statements for Colac Area Health have been prepared in accordance with Part 4.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Cash Flow Statement and Statement of Recognised Income and Expense and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2006 and financial position of the Service as at 30 June 2006.

We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

Richard Riordan Geoff Iles Jennifer EvansChairman Chief Executive Officer Acting Director of Corporate Services Colac Colac Colac21 September, 2006 21 September, 2006 21 September, 2006

Accountable Officer’s, Chief Finance and Accounting Officer’s and Member of Responsible Body’s Declaration

Finance

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 22,968 20,522

Patient and Resident Fees Received 4,528 4,242

GST Recovered from ATO 1,536 859

Donations and Bequests Received 331 420

Interest Received 45 -

Other Receipts 932 1,243

Employee Benefits Paid (18,574) (17,614)

Fee for Service Medical Officers (1,998) (1,790)

GST Paid to ATO (2,897) (2,012)

Payments for Supplies and Consumables (6,998) (6,724)

CASH GENERATED FROM OPERATIONS (127) (854)

Capital Grants from Government 9,337 1,454

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 14 9,210 600

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment (8,776) (2,869)

Proceeds from Sale of Property, Plant & Equipment 71 486

Proceeds from Sale of Investments 78 -

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (8,627) (2,383)

CASH FLOWS FROM FINANCING ACTIVITIES

Contributed Capital from Government 350 -

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

NET INCREASE/(DECREASE) IN CASH HELD 933 (1,783)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 552 2,335

CASH AND CASH EQUIVALENTS AT END OF PERIOD 4 1,485 552


ASSETS

Current Assets

Cash and Cash Equivalents 4,19 1,485 552

Receivables 5,19 799 776

Other Financial Assets 6,19 162 136

Inventory 8 167 137

Total Current Assets 2,613 1,601

Non-Current Assets

Investment in Joint Venture using Equity Method 18 245 283

Receivables 5,19 677 1,482

Property, Plant and Equipment 12 38,288 25,572

Total Non-Current Assets 39,210 27,337

TOTAL ASSETS 41,823 28,938

LIABILITIES

Current Liabilities

Payables 9,19 1,360 1,287

Provisions 10 3,490 3,291

Other Liabilities 6,7 162 136

Total Current Liabilities 5,012 4,714

Non-Current Liabilities

Provisions 10 1,785 1,770

Total Non-Current Liabilities 1,785 1,770

TOTAL LIABILITIES 6,797 6,484

NET ASSETS 35,026 22,454

EQUITY

Asset Revaluation Reserve 13a 7,845 2,243

General Reserve 13a - 54

Contributed Capital 13b 13,288 12,938

Accumulated Surplus/(Deficit) 13c 13,893 7,219

TOTAL EQUITY 13d 35,026 22,454



FinanceFinance

Balance Sheet as at 30 June 2006Notes Total

2006$’000

Total 2005$’000

Cash Flow Statement for the year ended 30 June 2006Notes Total

2006$’000

Inflows/(Outflows)

Total 2005$’000

Inflows/(Outflows)


FinanceFinance

Statement of Recognised Income and Expense for the year ended 30 June 2006

Gain on Asset Revaluation 13a 5,602 -

NET INCOME RECOGNISED DIRECTLY IN EQUITY 5,602 -

Net result for the Year 6,620 95

TOTAL RECOGNISED INCOME AND EXPENSE FOR THE YEAR 12,222 95


Notes Total 2006$’000

Total 2005$’000

Note 1: Statement of Significant Accounting PoliciesThe general purpose financial report has been prepared on an accrual basis in accordance with the Financial Management Act 1994, Accounting Standards issued by the Australian Accounting Standards Board, and Urgent Issues Group Interpretations. Accounting standards include Australian equivalents to International Financial Reporting Standards (A-IFRS). The financial statements were authorised for issue by Geoff Iles, Chief Executive Officer on 21 September, 2006.

Basis of preparationThe financial report is prepared in accordance with the historical cost convention, except for certain assets and liabilities which, as noted are at valuation. Cost is based on the fair values of the consideration given in exchange for assets.

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by management in the application of A-IFRS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed throughout the notes in the financial statements.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The Health Service changed its accounting policies on 1 July 2004 to comply with A-IFRS. The transition to A-IFRS is accounted for in accordance with Accounting Standard AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards, with 1 July 2004 as the date of transition. An explanation of how the transition from superseded policies to A-IFRS has affected the Health Service’s financial position, financial performance and cash flows is discussed in Note 23.

The Health Service has elected to apply Accounting Standard AASB 2005-04 Amendments to Accounting Standards (June 2005), even though the Standard is not required to be adopted until annual reporting periods beginning on or after 1 January 2006.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2006, the comparative information presented in these financial statements for the year ended 30 June 2005, and in the preparation of the opening A-IFRS balance sheet at 1 July 2004, the Health Service’s date of transition, except for the accounting policies in respect of financial instruments. The Health Service has not restated comparative information for financial instruments, including derivatives, as permitted under the first-time adoption transitional provisions. The accounting policies for financial instruments applicable to the comparative information and the impact of the changes in these accounting policies is discussed further in note 1(y).

(a) Reporting EntityThe financial statements include all the controlled activities of the Colac Area Health. Colac Area Health is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” entities under the Australian equivalents to IFRS.

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

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

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

Notes to and forming part of the Financial Statements for the year ended 30 June 2006


Finance

53

Finance

- inventories;- assets arising from construction contracts;- assets arising from employee benefits;- financial instrument assets;- non current assets held for sale.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written off by a charge to the operating statement except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future expected cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

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

(l) ProvisionsProvisions are recognised when the Colac Area Health has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows.

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

(n) Goods and Services TaxRevenues, expenses and assets are recognised net of GST, except for receivables and payables which are stated with the amount of GST included and except, where the amount of GST incurred is not recoverable, in which case GST is recognised as part of the cost of acquisition of an asset or part of an item of expense or revenue. GST receivable from and payable to the Australian Taxation Office (ATO) is included in the Balance Sheet. The GST component of a receipt or payment is recognised on a gross basis in the Cash Flow Statement in accordance with AASB 107 Cash Flow statements.

(o) Employee BenefitsProvision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Measurement of short-term and long-term employee benefitsShort-term employee benefits are those benefits that are expected to be settled within 12 months, and are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. They include wages and salaries, sick leave, annual leave, long service leave and accrued days off that are expected to be settled within 12 months.

Long-term employee benefits are those benefits that are not expected to be settled within 12 months, and are measured at the present value of the estimated future cash outflows to be made by Colac Area Health in respect of services provided by employees up to reporting date. They include long service leave and annual leave not expected to be settled within 12 months.

The present value of long-term employee benefits is calculated in accordance with AASB119 Employee Benefits. Long-term employee benefits are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using interest rates on national Government guaranteed securities with terms to maturity that match, as closely as possible, the estimated future cash outflows.

Classification of employee benefits as current and non-current liabilitiesEmployer benefit provisions are reported as current liabilities where Colac Area Health does not have an unconditional right to defer settlement for at least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term benefits, that are measured at nominal values, and long-term benefits, that are measured at present values.

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

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

The Health Service classifies its other investments in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends on the purpose for which the investments where acquired. Management determines the classification of its investments at initial recognition.

Investments held for trading purposes are classified as current assets and are stated at fair value, with any resultant gain or loss recognised in profit or loss. Where Colac Area Health has the positive intent and ability to hold investments to maturity, they are stated at amortised cost less impairment loss.

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

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

(g) Non Current Physical AssetsLand and buildings are measured at the amounts for which assets could be exchanged between knowledgeable willing parties in an arm’s length transaction. Plant, equipment and vehicles are measured at cost.

(h) Revaluations of Non-Current AssetsAssets other than those that are carried at cost are revalued with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value. The revaluation process normally occurs every three to four years for assets with useful lives of less than 30 years or six to eight years for assets with useful lives of 30 or greater years. Revaluation increments or decrements arise from differences between an asset’s depreciated cost or deemed cost and fair value.

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

Revaluation decrements are recognised immediately as expense in the net result, except that, to the extent, that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes. Revaluation reserves are not transferred to accumulated funds on derecognition of the relevant asset.

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

The following table indicates the expected useful lives of non current assets on which the depreciation charges are based. 2006 2005 Buildings Up to 50 years Up to 50 years Plant and Equipment Up to 20 years Up to 20 years

(j) Impairment of AssetsIntangible assets with indefinite useful lives are tested annually as to whether their carrying value exceeds their recoverable amount. All other assets are assessed annually for indications of impairment, except for:

Notes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006

55

Finance


Finance Notes to and forming part of the Financial Statements for the year ended 30 June 2006

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

Grants are recognised as revenue when the Hospital gains control of the underlying asset. Where grants are reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are recognised as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal depending on the terms of the grant.

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

Patient FeesPatient fees are recognised as revenue at balance date.

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

(u) Fund AccountingThe Hospital operates on a fund accounting basis and maintains two funds: Operating and Capital funds. The Hospital’s Capital Fund includes unspent capital donations and receipts from fundraising activities conducted solely in respect of this fund.

(v) Services Supported by Health Services Agreement and Services Supported by Hospital and Community InitiativesThe activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Human Services and includes RACS, while Services Supported by Hospital and Community Initiatives (Non HSA) are funded by Colac Area Health’s own activities or local initiatives.

(w) Comparative InformationWhere necessary the previous year’s figures have been reclassified to facilitate comparisons.

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

(y) Financial Instruments - Adoption of AASB 132 and AASB 139Colac Area Health has elected not to restate comparative information for financial instruments within the scope of AASB 132 Financial Instruments: Presentation and Disclosure and AASB 139 Financial Instruments: Recognition and Measurement, as permitted on the first - time adoption of A - IFRS. The accounting policies applied to accounting for financial instruments in the current financial year are detailed in notes (c), (f) and (k).

(z) Net result From Continuing Operations Before Capital & Specific ItemsA-IFRS allows the inclusion of additional subtotals on the face of the operating statement when such presentation is relevant to an entity’s financial performance. This financial report includes an additional subtotal entitled “Net result From Continuing Operations Before Capital & Specific Items”.

Capital and specific items, which are excluded from this sub-total, comprise:Capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment. Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.

Specific income/expense, comprises the following items, where material:Voluntary departure packagesWrite-down of inventoriesNon-current asset revaluation increments/decrementsDiminution in investmentsRestructuring of operations (disaggregation/aggregation of health services)Litigation settlementsNon-current assets lost or foundForgiveness of loansReversals of provisionsVoluntary changes in accounting policies (which are not required by an accounting standard or other authoritative pronouncement of the Australian Accounting Standards Board)Impairment of non-current assets, includes all impairment losses (and reversal of previous impairment losses), related to non current assets only which have been recognised in accordance with note 1(j)Depreciation and amortisation, as described in note 1(i) and (s)Expenditure using capital purpose income, which comprises expenditure using capital purpose income which falls below the asset capitalisation threshold and therefore does not result in the recognition of an asset in the balance sheet. The asset capitalisation threshold is set at $1000 (2005:$1000).

Notes to and forming part of the Financial Statements for the year ended 30 June 2006

Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non vested long service leave (ie where the employee does not have a present entitlement to the benefit) that do not qualify for recognition as a current liability, and are measured at present values.

SuperannuationDefined contribution plans

Contributions to defined contribution superannuation plans are expensed when incurred.Defined benefit plans

The amount charged to the Operating Statement in respect of defined benefit plan superannuation represents the contributions made by Colac Area Health to the superannuation plan in respect to the current services of current Colac Area Health staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

Colac Area Health does not recognise any defined benefit liability in respect of the superannuation plan because Colac Area Health has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance has assumed responsibility for the defined benefit liability of Colac Area Health and administers and discloses the State’s defined benefit liabilities in its financial report.

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

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

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

Finance costs include:- interest on bank overdrafts and short term and long term borrowings:- amortisation of discounts or premiums relating to borrowings:- amortisation of ancillary costs incurred in connection with the arrangement of borrowings:- finance charges in respect to finance leases recognised in accordance with AASB 117 Leases.The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the weighted average interest rate applicable to Colac Area Health’s outstanding borrowing during the year.

(q) Residential Aged Care ServicePolwarth House and Otway Pioneer Residential Aged Care facilities operations are an integral part of Colac Area Health and share its resources. An apportionment of land and buildings has been made based on floor space. The results of the two operations have been segregated based on actual revenue earned and expenditure incurred by each operation.(r) Intersegment TransactionsTransactions between segments with Colac Area Health have been eliminated to reflect the extent of the Health Service’s operations as a group.

(s) Leased Property and EquipmentA distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains all risks and benefits. Assets held under a finance lease are recognised as non current assets at their fair value or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The minimum lease payments are discounted at the interest rate implicit in the lease.

A corresponding liability is established and each lease payment is allocated between the principal component and the interest expense. Finance leased assets are amortised on a straight line basis over the estimated useful life of the asset. Operating lease payments are representative of the pattern of benefits derived from the leased assets and accordingly are expensed in the periods in which they are incurred.

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


Finance

Note

2a:

Ana

lysis

of R

even

ue b

y Sou

rce

Rev

enu

e fr

om S

ervi

ces

Su

pp

orte

d b

y H

ealt

h

Ser

vice

s A

gree

men

t

Gov

ern

men

t G

rant

s

• D

epar

tmen

t of

Hu

man

Ser

vice

s 13

,742

13

,132

1,

661

1,67

1 66

4 63

0 3,

052

2,98

9 -

- 19

,119

18

,422

• D

enta

l Hea

lth

Ser

vice

s V

icto

ria

- -

- -

- -

469

475

- -

469

475

Ind

irec

t C

ontr

ibut

ion

s by

Dep

t. o

f H

um

an S

ervi

ces

• L

ong

Ser

vice

Lea

ve

20

218

8 10

8 -

2 -

36

- -

28

364

• In

sura

nce

378

310

46

90

23

6 85

49

-

- 53

2 45

5

Pat

ient

and

Res

iden

t F

ees

(ref

er N

ote

2d)

762

847

3,63

7 3,

362

- -

106

81

- -

4,50

5 4,

290

Cap

ital

Pu

rpos

e In

com

e -

- 8,

501

1,32

2 -

- -

- -

- 8,

501

1,32

2

Inte

rest

32

40

4

5 -

- 9

12

- -

45

57

Oth

er R

even

ue

668

769

- -

- -

213

209

- -

881

978

Net

Gai

n/(

Los

s) o

n D

ispo

sal o

f N

on-C

urr

ent

Ass

ets

-

- -

- -

- -

- 2

- 2

-(r

efer

Not

e 2d

)

Su

b-T

ota

l Rev

enu

e fr

om S

ervi

ces

Su

pp

orte

d b

y

15,6

02

15,3

16 1

3,85

7 6,

558

687

638

3,93

4 3,

851

2 -

34,0

82

26,3

63H

ealt

h S

ervi

ces

Agr

eem

ent

Rev

enu

e fr

om S

ervi

ces

Su

pp

orte

d b

y H

osp

ita

l a

nd

Com

mu

nit

y In

itia

tive

s

Don

atio

ns

and

Beq

uest

s -

- -

- -

- -

- 33

1 42

0 33

1 42

0

Pro

pert

y In

com

e -

- -

- -

- -

- 85

93

85

93

Su

b-T

ota

l Rev

enu

e fr

om S

ervi

ces

Su

pp

orte

d b

y

- -

- -

- -

- -

416

513

416

513

Hos

pit

al a

nd

Com

mu

nit

y In

itia

tive

s

Tot

al R

even

ue

from

Op

erat

ion

s 15

,602

15

,316

13,

857

6,55

8 68

7 63

8 3,

934

3,85

1 41

8 51

3 34

,498

26

,876

Acu

teH

ealt

h20

06$’

000

Acu

teH

ealt

h20

05$’

000

RA

C

2006

$’00

0

RA

C

2005

$’00

0

Age

dC

are

2006

$’00

0

Age

dC

are

2005

$’00

0

Pri

mar

yH

ealt

h20

06$’

000

Pri

mar

yH

ealt

h20

05$’

000

Oth

er

2006

$’00

0

Oth

er

2005

$’00

0

Tot

al

2006

$’00

0

Tot

al

2005

$’00

0

Finance

Note 2: Revenue

Revenue from Operating Activities

Recurrent

Government Contributions

• Department of Human Services 19,119 18,422 - - 19,119 18,422

• Dental Health Services Victoria 469 475 - - 469 475

Indirect Contributions by Human Services

• Long Service Leave 28 364 - - 28 364

• Insurance 532 455 - - 532 455

Patient and Resident Fees (refer Note 2c) 4,505 4,290 - - 4,505 4,290

Other Revenue 926 1,035 - - 926 1,035

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

Sub-Total Revenue from Operating Activities 25,579 25,041 2 - 25,581 25,041

Revenue from Non-Operating Activities

Donations and Bequests - - 331 420 331 420

Property Income - - 85 93 85 93

Sub-Total Revenue from Non-Operating Activities - - 416 513 416 513

Revenue from Capital Purpose Income

State Government Capital Grants 8,501 1,322 - - 8,501 1,322

Sub-Total Revenue from Capital Purpose Income 8,501 1,322 - - 8,501 1,322

Total Revenue from Continuing Operations 34,080 26,363 418 513 34,498 26,876

Indirect contributions by Human Services

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

H.S.A.

2006 $’000

H.S.A.

2005 $’000

NonH.S.A.

2006 $’000

Non H.S.A.2005 $’000

Total

2006 $’000

Total

2005 $’000



FinanceFinance

Patient and Resident Fees Raised

Recurrent:

Acute

• Inpatients 630 723

• Outpatients 132 120

Residential Aged Care

• Nursing Homes 3,486 3,246

Primary Health Care

• Community Rehabilitation Centre 8 4

• Primary Care 62 42

• Dental 36 39

Total Recurrent 4,354 4,174

Capital Purpose

Residential Accommodation Payments 151 116

Total Capital 151 116

Total Patient Fees 4,505 4,290

Proceeds from Disposal-Motor Vehicles 65 184

Proceeds from Disposal-Land and Buildings - 300

Proceeds from Disposal-Plant and Equipment - 2

Total Proceeds from the Sale of Non-Current Assets 65 486

Less Written Down Value of Assets Sold-Motor Vehicles (63) (167)

Total Written Down Value of Non-Current Assets Sold (63) (508)

Net Gains/(Losses) on Disposal of Non-Current Assets 2 (22)

Note 2c: Patient and Resident Fees

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

Total

2006 $’000

Total

2005 $’000

Total

2006 $’000

Total

2005 $’000

Note 3: Depreciation Total

2006 $’000

Total

2005 $’000

Note

2b:

Ana

lysis

of E

xpen

ses b

y Sou

rce

Ser

vice

s S

uppo

rted

by

Hea

lth

Ser

vice

s A

gree

men

t

Em

ploy

ee B

enefi

ts

- Sa

lari

es a

nd W

ages

9,

044

8,8

78

3,78

4 3,

64

3 52

7 41

8 2,

677

2,3

35

- -

16,0

32

15,2

74

- W

orkC

over

21

6 2

00

92

87

13

17

64

50

- -

385

354

- L

ong

Serv

ice

Lea

ve

256

173

82

90

18

19

30

51

- -

386

333

- Su

pera

nnua

tion

(re

fer

Not

e 16

) 97

4 1,

04

6 35

1 36

8 70

67

22

7 18

8 -

- 1,

622

1,66

9

Non

Sal

ary

Lab

our

Cos

ts

- F

ee fo

r Se

rvic

e M

edic

al O

ffice

rs

1,81

7 1,

628

- -

- -

- -

- -

1,81

7 1,

628

Supp

lies

and

Con

sum

able

s

- P

harm

aceu

tica

l Sup

plie

s 40

6 41

8 15

10

16

13

10

6

- -

447

447

- M

edic

al a

nd S

urgi

cal S

uppl

ies

1,41

6 87

5 11

4 10

7 26

2

4 18

3 21

1 -

- 1,

739

1,21

7

- P

atho

logy

Sup

plie

s 14

3 16

6 -

- -

- -

- -

- 14

3 16

6

- F

ood

Supp

lies

246

234

323

318

1 1

25

14

- -

595

567

Oth

er E

xpen

ses

- D

omes

tic

Serv

ices

31

3 31

1 10

6 10

2 1

1 20

2

0 -

- 44

0 4

34

- A

dmin

istr

ativ

e E

xpen

ses

415

60

4 25

9 22

3 7

33

665

628

- -

1,34

6 1,

488

- M

otor

Veh

icle

Exp

ense

s 48

45

-

- 15

13

42

36

-

- 10

5 94

- R

epai

rs a

nd M

aint

enan

ce

256

269

90

76

- 3

38

38

- -

384

386

- P

atie

nt T

rans

port

99

53

-

- -

- -

- -

- 99

53

- In

sura

nce

cost

s fu

nded

by

DH

S 28

2 22

8 12

8 11

5 5

2 11

7 11

0 -

- 53

2 45

5

- C

orpo

rate

Cos

ts -

Lea

ve L

iabi

litie

s 20

18

2 8

102

- -

- 8

0 -

- 28

36

4

- F

uel,

Lig

ht, P

ower

and

Wat

er

213

210

83

83

7 7

15

10

- -

318

310

Sub

-Tot

al E

xpen

ses

from

Ser

vice

s S

uppo

rted

by

Hea

lth

16,1

64

15,5

20

5,43

5 5,

324

706

618

4,11

3 3,

777

- -

26,4

18

25,2

39S

ervi

ces

Agr

eem

ent

Ser

vice

s S

uppo

rted

by

Hos

pita

l and

Com

mu

nit

yIn

itia

tive

s

Rep

airs

and

Mai

nten

ance

-

- -

- -

- -

- 21

3 25

5 21

3 25

5

Sub

-Tot

al E

xpen

ses

from

Ser

vice

s S

uppo

rted

by

- -

- -

- -

- -

213

255

213

255

Hos

pita

l and

Com

mu

nit

y In

itia

tive

s

Dep

reci

atio

n (r

efer

Not

e 3)

67

7 77

5 27

0 29

3 27

-

261

186

- -

1,23

5 1,

254

Aud

it F

ees

7 6

3 3

- -

2 2

- -

12

11

Net

Los

s on

Sal

e of

Ass

ets

Sold

(re

fer

Not

e 2d

) -

- -

- -

- -

- -

22

- 22

Tot

al E

xpen

ses

from

Con

tinu

ing

Ope

rati

ons

16,8

48

16,3

01

5,70

8 5,

620

733

618

4,37

6 3,

965

213

277

27,8

78

26,7

81

Acu

teH

ealt

h20

06$’

000

Acu

teH

ealt

h20

05$’

000

RA

C

2006

$’00

0

RA

C

2005

$’00

0

Age

dC

are

2006

$’00

0

Age

dC

are

2005

$’00

0

Pri

mar

yH

ealt

h20

06$’

000

Pri

mar

yH

ealt

h20

05$’

000

Oth

er

2006

$’00

0

Oth

er

2005

$’00

0

Tot

al

2006

$’00

0

Tot

al

2005

$’00

0

Buildings 659 629

Plant and Equipment 576 625

Total 1,235 1,254



FinanceFinance

Note 6: Other Financial Assets Total2006 $’000

Total2005 $’000

OperatingFund$’000

For the purpose of the Cash Flow Statement, the Service considers cash to include cashon hand and in banks, and short-term deposits which are readily convertible to cash onhand, and are subject to an insignificant risk of change of value, net of outstanding bank overdrafts.

CASH ASSETS

Cash on Hand 1 1

Cash at Bank 1,484 473

Deposits at Call - 78

Total 1,485 552

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement) 1,485 552

Current

Patient Fees 232 260

Trade Debtors 584 537

Total 816 797

Less Provision for Doubtful Debts

Patient Fees 17 21

Total Current Receivables 799 776

Non-Current

Department of Human Services - Long Service Leave 677 1,482

Total Non-Current Receivables 677 1,482

Total 1,476 2,258

Note 4: Cash and Cash Equivalents

Note 5: Receivables

Total

2006 $’000

Total

2005 $’000

Total

2006 $’000

Total

2005 $’000

61

Current

Monies Held in Trust (refer Note 7) 162 162 136

Represented by:

Current

Term Deposits and Cash at Bank 162 136

Total 162 136

Current

Polwarth House Trust Account 98 77

Salary Packaging Account 64 59

Total 162 136

Represented by

Cash Assets 162 136

Total 162 136

Current

Pharmaceuticals 52 46

Catering Supplies 11 8

Housekeeping Supplies 12 14

Medical and Surgical Lines 83 60

Engineering Stores 1 1

Administration Stores 8 8

Total 167 137

Current

Trade Creditors 865 891

GST Payable 495 396

Total 1,360 1,287

Note 7: Monies Held in Trust

Note 8: Inventory

Note 9: Payables

Total2006 $’000

Total2005 $’000

Total2006 $’000

Total2005 $’000

Total2006 $’000

Total2005 $’000

Total2006 $’000

Total2005 $’000



FinanceFinance

At Cost

Buildings - 110

Buildings under Construction 8,832 1,767

8,832 1,877

Motor Vehicles 729 725

Less Accumulated Depreciation 239 132

490 593

Plant and Equipment 5,840 5,209

Less Accumulated Depreciation 3,034 2,444

2,806 2,765

Total 12,128 5,235

At Valuation

Crown Land 2,210 1,654

Freehold Land 955 910

Buildings 28,288 22,409

Less Accumulated Depreciation 5,293 4,636

22,995 17,773

Total 26,160 20,337

Total Property, Plant and Equipment 38,288 25,572

A formal valuation of Land and Buildings was completed at 30 June 2006 by Landlink Property Group. The basis of the valuation for Buildings is depreciated

replacement cost whilst the basis of valuation for Land is Surrounding Property Values. Reconciliation of the carrying amounts of each class of land, buildings,

plant and equipment and motor vehicles at the beginning and end of the current and previous financial year are set out as follows:

2006

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

Additions - - 7,834 471 109 8,414

Disposals - - - - 65 65

Depreciation expense (Note 3) - - 658 430 147 1,235

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

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

Note 12: Property, Plant and Equipment Total2006 $’000

Total2005 $’000

MotorVehicles

$’000

Total

$’000

Plant andEquipment

$’000

Buildings

$’000

FreeholdLand$’000

CrownLand$’000

Current

Employee Benefits (refer Note 10a) 3,366 3,291

Provision for Re-instatement 124 -

Total 3,490 3,291

Non-Current

Employee Benefits (refer Note 10a) 1,785 1,770

Total 1,785 1,770

Current (Refer Note 10)

Long Service Leave

– Short term benefits at nominal value 1,007 998

– Long term benefits at present value 365 360

Total 1,372 1,358

Annual Leave at nominal value 1,459 1,422

Accrued Wages and Salaries 506 481

Accrued Days Off 29 30

Total 3,366 3,291

Non-Current

Long Service Leave 1,785 1,770

Total 1,785 1,770

Movement in Long Service Leave

Balance 1 July 2005 3,128 2,764

Provision made during the year 415 691

Settlement made during the year (386) (327)

Balance at 30 June 2006 3,157 3,128

Aggregate Lease Expenditure contracted for at Balance Date

Operating Lease

Not later than One Year 24 139

Later than One but not later than Five Years 120 87

Total 144 226

Leasing of computer equipment commenced in 2003. Lease period is for three years with lease payments paid quarterly in advance. At the end of the leases, there is an option to purchase the equipment at an agreed residual value. There are no financial restrictions or contingent rental payments incorporated into the lease agreements by the lessor. The interest rates were fixed at the commencement of the leases at the current market rates.

Note 10: Provisions

Note 10a: Employee Benefits

Note 11: Lease Liabilities

Total2006 $’000

Total2005 $’000

Total2006 $’000

Total2005 $’000

Total2006 $’000

Total2005 $’000



FinanceFinance

Net Result for the Year 6,621 95

Non-Cash Movement

Depreciation 1,235 1,254

Contribution Joint Venture (SWARH) 283 -

Contribution of Non-Current Asset 124 -

Net Gain/(Loss) from Sale of Plant and Equipment 2 (22)

Provision for Doubtful Debts (4) -

Change in Operating Assets and Liabilities

Increase/(Decrease) in Payables 108 (629)

Increase/(Decrease) in Employee Benefits 89 381

Decrease/(Increase) in Inventory (30) (4)

Decrease/(Increase) in Receivables 782 (502)

Decrease/(Increase) in Prepayments - 27

Net Cash Inflow/(Outflow) from Operating Activities 9,210 600

Note 14: Reconciliation of Net Result for the year to Net Cash Flows from/(used in) Operating Activities Total

2006 $’000

Total2005 $’000

Note 15: Contingent Liabilities/AssetsA contingent liability exists in relation to payments for Visiting Medical Officer superannuation contributions. Should the Court determine this to be a financial

liability the estimated cost to the Service is $1,079,900. A contingent asset exists in respect to a Bequest from an Estate in which Colac Area Health has been

named as a residual beneficiary. Colac Area Health is receiving income from the Estate and fifty percent of the capital of the Estate is receivable on the death of

life tenants.

2005

Balance at 1 July 2004 1,654 910 18,961 2,536 500 24,561

Additions - - 1,833 597 393 2,823

Disposals - - 341 - 167 508

Depreciation expense (Note 3) - - 629 492 133 1,254

Joint Venture Consolidations - - (174) 124 - (50)

Balance at 30 June 2005 1,654 910 19,650 2,765 593 25,572

(a) Reserves

Asset Revaluation Reserve

Land

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

Revaluation Increment 601 -

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

Buildings


Revaluation Increment 5,001 -

Balance at the end of the reporting period 6,135 1,134

Total Asset Revaluation Reserve 7,845 2,243

General Purpose Reserve

Balance at the beginning of the reporting period 54 50

Transfers to and from General Reserve (54) 4

Balance at the end of the reporting period - 54

Total Reserves 7,845 2,297

(b) Contributed Capital


Capital Contribution received from Victorian Government 350 -


(c) Accumulated Surpluses


Net Result for the Year 6,620 95

Transfers to and from General Reserve 54 (4)

Adjustments resulting from investment in Joint Venture using equity Method - 160


(d) Equity

Total Equity at the beginning of the reporting period 22,454 22,199

Total Changes in Equity Recognised in the Statement of Revenue and Expense 12,222 255

Transactions with State Government 350 -

Total Equity at reporting date 35,026 22,454

Note 13: Equity and Reserves Total2006 $’000

Total2005 $’000

MotorVehicles

$’000

Total

$’000

Plant andEquipment

$’000

Buildings

$’000

FreeholdLand$’000

CrownLand$’000



Note 17: Responsible Persons Related Disclosures

2006 2005

FinanceFinance

(b) Remuneration of Responsible PersonsThe number of Responsible Persons are shown in their relevant bands:

Income Band

$0-$9,999 11 11

$140,000-$149,999 - 1

$150,000-$159,999 1 -

Total Numbers 12 12

Total Remuneration received or due and receivable by Responsible

Persons from the reporting entity amounted to: $156,500 $146,250

(c) Retirement Benefits of Responsible PersonsNo retirement benefits were paid or payable to Responsible Persons.

(d) Other Transactions of Responsible Persons and their Related PartiesOther Responsible Persons transactions requiring disclosure under the Directions of the Minister for Finance have beenexamined and are as follows:

Ms. D. Loubey was an Executive Officer of a Group Practice which provided medical services to the Service to the value of $446,505. These services were provided within a normal supplier relationship and are at arms length.

Mr. W.G. O’Brien was a Director of a Company which provided accounting services to the Service to the value of $341.These services were provided within a normal supplier relationship and are at arms length.

(e) Executive Officers RemunerationThe number of Executive Officers, other than the Ministers and Accountable Officers, and their total remuneration duringthe reporting period are shown as follows in their relevant income bands.

Income Band

2006 2005 2006 2005

No. No. No. No.

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

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

1 - 1 -

Total Remuneration Base Remuneration

Note 16: SuperannuationSuperannuation contributions for the reporting period are included as part of salaries and associated costs in the Operating Statement of the Service.

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

Contribution for the Year

Fund

Health Super Fund 1,554 1,657

Guildsuper - 5

Hesta Super Fund 68 7

Total 1,622 1,669

Contribution Outstanding at Year End

Fund

Health Super Fund 76 83

Hesta Super Fund 2 1

Total 78 84

Total2006 $’000

Total2005 $’000

Total2006 $’000

Total2005 $’000

The basis for contributions are determined by the various schemes. The unfunded superannuation liability in respect to members of State Superannuation

Schemes and Health Super Scheme is not recognised in the Balance Sheet. Colac Area Health’s total unfunded superannuation liability in relation to these

funds has been assumed by and is reflected in the financial statements of the Department of Treasury and Finance.

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

All employees of the Agency are entitled to benefits on retirement, disability or death from the Government Employees Super Fund. This Fund provides

defined lump sum benefits based on years of service and annual average salary.

a) Responsible Persons

Minister for Health

Hon. Bronwyn Pike MLA Minister for Health

Directors

Mr. A.F. Baldwin Mr. A.E. Graham Mr. G.A. Johnstone

Mrs. D.E. Loubey (to 31/10/2005) Ms. K. McBride Mrs. A. McDonald

Mr. W.D. McKean (to 31/10/2005) Mr. W.G. O’Brien Mr. R.V. Riordan

Mr. W.J. Ryan (from 01/11/2005)

Accountable Officer

Ms. J. Ross - Chief Executive



Interest rate exposure as at 30 June 2005 Fixed Interest Rate Maturing in:

Financial Assets

Cash Assets 474 78 - 552

Receivables - - 2,258 2,258

Other Financial Assets - - 136 136

Total Financial Assets 474 78 2,394 2,946

Financial Liabilities

Payables - - 1,287 1,287

Monies Held in Trust - - 136 136

Total Financial Liabilities - - 1,423 1,423

Net Financial Assets 474 78 971 1,523

Weighted Average Intereste Rate-Financial Assets 5.00% 5.20%

(b) Credit Risk Exposures

Credit risk represents the loss that would be recognised if counterparts fail to meet their obligations under the respective

contracts at maturity. The credit risk on financial assets of the Service have been recognised in the Statement of Financial

Position as the carrying amount, net of any provision for doubtful debts. The Service minimises concentrations of credit risk by

undertaking transactions with unrelated debtors. The Service is not materially exposed to any individual debtor.

(c) Net Fair Value of Financial Assets and Liabilities

The carrying amount of financial assets and liabilities contained within these financial statements is representative of the net fair

value of each financial asset or liability.

Net Fair Value

Financial Assets

Cash Assets 1,485 1,485 552 552

Receivables 1,476 1,476 2,258 2,258

Other Financial Assets 162 162 136 136

Total Financial Assets 3,123 3,123 2,946 2,946


Payables 1,360 1,360 1,287 1,287

Monies Held in Trust 162 162 136 136

Total Financial Liabilities 1,522 1,522 1,423 1,423

Non-InterestBearing$’000

Total2005

$’000

1 Yearor Less

$’000

FloatingInterest

Rate$’000

BookValue2005$’000

Net FairValue2005$’000

Net FairValue2006$’000

BookValue2006$’000

FinanceFinance

(a) Interest Rate Risk

The Service’s exposure to interest rate risk and the effective weighted average interest rate by maturity periods is set out below

in the following timetable. For interest rates applicable to each class of asset or liability refer to individual notes to the Financial

Statements. Exposure arises predominately from assets and liabilities bearing variable interest rates.

Interest rate exposure as at 30 June 2006 Fixed Interest Rate Maturing in:

Financial Assets

Cash Assets 1,485 - - 1,485

Receivables - - 1,476 1,476

Other Financial Assets - - 162 162

Total Financial Assets 1,485 - 1,638 3,123


Payables - - 1,360 1,360

Monies Held in Trust - - 162 162

Total Financial Liabilities - - 1,522 1,522

Net Financial Assets 1,485 - 116 1,601

Weighted Average Interest Rate-Financial Assets 5.00%

Note 19: Financial Instruments

Non-InterestBearing

$’000

Total2006

$’000

1 Yearor Less

$’000

FloatingInterest

Rate$’000

Note 18: SWARH Joint Venture Colac Area Health has a joint venture interest in the South West Alliance of Rural Health (SWARH) whose principal activity is the

implementing and processing of an information technology system and an associated telecommunications service suitable for use by each

member of SWARH.

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

Current Assets 74 135

Non-Current Assets 258 211

Share of Total Assets 332 346

Current Liabilities 87 63

Share of Total Liabilities 87 63

Net Share of Joint Venture Assets 245 283

Share of Current Year Profit/(Loss) (38) (35)

Capital Commitments 61 -

Total2006 $’000

Total2005 $’000



Audit Fees paid or payable to the Victorian Auditor-General’s Office for

audit of the Service’s Financial Report

Paid as at 30 June 4 2

Payable as at 30 June 8 11

The Board of Directors of the Service have agreed to a $14,000,000 redevelopment of the aged care facilities.The redevelopment commenced in April 2005 and is expected to be completed in July 2006.As at 30 June 2006 the balance due on the contract was $2,403,407.

Note 20: Remuneration of Auditors

Note 21: Capital Commitment

Total2006$’000

Total2005 $’000

REVENUE

External Segment Revenue 15,602 15,316 5,356 5,236 3,934 3,851 9,606 2,473 34,498 26,876

Total Revenue 15,602 15,316 5,356 5,236 3,934 3,851 9.606 2,473 34,498 26,876

RESULT

Segment Result (1,240) (990) (356) (389) (451) (126) 8,660 1,578 6,613 73

Net Result from Ordinary (1,240) (990) (356) (389) (451) (126) 8,660 1,578 6,613 73Activities

Interest Income 32 40 4 5 9 12 - - 45 57

Share of Net Result of Joint Venture using the Equity Model (38) (35) - - - - - - (38) (35)

Net Result for Year (1,246) (985) (352) (384) (442) (114) 8,660 1,578 6,620 95

OTHER INFORMATION

Segment Assets 20,645 19,614 15,215 3,999 5,876 5,210 87 115 41,823 28,938

Total Assets 20,645 19,614 15,215 3,999 5,876 5,210 87 115 41,823 28,938

Segment Liabilities 4,462 4,281 1,306 1,292 860 774 169 137 6,797 6,484

Total Liabilities 4,462 4,281 1,306 1,292 860 774 169 137 6,797 6,484

Investments in associates and jointventure partnership 245 283 - - - - - - 245 283

Acquisition of Property, Plant andEquipment 529 1,026 7,496 1,462 389 289 - 46 8,414 2,823

Depreciation Expense 677 775 270 293 261 186 27 - 1,235 1,254

Non Cash Expense other than 50 227 9 94 6 60 1 11 66 392Depreciation

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

Business Segments

Hospital

Residential Aged Care Services (RACS)

Primary Care

Other

Geographical Segment

Colac Area Health operates predominantly in the Colac Otway Region of Victoria.

More than 90% of revenue, net surplus from ordinary activities and segment assets relate to operations in Colac, Victoria.

Total

2006$’000

Total

2005$’000

Other

2005$’000

Other

2006$’000

PrimaryCare2005$’000

PrimaryCare2006$’000

RACS

2005$’000

Hospital

2005$’000

RACS

2006$’000

Hospital

2006$’000

Note 22: Segment Reporting

FinanceFinance

Services

Acute Health

Aged Care

Primary and Community Care Programs

Home Nursing and Capital Fundraising


ASSETS

Current Assets

Cash and Cash Equivalents 642 (90) 552

Receivables 815 (39) 776

Other Financial Assets 136 - 136

Inventory 137 - 137

Prepayments 6 (6) -

Total Current Assets 1,736 (135) 1,601

Non-Current Assets

Investment in Joint Venture using Equity Method - 283 283

Receivables 1,482 - 1,482

Property, Plant and Equipment 25,622 (50) 25,572

Total Non-Current Assets 27,104 233 27,337

TOTAL ASSETS 28,840 98 28,938

LIABILITIES

Current Liabilities

Payables 1,330 (43) 1,287

Provisions 2,202 1,089 3,291

Other Liabilities 136 - 136

Total Current Liabilities 3,668 1,046 4,714

Non-Current Liabilities

Provisions 2,878 (1,108) 1,770

Total Non-Current Liabilities 2,878 (1,108) 1,770

TOTAL LIABILITIES 6,546 (62) 6,484

NET ASSETS 22,294 160 22,454

EQUITY

Asset Revaluation Reserve 2,243 - 2,243

General Reserve 54 - 54

Contributed Capital 12,938 - 12,938

Accumulated Surplus/(Deficit) 7,059 160 7,219

TOTAL EQUITY 22,294 160 22,454


Effect ofTransition to A-IFRS

$’000

A-IFRS

$’000

PREVIOUSAGAAP

$’000

EFFECT OF A-IFRS ON THE BALANCE SHEET AS AT 30 JUNE 2005Note: 23 Impacts of the Adoption of Australian Equivalents to Inter-national Financial Reporting Standards

Following the adoption of the Australian equivalents to International Financial Reporting Standards (A-IFRS), Colac Area Health has reported for the first time in compliance with A-IFRS for the financial year ended 30 June 2006.

Under A-IFRS, there are requirements that apply specifically to not-for-profit entities that are not consistent with IFRS requirements. Colac Area Health is established to achieve the objectives of Government in providing services free of charge or at prices significantly below their cost of consumption by the community, which is incompatible with generating profit as a principal objective. Consequently, where appropriate, Colac Area Health applies those paragraphs in Accounting Standards applicable to not-for-profit entities.

Colac Area Health changed its accounting policies, other than its accounting policies for financial instruments on 1 July 2004 to comply with A-IFRS. Colac Area Health changed its accounting policy on 1 July 2005 (refer Note 1). The transition to A-IFRS is accounted for in accordance with Accounting Standard AASB 1 First-time adoption of Australian Equivalents to International Financial Reporting Standards with 1 July 2004 as the date of transition. An explanation of how the transition from superceded policies to A-IFRS has effected Colac Area Health’s financial position, financial performance and cash flows is set out in the following tables and notes that accompany the tables.

FinanceFinance Notes to and forming part of the Financial Statements for the year ended 30 June 2006 Notes to and forming part of the Financial Statements for the year ended 30 June 2006

Auditor-General’s Report



Statutory Compliance


Legislative Changes Based on legislative information received, Colac Area Health has complied with all Acts and Regulations. Legal advice provided on behalf of Victorian Healthcare Association indicates that there is no longer a requirement for public hospitals to include a full list of Acts and Regulations in the Annual Report.

National Competition PolicyColac Area Health complied with all government policies regarding competitive neutrality.

Compliance With Building ActColac Area Health complies with the Building Act 1994 under guidelines for publicly owned buildings issued by the Minister for Finance 1994 in all redevelopment and maintenance issues.• Building Inspections Standards Assessment Colac Area

Health facilities have been the subject of a fire audit by a Fires Services Engineer. The scope of that audit considerably exceeds the scope of an inspection by a Building Surveyor in line with the Minister for Finance’s Guidelines.

• Arrangements Regarding Registered Building Practitioners. The Board of Directors requires all building professionals engaged on building projects to be registered with the Building Practitioners Board or be Registered Architects.

• New Buildings It is required that a building permit be issued at the completion of each building project. That action ensures that new buildings and work in existing buildings conform to building standards and that the ten year liability cap is invoked.

During the year, the following works were undertaken to ensure comformity with the relevant standards.

Building Works NumberOccupancy Permits Issued -Works in construction and the subject of mandatory inspection 1

Maintenance NumberNotices issued for rectification of substituted buildings requiring urgent attention -

ConsultanciesThere was one consultancies totalling $10,092 undertaken at Colac Area Health during the 2005/06 financial year.

Fees and ChargesColac Area Health charges fees in accordance with relevant Department of Human Services directives.

Financial Management Compliance Framework (FMCF)The Financial Management Compliance Framework (FMCF) was introduced from July 1 2003 and applies to all Victorian Public Sector (VPS) entities. The Framework has been established to ensure that all VPS entities have implemented appropriate systems to ensure that public resources are used in an efficient, effective and responsible manner.

Colac Area Health was largely compliant with the framework when it was released and this opinion was endorsed via the Internal Audit Program. Work is continuing to ensure that full compliance is achieved within the specified time frame. Colac Area Health will continue to review its performance, policies and procedures to ensure that the Service is operating in an effective and responsible manner.

Pecuniary InterestMembers of the Board of Directors are required to notify the President of the Board of any pecuniary interest which may give rise to a conflict of interest as defined in accordance with the Directions of the Minister for Finance. All declarations of pecuniary interest have been completed and are available on request to the relevant Minister, Member of Parliament and the public.

Services Contracted OutThe range of Services contracted out has remained unchanged during the 2005/06 financial year.

SponsorsColac Area Health wishes to acknowledge the support of the following organisations for their sponsorship of this production of this Annual Report.

The National Bank is the provider of financial and banking services to Colac Area Health Mr. Rob Cornelissen ManagerNational Australia BankMurray StreetColac Vic 3250Telephone: (03) 5231 5679

BDH Constructions - Building contractor for the Residential Aged Care Redevelopment ProjectMr. Henry BongersDirector110 Main StreetElliminyt Vic 3249Telephone: (03) 5231 5496

Silver Thomas Hanley - Providing Architectural services to Colac Area Health during the Residential Aged Care Redevelopment Project Ms. Ajia ThomasDirector3 Glenarm RoadGlen Iris Vic 3146Telephone: (03) 9885 2333

Research and PublicationsDr Kerry Peart, University of Ballarat; Ms Wendy James, Wimmera Health Care Group, Horsham; Ms Janice Deocampo, Colac Area Health. Use of Sterile Water Injections to relieve back pain in labour. Birth Issues, Vol 15 No 2, 2006; 15 (1): 18-22.

PublicationsAnnual Report 2005Quality of Care Report 2005Community News

AcknowledgementsEditor: Julie Rippon Assisted by: John Scarrott, Gillian NealePhotography: Colac Area Health, South Western Studios, The Standard Deisgn & Production: The Standard

This Annual Report is a public document. It aims to present the performance, services and developments of Colac Area Health during the last financial year in an open and user friendly manner to government and the community. This Report is produced in accordance with Legislative Requirements set by the Minister for Finance and the criteria set by the Australasian Reporting Awards (ARA).

In addition to the Colac Area Health Annual Report, the Quality of Care Report has been produced as a separate document. Copies of both documents can be obtained from Colac Area Health or an electronic copy is available on our website www.colacareahealth.com.au.

77

Colac Area Health

2–28 Connor Street, Colac Vic 3250

Telephone: 03 5232 5100

Facsimile: 03 5232 5199

Email: [email protected]

Website: www.colacareahealth.com.au

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