GLOSSARY

Term
Meaning

(the) Act

The National Health Reform Act 2011.
activity based funding A system for funding public hospital services based on the actual number of services provided to patients and the efficient cost of delivering those services. Activity based funding uses national classifications, cost weights and nationally efficient prices to determine the amount of funding for each activity or service.
(the) Administrator The Administrator of the National Health Funding Pool (the Administrator) is an independent statutory office holder, distinct from Commonwealth and state and territory government departments, established under legislation of the Commonwealth and state and territory governments.

The role of the Administrator, with support from the National Health Funding Body, is to administer the payment of public hospital funding according to the National Health Reform Agreement, and to oversee payments into and out of the State pool account for each state and territory, collectively known as the National Health Funding Pool (the Funding Pool).

(the) Agreement See National Health Reform Agreement.
AHMAC Australian Health Ministers’ Advisory Council.
block funding A system of funding public hospital functions and services as a fixed amount based on population and previous funding.

Under National Health Reform, block funding will be provided to states and territories to support teaching and research undertaken in public hospitals and for some public hospital services where it is more appropriate, particularly smaller rural and regional hospitals.

CEO Chief Executive Officer.
CFO Chief Finance Officer.
Council of Australian Governments (COAG) The peak intergovernmental forum in Australia. The members of COAG are the Prime Minister, state and territory Premiers and Chief Ministers and the President of the Australian Local Government Association.
COAG Health Council Previously known as Standing Council on Health (SCoH).
DoHA The (former) Department of Health and Ageing.
FMA Act The Financial Management and Accountability Act 1997. This Act provided a framework for the proper management of public money and public property.
(the) Funding Pool See ‘National Health Funding Pool’.
Independent Hospital Pricing Authority (IHPA) An independent statutory body established under Commonwealth legislation to calculate and deliver an annual National Efficient Price (NEP) used in the calculation of national activity based funding for Australian public hospitals.
JAC Administrator’s Jurisdictional Advisory Committee.
Jurisdiction Refers to the Commonwealth or a state or territory.
Local hospital networks (LHNs) Recipients of the payments from the National Health Funding Pool, Commonwealth block funding and state managed funds.
Medicare Benefits Schedule (MBS) A listing of the Medicare services subsidised by the Australian Government.
National Health Funding Body (NHFB) An independent statutory body established under Commonwealth legislation to assist the Administrator in carrying out his or her functions under Commonwealth, state and territory legislation.
National Health Funding Pool (the Funding Pool) A collective name for the state pool accounts of all states and territories, also known as the ‘the Funding Pool’. The Pool was established under Commonwealth and state and territory legislation for the purpose of receiving all Commonwealth and activity based state and territory public hospital funding, and for making payments under the Agreement.
National Health Performance Authority (NHPA) An independent statutory authority established under Commonwealth legislation to report on the performance of hospitals and primary health care organisations across Australia.
National health reform National health reform includes reforms to the way in which public hospitals are funded nationally in Australia, as set out in the National Health Reform Agreement entered into by all states, territories and the Commonwealth in August 2011.
National Health Reform Agreement (the Agreement) The National Health Reform Agreement outlines the funding, governance, and performance arrangements for the delivery of public hospital services in Australia.the Agreement was entered into by all states, territories and the Commonwealth in August 2011.
Payments System (the) the Administrator’s Payments System processes the national health reform Commonwealth, state/territory deposits and payments into and out of the Pool, as required under the Act.
Pharmaceutical Benefits Scheme (PBS) Details of the medicines subsidised by the Australian Government.
PGPA Act Public Governance, Performance and Accountability Act 2013. This act replaced the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 from 1 July 2014.
RAG Reconciliation Advisory Group.
state managed fund A separate bank account or fund established by a state or territory for the purposes of health funding under the Agreement which must be undertaken in the state or territory through a state managed fund.
state pool account A Reserve Bank account established by a state or territory for the purpose of receiving all Commonwealth and activity based state and territory public hospital funding, and for making payments under the Agreement. The state pool accounts of all states and territories are collectively known as the National Health Funding Pool or the Pool.

DISCLOSURE INDEX

PART OF REPORT DESCRIPTION REQUIREMENT LOCATION

LETTER OF TRANSMITTAL

Letter of transmittal Mandatory Page iv

AIDS TO ACCESS

Table of contents Mandatory Page 1
Alphabetical index Mandatory Pages 104–110
Glossary of abbreviations and acronyms Mandatory Pages 96–97
List of requirements Mandatory Pages 98–103
Details of contact officer Mandatory Inside front cover
Agency website address Mandatory Inside front cover
Electronic address for report Mandatory Inside front cover

REVIEW BY CEO

Review by CEO Mandatory Pages 4–5

OVERVIEW OF AGENCY

Role and functions Mandatory Pages 8–13
Organisational structure Mandatory Page 14
Outcome and programme structure Mandatory Pages 18, 20
Purpose of the agency Mandatory Page 52
Portfolio structure Portfolio departments — mandatory N/A
Where outcome and programme structures differ from PBS/PAES or other portfolio estimates statement that was prepared for the agency for the period, details of variation and reasons for change If applicable, Mandatory N/A

REPORT ON PERFORMANCE

Annual Performance Statements Annual performance statement in accordance with paragraph 39(1)(b) of the PGPA Act and section 16F of the PGPA Rule Mandatory Pages 52–59
Report on Financial Performance Discussion and analysis of the agency’s financial performance Mandatory Pages 60–61
Agency resource and payments summary Mandatory Page 61
If there may be significant changes in the financial results during or after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the agency; how the agency has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the agency’s future operation or financial results. If applicable, Mandatory Page 60

MANAGEMENT AND ACCOUNTABILITY

Corporate Governance Information on compliance with section 10 (fraud systems) Mandatory Page 39
Certification by CEO that fraud risk assessments and fraud control plans have been prepared Mandatory Page 39
Certification by CEO that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the agency are in place Mandatory Pages 20, 39
Certification by CEO that all reasonable measures have been taken to deal appropriately with fraud relating to the agency Mandatory Pages 20, 39
Outline of structures and processes in place for the agency to implement principles and objectives of corporate governance Mandatory Pages 37–38
Statement of significant issues reported to Minister under paragraph 19(1)(e) of the Act that relates to non–compliance with Finance law and action taken to remedy non compliance If applicable, Mandatory N/A
External Scrutiny Significant developments in external scrutiny and the agency’s response to the scrutiny Mandatory Pages
20, 38–39
Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner If applicable, Mandatory N/A
Reports on operations of the agency by the Auditor–General, a Parliamentary Committee, or the Commonwealth Ombudsman If applicable, Mandatory Pages
65–66
Capability reviews on the agency If applicable, Mandatory N/A
Management of Human Resources Assessment of the agency’s effectiveness in managing and developing employees to achieve agency objectives Mandatory Pages 44–48
Statistics on the agency’s APS employees on an ongoing and non–ongoing basis; including the following:

  • Statistics on staffing classification level;
  • Statistics on full–time employees;
  • Statistics on part–time employees;
  • Statistics on gender;
  • Statistics on staff location;
  • Statistics on employees who identify as Indigenous
Mandatory Pages 44–46
Enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999 Mandatory Page 47
Number of SES and
non–SES employees
Mandatory Pages 45–46
Salary ranges available for APS employees by classification level Mandatory Page 47
Non–salary benefits provided to employees Mandatory Pages 48–49
Performance pay; including:

  • number of employees at each classification level who received performance pay
  • aggregate amounts of performance pay at each classification level
  • average amount of performance payment, and range of such payments, at each classification level
  • aggregate amount of performance payments
If applicable, Mandatory N/A
Assets Management Assessment of effectiveness of assets management If applicable, Mandatory Page 40
Purchasing Assessment of agency performance against the Commonwealth Procurement Rules Mandatory Page 40
Consultants A summary statement detailing the number of new and ongoing contracts engaging consultants, including actual expenditure Mandatory N/A
A statement of new and ongoing contracts Mandatory Page 40
A summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged Mandatory N/A
A statement regarding expenditure reporting in Annual Reports Mandatory Page 40
Australian National Audit Office Absence of provisions in contracts allowing access by the Auditor–General If applicable, Mandatory Page 40
Exempt contracts Contracts exempt from AusTender If applicable, Mandatory Page 40
Small business Statement of support for small and medium enterprise (SME) participation in Commonwealth Government procurement Mandatory Page 40
Procurement practices of the agency that support SMEs Mandatory Page 40
If agency is considered material in nature, statement of importance of timely payment to SMEs If applicable, Mandatory N/A
Financial Statements Annual financial statements Mandatory Pages 68–71

OTHER MANDATORY INFORMATION

If the agency conducted advertising campaigns, a statement detailing the advertising campaign(s) If applicable, Mandatory N/A
If the agency did not conduct advertising campaigns, a statement to that effect If applicable, Mandatory Page 40
A statement regarding grants awarded to the agency If applicable, Mandatory Page 41
Outline of mechanisms of disability reporting, including reference to website for further information Mandatory Page 41
Website reference to where the agency’s Information Publication Scheme statement pursuant to Part II of FOI Act can be found Mandatory Page 41
Correction of material errors in previous annual report If applicable, Mandatory N/A
Information required by other legislation Mandatory Pages 40–41

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ISSN 2206-0901 (PRINT)
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© Commonwealth of Australia 2016
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This work is copyright. You may download, display, print and reproduce the whole or part of this work in unaltered form for your own personal use or, if you are part of an organisation, for internal use within your organisation, but only if you or your organisation do not use the reproduction for any commercial purpose and retain this copyright notice and all disclaimer notices as part of that reproduction. Requests and inquiries concerning reproduction and rights are to be sent to the Chief Executive Officer of the National Health Funding Body, GPO Box 1252, Canberra ACT 2601, or via email to nhfb.enquiries@nhfb.gov.au.