Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
ABN 62 051 291 134
Commonwealth Government Australia
The Hon Peter Dutton MP, Minister for Health
01/07/2014 – 22/12/2014
The Hon Sussan Ley MP, Minister for Health, Minister for
Ambulance Services
23/12/2014 – 30/06/2015
State Government Victoria
The Hon David Davis, MLC, Minister for Health & Ageing
01/07/2014 – 3/12/2014
The Hon Jill Hennessy, MLA, Minister for Health
04/12/2014 – 30/06/2015
The Hon Martin Foley, MLA, Minister for Housing, Disability and Ageing
04/12/2014 – 30/06/2015
President
Mr. G.
Sheppard
Vice President
Fr. A. Hayes 1/7/2014 – 28/08/2014
Dr. T. Halloran 28/08/2014 – 27/11/2014
Mr. P. Green 27/11/2014 – 30/06/2015
Members
Mr. T. Baker (OAM)
Mrs. K. Black
Mr. G. Cain
Mr. R. Dalby
Mr. P. Green
Dr. T. Halloran
Mr. G. Smith
Mr. O. Stephens - CEO
Mrs. K. Black – Chair
Mr. G. Sheppard – Independent Member
Mrs. B. Toma – Finance Officer
Mr. R. Dalby – Independent Member
Fr. A. Hayes – Independent Member
Dr. B. S. Coulson: M.B.B.S., D.R.O.G., F.A.C.R.R.M.
Dr. M. Prozesky : M.B., ChB, (South Africa)
Dr. R. Taheri: M.B. (Mashad Uni Iran) G.P. Registrar
Dr. S. Ansari: M.B.B.S. (Army Medical College – Pakistan)
Dr. Y. Zhang: M.B. (Uni of Med Sciences – Guangzhou)
Dr. L. Thompson : BMBS FRACGP (Flinders University)
Dr. T. N. Halloran : B.D., B.Sc. (Hons)
Mr. P. H. Tung: M.B., B.S., F.R.A.C.S.
Mr. S. Clifforth : M.B., B.S., F.R.A.C.S.
Dr. G. Coggins: M.B., B.S., F.R.A.C.P.
Dr. C. de Kievit : M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.
Dr. K. Fielke : M.B., B.S., D.R.A.N.Z.C.O.G., F.A.C.R.R.M.
Dr. J. D. Muir : M.B., ChB, D.A., F.R.C.A.
Dr. T. J. Hodson : M.B., M.B.S., F.R.A.N.Z.C.O.
Dr. S. Perry: G.P. Anaesthesia F.R.A.C.G.P., B.M.B.S.
(Flinders), B.S.C., D.C.H.
Dr. K. Yang: B.M.M.S.
Dr. S . Yuan: M.B.B.S.
Emeritus
Dr.A. F. Floyd: M.B., B.S., D.Obst, R.C.O.G.
* Resigned during year
Chief Executive Officer
Mr. O. P. Stephens: B.Bus., A.C.H.S.E.
Manager Nursing Services
Ms. M.A. Betson: N.P.,R.N., R.M., Cert. Critical Care, Nurse
Immuniser,MNsg.MNP,FACN,
Nurse Unit Manager Acute Ward/AHS/Education Officer
Mrs. J. Coulter: R.N.,R.M., Cert IV Training& Assessment
Nurse Unit Manager Night Nurse in Charge /Quality
Improvement
Mrs. H. Dillon : R.N.,R.M.Grad Cert Ad Nsg Practice (Rural Remote)
Nurse Unit Manager Acute Ward/AHS
Mr. S. Gill: R.N, Cert Aged Care
Nurse Unit Manager Urgent Care/OR/IC
Mrs. H. Gill: R.N, Cert Infection Control & Sterilisation MACN
Nurse Unit Manager Residential Care
Mrs. K. Sealey: R.N., Cert IV in Frontline Management , MACN
Nurse Unit Manager Primary & Community Care
Ms. A. Pekin: R.N., Nurse Immuniser, Grad Cert Diabetes Ed., BA.,
Grad DipEd (Psychology)
Programmed Activity Group Co-ordinator
Mrs. S. Neill: Cert II Financial Svs., Cert III Disability
After Hours Supervisors
Mrs. S. Dehnert: R.N., R.M., IBCLC , Nurse Immuniser, Grad Dip
Child Maternal Health
Mrs. H. Dillon : R.N.,R.M.Grad Cert Ad Nsg Practice (Rural Remote)
Mrs. A. Jenkins: R.N., Grad Dip Palliative Care, Grad Cert Ad Nsg
Practice (Rural Remote), Grad Cert Gerentology
Mr. S. Bryan: R.N. B.N. Grad Cert Ad Nsg (Emergency Nursing)
Mr. S. Makore : R.N. (Acting)
Administrative & Finance Officer
Mrs. B. Toma
Health Information / Quality Improvement
Mrs. H. Rees:
Clinical Coder
Catering Services Supervisor
Mr. M. Nolte
Environmental Services Supervisor
*Mrs. E. Harvey
Ms J. East
Maintenance Coordinator / Safety
Mr. S. Zippel
Meals on Wheels Coordinator
Ms. V. Ross

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton Memorial Hospital was established in
1908 and is situated in the northern sector of the
Glenelg Shire within the township of Casterton.
Nestled amongst rolling hills and river red gums of the Glenelg River valley, it is located on the Glenelg
Highway, 359 kilometres west of Melbourne and
42 kilometres east of the South Australian border.
The Shire has a total population base of 19,520 and
Casterton rural north has a catchment population of 3,500. Our catchment area includes the townships of Digby, Merino and Sandford and the surrounding rural localities. Casterton Memorial
Hospital provides services to all within its population base as well as neighbouring shires.
As a Rural Health Service, the hospital is provided flexibility in its funding base to ensure that the services provided directly to our community are within budget and will best meet the needs of our community. The Board utilises local area information available to plan for and provide the most appropriate care and intervention options for our local catchment area to maximise health gains and status for our community.
The Hospital provides a range of acute health, aged residential care and primary healthcare services incorporating 15 medical/surgical inpatient beds, operating theatre, 2 bay urgent care centre, 2 dialysis chairs and 30 bed residential care facility
‘Glenelg House’. The Hospital also provides an extensive range of allied and primary healthcare personnel and programs along with visiting consultant services. All of these services are provided from our facility ensuring effective triaging and access of best care in best possible time for our patients and clients.
The Board of Management and staff at the
Casterton Memorial Hospital are committed to providing strong and efficient health and community services to meet the needs and expectations of the community it serves.
Casterton Memorial Hospital strategic plan 2013-
2015 can be found inside the front cover of this publication, or visit our website www.castertonmemorialhospital.com.au

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
It is with great pleasure that on behalf of the
Casterton Memorial
Hospital Board of
Management and staff, that I present to you our
107 th Annual Report.
Mr Graham Sheppard
President, BOM
The 2014/15 year has been a steady and successful year for CMH in all areas of operations, management, service planning and strategic management planning and above all person centre quality care to our patients, residents and clients.
I commend this report to you as testimony to another strong year for our team at CMH.
In what has been a testing financial year CMH has been able to support service demand and its profiled services and produce a surplus of
$132,855. Part of this surplus ($68,922) relates to new treatment of leases directed by the Auditor
General and thus has improved our operational result as a consequence.
Our total operating revenue for the year of
$8,392,357 increased on previous year by only
$187,955 or 2.2%.
Our expenditure was well maintained without affecting services with an increase on operational expenditure of 3.6% or $314,417. Total employee expenses were maintained to an increase of only
2.2% on previous years actual expenditure a sound result all round for CMH.
In spite of budgetary pressures CMH has increased service activity across its entire operations of
Acute, Residential Care, Primary Care and Urgent
Care. Acute separations were 707 compared to last year’s 608, Urgent Care treatments were 1,460 compared to 1,203 last year. Glenelg House
Residential Care maintained an occupancy rate of
99.90% which is a testament to its known physical facilities on offer and care provided.
Our Home Care services through District Nursing,
Meals on Wheels, Home Maintenance and
Community Transport Service have all enjoyed strong up-take and continuing client service and high satisfaction.
Our Specialist Visiting services and Allied Health teams have also provided a great level of service and commitment to Casterton and we thank them all for their work at CMH for our community.
CMH has also achieved 92% of its commitments under the Statement of Priorities with the
Department of Health & Human Services. This has been a major achievement in fulfilling these deliverables which in turn provide improvements in care and service delivery for the Casterton community. These achievements are provided in detail later in this report.
CMH also under its own Strategic Plan 2013/2015 has achieved many of the Key Performance
Indicators set and this reflects the sound work of the Executive and Board of Management.
These achievements can be viewed on the inside cover of this report.
CMH continues to collaborate with health agencies across the Barwon South West Region in providing best possible care in the best time possible.
We work under a newly formed Barwon South
West Collaborative of Health Services including
Geelong, Warrnambool and Hamilton together with other health services in our region. This level of cooperation is needed if we are to maintain best possible care for our community and CMH will continue to be part of this collaborative for the benefit of our community.
The CMH Team:
In producing sound results for CMH the hospital operates in many areas, all of which make up our collective CMH team. The objective of this team is working for the best possible Person Centred outcomes for patient, resident and client care.
Catering services have improved meal delivery to
Glenelg House now providing the resident with an improved meal experience which has been very well accepted.
Cleaning services continue to be above state average levels in environmental external cleaning audits carried out during 2014/15. Well done to
Ellen (retired) and Jenelle our new supervisor and all staff.
The maintenance team keep CMH operating well and maintained in physical shape as well as providing services to some 95 Home Maintenance clients.
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
This is a great service assisting people to stay in their own home longer with relevant support services in this area.
Nursing Services continue their high standard of care and have taken on additional skills for increased services such as Dialysis. Major education and professional development opportunities are offered regularly and taken up by staff of the nursing division.
Student and Graduate Nurse Placements fulfil a major part of CMH is commitment to training others outside our facility and Mary-
Anne and the team are to be congratulated for this work on top of their direct care and clinical duties.
Administration personnel continue their important roles of support services to all functions within
CMH from IT Communications support, Health
Information and records maintenance, finance reporting to the Department of Health & Human
Services and to the Board, payroll and Human
Resource management, Quality & Safety reporting and the complex level and volume of compliance reporting.
To Barb and staff we thank you for your dedicated work and support of CMH.
Aged Residential Services staff under Karen have once again performed in an exemplary manner dealing with many changes under the Aged Care
Act and Federal Government requirements and at the same time fulfilling their main focus of care to our residents. Providing outstanding care, social activities, and overall a person centred approach to all.
To our Primary Health Care Team inclusive of Day
Centre, District Nursing, Community Health, Allied
Health and other visiting specialists and support services we thank you for contributing again to another successful year for CMH. To our
Ambulance Service team headed up by Geoff our community salutes you all for the time, response rates and first response care which is always provided.
To our Medical Officers, Dr Brian Coulson, Dr Greta
Prozesky and team your 24/7 support to CMH and our community is to be applauded and we look forward to your ongoing recruitment for the future.
Owen P Stephens
Chief Executive Officer
Casterton
20 th August 2015
Of course to you our community, your contribution to fundraising and volunteer tasks and associated support to CMH is to be commended. Special mention is noted for the Murray to Moyne team for its continuing success in fundraising for CMH
($16,237.94) in 2014/15 and to all other contributors no matter how small or large your input, it is all very much appreciated.
Finally to my fellow Board Members and the
Executive Management team of Owen and Mary-
Anne, your input, vision and support of CMH for and on behalf of our community is to be commended. The future for CMH will continue to progress while we all work as a cohesive unit and team here at Casterton and in collaboration across the Barwon South West Region.
In conclusion I commend the 107 th Annual Report to you the Community and request your on-going support of the Casterton Memorial Hospital and its hard working team.
In accordance with the Financial Management Act
1994, I am pleased to present the Report of
Operations for the Casterton Memorial Hospital for the year ending 30 June, 2015.
Mr Graham Sheppard
Board Chair
20 th August, 2015
I, Owen Stephens, certify that the Casterton
Memorial Hospital has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. The Casterton Memorial Hospital has critically reviewed these controls and processes during the year.
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
The Victorian Government's priorities and policy directions are outlined in the Victorian Health Priorities Framework
Priorities Framework 2012-2022.
In 2014-15 Casterton Memorial Hospital achieved the following outcomes within the 7 policy directions:
Developing a system that is responsive to people’s need
Improving every
Victorians health status and experiences
Expanding Service, workforce and system capacity



Develop an organisational policy for the provision of safe, high quality end of life care in acute and subacute settings, with clear guidance about the role of and access to specialist palliative care
Collaboration with Regional Palliative
Care network to determine process for best practice of the individual
 Use Consumer feedback to improve person and family centred care and patient experience.
 Support implementation of the Victorian
Health & Wellbeing Plan 2011-15 through collaboration with key partners such as local Government, Medicare
Locals, community Health services and other agencies.

Develop and implement a workforce immunisation plan that includes preemployment screening and immunisation assessment for existing staff that work in high risk areas in order to align with
Australian infection control guidelines.
Support excellence in clinical training through productive engagement in clinical training networks and developing health education partnerships across the continuum of learning.


Review CMH Advanced Care planning and palliative care policies
Develop a clinical care pathway for palliative care patients and residents within
CMH facility
 Through the CMH Community
Advisory Group, scrutinise consumer feedback through the VHES and CMH qualitative surveys to identify opportunities to improve patient experience.

Collaborate with the Glenelg
Shire, SGG PCP and Primary
Healthcare Network to implement relevant parts of the Victorian Health &
Wellbeing plan 2011-2015.

Review existing processes and procedures to develop robust workforce immunisation policies and practice.
 Achieve 95% staff immunisation rate and 100% in high risk areas.
 Deliver professional and post graduate clinical education for staff and students in collaboration with clinical training networks.
 Updated policy

ACP Register listing

End of Life Care Pathway form implementation.

Client
Satisfaction with
End of Life Care.
 High ranking satisfaction levels against peers.

Continued high patients experience and satisfaction rates for
CMH.
 CMH up-dated Model of
Care with most recent data and Government
Health and Wellbeing directions.
 Improved Primary
Healthcare Network
Participation and collaboration


All staff sign off on policy.
 Reduced staff sick leave.
 CMH not affected by outbreak.
 Post Grad positions

Participation with Clinical
Placements.
Increasing the systems financial sustainability and productivity

Reduce health service administrative costs.

Through the Sub-Regional
Corporate Services group, realise efficiencies through improved project workforce capacity for internal audit functions and cost of Annual
Report production.

Consortium Contract in place by March, 15.
 Improved workforce sharing and support.

Reduced project Contractor costs.
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Implementing
Continuous improvements and innovation.
Increasing
Accountability and transparency
Improving utilisation of e-health and communications technology
 Drive improved health outcomes through strong focus on patient centred care in the planning, delivery and evaluation of services and the development of new models for putting patients first.


Undertake an annual Board assessment to identify and develop board capability to ensure all board members are well equipped to effectively discharge their responsibilities.
Demonstrate a strategic focus and commitment to aged care by responding to community need as well as the Commonwealth Living
Longer Living Better reforms.
 Trial, implement and evaluate strategies that use e-health as an enabler of better patient care.
 Utilize tele-health to better connect service providers and consumers to appropriate and timely services.

Ensure local ICT strategic plans are in place.

Establish a continuous improvement map and evidence register across the organisation.

Map in place and continually being revised and added to.

Conduct an annual Board of
Management individual and group assessment of capability.

Conduct formalised training and education around clinical governance and risk management

Continue participation in the
Aged Care Readiness working group to analyse reform detail and its implications for CMH.
 Develop collaborative partnerships within the region and with specialist clinicians to improve the utilisation of e-health through the
“Strengthening Health Services’ initiative.
 Increase community access to video conference and Skype for individual consultations.

Complete a CMH local ICT Strategic plan with support from the SWARH
Alliance.
 Improved Board understanding and participation in management of critical
Governance functions of
CMH.
 Effective measurement systems and dash board reporting to Board.
 Understanding better our aged care business.
 Data on numbers of services provided.
 Collaborative Links established.
 Increased utilisation of this service reducing travel and stress to local elderly persons.

Improved services access.
 User Satisfaction

Clear strategic vision and plan for ICT in conjunction with SWARH collaborative.
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Financial Performance
Operating Result
Annual Operating Result ($m)
Target
0.02
2014/15 Actual
0.13
Cash Management
Creditors (average payment days)
Debtors (average collection days)
< 60 days
< 60 days
35 days
37 days
Asset Management
Basic Assets Management Plan
Service Performance
Quality and Safety
Health service Accreditation
Residential aged care accreditation
Cleaning standards
Health care worker immunisation - influenza
Submission of data to VICNISS
(1)
Hand Hygiene Program Qrt 2
Hand Hygiene Program Qrt 3
Hand Hygiene Program Qrt 4
Full compliance
Target
Full compliance
Full compliance
Full compliance
75
Full compliance
75
77
80
Achieved
2014/15 Actual
Achieved
Achieved
Achieved
95.5 - Achieved
Achieved
81 - Achieved
80 - Achieved
86 - Achieved
Governance, Leadership and Culture
People Matter Survey - Patient Safety Culture
Patient Experience and Outcomes
Victorian Health Experience Survey
80 94 - Achieved
Full compliance Not Achieved
(1) VICNISS i s the Vi ctori a n Hos pi tal Acqui red Infection Survei l l a nce Sys tem.
90%
85%
80%
75%
70%
65%
60%
CMH Hand Hygiene - Total Compliance Rates 2013/14 - 14/15
77%
2014 (1)
79%
2014 (2)
81%
2014 (3)
Total Hand Hygiene Compliance Results CMH
80%
2015 (1)
Acceptable Level
86%
2015 (2)
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Funding Type
Small Rural
Small Rural HACC (Service Hours)
Small Rural Primary Health (Service Hours)
Small Rural Residential Care (Bed Days)
2014-15 Activity Achievement
10,345
563
10,936
800000
600000
400000
200000
KWH's (Peak & Off Peak)
Cost
0
2013-14 2014-15
Power is the facilities major source fo energy
80000
60000
40000
20000
0
2013-14 2014-15
LPG primarily used for hot water, usage has increased however costs have decreased.
Cost
Litres
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton and district community members, businesses, service groups and fund raising committees continue to support the activities, planning and development of our facility. This support is very much valued and reinforces our strong community spirit.
During 2014/15, CMH fundraising committees and the community have contributed $33,371 to our facility, to assist with maintaining our modern well-equipped hospital, aged care facility and community health development.
We also acknowledge and appreciate the general donations received from families, community members, staff and estates.
Volunteers provide purposeful activities and roles, and as such are greatly appreciated by staff and the community we serve. Their contribution extends to activities including
11 delivery of Meals on Wheels, bus driving, visiting, entertainment and diversional and lifestyle activities. It is through our volunteers that we are able to foster community connection and participation for our residents and their families.
The Hospital also appreciates the input and contributions from the businesses and the broader community through our community surveys, questionnaires and Hospital Card
Program. This community spirit contributes to
Casterton Memorial Hospital being a proud facility and also supports our continual effort to provide the best quality services to meet the changing needs of our community.
The Board of Management sincerely thanks all
Casterton Memorial Hospital supporters for their generous, tireless and invaluable support during 2014/15.
Fundraising Committee
CMH Hospital Social Club
CMH Murray to Moyne
CMH Hospital Card Program
CMH staff
Friends of Glenelg House
1,000.00
16,237.94
5,300.00
2,222.10
300.00
Community Member Support
In Memory of Mrs Betty Lamb
In Memory of Mrs Bonnie Humphries
In Memory of Mr Les Smith
In Memory of Mrs Margaret Jackson
In Memory of Mr Mick Sullivan
In Memory of Mrs Shirley Cottier
In Memory of Mr Stuart Kibble
In Memory of Mrs Val Ross
Allan MacDonald
Kelpie Festival
Margaret Widdicombe
Anonymous
Pauline Hall
300.00
50.00
190.00
150.00
125.00
1,410.00
70.00
180.00
20.00
101.00
250.00
1,270.00
10.00
Estates
Equity Trustees - Estate Kathleen Murphy
Equity Trustees - Estate Louise Henty
1,000.00
834.80
Equity Trustees - Estate John Russell MacPherson 1,550.00
Equity Trustees - Estate William Heath
Total Donations
800.00
33,370.84

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
In accordance with the Financial Management Act 1994, I am pleased to present the Report of
Operations for the Casterton Memorial Hospital for the year ending 30 June, 2015.
Mr Graham Sheppard
Board Chair
20 th August, 2015
Five Year Financial Comparative Statement
Total Revenue
Total Expenditure
Net result for the year
Share of Comprehensive Income Joint Venture
Asset Revaluation (increments/decrements)
Retained Surplus/Accumulated Deficit
2015
$000
9,024
9,553
-529
-
4,886
2014
$000
9,150
9,626
-477
-
9,656
5,415
2013
$000
9,045
9,688
-644
-
1,406
5,892
2012
$000
8,746
9,177
-431
-
-
6,536
2011
$000
8,233
8,601
-367
-
6,967
-
Total Assets
Total Liabilities
Net Assets
28,279
3,596
24,683
27,525
2,313
25,212
18,409
2,377
16,033
17,435
2,165
15,271
17,710
2,008
15,702
Total Equity 24,683 25,212 16,033 15,271 15,702
All fees charged by the Hospital for Acute and Community services are in accordance with the directives of the
Department of Health, and Aged Care fees as directed by the Commonwealth Department of Health and
Ageing.
Patient Debtors Outstanding as at 30 th
June 2015
Under 30 days 31-60 days 61-90 days over 90 days Total 14/15 Total 13/14
Private Inpatients 11,697 0 10568 0 22,265 11,380
Non In patients (HACC/ DVA) 11,643
Residential Care 66,237
0
4,645
21.6
-1490.25
133.4
10,661
11,798
80,054
7,690
81,098
Efficiency Indicators
Average Collection Days
2014/15 2013/14
Patient/Resident/Client Revenue Turnovers
- Private, Compensable, Nursing Home Type
- Residential Care
- Non Admitted Patient Fees
Trade Creditor Turnover
Funded Activity on the basis of Weighted Inlier Equivalent Separations (WIES) and bed days. The data as at time of print has not received final Victorian Admitted Episode Dataset (VAED) consolidation sign off.
Activity
Weighted Inlier Equivalent Separations (WIES)
2014/15
Activity
Achieved
Performance to Target %
Aged Care
2014/15 Bed
Days
20113/14
Occupancy %
Residential High Care 10936 99.87% WIES Public
WIES Private
WIES Renal (Public & Private)
WIES Public & Private Total
WIES DVA
WIES TAC
WIES Total
301.57
23.3
32.49
357.36
17.96
0.26
375.58
0.861628571
0.18203125
216.60%
100%
26.00%
Nursing Home Type
NHT Non DVA
NHT DVA
Nursing Home Type Bed Days Total
2014/15 Bed
Days
642
254
896
Performance to Target % nil Target
86.00%
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Hospital
Total Multistay Inpatient Separations*
Total Same Day Separations*
Bed Days*
Total Wies
% Occupancy Rate Staffed Beds
Average Length of Stay **
% Public Bed Days
% Private Bed Days
Obstetrics / Gynaecology
Operations / Procedures
Urgent Care Presentations
Glenelg House Residential Care
Residents Accommodated
Bed Days
Average Daily Occupancy
% Occupancy Rate Full Year
Planned Activity Group
Attendances
District Nurse
Home Visits
Kilometres Travelled
Community Health
Attendance (contacts)
2013/14 2014/15
250 263
419
2,969
337.37
54%
2.8
70%
30%
10
126
1,325
444
2,867
375.58
52%
2.8
77%
23%
18
130
1,455
37
10,941
29.97
99.92%
42
10,936
29.96
99.87%
1,463
4,298
17,733
1,281
4,998
18,522
Other services facilitated from
Casterton Memorial Hospital
through private practitioners include:
· Audiology
· Child Maternal Health
· Visiting Medical Specialists
· Radiology Services
· Ophthalmology Services
· Podiatry Services
· Psychology Services
· Drug & Alcohol
.Physiotherapy
.Speech Therapy
* Does not include Newborn transfers
** Excludes Nursing Home Type
*** Includes inpatients
506 545
Allied Health
Physiotherapy Attendance ***
Speech Therapy Attendance ***
Dietetics ***
Occupational Therapist ***
Meals Produced
Hospital / Residential Care / Other
Meals on Wheels (HACC Assessed)
2,274
7
129
87
2,220
-
104
79
69,625
4,234
63,098
4,266
Home Maintenance Program (HACC Service
Number of Clients
Number of visits
Number of Hours
98
1,051
1,115
95
1,234
1,084
The Casterton Memorial Hospital conducts its activities with compliance to many Government Acts,
Regulations and Standards. It is a legislative requirement that we provide, where applicable, specific information in support of our compliance.
The Casterton Memorial Hospital is a public health facility established under the Health Services Act 1988.
The responsible Ministers are detailed on Page 2 of this report.
I, Owen Stephens, certify that the Casterton Memorial Hospital has complied with Ministerial Direction
4.5.5.1 - Insurance .
Owen P Stephens
Chief Executive Officer
Casterton
20 th August 2015
.
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Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton Memorial Hospital reports no lost days in 2013/2014 through industrial accidents or disputes
Occupational Health & Safety forms an integral part of the day to day operation of
Casterton Memorial Hospital. The Safe
Environment / OH&S Committee consist of representatives from each of the designated work group areas as well as management representatives. This committee meets quarterly to discuss and address any concerns or issues that may arise and undertake regular inspections of the workplace. All Designated
Work Group Representatives undergo the initial 5 Day Course for OH&S Representatives along with regular refresher courses. Staff are encouraged to act and work in a safe manner and to report any incidents or near misses.
Through the operation of the Safe
Environment/OH&S Committee, Minimal
Handling Committee, staff education and incident reporting, through VHIMS, Casterton
Memorial Hospital is continuing to ensure the safety of staff, patients and visitors.
The Casterton Memorial Hospital Work-Safe
Industry indicative performance rating is
0.755211. This represents that the comparison of Casterton Memorial Hospital claim costs compared to remuneration is 24.47% better than the average for our industry over the past three years. No workcover claims were registered during 2014-2015 and the facility has currently a nil claims history.
During the 2014/1 year Casterton Memorial
Hospital employed a total of 115 staff, 37 fulltime, 65 part time and 13 casual across the labour categories as detailed in the following table. Statistics provided are consistent with information provided in the entity’s MDS/F1 datasets which are reported on a monthly basis to the Department of Health.
Code of Conduct for
Victorian Public Sector Employees (No 1 )2007 and CMH Code of Conduct Policy.
Labour Category
Nursing
Administration and Clerical
Hotel and Allied Services
JUNE
Current Month FTE
2014 2015
43.46
8.91
23.61
43.67
8.57
23.02
2014
43.28
8.94
24.19
JUNE
YTD FTE
2015
42.67
8.37
22.94
In compliance with the requirements of FRD
22C Standard Disclosures in the Report of
Operations, details in respect of the items listed below have been retained by Casterton
Memorial Hospital and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):
(a) A statement of pecuniary interest has been completed;
(b) Details of publications produced by the
Department about the activities of the Health
Service and where they can be obtained;
(c) Details of changes in prices, fees, charges, rates and levies charged by the Health Service;
(d) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the
Health Service and its services;
(e) Details of assessments and measures undertaken to improve the occupational health and safety of employees;
(f) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations;
(g) A list of major committees sponsored by the Health Service, the purposes of each committee, and the extent to which the purposes have been achieved;
(h) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Carers Recognition Act 2012
The Act recognises, promotes and values the role of people in care relationships. Casterton
Memorial Hospital understands the different needs of persons in care relationships and that care relationships bring benefits to the patients, their carers and to the community. Casterton Memorial
Hospital takes all practicable measures to ensure that its employees, agents and carers have an awareness and understanding of the care relationship principles and this is reflected in our commitment to a model of patient and family centred care and to involving carers in the development and delivery of our services.
Consultancies
During the 2014/15 financial year Casterton
Memorial Hospital reports $15,437 in consultancy costs, (exclusive of GST) less than $10,000 per engagement. No of engagements =3
Building Act 1993
Casterton Memorial Hospital complies with the building and maintenance provisions of the
Building Act 1993 in accordance with the Minister for Finance Guidelines Building Act 1993/Standards for Publicly Owned Buildings/November, 1994.
Freedom of Information
The Victorian Freedom of Information Act 1982
(FOI Act) provides the right for members of the public to obtain information held by the Casterton
Memorial Hospital and consumers are entitled to access their medical record through the Freedom of Information process. Four (4) Freedom of
Information requests were processed this Financial
Year. Applications are to be directed to the nominated Officer, Mr Owen Stephens. A fee, plus charges for associated costs may apply in accordance with the Act.
Protective Disclosure Act 2012 (the Act)
The Casterton Memorial Hospital has policies and procedures in place to enable total compliance with the Act, and provides a safe environment in which disclosures can be made, people are protected from reprisal and the investigation process is clear and provides a fair outcome. The privacy of all individuals involved in a disclosure is assured of protection at all times. Casterton
Memorial Hospital is committed to the principals of the Act and at no time will improper conduct by the Casterton Memorial Hospital or any of its employees be condoned.
Disclosures
Since the introduction of the Act in 2012 there have been no disclosures received and no notification of disclosures to the Ombudsman or any other external agency.
National Competition Policy
Casterton Memorial Hospital has implemented competitive neutral pricing principles to all contracts for services provided, to ensure a level playing field is maintained in accordance with
National Competition Policy including the requirements of the Government policy statement,
Competitive Neutrality Policy, Victoria; and subsequent reforms.
Contract Disclosures
There were no contracts commenced or completed during this reporting period to which the Victorian
Industry Participation Policy (VIPP) Act 2003
applied.
Equal Employment Opportunity – Merit & Equity
The Board of Management at Casterton Memorial
Hospital has a firm commitment to ensure equity principles in the workforce are maintained. Human
Resource policies and practices give due consideration to public authorities ‘Code of
Conduct’ and the Equal Employment Opportunity
(EEO) Act, 1995. The facility provides extensive opportunities for staff professional development.
I , Owen Stephens certify that the Casterton Memorial Hospital has risk management processes in place consistent with the AS/NZS Risk Management Standard and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The Audit Committee verifies this assurance and that the risk profile of the Casterton Memorial Hospital has been critically reviewed within the last 12 months.
Owen P Stephens
Chief Executive Officer
Casterton
20 th August 2015
15

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
The financial statements of account for the year ended 30 June, 2015 have been completed in accordance with the Australian Audit and Accounting
Standards and the Financial Management Act 1994.
We have completed the year with a net surplus result, before capital and specific items, of $132,855.
This positive result was due mainly to new treatment of leases directed by the Auditor General and thus has improved our operational result. This has seen a significant increase from our 2013/14 result of
$16,191 on budget and is comparable to our
2012/13 result of $22,878. This is a pleasing result given the constraints of a tight and less flexible budget as compared to prior years. Contributing items to our positve 2014/15 operating result include well managed overall expenditure, consistent private patient revenue and our over target position for Department of Health funded patient activity.
Entity Comprehensive Result of ($528,897) is a
$52,389 decrease on the prior year result. This result is again due to the new treatment of leases by the
Auditor General.
Our current asset ratio of 1.4 is slighlty down on the
1.50 reported in 2014/15. Casterton Memorial
Hospital has consistently over the past 5 years recorded an asset ratio well above the .7
Department benchmark.
Cash has been well managed with cash on hand as at
30 June 2014 totalling $2,935,855 (excluding Joint
Venture & Accomodation payments). We have still managed an increase on our 2014/14 holdings by
$226,954. Current year interest earned on term deposits was $101,206.
Cash holdings combined with current assets remaining in excess of current liabilities by
$1,236,833 confirms a stable liquidy position for
Casterton Memorial Hospital as at 30 June 2015.
Entity operating expenditure for 2014/15 year totalled $8.480M, a 3% decrease on the prior year.
Salary, employee benefits and other labour costs accounted for $6.0M or 71% of 2014/15 total which is consistent with the prior year.
The $2.48M balance, non salary related costs, includes major items of $1.2M Joint Venture in leasing/expenditure, $0.434M supplies & consumables, $0.286M IT costs and $0.179M fuel, light & power expenses.
Total revenues for the current year totalled $8.93M, a 2.4% decrease on prior year with operating revenue of $8.48M and $0.450M being Capital
Purpose income. Total cash grants received from the
Department in 2014/15 was $4,817,042recorded a shortfall of $384,759 from the previous year. The offset of this shortfall was the recall of $263,300 and reduced activity funding of $137,121. Capital grants received in 2014/15 totalled $42,877 compared to
$141,326 in the prior year.
The Hospital exceeded set targets with DVA inpatients, Nursing Home Type inpatients, Dialysis treatments and met target for TAC. Our 30 bed high care residential activity remained consistent with a full year occupancy rate of 99.92%
Overall the 2014/15 finanical year for Casterton
Memorial Hospital has been very pleasing. We have managed our expenditure within less than a 1% increase on prior year, maintained a bottom line revenue above budget, , increased our cash on hand and retained our positive asset ratio. We have continued our clinical training program with the placement of two Nurse Graduates in 2015, retained our level of staff resources and provided a consistent and balanced range of services to our community.
Casterton Memorial Hospital achieved its financial targets for the 2014/15 financial year and plans to sustain this positive performance in 2015/16.
B Toma
AOG/Finance
20 th August 2015
16

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
th
th
Chief Finance & Accounting
th
th

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
18

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
19

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton Memorial Hospital Annual Report 2014/2015
Casterton Memorial Hospital
Comprehensive Operating Statement
For the Year Ended 30 June 2015
Note
Revenue from Operating Activities
Revenue from Non-operating Activities
Employee Expenses
Non Salary Labour Costs
Supplies & Consumables
Joint Venture Expenses
Administrative Expenses 3
Other Expenses From Continuing Operations 3
Share of net result of associates and joint ventures accounted for using the equity method 10
3
3
3
2
2
3
Net Result Before Capital &
Specific Items
Capital Purpose Income
Depreciation
Finance Costs
NET RESULT FOR THE YEAR
Other comprehensive income
Net fair value revaluation on Non
Financial Assets
COMPREHENSIVE RESULT FOR THE YEAR
2
4
5
Total
2015
$
Total
2014
$
8,392,357
91,110
(6,112,488)
(332,887)
(440,744)
(537,894)
(136,857)
(783,182)
8,580,312
97,326
(5,983,321)
(296,474)
(441,344)
(824,082)
(385,340)
(727,908)
(6,560) (2,978)
132,855 16,191
450,104
(1,101,792)
(10,064)
366,421
(859,120)
-
(528,897) (476,508)
9,656,169
(528,897) 9,179,661
This Statement should be read in conjunction with the accompanying notes.
20

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton Memorial Hospital Annual Report 2014/2015
As at 30 June 2015
Current Assets
Cash and Cash Equivalents
Receivables
Inventories
Total Current Assets
Non-Current Assets
Receivables
Investments Accounted for using the Equity
Method
Property, Plant & Equipment
Investment Properties
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities
Payables
Provisions
Borrowings
Other Liabilities
Total Current Liabilities
Non-Current Liabilities
Provisions
Borrowings
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
14
13
EQUITY
Property, Plant & Equipment Revaluation Surplus 16a
Contributed Capital
Accumulated Surpluses
16b
16c
TOTAL EQUITY 16d
Commitments
Contingent Assets and Capital Liabilities
19
20
12
14
13
15
7
10
9
11
6
7
8
Note Total
2015
$
4,242,178
317,565
75,621
4,635,364
Total
2014
$
2,660,612
332,623
72,279
3,065,514
24,683,266
68,480
3,398,531
3,782,067
19,796,870
336,541
27,820
23,415,608
50,000
23,829,969
28,465,333
378,649
1,562,017
1,389,385
216,533
167,003
383,536
2,293,608
2,592,788
24,683,266
307,432
34,380
24,012,366
50,000
24,354,178
27,469,692
370,638
-
-
2,050,268
207,261
-
207,261
2,257,529
25,212,163
19,796,870
2,293,608
3,121,685
25,212,163
This Statement should be read in conjunction with the accompanying notes.
21

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
22

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton Memorial Hospital Annual Report 2014/2015
For the Year Ended 30 June 2015
Note Total
2015
$
Total
2014
$
CASH FLOWS FROM OPERATING ACTIVITIES
Operating Grants from Government
Patient and Resident Fees Received
Donations and Bequests Received
GST Received from/(paid to) ATO
Interest Received
Other Receipts
Employee Expenses Paid
Non Salary Labour Costs
Payments for Supplies & Consumables
Fee for Service Medical Officers
Other Payments
Cash Generated from Operations
Capital Grants from Government
NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES
17
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Non-Financial Assets
Proceeds from sale of Non-Financial Assets
NET CASH INFLOW/(OUTFLOW)
FROM INVESTING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH HELD
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT
END OF PERIOD 6
6,691,076
1,042,958
33,371
(1,585)
91,110
1,032,396
(6,220,831)
(99,131)
(819,281)
(233,756)
(850,285)
666,042
28,700
6,359,755
1,003,649
39,264
(2,461)
97,326
1,421,309
(5,914,524)
(94,507)
(1,611,883)
(201,967)
(997,100)
98,861
42,877
694,742 141,738
(502,561)
-
(212,264)
27,491
(502,561) (184,773)
192,181
2,660,612
2,852,793
(43,035)
2,703,647
2,660,612
This Statement should be read in conjunction with the accompanying notes
23

10
11
12
13
6
7
4
5
8
9
14
15
16
Note
1
Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Statement of Significant Accounting Policies
Page
24-43
2
3
44
45
3a
17
18
19
20
21
22
23
Analysis of Revenue by Source
Analysis of Expenses by Source
Analysis of Expenses and Revenue by Internally Managed and Restricted
Specific Purpose Funds for Service Supported by Hospital and Community
Initiatives
Depreciation
Finance Costs
Cash & Cash Equivalents
Receivables
Inventories
Property, Plant & Equipment
Investments Accounted for using Equity Method
Investment Properties
Payables
Borrowings
Provisions
Other Liabilities
Reserves
Reconciliation of Net Result for year to Net Cash Inflow/(Outflow) from
Operating Activities
Financial Instruments
Commitments to Expenditure
Finance Leases
Contingent Assets and Contingent Liabilities
Remuneration of Auditors
Ex Gratia Payments
46
61
66-67
68
68
69
69
69
56
57
57
58
46
47
47
48
48
49-55
59
60
60
24
25
26a
26b
27
28
Operating Segments
Jointly Controlled Operations and Assets
Responsible Persons Disclosure
Executive Officer Disclosure
Events Occurring after th Balance Sheet Date
Superannuation
70
71
72
72
73
73
24

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
N o t t e 1 : : S u m m a r r y o f f s s i i g n i i f f i i c a n t t a c c o u n t t i i n g p o l l i i c i i e s s
These annual financial statements represent the audited general purpose financial statements for Casterton
Memorial Hospital for the period ending 30 June 2015. The purpose of the report is to provide users with information about the Health Services’ stewardship of resources entrusted to it.
(a) Statement of compliance
These financial statements are general purpose financial statements which have been prepared in accordance with the Financial Management Act 1994 and applicable AASs, which include interpretations issued by the
Australian Accounting Standards Board (AASB). They are presented in a manner consistent with the requirements of AASB 101 Presentation of Financial Statements.
The financial statements also comply with relevant Financial Reporting Directions (FRDs) issued by the
Department of Treasury and Finance, and relevant Standing Directions (SDs) authorised by the Minister for
Finance.
The Health Service is a not-for profit entity and therefore applies the additional Aus paragraphs applicable to
“not-for-profit” Health Services under the AASs.
The annual financial statements were authorised for issue by the Board of Casterton Memorial Hospital on
(24/08/2015)
(b) Basis of accounting preparation and measurement
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.
The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2015, and the comparative information presented in these financial statements for the year ended 30 June 2014.
The going concern basis was used to prepare the financial statements.
These financial statements are presented in Australian dollars, the functional and presentation currency of the
Health Service.
The financial statements, except for cash flow information, have been prepared using the accrual basis of accounting. Under the accrual basis, items are recognised as assets, liabilities, equity, income or expenses when they satisfy the definitions and recognition criteria for those items, that is they are recognised in the reporting period to which they relate, regardless of when cash is received or paid.
The financial statements are prepared in accordance with the historical cost convention, except for:
 non-current physical assets, which subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made and are re-assessed with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair values;
 derivative financial instruments, managed investment schemes, certain debt securities, and investment properties after initial recognition, which are measured at fair value with changes reflected in the comprehensive operating statement (fair value through profit and loss); and
 available-for-sale investments which are measured at fair value with movements reflected in equity until the asset is derecognised (i.e. other comprehensive income – items that may be reclassified subsequent to net result).
 the fair value of assets other than land is generally based on their depreciated replacement value.

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AASs that have significant effects on the financial statements and estimates relate to:
 the fair value of land, buildings, infrastructure, plant and equipment, (refer to Note 1(K));
 superannuation expense (refer to Note 1(H);
 actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates (refer to Note 1(L)); and
Consistent with AASB 13 Fair Value Measurement, Casterton Memorial Hospital determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, investment properties and financial instruments, and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant FRDs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, Casterton Memorial Hospital has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
In addition, Casterton Memorial Hospital determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria (VGV) is Casterton Memorial Hospital’s independent valuation agency.
Casterton Memorial Hospital, in conjunction with VGV monitors the changes in the fair value of each asset and liability through relevant data sources to determine whether revaluation is required.
(c) Reporting entity
The financial statements include all the controlled activities of the Casterton Memorial Hospital.
Its principal address is:
63-69 Russell St
CASTERTON
Victoria 3311.
A description of the nature of Casterton Memorial Hospital’s operations and its principal activities is included in the report of operations, which does not form part of these financial statements
26

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Objectives and funding
Casterton Memorial Hospital’s overall objective is to meet the health and well being needs of our community by delivering a comprehensive range of high quality, innovative and valued health services, as well as improve the quality of life to Victorians.
Casterton Memorial Hospital is predominantly funded by accrual based grant funding for the provision of outputs.
(d) Principles of consolidation
Intersegment Transactions
Transactions between segments within the Casterton Memorial Hospital have been eliminated to reflect the extent of the Health Service’s operations as a group
Associates and joint ventures
Associates and joint ventures are accounted for in accordance with the policy outlined in Note 1(f) changes in accounting policy, and 1(k) financial assets.
Jointly controlled assets or operations
Interests in jointly controlled assets or operations are not consolidated by Casterton Memorial Hospital, but are accounted for in accordance with the policy outlined in Note 1(k) Financial Assets.
(e) Scope and presentation of financial statements
Fund Accounting
The Casterton Memorial Hospital operates on a fund accounting basis and maintains three funds: Operating,
Specific Purpose and Capital Funds. The Health Service’s Capital and Specific Purpose Funds include unspent capital donations and receipts from fund-raising activities conducted solely in respect of these funds.
Services Supported By Health Services Agreement and Services Supported By Hospital and Community
Initiatives
Activities classified as Services Supported by Health Services Agreement (HSA) are substantially funded by the Department of Health and Human Services and includes Residential Aged Care Services (RACS) and are also funded from other sources such as the Commonwealth, patients and residents, while Services
Supported by Hospital and Community Initiatives (H&CI) are funded by the Health Service's own activities or local initiatives and/or the Commonwealth.
Residential Aged Care Service
The Glenelg House Nursing Home Residential Aged Care Service operations are an integral part of the Casterton
Memorial Hospital and shares its resources. An apportionment of land and buildings has been made based on floor space. The results of the two operations have been segregated based on actual revenue earned and expenditure incurred by each operation in Note 2 and 3 to the financial statements.
Comprehensive operating statement
The comprehensive operating statement includes the subtotal entitled ‘net result before capital & specific items’ to enhance the understanding of the financial performance of Casterton Memorial Hospital. This subtotal reports the result excluding items such as capital grants, assets received or provided free of charge,
27

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015 depreciation, expenditure using capital purpose income and items of an unusual nature and amount such as specific income and expenses. The exclusion of these items is made to enhance matching of income and expenses so as to facilitate the comparability and consistency of results between years and Victorian Public
Health Services. The ‘net result before capital & specific items’ is used by the management of Casterton
Memorial Hospital, the Department of Health and Human Services and the Victorian Government to measure the ongoing operating performance of Health Services.
Capital and specific items, which are excluded from this sub-total, comprise:
 capital purpose income, which comprises all tied grants, donations and bequests received for the purpose of acquiring non-current assets, such as capital works, plant and equipment or intangible assets. It also includes donations of plant and equipment (refer Note 1 (g)). Consequently the recognition of revenue as capital purpose income is based on the intention of the provider of the revenue at the time the revenue is provided.
 impairment of financial and non-financial assets, includes all impairment losses (and reversal of previous impairment losses), which have been recognised in accordance with Notes 1 (j)
 depreciation and amortisation, as described in Note 1 (h);

 assets provided or received free of charge (refer to Notes 1 (g) and (h)); and expenditure using capital purpose income, comprises expenditure which either falls below the asset capitalisation threshold or doesn’t meet asset recognition criteria and therefore does not result in the recognition of an asset in the balance sheet, where funding for that expenditure is from capital purpose income.
‘Other economic flows; are changes arising from market remeasurements. They include:
 gains and losses from disposals of non-financial assets;
 revaluations and impairments of non-financial physical and intangible assets;
 remeasurement arising from defined benefit superannuation plans; and
 fair value changes of financial instruments.
Balance sheet
Assets and liabilities are categorised either as current or non-current (non-current being those assets or liabilities expected to be recovered/settled more than 12 months after reporting period), are disclosed in the notes where relevant.
The net result is equivalent to profit or loss derived in accordance with AASs.
Statement of changes in equity
The statement of changes in equity presents reconciliations of each non-owner and owner changes in equity from opening balance at the beginning of the reporting period to the closing balance at the end of the reporting period. It also shows separately changes due to amounts recognised in the comprehensive result and amounts recognised in other comprehensive income.
Cash flow statement
Cash flows are classified according to whether or not they arise from operating activities, investing activities, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows.
28

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
For the cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current borrowings in the balance sheet.
Rounding
All amounts shown in the financial statements are expressed to the nearest dollar unless otherwise stated.
Minor discrepancies in tables between totals and sum of components are due to rounding.
(f) Change in accounting policies
Subsequent to the 2013-14 reporting period, the following new and revised Standards have been adopted for the first time in the current period with their financial impacts disclosed.
AASB 10 Consolidated financial statements
AASB 10 provides a new approach to determine whether an entity has control over another entity, and therefore must present consolidated financial statements. The new approach requires the satisfaction of
all three criteria for control to exist over an entity for financial reporting purposes:
(a) The investor has power over the investee;
(b) The investor has exposure, or rights to variable returns from its involvement with the investee; and
(c) The investor has the ability to use its power over the investee to affect the amount of investor’s returns.
Based on the new criteria prescribed in AASB 10, Casterton Memorial Hospital has reviewed the existing arrangements to determine if there are any additional entities that need to be consolidated into the group. Based on this review Casterton Memorial Hospital has determined there are no additional entities required to be accordance with AASB10.
AASB 11 Joint Arrangements
In accordance with AASB 11, there are two types of joint arrangements, i.e. joint operations and joint ventures.
Joint operations arise where the investors have rights to the assets and obligations for the liabilities of an arrangement. A joint operator accounts for its share of the assets, liabilities, revenue and expenses. Joint ventures arise where the investors have rights to the net assets of the arrangement; joint ventures are accounted for under the equity method. Proportionate consolidation of joint ventures is no longer permitted.
Casterton Memorial Hospital has reviewed its existing contractual arrangements with other entities to ensure they are aligned with the new classifications under AASB 11.
Casterton Memorial Hospital has accounted for the following interest in associates and joint ventures as follows:

SWARH IT Alliance Joint Operation

PCP Joint Venture
AASB12 Disclosure of Interests in Other Entities
AASB 12 Disclosure of Interests in Other Entities prescribes the disclosure requirements for an entity’s interests in subsidiaries, associates and joint arrangements; and extends to the entity’s association with unconsolidated structured entities.
Casterton Memorial Hospital has disclosed information about its interests in associates and joint ventures, including any significants judgement and assumptions used in determining the type of joint arrangement in which it has an interest.
29

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Casterton Memorial Hospital has disclosed information about its interests in joint ventures, including any significant judgement and assumptions used in determining the type of joint arrangement in which it has an interest
Early adoption of new Standards
Accounting Standard AASB 2015-7 Fair Value disclosure of Not-for Profit Public Sector Entities was issued on
13 th July 2015 for application from 1 July 2016. Casterton Memorial Hospital has elected to adopt this standard early and apply the changes to the 2014-15 financial statements.
The amended standard provides relief to not-for –profit public sector entities from making certain specified disclosures about the fair value measurement of assets within the scope of AASB 116 Property, Plant and
Equipment which are held for their current services potential rather than to generate future cash inflows.
This is a disclosure impact only, with no current or future impact
(g) Income from transactions
Income is recognised in accordance with AASB 118 Revenue and is recognised as to the extent that it is probable that the economic benefits will flow to Casterton Memorial Hospital and the income can be reliably measured at fair value. Unearned income at reporting date is reported as income received in advance.
Amounts disclosed as revenue are where applicable, net of returns, allowances and duties and taxes.
Government Grants and other transfers of income (other than contributions by owners)
In accordance with AASB 1004 Contributions, government grants and other transfers of income (other than contributions by owners) are recognised as income when the Health Service gains control of the underlying assets irrespective of whether conditions are imposed on the Health Service’s use of the contributions.
Contributions are deferred as income in advance when the Health Service has a present obligation to repay them and the present obligation can be reliably measured.
Indirect Contributions from the Department of Health and Human Services
– Insurance is recognised as revenue following advice from the Department of Health and Human Services.
– Long Service Leave (LSL) – Revenue is recognised upon finalisation of movements in LSL liability in line with the arrangements set out in the Metropolitan Health and Aged Care Services Division Hospital
Circular 05/2013 (update for 2013-14).
Patient and Resident Fees
Patient fees are recognised as revenue at the time invoices are raised.
Private Practice Fees
Private practice fees are recognised as revenue at the time invoices are raised.
Revenue from commercial activities
Revenue from commercial activities such as commercial laboratory medicine is recognised at the time invoices are raised.
Donations and Other Bequests
Donations and bequests are recognised as revenue when received. If donations are for a special purpose, they may be appropriated to a surplus, such as the specific restricted purpose surplus.
Interest Revenue
Interest revenue is recognised on a time proportionate basis that takes in account the effective yield of the financial asset, which allocates interest over the relevant period.
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Sale of investments
The gain/loss on the sale of investments is recognised when the investment is realised.
Fair value of assets and services received free of charge or for nominal consideration
Resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another Health Service or agency as a consequence of a restructuring of administrative arrangements. In the latter case, such transfer will be recognised at carrying value. Contributions in the form of services are only recognised when a fair value can be reliably determined and the service would have been purchased if not received as a donation.
Other income
Other income includes non-property rental, dividends, forgiveness of liabilities, and bad debt reversals.
(h) Expense recognition
Expenses are recognised as they are incurred and reported in the financial year to which they relate.
Cost of goods sold
Costs of goods sold are recognised when the sale of an item occurs by transferring the cost or value of the item/s from inventories.
Employee expenses
Employee expenses include:
 wages and salaries;
 annual leave;
 sick leave;
 long service leave; and
 superannuation expenses which are reported differently depending upon whether employees are members of defined benefit or defined contribution plans.
Defined contribution superannuation plans
In relation to defined contribution (i.e. accumulation) superannuation plans, the associated expense is simply the employer contributions that are paid or payable in respect of employees who are members of these plans during the reporting period. Contributions to defined contribution superannuation plans are expensed when incurred.
Defined benefit superannuation plans
The amount charged to the comprehensive operating statement in respect of defined benefit superannuation plans represents the contributions made by the Health Service to the superannuation plans in respect of the services of current Health Service staff during the reporting period. Superannuation contributions are made to the plans based on the relevant rules of each plan, and are based upon actuarial advice.
Employees of the Casterton Memorial Hospital are entitled to receive superannuation benefits and the
Casterton Memorial Hospital contributes to both the defined benefit and defined contribution plans. The defined benefit plan(s) provide benefits based on years of service and final average salary.
The name and details of the major employee superannuation funds and contributions made by the
Casterton Memorial Hospital are disclosed in Note 28: Superannuation.
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Depreciation
All infrastructure assets, buildings, plant and equipment and other non-financial physical assets that have finite useful lives are depreciated (i.e. excludes land assets held for sale, and investment properties). Depreciation begins when the asset is available for use, which is when it is in the location and condition necessary for it to be capable of operating in a manner intended by management.
Intangible produced assets with finite lives are depreciated as an expense from transactions on a systematic basis over the asset’s useful life. Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less any estimated residual value over its estimated useful life. Estimates of the remaining useful lives, residual value and depreciation method for all assets are reviewed at least annually, and adjustments made where appropriate. This depreciation charge is not funded by the Department of Health and
Human Services. Assets with a cost in excess of $1000 are capitalised and depreciation has been provided on depreciable assets so as to allocate their cost or valuation over their estimated useful lives.
The following table indicates the expected useful lives of non current assets on which the depreciation charges are based.
Buildings
Plant & Equipment
Medical Equipment
Computers and Communication
Furniture and Fitting
Motor Vehicles
2015
2 to 40 years
8 to 10 years
8 to 10 years
1 to 5 years
8 to 10 years
1 to 5 years
2014
2 to 40 years
8 to 10 years
8 to 10 years
1 to 5 years
8 to 10 years
1 to 5 years
As part of the buildings valuation, building values were separated into components and each component assessed for its useful life which is represented above.
Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over the asset’s useful life.
Other operating expenses
Other operating expenses generally represent the day-to-day running costs incurred in normal operations and include:
Supplies and consumables
Supplies and services costs which are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held for distribution are expensed when distributed.
Bad and doubtful debts
Refer to Note 1 (k) Impairment of financial assets.
Fair value of assets, services and resources provided free of charge or for nominal consideration
Contributions of resources provided free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions, unless received from another agency as a consequence of a restructuring of administrative arrangements. In the latter case, such a transfer will be recognised at its carrying value.
Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.
(i) Other comprehensive income
Other comprehensive income measures the change in volume or value of assets or liabilities that do not result from transactions.
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Net gain/ (loss) on non-financial assets
Net gain/ (loss) on non-financial assets and liabilities includes realised and unrealised gains and losses as follows:
Revaluation gains/ (losses) of non-financial physical assets
Refer to Note 1(k) Revaluations of non-financial physical assets.
Net gain/ (loss) on disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal and is the difference between the proceeds and the carrying value of the asset at the time.
Net gain/ (loss) on financial instruments
Net gain/ (loss) on financial instruments includes: o realised and unrealised gains and losses from revaluations of financial instruments at fair value; o impairment and reversal of impairment for financial instruments at amortised cost (refer to
Note 1 (k)); and o disposals of financial assets and derecognition of financial liabilities
Revaluations of financial instrument at fair value
Refer to Note 1 (j) Financial instruments.
Share of net profits/ (losses) of associates and jointly controlled entities, excluding dividends.
Refer to Note 1 (d) Basis of consolidation.
Other gains/ (losses) from other comprehensive income
Other gains/ (losses) include: a.
the revaluation of the present value of the long service leave liability due to changes in the bond interest rates; and b.
transfer of amounts from the reserves to accumulated surplus or net result due to disposal or derecognition or reclassification.
(j) Financial instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Due to the nature of the Casterton Memorial Hospital’s activities, certain financial assets and financial liabilities arise under statute rather than a contract. Such financial assets and financial liabilities do not meet the definition of financial instruments in AASB 132 Financial
Instruments: Presentation. For example, statutory receivables arising from taxes, fines and penalties do not meet the definition of financial instruments as they do not arise under contract.
Where relevant, for note disclosure purposes, a distinction is made between those financial assets and financial liabilities that meet the definition of financial instruments in accordance with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Loans and receivables category includes cash and deposits (refer to Note 1(k)), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.
Held-to-maturity investments
If the Health Service has the positive intent and ability to hold nominated investments to maturity, then such financial assets may be classified as held-to-maturity. Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity
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Annual Report 2014 – 2015 financial assets are measured at amortised cost using the effective interest method, less any impairment losses.
The Health Service makes limited use of this classification because any sale or reclassification of more than an insignificant amount of held-to-maturity investments not close to their maturity, would result in the whole category being reclassified as available-for-sale. The Health Service would also be prevented from classifying investment securities as held-to-maturity for the current and the following two financial years.
The held-to-maturity category includes certain term deposits and debt securities for which the Health Service concerned intends to hold to maturity.
Available-for-sale financial assets
Available-for-sale financial instrument assets are those designated as available-for-sale or not classified in any other category of financial instrument asset. Such assets are initially recognised at fair value. Subsequent to initial recognition, gains and losses arising from changes in fair value are recognised in ‘other comprehensive income’ until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in net result for the period. Fair value is determined in the manner described in Note 18(e).
(k) Assets
Cash and Cash Equivalents
Cash and cash equivalents recognised on the balance sheet comprise cash on hand and cash at bank, deposits at call and highly liquid investments (with an original maturity of three months or less), which are held for the purpose of meeting short term cash commitments rather than for investment purposes, which are readily convertible to known amounts of cash with an insignificant risk of changes in value.
For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as liabilities on the balance sheet.
Receivables
Receivables consist of:
- contractual receivables, which includes mainly debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables; and
- statutory receivables, which includes predominantly amounts owing from the Victorian Government and
Goods and Services Tax (“GST”) input tax credits recoverable.
Receivables that are contractual are classified as financial instruments and categorised as loans and receivables. Statutory receivables are recognised and measured similarly to contractual receivables (except for impairment), but are not classified as financial instruments because they do not arise from a contract.
Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less any accumulated impairment.
Trade debtors are carried at nominal amounts due and are due for settlement within 30 days from the date of recognition. Collectability of debts is reviewed on an ongoing basis, and debts which are known to be uncollectible are written off. A provision for doubtful debts is recognised when there is objective evidence that the debts may not be collected and bad debts are written off when identified.
Investments and other financial assets
Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.
Investments are classified in the following categories:
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 financial assets at fair value through profit or loss;
 held-to-maturity;
 loans and receivables; and
 available-for-sale financial assets.
The Casterton Memorial Hospital classifies its other financial assets between current and non-current assets based on the purpose for which the assets were acquired. Management determines the classification of its other financial assets at initial recognition.
Casterton Memorial Hospital assesses at each balance sheet date whether a financial asset or group of financial assets is impaired.
All financial assets, except those measured at fair value through profit or loss are subject to annual review for impairment.
Inventories
Inventories include goods and other property held either for sale, consumption or for distribution at no or nominal cost in the ordinary course of business operations. It excludes depreciable assets.
Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value.
Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.
The bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.
Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis
Cost for all other inventory is measured on the basis of weighted average cost.
Property, plant and equipment
All non-current physical assets are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of acquisition. Assets transferred as part of a merger/machinery of government are transferred at their carrying amount.
More details about the valuation techniques and inputs used in determining the fair value of non-financial physical assets are discussed in Note 9 Property, plant and equipment.
The initial cost for non-financial physical assets under finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.
Crown land is measured at fair value with regard to the property’s highest and best use after due consideration is made for any legal or physical restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset(s) are not taken into account until it is virtually certain that any restrictions will no longer apply.
Therefore, unless otherwise disclosed, the current use of these non-financial physical assets will be their highest and best uses.
Land and buildings are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment.
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Plant, equipment and vehicles are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment. Depreciated historical cost is generally a reasonable proxy for fair value because of the short lives of the assets concerned.
Leasehold improvements
The cost of a leasehold improvement is capitalised as an asset and depreciated over the shorter of the remaining term of the lease or the estimated useful life of the improvements.
Revaluations of non-current physical assets
Non-current physical assets are measured at fair value and are revalued in accordance with FRD 103F Non-
current physical assets. This revaluation process normally occurs at least every five years, based upon the asset’s Government Purpose Classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are used to conduct these scheduled revaluations and any interim revaluations are determined in accordance with the requirements of the FRDs. Revaluation increments or decrements arise from differences between an asset’s carrying value and fair value.
Revaluation increments are recognised in ‘other comprehensive income’ and are credited directly in equity to the asset revaluation surplus, except that, to the extent that an increment reverses a revaluation decrement in respect of that same class of asset previously recognised as an expense in net result, the increment is recognised as income in the net result.
Revaluation decrements are recognised in ‘other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment.
Revaluation increases and revaluation decreases relating to individual assets within an asset class are offset against one another within that class but are not offset in respect of assets in different classes.
Revaluation surplus is not normally transferred to accumulated funds on derecognition of the relevant asset.
In accordance with FRD 103F, Casterton Memorial Hospital non-current physical assets were assessed to determine whether revaluation of the non-current physical assets was required.
Investment properties
Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the health services.
Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Health Service.
Subsequent to initial recognition at cost, investment properties are revalued to fair value, determined annually by independent valuers. Fair values are determined based on a market comparable approach that reflects recent transaction prices for similar properties. Investment properties are neither depreciated nor tested for impairment.
Rental revenue from leasing of investment properties is recognised in the comprehensive operating statement in the periods in which it is receivable on a straight line basis over the lease term.
Prepayments
Other non-financial assets include prepayments which represent payments in advance of receipt of goods or services or that part of expenditure made in one accounting period covering a term extending beyond that period.
Disposal of non-financial assets
Any gain or loss on the sale of non-financial assets is recognised in the comprehensive operating statement.
Refer to note 1(i) – ‘comprehensive income’.
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Impairment of non-financial assets
Goodwill and intangible assets with indefinite lives (and intangible assets not yet available for use) are tested annually for impairment (as described below) and whenever there is an indication that the asset may be impaired.
All other non-financial assets are assessed annually for indications of impairment, except for:
 inventories;
 investment properties that are measured at fair value;
 non-current physical assets held for sale; and
 assets arising from construction contracts.
Investments accounted for using the equity method
An associate is an entity over which Casterton Memorial Hospital exercises significant influence, but not control.
The investment in the associate is accounted for using the equity method of accounting. Under the equity method for accounting, the investment in the associate is recognised at cost on initial recognition, and the carrying amount is increased or decreased in subsequent years to recognise Casterton Memorial Hospital’s share of the profits or losses of the associates after the date of acquisition. Casterton Memorial Hospital’s share of the associate’s profit or loss is recognised in Casterton Memorial Hospital’s net result as ‘other economic flows’. The share of post-acquisition changes in revaluation surpluses and any other reserves, are recognised in both the comprehensive operating statement and the statement of changes in equity. The cumulative post acquisition movements are adjusted against the carrying amount of the investment, including dividends received or receivable from the associate.
Investments in joint operations
In respect of any interest in joint operations, Casterton Memorial Hospital recognises in the financial statements:
 its assets, including its share of any assets held jointly;
 any liabilities including its share of liabilities that it had incurred;
 its revenue from the sale of its share of the output from the joint operation;
 its share of the revenue from the sale of the output by the operation; and
 its expenses, including its share of any expenses incurred jointly.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
 the rights to receive cash flows from the asset have expired; or
 the Health Service retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or
 the Health Service has transferred its rights to receive cash flows from the asset and either:
(a) has transferred substantially all the risks and rewards of the asset; or
(b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where the Health Service has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Health Service’s continuing involvement in the asset.
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Impairment of financial assets
At the end of each reporting period Casterton Memorial Hospital assesses whether there is objective evidence that a financial asset or group of financial asset is impaired. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.
Receivables are assessed for bad and doubtful debts on a regular basis. Bad debts considered as written off and allowances for doubtful receivables are expensed. Bad debt written off by mutual consent and the allowance for doubtful debts are classified as ‘other comprehensive income’ in the net result.
The amount of the allowance is the difference between the financial asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate.
Where the fair value of an investment in an equity instrument at balance date has reduced by 20 percent or more than its cost price or where its fair value has been less than its cost price for a period of 12 or more months, the financial asset is treated as impaired.
In order to determine an appropriate fair value as at 30 June 2015 for its portfolio of financial assets, Casterton
Memorial Hospital obtained a valuation based on the best available advice using an estimated [insert
appropriate valuation method] through a reputable financial institution. This value was compared against valuation methodologies provided by the issuer as at 30 June 2015. These methodologies were critiqued and considered to be consistent with standard market valuation techniques.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.
Net gain/(loss) on financial instruments
Net gain/(loss) on financial instruments includes:
- realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading;
- impairment and reversal of impairment for financial instruments at amortised cost; and
- disposals of financial assets and derecognition of financial liabilities.
Revaluations of financial instruments at fair value
The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets.
(l) Liabilities
Payables
Payables consist of:
 contractual payables which consist predominantly of accounts payable representing liabilities for goods and services provided to the Health Service prior to the end of the financial year that are unpaid, and arise when the Health Service becomes obliged to make future payments in respect of the purchase of those goods and services. The normal credit terms for accounts payable are usually Nett
30 days.
 statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and are initially recognised at fair value, and then subsequently carried at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.
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Provisions
Provisions are recognised when the Health Service has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a liability is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows, using a discount rate that reflects the time value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be received from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably.
Employee benefits
This provision arises for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.
Wages and salaries, annual leave, and accrued days off
Liabilities for wages and salaries, including non-monetary benefits and annual leave, are all recognised in the provision for employee benefits as ‘current liabilities’, because the health service does not have an unconditional right to defer settlements of these liabilities.
Depending on the expectation of the timing of settlement, liabilities for wages and salaries and annual leave are measured at:

Undiscounted value – if the health service expects to wholly settle within 12 months; or

Present value – if the health service does not expect to wholly settle within 12 months.
Long service leave (LSL)
Liability for LSL is recognised in the provision for employee benefits.
Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the health service does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months.
The components of this current LSL liability are measured at:

Undiscounted value – if the health service expects to wholly settle within 12 months; and

Present value – if the health service does not expect to wholly settle within 12 months.
Conditional LSL is disclosed as a non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value.
Any gain or loss followed revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest rates for which it is then recognised as an other economic flow.
Termination benefits
Termination benefits are payable when employment is terminated before the normal retirement date or when an employee decides to accept an offer of benefits in exchange for the termination of employment.
The health service recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary
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Annual Report 2014 – 2015 redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.
Employee benefit on-costs
Employee benefit on-costs, such as payroll tax, workers compensation and superannuation are recognised together with provisions for employee benefits.
Superannuation liabilities
The Casterton Memorial Hospital does not recognise any unfunded defined benefit liability in respect of the superannuation plans because the Health Service has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised as an expense in the consolidated comprehensive operating statement.
(m) Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership.
Leases of property, plant and equipment are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
For service concession arrangements, the commencement of the lease term is deemed to be the date the asset is commissioned.
All other leases are classified as operating leases.
Operating leases
Entity as lessor
Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.
All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the net consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timing of payments.
In the event that lease incentives are given to the lessee, the aggregate cost of incentives are recognised as a reduction of rental income over the lease term, on a straight-line basis unless another systematic basis is more appropriate of the time pattern over which the economic benefit of the leased asset is diminished.
Entity as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.
Casterton Memorial Hospital has previously recognised the leasing arrangements for local area network equipment, workstations and peripherals (purchased through group buying arrangements with SWARH) as
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Annual Report 2014 – 2015 operating leases. These are now correctly reported as finance leases. Finance leases are regarded as a financial accommodation and under the Section 30 of Health Services Act 1988, the Minister for Health and the
Treasurer must declare a registered funded agency to be an approved borrower for the purposes of this section. An approved borrower may, with the approval of the Minister and the Treasurer, obtain financial accommodation, whether within or outside Victoria, secured or arranged in a manner and for a period approved by the Treasurer. At this time Casterton Memorial Hospital has not been declared an approved borrower in relation to these finance leases. The Department has advised they will ensure that Casterton
Memorial Hospital complies with Section 30 of Health Services Act 1988 on or before 30 June 2016.
(n) Equity
Contributed capital
Consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly-Owned
Public Sector Entities and FRD 119A Contributions by Owners, appropriations for additions to the net asset base have been designated as contributed capital. Other transfers that are in the nature of contributions to or distributions by owners that have been designated as contributed capital are also treated as contributed capital.
Transfers of net assets arising from administrative restructurings are treated as contributions by owners.
Transfers of net liabilities arising from administrative restructures are to go through the comprehensive operating statement.
Property, plant & equipment revaluation surplus
The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current physical assets.
(o) Commitments
Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of a note (refer to note 19) at their nominal value and are inclusive of the
GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised on the balance sheet
(p) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Contingent assets and contingent liabilities are presented inclusive of GST receivable or payable respectively.
(q) Goods and Services Tax (“GST”)
Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, the GST payable is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of
GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as an operating cash flow.
Commitments for expenditure and contingent assets and liabilities are presented on a gross basis.
41

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
(r) AASs issued that are not yet effective
Certain new Australian accounting standards have been published that are not mandatory for the 30 June 2015 reporting period. DTF assesses the impact of all these new standards and advises the Health Service of their applicability and early adoption where applicable.
As at 30 June 2015, the following standards and interpretations had been issued by the AASB but were not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as detailed in the table below. Casterton Memorial Hospital has not and does not intend to adopt these standards early.
Standard/Interpretation Summary Applicable for annual reporting periods beginning on
Impact on public sector entity financial statements
AASB 9 Financial
Instruments
The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.
1 Jan 2018 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income
(OCI) and no longer recycled to the profit and loss.
While the preliminary assessment has not identified any material impact arising from AASB
9, it will continue to be monitored and assessed.
AASB 2014-4 Amendments to Australian Accounting
Standards – Clarification of
Acceptable Methods of
Depreciation and
Amortisation
[AASB 116 & AASB 138]
Amends AASB 116 Property, Plant and
Equipment and AASB 138 Intangible
Assets to: establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset; prohibit the use of revenue-based methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset.
1 Jan 2016 The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation.
AASB 2014-9 Amendments to Australian Accounting
Standards – Equity Method in Separate Financial
Statements
Amends AASB 127 Separate Financial
Statements to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their
42
1 Jan 2016 The assessment indicates that there is no expected impact as the entity will continue to account for the investments in

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Standard/Interpretation Summary Applicable for annual reporting periods beginning on
Impact on public sector entity financial statements
[AASB 1, 127 & 128]
AASB 2015-6 Amendments to Australian Accounting
Standards – Extending
Related Party Disclosures to Not-for-Profit Public
Sector Entities
[AASB 10, AASB 124 &
AASB 1049] separate financial statements.
The Amendments extend the scope of
AASB 124 Related Party Disclosures to not-for-profit public sector entities. A guidance has been included to assist the application of the Standard by notfor-profit public sector entities. subsidiaries, joint ventures and associates using the cost method as mandated if separate financial statements are presented in accordance with FRD
113A.
AASB 2014-10
Amendments to Australian
Accounting Standards –
Sale or Contribution of
Assets between an Investor and its Associate or Joint
Venture [AASB 10 & AASB
128]
AASB 2014-10 amends AASB 10
Consolidated Financial Statements and
AASB 128 Investments in Associates to ensure consistent treatment in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require that:
1 Jan 2016 The assessment has indicated that there is limited impact, as the revisions to AASB 10 and
AASB 128 are guidance in nature. a full gain or loss to be recognised by the investor when a transaction involves a business (whether it is housed in a subsidiary or not); and
 a partial gain or loss to be recognised by the parent when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.
1 Jan 2016 The amending standard will result in extended disclosures on the entity's key management personnel (KMP), and the related party transactions.
In addition to the new standards and amendments above, the AASB has issued a list of other amending standards that are not effective for the 2014-15 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010).

AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and
Financial Instruments

AASB 2014-1 Amendments to Australian Accounting Standards [PART D – Consequential Amendments arising from AASB 14 Regulatory Deferral Accounts only] #

AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in
Joint Operations [AASB 1 & AASB 11]

AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15

AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants [AASB 101,
AASB 116, AASB 117, AASB 123, AASB 136, AASB 140 & AASB 141]

AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)
43

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015

AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) –
Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)]

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to
AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]

AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031
Materiality

AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for
Australian Groups with a Foreign Parent [AASB 127, AASB 128] #

AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the
Consolidation Exception [AASB 10, AASB 12, AASB 128] #
(s) Category groups
The Casterton Memorial Hospital has used the following category groups for reporting purposes for the current and previous financial years.
Admitted Patient Services (Admitted Patients) comprises all acute and subacute admitted patient services, where services are delivered in public hospitals.
Aged Care comprises a range of in home, specialist geriatric, residential care and community based programs and support services, such as Home and Community Care (HACC) that are targeted to older people, people with a disability, and their carers.
Primary, Community and Dental Health comprises a range of home based, community based, community, primary health and dental services including health promotion and counselling, physiotherapy, speech therapy, podiatry and occupational therapy and a range of dental health services
Residential Aged Care including Mental Health (RAC incl. Mental Health) referred to in the past as psychogeriatric residential services, comprises those Commonwealth-licensed residential aged care services in receipt of supplementary funding from the department under the mental health program. It excludes all other residential services funded under the mental health program, such as mental health funded community care units and secure extended care units.
Other Services not reported elsewhere - (Other) comprises services not separately classified above, including:
Public Health Services including laboratory testing, blood borne viruses / sexually transmitted infections clinical services, Kooris liaison officers, immunisation and screening services, drugs services including drug withdrawal, counselling and the needle and syringe program, Disability services including aids and equipment and flexible support packages to people with a disability, Community Care programs including sexual assault support, early parenting services, parenting assessment and skills development, and various support services. Health and
Community Initiatives also falls in this category group.
44

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Note 2: Analysis of Revenue by Source
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Government Grants
Indirect contributions by Department of
Health and Human Services
Patient & Resident Fees
Commercial Activities
Other Revenue from Operating Activities
Total Revenue from Operating Activities
Admitted
Patients
2015
$
RAC
2015
$
Primary
Health
2015
$
Other
2015
$
Total
2015
$
3,480,165 2,658,013 364,195 -
17,276
157,811
-
436,448
4,091,700
13,953
582,581
-
350,518
3,605,065
1,993
55,752
-
50,074
472,014
-
-
223,578
-
223,578
6,502,373
33,222
796,144
223,578
837,040
8,392,357
Interest
Total Revenue from Non-Operating
Activities
Capital Purpose Income
Total Capital Purpose Income
22,778 18,222 2,733 47,377 91,110
22,778
28,700
28,700
18,222 2,733 47,377
388,033
388,033
-
-
33,371
33,371
91,110
450,104
450,104
Total Revenue 4,143,178 4,011,320 474,747 304,326 8,933,571
Government Grants
Indirect contributions by Department of
Health and Human Services
Patient & Resident Fees
Commercial Activities
Other Revenue from Operating Activities
Total Revenue from Operating Activities
Interest
Total Revenue from Non-Operating
Activities
Capital Purpose Income
Total Capital Purpose Income
Total Revenue
Admitted
Patients
2014
$
RAC
2014
$
Primary
Health
2014
$
Other
2014
$
Total
2014
$
3,399,831 2,603,927 374,092 -
12,801
143,190
-
625,128
4,180,950
10,340
560,888
-
504,910
3,680,065
1,477
66,560
-
72,130
514,259
-
-
205,038
-
205,038
6,377,850
24,618
770,638
205,038
1,202,168
8,580,312
24,331 19,465 2,920 50,610
24,331 19,465 2,920 50,610
97,326
97,326
23,536
23,536
4,228,817
299,444
299,444
4,177
4,177
39,264
39,264
3,998,974 521,356 294,912
366,421
366,421
9,044,059
Indirect co ntributio ns by Department o f Health (1 July 2014 - 31 Dec 2014) / Department o f Health and Human Services (1 Jan 2015 - 30 June 2015)
Department o f Health / Department o f Health and Human Services makes certain payments o n behalf o f the Health Service (List). These amo unts have been bro ught to acco unt in determining the o perating result fo r the year by reco rding them as revenue and expenses.
45

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Note 3: Analysis of Expenses by Source
Employee Expenses
Non Salary Labour Costs
Supplies & Consumables
Other Expenses from Continuing Operations
Total Expenditure from Operating Activities
Admitted
Patients
2015
$
RAC
2015
$
2,220,630
233,756
229,186
758,125
3,262,549
44,609
185,112
612,332
3,441,697 4,104,602
Primary
Health
2015
$
629,309
54,522
26,445
87,476
797,752
Total
2015
$
6,112,488
332,887
440,743
1,457,933
8,344,051
Depreciation (refer note 4)
Finance Costs (Refer note 5)
Total Other Expenses
Total Expenses
572,931
5,233
578,164
4,019,861
462,753
4,227
466,980
4,571,582
66,108
604
66,712
864,464
1,101,792
10,064
1,111,856
9,455,907
Admitted
Patients
2014
$
RAC
2014
$
Employee Expenses
Non Salary Labour Costs
Supplies & Consumables
Other Expenses from Continuing Operations
Total Expenditure from Operating Activities
2,449,775
230,075
229,499
1,007,411
3,916,760
3,016,142
26,434
185,364
813,679
4,041,619
Depreciation (refer note 4)
Total Other Expenses
Total Expenses
446,743
446,743
4,363,503
360,830
360,830
4,402,449
Primary
Health
2014
$
Total
2014
$
517,404
39,965
26,481
116,240
700,090
5,983,321
296,474
441,344
1,937,330
8,658,469
51,547
51,547
751,637
859,120
859,120
9,517,589
46

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Note 3a: Analysis of Expenses and Revenue by Internally Managed and Restricted Specific Purpose Funds for Service Supported by
Hospital and Community Initiatives
Expense Revenue
Commercial Activities
Catering
Laundry
Property Income
Research
Property Maintenance
Total
Total
2015
$
Total
2014
$
72,685
523
1,238
6,380
17,290
98,116
70,568
497
1,202
9,287
16,951
98,505
Total
2015
$
104,282
2,006
49,799
6,380
61,111
223,578
Total
2014
$
92,533
2,215
48,934
9,287
52,069
205,038
Depreciation
Buildings
Plant & Equipment
Medical Equipment
Computers and Communication
Furniture and Fittings
Motor Vehicles
Landscaping and Paving
Leased Assets - South West Alliance of Rural Health
Total Depreciation
Total
2015
$
Total
2014
$
870,353
33,282
47,150
3,293
34,374
36,304
9,559
67,477
1,101,792
705,819
35,511
35,801
2,643
37,668
41,678
-
-
859,120
47

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Total
2015
$
Total
2014
$
Finance Charges on Financial Leases
Total Finance Costs
10,064
10,064
-
-
For the purposes of the cash flow statement, cash assets includes cash on hand and in banks, and short-term deposits which are readily convertible to cash on hand, and are subject to an insignificant risk of change in value, net of outstanding bank overdrafts.
Total
2015
$
400
4,241,778
4,242,178
Total
2014
$
400
2,660,212
2,660,612
Cash at Bank
Deposits at Call
TOTAL
Represented by:
Cash for Health Service Operations (as per Cash Flow Statement)
Cash for Monies Held in Trust
- Cash at Bank
TOTAL
2,852,793 2,660,612
1,389,385
4,242,178
-
2,660,612
48

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Total
2015
$
Total
2014
$
CURRENT
Contractual
Trade Debtors
Patient Fees
Joint Venture Debtor
Statutory
DoH Receivables
GST Receivable
TOTAL CURRENT RECEIVABLES
NON CURRENT
Statutory
Long Service Leave - Department of
Health
TOTAL NON-CURRENT RECEIVABLES
TOTAL RECEIVABLES
56,275
114,116
59,418
229,809
52,908
100,168
37,035
190,111
47,817
39,939
317,565
105,137
37,375
332,623
336,541
336,541
654,106
307,432
307,432
640,055
(a) Ageing analysis of receivables
Please refer to note 18b for the ageing analysis of contractual receivables
(b) Nature and extent of risk arising from receivables
Please refer to note 18b for the nature and extent of credit risk arising from contractual receivables
At Cost
Pharmaceuticals
Catering Supplies
Housekeeping Supplies
Medical and Surgical Lines
Engineering Stores
Administration Stores
Joint Venture Stores
TOTAL INVENTORIES
Total
2015
$
Total
2014
$
18,940
14,860
3,235
25,323
6,479
5,487
1,297
75,621
17,739
13,482
2,590
23,207
6,807
7,275
1,179
72,279
49

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(a) Gross carryting amount and accumulated depreciation
Total
2015
$
Total
2014
$
260,000
260,000
260,000
260,000
Land
Land at Fair Value
Total Land
Land Improvement
Land Improvements at Fair Value
Assets Under Construction
Less Acc'd Depreciation
Total Land Improvements
Buildings
Buildings at Fair Value
Less Acc'd Depreciation
Total Buildings
Plant and Equipment
Plant and Equipment at Fair Value
Less Acc'd Depreciation
Total Plant and Equipment
Medical Equipment
Medical Equipment at Fair Value
Less Acc'd Depreciation
Total Medical Equipment
Computers and Communication
Computers and Communication at Fair Value
Less Acc'd Depreciation
Total Computers and Communication
Furniture and Fittings
Furniture and Fittings at Fair Value
Less Acc'd Depreciation
Total Furniture and Fittings
Motor Vehicles
Motor Vehicles at Fair Value
Less Acc'd Depreciation
Total Motor Vehicles
Leased Assets
Computers and Communication
Less Acc'd Depreciation
Total Motor Vehicles
TOTAL
50
491,912
9,558
482,354
353,000
2,960
-
355,960
22,799,000
870,353
21,928,647
22,799,000
-
22,799,000
631,196
500,463
130,733
638,187
476,080
162,107
520,040
368,616
151,424
529,994
338,103
191,891
23,923
9,058
14,865
28,203
10,046
18,157
601,886
442,452
159,434
552,530
416,251
136,279
292,591
239,923
52,668
292,591
203,619
88,972
303,963
68,480
235,483
-
-
-
23,415,608 24,012,366

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(b) Reconciliations of the carrying amounts of each class of asset.
Balance at 1 July 2013
Additions / Transfers
Disposals
Revaluation
Depreciation (note 4)
Balance at 1 July 2014
Additions / Transfers
Disposals
Revaluation
Depreciation (note 4)
Balance at 30 June 2015
Land & Land
Improvements
$
235,000
332,960
-
48,000
-
615,960
135,953
-
-
(9,559)
742,354
Buildings
$
14,267,840
(371,190)
-
9,608,169
(705,819)
22,799,000
-
-
-
(870,353)
21,928,647
Plant &
Equipment
$
582,867
167,840
-
-
(153,301)
597,406
373,168
(4,087)
-
(221,880)
744,607
Total
$
15,085,707
129,610
-
9,656,169
(859,120)
24,012,366
509,121
(4,087)
-
(1,101,792)
23,415,608
Land and buildings carried at valuation
An independent valuation of the Health Service's land and buildings was performed by the
Valuer-General Victoria to determine the fair value of the land and buildings. The valuation, which conforms to Australian Valuation Standards, was determined by reference to the amounts for which assets could be exchanged between knowledgeable willing parties in an arm's length transaction. The valuation was based on independent assessments.
The effective date of the valuation is 30 June 2014
51

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(c) Fair value measurement hierarchy for assets as at 30 June 2015
Carrying
Amount as at
30 June 2015
Fair value measurement at end of reporting period using:
$
Land at Fair Value
Specialised land
Land Improvements
Total of Land at Fair Value
Buildings at Fair Value
Specialised Buildings
Assets Under Construction
260,000
482,354
742,354
Total Furniture and Fittings at Fair Value
Motor Vehicles at Fair Value
Motor Vehicles at Fair Value
Total Motor Vehicles at Fair Value
Leased Assets
Motor Vehicles at Fair Value
Total Leased Assets at Fair Value
21,928,647
-
21,928,647 Total of Building at Fair Value
Plant and Equipment at Fair Value
Plant, Equipment and Vehicles at fair value
Total Plant and Equipment at Fair Value
Medical Equipment at Fair Value
Medical Equipment at Fair Value
Total Medical Equipment at Fair Value
Computers and Communication at Fair Value
Computers and Communication at Fair Value
Total Computers and Communication at Fair
Value
Furniture and Fittings at Fair Value
Furniture and Fittings at Fair Value
130,733
130,733
151,424
151,424
14,865
14,865
159,434
159,434
52,668
52,668
235,483
235,483
Level 1* Level 2*
$ $
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Level 3
$
21,928,647
-
21,928,647
260,000
482,354
742,354
159,434
159,434
130,733
130,733
151,424
151,424
14,865
14,865
52,668
52,668
235,483
235,483
TOTAL 23,415,608 23,415,608
(i) Classified in acco rdance with the fair value hierarchy, see no te 1
(ii) Vehicles are catego rised to level 3 assets if the depreciated replacement co st is used in estimating the fair value.
There have been no transfers between levels during the perio d.
52

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(c) Fair value measurement hierarchy for assets as at 30 June 2014
Carrying
Amount as at
30 June 2014
$
Fair value measurement at end of reporting period using:
Level 1* Level 2*
$ $
Level 3
$
Land at Fair Value
Specialised land
Land Improvements
Total of Land at Fair Value
Buildings at Fair Value
Specialised Buildings
Assets Under Construction
Total of Building at Fair Value
Plant and Equipment at Fair Value
Plant, Equipment and Vehicles at fair value
Total Plant and Equipment at Fair Value
260,000
355,960
615,960
22,799,000
-
22,799,000
Motor Vehicles at Fair Value
Motor Vehicles at Fair Value
Total Motor Vehicles at Fair Value
162,107
162,107
Medical Equipment at Fair Value
Medical Equipment at Fair Value
Total Medical Equipment at Fair Value
Computers and Communication at Fair Value
Computers and Communication at Fair Value
191,891
191,891
Total Computers and Communication at Fair
Furniture and Fittings at Fair Value
Furniture and Fittings at Fair Value
Total Furniture and Fittings at Fair Value
18,157
18,157
136,279
136,279
88,972
88,972
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22,799,000
-
22,799,000
615,960
162,107
191,891
260,000
355,960
18,157
18,157
136,279
162,107
191,891
136,279
88,972
88,972
TOTAL 24,012,366 24,012,366
(i) Classified in acco rdance with the fair value hierarchy, see no te 1
(ii) Vehicles are catego rised to level 3 assets if the depreciated replacement co st is used in estimating the fair value.
There have been no transfers between levels during the perio d.
53

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Specialised land and specialised buildings
The market approach is also used for specialised land and specialised buildings although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the assets being valued. Specialised assets contain significant, unobservable adjustments; therefore these assets are classified as Level 3 under the market based direct comparison approach.
The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.
For Casterton Memorial Hospital, the depreciated replacement cost method is used for the majority of specialised buildings, adjusting for the associated depreciation. As depreciation adjustments are considered as significant and unobservable inputs in nature, specialised buildings are classified as
Level 3 for fair value measurements.
An independent valuation of the Health Service’s specialised land and specialised buildings was performed by the Valuer-General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 30 June 2014.
Vehicles
The Casterton Memorial Hospital acquires new vehicles and at times disposes of them before completion of their economic life. The process of acquisition, use and disposal in the market is managed by the Health Service who set relevant depreciation rates during use to reflect the consumption of the vehicles. As a result, the fair value of vehicles does not differ materially from the carrying value (depreciated cost).
Plant and equipment
Plant and equipment is held at carrying value (depreciated cost). When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, the depreciated replacement cost is used to estimate the fair value. Unless there is market evidence that current replacement costs are significantly different from the original acquisition cost, it is considered unlikely that depreciated replacement cost will be materially different from the existing carrying value.
There were no changes in valuation techniques throughout the period to 30 June 2014.
For all assets measured at fair value, the current use is considered the highest and best use.
54

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
55

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(e) Description of significant unobservable inputs to Level 3 valuations:
Specialised land
Specialised buildings
Valuation technique (i)
Market approach
Significant unobservable inputs (i)
Community Service Obligation
(CSO)adjustment
Depreciated replacement cost Direct cost per square metre
Useful life of specialised buildings
Plant and equipment at fair value
Depreciated replacement cost Cost per unit
Useful life of PPE
Vehicles Depreciated replacement cost Cost per unit
Medical equipment at fair value
Useful life of vehicles
Depreciated replacement cost Cost per unit
Useful life of medical equipment
56

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Note 10: Investments Accounted for using the Equity Method
Name of Entity
Jointly Controlled Entities
Principal Activity
Country of
Incorporation
Southern Grampians/Glenelg Shire PCP Primary Health Australia
Ownership Interest
2015
%
2014
%
13 13
Published Fair Value
2015
%
2014
%
13 13
Summarised Balance Sheet
Southern Grampians/Glenelg Shire PCP
Current Assets
Cash and Cash Equivalents
Total Current Assets
Current Liabilities
Other Liabilities
Staff Provisions
Total Current Liabilities
Net Assets
Share of Joint Venture's Net Assets
2015
$'000
592,456
592,456
258,925
119,531
378,456
214,000
27,820
2014
$'000
689,967
689,967
326,330
99,179
425,509
264,458
34,380
Summarised Operating Statement
Southern Grampians/Glenelg Shire PCP
Revenue
Grants
Other Revenue
Total Revenue
Expenses
Employee Expenses
Other
Total Expenses
Net Result
Share of Joint Venture Net Result
Movements in carrying amounts of interest in the Joint Venture
Southern Grampians/Glenelg Shire PCP
Carrying amount at the beginning of the year
Share of the joint venture net result after tax
Carrying amount at the end of the year
2015
$'000
2014
$'000
370,366
296,935
667,301
338,870
475,929
814,799
316,490
401,269
717,759
341,278
496,428
837,706
(50,458) (22,907)
(6,560) (2,978)
2015
$'000
2014
$'000
34,380
(6,560)
27,820
37,358
(2,978)
34,380
Dividends Received from Associates and Joint Ventures
During the 2015 financial year, the Casterton Memorial Hospital received dividends of $0 (2013/2014: $0) from its joint ventures.
57

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(a) Movements in carrying value for investment properties as at 30 June 2015
Balance at Beginning Period
Transfers from Land & Buildings
Balance at End of Period
Total
2015
$
50,000
-
50,000
Total
2014
$
-
50,000
50,000
(b) Fair value measurement hierarchy for investment properties as at 30 June 2015
Investment Properties
Carry amount as at 30 June
2015
Fair value measurement at end of reporting period using:
Level 1 ( ¹ ) Level 2 (
²
) Level 3 (
³)
50000
50000
50,000
50000
There have been no transfers between levels during the period. There were no changes in valuation techniques throughout the period to 30 June 2015
For investment properties measured at fair value, the current use of the asset is considered the highest and best use.
The fair value of the Health Service’s investment properties at 30 June 2015 have been arrived on the basis of an independent valuation carried out by VRC Property Pty Ltd, Certified Practising Valuers recognised by the Australian Property Institute and are the State Government's independent valuation agency. The
Valuation is in accordance with instructions from the Valuer-General Victoria and determined by reference to market evidence of transaction process for similar properties with no significant unobservable adjustments, in the same location and condition and subject to similar lease and other contracts.
Total
2015
$
Total
2014
$
CURRENT
Contractual
Trade Creditors
Accrued Expenses
Statutory
GST Payable
PAYG Withholding
TOTAL CURRENT
235,018
29,045
264,063
8,316
106,270
114,586
378,649
265,470
38,484
303,954
7,339
59,345
66,684
370,638
(a) Maturity analysis of payables
Please refer to Note 18(c) for the ageing analysis of contractual payables
(b) Nature and extent of risk arising from payables
Please refer to note 18(c) for the nature and extent of risks arising from contractual payables
58

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Note 13: Borrowings
Total
2015
$
Total
2014
$
CURRENT
Australian Dollar Borrowings
– Finance Lease Liability (i) (refer Note 18a)
Total Australian Dollars Borrowings
Total Current
NON CURRENT
Australian Dollar Borrowings
– Finance Lease Liability (refer Note 18a)
Total Australian Dollars Borrowings
Total Non-Current
Total Borrowings
68,480
68,480
68,480
-
-
-
167,003
167,003
-
-
167,003
235,483
-
-
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
Finance costs of the Health Service incurred during the year are accounted for as follows:
Amount of finance costs recognised as expenses 10,064
Amount of investment revenue earned on borrowed funds that has been deducted from the finance costs incurred Nil
(a) Maturity analysis of borrowings
Please refer to note 18(c) for the ageing analysis of borrowings.
(b) Nature and extent of risk arising from borrowings
Please refer to note 18(c) for the nature and extent of risks arising from borrowings.
(c) Defaults and breaches
During the current and prior year, there were no defaults and breaches of any of the borrowings.
Note 13.a: Borrowings
(a) Finance lease liabilities
Minimum future lease
(i) payments
2015 2014
Other finance lease liabilities payable (ii)
Not longer than one year
Longer than one year but not longer than five years
Longer than five years
Minimum future lease payments
Less future finance charges
Present value of minimum lease payments
68,480
167,003
235,483
24,855
210,628
-
-
-
-
-
Present value of minimum future lease payments
2015
68,480
167,003
235,483
24,855
210,628
2014
-
-
-
-
-
Included in the financial statements as:
Current borrowings lease liabilities
Non-current borrowing lease liablities
68,480
167,003
235,483
-
-
-
68,480
167,003
235,483
(i) Minimum future lease payments include the aggregate of all base payments and any guaranteed residual
(ii) Other finance lease liabilities include obligations that are recognised on the balance sheet; the
-
-
-
The weighted average interest rate implicit in leases is 4.97% (2014 - 5.68%)
59

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Total
2015
$
Total
2014
$
Current Provisions
Annual Leave (Note 14a)
- Unconditional and expected to be settled within 12 months
- Unconditional and expected to be settled after 12 months
Long Service Leave (Note 14a)
- Unconditional and expected to be settled within 12 months
- Unconditional and expected to be settled after 12 months
Accrued Days Off (Note 14a)
- Unconditional and expected to be settled within 12 months
Accrued Salaries and Wages
- Unconditional and expected to be settled within 12 months
Provisions related to Employee Benefit On-Costs
- Unconditional and expected to be settled within
12 months (nominal value)
- Unconditional and expected to be settled after
12 months (nominal value)
Total Current Provisions
Non-Current Provisions
Employee Benefits (Note 14a)
Provisions related to Employee Benefit On-Costs
Total Non-Current Provisions
Total Provisions
429,998
150,820
241,250
180,528
119,438
660,219
69,558
754,500
40,585 28,995
30,298 205,720
1,431,358 1,480,551
53,339 77,550
77,320 121,529
130,659
1,562,017
199,079
1,679,630
197,350
19,183
216,533
1,778,550
189,472
17,789
207,261
1,886,891
(a) Employee Benefits and Related On-Costs
Current Employee Benefits and related on-costs
Annual Leave Entitlements
Accrued Wages and Salaries
Accrued Days Off
Unconditional Long Service Leave Entitlements
Non-Current Employee Benefits and related oncosts
Conditional Long Service Leave Entitlements
Total Employee Benefits and Related On-Costs
629,659
30,298
40,585
861,475
604,494
205,720
28,995
840,421
216,533
1,778,550
207,261
1,886,891
(b) Movements in Long Service Leave
Balance at start of year
Provision made during the year
- Revaluations
- Expense recognising Employee Service
Settlement made during the year
Balance at end of year
Total
2015
$
Total
2014
$
1,047,682 968,230
27,889
122,531
(120,094)
1,078,008
2,063
146,947
(69,558)
1,047,682
60

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Total
2015
$
Total
2014
$
CURRENT
Monies Held in Trust
- Accommodation Bonds (Refundable Entrance Fees)
Total Current
Total Other Liabilities
1,389,385
1,389,385
-
-
1,389,385 -
Total Monies Held in Trust
Represented by the following assets:
Cash Assets (refer to Note 6)
TOTAL
1,389,385
1,389,385
-
-
Total
2015
$
Total
2014
$
(a) Reserves
Property, Plant & Equipment Revaluation Surplus
Balance at the beginning of the reporting period
(1)
Revaluation undertaken during the year
Balance at the end of the reporting period
Represented by:
- Land
- Buildings
19,796,870
-
19,796,870
10,140,701
9,656,169
19,796,870
Total Reserves
(b) Contributed Capital
Balance at the beginning of the reporting period
Balance at the end of the reporting period
(c) Accumulated Surpluses/(Deficits)
Balance at the beginning of the reporting period
Net Result for the Year
Transfers to and from Reserves
Balance at the end of the reporting period
(d) Total Equity at end of financial year
409,292
19,387,578
19,796,870
19,796,870
409,292
19,387,578
19,796,870
19,796,870
2,293,608
2,293,608
2,293,608
2,293,608
3,121,685
(528,897)
-
2,592,788
3,598,193
(476,508)
-
3,121,685
24,683,266 25,212,163
(1) The property, plant & equipment asset revaluation surplus arises on the revaluation of property, plant & equipment.
61

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Net Result for the Year
Depreciation
Net (Gain)/Loss from Sale of Plant and Equipment
Change in Operating Assets & Liabilities
(Increase)/Decrease in Receivables
(Increase)/Decrease in Inventories
Increase/(Decrease) in Payables
Increase/(Decrease) in Provisions
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
Total
2015
$
(528,897)
Total
2014
$
(476,508)
1,101,792
4,087
859,120
5,164
(14,051)
(3,341)
243,494
(108,342)
(87,999)
(4,370)
(160,909)
96,936
694,742 231,434
(a) Financial Risk Management Objectives and Policies
Casterton Memorial Hospitals principal financial instruments comprise of:
- Cash Assets
- Term Deposits
- Receivables (excluding statutory receivables)
- Payables (excluding statutory payables)
- Accommodation Bonds
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, with respect to each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage Casterton
Memorial Hospital's financial risks within the government policy parameters.
Categorisation of Financial Instruments
Carrying
Amount
2015
$
Carrying
Amount
2014
$
Financial Assets
Cash and cash equivalents
Receivables
Total Financial Assets (i)
Financial Liabilities
At Amortised Cost
Borrowings
Total Financial Liabilities (ii)
4,242,178
229,809
4,471,987
264,063
235,483
499,546
2,660,612
2,850,723
190,111
303,954
-
303,954
(i) The total amount of financial assets disclosed here excludes statutory receivables
(i.e. GST input tax credit recoverable)
62
(ii) The total amount of financial liabilities disclosed here excludes statutory payables (i.e. Taxes payable)

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Net holding gain/(loss) on financial instruments by category
Net holding gain/(loss)
2015
$
Financial Assets
Cash & Cash Equivalent
Total Financial Assets
91,110
91,110
Net holding gain/(loss)
2014
$
97,326
97,326
(i) For cash and cash equivalents, loans or receivables and available-for-sale financial assets, the net gain or loss is calculated by taking the movement in the fair value of the asset, interest revenue or losses arising from revaluation of the financial assets, and minus any impairment recognised in the net result;
(b) Credit Risk
Credit risk arises from the contractual financial assets of Casterton Memorial Hospital, which comprise cash and deposits, non-statutory receivables and available for sale contractual financial assets.
Casterton Memorial Hospital's exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the Hospital. Credit risk is measured at fair value and is monitored on a regular basis.
Credit risk associated with Casterton Memorial Hospital’s contractual financial assets is minimal because the main debtor is the Victorian Government. For debtors other than the Government, it is the
Hospital’s policy to only deal with entities with high credit ratings of a minimum Triple-B rating and to obtain sufficient collateral or credit enhancements, where appropriate.
In addition, the Casterton Memorial Hospital does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. As with the policy for debtors, the Hospital’s policy is to only deal with banks with high credit ratings.
Provision of impairment for contractual financial assets is recognised when there is objective evidence that Casterton Memorial Hospital will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings.
Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents Casterton Memorial
Hospital’s maximum exposure to credit risk without taking account of the value of any collateral obtained.
63

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(b) Credit Risk (Continued)
Credit quality of contractual financial assets that are neither past due nor impaired
Other Total Financial institutions
(min BB credit rating)
$ $ $ 2015
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Joint Venture Debtor
- Other Receivables (i)
Total Financial Assets
4,242,178
-
4,242,178
-
-
56,275
59,418
451,160
566,853
4,242,178
56,275
59,418
451,160
4,809,031
2014
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Joint Venture Debtor
- Other Receivables
Total Financial Assets
2,750,308
-
2,750,308
-
-
42,609
47,334
442,750
532,693
2,750,308
42,609
47,334
442,750
3,283,001
(i) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian
Government and GST input tax credit recoverable).
Ageing analysis of Financial Asset as at 30 June
Total
Carrying
Amount
$
Not Past Due and Not
Impaired
$
Past Due But Not Impaired
Less than 1
Month
1-3 Months 3 months - 1
Year
$ $ $ 2015
Financial Assets
Cash and Cash Equivalents
Receivables (i)
- Trade Debtors
- Joint Venture Debtors
- Other Receivables
Total Financial Assets
4,242,178
56,275
59,418
451,160
4,809,031
4,242,178
16,336
-
89,577
4,348,091
-
-
4,654
4,654
-
-
19,894
19,894
-
39,939
59,418
337,035
436,392
2014
Financial Assets
Cash and Cash Equivalents
Receivables (i)
- Trade Debtors
- Joint Venture Debtors
- Other Receivables
Total Financial Assets
2,750,308 2,750,308 -
42,609
47,334
442,750
3,283,001
19,103
73,588
2,842,999
-
20,443
20,443
6,138
6,138
34,420
47,334
105,136
186,890
There are no material financial assets which are individually determined to be impaired. Currently
Casterton Memorial Hospital does not hold any collateral as security nor credit enhancements relating to any of its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The ageing analysis table above discloses the ageing only of contractual financial assets that are past due but not impaired.
64

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(c) Liquidity Risk
Liquidity risk is the risk that the Hospital would be unable to meet its financial obligations as and when they fall due.
Casterton Memorial Hospital's maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of the balance sheet. The Hospital manages its liquidity risk as follows:
Trade creditors are paid in accordance with their trading terms. Accommodation bonds are refunded when the resident departs the aged care facility. Sufficient cash reserves are held to ensure these commitments are met when due
The following table discloses the contractual maturity analysis for Casterton Memorial Hospital's financial liabilities. For interest rates applicable to each class of liability refer to individual notes to the financial statements.
Maturity analysis of Financial Liabilities as at 30 June
Carrying
Amount
$
Contractual
Cash Flows
$
Less than 1
Month
$
Maturity Dates
1-3
Months
3 months -
1 Year
$ $
1-5 Years
$ 2015
Financial Liabilities
Payables
Borrowings
Total Financial Liabilities
264,063
235,483
499,546
264,063
235,483
499,546
264,063
-
264,063
-
-
-
-
-
-
-
235,183
235,183
2014
Financial Liabilities
Payables
Total Financial Liabilities
303,954
303,954
303,954
303,954
303,954
303,954
-
-
-
-
-
-
(i) Ageing analysis of financial liabilities excludes the types of statutory financial liabilities (i.e. GST payable)
(d) Market Risk
The Casterton Memorial Hospital's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below.
Currency Risk
The Casterton Memorial Hospital is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement.
65

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Interest Rate Risk
Exposure to interest rate risk is insignificant. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial assets,
Casterton Memorial Hospital holds financial assets with relatively even maturity profiles. The
Hospital mainly undertakes financial liabilities with relatively even maturity profiles.
Other Price Risk
The Hospital is exposed to normal price fluctuations from time to time through market forces.
Where adequate notice is provided by suppliers, additional purchases are made for long term goods. Supplier contracts are also in place for major product lines purchased by the Hospital on a monthly basis. These contracts have set price arrangements and are reviewed on a regular basis.
Interest Rate Exposure of Financial Assets and Liabilities as at 30 June
Weighted Carrying Interest Rate Exposure
Average
Effective
Amount Fixed
Interest
Variable
Interest
Non-
Interest
Interest
Rate Rate Bearing
2015
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Joint Venture Debtors
- Other Receivables
Rate (%)
2.30
0
0
0
$
4,242,178
56,275
59,418
451,160
4,809,031
$
-
-
-
-
-
$
4,242,178
-
-
-
4,242,178
$
-
56,275
59,418
451,160
566,853
Financial Liabilities
Payables
Borrowings
0 264,063
235,483
499,546
-
235,483
235,483
-
-
-
264,063
-
264,063
2014
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Joint Venture Debtors
- Other Receivables
3.20
0
-
0
2,750,308
42,609
47,334
442,750
3,283,001
-
-
-
-
-
2,750,308
-
-
-
2,750,308
-
42,609
47,334
442,750
532,693
Financial Liabilities
Payables 0 303,954
303,954 -
-
-
303,954
303,954
66

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(d) Market Risk (continued)
Sensitivity Disclosure Analysis
Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Casterton Memorial Hospital believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia)
- A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 6%;
- A parallel shift of +1% and -1% in inflation rate from year-end rates of 2%
The following table discloses the impact on net operating result and equity for each category of financial instrument held by Casterton Memorial Hospital at year end as presented to key management personnel, if changes in the relevant risk occur.
2015
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Joint Venture Debtors
- Other Receivables
Financial Liabilities
Payables
Borrowings
2014
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Other Receivables
Financial Liabilities
Payables
Carrying
Amount
$
Profit
Interest Rate Risk
-1% +1%
Equity Profit Equity
$ $ $ $
4,242,178 (42,422) (42,422) 42,422 42,422
56,275
59,418
451,160
-
-
-
-
-
-
-
-
-
-
-
-
264,063
235,483
-
-
(42,422)
-
-
(42,422)
-
-
42,422
-
-
42,422
2,750,308 (27,503) (27,503) 27,503 27,503
42,609
442,750
-
-
-
-
-
-
-
-
303,954 -
(27,503)
-
(27,503)
-
27,503
-
27,503
67

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
(e) Fair Value
The fair values and net fair values of financial instrument assets and liabilities are determined as follows:
• Level 1 - the fair value of financial instrument with standard terms and conditions and traded in active liquid markets are determined with reference to quoted market prices;
• Level 2 - the fair value is determined using inputs other than quoted prices that are observable for the financial asset or liability, either directly or indirectly; and
• Level 3 - the fair value is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using unobservable market inputs.
Casterton Memorial Hospital considers that the carrying amount of financial instrument assets and liabilities recorded in the financial statements to be a fair approximation of their fair values, because of the short-term nature of the financial instruments and the expectation that they will be paid in full.
The following table shows that the fair values of most of the contractual financial assets and liabilities are the same as the carrying amounts.
Comparison between carrying amount and fair value
Total
Carrying
Amount
Fair value
2015
$
2015
$
Financial Assets
Cash and Cash Equivalents
Receivables
- Trade Debtors
- Joint Venture Debtors
- Other Receivables
Total Financial Assets
Total
Carrying
Amount
2014
$
Fair value
2014
$
4,242,178 4,242,178 2,750,308 2,750,308
56,275
59,418
451,160
4,809,031
56,275
59,418
451,160
4,809,031
42,609
-
442,750
3,235,667
42,609
-
442,750
3,235,667
Financial Liabilities
Payables
Borrowings
Total Financial Liabilities
264,063
235,483
499,546
264,063
235,483
499,546
303,954
-
303,954
303,954
-
303,954
68

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Final payment due on car park redevelopment
Total
2015
$
13,091
Total
2014
$
-
Lease commitments
Commitments in relation to leases contracted for at the reporting date:
Operating Leases
Total lease commitments
Operating Leases
Non-cancellable
Not later than one year
Later than 1 year and not later than 5 years
Sub Total
TOTAL
Total Commitments for Expenditure (inclusive of
GST) less GST recoverable from the Australian Tax Office
Total Commitments for Expenditure (exclusive of
GST)
21,840
21,840
37,784
37,784
11,636
10,203
21,839
21,839
18,227
19,557
37,784
37,784
21,839
(1,985)
37,784
(3,435)
19,854 34,349
Commitments in relation to leases contracted for at the reporting date:
Finance Leases (South West Alliance of Rural Health)
Total Lease Commitments
Commitments in relation to finance leases are payable as follows:
Current
Non-Current
Minimum Lease Payments
Less future finance charges
Total Lease Commitments
69
2015
$
2014
$
235,483
235,483
-
-
83,455
212,880
296,335
-
-
-
60,582
235,753
-
-

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
There are no known contingent assets or liabilities (2014 nil).
The amount paid or due and payable to the Auditor - General for auditing the financial statements of Casterton Memorial Hospital pursuant to the Audit Act 1994
Victorian Auditor-General's Office
RSM Bird Cameron - Internal Audit
Coffey Hunt Chartered Accountants
- Annual Prudential Compliance Statement (APCS)
2015
$
9,200
13,100
-
22,300
Casterton Memorial Hospital have made no ex gratia payments during the 2014/15 year.
(2014 nil)
70
2014
$
9,000
-
340
9,340

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
71

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Name of Entity Principal Activity
Ownership Interest
2015
%
2014
%
3.64
3.64
South West Alliance of Rural Health Information Systems
Casterton Memorial Hospital's interest in assets employed in the above jointly controlled operations and assets is detailed below. The amounts are included in the financial statements under their respective asset categories:
2015
$
2014
$
Current Assets
Cash and Cash Equivalents
Other Current Assets
Total Current Assets
Non Current Assets
Property, Plant and Equipment
Total Non Current Assets
Total Assets
Current Liabilities
Payables
Employee Benefits
Borrowings
Total Current Liabilities
73,507
71,014
144,521
244,430
244,430
388,951
66,872
48,513
115,385
10,626
10,626
126,011
60,714
59,108
68,480
188,302
44,405
51,373
-
95,778
Non Current Liabilities
Employee Benefits
Borrowings
Total Non Current Liabilities
Total Liabilities
14,653
167,003
181,656
369,958
Casterton Memorial Hospital's interest in revenues and expenses resulting from jointly controlled operations and assets is detailed below:
11,587
-
11,587
107,365
2015
$
2014
$
Revenues
Other
Total Revenue
Expenses
Information Technology and Administrative Expenses
Total Expenses
Net result
72
750,632
750,632
1,135,716
1,135,716
748,606
748,606
2,026
1,133,422
1,133,422
2,294

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial
Management Act 1994 , the following disclosures are made regarding responsible persons for the reporting period.
Period
Responsible Ministers:
The Honourable David Davis, MLC, Minister for Health and Ageing
The Honourable Jill Hennessy, MLA, Minister for Health, Minister for
01/07/2014 - 03/12/2014
04/12/2014 - 30/06/2015
04/12/2014 - 30/06/2015
Governing Boards
Mr T Baker
Dr T Halloran
Mr P Green
Mr G Sheppard
Mr G Cain
Mr R Dalby
Fr A Hayes
Mrs Karen Black
Mr Gerald Smith
Accountable Officers
Mr O Stephens
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 28/08/2014
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
01/07/2014 - 30/06/2015
Remuneration of Responsible Persons
The number of Responsible Persons are shown in their relevant income bands;
Income Band
$0 - $9,999
$190,000 - $200,000
Total Numbers
Total remuneration received or due and receivable by Responsible
Persons from the reporting entity amounted to:
Amounts relating to Responsible Ministers are reported in the financial statements of the Department of Premier and Cabinet
Remuneration
2015 2014
No.
No.
9 9
1 1
10 10
$197,352 $191,292
Executive Officers' Remuneration
The numbers of executive officers, other than Ministers and Accountable Officers, and their total remuneration during the reporting period are shown in the first two columns in the table below their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments,
$120,000 - $129,000
$130,000 - $139,000
Total annualised employee equivalents (AEE
)
(i)
Total Remuneration
2015
No.
2014
No.
-
1
1
-
1
1
Base Remuneration
2015
No.
2014
No.
-
1
1
1
-
1
Total Remuneration 135,087 127,109 135,087 127,109
(i) Annualised employee equivalent is based on paid working hours of 38 ordinary hours per week over 52 weeks for a reporting period
Casterton Memorial Hospital has made no payments to other personnel or contractors with significant management responsibilities during the 2014/15 year. (2014 nil).
73

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Notes To and Forming Part of the Financial Statements
Casterton Memorial Hospital Annual Report 2014/2015
Note 27 Events Occurring after the Balance Sheet Date
There have been no events subsequent to the reporting date which require further disclosure. (2014 nil)
Note 28: Superannuation
Employees of the Health Service are entitled to receive superannuation benefits and the Health
Service contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.
The Health Service does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees: its only obligation is to pay superannuation contributions as they fall due. The
Department of Treasury and Finance discloses the State's defined benefits liabilities in its disclosure for administered items.
However superannuation contributions paid or payable for the reporting period are included as part of the employees benefits in the comprehensive operating statement of the Health Service. The name, details, and amounts expense in relation to the major employee superannuation funds and contributions made by the Health Services are as follows:
(i) Defined benefit plans:
First State Super (Health Super)
Defined Contribution plans:
First State Super (Health Super)
HESTA
Total
Paid contribution for the Year
2015
$
Paid contribution for the Year
2014
$
Contribution outstanding at Year End
2015
$
Contribution outstanding at Year End
2014
$
32,715 30,531 -
444,380
56,749
533,844
424,926
39,389
494,846
-
-
-
-
-
-
(i) The basis for determining the level of contributions is determined by the various actuaries of the defined benefit superannuation plans.
74

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
The annual report of the Casterton Memorial Hospital is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.
Page Reference Legislation Requirement
Ministerial Directions
Report of Operations
Charter and purpose
FRD 22F
FRD 22F
Manner of establishment and the relevant Ministers
Purpose, functions, powers and duties
FRD 22F
FRD 22F
Initiatives and key achievements
Nature and range of services provided
Management and structure
FRD 22F Organisational structure
1-3
Inside front cover
3 & 11
Inside back cover
Financial and other information
FRD 10
FRD 11A
FRD 12A
FRD 21B
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 22F
Disclosure index
Disclosure of ex-gratia expenses
Disclosure of major contracts
Responsible person and executive officer disclosures
Application and operation of Protected Disclosure 2012
Application and operation of Carers Recognition Act 2012
Application and operation of Freedom of Information Act 1982
Compliance with building and maintenance provisions of Building Act 1993
Details of consultancies over $10,000
Details of consultancies under $10,000
Employment and conduct principles
Major changes or factors affecting performance
Occupational health and safety
FRD 22F
FRD 24C
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 22F
FRD 25B
Operational and budgetary objectives and performance against objectives
Reporting of office-based environmental impacts
Significant changes in financial position during the year
Statement on National Competition Policy
Subsequent events
Summary of the financial results for the year
Workforce Data Disclosures including a statement on the application of employment and conduct principles
Victorian Industry Participation Policy disclosures
75
14
14
14
14
13
15
13
72
14
14
14
74
69
14
14
73
15
13
15
15

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
Legislation Requirement
FRD 29A
SD 4.2(g)
SD 4.2(j)
SD 3.4.13
SD 4.5.5.1
SD 4.5.5
Workforce Data disclosures
Specific information requirements
Sign-off requirements
Attestation on data integrity
Ministerial Standing Direction 4.5.5.1 compliance attestation
Risk management compliance attestation
Financial Statements
Page Reference
5
13
11
Financial statements required under Part 7 of the FMA
SD 4.2(a)
SD 4.2(b)
SD 4.2(b)
SD 4.2(b)
Statement of changes in equity
Comprehensive operating statement
Balance sheet
Cash flow statement
Other requirements under Standing Directions 4.2
SD 4.2(a)
SD 4.2(c)
SD 4.2(c)
SD 4.2(d)
Compliance with Australian accounting standards and other authoritative pronouncements
Accountable officer’s declaration
Compliance with Ministerial Directions
Rounding of amounts
Legislation
Freedom of Information Act 1982
Protected Disclosure Act 2001
Carers Recognition Act 2012
Victorian Industry Participation Policy Act 2003
Building Act 1993
Financial Management Act 1994
76
21
19
20
22
14
14
14
14
14
15
15 &24
16
24
28

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
77

Casterton Memorial Hospital 107 th
Annual Report 2014 – 2015
78