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Health Services AustraliaAnnual Report 2000–01
HSA1028_cover_for pdf 27/11/01, 11:27 AM1
02 Letter tabling report
03 Message from the Board
07 Corporate profi le
09 The year in review
13 Organisational structure
15 HSA services
17 Occupational health and safety
21 Travel health services
23 Centrelink assessments
25 Immigration services
26 Business innovation
29 Our people
33 State and Territory news
41 Gulf War Health study
43 Tribute – Dr Michael Pincus
44 Directors’ Report
49 Directors’ Declaration
50 Audit Certifi cate
52 Statement of Financial Performance
53 Statement of Financial Position
54 Statement of Cash Flows
55 Notes to and forming part of the fi nancial statements
75 Contacts
Contents
ISO 9002Lic No. 11622Standards Australia
2 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 3
The Honourable Grant TamblingParliamentary Secretary to the Minister for Health and Aged CareParliament HouseCANBERRA ACT 2600
Dear Senator Tambling,
I have pleasure in submitting Health Services Australia’s (HSA) Annual Report for the year 1 July 2000 to 30 June 2001.
The report has been prepared in accordance with the requirements of the Corporations Act 2001, Commonwealth Authorities and Companies Act 1997, the Government Business Enterprise Governance Arrangements and the guidelines issued by the Department of Prime Minister and Cabinet (‘Guidelines for the content, preparation and presentation of annual reports by statutory authorities’).
The fi nancial year 2000–2001 represented our fourth consecutive year of growth and saw the Company achieve a record profi t. The main factors impacting on business growth were a strong client focus, commitment to superior service, expansion into new service areas (Gulf War Health Study, Defence Recruiting) and diversifi cation of client base.
While noting our achievements over the past twelve months, the report also looks to the future, outlining strategies and plans for our long-term viability and continuing success.
Yours sincerely,
Rae Taylor AOChairman
October 2001
The Company has performed strongly in
2000–01, signifi cantly outstripping the sound
performance achieved in previous years and
recording healthy growth in revenue, in
profi t, in service volume, in clients and in
staff numbers.
Revenue increased 19% to $49.7 million,
resulting in an operating profi t before tax
of $9.0 million (after tax $5.9 million), up
154% on last year. The Company pays all Commonwealth taxes and charges and pays to the Commonwealth
amounts in lieu of State taxes. In respect of 2000–01, HSA will pay $8.0 million ($4.2 million last year) in
taxes and dividends.
The commitment of management and staff to our vision of “Excellence, Innovation and Integrity in Health”
provided the framework for us to strengthen existing client relationships, successfully tender for major
contracts, introduce new services and diversify our client base. Our approach going forward will be to continue
to put clients at the centre of our decision making processes and to maintain our focus on our corporate vision.
Message from the Board
1st Floor, 15 Bowes Street Woden ACT 2606, PO Box 281 WODEN ACT 2606
Telephone: 02 6269 2100 Facsimile: 02 6269 2180
4 Health Services Australia: excellence, innovation and integrity in health
Health Services Australia: excellence, innovation and integrity in health 5
ExcellenceA key area which differentiates us from our
competitors is our capacity to respond to the
signifi cant changes which can occur in the
requirements of our many national clients,
particularly our government clients.
Our work with Centrelink saw a 19% increase in
referrals in 2000–2001, compared with the previous
year, with a dramatic increase simultaneously
recorded in requests to perform health assessments
on all new arrivals at Immigration Detention Centres.
HSA is regularly required to dispatch doctors
and other health professionals to remote locations
such as Woomera, Port Hedland, Curtin and
Derby, sometimes at only half a day’s notice.
Health assessments form a vital role in detecting
and managing public health risks in order to
protect the safety of both detainees and the
Australian community.
These projects, together with our involvement in
the provision of pre-recruitment medical
assessments in a pilot project for the Australian
Defence Force in Victoria and Tasmania, require
an extraordinary degree of organisational
responsiveness. They often involve rapid
mobilisation of professional staff, an ability to
deliver services under extremely challenging
conditions and against tight deadlines at remote
locations around Australia.
Our success in meeting these challenges attests
to the excellence of our people who readily make
themselves available for deployment wherever
they are required by clients.
InnovationResearch and Development (R&D) was a priority for
2000–01, with roll-out of an R&D program focusing
on ways to further enhance existing services and
meet the evolving needs of our clients.
Our R&D program led to innovation in a number
of areas. This included the development of unique
programs to assist organisations manage shift
worker health, absenteeism, call centre related
health and stress issues, and the development of
protocols to help manage audio-shock and the
ever evolving travel related health risks.
Our occupational physicians and clinical
psychologists also developed specially tailored
pre-employment assessments for specifi c
employers, including the Australian Taxation
Offi ce and Australian Protective Services. This
results in a better job/employee match for those
organisations’ unique requirements, reducing the
risk of workplace injury and costly litigation.
IntegrityWe pride ourselves on delivering national
consistency in every service we undertake, be it
in Woomera, Broken Hill or our Capital Cities.
This is of central importance to Centrelink and the
Department of Immigration and Multicultural Affairs,
for whom the independence, integrity and rigour of
our medical assessments is absolutely crucial to
ensure budgetary commitments are appropriately
targeted and public health risks are identifi ed and
scrupulously managed.
In order to continue to underpin the integrity and
national consistency of our services, we created two
new management roles. A Lead Medical Practitioner
to oversee the continued development of nationally
consistent medical protocols tailored to individual
clients requirements, and a National Operations
Manager, to ensure our processes are always
nationally consistent and assume responsibility
for national project management.
Our ability to adhere to strict national protocols
and deliver high quality services on a uniform
national basis was an important factor in our
successfully tendering for 20% of Centrelink health
assessment business, the awarding of a 12 month
national contract with Nortel, and our work on an
epidemiological study of Gulf War Veterans’ Health,
which we are conducting with Monash University.
Looking AheadThe future continues to hold many challenges,
but with a strong management team and staff
committed to quality client service, the Company is
well positioned to successfully meet any challenges.Mr Rae Taylor AO Ms Vanessa FanningChairman Managing Director
Our priorities in the coming year include to:
• retain, grow and diversify our client base;
• enhance our service reputation and Quality
Systems; and
• attract, retain and develop high quality
professional staff.
We remain committed to staff development and
providing a work environment that is responsive to
the demands of balancing work and home life,
including fl exible work hours, and part time and
sessional employment.
On behalf of the Board we would like to thank staff
for their outstanding efforts and clients for their
on-going support. We look forward to 2001–02 as
we forge new partnerships and work together to
build an even stronger business.
6 Health Services Australia: excellence, innovation and integrity in health
Health Services Australia: excellence, innovation and integrity in health 7
Corporate proÞ le
Health Services Australia (HSA), established in 1997, is the only organisation in Australia offering a truly
national one-stop-shop in work-related health, safety and travel. No other health organisation offers the same
depth and breadth of services delivered through an extensive operational network which spans the nation,
taking in every Capital City and extending into rural and remote Australia.
Our expertise lies in:
• workplace health and safety services;
• pre-employment assessments;
• overseas travel vaccinations and health advice;
• medical assessments for government benefi t and pension applicants; and
• medical assessments for immigration applicants.
We have a diverse workforce of more than 450 employees, committed to innovative, cost-effective, superior
service delivery. Our people include doctors, nurses, psychologists, occupational therapists, administrators,
marketers, fi nance and IT experts.
We operate from 13 offi ces. We have an offi ce located in every Capital City and a number of regional centres
around Australia. Our offi ce structure is supported with a unique national network of doctors and nurses,
enabling us to service clients beyond the cities into rural and remote areas like Mount Isa, Alice Springs and
Thursday Island. Our head offi ce is in Canberra, ACT.
HSA Offi ces, Clinics, Approved Medical Practitioners (AMP) locations
Health Services Australia: excellence, innovation and integrity in health 9
excellence, innovation
and integrity in health
A commitment to excellence, innovation and integrity in health underpinned HSA’s actions during this fi nancial year, resulting in a record profi t and the fourth consecutive year of growth.
Our ability to continue to grow and return sizeable profi ts is particularly signifi cant given Australia’s increasingly competitive healthcare environment.
The last 18 months have witnessed a surge in general practice corporatisation leading to consolidation in the historically fragmented private healthcare sector. The result has seen the development of new national healthcare organisations keen to compete in HSA’s traditional marketplace.
HSA has met this challenge head on. Our national on-the-ground presence combined with our constant client focus and high quality, innovative services has enabled us to win major national tenders, grow business with existing clients and expand into new service areas. These achievements enhance HSA’s reputation in important professional and operational areas and bring positive outcomes to the community.
The year in review
excellence
innovation integrity
10 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 11
Our ability to continue to grow and return sizeable profi ts is particularly signifi cant given Australia’s increasingly competitive healthcare environment
Corporate AchievementsGrowth: fourth consecutive year of growth in
services, with overall growth of 24.6% achieved by
the Company during this fi nancial year; growth was
particularly signifi cant in occupational health and
safety and immigration services.
Profi t: recorded a record profi t; total revenue grew
by 19% compared to last year resulting in a 154%
increase in profi t before tax; profi t resulted from
a combination of growth in volume of services and
greater effi ciencies.
Acquisition: an acquisition offer was made by HSA
to Australia’s leading provider of travel health
services, Travellers Medical and Vaccination Centre
(TMVC); the acquisition, to be fi nalised in 2001–02,
will signifi cantly extend our client base and bring
additional revenue of around $5 million per annum.
Centrelink tender: HSA successfully tendered for
20% of Centrelink’s medical assessment services; the
win saw HSA retain metropolitan Brisbane business
and win back work in country Queensland and
Western Melbourne which had been lost in a 1997
tender; a contract has now been signed covering all
Centrelink work to June 2002.
Property purchase: purchased a building in
Hobart’s CBD to enable transfer of the Hobart offi ce
to larger premises.
GST: successfully implemented all tax reform
changes.
Service InnovationTailored services: developed pre-employment
assessments tailored to particular needs of specifi c
industries; this approach helps decrease the risk
of work-related injuries and legal challenges from
unsuccessful applicants.
Absenteeism: completed a six-month pilot of a
unique HSA-developed absenteeism program
designed to assist organisations manage
absenteeism; early results are proving positive.
Shift Work: an in-house occupational health
physician conducted research into the OH&S
implications of shift work, results are being used
to develop a shift work management protocol.
DVT: in response to the emergence of deep vein
thrombosis (DVT) as a signifi cant travel health issue,
developed a DVT fact sheet and are producing a
questionnaire to assess travellers’ risk and provide
appropriate risk management advice and products.
DiversificationGulf War: in partnership with Monash University,
began work in September 2000 on a Gulf War
Health Study, to assess the health of Gulf War
veterans against a control group; this represents a
new service area made possible through our unique
national network of medical practitioners.
Defence Recruiting: in conjunction with
Manpower Australia, undertook a recruitment
pilot in Victoria and Tasmania for the Australian
Defence Force (ADF); HSA conducted the medical
assessment component of the recruiting process;
a decision on possible national roll out of the pilot
is expected in the new fi nancial year.
F111: successfully tendered to undertake health
assessments as part of a national health study on
F111 crew involved in fuel tank maintenance;
the project, to be undertaken on behalf of the
Departments of Defence and Veterans’ Affairs,
will roll out next fi nancial year.
WSG: our rehabilitation provider partner,
Work Solutions Group (WSG), established offi ces
in Canberra and Sydney and began servicing
clients out of HSA’s Adelaide offi ce, enabling us
to introduce return to work and rehabilitation
services to new markets.
Navigator climbing into an F111C aircraft. HSA is conducting the health assessments for the F111 National Health Study.
Health Services Australia: excellence, innovation and integrity in health 13
Organisational structure
HSA, a Government Business Enterprise, is wholly owned by the Australian Government and is accountable to
its shareholders*, the Minister for Finance and Administration and the Parliamentary Secretary to the Minister
for Health and Aged Care. It is managed by an independent Board of Directors.
The Board appoints the Managing Director (MD) to oversee the operational aspects of the business. Each State
and Territory business, except for NSW, is headed by a general manager who is responsible to the MD for
operations and performance in their business units, including quality assurance and clinical standards.
In NSW, management is devolved to the three general managers managing our major offi ces at Sydney Central,
Parramatta and Newcastle, and is coordinated by a Board of Management, comprising the three NSW-based
general managers and a fi nance manager. The Board is chaired by the MD.
The Company has an issued share capital of $13.3 million and in 2000–2001 had a turnover of $49.7 million and
an asset base of $30 million.
HSA is required to pay all Commonwealth taxes and charges and pay a dividend to shareholders. It is also
required to pay the Commonwealth amounts in lieu of State taxes.
*Under the Commonwealth Authorities and Companies Act Senator Grant Tambling, Parliamentary Secretary to the Minister for Health and Aged Care, is the responsible Minister in respect of HSA. Under the Government Business Enterprise Governance Arrangements the Minister for Finance and the Parliamentary Secretary for Health and Aged Care are recognised as shareholder Ministers.
Ms Vanessa Fanning Mr Peter Moody Dr Peter Vodicka Managing Director Chief Financial Offi cer/ Manager Health Company Secretary Assessment Service
Mr Andy Gates Ms Leanore Aro Mr Stan Macionis Mr Peter O’Keeffe South Australia General Manager Victoria General Manager Queensland General Manager IT Manager
Ms Jenny Empson Mr Bob West Dr Robin Taylor Dr Ian Payne Australian Capital Territory Manager Support Services Sydney General Manager Tasmania General Manager General Manager
Dr Richard Saker Dr Mary McGinty Dr Harry Schwarz Dr Barbara Bell Western Australia General Manager Newcastle General Manager National Operations Manager Parramatta General Manager
our managers
Health Services Australia: excellence, innovation and integrity in health 15
HSA services
Health Services Australia provides a range of competitively priced, high quality professional services,
tailored to meet the needs of individual clients. We specialise in providing independent health assessments
and advice rather than hands on medical treatment or rehabilitation, remaining free from confl ict of interest.
Information on the following key services is provided in this section:
Centrelink health assessments Migrant health assessment services Occupational health services International travel health services
Centrelink health assessments
Migrant healthassessments
Occupationalhealth services
International travel health
services
Health Services Australia, number of services by business line
(‘000
)
Eligibility Assessments Immigration Occupational Health Travel Health
FY98/99 FY99/00 FY00/01
150
120
90
60
30
0
Health Services Australia: excellence, innovation and integrity in health 17
Occupational health and safety
HSA offers the most comprehensive occupational
health and safety service (OH&S) of any organisation
in Australia. Our breadth of services combined
with our nationwide on-the-ground presence
enables us to successfully meet all the OH&S needs
of employers and employees from recruitment to
retirement, anywhere in Australia.
During this fi nancial year, OH&S business
experienced exceptional growth of 46%. A key factor
driving this was the implementation of a strategic
plan to focus attention on specifi c industries (call
centre, transport, insurance and recruiting), and the
tailoring of existing services to meet individual
industry needs. This was further enhanced by the
introduction of innovative services and work
associated with national projects.
National Health Studies: Gulf War Veterans
Health Study – In partnership with Monash
University and Department of Veterans’ Affairs,
began work on a national study to assess the
health of Gulf War veterans, opening up a new
service area.
F111 Health Study – HSA won a tender to conduct
health assessments as part of a national study of
F111 crew involved in fuel tank maintenance. This
project will roll out next fi nancial year.
Defence Recruitment Medical Assessments:
in conjunction with Manpower Australia, undertook
a recruitment pilot in Victoria and Tasmania for
the Australian Defence Force (ADF). We were
responsible for the medical assessment component
of the recruiting process.
Major Contracts: awarded a 12-month contract
to deliver OH&S and travel services to Nortel
employees nationally. Early work has focused on
assessing exposure to lasers and radio frequencies
and on travel assessments.
Experienced an 85% increase in revenue from
work undertaken for Military Compensation and
Rehabilitation Services (MCRS), due to MCRS
expanding HSA’s area of responsibility to cover WA
and TAS. A central aspect of the new work involved
reviewing 150 back-logged cases in Perth against
extremely tight deadlines. This was achieved with
the support of neighbouring States who supplied
additional occupational physicians to Perth to help
meet the timelines.
Absenteeism: we completed a six-month pilot of
a unique absenteeism program (Happy, Healthy,
Here), developed by HSA to help organisations
manage absenteeism. The pilot involved undertaking
a detailed analysis of the workplace in relation to Managing in a Call Centre environment is challenging and HSA gives me access to professional health services and advice
18 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 19
absenteeism issues and identifying strategies to
address the issues. Early anecdotal evidence
appears positive.
Shift Work: following a client request, researched
the OH&S implications of shift work for staff and
employees. The results are currently being used to
develop a shift work management protocol.
Call Centres: as a result of the emergence of the
phenomenon “audioshock”, HSA has put in place
protocols to actively monitor research into the
condition both nationally and internationally.
Results will be fed into work currently being
undertaken internally to develop models to help
assess and manage the condition.
Tailored Services: in-house specialists
developed pre-employment assessments tailored
to specifi c industries. The process involves
identifying the essential physical/medical qualities
necessary to undertake identifi ed tasks and the
development of a medical assessment to help
select the most appropriate candidate.
Infl uenza Vaccination Program: achieved a
14% increase in the number of vaccinations
compared to last year. Key to the program’s
success was a nationwide marketing campaign
highlighting the cost to business of lost
productivity through illness from infl uenza.
Marketing efforts comprised direct mail and
letterbox drops.
Work Solutions Group: the second year of
partnership between HSA and Melbourne-based
specialist rehabilitation provider, Work Solutions
Group (WSG), continued to see a broadening of the
customer base for both organisations.
The partnership was created to provide a fully
integrated network able to meet all the occupational
health and safety needs of employers and employees
in a coordinated and cost-effective way. Our
ability to achieve this continues to grow as WSG
expands services beyond Victoria. This year saw the
establishment of WSG offi ces in Canberra and
Sydney and the commencement of services out of
HSA’s Adelaide offi ce.
Promotion Activities: undertook a range of
promotional activities to raise the profi le of
HSA’s OH&S services. This included having
HSA occupational physicians address various
conferences, attend scientifi c meetings, conduct
seminars on absenteeism and publish articles on
workplace health issues, including audioshock
and call centre health issues.
Around Australia, other HSA efforts also included
attendance at major trade shows and conferences,
particularly in relation to call centres, insurance
and transport.
OH&S services
Absenteeism management programs
Drug & alcohol screening
Ergonomic workplace assessments
Executive medicals
Exit medicals
Fitness for duty assessments
Health & lifestyle screenings
Post-exposure medicals
Pre-employment medicals
Psychiatric assessments
Psychological assessments
Rehabilitation & return to work
Stress management
Toxic hazard advice & screening
Vaccination (infl uenza, Hepatitis A&B, Q fever)
Workplace education programs
HSA offers the most comprehensive occupational health and safety service of any organisation in Australia
Health Services Australia: excellence, innovation and integrity in health 21
Travel health services
The principal aim of travel medicine is to protect
the health of travellers through education,
vaccination and up-to-date advice on keeping
healthy while travelling.
Travel Health Australia offers a comprehensive
service targeted to those who are visiting or being
posted overseas, including vaccinations, check-ups
to diagnose pre-existing medical conditions, and
travel health advice and tips.
The benefi ts of accessing comprehensive travel
health services are many:
• decreases risk of becoming ill overseas;
• limits expenses associated with overseas
health treatments;
• peace of mind – many overseas healthcare
facilities are either lacking or very expensive;
• limits excessive repatriation costs ($60,000
– $100,000 plus); and
• enhances the chance of safe, happy enjoyable
travel.
Travel health has been targeted as a priority
business area for the future, with an offer made
by HSA to acquire the travel health services
company, Travellers Medical and Vaccination Centre
(TMVC). During the year, funding for marketing
and promotional activities was also increased,
development of travel health informational materials
became a priority, and a revamp of the HSA website
included a major focus on travel health.
Acquisition: travel health received a major boost
with HSA making an offer to acquire Australia’s
leading provider of travel health services, TMVC;
TMVC is represented in every Capital City as well as
a number of regional centres; the acquisition, to be
fi nalised in 2001–02, enhances our ability to provide
travel health services nationwide.
Promotion: successful marketing activities
undertaken at State and Territory level included
direct mail campaigns, presentations to travel
agencies and attendance at travel seminars.
Website: to better meet client needs and add value
to our services, a complete re-design and upgrade of
HSA’s website (www.healthoz.com.au) was
undertaken; travel health was a major focus of the
revamp and the new site contains essential travel
health service information and news, plus free
travel-related fact sheets.
DVT: travel-related blood clots, deep vein
thrombosis (DVT), developed as a signifi cant health
issue this year; as part of our advisory and educative
role, developed a fact sheet on DVT and are in the
process of developing a questionnaire to assess
individual travellers’ risk and provide appropriate
preventative advice.
Travel Accessories: developed a basic traveller’s
fi rst aid kit which can be tailored to specifi c needs
by the addition of items based on destination and
individual traveller health; kits can be ordered from
any HSA offi ce.
HSA specialises in protecting the health of international business travellers
22 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 23
HSA conducts independent medical assessments on
behalf of Centrelink to assist in determining medical
eligibility for the Disability Support Pension (DSP) and
Sickness/Newstart Incapacity Allowance. These
benefi ts are paid by the Commonwealth Government
to people who are assessed as having a continuing
inability to work due to a signifi cant physical, mental,
intellectual or sensory impairment.
HSA continues to implement measures to make our
service delivery more fl exible and cost-effective and
to enhance the quality, consistency and turnaround of
assessments. The impact of these measures saw HSA
well positioned in 2000–2001 to respond to and meet
client needs in a rapidly changing market.
Tender: Centrelink tendered eligibility assessment
business in areas Brisbane, North and Central
Queensland and West Victoria, representing 20%
of Centrelink’s total assessment business; HSA
won the tender, resulting in retaining metropolitan
Brisbane business and winning back work in areas
which had been lost in a 1997 tender.
Contract: HSA and Centrelink signed an 18 month
contract covering all eligibility assessment business
including the newly tendered work; the contract runs
to June 2002.
Innovation: completed a pilot project to streamline
service to Centrelink and avoid work duplication by
providing a dedicated HSA team working on-site at
Centrelink’s Noarlunga offi ce in SA; a key benefi t of
the pilot was a halving of assessment and reporting
times, as well as providing a more fl exible and
accessible service to Centrelink customers; the
results are being reviewed with the possibility of
rollout to other states and territories.
Partnership: HSA continued to partner Centrelink
in the training and development of their staff. HSA
doctors conducted seminars and training sessions
to assist Centrelink offi cers to better understand
certain medical components of the assessments.
Impairment Guide: HSA was requested by the
Department of Family and Community Services to
develop a detailed Guide to the Impairment Tables.
This was done by a HSA Brisbane doctor who
also presented training sessions on the Guide to
Centrelink offi cers across the country.
Centrelink assessments
Centrelink South Australia and HSA have worked hard to establish an effective partnership which delivers results for our customers and the taxpayers of Australia. This partner-ship is characterised by mutual respect, openness and understanding of each others business needs � and it works
24 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 25
Immigration services
People who want to migrate to Australia or reside
temporarily for longer than 12 months must undergo
comprehensive health checks to ensure they meet
Australia’s health standards. In particular, applicants
must be free of active tuberculosis (TB).
Health checks, which generally include a medical
examination and chest x-ray to detect TB, are conducted
on migrants either in their country of residence or, for
those already in Australia, onshore in Australia.
Onshore examinations are performed by HSA doctors.
Examinations outside Australia are conducted by panel
doctors and radiologists. Where local clearance at the
overseas Department of Immigration and Multicultural
Affairs (DIMA) offi ce is not possible, these reports and
x-rays are sent to the DIMA Health Assessment Service
(HAS) for evaluation. HSA manages DIMA’s HAS.
Since December 1999, HSA has also been involved
in conducting health screening checks on detainees
at Woomera, Port Hedland and Curtin detention
centres, with around 7,000 assessments undertaken
since January 2000 to date. The emphasis of the health
screening is on public health conditions.
In total, HAS conducted approximately 87,000 migrant
and student examinations during this fi nancial year.
Highlights include:Integrity and Quality: the integrity and quality of
medical assessments is vital to DIMA. Requirements
were formalised between DIMA and HSA on
1st December 2000; conditions of the contract serve
to enhance the integrity, quality and timeliness of
assessments and reporting, and further enhance client
liaison, service and communication. Specifi c measures
introduced during the year included passport checking
to improve integrity, a successful trial of secure
remote IT access to health results by authorised
DIMA staff and improved procedures for clients in
rural and regional Australia.
Detainees: medical assessments and x-rays were
undertaken on around 4,000 detainees during this
fi nancial year, mainly from Afghanistan and Iraq; the
vast majority of assessments were conducted at
remotely located detention centres in WA and SA
against tight deadlines. A number of cases of active
TB and other conditions of public health concern
were identifi ed and treated.
International student examinations: demand for
health assessments on international students rose 20%
on last fi nancial year; HSA continued to adopt a fl exible
approach to cope with demand, including weekend and
evening openings and employing additional medical
and administrative staff at peak times; in all around
38,000 student assessments were undertaken.
Health Assessment Service (HAS): HSA manages
HAS on behalf of DIMA; continued to effectively
manage increasing demand (20% increase over three
years) within a static budget; staff maintained a fi ve
day turnaround in assessing medical fi les; in all more
than 90,000 cases were assessed and reported to
overseas DIMA offi ces.
Chest x-rays for Australian Visa applicants are conducted �on-site� at HSA Parramatta OfÞ ce
Health Services Australia: excellence, innovation and integrity in health 27
A major HSA business imperative is to retain and grow business with existing clients, while striving to expand our client base. We achieve this by placing client requirements at the centre of all business activities, and working to not only meet, but exceed, client expectations.
As the fi rst national health services company in Australia to achieve quality certifi cation to the ISO 9000 series of Standards, HSA has continued its commitment to providing the highest standard of client service, with all 13 offi ces now proudly displaying the quality assured logo.
The HSA Intranet is a valuable quality tool, providing direct access for all employees to our quality documentation, including policies, procedures, guidelines and other company information. During the year, our Intranet technology was upgraded to provide improved speed and access for staff, thus assuring our clients of a consistently high standard of service across the nation.
Development of our Quality Management System will continue to progress in the new fi nancial year. We will explore options to further enhance the utilisation of our Intranet and streamline our internal quality audit process to ensure that our systems remain relevant and effective, as we work towards achieving our triennial re-certifi cation to the recently released ISO 9001:2000 Standard for Quality Management Systems.
WebsiteTo better meet client needs and add value to our
services, we undertook a complete re-design and
upgrade of our website (www.healthoz.com.au).
The new website offers a number of free services:
• workplace and travel health news
• feature articles
• fact sheets
• subscription to HSA’s newsletter, Pulse.
It also contains more detailed information about
HSA, who we are, what we do, our people, to assist
our clients and potential clients better understand
us and our business.
This upgrade is phase one of a three phase website
strategy which, following an evaluation period,
will see phase two introduce greater interactivity,
leading in phase three to comprehensive E-business
capabilities.
National Operations ManagerHSA’s unique position as the only organisation in
Australia offering a truly national one-stop-shop in
health assessments, OH&S and travel health
services, has seen us increase our national client
base, as well as the range of services provided.
An essential requirement of national clients is
consistency in service delivery across Australia.
In order to ensure this, HSA established the position
of National Operations Manager in September 2000.
A central function of the National Operations
Manager is to develop and implement processes and
procedures to ensure national consistency in training,
service delivery and IT networks, and assume overall
responsibility for national project management.
Information TechnologyDuring this fi nancial year we introduced a new,
improved human resources management system,
upgraded our intranet and revamped our website.
In addition, HSA continued working towards the
successful development and implementation of an
improved IT system to manage our appointment
making and health assessment processes. The aim
is to eventually have in place a system tailored
to our unique needs, and one which allows clients to
tap directly into our network to make appointments,
track progress of cases and which facilitates
comprehensive E-business activities.
Extensive effort has gone into designing such a
system, with roll-out anticipated in 2001–2002.
The end result should be enhanced client service
with more effi cient and timely appointment making,
and therefore faster reporting, greater accessibility
and a decrease in administrative workload with the
introduction of on-line payments.
excellence, innovation and integrity in health
Business innovation
HSA offers a national one-stop-shop in health assessments, OH&S and travel health services
Health Services Australia: excellence, innovation and integrity in health 29
Our people
Client FocusedThrough our workforce of more than 450, we strive to provide the highest quality, cost effective services.
This is made possible by having motivated, professional staff focused on our clients and their needs.
We have a diverse workforce – medical specialists, administrators, allied health professionals, marketers,
fi nance and IT experts. Our professional staff have specifi c training and expertise in workplace health and
international travel health, and includes occupational physicians and nurses, psychologists, physiotherapists
and occupational therapists.
TeamworkHSA draws on this diversity, assembling teams with the right skills mix to most appropriately and effectively
meet specifi c project and client needs. This was particularly evident in the establishment of Gulf War Health
Study teams in every HSA offi ce, ensuring high quality, nationally consistent services.
Our team approach means clients are assured of realistic, appropriate outcomes with the close involvement of
our medical staff in both project planning and execution. The professionalism and client focus of our specialists
is mirrored throughout HSA staff, ensuring seamless delivery of services from the moment a client fi rst
engages us to delivery of a fi nal report.
Teamwork is the key to our success
’I enjoy liaising with clients and clinicians to ensure that we provide a nationally consistent, high quality service.‘
Dr Barbara Bell, HSA Lead Medical Practitioner.
30 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 31
Training & developmentTo continue to provide high quality services and
attract the best employees, HSA is committed to
on-going training and professional development.
Throughout the year a range of training programs
were undertaken with medical, management and
administration staff. These included sessions on
leadership, marketing and IT innovation.
Medical and nursing staff also attended various
occupational health conferences to enhance their
clinical knowledge and skills and facilitate
networking and information sharing. Staff involved in
the Gulf War project participated in intensive initial
and ongoing training programs focused on ensuring
that all medical and psychological tests and
examinations were nationally consistent, meeting
the rigorous standards set for the study.
Workplace RelationsNegotiations to develop the Company’s third Certifi ed
Agreement were completed with unions in the latter
half of the fi nancial year. The revised agreement has
been accepted by staff and is awaiting certifi cation
by the Australian Industrial Relations Commission.
Highlights of the new agreement include;
• 5% across the board salary rise in 2001–2002
and a 4% rise in 2002–2003 (this follows a
2% rise in 2000–2001);
• coverage extended to people employed under
contract;
• introduction of a centralised professional
development fund; and
• establishment of a medical ethics committee.
HSA also fi nalised negotiations with the Australian
Medical Association (AMA), to establish a medical
practitioners’ award.
IT InnovationA new human resources management system,
Complete Human Resource Information System
(CHRIS), was introduced to streamline pay processes
and enable the development of more analytical
management reports, leading to better people
management. An upgrade of our intranet resulted
in improved internal communication and enhanced
national consistency in policy and procedures.
Staff SurveyA staff survey was undertaken towards the end of
the fi nancial year. The survey seeks to measure how
HSA is developing as a Company and to identify
ways to further improve performance and process
and make the Company a better place to work.
Diversity Management HSA is committed to equal opportunity in the
workplace. During the year the Company continued
developing its workplace diversity program,
including in the Certifi ed Agreement a commitment
to provide the conditions necessary for developing
skills, obtaining training and balancing work and
family issues.
Our team approach means clients are assured of realistic outcomes with close involvement of our medical staff
State and Territory news
It was a busy, challenging and profi table year for HSA offi ces across Australia. Strong service growth,
particularly evident in health assessments and immigration services, was a direct result of a continuous
nationwide effort to produce quality, innovative services.
This was further enhanced and supported by our highly qualifi ed teams – medical, managerial and
administrative – whose professionalism and client focus ensure seamless service delivery from Wollongong
to Woomera and Melbourne to Perth.
The introduction of two new services had a major impact on business across most offi ces. A national study
into the health of Gulf War veterans led to the establishment of dedicated Gulf War health assessment teams
in every HSA offi ce, while a Defence Recruitment pilot, managed in conjunction with Manpower Australia,
resulted in extremely demanding but satisfying work for offi ces in Victoria and Tasmania.
Minimising infectious diseases in the workplace (inß uenza, Q Fever, hepatitis)
34 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 35
New South WalesAcross the board, NSW offi ces experienced
exceptional growth in both service volume and
revenue. A key factor involved in the NSW success
was the commitment from staff to demonstrate
the organisation’s ability to supply high quality
health services.
This dedication resulted in an increase in new
business, a rebuilding of client relationships, service
innovation and
implementation of
highly successful
promotional
activities. These
advances were
strengthened by the
appointment of a
NSW marketing
manager.
Sydney • Demand for immigration services increased
considerably; we continued to introduce
client focused initiatives to cope with demand,
including establishments of two in-house
call centres to handle enquires and make
appointments.
• Gulf War Health Study was a major project; we
invested heavily in training a number of staff to
manage the project, equipping us to provide a
fl exible and responsive service.
• An extensive fi t-out and refurbishment of offi ce
space was undertaken to facilitate service delivery
and effi ciency and enhance client comfort.
• Completed a process which began last fi nancial
year to consolidate Sydney services from two
sites (Elizabeth St and Surry Hills) into one offi ce
at Surry Hills; as of October 2000, all services had
been successfully transferred.
• Achieved ISO9002 certifi cation.
Parramatta• Expanded the 5 star Corporate Good Health
program, which offers cholesterol, blood sugar,
and Body Mass Index (BMI) assessments, to
include bone density testing to assess risk of
osteoporosis; this testing is conducted using a
portable machine, enabling us to offer our
enhanced service on-site.
• Developed a medical terminology course to
assist our clients read and better understand
medical reports; it has proved highly successful
with Centrelink NSW and may be expanded
throughout Australia.
• Conducted call centre stress audits on behalf of
the Department of Family and Community
Services to help employees better understand
and manage workplace stress; this is the fi rst
time such a program has been run in Australia,
and it is anticipated that it will be rolled out
across the Nation.
• Conducted a highly successful infl uenza
campaign, more than doubling the number of
vaccinations given compared to last year; key
factor in program growth was promotional work
undertaken by the NSW marketing manager.
• To better meet client needs and service business
growth, expanded specialist team with the
addition of three doctors, a sessional psychiatrist
and a full-time psychologist.
• Achieved ISO9002 Quality Assurance
Certifi cation.
Newcastle• Strong growth in Occupational Health and
Safety (OH&S) services, mainly in pre-
employment assessments, consulting services,
vision screening and audiograms.
• Specialist health team strengthened with the
addition of an in-house doctor and psychologist
to help service the increased volume of work.
• Entered a strategic agreement with a major
Australian travel health organisation, Travel
Medicine and Vaccination Centre (TMVC).
TMVC did not have the facilitates to service
Newcastle business.
• Building on efforts from last fi nancial year,
consolidated and strengthened working
relationship with Centrelink.
Wollongong• Undertook a comprehensive travel health
marketing campaign, including attendance at
local travel expos, briefi ngs to local travel agents,
and regular emailing of travel health information
and updates to a network of travel agencies.
• Together with HSA Newcastle, provided travel
health services on behalf of the travel health
organisation, TMVC.
• OH&S growth was based on service and product
innovation, including introduction of ergonomic
information sessions and the development of
pre-employment assessments tailored to specifi c
industries and tasks.
• Following successful marketing efforts of nursing
staff, experienced a doubling of infl uenza
vaccinations compared to last fi nancial year.
• Strengthened specialist team with the addition
of a part-time psychologist; our psychologist
developed a program to help call centre staff
manage diffi cult calls, including unexpected
suicide calls.
• Successfully underwent an independent, external
Quality Assurance audit.
Victoria• Important player in an Australian Defence
Force (ADF) pilot to trial outsourcing of defence
recruiting in Victoria and Tasmania; our role
involves conducting medical assessments on
potential recruits; the project has a major impact
on workload and required the establishment
of an HSA offi ce within the ADF to facilitate
the process.
• Conducted a highly successful infl uenza
vaccination campaign, delivering on-site
vaccinations to more than 8,000 employees; our
accomplishment was linked to fl exibility in
service delivery, including matching the timetable
of shift workers.
• Experienced strong growth in OH&S consulting
services linked to a number of new projects
including, infection control training, health
promotion schemes and work for the Public
Transport System; in order to effectively manage
this growth and plan for the future, employed a
Senior Medical Adviser with sole responsibility
for OH&S.
36 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 37
• Initiated a range of internal changes to improve
client service including: creating two new
positions, Client Services Manager and Customer
Relations Manager; and restructuring Centrelink
service teams.
• To successfully meet the demands of Centrelink
business growth, introduced Saturday clinics,
and undertook a successful recruitment drive
for doctors.
• Following the appointment of the previous
General Manager (GM) to National Operations
Manager, employed a new GM with a strong
background in medical administration, including
senior management positions in the private
hospital system.
South Australia • Strong OH&S growth resulted largely from
winning work with major new clients in the telco,
mining, energy, manufacturing and retail sectors.
• Following concerted marketing efforts,
experienced signifi cant growth in volume of
independent psychological assessments
undertaken for private sector clients; majority of
assessments concerned Fitness for Duty and
compensation claims.
• Developed relationships with local vocational
rehabilitation providers enabling us to offer
clients a complete range of OH&S services from
recruitment to retirement; the relationships
helped us secure business (functional capacity
evaluations and psychological assessments) with
two national organisations.
• Continued to conduct health screenings on
detainees at the Woomera detention centre;
despite much tighter deadlines than in the
previous year, HSA successfully managed to
screen approximately 1,000 detainees within
the required timeframe.
• Completed a highly successful pilot to streamline
service to Centrelink and minimise work
duplication; the pilot involved providing a
dedicated HSA team on-site at Centrelink’s
Noarlunga offi ce and led to a halving of
turnaround times in assessment and reporting;
the results are being reviewed with the
possibility of expanding the program nationally.
Queensland• Collaborated on a national Centrelink tender;
HSA won the tender; the result meant HSA
Queensland retained Brisbane business and won
back work it had lost in a previous tender.
• Played a central role in winning a national tender
to undertake health assessments on F111 crew
involved in fuel tank maintenance; the project,
undertaken on behalf of the Departments of
Defence and Veterans’ Affairs, will roll out
nationally next fi nancial year, with the majority
of assessments expected to be conducted in
Queensland.
• Concentrated on tailoring services to best meet
individual client needs; this involved developing
a number of task specifi c pre-employment
medical assessments including one for a funeral
services organisation, focusing on lifting and
hearing; specifi cally targeted assessments result
in a better job-person fi t and decrease the risk
of compensation claims.
• Introduced a new type of psychological
assessment for executive recruitment; aside
from assessing personality and psychological
traits, the new assessment also looks at literacy
and numeracy skills, offering a new tool in
executive recruitment.
• Provided pre and post deployment medical
assessments to Australian Federal Police serving
in East Timor; HSA also provided vaccinations,
anti-malarial treatments and health advice.
• Following a request from the Australian
Customs Service for advice to help them
better manage shift workers, commissioned a
project on shift work; research was undertaken
by a HSA Occupational Physician, with the
results being used to develop a shift work
management protocol.
Western Australia• Meeting increasing demand, continued to
provide a rapid response service to undertake
health assessments on detainees in Port
Hedland and Curtin detention centres; this
service requires medical personnel to travel
thousands of miles and work in extremely
demanding conditions against tight deadlines.
• Expanded services to DIMA to include:
establishment of a radiology service on-site
at Derby, resulting in a signifi cant improvement
in turn around time in delivery of x-ray and
radiology services to DIMA; vaccinations
and health advice to DIMA staff working at
detention centres; and, provision of
specialist medical counsel to handle acute
public health issues.
• Gulf War Heath Study was a high priority;
invested heavily in training a large number of
staff to conduct assessments, enabling us to
provide a more fl exible and responsive service,
including weekend openings.
• In conjunction with Melbourne offi ce, WA
in-house trainee occupational physician
developed an acoustic shock (audioshock)
service, combining information and training
seminars to help employers understand and
manage the condition.
• Developed a basic travellers’ fi rst aid kit which
can be tailored to specifi c needs by the addition
of items based on destination and individual
traveller health; travel kits are supplied by WA
to other HSA offi ces.
38 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 39
Tasmania• Along with Victoria, involved in conducting
medical assessments as part of the ADF pilot to
trial outsourcing of defence recruiting; the project
required the employment of additional doctors,
nurses and administration staff.
• In September, the Hobart offi ce moved into
larger premises in the CBD; the premises are
housed in a building owned by HSA, which was
refurbished to meet work place needs; the
new offi ce provides double the number of
examination rooms.
• As a result of concerted marketing efforts, ran
a highly successfully infl uenza vaccination
program topping last year’s fi gures; marketing
activities saw us maintain previous clients and
open new markets.
• Employed an in-house Occupational Physician to
work between the Hobart and Launceston offi ces,
initially servicing mostly military compensation
and insurance clients.
Australian Capital Territory• Strong OH&S growth, particularly in pre-
employment assessments, vision screening,
audiograms, and psychological assessments,
resulted from expanding business with existing
clients, and winning new contracts.
• In order to service the demand of the Gulf War
Health Study, employed a psychologist and
additional nurse to form part of a dedicated
Gulf War team which also includes doctors and
administrative personnel.
• Introduced a range of initiatives to add value to
services and ensure we continue to provide a
superior service: took over administrative tasks
usually performed by our clients; enhanced
communication via increased face-to-face liaison
at executive level; and established agreed
guidelines to benchmark our services.
• Purchased an ultrasound bone density machine
to measure bone strength and assess risk of
osteoporosis; the machine is portable enabling
service delivery to both the ACT and surrounding
regional areas; the service represents a
broadening of OH&S capabilities and will be
marketed in the new fi nancial year.
• To aid in effi ciency and effective service delivery,
established two new executive positions,
Director of Medical Services and Nurse Manager;
the Medical Director has a key role in client
liaison; the Nurse Manager‘s role has a
marketing focus; both are also involved in direct
service delivery.
• To enhance understanding of our clients’
business and provide the most appropriate
counsel, established a program in which clients
were invited to address HSA medical staff on
what tasks/activities their employees undertake
on a daily basis.
Northern Territory• Exceptional growth in OH&S services due mainly
to work undertaken for Telstra’s Best of Health
Program and increased demand for audiograms
and psychological services.
• Conducted post-deployment medical
assessments on Australian Federal Police offi cers
returning from service in East Timor; the
assessments were conducted as soon as possible
following arrival in Australia, usually in groups of
50–100 over a two day period.
• Invited by Telstra to manage the Family Fun Day
event, held annually as part of Telstra’s Best of
Health Program; HSA coordinated all activities
for the Darwin event; HSA held a stand for the
day offering blood pressure readings and weight
analysis.
• Following a request from DIMA last fi nancial
year, continued to conduct medical assessments
on illegal immigrants to assess their fi tness for
onward travel to detention centres in SA and
WA; these exercises require fl exibility and their
success lies in the high degree of co-operation
between government departments, Australian
Federal Police and HSA.
• Employed an in-house psychologist and second
medical adviser to better service client needs.
Health Services Australia: excellence, innovation and integrity in health 41
Gulf War Health StudyIn the decade since the Gulf War a relatively high proportion of Australia’s 1,872 Navy, Army and Air Force
personnel sent to the Gulf have lodged sickness claims, compared with veterans from other confl icts. A similar
phenomenon has occurred amongst British, American and Canadian veterans.
In response, the Departments of Veterans’ Affairs and Defence commissioned the most comprehensive Gulf
War health study ever. While many studies have been conducted overseas, this is the fi rst study involving
medical, psychological and exposure assessments of such depth and complexity.
HSA, in partnership with Monash University, was successful in tendering to conduct the Study, thereby opening
up a new, exciting service area for the Company.
The study, designed by Monash University, investigates whether Australia’s Gulf War veterans have a higher
than expected rate of adverse health effects and, if so, whether these can be associated with environmental,
chemical or combat related exposures during the Gulf War.
HSA is responsible for conducting medical and psychological assessments on the Gulf War veterans and a
control group of Defence Force personnel employed at the time of the war but who did not go to the Gulf.
The results are forwarded to Monash University for analysis.
Our unparalleled experience in health assessments, combined with our independence and extensive national
network puts us in a unique position to meet the critical demands of such studies for in-depth medical
assessment embodying internationally certifi ed quality procedures which ensure national consistency. This has
been enhanced with the establishment and training of dedicated Gulf War study teams in every HSA offi ce.
Our commitment, both in terms of time and personnel, has been enormous but extremely rewarding. To date,
75% of Australia’s Gulf War veterans have either been assessed or agreed to participate. Two thousand of the
targeted 3,000 plus assessments had been completed at the end of the fi nancial year.
The testing phase of the Study is due to fi nish in November 2001 with analysis and a fi nal report to the
Departments of Veterans’ Affairs and Defence to follow.
’I hope that my participation in the Gulf War Veterans’ Health Study will help in developing programs to support our Gulf War Vets.‘Mr Alan Adams
Health Services Australia: excellence, innovation and integrity in health 43
Dr Michael Pincus, MBBS20 October 1951 – 30 June 2001
The HSA Board, Management and staff would like to pay a special tribute to Dr Michael Pincus.
Michael was a key contributor to HSA’s innovations in service delivery, growth and change management, and
a driving force in the evolution of HSA from a branch of the Federal Department of Health to a highly successful
government business enterprise.
He was held in the highest esteem by all who knew and worked with him. He was a person of great generosity
of spirit, unstinting in sharing his information and knowledge. He was a man of integrity, who loved the
intellectual challenges of his work.
Michael began his distinguished 20-year career in public health in Canberra, including working for Australian
Government Health Services and HSA. He rose to become HSA National Business Manager and General
Manager of South Australian operations, where he earned a reputation as a dynamic leader, respected by
colleagues and clients alike.
We miss his wonderful sense of humour, his laughter and hugely infectious smile that lit up his face. We miss
his imagination, his ideas, his experience. We share his family’s loss and celebrate our memories of a man
who made a difference to all who knew him.
44 Health Services Australia: excellence, innovation and integrity in health
Health Services Australia: excellence, innovation and integrity in health 45
LegislationHealth Services Australia was incorporated
on 17 June 1997 under the Corporations
Act 2001. The Company is also subject to the
Commonwealth Authorities and Companies
Act 1997. Functions, assets and liabilities of the
Australian Government Health Service were
transferred to the Company on 1 July 1997
under the Hearing Services and AGHS Reform
Act 1997.
Health Services Australia is a public company
limited by shares, incorporated in Australia.
The registered offi ce is located at Level 1,
15 Bowes Street, Woden, ACT, 2606.
Responsible MinisterThe Honourable John Fahey, Minister for
Finance and Administration and Senator
The Honourable Grant Tambling, Parliamentary
Secretary to the Minister for Health and
Aged Care have responsibility for Health
Services Australia.
Directors’ InterestsNo director holds shares or options in the Group.
Directors’ MeetingsThere were 12 Board and 4 Audit Committee
meetings held between 1 July 2000 and
30 June 2001. The following table shows the
number of meetings the Directors attended
during the fi nancial year:
Mr Rae Taylor AO BEc (Hons) Sydney University Chairperson and Independent Non-Executive DirectorAge 66
A Director of Maersk Australia Pty Ltd
and a Deputy Chairperson of the
National Road Transport Commission
(NRTC). Formerly Managing Director of
Australia Post. Mr Taylor has also
served as Secretary of a number of
Commonwealth government
departments. Mr Taylor is the
Chairperson of the Audit Committee
and the Board Nominations and
Remuneration Committee. Appointed
26 June 1997. Current term expires
21 September 2003.
Mr Warwick Wilkinson AM RFD ED Hon Mpharm (Syd), FPS Independent Non-Executive Director Age 70
Mr Wilkinson was previously Director
External Affairs for Merck Sharp &
Dohme (Australia) Pty Ltd. Formerly the
Chairman of the Council of the National
Competition Policy Review of Pharmacy.
Recently appointed as Chairman of the
Review of the Impact of the Trade
Practices Act on Doctors in Rural and
Regional Australia. Currently a part time
ACCC Associate Commissioner.
Appointed 15 December 2000. Current
term expires 12 September 2003.
Dr Sue Morey AM MB BS (Syd), MPH (Harvard), FRACP, FAFPHM, FRACMA, FAICD Independent Non-Executive Director Age 58
Director of consultants Morey Australia
Pty Ltd. Formerly Chief Health Offi cer
and Executive Director, Public Health,
NSW Department of Health. Appointed
26 June 1997. Current term expires
21 March 2004.
Mr Richard Basham FCA, SIA(Aff) Independent Non-Executive Director Age 63
Formerly Managing Partner of the
Perth offi ce of Grant Thornton, an
international fi rm of chartered
accountants. Mr Basham has extensive
fi nancial and business consulting
experience in the private sector.
Mr Basham is a member of the Audit
Committee and the Board Nominations
and Remuneration Committee.
Appointed 26 June 1997. Current
term expires 21 September 2004.
Ms Vanessa FanningBA (Melb), BEc (ANU), FAICD, FAIM Managing DirectorAge 51
Managing Director of Health Services
Australia since 1998. Chairperson of
Work Solutions Group Pty Ltd from
1 July 1999. Group Manager Public
Policy at TNT 1995–97. Previously
12 years experience at senior
management level in the federal
Department of Transport and
Communications. Appointed
18 December 1998. Current term
expires 9 February 2003.
Ms Rebecca James BEc, GDPPM Independent Non-Executive Director Age 47
Ms James has broad experience as a
health consultant, with formal
qualifi cations in economics and public
policy. Ms James brings a strong mix
of skills and experience to the Board,
having worked in the public and
private sectors. Ms James operates a
successful consulting business in public
health policy and research. Appointed
25 November 1999. Current term
expires 24 November 2002.
Directors� ReportHEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
The Board of Directors of Health Services Australia Limited (Health Services Australia) has pleasure in
submitting its Group report in respect of the fi nancial year ended 30 June 2001.
Board of DirectorsThe names and details of the directors in offi ce during or since the end of the fi nancial year are below.
Unless indicated otherwise, all directors held their position as a director throughout the entire fi nancial
year and up to the date of this report.
44 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 45
46 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 47
Details of the Board Committees are as follows:
1. Audit CommitteeResponsibility –
• oversighting the Internal Audit function;
• monitoring the implementation of internal and
external audit recommendations;
• reviewing management responses to external
audit reports;
• reviewing the fi nal draft of the fi nancial
statements and the audit report prior to the
meeting of the Board to approve the fi nancial
statements; and
• oversighting risk and fraud management plans
and practices.
2. Board Nominations and Remuneration Committee
Responsibility –
• provide Shareholder Ministers with a list of
suitable candidates for Board membership.
The membership of the Committee is the same as
that of the Audit Committee. The committee only
meets on an as required basis.
The Remuneration Tribunal determines the
remuneration for directors of the Company.
Principal ActivitiesThe principal activities of Health Services Australia
during the course of the fi nancial year were the
provision of health assessment and advice services.
No signifi cant change in the nature of these activities
occurred during the year.
Operating ResultsThe profi t of the Group, after providing for income
tax, amounted to $5.8 million.
Dividends Paid or RecommendedThe Company paid the 1999–00 fi nal dividend of
$0.84 million in November 2000. The interim dividend
for 2000–01 of $1.5 million was paid in April 2001
and the Board has recommended a fi nal dividend
of $2.2 million. Total dividends paid/recommended
relating to the 2000–01 fi nancial year total
$3.7 million and represent 63% per cent of the after
income tax net profi t of the Company for that year.
In addition, the Company made payments
totalling $1.2 million (2000: $1.1 million) to the
Commonwealth under the Tax Equivalent Regime in
lieu of State taxes.
Review of OperationsA review of Health Services Australia’s operations is
contained in the Message from the Board.
StaffAs at 30 June 2001, the Company employed a total
of 454 staff.
Signifi cant Changes in State of AffairsSignifi cant changes in the state of affairs of the
Company that occurred during the fi nancial year and
reported in the fi nancial statements were:
• the provision of Occupational Health services to
approximately 2000 Gulf War veterans Australia
wide for the Department of Veteran Affairs and
participation in the Department of Defence
Recruitment Pilot in Victoria and Tasmania;
• a net increase in shareholder value from
$15.5 million to $17.7 million; and
• commencement of replacement strategy for a
core information technology system.
Events Subsequent to Balance DateOn 31 August 2001, the Company agreed to
acquire a 100% interest in TMVC The Travel Doctor
Group for consideration of $1.38 million. The event
has no effect on the fi nancial statements for the
year ended 30 June 2001.
No other matters or circumstances, except those
stated above, have arisen since the end of the
fi nancial year which signifi cantly affected or may
signifi cantly affect the operations of the economic
entity, the results of those operations, or the state
of affairs of the economic entity in subsequent
fi nancial years.
Likely Developments and Future ResultsThe likely developments in the operation of the
Group and the expected results of those operations
in fi nancial years subsequent to the year ended
30 June 2001 are as follows:
(i) to continue our focus on providing quality
customer service;
(ii) continue on our program of reform designed
to position the Group as a ‘best practice’
provider; and
(iii) to expand and diversify our client and service
base.
Environmental IssuesThe Company’s operations are not regulated by
any signifi cant environmental regulations under a
law of the Commonwealth or of a State or Territory.
OptionsNo options over issued shares or interests in
the Group were granted during or since the end
of the fi nancial year and there were no options
outstanding at the date of this report.
Directors’ Remuneration and Benefi tsRemuneration and allowances for directors
of the Company are determined by the
Commonwealth Remuneration Tribunal, an
independent statutory body.
The remuneration for non-executive directors
is $17,800 a year. The Chairperson receives
$33,800. The Managing Director’s package is set
in consultation with the Remuneration Tribunal
under its advisory jurisdiction. Travel allowances,
also set by the Remuneration Tribunal, are
payable to directors.
Directors receive no benefi ts other than those
stated above and detailed in Notes 25 and 26 of
the fi nancial statements.
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
Director Directors’ Meeting Audit Committee
Number Number eligible to Number eligible to Number attend attended attend attended
Rae Taylor 12 11 4 4
Richard Basham 12 12 4 4
Sue Morey 12 12 – –
Vanessa Fanning 12 12 – –
Rebecca James 12 10 – –
Warwick Wilkinson 6 6 – –
48 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 49
During the fi nancial year the Company has paid a
premium of $17,248 for the insurance of Directors
and Offi cers of the Company. This insurance
coverage insures each full-time executive and
secretary of the Company, against liabilities and
expenses arising as a result of work performed in
their respective capacities to the extent permitted by
law. There have been no claims made pursuant to
the above arrangements.
Signed in accordance with a resolution of the
directors.
Corporate GovernanceThe Company operates within the Governance
Arrangements for Commonwealth Government
Business Enterprises. The Board has also established
an Internal Audit function that provides assurance to
the Audit Committee on a range of operational and
fi nancial activities.
Directors and Auditors Indemnifi cationThe Company has not, during or since the fi nancial
year, in respect of any person who is or has been an
auditor of the Company:
• indemnifi ed or made any relevant agreement for
indemnifying against a liability incurred as an
auditor, including costs and expenses in
successfully defending legal proceedings; or
• paid or agreed to pay a premium in respect of a
contract insuring against a liability incurred as an
auditor for the costs or expenses to defend legal
proceedings.
Mr Rae Taylor AO Ms Vanessa FanningChairman Managing Director
11 October 2001
Directors� DeclarationThe directors declare that:
(a) the fi nancial statements and associated notes:
(i) comply with the accounting standards and Urgent Issues Group Consensus Views; and
(ii) give a true and fair view of the fi nancial position of the Company and consolidated entity as at
30 June 2001 and of their performance for the year ended on that date;
(b) in the directors’ opinion:
(i) there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable and the Company and consolidated entity will together be
able to meet any obligations or liabilities to which they are or may become subject to by virtue
of guarantees provided.
(ii) the fi nancial statements and notes are in accordance with the Corporations Act 2001, including
sections 296 and 297.
Made in accordance with a resolution of the directors.
Mr Rae Taylor AO Ms Vanessa FanningChairman Managing Director
Canberra
11 October 2001
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
50 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 51
52 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 53
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
STATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Notes Consolidated Company Consolidated Company $ $ $ $
REVENUE FROM ORDINARY ACTIVITIES
Sale of health services 52,855,063 48,530,887 44,632,135 40,957,207 Miscellaneous revenue Interest from non-related parties 851,926 851,926 703,319 692,625 Interest from partly owned controlled entity 0 43,245 0 36,569 Other revenue 245,521 251,647 192,618 192,618
Total Revenue from Ordinary Activities 53,952,510 49,677,705 45,528,072 41,879,019
EXPENSES FROM ORDINARY ACTIVITIES
Employee related expenses 28,981,317 25,813,960 25,206,226 22,589,069 Supplier related expenses 12,266,701 11,338,849 11,798,946 10,822,888 Depreciation/Amortisation 2 1,827,209 1,607,669 1,752,252 1,580,812 Rental expense on operating leases 1,894,618 1,872,202 2,293,442 2,165,988 Items of signifi cant interest 3 0 0 1,157,040 1,154,040
Total Expenses from Ordinary Activities 44,969,845 40,632,680 42,207,906 38,312,797
BORROWING COSTS 26,209 0 1,936 0
Profi t from ordinary activities before income tax expense 2 8,956,456 9,045,025 3,318,230 3,566,222
Income tax expense attributable to ordinary activities 4 (3,179,158) (3,179,158) (1,321,145) (1,321,145)
Net profi t 5,777,298 5,865,867 1,997,085 2,245,077
Less: Net profi t/(loss) attributable to outside equity interests 18 (23,910) 0 (103,621) 0
Net profi t attributable to members of the parent entity 5,801,208 5,865,867 2,100,706 2,245,077
Total changes in equity other than those resulting from transactions with owners as owners 5,801,208 5,865,867 2,100,706 2,245,077
The accompanying notes form part of these fi nancial statements
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2001
2000–2001 1999–2000 Notes Consolidated Company Consolidated Company $ $ $ $
CURRENT ASSETS
Cash Assets 936,601 936,938 594,821 652,281 Receivables 7 5,293,851 4,259,230 5,601,172 4,886,425 Other Financial Assets 8 2,990,588 2,990,588 4,502,754 4,502,754 Other 9 365,056 358,095 248,466 246,390
Total Current Assets 9,586,096 8,544,851 10,947,213 10,287,850
NON-CURRENT ASSETS
Receivables 7 0 585,000 0 585,000 Other Financial Assets 8 13,015,545 13,530,545 8,002,017 8,517,017 Property, Plant and Equipment 10 7,436,588 6,982,625 6,401,947 6,040,973 Intangibles 11 325,999 0 366,749 0 Deferred Tax Assets 4 382,268 382,268 582,793 582,793 Other 9 0 0 10,825 10,825 Total Non-Current Assets 21,160,400 21,480,438 15,364,331 15,736,608 Total Assets 30,746,496 30,025,289 26,311,544 26,024,458
CURRENT LIABILITIES
Payables 12 4,149,047 3,688,349 3,697,529 3,502,027 Interest Bearing Liabilities 13 210,519 0 56,436 0 Provisions 14 3,392,699 3,274,790 2,427,162 2,354,881 Tax Liabilities 4 1,892,870 1,892,870 1,341,173 1,341,173 Other 15 91,248 91,248 84,978 84,978 Total Current Liabilities 9,736,383 8,947,257 7,607,278 7,283,059
NON-CURRENT LIABILITIES
Interest Bearing Liabilities 13 133,890 0 79,554 0 Provisions 14 2,790,441 2,763,191 2,659,623 2,635,820 Deferred Tax Liabilities 4 101,813 101,813 43,288 43,288 Other 15 534,282 534,282 549,412 549,412 Total Non-Current Liabilities 3,560,426 3,399,286 3,331,877 3,228,520 Total Liabilities 13,296,809 12,346,543 10,939,155 10,511,579 NET ASSETS 17,449,687 17,678,746 15,372,389 15,512,879
EQUITY
Contributed Equity 16 13,266,522 13,266,522 13,266,522 13,266,522 Retained Profi ts 17 4,203,194 4,412,224 2,101,986 2,246,357 Parent entity interest 17,469,716 17,678,746 15,368,508 15,512,879 Outside equity interests in controlled entities 18 (20,029) 0 3,881 0 Total Equity 17,449,687 17,678,746 15,372,389 15,512,879 The accompanying notes form part of these fi nancial statements
54 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 55
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Notes Consolidated Company Consolidated Company $ $ $ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 57,486,677 53,310,288 47,865,396 44,474,238 Payments to suppliers and employees (44,048,374) (40,265,677) (38,552,533) (34,969,882) Payments of GST (2,823,441) (2,611,941) 0 0 Interest received 916,279 936,176 660,870 667,837 Interest paid (49,557) 0 (20,844) 0 Payments of income tax (2,368,114) (2,368,410) (766,279) (749,625)
Net cash provided by (used in) operating activities 24(b) 9,113,470 9,000,436 9,186,610 9,422,568
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 44,466 23,466 2,110 2,110 Investments in controlled entities 0 0 (400,000) (515,000) Loans to controlled entities 0 0 0 (585,000) Loans to directors 0 0 53,759 0 Purchase of property, plant and equipment (3,164,510) (2,879,180) (2,647,096) (2,403,825) Net redemption/(purchase) of investments (3,520,065) (3,520,065) (4,175,311) (4,175,311)
Net cash provided by (used in) investing activities (6,640,109) (6,375,779) (7,166,538) (7,677,026)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid by parent entity (2,340,000) (2,340,000) (1,810,000) (1,810,000) Loans 208,419 0 (113,562) 0
Net cash provided by (used in) fi nancing activities (2,131,581) (2,340,000) (1,923,562) (1,810,000)
NET INCREASE/(DECREASE) IN CASH HELD 341,780 284,657 96,510 (64,458)
Cash at the beginning of the fi nancial year 594,821 652,281 498,311 716,739 Cash at the end of the fi nancial year 24(a) 936,601 936,938 594,821 652,281
The accompanying notes form part of these fi nancial statements
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
Note Contents
1 Statement of Signifi cant Accounting Policies
2 Operating Profi t
3 Items of Signifi cant Interest
4 Taxation
5 Segment Reporting
6 Dividends
7 Receivables
8 Other Financial Assets
9 Other Assets
10 Property, Plant and Equipment
11 Intangibles
12 Payables
13 Interest Bearing Liabilities
14 Provisions
15 Other Liabilities
16 Contributed Equity
17 Retained Profi ts and Dividends
18 Outside Equity Interests
19 Commitments
20 Contingencies
21 Financial Instruments Disclosure
22 Financing Arrangements
23 Particulars in relation to the Controlled Entity
24 Notes to the Statement of Cash Flows
25 Directors’ Remuneration
26 Related Parties
27 Economic Dependence
28 Auditors’ Remuneration
29 Earnings Per Share
30 Events Subsequent to Balance Date
56 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 57
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The signifi cant policies which have been adopted in the preparation of the fi nancial statements are:
a) Basis of Accounting
The fi nancial statements have been prepared as a general purpose fi nancial report which complies with Australian Accounting Standards, Urgent Issues Group Consensus Views and other mandatory professional reporting requirements, and the Corporations Act 2001.
The fi nancial statements have been prepared on an accrual basis. The fi nancial statements are in accordance with the historical cost convention, and except where stated, do not take into account changing money values. Cost is based on the fair values of the consideration given in exchange for assets.
The accounting policies have been consistently applied by each entity in the consolidated entity and are consistent with those of the previous year.
b) Comparatives
Where necessary, comparative information has been reclassifi ed to achieve consistency in disclosure with current fi nancial year amounts and other disclosures.
c) Principles of Consolidation
The consolidated fi nancial statements include the fi nancial statements of the Company, being the parent entity, and its controlled entity (refer Note 23), referred to collectively as ‘the consolidated entity’. Control exists where the Company has the capacity to dominate the decision-making in relation to the fi nancial and operating policies of another entity so that the other entity operates with the Company to achieve the objectives of the Company.
The balances, and effects on transactions, between controlled entities included in the consolidated fi nancial statements have been eliminated.
Outside equity interests in the equity and results of the entity controlled by the Company are shown as a separate item in the consolidated fi nancial statements.
d) Intangibles – Note 11
Goodwill, representing the excess of the purchase consideration plus incidental costs over the fair value of the identifi able net assets acquired on the acquisition of a controlled entity, is amortised over the period of time during which benefi ts are expected to arise.
Goodwill is amortised on a straight line basis over 10 years.
The unamortised balance of goodwill is reviewed at each reporting date. Where the balance exceeds the value of expected future benefi ts, the difference is charged to the Statement of Financial Performance.
e) Revenue Recognition
Sales of Health Services
Sales of health services comprises revenue earned from the provision of medical assessments for residency applications, government and private enterprise employment and occupational health and safety purposes, and the delivery of advice and vaccinations to Australians travelling overseas. Revenue for reports and services is recognised in the period in which the service is provided, having regard to the proportion of completion of the service at the reporting date.
Interest Revenue
Interest income is recognised as it accrues.
Asset Sales
The profi t or loss on disposal of assets is brought to account at the date an unconditional contract of sale is signed. A net loss on disposal of assets is shown as an expense, while a net profi t on disposal is shown as revenue.
Revenue Received in Advance
Revenue for some services is received in advance of the service being provided. The consolidated entity recognises as a liability any amounts received for which it has not provided the service at reporting date.
f) Borrowing Costs
Borrowing costs include interest, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with arrangement of borrowings and lease fi nance charges. Borrowing costs are expensed as incurred.
g) Income Tax – Note 4
The consolidated entity adopts the income statement liability method of tax effect accounting.
Income tax expense is based on the operating profi t adjusted for permanent differences between taxable and accounting income.
The tax effect of timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is carried forward in the Statement of Financial Position as a future incometax benefi t or a provision for deferred income tax. Both balances have been adjusted for the change in the corporate tax rate, from 34% to 30% as at 1 July 2001. Future income tax benefi ts are not brought to account unless realisation of the asset is assured beyond reasonable doubt. The tax effect of capital losses is not recorded unless realisation is virtually certain.
h) Non-Current Assets
The carrying amounts of non-current assets, are reviewed to determine whether they are in excess of their recoverable amount at balance date. If the carrying amount of a non-current asset exceeds its recoverable amount, the asset is written down to the lower amount.
In assessing recoverable amounts of non-current assets the relevant cash fl ows have not been discounted to their present value, except where specifi cally stated.
The consolidated entity does not have a policy of regular revaluation of non-current assets.
i) Receivables – Note 7
Trade debtors are carried at amounts due. The collectibility of debts is assessed at balance date and a general provision made for debts that are doubtful.
j) Other Financial Assets – Note 8
The investment in the controlled entity is carried in the Company’s fi nancial statements at the lower of cost and recoverable amount. Dividends and distributions are brought to account in the Statement of Financial Performance when they are declared by the controlled entity.
The Company invests cash excess to its immediate requirements in a combination of bank bills and fl oating rate notes. These investments are not actively traded and are recorded at the lower of cost and net realisable value. Interest revenue on those investments is brought to account on an accrual basis. Premiums and discounts on acquisition are amortised over the period the Company intends to retain the investment.
k) Property, Plant and Equipment – Note 10
Property, plant and equipment are brought to account at cost, less, where applicable, any accumulated depreciation or amortisation. All property, plant and equipment is recorded at the lesser of written-down value or recoverable value as required by AASB 1010 “Recoverable Amount of Non-Current Assets”. In determining the recoverable value, cash fl ows were not discounted.
In accordance with AASB 1021, the useful lives of property, plant and equipment are reviewed annually, and adjusted where necessary.
Except for leasehold improvements, the Company recognises all acquisitions with an expected life exceeding twelve months and a cost value exceeding $300. Acquisitions with a cost value less than $300 arenot capitalised, but are expensed in the year of acquisition. All expenditure on leasehold improvements has been capitalised where the expected useful life exceedstwelve months.
Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefi ts, in excess of the originally assessed performance of the asset will fl ow to the consolidated entity in future years. Costs incurred on property, plant and equipment which do not meet the criteria for capitalisation are expensed as incurred.
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
58 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 59
n) Employee Entitlements – Note 14
Wages, salaries and annual leave
The provisions for employee entitlements to wages, salaries and annual leave represents the amount which the consolidated entity has a present obligation to pay resulting from employees’ services provided up to balance date. The provisions have been calculated at undiscounted amounts based on current wages and salary rates and include related on-costs.
The portion of the provision for annual leave that is current has been determined using past experience of the actual cost of annual leave taken each year.
Long service leave
The provision for long service leave refl ects the present value of the estimated future cash fl ows to be made in respect of all employees, resulting from employees’ services provided up to balance date. Related on-costs have also been included in the provision. The portion of the provision for long service leave that is current has been determined using past experience of the value of long service leave taken and paid out each year.
Provisions for leave entitlements which are not expected to be settled within twelve months are discounted using rates attaching to notional government securities at balance date, which most closely match the terms of maturity of the related liabilities. In determining the provision for employee entitlements, consideration has been given to future increases in wage and salary rates, and the consolidated entity’s experience with staff departures.
Sick leave
No provision has been made for sick leave. All sick leave is non-vesting and the average sick leave taken by staff is estimated to be less than the sick leave annually accrued.
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
NOTE 2 – OPERATING PROFIT
Profi t from ordinary activities after charging/(crediting) the following:
Net (gain)/loss on disposal of property, plant and equipment 20,005 27,454 39,582 35,046 Gross proceeds on disposal of property, plant and equipment (42,966) (23,466) (2,110) (2,110)Diminution in value of non-current other fi nancial assets 18,704 18,704 61,117 61,117 Net expense from movements in provisions: Employee entitlements 107,418 58,343 210,057 187,553 Restoration 83,770 83,770 (72,355) (72,355) Surplus leased premises (477,029) (477,029) 477,029 477,029 Net expense including movements in provision for bad and doubtful debts 10,062 10,062 157,273 157,273 Amortisation of: Leasehold improvements 500,110 500,110 433,088 433,088 Software 472,202 472,202 569,801 569,801 Goodwill 40,750 0 40,750 0 Depreciation of: Property, plant, and equipment; and motor vehicles 793,505 614,715 708,613 577,923 Buildings 20,642 20,642 0 0
NOTE 3 – ITEMS OF SIGNIFICANT INTEREST
Restructuring Provision 0 0 394,000 394,000 Income tax effect 0 0 0 0 0 0 394,000 394,000
Millennium issue rectifi cation costs 0 0 117,440 117,440 Income tax effect 0 0 (42,278) (42,278) 0 0 75,162 75,162
GST Implementation costs 0 0 64,659 64,659 Income tax effect 0 0 0 0 0 0 64,659 64,659
Surplus leased premises 0 0 577,941 577,941 Income tax effect 0 0 0 0 0 0 577,941 577,941
Write-off of formation costs 0 0 3,000 0 Income tax effect 0 0 0 0 0 0 3,000 0
Aggregate items of signifi cant interest before income tax 0 0 1,157,040 1,154,040 Aggregate income tax effect 0 0 (42,278) (42,278) 0 0 1,114,762 1,111,762
(2000: The Company restructured its NSW offi ces, resulting in redundancies and surplus leased offi ce space.)
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
The straight-line method of depreciation has been adopted for all property, plant and equipment assets, excluding freehold land, at rates based on their assessed useful life to the Company. Assets are depreciated or amortised from the date the asset is held ready for use. Leasehold improvements are amortised over the shorter of either the unexpired period of the lease or the estimated useful life of the improvement.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset Depreciation/Amortisation Rate
Buildings 5.0%Motor Vehicles 22.5%Plant & Equipment 3 to 40%Software 40.0%Leasehold Amortised over the life of eachImprovements lease
Assets are depreciated or amortised from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and held ready for use.
l) Leases
Operating leases are not capitalised and rental payments are expensed in the year in which they are incurred.
The total benefi t of operating lease incentives is recognised as a liability at the commencement of each lease and subsequently amortised over the life of the respective lease.
Provision is made for surplus leased premises when it is determined that no substantive future benefi t will be obtained by the consolidated entity from the premises.
The consolidated entity does not hold any leases which would be categorised as fi nance leases.
m) Accounts Payable
Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the consolidated entity. Trade accounts are normally settled within 30 days.
60 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 61
NOTE 4 – TAXATION
a) Income tax expense
The difference between income tax expense provided in the fi nancial statements and the prima facie income tax expense is reconciled as follows:
Profit from Ordinary Activities 8,956,456 9,045,025 3,318,230 3,566,222
Prima facie tax thereon at 34% (2000: 36%) 3,045,195 3,075,309 1,194,563 1,283,840 Add tax effect of permanent differences: Other non-allowable items 66,456 66,456 5,478 5,478 Under provision for income tax in prior year 0 0 91 91 Amortisation of Goodwill 13,855 0 14,670 0 Tax benefi t on losses of controlled entity 16,258 0 74,607 0 Restatement of deferred tax balances due to change in company tax rate 37,394 37,394 31,736 31,736 Income tax expense attributable to profi t from ordinary activities 3,179,158 3,179,158 1,321,145 1,321,145
Income tax expense attributable to operating profi t is made up of: Current income tax provision 2,920,107 2,920,107 1,836,359 1,836,359 Deferred income tax provision 58,525 58,525 (250,028) (250,028) Future income tax benefi t 200,526 200,526 (265,277) (265,277) Under provision for income tax in prior year 0 0 91 91 3,179,158 3,179,158 1,321,145 1,321,145
b) Tax Liabilities (Provision for current income tax)
Movements during the year Balance at beginning of year 1,341,173 1,341,173 254,349 254,349 Income tax paid (2,368,410) (2,368,410) (749,625) (749,625) Under provision for income tax in prior year 0 0 91 91 Income tax to be paid on current year’s operating profi t 2,920,107 2,920,107 1,836,358 1,836,358 Balance at end of year 1,892,870 1,892,870 1,341,173 1,341,173
c) Deferred Tax Liabilities (Provision for deferred income tax)
Provision for deferred income tax comprises the estimated expense at current income tax rates on the following items: Prepayments and Accrued Income 101,813 101,813 43,288 43,288 Balance at end of year 101,813 101,813 43,288 43,288
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
d) Deferred Tax Assets (Future income tax benefi t)
Future income tax benefi t comprises the estimated future benefi t at current income tax rates on the following items: Provisions and accrued employee entitlements not currently deductible 27,583 27,583 239,039 239,039 Differences in depreciation and amortisation of property, plant and equipment for accounting and income tax purposes 219,636 219,636 148,528 148,528 Sundry items 135,049 135,049 195,226 195,226 Balance at end of year 382,268 382,268 582,793 582,793
NOTE 5 – SEGMENT REPORTING
The consolidated entity operates in Australia and provides medical assessment and health advisory services to individuals and organisations, mainly Commonwealth and State Government departments and agencies.
NOTE 6 – DIVIDENDS
Interim dividends paid 1,500,000 1,500,000 660,000 660,000 Final dividends proposed 2,200,000 2,200,000 840,000 840,000 Dividends paid or proposed 3,700,000 3,700,000 1,500,000 1,500,000
NOTE 7 – RECEIVABLES
CurrentTrade Receivables 5,245,846 3,921,751 5,459,673 4,841,137 Services-in-progress 126,515 415,989 273,871 177,660 less: Provision for doubtful debts (78,509) (78,509) (132,372) (132,372) Total Current Receivables 5,293,851 4,259,230 5,601,172 4,886,425
Non-Current
Loan to Controlled Entities 0 585,000 0 585,000
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
62 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 63
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
NOTE 8 – OTHER FINANCIAL ASSETS
CurrentShort Term Bank Bills/Corporate Bond 2,990,588 2,990,588 4,502,754 4,502,754
Non-CurrentFloating Rate Notes 13,015,545 13,015,545 8,002,017 8,002,017 Investment in Controlled Entity: Unlisted shares at cost 0 515,000 0 515,000 13,015,545 13,530,545 8,002,017 8,517,017
NOTE 9 – OTHER ASSETS
CurrentPrepayments 227,281 220,320 92,232 90,156 Accrued Interest 83,793 83,793 105,891 105,891 Other 53,982 53,982 50,343 50,343 Total Other Current Assets 365,056 358,095 248,466 246,390
Non-CurrentOther 0 0 10,825 10,825
NOTE 10 – PROPERTY, PLANT AND EQUIPMENT
Freehold land Opening Balance: at Cost 180,000 180,000 Net Book Value of Land 180,000 180,000 180,000 180,000
Buildings Opening Balance: at Cost 263,000 263,000 Additions 96,227 96,227 Closing Balance 359,227 359,227 263,000 263,000
Opening Accumulated Depreciation 0 0 Depreciation for the year (20,642) (20,642) Closing Accumulated Depreciation (20,642) (20,642) 0 0 Net Book Value of Buildings 338,585 338,585 263,000 263,000
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
Motor Vehicles Opening Balance: at Cost 164,977 0 Additions 89,977 0 Disposals (37,509) 0 Closing Balance 217,445 0 164,977 0
Opening Accumulated Depreciation (70,936) 0 Additions (33,669) 0 Disposals 25,967 0 Closing Accumulated Depreciation (78,638) 0 (70,936) 0
Net Book Value of Motor Vehicles 138,807 0 94,041 0
Plant & Equipment Opening Balance: at Cost 3,889,980 3,363,378 Additions 923,861 727,877 Disposals (308,752) (200,734) Closing Balance 4,505,088 3,890,520 3,889,980 3,363,378
Opening Accumulated Depreciation (1,727,399) (1,467,730) Additions (759,836) (614,715) Disposals 255,191 149,813 Closing Accumulated Depreciation (2,232,044) (1,932,632) (1,727,399) (1,467,730)
Net Book Value of Plant & Equipment 2,273,044 1,957,888 2,162,581 1,895,648
Software Opening Balance: at Cost 1,655,327 1,655,327 Additions 699,604 699,604 Closing Balance 2,354,931 2,354,931 1,655,327 1,655,327
Opening Accumulated Amortisation (1,179,022) (1,179,022) Amortisation for the year (472,202) (472,202) Closing Accumulated Amortisation (1,651,224) (1,651,224) (1,179,022) (1,179,022)
Net Book Value of Software 703,706 703,706 476,305 476,305
64 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 65
Leasehold Improvements Opening Balance: at Cost 3,530,002 3,530,002 Additions 1,076,535 1,076,535 Closing Balance 4,606,537 4,606,537 3,530,002 3,530,002
Opening Accumulated Amortisation (446,653) (446,653) Amortisation for the year (447,280) (447,280) Closing Accumulated Amortisation (893,933) (893,933) (446,653) (446,653) Net Book Value 3,712,604 3,712,604 3,083,349 3,083,349
Opening Balance: at independent valuation July 1997 391,130 391,130 Closing Balance 391,130 391,130 391,130 391,130
Opening Accumulated Amortisation (248,459) (248,459) Amortisation for the year (52,830) (52,830) Closing Accumulated Amortisation (301,289) (301,289) (248,459) (248,459) Net Book Value 89,841 89,841 142,671 142,671 Net Book Value of Leasehold Improvements 3,802,445 3,802,445 3,226,020 3,226,020
Net Book Value of Property, Plant & Equipment 7,436,588 6,982,625 6,401,947 6,040,973
The independent valuation on 1 July 1997 was carried out by the Australian Valuation Offi ce and was on the basis of depreciated replacement cost of the assets concerned. The directors are of the opinion that this basis provides a reasonable estimate of the future economic benefi ts attributable to the assets.
NOTE 11 – INTANGIBLES
Goodwill at cost 407,499 0 407,499 0 Accumulated amortisation (81,500) 0 (40,750) 0 325,999 0 366,749 0
NOTE 12 – PAYABLES
Trade Creditors 1,432,250 1,209,808 1,862,062 1,666,560 Other Creditors 2,716,797 2,478,541 1,835,467 1,835,467 Total Payables 4,149,047 3,688,349 3,697,529 3,502,027
NOTE 13 – INTEREST BEARING LIABILITIES
CurrentDebtor Finance Facility – secured 125,895 0 0 0Hire Purchase Liability – secured 52,385 0 56,436 0 Loans – unsecured 32,240 0 0 0 Total Current Interest Bearing Liabilities 210,519 0 56,436 0
Non-CurrentHire Purchase Liability – secured 133,890 0 79,554 0
The Debtor Finance Facility is secured by a First Registered Mortgage Debenture Charge over Work Solutions Group Pty Ltd and guarantees by the Directors of Work Solutions Group Pty Ltd. Interest on this facility is charged at prevailing market rates. See also note 20.
The loans are unsecured and repayable on demand. Interest rates are fi xed and vary between 8% and 8.5%.
NOTE 14 – PROVISIONS
CurrentDividends 6 2,200,000 2,200,000 840,000 840,000 Employee entitlements 1,114,159 996,250 1,065,515 993,234 Restoration 40,625 40,625 28,899 28,899 Surplus leased premises 3 0 0 477,029 477,029 Other 37,915 37,915 15,719 15,719 Total Current Provisions 3,392,699 3,274,790 2,427,162 2,354,881
Non-CurrentEmployee entitlements 2,599,328 2,572,078 2,540,554 2,516,751 Restoration 191,113 191,113 119,069 119,069 Total Non-Current Provisions 2,790,441 2,763,191 2,659,623 2,635,820
NOTE 15 – OTHER LIABILITIES
CurrentLease incentive liability 91,248 91,248 84,978 84,978
Non-CurrentLease incentive liability 534,282 534,282 549,412 549,412
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Notes Consolidated Company Consolidated Company $ $ $ $
66 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 67
NOTE 16 – CONTRIBUTED EQUITY
Balance at beginning of fi nancial year (7,472,473 ordinary shares fully paid) 13,266,522 13,266,522 13,266,522 13,266,522 Balance at end of fi nancial year 13,266,522 13,266,522 13,266,522 13,266,522
NOTE 17 – RETAINED PROFITS AND DIVIDENDS
Retained Profi tsRetained profi ts at the beginning of the fi nancial year 2,101,986 2,246,357 1,501,280 1,501,280 Dividends provided for or paid (3,700,000) (3,700,000) (1,500,000) (1,500,000)Net profi t 5,801,208 5,865,867 2,100,706 2,245,077Retained profi ts at the end of the fi nancial year 4,203,194 4,412,224 2,101,986 2,246,357
EquityTotal equity at the beginning of the fi nancial year 15,372,389 15,512,879 14,875,304 14,767,802Total changes in equity recognised in the Statement of Financial Performance 5,801,208 5,865,867 2,100,706 2,245,077Transactions with owners as owners: Dividends (3,700,000) (3,700,000) (1,500,000) (1,500,000)Total changes in outside equity interests (23,910) 0 (103,621) 0Total equity at the reporting date 17,449,687 17,678,746 15,372,389 15,512,879
NOTE 18 – OUTSIDE EQUITY INTERESTS
Reconciliation of outside equity interests in controlled entities Opening balance 3,881 0 Add share of acquisition of controlled entity 0 107,502 Add share of operating profi t/(loss) (23,910) (103,621) Closing balance (20,029) 3,881
NOTE 19 – COMMITMENTS
Capital expenditure contracted for is payable as follows: Not later than 1 year 123,122 0 64,069 0 Later than 1 year but not later than 5 years 124,543 0 71,922 0 Total Capital Commitments Payable 247,665 0 135,991 0
Operating lease expenditure contracted for is payable as follows: Not later than 1 year 2,114,125 1,991,003 2,062,281 1,954,356 Later than 1 year but not later than 5 years 6,774,122 6,649,579 6,761,853 6,520,103 Later than 5 years 4,485,568 4,485,568 6,129,233 6,129,233 Total Operating Lease Commitments Payable 13,373,815 13,126,150 14,953,367 14,603,692
Total Commitments Payable 13,621,480 13,126,150 15,089,358 14,603,692
NOTE 20 – CONTINGENCIES
The Company’s bank has provided a guarantee of $350,000 to the lessor of the head offi ce premises on 1 November 1997. The directors are not aware of any circumstance or information which would lead them to believe that this liability will crystallise and consequently no provisions are included in the accounts in respect of this matter.
During the year, the Company became guarantor for a Debtor Finance Facility on behalf of Work Solutions Group Pty Ltd to a maximum value of $175,000, for working capital purposes. The directors have no reasons to believe that the guarantee will be drawn upon and thus no provisions are included in the accounts in respect of this matter.The directors are not aware of any other material contingent liabilities.
NOTE 21 – FINANCIAL INSTRUMENTS DISCLOSURE
a) Interest Rate Risk The consolidated entity’s exposure to interest rate risk and the effective weighted average interest rate for classes of fi nancial assets and fi nancial liabilities is set out below:
Weighted Floating Fixed Fixed average Interest Interest Rate Interest Rate Non-Interest interest rate Rate 1 year or less 1 to 5 years Bearing Total
2000–2001 Financial Assets Cash 4.43% $936,601 $0 $0 $0 $936,601 Receivables n/a $0 $0 $0 $5,293,851 $5,293,851 Investments 6.24% $13,015,545 $2,990,588 $0 $0 $16,006,133
Financial Liabilities Accounts Payable n/a $0 $0 $0 $4,149,047 $4,149,047 Interest Bearing Liabilities 12.25% $0 $210,519 $133,890 $0 $344,409 Dividends Payable n/a $0 $0 $0 $2,200,000 $2,200,000
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
68 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 69
Weighted Floating Fixed Fixed average Interest Interest Rate Interest Rate Non-Interest interest rate Rate 1 year or less 1 to 5 years Bearing Total
1999–2000
Financial Assets Cash 5.98% $594,821 $0 $0 $0 $594,821 Receivables n/a $0 $0 $0 $5,601,172 $5,601,172 Investments 6.11% $8,002,017 $0 $4,502,754 $0 $12,504,771
Financial Liabilities Accounts Payable n/a $0 $0 $0 $3,697,529 $3,697,529 Dividends Payable n/a $0 $0 $0 $840,000 $840,000
b) Foreign Exchange Risk The consolidated entity has not entered into any foreign currency transactions.
c) Credit Risk ExposureCredit risk represents the loss that would be recognised if counterparties failed to perform as contracted.
The credit risk on fi nancial assets of the consolidated entity which have been recognised in the Statement of Financial Position, is the carrying amount of those assets, net of any provision for doubtful debts. Due to the nature of the majority of the consolidated entity’s clients (mainly Commonwealth and State Government), such risk is considered by the Directors to be very low.
d) Net fair values of fi nancial assets and liabilitiesThe net fair values of investments have been valued at cost less amortisation of any premium (or discount) paid to maturity. The consolidated entity considers this is an appropriate treatment as it intends to hold all such investments to maturity. For other assets and other liabilities, the net fair value approximates their carrying value. None of the fi nancial assets and fi nancial liabilities are readily traded on organised markets in standardised form other than investments. The aggregate net fair values and carrying amounts of fi nancial assets and fi nancial liabilities are disclosed in the Statement of Financial Position.
NOTE 22 – FINANCING ARRANGEMENTS
The consolidated entity has access to a bank overdraft facility of $1,000,000 (2000: $1,000,000). The amount of unused credit at the end of the fi nancial year was $1,000,000 (2000: $1,000,000). Any interest arising from the overdraft credit arrangement is charged at prevailing market rates.
NOTE 23 – PARTICULARS IN RELATION TO THE CONTROLLED ENTITY
There was no change in the investment in controlled entities during the year. (On 1 July 1999, the Company purchased 50% of the ordinary shares of Work Solutions Group Pty Ltd for cash consideration).
Consideration (cash) 0 515,000
Fair value of net assets of entity acquired Property, plant & equipment 0 248,393 Cash 0 (218,428) Trade debtors 0 464,341 Other assets 0 101,331 Trade creditors 0 (140,149) Hire purchase liability 0 (161,932) Borrowings 0 (87,620) Provisions 0 (90,234) Other liabilities 0 (15,699) 0 0 0 100,003 Additional share issue (acquired by HSA) 0 115,000 0 0 0 215,003 Outside equity interests at acquisition 0 0 0 (107,502) 0 0 0 107,502
Goodwill on acquisition 0 0 0 407,499
NOTE 24 – NOTES TO THE STATEMENT OF CASH FLOWS
For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks and deposits at call, net of outstanding bank overdrafts.
(a) Reconciliation of cashCash at the end of the reporting period as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:
Cash on Hand 118,555 117,392 38,159 37,559 At call deposits with fi nancial institutions 818,046 819,546 556,662 614,722 936,601 936,938 594,821 652,281
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
70 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 71
(b) Reconciliation of operating profi t after income tax to net cash provided by operating activities
Operating profi t after income tax 5,777,298 5,865,867 1,997,085 2,245,077 Add/(less) items classifi ed as investing/fi nancing activities: (Profi t)/loss on sale of non-current assets 20,005 27,454 39,582 35,046
Non-cash fl ows in operating profi t Amortisation 1,013,061 972,312 1,027,039 1,027,039 Depreciation 814,147 635,357 725,213 553,776 Diminution in value of non current investments 18,704 18,704 61,117 61,117 Surplus Leased Space – fi tout write-off 0 0 239,013 239,013
Net cash provided by operating activities before change in assets and liabilities 7,643,216 7,519,694 4,089,049 4,161,068
Change in assets and liabilities: (Increase)/Decrease in prepayments (135,049) (130,164) 547,670 517,317 (Increase)/Decrease in other assets 29,284 29,284 (81,709) (103,616) Decrease in receivables 271,831 627,194 3,091,293 3,334,088 Increase in payables 765,944 465,259 286,978 266,232 Increase/(Decrease) in provisions (263,940) (312,719) 630,450 607,946 Increase in income taxes payable 551,993 551,697 1,070,170 1,086,824 Increase/(Decrease) in deferred taxes payable 58,525 58,525 (250,027) (250,027) (Increase)/Decrease in future income tax benefi ts 200,526 200,526 (265,277) (265,277) Increase/(Decrease) in other liabilities (8,860) (8,860) 68,014 68,014 Net cash provided by operating activities 9,113,470 9,000,436 9,186,610 9,422,568
(c) Acquisition of entitiesNo entities were acquired during the fi nancial year. (2000: the Company purchased 50% of the ordinary shares of Work Solutions Group Pty Ltd. Details of the acquisition is shown in Note 23).
(d) Loans to directorsThere have been no loans to Directors during the year. (2000: At the time of the Company’s acquisition of Work Solutions Group Pty Ltd, the directors of that Company repaid all advances previously made to them. This is shown in the consolidated cash fl ow statement under Loans to directors).
NOTE 25 – DIRECTORS’ REMUNERATION
The number of directors of the Company and consolidated entity whose income from the Company and consolidated entity or any related party falls within the following bands: Number Number Number Number
$0 to $9,999 1 1 3 2 $10,000 to $19,999 4 3 3 3 $20,000 to $29,999 1 0 0 0 $30,000 to $39,999 1 1 1 1 $70,000 to $79,999 0 0 1 0 $80,000 to $89,999 0 0 1 0 $220,000 to $229,999 0 0 1 1 $250,000 to $259,999 1 1 0 0 8 6 10 7
The total remuneration paid or payable, or otherwise made available, to all directors in the consolidated entity fromthe consolidated entity or any related party: 387,854 352,007 444,319 276,245
The Managing Director is also an Executive of the Company. The remuneration of the Managing Director has therefore been included in the above note.
Directors’ income does not include insurance premiums paid by the Company or related parties in respect of Directors’ and Offi cers’ Liabilities and Legal Expenses insurance contracts, as the insurance policies do not specify premiums paid in respect of individual directors. Details of the insurance premiums paid are set out in the Directors’ Report.
NOTE 26 – RELATED PARTIES
Directors
The names of each person holding the position of Director of Health Services Australia during the reporting period are Messrs R. Taylor AO, R. Basham, Dr S. Morey AM, Ms V. Fanning and Ms R. James. Mr W. Wilkinson AM commenced as a Director on 15 December 2000.
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
72 Health Services Australia: excellence, innovation and integrity in health Health Services Australia: excellence, innovation and integrity in health 73
Details of directors’ remuneration are set out in Note 25.
The Chairman of the Company resigned as Chairman of the Australian Government Employee Superannuation Trust (AGEST) on 5 October 2000. AGEST is the default superannuation service provider of the Company and approximately $519,000 in employee and employer contributions is lodged annually with AGEST under normal terms and conditions.
During the year, the Company charged AGEST for the sub-letting of one offi ce and associated costs. The amount charged was $4,455, and was on full commercial terms.
No director has entered into a material contract with the Company during the reporting period, and there were no material contracts involving directors’ interests existing at year end.
The Company is wholly owned by the Commonwealth Government. No director holds shares in the Company.
Partly owned controlled entities
Details of interests in partly owned controlled entities are set out at Note 23.
During the year the Company entered into the following transactions with partly owned controlled entities:– interest received or receivable on the loan to the controlled entity of $43,245 (2000: $36,569)– reimbursement of costs for airfares booked under the Company’s name of $39,943 (2000: $28,028)– sub-lease revenue of $31,334 (2000: $20,439)– health services of $1,185 (2000: $5,525)
The aggregate amounts receivable from, and payable to, partly owned controlled entities by the Company at balance date are shown below: Receivables: Current 79,514 46,907 Non-Current 585,000 585,000 664,514 631,907 Payables: Current 2,882 0 Non-Current 0 0 2,882 0
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
These amounts include trade debtors and trade creditors as well as loans. Refer Note 7.
All dealings with the partly owned controlled entity are in the ordinary course of business and on normal terms and conditions. The loan is for a term of 8 years, commencing 14 July 1999, with repayments of principal to commence 14 July 2002. Interest on the outstanding balance is calculated at prevailing market rates, reviewed quarterly (2000: fi xed rate of 6.75%).
NOTE 27 – ECONOMIC DEPENDENCE
The activities of the Company are dependent on the signifi cant level of services provided to Centrelink, and immigration related services provided to, and on behalf of, Department of Immigration and Multicultural Affairs, and the resultant revenue from the provision of these services.
NOTE 28 – AUDITORS’ REMUNERATION
The Company’s external auditor is the Australian National Audit Offi ce. MGI Meyrick Webster performs an audit review of the controlled entity’s fi nancial information.Remuneration for audit services: 72,500 66,000 60,000 55,000
NOTE 29 – EARNINGS PER SHARE
The Company earned 78.5 cents per share after tax (in 2000: 30 cents per share).
NOTE 30 – EVENTS SUBSEQUENT TO BALANCE DATE
Acquisition of SubsidiaryOn 31 August 2001, the Company agreed to acquire a 100% interest in three companies that comprise the TMVC The Travel Doctor Group for consideration of $1,380,000. The Group specialises in travel medicine.The event has no effect on the fi nancial statements for the year ended 30 June 2001.
HEALTH SERVICES AUSTRALIA LIMITED ABN 99 078 934 791 AND CONTROLLED ENTITIES
NOTE TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2001
2000–2001 1999–2000 Consolidated Company Consolidated Company $ $ $ $
74 Health Services Australia: excellence, innovation and integrity in health
Health Services Australia: excellence, innovation and integrity in health 75
ContactsPOSTAL
GPO Box 9821
Capital City, Postcode
Head Offi ce
Level 1
15 Bowes Street
WODEN ACT 2606
02 6269 2100
Canberra
Level 1
15 Bowes Street
WODEN ACT 2606
02 6269 2001
Sydney
Level 4
136 Chalmers Street
SURRY HILLS NSW 2010
02 8396 0600
Parramatta
Level 4
2–10 Wentworth Street
PARRAMATTA NSW 2150
02 9806 7333
Newcastle
Level 1
50 Glebe Road
THE JUNCTION NSW 2291
02 4926 4033
Wollongong
Level 3
43 Burelli Street
WOLLONGONG NSW 2500
02 4226 0173
Melbourne
Level 4
Casseldon Place
2 Lonsdale Street
MELBOURNE VIC 3000
03 9224 8334
Hobart
200 Elizabeth Street
HOBART TAS 7000
03 6211 0464
Adelaide
Level 8 - West
55 Currie Street
ADELAIDE SA 5000
08 8468 6084
Perth
Level 3
95 William Street
PERTH WA 6000
08 9324 6444
Brisbane
Level 7
340 Adelaide Street
BRISBANE QLD 4000
07 3307 9444
Southport
Ground Floor
3 Short Street
SOUTHPORT QLD 4215
07 5591 6144
Darwin
Level 1
Cavanagh Centre
43 Cavanagh Street
DARWIN NT 0800
08 8981 7492
74 Health Services Australia: excellence, innovation and integrity in health