Annual Report 2006-2007 - Forensicare

2006-2007 – The Year in Review continuedREVENUE BY FUNDING SOURCE06/07 05/06 04/05 03/04% $’000 % $’000 % $’000 % $’000Service Agreement - Dept. Human Service 87.75% 31,027 86.66% 28,844 84.83% 28,233 79.16% 26,347Service Agreement - Corrections Victoria 9.19% 3,250 7.60% 2,528 7.32% 2,435 7.02% 2,338Service Agreement - Care Plan Assessment (DHS) 0.61% 214 0.67% 222 1.05% 348 0.90% 301Self Generated Revenue 2.45% 865 5.07% 1,689 4.74% 1,578 3.26% 1,085Self Generated Revenue 2.45%Service Agreement - Dept. Human Services(Care Plan Assessments Victoria) 0.61%Service Agreement -Corrections Victoria 9.19%Service Agreement -Dept Human Services 87.75%HOW WE SPENT THE MONEYThe services provided by Forensicare aresplit in to three outputs for financialperformance (Clinical Services,Professional Education and Researchand Corporate Support and Development.(see Financial Performance, pages 18-20).Forensicare also reports on expenditureby funding sources (see FinancialPerformance, pages 18-20 ). TheOperating Expenses for these outputswere $35,349m, an increase of $2.096mor 6.3% percent on the previous year.The contributor to the increase inOperating Expenses for ordinary activitieswas a rise in Employee Benefits, Propertyand Maintenance and Other Expensesof approximately $3,810m or 13.35%from 2005-2006. This was offset bya reduction in Contracted Staff, andMedicines, Drugs and Diagnostics ofapproximately $1,714m or 36.35%from 2005-2006 (see Financial Analysisand Commentary (pages 100-101).Included in the increase in OperatingExpenses, Forensicare was requiredto absorb four unbudgeted expenses(WorkCover increase and employmentadvertising (18 additional beds),telecommunication contract establishmentand the commencement (set-up) costs forthe Environmental Sustainability Strategy),totalling $0.414m.To assist in offsetting these four additionalexpenses, Forensicare targetedexpenditure reduction in two areas,Logistics (Fleet Management) andInformation Systems Technology. Thisreduction in expenditure was achievedwithout affecting the delivery of patientand client services by continuing theservice enhancements commencedin 2004-2005.4 Victorian Institute of Forensic Mental Health Annual Report 2006-2007