blood service annual report 2013

ANNUAL REPORT2012 /13

04 Vision, values and mission

06 From the Chair and Chief Executive

10 Corporate Governance

20 The Board

22 The Executive

24 Key performance indicators

26 Organisation chart

28 Corporate, Strategy and Performance

30 Donor Services

32 Finance

34 Human Resources

36 Information Services

38 Manufacturing

40 Medical, Transplantation and Quality Services

42 Research and Development

44 Thank you for saving Jasmines life

46 Finance Report from the Chief Executive and Chief Financial Officer

50 Independent Auditors report

52 Statement of profit or loss and other comprehensive income

53 Statement of financial position

54 Statement of changes in equity

55 Statement of cash flows

56 Notes to the financial statements

86 Declaration

87 What your blood donation means to me

88 Australian Red Cross

90 Contact details

ANNUAL REPORT 2012/13

head

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AUSTRALIAN RED CROSS BLOOD SERVICE | 32 |

We achieved the best match of red cell inventory to patient demand, with supplies remaining within our inventory sufficiency bands for 254 days.Chair and Chief Executive Report

CONTENTS




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30 Donor Services

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86 Declaration



90 Contact details

ON THE COVER:

Picture by Darren James

Sabrina Liew from the Melbourne Processing Centre is inspecting the contents of the tubes and checking donation numbers against the biochemistry print pending report.





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AUSTRALIAN RED CROSS BLOOD SERVICE | 54 | ANNUAL REPORT 2012/13

OUR VISION, MISSION AND VALUES OUR VALUES

Our values set out how we will behave in the pursuit of our vision, mission and strategic objectives:

Integrity

We act honestly and ethically at all times.

Service

We focus on meeting the needs of patients, the community, customers, donors, stakeholders and colleagues.

Safety and quality

We make safety and quality part of everything we do.

Collaboration

We work together to achieve our goals.

Accountability

We take ownership of our actions and behaviours to ensure we achieve our goals.

Excellence

We strive to be the best at what we do.

An explanation of these objectives and the programs of work that underpin them are clearly set out in detail in the strategic plan. Copies of the plan are obtainable by contacting 03 9863 1600 or visiting donateblood.com.au

OUR VISIONTo improve the lives of patients through the power of humanity.

This expresses the belief that unifies everyone at the Blood Service: that improving the life of patients brings us together as one organisation. In short, one organisation, one direction.

OUR MISSIONTo perform a critical role in healthcare by providing a safe, secure and cost effective supply of quality blood products, essential services and leading edge research to meet the needs of patients.

This mission highlights our role as a healthcare provider, maintains the focus on patients and uses concrete language relevant to all stakeholders. Importantly, it easily translates to strategic measures, which also makes it simpler to monitor and report on how we are performing against our aims.

We have key performance measures to assess each of our operational activities in terms of: supply, safety and quality, productivity, sufficiency and financial efficiency. We also have additional measures to track our progress on meeting our strategic objectives which are:

Deliver service excellence for our customers, donors and through innovative products and services

Provide value for stakeholders

Improve organisational capability




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ANNUAL REPORT 2012/13AUSTRALIAN RED CROSS BLOOD SERVICE6 | AUSTRALIAN RED CROSS BLOOD SERVICE | 7ANNUAL REPORT 2012/13

FROM THE CHAIR AND CHIEF EXECUTIVE

We want to make the donation process as seamless and easy-going as possible. Donors are now reminded about their appointment via text message.

The past year has been an outstanding success for the Blood Service and it is with great pleasure that we present our Annual Report for 2012/13.

The many significant achievements we delivered as an organisation for the benefit of the Australian public are the result of detailed strategic work conducted by all divisions over the past few years and we are now seeing the fruits of that labour.

Despite a reduction in demand for red cells and subsequent fall in the whole blood collections needed this year, we collected and delivered a record amount of plasma for processing into a range of life-saving products; 525 tonnes. We also achieved the best match of red cell inventory to patient demand, with supplies remaining within our inventory sufficiency bands for 254 days.

In October we began processing all collections from South Australia at the Melbourne Processing Centre, a change

that has not only driven significant improvements in efficiency and value for stakeholders but has also stabilised inventory in that state while improving inventory availability of our products.

As we enter an era of an ageing population coupled with an increasing demand for plasma, the Blood Service is striving to constantly improve donor

management to ensure the

sustainability of our donor panel so that we can meet that demand.

This broad effort includes commencing work on the implementation of a Donor Relationship Management System which provides staff with a central source of donor information to help us personalise our communications with them during every interaction.

We want great looking and appealing centres that give donors a better experience every time they donate. This is why we have been busy building new donor centres across the country and giving our existing centres a fresh, new look. This work is part of our refurbishment and refresh program. We have also developed national donor centre design guidelines which will allow us to create safe and efficient centres.

We are improving how we do business at the Blood Service and this year we introduced a new set of appointment reminders that we send to donors via text message. We want to make the donation process as seamless and easy-going as possible. One text message arrives five days before their appointment and the second arrives the day before their appointment and acts as a reminder to hydrate and eat well prior to donating we hope donors find this new process helpful for preparing to donate.




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ANNUAL REPORT 2012/13AUSTRALIAN RED CROSS BLOOD SERVICE | 98 | ANNUAL REPORT 2012/13

Text messaging has been a tremendous success with non-attendance rates dropping by 25 per cent over the year which has in turn, allowed our National Contact Centre staff to focus their attention on more outbound calls to recruit new donors.

We are now also using mobile applications and other online resources to provide health professionals with transfusion-related information and we are expanding the iTransfuse Online Learning Centre to support improving clinical transfusion practice.

We have also continued to develop our website (mytransfusion.com.au) specifically designed for patients.

Replacing an inefficient paper-based referral and appointments system with an electronic referral system for patients who need blood taken for therapeutic reasons has also been a huge success, cutting patient waiting times from referral to appointment from 12 weeks to two days.

As part of our deep commitment toward providing the safest blood supply possible, we have reduced the risk of transfusion-related acute lung injury (TRALI), one of the causes of which is thought to be antibodies found, particularly, in the blood of women who have been pregnant.

In January, for the first time we achieved 100 per cent male-derived clinical plasma components.

We are continually broadening our relationships with hospitals and our other customers to ensure patients receive the blood products they need when they need them, and there is now clear evidence our efforts are paying off. This year we achieved an overall customer satisfaction rate of 8.6 out of 10 and while there is always room for improvement, we believe this is a wonderful achievement.

Our work with the Australian Defence Force to develop and supply frozen blood products to our military in remote and emergency situations is now in the validation phase and following this work we aim to supply initial products to the Australian Defence Force in the coming year.

I would like to take this opportunity to thank our staff for their ongoing commitment and support of the Blood Service, particularly those in Manufacturing for their patience and flexibility during the shift from Adelaide to Melbourne, and to our Transplantation Services staff who faced a high workload caused by record organ donation rates.

Our Scientists in Research and Development earned a record $1.3 million for the work conducted for external agencies, while our Procurement team within the Finance division achieved savings for the organisation of $1.8 million through the development and

implementation of rigorous tender and purchasing systems.

The Finance division also finalised our new funding agreement with the National Blood Authority for the next three years which reduces risk to the Blood Service while enhancing funding certainty.

For the fourth consecutive year we have achieved an operating surplus, this year it was $12.5 million and we have returned $8.9 million to government resulting in an audited surplus of $3.6 million.

We will continue to review the way we work to maximise efficiencies and will introduce a number of programs to ensure that we have the right skill mix and infrastructure to support our future needs.

The diversity of our workforce is an increasing focus for us and this year we introduced a new employee group called the Gay, Lesbian and Other Workmates network (GLOW). GLOW has been designed to support staff that identify as gay, lesbian, bisexual, transgender or intersex. We hope that the GLOW network will support our employees and be a further demonstration of how the Blood Service values the contribution and expertise of all our staff members.

Through the course of the next year we will develop a new strategic plan and set the direction for the Blood Service toward 2020. Work is already underway with the completion of a broad environmental scan looking at trends in the sector and the future demand for blood and related products.

Once again I wish to thank our staff and volunteers at the Blood Service for their fine efforts and of course our donors for their continuing generosity which changes the lives of patients across the country every day of every year.

Hon Dr David Hamill AM | Chair

Jennifer Williams | Chief Executive

Hon Dr David Hamill AM Chair

Ms Jennifer Williams Chief Executive

Through the course of the next

year we will develop a new strategic plan and

set the direction for the Blood Service

toward 2020.




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ANNUAL REPORT 2012/13AUSTRALIAN RED CROSS BLOOD SERVICE | 1110 |

CORPORATE GOVERNANCE

Australian governments fully fund the Blood Service for the provision of blood products and services to the Australian community.

The Australian Red Cross Blood Service is a division of Australian Red Cross. The Board reports to the Red Cross Board, which has overall responsibility and oversight and appoints all non-executive Board members.

Australian governments fully fund the Blood Service for the provision of blood products and services to the Australian community. Consequently, we have specific financial and other reporting obligations to the National Blood Authority.

The Board plays a vital role in ensuring the governance of the Blood Service. It is responsible for the organisations efficient operation and takes the lead in setting the culture of operating in a responsible way within the community. The Blood Service Code of Conduct describes our expectations of how we behave and breaches of this are managed and reported through our governance framework. During the year there were no serious breaches requiring reporting to the Board.

About the Board

The Blood Service has a Board comprising nine non-executive members and the Chief Executive, who reports to the Board. Board members are selected on the basis of their skills and experience and are generally appointed for a three year term, but may be eligible for reappointment.

The responsibilities of the Board are to oversee the strategic direction, financial and operational activities and risk

management of the organisation. Our Good Governance Principles Policy available on our website donateblood.com.au provides more detail. Board meetings are held monthly at various locations around the country to enable interaction with staff and stakeholders.

The Board has an induction and training program and undertakes an annual review of its own performance. The conclusion of our externally facilitated 2012 review was that the Board is performing at a high level with recommendations seeking to improve performance of the Board at the edges. Actions included a change to the responsibilities of Board Committees, a holistic approach to Committee membership, confirmation with Red Cross of Board membership requirements and ensuring diversity in Board recruitment and succession planning. A further outcome was the decision to alternate internal self-evaluations with an externally facilitated review every two years. All of the actions from the 2012 review have now been closed out, including developing of the framework for the self-evaluation to occur in 2013.

Board Committees

The Board is assisted in its deliberations by its committees which may include external members to provide specialist input.

ADVISORy COMMITTEE Comprises a mainly external membership and provides independent advice to the Board and Red Cross on medical and scientific aspects of the blood program. It has a formal monitoring process

for donor, blood product and patient safety issues and blood sector projects, to ensure the Committees input and endorsement for the Blood Service approach in each case.

Members: Associate Professor Larry McNicol (Chair), Mr Ken Davis, Dr Craig French, Professor James Isbister, Dr George Kotsiou, Associate Professor Robert Lindeman, Dr Darryl Maher, Dr Ellen Maxwell, Associate Professor Alison Street, Mr Daryl Teague and Professor John Zalcberg.

ETHICS COMMITTEE While not a Board Committee, the Ethics Committee plays an important role in our governance framework. This is an independent body operating as a Human Research Ethics Committee. It is fully compliant with the National Statement on Ethical Conduct in Human Research. The Committee also considers broader ethical issues affecting the organisation as required.

Members: Professor Douglas Joshua (Chair), Professor Tony Cunningham, Ms Geraldine Farrell, Ms Kaye Hogan, Ms Debra Holder, Associate Professor Robert Lindeman, Mr Elton McKay, Professor John Rasko, Mr Malcolm Wood and Reverend Greg Woolnough.

FINANCE AND AUDIT COMMITTEE Ensures appropriate financial policies and controls have been established and are being implemented. It reviews and recommends to the Board the annual financial statements, and undertakes appointment of internal auditors, evaluation of financial aspects of risk and monitoring of the resolution of issues raised by internal and external auditors.

Our external auditor is Deloitte and the internal audit function is carried out by EY.

Members: Ms Hannah Crawford (Chair), Mr Nigel Ampherlaw, Ms Sandy Chakravarty, Hon Dr David Hamill, and Ms Jan West. Mr Graham Addison, Mr Andrew Eddy, Ms Kelly Jones and Mr Jim Swinden retired from the Committee during the year.

NOMINATIONS AND REMUNERATION COMMITTEE Assists the Board in its deliberations on executive remuneration, management succession planning and matters relating to employee policies. It also provides advice on Board performance, succession planning and recruitment of Board Members.

Members: Hon Dr David Hamill (Chair), Mr Ron Berenholtz, Associate Professor Larry McNicol, Mr Ross Pinney, Mr Jim Swinden (retired December 2012) and Ms Jennifer Williams.

RISk COMMITTEE Assists the Board in assuring that risk is managed in accordance with its risk management plan and that compliance obligations are managed appropriately. The Committee also monitors the Information Services strategy and business plan.

Members: Dr David Graham (Chair), Mr Nigel Ampherlaw, Ms Kelly Jones, Mr Ross Pinney, Mr Jim Swinden and Ms Jennifer Williams. Mr Graham Addison, Dr Anne Fletcher and Hon Dr David Hamill retired from the Committee during the year.





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The Blood Service conforms to the suite of Australian Standards (AS8000-8004) that guides best governance practice. One of these is the Australian Standard for Corporate Social Responsibility. Social, environmental and financial sustainability is of great importance to the Blood Service. We are working to create systems to better measure our environmental impact and will assess ways to improve our footprint. With 83 collection sites nationally, 38 mobile sites and the requirement to transport blood throughout the country, a complex exercise and a long-term commitment. The Blood Service is progressing to increase the level of transparency of our activities reported in our Annual Report, including: product quality metrics, donor and customer satisfaction outcomes, workforce statistics, participation in policy development and environmental metrics, including waste.

Listening to our customers and donorsDonor Satisfaction increased in 2012-13 by one percentage point for the second consecutive year. The year 2012/13 saw key projects for donor services focused on developing strategies to improve the satisfaction of blood donors. The focus on collection processes includes:

Optimising the appointment process for donors;

Enhancing how we communicate with donors and how they provide feedback;

Refreshing our donor centres to provide a more relaxed environment;

Making changes to our workforce to allow our collections staff to have more time with donors.

We look forward to rolling these projects out in 2013-14 and ultimately delivering improved service to all our donors. We hope that these processes will result in a better experience for donors and better return rates.

CORPORATE SOCIAL RESPONSIBILITy(CSR)

Customer service We have continued to focus on improving our service to customers in 2011/12. This year we have again improved the quarterly Customer Satisfaction Survey participation rate with 88 per cent of our customers contributed in 2011/12, up from 84 per cent last year. This, combined with a program of meeting over 60 of our customers across the country, has allowed us to continue to build a clearer picture of our strengths and areas for potential improvement.

The outsourced telephone-based Customer Satisfaction Survey consists of 30-40 questions with 25 per cent of customers surveyed each quarter (approximately 270 customers annually). The survey results were very positive with over 50 per cent of those surveyed indicating a very high satisfaction level, rating us nine or 10 on a 10 point customer satisfaction scale. Customers indicated that our main strengths were:

overall service and professionalism of Blood Service staff;

our ability to supply sufficient quality and quantity of product with accuracy in a timely fashion.

In July 2011 we also implemented a Customer Feedback System which gives our customers another avenue to raise issues and provide positive feedback.

Customers have strongly supported this new system and over 96 per cent of the issues raised have been closed within agreed service resolution time-frames.

This system is allowing the Blood Service to get a better understanding of the main issues that are affecting customers and augments the Customer Satisfaction Survey.

Based on survey and customer feedback data, areas for improvement are:

our ability to deal with customer issues quickly and effectively;

better communication of changes for example.

Labour force dynamicsThe Blood Service is committed to fostering a dynamic workforce free from discrimination, and there have been no reported incidents of discrimination in the reporting period. The Blood Service has a number of policies that matters related to human rights. These include the: Equal Opportunity and Discrimination Policy, and the Illegal and Unethical Behaviour Policy. We comply with the requirements of the Workforce Gender Equality Agency by submitting our report annually.

In 2012/13 the Blood Service employed a total FTE of 3,821 with a 7.4:2.6 female:male ratio. Further information on employment type by gender and years of service are provided in the tables on the following page.

Donor Satisfaction

The Blood Service is committed to fostering a dynamic workforce free from discrimination.

86%

2011

87%

2011

9.75%

2013

89%

88%

88%

87%

87%

86%

86%

85%

9.8

9.75

9.7

9.65

9.6

9.55

9.5

DEFINITIONS

Donor satisfaction: The percentage of top box responses (eight, nine and 10) out of total responses (one to 10)

Probability of return: The average number of donors who respond yes to donating in the next six months of total respondents.

Donor satisfaction Probability of Retention




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Blood Service environmental footprint

Blood component efficiency

The Blood Service has a responsibility to ensure that all aspects of the supply chain including transport, storage and inventory management minimize unnecessary blood component wastage. In 2010/2011 the Blood Service identified the need to establish a Blood Component Efficiency Project to focus on providing efficient use of red cells for manufacture and supply. The project identified root causes of issues and developed remedial methods to increase blood component efficiency.

As a direct result, the Blood Component Efficiency project led to a red cell efficiency improvement of 9.7 per cent (over the duration of the whole project 2010-2013), which equates to approximately 90,000 donations per annum. This is a further 2.7 per cent efficiency improvement from 2011/12.

The activities from this project have now become a part of business as usual within the Blood Service. The Blood Component Efficiency Co-ordinator will support ongoing yield initiatives to further increase blood component efficiencies in 2013/14.

National Inventory Management Framework Project

During 2013, the Blood Service in collaboration with the National Blood Authority commenced work on a pilot for the National Inventory Management Framework project. The project aims to define optimal red cell inventory across the blood sector and implement a better process and guidelines for effective red cell inventory management. The Blood Service expects outcomes from the project will enable a greater ability to respond to demand and reduce wastage across the sector. A proof of concept initiated in 2012/13 demonstrated significant improvements and the potential to define optimal inventory levels and decrease costs.

Waste management services

During 2011/12 the Blood Service commenced work on a review of waste disposal, considering factors such as volume and type of waste as well as disposal methods and costs. A tender process for the supply of waste management services is planned for release in the next 12 months.

International humanitarian blood program

The Blood Service, together with the Australian Red Cross Society has provided technical and policy support to blood services in the Asia Pacific Region and beyond through its International Humanitarian Blood Program.

Projects throughout 2012/13 have included the International Humanitarian Blood Program including capacity building of the blood programs in Cambodia, Indonesia and Papua New Guinea. The Blood Service support for the provision of technical assistance to Cambodia and Papua New Guinea is funded through the United States Presidents Emergency Plan for AIDS Relief program (PEPFAR). Additional medical and technical support is provided through the AusAID Pacific Leaders Training Program and technical assistance to neighbouring countries in the Pacific region.

Employment Type Head Count FTE

Female Male Female Male Total Headcount

Total FTE

Full-Time 1,391 754 1,391.00 754 2,145 2,145.00

Part-Time 1,517 165 973.15 95.57 1,682 1,068.72

Total Headcount 2,908 919 2,364.15 849.57 3,827 3,213.72

years of Service Head Count FTE

FT PT FT PT Total Headcount

Total FTE

35 and over 6 3 6 1.96 9 7.96

Greater than 30, Less than 35 20 13 20 8.61 33 28.61






Under 5 1,189 882 1,189.00 555.27 2,071 1,744.27

Grand Total 2,145 1,682 2,145.00 1,068.72 3,827 3,213.72

NB: This data is valid at 30 June 2013. This is reported differently to last year.

Labour force dynamics

CORPORATE SOCIAL RESPONSIBILITy Continued...


Whole Blood Collection yield

2010/1180.2%

2011/1285.0%

2012/1389.9%




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Ensuring the safety of the blood supply There are multiple checks through the life-cycle of blood components manufactured by the Blood Service to ensure their safety. These occur pre-donation, during donation and post-donation.

Pre-donation

The Blood Service has developed guidelines for the selection of blood donors and all donors complete a confidential questionnaire prior to each donation to ensure that they meet guidelines.

During donation

The donation volume and duration are recorded and used to determine whether the donation can proceed to the next manufacturing step. This occurs for all

donation types.

Post-donation

All donations are tested for the following markers of transfusion transmitted infectious diseases:

Hepatitis B Virus DNA (HBV)

Hepatitis B surface antigen (HBsAg)

Human Immunodeficiency Virus-1 (HIV-1) RNA

HIV-1 & HIV-2 antigen and antibody

Hepatitis C Virus (HCV) RNA

HCV antibody

Human adult T Cell Lyphotropic Virus-I/II (HTLV-I/II) antibody

Syphilis

Selected components (approximately 25 per cent) are tested for antibodies to cytomegalo virus (CMV). The number is determined by inventory requirements for supply of CMV negative components.

Based on donors responses to the donor questionnaire, certain donations are also tested for malarial antibodies.

All platelets manufactured are screened for bacterial contamination.

Other quality and safety measures include:

All donations undergo ABO and Rh D blood grouping and are screened for the presence of red cell antibodies.

Universal leucodepletion of red cell and platelet components.

Manufactured blood components are selected according to a sampling plan for quality control testing against the components specifications

All equipment used during manufacturing and testing of blood components undergo scheduled maintenance programs to ensure their optimal operation

All components are handled and stored in accordance with component specific handling and storage requirements

Processing facilities are fitted with environmental monitoring and controlling systems

Strategies to reduce Transfusion Related Acute Lung Injury (TRALI)Blood transfusion recipients of high volume plasma components such as clinical fresh frozen plasma and apheresis platelets have a potential risk of TRALI. It is thought that HLA/HNA antibodies present in the plasma of the transfused blood components are responsible for TRALI symptoms. Women who have been pregnant are known to have HLA/HNA antibodies.

The Blood Service manufactures predominantly male clinical plasma as a risk reduction strategy for transfusion-related acute lung injury (TRALI). During 2012/13, 100 per cent of clinical plasma supplied by the Blood Service was sourced from male donors. TRALI events reported to the Blood Service continue to decrease significantly.

Blood Service participation in public policy development 2012/13

Risk based decision framework

Since the 1980s, numerous measures aimed at maximising blood safety have been implemented based on varying interpretations of the precautionary

principle and an unsustainable pursuit of zero risk, without evident consideration of cost effectiveness and opportunity cost. The need for a collective, standardised decision-making framework has become clear, in the face of increasing complexity in blood safety decision-making, driven by medical, scientific, ethical, economic, legal, and public policy factors.

The Alliance of Blood Operators (ABO) Risk Based Decision Making (RBDM) Project has been funded by ABO members, AABB, BSI and Hema-Quebec to develop an integrated, internationally applicable decision making framework for the blood sector, entrenched in donor safety and optimal patient outcomes, to guide major policy and operational change. The Blood Service is represented through Peter McDonald on the Steering, Stakeholder Engagement and Health Economics Committees and the ABO Secretariat through the ABO Web Portal Committee. Sheila Ward, currently based in Australia on secondment from the Canadian Blood Service, is the RBDM project manager.

This is a two-phase project that will provide an overall risk framework with a comprehensive set of health economics tools; a stakeholder engagement plan to gather broad input and maximise support; and a web portal. Phase one (April 2013 to March 2014) will form the basis for a draft framework that will be used as a catalyst for consultation with key stakeholders in phase two (beginning April 2014 pending budget approval). Socialisation activities to increase awareness and adoption of the RBDM framework will also be proposed in phase two.

The need for a collective, standardised decision-making framework has become clear.

SAFETy AND EFFICIENCy




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Sustainability of Australias blood supply

During 2012/13 the Blood Service undertook a major research exercise to consider the question of sustainability of Australias blood supply over the next 20 years. The modelling took into account a number of challenges to sustainability including projected population growth, aging population, heavier population, IVIg demand. The final report concluded that self-sufficiency in all blood products in Australia is possible with some improvements to current performance provided there is no IVIg demand spike. The findings, including recommendations for improvements above the current trend and the need for additional growth in the plasma donor panel, will form a critical part in the Blood Services planning activities in the development of the new Strategic Plan.

National efficient pricing for hospital services

In early 2013, Dr Stephen Duckett was engaged by the Blood Service to develop the incorporation of the price of blood into the national efficient price for hospital services in Australia. The key issues considered as part of this review included:

The introduction of the national efficient price should maintain the core philosophy that the patient should continue to receive blood and blood products free of charge, irrespective of hospital setting (ie, public or private);

price signals for blood should be established for both the public and private hospital system;

distinguishing between the costs for blood and blood products in the national pricing framework, and the cost of pricing should be nationally consistent;

costs should clearly reflect the processing and procurement cost of blood and blood products;

potential funding implications exist for states and territories as the National Health reform is based on a 60:40 split, whereas blood and blood products are currently funded on a 63:37 split and should be recognised.

The review made the following recommendations for further consideration by the Blood Service:

Recommendation one: Enhance financial and performance accountability for blood product use by hospitals.

Recommendation two: Devolve blood budgets to hospital funding and allow direct charging of products ordered/used.

Recommendation three: the need for better information to allow appropriate blood and blood product costing standard.

Recommendation four: Pricing for private hospitals.

Distinguishing between the costs for blood and blood products in the national pricing framework, and the cost of pricing should be nationally consistent.


SAFETy AND EFFICIENCyContinued...




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THE BOARD

Associate Professor Larry McNicol

MBBS (Hons), FRCA, FANZCA

- Director of Anaesthesia, Austin Health - Medical Director, Anaesthesia, Perioperative and Intensive Care Clinical Service Unit, Austin Health - Chairman of the Victorian Consultative Council on Anaesthetic Mortality & Morbidity (VCCAMM), Department of Health, Victoria - Chairman of the Mortality Subcommittee of the Australian and New Zealand College of Anaesthetists (ANZCA) - Member of the ANZCA Quality and Safety Committee - Member of the Expert Working Group (EWG) for the National Blood Authority (NBA) Patient Blood Management (PBM) Guidelines Review - Chairman of the Clinical Reference Group (CRG) for the Critical Bleeding - Massive Transfusion and Perioperative Modules of the PBM Guidelines

Professor John Zalcberg, OAM

MBBS, PhD, FRACP, FRACMA, FAICD

- Director, Division of Cancer Medicine, Peter MacCallum Cancer Centre - Former Chief Medical Officer and Executive Director Cancer Medicine, Peter MacCallum Cancer Centre - Chair, Australasian Gastro-Intestinal Trials Group - Honorary Professor, Department of Epidemiology and Preventive Medicine, Monash University - Member, Board of Cancer Trials Australia - Honorary Associate of the Clinical Trials Centre, School of Public Health, University of Sydney

- Co-Chair of the Cancer Drugs Alliance - Former Member, Consultative Council of the Victorian Cancer Agency - Former Member, Board of Cancer Institute NSW - Former President, Clinical Oncological Society of Australia - 2011 Medical Oncology Group of Australia, Cancer Achievement Award recipient

Mrs Gabrielle Hewitson - Secretary

BSc, Grad Dip Bus Admin, GAICD, ACIS, ACSA

- Australian Red Cross Blood Service Secretary

- Previous appointments in Australian Red Cross Blood Service include Assistant Secretary and Distribution Manager at Australian Red Cross Blood Service Victoria

- Member of Governance Institute of Australia

Mr Nigel Ampherlaw

BCom, FCA, MAICD

- Director, CUA (since March, 2011)

- Chair Risk Committee & Technology Committee Member, - Member, CUA Audit Committee and Strategy Committee - Director, Quickstep Technologies Ltd - Director, Grameen Foundation Australia - Former Partner of PwC for 22 years

Ms Sandy Chakravarty

CPA, MBA, MEcon, BEcon, MAICD

- Chief Financial Officer of the Australian Red Cross Society - Head of Asia-Pacific Finance & Global Field Operations and International Controller of The Boston Consulting Group - Vice President Asia-Pacific of Ingersoll Rand - Finance Director of Bristol-Myers Squibb (Australia and Asia) - Board Member of National Association of Women in Operations - Member, Australian Institute of Company Directors

Ms Hannah Crawford

BCom, LLB, CA, FFin

- Director, Grant Samuel & Associates Pty Ltd - Former Board Member, Alfred Health - Former Board Member, Queen Elizabeth Centre - Former Manager, Arthur Andersen Corporate Finance - Former Tax Consultant, Ernst & Young

Ms kelly Jones

MBA, BSc, MACS, FAICD

- Director, Hunter Medicare Local - Former Director and Chair, Citrus Australia - Former Director, NICTA - Former General Manager Technology, NAB - Former CIO and Director, Deutsche Bank - Former Managing Consultant, IBM - Former CIO and Chief Manager, ANZ Bank

Dr David Graham

BPharm, FPS, PhD, FAICD

- Retired from the Australian Public Service most recently as the National Manager, Therapeutic Goods Administration

- Previous roles included the manager of CRS Australia, the Commonwealth Ageing and Aged Care program and the Commonwealth Pharmaceutical Benefits Scheme

- Currently Board member of Arthritis (ACT) and of Arthritis Australia

- Chair, ISO Technical Committee

- Adjunct Professor, RMIT University

Mr Ross Pinney

MBA, BComm, FCA, FCPA, FFin, FAICD

- Former senior executive of National Australia Bank Ltd - Deputy President, Australian Red Cross - Member, Finance Commission of the International Federation of Red Cross and Red Crescent - Chair, Rural Bank Ltd

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Hon Dr David Hamill AM Chair PhD, MA, BA (Hons), FCIT, FAICD

- Former Treasurer of Queensland

- Director, Brookfield Infrastructure Partners LP

- Chair, Gladstone Airport Corporation

- Chair, Envirogen Pty Ltd

- Chair, Ensham Workers Entitlements Fund Pty Ltd

- Chair, Board of the Queensland Museum

- Member, the Australian Red Cross Board

- Chair, UQ College

Jennifer Williams Chief Executive BEc, MSc, FAICD

- Chief Executive, Australian Red Cross Blood Service since March 2009

- Councillor, La Trobe University Council since 2009

- Director, Goulburn Valley Health Board since July 2012

- Former Chief Executive, Austin Health

- Former Chief Executive, Alfred Health

- Former Commissioner, Australian Commission on Safety and Quality in Health Care

- Former Director, Mental Health Research Institute

- 1995 Victorian Business Woman of the Year - Public Sector Category

Board Members who retired during the year:

Mr Graham AddisonFCA, FCPA, BBus, Grad Dip Bus, FCIS, FCSA, FAICD, Grad Dip CSPRetired March 2013

Dr Anne FletcherBSc, MSc, PhD, FAIMS, FAICDRetired December 2012

Mr Jim SwindenBEc, MAdmin, FCHSM, CPA, MAICDRetired December 2012

1 2 3

4 5 6

7 8 9




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30 Donor Services

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THE EXECUTIVE

Mr John BrownExecutive Director, Finance and Chief Financial Officer

CPA, BBus (Accounting), MAICD

- Executive Director, Finance and Chief Financial Officer, Australian Red Cross Blood Service since July 2011 - Former Executive Director, Finance and Corporate, The Royal Childrens Hospital - Former Financial Controller, Manager Financial Accounting and Management Accountant, Austin Health - Previous experience in roles within Victorian State Government and the Commonwealth Government

Mrs Jacqui CaulfieldExecutive Director, ManufacturingB. Bus (Accounting), M. Bus (Manufacturing Management), GAICD

- Executive Director, Manufacturing, Australian Red Cross Blood Service since September 2011 - Joined the Australian Red Cross Blood Service as National Supply Chain Manager - Sixteen years in a multinational packaging organisation with responsibility for the supply chain - Prior experience in project accounting roles in government and commercial organisations

Mr Mark GardinerExecutive Director, Information Services and Chief Information Officer M. Bus (Management)

- Chief Information Officer and Director, Information Services, Australian Red Cross Blood Service since January 2013 - Former Chief Information Officer and Director, Information Technology Services, Alfred Health - Former Chief Information Officer, Eastern Health - Former Information Communication and Technology Manager, Fairfax Media

Ms Anne HeyesExecutive Director, Human Resources

BA (Hons), M.Com, GAICD

- Executive Director, Human Resources, Australian Red Cross Blood Service since 2004 - Former Human Resources Director, Victorian WorkCover Authority - Former Human Resources Director, Bank of Melbourne - Previous experience in general management roles in HR at Myer Grace Brothers, OTC and Telstra - Previous Advisory Board Member, Monash Institute of Medical Research

Dr David IrvingExecutive Director, Research and Development

BSc (Hons), MSc, PhD, GradCertMgt, GAICD

- Executive Director, Research and Development, Australian Red Cross Blood Service since October 2008 - Former Chief Executive Officer, Diabetes Vaccine Development Centre - Former Head of Research and Business Development, Biotech Australia Pty Ltd - Foundation Director, AusBiotech Ltd, Australias biotechnology industry organisation - Former Post Doctoral Fellow, The Rockefeller University, New York and CSIRO, Sydney - Over 15 years experience in biomedical research translation

Dr Joanne PinkExecutive Director, Medical, Transplantation and Quality Services and Chief Medical Officer MBBS, FRACP, FRCPA GAICD

- Executive Director Medical, Transplantation and Quality Services and Chief Medical Officer Australian Red Cross Blood Service since 2006 - Previously Director, Australian Red Cross Blood Service Queensland - Previously Assistant Director, Red Cross Blood Transfusion Service New South Wales - Haematologist with more than twenty years transfusion medicine experience

Mr Peter McDonald

Executive Director, Corporate Strategy and Performance

BA (Economics), MPA, FCPA, MAICD

- Executive Director, Corporate Strategy and Performance, Australian Red Cross Blood Service since 2009 - Councillor, La Trobe University Council - Formerly, Chief Financial Officer, Alfred Health and Austin Health - Eleven years experience in the Victorian public hospital sector with responsibility for finance, information technology, performance monitoring, capital projects, infrastructure and other corporate services - Prior experience in several executive roles within Victorian Government Departments

Ms Janine WilsonExecutive Director, Donor Services

BSc (Physio), MBA

- Executive Director, Donor Services, Australian Red Cross Blood Service since June 2011 - Previous roles included the Executive Director, Strategic Projects, Australian Red Cross Blood Service - Former Director, Business Strategy and Development, New York Blood Centre - Former, consultant at McKinsey and Company

Jennifer Williams

Chief Executive

BEc, MSc, FAICD

- Chief Executive, Australian Red Cross Blood Service since March 2009

- Councillor, La Trobe University Council since 2009

- Director, Goulburn Valley Health Board since July 2012

- Former Chief Executive, Austin Health

- Former Chief Executive, Alfred Health

- Former Commissioner, Australian Commission on Safety and Quality in Health Care

- Former Director, Mental Health Research Institute

- 1995 Victorian Business Woman of the Year - Public Sector Category




20 The Board

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30 Donor Services

32 Finance

34 Human Resources


38 Manufacturing











86 Declaration




AUSTRALIAN RED CROSS BLOOD SERVICE | 2524 | ANNUAL REPORT 2012/13AUSTRALIAN RED CROSS BLOOD SERVICE | 2524 | ANNUAL REPORT 2012/13

kEy PERFORMANCE INDICATORS

The top-level performance indicators for the organisation are reported to the Board, which monitors performance monthly.

kEy FIGURES

Business Processes

Employee engagement

Lost time frequency rate

Number of process related recalls per 10,000 collections

Number of days that the total red cell blood stocks for group O provides less than five days coverage

Percentage of Supply Plan met

% Red cell yield

% Proportion male only clinical plasma

Age at Issue

Red cell supply figure (units)

Total platelet supply figures (equivalent adult doses)

Clinical FFP supply figures (equivalent adult doses)

Total IVIg supply (kg)

% CSL Behring plasma supply met

CSL Behring plasma supply figures (kg)

Plateletpheresis split rate

Donor Management

Donor satisfaction (score of 8 out of 10)

Probability of retention (new whole blood donors)

Customer Satisfaction (health providers)

Overall service provided by Blood Service

FinanceMain Operating Program financial result

Actual 12-13 Target 12-13

75%

8.46

0.41

0

75%

7.83

0.65

0

89.3%

100.0%

9.0

763,551

134,576

147,641

3,623

100%

525,154

67.1%

87%

76%

90%

89%

75%

86%

86.0%

98%

9.0

801,295

134,14

159,024

3,604

100%

525,000

64%

$12.516** million $5 million

* There is no target because our aim is to meet demand. This compares to last years level. ** Main Operating Program result prior to the return of $8.9 million to the National Blood Authority.

(last year)*

(last year)*

(last year)*




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OUR ORGANISATION

Provides advice on legal matters affecting the organisation, including reviewing major contracts. The Legal Counsel is also our Chief Privacy Officer, providing advice on privacy legislation to ensure the organisation does not breach its obligations in relation to personal information. Our Legal Counsel regularly liaises with external stakeholders and is their point of contact on legal matters.

CHIEF EXECUTIVE

Corporate Strategy & Performance

- Strategic Planning and Business Development

- Government Relations and Policy

- Public Affairs and Communication

- Business Process Improvement

- International Services

- Performance and Analysis

Finance

- Financial Performance

- Capital Planning and Property Services

- Financial Accounting

- Procurement

- Finance Information Team

Human Resources

- Work Health and Safety

- Recruitment

- Learning and Development

- Organisational

Development

- Employee Relations

- Human Resources Consulting

- Human Resources Shared Services and Payroll

Information Services

- Infrastructure and End User Services

- Project and Solution Design Services

- Application and Integration Services

- Business Analysis, Validation and Service Management

Manufacturing

National Manufacturing

- Processing and Testing

- Supply Chain

- The Customer Service team

Regional Manufacturing

- Customer Service Delivery

- Processing and Testing

- Manufacturing Services

Medical, Transplantation and Quality Services

- Clinical Leadership Team and Pathology Services

- Donor and Product Safety Policy Unit

- Transfusion Clinical Governance Unit

- Medical Education Unit

National Transplantation Services Quality and Regulatory Services

- Quality Services Regional Teams

- Regulatory Affairs Team

- Quality Systems Development Team

Medical, Transplant and Quality Services

Research and Development

- Applied and Developmental Research

- Clinical Research

- Donor and Community Research

- Transfusion Science Research

- Innovation and Development

Legal Counsel

Donor Services

- National Contact Centre

- National Marketing and Community Relations

- Regional Collection Services




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30 Donor Services

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86 Declaration





The Corporate Strategy and Performance Division supports the Blood Service by providing accurate and timely business data and strategic policy advice that can be used to assist in operational decision- making, planning and performance monitoring.

CORPORATE STRATEGy AND PERFORMANCEThe Corporate Strategy and Performance division supports the Blood Service by providing accurate business data and strategic policy advice that can be used to assist in operational decision-making, planning and performance monitoring. In addition, it is the external interface of the organisation through positive media promotion and the management of national and international stakeholder relations through our International Services team.

Strategic Planning and Business Development

The team manages our strategic and business planning processes, including the translation of overall business priorities into divisional work plans. They also cover risk management, insurance, national project co-ordination, and business development which analyses and develops new business opportunities.

Performance and Analysis

Cognos Reporting The Cognos team is responsible for the timely production of key business reports such as the National Contact Centre Lists, appointments reporting and the donor services collections dashboards.

Analytics Team The analytics team understand the complexities of the Blood Service data both in terms of core systems and internal data warehouses to analyse and support the business in acquiring knowledge.

Business Analysts Utilise technical expertise and knowledge of the business to support the business in acquiring knowledge to solve problems, plan, evaluate and monitor performance.

Business Performance The Business Performance team aid in the development and implementation of a comprehensive business performance measurement process. The team is alsoresponsible the production of our KPI report to the Executive and the Board.

Government Relations and Policy

Government Relations and Policy manages the Blood Services relationship and communications with the National Blood Authority and Commonwealth and State government departments. The team also provides strategic policy advice and coordination.

Public Affairs and Communication

Public Affairs and Communication provides media support and information to promote greater public awareness of blood, plasma and platelet donations. The team also provides expertise in crisis communications, offers advice and support the business and is also responsible for all employee communications and management of the intranet.

Business Process Improvement

Business Process Improvement will develop an approach that uses aspects of methodologies such as Lean Thinking and Six Sigma, as part of the Blood Services commitment to continuous quality improvement. The team will lead a small number of national projects as well as provide training and consultancy advice to managers.

International Services

International Services delivers the Blood Services engagement with global and regional blood networks and alliances, international knowledge exchange, scanning, benchmarking and humanitarian blood programs.

AUSTRALIAN RED CROSS BLOOD SERVICE | 2928 |

The Corporate Strategy and Performance (CS&P) division this year designed new data reporting and analysis systems to enhance customer service; and continued to assist developing countries in our region to develop their own safe blood systems.

Throughout the year, the CS&P division also built on the Blood Services expertise in working with biological products via an agreement with the Victorian Institute of Forensic Medicine to support the future sustainability of the Donor Tissue Bank of Victoria. CS&P also supported the Blood Services leadership role in international blood supply networks.

Mr McDonald said the CS&P division had also completed extensive work on development of a Donor Engagement Strategy (DES). This model allows the Donor Services division to gather the characteristics of individual donors to ensure that donor centres have the right mix of donors and are therefore in the best position to meet collection targets.He said part of the aim of the DES was to improve donor engagement via tailored communications, based on their current donation practices.

The DES is looking at the characteristics of individual donors such as whether they are regular donors, donors who give in times of need or Christmas donors and also their biological profiles such as whether they are an O Negative donor, Mr McDonald said.

Once we know this, we can personalise our call centre communications such as encouraging the once-a-year donors to come in more often, for example. Every donor is valuable, but we believe this system will allow donors to donate blood in the most valuable way and at the most valuable time. We will also be able to increase donor satisfaction,

and hence retention, by engaging with donors in the way that is most appropriate for them.

We also worked closely with Donor Services this year to enhance our donor reminder system.

We now send out SMS text reminders five days before an appointment and one day out with a hydration message, an initiative that has proven to be a great success.

The SMS reminder allows donors to cancel their appointment if the time is no longer convenient which allows our Donor Centres to run more smoothly leading to an improved donation experience for those attending while easing the workload on our call centre staff.

CS&P also worked very closely with the Manufacturing division to establish a Rapid Improvement Event (RIE) program. A rapid improvement event refers to a dedicated group spending three to five days improving a focused area or process. It is a way for teams to carry out structured, but creative problem solving and process improvement, in a workshop environment, over a short timescale.

Eighteen front line staff were trained in Lean Manufacturing principles and how to run a RIE event. The first wave of seven events were conducted, and delivered significant productivity improvements across the processing centres.

Mr McDonald said the agreement to work with the Victorian Institute of Forensic Medicine was a first step in providing further support to the tissues sector and expanding the Blood Services network of health partners. He said links with international blood services also allowed for improved performance in Australia through

information exchange, benchmarking and comparison.

The Blood Services participates in three key blood networks including the Alliance of Blood Operators, the Asia Pacific Blood Network and the Global Advisory Panel for Blood Services in Red Cross and Red Crescent Societies, he said.

Engagement in these networks not only strengthens our performance in Australia through the exchange of knowledge, but such collaborations also allow us to contribute globally to blood sector policy discussions.

The CS&P division continued this year to provide expertise to Indonesia, Cambodia and Nepal to help health authorities formulate national blood policy and legislation, develop donor marketing and recruitment strategies and establish clinical governance, quality management and laboratories to enable them to create their own safe blood supply systems.

This is very intensive work but enormously worthwhile, particularly in Cambodia where we are now in the process of helping our international colleagues implement the five year strategy we designed with them, he said We have also upgraded our corporate reporting platform to the latest software and new hardware which will improve report run times, and over time, improved charting and dashboard interaction.

The upgrade to Cognos 10.2 is a key milestone in delivering the organisations vision for efficient and intuitive reporting. Another benefit is that the turnaround time on report development will be shorter, Mr McDonald said.

Mr Peter McDonald

Executive Director, Corporate Strategy and Performance





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We are responsible for managing blood donations, national marketing, contact centre operations and building community relations, all of which play central roles in allowing us to ensure that blood components and products are collected as required.

The Donor Services division manages the end-to-end blood donor experience. We are responsible for managing blood donations, national marketing, contact centre operations and building community relations, all of which play central roles in allowing us to ensure that blood components and products are collected as required. In doing so, we contribute to the organisations strategic objectives by providing great service for our donors, improving organisational capability, and providing value for stakeholders by ensuring that blood components are available when patients need them.

National Contact Centre

The National Contact Centre seeks to ensure that donors are scheduled to donate at a time that meets supply requirements, whilst improving donor frequency and retention. The National Contact Centre works with the Supply Chain, Public Affairs and Communication, Marketing and Community Relations teams to assist in booking donor appointments that allow Donor Services to meet our collection targets which ensure that the organisation meets demand.

National Marketing and Community Relations

National Marketing and Community Relations is responsible for the recruitment of new donors as well as contributing to the retention and frequency of existing donors. It is also responsible for brand stewardship. This is achieved through the development of strategic marketing programs and the design of local activities to ensure an excellent donor experience. Marketing also works with the Public Affairs and Communications team to promote and protect the image and reputation of the Blood Service.

Regional Collection Services

Collection Services is the public face of the Blood Service and is responsible for the collection of whole blood, plasma and platelets from volunteer donors in 83 fixed donor centres and 38 mobile units that visit over 1000 sites annually.

DONOR SERVICES

AUSTRALIAN RED CROSS BLOOD SERVICE30 | AUSTRALIAN RED CROSS BLOOD SERVICE30 | | 31

This year the Donor Services division collected enough plasma to meet the ambitious target of 525 tonnes which represents a 19 per cent increase in plasma collections from the previous year. This plasma is processed into a range of life-saving products by CSL Behring in the interests of Australian patients.

Executive Director of Donor Services, Ms Janine Wilson described the result as an outstanding achievement in a year of lower whole-blood collections due to a reduction in red cell demand. Ms Wilson said that detailed planning, improved communication between the Donor Services and Manufacturing divisions and the use of sophisticated forecasting tools has allowed the Blood Service to meet required national blood needs.

This was an extremely favourable year in terms of our plasma collections and also our ability to match the demand cycle for fresh blood components, she said. We now have very sophisticated systems in place that allow us to see potential shortages or spikes in demand for particular blood products and launch into action before they occur.

Ms Wilson also said that part of the success this year was attributable to the increased focus on improving the donor experience to ensure the reliability and sustainability of our donor panels. Our division has been hard at work on a range of initiatives to decrease waiting times, improve communications and adjust the flow of donors through the blood donation process.

We have extended our opening hours at donor centres across the country, making it easier for donors to find a convenient time to come in and give their life-saving gift. We want to give donors as much opportunity as possible to attend appointments that suit them,

and in turn create greater predictability of appointment schedules. Weve personalised our communication to improve the level of service that donors experience.

To do this, the Donor Services division has built a better understanding of the elements of service that are most important to our donors, developed rules that guide how well contact different types of donors throughout their donation career, and tailored communications for individual donors using existing technologies.

Ms Wilson gave the example of the new appointments reminder system that was implemented last year to make the donation process as seamless and easy-going as possible for donors. Donors are now reminded about their appointment by text message. One message arrives five days before their appointment and the second message acts as a helpful reminder about donation preparation the day before their appointment.

We have also made cancelling appointments even easier. Now donors can cancel by replying to one of these reminder text messages which helps us fill appointments instead of having empty donor chairs a win-win for everyone. The new system has been so successful that non-attendance rates have dropped by 25 per cent over the year. Now we can confidently focus on encouraging donors to commit to future appointments because weve made it easier for them to move their appointments around if something comes up.

This marked decrease in non-attendance rates has also allowed our National Contact Centre staff to focus their attention on calling lapsed donors and

donors with blood types we need during periods of peak demand such as winter.

This is a wonderful example of the collaboration and combination of expertise within the Blood Service to develop systems that enable us to consistently collect and supply safe blood and blood products across the nation.

Ms Wilson said another focus of the year had been the introduction of a national design blueprint for all future donor centre fit-outs which would save the Blood Service money by streamlining tenders for equipment and furnishings and also deliver a consistent donation experience across Australia.

Blood donors are so important to the Blood Service. We value their time and generosity and want them to have the best possible experience every time they give blood, she said. We want our donors across the country to receive a consistent level of service and know that each donor centre will be clean, appealing and efficient so their experience is a pleasant one. This initiative, developed in co-operation with the Finance Division and Marketing team, will also provide cost savings through national tenders for stock and equipment and improve the operation of our centres through more efficient work flows. After years of detailed strategic work and the on-going commitment of all our staff, it is wonderful to be in a position to describe this year as such a success. On behalf of the Blood Service, I would like to thank our wonderful donors for their continued support and generosity.

Ms Janine Wilson

Executive Director, Donor Services

| 31ANNUAL REPORT 2012/13




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AUSTRALIAN RED CROSS BLOOD SERVICE | 3332 | ANNUAL REPORT 2012/13ANNUAL REPORT 12/13

Financial Performance provides financial and accounting support to all Blood Service divisions.

FINANCE

Financial Accounting

Financial Accounting is responsible for the preparation and integrity of the financial results which includes monthly financial and annual statutory reporting, the treasury function, transaction processing including accounts payable and receivable, internal and external audit activity and Oracle system support.

ProcurementProcurement is responsible for ensuring compliance to the Blood Service procurement policy, providing support to all divisions during tender processes, assisting with subject matter expertise in sourcing products, goods and services, negotiating with key suppliers and for the administration of national contracts.

Finance Information Team

Finance Information Team conducts organisation-wide budgeting and, forecasting, and provides product costing, specialist financial information, management reporting and benchmarking.

AUSTRALIAN RED CROSS BLOOD SERVICE32 | AUSTRALIAN RED CROSS BLOOD SERVICE32 | | 33

Shifting the focus from regional to national management of construction and property matters through the establishment this year of the Capital Planning and Property team is already achieving benefits and savings for the Blood Service, according to Chief Financial Officer Mr John Brown. Mr Brown said the team which includes a National Construction Manager, National Leasing Manager and National Facilities Manager was now in the process of gaining efficiency dividends through developing standardised approaches to property matters across Australia.

He said the creation of the new team had already proven of great benefit through the development of Donor Centre Design Guidelines, the negotiation of better leasing costs and conditions and the development of a Donor Centre Capital Works Master Plan to guide long-term capital replacement and refurbishment for donor centres.

The Blood Service has 120 sites around Australia, including 80 donor centres which are in leased space in cities, suburbs and regional towns around the country, Mr Brown said.

In the past, most of our property matters were handled at a local level, without a standard approach in place to guide upgrades, refits, internal design or even site selection.

Now with the recruitment of these property specialists, we can negotiate from a stronger position on our leases and we now have national design guidelines which provide a standard design to create safe, clean and efficient donor centres.

This saves us money because we no longer have to design a new donor centre from scratch while other work

conducted by the team will allow us to know the most suitable location for new centres and which need upgrading in order of priority.

Mr Brown also praised the work of the Procurement team which this year achieved savings for the Blood Service of $1.8 million through the development and implementation of rigorous tender and purchasing systems.

He said that due to this remarkable success, a revised target had been set to achieve $6 million in savings in five years by June 2015.

The Blood Service requires considerable materials - from consumables to highly sophisticated equipment such as centrifuges and apheresis machines - and these savings were made through Procurement Team members assisting in the tender process and ensuring contract conditions were met, Mr Brown said.

This year the Blood Service also assumed the Secretariat role of the International Benchmarking Cost Model Working Group which includes representatives of the American Red Cross as well as from the blood services of New Zealand, Canada and England.

Mr Brown said the aim of the organisation was to allow each country to compare collection and production costs with the aim of identifying efficiencies.

Through this working group we compare how much it costs to collect, test, process and deliver blood and blood products, along with labour rates and productivity, even down to the price of consumables to see if we can change processes or suppliers to achieve savings, he said.

This is only the third year that the organisation has been meeting yet it has come to be regarded so highly that we expect the Blood Services of Japan and Holland to join soon.

We are now building up very useful data sets to guide us in the future and we could even join with other blood services in tendering for products or equipment to achieve savings through economies of scale.

Mr Brown also said he was proud of the work done by the Finance division in finalising the funding agreement with the National Blood Authority for the next three year cycle which reduces risk to the Blood Service while enhancing funding certainty.

This has been a very successful year for the Blood Service and the Finance division, he said.

Finalising the funding agreement was a fantastic outcome and the results achieved by the Property team have been better than I could have imagined.

| 33

Mr John Brown

Executive Director, Finance and Chief Financial Officer

The Finance Division manages organisational funding and provides financial information, reporting, analysis and advice to support effective decision making and performance improvement across the organisation. It is responsible for the sound financial management and integrity of the Blood Service.

Financial Performance

Financial Performance provides financial and accounting support to all Blood Service divisions. Our key responsibilities include developing divisional annual budgets and reporting on monthly financial performance and forecasts, managing output based funding arrangements with the National Blood Authority, liaising with State Governments on funding of external services such as Tissue Typing, Bone Marrow Donor centres and the DonateLife organ donor services across the jurisdictions, National Fleet Management and providing financial and commercial analysis to internal stakeholders for decision making.

Capital Planning and Property Services

Capital Planning and Property Services is responsible for the leasing, construction and facilities maintenance of all fixed and mobile donor centres and overseeing major construction projects in processing centres and other facilities while our Strategic Investment Group manages capital control and governance and supports the Blood Service in the development and review of business proposals.





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86 Declaration




AUSTRALIAN RED CROSS BLOOD SERVICE | 3534 | ANNUAL REPORT 2012/13ANNUAL REPORT 12/13

The Human Resource division works across the organisation to improve the sustainability

blood service annual report 2013

Documents