ANNUAL REPORT - Northern Health

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Note 20: Financial Instruments (continued) Notes To and Forming Part of the Financial Statements Northern Health Annual Report 2009/2010 (e) Market Risk Northern Health's exposures to market risk are primarily through interest rate risk with only insignificant exposure to foreign currency and other price risks. Objectives, policies and processes used to manage each of these risks are disclosed in the paragraph below. Currency Risk Northern Health is exposed to insignificant foreign currency risk through its payables relating to purchases of supplies and consumables from overseas. This is because of a limited amount of purchases denominated in foreign currencies and a short timeframe between commitment and settlement. Interest Rate Risk Exposure to interest rate risk might arise primarily through Northern Health's interest bearing liabilities. Minimisation of risk is achieved by mainly undertaking fixed rate or non-interest bearing financial instruments. For financial liabilities, Northern Health mainly undertake financial liabilities with relatively even maturity profiles. Other Price Risk Northern Health's exposure to 'Other Price Risk' arises from its current investment portfolio. The investment portfolio has experienced a reduction in value due to the volatility of the global financial markets and there is an increasing expectation that due to the nature of these investments that the original face value may not be realised on maturity. As a consequence of these events, Northern Health has taken all possible steps to strengthen its financial policies and internal controls relating to the investment of surplus funds. Interest Rate Exposure of Financial Assets and Liabilities as at 30 June Weighted Carrying Average Amount Fixed Variable Non- Effective Interest Interest Interest Interest Rate Rate Bearing 2010 Rate (%) $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents 3.23 1,382 - 1,349 33 Recievables (i) - Trade debtors 0.00 2,104 - - 2,104 - Other receivables 0.00 3,216 - - 3,216 Other financial assets - Available for sale 4.33 - - - - 6,702 - 1,349 5,353 Financial Liabilities Payables (i) 0.00 19,347 - - 19,347 Interest Bearing Liabilities 3.80 855 - 855 - Other financial liabilities 0.00 5 - - 5 20,207 - 855 19,352 2009 Financial Assets Cash and Cash Equivalents 4.59 4,361 - 4,328 33 Recievables (i) - Trade debtors 0.00 3,434 - - 3,434 - Other receivables 0.00 2,492 - - 2,492 Other financial assets - Available for sale 7.39 1,440 - 1,440 - 11,727 - 5,768 5,959 Financial Liabilities Payables (i) 0.00 24,810 - - 24,810 Interest Bearing Liabilities 3.80 891 - 891 - Other financial liabilities 0.00 8 - - 8 25,709 - 891 24,818 (i) The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable) Interest Rate Exposure Northern Health Financial Report Appendix to the 2009 - 2010 Annual Report Page 42 of 52
Note 20: Financial Instruments (continued) Notes To and Forming Part of the Financial Statements Northern Health Annual Report 2009/2010 (e) Market Risk (cont) Sensitivity Disclosure Analysis Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Northern Health believes the following movements are 'reasonably possible' over the next 12 months (Base rates are sourced from the Reserve Bank of Australia) - A shift of +1% and -1% in market interest rates (AUD) from year-end rates of 4.1%; - A parallel shift of +1% and 1% in inflation rate from year-end rates of 2% The following table discloses the impact on net operating result and equity for each category of financial instrument held by Northern Health at year end as presented to key management personnel, if changes in the relevant risk occur. Carrying Amount -1% Interest Rate Risk Other Price Risk +1% -5% +10% Profit Equity Profit Equity Profit Equity Profit Equity 2010 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Financial Assets Cash and Cash Equivalents (i) 1,382 (14) (14) 14 14 - - - - Receivables - Trade debtors 2,104 - - - - - - - - - Other receivables 3,216 - - - - - - - - Other financial assets - Available for sale - - - - - - - - - Financial Liabilities Payables 19,347 - - - - - - - - Interest Bearing Liabilities 855 9 9 (9) (9) - - - - Other Financial Liabilities 5 - - - - - - - - (5) (5) 5 5 - - - - 2009 Financial Assets Cash and Cash Equivalents (i) 4,361 (44) (44) 44 44 - - - - Receivables - Trade debtors 3,434 - - - - - - - - - Other receivables 2,492 - - - - - - - - Other financial assets - Available for sale 1,440 (14) (14) 14 14 (72) (72) 144 144 Financial Liabilities Payables 24,810 - - - - - - - - Interest Bearing Liabilities 891 9 9 (9) (9) - - - - Other Financial Liabilities 8 - - - - (49) (49) 49 49 (72) (72) 144 144 (i) eg. Sensitivity of cash and cash equivalents to a +1% movement in interest rates: [$1,349k*0.051]-[$1,349k*0.041] = $14k. Similar for a -1% movement in interest rate, impact = $(14k) The carrying amount excludes statutory financial assets and liabilities (i.e. GST input tax credit and GST payable) Northern Health Financial Report Appendix to the 2009 - 2010 Annual Report Page 43 of 52
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09/10 ANNUAL REPORT Broadmeadows He
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Annual Report 02 Chair’s Report 0
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It has been a privilege to serve th
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Northern Health was first to fully
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Mr Stephen Black Stephen Black has
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Corporate Governance Appointment of
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Quality Committee Ms Sabine Phillip
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Executive Team Mr Greg Pullen, Chie
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Organisation Structure Northern Hea
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Admitted Patients & Emergency $207.
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Other Services $30.9m Finance Servi
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Enhanced Recovery After Surgery (ER
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Strategic Goal 2 A healthier northe
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ased systems which in turn have red
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are now represented as patients in
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demonstrate the importance of colla
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of health status in older patients
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Statement of Priorities Strategic P
Page 37 and 38: Activity and Funding Activity and F
Page 39 and 40: Freedom of Information 710 Freedom
Page 41 and 42: 2009/10 2008/09 000’s 000’s Rev
Page 43 and 44: FRD 22B Workforce Data Disclosures
Page 45 and 46: Northern Health Financial Statement
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Page 53 and 54: Note 1: Statement of Significant Ac
Page 63 and 64: Note 2: Revenue Notes To and Formin
Page 65 and 66: Note 2a: Analysis of Revenue by Sou
Page 67 and 68: Note 2b: Patient and Resident Fees
Page 69 and 70: Note 3: Expenses (Continued) Notes
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Page 73 and 74: Note 7: Receivables Notes To and Fo
Page 75 and 76: Note 9: Inventories Notes To and Fo
Page 77 and 78: Note 12: Property, Plant & Equipmen
Page 79 and 80: Note 14: Payables Notes To and Form
Page 81 and 82: Note 16: Employee Benefits and Rela
Page 83 and 84: Note 18: Equity (a) Reserves Proper
Page 85 and 86: Note 20: Financial Instruments Note
Page 87: Note 20: Financial Instruments (con
Page 91 and 92: Note 22: Contingent Assets and Cont
Page 93 and 94: Note 24b: Executive Officer Disclos
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Page 97 and 98: THIS PAGE HAS BEEN INTENTIONALLY LE
Page 100: Broadmeadows Health Service 35 John
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ANNUAL REPORT - Northern Health

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