Otway Health Report of Operations 2012 -2013

This report, which covers the reporting period 1 July 2012 – 30 June 2013, is fully compliant with the Health Services Annual Reporting Guidelines for 2012-2013 and will be tabled in Parliament in September and presented to the general public at Otway Health & Community Services Annual General Meeting.

In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Otway Health & Community Services (Otway Health) for the year ending 30th June 2013.

Mr Peter HaganPresident Apollo Bay, 31 July 2013

Vision, Mission & Values 2

Chairman and Chief Executive’s Report 3

Your health service in a nutshell 6

Developing and encouraging strategic 7 relationships 2012 – 2013 Board of Governance 9

Organisational Structure 10

Staff by Department 12

Workforce data 13

Occupational Health and Safety 13

Services to our community 14

Client participation 15

Our neighbourhood 16

Statutory compliance requirements 17

Finance 20

Disclosure Index 21

CONTENTS

The Multi-purpose Services program seeks to achieve the following objectives for small rural and remote communities:

Improved access to a mix of health and aged care services that meet • community needs;

More innovative, flexible and integrated service delivery; •

Flexible use of funding and/or resource infrastructure within • integrated service planning;

Improved quality of care for clients; and •

Improved cost-effectiveness and long term viability of services.•

the Commonwealth, the State and Otway Health have agreed to co-operate for the establishment and maintenance of a Multi-purpose Service in Apollo Bay and District.

The Multi-purpose Services program is jointly funded by the Commonwealth and the State;

our VISION To achieve a healthy, safe and secure community

our MISSION To enable people in our region to optimise their wellbeing through providing access to health and community services.

our ValuES RESpONSIVEListen, consult (ask) and then act in a timely, flexible, competent way to the needs of individuals, community and the broader health sector environment.

ExCEllENCEStrive to improve everything we do.

INTEgRITyCommunity and individuals can trust that our services and the advice we give are in their best interests and open to review and scrutiny.

EMpOwER Build the capacity of individuals to look after themselves and make a positive difference to their own health and wellbeing and encourage them to act and make decisions for which they can take responsibility and account.

Otway Health also cares for the environment. Our magazine stock is 60% post-consumer recycled and both the stock and printing process is carbon neutral.

our VISION To achieve a healthy, safe and secure community

our MISSION To enable people in our region to optimise their wellbeing through providing access to health and community services.

our ValuES RESpONSIVEListen, consult (ask) and then act in a timely, flexible, competent way to the needs of individuals, community and the broader health sector environment.

ExCEllENCEStrive to improve everything we do.

INTEgRITyCommunity and individuals can trust that our services and the advice we give are in their best interests and open to review and scrutiny.

EMpOwER Build the capacity of individuals to look after themselves and make a positive difference to their own health and wellbeing and encourage them to act and make decisions for which they can take responsibility and account.

Otway Health also cares for the environment. Our magazine stock is 60% post-consumer recycled and both the stock and printing process is carbon neutral.

Chairman and Chief exeCutive’s RepoRt

challenges along the way. As ever, we banded together as a resilient organisation and forged ahead, keeping our vision of achieving a healthy, safe and secure community at the forefront of our minds in all our decision making processes. It is with pleasure that we present this report to you; a culmination of our highlights, our challenges and our vision for the future.

A SnApShotthe flood thAt cAme in the night In August 2012, the main drain in Pengilley Avenue blocked after heavy rain and overflowed into the courtyard of Otway Health. The water built up until it flowed into the building that accommodates high care, the kitchen, Barham Wing dining room, the nurse’s station and the administration area. After the water was pumped out, extensive damage remained with cabinetry, windows warped and floors and walls destroyed. The damage took four months and $100,000 to repair with the help of local tradesmen and VMIA insurance funds. All high care residents had to be relocated to Colac Area Health as their rooms were uninhabitable. Staff from Otway Health went to work at Colac Area Health with them to provide care and a familiar face. Everyone celebrated when we brought them home on 18th December, just in time for Christmas. The staff are to be commended on their ‘can do’ attitude during this time where disruptions to their work and working environment were substantial.

the community SpiRit iS Alive And flouRiShing Improving the health of our community is our reason for existing, so Otway Health as a Multi-Purpose Service provides a wide range of treatment and health promoting services and supports health-related community activities. The mentoring program that operates in partnership with the Apollo Bay P-12 School, aims to connect the generations and strengthen community ties for the young people of the area. The volunteer mentors share their experience and skills with the teens and together they participate in a variety of practical activities that build a network of support around the youngsters. The long range outcome of the project is to develop relationships and to foster good mental health. Otway Health also supports the Aquatic Centre Committee, advocating for the construction of an indoor heated pool for Apollo Bay. Funds need to be raised from the community and pledges are being made to bring this vision to fruition. The health advantages for all ages are evident and the community currently considers this issue to be their number one priority. ouR finAnceS Otway Health has experienced significant financial impacts resulting from the August 2012 floods despite insurance claims being met. The disruption has had an ongoing effect as empty beds impact on the bottom line. However, the $28,788 deficit is a reasonable outcome considering the unpredictable events of the somewhat memorable year.

Otway Health has seen significant changes over the past 2012/2013 financial year and met some substantial

3 Otway Health & Community Services Report of Operations 2012 - 2013

Chairman and Chief exeCutive’s RepoRt

challenges along the way. As ever, we banded together as a resilient organisation and forged ahead, keeping our vision of achieving a healthy, safe and secure community at the forefront of our minds in all our decision making processes. It is with pleasure that we present this report to you; a culmination of our highlights, our challenges and our vision for the future.

A SnApShotthe flood thAt cAme in the night In August 2012, the main drain in Pengilley Avenue blocked after heavy rain and overflowed into the courtyard of Otway Health. The water built up until it flowed into the building that accommodates high care, the kitchen, Barham Wing dining room, the nurse’s station and the administration area. After the water was pumped out, extensive damage remained with cabinetry, windows warped and floors and walls destroyed. The damage took four months and $100,000 to repair with the help of local tradesmen and VMIA insurance funds. All high care residents had to be relocated to Colac Area Health as their rooms were uninhabitable. Staff from Otway Health went to work at Colac Area Health with them to provide care and a familiar face. Everyone celebrated when we brought them home on 18th December, just in time for Christmas. The staff are to be commended on their ‘can do’ attitude during this time where disruptions to their work and working environment were substantial.

the community SpiRit iS Alive And flouRiShing Improving the health of our community is our reason for existing, so Otway Health as a Multi-Purpose Service provides a wide range of treatment and health promoting services and supports health-related community activities. The mentoring program that operates in partnership with the Apollo Bay P-12 School, aims to connect the generations and strengthen community ties for the young people of the area. The volunteer mentors share their experience and skills with the teens and together they participate in a variety of practical activities that build a network of support around the youngsters. The long range outcome of the project is to develop relationships and to foster good mental health. Otway Health also supports the Aquatic Centre Committee, advocating for the construction of an indoor heated pool for Apollo Bay. Funds need to be raised from the community and pledges are being made to bring this vision to fruition. The health advantages for all ages are evident and the community currently considers this issue to be their number one priority. ouR finAnceS Otway Health has experienced significant financial impacts resulting from the August 2012 floods despite insurance claims being met. The disruption has had an ongoing effect as empty beds impact on the bottom line. However, the $28,788 deficit is a reasonable outcome considering the unpredictable events of the somewhat memorable year.

Otway Health has seen significant changes over the past 2012/2013 financial year and met some substantial


aCCREdITaTION – ENSuRINg wE dElIVER ThE BESTChanges to accreditation with the introduction of the ten National Safety and Quality Health Service Standards set us a challenge to further develop our systems and to exceed the standards wherever possible. The diversity of our services results in multiple accreditations for all our program areas and increases the cost of compliance. Otway Health staff are working to meet the new National Safety and Quality Health Service Standards introduced as part of the Federal Health Reforms. In addition to accreditation under the National Safety and Quality Health Service Standards, Otway Health’s Child Care Centre has met all seven standards and exceeded the average in five standards for the accreditation process of the Australian Children’s Education and Care Quality Authority (ACECQA). The Home and Community Care Program is required to meet the Community Common Care Standards and our whole organisation must align with the Quality Improvement Council Standards. These will be audited as part of the accreditation review performed by Quality Innovation Performance (QIP) at Otway Health in 2014.

KEEpINg OuR fINgER ON ThE pulSEIn the past year significant advances in the use of information technology has enabled the establishment of a video link from our Urgent Care Unit to Barwon Health in Geelong to provide added support for the doctors with direct access to specialists. The Apollo Bay and District Health Foundation have generously provided the funding for the camera equipment for the video unit to enable this technology to be a realisation. We have changed over from a manual system to electronic payroll and we now provide online training for all staff. We are also upgrading our patient management system and utilising innovative ways of engaging with our community through social media and online meetings.

gp ClINIC Otway Health relies on the doctor at the Apollo Bay General Practice to provide an on-call service to the Urgent Care Unit so that 24/7 cover can be maintained. In the past, a separate company had been contracted to recruit the locums needed to give the doctor much needed breaks. In November this arrangement changed and Health Financial was engaged to recruit locums, manage the operation and share the ownership of the GP Clinic.

dIVERSIfyINg BRINgS OuR wORld ClOSERThe success of our international recruitment for nurses has enabled Otway Health to be fully staffed and maintain our staffing levels despite our isolation. We welcomed individuals from Sri Lanka, Philippines, Mauritius, China, India, America and England. This diversity enriches our culture and has a positive ripple effect for everyone across the organisation and within the community.

BuIldINg fOR a VIaBlE fuTuREPurchase of 9 Ramsden Avenure, Apollo BayThe Board, through the Capital Works Committee, approved the strategic purchase of this residential property adjacent to the main site so that Otway Health will have room to grow in future when it is needed.

Upgrade of the Library and Marrar Woorn The Apollo Bay Library has been located in a small building on the grounds of Otway Health for the last six years and it became very evident that patronage was growing and more room was needed to provide an enjoyable space for browsing books and using the internet. At the same time, the activities at Marrar Woorn were increasing and the house needed more space to extend activities to meet the demand. The two concepts came together and an extension was developed. Colac Otway Shire and Otway Health, with the assistance of funding from the State Government, joined the projects together to form a community precinct, where the synergies for both the library and the Neighbourhood House resulted in an improved environment with room for media access and a children’s library section.

Ambulance Station Gym The old Ambulance Station was vacated some time ago by Ambulance Victoria when they built a new modern station on the Otway Health site. It has always been the plan to convert the station into a new well appointed community gym to complete the community precinct, with its close proximity to the library, child care centre and other community services. The flood that affected our main site impacted the development of this project as naturally our sole focus and resources were used on remedying the situation the flood created.

4Otway Health & Community Services Report of Operations 2012 - 2013

aCCREdITaTION – ENSuRINg wE dElIVER ThE BESTChanges to accreditation with the introduction of the ten National Safety and Quality Health Service Standards set us a challenge to further develop our systems and to exceed the standards wherever possible. The diversity of our services results in multiple accreditations for all our program areas and increases the cost of compliance. Otway Health staff are working to meet the new National Safety and Quality Health Service Standards introduced as part of the Federal Health Reforms. In addition to accreditation under the National Safety and Quality Health Service Standards, Otway Health’s Child Care Centre has met all seven standards and exceeded the average in five standards for the accreditation process of the Australian Children’s Education and Care Quality Authority (ACECQA). The Home and Community Care Program is required to meet the Community Common Care Standards and our whole organisation must align with the Quality Improvement Council Standards. These will be audited as part of the accreditation review performed by Quality Innovation Performance (QIP) at Otway Health in 2014.

KEEpINg OuR fINgER ON ThE pulSEIn the past year significant advances in the use of information technology has enabled the establishment of a video link from our Urgent Care Unit to Barwon Health in Geelong to provide added support for the doctors with direct access to specialists. The Apollo Bay and District Health Foundation have generously provided the funding for the camera equipment for the video unit to enable this technology to be a realisation. We have changed over from a manual system to electronic payroll and we now provide online training for all staff. We are also upgrading our patient management system and utilising innovative ways of engaging with our community through social media and online meetings.

gp ClINIC Otway Health relies on the doctor at the Apollo Bay General Practice to provide an on-call service to the Urgent Care Unit so that 24/7 cover can be maintained. In the past, a separate company had been contracted to recruit the locums needed to give the doctor much needed breaks. In November this arrangement changed and Health Financial was engaged to recruit locums, manage the operation and share the ownership of the GP Clinic.

dIVERSIfyINg BRINgS OuR wORld ClOSERThe success of our international recruitment for nurses has enabled Otway Health to be fully staffed and maintain our staffing levels despite our isolation. We welcomed individuals from Sri Lanka, Philippines, Mauritius, China, India, America and England. This diversity enriches our culture and has a positive ripple effect for everyone across the organisation and within the community.

BuIldINg fOR a VIaBlE fuTuREPurchase of 9 Ramsden Avenure, Apollo BayThe Board, through the Capital Works Committee, approved the strategic purchase of this residential property adjacent to the main site so that Otway Health will have room to grow in future when it is needed.

Upgrade of the Library and Marrar Woorn The Apollo Bay Library has been located in a small building on the grounds of Otway Health for the last six years and it became very evident that patronage was growing and more room was needed to provide an enjoyable space for browsing books and using the internet. At the same time, the activities at Marrar Woorn were increasing and the house needed more space to extend activities to meet the demand. The two concepts came together and an extension was developed. Colac Otway Shire and Otway Health, with the assistance of funding from the State Government, joined the projects together to form a community precinct, where the synergies for both the library and the Neighbourhood House resulted in an improved environment with room for media access and a children’s library section.

Ambulance Station Gym The old Ambulance Station was vacated some time ago by Ambulance Victoria when they built a new modern station on the Otway Health site. It has always been the plan to convert the station into a new well appointed community gym to complete the community precinct, with its close proximity to the library, child care centre and other community services. The flood that affected our main site impacted the development of this project as naturally our sole focus and resources were used on remedying the situation the flood created.


Lavers Hill & District Neighbourhood House The Lavers Hill & District Neighbourhood House was developed and supported by Otway Health to provide a central place for town activities. In the past year it has been successful in running a wide range of craft and homemade food courses that brought people from far and wide to enjoy. The sudden loss of its co-ordinator, Karen Holdsworth, in a car accident, was a major tragedy for the town and Lavers Hill is still recovering. A new coordinator is following in Karen’s footsteps and honouring her legacy by bringing adult education, activities and conversations back to the House which are engaging and uniting the community.

Barham Wing RevampBarham Wing accommodates older people with high dependency needs at Otway Health. The area was in need of a revamp after 17 years, so an application was made for funding to the Rural Capital Support Fund. The application was for funds to knock down two walls and create a bigger, brighter lounge/dining area with larger outdoor access to the garden. Funding for installation of tracking for hoists, new televisions and air conditioners for every high care room were also included in this application. The application was successful and the revamp was done at the same time the flood damage was being repaired, given that residents were already relocated; further disruption to them was avoided. The repairs and renovations were jointly completed and the residents came home to a bright new communal space, much to the enjoyment of staff and residents alike.

Nurses Station and Urgent Care UnitThe nurses’ station was also inundated by the flood, so a new floor and cabinetry was required to replace the warped woodwork. Fortunately, the Urgent Care Unit was not flooded so access to the 24 hour Urgent Care Unit was not compromised.

OuR pEOplE MaKE uS whO wE aRE Otway Health is indebted to our staff and volunteers whose unwavering commitment to the residents, clients and to the health and wellbeing of the community keeps the heart of Otway Health beating day and night. Because of these dynamic people, Otway Health is able to keep the doors open 24/7 for all. Our staff are wholly professional and take extraordinary pride in their work as well as enjoyment in working with the people that they serve. Our many volunteers help us in every possible way, simply because they choose to, and we could not function without them and so a huge thank you to each and every one.

BOaRd aNd gOVERNaNCE aT yOuR SERVICEThank you also to the Board Members who volunteer their time to ensure that Otway Health is well run and that it provides appropriate and safe services. This year, we say thank you and goodbye to our current President, Peter Hagan, who is retiring at the end of his term. He has been a steadying hand and an excellent moderator and Otway Health has been fortunate to benefit from his support and active involvement in the Otway Health Board and Committees. We welcome back for another term in the coming year; Denise Hooke, Nina Brooks, Lorraine Harris and Sisca Verwoert and two new Board members Russell Dawe and Denise McLachlan.

As we say goodbye to one of the most challenging years we have had in the organisation for a long time, armed with newly acquired strengths, we focus our energies on the present and future to deliver the very best services to our community.

Peter Hagan President – Board of Governance

Linda WestChief Executive Officer


Lavers Hill & District Neighbourhood House The Lavers Hill & District Neighbourhood House was developed and supported by Otway Health to provide a central place for town activities. In the past year it has been successful in running a wide range of craft and homemade food courses that brought people from far and wide to enjoy. The sudden loss of its co-ordinator, Karen Holdsworth, in a car accident, was a major tragedy for the town and Lavers Hill is still recovering. A new coordinator is following in Karen’s footsteps and honouring her legacy by bringing adult education, activities and conversations back to the House which are engaging and uniting the community.

Barham Wing RevampBarham Wing accommodates older people with high dependency needs at Otway Health. The area was in need of a revamp after 17 years, so an application was made for funding to the Rural Capital Support Fund. The application was for funds to knock down two walls and create a bigger, brighter lounge/dining area with larger outdoor access to the garden. Funding for installation of tracking for hoists, new televisions and air conditioners for every high care room were also included in this application. The application was successful and the revamp was done at the same time the flood damage was being repaired, given that residents were already relocated; further disruption to them was avoided. The repairs and renovations were jointly completed and the residents came home to a bright new communal space, much to the enjoyment of staff and residents alike.

Nurses Station and Urgent Care UnitThe nurses’ station was also inundated by the flood, so a new floor and cabinetry was required to replace the warped woodwork. Fortunately, the Urgent Care Unit was not flooded so access to the 24 hour Urgent Care Unit was not compromised.

OuR pEOplE MaKE uS whO wE aRE Otway Health is indebted to our staff and volunteers whose unwavering commitment to the residents, clients and to the health and wellbeing of the community keeps the heart of Otway Health beating day and night. Because of these dynamic people, Otway Health is able to keep the doors open 24/7 for all. Our staff are wholly professional and take extraordinary pride in their work as well as enjoyment in working with the people that they serve. Our many volunteers help us in every possible way, simply because they choose to, and we could not function without them and so a huge thank you to each and every one.

BOaRd aNd gOVERNaNCE aT yOuR SERVICEThank you also to the Board Members who volunteer their time to ensure that Otway Health is well run and that it provides appropriate and safe services. This year, we say thank you and goodbye to our current President, Peter Hagan, who is retiring at the end of his term. He has been a steadying hand and an excellent moderator and Otway Health has been fortunate to benefit from his support and active involvement in the Otway Health Board and Committees. We welcome back for another term in the coming year; Denise Hooke, Nina Brooks, Lorraine Harris and Sisca Verwoert and two new Board members Russell Dawe and Denise McLachlan.

As we say goodbye to one of the most challenging years we have had in the organisation for a long time, armed with newly acquired strengths, we focus our energies on the present and future to deliver the very best services to our community.

Peter Hagan President – Board of Governance

Linda WestChief Executive Officer


Apollo Bay is surrounded by the steep hills of the Otway Ranges and access to and from major towns is time consuming due to the steep terrain and winding road access.

Travel times to Geelong are up to 2 hours in low season and considerably longer during peak tourist times. Inland, the closest town is Colac, which is one hour travel time during off peak times, despite being only 75 kilometres away. A lack of public transport contributes to the geographic remoteness of the community. That aside, we endeavour to ensure that this challenge is met with fortitude and have worked tirelessly to connect with residents who are especially susceptible given their isolation and circumstances.

Being classified as a Multi-Purpose Service (MPS) affords us the opportunity to better cater for the diversity of our region and the challenges presented with offering

a range of services to cater for the 3,000 residents in the area (swelling to around 30,000 during the summer months). The Service commenced operation on 1st January 1995 and operates with funding from local, State and Federal Government. Otway Health‘s service area is defined as the Colac-Otway South region of the Colac Otway Local Government Area. Our catchment area extends along the Great Ocean Road from Wye River to Glenaire and inland to Lavers Hill, Beech Forest and Forrest. Otway Health is located in the picturesque harbour town of Apollo Bay, some 190km south west of Melbourne.

All residents and visitors to the area are eligible to access services from the MPS. We provide community health, hospital and urgent care, aged accommodation, child care centre, neighbourhood houses (Marrar Woorn in Apollo Bay, Forrest Neighbourhood House in Forrest, and Lavers Hill & District Neighbourhood House in Lavers Hill), rental units for older people (Sea Mist Villas) in Apollo Bay, palliative care, Community (district) nursing, allied health and home-based community care services to people residing in our catchment area.

Your heaLth serviCe in a NuTShEll

Our main challenge is, and always will be, our geographically isolated location.


apOllO Bay

BEECh fORESTwyE RIVER

fORREST

laVERS hIll

GREA

T O

CEAN

RO

AD

PENGILLY AVE

MONTROSE AVE

MOORE ST

THOMSON ST

MC LA

CHLA

N S

T

OTWAY HEALTH

apOllO Bay

Apollo Bay is surrounded by the steep hills of the Otway Ranges and access to and from major towns is time consuming due to the steep terrain and winding road access.

Travel times to Geelong are up to 2 hours in low season and considerably longer during peak tourist times. Inland, the closest town is Colac, which is one hour travel time during off peak times, despite being only 75 kilometres away. A lack of public transport contributes to the geographic remoteness of the community. That aside, we endeavour to ensure that this challenge is met with fortitude and have worked tirelessly to connect with residents who are especially susceptible given their isolation and circumstances.

Being classified as a Multi-Purpose Service (MPS) affords us the opportunity to better cater for the diversity of our region and the challenges presented with offering

a range of services to cater for the 3,000 residents in the area (swelling to around 30,000 during the summer months). The Service commenced operation on 1st January 1995 and operates with funding from local, State and Federal Government. Otway Health‘s service area is defined as the Colac-Otway South region of the Colac Otway Local Government Area. Our catchment area extends along the Great Ocean Road from Wye River to Glenaire and inland to Lavers Hill, Beech Forest and Forrest. Otway Health is located in the picturesque harbour town of Apollo Bay, some 190km south west of Melbourne.

All residents and visitors to the area are eligible to access services from the MPS. We provide community health, hospital and urgent care, aged accommodation, child care centre, neighbourhood houses (Marrar Woorn in Apollo Bay, Forrest Neighbourhood House in Forrest, and Lavers Hill & District Neighbourhood House in Lavers Hill), rental units for older people (Sea Mist Villas) in Apollo Bay, palliative care, Community (district) nursing, allied health and home-based community care services to people residing in our catchment area.

Your heaLth serviCe in a NuTShEll

Our main challenge is, and always will be, our geographically isolated location.


apOllO Bay

BEECh fORESTwyE RIVER

fORREST

laVERS hIll

GREA

T O

CEAN

RO

AD

PENGILLY AVE

MONTROSE AVE

MOORE ST

THOMSON ST

MC LA

CHLA

N S

T

OTWAY HEALTH

apOllO Bay

deveLoping and enCouraging STRaTEgIC RElaTIONShIpS Otway Health is now midway through its strategic plan with its definitive objective on ‘Working together for a healthy community’.

The following areas have been addressed in the last financial year

dElIVER hEalTh aNd COMMuNITy SERVICES IN paRTNERShIp wITh OThER SERVICE pROVIdERS TO MaxIMISE aCCESS TO hEalTh SERVICES:

Focus on excellence in service provision

Work with partner agencies to enhance service coverage

Target health services to the disadvantaged to improve health outcomes

Improve access to oral health services

Sustain a 24/7 Urgent Care Unit

Establish a process to review current services against population needs

The quality system has been improved to encourage every program area to be involved • in quality improvement developments and implementation

The risk system has been reviewed and a proactive process for identifying and • addressing risk in all areas is now in place.

The Volunteer Coordinator, working with the Occupational Therapist has trained • volunteers to provide residents with appropriate hand massage treatments on a regular basis

The mentoring project, in its fourth year, has once again commenced under the • stewardship of Otway Health in partnership with the Apollo Bay P-12 College.

Services are now outreaching to Lavers Hill, Forrest and Wye River which has received • clinical support and health checks to assist members of the local CFA gym. Otway Health is assisting the Neighbourhood House network to develop recovery plans in the event of a natural disaster with $100,000 funding for a special ‘Fire Ready’ project at the Forrest Neighbourhood House.

A social support worker at Otway Health provides emergency relief and support to • disadvantaged people in supported accommodation. Otway Health has successfully tendered for $29,000 from Barwon Medicare Local for the delivery of an ATAPS program (Access to Allied Psychological Support – Indigenous). The project plan has been devised in partnership with a local indigenous corporation and local private psychologist.

The advocacy for access to private and public dental services to isolated rural areas has • been heard and Barwon Health has received funding for a dental van to deliver dental services to Lorne, Apollo Bay and surrounding towns in the second half of 2013.

The GP Clinic continues to support the Urgent Care Unit that, despite funding issues, • has remained open all hours for urgent presentations.

Needs assessments are completed and health data is collected in the development of • the five-year Service Plan that is approved by the State Department of Health. Australian Bureau of Statistics and population health data is utilised in the development of health promotion programs.


deveLoping and enCouraging STRaTEgIC RElaTIONShIpS Otway Health is now midway through its strategic plan with its definitive objective on ‘Working together for a healthy community’.

The following areas have been addressed in the last financial year

dElIVER hEalTh aNd COMMuNITy SERVICES IN paRTNERShIp wITh OThER SERVICE pROVIdERS TO MaxIMISE aCCESS TO hEalTh SERVICES:

Focus on excellence in service provision

Work with partner agencies to enhance service coverage

Target health services to the disadvantaged to improve health outcomes

Improve access to oral health services

Sustain a 24/7 Urgent Care Unit

Establish a process to review current services against population needs

The quality system has been improved to encourage every program area to be involved • in quality improvement developments and implementation

The risk system has been reviewed and a proactive process for identifying and • addressing risk in all areas is now in place.

The Volunteer Coordinator, working with the Occupational Therapist has trained • volunteers to provide residents with appropriate hand massage treatments on a regular basis

The mentoring project, in its fourth year, has once again commenced under the • stewardship of Otway Health in partnership with the Apollo Bay P-12 College.

Services are now outreaching to Lavers Hill, Forrest and Wye River which has received • clinical support and health checks to assist members of the local CFA gym. Otway Health is assisting the Neighbourhood House network to develop recovery plans in the event of a natural disaster with $100,000 funding for a special ‘Fire Ready’ project at the Forrest Neighbourhood House.

A social support worker at Otway Health provides emergency relief and support to • disadvantaged people in supported accommodation. Otway Health has successfully tendered for $29,000 from Barwon Medicare Local for the delivery of an ATAPS program (Access to Allied Psychological Support – Indigenous). The project plan has been devised in partnership with a local indigenous corporation and local private psychologist.

The advocacy for access to private and public dental services to isolated rural areas has • been heard and Barwon Health has received funding for a dental van to deliver dental services to Lorne, Apollo Bay and surrounding towns in the second half of 2013.

The GP Clinic continues to support the Urgent Care Unit that, despite funding issues, • has remained open all hours for urgent presentations.

Needs assessments are completed and health data is collected in the development of • the five-year Service Plan that is approved by the State Department of Health. Australian Bureau of Statistics and population health data is utilised in the development of health promotion programs.


TO INfORM aNd ENgagE ThE COMMuNITy appROpRIaTEly TO ENhaNCE aNd pROMOTE hEalTh aNd wEllBEINg:

Increase community engagement

Consult with consumers about services

Support community initiatives that improve health outcomes Develop effective mechanisms to converse with the community Build community capacity to make informed decisions about their health

An Open Board Meeting was held in April 2013 and community members joined the • meeting online and contributed questions and comments. The use of social media is enabling Otway Health to consult and provide information to a greater audience.

The Consumer Reference Group has been established so that Otway Health can learn • from the consumers’ experience and improve the services to better meet their needs.

The Otway Health Board has chosen to support the Aquatic Centre Committees work • in advocating for an indoor heated pool for Apollo Bay. The Colac Otway Shire has committed to providing ongoing running costs once the pool is constructed.

The Otway Health News has effectively communicated health information and articles • to the broader community increasing coverage. Social media is extending the number of people who can contribute to the dialogue with Otway Health on a range of community and health issues.

In the last financial year the Health Promotion aspects of Otway Health’s work have • grown significantly. This is in part due to the well qualified and talented personnel, but also due the partnerships with Colac Area Health and Colac Otway Shire. The priority areas for this work include; improving active transport options, increasing food security, improving leisure options for young people, and, decreasing rates and burdens of chronic disease.

BuIld ThE RESOuRCE CapaCITy; wORKfORCE, fuNdINg aNd INfRaSTRuCTuRE TO dElIVER ThE SERVICES NOw aNd IN ThE fuTuRE:

Identify and meet capital needs for the future

Build the workforce capacity to meet future needs Knowledge capital is retained and shared

Build a positive and constructive work culture

Improve return on investment for information technology

Improve client outcomes using information technology solutions

Capital development has been a major focus with the purchase of land adjacent to the • main site, the extension of the library and neighbourhood house, the renovation and repair to the Barham Wing. Future developments include the development of a new staff car park, the gym and eventually a second storey to accommodate a growing staff group.

Our international immigration program has brought cultural diversity and valuable • nursing skills to Otway Health as well as affording us full staffing, despite our isolation.

Otway Health has a staff induction program, succession plans, documented handovers • and individual work plans in place, as well as an extensive central file and document control system to enable staff to access organisational documents whenever required.

Staff team work has been a focus this year, supported by: nurses planning and debriefing • workshops, stress and positive communication workshops for all staff and the activities of the positive workplace group to engage staff with each other across divisions.

As a mandated member of the South West Alliance, the cost of information technology • remains out of our control. However, responses have been made to the Alliance Review and the Ministers review indicating that IT costs are an issue to be addressed.

The video link in the Urgent Care Unit with Barwon Health Emergency Department is a • significant development which can now be used for clinical training as well as secondary consultation for doctors.


TO INfORM aNd ENgagE ThE COMMuNITy appROpRIaTEly TO ENhaNCE aNd pROMOTE hEalTh aNd wEllBEINg:

Increase community engagement

Consult with consumers about services

Support community initiatives that improve health outcomes Develop effective mechanisms to converse with the community Build community capacity to make informed decisions about their health

An Open Board Meeting was held in April 2013 and community members joined the • meeting online and contributed questions and comments. The use of social media is enabling Otway Health to consult and provide information to a greater audience.

The Consumer Reference Group has been established so that Otway Health can learn • from the consumers’ experience and improve the services to better meet their needs.

The Otway Health Board has chosen to support the Aquatic Centre Committees work • in advocating for an indoor heated pool for Apollo Bay. The Colac Otway Shire has committed to providing ongoing running costs once the pool is constructed.

The Otway Health News has effectively communicated health information and articles • to the broader community increasing coverage. Social media is extending the number of people who can contribute to the dialogue with Otway Health on a range of community and health issues.

In the last financial year the Health Promotion aspects of Otway Health’s work have • grown significantly. This is in part due to the well qualified and talented personnel, but also due the partnerships with Colac Area Health and Colac Otway Shire. The priority areas for this work include; improving active transport options, increasing food security, improving leisure options for young people, and, decreasing rates and burdens of chronic disease.

BuIld ThE RESOuRCE CapaCITy; wORKfORCE, fuNdINg aNd INfRaSTRuCTuRE TO dElIVER ThE SERVICES NOw aNd IN ThE fuTuRE:

Identify and meet capital needs for the future

Build the workforce capacity to meet future needs Knowledge capital is retained and shared

Build a positive and constructive work culture

Improve return on investment for information technology

Improve client outcomes using information technology solutions

Capital development has been a major focus with the purchase of land adjacent to the • main site, the extension of the library and neighbourhood house, the renovation and repair to the Barham Wing. Future developments include the development of a new staff car park, the gym and eventually a second storey to accommodate a growing staff group.

Our international immigration program has brought cultural diversity and valuable • nursing skills to Otway Health as well as affording us full staffing, despite our isolation.

Otway Health has a staff induction program, succession plans, documented handovers • and individual work plans in place, as well as an extensive central file and document control system to enable staff to access organisational documents whenever required.

Staff team work has been a focus this year, supported by: nurses planning and debriefing • workshops, stress and positive communication workshops for all staff and the activities of the positive workplace group to engage staff with each other across divisions.

As a mandated member of the South West Alliance, the cost of information technology • remains out of our control. However, responses have been made to the Alliance Review and the Ministers review indicating that IT costs are an issue to be addressed.

The video link in the Urgent Care Unit with Barwon Health Emergency Department is a • significant development which can now be used for clinical training as well as secondary consultation for doctors.


pROVIdE STRONg, TRaNSpaRENT aNd aCCOuNTaBlE gOVERNaNCE aNd lEadERShIp:

The Board will have access to appropriate organisational information to make informed decisions Board members will maximise training and networking opportunities Ensure Board performance meets good governance standards

Ensure quality and risk meets accreditation standards and legislative requirements

Ensure commercial viability utilising sound financial decisions

The Board receives extensive data and reports • at each monthly meeting and from the Board committees. Information is distributed between meetings by email.

The Board members attend annual training in • governance.

The Board assesses its own performance at the • end of each financial year. The AGM provides an opportunity for Board members to report on governance performance to the community.

The quality system has been reviewed and is • co-ordinated to ensure work plans are created with strategies designed to meet standards and legislative requirements. These work plans are reported bi monthly to the Quality Improvement Committee and further reported to the Board.

The Board monitors financial matters in detail at • the Finance, Audit and Risk Committee and every monthly Board meeting to ensure sound financial management.

Through its committee system, the Board reviews the various policies and functions. The Board’s interaction with, and confidence in our CEO, is critical to the smooth and effective running of our facility. The Board and the CEO‘s ongoing collaborative relationship is to the amelioration of Otway Health.

Through the recommendations of the Finance, Audit and Risk Committee and the Capital Works Committee, one property was purchased for future development, initially as car parking space for the new gym, the new library and Marrar Woorn Neighbourhood House. These committees are to consider the use of bequests to the best advantage and the refurbishment of the old Ambulance Station into a community gym.

The Board Selection Committee approved the application of two new Board members to be sent to Department of Health and the Governor in Council for approval. The two new members will significantly add to the expertise and skills mix of our Board.

This past year saw the Board training in finance and governance as a group learning experience. The relationship between governance and management is less of a mystery now but continual education is necessary, not only in the more traditional areas, but in the use of social media to the betterment of our organisation. Board members are volunteers who give freely of their time and do a wonderful job. Discussions for interaction through a community access group are on the agenda.

2012 – 2013 BOaRd Of gOVERNaNCE

Our current Board of seven members approaches its governance responsibilities seriously.


pROVIdE STRONg, TRaNSpaRENT aNd aCCOuNTaBlE gOVERNaNCE aNd lEadERShIp:

The Board will have access to appropriate organisational information to make informed decisions Board members will maximise training and networking opportunities Ensure Board performance meets good governance standards

Ensure quality and risk meets accreditation standards and legislative requirements

Ensure commercial viability utilising sound financial decisions

The Board receives extensive data and reports • at each monthly meeting and from the Board committees. Information is distributed between meetings by email.

The Board members attend annual training in • governance.

The Board assesses its own performance at the • end of each financial year. The AGM provides an opportunity for Board members to report on governance performance to the community.

The quality system has been reviewed and is • co-ordinated to ensure work plans are created with strategies designed to meet standards and legislative requirements. These work plans are reported bi monthly to the Quality Improvement Committee and further reported to the Board.

The Board monitors financial matters in detail at • the Finance, Audit and Risk Committee and every monthly Board meeting to ensure sound financial management.

Through its committee system, the Board reviews the various policies and functions. The Board’s interaction with, and confidence in our CEO, is critical to the smooth and effective running of our facility. The Board and the CEO‘s ongoing collaborative relationship is to the amelioration of Otway Health.

Through the recommendations of the Finance, Audit and Risk Committee and the Capital Works Committee, one property was purchased for future development, initially as car parking space for the new gym, the new library and Marrar Woorn Neighbourhood House. These committees are to consider the use of bequests to the best advantage and the refurbishment of the old Ambulance Station into a community gym.

The Board Selection Committee approved the application of two new Board members to be sent to Department of Health and the Governor in Council for approval. The two new members will significantly add to the expertise and skills mix of our Board.

This past year saw the Board training in finance and governance as a group learning experience. The relationship between governance and management is less of a mystery now but continual education is necessary, not only in the more traditional areas, but in the use of social media to the betterment of our organisation. Board members are volunteers who give freely of their time and do a wonderful job. Discussions for interaction through a community access group are on the agenda.

2012 – 2013 BOaRd Of gOVERNaNCE

Our current Board of seven members approaches its governance responsibilities seriously.


NaME pOSITION daTE Of COMMENCEMENTPeter Hagan President June 2007 – OngoingNina Brooks 1st Vice President July 2009 – OngoingSisca Verwoert 2nd Vice President August 2007 – OngoingDenise Hooke Board Member August 2007 – OngoingLorraine Harris Board Member July 2011 – OngoingDenise McLachlan Board Member July 2011 – OngoingRussell Dawe Board Member July 2011 – Ongoing

ExECuTIVE COMMITTEE Peter Hagan – President• Nina Brooks – 1st Vice President• Sisca Verwoert – 2nd Vice President•

fINaNCE, audIT aNd RISK COMMITTEE

Denise Hooke - Chairperson• Peter Hagan – President• Lorraine Harris – Board Member• Russell Dawe – Board Member• Denise McLachlan – Board Member• Ian Richardson – Community Member •

CEO MaNagEMENT Nina Brooks – Chairperson• Peter Hagan – President• Lorraine Harris – Board Member •

CapITal wORKS Lorraine Harris – Chairperson• Peter Hagan – President (ex-officio)• Sisca Verwoert – 2nd Vice President• Russell Dawe – Board Member• Denise McLachlan – Board Member •

BOaRd SElECTION paNEl

Peter Hagan – Chairperson• Nina Brooks – 1st Vice President• Denise McLachlan – Board Member•

Employees are treated fairly and with respect and are encouraged to contribute to an environment that is free of discrimination, harassment and bullying.

ExECuTIVE MaNagEMENT TEaMThe Management Team is responsible for operational performance in accordance with the Strategic and Service plans.

Chief Executive Officer Linda West

Manager Clinical Care Doris Hamilton (until 22/7/12) Gail Palmer (from 17/9/12)

Manager Community Services Max Broadley

Manager Corporate Services Helen Healy

organisationaL STRuCTuREOtway Health is committed to the principles of merit and equity in the workplace with respect to employment, promotion and opportunity as per the Victorian Public Sector Employees Code of Conduct.


NaME pOSITION daTE Of COMMENCEMENTPeter Hagan President June 2007 – OngoingNina Brooks 1st Vice President July 2009 – OngoingSisca Verwoert 2nd Vice President August 2007 – OngoingDenise Hooke Board Member August 2007 – OngoingLorraine Harris Board Member July 2011 – OngoingDenise McLachlan Board Member July 2011 – OngoingRussell Dawe Board Member July 2011 – Ongoing

ExECuTIVE COMMITTEE Peter Hagan – President• Nina Brooks – 1st Vice President• Sisca Verwoert – 2nd Vice President•

fINaNCE, audIT aNd RISK COMMITTEE

Denise Hooke - Chairperson• Peter Hagan – President• Lorraine Harris – Board Member• Russell Dawe – Board Member• Denise McLachlan – Board Member• Ian Richardson – Community Member •

CEO MaNagEMENT Nina Brooks – Chairperson• Peter Hagan – President• Lorraine Harris – Board Member •

CapITal wORKS Lorraine Harris – Chairperson• Peter Hagan – President (ex-officio)• Sisca Verwoert – 2nd Vice President• Russell Dawe – Board Member• Denise McLachlan – Board Member •

BOaRd SElECTION paNEl

Peter Hagan – Chairperson• Nina Brooks – 1st Vice President• Denise McLachlan – Board Member•

Employees are treated fairly and with respect and are encouraged to contribute to an environment that is free of discrimination, harassment and bullying.

ExECuTIVE MaNagEMENT TEaMThe Management Team is responsible for operational performance in accordance with the Strategic and Service plans.

Chief Executive Officer Linda West

Manager Clinical Care Doris Hamilton (until 22/7/12) Gail Palmer (from 17/9/12)

Manager Community Services Max Broadley

Manager Corporate Services Helen Healy

organisationaL STRuCTuREOtway Health is committed to the principles of merit and equity in the workplace with respect to employment, promotion and opportunity as per the Victorian Public Sector Employees Code of Conduct.


Accountant

Finance Officer

Human Resources Co-ordinator

Records Clerks

Quality Officer

Administration Assistants

Customer Services Officers

Public Relations and Fundraising Officer

MAINTENANCE MANAGER

Maintenance AssistantVolunteer Gardeners

Apollo Bay General Practice

GP’s contracted to Urgent Care Unit

AFTER HOURS CO-ORDINATORS

NURSE UNIT MANAGERAssociate Nurse Unit Managers

Division One Nurses

Enrolled NursesPersonal Care

Attendants

Activity Assistants

Beauty Therapy

Ward Clerk

Volunteer Activity Assistants

Volunteer Friend in Hand Massage

Volunteer Visitors

CATERING OFFICERCooks

Kitchen Assistant

PRIMARY HEALTH CARE TEAM

Community Nurse

Physiotherapist

Occupational Therapist

Community Health Nurse

Maternal Child Health Nurse

Health Promotions Officer

Allied Health Assistants

Advanced Care Planning

Project Nurse

Community Welfare Worker

Volunteer Bus Drivers

HOME AND

COMMUNITY CARE CO-ORDINATOR

HACC Admin AssistantsHome Carers

Volunteer Co-ordinator

PAG Co-ordinator

PAG Assistants

Volunteer PAG AssistantsVolunteer Meal Delivery

Volunteer Pet Carer

CHILD CARE CENTRE CO-ORDINATOR

Child Carers

Child Care Assistants

Volunteer Child Care Assistants

Second Sails Co-ordinator

Volunteer Shop Assistants

Youth TeamYouth Workers

NEIGHBOURHOOD HOUSES

Marrar Woorn Neighbourhood House

Co-ordinator

Forrest Neighbourhood House Co-ordinator

Lavers Hill & District Neighbourhood House

Co-ordinator

Volunteer Neighbourhood House

Assistants

MANAGER CORPORAte SeRViCeS

MANAGER CLINICAL CARE

MANAGER COMMUnity SeRViCeS

CHIEF ExECUTIVE OFFICER ExECuTIVE ASSISTANT

BOARD


Accountant

Finance Officer

Human Resources Co-ordinator

Records Clerks

Quality Officer

Administration Assistants

Customer Services Officers

Public Relations and Fundraising Officer

MAINTENANCE MANAGER

Maintenance AssistantVolunteer Gardeners

Apollo Bay General Practice

GP’s contracted to Urgent Care Unit

AFTER HOURS CO-ORDINATORS

NURSE UNIT MANAGERAssociate Nurse Unit Managers

Division One Nurses

Enrolled NursesPersonal Care

Attendants

Activity Assistants

Beauty Therapy

Ward Clerk

Volunteer Activity Assistants

Volunteer Friend in Hand Massage

Volunteer Visitors

CATERING OFFICERCooks

Kitchen Assistant

PRIMARY HEALTH CARE TEAM

Community Nurse

Physiotherapist

Occupational Therapist

Community Health Nurse

Maternal Child Health Nurse

Health Promotions Officer

Allied Health Assistants

Advanced Care Planning

Project Nurse

Community Welfare Worker

Volunteer Bus Drivers

HOME AND

COMMUNITY CARE CO-ORDINATOR

HACC Admin AssistantsHome Carers

Volunteer Co-ordinator

PAG Co-ordinator

PAG Assistants

Volunteer PAG AssistantsVolunteer Meal Delivery

Volunteer Pet Carer

CHILD CARE CENTRE CO-ORDINATOR

Child Carers

Child Care Assistants

Volunteer Child Care Assistants

Second Sails Co-ordinator

Volunteer Shop Assistants

Youth TeamYouth Workers

NEIGHBOURHOOD HOUSES

Marrar Woorn Neighbourhood House

Co-ordinator

Forrest Neighbourhood House Co-ordinator

Lavers Hill & District Neighbourhood House

Co-ordinator

Volunteer Neighbourhood House

Assistants

MANAGER CORPORAte SeRViCeS

MANAGER CLINICAL CARE

MANAGER COMMUnity SeRViCeS

CHIEF ExECUTIVE OFFICER ExECuTIVE ASSISTANT

BOARD


CORpORaTE SERVICESKim BazellBilly Bryant Kerry Bubica Gail DarlingAndrea DepplerShelly Forche BairdGeorgina Harrison Helen HealySarah LaneKatrina Kiely Christine McKenzieAmber NosedaLeanne RochfordBill ShieldsHarry Smith Jessica Van SantenLinda West

COMMuNITy SERVICESJosie AhearnJosie BarrCheryl BiddleGillian BrewMarni BriffaMax Broadley Brian Brown Jan Browne Tanja BrunnerBelinda Campbell Diana CarterNadia CookMichelle CoxRhiannon Cox Polly DayJocelyn DexterJessica Dorney Diane EarlLouise Fairney Brooke Garrett Sue Harrison Wendy Hart Kate Hedrick - Wagstaff Meloney HowellCaryl Hughes Loren Jenkins Karen JordanKirsty King Pam LittleDarryan LoRicco Julia Malcolm Shirley Mason

Katrina McKellar Nikki McMullen Ann MissenDonna O’Meara Anne Rout Marie SinclairElizabeth SmithLisa Smith Shona Smith Jenny WattJohn Weiser Hiroko Yamamura

ClINICal CaRERita Abraham Lorraine BiddleBarbara Birkett Nitch Bovinah Cheddee Michele BrewElda Bubica Bebs BuchananMarlie CouttsJesse Craddock Rachael Darling Claire DavisArie De LeeuwNicholas De Leeuw Aldo Del RosarioJack Fillmore Michelle FillmoreJay Flannagan Sue FrydmanHelen GarnerTania GaylardNieka GeekieMarcia Gleeson Kevin Gorman Amy Gullock Lyn HarrisonAngela Hergstrom Evan HillLynette HortonVicki HughesGenevieve Kleindienst Judith LawlerSally Mactaggart Maria Martinez Rose McBride Monique Melis-CooperAlexandra MontagueMarie MurnaneHayley NewmanGail Palmer

Anna Parij-Smith Lyndsey PetherickWarren Powell Angely RamchandaniTikiri Ranaweera Dorothy Riches Toni RookeBernadine Sheetz Rosemarie StoeckliJenny TurnbullJennifer Whitwell Kay Wilson

THOSE WHO LEFT US 2012 / 2013

CORpORaTE SERVICESPinki Tokas

ClINICal CaREDeclan Armstrong Hayley Forrest Doris Hamilton Fern Heland Marita KennedyFern Rainbow Kara Robbins Deb Tovey Susan Townsend Zhezhi Zhang

COMMuNITy SERVICESMichelle Boyd Helen Davis Sophie Ellis Jess Lees Janice Livesey Karen Holdsworth (dec’d)Sheila Johnson Stella Moraitopoulos Andrew Poor Lauren Poor Brenda Ray Abbey Roberts Sarah Rookes Kate Sculley Phil Townsend

staff bY department aS aT 30 JuNE 2013


CORpORaTE SERVICESKim BazellBilly Bryant Kerry Bubica Gail DarlingAndrea DepplerShelly Forche BairdGeorgina Harrison Helen HealySarah LaneKatrina Kiely Christine McKenzieAmber NosedaLeanne RochfordBill ShieldsHarry Smith Jessica Van SantenLinda West

COMMuNITy SERVICESJosie AhearnJosie BarrCheryl BiddleGillian BrewMarni BriffaMax Broadley Brian Brown Jan Browne Tanja BrunnerBelinda Campbell Diana CarterNadia CookMichelle CoxRhiannon Cox Polly DayJocelyn DexterJessica Dorney Diane EarlLouise Fairney Brooke Garrett Sue Harrison Wendy Hart Kate Hedrick - Wagstaff Meloney HowellCaryl Hughes Loren Jenkins Karen JordanKirsty King Pam LittleDarryan LoRicco Julia Malcolm Shirley Mason

Katrina McKellar Nikki McMullen Ann MissenDonna O’Meara Anne Rout Marie SinclairElizabeth SmithLisa Smith Shona Smith Jenny WattJohn Weiser Hiroko Yamamura

ClINICal CaRERita Abraham Lorraine BiddleBarbara Birkett Nitch Bovinah Cheddee Michele BrewElda Bubica Bebs BuchananMarlie CouttsJesse Craddock Rachael Darling Claire DavisArie De LeeuwNicholas De Leeuw Aldo Del RosarioJack Fillmore Michelle FillmoreJay Flannagan Sue FrydmanHelen GarnerTania GaylardNieka GeekieMarcia Gleeson Kevin Gorman Amy Gullock Lyn HarrisonAngela Hergstrom Evan HillLynette HortonVicki HughesGenevieve Kleindienst Judith LawlerSally Mactaggart Maria Martinez Rose McBride Monique Melis-CooperAlexandra MontagueMarie MurnaneHayley NewmanGail Palmer

Anna Parij-Smith Lyndsey PetherickWarren Powell Angely RamchandaniTikiri Ranaweera Dorothy Riches Toni RookeBernadine Sheetz Rosemarie StoeckliJenny TurnbullJennifer Whitwell Kay Wilson

THOSE WHO LEFT US 2012 / 2013

CORpORaTE SERVICESPinki Tokas

ClINICal CaREDeclan Armstrong Hayley Forrest Doris Hamilton Fern Heland Marita KennedyFern Rainbow Kara Robbins Deb Tovey Susan Townsend Zhezhi Zhang

COMMuNITy SERVICESMichelle Boyd Helen Davis Sophie Ellis Jess Lees Janice Livesey Karen Holdsworth (dec’d)Sheila Johnson Stella Moraitopoulos Andrew Poor Lauren Poor Brenda Ray Abbey Roberts Sarah Rookes Kate Sculley Phil Townsend

staff bY department aS aT 30 JuNE 2013


WorKforCe daTalaBOuR CaTEgORy JuNE CuRRENT MONTh fTE JuNE yTd fTE

Year 2013 2012 2013 2012

nursing 18.91 20.05 19.92 19.55Administration and Clerical 14.00 13.36 14.02 12.64Medical Support 3.99 9.80 5.08 9.43Hotel and Allied Services 16.44 15.38 15.99 15.21Ancillary Support 7.79 3.70 8.07 3.44

Public Sector Values and Employment Principles have been incorporated in Otway Health’s intensive employee orientation program. Otway Health is an Equal Opportunity Employer and our employment decisions are founded on merit and equity.

oCCupationaL hEalTh & SafETy

The Occupational Health and Safety [OH&S] Committee is one of the largest committees at to Otway Health, comprising of nine staff including the Chief Executive Officer. The nine staff represent different designated working groups in the organisation. The OH&S committee oversees risk identification and management, hazard identification and management, emergency plans, OH&S policies and procedures, quality improvements and OH&S training.

As part of Otway Health’s commitment to create a ‘Safety First’ culture in the last 12 months, the OH&S committee has:

Launched a new campaign called “BEE Safe”, which • includes a publication issued to staff bi-monthly,Taken on the monitoring of all OH&S training • including: Emergency Systems, Hand Hygiene, Bullying and Harassment, Food Safety and Manual Handling,

Implemented compulsory onsite manual handling • for all staff due to it having been identified as a high risk area for staff, andWorked on other safety improvements such as: • fire warden training (6 monthly), fire extinguisher training and also increasing awareness of health and safety in the workplace.

All incident reporting is captured in ‘RiskMan’, an electronic database that allows staff to utilise a central point to report incidents, hazards and community feedback and quality improvements. Intrinsic to this system’s effectiveness is the need to report incidents and implement controls to prevent similar incidents from reoccurring. All incidents are reported to the Board and monitored by the OH&S Committee.

In total, 51 incidents have been reported for the 2012/13 financial year, 47 for the 2011/2012 financial year and 23 for the 2010/2011 financial year. An increase in reporting of incidents is due to an expanded workforce, a focus on health and safety and greater understanding and knowledge of RiskMan.

Otway Health is committed to providing a safe and healthy workplace and focuses on a ‘Safety First’ culture.


WorKforCe daTalaBOuR CaTEgORy JuNE CuRRENT MONTh fTE JuNE yTd fTE

Year 2013 2012 2013 2012

nursing 18.91 20.05 19.92 19.55Administration and Clerical 14.00 13.36 14.02 12.64Medical Support 3.99 9.80 5.08 9.43Hotel and Allied Services 16.44 15.38 15.99 15.21Ancillary Support 7.79 3.70 8.07 3.44

Public Sector Values and Employment Principles have been incorporated in Otway Health’s intensive employee orientation program. Otway Health is an Equal Opportunity Employer and our employment decisions are founded on merit and equity.

oCCupationaL hEalTh & SafETy

The Occupational Health and Safety [OH&S] Committee is one of the largest committees at to Otway Health, comprising of nine staff including the Chief Executive Officer. The nine staff represent different designated working groups in the organisation. The OH&S committee oversees risk identification and management, hazard identification and management, emergency plans, OH&S policies and procedures, quality improvements and OH&S training.

As part of Otway Health’s commitment to create a ‘Safety First’ culture in the last 12 months, the OH&S committee has:

Launched a new campaign called “BEE Safe”, which • includes a publication issued to staff bi-monthly,Taken on the monitoring of all OH&S training • including: Emergency Systems, Hand Hygiene, Bullying and Harassment, Food Safety and Manual Handling,

Implemented compulsory onsite manual handling • for all staff due to it having been identified as a high risk area for staff, andWorked on other safety improvements such as: • fire warden training (6 monthly), fire extinguisher training and also increasing awareness of health and safety in the workplace.

All incident reporting is captured in ‘RiskMan’, an electronic database that allows staff to utilise a central point to report incidents, hazards and community feedback and quality improvements. Intrinsic to this system’s effectiveness is the need to report incidents and implement controls to prevent similar incidents from reoccurring. All incidents are reported to the Board and monitored by the OH&S Committee.

In total, 51 incidents have been reported for the 2012/13 financial year, 47 for the 2011/2012 financial year and 23 for the 2010/2011 financial year. An increase in reporting of incidents is due to an expanded workforce, a focus on health and safety and greater understanding and knowledge of RiskMan.

Otway Health is committed to providing a safe and healthy workplace and focuses on a ‘Safety First’ culture.


ClINICal CaREUrgent Care 24/7Acute CareAids and Equipment HireDay Respite CareFood Services ProgramNeedle Exchange ProgramNurse ClinicPalliative Care

agEd CaREResidential Aged CareResidential Respite CareSea Mist Villas

COMMuNITy SERVICESAdvocacy, Counselling & Support ServicesAfter School CareCentrelink AgencyChild Care CentreChild ImmunisationColac Area Health Drug & Alcohol SupportCommunity NursingCommunity WelfareChronic Disease ManagementCommunity TransportDelivered MealsEmergency ReliefExercise ClassesForrest Neighbourhood HouseGrief and Bereavement SupportHealth PromotionHome and Community CareLavers Hill and District Community HouseMarrar Woorn Neighbourhood HouseMaternal & Child Health NurseMaternity ServicesOccupational Therapy

Parenting InformationProperty MaintenancePlanned Activities GroupPhysiotherapySecond Sails Opportunity Shop SupportSenior Citizens Centre SupportVolunteer CoordinationVisiting Services

- Australian Hearing- Financial Counselling- Eye Care 2 You- Podiatry

Youth Development WorkYouth Club

CORpORaTE SERVICESAuditsAdministrationAsset ManagementBuildings and GroundsCleaningFinancial ManagementFundraisingGovernance SupportHuman Resources ManagementInformation TechnologyInformation ManagementInfrastructure MaintenanceOccupational Health and SafetyPublic RelationsQuality ImprovementRisk Management

serviCes to our COMMuNITy


ClINICal CaREUrgent Care 24/7Acute CareAids and Equipment HireDay Respite CareFood Services ProgramNeedle Exchange ProgramNurse ClinicPalliative Care

agEd CaREResidential Aged CareResidential Respite CareSea Mist Villas

COMMuNITy SERVICESAdvocacy, Counselling & Support ServicesAfter School CareCentrelink AgencyChild Care CentreChild ImmunisationColac Area Health Drug & Alcohol SupportCommunity NursingCommunity WelfareChronic Disease ManagementCommunity TransportDelivered MealsEmergency ReliefExercise ClassesForrest Neighbourhood HouseGrief and Bereavement SupportHealth PromotionHome and Community CareLavers Hill and District Community HouseMarrar Woorn Neighbourhood HouseMaternal & Child Health NurseMaternity ServicesOccupational Therapy

Parenting InformationProperty MaintenancePlanned Activities GroupPhysiotherapySecond Sails Opportunity Shop SupportSenior Citizens Centre SupportVolunteer CoordinationVisiting Services

- Australian Hearing- Financial Counselling- Eye Care 2 You- Podiatry

Youth Development WorkYouth Club

CORpORaTE SERVICESAuditsAdministrationAsset ManagementBuildings and GroundsCleaningFinancial ManagementFundraisingGovernance SupportHuman Resources ManagementInformation TechnologyInformation ManagementInfrastructure MaintenanceOccupational Health and SafetyPublic RelationsQuality ImprovementRisk Management

serviCes to our COMMuNITy


aREa 2012/ 2013

2011/ 2012

Community Welfare

Occasions of Service 807 960

Hours of Counselling 634.5 731

emergency Relief 129 102

Average Assistance Provided $64.93 $63.33

number of Clients 195 102

Assessment Services

Case Conferences with GP 8 3

Case Conferences without GP 50 21

Planned Activity Group

Hours of Client Contact 4284 4758


Community Nursing


number of Hours 1218 452

CentrelinkOccasions of Service 613 674

Child Care

number of Children Attending 60 61

eFt Childrens' Places 16.6 14.1

aREa 2012/ 2013

2011/ 2012

Physiotherapy


Maternity Services



Hours of Service Provided 98 62

Home and Community Care

Home & Personal Care Clients 170 179

Home & Personal Care Hours 3902 3619

Delivered Meals 2491 3264

Occupational Therapy


Clinical Care

nurse/Wound Care 128 101

Radiology 115 73

Urgent Care Presentations 907 896

Acute Admissions 78/643 89/427

needle exchange 1803 1900

Respite Aged Care 274 340

High Level Residential Aged Care 1540 2550

Low Level Residential Aged Care 4520 4792

CLient paRTICIpaTION


aREa 2012/ 2013

2011/ 2012

Community Welfare


Hours of Counselling 634.5 731

emergency Relief 129 102

Average Assistance Provided $64.93 $63.33


Assessment Services

Case Conferences with GP 8 3

Case Conferences without GP 50 21

Planned Activity Group

Hours of Client Contact 4284 4758


Community Nursing


number of Hours 1218 452

CentrelinkOccasions of Service 613 674

Child Care

number of Children Attending 60 61

eFt Childrens' Places 16.6 14.1

aREa 2012/ 2013

2011/ 2012

Physiotherapy


Maternity Services



Hours of Service Provided 98 62

Home and Community Care

Home & Personal Care Clients 170 179

Home & Personal Care Hours 3902 3619

Delivered Meals 2491 3264

Occupational Therapy


Clinical Care

nurse/Wound Care 128 101

Radiology 115 73

Urgent Care Presentations 907 896

Acute Admissions 78/643 89/427

needle exchange 1803 1900

Respite Aged Care 274 340

High Level Residential Aged Care 1540 2550

Low Level Residential Aged Care 4520 4792

CLient paRTICIpaTION


WINSTON CHURCHILL

Otway Health like many other Health Services utilises the generous and skilled services of its many dedicated volunteers. Our volunteers make an enormous difference to our community in such a positive and authentic way. The most recent addition to our Volunteer Program is ‘Friend In Hand’. This team of six dedicated volunteers participated in a number of training sessions in 2012 to learn how to provide gentle hand washing and massage. This team now offers hand massage on a weekly basis to our aged care residents as part of the activities program and also offer regular hand massage to participants in our Planned Activities Group program. This is an important volunteering activity as we know that muscle atrophy effects people as they age.

Our active volunteers care about the greater community and put this into action by delivering meals to those in our community who need the extra support, through to being creative and committed through all seasons to upkeep our beautiful on site garden and grounds. Many of our volunteers also contribute hours to other essential services around town. We are proud of our volunteers and see them as one of our greatest assets. Our number of active volunteers in service, on a monthly basis including Forrest and Lavers Hill ranges from 150 - 155.

Our Seconds Sails Opportunity Shop which is led by one part-time staff member and a team of volunteers continue to impress with their fundraising skills. Under the guidance of Otway Health, they continue to raise the bar on a yearly basis. The previous financial year came in at an impressive $172,500.

The Board of Otway Health would like to take this opportunity to sincerely thank all of its supporters for their continued assistance and generosity which assists the organisation immensely.

dONaTIONS RECEIVEd duRINg ThE 2012-2013 yEaR:

Anonymous Benefactors• Apollo Bay & District Community Bank• Apollo Bay & District Health Foundation• Caribou Publications P/L• Catholic Ladies Guild of Apollo Bay• Georgina Andreadakis• Stephen Hart• Yvonne McCredie•

our NEIghBOuRhOOd

“We make a living by what we get, but we make a life by what we give.”


WINSTON CHURCHILL

Otway Health like many other Health Services utilises the generous and skilled services of its many dedicated volunteers. Our volunteers make an enormous difference to our community in such a positive and authentic way. The most recent addition to our Volunteer Program is ‘Friend In Hand’. This team of six dedicated volunteers participated in a number of training sessions in 2012 to learn how to provide gentle hand washing and massage. This team now offers hand massage on a weekly basis to our aged care residents as part of the activities program and also offer regular hand massage to participants in our Planned Activities Group program. This is an important volunteering activity as we know that muscle atrophy effects people as they age.

Our active volunteers care about the greater community and put this into action by delivering meals to those in our community who need the extra support, through to being creative and committed through all seasons to upkeep our beautiful on site garden and grounds. Many of our volunteers also contribute hours to other essential services around town. We are proud of our volunteers and see them as one of our greatest assets. Our number of active volunteers in service, on a monthly basis including Forrest and Lavers Hill ranges from 150 - 155.

Our Seconds Sails Opportunity Shop which is led by one part-time staff member and a team of volunteers continue to impress with their fundraising skills. Under the guidance of Otway Health, they continue to raise the bar on a yearly basis. The previous financial year came in at an impressive $172,500.

The Board of Otway Health would like to take this opportunity to sincerely thank all of its supporters for their continued assistance and generosity which assists the organisation immensely.

dONaTIONS RECEIVEd duRINg ThE 2012-2013 yEaR:

Anonymous Benefactors• Apollo Bay & District Community Bank• Apollo Bay & District Health Foundation• Caribou Publications P/L• Catholic Ladies Guild of Apollo Bay• Georgina Andreadakis• Stephen Hart• Yvonne McCredie•

our NEIghBOuRhOOd

“We make a living by what we get, but we make a life by what we give.”


statutorY CompLianCe REquIREMENTSINCORpORaTIONOtway Health & Community Services is incorporated as a multi-purpose service by the Health Services Act 1988 (Vic) and is capable of doing and suffering all acts and things which bodies corporate may by law do or suffer. OBJECTIVESThe objectives of the Service are to:

operate a multi-purpose service as authorised by 1. the Act;provide public hospital services to the 2. community;provide aged care services to the community;3. provide community health, health promotion and 4. education to the community;provide community support and development 5. services to the community;provide high quality services to the community 6. which aim to meet community needs effectively and efficiently;integrate care across service boundaries in order 7. achieve continuity of care and promote the most appropriate level of care to meet the needs of individuals;ensure that health services are aimed at 8. improvements in individual health outcomes and population health status by allocating resources according to best practice health care approaches;

ensure that the Service strives to continuously 9. improve quality and foster innovation;support a broad range of high quality health 10. research to contribute to new knowledge and to take advantage of knowledge gained elsewhere;operate in a business-like manner which 11. maximises efficiency, effectiveness and cost effectiveness and ensures the financial viability of the Service;ensure that mechanisms are available to inform 12. consumers and protect their rights and to facilitate consultation with the community; andcarry out any other activities that may be 13. conveniently carried out in connection with the operation of a multi-purpose service or calculated to make more efficient any of the Service’s assets or activities.

COMplaINTS REpORTSIn 2012/2013 there were no complaints made to the Office of the Health Services Commissioner.

CONSulTaNCIES OVER aNd uNdER $10,000In 2012/2013 there was one consultancy in excess of $10,000. There have been 3 consultancies for less than $10,000 totalling $12,040.00 Total expenditure to the consultancies was $26,740.00

CONSulTaNCy COSTS 2012-2013

Date Period Supplier Line Description <$10k >$10k

30/09/2012 Sep-12 Kim Stephens & Associates Consultancy Services for Captains Management Retreat June 2012

2,740.00

28/02/2013 Feb-13 Therese Cain Risk Management Oct-Jan 6,300.00

30/04/2013 Apr-13 Davidsons Accountants Internal Audit of Board Governance 3,000.00

12/05/2013 May-13 LEHR Consultants Tender documents & plans for the new staff room

14,700.00


statutorY CompLianCe REquIREMENTSINCORpORaTIONOtway Health & Community Services is incorporated as a multi-purpose service by the Health Services Act 1988 (Vic) and is capable of doing and suffering all acts and things which bodies corporate may by law do or suffer. OBJECTIVESThe objectives of the Service are to:

operate a multi-purpose service as authorised by 1. the Act;provide public hospital services to the 2. community;provide aged care services to the community;3. provide community health, health promotion and 4. education to the community;provide community support and development 5. services to the community;provide high quality services to the community 6. which aim to meet community needs effectively and efficiently;integrate care across service boundaries in order 7. achieve continuity of care and promote the most appropriate level of care to meet the needs of individuals;ensure that health services are aimed at 8. improvements in individual health outcomes and population health status by allocating resources according to best practice health care approaches;

ensure that the Service strives to continuously 9. improve quality and foster innovation;support a broad range of high quality health 10. research to contribute to new knowledge and to take advantage of knowledge gained elsewhere;operate in a business-like manner which 11. maximises efficiency, effectiveness and cost effectiveness and ensures the financial viability of the Service;ensure that mechanisms are available to inform 12. consumers and protect their rights and to facilitate consultation with the community; andcarry out any other activities that may be 13. conveniently carried out in connection with the operation of a multi-purpose service or calculated to make more efficient any of the Service’s assets or activities.

COMplaINTS REpORTSIn 2012/2013 there were no complaints made to the Office of the Health Services Commissioner.

CONSulTaNCIES OVER aNd uNdER $10,000In 2012/2013 there was one consultancy in excess of $10,000. There have been 3 consultancies for less than $10,000 totalling $12,040.00 Total expenditure to the consultancies was $26,740.00

CONSulTaNCy COSTS 2012-2013

Date Period Supplier Line Description <$10k >$10k

30/09/2012 Sep-12 Kim Stephens & Associates Consultancy Services for Captains Management Retreat June 2012

2,740.00

28/02/2013 Feb-13 Therese Cain Risk Management Oct-Jan 6,300.00

30/04/2013 Apr-13 Davidsons Accountants Internal Audit of Board Governance 3,000.00

12/05/2013 May-13 LEHR Consultants Tender documents & plans for the new staff room

14,700.00


BuIldINg aCT 1993In accordance with Good Building Principles and Practices’ Agencies are required to regularly carry out assessments and reports on the condition of built assets. Otway Health has complied with all government requirements to ensure that all built assets are maintained and protected.

daTa aCCuRaCyI, Linda West, certify that Otway Health & Community Services has put in place appropriate internal control and processes to ensure that reported data reasonably reflects actual performance. Otway Health & Community Services has critically reviewed these controls and processes during the year.

Linda WestChief Executive Officer/Accountable Officer

fREEdOM Of INfORMaTION The Freedom of Information Act 1982 provides the right for members of the public to obtain information held by Otway Health. These requests under the Act are made in writing to the Principle Officer who is the Manager of Corporate Services. The Manager of Corporate Services is also the Authorised Officer. Fifteen requests have been processed under the Act during 2012/2013, 13 granted in full, 1 withdrawn & 1 still in process.

fINaNCIal MaNagEMENT COMplIaNCE fRaMEwORKOtway Health maintained 100% compliance against all Standing Directions of the Financial Management Compliance Framework during 2012/2013.

auSTRalIaN/NEw ZEalaNd RISK MaNagEMENT STaNdaRdI, Linda West certify that Otway Health has Risk Management processes in place consistent with the

Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Audit Committee verifies this assurance and that the risk profile of Otway Health has been critically reviewed within the last 12 months.


NaTIONal COMpETITION pOlICyDuring 2012/2013 Otway Health has complied to the degree applicable with National Competition Policy including the Competitive Neutrality Policy Victoria and subsequent reforms. Payroll, accountancy, and cleaning services have been externally contracted. These contracts have continued in the 2012/2013 financial year.

VICTORIaN INduSTRy paRTICIpaTION pOlICyIn accordance with the Victorian Industry Participation Policy Act 2003, Otway Health is required to report on the implementation of the Victorian Industry Participation Policy (VIPP). During 2012/2013 there have been no tenders let or completed with a value greater than $1 million.

pRudENTIal COMplIaNCESome Aged Care Residents have paid either an entry contribution or an accommodation bond when they commenced residency at Otway Health. As such Otway Health has an obligation to complete an audited Annual Prudential Compliance return. Otway Health was found to be fully compliant and held an average of $186,000 in combined entry contributions and accommodation bonds during 2012/2013.


BuIldINg aCT 1993In accordance with Good Building Principles and Practices’ Agencies are required to regularly carry out assessments and reports on the condition of built assets. Otway Health has complied with all government requirements to ensure that all built assets are maintained and protected.

daTa aCCuRaCyI, Linda West, certify that Otway Health & Community Services has put in place appropriate internal control and processes to ensure that reported data reasonably reflects actual performance. Otway Health & Community Services has critically reviewed these controls and processes during the year.


fREEdOM Of INfORMaTION The Freedom of Information Act 1982 provides the right for members of the public to obtain information held by Otway Health. These requests under the Act are made in writing to the Principle Officer who is the Manager of Corporate Services. The Manager of Corporate Services is also the Authorised Officer. Fifteen requests have been processed under the Act during 2012/2013, 13 granted in full, 1 withdrawn & 1 still in process.

fINaNCIal MaNagEMENT COMplIaNCE fRaMEwORKOtway Health maintained 100% compliance against all Standing Directions of the Financial Management Compliance Framework during 2012/2013.

auSTRalIaN/NEw ZEalaNd RISK MaNagEMENT STaNdaRdI, Linda West certify that Otway Health has Risk Management processes in place consistent with the

Australian/New Zealand Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Audit Committee verifies this assurance and that the risk profile of Otway Health has been critically reviewed within the last 12 months.


NaTIONal COMpETITION pOlICyDuring 2012/2013 Otway Health has complied to the degree applicable with National Competition Policy including the Competitive Neutrality Policy Victoria and subsequent reforms. Payroll, accountancy, and cleaning services have been externally contracted. These contracts have continued in the 2012/2013 financial year.

VICTORIaN INduSTRy paRTICIpaTION pOlICyIn accordance with the Victorian Industry Participation Policy Act 2003, Otway Health is required to report on the implementation of the Victorian Industry Participation Policy (VIPP). During 2012/2013 there have been no tenders let or completed with a value greater than $1 million.

pRudENTIal COMplIaNCESome Aged Care Residents have paid either an entry contribution or an accommodation bond when they commenced residency at Otway Health. As such Otway Health has an obligation to complete an audited Annual Prudential Compliance return. Otway Health was found to be fully compliant and held an average of $186,000 in combined entry contributions and accommodation bonds during 2012/2013.


RESpONSIBlE MINISTERSOtway Health has a joint agreement with both the Commonwealth and Victorian Governments. We are accountable to the Commonwealth and Victorian Governments for the efficiency and integrity of our operations and the quality of the services we provide.

Federal Minister for Health and Minister for Medical Research The Hon Tanya Plibersek MP

Federal Minister for Mental Health and Ageing Senator The Hon Jacinta Collins

Federal Minister for Indigenous Health The Hon Warren Snowdon MP

State Minister for Health and Minister for Ageing The Hon David Davis MP

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

A statement of pecuniary interest has been • completed;Details of shares held by senior officers as • nominees 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 the Health Service;Details of any major external reviews carried out • on the Health Service;Details of major research and development • activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations;Details of overseas visits undertaken including a • summary of the objectives and outcomes of each visit;Details of major promotional, public relations and • marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services;Details of assessments and measures undertaken • to improve the occupational health and safety of employees;General statement on industrial relations • within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations; A list of major committees sponsored by the • Health Service, the purposes of each committee and the extent to which those purposes have been achieved;Details of all consultancies and contractors • including consultants/contractors engaged, services provided, and expenditure committed for each engagement.


RESpONSIBlE MINISTERSOtway Health has a joint agreement with both the Commonwealth and Victorian Governments. We are accountable to the Commonwealth and Victorian Governments for the efficiency and integrity of our operations and the quality of the services we provide.

Federal Minister for Health and Minister for Medical Research The Hon Tanya Plibersek MP

Federal Minister for Mental Health and Ageing Senator The Hon Jacinta Collins

Federal Minister for Indigenous Health The Hon Warren Snowdon MP

State Minister for Health and Minister for Ageing The Hon David Davis MP

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

A statement of pecuniary interest has been • completed;Details of shares held by senior officers as • nominees 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 the Health Service;Details of any major external reviews carried out • on the Health Service;Details of major research and development • activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations;Details of overseas visits undertaken including a • summary of the objectives and outcomes of each visit;Details of major promotional, public relations and • marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services;Details of assessments and measures undertaken • to improve the occupational health and safety of employees;General statement on industrial relations • within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations; A list of major committees sponsored by the • Health Service, the purposes of each committee and the extent to which those purposes have been achieved;Details of all consultancies and contractors • including consultants/contractors engaged, services provided, and expenditure committed for each engagement.


Otway Health & Community Services has experienced a challenging year in many ways. An opportunity arose to do minor repairs and renovations to some areas due to the flood and these were funded from our reserves.We were successful in obtaining a $ 100,000.00 Aged Care Minor Capital grant and an additional $229,000.00 Capital Grant from the Department of Health. These funds will be fully expended in 2013/2014

on a building project, new bus with an electronic hoist, numerous pieces of equipment and other identified capital needs. We have continued to increase our services to the community, identifying and responding to their changing needs and to support our staff in various aspects of training and professional developmet.

We will return a minor deficit for 2012/2013 but look forward to a profitable 2013/2014.

finanCes aT wORK

2012/2013 INCOME By CaTEgORy 2013 2012

Government Grants 4,538,876 4,527,592Other income 987,843 701,401Patient and Resident Fees 454,243 480,477Interest 214,043 271,541Capital Purpose Income 712,244 297,612

2012/2013 ExpENdITuRE By CaTEgORy 2013 2012

employee Benefits 4,615,134 4,234,014Fee for Service Medical Officers 29,996 188,925

Supplies and Consumables 428,510 211,603Other expenses 1,170,339 1,070,598Depreciation 421,230 419,053

dEBTORS OuTSTaNdINg aS aT 30Th JuNE 2013 < 30 Days

$31-60 Days

$61-90 Days

$> 90 Days

$2012

Total $2013

Total $Private 2,603 3,528 2,603transport Accident Commission - -Victorian Workcover Authority - -Other Compensable 22,918 1,506 19,004 24,424Psychiatric - -Nursing Home 14,199 245 1,078 1,855 7,431 17,377

Total 39,720 245 2,584 1,855 29,963 44,404 dEBTORS OuTSTaNdINg aS aT 30Th JuNE 2013

2013 2012 2011 2010 2009

Total Revenue 6,907,249 6,278,623 6,766,097 5,940,621 6,236,387Total Expenses 6,665,209 6,124,193 6,879,901 5,902,101 5,231,214Net Result for the Year (incl. Capital and Specific Items) 242,040 154,430 -113,804 38,520 1,005,173

Retained Surplus/(Accumulated Deficit) 4,560,679 4,318,639 4,164,209 4,278,013 4,238,112Total Assets 15,087,574 15,281,555 14,260,487 14,155,200 14,606,157Total Liabilities 3,430,194 3,866,215 2,999,577 2,780,486 3,269,963Net Assets 11,657,380 11,415,340 11,260,910 11,374,714 11,336,194Equity 11,657,380 11,415,340 11,260,910 11,374,714 11,336,194


Otway Health & Community Services has experienced a challenging year in many ways. An opportunity arose to do minor repairs and renovations to some areas due to the flood and these were funded from our reserves.We were successful in obtaining a $ 100,000.00 Aged Care Minor Capital grant and an additional $229,000.00 Capital Grant from the Department of Health. These funds will be fully expended in 2013/2014

on a building project, new bus with an electronic hoist, numerous pieces of equipment and other identified capital needs. We have continued to increase our services to the community, identifying and responding to their changing needs and to support our staff in various aspects of training and professional developmet.

We will return a minor deficit for 2012/2013 but look forward to a profitable 2013/2014.

finanCes aT wORK

2012/2013 INCOME By CaTEgORy 2013 2012

Government Grants 4,538,876 4,527,592Other income 987,843 701,401Patient and Resident Fees 454,243 480,477Interest 214,043 271,541Capital Purpose Income 712,244 297,612

2012/2013 ExpENdITuRE By CaTEgORy 2013 2012

employee Benefits 4,615,134 4,234,014Fee for Service Medical Officers 29,996 188,925

Supplies and Consumables 428,510 211,603Other expenses 1,170,339 1,070,598Depreciation 421,230 419,053

dEBTORS OuTSTaNdINg aS aT 30Th JuNE 2013 < 30 Days

$31-60 Days

$61-90 Days

$> 90 Days

$2012

Total $2013

Total $Private 2,603 3,528 2,603transport Accident Commission - -Victorian Workcover Authority - -Other Compensable 22,918 1,506 19,004 24,424Psychiatric - -Nursing Home 14,199 245 1,078 1,855 7,431 17,377

Total 39,720 245 2,584 1,855 29,963 44,404 dEBTORS OuTSTaNdINg aS aT 30Th JuNE 2013

2013 2012 2011 2010 2009

Total Revenue 6,907,249 6,278,623 6,766,097 5,940,621 6,236,387Total Expenses 6,665,209 6,124,193 6,879,901 5,902,101 5,231,214Net Result for the Year (incl. Capital and Specific Items) 242,040 154,430 -113,804 38,520 1,005,173

Retained Surplus/(Accumulated Deficit) 4,560,679 4,318,639 4,164,209 4,278,013 4,238,112Total Assets 15,087,574 15,281,555 14,260,487 14,155,200 14,606,157Total Liabilities 3,430,194 3,866,215 2,999,577 2,780,486 3,269,963Net Assets 11,657,380 11,415,340 11,260,910 11,374,714 11,336,194Equity 11,657,380 11,415,340 11,260,910 11,374,714 11,336,194


disCLosure INdExThe annual report of Otway Health & Community Services is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

lEgISlaTION REquIREMENT pagE REf #

Ministerial Directions

REPORT OF OPERATIONS

Charter and purposeFRD 22C Manner of establishment and the relevant Ministers 19FRD 22C Objectives, functions, powers and duties 6,9FRD 22C Nature and range of services provided 14

Management and structureFRD 22C Organisational structure 11

Financial and other informationFRD 10 Disclosure index 21,22FRD 11 Disclosure of ex gratia payments N/AFRD 15B Executive officer disclosures Financials 29FRD 21B Responsible person and executive officer disclosures Financials 29FRD 22C Application and operation of Freedom of Information Act 1982 18FRD 22C Compliance with building and maintenance provisions of Building Act 1993 18FRD 22C Details of consultancies over $10,000 17FRD 22C Details of consultancies under $10,000 17FRD 22C Major changes or factors affecting performance N/AFRD 22C Occupational health and safety 13FRD 22C Operational and budgetary objectives and performance against objectives N/AFRD 22C Significant changes in financial position during the year N/AFRD 22C Statement of availability of other information 19FRD 22C Statement on National Competition Policy 18FRD 22C Subsequent events Financials 29FRD 22C Summary of the financial results for the year 20FRD 22C Workforce Data Disclosures including a statement on the application of

employment and conduct principles 13

FRD 25A Victorian Industry Participation Policy disclosures 18SD 4.2(j) Sign-off requirements 18


disCLosure INdExThe annual report of Otway Health & Community Services is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.


Ministerial Directions

REPORT OF OPERATIONS

Charter and purposeFRD 22C Manner of establishment and the relevant Ministers 19FRD 22C Objectives, functions, powers and duties 6,9FRD 22C Nature and range of services provided 14

Management and structureFRD 22C Organisational structure 11

Financial and other informationFRD 10 Disclosure index 21,22FRD 11 Disclosure of ex gratia payments N/AFRD 15B Executive officer disclosures Financials 29FRD 21B Responsible person and executive officer disclosures Financials 29FRD 22C Application and operation of Freedom of Information Act 1982 18FRD 22C Compliance with building and maintenance provisions of Building Act 1993 18FRD 22C Details of consultancies over $10,000 17FRD 22C Details of consultancies under $10,000 17FRD 22C Major changes or factors affecting performance N/AFRD 22C Occupational health and safety 13FRD 22C Operational and budgetary objectives and performance against objectives N/AFRD 22C Significant changes in financial position during the year N/AFRD 22C Statement of availability of other information 19FRD 22C Statement on National Competition Policy 18FRD 22C Subsequent events Financials 29FRD 22C Summary of the financial results for the year 20FRD 22C Workforce Data Disclosures including a statement on the application of

employment and conduct principles 13

FRD 25A Victorian Industry Participation Policy disclosures 18SD 4.2(j) Sign-off requirements 18



Financial and other information cont.SD 3.4.13 Attestation on data integrity 18SD 4.5.5.1 Attestation on data insurance 18SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management

Standard 18

FINANCIAL STATEMENTS

Financial statements required under Part 7 of the FMA

SD 4.2(a) Statement of changes in equity Financials 4SD 4.2(b) Comprehensive operating statement Financials 2SD 4.2(b) Balance sheet Financials 3SD 4.2(b) Cash flow statement Financials 5

Other requirements under Standing Directions 4.2

SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements

Financials 7

SD 4.2(c) Accountable officer’s declaration Financials 1SD 4.2(c) Compliance with Ministerial Directions Financials 1SD 4.2(d) Rounding of amounts Financials 15

Legislation

Freedom of information Act 1982 18Victorian industry Participation Policy Act 2003 18Building Act 1993 18Financial Management Act 1994 1



Financial and other information cont.SD 3.4.13 Attestation on data integrity 18SD 4.5.5.1 Attestation on data insurance 18SD 4.5.5 Attestation on Compliance with Australian/New Zealand Risk Management

Standard 18

FINANCIAL STATEMENTS

Financial statements required under Part 7 of the FMA

SD 4.2(a) Statement of changes in equity Financials 4SD 4.2(b) Comprehensive operating statement Financials 2SD 4.2(b) Balance sheet Financials 3SD 4.2(b) Cash flow statement Financials 5

Other requirements under Standing Directions 4.2

SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements

Financials 7

SD 4.2(c) Accountable officer’s declaration Financials 1SD 4.2(c) Compliance with Ministerial Directions Financials 1SD 4.2(d) Rounding of amounts Financials 15

Legislation

Freedom of information Act 1982 18Victorian industry Participation Policy Act 2003 18Building Act 1993 18Financial Management Act 1994 1


OTWAY HEALTH & COMMUNITY SERVICESFINANCIAL REPORT 2012 - 2013

OTWAY HEALTH & COMMUNITY SERVICESFINANCIAL REPORT 2012 - 2013

FINANCIAL REPORT 2012 - 2013FINANCIAL REPORT 2012 - 2013

1 Otway Health & Community Services Financial Report 2012 - 2013 1 Otway Health & Community Services Financial Report 2012 - 2013

2Otway Health & Community Services Financial Report 2012 - 2013

Note 2013 2012

$ $

Revenue from Operating Activities 2 5,918,765 5,626,464

Revenue from Non-operating Activities 2 296,240 354,547

Employee Expenses 3 (4,615,134) (4,234,014)

Non Salary Labour Costs 3 (175,260) (188,925)

Supplies & Consumables 3 (191,684) (211,603)

SWARH other expenses from jointly controlled assets 3 (263,732) (231,260)

Other Expenses 3 (998,168) (839,338)

Share of net result of Joint Ventures Accounted for

using the Equity Method 8 185 -

Net Result Before Capital & Specific Items (28,788) 275,871

Capital Purpose Income 2 712,244 297,612

Depreciation and Amortisation 4 (421,230) (419,053)

NET RESULT FOR THE YEAR 262,226 154,430

COMPREHENSIVE RESULT 262,226 154,430

OTWAY HEALTH AND COMMUNITY SERVICES

COMPREHENSIVE OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

This statement should be read in conjunction with the accompanying notes Page 2


Note 2013 2012

$ $

Revenue from Operating Activities 2 5,918,765 5,626,464

Revenue from Non-operating Activities 2 296,240 354,547

Employee Expenses 3 (4,615,134) (4,234,014)

Non Salary Labour Costs 3 (175,260) (188,925)

Supplies & Consumables 3 (191,684) (211,603)

SWARH other expenses from jointly controlled assets 3 (263,732) (231,260)

Other Expenses 3 (998,168) (839,338)


using the Equity Method 8 185 -

Net Result Before Capital & Specific Items (28,788) 275,871

Capital Purpose Income 2 712,244 297,612

Depreciation and Amortisation 4 (421,230) (419,053)

NET RESULT FOR THE YEAR 262,226 154,430

COMPREHENSIVE RESULT 262,226 154,430


COMPREHENSIVE OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

This statement should be read in conjunction with the accompanying notes Page 2

3 Otway Health & Community Services Financial Report 2012 - 2013


BALANCE SHEET AS AT 30 JUNE 2013

Note 2013 2012

$ $

ASSETS

Current Assets

Cash and Cash Equivalents 5 383,663 244,977

Receivables 6 558,340 423,024

Investments and other Financial Assets 7 3,962,826 5,212,031

Prepayments 15,636 4,987

Total Current Assets 4,920,465 5,885,019

Non-Current Assets

Investments Accounted for using the Equity Method 8 15,185 -

Property, Plant & Equipment 9 10,172,109 9,396,536

Total Non-Current Assets 10,187,294 9,396,536

TOTAL ASSETS 15,107,759 15,281,555

LIABILITIES

Current Liabilities

Payables 10 416,117 247,322

Provisions 11 734,803 726,782

Other Liabilities 12 2,041,801 2,684,789

Total Current Liabilities 3,192,721 3,658,893

Non-Current Liabilities

Provisions 11 237,473 207,322

Total Non-Current Liabilities 237,473 207,322

TOTAL LIABILITIES 3,430,194 3,866,215

NET ASSETS 11,677,565 11,415,340

EQUITY

Property, Plant & Equipment Asset Revaluation Reserve 13 (a) 2,618,828 2,618,828

Asset Replacement Reserve 13 (a) 185,902 185,902

Restricted Specific Purpose Reserve 13 (a) 504,427 504,427

Contributed Capital 13 (b) 3,787,544 3,787,544

Accumulated Surpluses 13 (c) 4,580,864 4,318,639

TOTAL EQUITY 13 11,677,565 11,415,340

Contingent Liabilities and Contingent Assets 16

Commitments for Expenditure 15

This statement should be read in conjuction with the accompanying notes Page 3



BALANCE SHEET AS AT 30 JUNE 2013

Note 2013 2012

$ $

ASSETS

Current Assets

Cash and Cash Equivalents 5 383,663 244,977

Receivables 6 558,340 423,024

Investments and other Financial Assets 7 3,962,826 5,212,031

Prepayments 15,636 4,987

Total Current Assets 4,920,465 5,885,019

Non-Current Assets

Investments Accounted for using the Equity Method 8 15,185 -

Property, Plant & Equipment 9 10,172,109 9,396,536

Total Non-Current Assets 10,187,294 9,396,536

TOTAL ASSETS 15,107,759 15,281,555

LIABILITIES

Current Liabilities

Payables 10 416,117 247,322

Provisions 11 734,803 726,782

Other Liabilities 12 2,041,801 2,684,789

Total Current Liabilities 3,192,721 3,658,893

Non-Current Liabilities

Provisions 11 237,473 207,322

Total Non-Current Liabilities 237,473 207,322

TOTAL LIABILITIES 3,430,194 3,866,215

NET ASSETS 11,677,565 11,415,340

EQUITY

Property, Plant & Equipment Asset Revaluation Reserve 13 (a) 2,618,828 2,618,828

Asset Replacement Reserve 13 (a) 185,902 185,902

Restricted Specific Purpose Reserve 13 (a) 504,427 504,427

Contributed Capital 13 (b) 3,787,544 3,787,544

Accumulated Surpluses 13 (c) 4,580,864 4,318,639

TOTAL EQUITY 13 11,677,565 11,415,340

Contingent Liabilities and Contingent Assets 16

Commitments for Expenditure 15

This statement should be read in conjuction with the accompanying notes Page 3


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013

Note

Plant &

Equipment

Revaluation

Surplus

Restricted

Purpose

Reserves

Asset

Replacement

Reserves

Contribution by

Owners

Accumulated

Surplus / (Deficits) Total

$ $ $ $ $ $

Balance at 1 July 2011 2,618,828 504,427 185,902 3,787,544 4,164,209 11,260,910

Net Result for the year - - - - 154,430 154,430

Balance at 30 June 2012 13 2,618,828 504,427 185,902 3,787,544 4,318,639 11,415,340


Balance at 30 June 2013 13 2,618,828 504,427 185,902 3,787,544 4,580,865 11,677,566


This statements shuld be read in conjunction with the accompanying notes Page 4


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013

Note

Plant &

Equipment

Revaluation

Surplus

Restricted

Purpose

Reserves

Asset

Replacement

Reserves

Contribution by

Owners

Accumulated

Surplus / (Deficits) Total

$ $ $ $ $ $

Balance at 1 July 2011 2,618,828 504,427 185,902 3,787,544 4,164,209 11,260,910


Balance at 30 June 2012 13 2,618,828 504,427 185,902 3,787,544 4,318,639 11,415,340


Balance at 30 June 2013 13 2,618,828 504,427 185,902 3,787,544 4,580,865 11,677,566


This statements shuld be read in conjunction with the accompanying notes Page 4


Note 2013 2012

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 4,619,415 4,609,787

Patient and Resident Fees Received 300,172 481,434

Donations & Bequests Received 189,540 22,942

Interest Received 260,122 257,721

Other Receipts 808,881 759,114

GST received from/(paid to) ATO 112,896 112,896

Employee Expenses Paid (4,576,962) (4,175,572)

Non Salary Labour Costs (175,260) (188,925)

Payments for Supplies & Consumables (191,684) (211,603)

Other Payments (1,322,367) (1,228,700)

Cash Generated from Operations 24,753 439,094

Capital Grants from Government 241,400 14,000

Capital Donations and Bequests Received 7,276 251,066

NET CASH INFLOW FROM OPERATING ACTIVITIES 14 273,429 704,160

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment (791,624) (214,312)

Proceeds from Sale of Property, Plant & Equipment 65,665 25,873

Payments for Purchase of Investments (15,000) (508,475)

Proceeds from Sale of Investments 606,217 -

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (134,742) (696,914)

NET INCREASE/(DECREASE) IN CASH HELD 138,687 7,246

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 244,977 237,731

CASH AND CASH EQUIVALENTS AT END OF YEAR 5 383,664 244,977


CASHFLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

This Statement should be read in conjunction with the accompanying notes Page 5


Note 2013 2012

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Operating Grants from Government 4,619,415 4,609,787

Patient and Resident Fees Received 300,172 481,434

Donations & Bequests Received 189,540 22,942

Interest Received 260,122 257,721

Other Receipts 808,881 759,114

GST received from/(paid to) ATO 112,896 112,896

Employee Expenses Paid (4,576,962) (4,175,572)

Non Salary Labour Costs (175,260) (188,925)

Payments for Supplies & Consumables (191,684) (211,603)

Other Payments (1,322,367) (1,228,700)

Cash Generated from Operations 24,753 439,094

Capital Grants from Government 241,400 14,000

Capital Donations and Bequests Received 7,276 251,066

NET CASH INFLOW FROM OPERATING ACTIVITIES 14 273,429 704,160

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property, Plant & Equipment (791,624) (214,312)

Proceeds from Sale of Property, Plant & Equipment 65,665 25,873

Payments for Purchase of Investments (15,000) (508,475)

Proceeds from Sale of Investments 606,217 -

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (134,742) (696,914)

NET INCREASE/(DECREASE) IN CASH HELD 138,687 7,246

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 244,977 237,731

CASH AND CASH EQUIVALENTS AT END OF YEAR 5 383,664 244,977


CASHFLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

This Statement should be read in conjunction with the accompanying notes Page 5



NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2013

Contents

Note Page

1 Statement of Significant Accounting Policies 7

2 Revenue 18

2a Patient and Resident Fees 18

2b Net Gain/(Loss) on Disposal of Non-Current Assets 19

3 Analysis of Expense 19

4 Depreciation 20

5 Cash and Cash Equivalents 20

6 Receivables 20

7 Other Financial Assets 20

8 Investments Accounted for using the Equity Method 21

9 Property, Plant & Equipment 21

10 Payables 22

11 Provisions 22

12 Other Liabilities 23

13 Equity 23

14 Reconciliation of Net Result for the Year to Net

Cash Inflow from Operating Activities 23

15 Commitments 23

16 Contingent Assets & Contingent Liabilities 24

17 Financial Instruments 24

18 Jointly Controlled Operations and Assets 28

19a Responsible Persons Disclosures 29

19b Executive Officer Disclosures 29

20 Events Occurring after the Balance Sheet Date 29

Page 6





Contents

Note Page

1 Statement of Significant Accounting Policies 7

2 Revenue 18

2a Patient and Resident Fees 18

2b Net Gain/(Loss) on Disposal of Non-Current Assets 19

3 Analysis of Expense 19

4 Depreciation 20

5 Cash and Cash Equivalents 20

6 Receivables 20

7 Other Financial Assets 20

8 Investments Accounted for using the Equity Method 21

9 Property, Plant & Equipment 21

10 Payables 22

11 Provisions 22

12 Other Liabilities 23

13 Equity 23

14 Reconciliation of Net Result for the Year to Net

Cash Inflow from Operating Activities 23

15 Commitments 23

16 Contingent Assets & Contingent Liabilities 24

17 Financial Instruments 24

18 Jointly Controlled Operations and Assets 28

19a Responsible Persons Disclosures 29

19b Executive Officer Disclosures 29

20 Events Occurring after the Balance Sheet Date 29

Page 6





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance

The annual financial statements were authorised for issue by the Board of the Health Service on August 28, 2013

(b) Basis of accounting preparation & measurement

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

•

•

•

•

•

•

(c) Reporting Entity

The financial statements include all the controlled activities of the Otway Health and Community Services.

Its principle address is:

75 McLachlan Street

Apollo Bay VIC 3233

The presentation currency of the Health Service is the Australian dollar, which has also been identified as the functional 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:

Available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is

derecognised.

In the application of AAS's management is required to make judgments, 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 historical experience

and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the

judgements. 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 made by management in the application of AASs that have significant

effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period relate to:

These financial statements are general purpose financial statements which have been prepared in accordance with the Financial

Management Act 1994 and applicable AASs, which include interpretations issued by the Australian Accounting Standards Board (AASB).

They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.

The financial statements also complies with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and

Finance , and relevant Standing Directions (SDs) authorised by the Minister for Finance.

The Health Service is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” entities under

the AAS's.

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 2013, and the

comparative information presented in these financial statements for the year ended 30 June 2012.

A description of the nature of Otway Health & Community Service's operations and its principal activities is included in

the report of operations, which does not form part of these financial statements.

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.

These annual financial statements represent the audited general purpose financial statements for Otway Health and Community Services for

the period ending 30 June 2013. The purpose of the report is to provide users with information about the Health Services' stewardship of

resources entrusted to it.

the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(i))

superannuration expense (refer to Note 1(g))

assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary

movements and future discount rates (refer to Note 1(j))

Non-current physical assets, which subsequent to acquisition, are measured at valuation and are re-assessed with

sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;

Page 7





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of Compliance

The annual financial statements were authorised for issue by the Board of the Health Service on August 28, 2013

(b) Basis of accounting preparation & measurement

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

•

•

•

•

•

•

(c) Reporting Entity

The financial statements include all the controlled activities of the Otway Health and Community Services.

Its principle address is:

75 McLachlan Street

Apollo Bay VIC 3233

The presentation currency of the Health Service is the Australian dollar, which has also been identified as the functional 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:

Available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is

derecognised.

In the application of AAS's management is required to make judgments, 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 historical experience

and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the

judgements. 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 made by management in the application of AASs that have significant

effects on the financial statements and estimates, with a risk of material adjustments in the subsequent reporting period relate to:

These financial statements are general purpose financial statements which have been prepared in accordance with the Financial

Management Act 1994 and applicable AASs, which include interpretations issued by the Australian Accounting Standards Board (AASB).

They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.

The financial statements also complies with relevant Financial Reporting Directions (FRDs) issued by the Department of Treasury and

Finance , and relevant Standing Directions (SDs) authorised by the Minister for Finance.

The Health Service is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to “not-for-profit” entities under

the AAS's.

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 2013, and the

comparative information presented in these financial statements for the year ended 30 June 2012.

A description of the nature of Otway Health & Community Service's operations and its principal activities is included in

the report of operations, which does not form part of these financial statements.

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.

These annual financial statements represent the audited general purpose financial statements for Otway Health and Community Services for

the period ending 30 June 2013. The purpose of the report is to provide users with information about the Health Services' stewardship of

resources entrusted to it.

the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 1(i))

superannuration expense (refer to Note 1(g))

assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary

movements and future discount rates (refer to Note 1(j))

Non-current physical assets, which subsequent to acquisition, are measured at valuation and are re-assessed with

sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;

Page 7





NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(d) Jointly Controlled Assets

(e) Scope and Presentation of Financial Statements

Fund Accounting

Comprehensive operating statement

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 or plant and equipment. It also includes donations of plant and equipment.

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:

- Voluntary departure packages

- Non-Current asset revaluation increments/decrements

• Depreciation and amortisation, as described in note 1 (g)

• Assets provided or received free of charge (refer to Note 1 (f))

• 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

Statement of changes in equity

Cash flow statement

(f) Income recognition

The Health Service operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds.

Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in

respect of these funds.

The activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of

Health and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital

and Community Initiatives (H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth.

• Impairment of financial and non-financial assets including all impairment losses (and reversal of previous

impairment losses) which have been recognised in accordance with Note 1 (i).

Revenue is recognised in accordance with AASB 118 Revenue and is recognised as to the extent it is probable that the economic

benefits will flow to the Health Service and the income can be reliably measured. 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.

Services Supported by Health Services Agreement and Services Supported by Hospital and Community

Initiatives

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.

The Comprehensive Operating Statement includes the subtotal entitled 'Net Result Before Capital & Specific Items' to enhance the

understanding of the financial performance of the Health Service. This subtotal reports the result excluding such items as capital grants,

assets received or provided free of charge, depreciation, and items of unusual nature and amount such as specific revenues and

expenses. The exclusion of these items are made to enhance matching of income and expenses so as to facilitate the comparability and

consistency of results between years and Victorian Public Health Services. The 'Net result before Capital & Specific Items' is used by the

management of the Health Service, the Department of Health and the Victorian Government to measure the ongoing performance of

Health Services in operating hospital services.

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 related to other non-owner changes in equity.

Interests in jointly controlled assets or operations are not consolidated by Otway Health and Community Services but are accounted for in

accordance with the policy outlined in Note 1(j) financial assets.

Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be

recovered/settled more that 12 months after reporting period), are disclosed in the notes where relevant.

Page 8






(d) Jointly Controlled Assets

(e) Scope and Presentation of Financial Statements

Fund Accounting

Comprehensive operating statement

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 or plant and equipment. It also includes donations of plant and equipment.

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:

- Voluntary departure packages

- Non-Current asset revaluation increments/decrements

• Depreciation and amortisation, as described in note 1 (g)

• Assets provided or received free of charge (refer to Note 1 (f))

• 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

Statement of changes in equity

Cash flow statement

(f) Income recognition

The Health Service operates on a fund accounting basis and maintains three funds: Operating, Specific Purpose and Capital Funds.

Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in

respect of these funds.

The activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of

Health and are also funded from other sources such as the Commonwealth, patients and residents, while Services Supported by Hospital

and Community Initiatives (H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth.

• Impairment of financial and non-financial assets including all impairment losses (and reversal of previous

impairment losses) which have been recognised in accordance with Note 1 (i).

Revenue is recognised in accordance with AASB 118 Revenue and is recognised as to the extent it is probable that the economic

benefits will flow to the Health Service and the income can be reliably measured. 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.

Services Supported by Health Services Agreement and Services Supported by Hospital and Community

Initiatives

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.

The Comprehensive Operating Statement includes the subtotal entitled 'Net Result Before Capital & Specific Items' to enhance the

understanding of the financial performance of the Health Service. This subtotal reports the result excluding such items as capital grants,

assets received or provided free of charge, depreciation, and items of unusual nature and amount such as specific revenues and

expenses. The exclusion of these items are made to enhance matching of income and expenses so as to facilitate the comparability and

consistency of results between years and Victorian Public Health Services. The 'Net result before Capital & Specific Items' is used by the

management of the Health Service, the Department of Health and the Victorian Government to measure the ongoing performance of

Health Services in operating hospital services.

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 related to other non-owner changes in equity.

Interests in jointly controlled assets or operations are not consolidated by Otway Health and Community Services but are accounted for in

accordance with the policy outlined in Note 1(j) financial assets.

Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be

recovered/settled more that 12 months after reporting period), are disclosed in the notes where relevant.

Page 8






(f) Income recognition (continued)

Government Grants and other transfers of income (other than contributions by owners)

Indirect Contributions

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

Donations and Bequests

Interest Revenue

Sale of investments

The gain/loss on the sale of investments is recognised when the investment is realised.

Resources Provided and Received Free of Charge or for Nominal Consideration

(g) Expense Recognition

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

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 plans

Defined benefit 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.

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset.

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.

In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are

recognised as income when the Health Service gains control of the underlying assets irrespective of whether conditions are imposed on

the Health Service’s use of the contributions.

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 liability in line with the arrangements set out in

the Metropolitan Health and Aged Care Services Division Hospital Circular 14/2009.

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 reserve.

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

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

Resources provided or received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains

control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from

another 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 services would have been purchased if not donated.

The amount charged to the Comprehensive Operating Statement in respect of defined benefit superannuation plans represents the

contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff during the

reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based on actuarial

advice.

Page 9






(f) Income recognition (continued)

Government Grants and other transfers of income (other than contributions by owners)

Indirect Contributions

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

Donations and Bequests

Interest Revenue

Sale of investments

The gain/loss on the sale of investments is recognised when the investment is realised.

Resources Provided and Received Free of Charge or for Nominal Consideration

(g) Expense Recognition

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

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 plans

Defined benefit 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.

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield of the financial asset.

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.

In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are

recognised as income when the Health Service gains control of the underlying assets irrespective of whether conditions are imposed on

the Health Service’s use of the contributions.

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 liability in line with the arrangements set out in

the Metropolitan Health and Aged Care Services Division Hospital Circular 14/2009.

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 reserve.

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

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

Resources provided or received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains

control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from

another 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 services would have been purchased if not donated.

The amount charged to the Comprehensive Operating Statement in respect of defined benefit superannuation plans represents the

contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff during the

reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based on actuarial

advice.

Page 9






(g) Expense Recognition (continued)

2013 2012

Defined contribution plans: Hesta 89,593 99,985

First State Super 270,054 237,471Total 359,647 337,456

Depreciation

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

2013 2012

Buildings

- Structure Shell Building Fabric Up to 60 years Up to 60 years

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

Central Plant

- Fit Out Up to 30 years Up to 30 years

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

Plant & Equipment Up to 15 years Up to 15 years

Medical Equipment Up to 15 years Up to 15 years

Computers & Communications Up to 15 years Up to 15 years

Furniture & Fittings Up to 15 years Up to 15 years

Motor Vehicles Up to 7 years Up to 7 years

Leasehold Improvements Up to 10 years Up to 10 years

Bad and doubtful debts

(h)

The following refers to financial instruments unless otherwise stated.

As part of the Buildings valuation, building values were componentised and each component assessed for its useful life which is

represented above.

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 Hesse Rural Health Service’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.

Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their

cost or valuation over their estimated useful lives. Depreciation is generally calculated on a straight line basis, at a rate that allocates the

asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation

method for all assets are reviewed at least annually. This depreciation charge is not funded by the Department of Health.

Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land 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.

Financial instruments

Contributions Paid

The name and details of the major employee superannuation funds and contributions made by the Health Service are as follows:

Supplies and consumables

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

of any inventories held for distribution are expensed when distributed.

Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

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

Other operating expenses

Page 10






(g) Expense Recognition (continued)

2013 2012

Defined contribution plans: Hesta 89,593 99,985

First State Super 270,054 237,471Total 359,647 337,456

Depreciation

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

2013 2012

Buildings

- Structure Shell Building Fabric Up to 60 years Up to 60 years

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

Central Plant

- Fit Out Up to 30 years Up to 30 years

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

Plant & Equipment Up to 15 years Up to 15 years

Medical Equipment Up to 15 years Up to 15 years

Computers & Communications Up to 15 years Up to 15 years

Furniture & Fittings Up to 15 years Up to 15 years

Motor Vehicles Up to 7 years Up to 7 years

Leasehold Improvements Up to 10 years Up to 10 years

Bad and doubtful debts

(h)

The following refers to financial instruments unless otherwise stated.

As part of the Buildings valuation, building values were componentised and each component assessed for its useful life which is

represented above.

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 Hesse Rural Health Service’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.

Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their

cost or valuation over their estimated useful lives. Depreciation is generally calculated on a straight line basis, at a rate that allocates the

asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and depreciation

method for all assets are reviewed at least annually. This depreciation charge is not funded by the Department of Health.

Depreciation is provided on property, plant and equipment, including freehold buildings, but excluding land 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.

Financial instruments

Contributions Paid

The name and details of the major employee superannuation funds and contributions made by the Health Service are as follows:

Supplies and consumables

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

of any inventories held for distribution are expensed when distributed.

Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:

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

Other operating expenses

Page 10






Categories of non-derivative financial instruments

Loans and receivables

Financial liabilities at amortised cost

(i)

Cash and Cash Equivalents

Receivables consist of:

- Statutory receivables, which includes predominantly amounts owing from the Victorian Government and GST input tax

credits recoverable; and

- Contractual receivables, which includes of mainly debtors in relation to goods and services, loans to third parties, accrued

investment income, and finance lease receivables.

Investment and Other Financial Assets

Investments are classified in the following categories:

- Financial assets at fair value through profit or loss;

- Loans and receivables; and

- Available-for-sale financial assets.

Other financial assets 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.

Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for

doubtful debts is recognised when there is objective evidence that an impairment loss has occurred. Bad debts are written off when

identified.

Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market.

These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans

and receivables are measured at amortised cost using the effective interest method, less any impairment.

Loans and receivables category includes cash and deposits (refer to Note 1(j)), term deposits with maturity greater than three months,

trade receivables, loans and other receivables, but not statutory receivables

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method,

less any accumulated impairment.

The Health Service assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.

Receivables

Financial instrument liabilities measured at amortised cost include all of the Health Service’s contractual payables, deposits held and

advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original

maturity of 3 months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in

value.

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.

Trade receivables, loans, term deposits with maturity greater than three months and other receivables are recorded at amortised cost,

using the effective interest method, less impairment.

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.

The Health Service classifies its other financial assets between current and non-current assets based on the purpose for which the

assets were acquired. Management determines the classification of its other financial assets at initial recognition.

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

Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables

are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments

because they do not arise from a contract

Assets

Page 11






Categories of non-derivative financial instruments

Loans and receivables

Financial liabilities at amortised cost

(i)

Cash and Cash Equivalents

Receivables consist of:

- Statutory receivables, which includes predominantly amounts owing from the Victorian Government and GST input tax

credits recoverable; and

- Contractual receivables, which includes of mainly debtors in relation to goods and services, loans to third parties, accrued

investment income, and finance lease receivables.

Investment and Other Financial Assets

Investments are classified in the following categories:

- Financial assets at fair value through profit or loss;

- Loans and receivables; and

- Available-for-sale financial assets.

Other financial assets 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.

Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for

doubtful debts is recognised when there is objective evidence that an impairment loss has occurred. Bad debts are written off when

identified.

Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market.

These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans

and receivables are measured at amortised cost using the effective interest method, less any impairment.

Loans and receivables category includes cash and deposits (refer to Note 1(j)), term deposits with maturity greater than three months,

trade receivables, loans and other receivables, but not statutory receivables

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest rate method,

less any accumulated impairment.

The Health Service assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.

Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition.

Receivables

Financial instrument liabilities measured at amortised cost include all of the Health Service’s contractual payables, deposits held and

advances received, and interest-bearing arrangements other than those designated at fair value through profit or loss.

Cash and cash equivalents comprise cash on hand and cash at bank, deposits at call and highly liquid investments with an original

maturity of 3 months or less, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in

value.

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.

Trade receivables, loans, term deposits with maturity greater than three months and other receivables are recorded at amortised cost,

using the effective interest method, less impairment.

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.

The Health Service classifies its other financial assets between current and non-current assets based on the purpose for which the

assets were acquired. Management determines the classification of its other financial assets at initial recognition.

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

Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables

are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments

because they do not arise from a contract

Assets

Page 11






(i) Assets (continued)

Property, Plant and Equipment

Revaluations of Non-Current Physical Assets

Prepayments

Disposal of Non-Financial Assets

Impairment of Non-Financial Assets

• financial assets;

• investment property that is measured at fair value; and

• non-current physical assets held for sale.

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and

impairment.

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 land, public announcements or commitments made in relation to the intended use of the land.

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.

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.

Non-current physical assets measured at fair value are revalued in accordance with FRD103D Non-current physical assets. This

revaluation process normally occurs at least every five years, based upon the asset's Government Purpose Classification, but may occur

more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled

revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or

decrements arise from differences between an asset's carrying value and fair value.

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.

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 of future cash flows expected to be obtained from the asset and fair value less costs to sell.

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.

Any gain or loss on the sale of non-financial assets is recognised at the date that control of the asset is passed to the buyer and is

determined after deducting from the proceeds the carrying value of the asset at that time.

Apart from intangible assets with indefinite useful lives, all other assets are tested annually for indications of impairment except for:

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in

the property, plant & equipment revaluation surplus in respect of the same class of assets, they are debited directly to the asset

revaluation surplus.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within

that class but are not offset in respect of assets in different classes. Revaluation surplus are normally not transferred to accumulated

funds on derecognition of the relevant asset.

In accordance with FRD 103D the Health Service's non-current physical assets were assessed to determine whether revaluation of the

non-current physical assets was required.

Revaluation increments are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a

revaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised as

income in the net result.

Page 12







Property, Plant and Equipment

Revaluations of Non-Current Physical Assets

Prepayments

Disposal of Non-Financial Assets

Impairment of Non-Financial Assets

• financial assets;

• investment property that is measured at fair value; and

• non-current physical assets held for sale.

All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and

impairment.

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 land, public announcements or commitments made in relation to the intended use of the land.

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.

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.

Non-current physical assets measured at fair value are revalued in accordance with FRD103D Non-current physical assets. This

revaluation process normally occurs at least every five years, based upon the asset's Government Purpose Classification, but may occur

more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled

revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or

decrements arise from differences between an asset's carrying value and fair value.

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.

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 of future cash flows expected to be obtained from the asset and fair value less costs to sell.

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.

Any gain or loss on the sale of non-financial assets is recognised at the date that control of the asset is passed to the buyer and is

determined after deducting from the proceeds the carrying value of the asset at that time.

Apart from intangible assets with indefinite useful lives, all other assets are tested annually for indications of impairment except for:

Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in

the property, plant & equipment revaluation surplus in respect of the same class of assets, they are debited directly to the asset

revaluation surplus.

Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within

that class but are not offset in respect of assets in different classes. Revaluation surplus are normally not transferred to accumulated

funds on derecognition of the relevant asset.

In accordance with FRD 103D the Health Service's non-current physical assets were assessed to determine whether revaluation of the

non-current physical assets was required.

Revaluation increments are credited directly to the asset revaluation surplus, except that, to the extent that an increment reverses a

revaluation decrement in respect of that class of asset previously recognised as an expense in net result, the increment is recognised as

income in the net result.

Page 12







Investments accounted for using the equity method

Associates are those entities over which Otway Health and Community Services exercises significant influence, but not control.

Details of the joint venture are set out in note 8.

- its share of jointly controlled assets;

- any liabilities that it had incurred;

- its share of liabilities incurred jointly by the joint venture;

- any income earned from the selling or using of its share of the output from the joint venture; and

- any exenses incurred in relation to being an investor in the joint venture.

- the assets that it controls;

- the liabilities that it incurs;

- expenses that it incurs; and

- the share of income that it earns from selling outputs of the joint venture.

Impairment of Financial Assets

Net Gain/(Loss) on Financial Instruments

Net gain/(loss) on financial instruments includes:

- impairment and reversal of impairment for financial instruments at amortised cost; and

- disposals of financial assets.

Investments in jointly controlled assets and operations

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is

applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of

Assets.

- realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss

or held-for-trading;

At the end of each reporting period the Health Service assesses whether there is objective evidence that a financial asset or group of

financial asset is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than

60 days overdue, and changes in debtor credit ratings. All financial instruments assets, except those measured at fair value through profit

or loss, are subject to annual review for impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off and allowance for

doubtful receivables are recognised as expenses in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future

cash flows, discounted at the effective interest rate.

Where the fair value of an investment in an equity instrument at balance date has reduced by 20 per cent 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 instrument is treated as impaired.

In respect of any interest in jointly controlled assets, the health service recognises in the financial statements:

For jointly controlled operations, the health service recognises:

Investments in associates are accounted for using the equity method of accounting. Under the equity method for accounting, the health

service's share of the post-acquisition profits or losses of associates is recognised in the net result, and its share of post-acquisition

changes in revaluation surpluses and any other reserves, are recognised in both the comprehensive operating statement and the

statement of changes in equity. The cumulative post acquisition movements are adjusted against the cost of the investment.

Joint ventures are contractual arrangements between the health service and one or more other party to undertake an economic activity

that is subject to joint control. Joint control only exists when the strategic financial and operating decisions relating to the activity require

the unanimous consent of the parties sharing control (the venturers).

Interests in jointly controlled entities are accounted for in the financial statements using the equity method, as applied to investments in

associates.

Page 13







Investments accounted for using the equity method

Associates are those entities over which Otway Health and Community Services exercises significant influence, but not control.

Details of the joint venture are set out in note 8.

- its share of jointly controlled assets;

- any liabilities that it had incurred;

- its share of liabilities incurred jointly by the joint venture;

- any income earned from the selling or using of its share of the output from the joint venture; and

- any exenses incurred in relation to being an investor in the joint venture.

- the assets that it controls;

- the liabilities that it incurs;

- expenses that it incurs; and

- the share of income that it earns from selling outputs of the joint venture.

Impairment of Financial Assets

Net Gain/(Loss) on Financial Instruments

Net gain/(loss) on financial instruments includes:

- impairment and reversal of impairment for financial instruments at amortised cost; and

- disposals of financial assets.

Investments in jointly controlled assets and operations

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is

applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of

Assets.

- realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss

or held-for-trading;

At the end of each reporting period the Health Service assesses whether there is objective evidence that a financial asset or group of

financial asset is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than

60 days overdue, and changes in debtor credit ratings. All financial instruments assets, except those measured at fair value through profit

or loss, are subject to annual review for impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off and allowance for

doubtful receivables are recognised as expenses in the net result.

The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future

cash flows, discounted at the effective interest rate.

Where the fair value of an investment in an equity instrument at balance date has reduced by 20 per cent 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 instrument is treated as impaired.

In respect of any interest in jointly controlled assets, the health service recognises in the financial statements:

For jointly controlled operations, the health service recognises:

Investments in associates are accounted for using the equity method of accounting. Under the equity method for accounting, the health

service's share of the post-acquisition profits or losses of associates is recognised in the net result, and its share of post-acquisition

changes in revaluation surpluses and any other reserves, are recognised in both the comprehensive operating statement and the

statement of changes in equity. The cumulative post acquisition movements are adjusted against the cost of the investment.

Joint ventures are contractual arrangements between the health service and one or more other party to undertake an economic activity

that is subject to joint control. Joint control only exists when the strategic financial and operating decisions relating to the activity require

the unanimous consent of the parties sharing control (the venturers).

Interests in jointly controlled entities are accounted for in the financial statements using the equity method, as applied to investments in

associates.

Page 13






(j)

Payables consist of:

The normal credit terms are usually Nett 30 days.

Wages and Salaries, Annual Leave, Sick Leave and Accrued Days Off

Long Service Leave

The liability for long service leave (LSL) is recognised in the provision for employee benefits.

The components of this current LSL liability are measured at:

- present value - component that the Health Service does not expect to settle within 12 months; and

- nominal value - component that the Health Service expects to settle within 12 months.

Termination Benefits

Superannuation Liabilities

Employee Benefits

Those liabilities that are not expected to settle within 12 months are recognised in the provision for employee benefits as current liabilities,

but are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected

to apply at the time of settlement.

On-Costs

The Health Service 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.

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.

Termination benefits are payable when employment is terminated before the normal retirement date or when an employee accepts

voluntary redundancy in exchange for these benefits.

Contractual payables 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.

Liabilities for wages and salaries, including non-monetary benefits, annual leave accumulating sick leave and accrued days off expected

to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employees'

services up to the reporting date, classified as current liabilities and measured at nominal values.

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has

been raised with those employees affected that the terminations that will be carried out. The liabilities for termination benefits are

recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision.

Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for

employee benefits.

• 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.

Payables

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected

future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.

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

Current Liability - unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability even

where the Health Service does not expect to settle the liability within 12 months because it does not have the unconditional right to defer

the settlement of the entitlement should the employee take leave within 12 months.

Liabilities

Page 14






(j)

Payables consist of:

The normal credit terms are usually Nett 30 days.

Wages and Salaries, Annual Leave, Sick Leave and Accrued Days Off

Long Service Leave

The liability for long service leave (LSL) is recognised in the provision for employee benefits.

The components of this current LSL liability are measured at:

- present value - component that the Health Service does not expect to settle within 12 months; and

- nominal value - component that the Health Service expects to settle within 12 months.

Termination Benefits

Superannuation Liabilities

Employee Benefits

Those liabilities that are not expected to settle within 12 months are recognised in the provision for employee benefits as current liabilities,

but are measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected

to apply at the time of settlement.

On-Costs

The Health Service 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.

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.

Termination benefits are payable when employment is terminated before the normal retirement date or when an employee accepts

voluntary redundancy in exchange for these benefits.

Contractual payables 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.

Liabilities for wages and salaries, including non-monetary benefits, annual leave accumulating sick leave and accrued days off expected

to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employees'

services up to the reporting date, classified as current liabilities and measured at nominal values.

Liabilities for termination benefits are recognised when a detailed plan for the termination has been developed and a valid expectation has

been raised with those employees affected that the terminations that will be carried out. The liabilities for termination benefits are

recognised in other creditors unless the amount or timing of the payments is uncertain, in which case they are recognised as a provision.

Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for

employee benefits.

• 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.

Payables

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected

future payments are discounted using interest rates of Commonwealth Government guaranteed securities in Australia.

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

Current Liability - unconditional LSL (representing 10 or more years of continuous service) is disclosed as a current liability even

where the Health Service does not expect to settle the liability within 12 months because it does not have the unconditional right to defer

the settlement of the entitlement should the employee take leave within 12 months.

Liabilities

Page 14






(k) Leases

Operating Leases

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.

Leasehold Improvements

(l) Equity

Contributed Capital

Property, Plant & Equipment Revaluation Surplus

Asset Replacement Surplus

Specific Restricted Purpose Reserve

(m) Commitments for Expenditure

(n) Contingent Assets and Contingent Liabilities

(o)

Commitments for expenditure and contingent assets and liabilities are presented on a gross basis.

(p)

All amounts shown in the Financial Statements are expressed to the nearest dollar.

Minor discrepancies in tables between totals and sum of components are due to rounding.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are

recoverable from, or payable to the taxation authority, are presented as an operating cash flow.

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.

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and

FRD 119 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.

Goods and Services Tax

A specific restricted purpose reserve is establised where the Health Service has possession or title to the funds but has no discretion to

amend or vary the restriction and/or condition underlying the funds received.

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.

Rounding

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.

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.

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.

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.

Commitments for expenditure are not recognised on the Balance Sheet. Commitments for expenditure are disclosed 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.

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.

The asset replacement reserve is a reserve established by the Board to fund future asset replacement. The reserve

arises from a Board decision to re-invest the surpluses from Sea Mist Villas into capital expenditure.

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current physical assets.

Page 15






(k) Leases

Operating Leases

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.

Leasehold Improvements

(l) Equity

Contributed Capital



Specific Restricted Purpose Reserve

(m) Commitments for Expenditure

(n) Contingent Assets and Contingent Liabilities

(o)

Commitments for expenditure and contingent assets and liabilities are presented on a gross basis.

(p)

All amounts shown in the Financial Statements are expressed to the nearest dollar.

Minor discrepancies in tables between totals and sum of components are due to rounding.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are

recoverable from, or payable to the taxation authority, are presented as an operating cash flow.

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.

Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities and

FRD 119 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.

Goods and Services Tax

A specific restricted purpose reserve is establised where the Health Service has possession or title to the funds but has no discretion to

amend or vary the restriction and/or condition underlying the funds received.

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.

Rounding

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.

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.

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.

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.

Commitments for expenditure are not recognised on the Balance Sheet. Commitments for expenditure are disclosed 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.

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.

The asset replacement reserve is a reserve established by the Board to fund future asset replacement. The reserve

arises from a Board decision to re-invest the surpluses from Sea Mist Villas into capital expenditure.

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current physical assets.

Page 15






(q) New Accounting Standards and Interpretations

Date

Applicable

Beginning 1 Jan

2015

Beginning 1 Jan

2014

Beginning 1 Jan

2014

Beginning 1 Jan

2014

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2013 reporting period. As

at 30 June 2013, the following standards and interpretations had been issued 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. Otway Health

Service has not and does not intend to adopt these standards early.

AASB 13 Fair Value Measurement This Standard outlines the requirements for

measuring the fair value of assets and liabilities

and replaces the existing fair value definition and

guidance in other AASs. AASB 13 includes a ‘fair

value hierarchy’ which ranks the valuation

technique inputs into three levels using

unadjusted quoted prices in active markets for

identical assets or liabilities; other observable

inputs; and unobservable inputs.

Not-for-profit entities are not permitted to

apply this Standard prior to the

mandatory application date. Subject to

AASB's final deliberations and any

modifications made to AASB 11 for not-

for-profit entities, the entity will need to

assess the nature of arrangements with

other entities in determining whether a

joint venture arrangement exists in light

of AASB 11.

Standard / Interpretation Summary

Impact on Entities Annual

Statements

This Standard requires disclosure of information

that enables users of financial statements to

evaluate the nature of, and risks associated with,

interests in other entities and the effects of those

interests on the financial statements. This

Standard replaces the disclosure requirements in

AASB 127 Separate Financial Statements and

AASB 131 Interests in Joint Ventures.

The exposure draft ED 238 proposes to add some

implementation guidance to AASB 12, explaining

and illustrating the definition of a ‘strucutured

entity’ from a not-for-profit perspective.



mandatory application date.

Impacts on the level and nature of the

disclosures will be assessed based on

the eventual implications arising from

AASB 10, AASB 11 and AASB 128

Investments in Associates and Joint

Ventures.

Disclosure for fair value measurements

using unobservable inputs are relatively

onerous compared to disclosure for fair

value measurements using observable

inputs. Consequently, the Standard may

increase the disclosures for public

sector entities that have assets

measured using depreciated

replacement cost.

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 ).

Subject to AASB’s further modifications

to AASB 9, together with the anticipated

changes resulting from the staged

projects on impairments and hedge

accounting, details of impacts will be

assessed.

AASB 11 Joint Arrangements This standard deals with the concept of joint

control, and sets out a new principles-based

approach for determining the type of joint

arrangement that exists and the corresponding

accounting treatment. The new categories of joint

arrangements under AASB 11 are more aligned to

the actual rights and obligations of the parties to

the arrangement.

AASB 12 Disclosure of Interests in Other Entities

Page 16






(q) New Accounting Standards and Interpretations

Date

Applicable

Beginning 1 Jan

2015

Beginning 1 Jan

2014

Beginning 1 Jan

2014

Beginning 1 Jan

2014

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2013 reporting period. As

at 30 June 2013, the following standards and interpretations had been issued 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. Otway Health

Service has not and does not intend to adopt these standards early.

AASB 13 Fair Value Measurement This Standard outlines the requirements for

measuring the fair value of assets and liabilities

and replaces the existing fair value definition and

guidance in other AASs. AASB 13 includes a ‘fair

value hierarchy’ which ranks the valuation

technique inputs into three levels using

unadjusted quoted prices in active markets for

identical assets or liabilities; other observable

inputs; and unobservable inputs.



mandatory application date. Subject to

AASB's final deliberations and any

modifications made to AASB 11 for not-

for-profit entities, the entity will need to

assess the nature of arrangements with

other entities in determining whether a

joint venture arrangement exists in light

of AASB 11.



Statements

This Standard requires disclosure of information

that enables users of financial statements to

evaluate the nature of, and risks associated with,

interests in other entities and the effects of those

interests on the financial statements. This

Standard replaces the disclosure requirements in

AASB 127 Separate Financial Statements and

AASB 131 Interests in Joint Ventures.

The exposure draft ED 238 proposes to add some

implementation guidance to AASB 12, explaining

and illustrating the definition of a ‘strucutured

entity’ from a not-for-profit perspective.




Impacts on the level and nature of the

disclosures will be assessed based on

the eventual implications arising from

AASB 10, AASB 11 and AASB 128

Investments in Associates and Joint

Ventures.

Disclosure for fair value measurements

using unobservable inputs are relatively

onerous compared to disclosure for fair

value measurements using observable

inputs. Consequently, the Standard may

increase the disclosures for public

sector entities that have assets

measured using depreciated

replacement cost.

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 ).

Subject to AASB’s further modifications

to AASB 9, together with the anticipated

changes resulting from the staged

projects on impairments and hedge

accounting, details of impacts will be

assessed.

AASB 11 Joint Arrangements This standard deals with the concept of joint

control, and sets out a new principles-based

approach for determining the type of joint

arrangement that exists and the corresponding

accounting treatment. The new categories of joint

arrangements under AASB 11 are more aligned to

the actual rights and obligations of the parties to

the arrangement.

AASB 12 Disclosure of Interests in Other Entities

Page 16





Note 1: Statement of Significant Accounting Policies (Continued)

Date

Applicable

Beginning 1 Jan

2013

Beginning 1 Jan

2014

Beginning 1 Jan

2014

Beginning 1 July

2014

Beginning 1

January 2014

This Standard is not applicable as no

budget disclosure is required.

AASB 1055 extends the scope of budgetary

reporting that is currently applicable for the whole

of government and general government sector

(GGS) to NFP entities within the GGS, provided

that these entities present separate budget to the

parliament.

AASB 1055 Budgetary Reporting

This revised Standard prescribes the accounting

and disclosure requirements for investments in

subsidiaries, joint ventures and associates when

an entity prepares separate financial statements.



mandatory application date. The AASB

is assessing the applicability of

principles in AASB 127 in a not-for-profit

context.

As such, impact will be assessed after

the AASB’s deliberation.

AASB 128 Investments in Associates and Joint

Ventures

This revised Standard sets out the requirements

for the application of the equity method when

accounting for investments in associates and joint

ventures.

The Victorian Government is currently

considering the impacts of Reduced

Disclosure Requirements (RDRs) for

certain public sector entities and has not

decided if RDRs will be implemented in

the Victorian public sector.

AASB 127 Separate Financial Statements






context.






While the total superannuation expense

is unchanged, the revised methodology

is expected to have a negative impact on

the net result from transactions a few

Victorian public sector entities that

report superannuation defined benefit

plans.

In this revised Standard for defined benefit

superannuation plans, there is a change to the

methodology in the calculation of superannuation

expenses, in particular there is now a change in

the split between superannuation interest expense

(classified as transactions) and actuarial gains

and losses (classified as ‘Other economic flows –

other movements in equity’) reported on the

comprehensive operating statement.

AASB 119 Employee Benefits



Statements

AASB 1053 Application of Tiers of Australian

Accounting Standards

This Standard establishes a differential financial

reporting framework consisting of two tiers of

reporting requirements for preparing general

purpose financial statements.

Page 17





Note 1: Statement of Significant Accounting Policies (Continued)

Date

Applicable

Beginning 1 Jan

2013

Beginning 1 Jan

2014

Beginning 1 Jan

2014

Beginning 1 July

2014

Beginning 1

January 2014

This Standard is not applicable as no

budget disclosure is required.

AASB 1055 extends the scope of budgetary

reporting that is currently applicable for the whole

of government and general government sector

(GGS) to NFP entities within the GGS, provided

that these entities present separate budget to the

parliament.

AASB 1055 Budgetary Reporting

This revised Standard prescribes the accounting

and disclosure requirements for investments in

subsidiaries, joint ventures and associates when

an entity prepares separate financial statements.






context.



AASB 128 Investments in Associates and Joint

Ventures

This revised Standard sets out the requirements

for the application of the equity method when

accounting for investments in associates and joint

ventures.

The Victorian Government is currently

considering the impacts of Reduced

Disclosure Requirements (RDRs) for

certain public sector entities and has not

decided if RDRs will be implemented in

the Victorian public sector.

AASB 127 Separate Financial Statements






context.






While the total superannuation expense

is unchanged, the revised methodology

is expected to have a negative impact on

the net result from transactions a few

Victorian public sector entities that

report superannuation defined benefit

plans.

In this revised Standard for defined benefit

superannuation plans, there is a change to the

methodology in the calculation of superannuation

expenses, in particular there is now a change in

the split between superannuation interest expense

(classified as transactions) and actuarial gains

and losses (classified as ‘Other economic flows –

other movements in equity’) reported on the

comprehensive operating statement.

AASB 119 Employee Benefits



Statements

AASB 1053 Application of Tiers of Australian

Accounting Standards

This Standard establishes a differential financial

reporting framework consisting of two tiers of

reporting requirements for preparing general

purpose financial statements.

Page 17





NOTE 2: REVENUE

2013 2012 2013 2012 2013 2012

$ $ $ $ $ $

Revenue from Operating Activities

Government Grants

- Department of Health 3,314,711 3,323,749 25,347 1,500 3,340,058 3,325,249

- Commonwealth Government 772,373 763,011 289,363 319,704 1,061,736 1,082,715

33,821 - - - 33,821 -

- State Government - Other 62,261 99,964 40,803 6,951 103,064 106,915

Total Government Grants 4,183,166 4,186,725 355,513 328,155 4,538,679 4,514,880

Indirect Contribution by Department of Health

- Insurance 197 12,712 - - 197 12,712

Total Indirect Contribution by Department of Health 197 12,712 - - 197 12,712

Patient and Resident Fees

- Patient and Resident Fees (refer note 2a) 31,280 69,615 - - 31,280 69,615

- Residential Aged Care (refer note 2a) 422,963 410,862 - - 422,963 410,862

Total Patient and Resident Fees 454,243 480,477 - - 454,243 480,477

Donations & Bequests 189,540 22,448 - 494 189,540 22,942

Other Revenue from Operating Activities

- Contributions from Local Government 36,305 50,564 7,500 - 43,805 50,564

- Miscellaneous 398,643 280,113 293,658 264,776 692,301 544,888

Sub-Total Revenue from Operating Activities 5,262,094 5,033,039 656,671 593,425 5,918,765 5,626,464

Revenue from Non-Operating Activities

Interest 214,043 271,541 - - 214,043 271,541

Property Income 82,072 83,007 125 - 82,197 83,007

Total Revenue from Non-Operating Activities 296,115 354,547 125 - 296,240 354,547

Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment 241,400 14,000 - - 241,400 14,000

Donations & Bequests - 245,430 - - - 245,430

Residential Accommodation payments (refer 2a) - 36,540 - - - 36,540

Assets Received Free of Charge (refer note 2c) - - 452,000 - 452,000 -

18,844 1,642 - - 18,844 1,642

Sub-Total Revenue from Capital Purpose Income 260,244 297,612 452,000 - 712,244 297,612


using the Equity Model - - 185 - 185 -

Total Revenue 5,818,453 5,685,199 1,108,981 593,425 6,927,434 6,278,623

Indirect contributions by Department of Health;The Department of Health makes certain payments on behalf of the health service. These amounts have been brought to account in

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

Analysis of Revenue by Source

This note relates to revenues above the net result line only, and does not reconcile to comprehensive income.

Note 2a: Patient and Resident Fees 2013 2012

Recurrent: $ $

Acute

- Inpatients 31,280 69,615

Residential Aged Care

- Generic 386,935 410,862

- Residential Accommodation Payments 36,028

Total Recurrent 454,243 480,477

Capital Purpose:

- Residential Accommodation Payments - 36,540

Total Capital - 36,540

Otway Health & Community Services provides services supported by a Multi Purpose Service (MPS) agreement. Accordingly it is not possible

to analyse revenue by source as it is at the discretion of the Board of Management as to how to allocate grant income received. As a MPS

Otway Health & Community Services is not required to provide segment information in relation to its Residential Aged Care Service (RACS).

TotalHSA H&CI

Net Gain/(Loss) on Disposal of Non-Current Assets

(refer note 2b)

Commonwealth Grant - Health Network Funding

Page 18





NOTE 2: REVENUE

2013 2012 2013 2012 2013 2012

$ $ $ $ $ $

Revenue from Operating Activities

Government Grants

- Department of Health 3,314,711 3,323,749 25,347 1,500 3,340,058 3,325,249

- Commonwealth Government 772,373 763,011 289,363 319,704 1,061,736 1,082,715

33,821 - - - 33,821 -

- State Government - Other 62,261 99,964 40,803 6,951 103,064 106,915

Total Government Grants 4,183,166 4,186,725 355,513 328,155 4,538,679 4,514,880

Indirect Contribution by Department of Health

- Insurance 197 12,712 - - 197 12,712

Total Indirect Contribution by Department of Health 197 12,712 - - 197 12,712

Patient and Resident Fees

- Patient and Resident Fees (refer note 2a) 31,280 69,615 - - 31,280 69,615

- Residential Aged Care (refer note 2a) 422,963 410,862 - - 422,963 410,862

Total Patient and Resident Fees 454,243 480,477 - - 454,243 480,477

Donations & Bequests 189,540 22,448 - 494 189,540 22,942

Other Revenue from Operating Activities

- Contributions from Local Government 36,305 50,564 7,500 - 43,805 50,564

- Miscellaneous 398,643 280,113 293,658 264,776 692,301 544,888

Sub-Total Revenue from Operating Activities 5,262,094 5,033,039 656,671 593,425 5,918,765 5,626,464

Revenue from Non-Operating Activities

Interest 214,043 271,541 - - 214,043 271,541

Property Income 82,072 83,007 125 - 82,197 83,007

Total Revenue from Non-Operating Activities 296,115 354,547 125 - 296,240 354,547

Capital Purpose Income

State Government Capital Grants

- Targeted Capital Works and Equipment 241,400 14,000 - - 241,400 14,000

Donations & Bequests - 245,430 - - - 245,430

Residential Accommodation payments (refer 2a) - 36,540 - - - 36,540

Assets Received Free of Charge (refer note 2c) - - 452,000 - 452,000 -

18,844 1,642 - - 18,844 1,642

Sub-Total Revenue from Capital Purpose Income 260,244 297,612 452,000 - 712,244 297,612


using the Equity Model - - 185 - 185 -

Total Revenue 5,818,453 5,685,199 1,108,981 593,425 6,927,434 6,278,623

Indirect contributions by Department of Health;The Department of Health makes certain payments on behalf of the health service. These amounts have been brought to account in

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

Analysis of Revenue by Source

This note relates to revenues above the net result line only, and does not reconcile to comprehensive income.

Note 2a: Patient and Resident Fees 2013 2012

Recurrent: $ $

Acute

- Inpatients 31,280 69,615

Residential Aged Care

- Generic 386,935 410,862

- Residential Accommodation Payments 36,028

Total Recurrent 454,243 480,477

Capital Purpose:

- Residential Accommodation Payments - 36,540

Total Capital - 36,540

Otway Health & Community Services provides services supported by a Multi Purpose Service (MPS) agreement. Accordingly it is not possible

to analyse revenue by source as it is at the discretion of the Board of Management as to how to allocate grant income received. As a MPS

Otway Health & Community Services is not required to provide segment information in relation to its Residential Aged Care Service (RACS).

TotalHSA H&CI

Net Gain/(Loss) on Disposal of Non-Current Assets

(refer note 2b)

Commonwealth Grant - Health Network Funding

Page 18





Note 2b: Net Gain/(Loss) on Disposal of Non Current Assets 2013 2012

$ $

Proceeds from Disposals of Assets

Motor Vehicles 65,665 25,873

Total Proceeds from Disposals of Assets 65,665 25,873

Less: Written-Down Value of Assets Sold


Total Written-Down Value of Assets Sold 46,821 24,231

Net gains/(losses) on disposal 18,844 1,642

Note 2c: Assets Received Free of Charge

During the period, the fair value of assets received free of charge, was as follows:

Buildings 452,000 -

The asset received was the expansion of the Apollo Bay Library space and the integration of the Library with the Neighbourhood space.

This building project was jointly funded with Colac Otway council and the Department of Planning & Community Development.

Note 3: Analysis of Expenses

2013 2012 2013 2012 2013 2012

$ $ $ $ $ $

Employee Expenses

Salaries and Wages 3,688,433 3,420,556 503,967 418,861 4,192,400 3,839,417

Work cover - 7,368 - 5,206 - 12,574

Superannuation 309,979 303,982 42,971 33,474 352,950 337,456

Long Service Leave 32,781 33,431 37,003 11,135 69,784 44,567

Total Employee Expenses 4,031,193 3,765,337 583,941 468,676 4,615,134 4,234,014

Non-Salary Labour Costs

Fee for Service Medical Officers 174,949 188,925 311 - 175,260 188,925

Total Non-Salary Labour Costs 174,949 188,925 311 - 175,260 188,925

Supplies & Consumables

Drug Supplies 27,456 24,860 - - 27,456 24,860

Medical, Surgical Supplies and Prosthesis 31,218 52,159 5,950 - 37,168 52,159

Pathology Supplies 1,095 - - - 1,095 -

Food Supplies 91,171 103,821 34,794 30,763 125,965 134,584

Total Supplies & Consumables 150,940 180,840 40,744 30,763 191,684 211,603

Other Expenses from Continuing Operations

Domestic Services & Supplies 107,566 114,419 2,455 8,006 110,021 122,425

Fuel, Light, Power & Water 93,081 79,630 - - 93,081 79,630

Insurance costs funded by Department of Health 197 12,712 - - 197 12,712

Motor Vehicle Expenses 53,449 50,910 - - 53,449 50,910

Repairs & Maintenance 143,381 50,761 - - 143,381 50,761

Maintenance Contracts 43,410 31,686 - - 43,410 31,686

Patient Transport 7,078 1,413 - - 7,078 1,413

Lease Expenses - - - - - -

263,732 231,260 - - 263,732 231,260

Other Administrative Expenses 510,284 435,845 23,936 44,734 534,220 480,578

Bad & Doubtful Debts 4,265 - - - 4,265 -

Audit Fee

- VAGO - Audit of Annual Financial Statements 9,066 9,222 - - 9,066 9,222

- Other - - - - - -

Total Other Expenses from Continuing Operations 1,235,509 1,017,859 26,391 52,740 1,261,900 1,070,598

Depreciation and Amortisation (refer note 4) 421,230 419,053 - - 421,230 419,053

Total Expenses 6,013,821 5,572,013 651,387 552,179 6,665,208 6,124,192

Analysis of Expenses by Source

Otway Health & Community Services provides services supported by a Multi Purpose Service (MPS) agreement. Accordingly it is not

meaningful to analyse expenses by source.

HSA H&CI

SWARH other expenses

Total

Page 19





Note 2b: Net Gain/(Loss) on Disposal of Non Current Assets 2013 2012

$ $

Proceeds from Disposals of Assets


Total Proceeds from Disposals of Assets 65,665 25,873

Less: Written-Down Value of Assets Sold


Total Written-Down Value of Assets Sold 46,821 24,231

Net gains/(losses) on disposal 18,844 1,642

Note 2c: Assets Received Free of Charge

During the period, the fair value of assets received free of charge, was as follows:

Buildings 452,000 -

The asset received was the expansion of the Apollo Bay Library space and the integration of the Library with the Neighbourhood space.

This building project was jointly funded with Colac Otway council and the Department of Planning & Community Development.

Note 3: Analysis of Expenses

2013 2012 2013 2012 2013 2012

$ $ $ $ $ $

Employee Expenses

Salaries and Wages 3,688,433 3,420,556 503,967 418,861 4,192,400 3,839,417

Work cover - 7,368 - 5,206 - 12,574

Superannuation 309,979 303,982 42,971 33,474 352,950 337,456

Long Service Leave 32,781 33,431 37,003 11,135 69,784 44,567

Total Employee Expenses 4,031,193 3,765,337 583,941 468,676 4,615,134 4,234,014

Non-Salary Labour Costs

Fee for Service Medical Officers 174,949 188,925 311 - 175,260 188,925

Total Non-Salary Labour Costs 174,949 188,925 311 - 175,260 188,925

Supplies & Consumables

Drug Supplies 27,456 24,860 - - 27,456 24,860

Medical, Surgical Supplies and Prosthesis 31,218 52,159 5,950 - 37,168 52,159

Pathology Supplies 1,095 - - - 1,095 -

Food Supplies 91,171 103,821 34,794 30,763 125,965 134,584

Total Supplies & Consumables 150,940 180,840 40,744 30,763 191,684 211,603

Other Expenses from Continuing Operations

Domestic Services & Supplies 107,566 114,419 2,455 8,006 110,021 122,425

Fuel, Light, Power & Water 93,081 79,630 - - 93,081 79,630

Insurance costs funded by Department of Health 197 12,712 - - 197 12,712

Motor Vehicle Expenses 53,449 50,910 - - 53,449 50,910

Repairs & Maintenance 143,381 50,761 - - 143,381 50,761

Maintenance Contracts 43,410 31,686 - - 43,410 31,686

Patient Transport 7,078 1,413 - - 7,078 1,413

Lease Expenses - - - - - -

263,732 231,260 - - 263,732 231,260

Other Administrative Expenses 510,284 435,845 23,936 44,734 534,220 480,578

Bad & Doubtful Debts 4,265 - - - 4,265 -

Audit Fee

- VAGO - Audit of Annual Financial Statements 9,066 9,222 - - 9,066 9,222

- Other - - - - - -

Total Other Expenses from Continuing Operations 1,235,509 1,017,859 26,391 52,740 1,261,900 1,070,598

Depreciation and Amortisation (refer note 4) 421,230 419,053 - - 421,230 419,053

Total Expenses 6,013,821 5,572,013 651,387 552,179 6,665,208 6,124,192

Analysis of Expenses by Source

Otway Health & Community Services provides services supported by a Multi Purpose Service (MPS) agreement. Accordingly it is not

meaningful to analyse expenses by source.

HSA H&CI

SWARH other expenses

Total

Page 19





NOTE 4: DEPRECIATION 2013 2012

$ $

Buildings 265,833 264,543

Plant & Equipment 132,265 135,124

Medical Equipment 23,132 19,386

421,230 419,053

NOTE 5: CASH AND CASH EQUIVALENTS

For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks, and short-term 2013 2012

deposits which are readily convertible to cash on hand, and are subject to insignificant risk of change $ $

in value, net of outstanding overdrafts.

Cash on Hand 870 651

Cash at Bank 382,793 244,326

383,663 244,977

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement) 383,663 244,977

NOTE 6: RECEIVABLES 2013 2012

$ $

Current

Contractual

Trade Debtors 91,078 77,510

Patient Fees 228,591 78,784

Accrued Investment Income 38,278 84,357

Accrued Revenue 158,652 165,928

Less Allowance for Doubtful Debts - Patient Fees (4,264) -

512,335 406,579

Statutory

GST Receivable 46,005 16,445

46,005 16,445

TOTAL CURRENT RECEIVABLES 558,340 423,024

TOTAL RECEIVABLES 558,340 423,024

(a) Movement in the Allowance for Doubtful Debts

Balance at beginning of year - -

Increase in Allowance recognised in profit or loss 4,264 -

Balance at end of year 4,264 -

(b) Ageing of Receivables

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

(c) Nature and extent of risk arising from Receivables

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

NOTE 7: INVESTMENTS AND OTHER FINANCIAL ASSETS 2013 2012

$ $

Current

24 Hour At Call Account 65,309 381,204

Aust. Dollar Term Deposits 3,897,416 4,829,949

Hi-Yield Investment Account 101 878

TOTAL 3,962,826 5,212,031

Represented by:

Multi-Purpose Service Investments 1,921,025 2,527,242

Accommodation Bonds (Refundable Entrance Fees) 2,041,801 2,684,789

3,962,826 5,212,031

(a) Ageing of Other Financial Assets

Please refer to note 17 (b) for the ageing analysis of Investments and Other Financial Assets

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

Please refer to note 17 (b) for the nature and extent of credit risk arising from Investments and Other Financial Assets

Page 20





NOTE 4: DEPRECIATION 2013 2012

$ $

Buildings 265,833 264,543

Plant & Equipment 132,265 135,124

Medical Equipment 23,132 19,386

421,230 419,053

NOTE 5: CASH AND CASH EQUIVALENTS

For the purposes of the Cash Flow Statement, cash includes cash on hand and in banks, and short-term 2013 2012

deposits which are readily convertible to cash on hand, and are subject to insignificant risk of change $ $

in value, net of outstanding overdrafts.

Cash on Hand 870 651

Cash at Bank 382,793 244,326

383,663 244,977

Represented by:

Cash for Health Service Operations (as per Cash Flow Statement) 383,663 244,977

NOTE 6: RECEIVABLES 2013 2012

$ $

Current

Contractual

Trade Debtors 91,078 77,510

Patient Fees 228,591 78,784

Accrued Investment Income 38,278 84,357

Accrued Revenue 158,652 165,928

Less Allowance for Doubtful Debts - Patient Fees (4,264) -

512,335 406,579

Statutory

GST Receivable 46,005 16,445

46,005 16,445

TOTAL CURRENT RECEIVABLES 558,340 423,024

TOTAL RECEIVABLES 558,340 423,024

(a) Movement in the Allowance for Doubtful Debts

Balance at beginning of year - -

Increase in Allowance recognised in profit or loss 4,264 -

Balance at end of year 4,264 -

(b) Ageing of Receivables

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

(c) Nature and extent of risk arising from Receivables

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

NOTE 7: INVESTMENTS AND OTHER FINANCIAL ASSETS 2013 2012

$ $

Current

24 Hour At Call Account 65,309 381,204

Aust. Dollar Term Deposits 3,897,416 4,829,949

Hi-Yield Investment Account 101 878

TOTAL 3,962,826 5,212,031

Represented by:

Multi-Purpose Service Investments 1,921,025 2,527,242


3,962,826 5,212,031

(a) Ageing of Other Financial Assets

Please refer to note 17 (b) for the ageing analysis of Investments and Other Financial Assets

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

Please refer to note 17 (b) for the nature and extent of credit risk arising from Investments and Other Financial Assets

Page 20





NOTE 8: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

2013 2012

$ $

Investments in Associates 15,185 - Total 15,185 -

Name of Entity Principal Activity 2013 2012 2013 2012

% % $ $

Associates

Apollo Bay Medical Clinic Pty Ltd 50.00% - 15,185 -

Summarised Financial Information of Associates 2013 2012

$ $

Current Assets 113,470 -

Total Assets 113,470 -

Current Liabilities 113,100 -

Non-Current Liabilities - -

Total Liabilities 113,100 -

Net Assets 370 -

Share of Associates Net Assets 185 -

Total Income 452,769 -

Net Result 370 -

Share of Associates' Result after Income Tax 185 -

NOTE 9: PROPERTY, PLANT & EQUIPMENT 2013 2012

$ $

Land

Land at Fair Value 4,287,000 4,027,000

4,287,000 4,027,000

Buildings

Buildings at Fair Value 6,103,657 5,437,326

Less Accumulated Depreciation 1,223,501 958,144

Total Buildings 4,880,156 4,479,182

Plant & Equipment

Plant and Equipment at Fair Value 1,768,046 1,559,714

Less Accumulated Depreciation 827,017 745,450

Total Plant & Equipment 941,028 814,264

Medical Equipment

Medical Equipment at Fair Value 346,440 335,473


Total Medical Equipment 63,925 76,090

Total Property, Plant & Equipment 10,172,109 9,396,536

Land and buildings carried at valuation

An Independent valuation of the Health Service'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 2009.

Ownership Interest Value

Country of Incorporation

Australia

Page 21





NOTE 8: INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

2013 2012

$ $

Investments in Associates 15,185 - Total 15,185 -

Name of Entity Principal Activity 2013 2012 2013 2012

% % $ $

Associates

Apollo Bay Medical Clinic Pty Ltd 50.00% - 15,185 -

Summarised Financial Information of Associates 2013 2012

$ $

Current Assets 113,470 -

Total Assets 113,470 -

Current Liabilities 113,100 -

Non-Current Liabilities - -

Total Liabilities 113,100 -

Net Assets 370 -

Share of Associates Net Assets 185 -

Total Income 452,769 -

Net Result 370 -

Share of Associates' Result after Income Tax 185 -

NOTE 9: PROPERTY, PLANT & EQUIPMENT 2013 2012

$ $

Land

Land at Fair Value 4,287,000 4,027,000

4,287,000 4,027,000

Buildings

Buildings at Fair Value 6,103,657 5,437,326

Less Accumulated Depreciation 1,223,501 958,144

Total Buildings 4,880,156 4,479,182

Plant & Equipment

Plant and Equipment at Fair Value 1,768,046 1,559,714


Total Plant & Equipment 941,028 814,264

Medical Equipment

Medical Equipment at Fair Value 346,440 335,473


Total Medical Equipment 63,925 76,090

Total Property, Plant & Equipment 10,172,109 9,396,536

Land and buildings carried at valuation

An Independent valuation of the Health Service'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 2009.

Ownership Interest Value

Country of Incorporation

Australia

Page 21





NOTE 9: PROPERTY, PLANT & EQUIPMENT (CONTINUED)

Reconciliations of the carrying amounts of each class of land, buildings, plant & equipment and communication at the beginning

and end of the previous and current financial year are set out below.

Plant & Medical Total

Land Buildings Equipment Equipment

$ $ $ $ $

Balance at 1 July 2011 4,027,000 4,742,195 827,374 28,939 9,625,508

Additions - 1,530 146,245 66,537 214,312

Disposals - - (24,231) - (24,231)

Depreciation expense (note 4) - (264,543) (135,124) (19,386) (419,053)

Balance at 1 July 2012 4,027,000 4,479,182 814,264 76,090 9,396,536

Additions 260,000 666,807 305,850 10,967 1,243,624

Disposals - - (46,821) - (46,821)


Balance at 30 June 2013 4,287,000 4,880,156 941,028 63,925 10,172,109

NOTE 10: PAYABLES 2013 2012

$ $

Current

Contractual

Trade Creditors 274,919 112,199

Accrued Expenses 13,795 91,790

GST Payable 90,000 -

Income in Advance 37,403 43,333

TOTAL 416,117 247,322

(a) Maturity analysis of payables

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

(b) Nature and extent of risk arising from payables

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

NOTE 11: PROVISIONS 2013 2012

$ $

Current Provisions

Employee Benefits *

- Unconditional and expected to be utilised within 12 months (nominal value) 602,830 594,809

- Unconditional and expected to be utilised after 12 months (present value) 131,973 131,973 Total Current Provisions 734,803 726,782

Non-Current Provisions

Conditional Long Service Leave Entitlements (present value) 237,473 207,322

Total Non-Current Provisions 237,473 207,322

Total Provisions 972,276 934,104

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costs

Current

Unconditional Long Service Leave Entitlements 269,507 259,068

Accrued Wages and Salaries 88,623 137,531

Annual Leave 356,834 316,435

Accrued Days Off 19,839 13,748

734,803 726,782

Non-Current


Total Employee Benefits and Related On-Costs 972,276 934,104

Movement in Long Service Leave:

Balance July 1 466,390 483,923

Provision made during the year 102,764 40,069

Settlement made during the year (62,174) (57,602)

Balance June 30 506,980 466,390

Page 22





NOTE 9: PROPERTY, PLANT & EQUIPMENT (CONTINUED)

Reconciliations of the carrying amounts of each class of land, buildings, plant & equipment and communication at the beginning

and end of the previous and current financial year are set out below.

Plant & Medical Total

Land Buildings Equipment Equipment

$ $ $ $ $

Balance at 1 July 2011 4,027,000 4,742,195 827,374 28,939 9,625,508

Additions - 1,530 146,245 66,537 214,312

Disposals - - (24,231) - (24,231)


Balance at 1 July 2012 4,027,000 4,479,182 814,264 76,090 9,396,536

Additions 260,000 666,807 305,850 10,967 1,243,624

Disposals - - (46,821) - (46,821)


Balance at 30 June 2013 4,287,000 4,880,156 941,028 63,925 10,172,109

NOTE 10: PAYABLES 2013 2012

$ $

Current

Contractual

Trade Creditors 274,919 112,199

Accrued Expenses 13,795 91,790

GST Payable 90,000 -

Income in Advance 37,403 43,333

TOTAL 416,117 247,322

(a) Maturity analysis of payables

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

(b) Nature and extent of risk arising from payables

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

NOTE 11: PROVISIONS 2013 2012

$ $

Current Provisions

Employee Benefits *

- Unconditional and expected to be utilised within 12 months (nominal value) 602,830 594,809

- Unconditional and expected to be utilised after 12 months (present value) 131,973 131,973 Total Current Provisions 734,803 726,782

Non-Current Provisions


Total Non-Current Provisions 237,473 207,322

Total Provisions 972,276 934,104

(a) Employee Benefits and Related On-Costs

Current Employee Benefits and related on-costs

Current

Unconditional Long Service Leave Entitlements 269,507 259,068

Accrued Wages and Salaries 88,623 137,531

Annual Leave 356,834 316,435

Accrued Days Off 19,839 13,748

734,803 726,782

Non-Current


Total Employee Benefits and Related On-Costs 972,276 934,104

Movement in Long Service Leave:

Balance July 1 466,390 483,923

Provision made during the year 102,764 40,069

Settlement made during the year (62,174) (57,602)

Balance June 30 506,980 466,390

Page 22





NOTE 12: OTHER LIABILITIES 2013 2012

$ $

Current


2,041,801 2,684,789

Represented by the following assets:Investments and Other Financial Assets (refer Note 7) 2,041,801 2,684,789

NOTE 13: EQUITY 2013 2012

$ $

(a) Surpluses


Balance at the beginning of the reporting period 2,618,828 2,618,828

Balance at the end of the reporting period 2,618,828 2,618,828

Represented by:

- Land 2,230,337 2,230,337

- Buildings 388,491 388,491

2,618,828 2,618,828


Balance at the beginning of the reporting period 185,902 185,902

Balance at the end of the reporting period 185,902 185,902

Restricted Specific Purpose Surplus

Balance at Beginning of Reporting Period 504,427 504,427


(b) Contributed Capital

Balance at Beginning of Reporting Period 3,787,544 3,787,544


(c) Accumulated Surplus / (Deficit)


Net Surplus/(Deficit) for the year 262,225 154,430


(d) Total Equity at end of financial year 11,677,565 11,415,340

2013 2012

$ $

Net Result for the Year 262,226 154,430

Non-Cash Movements

Depreciation 421,230 419,053

Joint Venture Equity Result (185) -

Assets Provided Free of Charge (452,000) -

Net (Gain)/Loss from Sale of Plant and Equipment (18,844) (1,642)

Movement in provision for Doubtful Debts 4,264 -

Change in Operating Assets & Liabilities

Increase/(Decrease) in Employee Entitlements 38,172 58,442

Increase/(Decrease) in Payables 168,795 47,485

Increase/(Decrease) in Other Liabilities - (36,540)

Decrease/(Increase) in Prepayments (10,649) 14,867

Decrease/(Increase) in Receivables (139,765) 48,065

Net Cash Inflow From Operating Activities 273,244 704,160

NOTE 15: COMMITMENTS 2013 2012

$ $

Non-cancellable Operating Leases

Operating lease commitments in respect of computers, photocopiers and property payable as follows:

Not Later than 1 year 24,602 36,036

Later than 1 year and not later than 5 years 4,811 20,088

29,413 56,124

NOTE 14: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH INFLOW

FROM OPERATING ACTIVITIES

Page 23





NOTE 12: OTHER LIABILITIES 2013 2012

$ $

Current


2,041,801 2,684,789

Represented by the following assets:Investments and Other Financial Assets (refer Note 7) 2,041,801 2,684,789

NOTE 13: EQUITY 2013 2012

$ $

(a) Surpluses


Balance at the beginning of the reporting period 2,618,828 2,618,828


Represented by:

- Land 2,230,337 2,230,337

- Buildings 388,491 388,491

2,618,828 2,618,828


Balance at the beginning of the reporting period 185,902 185,902


Restricted Specific Purpose Surplus

Balance at Beginning of Reporting Period 504,427 504,427


(b) Contributed Capital



(c) Accumulated Surplus / (Deficit)


Net Surplus/(Deficit) for the year 262,225 154,430


(d) Total Equity at end of financial year 11,677,565 11,415,340

2013 2012

$ $

Net Result for the Year 262,226 154,430

Non-Cash Movements

Depreciation 421,230 419,053

Joint Venture Equity Result (185) -

Assets Provided Free of Charge (452,000) -

Net (Gain)/Loss from Sale of Plant and Equipment (18,844) (1,642)

Movement in provision for Doubtful Debts 4,264 -

Change in Operating Assets & Liabilities

Increase/(Decrease) in Employee Entitlements 38,172 58,442

Increase/(Decrease) in Payables 168,795 47,485

Increase/(Decrease) in Other Liabilities - (36,540)

Decrease/(Increase) in Prepayments (10,649) 14,867

Decrease/(Increase) in Receivables (139,765) 48,065

Net Cash Inflow From Operating Activities 273,244 704,160

NOTE 15: COMMITMENTS 2013 2012

$ $

Non-cancellable Operating Leases

Operating lease commitments in respect of computers, photocopiers and property payable as follows:

Not Later than 1 year 24,602 36,036

Later than 1 year and not later than 5 years 4,811 20,088

29,413 56,124

NOTE 14: RECONCILIATION OF NET RESULT FOR THE YEAR TO NET CASH INFLOW

FROM OPERATING ACTIVITIES

Page 23





NOTE 16: CONTINGENT LIABILITIES & CONTINGENT ASSETS

The service has received funding in relation to a social housing innovation project. Under the agreement entered into with the

Department of Health the service is required to continue to manage the project for a period of 40 years expiring in 2043.

Should the project cease within this time the service is required to repay monies to the Department of Health under an

agreed formula specified in the agreement. It is the intention of Otway Health & Community Services to comply with the

conditions of the agreement and no amount is considered to be refundable, contingent or otherwise.

NOTE 17: FINANCIAL INSTRUMENTS

(a) Financial Risk Manangement Objectives and Policies

The Health Service's principal financial instruments comprise of:

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Payables (excluding statutory payables)

- Accommodation Bonds

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, in respect of each class of financial asset, financial liability and equity instrument

are disclosed in note 1 to the financial statements.

2013 2012

$ $

Financial Assets

Cash and Cash Equivalents 383,663 244,977

Loans and Receivables 4,479,425 5,618,610 4,863,088 5,863,587

Financial Liabilities

At Amortised Cost 2,457,918 2,932,111 2,457,918 2,932,111

(b) Credit Risk

The main purpose in holding financial instruments is to prudentially manage the Health Service's financial risks within the government policy

parameters.

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 deal where possible with entities with high credit ratings. Trade and

Other receivables that are not either past due nor impaired are considered to be of high credit quality.

No net holding gain or loss was made in respect of any of the above categories of financial instruments with the exception of interest

revenue which is disclosed in note 2.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Health Service will not be able to

collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days

overdue, and changes in debtor credit ratings.

The maximum exposure to credit risk is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance

sheet and notes to the financial statements. The health service does not have any material credit risk exposure to any single receivable or group

of receivables under financial instruments entered into by the entity.

Carrying Amount

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 as listed in the table below. 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.

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

that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, the Health Service’s policy is to

only deal with banks with high credit ratings.

Page 24





NOTE 16: CONTINGENT LIABILITIES & CONTINGENT ASSETS

The service has received funding in relation to a social housing innovation project. Under the agreement entered into with the

Department of Health the service is required to continue to manage the project for a period of 40 years expiring in 2043.

Should the project cease within this time the service is required to repay monies to the Department of Health under an

agreed formula specified in the agreement. It is the intention of Otway Health & Community Services to comply with the

conditions of the agreement and no amount is considered to be refundable, contingent or otherwise.

NOTE 17: FINANCIAL INSTRUMENTS

(a) Financial Risk Manangement Objectives and Policies

The Health Service's principal financial instruments comprise of:

- Cash Assets

- Term Deposits

- Receivables (excluding statutory receivables)

- Payables (excluding statutory payables)

- Accommodation Bonds

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, in respect of each class of financial asset, financial liability and equity instrument

are disclosed in note 1 to the financial statements.

2013 2012

$ $

Financial Assets


Loans and Receivables 4,479,425 5,618,610 4,863,088 5,863,587


At Amortised Cost 2,457,918 2,932,111 2,457,918 2,932,111

(b) Credit Risk

The main purpose in holding financial instruments is to prudentially manage the Health Service's financial risks within the government policy

parameters.

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 deal where possible with entities with high credit ratings. Trade and

Other receivables that are not either past due nor impaired are considered to be of high credit quality.

No net holding gain or loss was made in respect of any of the above categories of financial instruments with the exception of interest

revenue which is disclosed in note 2.

Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Health Service will not be able to

collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days

overdue, and changes in debtor credit ratings.

The maximum exposure to credit risk is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance

sheet and notes to the financial statements. The health service does not have any material credit risk exposure to any single receivable or group

of receivables under financial instruments entered into by the entity.

Carrying Amount

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 as listed in the table below. 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.

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

that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, the Health Service’s policy is to

only deal with banks with high credit ratings.

Page 24





NOTE 17: FINANCIAL INSTRUMENTS (CONT'D)

Ageing analysis of financial assets as at 30 June

Not Not

Past Due Less than 1-3 3 Months - 1-5 Impaired

Carrying And Not 1 Month Months 1 Year Years Financial

Amount Impaired Assets

2013 $ $ $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 383,663 383,663 - - - - -

Receivables

- Trade Debtors 91,078 82,497 2,431 2,390 3,760 - -

- Other Receivables 425,521 423,126 - 1,517 878 - -

Other Financial Assets

- Term Deposit 3,962,826 3,962,826 - - - - -

Total Financial Assets 4,863,088 4,852,112 2,431 3,907 4,638 - -

2012

Financial Assets


Receivables

- Trade Debtors 77,510 68,929 2,431 2,390 3,760 - -



- Term Deposit 5,212,031 5,212,031 - - - - -


(c) Liquidity Risk

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

Maturity Analysis of financial liabilities as at 30 June

Less than 1-3 3 Months - 1-5 Over 5

Carrying Contractual 1 Month Months 1 Year Years Years

Amount Cash Flows

2013 $ $ $ $ $ $ $

Payables 416,117 416,117 416,117 - - - -

Other Financial Liabilities

- Accommodation Bonds 2,041,801 2,041,801 - 2,041,801 - - -

Total Financial Liabilities 2,457,918 2,457,918 416,117 2,041,801 - - -

2012

Payables 247,322 247,322 247,322 - - - -




The following table discloses the contractual maturity analysis for the Health Service's financial liabilities. For interest rates applicable to each

class of liability refer to individual notes to the financial statements.

Past Due But Not Impaired

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. The Health Service does not hold any collateral as

security nor credit enhancements relating to any of its financial assets.

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

sheet. The Health Service manages its liquidity risk by monitoring forecast cash flows and ensuring that liquid assets are available.

Maturity Dates

Page 25






Ageing analysis of financial assets as at 30 June

Not Not

Past Due Less than 1-3 3 Months - 1-5 Impaired

Carrying And Not 1 Month Months 1 Year Years Financial

Amount Impaired Assets

2013 $ $ $ $ $ $ $

Financial Assets


Receivables

- Trade Debtors 91,078 82,497 2,431 2,390 3,760 - -



- Term Deposit 3,962,826 3,962,826 - - - - -


2012

Financial Assets


Receivables

- Trade Debtors 77,510 68,929 2,431 2,390 3,760 - -



- Term Deposit 5,212,031 5,212,031 - - - - -


(c) Liquidity Risk

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

Maturity Analysis of financial liabilities as at 30 June

Less than 1-3 3 Months - 1-5 Over 5

Carrying Contractual 1 Month Months 1 Year Years Years

Amount Cash Flows

2013 $ $ $ $ $ $ $

Payables 416,117 416,117 416,117 - - - -




2012

Payables 247,322 247,322 247,322 - - - -




The following table discloses the contractual maturity analysis for the Health Service's financial liabilities. For interest rates applicable to each

class of liability refer to individual notes to the financial statements.

Past Due But Not Impaired

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. The Health Service does not hold any collateral as

security nor credit enhancements relating to any of its financial assets.

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

sheet. The Health Service manages its liquidity risk by monitoring forecast cash flows and ensuring that liquid assets are available.

Maturity Dates

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(d) Market Risk

The Health Service's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and

other price risks. Objectives, policies and processes used to manage each of these risks are disclosed below.

Currency Risk

The Health Service has no exposure to foreign currency risk.

Interest Rate Risk

Weighted Interest Rate Exposure

Average Fixed Variable Non

Interest Carrying Interest Interest Interest

Rates Amount Rate Rate Bearing

2013 % $ $ $ $

Financial Assets

Cash and Cash Equivalents 0.35 383,663 - 383,012 651

Receivables

- Trade Debtors 91,078 - - 91,078

- Other Receivables 425,521 - - 425,521

Other Financial Assets - Term Deposit 4.12 3,962,826 3,962,826 - -

4,863,088 3,962,826 383,012 517,250


Payables 416,117 - - 416,117

Other Financial Liabilities - Accommodation Bonds 2,041,801 - - 2,041,801

2,457,918 - - 2,457,918

2012

Financial Assets


Receivables

- Trade Debtors 77,510 - - 77,510



5,863,587 5,212,031 244,326 407,230


Payables 0.00 247,322 - - 247,322

Other Financial Liabilities - Accommodation Bonds 0.00 2,684,789 - - 2,684,789

2,932,111 - - 2,932,111

Other Price Risk

The Health Service is exposed to insignificant other price risk

Exposure to interest rate risk might arise primarily through the Health Service's interest bearing assets and liabilities. The Health Service

currently has no interest bearing liabilities and is unlikely to have any into the future as interest bearing liabilities can only be entered into with

the approval of the Department of Treasury and Finance.

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(d) Market Risk

The Health Service's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and

other price risks. Objectives, policies and processes used to manage each of these risks are disclosed below.

Currency Risk

The Health Service has no exposure to foreign currency risk.

Interest Rate Risk

Weighted Interest Rate Exposure

Average Fixed Variable Non

Interest Carrying Interest Interest Interest

Rates Amount Rate Rate Bearing

2013 % $ $ $ $

Financial Assets


Receivables

- Trade Debtors 91,078 - - 91,078



4,863,088 3,962,826 383,012 517,250


Payables 416,117 - - 416,117

Other Financial Liabilities - Accommodation Bonds 2,041,801 - - 2,041,801

2,457,918 - - 2,457,918

2012

Financial Assets


Receivables

- Trade Debtors 77,510 - - 77,510



5,863,587 5,212,031 244,326 407,230


Payables 0.00 247,322 - - 247,322

Other Financial Liabilities - Accommodation Bonds 0.00 2,684,789 - - 2,684,789

2,932,111 - - 2,932,111

Other Price Risk

The Health Service is exposed to insignificant other price risk

Exposure to interest rate risk might arise primarily through the Health Service's interest bearing assets and liabilities. The Health Service

currently has no interest bearing liabilities and is unlikely to have any into the future as interest bearing liabilities can only be entered into with

the approval of the Department of Treasury and Finance.

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Sensitivity Disclosure Analysis

- A parallel shift of +1% and -1% in market interest rates (AUD) from year-end rates of 6%;

- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2% (the impact of this has not been modelled).

Carrying

Amount Profit Equity Profit Equity

2013 $ $ $ $ $

Financial Assets

Cash and Cash Equivalents 383,012 (3,830) (3,830) 3,830 3,830

Receivables

- Trade Debtors 91,078 - - - -

- Other Receivables 425,521 - - - -

Other Financial Assets - Term Deposit 3,962,826 (39,628) (39,628) 39,628 39,628 4,862,437 (43,458) (43,458) 43,458 43,458


Payables 416,117 - - - -

Other Financial Liabilities - Accommodation Bonds 2,041,801 - - - - 2,457,918 - - - -

2012

Financial Assets


Receivables





Payables 247,322 - - - -


(e) Fair Value

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

•

•

•

Interest Rate Risk

-1% +1%

The following table discloses the impact on net operating result and equity for each category of variable rate financial instruments held by the

Health Service at year end as presented to key management personnel, if changes in the relevant interest rate risk occur

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

The Health service considers that the carrying amount of financial 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.

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

unobservable market inputs.

Taking into account past performance, future expectations, economic forecasts, 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)

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

reference to quoted market prices;

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Sensitivity Disclosure Analysis

- A parallel shift of +1% and -1% in market interest rates (AUD) from year-end rates of 6%;

- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2% (the impact of this has not been modelled).

Carrying

Amount Profit Equity Profit Equity

2013 $ $ $ $ $

Financial Assets


Receivables





Payables 416,117 - - - -


2012

Financial Assets


Receivables





Payables 247,322 - - - -


(e) Fair Value

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

•

•

•

Interest Rate Risk

-1% +1%

The following table discloses the impact on net operating result and equity for each category of variable rate financial instruments held by the

Health Service at year end as presented to key management personnel, if changes in the relevant interest rate risk occur

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

The Health service considers that the carrying amount of financial 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.

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

unobservable market inputs.

Taking into account past performance, future expectations, economic forecasts, 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)

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

reference to quoted market prices;

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NOTE 18: JOINTLY CONTROLLED OPERATIONS AND ASSETS

Interest in Jointly Controlled Entities Principal Activity 2013 2012

% %

South West Alliance of Rural Health (SWARH) Information Technology 3.11% 3.12%

2013 2012

$ $

Current Assets


Receivables 64,608 59,864

Other Assets 8,348 5,078

Total Current Assets 105,724 117,072

Non-Current Assets

Property, Plant & Equipment 10,451 4,215

Total Assets 116,175 121,287

The Health Service interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:

Revenues

Revenue from Operating Activities 1,008,577 862,885

Total Revenue 1,008,577 862,885

Expenses

Employee Benefits 177,640 170,689

Maintenance Contract and IT Support 226,846 240,698

Operating Lease Costs 125,894 47,053

Other Expenses from Ordinary Activities 483,165 404,669

Depreciation 781 859

Total Expenses 1,014,326 863,968

Net Result (5,749) (1,083)

NOTE 19a: RESPONSIBLE PERSONS DISCLOSURES

a) Responsible Persons

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.

From To

Responsible Minister

The Honourable David Davis, MLC, Minister for Health and Ageing 1/07/2012 30/06/2013

The Honourable Mary Wooldridge, MLA, Minister for Mental Health 1/07/2012 30/06/2013

Governing Board

D. Hooke 1/07/2012 30/06/2013

P. Hagan 1/07/2012 30/06/2013

S. Verwoert 1/07/2012 30/06/2013

N. Brooks 1/07/2012 30/06/2013

R. Dawe 1/07/2012 30/06/2013

D. McLachlan 1/07/2012 30/06/2013

L. Harris 1/07/2012 30/06/2013

Accountable Officers

L. West 1/07/2012 30/06/2013

Ownership Interest

The Health Service interest in assets employed in the above jointly controlled operations and assets is detailed below. The amounts are

included in the financial statements under their respective asset categories:

Period

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NOTE 18: JOINTLY CONTROLLED OPERATIONS AND ASSETS

Interest in Jointly Controlled Entities Principal Activity 2013 2012

% %

South West Alliance of Rural Health (SWARH) Information Technology 3.11% 3.12%

2013 2012

$ $

Current Assets


Receivables 64,608 59,864

Other Assets 8,348 5,078

Total Current Assets 105,724 117,072

Non-Current Assets

Property, Plant & Equipment 10,451 4,215

Total Assets 116,175 121,287

The Health Service interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:

Revenues

Revenue from Operating Activities 1,008,577 862,885

Total Revenue 1,008,577 862,885

Expenses

Employee Benefits 177,640 170,689

Maintenance Contract and IT Support 226,846 240,698

Operating Lease Costs 125,894 47,053

Other Expenses from Ordinary Activities 483,165 404,669

Depreciation 781 859

Total Expenses 1,014,326 863,968

Net Result (5,749) (1,083)

NOTE 19a: RESPONSIBLE PERSONS DISCLOSURES

a) Responsible Persons

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.

From To

Responsible Minister

The Honourable David Davis, MLC, Minister for Health and Ageing 1/07/2012 30/06/2013

The Honourable Mary Wooldridge, MLA, Minister for Mental Health 1/07/2012 30/06/2013

Governing Board

D. Hooke 1/07/2012 30/06/2013

P. Hagan 1/07/2012 30/06/2013

S. Verwoert 1/07/2012 30/06/2013

N. Brooks 1/07/2012 30/06/2013

R. Dawe 1/07/2012 30/06/2013

D. McLachlan 1/07/2012 30/06/2013

L. Harris 1/07/2012 30/06/2013

Accountable Officers

L. West 1/07/2012 30/06/2013

Ownership Interest

The Health Service interest in assets employed in the above jointly controlled operations and assets is detailed below. The amounts are

included in the financial statements under their respective asset categories:

Period

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NOTE 19a: RESPONSIBLE PERSONS DISCLOSURES (CONT'D)

b) Remuneration of Responsible Persons

2013 2012

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

$0 - $9,999 7 7

$160,000 - $169,999 1 1

8 8

Total Remuneration received or due and receivable by Responsible Persons from the reporting entity

amounted to: $170,851 $164,923

c) Other Transactions of Responsible Persons and their Related Entities

There were no transactions entered into with responsible persons or their related entities.

NOTE 19b: EXECUTIVE OFFICER DISCLOSURES 2013 2012

The number of Executive officers are shown in their relevant income bands;

$100,000 - $109,999 1 1

$110,000 - $119,999 1 1

2 2

Total Remuneration received or due and receivable by Executive officers from the reporting entity

amounted to: $221,731 215,178

NOTE 20: EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

There are no events occurring since the balance date to the date of this report that would have a material effect on the operations

of the Health Service.

Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet.

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NOTE 19a: RESPONSIBLE PERSONS DISCLOSURES (CONT'D)

b) Remuneration of Responsible Persons

2013 2012

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

$0 - $9,999 7 7

$160,000 - $169,999 1 1

8 8

Total Remuneration received or due and receivable by Responsible Persons from the reporting entity

amounted to: $170,851 $164,923

c) Other Transactions of Responsible Persons and their Related Entities

There were no transactions entered into with responsible persons or their related entities.

NOTE 19b: EXECUTIVE OFFICER DISCLOSURES 2013 2012

The number of Executive officers are shown in their relevant income bands;

$100,000 - $109,999 1 1

$110,000 - $119,999 1 1

2 2

Total Remuneration received or due and receivable by Executive officers from the reporting entity

amounted to: $221,731 215,178

NOTE 20: EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

There are no events occurring since the balance date to the date of this report that would have a material effect on the operations

of the Health Service.

Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet.

Page 29

This report, which covers the reporting period 1 July 2012 – 30 June 2013, is fully compliant with the Health Services Annual Reporting Guidelines for 2012-2013 and will be tabled in Parliament in September and presented to the general public at Otway Health & Community Services Annual General Meeting.

In accordance with the Financial Management Act 1994, I am pleased to present the Report of Operations for Otway Health & Community Services (Otway Health) for the year ending 30th June 2013.

Mr Peter HaganPresident Apollo Bay, 31 July 2013

Vision, Mission & Values 2

Chairman and Chief Executive’s Report 3

Your health service in a nutshell 6

Developing and encouraging strategic 7 relationships 2012 – 2013 Board of Governance 9

Organisational Structure 10

Staff by Department 12

Workforce data 13

Occupational Health and Safety 13

Services to our community 14

Client participation 15

Our neighbourhood 16

Statutory compliance requirements 17

Finance 20

Disclosure Index 21

CONTENTS

The Multi-purpose Services program seeks to achieve the following objectives for small rural and remote communities:

Improved access to a mix of health and aged care services that meet • community needs;

More innovative, flexible and integrated service delivery; •

Flexible use of funding and/or resource infrastructure within • integrated service planning;

Improved quality of care for clients; and •

Improved cost-effectiveness and long term viability of services.•

the Commonwealth, the State and Otway Health have agreed to co-operate for the establishment and maintenance of a Multi-purpose Service in Apollo Bay and District.

The Multi-purpose Services program is jointly funded by the Commonwealth and the State;

Otway Health Report of Operations 2012 -2013

Documents

Transcript of Otway Health Report of Operations 2012 -2013