ANNUAL
REPORT
2012 /13
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
head
CONTENTS
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
04
Vision, values and mission
42
Research and Development
22
The Executive
06
From the Chair and Chief Executive
44
Thank you for saving Jasmine’s life
24
Key performance indicators
10
Corporate Governance
26
Organisation chart
46
Finance Report from the Chief Executive and Chief Financial Officer
28
Corporate, Strategy and Performance
50
Independent Auditor’s report
30
Donor Services
24
Key performance indicators
Finance
Organisation chart
Statement of profit or loss and other
comprehensive income
32
26
52
Statement of financial position
Human Resources
Corporate, Strategy and Performance
53
34
28
Statement of changes in equity
Information Services
Donor Services
54
36
30
Statement of cash flows
Manufacturing
Finance
55
38
32
Notes to the financial statements
Medical, Transplantation
and Quality Services
Human Resources
56
40
34
36
Information Services
86
Declaration
Manufacturing
What your blood donation means to me
Research and Development
38
87
42
Australian Red Cross
Thank you for saving Jasmine’s life
90
Contact details
46
Finance Report from the Chief Executive and Chief Financial Officer
Medical, Transplantation
and Quality Services
88
44
40
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
xxxxxxxxxxxxxxxxxx
20 The Board
xxxxxxxxxxxxxxxxxx
22
xxxxx.The Executive
ON THE COVER:
Picture by Darren James
Sabrina Liew from the
Melbourne Processing Centre
is inspecting the contents
of the tubes and checking
donation numbers against
the biochemistry print
pending report.
2
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AUSTRALIAN RED CROSS BLOOD SERVICE
We achieved the best match of red cell inventory
to patient demand, with supplies remaining within
our inventory sufficiency bands for 254 days.
Chair and Chief Executive Report
ANNUAL REPORT 2012/13
|
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OUR VISION,
MISSION AND VALUES
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
OUR VISION
To improve the lives of patients through
the power of humanity.
This expresses the belief that unifies
everyone at the Blood Service: that
improving the life of patients brings us
together as one organisation. In short,
‘one organisation, one direction.’
OUR MISSION
To perform a critical role in healthcare by
providing a safe, secure and cost effective
supply of quality blood products, essential
services and leading edge research to
meet the needs of patients.
This mission highlights our role as a
healthcare provider, maintains the focus
on patients and uses concrete language
relevant to all stakeholders. Importantly,
it easily translates to strategic measures,
which also makes it simpler to monitor
and report on how we are performing
against our aims.
We have key performance measures to
assess each of our operational activities
in terms of: supply, safety and quality,
productivity, sufficiency and financial
efficiency. We also have additional
measures to track our progress on
meeting our strategic objectives
which are:
•
Deliver service excellence for our
customers, donors and through
innovative products and services
•
Provide value for stakeholders
•
Improve organisational capability
An explanation of these objectives and the
programs of work that underpin them are
clearly set out in detail in the strategic
plan. Copies of the plan are obtainable
by contacting 03 9863 1600 or visiting
donateblood.com.au
OUR VALUES
Our values set out how we will
behave in the pursuit of our vision,
mission and strategic objectives:
Integrity
We act honestly and
ethically at all times.
Safety and quality
We make safety
and quality part of
everything we do.
Service
We focus on meeting the
needs of patients, the
community, customers,
donors, stakeholders and
colleagues.
Collaboration
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
Excellence
54
Statement of changes in equity
55
Statement of cash flows
We strive to be the
best at what we do.
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
4
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AUSTRALIAN RED CROSS BLOOD SERVICE
We work together to
achieve our goals.
Accountability
We take ownership
of our actions and
behaviours to ensure
we achieve our goals.
ANNUAL REPORT 2012/13
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FROM THE CHAIR
AND CHIEF EXECUTIVE
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The past year has been an outstanding
success for the Blood Service and it is
with great pleasure that we present our
Annual Report for 2012/13.
We want to make
the donation process
as seamless and
easy-going as
possible. Donors are
now reminded about
their appointment via
text message.
The many significant achievements
we delivered as an organisation for
the benefit of the Australian public are
the result of detailed strategic work
conducted by all divisions over the past
few years and we are now seeing the
fruits of that labour.
Despite a reduction in demand for red
cells and subsequent fall in the whole
blood collections needed this year, we
collected and delivered a record amount
of plasma for processing into a range of
life-saving products; 525 tonnes. We
also achieved the best match of red
cell inventory to patient demand, with
supplies remaining within our inventory
sufficiency bands for 254 days.
In October we began processing all
collections from South Australia at the
Melbourne Processing Centre, a change
that has not only driven significant
improvements in efficiency and
value for stakeholders but has
also stabilised inventory in that
state while improving inventory
availability of our products.
As we enter an era of an ageing
population coupled with an
increasing demand for plasma,
the Blood Service is striving
to constantly improve donor
management to ensure the
6
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AUSTRALIAN RED CROSS BLOOD SERVICE
sustainability of our donor panel so that
we can meet that demand.
This broad effort includes commencing
work on the implementation of a Donor
Relationship Management System which
provides staff with a central source of
donor information to help us personalise
our communications with them during
every interaction.
We want great looking and appealing
centres that give donors a better
experience every time they donate.
This is why we have been busy building
new donor centres across the country
and giving our existing centres a fresh,
new look. This work is part of our
refurbishment and refresh program. We
have also developed national donor centre
design guidelines which will allow us to
create safe and efficient centres.
We are improving how we do business
at the Blood Service and this year we
introduced a new set of appointment
reminders that we send to donors via text
message. We want to make the donation
process as seamless and easy-going
as possible. One text message arrives
five days before their appointment and
the second arrives the day before their
appointment and acts as a reminder to
hydrate and eat well prior to donating –
we hope donors find this new process
helpful for preparing to donate.
ANNUAL REPORT 2012/13
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04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Text messaging has been a tremendous
success with non-attendance rates
dropping by 25 per cent over the year
which has in turn, allowed our National
Contact Centre staff to focus their
attention on more outbound calls to
recruit new donors.
Hon Dr David Hamill AM
Chair
We are now also using mobile
applications and other online resources
to provide health professionals with
transfusion-related information and we
are expanding the iTransfuse Online
Learning Centre to support improving
clinical transfusion practice.
We have also continued to develop
our website (mytransfusion.com.au)
specifically designed for patients.
Ms Jennifer Williams
Chief Executive
Replacing an inefficient paper-based
referral and appointments system with an
electronic referral system for patients who
need blood taken for therapeutic reasons
has also been a huge success, cutting
patient waiting times from referral to
appointment from 12 weeks to two days.
As part of our deep commitment toward
providing the safest blood supply
possible, we have reduced the risk of
transfusion-related acute lung injury
(TRALI), one of the causes of which
is thought to be antibodies found,
particularly, in the blood of women
who have been pregnant.
In January, for the first time we achieved
100 per cent male-derived clinical plasma
components.
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AUSTRALIAN RED CROSS BLOOD SERVICE
We are continually broadening our
relationships with hospitals and our other
customers to ensure patients receive the
blood products they need when they need
them, and there is now clear evidence
our efforts are paying off. This year we
achieved an overall customer satisfaction
rate of 8.6 out of 10 and while there is
always room for improvement, we believe
this is a wonderful achievement.
Our work with the Australian Defence
Force to develop and supply frozen
blood products to our military in remote
and emergency situations is now in the
validation phase and following this work
we aim to supply initial products to the
Australian Defence Force in the
coming year.
I would like to take this opportunity
to thank our staff for their ongoing
commitment and support of the
Blood Service, particularly those
in Manufacturing for their patience
and flexibility during the shift from
Adelaide to Melbourne, and to our
Transplantation Services staff who
faced a high workload caused by
record organ donation rates.
Our Scientists in Research and
Development earned a record $1.3
million for the work conducted for
external agencies, while our Procurement
team within the Finance division achieved
savings for the organisation of $1.8 million
through the development and
implementation of rigorous tender and
purchasing systems.
The Finance division also finalised our
new funding agreement with the National
Blood Authority for the next three years
which reduces risk to the Blood Service
while enhancing funding certainty.
For the fourth consecutive year we have
achieved an operating surplus, this year it
was $12.5 million and we have returned
$8.9 million to government resulting in an
audited surplus of $3.6 million.
We will continue to review the way we
work to maximise efficiencies and will
introduce a number of programs to
ensure that we have the right skill mix and
infrastructure to support our future needs.
Once again I wish to thank our staff and
volunteers at the Blood Service for their
fine efforts and of course our donors for
their continuing generosity which changes
the lives of patients across the country
every day of every year.
Through the
course of the next
year we will develop a
new strategic plan and
set the direction for
the Blood Service
toward 2020.
Hon Dr David Hamill AM | Chair
Jennifer Williams | Chief Executive
The diversity of our workforce is an
increasing focus for us and this year we
introduced a new employee group called
the Gay, Lesbian and Other Workmates
network (GLOW). GLOW has been
designed to support staff that identify
as gay, lesbian, bisexual, transgender
or intersex. We hope that the GLOW
network will support our employees and
be a further demonstration of how the
Blood Service values the contribution and
expertise of all our staff members.
Through the course of the next year we
will develop a new strategic plan and set
the direction for the Blood Service toward
2020. Work is already underway with the
completion of a broad environmental
scan looking at trends in the sector
and the future demand for blood and
related products.
ANNUAL REPORT 2012/13
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CORPORATE
GOVERNANCE
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The Australian Red Cross Blood Service
is a division of Australian Red Cross.
The Board reports to the Red Cross
Board, which has overall responsibility
and oversight and appoints all
non-executive Board members.
Australian
governments
fully fund the
Blood Service for
the provision of
blood products
and services to
the Australian
community.
Australian governments fully fund the
Blood Service for the provision of blood
products and services to the Australian
community. Consequently, we have
specific financial and other reporting
obligations to the National Blood Authority.
The Board plays a vital role in ensuring
the governance of the Blood Service.
It is responsible for the organisation’s
efficient operation and takes the lead
in setting the culture of operating in a
responsible way within the community.
The Blood Service Code of Conduct
describes our expectations of how we
behave and breaches of this are managed
and reported through our governance
framework. During the year there were
no serious breaches requiring reporting
to the Board.
About the Board
The Blood Service has a Board
comprising nine non-executive members
and the Chief Executive, who reports to
the Board. Board members are selected
on the basis of their skills and experience
and are generally appointed for a
three year term, but may be eligible for
reappointment.
The responsibilities of the Board are to
oversee the strategic direction, financial
and operational activities and risk
10
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AUSTRALIAN RED CROSS BLOOD SERVICE
management of the organisation. Our Good
Governance Principles Policy available on
our website donateblood.com.au provides
more detail. Board meetings are held
monthly at various locations around the
country to enable interaction with staff
and stakeholders.
The Board has an induction and training
program and undertakes an annual review
of its own performance. The conclusion
of our externally facilitated 2012 review
was that the Board is performing at a high
level with recommendations seeking to
improve performance of the Board “at
the edges.” Actions included a change to
the responsibilities of Board Committees,
a holistic approach to Committee
membership, confirmation with Red Cross
of Board membership requirements and
ensuring diversity in Board recruitment
and succession planning. A further
outcome was the decision to alternate
internal self-evaluations with an externally
facilitated review every two years.
All of the actions from the 2012 review
have now been closed out, including
developing of the framework for the
self-evaluation to occur in 2013.
Board Committees
The Board is assisted in its deliberations by
its committees which may include external
members to provide specialist input.
Advisory Committee
Comprises a mainly external membership
and provides independent advice to the
Board and Red Cross on medical and
scientific aspects of the blood program.
It has a formal monitoring process
for donor, blood product and patient
safety issues and blood sector projects,
to ensure the Committee’s input and
endorsement for the Blood Service
approach in each case.
Members: Associate Professor Larry
McNicol (Chair), Mr Ken Davis, Dr Craig
French, Professor James Isbister, Dr
George Kotsiou, Associate Professor
Robert Lindeman, Dr Darryl Maher, Dr
Ellen Maxwell, Associate Professor Alison
Street, Mr Daryl Teague and Professor
John Zalcberg.
Ethics Committee
While not a Board Committee, the Ethics
Committee plays an important role in
our governance framework. This is an
independent body operating as a Human
Research Ethics Committee. It is fully
compliant with the National Statement
on Ethical Conduct in Human Research.
The Committee also considers broader
ethical issues affecting the organisation as
required.
Members: Professor Douglas Joshua
(Chair), Professor Tony Cunningham, Ms
Geraldine Farrell, Ms Kaye Hogan, Ms
Debra Holder, Associate Professor Robert
Lindeman, Mr Elton McKay, Professor
John Rasko, Mr Malcolm Wood and
Reverend Greg Woolnough.
Finance and Audit Committee
Ensures appropriate financial policies
and controls have been established and
are being implemented. It reviews and
recommends to the Board the annual
financial statements, and undertakes
appointment of internal auditors,
evaluation of financial aspects of risk
and monitoring of the resolution of issues
raised by internal and external auditors.
Our external auditor is Deloitte and the
internal audit function is carried out by
EY.
Members: Ms Hannah Crawford
(Chair), Mr Nigel Ampherlaw, Ms Sandy
Chakravarty, Hon Dr David Hamill, and
Ms Jan West. Mr Graham Addison, Mr
Andrew Eddy, Ms Kelly Jones and Mr
Jim Swinden retired from the Committee
during the year.
Nominations and Remuneration
Committee
Assists the Board in its deliberations on
executive remuneration, management
succession planning and matters relating
to employee policies. It also provides
advice on Board performance, succession
planning and recruitment of Board
Members.
Members: Hon Dr David Hamill (Chair),
Mr Ron Berenholtz, Associate Professor
Larry McNicol, Mr Ross Pinney, Mr Jim
Swinden (retired December 2012) and
Ms Jennifer Williams.
Risk Committee
Assists the Board in assuring that risk
is managed in accordance with its risk
management plan and that compliance
obligations are managed appropriately.
The Committee also monitors the
Information Services strategy and
business plan.
Members: Dr David Graham (Chair), Mr
Nigel Ampherlaw, Ms Kelly Jones, Mr Ross
Pinney, Mr Jim Swinden and Ms Jennifer
Williams. Mr Graham Addison, Dr Anne
Fletcher and Hon Dr David Hamill retired
from the Committee during the year.
ANNUAL REPORT 2012/13
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CORPORATE SOCIAL
RESPONSIBILITY (CSR)
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
The Blood Service conforms to the suite
of Australian Standards (AS8000-8004)
that guides best governance practice.
One of these is the Australian Standard
for Corporate Social Responsibility.
Social, environmental and financial
sustainability is of great importance to
the Blood Service. We are working to
create systems to better measure our
environmental impact and will assess
ways to improve our footprint. With 83
collection sites nationally, 38 mobile
sites and the requirement to transport
blood throughout the country, a complex
exercise and a long-term commitment.
The Blood Service is progressing to
increase the level of transparency of our
activities reported in our Annual Report,
including: product quality metrics, donor
and customer satisfaction outcomes,
workforce statistics, participation in policy
development and environmental metrics,
including waste.
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
9.8
53
Statement of financial position
87%
54
Statement of changes in equity
86%
55
Statement of cash flows
86%
56
Notes to the financial statements
85%
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
88%
9.75%
88%
• Optimising the appointment process
for donors;
• Enhancing how we communicate with
donors and how they provide feedback;
• Refreshing our donor centres to
provide a more relaxed environment;
• Making changes to our workforce to
allow our collections staff to have more
time with donors.
9.75
9.7
87%
87%
9.65
9.6
86%
2011
Donor satisfaction
12
Donor Satisfaction increased in 2012-13
by one percentage point for the second
consecutive year. The year 2012/13 saw
key projects for donor services focused
on developing strategies to improve the
satisfaction of blood donors. The focus on
collection processes includes:
We look forward to rolling these projects
out in 2013-14 and ultimately delivering
improved service to all our donors.
We hope that these processes will result
in a better experience for donors and
better return rates.
Donor Satisfaction
89%
Listening to our customers
and donors
|
9.55
2011
9.5
2013
Definitions
• Donor satisfaction: The percentage of top box
responses (eight, nine and 10) out of total responses
(one to 10)
• Probability of return: The average number of donors
who respond ‘yes’ to donating in the next six months
of total respondents.
Probability of Retention
AUSTRALIAN RED CROSS BLOOD SERVICE
Customer service
We have continued to focus on improving
our service to customers in 2011/12.
This year we have again improved the
quarterly Customer Satisfaction Survey
participation rate with 88 per cent of
our customers contributed in 2011/12,
up from 84 per cent last year. This,
combined with a program of meeting over
60 of our customers across the country,
has allowed us to continue to build a
clearer picture of our strengths and areas
for potential improvement.
The outsourced telephone-based
Customer Satisfaction Survey consists
of 30-40 questions with 25 per cent
of customers surveyed each quarter
(approximately 270 customers annually).
The survey results were very positive
with over 50 per cent of those surveyed
indicating a very high satisfaction level,
rating us nine or 10 on a 10 point
customer satisfaction scale. Customers
indicated that our main strengths were:
• overall service and professionalism of
Blood Service staff;
• o ur ability to supply sufficient quality
and quantity of product with accuracy
in a timely fashion.
In July 2011 we also implemented a
Customer Feedback System which gives
our customers another avenue to raise
issues and provide positive feedback.
This system is allowing the Blood Service
to get a better understanding of the main
issues that are affecting customers and
augments the Customer Satisfaction
Survey.
Based on survey and customer feedback
data, areas for improvement are:
• our ability to deal with customer issues
quickly and effectively;
• better communication of changes
for example.
The Blood Service
is committed to
fostering a dynamic
workforce free from
discrimination.
Labour force dynamics
The Blood Service is committed to
fostering a dynamic workforce free from
discrimination, and there have been no
reported incidents of discrimination in the
reporting period. The Blood Service has a
number of policies that matters related to
human rights. These include the: Equal
Opportunity and Discrimination Policy,
and the Illegal and Unethical Behaviour
Policy. We comply with the requirements
of the Workforce Gender Equality Agency
by submitting our report annually.
In 2012/13 the Blood Service employed
a total FTE of 3,821 with a 7.4:2.6
female:male ratio. Further information on
employment type by gender and years of
service are provided in the tables on the
following page.
Customers have strongly supported this
new system and over 96 per cent of the
issues raised have been closed within
agreed service resolution time-frames.
ANNUAL REPORT 2012/13
|
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CORPORATE SOCIAL RESPONSIBILITY
Continued...
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
Labour force
dynamics
Employment Type
Head Count
FTE
Female
Male
Female
Male
Full-Time
1,391
754
1,391.00
754
2,145
2,145.00
The Executive
Part-Time
1,517
165
973.15
95.57
1,682
1,068.72
24
Key performance indicators
Total Headcount
2,908
919
2,364.15
849.57
3,827
3,213.72
26
Organisation chart
Years of Service
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Head Count
Total
Headcount
Total FTE
FTE
FT
PT
FT
PT
6
3
6
1.96
9
7.96
Greater than 30, Less than 35
20
13
20
8.61
33
28.61
Greater than 25, Less than 30
42
17
42
11.58
59
53.58
Greater than 20, Less than 25
71
50
71
33.12
121
104.12
35 and over
Total
Headcount
Total FTE
Greater than 15, Less than 20
118
100
118
63.03
218
181.03
Greater than 10, Less than 15
212
194
212
123.46
406
335.46
Greater than 5, Less than 10
487
423
487
271.7
910
758.7
Under 5
1,189
882
1,189.00
555.27
2,071
1,744.27
Grand Total
2,145
1,682
2,145.00
1,068.72
3,827
3,213.72
NB: This data is valid at 30
June 2013. This is reported
differently to last year.
Blood Service
environmental footprint
Blood component efficiency
The Blood Service has a responsibility to
ensure that all aspects of the supply chain
including transport, storage and inventory
management minimize unnecessary
blood component wastage. In 2010/2011
the Blood Service identified the need to
establish a Blood Component Efficiency
Project to focus on providing efficient use
of red cells for manufacture and supply.
The project identified root causes of
issues and developed remedial methods
to increase blood component efficiency.
14
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AUSTRALIAN RED CROSS BLOOD SERVICE
As a direct result, the Blood Component
Efficiency project led to a red cell
efficiency improvement of 9.7 per
cent (over the duration of the whole
project 2010-2013), which equates to
approximately 90,000 donations per
annum. This is a further 2.7 per cent
efficiency improvement from 2011/12.
Whole Blood
Collection
Yield
2010/11
80.2%
2011/12
85.0%
2012/13
89.9%
The activities from this project have now
become a part of business as usual within
the Blood Service. The Blood Component
Efficiency Co-ordinator will support ongoing
yield initiatives to further increase blood
component efficiencies in 2013/14.
National Inventory
Management
Framework Project
During 2013, the Blood Service in
collaboration with the National Blood
Authority commenced work on a pilot
for the National Inventory Management
Framework project. The project aims to
define optimal red cell inventory across
the blood sector and implement a better
process and guidelines for effective red
cell inventory management. The Blood
Service expects outcomes from the
project will enable a greater ability to
respond to demand and reduce wastage
across the sector. A proof of concept
initiated in 2012/13 demonstrated
significant improvements and the
potential to define optimal inventory levels
and decrease costs.
International humanitarian
blood program
The Blood Service, together with the
Australian Red Cross Society has
provided technical and policy support to
blood services in the Asia Pacific Region
and beyond through its International
Humanitarian Blood Program.
Projects throughout 2012/13 have
included the International Humanitarian
Blood Program including capacity building
of the blood programs in Cambodia,
Indonesia and Papua New Guinea. The
Blood Service support for the provision
of technical assistance to Cambodia and
Papua New Guinea is funded through
the United States President’s Emergency
Plan for AIDS Relief program (PEPFAR).
Additional medical and technical support
is provided through the AusAID Pacific
Leaders Training Program and technical
assistance to neighbouring countries in the
Pacific region.
Waste management services
During 2011/12 the Blood Service
commenced work on a review of waste
disposal, considering factors such
as volume and type of waste as well
as disposal methods and costs.
A tender process for the supply of
waste management services is planned
for release in the next 12 months.
ANNUAL REPORT 2012/13
|
15
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SAFETY AND
EFFICIENCY
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
Ensuring the safety
of the blood supply
There are multiple checks through
the life-cycle of blood components
manufactured by the Blood Service
to ensure their safety. These occur
pre-donation, during donation and
post-donation.
• Hepatitis C Virus (HCV) RNA
• HCV antibody
• Human adult T Cell Lyphotropic
Virus-I/II (HTLV-I/II) antibody
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
During donation
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
The donation volume and duration are
recorded and used to determine whether
the donation can proceed to the next
manufacturing step. This occurs for all
• All donations undergo ABO and Rh D
blood grouping and are screened for
the presence of red cell antibodies.
donation types.
• Universal leucodepletion of red cell
and platelet components.
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
Post-donation
53
Statement of financial position
All donations are tested for the following
markers of transfusion transmitted
infectious diseases:
• Manufactured blood components are
selected according to a sampling plan
for quality control testing against the
components’ specifications
54
Statement of changes in equity
• Hepatitis B Virus DNA (HBV)
55
Statement of cash flows
• Hepatitis B surface antigen (HBsAg)
56
Notes to the financial statements
86
Declaration
• H
uman Immunodeficiency Virus-1
(HIV-1) RNA
87
What your blood donation means to me
• HIV-1 & HIV-2 antigen and antibody
88
Australian Red Cross
90
Contact details
Pre-donation
The Blood Service has developed
guidelines for the selection of blood donors
and all donors complete a confidential
questionnaire prior to each donation to
ensure that they meet guidelines.
16
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AUSTRALIAN RED CROSS BLOOD SERVICE
• Syphilis
• Selected components (approximately
25 per cent) are tested for antibodies
to cytomegalo virus (CMV). The
number is determined by inventory
requirements for supply of CMV
negative components.
• Based on donors’ responses to the
donor questionnaire, certain donations
are also tested for malarial antibodies.
• All platelets manufactured are
screened for bacterial contamination.
Other quality and safety measures include:
• All equipment used during
manufacturing and testing of blood
components undergo scheduled
maintenance programs to ensure their
optimal operation
• All components are handled and stored
in accordance with component specific
handling and storage requirements
• Processing facilities are fitted with
environmental monitoring and
controlling systems
Strategies to reduce
Transfusion Related Acute
Lung Injury (TRALI)
Blood transfusion recipients of high volume
plasma components such as clinical fresh
frozen plasma and apheresis platelets have
a potential risk of TRALI. It is thought that
HLA/HNA antibodies present in the plasma
of the transfused blood components are
responsible for TRALI symptoms. Women
who have been pregnant are known to
have HLA/HNA antibodies.
The Blood Service manufactures
predominantly male clinical plasma as
a risk reduction strategy for transfusionrelated acute lung injury (TRALI). During
2012/13, 100 per cent of clinical plasma
supplied by the Blood Service was
sourced from male donors. TRALI events
reported to the Blood Service continue to
decrease significantly.
Blood Service
participation in public
policy development
2012/13
Risk based decision framework
Since the 1980s, numerous measures
aimed at maximising blood safety have
been implemented based on varying
interpretations of the precautionary
principle and an unsustainable pursuit of
“zero risk”, without evident consideration
of cost effectiveness and opportunity cost.
The need for a collective, standardised
decision-making framework has become
clear, in the face of increasing complexity
in blood safety decision-making, driven
by medical, scientific, ethical, economic,
legal, and public policy factors.
The Alliance of Blood Operators (ABO)
Risk Based Decision Making (RBDM)
Project has been funded by ABO
members, AABB, BSI and Hema-Quebec
to develop an integrated, internationally
applicable decision making framework
for the blood sector, entrenched in donor
safety and optimal patient outcomes,
to guide major policy and operational
change. The Blood Service is represented
through Peter McDonald on the Steering,
Stakeholder Engagement and Health
Economics Committees and the ABO
Secretariat through the ABO Web Portal
Committee. Sheila Ward, currently based
in Australia on secondment from the
Canadian Blood Service, is the RBDM
project manager.
The need for
a collective,
standardised
decision-making
framework has
become clear.
This is a two-phase project that will
provide an overall risk framework with a
comprehensive set of health economics
tools; a stakeholder engagement plan to
gather broad input and maximise support;
and a web portal. Phase one (April 2013 to
March 2014) will form the basis for a draft
framework that will be used as a catalyst
for consultation with key stakeholders in
phase two (beginning April 2014 pending
budget approval). Socialisation activities
to increase awareness and adoption of the
RBDM framework will also be proposed in
phase two.
ANNUAL REPORT 2012/13
|
17
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SAFETY AND EFFICIENCY
Continued...
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Distinguishing
between the costs
for blood and blood
products in the
national pricing
framework, and
the cost of pricing
should be nationally
consistent.
Sustainability of Australia’s
blood supply
• price signals for blood should be
established for both the public and
private hospital system;
During 2012/13 the Blood Service
undertook a major research exercise to
consider the question of sustainability of
Australia’s blood supply over the next 20
years. The modelling took into account
a number of challenges to sustainability
including projected population growth,
aging population, heavier population,
IVIg demand. The final report concluded
that self-sufficiency in all blood products
in Australia is possible with some
improvements to current performance
provided there is no IVIg demand spike.
The findings, including recommendations
for improvements above the current trend
and the need for additional growth in the
plasma donor panel, will form a critical
part in the Blood Service’s planning
activities in the development of the new
Strategic Plan.
• distinguishing between the costs
for blood and blood products in the
national pricing framework, and the
cost of pricing should be nationally
consistent;
National efficient pricing for
hospital services
In early 2013, Dr Stephen Duckett was
engaged by the Blood Service to develop
the incorporation of the price of blood
into the national efficient price for hospital
services in Australia. The key issues
considered as part of this review included:
• The introduction of the national
efficient price should maintain the
core philosophy that the patient
should continue to receive blood
and blood products free of charge,
irrespective of hospital setting (ie,
public or private);
18
|
AUSTRALIAN RED CROSS BLOOD SERVICE
• costs should clearly reflect the
processing and procurement cost of
blood and blood products;
• potential funding implications exist for
states and territories as the National
Health reform is based on a 60:40
split, whereas blood and blood
products are currently funded on a
63:37 split and should be recognised.
The review made the following
recommendations for further
consideration by the Blood Service:
Recommendation one: Enhance financial
and performance accountability for blood
product use by hospitals.
Recommendation two: Devolve blood
budgets to hospital funding and allow
direct charging of products ordered/used.
Recommendation three: the need for better
information to allow appropriate blood
and blood product costing standard.
Recommendation four: Pricing for private
hospitals.
ANNUAL REPORT 2012/13
|
19
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Hon Dr David Hamill AM
Chair
THE BOARD
PhD, MA, BA (Hons), FCIT,
FAICD
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
- Former Treasurer of
Queensland
-
Director, Brookfield
Infrastructure Partners LP
- Chair, Gladstone Airport Corporation
-
Chair, Envirogen Pty Ltd
-
Chair, Ensham Workers’ Entitlements Fund Pty Ltd
-
Chair, Board of the Queensland Museum
-
Member, the Australian Red Cross Board
-
Chair, UQ College
1
4
Mr Nigel Ampherlaw
-
Chief Executive, Australian Red Cross Blood Service since March 2009
-
Councillor, La Trobe
University Council since 2009
-
Director, Goulburn Valley Health Board since July 2012
-
Former Chief Executive, Austin Health
-
Former Chief Executive, Alfred Health
-
Former Commissioner, Australian Commission on Safety and Quality in Health Care
-
Former Director, Mental Health Research Institute
-
1995 Victorian Business Woman of the Year - Public Sector Category
20
|
Associate Professor Larry McNicol
MBA, BSc, MACS, FAICD
MBBS (Hons), FRCA, FANZCA
- Director, CUA (since March, 2011)
- Director, Hunter Medicare Local
- Former Director and Chair, Citrus Australia
- Former Director, NICTA
- Former General Manager Technology, NAB
- Former CIO and Director, Deutsche Bank
- Former Managing Consultant, IBM
- Former CIO and Chief Manager, ANZ Bank
- Director of Anaesthesia, Austin Health
- Medical Director, Anaesthesia,
Perioperative and Intensive Care Clinical Service Unit, Austin Health
- Chairman of the Victorian Consultative Council on Anaesthetic Mortality & Morbidity (VCCAMM), Department of Health, Victoria
- Chairman of the Mortality Subcommittee of the Australian and New Zealand College
of Anaesthetists (ANZCA)
- Member of the ANZCA Quality and Safety
Committee
- Member of the Expert Working Group
(EWG) for the National Blood Authority
(NBA) Patient Blood Management (PBM)
Guidelines Review
- Chairman of the Clinical Reference
Group (CRG) for the Critical Bleeding
- Massive Transfusion and Perioperative
Modules of the PBM Guidelines
-
-
-
-
-
Chair Risk Committee & Technology
Committee Member,
Member, CUA Audit Committee and Strategy Committee
Director, Quickstep Technologies Ltd
Director, Grameen Foundation Australia
Former Partner of PwC for 22 years
Ms Sandy Chakravarty
5
CPA, MBA, MEcon, BEcon, MAICD
BEc, MSc, FAICD
7
BCom, FCA, MAICD
2
Jennifer Williams
Chief Executive
Ms Kelly Jones
Dr David Graham
- Chief Financial Officer of the Australian BPharm, FPS, PhD, FAICD
Red Cross Society
- Head of Asia-Pacific Finance & Global
Field Operations and International
Controller of The Boston Consulting Group
- Vice President Asia-Pacific of Ingersoll Rand
- Finance Director of Bristol-Myers Squibb
(Australia and Asia)
- Board Member of National Association of Women in Operations
- Member, Australian Institute of Company Directors
3
Ms Hannah Crawford
- Previous roles included the manager of
CRS Australia, the Commonwealth
Ageing and Aged Care program and the
Commonwealth Pharmaceutical Benefits
Scheme
Currently Board member of Arthritis (ACT)
and of Arthritis Australia
-
Chair, ISO Technical Committee
-
Adjunct Professor, RMIT University
BCom, LLB, CA, FFin
- Director, Grant Samuel & Associates
Pty Ltd
- Former Board Member, Alfred Health
- Former Board Member, Queen Elizabeth
Centre
- Former Manager, Arthur Andersen
Corporate Finance
- Former Tax Consultant, Ernst & Young
AUSTRALIAN RED CROSS BLOOD SERVICE
Retired from the Australian Public Service
most recently as the National Manager,
Therapeutic Goods Administration
6
Mr Ross Pinney
MBA, BComm, FCA, FCPA, FFin, FAICD
-
-
-
-
Former senior executive of National
Australia Bank Ltd
Deputy President, Australian Red Cross
Member, Finance Commission of the
International Federation of Red Cross and
Red Crescent
Chair, Rural Bank Ltd
8
- Co-Chair of the Cancer Drugs Alliance
- Former Member, Consultative Council of
the Victorian Cancer Agency
- Former Member, Board of Cancer Institute
NSW
- Former President, Clinical Oncological
Society of Australia
- 2011 Medical Oncology Group of Australia, Cancer Achievement Award recipient
9
Mrs Gabrielle Hewitson - Secretary
BSc, Grad Dip Bus Admin, GAICD, ACIS, ACSA
- Australian Red Cross Blood Service
Secretary
- Previous appointments in Australian
Red Cross Blood Service include Assistant
Secretary and Distribution Manager at
Australian Red Cross Blood Service
Victoria
-
Board Members who
retired during the year:
Mr Graham Addison
FCA, FCPA, BBus, Grad
Dip Bus, FCIS, FCSA,
FAICD, Grad Dip CSP
Retired March 2013
Dr Anne Fletcher
BSc, MSc, PhD,
FAIMS, FAICD
Retired December
2012
Mr Jim Swinden
BEc, MAdmin, FCHSM,
CPA, MAICD
Retired December
2012
Member of Governance Institute of Australia
Professor John Zalcberg, OAM
MBBS, PhD, FRACP, FRACMA, FAICD
- Director, Division of Cancer Medicine,
Peter MacCallum Cancer Centre
- Former Chief Medical Officer and
Executive Director Cancer Medicine, Peter
MacCallum Cancer Centre
- Chair, Australasian Gastro-Intestinal Trials
Group
- Honorary Professor, Department of
Epidemiology and Preventive Medicine,
Monash University
- Member, Board of Cancer Trials Australia
- Honorary Associate of the Clinical Trials
Centre, School of Public Health, University
of Sydney
1
2
3
4
5
6
7
8
9
ANNUAL REPORT 2012/13
|
21
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THE EXECUTIVE
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Mr John Brown
Executive Director,
Finance and Chief
Financial Officer
CPA, BBus (Accounting),
MAICD
Jennifer Williams
Chief Executive
BEc, MSc, FAICD
-
Chief Executive, Australian Red Cross Blood Service since March 2009
- Councillor, La Trobe
University Council since 2009
- Director, Goulburn Valley Health Board since July 2012
- Former Chief Executive, Austin Health
- Former Chief Executive, Alfred Health
-
Former Commissioner, Australian Commission on Safety and Quality in Health Care
- Former Director, Mental Health Research Institute
- 1995 Victorian Business Woman of the Year - Public Sector Category
22
|
-
-
-
-
Executive Director, Finance and Chief Financial Officer, Australian Red Cross Blood Service since July 2011
Former Executive Director, Finance and Corporate, The Royal Children’s Hospital
Former Financial Controller, Manager Financial Accounting and Management Accountant, Austin Health
Previous experience in roles within Victorian State Government and
the Commonwealth Government
Mrs Jacqui Caulfield
Executive Director,
Manufacturing
B. Bus (Accounting),
M. Bus (Manufacturing
Management), GAICD
- Executive Director, Manufacturing, Australian Red Cross Blood Service since September 2011
- Joined the Australian Red Cross Blood Service as National Supply Chain Manager
- Sixteen years in a multinational packaging organisation with responsibility for the supply chain
- Prior experience in project accounting roles in government and commercial organisations
AUSTRALIAN RED CROSS BLOOD SERVICE
Mr Mark Gardiner
Executive Director,
Information Services
and Chief Information
Officer
M. Bus (Management)
- Chief Information Officer and Director, Information Services, Australian Red Cross Blood Service since January 2013
- Former Chief Information Officer and Director, Information Technology Services, Alfred Health
- Former Chief Information Officer, Eastern Health
- Former Information Communication and Technology Manager, Fairfax Media
Ms Anne Heyes
Executive Director,
Human Resources
BA (Hons), M.Com,
GAICD
- Executive Director, Human Resources, Australian Red Cross Blood Service since 2004
- Former Human Resources Director, Victorian WorkCover Authority
- Former Human Resources Director,
Bank of Melbourne
- Previous experience in general management roles in HR at Myer Grace Brothers, OTC and Telstra
- Previous Advisory Board Member, Monash Institute of Medical Research
-
-
-
-
-
-
Dr David Irving
Executive Director,
Research and
Development
Mr Peter McDonald
BSc (Hons), MSc, PhD,
GradCertMgt, GAICD
BA (Economics), MPA,
FCPA, MAICD
Executive Director, Research and Development, Australian Red Cross Blood Service since October 2008
Former Chief Executive Officer, Diabetes Vaccine Development Centre
Former Head of Research and Business Development, Biotech Australia Pty Ltd
Foundation Director, AusBiotech Ltd, Australia’s biotechnology industry organisation
Former Post Doctoral Fellow, The Rockefeller University, New York and CSIRO, Sydney
Over 15 years’ experience in biomedical research translation
Dr Joanne Pink
Executive
Director, Medical,
Transplantation and
Quality Services and
Chief Medical Officer
Executive Director,
Corporate Strategy and
Performance
-
-
-
-
-
Executive Director, Corporate Strategy and Performance, Australian Red Cross Blood Service since 2009
Councillor, La Trobe University Council
Formerly, Chief Financial Officer, Alfred Health and Austin Health
Eleven years’ experience in the Victorian public hospital sector with responsibility for finance, information technology, performance monitoring, capital projects, infrastructure and other corporate services
Prior experience in several executive roles within Victorian Government Departments
Ms Janine Wilson
Executive Director,
Donor Services
BSc (Physio), MBA
MBBS, FRACP, FRCPA
GAICD
- Executive Director Medical, Transplantation and Quality Services and Chief Medical Officer Australian Red Cross
Blood Service since 2006
- Previously Director, Australian Red Cross Blood Service Queensland
- Previously Assistant Director, Red Cross Blood Transfusion Service New South Wales
- Haematologist with more than twenty
years transfusion medicine experience
- Executive Director, Donor Services, Australian Red Cross Blood Service since June 2011
- Previous roles included the Executive Director, Strategic Projects, Australian Red Cross Blood Service
- Former Director, Business Strategy and Development, New York Blood Centre
- Former, consultant at McKinsey and Company
ANNUAL REPORT 2012/13
|
23
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KEY PERFORMANCE
INDICATORS
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
KEY FIGURES
Actual 12-13
Target 12-13
Employee engagement
75%
75%
Lost time frequency rate
8.46
≤7.83
Number of process related recalls
per 10,000 collections
0.41
≤0.65
0
0
89.3%
≥86.0%
100.0%
≥98%
9.0
≤9.0
Red cell supply figure
(units)
763,551
801,295
Research and Development
Total platelet supply figures
(equivalent adult doses)
134,576
44
Thank you for saving Jasmine’s life
147,641
46
Finance Report from the Chief Executive and Chief Financial Officer
Clinical FFP supply figures
(equivalent adult doses)
50
Independent Auditor’s report
CSL Behring plasma supply figures (kg)
52
Statement of profit or loss and other
comprehensive income
Plateletpheresis split rate
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Business Processes
The top-level
performance
indicators for the
organisation are
reported to the
Board, which
monitors
performance
monthly.
Number of days that the total red cell blood
stocks for group O provides less than five days
coverage
Percentage of Supply Plan met
% Red cell yield
% Proportion male only clinical plasma
Age at Issue
Total IVIg supply (kg)
(last year)*
134,14
(last year)*
159,024
(last year)*
3,623
3,604
100%
100%
525,154
525,000
67.1%
64%
Donor satisfaction (score of ≥ 8 out of 10)
87%
89%
Probability of retention (new whole blood donors)
76%
75%
90%
≥86%
$12.516** million
$5 million
% CSL Behring plasma supply met
Donor Management
Customer Satisfaction (health providers)
Overall service provided by Blood Service
Finance
Main Operating Program financial result
* There is no target because our aim is to meet demand. This compares to last years’ level. ** Main Operating Program result prior to the return
of $8.9 million to the National Blood Authority.
24
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
25
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OUR ORGANISATION
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Legal Counsel
CHIEF EXECUTIVE
Corporate Strategy
& Performance
-
Strategic Planning and Business Development
-
National Contact Centre
- National Marketing and - Government Relations and Community Relations
Policy
- Regional Collection - Public Affairs and Services
Communication
- Business Process Improvement
-
International Services
-
Performance and Analysis
Finance
Donor Services
Financial Performance
-
-
Capital Planning and Property Services
-Recruitment
-
Learning and Development
-
Financial Accounting
-
Organisational Work Health and Safety
-Procurement
Development
-
-
Finance Information Team
Information
Services
Human Resources
-
Employee Relations
- Human Resources Consulting
-
Human Resources Shared Services and Payroll
Provides advice on legal matters affecting the organisation, including reviewing
major contracts. The Legal Counsel is also our Chief Privacy Officer, providing
advice on privacy legislation to ensure the organisation does not breach its
obligations in relation to personal information. Our Legal Counsel regularly liaises
with external stakeholders and is their point of contact on legal matters.
-
Infrastructure and End User Services
National Manufacturing
-
Processing and Testing
-
Project and Solution Design Services
-
Supply Chain
- The Customer Service - Application and Integration team
Services
- Business Analysis, Validation and Service Management
Regional Manufacturing
Research and
Development
Medical, Transplant
and Quality Services
Manufacturing
Medical, Transplantation and
Quality Services
-
Applied and Developmental Research
- Clinical Leadership Team and Pathology Services
-
Clinical Research
-
Donor and Product Safety Policy Unit
- Transfusion Science Research
- Innovation and Development
-
Customer Service Delivery
-
Transfusion Clinical Governance Unit
-
Processing and Testing
-
Medical Education Unit
-
Manufacturing Services
- Donor and Community Research
National Transplantation Services
Quality and Regulatory Services
- Quality Services Regional Teams
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AUSTRALIAN RED CROSS BLOOD SERVICE
-
Regulatory Affairs Team
-
Quality Systems Development Team
ANNUAL REPORT 2012/13
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Corporate Strategy
and Performance
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The Corporate Strategy
and Performance
Division supports
the Blood Service by
providing accurate and
timely business data
and strategic policy
advice that can be
used to assist in
operational decisionmaking, planning and
performance monitoring.
The Corporate Strategy and Performance
division supports the Blood Service by providing
accurate business data and strategic policy
advice that can be used to assist in operational
decision-making, planning and performance
monitoring. In addition, it is the external
interface of the organisation through positive
media promotion and the management of
national and international stakeholder relations
through our International Services team.
Government Relations and Policy
Strategic Planning and Business Development
Public Affairs and Communication provides
media support and information to promote
greater public awareness of blood, plasma
and platelet donations. The team also provides
expertise in crisis communications, offers
advice and support the business and is also
responsible for all employee communications
and management of the intranet.
The team manages our strategic and business
planning processes, including the translation
of overall business priorities into divisional
work plans. They also cover risk management,
insurance, national project co-ordination, and
business development which analyses and
develops new business opportunities.
Performance and Analysis
Cognos Reporting –The Cognos team is
responsible for the timely production of key
business reports such as the National Contact
Centre Lists, appointments reporting and the
donor services collections dashboards.
Analytics Team – The analytics team
understand the complexities of the Blood
Service data both in terms of core systems
and internal data warehouses to analyse and
support the business in acquiring knowledge.
Business Analysts – Utilise technical expertise
and knowledge of the business to support
the business in acquiring knowledge to
solve problems, plan, evaluate and monitor
performance.
Business Performance – The Business
Performance team aid in the development and
implementation of a comprehensive business
performance measurement process. The team
is alsoresponsible the production of our KPI
report to the Executive and the Board.
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AUSTRALIAN RED CROSS BLOOD SERVICE
Government Relations and Policy manages
the Blood Service’s relationship and
communications with the National Blood
Authority and Commonwealth and State
government departments. The team
also provides strategic policy advice and
coordination.
Public Affairs and Communication
Business Process Improvement
Business Process Improvement will develop an
approach that uses aspects of methodologies
such as Lean Thinking and Six Sigma, as
part of the Blood Service’s commitment to
continuous quality improvement. The team
will lead a small number of national projects
as well as provide training and consultancy
advice to managers.
International Services
International Services delivers the Blood
Service’s engagement with global and
regional blood networks and alliances,
international knowledge exchange, scanning,
benchmarking and humanitarian blood
programs.
Mr Peter McDonald
Executive Director,
Corporate Strategy and Performance
The Corporate Strategy and Performance
(CS&P) division this year designed new
data reporting and analysis systems
to enhance customer service; and
continued to assist developing countries
in our region to develop their own safe
blood systems.
Throughout the year, the CS&P division
also built on the Blood Service’s expertise
in working with biological products via an
agreement with the Victorian Institute of
Forensic Medicine to support the future
sustainability of the Donor Tissue Bank of
Victoria. CS&P also supported the Blood
Service’s leadership role in international
blood supply networks.
Mr McDonald said the CS&P division
had also completed extensive work on
development of a Donor Engagement
Strategy (DES). This model allows the
Donor Services division to gather the
characteristics of individual donors to
ensure that donor centres have the right
mix of donors and are therefore in the
best position to meet collection targets.
He said part of the aim of the DES was to
improve donor engagement via tailored
communications, based on their current
donation practices.
“The DES is looking at the characteristics
of individual donors such as whether
they are regular donors, donors who give
in times of need or Christmas donors
and also their biological profiles such as
whether they are an O Negative donor,”
Mr McDonald said.
“Once we know this, we can personalise
our call centre communications such as
encouraging the once-a-year donors to
come in more often, for example.
“Every donor is valuable, but we believe
this system will allow donors to donate
blood in the most valuable way and at
the most valuable time. We will also be
able to increase donor satisfaction,
and hence retention, by engaging with
donors in the way that is most
appropriate for them.
“We also worked closely with Donor
Services this year to enhance our donor
reminder system.
“We now send out SMS text reminders
five days before an appointment and
one day out with a hydration message,
an initiative that has proven to be a great
success.
“The SMS reminder allows donors to
cancel their appointment if the time is no
longer convenient which allows our Donor
Centres to run more smoothly leading to
an improved donation experience for those
attending while easing the workload on our
call centre staff.”
CS&P also worked very closely
with the Manufacturing division to
establish a Rapid Improvement Event
(RIE) program. A rapid improvement
event refers to a dedicated group
spending three to five days improving
a focused area or process. It is a way
for teams to carry out structured,
but creative problem solving and
process improvement, in a workshop
environment, over a short timescale.
Eighteen front line staff were trained in
Lean Manufacturing principles and how
to run a RIE event. The first wave of seven
events were conducted, and delivered
significant productivity improvements
across the processing centres.
Mr McDonald said the agreement to
work with the Victorian Institute of
Forensic Medicine was a first step in
providing further support to the tissues
sector and expanding the Blood Service’s
network of health partners.
He said links with international blood
services also allowed for improved
performance in Australia through
information exchange, benchmarking
and comparison.
“The Blood Services participates in three
key blood networks including the Alliance
of Blood Operators, the Asia Pacific Blood
Network and the Global Advisory Panel
for Blood Services in Red Cross and Red
Crescent Societies,” he said.
“Engagement in these networks not only
strengthens our performance in Australia
through the exchange of knowledge,
but such collaborations also allow us to
contribute globally to blood sector policy
discussions.”
The CS&P division continued this year to
provide expertise to Indonesia, Cambodia
and Nepal to help health authorities
formulate national blood policy and
legislation, develop donor marketing
and recruitment strategies and establish
clinical governance, quality management
and laboratories to enable them to create
their own safe blood supply systems.
“This is very intensive work but
enormously worthwhile, particularly
in Cambodia where we are now in the
process of helping our international
colleagues implement the five year
strategy we designed with them,” he said
We have also upgraded our corporate
reporting platform to the latest software
and new hardware which will improve
report run times, and over time,
improved charting and dashboard
interaction.
“The upgrade to Cognos 10.2 is a key
milestone in delivering the organisation’s
vision for efficient and intuitive reporting.
Another benefit is that the turnaround
time on report development will be
shorter,” Mr McDonald said.
ANNUAL REPORT 2012/13
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Donor Services
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
We are responsible
for managing blood
donations, national
marketing, contact
centre operations and
building community
relations, all of which
play central roles
in allowing us to
ensure that blood
components and
products are
collected as
required.
The Donor Services division manages the
end-to-end blood donor experience. We are
responsible for managing blood donations,
national marketing, contact centre operations
and building community relations, all of which
play central roles in allowing us to ensure that
blood components and products are collected
as required. In doing so, we contribute to the
organisation’s strategic objectives by providing
great service for our donors, improving
organisational capability, and providing value
for stakeholders by ensuring that blood
components are available when patients
need them.
National Contact Centre
The National Contact Centre seeks to ensure
that donors are scheduled to donate at a
time that meets supply requirements, whilst
improving donor frequency and retention. The
National Contact Centre works with the Supply
Chain, Public Affairs and Communication,
Marketing and Community Relations teams
to assist in booking donor appointments that
allow Donor Services to meet our collection
targets which ensure that the organisation
meets demand.
National Marketing and Community
Relations
National Marketing and Community Relations
is responsible for the recruitment of new
donors as well as contributing to the retention
and frequency of existing donors. It is also
responsible for brand stewardship. This
is achieved through the development of
strategic marketing programs and the design
of local activities to ensure an excellent donor
experience. Marketing also works with the
Public Affairs and Communications team to
promote and protect the image and reputation
of the Blood Service.
Regional Collection Services
Collection Services is the public face of the
Blood Service and is responsible for the
collection of whole blood, plasma and platelets
from volunteer donors in 83 fixed donor
centres and 38 mobile units that visit over
1000 sites annually.
Ms Janine Wilson
Executive Director,
Donor Services
This year the Donor Services division
collected enough plasma to meet the
ambitious target of 525 tonnes which
represents a 19 per cent increase in
plasma collections from the previous year.
This plasma is processed into a range of
life-saving products by CSL Behring in the
interests of Australian patients.
Executive Director of Donor Services,
Ms Janine Wilson described the result
as an outstanding achievement in a year
of lower whole-blood collections due to
a reduction in red cell demand.
Ms Wilson said that detailed planning,
improved communication between the
Donor Services and Manufacturing divisions
and the use of sophisticated forecasting
tools has allowed the Blood Service to meet
required national blood needs.
“This was an extremely favourable year in
terms of our plasma collections and also
our ability to match the demand cycle for
fresh blood components,” she said.
“We now have very sophisticated
systems in place that allow us to see
potential shortages or spikes in demand
for particular blood products and launch
into action before they occur.”
Ms Wilson also said that part of the
success this year was attributable to the
increased focus on improving the donor
experience to ensure the reliability and
sustainability of our donor panels.
“Our division has been hard at work on
a range of initiatives to decrease waiting
times, improve communications and
adjust the flow of donors through the
blood donation process.
“We have extended our opening hours
at donor centres across the country,
making it easier for donors to find a
convenient time to come in and give
their life-saving gift. We want to give
donors as much opportunity as possible
to attend appointments that suit them,
30
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AUSTRALIAN RED CROSS BLOOD SERVICE
and in turn create greater predictability
of appointment schedules.
“We’ve personalised our communication
to improve the level of service that
donors experience.
“To do this, the Donor Services division
has built a better understanding of
the elements of service that are most
important to our donors, developed rules
that guide how we’ll contact different
types of donors throughout their donation
‘career’, and tailored communications
for individual donors using existing
technologies.”
Ms Wilson gave the example of the new
appointments reminder system that
was implemented last year to make the
donation process as seamless and
easy-going as possible for donors.
“Donors are now reminded about their
appointment by text message. One
message arrives five days before their
appointment and the second message
acts as a helpful reminder about
donation preparation the day before
their appointment.
“We have also made cancelling
appointments even easier. Now donors
can cancel by replying to one of these
reminder text messages which helps us
fill appointments instead of having empty
donor chairs – a win-win for everyone.
“The new system has been so successful
that non-attendance rates have dropped
by 25 per cent over the year.
“Now we can confidently focus on
encouraging donors to commit to
future appointments because we’ve
made it easier for them to move their
appointments around if something
comes up.”
donors with blood types we need during
periods of peak demand such as winter.
“This is a wonderful example of the
collaboration and combination of
expertise within the Blood Service to
develop systems that enable us to
consistently collect and supply safe blood
and blood products across the nation.”
Ms Wilson said another focus of the
year had been the introduction of a
national design blueprint for all future
donor centre fit-outs which would
save the Blood Service money by
streamlining tenders for equipment and
furnishings and also deliver a consistent
donation experience across Australia.
“Blood donors are so important to the
Blood Service. We value their time and
generosity and want them to have the
best possible experience every time they
give blood,” she said.
“We want our donors across the country
to receive a consistent level of service
and know that each donor centre will be
clean, appealing and efficient so their
experience is a pleasant one.
“This initiative, developed in co-operation
with the Finance Division and Marketing
team, will also provide cost savings through
national tenders for stock and equipment
and improve the operation of our centres
through more efficient work flows.
“After years of detailed strategic work
and the on-going commitment of all our
staff, it is wonderful to be in a position to
describe this year as such a success.
“On behalf of the Blood Service, I would
like to thank our wonderful donors for
their continued support and generosity.”
This marked decrease in non-attendance
rates has also allowed our National
Contact Centre staff to focus their
attention on calling lapsed donors and
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Finance
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Financial
Performance
provides financial
and accounting
support to all
Blood Service
divisions.
The Finance Division manages organisational
funding and provides financial information,
reporting, analysis and advice to support
effective decision making and performance
improvement across the organisation.
It is responsible for the sound financial
management and integrity of the Blood
Service.
Financial Performance
Financial Performance provides financial
and accounting support to all Blood Service
divisions. Our key responsibilities include
developing divisional annual budgets and
reporting on monthly financial performance
and forecasts, managing output based
funding arrangements with the National Blood
Authority, liaising with State Governments on
funding of external services such as Tissue
Typing, Bone Marrow Donor centres and the
DonateLife organ donor services across the
jurisdictions, National Fleet Management and
providing financial and commercial analysis to
internal stakeholders for decision making.
Capital Planning and Property Services
Capital Planning and Property Services is
responsible for the leasing, construction
and facilities maintenance of all fixed and
mobile donor centres and overseeing major
construction projects in processing centres
and other facilities while our Strategic
Investment Group manages capital control
and governance and supports the Blood
Service in the development and review of
business proposals.
Mr John Brown
Executive Director,
Finance and Chief Financial Officer
Financial Accounting
Financial Accounting is responsible for the
preparation and integrity of the financial
results which includes monthly financial
and annual statutory reporting, the treasury
function, transaction processing including
accounts payable and receivable, internal
and external audit activity and Oracle system
support.
Procurement
Procurement is responsible for ensuring
compliance to the Blood Service procurement
policy, providing support to all divisions during
tender processes, assisting with subject
matter expertise in sourcing products, goods
and services, negotiating with key suppliers
and for the administration of national
contracts.
Finance Information Team
Finance Information Team conducts
organisation-wide budgeting and, forecasting,
and provides product costing, specialist
financial information, management reporting
and benchmarking.
Shifting the focus from regional to
national management of construction
and property matters through the
establishment this year of the Capital
Planning and Property team is already
achieving benefits and savings for
the Blood Service, according to Chief
Financial Officer Mr John Brown.
Mr Brown said the team – which
includes a National Construction
Manager, National Leasing Manager
and National Facilities Manager –
was now in the process of gaining
efficiency dividends through developing
standardised approaches to property
matters across Australia.
He said the creation of the new
team had already proven of great
benefit through the development of
Donor Centre Design Guidelines, the
negotiation of better leasing costs and
conditions and the development of a
Donor Centre Capital Works Master Plan
to guide long-term capital replacement
and refurbishment for donor centres.
“The Blood Service has 120 sites
around Australia, including 80 donor
centres which are in leased space in
cities, suburbs and regional towns
around the country,” Mr Brown said.
“In the past, most of our property
matters were handled at a local level,
without a standard approach in place to
guide upgrades, refits, internal design or
even site selection.
“Now with the recruitment of these
property specialists, we can negotiate
from a stronger position on our leases
and we now have national design
guidelines which provide a standard
design to create safe, clean and efficient
donor centres.
“This saves us money because we no
longer have to design a new donor
centre from scratch while other work
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AUSTRALIAN RED CROSS BLOOD SERVICE
conducted by the team will allow us to
know the most suitable location for new
centres and which need upgrading in
order of priority.”
Mr Brown also praised the work of the
Procurement team which this year
achieved savings for the Blood Service
of $1.8 million through the development
and implementation of rigorous tender
and purchasing systems.
He said that due to this remarkable
success, a revised target had been set
to achieve $6 million in savings in five
years by June 2015.
“The Blood Service requires
considerable materials - from
consumables to highly sophisticated
equipment such as centrifuges and
apheresis machines - and these savings
were made through Procurement Team
members assisting in the tender process
and ensuring contract conditions were
met,” Mr Brown said.
This year the Blood Service also
assumed the Secretariat role of the
International Benchmarking Cost
Model Working Group which includes
representatives of the American Red
Cross as well as from the blood services
of New Zealand, Canada and England.
“This is only the third year that the
organisation has been meeting yet it has
come to be regarded so highly that we
expect the Blood Services of Japan and
Holland to join soon.
“We are now building up very useful
data sets to guide us in the future and
we could even join with other blood
services in tendering for products or
equipment to achieve savings through
economies of scale.”
Mr Brown also said he was proud of the
work done by the Finance division in
finalising the funding agreement with
the National Blood Authority for the
next three year cycle which reduces risk
to the Blood Service while enhancing
funding certainty.
“This has been a very successful year
for the Blood Service and the Finance
division,” he said.
“Finalising the funding agreement
was a fantastic outcome and the
results achieved by the Property team
have been better than I could have
imagined.”
Mr Brown said the aim of the
organisation was to allow each country
to compare collection and production
costs with the aim of identifying
efficiencies.
“Through this working group we
compare how much it costs to collect,
test, process and deliver blood and
blood products, along with labour rates
and productivity, even down to the price
of consumables to see if we can change
processes or suppliers to achieve
savings,” he said.
ANNUAL REPORT 2012/13
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Human resources
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The Human Resource
division works across
the organisation
to improve the
sustainability of
labour supply, align our
structure, work-design
and culture with
organisational
objectives, improve
cost effectiveness and
productivity and build
a safer workplace.
The success of the Blood Service depends
on the skills and commitment of our 3,800
employees who have a diverse range of
expertise, from our scientists to our medical
staff, from our computer and business
analysts to our communications experts,
from those in manufacturing to those working
in our call centres. The Human Resource
division works across the organisation to
improve the sustainability of labour supply,
align our structure, work-design and culture
with organisational objectives, improve cost
effectiveness and productivity and build a safer
workplace. Human Resources also provides
strategies to attract the best and brightest and
improve the leadership skills and capability of
all who work for the Blood Service.
Work Health and Safety
Work Health and Safety develops, implements,
promotes and monitors systems to ensure
a safe and healthy environment for all
employees, contractors, volunteers donors
and visitors to the Blood Service. It ensures
that the Blood Service meets or exceeds its
statutory obligations. Services include expert
advice and strategies for injury prevention, as
well as timely rehabilitation and return-to-work
programs for people injured at work.
Recruitment
Recruitment provides efficient and effective
recruitment processes to support hiring
managers. This service includes requisition
management, job advertising, pre-start
engagement and administration management
for all new hires and internal staff movements.
The Recruitment team also assists in building
the Blood Service employment brand through
its continuous improvement of the Blood
Service internal and external career websites.
Learning and Development
Learning and Development partners with the
entire Blood Service to design, develop,
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AUSTRALIAN RED CROSS BLOOD SERVICE
implement and evaluate learning solutions that
underpin workforce competence.
Organisational Development
Organisational Development develops the
strategic programs and tools that help us
attract and improve the depth of talent and
leadership within the organisation thereby
enhancing our performance and culture in
line with our business plan.
Employee Relations
Employee Relations develops industrial
strategies to support the achievement of
organisational objectives, manages Blood
Service relationships with external industrial
stakeholders and the employment frameworks
under which all employees are employed.
The Employee Relations function also
manages the equal opportunity and diversity
functions within the Blood Service.
Human Resources Consulting
Human Resources Consulting provides local
consultancy services to line management in
the implementation of the Blood Service’s
People Management Plans within their region.
They advise line managers on the effective
management and utilisation of their workforce.
Human Resources Shared Services and Payroll
Human Resources Shared Services and
Payroll provide payroll services, centralised
administrative support for general employment
activities, Human Resource systems and
reporting to enable line managers to manage
their labour budgets and people management
Key Performance Indicators. Human Resource
Systems (incorporating People Systems
Project) aims to enhance the ‘end user’
experience for our managers and employees
by providing efficient, technology-enabled
Human Resource processes, which will enable
improved reporting and decision making.
Ms Anne Heyes
Executive Director,
Human Resources
The stand-out achievements of the
Human Resources division this year
include the development of training and
learning aids to help Project Managers
implement change more effectively,
the continued roll-out of the Diversity
Strategy and the finalisation of the
Employee Value Proposition (EVP)
which is designed to help position the
Blood Service more appropriately in the
recruitment market to attract a broader
group of potential candidates for roles.
Despite it being of a year of major
organisational restructures and
streamlining of work practices to create
efficiencies and improve customer
service, results of the annual Employee
Engagement Survey (EES) remained
stable and improved in some categories.
Ms Heyes, Executive Director, Human
Resources said that in line with the strong
results achieved last year, the Blood
Service continued to meet or exceed key
targets with training and development
improving by two per cent, leadership by
one per cent and engagement remaining
stable. The change management
category however declined.
“We know that staff feel more engaged
when they understand the reasons
for change and when that change
is executed well. One of our major
achievements this year was to support
the launch of the new Organisational
Change Methodology by training
project managers in how to use this
methodology and thereby improve
how change is communicated and
implemented. It is expected that this
initiative will improve the EES change
management result for next year.”
This year also saw the development
of a new employee consultative group
designed to assist management in
better understanding the needs of
our staff who identify as gay, lesbian,
bisexual, trans or intersex, called the
Gay, Lesbian and Other Workmates
network (GLOW).
Ms Heyes said the Blood Service is
developing its approach to managing
workforce diversity, and will be
starting with lesbian, gay, bisexual,
trans, transgender, intersex and other
sexuality, sex and gender diverse
people (LGBTI) initiatives first with
the help of the GLOW group and the
Pride In Diversity Group, who assist
organisations in understanding the
needs of the LGBTI community and how
organisations can improve their people
management policies and practices to
better meet these needs.
efficiencies. HR has worked closely
with the business as it continues to
streamline work practices across the
country. This has been done whilst also
negotiating 11 enterprise agreements.”
The Blood Service continued to invest
in the development of the workforce
with staff members attending training
modules this year to increase their
knowledge and skills.
“The attraction and retention of high
quality employees will also be enhanced
through the EVP which was completed
and is being introduced this year. That
work has resulted in the refining of
recruitment advertising and the Blood
Service website to clearly explain what
the Blood Service has to offer potential
employees as an employer.
“It is very important for an organisation
to have a very clear brand and we
have now updated our advertising
and website to make it clear that the
Blood Service is a national organisation
with a highly educated, professional
workforce which provides interesting
and challenging work.
Ms Heyes said she was pleased that the
Blood Service had this year continued
to attract and retain Donor Services
Nursing Assistants, which she believed
would promote workforce sustainability
given the current workforce shortage
of nurses.
“The HR division has supported
the business as it has restructured
its operations this year to improve
customer service and deliver
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Information
Services
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The team provides
technology advice and
guidance to ensure
product selection and
investment decisions
are suitable for the
Blood Service and also
leads the development
and maintenance of the
Information Services
technology strategy
into the future.
The Information Services Division provides
technology services to all divisions and
operating areas of the Blood Service. We
constantly work to meet or exceed our
declared mission: “To be a trusted partner
providing innovative, cost-effective Information
Technology solutions and leadership that
enables the business to provide a safe and
secure supply of blood products”.
Infrastructure and End User Services
Infrastructure and End User Services is
responsible for activities relating to the
maintenance and support of a wide range
of technology solutions and services used
by the Blood Service within its data centres,
processing centres and donor centre locations.
These include network, telecommunications
and video conferencing services, servers/
storage/backup technologies, email, security
products and end-user devices such as
personal computers, laptops, tablets and
printers. The team also provides front-line
customer support services via the Information
Services Service Desk and On-site Services
teams. We are also responsible for incident,
problem and event management, disaster
recovery, system security, asset management,
software license management and Information
Technology purchasing.
Project and Solution Design Services
Project and Solution Design Services is
responsible for activities relating to Information
Technology architecture and solution
design, project portfolio management and
implementation of Information Technology
related projects. The team provides technology
advice and guidance to ensure product
selection and investment decisions are
suitable for the Blood Service and also leads
the development and maintenance of the
Information Services technology strategy into
the future. The business planning activity
is also managed by this team, including the
support and/or development of business cases
for Information Technology related projects.
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AUSTRALIAN RED CROSS BLOOD SERVICE
Application and Integration Services
Application and Integration Services
is responsible for the configuration,
development, maintenance and support
of the suite of bespoke and commercial
enterprise software applications used
by the Blood Service, including Blood
Management, Transplant and Laboratory
Information Systems. The team also manages
the enterprise data warehouse and related
systems, application and data integration
services, and intranet and internet services.
Business Analysis, Validation and Service
Management
Business Analysis, Validation and Service
Management is responsible for activities
relating to the analysis of business
requirements, testing and validation, and
the management of information security
and risk management. This team also
manages the Information Technology quality,
documentation, change, configuration
and release processes, as well as service
performance.
Mr Mark Gardiner
Executive Director,
Information Services and
Chief Information Officer
Information and data critical to ensuring
the safe and efficient supply of blood
and blood products across Australia
has never been more secure, following
a comprehensive test of the disaster
recovery processes for the National
Blood Management System (NBMS).
This testing was conducted by the
Information Services (IS) division,
supported by the Manufacturing, Donor
Services and Medical, Quality and
Transplantation Services divisions.
Replicating the possible effects of a
system outage, teams of technology
specialists at different locations across
Melbourne switched the live system
into a disaster recovery environment
and back to the main production
environment in less than eight hours.
Executive Director of Information
Services, Mr Mark Gardiner, said the
successful test was made possible
through the cooperation of all divisions
of the Blood Service.
“This was a great outcome for the Blood
Service. In the event of a failure of the
NBMS, we can confidently move to
the disaster recovery environment and
ensure ongoing access to this critical
system,” he said.
“Risk mitigation is one of the main
drivers of the IS division and the fact
that we were able to successfully
execute this test in around eight hours
is a big win for the Blood Service. It
means the NBMS and the vital data it
holds have never been safer.”
Mr Gardiner said a key focus of the year
had also been the implementation of an
End User Technology Program, which
aims to upgrade desktop applications,
replace old hardware and introduce
new communication tools. As part of
the program, the division is replacing
more than 1,700 ageing computers to
improve efficiency and reduce power
consumption across the organisation.
With an investment of $1.9 million,
the program is expected to achieve
substantial savings for the Blood
Service. It will increase the reliability of
staff computers, standardise desktop
applications and introduce new
collaborative tools that allow staff to
communicate more effectively within
and across multiple locations.
centre replacement for the Pirie Street
site in Adelaide.
“In the IS division we are committed to
delivering whole-of-organisation solutions
to ensure the best and most efficient use
of technology for all Blood Service staff,
which in turn will drive future efficiencies
to ultimately benefit the Australian
public.”
“The End User Technology Program is
a great strategic initiative that consists of
five major work streams including basic
software upgrades, sophisticated business
applications upgrades and training,” Mr
Gardiner said.
“It represents a significant investment
that is allowing us to upgrade supporting
technologies to meet the current and
future desktop needs of staff.”
The IS division initiated more than 50
projects throughout the year, including
partnering with Donor Services to
update the National Contact Centre
systems to enable contact centre staff
to enhance their communications with
donors and potential donors.
“We worked closely with Donor
Services to upgrade the technology
at the National Contact Centre with
applications that provide staff with caller
details and profiles, such as how often
donors like to donate and their preferred
donation centre. This allows staff to
deal with them in a more personalised
way, thereby enhancing the donor
experience,” said Mr Gardiner.
Other notable projects delivered in the
past year include the hardware refresh
for the FAIMS Oracle financial system,
and the delivery of five collection site
relocations, including the Regent Street
ANNUAL REPORT 2012/13
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Manufacturing
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The division is
committed to
maintaining and
enhancing our
reputation as an
efficient and reliable
manufacturer of
quality blood and
blood products.
The Manufacturing Division, through national
and state-based operations, manages and
delivers processing, inventory control, testing,
customer The Manufacturing Division, through
national and state-based operations, manages
and delivers processing, inventory control,
testing, customer service and distribution
services to meet patient demand for blood
and blood products. The division is committed
to maintaining and enhancing our reputation
as an efficient and reliable manufacturer of
quality blood and blood products.
Regional Manufacturing
State Manufacturing delivers our main blood
processing and testing functions in New South
Wales, the Australian Capital Territory, Victoria,
Tasmania, South Australia, Queensland, West
Australia and the Northern Territory across
four processing centres. Each of the statebased Processing Centres has three functional
streams:
•
National Manufacturing
National Manufacturing provides leadership
and governance and facilitates the integration
of activities with other divisions. This
coordination of activities is managed by three
functional areas:
•
Processing and Testing provides services
to enable the execution
of change management within
the division.
•
Supply Chain oversees planning to
ensure that demand, supply, and related
products and services are effective and
timely. This group also drives productivity
and asset utilisation.
•
The Customer Service team aims to
drive improved levels of service delivery,
manage customer issues and develop a
standardised partnership model with
Approved Health Providers.
•
•
Customer Service Delivery efficiently and
effectively delivers on time and in full
the required supply of blood and blood
products to our customers.
Processing and Testing efficiently and
effectively produces blood and blood
products to meet the demand of our
customers.
Manufacturing Services maintains the
efficient running of processing centres on
a day-to-day basis.
Mrs Jacqui Caulfield
Executive Director,
Manufacturing
Supplies of blood and blood products
to patients around Australia have
never been more secure, with the
Manufacturing division of the Blood
Service this year achieving record
levels of red cell order fulfilment rates.
According to the Executive Director
of the Manufacturing division Ms
Jacqui Caulfield, this year the Blood
Service achieved a red cell inventory
within sufficiency bands for a total of
254 days, the best performance ever
achieved.
“The amount of days red cell inventory
was below the sufficiency bands was
27, compared to 118 last year and 152
the year before,” Ms Caulfield said.
“This year has been unlike any other
year for inventory. Thanks to the
response of our blood donors and the
efforts of the Inventory Response team,
our results represent an outstanding
success for the Blood Service.
“We also achieved a 95 per cent order
fulfilment rate for red cells which
represents a ten per cent improvement
on two years ago, due to the integrated
management of collections and
manufacturing which ensured that we
had a more constant inventory across all
blood groups.”
She also said the division achieved record
customer satisfaction rates supported by
the Blood Service staff making more than
150 customer visits during the year, a
marked improvement from the 21 visits
made when the program began in 2010.
“At the same time we achieved an
overall customer satisfaction rate of 8.6
out of 10, with some customers giving
us 10 out of 10, after making a rigorous
and dedicated effort to understand the
needs of our customers. While there is
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ANNUAL38
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AUSTRALIAN RED CROSS BLOOD SERVICE
always room for improvement we feel
this is a wonderful achievement.”
Ms Caulfield also said that the
Manufacturing division had achieved
a nine per cent improvement in
processing efficiency upon last year
and an 11 per cent improvement in
testing efficiency due to the successful
transition of both work streams from
Adelaide to the Melbourne Processing
Centre.
She said that while the shift had been
a complex transition, it had been
managed successfully to provide value
for stakeholders and value for money
and she praised the staff of the division
for their flexibility and patience during
the move.
She said the aim of the “standard work”
concept would eventually allow teams in
each processing centre across Australia
understand and adhere to nationally
consistent manufacturing processes.
“During the year we also introduced
specific efficiency training and Rapid
Improvement Events, whereby staff
from all levels can get involved in
looking at ways to improve processes to
increase efficiency and promote reliable
practices,” Ms Caulfield said.
“This has been an outstandingly
successful year and I hope all of the
staff in the Manufacturing division
feel a great sense of pride in what
we have achieved.”
Another particular highlight, she said,
was the work done within the division to
manufacture blood products that could
help limit the risk of Transfusion Related
Acute Lung Injury (TRALI).
“In January we attained supply of 100
per cent male clinical plasma, the first
month where all clinical plasma issued to
hospitals came from male donors. Male
only supply of our clinical plasma is a
risk mitigation against the risk of TRALI”.
“This was a wonderful achievement and
was made possible through a multidisciplinary effort between ourselves,
Information Services, Donor Services,
Medical Services and Corporate Strategy
and Performance.
Ms Caulfield said a number of new
initiatives designed to increase
productivity and safety had been
launched during the year including
the design and distribution of charts
and graphics which depict standard
manufacturing processes, including
the time required to undertake specific
processes.
ANNUAL REPORT 2012/13
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Medical,
Transplantation
AND Quality Services
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The Medical, Transplantation and Quality
Services Division supports the Blood Service
by providing medical services, transplantation
services, quality and regulatory services.
Medical Services
The division provides
clinical oversight of
both donor and
patient safety relating
to blood and tissue
products, and
maintains our critical
relationship with the
Therapeutic Goods
Administration.
Medical Services oversees the operations of
five areas:
• Clinical Leadership Team and Pathology
Services supports optimal transfusion
outcomes for patients by promoting safe
and appropriate transfusion practice
through expert clinical and scientific
advice, education and research.
• Medical Services Regional Teams are
responsible for overseeing donor safety on
a day-to-day basis, the provision of staff
immunisation programs and look-back
programs. The team is also responsible for
providing transfusion medicine support in
partnership with our transfusion medicine
specialists.
• Donor and Product Safety Policy Unit is
responsible for maintaining our existing
donor safety policies, developing new
donor safety initiatives and proactively
planning for blood product safety
improvements consistent with international
best practice, regulatory requirements and
community expectations.
• Transfusion Clinical Governance Unit
has a lead role in the implementation of
government and Blood Service transfusionrelated policy and governance. The key
objective is to support optimal outcomes
for patients through the development of
policy and practice.
• Medical Education Unit provides learning
opportunities for both internal and external
stakeholders. The key objectives are the
support of optimal outcomes for patients by
improved understanding of Blood Service
products, and the promotion of appropriate
transfusion practices and clinical practice
through education.
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AUSTRALIAN RED CROSS BLOOD SERVICE
National Transplantation Services
National Transplantation Services provides
diagnostic clinical transplantation compatibility
testing and immunogenetics testing and
granulocyte/platelet immunobiology services.
These tertiary laboratory services provide
detailed consultative support, in partnership
with our pathologists and transfusion
medicine specialists, to clinicians in hospitals.
Transplantation Services also hosts a number of
Commonwealth-funded national transplantation
agencies, including the Australian Bone
Marrow Donor Registry and the National Organ
Matching System. Other services provided
include the Victorian Organ and Tissue
Donation Agency (DonateLife Victoria) and
the developmental project for the Rotary West
Australian Cord Blood Bank facility.
Quality and Regulatory Services
Quality and Regulatory Services oversees
three key areas:
• Quality Services Regional Teams are
responsible for managing local quality
system activities such as document control,
change management, validation, processrelated recalls and the provision of quality
systems training. These teams are also
responsible for managing the internal audit
program for all facilities and processes, and
supporting responses to Therapeutic Goods
Administration audits.
• Regulatory Affairs Team is responsible for
managing the relationship between the
Blood Service and the Therapeutic Goods
Administration. In addition to maintaining
the Blood Service Technical Master File,
the team is responsible for monitoring and
interpreting regulations.
• Quality Systems Development Team is
responsible for the design, development
and improvement of national quality
management systems and processes.
The team is also responsible for the
management of quality system databases
and validation activities.
Dr Joanne Pink
Executive Director,
Medical, Transplantation and Quality
Services and Chief Medical Officer
The Medical, Transplantation and Quality
Services (MTQS) division this year
dramatically expanded the Blood Service’s
on-line tools to improve blood transfusion
knowledge and practice, introduced an
electronic system which reduced waiting
times for patients needing therapeutic
venesection and completed research into
the organisation’s sexual activity-based
deferral guidelines.
Executive Director Dr Joanne Pink said
the past year had seen the MTQS Division
deliver some outstanding achievements
for the Blood Service including
undertaking record rates of testing and
matching for organ donations, influencing
changes in transfusion practice and
creating strong links between the Blood
Service and the wider health sector via
the transfusion.com.au website.
“Given that each patient requiring blood
or blood products has a unique set of
circumstances, we have been working
to provide easily accessible information
to give health professionals a broader
understanding of transfusion medicine
thereby supporting the shift in focus from
appropriate use of blood components to
appropriate patient management,” she said.
“As part of this the Blood Service
developed a number of new Patient Blood
Management (PBM) resources including
adding a new library to the transfusion
website, expanding the iTransfuse Online
Learning centre and developing a number
of Apps suitable for iPhone, iPad and
web browsers.”
Dr Pink said some of the new technology
included Apps to test transfusion-related
knowledge, a game-based App to provide
education in the basics of blood grouping
and compatibilities and the expansion
of the mytransfusion website specially
developed for patients.
“These have all been designed to improve
transfusion knowledge both within the
medical profession and the public which
we believe have the potential to improve
patient outcomes,” she said.
One of the stand-out successes of the
year was also the introduction of an
electronic referral system for patients who
need to have blood taken for therapeutic
reasons, such as those with genetic
haemochromatosis and polycythaemia
rubra vera.
Replacing an inefficient and labourintensive paper-based method of referrals
and appointments, the new electronic
system has reduced patient waiting times
from referral to appointment from twelve
weeks to two days.
“The new application assists referring
doctors by providing real-time notification
of whether their patients are eligible for
therapeutic venesection by the Blood
Service. There are now over 1500 doctors
registered with the app and we are
receiving between 10 and 30 referrals
each day,” Dr Pink said.
“We have also conducted a major
information campaign to inform general
practitioners of the new service and all
this wonderful work has not only reduced
patient waiting times but has made our
service more cost efficient. ”
Our Quality team has worked on
redefining its identity, which is based
on proactively managing risk. Dr Pink
said that based on these principles a
comprehensive and consistent approach
to the validation of all blood service
equipment, systems, processes and
facilities that meets both the requirements
of the new code of GMP as well as
business needs has been implemented.
She said that significant progress has
been made with the redesign of our
quality systems to ensure they are
effective, efficient and compliant.
Dr Pink said that the division had also
reviewed the findings of an on-line,
anonymous survey of blood donors
to determine if sexual activity-based
donation deferrals should be reduced
from 12 months to six months.
She said 30,274 donors had taken part in
the survey with the results showing a high
level of donor compliance and honesty
in completing the donor screening
questionnaire, in line with similar studies
conducted in the United States, Canada
and the United Kingdom.
A submission has now been put
to the Government requesting the
reduction of deferral periods which is
under consideration. Dr Pink said the
Transplantation Services staff within
the MTQS division also deserved praise
and recognition for their efforts to
meet the increasing workload in the
laboratories conducting tissue typing and
crossmatching for organ donations.
She said that Australia’s official organ
donor rates had increased to record
levels during the year with 119 donors in
the first quarter of 2013, a 55 per cent
increase on the same time last year.
“Our laboratories are now receiving
requests for testing for multiple organ
donations at one time, which was once a
rare event,” she said.
“Most of our processes were designed
to test and type one donor at a time but
we have now introduced new testing
processes to reduce the time taken to
perform donor testing and matching.
“We are very proud of this work as well as
all the key achievements that our division
has been able to deliver this year for the
benefit of our donors and patients across
the country.”
ANNUAL REPORT 2012/13
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Research and
Development
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
Clinical Research works to ensure the
safety, efficacy and appropriate use of blood
products through direct participation and/or
collaboration with other research groups in
human clinical trials, development, analysis
and linkage of clinical registries and other
blood product patient-related research.
53
Statement of financial position
Donor and Community Research
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
Donor and Community Research focuses on
ensuring there are adequate collections to
meet clinical demand, a key requirement of
the Blood Service. This Research Program
examines donor safety, retention, recruitment,
motivation and community attitudes to blood
and plasma donation. The major aim of the
Donor and Community Research Program is to
provide research outcomes that contribute to
88
Australian Red Cross
90
Contact details
A strong emphasis
is placed on
translational
research that
could ultimately
lead to improved
operational
procedures or
changes in
clinical practice.
The Blood Service’s Research and
Development division aims to create and
translate unique, world class knowledge in
blood transfusion-related research that will
inform and improve our core activities, thereby
ensuring the sufficient supply of safe and
cost-effective blood and blood products.
Research and Development at the Blood
Service focuses on building relationships
with current and future donors, maintaining
the safety and quality of blood products,
enhancing knowledge of transfusion and
improving practice. A strong emphasis is
placed on translational research that could
ultimately lead to improved operational
procedures or changes in clinical practice.
marketing campaigns, organisational policies
and broader public health issues to promote
an appropriate increase in donations.
Applied and Developmental Research
Innovation and Development
Applied and Developmental Research focuses
on evaluating novel technologies that have the
potential to improve the quality and safety of
products manufactured by the Blood Service,
as well as improving operational efficiency
and donor wellbeing. Research teams work
closely with aligned Blood Service divisions
and other leaders in transfusion technology
and research.
Innovation and Development provides
management and administrative support
to the Research and Development Division
with the aim of enhancing our research
programs through the provision of project
management and business planning,
reporting and management support, contract
advisory services and the development of
new processes and procedures. In addition,
Innovation and Development aims to develop
and manage new research and/or business
opportunities that may arise from Deed and
non-Deed activities, both internally and
externally, including the provision of testing
services to external organisations and the
supply of blood and blood products for
research, teaching and other related purposes.
Clinical Research
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ANNUAL 42
REPORT 12/13
AUSTRALIAN RED CROSS BLOOD SERVICE
Transfusion Science Research
Transfusion Science Research aims to
generate knowledge using leading-edge
research which can be translated into
improved operational procedures or changes
in clinical practice. Our research areas
include, but are not restricted to, physiology
of the reticuloendothelial and circulatory
systems, including regulation of cellular
function and the coagulation system,
transfusion pathophysiology (including
immunobiology) and molecular diagnostics.
The Research and Development division
also includes library services and general
administration, including ethics support.
Dr David Irving
Executive Director,
Research and Development
Research and Development (R&D) had
a strong year in 2012/13. Translation
of research, some of which had been
underway for many years, was a strong
focus. Finishing the year almost exactly
on budget, the division was in the process
of translating outcomes from its frozen
blood, donor motivation and foetal DNA
detection research projects into Blood
Service operational practice.
Investigating the likely success of a
registry of lapsed donors who are willing
to be called upon in times of need,
researching the efficacy of platelets that
have been stored frozen and analysing
the effects of blood-derived serum eyedrops were just some of the research
projects successfully undertaken by the
division this year.
Managed by staff within the R&D division
until the transfer of this function to Medical,
Transplantation and Quality Services in
June, 2013, services provided by the Blood
Service to external organisations raised
more than $1.3 million for the financial year,
a significant increase from the expected
target of $1.05 million.
Researchers in the division also won
international accolades and attracted
external research grant funding of close to
$200,000. For example, Research Fellow
Dr Helen Faddy appeared on the ABC
TV science show “Catalyst” to discuss
research towards the development of a
novel diagnostic test for dengue virus
in blood.
Executive Director Dr David Irving said all
these achievements had won the strong
endorsement of the external Research
Advisory Committee, particularly for the
progress made by the division in creating
strong strategic alignments between
Blood Service researchers and the
broader Australian blood sector.
“This has been an exciting year in the
R&D division, particularly in terms of the
breadth of our research projects that
range from understanding community
attitudes to blood donation to very
sophisticated science around blood and
blood products,” Dr Irving said.
Translation of our research has been
a strong theme this year. The
non-invasive prenatal analysis (NIPA)
assay, which was developed by Dr Cate
Hyland and her team in the Brisbane
R&D laboratories, and which determines
the RhD status of a foetus potentially
at risk of severe anaemia, is in the final
stages of translation. A cross-divisional
project team, including R&D staff,
has been working towards transferring
this assay to Manufacturing. A major
milestone was achieved when the assay
was included in the recent successful
National Association of Testing Authorities
(NATA), Australia accreditation of the
Brisbane Manufacturing laboratories.
R&D also worked closely with
manufacturing staff in Sydney this year,
to optimise settings on the Blood Service’s
new blood processing platform, known as
the MacoPress Smart. The MacoPress is
now in routine use in all blood processing
centres.
“In the Donor Registry project, our work
indicated that a conversion rate that
is four times higher than that normally
expected could be achieved for long-term
lapsed donors who were invited to join a
registry where they would be contacted
only in times of greater need.
“We believe that capturing this group of
donors who would otherwise be lost, could
have a big impact upon blood supplies
in times of high demand and we are now
working with Donor Services to investigate
setting up such a registry.”Dr Irving
said the division was again recognised
both nationally and internationally.
For example, Senior Research Fellow
Dr Lacey Johnson won a prestigious
award (the Australian & New Zealand
Society of Blood Transfusion Presidential
Symposium award) for a conference
presentation on platelet recovery following
cryopreservation.
“Other Blood Service researchers have
been asked to present their work at local
and international scientific meetings,
and this year the University of Sydney
awarded a PhD scholarship to Blood
Service R&D staff member, Ms Rhiannon
McBean to carry out a project aimed
at characterising a certain rare red cell
blood group at a molecular level.
Dr Irving said that within the Clinical
Research program, data from the serum
eye-drops project had been collated with
results showing a strong acceptance of
this treatment by patients suffering from
dry eye syndrome.
“This study has received international
recognition and the Research Program
Leader, Dr Hugh Capper, was invited to
speak about the study at an ophthalmology
conference in Germany,” Dr Irving said.
“This in turn resulted in a number of
requests from international organisations
to establish collaborations with the
Blood Service R&D Division, which is
very satisfying. Dr Irving also said the
R&D Division had been proud this year
to welcome two international Research
Fellows from China and India who sourced
their own funding to allow them to work
alongside Blood Service staff in the
Brisbane R&D laboratories.
“Their desire to work with us points to the
fine research we are doing and our strong
links with universities in Australia and other
blood services abroad,” Dr Irving said.
ANNUAL REPORT 2012/13
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THANK YOU FOR
SAVING JASMINE’S LIFE
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Carolyn Patrick had no idea that the
majority of donated blood helped cancer
patients until it was blood that saved her
daughter’s life.
Carolyn’s daughter Jasmine received 20
units of red cells and platelets as part
of her treatment for medulloblastoma
(brain cancer). Jasmine’s diagnosis
came in 2009 when she was six years
old. She endured six months of intensive
chemotherapy, during which she needed
both red cells and platelets so that her
body could sustain the treatment.
Carolyn was amazed by the
difference that the blood made
to Jasmine and other children
in her ward. “It was an eye
opening experience. You would
see all the other kids who
needed the treatments on an
ongoing basis,” she said.
Her daughter’s experience showed
Carolyn the importance of donated blood
and, as a result, Carolyn is now a
registered blood donor. She found
out that donating is simple and
encourages others to give it a go.
“My first donation was very easy.
Not painful at all. I don’t think
donors actually realise how special
what they’re doing is until they see
it first hand,” she said.
Every year Australia needs over 1.35
million donations. You can help by
dedicating one hour of your time to
roll up your sleeves and help someone like
Jasmine. Your donation really will mean a
life-time to someone else.
Watch Jasmine, Daniel and Carolyn thank
you youtube/redcrossbloodau
“They’re so flat beforehand and really
tired. Then all of a sudden it was like a
big rush of life. Sometimes Jasmine would
sit up and say, ‘can I do some colouring
in now?’ You can immediately see the
difference the blood makes.”
Inspirational Jasmine remained strong
throughout her treatment which even
required her to learn to walk and talk
again. The bubbly, friendly nine year old
is certainly a fighter and is now doing so
well that she recently received her yellow
belt in karate.
Carolyn and Jasmine.
Jasmine and her brother Daniel.
44
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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FINANCE REPORT
From the Chief Executive and Chief Financial Officer
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
The Blood Service’s Main Operating Program generated an operating surplus of $12.5
million. Of this, $8.9 million was returned to government, leaving an audited program
surplus of $3.6 million. Outside of the Main Operating Program, non-cash accounting
items such as an increase in blood inventories ($13.9 million) and actuarial gains on
defined benefit plan obligations ($6.0 million) contributed to the total reported surplus
of $31.1 million.
SUMMARY
Surplus of main operating program (retained)
Surplus of capital programs
2013 $’000
2012 $’000
3,608
5,000
46,676
48,368
Finance
Surplus of external and hosted services
1,050
1,554
34
Human Resources
Surplus on processing centre programs
7,287
9,278
36
Information Services
(45,375)
(38,797)
Provision for employee entitlements
(4,031)
(6,184)
38
Manufacturing
Transfer from special purpose funds
-
16,895
40
Medical, Transplantation
and Quality Services
(Loss)/gain on disposal of non-current assets
(652)
2,006
13
(1)
42
Research and Development
Increase/(decrease) in blood and
blood product inventory
13,915
(194)
44
Thank you for saving Jasmine’s life
Movement in retirement benefit plan obligations
(excluding actuarial losses)
2,592
336
46
Finance Report from the Chief Executive and Chief Financial Officer
Actuarial gain/(loss) on retirement benefit
plan obligations
6,021
(8,599)
50
Independent Auditor’s report
31,104
29,662
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Depreciation charge
Gain/(loss) on foreign exchange
Surplus for the year
|
ANNUAL46
REPORT 12/13
AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
47
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FINANCIAL HIGHLIGHTS
Key figures for 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Main Operating Program is the largest program of the Blood Service and relates to the
collection, testing, manufacturing and distribution of blood and blood-related products
to the Australian health system. In 2013, the Main Operating Program financial result
was a surplus of $12.5 million and we have returned $8.9 million to government
resulting in an audited surplus of $3.6 million (2012 retained surplus: $5.0 million).
During 2013, the Blood Service negotiated a new funding agreement with the National
Blood Authority and agreed on a revised set of output-based funding principles for the
next three-year funding cycle, commencing 2013/14.
Comparison of 2013 and 2012 results is as follows:
•
Government funded income
increased by $12.1 million or 2.2
per cent from the prior year primarily
due to indexation and through
changes in the supply mix of blood
products. Specifically, an increase
in income derived from the supply
of plasma for fractionation has offset
reduced demand for red cells.
•
Total staff expenses increased by 3.2
per cent from last year
•
Consumable expenses increased by
1.2 per cent despite the increase
in weighted collections by 4.4 per
cent. Cost of growth in apheresis
plasma collections was offset by
various supply chain efficiencies and
continued savings from successful
tendering and contract negotiations.
Capital programs relate to the funding received for the purpose of purchasing assets and
other capital items. The capital program resulted in a total investment of $38.7 million
for the year. The rate of capital expenditure increased in the later part of the year and is
expected to continue to increase throughout 2013/14. At this time, there is significant
allocation on investment initiatives such as new and refreshed donor centres, IT end
user technology upgrades and foundation systems such as Laboratory Information
Management System (LIMS).
Non-cash accounting movements relate to year-end accounting entries recorded by
the Blood Service in accordance with applicable accounting standards. In 2013 the
following items had a significant impact on the reported surplus for the year:
•
Increase in blood and blood product
inventories. The Blood Service
recognises all blood and blood
products as current assets, to be
measured at the lower of cost and
current replacement cost. This
includes all inventory held by the
fractionator, CSL Behring. In 2013,
the Blood Service has recorded an
increase in blood and blood product
inventory holdings of $13.9 million. Of
this movement, $9.5 million relates to
inventory held at CSL Behring where
there has been an increased level in
the minimum target inventory balance
and the remainder is a result of various
factors, including timing of inventory
movement, indexation and greater
levels of fractionated product held.
•
Improvement in defined
superannuation benefit obligations.
After significant deterioration of
superannuation fund assets caused
by the global financial crisis, the
investment returns for the year ended
30 June 2013 improved with an
actuarial gain recognised on retirement
benefit plan obligations of $6.0 million.
Output Based Funding Model (OBFM)
$19.2
$12.5
$14.2
$6.2
$8.9
$3.6
2010/11
48
|
2011/12
AUSTRALIAN RED CROSS BLOOD SERVICE
2012/13
2010/11 surplus $19.2 million with $14.2 million returned to government
2011/12 surplus $6.2 million
with $3.6 million returned to government (plus $4.75 million once off reduction in prices)
2012/13 surplus $12.5 million with $8.9 million returned to government
A full copy of the 2013 financial statements can
be found at donateblood.com.au
The Laboratory Information
Management system.
ANNUAL REPORT 2012/13
|
49
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04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
ANNUAL FINANCIAL
STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2013
50
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
STATEMENT OF FINANCIAL POSITION
Notes
2013
2012
$’000
$’000
As at
30 JUNE 2013
Notes
2013
2012
$’000
$’000
190,911
ASSETS
REVENUE
Government funding
CURRENT ASSETS
Operating – Commonwealth funded
487,669
478,925
Cash and cash equivalents
17.2
206,898
Operating – State funded
17,276
17,424
Trade and other receivables
6
8,502
7,128
Capital – Commonwealth and State funded
51,596
48,015
Inventories
7
69,409
55,061
556,541
544,364
284,809
253,100
8,179
9,643
10,506
24,454
575,226
578,461
Staff expenses
285,261
276,339
Consumables
103,680
102,416
Overheads
129,103
124,459
45,375
38,797
Trade and other payables
(2,006)
Borrowings
Provisions
Total government funding
Interest income
Other income
Total revenue
5.2
EXPENDITURE
Depreciation
Loss/(Gain) on disposal of non-current assets
652
(Gain)/Loss on foreign exchange
(Increase)/Decrease in blood and blood product inventory
Total expenditure
4
5.3
SURPLUS FOR THE YEAR
(13)
(13,915)
550,143
25,083
1
194
540,200
38,261
Items that will not be reclassified subsequently to profit or loss:
Others
-
-
-
-
Items that may be reclassified subsequently to profit or loss:
Actuarial gain/(loss) on retirement benefit plan obligations
14.3
Other comprehensive income/( loss) for the year
TOTAL PROFIT AND OTHER COMPREHENSIVE INCOME FOR THE YEAR*
6,021
6,021
(8,599)
(8,599)
(8,599)
31,104
29,662
6,021
Surplus of Main Operating Program
Surplus of Capital Programs
TOTAL PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR
8
345,288
336,637
345,288
TOTAL ASSETS
621,446
598,388
9
44,644
41,658
10
9,011
7,993
11
50,134
46,193
Prepaid government funds
12
60,019
58,529
Other liabilities
13
LIABILITIES
CURRENT LIABILITIES
Total current liabilities
431
420
164,239
154,793
NON-CURRENT LIABILITIES
Borrowings
10
79,666
88,624
Provisions
11
12,205
11,775
Retirement benefit plan obligations
14
6,318
14,931
Other liabilities
13
3,756
4,107
Total non-current liabilities
101,945
119,437
TOTAL LIABILITIES
266,184
274,230
NET ASSETS
355,262
324,158
5,000
15.1
245,052
232,678
48,368
Special reserve
15.2
55,078
48,165
8,337
10,832
Capital reserve
15.3
55,132
43,315
(26,878)
(53,438)
TOTAL EQUITY
16
355,262
324,158
46,676
Gain/(Loss) on foreign exchange
336,637
Total non-current assets
General reserve
3,608
(Loss)/Gain on disposal of non-current assets
NON-CURRENT ASSETS
Property, plant and equipment
EQUITY
*ANALYSIS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Surplus on Processing Centre Programs and other operating activities
Depreciation, movement in blood inventories, employee provisions, actuarial gain/loss on
retirement benefit obligations
Transfers from special purpose funds
Total current assets
15.4.2
-
16,895
(652)
13
2,006
31,104
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
(1)
29,662
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
52
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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STATEMENT OF CHANGES IN EQUITY
General
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
STATEMENT OF CASH FLOWS
Reserve
Special
Reserve
Capital
Reserve
Total
$’000
$’000
$’000
$’000
Notes
Balance at 1 July 2011
235,909
29,749
28,838
294,496
3 8,261
-
-
38,261
10
Corporate Governance
Surplus for the year
20
The Board
Actuarial loss on retirement benefit plan obligations
(8,599)
-
-
(8,599)
Total comprehensive income for the year
29,662
-
-
29,662
(32,893)
18,416
14,477
-
232,678
48,165
43,315
324,158
25,083
-
-
25,083
6,021
-
-
6,021
31,104
-
-
31,104
(18,730)
6,913
11,817
-
245,052
55,078
55,132
355,262
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Transfer between reserves
Balance at 30 June 2012
15, 16
Surplus for the year
Actuarial gain on retirement benefit plan obligations
14.3
Total comprehensive income for the year
Transfer between reserves
Balance at 30 June 2013
15, 16
The above statement of changes in equity should be read in conjunction with the accompanying notes.
FOR THE YEAR ENDED
30 JUNE 2013
Notes
- Main Operating Program
- Capital Programs
Payments to suppliers and employees (inclusive of goods and services tax)
Net cash inflows from operating activities
17.1
$’000
576,795
569,705
56,756
48,018
(572,971)
(563,515)
60,580
54,208
(38,031)
(58,525)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
8
Proceeds from sale of property, plant and equipment
655
Interest received
435
8,179
Net cash (outflows) from investing activities
9,643
(48,447)
(29,197)
CASH FLOWS FROM FINANCING ACTIVITIES
-
24,400
(7,939)
Net cash (outflows) / inflows from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effect of exchange rate changes on cash held in foreign currencies
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
(6,926)
(7,470)
Repayment of borrowings
AUSTRALIAN RED CROSS BLOOD SERVICE
$’000
Receipts from government and other sources (inclusive of goods and services tax) for:
Proceeds from borrowings
|
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Interest paid
54
2013
(15,409)
(6,449)
11,025
15,974
16,786
190,911
174,126
(1)
13
17.2
206,898
ANNUAL REPORT 2012/13
190,911
|
55
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NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
2.2 Standards and Interpretations in issue but not yet effective
1. GENERAL INFORMATION
The Australian Red Cross Blood Service (the Blood Service) is a division of the Australian Red Cross Society (the Society) which is a not-forprofit entity. The Society is an entity incorporated in Australia by Royal Charter and is a member of the International Federation of Red Cross
and Red Crescent Societies.
At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.
The adoption of these Standards and Interpretations may have an impact on future financial reports.
Effective for annual
reporting periods
beginning on or after
Expected to be initially
applied in the financial
year ending
AASB 9 ‘Financial Instruments’, AASB 2009-11 ‘Amendments to Australian
Accounting Standards arising from AASB 9’ and AASB 2010-7 ‘Amendments to
Australian Accounting Standards arising from AASB 9 (December 2010)’
1 January 2015
30 June 2016
AASB 13 ‘Fair Value Measurement’ and AASB 2011-8 ‘Amendments to Australian
Accounting Standards arising from AASB 13’
1 January 2013
30 June 2014
The following new and revised Standards and Interpretations have been adopted in the current period.
AASB 12 ‘Disclosure of Interests in Other Entities’
1 January 2013
30 June 2014
Standards and Interpretations affecting the reported results or financial position
There are no new and revised Standards and Interpretations adopted in these financial statements affecting the reporting results
or financial position.
AASB 127 ‘Separate Financial Statements’ (2011)
1 January 2013
30 June 2014
AASB 119 ‘Employee Benefits’ (2011) and AASB 2011-10 ‘Amendments to
Australian Accounting Standards arising from AASB 119 (2011)’
1 January 2013
30 June 2014
Standards affecting presentation and disclosure
AASB 2011-4 ‘Amendments to Australian Accounting Standards to Remove
Individual Key Management Personnel Disclosure Requirements’
1 July 2013
30 June 2014
Amendments to AASB 101
‘Presentation of Financial
Statements’
AASB 2012-2 ‘Amendments to Australian Accounting Standards – Disclosures –
Offsetting Financial Assets and Financial Liabilities’
1 January 2013
30 June 2014
AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting
Financial Assets and Financial Liabilities’
1 January 2014
30 June 2015
AASB 2012-5 ‘Amendments to Australian Accounting Standards arising from Annual
Improvements 2009–2011 Cycle’
1 January 2013
30 June 2014
AASB 2012-10 ‘Amendments to Australian Accounting Standards – Transition
Guidance and Other Amendments’
1 January 2013
30 June 2014
The Blood Service is domiciled in Australia, with its corporate office at 417 St Kilda Road, Melbourne, Victoria and operates in all States and
Territories. The principal activity of the Blood Service is the provision of quality blood products, tissue typing and related services for the
benefit of patients. The Blood Service operates four main processing and testing facilities plus a network of collection centres in metropolitan
and regional areas across Australia. The Blood Service is funded for this activity by the Commonwealth, State and Territory governments
under a Deed of Agreement (the Deed) administered by the National Blood Authority (NBA).
2. ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS
2.1 Standards and Interpretations affecting presentation and disclosure in the current period (and/or prior periods)
Amendments to AASB 101
‘Presentation of Financial
Statements’
56
|
The amendment (part of AASB 2011-9 ‘Amendments to Australian Accounting Standards – Presentation
of Items of Other Comprehensive Income’) introduces new terminology for the statement of comprehensive
income and income statement. Under the amendments to AASB 101, the statement of comprehensive
income is renamed as a statement of profit or loss and other comprehensive income and the income
statement is renamed as a statement of profit or loss. The amendments to AASB 101 retain the option to
present profit or loss and other comprehensive income in either a single statement or in two separate but
consecutive statements. However, the amendments to AASB 101 require items of other comprehensive
income to be grouped into two categories in the other comprehensive income section: (a) items that will not
be reclassified subsequently to profit or loss and (b) items that may be reclassified subsequently to profit or
loss when specific conditions are met. The amendments have been applied retrospectively, and hence the
presentation of items of other comprehensive income has been modified to reflect the changes. Other than
the above mentioned presentation changes, the application of the amendments to AASB 101 does not result
in any impact on profit and loss, other comprehensive income and total comprehensive income.
Standard/Interpretation
The directors anticipate the adoption of these standards and interpretations in future periods will have no material impact on the financial
statements of Australian Red Cross Blood Service.
The amendments (part of AASB 2012-5 ‘Further Amendments to Australian Accounting Standards
arising from Annual Improvements 2009-2011 Cycle’) requires an entity that changes accounting policies
retrospectively, or makes a retrospective restatement or reclassification to present a statement of financial
position as at the beginning of the preceding period (third statement of financial position), when the
retrospective application, restatement or reclassification has a material effect on the information in the third
statement of financial position. The related notes to the third statement of financial position are not required
to be disclosed.
AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.5 Rounding of amounts
Amounts in the financial report have been rounded off to the nearest thousand dollars ($’000) unless otherwise stated.
The Board
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated.
3.6 Property, plant and equipment
22
The Executive
3.1 Statement of compliance
24
Property, plant and equipment is stated at historical cost less depreciation and any impairment losses. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
For the purposes of these financial statements, the Blood Service is a not-for-profit entity. These financial statements are general purpose
financial statements which have been prepared in accordance with the Accounting Standards and Interpretations, and comply with
other requirements of the law. Due to the application of Australian specific provisions for not-for-profit entities, this financial report is not
necessarily compliant with International Accounting Standards.
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
The financial report has been prepared on an accruals basis and is based on historical cost, except for the revaluation of certain
non-current assets and financial instruments on which the fair value basis of accounting has been applied. Cost is based on the fair values
of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. The financial
report has been prepared on a going concern basis.
38
Manufacturing
3.3 Critical accounting estimates and judgements
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
In the application of the International Accounting Standards and the Blood Service’s accounting policies, management is required to make
judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.
The estimates and judgements are based on historical experience and various other factors that are considered to be reasonable and
relevant under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed
on an on-going 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.
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
The financial statements were authorised for issue by the Board of the Australian Red Cross Blood Service on 30 September 2013.
3.2 Basis of preparation
Judgements made by management in the application of the International Accounting Standards that have significant effects on the financial
statements and estimates with a significant risk of material adjustment to the carrying amounts of assets and liabilities within the next
financial year are disclosed, where applicable, in the relevant notes to the financial statements.
3.4 Foreign currency translation
3.4.1 Functional and presentation currency
Items included in the financial statements of the Blood Service are measured using the currency of the primary economic environment in
which the Blood Service operates (the functional currency). The financial statements are presented in Australian dollars, which is the Blood
Service’s functional and presentation currency.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Blood Service and the cost of the item can be measured reliably.
The carrying amount of any replaced parts is derecognised. All other repairs and maintenance are charged to the surplus or deficit during
the reporting period in which they are incurred.
Intangible assets with finite lives are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is
recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at
the end of each reporting period, with the effect of any change in estimate being accounted for on a prospective basis.
Depreciation is provided on property, plant and equipment, including leasehold buildings but excluding freehold land. Depreciation is
calculated using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful
lives. Depreciation rates applied in 2013 were:
Period
Rate
Freehold buildings
40 years
2.5%
Leasehold improvements
Shorter of lease period or useful life
Computer equipment
4 years
25.0%
Plant and equipment
5 - 10 years
10.0% - 20.0%
Leased furniture, fittings and equipment
5 - 10 years
10.0% - 20.0%
4 years
25.0%
Motor vehicles
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains
and losses on disposals are determined by comparing the net proceeds with the carrying amount. These are included in the surplus or
deficit. Both freehold buildings and leasehold improvements are presented as part of Land & Buildings category – see note 8.
3.4.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of
monetary assets and liabilities denominated in foreign currencies are recognised in the surplus or deficit , except when they are deferred in
equity as qualifying cash flow hedges.
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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59
PREVIOUS PAGE
NEXT PAGE
NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
Non-current assets are not depreciated or amortised while they are classified as held for sale. These assets are presented separately from
the other assets in the statement of financial position.
50
Independent Auditor’s report
3.9 Borrowing costs
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
Borrowing costs directly attributable to the acquisition, construction or production of any qualifying asset are capitalised during the period
of time that is required to complete and prepare the asset for its intended use. Other borrowing costs are recognised in the surplus or deficit
in the period in which they are incurred. Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
54
Statement of changes in equity
3.10 Leases
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
3.10.1 Finance leases
Leases of property, plant and equipment where the Blood Service has substantially assumed all the risks and rewards incidental to
ownership are classified as finance leases – see note 8.2. Finance leases are capitalised at the lease’s inception at the fair value of the
leased property or, if lower, at the present value of the minimum lease payments. The corresponding rental obligations to the lessor, net of
finance charges, are included on the statement of financial position as a finance lease obligation. Each lease payment is allocated between
the liability and the finance cost. The finance cost is charged to the surplus or deficit over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
88
Australian Red Cross
90
Contact details
3.7 Impairment of assets
At each reporting date, Blood Service management reviews the carrying values of property, plant and equipment to determine whether
there is any indication that these assets have suffered an impairment loss. If any such indicators exist, the recoverable amount of the asset
is estimated in order to determine the extent of the impairment loss, if any. An impairment loss is recognised for the amount by which the
asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and
‘value in use’. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial
assets that suffered an impairment are reviewed for possible part or full reversal of the impairment at each reporting date.
Future economic benefits of the Blood Service’s assets are not primarily dependent on their ability to generate net cash inflows and if
deprived of a particular asset, the Blood Service would replace the asset’s remaining future economic benefits. ‘Value in use’ calculations are
therefore determined as the depreciated replacement cost of each asset, rather than by using discounted future cash flows.
Depreciated replacement cost is defined as the current replacement cost of an asset less, where applicable, accumulated depreciation
calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The current
replacement cost of an asset is its cost measured by reference to the lowest cost at which the gross future economic benefits of that asset
could currently be obtained in the normal course of business.
3.8 Non-current assets classified as assets held for sale
Non-current assets are classified as assets held for sale and stated at the lower of their carrying amount and fair value less costs to sell if
their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded
as met only when the sale is highly probable and the asset is available for immediate sale in its present condition and the sale of the asset is
expected to be completed within one year from the date of classification.
An impairment loss is recognised for any initial or subsequent write-down of the asset to fair value less costs to sell. A gain is recognised
for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously
recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition.
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AUSTRALIAN RED CROSS BLOOD SERVICE
The property, plant and equipment acquired under finance leases are depreciated over the shorter of the estimated useful life of the asset
and the lease term.
3.10.2 Operating leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial
direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease
term on the same basis as the lease expense. Payments made under operating leases are recognised as an expense in the surplus or deficit
on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the benefit gained
from the lease.
3.10.3 Lease incentives
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate
benefits of incentives are recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more
representative of the time pattern in which economic benefits from the leased assets are consumed. The current amount refers to amounts
to be recognised in the surplus or deficit within the 12 months after the reporting date. The non-current amount will be recognised in the
surplus or deficit in subsequent financial years. Refer to note 13.
3.11 Inventories
Australian Accounting Standards require inventories of a not-for-profit entity to be measured at the lower of cost and current replacement
cost, where current replacement cost is defined as the cost the entity would incur to acquire the asset on the reporting date. The Blood
Service has the following categories of inventories:
3.11.1 Consumables
Consumables are used by the Blood Service in providing products and services, and are measured at the lower of cost and current
replacement cost. Consumables inventory has been valued at weighted average cost.
3.11.2 Inventories held for distribution
Australian Accounting Standards define inventories held for distribution by a not-for-profit entity as assets where they display three essential
characteristics as follows: (i) there must be future economic benefits; (ii) the entity must have control over the future economic benefits; and
(iii) the transaction giving rise to the entity’s control over future economic benefit must have occurred.
The Blood Service provides products and services in accordance with the Deed. In the discharge of this agreement, the Blood Service is
responsible for a range of activities, including collection, testing, processing, inventory management and distribution of blood and blood
products. In this context, the Blood Service recognises blood and blood products as current assets, to be measured at the lower of cost and
current replacement cost. Cost comprises direct materials, direct labour and overheads of the operating divisions incurred in the collection,
processing and testing of blood.
The Blood Service distributes the supply of fractionated plasma products in Australia. Plasma-derived products are manufactured by the
fractionator, CSL Limited. In relation to inventories held for distribution, the Blood Service has received legal advice that the ownership of
blood and blood products rests with the Blood Service. This includes the fractionated products held at CSL Limited.
The inventory valuation at the end of the reporting period includes:
– all blood and blood products held at the Blood Service ; and
– all plasma stock (various stages of production) and fractionated products held by the fractionator, CSL Limited.
Fresh product volumes are physically counted and valued as individual units. Fractionated product volumes are determined based on the
plasma content of each unit (vial) and valued based on weight. Plasma stock held at CSL Limited is also valued based on weight of the
plasma content in each unit (vial). All blood and blood products are valued at direct costs plus operating overheads.
ANNUAL REPORT 2012/13
|
61
PREVIOUS PAGE
NEXT PAGE
NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
For the statement of cash flows presentation purposes, cash and cash equivalents include cash on hand, deposits held at call with financial
institutions, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.
36
Information Services
3.14 Borrowings
38
Manufacturing
40
Medical, Transplantation
and Quality Services
All borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the
borrowing. After initial recognition, borrowings are subsequently measured at amortised cost using the effective interest rate method.
Amortised cost is calculated by taking into account any issue costs and any discount or premium on settlement.
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
3.12 Trade receivables
3.17 Employee benefits
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method,
less provision for impairment. Trade receivables are generally due for settlement within 30 days.
3.17.1 Wages, salaries, annual leave and long service leave
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, and long service leave when it is
probable that settlement will be required and they are capable of being measured reliably.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be unrecoverable are written off. A provision
for impairment of trade receivables is established when there is objective evidence that the Blood Service will not be able to collect all the
amounts due according to the original terms of the trade receivables. Significant financial difficulties of the debtor are considered indicators
that the trade receivable is impaired. The amount of the provision is the difference between the asset’s carrying amount and the present
value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not
discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the surplus or deficit.
3.13 Cash and cash equivalents
Gains and losses are recognised in the surplus or deficit when the liabilities are derecognised, as well as through the amortisation process.
Borrowings payable within 12 months are classified as current liabilities. Borrowings are classified as non-current where the Blood Service
has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
3.15 Trade and other payables
These amounts represent liabilities for goods and services provided to the Blood Service prior to the end of the financial year which are
unpaid. The amounts are unsecured and are generally due for settlement within 30 days of recognition.
3.16 Provisions
Provisions are recognised when the Blood Service has a present obligation (legal or constructive) as a result of past events, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation.
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at
the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. Provisions
include provisions for make good of property leases, annual leave and long service leave – see note 11.
3.17.1.1 Short-term employee benefit obligations
Liabilities for wages and salaries, annual leave and long service leave that are expected to be settled within 12 months are measured at their
nominal values based on the remuneration rate expected to apply at the time of settlement. The liability for annual leave and long service
leave is recognised under provision for employee benefits – see notes 3.16 and 11. All other short-term employee benefit obligations are
presented as payables – see note 9.
3.17.1.2 Long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the period in which
the employees render the related service is recognised in the provision for employee benefits. This is measured as the present value of
expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected
unit credit method – see notes 3.16 and 11.
Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and
currency that match, as closely as possible, to the estimated future cash outflows. Consideration is given to future wage and salary levels,
experience of employee departures and periods of service.
3.17.2 Retirement benefit obligations
The Blood Service contributes to various staff retirement plans to provide employees with benefits on death or retirement. The Blood Service
has defined benefit sections and defined contribution sections within these retirement benefit plans. The defined benefit sections provide
lump sum benefits based on years of service and final average salary. The defined contribution sections receive fixed contributions from the
Blood Service, and the Blood Service’s legal and constructive obligation is limited to these contributions.
3.17.2.1 Defined benefit superannuation plans
The Blood Service contributes to the following defined benefit plans: Local Government Superannuation Scheme (LGS Super) in
New South Wales and Australian Red Cross Queensland Staff Retirement Fund in Queensland. Contributions are expensed when incurred.
A liability or asset in respect of defined benefit superannuation plans is recognised in the statement of financial position, and is measured as
the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund’s assets at that date and
any unrecognised past service cost. The present value of the defined benefit obligation is based on expected future payments which arise from
membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit method. Consideration is
given to expected future wage and salary levels, experience of employee departures and periods of service.
Expected future payments are discounted using the market yields at the reporting date on national government bonds with terms to maturity
and currency that match, as closely as possible, to the estimated future cash outflows.
Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which
they occur directly in the surplus or deficit.
Past service costs are recognised immediately in surplus or deficit unless the changes to the superannuation fund are conditional on the
employees remaining in service for a specified period of time (the vesting period). In this case, the past services are amortised on a
straight-line basis over the vesting period.
62
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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63
PREVIOUS PAGE
NEXT PAGE
NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
3.17.2. Health Super defined benefit scheme
A number of Blood Service employees will receive defined benefit post-employment benefits from Health Super. Health Super is a
multi-employer plan, with a defined benefit plan component relevant to the Blood Service. Sufficient information is not available
to account for Health Super as a defined benefit plan as each employer is exposed to actuarial risks associated with current and former
employees of other entities. As a result there is no consistent and reliable basis for allocating the obligation, assets and cost to individual
entities. Therefore the Blood Service has adopted defined contribution accounting for these employees.
Based on the 30 June 2013 actuarial overview, the fund’s actuary has determined the notional surplus of net assets attributable to the Blood
Service’s employees in the defined benefit scheme as at 30 June 2013 are $0.043 million (2012 – $0.038 million shortfall). The surplus is
the difference between assets, valued at fair market value, and liabilities. Liabilities are determined to be the greater of the actuarial present
value of all future expected benefit payments accrued by members at the valuation date (present value of accrued benefits) and the benefit
that has vested to members at the valuation date (vested benefits).
The fund’s actuary has advised that the contribution rates will remain unchanged for the 2012-13 financial year.
3.17.3 Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary
redundancy in exchange for these benefits. The Blood Service recognises termination benefits when it is demonstrably committed to either
terminating the employment of current employees, according to a detailed formal plan without the possibility of withdrawal, or providing
termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after
statement of financial position date are discounted to present value and classified as non-current.
3.18 Income recognition
Income is measured at the fair value of the consideration received or receivable. Amounts disclosed as income are net of returns and
rebates. The Blood Service recognises income in accordance with AASB 1004 ‘Contributions’ when:
3.19 Income tax
The Blood Service, being a division of the Society and a charitable organisation, is exempt from income tax under subsection 50.5
of the Income Tax Assessment Act 1997.
3.20 Goods and Services Tax (GST)
Revenues and expenses are recognised net of the amount of GST except where the GST incurred on a purchase of goods and services
is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation
authority is included as part of receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and
financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
3.21 Fair value estimation
The fair value of financial assets and financial liabilities are estimated for recognition and measurement or for disclosure purposes.
The fair value of forward exchange contracts is determined using forward exchange market rates at the statement of financial position date.
The carrying value less impairment of trade receivables and payables are assumed to approximate their fair values due to their short-term
nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the
current market interest rate that is available to the Blood Service for similar financial instruments.
3.22 Derivatives and hedging activities
a) the Blood Service obtains control or the right to receive the contribution;
b) the amount of the contribution can be measured reliably; and
c) it is probable that the future economic benefits comprising the contribution will flow to the Blood Service.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their
fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is a hedging
instrument and, if so, the nature of the item being hedged.
Income is recognised for the following activities:
Forward exchange contracts held for hedging purposes are generally accounted for as cash flow hedges. The effective portion of changes in
the fair value of cash flow hedges is recognised in equity. The gain or loss relating to the ineffective portion is recognised immediately in the
surplus or deficit within other income or other expenses.
3.18.1 Output based funding
The Blood Service recognises income for the delivery of products to Approved Health Providers on an accrual basis representing the right to
receive the contributions from the NBA.
3.18.2 Government grants
Grants from governments are recognised at their fair value where there is a reasonable assurance that the grant will be received and the
Blood Service will comply with all attached conditions.
3.18.3 Interest income
Interest is recognised as it accrues using the effective interest rate method, which is the rate that discounts estimated future cash receipts
through the expected life of the financial instrument to the carrying amount of the financial asset.
3.23 Economic dependency
A significant portion of revenue is received by way of recurrent and capital grants from Commonwealth, State and Territory governments.
As at the reporting date, terms of the Deed with the NBA have been extended to 30 June 2014. It is the Blood Service’s expectation that
future funding arrangements will remain substantially unchanged beyond this date. Therefore, these financial statements are prepared
on a going concern basis.
3.18.4 Other income
The Blood Service receives other income, including research grants and revenue generated from the provision of some testing services and
products and services on a fee-for-service basis. Income is recognised on an accruals basis.
64
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
65
PREVIOUS PAGE
NEXT PAGE
NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
Notes
2013
2012
$’000
$’000
5.1.3 External and hosted services
The Blood Service also receives grants from the Commonwealth and State governments for the provision of transplantation services, tissue
typing, organ donor program and the Bone Marrow Registry.
4. Expenditure
The following expenses are included in the surplus for the year:
Wages and salaries
22
The Executive
Superannuation guarantee
24
Key performance indicators
Termination benefits
26
Organisation chart
28
Movement in retirement benefit plan obligations (excluding actuarial losses)
14.3
252,921
246,930
24,892
22,003
(2,592)
(336)
10,040
7,742
Total employee benefits*
285,261
276,339
Corporate, Strategy and Performance
Cost of consumables
103,680
102,416
Other overheads
100,056
95,325
30
Donor Services
Workers compensation costs
2,611
3,322
32
Finance
Minimum operating lease payments
Interest and finance charges paid on finance leases
34
Human Resources
Depreciation expense
36
Information Services
(Gain)/Loss on foreign exchange
8
Loss/(Gain) on disposal of non-current assets
18,966
18,886
7,470
6,926
45,375
652
38,797
(2,006)
Other operating activities
5.1.4
9,175
3,513
2,479
15,167
5.3
556,541
8,179
10,506
575,226
556,541
8,179
10,506
575,226
466,419
5,373
1,362
473,154
48,015
-
73
48,088
(13)
1
(13,915)
194
540,200
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
51,467
23,371
550,143
Statement of cash flows
485,221
5,650
Total expenditure
55
Total
2,506
-
Medical, Transplantation
and Quality Services
Statement of changes in equity
Other
4,666
-
40
54
Interest
478,049
51,596
263,861
Statement of financial position
Government
5.1.1
17,721
264,882
53
Notes
Main Operating Program
5.1.2
Total other expenses
Statement of profit or loss and other
comprehensive income
2013
5.1.3
Manufacturing
52
Revenue source $’000
Capital programs
38
Independent Auditor’s report
5.2 Revenues by programs
External and hosted services
(Increase)/Decrease in blood and blood product inventory
50
5.1.4 Other operating activities
Other operating activities predominantly consists of special grant funding for repayments of borrowings on the Sydney and Melbourne
Processing Centres. In addition, grants from the NBA were received for various business projects and initiatives such as the National Asset
Management System and Learning Management System. Interest revenue includes interest earned on Special and Capital Reserves and
unallocated prior year surplus. Other external revenue was received from external third parties and donations.
* Total employee benefits include non-capitalised expenditure for organisational restructure activities as follows:
– 2013: $3.466 million for the consolidation of Donor Services administration support
– 2012: $2.847 million for the closure of the testing and processing functions in South Australia
5. REVENUE AND RESULTS FROM FUNDED PROGRAMS
Total revenues by programs
Total revenue
2012
Main Operating Program
Capital programs
External and hosted services
17,837
-
4,530
22,367
Other operating activities
12,093
4,270
1,594
17,957
5.3
544,364
9,643
7,559
561,566
15.4.2
-
-
16,895
16,895
544,364
9,643
24,454
578,461
Total revenues by programs
5.1 Funded programs
The Blood Service’s funded programs are as follows:
5.1.1 Main Operating Program
The NBA co-ordinates and funds, on behalf of the Commonwealth, State and Territory governments, national arrangements between the
Blood Service and governments for the supply of blood and blood related products and services. These arrangements were formalised in
August 2006 under a Deed of Agreement (the Deed) between the NBA and the Australian Red Cross Society. The Deed has been extended
by a series of variations to 30 June 2014. From 1 July 2010, in accordance with an amendment to the Deed, the Blood Service transitioned
from being funded by the NBA on a grant basis to being funded on the basis of an Output Based Funding Model (OBFM). The OBFM
applies to three year funding cycles, the first cycle covering the financial years 2010-11 to 2012-13.
(129)
Transfers from special purpose funds
Total revenue
The current year government funding for the Main Operating Program of $478.049 million (2012: $466.419 million), is net of a provision to
return $8.908 million (2012: $1.197 million) to the NBA.
5.1.2 Capital programs
The arrangement with the NBA provides for capital funding up to 10% of the Main Operating Program funding for the financial year.
Capital funding is from State and Commonwealth governments and is recognised as revenue when the Blood Service obtains control of
the grant funds. Activities during the reporting period include minor on-going building work improvements which have continued to be
undertaken for the Melbourne Processing Centre (MPC) in 2012-13. Several donor centres were relocated in Victoria and New South Wales.
Garran (ACT) donor centre was refurbished and building work improvements were carried out on two additional donor centres in Western
Australia (Wellington Street and Midland). Two existing donor mobile units were refurbished during the period.
66
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
67
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
Notes
2013
2012
$’000
$’000
3,608
5,000
Notes
2013
2012
$’000
$’000
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
Surplus of Main Operating Program
20
The Board
Surplus of Capital Programs
46,676
48,368
Surplus of External and Hosted Services
1,050
1,554
22
The Executive
Blood and blood service products at the Blood Service
15,059
10,769
Surplus on Processing Centre Programs
7,287
9,278
Plasma and fractionated products at the fractionator, CSL Limited
32,772
24,114
(45,375)
(38,797)
(6,184)
5.3 Reconciliation of surplus for the year
Depreciation charge
24
Key performance indicators
26
Organisation chart
Transfer from special purpose funds
28
Corporate, Strategy and Performance
Gain/(Loss) on foreign exchange
8
Provision for employee entitlements
(4,031)
15.4.2
(Loss)/Gain on disposal of non-current assets
(652)
16,895
7.1 Inventory of blood and blood products
Work in progress at the Blood Service
1,124
1,086
Work in progress at CSL Limited
14,545
13,616
Total inventory of blood and blood products
63,500
49,585
2,006
13
14.3
7. INVENTORIES
(1)
30
Donor Services
Movement in retirement benefit plan obligations (excluding actuarial losses)
2,592
336
32
Finance
Increase/(Decrease) in blood and blood product inventory
13,915
(194)
Surplus for the year
25,083
38,261
34
Human Resources
36
Information Services
38
Manufacturing
Trade receivables
4,459
4,612
40
Medical, Transplantation
and Quality Services
Prepayments
4,043
2,516
Total trade and other receivables
8,502
7,128
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
Ageing of past due but not impaired trade receivables:
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
7.2 Consumables inventory
Total inventories
5,909
5,476
69,409
55,061
6. TRADE AND OTHER RECEIVABLES
6.1 Trade receivables
Trade receivables are non-interest bearing and are generally on 30-day terms for products and services provided to customers on a feepaying basis funded primarily by governments and hospitals, and to a smaller extent, by private patients.
Impaired trade receivables
Trade receivables are reviewed regularly for recoverability. Government and hospital debts are considered recoverable. Where debts are
assessed to be non-recoverable from private patients, these are written off in certain circumstances. The amount written off is not material
and there is no requirement for an allowance for doubtful debts at the end of the reporting period.
30 to 90 days
258
159
90 to 180 days
24
65
Over 180 days
6
4
288
228
Total amount of past due but not impaired trade receivables
68
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
69
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
Notes
Land &
buildings
Computer
equipment
Plant &
equipment
Leased
furniture
fittings &
equipment
Motor
vehicles
$’000
$’000
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
At 1 July 2011
28
Cost
100,847
56,130
73,283
30,434
15,499
Corporate, Strategy and Performance
Accumulated depreciation
(30,987)
(39,216)
(40,670)
(6,878)
(9,244)
30
Donor Services
69,860
16,914
32,613
23,556
6,255
32
Finance
Balance at 1 July 2011
69,860
16,914
32,613
23,556
34
Human Resources
Additions
25,823
2,142
29,368
67
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Net book amount
$’000
$’000
$’000
Work in
progress
(WIP)
Total
(929)
$’000
$’000
Computer equipment (including software)
174,790
450,983
174,790
(126,995)
323,988
6,255
174,790
323,988
1,853
12,212
71,465
)
(11,368
(20)
(9,596)
-
(823)
544
(166,748)
)
(38,797
Transfers from WIP
112,328
16,700
3,676
33,500
Depreciation charge
(13,201)
(11,263)
(10,207)
(1,974)
(2,152)
Closing net book amount
193,881
24,473
45,854
55,149
5,677
20,254
345,288
231,090
63,871
92,394
64,001
16,522
20,254
Accumulated depreciation
(37,209)
(39,398)
(46,540)
(8,851)
(10,846)
488,132
)
(142,844
Net book amount
193,881
24,473
45,854
55,150
5,676
20,254
345,288
93,881
24,473
45,854
55,150
5,676
20,254
345,288
5,018
5,508
13,483
-
736
13,286
-
29,930
-
94
-
(963)
-
(176)
558
-
368
-
At 30 June 2012
Cost
-
Year ended 30 June 2013
Balance at 1 July 2012
Additions
Reclassification to/from
8.4
Disposals
8.3
Transfers from WIP
(30,024)
(71)
(97)
(16,139)
38,031
-)
(1,307
-)
13,282
1,931
Depreciation charge
(10,489)
(11,347)
(16,564)
(5,253)
(1,722)
-
(45,375
Closing net book amount
171,597
20,468
72,298
49,897
4,976
17,401
336,637
219,249
70,604
128,764
64,001
15,438
17,401
515,457)
Accumulated depreciation
(47,652)
(50,136)
(56,466)
(14,104)
(10,462)
Net book amount
171,597
20,468
72,298
49,897
4,976
At 30 June 2013
Cost
70
|
$’000
$’000
AUSTRALIAN RED CROSS BLOOD SERVICE
The carrying amounts of the assets disclosed above include the following expenditure recognised in relation to property, plant and
equipment which are in the course of construction:
Freehold land and buildings and leasehold improvements
Year ended 30 June 2012
Disposals
2012
8.1 Work in progress
8. PROPERTY, PLANT AND EQUIPMENT
Notes
2013
-
(178,820
17,401
336,637
Plant and equipment
Donor Mobile Units
Total work in progress
358
12,784
14,723
6,120
887
963
1,433
387
17,401
20,254
In 2013, the computer equipment balance includes upgrades to several operating systems including the Laboratory Information Management
System-LIMS ($3.190 million), National Blood Management System-NBMS ($1.770 million) and Financial, Assets and Inventory Management
System-FAIMS ($1.640 million). In 2012, freehold land and buildings and leasehold improvements included $3.100 million and $3.800
million in relation to the development of Regent Arcade Donor Centre and Rotary WA Cord Bank respectively.
8.2 Leased assets
The net book value for leased furniture, fittings & equipment of $49.897 million (2012: $55.149 million), includes amounts relating to the
leasehold improvements for the processing centres in Queensland (2013: $20.864 million, 2012: $21.928 million) and Melbourne
(2013: $29.033 million, 2012: $33.221 million) which are funded through finance leases.
8.3 Asset disposals
During the reporting period, the Blood Service disposed of assets with a total written down value of $1.307 million, excluding proceeds.
This movement includes $0.524 million resulting from the disposals of assets during the national stocktake of operational assets which were
classified as ‘no longer held’. In addition, a prior year provision relating to assets that could not be located during 2010 was written back
subsequent to physical verification, with a $3.834 million net credit impact (Cost of $12.922 million and Accumulated depreciation
of $9.088 million). The net result was a gain on disposal for 2012 of $2.006 million.
8.4 Reclassification of Asset Categories
The national stocktake of operational assets in 2013 resulted in the category reclassifications of certain assets relating to major building
projects (Sydney Processing Centre and Melbourne Processing Centre). During the period, assets previously classified as ‘Land & buildings’
were individually identified and reclassified to the appropriate asset groups in the national fixed asset register. This process of transferring the
costs resulted in a movement from the ‘Land & buildings’ category of $30.024 million to other asset groups. These reclassification movements
have been disclosed separately under ‘Reclassifications to/from’ and resulted in an increment of depreciation expense of $1.816 million.
Of this total, $0.523 million relates to prior year’s depreciation expense which has been reported in this period’s total depreciation charge.
ANNUAL REPORT 2012/13
|
71
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
14,101
13,163
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
Total trade and other payables
2,996
2,423
44,644
41,658
Trade payables also include payments due to suppliers for key capital projects. The average credit period on purchases of goods and
services is 30 days. No interest is charged on the trade payables for the first 30 days from the date of the invoice. Specific suppliers may
choose to charge interest after that period. The continuous monitoring of cash flow ensures that the majority of payables are paid within the
credit timeframe and no material interest is incurred on overdue balances.
Current
Processing centre fit-out loans
18.3
3,827
3,515
18.2
5,184
4,478
9,011
7,993
36
Information Services
38
Manufacturing
Non-current
40
Medical, Transplantation
and Quality Services
Processing centre fit-out loans
18.3
35,873
39,700
Processing centre fit-out lease liabilities
18.2
43,793
48,924
Total non-current borrowings
79,666
88,624
42
Research and Development
Total borrowings
88,677
96,617
44
Thank you for saving Jasmine’s life
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
Total current borrowings
3,607
25,667
Total current current obligations not expected to be taken in the next 12 months
31,863
29,274
11.1.2 Non-current provision
Employee benefits refer to provisions for long service leave for employees who have not completed the required years of service, calculated
on the basis described in Note 3.17.1.2.
11.2 Provision for make good for property leases
Make good provisions represent the present value of management’s best estimate of the future sacrifice of economic benefits that will be
required to remove leasehold improvements from leasehold property at the end of the particular lease. The estimate has been made on the
basis of historical make good costs, a review of leases and future rentals. The unexpired term of the leases range from 2 to 20 years.
Movements in make good provisions are as follows:
Output funding net cash advance
Statement of changes in equity
Non-current
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
49,458
Make good for property leases
45,243
676
950
50,134
46,193
Employee benefits
8,842
8,440
Make good for property leases
3,363
3,335
Total non-current provisions
12,205
11,775
Total provisions
62,339
57,968
Total current provisions
|
4,285
3,501
(246)
784
4,039
4,285
51,111
57,285
12. PREPAID GOVERNMENT FUNDS
Employee benefits
72
4,313
27,550
Carrying amount of make good provisions at end of the year
Current
54
$’000
Long service leave obligation expected to be settled after 12 months
Provision movement
11. PROVISIONS
Statement of financial position
$’000
The following amounts reflect annual leave and long service leave, currently described as a current obligation, that are not expected to be
taken in the next 12 months:
Carrying amount of make good provisions at beginning of the year
Leased assets pledged as security for lease liabilities
The total current and non-current lease liabilities are effectively secured as the rights to the leased assets recognised in the financial
statements and revert to the lessor in the event of default.
53
2012
11.1.1 Current provision
The current provision for employee benefits includes accrued annual leave and long service leave. For long service leave it covers all
unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to
pro-rata payments in certain circumstances. In 2013, the Blood Service financial statements have reflected the standard entitlement period
of long service leave at seven years of continuous service. This obligation is presented as current since the organisation does not have an
unconditional right to defer settlement. Based on past experience however, the Blood Service does not expect all employees to take the full
amount of accrued leave within the next 12 months.
Annual leave obligation expected to be settled after 12 months
10. BORROWINGS
Processing centre fit-out lease liabilities
46
Notes
2013
11.1 Provision for employee benefits
26,072
Accrued wages and salaries
Human Resources
$’000
27,547
Goods and Services Tax payable
34
$’000
Trade payables
The Board
Finance
2012
9. TRADE AND OTHER PAYABLES
20
32
Notes
2013
AUSTRALIAN RED CROSS BLOOD SERVICE
Government grants refundable
8,908
1,244
Total prepaid government funds
60,019
58,529
Output funding net cash advance relates to the working capital advance received from the NBA upon commencement of the Output Based
Funding Model from 1 July 2011, less June 2013 revenue not received until July 2013.
Government grants refundable relate to the expected return of funds to the NBA for surpluses in the reported period.
ANNUAL REPORT 2012/13
|
73
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
Notes
2013
2012
$’000
$’000
Current
431
420
The Executive
Total current other liabilities
431
420
24
Key performance indicators
26
Non-current
-
-
Lease incentive
3,756
4,107
Organisation chart
Total non-current other liabilities
3,756
4,107
28
Corporate, Strategy and Performance
Total other liabilities
4,187
4,527
30
Donor Services
32
Finance
Human Resources
14. RETIREMENT BENEFIT PLAN OBLIGATIONS
Present value of the defined benefit plan obligation
14.1
24,993
32,175
Fair value of defined benefit plan assets
14.2
(18,675)
(17,244)
6,318
14,931
6,318
14,931
Net liability in the statement of financial position
36
Information Services
38
Manufacturing
Net liability in the statement of financial position
40
Medical, Transplantation
and Quality Services
14.1 Reconciliation of movement in the present value
of the defined benefit plan obligation which is partly funded:
42
Research and Development
Current and past service cost
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
2012
$’000
$’000
Current and past service cost
(1,174)
(1,183)
Contributions by plan participants
Interest cost
Expected return on plan assets
Contributions by the employer
Movement in retirement benefit plan obligations (excluding actuarial losses)
Actuarial gain/(loss) recognised in the period
Expenses recognised
116
(844)
994
3,500
2,592
6,021
8,613
118
(1,233)
1,230
1,404
336
(8,599)
(8,263)
Cumulative actuarial gain/(loss) recognised in the statement of profit and loss
and other comprehensive income.
(9,637)
(15,658)
25.5%
Notes
14.3 Amounts recognised in the statement of comprehensive income:
13. OTHER LIABILITIES
Lease incentive
34
2013
Comprising:
Balance at beginning of the year
Interest cost
14.4
32,175
25,991
1,174
1,183
844
1,233
Actuarial (gain)/loss
(4,798)
6,933
Benefits paid
(4,402)
Balance at end of the year
24,993
(3,165)
32,175
The percentage contribution of each majority category of total plan assets comprises:
Australian equities
23.8%
International equities
25.6%
23.8%
Property
10.3%
11.6%
Australian fixed interest
4.3%
7.0%
International fixed interest
1.9%
6.0%
Cash
5.6%
6.9%
Other
28.5%
19.2%
100.0%
100.0%
3.8%
3.0%
Principal actuarial assumptions:
The principal assumptions used (expressed as weighted averages) were as follows:
Discount rate
Anticipated return on plan assets
6.7%
6.6%
Expected future salary increases
4.3%
4.4%
2013
$’000
14.2 Reconciliation of movement in the fair value of plan assets:
Balance at beginning of the year
17,244
Expected return on plan assets
994
19,323
Actuarial gain/(loss)
1,223
1,230
(1,666)
Contributions by the employer
3,500
1,404
Contributions by plan participants
116
Benefits paid
(4,402)
118
(3,165)
Balance at end of the year
18,675
17,244
2012
$’000
2011
$’000
2010
$’000
2009
$’000
14.4 Historic summary
Defined benefit plan obligation
Plan assets
Deficit
Experience adjustments arising on plan liabilities
Experience adjustments arising on plan assets
24,993
32,175
25,990
25,700
(18,675)
(17,244)
(19,322)
(19,337)
24,206
(16,762)
7,444
6,318
14,931
6,668
6,363
(4,798)
6,933
952
1,039
1,223
(1,666)
191
592
2,537
(5,544)
14.5 Expected contributions and funding arrangements
Expected employer contributions – year to 30 June
716
1,275
916
948
1,526
The current contributions recommendation as set out in the reports of the most recent actuarial valuation of the funds as at 30 June 2013 is an
average of 9.8% (2012: 15.2%) of salaries in respect of defined benefits.
The Blood Service has recognised a liability in the statement of financial position in respect of its defined benefits superannuation arrangements.
74
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
75
PREVIOUS PAGE
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
Notes
15.1
245,052
232,678
Special reserve
15.2
55,078
48,165
Capital reserve
15.3
55,132
43,315
16
355,262
324,158
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
General reserves held are surplus funds not yet allocated for a specific purpose.
38
Manufacturing
15.2 Special reserve
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
$’000
General reserve
24
55
$’000
Notes
2013
2012
$’000
$’000
15.4 Movement within reserves
The Executive
Statement of changes in equity
2012
15. RESERVES
22
54
2013
Total reserves
15.1 General reserve
Balance at beginning of year
Transfer to special reserve
232,678
235,909
(6,913)
(18,416)
(14,477)
(32,893)
Transfer to capital reserve
(11,817)
Total transfer from general reserve
(18,730)
Surplus for the year
25,083
Actuarial gain/(loss) on retirement benefit plan obligations
6,021
Balance at end of the year
245,052
38,261
(8,599)
232,678
15.4.1 Transfer between general and special reserve
The $6.913 million movement (2012: $1.521 million) comprises partly of (i) allocation of funds to the corporate risk reserve (2013:
$2.700 million, 2012: $5.000 million) (ii) allocation of funds to the Output Based Funding Model (OBFM) risk reserve (2013: $3.500 million,
2012: $1.500 million), (iii) interest income earned from special reserves funds (2013: $1.831 million, 2012: $2.332 million);
and less (iv) expenditure of $7.189 million (2012: $14.704 million) on registered special reserve initiatives.
15.4.2 Transfer of special purpose funds to special reserves
Special purpose funds relate to funds assigned for specified purposes. The amounts recognised relate to external income received and
reported in prior years where there were residual funds as at balance date. In 2012, the balance of special purpose funds of $16.895 million
was assessed and reclassified as special reserves in equity, reflecting the restricted use the Blood Service has over these funds. The impact
of this reclassification increased other income in 2012 by $16.895 million.
16. EQUITY
Accumulated funds at beginning of the year
324,158
Total comprehensive income
Accumulated funds at end of the year
Balance at beginning of the year
48,165
29,749
Income received and transferred to the reserve
14,102
16,225
Expenditure incurred and transferred from the reserve
(7,189)
(14,704)
1,521
29,662
355,262
324,158
25,083
38,261
45,375
38,797
17. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
17.1 Cash flows from operating activities
Net surplus
Adjustments for:
Subtotal transfer from general reserve
15.4.1
6,913
Transfer from general reserve for surplus previously classified as special purpose funds
15.4.2
-
16,895
(Gain)/Loss on foreign exchange
(13)
6,913
18,416
Loss/(Gain) on disposal of non-current assets
652
55,078
48,165
Interest paid on finance leases
Total transfer from general reserve
Balance at end of the year
Depreciation
8
(8,179)
The Blood Service’s special r eserve records retained surplus over which the Blood Service has restricted use. The majority of the balance is
comprised of Commonwealth (NBA) funded reserves which include the Output Based Funding Model (OBFM) risk reserve (2013: $5.000
million, 2012: $1.500 million), corporate risk reserve (2013: $18.185 million, 2012:$14.900 million), unallocated prior year surpluses
(2013: $4.706 million, 2012: $4.035 million) and interest earned (2013: $7.032 million, 2012: $5.201 million). The remainder of the
balance consists of State government and other externally funded reserves.
Movement in retirement benefit plan obligations (excluding actuarial losses)
(2,592)
15.3 Capital reserve
43,315
28,838
Income received and transferred to the reserve
51,597
48,015
Total transfer from general reserve
Expenditure incurred and transferred from the reserve
(39,780)
11,817
(33,538)
14,477
Balance at end of the year
55,132
43,315
1
(2,006)
7,470
Interest received
Balance at beginning of year
294,496
31,104
6,927
(9,643)
(336)
Changes in operating assets and liabilities:
(Increase)/Decrease in trade and other receivables
(1,374)
Increase/(Decrease) in trade and other payables
2,645
Increase/(Decrease) in prepaid government funds
1,490
Increase/(Decrease) in provisions
4,371
(Increase)/Decrease in consumables inventory
(Increase)/Decrease in blood and blood product inventory
Net cash inflow from operating activities
273
(11,900)
(13,957)
8,265
(668)
(433)
(13,915)
194
60,580
54,208
The Blood Service’s capital reserve records retained surplus less capital expenditure relating to various capital funded programs or funds
received for the purpose of future capital expenditure.
76
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
77
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
Notes
2013
2012
$’000
$’000
Notes
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
For the purpose of the cash flow statement, cash and cash equivalents comprise the following at 30 June:
20
The Board
Cash at bank and on hand
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
– within one year
65,945
59,248
44
Thank you for saving Jasmine’s life
– later than five years
114,704
122,769
18.4 Capital expenditure commitments
Total non-cancellable operating leases
201,422
200,438
Capital commitments contracted for at the reporting date but not recognised as liabilities are as follows:
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
17.2 Reconciliation of cash and cash equivalents
2012
$’000
$’000
18.2.2 Total equipment and property fit-out finance leases
Minimum lease payments
51
232
Term deposits and investments
206,647
190,679
Total cash and cash equivalents
206,898
190,911
– within one year
8,694
8,346
– later than one year and not later than five years
35,644
33,199
– later than five years
20,429
31,568
Minimum future lease payments
64,767
73,113
(15,790)
48,977
(19,711)
53,402
10
5,184
4,478
10
43,793
48,924
18.2.1
48,977
53,402
Less: future finance charges
18. COMMITMENTS
Total lease liabilities
Representing lease liabilities:
18.1 Non-cancellable operating leases
Current
The Blood Service leases various premises used as offices, blood collection, processing and testing centres, and warehouses under
non-cancellable leases expiring within 2 to 20-years. The leases include a 20-year lease (expiring April 2028) for a property at Kelvin Grove,
Brisbane, a 20-year lease (expiring January 2031) for the property at Alexandria, Sydney, a 11-year lease (expiring November 2021) for the
National Office on St. Kilda Road, Melbourne and several donor centres nationally.
Non-current
A number of lease arrangements entered into by the Blood Service provide the option to extend the term beyond the initial expiration date.
Previously the commitment for minimum lease payments in relation to non-cancellable operating leases has been calculated to include
the exercise of such options as this reflected past business practice. During the year, management reviewed this approach and has now
limited the calculation of the commitment to the initial lease term under the contract. This approach has been reflected in the prior year
comparatives and is consistent with the calculation of the make good provision.
Secured bank loans:
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
20,773
– later than one year and not later than five years
2013
18,421
Of this total, $2.067 million of commitments for minimum lease payments relates to transactions with the Society – see note 23.
$1.102 million is payable within one year and the remaining payable later than one year but within five years.
Total lease liabilities
18.3 Borrowings
Current
10
3,827
3,515
Non-current
10
35,873
39,700
39,700
43,215
Total bank loans
In 2011, the Society had entered into a 10-year loan agreement for the value of $47.500 million to partially fund the building works of the
Sydney Processing Centre in Alexandria. The loan is secured by a fixed charge of the building works and equipment (including fixtures and
fittings) and a charge over the Deed of Indemnity between the Society and the NBA. The Blood Service receives special grant funding to
cover the lease repayments under this arrangement.
Property, plant & equipment
Payable:
– within one year
18.2 Finance leases
The Blood Service leases various equipment and fit-outs with a carrying value of $48.977 million (2012: $53.402 million) under finance
leases expiring within 3 to 10 years. Under the terms of the leases, the Blood Service has the option to acquire the leased assets on
expiry of the leases. These leases relate to:
18.2.1 Property fit-out leases
Upon completion of the Brisbane Processing Centre in Kelvin Grove in 2008, the constructed asset was used to underwrite a $32.473
million 10-year finance lease with a financial institution. As at 30 June 2013, the residual balance of this facility was $19.117 million
(2012: $21.209 million). The lease repayments relating to this arrangement are funded by the Annual Capital Program.
8,174
7,084
– later than one year and not later than five years
-
-
– later than five years
-
-
8,174
7,084
Total capital expenditure commitments
Of the reported total capital expenditure commitments, $2.235 million relates to premises related activities with the balance committed to
asset replacement programs and various other business initiatives.
In 2012, the Melbourne Processing Centre in West Melbourne was completed and the constructed asset was used to underwrite a
$33.500 million 10-year finance lease. As at 30 June 2013, the residual balance of this facility was $29.860 million (2012: $32.193 million).
The Blood Service receives special grant funding to cover the lease repayments under this arrangement.
78
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
79
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
Notes
2013
2012
$’000
$’000
19. CONTINGENT LIABILITIES
2013
2012
$’000
$’000
– Audit or review of the financial statements of the Blood Service
88,200
85,260
– Audit for grant acquittals
23,625
23,100
Notes
22. REMUNERATION OF AUDITORS
There is a potential for claims to arise from viral/bacterial infections or blood-borne diseases which are currently unidentified, or in
circumstances where there is no test or screening procedures available to test for a virus/bacteria/disease state. In the event that commercial
insurance does not cover financial exposure arising as a result of transmission of blood-borne disease occurring subsequent to 1 July 2000,
a national managed fund has been established with claims covered at the discretion of the NBA.
Amounts paid or due and payable to Deloitte Touche Tohmatsu for:
– Other non-audit services
159,978
305,254
The Blood Service is entitled to seek, and the NBA may at its discretion grant, indemnities in respect of potential liabilities arising from
litigation in relation to pre-July 2000 transfusion-transmitted diseases.
Total remuneration of auditors
271,803
413,614
Of the total remuneration of auditors, ‘other non-audit services’ relates to:
– consulting relating to the Laboratory Information Management System (LIMS) implementation; and
– consulting relating to Financial, Assets and Inventory Management System (FAIMS) upgrade
There are no contingent liabilities or events identified which could be expected to have a material impact on the financial statements
in the future.
23. RELATED PARTY DISCLOSURES
20. EVENTS AFTER REPORTING PERIOD
Transactions with the Australian Red Cross Society
There were no known significant events after the reporting period.
During the reporting period, net payments of $2.090 million (2012: $0.608 million) transacted between the Blood Service and the
Society. The transactions largely relate to the Blood Service’s occupancy of premises owned by the Society, whereby there are contractual
arrangements for the sub-lease of these facilities by the Blood Service. As at 30 June 2013, an aggregate of $2.067 million of commitments
for minimum lease payments in relation to non-cancellable operating leases are payable to the Society over a 5-year period. Inclusive in net
payments is a workcover premium payment of $0.972 million for 2012/13.
21. KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel compensations included in the surplus or deficit are as follows:
Short-term
Number of
personnel
2013 Total
compensation
2012 Total
compensation
80
|
Salaries and Superannuation
fees
contribution
Long-term
Termination
benefits
Postemployment
Long service
leave
Total
$’000
$’000
$’000
$’000
$’000
$’000
22
3,202
222
3
-
-
3,427
20
3,478
249
471
-
-
4,198
AUSTRALIAN RED CROSS BLOOD SERVICE
There was no material debt between the Blood Service and the Society at 30 June 2013.
ANNUAL REPORT 2012/13
|
81
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
Notes
2013
2012
$’000
$’000
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
The Blood Service holds the following financial instruments:
Financial assets
Cash – Australian currency
94
88
34
Human Resources
Cash – foreign currency
157
144
Total cash at bank and on hand
251
232
36
Information Services
206,647
190,679
38
Manufacturing
206,898
190,911
The Blood Service’s main interest rate exposure on financial liabilities arises from long-term borrowings. The Blood Service’s policy is to
maintain its long-term borrowings at fixed rates. As at 30 June 2013, all of the Blood Service’s borrowings were fixed interest borrowings.
Fair value estimation
Bank bills and term deposits
Total cash and cash equivalents
17.2
Trade and other receivables
6
8,502
7,128
215,400
198,039
9
44,644
41,658
Borrowings – finance leases
10
48,977
53,402
Borrowings – loans
10
39,700
43,215
Prepaid government funds
12
60,019
58,529
Other liabilities
13
4,187
4,527
197,527
201,331
Total financial assets
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
Financing facilities available
52
Statement of profit or loss and other
comprehensive income
Credit card and travel account
54
The Blood Service has significant interest-bearing financial assets and is exposed to interest rate fluctuations on its investments in bank term
deposits. The Blood Service accepts the risk in relation to its financial assets, as the balances held fluctuate in the short-term and are held to
generate investment income on unused funds.
Financial risk management is carried out by a central treasury function under policies approved by the Board, with the Chief Financial
Officer responsible for financial risk management. It is the Blood Service’s policy to conduct its banking business, including instruments
used to hedge risk, with high credit quality financial institutions.
Medical, Transplantation
and Quality Services
Statement of financial position
24.1.1 Interest rate risk
The Blood Service’s activities expose it to a variety of financial risks: market risk (including foreign currency risk and interest rate risk),
credit risk and liquidity risk. The Blood Service’s overall risk management program focuses on the unpredictability of financial markets
and seeks to minimise potential adverse effects on the financial performance of the Blood Service.
40
53
24.1 Market risk
24. FINANCIAL RISK MANAGEMENT
Financial liabilities
Trade and other payables
Total financial liabilities
24.1.2 Foreign currency exchange rate risk
Foreign currency exchange rate risk arises from future commercial transactions and recognised assets and liabilities denominated in
a currency that is not the entity’s functional currency. The Blood Service treasury policy allows for contracts to be negotiated in foreign
currency where it is financially more advantageous than negotiating in Australian dollars. The Blood Service either holds appropriate foreign
currency balances or uses financial instruments such as forward foreign currency contracts for cash flow hedging purposes; that is, not
as trading or speculative instruments. It is Blood Service policy to purchase standard foreign exchange contracts to cover foreign currency
liabilities. As at 30 June 2013, the Blood Service did not have any forward exchange contracts. The Blood Service assessed its foreign
currencies as at 30 June 2013 and they are as follows:
Foreign currency financial assets
2013
$’000
$’000
$’000
Foreign
currency
AUD
equivalent
Foreign
currency
AUD
equivalent
USD
151
157
151
144
Total foreign currency financial assets
157
24.1.3 Sensitivity analysis
The following table summarises how the Blood Service’s surplus and equity would have been affected by changes in interest and foreign
currency exchange rates at statement of financial position date.
Carrying
amount
2,000
Borrowings – finance leases
48,977
53,402
Borrowings – loans
39,700
43,215
Total financing facilities available
90,677
98,617
1,061
1,002
Statement of changes in equity
Facilities unused at reporting date
55
Statement of cash flows
Credit card and travel account
56
Notes to the financial statements
Borrowings – finance leases
-
-
Borrowings – loans
-
-
86
Declaration
1,061
1,002
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
144
The Blood Service has no other foreign currency assets or liabilities.
Interest rate risk
2,000
2012
Cash and cash equivalents
At reporting date, the following financing facilities had been negotiated and were available:
$’000
Foreign currency exchange rate risk
- 100
basis
points
- 100
basis
points
+ 100
basis
points
+ 100
basis
points
- 20%
- 20%
+ 20%
+ 20%
Surplus
Equity
Surplus
Equity
Surplus
Equity
Surplus
Equity
2013 Financial assets*
Cash and cash equivalents
Total facilities unused at reporting date
$’000
206,898
Total (decrease) / increase
(1,844)
(1,844)
1,844
1,844
(26)
(26)
40
40
(1,844)
(1,844)
1,844
1,844
(26)
(26)
40
40
2012 Financial assets*
Cash and cash equivalents
Total (decrease) / increase
190,911
(1,741)
(1,741)
1,741
1,741
(24)
(24)
36
36
(1,741)
(1,741)
1,741
1,741
(24)
(24)
36
36
* Sensitivity analysis does not apply to Blood Service borrowings as all loans and finance leases have fixed interest rates for the term of the loans.
82
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AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
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83
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NOTES TO THE
FINANCIAL STATEMENTS
Continued...
FOR THE YEAR ENDED
30 JUNE 2013
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
Notes
Maximum exposure to credit risk at the reporting date:
32
Finance
Trade and other receivables
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
53
Statement of financial position
2012
54
Statement of changes in equity
Non-interest bearing
55
Statement of cash flows
Finance lease liability
88
Australian Red Cross
90
Contact details
Notes
Less than
1 month
1-3
months
3 months
to 1 year
1-5 years
5+ years
Total
%
$’000
$’000
$’000
$’000
$’000
$’000
8,502
-
-
-
-
8,502
251
206,647
-
-
-
206,898
8,753
206,647
-
-
-
215,400
7,128
-
-
-
-
7,128
232
190,679
-
-
-
190,911
7,360
190,679
-
-
-
198,039
6
17.2
12.19
215,400
198,039
2012
Non-interest bearing
Variable interest rate instruments
Total non-derivative financial assets
Financial liabilities
Statement of profit or loss and other
comprehensive income
What your blood donation means to me
7,128
The following table details the Blood Service’s contractual maturity for its non-derivative financial liabilities. The table has been drawn up
based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Blood Service can be requested to pay.
The table includes principal cash flows only.
52
87
190,911
8,502
Prudent liquidity risk management implies maintaining sufficient cash and availability of funding through an adequate amount of committed
credit facilities and funding arrangements. The Blood Service manages liquidity risk by monitoring forecast cash flows and ensuring that
adequate liquid funds are available.
Independent Auditor’s report
Declaration
206,898
6
24.3 Liquidity risk
50
86
Non-interest bearing
17.2
Total maximum exposure to credit risk at the reporting date
Finance Report from the Chief Executive and Chief Financial Officer
Notes to the financial statements
Notes
Weighted
effective
Total non-derivative financial assets
Cash and cash equivalents
46
56
Non-derivative financial assets
Variable interest rate instruments
Donor Services
38
The following table details the Blood Service’s expected maturity for its non-derivative financial assets. The table has been drawn up based
on the undiscounted contractual maturities of the financial assets, including interest that will be earned on those assets, except where the
Blood Service anticipates that the cash flow will occur in a different period.
2013
30
Information Services
$’000
There is no significant credit risk with respect to receivables, as the major receivables are from the Commonwealth, State and
Territory governments.
Corporate, Strategy and Performance
36
$’000
Credit risk is managed on a national basis. Credit risk arises from cash and cash equivalents, derivative instruments and deposits with
financial institutions, as well as credit exposure to customers. For financial institutions, only those that are rated with a minimum
AA-equivalent Standard & Poor’s rating are accepted. In respect of customers, the Blood Service ensures that invoices for products and
services are largely made to customers with an appropriate credit history. Credit risk for derivative financial instruments arises from the
potential failure by counterparties to the contract to meet their obligations.
28
Human Resources
2012
24.2 Credit risk
The credit quality of financial assets can be assessed by reference to external credit ratings.
34
2013
Weighted
effective
Less than
1 month
1-3
months
3 months
to 1 year
1-5 years
5+ years
Total
%
000
$’000
$’000
$’000
$’000
$’000
95,791
8,980
323
1,723
2,033
108,850
39,700
6
17.2
5.67
24.4 Fair value financial instruments
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their
short-term nature.
2013
Non-interest bearing
Fixed loan liability
Finance lease liability
18.3
8.63
310
617
2,900
19,013
16,860
18.2.2
7.55
389
784
4,010
25,561
18,233
48,977
96,490
10,381
7,233
46,297
37,126
197,527
Total financial liabilities
Fixed loan liability
Total financial liabilities
84
|
98,978
1,314
315
1,437
2,670
104,714
18.3
8.63
295
556
2,664
17,461
22,239
43,215
18.2.2
6.79
361
728
3,390
21,457
27,466
53,402
99,634
2,598
6,369
40,355
52,375
201,331
AUSTRALIAN RED CROSS BLOOD SERVICE
ANNUAL REPORT 2012/13
|
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BOARD MEMBERS
DECLARATION
WHAT YOUR BLOOD
DONATION MEANS TO ME
By Holly Fields, recipient
04
Vision, values and mission
06
From the Chair and Chief Executive
In accordance with a resolution of the Board of the Australian Red Cross Blood Service, I state that:
10
Corporate Governance
In the opinion of the Board:
20
The Board
(a) the financial statements and notes of the Blood Service:
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
(i) give a true and fair view of the Blood Service’s financial position as at 30 June 2013 and of its performance for the year ended on
that date; and
(ii) comply with Australian Accounting Standards and other mandatory professional reporting requirements; and
(b) there are reasonable grounds to believe that the Blood Service will be able to pay its debts as and when they become due and payable.
On behalf of the Board
The Hon Dr David Hamill AM
Chair
“I live life knowing I can do so thanks to
others.”
I have always had health issues especially
with my respiratory system, but because
this was normal for me, no-one, myself
included, thought anything of it.
It wasn’t until my late 30’s things got
worse and I was always feeling tired, if
there were colds to be caught I got them
but most people recovered in a week.
However, for me it would wipe me out for
two to three weeks and I would be gulping
down antibiotics for a month. By the time
I was 40 it was exacerbating to the point
that I constantly had sinus infections,
asthma, headaches and fatigue.
My immune system was
crumbling. It was affecting
all aspects of my life.
Melbourne
Date: 30 September 2013
I visited many doctors but they just told
me I was run down, gave me a few days
off, one even sent me to counselling.
Nothing helped until I was recommended
to see a friend’s doctor. I walked in and
told him my symptoms and at the end I
said almost in shame “I’m just run down”.
He immediately recognised it was beyond
that, and my immune system was failing
and he ordered tests. These tests found
my immunoglobulin level was very low. I
was sent to a specialist and after further
definitive testing over the next couple of
months I was diagnosed with Common
Variable Immunoglobulin Deficiency.
86
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AUSTRALIAN RED CROSS BLOOD SERVICE
There is no cure but I can be given
immunoglobulin from other people to
boost my immune system to a minimum
healthy level. I have since been receiving
an infusion of a product called Intragam P
every four weeks.
I now work
as a blood donor
nurse and tour all
over Australia with
my motorcycling
mates.
Intragam P is made from the
immunoglobulin in the plasma of donated
blood. I worked out that at the time
of writing this I have had 39 infusions.
Working on how many donations go into
one dose and it means that I have needed
468 plasma donations or 936 whole blood
donations to extract the immunoglobulin
to maintain my health so far.
This, however, highlights the importance
of regular donors as the need is
continually high. Now I get to enjoy a
much healthier life rather than just survive
the best I can.
I now work as a blood donor nurse
and tour all over Australia with my
motorcycling mates. It has also improved
my prospect of a longer life. Thank you to
all blood donors, in a nutshell you have
given me a quality of life that otherwise I
would not be able to achieve despite all
other efforts to be as healthy as possible.”
Holly Fields is healthy because of the
generosity of Australia’s plasma donors.
The demand for plasma is set to double
over the next 10 years, and medical
science finds more and more ways to use
this liquid gold. Help someone like Holly
by becoming a plasma donor today.
Visit donateblood.com.au or call 13 14 95
to make an appointment.
ANNUAL REPORT 2012/13
|
87
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AUSTRALIAN
RED CROSS
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
In Australia, we
have thousands of
members, volunteers
and supporters who
continue to assist
in our disaster,
international
humanitarian law
and ongoing
everyday work.
Australian Red Cross is part of the
largest humanitarian movement in the
world. In Australia, we have thousands
of members, volunteers and supporters
who continue to assist in our disaster,
international humanitarian law and
ongoing everyday work.
From providing a healthy breakfast and
nutrition lessons for kids who would
otherwise go to school hungry to helping
families separated by war, to working with
Australian governments to ensure that the
principle of humanity is considered by policy
makers, we are there for people in need.
In the last year, Red Cross has continued
to support the most vulnerable people
in our communities and with demand
for our services increasing, our everyday
work wouldn’t have been possible without
the generous support of the thousands
of people who have lent their time,
resources and energy.
Advocating for vulnerable migrants
Growing demand for our migration
support services in the last year has seen
the number of clients Red Cross assists
double to 20,901. As they are one of
the most vulnerable groups in Australia,
we continue to provide services based
on need, without discrimination and
irrespective of legal status.
This year we published The Vulnerability
Report, a research contribution into the
day-to-day realities of people seeking
asylum in Australia.
Released in June, the report shed
light on the concerning impacts of
long delays in processing and limited
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opportunities for meaningful participation
in the community. Red Cross launched
the report in Canberra, making five
recommendations on developing a more
humane system for seeking asylum in
Australia.
program for young offenders has
demonstrated clear benefits, enabling
people to make positive and long lasting
changes to their lives.
As a member of the world’s largest
humanitarian organisation, we see it as
our responsibility to respond to critical
issues of humanitarian concern and will
continue to seek to influence government
on these vital matters.
‘Working together as partners’ underpins
all of the work we do in more than 140
Aboriginal and Torres Strait Islander
communities in metropolitan, regional
and remote locations. This year, we
released our first ever Reconciliation
Action Plan (RAP) which provides a way
forward in terms of building on respectful
engagement with Aboriginal and Torres
Strait Islander communities, so that
together we can play our part achieving
reconciliation within Australia.
Supporting justice reinvestment
Red Cross is committed to building a
more socially inclusive Australia. By
working with people incarcerated within
the criminal justice system, or those at
risk of entering it, we aim to address
the impacts of social disadvantage and
marginalisation.
In May this year we made comment
at a Senate Inquiry into Australia’s
prison system, strongly recommending
government considers justice
reinvestment as a viable approach to
reducing crime.
It is an approach whereby some of the
$3.2 billion dollars spent on maintaining
our 114 prisons is diverted to address
the real causes of crime. So that in areas
of high social disadvantage, government
invests in communities and supports
people to lead more productive lives to
prevent crimes being committed in the
first place.
Our own experience of providing prisoner
support programs and a mentoring
Working together as partners
vulnerable communities both in Australia
and further afield.
We are equally grateful for the ongoing
support of the Australian public who
continue to roll up their sleeves to give
blood to the Australian Red Cross Blood
Service.
As an auxiliary to government, we also
thank the Australian Government for
reaffirming our Annual General Purpose
Grant of $5 million, which enables us to
deliver ongoing humanitarian relief and
community services.
Safeguarding the emblem
The red cross emblem saves lives and
this year we reminded Australians of
its significance as a symbol meaning
‘Don’t shoot’. Even though the emblem
is protected under Australian and
international law, it is often misused
to connote ‘healthcare’ or ‘medical
assistance’. Our campaign to draw
attention to its true meaning was a great
success reaching more than 200,000
people through video and social media.
Thank you Australia
Thank you to the many Australians
who have generously given including
those who have left a gift in their Will,
our regular monthly givers and those
who have donated to one of our many
fundraising appeals. Because of you, we
are able to continue offering assistance to
Matt has taken huge steps to turn his life around through the Step Out program, going from
rough sleeping and trouble with the law to finding a place to live, getting into a construction
training course and focusing on the important things in life: a regular kick of the footy.
ANNUAL REPORT 2012/13
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04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
For further information contact:
30
Donor Services
Australian Red Cross Blood Service
32
Finance
National Office
34
Human Resources
Level 3, 417 St Kilda Rd
36
Information Services
MELBOURNE, Victoria, 3004
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
Brisbane, Queensland
Perth, Western Australia
44
Thank you for saving Jasmine’s life
44 Musk Avenue
Level 1, 290 Wellington Street
46
Finance Report from the Chief Executive and Chief Financial Officer
PO Box 145
Perth, WA, 6000
Kelvin Grove, QLD, 4059
T: 08 9421 2333
50
Independent Auditor’s report
T: 07 3838 9001
F: 08 9221 3031
F: 07 3838 9427
Sydney, New South Wales
52
Statement of profit or loss and other
comprehensive income
Melbourne, Victoria
17 O’Riordan Street
100-104 Batman Street
Alexandria, NSW, 2015
53
Statement of financial position
West Melbourne, VIC, 3006
T: 02 9234 2444
54
Statement of changes in equity
T: 03 9694 0111
F: 02 9290 3316
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
T: 03 9863 1600
F: 03 9863 1601
Processing Offices
F: 03 9686 1768
To find a donor centre visit donateblood.com.au or call 13 14 95
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AUSTRALIAN RED CROSS BLOOD SERVICE
© Copyright 2013 Australian Red Cross Blood Service. No person should act on the basis of the contents of this publication without first
obtaining specific, independent and relevant advice. The Australian Red Cross Blood Service is not liable for any loss, damage, cost or expense
incurred or arising by any person, or organisation, using or relying on the information in this publication. All rights reserved. Reproduction in
whole, or part, is not permitted without written permission.
ANNUAL REPORT 2012/13
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PREVIOUS PAGE
NEXT PAGE
head
04
Vision, values and mission
06
From the Chair and Chief Executive
10
Corporate Governance
20
The Board
22
The Executive
24
Key performance indicators
26
Organisation chart
28
Corporate, Strategy and Performance
30
Donor Services
32
Finance
34
Human Resources
36
Information Services
38
Manufacturing
40
Medical, Transplantation
and Quality Services
42
Research and Development
44
Thank you for saving Jasmine’s life
46
Finance Report from the Chief Executive and Chief Financial Officer
50
Independent Auditor’s report
52
Statement of profit or loss and other
comprehensive income
53
Statement of financial position
54
Statement of changes in equity
55
Statement of cash flows
56
Notes to the financial statements
86
Declaration
87
What your blood donation means to me
88
Australian Red Cross
90
Contact details
xxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxx
xxxxx.
FIND OUT MORE: donateblood.com.au
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