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2014 AGED CARE APPROVALS ROUND - ESSENTIAL GUIDE

SECTION 3 – RESIDENTIAL AGED CARE PLACES

IMPORTANT INFORMATION ABOUT APPLYING FOR RESIDENTIAL AGED CARE PLACES

A. Purpose of this Section

This section of the 2014 ACAR Essential Guide provides instructions on how to complete your application(s) for residential aged care places. If you are applying for both residential aged care places and a capital grant for a service (or a capital grant only), please refer to Section 4, Section 5 and Section 6 of this 2014 ACAR Essential Guide.

The information in this section should be read in conjunction with: Section 1 ‘Introduction’ and Section 7 ‘Regional Distribution of Aged Care Places’; and the ‘Questions and Answers’, available on the Department’s website at: www.dss.gov.au/2014ACAR.

B. Important considerations for the 2014 ACAR

New arrangements relating to fees and payments From 1 July 2014 there will be changes to: the fees paid by care recipients; the subsidy able to be claimed by approved providers; and accommodation payments made by care recipients.

In the 2014 ACAR you will need to demonstrate that: you understand these changes; you will have systems in place to ensure that appropriate information is provided to care recipients about

these new arrangements; and these new arrangements have been considered in your financial forecasts.

Higher accommodation supplementAs part of the changes to aged care, the Government will increase its contribution towards the accommodation costs of care recipients with limited resources, by increasing the accommodation supplement payable for care recipients of residential aged care services that are newly built or significantly refurbished on or after 20 April 2012. The higher accommodation supplement is designed to encourage the development of additional capacity in the residential aged care sector and enhanced quality and amenity of accommodation for care recipients.

Transitional Business Advisory Services Existing approved providers of residential aged care may seek the assistance of the Government’s Transitional Business Advisory Services (TBAS). This service assists providers to transition to the new accommodation payment arrangements that start from 1 July 2014. The Department has engaged KPMG to provide this service. The TBAS hotline can be contacted on 1800 122 092 or email [email protected]. Further information, including the application form, is available at www.kpmg.com/au/tbas.

Use of information held by the Department and others In addition to the information provided in your application, as part of the overall assessment process, the Department will consider any other relevant information available to it, including but not limited to: information obtained from the Aged Care Complaints Scheme and the Australian Aged Care Quality

Agency; information you have provided to the Department in relation to other assessment processes. For example,

any application to transfer, vary or exchange existing places; and information about your compliance history as a provider of aged care.

2014 ACAR Essential Guide: Section 3 – Residential aged care places of 21

http://www.kpmg.com/au/tbas

mailto:[email protected]

http://www.dss.gov.au/2014ACAR

C. Preparing your application

You should consider the following when preparing your application: applications may be made by existing approved providers of residential aged care places, or organisations

that currently do not deliver residential aged care but have relevant experience demonstrating their suitability to deliver residential aged care.

if you are not an approved provider at the time of applying for residential aged care places in the 2014 ACAR, you will not be allocated places until you are approved as an approved provider of residential aged care under the Act. This approval process can take some time, and the Department encourages applicants to apply for approved provider status as early as possible. Further information on how to become an approved provider can be accessed at the following webpage link, Approved Provider Information.

complete one application form (Residential Aged Care Places) for EACH SERVICE for which you are seeking residential aged care places.

if you are also seeking a capital grant in respect of the service – do not complete this form. Complete the separate form, for ‘Capital Grant Only’ or ‘Residential Aged Care Places and a Capital Grant’ applications (refer to Section 4, Section 5 and Section 6 of this 2014 ACAR Essential Guide).

if you are only seeking a capital grant (and not also seeking residential aged care places in relation to the service), complete the separate form ‘Capital Grant Only’ (refer to Section 5 and Section 6 of this 2014 ACAR Essential Guide).

D. Lodging your application

You are required to submit ONE original and ONE copy of your application. Applications are to be submitted to the Department of Social Services. Address details can be found in Section 1 of the 2014 ACAR Essential Guide.

Applications and associated attachments can also be submitted via email at [email protected]. For further details please refer to Section 1 of the 2014 ACAR Essential Guide.

Please note: applications will not be accepted by facsimile; late or incomplete applications may not be accepted; attach documents only where required or requested, other documents will not be considered; and ensure your application is received within the Department by no later than:

2.00pm on 4 July 2014.


mailto:[email protected]

http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-approvedp-index.htm

COMPLETING YOUR ‘RESIDENTIAL AGED CARE PLACES’ APPLICATION FORM

COVER PAGE OF APPLICATION FORM

Applicant organisationProvide either your approved provider name, or the full legal name of your organisation if you are seeking approved provider status. Do not use abbreviated approved provider or legal names of your organisation.

Aged care serviceProvide the full name of the existing, or proposed, aged care service.

Aged care planning regionInsert the name of the aged care planning region in which the service is, or will be located. Aged care places are allocated on the basis of aged care planning regions. Aged care planning region maps can be accessed at the following webpage link, ACPR Maps.

PART 1: APPLICANT DETAILS

1.1 ApplicantIf you are an existing approved provider, provide your Australian Business Number (ABN) and NAPS ID number (if known). If you are not yet an approved provider, provide your ABN.

1.2 Applicant postal addressThe postal address provided will be recorded as the address for all notices related to the 2014 ACAR.

1.3 Contact detailsProvide the email and telephone contact details for two contacts. The primary contact is the person responsible for your organisation’s application, and an alternate contact should have a detailed understanding of your application, and will be contacted should the primary contact be unavailable.

PART 2: SERVICE DETAILS

2.1 Service detailsThe service details to be provided include the name of the existing or proposed residential aged care service and the RAC Service ID number (existing service only).

2.2 Physical address of the serviceProvide the physical address of the service including the street number and name, suburb or town, state or territory and postcode (if known).

PART 3: RESIDENTIAL AGED CARE PLACES BEING SOUGHT

3.1 Residential aged care places soughtAll providers seeking residential aged care places are required to demonstrate their capacity to provide services that are appropriate to the needs of individuals and respectful of their preferences including any cultural, linguistic, religious or other preferences. Some residential aged care places however will be allocated on the basis that the provider will provide priority of access for one or more special needs groups or in relation to a key issue.

The ‘Regional Distribution of Aged Care Places’ at Section 7 identifies where priority may be given to applications which focus on particular special needs groups and/or key issues. In some cases, specific geographic locations within an aged care planning region have been identified.


http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-acar-regions-australia.htm

The table at 3.1 requires applicants to provide the total number of residential aged care places being sought; a maximum number and a minimum number must be entered. The minimum number of places will be taken into consideration where the number of places applied for in the aged care planning region exceeds the number of available places.

As part of the table, applicants must also enter how many of the total residential aged care places being sought are for general access and/or priority of access in the provided fields. Again, a maximum and a minimum number must be entered. Importantly, the total of these places must equal the total number of places being sought.

The difference between general access and priority of access is as follows:

General access Any residential aged care place being sought that does not focus on one or more geographic locations, special needs groups or an identified key issue.

Priority of access Any residential aged care place being sought that does focus on one or more geographic locations, special needs groups or an identified key issue.

Please note that an allocation of priority access places may be subject to a condition of allocation.

Applications may be made for both general access and priority of access places as part of the same application. Applicants may also apply to provide priority of access to multiple special needs groups and/or key issues. For example, your organisation may wish to provide residential aged care to one or more groups of people from culturally and linguistically diverse backgrounds who have dementia. Alternatively, you may wish to provide priority of access to people from Aboriginal and Torres Strait Islander communities who are also financially or socially disadvantaged. Refer to example 2 on page 7.

Applicants may either name the special needs group in full or, for ease of entry, may use the special needs group codes provided in the box below.

Special Needs Groups

people from Aboriginal and Torres Strait Islander communities (ATSI)

people from culturally and linguistically diverse backgrounds (CALD)

people who live in rural or remote areas (R-R) people who are financially or socially

disadvantaged (FSD) veterans (VET) homeless (HOM) care leavers (CLV) parents separated from their children by forced

adoption or removal (PSC) lesbian, gay, bisexual, transgender and

intersex people (LGBTI)


Example 1

The example in the table below indicates that an applicant is seeking: a total maximum of 70 residential aged care places (minimum of 35) consisting of;

o a maximum of 40 residential aged care places (minimum of 20) for general access; ando a maximum of 20 residential aged care places (minimum of 10) to provide priority of access to

people from ATSI communities; ando a maximum of 10 residential aged care places (minimum of 5) to provide priority of access to

LGBTI people.

Total residential aged care places soughtSpecify the total number of residential aged care places sought for this service

Number of places Max

Number of places Min

70 35

Of the total residential aged care places sought, how many are for general access and/or priority of access?NOTE: General access places + Priority access places MUST EQUAL total residential aged care places

General access places soughtNumber of places Max


40 20

Priority of access places sought

Geographic Location Special needs group

CALD community (if

applicable)

Identified key issue (if any)



ATSI 20 10

LGBTI 10 5


Example 2

The example in the table below indicates that an applicant is seeking: a total maximum of 60 residential aged care places (minimum of 30) consisting of;

o a maximum of 10 residential aged care places (minimum of 5) to provide priority of access to people from CALD backgrounds (Chinese & Vietnamese);

o a maximum of 10 residential aged care places (minimum of 5) to provide priority of access to people who are financially and socially disadvantaged (FSD); and

o a maximum of 40 residential aged care places (minimum of 20) to provide priority of access to people from CALD backgrounds (Chinese & Vietnamese) with dementia.

Total residential aged care places soughtSpecify the total number of residential aged care places sought for this service



60 30

Of the total residential aged care places sought, how many are for general access and/or priority of access?NOTE: General access places + Priority access places MUST EQUAL total residential aged care places

General access places soughtNumber of places Max


- -

Priority of access places sought

Geographic Location Special needs group

CALD community (if

applicable)

Identified key issue (if any)



CALD ChineseVietnamese

10 5

FSD 10 5CALD Chinese

VietnameseDementia 40 20

3.2 How many new residential respite bed days per annum will be provided at this service?Based on the maximum number of places you are applying for, provide details of how many new residential respite bed days, per annum, will be provided at the service.

If none of the new places you are seeking will be used to provide new respite care, insert 0 in the box.

3.3 When will the places that are the subject of this application be made operational?Please provide the expected timeframe that your organisation plans to make the residential aged care places being sought operational. This may be; immediately, within 1 month, 2-3 months, 4-6 months, 7-12 months, 13-18 months or 19-24 months. The total column must equal the total maximum number of places being sought.

For new or existing services that are purchasing land, constructing a new building, or extending or refurbishing an existing service, the expected timeframe must align with the key milestones set out at part 5.2 of this form.


PART 4: SERVICE PROPOSAL

The purpose of this question is to obtain a detailed description of your proposal for this service. It should not be limited to a description of your existing service or your existing service delivery model.

4.1 Provide a detailed description of your proposal for this service:A. Features of the proposal;B. What need(s) is/are being met?C. What evidence has been relied on to determine need(s)?D. How will the service proposal address the need(s)?

Types of information that could be included in your response to this question include: details of any innovations you are proposing and how these will provide benefits to care recipients, their

carers and their families; details of how the places will be accommodated in the service, including any:

reorganisation; use of non-operational, unfunded or provisionally allocated places; details of any proposed variations to existing places (including transfers of places); detail of any capital works planned or commenced; and current tenancy/ occupancy agreements in place (if relevant);

your service delivery model, including staffing levels; details of the aged care needs of the region and the needs of the identified geographical area(s), and/or key

issues; how you will address the care needs of concessional, assisted, supported or low-means care recipients 1;

and any research or consultations that you have conducted in support of this application.

If, following the lodgement of your application (and before the results of the 2014 ACAR are announced), you experience anything that will significantly affect your capacity to implement your proposal, (for example, financial capacity, costs of the project and/or availability of land), you should notify the Department in writing as soon as any change to your proposal becomes evident.

This question does not constitute or form part of an application for a variation of, and/or transfer of, places. Detailed information about seeking a variation or transfer of places can be accessed at the following webpage links, Apply to Vary or Apply to Transfer.

The word limit for this question is 1000 words.

1 Low-means care recipients is a term that will be used in the new Allocation Principles 2014 to refer to care recipients who enter care on or after 1 July 2014 who are eligible for the accommodation supplement or whose means tested amount is less than the maximum accommodation supplement on the care recipient’s entry day. Like concessional, assisted and supported residents, low-means care recipients will also be included in relevant ratios. Providers will continue to be expected to provide a number of places for people of low means (regardless of whether they are described in the legislation as concessional, assisted, supported or low-means care recipients).


http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-transfer-agedcare.htm

http://www.health.gov.au/internet/main/publishing.nsf/Content/ageing-rescare-app-vca.htm

PART 5: SERVICE PLANNING AND DEVELOPMENT

DO NOT ANSWER PART 5 IF YOU ARE NOT MAKING CHANGES TO BUILDINGS OR ESTABLISHING NEW BUILDINGS FOR THE DELIVERY OF AGED CARE - PROCEED TO PART 6

5.1 Describe your proposal to extend, refurbish or develop new buildings for the delivery of aged care services. This question relates to whether the premises used, or intended to be used, to provide care are suitably planned and located for the provision of aged care.

Selecting a suitable location that is accessible to older people and their families and to medical and other services enhances the quality of a residential aged care service. Similarly, proper planning of building refurbishments or construction of new buildings helps to ensure that the physical environment meets the needs of care recipients and provides a safe working environment for staff.

Depending on whether you are proposing refurbishments to existing buildings or the construction of new buildings, the types of information that could be included in your response to this question include: a description of the proposed refurbishments or new buildings; for new buildings, a description of the surrounding land use, including:

neighbourhood characteristics, such as access to green space, parklands and recreational facilities; availability of transport systems, such as access to public transport and road access; proximity to other services, such as health and other aged care services and shopping centres; any environmental (for example, bushfire or flood prone or site contamination) issues; heritage issues; and/or any relevant emergency management plans applicable to the service location.

any planning requirements supporting the establishment/redevelopment of a residential aged care service; the steps you have taken, or will take, to meet planning guidelines and requirements, including zoning and

environmental considerations for the planning approval process; and the steps you have taken, or will take, to ensure resident safety, comfort, privacy and mobility.


5.2 Provide the key milestones yet to be achieved in the development of your service.The table in this question lists the key milestones that you have met, or will meet, in planning the development of your service. Your application should include: all relevant evidence of actions taken to acquire land or building(s) in the form of certified copies of relevant

documents, such as a title, contract or signed lease; and a map showing the location of the land or building(s) you have acquired/intend to acquire.

In preparing your response to this question, please note that: the date to be inserted in the column headed ‘Date achieved’ will be a past date, that is, you have already

met the particular milestone; the information to be inserted in the column headed ‘Date to be achieved’ will be a future date, that is, the

time you expect to achieve the particular milestone assuming an allocation of places is made; and you must provide evidence for the key milestones already met. Include all relevant evidence, such as building

certification.

Unmet milestones may be included in any subsequent condition of allocation attached to the new places.

5.3 Identify any known risks that may affect your ability to meet the above key milestones.Detail any risks that may impact your ability to meet key milestones, including the actions you have taken and/or propose to take to manage identified risks.


If you experience any change in circumstances that will significantly impact upon your ability to meet the key milestones you have provided in response to question 5.2, you should notify the Department, in writing, of the changes at the earliest opportunity.


Land and building development financial details

5.4 Provide details of any land and/or building development costs associated with this application.Note that these are capital works for which a capital grant is not being sought in this 2014 ACAR. If a capital grant is being sought for this service, the ‘Capital Grant Only’ or ‘Residential Aged Care Places and a Capital Grant’ application form should be completed.

Complete the table in respect of the total capital works cost required to complete the project related to your application.

5.5 Current status of funds negotiations.If borrowings are planned, indicate, by ticking one box only, the stage your negotiations have reached with the proposed lender.

You must provide evidence that supports the status of your funds negotiations and indicate in the relevant box(es) where you have attached evidence.


PART 6: CAPACITY OF APPLICANT TO DELIVER RESIDENTIAL AGED CARE SERVICES

A. Management and ability to provide appropriate care

Provide information about your organisation’s capacity to manage the service including the expertise and experience of the people who will manage the service.

6.1 Describe your organisation’s expertise and experience in providing residential aged care or similar services. Types of information that could be included in your response to this question include: your managerial staff including their relevant qualifications, skills and responsibilities; your organisation’s experience, capacity and past history of delivering residential aged care services (or

similar services); details of the types of care your organisation specialises, or will specialise, in delivering; and your staff management, recruitment, retention and performance management strategies.

Applicants should note that the necessary expertise and experience is not limited to the provision of residential aged care. Applicants with experience in providing other aged care or residential services (such as organisations with experience in managing retirement villages) are also encouraged to apply for residential aged care places.

The word limit for this question is 750 words. 6.2 Describe the systems in place to enable your organisation to deliver appropriate care in accordance with the legislation.All applicants must demonstrate how they intend to provide care in accordance with the requirements detailed in the Act and Aged Care Principles. In response to this question applicants need to demonstrate that: they understand the requirements of the legislation and have systems in place to ensure that this

understanding is shared by staff; and they have systems in place to ensure that care is (or will be) provided in accordance with the legislation.

Your response should include practical examples of how you have, or will, provide appropriate care.

Types of information that could be included in your response to this question include: a description of the systems in place to ensure that staff understand their responsibilities under the

legislation; the measures you have, or will put in place, to ensure your service staff provide care of a quality that is

consistent with the standards and responsibilities described in the Act and Aged Care Principles; how you will monitor your organisation’s compliance with the requirements of the legislation; how you achieve continuous improvement within your organisation; and how your service will coordinate with service providers and stakeholders in the community to achieve

quality care outcomes.


6.3 Describe how you will provide appropriate care to people with dementia.All applicants must demonstrate how they intend to provide care for people living with dementia. Your response should include practical examples of how you have, or will, provide this type of care.

Types of information that could be included in your response to this question include how you will: provide care for people with dementia in a residential aged care environment, including:

- your admissions policy;- the qualifications and skills of the staff who will be providing care for people with dementia and/or

more complex needs; and- practical examples and linkages with relevant key organisations and services.


ensure the availability of suitably trained staff to meet these particular care needs; identify the particular care needs of people living with dementia; manage challenging behaviour, provision of activities, medication management, and involvement of family

members; establish links with relevant key organisations and services; ensure the safety and security of staff in accordance with work health and safety requirements; and ensure the safety and security of care recipients.


6.4 Does this proposal involve specialisation in dementia care? This is self-explanatory.

6.5 How will the building design and external environment address the particular care needs of people with dementia?This question should only be answered if you answered ‘yes’ to Question 6.4.

Describe how the building design and external environment will meet the particular and changing care needs of people with dementia, including people with more complex needs.

Types of information that could be included in your response to this question include: design features that are, or will be incorporated into your service in order to provide appropriate

accommodation for people with dementia (secure unit, separate wing, wandering paths etc); the design measures you have in place to provide for the safety and security of staff such as occupational

health and safety requirements; and the design measures you have in place to provide for the safety and security of care recipients.


6.6 Describe the specific strategies your organisation has in order to provide specialised dementia care.This question should only be answered if you answered ‘yes’ to Question 6.4.

Applicants will need to expand upon the response provided under 6.3 and 6.5 to further demonstrate their capacity to provide specialised dementia care.

Types of information that could be included in your response to this question include: knowledge of and active participation in contemporary best practices for delivering dementia care; any contributions made to research/studies in the field of dementia care; any further training and the frequency of such training to provide quality care to people with dementia; the strategies you employ to protect the rights of care recipients with dementia; and any other approaches or innovations you will implement to provide quality care to people with dementia.



B. Provision of appropriate care for people with special needs

6.7 Describe how you will provide appropriate care for people with special needs.This question requires you to demonstrate that your organisation can provide appropriate care for people with special needs. All residential aged care providers are expected to be able to deliver appropriate care to people from special needs groups as part of their normal service delivery. In answering this question applicants should consider how they will provide care to the nine special needs groups identified in section 11-3 of the Aged Care Act 1997.

If you are intending to provide specific services for a particular special needs group you will need to provide more detailed information in question 6.8.


6.8 For each of the special needs groups identified at question 3.1, provide details of: A. Evidence of need in the region/geographic location for residential aged care for the special needs

group; B. Organisational experience and/or expertise in the provision of care for the special needs group; andC. Any tailored approaches you plan to take to meet this group’s particular care needs.

For each special needs group identified, your response should describe: how you have identified the particular social issues, health and/or care needs of people from the special

needs group; how you will provide care, having regard to the particular physical, social, spiritual and environmental care

needs of the individual care recipients; how you will ensure the availability of suitably trained staff to meet these particular care needs; and how you will establish linkages with relevant communities and/or key organisations in the nominated region

and/or an identified geographic location(s).

The word limit for this question is 500 words for each special needs group identified.

C. Continuity of care

6.9 How will you ensure continuity of care to current and future care recipients?The Department will assess your ability to provide continuity of care to current and future care recipients.

Your response should describe how you will: manage the changing care needs of care recipients; manage the transition of residents, for example residents’ admission and return from hospital stays; co-ordinate care with other services that care recipients may need to access; ensure continuity of care if care recipients need to move between services (including because of changing

care needs); and ensure that staff understand, and comply with, the security of tenure requirements for care recipients.



Compliance with responsibilities

Protecting the rights of care recipients

6.10 Describe the measures you will implement to protect the rights of care recipients. The Department will be assessing whether you understand your obligations in relation to protecting the rights of care recipients (and providing them with relevant information) as well as whether you have strategies in place to ensure that this occurs.

The Department will consider your understanding of, and commitment to, implementing: arrangements for ensuring that all prospective care recipients and existing care recipients have relevant

information about fees and payments; complaints procedures; arrangements to ensure availability of advocacy services; and appropriate security of tenure arrangements.

Types of information that could be included in response to this question include: how your organisation will ensure care recipients’ rights are protected in line with legislative requirements; details of any communication strategies that you will implement; examples of how you will ensure care recipients’ rights are protected, and adequate information is provided

to them about their care and services; information about how any existing accommodation bonds (as well as any new lump sum accommodation

payments that will be payable by care recipients entering care on or after 1 July 2014) will be protected and used in accordance with the legislation; and

how you will ensure that care recipients entering residential aged care on or after 1 July 2014 are provided with adequate information about the new fee and accommodation payment arrangements that will take effect from 1 July 2014.



PART 7: FINANCIAL INFORMATION

Financial information underpins a number of the 2014 ACAR assessment criteria including continuity of care for current and future care recipients, measures to protect the rights of care recipients (particularly in relation to lump sum accommodation payments) and, for services where refurbishment or new construction is required, making places operational in a timely manner.

Any allocation of places does not imply that the Australian Government guarantees the viability of your service or of your organisation. Applicants MUST make their own assessment as to the viability of their operations and of the adequacy of capital funding arrangements. At the earliest opportunity you should notify the Department of any change in your circumstances that will significantly affect your capacity to finance your proposal.

The Department may use financial information for an independent analysis to assist in determining your: financial viability; ability to deliver care in the long term; ability to complete any capital works relevant to the application; and organisational viability and sustainability.

If the independent analyst wishes to clarify any financial information, your authorised contact person(s) will be contacted by an officer of the Department. Any request for clarification is to allow consideration of your application and should not be taken as an indication of the likely outcome of your application.

There is no requirement for the Department to clarify any information and seeking clarification does not mean that further information will be sought. The onus is on you to provide sufficient information in your application, and supporting documentation, to allow the Department to determine the robustness of your financial situation.


APPROVED PROVIDER/APPLICANT ORGANISATION

7.1 Statement of Organisational Financial Position and Projections

AssetsImportant points to note: the projections are for the whole of your organisation, not just for your residential aged care activities or for

the service(s) that is/are the subject of this application; assets should be stated at their “book” or accounting value which is consistent with how they are stated in

the audited financial statements; use the ‘Residents’ row to show receivables from residents or residents’ debts; current Assets are assets that can be realised into cash within the twelve months following the balance

date. Assets that are unlikely to be realised as cash in twelve months should be shown as Non-Current Assets; and

some assets may have both current and non-current elements; for example, receivables may be split into an amount expected within 12 months of the balance date (current) and an amount expected more than 12 months after the balance date (non-current).

In your response you should detail your organisation’s projected assets at the following points in time: Column A - the forecast situation as at 30 June 2014; Column B - the forecast situation immediately after the places are operational; and Column C - the forecast situation when maximum occupancy is achieved.

Your response should: include asset values normally reflected in your audited financial statements for items such as goodwill,

value of places etc; where intangible assets include an amount relating to places, please provide details of the number of

places and the estimated value per place; detail any restrictions or covenants relating to the use of any of the assets included in the projections for

residential aged care activities; for example, if the Statement of Financial Position (Balance Sheet) projections include assets for land

and investments which, by virtue of the conditions of a bequest must be dedicated to the future building of independent living units or are held by a financial institution as security for borrowings, they are not available for residential aged care activities; and

details, including the value included in the projections for each of these assets and the expiry date of any restrictions or covenants, should be noted.

If you have answered ‘Other’, you will need to provide an explanation. You may also provide any other explanatory information that you wish.

The word limit for this part of the question is 150 words.


LiabilitiesRefer to the instructions given in relation to ‘Assets’ above.

Current liabilities should include all liabilities that are likely to fall due or be repaid within the 12 months following the balance date. Liabilities that are likely to fall due after 12 months should be shown as Non-Current Liabilities; for example, the portion of accommodation bonds and other resident liabilities that are likely to be paid out in the 12 months following the balance date should be shown as a Current Liability. The portion of these liabilities that is unlikely to be repaid within the 12 months should be shown as a Non-Current Liability.

When determining the Current versus Non-Current portions of accommodation bonds and similar liabilities you should have regard to the anticipated turnover of residents. For example, if you expect that 25% of your residents are likely to leave in the next 12 months and will require their lump sum accommodation payments to be repaid then 25% of the total liability should be shown as a Current Liability: use the ‘Other’ row to show debts to residents other than accommodation bonds, refundable

accommodation deposits and refundable accommodation contributions; the projections for cash and bank accounts and investments should be determined from the approved

provider/applicant organisation’s forward cash flow projections; and the projections for receivables, land and buildings and plant and equipment should be determined from the

expected movement in these items and their effect on the forward cash flow projections.

If relevant, the projections for a bank overdraft should be determined from your organisation’s forward cash flow projections and the projections for creditors and accruals, employee entitlements and debt/loans should be determined from the expected movement in these items and their effect on the forward cash flow projections.

Other liabilitiesIf you have answered ‘Other’, in this section, you will need to provide an explanation. You may also provide any other explanatory information that you wish.


Other changes in equityIf you have answered ‘Other’, in relation to changes in equity, describe the nature of the transaction(s) and why it is not included in the operating surplus (deficit), contributed capital or dividend payments.



SERVICE LEVEL

7.2 Operating surplus (deficit) – projections for the residential aged care service.Provide the relevant figures against each year in respect of your organisation.

D o not include information relating to non-residential aged care activities, such as, home and/or flexible aged care places, acute care, independent living units or include any debt payments in row A.

The calculation of your organisation's operating surplus or deficit before depreciation and interest payments should take into account the following items but may include other items that are normally included in the accounts for your organisation:

Income Department of Social Services subsidies; resident fees (total annual resident fees charged, including any daily (ie non-lump sum) accommodation

payments); earnings from accommodation bonds, refundable accommodation deposits and refundable accommodation

contributions (total annual interest earned and any retention amounts from accommodation bonds only); state/territory government subsidies; and other income/subsidies (annual income from all other sources including donations and bequests either from

external sources or related entities). Include any income generated through investments of donations/bequests.

Expenditure wages; workers’ compensation; catering, cleaning and laundry; utilities (for example: electricity, fuel, water, sewerage and waste removal, including rates); rent (annual rental cost for the service); property and maintenance; and other expenses.

B – Less depreciation on buildings

C – Less depreciation on plant and equipment

D – Zero Real Interest Loan interest payments (equal to CPI)—if applicable: Detail any interest payments (equal to CPI) relating to existing zero real interest loans.

E – Less Other debt interest payments: Detail all other payments of interest relating to debt.

F - Operating surplus (deficit) AFTER depreciation and debt interest payments: Row F should equal the total of row A, minus row B, minus row C, minus row D, minus row E. Do not include debt principal repayments.

G – Less Zero Real Interest Loan principal repayments: Detail any principal repayments relating to existing zero real interest loans.

H – Less other debt principal repayments: Detail any other annual debt principal repayments.

I – Add back: Depreciation on buildings

J – Add back: Depreciation on plant and equipment

K – Less: New capital expenditure: Detail any additional capital expenditure, asset additions that will not be financed through new leases, hire purchases or loans.


L – NET Accommodation bonds, refundable accommodation deposits and refundable accommodation contributions: Include the net cash inflow (outflow) only – gross cash inflows less payouts, for the relevant periods.

M – Cash surplus (deficit): Row M should equal the total of row F, minus row G, minus row H, plus row I, plus row J, minus row K, plus or minus row L.

N – Total number of operational places: The number of places includes those being sought in the 2014 ACAR. Detail the total number of places expected to be operational against each year, including any new places you are seeking in the 2014 ACAR.

O – Total number of provisional places: Detail the total number of places that have already been provisionally allocated (that is, not yet operational) against each year.

P – Total number of places: Row P should equal the total number of row N, plus row O.

7.3 Advise of any significant changes in your operating results.If you are projecting significant changes in operating results per resident, describe the detailed assumptions underpinning this changed result.


7.4 Advise how your organisation will fund any operating deficit.If the projections for your organisation show an operating deficit in any year, describe how your organisation intends to fund this deficit.


7.5 Service overview.This question relates to the residential aged care service in which you are seeking residential aged care places. Do not include information relating to any non-residential care activities of the service, such as, the provision of home and/or flexible aged care places, acute care, or independent living units.

Provide full year actual or estimated results for each of the four years but leave 2013-14 information blank if there is no existing service. The first of the four years should be the financial year in which any proposed capital works are completed; indicate the relevant year at the top of each column.

A - Number of allocated places: Record the total number of places, including operational places, off-line places and provisionally allocated places.

B - Number of unfunded places: Record the number of places available for which Australian Government residential aged care subsidies are not received.

C - Total places (C = A + B)

D - Total residents

E - Occupancy rate (%): Record the average occupancy rate, that is, the total number of occupied bed days per year/total number of possible bed days per year, expressed as a percentage.

F - Number of residents paying accommodation bonds, refundable accommodation deposits and refundable accommodation contributions


G – Total collected from accommodation bonds, refundable accommodation deposits and refundable accommodation contributions ($)

H - Liability for accommodation bonds, refundable accommodation deposits and refundable accommodation contributions ($): Record the total amount owing to residents at the end of the year after deducting allowable deductions.

I - Reserve funds for the service ($): Record all funds held in reserve to meet, for example known liabilities, unexpected expenditure requirements or to support future service or capital improvements. Do not include accommodation bonds, refundable accommodation deposits and refundable accommodation contributions. Write “none allocated to service” if there are no reserves allocated specifically to this service, for example, if organisational reserves are held by your organisation but applied to a range of services or activities.

7.6 Assumptions underlying the projections.Provide information on the assumptions underlying your projections. You should outline assumptions about number of residents paying refundable accommodation payments or refundable accommodation contributions, the value of accommodation payments and contributions, and resident turnover.


7.7 Required attachments.Failure to provide the required attachments may adversely impact on an assessment of your financial viability; your ability to deliver care in the long-term; your ability to complete any capital works relevant to your proposal; and/or your organisational viability and sustainability and may, overall, make your application less competitive.

You must attach audited 2012-13 financial reports, including any notes and/or auditor’s opinions.


PART 8: ENDORSEMENT OF APPLICATION

This application can be signed only by those persons who are legally empowered to give assurances and enter into contracts and commitments on behalf of the applicant.

In signing this endorsement, you are affirming that this proposal has the full consent and support of your organisation’s Board of Directors, or other relevant authority.

Giving false or misleading information is a serious offence.

There are offences established by the Aged Care Act 1997 and the Criminal Code Act 1995 relating to providing false and misleading information. Approvals based on false or misleading information may be revoked.

In endorsing the application you are confirming that you: have included all relevant evidence; are aware of your responsibilities as prescribed in the Aged Care Act 1997 and the Aged Care Principles; have read the 2014 ACAR Essential Guide; declare that all information provided in the application and associated attachments is true and complete; declare that all the key personnel in the applicant organisation are, and will continue to be, suitable to

provide aged care and are not disqualified individuals; consent to the Secretary of the Department of Social Services providing relevant information to other

persons or organisations, in order to obtain their advice, as necessary, to assist in assessing this application or in assessing other applications submitted by the applicant in the 2014 ACAR; and

consent to any persons or organisations that are contacted releasing information to the Department of Social Services.

Your organisation’s company seal and citation is required only if your organisation is an incorporated company and the company is required by its constitution to seal such documents.

Receipt of applicationA receipt will be sent to the email address provided in Part 1, Question 1.3, after the specified closing date for the lodgement of applications. If you do not complete this section a receipt will not be issued.


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