Embed Size (px)
Citation preview
Cape York Hospital and Health Service
Page 2
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Table of contents Letter of compliance....................................................................... 1
Abbreviations ................................................................................. 3
Welcome ........................................................................................ 4
About Cape York Hospital and Health Service .................................5
Strategic direction...........................................................................16
Corporate governance ...................................................................22
Our people .....................................................................................35
Financial summary .........................................................................40
Compliance checklists....................................................................42
Directory.........................................................................................45
Feedback survey............................................................................47
Figures
Figure 1: The catchment area serviced by Cape York HHS ......................................... 7
Figure 2: Cape York HHS cascade of relevant performance management
policy and documents ................................................................................................. 18
Figure 3: Cape York HHS organisational structure ..................................................... 22
Tables
Table 1: Cape York HHS Executive Management Team............................................ 23 Table 2: Cape York HHS Management Committees .................................................. 25
Table 3: Cape York HH Board Members .................................................................... 26
Table 4: Cape York HHS Board Committees.............................................................. 28
Table 5: Cape York HHS Board Audit and Risk Committee Disclosure...................... 29
Table 6: Compliance Checklist ................................................................................... 42
Attachment One
Financial Statements .................................................................................................. 49
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 3
Abbreviations
Act Hospital and Health Boards Act 2011
ARRs Annual report requirements for Queensland Government agencies
ATODS Alcohol, Tobacco and Other Drugs Service
Board Cape York Hospital and Health Board
COAG Council of Australian Governments
Department Department of Health (formerly Queensland Health)
FAA Financial Accountability Act 2009
FPMS Financial and Performance Management Standard 2009
HH Hospital and Health
HHS Hospital and Health Service
HSCE Health Service Chief Executive
KPI Key Performance Indicator
MPHS Multi Purpose Health Service
PPH Potentially Preventable Hospitalisations
Service Cape York Hospital and Health Service
SLA Statistical Local Area
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 5
About Cape York Hospital and Health Service Introductory information
The main function of Cape York HHS is to deliver health services in the local government areas of Aurukun, Cook, Hope Vale, Kowanyama, Lockhart River, Mapoon, Napranum, Pormpuraaw and Wujal Wujal Shire Councils and the town of Weipa. Cape York HHS’s vision is to become a leading healthcare organisation - capable of improving health outcomes for all people of Cape York, Queensland. Our purpose is to provide high quality remote area health care. Our objectives, which are in line with the Queensland Government objectives for the community are to: 1. Improve equity in access and health outcomes for Aboriginal and Torres
Strait Islander people: Services and programs will be responsive to the needs and wellbeing of
Aboriginal and Torres Strait Islander people Cape York people and communities have the right to equitable access to services
and health outcomes similar to other Australians Services will focus on the prevention of disease and maintenance of good health.
2. Provide care that is person focused and family centred, appropriate, safe and effective: Services will be focused on the individual, family and/or community Care and service delivery models will support holistic solutions and whole of
person care Services should achieve positive results and meet community needs.
3. Partner with other organisations to deliver effective, high quality services and improved health outcomes for Cape York residents: Partnerships will be effective and deliver results for communities Services provided will be clinically effective Integration of services promotes improved patient care Integrated service planning and delivery will improve service quality, reduce
service duplication and promote good use of resources.
4. Implement sustainable, responsible and innovative workforce solutions and use of resources: A high standard of professional conduct Financial responsibility and performance accountability Evaluation and improvement of practice Transparency and integrity Organisational innovation.
Page 6
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Role and main functions Cape York HHS was established in July 2012 as a statutory body, enacted under the Hospital and Health Boards Act 2011 (the Act) which sets out the functions and powers of the HHS and the relationship with the Department of Health. Cape York HHS is overseen by a Hospital and Health Board (Board) reporting to the Minister for Health and accountable to the Cape York community. The Board is responsible for providing strategic direction and leadership, and ensuring compliance with standards and legal requirements. Obligations are also imposed on the Board by the broader policy and administrative framework they operate within. The Cape York Health Service Chief Executive (HSCE) is responsible for the operations of the HHS. The Executive Management Team, led by the HSCE is accountable to the Board for making and implementing decisions about the HHS business within the strategic framework set by the Board. The HSCE reports regularly to the Board and develops advice and recommendations on key strategic issues and risks for their consideration. Cape York HHS is:
the principal provider of public sector health services in Cape York
accountable through the Hospital and Health Board Chair to the Minister for Health for local performance, delivering local priorities and meeting national standards
subject to the Financial Accountability Act 2009 and the Statutory Bodies Financial Arrangements Act 1982
a unit of public administration under the Crime and Misconduct Act 2001
a body corporate representing the State and with the privileges and immunities of the State
a legal entity that can sue and be sued in its corporate name. Details of the HHS obligations are detailed within the:
Service Agreement with the Department of Health
Common Industrial Framework
Directives issued by the Minister for Health
Health Service Directives issued by the Director-General
Applicable whole of government policies.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 7
Figure 1: The catchment area serviced by Cape York HHS
The Cape York HHS delivers a range of acute, non-acute, primary health care and public health services through the operations of two hospitals at Cooktown and Weipa, and 10 primary health care centres at:
Additionally, Cape York HHS maintains a regional hub office in Cairns where business, finance, human resources, patient safety, quality, performance and planning services are based. Some Cape York HHS clinical outreach services are also based in the Cairns hub office.
Napranum Pormpuraaw
Mapoon Kowanyama
Coen Hope Vale
Aurukun Laura
Lockhart River Wujal Wujal
Page 8
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Operating environment
Statutory obligations and progress
Cape York HHS met its statutory obligations under sections 40 to 43 of the Act to develop and publish the following strategies:
Consumer and Community Engagement Strategy – to promote consultation with health consumers and members of the community about the provision of health services by the HHS
Clinician Engagement Strategy – to promote consultation with health professionals
Protocol with the Far North Queensland Medicare Local to promote cooperation between the organisations in the planning and delivery of health services.
Nature and range of our operations Cape York HHS is a major provider of staff and infrastructure for health service delivery throughout Cape York, and shares funding responsibility with the Department of Health, and with the Commonwealth Government which directly funds a range of initiatives. A Service Agreement between Cape York HHS and the Department identifies the services to be provided, the funding arrangements for those services, and the defined performance indicators and targets to ensure the outputs and outcomes are achieved. The major townships within the HHS are Weipa and Cooktown. Weipa is the main service centre for three Aboriginal and Torres Strait communities; Napranum, Mapoon and Aurukun. Cooktown is a service centre for the small communities of Rossville, Laura, Lakeland, and the larger Indigenous communities of Hopevale and Wujal Wujal. The Cape York HHS provides comprehensive health services through a network of hospitals and primary health centres. Facilities include; two multi-purpose hospitals (Weipa Integrated Health Service and Cooktown Multi-purpose Health Service), ten primary health care clinics at Aurukun, Coen, Hopevale, Laura, Lockhart River, Kowanyama, Mapoon, Napranum, Pormpuraaw, Wujal Wujal, and a hub office located in Cairns. Services include emergency, primary health and acute care, medical imaging, dental, maternity, aged care, allied health, palliative and respite services, and visiting specialist services.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 9
The HHS has established significant, collaborative partnerships with the following key stakeholders:
Apunipima Cape York Health Council
Royal Flying Doctor Service (Queensland Section)
Cairns and Hinterland HHS. As part of the standing service agreements, Cape York HHS and its key partners agree to promote cooperation between providers in planning and delivery of health services to Cape York communities to collaborate wherever possible and practical on matters of common concern and interest – including joint clinician engagement. To further improve collaborative service delivery, the HHS and Far North Queensland Medicare Local have jointly developed a Medicare Local Protocol that identifies that both the HHS and the Far North Queensland Medicare Local will collaborate on key clinical and service issues including:
health service integration
the protection and promotion of public health
service planning and design
local clinical governance arrangements
monitoring and evaluation of service delivery. Additionally, the HHS works in collaboration with other relevant agencies and service providers such as Mookai Rosie Bi-Bayan, a community controlled indigenous family health centre, and visiting specialists including paediatricians, ophthalmologists, renal specialists and surgeons who use the HHS facilities on a sessional basis and typically travel from Cairns.
Page 10
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Strategic Risks Cape York HHS accepts a variety of strategic risks and opportunities. Risks
Limited internal capacity to manage policy, funding and reporting requirements.
Workforce inflexibility, skills gaps, and difficulties with recruitment and retention to remote locations.
Funding levels including missed revenue and the expected introduction of activity based funding with implications for small population rural and remote environments.
Infrastructure inadequate to meet service needs.
Inadequate health technology and data infrastructure with associated impacts on planning processes, staffing and service delivery.
Opportunities
The characteristics of the HHS present a unique opportunity to expand both non-government and corporate sponsorship arrangements.
To mature existing community relationships and progress community engagement to improve health services.
To implement a model of care that is person-centred and family-centred to provide holistic and culturally-appropriate health care.
To pursue stronger partnerships and actively partake in a whole-of-systems approach.
To build capacity and capability of the workforce while developing a functional innovative workforce model.
An independent statutory authority is enabled to:
grow service capability and capacity
develop and implement commercial model principles and productive business units
improve sources of revenue and brand
develop research links with academic bodies to improve services to, and health status of, the community
develop systems and processes that deliver reliable data, and drive performance.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 11
Challenges
Implement evidenced-based service delivery models that will address the growing demand for health services.
Introduce new health technologies, performance management and accountability reporting systems to improve the quality and effectiveness of health services.
Build capacity and systems to improve business capability.
Expand work with consumers, communities and governments to better meet their needs regarding the scope and performance of health services.
Environmental factors impacting on service delivery
Cape York HHS delivers health services to a widely distributed population across 127,819 square kilometres. Access to services is difficult and expensive, particularly as road access is largely impossible during the three-month wet season. There are significant distances between communities and health services sites, and to the major referral hospital in Cairns. Many of the Statistical Local Areas (SLAs) that the HHS services are very remote indicating very little accessibility for goods, services and social interaction. The population of Cape York was estimated to be 14,4091 in 2011, and projected to increase to 16,933 (21.2%) by 2026. Fifty one per cent (6847) of Cape York’s population identify as Aboriginal or Torres Strait Islander (Australian Census 2011), with most Indigenous residents living within discrete Aboriginal communities throughout Cape York. The majority of residents reside in the most disadvantaged quintile highlighting the relative social disadvantage of the region.
1Australian Bureau of Statistics, Population by Age and Sex, Regions of Australia, 2011, cat. no. 3235.0
Page 12
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Cape York HHS initiatives 2012-13
During the 2012-2013 financial year, Cape York HHS completed or initiated the following significant initiatives: In alignment with Government directions to improve front line services, Cape York
HHS initiated an Organisational Review in November 2012. The recommendations were approved by the Hospital and Health Board on the 14 February 2013, and have informed broader organisational changes including a revision of Executive roles and positions, reduction in service duplications between major partner groups and to address the fragmentation of corporate services, administration, travel, and human resource management.
The HHS has initiated an organisational change program to address organisational
inefficiencies and fragmented service coordination. The change program will transform the remote and indigenous health service delivery model from one fragmented by different funding lines for acute and episodic care, to one that provides greater emphasis on wellness, the prevention of disease and effective health interventions. This work will culminate in a trial of a family Centred Indigenous Responsive Model of Care in 2013-14. The long-term goal is for a robust population health approach to service planning and funding. Allocation and prioritisation of resources will be determined by a community driven service needs analysis, with the development of service portfolios in each community. This will lead to all services being coordinated with an improved focus on prevention, education and community capacity building.
The HHS will realise significant improvements from an integrated information
management system that enables eHealth medical records to be accessible from any location and which is easy to use and well supported. This will integrate with the broader national and state eHealth agenda and enable clinical data to be appropriately accessed by and/or exchanged with other systems and service providers. It is anticipated that the move towards an integrated information technology system will reduce the amount of paper records, will enhance the patient experience by providing more effective practice administration, improve networks and communication with other health providers, reduce duplication of services to the same patient and enable better monitoring and planning capabilities and, hence, improve the health of the whole community.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 13
Plans and priorities for 2013-14
Initiatives to be undertaken in 2013-14 include:
The Family Centred Indigenous Responsive Model of Care Project: Development and delivery of a learning framework that will support organisational changes to the service model and to operating standards.
The Integrated Electronic Health Record System Solution Project: Implementation and evaluation of an integrated electronic health record pilot trial at four service sites, prior to roll out across all sites within Cape York HHS.
Accreditation of the Cape York HHS by the Quality Improvement Council.
Cape York HHS Service Plan 2013-14: The HHS will take a lead through a collaborative approach to service planning/delivery to ensure access, equity and economy in health services.
Review of maternity services across Cape York with a view to safe and sustainable birthing services available in Cooktown and Weipa.
The transfer of ownership of land and buildings will occur following a joint assessment undertaken for Cape York HHS and the department to determine 'ownership readiness'. A strategic asset management framework has been developed to assist in gauging Cape York HHS’s level of capability, maturity and ownership readiness prior to transfer.
Developing and implementing a Cape York HHS Contestability Plan, including community control considerations, to ensure the government’s investment achieves value for money as outlined in the Blueprint for better healthcare in Queensland.
Page 14
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Stakeholder Engagement
Stakeholder engagement at the governance, executive and operational levels occurs in a wide range of forums and with a large number of organisations and people, including:
Cape York Health Partnership Council
Elected representatives
Local Members of Federal and State governments
Local Government Councils
Universities
Industry groups
Non-government service providers including Mookai Rosie Bi-Bayan and Wuchopperen Health Service
Traditional owners
Community Advisory Networks - Cooktown MPHS and Weipa IHS
Health Action Teams
Members of the public
Cape York HHS Clinicians and workforce. Cape York HHS has a collaborative relationship with its key partners: Apunipima Cape York Health Council, the Royal Flying Doctor Service (Queensland Section), and the Cairns and Hinterland HHS. Integral to the success of Cape York HHS initiatives is that the health service partners commit to working together to improve health outcomes. The Cape York HHS Communication and Engagement Strategies – for Consumers and Community, and for Clinicians and the Workforce – deliver guiding principles for consultation and participation in decision making processes to ensure all stakeholders have the opportunity to participate and ensure their views and ideas are considered in relation to provision of health services.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 15
Machinery of Government changes
Upon its establishment as a statutory body on 1 July 2012, Cape York HHS acquired responsibility for specific statutory functions set out in sec. 19 of the Act within in its defined service area. These functions were previously the responsibility of Queensland Health. The HHS represents the State of Queensland under ministerial directions of the Minister for Health. By way of Transfer Notices under the Act, the Minister for Health has, during 2012-13 year, affected the transfer of certain functions, assets, leases, third party agreements, statutory instruments and other matters to the HHS. These Transfer Notices are published in the Queensland Government Gazette and are available from the Queensland Government publications website: http://publications.qld.gov.au/. The Department, represented by its Director-General, continues its important role in providing strategic leadership and direction for the delivery of public sector health services across Queensland. Under the Act, the Director-General is similarly subject to directions of the Minister for Health and may develop and issue certain health service directives to the Service under sec. 47 of the Act. The Director-General and the Service must negotiate and enter into a service agreement for each specific period including amendments as necessary to the agreement. All service agreements entered into by the Service with the Director-General reflect and meet:
the strategic imperatives of the Service, and
the commitments to the community in the Department’s plans prior to 1 July 2012.
The establishment of the HHS and the subsequent machinery of government changes have achieved substantial benefits for all Cape York communities in terms of efficiency, effectiveness and economy including:
Strengthens local arrangements to ensure equitable access to health services for all eligible persons regardless of their geographic location
Greater local decision-making and accountability supported by local consumer, community, clinician and workforce engagement
Balancing the benefits of local and system-wide approaches.
Page 16
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Strategic direction Government objectives for the community
Cape York HHS contributes to the achievement of Government objectives within Getting Queensland back on track objectives to:
Grow a four pillar economy by:
Working with resource and tourism sector partners to ensure health services meet the needs of communities in Cape York, including planned expansions at South Emberley, and servicing greater visitor numbers.
Lower the cost of living by:
Delivering government’s commitment to improved Patient Transport Subsidy for patients who need to travel to health services.
Invest in better infrastructure and better planning by:
Completion of a Cape York HHS Organisational Review in November 2012. Undertaken by Ernst & Young, the review has informed broader organisational changes including a revision of executive roles and positions, reduction in service duplications between major partner groups, and addressing the current fragmentation of corporate services, administration, travel, and human resource management. The planned changes are expected to improve the Cape York HHS’s fiscal position and are not expected to impact on frontline clinical service delivery.
Reducing cross sector service duplication in primary health services.
Revitalise front line services by:
Improving the engagement and leadership of clinicians at the local level to advance system performance by implementing an engagement strategy in 2012-13.
Developing and implementing a working agreements protocol with the Far North Queensland Medicare Local.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 17
Restore accountability in government by:
Implementing Contracts Management systems in 2012-13 with a range of partnerships, and between public and private providers, to provide increased transparency across all services.
The HHS is committed to working closely with the Queensland Government to implement the Health Priorities for Action, and Blueprint for better healthcare in Queensland which sets four principle themes for the provision of health services in Queensland being:
1. Health services focused on patients and people.
2. Empowering the community and our workforce.
3. Providing Queensland with value in health services.
4. Investing, innovating and planning for the future.
Other whole-of-government plans/ specific initiatives
Cape York HHS has implemented a Performance Management Framework in alignment with The National Health Reform Agreement (2011) and the National Performance and Accountability Framework with standardised national indicators - designed to measure local health system performance and drive improved performance. Reflected within this Strategy are the principles of consumer involvement and engagement contained within the overarching directions of the Australian Charter of Healthcare Rights and the National Safety and Quality Health Service Standards. Aboriginal and Torres Strait Islander participation in and control of primary health services, has been identified in state and national policy as an important action to improve health outcomes, and contribution to closing the gap in life expectancy, and health outcomes between Indigenous and non-indigenous people. The Queensland Government has released the Transition to Aboriginal and Torres Strait Islander Community Control of Health Services in Queensland: Draft Strategic Policy Framework which is currently in a community consultation process before government endorsement. Cape York HHS has completed the community consultation with its communities and they have endorsed the draft policy and further work will be undertaken through the development and implementation of the Cape York Contestability Plan.
Page 18
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Cape York HHS objectives and performance indicators
In alignment with the directions of government, the Cape York Hospital and Health Service Strategic Plan 2013-2017 reflects local priorities and a vision of becoming a leading healthcare organisation capable of improving health outcomes across Cape York. The service objectives for 2012-16 are to:
Improve equity in access and health outcomes for Aboriginal and Torres Strait Islander people
Provide care that is person focused and family centred, appropriate, safe and effective
Partner with other organisations to deliver effective, high quality services and improved health outcomes for Cape York residents
Implement sustainable, responsible and innovative workforce solutions and use of resources.
HHS progress towards achieving its objectives are measured utilising principles of The Queensland Government Performance Management Framework—including the development of strategic and operational plans, and the publication of service results through the Service Delivery Statement 2012-13 and this Annual Report. Underpinned by the legislative frameworks (summarised in Figure 2) the Cape York HHS Service Agreement 2012-13 forms the primary vehicle through which the HHS performance is measured, reviewed and reported against defined performance indicators and targets to ensure outputs and outcomes are achieved.
Figure 2: Cape York HHS cascade of relevant performance management policy and documents
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 19
Key Performance Indicators are used to monitor the extent to which the HHS is delivering the objectives set out in the Service Agreement arranged under seven performance domains:
Access
Efficiency and financial performance
Safety and quality
Patient experience
Workforce
Mental Health and Alcohol and Other Drugs
Aboriginal and Torres Strait Islander Health.
Our service areas, service standards and other measures
During the reporting period the HHS measured its performance against its Closing the Gap targets and other health related performance indicators and initiatives included in the following Council of Australian Governments (COAG) Agreements, signed by the Queensland Government:
the National Indigenous Reform Agreement
the National Partnership Agreement on Closing the Gap in Indigenous Health Outcomes
the National Partnership Agreement for Indigenous Early Childhood Development.
In 2012-13 Cape York HHS achieved above target results for many of its Closing the Gap Indicators including:
1. A reduction in the percentage of Aboriginal and Torres Strait Islander low birth weight babies.
This key performance indicator (KPI) is a measure of Equity and Effectiveness-Access. Cape York HHS has achieved a reduction in the number of low birth weight babies from a baseline annual average of 14.4% in 2006-07 to 10.9% in 2011-12, well below the expected trajectory of 12.8% (for 2011-12).
2. A significant increase in the percentage of Aboriginal and Torres Strait Islander mothers receiving five or more antenatal visits during pregnancy.
This KPI is a measure of Health Status and Outcomes. In 2011-12 Cape York HHS achieved a significant increase in the percentage of birthing indigenous mothers receiving five or more antenatal visits. The HHS achieved a result of 98.6%, higher in comparison to the state’s non-indigenous result (93.8%) and significantly higher than the HHS target (93.8%).
Page 20
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
3. A reduction in the number of separations for Potentially Preventable Hospitalisations (PPH).
This KPI is a measure of Health System Performance for admissions to hospital that could have potentially been prevented through the provision of and access to appropriate primary and community health services. Cape York HHS has achieved a reduction in PPHs from its 2006-07 baseline rate of 5.05 to 3.5 in 2011-12, below its target trajectory rate of 3.65.
Cape York HHS has identified there are other indicators still requiring improvement including:
The number of separations for discharge against medical advice. Recruitment is underway for Aboriginal and Torres Strait Islander Liaison Officers aimed at addressing this target.
Improving identification of Aboriginal and Torres Strait Islander origin in Queensland public hospital inpatient records. More accurate identification of Aboriginal and Torres Strait Islander patients in data collections assures the complete measurement of both Aboriginal and Torres Strait Islander health status and the effectiveness of intervention programs. Aboriginal and Torres Strait Islander status is also used to determine aspects of facility funding. Staff awareness of the Aboriginal and Torres Strait Islander status of health service clients can facilitate the engagement of appropriate services (for example, contact with Indigenous Liaison Officers if requested or required).
The number of women who smoked at any stage of pregnancy. Smoking during pregnancy is associated with poor health outcomes for the foetus including increased risk of perinatal mortality, low birth weight, and other health related issues. This indicator is a key indicator to measure progress towards the national commitment to halving child (<5 yrs of age) mortality within a decade.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 21
Additionally the HHS is progressing work to continue improvement of Aboriginal and Torres Strait Islander Health indicators by:
Employment of Aboriginal and Torres Strait Islander Health Workers to ensure that services are delivered in a culturally respectful and appropriate manner - this can be very much attributed to the achievements in the Closing the Gap indicators.
Implementation of a model of care that is person and family-centred to provide holistic and culturally-appropriate health care.
Patients, families, and communities have access to a range of health and social services across the continuum.
Continuity of patient care is coordinated through a central trusted point and a strong primary care relationship.
Patient and family interaction may be with a range of medical, NGO and allied health professionals depending on need.
There is better coordination of care across the continuum.
Patients, families and communities have access and better understand the health services available to them, and more actively participate in decision making.
Patient and families participate in feedback and quality improvement activities.
There is effective interaction in communities and with community organisations.
Population health information is recorded and made available to assist in the design and delivery of services based on needs.
There is enhanced access to care, including more services being available, supported by new solutions such as case management and social networking.
Data availability
Nationally, the Public Reporting of Performance Information is mandated through the National Health Reform Agreement, the Commonwealth and State and Territory Governments, and delivered through quarterly hospital performance reports which are published through the My Hospitals website (http://www.myhospitals.gov.au/). In Queensland information on the performance of all HHSs is made available to the public through http://www.health.qld.gov.au/hospitalperformance/. Information on performance is also available through public documents such as budget papers and annual reports. Details of the data sources and data submission timeframes for all KPIs are presented within the Queensland Health Hospital and Health Service Performance Framework 2012-13 and the Cape York HHS Service Agreement 2012-13. Comprehensive information about information sources and reporting requirements can be viewed at: http://www.health.qld.gov.au/hhsserviceagreement/html/kpis.asp
Page 22
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Corporate governance Organisational structure
On 1 November 2012 the Board approved an organisational review to address new organisa-tional and staffing arrangements to meet current and anticipated needs in a creative, efficient and cost effective manner. Ernst and Young were engaged as external consultants to under-take this review. On 14 February 2013 the Board approved an organisational restructure:
Figure 3: Cape York HHS Organisational Structure
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 23
Division and title Incumbent Key responsibilities
Health Service Chief Executive
Susan Turner Overall management of Cape York HHS through major functional areas to ensure the delivery of key government objectives in improving the health and well-being of Cape York population.
Executive Director of Medical Services
Dr Anna Morgan Providing strategic leadership and advice in the efficient and effective management of clinical services and medical staff across the Cape York HHS.
Executive Director of Nursing and Midwifery
Christopher Cliffe Providing strategic leadership and advice in the efficient and effective management of Cape York HHS nursing and promoting learning development.
Executive Director Indigenous Health and Outreach Services
Karl Briscoe Directing, coordinating and leading the management of all outreach primary health services within Cape York HHS.
Executive Director Workplace Services
Julie Garry (Acting) Providing strategic leadership and advice in the efficient and effective management of Cape York HHS human resources and promoting learning development.
Chief Finance Officer/Director of Corporate Services
Rajesh Lal Leading the finance function across the Cape York HHS, formulating financial strategies, developing annual budgets, reporting HHS performance and designing policies to guide the efficient, effective and economic use of resources.
Executive Director Performance, Planning and Coordination
Karen Jacobs (Acting)
Managing all aspects of health service strategy development, integrated service planning, performance management systems and reporting, including analysis and advice on decision support system information for the organisation and contract management.
Executive Director Rural and Remote Clinical Support Unit
Dr Jill Newland Supporting, monitoring, managing and implementing clinical practice processes within Rural and Remote Health, providing leadership for the primary healthcare functions and providing advice on clinical governance.
Board Secretary Kenneth Leigh Providing strategic advice and governance support to the Cape York HH Board, its Committees and the Health Service Chief Executive to fulfil their functions under the Act.
Executive management team
Table 1: Cape York HHS Executive Management Team
Page 24
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Senior Management Group and Committees
Cape York HHS’s senior management group is the Executive Leadership Team, comprising:
Health Service Chief Executive (Chair)
Chief Finance Officer/Director of Corporate Services
Executive Director Indigenous Health and Outreach Services
Executive Director of Nursing and Midwifery
Executive Director of Medical Services
Executive Director Workplace Services
Executive Director of Rural and Remote Clinical Support
Executive Director Performance, Planning and Coordination
Board Secretary
Manager Health Worker Services. The Executive Leadership Team meets monthly on strategic agenda and fortnightly on operational agenda. Under its Terms of Reference the purpose and role of this group is to support the Health Service Chief Executive including:
making recommendations on the strategic direction, priorities and objectives of the HHS and reviewing and endorsing operational and business plans and actions to achieve these objectives
monitoring and reviewing HHS performance against service agreements and Key Performance Indicators and making recommendations for corrective action or improvements
reviewing organisational risks and compliance with relevant regulatory requirements, standards, policies and procedures.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 25
Committee Purpose and role Membership
Clinical Governance Committee
Reviews and makes recommendations on issues of quality and safety of health care across the HHS, including clinical effectiveness, education and training, clinical audit, continuous quality improvement, research and development, and clinical risk management. (Meets monthly)
Executive Director of Medical Services (Chair) Executive Director of Nursing and Midwifery Executive Director Indigenous Health and
Outreach Services Patient Safety / Quality Coordinator Multipurpose Health Care Centre Facility
representative Senior Medical Officer Outreach Pharmacist Health Worker Service HHS Learning and Development Coordinator Primary Health Care Clinician Allied Health Clinician Mental Health and ATODS Consumer representative Representatives of service delivery partners
Occupational Health and Safety Committee
Provides a strategic approach to ensuring a safe environment for patients, other clients, staff and visitors and developing safer ways of working and a culture of safety at work. (Meets bi-monthly)
Occupational Health and Safety Manager (Chair) Director of Corporate Services Executive Director of Nursing and Midwifery Patient Safety and Quality Manager Manager Buildings Engineering and
Maintenance Services Executive Director Workplace Services Business Managers (3) Workplace Health and Safety representatives
(several)
Business Services Management Committee
Reviews and makes recommendations on business services issues, risks, controls or activities or functions across the HHS. (Meets monthly)
Chief Finance Officer (Chair) Executive Director Workplace Services Executive Director Performance Planning and
Coordination Occupational Health and Safety Manager Finance Manager Manager Buildings Engineering and
Maintenance Services Business Managers (3) Manager Business Support Learning and Development Coordinator Senior Human Resources Advisor Board Secretary
The Board, Board Committees, Health Service Chief Executive and Executive Leadership Team are supported by the work of three key HHS management committees:
Table 2: Cape York HHS Management Committees
Page 26
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Board
Accountability for overall performance of the Service is vested in the Cape York Hospital and Health Board comprising a Chair, Deputy Chair and five other members. All members are appointed by the Governor in Council for specific terms and are responsible to the Minister for Health. The Board operates within its Board Charter to ensure statutory compliance. In the 2012-13 year the following members were appointed for the terms shown:
Table 3: Cape York Hospital and Health Board Members
Members of the Board contribute a mix of skills, knowledge and experience, including primary healthcare, health management, clinical expertise, legal expertise, financial management and business experience. All members reside in and/or have substantial community and business connections with the various Cape York communities and have a first-hand knowledge of the health consumer and community issues of Cape York. The Board ensures appropriate policies, procedures and systems are in place to optimise service performance, maintain high standards of ethical behaviour and, together with the HSCE, Susan Turner, provide leadership to the Service’s staff.
Name Term(s)
Robert (Bob) Michael McCARTHY
Chair 18/05/2013 to 17/05/2014
Louise Michelle PEARCE Deputy Chair 29/06/2012 to 04/10/2012; Acting Chair 5/10/2012 to 17/5/2013; and Deputy Chair 18/05/2013 to 17/05/2016
Tracey Del JIA 29/06/2012 to 17/05/2013; and 18/05/2013 to 17/05/2016
Associate Professor Dr Ruth Alison STEWART
29/06/2012 to 17/05/2013; and 18/05/2013 to 17/05/2016
Darryl HILL 29/06/2012 to 17/05/2013; and 18/05/2013 to 17/05/2016
Kevin Francis QUIRK 18/05/2013 to 17/05/2014
Scott Barry McCAHON Chair 18/05/2012 to 4/10/2012 (resigned)
Thomas Fairlane HUDSON 29/06/2012 to 17/05/2013 (term expired)
Angela JARKIEWICZ 29/06/2012 to 17/05/2013 (term expired)
Doreen HART 18/05/2013 to 18/05/2013 (resigned)
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 27
Board performance
The Board meets monthly and as required to perform the work of the Board in determining strategy, monitoring performance and decision-making. During 2012-13 there were 14 Board meetings held using a mix of face to face, videoconferencing and teleconferencing, with an overall members’ attendance rate of 91%. The Board is committed to community engagement, and has commenced holding Board meetings in various communities throughout Cape York. Board decision-making is supported by Board briefing papers and presentations by senior managers that inform the Board members of current and forthcoming strategic issues and operational performance, including service delivery, finances, human resources and risk management. Between Board meetings, the Board has delegated authority to the Chair to act on behalf of the Board in appropriate circumstances. There is continuing and extensive contact between the Chair and the Health Service Chief Executive to discuss major policy and operational matters, especially when these have, or are likely to have, strategic implications for the Board. As part of its commitment to achieving best practice corporate governance, the Board has implemented a formal and transparent process for assessing and evaluating the performance of the Board, including individual members.
Page 28
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Board committees
To enable the Board to concentrate on substantial strategy and performance management matters, other supplementary Board work has been divested to four Board committees under the Act, as follows:
Table 4: Cape York Hospital and Health Board Committees
The Board has approved each Committee’s specific Terms of Reference and Business Rules and receives the minutes of all Committee meetings.
Name Sched-uled frequency of |meetings
No. of Board mem-bers
No. of external mem-bers
Role in supporting the Board includes, for example:
No. of meetings 2012-13
Executive Committee
Monthly 3 Monitoring Service’s overall performance and working with Service’s Chief Executive in responding to critical emergent issues
5
Safety and Quality Committee
Quarterly 3 Monitoring Service’s govern-ance relating to safety and quality of health services
5
Finance and Investment Committee
Quarterly 3 Monitoring financial budgets and performance
11
Audit and Risk Committee
Quarterly 3 1 Monitoring Service’s internal controls, external audits and risk management
5
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 29
Audit and Risk Committee’s statutory disclosures
The Board’s Audit and Risk Committee comes within the ambit of an ‘audit committee‘ under the Financial and Performance Management Standard 2009 and the information required to be disclosed is as follows:
Table 5: Cape York HHS Board Audit and Risk Committee Disclosure
The Board has approved the Terms of Reference and Business Rules of the Committee, and the Committee has observed the terms of its charter and had due regard to Queensland Treasury’s Audit Committee Guidelines. The Audit and Risk Committee’s role, functions and responsibilities are:
Risk Management
Develop and recommend improvements to risk management policies and practices in line with international best practices.
Oversight the effectiveness of risk management and practices including those relating to compliance and legal risk.
Examine strategic and major risk and advise the Board on risk mitigation.
Review the effectiveness of the system for monitoring the agency’s compliance in regard to relevant laws, regulations and government policies.
Review the findings of any examinations by regulatory agencies, and any audit observations.
Name Period on Committee
Role on Audit and Risk Committee
Remuneration
Louise Pearce 18/5/13 to date Committee Chair See Note 26 to Financial Statements
Darryl Hill 1/7/12 to date Committee member See Note 26 to Financial Statements
Dr. Ruth Stewart 1/7/12 to date Committee member See Note 26 to Financial Statements
Angela Jarkiewicz 1/7/12 to 17/5/13
Former Committee Chair
See Note 26 to Financial Statements
Ian Jessup FCPA 13/12/12 to date
External non-Board member on Committee
Nil; pro bono
Page 30
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Financial statements
Review the appropriateness of accounting policies.
Review the appropriateness of significant assumptions made by management in preparing the financial statements.
Review the financial statements for compliance with prescribed accounting and other requirements.
Review, with management and the internal and external auditors, the results of the external audit and any significant issues identified.
Ensure that assurance with respect to the accuracy and completeness of the financial statements is given by management.
Internal control
Review the adequacy of the internal control structure and systems, including information technology security and control.
Review whether relevant internal control policies and procedures are in place and are effective, and the adequacy of compliance.
Assess the Service’s complex or unusual transactions or series of transactions, or any material deviation from the Service’s budget.
Consult with Queensland Audit Office regarding proposed audit strategies.
Internal audit
Review the adequacy of the budget and resources for the internal audit function, having regard for the HHS’s risk profile, and internal audit performance.
Review and approve the internal audit strategic and annual plans and any variations to these, ensuring suitable coverage and focus on key risks.
Receive internal audit reports and monitor action taken.
Review the level of management cooperation with internal audit and coordination with the external auditor.
External audit
Consult with external audit on the function’s proposed audit strategy, audit plan and audit fees for the year.
Review the findings and recommendations of external audit, the response to them by management, and monitor progress in implementing corrective action.
Assessing the extent of reliance placed by the external auditor on internal audit work.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 31
During the year, issues addressed by the Audit and Risk Committee and reported to the Board included:
regularly review of the Service’s risk management framework, policies and procedures and reporting, particularly the escalation of risks at all levels including to the Board
monitoring the preparation of annual financial statements and external audit by Queensland Audit Office
developing a comprehensive Committee work plan for approval by the Board
monitoring the progress of implementation of the finance system, SAP Assets, Procurement and Finance Information Resources (SAPFIR)
monitoring the development of the Internal Audit function and plan for the Service and recommending to the Board specific internal audit projects
making representations to the Department on key strategic audit and risk matters
reviewing the Service’s compliance framework, policies and procedures and reporting, including fraud control
reviewing and recommending to the Board the Cape York HHS Finance Management Practice Manual.
Related entities
Cape York HHS has not formed or acquired any related entities.
Internal audit
Cape York HHS has established an internal audit function and operates in accordance with the HHS’s approved Internal Audit Charter so as to provide independent, impartial and professional advice to the Board and executive management. The Charter is consistent with relevant audit and ethical standards. In addition, the Cape York HHS internal audit function has had due regard to Queensland Treasury’s Audit Committee Guidelines. The Head of Internal Audit reports and communicates functionally directly to the Board’s Audit and Risk Committee and administratively to the Health Service Chief Executive. The role and function of the internal audit is to be independent of all operational and functional management and undertake internal auditing activities that add value to the whole HHS by evaluating, benchmarking and recommending improvements to the effectiveness and efficiency of the HHS’s governance, controls and risk management processes. The work of the internal audit function is also independent from the work of the external auditors.
Page 32
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Internal audit has no limitation on its access to all HHS staff, administrative records, or other information it may require to perform its audit activities in accordance with the Annual Audit Plan which is reviewed and recommended by the Board’s Audit and Risk Committee and approved by the Health Service Chief Executive. Cape York HHS has put in place systems to ensure the effective, efficient and economical operation of the internal audit function and is further evaluating the options for appropriate resourcing of the function to ensure capacity and capability to undertake its planned activities. During 2012-13 the Cape York Hospital and Health Board approved the engagement of an external accounting firm, with specialist experience in internal audit, to undertake two key internal audit projects across the HHS covering payroll processes and internal controls.
Risk management
Cape York HHS follows a risk management policy based on AS/NZS ISO 31000:2009 Risk Management – Principles and Guidelines which involves the establishment of an appropriate infrastructure and culture designed to systematically identify, analyse, treat, monitor and communicate key operational and financial risks associated with HHS activities. Cape York HHS has implemented a risk management framework and procedure to identify and manage operational and financial risks in a proactive, integrated and accountable manner. This ensures that risks are identified, analysed, prioritised and managed through continuous improvement and performance strategies. Risk management is an agenda item for all team, management and Board meetings. Risks are identified at the system, district-wide or local sites, as appropriate, by way of risk audits, staff feedback, clinical or workplace incidents, or reviews. Using the HHS’s Integrated Risk Management Assessment Matrix every risk is assigned a risk rating and appropriately treated, managed and/or escalated in accordance with the procedure by executive governance committees based on whether the risk is a clinical, occupational health and safety related finance or business risk. A risk register is maintained for regular review, monitoring and reporting. Risks assessed as strategic and extreme and unable to be treated are escalated to the Board.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 33
Public Sector Ethics Act 1994 Cape York HHS is a prescribed public service agency under sec. 2 of the Public Sector Ethics Regulation 2010. Since its establishment on 1 July 2012, Cape York HHS has been committed to implementing and maintaining the values and standards of conduct outlined in the ‘Code of Conduct for the Queensland Public Service’ under the Public Sector Ethics Act 1994. All persons working for the HHS, whether on the Board, committees, management, clinicians, support staff, administrative staff or contractors are provided with education and training on the Code of Conduct and workplace ethics, conduct and behaviour policies. Line managers are required to incorporate ethics priorities and statutory requirements in all employee performance agreements, assessments and feedback. In addition to education and training at the point of recruitment, the HHS website provides all persons access to appropriate on-line education and training about public sector ethics, including their obligations under the Code and policies. It is a requirement by the HHS Chief Executive that all line managers ensure that staff regularly, at least once in every year, are given access to appropriate education and training about public sector ethics during their employment. When breaches of the Code of Conduct were identified in 2012-13 appropriate performance management or other action was taken to ensure continuing compliance with the Code. Where the breaches involved suspected unlawful conduct, the matter was referred to the department’s Ethical Standards Unit or other appropriate agency for any further action. In the development of the HHS Strategic Plan 2013-2017, the Board and executive management ensured that the values inherent in the Strategic Plan were congruent with the public sector ethics principles and the Code of Conduct. All HHS administrative procedures and management practices have proper regard to the ethics principles and values, and the approved code of conduct. The HHS is currently planning an extensive review during 2013-14 of its human resources policies, procedures and practices to ensure that they comply with all statutory requirements.
Page 34
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
External scrutiny Commencing for the 2012-13 financial year, Cape York HHS is subject to the external audit by Queensland Audit Office. As the delegate of the Auditor-General of Queensland, KPMG have issued an unqualified audit report for Cape York HHS’s financial statements for the 2012-13 year. There are no other significant findings or issues identified by an external reviewer on the operations or performance of the HHS.
Information systems and recordkeeping Cape York HHS creates, receives and keeps clinical and business documents and records to support legal, community, stakeholder and business requirements. Records include plans, reports, minutes, correspondence, publications, financial transactions, policy and procedures. The format of records is mainly paper and digital. Responsibility for service records maintained by the Department prior to 1 July 2012 was transferred to the HHS. The HHS’s Strategic Records Manager is driving a strategy to transform how the Service captures, uses and manages its information and records within the Queensland Government Information Management Policy Framework and the Cape York Information Governance Framework. During 2012-13 the Service completed the Queensland State Archives ‘Recordkeeping Survey of Queensland Public Authorities 2013’. As part of the HHS commitment to continuous improvement in information systems and recordkeeping, consideration is being given to the transition to an electronic information and records management system in 2013-14.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 35
Our people
Governance – Human Resources
Workforce planning, attraction and retention and performance
The 2012-2014 Workforce Plan for Cape York HHS identifies a key objective to assess, acquire, develop and align talent with business objectives while significantly reducing process costs, improving quality of recruitment, reducing retention risks and achieving higher levels of performance. The workforce profile is:
Full-time Equivalent (FTE) staff establishment as at 30 June 2013 is 368 employees, which includes both full-time employees and part-time employees, measured on a full time equivalent basis (reflecting Minimum Obligatory Human Resources Information (MOHRI))
Permanent retention rate 64.03%
Permanent separation rate 3.25% The strategies in place to attract and retain staff, and manage performance are:
Marketing
Building a Cape York HHS brand that will help attract and retain staff.
Utilising a range of communication mediums to promote Cape York HHS to potential staff. This included developing a CYHHS sub portal from QH WorkForUs (WFU) site that includes information about employment opportunities in Cape York HHS.
Analysis of entry and exit interview data, workplace survey data and occupational health and safety (OH&S) data to inform branding and associated marketing activities.
Recruitment
The recruitment strategy is to a create a greater awareness of the benefits of employment within Cape York HHS as an organisation within a remote and rural setting, rather than focussing on the benefits of specific positions. There is also an emphasis on specific recruitment tailored to Cape York HHS needs, rather than ad-hoc recruitment. The HHS has also focussed on Identification and consideration of alternative and non-traditional recruitment approaches, including collaborative approaches with other industry stakeholders.
Page 36
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Cape York HHS is up-skilling line managers on best practice recruitment processes/techniques as well as an efficient transition for new employees through the on-boarding process.
On-boarding
The approach to staff induction and orientation (on-boarding) is designed to be personalised – providing positive messages of caring for and respecting employees, while providing each individual the opportunity for self-paced learning. It is considered important to ensure all employees appointed to new positions receive information that is appropriate to their needs, creating an environment that welcomes employees as valued new staff members.
Performance management
The purpose of the performance management process is to enhance work performance and career development of employees by:
clarifying performance expectations
ensuring feedback and guidance on performance
ensuring alignment with and support of identified HHS goals
facilitating professional development and succession planning. Critical elements of the performance management strategy include ensuring performance management systems are in place and maintained in a timely way for eligible staff. Performance and Development (PAD) standards are also reviewed to ensure relevance to positions within the Health Service.
Learning and development
Cape York HHS respects its professional and committed workforce. Our staff operate within a supportive and just workplace culture with access to appropriate training and development activities, as well as infrastructure to research and implement evidence-based practice. To meet the growing demand for skilled staff, the Cape York HHS has developed a framework to build workforce capability by supporting and encouraging employees to participate in learning and development activities that enhance professional growth and are aligned with business strategies.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 37
Workplace culture
Motivation, productivity, quality work and retention are the results of a positive workplace culture. Cape York HHS aims to support and sustain a workplace environment reflective of:
fair and equal treatment of employees
achievements recognised and rewarded
open and honest communication
transparent decision making
two way feedback
strategic directions and plans
learning and development opportunities
career pathways. An assessment of the workplace culture is achieved via a Workplace Survey to determine how the organisational culture works to support or impede the organisation’s goals. Based on the outcomes of the survey, Cape York HHS is able to implement strategies for improvement.
Reward and recognition
To motivate and instil dedication among employees, Cape York HHS features staff and service achievements in newsletters and other relevant media. Employee length of service achievements are also celebrated and communicated throughout the organisation.
Policies and procedures
Policies and procedures are reviewed by executive and line managers with the purpose of identifying areas of uncertainty or difficulty in application. Feedback from workplace surveys also plays a critical role in establishing the effectiveness of policies and procedures. Cape York HHS recognises the contribution of workers with family responsibilities and aims to create a work environment where their needs are recognised, providing:
the elimination of provisions within human resource policies and practices and industrial instruments that discriminate against workers with family responsibilities
the development of flexible working arrangements and conditions to allow employees to balance working and family responsibilities.
Cape York HHS aims to approve requests, where reasonable, from employees for special leave in relation to their personal and family commitments.
Page 38
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Leadership
The development of leadership capabilities through mentoring is a strategy that has been adopted in order to achieve engagement of the team in business strategy and to portray a united front as a leadership team. It also aims to achieve consistency in the delivery of the management function that fits with organisational culture.
Industrial relations
A full-time Senior Industrial Relations Advisor has been appointed to provide a dedicated resource for employees, the Executive and management teams. This position forms part of the organisational re-structure with the primary purpose of providing policy interpretation, advice and consultancy and the management of complex employee relations and human resource matters.
Early retirement, redundancy and retrenchment
A program of redundancies was implemented during 2012-2013. During the period, 31 employees received redundancy payments at a cost $1.750M.
In October 2012 Cape York HHS proactively engaged Ernst & Young Australia to undertake an independent review of the organisation, to understand the breadth and size of opportunities available to meet immediate and medium term (three years) fiscal demands. The organisational review was completed in February 2013 and identified key opportunities for change, which informed the current restructure of Cape York HHS.
The organisational review provided the HHS with an opportunity to effect change and a blueprint to move forward to further develop or redesign services.
Cape York HHS subsequently completed an Expression of Interest process for voluntary redundancies. This process occurred between 18 February and 4 March 2013 and on conclusion, provided the opportunity to undertake a further redesign of services to improve efficiency, effectiveness and provide equitable access to Cape York communities.
Public sector renewal program
Cape York HHS is committed to the Queensland Government’s Public Sector Renewal Program to transform the Queensland Public Service to be more efficient - delivering better outcomes for the community and achieving best value for money for government services. The program includes operational efficiency reviews of Queensland Government agencies to analyse their core business, determine how efficiently and effectively services are delivered and provide recommendations on what can be discontinued or improved.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 39
Building on the executive management team’s work on an organisational re-design, the Board in November 2012 approved the engagement of Ernst & Young, a leading consulting firm experienced in service and financial reviews of health agencies using a core business methodology, to assist by undertaking an organisational review of the Service. The consultant’s report recommended organisational structural changes and improvements to service alignment that would better position the Service into the future, improve service outcomes, reduce services duplication, and achieve cost reductions and revenue optimisation opportunities. The Board considered the consultant’s report and executive management advice and subsequently approved an organisational restructure that commenced in March 2013. These changes and the focus on service delivery improvements have been communicated to staff, service delivery partners, agencies and organisations and the public in Cape York. Restructure updates are regularly communicated to employees in the form of the Health Service Chief Executive Communique. In 2012-13, there were 24 Communiques published. For staff, a dedicated intranet page has been in place since March 2013 which has published ‘Redesign Information’, including:
the implementation process
staff counselling information
organisation structure
redundancy advice and information
recruitment opportunities
support for job search.
Open Data
The following annual reporting requirements are not included in this Annual Report but instead are addressed through publication on the Queensland Government Open Data website (www.qld.gov.au/data):
Consultancies – total expenditure of $208,723 in 2012-13 year.
Overseas Travel - not applicable to the HHS for 2012-13
Queensland Multicultural Policy – Queensland Multicultural Action Plan 2011-14.
Page 40
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Financial summary Summary of financial performance
Cape York HHS’s core financial goal is to maintain a fully funded financial position which allows us to operate sustainable service that can provide high quality patient care at the most efficient cost. This financial goal underpins the sustainable delivery of high quality health services to Cape York communities into the future. Achieving this goal in 2012-13 year, its first year of operations, has required close and careful management of expenditure within budget to ensure the operations of the Service are carried out efficiently, effectively and achieving optimum value-for-money in accordance with the Queensland Government purchasing policy. The operating surplus for the 2012-13 year was $0.89 million was achieved mainly due to efficiency savings. Total expenses for 2012-13 year were $81.89 million, of which employee expenses were $47.86 million (58.4%) the majority of which was for staff involved in front line servicing. Total revenues for the 2012-13 year were $82.79 million, of which $80.98 million (97.8%) was government grants. At 30 June 2013, the HHS assets totalled $107.66 million and total liabilities were $7.38 million. The HHS is committed to continuously driving its strategies to increase revenues and further improve cost efficiencies and further develop its financial strength. To operate a sustainable service the HHS is required to ensure management of costs within budget and value-for-money expenditure in accordance with the State Government purchasing policy. This will be a continued area of focus and the HHS will also be working closely with the Contestability branch on this. Challenges that could affect the 2013-14 financial performance and position include:
uncertainty in attracting and retaining a skilled medical, nursing and health worker workforce, given the remoteness of the HHS’s services resulting in increased costs
appropriate funding to provide safe and sustainable birthing services in Cooktown and Weipa
capability and capacity to manage the transfer to the HHS the ownership of its land and buildings, the responsibility for employment of HHS staff and other functions
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 41
poor condition of buildings, requiring capital funding for new or upgraded facilities
continued Commonwealth and State grants investment in Cape York to provide population health and community service obligation health services to over 14,400 people, dispersed across a large geographical area and includes cattle properties, outstations, rural and remote communities.
Chief Finance Officer Statement
Section 77 (2)(b) of the Financial Accountability Act 2009, requires the nominated Chief Finance Officer (CFO) of each department to provide the Accountable Officer with a statement about whether the financial internal controls of the department are operating efficiently, effectively and economically. The Chief Finance Officer has provided the Health Service Chief Executive with a statement that the financial internal controls of the Hospital and Health Service are operating efficiently, effectively and economically.
See Attachment 1 for Financial Statements 2012-13
Page 42
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Compliance checklist Table 6: Compliance checklist
Summary of requirement Basis for requirement
Annual report reference
Letter of compliance
A letter of compliance from the account-able officer or statutory body to the rele-vant Minister
ARRs – section 8 Page 1
Accessibil-ity
Table of contents
Abbreviations
ARRs – section 10.1 Page 2
Page 3
Public availability ARRs – section 10.2 Page 1
Interpreter service statement Queensland Govern-ment Language Services Policy
ARRs – section 10.3
Page 1
Copyright notice Copyright Act 1968
ARRs – section 10.4
Page 1
Information licensing Queensland Govern-ment Enterprise Archi-tecture – Information licensing
ARRs – section 10.5
Page 4
General information
Introductory Information ARRs – section 11.1
Page 5
Agency role and main functions ARRs – section 11.2 Page 6
Operating environment ARRs – section 11.3 Page 8
Machinery of Government changes ARRs – section 11.4 Page 15
Non-financial perform-ance
Government objectives for the community
ARRs – section 12.1 Page 16
Other whole-of-government plans / spe-cific initiatives
ARRs – section 12.2 Page 17
Agency objectives and performance indi-cators
ARRs – section 12.3 Page 18
Agency service areas, service standards and other measures
ARRs – section 12.4 Page 19
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 43
Basis for requirement
Annual report reference
Financial perform-ance
Summary of financial performance ARRs – section 13.1 Page 40
Chief Finance Officer (CFO) statement
ARRs – section 13.2 Page 41
Governance – manage-ment and structure
Organisational structure ARRs – section 14.1 Page 22
Executive management ARRs – section 14.2 Page 23
Related entities ARRs – section 14.3 Page 31
Boards and committees ARRs – section 14.4 Page 28
Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 (section 23 and Schedule) ARRs – section 14.5
Page 33
Governance – risk manage-ment and accountabil-ity
Risk management ARRs – section 15.1 Page 32
External Scrutiny ARRs – section 15.2 Page 34
Audit committee ARRs – section 15.3 Page 29
Internal Audit ARRs – section 15.4 Page 30
Public Sector Renewal Program ARRs – section 15.5 Page 38
Information systems and recordkeeping
ARRs – section 15.7 Page 34
Governance – human resources
Workforce planning, attraction and retention and performance
ARRs – section 16.1 Page 35
Early retirement, redundancy and retrenchment
Directive No.11/12 Early Retirement, Redundancy and Re-trenchment
ARRs – section 16.2
Page 38
Voluntary Separation Program ARRs – section 16.3 n/a
Summary of Requirement
Page 44
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009 ARRs Annual report requirements for Queensland Government agencies
Summary of requirement Basis for requirement Annual report reference
Open Data Open Data ARRs – section 17 Page 39
Financial statements
Certification of financial statements
FAA – section 62
FPMS – sections 42, 43 and 50
ARRs – section 18.1
Attachment 1, Page A31
Independent Auditors Report FAA – section 62
FPMS – section 50
ARRs – section 18.2
Attachment 1, Page A32
Remuneration disclosures Financial Reporting Requirements for Queensland Govern-ment Agencies
ARRs – section 18.3
Attachment 1, Page A27
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 45
Aurukun Primary Health Care Centre The Primary Health Care Centre is located on Kang Kang Road, the main street in Aurukun. Postal Address: Aurukun Primary Health Care Centre Aurukun QLD 4871 Telephone: 07 4060 6133 Fax: 07 4060 6163 Coen Primary Health Care Centre The Primary Health Care Centre is located on Armbrust Street, Coen. Postal Address: Coen Primary Health Care Centre c/o Post Office Coen QLD 4871 Telephone: 07 4060 1166 Fax: 07 4060 1151 Cooktown Multi Purpose Health Service 48 Hope Street, Cooktown Postal Address: Cooktown Multi Purpose Health Service PO Box 101 Cooktown QLD 4895 Telephone: 07 4043 0100 Fax: 07 4043 0108 Hope Vale Primary Health Care Centre The Hope Vale Primary Health Care Centre is located on Aerodrome Road, Hope Vale. Postal Address: Hope Vale Primary Health Care Centre c/o Post Office Hope Vale QLD 4895 Telephone: 07 4060 9171 Fax: 07 4060 9211
Kowanyama Primary Health Care Centre The Kowanyama Primary Health Centre is located on Carrington Street, Kowanyama. Postal Address: Kowanyama Primary Health Care Centre Carrington Street Kowanyama QLD 4871 Telephone: 07 4060 5133 Fax: 07 4060 5140 Laura Primary Health Care Centre 1 Gladwell Court, Laura Postal Address: Primary Health Care Centre c/o Post Office Laura QLD 4871 Telephone: 07 4060 3320 Fax: 07 4060 3325 Fax: 07 4060 5140 Lockhart River Primary Health Care Centre The Lockhart River Primary Health Care Centre is located on Paytam Street, Lockhart River. Postal Address: Lockhart River Primary Health Care Centre Lockhart River QLD 4871 Telephone: 07 4060 7155 Fax: 07 4060 7140 Mapoon Primary Health Care Centre The Primary Health Care Centre is located on the main street in Mapoon. Postal Address: Mapoon Primary Health Care Centre PO Box 213 Weipa QLD 4874 Telephone: 07 40909174 Fax: 07 40909182
Cape York Hospital and Health Service directory
Page 46
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Malakoola Primary Health Care Centre (Napranum) The Primary Health Care Centre is located on Munding road, Napranum. Postal Address: Malakoola Health Centre PO Box 52 Weipa QLD 4874 Telephone: 07 4069 7459 Fax: 07 4069 7312 Pormpuraaw Primary Health Care Centre The Primary Health Care Centre is located on Korka St, Pormpuraaw. Postal Address: Pormpuraaw Primary Health Care Centre Pormpuraaw QLD 4871 Telephone: 07 4060 4233 Fax: 07 4060 4239
Weipa Integrated Health Service The Weipa Integrated Health Service is located Lot 407, John Evans Drive, Weipa. Postal Address: Weipa Hospital PO Box 341 Weipa QLD 4874 Telephone: 07 4082 3900 Fax: 07 4082 3609 Wujal Wujal Primary Health Care Centre The Wujal Wujal Primary Health Care Centre is located on the main road in Wujal Wujal. Postal Address: Wujal Wujal Primary Health Care Centre PMD 1011 Wujal Wujal Via Cooktown QLD 4895 Telephone: 07 4083 9000 Fax: 07 4060 8118
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 47
Feedback survey
Cape York HHS is interested in hearing your feedback on our Annual Report 2012-2013. Please help us by taking a few minutes to complete this survey so that we can continue to improve the quality of our Annual Report. How to complete the survey An electronic version of this survey is available on Cape York HHS’s website at www.health.qld.gov.au/capeyork Alternatively, please return the completed survey to: [email protected]
1. The level of detail in the Annual
Report was:
□ too high
□ appropriate
□ not enough
□ nowhere near enough 2. The writing style and language used in the Annual Report was:
□ too complex
□ just right
□ too simple
□ far too simple 3. Overall, I found the presentation of the Annual Report to be:
□ excellent
□ good
□ average
□ poor
4. Overall, how do you rate the value of the information in the Annual Report:
□ highly valuable
□ valuable
□ of some value
□ of no value 5. Overall I found the Annual Report to be:
□ of very low quality
□ of low quality
□ of average quality
□ of high quality
□ of very high quality 6. What category of user of this Annual Report are you?
□ health professional
□ elected official
□ academia
□ student
□ federal / state / local government employee
□ other (please specify) _______________________________
Page 48
Cap
e Y
ork
Ho
spit
al a
nd
Hea
lth
Ser
vice
An
nu
al R
epo
rt 2
012-
2013
Do you have any other comments or feedback on Cape York HHS’s Annual Report? __________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Do you have any suggestions for how Cape York HHS could improve its Annual Report in the future?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
Thank you for your comments.
Cap
e Yo
rk Ho
spital an
d H
ealth S
ervice An
nu
al Rep
ort 2012-2013
Page 49
Attachment One
Financial Statements - 30 June 2013
Cape York Hospital and Health Service ABN 99 754 543 771
Cape York Hospital and Health Service Financial statements 30 June 2013
Contents Page
Financial report Statement of comprehensive income A1 Statement of financial position A2 Statement of changes in equity A3 Statement of cash flows A4 Notes to and forming part of the financial statements A5 Management certificate A31 Independent auditor's report A32
General information Cape York Hospital and Health Service is a Queensland Government statutory body established under theHospital and Health Boards Act 2011 and its registered trading name is Cape York Hospital and Health Service. Cape York Hospital and Health Service is controlled by the State of Queensland which is the ultimate parententity. The head office and principal place of business of the Agency is: WEIPA INTEGRATD HEALTH SERVICES Lot 407 John Evans Drive WEIPA QLD 4874 A description of the nature of the Agency's operations and its principal activities are included in the notes to thefinancial statements. For information in relation to Cape York Hospital and Health Service’s financial statements, email [email protected] or visit the Cape York Hospital and Health Service website atwww.health.qld.gov.au/capeyork.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A1
Cape York Hospital and Health Service Statement of comprehensive income For the year ended 30 June 2013
Note 2013$'000
Revenue User charges and fees 5 886Grants and other contributions 6 80,989 Other revenue 7 912 Gains 8 3 Total revenue 82,790 Expenses Employee expenses 9 507Health service employee expenses 10 43,936Supplies and services 11 25,546Grants and subsidies 12 6,249Depreciation and amortisation 13 4,530Impairment losses 14 146Other expenses 15 983Total expenses 81,897 Operating result for the year 893
Other comprehensive income for the year Items that will not be re-classified to operating result Increase in asset revaluation surplus 24 7,846
Total other comprehensive income for the year 7,846
Total comprehensive income for the year 8,739
The accompanying notes form part of these statements.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A2
Cape York Hospital and Health Service Statement of financial position As at 30 June 2013
Note 2013$'000
Assets
Current assets Cash and cash equivalents 16 5,629Trade and other receivables 17 2,978Inventories 18 240Other 19 31Total current assets 8,878
Non-current assets Property, plant and equipment 20 98,783Total non-current assets 98,783
Total assets 107,661
Liabilities
Current liabilities Trade and other payables 21 7,068Provisions 22 292Accrued employee benefits 23 26Total current liabilities 7,386
Total liabilities 7,386
Net assets 100,275
Equity Contributed equity 91,536Asset revaluation surplus 24 7,846Accumulated surplus 893
Total equity 100,275
The accompanying notes form part of these statements.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A3
Cape York Hospital and Health Service Statement of changes in equity For the year ended 30 June 2013
Note
Contributed equity $’000
Asset revaluation
surplus $’000
Accumulated surplus $’000
Total $’000
Balance at 30 June 2012 - - - -
Total comprehensive income for the year
Operating result - - 893 893Total other comprehensive income 24 - 7,846 - 7,846Total comprehensive income for the year - 7,846 893 8,739
Transactions with owners represented directly in equity
Transfer of net assets on 1 July 2012 31 93,797 - - 93,797Equity injections 32 2,230 - - 2,230Equity withdrawals 32 (4,491) - - (4,491)Total transactions with owners 91,536 - - 91,536 Balance at 30 June 2013 91,536 7,846 893 100,275
The accompanying notes form part of these statements.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A4
Cape York Hospital and Health Service Statement of cash flows For the year ended 30 June 2013
2013Note $'000
Cash flows from operating activities
Inflows User charges and fees 886Grants and other contributions 73,554Interest received 2 Other revenue 909GST collected 396 GST input tax credit from ATO 1,585 Total 77,332 Outflows Employee expenses 507Health service employee expenses 41,921Supplies and services 20.467Grants and subsidies 6,249 Other expenses 1,071GST paid to suppliers 1,664GST remitted to ATO 351Total 72,230 Net cash provided by (used in) operating activities 36 5,102 Cash flows from investing activities Inflows Sales of property, plant and equipment 3 Outflows Payments for property, plant and equipment (1,131)
Net cash provided by (used in) investing activities (1,128)
Cash flows from financing activities
Inflows
1,655Equity injection
Net cash provided by (used in) financing activities 1,655 Net increase in cash and cash equivalents 5,629
Cash and cash equivalents at the end of the financial year 16 5,629 The accompanying notes form part of these statements.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A5
Notes to and forming part of the financial statements 2012-13
Notes to the financial statements Page
Note 1 Objectives and strategic priorities A6Note 2 Significant accounting policies A6Note 3 Critical accounting judgements, estimates and assumptions A13Note 4 Major services, activities and other events A15Note 5 User charges and fees A17Note 6 Grants and other contributions A17Note 7 Other revenue A17Note 8 Gains A17Note 9 Employee expenses A17Note 10 Health service employee expenses A18Note 11 Supplies and services A18Note 12 Grants and subsidies A18Note 13 Depreciation and amortisation A18Note 14 Impairment losses A18Note 15 Other expenses A19Note 16 Cash and cash equivalents A19Note 17 Trade and other receivables A19Note 18 Inventories A19Note 19 Other current assets A19Note 20 Property, plant and equipment A20Note 21 Trade and other payables A21Note 22 Provisions A21Note 23 Accrued employee benefits A21Note 24 Asset revaluation surplus A21Note 25 Financial instruments A21Note 26 Key management personnel disclosures A23Note 27 Remuneration of auditors A28Note 28 Contingent liabilities A28Note 29 Commitments A28Note 30 Related party transactions A28Note 31 Transfer of assets and liabilities from the Department of Health A29Note 32 Transactions with owners as owners A29Note 33 Trust transactions and balances A30Note 34 Economic dependency A30Note 35 Events after the reporting period A30Note 36 Reconciliation of surplus to net cash from operating activities A30
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A6
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 1. Objectives and strategic priorities Cape York Hospital and Health Service's (the Agency) objective is to provide high quality remote area care. Toachieve this, it is essential that services are well planned and organised and that they evolve and change in line withchanging practices and community needs. This is reflected in the following four strategic priorities:
Improve equity in access and health outcomes for Aboriginal and Torres Strait Islander people. Care is person focused and family centred, appropriate, safe and effective. Partnerships deliver effective, high quality services and improved health outcomes for Cape York
Peninsula residents. Sustainable, responsible and innovative workforce solutions and use of resources.
Cape York Hospital and Health Service is predominantly funded for the major services it delivers by grants from the Queensland and Commonwealth Governments.
Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. (a) Statement of compliance
The financial statements have been prepared in compliance with section 62 of the Financial Accountability Act 2009 andsection 43 of the Financial and Performance Management Standard 2009. These financial statements are general purpose financial statements and have been prepared on an accrual basis in accordance with Australian AccountingStandards and Interpretations issued by the Australian Accounting Standards Board (AASB) applicable to not-for-profit entities as Cape York Hospital and Health Service is a not-for-profit entity. (b) Issuance of financial statements
The financial statements are presented in Australian dollars which is the Agency's functional currency. The financial statements are authorised for issue by the Chair of the Board, the Chief Executive and the Chief FinanceOfficer at the date of signing the Management Certificate. (c) Rounding and comparatives
Amounts in this report have been rounded off to the nearest thousand dollars, or in certain cases, the nearest dollar. As the Cape York Hospital and Health Service commenced operations on the 1 July 2012 there are no comparativefigures in the financial statements. (d) The reporting entity
Cape York Hospital and Health Service was established as a statutory body on 1 July 2012 under the Hospital and Health Boards Act 2011. The Agency provides comprehensive primary health care, acute care, visiting specialist and sub-acute services through a network of two multipurpose hospitals (Weipa and Cooktown) and ten primary health care clinics (Aurukun, Coen,Hopevale, Laura, Lockhart River, Kowanyama, Mapoon, Napranum, Pormpuraaw and Wujal Wujal). (e) Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, therevaluation of certain classes of property, plant and equipment.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A7
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 2. Significant accounting policies (continued) (f) Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Agency's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.
(g) Trust transactions and balances
Cape York Hospital and Health Service acts in a fiduciary trust capacity in relation to patient trust accounts. The Agency undertakes certain trustee transactions with regards to purchasing items on behalf of patients for their personal use. As the Agency acts only in a custodial role in respect of these transactions and balances, they are not recognised in the financial statements. Trust activities are included in the annual audit performed by the Auditor-General of Queensland. Note 33 provides additional financial information in respect of trust transactions and balances. . (h) Revenue recognition
Revenue is recognised when it is probable that the economic benefit will flow to the Agency and the revenue can bereliably measured. Revenue is measured at the fair value of the consideration received or receivable. User charges and fees User charges and fees are controlled by the Agency when they can be deployed for the achievement of the Agency'sobjectives. User charges and fees controlled by the Agency comprise of hospital fees and sales of goods and services.Hospital fees mainly consist of private patient hospital fees, interstate patient revenue and Department of Veterans’Affairs revenue.
Private patient hospital fees revenue is recognised when invoices are raised. Interstate patient revenue and Departmentof Veterans’ Affairs revenue are recognised when received by the Agency. Grants and other contributions Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year inwhich the Agency obtains control over them. This includes amounts received from the State and CommonwealthGovernment for programs that have not been fully completed at the end of the financial year. Where grants are received that are reciprocal in nature, revenue is recognised over the term of the funding arrangements. Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value canbe determined reliably and the services would be purchased if they had not been donated. Cape York Hospital and Health Service is predominantly funded by non-reciprocal grants from the Department of Health and recognised as revenue when received. The amount of this grant is governed and determined by a ServiceAgreement between the Department of Health and Cape York Hospital and Health Service. This agreement is reviewedperiodically in line with Queensland Treasury's budget timetable and updated for changes in activities and prices ofservices delivered by Cape York Hospital and Health Service. Rent revenue Rent revenue consists of rent received for the lease of Old Weipa Hospital. Rent is received quarterly but is recognisedon a monthly basis.
Other revenue Other revenue consists mainly of sale of property, plant and equipment, contract staff recoveries from Workcover and additional funding received for the Rural Generalist Program.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A8
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 2. Significant accounting policies (continued)
(i) Income tax
The Agency is a State body as defined under the Income Tax Assessment Act 1936 and it is exempt from payingincome tax. (j) Cash and cash equivalents
Cash and cash equivalents include cash on hand and cash at bank.
(k) Trade and other receivables
Trade receivables are initially recognised at carrying value less any provision for impairment. Trade receivables aregenerally due for settlement within 30 days.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when thereis objective evidence that the Agency will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financialreorganisation and default or delinquency in payments (more than 60 days overdue) are considered indicators that thetrade receivable may be impaired. The amount of the impairment allowance is the difference between the asset’scarrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. Other receivables are recognised at carrying value less any impairment losses. (l) Inventories
Inventories consist of drugs and pharmaceutical supplies held for distribution to the hospitals and primary health care centres. Inventories are measured at cost. Unless material, inventories do not include supplies held for ready use in thewards throughout the hospital and health care facilities and are expensed on issue from the Agency’s main store room.
(m) Property, plant and equipment
Land and buildings are measured at fair value in accordance with AASB 116 Property, Plant and Equipment and Queensland Treasury’s Non Current Asset Policies for the Queensland Public Sector. Land is measured at fair value each year using independent revaluations, desktop market revaluations or indexation by the State Valuation Service within the Department of Natural Resources and Mines. Independent revaluations are performed with sufficient regularity to ensure assets are carried at fair value. Buildings are measured at fair value utilising either independent revaluation or applying an interim revaluation methodology developed by the externalregistered valuer. Assets under construction are not revalued until they are ready for use. Reflecting the specialisednature of the Agency’s buildings (health service buildings and on hospital-site residential facilities), fair value is determined using depreciated replacement cost methodology. Depreciated replacement cost is determined as the replacement cost less the cost to bring to current standards. Revaluation increments are credited to the asset revaluation surplus of the appropriate class, except to the extent itreverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relatingto that asset class. The Agency has adopted the gross method of reporting comprehensive revalued assets. This method restatesseparately the gross amount and related accumulated depreciation of the assets comprising the class of revaluedassets. Accumulated depreciation is restated proportionally in accordance with the independent advice of the appointed valuers/quantity surveyors. The proportionate method has been applied to those assets that have beenrevalued by way of indexation.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A9
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 2. Significant accounting policies (continued) (m) Property, plant and equipment (continued) Plant and equipment is stated at cost less accumulated depreciation and any impairment. Cost includes expenditurethat is directly incurred in bringing the asset ready for use. Where assets are received for no consideration from another Queensland Government department (whether as a resultof a machinery-of-Government change or other involuntary transfer), the acquisition cost is recognised as the grosscarrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation. Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer fromanother Queensland Government entity, are initially recognised at their fair value at the date of acquisition. Property, plant and equipment under construction is not recognised as an asset until it is ready for use. Items of property, plant and equipment with a cost or other value equal to more than the following thresholds and auseful life of more than one year are recognised at acquisition. Items below these values are expensed on acquisition. Class Threshold $ Land 1 Buildings* 10,000 Plant and equipment 5,000
*Buildings asset class includes land improvements. Depreciation is calculated on a straight-line basis (excluding land) over the assets’ expected useful lives as follows: Buildings 30 years Plant and equipment 5-20 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reportingdate. Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the leaseor the estimated useful life of the asset, whichever is shorter. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit tothe Agency. Gains and losses between the carrying amount and the disposal proceeds are taken to the statement of comprehensive income.
(n) Deed of Grant in Trust Land
Cape York Hospital and Health Service is located on land assigned to it under a Deed of Grant in Trust (DOGIT) underSection 341 of the Land Act 1994. Land Held at $1 Land parcels which are located in reserve areas and which cannot be bought or sold are recorded in the Land assets fora nominal value of $1 as there is no active and liquid market for these land sections.
Land not recognised in the Financial Statements The Agency has constructed buildings as Health Care Centres in DOGIT areas on both freehold and reserve land.While the buildings are recorded as assets in the financial statements, the land is not as the Agency does not control theland element of these properties. The land element is recorded in the Government Land Register as improvements only. Note 2. Significant accounting policies (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A10
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 (o) Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that thecarrying amount may not be recoverable. An impairment loss is recognised in expenses for the amount by which the asset's carrying amount exceeds itsrecoverable amount. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimateof its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that wouldhave been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revaluated amount, in which case the reversal of theimpairment loss is treated as a revaluation increase. Recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. As the Agency is not-for-profit, value-in-use is the depreciated replacement cost of an asset as the future economic benefits of the asset are notprimarily dependent upon the asset's ability to generate net cash inflows and as the Agency would, if deprived of the asset, replace its remaining future economic benefits. (p) Trade and other payables
These amounts represent liabilities for goods and services provided to the Agency prior to the end of the financial yearwhich are unpaid. Due to their short-term nature they are measured at the agreed contract or purchase price.
(q) Financial instruments A financial instrument is any contract that gives rise to both a financial asset of an entity and a financial liability or equity instrument of another entity. Cape York Hospital and Health Service holds financial instruments in the form of cash,receivables and payables. The Agency accounts for its financial instruments in accordance with AASB 139 Financial Instruments: Recognition and Measurement and reports instruments under AASB 7 Financial Instruments: Disclosures. The Agency does not enter into transactions for speculative purposes, or for hedging. Financial assets and financialliabilities are recognised in the statement of financial position when the Agency becomes a party to the contractualprovisions of the financial instrument. (r) Provisions
Provisions are recognised when the Agency has a present (legal or constructive) obligation as a result of a past event, itis probable the Agency will be required to settle the obligation, and a reliable estimate can be made of the amount of theobligation. The amount recognised as a provision is the best estimate of the consideration required to settle the presentobligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the timevalue of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. (s) Employee benefits
Pursuant to s. 80 of the Hospital and Health Boards Act 2011, on establishment of the Cape York Hospital and Health Service, the health service employees of the Department of Health are taken to be employed by the Agency on the same terms, conditions and entitlements.
Under this arrangement:
The health service employees legally remain as Department of Health employees.
The Agency is responsible for the day to day management of these Department of Health employees.
The Agency reimburses the Department of Health for the salaries and on-costs of these Department of Health employees.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A11
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 2. Significant accounting policies (continued) (s) Employee benefits (continued) As a result of this arrangement, the Agency treats the reimbursements to the Department of Health for Department of Health employees in these financial statements as contractors. These reimbursements are shown under Note 10. In addition to the employees contracted from the Department of Health, the Agency has engaged employees directly. The information detailed below relates specifically to the directly engaged employees. Wages and salaries, annual leave and sick leave Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12months of the reporting date are recognised in current liabilities in respect of employees' services up to the reportingdate and are measured at the amounts expected to be paid when the liabilities are settled. Annual leave The Queensland Government's Annual Leave Central Scheme (ALCS) became operational on 30 June 2008 for departments, commercial business units, shared service providers and selected not-for-profit statutory bodies. The Agency was admitted into this arrangement effective 1 July 2012. Under this scheme, a levy is made on the Agency to cover the cost of employees' annual leave (including leave loading and on-costs). The levies are expensed in the period in which they are payable. Amounts paid to employees for annual leave are claimed from the scheme quarterly in arrears. The Department of Health centrally manages the levy and reimbursement process on behalf of the Agency’s. No provision for annual leave is recognised in the Agency's financial statements as the liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Long service leave The liability for long service leave is recognised in current and non-current liabilities, depending on the unconditional right to defer settlement of the liability for at least 12 months after the reporting date. The liability is measured as thepresent value of expected future payments to be made in respect of services provided by employees up to the reportingdate using the projected unit credit method. Consideration is given to expected future wage and salary levels,experience of employee departures and periods of service. Expected future payments are discounted using marketyields at the reporting date on national government bonds with terms to maturity and currency that match, as closely aspossible, the estimated future cash outflows. Retirement benefits obligation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Governmentemployees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in theperiod in which they are paid or payable and the Agency's obligation is limited to its contribution to QSuper. The QSuperscheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a Whole-of-Government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. (t) Insurance
Property and general losses above a $10,000 threshold are insured through the Queensland Government InsuranceFund (QGIF). Health litigation payments above a $20,000 threshold and associated legal fees are also insured throughQGIF. Premiums are calculated by QGIF on a risk assessed basis. The Agency pays a premium to Workcover Queensland in respect of its obligations for employee compensation.
(u) Services received free of charge or for a nominal value
Contributions of services are recognised only if the services would have been purchased if they had not been donatedand their fair value can be measured reliably. When this is the case, an equal amount is recognised as revenue and an expense.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A12
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 2. Significant accounting policies (continued) (v) Contributed equity
Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-Government changes are adjusted to contributed equity in accordance with Interpretation 1038'Contributions by Owners Made to Wholly-Owned Public Sector Entities'.
(w) Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is notrecoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or aspart of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GSTrecoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement offinancial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financingactivities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. (x) New, revised or amending Accounting Standards and Interpretations adopted
The Agency has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been earlyadopted. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financialperformance or position of the Agency.
(y) New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yetmandatory, have not been early adopted by the Agency for the annual reporting period ended 30 June 2013. TheAgency's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Agency, is set out below.
AASB 9 Financial Instruments, 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and 2012-6 Amendments to AustralianAccounting Standards arising from AASB 9
This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1January 2015 and completes phase I of the IASB's project to replace IAS 39 (being the international equivalent to AASB139 Financial Instruments: Recognition and Measurement). This standard introduces new classification and measurement models for financial assets, using a single approach to determine whether a financial asset is measured at amortised cost or fair value. The accounting for financial liabilities continues to be classified and measured inaccordance with AASB 139, with one exception, being that the portion of a change of fair value relating to the entity’s own credit risk is to be presented in other comprehensive income unless it would create an accounting mismatch. TheAgency will adopt this standard from 1 July 2015 but the impact of its adoption is yet to be assessed by the Agency.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A13
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 2. Significant accounting policies (continued) (y) New Accounting Standards and Interpretations not yet mandatory or early adopted (continued) AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising fromAASB 13 This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1January 2013. The standard provides a single robust measurement framework, with clear measurement objectives, formeasuring fair value using the 'exit price' and it provides guidance on measuring fair value when a market becomes lessactive. The 'highest and best use' approach would be used to measure assets whereas liabilities would be based ontransfer value. As the standard does not introduce any new requirements for the use of fair value, its impact on adoptionby the Agency from 1 July 2013 should be minimal, although there will be increased disclosures where fair value isused.
AASB 119 Employee Benefits (September 2011) and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) This revised standard and its consequential amendments are applicable to annual reporting periods beginning on orafter 1 January 2013. The amendments make changes to the accounting for defined benefit plans and the definition ofshort-term employee benefits, from 'due to' to 'expected to' be settled within 12 months. The later will require annualleave that is not expected to be wholly settled within 12 months to be discounted allowing for expected salary levels in the future period when the leave is expected to be taken. The adoption of the revised standard from 1 July 2013 isexpected to reduce the reported annual leave liability of the Agency. AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management PersonnelDisclosure Requirement These amendments are applicable to annual reporting periods beginning on or after 1 July 2013, with early adoption notpermitted. They amend AASB 124 'Related Party Disclosures' by removing the disclosure requirements for individualkey management personnel (KMP). The adoption of these amendments from 1 July 2014 will remove the duplication ofinformation relating to individual KMP in the notes to the financial statements and the directors report. As the aggregatedisclosures are still required by AASB 124 and during the transitional period the requirements may be included in theCorporations Act or other legislation, it is expected that the amendments will not have a material impact on the Agency.
AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039 This amendment is applicable to annual reporting periods beginning on or after 1 January 2013. The amendmentremoves reference in AASB 1048 following the withdrawal of Interpretation 1039. The adoption of this amendment willnot have a material impact on the Agency.
AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments These amendments are applicable to annual reporting periods beginning on or after 1 January 2013. They amendAASB 10 and related standards for the transition guidance relevant to the initial application of those standards. Theamendments clarify the circumstances in which adjustments to an entity’s previous accounting for its involvement withother entities are required and the timing of such adjustments. The adoption of these amendments will not have amaterial impact on the Agency.
Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions thataffect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases itsjudgements, estimates and assumptions on historical experience and on other various factors, including expectations offuture events management believes to be reasonable under the circumstances. The resulting accounting judgementsand estimates may differ from actual results. The judgements, estimates and assumptions that have a significant risk ofcausing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within thenext financial year are discussed below. Note 3. Critical accounting judgements, estimates and assumptions (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A14
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Provision for impairment of receivables The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level ofprovision is assessed by taking into account the ageing of receivables, historical collection rates and specific knowledgeof the individual debtor’s financial position.
Estimation of useful lives of assets The Agency determines the estimated useful lives and related depreciation and amortisation charges for its property,plant and equipment. The useful lives could change significantly as a result of technical innovations or some otherevent. The depreciation and amortisation charge will increase where the useful lives are less than previously estimatedlives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Revaluation of non current assets In April 2013 a Building revaluation has been conducted by an independent external accredited valuer, Davis LangdonAustralia Pty Ltd. Method and significant assumptions underlying the valuation: The basis of the valuer’s methodology is the Depreciated Replacement Cost (DRC) of the asset which is calculated as follows: Replacement cost less cost to bring asset to current standards. The methodology applied by the valuer is a financial simulation lieu of ‘Market Value’ as these assets cannot be boughtand sold on the open market. A replacement cost is estimated by creating a cost plan (cost estimate) of the asset through the measurement of key quantities such as;
- Gross Floor Area (GFA)
- Number of floors
- Girth of the building
- Height of the building
- Number of lifts and staircases.
The model developed by the valuer creates an elemental cost plan using these quantities and the model includes multiple building types and is based on the valuer’s experience of cost managing construction contracts. The cost model is updated each year and tests are done to compare the model outputs on actual recent projects to ensure it produces a true representation of the cost of replacement. The costs are at Brisbane prices and published location indices are used to adjust the pricing to suit local market conditions. Live project costs from across the state are also assessed to inform current market changes that may influence the published factors.
The key assumption on the replacement cost is that the estimate is based on replacing the current function of the building with a building of the same form (size and shape). This assumption has a significant impact if an asset’s function changes.
The ‘Cost to Bring to Current Standards’ is the estimated cost of refurbishing the asset to bring it to current standards and a new condition. For each of the five condition ratings the estimate is based on professional opinion as well as having regard to historical project costs.
In assessing the cost to bring to current standard a condition rating is applied based upon the following information:
- Visual inspection of the asset - Asset condition data provided by the Department of Health - Verbal guidance from the asset manager - Previous reports and inspection photographs if available (to show the change in condition over time).
Note 3. Critical accounting judgements, estimates and assumptions (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A15
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
Condition Ratings
Category Condition Criteria
1 Very Good Condition Only normal maintenance required
2 Minor Defects Only Minor maintenance required
3 Maintenance required to return to accepted level of service
Significant maintenance required (up to 50% of capital replacement cost)
4 Requires Renewal Complete renewal of the internal fit out and engineering services required (up to 70% of capital replacement cost)
5 Asset Unserviceable Complete asset replacement required.
These condition ratings are linked to the cost to bring to current standards.
The valuer’s methodology in 2012-13 has changed from prior year revaluations of these assets undertaken for theDepartment of Health in that category 2 and category 3 condition ratings were significantly influenced by the age of the asset. In 2012-13, this condition criteria has been replaced with a standardised condition curve approach to more accurately reflect an asset’s condition through its life. The financial effect on depreciated replacement cost values from thischange in condition criteria has been modeled and has been assessed as immaterial (i.e. in the range of 1% and 2%).
The standard life of a health facility is generally 30 years and is adjusted for those assets in extreme climatic conditionswhich have historically shorter lives, or where assets such as residences generally have longer lives.
Estimates of remaining life are based on the assumption that the asset remains in its current function and will bemaintained.
No allowance has been provided for significant refurbishment works in the estimate of remaining life as any refurbishment should extend the life of the asset.
Buildings have been valued on the basis that there is no residual value. Note 4. Major services, activities and other events Major services Cape York Hospital and Health Service has five major departmental services. These reflect the Agency's services profileas articulated in the Cape York 2012-13 service agreement. The identity and purpose of each major service undertakenby the Agency during the reporting period is summarised as follows:
Clinical services
The Agency delivers primary health, non acute and sub acute care services through its facilities. The Agency alsosupports a wide range of services delivered by outreach teams, including visiting specialist services from other Hospital and Health Services (mainly Cairns) and non-government providers such as Apunipima Cape York Health CouncilLimited and the Royal Flying Doctors Service of Australia Limited.
Prevention, promotion, protection
The Agency aims to prevent illness or injury, promote and protect good health and well-being of the population andreduce the health status gap between the most and least advantaged in the community.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A16
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 4. Major services, activities and other events (continued) Residential and aged care facilities The Agency manages the following residential facilities: - Sunbird Cottage Residential Aged Care Facility (Cooktown Multi Purpose Health Service) - Weipa Residential Aged Care Facility (Weipa Integrated Health Service). Mental health facilities and services The Agency continuously delivers specialised mental health and alcohol and other drug treatment services as specifiedin the Cape York 2012-13 service agreement. Teaching, training and research The Agency provides teaching, training and research programs for which funding is identified in the Cape York 2012-13 service agreement. The four principles of sustainability, consistency, efficiency and collaboration underpin the provision of teaching(generally referred to as clinical education and training) and research within and across hospitals and health services. Major activities Administrative arrangements under National Health Reform Health reform
On 2 August 2011, Queensland, as a member of the Council of Australian Governments signed the National Health Reform Agreement, committing to major changes in the way that health services in Australia are funded and governed.These changes took effect from 1 July 2012 and include moving to a purchaser-provider model, with health service delivery to be purchased from legally independent hospital networks (statutory bodies to be known as Hospital andHealth Services (HHSs) in Queensland). Funding is provided to the Agency in accordance with service agreements.
System Manager role
Under the new arrangements, the role of Queensland Health’s corporate office transitioned to the Department of Health role and now purchases services from the Agencies under publicly available service agreements negotiatedbetween the two entities. Service agreements for 2012-13 have been set by the Director-General of Queensland Health.Department of Health is not involved in the day-to-day functioning of health services and has devolved responsibility forfrontline service delivery to the Agency unless there is a significant economic or similar benefit to maintaining a state-wide function. The new structure functionally commenced from 1 July 2012, in support of the new Agency arrangements.
Cape York Hospital and Health Service has implemented the new structure of the health service in 2012-13. This has resulted in a change in roles and responsibilities for many staff and a reduction in the number of staff required. Other events Opening balances Pursuant to section 4 of the transfer notice - Designation of Transfer or Other dealing (section 307(2) (a) of the Hospital and Health Services Act 2011), certain assets and liabilities were transferred from the Department of Health tothe Agency and are designated as a contribution by/distribution to owners of a wholly owned government entity and as such were accounted for as contributed equity.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A17
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 4. Major services, activities and other events (continued) The Department of Health retains legal ownership of all land and building assets. Control of these assets was transferred to the Agency, representing its right to use the asset, under the concurrent lease contained in the TransferNotice, signed by the Minister for Health on 18 June 2012. In accordance with the definition of control under AustralianAccounting Standards, the Agency recognised the value of these assets on its statement of financial position. The values transferred were the carrying value of the items recorded in the Department of Health financial statements at30 June 2012 and comprise the net assets received by the Agency as at 1 July 2012. Refer to note 31 for details ofassets and liabilities and amounts transferred. Voluntary separation payments Voluntary redundancies were offered to employees affected by the Agency's restructure under the Public ServiceCommission Directives 06/12 and 11/12. Any incentive payments or redundancy components of voluntary redundancycosts were paid by the Agency and reimbursed through the Consolidated Fund as a Department of Health grant.
2013$’000
Note 5. User charges and fees
Sale of goods and services 704Hospital fees 182
- - - 886
Note 6. Grants and other contributions
Commonwealth and State Governments - specific purpose recurrent grants 76,344Department of Health grant - depreciation funding 4,491General Government entities - grants 140Donations and gifts 14
- - - 80,989
Note 7. Other revenue
Interest 2Rent revenue 242Other 668 912 Note 8. Gains Gain on sale of property, plant and equipment - - - 3 Note 9. Employee expenses
Wages and salaries 446Employer superannuation contributions 34Annual leave expenses 17Employee related expenses (workcover, payroll tax) 10
Total employee expenses 507 At 30 June 2013, there was 1 full-time employee and 6 part-time employees (Board members).
2013
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A18
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
$’000Note 10. Health service employee expenses
Health service employees provided by the Department of Health 43,936The above expense includes $1,749,683 for voluntary redundancy payments. Number of employees: 368 The number of employees as at 30 June 2013 includes both full-time employees and part-time employees, measured on a full time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)). Refer to Note 2 (s) for more information. Note 11. Supplies and services
Consultants and contractors 3,418Electricity and other utilities 1,011Patient travel 4,370Other travel 2,140Freight 325Water 67Building services 331Computer services 337Motor vehicles - running costs 242Communications 757Repairs and maintenance 1,946Expenses relating to capital works 318Operating lease rentals 2,813Drugs and pharmaceutical supplies 2,254Clinical supplies and services 990Catering and domestic supplies 494Pathology 502Other 3,231
- - - 25,546
Note 12. Grants and subsidies
Home, community and rural health services 1,285Other 4,964
- - - 6,249
Note 13. Depreciation and amortisation
Buildings 3,744Plant and equipment 786
- - - 4,530
Note 14. Impairment losses
Impairment losses on receivables 92Bad debts written off 54
- - - 146
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A19
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
2013$’000
Note 15. Other expenses External audit fees 138Bank fees 1Insurance 328Inventory written off 203Losses from the disposal of non-current assets 28Special payments - donations/gifts 1Special payments - ex-gratia payments* 27Other legal costs 34Journals and subscriptions 8Advertising 18Interpreter fees 1Other 196
- - - 983*Ex-gratia payments are relocation costs paid to Health Service employees. Note 16. Cash and cash equivalents
Cash at bank and on hand 5,629 The operating bank account does not earn interest. Refer to note 25 for further information on financial instruments. Note 17. Trade and other receivables
Trade receivables 846 Payroll receivables 5 Less: Allowance for impairment of receivables (151)
- - - 700 GST input tax credits receivable 79 GST payable (45)
- - - 34 Grant receivables 2,244
- - - 2,978
Impairment of receivables: The Agency has recognised an expense of $54,000 in respect of impairment of receivables for the year ended 30 June 2013. Refer to note 25 for further information on financial instruments. Note 18. Inventories
Drugs and pharmaceutical supplies 240
Note 19. Other current assets Prepayments 31
Prepayments represent expenses paid in advance for goods and services to be received after 30 June 2013.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A20
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
2013$’000
Note 20. Property, plant and equipment
Land 7,671Total land – at fair value - - - 7,671 Buildings 129,162Less: Accumulated depreciation (42,918)Total buildings - at fair value - - - 86,244 Plant and equipment 8,318Less: Accumulated depreciation (4,006)Total plant and equipment – at amortised cost - - - 4,312 Capital works in progress 556Total capital works in progress – at cost - - - 556
Total property, plant and equipment - - - 98,783 Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Land Buildings Plant &
equipment Work in progress Total
$'000 $'000 $'000 $'000 $'000 Net assets received 1 July 2012 - 7,671 81,708 4,070 349 93,798Additions - - 114 1,065 527 1,706 Disposals - - - (37) - (37)Revaluation increments - - 7,846 - - 7,846 Transfers in/(out) - - 320 - (320) -Depreciation expense - - (3,744) (786) - (4,530)
Balance at 30 June 2013 - 7,671 86,244, 4,312 556 98,783
Valuations of land and buildings Land and buildings are measured at fair value in accordance with AASB 116 Property, Plant and Equipment and Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector. The land and buildings were last revaluated as at 30 June 2013 based on independent assessments by a member of the Australian Property Institute performed in April 2013. The Board does not believe that there has been a material movement in fair value since the revaluation date. Land Land was fair valued using the following methodology: In 2012-13, land was indexed using the appropriate indices sourced from the State Valuation Service. These indices are based on actual market movements for the relevant location and asset category. The revaluation program resulted in no change to the carrying amount of land. Buildings An independent revaluation of 80 per cent of the gross value of the building portfolio was performed during 2012-13. For buildings not subject to independent revaluation during 2012-13, the Department of Public Works Building Price Index was assessed as 0.5 per cent for the year and a Health Design Factor of nil was applied on all specialised buildings. The buildings valuations for 2012-13 resulted in a net increment to the Agency's building portfolio of $7,846,231. This is an increase of 10 per cent to the building portfolio as at 30 June 2013.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A21
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
2013$’000
Note 21. Trade and other payables Trade payables 314Accrued expenses 6,754
- - - 7,068Refer to note 25 for further information on financial instruments.
Note 22. Provisions
Restructuring The provision represents the estimated costs to change the management structure and other fundamentalreorganisations that have a material effect on the Agency. The provision has been recognised as the detailed restructuring plan has been completed by management and communicated to the public and those affected by theplans. The provision for restructure at 30 June 2013 contains the following elements: - Change Facilitator and Project Management - Accreditation preparedness (restructure impact) - Sick leave/fatigue related to restructure - Relocation costs for affected staff - Roles not matched within the restructure and continuing without voluntary redundancy - Counselling services. Movements in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below: Restructure: Carrying amount at the start of the year -Additional provisions recognised 292Carrying amount at the end of the year - - 292
Note 23. Accrued employee benefits
Salaries and wages accrued 26
Note 24. Asset revaluation surplus
Asset revaluation surplus - buildings 7,846 The asset revaluation surplus is used to recognise increments and decrements in the fair value of land and buildings.
Note 25. Financial instruments (a) Categorisation of financial instruments
The Agency has the following categories of financial assets and liabilities:
Category Note
Financial Assets
Cash and cash equivalents 16 5,629
Receivables 17 2,978
Total 8,607
Financial Liabilities
Payables 21 314
Total 314
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A22
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 25. Financial instruments (continued) (b) Financial risk management objectives
The Agency's activities expose it to a variety of financial risks namely credit risk and liquidity risk. The Agency usesdifferent methods to measure different types of risk to which it is exposed. These methods include ageing analysis for credit risk and cash flow monitoring.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board members('the Board'). These policies include identification and analysis of the risk exposure of the Agency and appropriateprocedures, controls and risk limits. Finance identifies and evaluates financial risks within the Agency's operating unitsand reports to the Board on a monthly basis.
Market risk
Foreign currency risk The Agency does not undertake any transaction denominated in foreign currency and is therefore not exposed toforeign currency risk through foreign exchange rate fluctuations.
Price risk The Agency is not exposed to any significant price risk.
Interest rate risk The Agency is not exposed to any significant interest rate risk. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Agency. The Agency has a strict code of credit, including obtaining Agency credit information, confirming referencesand setting appropriate credit limits. The Agency obtains guarantees where appropriate to mitigate credit risk. Themaximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financialstatements. The Agency does not hold any collateral. The Agency has not identified any credit risk exposures at 30 June 2013 that have not been included within theprovision for impairment. Credit risk exposure
Less than 30 days $’000
30-60 days $’000
61-90 days $’000
More than 90 days $’000
Receivables gross 2,850 208 2 69
Allowance for impairment (96) - - (55)
Total 2,754 208 2 14
Liquidity risk Vigilant liquidity risk management requires the Agency to maintain sufficient liquid assets (mainly cash and cashequivalents) and available overdraft facilities to be able to pay debts as and when they become due and payable.
The Agency manages liquidity risk by maintaining adequate cash reserves and available overdraft facilities and bycontinuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets andliabilities.
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A23
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 25. Financial instruments (continued) Liquidity risk (continued) Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts oftrade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current marketinterest rate that is available for similar financial instruments. Liquidity risk exposure
Less than 30 days $’000
30-60 days $’000
61-90 days $’000
More than 90 days $’000
Payables 314 - - -
Total 314 - - -
Note 26. Key management personnel disclosures
Key management personnel The following details for key management personnel include those positions that had the authority and responsibility forplanning, directing and controlling the major activities of the Agency, directly or indirectly, during the financial year. 1/ Board members The role of the Board is to provide strategic direction and effective governance over the Agency's affairs to ensure itdischarges its legislated responsibilities while regarding the interests of all stakeholders including Health serviceemployees, suppliers and local communities.
Name of current and former incumbents Position
Contract classification and appointment authority
Term of appointment
Robert (Bob) Michael McCarthy Chair S25 Hospital and Health Board Act 2011 18/05/13 to 17/05/14
Louise Michelle Pearce Acting Chair (former) S25 Hospital and Health Board Act 2011 5/10/12 to 17/05/13
Scott McCahon Chair (former - resigned 4/10/12) S25 Hospital and Health Board Act 2011 18/05/12 to 04/10/12
Louise Michelle Pearce Deputy Chair S25 Hospital and Health Board Act 2011 18/05/13 to 17/05/16
Louise Michelle Pearce Deputy Chair (former) S25 Hospital and Health Board Act 2011 29/06/12 to 4/10/12
Tracey Del Jia Member S23 Hospital and Health Board Act 2011 29/06/12 to 17/05/16 Associate Professor Dr Ruth Stewart Member S23 Hospital and Health Board Act 2011 29/06/12 to 17/05/16
Kevin Francis Quirk Member S23 Hospital and Health Board Act 2011 18/05/13 to 17/05/14
Darryl Hill Member S23 Hospital and Health Board Act 2011 29/06/12 to 17/05/16
Doreen Hart Member (resigned) S23 Hospital and Health Board Act 2011 18/05/13 to 18/05/13
Thomas Fairlane Hudson Member (former) S23 Hospital and Health Board Act 2011 29/06/12 to 17/05/13
Angela Jarkiewicz Member (former) S23 Hospital and Health Board Act 2011 29/06/12 to 17/05/13
Note 26. Key management personnel disclosures (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A24
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 2/ Other Key Management Personnel
Name and position Description Contract classification and
appointment authority
Appointment date
Health Service Chief Executive Susan Turner
Responsible for the overall management of Cape York Health through major functional areas to ensure the delivery of key government objectives in improving the health and well being of Cape York Peninsula population.
Contract - S33 Hospital & Health Boards Act 2011
1/07/12
Director Office of Rural and Remote Health Jill Newland
Responsible for supporting, monitoring, managing and implementing clinical practice processes within Rural and Remote Health. Provide leadership for the primary healthcare functions and provide advice on clinical governance when required.
MMOI2 Public Service Act 2008
1/10/12
Executive Director Performance Planning and Coordination Karen Jacobs
Responsible for managing all aspects of health service strategy development, integrated service planning, performance management systems and reporting, including analysis and advice on decision support system information for the organisation and contract management.
DSO2-1 Public Service Act 2008
10/06/13
Acting Chief Operating Officer Karen Jacobs
Responsible for the effective executive leadership and management of the Cape York Hospital and Health Service and the delivery of corporate services across the service. Lead organisational and service delivery planning and service wide change management initiatives.
DSO2-1 Public Service Act 2008
30/07/12 to 9/06/13
Chief Operating Officer Michael Lok
Responsible for the effective executive leadership and management of the Cape York Hospital and Health Service and the delivery of corporate services across the Service. Lead organisational and service delivery planning and Service wide change management initiatives.
S24/S70 Public Service Act 2008
1/07/12 to 29/07/12
Chief Financial Officer Rajesh Lal
Responsible for leading the finance function across the Cape York Hospital and Health Service, formulating financial strategies, developing annual budgets, reporting Hospital and Health Service performance and designing policies to guide the efficient, effective and economic use of resources.
A08 Public Service Act
2008
26/11/12
Acting Chief Financial Officer Danielle Hoins
Responsible for leading the finance function across the Cape York Hospital and Health Service, formulating financial strategies, developing annual budgets, reporting Hospital and Health Service performance and designing policies to guide the efficient, effective and economic use of resources.
AO8 Public Service Act 2008
1/07/12 to 31/12/12
Executive Director Workplace Services Julie Garry
Responsible for providing strategic leadership and advice in the efficient and effective management of Cape York Hospital and Health Service human resources and promote learning development.
AO8 Public Service Act 2008
10/06/13
Acting Director of People and Culture Julie Garry
Responsible for providing key leadership in developing organisation design and human resource strategies that will foster and enable increased organisational performance, continuous improvement and employee engagement.
AO8 Public Service Act 2008
12/11/12 to 9/06/13
Director of People and Culture Nicole Perriman
Responsible for providing key leadership in developing organisation design and human resource strategies that will foster and enable increased organisational performance, continuous improvement and employee engagement.
AO8 Public Service Act 2008
1/07/12 to 31/05/13
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A25
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 26. Key management personnel disclosures (continued)
Name and position Description Contract classification and appointment
authority
Appointment date
Executive Director Nursing and Midwifery Christopher Cliffe
Responsible for providing strategic leadership and advice in the efficient and effective management of Cape York Hospital and Health Service nursing and promote learning development.
NRG11 Public Service Act 2008
10/06/13
Acting District Director of Nursing Christopher Cliffe
Responsible for providing nursing leadership and governance to the Nursing Services of Cape York Hospital and Health Service and supporting the implementation of primary health care principles and practices.
NRG11 Public Service Act 2008
31/10/12 to 9/06/13
Acting District Director of Nursing Heather Moore
Responsible for providing nursing leadership and governance to the Nursing Services of Cape York Hospital and Health Service and supporting the implementation of primary health care principles and practices.
NRG10 Public Service Act 2008
1/07/12 to 31/10/12
Acting District Director of Nursing Brenda Close
Responsible for providing nursing leadership and governance to the Nursing Services of Cape York Hospital and Health Service and supporting the implementation of primary health care principles and practices.
NRG10 Public Service Act 2008
6/08/12 to 5/10/12
District Director of Nursing Mary Rose Robinson
Responsible for providing nursing leadership and governance to the nursing services of Cape York Hospital and Health Service and supporting the implementation of primary health care principles and practices.
NRG11 Public Service Act 2008
1/07/12
Executive Director Medical Services Anna Morgan
Provide strategic leadership and advice in the efficient and effective management of clinical services and medical staff across the Cape York Hospital and Health Service.
MMOI1 Public Service Act 2008
1/07/12
Executive Director Indigenous Health and Outreach Services Karl Briscoe
Responsible for directing, coordinating and leading the management of all outreach primary health care services within Cape York Hospital and Health Service.
AO7 Public Service Act 2008
10/06/13
Acting Director of Primary Health Care Karl Briscoe
Responsible for providing leadership and strategic management in the implementation of Primary Care frameworks with Queensland Health Care and related Indigenous Primary Health Care Programs.
AO7 Public Service Act 2008
25/10/12 to 9/06/13
Director of Primary Health Care Karen Jacobs
Responsible for providing leadership and strategic management in the implementation of primary care frameworks with Queensland Health Care and related Indigenous Primary Health Care Programs.
DS02-1 Public Service Act 2008
1/07/12 to 29/07/12
Principle Indigenous Health Coordinator Karl Briscoe
Responsible for coordinating the implementation of Aboriginal and Torres Strait Islander Health Policies within the Cape York Hospital and Health Service. Develop, strengthen and maintain a proactive partnership relationship arrangement with a range of key stakeholders.
AO7 Public Service Act 2008
1/07/12 to 24/10/12
Acting Director of Primary Health Care Louisa Salee
Responsible for providing leadership and strategic management in the implementation of Primary Care frameworks with Queensland Health Care and related Indigenous Primary Health Care Programs.
AO6 Public Service Act 2008
1/07/12 to 24/04/13
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A26
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Note 26. Key management personnel disclosures (continued)
Name and position Description Contract classification and
appointment authority
Appointment date
Program Director Hospital and Health Service Transition and Planning Donna Richmond
Responsible for leading and managing the design, development and implementation of the Transition and Service Transformation programs for Cape York Hospital and Health Service.
AO8 Public Service Act 2008
3/12/12
Program Director Transformation Rohan Harbert
Responsible for managing and facilitating the project development and implementation of the Cape York Hospital and Health Service Framework.
NRG7 Public Service Act 2008
1/07/12 to 21/04/13
Acting Program Director Transformation Chris Black
Responsible for managing and facilitating the project development and implementation of the Cape York Hospital and Health Service Framework.
AO6 Public Service Act 2008
2/10/12 to 17/02/13
Director of Mental Health and ATODS Alanah O'Brien
Responsible for leading and progressing strategic Mental Health and ATODS program development and integration within the health system in collaboration with external agencies and communities.
AO7 Public Service Act 2008
1/07/12 to 9/06/13
Manager Health Work Services Josslyn Tully
Responsible for managing all services delivered by Health Workers in Cape York Hospital and Health Service including the development, implementation, coordination, management and evaluation of Aboriginal and Torres Strait Islander Health Worker practices.
HW009 Public Service Act 2008
1/07/12
Board Secretary Kenneth Leigh
Responsible for providing strategic advice and governance support to the Hospital and Health Board, its Committees and the CEO of the Cape York Hospital and Health Service to fulfil their function under the Hospital and Health Board Act 2011.
AO8 - Public Service Act 2008
17/09/12
Remuneration policy for the Agency’s key management personnel is set by Queensland Public Service Commission as provided for under the Public Service Act 2008. The remuneration and other terms of employment for the key management personnel are specified in employment contracts. Remuneration packages for key management personnel comprise the following components:
- Short term employee benefits which include: - Base - consisting of base salary, allowances and leave entitlements expensed for the entire year or for that part
of the year during which the employee occupied the specified position. - Non-monetary benefits - consisting of provision of vehicle together with fringe benefits tax applicable to the
benefit.
- Long term employee benefits include amounts expensed in respect of long service leave.
- Post-employment benefits include amounts expensed in respect of employer superannuation obligations.
- Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination.
- Performance bonuses are not paid under the contracts in place.
- Total fixed remuneration is calculated on a 'total cost' basis and includes the base and non-monetary benefits, long term employee benefits and post-employment benefits.
Note 26. Key management personnel disclosures (continued) Board members remuneration
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A27
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
Name and position Short term
benefits Post employment
benefits $'000
Long term
benefits $'000
Termination benefits
$'000 Total $'000
Base $'000
Non monetary
$'000
Chair - Robert (Bob) Michael McCarthy 3 - - - - 3
Deputy Chair - Louise Michelle Pearce 43 9 4 - - 56
Chair (to 4/10/2012) - Scott McCahon 20 - 2 - - 22
Board Member - Tracey Del Jia 26 - 2 - - 28
Board Member - Ass Prof Dr Ruth Stewart 25 - - - - 25
Board Member - Kevin Francis Quirk 3 - - - - 3
Board Member - Darryl Hill 25 - - - - 25
Board Member (to 18/5/13)- Doreen Hart - - - - - -
Board Member (to 17/5/13) - Thomas Hudson 24 - - - - 24
Board Member (to 17/5/12) - Angela Jarkiewicz 24 - 2 - - 26
Key management personnel remuneration
Name and Position Short Term Benefits
Post employment
benefits $'000
Long Term
Benefits $'000
Termination benefits
$'000 Total $'000
Base $'000
Non monetary
$'000 Helath Service Chief Executive - Susan Turner (from 1/7/12 to 30/06/13)
228 10 21 - - 259
Director Office of Rural and Remote Health Jill Newland (from 1/10/12 to 30/06/13) 261 8 4 6 - 279
Executive Director Performance Planning and Coordination - Karen Jacobs (from 1/07/12 to 30/06/13)
104 9 12 - - 125
Chief Operating Officer - Michael Lok (from 1/7/12 to 29/7/12) 19 - 1 - - 20
Chief Financial Officer - Rajesh Lal (from 26/11/12 to 30/06/13) 55 1 7 - - 63
Acting Chief Financial Officer - Danielle Hoins (from 1/7/12 to 31/12/12) 49 - 5 - - 54
Executive Director Workplace Services - Julie Garry (from 12/11/12 to 30/06/13) 61 - 8 - - 69
Director of People and Culture - Nicole Perriman (from 1/7/12 to 31/5/13)
40 - 10 - 43 93
Executive Director Nursing and Midwifery - Christopher Cliffe (from 31/10/12 to 30/6/13)
83 9 10 - - 102
Acting District Director of Nursing - Heather Moore (from 1/07/12 to 31/10/12) 46 1 5 - - 52
Acting District Director of Nursing - Brenda Close (from 6/08/12 to 5/10/12) 26 6 3 - - 35
District Director of Nursing - Mary Rose Robinson (from 1/07/12 to 30/06/13) 83 1 13 - - 97
Note 26. Key management personnel disclosures (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A28
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Key management personnel remuneration (continued)
Name and Position Short Term Benefits Post
employment benefits
$'000
Long Term
Benefits $'000
Termination benefits
$'000 Total $'000
Base $'000
Non monetary
$'000 Executive Director Medical Services - Anna Morgan (from 1/7/12 to 30/6/13) 346 8 27 - - 381
Executive Director Indigenous Health and Outreach Services - Karl Briscoe (from 1/07/12 to 30/6/13)
99 - 12 - - 111
Acting Director of Primary Healthcare - Louisa Salee (from 1/07/12 to 24/04/13) 60 - 9 - - 69
Program Director HHS Transition and Planning Donna Richmond (from 3/12/12 to 30/6/13)
60 - 8 - - 68
Program Director Transformation - Rohan Harbert (from 1/7/12 to 21/4/13) 83 8 11 - 102
Acting Program Director Transformation - Chris Black (from 2/10/12 to 17/2/13) 38 9 4 - - 51
Director of Mental Health and ATODS - Alanah O'Brien (from 1/7/12 to 9/6/13) 32 8 12 - 60 112
Manager Health Work Services - Josslyn Tully (from 1/7/12 to 30/6/13) 93 - 11 - - 104
Board Secretary - Kenneth Leigh (from 17/09/12 to 30/6/13) 70 4 10 - - 84
Related party transactions Related party transactions are set out in note 30.
Note 27. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by the Queensland Audit Office, the auditor of the Agency, and unrelated firms:
2013Audit services – Queensland Audit Office $’000Audit of the financial statements 138
Note 28. Contingent liabilities As 30 June 2013, the Agency has no claims lodged with the Queensland Government Insurance Fund (QGIF) whichcould result in litigation or payment of claims. The Agency is responsible for claims from 1 July 2012 with pre 1 July2012 claims remaining the responsibility of the Department of Health. Currently the Agency has two claims underway for common law. The first is for $1.5 million and the second is for $2 million. These are estimates and are at the maximum level of cost. It is not possible to give a clear indication of the final financial outcome due to the legal nature of those claims and the set process that will follow.
Note 29. Commitments
As at 30 June 2013 the Agency has not entered into any non-cancellable operating leases or other forms of commitments. All contracts entered into prior 1 July 2013 for the 2013-14 financial year will be grant funded in 2013-14.
Note 30. Related party transactions
Key management personnel Disclosures relating to key management personnel are set out in note 26. Note 30. Related party transactions (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A29
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13 Transactions with related parties In addition, in the ordinary course of business conducted under normal terms and conditions, Cape York Hospital andHealth Service has had dealings with the following Board members and Board member related entities: (a) Mr Scott McMahon was, during his period as Board chair (18/05/2012 to 4/10/2012), a director and shareholder in McPharm Pty Ltd A.C.N. 144 703 659. (b) Mr Thomas Hudson was, during his period as a Board member (29/06/2012 to 17/05/2013), a director of Apunipima Cape York Health Council Aboriginal Corporation and Apunipima Cape York Health Council Limited A.C.N. 162 571235. (c) Ms Angela Jarkiewicz was, during her period as a Board member (29/06/2012 to 17/05/2013), the Regional Director Far North, Queensland Section, Royal Flying Doctor Service of Australia Limited A.C.N. 004 213 067. (d) Dr Ruth Stewart, during her period as a Board member (29/06/2012 to present), is Associate Professor of Rural Medicine and director for the Rural Clinic Training Scheme for James Cook University. Receivable from and payable to related parties Other than balances held with the Department of Health and other hospital and health services identified during the ordinary course of business, there were no trade receivables from or trade payables to related parties at the reportingdate. Loans to/from related parties There were no loans to or from related parties at the reporting date.
Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates. Parent entities Cape York Hospital and Health Service is controlled by Department of Health the parent entity and the State of Queensland which is the ultimate parent entity. Note 31. Transfer of assets and liabilities from the Department of Health
The fair values of assets and liabilities transferred from the Department of Health on 1 July 2012 were as follows:
2013 $'000
Cash and cash equivalents 1 Trade receivables 2,286Inventories 442Other asset 1 Property, plant and equipment 93,797 Creditors (2,730)Net assets acquired 93,797Trust - net asset 35
Acquisition-date fair value of the total consideration transferred 93,832
Note 32. Transactions with owners as owners
Equity injections consist of cash funding/reimbursement by the Department of Health for the capital works program expenditure undertaken by the Agency. Note 32. Transactions with owners as owners (continued)
Attachment 1 – Cape York Hospital and Health Service Annual Report 2012-2013, Financial Summary A30
Cape York Hospital and Health Service Notes to and forming part of the financial statements 2012-13
2013$’000
Equity injections Non appropriated equity injections 1,620 Non appropriated equity asset transfers 575Cash received 1 July 2012 35Total equity injections 2,230
Equity withdrawals Depreciation funding net of depreciation clawback component (4,491)Total equity withdrawals (4,491)
Note 33. Trust transactions and balances Cape York Hospital and Health Services acts in a fiduciary trust capacity in relation to patient trust accounts. - Cape York Hospital and Health Service - Weipa Hospital Patient Trust - Balance 30/06/13: $1,955.99 - Cape York Hospital and Health Service - Cooktown Hospital Patient Trust - Balance 30/06/13: $2,816.70
Receipts Patients trust receipts 9 Total receipts - - - 9
Payments Patient trust related payments (7)Total payments - - - (7)
Note 34. Economic dependency The Agency is dependent upon the ongoing receipt of Commonwealth and State Government grants. At the date of this report management has no reason to believe that this financial support will not continue.
Note 35. Events after the reporting period
No matter or circumstance has arisen since 30 June 2013 that has significantly affected, or may significantly affect theAgency's operations, the results of those operations, or the Agency's state of affairs in future financial years.
Note 36. Reconciliation of surplus to net cash from operating activities
Operating surplus 893
Depreciation and amortisation 4,530
Write off of assets 37
Net loss/(gain) on sale of non current assets (3)
Change in assets and liabilities
Dec/(inc) trade and other receivables (7,514)
Dec/(inc) inventories (240)
Dec/(inc) prepayments (31)
Inc/(dec) trade and other payables 7,430
Net cash provided from operating activities 5,102
