This Appendix sets out the financial indicators used in this report. The indicators should be considered collectively and are more useful when assessed over time, as part of a trend analysis. The indicators have been applied to the published financial information of the 87 public hospitals for the five-year period 2008–09 to 2012–13.
The principal legislation governing financial reporting by public hospitals are the Financial Management Act 1994 and the Corporations Act 2001.
Figure C1 sets out the legislative framework for each type of entity within the public hospital sector.
Figure C1
Legislative framework for public hospitals and associated entities
Audit type |
Financial report | |||||
|---|---|---|---|---|---|---|
Figure
A1
VAGO reports on the results of the 2012–13 financial audits
Report |
Description |
|---|---|
Auditor-General's Report on the Annual Financial Report of the State of Victoria, 2012–13 |
This Part presents the results of our assessment of general internal controls, risk management and controls over private patient revenue at public hospitals.
Some rural hospitals put at risk the accuracy of financial reporting and increase their exposure to fraud because of inadequate controls over key account reconciliations and changes to masterfiles.
To be financially sustainable, entities need to be able to meet current and future expenditure as it falls due. They also need to absorb foreseeable changes and risks without significantly changing their revenue and expenditure policies.
This Part provides an insight into the financial sustainability of the 87 public hospitals based on an analysis of the trends in their key financial indicators over the past five years.
This Part covers the results of the 2012–13 audits of the 87 public hospitals and their 25 associated entities. It also compares financial reporting practices in 2012–13 against better practice.
Public hospitals provide a range of services across metropolitan, regional and rural areas. Metropolitan and regional public hospitals typically provide acute health services, as well as a mix of mental health, subacute, community health and aged care services. Rural public hospitals generally offer a higher proportion of aged care and community health services.
The Victorian public hospital sector consists of 112 entities—comprising 87 public hospitals and 25 associated entities. The 112 entities provide a range of public health services across metropolitan, regional and rural Victoria.
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER March 2013
PP No 282, Session 2010–13