Building for a brighter future - GHA Central

Financial: Overview
The Group achieved a modest net
surplus of $310,000 after inclusion of
capital, depreciation and amortisation.
Given that activity targets for many
services were surpassed, this
demonstrates the strong commitment
to the delivery of health care services
to the community within the context
limited resources.
The acute program again exceeded
activity targets, resulting in an
additional $123,420 of expenditure
and reported an overall operating
loss of $1,003,000 (see notes 2a and
2b in financial statements). The Group’s
various business initiatives continue
to play a key role in the delivery of
financial sustainable health care
services.
The Warragul Linen Service reported
a profit of $465,000, however this year
inter-segment transactions and interest
income has been excluded to comply
with reporting changes (refer page 66).
The result is down on last year’s profit
of $655,000 due to contract renegotiations
with a key customer
and increased staffing costs.
Continued community support in the
form of donations and service in kind,
plays a significant role in the upgrading
and replacement of medical equipment,
which enhances the effectiveness and
delivery of our health care services.
This graphs shows the ratio of assets
funded by the Group and the assets
currently funded by borrowings. The graph
indicates the group continues to maintain
ownership of around 70% for every dollar
of assets held.
The Finance Department team ((L-R) Ildiko McCann, Marie Womersley, Dianne Grbic,
Darren Warwick, Colleen Lacorcia, Justin Walsh and Catriona Duncanson.
The Quick Asset Ratio graph, right, indicates
the Group’s ability to meet its financial
commitments during the next 60 days.
The Current Ratio graph indicates the Group’s
ability to meet its financial commitments during
the next twelve months. The current year ratio
and prior year comparative have declined due
to the A-IFRS requirement to disclose the
presently entitled portion of the long service
leave liability as a current liability. The current
year ratio also reflects the decline in cash
largely as a result of Stage III Redevelopment
being funded by the Group.
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
2006
Equity/Assets - Viability
0.72
0.71
2005
0.73
2004
0.71
2003
5 Year Financial Comparison
0.75
2002
2.5
2.0
1.5
1.0
0.5
0.0
2.5
2.0
1.5
1.0
0.5
0.0
Quick Asset Ratio - Liquidity
1.04
2006
1.04
2006
1.16
2005
1.13
2005
1.73
2004
Current Ratio - Solvency
1.63
2004
1.68
2003
1.62
2003
1.58
2002
1.65
2002
2006 2005 2004 2003 2002
$000 $000 $000 $000 $000
Total Revenue 54,954 53,683 52,343 48,083 43,212
Total Expenditure 54,644 51,694 49,733 46,808 43,144
Operating Surplus 310 1,989 2,570 1,275 68
RetainedSurplus 6,867 6,557 4,568 1,998 723
Total Assets 51,745 50,823 44,582 41,838 38,155
Total Liabilities14,248 14,977 12,125 11,952 9,449
Net Assets 37,497 35,846 32,457 29,886 28,706
Total Equity 37,497 35,846 32,456 29,886 28,706
The Group recorded a surplus of $310,010 against a budgeted deficit of $902,565. The favourable variance is due
largely to the receipt of capital works project grants, primary health funding (the expenditure to which is yet to be
spent) and continued support from the community by way of donations.
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