[email protected] 20160902 155820 Repo… · Appointed: November 1996 Memberships: Finance, Project Control Group. Meetings Attended 15/22 Trevor Adams Funeral Celebrant Appointed:

1

Contents Health Service Profile 2

Service Directory 3

History 4

Board and Executive Management 5‐6

Organisational Structure 7

President and CEO Report 8‐9

Director of Clinical Services Report 10

Director Corporate Services Report 11

ICT 11

Health & Safety Performance Indicators 12

Board Presidents 13

Life Governors 13

Donations 14

Attestations 14

Occupational Violence 17

Strategic Planning 18‐19

Statement of Priorities 20‐22

Consultancy Details 24

Workforce Statistics 24

Staff 25‐26

Activity Data 27

Disclosure Index 28

Additional Information 29

Appendix

Appendix I Annual Financial Statements

CARING

ACCOUNTABILITY

RESPECT

EXCELLENCE

Report of Operations

Our Vision Kerang District Health seeks to improve the health and wellbeing of the community.

Our Values

We will be person centered, show compassion and

empathy.

We will be transparent, trustworthy and responsible

for our actions.

We will be dedicated to every person, every time.

c a r e

We will embrace and be considerate of the differences

between all people.

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Introduction This Annual Report and Report of Operations details the activities and achievements of Kerang District Health for the year ended 30 June 2016. The Report is required under the provisions of the Financial Management Act 1994. Additional requirements are contained in Standing Directions of the Minister for Finance and Financial Reporting Directions issued by the Department of Treasury and Finance.

Location & Contact Details Hospital 13‐15 Burgoyne Street, KERANG, 3579. Postal Address: PO Box 179, KERANG, 3579. Email: [email protected] Website: www.kerangdistricthealth.com.au Phone: 03 5450 9200 Fax: 03 5450 9209

Glenarm 13 Burgoyne Street, KERANG, 3579. Phone: 03 5450 9278 Fax: 03 5450 9220

WD Thomas Activity Centre 15 Burgoyne Street, KERANG, 3579. Phone: 03 5450 9284 Fax: 03 5450 9678

District Nursing Service 13 Burgoyne Street, KERANG, 3579. Phone: 03 5450 9292 Fax: 03 5450 9289

Responsible Ministers The Honourable Jill Hennessy MP, Minster for Health Minister for Ambulance Services Martin Foley MP, Minister for Mental Health Minister for Housing, Disability and Ageing

Jenny Mikakos MLC, Minister for Families and Children

The Hon John Eren MP, Minister for Sport

Profile Established 3 September 1954

Registered Beds 20 Acute 30 Residential Aged Care

Accreditation Status Accredited with the Australian Council on Healthcare Standards (ACHS) until November 2017 Accredited with The Australian Aged Care Quality Agency until March 2018

Bankers National Australia Bank

Insurers Victorian Managed Insurance Agency (VMIA)

Auditor Auditor General Victoria – Agent – Richmond Sinnott & Delahunty, Bendigo.

Internal Auditor & Accountants Accounting and Auditing Solutions Bendigo (AASB), Bendigo. Solicitors Basile & Co., Kerang Workplace Legal Memberships The Victorian Healthcare Association The Victorian Hospitals’ Industrial Association Leading Age Services Australia

Responsible Bodies Declaration In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Kerang District Health for the year ending 30 June 2016.

Simon Hall, Board Member, Kerang, 25 July 2016

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Service Directory Visiting Medical Officers Local General Practitioners Dr. R. Banskota Dr. N. Darko Dr. D. Del Rosario Dr. A. Singh Dr. M. Tufail Dr. H. Van Rensburg Dr. G. Wood Visiting Surgeons General Surgery Mr. P. Modak

Obstetrics and Gynaecology Dr. M. Jalland Dr. G. Dennerstein

Ophthalmology Dr. A. Gibson

Urology Dr. S. Lindsay

Orthopaedics Mr. H. Williams

Dental Dr. G. Gin Dr. S Amiri

Physician Dr. J. Gorey

Oncology Dr. M. Warren

Geriatrician Dr. J. Eapen

Urgent Care Centre – 24 hours Glenarm – 30 Residential Aged Care Beds Transitional Care Program (2 inpatient beds, 1 community bed)

Aged Care Assessments – Dr. J. Eapen Community/Allied Health Services Pathology – St. John of God Pathology Radiology – Bendigo Radiology Primary Care and Community Services including:

District Nursing

Hospital in the Home

Health Promotion

Domiciliary Midwifery

Palliative Care

Centre Based Planned Activity Groups

Men’s Shed

Mobile Planned Activity Group

Adult Exercise Program

Welfare

Physiotherapy

Occupational Therapy

Community Garden

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History The Kerang & District Hospital building in Burgoyne Street, Kerang was officially opened on the 21st September 1954, by His Excellency the Governor of Victoria Sir Dallas Brooks. The two storey Hospital was built as a 46 bed acute hospital providing medical, surgical, obstetric, and accident & emergency services. In 1974 the Board of Management launched a major fundraising appeal to build a twenty bed nursing home adjacent to the hospital and after several years of fundraising, His Excellency Sir Henry Winneke, Governor of Victoria officially opened “Glenarm” on 26 April 1979. In 1979, a day activity centre was established in Nolan Street, in a building owned by the Catholic Church and day activity services operated from this site until May 1991. During 1990/91 completion and occupation of a purpose built day activity centre was realised. The building was named the W D Thomas Day Centre in honour of a former Board Member Mr Des Thomas. The last 25 years has seen the introduction of services such as; pathology, radiology, welfare, physiotherapy and district nursing and health promotion. The completion of a Master Plan in November 1991 and acceptance of concept plans developed from this process formed the basis of future strategic planning for Kerang & District Hospital. Stage one of the re‐development in 1993 saw the addition of ten beds to “Glenarm”, four being allocated by the Commonwealth Government and six being relocated from the Hospital. Stage two involved the relocation of all beds and services from the first floor of the hospital building to the ground floor and this work was completed in 1992 with the building of a new operating theatre. During the project the physiotherapy service was relocated from the main hospital building to the nurse’s home. Stage three in 1993 saw a refurbishment of the midwifery area and the creation of a conference room on the first floor.

In late 1999 after several years of discussions the Gannawarra Neighbourhood House in Kerang and Cohuna became part of Kerang & District Hospital. In April 2002 two shops were purchased in Fitzroy Street. One to be used by the Kerang & District Hospital Ladies Auxiliary for their Opportunity Shop and the other to be used by the District Nursing Service and Health Promotion. The District Nursing Centre was officially opened by Mr Peter Walsh, State Member of Parliament for Swan Hill, in October 2003. On 18 June 2002 the Governor in Council amended Schedule 1 of the Health Services Act to amend the name of Kerang & District Hospital to Kerang District Health. Although there were no major changes made to services offered at Kerang, the Board of Management believed that the organisation offers much more than hospital services to the community. In August 2005 work was completed on a Day Surgery Recovery Room, built adjacent to Theatre at a cost of $372,322.00 Also in August 2005 the Department of Human Services announced that it would fund the completion of a Capital Master Plan for Kerang District Health. The Capital Master Planning process was completed in June 2010. In May 2011 the State and Federal Governments announced combined capital funding of $36.25 million for the redevelopment of acute and aged care facilities. The first stage of the building program, the “Early Works” commenced in June 2012 and was completed in June 2013. The second stage of the building program, the “Main Works” commenced in July 2013 and is expected to be completed mid‐2016. In April 2016 hospital patients moved into the refurbished acute ward and Glenarm residents moved into the new Glenarm building.

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Board of Management

Simon Hall Primary Producer Appointed: November 1993 Memberships: Executive, Audit, Finance, Management Quality & Risk, Medical & Dental Appointments, Project Control Group. Meetings Attended 21/22

John Ginnivan Environmental Consultant Appointed: July 2015 Memberships: Finance. Meetings Attended 21/22

Gerard Hastie Plumber Appointed: November 2003 Memberships: Finance Meetings Attended 16/22

Kylie Liebmann Scientist In Charge Appointed: July 2015 Memberships: Management Quality & Risk. Meetings Attended 18/22

Lorraine Morris Primary Producer Appointed: November 1996 Memberships: Management Quality & Risk. Meetings Attended 17/22

Ken Jenkins Managing Editor Appointed: November 2003 Memberships: Executive, Management Quality & Risk, Project Control Group. Meetings Attended 20/22

Laurie Gray Retired Baker Appointed: November 1996 Memberships: Finance, Project Control Group. Meetings Attended 15/22

Trevor Adams Funeral Celebrant Appointed: November 1996 Memberships: Executive, Audit & Finance. Meetings Attended 17/22

Kyra Laughlin Primary School Teacher Appointed: November 2002 Memberships: Executive. Meetings Attended 14/22

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Director of Clinical Services Chloe Keogh

Chloe commenced her role as Director of Clinical Services in 2015. She has responsibility for Acute

Nursing, Residential Aged Care, District Nursing, Day Activity Centre, and Community and Allied Health

Services.

Executive Management

Chief Executive Officer Robert Jarman Robert is responsible to the Board of Management for strategic leadership and management. He is responsible for implementing policy and direction as determined by the Board of Management. Robert has served as Chief Executive Officer since December 2001 and has many years’ experience as a Chief Executive Officer within the Public Health Sector in rural Australia.

Director of Medical Services Dr Paul Francis

Dr. Francis has been Director of Medical Services at Kerang District Health since 2002. Previously he

worked as a specialist anaesthetist and was Director of Medical Services at Echuca Regional Health. He has many years of experience in medical administration.

Paul finished with KDH in November 2015.

Director Of Corporate Services Peter Jones Peter is responsible for the management of Corporate Services including Administration, Payroll, Information Technology, Catering & Domestic Services, Maintenance, External Contractors Procurement, Risk Management and OHS. Peter has extensive experience as an Executive Officer within the Public Health Sector in Victoria.

Director of Medical Services Dr Craig Winter Craig started with KDH in November 2015 is responsible for ensuring visiting medical officers are credentialed and have the appropriate experience for the privileges they have applied for at KDHS. This position provides support, advice and guidance for clinical risk and medication management.

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President and Chief Executive Officer Report We have much pleasure in providing this President and Chief Executive Officer’s report, the organisation’s 65th for the year ending 30 June 2016. Capital Redevelopment In last year’s report, reference was made to the commencement of the Main Works Stage of the capital redevelopment by Nicholson Construction valued at $20.53M. Following the completion of the new acute hospital in April 2016, acute patients relocated from the new Glenarm Nursing Home which had been used as a temporary hospital since June 2015 into the new hospital and this allowed Glenarm residents to relocate to their new home. The new entry road, carpark and new canopy which is currently under construction is due for completion in August 2016. The final stages of the project will result in the refurbishment of Administration on the first floor. This work is not expected to commence until later in 2016. KDH Strategic Plan 2016/18 In the later part of 2015 the Board of Management and Executive Officers and Staff commenced work on a new Strategic Plan for Kerang District Health for 2016/18. The planning process involved meetings with key stakeholders, local community groups and staff provided Kerang District Health with a new Vision, new Values and four Strategic Objectives; Our People, Service Provision & Partnerships, Leadership & Governance and Infrastructure. Accreditation Although no major accreditation surveys have been carried out at Kerang District Health during 2015/16 there remains an ongoing need for health services to continuously improve how we provide our services. Our Partnering with Consumers Committee is only in its infancy yet their contribution and feedback about Kerang District Health on behalf of the community is well received. In September 2014 an organisation wide accreditation survey was carried out against the new National Safety and Quality Health Service Standards. Kerang District Health complied with all 10 Standards and recommendations were identified in consumer participation and medication safety relating to consumer participation. Their recommendations have been addressed and are being reported as part of the periodic review to be submitted in September 2016. Our next organisation wide accreditation survey will be carried out in June 2017. In December 2014, the Australian Aged Care Quality Agency carried out a re‐accreditation audit of “Glenarm”, our residential aged care home. To meet the requirements of the audit, “Glenarm” had to comply with all 44 expected outcomes across four Standards. No major recommendations were received. In May 2016 the Agency carried out an unannounced support visit of “Glenarm” and no major recommendations were made. The current accreditation for “Glenarm” expires in March 2018.

On behalf of the Board of Management we would like to express our appreciation of the valuable contribution of management and staff in contributing to the quality improvement process at Kerang District Health and the work of both Yvonne Fabry and Karen Transton our Quality Improvement Co‐coordinator’s. We would also like to acknowledge the contribution of Wendy Vanderheiden our Supervisor Catering & Domestic Services and her staff in meeting the requirements of the Food Safety Audit and Cleaning Audit. Building & Equipment Program As in previous years, the Board of Management is committed to replacing and maintaining buildings, plant and equipment at Kerang District Health and as part of the capital redevelopment at Kerang District Health, buildings, plant and equipment have been upgraded and replaced where necessary. Donations & Bequests As in previous years, Kerang District Health continues to receive very valuable financial support from residents and service clubs from the local community and surrounding district. In 2015/16 $303,085 was received in donations and bequests with major contributions received from Kerang District Health Ladies Auxiliary $79,000, Kerang Murray to Moyne Committee $17,000, Kerang Masonic Lodge $7,000 for nursing scholarships, Dodgshun Medlin $6,000, Kerang Turf Club $6,000, Murrabit Lions Club $1750, Fishers IGA $1,267, Mr Franklin Cross, Mr Allan McCallum and Mr A Mutch. A full list of donors appears later in this report. Ladies Auxiliary The Ladies Auxiliary under the chairmanship of Mrs Wilma Ellis continue their loyal support to the health service and their donation of $79,000 to the Board of Management in December 2015 confirms their dedication and commitment to improving facilities for patients and residents at Kerang District Health. The Rita Hall Opportunity Shop in Fitzroy Street remains their main source of income. Volunteers A health care organisation such as Kerang District Health cannot function without the dedication, support and commitment it receives from its many volunteers. Volunteers play a valuable role in the day to day operations of our health service in areas such as “Glenarm” our residential aged care home, the WD Thomas Activity Centre and the Men’s Shed. Medical Officers In August 2015 Dr Sukhminder Kaur our only GP Obstetrician left Kerang and unfortunately her resignation resulted in the cessation of birthing services at Kerang District Health. Also in August we welcomed Dr Abhishek Singh and Dr Muhammad Tufail to Kerang and both General Practitioners work out of the Fitzroy Street Medical Clinic.

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Kerang is currently served by the following Medical Officers who provide vital medical, urgent care and anaesthetic services to our local community 24 hours a day, 7 days a week and their dedication and commitment to both the health service and the community cannot be under‐estimated; Dr Graeme Wood, Dr Harry van Rensburg, Dr Reshma Banskota, Dr Divina Del Rosario, Dr Nii Darko, Dr Abishek Singh and Dr Muhammad Tufail. After many years of committed and loyal service to Kerang District Health Dr Paul Francis retired from his role as our Director of Medical Services in November 2015. We wish Paul all the best in his retirement. In January 2016 Dr Craig Winter was appointed to replace Dr Francis. Dr Winter currently fills this role in a number of small rural health services in Victoria. Department Heads & Staff An organisation such as Kerang District Health with an operating budget of just over $12M, a major capital redevelopment and 180 staff cannot function without the dedication and contribution of its Executive Managers, Department Heads and Staff. We would like to take this opportunity in thanking both Dr Paul Francis and Dr Craig Winter in their roles as Director of Medical Services, Mrs Chloe Keogh, Director of Clinical Services, Mr Peter Jones, Director Corporate Services, Department Heads and Staff for their dedication and valuable contribution during 2015/16. During the year the following staff members received service badges at the annual general meeting in November 2015; Jacqueline Chester 10 years

Monica Heritage Judy McClelland Gregory Price Lesley Roberts

Breanna Wilson Annette Ritchie 15 years Debbie O’Brien 20 years Nola Robinson Tania Moffat 25 years Michelle Wilson 30 years Rosemary Laughlin 35 years Julie Steains 40 years

Congratulations also to the following nursing staff who received a Kerang Masonic Lodge Nursing Scholarship for 2015; Sue Gray Lesley Stacey Jenny Tanner Board of Management On 1 July 2015 Mr Laurie Gray, Mr Gerard Hastie, Mrs Kyra Laughlin and Ms Kylie Liebmann were re‐appointed to the Board of Management for a further one year term. Mr John Ginnivan was also appointed. Other remaining Board Members are Mr Simon Hall, Mr Ken Jenkins and Mrs Lorraine Morris. The contribution of Board Members needs to be acknowledged as they voluntarily attend board meetings, sub‐committee meetings, conferences and workshops and represent the health service at various industry and

community meetings, meetings with the Department of Health and Human Services and both Local and Commonwealth Government. In addition, they contribute to the development of health service by providing policy and strategic direction. We thank them for their valuable contribution.

President Chief Executive Officer Simon Hall Robert Jarman

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Director of Clinical Services This has been an enormous year of organisational change, with all services moving into their new facilities at various times during the year. Staff, patients, residents and community members have taken some adjusting to the new areas. It was terrific to be able to open the hospital up on Anzac Day for the public to have a walk through these new areas. EDUCATION An educated workforce is very important at KDH. Staff attend online mandatory education, as well as off campus education through a variety of different providers. We have also rolled out of the “Take a Stand” against violence training run by Northern District Community Health to all our staff at their annual Professional Development Day. The clinical placement program at Kerang District Health offers a variety of placements for nursing, biomedical, medical and health support staff, including work experience placement for high school age students. The experience and opportunities students describe gives them the chance to experience healthcare in a rural setting, which has its own unique issues. ABORIGINAL LIAISON Advance Care Planning, and End of Life Wishes has been a focus for our Liaison officer during the year, as well as the reconciliation walk, and some designs for a Koori garden to be landscaped as part of our redevelopment project. ACUTE WARD Our Maternity Care throughout the year has been antenatal shared care with obstetricians who were comfortable with this model of care, and some postnatal and Domiciliary Midwifery Care after women go home with their babies. We continue with our collaborative service with Swan Hill District Health and staff maintain their annual competencies in this area. The Acute ward has relocated into their redesigned ward. Oncology continues to run three days a week with visiting oncologist team from Bendigo Health visiting fortnightly. The Transitional Care Program has been busy over the year, with a high percentage of our clients transitioning back into their homes following this program. DISTRICT SERVICES Men’s Shed Their existing shed extensions are slowly taking shape, and will conclude in the near future as an additional shed bay size additional to their current space. The men have continued with their many and varied interests and programs. A focus during the last year has been on men’s mental health with a successful breakfast run with local tradespeople, and also 4 of the men, and the staff attending a Mental Health First Aid course run by Northern District Community Health.

WDTAC Exercise classes have continued to steadily increase, with people taking advantage of the strength based training and individual programs. Day Activity and Mobile Activity groups have continued to run, with some very successful annual events as big draw cards, including the biggest Morning Tea, Melbourne Cup and Christmas Lunch. District Nursing Our district nurses have had a busy year. Their move into the Allied Health building was very smooth, and they have settled well into this area, continuing with their afternoon clinic from 1pm. Whilst the area is smaller than what they had in the Fitzroy St office, the space is ergonomically designed. Cancer Support is a new program that Kerang District Health have started running this year, offering support to people touched by cancer within the community, this may include cancer survivorship, or End Stage Wishes conversations, or referral to support agencies. Referral is through your health professional, your GP or self‐referral through the District Nurses office. THEATRE Whilst we have had a number of changes within our surgeon and anaesthetic team, we have continued to maintain theatre days consistently at around 7 per month, with the support of visiting anaesthetist Dr Tony McCarthy working opposite lists to Dr Graeme Wood. GLENARM The residents settled into their new facilities, and are enjoying the opportunity to go out into the various garden areas attached to their new wing. The open living space is well favoured by the residents and we are so pleased that they are taking the opportunity to maintain that sense of community by coming together for various activities in this area. I would like to take the time to thank Dr Paul Francis who was our Director of Medical Services for many years, and to acknowledge the support and service Paul provided the organisation over this time. Thank you also to Dr Craig Winter, our new Director of Medical Services and all the KDH VMO’s for their work and dedication throughout the year. Our visiting specialists and surgeons have undergone considerable upheaval with changed facilities and consulting rooms, and I thank them for their patience and understanding, and for the service they provide to our community. The staff have done a fantastic job throughout the year with the various changes and renovations going on, always maintaining a high standard of care. Finally, to our very generous community, Ladies Auxiliary and other volunteers, this is your community, and it is through your support that you make our hospital the great facility that it is, and we are very grateful to you for your donations, volunteering and fundraising. Chloe Keogh Director of Clinical Services

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Corporate Services Report Building Project In April 2016 hospital patients moved into the refurbished acute ward and aged care residents moved into the new Glenarm. Administration staff moved back up to their first floor offices. This has brought some stability for the workforce after several years of building works. I would like to thank all of our staff for their cooperation and patience for the duration of the project which is currently expected to be finalised in July when the carpark works are completed. Catering and Domestic Services The annual Food Safety Audit was conducted in February 2016 and the auditor again found Kerang District Health’s food services to be excellent. Cleaning audits conducted throughout the year were all well above minimum standards. Appreciation is extended to all of the Catering and Domestic Services staff members and Supervisor Wendy vanderHeiden for achieving these results for another year. Occupational Health and Safety The KDH Occupational Health and Safety Committee has met throughout the year under the guidance of new OHS Officer Catherine Trewin who commenced in the position in October 2015. The Committee focused on monitoring the environment and safety of staff, patients, residents, clients and visitors. Of the sixty‐six (66) staff related incidents, there were no serious incidents reported for the year, and there was only one (1) WorkCover claim made during the year. The Committee also monitored and reviewed Departmental Safety Inspections, Dangerous Goods and Hazardous Substances. In June 2016 a WorkSafe inspector visited KDH as part of WorkSafe Victoria’s “Hazards in Healthcare Project”. The inspector reviewed systems in place to manage (a) Occupational Violence and Aggression, and (b) Manual Handling, and found that these systems met WorkSafe requirements. There were no recommendations arising out the visit. Maintenance Maintenance Officer Brian Alexander has managed the ongoing maintenance requirements of the organisation with other maintenance staff members along with liaising with the building contractors. A new maintenance trainee Lachlan Champion commenced a twelve month traineeship in January. Administration Angela Teasdale and Rhiannon Greenwood joined the administration staff during the year while Rosie Laughlin resigned from her reception position after many years, but remains on the staff in another part‐time role.

Conclusion Finally I would like to thank all staff and departmental managers for their contribution over another busy year. With the end of the building project in sight we are all looking forward to a return to some normality over the next twelve months. Peter Jones Director Corporate Services

Information and Communication Technology (ICT) The total ICT expenditure incurred during 2015/2016 is $686,731 (Exc. GST) with the details shown below.

Business As Usual (BAU) ICT expenditure

Non‐Business As Usual (non‐BAU) ICT expenditure

Operational Expenditure (excluding GST)

Capital expenditure (excluding GST)

$686,731 Nil $686,731 Nil

$686,731 Nil $686,731 Nil

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Health and Safety Performance Indicators

Environmental Performance Indicators

Energy & Resource Usage

2012-13 2013-14 2014-15 2015-16 Variation

Gas Litres 58,903 41,078 44,357 43,002 3%

Cost $46,651 $38,909 $30,773 $19,257 37%

Electricity Kwh 781,440 840,578 919,204 1,210,811 32%

Cost $139,964 $132,381 $135,747 $167,283 23%

Water Kilolitres 9,449 6,155 10,456 10,495 1%

Cost $23,116 $21,715 $25,518 $24,334 5%

Indicator Details 2015-2016 2014-2015 2013-2014

No. of WorkCover Claims Claims made during year 1 1 Nil

WorkCover Premium Premium Paid $116,527 $170,580 $150,941

KDH Premium Rate 1.4884% 2.1117% 1.8411%

Weighted Industry Rate 1.1830% 1.1710% 1.2250%

Performance Rating compared with industry

% better or (worse) than industry rate

(25.81%) (80.33%) (59.4%)

KDH 3 Year Performance Rating

1.258163% 1.803308% 1.594908%

No. OHS Incidents Staff Incidents per VHIMS 66 32 36

No. Lost Time Claims 1 1 0

Hazards/Incidents per 100 FTE Employees

0.02 0.03 0.03

Lost Time Standard Claims per 100 FTE Employees

1.05 1.08 0

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Past Board Presidents

YEAR NAME YEAR NAME YEAR NAME 46‐50 Mr H F Robinson

50‐55 Mr J M McKee

55‐57 Mr C P Lang

57‐59 Mr D W Hawthorne

59‐61 Mr C H Collins

61‐63 Mr A J Morton

63‐66 Mr W D Thomas

66‐68 MR J W Muir

68‐70 Mr I E Clempson

70‐72 Mrs R J Howcroft

72‐74 Mr W P Fraser

74‐76 Mr D H H Jones

76‐78 Mr C P Lang

78‐80 Mr M N Willoughby

80‐82 Mr W J Crosbie

82‐84 Mr W J Kennedy

84‐86 Mr I Clempson

86‐88 Mr W P Fraser

88‐90 Mr J W Muir

90‐92 Mrs E J Westland

92‐94 Mr W T Wood

94‐96 Mrs H Mortlock

96‐98 Mr S M Hall

98‐99 Mr D Spinks

99‐01 Mr L Jenkins

01‐03 Mr L Gray

03‐05 Mr S M Hall

05‐07 Mr K Jenkins

07‐09 Mrs K Laughlin

09‐11 Mr G Hastie

11‐13 Mr T Adams

13‐15 Mr K Jenkins

15‐17 Mr S Hall

Life Governors

Adams, Mr T

Anderson, Mr R H

Archard, Mrs H

Argyle, Mr H S

Batchelor, Mr W

Baulch, Mr B

Baulch, Mr L W

Boatman, Mr T

Bott, Mrs B

Boyd, Mr G H

Brady, Mrs E J

Brown, Mrs L M

Burgess, Mrs E M

Chalmers, Mr H M

Cockroft, Mrs F S

Coxon, Miss H

Crosbie, Mrs F

Den,T Mrs A

Dowel, Mrs H E

Dunstan, Mrs J

Ellis, Mrs C

English, Mrs J W

Farley, Mr K B

Farley, Mr M

Farley, Mr S P

Farley, Mrs K B

Farrant, C H

Fitzpatrick, Mrs D

Frankish, Mr L

Franzini, Mr K

Freeman, Mr K E

Freeman, Mrs K E

Gillies, Mr W

Gitsham, Mr R

Hall, Mr G L

Harrison, Mr C J

Harrison, Mrs C J

Harrison, Miss F B

Harrison, Mr J C

Harrison, Mr K H

Harrison, Mrs K H

Harrison, Mr N W

Harrison, Mrs N W

Hawthorne, Mrs D W

Hawthorne, Mr M M

Hawthorne, Mr S P

Hayes, Miss N E

Hosking, Mr L J

Hubbard, Mr R N

Hughes, Mr A H

Jenner, Mrs B I

Kerang Fire Brigade

Kildaras, Mr C

Kerr, Mr A C

Kerr, Mr S C

Lavey, Mr V C

Mahar, Mr C W

Mahar, Mrs R G

Lester‐Smith, Mr A

Manuel, Mr K R

Morgan, Mrs A

Mortlock, Mrs H

Morton, Mr K G

Muir, Mr J W

Muir, Mrs A F

Munro, Dr R

Munro, Mrs R

McDonald, Dr H T

McDonald, Mr I A

McDonald, Mr J R

McDonald, Mr M

McDonald, Mr R D

McDonald, Mrs R D

McFarlane, Mrs D

McGregor, Miss M

McKenzie, Mr A

McMillan, Mr R A

Page, Dr L I

Peck, Mr S F

Peel, Miss H E

Pryor, Mr M A

Quinn, Mr F

Roberts, Mr N J

Robinson, Mrs B

Saddler, Mrs J H

Shipp, Mr K R

Shipp, Mr K W

Shuttleworth, Mr G

Smith, Mrs J W

Spinks, Mr D

Stevenson, Mrs A

Smith, Mr G A

Stone, Rev Canon R

Sutherland, Mr L

Sutherland, Mrs L

Sutherland, Mr N

Taylor, Mr J

Van Beck, Mr J

Watson, Mr J C

Westland, Mrs E J

Wilkinson, Mrs J

Williams, Mr C E

Wilson, Mr W J

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Donations The Board of Management would like to acknowledge the valuable donations received from the following donors for the year ended 30 June 2016. Alexander B

Allen H & E

Astbury B

Bos H

Brimacombe J

Bujdoso J

Callaway C

Cornall J

Cross F

CWA Kerang

Dodgshum Medlin

Fishers IGA

Formanek M

Gannon E

Garret P

Geelong Crochet for Cancer Group

Ilsley Family

KDH Donation Box

Kelly A

Kerang Dance Club

Kerang Football Netball Club

Kerang Turf Club

Kerr E

Kerang Golf Bowling Club

Lingenburg P

Lions Club Murrabit

Lions Club Yarrawonga

Matheson J

McCallum A

McCalman L

Mowat J

Murchie S

Murray to Moyne

Mutch A

My Cause

Norman B

Kerang Probus Club

KDH Ladies Auxiliary

Ritchie V

Rotary Club Kerang

Sambrooks L & K

Sivyer J

Thompson J

Treacy N & T

Williams M

Attestations

Attestation for Compliance with the Ministerial Standing Direction 4.5.5 – Risk Management Framework & Processes I, Robert Jarman, certify that Kerang District Health has complied with Ministerial Direction 4.5.5 – Risk Management Framework and Processes. The Kerang District Health Board of Management has verified this.

Robert Jarman, Chief Executive Officer, Kerang, 25 July 2016

Attestation on Data Integrity I, Robert Jarman, certify that Kerang District Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Kerang District Health has critically reviewed these controls and processes during the year.

Robert Jarman, Chief Executive Officer, Kerang, 25 July 2016

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Current Authority Kerang District Health is established under and operates in accordance with the Health Services Act 1988. The purpose of this Act is to make provision for the development of health services in Victoria, for the carrying on of hospitals, nursing homes and other health care agencies and related matters. The health service reports to the Department of Health and Human Services, through its Loddon Mallee Regional Office located in Bendigo. The Minister for Health is the Honourable Jill Hennessy MLA.

Governance Kerang District Health is governed by a Board of Management, members of which are appointed by the Governor‐in‐Council. The Board of Management comprises nine (9) members who meet twice monthly. The objectives of Kerang District Health are detailed in its By Laws as follows:

To organise for and provide health care services in the Kerang district, including regional services and services provided jointly with other agencies in accordance with the Health Services Act 1988 and other relevant Acts and Regulations.

To utilise appropriate physical and personnel resources, knowledge and technologies available to promote health and to prevent, treat and alleviate disease, injury and suffering so far as possible in the prevailing conditions.

To set and achieve standards consistent with prevailing principles of quality patient care and community health needs.

To foster continuing improvement in standards through education, research and training.

To arrange, manage, and provide programs and services designed to reduce social isolation.

To arrange, manage, provide opportunities for social interaction including an integrated range of services for the diverse needs of individuals and families.

Reports & Publications The following reports and publications dealing with the

functions and activities of the health service are available

from the office of the Chief Executive Officer;

By‐Laws

Annual Report

Quality of Care Report

Department of Health and Human Services Annual Report

The current regulations of Kerang District Health are

incorporated in the By‐Laws of Kerang District Health dated

January 2005, and approved by the Department of Health

and Human Services.

Pecuniary Interest Members of the Board of Management are required to lodge a declaration of pecuniary interest.

Fees Kerang District Health charges fees as directed and published in circulars issued by the Department of Health and Human Services.

Industrial Relations Industrial relations within the Health Service have been harmonious and no time was lost in 2015/16 due to industrial disputes.

Overseas Visits No member of staff travelled overseas on business during 2015/2016.

Freedom of Information During 2015/2016 there were ten (10) requests for access to documents under the Freedom of Information Act compared with fourteen (14) in 2014/2015 and all of these requests were for access to medical records. All ten (10) of these requests were approved. The Chief Executive Officer is the Principal Officer to whom all requests should be forwarded.

Consultancies In 2015/16, there was one (1) consultancy where the total fees payable to the consultants was $10,000 or greater. The total expenditure incurred during 2015/2016 in relation to this consultancy was $12,375 (excl. GST). Details of the individual consultancies can be viewed in the table on page 24. In 2015/2016 there were eight (8) other consultancies totalling $11,279.71. Each of these consultancies was valued at less than $10,000.

Building Act 1993 This Act sets standards for the construction of new buildings and for the maintenance of existing buildings. It includes provisions to protect the safety and health of building users, and cost effective construction is encouraged. All building work carried out during 2015/2016 complies with current Building Standards and to the best of our knowledge, the Health Service complies with building and maintenance provisions as per the Act.

16

Occupational Health & Safety The Health Service has an active Occupational Health & Safety Program to ensure the health & safety of employees, patients and visitors to the Health Service.

National Competition Policy Kerang District Health complies with the requirements of the National Competition Policy and the Victorian Government policy statement, Competitive Neutrality Policy Victoria and subsequent reforms.

Comments & Complaints Kerang District Health encourages comments and complaints from patients, residents, their families and visitors so that this feedback can be used to look at ways of making improvements. All comment and complaint forms are forwarded to the Chief Executive Officer. Each form is registered and a brief summary, whilst maintaining confidentiality, is provided at the monthly Management Quality and Risk Committee meeting. All persons lodging comment and complaint forms receive feedback via telephone, letter or interview. In 2015/2016 Kerang District Health received sixty‐nine (69) complaints compared to fifty‐six (56) in 2014/2015.

Victorian Industry Participation Policy Act 2003 Kerang District Health has not entered into or completed any contracts during 2015/16 which required disclosure under the above Act.

Ex‐Gratia Payments No ex‐gratia payments were made during 2015/16.

Financial Reporting Kerang District Health has provided a statement to the Victorian Auditor general indicating that;

No events have occurred subsequent to balance date which would require adjustment to or disclosure in the financial report:

There are no contingent liabilities which have been bought to the entity’s attention since balance day which

should be included in the financial statements in 2015/16

There are no plans or intentions that may materially affect the carrying values or classification, of assets or liabilities in the financial statements in 2015/16.

Merit & Equity Kerang District Health is committed to applying merit and equity principles when appointing staff. Selection processes ensure that applicants are assessed and evaluated fairly and equitably on the basis of key selection criteria and other accountabilities without discrimination. Kerang District Health acknowledges its obligations under the Public Administration Act 2004 and promotes and supports adherence to the public sector values prescribed in the Act. All employees model their behaviour in accordance with the Code of Conduct for Victorian Public Sector Employees and the specific public sector values of Responsiveness, Integrity, Impartiality, Accountability, Respect, Leadership and Human Rights, with particular reference to the Victorian Charter of Human Rights and Responsibilities.

Environmental Performance Kerang District Health strives to continually improve the health of the people in our community by endeavouring to provide health care in an environmentally sound and sustainable manner. We commit to continual improvement in energy saving initiatives to reduce our carbon foot print. We progressively establish and maintain environmental standards in compliance with all applicable regulations and standards. Kerang District Health’s environmental management strategy covers elements of energy reduction and sustainability from water, gas, electricity, waste and recycling to transport, procurement and service delivery. Our performance is reported to the Department of Health and Human Services in the Victorian Public Healthcare Services Reporting Tool quarterly.

Carers Recognition Act 2012 Kerang District Health recognises its obligations under the Carers Recognition Act 2012 by ensuring that; a. Its employees and agents have an awareness and

understanding of the care relationship principles; b. All practicable measures are taken to ensure that

persons who are in care relationships and who are receiving services in relation to the care relationships from the care support organisation have an awareness and understanding of the care relationship principles;

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c. All practicable measures are taken to ensure that the

care support organisation and its employees and agents reflect the care relationship principles in developing, providing or evaluating support and assistance for persons in care relationships.

Protected Disclosure Act 2012 Kerang District Health has policies and procedures consistent with the requirements of the Protected Disclosure Act 2012 which supports staff to disclose improper or corrupt conduct within the health service. In 2015/2016 there were no disclosures made to Kerang District Health under the Act.

Occupational Violence

Definitions For the purposes of the above statistics the following definitions apply: Occupational Violence: Any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment. Incident: Occupational health and safety incidents reported in the health services incident reporting system. Code Grey reporting is not included Accepted WorkCover Claims: Accepted WorkCover claims that were lodged in 2015‐2016. Lost Time: Is defined as greater than one day.

Occupational Violence Statistics 2015/16

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

0

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

0

3. Number of occupational violence incidents reported.

19

4. Number of occupational violence incidents reported per 100 FTE.

0.2

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

0%

18

Strategic Planning The table below provides an overview of the progress towards the achievement of the Strategic Objectives contained in the 2016‐2018 Strategic Plan.

Strategy Outcome

Strategic Objective 1 – Our People: Secure an agile workforce where safety is paramount, learning and

education opportunities are provided, and our staff and consumers have access to timely information.

Recruitment GP Anaesthetist GP Obstetrician

Director of Medical Services Surgeons/Visiting specialists

Replacement GPs.

Currently advertising via RWAV website and also using external recruitment consultants.

Replacement DMS appointed in Jan 2016.

Replacement surgeons being recruited for orthopaedics and ENT.

Currently advertising via RWAV website and also using external recruitment consultants.

Communication We will communicate with the community

to ensure they are aware of services offered, including any changes to our service provision.

Partnering with Consumers Committee established and meeting regularly.

Monthly advertising feature in the Gannawarra Times

We will communicate with staff across the health service in regard to governance and workplace issues.

Weekly department heads huddle introduced.

Monthly organisation wide staff meetings introduced.

2016 People Matter Survey conducted.

Strategic Objective 2 – Service Provision & Partnerships: Actively participate in the design of integrated and coordinated delivery of services, and enhance affiliations with providers to avoid duplication, optimize service availability and continually.

Mental Health & Wellbeing Explore and implement collaborative

prevention and early intervention initiatives to address mental health and wellbeing, including alcohol dependence, drug dependence and domestic violence in the community.

Regular meetings held with SMPCP, GLAM and Murray Primary Health Network.

Midwifery Service Make a decision regarding the continuation

of maternity services to ensure that they safely meet the needs of the community and communicate the outcome to the community.

Low Risk Maternity Care agreement between KDH and SDHS.

No action to date.

Primary Health Explore opportunities to work

collaboratively with other service providers to support the community, especially the low socio economic sector with nutrition/ healthy eating strategies and support around issues of obesity and diabetes.

Regular meetings held with SMPCP, GLAM and Murray Primary Health Network.

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Allied Health Explore possibilities to share Allied Health

services with other health services. No action to date.

Residential Aged Care In the relocation of the Residential Aged

Care facility ensure an enhanced homelike environment is complemented by the introduction of additional daily activities for residents.

Additional daily activities have been introduced for residents with the new kitchen and living area.

Attended and monitored by Aged Care NUM.

Information Technology

Utilise video conferencing and eHealth technologies to enhance service provision.

New video conferencing units purchased and installed with training provided. – July 2016.

Strategic Objective 3 – Leadership & Governance: Ensure our governance systems support

best care for our people

Financial

Maintain financial viability. Surplus budget achieved in 2015/16.

Quality & Safety Continue work on developing a sound

quality system across the organisation to ensure that the four pillars of quality and safety are embedded in aged care, acute services and community services.

Full accreditation maintained with;

National Standards

Aged Care Standards

HACC Standards

Food Safety ‐ Successful audit 2016

Cleaning Standards – excellent standover

Ensure good clinical leadership/supervision/governance is in place.

Currently reviewing the organisations clinical governance policy and structure to make recommendations to the Board.

Develop strategies to improve health literacy with patients and carers, (both written and verbal) especially in regard to medications.

Target a 10% increase in satisfaction to questions for health literacy as per the VPES.

Strategic Objective 4 – Infrastructure: Ensure our facilities support best care for our people.

Infrastructure Completion of the $36.3 million capital

redevelopment program. Projected completion date 15 August 2016.

Complete a refurbishment of the first floor administration area.

Plans and specifications currently being finalised by architects.

Refurbish and extend the WD Thomas Activity Centre.

Plans and specifications currently being finalised by McKnight and Bray.

Seek support from Bendigo Radiology for the provision of a CT scanner and operator to enhance service provision.

No action to date.

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ACTION Demonstrate an organisational commitment to Occupational Health & Safety, including mental health and wellbeing in the workplace. Ensure accessible and affordable support services are available for employees experiencing mental ill health. Work collaboratively with the Department of Health and Human Services and professional bodies to identify and address systemic issues of mental ill health amongst the medical professions.

DELIVERABLES Have the OH&S Officer & HR Officer review feedback from the Employee Assistance Program to ensure support services to staff are available and effective. By June 2016.

DELIVERABLES Analysis and development of key performance indicators for the introduction of colonoscopies to ensure responsiveness to clinical demand to minimise waiting times by 30 June 2016. Analyse the progress of the shared model of care for maternity services by 31 March 2016.

Establish a family violence reporting system where front line medical and nursing staff report all instances of family violence to relevant organisations with statistics maintained without identifying the individual. Meet with local Police, Northern Districts Community Health Service and Gannawarra Shire Council on a quarterly basis to review interventions, processes and systems. Establish a formal framework for receiving feedback from consumers via survey results and patient stories by 31 December 2015.

ACTION Drive improved health outcomes through a strong focus on patient centred care in the planning, delivery and evaluation of services, and the development of new models for putting patients first.

Strengthen the response of health services to family violence. This includes implementing interventions, processes and systems to prevent; identify and respond appropriately to family violence at an individual and community level. Use consumer feedback and develop participation processes to improve person and family centred care, health service practice and patient experiences.

Priority 1 Patient Experience and Outcomes

Priority 2 Governance, Leadership and Culture

Statement of Priorities 2015/2016

The Victorian Governments priorities and policy directions are outlined in the Victorian Health Priorities Framework 2012‐2022. In 2015/2016 Kerang District Health will contribute to the achievement of these priorities by:

PART A: STRATEGIC PRIORITIES

OUTCOMES Achieved General surgeon allocated additional day monthly to meet increased demand for. An additional colonoscope was also purchased. Surgeon assesses patients to prioritize the waiting list.

Achieved GP Obstetrician resigned in Aug 2015. Low Risk Women: referred to Swan Hill District Health and High Risk Women referred to Bendigo Health. Antenatal and postnatal care offered locally.

Achieved Policy implemented with referral pathway. All staff participated in “Take a Stand” training by NDCHS over 2016. GLAM (Gannawarra Local Agency Meeting) Bi‐Monthly to address issues with referral of prevention.

Achieved Feedback/Complaint/Suggestions are entered onto VHIMS, reviewed monthly, and reported to Board of Management . Consumer feedback via VHES, groups, informal surveys are managed by Quality Coordinator and discussed at Management, Quality and Risk Meetings.

OUTCOMES Achieved Kerang District Health EAP (Employee Assistance Program) is an anonymous and confidential service. Verification of EAP use is monitored by the HR Officer. HR to consider surveying staff at KDH who use EAP service regarding EAP service.

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ACTION Ensure management plans are in place to prevent, detect and contain Carbapenem Resistant Enterobacteriaceae as outlined in Hospital Circular 02/15 (issued 16 June 2015). Implement effective antimicrobial stewardship practices and increase awareness of antimicrobial resistance, its implications and actions to combat it, through effective communication, education, and training. Ensure that emergency response management plans are in place, regularly exercised and updated, including trigger activation and communication arrangements.

DELIVERABLES Policies and management plans to be developed by 31 December 2015. Antimicrobial stewardship practices and auditing schedules to be in place by 31 December 2015. Monitor and review outcomes of emergency responses and ensure they are exercised by 31 March 2016.

ACTION Monitor and publicly report incidents of occupational violence. Work collaboratively with the Department of Health and Human Services to develop systems to prevent the occurrence of

occupational violence. Promote a positive workplace culture and implement strategies to prevent bullying and harassment in the workplace. Monitor trends of complaints of bullying and harassment and identify and address organisational units exhibiting poor workplace culture and morale. Implement strategies to support health service workers to respond to the needs of people affected by ice.

Priority 3 Safety & Quality

Cont...

DELIVERABLES Code Grey Program implemented and incidents of occupational violence are reported on Victorian Health Incident Management System and also reported to Occupational Health and Safety, Quality & Risk through to the Board via monthly indicators by 31 March 2016. The Occupational Health and Safety Officer and the Human Resources Officer will monitor incidents of occupational violence via the Victorian Health Incident Management System and develop systems to prevent occupational violence at 31 March 2016. Executive management and staff will review policies on staff grievance, bullying and harassment and complaints to identify and address poor workplace culture and morale by 31 May 2016. Develop policies and implement staff training and education to support staff responding to patients affected by ice by 30 September 2015.

OUTCOMES Achieved Code Grey training carried out at KDH during 2016/17. All occupational violence Incidents are lodged on VHIMS and reported at monthly incident review meetings and reported in the annual report. Achieved OH&S Officer and the Incident Review Panel monitors occupational violence Incidents lodged on VHIMS. Security initiatives have been incorporated in the capital redevelopment. Achieved Staff grievance policy reviewed during 2015/16 and working groups involving staff established to review the results of the 2015 People Matter Survey. Achieved Policies, referral framework and resources implemented with staff training sessions provided by Bendigo health.

OUTCOMES Achieved Policy developed and implemented. Achieved Audits occurring at Clinical Review meetings held monthly. Policies implemented. Achieved Internal and external emergency response plans reviewed during 2015/16 with evacuation procedures and fire safety included in all orientation sessions and PD Days.

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Priority 4 Financial Sustainability

ACTION Improve cash management processes to ensure that financial obligations are met as they are due. Undertake cost benchmarking and develop partnerships with peers to improve operating efficiency.

DELIVERABLES Cash management systems are to be reviewed by both internal and external auditing processes by June 2016 to ensure a trade creditor turnover of less than 60 days. Undertake a cost benchmarking project with Cohuna District Hospital and Boort Hospital to improve operating efficiency by 31 March 2016.

Priority 5 Access

ACTION Implement integrated care approaches across health and community support services to improve access and responses for disadvantaged Victorians. Progress partnerships with other health services to ensure patients can access treatments as close to where they live when it is safe and effective to do so, making the most efficient use of available resources across the system. Reduce unplanned readmissions – with a focus on identifying high risk patients; delivering coordinated and integrated responses; and reducing the use of avoidable acute care services, where practicable and safe to do so.

DELIVERABLES Welfare Officer to evaluate collaboration with Cohuna District Hospital, Gannawarra Shire Council and Northern District Community Health Service to improve access and responses for disadvantaged members of the community by 31 March 2016. Further develop partnership with Cohuna District Hospital and Swan Hill District Health to ensure patients can access treatments close to where they live by 30 April 2016. Clinical Risk Committee to review all unplanned readmissions by 30 April 2016.

OUTCOMES Not Achieved Internal audit currently reviewing process. Partially Achieved Monthly benchmarking data received from Dept of Health and Human Services and monitored by Executive.

OUTCOMES Partially Achieved Welfare officer meets with Social Services provider on a monthly basis and formally liaises with Gannawarra Shire Council and Northern District Community Health Service on a daily basis regarding services for community members. Achieved KDH provides oncology services for Cohuna residents and Cohuna District Hospital provides dialysis services to Kerang residents. Achieved All unplanned readmissions are referred to the Clinical Review Committee for review.

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Statement of Priorities 2015/2016

The Victorian Governments priorities and policy directions are outlined in the Victorian Health Priorities Framework 2012‐2022. In 2015/2016 Kerang District Health will contribute to the achievement of these priorities by:

PART B: PERFORMANCE PRIORITIES

Safety and quality performance TARGET ACTUAL Key performance indicator Target Compliance with NSQHS Standards accreditation Full compliance Achieved Compliance with the Commonwealth’s Aged Care Accreditation Standards Full compliance Achieved Cleaning standards Full compliance Achieved Compliance with the Hand Hygiene Australia program 80% 96.3% Percentage of healthcare workers immunised for influenza 75% 86.0% Submission of infection surveillance data to VICNISS1 Full compliance Achieved

Patient experience and outcomes performance Key performance indicator Target Maternity – Percentage of women with prearranged postnatal home care 100% 98%

Governance, leadership and culture performance Key performance indicator Target People Matter Survey ‐ percentage of staff with a positive response to safety Culture questions 80% 89%

Victorian Healthcare Experience Survey reporting

1 VICNISS is the Victorian Hospital Acquired Infection Surveillance System

Key performance indicator Target 2015‐16 Result

Victorian Healthcare Experience Survey ‐ data submission

Full compliance Achieved

Victorian Healthcare Experience Survey – patient experience Quarter 1

95% positive experience 96% Achieved





24

Details of Individual Consultancies (valued at $10,000.00 or greater)

Workforce Statistics Labour Category

Employment Status

Consultant Purpose of consultancy Start Date End Date Total approved project fee (exc. GST)

Expenditure

2015/16

(exc. GST)

Future expenditure (exc. GST)

Heathcote Health

ACFI Project for Aged Care

7/2015 6/2016 N/A $12,375 Nil

Labour Category 2016 ‐ JUNE

Current Month FTE 2016 ‐ JUNE YTD FTE

2015 ‐ JUNE YTD FTE

Nursing 58.66 55.60 58.48

Administration & Clerical 18.20 18.01 16.93

Hotel & Allied Services 24.26 23.12 24.88

Ancillary Staff (Allied Health)

9.63 8.48 8.13

Total FTE 110.85 105.36 108.42

Employment Status by Gender at 30 June 2016

Full Time Part Time Casual Total Percentage

Females 17 116 17 150 83%

Males 7 17 6 30 17%

Total 24 133 23 180 100%

25

Staff CHIEF EXECUTIVE OFFICER Mr R Jarman DIRECTOR OF CLINICAL SERVICES Mrs C Keogh DIRECTOR CORPORATE SERVICES Mr P Jones DIRECTOR OF HUMAN RESOURCES Ms Jackie Clingan DIRECTOR OF MEDICAL SERVICES Dr Paul Francis Dr Craig Winter (from Dec 15) NURSE UNIT MANAGER – ACUTE Mrs L Stacey Ms H Trotter (Midwife) NURSE UNIT MANAGER – GLENARM Mrs M Hunter NURSE UNIT MANAGER – THEATRE/SURGICAL ADMISSIONS Mrs M Christian NURSE UNIT MANAGER – DISTRICT NURSING Mrs S Gray AFTERNOON/NIGHT SUPERVISORS Mrs C Boyd (Midwife) Ms G Finch (Midwife) Mrs R Helsham (Midwife) Mrs S McDonald (Midwife) Mrs M Neville (Midwife) NURSE PRACTITIONERS Mrs Y Fabry (Midwife) Ms T Kinsey (Midwife) ASSOCIATE NURSE UNIT MANAGERS – ACUTE Mrs C Fletcher (Midwife) Miss M Heffer Mrs M Kaithathara George Mrs J Makeham Mrs M Mann Mrs H McKnight Mrs P Myers Mrs N Robinson (Midwife) ASSOCIATE NURSE UNIT MANAGERS ‐ GLENARM Mr P Donat Miss C McClay Mrs R Pearce Mr B Ruiz Mrs J Tanner Ms C Williams ADMINISTRATION / CLERICAL Ms H Butler

Ms M Dagge Ms C Dear Mrs R Greenwood Mrs O Spark Mrs T Steains Mrs A Teasdale OCCUPATIONAL HEALTH & SAFETY OFFICER Mrs C Trewin FINANCE OFFICER Mr A Pearson SUPPLY OFFICER Ms A Ritchie HUMAN RESOURCES/PAYROLL OFFICER Mrs M Maritz QUALITY IMPROVEMENT Mrs Y Fabry Mrs K Transton (From Sep 15) NURSING ADMINISTRATION Mrs B Collier Ms C Inglis Mrs H Ladgrove Mrs R Laughlin Ms B Louder Mrs N Sanders Ms N Webb ABORIGINAL LIASION OFFICER Ms E Kirby HEALTH INFORMATION MANAGEMENT Echuca Regional Health Ms E D’Angri CLINICAL PLACEMENT COORDINATOR Mrs A Jardine MAINTENANCE Mr B Alexander Mr I Hastie Mr L Champion (Trainee) MEN’S SHED Mr D Robinson Mr B Sambrooks ACTIVITY CENTRE/PAG Mrs J Barton Ms R Booth Ms K Callaway Mrs K Hewitt Mrs J McClelland Mrs S McNeil Mr G Price

GLENARM LIFESTYLE & LEISURE Ms A Kilderry Mrs M Wilson REGISTERED NURSES Mr V Aredath Miss D Bennett (Grad 2016) Miss P Bhujel (Grad 2016) Mrs J Blow Ms J Emonson Mrs S Gordon (Grad 2016) Mrs S Hall Ms E Holliday Ms M Irvin Ms J Lamb (Midwife) Mrs J Lightbody Mrs T Martin Ms K Mudge (Midwife) Ms A Nuss Miss J O’Donohue Mrs H Pickering (Midwife) Ms R Sager Ms JA Taylor Miss H Wellard (Grad 2015) Mrs K Williams (Grad 2015) ENROLLED NURSES Mrs C Beale Ms L Beet Ms J Bennett Ms K Bradshaw Mrs A Bujdoso Ms J Chester Ms H Delamare Ms J Farley Ms S Farrant Mrs K Fullard Mrs L Gibbons Mr B Gillingham Mr K Gillingham Mrs S Gillingham Mrs C Hahnel Miss T Hare Mrs T Hastie Mrs S Haw Ms S Heald Mrs J Henderson Mrs D Henderson Mrs W Henery Mrs C Hosking Miss K Hull Ms D Lehmann Ms S Martin Mrs D Mathers Ms J McCallum Mr J Nixon Mrs D O’Brien Mrs J O’Brien Ms K Robinson Mrs C Sarre Mrs L Sinclair Mrs J Steains

26

Ms T Tasevski Ms J Theobald Ms T Williamson Ms B Wilson Mrs L Wishart DISTRICT NURSES Mrs C Algie Mrs M Harrop (Midwife) Mrs N Robinson (Midwife) Mrs J Taylor (Midwife) Ms C Williams Mrs K Wilson CATERING & DOMESTIC SERVICES SUPERVISOR Ms W VanderHeiden CATERING & DOMESTIC SERVICES Ms S Dunne Mrs J Fenton Mrs N Fisher Mrs J Gibbons Mrs G Hayes Mr B Heritage

Mrs M Heritage Mrs K Hipworth Mrs K Hunter Ms S Ilsley Mrs K Marsh Mrs J Matthews Mrs K Messer Mrs T Moffat Mrs L Oram Mrs L Pay Mr A Reid Mrs L Roberts Ms M Sims Miss C Steed Miss K Tanner Mrs T Taylor Mrs J Teasdale Ms R Teasdale Mrs P Walsh Ms M Williams Mr I Williams Mrs M Wilson PCA’s Mrs N Fisher

Mrs K Gillingham Miss S Hancock Miss T Keating Ms A Kelly Ms L Lowry Miss M O’Brien KERANG MEDICAL CLINIC Mrs J Borchard Mrs V Brennan Ms L Cook Ms A Lake Mrs K Matthews Ms H McKay Miss E Millar Mrs D Turvey Mrs S Wood TRANSITIONAL CARE PROGRAM / WELFARE Mrs. N. Opie Ms L Miller

SERVICE AWARDS

The Board of Management acknowledges the valuable service of employees and visiting medical officers each year. Service Badges

are awarded on the completion of ten (10) years of continuous employment, and for each additional five (5) years of continuous

service. Employees who are eligible for service awards at 30th June 2016 are listed below.

Years of Service Employee Years of Service Employee

Ten (10) Melissa Hunter Fifteen (15) Jeecinta Lightbody

Deaniee Henderson Judy Teasdale

Lesley Stacey Twenty (20) Kathryn Wilson

Clare Steed Pam Walsh

Tricia Kinsey Cheryl Dear

Linda Oram Twenty Five (25) Teena Steains

Kim Marsh Maree Neville

Ian Hastie Cheryl Algie

Fifteen (15) Noeleen Opie Thirty (30) Kerryn Bradshaw

Rosie Pearce Thirty‐Five (35) Lyn Mann

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Activity Data

2015/16 2014/15 2013/14 2012/13 2011/12 Separations Public 1050 1305 1455 1527 1758 Private 267 310 213 220 235 DVA 51 59 57 50 72 TAC 2 4 2 6 Nil Other 24 28 3 55 65 Total Separations 1394 1706 1730 1858 2130 Weighted Inlier Equivalent Separations (WIES) WIES Public 618.67 712.68 811.34 789.81 890.91 WIES Private 194.22 187.21 155.62 201.06 189.18 WIES Total Public & Private 812.89 899.89 966.96 990.87 1080.09 WIES DVA 51.42 54.46 41.43 38.54 59.07 WIES TAC 1.80 3.20 0.39 10.33 Nil WIES Other NIL Nil Nil Nil Nil WIES Total 866.11 957.55 1008.78 1039.74 1139.16 WIES Activity Performance WIES (public & private) performance to target (%)

88% 106% 104% 107% 116%

Total Patient Days 4367 4042 4417 5057 5056

Daily Average of Patients 11.93 11.0 12.10 13.9 13.9 Average Length of Stay (Days) 3.0 2.4 2.6 2.7 2.4

Births 1 28 48 47 63

Surgery ‐ Major 111 87 107 149 143 ‐ Minor 165 235 275 278 302

Urgent Care Centre Attendances 2581 2825 2774 2829 2791

Ambulance Transfers 215 196 224 140 185

Outpatient Consultations Obstetrics/Gynaecological/Paediatrics 99 125 148 166 165 Surgical 276 322 382 427 494 Allied Health 144 144 144 132 204

District Nursing ‐ Number of Clients 598 648 612 605 604 ‐ Number of Visits 11239 10533 9931 8641 9351

Day Activities ‐ Number of Clients 325 344 325 370 248 ‐ Number of Attendances 9102 10207 9572 8481 7830

Aged Care – Glenarm Daily Average of Residents 29.50 27.4 27.5 28.1 26.5 Total Resident Days 10743 10000 10034 10273 9696

Meals Prepared ‐ Number of Meals 64408 63033 64399 70034 70205

**The data provided in this table may not be final due to incomplete VAED consolidations at the time of preparation.

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Disclosure Index The Annual Report of Kerang District Health is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

Legislation Requirement Page

Ministerial Directions Report of Operations Charter and purpose FRD 22G Manner of establishment and the relevant ministers 3, 18 FRD 22G Purpose, functions, powers and duties 18 FRD 22G Initiatives and key achievements 8 FRD 22G Nature and range of services provided 4 Management and structure FRD 22G Organisation structure 7 Financial and other information FRD 10A Disclosure index 28 FRD 11A Disclosure of ex‐gratia payments 16 FRD 21B Responsible person and executive officer disclosures 2,14 FRD 22G Application and operation of Protected Disclosure Act 2012 17 FRD 2G Application and operation of Carers Recognition Act 2012 16 FRD 22G Application and operation of Freedom of Information Act 1982 15 FRD 22G Compliance with building and maintenance provisions of Building Act 1993 15 FRD 22G Details of consultancies over $10,000 15, 24 FRD 22G Details of consultancies under $10,000 15 FRD 22G Employment and conduct principles 20 FRD 22G Major changes or factors affecting performance 8‐10 FRD 22G Occupational health and safety 12, 16 FRD 22G Operational and budgetary objectives and performance against objectives 18‐22 FRD 24C Reporting of office‐based environmental impacts 12 FRD 22G Significant changes in financial position during the year Appendix I FRD 22G Statement on National Competition Policy 16 FRD 22G Subsequent events 20 FRD 22G Summary of the financial results for the year Appendix I FRD 22G Workforce Data Disclosures including a statement on the application of employment and conduct principles 16, 24 FRD 25B Victorian Industry Participation Policy disclosures 16 FRD 29A Workforce Data disclosures 24 SD 4.2(g) Specific information requirements Appendix 1 SD 4.2(j) Sign‐off requirements 14 SD 3.4.13 Attestation on data integrity 14 SD 4.5.5 Risk management compliance attestation 14 Financial Statements Financial statements required under Part 7 of the FMA SD 4.2 (a) Statement of changes in equity Appendix I SD 4.2 (b) Comprehensive operating statement Appendix I SD 4.2 (b) Balance sheet Appendix I SD 4.2 (b) Cash flow statement Appendix I Other requirements under Standing Directions 4.2 SD 4.2 (a) Compliance with Australian accounting standards and other authoritative pronouncements SD 4.2 (c) Accountable officer’s declaration SD 4.2 (c) Compliance with Ministerial Directions SD 4.2 (d) Rounding of amounts Legislation Freedom of Information Act 1982 Protected Disclosure Act 2012 Carers Recognition Act 2012 Victorian Industry Participation Policy Act 2003 Building Act 1993 Financial Management Act 1994

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Additional Information In compliance with the requirements of FRD 22G Standard Disclosures in the Report of Operations, details in respect of the items listed below have been retained by Kerang District Health and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

(a) Declarations of pecuniary interest have been duly completed by all relevant officers.

(b) Details of shares held by senior officers as nominee or held beneficially.

(c) Details of publications produced by the Health Service and how these can be obtained.

(d) Details of changes in prices, fees, charges, rates and levies charged by the Health Service.

(e) Details of any major external reviews carried out on the Health Service.

(f) Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations.

(g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit.

(h) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services.

(i) Details of assessments and measures undertaken to improve the occupational health and safety of employees.

(j) General Statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations.

(k) A list of major committees sponsored by the Health Service, the purpose of each committee and the extent to which the purposes have been achieved.

(l) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.

(m) A statement, to the extent applicable, that the information listed in Appendix 1 of FRD 15B, is available on request to the relevant Minister, Members of Parliament or the public.

Annual Report 2015/2016

Appendix 1

FINANCIAL STATEMENTS

For the year ended 30th June 2016

Note

2016 2015

$ $

Revenue from Operating Activities 2 12,198,553 11,963,514

Revenue from Non-Operating Activities 2 216,048 213,697

Employee Expenses 3 (8,624,817) (8,597,693)

Non Salary Labour Costs 3 (812,999) (864,060)

Computer Services 3 (659,027) (635,532)

Administrative Costs 3 (539,100) (670,093)

Supplies and Consumables 3 (662,309) (628,148)

Specific Expenses 3 - (298,792)

Other Expenses 3 (1,023,589) (1,018,247)

Net Result Before Capital and Specific

Items

92,760 (535,354)

Capital Purpose Income 2 1,409,479 3,132,052

Depreciation 4 (1,775,686) (1,133,996)

Expenditure using Capital Purpose Income 3 (367,716) (25,021)

NET RESULT FOR THE YEAR (641,163) 1,437,681

Other Comprehensive Income

Changes in physical asset revaluation surplus 15(a) - -

COMPREHENSIVE RESULT (641,163) 1,437,681

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

Kerang District Health Service

Comprehensive Operating StatementFor the Financial Year Ended 30 June 2016

Items that will not be reclassified to net result

Note

2016 2015

$ $

Current AssetsCash and Cash Equivalents 5 1,884,447 760,601

Receivables 6 351,925 338,263

Investments and Other Financial Assets 7 2,208,798 2,231,949

Inventories 8 83,358 76,853

Prepayments and Other Assets 9 233,553 219,005

Total Current Assets 4,762,081 3,626,671

Non-Current AssetsReceivables 6 355,270 365,015

Property, Plant and Equipment 10 32,617,481 29,286,821

Total Non-Current Assets 32,972,751 29,651,836

TOTAL ASSETS 37,734,832 33,278,507

Current LiabilitiesPayables 11 522,335 723,322 Provisions 12 2,562,496 2,479,902

Other Liabilities 14 942,540 365,015

Total Current Liabilities 4,027,371 3,568,239

Non-Current LiabilitiesProvisions 12 278,463 270,093

Total Non-Current Liabilities 278,463 270,093

TOTAL LIABILITIES 4,305,834 3,838,332

NET ASSETS 33,428,998 29,440,175

EQUITY

Property, Plant and Equipment Revaluation Surplus 15a 5,112,575 5,112,575

Restricted Specific Purpose Surplus 15a 105,000 105,000

Contributed Capital 15b 16,846,707 12,216,722

Accumulated Surpluses 15c 11,364,716 12,005,878

TOTAL EQUITY 15c 33,428,998 29,440,175

Commitments 18

Contingent Assets and Contingent Liabilities 19

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

Balance Sheet

As at 30 June 2016


Property,

Plant &

Equipment

Revaluation

Surplus

Restricted

Specific

Purpose

Surplus

Contributed

Capital

Accumulated

Surpluses/

(Deficits)

Total

Note $ $ $ $ $Balance at 1 July 2014 5,112,575 105,000 4,781,051 10,568,200 20,566,826

Net result for the year 15 - - - 1,437,678 1,437,678

Capital Contribution received

from Victorian Government15

- - 7,435,671 - 7,435,671

5,112,575 105,000 12,216,722 12,005,878 29,440,175

Net result for the year 15 - - - (641,163) (641,163)

Capital Contribution received

from Victorian Government15

- - 4,629,985 - 4,629,985

5,112,575 105,000 16,846,707 11,364,715 33,428,997

This Statement should be read in conjunction with the accompanying notes

Balance at 30 June 2016

Statement of Changes in Equity

For the Financial Year Ended 30 June 2016


Balance at 30 June 2015


Cash Flow Statement

For the Financial Year Ended 30 June 2016

Note2016 2015

$ $

CASH FLOWS FROM OPERATING ACTIVITIESOperating Grants from Government 9,273,637 9,044,675

Capital Grants from Government 807,620 2,192,912

Patient and Resident Fees Received 2,365,103 2,166,869

Donations and Bequests Received 303,085 188,036

GST Received from/(paid to) ATO (651) 172,495

Interest Received 75,174 99,236

Other Receipts 343,402 328,074

Total Receipts 13,167,370 14,192,297

Employee Expenses Paid (8,533,853) (8,477,812)

Non Salary Labour Costs (812,999) (864,060)

Payments for Supplies & Consumables (878,345) (1,476,948)

Capital Purpose (305,062) (25,021)

Other Payments (1,910,047) (2,427,479)

Total Payments (12,440,306) (13,271,320)

NET CASH FLOW FROM OPERATING ACTIVITIES 16 727,064 920,977

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Investments (13,453) 509,066

Payments for Non-Financial Assets (4,847,724) (9,767,804)

Proceeds from sale of Non-Financial Assets 42,964 152,000

NET CASH USED IN INVESTING ACTIVITIES (4,818,213) (9,106,738)

CASH FLOWS FROM FINANCING ACTIVITIES

Contributed capital from government 4,629,984 7,435,669

NET CASH USED IN FINANCING ACTIVITIES 4,629,984 7,435,669

NET INCREASE/(DECREASE) IN CASH AND CASH

EQUIVALENTS HELD 538,835 (750,092)

CASH AND CASH EQUIVALENTS AT BEGINNING OF

FINANCIAL YEAR 394,792 1,144,884

CASH AND CASH EQUIVALENTS AT END OF

FINANCIAL YEAR 5 933,627 394,792

This Statement should be read in conjunction with the accompanying notes

Kerang District Health Notes to the financial statements

30 June 2016

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These annual financial statements represent the audited general purpose financial statements for Kerang District Health for the period ending 30 June 2016. The purpose of the report is to provide users with information about the Health Services' stewardship of resources entrusted to it. (a) Statement of compliance

These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable Australian Accounting Standards (AASs) which include interpretations issued by the Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB101 Presentation of Financial Statements. The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Minister for Finance. The Health Service is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit" Health Services under the AAS's. The annual financial statements were authorised for issue by the Board of Kerang District Health on 5th September 2016. (b) Basis of accounting preparation and measurement Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2016, and the comparative information presented in these financial statements for the year ended 30 June 2015. The going concern basis was used to prepare the financial statements. These financial statements are presented in Australian Dollars, the functional and presentation currency of the Health Service. The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid. The financial statements are prepared in accordance with the historical cost convention, except for:

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

• derivative financial instruments, managed investment schemes, certain debt securities, and investment

properties after initial recognition, which are measured at fair value with changes reflected in the comprehensive operating statement (fair value through profit and loss);

• available-for-sale investments which are measured at fair value with movements reflected in equity until

the asset is derecognised (i.e. other comprehensive income-items that may be reclassified subsequent to net result); and


30 June 2016

(b) Basis of accounting preparation and measurement (continued)

• the fair value of assets other than land is generally based on their depreciated replacement value. Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods affected by the revision. Judgements and assumptions made by management in the application of AAS's that have significant effects on the financial statements and estimates, relate to:

• the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(j)); • superannuation expense (refer to note 1(G)); and • actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of

leave claims, future salary movements and future discount rates (refer to Note 1(k)). Consistent with AASB 13 Fair Value Measurement, Kerang District Health determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and relevant FRD’s. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable. • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly unobservable. For the purposes of fair value, Kerang District Health has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. In addition, Kerang District Health determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. The Valuer-General Victoria (VGV) is Kerang District Health’s independent valuation agency. Kerang District Health, in conjunction with the VGV monitors the changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required. (c) Reporting Entity The financial statements include all the controlled activities of Kerang District Health. Its principal address is: Burgoyne Street Kerang Vic 3579 A description of the nature of Kerang District Health's operations and its principal activities is included in the report of operations, which does not form part of these financial statements.


30 June 2016 (c) Reporting Entity (continued) Objectives and Funding Kerang District Health's overall objective is to improve the health and wellbeing of the community as well as improve the quality of life to Victorians. Kerang District Health is predominantly funded by block grant funding for the provision of outputs. (d) Principles of Consolidation Intersegment Transactions Transactions between segments within Kerang District Health have been eliminated to reflect the extent of Kerang District Health's operations as a group. Jointly controlled assets Interests in jointly controlled assets are not consolidated by Kerang District Health but are accounted for in accordance with the policy outlined in Note 1(j) Financial Assets. (e) Scope and presentation of financial statements Fund Accounting Kerang District Health operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds. Kerang District Health's Capital and Specific Purpose Funds include unspent capital donations and receipts from fundraising activities conducted solely in respect of these funds. Services Supported by Health Services Agreement and Services Supported by Hospital and Community Initiatives. Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and Human Services and include Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital and Community Initiatives (H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth. Residential Aged Care Service The Residential Aged Care Service, Glenarm Nursing Home, operations are an integral part of Kerang District Health and shares its resources. An apportionment of land and buildings has been made based on floor space. The results of the two operations have been segregated based on actual revenue earned and expenditure incurred by each operation in note 2 and 3 to the financial statements. The Glenarm Nursing Home is substantially funded from Commonwealth bed day subsidies. Comprehensive operating statement The Comprehensive operating statement includes the subtotal entitled 'Net result Before Capital & Specific Items' to enhance the understanding of the financial performance of Kerang District Health. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge, depreciation, expenditure using capital purpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of these items is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public Health Services. The 'Net Result Before Capital & Specific Items' is used by the management of Kerang District Health, the Department of Health


30 June 2016 (e) Scope and presentation of financial statements (continued) and Human Services and the Victorian Government to measure the ongoing operating performance of Health Services. Capital and specific items, which are excluded from this sub-total comprise:

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

• specific income/expense, comprises the following items, where material: o Non-current asset revaluation increments/decrements o Diminution/impairment of investments o Reversals of provisions;

• impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), which have been recognised in accordance with note 1 (j);

• depreciation, as described in Note 1 (g); • expenditure using capital purpose income, comprises expenditure which either falls below the asset

capitalisation threshold or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where the funding for that expenditure is from capital purpose income.

Balance Sheet Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be recovered/settled more than 12 months after reporting period), are disclosed in notes where relevant. Statement of changes in equity. The statement of changes in equity presents reconciliations of each non-owner and owner changes in equity from the opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income. Cash flow statement Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows. For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current borrowings in the balance sheet.

Rounding

All amounts shown in the financial statements are expressed to the nearest $ unless otherwise stated. Comparative Information There have been no changes to comparative information which require additional disclosure.


30 June 2016 (f) Income from Transactions Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Kerang District Health and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance. Amounts disclosed as revenue are where applicable, net of returns, allowances and duties and taxes. Government Grants and other transfers of income (other than contributions by owners) In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are recognised as income when the Health Service gains control of the underlying assets irrespective of whether conditions are imposed on the Health Service's use of the contributions. Contributions are deferred as income in advance when the Health Service has a present obligation to repay them and the present obligation can be reliably measured. Indirect Contributions from the Department of Health and Human Services

• Insurance is recognised as revenue following advice from the Department of Health and Human Services.

• Long Service Leave (LSL) - Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital Circular 05/2013.

Patient and Resident Fees Patient fees are recognised as revenue at the time invoices are raised. Private Practice Fees Private Practice fees are recognised as revenue at the time invoices are raised. Revenue from commercial activities Revenue from commercial activities such as provision of meals to external users is recognised at the time the invoices are raised. Donations and Other Bequests Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as specific restricted purpose surplus. Interest Revenue Interest revenue is recognised on a time proportionate basis that takes in account the effective yield of the financial asset, which allocates interest over the relevant period. Sale of investments The gain/loss on the sale of investments is recognised when the investment is realised. (g) Expense Recognition Expenses are recognised as they are incurred and reported in the financial year to which they relate.


30 June 2016 (g) Expense Recognition (continued) Cost of Goods Sold Cost of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item/s from inventories. Employee expenses Employee expenses include:

• wages and salaries; • annual leave; • sick leave; • long service leave; and • superannuation expenses which are reported differently depending upon whether employees are

members of defined benefit or defined contribution plans. Defined contribution superannuation plans In relation to defined contributions (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred. Defined benefit superannuation plans The amount charged to the Comprehensive Operating Statement in respect of defined benefit superannuation plans represents the contributions made by the Health Service to the superannuation plans in respect of services of current Health Service staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based upon actuarial advice. Employees of Kerang District Health are entitled to receive superannuation benefits and Kerang District Health contributes to both the defined benefit and defined contribution plans. The defined benefit plans provide benefits based on years of service and final average salary. The name and details of the major employee superannuation funds and contributions made by Kerang District Health are disclosed in note 13: Superannuation. Depreciation All infrastructure assets, buildings, plant and equipment, and other non financial physical assets that have finite useful lives are depreciated. Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually. This depreciation charge is not funded by the Department of Health and Human Services. Assets with a cost in excess of $1,000 (2014-15 and 2015-2016) are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives. The following table in indicates the expected useful lives of non current assets on which the depreciation charges are based.


30 June 2016 (g) Expense Recognition (continued)

2016 2015

Buildings

- Structure Shell Building Fabric

45 to 60 years 45 to 60 years

- Site Engineering Services and Central Plant 20 to 30 years 20 to 30 years

- Fit Out


- Trunk Reticulated Building Systems 30 to 40 years 30 to 40 years

Plant & Equipment


Medical Equipment


Computers and Communication

3 years 3 years

Furniture & Fittings

13 years 13 years

Motor Vehicles

10 years 10 years

Leasehold Improvements

2 to 10 years 2 to 10 years The estimated useful lives, residual values and depreciation methods are reviewed at the end of each annual reporting period, and adjustments made where appropriate. As part of the buildings valuation, building values were separated into components and each component assessed for its useful life which is represented above. Other Operating Expenses Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include: Supplies and consumables Supplies and service costs are recognised as an expense in the reporting period in which they are incurred. Bad and Doubtful Debts Refer to Note 1 (j) Impairment of financial assets. Fair value of assets, services and resources provided free of charge or for nominal consideration Contributions of resources provided or received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another entity or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated. (h) Other economic flows included in net result Other economic flows are changes in the volume or value of assets or liabilities that do not result from transactions. Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:


30 June 2016 (h) Other economic flows included in net result (continued) Revaluation gains/(losses) of non financial physical assets Refer Note 1 (j) Revaluations of non financial physical assets. Net gain/(loss) on disposal of non-financial assets. Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying value of the asset at that time.

Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes:

- realised and unrealised gains and losses from revaluations of financial instruments at fair value; - impairment and reversal of impairment for financial instruments at amortised cost (refer Note 1 (j)); and - disposals of financial assets and derecognition of financial liabilities

Revaluations of financial instrument at fair value Refer Note 1 (i) Financial Instruments. Share of net profits/(losses) of associates and joint entities, excluding dividends Refer Note 1 (d) Principles on consolidation. (i) Financial Instruments Financial Instruments arise out of contractual agreements that give rise to a financial asset of one Health Service and a financial liability or equity instrument of another Health Service. Due to the nature of the Kerang District Health's activities, certain financial assets and financial liabilities arise under statue rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract. Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not. Loans and Receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transactions costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Loans and receivables category includes cash and deposits (refer to Note 1(j)), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables. Available-for-sale financial assets Available-for-sale financial instrument assets are those designated as available-for-sale or not classified in any other category of financial instrument asset. Such assets are initially recognised at fair value. Subsequent to initial recognition, gains and losses arising from changes in fair value are recognised in 'other comprehensive income' until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in net result for the period. Fair value is determined in the manner described in Note 17.


30 June 2016

(i) Financial Instruments (continued)

Financial Liabilities at amortised cost Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method. Financial instrument liabilities measured at amortised cost include all of the Health Service’s contractual payables, deposits held and advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss. (j) Assets Cash and Cash Equivalents Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value. For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities on the balance sheet. Receivables Receivables consist of:

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

- Statutory receivables, which includes predominantly amounts owing from the Victorian Government and Goods and Services Tax (“GST”) input tax credits recoverable.

Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment. Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified. Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Investments are classified in the following categories:

- Loans and receivables; and - Available for sale financial assets.

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


30 June 2016 (j) Assets (continued) Kerang District Health assesses at each balance sheet date whether a financial asset or group of financial assets is impaired. All financial assets, except those measured at fair value through profit and loss are subject to annual review for impairment. Inventories Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It excludes depreciable assets. Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Inventories acquired for no cost or nominal considerations are measured at current replacement cost at date of acquisition. The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired. Cost for all other inventory is measured on the basis of weighted average cost. Property, Plant and Equipment All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Crown Land is measured at fair value with regard to the property's highest and best use after due consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restriction will no longer apply. Land and Buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Plant, Equipment and Vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned. Revaluations of Non-current Physical Assets Non-Current physical assets are measured at fair value and are revalued in accordance with FRD 103F Non-current physical assets. This revaluation process normally occurs at least every five years, based upon the asset's Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset's carrying value and fair value. Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly in equity to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net the result, the increment is recognised as income in the net result.


30 June 2016 (j) Assets (continued) Revaluation decrements are recognised in 'other comprehensive income' to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes. Revaluation surplus are not normally transferred to accumulated funds on derecognition of the relevant asset. In accordance with FRD 103F Kerang District Health's non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required. Prepayments Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period. Disposal of Non-Financial Assets Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement. Refer Note 1 (h) Other Comprehensive Income. Impairment of Non-Financial Assets All other non-financial assets are assessed annually for indications of impairment, except for:

• inventories; • non-current physical assets held for sale; and • assets arising from construction contracts.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset's carrying value exceeds its recoverable amount, the difference is written-off as an expense except to the extent that the write-down can be debited to an asset revaluation surplus amount applicable to that same class of asset. If there is an indication that there has been a change in the estimate of an asset's recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs of disposal. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. Investments in Joint Operations In respect of any interest in joint operations, Kerang District Health recognises in the financial statements:

• Its assets, including its share of any assets held jointly; • Any liabilities including its share of liabilities that it had incurred; • Its revenue from the sale of its share of the output from joint operations; • Its share of the revenue from the sale of the output by the operation; and • Its expenses, including its share of any expenses incurred jointly.


30 June 2016

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

• the rights to receive cash flow from the asset have expired; or • the Health Service retains the right to receive cash flows from the asset, but has assumed an

obligation to pay them in full without material delay to a third party under a 'pass through' arrangement; or

• the Health Service has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset; or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but

has transferred control of the asset. Impairment of Financial Assets At the end of each reporting period Kerang District Health assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment. Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed. Bad debts written off by mutual consent and the allowance for doubtful debts are classified as 'other comprehensive income' in the net result. The amount of the allowance is the difference between the financial asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has less than its cost price for a period of 12 or more months, the financial asset is treated as impaired. In order to determine an appropriate fair value as at 30 June 2016 for its portfolio of financial assets, Kerang District Health obtained a valuation through a reputable financial institution. This value was compared against valuation methodologies provided by the issuer as at 30 June 2016. These methodologies were critiqued and considered to be consistent with standard market value techniques. In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets. Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes:

- realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss, or held for trading; - impairment and reversal of impairment for financial instruments at amortised cost; and - disposal of financial assets.; and - derecognition of financial liabilities.

Revaluations of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets.


30 June 2016 (k) Liabilities Payables Payables consist of:

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

Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract. Provisions Provisions are recognised when the Health Service has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision. When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. Employee Benefits This provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date. Wages and Salaries, Annual Leave, Sick Leave and Accrued Days Off Liabilities for wages and salaries, including non-monetary benefits, annual leave, accumulating sick leave and accrued days off which are expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, because the health service does not have an unconditional right to defer settlements of these liabilities. Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave and sick leave are measured at:

• Undiscounted value – if the health service expects to wholly settle within 12 months; or • Present Value – if the health service does not expect to wholly settle within 12 months.

Long Service Leave (LSL) The liability for LSL is recognised in the provision for employee benefits. Unconditional LSL (representing 10 or more years of continuous service) is disclosed in the notes to the financial statements as a current liability even where Kerang District Health does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of this current LSL liability are measured at:

• Undiscounted value – if the health service expects to wholly settle within 12 months; and • Present value – if the health service does not expect to wholly settle within 12 months.


30 June 2016 (k) Liabilities (continued) Conditional LSL is disclosed as a non-current liability - There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. Conditional LSL is required to be measured at present value. Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow. Termination Benefits Termination benefits are payable when employment is terminated before the normal retirement date or when an employee accepts voluntary redundancy in exchange for these benefits. The health service recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. Employee benefit on-costs Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits. Superannuation Liabilities Kerang District Health does not recognise any unfunded defined benefit liability in respect of the superannuation plans because the Health Service has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. (l) Equity Contributed Capital Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and FRD 119A Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions or distributions by owners have been designated as contributed capital are also treated as contributed capital. Property, Plant and Equipment Revaluation Surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets. Specific Restricted Purpose Surplus A specific restricted purpose surplus is established where the Health Service has possession or title to the funds but has no discretion to amend or vary the restriction and/or condition underlying the funds received. (m) Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer Note 18) at their nominal value and are inclusive of the goods and services tax (GST) payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet.


30 June 2016 (n) Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively. (o) Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flow. Commitments for expenditure and contingent assets and liabilities are presented on a gross basis. (p) Events after the reporting period Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Health Service and other parties, the transactions are only recognised where the agreement is irrevocable at or before the end of the reporting period. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting period and before the date the financial statements are authorised for issue, where those events provide information about conditions which existed in the reporting period. Note disclosure is made about events between the end of the reporting period and the date the financial statements are authorised for issue where the events relate to conditions which arose after the end of the reporting period and which may have a material impact on the results of subsequent reporting periods. (q) AASs issued that are not yet effective Certain new Australian accounting standards and interpretations have been published that are not mandatory for 30 June 2016 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable. As at 30 June 2016, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Kerang District Health has not and does not intend to adopt these standards early.


30 June 2016

Standard / Interpretation

Summary Applicable for reporting periods beginning on

Impact on Health Service's Annual Statements

AASB 9 Financial Instruments

This standard simplifies Requirements for the classification and measurement of financial asset, a hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred

Beginning 1 January 2018

The preliminary assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

The requirements for classifying and measuring financial liabilities were added to AASB 9. The existing requirements for the classification of financial liabilities and the ability to use the fair value option have been retained. However, where the fair value option is used for financial liabilities the change in fair value is accounted for as follows:

• The change in fair value attributable to changes in credit risk is presented in other comprehensive income(OCI); and

• Other fair value changes are presented in profit and loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss.


The assessment has identified that the amendments are likely to result in earlier recognition of impairment losses and at more regular intervals. Changes in own credit risk in respect of liabilities designated at fair value through profit and loss will now be presented within other comprehensive income (OCI).

AASB 2014-1 Amendments to Australian Accounting Standards [Part E Financial Instruments]

Amends various AAS’s to reflect the AASB’s decision to defer the mandatory application date of AASB 9 to annual reporting periods beginning on or after 1 January 2018 as a consequence of Chapter 6 Hedge Accounting, and to amend reduced disclosure requirements.


This amending standard will defer the application period of AASB 9 to the 2018-19 reporting period in accordance with the transition requirements.

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9

TAmends various AAS’s to incorporate the consequential amendments arising from the issuance of AASB 9.


The assessment has indicated that there will be no significant impact for the public sector.

AASB 15 Revenue from Contracts with Consumers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer.


The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.


30 June 2016

AASB 2015-8 Amendments to Australian Accounting Standards - Effective Date of AASB 15

This Standard defers the mandatory effective date of AASB 15 from 1 January 2017 to 1 January 2018


This amending standard will defer the application period of AASB 15 to the 2018-19 reporting period in accordance with the transition requirements.

AASB 2014-4 Amendments to Australian Accounting Standards – Clarrification of Acceptable Methods of Depreciation and Amortisation [AASB 116 & AASB 138]

Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to:

• Establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset;

• Prohibit the use of revenue-based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.


The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation.

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements [AASB 1, 127 & 128]

Amends AASB 127 Separate Financial Statements to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements.


The assessment indicates that there is no expected impact as the entity will continue to account for the investments in subsidiaries, joint ventures and associates using the cost method as mandated if separate financial statements are presented in accordance with FRD 113A.

AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities

The standard amends AASB 136 impairment of Assets to remove references to using depreciated replacement cost (DRC) as a measure for not-for-profit entities.


The assessment has indicated that there is minimal impact. Given the specialised nature and restrictions of public sector assets, the existing use is presumed to be the highest and best use (HBU), hence current replacement coat under AASB 13 Fair Value Measurement is the same as the depreciated replacement cost concept under AASB 136.

(r) Category Groups Kerang District Health has used the following category groups for reporting purposes for the current and previous financial years. Admitted Patient Services (Admitted Patients) comprises all acute and subacute admitted patient services, where services are delivered in public hospitals. Aged Care comprises a range of in home, specialist geriatric, residential care and community based programs and support services, such as Home and Community Care (HACC) that are targeted to older people, people with a disability, and their carers. Primary and Community Health comprises a range of home based, community care, counselling, physiotherapy, speech therapy, podiatry and occupational therapy. Off Campus, Ambulatory Services (Ambulatory) comprises all recurrent health revenue/expenditure on public hospital type services including palliative care facilities and rehabilitation facilities, as well as services provided


30 June 2016 (r) Category Groups (continued) under the following agreements: Services that are provided or received by hospitals (or area health services) but are delivered/received outside a hospital campus, services which have moved from a hospital to a community setting since June 1998, services which fall within the agreed scope of inclusions under the new system, which have been delivered within hospital's i.e. in rural/remote areas. Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from the department under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health funded community care units and secure extended care units. Other Services not reported elsewhere (Other) comprises services not separately classified above, including: Public Health Services including Laboratory testing, Blood Borne Viruses/ Sexually Transmitted Infections clinical services, Kooris liaison officers, immunisation and screening services, drugs services including drug withdrawal, counselling and the needle and syringe program, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and Community Initiatives also falls in this category group.

Kerang District Health

Notes to Financial Statements

30 June 2016

Note 2: Analysis of Revenue by Source

Total

2016 2016 2016 2016 2016 2016

$ $ $ $ $ $

Revenue from Operating Activities

Government Grants 6,011,166 2,447,733 729,350 2,290 92,846 9,283,385

Indirect contributions by Department of Health (7,971) 822 236 35 - (6,878) Patient and Resident Fees 796,553 698,432 211,523 - 717,131 2,423,639

Interest 51,569 23,896 6,871 1,015 - 83,351

Donations - - 1,988 - - 1,988 Loddon Mallee Rural Health Alliance 347,314 - - - - 347,314 Other Revenue from Operating Activities 49,750 8,038 7,883 83 - 65,754

Total Revenue from Operating Activities 7,248,381 3,178,921 957,851 3,423 809,977 12,198,553

Revenue from Non-Operating Activities

Catering - - - - 108,111 108,111

Property Income - - - - 101,819 101,819

Other - - - - 6,118 6,118

Total Revenue from Non-Operating Activities - - - - 216,048 216,048

Revenue from Capital Purpose IncomeCapital Redevelopment Funding 1,105,095 - - - - 1,105,095

Donations - - - - 301,097 301,097

Net Gain/(Loss) on Disposal of Non-Financial Assets - - - - 3,287 3,287

(refer note 2a)

Total Revenue from Capital Purpose Income1,105,095 - - - 304,384 1,409,479

- - - -

Total Revenue 8,353,476 3,178,921 957,851 3,423 1,330,409 13,824,080

Total

2015 2015 2015 2015 2015 2015

$ $ $ $ $ $

Revenue from Operating Activities

Government Grants 5,765,980 2,385,061 718,590 24,301 150,742 9,044,674

Indirect contributions by Department of Health 136,837 27,197 7,821 1,155 - 173,010

Patient & Resident Fees 588,280 715,036 110,728 - 759,249 2,173,293

Interest 57,808 26,787 7,703 1,138 - 93,436

Donations - - 130 - - 130

Loddon Mallee Rural Health Alliance 336,048 - - - - 336,048

Other Revenue from Operating Activities 112,688 23,730 5,313 1,192 - 142,923

Total Revenue from Operating Activities 6,997,641 3,177,811 850,285 27,786 909,991 11,963,514

Revenue from Non-Operating Activities

Catering - - - - 104,447 104,447

Property Income - - - - 102,134 102,134

Other - - - - 7,116 7,116

Total Revenue from Non-Operating Activities - - - - 213,697 213,697

Revenue from Capital Purpose IncomeCapital Redevelopment Funding 2,881,991 - - - - 2,881,991

Donations - - - - 187,906 187,906

Net Gain/(Loss) on Disposal of Non-Financial Assets - - - - 62,155 62,155

(refer note 2a)

Total Revenue from Capital Purpose Income2,881,991 - - - 250,061 3,132,052

Total Revenue 9,879,632 3,177,811 850,285 27,786 1,373,749 15,309,263

Indirect contributions by Department of Health:

Department of Health & Human Services makes certain payments on behalf of the Health Service. These amounts have been brought to account in

determining the operating result for the year by recording them as revenue and expenses.

Admitted

Patients

Residential

Aged care Aged Care

Primary

Health Other

Primary

Health Other

Admitted

Patients

Residential

Aged care Aged Care



30 June 2016

2016 2015

$ $

Proceeds from Disposals of Non-Current Assets

Buildings - 152,000

Motor Vehicles 42,964 -

Total Proceeds from Disposal of Non-Current Assets 42,964 152,000

Less: Written Down Value of Non-Current Assets

Sold

Buildings - 89,845

Motor Vehicles 39,677 -

Total Written Down Value of Non-Current Assets

Sold 39,677 89,845

Net gain on Disposal of Non-Financial Assets 3,287 62,155

Note 2a: Net Gain/(Loss) on Disposal of Non-Financial Assets



30 June 2016

Note 3: Analysis of Expenses by Source

Admitted

Patients

Residential

Aged Care Aged Care

Primary

Health Other Total

2016 2016 2016 2016 2016 2016

$ $ $ $ $ $

Expenses from Operating Expenses

Employee Expenses 4,236,395 2,936,715 889,459 91,049 471,199 8,624,817

Non Salary Labour Costs 812,999 - - - - 812,999

Computer Services 517,147 100,146 28,797 4,255 8,682 659,027

Administrative Costs 257,845 129,000 41,805 14,594 95,856 539,100

Supplies and Consumables 331,686 165,607 27,445 3,035 134,536 662,309

Other Expenses from Continuing Operations 122,123 264,894 80,561 15,060 540,951 1,023,589

Total Expenses from Operating Expenses 6,278,195 3,596,362 1,068,067 127,993 1,251,224 12,321,841

Expenses from Non-Operating Expenses

Depreciation - - - - 1,775,686 1,775,686

Loddon Mallee Rural Health Alliance - - - - 62,654 62,654

Specific Expenses (refer Note 3b) - - - - - -

Plant purchased for Redevelopment Costing less than

$1000 305,062 - - - - 305,062

Total Expenses from Non Operating Expenses 305,062 - - - 1,838,340 2,143,402

Total Expenses 6,583,257 3,596,362 1,068,067 127,993 3,089,564 14,465,243

Admitted

Patients

Residential

Aged Care Aged Care

Primary

Health Other Total

2015 2015 2015 2015 2015 2015

$ $ $ $ $ $

Expenses from Operating Expenses

Employee Expenses 3,965,516 3,046,336 873,945 84,066 627,830 8,597,693

Non Salary Labour Costs 864,060 - - - - 864,060

Computer Services 566,354 44,220 13,492 1,993 9,473 635,532

Administrative Costs 297,497 146,350 58,416 53,204 114,626 670,093

Supplies and Consumables 301,913 161,747 28,058 4,147 132,283 628,148

Other Expenses from Continuing Operations 162,342 259,673 79,655 12,894 503,683 1,018,247

Total Expenses from Operating Expenses 6,157,682 3,658,326 1,053,566 156,304 1,387,895 12,413,773

Expenses from Non-Operating Expenses

Depreciation - - - - 1,133,996 1,133,996

Loddon Mallee Rural Health Alliance - - - - - -

Specific Expenses (refer Note 3b) 298,792 - - - - 298,792

Plant purchased for Redevelopment Costing less than

$1000 25,021 - - - 25,021

Total Expenses from Non Operating Expenses 323,813 - - - 1,133,996 1,457,809

Total Expenses 6,481,495 3,658,326 1,053,566 156,304 2,521,891 13,871,582



30 June 2016

2016 2015

$ $

Commercial Activities

Property Expenses 143,671 157,639

Provision of Accommodation 30,452 46,470

Catering Services 160,445 125,378

TOTAL 334,568 329,487

Note 3a: Analysis of Expenses by Internally Managed and Restricted

Specific Purpose Funds



30 June 2016

2016 2015

$ $

Specific Expenes

Wages in relation to Capital Redevelopment - 298,792

TOTAL - 298,792

Note 3b: Specific Expenses

* Kerang District Health has identified additional operating costs associated with the 2015 redevelopment

works, including additional temporary staffing positions.



30 June 2016

Note 4: Depreciation

2016 2015

$ $

Depreciation

Buildings 1,380,592 786,457

Plant and equipment 109,996 87,779

LMRHA Assets 11,215 11,307

Computers and Communication 27,704 28,649

Medical Equipment 145,534 105,997

Motor Vehicles 81,287 90,831

Furniture and Fittings 19,358 22,976 Total Depreciation 1,775,686 1,133,996



30 June 2016

Note 5: Cash and Cash Equivalents

2016 2015

$ $

Cash on Hand 900 900 Cash at Bank 1,882,387 757,141 Bond held on Rental properties 1,160 2,560

Total Cash and Cash Equivalents 1,884,447 760,601

Represented by:

Cash for Health Service Operations (as

per Cash Flow Statement) 933,627 394,791

Cash for Loddon Mallee Rural Health

Alliance 8,280 795

Cash for Monies Held in Trust

- Cash at Bank 942,540 365,015

Total Cash and Cash Equivalents 1,884,447 760,601

For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-

term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of

change in value, net of outstanding bank overdrafts.



30 June 2016

Note 6: Receivables

2016 2015

$ $

CURRENT

Contractual

Trade Debtors - Health Service 123,485 140,893

Less Allowance for Doubtful Debts (5,000) (5,000)

Patient Fees 125,974 67,438

Accrued Investment Income 18,787 10,609

Accrued Revenue - Other 8,463 52,655

Receivables - Loddon Mallee Rural Health Alliance 7,054 1,260

278,763 267,855

StatutoryGST Receivable - Health Service 68,755 68,104 GST Receivable - Loddon Mallee Rural

Health Alliance 4,407 2,304

73,162 70,408

TOTAL CURRENT RECEIVABLES 351,925 338,263

NON CURRENT

StatutoryLong Service Leave - Department of

Health 355,270 365,015

355,270 365,015

TOTAL NON-CURRENT RECEIVABLES 355,270 365,015

TOTAL RECEIVABLES 707,195 703,278

(a) Movement in the Allowance for doubtful debts

2016 2015

$'000 $'000

Balance at beginning of year 5,000 5,000

Balance at end of year 5,000 5,000

(b) Ageing analysis of receivables

Please refer to note 17(b) for the ageing analysis of contractual receivables.

(c) Nature and extent of risk arising from receivables

Please refer to note 17(b) for the nature and extent of credit risk arising from contractual receivables.



30 June 2016

Note 7: Investments and other Financial Assets

2016 2015 2016 2015

$ $ $ $

CURRENTTerm Deposit

Aust. Dollar Term Deposits > 3 months 2,208,798 2,231,949 2,208,798 2,231,949

Total Current 2,208,798 2,231,949 2,208,798 2,231,949

TOTAL INVESTMENTS AND OTHER FINANCIAL

ASSETS 2,208,798 2,231,949 2,208,798 2,231,949

Represented by:

Investments - Health service 1,999,616 1,986,163 1,999,616 1,986,163

Investments - Loddon Mallee Rural Health Alliance 209,182 245,786 209,182 245,786

TOTAL INVESTMENTS AND OTHER FINANCIAL

ASSETS 2,208,798 2,231,949 2,208,798 2,231,949

(b) Ageing analysis of investments and other financial assets

Please refer to note 17(b) for the ageing analysis of investments and other financial assets.

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

Please refer to note 17(b) for the nature and extent of credit risk arising from investments and other

financial assets.

Operating Fund Total



30 June 2016

Note 8: Inventories

2016 2015

$ $

Pharmaceuticals

At cost 54,571 57,800

Catering Supplies

At cost 2,792 1,905

Housekeeping Supplies

At cost 4,189 2,858

Medical and Surgical Lines

At cost 15,637 10,670

Engineering Stores

At Cost 838 572

Administration Stores

At Cost 4,468 3,048

Loddon Mallee Rural Health Alliance

At Cost 863 -

TOTAL INVENTORIES 83,358 76,853



30 June 2016

Note 9: Prepayments and Other Assets

2016 2015

CURRENT $ $

Prepayments - Health Service 210,875 214,547

Prepayments - Loddon Mallee Rural Health Alliance 22,678 4,458

TOTAL CURRENT OTHER ASSETS 233,553 219,005

TOTAL OTHER ASSETS 233,553 219,005



30 June 2016

Note 10: Property, Plant and Equipment

2016 2015

$ $

Land

Land at Fair Value 780,000 780,000

Total Land 780,000 780,000

Buildings

Buildings Under Construction at cost 631,794 16,613,391

Buildings at Fair Value 31,688,853 11,188,853

Less Accumulated Depreciation 2,166,893 786,302

Total Buildings 30,153,754 27,015,942

Plant and Equipment

Plant and Equipment at Fair Value 815,508 796,297

Less Accumulated Depreciation 386,930 276,934

Total Plant and Equipment 428,578 519,363

Medical Equipment

Medical Equipment at Fair Value 1,470,906 1,081,843


Total Medical Equipment 838,572 595,043

Computers and CommunicationsLoddon Mallee Rural Health Alliance Assets at

Fair Value 36,734 36,250


Computers and Communication at Fair Value 314,109 259,194


Total Computers and Communications

Assets 95,942 79,124

Motor Vehicles

Motor Vehicles at Fair Value 589,242 584,749


Total Motor Vehicles 255,922 234,403

Furniture and fittings

Furniture and fittings at Fair value 244,924 223,799


Total Furniture & Fittings 64,713 62,946

TOTAL 32,617,481 29,286,821



30 June 2016

Note 10: Property, plant and equipment (continued)

Land Buildings Plant & Computers Medical Motor Furniture Work in Total

Equipment Equipment Vehicles & Fittings Progress

$ $ $ $ $ $ $ $ $

Balance at 1 July 2014 780,000 11,070,001 296,549 82,263 351,182 325,234 82,769 7,054,090 20,042,088

Additions - 208,853 310,593 25,127 349,858 - 3,153 9,559,301 10,456,885

Assets Transferred from Work in

Progress - - - - - - - - -

Disposals - (89,846) - (18,672) - - - - (108,518)

Loddon Mallee Rural Health Alliance - - - 19,055 - - - - 19,055

Revaluation Increments/(Decrements) - - - - - - - - -

Depreciation (note 4) - (786,457) (87,779) (28,649) (105,997) (90,831) (22,976) - (1,122,689)

Balance at 1 July 2015 780,000 10,402,551 519,363 79,124 595,043 234,403 62,946 16,613,391 29,286,821

Additions - - 19,211 54,914 389,063 142,483 21,125 4,518,403 5,145,199

Assets Transferred from Work in

Progress - 20,500,000 - - - - - (20,500,000) -

Disposals - - - - - (39,677) - - (39,677)

Loddon Mallee Rural Health Alliance - - - (10,392) - - - - (10,392)

Revaluation Increments/(Decrements) - - - - - - - - -

Depreciation (note 4) - (1,380,591) (109,996) (27,704) (145,534) (81,287) (19,358) - (1,764,470)

Balance at 30 June 2016 780,000 29,521,960 428,578 95,942 838,572 255,922 64,713 631,794 32,617,481

Land and buildings carried at valuation

An independent valuation of Kerang District Health Service's land and buildings was performed by the Valuer-General Victoria to determine the fair value of the land and buildings as at 30 June

2014. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in

an arm's length transaction.

Reconciliations of the carrying amounts of each class of asset for the entity at the beginning and end of the previous and current financial year is set out

below.



30 June 2016

Note 10: Property, plant & equipment (continued)

(c) Fair value measurement hierarchy for assets as at 30 June 2016

Level 1 (1)

Level 2 (1)

Level 3 (1)

Land at fair value $ $ $ $

Specialised land 780,000 - - 780,000

Total of land at fair value 780,000 - - 780,000

Buildings at fair value

Specialised buildings 29,521,960 - - 29,521,960

Total of building at fair value 29,521,960 - - 29,521,960

Plant and equipment at fair value

Plant equipment and vehicles at fair value

- Vehicles 255,922 - 255,922 -

- Plant and equipment 589,233 - - 589,233

- Medical Equipment 838,572 - - 838,572

Total of plant, equipment and vehicles at fair value 1,683,727 - 255,922 1,427,805

Assets under construction at fair value

Redevelopment 631,794 - - 631,794

Total assets under construction at fair value 631,794 - - 631,794

32,617,481 - 255,922 32,361,559

Level 1 (1)

Level 2 (1)

Level 3 (1)

Land at fair value $ $ $ $

Specialised land 780,000 - - 780,000

Total of land at fair value 780,000 - - 780,000

Buildings at fair value

Specialised buildings 10,402,551 - - 10,402,551

Total of building at fair value 10,402,551 - - 10,402,551


Plant equipment and vehicles at fair value

- Vehicles 234,403 - 234,403 -

- Plant and equipment 661,433 - - 661,433

- Medical Equipment 595,043 - - 595,043

Total of plant, equipment and vehicles at fair value 1,490,879 - 234,403 1,256,476

Assets under construction at fair value

Redevelopment 16,613,391 - - 16,613,391

Total assets under construction at fair value 16,613,391 - - 16,613,391

29,286,821 - 234,403 29,052,418

Note

(1) Classified in accordance with the fair value hierarchy, see Note 1

Carrying

amount as at

30 June 2016

Fair value measurement at end of reporting

period using:

There have been no transfers between levels during the period.

Carrying

amount as at

30 June 2015

Fair value measurement at end of reporting

period using:



30 June 2016

CROSS CHECKS

Vehicles

Plant and Equipment

The market approach is used for specialised land and specialised buildings although adjusted for the community service obligation (CSO)

to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore

these assets are classified as Level 3 under the market based direct comparison approach.

The CSO adjustment is a reflection of the valuer's assessment of the impact of restrictions associated with an asset to the extent that is

also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value

measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As

adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3.

Specialised land and specialised buildings

There were no changes in valuation techniques throughout the period to 30 June 2016.

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

For the health service, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the

associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised

buildings are classified as Level 3 for fair value measurements.

An independent valuation of the Health Service's specialised land and specialised buildings was performed by the Valuer-General

Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June

2014.

The Health Service acquires new vehicles and at times disposes of them before completion of their economic life. The process of

acquistion, use and disposal in the market is managed by the Health Service who set relevant depreciation rates during use to reflect

the consumption of the vehicles. As a result, the fair value of the vehicle does not differ materially from the carrying value (depreciated

cost).

Plant and equipment is held at carrying value (depreciated cost). When plant and equipment is specialised in use, such that it is rarely

sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market

evidence that the current replacement costs are significantly different from the original acquisiton cost, it is considered unlikely that

depreciated replacement cost will be materially different from the existing carrying value.



30 June 2016


(d) Reconciliation of Level 3 fair value 2016

$ $ $ $ $ $ $

Opening Balance 780,000 10,402,551 519,363 79,124 62,946 595,043 16,613,391

Purchases - - 19,211 54,914 21,125 389,063 4,518,403

Transfers in (out) - 20,500,000 - - - - (20,500,000)

Gains or losses recognised in net result

- Loddon Mallee Rural Health Alliance - (10,392) - - -

- Disposals - - - - - - -

- Depreciation - (1,380,591) (109,996) (27,704) (19,358) (145,534) -

Subtotal 780,000 29,521,960 428,578 95,942 64,713 838,572 631,794

Items recognised in other

comprehensive income

- Revaluation - - - - - - -

Subtotal - - - - - - -

Closing Balance 780,000 29,521,960 428,578 95,942 64,713 838,572 631,794

Note

Assets under

construction


Land Buildings

Plant and

equipment

Medical

equipmentComputers

Furniture &

Fittings



30 June 2016


(d) Reconciliation of Level 3 fair value 2015

$ $ $ $ $ $ $

Opening Balance 780,000 11,070,001 461,581 461,581 461,581 351,182 7,054,090

Purchases - 208,853 338,873 338,873 338,873 349,858 9,559,301

Transfers in (out) - - - - - - -

Gains or losses recognised in net result

- Loddon Mallee Rural Health Alliance 19,055 19,055 19,055 - -

- Disposals - (89,846) (18,672) (18,672) (18,672) - -

- Depreciation - (786,457) (139,404) (139,404) (139,404) (105,997) -

Subtotal 780,000 10,402,551 661,433 661,433 661,433 595,043 16,613,391

Items recognised in other comprehensive income

- Revaluation - - - - - - -

Subtotal - - - - - - -

Closing Balance 780,000 10,402,551 661,433 661,433 661,433 595,043 16,613,391

Note

Assets under

construction

Plant and

equipment

Plant and

equipment


Land Buildings

Plant and

equipment

Medical

equipment



30 June 2016Note 10: Property, plant & equipment (continued)

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

Specialised land

Market approach Community Service

Obligation (CSO)

adjustment

Specialised buildings

Depreciated

replacement cost

Direct cost per

square metre

Useful life of

specialised buildings


Depreciated

replacement cost

Cost per unit

Useful life of PPE

Vehicles

Depreciated

replacement cost

Cost per unit

Useful life of

vehicles

Medical equipment at fair value

Depreciated

replacement cost

Cost per unit

Useful life of cultural

assets

Valuation technique

Significant

unobservable

inputs



30 June 2016

Note 11: Payables

2016 2015

$ $

CURRENT

Contractual

Trade Creditors - Health Service 417,727 639,846

Payables - Loddon Mallee Rural

Health Alliance 47,241 32,190

Accrued Audit Fees 14,700 14,400

Accrued Expenses 42,667 36,886

Other - -

522,335 723,322

Statutory

FBT Payable - -

Department of Health - -

- -

TOTAL CURRENT 522,335 723,322

(a) Maturity analysis of payables

Please refer to Note 17c for the ageing analysis of contractual payables.

(b) Nature and extent of risk arising from payables

Please refer to note 17c for the nature and extent of risks arising from contractual payables.



30 June 2016

Note 12: Provisions

2016 2015

$ $

Current Provisions

Employee Benefits (i)

Annual Leave681,628 689,645

197,140 206,324

Long Service Leave

143,037 177,413

994,899 915,697

Accrued Salary and Wages/ADO's

299,926 218,174

- -

2,316,630 2,207,253

Provisions related to Employee Benefit On-Costs

- Unconditional and expected to be settled within 12

months (ii)

130,310 144,505

- Unconditional and expected to be settled after 12

months (iii)

115,556 128,144

245,866 272,649 Total Current Provisions 2,562,496 2,479,902

Non-Current Provisions

Employee Benefits (iii) 252,117 244,539

Provisions related to Employee Benefit On-Costs 26,346 25,554

Total Non-Current Provisions 278,463 270,093

Total Provisions 2,840,959 2,749,995

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costsUnconditional LSL Entitlements 1,256,850 1,207,340

Annual Leave Entitlements 1,004,591 1,030,007

Accrued Wages and Salaries 289,666 224,246

Accrued Days Off 11,389 18,309

2,562,496 2,479,902

Non-Current Employee Benefits and related on-

costs

Conditional Long Service Leave Entitlements (iii) 278,463 270,093

- -

Total Employee Benefits 2,840,959 2,749,995

On-Costs

Total Employee Benefits and Related On-Costs 2,840,959 2,749,995

(ii) The amounts disclosed are nominal amounts.

2016 2015

(b) Movements in provisions $'000 $'000

Movement in Long Service Leave:Balance at start of year 1,477,433 1,383,350

Provision made during the year 180,733 257,200 Settlement made during the year (122,853) (163,117) Balance at end of year 1,535,313 1,477,433

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

(iii) The amounts disclosed are discounted to present values.

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

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







30 June 2016

Note 13: Superannuation

2016 2015 2016 2015

$ $ $ $

(i) Defined benefit plans:

Health Super 20,739 25,903 1,534 2,080

Defined contribution plans:

Health Super 631,395 630,334 35,557 49,205

Hesta 98,269 113,071 8,005 8,071 Total 750,403 769,308 45,096 59,356

(i) The bases for determining the level of contributions is determined by the actuary of the defined

benefit superannuation plan.

Paid Contribution for the

Year

Employees of the Health Service are entitled to receive superannuation benefits and the Health

Service contributes to both the defined benefit and defined contribution plans. The defined benefit

plan provides benefits based of years or service and final average salary.

The Health Service does not recognise any defined benefit liability in respect of the plan because

the entity has no legal or constructive obligation to pay future benefits relating to its employees; its

only obligation is to pay superannuation contributions as they fall due. The Department of Treasury

and Finance discloses the State's defined benefits liabilities in its disclosure for administered items.

However superannuation contributions paid or payable for the reporting period are included as part

of employee benefits in the comprehensive operating statement of the Health Service. The name,

details and amounts expense in relation to the major employee superannuation funds and

contributions made by the Health Service are as follows:

Contributions outstanding at

Year End



30 June 2016

Note 14: Other Liabilities

2016 2015

$ $

CURRENT

Monies Held in Trust

- Patient Monies Held in Trust 500 450

- refundable Accommodation Deposits 942,040 364,565

Total Current 942,540 365,015

Total Monies Held in Trust

Represented by the following assets:

Cash Assets (refer to Note 5) 942,540 365,015

TOTAL 942,540 365,015



30 June 2016

Note 15: Equity

2016 2015

$ $

(a) Surpluses

Property, Plant and Equipment Revaluation Surplus

Balance at the beginning of the reporting period 5,112,575 5,112,575

- Land - -

- Buildings - -

Balance at the end of the reporting period* 5,112,575 5,112,575

* Represented by:

- Land 367,826 367,826

- Buildings 4,744,749 4,744,749

5,112,575 5,112,575

Restricted Specific Purpose Surplus

Balance at the beginning of the reporting period 105,000 105,000

Balance at the end of the reporting period 105,000 105,000

Total Surpluses 5,217,575 5,217,575

(b) Contributed Capital


Capital Contribution received from Victorian Government 4,629,985 7,435,671

Balance at the end of the reporting period 16,846,707 12,216,722

(c) Accumulated Surpluses/(Deficits)


Net Result for the Year (641,163) 1,437,681

Balance at the end of the reporting period 11,364,716 12,005,879

Total Equity at end of financial year 33,428,998 29,440,176

Revaluation Increment



30 June 2016

2016 2015

$ $

Net Result for the Year (641,163) 1,437,681

Non Cash Movements:

Depreciation 1,775,686 1,133,996

(297,475) (689,079)

(3,287) (62,155)

Movements in Assets and Liabilities:

(Increase)/Decrease in Receivables 20,997 (156,960)

(Increase)/Decrease in Prepayments 3,672 (182,708)

Increase/(Decrease) in Payables (216,689) (676,304)

Increase/(Decrease) in Provisions 90,964 119,881

Increase/(Decrease) in Inventories (5,641) (3,375)

NET CASH INFLOW/(OUTFLOW) FROM

OPERATING ACTIVITIES 727,064 920,977

Note 16: Reconciliation of Net Result for the Year to Net Cash

Inflow/(Outflow) from Operating Activities

Resources/Assets Provided by the Department of Health

Net (Gain)/Loss from Disposal of Non Financial Physical Assets

Movements included in Investing and Financing Activities:



30 June 2016

Note 17: Financial Instruments

(a) Financial risk management objectives and policies

Kerang District Health Service's principal financial instruments comprise of:

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Payables (excluding statutory payables)

Categorisation of financial instruments

Contractual

financial

assets -

loans and

receivables

Contractual

financial

liabilities at

amortised

cost

Total

2016$ $ $

Contractual Financial Assets

Cash and cash equivalents 1,884,447 - 1,884,447

Receivables

- Trade Debtors 249,459 - 249,459

- Other Receivables 29,304 - 29,304

Other Financial Assets -

- Term Deposits 2,208,798 - 2,208,798

Total Financial Assets (i) 4,372,008 - 4,372,008

Financial Liabilities

Payables - 522,335 522,335 Other financial liabilities

- Monies held in trust - 942,540 942,540

Total Financial Liabilities (ii) - 1,464,875 1,464,875

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of

measurement and the basis on which income and expenses are recognised, with respect to each class of financial

asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

The main purpose in holding financial instruments is to prudentially manage Kerang District Health Service's

financial risks within the government policy parameters.

Details of each categories in accordance with AASB 139, shall be disclosed either on the face of the balance sheet or

in the notes.

The Health Services main financial risks include credit risk and interest rate risk. The Health Service manages these

financial risks in accordance with its financial risk management policy.

The Health Service uses different methods to measure and manage the different risks to which it is exposed.

Primary responsibility for the identification and management of financial risks rests with the finance committee of

the Health service.



30 June 2016

Note 17: Financial Instruments

Contractual

financial

assets -

loans and

receivables

Contractual

financial

liabilities at

amortised

cost

Total

2015$ $ $

Contractual Financial Assets

Cash and cash equivalents 760,601 - 706,601

Receivables

- Trade Debtors 208,331 - 208,331

- Other Receivables 59,524 - 59,524

Other Financial Assets

- Term Deposits 2,231,949 - 2,231,949

Total Financial Assets (i) 3,260,405 - 3,206,405


Payables - 723,322 723,322 Other financial liabilities

- Monies held in trust - 365,015 365,015

Total Financial Liabilities (ii) - 1,088,337 1,088,337

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

Net holding

gain/(loss)

Net holding

gain/(loss)

2016 2015$ $

Financial Assets

Cash and Cash Equivalents (i) -

Loans and Receivables (i) -

Available for Sale (i) 83,352 94,435

Total Financial Assets 83,352 94,435


At Amortised Cost - -

Total Financial Liabilities - -

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

credit recoverable).

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

payable).

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net

gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue, plus or

minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any

impairment recognised in the net result.



30 June 2016

Note 17: Financial Instruments (continued)

(b) Credit risk

2016 $ $ $ $ $

Financial Assets

Cash and Cash Equivalents - - 1,884,447 1,884,447

Receivables

- Trade Debtors - - 249,459 249,459

- Other Receivables (i) - - - 29,304 29,304


- Term Deposit - - 2,208,798 2,208,798

Total Financial Assets - - 4,093,245 278,763 4,372,008

2015

Financial Assets

Cash and Cash Equivalents - - 760,601 760,601

Receivables

- Trade Debtors - - 208,331 208,331

- Other Receivables - - 59,524 59,524


- Term Deposit - - 2,231,949 2,231,949

Total Financial Assets - - 2,992,550 267,855 3,260,405

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

input tax credit recoverable).

Financial

institutions

(AAA credit

rating)

Government

agencies

(AAA credit

rating)

Financial

Institutions

(BBB credit

rating)

TotalOther

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

Credit risk arises from the contractual financial assets of the Health Service, which comprise cash and deposits, non-

statutory receivables and available for sale contractual financial assets. The Health Service’s exposure to credit risk arises

from the potential default of a counter party on their contractual obligations resulting in financial loss to the Health

Service. Credit risk is measured at fair value and is monitored on a regular basis.

Credit risk associated with the Health Service’s contractual financial assets is minimal because the main debtor is the

Victorian Government. For debtors other than the Government, it is the Health Service’s policy to only deal with entities

with high credit ratings of a minimum Triple-B rating and to obtain sufficient collateral or credit enhancements, where

appropriate.

In addition, the Health Service does not engage in hedging for its contractual financial assets and mainly obtains

contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the

policy for debtors, the Health Service’s policy is to only deal with banks with high credit ratings.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Health

Service will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default

payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.

Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the

financial statements, net of any allowances for losses, represents Kerang District Health Service's maximum exposure to

credit risk without taking account of the value of any collateral obtained.



30 June 2016


(b) Credit Risk (continued)

Ageing analysis of Financial Assets as at 30 June

Less than 1

Month

1-3 Months 3 months - 1

Year

1-5 Years

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

Financial Assets

Cash and Cash Equivalents 1,884,447 1,884,447 - - - - -

Receivables (i)

- Trade Debtors 249,459 219,298 12,769 15,443 1,948 - 5,000

- Other Receivables 29,304 29,304 - - - - -


- Term Deposit 2,208,798 2,208,798 - - - - -

Total Financial Assets 4,372,008 4,341,847 12,769 15,443 1,948 - 5,000

2015

Financial Assets

Cash and Cash Equivalents 760,601 760,601 - - - - -

Receivables (i)

- Trade Debtors 208,331 160,309 30,281 14,768 2,973 - 5,000

- Other Receivables 59,524 59,524 - - - - -


- Term Deposit 2,231,949 2,231,949 - - - - -

Total Financial Assets 3,260,405 3,212,383 30,281 14,768 2,973 - 5,000

There are no material financial assets which are individually determined to be impaired. Currently the Kerang

District Health Service does not hold any collateral as security nor credit enhancements relating to any of its

financial assets.

There are no financial assets that have had their terms renegotiated so as to prevent them from being past due

or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis table above discloses

the ageing only of contractual financial assets that are past due but not impaired.

Carrying

Amount

Past Due But Not ImpairedNot Past

Due and

Not

Impaired

Impaired

Financial

Assets

(i) Ageing analysis of financial assets must exclude the types of statutory financial assets (i.e GST input tax

credit)



30 June 2016


(c) Liquidity risk

- Term Deposits and cash held at financial institutions are managed with variable maturity dates and take into consideration cashflow requirements of the Health Service from month to month.

Carrying

Amount 1-3 Months 1-5 Years

2016 $ $ $ $ $ $


Payables 522,335 522,335 522,335 - - -

Other Financial Liabilities (i)

- Monies Held in Trust 942,540 942,540 - - 942,540 -

Total Financial Liabilities 1,464,875 1,464,875 522,335 - 942,540 -

2015


Payables 723,322 723,322 723,322 - - -


- Monies Held in Trust 365,015 365,015 - - 365,015 -

Total Financial Liabilities 1,088,337 1,088,337 723,322 - 365,015 -

Liquidity risk is the risk that the Health Service would be unable to meet its financial obligations as and when

they fall due. The Health Service operates under the Government's fair payment policy of settling financial

obligations within 30 days and in the event of a dispute within 30 days from the date of resolution.

The Health Service’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as

disclosed in the face of the balance sheet. The Health Service manages its liquidity risk as follows:

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

Maturity Dates

The following table discloses the contractual maturity analysis for Kerang District Health's financial liabilities.

For interest rates applicable to each class of liability refer to individual notes to the financial statements.

Maturity analysis of Financial Liabilities as at 30 June 2016

Nominal

Amount 3 months - 1

Year

Less than 1

Month



30 June 2016


(d) Market risk

Currency risk

Interest rate risk

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

Weighted Carrying

Average Amount Fixed Variable Non-

Effective Interest Interest Interest

Interest Rate Rate Bearing

2016 Rate (%) $ $ $ $

Financial Assets

Cash and Cash Equivalents 1.00 1,884,447 - 1,883,547 900

Receivables(i)

- Trade Debtors 249,459 - - 249,459

- Other Receivables 29,304 - - 23,510


- Term Deposit 2.86 2,208,798 2,208,798 - -

Total Financial Assets 4,372,008 2,208,798 1,883,547 273,869


Payables(i)

522,335 - - 522,335

Other Financial Liabilities

- Monies Held in Trust 942,540 - - 942,540

Total Financial Liabilities 1,464,875 - - 1,464,875

2015

Financial Assets

Cash and Cash Equivalents 2.38 760,601 - 759,901 900

Receivables(i)

- Trade Debtors 208,331 - - 208,331

- Other Receivables 59,524 - - 59,524


- Term Deposit 4.25 2,231,949 2,231,949 - -

Total Financial Assets 3,260,405 2,231,949 759,901 268,755


Payables(i)

723,322 - - 723,322


- Monies Held in Trust 365,015 - - 365,015

Total Financial Liabilities 1,088,337 - - 1,088,337

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

input tax credit and GST payable)

Interest Rate Exposure

Kerang District Health Service 's exposures to market risk are primarily through interest rate risk with only insignificant

exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks

are disclosed in the paragraphs below.

Kerang District Health Service is exposed to insignificant foreign currency risk through its payables relating to purchases of

supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign

currencies and a short timeframe between commitment and settlement.

Exposure to interest rate risk might arise primarily through the Kerang District Health Service's interest bearing liabilities.

Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial

liabilities, the health service mainly undertake financial liabilities with relatively even maturity profiles.

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of

changes in market interest rates.

The Health Service has minimal exposure to cash flow interest rates risks through its cash and deposits, term deposits and

bank overdrafts that are at floating rate.

The Health Service manages this risk by mainly undertaking fixed rate or non-interest bearing financial instruments with

realtively even maturity profiles, with only insignificant amounts of financial instruments at floating rate. Management has

concluded for cash at bank and bank overdraft, as financial assets that can be left at floating rate without necessarily

exposing the Health Service to significant bad risk, management monitors movement in rates as required.



30 June 2016


(d) Market risk (continued)

Sensitivity disclosure analysis

- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 4%;

- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2%

Carrying

Amount -1% -1% +1% +1% -1% -1% +1% +1%Profit Equity Profit Equity Profit Equity Profit Equity

2016 $ $ $ $ $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 1,884,447 (18,844) (18,844) 18,844 18,844 - - - -

Receivables

- Trade Debtors 249,459 - - - - - - - -

- Other Receivables 29,304 - - - - - - - -


- Term Deposit 2,208,798 (22,088) (22,088) 22,088 22,088 - - - -


Payables 522,335 - - - - - - - -

Other Financial Liabilities - - - - - - - - -

- Monies Held in Trust 942,540 - - - - - - - -

(40,932) (40,932) 40,932 40,932 - - - -

2015

Financial Assets

Cash and Cash Equivalents 760,601 (7,606) (7,606) 7,606 7,606 - - - -

Receivables

- Trade Debtors 208,331 - - - - - - - -

- Other Receivables 59,524 - - - - - - - -


- Term Deposit 2,231,949 (22,320) (22,320) 22,320 22,320 - - - -


Payables 723,322 - - - - - - - -


- Monies Held in Trust 365,015 - - - - - - - -

(29,926) (29,926) 29,926 29,926 - - - -

Interest Rate Risk Other Price Risk

Taking into account past performance, future expectations, economic forecasts, and management's knowledge

and experience of the financial markets, the Kerang District Health Service believes the following movements

are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)

The following table discloses the impact on net operating result and equity for each category of financial

instrument held by Kerang District Health Service at year end as presented to key management personnel, if

changes in the relevant risk occur.



30 June 2016


(e) Fair value

Comparison between carrying amount and fair value

Total Carrying

Amount

Fair value Total Carrying

Amount

Fair value

2016 2016 2015 2015

$ $ $ $

Financial Assets

Cash and Cash Equivalents 1,884,447 1,884,447 760,601 760,601

Receivables(i)

- Trade Debtors 249,459 249,459 208,331 208,331

- Other Receivables 29,304 29,304 59,524 59,524


- Term Deposit 2,208,798 2,208,798 2,231,949 2,231,949

Total Financial Assets 4,372,008 4,372,008 3,260,405 3,260,405


Payables 522,335 522,335 723,322 723,322


- Monies Held in Trust 942,540 942,540 365,015 365,015

- Other - - - -

Total Financial Liabilities 1,464,875 1,464,875 1,088,337 1,088,337

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

• Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid

markets are determined with reference to quoted market prices;

• Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the

financial asset or liability, either directly or indirectly; and

• Level 3 - the fair value is determined in accordance with generally accepted pricing models based on

discounted cash flow analysis using unobservable market inputs.

The Health Services considers that the carrying amount of financial instrument assets and liabilities recorded

in the financial statements to be a fair approximation of their fair values, because of the short-term nature of

the financial instruments and the expectation that they will be paid in full.

The following table shows that the fair values of most of the contractual financial assets and liabilities are the

same as the carrying amounts.

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

credit and GST payable).



30 June 2016

Note 18: Commitments

Kerang District Health currently has a capital commitment of approximately $2 million to complete the redevelopment

project. The funds for this project are held by the Department of Health and not Kerang District Health.



30 June 2016

Note 19: Contingent Assets and Contingent Liabilities

Contingent Assets

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



30 June 2016

Note 20: Operating Segments

2016 2015 2016 2015 2016 2015 2016 2015

$ $ $ $ $ $ $ $

REVENUE

External Segment Revenue 9,775,727 11,154,812 3,155,025 3,151,024 809,977 909,991 13,740,729 15,215,827

Intersegment Revenue - - - - - - - -

Total Revenue 9,775,727 11,154,812 3,155,025 3,151,024 809,977 909,991 13,740,729 15,215,827

EXPENSES

External Segment Expenses (9,408,967) (8,679,325) (3,708,872) (3,770,836) (1,347,404) (1,421,421) (14,465,243) (13,871,582)

Total Expenses (9,408,967) (8,679,325) (3,708,872) (3,770,836) (1,347,404) (1,421,421) (14,465,243) (13,871,582)

Net Result from ordinary

activities 366,760 2,475,487 (553,847) (619,812) (537,427) (511,430) (724,514) 1,344,245

Interest Expense - - - - - - - -

Interest Income 59,455 66,649 23,896 26,787 - - 83,351 93,436

Net Result for Year 426,215 2,542,136 (529,951) (593,025) (537,427) (511,430) (641,163) 1,437,681

OTHER INFORMATION

Segment Assets 17,107,124 15,400,617 4,949,770 4,454,480 - - 22,056,894 19,855,096

Unallocated Assets - - - 15,677,937 13,423,411 15,677,937 13,423,411

Total Assets 17,107,124 15,400,617 4,949,770 4,454,480 15,677,937 13,423,411 37,734,831 33,278,507

Segment Liabilities 858,260 848,055 665,114 657,760 - - 1,523,374 1,505,816

Unallocated Liabilities - - 2,782,460 2,332,516 2,782,460 2,332,516

Total Liabilities 858,260 848,055 665,114 657,760 2,782,460 2,332,516 4,305,834 3,838,332

Acquisition of Property, Plant

and Equipment and Intangible

Assets 4,813,301 9,101,826 1,895 1,895 3,017 3,017 4,818,213 9,106,738

Depreciation & Amortisation

Expense (1,629,650) (987,960) (112,510) (112,510) (33,526) (33,526) (1,775,686) (1,133,996)

Non Cash Expenses other than

Depreciation (7,700) 145,813 822 27,197 (62,654) - (69,532) 173,010

TOTALHEALTH SERVICES RACS OTHER SERVICES



30 June 2016

Note 20: Operating segments (continued)

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

Business Segments Services

Health Services Acute Hospital services

Aged Care Services

Primary Health Services

Residential Aged Care Nursing Home Facility

Geographical Segment

Kerang District Health Service operates predominantly in Kerang, Victoria. More than 90% of revenue, net

surplus from ordinary activities and segment assets relate to operations in Kerang, Victoria.



30 June 2016

Name of EntityPrincipal

Activity 2016 2015

% %

Loddon Mallee Rural Health Alliance

Information

Systems 4.09 4.05

2016 2015$ $

Current Assets

Cash and Cash Equivalents 8,280 795

Other Financial Assets 209,182 245,786

Receivables 11,461 3,564

Inventory 863 - Prepayments 22,678 4,458

Total Current Assets 252,464 254,603

Non Current Assets

Property, Plant and Equipment 8,663 19,055

Total Non Current Assets 8,663 19,055 Total Assets 261,127 273,658

Current Liabilities

Payables 42,845 25,419

Accrued Liabilities 4,396 6,771

Total Current Liabilities 47,241 32,190 Total Liabilities 47,241 32,190

Net Assets 213,886 241,468

2016 2015

$ $

Revenues

Grants 347,314 336,048

Total Revenue 347,314 336,048

Expenses

Information Technology and Administrative Expenses 301,027 285,639

Capital Expenses 62,654 -

Depreciation 11,215 11,307

Total Expenses 374,896 296,946 Net Result (27,582) 39,102

Contingent Liabilities and Capital Commitments

Kerang District Health interest in revenues and expenses resulting from jointly controlled operations and assets is detailed

below:

There are no known contingent liabilities for Loddon Mallee Rural Health Alliance as at the date of this report.

Ownership Interest

Kerang and District Health interest in assets employed in the above jointly controlled operatons and assets is detailed below. The amountsare

included in the financial statements and consolidated financial statements under their respective asset categories:

Note 21: Jointly Controlled Operations and Assets



30 June 2016

1/7/2015-30/6/2016

Governing Boards

S. Hall

L. Gray

L. Morris

G. Hastie

K. Laughlin

k. Jenkins

T. Adams

J Ginnivan

Accountable Officers

Mr R. Jarman

Remuneration of Responsible Persons

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

2016 2015 2016 2015

Income Band No. No. No. No.

$0 - $9,999 8 7 8 7

$160,000 - $169,999 1 1 1 1

Total Numbers 9 8 9 8

$174,806 $178,982 $170,710 $174,076

$ $ $ $

13,926 6,309 13,926 6,309

8,596 7,789 8,596 7,789

1/7/2015 - 30/6/2016

1/7/2015 - 30/6/2016

Mr L. Gray is a proprietor of Grays bakery and supplies bakery

products to the Health Service on normal comercial terms and

conditions.

Mr K. Jenkins is a director of the Northern Times and supplies

advertising services to the Health Service on normal

commercial terms and conditions.

Base Remuneration

Other Transactions of Responsible Persons and their

Related Parties.

Total remuneration received or due and receivable by

Responsible Persons from the reporting entity

amounted to:

Amounts relating to Responsible Ministers are reported in the

financial statements of the Department of Premier and

Cabinet

Total Remuneration

Period

1/7/2016-30/6/2016

Note 22: Responsible Persons Disclosures

The Honourable Jill Hennessy, Minister for Health, Minister for Ambulance Services

The Honourable Martin Foley, Minister for Housing, Disability and Aging, Minister for

Mental Health

1/7/2015 - 30/6/2016

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management

Act 1994 , the following disclosures are made regarding responsible persons for the reporting period.

Responsible Ministers:

1/7/2015 - 30/6/2016

1/7/2015 - 30/6/2016

1/7/2015 - 30/6/2016

1/7/2015 - 30/6/2016

1/7/2015 - 30/6/2016

1/7/2015 - 30/6/2016



30 June 2016

Note 22: Executive Officer Disclosures

Executive Officers' Remuneration

The numbers of executive officers, other than Ministers and Accountable Officers, and their total

remuneration during the reporting period are shown in the first two columns in the table below in

their relevant income bands. The base remuneration of executive officers is shown in the third and

fourth columns. Base remuneration is exclusive of bonus payments, long-service leave payments,

redundancy payments and retirement benefits.

2016 2015 2016 2015

No. No. No. No.

$110,000 - $119,999 2 3 2 3

Total 2 3 2 3

Total Remuneration 233,812$ 350,990$ 230,870$ 350,990$

Total Remuneration Base Remuneration



30 June 2016

Note 23. Remuneration of auditors

2016 2015

Victorian Auditor-General's Office $ $

Audit or review of financial statement 14,700 14,000

14,700 14,000



30 June 2016

Note 24: Events occurring after the Balance Sheet Date

There are no known events occurring after the balance sheet date as at the date of this report.


Attachment to the Financial Statements

30 June 2016

FINANCIAL DATA

Cash Management / Liquidity Indicators 2015-16 actuals

Cash Management / Liquidity

Creditors (days) 44.42

Debtors (patient fees) (days) 38.99

SUMMARY OF FINANCIAL RESULTS

2016 2015 2014 2013 2012

$ $ $ $ $

Total Expenses 14,465,243 13,871,582 14,010,244 13,860,850 12,869,150

Total Revenue 13,824,080 15,309,263 19,682,331 20,010,292 13,974,183

Net Result for Period

Surplus/(Deficit) (641,163) 1,437,681 5,672,087 6,149,442 1,105,033

Operating Result for Period

Surplus/(Deficit) 92,760 (535,484) (433,516) (359,200) 106,508

Accumulated Deficits 11,364,718 12,005,881 10,568,200 4,896,113 (1,253,329)

Total Assets 37,734,831 33,278,507 24,737,021 17,809,475 11,258,047

Total Liabilites 4,305,834 3,838,332 4,170,195 3,122,847 2,720,861

Net Assets 33,428,997 29,440,175 20,566,826 14,686,628 8,537,186

Total Equity 33,428,997 29,440,175 20,566,826 14,686,628 8,537,186

Kerang District Health's 2015/2016 full year net result was a deficit of $641,163, compared with a surplus of $1,437,681 for

the previous financial year.

The operating result was a surplus of $92,760 compared with a deficit of $535,484 for 2014/2015

The operating result excludes capital purpose income of $1,409,479 and depreciation/amortisation $1,775,686



30 June 2016

2016 2015$ $

Interest 83,351 93,435

Sales of Goods and Services 2,644,687 2,392,885

Grants 10,381,602 12,099,676

716,153 385,880

Total Revenue 13,825,793 14,971,876

Employee Expenses 8,624,817 8,978,095

Depreciation 1,775,686 1,122,689 Other Operating Expenses 4,064,740 3,490,566

Total Expenses 14,465,243 13,591,350

Net Results from transactions - Net Operating balance (639,450) 1,380,526

Net Gain on sale of non-financial assets 3,287 62,155

Other gains/losses from economic flows (5,000) (5,000)

Total other economic flows included in net result (1,713) 57,155

TOTAL RECEIVABLES (641,163) 1,437,681

Appendix A: Alternative presentation of comprehensive operating statement

Other current revenue


30 June 2016

SoP Part B - Victorian Healthcare Experience Survey reporting

Key performance indicator Target 2015-16 Result

Victorian Healthcare Experience

Survey - data submission

Full compliance Achieved


Survey – patient experience Quarter

1

95% positive

experience

96% Achieved



2

95% positive

experience

95% Achieved



3

95% positive

experience

98% Achieved

Documents

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