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Swan Hill District Health Annual Report 2017 I

Annual Report 2017

Swan Hill District Health Annual Report 2017

Swan Hill District Health was established as the Lower Murray District Hospital in 1860.

It was incorporated as the Swan Hill District Hospital on March 11, 1872. The Health Service is now incorporated under Section 31 of the Health Services Act 1988.

NOTE 21A: RESPONSIBLE PERSONS DISCLOSURESIn accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons for the reporting period.

Responsible Ministers for the reporting period were:

The Honourable Jill Hennessy, Minister for Health

Martin Foley MLA, Minister for Mental Health

Martin Foley, MLA, Minister for Housing, Disability and Ageing

Jenny Mikakos MLC, Minister for Families and Children

Four publications are produced which deal with the functions, powers, duties and activities of the Hospital.

i. The Constitution Objects and By-laws.

ii. Strategic Plan.

iii. The Annual Report and Financial Statements.

iv. The Health Service Agreement.

Each is obtainable from Swan Hill District Health.

Above: Monash University fourth year medical students with Dr Ernan Hession in front of the new Swan Hill Primary Health Medical Centre. L-R Runyu Qin, Mahmoud Abd El-Baky, Nicholas Dewhurst, Fraser Tankel, Alexandra Clarke, Rachel Van Zetten, Jessica Paynter, Eugiene Pan.

Front cover: Renal Dialysis / Chemotherapy Services L-R Susan Findlay RN and Jeanille Terrington RN.

Annual Report 2017 Swan Hill District Health 1

ContentsPresident and Chief Executive Officer Report 2

Board of Directors 3

Executive Staff 3

Organisation and Reporting Structure 4

Strategic Plan 2016-19 6

Senior Staff 7

Medical Staff 8

Report of Operations 9

Disclosure Index 12

Statement of Priorities 2016-2017: Part A, B & C Refer Appendices

Financial Statements Refer Appendices

Above: Swan Hill Hospice Committee celebrate funding success – L-R Mavis Wardle, Michael Crowe, Peter Koetsveld, Ted Rayment, Gaynor Hayward.


President and Chief Executive Officer Report

Our Primary Health Medical Centre (PHMC) which opened at the beginning of the financial year is now established as an integral part of Swan Hill District Health (SHDH). Doctors working in the clinic are providing valuable cover for our hospital. Monash University contracted with SHDH to train medical students. A record number of fourth year medical students (8) from Monash University successfully completed their placement and a further 8 commenced in June. A Skin Lesion Clinic was commenced. Midwifery Clinics and specialist obstetrics and gynecology clinics were also established in the facility. The PHMC requires more space to expand its services to include visiting specialists, additional GP’s and other related services. The Board commenced examination of options for expansion close to the hospital or in the hospital.

Our medical workforce was strengthened with increased cover from our Director of Medical Services and recruitment of Manager Medical Services. The Director of Emergency Medicine was appointed in February following extensive recruitment.

We were successful with our submission for capital funding for sub-acute beds. We will receive $2.66 million toward the sub-acute beds. Two hospice beds will be funded by the Swan Hill community. The Hospice Committee galvanised community support and they have raised an amazing $300,000. The Freemasons contributed $35,000 in June 2017 to help achieve this total. The sub-acute beds will be on the first floor of the old vacated Aged Care building above the PHMC.

Headspace management was transferred to our health service from the Murray PHN and recruitment action was successful for full staffing and services in the facility. Government funding was received for a new Headspace building and Counselling facility to be completed in late 2017.

We commenced the Commonwealth ‘Helping Children with Autism and Better Start’ services by our Physiotherapy, Speech Pathology and Occupational Therapy teams.

Our staff responded well to the challenge of strengthening our hospitals response to family violence with new policies and through a series of training sessions.

Physiotherapy was successful in gaining project funding to develop cancer specific referral pathways. A second oncology rehabilitation program was implemented.

Our funding submission to Better Care Victoria for a fracture clinic was not successful and the need was clearly identified. Other ways to implement this service are considered necessary.

Our health service has embarked on a new program (Hardwiring Excellence) to enable all staff to focus on key organisational goals and the behaviours that are needed to support our organisational values.

Progress was made to improve clinical governance in line with the recommendations in the ‘Targetting Zero’ report. This included commencement of Mortality and Morbidity Committee meetings and processes and review of clinical performance indicators. Midwifery participated in the Loddon Mallee Regional Maternity and Perinatal Morbidity and Mortality Committee.

Overall we performed well in comparison with our peers with our Emergency Department response times and performance.

Thank you to our Consumer Advisory Group and our volunteers who assist in many ways to support our health service. The Hospital Op Shop ladies again accomplished a remarkable effort and donated $135,000 toward an operating table in the operating theatre suite and a portable ultrasound machine in the Emergency Department.

In accordance with the Financial Management Act 1994, We are pleased to present the Report of Operations for Swan Hill District Health for the year ending 30 June, 2017.

Mr. Peter Koetsveld Mr. E.C. (Ted) Rayment President Chief Executive Officer Swan Hill District Health Swan Hill District Health Board of Directors

Mr. Peter Koetsveld. Mr. Ted Rayment.


Board of Directors Mr. P.L. Koetsveld (Peter) PresidentGAICD Profession/Occupation: Project ManagerAppointed: 1st November, 2006

Mrs. J.E. Kent (Janine)Jnr. Vice President B.Pharm MPSProfession/Occupation: Pharmacist Appointed: 1st July, 2009

Mr. I.P. Ray (Ian) M.A.I.C.OProfession/Occupation: RetireeAppointed: 1st September, 2008

Mr. G.R.J. Dunstan (Geoff) R.N., B.H.A., LL.B., M.P.H. Profession/Occupation: LawyerAppointed: 10th June, 2014

Mrs. A. Patney (Archana)Ed., Dip Management, MAICDProfession/Occupation: TeacherAppointed: 1st July, 2016

Ms. R.M. Kava (Rosanne) Senior Vice PresidentBE.ME.GAICDProfession/Occupation: DirectorAppointed: 1st July, 2011

Mr. D.A. Logan (Don)B. Comm., A.S.C.P.A.Profession/Occupation: Snr. AccountantAppointed: 1st November, 1973

Dr. J.C. Christie (John)Dip.Med & Surg., DTM & H., FAFPHM, FRACMA, MACTM.Profession/Occupation: Consultant Medical AdministratorAppointed: 1st July, 2013

Mrs. J. Walters (Jodi)DipEd.,Grad Dip Spec.EdProfession/Occupation: PrincipalAppointed: 1st July, 2014

Assoc. Professor D.J. Colville (Deb)MBBS, PhD, FRANZCO, FRACS, M.P.H, CertProfession/Occupation: OphthalmologistAppointed: 1st July, 2016

Executive StaffChief Executive Officer: Mr. E.C. (Ted) Rayment, B.Bus, Grad Dip PSEM, GAICD, Cert. of Health Economics, AFACHSE, FIPMA,FAIM

Executive Officer - Clinical Services: Mrs. K.T. Wright, RN, RM, ICCert.,B.App.Sc.(Nsg.),MBA,FACN,AFCHSE, Grad.Cert.Hlth.Studies (Comm.Mental Health)

Executive Officer - Corporate Services: Mr. R.J. Prockter, BHA,AFCHSE

Executive Officer - Primary Care: Mr. P. Smith, Dip.App.Sc.(Pod.)

Director of Medical Services: Dr. Ka Chun Tse (KC), MBBS, MHM, MPH, FACHSM

Auditor: RSD Chartered Accountants (as agents of Auditor General of Vic.)

Internal Auditor: AFS & Associates Pty Ltd. Bendigo

Bankers: National Australia Bank

L to R: Paul Smith, EO Primary Care Services, Kathy Wright, EO Clinical Services,

Ted Rayment, CEO, Rod Prockter, EO Corporate Services, Dr. Ka Chun Tse, Director Medical

Services.


Organisation and Reporting Structure

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Strategic Plan 2016-19Swan Hill District Health will provide appropriate services in the right setting by dedicated people with and for our community.

COMMUNITY WORKFORCE

SERVICESFINANCIAL

SUSTAINABILITY

WE WORK WITH OUR COMMUNITY TO IMPROVE SERVICES

• Engage key community groups and stakeholders

• Strengthen existing and develop new partnerships

DEVELOP OUR WORKFORCE TO ENSURE SAFE AND SUSTAINABLE

HEALTH SERVICES• Medical workforce arrangements are

aligned with the clinical governance framework

• Staff capacity and capability meets the needs of the

organization

HEALTH SERVICES AND MODEL OF CARE MEET OUR COMMUNITY• Strengthen existing services to ensure

high standards of care

• Identify and implement new models of care

• Maximise Tele-health capacity for improved access to services

• Improve ICT infrastructure and systems to enhance service delivery

• Timely maintenance and upgrade of facilities, including equipment

ENSURES SERVICES ARE DELIVERED IN A FINANCIALLY

SUSTAINABLE WAY• Engage key community groups and

stakeholders

• Strengthen existing and develop new partnerships

RESPECT

VALUES

This means that you interact with others as you would expect them to interact with you.

PROFESSIONALISM

This means we deliver services with integrity, honesty and competence.

CARE

This means that we provide a standard of service and support which we would expect for ourselves.

COMMITMENT

This means that we are dedicated to the promotion and success of the organization.

COLLABORATION

This means working together in a positive, supportive manner.


Senior StaffMEDICAL DIVISION:Director Medical Services: Dr. Ka Chun Tse, MBBS, MHM, MPH, FACHSM.Director Emergency Department: Dr. D. Meaney, MBBS, JCCA, BSc. Medical Services Manager: Ms. K. Byron-Gray, RN, Dip Health Sci (Nursing), Critical Care Certificate, Grad Dip Public HealthQuality & Risk Manager: Ms. J. McQueen, RNBScNurs Adv.Dip.Bus.Ma, Int. Dip. RiskManChief Medical Imaging Technologists: Ms K. Irons, BMedRadSc (MedImaging) GradDip MSon. Mr J. Mooney, BMedRadSc (MedImaging).Chief Medical Officer: Dr. E. Hession, BAMB.,BC H.,BAO.,DCH.,Dip.Obs.,FRACGP.,FACRRMSwan Hill Primary HealthMedical Centre Practice Manager: Ms G. Kenyon

CLINICAL SERVICES DIVISION:Executive Officer: Mrs. K.T. Wright, RN, RM, ICCert.,B.App.Sc.(Nsg.),MBA, FACN,AFCHSE. Grad.Cert.Hlth.Studies(Comm.Mental Health), Associate Director of Nursing: Mr. S. Victor, M.Sc., MN.Director of Nursing Aged Care: Mrs. M. Allen, RN. BGerentological Nsg, MHA, Grad Dip HM; BPublic HealthNurse Unit Managers:

Acute Care Ward Ms. R. Hanns, RN BNsg, Grad Cert Acute Care Nsg. Dip Mgt.Logan Lodge (Acting) Mrs. M. Allen, RN. BGerentological Nsg., MHA, Grad Dip HM; BPublic Health Midwifery Unit Ms. P. Prinsloo RN.RM Emergency Department Mrs. T. Oxley RN.Mid.Grad.Cert.Emerg.Nsg.,Adv.Dip.Bus.Man. M.NsgC Operating Theatre Rooms Mrs. H. Wilkins, RN.RMDistrict Nursing Services Mrs. M. Fox, RN, Post Grad Wound Care, Stomal and T&LRenal Dialysis/Chemotherapy Ms. G. Mays, RNJacaranda Lodge Ms. A. Stefan RN, Grad Cert Cardiac Nsg, B.Ap.Sci (Naturopathy) and Adv.Dip Bus.Mgt. Night Nurse in Charge: Mrs. P. Rohde, RN,RM,Op.Th.Cert,B.Nsg.

Mrs. C. Beard, RN,RM.,Adv.Dip.Bus.Man.Care Co-ordinator: Mrs. B. Leschke, EN,Dip.Welfare Studies (Community)Infection & Prevention Control

Coordinator: Ms. J. Deveraux, RN,Inf.Cont.Cert.,Peri-op.Cert.,Grad.Dip.Hlth.Sci.Mgt.,MAGNPalliative Care Co-ordinator: Ms. C. Kemp, B.App.Sci.(Nsg) Grad.Cert. PalliativeCare, Grad.Cert.Oncol.Director of Pharmacy: Mrs. L. Dwyer, B.Pharm.,FSHP.,MSCPP.Breast Care Nurse: Mrs. L. Bibby, BNurs, PGDipMid, MNSc(ChiFamC), Accr. Pap Test Prov.Staff Development Officer: Mrs. M.J. Mitton, RN. RM.,MRCNA Adv. Dip.Bus.Man.. Mrs. J. Sydes, RN. Grad.Cert.(Clinical Teaching) Dip.VET PracticeTransition Care Coordinator: Mrs. M. Hennessy, RN.BNsg. Grad Cert Emerg Nsg.

CORPORATE SERVICES DIVISIONExecutive Officer: Mr. R.J. Prockter, BHA.AFCHSE.Engineering Services Manager: Mr. K. Herman, Dip.Eng. Environmental Services/Supply Manager: Mr. D. McCallum, Adv.Dip.Bus.Man.Chief Finance Officer: Mr. R. Karun, ACMA, BSc.,CPAFood Production Manager: Mr. K. BlackmanChief Health Information Manager: Mrs. M. Leahy, BHlth Info Mgt,Cert.Inf Tech(Multimedia)Occupational Health & Safety Officer: Mrs. J. Jones Human Resources Manager: Mr. S. Wainwright

PRIMARY CARE DIVISION:Executive Officer: Mr. P. Smith, Dip.App.Sc.(Pod.)Aboriginal Liaison Officer: Ms. D. ChaplinAdult Day Services Coordinator: Mrs. L. Farrow, B.Hlth.Sc (OT)Community Rehabilitation Co-ordinator: Mrs. K. Corrie, B.Hlth.Sc.(OT)Counselling Services Head: Mrs. E. Witney, Ass Dip.Welfare Studies,Dip.Psych.(Counselling)Chief Dietitian/Health Promotion Head: Mrs. G. Taylor, B.Sc.(Nut.),Grad.Dip.(Diet.) Adv.Dip.Bus.Man.Chief Occupational Therapist (Acting): Ms. M. Barbarioli, B.App.Sc. (OT), Grad Dip NeuroscsChief Physiotherapist: Mrs. J. Mooney, B. PhysioChief Podiatrist: Mrs. L. Harvey, BSc. (Hons) PodiatryChief Speech Pathologist: Mrs. L. Baker, B.Sp.Path.Headspace Manager: Mr. I. Johansen, B.SocWrk(hons), GradCertYMH, AMHSWRural Primary Health Services P/Manager: Mrs. T. Lawry, B.App.Sc.(H.Prom.).Senior Dentist: Ms. R. Saroha, MDS.Dental Clinic Coordinator: Mrs. J Healey


Medical StaffCLINICAL SERVICES DIVISIONS - HONORARY DIRECTORS:Anaesthetics: Dr. M. Elahi,, MB.BS.,D.ASurgery: Mr. S. Tellambura, MB.BS., FRACSObstetrics and Gynaecology: Dr. M. Holsman, BM., BS. FRANZCOGChief Medical Officer: Dr.E.F. Hession, BAMB.,BC H.,BAO.,DCH.,Dip.Obs.,FRACGP.,FACRRM

SHDH PRIMARY MEDICAL CLINIC:Dr. E.F. Hession, BAMB.,BC H.,BAO.,DCH.,Dip.Obs.,FRACGP.,FACRRM Dr. V. Beardsley. MBBS. Dr. J. Coshan, MBBS. FRACGPDr. S. Kelada MD FRACGPDr. M.L. Moynihan, MD FACRRMDr. I. Murphy MBBS. RVTSDr E. Hawkey MBBS. RVTSDr. D. Mirchandani MBBS. RegistrarDr. H. Yasir MBBS. Registrar

SWAN HILL MEDICAL GROUP: Dr. J.J. Barry, MBBS.,Dip.Obs.(RACOG), FACRRM, Assoc. Member ASADr. R.S. Booth, MBBS.,Dip.Obs.(RACOG.),FRACGPDr. M. Elahi, MBBS.,D.A.Dr. C.A. Stanbury, MBBS.(Hons.)Dr. R. Talukder, MBBS.Dr. M. Awal, MBBS.,M.D.,Dip.Card. Res. Aged CareDr. R.Wardak MBMB. RegistrarDr. Zeest Naveed, MBBS. Res. Aged CareDr. Y.J. Jia MBBS. RegistrarDr. P. Fielding MBBS. RegistrarDr. D.G. Williamson, MBBS., FACRRM., J.C.C.A.,G.P.A

Cardiology: Dr. G.P. Leitl, B.E.,MBBS. FRACP.General Medicine: Dr. P.J. Cooney, MBBS. FRACP.General Surgery: Mr. S. Tellambura, MBBS. FRACS Mr. P. Modak, MBBS. Mr. G. Khan,MBBS.,FRACS.(Ed.),FRACS.Geriatric Medicine: Dr. J. Eapen, MBBS.D.G.M.Obstetrics / Gynaecology: Dr. M. Holsman, BM., BS. FRANZCOG Dr. M. Abdeen, MBBS. FRANZCOG. Dr. R. Monro, MBBS.,FRANZCOG.,FRCOG.Nephrology: Dr. M. Lanteri, MBBS. FRACP.Oncology: Dr. M Warren, MBBS. FRACP. Dr. R. Blum, MBBS. Ophthalmic Surgery: Dr. S. Bassili, MB.B.Ch.,L.M.S.S.A.(Lon.),D.O.,FRACS.,FRACO.Orthopaedic Surgery: Mr. N. Dayananda, MBBS, MS, FRCS Ed, FRACS (Ortho) Mr. S. Holland, MBBS.FRACS.Otorhinolaryngology: Mr. P. Paddle, MBBS. FRACS. Mr. R. De Freitas, MBBS. FRACS. Pathology: Australian Clinical Labs Radiology: Dr. D.M. Cleeve, MBBS.FRANZCR. Dr. R. Jarvis, MBBS.FRANZCR. Dr. S. Skinner, MBBS. FRANZCR Dr. J. Eng, MBBS.,FRANZCR. Dr. J. Wilkie, MBBS.FRANZCR. Dr. J. Tamangani MB. Ch. B (Hons.) MSc. FRCR.Urology: Ms. J. Brennan, MBBS. (Hons), FRACS (Urology)Honorary dental surgeons: Dr. S. Zhang, B.D.Surg.,B.M. Dr.K. Goh, B.D.Sc.


Report of OperationsCONSULTANCIESDetails of Consultancies (valued at $10,000 or greater):

In 2016-17 there was one consultancy where the fee payable to the consultant was $10,000 or greater. The total expenditure incurred during 2016-17 in relation to this consultancy was $20,136 (excl. GST). Details of individual consultancies are outlined below:

Consultant Purpose of Consultancy Start Date End DateTotal App.

Project Fee (excl. GST)

Expenditure 2016/17 (excl.

GST)

Future Expenditure

(Excl. GST)

Cappela Consulting Pty Ltd

Medical Services Review Nov 2016 June 2017 20,136 20,136 $0

Details of Consultancies under $10,000:

In 2016-17 there were no consults engaged during the year, where the total fees payable to the consultants was less than $10,000.

BUILDING AND MAINTENANCESwan Hill District Health complies with the Building Act 1993.

FEES AND CHARGESSwan Hill District Health charges fees in accordance with the Department of Human Services directives issued under Regulation 8 of the Hospitals & Charities (Fees) Regulations 1986 as amended.

FREEDOM OF INFORMATIONFreedom of information is the means whereby people may obtain access to information not normally available to them, in accordance with the terms of the Freedom of Information Act 1982.

The Principal Officer under the Act is the Chief Executive Officer; the authorised Freedom of Information Manager is the Executive Officer - Corporate Services.

The public may seek access to any documents and records held by Swan Hill District Health by making a written request to the Freedom of Information Manager.

This year 61 requests for information were received which related to personal documents.

INDUSTRIAL RELATIONSSwan Hill District Health continues to function in an industrially stable environment.

QUALITY OF CARESwan Hill District Health has a strong commitment to quality and the standard of care that is delivered. To demonstrate our achievements Swan Hill District Health publishes a Quality of Care Report which is accessible on our website www.shdh.org.au Additionally it is distributed to the community via the Swan Hill District Health Advisory Committee members and at strategic locations for public access.

FINANCIAL MANAGEMENT ACT 1994In accordance with the direction of the Minister of Finance part 9.1.3 (iv), information requirements have been prepared and are available to the relevant Minister, Members of Parliament and the public on request.

SAFE PATIENT CARE ACT 2015Swan Hill District Health has no matters to report in relation to its obligations under section 40 of the Safe Patient Care Act 2015.

VICTORIAN INDUSTRY PARTICIPATION POLICYSwan Hill District Health complies with the requirements of the Victorian Industry Participation Policy Act 2003.

During 2016/17, SHDH commenced one VIPP project Stage 1 Headspace and Stage 2 Counselling Services Building at a cost of $1.8m. The outcomes expected from the implementation of the VIPP to this project are as follows:

• an average of 85.06% of local content commitment was made;

• a total of 74 jobs (AEE) were committed including the creation of 4 new jobs and retention of 70 jobs;

• a total of 27 positions for apprentices/trainees were committed including the creation of 5 new apprenticeships/traineeships and the retention of the remaining 22 existing apprenticeships/traineeships.

EX GRATIA EXPENSESNo ex gratia expenses have been incurred and written off during the reporting period.

OCCUPATIONAL HEALTH AND SAFETY MATTERSSwan Hill District Health is committed to ensuring the health, safety and welfare of its visitors, patients and staff and maintains its responsibilities under the Occupational Health and Safety Act 2004 (Vic), and subsequent Regulations. SHDH take proactive measures to identify and implement mitigation strategies to reduce the risk of injury in consultation with employees, mangers and other relevant consumers.

In 2016/2017 SHDH continued to strengthen the early intervention and proactive treatment strategies for injured workers, incorporating comprehensive return to work planning to reduce lost time. By reviewing incident data


and identifying successful interventions, SHDH has been able to apply safe concepts and innovations to new building works and processes which has again resulted in a reduction of common injuries and safer working environments for employees. The Swan Hill Residential Aged Care Facility (Logan Lodge) has continued to experience an excellent safety record again in 2016/2017 with a 0% impact on total Premium.

2014/2015 2015/2016 2016/2017

Number of Standard Claims

4 3 3

Number of Minor Claims

2 0 0

Total Workers Compensation

Payments Paid $10,180 18,663 34,083

OCCUPATIONAL VIOLENCE

Occupational Violence Statistics 2016-2017

1. Workcover accepted claims with an occupational violence cause per 100 FTE

0

2. Number of accepted Workcover claims with lost time injury with an occupational violence cause per 1,000,000 hours worked

0

3. Number of occupational violence incidents reported

99

4. Number of occupational violence incidents reported per 100 FTE

24.75

5. Percentage of occupational violence incidents resulting in a staff injury, illness or condition

6.1

For the purposes of the above statistics the following definitions apply:

Occupational violence – any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment.

Incident – an event or circumstance that could have resulted in, or did result in, harm to an employee. Incidents of all severity rating must be included. Code Grey reporting is not included, however, if an incident occurs during the course of a planned or unplanned Code Grey, the incident must be included.

Accepted Workcover claims – Accepted Workcover claims that were lodged in 2016-17.

Injury, illness or condition – This includes all reported harm as a result of the incident, regardless of whether the employee required time off work or submitted a claim.

FTE figures required in the above table should be calculated consistent with the Workforce information FTE calculation (refer to page 16 of the Health Service Model Annual Report guidelines). These do not include contracted staff (e.g. Agency nurses, Fee-for-Service Visiting Medical Officers) who are not regarded as employees for this purpose. The above data should be consistent with the information provided in the Minimum Employee Data Set.

ENVIRONMENTAL PERFORMANCESwan Hill District Health strives to continually improve the health of the people in our community by providing health care in an environmentally sound and sustainable manner. Swan Hill District Health is committed to continual improvement in energy consumption to reduce its carbon footprint.

The Swan Hill District Health Environmental Management Plan provides details of organisational performance and strategies to reduce environmental impacts.

The highlight for the year was the implementation of the 78kW Solar Power system.

AUDIT COMMITTEEThis Committee provides independent and objective appraisal on the organizations operation:-

C. Mahon (Independent Member)G. Hinton (Iindependent Member)Mr. W. Pollock (Independent Member)D. LoganR. Kava

PECUNIARY INTERESTSBoard of Directors are required in accordance with Swan Hill District Health By-laws to declare all pecuniary interests, which may reasonably, and foreseeably, be considered to create the potential for a conflict of interests with their position as a member of the Board.

These interests have been recorded.

PROTECTED DISCLOSURE ACTSwan Hill District Health has policies and procedures consistent with the requirements of the Protected Disclosures Act 2012, which supports staff to disclose improper or corrupt conduct within the Service. In 2016-2017 there were no disclosures made to Swan Hill District Health under the Act.

CARERS RECOGNITION ACT 2012Swan Hill District Health takes all practicable measures to ensure that its employees, agents and persons who are in care relationships receiving services have an awareness and understanding of the care relationship principles. We reflect the care relationship principles in developing, providing or evaluating support and assistance for persons in care relationships.

NATIONAL COMPETITION POLICYSwan Hill District Health complies with the requirements of the National Competition Policy to State Competitive Neutrality Policy (as revised).


MERIT AND EQUITYSwan Hill District Health is an equal opportunity employer and supports the principles of Merit and Equity. In addition it recognises and values the diverse skills and needs of different employees. Workplace policies have been developed to ensure these principles are practiced throughout the agency.

Male Female ATSI PWD NESB

Full Time 45 118 1 25

Part Time 53 304 - 1 28

Casual 11 62 1 - 6

ATSI Aboriginal & Torres Strait Islander.PWD People with Disability.NESB Non-English Speaking Background.

NO. OF STAFF EMPLOYED AS AT 30TH JUNE, 2017.

June Month FTE

June YTD FTE

2016 2017 2016 2017

Nursing 163.0 171.0 162.1 166.3

Administration & Clerical 69.5 76.9 67.9 73.8

Medical Support Services 4.3 67.6 4.1 63.7

Hotel & Allied Services 76.5 69.9 73.5 66.8

Medical Officers 0.4 1.7 0.2 0.6

Hospital Medical Officers 13.3 16.6 14.7 14.1

Sessional / Clinicians 0.3 0.3 0.2 0.4

Ancillary Support 46.4 3.8 45.6 3.3

Total: 373.7 407.8 368.3 388.8

ATTESTATION FOR COMPLIANCE WITH THE MINISTERIAL STANDING DIRECTION 3.7.1 – Risk MANAGEMENT FRAMEWORK AND PROCESSES

I, Ted Rayment certify that Swan Hill District Health has compiled with Ministerial Direction 3.7.1 – Risk Management Framework and Processes. Swan Hill District Health Audit Committee has verified this.

Ted Rayment, Accountable Officer

4th August, 2017.

ATTESTATION ON COMPLIANCE WITH HEALTH PURCHASING VICTORIA (HPV) HEALTH PURCHASING POLICIES

I, Ted Rayment certify that Swan Hill District Health has put in place appropriate internal controls and processes to ensure that it has complied with all requirements set out in the HPV Health Purchasing Policies including mandatory HPV collective agreements as required by the Health Services Act 1988 (Vic) and has critically reviewed these controls and processes during the year.

Ted Rayment, Accountable Officer

4th August, 2017

Additional InformationConsistent with FRD 22H (Section 6.19), details in respect of the items listed below have been retained by SHDH and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

• Declarations of pecuniary interest have been completed by all relevant officers;

• Details of shares held by senior officers as nominee or held beneficially;

• Details of publications produced by SHDH about SHDH and where they can be obtained;

• Details of changes in prices, fees, charges, rates and levies charged by the Health Service;

• Details of any major external reviews carried out on the Health Service;

• Details of major research and development activities undertaken by SHDH;

• Details of any major external reviews carried out on the Health Service;

• Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit;

• Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services;

• Details of assessments and measures undertaken to improve the occupational health and safety of employees;

• A general statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations;

• A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which the purposes have been achieved;

• Details of all consultancies and contractors including: consultants/contractors engaged, services provided, and expenditure committed for each engagement.


Disclosure IndexThe annual report of the Swan Hill District Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Requirement Page Reference

MINISTERIAL DIRECTIONS REPORT OF OPERATIONSCharter and purpose

FRD 22H Manner of establishment and the relevant Ministers Inside Front Cover

FRD 22H Objectives, functions, powers and duties Inside Front Cover

FRD 22H Initiatives and key achievements 2

FRD 22H Nature and range of services provided Inside Back Cover

Management and structure

FRD 22H Organisational structure 4

Financial and other information

FRD 10A Disclosure index 12

FRD 11A Disclosure of ex gratia expenses 9

FRD 21C Responsible person and executive officer disclosures 2, 11 and Appendix 3

FRD 22H Application and Operation of Protected Disclosure Act 2012 10

FRD 22H Application and Operation of Carers Recognition Act 2012 10

FRD 22H Application and operation of Freedom of Information Act 1982 9

FRD 22H Compliance with building and maintenance provisions of Building Act 1993 9

FRD 22H Details of consultancies over $10,000 9

FRD 22H Details of consultancies under $10,000 9

FRD 22H Employment and conduct principles 11

FRD 22H Information and Communication Technology Expenditure Appendix 4

FRD 22H Major changes or factors affecting performance 2

FRD 22H Occupational violence 10

FRD 22H Operational and budgetary objectives and performance against objectives 2 and Appendix 1, 2 & 3

FRD 24C Environmental Performance 10

FRD 22H Significant changes in financial position during the year Appendix 2

FRD 22H Statement on National Competition Policy 10

FRD 22H Subsequent events Appendix 3

FRD 22H Summary of the financial results for the year Appendix 2

FRD 22H Additional information available on request 11

FRD 22H Workforce Data Disclosures including a statement on the application of employment and conduct principles 11

FRD 25C Victorian Industry Participation Policy disclosures 9

FRD 29B Workforce Data disclosures 11

FRD 103F Non-Financial Physical Assets Appendix 3

FRD 110A Cash flow Statements Appendix 3

FRD 112D Defined Benefit Superannuation Obligations Appendix 3

SD 5.2.3 Declaration in report of operations 2

SD 3.7.1 Risk management framework and processes 11

Other requirements under Standing Directions 5.2

SD 5.2.2 Declaration in financial statements Appendix 3

SD 5.2.1(a) Compliance with Australian accounting standards and other authoritative pronouncements Appendix 3

SD 5.2.1(a) Compliance with Ministerial Directions Appendix 3

LegislationFreedom of Information Act 1982 Protected Disclosure Act 2012 Carers Recognition Act 2012 Victorian Industry Participation Policy Act 2003 Building Act 1993 Financial Management Act 1994Safe Patient Care Act 2015


ATTACHED HERE

SHOULD BE FINANCIAL STATEMENTS

AND STATEMENTS OF PRIORITIES.

SHOULD THESE BE MISSING CONTACT CEO’S OFFICE PHONE: (03) 5033 9221

OR EMAIL: [email protected]

Our ServicesSHDH PROVIDES THE FOLLOWING SERVICES:

Aboriginal LiaisonAcute CareAdult Day ServiceAged Care ResidentialBreast Care NurseCardiologyCare Co-ordinationChemotherapyCommunity Health NursingCommunity RehabilitationContinence ServiceCounselling Service, incl.

Alcohol and Other Drug Services

Dental DieteticsDistrict NursingDomiciliary Midwifery ServiceDrink Driver ProgramEmergency DepartmentGeneral MedicineGeneral SurgeryGeriatric MedicineGP – Primary Health ClinicGynaecology HaemodialysisHeadspaceHealth Clinics

Health PromotionHospital Admission Risk

ProgramHospital in the HomeLymphoedema ServiceMeals on WheelsMidwifery UnitNephrologyOccupational TherapyOncologyOphthalmology SurgeryOrthopaedic SurgeryOtorhinolaryngology SurgeryPaediatric MedicinePalliative CarePharmacyPhysiotherapyPodiatryPost Acute Care ServicesPreparation for ChildbirthRadiologyRural Primary Health ServicesSpeech PathologyStomal TherapyTransitional CareUrology SurgeryVascular Services

SERVICES LOCATED AT MAIN CAMPUS PROVIDED BY OTHERS:

Ophthalmology ClinicLoddon Mallee Integrated Cancer ServiceAustralian Clinical Labs


Splatt Street, PO Box 483, Swan Hill, Vic 3585

Phone: (03) 5033 9300

www.shdh.org.au

ABN: 24 314 338 210

Swan Hill District Health

Appendix 1:

Statement of Priorities – 2016-2017 – Part A, B & C

Financial Statements for the year ended 30th June, 2017.

Appendix 2:

- Activity Data- Summary of Financial Results- Comparative Statistical Statement for five years- Financial Result for 2016/17

Appendix 3:

- Victorian Auditor-General’s Office Report

Appendix 4:

- Information and Communication Technology (ICT) expenditure

STRATEGIC PRIORITIES REPORT – 2016-2017 APPENDIX 1PART APriority Deliverable Outcomes

Quality and Safety Implement a system to identify Advance Care Plans in the medical record to ensure wishes for future care are activated when medical decisions need to be made by December 2016.

Complete - System in place.

Review current processes by February 2017 to ascertain Advance Care Planning is included as a parameter in the assessment of outcomes including routine data collection, mortality and morbidity reviews and patient experience.

Complete - Advance Care Planning now incorporated into reports that are examined in the SHDH Mortality & Morbidity Committee

Develop a Family Violence Action Plan utilising learnings from the Bendigo Health and Royal Women's Strengthening Hospital Responses to Family Violence model by March 2017.

Complete - Family Violence Action Plan including Workshops, Family Violence Policy /Protocol and Training has been implemented.

Sign Memorandum of Understanding with other health services in the Loddon Mallee Region by December 2016 to establish Regional Clinical Governance Committee.

Complete - Memorandum of Understanding signed in June 2017.

Support and develop regional subacute services with participation in the Loddon Mallee Regional Sub-Acute Committee by June 2017.

Ongoing - Regional Sub-Acute Services supported with Regional Sub-Committee including Geriatrician and LMRHA.

Maintain Foetal Surveillance Education Program and Neonatal Resuscitation (Advanced) on alternate years.

Complete - Neonatal Resuscitation Advanced Program held July 2016. Bendigo programs accessible to SHDH staff.

Review midwifery overnight roster to ensure appropriately skilled and qualified staff are available to assist with fluctuating patient numbers and ward isolation by September 2016.

Complete - EN night duty rotation commenced January 2017.

Utilise the Victorian Healthcare Experience Survey and Swan Hill District Health's community feedback survey to drive improved health outcomes by March 2017.

Ongoing - VHES results that are recognised as low or identified opportunities for improvement recorded on the Org Wide quality register with relevant department leads to complete work on improvement activity.

Complete an audit verifying compliance to the Restraint Protocol and Behavioural Assessment Room and Restraint Protocol by December 2016.

Ongoing - Audit completed in January 2017.New protocols in June 2017 require a further review.

Access and TimelinesAssess compliance of specialist clinics with the Victorian Specialist Clinics Access Policy by March 2017.

Complete - Compliance assessed with new Tier 2 Clinics developed.

Implement a cancer specific exercise and education program with supportive screening and referral pathway by April 2017.

Complete - Physio Departments gained LMICS Project Funding for Cancer Pathway and Pilot Oncology Rehabilitation Program commenced in March 2017.

Priority Deliverable Outcomes

Utilise the Victorian Auditor General's Efficiency and Effectiveness of Hospital Services: emergency care audit findings and recommendations to develop an Emergency Department action plan.

Complete - Emergency Department action plan developed. All recommendations implemented.

Reduce by 5 per cent people who have an unplanned representation and did not wait for treatment from December 2016 to June 2017.

Not Complete - KPI of 4% met with result ranging from 2.6% to 3.1%.

Develop and implement a sustainable telehealth strategy addressing governance, models, funding and reporting requirements by June 2017.

Not Complete - Fracture Clinic application unsuccessful. Eye Connect successful.

Develop a My Aged Care Policy and Protocol for Home and Community Care / Commonwealth Home Support Program and provide education/training for staff by August 2016.

Complete.

Supporting Health Populations

Integrate Health Promotion Plan to align with Swan Hill Rural City Council Health and Wellbeing Plan, Southern Mallee Primary Care Partnership and Murray Primary Health Network by June 2017.

Ongoing - Working collaboratively within priority areas that included mental health, healthier eating and active living and preventing family violence.

Integrated Health Promotion Plan to be inclusive of whole of population approaches including settings based interventions with a focus on the priority areas of nutrition and oral health, physical activity, mental wellbeing and sexual health by June 2017.

Complete - Planned reviewed and implemented.

Utilise the Refugee Health Program to engage and partner with local cultural groups and local agencies to improve access to culturally sensitive, safe and inclusive services by March 2017.

Ongoing - A Refugee Health Program Plan was developed and discussed with the RHP Statewide Coordinator who visited Swan Hill on October 5th. This plan will be implemented over the next year.

Develop a community engagement framework and associated plan by March 2017.

Ongoing - Volunteer Policy approved with 2017-20 Consumer Engagement Plan and Volunteers Framework in development.

Implement Aboriginal and Torres Strait Islander Health Assessment Medicare items through the Primary Health Medical Clinic by June 2017

Ongoing - Small number of Aboriginal & Torres Strait Islander patients with 1 completed health assessment and 2 booked for completion

Develop a three year Aboriginal Health Promotion and Chronic Care Plan in partnership with Mallee District Aboriginal Service by November 2016.

Complete - Mallee District Aboriginal Service submitted on behalf of MDAS and SHDH one year plan incorporating delivery of dental services and YARN SAFE Program.Delivery of Podiatry, Dietetics, Diabetes Assessment and Women’s Health Clinic at Mallee District Aboriginal Service.

Construction of a new Counselling (Alcohol and Other Drug) building and headspace building by June 2017.

Not Complete - Building completion delayed until December 2017.


Establishment of headspace Swan Hill by July 2016 and full headspace staffing complement by November 2016.

Complete - All positions filled.

Investigate gay, lesbian, transgender, and intersex community needs for those aged 16-25 years and review requirements for Rainbow Tick Accreditation by June 2017.

Complete - Initiatives implemented recognising the support provided by SHDH Health Promotion Officer, Hayden Collins.Diversity statement to be included in all Position Descriptions.

Governance and leadership

Sign Memorandum of Understanding with other health services in Loddon Mallee Region by December 2016 to establish regional Clinical Governance Committee.

Complete.

Develop and implement a robust medical workforce strategy supporting the implementation of safe and evidence based clinical care by March 2017.

Ongoing - Medical Services Managed commenced on 23rd January 2017.Director of Emergency Medicine commenced on 20 February, 2017.Junior Medical Staff Training Improvement Plan continues to be implemented, updates accepted by the Post Graduate Medical Council of Victoria on 30th November, 2016.

Participate in Regional Leadership Forum involving Chief Executives of each public health service in Loddon Mallee Region established by December 2016. Leadership Forum to develop Local Region Action Plans in response to statewide clinical services stream and service development plans as plans are published by the Department of Health and Human Services.

Ongoing - CEO participated and supported the Regional Leadership Forum.

Review the Swan Hill District Health Workplace Anti-Bullying and Harassment Policy by October 2016.

Complete - Policy reviewed and Hardwiring Excellence Program approved and commenced October 2016.

Review the Occupational Health and Safety Policy and Protocols and provide staff education on reporting occupational violence, workplace bullying and harassment by April 2017.

Complete.

To review traineeship opportunities with specific focus for Aboriginal and Torres Strait Islander people by March 2017.

Ongoing - Unsuccessful application to the 2016-17 Koolin Balit Training Grants.

YARN Safe Worker appointed. (Aboriginal designated position – Engagement Worker in headspace)

Promote a culture of performance improvement and excellence in care with the commencement of Hardwiring Excellence program by December 2016.

Ongoing - Workshops with Studer Group conducted throughout the year.

VMO’s included in Hardwiring for Excellence rounding from January, 2017.

Develop and provide staff education on the Child Safe Policy which meets the Victorian Child Safe Standards by January 2017.

Complete - Appointment of SHDH Social Worker – based in Acute Ward.


Child Safety Policy, Reporting of Child Protection Procedure and Child Safe Code of Conduct developed in line with the Victorian Child Safe Standards implemented.

Review the current staff immunisation program by December 2016.

Complete - Infection Control Nurse reviewed immunisation rates for Boostrix/Hepatitis B and MMR for long serving staff and initiating booster clinics as required.Flu vax sessions conducted during April-June 2016.

Finance Sustainability Complete monthly cash flow reviews and report to Board of Management.

Complete - Monthly reports provided to Board of Management.

Complete review of the Environmental Management Plan by October 2016.

Complete - Implementation of 78 kw Solar Panel system.Environmental Management Plan reviewed.

SWAN HILL DISTRICT HEALTH

SoP PART B

Part B: Performance Priorities

Key Performance Indicator Actual TargetAccreditationCompliance with NSQHS Standards accreditation Full FullCompliance with the Commonwealth’s Aged Care Accreditation Standards

Full Full

Infection Prevention and ControlCompliance with cleaning standards Full Full

- Very high risk Achieved 90%- High Risk Achieved 85%- Moderate Risk Achieved 85%

Submission of infection surveillance data to VICNISS Full FullCompliance with Hand Hygiene Australia program 87% 80%Percentage of healthcare workers immunised for influenza 81.7% 75%Patient ExperienceVictorian Healthcare Experience Survey

- Data submissionFull Full

Victorian Healthcare Experience Survey- Patient Experience Quarter 1

93% 95%

Victorian Healthcare Experience Survey- Patient experience Quarter 2

97% 95%


96% 95%


98% 95%

Victorian Healthcare Experience Survey- Discharge Care Quarter 1

75%


83% 75%


84% 75%


77% 75%

Maternity and NewbornPercentage of women with prearranged postnatal home care 100% 100%Rate of singleton term infants without birth anomalies with APGAR score <7 to 5 minutes

1.0% <1.6%

Rate of severe foetal growth restriction in singleton pregnancy undelivered by 40 weeks

<28.6%

Governance, leadership and culture Actual TargetPeople Matter Survey 92% 80%

Access and timelines Actual TargetEmergency CareAmbulance patients transferred within 40 mins 97% 90%Triage 1 Emergency Patients seen immediately 100% 100%Triage 1-5 Emergency Patients seen within recommended times 89% 80%ED <= 4 hours (QTD) 81% 81%ED > 24 hours (QTD) 1 0Specialist ClinicsUrgent patients referred attending first appt within 30 days 100%Routine patients referred attending first appt within 365 days 90%

Financial Sustainability Actual TargetFinanceOperating Result ($m) (0.134) 0.00Trade Creditors 53 days 60 daysPatient fee debtors 23 days 60 daysPublic & Private WIES performance to target 100.47% 100.00%Adjusted current asset ratio 0.98 0.70Number of days with available cash 67.5 days 14 daysAsset managementBasic asset management plan Yes Full

SoP PART C

Part C: Activity and Funding

Activity ActualWIES Public 3,455.63WIES Private 907.72WIES DVA 84.91WIES TAC 21.00WIES TOTAL 4,469.26HIP (Health Independence Program) 11,918

SWAN HILL DISTRICT HEALTH APPENDIX 2KEY FINANCIAL AND SERVICE PERFORMANCE ACTIVITY

ACTIVITY DATA

Acute AgedAdmitted Patient Health Care Other TotalSeparationsSame Day 4,033 4,033Multi Day 2,575 40 2,615Total Separations 6,608 40 6,648Emergency 2,027 2,027Elective 4,255 4,255Other 323 323Total Separations 6,605 6,605Public Separations 4,599 4,599Total WIES 4,469.26 4,469.26Total Bed Days 13,678 27,258 40,936

AcuteNon Admitted Patients Health Sub Acute Other TotalEmergency Medical Attendances 10,591 10,591Outpatient Services 13,258 5 13,263Other Services ** - 15,032 29,921 44,953Total Occasions of Service 23,849 15,032 29,926 68,807

** Includes : Community Rehabilitation Centre,Palliative Care,HACC Services,ADASS Support Service,Primary Care,Health Promotion and Koori Liaison Services.

SUMMARY FINANCIAL RESULTS2016/17 2015/16 2014/15 2013/14 2012/13

$000 $000 $000 $000 $000

Total Expenses 60,811 54,831 52,891 50,546 47,451Total Revenue 58,160 63,969 55,553 49,535 47,235Net Surplus / (Deficit) for the Year (2,651) 9,138 2,662 (1,011) (216)

Accumulated Surpluses 4,121 6,890 (2,070) (4,534) (6,915)

Total Assets 81,343 79,355 67,197 61,929 39,512Total Liabilities 22,551 17,912 14,891 12,285 11,564Net Assets 58,792 61,443 52,306 49,644 27,948

Total Equity 58,792 61,443 52,306 49,644 27,948

FINANCIAL RESULT FOR 2016/17Swan Hill District Health has an Operating result before Capital and Specific items in deficit of $134k. Total Capital and Specific items include total depreciation ($4,197k), Income specifically for the purchase of Capital items including DHHS Grants and Donations, and Profit & Loss on sale of Assets. Leaving a Net result after Capital and Specific items in deficit of $2,651k.

SWAN HILL DISTRICT HEALTHCOMPARATIVE STATISTICAL STATEMENT FOR FIVE YEARS

2016-17 2015-16 2014-15 2013-14 2012-13Number of Available BedsHospital 65 65 65 65 65Aged Care * 75 79 79 0 0Extended Care Unit * 0 0 0 64 64Hostel * 0 0 0 15 15

In - Patients TreatedHospital 6,608 6,860 7,434 7,892 7,445Aged Care * 114 120 137 0 0Extended Care Unit * 0 0 0 83 80Hostel * 0 0 0 38 38

Daily Average of InpatientsHospital 37.4 40.7 43.7 49.4 42.5Aged Care * 74.7 72.7 69.9 0.0 0.0Extended Care Unit * 0.0 0.0 0.0 54.4 55.2Hostel * 0.0 0.0 0.0 14.9 14.8

Average Days Stay of Inpatients ^^^Hospital 1.9 2.0 1.9 2.1 2.1Aged Care * 239.1 221.1 186.2 0.0 0.0Extended Care Unit * 0.0 0.0 0.0 239.4 255.2Hostel * 0.0 0.0 0.0 142.9 146.4

Emergency DepartmentAll Activity 12,726 13,503 12,979 12,613 13,451

Community Rehabilitation CentreAttendances 8,584 8,060 6,447 5,339 4,600

Day CentreAttendances 2,214 2,200 2,251 2,160 2,245

Visiting Nursing ServiceAttendances 10,380 11,306 10,166 13,107 9,211

Dental Clinic ^^Occasions of Service 5 8 230 329 379

Dietetics DepartmentOccasions of Service 2,279 2,299 1,762 2,174 2,122No of Groups 0 0 0 1 2No of Group Attendances 0 0 0 2 18

Occupational Therapy DepartmentOccasions of Service 4,920 5,926 5,701 4,953 3,190

Physiotherapy Department ^Occasions of Service 6,643 6,212 3,259 2,560 3,869

Podiatry DepartmentOccasions of Service 3,073 3,536 2,324 2,908 2,608No of Groups 0 0 0 0 0No of Group Attendances 0 0 0 0 0

Speech Pathology DepartmentOccasions of Service 3,346 2,784 2,891 2,737 2,187

SWAN HILL DISTRICT HEALTHCOMPARATIVE STATISTICAL STATEMENT FOR FIVE YEARS

2016-17 2015-16 2014-15 2013-14 2012-13

Radiology DepartmentOccasions of Service 23,251 23,598 23,097 22,580 20,390

Care Co-Ordinator ServicesNumber of Cases 2,373 2,415 2,390 2,249 2,135

Counselling ServicesClients 318 610 557 1,565 1,990Occasions of Service 2,531 3,302 4,207 4,916 3,932No of Groups 8 3 25 50 51No of Group Attendances 2,614 3,452 4,812 5,319 463

Health Promotion**No of Groups 0 0 0 0 13No of Group Attendances 0 0 0 0 119Occasions of Service ( Exc Groups ) 0 0 0 0 530

Palliative Care Service***Occasions of Service 6,448 9,517 6,276 1,455 7,195

Pharmacy - Workload Units 176,427 191,478 194,451 192,290 196,340

Food Services Department ~No of Meals Prepared 187,378 210,546 238,369 223,782 227,177

Operations Performed 2,172 2,363 2,432 2,600 2,345Major # 0 419 550 710 726Minor # 0 1,381 1,882 1,890 1,619Urgent # 207 103Non Urgent # 1,965 460

Births 232 273 203 237 256

Deaths 94 78 89 79 62

Acute Patient Weighted Inlier Equivalent Separations - ( WIES ) 4,469 4,763 4,490 4,200 4,001

# Operations Performed, Urgent & Non Urgent reporting commenced in place of Major/Minor^ Physiotherapy now recording Group Session contacts previously not reported^^ Dental now using vouchers on Emergency cases only^^^ Average Day Stays Of Inpatients increased due to reporting on 45 beds up from 43 beds~ Decrease in meals due to Soup & Sweets unabled to be reported under existing programme

* Longer Living Living Better reforms commenced 1 July 2014, distinction between High and Low Care beds removed

*** Pallitative Care Services reporting criteria altered 1 July 2013; reporting criteria reverted back 1 July 2014

# Operations Performed, Major & Minor Operations reporting altered since end of March 2016 and no longer able to determine Minor/Major

** Health Promotion reporting arrangements altered 1 July 2013

P. Koetsveld E.C. Rayment R.KarunananthamBoard Member Accountable Officer Chief Finance & Accounting Officer

Swan Hill Swan Hill Swan Hill

5 September 2017 5 September 2017 5 September 2017

We authorise the attached financial statements for issue on 5 September 2017.


Board member's, accountable officer’s, and chief finance & accounting officer’s

declaration

The attached financial statements for Swan Hill District Health have been prepared in accordance with Direction 5.2

of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable

Financial Reporting Directions, Australian Accounting Standards including Interpretations and other mandatory

professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2017 and the financial position of Swan Hill District Health at 30 June 2017.

At the time of signing, we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.

Independent Auditor’s Report To the Board of Swan Hill District Health

Opinion I have audited the financial report of Swan Hill District Health (the health service) which comprises the:

balance sheet as at 30 June 2017 comprehensive operating statement for the year then ended statement of changes in equity for the year then ended cash flow statement for the year then ended notes to the financial statements, including a summary of significant accounting

policies board member's, accountable officer's and chief finance & accounting officer's

declaration.

In my opinion the financial report presents fairly, in all material respects, the financial position of the health service as at 30 June 2017 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the Financial Management Act 1994 and applicable Australian Accounting Standards.

Basis for Opinion

I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Auditing Standards. My responsibilities under the Act are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report.

My independence is established by the Constitution Act 1975. My staff and I are independent of the health service in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Board’s responsibilities for the financial report

The Board of the health service is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Financial Management Act 1994, and for such internal control as the Board determines is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Board is responsible for assessing the health service’s ability to continue as a going concern, and using the going concern basis of accounting unless it is inappropriate to do so.

2

Auditor’s responsibilities for the audit of the financial report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the health service’s internal control

evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board

conclude on the appropriateness of the Board’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the health service’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the health service to cease to continue as a going concern.

evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 5 September 2017

Ron Mak as delegate for the Auditor-General of Victoria


Note 2017 2016$'000 $'000

Revenue from operating activities 2.1 55,661 49,749 Revenue from non-operating activities 2.1 648 1,023 Employee expenses 3.1 (38,325) (34,424) Non salary labour costs 3.1 (4,102) (3,079) Supplies and consumables 3.1 (5,565) (5,254) Other expenses 3.1 (8,451) (7,722)

Net result before capital and specific items (134) 293

Capital purpose income 2.1 1,851 13,197 Depreciation 4.4 (4,197) (4,234) Expenditure for Capital Purpose 3.1 (110) (104)

Net result after capital and specific items (2,590) 9,152 Other economic flows included in net resultRevaluation of Long Service Leave 3.3 (61) (14)

Total other economic flows included in net result (61) (14)

NET RESULT FOR THE YEAR (2,651) 9,138

Comprehensive result (2,651) 9,138

Comprehensive Operating Statement

For the Year Ended 30 June 2017

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


Note 2017 2016$'000 $'000

Current assetsCash and cash equivalents 6.1 9,203 3,299 Receivables 5.1 1,722 2,098 Investments and other financial assets 4.1 7,675 10,913 Inventories 5.2 193 197 Prepayments and Other assets 5.4 1,120 986

Total current assets 19,913 17,493

Non-current assetsReceivables 5.1 1,013 790 Property, plant and equipment 4.3a 60,417 61,072

Total non-current assets 61,430 61,862 TOTAL ASSETS 81,343 79,355

Current liabilitiesPayables 5.5 4,724 2,477 Provisions 3.3 9,761 8,833 Other current liabilities 5.3 6,932 5,551

Total current liabilities 21,417 16,861

Non-current liabilitiesProvisions 3.3 1,134 1,051

Total non-current liabilities 1,134 1,051 TOTAL LIABILITIES 22,551 17,912 NET ASSETS 58,792 61,443

EQUITYProperty, plant and equipment revaluation surplus 8.1a 34,231 34,231 General purpose surplus 8.1a 2,368 2,251 Contributed capital 8.1c 18,072 18,072 Accumulated surpluses/(deficits) 8.1c 4,121 6,889

TOTAL EQUITY 58,792 61,443

Contingent assets and contingent liabilities 7.3Commitments 6.2

Balance Sheet

As at 30th June 2017

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


Note 2017 2016$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESOperating grants from government 42,127 37,599 Capital grants from government 642 11,923 Patient and resident fees received 7,026 4,358 Private practice fees received 771 963 Donations and bequests received 96 163 GST received from/(paid to) ATO 224 (110)

Recoupment from private practice for use of hospital facilities 1,717 1,445

Interest received 233 167

Other capital receipts 1,163 1,213 Other receipts 6,531 5,895 Total receipts 60,530 63,616

Employee expenses paid (37,375) (34,097) Non salary labour costs (4,102) (3,079) Payments for supplies and consumables (5,559) (5,269) Other payments (8,685) (8,331) Total payments (55,721) (50,776)

NET CASH FLOW FROM OPERATING ACTIVITIES 8.2 4,809 12,840

CASH FLOWS FROM INVESTING ACTIVITIESNet redemption/(purchase) of investments 4,646 (3,729) Payments for non-financial assets (3,624) (13,665) Proceeds from sale of non-financial assets 100 47

NET CASH FLOW FROM/(USED IN) INVESTING 1,122 (17,347)

NET INCREASE/(DECREASE) IN CASH AND CASH 5,931 (4,507)

Cash and cash equivalents at beginning of financial year 2,971 7,478

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL 6.1 8,902 2,971

This Statement should be read in conjunction with the accompanying notes

Cash Flow Statement For the Year Ended 30 June 2017

Sw

an

Hil

l D

istr

ict

He

alt

h

Pro

pert

y, P

lan

t

an

d E

qu

ipm

en

t

Rev

alu

ati

on

Su

rplu

s

Gen

era

l

Pu

rpo

se

Su

rplu

s

Co

ntr

ibu

tio

ns

by O

wn

ers

Accu

mu

late

d

Su

rplu

ses/

(Defi

cit

s)

To

tal

No

te$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Bala

nce a

t 1 J

uly

2015

34,2

31

2,0

73

18,0

72

(2,0

71)

52,3

05

Net result for the year

-

-

-

9,138

9,138

Transfer to accumulated surplus

8.1a, 8.1c

-

178

-

(178)

-

Resta

ted

bala

nce a

t 30 J

un

e 2

016

34,2

31

2,2

51

18,0

72

6,8

89

61,4

43

Net result for the year

-

-

-

(2,651)

(2,651)

Transfer to accumulated surplus

8.1a, 8.1c

-

117

-

(117)

-

Bala

nce a

t 30 J

un

e 2

017

34,2

31

2,3

68

18,0

72

4,1

21

58,7

92

Sta

tem

en

t o

f C

han

ges

in

Eq

uit

y

Fo

r th

e Y

ear

En

ded

30

Ju

ne 2

01

7

Th

is S

tate

me

nt

sh

ou

ld b

e r

ea

d in

co

nju

nctio

n w

ith t

he

acc

om

pan

yin

g n

ote

s

Consistent with the requirements of AASB 1004 Contributions (that is contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the hospital.

Additions to net assets which have been designated as contributions by owners are recognised as contributed capital. Other transfers that are in the nature of contributions to or distributions by owners have also been designated as contributions by owners.

Transfers of net assets arising from administrative restructurings are treated as distributions to or contribution by owners. Transfer of net liabilities arising from administrative restructurings are treated as distribution to owners.

Judgements, estimates and assumptions are required to be made about financial information being presented. The significant judgements made in the preparation of these financial statements are disclosed in the notes where amounts affected by those judgements are disclosed. Estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also future periods that are affected by the revision. Judgements and assumptions made by management in applying the application of AASB that have significant effect on the financial statements and estimates are disclosed in the notes under the heading: 'Significant judgement or estimates'.

Basis of Presentation

These financial statements are presented in Australian dollars and the historical cost convention is used unless a different measurement basis is specifically disclosed in the note associated with the item measured on a different basis.

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.


NOTES TO THE FINANCIAL STATEMENTS

30 JUNE 2017

(a)

(b)

(c)

These financial statements are presented in Australian dollars, the functional and presentation currency of the Health Service.

The going concern basis was used to prepare the financial statements.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2017, and the comparative information presented in these financial statements for the year ended 30 June 2016.

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.

Its principal address is:

Swan Hill District Health's overall objective is to provide appropriate services in the right setting by dedicated people with and for our community, as well as improve the quality of life to Victorians.

A description of the nature of Swan Hill District Health's operations and its principal activities is included in the report of operations, which does not form part of these financial statements.

Victoria 3585Swan Hill

Objectives and funding

The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Minister for Finance.

Splatt Street



30 JUNE 2017

Note 1: Summary of Significant accounting policies

These annual financial statements represent the audited general purpose financial statements for Swan Hill District Health for the period ending 30 June 2017. The report provides users with information about the Health

Services’ stewardship of resources entrusted to it.

Statement of compliance

These financial statements are a general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable AASBs, which include

interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.

Reporting Entity

The Health Service is a not-for-profit entity and therefore applies the additional Aus paragraphs applicable to "not-for-profit" Health Services under the AASs.

The annual financial statements were authorised for issue by the Board of Swan Hill District Health on 05 September 2017.

The financial statements include all the controlled activities of Swan Hill District Health.

Swan Hill District Health is predominantly funded by accrual based grant funding for the provision of outputs.

Basis of accounting preparation and measurement



30 JUNE 2017

(c)

(d)

• superannuation expense (refer to Note 3.4);

• actuarial assumptions for employee benefit provisions based on likely tenure of existing staff and patterns of leave claims, future salary movements and future discount rates (refer to Note 3.3).

Principles of Consolidation

Investments in joint operations

Swan Hill District Health has no consolidated entities.

Intersegment transactions

Transactions between segments within the Swan Hill District Health have been eliminated to reflect the extent of the Swan Hill District Health's operations as a group.

• the fair value of land, buildings, plant and equipment, (refer to Note 4.4(c));

Basis of accounting preparation and measurement (continued)

• non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made and are re-assessed when new indices are published by the Valuer General to ensure that the carrying amounts do not materially differ from their fair values;

• its expenses, including its share of any expenses incurred jointly.

In respect of any interest in joint operations, Swan Hill District Health recognises in the financial statements:

• its assets, including its share of any assets held jointly;

• any liabilities including its share of liabilities that it had incurred;

• its revenue from the sale of its share of the output from the joint operation;

• its share of the revenue from the sale of the output by the operation; and

• the fair value of assets other than land is generally based on their depreciated replacement value.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASBs that have significant effects on the financial statements and estimates relate to:

Note 1: Summary of Significant accounting policies (continued)

The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

The financial statements are prepared in accordance with the historical cost convention, except for:

2.1 Analysis of revenue by sourceStructure:

To enable the Health Serivce to fulfill its objective it receives income based on parliamentary appropriations. The Health Serivce also receives income from the supply of services.

Note 2: Funding delivery of our services

Swan Hill District Health's overall objective is to provide appropriate services in the right setting by dedicated people with and for our community, as well as improve the quality of life to Victorians.



30 JUNE 2017

Ad

mit

ted

Pati

en

ts

No

n-

Ad

mit

ted

ED

sR

AC

Ag

ed

Care

Pri

mary

Healt

hO

ther

To

tal

2017

2017

2017

2017

2017

2017

2017

2017

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Government Grant

27,140

1,957

4,222

1,686

275

2,981

1,532

39,793

Indirect contributions by Department of Health and

Human Services

325

--

3-

1-

329

Patient and Resident Fees

1,000

1,685

57

6,271

117

120

-9,250

Donations

47

5-

1-

43

-96

Interest

106

--

155

-2

-263

Other Revenue from Operating Activities

1,209

182

11

776

266

457

2,892

Jointly Controlled Operations (refer note 4.2)

--

--

--

691

691

Business Units

--

--

--

2,347

2,347

To

tal R

even

ue f

rom

Op

era

tin

g A

cti

vit

ies

29,8

27

3,8

29

4,2

80

8,1

17

1,1

68

3,4

13

5,0

27

55,6

61

General Purpose Funds

--

--

--

496

496

Property Income

--

--

--

29

29

Interest

--

--

--

33

33

Other Revenue from Non-Operating Activities

--

--

--

90

90

To

tal R

even

ue f

rom

No

n-O

pera

tin

g A

cti

vit

ies

--

--

--

648

648

Capital P

urpose Income (excluding Interest)

--

--

--

1,805

1,805

Capital Interest

--

--

--

46

46

To

tal C

ap

ital P

urp

ose In

co

me

--

--

--

1,8

51

1,8

51

To

tal R

even

ue

29,8

27

3,8

29

4,2

80

8,1

17

1,1

68

3,4

13

7,5

26

58,1

60

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

No

te 2

.1:

An

aly

sis

of

Rev

en

ue b

y S

ou

rce

30

JU

NE

20

17

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

Ad

mit

ted

Pati

en

ts

No

n-

Ad

mit

ted

ED

sR

AC

Ag

ed

Care

Pri

mary

Healt

hO

ther

To

tal

2016

2016

2016

2016

2016

2016

2016

2016

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Government Grant

25,751

1,924

3,435

1,719

1,231

2,009

1,460

37,529

Indirect contributions by Department of Health and

Human Services

(80)

--

3-

1-

(76)

Patient and Resident Fees

1,244

-62

5,554

132

37

-7,029

Donations

87

--

4-

27

-118

Other Revenue from Operating Activities

1,297

75

10

-68

265

399

2,114

Jointly Controlled Operations (refer note 4.2)

--

--

--

770

770

Business Units

--

--

--

2,265

2,265

To

tal R

even

ue f

rom

Op

era

tin

g A

cti

vit

ies

28,2

99

1,9

99

3,5

07

7,2

80

1,4

31

2,3

39

4,8

94

49,7

49

General Purpose Funds

--

--

--

597

597

Property Income

--

--

--

24

24

Interest

101

--

116

--

34

251

Other Revenue from Non-Operating Activities

--

--

--

151

151

To

tal R

even

ue f

rom

No

n-O

pera

tin

g A

cti

vit

ies

101

--

116

--

806

1,0

23

Capital P

urpose Income (excluding Interest)

--

--

--

13,136

13,136

Capital Interest

--

--

--

61

61

To

tal C

ap

ital P

urp

ose In

co

me

--

--

--

13,1

97

13,1

97

To

tal R

even

ue

28,4

00

1,9

99

3,5

07

7,3

96

1,4

31

2,3

39

18,8

97

63,9

69

No

te 2

.1:

An

aly

sis

of

Rev

en

ue b

y S

ou

rce (

co

nti

nu

ed

)

Dep

art

me

nt

of

He

alth

an

d H

um

an S

erv

ice

s m

ake

s c

ert

ain

pa

ymen

ts o

n b

eha

lf o

f th

e H

ealth

Se

rvic

e.

Th

ese

am

oun

ts h

ave

be

en b

roug

ht

to a

cco

un

t in

de

term

inin

g t

he o

pe

ratin

g r

esu

lt fo

r th

e y

ear

by

reco

rdin

g t

hem

as r

eve

nu

e a

nd

exp

ense

s.

Income is recognised in accordance with AASB 118 R

eve

nu

e and is recognised as to the extent that it is probable that the economic benefits will flow to Swan Hill

District Health and the income can be reliably m

easured at fair value. Unearned income at reporting date is reported as income received in advance.

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

Private practice fees are recognised as revenue at the time invoices are raised.

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

Pri

vate

Pra

cti

ce F

ees:

Do

nati

on

s a

nd

Oth

er

Beq

uests

Inte

rest

Rev

en

ue

Sale

of

inv

estm

en

ts

Pati

en

t an

d R

esid

en

t F

ees:

No

te 2

.1:

An

aly

sis

of

Rev

en

ue b

y S

ou

rce (

co

nti

nu

ed

)

Ind

irect

Co

ntr

ibu

tio

ns f

rom

th

e D

ep

art

men

t o

f H

ealt

h a

nd

Hu

man

Serv

ices:

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

In accordance with AASB 1004 C

on

trib

utio

ns, Government Grants and other transfers of income (other than contributions by owners) are recognised as income

when the Health Service gains control of the underlying assets irrespective of whether conditions are im

posed on the Health Service’s use of the contributions.

Contributions are deferred as income in advance when the Health Service has a present obligation to repay them and the present obligation can be reliably

measured.

Go

vern

men

t G

ran

ts a

nd

oth

er

tran

sfe

rs o

f in

co

me (

oth

er

than

co

ntr

ibu

tio

ns b

y o

wn

ers

)

Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as the

specific restricted purpose surplus.

Interest revenue is recognised on a time proportionate basis that takes in account the effective yield of the financial asset, which allocates interest over the relevant

period.

The gain/loss on the sale of investm

ents is recognised when the investment is realised.

• Insurance is recognised as revenue following advice from the Department of Health and 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 Metropolitan

Health and Aged Care Services Division Hospital C

ircular 04/2017.

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

Cate

go

ry G

rou

ps

Oth

er

Serv

ices n

ot

rep

ort

ed

els

ew

here

- (

Oth

er) comprises services not separately classified above, including: Public health services including Laboratory

testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Koori liaison officers, immunisation and screening services, Drugs services including

drug withdrawal, counselling and the needle and syringe program, Disability services including aids and equipment and flexible support packages to people with a

disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support

services. Health and Community Initiatives also falls in this category group.

Swan Hill District Health has used the following category groups for reporting purposes for the current and previous financial years.

Ad

mit

ted

Pati

en

t S

erv

ices (

Ad

mit

ted

Pati

en

ts) comprises all acute and subacute admitted patient services, where services are delivered in public hospitals.

No

n A

dm

itte

d S

erv

ices comprises acute and subacute non admitted services, where services are delivered in public hospital clinics and provide m

odels of

integrated community care, which significantly reduces the demand for hospital beds and supports the transition from hospital to home in a safe and timely m

anner.

Em

erg

en

cy D

ep

art

men

t S

erv

ices (

ED

S) comprises all emergency department services.

Ag

ed

Care

comprises a range of in home, specialist geriatric, residential care and community based programs and support services, such as Home and

Community Care (HACC) that are targeted to older people, people with a disability, and their carers.

Pri

mary

, C

om

mu

nit

y a

nd

Den

tal H

ealt

h comprises a range of home based, community cased, comminity, primary health and dental services including health

promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy and a range of dental health services.

Resid

en

tial A

ged

Care

in

clu

din

g M

en

tal H

ealt

h (

RA

C in

cl. M

en

tal H

ealt

h) referred to in the past as psychogeriatric residential services, comprises those

Commonwealth-licensed residential aged care services in receipt of supplementary funding from the department under the m

ental health program. It excludes all

other residential services funded under the m

ental health program, such as mental health-funded community care units and secure extended care units.

No

te 2

.1:

An

aly

sis

of

Rev

en

ue b

y S

ou

rce (

co

nti

un

ed

)

3.1 Analysis of expenses by source3.2 Analysis of expense and revenue by internally managed and restricted specific purpose funds3.3 Provisions3.4 Superannuation



30 JUNE 2017

Note 3: The cost of delivering our services

This section provides an account of the expenses incurred by the Health Serivce in delivering services and outputs. In section 2, the funds that enable the provision of services were disclosed and in this note the cost associated with provision of services are recorded.

Structure:

Ad

mit

ted

Pati

en

ts

No

n-

Ad

mit

ted

ED

sR

AC

A

ged

Care

Pri

mary

Healt

hO

ther

To

tal

2017

2017

2017

2017

2017

2017

2017

2017

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Employee Expenses

16,700

2,296

4,565

7,669

1,102

3,564

2,231

38,127

Oth

er

Op

era

tin

g E

xp

en

ses

Non Salary Labour Costs

2,885

1,021

113

--

380

4,102

Supplies and Consumables

2,995

52

2,124

966

95

87

(849)

5,470

Other Expenses

2,799

160

1,632

1,314

168

1,175

1,104

8,352

To

tal E

xp

en

dit

ure

fro

m O

pera

tin

g A

cti

vit

ies

25,3

79

3,5

29

8,4

34

9,9

49

1,3

65

4,8

29

2,5

66

56,0

51

Oth

er

No

n-O

pera

tin

g E

xp

en

ses

Employee Expenses

--

--

--

259

259


--

--

--

95

95

Other Expenses

--

--

--

99

99

Expenditure for Capital P

urposes

--

--

--

110

110

Depreciation (refer note 4.4)

--

--

--

4,197

4,197

To

tal o

ther

exp

en

ses

--

--

--

4,7

60

4,7

60

To

tal E

xp

en

ses

25,3

79

3,5

29

8,4

34

9,9

49

1,3

65

4,8

29

7,3

26

60,8

11

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

No

te 3

.1:

An

aly

sis

of

Exp

en

ses b

y S

ou

rce

30

JU

NE

20

17

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

Ad

mit

ted

Pati

en

ts

No

n-

Ad

mit

ted

ED

sR

AC

Ag

ed

Care

Pri

mary

Healt

hO

ther

To

tal

2016

2016

2016

2016

2016

2016

2016

2016

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Employee Expenses

17,094

696

3,928

6,555

976

2,949

2,022

34,220

Oth

er

Op

era

tin

g E

xp

en

ses

Non Salary Labour Costs

2,915

-77

--

-87

3,079


2,969

-1,893

873

81

67

(732)

5,151

Other Expenses

5,401

(2)

563

241

172

270

982

7,627

To

tal E

xp

en

dit

ure

fro

m O

pera

tin

g A

cti

vit

ies

28,3

79

694

6,4

61

7,6

69

1,2

29

3,2

86

2,3

59

50,0

77

Oth

er

No

n-O

pera

tin

g E

xp

en

ses

Employee Expenses

--

--

--

218

218


--

--

--

103

103

Other Expenses

--

--

--

95

95

Expenditure for Capital P

urposes

--

--

--

104

104

Depreciation (refer note 4.4)

--

--

--

4,234

4,234

To

tal o

ther

exp

en

ses

--

--

--

4,7

54

4,7

54

To

tal E

xp

en

ses

28,3

79

694

6,4

61

7,6

69

1,2

29

3,2

86

7,1

13

54,8

31

Expenses are recognised as they are incurred and reported in the financial year to which they relate.

Co

st

of

go

od

s s

old

Costs of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item/s from inventories.

No

te 3

.1:

An

aly

sis

of

Exp

en

ses b

y S

ou

rce (

co

nti

nu

ed

)

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

l workcover premiums; and

l superannuation expenses which are reported differently depending upon whether employees are m

embers of defined benefit or defined contribution

plans.

Employee expenses include:

l fringe benefits tax;

Em

plo

yee e

xp

en

ses

l wages and salaries;

l leave entitlements;

l term

ination paym

ents;

No

te 3

.1:

An

aly

sis

of

Exp

en

ses b

y S

ou

rce (

co

nti

nu

ed

)

Oth

er

op

era

tin

g e

xp

en

ses

Other operating expenses generally represent the day-to-day running costs incurred in norm

al operations and include:

Su

pp

lies a

nd

co

nsu

mab

les

Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any

inventories held for distribution are expensed when distributed.

Bad

an

d d

ou

btf

ul d

eb

ts

Refer to Note 4.1 In

ve

stm

ents

an

d o

the

r fin

an

cia

l asse

ts.

Fair

valu

e o

f assets

, serv

ices a

nd

reso

urc

es p

rov

ided

fre

e o

f ch

arg

e o

r fo

r n

om

inal co

nsid

era

tio

n

Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over

them, irrespective of whether restrictions or conditions are im

posed over the use of the contributions, unless received from another agency as a

consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at its carrying amount.

Contributions in the form

of services are only recognised when a fair value can be reliably determ

ined and the services would have been purchased if not

donated.

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

Net

gain

/ (l

oss)

on

no

n-f

inan

cia

l assets

Net gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:

Rev

alu

ati

on

gain

s/ (l

osses)

of

no

n-f

inan

cia

l p

hysic

al assets

Refer to Note 4.5 P

rop

ert

y p

lant

an

d e

quip

me

nt.

Net

gain

/ (l

oss)

on

dis

po

sal o

f n

on

-fin

an

cia

l assets

Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying

amount of the asset at the time.

Net

gain

/ (l

oss)

on

fin

an

cia

l in

str

um

en

ts

Net gain/ (loss) on financial instruments includes:

l realised and unrealised gains and losses from revaluations of financial instruments at fair value;

l im

pairment and reversal of impairment for financial instruments at amortised cost refer to Note 4.1 In

vestm

ents

an

d o

the

r fin

an

cia

l ass

ets; and

l disposals of financial assets and derecognition of financial liabilities

Am

ort

isati

on

of

no

n-p

rod

uced

in

tan

gib

le a

ssets

Intangible non-produced assets with finite lives are amortised as an ‘other economic flow’ on a systematic basis over the asset’s useful life. Amortisation begins

when the asset is available for use that is when it is in the location and condition necessary for it to be capable of operating in the m

anner intended by

management.

No

te 3

.1:

An

aly

sis

of

Exp

en

ses b

y S

ou

rce (

co

nti

nu

ed

)

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

Goodwill and intangible assets with indefinite useful lives (and intangible assets not available for use) are tested annually for impairment and whenever there is

an indication that the asset may be im

paired. Refer to Note 4.1 In

vestm

ents

an

d o

the

r fin

an

cia

l ass

ets.

Imp

air

men

t o

f n

on

-fin

an

cia

l assets

Rev

alu

ati

on

s o

f fi

nan

cia

l in

str

um

en

t at

fair

valu

e

Refer to Note 7.1 F

ina

ncia

l in

stru

me

nts

.

Sh

are

of

net

pro

fits

/ (l

osses)

of

asso

cia

tes a

nd

jo

intl

y c

on

tro

lled

en

titi

es, exclu

din

g d

ivid

en

ds.

Refer to Note 1 (d)

Princip

les

of

con

so

lida

tion.

Oth

er

gain

s/ (l

osses)

fro

m o

ther

eco

no

mic

flo

ws

Other gains/ (losses) include:

Dere

co

gn

itio

n o

f fi

nan

cia

l liab

ilit

ies

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different term

s, or the term

s of an existing liability are

substantially m

odified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference

in the respective carrying amounts is recognised as an expense in the consolidated comprehensive operating statement.

Fin

an

cia

l g

uara

nte

e

Paym

ents that are contingent under financial guarantee contracts are recognised as a liability at the time the guarantee is issued. The liability is initially

measured at fair value, and if there is a m

aterial increase in the likelihood that the guarantee m

ay have to be exercised, then it is m

easured at the higher of the

amount determ

ined in accordance with AASB 137 P

rovi

sio

ns,

Co

ntin

ge

nt

Lia

bili

ties

an

d C

on

ting

en

t A

sse

ts and the amount initially recognised less cumulative

amortisation, where appropriate.

In the determ

ination of fair value, consideration is given to factors including the overall capital m

anagement/prudential supervision framework in operation, the

protection provided by the State Government by way of funding should the probability of default increase, probability of default by the guaranteed party and the

likely loss to the Health Service in the event of default.

No

te 3

.1:

An

aly

sis

of

Exp

en

ses b

y S

ou

rce (

co

nti

nu

ed

)

l the revaluation of the present value of the long service leave liability due to changes in the bond rate m

ovements, inflation rate m

ovements and the

impact of changes in probability factors; and

l transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

30

JU

NE

20

17

No

n A

dm

itte

d S

erv

ices comprises acute and subacute non admitted services, where services are delivered in public hospital clinics and provide m

odels of

integrated community care, which significantly reduces the demand for hospital beds and supports the transition from hospital to home in a safe and timely

manner.

Em

erg

en

cy D

ep

art

men

t S

erv

ices (

ED

S) comprises all emergency department services.

Ag

ed

Care

comprises a range of in home, specialist geriatric, residential care and community based programs and support services, such as Home and

Community Care (HACC) that are targeted to older people, people with a disability, and their carers.

Pri

mary

, C

om

mu

nit

y a

nd

Den

tal H

ealt

h comprises a range of home based, community cased, comminity, primary health and dental services including health

promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy and a range of dental health services.

Resid

en

tial A

ged

Care

in

clu

din

g M

en

tal H

ealt

h (

RA

C in

cl. M

en

tal H

ealt

h) referred to in the past as psychogeriatric residential services, comprises those

Commonwealth-licensed residential aged care services in receipt of supplementary funding from the department under the m

ental health program. It excludes

all other residential services funded under the m

ental health program, such as mental health-funded community care units and secure extended care units.

Oth

er

Serv

ices n

ot

rep

ort

ed

els

ew

here

- (

Oth

er) comprises services not separately classified above, including: Public health services including Laboratory

testing, Blood Borne Viruses / Sexually Transmitted Infections clinical services, Koori liaison officers, immunisation and screening services, Drugs services

including drug withdrawal, counselling and the needle and syringe program, Disability services including aids and equipment and flexible support packages to

people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and

various support services. Health and Community Initiatives also falls in this category group.

Swan Hill District Health has used the following category groups for reporting purposes for the current and previous financial years:

Ad

mit

ted

Pati

en

t S

erv

ices (

Ad

mit

ted

Pati

en

ts) comprises all acute and subacute admitted patient services, where services are delivered in public hospitals.

Cate

go

ry G

rou

ps

No

te 3

.1:

An

aly

sis

of

Exp

en

ses b

y S

ou

rce (

co

nti

nu

ed

)

2017 2016 2017 2016$'000 $'000 $'000 $'000

Commercial ActivitiesCatering 111 125 147 170Cafeteria 43 39 90 93Salary Packaging 149 156 262 338Property Expense/Revenue 88 77 33 27Other - 19 117 178

TOTAL 391 416 649 806

Expense Revenue



30 JUNE 2017

Note 3.2: Analysis of expense and revenue by internally managed and restricted specific

purpose funds for services supported by hospital and community initiatives


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2017

Note 3.3: Employee benefits in the balance sheet

2017 2016$'000 $'000

Current Provisions

Employee Benefits (i)

Annual leave

- Unconditional and expected to be settled wholly within 12 months (ii) 2,231 2,075

- Unconditional and expected to be settled wholly after 12 months (iii) 856 807

Long service leave

- Unconditional and expected to be settled wholly within 12 months (ii) 549 434

- Unconditional and expected to be settled wholly after 12 months (iii) 4,018 3,751

Accrued Days Off

- Unconditional and expected to be settled wholly within 12 months (ii) 111 80

Accrued Salaries and Wages

- Unconditional and expected to be settled wholly within 12 months (ii) 1,097 863 8,862 8,010

Provisions related to Employee Benefit On-Costs

- Unconditional and expected to be settled within 12 months (ii) 335 298

- Unconditional and expected to be settled after 12 months (iii) 564 525

899 823

Total Current Provisions 9,761 8,833

Non-Current Provisions

Employee Benefits (i) 1,016 942

Provisions related to Employee Benefit On-Costs 118 109

Total Non-Current Provisions 1,134 1,051

Total Provisions 10,895 9,884

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costsUnconditional LSL Entitlement 5,096 4,667

Annual Leave Entitlements 3,444 3,214

Accrued Wages and Salaries 1,097 863

Accrued Days Off 124 89

Non-Current Employee Benefits and related on-costs

Conditional Long Service Leave Entitlements (ii) 1,134 1,051

Total Employee Benefits and Related On-Costs 10,895 9,884

Notes:

(i) Provisions for employee benefits consist of amounts for annual leave and long service leave accrued by employees, not

including on-costs.

(ii) The amounts disclosed are nominal amounts

(iii) The amounts disclosed are discounted to present values



2017 2016$'000 $'000

(b) Movements in provisions

Movement in Long Service Leave:Balance at start of year 5,717 5,562Provision made during the year 1,123 603 - Revaluations (61) (14) - Expense recognising Employee Service - -Settlement made during the year (549) (434)Balance at end of year 6,230 5,717

l Present value – if the Health Service does not expect to wholly settle within 12 months.

l Present value – where the entity does not expect to settle a component of this current liability within 12 months.

l Undiscounted value – if the health service expects to wholly settle within 12 months; and

Provisions

Provisions are recognised when the Health Service has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.

When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.

Employee benefits

This provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.

Wages and salaries, annual leave, sick leave and accrued days off

Liabilities for wages and salaries, including non-monetary benefits, annual leave, and accumulating sick leave are all recognised in the provision for employee benefits as ‘current liabilities’, because the Health Service does not have an unconditional right to defer settlements of these liabilities.

The components of this current LSL liability are measured at:

Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. An unconditional right arises after a qualifying period.

Liability for LSL is recognised in the provision for employee benefits.

Long service leave (LSL)

Note 3.3: Employee benefits in the balance sheet (continued)

Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:

l Undiscounted value – if the Health Service expects to wholly settle within 12 months; or



Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.

Note 3.3: Employee benefits in the balance sheet (continued)

Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in estimations e.g. bond rate movements, inflation rate movements and changes in probability factors which are then recognised as other economic flow.

Termination benefits

Provision for on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits.

On-costs related to employee expense

The Health Service recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment.

2017 2016 2017 2016$'000 $'000 $'000 $'000

(i) Defined benefit plans:Health Super Fund 153 119 6 3

Defined contribution plans:First State Super 1,931 1,983 74 60Hesta 679 574 24 17Other 196 161 8 4Total 2,959 2,837 112 84


The name, details and amounts expense in relation to the major employee superannuation funds and contributions made by the Health Service are as detailed in the table above:

However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the comprehensive operating statement of the Health Service.

Contribution

Outstanding at Year

End

Paid Contribution for

the Year

(i) The bases for determining the level of contributions is determined by the various actuaries of the defined benefit superannuation plans.

The Health Service does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefits liabilities in its disclosure for administered items.

Employees of the Health Service are entitled to receive superannuation benefits and the Health Services contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.

In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.

Defined contribution superannuation plans

Note 3.4: Superannuation

30 JUNE 2017NOTES TO THE FINANCIAL STATEMENTS

Superannuation liabilities

Swan Hill District Health does not recognise any unfunded defined benefit liability in respect of the superannuation plans because the Health Service 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.

Employees of Swan Hill District Health are entitled to receive superannuation benefits and Swan Hill

District Health contributes to both the defined benefit and defined contribution plans. The defined

benefit plan(s) provide benefits based on years of service and final average salary.

The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based upon actuarial advice.

Defined benefit superannuation plans

The name and details of the major employee superannuation funds and contributions made by Swan Hill District Health are disclosed in the table above.

Structure:

4.4 Depreciation4.3 Property, plant and equipment

Note 4: Key Assets to support service delivery

4.2 Jointly Controlled Operations



The Health Service controls infrastructure and other investments that are utilised in fulfilling its objective and conducting its activities. They represent the key resources that have been entrusted to the Health Service to be utilised for delivery of those outputs.

4.1 Investments and other financial assets

2017 2016 2017 2016$'000 $'000 $'000 $'000

CURRENT

Term Deposit

Aust. Dollar Term Deposits > 3 months (i) 7,675 10,913 7,675 10,913

Total Current 7,675 10,913 7,675 10,913TOTAL 7,675 10,913 7,675 10,913

Represented by:Health Service Investments 1,044 5,690 1,044 5,690Accommodation Bonds 6,631 5,223 6,631 5,223

TOTAL 7,675 10,913 7,675 10,913

Notes:

Loans and Receivables

l financial assets at fair value through profit or loss;

l held-to-maturity;

l loans and receivables; and

l available-for-sale financial assets.

(a) Ageing analysis of investments and other financial assets

30 JUNE 2017



Operating Fund Total Fund

Note 4.1: Investments and other financial assets

(i) Term deposits under 'investments and other financial assets' class include only term deposits with maturity greater than 90 days.

Hospital investments must be in accordance in Standing Direction 3.7.2 – Treasury and Investment Risk Management. Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.

Swan Hill District Health classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.

All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment.

Swan Hill District Health assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

Investments and other financial assets

Please refer to Note 7.1 for the nature and extent of credit risk arising from investments and other financial assets

(b) Nature and extent of risk arising from investments and other financial assets

Please refer to Note 7.1 for the ageing analysis of investments and other financial assets.

Investments are classified in the following categories:

30 JUNE 2017



Where the Health Service has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Health Service’s continuing involvement in the asset.

The allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.

At the end of each reporting period, the Health Service assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Impairment of financial assets

l the Health Service has transferred its rights to receive cash flows from the asset and either:

Note 4.1: Investments and other financial assets (continued)

(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

(a) has transferred substantially all the risks and rewards of the asset; or

Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:

l the rights to receive cash flows from the asset have expired; or

l the Health Service retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or

2017 2016Name of Entity Principal Activity % %Loddon Mallee Rural Health Alliance Information Systems 9.05 9.06

2017 2016$'000 $'000

ASSETSCurrent AssetsCash and Cash Equivalents 500 458 Receivables 17 16 GST Receivable 11 10 Inventories 4 2 Prepayments 58 50 Total Current Assets 590 536

Non-Current Assets Property, Plant and Equipment 14 19 Total Non-Current Assets 14 19 TOTAL ASSETS 604 555

LIABILITIESCurrent LiabilitiesCreditors 100 95 Accrued Expenses 13 10 Total Current Liabilities 113 105 TOTAL LIABILITIES 113 105 NET ASSETS 491 450

2017 2016$'000 $'000

Revenue from Operating Activities 691 770 Expenditure (624) (667) Net Result Before Capital and Specific Items 67 103

Depreciation (11) (25) Expenditure using Capital Purpose Income (14) (139) NET RESULT FOR THE YEAR 42 (61)

Swan Hill District Health's interest in assets employed in the above jointly controlled operations and assets is detailed below. The amounts are included in the financial statements under their respective asset categories:

Swan Hill District Health interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:

Contingent Assets and Contingent Liabilities

Loddon Mallee Rural Health Alliance does not have any known contingent assets or contingent liabilities at 30th June, 2017.



Note 4.2 Jointly Controlled Operations and Assets

Ownership Interest

2017 2016$'000 $'000

LandLand at Cost 295 295Land at Fair Value 3,534 3,534

Total Land 3,829 3,829

Buildings

Buildings at Fair Value 55,757 54,081Less Accumulated Depreciation (8,374) (5,357)

Total Buildings 47,383 48,724

Land ImprovementsLand Improvements at Fair Value 454 454Less Accumulated Depreciation (45) (30)

Land Improvements at Cost 3 3Less Accumulated Depreciation - -

Total Land Improvements 412 427

Plant and Equipment

Plant and Equipment at Fair Value 6,129 5,577Less Accumulated Depreciation (3,209) (2,812)

Total Plant and Equipment 2,920 2,765

Medical EquipmentMedical Equipment at Fair Value 5,504 5,507Less Accumulated Depreciation (3,076) (2,753)

Total Medical Equipment 2,428 2,754

Motor Vehicles

Motor Vehicles at Fair Value 915 944Less Accumulated Depreciation (543) (581)

Total Cultural Assets 372 363

Interest In Jointly Controlled OperationsAssets from Jointly Controlled Operations at Fair Value 75 81Less Accumulated Depreciation (61) (62)Total Interest in Jointly Controlled Operations 14 19

Work In ProgressBuildings Under Construction 3,059 2,191

Total Work in Progress 3,059 2,191TOTAL 60,417 61,072


Note 4.3: Property, plant and equipment

(a) Gross carrying amount and accumulated depreciation

30 JUNE 2017


Lan

dL

an

d

Imp

rov

em

en

ts

Bu

ild

ing

sP

lan

t an

d

Eq

uip

men

t

Med

ical

Eq

uip

men

t

Mo

tor

Veh

icle

s

Wo

rk In

Pro

gre

ss

Inte

rest

in

Jo

intl

y

Co

ntr

olled

Op

era

tio

ns

To

tal

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Bala

nce a

t 1 J

uly

2015

3,7

40

441

37,2

61

1,7

71

2,3

04

465

5,6

23

43

51,6

48

Additions

89

1

257

273

832

110

12,127

1

13,690

Disposals

- -

-

-

-

(32)

-

-(32)

Net Transfers between Classes

- -

13,966

1,490

103

-(15,559)

--

Depreciation (Note 4.4)

-(15)

(2,760)

(769)

(485)

(180)

-(25)

(4,234)

Bala

nce a

t 1 J

uly

2016

3,8

29

427

48,7

24

2,7

65

2,7

54

363

2,1

91

19

61,0

72

Additions

--

16

492

168

196

2,746

6

3,624

Disposals

--

-(11)

(36)

(35)

--

(82)

Net Transfers between Classes

--

1,659

164

55

-(1,878)

--

Depreciation (Note 4.4)

-(15)

(3,016)

(490)

(513)

(152)

-(11)

(4,197)

Bala

nce a

t 30 J

un

e 2

017

3,8

29

412

47,3

83

2,9

20

2,4

28

372

3,0

59

14

60,4

17

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SW

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14.

An independent valuation of Swan Hill District Health's land and buildings was perform

ed by the Valuer-General V

ictoria to determ

ine the fair value of the land and

buildings. The valuation, which conform

s to Australian Valuation Standards, was determ

ined by reference to the amounts for which assets could be exchanged between

knowledgeable willing parties in an arm

's length transaction. The valuation was based on independent assessments.

Lan

d a

nd

bu

ild

ing

s c

arr

ied

at

valu

ati

on

(b)

Reco

ncilia

tio

ns o

f th

e c

arr

yin

g a

mo

un

ts o

f each

cla

ss o

f asset

Level 1 (i) Level 2 (i) Level 3 (i)

$'000 $'000 $'000 $'000

Land at fair valueNon-specialised land 2,393 - 1,368 1,025 Specialised land 1,436 - - 1,436

Total of land at fair value 3,829 - 1,368 2,461

Land Improvements at fair valueLand Improvements at fair value 412 - 412 -

Total of land improvements at fair value 412 - 412 -

Buildings at fair valueNon-specialised buildings 1,302 - 1,302 -Specialised buildings 46,081 - 754 45,327

Total of building at fair value 47,383 - 2,056 45,327

Plant and equipment at fair valuePlant equipment and vehicles at fair value- Vehicles (ii) 372 - - 372 - Plant and equipment 2,920 - - 2,920

3,292 - - 3,292

Medical equipment at fair value - Medical Equipment 2,428 - - 2,428

Total medical equipment at fair value 2,428 - - 2,428

Work In Progress- Buildings at fair value 3,059 - - 3,059

Total Work in progress at fair value 3,059 - - 3,059 60,403 - 3,836 56,567

Note

Note 4.3: Property, plant and equipment (continued)

30 JUNE 2017



(c) Fair value measurement hierarchy for assets

Fair value measurement at end of

reporting period using:Carrying

amount as at

30 June 2017

There have been no transfers between levels during the period.

Total of plant, equipment and vehicles at fair value

(ii) Vehicles are categorised to Level 3 assets if the depreciated replacement cost is used in estimating the fair value. However, entities should consult with an independent valuer in determining whether a market approach is appropriate for vehicles with an active resale market available. If yes, a Level 2 categorisation for such vehicles would be appropriate.

(i) Classified in accordance with the fair value hierarchy,

30 JUNE 2017



Level 1 (i) Level 2 (i) Level 3 (i)

$'000 $'000 $'000 $'000

Land at fair valueNon-specialised land 2,393 - 1,368 1,025 Specialised land 1,436 - - 1,436

Total of land at fair value 3,829 - 1,368 2,461

Land Improvements at fair valueLand Improvements at fair value 427 - 427 -

Total of land improvements at fair value 427 - 427 -

Buildings at fair valueNon-specialised buildings 1,457 - 1,457 -Specialised buildings 47,267 - 595 46,672

Total of building at fair value 48,724 - 2,052 46,672

Plant and equipment at fair valuePlant equipment and vehicles at fair value- Vehicles (ii) 363 - - 363 - Plant and equipment 2,765 - - 2,765

3,128 - - 3,128

Medical equipment at fair value - Medical Equipment 2,754 - - 2,754

Total medical equipment at fair value 2,754 - - 2,754

Work In Progress- Buildings at fair value 2,191 - 2,191 -

Total Work in progress at fair value 2,191 - 2,191 -61,053 - 6,038 55,015

Note

Total of plant, equipment and vehicles at fair value

l the fair value of land, buildings, infrastructure, plant and equipment, (refer to Note 7.1);

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASBs that have significant effects on the financial statements and estimates relate to:

There have been no transfers between levels during the period.

(ii) Vehicles are categorised to Level 3 assets if the depreciated replacement cost is used in estimating the fair value. However, entities should consult with an independent valuer in determining whether a market approach is appropriate for vehicles with an active resale market available. If yes, a Level 2 categorisation for such vehicles would be appropriate.

(i) Classified in accordance with the fair value hierarchy,

Carrying

amount as at

30 June 2016

Fair value measurement at end of

reporting period using:


(c) Fair value measurement hierarchy for assets (continued)

30 JUNE 2017



The fair value measurement is based on the following assumptions:

l that the transaction to sell the asset or transfer the liability takes place either in the principal market (or the most advantageous market, in the absence of the principal market), either of which must be accessible to the Health Service at the measurement date;

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair value measurement

l the fair value of land, buildings, plant and equipment (refer to Note 7.1);

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 and assumptions made by management in the application of AASBs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period, relate to:

Swan Hill District Health, in conjunction with VGV monitors the changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required.

The Valuer-General Victoria (VGV) is Swan Hill District Health’s independent valuation agency.

l Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

l Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

In addition, Swan Hill District Health determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, Swan Hill District Health has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

l Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Consistent with AASB 13 Fair Value Measurement , Swan Hill District Health determines the policies and

procedures for both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant FRDs.



The fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

l that the Health Service uses the same valuation assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

30 JUNE 2017



l Changed acts, regulations, local law or such instrument which affects or may affect the use or development of the asset;

External factors:

These indicators, as a minimum, include:

Therefore, an assessment of the HBU will be required when the indicators are triggered within a reporting period, which suggest the market participants would have perceived an alternative use of an asset that can generate maximum value. Once identified, Health Services are required to engage with VGV or other independent valuers for formal HBU assessment.

In accordance with AASB 13 paragraph 29, Health Services can assume the current use of a non-financial physical asset is its HBU unless market or other factors suggest that a different use by market participants would maximise the value of the asset.



l Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

l Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

l Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised

Health Services need to use valuation techniques that are appropriate for the circumstances and where there is

Valuation hierarchy

In addition, Health Services need to assess the HBU as part of the 5-year review of fair value of non-financial physical assets. This is consistent with the current requirements on FRD 103F Non-financial physical assets and

FRD 107B Investment properties .

Consideration of highest and best use (HBU) for non-financial physical assets

In considering the HBU for non-financial physical assets, valuers are probably best placed to determine highest and best use (HBU) in consultation with Health Services. Health Services and their valuers therefore need to have a shared understanding of the circumstances of the assets. A Health Service has to form its own view about a valuer’s determination, as it is ultimately responsible for what is presented in its audited financial statements.

Judgements about highest and best use must take into account the characteristics of the assets concerned, including restrictions on the use and disposal of assets arising from the asset’s physical nature and any applicable legislative/contractual arrangements.

l Evidence that suggests that the asset might be sold or demolished at reaching the late stage of an asset’s life cycle.

l Evidence that suggest the current use of an asset is no longer core to requirements to deliver a Health Service’s service obligation and;

l Changes in planning scheme, including zones, reservations, overlays that would affect or remove the restrictions imposed on the asset’s use from its past use;

30 June 2017Land Buildings

Plant and

equipment

Medical

equipment

$'000 $'000 $'000 $'000

Opening Balance 2,461 46,672 3,128 2,754Purchases (sales) - 16 642 126Transfers in (out) of Level 3 - 1,655 164 54

Gains or losses recognised in net result- Depreciation - (3,016) (642) (506)

Subtotal 2,461 45,327 3,292 2,428Closing Balance 2,461 45,327 3,292 2,428

Unrealised gains/(losses) on non-financial assets - - - -

2,461 45,327 3,292 2,428

30 June 2016Land Buildings

Plant and

equipment

Medical

equipment

$'000 $'000 $'000 $'000

Opening Balance 2,461 35,526 2,236 2,304Purchases (sales) - 32 351 832Transfers in (out) of Level 3 - 13,967 1,490 103

Gains or losses recognised in net result- Depreciation - (2,853) (949) (485)- Impairment loss - - - -

Subtotal 2,461 46,672 3,128 2,754Closing Balance 2,461 46,672 3,128 2,754

Unrealised gains/(losses) on non-financial assets - - - -

2,461 46,672 3,128 2,754

Level 3 fair value inputs are unobservable valuation inputs for an asset or liability. These inputs require significant judgement and assumptions in deriving fair value for both financial and non-financial assets.

Identifying unobservable inputs (level 3) fair value measurements



(d) Reconciliation of Level 3 fair value


30 JUNE 2017

Unobservable inputs shall be used to measure fair value to the extent that relevant observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. However, the fair value measurement objective remains the same, i.e., an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability. Therefore, unobservable inputs shall reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk.



30 JUNE 2017

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.

The market approach is also used for specialised land and specialised buildings although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore these assets are classified as Level 3 under the market based direct comparison approach.

Specialised land and specialised buildings

To the extent that non-specialised land, non-specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach.

For artwork, valuation of the assets is determined by a comparison to similar examples of the artist’s work in existence throughout Australia and research on price paid for similar examples offered at auction or through art galleries in recent years.

Non-specialised land, non-specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.

Non-specialised land, non-specialised buildings and artwork

For non-specialised land and non-specialised buildings, an independent valuation was performed by independent valuers [name valuer] to determine the fair value using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. An appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 30 June 2014.

Assumptions about risk include the inherent risk in a particular valuation technique used to measure fair value (such as a pricing risk model) and the risk inherent in the inputs to the valuation technique. A measurement that does not include an adjustment for risk would not represent a fair value measurement if market participants would include one when pricing the asset or liability i.e., it might be necessary to include a risk adjustment when there is significant measurement uncertainty. For example, when there has been a significant decrease in the volume or level of activity when compared with normal market activity for the asset or liability or similar assets or liabilities, and the Health Service has determined that the transaction price or quoted price does not represent fair value.

A Health Service shall develop unobservable inputs using the best information available in the circumstances, which might include the Health Service’s own data. In developing unobservable inputs, a Health Service may begin with its own data, but it shall adjust this data if reasonably available information indicates that other market participants would use different data or there is something particular to the Health Service that is not available to other market participants. A Health Service need not undertake exhaustive efforts to obtain information about other market participant assumptions. However, a Health Service shall take into account all information about market participant assumptions that is reasonably available. Unobservable inputs developed in the manner described above are considered market participant assumptions and meet the object of a fair value measurement.


(d) Reconciliation of Level 3 fair value (continued)



30 JUNE 2017

For all assets measured at fair value, the current use is considered the highest and best use.

There were no changes in valuation techniques throughout the period to 30 June 2017.

Plant and equipment is held at carrying amount (depreciated cost). When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying amount.

Plant and equipment

The Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates during use to reflect the consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from the carrying amount (depreciated cost).

Vehicles

An independent valuation of the Health Service’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2014.

For the health services, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised buildings are classified as Level 3 for fair value measurements.


(d) Reconciliation of Level 3 fair value (continued)

Valuation techniqueSignificant

unobservable inputsSpecialised landLand Market /Direct

Comparison approachCommunity Service Obligation (CSO) adjustment

Specialised buildingsBuildings Depreciated

replacement costDirect cost per square metre

Useful life of specialised buildings

Plant and equipment at fair valuePlant and equipment Depreciated

replacement costCost per unit

Useful life of PPE

Vehicles Vehicles Depreciated

replacement cost Cost per unit

Useful life of vehicles

Medical equipment at fair valueMedical Equipment Depreciated

replacement costCost per unit

Useful life of medical equipment

More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 4.3 below.

The significant unobservable inputs have remain unchanged from 2016.

Refer to Note 7.4 for guidance on fair value measurement indicative expectations.



(e) Description of significant unobservable inputs to Level 3 valuations:


30 JUNE 2017

Property, plant and equipment

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and accumulated impairment loss. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government are transferred at their carrying amount.

Crown land is measured at fair value with regard to the property’s highest and best use after due

consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply. Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best uses.

The initial cost for non-financial physical assets under finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.



30 JUNE 2017

Revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset.

In accordance with FRD 103F, Swan Hill District Health's non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.

Revaluation decrements are recognised in ‘other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment.

Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly in equity to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result.

Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103F Non-

current physical assets . This revaluation process normally occurs at least every five years, based upon the

asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset’s carrying amount and fair value.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.

Revaluations of non-current physical assets


(e) Description of significant unobservable inputs to Level 3 valuations (continued):

Plant, equipment and vehicles are recognised initially at cost and subsequently measured at fair value

less accumulated depreciation and accumulated impairment loss. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned.

Land and buildings are recognised initially at cost and subsequently measured at fair value less

accumulated depreciation and accumulated impairment loss.

2017 2016$'000 $'000

Depreciation

Buildings 3,016 2,760 Land Improvements 15 15

Plant and Equipment 368 384 Medical Equipment 513 485 Furniture and Fittings 122 385 Motor Vehicles 152 180 Depreciation from Jointly Controlled Operations 11 25

Total Depreciation 4,197 4,234

40 to 45 years 40 to 45 years8 to 40 years 8 to 40 years

8 to 25 years 8 to 25 years8 to 25 years 8 to 25 years4 to 20 years 4 to 20 years4 to 20 years 4 to 20 years4 to 5 years 4 to 5 years4 to 20 years 4 to 20 years4 to 9 years 4 to 9 years

As part of the Buildings valuation, building values were separated into components and each component assessed for its useful life which is represented above.

- Structure Shell Building Fabric - Site Engineering Services and Central Plant

Buildings

Motor VehiclesFurniture and FittingsComputer and CommunicationMedical EquipmentPlant and Equipment - Trunk Reticulated Building Systems - Fit outCentral Plant

Note 4.4 Depreciation

30 JUNE 2017



2017 2016

All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives are depreciated (i.e. excludes land assets held for sale, and investment properties). Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.

Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives, residual value and depreciation method for all assets are reviewed at least annually, and adjustments made where appropriate. This depreciation charge is not funded by the Department of Health and Human Services. Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives.

The following table indicates the expected useful lives of non-current assets on which the depreciation charges are based.

Note 5: Other assets and liabilities

30 JUNE 2017



5.5 Payables

This section set out those assets and liabilities that arose from the Health Service's operations.

5.1 Receivables5.2 Inventories5.3 Other liabilities5.4 Prepayments and other assets

Structure:

2017 2016$'000 $'000

CURRENTContractualInter Hospital Debtors 160 193 Trade Debtors 816 119 Patient Fees 496 797 Debtor - Superannuation 2 3 Accrued Investment Income 24 35 Accrued Revenue Dental Health - 54 Less Allowance for Doubtful DebtsPatient Fees (5) (42)Receivables from Jointly Controlled Operations 28 25

1,521 1,184 StatutoryGST Receivable - 224

Accrued Revenue - Department of Health and Human Services 169 626 Accrued Revenue - Commonwealth 32 64

201 914 TOTAL CURRENT RECEIVABLES 1,722 2,098

NON CURRENTStatutoryLong Service Leave - Department of Health and Human Services 1,013 790

TOTAL NON-CURRENT RECEIVABLES 1,013 790 TOTAL RECEIVABLES 2,735 2,888

2017 2016$'000 $'000

Balance at beginning of year 42 44 Amounts written off during the year (85) (32)Amounts recovered during the year - 4 Increase/(decrease) in allowance recognised in net result 48 26

Balance at end of year 5 42

Note 5.1: Receivables

30 JUNE 2017



(a) Movement in the Allowance for doubtful debts

Receivables consist of:

Please refer to Note 7.1 for the nature and extent of credit risk arising from contractual receivables.

(c) Nature and extent of risk arising from receivables

Please refer to Note 7.1 for the ageing analysis of contractual receivables(b) Ageing analysis of receivables

- statutory receivables, which includes predominantly amounts owing from the Victorian Government and goods and services Tax (“GST”) input Tax credits recoverable.

- contractual receivables, which includes mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables; and

30 JUNE 2017



Note 5.1: Receivables (continued)

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment.

2017 2016$'000 $'000

Pharmaceuticals At cost 58 58

Main Store Inventory At cost 131 137

Jointly Controlled Operations Inventory At cost 4 2

TOTAL INVENTORIES 193 197

Note 5.2: Inventories

30 JUNE 2017



Cost for all other inventory is measured on the basis of weighted average cost.

The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value.

Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It excludes depreciable assets.

2017 2016$'000 $'000

CURRENTMonies Held in Trust* - Primary Care Partnership* 269 298 - Residents - Nursing Home / Hostel* 32 30 - Accommodation Bonds* 6,631 5,223

Total Current 6,932 5,551 Total Other Liabilities 6,932 5,551

* Total Monies Held in TrustRepresented by the following assets:

Cash Assets (refer to Note 6.3) 301 328

Investment and Other Financial Assets (refer to Note 4.1) 6,631 5,223

TOTAL 6,932 5,551

Note 5.3: Other liabilities

30 JUNE 2017



2017 2016CURRENT $'000 $'000Prepayments 1,120 986

TOTAL CURRENT OTHER ASSETS 1,120 986

TOTAL OTHER ASSETS 1,120 986



Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.

Note 5.4: Prepayments and other non-financial assets

30 JUNE 2017

2017 2016$'000 $'000

CURRENTContractualTrade Creditors 1,535 1,618 Accrued Expenses 667 680 Deposits on Hire Equipment 3 3 Jointly Controlled Operations Payables 114 105

2,319 2,406 StatutoryDepartment of Health and Human Services- Payable to Government 2,405 71

2,405 71 TOTAL CURRENT 4,724 2,477

TOTAL PAYABLES 4,724 2,477


30 JUNE 2017


Note 5.5: Payables

Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

l statutory payables, such as goods and services tax and fringe benefits tax payables.

l contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to the Health Service prior to the end of the financial year that are unpaid, and arise when the Health Service becomes obliged to make future payments in respect of the purchase of those goods and services. The normal credit terms for accounts payable are usually Nett 30 days.

Payables consist of:

Please refer to note 7.1 for the nature and extent of risks arising from contractual payables

(b) Nature and extent of risk arising from payables

Please refer to Note 7.1 for the ageing analysis of contractual payables

(a) Maturity analysis of payables

This section provides information on the sources of finance utilised by the Health Service during its operations, along with interest expenses (the cost of borrowings) and other information related to financing activities of the Health Service.

Note 6: How we finance our operations

30 JUNE 2017



6.1 Cash and cash equivalents6.2 Commitments for expenditure

This section included disclosures of balances that are financial instruments (such as borrowings and cash balances). Note: 7.1 provides additional, specific financial instrument disclosures.

Structure:

2017 2016$'000 $'000

Cash on hand 2 4 Cash at bank 3,927 2,837 Aust. Dollar Term Deposits < 3 months 4,773 - Cash in Jointly Controlled Operations 501 458 Total Cash and Cash Equivalents 9,203 3,299

Represented by:Cash held by Swan Hill District Health 8,401 2,513 Cash in Jointly Controlled Operations 501 458

Cash for Health Service Operations (as per Cash Flow Statement) 8,902 2,971

Cash for Monies Held in Trust - Cash on Hand 1 1 - Cash at Bank 300 327 Total Monies Held in Trust 301 328

Total Cash and Cash Equivalents 9,203 3,299

Note 6.1: Cash and Cash Equivalents

30 JUNE 2017



For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities on the balance sheet.

Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash with an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.

Swan Hill District Health has a bank overdraft facility with the NAB for the amount of $1 million. The amount unused at 30 June 2017 was $1 million.

2017 2016$'000 $'000

Capital expenditure commitmentsPayable:Buildings 1,116 520Motor Vehicle - 22Plant and Machinery 34 381

Total capital expenditure commitments 1,150 923

2017 2016$'000 $'000

Capital expenditure commitments payableLess than one (1) year 1,150 923

Total capital expenditure commitments 1,150 923

Other expenditure commitments payablePayableComputer 9 10

Total Other Expenditure Commitments 9 10

Less than one (1) year 9 10

TOTAL 9 10

Total commitments (exclusive of GST) 1,159 933


a) Commitments

(b) Commitments payable

Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note at their nominal value and are inclusive of the GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.

Note 6.2: Commitments for expenditure

30 JUNE 2017


Note 7: Risks, contingencies & valuation uncertainties

30 JUNE 2017



Structure:

7.2 Net gain / (loss) on disposal of non-financial assets7.3 Contingent assets and contingent liabilities7.4 Fair value determination

Introduction

The Health Service is exposed to risk from its activites and outside factors. In addition, it is often necessary to make judgements and estimates associated with recognition and measurement of items in the financial statements. This section sets ot financial instrument specific information, (including exposures to financial risk) as well as those items that are contingent in nature or require a higher level of judgement to be applied, which for the hospital is related mainly to fair value determination.

7.1 Financial Instruments

Contractual

financial

assets -

loans and

receivables

Contractual

financial

liabilities at

amortised

cost

Total

2017 $'000 $'000 $'000Contractual Financial Assets

Cash and cash equivalents 9,203 - 9,203Receivables - Trade Debtors 816 - 816 - Other Receivables 705 - 705

Other Financial Assets - Term Deposit 7,675 - 7,675

Total Financial Assets (i) 18,399 - 18,399

Financial LiabilitiesPayables - 2,319 2,319Other Financial Liabilities

- Accomodation bonds - 6,631 6,631 - Other - 301 301

Total Financial Liabilities (ii) - 9,251 9,251

Note 7.1: Financial Instruments

30 JUNE 2017



Categorisation of financial instruments

The main purpose in holding financial instruments is to prudentially manage Swan Hill District Health Service financial risks within the government policy parameters.

The Health Service uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility for the identification and management of financial risks rest with the Audit Committee.

The Health Service's main financial risks include credit risk, liquidity risk, and interest rate risk. The Health Service manages these financial risks in accordance with its financial risk management policy.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

- Accommodation Bonds

- Payables (excluding statutory receivables)

- Receivables (excluding statutory receivables)

- Terms Deposits

- Cash Assets

Swan Hill District Health's principal financial instruments comprise of :

(a) Financial risk management objectives and policies

30 JUNE 2017



Contractual

financial

assets -

loans and

receivables

Contractual

financial

liabilities at

amortised

cost

Total

2016 $'000 $'000 $'000Contractual Financial Assets

Cash and cash equivalents 3,266 - 3,266Receivables - Trade Debtors 119 - 119 - Other Receivables 1,065 - 1,065

Other Financial Assets - Term Deposit 10,913 - 10,913

Total Financial Assets (i) 15,363 - 15,363

Financial LiabilitiesPayables - 2,406 2,406Other Financial Liabilities

- Accomodation bonds - 5,223 5,223 - Other - 328 328

Total Financial Liabilities (ii) - 7,957 7,957

Net holding

gain/(loss)

Total

interest

income /

(expense)

Fee income /

(expense)

Impairment

lossTotal

$'000 $'000 $'000 $'000 $'0002017Financial Assets

Loans and Receivables (i) - 342 - - 342

Total Financial Assets - 342 - - 342

Financial Liabilities

At Amortised Cost (ii) - - - - -

Total Financial Liabilities - - - - -

2016Financial Assets

Loans and Receivables (i) - 213 - - 213

Total Financial Assets - 213 - - 213

Financial LiabilitiesAt Amortised Cost (ii) - - - - -Total Financial Liabilities - - - - -

Note 7.1: Financial Instruments (continued)

(i) The total amount of financial assets disclosed here excludes statutory receivables (i.e. GST input tax credit recoverable)

(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payable)

(b) Net holding gain/(loss) on financial instruments by category

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the

movement in the fair value of the asset, interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the

financial assets, and minus any impairment recognised in the net result;

(ii) For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign

exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost; and

Financial institutions(AA credit

rating)

Financial institutions(AA- credit

rating)

Government agencies

(AAA credit rating)

Financial institutions

(BBB+ credit rating)

Financial institutions(BBB credit

rating)

Government agencies

(BBB credit rating)

Other (unrated)

Total

2017 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents - 4,430 4,774 - - - - 9,204 Receivables - Trade Debtors - - - - - - 816 816 - Other Receivables (i) - - - - - - 705 705

Other Financial Assets - Term Deposit - 1,043 - - 6,631 - - 7,674

Total Financial Assets - 5,473 4,774 - 6,631 - 1,521 18,399

2016Financial AssetsCash and Cash Equivalents 3,299 - - - - - - 3,299 Receivables - Trade Debtors - - - - - - 119 119 - Other Receivables (i) - - - - - 54 1,011 1,065

Other Financial Assets - Term Deposit 1,008 - 4,682 5,223 - - - 10,913

Total Financial Assets 4,307 - 4,682 5,223 - 54 1,130 15,396


(c) Credit risk


30 JUNE 2017

Credit risk arises from the contractual financial assets of the Health Service, which comprise cash and deposits, non-statutory receivables and available for sale contractual financial assets. The Health Service’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the Health Service. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the Health Service’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than the Government, it is the Health Service’s policy to only deal with entities with high credit ratings of a minimum Triple-B rating and to obtain sufficient collateral or credit enhancements, where appropriate.

In addition, the Health Service does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, the Health Service’s policy is to only deal with banks with high credit ratings.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Health Service will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Swan Hill District Health’s maximum exposure to credit risk without taking account of the value of any collateral obtained.


Credit quality of contractual financial assets that are neither past due nor impaired

(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian Government and GST input tax

credit recoverable).


30 JUNE 2017


Not Past Due Past Due But Impaired

Less than 1 Month

1-3 Months3 months - 1

Year

2017 $'000 $'000 $'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents 9,203 9,203 - - - - Receivables 1,521 - 984 373 164 - Other Financial Assets - Term Deposit 7,675 7,675 - - - -

Total Financial Assets 18,399 16,878 984 373 164 -

2016Financial AssetsCash and Cash Equivalents 3,299 3,299 - - - - Receivables 1,184 - 782 132 270 - Other Financial Assets - Term Deposit 10,913 10,913 - - - -

Total Financial Assets 15,396 14,212 782 132 270 -

There are no material financial assets which are individually determined to be impaired. Currently the Health Services does not hold any collateral as security nor credit enhancements relating to its financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are sated at their carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets that are past due but not impaired.

Consol'd Carrying Amount

The Swan Hill District Health Service's exposure to credit risk and effective weighted average interest rate by ageing periods is set out in the following table. For interest rates applicable to each class of asset refer to individual notes to the financial statements.

(i) Ageing analysis of financial assets excludes statutory financial assets (i.e GST input tax credit recoverable)

Contractual financial assets that are either past due or impaired

Ageing analysis of Financial Assets as at 30 June

(c) Credit Risk (continued)



(d) Liquidity risk

Less than

1 Month1-3 Months

3 months -

1 Year1-5 Years

2017 $'000 $'000 $'000 $'000 $'000 $'000Financial LiabilitiesPayables 2,319 2,319 2,319 - - - Other Financial Liabilities (i) - Accommodation Bonds 6,631 6,631 6,631 - - - - Monies Held in Trust 301 301 301 - - -

Total Financial Liabilities 9,251 9,251 9,251 - - -

2016Financial LiabilitiesPayables 2,406 2,406 2,406 - - - Other Financial Liabilities (i) - Accommodation Bonds 5,223 5,223 - - 5,223 - - Monies Held in Trust 328 328 - - 328 -

Total Financial Liabilities 7,957 7,957 2,406 - 5,551 -



30 JUNE 2017

(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e GST payable)

Maturity Dates

Maturity analysis of Financial Liabilities as at 30 June

Carrying

Amount

Nominal

Amount

The Health Service’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The Health Service manages its liquidity risk as follows:

Liquidity risk is the risk that the Health Service would be unable to meet its financial obligations as and when they fall due. The Health Service operates under the Government's fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution.

The following table discloses the contractual maturity analysis for Swan Hill District Health Service's financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.

l On a monthly basis we review the current asset ratio to ensure we have sufficient assets to satisfy our current liabilities.

Interest rate exposure of financial assets and liabilities as at 30 June

Fixed

Interest Rate

Variable

Interest Rate

Non-Interest

Bearing

2017 $'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents 1.72% 9,203 4,773 4,430

Receivables (i)

- Trade Debtors 816 - - 816

- Other Receivables 705 - - 705

- Term Deposit 2.72% 7,675 7,675 - -

Total Financial Assets 18,399 12,448 4,430 1,521

Financial LiabilitiesAt amortised cost

Payables(i) 2,319 - - 2,319

Other Financial Liabilities - Accommodation Bonds 6,631 - - 6,631

- Monies Held in Trust 301 - - 301

Total Financial Liabilities 9,251 - - 9,251

Exposure to interest rate risk might arise primarily through Swan Hill District Health Service's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, the health service mainly undertake financial liabilities with relatively even maturity profiles.

Interest Rate Risk

Interest Rate ExposureCarrying

Amount

Weighted

Average

Effective

Interest Rate

(%)

30 JUNE 2017



Swan Hill District Health has minimal exposure to other price risks.

Other Price Risk

The Health Service manages this risk by mainly undertaking fixed rate or non-interest bearing financial instruments with relatively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has concluded for cash at bank, as a financial asset that can be left at floating rate without necessarily exposing the Health Service to significant bad risk, management monitors movement in interest rates on a daily basis.

The Health Service has minimal exposure to cashflow interest rate risks through its cash and deposits, term deposits that are at a floating rate.

Cashflow interest rate risk is the risk that the future cashflows of a financial instrument will fluctuate because of changes in market interest rates.

Swan Hill District Health is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.

Currency Risk

Swan Hill District Health Service's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below.

(e) Market Risk


30 JUNE 2017



Fixed

Interest Rate

Variable

Interest Rate

Non-Interest

Bearing

2016 $'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents 2.08% 3,299 - 3,299 -

Receivables (i)

- Trade Debtors 119 - - 119

- Other Receivables 1,065 - - 1,065

- Term Deposit 2.61% 10,913 10,913 - -


Financial LiabilitiesAt amortised cost

Payables(i) 2,406 - - 1,947

Other Financial Liabilities - Accommodation Bonds 5,223 - - 5,223

- Monies Held in Trust 328 - - 328

Total Financial Liabilities 7,957 - - 7,498

(i) The carrying amount must exclude types of statutory financial assets and liabilities (i.e. GST input tax credit and GST payable)


(e) Market Risk (continued)

Weighted

Average

Effective

Interest Rate

(%)

Carrying

Amount

Interest Rate Exposure

Profit Equity Profit Equity2017 $'000 $'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents(i) 9,203 (92) (92) 92 92 Receivables (i)

- Trade Debtors 816 - - - - - Other Receivables 705 - - - - - Term Deposit 7,675 (77) (77) 77 77

Financial LiabilitiesAt amortised costPayables 2,319 (23) (23) 23 23 Other Financial Liabilities (ii)

- Accommodation Bonds 6,631 - - - - - Monies Held in Trust 301 - - - -

27,650 (192) (192) 192 192

2016

Financial AssetsCash and Cash Equivalents(i) 3,299 (33) (33) 33 33 Receivables (i)

- Trade Debtors 119 - - - - - Other Receivables 1,065 - - - - - Term Deposit 10,913 (109) (109) 109 109

Financial LiabilitiesAt amortised costPayablesOther Financial Liabilities (ii)

2,406 - - - - - Accommodation Bonds - Monies Held in Trust 5,223 - - - -

328 - - - - (ii) The carrying amount must exclude types of

statutory financial assets and liabilities (i.e.

GST input tax credit and GST payable). (141) (141) 141 141



30 JUNE 2017

Interest Rate Risk

-1% +1%Carrying

Amount

Sensitivity disclosure analysis

(e) Market risk (continued)


The following table discloses the impact on net operating result and equity for each category of financial instrument held by Swan Hill District Health at year end as presented to key management personnel, if changes in the relevant risk occur.

- A parallel shift of +1% and -1% in market interest rates (AUD) from year-end rates of 2%;

- A shift of 100 basis points up and down in market interest rates (AUD) from year-end rates of 2.0%;

Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, the Swan Hill District Health believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)


Comparison between carrying amount and fair value

Carrying

AmountFair value

Carrying

AmountFair value

2017 2017 2016 2016$'000 $'000 $'000 $'000

Financial AssetsCash and Cash Equivalents 9,203 9,203 3,299 3,299

Receivables (i)

- Trade Debtors 816 816 119 119

- Other Receivables 705 705 1,065 1,065

Other Financial Assets- Term Deposit 7,675 7,675 10,913 10,913


Financial LiabilitiesPayables 2,319 2,319 2,406 2,406

Other Financial Liabilities- Accommodation Bonds 6,631 6,631 5,223 5,223

- Monies Held in Trust 301 301 328 328

Total Financial Liabilities 9,251 9,251 7,957 7,957

Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the Swan Hill District Health’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation . For example, statutory receivables

arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract.

Financial instruments



30 JUNE 2017

(i) The carrying amount must exclude types of statutory financial assets and liabilities (i.e. GST input tax credit and GST

payable).

Swan Hill District Health considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.

The following table shows that all fair values of the contractual financial assets and liabilities are the same as the carrying amounts.

(f) Fair value

Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs.

Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and

Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices;

The fair values and net fair values of financial instrument assets and liabilities are determined as



30 JUNE 2017


Financial instrument liabilities measured at amortised cost include all of the Health Service’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

Financial liabilities at amortised cost

Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Loans and receivables

The following refers to financial instruments unless otherwise stated.

Categories of non-derivative financial instruments

Loans and receivables category includes cash and deposits (refer to Note 6.1), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.

Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method.

Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.

(f) Fair value (continued)

2017 2016$'000 $'000

Proceeds from Disposals of Non-Current AssetsMedical Equipment 4 3 Motor Vehicles 96 44 Total Proceeds from Disposal of Non-Current Assets 100 47

Less: Written Down Value of Non-Current Assets SoldMotor Vehicles (35) (32) Plant and Equipment (11) - Medical Equipment (36) - Total Written Down Value of Non-Current Assets Sold (82) (32)

Net gain/(loss) on Disposal of Non-Financial Assets 18 15

Note 7.2: Net gain / (loss) on disposal of non-financial assets

30 JUNE 2017NOTES TO THE FINANCIAL STATEMENTS


It is deemed that, in the event of the loss or destruction 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. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs of disposal. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs of disposal.

If there is an indication that there has been a reversal in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying amount exceeds their possible recoverable amount. Where an asset’s carrying amount exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset.

l assets arising from construction contracts.

l non-current physical assets held for sale; and

Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement.

Disposal of non-financial assets

l investment properties that are measured at fair value;

l inventories;

All other non-financial assets are assessed annually for indications of impairment, except for (delete

items if not applicable to the Health Service) :

Goodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired.

Impairment of non-financial assets

There are no known contingent assets or contingent liabilities at the date of this report.

Note 7.3: Contingent assets and contingent liabilities

30 JUNE 2017



Asset class Examples of types of assetsExpected fair value

level

Likely valuation

approach

Significant inputs

(Level 3 only)

Non-specialised land In areas where there is an

active market:

- vacant land

- land not subject to restrictions

as to use or sale

Level 2 Market approach N/A

Specialised land Land subject to restrictions as

to use and/or sale

Land in areas where there is

not an active market

Level 3 Market approach CSO adjustments

Non-specialised buildings For general/commercial

buildings that are just built


Specialised buildings (i) Specialised buildings with

limited alternative uses and/or

substantial customisation e.g.

prisons, hospitals, and schools

Level 3 Depreciated

replacement cost

approach

Cost per square metre

Useful life

Plant and equipment (i) Specialised items with limited

alternative uses and/or

substantial customisation

Level 3 Depreciated

replacement cost

approach


Useful life Vehicles If there is an active resale

market available;


If there is no active resale

market available

Level 3 Depreciated

replacement cost

approach


Useful life

Note 7.4 Fair value determination

30 JUNE 2017



(i) Newly built / acquired assets could be categorised as Level 2 assets as depreciation would not be a significant unobservable

input (based on the 10% materiality threshold)

8.11 Glossary of terms and style conventions8.10 Alternative presentation of comprehensive operating statement

8.3 Operating segments8.4 Responsible persons disclosures8.5 Executive officer disclosures

8.7 Remuneration of auditors8.8 AASBs issued that are not yet effective8.9 Events occurring after the balance sheet date

8.6 Related Parties

8.2 Reconciliation of net result for the year to net cash inflow/(outflow) from operating activities



30 JUNE 2017

Note 8: Other disclosures

This section includes additional material disclosures required by accounting standards or otherwise, for the understanding of this financial report.

Structure:8.1 Equity

2017 2016$'000 $'000

(a) Surpluses

Property, Plant and Equipment Revaluation Surplus 1

Balance at the beginning of the reporting period 34,231 34,231 Balance at the end of the reporting period* 34,231 34,231

* Represented by: - Land 1,944 1,944 - Buildings 31,832 31,832 - Land Improvements 455 455

34,231 34,231 General Purpose Surplus

Balance at the beginning of the reporting period 2,251 2,073 Transfer to and from General Surplus 117 178

Balance at the end of the reporting period 2,368 2,251 Total Surpluses 36,599 36,482

(b) Contributed Capital

Balance at the beginning of the reporting period 18,072 18,072 Balance at the end of the reporting period 18,072 18,072

(c) Accumulated Surpluses/(Deficits)Balance at the beginning of the reporting period 6,889 (2,070) Net Result for the Year (2,651) 9,138 Transfers to and from General Surplus (117) (178)

Balance at the end of the reporting period 4,121 6,889

Total Equity at end of financial year 58,792 61,443

The General Surplus is the net result of the revenue and expenditure relating to the Health Service's specific purpose accounts that have been included in the comprehensive operating statement.

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-

Owned Public Sector Entities and FRD 119A Contributions by Owners , appropriations for additions to the

net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions to or distributions by owners that have been designated as contributed capital are also treated as contributed capital.

The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets.

Contributed Capital

Property, Plant and Equipment Revaluation Surplus

General Purpose Surplus



Note 8.1: Equity

(1) The property revaluation surplus arises on the revaluation of property.

2017 2016$'000 $'000

Net result for the period (2,651) 9,138

Non-cash movements:Depreciation 4,208 4,234

Provision for doubtful debts (37) (2)

Jointly Controlled Operations (note 4.2) (11) (25)

Movements included in investing and financing activitiesNet (gain)/loss from disposal of non-financial physical assets (18) (15)

Movements in assets and liabilities: (Increase)/Decrease in Receivables 190 (414) (Increase)/Decrease in Prepayments (134) (930) Increase/(Decrease) in Payables 2,247 530 Increase/(Decrease) in Provisions 1,011 341 Change in inventories 4 (17)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 4,809 12,840



Note 8.2: Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating

Activities

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

RE

VE

NU

EExternal S

egment Revenue

37,829 33,805 7,962 7,280 3,411 2,339 2,348 2,264 - -

51,550

45,688

Intersegment Revenue

- - - - - - - - - -

-

-

Unallocated Revenues

- - - - - - - - 6,269 18,003

6,269

18,003

To

tal R

even

ue

3

7,8

29

3

3,8

05

7

,962

7

,280

3

,411

2

,339

2

,348

2

,264

6,2

69

18,0

03

57,8

19

63,6

91

EX

PE

NS

ES

External S

egment Expenses

37,341 35,534 9,950 7,669 4,830 3,286 1,857 1,756 - -

53,978

48,245

Intersegment Expenses

- - - - - - - - - -

-

-

Unallocated Expense

- - - - - - - - 6,834 6,586

6,834

6,586

To

tal E

xp

en

ses

3

7,3

41

3

5,5

34

9

,950

7

,669

4

,830

3

,286

1

,857

1

,756

6,8

34

6,5

86

60,8

12

54,8

31

Net

Resu

lt f

rom

ord

inary

acti

vit

ies

488

(

1,7

29)

(

1,9

88)

(3

89)

(

1,4

19)

(9

47)

491

508

(5

65)

1

1,4

17

(

2,9

93)

8

,860

Interest Income

106 101 155 116 2 - - - 78 61

341

278

Net

Resu

lt f

or

Year

594

(

1,6

28)

(

1,8

33)

(2

73)

(

1,4

17)

(9

47)

491

508

(4

87)

1

1,4

78

(

2,6

52)

9

,138

OT

HE

R IN

FO

RM

AT

ION

Segment Assets

34,117 41,328 26,359 18,479 615 526 2,079 2,289 - -

63,170

62,622

Unallocated Assets

- - - - - - - - 18,174 16,732

18,174

16,732

To

tal A

ssets

3

4,1

17

4

1,3

28

2

6,3

59

1

8,4

79

615

526

2

,079

2

,289

18,1

74

16,7

32

81,3

44

79,3

55

Segment Liabilities

10,567 7,579 8,298 6,854 876 730 244 206 - -

19,985

15,369

Unallocated Liabilities

- - - - - - - - 2,567 2,543

2,567

2,543

To

tal L

iab

ilit

ies

1

0,5

67

7

,579

8

,298

6

,854

876

730

244

206

2,5

67

2,5

43

22,5

52

17,9

12

Acquisition of Property, Plant and

Equipment

1,990 2,849 467 13,348 40 492 20 368 233 62

2,750

17,119

Depreciation Expense

663 3,180 499 358 115 47 240 240 2,680 297

4,197

4,122

30

JU

NE

20

17

NO

TE

S T

O T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

S

SW

AN

HIL

L D

IST

RIC

T H

EA

LT

H

To

tal

Oth

er

Acu

teR

AC

SP

rim

ary

Care

Rad

iolo

gy

No

te 8

.3:

Op

era

tin

g s

eg

men

ts

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

Business Segments Services

Residential Aged Care Services (RACS) Provider of residential aged care bedsRadiology Provider of Diagnostic Radiology ServicesAcute Care Services Provider of Acute Inpatient / Outpatient ServicesPrimary Care services Provider of Health Promotion and Allied Health Services



30 JUNE 2017

Note 8.3: Operating segments (continued)

Swan Hill District Health operates predominantly in Swan Hill, Victoria. More than 90% of revenue, net surplus from ordinary activities and segment assets relate to operations in Swan Hill, Victoria.

Pricing for inter-segment transfer is based on 85% of Medicare schedule fee for Radiology fees and employee hourly rates for other programs.

Geographical Segment

01/07/2016 - 30/06/2017

01/07/2016 - 30/06/2017

Ms. Jodi Walters

Mrs. Archana Patney

A/Prof Deb Colville

2017 2016Income Band No. No.$300,000 to $309,999 - 1$310,000 to $319,999 1 -

Total Numbers 1 1

$317,405 $307,260

Ms. Rosanne Kava

Mr. Peter Koetsveld

Mr. E.C. Rayment - Chief Executive Officer

01/07/2016 – 30/06/2017

01/07/2016 – 30/06/2017

01/07/2016 – 30/06/2017

Total Remuneration

Dr. John Christie

Mr. Don Logan

No Board Member of Swan Hill District Health received a remuneration payment in their capacity as a Board Member.

Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Parliamentary Services. For information regarding related party transactions of ministers, the register of members' interest is publicly available from: www.parliment.vic.gov.au/publications/register of interests.

01/07/2016 – 30/06/2017

Remuneration of Responsible Persons:

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

Total remuneration received or due and receivable by Responsible Person

from the Reporting Entity amounted to:

01/07/2016 – 30/06/2017

01/07/2016 - 30/06/2017

01/07/2016 – 30/06/2017

Mrs. Janine Kent

Mr. Geoff Dunstan

01/07/2016 – 30/06/2017

Responsible Ministers:

Accountable Officers:



30 JUNE 2017

Note 8.4: Responsible person disclosures

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period.

Period

Martin Foley, MLA, Minister for Mental Health and Minister for Housing, Disability and Ageing

The Honourable Jill Hennessy, Minister for Health, Minister for Ambulance Services

Mr. Ian Ray

Governing Boards:01/07/2016 – 30/06/2017

01/07/2016 – 30/06/2017

01/07/2016 – 30/06/2017

Termination benefits include termination of employement payments, such as severance packages.

2017Remuneration $'000

Short-term benefits 520 Post-employment benefits 74 Other long-term benefits 405 Termination benefits -Share-based payments -

Total Remuneration 999 Total number of executives 3 Total annualised employee equivalent (AEE) 3 Notes

(ii) Annualised employee equivalent is based on the time fraction worked over the reporting period.

(i) No comparatives have been reported because remuneration in the prior year was determined in line with the basis and definition under

FRD 21B. Remuneration previously excluded non-monetary benefits and comprised any money, consideration or benefit received or

receivable, excluding reimbursement of out-of-pocket expenses, including any amount received or receivable from a related party

transaction. Refer to the prior year's financial statements for executive remuneration for the 2015-16 reporting period.



30 JUNE 2017

The number of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the table below. Total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

Note 8.5: Executive officer disclosures

Short-term employee benefits include amounts such as wages, salaries, annual leave or sick leave that are

usually paid or payable on a regular basis, as well as non-monetary benefits such as allowances and free or subsidised goods or services.

Remuneration comprises employee benefits in all forms of consideration paid, payable or provided in exchange for services rendered, and is disclosed in the following categories.

Post employment benefits include pensions and other retirement benefits paid or payable on a discrete basis

when employment has ceased.

Other long-term benefits include long service leave, other long-service benefit or deferred compensation.

2017Compensation $'000Short-term benefits 852 Post-employment benefits 74 Other long term benefits 21 Share-based payments -

Total compensation 947

· all key management personnel and their close family members;



30 JUNE 2017

Note 8.6: Related parties

The Health Service is a wholly owned and controlled entity of the State of Victoria. Related parties of the Health Service include:

Director of the Board namely, Ms Janine Kent a partner in Kent's Amcal Pharmacy provided pharmaceutical goods on normal terms and conditions to Swan Hill District Health valuing $1,696 (2016: $1,053).

Transactions with key management personnel and other related parties

Given the breadth and depth of State government activities, related parties transact with the Victorian public sector in a manner consistent with other members of the public e.g. stamp duty and other government fees and charges. Further employment of processes within the Victorian public sector occur on terms and conditions consistent with the Public Administration Act 2004 and Codes of Conduct and Standards issued by the Victorian Public Sector Commission. Procurement processes occur on terms and conditions consistent with the Victorian Government Procurement Board requirements. Outside of normal citizen type transactions with the department, no provision has been required, nor any expense recognised, for impairment of receivables from related parties.

The Hospital received funding from the Department of Health and Human Services of $38,759,447 (2016: $35,169,850).

· all cabinet ministers and their close family members; and

· all Health Services and public sector entities that are controlled and consolidated into the whole of state consolidated financial statements.

All related party transactions have been entered into on an arm’s length basis.

Key management personnel (KMP) of the Health Service include the Portfolio Ministers and Cabinet Ministers and KMP as determined by the Health Service, which is determined to be the Board and CEO as listed in note 8.4. The compensation detailed below excludes the salaries and benefits the Portfolio Ministers receive. The Minister’s remuneration and allowances is set by the Parliamentary Salaries and Superannuation Act 1968, and is reported within the Department of Parliamentary Services’ Financial Report.

Note 8.7. Remuneration of auditors

2017 2016Victorian Auditor-General's Office $'000 $'000

Audit of financial statements 28 28

28 28



30 JUNE 2017

Standard / Interpretation Summary

Applicable for

annual reporting

periods

beginning on

Impact on Entities Annual

Statements

AASB 9 Financial

Instruments

The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

1 January 2018 The assessment has identified that the amendments are likely to result in earlier recognition of impairment losses and at more regular intervals. While there will be no significant impact arising from AASB 9, there will be a change to the way financial instruments are disclosed.

AASB 15 Revenue from

Contracts with Customers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer.

1 January 2018 The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.

AASB 2015-8 Amendments

to Australian Accounting Standards – Effective Date of AASB 15

This Standard defers the mandatory effective date of AASB 15 from 1 January 2017 to 1 January 2018.

1 January 2018 This amending standard will defer the application period of AASB 15 for for-profit entities to the 2018-19 reporting period in accordance with the transition requirements.

AASB 2014-1 Amendments to Australian

Accounting Standards

[Part E Financial

Instruments ]

Amends various AASs to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.

1 January 2018 This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.


Note 8.8: AASBs issued that are not yet effective

30 JUNE 2017


Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2017 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable.

As at 30 June 2017, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Swan Hill District Health has not and does not intend to adopted these standards early.


30 JUNE 2017



Applicable for

annual reporting

periods

beginning on


Statements

AASB 2010-7

Amendments to Australian

Accounting Standards arising from AASB 9 (December 2010)

The requirements for classifying and measuring financial liabilities were added to AASB 9. The existing requirements for the classification of financial liabilities and the ability to use the fair value option have been retained. However, where the fair value option is used for financial liabilities the change in fair value is accounted for as follows:• The change in fair value attributable to changes in credit risk is presented in other comprehensive income (OCI); and • Other fair value changes are presented in profit and loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss.

1 January 2018 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. Changes in own credit risk in respect of liabilities designated at fair value through profit and loss will now be presented within other comprehensive income (OCI). Hedge accounting will be more closely aligned with common risk management practices making it easier to have an effective hedge. For entities with significant lending activities, an overhaul of related systems and processes may be needed.

AASB 2016-7


Accounting Standards –

Deferral of AASB 15 for Not-for-Profit Entities

This Standard defers the mandatory effective date of AASB 15 for not-for-profit entities from 1 January 2018 to 1 January 2019.

1 January 2019 This amending standard will defer the application period of AASB 15 for not-for-profit entities to the 2019-20 reporting period.

AASB 1058 Income of Not-for-Profit Entities

This standard replaces AASB 1004 Contributions and establishes revenue recognition principles for transactions where the consideration to acquire an asset is significantly less than fair value to enable to not-for-profit entity to further its objectives.

1 January 2019 The assessment has indicated that revenue from capital grants that are provided under an enforceable agreement that have sufficiently specific obligations, will now be deferred and recognised as performance obligations are satisfied. As a result, the timing recognition of revenue will change.

Note 8.8: AASBs issued that are not yet effective (continued)


30 JUNE 2017



Applicable for

annual reporting

periods

beginning on


Statements


to Australian Accounting Standards arising from AASB 9

Amends various AASs to incorporate the consequential amendments arising from the issuance of AASB 9.

1 January 2018 The assessment has indicated that there will be no significant impact for the public sector.

AASB 2016-8



Australian Implementation

Guidance for Not-for-Profit

Entities

This Standard amends AASB 9 and AASB 15 to include requirements to assist not-for-profit entities in applying the respective standards to particular transactions and events. The amendments: • require non-contractual receivables arising from statutory requirements (i.e. taxes, rates and fines) to be initially measured and recognised in accordance with AASB 9 as if those receivables are financial instruments; and • clarifies circumstances when a contract with a customer is within the scope of AASB 15.

1 January 2019 The assessment has indicated that there will be no significant impact for the public sector, other than the impacts identified for AASB 9 and AASB 15 above.


to Australian Accounting Standards arising from AASB 15

Amends the measurement of trade receivables and the recognition of dividends.Trade receivables, that do not have a significant financing component, are to be measured at their transaction price, at initial recognition. Dividends are recognised in the profit and loss only when:• the entity’s right to receive payment of the dividend is established; • it is probable that the economic benefits associated with the dividend will flow to the entity; and • the amount can be measured reliably.

1 Jan 2017, except amendments to AASB 9 (Dec 2009) and AASB 9 (Dec 2010) apply from 1 Jan 2018

The assessment has indicated that there will be no significant impact for the public sector.



30 JUNE 2017



Applicable for

annual reporting

periods

beginning on


Statements

AASB 2016-4



Recoverable Amount of

Non-Cash-Generating

Specialised Assets of Not-

for-Profit Entities

The standard amends AASB 136 Impairment of Assets to remove references to using depreciated replacement cost (DRC) as a measure of value in use for not-for-profit entities.

1 January 2017 The assessment has indicated that there is minimal impact. Given the specialised nature and restrictions of public sector assets, the existing use is presumed to be the highest and best use (HBU), hence current replacement cost under AASB 13 Fair Value Measurement is the same as the depreciated replacement cost concept under AASB 136.

AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are current not recognised) on balance sheet.

1 January 2019 The assessment has indicated that as most operating leases will come on balance sheet, recognition of the right-of-use assets and lease liabilities will cause net debt to increase. Rather than expensing the lease payments, depreciation of right-of-use assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus.No change for lessors.

AASB 2016-3



Clarifications to AASB 15

This Standard amends AASB 15 to

clarify the requirements on

identifying performance obligations,

principal versus agent

considerations and the timing of

recognising revenue from granting a

licence. The amendments require:

• A promise to transfer to a

customer a good or service that is

‘distinct’ to be recognised as a

separate performance obligation;

• For items purchased online, the

entity is a principal if it obtains

control of the good or service prior

to transferring to the customer; and

• For licences identified as being

distinct from other goods or

services in a contract, entities need

to determine whether the licence

transfers to the customer over time

(right to use) or at a point in time

(right to access).

1 January 2018 The assessment has indicated that there will be no significant impact for the public sector, other than the impact identified for AASB 15 above.



30 JUNE 2017



AASB 2017-2 Amendments to Australian Accounting Standards – Further Annual Improvements 2014-16

Cycle

AASB 2017-1 Amendments to Australian Accounting Standards – Transfers of Investment Property, Annual

Improvements 2014-16 Cycle and Other Amendments

AASB 2016-6 Amendments to Australian Accounting Standards – Applying AASB 9 Financial Instruments

with AASB 4 Insurance Contract

AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurements of Share-

based Payment Transactions

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB

107

AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for

Unrealised Losses [AASB 112]

In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2016-17 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.

There are no known events occurring after the date of this report that will effect the Financial Statements.

Note 8.9: Events occurring after the balance sheet date

30 JUNE 2017



Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Health Service and other parties, the transactions are only recognised when the agreement is irrevocable at or before the end of the reporting period.

Adjustments are made to amounts recognised in the financial statements for events which occur between the end of the reporting period and the date when the financial statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period that are considered to be of material interest

8.9 Events after rep date



30 JUNE 2017

Note 8.10: Alternate presentation of comprehensive operating statement

Note 2017 2016$'000 $'000

Grants Operating 2.1 40,122 37,453 Interest and Dividends 2.1 79 312 Sales of Goods and ServicesOther income Other capital income 2.1 17,959 26,204 Specific income 2.3 - - Reversal of impairment of financial assets 2.1 - -

Revenue from Transactions 58,160 63,969

Employee Expenses 3.1 (38,386) (34,438)

Operating Expenses Supplies and consumables 3.1 (5,565) (5,254) Non salary labour costs 3.1 (4,102) (3,079) Finance Costs - Self Funded Activities Other (8,451) (7,722) Non-Operating Expenses Specific Expenses 3.3 - - Available-for-sale revaluation surplus gain/(loss) recognised 8.1 - - Impairment of non-financial assets 3.1 - - Impairment of financial assets 3.1 - - Finance Costs - Other 3.4 - -

Assets provided free of charge

Expenditure for Capital Purpose 3.1 (110) (104) Share of net result of associates and joint ventures accounted for using the Equity Method 4.2 - - Depreciation and Amortisation 4.5 (4,197) (4,234)

Expenses from Transactions (60,811) (54,831)

Net Result from Transactions (2,651) 9,138

Net result from continuing operations (2,651) 9,138 Net result from discontinued operations - - NET RESULT FOR THE YEAR ^ (2,651) 9,138

Other comprehensive incomeItems that will not be reclassified to net resultChanges in physical asset revaluation surplus 8.1 - -

Share of net movement in revaluation surplus of associates and joint ventures 8.1 - -

Items that may be reclassifed subsequently to net resultChanges to financial assets available-for-sale revaluation surplus 8.1 - -

Total other comprehensive income - - Comprehensive result (2,651) 9,138

(b) an equity instrument of another entity;(c) a contractual or statutory right:

• to receive cash or another financial asset from another entity; or

• to exchange financial assets or financial liabilities with another entity under conditions that are potentially favorable to the entity; or

The net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other comprehensive income.

Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources.

Amounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return.

Depreciation is an expense that arises from the consumption through wear or time of a produced physical or intangible asset. This expense reduces the ‘net result for the year’.

The effective interest method is used to calculate the amortised cost of a financial asset or liability and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument, or, where appropriate, a shorter period.

Associates

Comprehensive result

Commitments

Current grants

Depreciation

Amortisation is the expense which results from the consumption, extraction or use over time of a non-produced physical or intangible asset.

Amortisation

(b) the effects of changes in actuarial assumptions.

(a) experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred); and

Actuarial gains or losses are changes in the present value of the superannuation defined benefit liability resulting from

Actuarial gains or losses on superannuation defined benefit plans



Note 8.11: Glossary of terms and style conventions

Effective interest method

Employee benefits expenses

Ex gratia expenses

Financial asset

Employee benefits expenses include all costs related to employment including wages and salaries, fringe benefits tax, leave entitlements, redundancy payments, defined benefits superannuation plans, and defined contribution superannuation plans.

Ex-gratia expenses mean the voluntary payment of money or other non-monetary benefit (e.g. a write off) that is not made either to acquire goods, services or other benefits for the entity or to meet a legal liability, or to settle or resolve a possible legal liability, or claim against the entity.

A financial asset is any asset that is:(a) cash;

Associates are all entities over which an entity has significant influence but not control, generally accompanying a shareholding and voting rights of between 20 per cent and 50 per cent.




(c) A statement of changes in equity for the period;

(d) Cash flow statement for the period;

(e) Notes, comprising a summary of significant accounting policies and other explanatory information;

(f) Comparative information in respect of the preceding period as specified in paragraph 38 of AASB 101 Presentation of Financial Statements; and

(g) A statement of financial position at the beginning of the preceding period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial

Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be operating or capital in nature.

(b) A contract that will or may be settled in the entity’s own equity instruments and is:

(i) a non-derivative for which the entity is or may be obliged to deliver a variable number of the entity’s own equity instruments; or

(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

A complete set of financial statements comprises:

(a) Balance sheet as at the end of the period;

(b) Comprehensive operating statement for the period;

(a) A contractual obligation:(i) to deliver cash or another financial asset to another entity; or

(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable to the entity; or

(d) a contract that will or may be settled in the entity’s own equity instruments and is:

• a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or

Note 8.12: Glossary of terms and style conventions (continued)

Financial statements

Grants and other transfers

• a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets or liabilities that are not contractual (such as statutory receivables or payables that arise as a result of statutory requirements imposed by governments) are not financial instruments.

A financial liability is any liability that is:

Financial instrument

Financial liability




Liabilities refers to interest-bearing liabilities mainly raised from public liabilities raised through the Treasury Corporation of Victoria, finance leases and other interest-bearing arrangements. Liabilities also include non-interest-bearing advances from government that are acquired for policy purposes.

Refer to non-produced asset in this glossary.

Refer to produced assets in this glossary.

Costs incurred in connection with the borrowing of funds includes interest on bank overdrafts and short-term and long-term liabilities, amortisation of discounts or premiums relating to liabilities, interest component of finance leases repayments, and the increase in financial liabilities and non-employee provisions due to the unwinding of discounts to reflect the passage of time.

Interest income includes unwinding over time of discounts on financial assets and interest received on bank term deposits and other investments.

While grants to governments may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. Grants can be paid as general purpose grants which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.


Investment properties

Interest income

Interest expense

Intangible non-produced assets

The general government sector comprises all government departments, offices and other bodies engaged in providing services free of charge or at prices significantly below their cost of production. General government services include those which are mainly non-market in nature, those which are largely for collective consumption by the community and those which involve the transfer or redistribution of income. These services are financed mainly through taxes, or other compulsory levies and user charges.

Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the State of Victoria.

Liabilities

Joint Arrangements

A joint arrangement is either a joint operation or a joint venture.

(b) The contractual arrangement gives two or more of those parties joint control of the arrangement

(a) The parties are bound by a contractual arrangement.

A joint arrangement is an arrangement of which two or more parties have joint control. A joint arrangement has the following characteristics:

General government sector

Intangible produced assets




Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. It includes only those increases or decreases in non-financial assets resulting from transactions and therefore excludes write-offs, impairment write-downs and revaluations.

Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other comprehensive income’.

Net result from transactions/net operating balance Net result from transactions or net operating balance is a key fiscal aggregate and is income from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations. It excludes gains and losses resulting from changes in price levels and other changes in the volume of assets.

Assets less liabilities, which is an economic measure of wealth.

Non-financial assets are all assets that are not ‘financial assets’. It includes inventories, land, buildings, infrastructure, road networks, land under roads, plant and equipment, investment properties, cultural and heritage assets, intangible and biological assets.


Public financial corporations (PFCs) are bodies primarily engaged in the provision of financial intermediation services or auxiliary financial services. They are able to incur financial liabilities on their own account (e.g. taking deposits, issuing securities or providing insurance services). Estimates are not published for the public financial corporation sector.

The public non-financial corporation (PNFC) sector comprises bodies mainly engaged in the production of goods and services (of a non-financial nature) for sale in the market place at prices that aim to recover most of the costs involved (e.g. water and port authorities). In general, PNFCs are legally distinguishable from the governments which own them.

Non-financial assets

Net worth

Net result

Net acquisition of non-financial assets (from transactions)

Public non-financial corporation sector

Public financial corporation sector

Produced assets

Payables

Non-profit institution

Non-produced assetsNon-produced assets are assets needed for production that have not themselves been produced. They include land, subsoil assets, and certain intangible assets. Non-produced intangibles are intangible assets needed for production that have not themselves been produced. They include constructs of society such as patents.

A legal or social entity that is created for the purpose of producing or distributing goods and services but is not permitted to be a source of income, profit or other financial gain for the units that establish, control or finance it.

Includes short and long term trade debt and accounts payable, grants, taxes and interest payable.

Produced assets include buildings, plant and equipment, inventories, cultivated assets and certain intangible assets. Intangible produced assets may include computer software, motion picture films, and research and development costs (which does not include the startup costs associated with capital projects).



Note 8.11: Glossary of terms and style conventionsNote 8.11: Glossary of terms and style conventions (continued)

• other taxes, including landfill levies, license and concession fees.

Revised Transactions are those economic flows that are considered to arise as a result of policy decisions, usually an interaction between two entities by mutual agreement. They also include flows in an entity such as depreciation where the owner is simultaneously acting as the owner of the depreciating asset and as the consumer of the service provided by the asset.

Taxation is regarded as mutually agreed interactions between the government and taxpayers.

Figures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage variations in all tables are based on the underlying unrounded amounts.

201x-1x year period

201x year period

(xxx.x) negative numbers

zero, or rounded to zeroThe notation used in the tables is as follows:

• payroll tax; land tax; duties levied principally on conveyances and land transfers;

• gambling taxes levied mainly on private lotteries, electronic gaming machines, casino operations and racing;

• insurance duty relating to compulsory third party, life and non-life policies;

• insurance company contributions to fire brigades;

• motor vehicle taxes, including registration fees and duty on registrations and transfers;

• levies (including the environmental levy) on statutory corporations in other sectors of government; and

Includes amounts owing from government through appropriation receivable, short and long term trade credit and accounts receivable, accrued investment income, grants, taxes and interest receivable.

Refers to income from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rent income from the use of produced assets such as buildings and entertainment, but excludes rent income from the use of.

Supplies and services generally represent cost of goods sold and the day-to-day running costs, including maintenance costs, incurred in the normal operations of the Department.

Taxation income represents income received from the State’s taxpayers and includes:

Style conventions

Transactions

Taxation income

Supplies and services

Sales of goods and services

Receivables

SWAN HILL DISTRICT HEALTH APPENDIX 4

Details of Information and Communication Technology (ICT) Expenditure

The total ICT expenditure incurred during 2016-17 is $1.011 million (excluding GST) with the details shown below.

Business As Usual (BAU) ICT expenditure

(Total)(excluding GST)

($ million)

Non-Business As Usual (non-BAU) ICT expenditure(Total=Operational expenditure and Capital Expenditure)(excluding GST)($ million)

Operational expenditure(excluding GST)

($ million)

Capital expenditure(excluding GST)

($ million)

$0.797 $0.214 $0.214

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