Annual Report 2014 - Parliament of Victoria€¦ · Peninsula Health’s operational and financial performance for the year ended 30 June 2014. It has been another year of solid achievement

Annual Report 2014

Contents

During the year a total of:

2,662 babies were born

12,467 children (0-16 years) attended our emergency departments

84,081 people attended our emergency departments

29,307 people were admitted to hospital from our emergency departments

2,607 children (0–16 years) were admitted to hospital for treatment1

417 babies were admitted to our Special Care Nursery

62,770 people were admitted to hospital for treatment2

16,443 people were admitted to hospital for surgery

4,702 people were admitted to hospital for emergency surgery

11,261 people were admitted to hospital for elective surgery

96,182 prescription items were dispensed by our Pharmacy

124,050 X-rays and medical imaging procedures were performed

27,876 inpatient rehabilitation bed days were provided

1,370 patients were admitted to our Hospital in the Home service

10,902 Hospital in the Home visits were carried out

53,748 hours of service were provided through Community Mental Health

133,739 hours of service were provided through Community Health

30,030 dental courses of care were provided through Community Health

1,809 drug & alcohol episodes of care were provided through Community Health

3,461 occasions of service were provided at our various diabetes clinics

Fast facts 2013/14

Introduction: Chairperson and Chief Executive 1

Report of Operations 3

Responsible Bodies Declaration 3

Our Health Service 3

Objectives and functions of Peninsula Health 3

Services provided by Peninsula Health 5

Governance and organisational structure 7

Strategic priorities 2013/14 10

Financial summary 14

Performance priorities 14

Activity and funding 16

Other disclosures 17

Disclosure Index 23

Financial Statements Inside back cover

Above: Key members of the Frankston Hospital F3/Emergency Department development project team. Clockwise from left: Frank Michienzi, Johnstaff; Leon Townsend, Cockram; Gordon Findlay, Johnstaff; John Powell, Lyons; Geoff de Campo, Peninsula Health; Paul Ormrod, Peninsula Health; Sharyn Hayles, Peninsula Health; Wimal Kirinde, Peninsula Health.

Front cover: The Frankston Hospital F3/Emergency Department development is currently under construction, and will open early in 2015.

1. Includes same children admitted multiple times2. Excludes Mental Health and Sub Acute admissions

Peninsula Health Annual Report 2014 Page 1

Chairperson & Chief ExecutiveIt is a pleasure to present the Annual Report 2013/14 to inform Government, the community and our staff about Peninsula Health’s operational and financial performance for the year ended 30 June 2014.

It has been another year of solid achievement. Not only have Peninsula Health staff provided care to more people than ever before, services have been enhanced and expanded, and there has been a pleasing improvement in meeting key performance goals. A small financial surplus, which is being reinvested in equipment, was also achieved.

In response to feedback, Frankston Hospital’s Emergency Cardiac Angiography services were made available 24 hours a day, seven days a week. The extension of these services allows for the treatment of patients with cardiac related issues outside of normal hours, rather than being sent to other health services as was done in the past.

Presentations to the Emergency Departments at Frankston and Rosebud Hospitals continued to grow, with 84,081 people attending our two emergency departments.

Rosebud Hospital’s Emergency Department continued to exceed all Department of Health performance benchmarks. A whole of Health Service program to provide timely care resulted in a significant reduction in waiting times at Frankston Hospital’s Emergency Department. This improvement was achieved at the same time that presentations increased by 8.2% to more than 63,000. Key achievements at 30 June 2014 included:

> Ambulance off stretcher time reduced to 35 minutes compared with 75 minutes in June 2013

> Average length of stay in the Emergency Department was just 3 hours 53 minutes compared with 6 hours 42 minutes in June 2013

> Since 27 August 2013, no patient has spent 24 hours in the Emergency Department waiting for a hospital bed

> The 4 hour Emergency admission to ward has improved from 28% to 50%, and

> The 4 hour Emergency discharge to home has improved to 77% from 59%.

Peninsula Health also performed strongly in the delivery of Elective Surgery. During the year there were a record 6,597 admissions, and the Elective Surgery waiting list was reduced from 1,872 in June 2013 to 1,380 in June 2014, our lowest ever waiting list figure. Hospital Initiated Postponements of Surgery were only 4.9% against a Department of Health target of 8%.

Mental Health, Community Health and Sub-Acute services also continued to see more patients and performed well against state-wide targets, with many services exceeding expectations.

Capital Works

There was substantial progress on capital projects worth more than $100 million.

In April, the $25 million addition to The Mornington Centre opened. This included a 30-bed inpatient geriatric evaluation and management unit, together with allied

health support services including 14 consulting rooms and improved areas for our Chronic Pain Services, Continence Service, Speech Pathology, and Cognitive, Dementia and Memory Services.

In June, Stage 1 of Peninsula Health’s enhanced Cancer Services program opened. This increased the number of oncology chairs from 11 to 15, and provided additional treatment rooms and a new reception and waiting area.

Other projects due to commence construction include:

> A $500,000 expansion to the Rosebud Hospital Dental Services which will include two additional dental chairs

> At Rosebud Hospital, a successful community fundraising program which raised $1.6 million has enabled work to commence on a refurbishment and the installation of a CT scanner

> Bayview House, at the front of Rosebud Hospital, is being refurbished and expanded at a cost of $500,000 to provide new meeting rooms and staff and client amenities

> A $700,000 refurbishment of Palliative Care Services at Golf Links Road made possible by a major bequest will comprise a new bariatric bedroom, expanded family meeting and interview room, and an expanded administration area.

At Frankston Hospital, the $82 million capital project to build three new wards and a new Emergency Department is well advanced. The new Emergency Department will be two and a half times as large as the existing Department and amenities in ward areas will be significantly enhanced. The F3 expansion will open to patients early in 2015.

Residential Aged Care

In the aged care sector, Peninsula Health has moved to enact Government policy on transferring Residential Care facilities at Carinya and Michael Court Hostel to private or not for profit providers. This process will aim to expand the number of residential aged care beds in Frankston and the Mornington Peninsula.

Technology

Peninsula Health continues to build a strong clinical Information Technology system, known internally as Clover, to support our clinical capability. Implementation phases have included electronic ordering and results viewing for Pathology and Radiology, electronic discharge summaries, e-prescribing and e-administration.

This four-year project has delivered many early benefits including:

> A decrease in medication errors> No medication errors due to legibility issues> Improved documentation of allergy status > GPs and inpatient wards receive e-discharge summaries

from the Emergency Departments and acute Mental Health units

> Improved electronic discharge summary completion rates > Ability to access the one drug chart by multiple users, and> Enhanced Pathology and Radiology efficiencies.

Introduction

Page 2 Peninsula Health Annual Report 2014

The Clover Clinical Information System received the 2013 Quality Improvement Award from the Australian Council on Healthcare Standards. This prestigious award for Clinical Excellence and Patient Safety recognises Peninsula Health’s focus on Quality and Safety and our culture of innovation and improvement.

Education and the Community

Peninsula Health continues to enhance quality through our commitment to professional and academic pursuits.

Following establishment of the Peninsula Clinical School, Peninsula Health has increased the number of medical student placements from Monash University from 102 in 2011 to 115 in 2014. In addition, 62 nurses are completing their graduate nursing year.

During the year a great deal was achieved through programs to improve access and delivery of programs for the Aboriginal and Torres Strait Islander community. A Reconciliation Action Plan was developed following extensive consultation, and implementation of the plan is being led by the ATSI Health Steering Committee.

For the fifth year in a row, Peninsula Health volunteers were recognised in the Minister for Health Volunteer Awards. Our Tai Chi Volunteer Leaders were presented with an award by The Honourable David Davis MLC, Minister for Health, for their fantastic volunteer work within the community.

Peninsula Health is privileged to have over 800 volunteers who are a key component of our teams.

The community is represented and well served by an active Community Advisory Committee which is chaired by a consumer. In turn, this committee is informed by 13 Community Advisory Groups. This year, Claire Duffus and Gus De Groot, who have each served 10 years on the Community Advisory Committee, were awarded the inaugural role of Honorary Community Advisory Committee Ambassadors for Peninsula Health.

Staff Recognition

The service and achievements of staff were recognised through Peninsula Health’s enhanced Reward and Recognition program. More than 200 individuals were nominated by their peers with awards presented to 11 teams and 83 individuals. Two Chairperson’s awards were presented to teams, and six presented to individuals.

Recipients of the Chairperson’s award were:

The Operations Directors Team for leadership, dedication and commitment to achieving quality patient care while delivering on targets

The Dental Services Team which is widely recognised as a leader in developing innovative, person centred Dental care

Dr Gary Braun – Clinical Director of Medicine for his work investigating and implementing changes to practice that improve patient experience.

Maureen Habner for exceptional leadership in overseeing education and research for nursing, and leading the nursing profession at Frankston Hospital in her role as Chief Nurse

Dr William Slater – a physician who tirelessly supports Physician Trainees and Registrars in their education

Trish O’Neill – Nurse Unit Manager of 5GS for excellent leadership on her ward and positive involvement with volunteers

Paul Miller – a Registered Nurse in the Elective Surgery Short Stay Unit who was nominated 35 times in 9 months by consumers as an outstanding nurse, and

Wimal Kirinde – a member of our Facilities Management Team, who consistently goes above and beyond in all aspects of his work.

Clinical Services Plan

The Clinical Services Plan 2015-2025 is being developed to shape the services we provide to Frankston and the Mornington Peninsula. The plan will be completed early in 2015.

During the year, the Board recognised the many achievements of Dr Sherene Devanesen, as she moved on after 13 years as Chief Executive of Peninsula Health to take up a senior role at Yooralla where she is pursuing her commitment to improve the lives of people with disabilities. In early August, we welcomed a new Chief Executive, Ms Sue Williams, who is a skilled health care professional with experience in both public and private hospital systems.

The Board would like to recognise the outstanding contributions of the senior management team and Executive Director Finance, Mr David Anderson, for his leadership as Acting Chief Executive until Ms Williams’ arrival. The Board would also like to thank Mrs Marcia Coleman for her service and contributions to Peninsula Health as a Director over the past three years.

The Health Service faces a challenging future, requiring us to be prudent with our finances and resources while achieving growth, reform and change. The ongoing development of Peninsula Health provides us with the opportunity to redevelop the way we deliver care more efficiently and effectively.

The Board and staff at every level are grateful to the thousands of individuals and many local businesses and organisations who generously donated almost $2.5 million to Peninsula Health over the last 12 months

Special thanks are extended to the staff of Peninsula Health, our volunteers, and our auxiliary members. Their continuing support will enable the Health Service to meet the needs of the community.

Ms Nancy Hogan Ms Sue WilliamsChairperson Chief ExecutivePeninsula Health Peninsula HealthAugust 2014 August 2014

Introduction


Responsible Bodies DeclarationIn accordance with the Financial Management Act 1994, we are pleased to present the Report of Operations for Peninsula Health for the year ending 30 June 2014.

Ms Nancy Hogan Ms Sue WilliamsChairperson Chief ExecutivePeninsula Health Peninsula Health19 August 2014 19 August 2014

Our Health ServiceOur visionBuilding on our strong foundations of teamwork and continuous improvement we will be a recognised leader in the provision of person centred care.

Our missionIn partnership, building a healthy community.

Our valuesService

We serve our diverse community by providing accessible, responsive and personalised care.

Integrity

We are open, honest, just, reasonable and ethical in our relationships.

Compassion

We understand the needs of those we serve and respond with care.

Respect

We champion the rights of individuals to be in control of their lives and to be treated as equals.

Excellence

We hold ourselves accountable for achieving the best health outcomes for individuals and our community.

Objectives and functions of Peninsula HealthPeninsula Health is one of 15 metropolitan public health services in Victoria. We embrace an integrated and collaborative view of health, working with community and service partners to promote health and healthy lifestyles and to plan for the future needs of the local community.

Peninsula Health is accountable to the Hon David Davis MLC, Minister for Health and Ageing; and the Hon Mary Wooldridge MP, Minister for Mental Health, Community Services, Disability Services and Reform.

During the year Peninsula Health provided:

> Emergency care at Frankston Hospital and Rosebud Hospital

> Acute care at Frankston Hospital and Rosebud Hospital

> Sub acute care (aged care, rehabilitation and palliative care) at Frankston, Mornington and Rosebud

> Residential care at Frankston and Seaford> Mental Health services at Frankston, Hastings and

Rosebud> Community Health services at Frankston, Hastings,

Mornington and Rosebud.

Peninsula Health is a major teaching centre, and works closely with Monash University and Deakin University to train health professionals in medicine, nursing and allied health. We also have links with other universities in postgraduate studies.

Peninsula Health provides a statewide personal alarm service to 31,200 clients through our MEPACS Service.

Peninsula Health employs 5,101 people and is supported by more than 800 volunteers and auxiliary members.

Our catchmentPeninsula Health is the major health care provider for the communities in the local government areas of Frankston City Council, Mornington Peninsula Shire, and parts of the City of Kingston. The catchment is a mix of urban and semi-rural areas of about 900 square kilometres stretching from Seaford, Carrum and Frankston, about an hour’s travel from the Melbourne CBD; south across the Mornington Peninsula to Sorrento and Portsea at the southern tip; and Cape Shank, Point Leo and the Port of Hastings in the east. The area is bound by sea on three sides and is one of Victoria’s major holiday and retirement destinations. Most of the population is clustered along the coastline of Port Phillip Bay. Central Frankston functions as the major regional retail and commercial centre, servicing outer southern Melbourne and the Mornington Peninsula. Much of the rural area is used for farms, orchards and market gardens.

The area also includes a number of vulnerable communities characterised by low income residents, high unemployment rates and poor access to services due to the lack of public transport and the costs of petrol and car ownership. Accessibility is a major factor in service provision as most of the catchment area is at least an hour’s drive from central Melbourne, and public transport is limited in some sections. This can contribute to social isolation, particularly for vulnerable communities and elderly residents, and limited ability to access health care, employment and education.

PopulationThe population of Peninsula Health’s catchment has grown to over 300,000 people, with a continued seasonal influx up to 100,000 visitors during summer. This influx places great pressure on general practice, primary health care, and accident and emergency department services.

The population is growing at a faster rate than most other regions in Victoria, with a growth rate of 18.9% predicted over the next decade. This compares to a growth rate of 13.6% in Melbourne and 11.8% in Victoria.

Overall, the proportions of people below 60 years of age are similar to the rest of Australia. However, all age groups 60 years and over have higher proportions in the catchment than the Victorian average. The proportion of people aged over 65 years is 16.9%, which is higher than the Victorian average of 13.8%. The Mornington Peninsula Shire has one

Report of Operations


of the highest concentrations of people aged 65 years and older in Australia. In the 15 years from 2011-2026, the 75-79 year old age group is expected to grow by 78% and the 85+ age group by 66%.

Across the catchment there are slightly more children 0-14 years of age than people aged 65+ years of age, and 32% of the population is aged less than 25 years.

These demographics, which show peaks in population at ages that require the most health care, place great demands on the emergency department services, acute health, aged care and rehabilitation services offered by Peninsula Health.

Language and diversity In 2011, there were 1,981 identified Aboriginal and Torres Strait Islander people (0.7%) living in the catchment, almost equally distributed between Frankston City Council and Mornington Peninsula Shire. Smaller area analysis shows an Aboriginal and Torres Strait Islander density higher than the Victorian average (7.1 per 1,000) exists in Frankston North (12.7 per 1,000), Hastings/Somers (12.5 per 1000) and Rosebud/McCrae (10.3 per 1000). The largest proportion of the Aboriginal and Torres Strait Islander population living in the catchment are aged 25 years or younger.

A total of 74.7% of people living in the catchment were born in Australia, and a further 11.8% born overseas in English speaking countries. Only 6.7% of people were born in a non-English speaking country and have resided in Australia for more than five years. Of the residents in the catchment from predominantly non-English speaking countries, the main countries of origin are Germany (0.7%), The Netherlands (0.7%), Italy (0.6%) and Greece (0.4%).

Health status of our catchmentEvidence shows that people in the most disadvantaged social groups are far more likely than those in higher socioeconomic groups to have long-term physical or mental health problems. They may be less able to gain an education or maintain a job to retirement, and are more likely to die at a younger age1. These differences are called ‘health inequalities’. Some health inequalities are avoidable.

The top health risk factors identified for the communities served by Peninsula Health from a range of sources, including regional burden of disease data and the Department of Health, are:

Tobacco related health conditions

Smoking rates are higher than the Victorian average in many parts of the catchment, as are deaths from lung cancer. Together, Frankston and the Mornington Peninsula have smoking rates of 24%, which is higher than the Victorian average of 19%. Rates of chronic obstructive pulmonary disease (COPD) are higher across the catchment than for the rest of Victoria and Australia.

Physical inactivity

Approximately 30% of adults living in Frankston City Council and Mornington Peninsula Shire do not meet the recommended physical activity guidelines, which is similar to the Victorian average. The rates of physical inactivity

for adolescents (11% in Frankston City Council and 16% in Mornington Peninsula Shire) do not differ significantly from the Victorian average of 12%.

High blood pressure

The rates of hypertensive disease across the catchment are higher than for Victoria and Australia.

Obesity

The rate of adults living in the Peninsula Health catchment who are considered overweight or obese is similar to the Victorian averages. This differs significantly for 22% of adult women living in Frankston LGA who are considered obese, compared with the Victoria rate of 16.1%. On a positive note, the percentage of adult men living in Mornington Peninsula Shire who are overweight is 25.8% compared with 39.9% for Victoria.

Alcohol and illicit drug use

Self-reported drinking behaviour differs across the catchment. Mornington Peninsula Shire residents report higher rates of recent drinking than Frankston and Victoria, from young people (15-17 years) through to adulthood. In 2008 and 2012, Victorian Population Health Surveys reported Mornington Peninsula residents (53.9%) were more likely than Frankston residents (46.8%) and Victorians (45.2%) to be exposed to short-term alcohol risk. Frankston residents however have a higher proportion of the most severe cases of alcohol abuse, placing themselves at high risk of long term consequences.

Alcohol is the most prevalent type of drug overdose requiring ambulance call-outs in both Frankston and the Mornington Peninsula. This is followed by Benzodiazepine, for which Frankston has been ranked 1st or 2nd for the highest number of ambulance call outs in Victoria, along with anticonvulsant, antidepressant, antipsychotic and opioid analgesics. The number of call outs for opioid analgesics in Frankston has been particularly high, and this problem is only slightly less severe in Mornington Peninsula Shire.

Rates of drug-related offences in Frankston have increased by 40%, which is 1.24 times faster than the Victorian average increase. In Frankston, changes in volume and rate between 2011/12 to 2012/13 are predominantly attributable to drug possession and use, rather than drug cultivation, manufacturing and trafficking. The situation is reversed in Mornington Peninsula Shire.

Poor diet

Around 50% of Frankston and Mornington Peninsula residents consume the recommended serves of fruit and vegetables; while 18% of Mornington Peninsula residents report consuming soft drinks every day (1.5 times higher than the Victorian average).

Only 21% of adolescents in Mornington Peninsula and 13% of adolescents in Frankston report eating the minimum recommended serves of fruit and vegetables each day. In the Southern Metropolitan Region, 38% of children aged 4 to 12 report eating the minimum recommended serves of both fruit and vegetables each day.

The growing issue of food insecurity contributes to poor diet in the catchment. Food insecurity is when someone has run out of food and cannot afford to buy more. In 2009, 11.6% of


1. Social Determinants of Health Alliance: http://socialdeterminants.org.au/


persons living in Frankston had experienced food insecurity, compared to 6.9% in the Southern Metro Region, 6% in the Mornington Peninsula Shire, and a Victorian average of 6%.

Poor diet and food insecurity impact on the incidence of Type 2 Diabetes, with 7% of Frankston residents reported as having Type 2 Diabetes (1.5 times higher than the Victorian average).

Intimate partner violence

The burden of disease impact on women of intimate partner violence is more than the impact of alcohol, overweight and tobacco combined. The impact of violence extends not only to the women, but the lifelong health and mental health consequences for children are also well documented.

Frankston City Council is ranked top of all metropolitan LGAs for incidents of family violence, and the 3rd highest in Victoria.

Mornington Peninsula has the 10th highest rate (in raw data). When population data is factored in, it has the 27th highest rate in Victoria of family violence incidence.

Peninsula Health is involved in the development of a catchment-wide strategy to prevent violence against women and children.

Other factors that impact on health inequalities and the wellbeing of local residents include:

Early school leavers

Frankston has higher rates of disengagement (no involvement in work or education) of young men and women aged 15 to 24 (estimated at 14.8%) than the rest of Victoria (10.7%). Frankston has lower educational attainment than comparative metropolitan areas and many workers are employed in work that is vulnerable to economic downturns. Youth disengagement has negative health and social consequences including low health literacy, social exclusion, poor mental health and higher risks of teenage pregnancy as well as violence and crime.

Poor mental health

Rates of poor mental health are higher than average in Frankston (West) and the Mornington Peninsula (South). The Frankston-Mornington Peninsula Medicare Local Community Needs Assessment 2014 found that mental health, domestic violence and drug and alcohol abuse were cited as key determinants for poor health outcomes.

One parent families

The rate of children under 15 years living in single parent families and jobless families in Frankston City Council (19.6%) and Mornington Peninsula Shire (12.7%) is significantly higher than for Victoria. In 2011, there were 3,431 children under 15 years living in jobless families in Frankston City Council, and 2,638 children under 15 years living in jobless families in Mornington Peninsula Shire.

Crime rates

In 2010/11, crime rates related to crimes against a person and crimes against property were both higher in Frankston City Council compared to the Southern Metropolitan Region and Victorian averages. In Mornington Peninsula Shire, crime rates for both offences were lower than the Victorian average.

Family violence incidents, drug usage and possession offences and total offences per 1,000 population were all higher in Frankston City Council than the Victorian and Mornington Peninsula Shire averages.

Lower breastfeeding rates

Breastfeeding is a measure linked to the prevention of health problems in children. Rates for children fully breast-fed at 6 months of age are significantly lower for Frankston City Council (30.4%) than for the Southern Metro region (40%), Victorian (38.9%) and Metropolitan Melbourne rates (39.7%). Breastfeeding rates for Mornington Peninsula Shire are slightly lower at 35.1%.

Gambling losses

In 2012/13, Frankston West SLA had the highest number of electronic gaming machines (EGMs) in the catchment (417), followed by Mornington Peninsula South (364). Frankston experienced an annual amount lost by players of $59,400 per EGM compared with Mornington Peninsula ($50,100 per EGM).

Services provided by Peninsula HealthWorking in partnership with other key organisations, services and our community, Peninsula Health is committed to providing high quality health care services that are integrated, easily accessible, caring, and person centred.

For further information about the services provided by Peninsula Health, see www.peninsulahealth.org.au.

Aged CareAdvance Care PlanningAged Care Assessment ServiceCognitive, Dementia and Memory ServiceContinence ClinicFalls Prevention ServiceGeneral Rehabilitation Review ClinicGeriatric Evaluation & Management Inpatient ServicesGeriatric MedicineGeriatric Medicine Clinic Restorative CareTransition Care Program

Allied Health NeuropsychologyNutrition & DieteticsOccupational TherapyPastoral CarePhysiotherapyPodiatryPsychologySocial WorkSpeech Pathology

Clinical Systems

Community HealthAboriginal & Torres Strait Islander HealthAddiction MedicineAged Care ServicesChildren & Family ServicesChronic Disease ServicesCommunity KitchensCounselling



Dental ServicesDiabetes EducationDrug & Alcohol ServicesExercise ProgramsHealth PromotionHome & Community CareHomeless OutreachHospital Admission Risk Program (HARP)Men’s Behaviour Change ProgramNeedle Syringe ProgramsNutritionOccupational TherapyPhysiotherapyPodiatrySelf Help and Support GroupsSexual HealthStop SmokingYouth Services

Community Participation

Continuing Education and Development UnitNursing Research

Emergency MedicineFrankston Hospital Emergency DepartmentRosebud Hospital Emergency Department Emergency Department Short Stay Unit

Medical ServicesAcute Care of the ElderlyAmbulatory ServicesCardiology (Heart)Clinical Haematology (Blood)Endocrinology & Diabetes (Hormones)Gastroenterology (Stomach and Intestines)General MedicineHospital in the Home (HITH)Infectious DiseasesIntensive Care MedicineMedical Oncology (Cancer)Neurology (Brain and Nerves)Pain MedicinePalliative MedicineRenal Medicine (Kidneys)Respiratory & Sleep MedicineRheumatology

Mental Health ServicesConsultation Liaison ServiceEnhanced Crisis Assessment Treatment Team and Psychiatric TriageMental Health Hospital Admission Reduction Program (MH-HARP)

AgedAged Acute In-Patient UnitAged Persons Mental Health TeamCarinya Residential Aged Care Unit Intensive Community Treatment TeamMichael Court Residential Aged Care Hostel

AdultAcute Inpatient UnitAdult Prevention & Recovery Care Service (APARC)Community Care UnitCommunity Mental Health Service


Youth (16 to 25 years)Youth Mental Health TeamYouth Prevention & Recovery Care Service (YPARC)

MEPACS Personal Alarm Call Service

Paediatrics (Children’s Health)Child & Adolescent HealthNeonates (Newborn babies)Home & Community CareAsthma EducationPaediatric Integrated Cancer Service

Pathology, Haematology and Microbiology

Radiology and Nuclear MedicineCT (Computerised Tomography)FluoroscopyInterventional RadiologyMRI (Magnetic Resonance Imaging)Nuclear MedicinePlain FilmUltrasound

RehabilitationElective Orthopaedic Pathways ProgramMovement Disorders ProgramNeuro Review ClinicProsthetics ClinicRehabilitation Inpatient Services Spasticity ClinicStroke Detours ProgramChronic Pain Management ServiceCommunity Rehabilitation Programs

Surgical and Anaesthetic ServicesAnaesthesia & Perioperative MedicineGastrointestinal EndoscopyGeneral SurgeryMaxillo Facial SurgeryOrthopaedic SurgeryOtolaryngology and Head & Neck Surgery (Ear, Nose and Throat)Plastic & Reconstructive Surgery (Skin)Thoracic Surgery (Chest)Urology (Bladder and Kidneys)Vascular Surgery (Veins and Arteries)

Women’s HealthGynaecologyObstetrics

Services not provided by Peninsula HealthCardiac SurgeryChild PsychiatryDermatologyMajor TraumaNeonatal & Paediatric Intensive Care Neuro SurgeryOphthalmologyOrgan TransplantationSpinal RehabilitationSpinal Surgery



Governance and organisational structureBoard governancePeninsula Health’s Board of Directors is appointed by the Governor in Council on the recommendation of the Minister for Health. Directors are usually appointed for a term of three years, with members eligible to apply for reappointment. The Minister for Health requires the Board to develop a Strategic Plan for the Health Service and to ensure accountable and efficient provision of health services.

The Board of Directors is responsible for the governance and strategic direction of the Health Service and is committed to ensuring that the services provided by Peninsula Health comply with the requirements of the Health Services Act 1988 and the mission, vision and goals of the service.

During 2013/14, the Minister for Health and the Chair of Peninsula Health signed a Statement of Priorities of agreed funding, activity and service performance.

The Board held 11 meetings in the financial year 1 July 2013 to 30 June 2014. At these meetings, members of the Peninsula Health Executive regularly presented reports on their areas of responsibility.

Board of Directors as at 30 June 2014

Ms Nancy Hogan BA(Hons) Poli Sci GradDipRehab Studies MBA FACHSE AAICD

Chairperson

Appointed 1 July 2008

Executive Director Health and Aged Care Galante Business Solutions; former CEO of public, not-for-profit organisations and private hospitals and aged care organisations; former President of Aged and Community Care Australia and Australian College of Health Service Executives; former Board Director HESTA and Industry Funds Management Advisory Board; current Board Chair Melbourne General Practice Network.

Mr Michael Carroll BBus (Economics and Management) DipFS (Financial Planning)


Senior Financial Advisor Perpetual Private to its high net worth clients; past Board member Big Brothers Big Sisters (Melbourne) Incorporated; specialist in aged care, estate and philanthropic planning issues; and advisor on structured giving options.

Mrs Marcia Coleman

Appointed 1 July 2011; retired 30 June 2014

Former Chairman Australians Donate; past member National Clinical Taskforce on Organ & Tissue Donation, Aged Care Complaints Resolution Scheme, Victorian Health Services Review Council, National Health & Medical Research Council Ethics Committee working party, and Australian Health Ministers Advisory Council Committee; senior appointments at Southern Health and Monash Medical Centre; former Board member McCulloch House Aged Care and Queen Victoria Medical Centre.

Professor Henry Ekert AM MBBS MD FRACP


Clinical paediatric haematologist/oncologist; former Director Division of Medicine, Royal Children’s Hospital; Past President Clinical Oncological Society of Australia; advisor on haematology to Commonwealth Department of Health and Ageing.

Mr Geoffrey Rankin BBus (Accountancy) FCPA


Former CEO CPA Australia; former CEO Australian Leisure and Hospitality Group; senior executive experience in listed companies and not for profit sector.

Mr Michael Tiernan LLB


Consultant Legal Management and OHS, Rehabilitation and Risk Management; Legal Practice management consultant; Member Law Institute of Victoria; nationally accredited Specialist Mediator Law Institute of Victoria; Member Law Institute of Victoria WorkCover Committee and Accident Compensation Committee; Chair Law Institute of Victoria Practice Management Committee.

Mr Jonathan Tribe BA MAdmin


Former Chief Executive Western Hospital and Royal Melbourne Hospital; former Managing Director Delaware North Companies International; current CEO Southern Metropolitan Cemeteries Trust.

Ms Erika Wilke BA GradDipSoc DipFinPlanning CFP®


Director PrimeCare Financial Planning; experience in aged care sector; co-author Retirement Living and Aged Care – the Australian Master Financial Planning Guide.

Dr Laurie Warfe MBBS DRANZCOG FRACGP


Chair Victorian Board of the Medical Board of Australia; member of panel of examiners for Royal Australian College of General Practitioners; Honorary Colonel Royal Australian Army Medical Corps; past President Frankston Sunrise Rotary Club.



Board committees as at 30 June 2014

Nine committees provide specialist advice and support to the Board. The committees also assist the Board and senior management to meet all statutory, regulatory and operational requirements for the Health Service.

Finance & Resources Committee

The Finance & Resources Committee reviews all financial matters, management information and internal control systems, and considers and makes recommendations to the Board on major and minor works.

Board members: Geoffrey Rankin (Chair), Michael Carroll, Nancy Hogan, Jonathan Tribe, Erika Wilke.

Audit & Risk Committee

The Audit & Risk Committee meets quarterly and at any other time as requested by the Peninsula Health Board, any Committee member, the internal auditor or the Auditor-General. The Committee liaises with the internal and external auditors, reviews and approves audit programs and evaluates the adequacy and effectiveness of the overall governance framework operating within Peninsula Health. The Committee receives reports via the compliance monitoring framework and monitors all risk management activities for Peninsula Health.

Board members: Jonathan Tribe (Chair), Marcia Coleman, Geoffrey Rankin.

Quality & Clinical Governance Committee

The Quality & Clinical Governance Committee meets regularly to monitor outcomes and improve the quality and effectiveness of the health services provided by Peninsula Health. The Committee is also responsible for the clinical risk management activities of Peninsula Health, which are integrated with its quality systems.

Board members: Michael Tiernan (Chair), Marcia Coleman, Henry Ekert, Nancy Hogan, Laurie Warfe.

Medical Staff Association/Board Executive

The Board Executive considers clinical matters brought forward through the Chairman of the Medical Staff Association. Meetings are held quarterly between the Board Executive and the Chair of the Medical Staff Association, with the Deputy Chair Medical Staff Association, the Chief Executive and the Executive Director Medical Services Peninsula Health, in attendance.

Board members: Nancy Hogan (Chair), Henry Ekert, Michael Tiernan.

Human Research Ethics Committee

The Human Research Ethics Committee considers and advises the Board of Peninsula Health on all ethical matters arising from relevant research activity. It considers the ethical and scientific aspects of research projects submitted for approval and monitors approved research, through regular reports submitted by researchers in relation to ongoing and completed projects.

For further information on the work of the Human Research Ethics Committee, please see our Research Report 2014.

Board members: Laurie Warfe (Chair), Henry Ekert.

Community Advisory Committee

The Community Advisory Committee brings the voices of the community and consumers into the decision-making processes of Peninsula Health to ensure that the Health Service develops services that are responsive to our diverse community. Members provide information and advice on needs, demands, and service developments from a community perspective. The Committee is supported by 13 Community Advisory Groups, including the Cultural and Linguistic Diversity Community Advisory Group and the Disability Community Advisory Group. For further information on the work of the Community Advisory Committee and Community Advisory Groups, please see our Quality of Care Report 2014.

Board members: Michael Carroll, Marcia Coleman.

Primary Care & Population Health Committee

The Primary Care & Population Health Committee assists in creating effective linkages between the Health Service and other primary care providers to co-ordinate the delivery of care in the community. The committee oversees catchment-wide primary care coordination through implementation of The Peninsula Model.

Board members: Michael Tiernan (Chair), Erika Wilke.

Remuneration Committee

The Remuneration Committee meets as required to review performance and determine remuneration of executive management.

Board members: Nancy Hogan (Chair), Geoffrey Rankin, Michael Tiernan.

Senior Medical & Dental Staff Appointments Committee

The Senior Medical & Dental Staff Appointments Committee makes recommendations to the Board of Directors in relation to the appointment of senior medical or dental staff.



Dr Susannah AhernExecutive Director Medical Services

Mr Brendon GardnerChief Operating Officer

Ms Jan ChildChief Operating Officer

Board

Chief ExecutiveMs Sue Williams

Executive Directors

Mr David AndersonExecutive Director Finance

Mr Simon BrewinExecutive Director Planning, Infrastructure and Information Technology

MedicalDr Susannah Ahern

NursingMs Jan Child

Allied HealthMs Jan Child

LegalMr David Goldberg

Public RelationsMr John Jukes

Professional issues

Ms Michelle HolianExecutive Director Human Resources

Peninsula HealthOrganisational structure

as at 4 August 2014

Senior officersChief ExecutiveMs Sue Williams BBus MBA

Ms Sue Williams commenced as Chief Executive of Peninsula Health on 4 August 2014.

Ms Williams’ former roles include General Manager Healthcare Division of the Spotless Group, Partner in the Health and Human Services Division of KPMG, Chief Operating Officer Hospitals with Healthscope, and senior positions with North Western Healthcare Network.

Executive DirectorsDr Susannah Ahern MBBS (Hons) MBA FRACMA

Executive Director Medical Services

Dr Ahern’s operational role includes Medical Workforce; Medical Education; Simulation Centre; Library; Quality & Clinical Governance & Redesign; Pharmacy; Radiology; Pathology; Research; and GP Liaison.

Her strategic responsibilities include the Peninsula Clinical School and the Peninsula Health Medical Workforce Plan.

Ms Jan Child RN GradDip(Behavioural Sc) MSc(HlthAdmin) GAICD

Chief Operating Officer

Ms Child’s operational role includes Mental Health; Emergency Medicine; Aged Care; Rehabilitation; Community Health; Rosebud Hospital; Allied Health; Residential Care; Pastoral Care; Nursing Services; Clinical Information System Implementation.

Her strategic responsibilities include Primary Care and Population Health; Community Participation.

Mr Brendon Gardner BAppSc(HIM) MHA UNSW AFCHSM

Chief Operating Officer

Mr Gardner’s operational role includes Frankston Hospital Acute Inpatient Services; Intensive Care Unit; Emergency Medicine; Medicine; Surgery; Women’s, Children’s & Adolescent Health; Palliative Care; Outpatients; Health Information Services; Management Information Services.

Mr David Anderson BCom MCom FAHSFMA GAICD

Executive Director Finance Acting Chief Executive January to July 2014

Mr Anderson’s operational role includes Finance; Payroll; Printing; MEPACS; Supply.

His strategic responsibilities include Risk Management.

Mr Simon Brewin MBL Grad Dip HSM Grad Cert HE BBus FCHSM

Executive Director Planning, Infrastructure and Information Technology

Mr Brewin’s operational role includes Planning; Infrastructure; Capital Works; Facilities Management; Support Services; Information Technology & Communications; Transport.

His strategic responsibilities include the development and implementation of Peninsula Health’s Strategic and Clinical Service Plan.

Ms Michelle Holian BSc(Hons) MBL (RMIT) GAICD

Executive Director Human Resources

Ms Holian’s operational role includes Employee Relations; HR Services; Workforce Planning; Learning and Organisational Development; Occupational Health and Safety; Emergency Management; Employee Health and Wellbeing; and Rehabilitation and Return to Work of injured employees. She is also responsible for Nursing Allocations and Nurse Bank, Nurse Pool and Ward Clerk Bank.

Her strategic responsibilities include participating as Deputy Chair in the Metro South Clinical Training Network.



Developing a system that is responsive to people’s needs

Action Deliverable Outcome

Implement formal advance care planning structures and processes that provide patients with opportunities to develop review, and have their expressed preferences for future treatment and care enacted

Implement Peninsula Health’s Strategic Plan for 2013 to 2018, with patient centred care at its core.

• Completedandongoing.• PersonCentredCareisGoal1inournew

Strategic Plan and underpins all other goals. Minister for Health approved Peninsula Health Strategic Plan 2013-2018 on 24 January 2014.

• Workprogressingon‘operationalising’ourPerson Centred Care strategy.

Revise Model of Advance Care Plan (ACP) to focus on development of Advance Care Plans in ambulatory settings.

• Completedandongoing.• ModelofCarereviewed.• TransitionCareandtheMovementDisorder

Clinic introducing ACP to their ambulatory programs. ACP training undertaken with General Practitioners (GPs). ACP education delivered to Home and Community Care (HACC) assessment workers at Frankston and Mornington councils and ACP added to their initial assessment.

Further develop ACP capacity of local General Practitioners through Medicare Local.

• Completedandongoing.• AGPACPstudydayundertakenwith

Frankston-Mornington Peninsula Medicare Local, attended by 25 participants. Referrals from GPs increased as a result. GP practices had 1:1 visits re ACP and helpful hints uploaded to the GP website. ACP Practice nurse education at GP clinics undertaken.

Configure and distribute services to address the health needs of the local population

Commence additional services at Stage 2 of the Mornington Centre in line with service planning and population demands.

• Completed.• ConstructionofStage2ofTheMornington

Centre was completed in March 2014. The Flinders Ward opened 30 beds in April 2014.

Commence a strategic services plan for Peninsula Health.

• Completed.• PreparationofourStrategicClinicalServices

Plan commenced in May 2014 with project timeline to complete draft late in 2014. Final approval expected early 2015.

Strategic priorities 2013/14The Victorian Health Priorities Framework 2012-2022 outlines the Victorian Government’s priorities and policy directions.

The seven priority areas in this framework are:

> Developing a system that is responsive to people’s needs > Improving every Victorian’s health status and experiences > Expanding service, workforce and system capacity > Increasing the system’s financial sustainability and

productivity

> Implementing continuous improvements and innovation > Increasing accountability and transparency > Improving utilisation of e-health and communications

technology.

Over the past year, Peninsula Health has worked towards achievement of these priorities as described in the 2013-14 Statement of Priorities agreed with the Minister for Health.

Our activities and achievements against these priorities are outlined as follows.



Improving every Victorian’s health status and experiences


Improve 30 day unplanned readmission rates.

Enhance practices to meet this target, including development of chronic heart failure project with MEPACS call service to have better liaison, monitoring and education with these patients.

• Unplannedadmissionratereduced.• Partofthequalitymeasuresbeingaddressedby

Dr Foster (a business intelligence tool) analysis.

Collaborate with key partners such as Medicare Locals, community health services and other providers to support local implementation of the Victorian Health and Wellbeing Plan 2011-2015.

Collaborate with the Frankston-Mornington Peninsula Medicare Local (FMPML) to increase out of hours services and reduce demand on emergency department services.

• Completedandongoing.• Strongcollaborationoccurringthroughthe

Primary Care and Population Health Committee and through implementation of The Peninsula Model.

• Serviceagreementsdevelopedforarangeofinitiatives including:o extended hours of service for Resi-In-Reach

programo telemedicine opportunities with web based

consults with GPs and specialists from Residential Aged Care Facilities

o Introduction of PACER (Police, Ambulance and Clinical Early Response) services after hours

o increased access to locum services and after hours clinics.

• PositiveimpactatRosebudHospitalEmergencyDepartment over summer, with reduced low acuity presentations.

Identify service users who are marginalised or vulnerable to poor health, and develop interventions that improve their outcomes relative to other groups. For example Aboriginal people, people affected by mental illness, people at risk of elder abuse, refugees and asylum seekers.

Develop a Reconciliation Action Plan (RAP) by May 2014.

• Completedandongoing.• ComprehensiveCommunityconsultation

informed the RAP which was finalised by a RAP Working Group.

• ImplementationoftheRAPcommencedviathenewly developed Aboriginal and Torres Strait Islander (ATSI) Health Steering Committee.

Establish a Reconciliation Action Plan Working Group made up of Aboriginal and Torres Strait Islander peoples and other staff.

• Completed.• RAPWorkingGroupestablishedfrom

Community consultations facilitated with Brian Martin, a cultural trainer from Muruwari, Bundjalung and Kamilaroi ancestry, and chaired by Peninsula Health’s Cultural Ambassador.

Investigate employment and professional development opportunities for Aboriginal and Torres Strait Islander peoples.

• Completedandongoing.• ATSIHealthUnitManagerappointed.• MobileIntegratedHealthACCESS&Support

worker appointed. • StudyleaveapprovedfortwocurrentATSI

employees to undertake a Masters degree in Public Health.

• CulturalAmbassadorattendedpublic speaking course.

• WebdesigncompanythatemploysATSIstaffcommissioned to develop the new ATSI Health Unit website.

• CateringcompanyusedforReconciliationWeekand other ATSI events is owned and operated by local ATSI Community.

• ‘SchoolBasedTraineeship’programforATSIpeople commenced under Victorian Certificate of Applied Learning (VCAL) program. Two trainees employed at Peninsula Health until July 2017. Community Health also exploring offering Certificate IV in Community Development with a local training provider for ATSI people.

Contribute to the provision of additional dental services to achieve the targets, milestones and objectives of the National Partnership on Treating More Public Dental Patients.

Increase services and reduce waiting lists through extended hours, tele-dentistry for children and a portable dental chair.

• Completedandongoing.• NationalPartnershipAgreementtargets

achieved.• PortabledentalchairdeliveredinOctober

2013 and currently utilised across dental priority groups; ATSI, refugee children and in aged care settings.



Increasing the system’s financial sustainability and productivity


Reduce variation in health service administrative costs.

Participate in benchmarking with other health services for key administrative areas such as Finance and Payroll.

• Completed.• Benchmarkingofstaffresourcesconducted

for Finance, Payroll and Human Resources.

Identify opportunities for efficiency and better value service delivery.

Review data from Health Service financial reporting to identify opportunities to improve workforce efficiency and reduce costs.

• Completed.• Benchmarkdatausedtoidentifypotential

savings and restructuring of services.

Implementing continuous improvements and innovation


Develop and implement improvement strategies that optimise access, patient flow, system coordination and the quality and safety of hospital services.

Develop a clinical policy for patient initiated escalation as part of patient centred care.

• Completedandongoing.• Followingasuccessfulpilotprojectinamedical

ward at Frankston Hospital, work underway to implement a patient and carer escalation process, known as ‘Care Call’ across Peninsula Health. Draft policy approved and being implemented.

Implement enhanced practices for Clinical handovers.

• Completed.• ClinicalHandoverSteeringCommittee

established, and mapped practice against standards and action plan being implemented.

• PoliciesandClinicalPracticeGuidelines reviewed and updated.

• Doctorsshifttoshifttoelectronichandovertool within the Department of Medicine being evaluated.

Reduce wastage of blood and blood products within the Health Service.

• Completed.• Ongoingeducationprovidedtodepartments

with identified blood wastage. Has led to reduction in blood wastage over past 6 months

Expanding service, workforce and system capacity


Support excellence in clinical training through productive engagement in clinical training networks and developing health education partnerships across the continuum of learning.

Complete a program for clinicians to be trained by consumers, as part of patient centred care training.

• Completedandongoing.• Incorporatedasakeycomponentofour

Person Centred Care Strategy. Progress includes development of training model for Junior Medical Staff; inclusion of consumer stories in key organisation forums and clinician education; consumer attendance at workshops run by Health Issues Centre; and regular clinician education by Mental Health Carer and Consumer consultants.

Enhance use of vicPlace to make allied health student placements in addition to nursing and midwifery placements.

• Completedandongoing.• AlliedHealthandNursingdisciplinesutilising

vicPlace for student clinical placement planning and recording of activity. Increased number of placement days offered for 2014 and planning currently underway for 2015.

Work collaboratively with the Department on service and capital planning to develop service and system capacity.

Work collaboratively with the Department to complete the Expanded Emergency Department at Frankston Hospital and the additional beds under Stage 3 by November 2014.

• Ongoing.• Stage3ProjectControlGroup,whichincludes

DH representation, meets monthly to monitor progress of project. Project on track for handover by building contractors in November 2014.



Improving utilisation of e-health and communications technology


Maximise the use of health Information and Communication Technologies (ICT) infrastructure.

Complete implementation of Clover clinical information system and enhance with implementation of Emergency Department Information System (EDIS) by October 2014.

• Completedandongoing.• Implementationofthe2stagesoftheClover

clinical information system completed in August 2013.

• ImplementationofanewEDISonschedulefor completion in October 2014. Planning progressed for ClinDocs as next stage of enhancement.

Trial, implement and evaluate strategies that use e-health as an enabler of better patient care.

Develop improved practices and indicators from data available from Clinical Ordering Viewing and e-Prescribing (Clover) System.

• Completedandongoing.• ComprehensivesuiteofKPIsinplace

alongside benefits realisation documentation. All monitored by relevant committees including Medication Safety and Clinicals Steering Committee.

Increasing accountability and transparency


Prepare for commencement of proposed new mental health legislation in 2014.

Implement changes in processes associated with the new Mental Health Act, including models of care.

• Completed.• NewMental Health Act implemented on

1 July 2014. Our Mental Health Service appointed a Mental Health Act Implementation Project Officer and implementation plan near completion.

• MentalHealthClinicalPracticeGuidelines and Policies updated to reflect the new Mental Health Act, and staff attended specific training sessions.

• RecoveryOrientedPracticeClinicalPracticeGuideline developed and incorporated into the Recovery training to support the decision making framework within the new Mental Health Act.

Prepare for the National Safety and Quality Health Service Standards, as applicable.

Develop improved processes for each National Standard based on comments made at the Australian Council on Healthcare Standards (ACHS) Periodic Review under the new standards completed in May 2013.

• Completed.• Preparationfororganisation-wide

accreditation in 2015 commenced, and committees established for Standards 1-15.

• Gapanalysisundertakenforeachstandard and suite of KPIs reported to our Board.

• Actionplansdevelopedtomeettherequirements of each standard.

Implement systems that support streamlined approaches to clinical governance at all levels of the organisation.

Implement electronic credentialing system for medical staff dentists and nurses, linked to application and approval processes.

• Completed.• Electroniccredentialingembeddedin

credentialing, scope of practice and appointment process for medical and dental staff.

• SeniorMedicalstaffcontractsupdatedtosupporta streamlined approach to clinical governance.

• Clinicianappointmentandscopeofpracticereviewed at regular reappointment times, and at other relevant times, including where new technologies are introduced.



Financial summary2013/14$000

2012/13$000

2011/12$000

20010/11$000

2009/10$000

Total revenue 465,462 441,142 420,956 401,140 365,415

Total expenses 464,820 439,657 419,782 401,110 365,339

Net result for year (from continuing operations before Capital and Specific Items)

642 1,485 1,174 30 76

Retained surplus/(accumulated deficit) 50,072 7,510 9,368 9,195 11,267

Total assets 440,336 372,490 361,285 351,788 347,698

Total liabilities 127,326 112,299 100,133 85,305 80,544

Net assets 313,010 260,191 261,152 266,483 267,154

Total equity 313,010 260,191 261,152 266,483 267,154

Financial commentaryPeninsula Health’s financial performance in 2013/14 was in line with financial targets set for the year, with an operating surplus (recorded before discontinued operations, capital income and depreciation) of $642,000. The operating surplus enabled capital items for the Health Service to be funded.

In 2013/14, in comparison to the previous financial year:

> Total revenue increased to $465.5m from $441.1m> Total assets rose by $67.8m to $440.3m> Liabilities increased by $15.0m to $127.3m> Equity, being the difference between assets and

liabilities, increased by $52.8m to $313.0m.

For full details of our financial performance, see the Financial Statements contained separately at the back of this publication.

Ex-gratia paymentsEx-gratia payments of $4,798 were made by Peninsula Health during 2013/14.

Looking aheadPeninsula Health’s financial sustainability is critical to the ongoing provision of quality services.

Operating result Target 2013/14actuals

2012/13actuals

Annual operating result ($m) $0.0m $0.642m $1.485m

WIES1 activity performance Target 2013/14actuals

WIES (public and private) performance to target 2

100% 97%

Emergency Care – Frankston Hospital 2013/14actuals

Total presentations to Emergency Department 63,856

Acuity (Triage Category 1 – 3 = most urgent presentations) 67%

Target 2013/14actuals

Operating time on hospital bypass 3% 1.7%

Ambulance patients transferred within 40 minutes (data from Ambulance Victoria)

90% 84.4%1

NEAT – emergency presentations to physically leave the emergency department for admission to hospital, be referred to another hospital for treatment, or be discharged within 4 hours (July – December 2013)

75% 48.8%

NEAT – emergency presentations to physically leave the emergency department for admission to hospital, be referred to another hospital for treatment, or be discharged within 4 hours (January – June 2014)

81% 56.6%

Number of patients with length of stay in emergency department greater than 24 hours

0 94

Triage Category 1 emergency patients seen immediately

100% 100%

Triage Category 1 to 5 emergency patients seen within clinically recommended times

80% 91.6%

Cash management Target 2013/14actuals

2012/13actuals

Creditors (days) < 60 days 34 34

Debtors (days) < 60 days 41 40

Net movement in cash balance ($m)

$16.144m ($1.323m)

Performance prioritiesFinancial performance Access performance

1. WIES is a Weighted Inlier Equivalent Separation.2. WIES data as reported in this publication are modelled as at 6 August 2014.

Final WIES results are normally completed in September. 1. Data as at 10 July 2014.



Emergency Care – Rosebud Hospital 2013/14actuals

Total presentations to Emergency Department 20,225

Acuity (Triage Category 1 – 3 = most urgent presentations) 47%

Target 2013/14actuals

Operating time on hospital bypass 3% 0.2%

Ambulance patients transferred within 40 minutes (data from Ambulance Victoria)

90% 93.9%1

NEAT – emergency presentations to physically leave the emergency department for admission to hospital, be referred to another hospital for treatment, or be discharged within 4 hours (July – December 2013)

75% 83%

NEAT – emergency presentations to physically leave the emergency department for admission to hospital, be referred to another hospital for treatment, or be discharged within 4 hours (January – June 2014)

81% 84%

Number of patients with length of stay in emergency department greater than 24 hours

0 0

Triage Category 1 emergency patients seen immediately

100% 100%

Triage Category 1 to 5 emergency patients seen within clinically recommended times

80% 86%

Elective surgery Target 2013/14actuals

Urgency Category 1 elective surgery patients treated within 30 days

100% 100%

NEST – Urgency Category 2 elective surgery patients treated within 90 days (July – December 2013)

80% 59%

NEST – Urgency Category 2 elective surgery patients treated within 90 days (January – June 2014)

88% 63%

NEST – Urgency Category 3 elective surgery patients treated within 365 days (July – December 2013)

94.5% 92%

NEST – Urgency Category 3 elective surgery patients treated within 365 days (January – June 2014)

97% 91%

Number of patients on elective surgery waiting list as at 30 June 2014

1,4352 1,379

Number of Hospital Initiated Postponements (HiPs) per 100 scheduled admissions

8 4.3

Number of patients admitted from elective surgery waiting list – quarter 1

1,610 1,654


1,6263 1,588


1,6804 1,630


1,6625 1,730

1. Data as at 10 July 20142. Target revised from 1,665 in January 2014.3. Target revised from 1,580 in January 2014.4. Target revised from 1,580 in January 2014.5. Target revised from 1,578 in January 2014.

Critical care Target 2013/14actuals

No of days operating below agreed Adult ICU minimum operating capacity

0 191

Quality and safety Target 2013/14actuals

Health service accreditation Full compliance

Full compliance

Residential aged care accreditation Full compliance

Achieved

Cleaning standards (overall) Full compliance

Full compliance

Cleaning standards (AQL-A) 90% 96%

Cleaning standards (AQL-B) 85% 95%

Cleaning standards (AQL-C) 85% 93%

Health care worker immunization – influenza Frankston Hospital

60% 66%2

Health care worker immunization – influenza Rosebud Hospital

60% 63%2

Submission of data to VICNISS Full compliance

Full compliance

Hospital acquired infection surveillance

No outliers No outliers

Hand Hygiene (rate) 70% 74.9%

SAB* rate per occupied bed days3 < 2/10,000 Achieved

SAB 1.6

SAB MRSA 0.5

Victorian Patient Satisfaction Monitor Overall Care Index4 (July – December 2013)

Frankston Hospital

73% 76.15

Rosebud Hospital

73% 81.35

Rehabilitation & Aged Care

73% 75.85

Consumer Participation Indicator (July – December 2013)

75% Achieved

Victorian Hospital Experience Measurement Instrument** (January – June 2014)

Full compliance

Full compliance

People Matter Survey Full compliance

Partially achieved6

* SAB is staphylococcus aureus bacteraemia.** The Victorian Hospital Experience Measurement Instrument succeeded the Victorian

Patient Satisfaction Monitor as the instrument for measuring patient experience.

1. Two ICU beds closed during 2013/14 due to Frankston Hospital F3/Emergency Department development project.

2. Data as at 24 July 2014.3. Data to 30 March 2014.4. The target for the Victorian Patient Satisfaction Monitor

is the Overall Care Index, which comprises 6 categories.5. Data for January – June 2013. Further data not available.6. The People Matter Survey response rate of 21% did not

meet Department of Health target of 30%.


Maternity Target 2013/14actuals

Women offered prearranged postnatal care

100% 100%

Mental Health Target 2013/14actuals

Adult Mental Health 28 day readmission rate (percentage)

14% 10.65%

Adult Mental Health Post-discharge follow-up rate (percentage)

75% 90.2%

Adult Mental Health Seclusion rate per occupied bed days

<15/1,000 0.48

Aged Mental Health 28 day readmission rate (percentage)

14% 4.46%

Aged Mental Health Post-discharge follow-up rate (percentage)

75% 93.5%

Aged Mental Health Seclusion rate per occupied bed days

<15/1,000 0


Acute Admitted 2013/14actuals

WIES1 Public 38,613

WIES Private 7,415

Total WIES (Public and Private) 46,028

WIES Renal 1,157

WIES DVA 1,334

WIES TAC 208

WIES WorkCover 9

WIES Overseas 49

WIES TOTAL 48,785

Sub Acute and Non Acute Admitted 2013/14actuals

Rehab Public – bed days 24,578

Rehab Private – bed days 9,581

Rehab DVA – bed days 2,623

GEM Public – bed days 20,837

GEM Private – bed days 9,234

GEM DVA – bed days 3,715

Palliative Care Public – bed days 3,550

Palliative Care Private – bed days 1,176

Palliative Care DVA – bed days 336

Transition Care – bed days 15,769

Transition Care – home days 4,569

Activity and fundingFunding type

Activity Achievement

Aged Care 2013/14actuals

Residential Aged Care – bed days 16,655

Home & Community Care Program (HACC) – hours of service

60,249

1. WIES data as reported in this publication are modelled as at 6 August 2014. Final WIES results are normally completed in September.

Labour category JUNECurrent month FTE

JUNEYTD FTE

Labour category 2014 2013 2014 2013

Nursing 1,545.39 1,492.32 1,518.27 1,520.11

Administration & Clerical

499.40 478.82 492.01 493.37

Medical Support 311.84 293.65 302.92 307.44

Hotel & Allied Services

358.94 362.05 361.26 362.80

Medical Officers 55.15 55.491 52.09 50.39

Hospital Medical Officers

264.67 262.81 262.95 263.91

Sessional Clinicians

67.12 59.161 63.67 67.92

Ancillary Staff (Allied Health)

363.23 328.52 352.62 335.18

Total 3,465.72 3,332.82 3,405.79 3,396.26

Mental Health and Drug Services 2013/14actuals

Mental Health Inpatient – occupied bed daysAdultAgedTotal

9,9354,35114,286

Mental Health Ambulatory – contacts 115,589

Mental Health Residential – occupied bed daysCommunity Care UnitMichael CourtCarinya

37,387151,360248,695

Mental Health Sub Acute – occupied bed days Adult Prevention and Recovery Care (APARC) Youth Prevention and Recovery Care (YPARC)

2,560 2,395

Drug and Alcohol Services – episodes of care 1,809

Primary Health 2013/14actuals

Community Health/Primary Care Programs – hours of service provided

133,739

1.∗ Data as at May 2013. Data for June 2013 were not reflective of accurate FTE due to historically adjusted pay rates in those labour categories for that month.

Workforce data



Other disclosuresBuilding Act 1993 complianceDuring 2013/14, Peninsula Health complied with the building and maintenance provisions of the Building Act 1993.

Carers Recognition Act 2012Peninsula Health takes all practicable measures to ensure that:

> our employees and agents have an awareness and understanding of the care relationship principles

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

> our employees and agents reflect the care relationship principles in developing, providing or evaluating support and assistance for people in care relationships.

Consultancy information In 2013/14, Peninsula Health engaged 8 consultancies where the total fees payable to the consultants were in excess of $10,000 (exclusive of GST) per consultancy, with a total expenditure of $244,563 (exclusive of GST).

In 2013/14, Peninsula Health engaged 7 consultancies costing less than $10,000 per consultancy (exclusive of GST), with a total expenditure of $47,608 (exclusive of GST).

ContractsDuring 2013/14, Peninsula Health did not enter into or complete any contracts under the Victorian Industry Participation Policy Act 2003 guidelines other than those reported on behalf of Peninsula Health by the Department of Health.

Environmental performancePeninsula Health is committed to reducing our environmental impact while delivering high quality healthcare. An Environmental and Sustainability Policy, part of our ongoing Environmental and Sustainability initiative, is linked to the Health Service’s Strategic Plan.

Our aim is to reduce greenhouse gas emissions and reduce our reliance on natural resources. Key objectives and targets focus on improving our environmental performance, and we monitor and report on all initiatives.

Commitment to environmental and sustainable practices

A ResourceSmart Committee chaired by the Executive Director Planning, Infrastructure and IT oversees the Environmental and Sustainability Program.

> ResourceSmart champions across Peninsula Health help support and promote the program at a local level.

> A quarterly Greening the Peninsula newsletter updates staff on our environmental sustainable initiatives and provides tips for use at work and home. A ResourceSmart link on the staff intranet provides links to newsletters, alternative travel options and environmental tips. We are now using Peninsula Health’s Facebook page to inform the wider community of our environmental sustainability initiatives.

Consultant Purpose of consultancy Total approved project fee (ex GST)

Expenditure 2013/14 (ex GST)

Future expenditure (ex GST)

Charter Keck Cramer Sale of Property 277-288 Eastbourne Rd, Rosebud

$54,109 $54,109 0

Capital Insight Pty Limited Feasibility study – Relocation of Mt Eliza Centre

$50,000 $50,000 0

K & L Gates Review of Peninsula Health senior medical staff contracts

$35,600 $35,600 0

Flinders University Peninsula Health Older Wiser Lifestyles project

$30,000 $30,000 0

Frizzell Pound Trust Develop Peninsula Health Response to the Alcohol & Drug Services in Victoria tender

$25,000 $25,000 0

Data Agility Pty Ltd Analysis of X-encounter options $19,000 $19,000 0

Peacemaker ADR Pty Ltd Workplace review $17,104 $17,104 0

Indigenous Career and Employment Delivery, design & implementation of career path/leadership succession plans for Aboriginal Community Leaders

$13,750 $13,750 0

TOTAL $244,563



> Waste reduction targets to encourage and monitor recycling of construction waste

The Facilities Management Department and ESD consultants investigate, review and implement advanced ESD measures in major capital projects in consultation with the Department of Health and project design teams.

Smarter Transport Program

As a signatory to Victoria’s TravelSmart program, Peninsula Health encourages staff to choose sustainable travel alternatives such as walking, cycling, car-pooling or public transport while recognising public transport constraints across the Mornington Peninsula.

Our Smarter Transport program is promoted in Greening the Peninsula and on our intranet.

Energy management

Peninsula Health aims to manage energy effectively to reduce demand on non-renewable natural resources. Efficient utilisation of plant and replacement with more efficient high-tech options is a priority.

> In 2013/14 we replaced our two main chillers at Frankston Hospital with high efficiency chillers that are four times more efficient.

Energy usage is measured against key performance indicators and is consistently within set targets as indicated below.

Water management

Implementation of water saving initiatives includes water efficient toilets, shower timers and rain water harvesting to water storage tanks. Water saving strategies are incorporated in sustainability planning for major capital works.

> Potable water use at Frankston Hospital increased temporarily during the year because the water tanks used for toilet flushing were removed. This increase will be ratified when new tanks are installed as part of the Frankston Hospital F3/Emergency Department building development.

Reporting on our performance

Progress on achieving key performance indicators for energy and water performance is reported to the Peninsula Health Board and the Department of Health. Emissions data is reported annually to the National Greenhouse and Energy Reporting Clean Energy Regulator and the National Pollutant Inventory via the Victorian Environmental Protection Agency.

Continuous improvement

Our strategy for continuous improvement in environmental management includes:

Capital Works – Ecological Sustainable Design (ESD)

Our Facilities Management Team and the Capital Works ESD Consultant are guided by the Department of Health’s Capital Works Guidelines, Building Code of Australia, Australian Standards, and International Standards ISO where applicable.

A list of practical ESD initiatives to be implemented where suitable includes:

> Energy and carbon reduction strategies including solar hot water, lighting zoning and electronic building management systems with good controls

> Water saving initiatives from rainwater harvesting and efficient fixtures, and air∗based air-conditioning systems that capture heat energy and reject it into the environment using air instead of water

> Management systems for metering, maintenance, environmental plans

> Low environmental impact materials such as recycled, low volatile organic compounds and paints

> Transport infrastructure including facilities that encourage bicycle use

> Landscaping that encourages the use of local flora, swales, bio filtration and drought tolerant plant species

> Improved internal environmental quality through better use of daylight, solar controls, external views, and location of air intakes

> Emission reduction by avoiding ozone-depleting chemicals and sourcing recognised alternatives such as gases used in air conditioning and thermal insulants

Rate per m2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2013/2014 0.020 0.019 0.021 0.018 0.018 0.018 0.019 0.018 0.019 0.018 0.019 0.019

2012/2013 0.024 0.024 0.022 0.023 0.023 0.023 0.024 0.023 0.025 0.019 0.020 0.019

Target 0.027 0.026 0.025 0.026 0.025 0.027 0.029 0.028 0.027 0.026 0.027 0.023

Kilolitres per m2 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2013/2014 0.075 0.078 0.073 0.078 0.081 0.090 0.096 0.086 0.093 0.082 0.085 0.085

2012/2013 0.088 0.082 0.083 0.091 0.089 0.085 0.098 0.082 0.097 0.072 0.077 0.068

Target 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090 0.090

CO2 emissions from energy consumed

Water consumption

Data for June 2014 estimated due to billing lag.

Data for June 2014 estimated due to billing lag.



Fleet management

Strategies to reduce fossil fuel consumption and our carbon footprint are ongoing.

> In 2013/14, Peninsula Health’s fuel consumption reduced by 66,190 litres (22.74%) compared with the previous year, a reduction of 65.99 tonnes in greenhouse gas emissions.

Implemented initiatives include:

> A diesel hybrid truck for food service deliveries, reducing fuel consumed by 40% over conventional vehicles

> Use of diesel vehicles within the fleet, including all passenger buses

> Ongoing replacement of 6-cylinder vehicles with more fuel efficient vehicles

> Overall reduction in fleet by 18%> A fuel efficient SmartCar for shorter trips> Regular scheduled servicing and correct tyre pressures> RACV training sessions for staff.

Sustainable procurement

By participating in HPV (Health Purchasing Victoria), we are able to incorporate environmental specifications in our key service contracts.

> The Supply Department focuses on minimising waste, including excess packaging and packaging take-back

> Packaging waste is recycled or reused where possible > The importance of managing and minimising inventory

levels is promoted across clinical units, and they are supported with scanning technology and periodic review of inventory levels.

Information technology initiatives

Sustainability is a key part of evaluating the information and communication systems used across Peninsula Health. Our Information Technology Department ensures that information and communication systems are reliable and provide the functionality that a large health service requires.

> A Thin Client Technology trial is being carried out at the recently opened Mornington Centre Stage II development. A standard personal computer uses an average 100 watts of power while the new Thin Client technology uses only 7 watts.

> Building management, nurse call, duress and CCTV security systems are integrated, reducing costs of supporting, maintaining and upgrading multiple systems.

> VoiceOver IP (VOIP) or IP Telephony leverages off the existing fixed and wireless computer network, delivering enhanced functionality and cost savings.

> IP Video Conferencing is used to facilitate video conference sessions between Peninsula Health sites or external organisations, reducing travel times and costs and delivering more accessible communication via a broader range of devices.

> Clover ePrescribing and Electronic Ordering (Stage 3) has replaced paper-based forms for ordering results and prescribing medications.

> Medical records are scanned using an electronic document management system.

> All Peninsula Health Ricoh printer copiers are set up to print double-sided as standard.

> All PC monitors go into power save mode automatically after 10 minutes, and the smallest possible PCs are purchased to reduce power consumption.

Waste management

Our waste management program includes online training for staff, a waste management information booklet, a waste segregation reference card for ID lanyards, and waste usage reports which include waste costs per site by bed day.

> Peninsula Health is a member of the Victorian Green Health Round Table Group which shares environmental sustainability initiatives. Members carry out waste benchmarking each year, and this confirms that Peninsula Health consistently performs well when compared to other health services.

> The use of microfiber mops has been extended to the new Flinders Ward at The Mornington Centre and will be rolled out at other sites during 2014/15, further reducing chemical and water usage.

> We will continue investigating further segregation of waste streams and are working towards recycling polystyrene used for packaging and catering purposes.

Gaia Recycling unit initiative

To reduce greenhouse gas emissions and waste costs, a Gaia Recycling unit was installed at Frankston Hospital as part of the Stage 3 and Emergency Department Project. Organic kitchen waste including meat, dairy and green waste is placed in a sealed unit which macerates and heats the organic waste up to 100o Celsius over an 8 hour period. This reduces kitchen waste going to landfill by 85% by turning it into a sterile biomass that can be used as a soil amendment.

Peninsula Health plans to test the biomass to ascertain if it can be used as a soil amendment in our gardens.

Equal Opportunity and Code of Conduct Peninsula Health complies with Equal Employment Opportunity principles in relation to recruitment and employment.

The Code of Conduct forms part of the employment contract and appropriate workforce conduct is reinforced by performance management and discipline processes.



Freedom of Information Act 1982In 2013/14 Peninsula Health received 694 requests for information:

486 Access granted in full80 Access granted in part1 Access denied in full11 Withdrawn10 Not proceeded with28 No documents exist78 Not finalised as of 30 June 2014

(decision pending).

National Competition PolicyThe Government’s Competitive Neutrality Policy Victoria commits public health services to apply Model 2 Competitive Neutrality policies. Model 2 includes adoption of pricing principles to take account of and reflect full cost attribution for net competitive advantages conferred by government ownership.

The aim of the policy is to ensure that where government’s business activities involve it in competition with private sector business activities, the net competitive advantages to accrue to a government business are offset. This enables the government business and the private sector business to compete fairly on the basis of their relative skills, efficiency, and other unique characteristics that make up their business.

The application of competitive pricing principles to significant business activities also provides management with information about the relative efficiency of business activities.

Peninsula Health complies with the Model 2 competitively neutral pricing principles outlined in the documents Competitive Neutrality - A Statement of Victorian Government Policy and A Guide to Implementing Competitively Neutral Pricing Principles.

Protected Disclosure Act 2012Peninsula Health has a Protected Disclosure Policy that is in force to ensure that Peninsula Health:

> Complies with the Protected Disclosure Act 2012 (Vic)> Maintains an awareness amongst employees, officers

and the general public of the Protected Disclosure Act> Protects from detrimental action any person who makes

a protected disclosure, and> Investigates any complaint made to the organisation.

Occupational Health and Safety (OHS)Peninsula Health’s OHS achievements for 2013/14 included:

> Successful external review of the Safety Management System. Our safety management system fully meets Australian Standard AS: 4801:2001 OHS Management Systems as confirmed by Best Practice Certification from an external third party auditor, who confirmed: o Our OHS system complied with all elements of the

standardo The system is well supported by an effective

consultative frameworko There was clear evidence that the safety

management system supported the service functions at local level, and

o Peninsula Health’s safety management system level of maturity provides the Health Service with a system approach to the management of OHS risk.

> This report also assisted Peninsula Health to evidence compliance with Recommendation 4 of the Victorian Auditor-General’s report, Occupational Health and Safety Risk in Public Hospitals (November 2013) which recommended that “public hospitals and health services implement a systematic and integrated approach to occupational health and safety that complies with the Australian Standard on occupational health and safety management systems, AS.NZS 4801:2001, or an equivalent standard”.

Manual Handling Risk Review project

Progress continues on an Action Plan resulting from our Manual Handling Risk Review project. This project aimed to analyse incident data in order to understand the primary causes of risk of injury, illness or disease, and to identify strategies to reduce risk by implementing appropriate controls.

The project also provided an opportunity to review existing OHS management systems relating to manual handling including training and competency assessment processes for general manual handling and No Lift. An OHS Consultative Committee meets regularly to monitor progress of the Action Plan.



No Lift process

A new approach to No Lift Compliance Monitoring introduced in March 2014 aims to further reduce injury to staff performing patient handling tasks and to ensure compliance with principles of Safe Patient Handling.

Following the first audit cycle in March 2014, Peninsula Health is now able to:

> report levels of compliance in real time> analyse compliance data by professional discipline, and > identify organisational and local ‘hotspots’ for patient

manual handling.

This improved data enables us to target areas of concern, further improve patient manual handling practice, and make the workplace safer for patients and staff.

Emergency Management Training program

During the year, we carried out 52 emergency evacuation exercises, with a compliance rate over 95%. Additionally, 1,247 staff took part in emergency control organisation training including Emergency Controller and Emergency Area Warden training, an increase of 12% on the previous financial year.

Our overall fire training compliance rate for the year was 85%, under the 95% target.

WorkCover

During 2013/14, 66 claims were submitted by staff, a 41% decrease from 112 claims in the previous year. There was a marked decrease in claims resulting from aggressive events. The number of patient and general manual handling claims remained similar to the previous year.

Year* Total claims Time lost claims

> 10 lost shifts* Nature of incident (>10 shifts bracketed)

Aggression Patient handling

Manual handling

Other

2009/10 120 93 47 15 (7) 35 (12) 36 (13) 34 (15)

2010/11 112 77 34 7 (0) 27 (8) 36 (11) 42 (15)

2011/12 89 66 24 7 (0) 12 (4) 31 (9) 39 (11)

2012/13 112 87 26 18 (6) 25 (5) 19 (4) 50 (11)

2013/14 66 47 29 4 (1) 22 (10) 19 (8) 21 (10)

* Calculation based on sum of lost shifts as at end of each month.

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

2008/09

% P

ayro

ll

2009/10

PH Premium Rate Industry Rate

2010/11 2011/12 2012/13 2013/14 2014/15

Total time lost as at 30 June 2014 for claims received during 2013/14 reduced by 24% on 2012/13 as we maintain our strong commitment to providing safe and sustainable return to work opportunities for staff injured in the workplace.

WorkCover Premium Rates

During 2013/14, the WorkCover premium payable increased from $3.1m to $3.2m. This can be attributed to a combination of the increase in health service remuneration and a slight deterioration in performance compared with the Victorian health service industry as a whole, despite a reduction in Peninsula Health’s claim costs of 8.4% across the premium calculation period.



Additional information available on requestIn compliance with the requirements of the FRD 22D Standard Disclosures in the Report of Operations, details in respect of the items listed below have been retained by Peninsula Health and are available to the relevant Ministers, Members of Parliament and the public on request, subject to Freedom of Information requirements, if applicable:

> A statement of pecuniary interest has been completed> Details of shares held by senior officers as nominee or

held beneficially> Details of publications produced by the Department

about the activities of the Health Service, and where they can be obtained

> Details of changes in prices, fees, charges, rates and levies charged by Peninsula Health

> Details of any major external reviews carried out on Peninsula Health

> Details of major research and development activities undertaken by Peninsula Health that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations

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

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

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

> General statement on industrial relations within Peninsula Health and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations

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

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

Attestation on compliance with Australian/New Zealand Risk Management Standard I, Nancy Hogan, certify that Peninsula Health has risk management processes in place consistent with the AS/NZS ISO 31000:2009 and an internal control system is in place that enables the executives to understand, manage and satisfactorily control risk exposures.

The Audit and Risk Committee and Board verify this assurance and that the risk profile of Peninsula Health has been critically reviewed within the last 12 months.

Ms Nancy HoganChairpersonPeninsula Health19 August 2014

Attestation on data integrityI, Sue Williams, certify that Peninsula Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Peninsula Health has critically reviewed these controls and processes during the year.

Ms Sue WilliamsChief ExecutivePeninsula Health19 August 2014

Attestation on compliance with SD 4.5.5.1 – InsuranceI, Ms Sue Williams, Chief Executive Officer, certify that Peninsula Health has complied with Ministerial Direction 4.5.5.1 – Insurance.

Ms Sue WilliamsChief ExecutivePeninsula Health19 August 2014

Disclosure IndexSee page 23 of this publication.



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

Legislation Requirement Page

Ministerial Directions

Report of operations Charter and purposeFRD 22D Manner of establishment and the relevant Ministers 3FRD 22D Objectives, functions, powers and duties 3FRD 22D Nature and range of services provided 3,5Management and structureFRD 22D Organisational structure 9Financial and other informationFRD 10 Disclosure index 23FRD 11A Disclosure of ex-gratia payments 14FRD 12A Disclosure of major contracts 17FRD 21B Responsible person and executive officer disclosures 3,22FRD 22D Application and operation of Protected Disclosure Act 2012 20FRD 22D Application and operation of Carers Recognition Act 2012 17FRD 22D Application and operation of Freedom of Information Act 1982 20FRD 22D Compliance with building and maintenance provisions of Building Act 1993 17FRD 22D Details of consultancies over $10,000 17FRD 22D Details of consultancies under $10,000 17FRD 22D Employment and conduct principles 19FRD 22D Major changes or factors affecting performance 14FRD 22D Occupational health and safety 20FRD 22D Operational and budgetary objectives and performance against objectives 10-13FRD 24C Reporting of office-based environmental impacts 17FRD 22D Significant changes in financial position during the year 14FRD 22D Statement of availability of other information 22FRD 22D Statement on National Competition Policy 20FRD 22D Subsequent events 14FRD 22D Summary of the financial results for the year 14FRD 22D Workforce data disclosures including statement on the application of employment

and conduct principles9, 16,19

FRD 25B Victorian Industry Participation Policy disclosures 17SD 4.2(g) Specific information requirements 1-24SD 4.2(j) Sign-off requirements 3SD 3.4.13 Attestation on data integrity 22SD 4.5.5.1 Attestation on insurance 22SD 4.5.5 Attestation on compliance with Australian/New Zealand Risk Management Standard 22

Financial statementsFinancial statements required under Part 7 of the FMASD 4.2(a) Statement of changes in equity Financial StatementsSD 4.2(b) Comprehensive operating statement Financial StatementsSD 4.2(b) Balance sheet Financial StatementsSD 4.2(b) Cash flow statement Financial StatementsOther requirements under Standing Directions 4.2SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements Financial StatementsSD 4.2(c) Accountable officer’s declaration Financial StatementsSD 4.2(c) Compliance with Ministerial Directions Financial StatementsSD 4.2(d) Rounding of amounts Financial StatementsLegislationFreedom of Information Act 1982

Protected Disclosure Act 2001Carers Recognition Act 2012Victorian Industry Participation Policy Act 2003Building Act 1993Financial Management Act 1994


Glossary

ACHS Australian Council on Healthcare Standards – the principal independent authority that evaluates, assesses and accredits quality improvement systems in Australian health care organisations. It is responsible for the ACHS Evaluation and Quality Improvement Program (EQuIP) and undertakes a comprehensive EQuIP standards review and consultation process of each health care organisation at least every four years

Acuity Intensity or urgency of a patient’s condition

AQL Agreed Quality Level

DVA Department of Veterans’ Affairs – the Commonwealth department that supports people who serve or have served in the armed forces

FTE Full Time Equivalent (in relation to number of staff employed)

GEM Geriatric Evaluation & Management – sub-acute care of chronic or complex conditions associated with ageing, cognitive dysfunction, chronic illness or disability. Patients are admitted for review, treatment and management by a geriatrician and multidisciplinary team for a defined episode of care

HACC Home & Community Care Program – supports frail older people, younger people with disabilities and their carers by providing basic support and maintenance to people living at home

HARP Hospital Admission Risk Program – provision of specialised person-centred medical care and care coordination in community/ambulatory settings through an integrated response of hospital and community services to improve patient outcomes, provide integrated seamless care within and across hospital/community sectors, reduce avoidable hospital admissions and emergency department presentations, and ensure equitable access to healthcare

HITH Hospital in the Home – provision of acute care to public hospital patients in the comfort of their own home or other suitable environment. Patients are regarded as hospital inpatients, and remain under the care of their hospital doctor

ICU Intensive Care Unit

MEPACS Mt Eliza Personal Alarm Call Service

NEAT National Emergency Access Target

NEST National Elective Surgery Target

OHS Occupational Health and Safety

SAB Staphylococcus aureus bacteraemia – a healthcare-associated infection

TAC Transport Accident Commission

Triage Emergency Department process that determines the order and priority of treating patients based on the severity of their condition

VICNISS Victorian Hospital-Acquired Infection Surveillance System

WIES Weighted Inlier Equivalent Separations – a cost weight assigned to each patient that is dependent on the main reason for admission and the time spent in hospital, and which determines the amount of funding received for providing care


Annual publicationsPeninsula Health’s Annual Report 2014 has been produced as required under the Financial Management Act 1994, section 4.2 of the Standing Directions of the Minister for Finance under the Act, and Financial Reporting Directions.

It will be presented to the public at Peninsula Health’s Annual General Meeting on 21 November 2014.

The Annual Report 2014 comprises two sections: Report of Operations and Financial Statements.

For a broader picture of Peninsula Health’s activities over the past year, please see our other annual publications.

> Quality of Care Report 2014 – highlights Peninsula Health’s progress and achievements in improving clinical care and our consumers’ experience

> Research Report 2014 – focuses on the achievements and contributions of staff involved in research.

This report was printed on Nordset, an environmentally responsible paper produced from Forest Stewardship Council Mixed Sources Chain of Custody certified pulp from well managed forests. Nordset is Elemental Chlorine Free and made Carbon Neutral, and is manufactured by Nordland Papier, a company certified with environmental management systems ISO 14001 and EMAS, the EU Eco-Management and Audit Scheme. Nordset has been awarded the EU ‘Flower’ eco-label certification.

© 2014 Peninsula HealthThis work is copyright. You may use material from this publication without altering it for personal or non-commercial use only. You may not store, amend or reproduce material for any other use or by any process without obtaining prior written permission.Requests and enquiries concerning copyright should be addressed to: Director of Public Relations & Marketing, Peninsula Health, PO Box 192, Mt Eliza VIC 3930

For further information about Peninsula Health or to download our annual publications, please visit our website, www.peninsulahealth.org.au.

For printed copies of our publications, please phone Public Relations on (03) 9788 1501.

FrankstonCARINYA RESIDENTIAL AGED CARE UNIT125 Golf Links Road Frankston Vic 3199 Tel (03) 9783 7277

COMMUNITY CARE UNIT4 Spray Street Frankston Vic 3199 Tel (03) 9781 4288

PENINSULA COMMUNITY MENTAL HEALTH SERVICE15-17 Davey Street Frankston Vic 3199 Tel (03) 9784 6999

FRANKSTON COMMUNITY REHABILITATION CENTRE125 Golf Links Road Frankston Vic 3199 Tel (03) 9783 7288

FRANKSTON HOSPITAL2 Hastings Road (PO Box 52) Frankston Vic 3199 Tel (03) 9784 7777

FRANKSTON INTEGRATED HEALTH2 Hastings Road Frankston Vic 3199 Tel (03) 9784 8100

Community Dental ServiceTel (03) 9784 8184

GOLF LINKS ROAD REHABILITATION SERVICE125 Golf Links Road Frankston Vic 3199

Unit 1Tel (03) 9784 8666

Unit 2Tel (03) 9781 2388

PENINSULA MENTAL HEALTH SERVICE2 Hastings Road (PO Box 52) Frankston Vic 3199 Tel 1300 792 977 (24 hours)

PENINSULA ADULT PARC (Prevention & Recovery Care Service)91 Beach Street Frankston Vic 3199Referral only

PENINSULA YOUTH PARC21 Yuille Street Frankston Vic 3199Referral only

PENINSULA HEALTH PALLIATIVE CARE UNIT125 Golf Links Road Frankston Vic 3199Tel (03) 9784 8600

SHARPS20 Young Street Frankston Vic 3199 Tel (03) 9781 1622

HastingsHASTINGS COMMUNITY HEALTH 185 High Street Hastings Vic 3915Tel (03) 5971 9100


Mt ElizaMT ELIZA CENTRE33 Jacksons Road (PO Box 192) Mount Eliza Vic 3930Tel (03) 9788 1200

MorningtonTHE MORNINGTON CENTRE24 Separation Street Mornington Vic 3931 Tel (03) 5976 9000

MORNINGTON COMMUNITY HEALTH 62 Tanti Avenue Mornington Vic 3931Tel (03) 5970 2000

RosebudROSEBUD HOSPITAL1527 Point Nepean Road Rosebud West Vic 3940Tel (03) 5986 0666

ROSEBUD REHABILITATION SERVICE1527 Point Nepean Road Rosebud West Vic 3940

Hillview Rehabilitation WardTel (03) 5986 0666

Rosebud Community Rehabilitation ServiceTel (03) 5986 3344

ROSEBUD COMMUNITY HEALTH38 Braidwood Avenue Rosebud West Vic 3940Tel (03) 5986 9250


SeafordMICHAEL COURT RESIDENTIAL AGED CARE HOSTEL10 Michael Court Seaford Vic 3198Tel (03) 9785 3744

Peninsula HealthABN 52 892 860 159

Hastings Road (PO Box 52) Frankston Vic 3199 Tel (03) 9784 7777 Callers outside the Melbourne Metropolitan Area Tel 1800 858 727

peninsulahealth.org.au

Financial Statements

Annual Report 2014

Table of Contents

PageFinancial StatementsChairperson's, Chief Executive Officer's and Chief Finance & Accounting Officer's Declaration 1Auditor-General's Report 2Comprehensive Operating Statement 4Balance Sheet 5Statement of Changes in Equity 6Cash Flow Statement 7Notes1 Summary of Significant Accounting Policies 82 Revenue 242a Analysis of Revenue by Source 252b Patient and Resident Fees 262c Net Gain/(Loss) on Disposal of Non Financial Assets 262d Assets Received Free of Charge 263 Analysis of Expenses by Source 27

3aAnalysis of Expenses by Internally managed and Restricted Specific Purpose Funds for Services Supported by Hospital & Community Initiatives 28

4 Depreciation and Amortisation 285 Cash and Cash Equivalents 286 Receivables 297 Investments and Other Financial Assets 308 Inventories 309 Other Assets 3010 Property, Plant and Equipment 3111 Intangible Assets 3512 Payables 3513 Borrowings 3514 Provisions 3615 Other Liabilities 3716 Equity 3717 Reconciliation of Net Result for the Year to Net Cash Inflow/(Outflow) from Operating Activities 3818 Financial Instruments 3919 Commitments for Expenditure and Contingencies 4420 Segment Reporting 4521 Responsible Persons Disclosures 4722 Executive Officer Disclosures 4823 Remuneration of Auditors 4824 Ex Gratia Payments 4825 Subsequent Events 4826 Discontinued Operation 49

Peninsula HealthComprehensive Operating StatementFor the financial year ended 30 June 2014

Note 2014 2013$'000 $'000

Revenue from Operating Activities 2 463,637 439,791

Revenue from Non-Operating Activities 2 1,825 1,351

Employee Expenses 3 (351,248) (334,630)

Non Salary Labour Costs 3 (3,172) (3,182)

Supplies & Consumables 3 (56,902) (55,078)

Other Expenses 3 (53,498) (46,767)Net Result from Continuing Operations Before Capital & Spe cific Items 642 1,485

Capital Purpose Income 2 52,970 20,772 Available-for-Sale Revaluation Reserve Surplus Recognised 2 220 320

Assets Received Free of Charge 2 9,859 -

Reversal of impairment on Non Financial Assets 3 5,286 -

Impairment of Financial Assets 3 (724) - Depreciation & Amortisation 4 (25,200) (22,483)

Finance Costs 13 (491) - Net Result from Continuing Operations 42,562 94

Gain/(Loss) from Discontinued Operation 26 - (1,952)NET RESULT FOR THE YEAR 42,562 (1,858)

Other Comprehensive IncomeItems that will not be reclassified to net result

- Net fair value revaluation on Non Financial Assets 16a 8,794 -

Items that may be reclassifed subsequently to net result

- Net fair value gains/(losses) on Available-for-Sale Financial Investments 16a 959 1,217

COMPREHENSIVE RESULT FOR THE YEAR 52,315 (641)

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

4

Peninsula HealthBalance SheetAs at 30 June 2014

Note 2014 2013$'000 $'000

Current AssetsCash and Cash Equivalents 5 26,881 10,737

Receivables 6 17,925 17,869

Investments and Other Financial Assets 7 16,281 12,928

Inventories 8 2,241 2,322

Other Assets 9 662 673

Total Current Assets 63,990 44,529

Non-Current AssetsReceivables 6 9,233 7,398 Property, Plant & Equipment 10 358,110 320,563 Intangible Assets 11 9,003 - Total Non-Current Assets 376,346 327,961 TOTAL ASSETS 440,336 372,490

Current LiabilitiesPayables 12 23,879 16,522 Borrowings 13 948 1,015 Provisions 14 80,590 74,559 Other Liabilities 15 577 212 Total Current Liabilities 105,994 92,308

Non-Current LiabilitiesBorrowings 13 8,814 8,223 Provisions 14 12,518 11,768 Total Non-Current Liabilities 21,332 19,991 TOTAL LIABILITIES 127,326 112,299 NET ASSETS 313,010 260,191

EQUITYProperty, Plant & Equipment Revaluation Surplus 16a 68,067 59,273 Financial Asset Available for Sale Revaluation Surplus 16a 2,948 1,485 Contributed Capital 16b 191,923 191,923 Accumulated Surpluses/(Deficits) 16c 50,072 7,510 TOTAL EQUITY 313,010 260,191

Commitments for Expenditure 19Contingent Assets and Contingent Liabilities 19


5

Peninsula HealthStatement of Changes in EquityFor the financial year ended 30 June 2014

Property, Plant &

Equipment Revaluation

Surplus

Financial Asset

Available for Sale

Revaluation Surplus

Contributed Capital

Accumulated Surpluses/ (Deficits)

Total

Note $'000 $'000 $'000 $'000 $'000Balance at 1 July 2012 16 59,273 588 191,923 9,368 261,152 Net result for the year - - - (1,858) (1,858)Transfer to Accumulated Surplus - on disposal - (320) - - (320)Other Comprehensive Income for the year - 1,217 - - 1,217

Balance at 30 June 2013 59,273 1,485 191,923 7,510 260,191

Net result for the year - - - 42,562 42,562 Transfer to Accumulated Surplus - impairment - 724 - - 724 Transfer to Accumulated Surplus - on disposal 16a - (220) - - (220)Other Comprehensive Income for the year 16a 8,794 959 - - 9,753

Balance at 30 June 2014 68,067 2,948 191,923 50,072 313,010


6

Peninsula HealthCash Flow StatementFor the financial year ended 30 June 2014

Note 2014 2013$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESOperating Grants from Government 396,671 378,740 Patient and Resident Fees Received 31,252 20,928 Commonwealth Government-Residential Aged Care Subsidy 4,686 6,783 Interest Received 1,098 644 Dividends Received 728 707 Donations and Bequests Received 663 1,027 Other Receipts 29,961 24,710 Total receipts 465,059 433,539 Employee Expenses Paid (344,116) (334,435)Non Salary Labour Costs Paid (3,172) (3,182)Payments for Supplies & Consumables (112,259) (92,011)Finance Costs Paid (491) - Total payments (460,038) (429,628)Cash Generated from Operations 5,021 3,911

Capital Grants from Government 48,578 17,936 Capital Donations and Bequests Received 1,620 415 Other Capital Receipts 531 -

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 17 55,750 22,262

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Investments (5,989) (4,332)Payments for Non-Financial Assets (42,355) (34,375)Proceeds from Sale of Rosebud Residential Aged Care 26 1,954 1,856 Proceeds from Sale of Non-Financial Assets 2,667 351 Proceeds from Sale of Investments 3,593 3,804

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (40,130) (32,696)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from Borrowings 744 9,111

Repayment of Borrowings (220) -

NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES 524 9,111

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT S HELD 16,144 (1,323)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 10,737 12,060

CASH AND CASH EQUIVALENTS AT END OF YEAR 5 26,881 10,737

Non-Cash Financing and Investing Activities - -


7

PPeenniinnssuullaa HHeeaalltthh AAnnnnuuaall FFiinnaanncciiaall SSttaatteemmeennttss 22001144

NNootteess ttoo TThhee FFiinnaanncciiaall SSttaatteemmeennttss ffoorr tthhee yyeeaarr eennddeedd 3300 JJuunnee 22001144

8

NNoottee 11:: SSuummmmaarryy ooff SSiiggnnii ff iiccaanntt AAccccoouunntt iinngg

PPooll iicciieess

These annual financial statements represent the audited general purpose financial statements for Peninsula Health for the period ending 30 June 2014. The purpose of the report is to provide users with information about the Health Service’s stewardship of resources entrusted to it.

((aa)) SSttaatteemmeenntt ooff ccoommppll iiaannccee

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) issued by the Australian Accounting

Standards Board (AASB). They are presented in a

manner consistent with the requirements of AASB 101

Presentation of Financial Statements.

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.

Peninsula Health is a not-for profit entity and therefore

applies the additional “Aus” paragraphs applicable to

‘not-for-profit’ Health Services under the AASs.

The annual Financial Statements were authorised for

issue by the Board of Directors of Peninsula Health on

19 August 2014.

((bb)) BBaassiiss ooff aaccccoouunntt iinngg pprreeppaarraatt iioonn aanndd

mmeeaassuurreemmeenntt

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 2014, and the comparative

information presented in these Financial Statements

for the year ended 30 June 2013.

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 the revaluation

less any subsequent accumulated depreciation

and subsequent impairment losses. Revaluations

are made and are re-assessed with sufficient

regularity to ensure that the carrying amounts do

not materially differ from their fair values;

• Available-for-sale investments which are measured

at fair value with movements reflected in equity

until the asset is derecognised; and

• The fair value of assets other than land is generally

based on their depreciated replacement value.

Historical cost is based on the fair values of the

consideration given in exchange for assets.

In the application of AASs management is required to

make judgements, estimates and assumptions about

carrying values of assets and liabilities that are not

readily apparent from other sources. The estimates

and associated assumptions are based on

professional judgement derived from historical

experience and various other factors that are believed

to be reasonable under the circumstances. Actual

results may differ from these estimates.

The estimates and underlying assumptions are

reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in

which the estimate is revised if the revision affects

only that period or in the period of the revision, and

future periods if the revision affects both current and

future periods.

Judgements and assumptions made by management

in the application of AASs that have significant effects

on the Financial Statements and estimates relate to



9

the fair value of land, buildings, infrastructure, plant

and equipment (refer to note 1 (k).

Consistent with AASB 13 Fair Value Measurement,

Peninsula Health determines the policies and

procedures for both recurring fair value measurements

such as property, plant and equipment and financial

instruments, and for non-recurring fair value

measurements such as non-financial physical assets

held for sale, in accordance with the requirements of

AASB 13 and the relevant FRDs.

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 unobservable.

For the purpose of fair value disclosures, Peninsula 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, Peninsula 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 Peninsula Health’s independent valuation agency.

Peninsula Health, in conjunction with VGV monitors

the changes in the fair value of each asset and liability

through relevant data sources to determine whether

revaluation is required. Refer to Note 10 for a

description of the valuation processes used.

((cc)) RReeppoorrtt iinngg EEnntt ii ttyy

The Financial Statements include all the controlled

activities of Peninsula Health.

Its principal address is:

Hastings Road (PO Box 52)

Frankston Victoria 3199

A description of the nature of Peninsula Health’s

operations and its principal activities are included in

the report of operations, which does not form part of

these Financial Statements.

Objectives and funding

Peninsula Health embraces an integrated and

collaborative view of health, working with community

and service partners to promote health and to plan for

the future needs of the local community of Frankston

and the Mornington Peninsula.

Peninsula Health provides acute care, sub acute care,

residential care, mental health services and community

health services, and is a major teaching centre.

Peninsula Health is predominantly funded by grants for

the provision of outputs in these areas.

((dd)) SSccooppee aanndd PPrreesseennttaatt iioonn ooff FFiinnaanncciiaall

SSttaatteemmeennttss

FFuunndd AAccccoouunntt iinngg

Peninsula Health operates on a fund accounting

basis and maintains three funds: Operating, Specific

Purpose and Capital Funds. Peninsula Health’s

Capital and Specific Purpose Funds include unspent

capital donations and receipts from fund-raising

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 include Residential

Aged Care Services (RACS) which 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 Peninsula Health’s own activities or local

initiatives and/or the Commonwealth.

Residential Aged Care Services

Carinya Nursing Home and Michael Court Hostel are

part of Peninsula Health’s operations and share its

resources. Where appropriate an apportionment of land

and buildings has been made based on floor space.

The results of these operations have been segregated

based on actual revenue earned and expenditure

incurred by each operation in Note 2a, Note 3 and Note



10

26 to the Financial Statements. Rosebud Aged Care

Service was sold on 2 April 2013. Carinya Nursing

Home and Michael Court Hostel are substantially

funded from Commonwealth bed-day subsidies.

Comprehensive Operating Statement

The Comprehensive operating statement includes the

subtotal entitled ‘Net Result from continuing

operations Before Capital & Specific Items’ to

enhance the understanding of the financial

performance of Peninsula 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 from continuing operations Before Capital &

Specific Items’ is used by the management of

Peninsula Health, the Department of Health 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 Write-down of inventories

o Non-current asset revaluation

o Diminution/impairment of investments;

• 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) and (i);

• Depreciation and amortisation, as described in

note 1(g);

• Assets provided or received free of charge (refer to

Notes 1 (f); and

• 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 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 the

notes where relevant.

Statement of Changes in Equity

The Statement of Changes in Equity presents

reconciliations of each non-owner and owner equity

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.

Comparative Information

Where necessary, figures for the previous year have

been reclassified to facilitate comparison where

requested by the applicable accounting standards.

RRoouunnddiinngg ooff AAmmoouunnttss

All amounts shown in the Financial Statements are

expressed to the nearest $1,000 unless otherwise

stated.

((ee)) CChhaannggee iinn AAccccoouunntt iinngg PPooll iicciieess

AASB 13 Fair Value Measurement

AASB 13 establishes a single source of guidance

for all fair value measurements. AASB 13 does not

change when a health service is required to use

fair value, but rather provides guidance on how to



11

measure fair value under Australian Accounting

Standards when fair value is required or permitted.

Peninsula Health has considered the specific

requirements relating to highest and best use,

valuation premise, and principal (or most

advantageous) market. The methods,

assumptions, processes and procedures for

determining fair value were revised and adjusted

where applicable. In light of AASB 13, the health

service has reviewed the fair value principles as

well as its current valuation methodologies in

assessing the fair value, and the assessment has

not materially changed the fair values recognised.

AASB 13 has predominantly impacted the

disclosures of the Peninsula Health. It requires

specific disclosures about fair value

measurements and disclosures of fair values,

some of which replace existing disclosure

requirements in other standards, including AASB 7

Financial Instruments: Disclosures.

The disclosure requirements of AASB 13 apply

prospectively and need not to be provided for

comparative periods, before initial application.

Consequently, comparatives of these disclosures

have not been provided for 2012-13, except for

financial instruments, of which the fair value

disclosures are required under AASB 7 Financial

Instruments Disclosures.

AASB 119 Employee Benefits

In 2013-14, Peninsula Health has applied AASB

119 Employee Benefits (Sep 2011, as amended),

and related consequential amendments for the first

time.

The revised AASB 119 changes the accounting for

defined benefit plans and termination benefits. The

most significant change relates to the accounting for

changes in defined benefit obligation and plan

assets. As the current accounting policy is for the

Department of Treasury and Finance to recognise

and disclose the State’s defined benefit liabilities in

its financial statements, changes in defined benefit

obligations and plan assets will have limited impact

on the health service.

The revised standard also changes the definition

of short-term employee benefits. These were

previously benefits that were expected to be

settled within 12 months after the end of the

reporting period in which the employees render the

related service, however, short-term employee

benefits are now defined as benefits expected to

be settled wholly within 12 months after the end of

the reporting period in which the employees render

the related service. As a result, accrued annual

leave balances which were previously classified as

short-term employee benefits no longer meet this

definition and are now classified as long-term

employee benefits. This has resulted in a change

of measurement for the annual leave provision

from an undiscounted to discounted basis.

Peninsula Health considers the change in

classification has not materially altered its

measurement of the annual leave provision.

((ff )) IInnccoommee ff rroomm ttrraannssaacctt iioonnss

Income is recognised in accordance with AASB 118

Revenue and is recognised to the extent that it is

probable that the economic benefits will flow to

Peninsula 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.

GGoovveerrnnmmeenntt GGrraannttss aanndd ootthheerr tt rraannssffeerrss ooff iinnccoommee

((ootthheerr tthhaann ccoonnttrr iibbuutt iioonnss bbyy oowwnneerrss))

In accordance with AASB 1004 Contributions,

government grants and other transfers of income

(other than contributions by owners) are recognised

as income when Peninsula Health 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.

IInnddiirreecctt CCoonnttrr iibbuutt iioonnss ff rroomm tthhee DDeeppaarrttmmeenntt ooff

HHeeaall tthh

• Insurance is recognised as revenue following

advice from the Department of Health.

• Long Service Leave (LSL) – Revenue is

recognised upon finalisation of movements in LSL



12

liability in line with the arrangements set out in the

Hospital Circular 05/2013.

PPaatt iieenntt aanndd RReessiiddeenntt FFeeeess

Patient fees are recognised as revenue at the time

invoices are raised.

PPrriivvaattee PPrraacctt iiccee FFeeeess

Private practice fees are recognised as revenue at the

time invoices are raised.

RReevveennuuee ff rroomm ccoommmmeerrcciiaall aacctt iivv ii tt iieess

Revenue from commercial activities such as

commercial laboratory medicine is recognised at the

time invoices are raised or accrued when a service is

performed.

DDoonnaatt iioonnss aanndd OOtthheerr BBeeqquueessttss

Donations and bequests are recognised as revenue

when received. If donations are for a special purpose,

they may be appropriated to a reserve, such as the

Specific Restricted Purpose Surplus.

DDiivv iiddeenndd RReevveennuuee

Dividend revenue is recognised when the right to

receive payment is established.

IInntteerreesstt RReevveennuuee

Interest revenue is recognised on a time proportionate

basis, in that it takes into account the effective yield of

the financial asset, which allocates interest over the

relevant period.

SSaallee ooff iinnvveessttmmeennttss

The gain/loss on the sale of investments is recognised

when the investment is realised.

FFaaiirr vvaalluuee ooff aasssseettss aanndd sseerrvviicceess rreecceeiivveedd ff rreeee ooff cchhaarrggee oorr ffoorr nnoommiinnaall ccoonnssiiddeerraatt iioonn

Resources 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 Health Service 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 service would have been purchased if not received as a donation.

Other income

Other income includes non-property rental, forgiveness

of liabilities, and bad debt reversals.

((gg)) EExxppeennssee RReeccooggnnii tt iioonn

Expenses are recognised as they are incurred and

reported in the financial year to which they relate.

Cost of goods sold

Costs of goods sold are recognised when the sale of an

item occurs by transferring the cost or value of the

item/s from inventories.

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 contribution (i.e. accumulation)

superannuation plans, the associated expense is

simply the employer contributions that are paid or

payable in respect of employees who are members of

these plans during the reporting period. Contributions

to defined contribution superannuation plans are

expensed when incurred.

Defined benefit superannuation plans

The amount charged to the comprehensive operating

statement in respect of defined benefit

superannuation plans represents the contributions

made by Peninsula Health to the superannuation

plans in respect of the services of current 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 Peninsula Health are entitled to receive

superannuation benefits and Peninsula Health

contributes to both the defined benefit and defined

contribution plans. The defined benefit plan(s)

provide benefits based on years of service and final

average salary.



13

The name and details of the major employee

superannuation funds and contributions made by

Peninsula Health are as follows:

Contributions Paid or Payable for the year

Fund 2014 2013

Defined benefit plans: $’000 $’000

Hospital Superannuation Fund 442 530

Government Superannuation

Fund 265 46

Defined contribution plans:

Hospital Superannuation Fund 17,180 16,266

Other Funds 8,070 8,923

Total 25,957 25,765

Contributions outstanding at the

end of the financial year 876 755

Depreciation

All infrastructure assets, buildings, plant and equipment

and other non-financial physical assets that have finite

useful lives are depreciated (i.e. excludes land assets

held for sale, and investment properties). Depreciation

begins when the asset is available for use, which is

when it is in the location and condition necessary for it

to be capable of operating in a manner intended by

management.

Intangible assets with finite lives are depreciated as an

expense from transactions on a systematic basis over

the asset’s useful life. Depreciation is generally

calculated on a straight line basis, at a rate that

allocates the asset value, less any estimated residual

value over its estimated useful life. Estimates of the

remaining useful lives, residual value and depreciation

method for all assets are reviewed at least annually,

and adjustments made where appropriate. This

depreciation charge is not funded by the Department of

Health. Assets with a cost in excess of $1,000 (2013:

$1,000) are capitalised and depreciation has been

provided on depreciable assets so as to allocate their

cost or valuation over their estimated useful lives.

The following table indicates the expected useful lives

(in years) of non-current assets on which the

depreciation charges are based.

2014 2013

Buildings

- Structure Shell Building Fabric 20 20

- Site Engineering Services

and Central Plant

20 20

Central Plant

- Fit Out 20 20

- Trunk Reticulated Building

Systems

20 20

Plant & Equipment 5 to 10 5 to 10

Medical Equipment 3 to 10 3 to 10

Computers and Communication 3 3

Furniture and Fitting 7 to 10 7 to 10

Motor Vehicles 4 4

Leasehold Improvements 8 to 10 8 to 10

Other Equipment 5 to 10 5 to 10

Intangible Assets Up to 7 n/a

As part of the Buildings valuation, building values

were componentised and each component assessed

for its useful life which is represented above.

Amortisation

Amortisation is allocated to intangible assets with

finite useful lives on a systematic (typically straight-

line) basis over the asset’s useful life. Amortisation

begins when the asset is available for use, that is,

when it is in the location and condition necessary for it

to be capable of operating in the manner intended by

management. The consumption of intangible assets

with finite useful lives is classified as amortisation.

The amortisation period and the amortisation method

for an intangible asset with a finite useful life are

reviewed at least at the end of each annual reporting

period. In addition, an assessment is made at each

reporting date to determine whether there are

indicators that the intangible asset concerned is

impaired. If so, the assets concerned are tested as to

whether their carrying value exceeds their recoverable

amount. Any excess of the carrying amount over the

recoverable amount is recognised as an impairment

loss.

Intangible assets with finite useful lives are amortised

over a three to seven year period.

Finance costs

Finance costs are recognised as expenses in the period

in which they are incurred.



14

Finance costs include:

• interest on bank overdrafts and short-term and

long-term borrowings (Interest expense is

recognised in the period in which it is incurred);

• amortisation of discounts or premiums relating to

borrowings; and

• amortisation of ancillary costs incurred in

connection with the arrangement of borrowings.

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 services costs are recognised as an

expense in the reporting period in which they are

incurred. The carrying amounts of any inventories

held for distribution are expensed when distributed.

Bad and doubtful debts

Refer to Note 1 (j) Impairment of financial assets.

(h) Other comprehensive income

Other comprehensive income measures the change in

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 from

revaluation gains/(losses) of non-financial physical

assets (refer to Note 1(j)).

Net gain/(loss) on 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 the time.

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 to

Note 1 (i); and • disposals of financial assets and derecognition of

financial liabilities

Revaluations of financial instrument at fair value

Refer to Note 1 (i) Financial instruments.

Other gains/ (losses) from other comprehensive

income

Other gains/ (losses) include the revaluation of the

present value of the long service leave liability due to

changes in the bond interest rates and transfer of

amounts from the reserves to accumulated surplus or

net result due to disposal or derecognition or

reclassification.

(i) Financial instruments

Financial instruments arise out of contractual

agreements that give rise to a financial asset of one

entity and a financial liability or equity instrument of

another entity. Due to the nature of the Peninsula

Health’s activities, certain financial assets and financial

liabilities arise under statute rather than a contract.

Such financial assets and financial liabilities do not

meet the definition of financial instruments in AASB 132

Financial Instruments: Presentation. For example,

statutory receivables arising from taxes, fines and

penalties do not meet the definition of financial

instruments as they do not arise under contract.

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.

The following refers to financial instruments unless

otherwise stated.

Categories of non-derivative financial instruments

Financial assets at fair value through profit or lo ss

Financial assets are categorised as fair value through

profit or loss at trade date if they are classified as held

for trading or designated as such upon initial

recognition. Financial instrument assets are designated

at fair value through profit or loss on the basis that the

financial assets form part of a group of financial assets

that are managed by the Health Service concerned

based on their fair values, and have their performance

evaluated in accordance with documented risk

management and investment strategies.

Financial instruments at fair value through profit or loss

are initially measured at fair value and attributable

transaction costs are expensed as incurred.

Subsequently, any changes in fair value are recognised

in the net result as other comprehensive income. Any



15

dividend or interest on a financial asset is recognised in

the net result for the year.

Loans and receivables

Trade receivables, loans, term deposits with maturity

greater than three months and other receivables are

initially recognised at fair value plus any directly

attributable transaction costs. Subsequent to initial

measurement, loans and receivables are measured at

amortised cost, using the effective interest method,

less impairment. Term deposits with maturity greater

than three months are also measured at amortised

cost, using the effective interest method, less

impairment.

The effective interest method is a method of

calculating the amortised cost of a financial asset and

of allocating interest income over the relevant period.

The effective interest rate is the rate that exactly

discounts estimated future cash receipts through the

expected life of the financial asset, or, where

appropriate, a shorter period.

Held-to-maturity investments

If the Health Service has the positive intent and ability

to hold nominated investments to maturity, then such

financial assets may be classified as held-to-maturity.

Held-to-maturity financial assets are recognised initially

at fair value plus any directly attributable transaction

costs. Subsequent to initial recognition held-to-maturity

financial assets are measured at amortised cost using

the effective interest method, less any impairment

losses.

The Health Service makes limited use of this

classification because any sale or reclassification of

more than an insignificant amount of held-to-maturity

investments not close to their maturity, would result in

the whole category being reclassified as

available-for-sale. The Health Service would also be

prevented from classifying investment securities as

held-to-maturity for the current and the following two

financial years.

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

18.

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.

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.

((jj )) FFiinnaanncciiaall AAsssseettss

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 with an insignificant risk of changes in value. For

the cash flow statement presentation purposes, cash

and cash equivalents includes bank overdrafts, which

are included as current borrowings in the balance

sheet.



16

Receivables

Receivables consist of:

• Statutory receivables, which include

predominantly amounts owing from the Victorian

Government and GST input tax credits

recoverable; and

• Contractual receivables, which are comprised of

mainly debtors in relation to goods and services

and accrued investment income.

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 uncollectable are written off. A provision for

doubtful debts is recognised when there is objective

evidence that the debts may not be collected and bad

debts are written off when identified.

Receivables that are contractual are classified as

financial instruments and categorised as loans and

receivables.

Receivables are recognised initially at fair value and

subsequently measured at amortised cost, using the

effective interest method, less any accumulated

impairment.

Investments and Other Financial Assets

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:

• Financial assets at fair value through profit or

loss;

• Held-to-maturity;

• Loans and receivables; and

• Available-for-sale financial assets.

Peninsula 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.

Peninsula Health assesses at each reporting date

whether a financial asset or group of financial assets

is impaired.

All financial assets, except those measured at fair

value through profit or loss are subject to annual

review for impairment.

Impairment of Financial Assets

At the end of each reporting period, Peninsula Health

assesses whether there is objective evidence that a

financial asset or group of financial asset is impaired.

All financial instrument assets, except those

measured at fair value through profit or loss, are

subject to annual review for impairment. Objective

evidence includes financial difficulties of the debtor,

default payments, debts which are more than 60 days

overdue, and changes in debtor credit ratings.

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 debt 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 reporting date has reduced by 20

percent or more than its cost price or where its fair

value has been 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 2014 for its portfolio of financial assets,

Peninsula Health used the quoted market price for

each individual holding. The quoted market price has

been advised by reputable financial institutions. The

above valuation process was used to quantify the

level of impairment on the portfolio of financial assets

at year end.

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



17

computational methods in accordance with AASB 136

Impairment of Assets.

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 flows 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.

((kk)) NNoonn--FFiinnaanncciiaall AAsssseettss

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.

The basis used in assessing loss of service potential

for inventories held for distribution include current

replacement cost and technical or functional

obsolescence. Technical obsolescence occurs when

an item still functions for some or all of the tasks it

was originally acquired to do, but no longer matches

existing technologies. Functional obsolescence

occurs when an item no longer functions the way it did

when it was first acquired.

Inventories acquired for no cost or nominal

considerations are measured at current replacement

cost at the date of acquisition.

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.

More details about the valuation techniques and

inputs used in determining the fair value of non-

financial physical assets are discussed in Note 10

Property, plant and equipment.

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

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.

Leasehold improvements

The cost of a leasehold improvement is capitalised as

an asset and depreciated over the shorter of the

remaining term of the lease or the estimated useful life

of the improvements.

Revaluations of Non-current Physical Assets

Non-current physical assets are measured at fair value

and are revalued in accordance with FRD 103E 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



18

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 result, the

increment is recognised as income in the net result.

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 is not normally transferred to

accumulated funds on derecognition of the relevant

asset.

In accordance with FRD 103E, Peninsula Health’s non-

current physical assets were assessed to determine

whether revaluation of the non-current physical assets

was required.

Intangible Assets

Intangible assets represent identifiable non-monetary

assets without physical substance such as patents,

trademarks, and computer software and development

costs (where applicable).

Intangible assets are initially recognised at cost.

Subsequently, intangible assets with finite useful lives

are carried at cost less accumulated amortisation and

accumulated impairment losses. Costs incurred

subsequent to initial acquisition are capitalised when it

is expected that additional future economic benefits

will flow to Peninsula Health.

Other non-financial assets

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 to note 1(h) – ‘comprehensive income’.

Impairment of Non-Financial Assets

All assets of Peninsula Health are assessed annually

for indications of impairment, except for;

• inventories; 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 to sell. Recoverable

amount for assets held primarily to generate net cash

inflows is measured at the higher of the present value



19

of future cash flows expected to be obtained from the

asset and fair value less costs to sell.

((ll )) LLiiaabbii ll ii tt iieess

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 Net 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.

Borrowings

All borrowings are initially recognised at fair value of

the consideration received, less directly attributable

transaction costs. The measurement basis

subsequent to initial recognition for liabilities is

amortised cost. Any difference between the initial

recognised amount and the redemption value is

recognised in net result over the period of the

borrowings using the effective interest method.

Provisions

Provisions are recognised when Peninsula Health has

a present obligation, the future sacrifice of economic

benefits is probable, and the amount of the provision

can be measured reliably.

The amount recognised as a provision is the best

estimate of the consideration required to settle the

present obligation at reporting date, taking into

account the risks and uncertainties surrounding the

obligation. Where a provision is measured using the

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 and Accrued

Days Off

Liabilities for wages and salaries, including non-

monetary benefits and annual leave are all recognised

in the provision for employee benefits as ‘current

liabilities’, because Peninsula Health 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

The liability for long service leave (LSL) is recognised

in the provision for employee benefits.

Current Liability – 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 Peninsula 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:



20

• 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.

Non-Current Liability – conditional LSL

(representing less than 10 years of continuous

service) 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 decides to accept an offer of benefits in

exchange for termination of employment.

Peninsula Health 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.

On-Costs

Employee benefit on-costs, such as workers

compensation and superannuation are recognised

together with provisions for employee benefits.

Superannuation liabilities

Peninsula 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.

The Department of Treasury and Finance administers

and discloses the State’s defined benefit liabilities in

its Financial Statements.

Onerous contracts

An onerous contract is considered to exist when the

Health Service has a contract under which the

unavoidable cost of meeting the contractual obligation

exceeds the estimated economic benefits to be

received. Present obligations arising under onerous

contracts are recognised as a provision to the extent

that the present obligation exceeds the estimated

economic benefits to be received.

Make good provisions

Make good provisions are recognised when Peninsula

Health has contractual obligations to remove leasehold

improvements from leased properties and restore the

leased premises to their original condition at the end of

the lease term. The related expenses of making good

such properties are recognised when leasehold

improvements are made.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation

under the liability is discharged, cancelled or expires.

When an existing financial liability is replaced by

another from the same lender on substantially different

terms, or the terms of an existing liability are

substantially modified, such an exchange or

modification is treated as a derecognition of the original

liability and the recognition of a new liability. The

difference in the respective carrying amounts is

recognised as an expense in the comprehensive

operating statement.

((mm)) LLeeaasseess

A lease is a right to use an asset for an agreed period

of time in exchange for payment. Leases are classified

at their inception as either operating or finance leases

based on the economic substance of the agreement so

as to reflect the risks and rewards incidental to

ownership.

Leases of property, plant and equipment are classified

as finance leases whenever the terms of the lease

transfer substantially all the risks and rewards of

ownership to the lessee.

All other leases are classified as operating leases.



21

Operating Leases as a lessee

Operating lease payments, including any contingent

rentals, are recognised as an expense in the

comprehensive operating statement on a straight line

basis over the lease term, except where another

systematic basis is more representative of the time

pattern of the benefits derived from the use of the

leased asset. The leased asset is not recognised in the

balance sheet.

Lease Incentives

All incentives for the agreement of a new or renewed

operating lease are recognised as an integral part of the

net consideration agreed for the use of the leased

asset, irrespective of the incentive’s nature or form or

the timing of payments.

In the event that lease incentives are received by the

lessee to enter into operating leases, such incentives

are recognised as a liability. The aggregate benefits of

incentives are recognised as a reduction of rental

expense on a straight-line basis, except where another

systematic basis is more representative of the time

pattern in which economic benefits from the leased

asset is diminished.

Leasehold Improvements

The cost of leasehold improvements are capitalised as

an asset and depreciated over the remaining term of

the lease or the estimated useful life of the

improvements, whichever is the shorter.

((nn)) EEqquuii ttyy

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 that have been

designated as contributed capital are also treated as

contributed capital.

Property, Plant & Equipment Revaluation Surplus

The asset revaluation surplus is used to record

increments and decrements on the revaluation of non-

current physical assets.

Financial Assets Available-for-Sale Revaluation

Surplus

The available-for-sale revaluation surplus arises on

the revaluation of available-for-sale financial assets.

Where a revalued financial asset is sold, that portion

of the surplus which relates to that financial asset is

effectively realised, and is recognised in the

comprehensive operating statement. Where a

revalued financial asset is impaired, that portion of the

surplus which relates to that financial asset is

recognised in the comprehensive operating statement.

((oo)) CCoommmmiittmmeennttss

Commitments for future expenditure include operating

and capital commitments arising from contracts. These

commitments are disclosed by way of a note (refer to

note 19) at their nominal value and are inclusive of the

GST payable. In addition, where it is considered

appropriate and provides additional relevant information

to users, the net present values of significant individual

projects are stated. These future expenditures cease to

be disclosed as commitments once the related liabilities

are recognised on the balance sheet.

((pp)) CCoonntt iinnggeenntt aasssseettss aanndd ccoonntt iinnggeenntt ll iiaabbii ll ii tt iieess

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.

((qq)) GGooooddss aanndd SSeerrvviicceess TTaaxx

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 it 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



22

payable to the taxation authority, are presented as an

operating cash flow.

Commitments for expenditure and contingent assets

and liabilities are presented on a gross basis.

((rr)) CCaatteeggoorryy GGrroouuppss

Peninsula Health has used the following category

groups for reporting purposes for the current and

previous financial years.

Acute Care comprises all recurrent health

revenue/expenditure on admitted patient services,

where services are delivered in public hospitals, or

free standing day hospital facilities, or palliative care

facilities, or rehabilitation facilities. It also includes

revenue/expenditure on outpatient and emergency

department services.

Mental Health comprises all recurrent health

revenue/expenditure on specialised mental health

services (child and adolescent, general adult and

community) managed or funded by the State, and

includes: admitted patient services, outpatient

services, community based services and ambulatory

services.

Residential Aged Care comprises all recurrent

revenue/expenditure on high level and low level

residential aged care facilities.

Residential Aged Care-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 DH 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.

Aged Care comprises revenue/expenditure from

Home and Community Care (HACC) programs, Allied

Health, Aged Care Assessment and support services.

This category also includes the MEPACS personal

alarm monitoring service.

MEPACS provides personal alarm services to private

clients, government funded (PAV) clients, and some

research activities. Personal Alert Victoria (PAV) is a 24

hour personal monitoring service that responds to calls

for assistance and is funded by the Victorian

Government through the Department of Health.

Primary Health comprises revenue/expenditure for

Community Health Services including health

promotion and counselling, physiotherapy, speech

therapy, podiatry and occupational therapy.

((ss)) EEccoonnoommiicc ddeeppeennddeennccyy

The Health Service is reliant on the Department of

Health for a substantial part of its revenue.

((tt )) GGooiinngg ccoonncceerrnn

Notwithstanding the operating surplus from continuing

operations for the year of $42,562,000 (2013: surplus of

$94,000) and working capital deficiency of $42,004,000

(2013: $47,779,000) the Financial Statements have

been prepared on a going concern basis.

Peninsula Health generated cash flows from operations

in the financial year of $5,021,000 (2013: $3,911,000)

and has a reporting date net asset position of

$313,010,000 (2013: $260,191,000). A breakeven

result is budgeted in the 2014/15 financial year.

The extent to which current liabilities exceed current

assets is regularly reviewed by the Board of Directors

using an adjusted working capital ratio which reflects

the expected settlement date of employee entitlement

liabilities. This adjusted measure of liquidity further

supports the going concern basis adopted by the Board.

((uu)) DDiissccoonntt iinnuueedd ooppeerraatt iioonnss

A discontinued operation is a component of the Health

Service that has been disposed of and represents a

separate major line of business. The results of

discontinued operations are presented separately in the

comprehensive operating statement.



23

((vv)) NNeeww AAccccoouunntt iinngg SSttaannddaarrddss ffoorr AAppppll iiccaatt iioonn iinn FFuuttuurree PPeerriiooddss

Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2014 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 2014, 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. Peninsula Health has not and does not intend to adopt these standards early.

Standard/Interpretation Summary Applicable for

annual reporting periods beginning on

Impact on Health Services Financial Statements

AASB 9 Financial Instruments This standard simplifies requirements

for the classification and measurement

of financial assets resulting from

Phase 1 of the IASB’s project to

replace IAS 39 Financial Instruments:

Recognition and Measurement

(AASB 139 Financial Instruments:

Recognition and Measurement).

1 Jan 2017 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.

In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2013-14 reporting period. In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on the Health Service.

HSA HSA H&CI H&CI Total Total2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000

Government Grants- Department of Health 82,475 209,733 - - 82,475 209,733 - Victorian Health Funding Pool 306,518 159,960 - - 306,518 159,960 - Dental Health Services Victoria 8,662 4,585 - - 8,662 4,585 Commonwealth Government - - Residential Aged Care Subsidy 6,348 5,846 - - 6,348 5,846 - Other 11,258 14,784 - - 11,258 14,784

415,261 394,908 - - 415,261 394,908 Indirect Contributions by Department of Health- Insurance 261 556 - - 261 556 - Long Service Leave 1,835 2,101 - - 1,835 2,101

2,096 2,657 - - 2,096 2,657 Patient & Resident Fees-Patient and Resident Fees (refer note 2b) 18,444 19,343 - - 18,444 19,343 -Residential Aged Care (refer note 2b) 1,371 1,259 - - 1,371 1,259

19,815 20,602 - - 19,815 20,602 Commercial Activities & Specific Purpose Funds-Thoracic Medicine - - 416 433 416 433 -Echo Cardiology/Angiography - - 646 564 646 564 -Sleep Laboratory - - 396 246 396 246 -Property Rental - - 195 194 195 194 -Cafeteria & Catering Services - - 1,483 1,198 1,483 1,198 -Car Park - - 2,132 1,379 2,132 1,379 -Other Special Purpose Funds - - 3,488 2,881 3,488 2,881

- - 8,756 6,895 8,756 6,895

Donations & Bequests - - 663 1,027 663 1,027 Recoupment from Private Practice for Use of Hospital Facilities 277 217 - - 277 217 Other Revenue from Operating Activities 16,769 13,485 - - 16,769 13,485

454,218 431,869 9,419 7,922 463,637 439,791

Interest/Dividends - - 1,825 1,351 1,825 1,351 - - 1,825 1,351 1,825 1,351

454,218 431,869 11,244 9,273 465,462 441,142

State Government Capital Grants- Targeted Capital Works and Equipment - - 49,850 20,295 49,850 20,295 Net Gain/(Loss) on Disposal of Non-Financial Assets (refer note 2c) - - 968 62 968 62

Donations & Bequests - 1,620 415 1,620 415

Other Capital Purpose Income - - 532 - 532 -

- - 52,970 20,772 52,970 20,772

Assets Received Free of Charge (refer note 2d) - - 9,859 - 9,859 - Available-for-Sale Revaluation Reserve Surplus recognised - - 220 320 220 320

454,218 431,869 74,293 30,365 528,511 462,234

Peninsula Health Annual Financial Statements 2014Notes to The Financial Statements for the financial year ended 30 June 2014

Total Patient & Resident Fees

Total Revenue from Capital Purpose Income

Total Commercial Activities & Specific Purpose Fund s

Total Revenue from Operating Activities

Revenue from Non-Operating Activities

Note 2: Revenue

Revenue from Operating Activities

Total Revenue from Continuing Operations (refer to note 2a)

Revenue From Capital Purpose Income

Total Government Grants

Total Indirect Contributions by Department of Healt h

Total Revenue from Non-Operating ActivitiesTotal Revenue Operating & Non Operating Activities

24

Note 2a: Analysis of Revenue by SourceResidential Residential

Acute Acute Mental Mental Aged Care- Aged Care- Aged Aged Primary Primary Other Other Total Total

Care Care Health Health Mental Hth Mental Hth Care Care Health Health2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Revenue from Services Supported by Health Services AgreementGovernment grants 336,601 319,186 33,812 31,454 4,321 3,840 17,098 16,459 23,429 23,969 - - 415,261 394,908 Indirect contributions by Department of Health 2,096 2,657 - - - - - - - - - - 2,096 2,657 Patient and Resident Fees (refer note 2b) 18,444 19,343 - - 884 821 487 438 - - - - 19,815 20,602 Recoupment from Private Practice for Use of Hospital Facilities 277 217 - - - - - - - - - - 277 217 Other 9,577 7,764 518 416 82 - 2,315 1,887 4,277 3,418 - - 16,769 13,485 Sub-Total Revenue from Services Supported by Health Services Agreement 366,995 349,167 34,330 31,870 5,287 4,661 19,900 18,784 27,706 27,387 - - 454,218 431,869

Revenue from Services Supported by Hospital and Community InitiativesBusiness Units & Special Purpose Funds - - - - - - - - - - 8,756 6,895 8,756 6,895 Assets Received Free of Charge - - - - - - - - - - 9,859 - 9,859 - Available-for-Sale Revaluation Reserve Surplus Recognised - - - - - - - - - - 220 320 220 320 Donations & Bequests (Non Capital) - - - - - - - - - - 663 1,027 663 1,027 Capital Purpose Income - - - - - - - - - - 49,850 20,295 49,850 20,295 Net Gain/(Loss) from Disposal of Non Current Assets - - - - - - - - - - 968 62 968 62 Donations & Bequests - - - - - - - - - - 1,620 415 1,620 415 Other Capital Purpose Income - - - - - - - - - - 532 - 532 - Interest/Dividends - - - - - - - - - - 1,825 1,351 1,825 1,351 Sub-Total Revenue from Services Supported by Hospit al and Community Initiatives - - - - - - - - - - 74,293 30,365 74,293 30,365

Total Revenue 366,995 349,167 34,330 31,870 5,287 4,661 19,900 18,784 27,706 27,387 74,293 30,365 528,511 462,234

Indirect contributions by the Department of Health:


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

25

Note 2b: Patient and Resident Fees ^2014 2013$'000 $'000

Patient and Resident Fees RaisedAcute– Inpatients (*) 16,441 17,851 – Outpatients 2,003 1,492 Residential Aged Care– Generic (transition care) 487 438 – Psychogeriatric 884 821 Total Patient and Resident Fees Raised 19,815 20,602

Capital Purpose:Residential Accommodation Payments(**) 61 364 Total Capital 61 364

Note 2c: Net Gain/(Loss) on Disposal of Non Financial Assets2014 2013$'000 $'000

Proceeds from Disposals of Non Financial AssetsLand 2,611 - Plant & Equipment 33 - Motor Vehicles 23 351 Total Proceeds from Disposal of Non Financial Assets 2,667 351

Less: Written Down Value of Non Financial Assets SoldLand 1,697 - Plant & Equipment - 89 Motor Vehicles 2 200 Total Written Down Value of Non Financial Assets Sold 1,699 289

Net gains/(losses) on disposal of Non Financial Assets 968 62

Refer to Note 26 for Non Financial Assets disposed of as part of the discontinued operation.

Note 2d: Assets Received Free of Charge2014 2013$'000 $'000

Fair value of assets received free of charge:

- Land 3,662 -

- Buildings 5,784 -

- Building Fixtures & Fittings 413 - Total Assets Received Free of Charge 9,859 -

Peninsula Health Annual Financial Statements 2014

(**) This includes accommodation charges, interest earned on accommodation bonds and retention amount.

(*) Compensable payments (such as TAC, WIES and DVA throughput) are excluded.

^ Patient and Resident Fees excludes recoupment from private practice, or sale of pharmacy goods but includes PBS co-payments. The recoupment from private practice and sale of pharmacy goods is reported separately.

Notes to The Financial Statements for the financial year ended 30 June 2014

26

Note 3: Analysis of Expenses by Source2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013

Residential ResidentialAcute Acute Mental Mental Residential Residential Aged Care- Aged Care- Aged Aged Primary Primary Total Total Total Total TOTAL TOTALCare Care Health Health Aged Care Aged Care Mental Hth Mental Hth Care Care Health Health H.S.A. H.S.A. H&CI H&CI$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Employee Benefits-Salaries & Wages 246,020 232,228 27,161 25,635 - 851 5,845 6,777 9,147 8,535 19,801 18,807 307,974 292,833 4,182 3,715 312,156 296,548 -WorkCover 2,523 3,079 292 338 - 11 63 89 98 94 213 248 3,189 3,859 43 58 3,232 3,917 -Long Service Leave 7,421 7,245 834 807 - 27 180 213 281 225 608 592 9,324 9,109 126 121 9,450 9,230 -Superannuation 20,864 19,677 2,234 2,069 - 23 411 488 820 745 1,749 1,640 26,078 24,642 332 293 26,410 24,935 Total Employee Benefits 276,828 262,229 30,521 28,849 - 912 6,499 7,567 10,346 9,599 22,371 21,287 346,565 330,443 4,683 4,187 351,248 334,630

Non Salary Labour Costs-Agency Costs 1,580 1,712 32 30 - - 41 37 1,379 1,300 88 40 3,120 3,119 52 63 3,172 3,182 Total Non Salary Labour Costs 1,580 1,712 32 30 - - 41 37 1,379 1,300 88 40 3,120 3,119 52 63 3,172 3,182

Supplies & Consumables-Drug Supplies 17,268 16,248 254 245 - - 3 3 - - 21 8 17,546 16,504 38 15 17,584 16,519 -S100 Drugs 175 223 - - - - - - - - - - 175 223 - - 175 223 -Medical, Surgical Supplies and Prosthesis 18,478 17,637 55 53 - - 75 87 23 35 169 115 18,800 17,927 411 382 19,211 18,309 -Diagnostic Services 15,436 15,461 - - - - 7 2 - 4 238 467 15,681 15,934 12 14 15,693 15,948 -Food Supplies 2,862 2,542 527 523 - 98 228 320 2 2 27 28 3,646 3,513 593 566 4,239 4,079 Total Supplies & Consumables 54,219 52,111 836 821 - 98 313 412 25 41 455 618 55,848 54,101 1,054 977 56,902 55,078

-Domestic Services & Supplies 3,908 4,126 142 136 - 2 89 90 16 6 24 36 4,179 4,396 15 27 4,194 4,423 -Fuel, Light, Power and Water 3,154 2,676 147 103 - - 3 - 3 3 1 1 3,308 2,783 10 8 3,318 2,791 -Insurance costs 7,028 6,202 3 4 - - - - - - - - 7,031 6,206 - - 7,031 6,206 -Motor Vehicle Expenses 262 371 124 141 - - - - 47 34 117 110 550 656 7 24 557 680 -Repairs & Maintenance 2,132 2,250 184 169 - 20 26 42 341 410 93 108 2,776 2,999 99 79 2,875 3,078 -Maintenance Contracts 7,204 6,400 22 16 - 8 10 8 302 153 70 85 7,608 6,670 85 100 7,693 6,770 -Patient Transport 2,401 2,142 48 36 - - - - 23 35 16 12 2,488 2,225 4 5 2,492 2,230 -Bad & Doubtful Debts 68 - - - - - - - - - - - 68 - - - 68 - -Client Brokerage 832 1,015 1,923 1,025 - - - - 4,502 4,157 4,433 1,534 11,690 7,731 - - 11,690 7,731 -Other Administrative Expenses 8,971 8,266 1,960 1,899 - 4 103 78 785 843 752 894 12,571 11,984 907 774 13,478 12,758 -Audit Fees - Auditor-General (refer note 23) 102 100 - - - - - - - - - - 102 100 - - 102 100 Total Other Expenses from Continuing Operations 36,062 33,548 4,553 3,529 - 34 231 218 6,019 5,641 5,506 2,780 52,371 45,750 1,127 1,017 53,498 46,767

368,689 349,600 35,942 33,229 - 1,044 7,084 8,234 17,769 16,581 28,420 24,725 457,904 433,413 6,916 6,244 464,820 439,657 Depreciation & Amortisation (refer note 4) - - - - - - - - - - - - - - 25,200 22,483 25,200 22,483 Finance Costs (refer note 13) - - - - - - - - - - - - - - 491 - 491 - Reversal of impairment on Non Financial Assets (refer note 10) - - - - - - - - - - - - - - (5,286) - (5,286) - Impairment of Financial Assets (refer note 16) - - - - - - - - - - - - - - 724 - 724 -

368,689 349,600 35,942 33,229 - 1,044 7,084 8,234 17,769 16,581 28,420 24,725 457,904 433,413 28,045 28,727 485,949 462,140

Sub-Total Expenses from Continued Operations

Total Expenses

Other Expenses from Continuing Operations


27

Note 3a: Analysis of Expenses by Internal managed a nd Restricted SpecificPurpose Funds For Services Supported by Hospital an dCommunity Initiatives 2014 2013

$'000 $'000Commercial ActivitiesThoracic Medicine 599 498 Echo Cardiology/Angiography 984 834 Sleep Laboratory 905 804 Property Rental - - Cafeteria & Catering Services 1,140 1,075 Car Park 382 302 Other Special Purpose Funds 2,906 2,731 TOTAL 6,916 6,244

Note 4: Depreciation & Amortisation2014 2013$'000 $'000

DepreciationBuildings 13,955 13,112 Plant & Equipment 6,452 6,526 Furniture & Fittings 2,773 1,859 Motor Vehicles 523 986 Total Depreciation 23,703 22,483

AmortisationSoftware 1,497 - Total Amortisation 1,497 -

Total Depreciation and Amortisation 25,200 22,483

Note 5: Cash and Cash EquivalentsFor the purposes of the Cash Flow Statement, cash assets include cash on hand and in banks, andshort-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.

2014 2013$'000 $'000

Cash on Hand 26 26 Cash at Bank 26,855 10,711 TOTAL 26,881 10,737

Represented by:Cash for Health Service Operations 26,877 10,733 Cash for Monies Held in Trust:- Cash at Bank 4 4 TOTAL 26,881 10,737


28

Note 6: Receivables2014 2013$'000 $'000

CURRENTContractual Inter Hospital Debtors 175 273 Trade Debtors 7,247 7,592 Patient Fees 5,586 5,102 Accrued Investment Income 16 19 Less Allowance for Doubtful Debts (69) (191)

12,955 12,795 Statutory Department of Health – Long Service Leave 3,632 3,632 GST Receivable 1,338 1,442

4,970 5,074 TOTAL CURRENT RECEIVABLES 17,925 17,869

NON CURRENTContractual Trade Debtors 1,954 1,954 Statutory Department of Health – Long Service Leave 7,279 5,444 TOTAL NON-CURRENT RECEIVABLES 9,233 7,398

TOTAL RECEIVABLES 27,158 25,267

(a) Movement in Allowance for Doubtful Debts2014 2013$'000 $'000

Balance at beginning of year 191 207 Amounts written off during the year (190) (16)Amounts recovered during the year - - Increase/(decrease) in allowance recognised in profit or loss 68 - Balance at end of year 69 191

(b) Ageing analysis of receivablesPlease refer to note 18d for the ageing analysis of receivables.

(c) Nature and extent of risk arising from receivablesPlease refer to note 18d for the nature and extent of credit risk from receivables.


29

Note 7:Investments and Other Financial AssetsTotal Total2014 2013$'000 $'000

Equities & Managed Investment Schemes Available for Sal e at Fair Value Hybrid Securities 8,006 5,205 Direct Equity-Shares 8,275 7,723 TOTAL 16,281 12,928

Represented by:Health Service Investments 15,704 12,716 Monies Held in Trust:- Patient Monies 4 4 Accommodation Bonds (Refundable Entrance Fees) 573 208 TOTAL 16,281 12,928

(a) Ageing analysis of other financial assetsPlease refer to note 18d for the ageing analysis of other financial assets.

(b) Nature and extent of risk arising from other financial a ssets

Note 8: Inventories2014 2013$'000 $'000

Pharmaceuticals - at cost 812 1,058 Catering Supplies - at cost 78 67 Housekeeping Supplies - at cost 48 49 Medical and Surgical Lines - at cost 1,285 1,129 Administration Stores - at cost 18 19 TOTAL INVENTORIES 2,241 2,322

Note 9: Other Assets2014 2013$'000 $'000

CURRENTPrepayments 662 673 TOTAL 662 673

Please refer to note 18d for the nature and extent of credit risk arising from other financial assets.


30

Note 10: Property, Plant & Equipment2014 2013$'000 $'000

Land- Land at Fair Value 64,644 37,017 Total Land 64,644 37,017

Buildings- Buildings at Fair Value 277,043 257,987 Less Accumulated Depreciation (59,840) (45,888)Total Buildings 217,203 212,099

Plant and Equipment- Plant and Equipment at fair value 57,810 52,959 Less Accumulated Depreciation (30,146) (23,966)Total Plant and Equipment 27,664 28,993

Furniture and Fittings- Furniture and Fittings at fair value 21,117 15,018 Less Accumulated Depreciation (11,458) (8,688)Total Furniture and Fittings 9,659 6,330

Motor Vehicles- Motor Vehicles at fair value 4,600 4,660 Less Accumulated Depreciation (4,451) (4,017)Total Motor Vehicles 149 643

Assets Under Construction- Assets under construction at cost 38,791 35,481 Total Assets Under Construction 38,791 35,481

TOTAL 358,110 320,563

Land Buildings Plant & Furniture & Motor Assets Under Tot alEquipment Fittings Vehicles Construction

$'000 $'000 $'000 $'000 $'000 $'000 $'000Balance at 1 July 2012 38,968 218,936 31,574 7,464 1,829 15,415 314,186 Additions - 11,027 4,335 773 - 20,912 37,047 Disposals (1,951) (5,598) (390) (48) (200) - (8,187)Assets received free of charge - - - - - - - Transfers from Assets Under Construction - 846 - - - (846) - Impairment Losses (recognised)/reversed in Net Result - - - - - - - Revaluation increments/(decrements) - - - - - - - Depreciation (note 4) - (13,112) (6,526) (1,859) (986) - (22,483)Balance at 30 June 2013 37,017 212,099 28,993 6,330 643 35,481 320,563 Additions - 2,335 4,869 1,083 31 41,311 49,629 Disposals (1,697) - (119) - (2) - (1,818)Assets received free of charge 3,662 5,784 - 413 - - 9,859 Transfers from Assets Under Construction - 22,522 373 4,606 - (27,501) - Net Transfers to Intangible Assets (Note 11) - - - - - (10,500) (10,500)Impairment Losses (recognised)/reversed in Net Result 5,286 - - - - - 5,286 Revaluation increments/(decrements) 20,376 (11,582) - - - - 8,794 Depreciation (note 4) - (13,955) (6,452) (2,773) (523) - (23,703)Balance at 30 June 2014 64,644 217,203 27,664 9,659 149 38,791 358,110

Land and buildings carried at valuation


An independent valuation of Peninsula Health's land and buildings was performed by the Valuer-General Victoria to determine the fair value of the land and buildings. 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. The valuation was based on independent assessments. The effective date of the valuation is 30 June 2014.

31

Note 10: Property, Plant & Equipment continued

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

Land at fair valueNon-specialised land 4,900 - 4,900 - Specialised land 59,744 - - 59,744 Total of land at fair value 64,644 - 4,900 59,744

Buildings at fair valueNon-specialised buildings - - - - Specialised buildings 217,203 - - 217,203 Total of building at fair value 217,203 - - 217,203

Plant and equipment at fair value- Plant and equipment 27,664 - - 27,664 Total of plant and equipment at fair value 27,664 - - 27,664

Furniture and Fittings at fair value- Office furniture, computers and leasehold improvements 9,659 - - 9,659 Total furniture and fittings at fair value 9,659 - - 9,659

Motor Vehicles at fair value- Vehicles (ii) 149 - - 149 Total motor vehicles at fair value 149 - - 149

319,319 - 4,900 314,419

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

Non-specialised land and buildings

Specialised land and specialised buildings

Plant and equipment, Furniture & Fittings

Vehicles


Carrying amount as at 30 June 2014

Fair value measurement at end of reporting period using:

(ii) Vehicles are categorised to Level 3 assets because the depreciated replacement cost is used in estimating the fair value. There have been no transfers between levels during the period.

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

Fair value measurement hierarchy for assets as at 3 0 June 2014


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 current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.

There were no changes in valuation techniques throughout the period to 30 June 2014. For all assets measured at fair value, the current use is considered the highest and best use.

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

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

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

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

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

For Peninsula Health, 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.

32


Opening Balance at 1 July 2013 37,017 212,099 28,993 6,330 643

Purchases (sales) 1,051 30,641 5,090 6,102 8

Transfers in (out) of Level 3 (4,900) - - - -

Gains or losses recognised in net result

- Depreciation - (13,955) (6,452) (2,773) (523) - Impairment loss 5,286 - - - -

Subtotal 38,454 228,785 27,631 9,659 128

Items recognised in other comprehensive income

- Revaluation 20,376 (11,582) - - -

Subtotal 20,376 (11,582) - - -

58,830 217,203 27,631 9,659 128

Unrealised gains/(losses) on non-financial assets 914 - 33 - 21

Closing Balance at 30 June 2014 59,744 217,203 27,664 9,659 149

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


Motor VehiclesLand Buildings

Plant and Equipment

Furniture & Fittings

Reconciliation of Level 3 fair value at 30 June 201 4(i)


33



Specialised land

Specialised land Market approach

Community Service Obligation (CSO) adjustment 20% (i)

A significant increase or decrease in the CSO adjustment would result in a significantly lower (higher) fair value

Specialised buildings

Hospital care facilities Depreciated replacement cost

Direct cost per square metre

$1,300 - $2,500/m2 ($1,900)

A significant increase or decrease in direct cost per square meter adjustment would result in a significantly higher or lower fair value

Residential building structures Depreciated replacement cost


$2,000 - $3,500/m2 ($2,750)


Community Centre (Hastings) Depreciated replacement cost

Direct cost per square metre $6,000/m2


Other sheds and halls Depreciated replacement cost


$1,000 - $1,200/m2 ($1,100)


All Useful life of specialised buildings

1 - 60 years (30 years)

A significant increase or decrease in the estimated useful life of the asset would result in a significantly higher or lower valuation.

Plant and equipment at fair value

Plant and equipment Depreciated replacement cost Cost per unit

$9,000 - $10,000 ($9,500)

A significant increase or decrease in cost per unit would result in a significantly higher or lower fair value

Useful life of PPE 5-10 years (7 years)


Vehicles

Motor vehicles Depreciated replacement cost Cost per unit

$9000-$10000 per unit($9500 per unit)

A significant increase or decrease in cost per unit would result in a significantly higher or lower fair value

Useful life of vehicles 3-5 years (4 years)


Medical equipment at fair value

Medical equipment Depreciated replacement cost Cost per unit

$6,000 - $7,000 ($6,500)

Increase (decrease) in gross replacement cost would result in a significantly higher (lower) fair value

Useful life of medical equipment 3-10 years (6 years)

Increase (decrease) in useful life would result in a significantly higher (lower) fair value

Furniture and fittings at fair value

Furniture and fittings Depreciated replacement cost Cost per unit

$6,000 - $7,000 ($6,500)

Increase (decrease) in gross replacement cost would result in a significantly higher (lower) fair value

Useful life of medical equipment 3-10 years (6 years)

Increase (decrease) in useful life would result in a significantly higher (lower) fair value

(i) A CSO adjustment of 20% was applied to reduce the market approach value for the Health Service’s specialised land.


Valuation technique

Significant unobservable inputs (i)

Range (weighted average) (i)

Sensitivity of fair value measurement to changes in

significant unobservable inputs

34

Note 11: Intangible Assets 2014 2013$'000 $'000

Software 10,500 - Less Accumulated Amortisation (1,497) - Total Intangible Assets 9,003 -

Software Total$'000 $'000

Balance at 30 June 2013 - - Additions - - Net Transfers from Assets Under Construction (Note 10) 10,500 - Disposals - - Amortisation expense (Note 4) (1,497) - Balance at 30 June 2014 9,003 -

Note 12: Payables 2014 2013$'000 $'000

CURRENTContractualTrade Creditors (i) 5,257 4,226 Salary Packaging 3,238 2,907 Accrued Expenses 13,021 6,381

21,516 13,514 StatutoryDepartment of Health (ii) 2,363 3,008

TOTAL CURRENT 23,879 16,522

(a) Maturity analysis of payablesPlease refer to Note 18e for the ageing analysis of payables.(b) Nature and extent of risk arising from payablesPlease refer to note 18g for the nature and extent of risks arising from contractual payables.

Note 13: Borrowings 2014 2013$'000 $'000

CURRENTTCV borrowings 948 1,015

NON CURRENTTCV borrowings 8,814 8,223

TOTAL BORROWINGS 9,762 9,238

The terms and conditions of the interest bearing borrowings include a 15 year repayment periodat a fixed interest rate of 4.795%.

2014 2013$'000 $'000

Interest on long term borrowings (recognised as a finance cost) 491 - Interest on long term borrowings (capitalised during construction) - 127

(a) Maturity analysis of borrowingsPlease refer to note 18e for the ageing analysis of borrowings.(b) Nature and extent of risk arising from borrowin gsPlease refer to note 18g for the nature and extent of risks arising from borrowings.(c) Defaults and breaches


Finance costs of the Health Service incurred during the year are accounted for as follows:

Reconciliation of the carrying amounts of intangible assets at the beginning and end of the previous and current financial year:

During the current and prior year, there were no defaults and breaches of any of the borrowings.

(i) The average credit period is 30 days. No interest is charged on the other payables for the first 30 days from the date of the invoice. Thereafter, $ nil interest was charged on the outstanding balance in 2013/14 (2012/13: $nil).

(ii) Terms and conditions of amounts payable to the Department of Health vary according to the particular agreement with the Department.

35

Note 14: Provisions

Employee Benefits 2014 2013$'000 $'000

CURRENTEmployee Benefits (i) (Note 14(a))Annual Leave (Note 14(a))- Unconditional and expected to be settled within 12 months (ii) 21,906 20,556 - Unconditional and expected to be settled after 12 months (ii) 6,032 5,661 Long Service Leave (Note 14(a))- Unconditional and expected to be settled within 12 months (ii) 4,582 4,154 - Unconditional and expected to be settled after 12 months (ii) 30,834 28,415 Accrued Days Off (Note 14(a))- Unconditional and expected to be settled within 12 months (ii) 984 959 - Unconditional and expected to be settled after 12 months (ii) - - Accrued Wages and Salaries 9,470 8,972

73,808 68,717 Provisions related to Employee Benefit On-Costs- Unconditional and expected to be settled within 12 months (ii) 2,794 2,613 - Unconditional and expected to be settled after 12 months (ii) 3,988 3,229

6,782 5,842 Total Current Provisions 80,590 74,559

NON-CURRENTEmployee Benefits (i) (Note 14(a)) 11,347 10,667 Provisions related to Employee Benefit On-Costs (Note 14(a) and Note 14(b)) 1,171 1,101 Total Non-Current Provisions 12,518 11,768

Total Provisions 93,108 86,327

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costsAnnual Leave Entitlements 30,727 28,834 Unconditional Long Service Leave Entitlement 39,305 35,690 Accrued Days Off 1,088 1,063 Accrued Wages and Salaries 9,470 8,972 Non-Current Employee Benefits and related on-costsConditional Long Service Leave Entitlements 12,518 11,768 Total Employee Benefits and Related On-Costs 93,108 86,327

Notes:

(b) Movement in Long Service Leave:

Balance at start of year 47,458 42,839 Provision made during the year:-Revaluations (33) 127 -Expense recognising employee service 9,483 9,103 Settlement made during the year (5,085) (4,611)Balance at end of year 51,823 47,458


(i) Employee benefits consist of annual leave and long service leave accrued by employees. On-costs such as superannuation and worker's compensation insurance are not employee benefits and are reflected as a separate provision.

(ii) The amounts disclosed are at present values

36

Note 15: Other Liabilities2014 2013$'000 $'000

CURRENT*Trust Funds - Patient Monies held in Trust 577 212

577 212 * Total Monies Held in TrustRepresented by the following assets:- Cash Assets Held in Trust (refer to Note 5) 4 4 - Other Financial Assets Held at Trust (refer to Note 7) 573 208 TOTAL 577 212

Note 16: Equity 2014 2013$'000 $'000

(a) SurplusesProperty, Plant & Equipment Revaluation Surplus 1

Balance at the beginning of the reporting period 59,273 59,273 Revaluation increment/(decrement) 8,794 - Impairment losses - - Balance at the end of the reporting period 68,067 59,273

* Represented by:- Buildings 47,691 59,273 - Land 20,376 -

68,067 59,273

Financial Asset Available-for-Sale Revaluation Surp lus 2

Balance at the beginning of the reporting period 1,485 588 Cumulative (gain)/loss transferred to Operating Statement on sale of financial assets (220) (320)Cumulative (gain)/loss transferred to Operating Statement on impairment of financial assets 724 - Valuation gain/(loss) recognised direct to equity 959 1,217 Balance at the end of the reporting period 2,948 1,485

Total Surpluses 71,015 60,758

(b) Contributed CapitalBalance at the beginning of the reporting period 191,923 191,923 Balance at the end of the reporting period 191,923 191,923

(c) Accumulated Surpluses/(Deficits)Balance at the beginning of the reporting period 7,510 9,368 Net Result for the Year 42,562 (1,858)Balance at the end of the reporting period 50,072 7,510

Total Equity at the end of the reporting period 313, 010 260,191

1. The property, plant & equipment asset revaluation surplus arises on the revaluation of property, plant & equipment.

2. The financial assets available-for-sale revaluation surplus arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold, that portion of the reserve which relates to the financial asset, and is effectively realised, is recognised in the net result. Where a revalued financial asset is impaired that portion of the reserve which relates to that financial asset is recognised in net result.


37


Note 17: Reconciliation of Net Result for the Year to Net Cas h Inflow/(Outflow)from Operating Activities

2014 2013$'000 $'000

Net Result for the Year 42,562 (1,858)

Non-cash movementsDepreciation & Amortisation 25,200 22,483 Non-Cash Department of Health Capital Grants (1,272) (3,088)Non-Cash Assets Available for Sale (220) (320)Non-Cash Impairment of Financial Assets 724 - Non-Cash Revaluation/Impairment of Non Financial Assets (5,286) - Assets received free of charge (9,859) - Movements included in investing and financing activitiesNet (Gain)/Loss from Sale of Plant and Equipment (968) (62)(Gain)/Loss from Discontinued Operation (1,954) 673 Movements in Assets & Liabilities- Increase/(Decrease) in Payables 1,476 1,119 - Increase/(Decrease) in Employee Benefits 6,781 4,334 - (Increase)/Decrease in Inventories 81 4 - (Increase)/Decrease in Receivables (1,891) (353)- (Increase)/Decrease in Prepayments 11 74 - Increase/(Decrease) in Other Liabilities 365 (744)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 55,750 22,262


38

Note 18: Financial Instruments

(a) Financial Risk Management Objectives & Policies

(b) Risk management policies

(c) Categorisation of financial instrumentsCarrying Carrying

Details of each category in accordance with AASB139 Amount Amount 2014 2013

Note Category $'000 $'000Financial AssetsCash and cash equivalents 5 26,881 10,737 Receivables 6 14,909 14,749 Other Financial Assets 7 16,281 12,928 Total Financial Assets (i) 58,071 38,414 Financial LiabilitiesPayables 12 21,516 13,514 Borrowings 13 9,762 9,238 Accommodation Bonds 15 573 208 Other Liabilities 15 4 4 Total Financial Liabilities (ii) 31,855 22,964

(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)

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

gain/(loss)

Total interest income /

(expense)Fee income /

(expense)Impairment

loss Total$'000 $'000 $'000 $'000 $'000

2014Financial Assets

Cash and Cash Equivalents (i) - 1,098 - - 1,098

Loans and Receivables (i) - - - - -

Available for Sale (i) 959 - 728 (724) 963 Total Financial Assets 959 1,098 728 (724) 2,061 Financial LiabilitiesAt Amortised Cost (ii) - (491) - - (491)Total Financial Liabilities - (491) - - (491)

2013Financial Assets

Cash and Cash Equivalents (i) - 644 - - 644

Loans and Receivables (i) - - - - - Available for Sale (i) 1,217 - 707 - 1,924 Total Financial Assets 1,217 644 707 - 2,568 Financial LiabilitiesAt Amortised Cost (ii) - - - - - Total Financial Liabilities - - - - -


This is supported by a risk register which is regularly updated in conjunction with our internal auditors.

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 Peninsula Health's financial risks within government policy parameters.

Available for sale financial assets

Peninsula Health's risk management framework is based on the Australian Standard and has an overarching policy with 10 policies relating to specific areas such as clinical governance, financial risk, IT risk and building and infrastructure risk.

Peninsula Health's principal financial instruments comprise of cash assets, term deposits, receivables (excluding statutory receivables, investment in equities, payables (excluding statutory payables), accommodation bonds and borrowings.

Peninsula Health's main financial risks include credit risk, liquidity risk, interest rate risk and equity price risk. Peninsula Health manages these financial risks in accordance with its financial risk management policy.Peninsula Health 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 financial risk management committee of the Health Service.

Risk management is seen as a core component of service delivery and high or extreme risks are managed at an appropriate level of seniority. A consistent risk assessment and management tool is used across all risk areas.

Financial liabilities measured at amortised cost

Loans and ReceivablesLoans and Receivables

(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue, plus or minus foreign exchange gains or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result.(ii) For financial liabilities measured at amortised cost, the net gain or loss is calculated by taking the interest expense, plus or minus foreign exchange gains or losses arising from the revaluation of financial liabilities measured at amortised cost.

Financial liabilities measured at amortised cost

Financial liabilities measured at amortised costFinancial liabilities measured at amortised cost

39

Note 18: Financial Instruments Continued

(d) Credit Risk

Ageing analysis of Financial Asset as at 30 June

Less than 1 Month

1-3 Months 3 months - 1 Year

1-5 Years

2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Financial Assets

Cash and Cash Equivalents 26,881 26,881 - - - - - Receivables

- Trade Debtors* 14,909 11,708 1,609 525 1,136 - (69)

Other Financial Assets

- Managed Investments 16,281 16,281 - - - - -

Total Financial Assets (i) 58,071 54,870 1,609 525 1,136 - (69)

2013

Financial Assets

Cash and Cash Equivalents 10,737 10,737 - - - - -

Receivables

- Trade Debtors 14,749 12,106 982 274 1,149 429 (191)

Other Financial Assets

- Managed Investments 12,928 12,928 - - - - -

Total Financial Assets 38,414 35,771 982 274 1,149 429 (191)

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

2014 $'000 $'000 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 26,881 - - - 26,881 Loans and Receivables - - 1,236 13,673 14,909 Available for sale - Shares in Other Entities - - - 16,281 16,281 Total Financial Assets (i) 26,881 - 1,236 29,954 58,071

2013Financial AssetsCash and Cash Equivalents 10,737 - - - 10,737 Loans and Receivables - - 273 14,476 14,749 Available for sale - Shares in Other Entities - - - 12,928 12,928 Total Financial Assets (i) 10,737 - 273 27,404 38,414

Financial institutions(AAA credit

rating)

Government agencies

(AAA credit rating)

Government agencies(min BBB

credit rating)

Other (min BBB

credit rating)

Total

* For some trade receivables, Peninsula Health has obtained security in the form of guarantees which can be called upon if the counterparty is in default under the agreement. 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. There are no material financial assets which are individually determined to be 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 Peninsula Health 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, Peninsula Health’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 Peninsula Health 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 Peninsula Health’s maximum exposure to credit risk without taking account of the value of any collateral obtained.

Impaired Financial Assets

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

Carrying Amount

Not Past Due and Not Impaired

Past Due But Not Impaired

40

Note 18: Financial Instruments continued(e) Liquidity Risk

Carrying Amount Nominal Amount

Less than 1 Month

1-3 Months 3 months - 1 Year

1-13 Years

2014 $'000 $'000 $'000 $'000 $'000 $'000Financial LiabilitiesAt amortised costPayables 21,516 21,516 18,278 1,619 1,619 - Borrowings 9,762 13,274 - 237 711 12,326 Other Financial Liabilities - Accommodation Bonds 573 573 573 - - - - Other 4 4 4 - - -

Total Financial Liabilities 31,855 35,367 18,855 1,856 2,330 12,326

2013Financial LiabilitiesAt amortised costPayables 13,514 13,514 10,607 1,454 1,454 -

Borrowings 9,238 9,238 - 254 761 8,223 Other Financial Liabilities - Accommodation Bonds 208 208 208 - - -

- Other 4 4 4 - - -

Total Financial Liabilities 22,964 22,964 10,819 1,707 2,215 8,223

(f) Market Risk

Currency Risk

Interest Rate Risk

Interest Rate Exposure of Financial Assets and Liabilities as at 30 June

CarryingAmount Fixed Variable Non-interest

interest rate interest rate bearing2014 $'000 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents 26,881 - 26,855 26 Receivables(i) - Trade Debtors 14,909 - - 14,909 Other Financial Assets - Managed Investments 16,281 8,006 - 8,275

58,071 8,006 26,855 23,210 Financial LiabilitiesAt amortised costPayables(i) 21,516 - - 21,516 Borrowings 9,762 9,762 - - Other Financial Liabilities - Accommodation Bonds 573 - - 573 - Other 4 - - 4

31,855 9,762 - 22,093 2013Financial AssetsCash and Cash Equivalents 10,737 - 10,711 26 Receivables(i) - Trade Debtors 14,749 - - 14,749 Other Financial Assets - Managed Investments 12,928 5,205 - 7,723

38,414 5,205 10,711 22,498 Financial LiabilitiesAt amortised costPayables(i) 13,514 - - 13,514 Borrowings 9,238 9,238 - - Other Financial Liabilities - Accommodation Bonds 208 - - 208 - Other 4 - - 4

22,964 9,238 - 13,726

Exposure to interest rate risk might arise primarily through Peninsula Health's interest bearing financial assets. Minimisation of risk has been achieved by using fixed rate for financial liabilities and non-interest bearing financial instruments.

(i) The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable).

Interest Rate Exposureeffective interest

rate (%)

2.79%

-


The following table discloses the contractual maturity analysis for Peninsula 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 JuneMaturity Dates

Weighted avegare

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

Liquidity risk is the risk that the Health Service would be unable to meet its financial obligations as and when they fall due. Peninsula Health operates under the Government's fair payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution. The Health Service’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. Peninsula Health manages its liquidity risk through regular cash forecasts and ensuring sufficient available cash is held to meet its obligations.

Peninsula Health's exposures to market risk are primarily through interest rate risk, and other price risks such as variability in equity markets, with only an insignificant exposure to foreign currency price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below.

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

-

4.67%-

-

-

2.66%

--

-

4.79%-

-

41

Note 18: Financial Instruments continued

(g) Market Risk (continued)Sensitivity Disclosure Analysis

- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 2.79% (2013: 2.66%); - A parallel shift of +1% and -1% in inflation rate from year-end rates of 4.44% (2013: 4.50%).

CarryingAmount

Profit Equity Profit Equity Profit Equity Profit Equity2014 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000Financial AssetsCash and Cash Equivalents(i) 26,881 (269) (269) 269 269 - - - - Receivables(ii)

- Trade Debtors 14,909 - - - - - - - - Other Financial Assets - Managed Investments 16,281 (80) (80) 80 80 (414) (414) 414 414 Financial LiabilitiesAt amortised costPayables 21,516 - - - - - - - - Borrowings (fixed rate) 9,762 - - - - - - - - Other Financial Liabilities - Accommodation Bonds 573 - - - - - - - - - Other 4 - - - - - - - -

(349) (349) 349 349 (414) (414) 414 414 2013Financial AssetsCash and Cash Equivalents(i) 10,737 (107) (107) 107 107 - - - -

Receivables(ii)

- Trade Debtors 14,749 - - - - - - - - Other Financial Assets - Managed Investments 12,928 (52) (52) 52 52 (386) (386) 386 386 Financial LiabilitiesAt amortised costPayables 13,514 - - - - - - - - Borrowings (fixed rate) 9,238 - - - - - - - - Other Financial Liabilities - Accommodation Bonds 208 - - - - - - - - - Other 4 - - - - - - - -

(159) (159) 159 159 (386) (386) 386 386

(ii) The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable).

Interest Rate Risk Other Price Risk -1% +1%

(i) eg. Sensitivity of cash and cash equivalents to a +1% movement in interest rates: [$26,881k*0.054]-[$26,881k*0.044] = $269k. Similar for a -1% movement in interest rate, impact = $(269k).

-5% +5%


Taking into account past performance, future expectations, economic forecasts, the views of external consultants, and management's knowledge and experience of the financial markets, the 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 Peninsula Health at year end as presented to key management personnel, if changes in the relevant risk occur.

42

Note 18: Financial Instruments continued

(h) Fair Value

Comparison between carrying amount and fair value Ca rrying Fair Value Carrying Fair Value

Amount Amount Amount Amount

2014 2014 2013 2013

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

Financial Assets

Cash and cash equivalents 26,881 26,881 10,737 10,737

Receivables 14,909 14,909 14,749 14,749

Other Financial Assets 16,281 16,281 12,928 12,928

Total Financial Assets 58,071 58,071 38,414 38,414

Financial Liabilities

At amortised cost

Payables 21,516 21,516 13,514 13,514

Borrowings 9,762 9,762 9,238 9,238

Accommodation Bonds 573 573 208 208 Other Liabilities 4 4 4 4

Total Financial Liabilities 31,855 31,855 22,964 22,964

Carrying Amount as at 30 June

Level 1 Level 2 Level 3

2014 $'000 $'000 $'000 $'000

Financial assets at fair value through net result


- Equities and managed funds 16,281 16,281 - -

Total Financial Assets 16,281 16,281 - -

2013

Financial assets at fair value through net result


- Equities and managed funds 12,928 12,928 - -

Total Financial Assets 12,928 12,928 - -


Fair value measurement at end of year using:

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 assets and liabilities 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.

There have been no transfers between levels during the period.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The financial assets include holdings in listed shares. The listed share assets are valued at fair value with reference to a quoted (unadjusted) market price from an active market. Peninsula Health categorises these instruments as Level 1.

Peninsula Health considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.Accordingly, the following table presents that the fair values of most of the contractual financial assets and liabilities, are the same as the carrying amounts.


43

Note 19: Commitments for Expenditure & Contingencies

2014 2013$'000 $'000

Capital Expenditure CommitmentsPayable:- Land and Buildings 35,010 88,534 - Plant & Equipment 8,754 8,341 Total Capital Commitments 43,764 96,875

Not later than one year 38,764 71,302 Later than one year and not later than 5 years 5,000 25,573 Total commitments inclusive of GST 43,764 96,875

Less GST recoverable from the Australian Tax Office 3,979 8,807 Total commitments exclusive of GST 39,785 88,068

Lease CommitmentsCommitments in relation to leases contracted for at the reporting date: - - - Operating leases 357 727 Total Lease Commitments 357 727

Operating LeasesNon-CancellableNot later than one year 216 403 Later than one year and not later than 5 years 141 324 Later than 5 years - - Sub-total 357 727 Total 357 727

Contingent Assets and Contingent Liabilities

As at 30 June 2014, Peninsula Health does not have any contingent assets or liabilities.


44

Note 20: Segment ReportingResidential Aged Residential Aged Pers. Alarm Pers. Alarm Acute Acute Mental Mental Aged Aged Primary Primary Other Other Total Total

Care Services Care Services Call systems Call systems Care Care Health Health Care Care Health Health2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

REVENUEExternal Segment Revenue 5,287 4,661 12,233 11,351 366,995 349,167 34,330 31,870 7,667 7,433 27,706 27,387 - - 454,218 431,869 Unallocated Revenue - - - - - - - - - - - - 62,389 28,694 62,389 28,694 Total Revenue 5,287 4,661 12,233 11,351 366,995 349,167 34,330 31,870 7,667 7,433 27,706 27,387 62,389 28,694 516,607 460,563

EXPENSESExternal Segment Expenses 7,084 9,278 6,768 6,843 368,689 349,600 35,942 33,229 11,001 9,738 28,420 24,725 - - 457,904 433,413 Unallocated Expense - - - - - - - - - - - - 32,116 28,727 32,116 28,727 Total Expenses 7,084 9,278 6,768 6,843 368,689 349,600 35,942 33,229 11,001 9,738 28,420 24,725 32,116 28,727 490,020 462,140

Net Result from ordinary activities (1,797) (4,617) 5,465 4,508 (1,694) (433) (1,612) (1,359) (3,334) (2,305) (714) 2,662 30,273 (33) 26,587 (1,577)Interest and dividend Income - - - - - - - - - - - - 1,825 1,351 1,825 1,351 Finance costs - - - - - - - - - - - - (491) - (491) - Assets Received Free of Charge - - - - - - - - - - - - 9,859 - 9,859 - Reversal of impairment on Non Financial Assets - - - - - - - - - - - - 5,286 - 5,286 - Revaluation of Non-Financial Assets - - - - - - - - - - - - - - - - Available-for-Sale Revaluation Reserve Surplus recognised - - - - - - - - - - - - 220 320 220 320 Impairment of Financial Assets - - - - - - - - - - - - (724) - (724) - Net Result for Year (1,797) (4,617) 5,465 4,508 (1,694) (433) (1,612) (1,359) (3,334) (2,305) (714) 2,662 46,248 1,638 42,562 94

OTHER INFORMATIONSegment Assets 1,466 1,069 5,073 4,265 414,917 353,235 7,508 4,673 1,412 909 9,960 8,339 - - 440,336 372,490 Total Assets 1,466 1,069 5,073 4,265 414,917 353,235 7,508 4,673 1,412 909 9,960 8,339 - - 440,336 372,490

Segment Liabilities 1,986 1,253 3,260 2,535 103,505 93,566 9,148 7,117 2,043 1,712 7,384 6,116 - - 127,326 112,299 Total Liabilities 1,986 1,253 3,260 2,535 103,505 93,566 9,148 7,117 2,043 1,712 7,384 6,116 - - 127,326 112,299

Acquisition of property, plant and equipment 50 54 1,442 1,549 47,474 34,962 471 316 2 1 190 165 - - 49,629 37,047 Assets Received Free of Charge - - - - - - - - - - - - 9,859 - 9,859 - Reversal of impairment on Non Financial Assets - - - - - - - - - - - - 5,286 - 5,286 - Revaluation of Non-Financial Assets - - - - - - - - - - - - 8,794 - 8,794 - Depreciation expense 81 120 1,564 1,763 21,285 19,908 249 102 25 39 499 551 - - 23,703 22,483


45


Note 20: Segment Reporting continued

Business Segments

Residential Aged Care Services (RACS)The Commonwealth Government regulates and partly funds the provision of residential care for older people who can no longer live independently in their own home. There are two levels of care: 'low level residential care' and 'high level residential care'.

Personal Alarm Call Systems (MEPACS)MEPACS provides personal alarm services to private clients as well as government funded (PAV) clients. Personal Alert Victoria (PAV) is a 24 hour personal monitoring service that responds to calls for assistance and is funded by the Victorian Government through the Department of Health. This segment reporting note excludes some corporate costs and significant capital expenditure items.

Acute CarePeninsula Health provides inpatient and outpatient care within the areas of general and specialty medical and surgical services, maternity, paediatric and emergency services.

Mental HealthPeninsula Mental Health Service provides a range of mental health services including aged and adult acute inpatient services, community liaison early intervention acute and recovery services (CLEARS), consultation liaison inpatient psychiatric services (CLIPS) and community care units (residential care).

Aged CarePeninsula Health provides a range of inpatient, interim care and domiciliary aged care and rehabilitation services as well as palliative care and Hospital in the Home services.

Primary HealthPeninsula Health provides support for the community in the areas of audiology, counselling, nutrition, podiatry, physiotherapy, cardiac rehabilitation, diabetes education, health education and health promotion.

Geographical SegmentPeninsula Health operates predominantly in Melbourne (South Eastern Suburbs and Mornington Peninsula), Victoria. Peninsula Health's revenue, net surplus from ordinary activities and segment assets relate to operations in that area.

46

Note 21: Responsible Persons Disclosures

(a) Responsible Persons

Responsible MinisterThe Honourable David Davis MLC, Minister for Health and Ageing July 1, 2013 June 30, 2014The Honourable Mary Wooldridge MLA, Minister for Mental Health, Community Services, Disability Services and Reform July 1, 2013 June 30, 2014Governing Board July 1, 2013 June 30, 2014Ms Nancy Hogan July 1, 2013 June 30, 2014Mr Michael Tiernan July 1, 2013 June 30, 2014Mr Geoffrey Rankin July 1, 2013 June 30, 2014Mrs Marcia Coleman July 1, 2013 June 30, 2014Professor Henry Ekert AM July 1, 2013 June 30, 2014Mr Jonathan Tribe July 1, 2013 June 30, 2014Ms Erika Wilke July 1, 2013 June 30, 2014Mr Michael Carroll July 1, 2013 June 30, 2014Dr Laurie Warfe July 1, 2013 June 30, 2014

Accountable Officer*Dr Sherene Devanesen July 1, 2013 January 27, 2014David Anderson January 28, 2014 June 30, 2014

(b) Remuneration of Responsible Persons & Accountab le Officer

2014 2013No. No.

Income Band$0 - $9,999 1 1$20,000 - $29,999 7 7$40,000 - $49,999 1 1$120,000-$129,999 1 -$380,000-$389,999 - 1$440,000-$449,000 1 -

Total Numbers 11 10

$'000 $'000

Total remuneration for the reporting period for Responsible Persons included above amounted to: 768 574

(c) Other Transactions of Responsible Persons and t heir Related Parties


Period


Amounts relating to the Responsible Minister's is reported in the financial statements of the Department of Premier and Cabinet.

There were no other transactions between the Health Service and the Responsible Persons or their Related parties.

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.

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

47

Note 22: Executive Officer Disclosures

Executive Officer Remuneration

The number of executive officers, other than Ministers and Accountable Officers, and their total remunerationduring the reporting period are shown in the first and third column in the table below in their relevant income bands.The base remuneration of executive officers is shown in the second and fourth column. Base remuneration isexclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.The total annualised employee equivalent provides a measure of full time equivalent executive officers over the reporting period.

TOTAL BASE TOTAL BASEIncome Band No. No. No. No.

$10,000 - $19,999 1 1 - -

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

$120,000 - $129,999 1 - - -

$130,000 - $139,999 - 1 - -

$150,000 - $159,999 1 - - -

$180,000- $189,999 - 1 - -

$200,000 - $209,999 - 1 - 1

$210,000 - $219,999 - - 1 -

$220,000 - $229,999 1 - 1 1

$230,000 - $239,999 1 2 - -

$240,000 - $249,999 - - - 3

$250,000 - $259,999 - - 2 -

$260,000 - $269,999 - - 1 -

$270,000 - $279,999 2 - - 1

$280,000 - $289,999 - - 1 -

Total number of executives 7 7 6 6

Total annualised employee equivalent (AEE)* 5.5 5.5 6 6

$'000 $'000 $'000 $'000Total remuneration for the reporting period for Executive Officers included above amounted to: 1,302 1,134 1,506 1,442

* Annualised employee equivalent is based on working 40 ordinary hours per week over the reporting period.

Note 23: Remuneration of Auditors2014 2013$'000 $'000

Audit fees paid or payable to the Victorian Auditor-General'sOffice for audit of Peninsula Health's financial statements:

- Paid and Payable as at 30 June 102 100

Total Paid and Payable 102 100

Note 24: Ex Gratia Payments2014 2013

Peninsula Health has made the following ex gratia payments:- Ex gratia payments 5 21 Total Paid 5 21

Note 25: Subsequent Events

There have been no events subsequent to reporting date that require additional disclosure.


2014 Remuneration 2013 Remuneration

48

Note 26: Discontinued Operation

In August 2012, the Health Service announced its intention to advertise for a partner to help it to develop and operate the Rosebud Residential Aged Care (RRAC) facility or possibly buy the land and buildings andoperate it independently of Peninsula Health. RRAC was sold on 2 April 2013 with the effect of this disposalreported in these financial statements as a discontinued operation.

Financial information relating to the discontinued operation for the period to the date of disposal is set out below.The financial performance and cashflow information presented are for the ten months ended 30 April 2013 and the year ended 30 June 2014.

(a) Net result from discontinued operations

2014 2013$'000 $'000

Revenue from ordinary activities - 3,260 Expenses from ordinary activities - (4,539)Net Result - (1,279)

Gain/(Loss) from Discontinued Operation - (673)Net Result from Discontinued Operation - (1,952)

Net Cash Inflow/(Outflow) from Operating Activities - (1,279)Net Cash Inflow/(Outflow) from Investing Activities (2013 includes an inflow of $1,856,000 from the sale of RRAC) 1,954 1,856 Total Cash Inflow/(Outflow) from Discontinued Operation 1,954 577

(b) Details of the sale of RRAC

Consideration received or receivable:- Cash (net of direct selling costs) - 1,856 - Amount due earlier of 02/04/2014 or building permit - 1,954 - Amount due earlier of 02/04/2017 or occupancy permit - 1,953 Total disposal consideration - 5,763

Carrying amounts of assets and liabilities as at the date of sale were:- Property, plant and equipment - 7,784 Total Assets - 7,784

- Trust Funds - Patient Monies held in Trust - 1,348 Total Liabilities - 1,348

Net Assets - 6,436

Gain/(Loss) from Discontinued Operation - 673-


49

Documents

Annual Report 2014 - Parliament of Victoria€¦ · Peninsula Health’s operational and financial performance for the year ended 30 June 2014. It has been another year of solid achievement