Annual Report 2005-2006 - Forensicare

VICTORIAN INSTITUTE of
FORENSIC MENTAL HEALTH
Annual Report 2005 ~ 2006
“Building on our Knowledge”

Contents
Our Organisation IFC - 2
2005-2006 – The Year in Review 3-9
Chairman’s Report 10
Chief Executive Officer’s Report 11-13
Clinical Services 14-27
Reports Clinical Director
Director of Psychological Services
Director of Nursing Practice
Inpatient Services -
Thomas Embling Hospital, Prison Services
Community Forensic Mental Health Service
Professional Education and Research 28-36
Centre for Forensic Behavioural Science 37
Corporate Support and Development 38-45
Corporate Services
Legal Services
Business Support
Sustainability Management 46-53
Corporate Performance
Our People
Social Performance
Our Environment
Corporate Governance 54-67
Principles
Victorian Institute of Forensic Mental Health Council
Organisational Chart
Management Team
Legislative Compliance
Financial Performance 68-95
Financial Overview
Certification
Auditor-General’s Report
Financial Statements
Statement of Corporate Intent 96-97
Glossary 98
Disclosure Index 99
Index 100
Contact details and location
BC
The Annual Report and complementary Annual Research
Report to Council are available on our website –
www.forensicare.vic.gov.au
Victorian Institute of Forensic Mental Health
Yarra Bend Road
Fairfield 3078
Tel 61 3 9495 9100 Fax 61 3 9495 9190
Email info@forensicare.vic.gov.au
www.forensicare.vic.gov.au
ABN 32 807 323 885 ISSB 1442-990X
Our Organisation
The Victorian Institute of Forensic Mental Health, known as
Forensicare, was established as a statutory agency in 1997
to provide forensic mental health services to adults in
Victoria. These services are required to meet the needs of
mentally disordered offenders, the mental health and justice
sectors and the community. While we primarily focus on
providing clinical services, which include the effective
assessment, treatment and management of forensic
patients and clients, we also undertake research, training
and professional education. Organisationally, Forensicare
is structured to provide –
• Clinical Services – consisting of Inpatient, Prison and
Community programs
• Professional Education and Research – our Academic
Unit, together with Research and Professional
Education programs
• Corporate Support and Development – Administration
and Support, Advice and Planning, Development,
Consultancy Services and Communication.
Legislation
• Mental Health Act 1986 – the Act that establishes
the Institute and governs our responsibilities
• We also provide services under the Crimes (Mental
Impairment and Unfitness to be Tried) Act 1997,
Corrections Act 1986 and Sentencing Act 1991.
Clinical Operations
• Thomas Embling Hospital – a 100 bed, secure inpatient
hospital located in Fairfield.
• Prison Mental Health Service – consisting of a 16-bed
Acute Assessment Unit, specialist clinics, outpatient
services and a reception assessment program at
Melbourne Assessment Prison, together with a
consultant psychiatric service to the larger statemanaged
prisons.
• Community Forensic Mental Health Service – providing
four specialist community programs – Community
Forensic Mental Health Program, Court Services,
Problem Behaviour Program and the Transitional
Accommodation Program.
Values
Forensicare is guided by the Values established by the
State Services Authority for the public sector, and promotes
behaviours that are consistent with these values at all times
and in all circumstances. The values are - responsiveness,
integrity, impartiality, accountability, respect and leadership.
The values are:
• responsiveness
• integrity
• impartiality
• accountability
• respect
• leadership

Victorian Institute of Forensic Mental Health
Our Vision
….. To become an international centre of excellence
in understanding and treating mental disorders
associated with criminal behaviour.
Our Mission
….. To provide effective mental health services in a
safe and secure environment to people who have both
a mental disorder and a history of criminal offending or
who present a serious risk of such behaviour.
Our Objectives
We are committed to …..
• improving outcomes for people with a mental
disorder in the criminal justice system
• reducing the burden of mental illness in the
criminal justice system
• contributing to the delivery of public mental health
services
• enhancing community safety.
At Forensicare, we are proud of our staff and the reputation
that they have gained for quality and innovative service
provision in the mental health field, both nationally and
internationally. As an organisation, we take the opportunity
to showcase our staff in their daily work environment in our
Annual Report. Staff have asked not to be named individually,
and we respect their wishes. We thank all our staff for their
assistance and willingness to be photographed. 1

Building on our Knowledge
The Highs and Lows of 2005-2006
✔ Government funding of $21.1m (over 5 years) to expand
our inpatient bed capacity at Thomas Embling Hospital
on an interim basis (pages 11, 18).
✔ Commencement of the Forensic Behavioural Science
program, in collaboration with Monash University, to
increase the level of available skills in forensic mental
health (pages 16, 37, 40).
✔ Completion of an organisation-wide governance review
and implementation of a new governance framework
to ensure compliance with contemporary governance
requirements (pages 10, 12 56).
✔ Completion of the organisation-wide training of all staff
required under the Consolidating and Strengthening
Clinical Programs initiative (pages 12, 29).
✔ No significant security incidents during the year (page 48).
The Australian Council on Healthcare Standards and
receiving a Gold Award for the Annual Report 2004-2005
in the Australasian Reporting Awards (pages 12, 40).
✔ Establishment of a new program, Community Integration
Program, to provide essential post release planning for
prisoners with a serious mental illness (pages 12, 25).
✘ Struggle to meet the information technology needs
of the organisation (page 42).
✘ Limited progress in enhancing the capacity of the
Community Forensic Mental Health Service to meet
the demand for services (page 40).
✘ Lack of success in negotiating additional mental health
services at the Melbourne Assessment Prison through
a sub-acute step-down unit (page 20).
✔ Delivering a small surplus budget of $30,000, despite
operational pressures that required additional and
unplanned expenditure (pages 3, 11, 69).
✔ Acknowledgement of best practice by maintaining
our accreditation status in the periodic review by
2

2005-2006 The Year in Review
FINANCIAL PERFORMANCE
The Victorian Institute of Forensic Mental Health Council and
the Department of Human Services approved a $1.309 million
deficit budget for Forensicare for 2005-2006. To deliver the
$1.205 million deficit (outlined below and detailed in the 2005-
2006 Financial Statements, pages 69-95), while absorbing
unbudgeted costs (due to high levels of patient acuity and
associated additional staffing shifts) of $0.398 million, is
therefore a significant achievement for the organisation.
The deficit budget included depreciation of $1.235 million,
which is provided for separately by Government via capital
payments in response to submissions by Forensicare. No
Capital Funds were provided to Forensicare by the Department
of Human Services for the 2005-2006 financial year.
Forensicare’s financial performance is assessed by the
operating result before capital purpose income and
depreciation. This is because Government recurrent funding
for Forensicare is not intended to pay for the replacement of
Forensicare buildings or major capital equipment items. The
inclusion of capital grants and depreciation in the overall
operating result would distort any assessment of financial
performance.
The financial result is a tribute to the experience and
dedication shown by our managers and staff, who retained
a focus on their budgets while continuing to strive to
provide better care to our patients.
FINANCIAL PERFORMANCE AGAINST
BUDGET PLAN
The deficit budget approved by the Victorian Institute of
Forensic Mental Health Council for 2005-2006 excluded
capital income and depreciation of $0.088 million. The
decision by Council to continue the improvements in
financial performance that commenced in 2004-2005
contributed to the final outcome of a $0.030 million surplus.
Full details of the Institute’s Financial Performance Against
Budget are on page 71.
HOW WE ARE FUNDED
Total revenue from ordinary activities for the Institute was
$33.283 million, an increase of $0.654 million, or 2.0%, on
funding received in 2004-2005. The Institute receives 87%
percent of its revenue from the Department of Human
Services (see below). Increases in revenue from the
Department of Human Services and other sources were
used to fund increases in award entitlements.
COMPOSITION OF REVENUE
05/06 04/05 03/04 02/03
% $’000 % $’000 % $’000 % $’000
Service Agreement - Dept of Human Services 87% 28,844 86% 28,233 87% 26,347 86% 25,777
Service Agreement - Dept of Justice 8% 2,528 7% 2,435 8% 2,338 7% 2,290
Service Agreement - Care Plan Assessments
Victoria 1% 222 1% 348 1% 301 0% –
Investments 1% 292 1% 233 1% 187 1% 238
Contracted Services 1% 498 2% 492 2% 610 1% 461
Other Revenues 2% 899 3% 853 1% 288 2% 574
Capital 0% 0% 0% 3% 788
HOW WE SPENT THE MONEY
The services provided by the Institute are split in to four
outputs for financial performance (see Financial
Performance Against Budget, page 71). The operating
expenses for these outputs were $33.253 million, an
increase of $0.971 million, or 3.01% on the previous year.
The major contributor to the increase in Operating
Expenses was a rise in Employee Benefits and Property
and Maintenance expenses of approximately $2.051 million
or 6.36% from 2004-2005. This was offset, however, by
a reduction of Contracted Staff and Other Expenses of
approximately $1.139 million, or 3.53% from the previous
year.
Included in the above increase is $0.398 million that the
Institute was required to absorb for two unbudgeted
expenses (WorkCover increase and the transfer of
employee entitlements). To offset these two additional
expenses, the Institute reduced expenditure in two areas -
Contracted Services and Other Expenses - through the
continued enhancements and ongoing reductions in the
deficit management plan developed and introduced in the
2004-2005 financial year. Reduction in expenditure in both
areas was achieved without affecting the delivery of
patient/client services.
3

2005-2006 The Year in Review
FINANCIAL ANALYSIS OF OPERATING REVENUES AND EXPENDITURES
Year 05/06 04/05 03/04 02/03 01/02 Change 03/04
$’000 $’000 $’000 $’000 $’000 – 05/06
Total Revenue 33,283 32,629 30,071 30,130 27,202 10.5%
Total Expenses 34,488 33,514 31,924 29,592 26,484 7.9%
Net Operating Result (b/f abnormals) (1,205) (885) (1,853) 538 718 35.0%
Total Assets 47,017 47,408 41,232 43,221 40,604 14%
Total Liabilities 6,713 5,899 5,089 5,225 3,128 31.9%
FINANCIAL ANALYSIS OF THE OPERATING RESULT
2005 – 2006 Operating Result
2004 – 2005 Operating Result
2003 – 2004 Operating Result
2002 – 2003 Operating Result
-2.0 -1.5 -1.0 -0.5 0.0 0.25 0.50 1.0
$M
*Result after capital and depreciation
*Result before capital and depreciation
*Measuring Forensicare Financial Performance
Forensicare’s financial performance is usually assessed by the operating result before capital purpose income and
depreciation. This is because Government recurrent funding for Forensicare is not intended to pay for the replacement
of Forensicare buildings or major capital equipment items. The inclusion of capital grants and depreciation in the overall
operating result therefore distorts any assessment of financial performance.
FIVE YEAR COMPARISON OF DEBTORS BY CATEGORY
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
05/06 04/05
03/04
02/03
01/02
4
Trade Debtors
Dept Human Services - Employee Entitlements
Note - The Department of Human Services debt is primarily related to employee entitlements (long service leave) -
see Financial Statements, note 1(o) Indirect Contributions and note 2 (Statement of Understanding and Service
Agreement). Trade Debtors consist of amounts owing by a range of businesses/agencies for services rendered
by Forensicare.

SERVICE PERFORMANCE AT A GLANCE
2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 Change
2003-2004
- 2005-2006
Thomas Embling Hospital
Number of beds 100 beds 100 beds 100 beds 80 beds to Oct. 2002 80 beds
then increase to 100
Occupied bed days 36,426 36,293 36,356 33,577 28,616 0.2%
Occupancy rate 99.75% 99.12% 99.4% 97.29% 98.4% 0.4%
Number of admissions 131 146 149 142 175 12.1%
Number of separations 130 137 147 119 170 11.6%
Number of reports prepared for Victorian courts 63* 109 111 120 120 43.2%
Community
Number of clients 895 654 562 447 n/a 59.3%
Number of reports prepared for Victorian courts 303* 328 355 372 274 14.6%
Number of assessments performed
for public mental health services 189 254** 191 138 77 1%
Prison
Number of reception assessments 4,396 3,886 3,568 3,885 4,014 23.2%
Referrals for psychiatric assessments (incl. Psych.
Consultants, Psych. Registrars, Psych. Outpatients) 5,782 5,661 4,689 3,169 2,893 23.3%
Number of reports prepared for Victorian courts 205 199 190 197 145 7.9%
Corporate
Employees, EFT number at 30 June 254.9 249.5 243.5 233.9 210.3 4.7%
Staff turnover rate 5.81% 9.26% 6.28% n/a n/a 7.5%
* The demand for court reports is entirely court driven. Forensicare has struggled over past years to meet the level of requests for reports, and the waiting time for report completion
has increased from 4 to 6 weeks. Even though the number of reports provided to courts reduced in 2005-2006, there was still an average of 1.21 reports prepared each week on
patients in Thomas Embling Hospital and an average of 5.82 reports prepared by Community Forensic Mental Health Service. These figures exclude reports requested by the Adult
Parole Board and the Office of Public Prosecutions, and other agencies, including assessments/opinions requested in relation to the Serious Sex Offender Monitoring Act 2005.
** The focus placed on the provision of training to area mental health services in 2004-2005 resulted in the substantial increase in the number of requests received for secondary
consultations from these services in the same period.
5

2005-2006 The Year in Review
REPORTING AGAINST OUR OBJECTIVES 2005-2006
A Corporate Plan is prepared each year for the Minister for
Health. The Plan includes initiatives to be undertaken in the
coming year, together with the performance measures
established for Forensicare by the Department of Human
Services.
The key initiatives established for 2005-2006 are detailed
below, together with a summary of our achievements, a
self-assessment of our performance during the year and
future projections in respect to each initiative.
Reports against Performance Measures/Targets are
included under individual program areas (pages 21, 23,
26, 33, 36, 45).
INITIATIVE PROGRESS SELF-RATED THE FUTURE
PERFORMANCE
Clinical Services
Inpatient
(Performance Measures see pages 21, 23)
Implement new clinical programs and
systems to effectively address patient
management requirements and cooccurring
disorders and offending
behaviour.
✔
Developments continued to the
Consolidating and Strengthening
Clinical Programs initiative - further
and ongoing clinical training was
conducted, a range of patient
programs introduced and the overall
program evaluation commenced
(pages 18-19).
The Consolidating and Strengthening
Clinical Programs initiative will continue
to be the major focus for clinical
development across the organisation.
Evaluation will form the basis for
ongoing service enhancement.
Establish a comprehensive Vocational
Rehabilitation Program.
A Vocational Rehabilitation Program
has been implemented as a 12-month
pilot program across the hospital
(page 19).
✔
Ongoing provision of the program will
be subject to the 12 month evaluation
conducted early in 2006-2007.
Implement new contractual
arrangements within Thomas Embling
Hospital for the provision of catering,
cleaning, pathology, pharmacy.
Implemented. New contracts have
been established for catering,
cleaning, pathology and pharmacy.
New arrangements have also been
established for the provision of
recreation services (page 19).
✔
These contracts are subject to regular
review and strategies have been
implemented to ensure close
monitoring of contract performance.
Review the computer infrastructure
supporting the individual components
of the security system at Thomas
Embling Hospital to determine longterm
viability, and implement review
recommendations.
An external review of the security
infrastructure was conducted and
recommendations made to upgrade
identified equipment (page 48).
✔
Funding to upgrade the security
infrastructure will be sought from the
Department of Human Services in the
coming year.
Further consolidate and advance
service delivery to Juvenile Justice.
Forensicare continued to provide
fortnightly consultant psychiatrist
sessions to juvenile justice and has
taken steps to develop new specialist
capability for adolescent and young
offenders through the provision of
specialist clinical training (page 19).
✔
Subject to staffing levels, further steps
will be taken in the coming year to
provide additional assistance to
juvenile forensic mental health service.
Community
(Performance Measures see page 26)
Implement the recommendations
relating to Forensicare’s Court Liaison
Service that were included in the draft
review of statewide mental health
court liaison services.
✔
All relevant recommendations
contained in the view of the Court
Liaison Service have been
implemented (page 25).
Negotiations have commenced with
Court Services to formalise an
exchange of information between the
Court Liaison Service and the Court
Services Integration Program (to be
implemented by courts in 2006-2007).
6
Undertake a 12 month evaluation of
Transitional Accommodation Program.
Evaluation completed and
implementation of recommendations
commenced. Implementation works
have ceased pending the temporary
cessation of the program (subject to
planning requirements, the existing
program accommodation is to be used
to expand the inpatient capacity of
Thomas Embling Hospital) (page 25).
✔
Development of an alternative
transitional outreach/accommodation
service has commenced and will be
established, subject to funding, in
2006-2007.

INITIATIVE PROGRESS SELF-RATED THE FUTURE
PERFORMANCE
Subject to funding, strengthen and
develop effective post release planning
for prisoners with a serious mental
illness.
Implement new reporting systems for
the management of offenders on Non-
Custodial Supervision Orders.
Develop a fee-for-service specialist
Victim Assessment Service.
Professional Education and Research
A Community Integration Program was
established to provide intensive
integration support to prisoners with a
serious mental illness about to be
released from custody. Additional
funding was received from the
Department of Human Services to
enable the program to commence
(page 25).
Implemented. The new reporting
systems are used in the clinical and
administrative management of these
orders (page 25).
The Victim Assessment Service
commenced operating in October
2005. Priority has been given to
promoting the service among the
agencies funded to provide initial
support to victims (page 25).
✔
✔
✔
A 12-month review of the Community
Integration Program will be conducted
in 2006-2007.
The new reporting systems are now
operational.
Forensicare will continue to work
closely with the Victim Support Agency
to assist and support its development
and operations.
Research
(Performance Measures see page 36)
Under the auspice of the Research
Committee, undertake research on –
• the effectiveness and impact of the
Crimes (Mental Impairment and
Unfitness to be Tried) Act 1997
• risk management and risk
management tools
• stalkers and their victims
• problem gambling
• threats to kill
• sex offending, including the use of
child internet pornography
• the role of nursing in improving
mental health outcomes and
evidence-based psychiatric
nursing practice
• substance abuse and mental
illness
• inpatient aggression
• cognitive behaviour therapy with
forensic patients
• prevalence of offenders with a
mental illness re-entering prison
in the context of a relapse of their
mental illness
• violence on the roads.
Work has commenced and is ongoing
on all identified research projects
(pages 34-35).
✔
Our research program continues to be
an integral part of our organisation and
our ongoing developments in service
delivery.
Professional Education
(Performance Measures see page 33)
Provide specialised training to rural
and metropolitan area mental health
services and other services.
Forensicare has provided specialised
forensic mental health training to area
mental health services and other
agencies and participated in the North
Eastern Victoria Introduction to
Learning (NEVIL) cluster group
established to facilitate cross agency
training (page 30).
✔
Forensicare will continue to promote
forensic mental health skills and
training to area mental health services
and other agencies.
Promote a better understanding of
forensic mental health within the legal
and criminal justice sectors.
Working closely with the Judicial
College of Victoria, we have provided
tours of Thomas Embling Hospital and
presentations to Judges, their
Associates and Magistrates (page 45).
✔
Forensicare will continue to work
closely with the legal and criminal
justice sectors to promote a greater
understanding of forensic mental
health issues.
7

INITIATIVE PROGRESS SELF-RATED THE FUTURE
PERFORMANCE
Further pursue fee-for-service
consultancies and develop a grant
application capability to assist in
underwriting our professional
education and research program.
Forensicare was a member of two
consortia successful in obtaining
research grants in 2005-2006. The
outcome of another funding
application submitted in 2005-2006
will be advised later in 2006 (page 41).
✔
These activities will continue as an vital
source of funding for our research
program.
Corporate Support and
Development
(Performance Measures see page 45)
With the agreement of the Department
of Human Services, review and
resubmit the funding proposal for the
development of a combined secure
extended care/medium-secure
forensic hospital (with approx 100 bed
capacity) to the Department.
Completed. On the basis of our
proposal, the Department of Human
Services succeeded in obtaining
funding in the May 2006 Budget
to enable planning to commence
on a facility to provide secure
accommodation for people requiring
longer-term care, which will build on the
commitment to increase bed capacity
at Thomas Embling Hospital (page 40).
✔
It is envisaged that the planning
process for a new facility will
commence as a matter of urgency
early in 2006-2007.
With the agreement of the Department
of Human Services, prepare and
submit a funding proposal to the
Department to expand the Community
Forensic Mental Health Service to
meet the documented growth in
demand for specialist community
forensic mental health services.
Completed. A formal proposal for
capacity enhancement of the
community service was submitted to
Department of Human Services. The
outcome of our proposal has not been
advised (page 40).
✔
Addressing the identified service
demand issues will require future
government resourcing.
Continue the development of
organisational and clinical benchmarks
with other Australian forensic
jurisdictions.
Forensicare has continued to
participate in the federally funded
National Benchmarking Project, as
one of the four invited forensic mental
health service agencies. Development
of the benchmarks has continued and
is ongoing (page 40).
✔
The project is scheduled to conclude
in May 2007.
Develop a formal arrangement with the
Victorian Institute of Forensic Medicine
to enhance inter-agency co-operation
and undertake joint research and
funding applications.
Completed. The formal agreement
was signed in November 2005
(page 40).
✔
Opportunities for joint collaborations
will be pursued.
Seek approval from Monash University
to establish a Centre for Forensic
Behavioural Sciences at Monash
University, School of Psychology,
Psychiatry and Psychological Medicine.
Agreement has been reached by
Monash University for this initiative
to proceed (page 37).
✔
The Centre, through research, teaching
and clinical outputs, will make a vital
contribution to the development of best
practice models of care and treatment
in forensic behavioural science.
Continue the curriculum development
and establishment of an accredited
post-graduate course in forensic
behavioural science with Monash
University (for specialist clinicians and
those in area mental health services,
corrections, law, teaching, child
protection and juvenile justice). Partner
with NSW Justice Health to tailor the
teaching program to markets outside
Victoria.
Curriculum development was
completed for the Certificate in
Forensic Behavioural Science, and
the program commenced in February
2006. Discussions with NSW Justice
Health are ongoing. NSW has
determined to develop a local
program, however synergies and
collaboration make some sort of joint
future approach likely (pages 37, 40).
✔
A Graduate Certificate and Graduate
Diploma in Forensic Behavioural
Science will be offered through
Monash University, commencing
in 2007 academic year.
Contribute to the national endeavour
to establish forensic mental health
service standards and performance
targets.
Standards for forensic mental health
have been endorsed by all state
Health Ministers. Approval by state
Corrections Ministers is awaited
(page 40).
✔
Victoria has a high level of compliance
with the National Standards and we
will continue to work with the
Department of Human Services and
other jurisdictions on progressing this
project.
8
Successfully undertake The Australian
Council on Healthcare Standards
periodic review and maintain
accreditation status.
Achieved. The formal periodic review
of our accreditation status was
conducted in August 2005 and our full
accreditation confirmed (page 40).
✔
We are required to complete a selfassessment
under the Australian
Council on Healthcare Standards
(ACHS) accreditation contract in
August 2006. Our next ACHS
organisation-wide survey will be
held in August 2007.

INITIATIVE PROGRESS SELF-RATED THE FUTURE
PERFORMANCE
Identify opportunities to broaden the
delivery of clinical services across the
organisation to enable specialist
services to be provided for –
• victims
• sex offenders
• aged/elderly patients and clients.
A specialist service has been
developed and commenced operating
in 2005-2005 for victims of crime.
Specialist clinical services continue to
be provided for sex offenders through
our Problem Behaviour Program.
A large research initiative has been
approved to commence in July 2007
to investigate the physical and mental
health needs of elderly prisoners in
Victoria (pages 25, 41).
✔
Forensicare will continue to monitor
emerging target groups and pursue
clinical developments to meet their
specific needs. The research initiative
on the mental health needs of elderly
prisoners will inform our future
provision of targeted services to the
emerging population of elderly mentally
disordered offenders.
Review the reports prepared across
the organisation for all agencies within
the criminal justice sector to identify
the level of demand and resource
impact, and develop a management
strategy for the ongoing preparation
of reports.
A review of reports prepared across
the organisation, which incorporated
a detailed analysis of reports for the
Office of Public Prosecutions over the
previous three years, was completed
in 2005-2006. A strategy was
developed to manage future demand
(page 44).
✔
The strategy developed to manage
the demand for reports will require
ongoing monitoring to ensure service
demands do not outstrip available
resources.
Continue to seek funding to implement
wide ranging environmental
sustainability initiatives across the
organisation.
A loan was accepted from the
Department of Human Services to
implement a range of environmental
initiatives. Implementation of the
initiatives commenced in 2005-2006
and will be ongoing in the coming year
(pages 52-53).
✔
The ongoing improvement of our
environmental performance continues
to have a high priority across the
organisation. Funding avenues will
continue to be sought to further our
performance in this regard.
Subject to funding, continue the
redevelopment of information
technology based management
systems, for operational, planning
and research purposes.
Additional funding was not provided
by the Department of Human Services
in response to our proposal to
redevelop our information technology
management system. We have
refocussed our governance
arrangements to strengthen our
capacity for strategic planning in this
vital business process area of our
operations (pages 42-43).
✘
Forensicare is currently preparing
a business case for the Department of
Human Services on the redevelopment
of our information technology systems.
Continue to endeavour to influence
the development of a more rational,
effective and efficient health service
arrangement for men and women
in Victorian prisons.
Forensicare submitted a proposal
to the Department of Justice for a
significant increase in mental health
service capacity at Melbourne
Assessment Prison and other prisons
in 2005-2006. To date, we have had
no response to the proposal (page 20).
✔
Forensicare will continue to monitor
developments in Victoria in respect to
the provision of forensic mental health
services and work collaboratively with
Corrections Victoria and the
Department of Justice to improve
service delivery in forensic mental
health. We understand that the
Department of Justice is holding
an external review of health services
in the criminal justice system early in
2006-2007.
Consolidate and further develop
organisational (including financial) risk
assessment and management
systems, including aggressive pursuit
of new organisational governance
compliance requirements.
Completed. A review of the
governance arrangements within
Forensicare was completed and
recommendations significantly
progressed (page 56).
✔
Governance compliance will continue
to be monitored across Forensicare to
ensure that the standards established
for public hospitals and contemporary
initiatives in private sector agencies
are met.
Examine the feasibility of establishing
a forensic mental health specialist
advisory and support service for police
and mentally ill people detained in
police custody.
Work with Victoria Police in relation to
the management and care of mentally
ill offenders/alleged offenders
commenced and is ongoing (page 41).
✔
Ongoing support will include the
provision of advice on police training
content and joint research activity
regarding policing and the mentally ill.
✔
✘
Initiative completed
Initiative not achieved/not completed
Initiative is ongoing
9

Chairman’s Report
The Council was very pleased that funding was provided
by Government in the May 2006 Budget to increase our
inpatient capacity at Thomas Embling Hospital on a shortterm
basis by an additional 18 interim beds. We were also
pleased to see that Government committed funding for the
initial planning of a permanent enhancement to the
statewide secure inpatient capacity.
Addressing our immediate service provision shortfall has
been a major focus for us over the past two years. It has
not, however, been our sole focus. We have continued to
develop our services to meet the ongoing and emerging
needs of our patients, clients and stakeholders through
program developments such as the Consolidating and
Strengthening Clinical Programs initiative and the
broadening of our Problem Behaviour Program at our
community clinic.
During the past year we also addressed the importance
of corporate governance across the organisation. Council
authorised an external review of our corporate governance
arrangements to ensure that our systems and processes
were in keeping with contemporary practice. The wideranging
recommendations of the review are rapidly being
implemented, and we report against a new Committee
structure and Principles in this Annual Report.
In terms of budget, Council is pleased to report a surplus
position for the organisation, excluding depreciation. This is
due primarily to the close monitoring and prudent financial
management by our senior management and staff.
We welcomed two new members to Council during the
year, Dr Joan Clarke, OAM, and Dr Peter Doherty, each
of whom filled a vacancy created through the retirement
of previous members. I would like to thank the retiring
members Judith Player and Dr Robert Adler for their
enthusiasm, interest and input while members of Council.
Judith Player was a foundation member of the Council,
joining the first Council in 1998, and her contribution over
the past eight years has been invaluable.
Our management team and staff, led by Michael Burt,
our Chief Executive Officer, and our clinical team led by
Professor Paul Mullen, have continued to deliver quality
service with their dedication to forensic mental health.
We thank them and look forward to the coming year
with enthusiasm.
Jim Kennan, SC
Chairman
10

Chief Executive Officer’s Report
It is very pleasing to report that this year has been our most
successful since the historic commissioning in 2000 of what
is internationally regarded as the world’s leading forensic
facility, the Thomas Embling Hospital. While we have
continued to struggle with unrelenting demand growth for
our clinical services from both the criminal justice system
and general mental health services, we have achieved
substantive progress on multiple dimensions of our
organisation’s responsibilities and building our sustainability
for the future.
Mental illness and the need to address the challenges
of service delivery has been under the spotlight at both
a federal and state level during the past year. Particularly
encouraging has been the extent to which the unmet needs
of seriously mentally ill people in Australia’s criminal justice
systems have been acknowledged. Importantly, there
seems to be an increasing recognition of the overlap
in mentally ill populations of those with very challenging
illnesses and those who transition our criminal justice
systems. The extent to which our society is prepared to
invest resources in treating and managing the seriously
mentally ill must be recognition of the opportunities that
exist, not only to relieve the illness burden, but to prevent
serious crime. Forensicare acknowledges the Victorian
Government’s leadership in embracing this issue in its
service development planning.
In 2005-2006 Forensicare has –
Met our financial and operational obligations
Virtually all performance requirements have been met
or exceeded and we ended the year with a significantly
better budget outcome than forecast. This was despite
unexpected expenses and several months of inflated
operating costs, due to a large number of particularly ill
and disturbed patients. A productivity improvement culture
is evident in our operations, and this, together with an
outstanding staff retention level (particularly in our
predominately nursing workforce), is largely responsible
for the excellent outcome.
Received funding to begin addressing
identified service shortfalls
In May 2006, the Victorian Government announced funding
of $21.1m (over 5 years) to enable immediate work to
commence on the provision of additional secure acute
inpatient beds at Thomas Embling Hospital. Subject to
the requisite planning approvals, eighteen additional beds
should be commissioned early in 2007. This will, in the
short term, ease the unrelenting and increasing demand
pressures, particularly from the prison system. It is,
however, critical to note that this modest increase in
capacity will be rapidly consumed. It is imperative for
the justice system, the mental health system and for the
community safety of Victoria, that a permanent and more
sustainable capacity is developed as a matter of urgency,
to actively treat and manage forensic and challenging civil
patients.
It was most encouraging to see funding earmarked
in the budget for planning to begin on a new specialist
secure extended care facility, envisaged by Forensicare
to be developed collaboratively with a major metropolitan
public hospital mental health service. This large project,
capital funding permitting, will likely take 3-4 years to
commission. It is urgently needed and such a facility will see
Victoria leading Australia in the recognition that provision of
adequate intensive treatment and rehabilitation in a secure
environment will deliver tangible enhancements to
community safety.
11

Continued to build on our capacity and
sustainability
A major focus for us during the year was the strengthening
of our governance capability to ensure that our
arrangements reflect best practice. We comprehensively
re-aligned our internal governance structures and strategic
audit and planning processes, in accordance with the
Department of Human Services and central government
agency expectations. This will position us to meet our
public responsibilities and to sustain and develop our
services into the future. It was rewarding to have our 2004-
2005 Annual Report recognised with a gold award for the
second year in a row by the Australasian Reporting Awards,
and in doing so, be benchmarked against Australia and
New Zealand best practice reporting in both the public
and private sectors.
The new Centre for Forensic Behavioural Science,
which is highlighted in this Report, establishes a multidisciplinary
professional training and research organisation
across Forensicare and Monash University. This will
constitute a new, permanent and dynamic infrastructure
supporting and promoting long term sustainability for both
our own specialist clinical services and other public sector
and non-government organisation ‘forensic’ workforces,
ie. Victoria Police, Child Protection, Community Corrections
and very importantly, general mental health service clinicians
and managers across Victoria. While the Centre should be
officially launched in 2006-2007, the academic training
program, a key component of the Centre’s activities,
commenced in the 2006 academic year.
High quality research productivity remains a centrepiece
of our organisation’s activities. We have demonstrated the
power of our research strategy in building a successful
service. While research outcomes inform policy and
program development, the culture of continual questioning
of our practices drives quality improvement as an inherent
dimension of our business.
Upgraded and strengthened security
Major progress occurred during the year on planning
for the replacement of the security infrastructure at Thomas
Embling Hospital. Funding of $245,000 was received from
the Department of Human Services to support initiation of
the roll-out of security enhancements. Importantly, no major
security incidents occurred during the year.
Developed innovative programs
• Community Integration Program – This small pilot
program targets seriously mentally ill remand and
sentenced prisoners prior to their release from prison
and facilitates effective linkages and referrals to mental
health treatment programs in the community. The
program has demonstrated effective outcomes and is
important, as we know that without intervention this
target population of prisoners is very likely to relapse
into illness and recidivism.
• Problem Behaviour Program – The development
of this clinical assessment, advisory and treatment
program within our small community forensic service
continued during the year. It is an internationally leadingedge
initiative for people who demonstrate worrying
and potentially dangerous behaviour (including sex
offenders), with or without the presence of a formal
Axis I psychiatric diagnosis.
• Consolidating and Strengthening Clinical Programs
– The momentum of the organisation-wide
implementation of this program continued during the
year. This development is seeing Forensicare expand its
core business of assessment and treatment of mentally
disordered offenders to incorporate systematic attention
to substance abuse disorders and recidivism reduction
interventions. The initiative recognises the central role
that abuse of substances has in exacerbating mental
disorders and increasing the risk of recidivism.
Pictured at the launch of the Memorandum of Understanding
between the Victorian Institute of Forensic Medicine and
Forensicare. From left, The Hon. Jim Kennan, Chair, Victorian
Institute of Forensic Mental Health Council, Professor Stephen
Cordner, Director, Victorian Institute of Forensic Medicine, Michael
Burt, CEO, Forensicare, Professor Paul Mullen, Clinical Director,
Forensicare, The Hon Bronwyn Pike, Minister for Health, Silvio
Tiziani, CEO, Victorian Institute of Forensic Medicine and The Hon
Rob Hulls, Attorney-General.
Formalising our relationship with the Victorian Institute of Forensic
Medicine. Pictured left, Professor Stephen Cordner, Director
Victorian Institute of Forensic Medicine with Professor Paul Mullen,
Clinical Director, Forensicare.
12

Collaborative undertakings
• Victoria Police – The strong relationship developed in
recent years between Forensicare and Victoria Police
has continued. Over the past year we provided
assistance and advice in relation to specialist training
for operational Police on the management of mentally
disordered persons. A collaborative and ambitious 5
year research project, which will inform future policing
policy and training, was also initiated.
• Care Plan Assessments Victoria – Our consortia
partnership with the Australian Community Support
Organisation under the government’s innovative Multiple
and Complex Needs Initiative has continued to evolve
and strengthen. Care Plan Assessments Victoria prepares
detailed multi-disciplinary assessments and care plans
on Victoria’s most challenging group of clients.
Continued prison mental health care service
delivery
Forensicare’s long-standing provision of specialist mental
health care to Corrections Victoria continued and
strengthened during the year. We commenced providing
services to both the new Metropolitan Remand Centre
and Marngoneet Correctional Centre. In the coming year,
we anticipate a longer-term solution to service delivery
difficulties inherent in the provision of health services to
prisoners. It is encouraging to be advised that the
Department of Justice is engaging expert consultants to
examine the potential for reform and rationalisation of the
current arrangements for providing prisoner health care
in Victoria.
Thank you to our Council and staff
The sound achievements of the past year reflect a
supportive Council, a highly skilled and dedicated senior
management team and staff who are committed to
providing quality care to people in the criminal justice
system who have a mental illness. While being a year of
many achievements, it has also been a year that has had
difficult moments. On a clinical front, we have provided care
and treatment to patients and clients with a high level of
illness acuity, while dealing with what appears to be an
ever-present demand for beds and services. Visitors to
Forensicare frequently remark on the professionalism and
friendliness of our staff, and I thank all staff for the skills and
enthusiasm that they demonstrate on a daily basis and their
contribution to our overall success. I would also like to
thank our Chairman, Jim Kennan, and Council members for
their support, vision and the genuine concern that they have
for the continued wellbeing of our patients and clients.
On behalf of Forensicare I acknowledge the close working
relationships that we have with the Department of Human
Services, the Department of Justice, the Victorian Institute
of Forensic Medicine and other criminal justice and mental
health agencies with whom we have close contact, in
particular, Monash University, Victoria Police and Australian
Community Support Organisation. We have worked closely
with these agencies over the past year on joint ventures,
and our fruitful and mutually beneficial relationship will
continue over coming years.
Conclusion
Our activities over the past year reflect the ethos of
Forensicare - despite being a health care agency, we
accept that we have an inherent responsibility for not
only the best interests of our patients and clients, but
importantly, for the public safety of the Victorian community.
We will continue to direct our energies over the coming year
to providing quality care and protection to all parties. In
doing so, we will rely heavily on the outcomes of our wide
ranging research-related activities. These activities fuel our
capacity building, inform policy, improve clinical programs
and patient outcomes and contribute greatly to our ability
to successfully recruit, retain and develop our specialist
workforce.
Michael Burt
Chief Executive Officer
The Hon Tony Abbott, Federal Minister for Health and Ageing
visiting the Thomas Embling Hospital, pictured with Professor
Paul Mullen, Clinical Director, Forensicare (left) and Michael Burt,
CEO, Forensicare (right).
13

14
Clinical
Services

Clinical Director’s Report
A rapid development in forensic mental health services
is occurring in most of Australia’s states and territories.
Tasmania has just opened a new inpatient unit; Queensland
now has a new forensic hospital in Brisbane and a unit in
Townsville; New South Wales is well advanced with plans not
just for a new hospital, but an expansion and reconfiguration
of all of its forensic services; Western Australia is considering
ambitious plans for an expanded services for mentally ill
offenders and a service for seriously personality disordered
recidivist offenders (modelled on the Dangerous and Severe
Personality Disordered Program recently commissioned in
England). The Australian Capital Territory is also giving serious
consideration to developing its own forensic mental health
inpatient and community service. These Australian initiatives
mirror similar developments overseas, where massive
expansions have occurred over the last decade in the
provision primarily of secure forensic inpatient services.
The role of Forensicare in service
development
Forensicare, both organisationally and through the efforts
of a number of individual staff members, has had the privilege
of contributing to the developments in forensic services in the
other states and territories. The lessons learnt in Victoria over
the last decade are assisting our interstate colleagues in
planning their own services. There is pleasure, and no small
measure of pride, in being regarded to some extent as a
model and a resource for these other services. But there
is also a challenge. These new Australian services have the
opportunity to start from where Forensicare reached after
a decade of development.
Already NSW has developed an organisational structure
superior in many aspects to our own and giving priority to the
development of adolescent forensic mental health services,
Western Australia is contemplating what can only be
regarded as an adventurous initiative in the management of
high risk recidivist offenders, and Queensland is seriously
facing up to the challenge of service provision for the mentally
disordered offenders from our indigenous communities. Other
states are leaving us considerably behind in establishing
coordinated programs for sex offenders, particularly child
molesters, in which systematic assessment and management
is provided by integrating forensic mental health and
correctional resources in the common pursuit of a safer
community for our children. Forensicare’s days of being able
to assume pre-eminence in the provision of forensic mental
health services in Australia is over. We will now have to strive
to keep up with our interstate colleagues.
Our staff and clinical practice
We still retain in Forensicare certain advantages. Our greatest
resource is our staff and the culture of care which has
developed over a decade. Few other mental health services
could even attempt the radical restructuring of clinical
approach represented by the Consolidating and
Strengthening Clinical Programs initiative. This new approach
to clinical practice augments the traditional emphasis on
managing the symptoms of mental illness with an equal
emphasis on both the treatment of substances abuse, and
the improvement of the psychological and social disabilities
which together impair our patients functioning, and increase
their risks of returning to antisocial and violent behaviours.
The culture of care, which employs therapeutic rather than
custodial approaches to behavioural control, enables our
inpatient services to manage the State’s potentially most
violent and disturbed group of patients, without resort to the
intimidation and force implicit in the use of security guards.
Research collaborations between our nursing and psychology
staff have developed systematic approaches to evaluating and
managing the risks of violence in the inpatient context which
are already being adopted in other services around the world.
Looking to the future
We can be proud of the current quality of care delivered by
Forensicare, but not complacent. Excellence, particularly in
forensic mental health care, is always fragile, and there is an
ever present risk of reversion to the custodial practices of
institutional oppression which has historically defined secure
forensic services. The energetic and able input from our
consumer consultants is one defence against such
degeneration. The quality of our clinical staff is another. Above
all, we are defended from deteriorating back into the practices
of yesterday by an environment characterised by openness
to new ideas, research, and the self-critical monitoring and
willingness to change which makes quality improvement
a reality. These defences are, for all their apparent solidity,
vulnerable to policy decisions over which we have little control.
We live in a time when punitive responses dominate the
western world’s approach to the fear of crime and criminals.
Imprisonment rates continue to skyrocket, guaranteeing
nothing but larger and larger cohorts of men and women
destined for lives of crime. We also live in a community
where fiscal restraint is bearing heavily on the less politically
appealing areas of state funded health care, including mental
health. We are able to glimpse current signs of more
enlightened approaches from the State Government.
This however, will avail us little without effective advocacy.
We must also make constant efforts to make clear to the
community and their representatives that what we provide at
Forensicare is not just good medicine, but a real contribution
to a safer community.
Paul E Mullen
MB BS, DSc., FRANZCP, FRC Psych.
Professor of Forensic Psychiatry, Monash University
Clinical Director, Victorian Institute of Forensic Mental Health
15

Director of Psychological Services’ Report
Across the organisation, psychologists have continued
to contribute to all areas of Forensicare’s operations.
In addition to clinical interventions, psychologists are active
in program and policy development, training and our
ongoing research program.
Centre for Forensic Behavioural Science
In the past year a number of significant milestones have
been passed in the development of the forensic mental
health area between Forensicare and Monash University.
Central among these is the development of the Centre for
Forensic Behavioural Science that was approved by the
School of Psychology, Psychiatry, and Psychological
Medicine at Monash University in June 2006. In 2004 an
independent consultation was undertaken to review the
relationship between Forensicare and Monash University.
One of the recommendations of the review was to create
a centre within the University to allow the further
development of the areas of forensic mental health and
forensic behavioural science. While the Centre for Forensic
Behavioural Science is an entity within the university,
Forensicare will play a key partner role in the Centre. It is
envisaged that further related agency members will become
affiliated with the Centre in due course. The vision of the
Centre is to become the pre-eminent organisation for
research, training, and consultation in the forensic mental
health and forensic behavioural science areas.
Certificate in Forensic Behavioural Science
This year marked the inauguration of the Certificate
in Forensic Behavioural Science (FBSci) under the
coordination of Dr Andrew Carroll and Dr Kylie Thomson.
Twenty six students from a range of agencies and
professional backgrounds enrolled in the Certificate course.
We are now in the final stages of developing the Graduate
Certificate and Graduate Diploma in Forensic Behavioural
Science that will provide a greater level of training to those
in the field. It is anticipated that the Graduate Diploma will
be offered from the beginning of the 2007 academic year.
Our Staff
Psychologists continue to make strong contributions in
Forensicare. Dr Michael Daffern, Principal Psychologist,
has spent the past year in the United Kingdom where he
is working as a Research Fellow with the Peaks Academic
and Research Unit at Rampton Hospital and at Nottingham
University. He is involved in evaluating the Dangerous and
Serious Personality Disorders Unit at Rampton Hospital.
This experience will prove useful to Forensicare as we
continue to develop evaluation strategies for our programs
and activities. Dr Kylie Thomson has been Acting Principal
Psychologist in Dr Daffern’s absence. In addition,
Dr Thomson has taken up the post of Manager of the
Problem Behaviour Program in the Community Forensic
Mental Health Services, replacing Lisa Warren who has
taken an academic position at Monash University.
Three new psychologists have joined Forensicare in 2005-
2006. Ann Davidson has joined the Thomas Embling
Hospital, and Rachel MacKenzie and Kate McSweeney
have joined the Community Forensic Mental Health Service.
Finally, Chris Drake moved from the Community Forensic
Mental Health Service to the Thomas Embling Hospital.
We welcomed Dr Stuart Thomas, a forensic epidemiologist,
to Forensicare in late 2005. Dr Thomas is employed as a
Lecturer in the Centre for Forensic Behavioural Science at
Monash University and he is working closely with Forensicare
staff in a number of research and evaluation projects.
Professor James Ogloff
Director of Psychological Services, Victorian Institute
of Forensic Mental Health
Foundation Professor of Clinical Forensic Psychology,
Monash University
16

Nursing Practice Director’s Report
Nursing at Forensicare, as in most mental health services,
comprises by far the greatest number of staff. The value of
nursing, however, and the contribution of nursing to patient
care and service development do not often receive the
deserved attention. The lack of recognition occurs for a
variety of reasons.
Nursing practice at Forensicare
Nursing practice at Forensicare is inspiring, but nurses, by
virtue of their expertise, perceive what they do as ‘ordinary’
and take for granted their contribution. The scope of
nursing knowledge and skill is huge, and brings to mind the
adage that a nurse is a ‘Jack/Jill of all trades and master of
none’. To be contemporary with the vast array of nursing
knowledge and skill is an impossible task. The discipline of
nursing often receives criticism for lacking depth in many
areas, rather than the recognition of possessing a breadth
of knowledge and skill.
Nurses also work in large teams and can be viewed as
interchangeable and the unique expertise of individuals can
be difficult to determine. Due to the large number of nurses,
it is often difficult to capture the range of nursing initiatives
and achievements in reports about nursing. For these and
other reasons, nursing as a discipline is not adept at
promoting nursing accomplishments.
Nurses at Forensicare hold significant roles at all levels of
the organisation in management, education, research and
practice. In this report I will make special mention of two
groups - the clinical nurses, and the nurses who are the
middle management group.
Middle management nurses
The middle management nursing group comprises the
team leaders at the Melbourne Assessment Prison, the
Community Forensic Mental Health Service and the unit
managers at Thomas Embling Hospital. These nurses
provide leadership and management in their specific areas
and contribute to service development, education and
research at an organisational level. Consistently meeting the
competing demands of their positions demonstrates that
Forensicare has been fortunate to recruit an outstanding
group of nurse middle managers.
Organisational appreciation
Every year a steady stream of nurses from Victoria,
interstate and overseas visit Forensicare. The most
consistent feedback describes the nurses as friendly, open,
competent and helpful. Nurses appreciate the opportunities
at Forensicare, and while often understated, Forensicare
appreciates the contribution of nursing.
Trish Martin
Director of Nursing Practice
Clinical nurses
Clinical nurses at the Melbourne Assessment Prison, our
Community program and Thomas Embling Hospital provide
assessment and care of patients who are challenging, have
complex needs and are at high risk of many behaviours of
concern. Forensicare nurses continue to provide proficient
care to patients and their carers, while demonstrating
commitment, motivation and satisfaction with their work.
The contribution of clinical nurses to student teaching and
support, our sound level of nursing recruitment and retention,
and to Forensicare’s reputation for clinical services cannot be
underestimated.
17

Inpatient Services
18
Strategic objectives
• Provide specialist forensic mental health inpatient
treatment and care to people with a serious mental
disorder in the criminal justice system and those
patients at risk of behaving violently.
• Provide high quality clinical services that meet
regulations, legislative and security requirements.
• Provide liaison and consultative services to public
mental health services and other agencies in relation to
treatment of mentally disordered clients with significant
forensic issues.
Challenges
• Minimising the impact within the organisation of the
international shortage of specialised forensic mental
health clinicians.
• Maintaining the provision of high level services to the
criminal justice system in the face of mounting demand
for care and treatment.
• Ensuring that technology, security and associated
building infrastructure at the Thomas Embling Hospital
remains of the highest calibre.
How we plan to succeed in 2006-2007
Consolidating and Strengthening Clinical Programs –
• Continue to develop and implement clinical programs
and systems to address patient management
requirements in dual diagnosis and offending behaviour,
as part of the ongoing Consolidating and Strengthening
Clinical Programs project.
• Continue to evaluate the implementation process,
clinical program reform and the outcomes of the new
clinical programs and systems developed to address
management requirements and co-occurring disorders
and offending behaviour.
Security –
• Subject to funding by the Department of Human
Services, implement the findings of the review of
security and associated infrastructure undertaken
in 2005-2006.
• Implement new security maintenance tender
arrangements.
Subject to funding, establish a Campus Program Coordinator
position to develop and implement a whole-ofhospital
approach to therapeutic, vocational, recreational
and educational programs.
Review the Consumer and Carer Participation Plans and
develop a five year strategic plan for consumer and carer
participation.
Provide support and programs to specialist patient
populations that include –
• aged
• adolescents
• culturally diverse
• women
PROFILE
• Thomas Embling Hospital - a 100-bed secure hospital
for patients from the criminal justice system who are
in need of psychiatric assessment and/or care and
treatment for patients from the public mental health
system who require specialised management.
• Specialist prison mental health services at Melbourne
Assessment Prison, and sessional psychiatric
consultations at the larger regional prisons operated
by Corrections Victoria.
• Services provided at Melbourne Assessment Prison
include a 16-bed Acute Assessment Unit (for
assessment of prisoners thought to be mentally ill
and/or at risk), reception assessment program,
outpatient services and after-hours crisis intervention.
KEY OUTCOMES
FUNDING TO INCREASE CAPACITY
OF THOMAS EMBLING HOSPITAL
Pressure on beds at Thomas Embling Hospital continued
to increase during the year, despite measures introduced to
ensure prisoners certified for admission wait no longer than
72 hours for a bed at the hospital. Critically elevated levels
of patient acuity at Thomas Embling Hospital were the most
overt symptom of the underlying system capacity shortfalls.
Pressures from within prisons, from courts and from area
mental health services showed no sign of remitting.
Council proposed an interim service capacity increase
of 18 beds to the Department of Human Services, and we
worked closely with the Department to further develop the
proposal. The proposal for an interim expansion of bed
capacity was approved and funding for this program was
announced by the Minister for Health in May 2006. Subject
to receiving the requisite planning approvals, it is anticipated
that the new 18-bed inpatient unit will be commissioned
early in 2007.
CONSOLIDATING AND
STRENGTHENING CLINICAL
PROGRAMS
New clinical programs and systems to address patient
treatment requirements in the areas of dual diagnosis and
offending behaviour continued to be developed and
implemented as part of the Consolidating and Strengthening
Clinical Programs initiative. The Implementation Working
Group met fortnightly throughout 2005-2006 to oversee the
development and implementation of the initiative across the
organisation. Outcomes in 2005-2006 include –
Training
A total of 1,295 training hours on aspects of the
Consolidating and Strengthening Clinical Programs initiative
was provided to clinical staff in 2005-2006.
The training provided included –
Violence Risk Scale –
Additional training was provided to twelve selected staff
on the use of the Violence Risk Scale. This training will be

incorporated in the further development of assessment
tools across the organisation. Three staff undertook ‘Trainthe-Trainer’
sessions on the Violence Risk Scale, and will be
utilised in ongoing staff training.
Therapeutic approaches to offending and dual
diagnosis –
Clinical staff undertook further mandatory training on
therapeutic approaches to offending and dual diagnosis
during the year. In addition, a range of seminars was
conducted by Professors Paul Mullen and James Ogloff
on offending issues and risk assessment and management.
The last mandatory training module on therapeutic
programs was developed and will be delivered later in 2006.
The complete training program has been revised and is now
available to all new staff on their commencement with
Forensicare.
Evaluation
Evaluation measures were developed and the program
evaluation commenced in 2005-2006. Evaluation will
continue during 2006-2007, and will be ongoing thereafter.
Dr Stuart Thomas (Centre for Forensic Behavioural Science,
Monash University and Forensicare) joined the Implementation
Committee to provide assistance with the development of the
overall program evaluation. The evaluation will consider –
• pre and post participation measures
• staff attitude/knowledge/skills
• patient attitudes
• audits - patient clinical file and individual service plans
• changes to clinical culture in relation to Consolidating
and Strengthening Clinical Programs initiative.
Programs
Therapeutic programs have been developed and
implemented within Thomas Embling Hospital. The
programs incorporate campus wide, unit based and gender
specific groups and programs. The group programs that
were provided in 2005-2006 include –
VOCATIONAL REHABILITATION
PROGRAM
A working group, chaired by the Senior Occupational
Therapist, was established in May 2006 to lead the
development of the Vocational Rehabilitation Program.
The program was developed following a comprehensive
literature review and identification of a suitable vocational
model for patients residing within a secure environment.
The Vocational Rehabilitation Program aims to enable
patients to develop a career pathway, create and implement
a personalised vocational plan, acquire a repertoire of work
related skills and abilities and for some to be assisted to
engage in suitable employment. The program was initially
provided for patients within the Continuing Care program,
but has subsequently been extended to incorporate all units
within the hospital.
Although the formal program is in its infancy there have
been positive outcomes. Nine patients are undertaking
paid part time employment, and one patient is participating
in voluntary work, in preparation for paid employment.
SERVICE CONTRACTS
New contracts were established during the year for the
provision of security, catering, cleaning, pathology and
pharmacy in Thomas Embling Hospital. Measurable
performance indicators have been implemented and are
being regularly monitored. The new contracted service
arrangements have enabled the following service
enhancements to be achieved –
• improved and environmentally friendly utilisation
of cleaning products
• expansion of the operating hours and scope of the
hospital kiosk.
The on-line provision of pathology results is also being
considered for implementation in 2006-2007.
The recreation service contract was re-tendered during
the year, and the YMCA was reappointed. Consumer input
was obtained to redevelop the Recreation Services tender
specifications in line with consumer requirements.
Drug and Alcohol (Igniter)
Assertiveness
Coping Better
Keeping Calm
Problem Solving
Conversational Skills
Contemplation (drug and alcohol)
Action (drug and alcohol)
6 sessions per group x 3 groups
12 sessions per group x 4 groups
16 sessions per group x 3 groups;
1 group run on a continuous basis
6 sessions per group x 4 groups
8 sessions per group x 3 groups
20 sessions per group x 2 groups
8 sessions per group x 2 groups
12 sessions per group x 1 group
JUVENILE JUSTICE
Forensicare continued to provide a fortnightly consultant
psychiatrist services to the Department of Human Services
Juvenile Justice program. In seeking to build new specialist
capability for this group of adolescent and young adult
offenders, Forensicare is supporting the specialist training
in forensic psychiatry (through our program) and child and
adolescent psychiatry (through the Austin Hospital training
program) of the Forensicare psychiatrist who provides the
service to Malmsbury. On completion of training, this
psychiatrist will be Victoria’s only specialist forensic child
and adolescent psychiatrist. Forensicare will consider
creating an ongoing advanced trainee position in the near
future to consolidate and provide ongoing capability
development in this specialist area of clinical expertise
with young offenders.
19

CAMPUS PROGRAM CO-ORDINATION
The Campus Program Co-ordination project commenced as
a 12 month pilot program in April 2006. Working to facilitate
the provision of patient programs across Thomas Embling
Hospital, the project has been established to provide –
• an outline of recently provided programs, their relevance
and strategies for improvement
• a centralised process for accessing key information
about all campus run programs to facilitate access
to programs in other units
• centralised access to program resources (outlines,
notes and other equipment required)
• a register of skilled and interested staff members
available to facilitate or assist programs.
PRISON MENTAL HEALTH
SERVICES
Forensicare is contracted by Corrections Victoria to provide
the forensic mental health service to prisoners at the
Melbourne Assessment Prison (the state reception prison),
and monthly consultant psychiatrist sessions at Ararat,
Loddon, Tarrengower and Barwon prisons. Consultant
psychiatrists and psychiatric registrars also provide twice
weekly sessions to women prisoners at Dame Phyllis Frost
Centre. Corrections Victoria engaged Forensicare during
the year to double service levels at Barwon Prison and to
provide mental health care at the two newly commissioned
prisons, Marngoneet and Metropolitan Remand Centre.
SERVICE ENHANCEMENT PROPOSAL
Forensicare lodged a detailed submission with the
Department of Justice in late 2005 to expand mental health
services at Melbourne Assessment Prison. The proposal
included the development of a 30-bed sub-acute stepdown
unit, together with the establishment of a multidisciplinary
clinical team to treat and support this prisoner
group. A decision on the submission has not been reached,
and we will continue to advocate for the expansion of
mental health services within the prison system to meet the
increasing demand for services from mentally ill prisoners.
MELBOURNE ASSESSMENT PRISON
The mental health services at Melbourne Assessment
Prison consist of a 16-bed Acute Assessment Unit, in which
initial assessment and treatment is provided to seriously
mentally ill male prisoners, together with an outpatient
service and a reception assessment service (a mental health
assessment is undertaken on every prisoner received into
custody at the prison). Forensicare has a multidisciplinary
staffing profile at the prison that includes psychiatrists,
psychiatric registrars, registered psychiatric nurses, an
occupational therapist, social welfare worker, psychologist
and medical records staff.
Key outcomes for Forensicare’s prison mental health service
based at Melbourne Assessment Prison in 2005-2006 –
• All performance measures were exceeded during the
year, with minimal additional resources (1 psychiatric
registrar session per week).
• Service demands continued to increase throughout the
year. In particular –
• The high level of acuity of prisoners with a mental
illness remaining at Melbourne Assessment Prison
continued, due primarily to the limited bed availability
at Thomas Embling Hospital. Of a capacity of 276
prisoners, there was an average over the year of
100 prisoners who were unable to be moved from
the prison for mental health reasons.
• The number of prisoners referred for psychiatric
assessment and care increased to 5,782 prisoners
(from 5,661 in 2004-2005), and the number of
prisoners assessed on reception to prison increased
to 4,396 (from 3,886 in 2004-2005)
• A 12-week program on medication compliance, mental
health issues and living skills was developed by the
occupational therapist and a psychiatric nurse. This
was run as a pilot program for prisoners in the unit that
provides step-down support for prisoners leaving the
Acute Assessment Unit. Evaluation of the program has
been used as the basis for ongoing provision, which will
be subject to funding by Corrections Victoria.
• Three training sessions were provided to correctional
staff during the year on working with people with a
mental illness, and a one-day workshop for correctional
staff working in units with prisoners with a mental illness.
• A close collaborative arrangement was established
with the Community Integration Program, a program
provided by the Community Forensic Mental Health
Service, providing assistance to prisoners with a mental
illness due for release from prison.
• Discussions commenced and are ongoing with mental
health staff at Melbourne Health (Royal Melbourne
Hospital) on developing a service to provide immediate
community care to people with a mental illness granted
bail by the courts.
20

HOW WE MEASURED OUR INPATIENT PERFORMANCE
Our Performance Measures are established annually by the Department of Human Services and can therefore vary from
year to year. In 2004-2005 the Department of Human Services amended our performance measures – comparative annual
data is only shown for measures that remained unchanged from 2002-2003.
Performance Measures Required by Department of Human Services
Performance Measures Performance Target Outcomes Outcomes Outcomes Outcomes % Change
2005-2006 2004-2005 2003-2004 2002-2003 2003-04 –
2005-06
28 day readmission rate 2% 1.52% 3% 1.4% 1.4% 8.6%
Number of inpatient episodes Target not required 122 completed n/a n/a n/a -
Average length of acute inpatient stay Target not required 80 days n/a n/a n/a -
Inpatient episodes with outcome assessments completed Target not required 885 n/a n/a n/a -
Supplementary Performance Measures
Performance Measures Performance Target Outcomes Outcomes Outcomes Outcomes % Change
2005-2006 2004-2005 2003-2004 2002-2003 2003-04 –
2005-06
Bed Occupancy Rate 98% 98.8% 99.12% 99.4% 97.2% 0.6%
Percentage of patients who have a physical examination completed
within 48 hours of admission 95% 100% 100% 100% 100% n/c
Number of admissions 176 131 146 149 142 12.1%
Number of individual patients Target not required 124 139 130 131 4.6%
Number of assessments performed for other agencies,
including public mental health services 10 8 11* 25 16 68%
Number of psychiatric and psychological reports prepared for Victorian courts 76 63* 109 111 120 47.5%
Number of escapes from Thomas Embling Hospital 0 0 0 0 0 n/a
Number of patient absconds from a leave 0 1 1 n/a n/a n/a
Percentage of patient leave episodes involving a patient absconding 0% 0.015%+ 0.02%+ 0% 0% 0.015%
Number of category one incidents (other than patient absconding) Target not required 5 1 4 4 25%
Proportion of direct care staff undertaking aggression management
training within 6 weeks of commencement 100% 98.9% 99.26% 99% 99% 0.1%
* Community Forensic Mental Health Services have assumed responsibility for providing assessments for public mental health services.
+ This represents one patient leave episode involving an abscond.
21

THOMAS EMBLING HOSPITAL PROFILE
2005-2006 2004-2005 2003-2004 2002-2003 % Change
(100 beds) (100 beds) (100 beds) (100 beds) 2003-04
– 2005-06
AVERAGE OCCUPANCY RATE
Acute Program (men) – Argyle, Atherton 99.58% 99.28% 99.4% 97.2% 0.2%
Acute Program (women) – Barossa 99.51% 97.18% 97.9% 93.9% 1.6%
Continuing Care Program – Canning, Bass 99.98% 99.93% 99.9% 96.8% 0.1%
Intensive Rehabilitation Program – Daintree 99.9% 99.79% 100% 96.9% 0.1%
LEGAL STATUS ON ADMISSION
Security Patients
Mental Health Act, s.16(3)(b) – Restricted Hospital Order (transferred from prison) 92% 78% 81.5% 74.5% 12.9%
Sentencing Act, s.93(1)(e) – Hospital Security Order (transferred from court) - 0.7% 4% 7.5% 100%
Forensic Patients
Crimes (Mental Impairment and Unfitness to be Tried) Act 4% 8.3% 9% 6% 55.6%
Involuntary Patients
Mental Health Act, s.12 – Involuntary Patients (transferred from other hospitals) 3% 13% 4.5% 9% 33.3%
Sentencing Act, s.93(1)(d) – Hospital Order (transferred from court) - - 1% 2% 100%
SNAPSHOT OF TOTAL PATIENT POPULATION
30 June 2006 30 June 2005 30 June 2004 30 June 2003 % Change
(100 patients) (100 patients) (100 patients) (100 patients) June 2004-
June 2006
PATIENT DIAGNOSIS
Schizophrenia 92% 92% 62% 66% 48.4%
Affective disorders 5% 6% 13% 18% 61.5%
Adjustment disorders - - 4% 1% 100%
Brief psychotic episode - - 9% 2% 100%
Personality disorder 1% 1% 3% 5% 66.7%
Other 3% - 9% 8% 66.7%
LEGAL STATUS
Security Patients
Mental Health Act, s.16(3)(b) – Restricted Hospital Order (transferred from prison) 30+ 36+ 43+ 44+ 30.2%
Forensic Patients
Crimes (Mental Impairment and Unfitness to be Tried) Act 60 52* 49 44 22.4%
Involuntary Patients
Mental Health Act, s.12 – Involuntary Patients (transferred from other hospitals) 3 5 4 3 25.0%
Other
Sentencing Act, s.93(1)(d), Hospital Order; and s.93(1)(e), Hospital Security Order.
(transferred from court) 7 6 4 9 75.0%
+ Includes multiple patients on track for a mental impairment outcome.
* Includes 1 patient who was returned to Thomas Embling Hospital following suspension of Extended Leave.
22

HOW WE MEASURED OUR PERFORMANCE AT MELBOURNE ASSESSMENT
PRISON
Service delivery outcomes for services provided at Melbourne Assessment Prison are detailed in the contract between
Victorian Institute of Forensic Mental Health and Department of Justice. The performance measures listed here show
service delivery information maintained by Forensicare.
Performance Measure Outcomes Outcomes Outcomes Outcomes % Change
2005-2006 2004-2005 2003-2004 2002-2003 2003-04 –
2005-06
Melbourne Assessment Prison
Number of services provided–
• reception assessments 4,396 3,886 3,568 3,885+ 23.2%
• psychiatric referrals 5,782 5,661 4,689 4,225+ 23.3%
• psychiatric and psychological reports prepared for court 205 199 190 197 7.9%
Acute Assessment Unit – bed occupancy rate 98.46%* 97.45%* 97%* 93.6%* 1.5%
January –
June 2003
Average no. of days between certification and transfer to Thomas Embling Hospital 7.6** 8** 24 15.9 68.3%**
Average number of prisoners waiting for admission to Acute Assessment Unit 8.8 7.5 5 5 76%
+ Due to a problem experienced with an external computer system, this information covers actual data collected for the period 1 October 2002 – 30 June 2003. The data for the
months of July – September 2002 is an average of the nine-month period for which data is available.
* The bed occupancy rate at the Acute Assessment Unit reflects a lower-than experienced rate. Occupancy rates at the Melbourne Assessment Unit are based on actual bed
vacancies at midnight each day. If a prisoner is discharged from the Acute Assessment Unit late in the afternoon, and a replacement prisoner not transferred in to the Unit until the
following morning, the bed is shown as a vacancy in prison records. Records maintained by Forensicare indicate an almost 100% occupancy rate.
** This decrease is the result of a change in policy by Forensicare regarding admission practices to Thomas Embling Hospital whereby prisoners are admitted to the hospital within
72 hours post-certification.
23

Community Forensic Mental Health Service
Strategic objectives
• Provide specialist community forensic mental health
services to people with a serious mental disorder
in the criminal justice system and people at high risk
of behaving violently.
• Provide multi-disciplinary assessment and treatment
and management of people with a range of problem
behaviours that are, or might become, associated with
offending.
• Provide specialist assessment and treatment for sexual
offenders who have committed serious sexual offences
and pose a high risk to the community.
• Provide an intensive transitional support service to assist
mentally disordered offenders exiting Thomas Embling
Hospital to gain skills for independent community living.
• Provide expert assessment and advice to courts,
corrections, releasing authorities and general mental
health services in relation to the early detection,
assessment, treatment and risk management of
mentally disordered offenders and potential offenders.
• Provide liaison and consultative services and short-term
case management of clients of public mental health
services and other agencies in relation to the treatment
of mentally disordered clients with significant forensic
issues.
Challenges
• To work with area mental health services, community
support services and justice agencies to enhance their
response to mentally ill repeat offenders.
• To stay abreast of developments in risk assessment
technologies and adopt best practice in identifying
and managing the risks our clients pose.
• To continue to embed the learning from the
Consolidating and Strengthening Clinical Practice
training in clinical practice across the community
programs.
• To stay abreast of developments in the treatment
of various problem behaviours through research
and evaluation of treatment models.
How we plan to succeed in 2006-2007
• Subject to funding, develop and implement an intensive
outreach program to replace the existing transitional
accommodation program (pending the closure of the
existing program due to the planned expansion of
inpatient bed capacity at Thomas Embling Hospital).
• Continue to identify and develop strategies for
implementing Consolidating and Strengthening Clinical
Programs initiatives in the Problem Behaviour Program
and the Mental Health Program.
• Review the Community Integration Program with a view
to further developing effective post release planning for
prisoners with a serious mental illness.
• Together with the Department of Human Services,
provide comprehensive training in relation to the
administration of the Department’s protocols for the
statewide management and treatment of people on
Non-Custodial Supervision Orders.
• Continue the development of a statewide service
for victims of crime, particularly victims of offences
committed by people with a mental illness, victims with
a serious mental illness, victims of stalking and victims
of serious crime.
• Develop a five year strategic plan for Consumer and
Carer Participation, incorporating the involvement of
consumers and carers in service planning, development
and delivery.
• Complete the implementation of the Forensic Risk
Assessment Management Exercise (which focuses
on risk assessment and individual service plans) across
all community programs.
• Subject to funding from the Department of Justice,
provide specialist treatment to individuals with mental
health and problem behaviours diverted by the courts
through Court Integrated Services, a new diversion
initiative of the Attorney-General.
• Work with the Department of Justice to develop and,
subject to funding, implement a voluntary treatment
program for those in the community at greatest risk
of becoming sex offenders.
24

PROFILE
• A statewide service providing assessment and
multidisciplinary treatment services to high risk clients
referred from correctional providers, police, courts,
the Adult Parole Board, the Thomas Embling Hospital,
the Acute Assessment Unit at Melbourne Assessment
Prison, the Psycho Social Unit at Port Phillip Prison,
mainstream mental health services, private psychiatrists
and general practitioners.
• Programs provided –
• Community Forensic Mental Health
• Problem Behaviour
• Transitional Accommodation
• Court Services
• Community Integration
KEY OUTCOMES
COURT LIAISON PROGRAM
A steering committee was established to progress the
implementation of the recommendations relating to
Forensicare’s Court Liaison Program that were included
in the review of the statewide mental health court liaison
services. A framework document was completed and
following industrial negotiations the eligibility for court liaison
positions has been broadened to include allied health staff.
Revised program guidelines are now operational and regular
staff development forums for court liaison staff have been
established, with a supervision program led by the Assistant
Clinical Director.
TRANSITIONAL ACCOMMODATION
PROGRAM
A 12 month review of the Transitional Accommodation
Program was undertaken. The review incorporated resident
focus groups and interviews with relevant stakeholders. The
review indicated that the program successfully met its aims
of providing short term supported accommodation to allow
patients of Thomas Embling Hospital to access overnight
leave arrangements at an earlier stage than would otherwise
have been granted.
Implementation of the review recommendations has ceased,
with the imminent closure of the Transitional Accommodation
Program (due to the planned expansion of inpatient bed
capacity at Thomas Embling Hospital). Development of an
alternative intensive outreach service model is underway
to ensure this client group continues to receive support to
assist them to succeed in the transition into the community.
MENTALLY ILL PRISONERS – RELEASE
PLANNING
Funding was received from the Department of Human
Services to establish a post-release integration program to
assist prisoners with serious mental illness transition from
prison into the community. A steering committee was
established to oversee the establishment of the program,
known as the Community Integration Program, and
a forum for stakeholders was held in September 2005.
The funding enabled the position of Community Integration
Co-ordinator to be filled and the program commenced
operating in January 2006.
Referrals to the Community Integration Program have been
received from the Melbourne Assessment Prison and Port
Phillip Prison, and in the first six months of operations
linkages for 26 clients were made across a number of
area mental health services, including Mildura.
A six month review of the program confirmed that the
program is now operating at capacity and has been a
critical resource in establishing community linkages for
mentally ill offenders. A 12-month review of the program
will be conducted in early 2007.
NON-CUSTODIAL SUPERVISION
ORDERS
The existing data on Non Custodial Supervision Orders was
successfully transferred to the new reporting system and
the new system is now fully operational. Guidelines and
processes regarding the updating of the data have been
implemented, together with quality assurance processes.
Updated reports from the new data system have been
produced and circulated to assist in the clinical and
administrative management of these orders. Work on the
development of a statewide policy has continued, and a
dedicated sessional consultant psychiatrist recruited to
oversee the management of Non-Custodial Supervision
Order patients and refinement of procedures for liaison
with area mental health services.
VICTIMS OF CRIME
A senior clinician has been appointed to develop the
Victims Assessment Service. At the invitation of the Director
of the Victim Support Agency (VSA), an outline of
Forensicare’s proposed fee-for-service specialist Victim
Assessment Service was published in the VSA newsletter
and the co-ordinator attended a regional provider forum.
This is an important strategic initiative for Forensicare, and
ongoing high level liaison with VSA is expected to result in
assistance and advice being provided on workforce training
and specialist assessment.
PROBLEM BEHAVIOUR PROGRAM
Staff from the Problem Behaviour Program undertook
training in the use of Structured Forensic Risk Assessment
Tools. These tools provide an assessment of the level of risk
and inform individual treatment plans for clients with sexual
offending and violent behaviours. This structured forensic
risk assessment is now being implemented within the
program.
During 2005-2006, 242 people were referred to the
Problem Behaviour Program from general mental health
services, correctional agencies, courts, general practitioners
and various human services agencies.
25

HOW WE MEASURED OUR COMMUNITY PERFORMANCE IN 2005-2006
Performance Measures Required by the Department of Human Services
The Department of Human Services introduced a suite of new performance measures for the Community Forensic Mental
Health Services in 2005-2006. Comparative data is therefore unable to be shown.
Performance Measures Performance Target Outcomes 2005-2006
Number of community treatment episodes (at least one treatment episode during a 3 month period) Target not required 1,778
Number of treatment days provided in three month period Target not required 7,767
Number of secondary consultations provided Target not required 341
Community treatment episodes (longer than two treatment days in three month period)
with outcome assessments completed Target not required 150
Supplementary Performance Measures
Performance Measures Performance Outcomes Outcomes Outcomes Outcomes % Change
Target 2005-2006 2004-2005 2003-2004 2002-2003 2003-2004
-2005-06
Number of continuing clients 200 320 302 241 285 33%
Percentage of Individual Service/Treatment Plans
commenced within 6 weeks of registration 100% 100% 100% n/a n/a n/a
Percentage of section 41(1) reports provided to the court
within the specified time period 100% 100% n/a n/a n/a n/a
Number of new registered clients 150 607 403 234* 166 159%
Number of client separations 150 575 351 321* 162 79%
Number of assessments performed for public
mental health services 50 189 215 191+ 138 1%
Number of assessments performed for other agencies 40 152 100 130 111 17%
Number of psychiatric and psychological reports prepared
for Victorian courts 240 303 328 355 372 15%
Percentage of Non Custodial Supervision Orders
supervised where treatment is not provided by Forensicare 100% 100% n/a n/a n/a n/a
Number of category one incidents Target not required 0 1 0 0 n/a
Transitional Accommodation Program
Admissions -
Number of clients on overnight leave Targets not required 8 10 n/a n/a n/a
Number of clients on extended leave 2 2 n/a n/a n/a
* The system for recording new clients was amended during the year, and a category of previously unregistered clients were registered.
+ Community Forensic Mental Health Service assumed responsibility for providing assessments for public mental health services. This measure includes all assessments provided
from the date of transfer of responsibility.
26

PROFILE OF OUR COMMUNITY CLIENTS
A census of all current clients of the Community Forensic Mental Health Service has been conducted on 30 June since
2004. The information covered in the census has expanded since it was first conducted and has enabled us to compile a
profile of our clients to assist our planning and continued development of community programs. Comparative data is shown
for all available categories, although the percentage change is less meaningful for the smaller categories. A full breakdown
of the census data from the Community Forensic Mental Health Service is available on request (tel: 9356 8500) or on our
website, www.forensicare.vic.gov.au
30 June 2006 30 June 2005 30 June 2004 % Change
June 2004
– June 2006
Number of clients 154 195 182 17%
CLIENT DIAGNOSIS
Psychosis 43% 33% 28% 54%
Personality disorder 19% 23% 12% 58%
Paraphilias 23% 19% 27% 15%
Affective disorders 12% 15% 12% n/c
Anxiety disorder 1% 8% 2% 50%
Intellectual disability 0% 0% 16%* n/a
Other 2% 2% 3% 33%
PRIMARY OFFENCE
Sexual offence/s 22% 27% 36% 39%
Assault 12% 22% 13% 8%
Homicide 20% 20% 24% 17%
Attempted murder 6% 0 0 n/a
Stalking 7% 10% 6% 17%
Theft 4% 9% 2% 100%
Arson 3% 8% 3% n/c
Threats 1% 3% 3% 67%
Other 9% 1% 2% 350%
Nil 16% 0 11% 45%
* The program provided specifically for clients with an intellectual disability and a mental illness ceased to operate as an independent program in 2004.
27

28
Professional Education and Research

Professional Education
Strategic objectives
• Provide professional education and training to
Forensicare staff to further enhance their specialist skills,
expertise and knowledge.
• Continue to develop a learning environment for
Forensicare staff to promote critical thinking and
innovation.
• Enhance the responsiveness of teaching institutions,
service providers and agencies to the needs of forensic
mental health patients and clients.
• Promote and develop the specialist skills and
knowledge of practitioners and professionals
in the forensic mental health area.
Challenges
• Make education and training opportunities for staff at
Forensicare and area mental health services accessible
and relevant.
• Establish a learning culture that values education and
training as a core element of professional practice and
accountability.
How we plan to succeed in 2006-2007
• Provide specialised training to area mental health
services and other services, including participation
in NEVIL training activities.
• Ensure evidenced-based education on forensic mental
health issues is provided for staff.
• Provide enhanced support and encouragement for
Forensicare clinical staff to undertake tertiary study
in the Graduate Certificate and Graduate Diploma
in Forensic Behavioural Science.
PROFILE
The Professional Education program –
• Operates to identify and facilitate best practice within
Forensicare, promote knowledge and expertise in
forensic mental health and enhance responsiveness
to the needs of mental health clients who are offenders
and/or present with challenging behaviours.
• Provides professional education and training on forensic
mental health issues to Forensicare staff, area mental
health services, other relevant practitioners and teaching
institutions.
• Incorporates activities appropriate to all disciplines
within Forensicare.
KEY OUTCOMES
STAFF INSERVICE AND
PROFESSIONAL EDUCATION
Forensicare has a formal Professional Education Program
that provides all staff with weekly inservice and continuing
education opportunities throughout the year. Emphasis
is placed on ensuring that staff have access to ongoing
professional education in areas that are of direct relevance
to forensic mental health.
The program provides education sessions at Thomas
Embling Hospital, the Community Forensic Mental Health
Service and the Melbourne Assessment Prison. Topics
presented cover both forensic-specific and general mental
health issues, and includes internal and external presenters.
Details of the Professional Education Program are available
to all staff in printed form and via the Forensicare intra-net.
During the year a total of 5,617 clinical staff training hours
was provided in the Professional Education Program, or
22.03 training hours per staff member (effective full-time
staff member). This training consisted of –
• Consolidating and Strengthening Clinical Programs
(CSCP) – 1,295 training hours were provided to staff
on offending issues and dual diagnosis as part of the
CSCP project. This training will continue during the
coming year. In 2004-2005, the year that CSCP was
introduced, a total of 3,776.5 staff training hours was
provided as a component of the initiative.
• A total of 4,321 staff training hours (an increase from
the total of 3,993.5 hours provided in 2004-2005) was
provided through the inservice professional education
program. These sessions presented included legal
issues, Mental State Examination, Working with
Families, Pharmacology Management of Aggression,
Interview Skills and Clinical Supervision.
29

ORIENTATION
Forensicare has a comprehensive day and a half Orientation
Program that provides all staff (including agency, bank and
contracted staff) with the information necessary to work
within our specialised environment. During 2005-2006, five
Orientation Programs were held which were followed by
a comprehensive orientation to the unit in which the staff
member was allocated.
TRAINING FOR OTHER AGENCIES
Area Mental Health Services
Forensicare continues to work closely with area mental
health services and provides a range of specialised training
on forensic issues as requested. During 2005-2006,
24 training sessions were provided specifically for area
mental health services clinicians. The training sessions
were provided for both metropolitan and rural services,
and included one-day seminars and workshops and 2 hour
presentations.
A one day conference specifically designed for mental
health nurses working in area mental health services was
developed and presented in March 2006 by Forensicare
nursing staff. The conference, ‘Nursing Patients with
Offending Issues’, was attended by 57 area mental
health staff, primarily from nursing, but also allied health
disciplines. Other workshops provided included risk
assessment and working with patients who offend.
North East Victoria into Learning (NEVIL)
Cluster Group
Established by the Department of Human Services
in 2005 as one of three statewide training groups,
Forensicare is a member of the North East Victoria Into
Learning (NEVIL) cluster, together with Austin Health,
Eastern Health, Goulburn Valley Health, North East Hume
and St Vincent’s. The statewide groups were established
to bring together community, adult and aged agencies in
specific regions to provide a range of learning initiatives for
staff that utilised shared expertise. Involvement in the cluster
group has provided Forensicare staff with access to a broad
range of training opportunities, including a 2-day workshop
on suicide prevention training, and seminars on borderline
personality disorders and family sensitive practice.
In 2005-2006 Forensicare provided the following for NEVIL
cluster members –
• a 1-day workshop on risk assessment and management
• hosted a 1-day planning day
• two x 1-day workshops (one metropolitan and one rural
- Benalla) on working with complex clients with forensic
issues
• A half day workshop (rural - Wangaratta) on working
with complex clients with forensic issues.
No. of students
Training and Support Provided to External
Agencies
Forensicare has an active education and training program
that focuses on enhancing knowledge and skills of forensic
mental health issues. During the past year we provided 23
sessions to external agencies (in 2004-2005, 30 sessions
were provided). These sessions included training for court
staff on working with offenders with a mental illness and a
presentation to staff from the Office of Health Commissioner
on ‘threateners’. Staff delivered 97 formal presentations and
papers to professional forums (109 papers were presented
in 2004-2005). The decrease in formal presentations reflects
the high number of staff presentations at the 5th Annual
International Association of Forensic Mental Health Conference,
held in Melbourne in the previous reporting period.
CLINICAL PLACEMENTS
Forensicare has a strong commitment to providing clinical
student placements across the organisation. In addition
to being a major platform of our recruitment policy, it is
an important component of our professional education
program. Student placements in all disciplines within
Forensicare continue to be highly sought, and we have
established formal affiliations with the tertiary institutions
providing clinical courses.
To clarify responsibilities from an insurance and liability
perspective we introduced formal contract agreements with
tertiary institutions for student placements in 2005-2006.
This is consistent with the practice adopted by other public
sector health agencies.
During 2005-2006, 218 student placements were provided
across the organisation in all clinical disciplines – social
work, occupational therapy, psychology, nursing and
psychiatry.
Clinical Student Placements
240
235
230
225
220
215
210
205
200
01/02 02/03 03/04 04/05 05/06
The number of placements provided has decreased since 2002-2003, when the practice
of having 5th year medical students on placement at Forensicare was discontinued due
to new learning requirements introduced by the two teaching universities.
30

GRADUATE AND POSTGRADUATE
NURSE PROGRAM
The Graduate Nurse Program was offered by Forensicare
in 2005-2006.This is a one year program that incorporates
4 academic subjects. If successfully completed, participants
can undertake a second postgraduate year,where a further
4 academic subjects lead to a Postgraduate Diploma in
Mental Health Nursing and psychiatric endorsement with
the Nurses Board of Victoria. Co-ordinated by the Clinical
Nurse Educator, the program had 9 graduate nurse
participants in 2005-2006. A Postgraduate Nurse Program
was also offered, and had 1 participant.
OCCUPATIONAL THERAPY
Dr Louise Farnworth (Head, Occupational Therapy, Monash
University) was engaged on a part-time basis to provide
specific professional development, support and guidance
to the Occupational Therapy Service within Forensicare in
2005-2006. Dr Farnworth focussed on providing direction
to the occupational therapists on the application of current
evidence-based practice, together with specialised input at
their bi-monthly research meetings. This specific professional
development for occupational therapists has resulted in the
commencement of three broad ranging research studies,
which will be completed during the coming year.
EDUCATIONAL AFFILIATIONS
Forensicare has formally established affiliations with Monash
University and The University of Melbourne. Additional
affiliations have also been developed through student
placements with Deakin University, RMIT University, Victoria
University of Technology, Australian Catholic University,
University of South Australia and Charles Sturt University.
MAJOR PRESENTATIONS IN 2005-2006
Professor Paul Mullen
Director of Clinical Services
International
21 22 July 2005, Johor Mental Health Convention, Johor
Bahru, Malaysia
Presentation on ‘Assessing the Risk of Violent Behaviour
in the Mentally Disordered’ and Plenary session on ‘Mental
Disorder and Criminal Offending: The Myths and the
Realities’
5 September 2005, St Georges Academic Meeting,
London, UK
Presentation on ‘Querulant and Vexatious Litigants’
5 - 6 September 2005, Institute of Psychiatry Conference -
‘Phenomenology and Psychiatry’, London, UK
Presentations on ‘The Phenomenology of the Querulous
Complainant’ and ‘History of Phenomenology’
12 - 13 September 2005, North London Forensic Service,
8th International Conference, London, UK
Presentation on ‘Fear Psychiatry and the State’
21-25 September 2005, Irish Medical Society, Dublin
Presentation on ‘Querulous Complainers’
28 – 30 September 2005, British Home Office Conference -
Management and Treatment of Dangerous Offenders, York, UK
Presentation on ‘The Australian Experience with Dangerous
Offenders: Problem Behaviour Clinic’, and Closing Keynote
Address on ‘Where we are, what we know and the
challenges facing us in the future’
15-19 October 2005, Medico Legal Society, New Zealand
Daily presentations to Medico Legal Society groups
10 February 2006, New Zealand Bioethics Conference,
‘Making People Better’, Dunedin, New Zealand
Presentation on ‘Hate in the Age of Terrorism’
8 March 2006, NZ Early Intervention in Psychosis Training
Forum, Christchurch, New Zealand
Keynote address on ‘Understanding and Preventing
Violence in the Schizophrenias’
National
5 July 2005, Clinical Presentation, Melbourne
Presentation on ‘Stalkers and their Victims’
7 July 2005, Clinical Presentation, Bendigo, Victoria
Presentation on ‘Disorders of Passion: Jealousy and
Violence’
12 July 2005, Afternoon Presentation to Consultants
and Registrars, Graylands Hospital, Perth
Presentation on ‘Pathologies of Love’
12 July 2005, Presentation to Private Hospital Consultants,
Graylands Hospital, Perth
Presentation on ‘Stalkers and their Victims’
16 July 2005, Clinical Presentation, Melbourne
Presentation on ‘Reducing the Risk of Violence in those
with Schizophrenia’
26 July 2005, Sunshine Hospital – Mental Health Education
Centre, Melbourne
Presentation on ‘Developing Mental Health Services for
Victoria’
11-13 August 2005, Royal Australian and New Zealand
College of Psychiatrists, Section of Forensic Psychiatry
Conference, Gold Coast, Queensland
Plenary session on ‘From Enthusiasm to Hatred’
16 August 2005, Clinical Presentation, Melbourne
Presentation on ‘Pathologies of Love’
7 October 2005, FICIS 3rd Annual Conference, Melbourne
Presentation on ‘Why do people complain?’
11 October 2005, Northern CAT Team and Broadmeadows
CAT Team, Melbourne
Presentation on ‘Violence and Schizophrenia’
13-14 October 2005, Multidisciplinary Mental Health
Conference, Justice Health, Sydney
Presentation on ‘Substance abuse, mental disorder and
offenders’
26 October 2005, Clinical Presentation, South Yarra
Presentation on ‘Morbid Jealousy’
2 November 2005, Glenside Hospital – Grand Round,
Adelaide
Presentation on ‘Psychosis and Crime’
31

32
8 November 2005, Clinical Presentation, Melbourne
Presentation on ‘Stalking of Health Professionals’
17 November 2005, Educational Case Conference,
Bendigo Health Care Psychiatric Services
Presentation on ‘Disorders of Passion: Jealousy and
Violence’
8 November 2005, Supreme Court Judges, Melbourne
Presentation on ‘Vexatious Litigants’
21-23 November 2005, Psychiatrists meeting,
Western Australia
Presentation on ‘Pursued by Patients’
1 December 2005, Royal North Shore Hospital, Sydney
Presentation on ‘Schizophrenia, Substance Abuse and
Offending’
23-24 February 2006, TheMHS Conference, Sydney
Presentations on ‘Anti-social and Violent Behaviours -
Association with Mental Disorder’ and ‘Can We Prevent
Violent Behaviour Emerging in Major Mental Disorders?’
26 February 2006, Pfizer Neuroscience Forum, Canberra
Presentation on ‘The Dangerously Seriously Personality
Disordered: do they exist and, if so, what can be done to
reduce the risks they represent?’, and interactive session
participation in discussion panel.
28 February 2006, Clinical Presentation, Melbourne
Presentation on ‘Substance Abuse, Mental Disorder
and Violent Offending’
1 March 2006, Clinical Presentation, Melbourne
Presentation on ‘Stalkers of Health Professionals’
4 March 2006, Mental Health Review Tribunal Annual
Members’ Conference, Brisbane
Presentation on ‘Strengths and Weaknesses of Risk
Assessment’, and Panel Discussion – ‘Is the Patient
Not an Unacceptable Risk?’
16-18 March 2006, Meeting Series, Brisbane
Presentations on ‘Stalking of Health Professionals’,
‘Schizophrenia and Violence: From Correlation to
Prevention’, ‘The Querulant and Vexatious Litigant’,
‘Assessment of Fitness for Trial’, ‘Risk Assessment
and Risk Management in Mental Health Practice’,
and ‘Being an Expert Witness’
23-25 March 2006, Post Graduate Educational Weekend,
Sydney
Presentations on ‘Schizophrenia and Violence: From
Correlations to Prevention’ and ‘Threats of Violence -
Assessing and Managing an Everyday Clinical Problem’
29 March 2006, Clinical Presentation, Melbourne
Presentation on ‘Substance Abuse, Mental Disorder and
Violent Offending’
12 April 2006, Grand Round, Glenside Hospital, Adelaide
Presentations on ‘Mental Disorder and Offending
Behaviours’ and ‘Stalking of Health Professionals’
13 April 2006, Joint Chiefs of Staff, Department of Defence,
Canberra
Presentation on ‘Complainants’
2 May 2006, ANZAPPL Dinner Meeting, Melbourne
Presentation on ‘Hate in the Age of Terrorism’
8 May 2006, Fairness and Resolution Branch Seminar,
Department of Defence, Canberra
Workshops on ‘Managing Unusually Persistent and Difficult
Complainants’, ‘Managing Threats in the Workplace’ and
‘Managing Workplace Stalking’
25 May 2006, Dual Diagnosis/Mental Health Branch Forum,
Melbourne
Presentation on ‘Co-occurring Substance Abuse and Major
Mental Illness’
9 June 2006, Eric Seal Seminar Series, University of
Melbourne, St Vincent’s’ Hospital
Presentation on ‘Stalking of Mental Health Professionals’
Professor James Ogloff
Director of Psychological Services
International
21-25 November 2005, New Zealand Psychological
Society, Christchurch and Auckland
Training on ‘The Assessment of Risk for Violence Among
Offenders and Psychiatric Patients: the HCR-20 and the
START’.
5-9 December 2005, North London Forensic Service,
London
Training on ‘Enhancing Assessment and Treatment of
Violence, Offending Issues and Dual Diagnosis in Mentally
Disordered Offenders’.
February 2006, Visiting Expert Scheme, Ministry of Health,
Singapore
Five day training and service review
14 June 2006, 6th Annual International Association of
Forensic Mental Health Services Conference, Amsterdam
Presentation on ‘The Australian and New Zealand
Experience with the Preventative Detention of Sexual
Offenders – Clinical Perspectives and the Role of Risk
Assessment’
National
11-13 August 2005, RANZCP Annual Conference,
Gold Coast, Queensland
Workshop (with Paul Mullen) on ‘Courtroom Skills’.
Presentation on ‘The Psychopathy/Antisocial Personality
Disorder Conundrum’. Round Table on ‘Risk Assessment
and Management’
18 August 2005, Caulfield Aged Psychiatry, Caulfield
General Medical Centre
Presentation on ‘Psychiatric Illness in Offending’
1-2 September 2005, Long Bay Correctional Complex,
NSW
Training workshop (with Michael Davis) on ‘Risk Assessment
and Management’
16 September 2005, Victoria Police (senior management).
Presentation on ‘Mental Illness and Offending: Implications
for Policing’

14 October 2005, Mental Health Conference of Justice
Health and Australian and New Zealand College of Mental
Health Nurses, NSW Branch, Sydney
Presentation on ‘Structured Professional Judgement
in Violence’
18 October 2005, International Institute of Forensic Studies
and Australian Advocacy Institute’s Third Annual
Conference, Cable Beach, WA
Workshop on ‘The Future of Self-Regulation of Experts
in Psychiatry and Psychology’
24 January 2006, Supreme and Federal Courts Judges’
Conference, Brisbane
Presentation on ‘The Jury Project: Communicating with
the Jury’, and panel discussion
10 February 2006, Sentencing Conference, Australian
National University and National Judicial College of
Australia, Canberra
Presentation on ‘Sentencing: Principles, Perspectives
and Possibilities’
24 March 2006, Grand Round, Alfred Hospital, Melbourne
Presentation on ‘Spanning the Boundaries: Mental Health
in the Criminal Justice System’
10 May 2006, Australian Conference of Parole Boards
and Authorities, Sydney
Presentation on ‘Assessing Risk for Violence in the Parole
Context’
29-30 May 2006, Centre for Mental Health, Brisbane
Two day training on HCR
19-21 June 2006, Bayview Conference Centre, Melbourne
Three day training on PCL-R
28 June 28 2006, Correctional Services Ministers’
Conference, Adelaide
Presentation on ‘Mental Illness and Corrections’.
HOW WE MEASURED OUR PROFESSIONAL EDUCATION PERFORMANCE
IN 2005-2006
Our Performance Measures are established annually by the Department of Human Services.
Performance Measures Performance Targets Outcomes Outcomes Outcomes Outcomes % Change
2005-2006 2005-2006 2004-2005 2003-2004 2002-2003 2003-04 – 2005-06
Number of education and training sessions
provided to area mental health services 18 24 24 22* 17 9.1%
Number of education and training sessions
provided to other agencies 20 23 30 28* 50 17.9%
Number of formal presentations and papers
delivered to professional forums 30 97 109 94 94 3.2%
Number of professional education
placements provided 150 218 212 215 235 1.4%
* The added focus placed on providing education and training sessions to area mental health services in 2003-2004 resulted in a decrease (from 2002-2003) in the amount
of time able to be spent on providing education and training sessions to other agencies.
One day workshop provided for Corrections
Victoria staff on ‘Working with Prisoners with
a Mental Illness’.
33

Research
34
Strategic objectives
• Undertake and publish high quality, relevant and timely
research.
• Improve delivery and advance knowledge of specialist
forensic mental health services.
Challenges
• Ensure that research contributes to clinical practice.
• Successfully access research grants and funding.
How we plan to succeed in 2006-2007
Under the auspice of the Research Committee, undertake
research on –
• the effectiveness and impact of the Crimes (Mental
Impairment and Unfitness to be Tried) Act 1997
• risk management and risk management tools
• stalkers and their victims
• threats to kill
• sex offending, including the use of child internet
pornography
• the role of nursing in improving mental health outcomes
and evidence based psychiatric nursing practice
• substance abuse and mental illness
• inpatient aggression
• cognitive behaviour therapy with forensic patients
• prevalence of offenders with a mental illness re-entering
prison in the context of a relapse of their mental illness
• violence on the roads.
Investigate and develop service options for the provision
of specialist forensic services for –
• sex offenders
• aged/elderly patients and clients.
Continue to investigate policing issues in respect to mentally
ill people, in anticipation of a successful funding outcome
from the Australian Research Council (outcome to be
determined in November 2006).
Continue to pursue consultancy and grant application
opportunities to assist in underwriting our professional
education and research program.
PROFILE
Forensicare has a sound research base and a strong
commitment to supporting research throughout the
organisation. The research program ensures that high
quality research is undertaken to better inform clinical
practice in the provision of public mental health services.
Forensicare is also committed to disseminating research
findings to area mental health services and other
stakeholders. Responsibility for the research program rests
with the Clinical Director, and all research projects are
approved by the Research Committee, a committee of the
Council. All staff are encouraged to participate in the research
program, and during 2005-2006 10% of Forensicare’s clinical
staff were actively involved in research projects.
KEY OUTCOMES
ANNUAL RESEARCH REPORT
Full details of Forensicare’s research program in 2005-2006,
including featured published research, are provided in a
separate publication, the Annual Research Report to
Council. Copies of this report are available from the
Chief Executive Officer (Locked Bag 10, Fairfield, 3078,
or tel 03 9495 9143) or from our website –
www.forensicare.vic.gov.au
PUBLISHED RESEARCH 2005-2006
Journal Articles
Daffern M., Ogloff J R P., Ferguson M., Thomson L. 2005.
‘Assessing Risk for Aggression in a Forensic Psychiatric
Hospital Using the Level of Service Inventory-Revised:
Screening Version’. International Journal of Forensic Mental
Health. 4 (2) 201-206
Daffern M., Ogloff J.R.P., Lee J. 2005. ‘Individual
characteristics predisposing patients to aggression in a
forensic psychiatric hospital’. Journal of Forensic Psychiatry
and Psychology. 16 (4) 729-746.
Daffern M., Mayer M.M., Martin T. 2006. ‘Staff gender ratios
and aggression in a forensic psychiatric hospital’.
International Journal of Mental Health Nursing. 15, 93-99.
Davidson, S. C., Moss, S. 2006. ‘The Effect of Marital
Adjustment on the Association between Police Officers'
Traumatic Distress and Trauma Disclosure’. The Canadian
Journal of Police and Security Services. 4(1): 35-45.
Enticott P,G., Ogloff J.R.P. 2006. ‘Elucidation of Impulsivity’.
Australian Psychologist. 41 (1) 1-12.
Enticott P,G., Ogloff J.R.P., Bradshaw J.L. 2006.
‘Associations between laboratory measures of executive
inhibitory control and self reported impulsivity’. Personality
and Individual Differences. 41 285-294.
Hanlon C., Fekadu D., Sullivan D., Alem A., Prince M. 2006
‘Teaching Psychiatry in Ethiopia’. International Psychiatry.
3(2) 17-20.
Happell B., Martin T. 2005. ‘Changing the culture of mental
health nursing: The contribution of nursing clinical
development units.’ Issues in Mental Health Nursing.
26, 921-933.

Leese M., Shaw J., Thomas S., Mohan R., Harty M.A.,
Dolan M. 2006. ‘Ethnic Differences Among Patients in High
Secure Psychiatric Hospitals in England.’ British Journal of
Psychiatry. 188, 380-385.
Martin T., Daffern M. 2006. ‘Clinical perceptions of personal
safety and confidence to manage inpatient aggression in
a forensic psychiatric setting’. Journal of Psychiatric and
Mental Health Nursing. 13, 90-99.
Mullen, P.E. 2005 ‘Facing up to our responsibilities:
Commentary on… The Draft Mental Health Bill in England:
without principles’. The Psychiatric Bulletin. 29 (7).
Mullen P.E., Lester G. 2005. ‘Vexatious Litigants and
Unusually Persistant Complainants and Petitioners: From
Querulous Paranoia to Querulous Behaviour’. Behavioural
Sciences and the Law. 23: 1-17.
Mullen P.E. 2006. ‘Schizophrenia and Violence: from
correlations to preventative strategies’. Advances in
Psychiatric Treatment. 12: 239-248.
Nicholls T.L., Ogloff J.R.P., Brink J., Spidel A. 2005.
‘Psychopathy in women: A review of its clinical utility for
assessing risk for aggression and criminality’. Behavioural
Sciences and the Law. 23 (6) 779-802.
Ogloff J. R. P. 2006. ‘Psychopathy/antisocial personality
disorder conundrum’. Australian and New Zealand Journal
of Psychiatry. 40 (6/7) 519-528.
Purcell R., Pathé M., Mullen P.E. 2005. ‘Association
between stalking victimisation and psychiatric morbidity in
a random community sample’. British Journal of Psychiatry.
187, 416-420.
Sullivan D.H., Mullen P.E., Pathe M.T. 2005. ‘Legislation in
Victoria on sexual offenders: issues for health professionals’.
The Medical Journal of Australia. 183 (7).
Sullivan D.H., Mullen P.E. 2006. ‘Forensic Mental Health’.
Australian and New Zealand Journal of Psychiatry. 40 (6/7)
505-507.
Tye C.S., Mullen P.E. 2006. ‘Mental Disorders in Female
Prisoners’. Australian and New Zealand Journal of
Psychiatry. 40 (3) 266-271.
Walterfang M., Fietz M., Fahey M., Sullivan D., Leane P.,
Lubman D., Velakoulis D. 2006 ‘The Neuropsychiatry of
Niemann-Pick Type C Disease in Adulthood’. Journal of
Neuropsychiatry and Clinical Neurosciences. 18,158-170.
Books
Ogloff J.R.P., Clough J., Goodman-Delahunty J., Young W.
2006. ‘The Jury Project: Stage 1-A survey of Australian and
New Zealand Judges’. The Australian Institute of Judicial
Administration Incorporated.
Purcell R., Powell M.B., Mullen P.E. 2005. ‘Clients Who
Stalk Psychologists: Prevalence, Methods, and Motives’.
Professional Psychology: Research and Practice. 36 (5)
537-543.
OUTCOMES OF SELECTED RESEARCH COMPLETED DURING 2005-2006
RESEARCH PROJECT CLINICAL OUTCOME
An investigation into serious violence associated
with motor vehicle use: Is ‘road rage’ a valid
or useful construct?
Andrew Carroll, Anne Davidson and James Ogloff
This study, supported by a Project Grant from the Criminology Research Council, examined data from convicted offenders
in Victoria to determine whether the perpetrators of, and interpersonal triggers for, violence occurring on the roads differ
between road and non-road contexts. Data was compared from 31 cases of road violence with 31 cases of violence
against strangers which resulted in similar charges, but which occurred in non-road contexts. There were no significant
differences between cases and controls on any demographic, criminological or psychiatric variables, except for ethnicity.
In the road context, the triggering incident was most likely to be coded as an act of recklessness, which appeared to
pose a threat to the safety of the other party. Off the roads, the most common trigger was an apparent threat to the
other party’s status. In both contexts, the initial trigger was as likely to be perpetrated by the eventual victim as the
offender. The study provides support for causal models of road violence that emphasise personological rather than
environmental factors, and also has implications for preventative strategies.
Factors involved in the administration of PRN
psychotropic medications by registered nurses
on an acute all-male forensic psychiatric unit
Ros Young
Inhibitory Control and Aggression Among
Inpatients at a Secure Hospital
James Ogloff, Michael Daffern, Peter Enticott
Pro re nata (PRN) medications are administered to patients as the need arises, according to the patient’s circumstances
or situations, and is one of the most autonomous skills of nurses. Registered nurse participants were interviewed to
identify, explore and clarify the factors involved in the administration of PRN psychotropic medications on an all-male
forensic psychiatric unit. The study found that many factors were considered when deciding to give out PRN medication,
including mental state and risk assessments, medication choices, education, training and nursing experiences. This study
adds to limited studies investigating this important topic.
Violent offender inpatients at Thomas Embling hospital were administered various neuropsychological measures of
inhibitory control and impulsivity, and performance was compared to that of a community comparison sample. Inpatients
demonstrated impairment in several aspects of behavioural and cognitive inhibitory control, possibly reflecting
neuropsychological deficits associated with prefrontal brain regions. Impaired performance on these inhibition tasks,
however, was minimally associated with self-reported impulsivity, and did not prospectively predict inpatient aggression
within Thomas Embling Hospital.
35

RESEARCH IN PROGRESS AT 30 JUNE 2006
Risk for Violence among Forensic Psychiatric Patients in Australia
The epidemiology and phenomenology of uttering threats to harm others
Efficacy of treatment of resistant command hallucinations
Substance use and personality characteristics of forensic outpatients with a mental illness
The Prediction of Community Outcomes of Forensic Patients
Evaluating the operation of the Crimes (Mental Impairment and Unfitness to be Tried) Act 1997
Perceptions of a transitional unit in a Forensic Mental Health Hospital
Exploring forensic psychiatric nurses’ experiences with the use of Muirhead cells in a prison
Offending and Violence among Mentally Ill Persons
Medical Induced Obesity: The lived experience of people residing in a secure forensic psychiatric environment
Ongoing Research into Vexatious Litigants
A study investigating risk assessment in stalking related offences
Ex prisoners experience of post release case management
RESEARCHER/S
Paul Mullen, James Ogloff, Michael Davis
Lisa Warren
David Copolov, Paul Mullen, Fran Shawyer
James Ogloff, Jenny Redman, Joanne Griffiths
Andrew Carroll, Shannon Reid, Michael Davis
Janet Ruffles, James Ogloff
Kylie Thomson
Jo Bowers
James Ogloff
Danny Gamble
Grant Lester
Paul Mullen, James Ogloff, Troy McEwan
Lisa Bumpstead
HOW WE MEASURED OUR RESEARCH PERFORMANCE IN 2005-2006
Our Performance Measures are established annually by the Department of Human Service and can vary each year.
Comparative annual data is shown where the measures have remained unchanged and the % change is meaningful.
Performance Measures Performance Targets Outcomes Outcomes Outcomes Outcomes % Change
2005-2006 2005-2006 2004-2005 2003-2004 2002-2003 2003-04 – 2005-06
Number of completed research projects Target not required 4 6 5 7 n/c
Number of research projects approved
by Research Committee for commencement Target not required 7 n/a n/a n/a n/a
Number of developments in clinical practice
introduced as a result of research Target not required 6 5 3 3 -
Number of scholarly articles published Target not required 22* 19 35 25 40.0%
in refereed journals and books 1 book, 1 book, 25 journal articles, 16 journal articles,
21 journal articles 4 chapters in books, 2 books and 2 books,
14 journal articles 8 chapters in books 7 chapters in books
* At 30 June 2006, 8 journal articles and 3 chapters in books remained in press.
36

Centre for Forensic Behavioural Science
Approval has been given to establish a Centre for Forensic
Behavioural Science within the School of Psychology,
Psychiatry and Psychological Medicine at Monash
University. Forensicare is a key partner in the Centre, which
further consolidates the relationship between Forensicare
and Monash University that began with the joint
appointment of Professor Paul Mullen in 1992, and then
Professor James Ogloff in 2001.
The Centre for Forensic Behavioural Science will have a
national focus on research, teaching, service and practice
development. Bringing together researchers, students,
academics and clinicians from a variety of disciplines, the
Centre will further develop the areas of forensic mental
health and forensic behavioural science. A core element of
the Centre’s operating practice will be to work to transfer
the academic and clinical excellence of the Centre into
practice in the health, community services and criminal
justice sectors.
The Centre for Forensic Behavioural Science has a multidisciplinary
profile, with representation from psychiatry,
psychology, social work, law, nursing, occupational therapy
and epidemiology. The Centre will seek to develop
collaborations with relevant and interested health, justice
and other industry partners.
The Centre will make a vital contribution to the development
of best practice models of care and treatment. Importantly,
the Centre will have a central role in developing an
appropriately skilled workforce to optimise the delivery of
health, social and criminal justice services. The research,
teaching and clinical outputs of the Centre will provide a
framework for the development and revision of public policy
regarding the need for public safety, and seek to reduce
levels of victimisation of some of the most vulnerable people
in our society.
Dr Stuart Thomas
Staff
Dr Stuart Thomas, an epidemiologist specialising in forensic
mental health, has been appointed Lecturer, Centre for
Forensic Behavioural Science. A number of other clinical
staff from Forensicare hold honorary or casual appointments
in the School of Psychology, Psychiatry and Psychological
Medicine and will be employed by the Centre. These
include Dr Kylie Thomson, Dr Michele Pathé and Dr Michael
Daffern.
Dr Stuart Thomas
Prior to his appointment to the Centre for Forensic
Behavioural Science, Dr Thomas was a Lecturer in the
Department of Forensic Mental Health Science at the
Institute of Psychiatry, King’s College London. He has
previously been the recipient of a highly regarded Research
Training Fellowship with the Department of Health in the
United Kingdom, and was awarded his Doctorate of
Philosophy (PhD) in Health Services Research in August
2005, for his study examining levels of unmet need among
mentally ill prisoners and forensic mental health patients. He
previously studied for his Masters of Science (MSc) Degree
in Epidemiology at the internationally renowned London
School of Hygiene and Tropical Medicine, and holds a
Master of Laws (LLM) qualification in Criminal Justice,
awarded with Distinction, from the University of Kent
at Canterbury.
Graduate Certificate and Graduate Diploma
The Graduate Certificate and Graduate Diploma in Forensic
Behavioural Science have been approved by the University
to commence in the 2007 academic year. The Certificate in
Forensic Behavioural Science (FBSci) commenced in March
2006, with twenty six students from a range of agencies
and professional backgrounds enrolled in the course.
These courses in forensic behavioural science have been
developed to enhance the knowledge and skills of
professionals working with people displaying antisocial and
criminal behaviour. They cover assessment, treatment and
management issues and will assist professionals to
incorporate ‘best practice’ principles into their own work
practices. Modules of the courses include fundamentals
of forensic behavioural science, the role of mental health
in criminal offending, mental health and the correctional
system, developmental aspects of forensic behavioural
science, the assessment and management of problem
behaviours, advanced risk assessment and risk
management, forensic aspects of personality and its
disorders, research methodologies and psychiatric nursing
in the forensic context. The Graduate Certificate will be
awarded upon the successful completion of 4 of these
modules, and the Graduate Diploma upon successful
completion of 8 modules.
Contact
For information about course participation and research,
please contact Dr Stuart Thomas –
Stuart.Thomas@med.monash.edu.au
37

38
Corporate Support and Development

Strategic objectives
• Provide high quality, relevant and timely advice
to Government.
• Provide high quality, efficient and effective support
services across the organisation.
• Identify service development opportunities and submit
appropriate proposals to Government.
• Increase community awareness and understanding
of forensic mental health issues.
Challenges
• Manage the increasing demand for services without
compromising the quality of services and care.
• Ensure that forensic mental health is sufficiently
resourced to meet the continued and increasing
demand for services from the criminal justice and
general mental health systems.
• Fully implement program changes to meet the full
spectrum of offender need.
How we plan to succeed in 2006-2007
Our plans include –
Meeting service demand –
• Review organisation-wide practices to optimise the
organisation’s ability to respond to increasing service
demand.
• Subject to the requisite planning approvals, develop
18 additional secure inpatient beds to increase capacity
of Thomas Embling Hospital on an interim basis.
• Work collaboratively with an identified public mental
health service and the Department of Human Services
as required, to contribute to the planning of a combined
secure extended care facility to build on the
commitment by Government to ‘increase bed capacity
at Thomas Embling Hospital’.
• Continue to pursue the development of a more rational
and effective mental health service for men and women
in the Victorian prison system.
• Continue to advocate for the expansion of the
Community Forensic Mental Health Service.
Develop service sustainability –
• With the approval of Monash University, establish a
Centre for Forensic Behavioural Science, in the School
of Psychology, Psychiatry and Psychological Medicine,
in a partnership arrangement between Forensicare and
Monash University.
• Offer the Certificate in Forensic Behavioural Science and
the Post Graduate Diploma in Forensic Behavioural
Science on an ongoing basis, commencing in the 2007
academic year.
Quality improvement initiatives –
• Continue to participate in the development and
implementation of benchmarking initiatives with other
Australian jurisdictions.
• Commence preparations for the Australian Council
on Healthcare Standards organisation-wide survey in
August 2007, encompassing the introduction of EQuIP
Version 4.
• Consolidate and further develop organisational
(including financial) risk assessment and management
systems, including new organisational governance
compliance requirements.
Information Technology –
• Under the auspice of the Information Management /
Technology Council Committee, develop an Information
Technology Strategic Plan.
• Subject to funding, continue the redevelopment of
information technology based management systems
for operational, planning and research purposes.
Consolidating and Strengthening Clinical Programs –
• Complete the training of all clinical staff in offending
issues and dual diagnosis.
• Finalise the implementation of the patient/client
assessment protocols.
• Complete the implementation of identified program
developments.
39

40
PROFILE
Corporate Support and Development is the direct
responsibility of the Chief Executive Officer and provides
organisation-wide –
• financial and administrative functions
• advice and planning
• service development
• community education and promotion
KEY OUTCOMES
NEW SECURE INPATIENT FACILITY
The Chairman, Chief Executive Officer and other senior staff
met with the Ministers for Health and Corrections and the
Attorney-General during the year to discuss the urgent
requirement for additional secure forensic inpatient capacity.
Forensicare subsequently worked closely with the
Department of Human Services to prepare a funding
submission for a new facility. The submission, which
covered the need for additional secure inpatient beds
and identified forensic beds, became a component of the
overall Department’s budget submission. The proposal was
successful, and funding was announced in the May 2006
Budget to enable planning to proceed on a secure
accommodation facility for people requiring longer-term
care, which will build on the Government’s commitment
to increase bed capacity at Thomas Embling Hospital.
During 2006-2007, we will continue to work collaboratively
with the Department of Human Services and an identified
mental health provider to ensure that the needs of forensic
mental health are incorporated in the planning process.
SERVICE ENHANCEMENT –
COMMUNITY FORENSIC MENTAL
HEALTH SERVICE
A formal proposal for capacity enhancement of the
Community Forensic Mental Health Service was prepared
for the Department of Human Services. The proposal,
included a profile of demand growth for services and
recommended the implementation of a staged expansion
of community forensic mental health services. While the
Department has acknowledged the growth in demand and
the important contribution of the Community Forensic
Mental Health Service to the enhancement of community
protection, a formal outcome of our proposal has not been
received. Addressing the identified service demand issues
will require additional resourcing.
VICTORIAN INSTITUTE OF FORENSIC
MEDICINE
A Memorandum of Understanding between Forensicare
and the Victorian Institute of Forensic Medicine was formally
signed on 9 November 2005. The launch was attended by
the Attorney-General and Minister for Health, together with
senior staff from the Department of Human Services and
criminal justice agencies. The Memorandum of
Understanding will enable both organisations to pursue
collaborative research and administrative initiatives to
achieve improved outcomes for the criminal justice and
mental health sectors.
CERTIFICATE IN FORENSIC
BEHAVIOURAL SCIENCE
Curriculum development for the Certificate in Forensic
Behavioural Science was completed in 2005, and the first
year of the Certificate in Forensic Behavioural Science
commenced in the 1st semester 2006. Twenty six students
from varied backgrounds, including police, corrections,
mental health and non-government organisations, were
enrolled in the 1st semester course. The Certificate course
will continue in 2nd semester 2006, and the Graduate
Certificate in Forensic Behavioural Science and the Post
Graduate Diploma in Forensic Behavioural Science will be
offered on an ongoing basis from 2007.
Discussions were held with Justice Health, NSW, during
the year regarding developing the Certificate program
to suit their specific requirements. Although Justice Health
ultimately determined to develop their own program, we
have agreed that there is the potential to develop future
collaborative initiatives.
NATIONAL BENCHMARKING
Forensicare was one of the four forensic mental health
service agencies invited to participate in the federally
funded National Benchmarking Project. Thirteen
performance indicators for forensic mental health
benchmarking purposes have been identified and three
forums were conducted in 2006 for all participants.
Technical specifications for the construction of each of the
performance indicators are being developed to ensure
consistency of data, and participants are currently collecting
data for the thirteen identified forensic key performance
indicators for the period July 2004-June 2005. The project
is scheduled to conclude in May 2007.
ACCREDITATION – AUSTRALIAN
COUNCIL ON HEALTHCARE
STANDARDS
Full accreditation was maintained at the Australian Council
on Healthcare Standards, Periodic Review in August 2005.
The Moderate Achievement (MA) ratings that are required
to pass accreditation were surpassed in four of the nineteen
mandatory criteria. A total of nine recommendations were
received, none of which were high priority. In keeping with
the requirements of the Australian Council on Healthcare
Standards Agreement, Forensicare is currently undergoing
a self assessment of the nineteen mandatory criteria.
QUALITY IMPROVEMENT
Quality improvement initiatives implemented during 2005-
2006 include –
• A review was conducted of the Risk Registers
maintained across the organisation. As a result of the
review, a consolidated risk register is being developed
for the organisation. Underpinned by the revised
governance structure, this process will allow for
tracking, mitigating and monitoring of all risks across
all sectors of Forensicare.

• Patient weight gain and healthy eating initiative –
a review has commenced by clinical staff across
Thomas Embling Hospital of the hospital-wide situation
in respect to the weight and eating habits of patients.
The review was prompted by the potential side-effect
of significant weight gain that can accompany one of
the more frequently used drugs, Clozepine. Work is
currently being undertaken to obtain base line data
of various clinical target groups, which will enable
qualitative and quantitative practice and organisation
change to be implemented, if shown to be necessary.
• Interactive clinical documentation project – this pilot
project, being trialled in one of the Continuing Care units
within Thomas Embling Hospital, is nearing completion.
The project has involved patients directly documenting
their care in their Individual Service Plan with their
primary nurse. The pilot program is due to be
completed in the latter half of 2006. The results of the
pilot will be reviewed and assessed for suitability for use
within other units at Thomas Embling Hospital.
Planned for 2006-2007 –
• Forensicare is to undergo a full accreditation
(organisation wide) survey, including an in-depth Mental
Health Review, in August 2007. In preparation for the
introduction of Evaluation Quality Improvement Program
(EQuIP) version 4 (the new EQuIP standard being
introduced by the Australian Council on Healthcare
Standards in January 2007), the EQuIP Steering
Committee and EQuIP Function Working Groups will
be aligned to adapt to the new standard, and training
sessions provided for managers and staff.
EMERGING PROGRAM NEEDS
The need to provide clinical programs and support for the
following target groups has been investigated –
Sex offenders – Discussions, led by Professor James
Ogloff, commenced with Corrections Victoria in relation
to the enhancement and rationalisation of the treatment
of sex offenders (currently provided through our Problem
Behaviour Program).
Aged offenders with a mental illness – discussions with
aged care psychiatrists have led to a successful application
for a University of Melbourne medical student to be
seconded for one year to investigate the physical and
mental health needs of elderly prisoners in Victoria. The
student will commence in July 2007. This project will
provide the background to innovations to improve the
provision of targeted services to our growing population
of elderly mentally disordered offenders.
VICTORIA POLICE
Discussions continued during the year in relation to
establishing a forensic mental health specialist advisory and
support service for police for mentally ill people detained in
police custody. This initiative has now merged with the five
year research project that has been developed by Forensicare
and Victoria Police regarding the interface between mentally
disordered offenders and operational policing.
Work with Victoria Police in relation to the management and
care of mentally ill offenders/alleged offenders continued
during the year. Ongoing support will include the provision
of advice on police training content and joint research
activity regarding policing and the mentally ill.
EXTERNAL FUNDING
Forensicare continued to pursue external funding through
fee-for-service consultancies and grant applications to fund
our professional education and research program. Specialist
advice was provided to Western Australia, New South Wales
and South Australia on the development of forensic mental
health services, although none of this was on a fee-forservice
basis. There is, however, potential for this to develop
during the coming year.
Professor James Ogloff was a member of two consortias
that obtained grants from the Australian Research Council
to undertake large research projects in 2006-2009. These
projects on ‘Confidentiality in Therapeutic Relationships:
Developing Guidelines for Mental Health Professionals’
and ‘Juries and interactive visual evidence: Impacts on
deliberation processes and outcomes’ will make a vital
contribution to future clinical practice and policy
development. A large funding submission was also lodged
with the Australian Research Council for a 5-year joint
research project by Forensicare and Victoria Police
investigating policing issues in respect to mentally ill people.
The outcome of this submission will be advised later in 2006.
COMMUNICATION STRATEGY
Forensicare has a comprehensive Communications Strategy
that details all aspects of communication, both internal and
external, across the organisation. A review of the Strategy
commenced in 2005-2006 and will be completed in the
coming year to ensure that it continues to reflect
contemporary media practices.
HEALTH INFORMATION SERVICES
Health Information Services activities during the year
included –
• Delivery of a reporting tool that enables senior staff
to extract tailored reports from RAPID (the data base
used by the Department of Human Services to capture
mental health data across the state). Staff training was
conducted in the use of the reporting tool and a User
Manual compiled.
• Formal audits were conducted to ensure that the
Department of Human Services’ requirements on
reporting of diagnoses for both inpatient and community
clients are met by Forensicare. Audits on the medical
record and quality of data in various databases
continue.
• Two Health Information Management students from
LaTrobe University undertook placements with Health
Information Service, Forensicare.
• Destruction of records was undertaken in accordance
with the Public Records Office Disposal & Retention
Schedule. The Public Records Office has been notified
of any records that have been destroyed.
41

42
• The Health Information Manager is among the senior
Forensicare staff participating in the National
Benchmarking Project and is involved in compiling
data for this project.
ADVICE TO GOVERNMENT
In 2005-2006, Forensicare provided the following formal
advice to Government –
• Department of Human Services –
• Secure/extended care unit – initial proposal and
collaborative input to funding submission
• Interim additional Thomas Embling Hospital capacity
– initial proposal
• Corrections Victoria, Department of Justice –
Enhancement of forensic mental health service delivery
at Melbourne Assessment Prison - proposal
• Human Rights Consultation Committee, Attorney-
General’s Department –
Discussion paper ‘Have your say about Human Rights
in Victoria’ – response
• Australian Law Reform Commission –
Discussion paper 70 – ‘Sentencing of Federal
Offenders’ – response
• Senate Finance and Public Administration Committee
Inquiry Into the Electoral and Referendum Amendment
(Electoral Integrity and Other Measures) Bill 2005 –
submission ‘The Role of Voting in Achieving a
Successful Community Transition for Prisoners’.
• Drugs and Crime Prevention Committee, Parliament
of Victoria –
Inquiry into the Misuse/Abuse of Benzodiazepines and
Other Forms of Pharmaceutical Drugs in Victoria –
requested submission on impact of misuse/abuse
of benzodiazepines on forensic mental health clients
and patients and prisoners.
INTERNATIONAL AND INTERSTATE
VISITORS
During 2005-2006 we hosted visits from –
• Eight clinicians and senior officers, Ministry of Health,
National Psychiatric Hospital and Bach Mai General
Hospital, Vietnam
• Ms Gill Attrill, Principal Psychologist, Home Office, UK
• Senior Managers (3), Rampton High Secure Hospital,
UK
• Senator Lyn Allison, Chair, and Senators Ian Holland,
Michael Forshaw and Gary Humphries, Senate Select
Committee on Mental Health
• The Hon. Tony Abbott, Federal Minister for Health
• The Hon. Bronwyn Pike, Minister for Health, Victoria
• The Hon. Rob Hulls, Attorney-General, Victoria
• The Hon. Tim Holding, Minister for Corrections, Victoria
• The Hon. Justice Marilyn Warren, Chief Justice
of Victoria
• Attorney-General, WA, together with Director of Clinical
Services, Forensic Mental Health Services, WA
• Clinical leadership group, Glenside and James Nash
House, SA
• Design team, new forensic mental health facility, SA
• Manager, Forensic Mental Health Service, WA
• Construction consortia, Forensic Mental Health facility,
NSW
• Design team, Forensic Mental Health Facility, and senior
officers, Department of Health, NSW.
BUSINESS SUPPORT
MANAGEMENT REPORTING
A new reporting software package (VISION), that is
consistent with commercial principles and practices, was
implemented during the year. The financial reporting and
accounting systems of Forensicare are now fully integrated.
Reports available include full accrual budgets and
expenditure, both at summary and detailed activity levels,
together with management reports on information
technology, payroll, human resources, maintenance and
motor vehicles. A reporting timeframe has also been
implemented, both internally and externally, to provide
monthly reports within 10 working days of the end of the
month.
INTERNATIONAL FINANCIAL
REPORTING STANDARDS (A-IFRS)
The transition to International Financial Reporting Standards
was completed during 2005-2006. Professional education
courses on the organisational requirements of the
Standards were provided by Deloitte and the Department
of Treasury and Finance for all finance staff. The Financial
Statements in this Annual Report are prepared in
accordance with all International Financial Reporting
Standards. For full details of the effects of the Standards,
see note 22, page 92.
INFORMATION TECHNOLOGY
Information Technology Management
Following recommendations contained in the review
of governance arrangements within Forensicare, an
Information Technology Committee of Council has been
established to assist the organisation focus strategic
attention on this important area (see Corporate
Governance, page 61).
Information technology remains an area of greatest
organisational exposure for Forensicare. Advice has been
received from the Department of Human Services that it
may take up to 5 years for Forensicare to be able to
develop a compliant patient information management
system through the HealthSmart initiative. As a result,
Forensicare has commenced planning with the Department

of Human Services to develop an alternative system with
a view to achieving implementation within a shorter
timeframe.
Information Technology Support Services
The Information Technology (IT) function is responsible
for providing end users support services for Forensicare’s
information technology systems and infrastructure. The key
delivery mechanism for this service is via the IT Help Desk.
During the year, 958 general IT support requests were
received, a decrease from the 1,149 support requests
received in 2004-2005. This decrease reflects a stable
IT infrastructure, made possible through the upgrade of
personal computers and the Wide Area Network conducted
during the year.
Wide Area Network Infrastructure
The first phase of a Wide Area Network upgrade
commenced during the year. The upgrade is being
conducted to increase the capacity and speed of our
communication links to remote staff. The high speed link
has been established with our community service, and
multipoint links and broadband connections will be
introduced in the coming year to lower capacity sites
(courts serviced by the Court Liaison Program and Care
Plan Assessments Victoria).
Other initiatives
• Internet upgrade - work commenced on the upgrade
of Forensicare’s internet website. This is a major project,
and it is anticipated that the new website will be
launched late in 2006.
• Voice communications - as part of the whole of
Government Communications Tender, Forensicare
transferred all voice communications to the new
provider selected by Government.
• Data communication – Forensicare is participating in the
whole-of-Government tender process for the provision
of data communications. It is anticipated that this
process will be completed in 2006-2007.
PAYROLL SERVICES
The smooth introduction of salary packaging within
Forensicare was achieved during 2005-2006. This was
a major initiative that required extensive systems
development, training and regular staff communication
bulletins. Salary packaging was successfully introduced
in November 2005.
FLEET MANAGEMENT
A review of Forensicare’s vehicle fleet was conducted in
2005-2006 to evaluate the costing model for Executive
vehicles. It was found that 100% of all costs relating to
Executive vehicles was recouped. This is attributed to the
change-over policy introduced in 2004-2005, which
includes the negotiation of individual vehicle purchase
and sales with retailers.
In accordance with our Fleet Management Policy and
Environmental Strategy, three hybrid (petrol/electric) vehicles
were purchased for our vehicle fleet. The use and running
cost of these vehicles is being closely monitored. Initial
results show that the hybrid vehicles are cost-effective and
have resulted in fuel savings.
ASSET MANAGEMENT
A full asset condition report of all operational and administrative
sites, commenced in 2004-2005, was completed during the
year. The report was subsequently audited by Deloitte, our
internal auditors, and recommendations made for
enhancements which will assist our strategic planning for
asset replacement over the next 10 years. Implementation
of the recommendations commenced, and will be completed
by October 2006.
MAINTENANCE
Together with our maintenance contractor, Adesse Pty Ltd,
a review of all corrective and preventative maintenance
works conducted over the last two years was held to
identify future maintenance projects and staffing
requirements. The review found that corrective maintenance
increased considerably over the past 2 years and that
employment of a multi-skilled maintenance staff member
would reduce the future cost and use of external
contractors. The review will be considered by Council early
in 2006-2007.
LEGAL SERVICES
Forensicare operates under a complex legislative
environment that governs its relationships with Government
and the services it supplies to patients and clients. The
Mental Health Act 1986 and the Crimes (Mental Impairment
and Unfitness to be Tried) Act 1997 set out the legal
framework for treatment for patients and clients.
CUSTODIAL SUPERVISION ORDERS
Developments relating to patients treated under the Crimes
(Mental Impairment and Unfitness to be Tried) Act 1997
(CMIA) in 2005-2006 included –
• Eight patients were admitted to Thomas Embling
Hospital on Custodial Supervision Orders (CSO),
compared to 7 in 2004-2005. These Orders are made
following a finding at trial of ‘not guilty by reason of
mental impairment’. Due to the limited bed capacity
at Thomas Embling Hospital, a person in prison when
the court makes a CSO is required to wait for admission
until a bed becomes available at Thomas Embling
Hospital. Of the 8 new Orders, 4 people remained
in prison for periods between 3 and 78 days after the
Order was made before being admitted to Thomas
Embling Hospital - the average length of wait for
admission was 34 days.
43

44
• Two patients moved from Thomas Embling Hospital
to live full time in the community on extended leave
(compared to 4 the previous year). Both these patients
had utilised the Transitional Accommodation Program
prior to applying for extended leave.
• No patients on extended leave had their extended leave
suspended due to a relapse of their illness.
• There were 2 cases where patients on Custodial Orders
came back for a review which had been initiated by the
Court at the time the original Order was made. This is a
new development which has not occurred in the past,
and indicates the relevant judges’ concern that the
individual patients have their case actively reviewed by
the Court which made the Order. In both these cases
the Custodial Order was confirmed and a further review
date set.
• Three people on extended leave had their Custodial
Supervision Orders varied to Non-Custodial Supervision
Orders.
Custodial Supervision Orders –
Thomas Embling Hospital Patients
No. of patients
80
60 36 40 48 52 60
40
20
0
2002 2003 2004 2005 2006
NON-CUSTODIAL SUPERVISION
ORDERS
• Six Non-Custodial Supervision Orders (NCSO) were
made for new offenders (2 less than 2004-2005).
• Three people on a NCSO were readmitted to their local
mental health service hospital due to deterioration in
their mental state. This reflects the growing trend for this
group of patients to be supervised by Forensicare, but
treated on a regular basis by their local service.
• Of the 43 clients in the community on NCSO’s at
30 June 2006, 36 are supervised by Forensicare’s
Community Forensic Mental Health Service, and
7 supervised by area mental health services.
• Six people on a NCSO had their Order revoked
(compared to only 1 last year). They will continue to
reside in the community without compulsory treatment
under the CMIA. Only 2 of these people had previously
been on a Custodial Order in hospital - the remaining
4 had their NCSO’s made at a criminal trial.
• Eleven people on NCSO’s were subject to review by the
Courts, either due to the review being set by the Court,
or being triggered by the major review provisions in s.35
of the CMIA. At the reviews –
• 5 people had their Order revoked (this number is
included in the total of 6 above)
• 3 people were unsuccessful in having their Order
revoked and their Orders were confirmed
• 2 people had their Orders confirmed
• 1 case remains undecided.
During the year there were 23 Court hearings for people
on Supervision Orders under the CMIA that involved
Forensicare staff (there were 17 court hearings in 2004-2005).
As more Orders are made, this number will continue to
increase, particularly as the Courts appear more likely to set
review dates when an original Order is made following
a trial. Each Court hearing involves considerable clinical staff
input (forensic psychiatrists and case managers) and has a
significant impact on the existing workload of all staff involved.
30
20
10
Non-Custodial Supervision Orders
Supervised by Forensicare
No. of orders
50
19 23 33 40 43
40
0
2002 2003 2004 2005 2006
COURT REPORTS
Forensicare has continued to see a strong demand for
psychiatric and psychological reports requested by the
courts.
Requests from the Office of Public Prosecutions (OPP)
for reports on issues of fitness to plead or the mental
impairment defence under the Crimes (Mental Impairment
and Unfitness to be Tried) Act 1997 (CMIA) continued to
take considerable time and effort. A detailed analysis of
OPP requests indicated that in the last three years the
number of OPP reports completed has almost doubled. We
subsequently established a system to monitor the requests
for reports from the OPP, and prepared a draft protocol to
manage the demand. In discussions with the OPP, we
advised our intention to provide a ceiling number of reports
(52) per year, and indicated that any additional reports will
be invoiced at cost. In 2005-2006 however, there were
fewer than this number of requests (43 requests were
received).
A number of requests received for reports from the OPP
which were for accused people who did not have a
psychiatric diagnosis - 11% of the requests (ie. 5) were for
reports on people who had an intellectual disability. We
subsequently commenced discussions with DisAbility
Services, Department of Human Services, requesting that
they accept responsibility for resourcing this area. A more
detailed analysis of requests and outcomes will be
undertaken in the coming year with a view to managing
this service demand.

The impact on the organisation of preparing these reports
is considerable. The preparation of a court report is time
consuming, due to the volume of material which
psychiatrists and psychologists must examine prior to
preparing a report, and the time spent in court. Where the
mental impairment or fitness of an accused person remains
an issue at trial, psychiatrists and psychologists are often
required to give evidence.
LAW REFORM AND TRAINING
Regular training on the criminal law and the Crimes (Mental
Impairment and Unfitness to be Tried) Act 1997 (CMIA),
confidentiality and privacy continued to be provided to
Forensicare staff through our professional development
program.
During the year we made submissions to the State
Government’s Human Rights Consultation Committee on
the issue of a proposed Charter of Human Rights for
Victoria. We also made further submissions to the Australian
Law Reform Commission’s Inquiry into Federal Sentencing
Legislation, and were involved in further consultation with
the Commission about how the Commonwealth Crimes Act
1914 provisions on mental impairment impact on Victorian
offenders and patients. The Final Report ‘Same Crime,
Same Time’ recommended that a comprehensive inquiry be
initiated by the Federal Government into issues concerning
people in the federal criminal justice system who have a
mental illness, intellectual disability or cognitive impairment.
This recommendation was supported by Forensicare in our
submission. There is a clear need for a broad public review
of the issue of mental disorder, criminal responsibility and
sentencing, both in Victoria and nationally.
JUDICIAL AND LEGAL LINKS
Forensicare acknowledges the need to maintain strong
links with the Courts and the Office of Public Prosecutions.
We continued to provide formal tours of Thomas Embling
Hospital (through the Judicial College of Victoria) to Judges
and Magistrates. A program was also run for judicial
participants by the Judicial College of Victoria which
enabled Judges and Magistrates to observe hearings
of the Forensic Leave Panel at Thomas Embling Hospital.
HOW WE MEASURED OUR CORPORATE SUPPORT AND DEVELOPMENT
PERFORMANCE IN 2005-2006
Our Performance Measures are established annually by the Department of Human Services and can vary from year to year.
New measures were introduced by the Department of Human Services in 2005-2006. Performance targets established
for this program area are small, and a % change in our annual performance is not included as the change shown would
lack clarity.
Performance Measures Performance Outcomes Outcomes Outcomes Outcomes
Targets 2005-2006 2004-2005 2003-2004 2002- 2003
Organisation-wide compliance with National Service Standards
to Level 1 standard Target not required Achieved Achieved Achieved Achieved
Number of responses for specialist advice and information
to Department of Human Services (DHS)
and other government agencies Target not required 4 3 6 2
Number of submissions which address gaps in service
in forensic mental health, public mental health
and justice environments Target not required 4 4 4 4
Prepare report on Category One Incident and submit to DHS
the business day following the incident 100% 100% n/a n/a n/a
Submit recommendations arising from the Quarterly Security Audits
to Department of Human Services after the Audit Report
and recommendations have been endorsed by the
Quality Improvement Committee Target not required n/a 100% 100% 100%
Submit Quarterly Incident Report to DHS following
tabling at Quality Improvement Sub-Committee Target not required n/a n/a n/a n/a
45

Sustainability Management
Corporate Performance
Our People
Social Performance
Our Environment
46

CORPORATE PERFORMANCE
OCCUPATIONAL HEALTH AND SAFETY
The provision of a safe environment is an essential and
particularly sensitive issue in forensic mental health.
Forensicare has a strong commitment to the safety and
health of staff and others involved in our activities, and has
an active Occupational Health and Safety Program. This
program is supported by the Occupational Health and
Safety Committee, management and elected Health and
Safety representatives.
The Occupational Health and Safety Committee consists
of representatives from all operational areas, and is
responsible for overseeing health and safety issues and
monitoring the organisation’s performance. During 2005-
2006, the Occupational Health and Safety Committee met
bi-monthly, and wherever possible, the Committee gave
priority to managing issues at a workplace level.
Achievements in 2005-2006 –
• the Designated Work Groups were reviewed and realigned
to organisational needs
• Occupational Health and Safety representatives were
duly elected, in keeping with legislative requirements
• terms of reference of the Committee were reviewed.
Initiatives planned for 2006-2007 –
• review policies and processes
• Occupational Health and Safety/Risk Management
training to be provided for managers and Occupational
Health and Safety representatives
• improve Occupational Health and Safety reporting within
the organisation to include performance indicators
measuring the engagement of staff with Occupational
Health and Safety improvement programs.
There were no reportable incidents requiring notification
to WorkSafe during the year.
CRITICAL INCIDENT STRESS
MANAGEMENT PROGRAM
The Critical Incident Stress Management Program (CISM)
provides debriefing, defusing, staff stocktakes and individual
support to staff following incidents, including threats and
assaults on staff. CISM continues to be accessed by staff
across the service.
The program was provided by 19 team members in 2005-
2006. Four refresher training courses were held during the
year for all CISM team members, and promotion of the
program is now established as a routine component of our
staff orientation and aggression management training
programs.
250
200
150
100
50
Utilisation of Critical Incident Stress
Management Program
0
53 196 160 127
9
2002-
2003
2003-
2004
Note - In 2002-2003 the Critical Incident Stress Management program was supported
by additional sessions provided by an external consultant which are not included in the
recorded Critical Incident Stress Management data.
EMPLOYEE ASSISTANCE PROGRAM
Forensicare provides an Employee Assistance Program,
which enables all staff and their immediate family access
external, confidential counselling and support. During the
past year, staff utilisation of the program was 4.6%, a
decrease from 7.7% in 2004-2005 (across all industries, the
average utilisation rate of these services is 4%). The usage
rate reflects a strong reputation for making a positive impact
on staff. The Employee Assistance Program is available in
addition to the services available through the Critical
Incident Stress Management Program.
CODE OF CONDUCT
2004-
2005
Forensicare acts in accordance with the Code of Conduct
for the Victorian Public Sector, August 2003.
PROTECTING OUR STAFF –
INFECTION CONTROL
30
No. of staff support interventions
18 15
2006-
2007
No. of incidents
Forensicare has a strong commitment to protecting our
staff. An Infection Control Committee, which includes the
Infection Control Manager and a microbiologist from Austin
Hospital, is responsible for minimising the risk of infection
within Forensicare. The Committee has developed
organisation-wide infection control manuals and established
a contractual arrangement with the Austin Hospital to
provide relevant education and support to Forensicare.
A 'Community Immunity' initiative operates to provide staff
with free screening and immunisation. Free flue vaccinations
are provided for staff, and there has been a significant
increase in staff using this program (from 36 staff in 2003-
2004 to 71 staff in 2005-2006). Other immunisations
available include Tetanus, Diptheria, Varicella, Measles,
Mumps, Rubella, Hepatitis B and Polio.
47

SECURITY
Forensicare has an obligation to ensure the safety and
security of patients, their visitors and all staff, and that of the
general community. This obligation is given a high priority
across the organisation.
Security technology at Thomas Embling Hospital is
complemented by aware and alert staff. All hospital staff
receive ongoing security training and participate in regular
security drills. Feedback on each drill is circulated to all staff
to ensure that any issues arising from the drill are
disseminated across the organisation.
Visitors are advised in writing (this information is available in
a range of community languages) of security requirements
at Thomas Embling Hospital, including what items are
allowed to be taken in to the hospital. All visitors are
scanned to prevent contraband items from entering the
hospital. In 2005-2006 there were 5,184 family visitors to
the hospital, and 1,020 items of contraband detected at the
hospital entrance (in 2004-2005 there were 4,384 family
visitors and 1,188 items detected). While the contraband
items detected range from minor items such as cutlery and
cameras through to scissors and knives, detection of items
makes the environment more safe and secure for everyone.
SECURITY REVIEW
Security technology is evolving rapidly and while upgrades
and enhancements are necessary on an ongoing basis,
major upgrades are required every 6-7 years. To ensure
compliance with our security obligations, it is critical that our
security technology and equipment is well maintained and
contemporary.
Two external security reviews were undertaken during 2005-
2006 on the quality and ongoing capacity of the present
security technology system within Thomas Embling
Hospital. The existing system has been operational for six
years and is becoming increasingly challenging to support
and maintain. The reviews confirmed that in terms of
maintaining security at Thomas Embling Hospital, the most
pressing requirement is the upgrade of the Security
Management System. Funding for this major upgrade will
be sought in the coming year to ensure that the system is
contemporary and operating at optimal functionality (see
Future Directions, below).
Additional funding of $245,000 was received from the
Department of Human Services during the year to upgrade
a number of components of the security system. These
upgrades will be installed in 2006-2007
These works will complement security enhancements
undertaken in 2005-2006, including improvements to car
park security (following the theft of vehicles) and the staff
and visitor ID card system.
ONGOING SECURITY AUDITS
Security at Thomas Embling Hospital is constantly
monitored. Formal audits of the following critical areas
were undertaken in 2005-2006 –
• Emergency Management
• Security Management
• Static Security
• Dynamic Security.
SECURITY BREACHES
While every effort is made to prevent security incidents and
breaches occurring, they are anticipated and inevitable in a
secure forensic inpatient facility. During the year incidents at
Thomas Embling Hospital have ranged from patients
breaching various security systems, thereby activating
alarms, to involvement in drug-related activities. All incidents
have been effectively managed. There were no major
security breaches or escapes during the year.
FUTURE DIRECTIONS
Subject to funding, upgrade the Security Management
System in line with recommendations of the security reviews
conducted in 2005-2006.
Registering on the Iris Recognition System for entry to Thomas
Embling Hospital
Scanning of items being taken in to Thomas Embling Hospital
48

OUR PEOPLE
ATTRACTION AND RETENTION OF
APPROPRIATELY SKILLED STAFF
Forensicare maintained established nursing staffing levels
during the year and was able to recruit to short term
planned absences. This avoided costs associated with
agency staff usage. The reorganisation of the psychology
area, which commenced in 2004-2005, was further
consolidated in the past year. Representatives from
Forensicare attended the Junior Medical Employment Expo
in June 2006 to promote opportunities available in forensic
mental health training for hospital medical officers and
medical registrars.
Academic links are well established in the disciplines of
nursing, medicine and psychology. During the year we
continued to progress the establishment of academic links
with educational institutions in the areas of occupational
therapy and social work. In particular -
• An academic association has been established with
School of Occupational Therapy, Monash University,
to provide professional development and support to our
program
• A chief social worker was successfully recruited to the
organisation. The appointee is currently completing
a doctorate at The University of Melbourne.
STAFF CLIMATE SURVEY
Forensicare agreed to participate in the State Services
Authority ‘People Matter Survey’ in early 2006. This is a
state-wide public sector survey that monitors employee
confidence in the application of the public sector values and
employment principles. The survey also gathers information
on a broad range of people management issues, including
job satisfaction and the ways in which organisations,
managers and work groups operate. Forensicare had a
38% participation rate, which will enable us to benchmark
our results with other health and public sector organisations
(the threshold participation for benchmarking purposes was
30%). The results of the survey are to be released in August
2006.
Workforce Profile
30 June 2006 30 June 2005 30 June 2004 30 June 2003
Class Staff Number Total EFT Staff Number Total EFT Staff Number Total EFT Staff Number Total EFT
CLINICAL STAFF 258 230.2 238 223.0 239 219.2 222 210.0
Nursing 180 167.9 166 159.1 171 161.5 154 149.5
Clinical Support 14 11.2 14 12.1 17 12.8 17 14.1
Allied Health
Psychologist 17 13.10 14 11.74 8 8.0 11 10.6
Social Worker 8 7.60 9 8.64 10 8.6 8 7.8
Occupational Therapist 7 5.60 6 6.0 5 5.0 6 6.0
Consumer Consultant 2 0.89 2 0.89 2 0.9 2 0.8
Family Advocate 1 0.53 1 0.53
Welfare Worker 1 1.0 1 1.0 1 1.0 1 1.0
Allied Health Total 36 28.7 33 28.8 26 23.5 28 26.3
Medical
Consultants/Medical 21 15.4 18 16.0 18 14.4 16 13.1
Registrars 7 7.0 7 7.0 7 7.0 7 7.0
Medical Total 28 22.4 25 23.0 25 21.4 23 20.1
CORPORATE/ADMINISTRATION
Administration 16 14.4 16 14.8 15 13.8 16 13.3
Corporate Support 12 10.3 14 11.7 13 10.5 13 10.6
TOTAL STAFF 286 254.9 268 249.5 267 243.5 251 233.9
49

WorkCover
Number of new injuries Days lost due to new injuries WorkCover Claims Cost
2004-2005 67 299 $1,438,837
2005-2006 87 409 $1,274,171
50
The number of new injuries and associated days lost
increased in 2006. It is important to note however, that 50%
of the days lost related to one claim. Despite an increase in
new injuries, the total Workcover claims costs for the year
reduced 11.4% from 2004-2005. The WorkCover claims
costs incorporate costs for claims lodged in the past three
financial years. A reduction in claims costs indicates a
reduction in costs of longer term claims pertaining to 2003-
2004 and 2004-2005. In keeping with the recent WorkSafe
initiative designed to reduce the burden of WorkCover costs
to employers, it is anticipated that the WorkCover Premium
for 2005-2006 (due to be finalised in September 2006) will
increase slightly from 2004-2005.
MERIT AND EQUITY
The principles of Equal Employment Opportunity (EEO) are
supported and maintained by Forensicare. During the past
year the recruitment policy was reviewed and amended to
ensure that the appointment of staff is based on merit, and
that the recently updated guidelines of the State Services
Authority have been adopted. The recruitment process
ensures that fair and reasonable treatment has been
accorded to all applicants.
EQUAL EMPLOYMENT OPPORTUNITY
Forensicare has established processes to ensure that the
Public Sector Principles of Employment are promoted.
These principles are –
• employment decisions are based on merit
• employees are treated fairly and reasonably
• equal employment opportunity is provided
• employees have a reasonable avenue of redress
against unfair or unreasonable treatment
• the development of a career in the public service
is fostered.
Training in the prevention of discrimination, bullying and
harassment has been provided to the nominated Contact
Officers across the organisation. These Officers provide
information and support to Forensicare staff in relation to
discrimination, harassment or bullying claims. In 2006 -2007
a project will be undertaken to raise staff awareness of the
role of the Contact Officer.
EMPLOYEE REMUNERATION AND
BENEFITS
During the past year, the Australian Taxation Office
endorsed Forensicare as a deductible gift recipient
and the option of staff salary packaging was introduced
in November 2005. A salary packaging provider was
appointed to assist with the smooth implementation
and ongoing provision of services, and all full and part-time
Forensicare employees are now able to access salary
packaging.
Forensicare have adopted the 2005 policy set by
Government Sector Executive Remuneration Panel that is
also endorsed by the Department of Human Services for
executive remuneration.
EMPLOYEE RELATIONS
The Workplace Consultative Committee continued to meet
on a monthly basis in 2005-2006. The Committee provides
a formal mechanism for consultation between employees
and management representatives on matters relating to the
employee and employer relationship (including
organisational change).
Training and coaching support was provided to managers
to support the effective implementation of Forensicare’s
disciplinary policy and processes.
Negotiations for the next Victorian Institute of Forensic
Mental Health Enterprise Bargaining Agreement will
commence towards the end of the 2006 financial year.
The current Agreement expires in September 2007.
BUILDING ON OUR KNOWLEDGE –
WE CONGRATULATE OUR STAFF
• Richard Paul, Courtney Dunn, Courtney Neil, Eniola
Akintola, Dianne Welton, Kye Mitchell, Janice Cheslin,
Denise Moate, Cara Wilkins, Dorota Markiewicz, Chris
Jermyn and Faith Valentine completed a postgraduate
qualification in psychiatric nursing.
• Ros Young, a nurse at Thomas Embling Hospital,
completed a Bachelor Nursing (Hons). Her major work
was on ‘Factors involved in the administration of PRN
psychotropic medications by registered nurses on an
acute all-male forensic psychiatric ward’.
• Grant Burkitt, a Social Worker at Thomas Embling
Hospital, completed his Bachelor of Social Work with
First Class Honours. His thesis was on ‘Self-efficacy and
Belonging in Recovery from a Mental Health Problem’.
• Jennifer McGrail was awarded a Doctor of Psychology
(Forensic) from the University of Melbourne. Her thesis
was ‘An Investigation into the Treatment of
Posttraumatic Stress Disorder with Comorbidity’,
supervised by Associate Professor Grant Devilly.
• Ann Davidson completed a Doctor of Psychology
(Clinical) from Monash University. Her thesis was
‘The Adjustment of Police Officers and Their Partners:
The Role and Determinants of Trauma Disclosure’,
supervised by Associate Professor Ellen Berah and
Dr Simon Moss.

SOCIAL PERFORMANCE
PROVISION OF INFORMATION
Forensicare is committed to providing consumers, service
users and Government with comprehensive and timely
access to information about its services. With a focus on
providing information and rights, a range of strategies have
been adopted to ensure patients and clients are aware of
their rights and legal status. These strategies include the
provision of written information to patients and clients and
the employment of consumer consultants, a family
advocate and consumer advisers.
The written information made available to all patients and
clients is also made available to service users, family
members and key stakeholders in printed and electronic
form.
FAMILY SENSITIVE PRACTICE
COMMITTEE
The Family Sensitive Practice Committee is an organisationwide
committee that meets monthly to promote family
sensitive practice across Forensicare. The Committee
organises twice yearly professional education sessions for
staff, and in 2005-2006 a 1-day workshop was held on
‘Engaging Families: Is It Worth the Effort?’ (facilitated by
Bouverie Centre). The workshop was attended by 18 staff.
A data base was established on the Forensicare intra-net
in 2005-2006, which enables all to staff to access relevant
information on community services and supports for families
and carers. In addition, the Family Sensitive Practice
Committee organises special one-off functions throughout
the year for family and friends. A family barbeque is
organised at Christmas, to which all families are invited.
In 2005, 45 family members, together with children and
patients attended the barbeque.
FAMILY AND FRIENDS
Forensicare acknowledges the important role that family,
friends and carers have in supporting a person with a
mental illness. Guided by the Family Sensitive Practice
Committee, a Family Advocate operates across the
organisation to identify the needs of families and carers, and
to inform and enhance our service provision. The Advocate
provides vital support, linkages and advocacy to family
members and carers of our patients and clients. Specific
initiatives provided in 2005-2006 include –
Newsletter
A Family and Friends Newsletter was introduced in 2005-
2006. Published quarterly, copies are made available to all
visitors to Thomas Embling Hospital. The Newsletter
contains information on developments within the hospital
and the community, together with notice of forthcoming
events, both within Forensicare and the community.
COMMUNITY NETWORKS
Forensicare’s involvement with community agencies and
activities a vital component of our community education
platform. In addition to enhancing community
understanding of forensic mental health, our work within
the community facilitates improved community transition
options for patients and clients. In 2005-2006, we
participated in the two street festivals organised by the
communities in which Thomas Embling Hospital and the
Community Forensic Mental Health Service are located
(Station Street Fiesta, Fairfield, and the Sydney Road
Festival, Brunswick). Participation in these festivals gives
Forensicare wide community exposure and provides
information on our services and forensic mental health
to members of the local community.
Staff at the Forensicare stall, Station Street Fiesta, Fairfield
Forums
Family and Friends Forums are held bi-monthly, providing
information and support sessions to the families and friends
of patients at Thomas Embling Hospital. For the
convenience of those attending, the forums are held
between 12 noon and 1pm on a Saturday, and guest
speakers cover a range of topics. Over the past year
sessions have been provided on ‘Dual Diagnosis – Mental
Illness and Substance Abuse’, ‘Managing Difficult
Behaviour’, ‘The Legal System and People with a Mental
Illness’ and ‘Living with a Mental Illness’.
51

52
OUR ENVIRONMENT
Forensicare is committed to responsible environmental
management and operating in a manner that protects the
environment and is consistent with state and national
standards. To achieve this, we will –
• adopt measures to improve energy efficiency
• implement efficient waste reduction and resource use
initiatives
• improve the emission performance of our vehicle fleet
• increase the use of reclaimed and storm water.
ENVIRONMENTAL SUSTAINABILITY
STRATEGY
The Environmental Sustainability Strategy 2005-2007
continued to provide the blueprint for environmental
initiatives undertaken by Forensicare during the year.
Initiatives planned for 2006-2007 include –
• review the Environmental Sustainability Strategy to
ensure continuity and further enhancement in coming
years
• audit the Environmental Sustainability Processes
in February 2007
• publish sustainability policies and procedures for key
stakeholders and the public on Forensicare’s website.
These initiatives will be led by the Corporate Governance,
Remuneration, Social Responsibility and Planning
Committee.
Objective –
ADOPT MEASURES TO IMPROVE
ENERGY EFFICIENCY
ENERGY REDUCTION INITIATIVES
Council approved the acceptance of a loan from the
Department of Human Services, repayable over 5 years,
to implement a range of energy reduction initiatives
proposed by Forensicare. Implementation of the initiatives
commenced during the year, and will be completed in the
latter half of 2006. The energy reduction initiatives covered
by the loan include the installation of ceiling insulation,
a pool thermal blanket, a lighting power control system,
daylight sensing system and occupancy sensors in selected
areas and water regulators in showers and hand basins.
2005-2006* 2004-2005 2003-2004 Percentage
Movement
Electricity Usage - kWh 1,770,281 1,692,383 1,400,257 26.43%
Gas Usage - MJ 8,109,674 7,789,998 7,447,656 8.89%
* The Transitional Accommodation Program was established in 2004-2005, providing
accommodation for patients preparing for community transition. 2005-2006 was the
first full year of operation of this program. In addition, the external night lighting of
buildings adjacent to Thomas Embling Hospital and the staff carpark was enhanced
during the year in keeping with security requirements.
Objective –
IMPLEMENT EFFICIENT WASTE
REDUCTION AND RESOURCE
USE INITIATIVES
RECYCLING BINS
The Environmental Strategy Committee approved funding
for the purchase of separate recycling bins for plastic
bottles within Thomas Embling Hospital. These bins will
be installed in the hospital grounds and the Administration
Building during 2006-2007.
COMPOSTING OF ORGANIC WASTE
The composting of organic waste generated by kitchens
in Thomas Embling Hospital will commence in 2006-2007.
This initiative has been generated by hospital staff and
patients participating in the horticulture program. Compost
generated will be used on hospital garden beds.
CLINICAL WASTE
Clinical waste across Forensicare is disposed of safely and
securely in accordance with guidelines established by the
National Health and Medical Research Council.
PAPER RECYCLING
The recycling of high grade paper continues across
Forensicare. A percentage of this paper is now being
diverted to the composting program in Thomas Embling
Hospital. Measures to record the amount of paper being
composted have not yet been developed, but will be
established in 2006-2007.
Planned for 2006-2007 –
• Forensicare is undertaking a printer replacement
program, which will replace existing printers with those
capable of double-sided printing
• Enhanced paper usage and recycling initiatives will be
incorporated in an overall staff awareness program that
will be included in the Environmental Sustainability
Strategy.
2005-2006 2004-2005 2003-2004 Percentage
Movement
Reams of paper used 2,511 2,438 2,502 0.36%
Reams of paper used
per fte* 9.85 9.77 10.28 4.18%
Paper recycled per kg 4,180 3,860 3,450 21.16%
* fte – full time equivalent staff
COMPUTER RECYCLING
The Computer Recycling Program continued during 2005-
2006, and was enhanced by the introduction of recycling
of computer cabling and disks.

Objective –
INCREASE THE USE OF
RECLAIMED AND STORM WATER
FEASIBILITY STUDY –
SEWER TREATMENT PLANT
Forensicare participated in a feasibility study conducted
by Parks Victoria for the installation of a sewer treatment
plant to provide water for Yarra Bend Park. If the proposal
proceeds, we will provide the treatment plant with sewerage
discharge from Thomas Embling Hospital. In turn, Forensicare
will have access to water supplied from the treatment plant for
appropriate use as reclaimed water. The feasibility study has
been completed and submitted to Parks Victoria for
consideration, and we await advice of the outcome.
WATER RESTRICTION COMPLIANCE
Forensicare complied with the water restrictions introduced
by the Victorian Government in 2005-2006. Water
regulators will be installed in showers and hand basins.
These will be installed across the organisation in 2006-
2007.
Planned for 2006-2007
• Use of a ‘Water from Air’ drinking fountain will be trialled
in the Thomas Embling Hospital reception area. ‘Water
from Air’ drinking fountains extract water from the air,
then cool, purify and dispense. If successful, the existing
water fed fountains throughout the organisation will be
replaced.
Units of water consumed
2005-2006 2004-2005 2003-2004 Percentage
Movement
Water Consumed -
kLitres 10,564 11,415 13,394 21.13%
Units of water consumed
per consumer* 24.12 27.24 32.11 24.88%
* consumer – includes staff, patients and onsite contractors
Objective –
IMPROVE THE EMISSION
PERFORMANCE OF OUR
VEHICLE FLEET
Initiatives implemented in 2005-2006 –
• The use of vehicles and fuel consumption continued
to be closely monitored during the year. Monthly
management reporting on vehicle usage was introduced
for distribution to line managers to enhance monitoring
across the organisation.
• Three hybrid (electric-petrol) vehicles were purchased
and introduced to the vehicle fleet late in 2005-2006.
We anticipate that the use of these vehicles will have a
positive impact on the performance of our vehicle fleet.
2005-2006 2004-2005 2003-2004 Percentage
Movement
Fuel Consumption 64,195 54,003 44,431 44.48%
Kilometres travelled 469,150 407,968 320,751 46.27%
Energy consumption
per vehicle* 161.94 136.76 111.93 44.68%
*This data is calculated using the Environment Protection Authority, Victoria, Greenhouse
Emissions Calculator. The increase in fuel consumption, kilometres travelled and energy
consumption per vehicle reflects the introduction of the statewide service, Care Plan
Assessments Victoria, in 2004-2005.
Thomas Embling Hospital
53

Corporate Governance
54
FORENSICARE’S CORPORATE
GOVERNANCE PRINCIPLES
• Have a Council of effective composition, size and
commitment to adequately discharge its responsibilities
and duties.
• Recognise and publish the respective roles and
responsibilities of Council and management.
• Actively promote ethical and responsible decisionmaking.
• Have a structure to independently verify and safeguard
the integrity of the Institute’s financial reporting.
• Promote timely and balanced disclosure of all material
matters concerning the Institute.
• Respect the rights of consumers, service users and
Government and facilitate the effective exercise of those
rights.
• Establish a sound system of risk oversight and
management and internal control.
• Fairly review and actively encourage enhanced Council
and management effectiveness.
• Ensure that the Institute functions in a manner which
is consistent with public sector values, employment
practices and policies.
• Recognise legal and other obligations to all legitimate
stakeholders.

Corporate Governance Principles and Disclosure Requirements
Page
Principle 1: Have a Council of effective composition, size and commitment to adequately
discharge its responsibilities and duties.
1.1 Incorporation of Council 56
1.2 Composition of Council 56
1.3 Membership and Expertise of the Council 57-58
1.4 Committees of Council 59-62
1.5 Independent Advice 63
Principle 2: Recognise and publish the respective roles and responsibilities
of Council and management
2.1 Role of the Council 56
2.2 Delegation of Authority 56
2.3 Governance Structure 65
2.4 Management Team 66
2.5 Forensicare Executive 66
Principle 3: Actively promote ethical and responsible decision-making
3.1 Code of Conduct 59
3.2 Council Rules 59
3.3 Ethics 59
Principle 4: Have a structure to independently verify and safeguard the integrity
of the Institute’s financial reporting.
4.1 Financial Governance 63
4.2 Declaration by Chief Executive Officer and Chief Finance and Accounting Officer 63
4.3 Structure of Audit Committee so it contains:
• Only non executive directors
• An independent chairperson, one who is not chairperson if the Council
• At least three members 59
4.4 Audit Committee Charter 60
4.5 Audit program 63
4.6 Audit scope 63
4.7 Audit planning 63
4.8 Audit program 2005-2006 63
Principle 5: Promote timely and balanced disclosure of all material matters concerning the Institute.
5.1 Reporting Compliance 64
Principle 6: Respect the rights of consumers, service users and Government
and facilitate the effective exercise of those rights.
6.1 Design and disclose a Communication Strategy 41
6.2 Request that the External Auditor attends Council or Committee Meetings 64
6.3 Consumers and service users requirements 51
Principle 7: Establish a sound system of risk oversight and management and internal control.
7.1 Approach to risk management 64
7.2 Roles and responsibilities 59
7.3 Assurance, review and risk evaluation 64
7.4 Compliance framework 64
Principle 8: Fairly review and actively encourage enhanced Council and management effectiveness.
8.1 Performance evaluation of Council, Committees and Key Executives 59
8.2 Responsible Committee 60
Principle 9: Ensure that the Institute functions in a manner which is consistent with
public sector values, employment practices and policies.
9.1 Institute’s Remuneration Policy 64
9.2 Employment practices and policies 64
9.3 Responsible Committee 60
Principle 10: Recognise legal and other obligations to all legitimate stakeholders.
10.1 Legislative compliance policies 64
10.2 Disclosure requirements: 67
• Building and maintenance
• Maintenance
• Conformity
• National competition policy
• Disclosure index
• Consultants
• Freedom of Information
• Whistleblower’s Act
• Availability of other information
10.3 Responsible Committee 60 55

CORPORATE GOVERNANCE
FRAMEWORK
The Institute of Forensic Mental Health has adopted a
corporate governance framework that incorporates a set
of principles and behaviours that underpin our everyday
operations to ensure transparency, fair dealing and
protection for consumers, service users, Government
and stakeholders.
A wide ranging review of corporate governance structures
was undertaken by Council during 2005-2006 to ensure
that the Institute’s activities incorporate best practice
governance standards. The recommendations of the review
are consistent with the Standing Directions for the Minister
for Finance, the Department of Human Services
expectations of public hospital governance arrangements
and contemporary initiatives in private sector governance.
On the basis of the review recommendations, Council
implemented a new governance framework which included –
• the adoption of 10 principles (Governance Statement)
• implementation of a new governance structure,
including Council Committees, Charter, Rules and
Guidelines.
VICTORIAN INSTITUTE OF FORENSIC
MENTAL HEALTH COUNCIL
The Victorian Institute of Forensic Mental Health was
established in December 1997 by a detailed amendment
to the Mental Health Act 1986. The amendment also
established the Victorian Institute of Forensic Mental Health
Council as the governing body of the Institute and details
the functions of the Council. The ten member Council is
appointed by the Minister for Health and reports quarterly
on the operation and performance of the Institute.
COMPOSITION OF COUNCIL
The composition of the Council is detailed in the Mental
Health Act 1986 (s.117F), and consists of the Clinical
Director and Chief Executive Officer of the Institute, together
with nominees of the Attorney-General and the Minister for
Corrections. At least one Council member is required to be
a fellow of the Royal Australian and New Zealand College
of Psychiatrists, and one person is to have accountancy
or financial management experience.
ROLE OF THE COUNCIL
The role and functions of the Victorian Institute of Forensic
Mental Health Council are established by legislation
(s.117C, s.117E, Mental Health Act 1986). The Council
is responsible for the overall corporate governance of the
Institute, including the strategic direction and monitoring
of performance.
DELEGATION OF AUTHORITY
The Council delegates authority, other than its power of
delegation, to the Chief Executive Officer or to Committees
and never neglects its responsibility for the outcome. Dayto-day
responsibility for the service and its success is
delegated to the Chief Executive Officer.
56

COUNCIL MEMBERS
The Hon. Jim Kennan, SC
• Chair
• LLM
• Appointed as Chair to Council in May 2001 for a three year period as
Non-Executive Director. Reappointed in April 2004 for a further 3 years.
• Chair of the Finance Committee and member of Corporate Governance,
Remuneration, Social Responsibility and Planning Committee.
• Senior Counsel practising at the Victorian Bar and an Adjunct Professor
of Law at Deakin University.
• Director, Stolen Generations Victoria Ltd, member of the Council of the
Australian Community Support Organisation.
The Hon. Justice Bernard Teague
• Deputy Chair
• BA, LLB(Hons)
• Initially appointed to Council in April 1998 as Non-Executive Director.
Reappointed for a 3 year term in May 2001, and in July 2004 for a further
3 years.
• Chair of the Research Committee.
• Attorney General’s nominee on the Council.
• Principal Judge of the Criminal Division of the Supreme Court of Victoria
and Deputy Chairman, Adult Parole Board.
Michael Burt
• BA, BSW(Dist)
• Appointed to Council in April 1998 as Executive Director.
• Chair of the Quality Improvement and Clinical Ethics Committee and member
of the Finance Committee, Audit and Risk Management Committee and
Corporate Governance, Remuneration, Social Responsibility and Planning
Committee.
• Chief Executive Officer, Victorian Institute of Forensic Mental Health.
Professor Paul Mullen
• MB BS, DSc., FRANZCP, FRC Psych
• Appointed to Council in April 1998 as Executive Director.
• Member of the Quality Improvement and Clinical Ethics Committee
and Research Committee.
• Clinical Director, Victorian Institute of Forensic Mental Health and Professor
of Forensic Psychiatry at Monash University.
• Formerly Professor of Psychological Medicine at the University of Otago
(1982–1992), and Consultant Psychiatrist to the Royal Bethlem and Maudsley
Hospitals and Senior Lecturer at the Institute of Psychiatry, London.
Dr Joan Clarke, OAM
• BEd, BA Hons 1st class, PhD.
• Appointed to Council on 23 May 2006 for a 3 year period as Non-Executive
Director.
• Member of Corporate Governance, Remuneration, Social Responsibility
and Planning Committee.
• Member of the Ministerial Advisory Committee Mental Health (Vic)
and formerly Executive Director, Prahran Mission (1989-2005).
• Appointed to Council to represent the interests of patients.
57

Associate Professor Peter Doherty, PSM
• MB BS, FRANZCP
• Appointed to Council on 23 May 2006 for a 3 year period as Non-Executive
Director.
• Member of Quality Improvement and Clinical Ethics Committee.
• Honorary Clinical Associate Professor, Monash University and Medical
Director, The Victoria Clinic.
• Formerly Director of Psychiatry, The Alfred.
• Appointed to Council as a fellow of the Royal Australian and New Zealand
College of Psychiatrists.
Tony Goad
• BBus(Accountancy)
• Appointed to Council for a 3 year period in May 2001 as Non-Executive
Director, and reappointed in April 2004 for a further 3 years.
• Chair of the Information Management/Technology Committee and member
of the Audit and Risk Committee and Finance Committee.
• Associate Director of a healthcare consultancy company and formerly Chief
Finance Officer and Chief Information Officer of the Southern Health Care
Network, Victoria.
Una Gold
• BA, BEd, MBA
• Appointed to Council for a 3 year period in May 2001 as Non-Executive
Director, and reappointed in April 2004 for a further 3 years.
• Member of the Audit and Risk Management Committee and Finance
Committee.
• Deputy Chair of the Victorian Casino & Gaming Authority and Chair
of the Authority’s Internal Audit Committee.
• Formerly a senior officer in the Department of Treasury and Finance
and a consultant and a financial analyst in private industry.
Terry Laidler
• BA(Hons), LLB, Registered Psychologist
• Initially appointed to Council in April 1998 as Non-Executive Director.
Reappointed for 2 years in April 2001, a further 3 year period in May 2003
and in May 2006 was reappointed for another 3 years.
• Chair of the Corporate Governance, Remuneration, Social Responsibility
and Planning Committee, and member of the Audit and Risk Management
Committee and Information Management/Technology Committee.
• A psychologist and communications consultant, he is an honorary research
fellow in the School of Business and Economics, Monash University, and was
formerly Associate Professor of Communications at RMIT and a radio
broadcaster.
• Member of the Victorian Civil & Administrative Tribunal and the Adult Parole
Board, and chair of the Independent Assessment Committee of the
Smartwater Fund and the Port of Melbourne Channel Deepening Project
Stakeholder Advisory Committee.
58

RETIREMENTS AND NEW
APPOINTMENTS
The following occurred in 2005-2006 –
Retirements – Dr Robert Adler, appointed to Council on
23 May 2003 retired on 22 May 2006, and Judith Player,
appointed to Council as a foundation member on 1 April
1998 to represent the interests of patients, retired on
22 May 2006.
Resignation – David Ware, appointed to Council on
10 July 2004 as the nominee of the Minister for Corrections,
resigned from Council on 7 April 2006. At 30 June 2006 the
Minister for Corrections had not announced a replacement
member.
New Appointments – Dr Joan Clarke was appointed
to Council on 23 May 2006 to represent the interests of
patients; Associate Professor Peter Doherty was appointed
to Council on 23 May 2006 as a fellow of the Royal
Australian and New Zealand College of Psychiatrists.
COUNCIL MEETINGS
Council meetings are held monthly, with the exception of
December and January. Formal minutes of all meetings
recording the decisions of Council are maintained.
Additional meetings are convened when circumstances
warrant, but no additional meetings were held in 2005-
2006.
CODE OF CONDUCT
The Victorian Institute of Forensic Mental Health Council
has adopted the Australian Institute of Company Director’s
Code of Conduct to guide Council Members. Senior
management is guided by the Code of Conduct established
by the State Services Authority. Forensicare has developed
and implemented a Financial Code of Conduct to assist
Council and staff on matters related to the probity of the
Institute’s financial management.
COUNCIL RULES
The Council is committed to the highest standard of
corporate governance practice and has adopted a set of
Council Rules outlining the ethical responsibilities, practice
and conduct of Council.
ETHICS
Members of Council are required to act with integrity at all
times and in all dealings. They are required to declare any
pecuniary interest or conflict of interest during Council
meetings and must withdraw from proceedings where
necessary. There was one instance that required declaration
during the year.
REPORTING
The Victorian Institute of Forensic Mental Health is
committed to providing and maintaining a level of disclosure
that meets high standards and ensures that all stakeholders
have access to information.
The Council is required to prepare an annual Corporate Plan
for the Minister to guide the operation of the Institute over the
financial year (Mental Health Act 1986, s.117O). The
Corporate Plan must include a Statement of Corporate Intent,
a Business Plan and financial statements for the organisation.
The Statement of Corporate Intent is required to be included
in the Annual Report (s.117U) (see page 96-97).
A Quarterly Report is prepared for the Minister for Health
each quarter ending September, December, March and
June. The Quarterly Report details progress against agreed
initiatives and reports performance against agreed
measures.
The Institute has adopted policies to ensure that
compliance reporting under the Standing Directions
of the Minister for Finance is met.
PERFORMANCE EVALUATION OF
COUNCIL, COMMITTEES AND KEY
EXECUTIVES
In accordance with Australian Council on Healthcare
Standards, EQuIP accreditation requirements, Council and
Committees undertake an annual self evaluation exercise.
A detailed questionnaire is completed by Councillors and
committee members covering procedures, effectiveness
of meetings and workload. Councillors and committee
members are also required to evaluate their own
performance. Performance evaluations are conducted
annually by members of the Institute’s Executive.
COUNCIL COMMITTEES
The Victorian Institute of Forensic Mental Health Council has
established 6 Committees to provide specialist advice and
support to Council. The Committees and their charters were
restructured by Council in 2005-2006 to ensure that corporate
governance appropriately reflects Government policy and
organisation priorities, and is supported by strengthened
structures within the organisation. All Committees are
established in accordance with Council Rules.
AUDIT AND RISK MANAGEMENT
COMMITTEE
MEMBERSHIP
Michael Wright, BEcon (Hons), MSc Econ (IR) (Dist) Chair,
Tony Goad, BBus(Accountancy), Una Gold, BA, BEd, MBA,
Terry Laidler, BA (Hons), LLB, Registered Psychologist.
Michael Burt, BA. BSW(Dist), together with 1 senior staff
officer (John Daly) are standing invitation attendees. At 30
June 2006, two additional members are to be nominated
from Council to replace members who have resigned or
retired.
INDEPENDENCE
All members of the Audit and Risk Management Committee
are independent in accordance with the requirements of the
Standing Directions of the Minister for Finance under the
Financial Management Act 1994 (as part of the Financial
59

Management Package), Direction 2.2(f), Guideline 3. In
accordance with the Standing Directions, the Chair of the
Audit and Risk Management Committee is not the Chair of
the Victorian Institute of Forensic Mental Health Council.
To further enhance the independence of the Audit and Risk
Management Committee, Council appointed Michael Wright,
BEcon (Hons), MSc Econs (IR) (Dist) as Chair of the
Committee in 2005-2006. Mr Wright is independent of both
Council and management.
COMMITTEE MEETINGS
Meetings of the Audit and Risk Management Committee
are held bi-monthly. Attendance at these meetings in 2005-
2006 is detailed under Meeting Attendances.
CHARTER
The Audit and Risk Management Committee of Forensicare
operates under a Charter which details the purpose,
objectives and authority of the Committee, together with
areas of responsibility. The Committee is responsible for –
• financial performance, the financial reporting process
and preparation of the annual financial statements
(in conjunction with the Finance Committee)
• the scope of work, performance and independence
of internal and external auditors
• recommending the engagement and dismissal of any
internal audit organisation or executive
• the operation and implementation of the risk
management framework
• matters of accountability and internal control affecting
the operations of the Institute
• the effectiveness of management information systems
and other systems of internal control
• the acceptability of and correct accounting treatment for
and disclosure of significant transactions which are not
part of the Institute’s normal course of business
• the sign off of accounting policies
• the process for monitoring compliance with laws and
regulations and Code of Conduct and Code of Financial
Practice
• all matters listed under this section are to be reported
to the Council via the reporting process listed in this
Charter.
The full scope of Forensicare’s audit program is detailed
on page 63.
FINANCE COMMITTEE
MEMBERSHIP
The Hon. Jim Kennan SC, LLM, Chair, Tony Goad,
BBus(Accountancy), Una Gold BA, BEd, MBA, Michael
Burt, BA, BSW(Dist), together with 1 senior staff member
(John Daly) who is a standing invitation attendee.
INDEPENDENCE
Members of the Finance Committee are both Non Executive
and Executive Directors.
COMMITTEE MEETINGS
Meetings of the Finance Committee are held monthly.
Attendance at these meetings is detailed under Meeting
Attendances.
CHARTER
The Finance Committee of Forensicare operates under a
Charter which details the purpose, objectives and authority
of the Committee, together with the following areas of
responsibility –
• assist Council fulfil its financial and budgetary
governance responsibilities and Financial Management
Compliance obligations under the Standing Directions
of the Minister of Finance
• endorse the annual budget for Council approval prior
to submission to the Department of Human Services
• monitor (monthly) the financial stability of the Institute
• monitor compliance under the Financial Management
Compliance Framework
• report to Council on all matters listed under this section
via the reporting process listed in this Charter.
CORPORATE GOVERNANCE,
REMUNERATION, SOCIAL
RESPONSIBILITY AND
PLANNING COMMITTEE
MEMBERSHIP
Terry Laidler, BA(Hons), LLB, Registered Psychologist Chair,
The Hon. Jim Kennan SC, LLM, Dr Joan Clarke OAM, BEd,
BA Hons 1st class, PhD, Michael Burt, BA, BSW(Dist) (not a
member in matters relating to Remuneration component of
this committee), Michael Wright, BEcon(Hons), MSc Econs
(IR) (Dist) (member only when Remuneration is a component
of this meeting).
INDEPENDENCE
Members of the Corporate Governance, Remuneration,
Social Responsibility and Planning Committee are both
Non Executive and Executive Directors.
COMMITTEE MEETINGS
Meetings of the Corporate Governance, Remuneration,
Social Responsibility and Planning Committee are held
quarterly or as required. Attendance at these meetings
is detailed under Meeting Attendances.
CHARTER
The Corporate Governance, Remuneration, Social
Responsibility and Planning Committee of Forensicare
60

operates under a Charter which details the purpose,
objectives and authority of the Committee, together with
areas of responsibility. The Committee is required to –
• provide recommendations to Council concerning –
• the appropriate size, function, needs and
composition of the Committees,
• a remuneration strategy that is consistent with the
objectives and human resource needs of the
Institute and which complies with all applicable laws,
government policy; and best practice
• provide advice to the Council and Chair on –
• corporate governance matters, including developing
and recommending to the Council the Institute’s
corporate governance principles
• the self-evaluation process for the Council and its
committees
• required skills and expertise of Council members
to enable Council to operate effectively
• developments, trends and opportunities that may
influence the Institute’s ability to effectively serve
stakeholders
• provide input regarding Government policy and
service planning to address the needs of the
Institute’s clients and stakeholders
• assist Council fulfil its responsibilities relating to the
executive remuneration, performance and
employment policies and practices
• monitor progress and oversee development of the
strategic plan and Corporate Plan (under s.117O
of the Mental Health Act 1986).
QUALITY IMPROVEMENT AND
CLINICAL ETHICS COMMITTEE
MEMBERSHIP
Michael Burt, BA, BSW(Dist) Chair, Professor Paul Mullen,
MB BS, DSc, FRANZCP, FRC Psych, Dr Peter Doherty PSM,
MB BS, FRANZCP, together with 2 senior staff officers
(Karlyn Chettleburgh, Jo Chaplin).
INDEPENDENCE
Members of the Quality Improvement and Clinical Ethics
Committee are both Non Executive and Executive Directors.
COMMITTEE MEETINGS
Meetings of the Quality Improvement and Clinical Ethics
Committee are held quarterly. Attendance at these meetings
is detailed under Meeting Attendances.
CHARTER
The Quality Improvement and Clinical Ethics Committee
of Forensicare operates under a Charter which details the
purpose, objectives and authority of the Committee,
together with the areas of responsibility. The Committee
is required to –
• ensure that the Institute provides a high quality and
effective service, which meets the community’s
expectations for a high standard of care and security
provision; and that mechanisms are effectively and
ethically utilised to appraise structures, processes and
outcomes of services, with the aim of continually
improving the quality of the Institute’s activities
• oversee the development of policies and guidelines
on clinical ethical issues and monitor compliance with
these policies
• promote a culture of continuous service improvement.
RESEARCH COMMITTEE
MEMBERSHIP
The Hon. Justice Bernard Teague, BA, LLB(Hons) Chair,
Professor Paul Mullen, MB BS, DSc, FRANZCP, FRC Psych,
together with 4 senior staff officers (Dr Danny Sullivan, Ms
Karlyn Chettleburgh, Dr Patricia Martin, Professor James
Ogloff) and 1 external member (Dr Andrew Carroll).
INDEPENDENCE
Members of the Research Committee are both Non
Executive and Executive Directors as well as independent
from both Council and Management.
COMMITTEE MEETINGS
Meetings of the Research Committee are held as required.
Attendance at these meetings is detailed under Meeting
Attendances.
CHARTER
The Research Committee of Forensicare has operated
under a Charter which detailed the purpose, objectives and
authority of the Committee. At 30 June 2006, the Charter
for the Research Committee is under review and not
finalised.
INFORMATION MANAGEMENT
AND TECHNOLOGY COMMITTEE
MEMBERSHIP
Tony Goad, BBus(Accountancy) Chair, Terry Laidler,
BA(Hons), LLB, Registered Psychologist, together with
2 members of staff (John Daly, Glenda Cunningham) and
1 external member who has yet to be appointed.
INDEPENDENCE
Members of the Information Management and Technology
Committee are Non Executive and Executive Directors as
well as one independent member of both Council and
Management.
61

COMMITTEE MEETINGS
The Information Management and Technology Committee
was established during the year and held one meeting.
Future meetings of the Information Management and
Technology Committee will be quarterly or as required.
Attendance at the meetings is detailed under Meeting
Attendances.
CHARTER
The Information Management and Technology Committee
of Forensicare operates under a Charter which details the
purpose, objectives and authority of the Committee,
together with areas of responsibility. The Committee
is required to –
• provide guidance on the effective and efficient use of
existing and new technology
• monitor implementation of the findings of the
Information Technology Security Audits and compliance
with the Institute’s guidelines and procedures for
effective and efficient use of technology
• recommend information technology policy direction
to the Council for consideration and approval
• develop and maintain a technology plan that is
consistent with the needs and goals of the Institute,
and anticipates the future role and use of technology
in health.
MEETING ATTENDANCES
Council Finance Audit and Research Information Quality Corporate
Committee Risk Committee Management Improvement Governance,
Management + see note below and and Clinical Remuneration
Committee Technology Ethics Social
Committee Committee Responsibility
(formerly QI and Planning
Committee) Committee
++ see note below (formerly
Remuneration
Committee)
Jim Kennan 6 of 8 7 of 9 2 of 2
Justice Teague 7 of 8 1 of 5* +
Michael Burt 8 of 8 8 of 9 4 of 5** ++
Paul Mullen 8 of 8 + ++
Robert Adler 3 of 6
Joan Clarke 1 of 2
Peter Doherty 2 of 2 ++
Tony Goad 5 of 8 8 of 9 5 of 5 1 of 1
Una Gold 7 of 8 9 of 9 1 of 1
Terry Laidler 8 of 8 1 of 1 2 of 2
Judith Player 6 of 6 3 of 5 1 of 1
David Ware* 5 of 5 2 of 5
* Justice Teague resigned from the Audit and Risk Management Committee in December 2005
** Michael Burt is a standing invitation attendee at the Audit and Risk Management Committee
+ No formal Research Committee meetings were held during this period. Business was conducted and research proposals were circulated
electronically on 7 occasions during the year.
++ No Quality Improvement meetings were held during this period. The Quality Improvement Committee was restructured during the year,
and during this time the quality improvement function was managed by Council.
62

INDEPENDENT ADVICE
In pursuit of their duties, Council members, executive
officers, senior officers and senior clinicians may seek
independent professional advice as required at the expense
of the Institute.
FINANCIAL GOVERNANCE
In accordance with ‘Standing Directions of the Minister
for Finance under the Financial Management Act 1994’
(June 2003), Forensicare has a robust and transparent
model to oversee financial management of the organisation.
It is incorporated as a fundamental component of the
governance framework for the organisation. Within 2005-
2006 the Audit and Risk Management and Finance
Committees focussed on enhancing the systems of financial
reporting, risk management, internal control and the
adequacy of management reporting.
DECLARATION BY CHIEF EXECUTIVE
OFFICER AND CHIEF FINANCE AND
ACCOUNTING OFFICER
The Chief Executive Officer and Chief Finance and
Accounting Officer made a formal statement declaring that
the Institute’s financial report represents a true and fair view
in all material respects, in accordance with the ‘Standing
Directions of the Minister for Finance (Financial Management
Compliance Framework)’.
AUDIT PROGRAM
Within Forensicare, the Audit Program is an essential
element of monitoring risk, corporate governance,
compliance, clinical practices and financial performance.
The Audit Program encompasses -
External Audit
The Auditor General of Victoria provides an independent
review of the performance and accountability of the
Victorian Institute of Forensic Mental Health to Parliament
and the community of Victoria. The Audit Act 1994 is the
main legislation governing the powers and functions of the
Auditor-General.
Internal Audit
The international accounting firm, Deloittes, is responsible
for Forensicare’s internal audit function, which is an
invaluable resource in ensuring compliance and improving
the operations of Forensicare.
AUDIT SCOPE
The internal audit program provides for the evaluation
of the adequacy and effectiveness of Forensicare’s internal
controls and performance quality in carrying out its
responsibilities. The internal audit function includes all
Forensicare programs.
AUDIT PLANNING
An Audit Plan 2004-2009 has been developed by the
internal auditors, in conjunction with the Audit & Risk
Management Committee. The Audit Plan was developed
using a risk based approach, incorporating risks identified
in the Risk Management Audit conducted in 2004-2005,
and is in full compliance with all standards.
AUDIT PROGRAM 2005-2006
The following Internal Audits were undertaken in 2005-2006 –
• Financial Management Compliance Framework
• Taxation Compliance – Fringe Benefit Tax (FBT), Goods
and Services Tax (GST) and Pay as you Go Tax (PAYG)
• Purchasing Card Compliance
• A-IFRS (The Australian Equivalents to International
Financial Reporting Standards)
• Recruitment and Termination and Human Resources
• Asset Management
• Management Reporting
• Follow Up.
AUDIT PROGRAM 2006-2007
External
• Audit of Financial Statements – Auditor-General Victoria
Internal
• Compliance assessment of the Financial Management
Compliance Framework, Taxation Compliance
Framework and Credit Cards. This is an annual
compliance requirement.
• Specialist operational projects including –
Occupational Health and Safety – This project will
assess Forensicare’s Safety Management System
for compliance with internal policy and legislative
requirements.
Information Technology Strategic Planning and
Infrastructure – This project will assess the process
used to develop an Information Technology Strategic
Plan, including appropriate supporting information
technology infrastructure.
• Process projects including –
Corporate Governance processes – This project will
assess the improvements recently made to
Forensicare’s Corporate Governance processes.
Environmental Sustainability – This initiative will assess
the extent to which Forensicare has delivered on its
initiatives in line with the Environmental Sustainability
Strategy.
63

EXTERNAL AUDITOR (AUDITOR
GENERAL’S OFFICE) ATTENDANCE AT
COUNCIL OR COMMITTEE MEETINGS
The Institute’s External Auditors (the Victorian Auditor
General’s office) is invited to attend the Audit and Risk
Management Committee and/or the Council meeting on
completion of the Annual Compliance Audit. The Auditor-
General’s office is requested to provide information on –
• conduct of the audit
• preparation and content of the audit report
• accounting policies adopted by the Institute in relation
to the preparation of the financial statement.
RISK MANAGEMENT
The Institute approaches risk management by identifying,
assessing and managing risks that affect its business in
accordance with a set of core risk management values.
ASSURANCE, REVIEW AND RISK
EVALUATION
The Executive of the Institute provides assurance, review
and risk evaluation to the Council through the Audit and
Risk Management Committee, Quality Improvement and
Clinical Ethics Committee, Internal and External Audit
on the adequacy and effectiveness of management controls
for risk.
COMPLIANCE FRAMEWORK
The Institute’s compliance framework is driven by a series
of principles and practices -
• compliance is the responsibility of every staff member
• complying with both the letter and spirit of regulatory
standards
• embedding compliance in how the Institute conducts
its business
• accountability of senior management to ensure strong
compliance culture.
The primary responsibility for managing compliance risk
resides with business line management, who are required
to demonstrate that they have effective processes in place.
REMUNERATION POLICY
Council
Council members eligible for payment are remunerated in
accordance with the Guidelines for the Appointment and
Remuneration of Part-Time Non Executive Directors of State
Government Boards and Members of Statutory Bodies and
Advisory Committees (Department of Treasury and Finance).
Members of Council who are employed in a government
capacity are not eligible for payment.
Executive
Contracts (which incorporate performance requirements)
and salary ranges of executive staff of Forensicare comply
with the Government Sector Executive Remuneration Panel
Guidelines, which is also endorsed by the Department of
Human Services for executive remuneration.
EMPLOYMENT PRACTICES
AND POLICIES
Policies established by the State Services Authority on
Code of Conduct, Values and Public Sector Principles
of Employment have been adopted by Forensicare (see
pages ifc, 50, 64).
POLICIES AND PROCEDURES
The Institute has a comprehensive range of Policies and
Procedures to ensure that all legal obligations are met.
The Institute utilises the same legislative compliance tool
employed by other major public health sector providers
in Victoria.
VICTORIAN INDUSTRY PARTICIPATION
POLICY ACT
Contracts commenced in 2005-2006 to which the Victorian
Industry Participation Policy Act 2003 (VIPP) applied -
• Forensicare commenced one (1) contract totalling
$5.16m in value to which VIPP applied.
• The contract was a metropolitan based contract.
• The commitments by the contractor under VIPP
included -
• an overall level of local content of over 99% of the
total value of the contract
• a total of 24 full-time equivalent jobs.
64

ORGANISATION CHART
VIFMH Council
Chair – The Hon Jim Kennan, SC
Committees
Audit and Risk Management
Finance
Quality Improvement
and Clinical Ethics
Corporate Governance,
Remuneration,
Social Responsibility
and Planning
Research
Information
Management/Technology
Chief Executive Officer
Michael Burt
Legal Support
Tom Dalton/Carol Toop
Director of Nursing Practice
Dr Trish Martin
Security Management
Grant Johnson
Human Resources
Loretta Sheales
Business Services
John Daly
Financial Management
Procurement and Logistics
Information Technology
Payroll
Health Information
Glenda Cunningham
Policy, Planning, and
Executive Support
Sue Briggs, Mitali Gupta
Lisa McGowan
Clinical Director
Professor Paul Mullen
Director of Psychological
Services
Professor James Ogloff
Inpatient Services
General Manager
Karlyn Chettleburgh
Thomas Embling Hospital
Acute
Sub-acute
Rehabilitation
Contracted Management
Quality Improvement
Consumer and Carer
Participation
Security Management
Prison Mental Health Service -
Melbourne Assessment Prison
Other regional prisons
Community Forensic Mental
Health Services
General Manager
Jo Chaplin
Court Liaison Program
Problem Behaviour Program
Forensic Mental Health Program
Transitional Accommodation
Program
Community Integration Program
Forensic Mental Health Training
Consumer and Carer
Participation
Quality Improvement
Monash University
65

MANAGEMENT TEAM
Michael Burt, BA, BSW(Dist.)
Chief Executive Officer
• Appointed April 1998
• Responsible for the overall
operation and development
of Forensicare.
• A social worker, with almost 30
years experience in the criminal
justice system.
• Worked clinically with prisoners
and parolees, both in Australia
and the United Kingdom, before
moving to management positions
within corrections and forensic
health area.
• Instrumental in establishing
Forensicare as a statutory
authority.
Karlyn Chettleburgh, Registered
Psychiatric Nurse, Post Graduate
Diploma in Advanced Clinical Nursing
(Mental Health)
General Manager, Inpatient
Operations
• Appointed December 2001
• Responsible for the operation of
the Thomas Embling Hospital and
the prison mental health program.
• Extensive experience in the public
mental health system in Victoria,
working in both direct care and
management positions in a range
of mental health settings, including
mainstream inpatient services,
community mental health (including
Crisis Assessment Teams), rural
psychiatry and most recently,
forensic mental health.
Jo Chaplin, BBSc(Hons), MPsych,
Grad. Cert. Public Policy & Management,
MAPS.
General Manager, Community
Operations
• Appointed February 2004
• Responsible for the Community
Forensic Mental Health Service,
which incorporates a
comprehensive outpatient clinic,
court advice service and
transitional accommodation
program.
• A Clinical Psychologist, with clinical
and management experience in
government and non government
organisations that specialise in
forensic mental health and welfare,
which has included the
implementation of services aimed
at diverting drug users from the
criminal justice system and
transitional programs for offenders
with mental health and substance
use issues.
FORENSICARE EXECUTIVE
The Executive, a senior management advisory group within
Forensicare, meets monthly, with the exception of January.
Where relevant, the Chief Executive Officer provides reports
of these meetings to the Council. The Executive comprises –
• Michael Burt, Chief Executive Officer (chair)
• Professor Paul Mullen, Clinical Director
• Professor James Ogloff, Director of Psychological
Services
• Dr Douglas Bell, Assistant Clinical Director, (Inpatient)
• Sue Briggs, Senior Policy Adviser
• Jo Chaplin, General Manager of Community Operations
• Karlyn Chettleburgh, General Manager of Inpatient
Operations
• Tom Dalton, Corporate Lawyer
• John Daly, Manager of Business Support
• Loretta Sheales, Manager of Human Resources
• Dr Danny Sullivan, Assistant Clinical Director
(Community).
66

LEGISLATIVE COMPLIANCE
BUILDING AND MAINTENANCE
Forensicare complies with the Building Act 1993 under the
guidelines for publicly owned buildings issued by the Minister
for Finance 1994 in all redevelopment and maintenance issues.
MAINTENANCE
There are no maintenance orders.
CONFORMITY
All renovations to existing buildings conform to the Building Act
1993. All existing buildings comply with regulations in force at
the time of construction. There are no orders to cease
occupancy or to undertake urgent works. All sites are subject
to a Fire Safety Audit and Risk Assessment according to
revised standards as directed by the Department of Human
Services.
NATIONAL COMPETITION POLICY
Forensicare complies with Model 2 competitive neutral pricing
principles outlined in the documents ‘Competitive Neutrality –
A Statement of Victorian Government Policy’, ‘Victorian
Government Timetable for the Review of Legislative
Restrictions on Competition’ and ‘A Guide to Implementing
Pricing Principles’.
DISCLOSURE INDEX
The index identifying Forensicare’s compliance with statutory
disclosure requirements is provided on page 99.
CONSULTANTS
Consultants in excess of $100,000 -
Eclipse Computing (Australia) Ltd – provision of financial,
human resources, payroll and trust information systems
Total expenditure for 2005-2006 $139,456
Consultants costing less than of $100,000 –
Number of consultants engaged 11
Total cost engagements $45,388
FREEDOM OF INFORMATION
Forensicare complies with the Freedom of Information Act
1982 (‘the Act’). 99% of Freedom of Information requests
received in 2005-2006 were processed within the required
timeline. No fees were charged for accessing information
during the reporting period. During the year the following
requests were processed –
• A total of 19 Freedom of Information requests were
received
• One request was referred to the Prison Health Unit,
Department of Human Services, for action
• In 4 cases the information requested was released in full
• 14 requests for information had documents exempted
under s.31, s. 33(1), s.33(2A), s.33(4), s.33(9) and s.35(1)
of the Act
• 1 request was unable to be completed within the required
timeframe.
The practice within Forensicare is to personally hand
documentation released under Freedom of Information to the
person lodging the request, or to send the information by
registered mail. If a Freedom of Information request is pending
when a patient is discharged, a letter is sent to the last known
address of the patient requesting confirmation of residence.
During 2005-2006, one Freedom of Information letter
requesting residence confirmation was sent to a home
address. The requestor did not respond confirming the
address however and the information was therefore not
forwarded.
People wishing to access information should make a written
request to the Freedom of Information Officer, Victorian Institute
of Forensic Mental Health, Locked Bag 10, Fairfield, 3078.
WHISTLEBLOWER’S ACT
The Whistleblowers Protection Act 2001 came into effect
on 1 January 2002. Forensicare has adopted the model
procedures circulated by the Ombudsman for handling
disclosures, with some minor amendments.
Forensicare is committed to the aims and objectives of the
Whistleblowers Protection Act 2001. It does not tolerate
improper conduct by its employees or officers, nor the taking
of reprisals against those who come forward to disclose such
conduct. Disclosures of improper conduct can be made by
Forensicare staff or members of the public. We have had no
disclosures in the reporting year.
The Protected Disclosure Manager for Forensicare
is Tom Dalton, Corporate Lawyer.
Disclosures of improper conduct by Forensicare or its
employees may be made to –
The Protected Disclosure Manager
Forensicare
Locked Bag 10
Fairfield 3078
Tel: 03 9495 9149
Email: tom.dalton@forensicare.vic.gov.au OR
The Ombudsman Victoria
Level 22
459 Collins Street
Melbourne 3000
Tel: 03 9613 6222
Email: ombudvic@ombudsman.vic.gov.au
AVAILABILITY OF OTHER INFORMATION
Under section 9.1.3(iv) of Financial Management Act 1994,
the following details are retained by the Chief Executive Officer
and are available on request –
• declarations of pecuniary interests by relevant officers
• shares held by senior officers in a statutory authority
or subsidiary
• Forensicare publications
• major external reviews conducted on Forensicare
• research and development activities undertaken
• overseas visits taken
• promotional, public relations and marketing activities
conducted
• occupational health and safety policies and measures
undertaken
• industrial relations
• profile of Executives.
67

68
Financial Performance

Financial Overview
FINANCIAL MANAGEMENT
The Victorian Institute of Forensic Mental Health Council
and the Department of Human Services approved a $1.309
million deficit budget for Forensicare for 2005-2006. To
deliver the $1.205 million deficit (outlined below and detailed
in the 2005-2006 Financial Statements, pages 78-95) was
therefore a significant achievement. The budget result
included depreciation of $1.235 million which is provided for
separately by Government via capital payments in response
to submissions by Forensicare. No Capital Funds were
provided to Forensicare by the Department of Human
Services for the 2005-2006 financial year.
To support sound financial management and accountability
practices, Forensicare has continued to review the
organisation’s Financial Management Framework under the
Corporate Risk Assessment Review.
The Framework restates the various elements of our
financial management policies, practices and procedures.
It clarifies the way in which our organisation manages its
financial activities, and documents the clearer lines of
accountability and reporting.
Our financial framework is based on the following principles –
• support for the increased autonomy and accountability
of operational areas of the organisation
• integration of systems to enhance information available
to meet the diverse and growing needs of management
• transparency through standardisation of business
reporting templates
• quality financial management information that is sourced
and reproduced consistently from a common platform
• flexible capacity to adapt to meet changing information
needs in our environment.
The framework encourages strong governance, continuous
improvement and compliance with standards to support our
organisation strategic directions.
During the current and previous reporting periods,
Forensicare has undertaken a number of internal financial
reviews/assessments to assist the Council and Executive
manage the financial performance of the organisation over
the year. The reviews have consisted of –
• Expenditure comparisons by major component
• Expenditure patterns
• Deficit Management Strategies
• Long-Term Financial Budget Management Plan.
During the financial year Forensicare absorbed two
significant unbudgeted costs totalling $0.398 million.
To achieve the actual result of $30,000 surplus (excluding
depreciation) after a difficult year with both cost pressures
(high levels of patient acuity resulted in approximately 116
additional staffing shifts during the months of January to
March 2006) and the unbudgeted costs, demonstrates that
the financial strategy of Forensicare is sound and sufficiently
flexible to counteract unforeseen cost pressures.
FINANCIAL SUSTAINABILITY
The financial situation of the Institute highlights the need for
strong, long term planning and the targeted allocation of
resources. A disciplined approach to financial decision
making which relies on clear evidence, data analysis,
accurate costing and risk management is critical to the
financial stability of the Institute. This is achieved through
the preparation of the Corporate Plan, and the ongoing
development of a Long Term Financial Strategy and 5 year
Capital Works Program. The development of a Long Term
Budget Financial Model has been completed and will be
presented to the Victorian Institute of Forensic Mental
Health Council early in the coming financial year.
OVERALL FINANCIAL POSITION
Forensicare continues to be in a good financial position. The
Balance Sheet indicates that Forensicare has a satisfactory
level of Cash Assets. The Institute’s ratios have declined
compared to previous years (see graphs, page 70). The
Working Capital Ratio assesses the ability of Forensicare to
meet current commitments and is calculated by measuring
the Institute’s Current Assets against Current Liabilities. The
Institute’s ratio of 0.83:1 has declined from previous years
and is a direct result of the new accounting treatment of
calculating employee entitlements. (See note 1(l)). This
means that Forensicare has Cash and Current Assets of
$0.83 for every $1.00 of Current Liabilities.
CASH FLOW
Forensicare has a net overall cash inflow for the year of
$0.242m. The most significant variation related to the
Operating Activities with an inflow of $0.639m. The increase
in Government Grants, Other Revenue and the vigilance in
expenditure on Operating Costs (payments and supplies)
had a considerable impact on the cash position of
Forensicare. Investing Activities of Forensicare (Capital
Works and Asset Acquisition / Replacement Program) had
an outflow of $0.397million, related primarily to the
purchase of Forensicare vehicles and the upgrading of
information technology equipment.
05/06 04/05 03/04 02/03 01/02
$’000 $’000 $’000 $’000 $’000
Cash Held $4,131 $3,889 $3,337 $5,148 $3,205
*Cash Held represents unrestricted cash held at the end of the reporting periods.
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
05/06 04/05 03/04 02/03 01/02
69

70
3.0
2.5
2.0
1.5
1.0
0.5
0.0
0.94
0.92
0.90
0.88
0.86
0.84
0.82
RATIOS
Current Ratio – Liquidity
The graph below indicates Forensicare’s ability to meet its
financial commitments in the short term (next twelve
months). A ratio of 1 or greater indicates a strong financial
capability to meet commitments.
05/06 04/05 03/04 02/03 01/02 00/01
Equity/Assets – Stability
This graph indicates the Institute’s long-term stability. The
stability over the past twelve month period clearly shows
the Institute is slowly decreasing in its viability position.
05/06 04/05 03/04 02/03 01/02 00/01
INTERNATIONAL FINANCIAL
REPORTING STANDARDS
The Australian Equivalents to International Financial
Reporting Standards (A-IFRS) was introduced from 1 July
2005. The Institute has completed all the requirements
issued by the Department of Treasury and Finance (DTF)
for the introduction of the standards and the necessary
changes to our systems and procedures. In addition to the
requirements of DTF, the Institute engaged Deloitte (the
Institute’s internal auditors) to verify that the Institute has
applied all necessary Standards and Financial Reporting
Directions of the Minister of Finance. As a result of a well
planned implementation strategy there has been minimal
impact on our day-to-day business. For details of the
impact on the Institute of A-IFRS refer to note 22 of the
Financial Statements page 92.
LONG TERM FINANCIAL STRATEGY –
LOOKING AHEAD
Forensicare is currently unable to fund the replacement
of significant assets as they come to the end of their
economic life. This situation will need to be addressed over
the coming years as a number of large assets are ending
their economic and operational life. The continuing
monitoring and reporting on the 5 year Capital Replacement
Program to the Department of Human Services will need to
be increased. Forensicare is currently developing a
submission to the Department of Human Services
identifying a major asset that has come to the end of its
economic and operational life. Both Forensicare and the
Department of Human Services will need to work closely
over the coming financial year to address this issue.
As mentioned in Financial Management (previous page),
Forensicare has implemented a number of financial
management strategies for the long term financial position
of the organisation. The Council and management are
united in their commitment to achieving the long term
financial strategy and will continue to monitor and review
these strategies. Other mechanisms to assist in the financial
stability of Forensicare, including service reviews, asset
management and the six-monthly revision of the Long Term
Financial Strategies, will also assist Forensicare in seeking
a balanced position.
VICTORIAN PUBLIC SECTOR –
COMPLIANCE (FINANCIAL)
Tax Compliance Audit
The Tax Compliance Framework is a framework adopted
by the Department of Treasury and Finance to address tax
compliance risks that arise for the Victorian Public Sector
(VPS) as a result of the application of various Federal tax
laws to the VPS. Accounting firm Deloitte has undertaken
an annual review of taxation compliance and found that the
Victorian Institute of Forensic Mental Health has complied
with its obligations under the Department of Treasury and
Finance’s Tax Compliance Framework.
General Government Purchasing Card
Under the Directions of the Minister for Finance and the
Rules, the Victorian Institute of Forensic Mental Health is
required for the 2005-2006 assurance process to complete
their assurance of the General Government Purchasing
Card or other purchasing/credit card facility and submit a
Letter of Assurance to the Minister for Finance. Accounting
firm Deloitte was engaged by Forensicare to assist in the
compliance review. They found that there were no
breaches, and that Forensicare had complied with the
Directions.
Financial Management Compliance
Framework
The Financial Management Compliance Framework has
been developed by the Department of Treasury and Finance
to assist the Victorian Public Sector meet its obligations and
effectively monitor and review its overall performance in
financial management. The Framework, which now consists
of the Tax Compliance Framework and Credit Card
Compliance, has been designed to promote responsible
financial management. The Financial Management
Compliance Framework was introduced into Forensicare
on 1 July 2003.
Forensicare is required to report on its compliance with the
Framework through an assurance mechanism of annual
certification. This year, certification is due by 30 September
2006. The accounting firm Deloitte will assist Forensicare
prepare the annual certification, and the ongoing

development of responsible financial management (in
accordance with the organisational goals) whilst meeting the
requirements of the Financial Management Act 1994.
The Institute participated in a voluntary audit co-ordinated
by the Department of Treasury and Finance (conducted by
Price Waterhouse Coopers) into the organisation’s
compliance. The audit found that the Institute was compliant
with all requirements. Since the introduction of the Financial
Management Compliance, this is the first time that
Forensicare is anticipating it will report 100% compliance
with all requirements, subject to audit by Deloitte.
Institute financial performance against budget (Consolidated Output Groups)
Actual Budget Variance **Variance Ref
2005 – 06 2005 – 06
$’000 $’000 $’000 %
Income
Government Grants (Department of Human Services) 29,066 29,341 (275) 0.94%
*Other Government Revenue (Corrections Victoria Service Agreement) 2,528 2,435 93 3.83% 1
Other Income 1,689 1,440 248 17.21% 2
Total Income 33,283 33,216 67 0.20%
***Less Expenses
Employee Benefits 21,417 20,267 1,150 5.67% 3
Contracted Staff Costs 3,631 4,752 (1,121) 23.58% 4
Medicines, Drugs & Diagnostics 1,085 1,046 38 3.67% 5
Property Maintenance & Contracts 4,818 4,571 248 5.42% 6
Other Expenses 2,302 2,669 (367) 13.75% 7
Total Expenses 33,253 33,305 (52) 0.16%
Net Result For Year Before Depreciation and Amortisation 30 (89) 119 133.71%
* This amount only incl Revenue. ** Items that have a -+ 3% or more variance will have commentary *** This performance indicator excludes depreciation
Ref. Commentary on the major variance components
1 The increase in revenue relates to the increase in the contract price for the provision of mental health services
at the Melbourne Assessment Prison is offset by the increase in costs.
2 The increase relates to the non-cash debtor raised against Department of Human Services for the net
movement in Long Service Leave. See note 1(r) - Indirect Contributions of the Financial Statements at page 84
and the additional contracted services provided under the Corrections Victoria Service Agreement.
3 & 4 The movement between Contracted Staff (decrease of $1.121 million) and Employee Benefits (increase of
$1.150 million) relates to the employment relationships of Forensicare medical staff. Previously all medical staff
were employed through a contracting agreement with another health service provider. As at January 2006
medical staff were directly employed by Forensicare.
5 This increase relates to the change in contractor for the provision of pharmaceuticals. On the transfer of
contractor, Forensicare was required to purchase all drug stocks held throughout the Thomas Embling Hospital.
6 The increases in Property Maintenance & Contracts are related to the increase in corrective maintenance
required to maintain a safe and secure environment at the Thomas Embling Hospital. See details of Maintenance
Works at page 43.
7 The decrease in actual expenditure against budget has been achievable through the ongoing savings of the
Deficit Management Strategies introduced in previous years. The estimated reduction in recurrent expenditure
has been greater than anticipated.
Institute Output Groups Financial Performance
Department of Human Services Self Corrections Care Plan TOTAL
Funding Victoria Assessments BUDGET
Budget
Budgeted Revenue 30,144 220 2,665 187 33,216
Budgeted Expenditure 30,474 9 2,632 190 33,305
Variance (330) 211 33 (3) (89)
Actual
Actual Revenue 30,146 42 2,873 222 33,283
Actual Expenditure 30,203 19 2,851 180 33,253
Variance (57) 23 22 42 30
71

72
UNDERSTANDING OUR FINANCIALS
What do financial statements show?
Our financial statements provide an insight into the
Institute’s financial health. Our financial statements show –
• how the Institute performed during the year
• the value of assets held by the Institute
• the ability of the Institute to pay its debts.
What is in the financial statements?
The Financial Statements of the Institute consist of four
financial reports, explanatory notes supporting the financial
statements and the endorsement statement by the Institute
and the Victorian Auditor-General.
The four financial reports are –
• Operating Statement
• Balance Sheet
• Statement of Recognised Income and Expenses
• Statement of Cash Flows.
Operating Statement
The Operating Statements (previously known as the
Statement of Financial Performance and sometimes called
the Profit and Loss Statement) show how well the Institute
has performed financially during the financial year.
The Statement lists the main sources of revenue under
Revenue (eg, Department of Human Services) and
expenses included in the Operating Statement only include
our day-to-day running costs. Costs associated with the
purchase of assets (eg. Buildings, Plant and Equipment)
are not included in the Operating Statement. Depreciation
is included.
Depreciation is the value of any assets that is used up
during the year.
This Statement is prepared on an accrual basis - all revenue
and costs for the year are recognised, even though the
income may not yet be received or expenses not yet paid.
The key figure to look at in the Operating Statement is the
‘Net Result for Year Before Depreciation and Amortisation’.
This is the figure that the Institute is measured against for
financial performance. A surplus means that our revenue
was greater than our expenses. Being in surplus for the
year is equivalent to being in profit.
Balance Sheet
The Balance Sheet (previously known as the Statement of
Financial Position) discloses the Institute’s net accumulated
financial worth at the end of the financial year. It shows the
value of assets that we hold, as well as liabilities or claims
against these assets.
The assets and liabilities are expressed as current or noncurrent.
Current means that these are assets or liabilities
that will be expected to be paid or converted into cash
within the next 12 months.
Our most significant asset consists of property, plant and
equipment. This asset category includes all infrastructure
assets such as buildings and land as detailed in note 9(a)
of the Financial Statements (page 86)
Statement of Recognised Income
and Expenses
This Statement summarises the change in the net worth
of Forensicare.
Our net worth can only change as a result of -
• a ‘profit’ or ‘loss’ as recorded in the Operating
Statement
• an increase in the value of non-current assets resulting
from a revaluation of those assets. This amount is
transferred to an Asset Revaluation Reserve until the
asset is sold or a real profit is realised, as opposed to
being book entry only. The value of all non-current
assets must be reviewed each year to ensure that they
reflect their true value in the Balance Sheet.
Any movements in other reserves within this Statement are
adjusted through accumulated surplus.
Statement of Cash Flows
The Statement of Cash Flows summarises our cash
receipts and payments for the financial year and shows the
net increase or decrease in cash held by the Institute.
The Statement of Cash Flows represents cash ‘in hand’,
whereas the Statement of Financial Performance is
prepared on an accrual basis (including money not yet paid
or spent). This means the values in both statements may
differ.
The Institute’s cash arises from, and is used in, two main
areas - the ‘Cash flows from operating activities’ section
summarises all income and expenses relating to the
Institute’s delivery of services.
The ‘Cash flows from investing activities’ refers to the
Institute’s capital expenditure or other long term revenue
producing assets, as well as money received from the sale
of assets.
See the Cash Flow Statement at page 80 of the Institute’s
Financial Statements.
Notes to the Statements
The Notes to the accounts provide further information in
relation to the rules and assumptions used to prepare the
Financial Statements, as well as additional information and
details about specific items within the Statements.
The Notes also advise if there have been any changes to
accounting standards, policy or legislation that may change
the way the Statements are prepared. Within the four
Financial Statements, there is a column that indicates to
which note the reader can refer for additional information.
Information in the notes is particularly useful where there
has been a significant change from the previous year’s
comparative figure.

Accountable Officer’s, Chief Finance
& Accounting Officer’s and Member
of Responsible Body’s Declaration
The Declaration, made by the persons responsible for the
financial management of the Institute, states that in his (or
her) opinion, the Financial Statements have met all the
statutory and professional reporting requirements and that,
in their opinion, the Financial Statements are fair and not
misleading.
Report of Auditor-General Victoria
This document provides a written undertaking of the
accuracy, fairness and completeness of the accounts.
The audit report from the Auditor-General provides an
independent view of the Statements and advises the reader
if there are any issues of concern.
73

Financial Statements for the year ended 30 June 2006
Index to the Financial Reports
Note Contents Page
Statement of Certification 75
Auditors-General Report 76-77
Operating Statement 78
Balance Sheet 79
Statement of Recognised Income and Expenses 80
Cash Flow Statement 80
1 Statement of Accounting Policies 81
2 Statement of Understanding and Service Agreement 84
3 Income 84
4 Expenses 85
5 Net Gain / (Loss) on Disposal of Non-Current Assets 85
6 Depreciation 85
7 Cash and Cash Equivalents 85
8 Receivables 86
9 Property, Plant & Equipment 86
10 Payables 87
11 Provisions / Employee Benefits and Entitlements 87
12 Other Liabilities 87
13 Equity & Reserves 88
14 Reconciliation of Net Result for the Year to Net Cash Flows from/(used in) Operating Activities 88
15 Financial Instruments 88
16 Financial Instruments 89
17 Commitments 90
18 Superannuation 90
19 Responsible Persons Related Disclosures 91
20 Remuneration of Auditors 92
21 Contingent Liabilities 92
22 Impacts of adopting AASB equivalents to IASB standards 92
74

76
Financial Statements for the year ended
30 June 2006

Financial Statements for the year ended 30 June 2006
Victorian Institute of Forensic Mental Health
Operating Statement
For the Year Ended 30 June 2006
Note 2006 2005
$’000 $’000
Income 3
Government Grants (Department of Human Services) 29,066 28,580
Other Government Revenue (Corrections Victoria Service Agreement) 2,528 2,435
Other Income 1,689 1,614
33,283 32,629
Less Expenses 4
Employee Benefits 21,417 19,696
Contracted Staff Costs 3,631 4,529
Medicines, Drugs & Diagnostics 1,085 1,026
Property Maintenance & Contracts 4,818 4,488
Other Expenses 2,302 2,543
33,253 32,282
Net Result For Year Before Depreciation and Amortisation 30 347
Less Depreciation & Amortisation 6 1,235 1,232
Net Result For The Year (1,205) (885)
This Statement should be read in conjunction with the accompanying notes
78

Financial Statements for the year ended 30 June 2006
Victorian Institute of Forensic Mental Health
Balance Sheet
As at 30 June 2006
Note 2006 2005
$’000 $’000
ASSETS
Current Assets
Cash Assets 7, 15, 16 4,186 3,889
Receivables 8, 15, 16 1,008 942
Prepayments 8, 15, 16 - 7
Total Current Assets 5,194 4,838
Non Current Assets
Receivables 2, 8, 15, 16 1,323 1,283
Property, Plant & Equipment 9(a) 40,500 41,287
Total Non Current Assets 41,823 42,570
TOTAL ASSETS 47,017 47,408
LIABILITIES
Current Liabilities
Payables 10, 15, 16 2,499 2,650
Provisions 11(a) 3,260 2,779
Prepaid Revenue 12 473 -
Total Current Liabilities 6,232 5,429
Non Current Liabilities
Provisions 11(a) 481 470
Total Non Current Liabilities 481 470
TOTAL LIABILITIES 6,713 5,899
NET ASSETS 40,304 41,509
EQUITY
Contributed Capital 13(b) 33,781 33,781
Asset Revaluation Reserve 13(a) 1,636 1,636
Accumulated Surpluses 13(c) 4,887 6,092
TOTAL EQUITY 13(d) 40,304 41,509
This Statement should be read in conjunction with the accompanying notes
79

Financial Statements for the year ended 30 June 2006
Victorian Institute of Forensic Mental Health
Statement of Recognised Income and Expenses
As at 30 June 2006
Note 2006 2005
$’000 $’000
Gain/(Loss) on Asset Revaluation 13(a), 1(g) - 1,636
Net Income Recognised Directly In Equity 1,636
Net Result for the Year (1,205) (885)
Total Recognised Income and Expenses For The Year (1,205) 751
Victorian Institute of Forensic Mental Health
Cash Flow Statement
For the Year Ended 30 June 2006
Cash Flows From Operating Activities
Note 2006 2005
$’000 $’000
Receipts
Governments Grants* 32,501 31,412
Corrections Victoria (Melb. Assess. Prison Service Agreement)* 3,135 3,057
Professional Service Fees* 112 131
Interest 292 233
Other* 1,016 853
Payments
Employee Benefits (21,108) (22,718)
Payments and Supplies* (15,310) (12,059)
Net Cash Inflow/(Outflow) From Operating Activities 14 639 909
Cash Flows From Investing Activities
Purchase of Properties, Plant & Equipment* 9 (b) (838) (571)
Proceeds from Sale of Properties, Plant & Equipment* 5 441 214
Net Cash Inflow/(Outflow) From Investing Activities (397) (357)
Net Increase / (Decrease) In Cash Held 242 552
Cash and Cash Equivalents at Beginning of Period 7 3,889 3.337
Cash and Cash Equivalents at End of Period 7 4,131 3.889
* Amounts are inclusive of GST
This Statement should be read in conjunction with the accompanying notes
80

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Victorian Institute of Forensic Mental Health
Notes To and Forming Part of the Financial Statements
for the Year Ended 30 June 2006
Victorian Institute of Forensic Mental Health
The Victorian Institute of Forensic Mental Health (‘The Institute’) came into being on 1 January 1998. The Institute
commenced operations with effect from 1 July 1998 and has registered and operates under the trading name
Forensicare. The enabling legislation is the Mental Health Act 1986 (‘the Act’) which establishes the Institute
as an approved mental health service. The Institute is a body corporate managed by a Council of ten members
appointed in accordance with s117F of the principal Act.
Note 1
Statement of Accounting Policies
This general-purpose financial report has been prepared on an accrual basis in accordance with the Financial
Management Act 1994, Accounting Standards issued by the Australian Accounting Standards Board and Urgent
Issues Group (UIG) Interpretations. Accounting Standards include Australian equivalents to International Financial
Reporting Standards (A-IFRS).
The Financial Statements were authorised for issue by The Hon. Jim Kennan, SC, Chair, Victorian Institute
of Forensic Mental Health Council on 12 September 2006.
Basis of preparation
The financial report is prepared in accordance with the historical cost convention, except for the revaluation
of certain non-current assets and financial instruments, as noted. Cost is based on the fair values of the
consideration given in exchange for assets.
In the application of A-IFRS, management is required to make judgments, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results
may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision
affects only that period, or in the period of the revision and future periods if the revision affects both current and
future periods.
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 Institute changed its accounting policies on 1 July 2004 to comply with A-IFRS. The transition to A-IFRS is
accounted for in accordance with Accounting Standard AASB 1 First-time Adoption of Australian Equivalents to
International Financial Reporting Standards, with 1 July 2004 as the date of transition. An explanation of how the
transition from superseded policies to A-IFRS has affected Victorian Institute of Forensic Mental Health financial
position, financial performance and cash flows is discussed in note 22.
The accounting policies set out below have been applied in preparing the Financial Statements for the year ended
30 June 2006, the comparative information presented in these Financial Statements for the year ended 30 June
2005, and in the preparation of the opening A-IFRS balance sheet at 1 July 2004, the Institute date of transition,
except for the accounting policies in respect of financial instruments. The Institute has not restated comparative
information for financial instruments, including derivatives, as permitted under the first-time adoption transitional
provisions. The accounting policies for financial instruments applicable to the comparative information and the
impact of the changes in these accounting policies is discussed further in note 1(r).
(a)
(b)
(c)
(d)
Reporting Entity
The Financial Statements include all the activities of the Institute. The Institute is a not-for profit entity and therefore
applies the additional Aus paragraphs applicable to “not-for-profit” entities under the Australian equivalents to
IFRS.
Rounding Off
All amounts shown in the Financial Statements are expressed to the nearest $1,000.
Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and in banks.
Receivables
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 raised where doubt as to collection exists.
81

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
82
(e)
(f)
(g)
(h)
(i)
(j)
(k)
Other Financial Assets
Other financial assets are recognised and derecognised on trade date where purchase or sale of an investment is
under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value, net of transaction costs. Other financial assets are classified
between current and non current assets based on the Institute intention at balance date with respect to the timing
of disposal of each asset.
Investments can be classified in the following categories: financial assets at fair value through profit or loss, loans
and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends
on the purpose for which the investments were acquired. Management determines the classification of its
investments at initial recognition. No investments are held by the Institute at balance date.
Non Current Physical Assets
Land and buildings are measured at the amounts for which assets could be exchanged between knowledgeable
willing parties in an arm’s length transaction. Plant, equipment and vehicles are measured at cost.
Revaluations of Non-Current Assets
Assets other than those that are carried at cost are revalued with sufficient regularity to ensure that the carrying
amount of each asset does not differ materially from its fair value.
This revaluation process normally occurs every five years for assets with long useful life. Revaluation increments
or decrements arise from differences between an asset’s depreciated cost or deemed cost and fair value.
Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an
increment reverses a revaluation decrement in respect of that class of asset previously recognised at an expense
in net result, the increment is recognised as revenue in the net result.
Revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that
a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited
directly to the asset revaluation reserve.
Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and
equipment are offset against one another within that class but are not offset in respect of assets in different
classes. Revaluation reserves are not transferred to accumulated funds on derecognition of the relevant asset.
Depreciation
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 using the straight-line method.
Estimates of the remaining useful lives and depreciation method for all assets are reviewed at least annually. This
depreciation charge is not funded by the Department of Human Services.
The following table indicates the expected useful lives of non-current assets on which the depreciation charges
are based.
2006 2005
Buildings 50 years 50 years
Communication Equipment 6 years 6 years
Computer Equipment, Furniture 5 years 5 years
Equipment and Other Assets From 2 – 17 years From 10 – 17 years
Impairment of Assets
If there is an indication of impairment of assets held by the Institute then the assets concerned are tested as to
whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its
recoverable amount, the difference is written-off by a charge to the Operating Statement, except to the extent that
the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset.
The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value
less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the
higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to
sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the
asset will be replaced unless a specific decision to the contrary has been made.
Payables
These amounts represent liabilities for goods and services provided prior to the end of the financial year and which
are unpaid. The normal credit terms are net 30 days.
Goods and Services Tax
Revenues, expenses and assets are recognised net of GST, except for receivables and payables which are stated
with the amount of GST included, and except where the amount of GST incurred is not recoverable, in which case
GST is recognised as part of the cost of acquisition of an asset or part of an item of expense or revenue. GST
receivable from and payable to the Australian Taxation Office (ATO) is included in the Balance Sheet. The GST
component of a receipt or payment is recognised on a gross basis in the Cash Flow Statement in accordance
with AASB 107 Cash flow statements.

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
(l)
Employee Benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service
leave, and sick leave when it is probable that settlement will be required and they are capable of being measured
reliably.
Measurement of Short-term and Long-term Employee Benefits
Short-term employee benefits are those benefits that are expected to be settled within 12 months, and are
measured at their nominal values using the remuneration rate expected to apply at the time of settlement. They
include wages and salaries, sick leave, annual leave, long service leave and accrued days off that are expected
to be settled within 12 months.
Long-term employee benefits are those benefits that are not expected to be settled within 12 months, and are
measured at the present value of the estimated future cash outflows to be made by the Institute in respect of
services provided by employees up to reporting date. They include long service leave and annual leave not
expected to be settled within 12 months.
The present value of long-term employee benefits is calculated in accordance with AASB 119 Employee Benefits.
Long-term employee benefits are measured as the present value of expected future payments to be made in
respect of services provided by employees up to the reporting date. Consideration is given to expected future
wage and salary levels, experience of employee departures and periods of service. Expected future payments are
discounted using interest rates on national Government guaranteed securities with terms to maturity that match,
as closely as possible, the estimated future cash outflows.
Classification of Employee Benefits as Current and Non-current Liabilities
In accordance with policy direction from the Department of Treasury and Finance, employee benefit provisions are
reported as current liabilities where the Institute does not have an unconditional right to defer settlement for at
least 12 months. Consequently, the current portion of the employee benefit provision can include both short-term
benefits that are measured at nominal values and long-term benefits that are measured at present values.
Employee benefit provisions that are reported as non-current liabilities also include long-term benefits such as non
vested long service leave (i.e. where the employee does not have a present entitlement to the benefit) that do not
qualify for recognition as a current liability, and are measured at present values.
Superannuation
Defined Contribution Plans
Contributions to defined contribution superannuation plans are expensed when incurred.
Defined Benefit Plans
The amount charged to the Operating Statement in respect of defined benefit plan superannuation represents the
contributions made by the Institute to the superannuation plan in respect to the current services of current Institute
staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.
The Institute does not recognise any defined benefit liability in respect of the superannuation plan because the
Institute 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 has assumed
responsibility for the defined benefit liability of the Institute, and administers and discloses the State’s defined
benefit liabilities in its Financial Report.
On-Costs
Employee benefit on-costs are recognised and included in employee benefit liabilities and costs when the
employee benefits to which they relate are recognised as liabilities.
(m)
(n)
Leased Property and Equipment
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all
the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the
lessor effectively retains all such risks and benefits.
Operating lease payments are representative of the pattern of benefits derived from the leased assets and
accordingly are expensed in the periods in which they are incurred.
Revenue Recognition
Revenue is recognised in accordance with AASB 118 Revenue. Income is recognised as revenue to the extent
it is earned. 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
Grants are recognised as revenue when the Institute gains control of the underlying assets. Where grants are
reciprocal, revenue is recognised as performance occurs under the grant. Non-reciprocal grants are recognised
as revenue when the grant is received or receivable. Conditional grants may be reciprocal or non-reciprocal
depending on the terms of the grant.
Indirect Contributions
• Insurance receipts are recognised as revenue following advice from the Department of 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 Acute Health Division Hospital Circular 16/2004.
83

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
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 reserve, such as specific restricted purpose reserve.
(o)
(p)
(q)
Comparative Information
The Institute has only made minimal adjustment to previous year’s figures to facilitate comparisons.
Contributed Capital
Consistent with UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities
and FRD 2 Contributed Capital, appropriations for additions to the net asset base have been designated as
contributed capital. Other transfers that are in the nature of contributions or distributions have also been
designated as contributed capital.
Net Result For Year Before Depreciation and Amortisation
A-IFRS allows the inclusion of additional subtotals on the face of the operating statement when such presentation
is relevant to an understanding of an entity’s financial performance. This financial report includes an additional
subtotal, Net Result For Year Before Depreciation and Amortisation.
The Institute has separately disclosed –
• Depreciation and amorisation, as described in Note 1 (h) and 6.
There are no other capital and specific items.
(r) Financial Instruments - Adoption of AASB 132 and AASB 139
The Institute has elected not to restate comparative information for financial instruments within the scope of AASB
132 Financial Instruments: Presentation and Disclosure and AASB 139 Financial Instruments: Recognition and
Measurement, as permitted on the first-time adoption of A-IFRS.
The accounting policies applied to accounting for financial instruments in the current financial year are detailed in
notes 1(c), 1(e) and 1(k).
Note 2
Statement of Understanding and Service Agreement
A Statement of Understanding (1 July 1998 to 30 June 1999) between the Department of Human Services and
the Institute specifically provides for the following –
The Department of Human Services acknowledge their liability for the accrued long service leave entitlements for
all employees with service up to 1 July 1998 transferred from the Department to the Institute under the provisions
of section 97 of the Mental Health Act 1986.
Note 2006 2005
$’000 $’000
Note 3
Income
Government Grants
1(n)
Service Agreement – (Department of Human Services) 28,844 28,233
Other Government Revenue 222 348
Corrections Victoria –
(Melbourne Assessment Prison Service Agreement) 2,528 2,435
Other Revenues
Interest 292 233
Professional Fees 389 373
Court Reports 109 119
WorkCover Recoveries 283 243
Gain on Disposal of Assets 5 52 36
Other Income 564 610
33,283 32,629
84

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Note 2006 2005
$’000 $’000
Note 4
Expenses
Employee Benefits
1(l)
Salaries & Wages 17,163 15,911
Employee Entitlements 1,759 1,515
Superannuation 18 1,502 1.409
WorkCover 506 288
Long Service Leave 487 573
Non Salary Labour Costs
Agency Staff 1,135 1,011
Medical Salaries 2,496 3,518
Medicines, Drugs & Diagnostics
Medicines, Drugs 927 873
Diagnostics 158 153
Property Maintenance & Contracts
Property Expenses 396 350
Maintenance Expenses 746 663
Contracts 2,075 1,931
Security 1,601 1,544
Other Expenses
Information Technology 388 308
Supplies & Consumables 1,302 1,521
Patient Stores & Provisions 168 354
Financial Expenses 17 24
Internal Audit Fees 95 139
Other 332 197
33,253 32,283
Note 5
Net Gain / (Loss) on Disposal of Non-current Assets
Proceeds from Disposal of Non-current Assets
Plant & Equipment 441 214
Total Proceeds from Disposal of Non-current Assets 441 214
Less: Written Down Value of Non-current Assets Sold
Plant & Equipment (389) (178)
Total Written Down Value of Non-current Assets Sold (389) (178)
Net Gain on Disposal of Non-current Assets 52 36
Note 6
Depreciation
Buildings 807 684
Plant & Equipment 428 548
Total Depreciation 1,235 1,232
Note 7
Cash and Cash Equivalents
Cash on Hand 1 1
Cash at Bank 4,185 3,888
4,186 3,889
Represented by -
Cash for Institute Operations (as per Cash Flow Statement) 4,131 3,889
Cash for Monies Held in Trust
Cash at Bank 55 -
TOTAL 4,186 3,889
85

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Note 2006 2005
$’000 $’000
Note 8
Receivables
Current
Trade Debtors 1,008 918
Prepaid Expenses - 7
Accrued Revenue - 24
Total Current Receivables 1,008 949
Non Current
Department of Human Services – Long Service Leave 793 753
Department of Human Services – Employee Entitlements
(s97, Mental Health Act 1986) 2 530 530
Total Non Current Receivables 1,323 1,283
Total Receivables 2,331 2,232
Note 9 (a)
Property, Plant & Equipment
Land
Land at Valuation at June 2005 3,350 3,350
Total Land 3,350 3,350
Buildings
Buildings at Valuation at June 2005 36,226 36,226
Additions at Cost 72
- Less Accumulated Depreciation Costs (809) (2)
Total Buildings 35,489 36,224
Plant and Equipment
Plant & Equipment at Cost 3,784 3,721
- Less Accumulated Depreciation Costs (2,123) (2,009)
Total Plant & Equipment 1,661 1,713
Total Property, Plant & Equipment 40,500 41,287
An independent valuation of the Institute’s land and buildings was made by G.M. Brien & Associates Pty Ltd
under the auspice of the Victorian Valuer-General’s Office. The valuation was adopted as at 30th June 2005
with a revaluation increase of $168,000 (Land) and $1,467,975 (Buildings) totalling $1,635,975. A valuation
was undertaken as at 30th June 2006, however the revaluation increases of $167,000 (Land) and $113,000
(Buildings) totalling $280,000 has not been recognised.
Note 9 (b) Land Buildings Plant & Total
Equipment
$’000 $’000 $’000 $’000
Balance at 1 July 2004 3,182 35,440 1,868 40,490
Additions - - 571 571
Disposals - - (178) (178)
Revaluation Increments 168 1,468 - 1,636
Depreciation (Note 1(h), 6) - (684) (548) (1,232)
Balance at 1 July 2005 3,350 36,224 1,713 41,287
Additions - 72 766 838
Disposals - - (389) (389)
Depreciation (Note 1(h), 6) - (807) (428) (1,235)
Balance at 30 June 2006 3,350 35,489 1.661 40,500
86

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Note 2006 2005
$’000 $’000
Note 10
Payables
Current
Trade Creditors 1,458 1,636
GST Payable 207 196
Accrued Expenses 834 818
Total Payables 2,499 2,650
Note 11(a)
Provisions / Employee Benefits
Current
Long Service Leave (LSL)
11 (b)
- Short-term benefits at nominal value 196 167
- Long-term benefits at present value 1,561 1,301
Annual Leave
11 (b)
- Short-term benefits at nominal value 869 742
- Long-term benefits at present value 561 505
Sick Leave 73 64
Total Current 3,260 2,779
Non Current
Long Service Leave 11 (b) 481 470
Total Non-current 481 470
Total Provisions 3,741 3,249
Movement in Long Service Leave
Balance at start of year 1,938 1,588
Provision made during the year 470 571
Settlement made during the year (170) (221)
Balance at End of Year 2,238 1,938
Note 11(b)
Employee Entitlements
Current
All annual leave and LSL entitlements representing 7+ years
of continuous service:
• Short-term employee benefits that fall due
within 12 months after the end of the period
measured at nominal value. 1,065 909
• Other long-term employee benefits that do not
fall due within 12 months after the end of the
period measured at present value. 2,122 1,806
3,187 2,715
Non-current
LSL represented less than 7 years of continuous services
measured at present value. 481 470
Note 12
Other Liabilities
Prepaid Revenue 473 -
Total Other Revenue 473 -
87

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Note 2006 2005
$’000 $’000
Note 13
(a)
(b)
Equity & Reserves
Reserves
Asset Revaluation Reserve
Balance at the beginning of the reporting period 1,636 -
Revaluation Increment/(Decrements)
- Land - 168
- Buildings - 1,468
Balance at the End of the Reporting Period 1,636 1,636
Contributed Capital
Balance at the beginning of the reporting period 33,781 33,781
Balance at the end of the reporting period 33,781 33,781
(c)
Accumulated Surpluses/(Deficits)
Balance at the beginning of the reporting period 6,092 6,977
Net result for the year transfers to and from reserve (1,205) (885)
Balance at the End of the Reporting Period 4,887 6,092
(d)
Equity
Total equity at the beginning of the reporting period 41,509 40,758
Total changes in equity recognised in the Operating Statement (1,205) 751
Total Equity at the Reporting Date 40,304 41,509
Note 14
Reconciliation of Net Result for the Year to Net Cash Flows
from/(used in) Operating Activities
Net Result for the Year (1,205) (885)
Depreciation & Amortisation 1,235 1,232
Net (Gain)/Loss from Sale of Plant & Equipment (52) (36)
Change in Operating Assets & Liabilities, Net of Effect from Restructuring
Increase/(Decrease) in Payables 267 423
Increase/(Decrease) in Employee Benefits 493 417
(Increase)/Decrease in Other Current Assets (10) 30
(Increase)/Decrease in Receivables (89) (272)
Net Cash Flows From/(Used In) Operating Activities 639 909
Note 15
(a)
Financial Instruments
Risk Management Policies
The Institute’s instruments consist mainly of deposits with banks and accounts receivable and payable.
The Finance and the Audit & Risk Management Sub Committees of the Institute’s Council, consisting of Executives
and non- executives, meets regularly, to analyse the Financial Risk Management Strategies, which include -
• Investment Objectives and Policies
• Accounts Payable & Receivable Turnover rates
• Fraud Management Policy and Mitigation Strategies
(b)
(c)
Significant Accounting Policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis
of measurement and the basis on which income and expenses are recognised, in respect of each class of financial
asset, financial liability and equity instrument are disclosed in note 1 to the Financial Statements.
Interest Rate Risk Exposure
The Institute exposure to interest rate risk and effective weighted average interest rate by maturity periods is set
out in the following table. For interest rates applicable to each class of asset or liability refer to individual notes to
the Financial Statements. Exposures arise predominantly from assets and liabilities bearing variable interest rates.
88

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Interest Rate Exposure as at 30/06/2006
Floating 1 year 1 to 5 Over 5 Non Total Weighted
Interest Rate or less years years Interest Average
Bearing 2005 Interest
Rates**
$’000 $’000 $’000 $’000 $’000 $’000 (%)
Financial Assets
Cash at Bank 4,186 - - - - 4,186 5.66%
Trade Debtors - - - - 1,008 1,008 N/A
Other Receivables - - - - 1,323 1,323 N/A
Total Financial Assets 4,186 - - - 2,331 6,517
Financial Liabilities
Trade Creditors and Accruals - - - - 2,499 2,499 N/A
Total Financial Liabilities - - - 2,499 2,499 N/A
Total Financial Asset/Liabilities 4,185 - - - (168) 4,018 N/A
Interest rate exposure as at 30/06/2005
Financial Assets
Cash at Bank 3,889 - - - - 3,889 4.99%
Trade Debtors - - - - 918 918 N/A
Other Receivables - - - - 1,314 1,314 N/A
Total Financial Assets 3,889 - - - 2,232 6,121 4.99%
Financial Liabilities
Trade Creditors and Accruals - - - - 2,650 2,650 N/A
Total Financial Liabilities - - - - 2,650 2,650 N/A
Total Financial Asset/Liabilities 3,889 - - - (418) 3,471 N/A
**Weighted average or effective interest rates for each class of assets
(d)
Credit Risk Exposure
Credit risk represents the loss that would be recognised if counterparties fail to meet their obligations under the
respective contracts at maturity. The credit risk on financial assets of the entity have been recognised on the
Balance Sheet, as the carrying amount, net any provisions for doubtful debts. The Institute is not materially
exposed to any individual debtor.
(e)
Fair Value of Financial Assets and Liabilities
The carrying amount of financial assets and liabilities contained within these Financial Statements is representative
of the fair value of each financial asset or liability.
Note 16
Financial Instruments
Net Fair Value
2006 2005
Book Value Fair Value ** Book Value Fair Value**
$’000 $’000 $’000 $’000
Financial Assets
Cash at Bank 4,186 4,186 3,889 3,889
Trade Debtors 1,008 1,008 918 918
Other Receivables 1,323 1,323 1,314 1,314
Total Financial Assets 6,516 6,516 6,121 6,121
Financial Liabilities
Trade Creditors and Accruals 2,499 2,499 2,650 2,650
Total Financial Liabilities 2,499 2,499 2,650 2,650
**Net fair values are capital amounts
Net fair values of financial instruments are determined on the following bases –
i. Cash, deposit investments, cash equivalents and non-interest bearing financial assets and liabilities (trade
debtors, other receivables, trade creditors and advances) are valued at cost which approximates to fair value
ii. Interest bearing liability amounts are based on the present value of expected future cash flows, discounted at
current market interest rates, quoted for trade (Treasury Corporation of Victoria.)
89

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Note 2006 2005
$’000 $’000
Note 17
Commitments
(i) Operating Leases
Commitments for photocopiers are as follows -
Less than one year 25 12
Greater than one year but less than five years 38 -
63 12
(ii) Other Commitments
At 30 June 2006, future contractual commitments for supply
of goods and services entered into and not provided for in the
Operating Statement amount to $7,744,953
(2004-2005 $11,944,000)
Contracted Services Agreements (Commitments)
Security 2,650 4,339
Provision of Meals and Labour 2,221 3,454
Recreational Services 694 154
Cleaning Services 1,271 1,889
Waste Removal 28 28
Facility Maintenance 258 268
Pharmacy Services 278 1,277
Pathology Services 197 273
Audit Services 126 212
Other 22 50
7,745 11,944
These expenditures are payable -
Not later than one year 4,216 4,253
Later than one year but not later than five years 3,529 7,691
7,745 11,944
Note 18
Superannuation
Superannuation contributions for the reporting period are included as part of employee benefits and on-costs in
the Operating Statement of the Institute.
The name and details of the major employee superannuation funds and contributions made by the Institute are as
follows -
Health Employee Superannuation Trust Australia Fund 824 851
State Superannuation Fund 223 214
Health Super Scheme 426 315
Other Funds 29 29
Total Superannuation 1,502 1,409
(a)
Superannuation
Employees transferring to the Institute under s97 of the Mental Health Act 1986 have retained their status in state
superannuation schemes. New employees join the Health Employee’s Superannuation Trust of Australia (HESTA)
or a scheme of choice.
90
(b)
Basis of Calculating Contributions
The bases for contributions are determined by the various schemes.
The unfunded superannuation liability in respect to members of State Superannuation Schemes and Health Super
Scheme is not recognised in the Balance Sheet. The Institute’s total unfunded superannuation liability in relation to
these funds has been assumed by and is reflected in the Financial Statements of the Department of Treasury and
Finance.
The above amounts were measured as at 30 June of each year, or in the case of employer contributions, they
relate to the years ended 30 June.
All employees of the Institute are entitled to benefits on retirement, disability or death from the Government
Employees Super Fund. The defined benefit fund provides defined lump sum benefits based on years of service
and annual average salary.

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Note 19
(a)
Responsible Persons Related Disclosures
Responsible Persons
The relevant Minister and Councillors of the Victorian Institute of Forensic Mental Health are deemed to be the
responsible persons by Ministerial Direction pursuant to the provision of the Financial Management Act 1994.
Period
Responsible Minister
The responsible person (Minister) of the Victorian Institute of Forensic Mental Health
during the reporting period was –
The Hon. Bronwyn Pike, MLA - Minister for Health 01/07/2005 to 30/06/2006
Governing Councillors
The responsible persons (Councillors) of the Institute at any time
during the reporting period were-
The Hon. Mr Jim Kennan, SC, Chair 01/07/2005 to 30/06/2006
The Hon. Justice Bernard Teague, Deputy Chair,
Nominee of the Attorney-General 01/07/2005 to 30/06/2006
Robert Adler 01/07/2005 to 22/05/2006
Anthony Goad 01/07/2005 to 30/06/2006
Una Gold 01/07/2005 to 30/06/2006
Terry Laidler 01/07/2005 to 30/06/2006
Professor Paul Mullen, Clinical Director,
Victorian Institute of Forensic Mental Health 01/07/2005 to 30/06/2006
Judith Player 01/07/2005 to 22/05/2006
David Ware, Nominee of the Minister for Corrections 01/07/2005 to 07/04/2006
Joan Clarke, OAM 23/05/2006 to 30/06/2006
Associate Professor Peter Doherty, PSM 23/05/2006 to 30/06/2006
Michael Burt, Chief Executive Officer,
Victorian Institute of Forensic Mental Health (Accountable Officer) 01/07/2005 to 30/06/2006
(b)
Remuneration of Responsible Persons
The number of Responsible Persons are shown in their relevant income bands;
2006 2005
No.
No.
Income Band
$0 - $9,999 9 9
$10,000 - $19,999 1 -
$60,000 - $69,999 1 -
$190,000 - $199,999 1 -
$200,000 - $209,999 - 1
Total Numbers 12 10
2006 2005
$’000 $’000
Total Remuneration Received or Due and Receivable by
Responsible Persons from the Reporting Entity Amounted to - 300 231
91

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
(c)
Executive Officers Remuneration
The number of Executive Officers other than Ministers and Accountable Officers, whose total remuneration
(including bonuses, LSL payments, redundancy payments and retirement benefits) for the year falls within each
successive $10,000 band, commencing at $100,000.
Total Remuneration Base Remuneration
2006 2005 2006 2005
No. No. No. No.
Income Band
$100,000 - $109,999 - - - -
$110,000 - $119,999 1 - 1 1
$120,000 - $129,999 - - - 2
$130,000 - $139,999 - 1 - -
$140,000 - $149,999 1 1 2 -
$150,000 - $159,999 1 1 1 -
$160,000 - $169,999 1 - - -
Total Numbers 4 3 4 3
Total Remuneration Received or Due and
Receivable by Responsible Persons from
the Reporting Entity amounted to 579 427 565 370
(d)
Clinical Director
The Minister for Health appoints the Clinical Director of the Institute pursuant to s.117H of the Mental Health Act
1986. The Clinical Director is Chair in Forensic Psychiatry at Monash University. His service is partly provided
through an arrangement with Monash University.
(e)
Loans to Councillors
No loans were made to or are payable by Councillors.
(f)
Other Transactions
There are no other transactions between the members of the Council and the Institute.
Note 20
Remuneration of Auditors
Audit fees paid or payable to the Victorian Auditor-General's
Office for audit of the Institute’s current Financial Report
2006 2005
$’000 $’000
Paid as at 30 June 2005 - -
Payable as at 30 June 2006 13 13
Total Paid and Payable 13 13
Note 21
Contingent Liabilities
There are no Contingent Liabilities at 30 June 2006 (Nil 30 June 2005)
Note 22
Impacts of adopting AASB equivalents to IASB standards
Following the adoption of Australian equivalents to International Financial Reporting Standards (A-IFRS), the
Institute has reported for the first time in compliance with A-IFRS for the financial year ended 30 June 2006.
Under A-IFRS, there are requirements that apply specifically to not-for-profit entities that are not consistent with
IFRS requirements. The Institute is established to achieve the objectives of Government in providing services free
of charge or at prices significantly below their cost of production for the collective consumption by the community,
which is incompatible with generating profit as a principal objective. Consequently, where appropriate, the Institute
applies those paragraphs in Accounting Standards applicable to not-for-profit entities.
The Institute changed its accounting policies, other than its accounting policies for financial instruments, on 1 July
2004 to comply with A-IFRS. The Institute changed its accounting policies for financial instruments on 1 July 2005
(refer note 1(r)). The transition to A-IFRS is accounted for in accordance with Accounting Standard AASB 1 Firsttime
Adoption of Australian Equivalents to International Financial Reporting Standards, with 1 July 2004 as the
date of transition. An explanation of how the transition from superseded policies to A-IFRS has affected the
Institute’s financial position, financial performance and cash flows is set out in the following tables and the notes
that accompany the tables.
92

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Effect of A-IFRS on the Balance Sheet as at 1 July 2004
Note Superseded Effect of transition
Policies to A-IFRS A-IFRS
(000’s)* (000’s) (000’s)
ASSETS
Current Assets
Cash Assets 3,337 - 3,337
Receivables 1,423 - 1,423
Prepayments 37 - 37
Total Current Assets 4,797 - 4,797
Non-Current Assets
Receivables 530 - 530
Property, Plant & Equipment 22.2 35,906 4,584 40,490
Total Non-Current Assets 36,436 4,584 41,020
TOTAL ASSETS 41,233 4,584 45,817
LIABILTITES
Current Liabilities
Payables 2,227 - 2,227
Provisions 22.3 1,434 1,006 2,440
Total Current Liabilities 3,661 1,006 4,667
Non-Current Liabilities
Provisions 22.3 1,428 1,036 392
Total Non-Current Liabilities 1,428 1,036 392
TOTAL LIABILTITIES 5,089 (30) 5,059
NET ASSETS 36,144 4,614 40,758
EQUITY
Contributed Capital 33,781 - 33,781
Asset Revaluation Reserve 22.2 2,956 (2,956) -
Accumulated Surpluses/(Deficit) (593) 7,570 6,977
TOTAL EQUITY 36,144 4,614 40,758
* reported financial position for the financial year ended 30 June 2004
93

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Effect of A-IFRS on the Balance Sheet as at 30 June 2005
Note Superseded Effect of transition
Policies to A-IFRS A-IFRS
(000’s)* (000’s) (000’s)
ASSETS
Current Assets
Cash Assets 3,889 - 3,889
Receivables 942 - 942
Prepayments 7 - 7
Total Current Assets 4,838 - 4,838
Non Current Assets
Receivables 1,283 - 1,283
Property, Plant & Equipment 41,287 - 41,287
Total Non Current Assets 42,570 - 42,570
TOTAL ASSETS 47,408 - 47,408
LIABILTITES
Current Liabilities
Payables 2,650 - 2,650
Provisions 22.3 2,829 50 2,779
Total Current Liabilities 5,479 50 5,429
Non Current Liabilities
Provisions 470 470
Total Non Current Liabilities 470 470
TOTAL LIABILTITIES 5,949 5,899
NET ASSETS 41,459 50 41,509
EQUITY
Contributed Capital 33,781 - 33,781
Asset Revaluation Reserve 22.2 9,176 7,540 1,636
Accumulated Surpluses/(Deficit) (1,498) (7,540) 6,091
TOTAL EQUITY 41,459 50 41,509
* reported financial position for the year ended 30 June 2005
Effect of A-IFRS on the Operating Statement for the Financial Year Ended 30 June 2005
Note Superseded Effect of transition
Policies to A-IFRS A-IFRS
(000’s)* (000’s) (000’s)
Revenue From Ordinary Activities
Government Grants
(Department of Human Services) 28,580 - 28,580
Other Government Revenue
(Corrections Victoria Service Agreement) 2,435 - 2,435
Other Revenue From Ordinary Activities 1,578 - 1,578
32,593 - 32,593
94
Expenses From Ordinary Activities
Employee Benefits 19,716 (20) 19,696
Contracted Staff Costs 4,529 - 4,529
Medicines, Drugs & Diagnostics 1,026 - 1,026
Property Maintenance & Contracts 4,488 - 4,488
Other Expenses 2,507 - 2,507
32,266 (20) 32,246

Financial Statements for the year ended 30 June 2006
Notes To and Forming Part of the Financial Statements for the year Ended 30 June 2006
Effect of A-IFRS on the Operating Statement for the Financial Year Ended 30 June 2005 - continued
Note Superseded Effect of transition
Policies to A-IFRS A-IFRS
(000’s)* (000’s) (000’s)
Net Result From Ordinary Activities
Before Capital & Specific Items 327 (20) 347
Depreciation and Amortisation (1,232) - (1,232)
Net Result For The Year (905) (20) (885)
Effect of A-IFRS on the statement of cash flows for the financial year ended 30 June 2005
There are no material differences between the Cash Flow Statement presented under A-IFRS and the Cash Flow
Statement presented under the superseded policies.
1. Impairment of Assets.
AASB 136 Impairment of Assets requires assets to be assessed for indicators of impairment each year. This
Standard applies to all assets, other than inventories, financial assets and assets arising from construction
contracts, regardless of whether they are measured on a cost or fair value basis. If indicators of impairment
exist, the carrying value of an asset will need to be tested to ensure that the carrying value does not exceed
its recoverable amount, which is the higher of its value-in-use and fair value less costs to sell. For not-for-profit
entities, value-in-use of an asset is generally its depreciated replacement cost. An impairment test was
conducted as at the transition date, 1 July 2004, which indicated that no indicators of impairment existed.
2. Property, Plant & Equipment.
When an asset is initially recognised, AASB 116 Property, Plant and Equipment requires the capitalisation of
costs of dismantling and removing an asset and restoring the site on which the asset was created, together
with the recognition of a provision at present value in accordance with AASB 137 Provisions, Contingent
Liabilities and Contingent Assets. These costs (and the related provisions) are not recognised under Australian
GAAP. The Institute has no current legal or constructive obligation for the dismantling of its property plant and
equipment at 30 June 2005, hence there is no required adjustment due to this change in accounting policy.
For its land and buildings the Institute has taken the deemed cost option available under AASB 1 First-time
adoption of A-IFRS. The revaluation of the land and buildings at 30 June 2004 has been taken as the
deemed cost and has the impact of transferring the asset revaluation reserve prior to 30 June 2004 of
$2,955,577 and accumulated depreciation of buildings up to 30 June 2004 of $1,351,980 and the revaluation
of land and buildings of $2,730,264 to accumulated surpluses/(deficits) on transition to A-IFRS at 1 July 2004.
3. Employee Benefits.
Under previous Australian Accounting Standards, employee benefits such as wages and salaries, annual leave
and sick leave are required to be measured at their nominal amount regardless of whether they are expected
to be settled within 12 months of the reporting date.
On adoption of A-IFRS, a distinction is made between short-term and long-term employee benefits and AASB
119 Employee Benefits requires liabilities for short-term employee benefits to be measured at nominal
amounts and liabilities for long-term employee benefits to be measured at present value. AASB 119 defines
short-term employee benefits as employee benefits that fall due wholly within twelve months after the end of
the period in which the employees render the related service. Therefore, liabilities for employee benefits such
as wages and salaries, annual leave and sick leave are required to be measured at present value where they
are not expected to be settled within 12 months of the reporting date.
The effect of the above requirement on the Institute’s Balance Sheet as at 30 June 2005 was a decrease
in employee benefits liability of $50,000. For the year ended 30 June 2005, employee benefits expense
decreased by $20,000 as the present value discount on the liabilities for long-term employee benefits
unwound.
4. Accumulated Surplus
The effect of the above adjustments on accumulated surplus is as follows:
Note 1 July 2004 30 June 2005
$’000 $’000
Transfer from Asset Revaluation Reserve 22.2 2,956
Fair Value as Deemed Cost
Additional Depreciation Expenses
Impairment Expense
Employee Benefits 22.3 30 (20)
Borrowing Costs
Revaluation of Property, Plant & Equipment 22.2 4,584
Other (describe)
Total Adjustments to Accumulated Surplus 7,570 (20)
95

Statement of Corporate Intent - 2005-06 – 2007-08
96
Forensicare is required by legislation (Mental Health Act
1986, s.117O) to prepare a Corporate Plan each year for the
Minister for Health. The Act requires that the Corporate Plan
includes a Statement of Corporate Intent, a planning
document covering the current year and two subsequent
years (s.117U), and that this statement be included in the
Annual Report. Accordingly, the Statement of Corporate
Intent 2005-2006 – 2007-2008 is reproduced below.
Statement of Corporate Intent 2005-2006 –
2007-2008
Business Objectives
• Provide a high quality, expanded inpatient service that
delivers efficient and effective care and treatment in a
secure environment that integrates physical, procedural
and relational security
• Provide a high quality, expanded community service that
delivers efficient and effective care and treatment for
mentally disordered offenders
• Promote and develop knowledge and expertise in
forensic mental health
• Strengthen the capacity and expertise of Forensicare,
ensuring optimal and efficient and effective functioning.
Accounting Policies
The Victorian Institute of Forensic Mental Health prepares
general purpose financial reports in accordance with
Australian Accounting Standard AAS29 ‘Financial Reporting
by Government Departments’. AAS29 requires the accrual
basis of accounting to be adopted. It also acknowledges that
government departments are primarily service-oriented
entities that require reporting consistent with departments’
service delivery objectives.
The published annual financial report contains a statement of
financial performance, a statement of financial position and a
statement of cash flows and is audited by the Auditor-General’s
Office Victoria. The Victorian Institute of Forensic Mental Health
reports each twelve-month period ending 30 June.
CLINICAL SERVICES
Main Undertakings
The Clinical Services program is responsible for treating
people with serious mental disorders in the criminal justice
system and those patients at high risk of behaving violently.
Clinical Services provides the following inpatient and
community services –
• Expert assessment and advice to courts, corrections,
releasing authorities and general mental health services in
relation to the early detection, assessment, treatment and
risk management of mentally disordered offenders and
potential offenders
• Specialist assessment and treatment in secure inpatient
facilities that provide high quality clinical services that
meet regulations and legislative and security requirements
• Community follow-up, either directly or indirectly, for
clients discharged from specialist forensic inpatient
facilities or from prison
• Community care and treatment to target group clients
referred by area mental health services, courts, Adult
Parole Board or Community Correctional Services
• Liaison and consultative services to public mental health
services and other agencies in relation to treatment of
mentally disordered clients with significant forensic issues
• Facilities and services that achieve high standards of care
and security and contribute to community safety.
Nature and Scope of Activities
Inpatient
Maintaining 100 specialist forensic inpatient beds at the
Thomas Embling Hospital
Maintaining a comprehensive security system at Thomas
Embling Hospital through ongoing monitoring and upgrading
as required
Maintaining full ongoing accreditation from Australian Council
on Healthcare Standards for Inpatient Operations
Strengthening clinical programming by targeting risk
assessment, co-occurring disorders and offending/violence
reduction
Enhancing mental health programs for mentally ill prisoners
and those remanded in custody (subject to requirements of
correctional management and health providers)
Implementing consumer outcome measures to monitor
performance of clinical programs, consistent with the
Department of Human Services policy
Strengthening and enhancing mechanisms for consumer and
carer participation in service development
Completing at least one comprehensive and independent
clinical audit of inpatient services
Reviewing all emergency contingency planning in
collaboration with fire brigade, police and corrections
Identifying, developing and implementing forensic-specific
key performance indicators and measures.
Community
Maintaining an effective working relationship with public
mental health services in relation to interface arrangements
with the community program
Providing a supported accommodation service in the Jardine
flats (located adjacent to Thomas Embling Hospital)
Strengthening clinical programming by targeting risk
assessment, co-occurring disorders and offending/violence
reduction
Maintaining full ongoing accreditation from Australian Council
on Healthcare Standards for Community Operations
Enhancing community mental health services and programs
for mentally ill people released from prison
Completing at lease one comprehensive and independent
clinical audit of community programs
Implementing consumer outcome measures to monitor
performance of clinical programs, consistent with
Department of Human Services policy
Strengthening and enhancing mechanisms for consumer and
carer participation in service development.
Performance Measures
Inpatient
Thomas Embling Hospital –
28 day readmission rate
Number of inpatient episodes
Average length of acute inpatient stay for s.16(3)(b) patients
(ie. patients transferred from prison)
Inpatient episodes with outcome assessments completed.

Community
Number of community treatment episodes (at least one
treatment episode during the 3 month period)
Number of treatment days provided in three month period
Number of secondary consultations provided (note –
secondary consultations do not require Forensicare to
complete an outcome assessment)
Community treatment episodes (longer than two treatment
days in three month period with outcome assessments
completed
PROFESSIONAL EDUCATION
AND RESEARCH
Main Undertakings
The Professional Education and Research program—
• provides professional education and training on forensic
mental health issues to Forensicare, public mental health
services and other key stakeholders.
• promotes and develops knowledge and expertise in
forensic mental health
• produces and facilitates high quality research to better
inform clinical practice in the provision of public mental
health services.
Nature and Scope of Activities
Facilitating the development of skills and expertise in forensic
mental health through an active professional education
program
Supporting and promoting a specialist research program to
inform clinical service delivery
Disseminating forensic mental health clinical and research
knowledge to public mental health services through
workshops and newsletters.
Performance Measures
Professional Education
Number of education and training sessions provided to area
mental health services
Number of education and training sessions provided to other
agencies
Number of formal presentations and papers delivered to
professional forums
Number of professional education placements provided
Research
Number of completed research projects
Number of research projects approved by Forensicare
Research Sub-Committee for commencement
Number of developments in clinical practice
introduced as a result of research findings
Number of scholarly articles published in refereed
journals and books
• Provides information to the general community on
forensic mental health issues to promote and develop
knowledge and expertise in forensic mental health
• Promotes the activities and services of the Victorian
Institute of Forensic Mental Health to enhance and
improve public and key stakeholder confidence
• Develops and/or expands services as approved by the
Minister for Health.
Nature and Scope of Activities
Developing a comprehensive 5 year planning framework for
the organisation that incorporates strategic directions across
health and justice to guide development of the Institute from
2004-2008
Maintaining a comprehensive Quality Improvement Program
(which may include targeted benchmarking against like
services) to promote productivity efficiency and high quality
service provision
Maintaining interstate and international forensic networks to
strengthen capacity and expertise, enhance service delivery
and inform public mental health services
Pursuing service development opportunities that will
strengthen the capabilities of Forensicare
Providing high-level advice on forensic health and forensic
mental health issues
Continuing to develop independent information technology
capabilities to enhance organisational efficiency, research and
professional education
Contributing to the development of a combined secure
extended care-medium secure forensic facility
Developing and implementing an expansion of Community
Forensic Mental Health Service to meet increased demand
for specialist services
Maintaining full ongoing organisation-wide accreditation from
Australian Council on Healthcare Standards
Maintaining strong level of credibility with Government for
capable and efficient financial and security management
Demonstrating effective professional management of
industrial relations issues within the workplace
Maintaining the confidence of Government (including police,
corrections and courts) and the community for services
provided
Developing an organisational culture that harnesses and
values the expertise of staff in delivering excellent forensic
mental health services.
CORPORATE SUPPORT AND DEVELOPMENT
Main Undertakings
The Corporate Support and Development program within the
Victorian Institute of Forensic Mental Health –
• Provides advice to the Department of Human Services
and other key stakeholders on forensic mental health
issues
97

Glossary
98
Acute Assessment Unit /AAU
Australian Council on
Healthcare Standards/ACHS
Axis I psychiatric diagnosis
Carers
Category 1 Incident
Client
Community Program, or Community
Forensic Mental Health Service
Community Treatment Episodes
Corporate Governance
Corporate Plan
Corrections Victoria
Council
Custodial Supervision Order
Department of Human Services
Department of Justice
EEO
EFT
EQuIP
Extended Leave
FBT
Forensic patient
Inpatient
Inpatient episodes
Melbourne Assessment Prison/MAP
Medical Record
Multidisciplinary
Non-Custodial Supervision Order
Occupied Bed Days
Outcome
Outcome Assessments
RAPID
Separation/Discharge
Statutory Requirements
Thomas Embling Hospital
A 16-bed unit providing statewide assessment of male prisoners thought to be mentally
disordered in the prison system. The forensic mental health service in the Acute Assessment
Unit is provided by Forensicare under a contractual arrangement with Department of Justice.
The agency which inspects and evaluates health care facilities to obtain accreditation.
The primary diagnosis of a mental disorder that is the focus of clinical concern.
People who care for patients/consumers who are not members of the mental health care
team.
A serious incident within Forensicare that requires notification to external agencies
(eg. Victoria Police or Department of Human Services).
A person receiving care and/or treatment from Forensicare’s Community Forensic Mental
Health Service.
The service arm of Forensicare responsible for the delivery of community programs.
An episode of community treatment that started and finished within a specific period.
Effective, fair, transparent and accountable management of the relationship with the
community with integrity to produce an enhanced and efficient service.
The annual planning document that Forensicare is required by legislation to prepare for the
Minister for Health.
The Victorian Government agency responsible for the 11 state managed prisons and
community based corrections.
The Council of the Victorian Institute of Forensic Mental Health
An order made by the court committing a person to Thomas Embling Hospital for an
indefinite term, with a review date as specified by the court.
The Victorian Government Department responsible for the provision of mental health, and
through which Forensicare reports to the Minister for Health.
The Victorian Government Department responsible for the criminal justice system (including
prisons and community corrections).
Equal Employment Opportunity
Equivalent full time staffing position
Evaluation and Quality Improvement Program – the program by which health care facilities
voluntarily undertake continuous improvement to gain accreditation.
A period of leave (up to 12 months) granted by the court for a forensic patient where the
patient resides outside the Hospital. Each grant of leave requires a separate court hearing
and is subject to specific conditions set by the court.
Fringe Benefits Tax
A person detained under Victoria’s mental impairment legislation – Crimes (Mental
Impairment and Unfitness to be Tried) Act 1997
A person who is admitted to Thomas Embling Hospital for care and treatment.
An episode of inpatient care that started and finished within a specific period.
The reception prison for men, managed by Corrections Victoria, located in Spencer Street,
Melbourne. Forensicare provides forensic mental health services at the Melbourne
Assessment Prison under a contractual arrangement with Department of Justice.
The file containing facts of a patient/client’s mental health and life history.
Care or a service provided with input from more than one discipline/profession.
An order made by the court allowing a forensic patient to live in the community with
specified conditions. It can be made at initial trial following a finding of not guilty by reason
of mental impairment, or later, following successful periods of extended leave. Like a
Custodial Supervision Order, a Non-custodial Supervision Order is for an indefinite term.
Total number of patients in Thomas Embling Hospital in a given period.
Results that may or may not have been intended that occur as a result of a service or
intervention.
A measure of a patient/client’s wellbeing at set given points during an episode of inpatient or
community care and treatment.
The data base used by the Department of Human Services to capture all mental health data
across the state.
The completion of an episode of care and the patient/client leaves the organisation.
Any requirement laid down by an Act of Parliament.
Forensicare’s 100-bed secure inpatient facility.
Transitional Accommodation Program A supported living program for patients moving back to the community from Thomas
Embling Hospital.

Disclosure Index
The Annual Report of the Victorian Institute of Forensic Mental Health is prepared in accordance with all relevant Victorian legislations. This
index has been prepared to facilitate identification of the Victorian Institute of Forensic Mental Health compliance with statutory disclosure
requirements.
Legislation Requirement Page reference
Ministerial Directions
Report of Operations
Charter and purpose
FRD 22 Manner of establishment and the relevant Ministers ifc, 56, 81, 91
FRD 22 Objectives, functions, powers and duties ifc, 1, 96, 97
FRD 22 Nature and range of services provided ifc
Management and structure
FRD 22 Organisational structure 65
Financial and other information
FRD 22 Statement of workforce data and merit and equity 49, 50
FRD 22 Summary of the financial results for the year 3, 4
FRD 22 Significant changes in financial position during the year 3, 71
FRD 22 Operational and budgetary objectives and performance against objectives 96, 97
FRD 22 Major changes or factors affecting performance 6-9
FRD 22 Subsequent events n/a
FRD 22 Application and operation of Freedom of Information Act 1982 67
FRD 22 Compliance with building and maintenance provisions of Building Act 1993 67
FRD 22 Statement on National Competition Policy 67
FRD 22 Application and operation of the Whistleblowers Protection Act 2001 67
FRD 22 Details of consultancies over $100,000 67
FRD 22 Details of consultancies under $100,000 67
FRD 12 Disclosure of major contracts 90
FRD 22 Statement of availability of other information 67
FRD 22 Occupational health and safety 47
FRD 15 Executive officer disclosures 91-92
FRD 10 Disclosure index 99
FRD 24 Reporting of office-based environmental impacts 52-53
FRD 25 Victorian Industry Participation Policy disclosures 64
FRD 8 Budget portfolio outcomes n/a
Financial Statements
Financial statements required under Part 7 of the Financial Management Act 1994
SD 4.2(a) Compliance with Australian accounting standards and other authoritative pronouncements 81
SD 4.2(a) Compliance with Ministerial Directions 81
SD 4.2(d) Rounding of amounts 81
SD 4.2(c) Accountable Officer’s declaration 75
SD 4.2(f) Model Financial Report 81
SD 4.2(b) Operating Statement 78
SD 4.2(b) Balance Sheet 79
SD 4.2(b) Statement of Recognised Income and Expenses 80
SD 4.2(b) Statement of cash flows during the year 80
SD 4.2(b) Notes to the financial statements 81-95
SD 4.2(e) Financial statements reviewed and recommended 60
Other disclosures in notes to the financial statements
FRD 9 Departmental disclosure of administered assets and liabilities n/a
FRD 11 Disclosure of ex-gratia payments n/a
FRD 13 Disclosure of parliamentary appropriations n/a
FRD 21 Responsible person and executive officer disclosures 91, 92
FRD 23 Superannuation liabilities and disclosures 90
Legislation
Freedom of Information Act 1982 67
Building Act 1983 67
Whistleblowers Protection Act 2001 67
Victorian Industry Participation Policy Act 2003 67 99

Index
100
A
Accountable Officer’s (and Others)
Declaration 75
Accreditation 40
Advice to Government 42
Aged Offenders 41
Asset Management 43
Assurance, Review and Risk Evaluation 64
Audit and Risk Management Committee 59
Audit Program 63
Audit Planning 63
Audit Scope 63
Auditor-General’s Report 76-77
B
Benchmarking 40
Building and Maintenance 67
Business Support 42-43
C
Campus Program Co-ordination 20
Care Plan Assessments Victoria 13
Cash Flow 69
Centre for Forensic Behavioural Science 37
Chairman’s Report 10
Chief Executive Officer’s Report 11
Clinical Director’s Report 15
Clinical Operations
ifc
Clinical (Student) Placements 30
Clinical Services 14-27
Clinical Waste 52
Code of Conduct, Staff 47
Communication Strategy 41
Community Forensic Mental Health Service
24-27
Community Forensic Mental Health Service,
Client Profile 27
Community Forensic Mental Health Service,
Performance Data 26
Community Forensic Mental Health Services,
Service Enhancement 40
Community Integration Program 25
Community Networks 51
Compliance Framework 64
Composition of Revenue 3
Composting, Organic Waste 52
Computer Recycling 52
Conformity 67
Consolidating and Strengthening Clinical
Programs (CSCP) 18, 29
Consultants 67
Contracts 19
Corporate Governance 54-67
Corporate Governance Framework 56
Corporate Governance Principles
and Disclosure 54-55
Corporate Governance, Remuneration,
Social Responsibility and Planning
Committee 60
Corporate Performance 47-48
Corporate Support and Development 38-45
Corporate Support and Development,
Performance Data 45
Council, Victorian Institute of Forensic Mental
Health 56
Council, Code of Conduct 59
Council, Committees 59-62
Council, Composition 56
Council, Delegation of Authority 56
Council, Ethics 59
Council, Independent Advice 63
Council, Members 57-58
Council, Members Retirement/New
Appointment 59
Council, Meetings/Meeting Attendances
59, 62, 64
Council, Performance Evaluation 59
Council, Reporting 59
Council, Role 56
Council, Rules 59
Court Liaison Program 25
Court Reports 44
Critical Incident Stress Management
Program 47
Custodial Supervision Orders 43
D
Debtors by Category, Five Year Comparison 4
Director of Psychological Services’ Report 16
Disclosure Index 99
E
Educational Affiliations 31
Employee Assistance Program 47
Employee Relations 50
Employee Remuneration and Benefits 50
Employment Practices and Policies 64
Energy Reduction Initiatives 52
Environmental Management 52-53
Environmental Sustainability Strategy 52
Equal Employment Opportunity 50
Executive, Forensicare 66
Expenditure 3
F
Family and Friends 51
Family Sensitive Practice Committee 51
Finance Committee 60
Financial Analysis 4
Financial Compliance,
Victorian Public Sector 70
Financial Governance 63
Financial Management 69
Financial Overview 69
Financial Performance 3, 68-95
Financial Performance Against Budget 3, 71
Financial Position 69
Financial Position, Significant Changes 71
Financial Strategy, Long-term 70
Financial Sustainability 69
Five Year Comparison of Debtors 4
Fleet Management 43
Forensic Behavioural Science, Certificate 40
Freedom of Information 67
Funding Sources 3, 41
G
Glossary 98
Graduate Certificate/Diploma in Forensic
Behavioural Science 37
Graduate and Postgraduate
Nurse Program 31
H
Health Information Services 41
Highs and Lows of 2005-2006 2
I
Index, Financial Reports 74
Infection Control 47
Information Technology 42
Information Management / Technology
Committee 61
Inpatient Services 18-23
Inpatient Services, Performance Data 21
International Financial Reporting Standards
42, 70
J
Judicial and Legal Links 45
Juvenile Justice 19
L
Law Reform and Training 45
Legal Services 43
Legislation
ifc
Legislative Compliance 64, 67
M
Major Presentations – Professors Mullen
and Ogloff 31-33
Maintenance 43, 67
Management Reporting 42
Management Team 66
Martin, Dr Trish, Report 17
Merit and Equity 50
Melbourne Assessment Prison 20
Melbourne Assessment Prison,
Performance Data 20
Mission Statement 1
Mullen, Professor Paul, Report 15
Mullen, Professor Paul, Major Presentations 31
N
National Benchmarking 40
National Competition Policy 67
NEVIL Cluster 30
Non-Custodial Supervision Orders 25, 44
Nursing Practice Director, Report 17
O
Objectives 1
Occupational Health and Safety 47
Occupational Therapy 31
Ogloff, Professor James, Report 16
Ogloff, Professor James,
Major Presentations 32
Organisational Chart 65
Organisational Profile
ifc
Orientation Program 30
Other Information, Availability of 67
Our Environment 52
Our People 49
P
Paper Recycling 52
Payroll Services 43
Patient Profile – Thomas Embling Hospital 22
Policies and Procedures 64
Prison Mental Health Services 20
Prison Mental Health,
Service Enhancement Proposal 20

This annual report was designed and produced by Stavros Design Group (03) 9428 4586
Problem Behaviour Program 25
Professional Education 29-33
Professional Education, Performance Data 33
Professional Education and Research 28-36
Q
Quality Improvement and Clinical Ethics
Committee 61
Quality Improvement 40
R
Ratios 70
Recycling 52
Remuneration Policy 64
Reporting Against Objectives 6-9
Research 34-36
Research, Performance Data 36
Research Committee 61
Research Outcomes 35
Research in Progress 36
Research Published 34
Research Report 34
Revenue Composition 3
Risk Management 64
S
Secure Inpatient Facility, New 40
Security, Thomas Embling Hospital 48
Service Performance at a Glance 5
Sewer Treatment Plan, Feasibility Study 53
Sex Offenders 41
Social Performance 51
Staff Achievements 50
Staff Climate Survey 49
Staff Inservice and Professional Education 29
Staff Recruitment and Retention 49
Statement of Corporate Intent 96-97
Student Placements 30
Sustainability Management 46-53
T
Thomas Embling Hospital,
Capacity Increase 18
Thomas Embling Hospital, Profile 22
Thomas, Dr Stuart 37
Training for Area Mental Health Services 30
Training and Support, External Agencies 30
Transitional Accommodation Program 25
U
Understanding our Financials 72-73
V
Values
ifc
Vehicle Fleet, Emission Performance 53
Victims of Crime 25
Victoria Police 41
Victorian Industry Participation Policy 64
Victorian Institute of Forensic Medicine 40
Victorian Public Sector Compliance,
Financial 70
Vision Statement 1
Visitors – International and Interstate 42
Vocational Rehabilitation Program 19
W
Water Consumption 53
Water Restriction Compliance 53
Whistleblower’s Act 67
WorkCover 50
Workforce Profile 49
Y
Year in Review 3-9

Victorian Institute
of Forensic Mental Health
Yarra Bend Road
Fairfield Vic 3078
Australia
Tel 61 3 9495 9100
Fax 61 3 9495 9199
Email
info@forensicare.vic.gov.au
www.forensicare.vic.gov.au
Thomas Embling Hospital
Yarra Bend Road
Fairfield Vic 3078
Australia
Tel 61 3 9495 9100
Fax 61 3 9495 9199
Email
info@forensicare.vic.gov.au
www.forensicare.vic.gov.au
Community Forensic
Mental Health Service
200 Sydney Road
Brunswick Vic 3056
Tel 61 3 9356 8500
Fax 61 3 9356 8599
Email
info@forensicare.vic.gov.au
www.forensicare.vic.gov.au
Forensicare Prison
Mental Health Service
Melbourne Assessment Prison
317 Spencer Street
West Melbourne Vic 3003
Tel 61 3 9321 4250
Fax 61 3 9329 4830
Email
info@forensicare.vic.gov.au
www.forensicare.vic.gov.au
Community Forensic
Mental Health
Service
Melbourne
Assessment
Prison
Thomas
Embling
Hospital
PORT PHILLIP BAY
North