annual report - parliament.vic.gov.au · our vision outstanding health care for our community. our...

Annual Report

PASSIONATEWe care

COLLABORATIVEWe are a team

PROGRESSIVEWe look

to improve

PARTNERSHIPWe

Collaborate

DEDICATEDWe are focused

SECTION HEADING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

Our VisionOutstanding health care for our community.

Our MissionAt Northern Health we are committed to the wellbeing of the people of Melbourne’s north. We draw upon the richness, knowledge and strength of northern communities as we partner with them in their care.

Our Strategic Goals· Patient First - Our patients’ expectations are exceeded because we partner with them to

deliver innovative and accessible care.

· Quality and Safety - We pursue the highest quality outcomes of care.

· Our People - Passionate and capable people have great careers and provide outstanding health care.

· Sustainability – We eliminate unnecessary processes and costs to ensure long-term financial viability and sustainability

Our Values• Passionate – we care

• Dedicated – we are focused

• Progressive – we look to improve

• Collaborative – we are a team

• Partnership – we collaborate

– 1 –

NORTHERN HEALTH 2015 - 16 ANNUAL REPORT

– 2 –

At Northern Health, we are committed to the wellbeing of

the people of Melbourne’s north.

We draw upon the richness, knowledge and strength of

northern communities as we partner with them in their care.

– 3 –

CO

NTE

NTS

CONTENTS

ContentsReport of Operations

Board Chair and Chief Executive Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Northern Health Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Northern Health Executive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Organisational Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Our Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Our Achievements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Statement of Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Performance Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Activity and Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Disclosure Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Financial Statements and Accompanying Notes

Table of Contents - Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51


– 4 –

– 5 –

BO

AR

D C

HA

IR

AN

D C

HIE

F E

XE

CU

TIV

E

RE

PO

RT

BOARD CHAIR AND CHIEF EXECUTIVE REPORT

Board Chair and Chief Executive Report Northern Health has grown

substantially since its establishment in 2000. From

humble beginnings as a mid-sized community hospital, the health service has evolved to become a major provider of health care for Melbourne’s northern suburbs.

Melbourne’s north is home to a richly diverse community where 120 languages are spoken. Northern Health staff, many of whom come from culturally diverse backgrounds, strive to deliver excellence in patient-centred care that is both respectful and accessible. We aim to make community members feel comfortable, confident and satisfied with the health care they receive at Northern Health.

The growth of our diverse northern community continues, with estimates showing more than 230,000 new residents will live in our catchment area by 2031. The evolution and expansion of Northern Health’s services in order to meet increased demand for services and capacity—both today and in the years ahead—is ongoing. As a result, we are adding new sub-specialties to our service delivery model and exploring non-hospital services to ensure that our community receives the right health care in the right health setting.

In 2015-16, presentations to The Northern Hospital’s Emergency Department rose by more than 10

per cent, and a record 3,589 babies were born at The Northern Hospital over the last 12 months, making us yet again one of the busiest health services in Victoria. Northern Health still faces many challenges around providing timely patient access—an area in which we continue to work to produce positive change—but we have seen improvements in both emergency and elective surgeries this year. Compared to 2014-15, the number of patients being treated within clinically recommended times has risen from 61 per cent to 76 per cent, which brings us much closer to our Statement of Priorities target of 80 per cent.

Similarly, the year-on-year increases in our elective surgery waiting list has been halted and we have experienced a reduction in the waiting list of approximately 10 per cent, despite waiting list admissions growing by five per cent.

The demand for Northern Health’s services will continue to rise each year which is why we are working closely with government to find options that will enable us to expand our infrastructure. To that end, significant planning work is underway with the Northern Growth Corridor Steering Committee and Ministerial Advisory Committee on Statewide Services and Infrastructure.

This year we opened a new 32 bed inpatient ward at The Northern

Hospital to provide additional capacity for the increasing number of admissions and also warmly welcomed the Victorian Government’s announcement of $17.3 million to expand the elective surgery centre at Broadmeadows Health Service. Work at the Broadmeadows Surgical Centre is expected to be completed by mid-2017 and the finished facilities will allow us to perform an additional 2,500 elective procedures locally each year.

Financial sustainability is critical to Northern Health’s future, and the Board and leadership team are pursuing that sustainability with unrelenting vigour to ensure taxpayer funds are spent in the most appropriate manner.

Three Northern Health Board members retired on June 30, and we thank Brian Joyce, Sabine Phillips and John Fitzgerald for their significant contributions. Our thanks also go to our valued community health care and academic partners, and we extend our gratitude to the Northern Health Foundation, our donors, supporters, patients and staff.

2016-17 will no doubt bring challenges of its own, but we step into the year ahead with reinvigorated confidence in our ability to build the foundations for our future.

In accordance with the Financial Management Act 1994, we are pleased to present the Report of Operations for Northern Health for the year ending 30 June 2016.

Jennifer Williams Siva SivarajahBoard Chair Chief Executive Officer Northern Health Northern Health25/08/2016 25/08/2016

– 6 –


Jennifer Williams Board ChairJennifer Williams was appointed as Northern Health Board Chair on 1 July 2015.

She has previously worked as a Chief Executive to several large health care organisations including Austin Health (five years), Alfred Health (seven years) and most recently, as Chief Executive of the Australian Red Cross Blood Service (seven years). Jennifer is now a non-executive director and in addition to her Northern role she is also currently Chair of Yooralla and a Council Member of La Trobe University.

Jennifer has extensive experience in the health sector and has held many board positions. ●

Jim Bailey A Graduate member of the Australian Institute of Company Directors (AICD), Jim Bailey joined the Board in November 2014. He has provided strategic business advice, coaching and consulting services to key executives in many companies and across a number of sectors.

Jim’s core profession is Human Resources. In 1992 he led the formation of a new, national organisation, the Australian Human Resources Institute (AHRI), having worked in a number of honorary positions at state and national levels for several years in the predecessor organisation, the Institute of Personnel Management Australia (IPMA).

Jim is an active member of three Boards in total, including a not for profit organisation, as well as chairing an advisory board for a university faculty. Both of the professional bodies to which Jim belongs, namely AHRI and the Recruitment Consulting Services Association (RCSA), have awarded him their highest honour of Life Fellowship.

In addition, his involvement with Bailey Shaw’s executive recruitment clients has given him a wealth of exposure to a broad cross section of some of Australia’s best companies. ●

Juliann ByronJuliann Byron was appointed to the Northern Health Board on 8 December 2015.

Juliann has extensive experience as Chief Financial Officer of both public and private companies, in addition to strong governance and strategic planning skills. She holds board positions on a number of public, private and, not for profit boards.

She is a Fellow of CPA Australia, Fellow of the Institute of Company Directors, and a Member of the Governance Institute of Australia. ●

Northern Health Board

– 7 –

NO

RTH

ER

N

HE

ALT

H

BO

AR

D

NORTHERN HEALTH BOARD

John FitzgeraldAssociate Professor Fitzgerald is an expert in Alcohol and Drug Policy, with a PhD in Pharmacology on the drug ecstasy and a second PhD in English on the discourse and language used to understand psychoactive substances.

A/Prof Fitzgerald has received numerous research grants from national funding bodies and has worked internationally assisting with health training and policy development. He has served as Associate Dean (Knowledge Transfer) in the Faculty of Medicine, Dentistry and Health Sciences and worked at the Victorian Health Promotion Foundation where he led the research, alcohol, tobacco and healthy eating programs and acted as CEO for 10 months. A/Prof Fitzgerald also has an active media profile appearing on TV and radio as an expert commentator on matters relating to alcohol, tobacco, healthy eating and healthy urban planning strategies.

A/Prof Fitzgerald joined the Northern Health Board in October 2013 and is currently working at The University of Melbourne continuing his teaching, supervision of research higher degree students and research on issues ranging from diabetes self-care, preventive health financing and population health approaches to health and wellbeing. ●

Brian JoyceBrian Joyce is a Certified Practicing Accountant and Master of Administration (Monash.) He has extensive experience in Hospitals and Health Services management and financing.

Until 2008 Mr Joyce was Regional Director of the North and West Metropolitan Region of the Department of Human Services (DHS). During his career with DHS Mr Joyce held a number of senior executive positions including Director, Primary and Community Health, Executive Director Operations, and Regional Director, Southern Metropolitan Region. Mr Joyce also held the position of Deputy Chief General Manager of the former State Department of Health.

Prior to joining the public service Mr Joyce held the positions of Finance Director, Box Hill Hospital and Manager, Finance and Services, of the Victorian Branch of the Health Insurance Commission and Medibank Private.

Since retiring from the public service Mr Joyce has served as the government appointed Administrator of Western Education Support and Training Network (WestNet) and Advisor to a Youth Justice Custodial Services Taskforce. Mr Joyce also undertakes service review work in the Human Services sector. ●

Alison LilleyAlison Lilley is a currently practicing Specialist Anaesthetist who was appointed to the Northern Health Board in 2014.

Dr Lilley brings with her a wealth of experience from both the world of clinical medicine as well as senior level management in the public health system. Her past appointments include 10 years as Director of Anaesthesia and six years as Director of Perioperative Services at the Royal Women’s Hospital. She has also been Chair of the Senior Medical Staff at RWH, and a member of the Industrial Relations sub-committee of the Board of the AMA (Vic). In addition she is an Examiner for the Australian and New Zealand College of Anaesthetists, and is a member of the Anaesthetic Advisory Committee, and of the Obstetric Medical Advisory Committee at Epworth Health Care.

She has received a number of Research grants, including a NH&MRC grant of $225,000 for an investigation into the role of cytokines in pelvic pain in women.

Alison has a Masters in Public Policy and Management, and a Graduate Certificate in Health Economics from Monash University, and is a passionate supporter of women’s health in the public sector and a firm believer in the right of every member of the Australian public to have equity of access to the highest quality health care. She is involved in a number of safety and quality and risk management committees at various hospitals, and most recently consulted on the development of quality audit processes for the development of four new public health programs at a large community health provider in Massachusetts, USA. ●


– 8 –


Peter McWilliam Peter brings with him extensive skills in business and management derived from 37 years of experience working at RBM and Paramount Plastic Extrusions, one of Australia’s largest privately owned plastic manufacturing companies. Peter served as a General Manager and Company Director within the organisation and its subsidiary Paramount Plastics (Aust.) for 30 years, providing leadership based on inspiring effective teamwork, strong planning and organisational skills.

Peter understands the importance and value of staff in an organisation’s success and has many years of experience in implementing training and mentoring programs to maintain organisational viability. Peter sat on the Australian Standards subcommittee on Building Facades and Glazings in the late 1980s and initiated and implemented Australian and International Standards ISO9001 and 9002 at Paramount Plastics (Aust.) from the mid 1990s, successfully being audited and retaining accreditation for Paramount Plastics (Aust.) from then until his retirement.

As a resident of the northern suburbs, Peter is familiar with its rapid growth and development and the evolving needs the local community requires. Since retiring in 2010, Peter is now focused on sharing his business acumen and skills to benefit health services in the northern Melbourne area. ●

Sabine PhillipsSabine Phillips is a Partner at Gadens lawyers, a national law firm. Sabine’s practice is in health, retirement living, disability services and aged care. She specialises in corporate and clinical governance, risk management, compliance and dispute resolutions.

Ms Philips holds a Master of Laws, a Master of Business (Organisation Behaviour) and a Bachelor of Applied Science (Advanced Nursing). She is also a non-practising registered nurse and is a Fellow of the Australian Institute of Company Directors.

Ms Phillips is also a board member of Australian Children’s Education and Care Quality Authority (ACECQA), a board member of Uniting AgeWell and a board advisor to Alzheimer’s Australia (Victoria). ●


– 9 –

CORPORATE GOVERNANCE

CO

RP

OR

ATE

G

OV

ER

NA

NC

E

NO

RTH

ER

N

HE

ALT

H

BO

AR

D

Corporate GovernanceAPPOINTMENT OF DIRECTORSTerms of appointment vary from one to three years, at an annual salary set by the Minister in accordance with guidelines issued by the Victorian Public Sector Commission.

Board changes during the financial year were as follows:

• On the recommendation of the Minister for Health, the Governor-in-Council appointed Jennifer Williams as Chairperson from 1 July 2015 to 30 June 2018.

• On the recommendation of the Minister for Health, the Governor-in-Council appointed Juliann Byron as Director from 8 December 2015 to 30 June 2018.

ROLE OF THE BOARDThe role of the Board is to exercise good governance in the achievement of Northern Health’s stated objectives.

Key aspects of this governance role include:

• Setting the organisation’s strategic direction.

• Establishing a policy framework and primary policy.

• Appointing and monitoring the performance of the Chief Executive.

• Evaluating organisational performance.

• Ensuring organisational accountability and compliance with legislative requirements.

• Evaluation of the Board’s own effectiveness in governance.

The Directors contribute to the governance of Northern Health collectively as a Board by attending to business through meetings and a range of informal processes throughout the year.

In addition to attending Board meetings Directors contribute through participation in or chairing

the various committees of the Board. Directors also attend significant functions and ministerial events within Northern Health and externally with external stakeholders.

The Board meets monthly. There were 11 Board meetings held in the financial year 1 July 2015 to 30 June 2016.

BOARD MEETINGS AND ACCESS TO MANAGEMENT

At Board and committee meetings, the Executive and other senior members of staff regularly present papers relevant to their areas of responsibility in the health service. Between meetings, individual Board members have contact with management through committee or project involvement and are contacted by the Chief Executive Officer on major issues. Directors undertake site visits to Northern Health’s separate campuses in order to view first-hand the activities and services provided at hospitals and facilities.

DELEGATION OF FUNCTIONSThe by-laws provide for the delegation of duties by the Board. The Board has approved a detailed Delegations Policy, enabling designated Northern Health Executives to perform their duties through the exercise of specified authorities.

BOARD COMMITTEES

Directors lend their expertise to the operations of committees of the Board and in this way some of the general functions of the Board are delegated to small groups of Directors.

Directors and members of the Northern Health Executive were members of committees as follows:

Audit and Risk CommitteeMs Sabine Phillips - Director (Chair)

Ms Jennifer Williams - Board Chair

Mr Brian Joyce - Director

Ms Juliann Byron – Director (from February 2016)

The following executive staff attend this Committee:

Mr Siva Sivarajah - Chief Executive Officer

Mr Colin Holland – Interim Chief Financial Officer (until February 2016)

Mr Basil Ireland – Chief Financial Officer (from April 2016)

Dr Alison Dwyer – Chief Medical Officer (from November 2015)

Ms Michelle Fenwick – Executive Director, People and Culture (from September 2015)

Meetings were also attended by representatives from Northern Health’s internal and external auditors.

The Audit and Risk Committee is responsible to the Board for the provision of independent assurance and advice on the financial reporting process, including the application of accounting policies, the risk management system, the system of internal controls, and compliance with laws, regulations and the Code of Conduct.

Finance CommitteeMr Brian Joyce - Director (Chair)


Mr Peter McWilliam - Director

Mr Jim Bailey - Director


Mr Colin Holland – Interim Chief Financial Officer (until February 2016)

Mr Basil Ireland – Chief Financial Officer (from April 2016)

Ms Jenni Smith – General Manager Access, Performance and Partnerships / Chief Allied Health Officer


– 10 –

Ms Michelle Fenwick – Executive Director People and Culture

Ms Jodie Ashworth – General Manager Surgery, Women’s and Children’s, Operating Theatres and ICU / Chief Nursing Officer (from March 2016)

The Finance Committee is responsible to the Board for ensuring that financial and asset management strategies and policies enhance the productivity and performance of Northern Health in line with Government policies and directives. In addition the committee ensures that Northern Health adheres to its financial, business and strategic plans, addresses the statement of priorities, and operates within its budget.

Strategy Planning and Workforce Committee

The Strategy, Planning and Workforce Committee was disbanded after July 2015.

Quality Committee

Dr Alison Lilley – Director (Chair)


Ms Sabine Phillips – Director

Mr Siva Sivarajah - Chief Executive

Dr Kwang Lim - Chief Medical Officer (until October 2015)

Dr Alison Dwyer – Chief Medical Officer (from December 2015)

Ms Jenni Smith – General Manager Access, Performance and Partnerships / Chief Allied Health Officer

Ms Jodie Ashworth – General Manager Surgery, Women’s and Children’s, Operating Theatres and ICU / Chief Nursing Officer (from March 2016)

The Quality Committee is responsible to the Board for ensuring that effective and accountable systems are in place to monitor and improve the quality and effectiveness of the health services provided by Northern Health. The committee ensures that any systemic problems are identified and addressed in a timely manner, and that the organisation strives to continuously improve quality and foster innovation.

Remuneration and Appointments CommitteeMs Jennifer Williams - Board Chair (Chair)

Mr Brian Joyce – Director

Associate Professor John Fitzgerald – Director

The role of the Remuneration Committee is to advise and make recommendations to the Board in relation to executive and senior staff remuneration, performance and recruitment.

Patient Experience and Community Advisory Committee

Associate Professor John Fitzgerald - Director (Chair)

Mr Peter McWilliam - Director

Mr Jim Bailey - Director

Mr Siva Sivarajah - Chief Executive

Dr Alison Dwyer – Chief Medical Officer (from December 2015)

Ms Jenni Smith – General Manager Access, Performance and Partnerships/Chief Allied Health Officer

Ms Anastasia Ah Tong – Consumer representative

Ms Maureen Canzano – Consumer representative

Ms Fiona Micelotta – Consumer representative

Ms Nurcihan Ozturk – Consumer representative

Ms Dalal Sleiman – Consumer representative

Dr Ken Ekersall – Consumer representative (until September 2015)

Ms Rahimah Mah – Consumer representative

Mr Russ Pata – Consumer representative (until April 2016)

Ms Donna Wright – Consumer representative

Mr Peter Uzande – Consumer representative (from November 2015)

Mr Tom Cobban – Consumer representative (from April 2016)

Ms Jennefer Williams - Consumer representative (from April 2016)

The purpose of this Committee is to advise the Board on strategies to enhance and promote consumer and community participation at all levels within the health service. The Committee seeks to enhance the Board’s ability to advocate on behalf of the communities served by Northern Health.

Primary Care and Population Health Advisory CommitteeAssociate Professor John Fitzgerald - Director (Chair)

Mr Brian Joyce – Director

Ms Juliann Byron – Director (from February 2016)


Ms Jenni Smith – General Manager Access, Performance and Partnerships/Chief Allied Health Officer

Mr Phillip Bain - Chief Executive Officer, Plenty Valley Community Health

Ms Suzanne Miller - CEO Nexus Primary Health

Mr Neil Cowen - Chief Executive Officer, Dianella Community Health

Mr Tim Fry - Area Manager Aged Services and Northern Area, Department of Health and Human Services, and West Metropolitan Region

Mr Neville Kurth - Manager Health, Access and Bushfire Recovery, City of Whittlesea

Ms Margarita Caddick - Director City Communities, Hume City Council

Mr John Dermanakis – Manager, Northern Area Mental Health Service

Ms Hayley Carr – Manager, Northern Region, Royal District Nursing Service

Mr Max Lee - Executive Officer, Hume Whittlesea Primary Care Partnership

Ms Julie Watson - Executive Officer, North East Primary Care Partnership

Ms Helen Riseborough - Chief Executive Officer, Women’s Health in the North

Ms Robin Whyte - Chief Executive Officer, Eastern Melbourne Primary Health Network (from December 2015)

– 11 –

CORPORATE GOVERNANCE

CO

RP

OR

ATE

G

OV

ER

NA

NC

E

Ms Jodi Briggs - Director Strategy, Commissioning and Innovation, Eastern Melbourne Primary Health Network (from December 2015)

Ms Julie Borninkhof - Executive Director, Primary Care Improvement, North West Melbourne Primary Health Network

Ms Elise Davies - Executive Innovation and Integration, North West Melbourne Primary Health Network

The Population Health Advisory Committee assists the Board with inter-agency planning and the integration of health services in the catchment area - particularly as it relates to the primary care and acute sectors. The committee also assists the Board in identifying community health needs with a view to establishing innovative programs to improve the accessibility and responsiveness of Northern Health

services. This includes creating direct service partnerships with other health and community services, commissioning research in relevant areas and working in partnership with other local agencies on health promotion schemes.The Population Health Advisory

DIRECTOR’S ATTENDANCE FOR BOARD AND SUB COMMITTEE MEETINGS: 1 JULY 2015 - 30 JUNE 2016

No. of Meetings

Ms Jennifer Williams

Ms Sabine Phillips

Mr Brian Joyce

Mr Peter McWilliam

Associate Professor John Fitzgerald

Dr Alison Lilley

Mr Jim Bailey

Ms Juliann Byron (commenced December 2015)

Total

32

26

38

38

22

15

29

12

Board Finance Committee

Audit and Risk Committee

Quality Committee

Strategy Planning and Workforce Committee

Patient Experience

and Community

Advisory Committee

Primary Care and

Population Health

Committee

Remuneration and

AppointmentsCommittee

12

12

11

12

12

10

6

9

6

13

9

2

13

13

0

2

12

2

7

5

7

7

5

0

1

1

2

7

2

5

0

2

1

5

1

0

1

0

1

1

1

1

1

1

0

5

2

0

1

5

4

0

5

0

5

1

0

3

0

5

0

0

2

1

1

0

1

0

1

0

0

0


– 12 –

Siva SivarajahChief Executive Officer

Commenced 17 August 2015

Siva Sivarajah brings a wealth of knowledge, experience, partnership and leadership capabilities to Northern Health. Siva is a highly skilled health care leader with over 25 years’ experience within Victorian Health Services. For the last eight years, Siva was employed as the Chief Operating Officer for Monash Health (formerly Southern Health).

Siva has led the delivery of comprehensive health care services including acute, sub-acute, mental health and community-based services. These services are provided through Monash Medical Centre, Dandenong Hospital, Casey Hospital, Moorabbin Hospital/Monash Cancer Centre, Kingston Centre and a further 40 different small to medium size sites.

In addition to Siva’s leadership and health care management capabilities, he is also skilled in the delivery of major capital projects and engineering/infra-structure services within Monash Health. ●

Jodie Ashworth General Manager, Surgery, Women’s and Children’s, Operating Theatres and ICU and Chief Nursing and Midwifery Officer

Commenced 29 February 2016

Since 1989 Jodie Ashworth has worked in the public health sector across three states of Australia in services ranging from small, rural to large tertiaries. Since her commencement at Northern Health in 2014, Jodie has consistently and clearly demonstrated a synergy between her values and purpose with that of Northern Health’s strategic direction and has delivered on all set key performance indicators from the Executive and Board.

Jodie is passionate about nursing and midwifery as a profession and considers it paramount that Northern Health continues to develop standards through teaching, research and innovative practice. Jodie has had significant managerial and operational experience at executive and senior management level that has involved financial accountability, development of service capability, responsibility for patient access and flow and multi-disciplinary team management.●

Robina Bradley General Manager, Bundoora Extended Care Centre


Robina Bradley brings a diverse and unique range of program management experience with over 25 years in the industry working with clinicians in the implementation of business and quality improvement and leading major change. Robina has worked at both state and national level across acute, primary and community services and government departments in the implementation of innovative programs, tenders and business cases.

Robina commenced at Northern Health in 2014 after a stint at The Commission for Hospital Improvement and has contributed to the overall leadership and management for palliative care, rehabilitation and aged care services with joint responsibility with the Professor/Clinical Program Director. Robina has improved the program’s operations to maximise business, operational, people and financial management to deliver the best patient care.

Robina is a member of The College of Health Service Administration, Australia Institute of Company Directors, Royal College of Nursing and has post graduate qualifications in Critical Care and Emergency Nursing and Health Systems Management. Robina’s particular strengths are in building relationships, governance, strategy and working with operational teams to develop new models of care to achieve activity targets and performance standards. ●

Northern Health Executive

– 13 –

NORTHERN HEALTH EXECUTIVE

NO

RTH

ER

NH

EA

LTH

EX

EC

UTI

VE

Alison DwyerChief Medical Officer

Commenced 19 October 2015

Alison Dwyer commenced as the Chief Medical Officer for Northern Health in September 2015, with oversight of the Medical staff and Quality portfolios.

Her previous experience includes Medical Director for Quality, Safety and Risk Management at Austin Health for five years (2010-2015), and five years as the Director Medical Services at Royal Melbourne Hospital (2006-2010).

Alison has also held roles in the Department of Health Victoria Quality Unit and a number of metropolitan and rural health services in medical administration. She is currently surveyor for Australian Council on Healthcare Standards. Alison holds a medical degree (MBBS) from Melbourne University, dual management masters from Monash University (MBA, Master Health Services Management), Fellowship of the Royal Australasian College of Medical Administrators 2006 (FRACMA) winning the top national prize for outstanding Fellow in the FRACMA examinations, Fellowship of the Australian College of Health Service Managers (FCHSM) and is a Graduate member of the Australian Institute of Company Directors (GAICD). ●

Michelle FenwickExecutive Director, People and Culture

Commenced April 2016

Michelle Fenwick has worked in the public and private health care industry for over 20 years in operational, management and consulting roles. She has an extensive background in sustainable workforce planning within health care and has implemented a number of human resource management systems across large tertiary and speciality hospitals. Michelle is passionate about the positive impact which People and Culture is able to deliver to an organisation, especially when our people are our number one asset.

Michelle has a Masters in Administration - Human Resource Management Industrial Relations and has candidature for her Doctorate in Business Administration research topic: Impact of nurse casualisation.

She is an Associate Fellow with the Australian College of Administration and earlier this year stepped down from the Australian Health Services Financial Management Association (AHSFMA) board after eight years of service. ●

Basil Ireland Chief Financial Officer

Commenced 29 March 2016

Basil Ireland is a highly motivated and results driven CFO, with a proven track record of success in large and complex, private and public organisations. With over ten years’ experience working at a senior financial capacity in health, he possesses a powerful suite of finance, leadership and senior executive capabilities in the areas of financial management, client data management, business support and environmental support services.

Basil has a strong capability to lead and develop high performance teams and build productive and effective relationships based on the delivery of results and strong financial advice. He is committed to providing transparency to stakeholders, demonstrating that decisions are made equitably and working in a collaborative manner. ●



– 14 –

Belinda ScottGeneral Manager, Broadmeadows Health Service and Craigieburn Health Service


Belinda Scott is a skilled executive with expertise in strategic, operational and large program service delivery, and was appointed to the position of General Manager, Broadmeadows Health Service and Craigieburn Health Service in 2016. A transformational leader with a strong clinical background, Belinda commenced with Northern Health in 1999, and has worked in varied roles including Program Director, Emergency Services and Director, Quality, Safety and Clinical Governance. She has also held nursing positions at Western Health, and worked as a Risk Consultant with the Victorian Managed Insurance Authority.

Belinda is passionate about engaging others to achieve performance outcomes, and her skills and capabilities include the service redesign, financial reform, capability building and change management. Her industry experience is complemented by continuous learning, and has a Masters in Nursing and a Graduate Diploma in Health Service Management, along with significant executive leadership professional development and public speaking engagements. ●

Jenni Smith General Manager, Access, Performance and Partnerships

Chief Allied Health Officer

Jenni Smith has been a member of the senior executive team at Northern Health since 2009. In February 2016 she was appointed to the position of General Manager, Access, Performance and Partnerships and Chief Allied Health Officer. She has an extensive background in the delivery of health care services in both the public and private sectors and has served on numerous industry and professional committees. This experience has included the development and implementation of sustainable quality improvement systems and integrated care pathways.

Jenni is committed to building strong collaborative partnerships to improve community health outcomes in Melbourne’s north. ●

Doris Vella General Manager, Emergency, Medical Beds and Cardiology

Commenced 25 April 2016

Doris Vella joined Northern Health as General Manager, Emergency, Medical Beds and Cardiology in April 2016.

Doris has over 15 years of management experience in senior health care roles where she has demonstrated success in achieving both divisional and organisational outcomes in both operational and strategic roles across complex health care settings. Her previous appointments include, Director of Nursing and Operations (acute, subacute, community and site management experience) and she has acted in various roles such as Executive Director of Nursing and Allied Health, and Divisional Director.

Doris is a health care leader capable of empowering staff from all disciplines and backgrounds to implement new models of care and improve clinical practice.

She is passionate about leading quality healthcare and ensuring the patient is at the centre of all that we do. ●


Other members of the Northern Health Executive in 2015-16

· Robert Burnham – Current· Janet Compton – until 21 August, 2015· Kwang Lim, as Chief Medical Officer – until 19

October 2015· Michelle McDade – until 18 September, 2015· Clare McGuiness – until 18 September, 2015· Zemeel Saba – until 28 August, 2015

SECTION HEADING

– 15 –

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

SE

CTI

ON

H

EA

DIN

GS

EC

TIO

N

HE

AD

ING

Organisational Structure


Office of Chief ExecutiveDirector, Engagement, Foundation and Corporate Communications

Ryan Brown Director, Capital, Mary DeGori

Director Corporate Governance,Roger Nicholls

Chief Information Officer, Bill O’BrienDirector, Planning, Chelsea Simpson Chief Legal Officer, John Snowdon

Director, Engineering, Colin Woodward

Chief Medical Officer

(CMO) Quality and Safety

Alison Dwyer

ProfessionalGovernance

Chief Medical Officer, Alison Dwyer

Chief Allied Health Officer, Jenni Smith

Chief Nursing and Midwifery Officer,

Jodie Ashworth

ChiefExecutive

Siva Sivarajah

DivisionalDirector

(Chair)

Divisional Director,Medicine

Divisional Director,Surgery

Divisional Director,Women’s and

Children’s Services

Divisional Director,

Emergency Services

Divisional Director,

Ambulatory Services

Acting Divisional Director, Sub Acute Services

Director, Clinical Practice

ImprovementOperational

Director

Operational Director

Director, Ambulatory and

Community Services

Site Manager(DDON)

Site ManagerBHS

(DDON)

Director, Quality and Service Improvement



Director, Risk Management

DDON

Director,Allied Health

Director, Access and Partnerships

Site ManagerCHS

(DDON)

Director, People and Culture

Operations

Director, FinancialManagement

Director, Accounts

Management

Director, Decision Support

Acting Director, Client Data

Management

Director Environmental

Services

General Manager

(CNMO)Surgery Womens and Children’s Operating

Theatres and ICU

Jodie Ashworth

General Manager

Emergency, Medical Beds and Cardiology/

DON

Doris Vella

General Manager

(CAHO)Access, Performance

and Partnerships

Jenni Smith

General ManagerBECC/DON

Robina Bradley

General Manager

BHS/CHS/DON

Belinda Scott

Chief Financial Officer

Basil Ireland

Executive Director

People and Culture

Michelle Fenwick


– 16 –

Northern Health is the major provider of acute, maternity, sub-acute and ambulatory

specialist services in Melbourne’s north. Our campuses include Broadmeadows Health Service, Bundoora Extended Care Centre, Craigieburn Health Service, Panch Health Service and The Northern Hospital in Epping.

We provide a range of inpatient and outpatient services, including:• Emergency and intensive care• Acute medical, surgical and

maternity services• Sub-acute, palliative care and

aged care• Specialist clinics and

community-based services.

Northern Health is situated in the northern growth corridor and our catchment includes three of Victoria’s six growth areas: the City of Hume, the City of Whittlesea and the Shire of Mitchell.

The Northern Growth Corridor population is expected to grow by 59 per cent, or over 230,000 people, by 2031. This includes 19 per cent growth between 2016 and 2021, an increase of over 73,000 people, within the next five years.1

Northern Health treats patients from many different socio-economic backgrounds, who are born in more than 130 countries and speak over 120 different languages. The breadth of complex disease in the community is significant, with residents of the outer north having generally poorer health status, including higher than average levels of type 2 diabetes, heart disease and high-blood pressure, higher rates of smoking and drug-related issues and significantly higher rates of Family Incident Reports submitted by Victoria Police.2

Our busy emergency department treated over 85,000 patients in 2015-16, including an average of 56 paediatric patients and 63 ambulance arrivals each day. Our dedicated staff assisted with 69 births per week and a record breaking 3589 babies were delivered in the past 12 months. Our Outpatient Department continues to provide over 3900 appointments per week and we perform around 288 elective surgeries each week and 113 emergency operations.

Northern Health is working hard to achieve our vision of providing outstanding health care for our community and will continue to develop services, and pathways to services, to ensure our patients can access the right care, at the right time by highly skilled health professionals.

Our Services

1 Department of Environment, Land, Water and Planning (2015), Victoria in Future 2015, accessed at: http://www.dtpli.vic.gov.au/data-and-research/population/census-2011/victoria-in-future-2015 2 Victoria Police, Family Incidents Reports 2009/10 – 2013/14, accessed at: http://www.police.vic.gov.au/content.asp?a=internetBridgingPage&Media_ID=72311

– 17 –

OUR SERVICES

OU

R

SE

RV

ICE

S

Admitted Patients, Sub Acute & Emergency Services

$381m

Ambulatory and

Community

Medical, Emergency

and Cardiology Services

Oncology

Broadmeadows Health Service

Nursing and Medical

Workforce

Hospital Admission Risk

Program

Craigieburn Health Service

Quality and Safety

Intensive Care Sevices

Access, Performance and

Partnerships

Bundoora Extended Care

Centre

Surgical, Women’s,

Children’s and ICU Services


– 18 –

Non Admitted Services $21m

Breast Feeding Centre

Paediatric Medicine

Pastoral Care

Thoracic Surgery - Non-Admitted

Plastic and Reconstructive

Surgery

Discharge Planning and

Support Service

Diabetes Services and

Hand Therapy

Pharmacy

Ambulatory Care Entry and Triage

Service

Outpatients

Birthing Support

Allied Health Education

– 19 –

OUR SERVICES

OU

R

SE

RV

ICE

S

Aged Care Services $15m

Ambulatory and

Community

Ian Brand Nursing Home

Aged Care Assessment

Services

Bundoora Extended Care

Centre

Home Care Packages


– 20 –

Other $35m

Capital Programs

Environmental Services

People and Culture

Retail

Finance and Data

Management

Engagement, Communications

and Fundraising

Medical Support Services

Specific and Restricted

Purpose Funds

Diagnostic Services

Engineering and Building

Services

Patient Experience

and Consumer Participation

Allied Health Services

Depreciation

ICT

ICT

– 21 –

OUR ACHIEVEMENTS

OU

R

AC

HIE

VE

ME

NTS

Priority One

Our AchievementsPROVIDE A BALANCED MIX OF QUALITY SERVICES

At Northern Health we strive to deliver high quality health services that ensure

the very best outcomes for our patients. As our services continue to grow to accommodate increased demand from our community, we carefully monitor and assess our programs in order to increase the efficiency of our services and reduce clinical risk.

Good health is just a tele-call awayNorthern Health, in partnership with The Kilmore and District Hospital and Seymour Health, has launched a new Tele Health Service, which will enable patients in rural communities to receive more comprehensive emergency treatment closer to home.Tele Health involves the use of digital information and communication technologies, such as computers and mobile devices, to manage a patient’s health and diagnosis remotely, reducing the need for frequent face to face consultations.Urgent Care Centres at The Kilmore and District Hospital and Seymour Health are open 24 hours a day, seven days a week, and are operated by highly skilled nursing staff able to provide expert emergency care. In addition to the service provided by local GP’s, patients may now be triaged and diagnosed by a doctor via a video conferencing link between the Centre and The Northern Hospital Emergency Department.This new initiative enables Northern Health to support staff at Kilmore and Seymour by providing clinical consults electronically, reducing unnecessary travel time and improving the patient outcome.

Northern Health teams up with Jacana School for AutismOver 30 secondary students from

the Jacana School for Autism have added a splash of colour to the walls in The Northern Hospital Outpatient Department with some hand crafted artwork. Northern Health believes in forming strong relationships with local schools to continue to provide outstanding health care to the local community. By engaging with local schools we have been able to brighten up the Outpatients Department with stunning artwork and enhance our patient experience.

Record baby boom in Melbourne’s northNorthern Health has delivered the highest number of babies in a single month with 329 newborns delivered at The Northern Hospital in June, and a record 3,589 born over the last 12 months.The number of births at The Northern Hospital has increased from 3,420 in the 2014-15 financial year, to 3,589 in the 2015-16 financial year. Northern Health’s Maternity Service provides expert maternity care to a unique, multicultural population which is expected to grow by more than 220,000 residents by 2031.

Environmental performanceNorthern Health has been actively working towards reducing the impact our activities have on the environment, and continue to collaborate with both internal and external stakeholders to achieve this. In the past 12 months we have engaged with staff members and service providers in the conversation about the interactions between the environment and public health. We collaborate with environmental sustainability experts in health care at state, national and international levels to identify and achieve best practice. Our waste management practices are continuing to evolve to both reduce waste generated and capture additional recycling streams.

We have recently implemented a food waste recycling unit that will prevent food waste from entering landfill with associated Green House Gas reductions of up to 90 per cent. In addition, we have decreased our paper use by approximately eight per cent and implemented more than 15 projects. These leadership and waste management practices contribute to public health by ensuring our community has a healthy environment in which to survive and thrive.

Improving care for complex patients at Bundoora Extended Care Centre

The specialist geriatric behavioural management unit, situated in the Kath Atkinson Wing of Bundoora Extended Care Centre, is a 15 bed secure ward providing comprehensive geriatric assessment to older patients with behavioural and psychological symptoms of dementia. Patients have an average length of stay of six weeks and the unit continues to experience an increase in demand. There has also been a significant increase in the complexity and severity of needs of the people requiring the service and it is expected that demand will continue to grow with the increasing prevalence of dementia.Over the last year, Northern Health has invested in training to assist staff identify and focus on safety including the introduction of 24 hour security services on site and has continued to embed a person centred approach into our model of care.The work has been developed in a collaborative partnership between the Safety First team, nursing, senior medical, and allied health staff and has increased skills, knowledge and yielded substantial benefits for the team and the patients we care for.●


– 22 –

– 23 –

OUR ACHIEVEMENTS

OU

R

AC

HIE

VE

ME

NTS

Our AchievementsFULLY UTILISE OUR RESOURCES AND DEVELOP OUR INFRASTRUCTURE

Making the best use of Northern Health’s resources and

infrastructure is a critical step in our transformational journey, enabling us to meet the future demand for health care services from the fast growing northern community.

Private Practice Midwives provide greater continuity of carePregnant women in Melbourne’s north are now able to give birth under the care of a private midwife as part of a new pilot program at Northern Health. The Collaborative Midwife Pilot Project, launched in May this year, provides greater continuity of care, and allows women to have the same midwife throughout their pregnancy journey and birth of their baby, through to discharge.The program assists with flow and access for maternity patients and helps to ensure our women are seen in the right place at the right time by skilled health professionals.

Short Stay Unit for youngest patientsOn 28 September 2015, Northern Health opened a new four bed Paediatric Short Stay Unit (PSSU), located within the Children’s Ward at The Northern Hospital. Currently admitting between 180 – 210 children each month, this space provides improved patient experience and access for some of our youngest patients.Children are cared for and observed in a more comfortable environment than the busy Emergency Department in a ward designed to admit children for less than 24 hours and observe and assess children to establish whether they need admission or are safe to

go home. This has also improved patient flow and accessibility within Northern Health’s Paediatric Emergency Department.

The opening of MAC The Northern Health Maternity Assessment Centre (MAC) was officially opened on 4 November 2015 at The Northern Hospital. This project was a result of concerns that pregnant women weren’t always being seen in the right place at the right time. MAC is staffed by two midwives, seven days per week, from 9 am – 5 pm.MAC is for antenatal women requiring increased surveillance with high risk pregnancies, as well as unplanned admissions for assessment of labour and fetal wellbeing. This helps to ensure that the Birth Suite is essentially for birthing women, and assists with flow through the unit.

Multimillion dollar expansion at The Northern HospitalOn 9 June 2016 The Northern Hospital IPU Stage 1 ‘Tower’ development was completed.

The new three storey facility at The Northern Hospital now connects a 32-bed inpatient unit to the main hospital via an aerial link, and encompasses state-of-the-art, brand new medical equipment, a mix of single and double patient rooms, two negative pressure isolation rooms, two bariatric rooms, natural light throughout the ward, including windows in each patient room and a relaxing patient lounge.

Northern Health is increasing our services and capacity to ensure that we can continue to provide outstanding health care for the northern community. The new T2 Ward caters for a mix of both general medical and respiratory

patients at Northern Health, with the aim of becoming a full Respiratory Unit by 2017.By opening T2 and reconfiguring our wards, Northern Health can continue to provide patients with the right care, at the right time, in the right space, by skilled health care professionals.

Tap On, Tap Off

In May, Northern Health installed a Tap On, Tap Off system at The Northern Hospital. This system provides the ability for staff to swipe their Northern Health ID Cards to quickly access essential computer programs. This new system is designed to address the congestion around shared computers and allow for easier, more widespread ICT access.

Opening of Unit 1 at Broadmeadows Health Service

In October 2015, Northern Health opened Unit 1, an acute medical and surgical ward at Broadmeadows Health Service.

This ward encompasses both medical and surgical beds and offers greater access to theatre for patients who require overnight care and increased continuity of care for patients who need access to services such as dialysis and rehabilitation. Unit 1 has admitted over 750 patients in the past six months, and will help us continue to meet the needs of our community now and into the future.

Northern Health has a strong commitment to our satellite sites, and the allocation of funding in the 2016 state budget to expand the Broadmeadows Surgical Centre will help us to assist more residents in Melbourne’s north to receive surgery locally, in a timely manner ●


– 24 –

– 25 –

OUR ACHIEVEMENTS

OU

R

AC

HIE

VE

ME

NTS

Our AchievementsSTRENGTHEN OUR ORGANISATIONAL CAPABILITY

By strengthening Northern Health’s organisational capability, we enhance our

ability to provide outstanding health care for our community. Delivering sound financial performance, becoming a leader in clinical research and education, growing our partnerships and engaging our community all contribute to improved health outcomes in the north.

Accreditation periodic review

In September 2015 Northern Health underwent a periodic review by the Australian Council on Health Care Standards (ACHS) as part of our four year cycle for accreditation.

This review included a full assessment of:

• Standard 1- Governance for Safety and Quality in Health Service Organisation

• Standard 2 - Partnering with Consumers

• Standard 3 - Preventing and Controlling Health Care Associated Infections

This review surveyed all of the recommendations from the previous Organisation Wide survey in 2014 and the mandatory requirements of the EQuIPNational Standards 11-15.

Northern Health achieved an excellent result where all actions from all standards being assessed (133) were

given a rating of satisfactorily met and all previous 32 recommendations were addressed “most satisfactorily” and therefore closed.

What is most pleasing is that Northern Health was upgraded to a Met with Merit in 12 of the actions in the following areas:

Standard 1 Governance - Five Met with Merits• Regular reports on safety

and quality indicators and quality performance data are monitored by the executive level of governance

• An organisation risk register is used and regularly monitored

• An organisation quality management system is used and regularly monitored

• Systems are in place to analyse and implement improvements in response to complaints

• Data collected from patient feedback systems are used to measure and improve health services in the organisation.

Standard 2 Partnering with Consumers - Four Met with Merit’s• Consumers and/or carers are

involved in the governance of the health service organisation

• Consumers and/or carers provide feedback on patient information publications prepared by the health service

organisation (for distribution to patients)

• Consumers and or carers participate in the design and redesign of health services

• Clinical leaders, senior managers and the workforce access training on patient centred care and the engagement of individuals in their care.

Standard 3 Preventing and Controlling Health Care Infections - Three Met with Merits• Workforce compliant with

current national hand hygiene guidelines is regularly audited

• Compliance rates from hand hygiene audits are regularly reported to the highest level of governance in the organisation

• Action is taken to address non-compliance, or the inability to comply, with the current national hand hygiene guidelines.

Celebrating outstanding volunteers

During National Volunteer Week, Northern Health is celebrating the valuable contribution of our Northern Health volunteers. Northern Health has over 350 passionate and dedicated volunteers helping to provide outstanding health care for our community.

They provide a variety of important services both out in the community and across our campuses, including fundraising, offering spiritual support, guiding patients and


– 26 –

Our Achievements (cont’d)

visitors, maintaining gardens in our courtyards and supporting patients in Emergency and Outpatient Departments.

Northern Health simply could not provide all our services, put on great events, or offer the level of care that we do without our dedicated team of volunteers, and we thank them for helping provide outstanding health care for our community.

Open Access Board Meeting

On Tuesday, 1 December 2015, the Northern Health Board hosted an Open Access Board Meeting for our consumers, volunteers and staff to enable direct communication with Board Members and other Northern Health Senior Leaders.

Feedback from our community

is essential to assist Northern Health in improving our services and helping us understand the needs of the community. This Open Board Meeting was the first time the format was changed to include round table discussions and an open microphone for consumers to voice their feedback and give suggestions for improvement.

Over 70 people were in attendance and the meeting opened with short presentations about Northern Health’s performance and future demands as well as recent successful consumer led improvement activities. The round table discussions were very informative and engaging, enabling community members to discuss specific highlights they have experienced at Northern Health,

service improvement priorities and how we can communicate more effectively with our diverse community.

EMERGO exercise

Northern Health conducted an External Disaster (Code Brown) training exercise at The Northern Hospital on 30 September 2015.This exercise included participants from Ambulance Victoria, Metropolitan Fire Brigade, Victoria Police, Victorian Medical Assistance Teams the Department of Health and Human Services, and allowed Northern Health to test our systems and processes and provide a learning opportunity for all involved. ●

– 27 –

OUR ACHIEVEMENTS

OU

R

AC

HIE

VE

ME

NTS

Our AchievementsATTRACT AND DEVELOP A HIGH PERFORMING WORKFORCE

Developing, attracting and retaining a high-performing workforce is integral to

Northern Health’s ability to meet the rising demand for health services in our rapidly expanding community. As the demand for health services grows, so too does the need for innovative and flexible workforce models and our work continues to build staff capability and help us become an employer of choice with a values-driven culture.

New medical interns join Northern HealthIn 2016, 41 passionate and dedicated medical interns commenced at Northern Health, from over 1100 applications, working across a range of health disciplines, including Emergency, General Medical and Surgical areas.Northern Health is committed to meeting the complex and challenging health care needs of our patients and continue to attract high quality medical interns who come to learn, and choose to live, within the northern community. We are proud to play such an important role in the training and professional development of junior doctors in Victoria.Award winning doctor providing expert careIn 2015, Northern Health clinician Dr Anastasia Vlachadis Castles was named the Postgraduate Medical Council of Victoria Junior Doctor of the Year!

The prestigious award recognises Junior Doctors who have made outstanding contributions to the field of medicine and research in Australia, and Dr Castles is a prime example of the passionate and dedicated staff we have here at Northern Health.

Dr Castles has positively impacted the care of some of our most complex patients, particularly as a part of our cardiology and research teams. She has also made significant contributions to the education of new medical students by implementing the Medical Student Mentoring Program, and she continues to help to supervise and teach medical students throughout their placements at Northern Health.

Melbourne Medical School Academy of Clinical TeachersIn October 2015, six Northern Health staff members were welcomed into the Melbourne Medical School Academy of Clinical Teachers in recognition of their highly regarded and prolonged contribution to the training of medical students. Professors Russell Buchanan and Wei Qi Fan were admitted as Fellows, along with Professor Doug Crompton and Doctors Barbara Hayes, Kurt Wendelborn, and Elizabeth McCarthy.

The role of the Academy is to promote excellence in clinical teaching and professional engagement with the University’s health sector colleagues, and members are recognised for the important leadership role they play in the education of medical students within the health service.

New Nurse PractitionersTwo Northern Health Nurses, Anne Rodda and Lisa Bethune, were endorsed as Nurse Practitioners in 2016. Anne has been working as a Nurse Practitioner Candidate at The Northern Hospital and has been a key in the development of the Stroke Service provided at Northern Health over the previous

three years. Lisa is part of Northern Health’s Palliative Care Consultancy team and has also been working towards endorsement over the last three years.

New Professor for Northern HealthIn 2016, Northern Health was delighted to congratulate Professor Peter Barlis, who has been appointed by The University of Melbourne as a Professor in our Cardiology team.

Professor Barlis has been at Northern Health since 2008 and his recent appointment is testament to the dedication to research and innovative works in the Cardiology Department at Northern Health. Collaboratively, he has worked with the Cardiology Department to successfully build a strong research profile for Northern Health which has attracted international exposure.

Northern Health Clinical Leadership ProgramThis Clinical Leadership Program is designed to provide nominated staff with an opportunity to receive structured developmental experiences to adequately prepare them for a clinical leadership role with Northern Health.The Northern Health Clinical Leadership program gives high performing staff from different wards an opportunity to work alongside a Clinical Leader and Northern Health Mentor for a designated period of time, to gain exposure to the types of tasks and responsibilities experienced in a clinical leadership role. Development of clinical staff at Northern Health is integral to the growth of our organisation and our ability to build capability in our staff to take on clinical leadership roles. ●


– 28 –

Attestation for compliance with the Ministerial Standing Direction 4.5.5– Risk Management Framework and Processes

I, Siva Sivarajah, Chief Executive Officer, certify that Northern Health has complied with Ministerial Direction 4.5.5 – Risk Management Framework and Processes. The Northern Health Audit Committee has verified this.

Siva SivarajahChief Executive OfficerNorthern Health25/08/2016

– 29 –

STATEMENT OF PRIORITIES

OU

R

AC

HIE

VE

ME

NTS

STA

TEM

EN

T O

F P

RIO

RIT

IES

Statement of Priorities

To implement the Patient Experience plan developed in conjunction with the Patient Experience and Consumer Participation Committee (PECAC). This will help ensure we place patients first in all improvement efforts.

To aim for an increase in the Net Promoter Scores achieved by Northern Health’s acute services as provided through patient feedback.

To develop and implement a strategy that enhances the delivery of specialist palliative care in response to the VAGO 2015 Palliative Care Review recommendations. A key deliverable in 2015-16 will be to review and enhance the referral process for patients moving into palliative care.

To develop a comprehensive three year strategy for cancer services that includes early referral and integration with palliative care services.

Review and update Northern Health policies and procedures relating to family violence.

Development of education and training to front line staff to better identify and respond to patients disclosing family violence.

Domain Action Deliverable Outcome

Patient Experience and Outcomes

Drive improved health outcomes through a strong focus on patient-centred care in the planning, delivery and evaluationof services, and the development of new models for putting patients first.

Use consumer feedback and develop participation processes to improve person and family centred care, health service practice and patient experiences.

Develop an organisational policy for the provision of safe, high quality end of life care in acute and subacute settings, with clear guidance about the role of, and access to, specialist palliative care.

Demonstrate an organisational commitment to quality cancer services through engagement with the local Integrated Cancer Service and implementation of Optimal Care Pathways.

Strengthen the response of health services to family violence. This includes implementing interventions, processes and systems to prevent, identify and respond appropriately to family violence at an individual and community level.

In progressResults from the Open Access Board Meeting and outstanding items from the previous work plan are being compiled to inform 2016-17 work plan.

AchievedUptake of the Net Promoter Scores across inpatient areas is increasing each month. Work continues with managers to increase and sustain Net Promoter Score completion rates.

In progressPatients have been admitted to Unit 3 under the Healthlinks Program from the community. Further work in promoting the alternate pathway with patients and families is required. Palliative Care beds at The Northern Hospital have been implemented with all medical teams referring to the Integrated Palliative Care team. Further work is required to ensure timely referrals and care change occurs. This work will continue in 2016-17 to embed into practice.

In progressDraft strategic plan in development and to be circulated to internal and select external key stakeholders imminently.

In progressA multidisciplinary steering committee, including consumers and external expert stakeholders, has been established with approved terms of reference and commenced work on implementation of the Royal Melbourne Hospital Bendigo toolkit.

In 2015-16 Northern Health will contribute to the achievement of the government’s commitments by:


– 30 –

Statement of Priorities (cont’d)

To deliver the Safety First Plan and the Health and Wellbeing Plans and associated programs of work.

To implement the new and enhanced Employee Assistance Program (EAP) that Northern Health designed in 2014-15.

To collaborate with the Chair of our Medical Group and the Department in the design and development of appropriate care models. This work will build on the strategies articulated in the Safety First Plan.

To transparently monitor and report on incidents of occupational violence through the Health and Wellbeing Balanced Scorecard.Northern Health will ensure that appropriate reporting from the scorecard is publically available.


Governance, leadership and culture

Demonstrate an organisational commitment to occupational health and safety, including mental health and wellbeing in the workplace.

Ensure accessible and affordable support services are available for employees experiencing mental ill health.

Work collaboratively with the Department of Health and Human Services and professional bodies to identify and address systemic issues of mental ill health amongst the medical professions.

Monitor and publically report incidents of occupational violence.

In addition there is ongoing discussion regarding options for rollout of the the Royal Women’s Hospital toolkit along with White Ribbon accreditation and costings have been obtained. At present this work has been divided amongst working groups, and it is planned that roll out of this program will be staggered with a focus on an initial rollout across Emergency, Women’s and Children’s and Aged Care by the end of 2016.

AchievedThe Safety First KPI’s have been developed and will be reviewed in three months.Three Safety First Executive Committee meetings have occurred.OH&S metrics and workers compensation report complete.Next Step: Review committee structure and health and safety rep staff.

AchievedPositive feedback has been received re: the engagement of the new Employee Assistance Program provider.

AchievedThe pilot project is complete.Feedback and findings have been included in the 2016-17 Safety First Plan.

AchievedThe aggression management framework has been completed and tabled for Emeregency Management meeting in August, and the Executing meeting in September.

– 31 –


STA

TEM

EN

T O

F P

RIO

RIT

IES

To incorporate the management of occupational violence in detailed policy guidelines that are being developed to support the Safety First Plan. Northern Health will work in collaboration with the Department using our partnerships framework to develop appropriate processes and systems to implement these policy guidelines.

To deliver a bullying awareness education program as articulated in the Safety First Plan.

To transparently monitor and report on bullying and harassment issues and complaints through Health and Wellbeing Balanced Scorecard.

To implement a complaints KPI reporting framework at the program level in order to drive performance improvement at the unit level.

To implement the Northern Health Board Charter and Corporate Governance Framework.


Work collaboratively with the Department of Health and Human Services to develop systems to prevent the occurrence of occupational violence.

Promote a positive workplace culture and implement strategies to prevent bullying and harassment in the workplace.

Monitor trends of complaints of bullying and harassment and identify and address organisational units exhibiting poor workplace culture and morale.

Undertake an annual board assessment to identify and develop board capability to ensure all board members are well equipped to effectively discharge their responsibilities.

AchievedThe Northern Health Aggression Management Framework is complete, pending a number of items being amended and presented for endorsement at the August Emergency Management Executive Committee.Aggression management training pilot iscomplete and being reviewed.

AchievedVAGO requirements reviewed.Bullying and harassment placed on Northern Health Risk Register (Extreme risk rating).Northern Health OH&S Executive Committee and Board briefed.

In progressMonitoring for 12 month and complaints trends.Framework to be developed and implemented.- Communications complete.- Listed on risk register as

extreme.- Board Presentation in

September 2016.

AchievedFace to face training delivered to senior leadership staff.Bullying and harassment added to risk register as extreme and framework to be developed.VAGO requirements reviewed.

Achieved


– 32 –


To implement a capability framework that ensures appropriate clinical practice and leadership across Northern Health.

To implement all requirements in EquipNational Standard 3 Preventing and Controlling Healthcare Associated Infections. This will support delivery of this action.

To implement all requirements in EquipNational Standard 3 Preventing and Controlling Healthcare Associated Infections. This will support delivery of this action.


Safety and quality

Build workforce capability and sustainability by supporting formal and informal clinical education and training for staff and health students, in particular inter-professional learning.

Ensure management plans are in place to prevent, detect and contain Carbapenem Resistant Enterobacteriaceae as outlined in Hospital Circular 02/15 (issued 16 June 2015).

Implement effective antimicrobial stewardship practices and increase awareness of antimicrobial resistance, its implications and actions to combat it, through effective communication, education, and training.

AchievedExecutives have position descriptions mapped to the Statement of Priorities.Responsibility for KPI’s are included in budget and EFT performance reviews.

AchievedPoint Prevalence Survey for Intensive Care and Unit M on 7 June 2016.No further positive CPE cases identified. Point Prevalence Survey as per requirements of Department of Health conducted on 7 June 2016. All results were negative.

In progressSince April of this year:• Continued antimicrobial

stewardship rounds three times a week.

• Continued to make progress on the development of Northern Health-specific antibiotic guides:

o Completed rollout of the General Medicine Antibiotic Guides i.e. now available on PROMPT, GuidanceMS, abbreviated lanyard cards and in the HMO handbooks; education completed.

o Finalised the General Surgery Antibiotic Guides. Now in the process of getting them onto PROMPT and lanyard card versions. Educations sessions have been scheduled for August.

• Almost completed simplifying the restricted antibiotic indication lists in GuidanceMS to make it easier for prescribers to pick the correct indication and take less time to get an approval (estimated completion date is 31 July 2016).

• Started contributing The Northern Hospital antimicrobial usage data to the National Antimicrobial Utilisation

– 33 –


STA

TEM

EN

T O

F P

RIO

RIT

IES

To complete all annual emergency compliance and operational staff training requirements.

To complete the scheduled EMERGO training exercise and review and update all emergency response plans by October 2015.

To review and enhance the current suite of Critical Incident Management policies, plans and procedures.


Ensure that emergency response management plans are in place, regularly exercised and updated, including trigger activation and communication arrangements.

Surveillance Program (NAUSP). First report comparing our usage to national data to be presented at the July Standard 3 Clinical Improvement Committee meeting.

• Working with the education unit to develop a fact sheet on GuidanceMS for interns and HMOs.

Started preparing for Antibiotic Awareness Week (14-20 August) by booking display spaces at all campuses.

AchievedEmergency Management training is current at 75 per cent and improving toward the 95 per cent target.

AchievedThe review is complete and findings are now being implemented. A Cap 1 request for replacement of radios has been forwarded for approval, Level 3 guideline (staff reporting criminal acts) has been developed, and a business continuity plan is progressing.The Emergency Services Liaison Committee has been established (including Ambulance Victoria and Victoria Police reps).Code black and code purple responses updated.

Achieved


– 34 –


To fully implement Northern Health’s Cash Flow Forecasting and Cash Management Guidelines.

To implement a demand capacity forecasting management framework and tools that will enable Northern Health to achieve compliance with our bed plan, better match our rosters with activity and reduce variation in service delivery.

To reconfigure our workforce to improve patient care delivery.


Improve cash management processes to ensure thatfinancial obligations are met as they are due.

Identify opportunities for efficiency and better value service delivery.

AchievedNorthern Health developed and implemented a comprehensive suite of new policies and procedures for cash flow forecasting and cash management. This included the development of a five year Cash Strategy 2016-2021 to enable Northern Health to meet capital renewal and replacement needs, including provision for implementing an Electronic Medical Record.The Board approved this five year Cash Strategy which is now supporting sustainable asset renewal and innovation.

Project DiscontinuedMcKesson project discontinued due to non-support of business case. To be removed from SOP tasks.Northern Health is currently exploring another project to strengthen budget and demand forecasting (proposal submitted to Better Care Victoria Fund).2016-17 budget build has been developed based on known peaks and troughs of activity.

AchievedNurse pool now at 65 EFT.Locum usage has decreased over 60 per cent in the last seven months.

Nurse pool is predominantly being used currently to fill establishment deficits and personal leave.

Pilot project has commenced to reduce personal leave for the top five cost centres with positive results for three cost centres to date.

Established deficit project commenced in early July.

Financial Sustainability

– 35 –


STA

TEM

EN

T O

F P

RIO

RIT

IES

To deliver the 2015-16 Financial Sustainability Plan and the private and commercial revenue generation initiatives within this.

To continue the rollout of the Northern Health Partnerships Framework that involves formalising partnerships with metropolitan and neighbouring health services and improving partnerships with primary care providers

Northern Health will utilise the VicHealth Partnerships Analysis tool to support the achievement of this deliverable.

To fully imbed the Partnership Agreements developed in 2014-15 with the Royal Children’s Hospital and Austin Health.


Invest in revenue optimisation initiatives to ensure maximisation of revenue from both public and private sources.

Implement integrated care approaches across health and community support services to improve access and responses for disadvantaged Victorians.

Progress partnerships with other health services to ensure patients can access treatments as close to where they live when it is safe and effective to so, making the most efficient use of available resources across the system.

AchievedNorthern Health has achieved a budgeted operating surplus. The sustainability initiatives have been achieved. The operating surplus for the year was $159,000 against a budgeted operating surplus of $5,000.

AchievedNorthern Health continues to work in partnership through the Shared Vision for the North initiative, collaboration with the two PHNs and ongoing close collaboration with the regional and central offices of Department of Health and Human Services, North Western Mental Health Services and Kilmore and District Hospital.Northern Health continues to work with relevant agencies to address specific population needs (for example, Sexual and Reproductive Health, Mental health, etc.)

In progressThe Vic Health tool has been utalised to assess partnership approaches in the Shared Vision for the North collaborative project, and Northern Health is working to implement an annual process to assess partnerships utilising this tool.2016 analysis will be completed in the second quarter of the 2016-17 Financial Year and reported to the PC&PH Advisory Committee.

In progressRoyal Children’s Hospital collaboration being established for:• Royal Children’s Hospital

ward transfer to The Northern Hospital wards (bypassing ED). Aim to begin in August 2016.

• Royal Children’s Hospital General Paediatric Outpatient clinics will stop accepting primary care referrals from Northern catchment area due to long waiting times for non-urgent appointments. A letter endorsing The Northern

Access


– 36 –


To continue to develop and strengthen partnerships with community-based health service providers, particularly with The Kilmore and District Hospital where 10 GEM service beds will be delivered.

To implement and optimise the additional nine cubicles in the Emergency Department provided for following the Travis Review.

Northern Health recognises that the number of admissions in the Emergency Department leads to an increase in off-stretcher time for Ambulance Victoria.


Optimise system capacity by ensuring that allocated points of care are implemented as per the Travis Review recommendations.

Work collaboratively with Ambulance Victoria to achieve timely transfer of patients.

Hospital co-signed by heads of department from Royal Children’s Hospital and Northern Health will be sent to GPs by September 2016.

Austin Health partnership agreement for Paediatric surgery continues. The Northern Hospital now covers all elective paediatric and emergency surgery for the two hospitals.

Achieved Further opportunities for improvement in this partnership have been identified, including improving local knowledge of services available in Kilmore, enhancing interdisciplinary model of care, strengthening local risk management.Meeting to commence implementation of improvement initiatives to occur in August 2016.

Achieved

In progressThe redesign project continues. The diagnostic phase has identified areas for improvement and strategies are being developed to address three key problems.Opening of the Observation Unit will assist in reducing congestion in the Emergency Department by reducing the number of admitted patients waiting for a bed in the Emergency Department and thereby reduce ambulance off-load times. Also, a revision of the Short Stay Unit model of care will also lead to more efficient flow from the Emergency Department – again leading to a reduction in the congestion and therefore ambulance off-load times.Post benchmarking with other agencies, Northern Health will implement an Ambulance Victoria surge nurse to expedite

– 37 –


STA

TEM

EN

T O

F P

RIO

RIT

IES

Northern Health and Ambulance Victoria have formalised a partnership agreement that has been developed in accordance with the Northern Health Partnerships Framework.

As part of this agreement Northern Health will work with Ambulance Victoria to: (i) optimise SSU beds throughput with a focus on patient selection to enable two patients per bed per day; and (ii) implement an escalation process to address Ambulance Victoria off- stretcher times at 20 minutes on-site.

To further develop and refine the Emergency Department streaming model that seeks to better tailor the nature of care provided to Emergency Department patients.

To optimise integration with community palliative care providers through the NorthWest Metropolitan Palliative Care Consortium.


Reduce unplanned readmissions– with a focus on identifying high risk patients; delivering coordinated and integratedresponses; and reducing the use of avoidable acute services, where practical and safe to do so.

ambulance off-load – particularly in times of high-demand within the department.

AchievedNorthern Health and Ambulance Victoria meet regularly to discuss performance and opportunities to improve performance, particularly off-stretcher time.

In progressThe Short Stay Unit has improved its throughput since the last update. Throughput is now at 40-45 patients per day. However, regular achievement of the 80 per cent NEAT target is not consistent. Therefore, the next piece of work will be a review and amendment of the Short Stay Unit model of care and the Short Stay Unit referral, admission and flow processes and increase accountability monitoring re: adherence to process.(ii) The ED Escalation plan has been reviewed and redrafted following the recent audit. This will be forwarded to the Access team for review. The lack of an organisation wide escalation process for access issues has been identified as a gap. The Access team is developing a draft of an organisation-wide access escalation plan.

In progressThe Healthlinks project has commenced – with patient identification determined by DHHS. Initial patient recruitment commenced and extended care plan development commenced 1 July 2016.

In progressThe Victorian Palliative Care Clinical Network working group has met a number of times in the past eight months. Northern Health has a representative on this group. There is a 12 month timeframe to develop tools which will support patients and families to understand


– 38 –


To consider Hospital in the Home (HITH) and Health Independence Program (HIP) platforms for appropriate patients to ensure appropriate home- based and follow-up care is in place to minimise risk of re-admission.

To introduce standardised practices across disciplines regarding the receipt and processing of clinical referral information to support more accurate patient categorisation.


Ensure that policies, procedures and service delivery models are in place to manage and monitor colonoscopy referrals and ensure timely access for patients with an urgent clinical need.

what services are available and how to access them. This work will continue in 2016-17 as we wait the development of state wide resources.

Achieved

Forty beds have commenced in HITH. Further growth is being explored as demand dictates.

HITH have relocated to support and advanced model of care.

GEM@Home flexes up two beds as required to assist with demand.

AchievedConversion to WIES from MBS at Broadmeadows Health Service has been achieved.Theatre Bookings have been centralised at The Northern Hospital to standardise referral processes. The new service has been renamed the Elective Surgery Centre.The Head of Endoscopy has developed a new template for endoscopy referral that has gone to the Endoscopists for review and then implementation.

– 39 –

PERFORMANCE PRIORITIES

STA

TEM

EN

T O

F P

RIO

RIT

IES

PE

RFO

RM

AN

CE

P

RIO

RIT

IES

Performance PrioritiesSAFETY AND QUALITY PERFORMANCE

Key Performance Indicator Target 2015-16 actuals

Compliance with NSQHS Standards accreditation Full compliance Achieved

Compliance with the Commonwealth’s Aged Care Accreditation Standards Full compliance Full compliance

Cleaning Standards - Overall compliance with standards Full compliance Full compliance

Cleaning Standards - Very high risk (Category A) 90 points Achieved

Cleaning Standards - High risk (Category B) 85 points Achieved

Cleaning Standards - Moderate risk (Category C) 85 points Achieved

Compliance with the Hand Hygiene Australia program 80% 84.3%

Percentage of healthcare workers immunised for influenza 75% 75.8%

PATIENT EXPERIENCE AND OUTCOMES PERFORMANCE


Victorian Healthcare Experience Survey - data submission Full compliance Achieved

Victorian Healthcare Experience Survey – patient experience Quarter 1 95% positive 89.9% experience



Number of patients with surgical site infection No outliers Achieved

ICU central line-associated blood stream infection No outliers Achieved

SAB rate per occupied bed days1 < 2/10,000 < 0.4/10,000

Maternity – Percentage of women with prearranged postnatal home care Full compliance Full compliance

GOVERNANCE, LEADERSHIP AND CULTURE PERFORMANCE


People Matter Survey - percentage of staff with a positive response to safety culture questions 80% 83%


– 40 –

Performance Priorities (cont’d)

ACCESS PERFORMANCE


Emergency care

Percentage of ambulance patients transferred within 40 minutes 90% 78%

Percentage of Triage Category 1 emergency patients seen immediately 100% 100%

Percentage of Triage Category 1 to 5 emergency patients seen within clinically recommended times 80% 76%

Percentage of emergency patients with a length of stay less than four hours 81% 59%

Number of patients with a length of stay in the emergency department greater than 24 hours 0 0

Elective surgery

Percentage of elective patients removed within clinically recommended timeframes 94% 74%

Percentage of Urgency Category 1 elective patients removed within 30 days 100% 100%

10% longest waiting Category 2 and 3 removals from the elective surgery waiting list 100% 100%

Number of patients on the elective surgery waiting list3 2,990 2,562

Number of hospital initiated postponements per 100 scheduled admissions ≤8 /100 5.4

Number of patients admitted from the elective surgery waiting list – annual total 8,060 7,856

Critical care

Adult ICU number of days below the agreed minimum operating capacity4 0 24

1 SAB is staphylococcus aureus bacteraemia2 WIES is a Weighted Inlier Equivalent Separation.3 The target shown is the number of patients on the elective surgery waiting list as at 30 June 2016.4 The agreed minimum operating capacity is 7 ICU equivalents.

FINANCIAL SUSTAINABILITY PERFORMANCE


Finance

Operating result 0.00 0.2

Trade creditors < 60 days 54

Patient fee debtors < 60 days 52

Public & private WIES2 performance to target 100% 100.3%

Asset management

Asset management plan Full compliance Achieved

Adjusted current asset ratio 0.7 0.4

Days of available cash 14 days 5

– 41 –

ACTIVITY AND FUNDING

PE

RFO

RM

AN

CE

P

RIO

RIT

IES

AC

TIV

ITY

AN

D

FUN

DIN

G

Funding type 2015-16 Activity achievement

Acute Admitted

WIES Public 44,370

WIES Private 4,986

WIES (Public and Private) 49,356

WIES DVA 330

WIES TAC 248

WIES TOTAL 49,934

Acute Non-Admitted

Emergency services 85,015

Specialist clinics - DVA 56

Specialist clinics – Non DVA 201,621

Renal Dialysis - Home ABF 317

Subacute and Non-Acute Admitted

Rehab Public 20,334

Rehab Private 3,126

Rehab DVA 381

GEM Public 28,306

GEM Private 5,484

GEM DVA 826

Palliative Care Public 7,243

Palliative Care Private 1,980

Palliative Care DVA 244

Transition Care - Bed days 8,519

Transition Care - Home day 15,012

Subacute Non-Admitted N/A

Health Independence Program 93,662

Aged Care

Aged Care Assessment Service 3,589

Residential Aged Care 10,879

HACC 49,989

Activity and Funding


– 42 –

Activity and Funding (cont’d)

Attestation on Data Integrity

I, Siva Sivarajah, Northern Health Chief Executive Officer, certify that Northern Health has put in place appropriate internal controls and processes to ensure that reported data reasonably reflects actual performance. Northern Health has critically reviewed these controls and processes during the year.

Siva SivarajahChief Executive OfficerNorthern Health25/08/2016

– 43 –

CORPORATE INFORMATION

AC

TIV

ITY

AN

D

FUN

DIN

GC

OR

PO

RA

TE

INFO

RM

ATI

ON

GENERAL INFORMATIONNorthern Health was established in July 2000 under the Health Services (Governance and Accountability) Act 2004 and under the auspices of the Minister for Health.

It provides a wide range of health care services to a primary and secondary catchment of over 555,000 people living in Melbourne’s middle to outer northern suburbs and the semi-rural regions beyond the urban fringe.

Northern Health comprises:• Broadmeadows Health Service• Bundoora Extended Care

Centre• Craigieburn Health Service• Panch Health Service• The Northern Hospital.

CONSULTANCIES

Corporate Information

Purpose of TotalConsultant consultancy Period project fee Consulting Commitments

Consultancy fees greater than $10,000 in individual amount.

In 2015-16 Northern Health engaged five consultancies with an individual amount greater than $10,000. This is detailed below.

MIDNIGHTSKY Finalisation of communications July 2015 $50,000 $50,000 - strategy.

ERNST and Financial analysis August 2015 YOUNG and financial to January 2016 $119,564 $119,564 - recovery planning.

KPMG Finalisation of ICT July 2015 $34,543 $34,543 - funding business case to DHHS.

ENTERPRISE Assessment of April 2016 to KNOWLEDGE corporate July 2016 $21,600 $21,600 - record keeping against Public Record Office Victorian Standards.

LA TROBE Evaluation of July 2015 to $25,000 $25,000 - UNIVERSITY Shared Vision For December 2015 the North strategy.

$250,707

Consultancies less than $10,000 in individual amount

In 2015-16 Northern Health engaged six consultancies where the total fees payable to the consultants

was less than $10,000. The total value of these consultancies was $20,270 (excluding GST).


– 44 –

Corporate Information (cont’d)

OCCUPATIONAL HEALTH AND SAFETY CLAIMS

• 2015-16: 34

• 2014-15: 30

• 2013-14: 31

• 2012-13: 21

• 2011-12: 25

• 2010-11: 26

• 2009-10: 16

These are standard Workcover claims, which are defined as those claims that are over the statutory employer excess and reported to the Victorian WorkCover Authority during the financial year.

OCCUPATIONAL VIOLENCE STATISTICS• Workcover accepted

claims with an occupational violence cause per 100 FTE 0.012

• Number of accepted Workcover claims with lost time injury with an occupational violence cause per 1,000,000 hours worked. 0.72

• Number of occupational violence incidents reported 441

• Number of occupational violence incidents reported per 100 FTE 1.69

• Percentage of occupational violence incidents resulting in a staff injury, illness or condition 14%

Definitions

For the purposes of the above statistics the following definitions apply.

• Occupational violence - any incident where an employee is abused, threatened or assaulted in circumstances arising out of, or in the course of their employment.

• Incident - occupational health

and safety incidents reported in the health service incident reporting system. Code Grey reporting is not included.

• Accepted Workcover claims – Accepted Workcover claims that were lodged in 2015-16.

• Lost time – is defined as greater than one day.

BUILDING ACT 1993

During the financial year, it has been Northern Health’s practice to obtain building permits for new projects, and Certificates of Occupancy or Certificates of Final Inspection for all completed projects.

Registered Building Practitioners have been involved with all new building work projects and were supervised by Northern Health’s Director of Capital Planning and Development.

Completed and operational as at 30 June 2016:

• Stage 1 - Northern Health Acute Inpatient Unit Tower Block project

• NCHER Level 3 East Centre of Learning fit-out

Current projects in design phase:

• Broadmeadows Health Service Surgery Centre Redevelopment project

NATIONAL COMPETITION POLICYServices that are regularly market tested in accordance with the State Government’s Competitive Neutrality Guidelines include:• Patient transport• Waste management• Car parking• Fleet management• Supply• Medical imaging/radiology• Pathology• Food service

• Biomedical engineering• Cleaning services• Laundry• Security• Retail services• Financial services• Information and

communications technology• Clinical services• Building and engineering

services• Community services• Electricity• Gas supply• Telecommunications• Pharmaceutical products.

Market testing of services will continue as scheduled, and according to the contract cycle, into the 2016-17 financial year.

FREEDOM OF INFORMATION

937 Freedom of Information applications were received by Northern Health during the 2015-16 financial year.

All applications were processed according to the provisions of the Freedom of Information Act 1982, which provides a legally enforceable right of access to information held by government agencies.

All Northern Health campuses provide a report on these requests to the Freedom of Information Commissioner.

The applications were processed as follows:

• 937 applications received

• 813 granted in full

• 56 granted in part

• 7 denied

• 8 withdrawn

• 24 not finalised

• 29 no document (patient did not attend organisation for requested dates).

– 45 –

CORPORATE INFORMATION

CO

RP

OR

ATE

IN

FOR

MA

TIO

N

OTHER INFORMATIONAdditional Information available on request

Details in respect of the items listed below have been retained by Northern Health and are available to the relevant Ministers, Members of Parliament and the public on request (subject to the freedom of information requirements, if applicable):

(a) Declarations of pecuniary interests have been duly completed by all relevant officers

(b) Details of shares held by senior officers as nominee or held beneficially;

(c) Details of publications produced by the entity about itself, and how these can be obtained

(d) Details of changes in prices, fees, charges, rates and levies charged by the Health Service;

(e) Details of any major external reviews carried out on the Health Service;

(f) Details of major research and development activities undertaken by the Health Service that are not otherwise covered either in the Report of Operations or in a document that contains the financial statements and Report of Operations;

(g) Details of overseas visits undertaken including a summary of the objectives and outcomes of each visit;

(h) Details of major promotional, public relations and marketing activities undertaken by the Health Service to develop community awareness of the Health Service and its services;

(i) Details of assessments and measures undertaken to improve the occupational health and safety of employees;

(j) General statement on industrial relations within the Health Service and details of time lost through industrial accidents and disputes, which is not otherwise detailed in the Report of Operations;

(k) A list of major committees sponsored by the Health Service, the purposes of each committee and the extent to which those purposes have been achieved;

(l) Details of all consultancies and contractors including consultants/contractors engaged, services provided, and expenditure committed for each engagement.

VICTORIAN INDUSTRY PARTICIPATION POLICY

Northern Health complies with the intent of the Victorian Industry Participation Policy (VIPP) Act (Vic) 2003 which is to encourage, where possible, local industry participation in the supply of goods and services to government agencies.

MERIT AND EQUITY PRINCIPLESMerit and equity principles are encompassed in all employment and diversity management activities throughout Northern Health.

CARERS AND CARE RELATIONSHIPS

Northern Health is dedicated to providing the highest quality

of care in the safest possible environment for every patient.

Northern Health complies with the intent of the Carers Recognition Act 2012 which seeks to: recognise, promote and value the role of people in care relationships; recognise the different needs of persons in care relationships; and support and recognise that care relationships bring benefits to the persons in the care relationship and to the community.

Our Quality of Care report, which will be released late this year, provides details on our services and the changes we are making to improve care and patient outcomes.

PROTECTED DISCLOSURE ACT 2012Under the Protected Disclosure Act 2012, complaints about certain serious misconduct or corruption involving public health services in Victoria should be made directly to the Independent Broad-based Anti-corruption Commission (IBAC) in order to remain protected under the Act. Northern Health encourages individuals to make any disclosures which are protected disclosures within the meaning of the Act with IBAC.

CAR PARKING FEESNorthern Health complies with the DHHS hospital circular on car parking fees effective 1 February 2016 and details of car parking fees and concession benefits can be viewed at www.nh.org.au

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) EXPENDITURE The total expenditure during 2015-16 is $7.73m (excluding GST) with the details shown below.

Business As Usual (BAU) Non-BAU ICT Operational Capital ICT Expenditure ($000)* Expenditure Expenditure Expenditure (excluding GST) ($000) ($000) ($000)

$7,440 288 284 4


– 46 –

FINANCIAL RESULTSThe financial results for Northern Health over the past five financial years are shown below.

Report of Operations Disclosure 2016 2015* 2014* 2013* 2012 000’s 000’s 000’s 000’s 000’s

Total Revenue 457,196 397,861 393,122 363,790 339,355

Total Expenses 452,870 416,471 385,295 356,132 350,855

Net Result (Including Capital and Specific Items) 4,326 (18,610) 7,827 7,658 (11,500)

Accumulated Deficits (53,093) (57,419) (41,511) (48,909) (51,268)

Total Assets 433,050 417,273 430,567 317,437 310,404

Total Liabilities 119,831 108,379 103,062 88,709 89,335

Net Assets 313,219 308,894 327,505 228,728 221,069

Total Equity 313,219 308,894 327,505 228,728 221,069

* The comparative figures for 2013-2015 have been restated to take account of a change in accounting treatment adopted in 2016 for two service agreements extending into February 2013 and February 2016 respectively.

Corporate Information (cont’d)

WORKFORCE INFORMATIONThe full time equivalent (FTE) head count for Northern Health as at 30 June 2015 and 30 June 2016 is provided below. Labour category June June June Current Month FTE* YTD FTE* Headcount

2015 2016 2015 2016 2015 2016

Grand Total 2,595 2,699 2,525 2,609 3,521 3,715

Nursing Services 1,219 1,283 1,175 1,219 1,701 1,811

Administration and Clerical 447 425 416 425 588 571

Medical Support Services 159 163 163 161 195 204

Hotel and Allied Services 137 132 138 132 178 176

Medical Officers 55 61 54 57 62 69

Hospital Medical Officers 241 285 244 268 267 303

Sessional Medical Officers 66 73 62 68 189 215

Ancillary Support Services 270 278 273 278 341 366

– 47 –

SECTION HEADING

CO

RP

OR

ATE

IN

FOM

ATI

ON


– 48 –

Disclosure InformationThe annual report of Northern Health is prepared in accordance with all relevant Victorian legislation.

This index has been prepared to facilitate identification of the Department’s compliance with statutory disclosure requirements.

MINISTERIAL DIRECTIONS

REPORT OF OPERATIONS

Legislation Requirement Page Ref

CHARTER AND PURPOSEFRD 22G Manner of establishment and the relevant Ministers A43

FRD 22G Purpose, functions, powers and duties A9-12

FRD 22G Initiatives and key achievements A21-34

FRD 22G Nature and range of services provided A16-20

MANAGEMENT AND STRUCTURE

FRD 22G Organisational structure A15

FINANCIAL AND OTHER INFORMATION

FRD 10A Disclosure index A48-49

FRD 11A Disclosure of ex gratia expenses F59

FRD 21B Responsible person and executive officer disclosures A5and F1

FRD 22G Application and operation of Protected Disclosure 2012 A45

FRD 22G Application and operation of Carers Recognition Act 2012 A45

FRD 22G Application and operation of Freedom of Information Act 1982 A44

FRD 22G Compliance with building and maintenance provisions of Building Act 1993 A44

FRD 22G Details of consultancies over $10,000 A43

FRD 22G Details of consultancies under $10,000 A43

FRD 22G Employment and conduct principles A21-22 and A27

FRD 22G Major changes or factors affecting performance A5

FRD 22G Occupational health and safety A44

FRD 22G Operational and budgetary objectives and performance against objectives A29-38

FRD 24C Reporting of office-based environmental impacts A21

FRD 22G Significant changes in financial position during the year A46

FRD 22G Statement on National Competition Policy A44

FRD 22G Subsequent events F59

FRD 22G Summary of the financial results for the year A40 and A46

FRD 22G Workforce Data Disclosures including a statement on the application of A46 employment and conduct principles

FRD 25B Victorian Industry Participation Policy disclosures A45

FRD 29A Workforce Data disclosures A27 and A46

– 49 –

DISCLOSURE INFORMATION

DIS

CLO

SU

RE

INFO

RM

ATI

ON


SD 4.2(g) Specific information requirements A16

SD 4.2(j) Sign-off requirements A5

SD 3.4.13 Attestation on data integrity A42

SD 4.5.5 Ministerial Standing Direction 4.5.5 compliance attestation A28


FINANCIAL STATEMENTS Financial statements required under Part 7 of the FMASD 4.2(a) Statement of changes in equity F4

SD 4.2(b) Comprehensive operating statement F2

SD 4.2(b) Balance sheet F3

SD 4.2(b) Cash flow statement F5

OTHER REQUIREMENTS UNDER STANDING DIRECTIONS 4.2

SD 4.2(a) Compliance with Australian accounting standards and F6 other authoritative pronouncements

SD 4.2(c) Accountable officer’s declaration F1

SD 4.2(c) Compliance with Ministerial Directions F6

SD 4.2(d) Rounding of amounts F9

LEGISLATION

Freedom of Information Act 1982 A44

Protected Disclosure Act 2012 A45

Carers Recognition Act 2012 A45

Victorian Industry Participation Policy Act 2003 A45

Building Act 1993 A44

Financial Management Act 1994 A5

Nor

ther

n H

ealt

h

Fin

anci

al S

tate

men

tsan

d A

ccom

pan

yin

g N

otes

For

the

Yea

r En

ded

30

Ju

ne

20

16

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Page

Boa

rd M

embe

r's,

Acc

ount

able

Off

icer

's a

nd C

hief

Fin

ance

and

Acc

ount

ing

Off

icer

's d

ecla

ration

1Com

preh

ensi

ve O

pera

ting

Sta

tem

ent

2Bal

ance

She

et3

Sta

tem

ent

of C

hang

es in

Equ

ity

4Cas

h Fl

ow S

tate

men

t 5

Not

e 1:

Sum

mar

y of

Sig

nific

ant

Acc

ount

ing

Polic

ies

6N

ote

2: A

naly

sis

of C

onso

lidat

ed R

even

ue b

y Sou

rce

23N

ote

2a:

Net

Gai

n/(L

oss)

on

Dis

posa

l of

Non

-fin

anci

al A

sset

s25

Not

e 2b

: Ass

ets

rece

ived

fre

e of

cha

rge

or f

or n

omin

al c

onsi

dera

tion

25N

ote

3: A

naly

sis

of C

onso

lidat

ed E

xpen

ses

by S

ourc

e26

Not

e 3a

: Ana

lysi

s of

Exp

ense

s an

d Rev

enue

by

Inte

rnal

ly M

anag

ed a

nd R

estr

icte

d Spe

cific

Pur

pose

Fun

ds f

or S

ervi

ces

Sup

port

ed b

y H

ospi

tal a

nd C

omm

unity

Initia

tive

s28

Not

e 3b

: Spe

cific

Exp

ense

s28

Not

e 4:

Dep

reci

atio

n an

d Am

ortisa

tion

29N

ote

5: F

inan

ce C

osts

29

Not

e 6:

Cas

h an

d Cas

h Eq

uiva

lent

s30

Not

e 7:

Rec

eiva

bles

31N

ote

8: I

nven

tories

32N

ote

9: P

repa

ymen

ts a

nd o

ther

Ass

ets

32N

ote

10:

Prop

erty

, Pl

ant

and

Equi

pmen

t33

Not

e 11

: In

tang

ible

Ass

ets

39N

ote

12:

Paya

bles

40N

ote

13:

Bor

row

ings

41N

ote

14:

Prov

isio

ns42

Not

e 15

: Sup

eran

nuat

ion

44N

ote

16:

Oth

er L

iabi

litie

s44

Not

e 17

: Eq

uity

45N

ote

18:

Rec

onci

liation

of N

et R

esul

t fo

r th

e Ye

ar t

o N

et C

ash

Inflo

w/(

Out

flow

) fr

om O

pera

ting

Act

ivitie

s46

Not

e 19

: Fi

nanc

ial I

nstr

umen

ts47

Not

e 20

: Com

mitm

ents

for

Exp

endi

ture

54N

ote

21:

Con

ting

ent

Ass

ets

and

Con

ting

ent

Liab

ilities

56N

ote

22:

Ope

rating

Seg

men

ts56

Not

e 23

a: R

espo

nsib

le P

erso

ns D

iscl

osur

es57

Not

e 23

b: E

xecu

tive

Off

icer

Dis

clos

ures

58N

ote

24:

Eve

nts

Occ

urring

aft

er t

he B

alan

ce S

heet

Dat

e59

Not

e 25

: R

emun

erat

ion

of A

uditor

s59

Not

e 26

: E

x-gr

atia

Exp

ense

s59

Not

e 27

: C

ontr

olle

d En

tities

59N

ote

28:

Eco

nom

ic D

epen

denc

y59

Not

e 29

: Alter

native

Pre

sent

atio

n of

Com

preh

ensi

ve O

pera

ting

Sta

tem

ent

60In

depe

nden

t Aud

itor

's R

epor

t61

Tab

le O

f C

onte

nts

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

of

62

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

____

__

Ms

Jen

nif

er W

illia

ms

Mr

Siv

a S

ivar

a jah

Mr

Bas

il Ir

elan

dBoa

rd C

hair

Chi

ef E

xecu

tive

Offic

erChi

ef F

inan

cial

Offic

er

Nor

ther

n H

ealth

Nor

ther

n H

ealth

Nor

ther

n H

ealth

17th

Aug

ust

2016

17 A

ugus

t 20

1617

Aug

ust

2016

Boa

rd M

emb

er's

, A

ccou

nta

ble

Off

icer

's a

nd

Ch

ief

Fin

ance

an

d A

ccou

nti

ng

Off

icer

's d

ecla

rati

on

We

auth

oris

e th

e at

tach

ed fin

anci

al r

epor

t fo

r is

sue

on t

his

day.

We

cert

ify t

hat

the

atta

ched

fin

anci

al r

epor

t fo

r N

orth

ern

Hea

lth,

incl

udin

g co

ntro

lled

entit

ies,

has

bee

n pr

epar

ed in

acc

orda

nce

with

Sta

ndin

g D

irec

tion

4.2

of t

he F

inan

cial

Man

agem

ent

Act

199

4,

appl

icab

le F

inan

cial

Rep

orting

Direc

tion

s,

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds,

Aus

tral

ian

Acc

ount

ing

Inte

rpre

tatio

ns a

nd o

ther

man

dato

ry p

rofe

ssio

nal r

epor

ting

requ

irem

ents

.

We

furt

her

stat

e th

at,

in o

ur o

pini

on,

the

info

rmat

ion

set

out

for

the

Nor

ther

n H

ealth

Com

preh

ensi

ve O

pera

ting

Sta

tem

ent,

the

Bal

ance

She

et,

Sta

tem

ent

of C

hang

es in

Equ

ity,

Cas

h Fl

ow S

tate

men

t an

d no

tes

form

ing

part

of th

e fin

anci

al r

epor

t, p

rese

nts

fairly

the

fin

anci

al t

rans

actio

ns d

urin

g th

e ye

ar e

nded

30

June

201

6 an

d fin

anci

al p

ositi

on o

f N

orth

ern

Hea

lth a

t 30

Jun

e 20

16.

At

the

time

of s

igni

ng w

e ar

e no

t aw

are

of a

ny c

ircu

mst

ance

whi

ch w

ould

ren

der

any

part

icul

ars

incl

uded

in t

he fin

anci

al r

epor

t to

be

mis

lead

ing

or in

accu

rate

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

1 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

of

62

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Not

eP

aren

t En

tity

Par

ent

Enti

tyC

onso

l'dC

onso

l'd2

01

62

01

52

01

62

01

5$

'00

0$

'00

0$

'00

0$

'00

0

Rev

enue

fro

m O

pera

ting

Act

iviti

es2

421,

210

37

7,77

0

42

1,18

9

37

7,66

9

Rev

enue

fro

m N

on-O

pera

ting

Act

iviti

es2

7,14

5

6,

239

8,05

4

6,98

7

Empl

oyee

Exp

ense

s3

(297

,876

)

(2

72,7

52)

(298

,089

)

(272

,753

)

Non

Sal

ary

Labo

ur C

osts

3(9

,662

)

(1

0,63

3)

(9

,662

)

(10,

633)

Sup

plie

s an

d Con

sum

able

s3

(78,

206)

(6

7,00

5)

(7

8,20

6)

(6

7,00

7)

O

ther

Exp

ense

s3

(42,

455)

(4

2,50

3)

(4

2,75

0)

(4

2,95

0)

N

et R

esu

lt B

efor

e C

a pit

al a

nd

Sp

ecif

ic I

tem

s1

56

(8,8

84

)5

36

(8,6

87

)

Ca p

ital P

urpo

se I

ncom

e2

28,2

39

16

,413

27,9

40

13,1

48

Dep

reci

atio

n an

d Am

ortis

atio

n4

(22,

925)

(2

2,03

2)

(2

2,92

5)

(2

2,03

2)

Fi

nanc

e Cos

ts5

(27)

(17)

(27)

(17)

Cap

ital P

urpo

se E

xpen

ditu

re3

(311

)

(1,0

79)

(312

)

(1

,079

)

Spe

cific

Exp

ense

s 3b

(803

)

-

(803

)

-

Net

Res

ult

aft

er C

apit

al a

nd

Sp

ecif

ic it

ems

4,3

29

(15

,59

9)

4,4

09

(18

,66

7)

Net

Gai

n/(L

oss)

on

Non

-fin

anci

al A

sset

s2a

(84)

55

(8

4)

55

To

tal O

ther

Eco

nom

ic F

low

s In

clu

ded

in N

et R

esu

lt(8

4)

55

(84

)5

5

NET

RES

ULT

FO

R T

HE

YEA

R4

,24

5(1

5,5

44

)4

,32

5(1

8,6

11

)

CO

MP

REH

ENS

IVE

RES

ULT

4,2

45

(15

,54

4)

4,3

25

(18

,61

1)

This

Sta

tem

ent

shou

ld b

e re

ad in

con

junc

tion

with

the

acco

mpa

nyin

g no

tes.

Nor

ther

n H

ealt

hC

omp

reh

ensi

ve O

per

atin

g S

tate

men

tFo

r th

e Y

ear

End

ed 3

0 J

un

e 2

01

6

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

of

62

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Not

eP

aren

t En

tity

Par

ent

Enti

tyC

onso

l'dC

onso

l'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

Cu

rren

t A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s6

18,9

88

7,

443

19,6

60

8,06

1

Rec

eiva

bles

79,

473

8,84

7

9,47

3

8,85

0

Inve

ntor

ies

82,

373

1,95

0

2,37

3

1,95

0

Prep

aym

ents

and

Oth

er A

sset

s9

1,46

5

87

2

1,46

5

872

Tota

l Cu

rren

t A

sset

s3

2,2

99

19

,11

23

2,9

71

19

,73

3

Non

-Cu

rren

t A

sset

sRec

eiva

bles

77,

417

5,00

8

7,41

7

5,00

8

Prop

erty

, Pl

ant

and

Equi

pmen

t10

392,

286

39

1,92

7

39

2,28

6

39

1,92

7

In

tan g

ible

Ass

ets

1137

6

60

5

376

605

Tota

l Non

-Cu

rren

t A

sset

s4

00

,07

93

97

,54

04

00

,07

93

97

,54

0

TOTA

L A

SS

ETS

43

2,3

78

41

6,6

52

43

3,0

50

41

7,2

73

Cu

rren

t Li

abili

ties

Paya

bles

1225

,643

26,4

39

25,7

71

26,5

95

Bor

row

ings

1328

1

283

281

283

Prov

isio

ns14

66,9

32

55

,282

66,9

32

55,2

82

Oth

er C

urre

nt L

iabi

litie

s16

1,74

8

93

7

1,74

8

937

Tota

l Cu

rren

t Li

abili

ties

94

,60

48

2,9

41

94

,73

28

3,0

97

Non

-Cu

rren

t Li

abili

ties

Prov

isio

ns14

10,3

68

9,

358

10,3

68

9,35

8

Bor

row

ings

1318

1

487

181

487

Oth

er N

on-C

urre

nt L

iabi

litie

s16

14,5

52

15

,438

14,5

52

15,4

38

Tota

l Non

-Cu

rren

t Li

abili

ties

25

,10

12

5,2

83

25

,10

12

5,2

83

TOTA

L LI

AB

ILIT

IES

11

9,7

05

10

8,2

24

11

9,8

33

10

8,3

80

NET

AS

SET

S3

12

,67

33

08

,42

83

13

,21

73

08

,89

3

EQ

UIT

YPr

oper

ty,

Plan

t an

d Eq

uipm

ent

Rev

alua

tion

Sur

plus

17a

200,

146

20

0,14

6

20

0,14

6

20

0,14

6

Res

tric

ted

Spe

cific

Pur

pose

Sur

plus

17a

243

329

4,94

1

4,53

2

Ca p

ital P

roje

cts

Res

erve

Sur

plus

17a

-

-

-

-

Con

trib

uted

Ca p

ital

17b

161,

634

16

1,63

4

16

1,63

4

16

1,63

4

Acc

umul

ated

Def

icits

17c

(49,

350)

(5

3,68

2)

(5

3,50

4)

(5

7,42

0)

TO

TAL

EQU

ITY

31

2,6

73

30

8,4

27

31

3,2

17

30

8,8

93

Com

mitm

ents

20

Con

tinge

nt A

sset

s an

d Con

tinge

nt L

iabi

litie

s21

This

Sta

tem

ent

shou

ld b

e re

ad in

con

junc

tion

with

the

acco

mpa

nyin

g no

tes.

0

1

(0)

0

Bal

ance

Sh

eet

As

at 3

0 J

un

e 2

01

6

Nor

ther

n H

ealt

h

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

3 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

of

62

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

solid

ated

Not

eP

rop

erty

Pla

nt

and

Eq

uip

men

t R

eval

uat

ion

Su

r plu

s

Res

tric

ted

Sp

ecif

ic P

urp

ose

Su

rplu

s

Cap

ital

Pro

ject

s R

eser

ve S

urp

lus

Con

trib

uti

ons

by

Ow

ner

sA

ccu

mu

late

dS

urp

lus/

(Def

icit

s)

Tota

l

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Res

tate

d B

alan

ce a

t 1

Ju

ly 2

01

417

200,

146

3,93

5

3,

300

161,

634

(41,

512)

32

7,5

03

N

et r

esul

t fo

r th

e ye

ar r

esta

ted

17c

-

-

-

-

(1

8,61

1)

(18

,61

1)

Oth

er c

ompr

ehen

sive

inco

me

for

the

year

17a

-

-

-

-

-

-

Tran

sfer

s to

acc

umul

ated

sur

plus

/ (d

efic

it)17

a,c

597

(3

,300

)

2,70

3

-

Res

tate

d B

alan

ce a

t 1

Ju

ly 2

01

52

00

,14

6

4,5

32

-

16

1,6

34

(5

7,4

20

)

30

8,8

93

N

et r

esul

t fo

r th

e ye

ar17

c-

-

-

-

4,

325

4,3

25

Oth

er c

ompr

ehen

sive

inco

me

for

the

year

17a

-

-

-

-

-

-

Tran

sfer

s to

acc

umul

ated

sur

plus

/ (d

efic

it)17

a,c

-

40

9

-

-

(4

09)

--

40

9-

-3

,91

64

,32

5B

alan

ce a

t 3

0 J

un

e 2

01

62

00

,14

64

,94

1-

16

1,6

34

(53

,50

4)

31

3,2

17

Par

ent

Not

eP

rop

erty

Pla

nt

and

Eq

uip

men

t R

eval

uat

ion

Su

r plu

s

Res

tric

ted

Sp

ecif

ic P

urp

ose

Su

rplu

s

Cap

ital

Pro

ject

s R

eser

ve S

urp

lus

Con

trib

uti

ons

by

Ow

ner

sA

ccu

mu

late

dS

urp

lus/

(Def

icit

s)

Tota

l

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Res

tate

d B

alan

ce a

t 1

Ju

l y 2

01

417

200,

146

250

3,

300

161,

634

(41,

359)

32

3,9

71

Net

res

ult

for

the

year

res

tate

d17

c-

-

-

-

(1

5,54

4)

(15

,54

4)

Oth

er c

ompr

ehen

sive

inco

me

for

the

year

17a

-

-

-

-

-

-

Tran

sfer

s to

acc

umul

ated

sur

plus

/ (d

efic

it)17

a,c

-

79

(3,3

00)

-

3,

221

-

Res

tate

d B

alan

ce 3

0 J

un

e 2

01

52

00

,14

6

32

9

-

1

61

,63

4

(53

,68

2)

3

08

,42

7

Net

res

ult

for

the

year

17c

-

-

-

-

4,

246

4,2

46

Oth

er c

ompr

ehen

sive

inco

me

for

the

year

17a

-

-

-

-

-

-

Tran

sfer

s to

acc

umul

ated

sur

plus

/ (d

efic

it)17

a,c

-

(8

6)

-

-

86

-

-(8

6)

--

4,3

32

4,2

46

Bal

ance

at

30

Ju

ne

20

16

20

0,1

46

2

43

-

16

1,6

34

(4

9,3

50

)

31

2,6

73

This

Sta

tem

ent

shou

ld b

e re

ad in

con

junc

tion

with

the

acco

mpa

nyin

g no

tes.

Sta

tem

ent

of C

han

ges

in E

qu

ity

For

the

Yea

r En

ded

30

Ju

ne

20

16

Nor

ther

n H

ealt

h

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

4 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

of

62

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Not

eP

aren

t En

tity

Par

ent

Enti

tyC

onso

l'dC

onso

l'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

CA

SH

FLO

WS

FR

OM

OP

ERA

TIN

G A

CTI

VIT

IES

Ope

ratin

g G

rant

s fr

om G

over

nmen

t38

2,42

7

348,

514

38

2,42

7

34

8,51

1

Cap

ital G

rant

s fr

om G

over

nmen

t29

,379

11,5

40

29,3

79

11,5

40

Patie

nt a

nd R

esid

ent

Fees

Rec

eive

d16

,792

15,1

72

16,7

92

15,1

72

Priv

ate

Prac

tice

Fees

Rec

eive

d3,

597

2,43

7

3,59

7

2,43

7

Don

atio

ns a

nd B

eque

sts

Rec

eive

d-

495

744

781

GST

Rec

eive

d fr

om/(

paid

to)

ATO

9,54

8

8,

657

9,55

1

8,60

6

Rec

oupm

ent

from

priva

te p

ract

ice

for

use

of h

ospi

tal f

acili

ties

2,37

5

2,

363

2,37

7

2,36

3

Inte

rest

Rec

eive

d90

2

867

918

933

Oth

er c

a pita

l rec

eipt

s-

3,

000

-

-

Oth

er R

ecei

pts

15,6

49

15

,664

15,8

37

16,1

00

Tota

l Rec

eip

ts4

60

,66

94

08

,70

94

61

,62

24

06

,44

3

Em

ploy

ee E

xpen

ses

Paid

(282

,937

)

(2

68,8

98)

(283

,150

)

(2

68,8

97)

Non

Sal

ary

Labo

ur C

osts

(9,6

62)

(10,

483)

(9

,662

)

(10,

483)

Pa

ymen

ts f

or S

uppl

ies

and

Con

sum

able

s(8

2,38

4)

(74,

591)

(8

2,42

7)

(7

4,58

8)

Fi

nanc

e Cos

ts(2

7)

(1

7)

(27)

(17)

Oth

er P

aym

ents

(50,

681)

(4

5,97

1)

(5

1,32

4)

(4

6,37

3)

To

tal P

aym

ents

(42

5,6

91

)(3

99

,96

0)

(42

6,5

90

)(4

00

,35

8)

NET

CA

SH

IN

FLO

W F

RO

M O

PER

ATI

NG

AC

TIV

ITIE

S18

34

,97

88

,74

93

5,0

32

6,0

85

CA

SH

FLO

WS

FR

OM

IN

VES

TIN

G A

CTI

VIT

IES

Paym

ents

for

Non

-Fin

anci

al A

sset

s(2

3,13

8)

(20,

691)

(2

3,13

8)

(2

0,69

1)

Pr

ocee

ds f

rom

sal

e of

Non

-Fin

anci

al A

sset

s14

56

14

56

N

ET C

AS

H O

UTF

LOW

FR

OM

IN

VES

TIN

G A

CTI

VIT

IES

(23

,12

4)

(20

,63

5)

(23

,12

4)

(20

,63

5)

CA

SH

FLO

WS

FR

OM

FIN

AN

CIN

G A

CTI

VIT

IES

Rep

aym

ent

of B

orro

win

gs(3

10)

(1

45)

(3

10)

(1

45)

N

ET C

AS

H O

UTF

LOW

FR

OM

FIN

AN

CIN

G A

CTI

VIT

IES

(31

0)

(14

5)

(31

0)

(14

5)

NET

(D

ECR

EAS

E)/

INC

REA

SE

IN C

AS

H A

ND

CA

SH

EQ

UIV

ALE

NTS

HEL

D1

1,5

44

(1

2,0

31

)

1

1,5

98

(1

4,6

95

)

CASH

AN

D C

ASH

EQ

UIV

ALE

NTS

AT

BEG

INN

ING

OF

FIN

AN

CIA

L YE

AR

7,4

37

19

,46

88

,05

52

2,7

50

CA

SH

AN

D C

AS

H E

QU

IVA

LEN

TS A

T EN

D O

F FI

NA

NC

IAL

YEA

R

(Exc

lude

s Pa

tient

s M

oney

Hel

d In

Tru

st)

61

8,9

81

7

,43

7

19

,65

3

8,0

55

This

Sta

tem

ent

shou

ld b

e re

ad in

con

junc

tion

with

the

acco

mpa

nyin

g no

tes

Cas

h F

low

Sta

tem

ent

For

the

Yea

r En

ded

30

Ju

ne

20

16

Nor

ther

n H

ealt

h

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

5 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

(a)

Sta

tem

ent

of c

omp

lian

ce

(b)

Bas

is o

f ac

cou

nti

ng

pre

par

atio

n a

nd

mea

sure

men

t

The

finan

cial

sta

tem

ents

are

pre

pare

d in

acc

orda

nce

with

the

his

torica

l cos

t co

nven

tion,

exc

ept

for:

th

e fa

ir v

alue

of la

nd,

build

ings

, in

fras

truc

ture

, pl

ant

and

equi

pmen

t (r

efer

to

Not

e 1(

j));

su

pera

nnua

tion

expe

nse

(ref

er t

o N

ote

1(g)

); a

nd

Not

e 1

: S

um

mar

y of

Sig

nif

ican

t A

ccou

nti

ng

Pol

icie

s

Thes

e an

nual

fin

anci

al s

tate

men

ts r

epre

sent

the

aud

ited

gene

ral p

urpo

se fin

anci

al s

tate

men

ts for

Nor

ther

n H

ealth

for

the

period

end

ing

30 J

une

2016

. Th

e pu

rpos

e of

the

rep

ort

is t

o pr

ovid

e us

ers

with

in

form

atio

n ab

out

Nor

ther

n H

ealth

's s

tew

ards

hip

of t

he r

esou

rces

ent

rust

ed t

o it.

Thes

e fin

anci

al s

tate

men

ts a

re g

ener

al p

urpo

se fin

anci

al s

tate

men

ts w

hich

hav

e be

en p

repa

red

in a

ccor

danc

e w

ith t

he F

inan

cial

Man

agem

ent

Act

199

4 a

nd a

pplic

able

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds

(AASs)

, w

hich

incl

ude

inte

rpre

tatio

ns is

sued

by

the

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds B

oard

(AASB).

The

y ar

e pr

esen

ted

in a

man

ner

cons

iste

nt w

ith t

he r

equi

rem

ents

of AASB 1

01 P

rese

ntat

ion

of F

inan

cial

Sta

tem

ents

.

The

finan

cial

sta

tem

ents

als

o co

mpl

y w

ith r

elev

ant

Fina

ncia

l Rep

ortin

g D

irec

tions

(FR

Ds)

issu

ed b

y th

e D

epar

tmen

t of

Tre

asur

y an

d Fi

nanc

e, a

nd r

elev

ant

Sta

ndin

g D

irec

tions

(SD

s) a

utho

rise

d by

the

M

inis

ter

for

Fina

nce.

Nor

ther

n H

ealth

is a

not

-for

pro

fit e

ntity

and

the

refo

re a

pplie

s th

e ad

ditio

nal A

us p

arag

raph

s ap

plic

able

to

“not

-for

-pro

fit”

Hea

lth S

ervi

ces

unde

r th

e AASs.

The

annu

al fin

anci

al s

tate

men

ts w

ere

auth

oris

ed for

issu

e by

the

Boa

rd o

f N

orth

ern

Hea

lth o

n 17

th A

ugus

t 20

16.

Acc

ount

ing

polic

ies

are

sele

cted

and

app

lied

in a

man

ner

whi

ch e

nsur

es t

hat

the

resu

lting

fin

anci

al in

form

atio

n sa

tisfie

s th

e co

ncep

ts o

f re

leva

nce

and

relia

bilit

y, t

here

by e

nsur

ing

that

the

sub

stan

ce o

f th

e un

derlyi

ng t

rans

actio

ns o

r ot

her

even

ts is

rep

orte

d.

t

he fai

r va

lue

of a

sset

s ot

her

than

land

is g

ener

ally

bas

ed o

n th

eir

depr

ecia

ted

repl

acem

ent

valu

e.

The

goin

g co

ncer

n ba

sis

was

use

d to

pre

pare

the

fin

anci

al s

tate

men

ts.

Thes

e fin

anci

al s

tate

men

ts a

re p

rese

nted

in A

ustr

alia

n do

llars

, th

e fu

nctio

nal a

nd p

rese

ntat

ion

curr

ency

of N

orth

ern

Hea

lth.

The

finan

cial

sta

tem

ents

, ex

cept

for

cas

h flo

w in

form

atio

n, h

ave

been

pre

pare

d us

ing

the

accr

ual b

asis

of ac

coun

ting.

Und

er t

he a

ccru

al b

asis

, ite

ms

are

reco

gnis

ed a

s as

sets

, lia

bilit

ies,

equ

ity,

inco

me

or

expe

nses

whe

n th

ey s

atis

fy t

he d

efin

ition

s an

d re

cogn

ition

crite

ria

for

thos

e ite

ms,

tha

t is

the

y ar

e re

cogn

ised

in t

he r

epor

ting

period

to

whi

ch t

hey

rela

te,

rega

rdle

ss o

f w

hen

cash

is r

ecei

ved

or p

aid.

Judg

emen

ts,

estim

ates

and

ass

umpt

ions

are

req

uire

d to

be

mad

e ab

out

the

carr

ying

val

ues

of a

sset

s an

d lia

bilit

ies

that

are

not

rea

dily

app

aren

t fr

om o

ther

sou

rces

. Th

e es

timat

es a

nd a

ssoc

iate

d as

sum

ptio

ns a

re b

ased

on

prof

essi

onal

jud

gem

ents

der

ived

fro

m h

isto

rica

l exp

erie

nce

and

variou

s ot

her

fact

ors

that

are

bel

ieve

d to

be

reas

onab

le u

nder

the

circu

mst

ance

s. A

ctua

l res

ults

may

diff

er fro

m

thes

e es

timat

es.

n

on-c

urre

nt p

hysi

cal a

sset

s, w

hich

sub

sequ

ent

to a

cqui

sitio

n, a

re m

easu

red

at a

rev

alue

d am

ount

bei

ng t

heir fai

r va

lue

at t

he d

ate

of t

he r

eval

uatio

n le

ss a

ny s

ubse

quen

t ac

cum

ulat

ed d

epre

ciat

ion

and

subs

eque

nt im

pairm

ent

loss

es.

Rev

alua

tions

are

mad

e an

d ar

e re

-ass

esse

d w

hen

new

indi

ces

are

publ

ishe

d by

the

Val

uer

Gen

eral

to

ensu

re t

hat

the

carr

ying

am

ount

s do

not

mat

eria

lly d

iffer

fro

m t

heir

fair v

alue

s; a

nd

Con

sist

ent

with

AASB 1

3 Fa

ir V

alue

Mea

sure

men

t, N

orth

ern

Hea

lth d

eter

min

es t

he p

olic

ies

and

proc

edur

es for

bot

h re

curr

ing

fair v

alue

mea

sure

men

ts s

uch

as p

rope

rty,

pla

nt a

nd e

quip

men

t, a

nd fin

anci

al

inst

rum

ents

, an

d fo

r no

n-re

curr

ing

fair v

alue

mea

sure

men

ts s

uch

as n

on-f

inan

cial

phy

sica

l ass

ets

held

for

sal

e, in

acc

orda

nce

with

the

req

uire

men

ts o

f AASB 1

3 an

d th

e re

leva

nt F

RD

s.

The

estim

ates

and

und

erly

ing

assu

mpt

ions

are

rev

iew

ed o

n an

ong

oing

bas

is.

Rev

isio

ns t

o ac

coun

ting

estim

ates

are

rec

ogni

sed

in t

he p

erio

d in

whi

ch t

he e

stim

ate

is r

evis

ed if

the

rev

isio

n af

fect

s on

ly t

hat

period

or

in t

he p

erio

d of

the

rev

isio

n, a

nd fut

ure

period

s if

the

revi

sion

affec

ts b

oth

curr

ent

and

futu

re p

erio

ds.

Judg

emen

ts a

nd a

ssum

ptio

ns m

ade

by m

anag

emen

t in

the

app

licat

ion

of A

ASs

that

hav

e si

gnifi

cant

effec

ts o

n th

e fin

anci

al s

tate

men

ts a

nd e

stim

ates

, w

ith a

ris

k of

mat

eria

l adj

ustm

ents

in t

he s

ubse

quen

t re

port

ing

period

, re

late

to:

ac

tuar

ial a

ssum

ptio

ns for

em

ploy

ee b

enef

it pr

ovis

ions

bas

ed o

n lik

ely

tenu

re o

f ex

istin

g st

aff,

pat

tern

s of

leav

e cl

aim

s, fut

ure

sala

ry m

ovem

ents

and

fut

ure

disc

ount

rat

es (

refe

r to

Not

e 1(

k)).

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

6 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 7

of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Le

vel 1

– Q

uote

d (u

nadj

uste

d) m

arke

t pr

ices

in a

ctiv

e m

arke

ts for

iden

tical

ass

ets

or li

abili

ties

Le

vel 2

– V

alua

tion

tech

niqu

es for

whi

ch t

he lo

wes

t le

vel i

nput

tha

t is

sig

nific

ant

to t

he fai

r va

lue

mea

sure

men

t is

direc

tly o

r in

dire

ctly

obs

erva

ble

Le

vel 3

– V

alua

tion

tech

niqu

es for

whi

ch t

he lo

wes

t le

vel i

nput

tha

t is

sig

nific

ant

to t

he fai

r va

lue

mea

sure

men

t is

uno

bser

vabl

e.

The

Val

uer-

Gen

eral

Vic

toria

(VG

V)

is N

orth

ern

Hea

lth’s

inde

pend

ent

valu

atio

n ag

ency

.N

orth

ern

Hea

lth,

in c

onju

nctio

n w

ith V

GV m

onito

rs t

he c

hang

es in

the

fai

r va

lue

of e

ach

asse

t an

d lia

bilit

y th

roug

h re

leva

nt d

ata

sour

ces

to d

eter

min

e w

heth

er r

eval

uatio

n is

req

uire

d.

(c)

Rep

orti

ng

en

tity

The

finan

cial

sta

tem

ents

incl

ude

all t

he c

ontr

olle

d ac

tiviti

es o

f N

orth

ern

Hea

lth.

Its

prin

cipa

l add

ress

is:

185

Coo

per

Str

eet

Eppi

ngVic

toria

3076

.

Ob

ject

ives

an

d f

un

din

g

(d)

Pri

nci

ple

s of

con

solid

atio

n

Bod

ies

cons

olid

ated

into

the

Nor

ther

n H

ealth

rep

ortin

g en

tity

are

t

he N

orth

ern

Hea

lth R

esea

rch,

Tra

inin

g an

d Eq

uipm

ent

Trus

t

t

he H

ealth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Fo

unda

tion

Lim

ited

Inte

rseg

men

t Tr

ansa

ctio

ns

(e)

Sco

pe

and

pre

sen

tati

on o

f fi

nan

cial

sta

tem

ents

Fun

d A

ccou

nti

ng

Whe

re c

ontr

ol o

f an

ent

ity is

obt

aine

d du

ring

the

fin

anci

al p

erio

d, it

's r

esul

ts a

re in

clud

ed in

the

com

preh

ensi

ve o

pera

ting

stat

emen

t fr

om t

he d

ate

on w

hich

con

trol

com

men

ced.

Whe

re c

ontr

ol c

ease

s du

ring

th

e fin

anci

al p

erio

d, t

he e

ntity

's r

esul

ts a

re in

clud

ed for

tha

t pa

rt o

f th

e pe

riod

in w

hich

con

trol

exi

sted

. W

here

dis

sim

ilar

acco

untin

g po

licie

s ar

e ad

opte

d by

ent

ities

and

the

ir e

ffec

t is

con

side

red

mat

eria

l, ad

just

men

ts a

re m

ade

to e

nsur

e co

nsis

tent

pol

icie

s ar

e ad

opte

d in

the

se fin

anci

al s

tate

men

ts.

Nor

ther

n H

ealth

rec

ords

its

fund

s in

to o

ne o

f th

ree

t ype

s, n

amel

y: O

pera

ting,

Spe

cific

Pur

pose

and

Cap

ital F

unds

. N

orth

ern

Hea

lth’s

Cap

ital a

nd S

peci

fic P

urpo

se F

unds

incl

ude

unsp

ent

capi

tal d

onat

ions

and

re

ceip

ts fro

m fun

d-ra

isin

g ac

tiviti

es c

ondu

cted

sol

ely

in r

espe

ct o

f th

ese

fund

s.

In a

ccor

danc

e w

ith A

ASB 1

0 Con

solid

ated

Fin

anci

al S

tate

men

ts:

All

asse

ts a

nd li

abili

ties

for

whi

ch fai

r va

lue

is m

easu

red

or d

iscl

osed

in t

he fin

anci

al s

tate

men

ts a

re c

ateg

oris

ed w

ithin

the

fai

r va

lue

hier

arch

y, d

escr

ibed

as

follo

ws,

bas

ed o

n th

e lo

wes

t le

vel i

nput

tha

t is

si

gnifi

cant

to

the

fair v

alue

mea

sure

men

t as

a w

hole

:

For

the

purp

ose

of fai

r va

lue

disc

losu

res,

Nor

ther

n H

ealth

has

det

erm

ined

cla

sses

of as

sets

and

liab

ility

on

the

basi

s of

the

nat

ure,

cha

ract

eris

tics

and

risk

s of

the

ass

et o

r lia

bilit

y an

d th

e le

vel o

f th

e fa

ir

valu

e hi

erar

chy

as e

xpla

ined

abo

ve.

In a

dditi

on,

Nor

ther

n H

ealth

det

erm

ines

whe

ther

tra

nsfe

rs h

ave

occu

rred

bet

wee

n le

vels

in t

he h

iera

rchy

by

re-a

sses

sing

cat

egor

isat

ion

(bas

ed o

n th

e lo

wes

t le

vel i

nput

tha

t is

sig

nific

ant

to t

he fai

r va

lue

mea

sure

men

t as

a w

hole

) at

the

end

of ea

ch r

epor

ting

period

.

the

cons

olid

ated

fin

anci

al s

tate

men

ts o

f N

orth

ern

Hea

lth in

corp

orat

e th

e as

sets

and

liab

ilitie

s of

all

entit

ies

cont

rolle

d by

Nor

ther

n H

ealth

as

at 3

0 Ju

ne 2

016,

and

the

ir in

com

e an

d ex

pens

es

A d

escr

i ptio

n of

the

nat

ure

of N

orth

ern

Hea

lth’s

ope

ratio

ns a

nd it

s pr

inci

pal a

ctiv

ities

is in

clud

ed in

the

rep

ort

of o

pera

tions

whi

ch a

re s

epar

ate

to t

hese

sta

tem

ents

.

Nor

ther

n H

ealth

’s o

vera

ll ob

ject

ive

is t

o pr

ovid

e ou

tsta

ndin

g he

alth

car

e to

the

com

mun

ity,

as w

ell a

s im

prov

e th

e qu

ality

of lif

e fo

r Vic

torian

s.N

orth

ern

Hea

lth is

pre

dom

inan

tly fun

ded

by a

ccru

al b

ased

gra

nt fun

ding

for

the

pro

visi

on o

f ou

tput

s.

Tran

sact

ions

bet

wee

n se

gmen

ts w

ithin

the

Nor

ther

n H

ealth

hav

e be

en e

limin

ated

to

refle

ct t

he e

xten

t of

Nor

ther

n H

ealth

’s o

pera

tions

as

a gr

oup.

for

tha

t pa

rt o

f th

e re

port

ing

period

in w

hich

con

trol

exi

sted

; an

d

the

cons

olid

ated

fin

anci

al s

tate

men

ts e

xclu

de b

odie

s of

Nor

ther

n H

ealth

tha

t ar

e no

t co

ntro

lled

by N

orth

ern

Hea

lth a

nd t

here

fore

are

not

con

solid

ated

.

cont

rol e

xist

s w

hen

Nor

ther

n H

ealth

has

the

pow

er t

o go

vern

the

fin

anci

al a

nd o

pera

ting

polic

ies

of a

n en

tity

so a

s to

obt

ain

bene

fits

from

its

activ

ities

. I

n as

sess

ing

cont

rol,

pote

ntia

l vot

ing

r

ight

s th

at p

rese

ntly

are

exe

rcis

able

are

tak

en in

to a

ccou

nt.

The

con

solid

ated

fin

anci

al s

tate

men

ts in

clud

e th

e au

dite

d fin

anci

al s

tate

men

ts o

f th

e co

ntro

lled

entit

ies

liste

d in

Not

e 27

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

7 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 8

of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Ser

vice

s S

up

por

ted

By

Hea

lth

Ser

vice

s A

gre

emen

t an

d S

ervi

ces

Su

pp

orte

d B

y H

osp

ital

an

d C

omm

un

ity

Init

iati

ves

Res

iden

tial

Ag

ed C

are

Ser

vice

Com

pre

hen

sive

op

erat

ing

sta

tem

ent

Ca p

ital a

nd s

peci

fic it

ems,

whi

ch a

re e

xclu

ded

from

thi

s su

b-to

tal,

com

pris

e:

de

prec

iatio

n an

d am

ortis

atio

n, a

s de

scribe

d in

Not

e 1

(g);

Oth

er e

cono

mic

flo

ws

are

chan

ges

aris

ing

from

mar

ket

rem

easu

rem

ents

. T

hey

incl

ude;

Bal

ance

sh

eet

Sta

tem

ent

of c

han

ges

in e

qu

ity

The

com

preh

ensi

ve o

pera

ting

stat

emen

t in

clud

es t

he s

ubto

tal e

ntitl

ed ‘N

et R

esul

t Bef

ore

Cap

ital &

Spe

cific

item

s’ t

o en

hanc

e th

e un

ders

tand

ing

of t

he fin

anci

al p

erfo

rman

ce o

f N

orth

ern

Hea

lth.

This

sub

tota

l re

port

s th

e re

sult

excl

udes

item

s ou

tsid

e of

day

-tod

ay o

pera

ting

activ

ities

suc

h as

cap

ital g

rant

s, a

sset

s re

ceiv

ed o

r pr

ovid

ed fre

e of

cha

rge,

dep

reci

atio

n, e

xpen

ditu

re u

sing

cap

ital p

urpo

se in

com

e an

d ite

ms

of a

n un

usua

l nat

ure

and

amou

nt s

uch

as s

peci

fic in

com

e an

d ex

pens

es.

The

excl

usio

n of

the

se it

ems

is m

ade

to e

nhan

ce m

atch

ing

of in

com

e an

d ex

pens

es s

o as

to

faci

litat

e th

e co

mpa

rabi

lity

and

cons

iste

ncy

of r

esul

ts b

etw

een

year

s an

d Vic

torian

Pub

lic H

ealth

Ser

vice

s. T

he ‘n

et r

esul

t be

fore

cap

ital &

spe

cific

item

s’ is

use

d by

the

man

agem

ent

of N

orth

ern

Hea

lth,

DH

HS a

nd t

he V

icto

rian

Gov

ernm

ent

to m

easu

re t

he o

ngoi

ng o

pera

ting

perf

orm

ance

of H

ealth

Ser

vice

s.

Act

iviti

es c

lass

ified

as

Ser

vice

s Sup

port

ed b

y H

ealth

Ser

vice

s Agr

eem

ent

(HSA)

are

subs

tant

ially

fun

ded

by t

he D

epar

tmen

t of

Hea

lth a

nd H

uman

Ser

vice

s. T

hey

incl

ude

Res

iden

tial A

ged

Car

e Ser

vice

s (R

ACS)

and

fund

ing

from

oth

er s

ourc

es s

uch

as t

he C

omm

onw

ealth

, pa

tient

s an

d re

side

nts

unde

r th

e N

atio

nal H

ealth

care

Agr

eem

ent.

Ser

vice

s Sup

port

ed b

y H

ospi

tal a

nd C

omm

unity

Initia

tive

s (

H&

CI)

are

fu

nded

by

the

Hea

lth S

ervi

ce's

ow

n ac

tiviti

es o

r lo

cal i

nitia

tives

and

/or

the

Com

mon

wea

lth,

outs

ide

of t

he N

atio

nal H

ealth

care

Agr

eem

ent.

The

Nor

ther

n H

ealth

Res

iden

tial

Age

d Car

e Ser

vice

ope

ratio

ns a

re a

n in

tegr

al p

art

of N

orth

ern

Hea

lth a

nd s

hare

s its

res

ourc

es.

An

appo

rtio

nmen

t of

land

and

bui

ldin

gs h

as b

een

mad

e ba

sed

on flo

or s

pace

. Th

e re

sults

of th

e tw

o op

erat

ions

hav

e be

en s

egre

gate

d ba

sed

on a

ctua

l rev

enue

ear

ned

and

expe

nditu

re in

curr

ed b

y ea

ch o

pera

tion

in N

otes

2 a

nd 3

to

the

finan

cial

sta

tem

ents

.

◦

n

on-c

urre

nt a

sset

rev

alua

tion

incr

emen

ts/

decr

emen

ts

sp

ecifi

c in

com

e/ex

pens

e co

mpr

ises

the

fol

low

ing

item

s, w

here

mat

eria

l:

ca

pita

l pur

pose

inco

me,

whi

ch c

ompr

ises

all

tied

gran

ts,

dona

tions

and

beq

uest

s re

ceiv

ed for

the

pur

pose

of ac

quirin

g no

n-cu

rren

t as

sets

, su

ch a

s ca

pita

l wor

ks,

plan

t an

d eq

uipm

ent

or in

tang

ible

as

sets

. It

als

o in

clud

es d

onat

ions

of pl

ant

and

equi

pmen

t (r

efer

Not

e 1

(f))

. Con

sequ

ently

, th

e re

cogn

ition

of re

venu

e as

cap

ital p

urpo

se in

com

e is

bas

ed o

n th

e in

tent

ion

of t

he p

rovi

der

of t

he r

even

ue a

t th

e tim

e th

e re

venu

e is

pro

vide

d.

The

stat

emen

t of

cha

nges

in e

quity

pre

sent

s re

conc

iliat

ions

of ea

ch n

on-o

wne

r an

d ow

ner

chan

ges

in e

quity

fro

m o

peni

ng b

alan

ce a

t th

e be

ginn

ing

of t

he r

epor

ting

period

to

the

clos

ing

bala

nce

at t

he e

nd

of t

he r

epor

ting

period

. It

als

o sh

ows

sepa

rate

ly c

hang

es d

ue t

o am

ount

s re

cogn

ised

in t

he c

ompr

ehen

sive

res

ult

and

amou

nts

reco

gnis

ed in

oth

er c

ompr

ehen

sive

inco

me.

ex

pend

iture

usi

ng c

apita

l pur

pose

inco

me,

com

pris

es e

xpen

ditu

re w

hich

eith

er fal

ls b

elow

the

ass

et c

apita

lisat

ion

thre

shol

d or

doe

sn’t

mee

t as

set

reco

gniti

on c

rite

ria

and

ther

efor

e do

es n

ot r

esul

t in

th

e re

cogn

ition

of an

ass

et in

the

bal

ance

she

et,

whe

re fun

ding

for

tha

t ex

pend

iture

is fro

m c

apita

l pur

pose

inco

me.

im

pairm

ent

of fin

anci

al a

nd n

on-f

inan

cial

ass

ets,

incl

udes

all

impa

irm

ent

loss

es (

and

reve

rsal

of pr

evio

us im

pairm

ent

loss

es),

whi

ch h

ave

been

rec

ogni

sed

in a

ccor

danc

e w

ith N

otes

1 (

k);

as

sets

pro

vide

d or

rec

eive

d fr

ee o

f ch

arge

(re

fer

to N

otes

1 (

f) a

nd (

g));

and

Ass

ets

and

liabi

litie

s ar

e ca

tego

rise

d ei

ther

as

curr

ent

or n

on-c

urre

nt.

Non

-cur

rent

ass

ets

or li

abili

ties

are

thos

e ex

pect

ed t

o be

rec

over

ed/s

ettle

d m

ore

than

12

mon

ths

afte

r re

port

ing

period

. D

etai

ls a

re

disc

lose

d in

the

not

es w

here

rel

evan

t.

The

net

resu

lt is

equ

ival

ent

to p

rofit

or

loss

der

ived

in a

ccor

danc

e w

ith A

ASs.

ga

ins

and

loss

es fro

m d

ispo

sals

of no

n-fin

anci

al a

sset

s;

re

valu

atio

ns a

nd im

pairm

ents

of

non-

finan

cial

phy

sica

l and

inta

ngib

le a

sset

s;

re

mea

sure

men

t ar

isin

g fr

om d

efin

ed b

enef

it su

pera

nnua

tion

plan

s: a

nd

fa

ir v

alue

cha

nges

in fin

anci

al in

stru

men

ts.

◦

r

estr

uctu

ring

of op

erat

ions

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

8 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 9

of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Cas

h f

low

sta

tem

ent

Rou

nd

ing

Com

par

ativ

e In

form

atio

n

(f)

Inco

me

from

tra

nsa

ctio

ns

Gov

ern

men

t G

ran

ts a

nd

oth

er t

ran

sfer

s of

inco

me

(oth

er t

han

con

trib

uti

ons

by

own

ers)

Ind

irec

t C

ontr

ibu

tion

s fr

om t

he

DH

HS

Insu

ranc

e is

rec

o gni

sed

as r

even

ue fol

low

ing

advi

ce fro

m t

he D

HH

S.

Pat

ien

t an

d R

esid

ent

Fees

Pri

vate

Pra

ctic

e Fe

es

Rev

enu

e fr

om c

omm

erci

al a

ctiv

itie

s

Don

atio

ns

and

Oth

er B

equ

ests

Whe

re n

eces

sary

, th

e pr

evio

us y

ear's

figur

es h

ave

been

rec

lass

ified

to

faci

litat

e co

mpa

riso

n.

Am

ount

s di

sclo

sed

as r

even

ue a

re,

whe

re a

pplic

able

, ne

t of

ret

urns

, al

low

ance

s an

d du

ties

and

taxe

s.

For

the

cash

flo

w s

tate

men

t pr

esen

tatio

n pu

rpos

es,

cash

and

cas

h eq

uiva

lent

s in

clud

es s

hort

-ter

m d

epos

its.

Min

or d

iscr

epan

cies

in t

able

s be

twee

n to

tals

and

sum

of co

mpo

nent

s ar

e du

e to

rou

ndin

g.

Inco

me

is r

ecog

nise

d in

acc

orda

nce

with

AASB 1

18 R

even

ue a

nd is

rec

ogni

sed

as t

o th

e ex

tent

tha

t it

is p

roba

ble

that

the

eco

nom

ic b

enef

its w

ill flo

w t

o N

orth

ern

Hea

lth a

nd t

he in

com

e ca

n be

rel

iabl

y m

easu

red

at fai

r va

lue.

Une

arne

d in

com

e at

rep

ortin

g da

te is

rep

orte

d as

inco

me

rece

ived

in a

dvan

ce.

In a

ccor

danc

e w

ith A

ASB 1

004

Con

trib

utio

ns,

gove

rnm

ent

gran

ts a

nd o

ther

tra

nsfe

rs o

f in

com

e (o

ther

tha

n co

ntribu

tions

by

owne

rs)

are

reco

gnis

ed a

s in

com

e w

hen

Nor

ther

n H

ealth

gai

ns c

ontr

ol o

f th

e un

derlyi

ng a

sset

s irre

spec

tive

of w

heth

er c

ondi

tions

are

impo

sed

on t

he e

ntiti

es u

se o

f th

e co

ntribu

tions

.

Long

Ser

vice

Lea

ve (

LSL)

– R

even

ue is

rec

ogni

sed

upon

fin

alis

atio

n of

mov

emen

ts in

LSL

liabi

lity

in li

ne w

ith t

he a

rran

gem

ents

set

out

in t

he M

etro

polit

an H

ealth

and

Age

d Car

e Ser

vice

s D

ivis

ion

Hos

pita

l Circu

lar

05/2

013.

Patie

nt fee

s ar

e re

cogn

ised

as

reve

nue

at t

he t

ime

invo

ices

are

rai

sed.

Priv

ate

prac

tice

fees

are

rec

ogni

sed

as r

even

ue a

t th

e tim

e in

voic

es a

re r

aise

d.

Rev

enue

fro

m c

omm

erci

al a

ctiv

ities

suc

h as

car

par

king

and

ret

ail a

ctiv

ities

are

rec

ogni

sed

at t

he t

ime

invo

ices

are

rai

sed.

Don

atio

ns a

nd b

eque

sts

are

reco

gnis

ed a

s re

venu

e w

hen

rece

ived

. If

don

atio

ns a

re for

a s

peci

al p

urpo

se,

they

may

be

appr

opriat

ed t

o a

surp

lus,

suc

h as

the

spe

cific

res

tric

ted

purp

ose

surp

lus.

Cas

h flo

ws

are

clas

sifie

d ac

cord

ing

to w

heth

er o

r no

t th

ey a

rise

fro

m o

pera

ting

activ

ities

, in

vest

ing

activ

ities

, or

fin

anci

ng a

ctiv

ities

. Th

is c

lass

ifica

tion

is c

onsi

sten

t w

ith r

equi

rem

ents

und

er A

ASB 1

07

Sta

tem

ent

of C

ash

Flow

s.

All

amou

nts

show

n in

the

fin

anci

al s

tate

men

ts a

re e

xpre

ssed

to

the

near

est

$1,0

00 u

nles

s ot

herw

ise

stat

ed.

Con

trib

utio

ns a

re d

efer

red

as in

com

e in

adv

ance

whe

n N

orth

ern

Hea

lth h

as a

pre

sent

obl

igat

ion

to r

epay

the

m a

nd t

he p

rese

nt o

blig

atio

n ca

n be

rel

iabl

y m

easu

red.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

9 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 8

of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

0 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Inte

rest

Rev

enu

e

Sal

e of

inve

stm

ents

Fair

val

ue

of a

sset

s an

d s

ervi

ces

rece

ived

fre

e of

ch

arg

e or

for

nom

inal

con

sid

erat

ion

(g)

Exp

ense

rec

ogn

itio

n

Emp

loye

e ex

pen

ses

Empl

oyee

exp

ense

s in

clud

e:

wag

es a

nd s

alar

ies;

an

nual

leav

e;

si

ck le

ave;

long

ser

vice

leav

e; a

nd

supe

rann

uatio

n ex

pens

es w

hich

are

rep

orte

d di

ffer

ently

dep

endi

ng u

pon

whe

ther

em

ploy

ees

are

mem

bers

of de

fined

ben

efit

or d

efin

ed c

ontr

ibut

ion

plan

s.

Defi

ned

co

ntr

ibu

tio

n s

up

era

nn

uati

on

pla

ns

Defi

ned

ben

efi

t su

pera

nn

uati

on

pla

ns

The

nam

e an

d de

tails

of th

e m

ajor

em

ploy

ee s

uper

annu

atio

n fu

nds

and

cont

ribu

tions

mad

e by

Nor

ther

n H

ealth

are

dis

clos

ed in

Not

e 15

: Sup

eran

nuat

ion.

Dep

reci

atio

n

Inta

ngib

le p

rodu

ced

asse

ts w

ith fin

ite li

ves

are

depr

ecia

ted

as a

n ex

pens

e fr

om t

rans

actio

ns o

n a

syst

emat

ic b

asis

ove

r th

e as

set’s

use

ful l

ife.

Dep

reci

atio

n is

gen

eral

ly c

alcu

late

d on

a s

trai

ght

line

basi

s, a

t a

rate

tha

t al

loca

tes

the

asse

t va

lue,

less

any

est

imat

ed r

esid

ual v

alue

ove

r its

est

imat

ed u

sefu

l life

. Es

timat

es o

f th

e re

mai

ning

use

ful l

ives

, re

sidu

al v

alue

and

dep

reci

atio

n m

etho

d fo

r al

l ass

ets

are

revi

ewed

at

leas

t an

nual

ly,

and

adju

stm

ents

mad

e w

here

app

ropr

iate

. Th

is d

epre

ciat

ion

char

ge is

not

fun

ded

by D

HH

S.

Ass

ets

with

a c

ost

in e

xces

s of

$1,

000

are

capi

talis

ed.

Dep

reci

atio

n on

dep

reci

able

as

sets

is p

rovi

ded

so a

s to

allo

cate

the

ir c

ost

or v

alua

tion

over

the

ir e

stim

ated

use

ful l

ives

.

The

follo

win

g ta

ble

indi

cate

s th

e ex

pect

ed u

sefu

l liv

es o

f no

n cu

rren

t as

sets

on

whi

ch t

he d

epre

ciat

ion

char

ges

are

base

d.

Expe

nses

are

rec

ogni

sed

as t

hey

are

incu

rred

and

rep

orte

d in

the

fin

anci

al y

ear

to w

hich

the

y re

late

.

Empl

oyee

s of

Nor

ther

n H

ealth

are

ent

itled

to

rece

ive

supe

rann

uatio

n be

nefit

s an

d th

e N

orth

ern

Hea

lth c

ontr

ibut

es t

o bo

th t

he d

efin

ed b

enef

it an

d de

fined

con

trib

utio

n pl

ans.

Th

e de

fined

ben

efit

plan

(s)

prov

ide

bene

fits

base

d on

yea

rs o

f se

rvic

e an

d fin

al a

vera

ge s

alar

y.

In r

elat

ion

to d

efin

ed c

ontr

ibut

ion

(i.e

. ac

cum

ulat

ion)

sup

eran

nuat

ion

plan

s, t

he a

ssoc

iate

d ex

pens

e is

sim

ply

the

empl

oyer

con

trib

utio

ns t

hat

are

paid

or

paya

ble

in r

espe

ct o

f em

ploy

ees

who

are

mem

bers

of

the

se p

lans

dur

ing

the

repo

rtin

g pe

riod

. Con

trib

utio

ns t

o de

fined

con

trib

utio

n su

pera

nnua

tion

plan

s ar

e ex

pens

ed w

hen

incu

rred

.

The

amou

nt c

harg

ed t

o th

e co

mpr

ehen

sive

ope

ratin

g st

atem

ent

in r

espe

ct o

f de

fined

ben

efit

supe

rann

uatio

n pl

ans

repr

esen

ts t

he c

ontr

ibut

ions

mad

e by

Nor

ther

n H

ealth

to

the

supe

rann

uatio

n pl

ans

in

resp

ect

of t

he s

ervi

ces

of c

urre

nt s

taff d

urin

g th

e re

port

ing

period

. S

uper

annu

atio

n co

ntribu

tions

are

mad

e to

the

pla

ns b

ased

on

the

rele

vant

rul

es o

f ea

ch p

lan,

and

are

bas

ed u

pon

actu

aria

l adv

ice.

Inte

rest

rev

enue

is r

eco g

nise

d as

it is

rec

eive

d.

The

gain

/los

s on

the

sal

e of

inve

stm

ents

is r

ecog

nise

d w

hen

the

inve

stm

ent

is r

ealis

ed.

Res

ourc

es r

ecei

ved

free

of ch

arge

or

for

nom

inal

con

side

ratio

n ar

e re

cogn

ised

at

thei

r fa

ir v

alue

whe

n th

e tr

ansf

eree

obt

ains

con

trol

ove

r th

em,

irre

spec

tive

of w

heth

er r

estr

ictio

ns o

r co

nditi

ons

are

impo

sed

over

the

use

of th

e co

ntribu

tions

, un

less

rec

eive

d fr

om a

noth

er H

ealth

Ser

vice

or

agen

cy a

s a

cons

eque

nce

of a

res

truc

turing

of ad

min

istr

ativ

e ar

rang

emen

ts.

In

the

latt

er c

ase,

suc

h tr

ansf

er w

ill b

e re

cogn

ised

at

carr

ying

val

ue.

Con

trib

utio

ns in

the

for

m o

f se

rvic

es a

re o

nly

reco

gnis

ed w

hen

a fa

ir v

alue

can

be

relia

bly

dete

rmin

ed a

nd t

he s

ervi

ce w

ould

hav

e be

en p

urch

ased

if n

ot r

ecei

ved

as a

do

natio

n.

All

infr

astr

uctu

re a

sset

s, b

uild

ings

, pl

ant

and

equi

pmen

t an

d ot

her

non-

finan

cial

phy

sica

l ass

ets

that

hav

e fin

ite u

sefu

l liv

es a

re d

epre

ciat

ed (

i.e.

excl

udes

land

ass

ets

held

for

sal

e, a

nd in

vest

men

t pr

oper

ties)

. D

epre

ciat

ion

begi

ns w

hen

the

asse

t is

ava

ilabl

e fo

r us

e, w

hich

is w

hen

it is

in t

he lo

catio

n an

d co

nditi

on n

eces

sary

for

it t

o be

cap

able

of op

erat

ing

in a

man

ner

inte

nded

by

man

agem

ent.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

10 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

1 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

20

16

20

15

Bui

ldin

gs S

truc

ture

She

ll Bui

ldin

g Fa

bric

5 -

53 Y

ears

5 -

53 Y

ears

S

ite E

ngin

eering

Ser

vice

s an

d Cen

tral

Pla

nt17

- 3

3 Ye

ars

17 -

33

Year

sCen

tral

Pla

nt F

it O

ut2

- 18

Yea

rs2

- 18

Yea

rs T

runk

Ret

icul

ated

Bui

ldin

g Sys

tem

s7

- 23

Yea

rs7

- 23

Yea

rsM

edic

al E

quip

men

t7

- 10

Yea

rs7

- 10

Yea

rsCom

pute

rs a

nd C

omm

unic

atio

n 3

Year

s 3

Year

sFu

rnitu

re a

nd F

ittin

gs 1

0 Ye

ars

1

0 Ye

ars

Mot

or V

ehic

les

4

Year

s 4

Year

sN

on-M

edic

al E

quip

men

t3

- 10

Yea

rs3

- 10

Yea

rs

Am

orti

sati

on

an

nual

ly;

and

w

hene

ver

ther

e is

an

indi

catio

n th

at t

he in

tang

ible

ass

et m

ay b

e im

paired

.

Fin

ance

cos

ts

Fina

nce

cost

s fo

r N

orth

ern

Hea

lth in

clud

e:

inte

rest

on

shor

t-te

rm a

nd lo

n g-t

erm

bor

row

ings

(In

tere

st e

xpen

se is

rec

ogni

sed

in t

he p

erio

d in

whi

ch it

is in

curr

ed);

am

ortis

atio

n of

dis

coun

ts o

r pr

emiu

ms

rela

ting

to b

orro

win

gs;

am

ortis

atio

n of

anc

illar

y co

sts

incu

rred

in c

onne

ctio

n w

ith t

he a

rran

gem

ent

of b

orro

win

gs;

and

fin

ance

cha

rges

in r

espe

ct o

f fin

ance

leas

es r

ecog

nise

d in

acc

orda

nce

with

AASB 1

17Le

ases

.G

ran

ts a

nd

oth

er t

ran

sfer

s

Oth

er o

per

atin

g e

xpen

ses

Sup

plie

s an

d co

nsum

able

s

As

part

of th

e bu

ildin

gs v

alua

tion,

bui

ldin

g va

lues

wer

e se

para

ted

into

com

pone

nts

and

each

com

pone

nt a

sses

sed

for

its u

sefu

l life

whi

ch is

rep

rese

nted

abo

ve.

Inta

ngib

le p

rodu

ced

asse

ts w

ith fin

ite li

ves

are

depr

ecia

ted

as a

n ex

pens

e on

a s

yste

mat

ic b

asis

ove

r th

e as

set’s

use

ful l

ife.

The

amor

tisat

ion

period

and

the

am

ortis

atio

n m

etho

d fo

r an

inta

ngib

le a

sset

with

a fin

ite u

sefu

l life

are

rev

iew

ed a

t le

ast

at t

he e

nd o

f ea

ch a

nnua

l rep

ortin

g pe

riod

. In

add

ition

, an

ass

essm

ent

is m

ade

at

each

rep

ortin

g da

te t

o de

term

ine

whe

ther

the

re a

re in

dica

tors

tha

t th

e in

tang

ible

ass

et c

once

rned

is im

paired

. If

so,

the

ass

et c

once

rned

is t

este

d as

to

whe

ther

its

carr

ying

val

ue e

xcee

ds it

s re

cove

rabl

e am

ount

. N

orth

ern

Hea

lth t

ests

all

inta

ngib

le a

sset

s w

ith in

defin

ite u

sefu

l liv

es for

impa

irm

ent

by c

ompa

ring

the

rec

over

able

am

ount

for

eac

h as

set

with

its

carr

ying

am

ount

:

Inta

ngib

le a

sset

s w

ith fin

ite u

sefu

l liv

es a

re a

mor

tised

ove

r 3

year

s (2

015:

3 y

ears

).Any

exc

ess

of t

he c

arry

ing

amou

nt o

ver

the

reco

vera

ble

amou

nt is

rec

ogni

sed

as a

n im

pairm

ent

loss

.

Fina

nce

cost

s ar

e re

cogn

ised

as

expe

nses

in t

he p

erio

d in

whi

ch t

hey

are

incu

rred

.

Sup

plie

s an

d se

rvic

es c

osts

whi

ch a

re r

ecog

nise

d as

an

expe

nse

in t

he r

epor

ting

period

in w

hich

the

y ar

e in

curr

ed.

The

carr

ying

am

ount

s of

any

inve

ntor

ies

held

for

dis

trib

utio

n ar

e ex

pens

ed w

hen

dist

ribu

ted.

Gra

nts

and

othe

r tr

ansf

ers

to t

hird

par

ties

(oth

er t

han

cont

ribu

tion

to o

wne

rs)

are

reco

gnis

ed a

s an

exp

ense

in t

he r

epor

ting

period

in w

hich

the

y ar

e pa

id o

r pa

yabl

e. T

hey

incl

ude

tran

sact

ions

suc

h as

: gr

ants

, su

bsid

ies

and

pers

onal

ben

efit

paym

ents

mad

e in

cas

h to

indi

vidu

als.

Oth

er o

pera

ting

expe

nses

gen

eral

ly r

epre

sent

the

day

-to-

day

runn

ing

cost

s in

curr

ed in

nor

mal

ope

ratio

ns a

nd in

clud

e:

Am

ortis

atio

n is

allo

cate

d to

inta

ngib

le n

on-p

rodu

ced

asse

ts w

ith fin

ite u

sefu

l liv

es o

n a

syst

emat

ic (

typi

cally

str

aigh

t-lin

e) b

asis

ove

r th

e as

set’s

use

ful l

ife.

Am

ortis

atio

n be

gins

whe

n th

e as

set

is a

vaila

ble

for

use,

tha

t is

, w

hen

it is

in t

he lo

catio

n an

d co

nditi

on n

eces

sary

for

it t

o be

cap

able

of op

erat

ing

in t

he m

anne

r in

tend

ed b

y m

anag

emen

t. T

he c

onsu

mpt

ion

of in

tang

ible

non

-pro

duce

d as

sets

with

fin

ite

usef

ul li

ves

is c

lass

ified

as

amor

tisat

ion.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

11 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

0 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

2 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Bad

and

dou

btfu

l deb

ts

Fair v

alue

of as

sets

, se

rvic

es a

nd r

esou

rces

pro

vide

d fr

ee o

f ch

arge

or

for

nom

inal

con

side

ratio

n

(h)

Oth

er e

con

omic

flo

ws

incl

ud

ed in

net

res

ult

Net

gai

n/

(lo

ss)

on n

on-f

inan

cial

ass

ets

R

eval

uatio

n ga

ins/

(lo

sses

) of

non

-fin

anci

al p

hysi

cal a

sset

sRef

er t

o N

ote

1(j)

Rev

alua

tions

of no

n-fin

anci

al p

hysi

cal a

sset

s.

N

et g

ain/

(lo

ss)

on d

ispo

sal o

f no

n-fin

anci

al a

sset

sAny

gai

n or

loss

on

the

disp

osal

of no

n-fin

anci

al a

sset

s is

rec

ogni

sed

at t

he d

ate

of d

ispo

sal a

nd is

the

diff

eren

ce b

etw

een

the

proc

eeds

and

the

car

ryin

g va

lue

of t

he a

sset

at

the

time.

Net

gai

n/

(lo

ss)

on f

inan

cial

inst

rum

ents

Net

gai

n/ (

loss

) on

fin

anci

al in

stru

men

ts in

clud

es:

r

ealis

ed a

nd u

nrea

lised

gai

ns a

nd lo

sses

fro

m r

eval

uatio

ns o

f fin

anci

al in

stru

men

ts a

t fa

ir v

alue

;

im

pairm

ent

and

reve

rsal

of im

pairm

ent

for

finan

cial

inst

rum

ents

at

amor

tised

cos

t (r

efer

to

Not

e 1

(j))

; an

d

d

ispo

sals

of fin

anci

al a

sset

s an

d de

reco

gniti

on o

f fin

anci

al li

abili

ties.

Am

orti

sati

on o

f n

on-p

rod

uce

d in

tan

gib

le a

sset

s

Imp

airm

ent

of n

on-f

inan

cial

ass

ets

Rev

alu

atio

ns

of f

inan

cial

inst

rum

ent

at f

air

valu

eRef

er t

o N

ote

1 (i

) Fi

nanc

ial i

nstr

umen

ts.

Sh

are

of n

et p

rofi

ts/

(lo

sses

) of

ass

ocia

tes

and

joi

nt

enti

ties

, ex

clu

din

g d

ivid

end

s.Ref

er t

o N

ote

1 (d

) Pr

inci

ples

of co

nsol

idat

ion.

Oth

er g

ain

s/ (

loss

es)

from

oth

er c

omp

reh

ensi

ve in

com

eO

ther

gai

ns/

(los

ses)

incl

ude:

t

rans

fer

of a

mou

nts

from

the

res

erve

s to

acc

umul

ated

sur

plus

or

net

resu

lt du

e to

dis

posa

l or

dere

cogn

ition

or

recl

assi

ficat

ion.

(i)

Fin

anci

al in

stru

men

ts

The

follo

win

g re

fers

to

finan

cial

inst

rum

ents

unl

ess

othe

rwis

e st

ated

.

Goo

dwill

and

inta

ngib

le a

sset

s w

ith in

defin

ite u

sefu

l liv

es (

and

inta

ngib

le a

sset

s no

t av

aila

ble

for

use)

are

tes

ted

annu

ally

for

impa

irm

ent

and

whe

neve

r th

ere

is a

n in

dica

tion

that

the

ass

et m

ay b

e im

paired

. Ref

er t

o N

ote

1 (j

) Ass

ets.

Fina

ncia

l ins

trum

ents

arise

out

of co

ntra

ctua

l agr

eem

ents

tha

t gi

ve r

ise

to a

fin

anci

al a

sset

of on

e en

tity

and

a fin

anci

al li

abili

ty o

r eq

uity

inst

rum

ent

of a

noth

er e

ntity

. D

ue t

o th

e na

ture

of N

orth

ern

Hea

lth’s

ac

tiviti

es,

cert

ain

finan

cial

ass

ets

and

finan

cial

liab

ilitie

s ar

ise

unde

r st

atut

e ra

ther

tha

n a

cont

ract

. Suc

h fin

anci

al a

sset

s an

d fin

anci

al li

abili

ties

do n

ot m

eet

the

defin

ition

of fin

anci

al in

stru

men

ts in

AASB

132

Fina

ncia

l Ins

trum

ents

: Pr

esen

tation

. Fo

r ex

ampl

e, s

tatu

tory

rec

eiva

bles

arisi

ng fro

m t

axes

, fin

es a

nd p

enal

ties

do n

ot m

eet

the

defin

ition

of fin

anci

al in

stru

men

ts a

s th

ey d

o no

t ar

ise

unde

r co

ntra

ct.

Oth

er e

cono

mic

flo

ws

are

chan

ges

in v

olum

e or

val

ue o

f as

sets

or

liabi

litie

s th

at d

o no

t re

sult

from

tra

nsac

tions

.

Con

trib

utio

ns in

the

for

m o

f se

rvic

es a

re o

nly

reco

gnis

ed w

hen

a fa

ir v

alue

can

be

relia

bly

dete

rmin

ed a

nd t

he s

ervi

ces

wou

ld h

ave

been

pur

chas

ed if

not

don

ated

.

Net

gai

n/ (

loss

) on

non

-fin

anci

al a

sset

s an

d lia

bilit

ies

incl

udes

rea

lised

and

unr

ealis

ed g

ains

and

loss

es a

s fo

llow

s:

Ref

er t

o N

ote

1 (j

) Im

pairm

ent

of fin

anci

al a

sset

s.

Con

trib

utio

ns o

f re

sour

ces

prov

ided

fre

e of

cha

rge

or for

nom

inal

con

side

ratio

n ar

e re

cogn

ised

at

thei

r fa

ir v

alue

whe

n th

e tr

ansf

eree

obt

ains

con

trol

ove

r th

em,

irre

spec

tive

of w

heth

er r

estr

ictio

ns o

r co

nditi

ons

are

impo

sed

over

the

use

of th

e co

ntribu

tions

, un

less

rec

eive

d fr

om a

noth

er a

genc

y as

a c

onse

quen

ce o

f a

rest

ruct

urin

g of

adm

inis

trat

ive

arra

ngem

ents

. In

the

latt

er c

ase,

suc

h a

tran

sfer

will

be

reco

gnis

ed a

t its

car

ryin

g va

lue.

Whe

re r

elev

ant,

for

not

e di

sclo

sure

pur

pose

s, a

dis

tinct

ion

is m

ade

betw

een

thos

e fin

anci

al a

sset

s an

d fin

anci

al li

abili

ties

that

mee

t th

e de

finiti

on o

f fin

anci

al in

stru

men

ts in

acc

orda

nce

with

AASB 1

32 a

nd

thos

e th

at d

o no

t.

Inta

ngib

le n

on-p

rodu

ced

asse

ts w

ith fin

ite li

ves

are

amor

tised

as

an 'o

ther

eco

nom

ic flo

w' o

n a

syst

emat

ic b

asis

ove

r th

e as

set’s

use

ful l

ife.

Am

ortis

atio

n be

gins

whe

n th

e as

set

is a

vaila

ble

for

use,

tha

t is

w

hen

it is

in t

he lo

catio

n an

d co

nditi

on n

eces

sary

for

it t

o be

cap

able

of op

erat

ing

in t

he m

anne

r in

tend

ed b

y m

anag

emen

t.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

12 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

3 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Loan

s an

d re

ceiv

able

s

Fina

ncia

l lia

bilit

ies

at a

mor

tised

cos

t

Fina

ncia

l ins

trum

ent

liabi

litie

s m

easu

red

at a

mor

tised

cos

t in

clud

e al

l of N

orth

ern

Hea

lth's

con

trac

tual

pay

able

s, d

epos

its h

eld

and

adva

nces

rec

eive

d, a

nd in

tere

st-b

earing

arr

ange

men

ts o

ther

tha

nth

ose

desi

gnat

ed a

t fa

ir v

alue

thr

ough

pro

fit a

nd lo

ss.

(j)

Ass

ets

Cas

h a

nd

Cas

h E

qu

ival

ents

Rec

eiva

ble

sRec

eiva

bles

con

sist

of:

c

ontr

actu

al r

ecei

vabl

es,

whi

ch in

clud

es m

ainl

y de

btor

s in

rel

atio

n to

goo

ds a

nd s

ervi

ces,

ac

crue

d in

vest

men

t in

com

e, a

nd

s

tatu

tory

rec

eiva

bles

, w

hich

incl

udes

pre

dom

inan

tly a

mou

nts

owin

g fr

om t

he V

icto

rian

Gov

ernm

ent

and

Goo

ds a

nd S

ervi

ces

Tax

(“G

ST”

) in

put

tax

cred

its r

ecov

erab

le.

Inve

stm

ents

an

d o

ther

fin

anci

al a

sset

s

Inve

stm

ents

are

cla

ssifi

ed in

the

fol

low

ing

cate

gories

:

fin

anci

al a

sset

s at

fai

r va

lue

thro

ugh

prof

it or

loss

;

h

eld-

to-m

atur

it y;

lo

ans

and

rece

ivab

les;

and

a

vaila

ble-

for-

sale

fin

anci

al a

sset

s.

Inve

nto

ries

Loan

s an

d re

ceiv

able

s ca

tego

ry in

clud

es c

ash

and

depo

sits

(re

fer

to N

ote

1(j)

), t

erm

dep

osits

with

mat

urity

gre

ater

tha

n th

ree

mon

ths,

tra

de r

ecei

vabl

es,

loan

s an

d ot

her

rece

ivab

les,

but

not

sta

tuto

ry

rece

ivab

les.

Cas

h an

d ca

sh e

quiv

alen

ts r

ecog

nise

d on

the

bal

ance

she

et c

ompr

ise

cash

on

hand

and

cas

h at

ban

k, d

epos

its a

t ca

ll an

d hi

ghly

liqu

id in

vest

men

ts (

with

an

orig

inal

mat

urity

of th

ree

mon

ths

or le

ss),

whi

ch

are

held

for

the

pur

pose

of m

eetin

g sh

ort

term

cas

h co

mm

itmen

ts r

athe

r th

an for

inve

stm

ent

purp

oses

, w

hich

are

rea

dily

con

vert

ible

to

know

n am

ount

s of

cas

h w

ith a

n in

sign

ifica

nt r

isk

of c

hang

es in

val

ue.

Nor

ther

n H

ealth

cla

ssifi

es it

s ot

her

finan

cial

ass

ets

betw

een

curr

ent

and

non-

curr

ent

asse

ts b

ased

on

the

purp

ose

for

whi

ch t

he a

sset

s w

ere

acqu

ired

. M

anag

emen

t de

term

ines

the

cla

ssifi

catio

n of

its

othe

r fin

anci

al a

sset

s at

initi

al r

ecog

nitio

n.

The

basi

s us

ed in

ass

essi

ng lo

ss o

f se

rvic

e po

tent

ial f

or in

vent

orie

s he

ld for

dis

trib

utio

n in

clud

e cu

rren

t re

plac

emen

t co

st a

nd t

echn

ical

or

func

tiona

l obs

oles

cenc

e. Te

chni

cal o

bsol

esce

nce

occu

rs w

hen

an

item

stil

l fun

ctio

ns for

som

e or

all

of t

he t

asks

it w

as o

rigi

nally

acq

uire

d to

do,

but

no

long

er m

atch

es e

xist

ing

tech

nolo

gies

. F

unct

iona

l obs

oles

cenc

e oc

curs

whe

n an

item

no

long

er fun

ctio

ns t

he w

ay it

did

w

hen

it w

as first

acq

uire

d.

All

othe

r in

vent

orie

s ar

e m

easu

red

on t

he b

asis

of w

eigh

ted

aver

age

cost

and

adj

uste

d fo

r an

y lo

ss o

f se

rvic

e po

tent

ial.

Nor

ther

n H

ealth

ass

esse

s at

eac

h ba

lanc

e sh

eet

date

whe

ther

a fin

anci

al a

sset

or

grou

p of

fin

anci

al a

sset

s is

impa

ired

.All

finan

cial

ass

ets,

exc

ept

thos

e m

easu

red

at fai

r va

lue

thro

ugh

prof

it or

loss

are

sub

ject

to

annu

al r

evie

w for

impa

irm

ent.

Inve

ntor

ies

incl

ude

good

s an

d ot

her

prop

erty

hel

d ei

ther

for

sal

e, c

onsu

mpt

ion

or for

dis

trib

utio

n at

no

or n

omin

al c

ost

in t

he o

rdin

ary

cour

se o

f bu

sine

ss o

pera

tions

. It

exc

lude

s de

prec

iabl

e as

sets

.

Trad

e de

btor

s ar

e ca

rrie

d at

nom

inal

am

ount

s du

e an

d ar

e du

e fo

r se

ttle

men

t w

ithin

30

days

fro

m t

he d

ate

of r

ecog

nitio

n. C

olle

ctab

ility

of de

bts

is r

evie

wed

on

an o

ngoi

ng b

asis

, an

d de

bts

whi

ch a

re k

now

n to

be

unco

llect

ible

are

writt

en o

ff.

A p

rovi

sion

for

dou

btfu

l deb

ts is

rec

ogni

sed

whe

n th

ere

is o

bjec

tive

evid

ence

tha

t th

e de

bts

may

not

be

colle

cted

and

bad

deb

ts a

re w

ritt

en o

ff w

hen

iden

tifie

d.

Rec

eiva

bles

tha

t ar

e co

ntra

ctua

l are

cla

ssifi

ed a

s fin

anci

al in

stru

men

ts a

nd c

ateg

oris

ed a

s lo

ans

and

rece

ivab

les.

Sta

tuto

ry r

ecei

vabl

es a

re r

ecog

nise

d an

d m

easu

red

sim

ilarly

to c

ontr

actu

al r

ecei

vabl

es

(exc

ept

for

impa

irm

ent)

, bu

t ar

e no

t cl

assi

fied

as fin

anci

al in

stru

men

ts b

ecau

se t

hey

do n

ot a

rise

fro

m a

con

trac

t.Rec

eiva

bles

are

rec

ogni

sed

initi

ally

at

fair v

alue

and

sub

sequ

ently

mea

sure

d at

am

ortis

ed c

ost,

usi

ng t

he e

ffec

tive

inte

rest

met

hod,

less

any

acc

umul

ated

impa

irm

ent.

Inve

stm

ents

are

rec

ogni

sed

and

dere

cogn

ised

on

trad

e da

te w

here

pur

chas

e or

sal

e of

an

inve

stm

ent

is u

nder

a c

ontr

act

who

se t

erm

s re

quire

deliv

ery

of t

he in

vest

men

t w

ithin

the

tim

efra

me

esta

blis

hed

by

the

mar

ket

conc

erne

d, a

nd a

re in

itial

ly m

easu

red

at fai

r va

lue,

net

of tr

ansa

ctio

n co

sts.

Loan

s an

d re

ceiv

able

s ar

e fin

anci

al in

stru

men

t as

sets

with

fix

ed a

nd d

eter

min

able

pay

men

ts t

hat

are

not

quot

ed o

n an

act

ive

mar

ket.

The

se a

sset

s ar

e in

itial

ly r

ecog

nise

d at

fai

r va

lue

plus

any

direc

tly

attr

ibut

able

tra

nsac

tion

cost

s. S

ubse

quen

t to

initi

al m

easu

rem

ent,

loan

s an

d re

ceiv

able

s ar

e m

easu

red

at a

mor

tised

cos

t us

ing

the

effe

ctiv

e in

tere

st m

etho

d, le

ss a

ny im

pairm

ent.

Fina

ncia

l ins

trum

ent

liabi

litie

s ar

e in

itial

ly r

ecog

nise

d on

the

dat

e th

ey a

re o

rigi

nate

d. Th

ey a

re in

itial

ly m

easu

red

at fai

r va

lue

plus

any

direc

tly a

ttribu

tabl

e tr

ansa

ctio

n co

sts.

Sub

sequ

ent

to in

itial

re

cogn

ition

, th

ese

finan

cial

inst

rum

ents

are

mea

sure

d at

am

ortis

ed c

ost

with

any

diff

eren

ce b

etw

een

the

initi

al r

ecog

nise

d am

ount

and

the

red

empt

ion

valu

e be

ing

reco

gnis

ed in

pro

fit o

r lo

ss o

ver

the

period

of th

e in

tere

st-b

earing

liab

ility

, us

ing

the

effe

ctiv

e in

tere

st r

ate

met

hod.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

13 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

4 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Pro

per

ty,

pla

nt

and

eq

uip

men

t

Rev

alu

atio

ns

of n

on-c

urr

ent

ph

ysic

al a

sset

s

Inta

ng

ible

ass

ets

Pre

pay

men

ts

Dis

pos

al o

f n

on-f

inan

cial

ass

ets

Imp

airm

ent

of n

on-f

inan

cial

ass

ets

Goo

dwill

and

inta

n gib

le a

sset

s w

ith in

defin

ite li

ves

(and

inta

ngib

le a

sset

s no

t ye

t av

aila

ble

for

use)

are

tes

ted

annu

ally

for

impa

irm

ent

(as

desc

ribe

d be

low

) an

d w

hene

ver

ther

e is

an

indi

catio

n th

at t

he

asse

t m

a y b

e im

paired

.

Inta

ngib

le a

sset

s re

pres

ent

iden

tifia

ble

non-

mon

etar

y as

sets

with

out

phys

ical

sub

stan

ce s

uch

as c

ompu

ter

soft

war

e.

Inta

ngib

le a

sset

s ar

e in

itial

ly r

ecog

nise

d at

cos

t. S

ubse

quen

tly,

inta

ngib

le a

sset

s w

ith fin

ite u

sefu

l liv

es a

re c

arried

at

cost

less

acc

umul

ated

am

ortis

atio

n an

d ac

cum

ulat

ed im

pairm

ent

loss

es.

Cos

ts in

curr

ed

subs

eque

nt t

o in

itial

acq

uisi

tion

are

capi

talis

ed w

hen

it is

exp

ecte

d th

at a

dditi

onal

fut

ure

econ

omic

ben

efits

will

flo

w t

o N

orth

ern

Hea

lth.

Rev

alua

tion

incr

ease

s an

d re

valu

atio

n de

crea

ses

rela

ting

to in

divi

dual

ass

ets

with

in a

n as

set

clas

s ar

e of

fset

aga

inst

one

ano

ther

with

in t

hat

clas

s bu

t ar

e no

t of

fset

in r

espe

ct o

f as

sets

in d

iffer

ent

clas

ses.

Expe

nditu

re o

n re

sear

ch a

ctiv

ities

is r

ecog

nise

d as

an

expe

nse

in t

he p

erio

d on

whi

ch it

is in

curr

ed.

Land

and

bui

ldin

gsar

e re

cogn

ised

initi

ally

at

cost

and

sub

sequ

ently

mea

sure

d at

fai

r va

lue

less

acc

umul

ated

dep

reci

atio

n an

d im

pairm

ent.

Plan

t, e

quip

men

t an

d ve

hicl

es a

re r

ecog

nise

d in

itial

ly a

t co

st a

nd s

ubse

quen

tly m

easu

red

at fai

r va

lue

less

acc

umul

ated

dep

reci

atio

n an

d im

pairm

ent.

D

epre

ciat

ed h

isto

rica

l cos

t is

gen

eral

ly a

rea

sona

ble

prox

y fo

r fa

ir v

alue

bec

ause

of th

e sh

ort

lives

of th

e as

sets

con

cern

ed.

Cul

tura

l Ass

ets

(Art

wor

ks)

ar

e re

cogn

ised

initi

ally

at

cost

and

sub

sequ

ently

mea

sure

d at

fai

r va

lue

less

impa

irm

ent.

All

non-

curr

ent

phys

ical

ass

ets

are

mea

sure

d in

itial

ly a

t co

st a

nd s

ubse

quen

tly r

eval

ued

at fai

r va

lue

less

acc

umul

ated

dep

reci

atio

n an

d im

pairm

ent

loss

. W

here

an

asse

t is

acq

uire

d fo

r no

or

nom

inal

cos

t,

the

cost

is it

s fa

ir v

alue

at

the

date

of ac

quis

ition

. Ass

ets

tran

sfer

red

as p

art

of a

mer

ger/

mac

hine

ry o

f go

vern

men

t ar

e tr

ansf

erre

d at

the

ir c

arry

ing

amou

nt.

Mor

e de

tails

abo

ut t

he v

alua

tion

tech

niqu

es a

nd in

puts

use

d in

det

erm

inin

g th

e fa

ir v

alue

of no

n-fin

anci

al p

hysi

cal a

sset

s ar

e di

scus

sed

in N

ote

10 P

rope

rty,

pla

nt a

nd e

quip

men

t.Cro

wn

land

is m

easu

red

at fai

r va

lue

with

reg

ard

to t

he p

rope

rty’

s hi

ghes

t an

d be

st u

se a

fter

due

con

side

ratio

n is

mad

e fo

r an

y le

gal o

r ph

ysic

al r

estr

ictio

ns im

pose

d on

the

ass

et,

publ

ic a

nnou

ncem

ents

or

com

mitm

ents

mad

e in

rel

atio

n to

the

inte

nded

use

of th

e as

set.

The

oret

ical

opp

ortu

nitie

s th

at m

ay b

e av

aila

ble

in r

elat

ion

to t

he a

sset

(s)

are

not

take

n in

to a

ccou

nt u

ntil

it is

virtu

ally

cer

tain

tha

t an

y re

strict

ions

will

no

long

er a

pply

. Th

eref

ore,

unl

ess

othe

rwis

e di

sclo

sed,

the

cur

rent

use

of th

ese

non-

finan

cial

phy

sica

l ass

ets

will

be

thei

r hi

ghes

t an

d be

st u

ses.

All

othe

r no

n-fin

anci

al a

sset

s ar

e as

sess

ed a

nnua

lly for

indi

catio

ns o

f im

pairm

ent.

Whe

n th

e re

cogn

ition

crite

ria

in A

ASB 1

38 I

ntan

gibl

e Ass

ets a

re m

et,

inte

rnal

ly g

ener

ated

inta

ngib

le a

sset

s ar

e re

cogn

ised

and

mea

sure

d at

cos

t le

ss a

ccum

ulat

ed d

epre

ciat

ion/

amor

tisat

ion

and

impa

irm

ent.

Oth

er n

on-f

inan

cial

ass

ets

incl

ude

prep

aym

ents

whi

ch r

epre

sent

pay

men

ts in

adv

ance

of re

ceip

t of

goo

ds o

r se

rvic

es o

r th

at p

art

of e

xpen

ditu

re m

ade

in o

ne a

ccou

ntin

g pe

riod

cov

erin

g a

term

ext

endi

ng

beyo

nd t

hat

period

.

Any

gai

n or

loss

on

the

sale

of no

n-fin

anci

al a

sset

s is

rec

ogni

sed

in t

he c

ompr

ehen

sive

ope

ratin

g st

atem

ent.

Ref

er t

o N

ote

1(h)

– O

ther

eco

nom

ic flo

ws

incl

uded

in n

et r

esul

ts

Non

-cur

rent

phy

sica

l ass

ets

are

mea

sure

d at

fai

r va

lue

and

are

reva

lued

in a

ccor

danc

e w

ith F

RD

103

F N

on-c

urre

nt p

hysi

cal a

sset

s. Th

is r

eval

uatio

n pr

oces

s no

rmal

ly o

ccur

s at

leas

t ev

ery

five

year

s, b

ased

up

on t

he a

sset

’s G

over

nmen

t Pu

rpos

e Cla

ssifi

catio

n, b

ut m

ay o

ccur

mor

e fr

eque

ntly

if fai

r va

lue

asse

ssm

ents

indi

cate

mat

eria

l cha

nges

in v

alue

s. I

ndep

ende

nt v

alue

rs a

re u

sed

to c

ondu

ct t

hese

sch

edul

ed

reva

luat

ions

and

any

inte

rim

rev

alua

tions

are

det

erm

ined

in a

ccor

danc

e w

ith t

he r

equi

rem

ents

of th

e FR

Ds.

Rev

alua

tion

incr

emen

ts o

r de

crem

ents

arise

fro

m d

iffer

ence

s be

twee

n an

ass

et’s

car

ryin

g va

lue

and

fair v

alue

.

Rev

alua

tion

incr

emen

ts a

re r

ecog

nise

d in

‘oth

er c

ompr

ehen

sive

inco

me’

and

are

cre

dite

d di

rect

ly in

equ

ity t

o th

e as

set

reva

luat

ion

surp

lus,

exc

ept

that

, to

the

ext

ent

that

an

incr

emen

t re

vers

es a

re

valu

atio

n de

crem

ent

in r

espe

ct o

f th

at s

ame

clas

s of

ass

et p

revi

ousl

y re

cogn

ised

as

an e

xpen

se in

net

res

ult,

the

incr

emen

t is

rec

ogni

sed

as in

com

e in

the

net

res

ult.

Rev

alua

tion

decr

emen

ts a

re r

ecog

nise

d in

‘oth

er c

ompr

ehen

sive

inco

me’

to

the

exte

nt t

hat

a cr

edit

bala

nce

exis

ts in

the

ass

et r

eval

uatio

n su

rplu

s in

res

pect

of th

e sa

me

clas

s of

pro

pert

y, p

lant

and

eq

uipm

ent.

Rev

alua

tion

surp

lus

is n

ot n

orm

ally

tra

nsfe

rred

to

accu

mul

ated

fun

ds o

n de

reco

gniti

on o

f th

e re

leva

nt a

sset

.In

acc

orda

nce

with

FRD

103

F, N

orth

ern

Hea

lth’s

non

-cur

rent

phy

sica

l ass

ets

wer

e as

sess

ed t

o de

term

ine

whe

ther

rev

alua

tion

of t

he n

on-c

urre

nt p

hysi

cal a

sset

s w

as r

equi

red.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

14 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

5 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Imp

airm

ent

of f

inan

cial

ass

ets

(k)

Liab

iliti

esP

ayab

les

Paya

bles

con

sist

of:

c

ontr

actu

al p

ayab

les

whi

ch c

onsi

st p

redo

min

antly

of ac

coun

ts p

ayab

le r

epre

sent

ing

liabi

litie

s fo

r go

ods

and

serv

ices

pro

vide

d to

Nor

ther

n H

ealth

prior

to

the

end

of t

he fin

anci

al y

ear

that

are

u

npai

d, a

nd a

rise

whe

n N

orth

ern

Hea

lth b

ecom

es o

blig

ed t

o m

ake

futu

re p

aym

ents

in r

espe

ct o

f th

e pu

rcha

se o

f th

ose

good

s an

d se

rvic

es.

The

nor

mal

cre

dit

term

s fo

r ac

coun

ts p

ayab

le a

re u

sual

ly N

et 4

5 da

ys.

s

tatu

tory

pay

able

s, s

uch

as g

oods

and

ser

vice

s ta

x an

d fr

inge

ben

efits

tax

pay

able

s.

Bor

row

ing

s

Pro

visi

ons

If t

here

is a

n in

dica

tion

of im

pairm

ent,

the

ass

ets

conc

erne

d ar

e te

sted

as

to w

heth

er t

heir c

arry

ing

valu

e ex

ceed

s th

eir

poss

ible

rec

over

able

am

ount

. W

here

an

asse

t’s c

arry

ing

valu

e ex

ceed

s its

re

cove

rabl

e am

ount

, th

e di

ffer

ence

is w

ritt

en-o

ff a

s an

exp

ense

exc

ept

to t

he e

xten

t th

at t

he w

rite

-dow

n ca

n be

deb

ited

to a

n as

set

reva

luat

ion

surp

lus

amou

nt a

pplic

able

to

that

sam

e cl

ass

of a

sset

.

Prov

isio

ns a

re r

ecog

nise

d w

hen

Nor

ther

n H

ealth

has

a p

rese

nt o

blig

atio

n, t

he fut

ure

sacr

ifice

of ec

onom

ic b

enef

its is

pro

babl

e, a

nd t

he a

mou

nt o

f th

e pr

ovis

ion

can

be m

easu

red

relia

bly.

The

amou

nt r

ecog

nise

d as

a li

abili

ty is

the

bes

t es

timat

e of

the

con

side

ratio

n re

quired

to

sett

le t

he p

rese

nt o

blig

atio

n at

rep

ortin

g da

te,

taki

ng in

to a

ccou

nt t

he r

isks

and

unc

erta

intie

s su

rrou

ndin

g th

e ob

ligat

ion.

Whe

re a

pro

visi

on is

mea

sure

d us

ing

the

cash

flo

ws

estim

ated

to

sett

le t

he p

rese

nt o

blig

atio

n, it

s ca

rryi

ng a

mou

nt is

the

pre

sent

val

ue o

f th

ose

cash

flo

ws,

usi

ng a

dis

coun

t ra

te t

hat

refle

cts

the

time

valu

e of

mon

ey a

nd r

isks

spe

cific

to

the

prov

isio

n.

Whe

n so

me

or a

ll of

the

eco

nom

ic b

enef

its r

equi

red

to s

ettle

a p

rovi

sion

are

exp

ecte

d to

be

rece

ived

fro

m a

thi

rd p

arty

, th

e re

ceiv

able

is r

ecog

nise

d as

an

asse

t if

it is

virtu

ally

cer

tain

tha

t re

cove

ry w

ill b

e re

ceiv

ed a

nd t

he a

mou

nt o

f th

e re

ceiv

able

can

be

mea

sure

d re

liabl

y.

All

borr

owin

gs a

re in

itial

ly r

ecog

nise

d at

fai

r va

lue

of t

he c

onsi

dera

tion

rece

ived

, le

ss d

irec

tly a

ttribu

tabl

e tr

ansa

ctio

n co

sts

(ref

er a

lso

to N

ote

1(l)

Lea

ses)

. Th

e m

easu

rem

ent

basi

s su

bseq

uent

to

initi

al

reco

gniti

on d

epen

ds o

n w

heth

er t

he H

ealth

Ser

vice

has

cat

egor

ised

its

borr

owin

gs a

s ei

ther

, fin

anci

al li

abili

ties

desi

gnat

ed a

t fa

ir v

alue

thr

ough

pro

fit o

r lo

ss,

or fin

anci

al li

abili

ties

at a

mor

tised

cos

t. A

ny

differ

ence

bet

wee

n th

e in

itial

rec

ogni

sed

amou

nt a

nd t

he r

edem

ptio

n va

lue

is r

ecog

nise

d in

net

res

ult

over

the

per

iod

of t

he b

orro

win

gs u

sing

the

effec

tive

inte

rest

met

hod.

The

clas

sific

atio

n de

pend

s on

the

nat

ure

and

purp

ose

of t

he b

orro

win

g. T

he H

ealth

Ser

vice

det

erm

ines

the

cla

ssifi

catio

n of

its

borr

owin

g at

initi

al r

ecog

nitio

n.

If t

here

is a

n in

dica

tion

that

the

re h

as b

een

a re

vers

al in

the

est

imat

e of

an

asse

t’s r

ecov

erab

le a

mou

nt s

ince

the

last

impa

irm

ent

loss

was

rec

ogni

sed,

the

car

ryin

g am

ount

sha

ll be

incr

ease

d to

its

reco

vera

ble

amou

nt.

This

rev

ersa

l of th

e im

pairm

ent

loss

occ

urs

only

to

the

exte

nt t

hat

the

asse

t’s c

arry

ing

amou

nt d

oes

not

exce

ed t

he c

arry

ing

amou

nt t

hat

wou

ld h

ave

been

det

erm

ined

, ne

t of

de

prec

iatio

n or

am

ortis

atio

n, if

no

impa

irm

ent

loss

had

bee

n re

cogn

ised

in p

rior

yea

rs.

It is

dee

med

tha

t, in

the

eve

nt o

f th

e lo

ss o

r de

stru

ctio

n of

an

asse

t, t

he fut

ure

econ

omic

ben

efits

arisi

ng fro

m t

he u

se o

f th

e as

set

will

be

repl

aced

unl

ess

a sp

ecifi

c de

cisi

on t

o th

e co

ntra

ry h

as b

een

mad

e.

The

reco

vera

ble

amou

nt for

mos

t as

sets

is m

easu

red

at t

he h

ighe

r of

dep

reci

ated

rep

lace

men

t co

st a

nd fai

r va

lue

less

cos

ts t

o se

ll. R

ecov

erab

le a

mou

nt for

ass

ets

held

prim

arily

to

gene

rate

net

cas

h in

flow

s is

mea

sure

d at

the

hig

her

of t

he p

rese

nt v

alue

of fu

ture

cas

h flo

ws

expe

cted

to

be o

btai

ned

from

the

ass

et a

nd fai

r va

lue

less

cos

ts o

f di

spos

al.

The

amou

nt o

f th

e al

low

ance

is t

he d

iffer

ence

bet

wee

n th

e fin

anci

al a

sset

’s c

arry

ing

amou

nt a

nd t

he p

rese

nt v

alue

of es

timat

ed fut

ure

cash

flo

ws,

dis

coun

ted

at t

he e

ffec

tive

inte

rest

rat

e.

At

the

end

of e

ach

repo

rtin

g pe

riod

Nor

ther

n H

ealth

ass

esse

s w

heth

er t

here

is o

bjec

tive

evid

ence

tha

t a

finan

cial

ass

et o

r gr

oup

of fin

anci

al a

sset

is im

paired

. All

finan

cial

inst

rum

ent

asse

ts,

exce

pt t

hose

m

easu

red

at fai

r va

lue

thro

ugh

prof

it or

loss

, ar

e su

bjec

t to

ann

ual r

evie

w for

impa

irm

ent.

Rec

eiva

bles

are

ass

esse

d fo

r ba

d an

d do

ubtf

ul d

ebts

on

a re

gula

r ba

sis.

Bad

deb

ts c

onsi

dere

d as

writt

en o

ff a

nd a

llow

ance

s fo

r do

ubtf

ul r

ecei

vabl

es a

re e

xpen

sed.

Con

trac

tual

pay

able

s ar

e cl

assi

fied

as fin

anci

al in

stru

men

ts a

nd a

re in

itial

ly r

ecog

nise

d at

fai

r va

lue,

and

the

n su

bseq

uent

ly c

arried

at

amor

tised

cos

t. S

tatu

tory

pay

able

s ar

e re

cogn

ised

and

mea

sure

d si

mila

rly

to c

ontr

actu

al p

ayab

les,

but

are

not

cla

ssifi

ed a

s fin

anci

al in

stru

men

ts a

nd n

ot in

clud

ed in

the

cat

egor

y of

fin

anci

al li

abili

ties

at a

mor

tised

cos

t, b

ecau

se t

hey

do n

ot a

rise

fro

m a

con

trac

t.

In a

sses

sing

impa

irm

ent

of s

tatu

tory

(no

n-co

ntra

ctua

l) fin

anci

al a

sset

s, w

hich

are

not

fin

anci

al in

stru

men

ts,

prof

essi

onal

jud

gem

ent

is a

pplie

d in

ass

essi

ng m

ater

ialit

y us

ing

estim

ates

, av

erag

es a

nd o

ther

co

mpu

tatio

nal m

etho

ds in

acc

orda

nce

with

AASB 1

36 I

mpa

irm

ent

of A

sset

s.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

15 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

4 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

6 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Emp

loye

e b

enef

its

Wag

es a

nd s

alar

ies,

ann

ual l

eave

and

acc

rued

day

s of

f

Dep

endi

ng o

n th

e ex

pect

atio

n of

the

tim

ing

of s

ettle

men

t, li

abili

ties

for

wag

es a

nd s

alar

ies,

ann

ual l

eave

and

acc

rued

day

s of

f ar

e m

easu

red

at:

un

disc

ount

ed v

alue

– if

the

hea

lth s

ervi

ce e

xpec

ts t

o w

holly

set

tle w

ithin

12

mon

ths;

or

pr

esen

t va

lue

– if

the

heal

th s

ervi

ce d

oes

not

expe

ct t

o w

holly

set

tle w

ithin

12

mon

ths.

Long

ser

vice

leav

e (L

SL)

Liab

ility

for

LSL

is r

ecog

nise

d in

the

pro

visi

on for

em

ploy

ee b

enef

its.

The

com

pone

nts

of t

his

curr

ent

LSL

liabi

lity

are

mea

sure

d at

:

undi

scou

nted

val

ue –

if N

orth

ern

Hea

lth e

xpec

ts t

o w

holly

set

tle w

ithin

12

mon

ths;

and

pr

esen

t va

lue

– if

Nor

ther

n H

ealth

doe

s no

t ex

pect

to

who

lly s

ettle

with

in 1

2 m

onth

s.

Term

inat

ion

bene

fits

On

-cos

ts r

elat

ed t

o em

plo

yee

exp

ense

Su

per

ann

uat

ion

liab

iliti

es

(l)

Leas

es

Fin

ance

leas

esEn

tity

as le

ssor

Op

erat

ing

leas

es

Entit

y as

less

or

Term

inat

ion

bene

fits

are

paya

ble

whe

n em

ploy

men

t is

ter

min

ated

bef

ore

the

norm

al r

etirem

ent

date

or

whe

n an

em

ploy

ee d

ecid

es t

o ac

cept

an

offe

r of

ben

efits

in e

xcha

nge

for

the

term

inat

ion

of

empl

oym

ent.

Nor

ther

n H

ealth

rec

o gni

ses

term

inat

ion

bene

fits

whe

n it

is d

emon

stra

bly

com

mitt

ed t

o ei

ther

ter

min

atin

g th

e em

ploy

men

t of

cur

rent

em

ploy

ees

acco

rdin

g to

a d

etai

led

form

al p

lan

with

out

poss

ibili

ty o

f w

ithdr

awal

or

prov

idin

g te

rmin

atio

n be

nefit

s as

a r

esul

t of

an

offe

r m

ade

to e

ncou

rage

vol

unta

ry r

edun

danc

y. B

enef

its fal

ling

due

mor

e th

an 1

2 m

onth

s af

ter

the

end

of t

he r

epor

ting

period

are

dis

coun

ted

to p

rese

nt v

alue

.

Leas

es o

f pr

oper

ty,

plan

t an

d eq

uipm

ent

are

clas

sifie

d as

fin

ance

leas

es w

hene

ver

the

term

s of

the

leas

e tr

ansf

er s

ubst

antia

lly a

ll th

e risk

s an

d re

war

ds o

f ow

ners

hip

to t

he le

ssee

.

This

pro

visi

on a

rise

s fo

r be

nefit

s ac

crui

ng t

o em

ploy

ees

in r

espe

ct o

f w

ages

and

sal

arie

s, a

nnua

l lea

ve a

nd lo

ng s

ervi

ce le

ave

for

serv

ices

ren

dere

d to

the

rep

ortin

g da

te.

Liab

ilitie

s fo

r w

a ges

and

sal

arie

s, a

nnua

l lea

ve a

nd a

ccru

ed d

ays

off ar

e al

l rec

ogni

sed

in t

he p

rovi

sion

for

em

ploy

ee b

enef

its a

s ‘c

urre

nt li

abili

ties’

, be

caus

e th

e he

alth

ser

vice

doe

s no

t ha

ve a

n un

cond

ition

al

righ

t to

def

er s

ettle

men

ts o

f th

ese

liabi

litie

s.

Unc

ondi

tiona

l LSL

is d

iscl

osed

in t

he n

otes

to

the

finan

cial

sta

tem

ents

as

a cu

rren

t lia

bilit

y, e

ven

whe

re N

orth

ern

Hea

lth d

oes

not

expe

ct t

o se

ttle

the

liab

ility

with

in 1

2 m

onth

s be

caus

e it

will

not

hav

e th

e un

cond

ition

al r

ight

to

defe

r th

e se

ttle

men

t of

the

ent

itlem

ent

shou

ld a

n em

ploy

ee t

ake

leav

e w

ithin

12

mon

ths.

Con

ditio

nal L

SL

is d

iscl

osed

as

a no

n-cu

rren

t lia

bilit

y. T

here

is a

n un

cond

ition

al r

ight

to

defe

r th

e se

ttle

men

t of

the

ent

itlem

ent

until

the

em

ploy

ee h

as c

ompl

eted

the

req

uisi

te y

ears

of se

rvic

e. T

his

non-

curr

ent

LSL

liabi

lity

is m

easu

red

at p

rese

nt v

alue

.

Prov

isio

ns for

on-

cost

s, s

uch

as w

orke

rs c

ompe

nsat

ion

and

supe

rann

uatio

n ar

e re

cogn

ised

tog

ethe

r w

ith p

rovi

sion

s fo

r em

ploy

ee b

enef

its.

Nor

ther

n H

ealth

doe

s no

t re

cogn

ise

any

unfu

nded

def

ined

ben

efit

liabi

lity

in r

espe

ct o

f th

e su

pera

nnua

tion

plan

s be

caus

e th

e en

tity

has

no le

gal o

r co

nstr

uctiv

e ob

ligat

ion

to p

ay fut

ure

bene

fits

rela

ting

to

its e

mpl

oyee

s; it

s on

ly o

blig

atio

n is

to

pay

supe

rann

uatio

n co

ntribu

tions

as

they

fal

l due

. Th

e D

epar

tmen

t of

Tre

asur

y an

d Fi

nanc

e ad

min

iste

rs a

nd d

iscl

oses

the

Sta

te’s

def

ined

ben

efit

liabi

litie

s in

its

finan

cial

rep

ort.

All

othe

r le

ases

are

cla

ssifi

ed a

s op

erat

ing

leas

es.

Nor

ther

n H

ealth

doe

s no

t ho

ld a

ny fin

ance

leas

e ar

rang

emen

ts w

ith o

ther

par

ties.

A le

ase

is a

rig

ht t

o us

e an

ass

et for

an

agre

ed p

erio

d of

tim

e in

exc

hang

e fo

r pa

ymen

t. L

ease

s ar

e cl

assi

fied

at t

heir in

cept

ion

as e

ither

ope

ratin

g or

fin

ance

leas

es b

ased

on

the

econ

omic

sub

stan

ce o

f th

e ag

reem

ent

so a

s to

ref

lect

the

ris

ks a

nd r

ewar

ds in

cide

ntal

to

owne

rshi

p.

For

serv

ice

conc

essi

on a

rran

gem

ents

, th

e co

mm

ence

men

t of

the

leas

e te

rm is

dee

med

to

be t

he d

ate

the

asse

t is

com

mis

sion

ed.

Ren

tal i

ncom

e fr

om o

pera

ting

leas

e is

rec

ogni

sed

on a

str

aigh

t-lin

e ba

sis

over

the

ter

m o

f th

e re

leva

nt le

ase.

An y

gai

n or

loss

fol

low

ed r

eval

uatio

n of

the

pre

sent

val

ue o

f no

n-cu

rren

t LS

L lia

bilit

y is

rec

ogni

sed

as a

tra

nsac

tion,

exc

ept

to t

he e

xten

t th

at a

gai

n or

loss

arise

s du

e to

cha

nges

in b

ond

inte

rest

rat

es for

w

hich

it is

the

n re

cogn

ised

as

an o

ther

eco

nom

ic flo

w.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

16 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

7 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

Entit

y as

less

ee

Leas

e In

cent

ives

Leas

ehol

d Im

prov

emen

ts

(m)

Equ

ity

Con

trib

ute

d c

apit

al

Pro

per

ty,

pla

nt

and

eq

uip

men

t re

valu

atio

n s

urp

lus

Sp

ecif

ic r

estr

icte

d p

urp

ose

surp

lus

(n)

Com

mit

men

ts

(o)

Con

tin

gen

t as

sets

an

d c

onti

ng

ent

liab

iliti

esCon

tinge

nt a

sset

s an

d co

ntin

gent

liab

ilitie

s ar

e no

t re

cogn

ised

in t

he b

alan

ce s

heet

, bu

t ar

e di

sclo

sed

by w

ay o

f no

te (

refe

r to

Not

e 21

) an

d, if

qua

ntifi

able

, ar

e m

easu

red

at n

omin

al v

alue

. Con

tinge

nt

asse

ts a

nd c

ontin

gent

liab

ilitie

s ar

e pr

esen

ted

incl

usiv

e of

GST

rece

ivab

le o

r pa

yabl

e re

spec

tivel

y.

A s

peci

fic r

estr

icte

d pu

rpos

e su

rplu

s is

est

ablis

hed

whe

re N

orth

ern

Hea

lth h

as p

osse

ssio

n or

titl

e to

the

fun

ds b

ut h

as n

o di

scre

tion

to a

men

d or

var

y th

e re

strict

ion

and/

or c

ondi

tion

unde

rlyi

ng t

he fun

ds

rece

ived

.

The

asse

t re

valu

atio

n su

rplu

s is

use

d to

rec

ord

incr

emen

ts a

nd d

ecre

men

ts o

n th

e re

valu

atio

n of

non

-cur

rent

phy

sica

l ass

ets.

Tran

sfer

s of

net

ass

ets

aris

ing

from

adm

inis

trat

ive

rest

ruct

urin

gs a

re t

reat

ed a

s co

ntribu

tions

by

owne

rs.

Tran

sfer

s of

net

liab

ilitie

s ar

isin

g fr

om a

dmin

istr

ativ

e re

stru

ctur

es a

re t

o go

thr

ough

the

co

mpr

ehen

sive

ope

ratin

g st

atem

ent.

Com

mitm

ents

for

fut

ure

expe

nditu

re in

clud

e op

erat

ing

and

capi

tal c

omm

itmen

ts a

risi

ng fro

m c

ontr

acts

are

not

rec

ogni

sed

in t

he b

alan

ce s

heet

. Th

ese

com

mitm

ents

are

dis

clos

ed b

y w

ay o

f a

note

(re

fer

to

Not

e 20

) at

the

ir n

omin

al v

alue

and

are

incl

usiv

e of

the

GST

paya

ble.

In

addi

tion,

whe

re it

is c

onsi

dere

d ap

prop

riat

e an

d pr

ovid

es a

dditi

onal

rel

evan

t in

form

atio

n to

use

rs,

the

net

pres

ent

valu

es o

f si

gnifi

cant

indi

vidu

al p

roje

cts

are

stat

ed.

Thes

e fu

ture

exp

endi

ture

s ce

ase

to b

e di

sclo

sed

as c

omm

itmen

ts o

nce

the

rela

ted

liabi

litie

s ar

e re

cogn

ised

on

the

bala

nce

shee

t.

All

ince

ntiv

es for

the

agr

eem

ent

of a

new

or

rene

wed

ope

ratin

g le

ase

are

reco

gnis

ed a

s an

inte

gral

par

t of

the

net

con

side

ratio

n ag

reed

for

the

use

of th

e le

ased

ass

et,

irre

spec

tive

of t

he in

cent

ive’

s na

ture

or

for

m o

r th

e tim

ing

of p

aym

ents

.

In t

he e

vent

tha

t le

ase

ince

ntiv

es a

re r

ecei

ved

by t

he le

ssee

to

ente

r in

to o

pera

ting

leas

es,

such

ince

ntiv

es a

re r

ecog

nise

d as

a li

abili

ty.

The

agg

rega

te b

enef

its o

f in

cent

ives

are

rec

ogni

sed

as a

red

uctio

n of

ren

tal e

xpen

se o

n a

stra

ight

-lin

e ba

sis,

exc

ept

whe

re a

noth

er s

yste

mat

ic b

asis

is m

ore

repr

esen

tativ

e of

the

tim

e pa

tter

n in

whi

ch e

cono

mic

ben

efits

fro

m t

he le

ased

ass

et is

dim

inis

hed.

The

cost

of le

aseh

old

impr

ovem

ents

are

cap

italis

ed a

s an

ass

et a

nd d

epre

ciat

ed o

ver

the

rem

aini

ng t

erm

of th

e le

ase

or t

he e

stim

ated

use

ful l

ife o

f th

e im

prov

emen

ts,

whi

chev

er is

the

sho

rter

.

Con

sist

ent

with

Aus

tral

ian

Acc

ount

ing

Inte

rpre

tatio

n 10

38 C

ontr

ibut

ions

by

Ow

ners

Mad

e to

Who

lly-O

wne

d Pu

blic

Sec

tor

Entities

and

FRD

119

A C

ontr

ibut

ions

by

Ow

ners

, ap

prop

riat

ions

for

add

ition

s to

the

ne

t as

set

base

hav

e be

en d

esig

nate

d as

con

trib

uted

cap

ital.

Oth

er t

rans

fers

tha

t ar

e in

the

nat

ure

of c

ontr

ibut

ions

to

or d

istr

ibut

ions

by

owne

rs t

hat

have

bee

n de

sign

ated

as

cont

ribu

ted

capi

tal a

re a

lso

trea

ted

as c

ontr

ibut

ed c

apita

l.

In t

he e

vent

tha

t le

ase

ince

ntiv

es a

re g

iven

to

the

less

ee,

the

aggr

egat

e co

st o

f in

cent

ives

are

rec

ogni

sed

as a

red

uctio

n of

ren

tal i

ncom

e ov

er t

he le

ase

term

, on

a s

trai

ght-

line

basi

s un

less

ano

ther

sy

stem

atic

bas

is is

mor

e ap

prop

riat

e of

the

tim

e pa

tter

n ov

er w

hich

the

eco

nom

ic b

enef

it of

the

leas

ed a

sset

is d

imin

ishe

d.

All

ince

ntiv

es for

the

agr

eem

ent

of a

new

or

rene

wed

ope

ratin

g le

ase

are

reco

gnis

ed a

s an

inte

gral

par

t of

the

net

con

side

ratio

n ag

reed

for

the

use

of th

e le

ased

ass

et,

irre

spec

tive

of t

he in

cent

ive’

s na

ture

or

for

m o

r th

e tim

ing

of p

aym

ents

.

Ope

ratin

g le

ase

paym

ents

, in

clud

ing

any

cont

inge

nt r

enta

ls,

are

reco

gnis

ed a

s an

exp

ense

in t

he c

ompr

ehen

sive

ope

ratin

g st

atem

ent

on a

str

aigh

t lin

e ba

sis

over

the

leas

e te

rm,

exce

pt w

here

ano

ther

sy

stem

atic

bas

is is

mor

e re

pres

enta

tive

of t

he t

ime

patt

ern

of t

he b

enef

its d

eriv

ed fro

m t

he u

se o

f th

e le

ased

ass

et.

The

leas

ed a

sset

is n

ot r

ecog

nise

d in

the

bal

ance

she

et.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

17 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

6 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

8 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

(p)

Goo

ds

and

Ser

vice

s Ta

x (G

ST)

(q)

Fore

ign

cu

rren

cy

(r)

Even

ts a

fter

th

e re

por

tin

g p

erio

d

All

fore

ign

curr

ency

tra

nsac

tions

dur

ing

the

finan

cial

yea

r ar

e br

ough

t to

acc

ount

usi

ng t

he e

xcha

nge

rate

in e

ffec

t at

the

dat

e of

the

tra

nsac

tion.

For

eign

mon

etar

y ite

ms

exis

ting

at t

he e

nd o

f th

e re

port

ing

period

are

tra

nsla

ted

at t

he c

losi

ng r

ate

at t

he d

ate

of t

he e

nd o

f th

e re

port

ing

period

.

Ass

ets,

liab

ilitie

s, in

com

e or

exp

ense

s ar

ise

from

pas

t tr

ansa

ctio

ns o

r ot

her

past

eve

nts.

Whe

re t

he t

rans

actio

ns r

esul

t fr

om a

n ag

reem

ent

betw

een

Nor

ther

n H

ealth

and

oth

er p

artie

s, t

he t

rans

actio

ns a

re

only

rec

ogni

sed

whe

n th

e ag

reem

ent

is ir

revo

cabl

e at

or

befo

re t

he e

nd o

f th

e re

port

ing

period

.

Ad j

ustm

ents

are

mad

e to

am

ount

s re

cogn

ised

in t

he fin

anci

al s

tate

men

ts for

eve

nts

whi

ch o

ccur

bet

wee

n th

e en

d of

the

rep

ortin

g pe

riod

and

the

dat

e w

hen

the

finan

cial

sta

tem

ents

are

aut

horise

d fo

r is

sue,

w

here

tho

se e

vent

s pr

ovid

e in

form

atio

n ab

out

cond

ition

s w

hich

exi

sted

at

the

repo

rtin

g da

te.

Not

e di

sclo

sure

is m

ade

abou

t ev

ents

bet

wee

n th

e en

d of

the

rep

ortin

g pe

riod

and

the

dat

e th

e fin

anci

al

stat

emen

ts a

re a

utho

rise

d fo

r is

sue

whe

re t

he e

vent

s re

late

to

cond

ition

s w

hich

aro

se a

fter

the

end

of th

e re

port

ing

period

tha

t ar

e co

nsid

ered

to

be o

f m

ater

ial i

nter

est.

Inco

me,

exp

ense

s an

d as

sets

are

rec

ogni

sed

net

of t

he a

mou

nt o

f as

soci

ated

GST,

unl

ess

the

GST

incu

rred

is n

ot r

ecov

erab

le fro

m t

he t

axat

ion

auth

ority

. In

thi

s ca

se,

the

GST

paya

ble

is r

ecog

nise

d as

par

t of

the

cos

t of

acq

uisi

tion

of t

he a

sset

or

as p

art

of t

he e

xpen

se.

Rec

eiva

bles

and

pay

able

s ar

e st

ated

incl

usiv

e of

the

am

ount

of G

ST

rece

ivab

le o

r pa

yabl

e. T

he n

et a

mou

nt o

f G

ST

reco

vera

ble

from

, or

pay

able

to,

the

tax

atio

n au

thor

ity is

incl

uded

with

oth

er r

ecei

vabl

es

or p

ayab

les

in t

he b

alan

ce s

heet

.

In t

erm

s of

cas

h flo

w t

he G

ST

com

pone

nts

of c

ash

flow

s ar

isin

g fr

om a

ctiv

ities

whi

ch a

re r

ecov

erab

le fro

m,

or p

ayab

le t

o th

e ta

xatio

n au

thor

ity,

are

pres

ente

d as

an

oper

atin

g ca

sh flo

w.

Com

mitm

ents

for

exp

endi

ture

and

con

tinge

nt a

sset

s an

d lia

bilit

ies

are

pres

ente

d on

a g

ross

bas

is.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

18 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

9 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

(s)

AA

Ss

issu

ed t

hat

are

not

yet

eff

ecti

ve

Sta

nd

ard

/In

terp

reta

tion

Su

mm

ary

Ap

plic

able

for

an

nu

al r

epor

tin

g

per

iod

s b

egin

nin

g o

nIm

pac

t on

pu

blic

sec

tor

enti

ty f

inan

cial

st

atem

ents

AASB 9

Fin

anci

al I

nstr

umen

ts

1-Ja

n-18

The

asse

ssm

ent

has

iden

tifie

d th

at t

he fin

anci

al

impa

ct o

f av

aila

ble

for

sale

(AFS

) as

sets

will

now

be

repo

rted

thr

ough

oth

er c

ompr

ehen

sive

inco

me

(OCI)

an

d no

long

er r

ecyc

led

to t

he p

rofit

and

loss

.

Whi

le t

he p

relim

inar

y as

sess

men

t ha

s no

t id

entif

ied

any

mat

eria

l im

pact

arisi

ng fro

m A

ASB 9

, it

will

co

ntin

ue t

o be

mon

itore

d an

d as

sess

ed.

AASB 2

010-

7 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds a

risi

ng fro

m A

ASB 9

(D

ecem

ber

2010

)

The

requ

irem

ents

for

cla

ssify

ing

and

mea

suring

fin

anci

al li

abili

ties

wer

e ad

ded

to A

ASB 9

. Th

e ex

istin

g re

quirem

ents

for

the

cla

ssifi

catio

n of

fin

anci

al li

abili

ties

and

the

abili

ty t

o us

e th

e fa

ir

valu

e op

tion

have

bee

n re

tain

ed.

How

ever

, w

here

th

e fa

ir v

alue

opt

ion

is u

sed

for

finan

cial

liab

ilitie

s th

e ch

ange

in fai

r va

lue

is a

ccou

nted

for

as

follo

ws:

1-Ja

n-18

The

asse

ssm

ent

has

iden

tifie

d th

at t

he a

men

dmen

ts

are

likel

y to

res

ult

in e

arlie

r re

cogn

ition

of

impa

irm

ent

loss

es a

nd a

t m

ore

regu

lar

inte

rval

s.

· T

he c

han g

e in

fai

r va

lue

attr

ibut

able

to

chan

ges

in c

redi

t risk

is p

rese

nted

in o

ther

com

preh

ensi

ve

inco

me

(OCI)

; an

d

Cha

nges

in o

wn

cred

it risk

in r

espe

ct o

f lia

bilit

ies

desi

gnat

ed a

t fa

ir v

alue

thr

ough

pro

fit a

nd lo

ss w

ill

now

be

pres

ente

d w

ithin

oth

er c

ompr

ehen

sive

in

com

e (O

CI)

. ·

O

ther

fai

r va

lue

chan

ges

are

pres

ente

d in

pro

fit

and

loss

. If

thi

s ap

proa

ch c

reat

es o

r en

larg

es a

n ac

coun

ting

mis

mat

ch in

the

pro

fit o

r lo

ss,

the

effe

ct

of t

he c

hang

es in

cre

dit

risk

are

als

o pr

esen

ted

in

prof

it or

loss

.

For

entit

ies

with

sig

nific

ant

lend

ing

activ

ities

, an

ov

erha

ul o

f re

late

d sy

stem

s an

d pr

oces

ses

may

be

need

ed.

AASB 2

014-

5 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds a

risi

ng fro

m A

ASB 1

5Am

ends

the

mea

sure

men

t of

tra

de r

ecei

vabl

es a

nd

the

reco

gniti

on o

f di

vide

nds.

1 Ja

n 20

17,

exce

pt a

men

dmen

ts t

o AASB 9

(D

ec 2

009)

and

AASB 9

(D

ec

2010

) ap

ply

from

1 J

an 2

018

The

asse

ssm

ent

has

indi

cate

d th

at t

here

will

be

no

sign

ifica

nt im

pact

for

the

pub

lic s

ecto

r.

Trad

e re

ceiv

able

s, t

hat

do n

ot h

ave

a si

gnifi

cant

fin

anci

ng c

ompo

nent

, ar

e to

be

mea

sure

d at

the

ir

tran

sact

ion

pric

e, a

t in

itial

rec

ogni

tion.

D

ivid

ends

are

rec

o gni

sed

in t

he p

rofit

and

loss

onl

y w

hen:

· t

he e

ntity

’s r

ight

to

rece

ive

paym

ent

of t

he

divi

dend

is e

stab

lishe

d;

· it

is p

roba

ble

that

the

eco

nom

ic b

enef

its

asso

ciat

ed w

ith t

he d

ivid

end

will

flo

w t

o th

e en

tity;

an

d ·

t

he a

mou

nt c

an b

e m

easu

red

relia

bly.

As

at 3

0 Ju

ne 2

016

the

follo

win

g st

anda

rds

and

inte

rpre

tatio

ns h

ad b

een

issu

ed b

y th

e AASB b

ut w

ere

not

yet

effe

ctiv

e. Th

ey b

ecom

e ef

fect

ive

for

the

first

fin

anci

al s

tate

men

ts for

rep

ortin

g pe

riod

s co

mm

enci

ng a

fter

the

sta

ted

oper

ativ

e da

tes

as d

etai

led

in t

he t

able

bel

ow.

Nor

ther

n H

ealth

has

not

ad

opte

d th

ese

stan

dard

s in

the

pre

para

tion

of t

he 2

015/

16 F

inan

cial

Acc

ount

s.

Cer

tain

new

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds (

AASs)

hav

e be

en p

ublis

hed

that

are

not

man

dato

ry for

the

30

June

201

6 re

port

ing

period

. T

he D

epar

tmen

t of

Tre

asur

y an

d Fi

nanc

e as

sess

es t

he im

pact

of al

l th

ese

new

sta

ndar

ds a

nd a

dvis

es H

ealth

Ser

vice

s in

clud

ing

Nor

ther

n H

ealth

of th

eir

appl

icab

ility

and

ear

ly a

dopt

ion

whe

re a

pplic

able

.

The

key

chan

ges

incl

ude

the

sim

plifi

ed r

equi

rem

ents

fo

r th

e cl

assi

ficat

ion

and

mea

sure

men

t of

fin

anci

al

asse

ts,

a ne

w h

edgi

ng a

ccou

ntin

g m

odel

and

a

revi

sed

impa

irm

ent

loss

mod

el t

o re

cogn

ise

impa

irm

ent

loss

es e

arlie

r, a

s op

pose

d to

the

cur

rent

ap

proa

ch t

hat

reco

gnis

es im

pairm

ent

only

whe

n in

curr

ed.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

19 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 1

8 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

0 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

AASB 2

015-

8 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Effec

tive

Dat

e of

AASB 1

5Th

is S

tand

ard

defe

rs t

he m

anda

tory

effec

tive

date

of

AASB 1

5 fr

om 1

Jan

uary

201

7 to

1 J

anua

ry 2

018.

1-Ja

n-18

This

am

endi

ng s

tand

ard

will

def

er t

he a

pplic

atio

n pe

riod

of AASB 1

5 to

the

201

8-19

rep

ortin

g pe

riod

in

acco

rdan

ce w

ith t

he t

rans

ition

req

uire

men

ts.

AASB 2

016-

3 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Cla

rific

atio

ns t

o AASB 1

5

This

Sta

ndar

d am

ends

AASB 1

5 to

cla

rify

the

re

quirem

ents

on

iden

tifyi

ng p

erfo

rman

ce

oblig

atio

ns,

prin

cipa

l ver

sus

agen

t co

nsid

erat

ions

an

d th

e tim

ing

of r

ecog

nisi

ng r

even

ue fro

m g

rant

ing

a lic

ence

. T

he a

men

dmen

ts r

equi

re:

1-Ja

n-18

The

asse

ssm

ent

has

indi

cate

d th

at t

here

will

be

no

sign

ifica

nt im

pact

for

the

pub

lic s

ecto

r, o

ther

tha

n th

e im

pact

iden

tifie

d in

AASB 1

5.

· A

pro

mis

e to

tra

nsfe

r to

a c

usto

mer

a g

ood

or

serv

ice

that

is ‘d

istin

ct’ t

o be

rec

ogni

sed

as a

se

para

te p

erfo

rman

ce o

blig

atio

n;

· F

or it

ems

purc

hase

d on

line,

the

ent

ity is

a

prin

cipa

l if it

obta

ins

cont

rol o

f th

e go

od o

r se

rvic

e pr

ior

to t

rans

ferr

ing

to t

he c

usto

mer

; an

d

· F

or li

cenc

es id

entif

ied

as b

eing

dis

tinct

fro

m

othe

r go

ods

or s

ervi

ces

in a

con

trac

t, e

ntiti

es n

eed

to d

eter

min

e w

heth

er t

he li

cenc

e tr

ansf

ers

to t

he

cust

omer

ove

r tim

e (r

ight

to

use)

or

at a

poi

nt in

tim

e (r

ight

to

acce

ss).

AASB 1

6 Le

ases

The

key

chan

ges

intr

oduc

ed b

y AASB 1

6 in

clud

e th

e re

cogn

ition

of m

ost

oper

atin

g le

ases

(w

hich

are

cu

rren

t no

t re

cogn

ised

) on

bal

ance

she

et.

1-Ja

n-19

The

asse

ssm

ent

has

indi

cate

d th

at a

s m

ost

oper

atin

g le

ases

will

com

e on

bal

ance

she

et,

reco

gniti

on o

f le

ase

asse

ts a

nd le

ase

liabi

litie

s w

ill c

ause

net

deb

t to

incr

ease

.

Dep

reci

atio

n of

leas

e as

sets

and

inte

rest

on

leas

e lia

bilit

ies

will

be

reco

gnis

ed in

the

inco

me

stat

emen

t w

ith m

argi

nal i

mpa

ct o

n th

e op

erat

ing

surp

lus.

The

amou

nts

of c

ash

paid

for

the

princ

ipal

por

tion

of

the

leas

e lia

bilit

y w

ill b

e pr

esen

ted

with

in fin

anci

ng

activ

ities

and

the

am

ount

s pa

id for

the

inte

rest

po

rtio

n w

ill b

e pr

esen

ted

with

in o

pera

ting

activ

ities

i

h

h

fl

No

chan

ge for

less

ors.

AASB 2

014 ‑

10 A

men

dmen

ts t

o Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Sal

e or

Con

trib

utio

n of

Ass

ets

betw

een

an

Inve

stor

and

its

Ass

ocia

te o

r Jo

int

Ven

ture

[AASB 1

0 &

AASB 1

28]

AASB 2

014-

10 a

men

ds A

ASB 1

0 Con

solid

ated

Fi

nanc

ial S

tate

men

ts a

nd A

ASB 1

28 I

nves

tmen

ts in

Ass

ocia

tes t

o en

sure

con

sist

ent

trea

tmen

t in

dea

ling

with

the

sal

e or

con

trib

utio

n of

ass

ets

betw

een

an

inve

stor

and

its

asso

ciat

e or

joi

nt v

entu

re.

The

1-Ja

n-16

The

asse

ssm

ent

has

indi

cate

d th

at t

here

is li

mite

d im

pact

, as

the

rev

isio

ns t

o AASB 1

0 an

d AASB 1

28

are

guid

ance

in n

atur

e.

· a

ful

l gai

n or

loss

to

be r

ecog

nise

d by

the

in

vest

or w

hen

a tr

ansa

ctio

n in

volv

es a

bus

ines

s (w

heth

er it

is h

ouse

d in

a s

ubsi

diar

y or

not

); a

nd

· a

par

tial g

ain

or lo

ss t

o be

rec

ogni

sed

by t

he

pare

nt w

hen

a tr

ansa

ctio

n in

volv

es a

sset

s th

at d

o no

t co

nstit

ute

a bu

sine

ss,

even

if t

hese

ass

ets

are

hous

ed in

a s

ubsi

diar

y.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

20 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

1 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

AASB 2

015-

1 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Ann

ual I

mpr

ovem

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds 2

012-

2014

Cyc

le [

AASB 1

, AASB 2

, AASB 3

, AASB 5

, AASB 7

, AASB 1

1, A

ASB 1

10,

AASB 1

19,

AASB 1

21,

AASB 1

33,

AASB 1

34,

AASB 1

37 &

AASB 1

40]

Am

ends

the

met

hods

of di

spos

al in

AASB 5

Non

-cu

rren

t as

sets

hel

d fo

r sa

le a

nd d

isco

ntin

ued

oper

atio

ns.

1-Ja

n-16

The

asse

ssm

ent

has

indi

cate

d th

at w

hen

an a

sset

(or

di

spos

al g

roup

) is

rec

lass

ified

fro

m ‘h

eld

to s

ale’

to

‘hel

d fo

r di

stribu

tion’

, or

vic

e ve

rsa,

the

ass

et d

oes

not

have

to

be r

eins

tate

d in

the

fin

anci

al s

tate

men

ts.

Am

ends

AASB 7

Fin

anci

al I

nstr

umen

ts b

y in

clud

ing

furt

her

guid

ance

on

serv

icin

g co

ntra

cts.

En

titie

s w

ill b

e re

quired

to

disc

lose

all

type

s of

co

ntin

uing

invo

lvem

ent

the

entit

y st

ill h

as w

hen

tran

sfer

ring

a fin

anci

al a

sset

to

a th

ird

part

y un

der

cond

ition

s w

hich

allo

w it

to

dere

cogn

ise

the

asse

t.

AASB 1

5 Rev

enue

fro

m C

ontr

acts

with

Cus

tom

ers

The

core

princ

iple

of AASB 1

5 re

quires

an

entit

y to

re

cogn

ise

reve

nue

whe

n th

e en

tity

satis

fies

a pe

rfor

man

ce o

blig

atio

n by

tra

nsfe

rrin

g a

prom

ised

go

od o

r se

rvic

e to

a c

usto

mer

.

1-Ja

n-18

The

chan

ges

in r

even

ue r

ecog

nitio

n re

quirem

ents

in

AASB 1

5 m

ay r

esul

t in

cha

nges

to

the

timin

g an

d am

ount

of re

venu

e re

cord

ed in

the

fin

anci

al

stat

emen

ts.

The

Sta

ndar

d w

ill a

lso

requ

ire

addi

tiona

l di

sclo

sure

s on

ser

vice

rev

enue

and

con

trac

t m

odifi

catio

ns.

A p

oten

tial i

mpa

ct w

ill b

e th

e up

fron

t re

cogn

ition

of

reve

nue

from

lice

nses

tha

t co

ver

mul

tiple

rep

ortin

g pe

riod

s. R

even

ue t

hat

was

def

erre

d an

d am

ortis

ed

over

a p

erio

d m

ay n

ow n

eed

to b

e re

cogn

ised

im

med

iate

ly a

s a

tran

sitio

nal a

djus

tmen

t ag

ains

t th

e op

enin

g re

turn

ed e

arni

ngs

if th

ere

are

no for

mer

pe

rfor

man

ce o

blig

atio

ns o

utst

andi

ng.

AASB 2

014‑

4 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Cla

rific

atio

n of

Acc

epta

ble

Met

hods

of

Dep

reci

atio

n an

d Am

ortisa

tion

Am

ends

AASB 1

16 P

rope

rty,

Pla

nt a

nd E

quip

men

t an

d AASB 1

38 I

ntan

gibl

e Ass

ets

to:

1-Ja

n-18

The

asse

ssm

ent

has

indi

cate

d th

at t

here

is n

o ex

pect

ed im

pact

as

the

reve

nue-

base

d m

etho

d is

not

us

ed for

dep

reci

atio

n an

d am

ortis

atio

n.

[AASB 1

16 &

AASB 1

38]

· e

stab

lish

the

prin

cipl

e fo

r th

e ba

sis

of

depr

ecia

tion

and

amor

tisat

ion

as b

eing

the

exp

ecte

d pa

tter

n of

con

sum

ptio

n of

the

fut

ure

econ

omic

be

nefit

s of

an

asse

t;·

p

rohi

bit

the

use

of r

even

ue‑ba

sed

met

hods

to

cal

cula

te t

he d

epre

ciat

ion

or a

mor

tisat

ion

of a

n as

set,

tan

gibl

e or

inta

ngib

le,

beca

use

reve

nue

gene

rally

ref

lect

s th

e pa

tter

n of

eco

nom

ic b

enef

its

that

are

gen

erat

ed fro

m o

pera

ting

the

busi

ness

, ra

ther

tha

n th

e co

nsum

ptio

n th

roug

h th

e us

e of

the

as

set.

AASB 2

015‑

6 Am

endm

ents

to

Aus

tral

ian

Acc

ount

ing

Sta

ndar

ds –

Ext

endi

ng R

elat

ed P

arty

Dis

clos

ures

to

Not

-fo

r-Pr

ofit P

ublic

Sec

tor

Entities

[AASB 1

0, A

ASB 1

24 &

AASB 1

049]

The

Am

endm

ents

ext

end

the

scop

e of

AASB 1

24

Rel

ated

Par

ty D

iscl

osur

es t

o no

t-fo

r-pr

ofit

publ

ic

sect

or e

ntiti

es.

A g

uida

nce

has

been

incl

uded

to

assi

st t

he a

pplic

atio

n of

the

Sta

ndar

d by

not

-for

-pr

ofit

publ

ic s

ecto

r en

titie

s.

1-Ju

l-16

The

amen

ding

sta

ndar

d w

ill r

esul

t in

ext

ende

d di

sclo

sure

s on

the

ent

ity's

key

man

agem

ent

pers

onne

l (KM

P),

and

the

rela

ted

part

y tr

ansa

ctio

ns.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

21 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

0 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

2 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

1:

Su

mm

ary

of S

ign

ific

ant

Acc

oun

tin

g P

olic

ies

(t)

Cat

egor

y g

rou

ps

(u)

Goi

ng

Con

cern

The

goin

g co

ncer

n ba

sis

was

use

d to

pre

pare

the

fin

anci

al s

tate

men

ts.

DH

HS h

as p

rovi

ded

assu

ranc

es t

o su

ppor

t th

e on

goin

g op

erat

ions

and

fin

anci

al r

equi

rem

ents

of N

orth

ern

Hea

lth a

nd t

o pr

ovid

e N

orth

ern

Hea

lth w

ith a

dequ

ate

cash

flo

w s

uppo

rt t

o en

able

Nor

ther

n H

ealth

to

mee

t its

cur

rent

and

fut

ure

oblig

atio

ns a

s an

d w

hen

thes

e fa

ll du

e up

to

Sep

tem

ber

2017

sho

uld

this

be

requ

ired

.

Nor

ther

n H

ealth

has

use

d th

e fo

llow

ing

cate

gory

gro

ups

for

repo

rtin

g pu

rpos

es for

the

cur

rent

and

pre

viou

s fin

anci

al y

ears

.

Non

Ad

mit

ted

Ser

vice

s co

mpr

ises

acu

te a

nd s

ubac

ute

non

adm

itted

ser

vice

s, w

here

ser

vice

s ar

e de

liver

ed in

pub

lic h

ospi

tal c

linic

s an

d pr

ovid

e m

odel

s of

inte

grat

ed c

omm

unity

car

e, w

hich

sig

nific

antly

re

duce

s th

e de

man

d fo

r ho

spita

l bed

s an

d su

ppor

ts t

he t

rans

ition

fro

m h

ospi

tal t

o ho

me

in a

saf

e an

d tim

ely

man

ner.

Res

iden

tial

Ag

ed C

are

refe

rred

to

in t

he p

ast

as p

sych

oger

iatr

ic r

esid

entia

l ser

vice

s, c

ompr

ises

tho

se C

omm

onw

ealth

-lic

ense

d re

side

ntia

l age

d ca

re s

ervi

ces.

Oth

er S

ervi

ces

not

rep

orte

d e

lsew

her

e -

(Oth

er)

com

pris

es s

ervi

ces

not

sepa

rate

ly c

lass

ified

abo

ve,

incl

udin

g: P

ublic

Hea

lth S

ervi

ces

incl

udin

g la

bora

tory

tes

ting,

blo

od b

orne

virus

es /

sex

ually

tr

ansm

itted

infe

ctio

ns c

linic

al s

ervi

ces,

Koo

ris

liais

on o

ffic

ers,

imm

unis

atio

n an

d sc

reen

ing

serv

ices

, dr

ugs

serv

ices

incl

udin

g dr

ug w

ithdr

awal

, co

unse

lling

and

the

nee

dle

and

syring

e pr

ogra

m,

Dis

abili

ty

serv

ices

incl

udin

g ai

ds a

nd e

quip

men

t an

d fle

xibl

e su

ppor

t pa

ckag

es t

o pe

ople

with

a d

isab

ility

, Com

mun

ity C

are

prog

ram

s in

clud

ing

sexu

al a

ssau

lt su

ppor

t, e

arly

par

entin

g se

rvic

es,

pare

ntin

g as

sess

men

t an

d sk

ills

deve

lopm

ent,

and

var

ious

sup

port

ser

vice

s. H

ealth

and

Com

mun

ity I

nitia

tives

als

o fa

lls in

thi

s ca

tego

ry g

roup

.

Ag

ed C

are

com

pris

es a

ran

ge o

f in

hom

e, s

peci

alis

t ge

riat

ric,

res

iden

tial c

are

and

com

mun

ity b

ased

pro

gram

s an

d su

ppor

t se

rvic

es,

such

as

Hom

e an

d Com

mun

ity C

are

(HACC)

that

are

tar

gete

d to

old

er

peop

le,

peop

le w

ith a

dis

abili

ty,

and

thei

r ca

rers

.

Ad

mit

ted

Pat

ien

t S

ervi

ces

(Ad

mit

ted

Pat

ien

ts)

com

pris

es a

ll ac

ute

and

suba

cute

adm

itted

pat

ient

ser

vice

s, w

here

ser

vice

s ar

e de

liver

ed in

pub

lic h

ospi

tals

.

Emer

gen

cy D

epar

tmen

t S

ervi

ces

com

pris

es a

ll em

erge

ncy

depa

rtm

ent

serv

ices

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

22 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

3 of

62

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

tsN

ort

her

n H

ealt

h A

nn

ual

Re p

ort

20

15

/2

01

6

Oth

erTo

tal

Co

nso

l'd2

01

62

01

62

01

62

01

62

01

62

01

62

01

6$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0

Gov

ernm

ent

Gra

nts

311,

072

29,6

41

29,4

01

2,51

1

10

,532

-

38

3,15

7

In

dire

ct c

ontr

ibut

ions

by

DH

HS*

6,73

9

-

-

-

-

-

6,

739

Patie

nt a

nd R

esid

ent

Fees

15

,313

13

1

4

574

92

-

16,1

13

Com

mer

cial

Act

iviti

es-

-

-

-

-

10

,757

10

,757

O

ther

Rev

enue

fro

m O

pera

ting

Act

iviti

es**

3,95

3

12

3

276

28

43

-

4,

423

Tota

l Rev

enu

e fr

om

Op

erat

ing

Act

ivit

ies

33

7,0

77

2

9,8

95

2

9,6

80

3

,11

4

1

0,6

67

1

0,7

57

4

21

,18

9

Inte

rest

576

-

-

-

-

57

633

O

ther

Rev

enue

fro

m N

on-O

pera

ting

Act

iviti

es-

-

-

-

-

7,

421

7,42

1

Tota

l Rev

enu

e fr

om

No

n-O

per

atin

g A

ctiv

itie

s5

76

-

-

-

-

7

,47

8

8

,05

4

Cap

ital P

urpo

se I

ncom

e (e

xclu

ding

inte

rest

)-

-

-

19

6

-

1,76

0

1,

956

Gov

ernm

ent

Gra

nts

-

-

-

-

-

25,6

99

25,6

99

Ca p

ital I

nter

est

-

-

-

-

-

285

28

5

Tota

l Cap

ital

Pu

rpo

se I

nco

me

-

-

-

19

6

-

27

,74

4

27

,94

0

Proc

eeds

fro

m D

ispo

sals

of

Non

-Cur

rent

Ass

ets

(see

Not

e 2a

) **

*-

-

-

-

-

14

14

To

tal O

ther

Eco

no

mic

Flo

ws

Incl

ud

ed in

Net

Res

ult

--

--

-1

41

4To

tal R

even

ue

33

7,6

53

29

,89

52

9,6

80

3,3

10

10

,66

74

5,9

93

45

7,1

97

sala

ry a

nd w

ages

exp

ense

s.

*** P

roce

eds

from

Dis

posa

l of N

on-C

urre

nt A

sset

s is

repo

rted

unde

r Net

Gai

n/(L

oss)

on

Non

-fina

ncia

l Ass

ets

on th

e O

pera

ting

Stat

emen

t

Not

e 2

: A

nal

ysis

of

Con

solid

ated

Rev

enu

e b

y S

ourc

e

Ad

mit

ted

P

atie

nts

No

n

Ad

mit

ted

P

atie

nts

Emer

gen

cy

Dep

artm

ent

Ser

vice

s

* D

HH

S m

akes

cer

tain

mak

es c

erta

in p

aym

ents

on

beha

lf of

Nor

ther

n H

ealth

suc

h a

Med

ical

Ind

emni

ty I

nsur

ance

(kn

own

as I

ndir

ect

Con

trib

utio

ns).

The

se a

mou

nts

have

bee

n br

ough

t to

ac

coun

t in

det

erm

inin

g th

e op

erat

ing

resu

lt fo

r th

e ye

ar b

y re

cord

ing

them

as

reve

nue

and

expe

nses

.

* D

urin

g 20

15-1

6 N

orth

ern

Hea

lth t

rans

ition

ed t

o th

e D

HH

S Lo

ng S

ervi

ce L

eave

(LS

L) m

odel

, w

hich

res

ulte

d in

a $

4.8

mill

ion

reva

luat

ion

of t

he p

rese

nt v

alue

of

the

Long

Ser

vice

Lea

ve

liabi

lity.

The

rem

easu

rem

ent

incl

udes

the

ass

ocia

ted

impa

ct o

f bo

nd r

ate

chan

ges.

The

incr

ease

in t

he L

SL e

xpen

se is

larg

ely

offs

et b

y an

equ

ival

ent

incr

ease

in D

HH

S L

ong

Ser

vice

Lea

ve

reve

nue

(sho

wn

abov

e ag

ains

t In

dire

ct c

ontr

ibut

ions

by

DH

HS).

Ag

ed C

are

Res

iden

tial

A

ged

Car

e S

ervi

ces

** N

orth

ern

Hea

lth

allo

cate

s O

ther

Rev

enue

fro

m O

pera

ting

Act

iviti

es w

hich

is s

uppo

rted

by

the

Hea

lth S

ervi

ces

Agr

eem

ent

acro

ss t

he c

linic

al c

ateg

orie

s ba

sed

on t

heir

pro

port

iona

te s

hare

of

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2015

-201

6 An

nual

Rep

ort

Page

23

of 6

2

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

4 of

62

No

tes

To a

nd

Fo

rmin

g P

art

of

the

Fin

anci

al S

tate

men

tsN

ort

her

n H

ealt

h A

nn

ual

Re p

ort

20

15

/2

01

6

Not

e 2

: A

nal

ysis

of

Con

solid

ated

Rev

enu

e b

y S

ourc

e (C

onti

nu

ed)

Oth

erTo

tal

Co

nso

l'd

20

15

20

15

20

15

20

15

20

15

20

15

20

15

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Gov

ernm

ent

Gra

nts

278,

278

28,4

00

27,3

64

2,29

7

10

,697

-

34

7,03

6

In

dire

ct c

ontr

ibut

ions

by

DH

HS*

996

-

-

-

-

-

99

6

Patie

nt a

nd R

esid

ent

Fees

14

,943

11

9

5

540

88

-

15,6

95

Com

mer

cial

Act

iviti

es a

nd S

peci

fic P

urpo

se F

unds

-

-

-

-

-

9,49

9

9,

499

Oth

er R

even

ue f

rom

Ope

ratin

g Act

iviti

es3,

934

113

34

5

-

51

-

4,

443

Tota

l Rev

enu

e fr

om

Op

erat

ing

Act

ivit

ies

29

8,1

51

2

8,6

32

2

7,7

14

2

,83

7

1

0,8

36

9

,49

9

3

77

,66

9

Inte

rest

52

7

--

--

137

66

4

Oth

er R

even

ue f

rom

Non

-Ope

ratin

g Act

iviti

es-

--

--

6,32

3

6,

323

Tota

l Rev

enu

e fr

om

No

n-O

per

atin

g A

ctiv

itie

s5

27

--

--

6,4

60

6,9

87

Cap

ital P

urpo

se I

ncom

e (e

xclu

ding

inte

rest

)-

-

-

16

1

-

431

59

2

Gov

ernm

ent

Gra

nts

-

-

-

-

-

12,3

43

12,3

43

Cap

ital I

nter

est

-

-

-

-

-

269

26

9

Tota

l Cap

ital

Pu

rpo

se I

nco

me

--

-1

61

-1

3,0

43

13

,20

4Pr

ocee

ds f

rom

Dis

posa

ls o

f N

on-C

urre

nt A

sset

s (s

ee N

ote

2a)

***

-

-

-

-

-

1

1

Tota

l Oth

er E

con

om

ic F

low

s In

clu

ded

in N

et R

esu

lt-

--

--

11

Tota

l Rev

enu

e 2

98

,67

82

8,6

32

27

,71

42

,99

81

0,8

36

29

,00

33

97

,86

1

*** P

roce

eds

from

Dis

posa

l of N

on-C

urre

nt A

sset

s is

repo

rted

unde

r Net

Gai

n/(L

oss)

on

Non

-fina

ncia

l Ass

ets

on th

e O

pera

ting

Stat

emen

t

sala

ry a

nd w

ages

exp

ense

s.

* D

HH

S m

akes

cer

tain

mak

es c

erta

in p

aym

ents

on

beha

lf of

Nor

ther

n H

ealth

suc

h a

Med

ical

Ind

emni

ty I

nsur

ance

(kn

own

as I

ndir

ect

Con

trib

utio

ns).

The

se a

mou

nts

have

bee

n br

ough

t to

ac

coun

t in

det

erm

inin

g th

e op

erat

ing

resu

lt fo

r th

e ye

ar b

y re

cord

ing

them

as

reve

nue

and

expe

nses

.

* D

urin

g 20

15-1

6 N

orth

ern

Hea

lth t

rans

ition

ed t

o th

e D

HH

S Lo

ng S

ervi

ce L

eave

(LS

L) m

odel

, w

hich

res

ulte

d in

a $

4.8

mill

ion

reva

luat

ion

of t

he p

rese

nt v

alue

of

the

Long

Ser

vice

Lea

ve

liabi

lity.

The

rem

easu

rem

ent

incl

udes

the

ass

ocia

ted

impa

ct o

f bo

nd r

ate

chan

ges.

The

incr

ease

in t

he L

SL e

xpen

se is

larg

ely

offs

et b

y an

equ

ival

ent

incr

ease

in D

HH

S L

ong

Ser

vice

Lea

ve

reve

nue

(sho

wn

abov

e ag

ains

t In

dire

ct c

ontr

ibut

ions

by

DH

HS).

Res

iden

tial

A

ged

Car

e S

ervi

ces

Ag

ed C

are

No

n

Ad

mit

ted

P

atie

nts

Emer

gen

cy

Dep

artm

ent

Ser

vice

s A

dm

itte

d

Pat

ien

ts

** N

orth

ern

Hea

lth

allo

cate

s O

ther

Rev

enue

fro

m O

pera

ting

Act

iviti

es w

hich

is s

uppo

rted

by

the

Hea

lth S

ervi

ces

Agre

emen

t ac

ross

the

clin

ical

cat

egor

ies

base

d on

the

ir p

ropo

rtio

nate

sha

re o

f

Nor

ther

n H

ealth

Fin

anci

al R

epor

tAp

pend

ix to

the

2015

-201

6 An

nual

Rep

ort

Page

24

of 6

2

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

5 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Pro

ceed

s fr

om D

isp

osal

s of

Non

-Cu

rren

t A

sset

sM

edic

al E

quip

men

t2

56

Mot

or V

ehic

les

12

-

Tota

l Pro

ceed

s fr

om D

isp

osal

of

Non

-Cu

rren

t A

sset

s1

45

6

Less

: W

ritt

en D

own

Val

ue

of N

on-C

urr

ent

Ass

ets

Sol

dM

edic

al E

quip

men

t54

-

Mot

or V

ehic

les

27

-

Oth

er17

1

Tota

l Wri

tten

Dow

n V

alu

e of

Non

Cu

rren

t A

sset

s S

old

98

1

Net

Gai

ns/

(Los

ses)

on

Dis

pos

al o

f N

on-C

urr

ent

Ass

ets

(84

)5

5

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Du

rin

g t

he

rep

orti

ng

per

iod

fai

r va

lue

of a

sset

s re

ceiv

ed f

ree

of c

har

ge

was

as

follo

ws:

Med

ical

Equ

ipm

ent

11

-

Tota

l1

1-

Not

e 2

a: N

et G

ain

/(L

oss)

on

Dis

pos

al o

f N

on-f

inan

cial

Ass

ets

Not

e 2

b:

Ass

ets

rece

ived

fre

e of

ch

arg

e or

for

nom

inal

con

sid

erat

ion

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

25 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

4 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

6 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Re p

ort

20

15

/2

01

6

Tota

lC

onso

l'd2

01

62

01

62

01

62

01

62

01

62

01

62

01

6$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0*

**

$'0

00

Empl

oyee

Exp

ense

s *

226,

947

16,9

11

38,5

15

3,94

0

5,96

8

5,80

8

298,

089

Non

Sal

ary

Labo

ur C

osts

7,99

5

351

1,

061

86

36

13

3

9,66

2

Sup

plie

s an

d Con

sum

able

s58

,255

2,

609

13

,462

53

7

2,74

2

601

78

,206

O

ther

Exp

ense

s fr

om C

ontin

uing

Ope

ratio

ns**

31,0

89

1,60

0

3,82

7

713

1,

001

4,

520

42

,750

Tota

l Exp

end

itu

re f

rom

Op

erat

ing

Act

ivit

ies

32

4,2

86

21

,47

1

56

,86

5

5,2

76

9,7

47

11

,06

2

42

8,7

07

Expe

nditu

re f

or C

apita

l Pur

pose

s-

-

-

-

-

31

2

31

2

De p

reci

atio

n an

d Am

ortis

atio

n (r

efer

not

e 4)

-

-

-

26

-

22

,898

22

,924

W

ritt

en D

own

Val

ue o

f Ass

ets

Sol

d (r

efer

not

e 2a

)-

-

-

-

-

98

98

Fi

nanc

e Cos

ts (

refe

r no

te 5

)-

-

-

-

-

27

27

Spe

cific

Exp

ense

s (r

efer

to

note

3b)

-

-

-

-

-

80

3

80

3

Tota

l Oth

er E

xpen

ses

-

-

-

2

6

-

2

4,1

38

2

4,1

64

Tota

l Exp

ense

s 3

24

,28

6

2

1,4

71

5

6,8

65

5

,30

2

9

,74

7

3

5,2

00

4

52

,87

1

Not

e 3

: A

nal

ysis

of

Con

solid

ated

Exp

ense

s b

y S

ourc

e

Ad

mit

ted

Pat

ien

ts

Non

Ad

mit

ted

Pat

ien

ts

Emer

gen

cyD

epar

tmen

tS

ervi

ces

Oth

er

Res

iden

tial

Ag

ed C

are

Ser

vice

sA

ged

Car

e

** N

orth

ern

Hea

lth a

lloca

tes

Oth

er E

xpen

ses

from

Con

tinui

ng O

pera

tions

sup

port

ed b

y th

e H

ealth

Ser

vice

s Agr

eem

ent

acro

ss t

he c

linic

al c

ateg

orie

s ba

sed

on t

heir p

ropo

rtio

nate

sha

re o

f sa

lary

an

d w

ages

exp

ense

s.

* D

urin

g 20

15-1

6 N

orth

ern

Hea

lth t

rans

ition

ed t

o th

e D

HH

S L

ong

Ser

vice

Lea

ve (

LSL)

mod

el,

whi

ch r

esul

ted

in a

$4.

8 m

illio

n re

valu

atio

n of

the

pre

sent

val

ue o

f th

e Lo

ng S

ervi

ce L

eave

lia

bilit

y. T

he r

emea

sure

men

t in

clud

es t

he a

ssoc

iate

d im

pact

of

bond

rat

e ch

ange

s. T

he in

crea

se in

the

LSL

expe

nse

is la

rgel

y of

fset

by

an e

quiv

alen

t in

crea

se in

DH

HS L

ong

Ser

vice

Lea

ve

reve

nue

(ref

er N

ote

2).

***R

efer

to

Not

e 3a

for

fur

ther

det

ails

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

26 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

7 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Re p

ort

20

15

/2

01

6

Tota

lC

onso

l'd2

01

52

01

52

01

52

01

52

01

52

01

52

01

5$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0$

'00

0*

*$

'00

0

Empl

oyee

Exp

ense

s20

5,76

2

15

,237

38

,540

2,

417

5,

981

4,

815

27

2,75

3

N

on S

alar

y La

bour

Cos

ts e

xcl.

Con

sulti

ng7,

711

49

5

1,92

8

50

60

389

10

,633

Sup

plie

s an

d Con

sum

able

s49

,658

2,

191

11

,769

41

8

2,52

0

452

67

,007

O

ther

Ex p

ense

s fr

om C

ontin

uing

Ope

ratio

ns *

30,9

88

1,

656

4,

297

42

3

1,

042

4,

544

42

,950

To

tal E

xpen

dit

ure

fro

m O

per

atin

g A

ctiv

itie

s2

94

,11

91

9,5

78

56

,53

43

,30

89

,60

31

0,2

00

39

3,3

43

Expe

nditu

re f

or C

apita

l Pur

pose

s-

-

-

-

-

1,

079

1,

079

D

epre

ciat

ion

and

Am

ortis

atio

n (r

efer

not

e 4)

-

-

-

26

-

22

,006

22

,032

W

ritt

en D

own

Val

ue o

f Ass

ets

Sol

d (r

efer

not

e 2a

)-

-

-

-

-

1

1

Fi

nanc

e Cos

ts (

refe

r no

te 5

)-

-

-

-

-

17

17

Tota

l Oth

er E

xpen

ses

-

-

-

2

6

-

2

3,1

03

2

3,1

29

Tota

l Exp

ense

s 2

94

,11

9

1

9,5

78

5

6,5

34

3

,33

4

9

,60

3

3

3,3

03

4

16

,47

2

**Ref

er t

o N

ote

3a f

or f

urth

er d

etai

ls.

Ad

mit

ted

Pat

ien

ts

Non

Ad

mit

ted

Pat

ien

ts

Emer

gen

cyD

epar

tmen

tS

ervi

ces

Ag

ed C

are

Oth

er

Res

iden

tial

Ag

ed C

are

Ser

vice

s

Not

e 3

: A

nal

ysis

of

Con

solid

ated

Exp

ense

s b

y S

ourc

e (C

onti

nu

ed)

* N

orth

ern

Hea

lth a

lloca

tes

Oth

er E

xpen

ses

from

Con

tinui

ng O

pera

tions

sup

port

ed b

y th

e H

ealth

Ser

vice

s Agr

eem

ent

acro

ss t

he c

linic

al c

ateg

orie

s ba

sed

on t

heir p

ropo

rtio

nate

sha

re o

f sa

lary

an

d w

ages

exp

ense

s.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

27 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

6 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

8 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Con

sol'd

Con

sol'd

Con

sol'd

Con

sol'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

Com

mer

cial

Act

ivit

ies

Priv

ate

Prac

tice

and

othe

r pa

tient

act

iviti

es2,

783

2,

167

3,

487

2,

851

Car

Par

k26

2

260

2,95

0

2,

907

Pr

oper

ty E

xpen

ses

4,61

9

4,

386

5,

831

5,

006

N

orth

ern

Hea

lth F

ound

atio

n :

Mar

ketin

g Ex

pend

iture

and

Cap

ital D

onat

ions

51

0

424

909

748

Sal

ary

Pack

agin

g33

6

543

1,95

8

1,

522

Alli

ed H

ealth

and

Reh

abili

tatio

n Sup

ply

Sto

re76

8

356

988

554

Oth

er A

ctiv

itie

sFu

ndra

isin

g an

d Com

mun

ity S

uppo

rt-

14

-

60

Res

earc

h an

d Sch

olar

ship

1,22

2

1,

058

1,

502

1,

115

Spe

cial

and

Res

tric

ted

Purp

ose

Fund

s56

2

992

610

1,19

6

TO

TAL

11

,06

21

0,2

00

18

,23

51

5,9

59

15,9

42

Not

e 3

b:

Sp

ecif

ic E

xpen

ses

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Sp

ecif

ic E

xpen

ses

Cos

ts A

ssoc

iate

d w

ith O

r gan

isat

iona

l Res

truc

ture

(D

isag

greg

atio

n/Agg

rega

tion)

803

-

Tota

l Sp

ecif

ic E

xpen

ses

80

3-

Not

e 3

a: A

nal

ysis

of

Exp

ense

s an

d R

even

ue

by

Inte

rnal

ly M

anag

ed a

nd

Res

tric

ted

Sp

ecif

ic P

urp

ose

Fun

ds

for

Ser

vice

s S

up

por

ted

by

Hos

pit

al a

nd

Com

mu

nit

y In

itia

tive

s

Rev

enu

eEx

pen

se

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

28 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

9 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Dep

reci

atio

nBui

ldin

gs17

,806

17,2

27

Med

ical

Equ

ipm

ent

3,07

0

3,19

3

Com

pute

rs a

nd C

omm

unic

atio

n96

8

824

Furn

iture

and

Fitt

ings

276

221

Mot

or V

ehic

les

145

104

Non

Med

ical

Equ

ipm

ent

272

267

Tota

l Dep

reci

atio

n2

2,5

37

21

,83

6

Am

orti

sati

onIn

tang

ible

Ass

ets

388

196

Tota

l Am

orti

sati

on3

88

19

6

Tota

l Dep

reci

atio

n a

nd

Am

orti

sati

on2

2,9

25

22

,03

2

Con

sol'd

Con

sol'd

20

16

20

15

Inte

rest

on

Lon g

Ter

m B

orro

win

gs27

17

Tota

l Fin

ance

Cos

ts2

71

7

Not

e 4

: D

epre

ciat

ion

an

d A

mor

tisa

tion

Not

e 5

: Fi

nan

ce C

osts

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

29 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 2

8 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

0 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6N

ote

6:

Cas

h a

nd

Cas

h E

qu

ival

ents

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Cas

h on

Han

d29

28

Cas

h at

Ban

k17

,631

8,03

3

Cas

h in

Sho

rt-t

erm

Dep

osits

2,00

0

-

Tota

l Cas

h a

nd

Cas

h E

qu

ival

ents

19

,66

08

,06

1

Rep

rese

nted

by:

Cas

h fo

r H

ealth

Ser

vice

Ope

ratio

ns (

as p

er C

ash

Flow

Sta

tem

ent)

19,6

53

8,05

5

Cas

h he

ld in

Tru

st7

6

Tota

l Cas

h a

nd

Cas

h E

qu

ival

ents

19

,66

08

,06

1

Cas

h an

d ca

sh e

quiv

alen

ts in

lcud

es Cas

h O

n H

and

and

Cas

h In

Ban

ks a

nd s

hort

-ter

m d

epos

its w

hich

are

rea

dily

con

vert

ible

to

cash

on

hand

, an

d ar

e no

t s

ubje

ct t

o an

y m

ater

ial r

isks

of ch

ange

in v

alue

. (N

ote

that

Nor

ther

n H

ealth

doe

s no

t m

aint

ain

an o

verd

raft

fac

ility

).

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

30 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

1 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

CU

RR

ENT

Con

trac

tual

Trad

e D

ebto

rs3,

068

1,39

0

Patie

nt F

ees

4,01

2

4,66

5

Acc

rued

Rev

enue

- O

ther

1,96

9

1,96

0

Less

Allo

wan

ce for

Dou

btfu

l Deb

tsTr

ade

Deb

tors

(38)

(85)

Patie

nt F

ees

(1,2

31)

(742

)

7,7

80

7,1

88

Sta

tuto

r yG

ST

Rec

eiva

ble

1,69

3

1,66

2

1,6

93

1,6

62

TOTA

L C

UR

REN

T R

ECEI

VA

BLE

S9

,47

38

,85

0

NO

N C

UR

REN

TS

tatu

tory

Long

Ser

vice

Lea

ve -

DH

HS

7,41

7

5,00

8

TOTA

L N

ON

-CU

RR

ENT

REC

EIV

AB

LES

7,4

17

5,0

08

TOTA

L R

ECEI

VA

BLE

S1

6,8

90

13

,85

8

Con

sol'd

Con

sol'd

20

16

20

15

(a)

Mov

emen

t in

th

e A

llow

ance

for

Dou

btf

ul D

ebts

$'0

00

$'0

00

Bal

ance

at

begi

nnin

g of

yea

r82

7

627

Am

ount

s w

ritt

en o

ff d

urin

g th

e ye

ar(6

79)

(466

)

Incr

ease

in a

llow

ance

rec

ogni

sed

in n

et r

esul

ts1,

121

666

Bal

ance

at

end

of

year

1,2

69

82

7

(b)

Ag

ein

g a

nal

ysis

of

rece

ivab

les

Plea

se r

efer

to

Not

e 19

(c)

for

the

a gei

ng a

naly

sis

of c

ontr

actu

al r

ecei

vabl

es

(c)

Nat

ure

an

d e

xten

t of

ris

k ar

isin

g f

rom

rec

eiva

ble

sPl

ease

ref

er t

o N

ote

19(c

) fo

r th

e na

ture

and

ext

ent

of c

redi

t risk

arisi

ng fro

m c

ontr

actu

al r

ecei

vabl

es.

Not

e 7

: R

ecei

vab

les

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

31 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

0 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

2 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Med

ical

and

Sur

gica

l Sup

plie

s (a

t co

st)

1,34

0

1,06

0

Phar

mac

eutic

als

(at

cost

)1,

033

890

TOTA

L IN

VEN

TOR

IES

2,3

73

1,9

50

Con

sol'd

Con

sol'd

CU

RR

ENT

20

16

20

15

$'0

00

$'0

00

Prep

aym

ents

1,46

5

872

TOTA

L O

THER

AS

SET

S1

,46

58

72

Not

e 8

: In

ven

tori

es

Not

e 9

: P

rep

aym

ents

an

d o

ther

Ass

ets

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

32 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

3 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

(a)

Gro

ss c

arry

ing

am

oun

t an

d a

ccu

mu

late

d d

epre

ciat

ion

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Lan

dLa

nd a

t Fa

ir V

alue

47,3

48

47,3

48

Tota

l Lan

d4

7,3

48

47

,34

8

Bui

ldin

gs a

t co

st81

,727

50,2

03

Less

Acc

umul

ated

Dep

reci

atio

n2,

967

1,

194

78,7

60

49,0

09

Bui

ldin

gs a

t Fa

ir V

alue

277,

806

27

7,80

6

Le

ss A

ccum

ulat

ed D

epre

ciat

ion

32,0

64

16,0

32

Tota

l Bu

ildin

gs

32

4,5

02

31

0,7

83

Ass

ets

un

der

Con

stru

ctio

nAss

ets

unde

r co

nstr

uctio

n at

cos

t72

5

11,3

52

Tota

l Ass

ets

Un

der

Con

stru

ctio

n7

25

11

,35

2M

edic

al E

quip

men

t at

Fai

r Val

ue34

,234

33,5

70

Less

Acc

umul

ated

Dep

reci

atio

n19

,934

17,2

30

Tota

l Med

ical

Eq

uip

men

t1

4,3

00

16

,34

0

Com

pu

ters

an

d C

omm

un

icat

ion

Com

pute

rs a

nd C

omm

unic

atio

n7,

805

7,

363

Le

ss A

ccum

ulat

ed D

epre

ciat

ion

6,24

7

5,

433

To

tal C

omp

ute

rs a

nd

Com

mu

nic

atio

n1

,55

81

,93

0

Furn

itu

re a

nd

Fit

tin

gs

Furn

iture

and

Fitt

ings

2,93

3

2,

851

Le

ss A

ccum

ulat

ed D

epre

ciat

ion

1,40

3

1,

139

O

ther

Exp

ense

s fr

om C

onti

nu

ing

Op

erat

ion

s1

,53

01

,71

2N

on-M

edic

al E

qu

ipm

ent

Non

-Med

ical

Equ

ipm

ent

2,67

6

2,

487

Le

ss A

ccum

ulat

ed D

epre

ciat

ion

1,17

7

91

3

Tota

l Non

Med

ical

Eq

uip

men

t1

,49

91

,57

4

Mot

or V

ehic

les

Mot

or V

ehic

les

1,61

9

1,

598

Le

ss A

ccum

ulat

ed D

epre

ciat

ion

1,26

3

1,

178

To

tal M

otor

Veh

icle

s3

56

42

0

Art

wor

ksArt

wor

ks a

t va

luat

ion

468

468

Tota

l Art

wor

ks4

68

46

8

TOTA

L3

92

,28

63

91

,92

7

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

33 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

4 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

(b)

Rec

onci

liati

ons

of t

he

carr

yin

g a

mou

nts

of

each

cla

ss o

f as

set

Lan

dB

uild

ing

sM

edic

al

Ass

ets

Un

der

Com

pu

ters

an

dFu

rnit

ure

an

dN

on M

edic

alM

otor

Art

wor

ksTo

tal

Equ

ipm

ent

Con

stru

ctio

nC

omm

un

icat

ion

Fitt

ing

sEq

uip

men

tV

ehic

les

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Bal

ance

at

1 J

uly

20

14

47

,34

8

29

6,1

24

17

,12

72

7,1

46

1,5

42

1

,36

11

,39

72

95

46

83

92

,80

8

Add

ition

s-

6,

885

2,

394

9,

339

1,

201

57

2

334

229

-

20,9

54

Dis

posa

ls-

-

-

-

-

-

(1)

-

-

(1)

Rev

alua

tion

incr

emen

ts/(

decr

emen

ts)

-

-

-

-

-

-

-

-

-

-

N

et T

rans

fers

bet

wee

n cl

asse

s-

25

,000

12

(25,

133)

11

-

110

-

-

-

D

epre

ciat

ion

(not

e 4)

-

(1

7,22

6)

(3,1

93)

-

(824

)

(221

)

(2

66)

(1

04)

-

(21,

834)

R

esta

ted

Bal

ance

at

1 J

uly

20

15

47

,34

8

31

0,7

83

16

,34

01

1,3

52

1,9

30

1

,71

21

,57

44

20

46

83

91

,92

7

Add

ition

s-

20

,224

1,07

5

72

5

561

94

207

107

-

22,9

94

Dis

posa

ls-

-

(54)

-

(4)

-

(13)

(2

7)

-

(98)

N

et T

rans

fers

bet

wee

n cl

asse

s-

11

,301

9

(11,

352)

39

-

3

1

-

-

D

epre

ciat

ion

(not

e 4)

-

(1

7,80

6)

(3,0

70)

-

(968

)

(276

)

(2

72)

(1

45)

-

(22,

537)

B

alan

ce a

t 3

0 J

un

e 2

01

64

7,3

48

3

24

,50

2

14

,30

0

7

25

1,5

58

1,5

30

1

,49

9

35

6

4

68

39

2,2

86

Lan

d a

nd

bu

ildin

gs

carr

ied

at

valu

atio

n

Pla

nt

and

all

oth

er e

qu

ipm

ent

Plan

t an

d al

l oth

er e

quip

men

t ar

e re

port

ed a

t fa

ir v

alue

as

asse

ssed

by

Nor

ther

n H

ealth

Man

agem

ent

in a

ccor

danc

e w

ith F

RD

103

F N

on-c

urre

nt P

hysi

cal A

sset

s.

(i)

An

inde

pend

ent

valu

atio

n of

Nor

ther

n H

ealth

's p

rope

rty,

was

per

form

ed b

y th

e Val

uer-

Gen

eral

Vic

toria

to

dete

rmin

e th

e fa

ir v

alue

of th

e la

nd a

nd b

uild

ings

. T

he v

alua

tion,

whi

ch c

onfo

rms

to A

ustr

alia

n Val

uatio

n Sta

ndar

ds,

was

det

erm

ined

by

refe

renc

e to

the

am

ount

s fo

r w

hich

ass

ets

coul

d be

exc

hang

ed b

etw

een

know

ledg

eabl

e w

illin

g pa

rtie

s in

an

arm

's le

ngth

tra

nsac

tion.

The

val

uatio

n w

as b

ased

on

inde

pend

ent

asse

ssm

ents

. Th

e ef

fect

ive

date

of th

e in

depe

nden

t va

luat

ion

is 3

0 Ju

ne 2

014.

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

34 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

5 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

(c)

Fair

val

ue

mea

sure

men

t h

iera

rch

y fo

r as

sets

as

at 3

0 J

un

e 2

01

6

Leve

l 1 (1

)Le

vel 2

(1)

Leve

l 3 (1

)

Lan

d a

t fa

ir v

alu

eN

on-s

peci

alis

ed la

nd (

ii)1,

538

-

1,53

8

-

Spe

cial

ised

land

(i)

45

,810

-

-

45,8

10

To

tal o

f la

nd

at

fair

val

ue

47,3

48

-

1,53

8

45

,810

B

uild

ing

s at

fai

r va

lue

Non

-spe

cial

ised

bui

ldin

gsSpe

cial

ised

bui

ldin

gs32

4,50

2

-

78,7

60

24

5,74

2

Tota

l of

bu

ildin

g a

t fa

ir v

alu

e32

4,50

2

-

78,7

60

24

5,74

2

Com

pu

ter

and

Com

mu

nic

atio

n a

t fa

ir v

alu

eCom

pute

r an

d Com

mun

icat

ion

at

fair v

alue

1,55

8

-

-

1,55

8

To

tal o

f co

mp

ute

r an

d c

omm

un

icat

ion

at

fair

val

ue

1,55

8

-

-

1,55

8

Fu

rnit

ure

an

d F

itti

ng

at

fair

val

ue

Furn

iture

and

Fitt

ing

at fai

r va

lue

1,53

0

-

-

1,53

0

To

tal o

f fu

rnit

ure

an

d f

itti

ng

at

fair

val

ue

1,53

0

-

-

1,53

0

Non

Med

ical

eq

uip

men

t at

fai

r va

lue

Non

med

ical

Equ

ipm

ent

at fai

r va

lue

1,49

9

-

-

1,49

9

To

tal o

f N

on M

edic

al E

qu

ipm

ent

at f

air

valu

e1,

499

-

-

1,49

9

M

otor

Veh

icle

s at

fai

r va

lue

Mot

or V

ehic

les

at fai

r va

lue(

ii)35

6

-

-

356

Tota

l mot

or v

ehic

les

at f

air

valu

e35

6

-

-

356

Med

ical

eq

uip

men

t at

fai

r va

lue

Med

ical

equ

ipm

ent

at fai

r va

lue

(iii

)14

,300

-

-

14,3

00

To

tal M

edic

al e

qu

ipm

ent

at f

air

valu

e14

,300

-

-

14,3

00

Art

wor

ks a

t fa

ir v

alu

eArt

wor

ks (i

v)46

8

-

468

-

Tota

l Art

wor

ks a

t fa

ir v

alu

e46

8

-

468

-

Ass

ets

un

der

con

stru

ctio

n a

t fa

ir v

alu

eAss

ets

unde

r co

nstr

uctio

n72

5

-

-

725

Tota

l ass

ets

un

der

con

stru

ctio

n a

t fa

ir v

alu

e72

5

-

-

725

39

2,2

86

-8

0,7

66

31

1,5

20

Sp

ecia

lised

lan

d

Non

-sp

ecia

lised

lan

d

Veh

icle

s

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t(c

onti

nu

ed)

(i) C

lass

ified

in a

ccor

danc

e w

ith t

he fai

r va

lue

hier

arch

y, s

ee N

ote

1(b)

.An

inde

pend

ent

valu

atio

n of

Nor

ther

n H

ealth

’s s

peci

alis

ed la

nd a

nd s

peci

alis

ed b

uild

ings

was

per

form

ed b

y th

e Val

uer-

Gen

eral

Vic

toria.

The

val

uatio

n w

as p

erfo

rmed

usi

ng t

he m

arke

t ap

proa

ch

adju

sted

for

CSO

. Th

e ef

fect

ive

date

of th

e va

luat

ion

is 3

0 Ju

ne 2

014.

Car

ryin

g a

mou

nt

as

at 3

0 J

un

e 2

01

6Fa

ir v

alu

e m

easu

rem

ent

at e

nd

of

rep

orti

ng

per

iod

usi

ng

:

(ii)

The

proc

ess

of v

ehic

le a

cqui

sitio

n, u

se a

nd d

ispo

sal i

s m

anag

ed b

y N

orth

ern

Hea

lth w

hich

set

s th

e re

leva

nt d

epre

ciat

ion

rate

s du

ring

use

to

refle

ct t

he u

tilis

atio

n of

the

veh

icle

s. T

he b

ook

valu

e of

th

e ve

hicl

es is

con

side

red

a re

ason

able

val

uatio

n of

the

fai

r va

lue

of t

he v

ehic

le a

sset

s.

(ii)

For

non-

spec

ialis

ed la

nd,

an in

depe

nden

t va

luat

ion

was

per

form

ed b

y th

e Val

uer-

Gen

eral

Vic

toria

to d

eter

min

e th

e fa

ir v

alue

usi

ng t

he m

arke

t ap

proa

ch.

Val

uatio

n of

the

ass

ets

was

det

erm

ined

by

anal

ysin

g co

mpa

rabl

e sa

les

and

allo

win

g fo

r sh

are,

siz

e, t

opog

raph

y, lo

catio

n an

d ot

her

rele

vant

fac

tors

spe

cific

to

the

asse

t be

ing

valu

ed.

An

appr

opriat

e ra

te p

er s

quar

e m

etre

has

bee

n ap

plie

d to

th

e su

bjec

t as

set.

The

effec

tive

date

of th

e va

luat

ion

is 3

0 Ju

ne 2

014.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

35 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

4 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

6 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Med

ical

an

d N

on M

edic

al E

qu

ipm

ent

Art

wor

ks

For

all a

sset

s m

easu

red

at fai

r va

lue,

the

cur

rent

use

is c

onsi

dere

d th

e hi

ghes

t an

d be

st u

se.

(c)

Fair

val

ue

mea

sure

men

t h

iera

rch

y fo

r as

sets

as

at 3

0 J

un

e 2

01

5

Leve

l 1 (1

)Le

vel 2

(1)

Leve

l 3 (1

)

Lan

d a

t fa

ir v

alu

eN

on-s

peci

alis

ed la

nd1,

538

-

1,53

8

-

Spe

cial

ised

land

45,8

10

-

-

45,8

10

To

tal o

f la

nd

at

fair

val

ue

47,3

48

-

1,53

8

45

,810

Bu

ildin

gs

at f

air

valu

eSpe

cial

ised

bui

ldin

gs31

0,78

3

-

49,0

09

26

1,77

4

Tota

l of

bu

ildin

g a

t fa

ir v

alu

e31

0,78

3

-

49,0

09

26

1,77

4

Com

pu

ter

and

Com

mu

nic

atio

n a

t fa

ir v

alu

eCom

pute

r an

d Com

mun

icat

ion

at

fair v

alue

1,93

0

-

-

1,93

0

To

tal o

f co

mp

ute

r an

d c

omm

un

icat

ion

at

fair

val

ue

1,93

0

-

-

1,93

0

Furn

itu

re a

nd

Fit

tin

g a

t fa

ir v

alu

eFu

rnitu

re a

nd F

ittin

g at

fai

r va

lue

1,71

2

-

-

1,71

2

To

tal o

f fu

rnit

ure

an

d f

itti

ng

at

fair

val

ue

1,71

2

-

-

1,71

2

Non

Med

ical

eq

uip

men

t at

fai

r va

lue

Non

med

ical

Equ

ipm

ent

at fai

r va

lue

1,57

4

-

-

1,57

4

To

tal o

f N

on M

edic

al E

qu

ipm

ent

at f

air

valu

e1,

574

-

-

1,57

4

Mot

or V

ehic

les

at f

air

valu

eM

otor

Veh

icle

s at

fai

r va

lue(

ii)42

0

-

-

420

Tota

l mot

or v

ehic

les

at f

air

valu

e42

0

-

-

420

Med

ical

eq

uip

men

t at

fai

r va

lue

Med

ical

equ

ipm

ent

at fai

r va

lue

(iii

)16

,340

-

-

16,3

40

To

tal M

edic

al e

qu

ipm

ent

at f

air

valu

e16

,340

-

-

16,3

40

A

rtw

orks

at

fair

val

ue

Art

wor

ks (i

v)46

8

-

468

-

Tota

l Art

wor

k at

fai

r va

lue

468

-

468

-

Ass

ets

un

der

con

stru

ctio

n a

t fa

ir v

alu

eAss

ets

unde

r co

nstr

uctio

n11

,352

-

-

11,3

52

To

tal a

sset

s u

nd

er c

onst

ruct

ion

at

fair

val

ue

11,3

52

-

-

11,3

52

3

91

,92

7-

51

,01

53

40

,91

2

Car

ryin

g a

mou

nt

as

at 3

0 J

un

e 2

01

5Fa

ir v

alu

e m

easu

rem

ent

at e

nd

of

rep

orti

ng

per

iod

usi

ng

:

Ther

e ha

ve b

een

no t

rans

fers

bet

wee

n le

vels

dur

ing

the

period

.

(iii)

Non

med

ical

equ

ipm

ent

and

med

ical

equ

ipm

ent

is h

eld

at c

arry

ing

valu

e (d

epre

ciat

ed c

ost)

. W

hen

the

equi

pmen

t is

spe

cial

ised

in u

se,

such

tha

t it

is r

arel

y so

ld o

ther

tha

n as

par

t of

a g

oing

co

ncer

n, t

he d

epre

ciat

ed r

epla

cem

ent

cost

is u

sed

to e

stim

ate

the

fair v

alue

. U

nles

s th

ere

is m

arke

t ev

iden

ce t

hat

curr

ent

repl

acem

ent

cost

s ar

e si

gnifi

cant

ly d

iffer

ent

from

the

origi

nal a

cqui

sitio

n co

st,

it is

con

side

red

unlik

ely

that

dep

reci

ated

rep

lace

men

t co

st w

ill b

e m

ater

ially

diff

eren

t fr

om t

he e

xist

ing

carr

ying

val

ue.

Ther

e w

ere

no c

hang

es in

val

uatio

n te

chni

ques

thr

ough

out

the

period

to

30 J

une

2016

.

(iv)

For

art

wor

k, v

alua

tion

of t

he a

sset

s is

det

erm

ined

by

a co

mpa

riso

n to

sim

ilar

exam

ples

of th

e ar

tists

wor

k in

exi

sten

ce t

hrou

ghou

t Aus

tral

ia a

nd r

esea

rch

on p

rice

pai

d fo

r si

mila

r ex

ampl

es

offe

red

at a

uctio

n or

thr

ough

art

gal

leries

in r

ecen

t ye

ars.

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

36 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

7 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

(d)

Rec

onci

liati

on o

f Le

vel 3

fai

r va

lue

30

Ju

ne

20

16

Com

pu

ters

&

Com

mu

nic

atio

nFu

rnit

ure

&

Fitt

ing

sN

on M

edic

al

Equ

ipm

ent

Res

tate

d O

pen

ing

Bal

ance

45

,81

02

61

,77

41

,93

01

,71

21

,57

44

20

16

,34

01

1,3

52

34

0,9

12

Purc

hase

s /

(Dis

posa

ls)

-

-

59

6

93

199

81

1,

030

(1

0,62

7)

(8,6

28)

Tr

ansf

ers

In /

(O

ut)

of L

evel

3-

-

-

-

-

-

-

-

De p

reci

atio

n-

(1

6,03

2)

(969

)

(2

76)

(272

)

(145

)

(3,0

70)

-

(2

0,76

4)

-

S

ub

tota

l4

5,8

10

24

5,7

42

1,5

57

1,5

29

1,5

01

35

61

4,3

00

72

53

11

,52

0

Item

s re

cogn

ised

in o

ther

com

preh

ensi

ve in

com

e-

Rev

alua

tion

-

-

-

-

-

-

-

Clo

sin

g B

alan

ce4

5,8

10

24

5,7

42

1

,55

7

1

,52

9

1,5

01

3

56

14

,30

0

7

25

31

1,5

20

(d)

Rec

onci

liati

on o

f Le

vel 3

fai

r va

lue

30

Ju

ne

20

15

Op

enin

g B

alan

ce4

5,8

10

27

7,8

06

1

7,1

27

1

,54

2

1,3

61

1

,39

7

29

5

2

7,1

46

37

2,4

84

Pu

rcha

ses

/ (D

ispo

sals

)-

-

2

,40

61

,21

25

72

44

322

9

(1

6,27

0)

(11,

408)

Res

tate

men

t-

-

-

-

47

6

47

6

Tran

sfer

s In

/ (

Out

) of

Lev

el 3

Gai

ns o

r lo

sses

rec

o gni

sed

in n

et r

esul

t-

De p

reci

atio

n-

(1

6,03

2)

(3,1

93)

(824

)

(2

21)

(266

)

(104

)

-

(2

0,64

0)

Su

bto

tal

45

,81

02

61

,77

41

6,3

40

1,9

30

1,7

12

1,5

74

42

01

1,3

52

34

0,9

12

Item

s re

cogn

ised

in o

ther

com

preh

ensi

ve in

com

e-

Rev

alua

tion

-

-

-

-

-

-

-

S

ub

tota

l

Res

tate

d C

losi

ng

Bal

ance

45

,81

0

2

61

,77

4

16

,34

0

1,9

30

1

,71

2

1,5

74

4

20

11

,35

2

3

40

,91

2

Ther

e ha

ve b

een

no t

rans

fers

bet

wee

n le

vels

dur

ing

the

period

.

Ass

ets

un

der

co

nst

ruct

ion

Tota

lLa

nd

Bu

ildin

gs

Med

ical

equ

ipm

ent

Com

pu

ters

&

Com

mu

nic

atio

nFu

rnit

ure

&

Fitt

ing

sM

otor

Veh

icle

sN

on M

edic

al

Equ

ipm

ent

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

Tota

l

Ther

e ha

ve b

een

no t

rans

fers

bet

wee

n le

vels

dur

ing

the

period

.

Lan

dB

uild

ing

s

Med

ical

equ

ipm

ent

Ass

ets

un

der

co

nst

ruct

ion

Mot

or V

ehic

les

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

37 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

6 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

8 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

(e)

Des

crip

tion

of

sig

nif

ican

t u

nob

serv

able

inp

uts

to

Leve

l 3 v

alu

atio

ns:

Sp

ecia

lised

lan

d M

arke

t ap

proa

ch

Com

mun

ity S

ervi

ce O

blig

atio

n (C

SO

) ad

just

men

t 1

0 -

25%

(19

%)

(i)

A s

igni

fican

t in

crea

se o

r de

crea

se in

the

CSO

adj

ustm

ent

wou

ld r

esul

t in

a s

igni

fican

tly lo

wer

(hi

gher

) fa

ir v

alue

Non

- s

pec

ialis

ed la

nd

Mar

ket

appr

oach

N

/A

$1,

033

- $2

,291

/m2

($1,

750)

A

sig

nific

ant

incr

ease

or

decr

ease

in d

irec

t co

st p

er s

quar

e m

eter

ad

just

men

t w

ould

res

ult

in a

sig

nific

antly

hig

her

or lo

wer

fai

r va

lue

Sp

ecia

lised

bu

ildin

gs

Dep

reci

ated

rep

lace

men

t co

st

Direc

t co

st p

er s

quar

e m

etre

$

477

- $8

88/m

2 ($

583)

A

sig

nific

ant

incr

ease

or

decr

ease

in d

irec

t co

st p

er s

quar

e m

eter

ad

just

men

t w

ould

res

ult

in a

sig

nific

antly

hig

her

or lo

wer

fai

r va

lue

Use

ful l

ife o

f sp

ecia

lised

bui

ldin

gs

5 -

53

year

s (2

9 ye

ars)

A

sig

nific

ant

incr

ease

or

decr

ease

in t

he e

stim

ated

use

ful l

ife o

f th

e as

set

wou

ld r

esul

t in

a s

igni

fican

tly h

ighe

r or

low

er v

alua

tion.

Med

ical

eq

uip

men

t at

fai

r va

lue

Dep

reci

ated

rep

lace

men

t co

st

Cos

t pe

r un

it $

1,00

0 -

$1,1

16,0

00 (

$9,3

00)

Inc

reas

e (d

ecre

ase)

in g

ross

rep

lace

men

t co

st w

ould

res

ult

in a

si

gnifi

cant

ly h

ighe

r (l

ower

) fa

ir v

alue

Use

ful l

ife o

f m

edic

al e

quip

men

t 7

-10

year

s (8

yea

rs)

Inc

reas

e (d

ecre

ase)

in u

sefu

l life

wou

ld r

esul

t in

a s

igni

fican

tly h

ighe

r (l

ower

) fa

ir v

alue

Com

pu

ter

& C

omm

un

icat

ion

at

fair

val

ue

Dep

reci

ated

rep

lace

men

t co

st

Cos

t pe

r un

it $

800

- $2

77,8

00 (

$3,0

00)

A s

igni

fican

t in

crea

se o

r de

crea

se in

cos

t pe

r un

it w

ould

res

ult

in a

si

gnifi

cant

ly h

ighe

r or

low

er f

air

valu

e

Use

ful l

ife o

f PP

E 3

yea

rs

A s

igni

fican

t in

crea

se o

r de

crea

se in

the

est

imat

ed u

sefu

l life

of

the

asse

t w

ould

res

ult

in a

sig

nific

antly

hig

her

or lo

wer

val

uatio

n.

Furn

itu

re a

nd

Fit

tin

g a

t fa

ir v

alu

e D

epre

ciat

ed r

epla

cem

ent

cost

C

ost

per

unit

$1,

000

- $1

3,40

0 ($

9,00

0)

A s

igni

fican

t in

crea

se o

r de

crea

se in

cos

t pe

r un

it w

ould

res

ult

in a

si

gnifi

cant

ly h

ighe

r or

low

er f

air

valu

e

Use

ful l

ife o

f PP

E 7

-10

year

s (8

yea

rs)

A s

igni

fican

t in

crea

se o

r de

crea

se in

the

est

imat

ed u

sefu

l life

of

the

asse

t w

ould

res

ult

in a

sig

nific

antly

hig

her

or lo

wer

val

uatio

n.

Non

-Med

ical

eq

uip

men

t at

fai

r va

lue

Dep

reci

ated

rep

lace

men

t co

st

Cos

t pe

r un

it $

1,00

0 -

$484

,000

($6

,900

) A

sig

nific

ant

incr

ease

or

decr

ease

in c

ost

per

unit

wou

ld r

esul

t in

a

sign

ifica

ntly

hig

her

or lo

wer

fai

r va

lue

Use

ful l

ife o

f PP

E 7

-10

year

s (8

yea

rs)

A s

igni

fican

t in

crea

se o

r de

crea

se in

the

est

imat

ed u

sefu

l life

of

the

asse

t w

ould

res

ult

in a

sig

nific

antly

hig

her

or lo

wer

val

uatio

n.

Veh

icle

s D

epre

ciat

ed r

epla

cem

ent

cost

Cos

t pe

r un

it $

12,3

00-$

57,8

00 p

er u

nit

($24

,900

per

uni

t)

A s

igni

fican

t in

crea

se o

r de

crea

se in

cos

t pe

r un

it w

ould

res

ult

in a

si

gnifi

cant

ly h

ighe

r or

low

er f

air

valu

e

Use

ful l

ife o

f ve

hicl

es

4 y

ears

A

sig

nific

ant

incr

ease

or

decr

ease

in t

he e

stim

ated

use

ful l

ife o

f th

e as

set

wou

ld r

esul

t in

a s

igni

fican

tly h

ighe

r or

low

er v

alua

tion.

The

sign

ifica

nt u

nobs

erva

ble

inpu

ts h

ave

rem

aine

d un

chan

ged

from

201

6.

(i)

CSO

adj

ustm

ents

ran

ging

fro

m 1

0% t

o 25

% w

ere

appl

ied

to r

educ

e th

e m

arke

t ap

proa

ch v

alue

for

Nor

ther

n H

ealth

's s

peci

alis

ed la

nd,

with

the

wei

ghte

d av

erag

e 19

% r

educ

tion

appl

ied.

Not

e 1

0:

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t (c

onti

nu

ed)

Val

uat

ion

tec

hn

iqu

eS

ign

ific

ant

un

obse

rvab

le in

pu

tsR

ang

e (w

eig

hte

d a

vera

ge)

Sen

siti

vity

of

fair

val

ue

mea

sure

men

t to

ch

ang

es in

sig

nif

ican

tu

nob

serv

able

inp

uts

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

38 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

9 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Dev

elop

men

t Cos

ts C

apita

lised

4,68

7

4,35

6

Less

Acc

umul

ated

Am

ortis

atio

n4,

311

3,92

4

376

432

Com

pute

r Sof

twar

e -

Wor

k in

Pro

gres

s-

173

Tota

l In

tan

gib

le A

sset

s3

76

60

5

Dev

elop

men

t To

tal

Cos

ts$

'00

0$

'00

0

Bal

ance

at

1 J

uly

20

14

447

44

7

Add

ition

s18

1

181

Net

Tra

nsfe

rs b

etw

een

clas

ses

173

173

Am

ortis

atio

n (n

ote

4)(1

96)

(1

96)

B

alan

ce a

t 1

Ju

ly 2

01

56

05

60

5

Add

ition

s15

9

159

Am

ortis

atio

n (n

ote

4)(3

88)

(3

88)

B

alan

ce a

t 3

0 J

un

e 2

01

63

76

37

6

-

-

Impa

irm

ent

loss

es a

re in

clud

ed in

the

line

item

'net

gai

n/(l

oss)

on

non-

finan

cial

ass

ets'

in t

he c

ompr

ehen

sive

ope

ratin

g st

atem

ent.

Rec

onci

liatio

n of

the

car

ryin

g am

ount

of in

tang

ible

ass

ets

at t

he b

egin

ning

and

end

of th

e pr

evio

us a

nd c

urre

nt f

inan

cial

yea

r:

Not

e 1

1:

Inta

ng

ible

Ass

ets

The

cons

umpt

ion

of s

epar

atel

y ac

quired

inta

ngib

le a

sset

s is

incl

uded

in t

he 'a

mor

tisat

ion'

line

item

, w

here

the

con

sum

ptio

n of

the

inte

rnal

ly g

ener

ated

ass

ets

is in

clud

ed

in 'n

et g

ain/

(los

s) o

n no

n-fin

anci

al a

sset

s' in

the

com

preh

ensi

ve o

pera

ting

stat

emen

t.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

39 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 3

8 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

0 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Par

ent

Enti

tyP

aren

t En

tity

Con

sol'd

Con

sol'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

CU

RR

ENT

Con

trac

tual

Trad

e Cre

dito

rs (i

) 4,

041

4,55

9

4,04

1

4,

559

Acc

rued

Ex p

ense

s10

,011

8,

167

10,0

24

8,

242

Sal

arie

s an

d W

a ges

Rel

ated

Cre

dito

rs4,

993

6,99

4

4,99

3

6,99

4

Inte

r H

ealth

Ser

vice

s4,

969

3,89

9

5,08

1

3,97

1

Oth

e r44

2

46

1

44

5

47

0

S

tatu

tor y

DH

HS

(ii)

1,

187

1,18

7

1,18

7

2,

359

1,18

7

1,18

7

1,18

7

2,35

9

TOTA

L C

UR

REN

T 2

5,6

43

25

,77

12

5,7

71

26

,59

5

TOTA

L P

AY

AB

LES

25

,64

32

5,7

71

25

,77

12

6,5

95

(i)

Ave

rage

Nor

ther

n H

ealth

pay

men

t te

rms

are

45 d

ays.

No

inte

rest

is c

harg

ed o

n Tr

ade

Cre

dito

rs.

0

(a)

Mat

uri

ty a

nal

ysis

of

Pay

able

sPl

ease

ref

er t

o N

ote

19d

for

anal

ysis

of

the

agei

ng o

f pa

yabl

es.

1

(b)

Nat

ure

an

d e

xten

t of

ris

k ar

isin

g f

rom

Pay

able

sPl

ease

ref

er t

o N

ote

19d

and

Not

e 19

e fo

r an

alys

is o

n th

e na

ture

and

ext

ent

of r

isks

arisi

ng f

rom

pay

able

s.50

5

Not

e 1

2:

Pay

able

s

(ii)

Ter

ms

and

cond

ition

s of

am

ount

s pa

yabl

e to

DH

HS v

ary

acco

rdin

g to

the

par

ticul

ar a

gree

men

t w

ith t

he D

epar

tmen

t.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

40 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

1 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Par

ent

Enti

tyP

aren

t En

tity

Con

sol'd

Con

sol'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

CU

RR

ENT

Upf

ront

cap

ital f

undi

ng a

ssoc

iate

d w

ith s

ecur

ity a

nd c

ar p

arki

ng s

ervi

ce c

ontr

acts

281

28

3

28

1

28

3

To

tal A

ust

ralia

n D

olla

r B

orro

win

gs

28

128

3

2

81

28

3

TOTA

L C

UR

REN

T 2

81

28

3

Upf

ront

cap

ital f

undi

ng a

ssoc

iate

d w

ith s

ecur

ity a

nd c

ar p

arki

ng s

ervi

ce c

ontr

acts

181

48

7

18

1

48

7

To

tal A

ust

ralia

n D

olla

r B

orro

win

gs

18

1

-1

81

48

7-

TO

TAL

NO

N C

UR

REN

T 4

62

7

70

18

14

87

TOTA

L B

OR

RO

WIN

GS

46

2

77

04

62

77

0

(a)

Mat

uri

ty a

nal

ysis

of

Bor

row

ing

s0

Pl

ease

ref

er t

o N

ote

19d

for

anal

ysis

on

the

agei

ng o

f bo

rrow

ings

.

(b)

Nat

ure

an

d e

xten

t of

ris

k ar

isin

g f

rom

Bor

row

ing

sPl

ease

ref

er t

o N

ote

19d

and

Not

e19e

for

ana

lysi

s on

the

nat

ure

and

exte

nt o

f risk

s ar

isin

g fr

om b

orro

win

gs.

1

(c)

Def

ault

s an

d b

reac

hes

1

Dur

ing

the

curr

ent

and

prio

r ye

ar,

ther

e w

ere

no d

efau

lts n

or b

reac

hes

of a

ny o

f th

e bo

rrow

ings

.

Not

e 1

3:

Bor

row

ing

s

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

41 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

0 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

2 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Par

ent

Enti

tyP

aren

t En

tity

Con

sol'd

Con

sol'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

Cu

rren

t P

rovi

sion

sEm

ploy

ee B

enef

its

(Not

e 14

(a))

Ann

ual L

eave

(N

ote

14(a

))-

Unc

ondi

tiona

l and

ex p

ecte

d to

be

sett

led

with

in 1

2 m

onth

s (i

i)18

,637

17,6

76

18

,637

17

,676

-

Unc

ondi

tiona

l and

exp

ecte

d to

be

sett

led

afte

r 12

mon

ths

(ii)

3,07

8

3,

011

3,07

8

3,01

1

Long

Ser

vice

Lea

ve-

Unc

ondi

tiona

l and

exp

ecte

d to

be

sett

led

with

in 1

2 m

onth

s (i

i)3,

966

3,

377

3,96

6

3,

377

- U

ncon

ditio

nal a

nd e

xpec

ted

to b

e se

ttle

d af

ter

12 m

onth

s (i

i)26

,784

21,0

10

26,7

84

21,0

10

Acc

rued

Sal

arie

s an

d W

ages

9,04

0

5,61

1

9,

040

5,61

1

6

1,5

06

50

,68

56

1,5

06

50

,68

5Pr

ovis

ions

rel

ated

to

empl

oyee

ben

efit

on-c

osts

- U

ncon

ditio

nal a

nd e

x pec

ted

to b

e se

ttle

d w

ithin

12

mon

ths

(nom

inal

val

ue)

(ii)

2,29

7

2,

147

2,29

7

2,14

7

- U

ncon

ditio

nal a

nd e

xpec

ted

to b

e se

ttle

d af

ter

12 m

onth

s (p

rese

nt v

alue

) (i

i)3,

129

2,

450

3,12

9

2,45

0

5,4

26

4,5

97

5,42

7

4,59

7

Tota

l Cu

rren

t P

rovi

sion

s6

6,9

32

55

,28

26

6,9

32

55

,28

2

Non

-Cu

rren

t P

rovi

sion

sEm

ploy

ee B

enef

its (

i) (

Not

e 14

(a))

9,38

4

8,

492

9,38

4

8,49

2

Prov

isio

ns r

elat

ed t

o em

ploy

ee b

enef

it on

-cos

ts (

Not

e 14

(a)

and

Not

e 14

(b))

984

866

98

4

86

6

Tota

l Non

-Cu

rren

t P

rovi

sion

s1

0,3

68

9,3

58

10

,36

89

,35

8

TOTA

L P

RO

VIS

ION

S7

7,3

00

64

,64

07

7,3

00

64

,64

0

(a)

Emp

loye

e B

enef

its

and

Rel

ated

On

-Cos

tsC

urr

ent

Emp

loye

e B

enef

its

and

Rel

ated

On

-cos

tsU

ncon

ditio

nal L

SL

entit

lem

ents

33,9

75

26,8

74

33

,975

26

,874

Ann

ual l

eave

ent

itlem

ents

23,9

17

22,7

97

23

,917

22

,797

Acc

rued

Sal

arie

s an

d W

ages

8,60

1

5,

204

8,59

9

5,20

4

Acc

rued

Day

s O

ff44

1

40

7

441

40

7

Non

-Cu

rren

t Em

plo

yee

Ben

efit

s an

d r

elat

ed o

n-c

osts

Con

ditio

nal L

ong

Ser

vice

Lea

ve e

ntitl

emen

ts (

pres

ent

valu

e)10

,368

9,35

8

10,3

68

9,

358

Tota

l Em

plo

yee

Ben

efit

s an

d R

elat

ed O

n-C

osts

77

,30

26

4,6

40

77

,30

06

4,6

40

Not

e 1

4:

Pro

visi

ons

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

42 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

3 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

(b)

Mov

emen

ts in

pro

visi

ons

Mov

emen

t in

Lon

g S

ervi

ce L

eave

(C

urr

ent

and

Non

-Cu

rren

t):

Bal

ance

at

star

t of

yea

r3

3,4

53

36

,23

13

3,4

53

Prov

isio

n m

ade

during

the

yea

r -

Rev

alua

tions

790

5,86

1

790

- E

xpen

se r

ecog

nisi

ng e

mpl

oyee

ser

vice

5,71

0

6,46

2

5,71

0

Set

tlem

ent

mad

e du

ring

the

yea

r(3

,722

)

(4,2

11)

(3,7

22)

Bal

ance

at

end

of

year

36

,23

1

4

4,3

43

36

,23

1

(ii)

The

am

ount

s di

sclo

sed

are

at p

rese

nt v

alue

s.

(i)

Empl

oyee

ben

efits

con

sist

of Ann

ual L

eave

and

Lon

g Ser

vice

Lea

ve a

ccru

ed b

y em

ploy

ees

as w

ell a

s ac

crue

d Sal

arie

s an

d W

ages

as

at 3

0 Ju

ne

2016

. O

n-co

sts

such

as

payr

oll t

ax a

nd w

orke

r's

com

pens

atio

n in

sura

nce

are

not

empl

oyee

ben

efits

and

are

ref

lect

ed a

s a

sepa

rate

pro

visi

on.

Not

e 1

4:

Pro

visi

ons

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

43 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

4 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

Con

sol'd

Con

sol'd

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

(i)

Def

ined

ben

efit

pla

ns:

Firs

t Sta

te S

u per

(fo

rmer

ly H

ealth

Sup

er)

288

34

8

22

13

Def

ined

con

trib

uti

on p

lan

s:Fi

rst

Sta

te S

u per

(fo

rmer

ly H

ealth

Sup

er)

12,7

96

13

,560

1,

352

647

H

ESTA

7,19

4

6,72

5

817

60

1

O

ther

420

43

0

27

27

20

,69

72

1,0

63

2,2

18

1

,28

8

(i)

The

base

s fo

r de

term

inin

g th

e le

vel o

f co

ntribu

tions

is d

eter

min

ed b

y th

e va

riou

s ac

tuar

ies

of t

he d

efin

ed b

enef

it su

pera

nnua

tion

plan

s

Par

ent

Enti

ty0

Con

sol'd

Con

sol'd

20

16

02

01

62

01

5$

'00

0$

0$

'00

0$

'00

0C

UR

REN

TPa

tient

Mon

ies

Hel

d in

Tru

st (

Hel

d in

Cas

h)7

6

7

6

Inco

me

in A

dvan

ce1,

741

930

1,

741

931

TO

TAL

CU

RR

ENT

OTH

ER L

IAB

ILIT

IES

1,7

48

9

36

1,7

48

93

7

NO

N C

UR

REN

TIn

com

e in

Adv

ance

14,5

52

15

,438

14

,552

15

,438

TO

TAL

NO

N C

UR

REN

T O

THER

LIA

BIL

ITIE

S1

4,5

52

15

,43

81

4,5

52

15

,43

8

TOTA

L O

THER

LIA

BIL

ITIE

S1

6,3

00

16

,37

41

6,3

00

16

,37

5

Not

e 1

6:

Oth

er L

iab

iliti

es

Not

e 1

5:

Su

per

ann

uat

ion

Pai

d C

ontr

ibu

tion

for

th

e ye

arC

ontr

ibu

tion

Ou

tsta

nd

ing

at

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

44 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

5 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

PP

Con

sol'd

Con

sol'd

20

16

20

15

$'0

000

$'0

00

$'0

00

(a)

Su

rplu

ses

Pro

per

ty,

Pla

nt

and

Eq

uip

men

t R

eval

uat

ion

Su

rplu

sBal

ance

at

the

begi

nnin

g of

the

rep

ortin

g pe

riod

200,

146

20

0,14

6

Rev

alua

tion

Incr

emen

t/(D

ecre

men

ts)

during

the

per

iod

- L

and

-

-

-

Bui

ldin

gs-

-

B

alan

ce a

t th

e en

d o

f th

e re

por

tin

gp

erio

d*

20

0,1

46

20

0,1

46

* Rep

rese

nted

by:

-

Lan

d39

,004

39,0

04

- B

uild

ings

161,

142

16

1,14

2

20

0,1

46

20

0,1

46

Res

tric

ted

Sp

ecif

ic P

urp

ose

Su

rplu

sBal

ance

at

the

begi

nnin

g of

the

rep

ortin

g pe

riod

4,53

2

3,93

5

Tr

ansf

er t

o an

d fr

om R

estr

icte

d Spe

cific

Pur

pose

Sur

plus

409

597

Bal

ance

at

the

end

of

the

rep

orti

ng

per

iod

4,9

41

4

,53

2

Ca p

ital

Pro

ject

s R

eser

ve S

urp

lus

Bal

ance

at

the

begi

nnin

g of

the

rep

ortin

g pe

riod

-

3,30

0

Tran

sfer

to

and

from

Ca p

ital P

roje

cts

Res

erve

Sur

plus

-

(3,3

00)

Bal

ance

at

the

end

of

the

rep

orti

ng

per

iod

--

Tota

l Su

r plu

ses

20

5,0

87

20

4,6

78

(b)

Con

trib

ute

d C

apit

alBal

ance

at

the

begi

nnin

g of

the

rep

ortin

g pe

riod

161,

634

16

1,63

4

Cap

ital c

ontr

ibut

ion

rece

ived

fro

m V

icto

rian

Gov

ernm

ent

-

-

Bal

ance

at

the

end

of

the

rep

orti

ng

per

iod

16

1,6

34

16

1,6

34

(c)

Acc

um

ula

ted

Def

icit

sBal

ance

at

the

begi

nnin

g of

the

rep

ortin

g pe

riod

(57,

420)

(4

1,51

2)

Net

Res

ult

for

the

Year

4,32

5

(18,

611)

Tr

ansf

er t

o an

d fr

om C

apita

l Pro

ject

s Res

erve

Sur

plus

-

3,30

0

Tran

sfer

to

and

from

Res

tric

ted

Spe

cific

Pur

pose

Sur

plus

(409

)

(597

)

Bal

ance

at

the

end

of

the

rep

orti

ng

per

iod

(53

,50

4)

(57

,42

0)

Tota

l Eq

uit

y at

en

d o

f fi

nan

cial

yea

r3

13

,21

73

08

,89

3

(1)

The

Prop

erty

, Pl

ant

and

Equi

pmen

t Ass

et R

eval

uatio

n Sur

plus

arise

s on

the

rev

alua

tion

of p

rope

rty,

pla

nt a

nd e

quip

men

t.

Not

e 1

7:

Equ

ity

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

45 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

4 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

6 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Net

Res

ult

for

th

e p

erio

d4,

325

(18,

611)

Non

-cas

h m

ovem

ents

Dep

reci

atio

n an

d Am

ortis

atio

n22

,925

22,0

32

Prov

isio

n fo

r D

oubt

ful D

ebts

1,12

1

666

Am

ortis

atio

n of

Pre

paid

Ren

t(6

29)

(342

)

Cha

nge

in I

nven

tories

(426

)

(549

)

Res

ourc

es/A

sset

s Pr

ovid

ed/(

Rec

eive

d) F

ree

of C

harg

e(1

2)

-

Mov

emen

ts in

clu

ded

in in

vest

ing

an

d f

inan

cin

g a

ctiv

itie

sN

et (

Gai

n)/L

oss

from

Sal

e of

Pla

nt a

nd E

quip

men

t84

(56)

Mov

emen

ts in

ass

ets

and

liab

iliti

esCha

nge

in O

pera

ting

Ass

ets

and

Liab

ilitie

s D

ecre

ase

in C

urre

nt R

ecei

vabl

es(2

,373

)

277

(Inc

reas

e) in

Non

Cur

rent

Rec

eiva

bles

(2,4

10)

(700

)

(

Incr

ease

)/D

ecre

ase

in O

ther

Ass

ets

(617

)

(761

)

(

Dec

reas

e) /

Inc

reas

e in

Pay

able

s3,

057

(305

)

I

ncre

ase

in E

mpl

oyee

Ben

efits

9,77

1

2,54

8

(

Dec

reas

e) /

Inc

reas

e in

Oth

er L

iabi

litie

s21

6

1,88

6

NET

CA

SH

IN

FLO

W F

RO

M O

PER

ATI

NG

AC

TIV

ITIE

S3

5,0

32

6,0

85

Not

e 1

8:

Rec

onci

liati

on o

f N

et R

esu

lt f

or t

he

Yea

r to

Net

Cas

h I

nfl

ow/

(Ou

tflo

w)

from

O

per

atin

g A

ctiv

itie

s

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

46 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

7 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

ort h

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

(a)

Fin

anci

al R

isk

Man

a gem

ent

Ob

ject

ives

an

d P

olic

ies

Nor

ther

n H

ealth

's p

rinc

ipal

fin

anci

al in

stru

men

ts c

ompr

ise

of:

- Cas

h Ass

ets

- Te

rm D

epos

its -

Rec

eiva

bles

(ex

clud

ing

stat

utor

y re

ceiv

able

s) -

Pa

yabl

es (

excl

udin

g st

atut

ory

paya

bles

)

Cat

e gor

isat

ion

of

fin

anci

al in

stru

men

ts

Not

e

Con

trac

tua l

fin

anci

al a

sset

s -

rece

ivab

les

Con

trac

tua l

fin

anci

al a

sset

s -

rece

ivab

les

20

16

20

15

$'0

00

$'0

00

Con

trac

tual

Fin

anci

al A

sset

sCas

h an

d ca

sh e

quiv

alen

ts (

incl

udin

g m

onie

s he

ld in

tru

st)

619

,660

8,06

1

Rec

eiva

bles

- Tr

ade

Deb

tors

73 ,

030

1,30

5

- O

ther

Rec

eiva

bles

74 ,

750

5,88

3

Tota

l Rec

eiva

ble

s7

,78

07

,18

8To

tal F

inan

cial

Ass

ets

(i)

27

,44

01

5,2

49

Con

trac

tua l

fin

anci

al li

abili

ties

at

am

orti

sed

cos

t

Con

trac

tua l

fin

anci

al li

abili

ties

at

am

orti

sed

cos

t2

01

62

01

5$

'00

0$

'00

0Fi

nan

cial

Lia

bili

ties

Paya

bles

1224

,584

24,2

36

Bor

row

ings

1346

2

770

Oth

er L

iabi

litie

s16

- M

onie

s H

eld

in T

rust

7

6

- In

com

e in

Adv

ance

16,2

93

16,3

69

Tota

l Oth

er L

iab

iliti

es1

6,3

00

16

,37

5To

tal F

inan

cial

Lia

bili

ties

(ii)

41

,34

6

41

,38

1

(i)

The

tota

l am

ount

of fin

anci

al a

sset

s di

sclo

sed

here

exc

lude

s st

atut

ory

rece

ivab

les

(i.e

. G

ST

inpu

t ta

x cr

edit

reco

vera

ble)

(ii)

The

tot

al a

mou

nt o

f fin

anci

al li

abili

ties

disc

lose

d he

re e

xclu

des

stat

utor

y pa

yabl

es (

i.e.

Taxe

s pa

yabl

es)

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

Det

ails

of th

e si

gnifi

cant

acc

ount

ing

polic

ies

and

met

hods

ado

pted

incl

udin

g th

e ba

sis

of m

easu

rem

ent

and

the

basi

s on

whi

ch in

com

e an

d ex

pens

es a

re r

ecog

nise

d, w

ith

resp

ect

to e

ach

clas

s of

fin

anci

al a

sset

, fin

anci

al li

abili

ty a

nd e

quity

inst

rum

ent

are

prov

ided

in N

ote

1 to

the

fin

anci

al s

tate

men

ts.

The

purp

ose

of h

oldi

ng fin

anci

al in

stru

men

ts is

to

prud

entia

lly o

ptim

ise

Nor

ther

n H

ealth

's fin

anci

al r

esou

rces

with

in t

he le

gisl

ativ

e an

d re

gula

tory

par

amet

ers.

Nor

ther

n H

ealth

's m

ain

finan

cial

ris

ks in

clud

e cr

edit

risk

, liq

uidi

ty r

isk

and

inte

rest

rat

e risk

. N

orth

ern

Hea

lth m

anag

es t

hese

fin

anci

al r

isks

in a

ccor

danc

e w

ith it

s fin

anci

al

risk

man

a gem

ent

polic

y.N

orth

ern

Hea

lth u

ses

differ

ent

met

hods

to

mea

sure

and

man

age

the

differ

ent

risk

s to

whi

ch it

is e

xpos

ed.

Ove

rall

acco

unta

bilit

y fo

r th

e go

vern

ance

of fin

anci

al r

isks

res

ts

with

the

Aud

it an

d Ris

k Com

mitt

ee o

f th

e N

orth

ern

Hea

lth.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

47 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

6 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

9 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

ort h

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

(b)

Net

hol

din

g g

ain

/(l

oss)

on

fin

anci

al in

stru

men

ts b

y ca

teg

ory

Tota

l In

tere

st

Inco

me

/

(exp

ense

)

Tota

l In

tere

st

Inco

me

/

(exp

ense

)2

01

62

01

5$

'00

0$

'00

0Fi

nan

cial

Ass

ets

Cas

h an

d ca

sh e

quiv

alen

ts (i

)91

8

933

Tota

l Fin

anci

al A

sset

s9

18

93

3

Fin

anci

al L

iab

iliti

e sBor

row

ings

(ii)

27

17

Tota

l Fin

anci

al L

iab

iliti

es2

7

17

(ii)

For

bor

row

ings

, th

e ne

t ga

in o

r lo

ss is

cal

cula

ted

by t

akin

g th

e in

tere

st e

xpen

se,

plus

or

min

us for

eign

exc

hang

e ga

ins

or lo

sses

arisi

ng fro

m t

he r

eval

uatio

n of

fin

anci

al li

abili

ties

mea

sure

d at

am

ortis

ed c

ost.

(i)

For

cash

and

cas

h eq

uiva

lent

s, lo

ans

or r

ecei

vabl

es,

the

net

gain

or

loss

is c

alcu

late

d by

tak

ing

the

mov

emen

t in

fai

r va

lue

of t

he a

sset

s, t

he in

tere

st r

even

ue,

plus

or

min

us for

eign

exc

hang

e ga

ins

or lo

sses

arisi

ng fro

m r

eval

uatio

n of

the

fin

anci

al a

sset

s, a

nd m

inus

any

impa

irm

ent

reco

gnis

ed in

the

net

res

ult.

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

(co

nti

nu

ed)

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

48 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

9 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

(c)

Cre

dit

Ris

k

Cre

dit

qu

alit

y of

con

trac

tual

fin

anci

al a

sset

s th

at a

re n

eith

er p

ast

du

e n

or im

pai

red

Fin

anci

alIn

stit

uti

ons

(A1

+ C

red

it

Rat

ing

)

Gov

ern

men

tA

gen

cies

(A

AA

C

red

it R

atin

g)

Gov

ern

men

tA

gen

cies

(B

BB

C

red

it R

atin

g)

Oth

erIn

stit

uti

ons

(min

BB

Cre

dit

R

atin

g)

Oth

er F

inan

cial

A

sset

sTo

tal

20

16

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s19

,631

-

-

29

19,6

60

Rec

eiva

bles

(i)

-

Tra

de d

ebto

rs-

-

-

3,03

0

3,03

0

- O

ther

rec

eiva

bles

-

-

-

4,75

0

4,75

0

Tota

l Fin

anci

al A

sset

s1

9,6

31

-

-

7

,80

9

2

7,4

40

- -

20

15

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s8,

033

-

-

28

8,06

1

Rec

eiva

bles

(i)

-

Tra

de d

ebto

rs-

-

-

1,30

5

1,30

5

- O

ther

rec

eiva

bles

-

-

-

5,88

3

5,88

3

Tota

l Fin

anci

al A

sset

s8

,03

3

-

-

7

,21

6

1

5,2

49

(i)

The

tota

l am

ount

s di

sclo

sed

abov

e ex

clud

es s

tatu

tory

am

ount

s (e

. g.

amou

nts

owin

g fr

om V

icto

rian

Gov

ernm

ent

and

GST

inpu

t ta

x cr

edits

rec

over

able

).

It is

impr

actic

al f

or N

orth

ern

Hea

lth t

o di

sclo

se c

redi

t ra

tings

in r

espe

ct o

f re

ceiv

able

s. C

onse

quen

tly r

ecei

vabl

es a

re d

iscl

osed

und

er "

Oth

er"

cate

gory

.

Prov

isio

n of

impa

irm

ent

for

cont

ract

ual f

inan

cial

ass

ets

is r

ecog

nise

d w

hen

ther

e is

obj

ectiv

e ev

iden

ce t

hat

Nor

ther

n H

ealth

will

not

be

able

to

colle

ct a

rec

eiva

ble.

Obj

ectiv

e ev

iden

ce in

clud

es fin

anci

al

diff

icul

ties

of t

he d

ebto

r, d

efau

lt pa

ymen

ts,

debt

s w

hich

are

mor

e th

an 6

0 da

ys o

verd

ue,

and

chan

ges

in d

ebto

r cr

edit

ratin

gs.

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

(co

nti

nu

ed)

Exce

pt a

s ot

herw

ise

deta

iled

in t

he f

ollo

win

g ta

ble,

the

car

ryin

g am

ount

of

cont

ract

ual f

inan

cial

ass

ets

reco

rded

in t

he f

inan

cial

sta

tem

ents

, ne

t of

any

allo

wan

ces

for

loss

es,

repr

esen

ts N

orth

ern

Hea

lth’s

max

imum

exp

osur

e to

cre

dit

risk

with

out

taki

ng a

ccou

nt o

f th

e va

lue

of a

ny c

olla

tera

l obt

aine

d.

Cre

dit

risk

arise

s fr

om t

he c

ontr

actu

al f

inan

cial

ass

ets

of N

orth

ern

Hea

lth,

whi

ch c

ompr

ise

cash

and

dep

osits

and

non

-sta

tuto

ry r

ecei

vabl

es,

Nor

ther

n H

ealth

’s e

xpos

ure

to c

redi

t risk

arise

s fr

om t

he

pote

ntia

l def

ault

of a

cou

nter

par

ty o

n th

eir

cont

ract

ual o

blig

atio

ns r

esul

ting

in f

inan

cial

loss

to

Nor

ther

n H

ealth

. Cre

dit

risk

is m

easu

red

at f

air

valu

e an

d is

mon

itore

d on

a r

egul

ar b

asis

.

Cre

dit

risk

ass

ocia

ted

with

Nor

ther

n H

ealth

's c

ontr

actu

al f

inan

cial

ass

ets

is m

inim

al b

ecau

se t

he m

ain

debt

or is

the

Vic

torian

Gov

ernm

ent.

For

deb

tors

oth

er t

han

the

Gov

ernm

ent,

it is

Nor

ther

n H

ealth

's p

olic

y to

onl

y de

al w

ith e

ntiti

es w

ith h

igh

cred

it ra

tings

of

a m

inim

um T

ripl

e-B r

atin

g an

d to

obt

ain

suff

icie

nt c

olla

tera

l or

cred

it en

hanc

emen

ts,

whe

re a

ppro

pria

te.

In a

dditi

on,

Nor

ther

n H

ealth

doe

s no

t en

gage

in h

edgi

ng f

or it

s co

ntra

ctua

l fin

anci

al a

sset

s an

d m

ainl

y ob

tain

s co

ntra

ctua

l fin

anci

al a

sset

s th

at a

re o

n fix

ed in

tere

st,

exce

pt f

or c

ash

asse

ts,

whi

ch a

re

mai

nly

cash

at

bank

. As

with

the

pol

icy

for

debt

ors,

Nor

ther

n H

ealth

's p

olic

y is

to

only

dea

l with

ban

ks w

ith h

igh

cred

it ra

tings

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

49 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 4

9 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

0 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

(co

nti

nu

ed)

(c)

Cre

dit

Ris

k (c

onti

nu

ed)

Ag

ein

g a

nal

ysis

of

fin

anci

al a

sset

s as

at

30

Ju

ne

Less

th

an 1

M

onth

1-3

Mon

ths

3 m

onth

s -

1

Yea

r1

-5 Y

ears

20

16

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s19

,660

19

,660

-

-

-

-

-

Rec

eiva

bles

(i)

- T

rade

deb

tors

3,03

0

2,16

3

739

79

49

-

-

-

Oth

er r

ecei

vabl

es4,

750

2,00

5

1,92

9

740

31

45

-

Tota

l Fin

anci

al A

sset

s2

7,4

40

2

3,8

28

2

,66

8

8

19

8

0

45

-

20

15

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s8,

061

8,06

1

-

-

-

-

-

Rec

eiva

bles

(i)

-

Tra

de d

ebto

rs1,

305

1,04

7

140

11

8

-

-

-

-

Oth

er r

ecei

vabl

es5,

883

3,45

3

1,20

9

1,05

7

101

64

-

Tota

l Fin

anci

al A

sset

s1

5,2

49

1

2,5

61

1

,34

9

1

,17

5

1

01

6

4

-

Ther

e ar

e no

fin

anci

al a

sset

s th

at h

ave

had

thei

r te

rms

rene

gotia

ted

so a

s to

pre

vent

the

m f

rom

bei

ng p

ast

due

or im

paired

, an

d th

ey a

re s

tate

d at

the

car

ryin

g am

ount

s as

indi

cate

d. T

he a

gein

g an

alys

is t

able

abo

ve d

iscl

oses

the

age

ing

only

of

cont

ract

ual f

inan

cial

ass

ets

that

are

pas

t du

e bu

t no

t im

paired

.

Pas

t D

ue

Bu

t N

ot I

mp

aire

dN

ot P

ast

Du

e an

d N

ot

Imp

aire

d

Imp

aire

dFi

nan

cial

Ass

ets

Ther

e ar

e no

mat

eria

l fin

anci

al a

sset

s w

hich

are

indi

vidu

ally

det

erm

ined

to

be im

paired

. Cur

rent

ly N

orth

ern

Hea

lth d

oes

not

hold

any

col

late

ral a

s se

curity

nor

cre

dit

enha

ncem

ents

rel

atin

g to

any

of

its f

inan

cial

ass

ets.

Con

trac

tual

fin

anci

al a

sset

s th

at a

re e

ith

er p

ast

du

e or

imp

aire

d

(i)

Age

ing

anal

ysis

of

finan

cial

ass

ets

excl

udes

sta

tuto

ry f

inan

cial

ass

ets

(i.e

. G

ST

inpu

t ta

x cr

edit)

Con

sol'd

Car

ryin

gA

mou

nt

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

50 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

1 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

(d)

Liq

uid

ity

Ris

k

Nor

ther

n H

ealth

's m

axim

um e

xpos

ure

to li

quid

ity r

isk

is t

he c

arry

ing

amou

nts

of f

inan

cial

liab

ilitie

s as

dis

clos

ed o

n th

e ba

lanc

e sh

eet.

Car

ryin

gA

mou

nt

Nom

inal

Am

oun

tLe

ss t

han

1

Mon

th1

-3 M

onth

s 3

mon

ths

- 1

Y

ear

1-5

Yea

rs

20

16

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Fin

anci

al L

iab

iliti

esPa

yabl

es24

,584

24

,584

18

,196

5,

975

411

-

Bor

row

ings

462

46

2

23

47

211

18

1

O

ther

Fin

anci

al L

iabi

litie

s (i

) 16

,300

16

,300

83

8

18

9

71

4

14

,559

To

tal F

inan

cial

Lia

bili

ties

41

,34

6

41

,34

6

19

,05

7

6,2

11

1,3

36

14

,74

0

20

15

Fin

anci

al L

iab

iliti

es-

Pa

yabl

es24

,236

24

,236

17

,897

6,

338

-

-

Bor

row

ings

770

77

0

25

49

222

47

4

O

ther

Fin

anci

al L

iabi

litie

s (i

) 16

,375

16

,375

-

123

81

6

15

,436

To

tal F

inan

cial

Lia

bili

ties

41

,38

1

41

,38

1

17

,92

2

6,5

11

1,0

38

15

,91

0

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

(co

nti

nu

ed)

Mat

uri

ty D

ates

The

follo

win

g ta

ble

disc

lose

s th

e co

ntra

ctua

l mat

urity

ana

lysi

s fo

r N

orth

ern

Hea

lth's

fin

anci

al li

abili

ties.

For

inte

rest

rat

es a

pplic

able

to

each

cla

ss o

f lia

bilit

y re

fer

to in

divi

dual

not

es t

o th

e fin

anci

al

stat

emen

ts.

Mat

uri

ty a

nal

ysis

of

fin

anci

al li

abili

ties

as

at 3

0 J

un

e

Liqu

idity

ris

k is

the

ris

k th

at N

orth

ern

Hea

lth w

ould

be

unab

le t

o m

eet

its f

inan

cial

obl

igat

ions

as

and

whe

n th

ey f

all d

ue.

Ave

rage

Nor

ther

n H

ealth

pay

men

t te

rms

are

45 d

ays.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

51 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

0 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

2 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

(e)

Mar

ket

Ris

k

Cu

rren

cy R

isk

Inte

rest

Rate

Ris

k

0In

tere

st R

ate

Exp

osu

re o

f Fi

nan

cial

Ass

ets

and

Lia

bili

ties

as

at 3

0 J

un

eW

eig

hte

dC

arry

ing

Ave

rag

eA

mou

nt

Fixe

dV

aria

ble

Non

-Ef

fect

ive

Inte

rest

Inte

rest

Inte

rest

Inte

rest

Rat

eR

ate

Bea

rin

g2

01

6R

ate

(%)

$'0

00

$'0

00

$'0

00

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s2.

4619

,660

-

19

,631

29

Rec

eiva

bles

(i)

- T

rade

deb

tors

0.00

3,03

0

-

-

3,

030

- O

ther

rec

eiva

bles

0.00

4,75

0

-

-

4,

750

Oth

er fin

anci

al a

sset

s0.

00-

-

-

-

27

,44

0-

19

,63

17

,80

9Fi

nan

cial

Lia

bili

tie s

Paya

bles

(i)

0.00

24,5

84

-

-

24

,584

Bor

row

ings

4.39

462

46

2

-

-

Oth

er fin

anci

al li

abili

ties

0.00

16,3

00

-

-

16

,300

41

,34

64

62

-4

0,8

84

20

15

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s2.

868,

061

-

8,

033

28

Rec

eiva

bles

(i)

- Tr

ade

Deb

tors

0.00

1,30

5

-

-

1,

305

- O

ther

Rec

eiva

bles

0.00

5,88

3

-

-

5,

883

15

,24

9-

8,0

33

7,2

16

Fin

anci

al L

iab

iliti

e sPa

yabl

es(i

)0.

0024

,236

-

-

24

,236

Bor

row

ings

4.39

770

77

0

-

-

Oth

er fin

anci

al li

abili

ties

0.00

16,3

75

-

-

16

,375

41

,38

17

70

-4

0,6

11

(ii)

Nor

ther

n H

ealth

has

ent

ered

into

tw

o bo

rrow

ing

arra

ngem

ents

via

2 p

rovi

ders

(M

etro

Par

king

Bor

row

ing

arra

ngem

ent

at 6

.5%

and

the

Wils

on S

ecur

ity B

orro

win

g ar

rang

emen

t is

at

2.27

%).

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

(co

nti

nu

ed)

(i)

The

carr

ying

am

ount

exc

lude

s st

atut

ory

finan

cial

ass

ets

and

liabi

litie

s (i

.e.

GST

inpu

t ta

x cr

edit

and

GST

paya

ble)

Nor

ther

n H

ealth

's e

xpos

ures

to

mar

ket

risk

are

prim

arily

thr

ough

inte

rest

rat

e risk

with

onl

y in

sign

ifica

nt e

xpos

ure

to for

eign

cur

renc

y an

d ot

her

pric

e risk

s. O

bjec

tives

, po

licie

s an

d pr

oces

ses

used

to

man

age

each

of th

ese

risk

s ar

e di

sclo

sed

in t

he p

arag

raph

bel

ow.

Inte

rest

Rat

e Ex

pos

ure

Nor

ther

n H

ealth

is e

xpos

ed t

o in

sign

ifica

nt for

eign

cur

renc

y risk

thr

ough

its

paya

bles

rel

atin

g to

pur

chas

es o

f su

pplie

s an

d co

nsum

able

s fr

om o

vers

eas.

Th

is is

bec

ause

of a

limite

d am

ount

of pu

rcha

ses

deno

min

ated

in for

eign

cur

renc

ies

and

a sh

ort

timef

ram

e be

twee

n co

mm

itmen

t an

d se

ttle

men

t.

Expo

sure

to

inte

rest

rat

e risk

mig

ht a

rise

prim

arily

thr

ough

Nor

ther

n H

ealth

's in

tere

st b

earing

liab

ilitie

s. M

inim

isat

ion

of r

isk

is a

chie

ved

by m

ainl

y un

dert

akin

g fix

ed r

ate

or n

on-i

nter

est

bear

ing

finan

cial

inst

rum

ents

. F

or fin

anci

al li

abili

ties,

Nor

ther

n H

ealth

mai

nly

unde

rtak

e fin

anci

al li

abili

ties

with

rel

ativ

ely

even

mat

urity

pro

files

.Cas

h flo

w in

tere

st r

ate

risk

is t

he r

isk

that

the

fut

ure

cash

flo

ws

of a

fin

anci

al in

stru

men

t w

ill flu

ctua

te b

ecau

se o

f ch

ange

s in

mar

ket

inte

rest

rat

es.

Nor

ther

n H

ealth

has

min

imal

ex p

osur

e to

cas

h flo

w in

tere

st r

ate

risk

s th

roug

h its

cas

h an

d de

posi

ts t

hat

are

at flo

atin

g ra

te.

Nor

ther

n H

ealth

man

ages

thi

s risk

by

mai

nly

unde

rtak

ing

fixed

rat

e or

non

-int

eres

t be

arin

g fin

anci

al in

stru

men

ts w

ith r

elat

ivel

y ev

en m

atur

ity p

rofil

es,

with

onl

y in

sign

ifica

nt a

mou

nts

of fin

anci

al

inst

rum

ents

at

float

ing

rate

. M

anag

emen

t ha

s co

nclu

ded

for

cash

at

bank

as

finan

cial

ass

ets

that

can

be

left

at

float

ing

rate

with

out

nece

ssar

ily e

xpos

ing

Nor

ther

n H

ealth

to

sign

ifica

nt b

ad r

isk,

m

anag

emen

t m

onito

rs m

ovem

ent

in in

tere

st r

ates

on

a da

ily b

asis

.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

52 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

3 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

(e)

Mar

ket

Ris

k (c

ont)

Sen

siti

vity

Dis

clo

sure

An

aly

sis

- A

shi

ft o

f +

1% a

nd -

1% in

mar

ket

inte

rest

rat

es (

AU

D)

from

yea

r-en

d ra

tes

of 1

.75%

- A

par

alle

l shi

ft o

f +

1% a

nd 1

% in

infla

tion

rate

fro

m y

ear-

end

rate

s of

1.3

0%

Car

ryin

gA

mou

nt

20

16

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

Fin

anci

al A

sset

s-

Cas

h an

d Cas

h Eq

uiva

lent

s(i)

19,6

60

(1

96)

(1

96)

19

6

196

-

-

-

-

Rec

eiva

bles

- T

rade

deb

tors

3,03

0

-

-

-

-

-

-

-

-

-

Oth

er r

ecei

vabl

es4,

750

-

-

-

-

-

-

-

-

Fi

nan

cial

Lia

bili

ties

-

Paya

bles

24,5

84

-

-

-

-

-

-

-

-

Bor

row

ings

462

-

-

-

-

O

ther

Fin

anci

al L

iabi

litie

s16

,300

-

-

-

-

-

-

-

-

(1

96

)(1

96

)1

96

1

96

--

--

20

15

Fin

anci

al A

sset

sCas

h an

d Cas

h Eq

uiva

lent

s(i)

8,06

1

(8

0)

(80)

80

80

-

-

-

-

Rec

eiva

bles

- T

rade

deb

tors

1,30

5

-

-

-

-

-

-

-

-

-

Oth

er r

ecei

vabl

es5,

883

-

-

-

-

-

-

-

-

Fi

nan

cial

Lia

bili

ties

Paya

bles

24,2

36

-

-

-

-

-

-

-

-

Bor

row

ings

770

Oth

er F

inan

cial

Lia

bilit

ies

16,3

75

-

-

-

-

-

-

-

-

(8

0)

(80

)8

0

8

0-

--

-

(f)

Fair

Val

ue

The

aggr

egat

e ne

t fa

ir v

alue

of

finan

cial

ass

ets

and

liabi

litie

s, b

oth

reco

gnis

ed a

nd u

nrec

ogni

sed,

at

the

bala

nce

date

are

equ

al t

o th

eir

carr

ying

am

ount

as

per

the

bala

nce

shee

t.

Nor

ther

n H

ealth

con

side

rs t

hat

the

carr

yin g

am

ount

of

finan

cial

ass

ets

and

liabi

litie

s re

cord

ed in

the

fin

anci

al s

tate

men

ts t

o be

a f

air

appr

oxim

atio

n of

the

ir f

air

valu

es,

give

n th

e sh

ort-

term

nat

ure

of t

he

finan

cial

inst

rum

ents

and

the

exp

ecta

tion

that

the

y w

ill b

e pa

id in

ful

l.

Not

e 1

9:

Fin

anci

al I

nst

rum

ents

(co

nti

nu

ed)

(ii)

The

car

ryin

g am

ount

exc

lude

s st

atut

ory

finan

cial

ass

ets

and

liabi

litie

s (i

.e.

GST

inpu

t ta

x cr

edit

and

GST

paya

ble)

Inte

rest

Rat

e R

isk

Oth

er P

rice

Ris

k

Taki

ng in

to a

ccou

nt p

ast

perf

orm

ance

, fu

ture

exp

ecta

tions

, ec

onom

ic f

orec

asts

, an

d m

anag

emen

t's k

now

ledg

e an

d ex

perien

ce o

f th

e fin

anci

al m

arke

ts,

Nor

ther

n H

ealth

bel

ieve

s th

e fo

llow

ing

mov

emen

ts a

re 'r

easo

nabl

y po

ssib

le' o

ver

the

next

12

mon

ths

(Bas

e ra

tes

are

sour

ced

from

the

Res

erve

Ban

k of

Aus

tral

ia)

The

follo

win

g ta

ble

disc

lose

s th

e im

pact

on

net

oper

atin

g re

sult

and

equi

ty f

or e

ach

cate

gory

of

finan

cial

inst

rum

ent

held

by

Nor

ther

n H

ealth

at

year

end

as

pres

ente

d to

key

man

agem

ent

pers

onne

l, if

chan

ges

in t

he r

elev

ant

risk

occ

ur.

-1%

+1

%-5

%

(i)

e.g.

Sen

sitiv

ity o

f ca

sh a

nd c

ash

equi

vale

nts

to +

1% m

ovem

ent

in in

tere

st r

ates

: [$

19,6

60*0

.024

6]-[

$19,

660*

0.01

46]

= $

196k

Sim

ilarly

-1%

mov

emen

t in

inte

rest

rat

e im

pact

= $

(196

k)

+1

0%

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

53 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

4 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Par

ent

Enti

tyC

onso

l'dC

onso

l'd2

01

52

01

62

01

5$

'00

0$

'00

0$

'00

0(a

) C

omm

itm

ents

oth

er t

han

pu

blic

pri

vate

par

tner

ship

sC

apit

al E

xpen

dit

ure

Com

mit

men

tsPa

yabl

e:La

nd a

nd B

uild

ings

39,8

75

3,

141

22

,093

Plan

t an

d Eq

uipm

ent

9,23

9

2,79

9

3,52

3

Inta

ngib

le A

sset

s16

27

To

tal C

apit

al E

xpen

dit

ure

Com

mit

men

ts4

9,1

14

5,9

56

2

5,6

43

Not

late

r th

an o

ne y

ear

27,5

43

3,

141

22

,093

Late

r th

an 1

yea

r an

d no

t la

ter

than

5 y

ears

-

-

-

To

tal

-

3

,14

1

22

,09

3

Pl

ant

and

Equi

pmen

tN

ot la

ter

than

one

yea

r8,

194

2,

799

3,

523

La

ter

than

1 y

ear

and

not

late

r th

an 5

yea

rs1,

045

-

-

Tota

l-

2,7

99

3

,52

3

Inta

ngib

le A

sset

s-

Not

late

r th

an o

ne y

ear

-

16

27

Tota

l1

,04

5

1

6

27

Not

e 2

0:

Com

mit

men

ts f

or E

xpen

dit

ure

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

54 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

5 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

Nor

ther

n H

ealt

h A

nn

ual

Rep

ort

20

15

/2

01

6

Par

ent

Con

sol'd

Con

sol'd

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

Oth

er E

x pen

dit

ure

Com

mit

men

tsPa

yabl

e:Pa

thol

ogy

Ser

vice

s 19

,408

6,16

4

11,0

95

Rad

iolo

gy S

ervi

ces

12,9

83

51

,245

11,0

91

Fo

od S

ervi

ces

8,49

3

20,7

89

7,

241

La

undr

y Ser

vice

s2,

152

53

6

2,

187

Cle

anin

g Ser

vice

s1,

483

12

,544

4,93

9

Patie

nt T

rans

port

1,00

0

1,63

7

Was

te S

ervi

ces

588

816

1,

347

M

aint

enan

ce S

ervi

ces

1,34

5

3,03

7

1,15

0

Sec

urity

Ser

vice

s8,

795

4,

487

6,

719

Sha

red

Ser

vice

s12

,449

10,8

72

To

tal O

ther

Exp

end

itu

re C

omm

itm

ents

55

,43

31

13

,06

7

5

8,2

78

Not

late

r th

an o

ne y

ear

35,6

47

39

,556

38,2

57

La

ter

than

1 y

ear

and

not

late

r th

an 5

yea

rs25

,133

73,5

11

20

,022

TOTA

L6

0,7

80

11

3,0

67

58

,27

8

Le

ase

Com

mit

men

tsCom

mitm

ents

in r

elat

ion

to le

ases

con

trac

ted

for

at t

he r

epor

ting

date

:O

pera

ting

Leas

es1,

734

91

8

1,

350

To

tal L

ease

Com

mit

men

ts1

,73

49

18

1,3

50

Op

era

tin

g L

ease

s

Non

-can

cella

ble

Not

late

r th

an o

ne y

ear

464

447

460

Late

r th

an 1

yea

r an

d no

t la

ter

than

5 y

ears

1,27

0

471

890

Su

b T

otal

1,7

34

91

8

1

,35

0

TOTA

L1

,73

4

9

18

1,3

50

Tota

l Com

mit

men

ts f

or e

xpen

dit

ure

(in

clu

sive

of

GS

T)#

##

##

11

9,9

41

85

,27

1

less

GST

reco

vera

ble

from

the

Aus

tral

ian

Tax

Off

ice

(10,

148)

(1

0,90

4)

(7,7

52)

Tota

l com

mit

men

ts f

or e

xpen

dit

ure

(ex

clu

sive

of

GS

T)9

6,1

33

10

9,0

37

77

,51

9

All

amou

nts

show

n in

the

com

mitm

ents

not

e ar

e no

min

al a

mou

nts

incl

usiv

e of

GST.

Not

e 2

0:

Com

mit

men

ts f

or E

xpen

dit

ure

(co

nti

nu

ed)

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

55 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

4 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

6 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Nor

ther

n H

ealth

is n

ot a

war

e of

an y

con

tinge

nt a

sset

s (2

015:

Nil)

.

20

16

20

15

20

16

20

15

20

16

20

15

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

$'0

00

REV

ENU

EEx

tern

al S

egm

ent

Rev

enue

3,3

10

2

,998

452,

969

39

3,93

0 45

6,27

9

39

6,92

8

To

tal R

even

ue

3

,31

0

2

,99

8

4

52

,96

9

3

93

,93

0

45

6,2

79

39

6,9

28

EXP

ENS

ES

- Ex

tern

al S

egm

ent

Expe

nses

(5,3

02)

(3

,334

)

(4

47,5

44)

(413

,138

)(4

52,8

46)

(416

,472

)

In

ters

egm

ent

Expe

nses

-

-

-

-

-

-

Tota

l Exp

ense

s

(

5,3

02

)

(

3,3

34

)

(44

7,5

44

)

(41

3,1

38

)(4

52

,84

6)

(41

6,4

72

)

N

et R

esu

lt f

rom

Ord

inar

y A

ctiv

itie

s

(

1,9

92

)

(3

36

)

5,4

25

(1

9,2

08

)

3,4

33

(1

9,5

44

)

Inte

rest

Exp

ense

-

-

(2

5)

-

(25)

-

In

tere

st I

ncom

e

-

-

91

8

933

918

93

3

Net

Res

ult

for

Yea

r

(

1,9

92

)

(3

36

)

6,3

18

(1

8,2

75

)4

,32

6(1

8,6

11

)

OTH

ER I

NFO

RM

ATI

ON

Seg

men

t Ass

ets

127

146

39

2,15

9

391,

781

392,

286

391,

927

Una

lloca

ted

Ass

ets

-

-

40,

764

25,

346

40,7

64

25,3

46

Tota

l Ass

ets

12

7

14

6

4

32

,92

3

4

17

,12

7

43

3,0

50

41

7,2

73

Una

lloca

ted

Liab

ilitie

s

-

-

119,

833

108,

380

119,

833

108,

380

Tota

l Lia

bili

ties

-

-

1

19

,83

3

1

08

,38

0

11

9,8

33

10

8,3

80

Acq

uisi

tion

of P

rope

rty,

Pla

nt a

nd E

quip

men

t an

d In

tang

ible

Ass

ets

8

41

2

3,14

5

2

0,61

8 23

,153

2

0,65

9 D

e pre

ciat

ion

and

Am

ortis

atio

n ex

pens

e

26

23

2

2,89

9

2

2,00

8 22

,925

2

2,03

1

The

maj

or p

rodu

cts/

serv

ices

fro

m w

hich

the

abo

ve s

egm

ents

der

ive

reve

nue

are:

Bu

sin

ess

Seg

men

tsS

ervi

ces

Res

iden

tial A

ged

Car

e Ser

vice

s (R

ACS)

Prov

ider

of

resi

dent

ial a

ged

care

bed

sN

orth

ern

Hea

lthPr

ovid

er o

f ac

ute

and

sub

acut

e pa

tient

car

e

All

inte

r-se

gmen

t tr

ansa

ctio

ns a

re c

arried

at

cost

.

Geo

gra

ph

ical

Seg

men

t

Not

e 2

1:

Con

tin

gen

t A

sset

s an

d C

onti

ng

ent

Liab

iliti

es

Nor

ther

n H

ealth

is n

ot a

war

e of

any

con

tinge

nt li

abili

ties

(201

5: N

il).

Not

e 2

2:

Op

erat

ing

Seg

men

ts

Nor

ther

n H

ealth

ope

rate

s in

the

nor

ther

n su

burb

s of

Mel

bour

ne (

Bro

adm

eado

ws,

Bun

door

a, C

raig

iebu

rn,

Eppi

ng a

nd P

rest

on)

Vic

toria.

All

reve

nue,

exp

ense

s an

d se

gmen

t as

sets

rel

ate

to o

pera

tions

in

Mel

bour

ne,

Vic

toria.

Con

sol'd

Res

iden

tial

Ag

ed C

are

Ser

vice

sO

ther

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

56 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

7 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

e por

t 2

01

5/

20

16

Mr

Brian

Joy

ceM

r Pe

ter

McW

illia

mAss

ocia

te P

rofe

ssor

Joh

n Fi

tzge

rald

Dr

Alis

on L

illey

Mr

Jam

es B

aile

y

Ms

Julia

nn B

yron

Ms

Jane

t Com

pton

Mr

Rob

ert

Bur

nham

Mr

Siv

a Siv

ara j

ah

The

num

ber

of R

espo

nsib

le P

erso

ns a

re s

how

n in

the

ir r

elev

ant

inco

me

band

s;2

01

62

01

52

01

62

01

5In

com

e B

and

No.

No.

No.

No.

$0 -

$9,

999

00

-1

$10,

000

- $1

9,99

91

02

-$2

0,00

0 -

$29,

999

68

36

$30,

000

- $3

9,99

90

23

1$4

0,00

0 -

$49,

999

10

-1

$200

,000

- $

209,

999

00

1-

$230

,000

- $

239,

999

1$2

80,0

00 -

$28

9,99

90

11

-$3

00,0

00 -

$30

9,99

91

0-

1To

tal N

um

ber

s9

1111

10

$9

35

,77

6

$

55

8,1

08

The

Hon

oura

ble

Mar

tin F

oley

, M

inis

ter

for

Hou

sing

, D

isab

ility

and

Age

ing,

Min

iste

r fo

r M

enta

l Hea

lth01

/07/

2015

- 3

0/06

/201

6

Not

e 2

3a:

Res

pon

sib

le P

erso

ns

Dis

clos

ure

s

Per

iod

In a

ccor

danc

e w

ith t

he M

inis

terial

Direc

tions

issu

ed b

y th

e M

inis

ter

for

Fina

nce

unde

r th

e Fi

nanc

ial M

anag

emen

t Act

199

4, t

he fol

low

ing

disc

losu

res

are

mad

e re

gard

ing

resp

onsi

ble

pers

ons

for

the

repo

rtin

g pe

riod

.

Res

pon

sib

le M

inis

ters

The

Hon

oura

ble

Jill

Hen

ness

y, M

inis

ter

for

Hea

lth,

Min

iste

r fo

r Am

bula

nce

Ser

vice

s01

/07/

2015

- 3

0/06

/201

6

Con

sol'd

08/1

2/20

15 -

30/

06/2

016

Am

ount

s re

latin

g to

Res

pons

ible

Min

iste

rs a

re r

epor

ted

in t

he fin

anci

al s

tate

men

ts o

f th

e D

epar

tmen

t of

Pre

mie

r an

d Cab

inet

. F

or in

form

atio

n re

gard

ing

regi

ster

of m

embe

r's

inte

rest

s in

pu

blic

ly a

vaila

ble

from

ww

w.p

arlia

men

t.vi

c.go

v.au

/pub

licat

ions

/reg

iste

r of

inte

rest

s.

J W

illia

ms

serv

es a

s a

Mem

ber

of t

he L

atro

be U

nive

rsity

Cou

ncil.

Lat

robe

Uni

vers

ity t

rans

acts

with

Nor

ther

n H

ealth

on

norm

al c

omm

erci

al t

erm

s an

d co

nditi

ons.

In

2016

Nor

ther

n H

ealth

re

ceiv

ed $

1.24

M fro

m L

atro

be (

2015

: $0

.38M

) an

d m

ade

$0.0

5M in

pay

men

ts (

2015

: $0

.04M

).N

orth

ern

Hea

lth is

not

aw

are

of a

ny o

ther

mat

eria

l bus

ines

s ar

rang

emen

ts in

201

5-16

invo

lvin

g N

orth

ern

Hea

lth a

nd R

elat

ed P

artie

s.

Oth

er T

ran

sact

ion

s of

Res

pon

sib

le P

erso

ns

and

th

eir

Rel

ated

Par

ties

.

Rem

un

erat

ion

of

Res

pon

sib

le P

erso

ns

Acc

oun

tab

le O

ffic

ers:

01/0

7/20

15 -

10/

08/2

015

Tota

l rem

un

erat

ion

com

pri

sin

g a

ll m

oney

, co

nsi

der

atio

n a

nd

ben

efit

s re

ceiv

ed o

r re

ceiv

able

by

Res

pon

sib

le P

erso

ns

from

th

e re

por

tin

g e

nti

ty a

mou

nte

d t

o:

01/0

7/20

15 -

30/

06/2

016

Ms

Jenn

ifer

Will

iam

s (C

hair)

01/0

7/20

15 -

30/

06/2

016

01/0

7/20

15 -

30/

06/2

016

Gov

ern

ing

Boa

rd

01/0

7/20

15 -

30/

06/2

016

Ms

Sab

ine

Phill

ips

01/0

7/20

15 -

30/

06/2

016

01/0

7/20

15 -

30/

06/2

016

01/0

7/20

15 -

30/

06/2

016

17/0

8/20

15 -

30/

06/2

016

11/0

8/20

15 -

16/

08/2

015

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

57 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

6 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

8 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Exec

uti

ve O

ffic

ers'

Rem

un

erat

ion

20

16

20

15

20

16

20

15

No.

No.

No.

No.

$110

,000

– $

119,

999

1-

--

$180

,000

– $

189,

999

1-

1-

$190

,000

– $

199,

999

-1

--

$200

,000

– $

209,

999

--

-1

$210

,000

– $

219,

999

2-

2-

$220

,000

– $

229,

999

12

11

$230

,000

– $

239,

999

12

22

$240

,000

– $

249,

999

-1

-1

$250

,000

– $

259,

999

--

--

$260

,000

– $

269,

999

1-

11

$380

,000

– $

389,

999

--

--

$390

,000

– $

399,

999

-1

-1

Tota

l Nu

mb

er o

f Ex

ecu

tive

s (b

)7

77

7

Tota

l an

nu

alis

ed e

mp

loye

e eq

uiv

alen

t (A

EE)

(a)

127

127

Tota

l Rem

un

erat

ion

2,0

24

,27

9$

1

,89

8,8

65

$

2,0

16

,37

1$

1

,82

6,0

42

$

Con

solid

ated

Tota

l Rem

un

erat

ion

Bas

e R

emu

ner

atio

n

(a)

Ann

ualis

ed e

mpl

oyee

equ

ival

ent

is b

ased

on

wor

king

38

ordi

nary

hou

rs p

er w

eek

over

the

rep

orting

per

iod.

Dur

ing

the

year

4 E

xecu

tive

Off

icer

s re

tire

d, r

esig

ned

or w

ere

retr

ench

ed.

As

they

did

not

wor

k a

full

year

, th

eir

rem

uner

atio

n fo

r 20

15-1

6 w

as b

elow

$10

0,00

0 an

d ha

s no

t be

en r

epor

ted

in t

he in

com

e ta

ble

abov

e. A

new

rep

lace

men

t Ex

ecut

ive

Direc

tor

was

app

oint

ed d

urin

g 20

16 h

owev

er a

s th

eir

inco

me

is b

elow

$10

0,00

0 th

eir

reum

erat

ion

has

not

been

sho

w in

the

tab

le a

bove

.

Not

e 2

3b

: Ex

ecu

tive

Off

icer

Dis

clos

ure

s

The

num

bers

of

Exec

utiv

e O

ffic

ers,

oth

er t

han

Min

iste

rs a

nd A

ccou

ntab

le O

ffic

ers,

and

the

ir t

otal

rem

uner

atio

n du

ring

the

rep

ortin

g pe

riod

are

sho

wn

in t

he s

ched

ule

belo

w in

the

ir

rele

vant

inco

me

band

s.

The

tota

l rem

uner

atio

n of

Exe

cutiv

e O

ffic

ers

is s

how

n in

the

first

and

sec

ond

colu

mns

. It

com

pris

es a

ll m

oney

, co

nsid

erat

ion

and

bene

fits

rece

ived

or

rece

ivab

le b

y th

e Ex

ecut

ive

Off

icer

s. T

he b

ase

rem

uner

atio

n of

Exe

cutiv

e O

ffic

ers

is s

how

n in

the

thi

rd a

nd f

ourt

h co

lum

ns.

Bas

e re

mun

erat

ion

com

pris

es s

alar

ies,

sup

eran

nuat

ion

and

the

gros

sed-

up r

epor

tabl

e fr

inge

ben

efits

to

Exec

utiv

e O

ffic

ers

from

sal

ary

pack

agin

g. B

ase

rem

uner

atio

n is

exc

lusi

ve o

f bo

nus

paym

ents

, lo

ng-s

ervi

ce le

ave

paym

ents

, re

dund

ancy

pay

men

ts a

nd r

etirem

ent

bene

fits.

Exe

cutiv

e O

ffic

ers

with

rem

uner

atio

n pa

ckag

es in

exc

ess

of $

100,

000

who

hav

e co

mm

ence

d or

cea

sed

empl

oym

ent

with

Nor

ther

n H

ealth

dur

ing

the

year

hav

e be

en in

clud

ed

in t

he f

ollo

win

g de

tails

.

Und

er N

orth

ern

Hea

lth’s

Exe

cutiv

e st

ruct

ure

ther

e ar

e si

x Clin

ical

Div

isio

nal D

irec

tors

. W

hile

the

se D

irec

tors

do

not

form

par

t of

the

Exe

cutiv

e a

lead

Direc

tor

is a

ppoi

nted

on

a ro

lling

ba

sis

to p

artic

ipat

e in

Exe

cutiv

e O

ffic

er m

eetin

gs.

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

58 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

9 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

epor

t 2

01

5/

20

16

Not

e 2

4:

Eve

nts

Occ

urr

ing

aft

er t

he

Bal

ance

Sh

eet

Dat

e

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Vic

tori

an A

ud

itor

-Gen

eral

's O

ffic

eAud

it an

d re

view

of

finan

cial

sta

tem

ent

77

73

Tota

l Rem

un

erat

ion

of

Au

dit

ors

77

73

Con

sol'd

Con

sol'd

20

16

20

15

$'0

00

$'0

00

Nor

ther

n H

ealt

h h

as m

ade

the

follo

win

g e

x-g

rati

a ex

pen

ses

: Pa

ymen

ts a

ssoc

iate

d w

ith e

mpl

oyee

dep

artu

re s

epar

atio

n ar

rang

emen

ts16

2

313

Tota

l ex-

gra

tia

exp

ense

s 1

62

31

3

(i)

The

tota

l for

ex-

grat

ia e

xpen

ses

in a

lso

pres

ente

d in

Not

e 3

Expe

nses

Nam

e of

en

tity

Cou

ntr

y of

in

corp

orat

ion

Equ

ity

Hol

din

g

Nor

ther

n H

ealth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Fo

unda

tion

Ltd

Aus

tral

iaLi

mite

d by

Gua

rant

ee

Nor

ther

n H

ealth

Res

earc

h, T

rain

ing

and

Equi

pmen

t Tr

ust

Aus

tral

ian/

a

No

even

ts a

fter

the

Bal

ance

She

et d

ate

whi

ch m

ay h

ave

a m

ater

ial i

mpa

ct o

n th

ese

finan

cial

sta

tem

ents

hav

e oc

curr

ed.

The

finan

cial

per

form

ance

and

pos

ition

of

Nor

ther

n H

ealth

has

impr

oved

sin

ce t

he p

rior

yea

r. N

orth

ern

Hea

lth h

as r

epor

ted

a ne

t su

rplu

s be

fore

cap

ital a

nd s

peci

fic it

ems

of $

0.54

mill

ion

(201

5: n

et d

efic

it of

$8.

85 m

illio

n),

a cu

rren

t as

set

ratio

of

0.34

(20

15:

0.24

) an

d ne

t ca

sh f

low

ope

ratio

ns o

f $3

5.03

mill

ion

(201

5: $

6.08

mill

ion)

.

Whi

le t

here

has

bee

n im

prov

emen

t ac

ross

all

thre

e in

dica

tors

Nor

ther

n H

ealth

’s f

inan

cial

sus

tain

abili

ty is

stil

l mat

eria

lly b

elow

the

leve

l tha

t w

ould

ena

ble

man

agem

ent

and

the

Boa

rd t

o fo

rm a

vie

w t

hat

the

heal

th s

ervi

ce h

as a

dequ

ate

cash

flo

w t

o m

eets

its

oblig

atio

ns.

As

a co

nseq

uenc

e N

orth

ern

Hea

lth h

as o

btai

ned

a Le

tter

of

Com

fort

fro

m t

he S

tate

Gov

ernm

ent,

na

mel

y D

HH

S c

onfir

min

g th

at t

hey

will

con

tinue

to

prov

ide

Nor

ther

n H

ealth

ade

quat

e ca

sh f

low

to

mee

t its

cur

rent

and

fut

ure

oblig

atio

ns u

p to

Sep

tem

ber

2017

. A le

tter

was

als

o ob

tain

ed f

or t

he p

revi

ous

finan

cial

yea

r. O

n th

is b

asis

, th

e fin

anci

al s

tate

men

ts h

ave

been

pre

pare

d on

a g

oing

con

cern

bas

is.

Nor

ther

n H

ealth

is c

omm

itted

to

the

cont

inue

d re

view

of

its f

inan

cial

and

ope

ratin

g pe

rfor

man

ce w

ith a

vie

w t

o id

entif

ying

fur

ther

eff

icie

ncie

s an

d re

venu

e ge

nera

ting

oppo

rtun

ities

and

pr

ovid

ing

the

mos

t ef

fect

ive

and

effic

ient

ser

vice

del

iver

y m

odel

with

out

com

prom

isin

g pa

tient

car

e an

d qu

ality

of

serv

ice

deliv

ery.

Nor

ther

n H

ealth

man

agem

ent

will

con

tinue

to

iden

tify

and

impl

emen

t a

num

ber

of b

usin

ess

initi

ativ

es t

o be

tter

man

age

avai

labl

e fin

anci

al r

esou

rces

.

Not

e 2

8:

Eco

nom

ic D

epen

den

cy

Not

e 2

5:

Rem

un

erat

ion

of

Au

dit

ors

Not

e 2

7:

Con

trol

led

En

titi

es

Not

e 2

6:

Ex-

gra

tia

Exp

ense

s

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

59 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 5

8 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

0 of

62

Not

es T

o an

d F

orm

ing

Par

t of

th

e Fi

nan

cial

Sta

tem

ents

N

orth

ern

Hea

lth

An

nu

al R

e por

t 2

01

5/

20

16

Par

ent

Enti

tyP

aren

t En

tity

Con

sol'd

Con

sole

d2

01

62

01

52

01

62

01

5$

'00

0$

'00

0$

'00

0$

'00

0

Inte

rest

902

868

918

933

Sal

es o

f go

ods

and

serv

ices

35,1

41

30,9

00

35,2

18

30,9

26

Gra

nts

415,

625

360,

375

415,

625

360,

375

Oth

er I

ncom

e4,

923

8,28

2

5,41

8

5,57

0

Tota

l Rev

enu

e4

56

,59

14

00

,42

54

57

,17

93

97

,80

4

Empl

oyee

exp

ense

s29

8,84

1

273,

056

299,

054

273,

056

Dep

reci

atio

n22

,925

22,0

32

22,9

25

22,0

32

Inte

rest

exp

ense

57

50

58

51

Oth

er o

pera

ting

expe

nses

130,

439

120,

885

130,

735

121,

332

Tota

l Exp

ense

s4

52

,26

24

16

,02

34

52

,77

24

16

,47

1

Net

Res

ult

fro

m t

ran

sact

ion

s -

Net

op

erat

ing

bal

ance

4,3

29

(1

5,5

98

)

4

,40

7

(18

,66

7)

Net

gai

n/(l

oss)

on

non-

finan

cial

ass

ets

(83)

57

(83)

57

Tota

l oth

er e

con

omic

flo

ws

incl

ud

ed in

net

res

ult

(83

)

57

(8

3)

5

7

Net

res

ult

4,2

46

(1

5,5

41

)

4

,32

4

(18

,61

0)

Not

e 2

9:

Alt

ern

ativ

e P

rese

nta

tion

of

Com

pre

hen

sive

Op

erat

ing

Sta

tem

ent

Nor

ther

n H

ealth

Fin

anci

al R

epor

tA

ppen

dix

to th

e 20

15-2

016

Ann

ual R

epor

tP

age

60 o

f 62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

1 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

0 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

2 of

62

Nor

ther

n H

ealth

Fin

anci

al R

epor

t

App

endi

x to

the

201

5 -

2016

Ann

ual R

epor

t Pa

ge 6

2 of

62

THIS

PA

GE

HA

S B

EE

N IN

TEN

TIO

NA

LLY

LEFT

BLA

NK

THIS

PA

GE

HA

S B

EE

N IN

TEN

TIO

NA

LLY

LEFT

BLA

NK

Broadmeadows Health Service 35 Johnstone Street Broadmeadows Vic 3074 T. (03) 8345 5000 F. (03) 8345 5655

Bundoora Extended Care Centre 1231 Plenty Road Bundoora Vic 3083 T. (03) 9495 3100 F. (03) 9467 4365

Craigieburn Health Service 274-304 Craigieburn Road Craigieburn Vic 3064 T. (03) 8338 3000 F. (03) 8338 3110

Panch Health Service 300 Bell Street Preston Vic 3072 T. (03) 9485 9000 F. (03) 9485 9010

The Northern Hospital 185 Cooper Street Epping Vic 3076 T. (03) 8405 8000 F. (03) 8405 8524

annual report - parliament.vic.gov.au · our vision outstanding health care for our community. our...

Documents