Annual Report 2013 - DPV Health · James Hooper 11 10 Anne Jungwirth 11 10 Aysegul Koksuz 5 4...

Annual Report 20132

Contents2 About Dianella

3 From the Chief Executive Officer

4 Directors’ Report

8 Auditor’s Independence Declaration

9 Statement of Profit or Loss and Other Comprehensive Income

10 Statement of Financial Position

11 Statement of Changes in Equity

12 Statement of Cash Flows

13 Notes to the Financial Statements

24 Directors’ Declaration

25 Independent Auditor’s Report

About DianellaDianella offers a range of services to the community including:

Aged Care Services • Planned Activity Groups • Social Support Groups • Volunteer Program

Broad Insight Group (BIG) • Early Childhood Intervention Service

Child, Youth and Family Services • Antenatal and Postnatal Support • Audiology • Continence Support • Early Childhood Services • Occupational Therapy • Parent Advice for Hearing Impaired

Preschool Children • School Focused Youth Service • Speech Pathology • Occupational Therapy Paediatric

Counselling Services • General Counselling and Support • Child and Adolescent Psychology • Vietnamese Social Work • CALD Disability Service • Youth Counselling • Emergency Relief

Dental Service • School Dental • General Dental

Early Intervention in Chronic Care • Health Coaching • Cardiac Rehabilitation • Diabetes Education • Nutrition and Dietetics • Occupational Therapy • Physiotherapy • Podiatry

Medical Services • Community Asthma Program • General Practice • Refugee Health Service • Needle and Syringe Program • Paediatrics

Mental Health Rehabilitation • Day Programs • Day to Day Living • Home Based Outreach Support • Moderate Outreach • Intensive Home Based Outreach Support

Self Support Groups

Annual Report 2013 3

From the Chief Executive OfficerSince starting in the role of Chief Executive, I have become very aware of the excellent work done by Dianella staff and volunteers. I acknowledge their contribution during the year and congratulate everyone on a job well done.Some of the activity highlights for this year include:

• Development of the 2013-2018 Strategic Plan

• Redesign of the GP Super Clinic Project which will ensure the long term delivery of Primary Care Services for our Community. Building of the new Super Clinic is anticipated to commence by the end of 2013.

• Dianella Community Health’s commitment and involvement in Healthy Together Hume and Building Respectful Relationships, with an emphasis on preventing violence against women.

• The Wulumperi Project and Wulumperi Day which was a community health day for the Aboriginal & Torres Strait Islander community.

• The opening of our four chair dental service at Craigieburn.

One of our greatest challenges this year was to balance demand for services in our growing region in a tight fiscal environment. Our Treasurer, Finance Committee and Management Team

have done an outstanding job of implementing a new financial reporting framework to ensure the ongoing sustainability and viability of our organisation

The work we are doing in all areas of the Health Service puts us in good stead for a bright future to address the continuing growth in demand for services in the City of Hume. We are proud of what we all have achieved throughout the last year, especially with the continued challenges that are ever present in the primary health care sector.

Finally, in conjunction with the Board Chair, I would like to thank the Board, our Executive Management Team, the Dianella Staff and Volunteers for their remarkable contribution to the year’s events and their support in my first year as Chief Executive. I would also like to thank all our patients, clients and consumers for trusting us with their healthcare.

Veronica Jamison CEO

Our Vision

At Dianella we share a vision of health, wellbeing, equity and quality of life for all

Our Values • Professionalism

• Respect

• Integrity

• Compassion

• Excellence

Our Key Strategic initiatives

Sustainable services • Strengthening financial controls

• Increasing private and public service provision.

• Best use of human resources

Appropriate Resources • Implement Capital Works Plan

• Sustainable and appropriate workforce

• Sustatinable service provision

Best available Services • Integrated Primary Healthcare

Teams

• Identifying key ‘at risk’ population groups

• Responsive, innovative and effective services.

Annual Report 20134

Directors’ Report

Your Directors present this report on the entity for the financial year ended 30 June 2013.

DirectorsThe names of each person who has been a Director during the year and to the date of this report are:

• Julie Busch

• Deva Corea

• Sam Denny

• Margaret Douglas - appointed 7 May, 2013

• Milena Giusti-Mezzatesta - deceased 14 January, 2013

• John Hodgson

• James Hooper

• Anne Jungwirth

• Aysegul Koksuz - appointed 27 November, 2012

• Evelyn Nicholson - appointed 27 November, 2012

• Tony Nippard - resigned 16 July, 2012

• Don Peckham - term of appointment ceased 27 November, 2012

• Malcolm Vue - appointed 27 November, 2012

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal ActivitiesThe principal activity of the entity during the financial year was Community Health and Enhanced Primary Care Services

Short-term and Long-term ObjectivesThe entity’s short -term objectives are to maintain liquidity, satisfy Funding Level Agreements as well as achieve targets set within the financial guidelines of these agreements.

The entity’s long-term objectives are to maintain and grow Capital and Infrastructure so that Programs and Service Level Agreements can be carried out and optimum service is provided to our clients and community.

StrategiesTo achieve these objectives, the organisation has adopted the following strategies:

• Maintain adequate liquidity to meet our working capital objectives.

• Regular re-investment in our assets through retention of funds and capital asset replacement planning.

• Plan annual budgets with strong surplus results so that optimum resources can be purchased to deliver services required to provide value to our clients and the community.

Key Performance MeasuresThe Company measures its own performance through the use of both quantitative and qualitative benchmarks.

The benchmarks are used by Directors to assess the financial sustainability of the Company and whether the Company’s short-term and long-term objectives are being achieved. For more information see the table above.

Information on Directors

Ms Julie BUSCHDeputy Chair – Board of Directors

QualificationsGraduate Certificate Business – Monash University, Graduate Certificate Shopping Centre Management – University of NSW, Bachelor of Arts (Journalism/Psychology)

Professional MembershipsAustralian Institute Company Directors, Women On Boards, Property Council of Australia

ExperienceDirector since February 2012. Senior Property and Business Manager with over 25 years experience. Non-Executive Director of a number of Not-for-Profit organisations, State Government Trust and Local Government entities.

Special ResponsibilitiesChair - Super Clinic Sub-Committee Chair - Remuneration and Nomination Sub-Committee Member - Finance Committee

Key Performance Measures 2013 2012Actual

(Hrs)Benchmark

(Hrs)Actual

(Hrs)Benchmark

(Hrs)

Number of contact/support hours with clients - CH 28,936 32,633 38,310 33,306

Number of contact/support hours with clients - HACC 13,297 14,388 10,704 10,625

Number of contact/support hours with clients – Mental Health 15,696 16,914 16,635 18,084

Number of contact/support hours with clients - PAG 51,342 52,182 56,187 52,124


Mr. Deva COREATreasurer - Board of Directors

QualificationsMasters in Business Accounting (Monash University), Graduate Diploma in Financial Management (Monash University)

Professional MembershipsFellow of CPA Australia, Fellow Chartered Institute of Management Accountants (UK), Chartered Global Management Accountant.

ExperienceDirector since 2012. Chief Financial Officer AMES with over 35 years experience in finance/accounting, governance and corporate services both in Australia and overseas.

Special ResponsibilitiesChair - Finance Committee Member - Super Clinic Sub-Committee

Ms Sam DENNYMember – Board of Directors

QualificationsProject Management Professional (PMP), Master of Business Administration, Bachelor of Arts (BA), Certificate IV Training and Assessment

Professional MembershipsN/A

ExperienceDirector since February 2012. Senior Health Management experience in Australia and New Zealand. Over 35 years experience with a strong project management focus.

Special ResponsibilitiesN/A

Ms. Margaret DOUGLASMember - Board of Directors

QualificationsMaster of Business Administration (University of Melbourne); Bachelor of Science (University of Melbourne) Associate of Music (University of Melbourne); Certificate of Superannuation Management (Macquarie University); Diploma of Travel Journalism; Graduate, Australian Institute of Company Directors.

Professional MembershipsWomen on Boards

ExperienceDirector since 2013. Extensive executive management experience at CEO level since 1996 in service industries, State and Local Government and a range of private enterprises, including law, travel and mining. Over 10 years experience on Boards.

Special ResponsibilitiesMember – Finance Committee

Ms. Milena GIUSTI-MEZZATESTAMember - Board of Directors (Deceased)

QualificationsAssociate Diploma Accounting - Taxation


ExperienceDirector since 2010. Director of a number of private companies. Local resident.


Dr. John HODGSONChair – Board of Directors

QualificationsMBBS


ExperienceDirector since 1997. Board Chair since 2008. Local clinician and owner of Coolaroo Clinic. Member of a number of health related clinical committees. Director of three private companies.

Special ResponsibilitiesMember – Super Clinic Sub Committee

Mr. James HOOPERMember - Board of Directors

QualificationsMaster of Labour Relations Law, B.A. (Hons)/LLB

Professional MembershipsVictorian Bar, Industrial Relations Society of Victoria.

ExperienceDirector since November 2011. Member of the Victorian Bar specialising in employment and industrial relations matters.

Special ResponsibilitiesMember – Super Clinic Sub-Committee Member – Finance Committee

Annual Report 20136

Directors’ Report cont.

Ms. Anne JUNGWIRTHMember - Board of Directors

QualificationsGraduate Diploma in Applied Social Psychology, Graduate Diploma in Librarianship, Diploma of Education (secondary), Bachelor of Arts (Psychology major)

Professional MembershipsAssociate Fellow, Australian College of Health Service Executives.

ExperienceDirector since 2008. Experienced health professional and former CEO in Community Health. Over 25 years of health experience. Committed to addressing social and health inequalities and to improving the health and wellbeing of individuals, families, and local communities. Local resident, has resided in Hume for 20 years.


Ms. Aysegul KOKSUZMember - Board of Directors

QualificationsN/A


ExperienceDirector since 2012. Local resident, volunteer and support worker. Management Committee Member of the Northern Turkish Women’s Association and Northern Turkish Family Association since 2008.


Ms. Evelyn NICHOLSONMember - Board of Directors

QualificationsN/A


ExperienceDirector since 2012. Active member of a number of local community groups and committees. Local resident.


Mr. Tony NIPPARDMember – Board of Directors (Resigned 16th July 2012)

QualificationsBachelor of Arts, Bachelor of Commerce (Hons), Master of Arts.


ExperienceDirector since February 2012.


Mr. Don PECKHAMMember - Board of Directors (Term of Appointment Ceased November 2012)

QualificationsN/A

ExperienceDirector since 2008. Retired. Former member of the Australian Defence Forces. Significant experience in purchasing and logistics. Local resident.


Mr. Malcolm VUEMember - Board of Directors

QualificationsDiploma in Community Development, Bachelor Degree of Community Development (completing).


ExperienceDirector since 2012. School teacher and Deputy Principal, Lao Community in Adelaide (1997-2000). Current President and Sub Committee Member of Hmong Australia Society of Victoria. Convenor of Hmong 3777 Radio Program. Producer, SBS Hmong Radio Program. Local resident.



Meetings of DirectorsDuring the financial year, 11 meetings of Directors were held. Attendances by each Director were as follows:

Directors’ MeetingsNumber

eligible to attend

Number attended

Julie Busch 11 11

Deva Corea 11 10

Sam Denny 11 10

Margaret Douglas 2 2

Milena Giusti-Mezzatesta (Deceased)

6 4

John Hodgson 11 10

James Hooper 11 10

Anne Jungwirth 11 10

Aysegul Koksuz 5 4

Evelyn Nicholson 5 5

Tony Nippard 0 0

Don Peckham 6 5

Malcolm Vue 5 4

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. At 30 June 2013 the collective liability of members was $8 (2012: $8).

Auditor’s Independence DeclarationThe lead Auditor’s Independence Declaration for the year ended 30 June 2013 has been received and can be found on page 9 of the Directors’ report.

The Directors’ report is signed in accordance with a resolution of the Board of Directors:

J. HODGSON Director

D. COREA Director

Dated this 1st day of October 2013

Annual Report 20138

Auditor’s Independence Declaration


Statement of Profit or Loss and Other Comprehensive Incomefor the Year Ended 30 June 2013

2013 2012

Note $ $

Revenue 2 17,316,076 16,612,271

Employee benefits expense (11,841,965) (12,023,191)

Depreciation, amortisation and impairments (421,974) (438,838)

Contracted services (1,182,407) (1,289,148)

Rental expense (265,959) (264,294)

Medical supplies (211,578) (504,466)

Computer and Office expenses (640,180) (611,845)

Other expenses (1,590,569) (1,420,714)

Finance costs (13,995) (46,634)

Profit/(Loss) for the year 1,147,449 13,141

Other comprehensive income:

NIL - -

Total comprehensive income for the year 1,147,449 13,141

Total comprehensive income attributable to members of the entity 1,147,449 13,141

The accompanying notes form part of the financial statements.

Annual Report 201310

Statement of Financial Positionas at 30 June 2013

2013 2012

Note $ $

CURRENT ASSETS

Cash and cash equivalents 4 9,399,400 7,356,079

Trade and other receivables 5 257,290 205,384

Inventories 55,766 55,764

Other assets 6 368,947 296,371

Total current assets 10,081,403 7,913,598

NON-CURRENT ASSETS

Property, plant and equipment 7 7,082,671 7,094,522

Total non-current assets 7,082,671 7,094,522

TOTAL ASSETS 17,164,074 15,008,120

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 8 8,679,546 7,526,980

Short-term borrowings 9 105,125 240,741

Short-term provisions 10 2,111,276 2,000,640

Total current liabilities 10,895,947 9,768,361

NON-CURRENT LIABILITIES

Long-term provisions 10 259,484 378,565

Total non-current liabilities 259,484 378,565

TOTAL LIABILITIES 11,155,431 10,146,926

NET ASSETS 6,008,643 4,861,194

EQUITY

Reserves 11 4,243,460 4,243,460

Retained earnings 1,765,183 617,734

TOTAL EQUITY 6,008,643 4,861,194



Statement of Changes in Equityfor the Year Ended 30 June 2013

Retained Earnings

Revaluation Surplus Reserve Total

Note $ $ $

BALANCE 1 JULY 2011 604,593 4,243,460 4,848,053

Total comprehensive income for the year

Profit/(loss) attributable to members 13,141 - 13,141

Total other comprehensive income for the year - - -

Total comprehensive income for the year attributable to members of the entity

13,141 - 13,141

BALANCE AT 30 JUNE 2012 617,734 4,243,460 4,861,194

BALANCE AT 1 JULY 2012 617,734 4,243,460 4,861,194

Total comprehensive income for the year

Profit/(loss) attributable to members 1,147,449 - 1,147,449

Total other comprehensive income for the year - - -

Total comprehensive income for the year attributable to members of the entity

1,147,449 - 1,147,449

BALANCE AT 30 JUNE 2013 1,765,183 4,243,460 6,008,643



Statement of Cash Flowsfor the Year Ended 30 June 2013

2013 2012

Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Grant receipts 14,547,113 14,372,898

Patient fees receipts 1,660,475 1,707,241

Interest received 87,295 59,776

Other receipts 1,526,784 798,816

Payments to suppliers and employees (15,233,193) (15,471,945)

NET CASH GENERATED FROM OPERATING ACTIVITIES 2,588,474 1,466,786

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of plant and equipment 44,364 25,293

Payments for non-current assets (453,901) (974,167)

NET CASH PROVIDED BY/ (USED IN) INVESTING ACTIVITIES (409,537) (948,874)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from/(Repayment of) borrowings (135,616) (140,867)

NET CASH GENERATED BY/ (USED IN) FINANCING ACTIVITIES (135,616) (140,867)

NET INCREASE IN CASH HELD 2,043,321 377,045

Cash and cash equivalents at beginning of financial year 7,356,079 6,979,034

CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 4 9,399,400 7,356,079



Notes to the Financial Statementsfor the Year Ended 30 June 2013

1. Summary of Significant Accounting Policies

Basis of PreparationDianella Community Health has elected to early adopt the Australian Accounting Standards – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. Accordingly, the entity has also early adopted AASB 2011–2: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements and AASB 2012–7: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements in respect of AASB 2010–6: Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets and AASB 2011–9: Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under the Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts

presented in the financial statements have been rounded to the nearest dollar.

The financial statements were authorised for issue on 1st October 2013 by the directors of the company.

Accounting Policies

A. PROPERTY, PLANT AND EQUIPMENTEach class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Freehold PropertyFreehold land and buildings are shown at their fair value based on periodic valuations by external independent valuers, less subsequent depreciation for buildings, as required by Australian Accounting Standards.

In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value.

Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are charged to the statement of comprehensive income.

As the revalued buildings are depreciated the difference between depreciation recognised in the statement of comprehensive income, which is based on the revalued carrying amount of the asset, and the depreciation based on the asset’s original cost is transferred from the revaluation surplus to retained earnings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the assets.

Freehold land and buildings that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value

of the asset at the date it is acquired.

Plant and equipmentPlant and equipment are measured on the cost basis and therefore carried at cost less accumulated depreciation and any impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(e) for details of impairment).

Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired.

DepreciationThe depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight line basis over their useful lives to the company commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset

Buildings 2%

Plant and Equipment 5% - 33%

Motor Vehicles 10% - 15%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit and loss in the period they arise. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.


Notes to the Financial Statements for the Year Ended 30 June 2013

B. CASH AND CASH EQUIVALENTSCash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowing in current liabilities on the statement of financial position.

C. LEASES Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the entity are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, recognised as expenses on a straight-line basis over the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

D. INVENTORIESInventories are measured at the lower of cost and current replacement cost.

Inventories acquired at no cost, or for nominal consideration are valued at the current replacement cost as at the date of acquisition.

E. IMPAIRMENT OF ASSETSAt the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s

fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash generating unit to which the asset belongs.

F. FINANCIAL INSTRUMENTS

Initial Recognition and Initial MeasurementFinancial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair value through profit or loss in which case transaction costs are expensed to profit or loss immediately.

Classification and Subsequent MeasurementFinancial instruments are subsequently measured at fair value, amortised cost using the effective interest method or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and

other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

(i) Financial assets at fair value through profit and lossFinancial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period. All other loans and receivables are classified as non-current assets.

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

1. Summary of Significant Accounting Policies continued


(iv) Available for sale financial assetsAvailable-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are included in non-current assets, except for those which are expected to be disposed of within 12 months after the end of the reporting period. (All other financial assets are classified as current assets.)

Available-for-sale financial assets are classified as non-current assets when they are not expected to be sold within 12 months after the end of the reporting period. All other available -for-sale financial assets are classified as current assets.

(v) Financial liabilitiesNon-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss though the amortisation process and when the financial liability is derecognised.

ImpairmentAt the end of each reporting date, the company assesses whether there is objective evidence that a financial instrument has been impaired. A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objective evidence that impairment as a result of one or more events (a “loss event”) has occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative

decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance accounts.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

G. EMPLOYEE BENEFITSProvision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits

that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

Contributions are made by the entity to an employee superannuation fund and are charged as expenses when incurred.

H. PROVISIONSProvisions are recognised when the entity has a legal or constructive obligation, as a result of past events for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at reporting period.

I. REVENUENon-reciprocal grant revenue is recognised in profit and loss when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered to the contributor, otherwise the grant is recognised as income on receipt.

Dianella Community Health receives non-reciprocal contributions of assets from the government and other parties for zero or a nominal value. These assets are recognised at fair value on the date of acquisition



in the statement of financial position, with a corresponding amount of income recognised in profit or loss.

Donations and bequests are recognised as revenue when received.

Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

All revenue is stated net of the amount of goods and services tax (GST).

J. GOODS AND SERVICES TAX (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

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 ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

K. INCOME TAXNo provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

L. COMPARATIVE FIGURESWhere required by Accounting Standards comparative figures have been adjusted to confirm with changes in presentation for the current financial year.

M. TRADE AND OTHER PAYABLESTrade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

N. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTSThe directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic date, obtained both externally and within the company.

Key Estimates

ImpairmentAt 30 June 2013, the directors have performed a directors’ valuation on the freehold land and building. The directors have reviewed the key assumptions adopted by the valuers in 2011 and do not believe there has been a significant change in the assumptions at 30 June 2013. The directors therefore believe the carrying amount of the land correctly reflects the fair value less cost to sell at 30 June 2013.

O. ECONOMIC DEPENDENCEDianella Community Health is dependent on the Department of Human Services for the majority of its revenue used to operate the business. At the date of this report the Board of Directors has no reason to believe the Department will not continue to support Dianella Community Health.

1. Summary of Significant Accounting Policies continued

I. REVENUE CONTINUED


2013 2012

Note $ $

2. RevenueRevenue from (non-reciprocal) government grants and other

- Operating Grants 13,469,212 12,858,360

- Other grant revenue 1,077,901 1,015,343

- Medical patient fees revenue 1,660,475 1,707,241

- Co payment fees 441,220 403,243

16,648,808 15,984,187

Other revenue

- Interest received 2(a) 87,295 59,776

- Rental revenue 134,320 107,631

- Gain on disposal of property, plant and equipment 86 1,816

- Other revenue 445,567 458,861

667,268 628,084

Total revenue 17,316,076 16,612,271

(a) Interest revenue from:Financial Institutions 87,295 59,776

Total interest revenue 87,295 59,776

3. Profit/(loss) for the Yeara. Expenses Finance costs: external 13,995 46,634

Total finance costs 13,995 46,634

Bad and doubtful debts

Bad debts - 294

Total bad and doubtful debts - 294



2013 2012Note $ $

4. Cash and Cash EquivalentsCash on hand 10,550 9,443

Cash at bank 93,169 78,862

Short term bank deposits 9,295,681 7,267,774

9,399,400 7,356,079

Reconciliation of Cash

Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in the statement of financial position as follows:

Cash and cash equivalents 9,399,400 7,356,079

Bank overdraft - -

13 9,399,400 7,356,079

5. Trade and Other ReceivablesCURRENT

Trade receivables 257,290 205,384

Provision for impairment of receivables - -

13 257,290 205,384

6. Other AssetsCURRENT

Prepayments 121,836 59,567

Accrued Income 247,111 236,804

368,947 296,371


2013 2012$ $

7. Property Plant and Equipment

LAND AND BUILDINGS

Land

At independent valuation - 2008 2,145,000 2,145,000

Buildings

At independent valuation - 2008 2,999,060 2,999,060

Less accumulated depreciation (270,149) (210,168)

Total Buildings 2,728,911 2,788,892

Total land and buildings 4,873,911 4,933,892

OFFICE FURNITURE AND EQUIPMENT

At cost 3,683,109 3,484,045

Less accumulated depreciation (2,625,959) (2,358,228)

Total office furniture and equipment 1,057,150 1,125,817

MOTOR VEHICLES

At cost 991,375 1,043,137

Less accumulated depreciation (690,444) (663,533)

Total motor vehicles 300,931 379,604

SUPER CLINIC WORK IN PROGRESS

At cost 850,679 655,209

Total Super Clinic Work in progress 850,679 655,209

Total property, plant and equipment 7,082,671 7,094,522

a. Movements in Carrying AmountsMovements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Freehold Land Buildings

Office Furniture & Equipment

Motor Vehicles

Super Clinic Work in

Progress Total

$ $ $ $ $ $

Balance at beginning of the year 2,145,000 2,788,892 1,125,817 379,604 655,209 7,094,522

Additions - - 199,064 59,367 195,470 453,901

Disposals - - - (43,778) - (43,778)

Depreciation expense - (59,981) (267,731) (94,262) - (421,974)

Carrying amount at the end of the year 2,145,000 2,728,911 1,057,150 300,931 850,679 7,082,671

A valuation was performed at 30 June 2011 by independent valuers, Knight Frank. The Directors reviewed the key assumptions made by the valuers and have concluded that these assumptions remain materially unchanged, and are satisfied that carrying value does not exceed the recoverable amount of land and buildings at 30 June 2013.



2013 2012Note $ $

8. Trade and Other PayablesCURRENT

Trade payables 689,788 761,149

Other payables 390,592 -

Sundry payables and accruals 861,855 593,414

Income in advance 6,737,311 6,172,417

8,679,546 7,526,980

a. Financial liabilities at amortised cost classified as trade and other payables Trade and other payables

- Total current 8,679,546 7,526,980

- Total non-current - -

Less income in advance (6,737,311) (6,172,417)

Less other payables (390,592) -

Financial Liabilities as trade and other payables 13 1,551,643 1,354,563

9. BorrowingsCURRENT

Bank Loan - Secured 9(a) 105,125 218,702

Lease liability 12 - 22,039

13 105,125 240,741

(a) Security DetailsThe bank loan is secured by a mortgage over the property held at 6 Newbold Avenue, Craigieburn VIC.


2013 2012Note $ $

10. ProvisionsCURRENT

Provision for employee benefits: annual leave/ADO 798,276 826,297

Provision for employee benefits: long service leave 1,313,000 1,174,343

2,111,276 2,000,640

NON-CURRENT

Provision for employee benefits: long service leave 259,484 378,565

259,484 378,565

Analysis of total provisionsEmployee

Benefits

$

Opening balance 1 July 2012 2,379,205

Additional provisions raised during the year 940,872

Amounts used (949,317)

Balance 30 June 2013 2,370,760

Provision for Employee BenefitsA provision has been recognised for employee entitlements relating to long service leave.

The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the company does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.

The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.

In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 1(g).

11. Reserves

a. Revaluation Surplus The revaluation surplus records the revaluations of non-current assets.



2013 2012Note $ $

12. Capital and Leasing Commitmentsa. Finance lease commitmentsPayable – minimum lease payments

- Not later than 12 months - 22,039

- Between 12 months and 5 years - -

- Later than 5 years - -

Minimum lease payments - 22,039

b. Operating lease commitmentsNon-cancellable operating leases contracted for but not recognised in the financial statements

Payable – minimum lease payments

- Not later than 12 months 251,186 244,913

- Between 12 months and 5 years 104,661 73,675

- Later than 5 years - -

355,847 318,588

The property lease commitments are operating leases contracted for but not capitalised in the financial statements however in the absence of signed agreements only the 12 months commitments are listed above. They cover three premises, namely 35 Johnstone Street, Broadmeadows and 391 and 393 Camp Road, Broadmeadows.

The motor vehicle lease commitments are non-cancellable finance leases contracted for with a three- to five-year term. New agreements have been entered only for three years. No capital commitments exist in regards to the lease commitments at year-end.

c. Capital commitments – GP Super ClinicA decision has been made by the Directors of the company to build the Hume GP Super Clinic. The Commonwealth Government will contribute the majority of the funds for the project. The total cost of the project is estimated to be approximately $12.5 million and the company expects to borrow approximately $4.6m to fund the project.

13. Financial Risk ManagementThe company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

Financial Assets

Cash and Cash Equivalents 4 9,399,400 7,356,079

Loans and receivables 5 257,290 205,384

9,656,690 7,561,463

Financial Liabilities

Financial Liabilities at amortised cost

- Trade and other payables 8 1,551,643 1,354,563

- Borrowings 9 105,125 240,741

1,656,768 1,595,304


14. Retirement Benefit ObligationsAt 30 June 2013 two of Dianella Community Health’s employees will receive defined benefit post-employment benefits from Health Super. Health Super is a defined benefit multi-employer plan. Sufficient information is not available to account for Health Super as a defined benefit plan as each employer is exposed to actuarial risks associated with current and former employees of other entities. As a result there is no consistent and reliable basis for allocating the obligation, assets and cost to individual entities. Therefore, Dianella Community Health has adopted defined contribution accounting for these employees.

Based on the 30 June 2012 Actuarial overview Health Super had a deficit of $9 million. The deficit is the difference between assets, valued at the fair market value, and liabilities. Liabilities are determined to be the greater of the actuarial present value of all future expected benefit payments accrued by members at the valuation date, (“present value of accrued benefits”) and the benefit that has vested to members at the valuation date (“vested benefits”). Where there is a deficit the Fund’s Actuary may recommend an increase in employer contributions in the future. In relation to the quantum of the notional shortfall for the two staff on the defined benefits scheme, Dianella’s notional shortfall is $7,708.

15. Segment ReportingThe company operates predominantly in one business and geographical segment being the community health services sector, providing community health services throughout North West Melbourne.

16. Contingent Liabilities and Contingent AssetsThere are no contingent liabilities or assets to be disclosed in the financial report.

17. Events after the Reporting PeriodThe directors are not aware of any significant events since the end of the reporting period.

18. Key Management Personnel CompensationAny person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel.

The totals of remuneration paid to key management personnel (KMP) of the company during the year are as follows:

2013 2012$ $

Key management personnel compensation 708,575 729,008

19. Company DetailsThe registered office of the company is:21-27 Hudson Circuit, Meadow Heights Vic 3048

Principal place of business is: 35 Johnstone Street, Broadmeadows Vic 3047


Directors’ Declaration

In accordance with a resolution of Directors of Dianella Community Health, the directors declare that:

1. The financial statements and notes, as set out on pages [8 to 28], are in accordance with the Corporations Act 2001:

a. comply with Australian Accounting Standards – Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position as at 30 June 2013 and of the performance for the year ended on that date.

2. In the Directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

J. HODGSON Director

D. COREA Director

Dated this 1st day of October 2013


Independent Auditor’s Report


Independent Auditor’s Report cont.


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Your opinion is important to usWhat is your opinion about this report? Can you make any suggestions to improve it? You can give us your feedback by writing to:

Dianella Community Health Quality Unit 35 Johnstone Street Broadmeadows VIC 3047

For further information please visit the Dianella website www.dianella.org.au

Locations1. Broadmeadows

35 Johnstone Street, Broadmeadows Phone General (03) 8345 5678 Medical (03) 8345 5777 Dental Emergency (03) 8311 4400 Dental General (03) 8345 5410

2. Broadmeadows 391 Camp Road, Broadmeadows Phone (03) 9309 0320

3. Meadow Heights 21-27 Hudson Circuit, Meadow Heights Phone (03) 9302 8888

4. Craigieburn 55 Craigieburn Road, Craigieburn Phone (03) 9308 1222

5. Mental Health Rehabilitation Service 393 Camp Road, Broadmeadows Phone (03) 9309 8784

6. Broad Insight Group (BIG) Corner Rosebud Crescent and Sorrento Street, Broadmeadows Phone (03) 9309 9200

Annual Report 2013 - DPV Health · James Hooper 11 10 Anne Jungwirth 11 10 Aysegul Koksuz 5 4...

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