Portland District Health Annual Report 2008 - South West Alliance of ...

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organisational chart BOARD OF MANAGEMENT Chief Executive Officer Quality Coordinator Finance Manager Deputy Cheif Executive Officer Director Medical Services (Vacant) Director of Nursing Primary & Community Care - Chronic & Complex Care - Early Intervention - Health Promotion - Drug & Alcohol - Dental Career Medical Officers Visisting Medical Officers Accident & Emergency Services Acute/Midwifery HR Manager Information Technology Pharmacy Sub Acute/ Rehabilitation Medical Imaging Dialysis Sub Regional support by Western District Health Services Building & Engineering Hotel Services Health Information Supported Residential Services Financial Services Operating Services Residential Aged Care 12 Portland District Health
financial performance THE 2007/08 YEAR PRODUCED AN OPERATING RESULT SIGNIFICANTLY BETTER THAN BUDGETED, AND PORTLAND DISTRICT HEALTH WILL BUDGET FOR A SMALL OPERATING SURPLUS FOR THE COMING FINANCIAL YEAR. The service has been under DHS financial close watch for the past four years, and this will continue into the coming financial year. The key reasons for DHS’s decision to place Portland Distrct Health on financial close watch include: • Liquidity ratio < 0.7 – (0.33 – 0.71) • Sustained operating deficits over recent years: 2004-05 - $0.63 million 2006-07 - $0.985 million The journey to rebuild the accuracy and completeness of Portland District Health’s financial ledgers has been demanding. I am especially indebted to Western District Health Service Director of Corporate Services Pat Turnbull and his team for their tireless and unerring work over the past financial year. We can now report with certainty. In addition, at the beginning of 2007/08 we estimated that our deficit for the year may be between $1.7 and $2 million. In August, Portland District Health and Western District Health Service agreed to develop a sub-regional support structure that would allow Portland District Health to purchase financial services from WDHS. This decision was made in light of the following: - Being unable to verify the accuracy or completeness of the general ledger; - Cash requirements could not be determined with certainty; - We were unable to identify department or program costs or their linkage to reporting systems; and - We were unable to determine actual performance and verify it accurately. Over the past twelve months, the following actions have been initiated: • Development of a financial strategy; • Preparation of internal and financial controls; • Restructuring Portland District Health’s charter and the terms of reference of the Audit and Risk Committee; • A call for independent audit committee members; • Appointment of internal auditors, in partnership with Western District Health Service; • Model by-laws refreshed and modernised to reflect contemporary health service practice; and • Developing audit priorities for 2008 around internal controls incorporating contract management, payroll, VMO payments and so on. OPERATING RESULT The first measurement, net result from operations before capital, provides the most realistic measurement of Portland District Health’s financial performance in terms of day-to-day operations of the service. It reflects the financial success or otherwise of providing a range of services within the constraints of the operational streams of income available to it. In particular, it recognises that health services are not funded for the cost of depreciation. On this measure of profitability, Portland District Health has delivered an improved result. Examples of work undertaken to achieve this improved result and address Portland District Health’s financial situation have been: • Installation of a robust system of internal controls and financial controls, including authorised delegations; • Instigation of a Goods and Services Tax and Fringe Benefit Tax compliance; • Compilation and implementation of a Financial Improvements Register totalling $629,000, with $1.2 million expected during next financial year; • A review of all major contracts, for example radiology, physiotherapy, maternal and child health services; • Internal reviews of the catering, environmental services and senior executive structure; and • Tendering of food provisions. The poor state of Portland District Health’s financial ledgers that were handed to the incoming administration left us not knowing the full extent of Portland District Health’s operating deficit. I am therefore delighted to report a small operating loss of $43,000. ANNUAL REPORT 07/08 13
Page 1 and 2: 2007/08 PROVIDING SAFE AND COST EFF
Page 3 and 4: president’s report Greg Andrews I
Page 5 and 6: chief executive’s report IT IS PL
Page 7 and 8: An important outcome arising from t
Page 9 and 10: A JUGGLING ACT Juggling appointment
Page 11 and 12: VICTORIAN PUBLIC HEALTHCARE AWARDS
Page 13: Vin Gannon BOARD MEMBER Vin served
Page 17 and 18: financial performance OPERATING STA
Page 19 and 20: John O’Neill, Greg Andrews and Mi
Page 21 and 22: Sub-Acute nurses Julienne Stone and
Page 23 and 24: Hotel services staff members Jacqui
Page 25 and 26: Divison 2 Nurse Lorrene Bartle, Div
Page 27 and 28: Harbourside Lodge is a state-of-the
Page 29 and 30: Beth Alexander and Noelene Flower,
Page 31 and 32: A step that’s paid off Donna Shep
Page 33 and 34: services provided by Portland Distr
Page 35 and 36: quality activities Senior dietitian
Page 37 and 38: employee recognition Portland Distr
Page 39 and 40: volunteer recognition There were 87
Page 41 and 42: medical officers PDH Specialist Cen
Page 43 and 44: governance Portland District Health
Page 45 and 46: BUILDING ACT 1993 The Minister for
Page 47 and 48: PROVIDING SAFE & COST EFFECTIVE PRI
Page 49 and 50: FINANCIAL STATEMENTS for the year e
Page 51 and 52: Balance Sheet As at 30 June 2008 No
Page 53 and 54: Cash Flow Statement For the Year En
Page 55 and 56: Notes To and Forming Part of the Fi
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Notes To and Forming Part of the Fi
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Note 18: Financial Instruments (Con
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Carrying Interest Rate Risk Other P
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