Appendix 1

GUIDE TO FIGURES IN ANNUAL REPORT

FRONT COVER AND PAGE III HIGHLIGHTS

Source: Administrator National Health Funding Pool 2016–17 Annual Report, Funding and Payments

Funding
National
$ billion

Commonwealth funding1

Section 241(2)B (page 51): Total amount paid by Commonwealth into State Pool Account in 2016–17

18.6

State funding receipted into state pool account1

Section 241(2)A (page 50): State Pool Account — ABF 2016–17

21.5

State funding receipted into state managed fund

Section 241(2)A (page 50): State Managed Fund — Block 2016–17

4.0

Total funding2

Commonwealth funding + State funding

44.1

Payments
National
$ billion

Activity Based Funding1

Section 241(2)C (page 53): Amount paid from State Pool Account to Local Hospital Networks in 2016–17

37.2

Block Funding from State Pool Accounts1

Section 241(2)C (page 53): Amount paid from State Pool Account to State Managed Fund in 2016–17

2.2

Block Funding from State Managed Funds

Section 241(2)A (page 50): Amount paid by State/Territory to State Managed Fund — Block in 2016–17

4.0

Payments to Australian public hospitals2

Activity Based Funding + Block Funding

43.4

1 Data can also be sourced from the Combined State Pool Account Financial Statement or respective State or Territory State Pool Account Financial Statement for the year ended 30 June 2017.

2 Totals may not equal the sum of components due to rounding.

Acronyms

ACRONYM
MEANING

ABF

Activity Based Funding

AHMAC

Australian Health Ministers’ Advisory Council

ANAO

Australian National Audit Office

APS

Australian Public Service

APSC

Australian Public Service Commission

CCM

Commonwealth Contribution Model

CEO

Chief Executive Officer

CFO

Chief Financial Officer

CFO/RAG

Chief Finance Officers and Reconciliation Advisory Group Committee

COAG

Council of Australian Governments

FOI Act

Freedom of Information Act

HAC

Hospital Acquired Complication

HOPO

Holder of Public Office

IHPA

Independent Hospital Pricing Authority

JAC

Jurisdictional Advisory Committee

LHN

Local Hospital Network

MBS

Medicare Benefits Schedule

NHFB

National Health Funding Body

NHIPPC

National Health Information and Performance Principal Committee

NHISSC

National Health Information Standards and Statistics Committee

NHR

National Health Reform

NHR Act 2011

National Health Reform Act 2011

NWAU

National Weighted Activity Unit

PBS

Portfolio Budget Statements

PGPA Act

Public Governance, Performance and Accountability Act 2013

SES

Senior Executive Service

SME

Small and Medium Enterprise

Glossary

TERM
MEANING

(the) Act

TheNational Health Reform Act 2011.

Activity Based Funding

Refers to a system for funding public hospital services provided to individual patients using national classifications, cost weights and nationally efficient prices developed by the Independent Hospital Pricing Authority. Funding is based on the actual number of services provided to patients and the efficient cost of delivering those services.

(the) Addendum

The Addendum to the National Health Reform Agreement entered into by all states, territories and the Commonwealth in 2017, included as Schedule I to the Agreement.

The Addendum sets out additional reforms to the way in which public hospitals are funded nationally.

(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 NHFB, 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) Agreement

SeeNational Health Reform Agreement.

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.

COAG Health Council

Previously known as Standing Council on Health (SCoH).

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.

(the) Funding Pool

See National Health Funding Pool.

Independent Hospital Pricing Authority

An independent statutory body established under Commonwealth legislation to calculate and deliver an annual National Efficient Price used in the calculation of national Activity Based Funding for Australian public hospitals.

Local hospital networks

Recipients of the payments from the National Health Funding Pool, Commonwealth block funding and state managed funds.

National Funding Cap

The limit in growth in Commonwealth funding for Public Hospital Services for all States of 6.5 per cent per annum and where the context so requires includes the operation of the Funding Cap as provided in this Agreement.

National Health Funding Administrator Payments System (Payments System)

The Administrator’s Payments System processes the national health reform Commonwealth, state/territory deposits and payments into and out of the National Health Funding Pool, as required under the Act.

National Health Funding Body

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. The National Health Funding 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 reform

National health reform includes reforms to the way in which public hospitals are funded nationally in Australia, as set out in theNational Health Reform Agreement entered into by all states, territories and the Commonwealth in August 2011.

National Health Reform Agreement (the Agreement)

TheNational 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.

National Weighted Activity Unit (NWAU)

The NWAU is a measure of health service activity expressed as a common unit, against which the National Efficient Price is paid. It provides a way of comparing and valuing each public hospital service (whether it is an admission, emergency department presentation or outpatient episode), by weighting it for clinical complexity.

Public Governance, Performance and Accountability Act (PGPA Act)

Public Governance, Performance and Accountability Act 2013. This act replaced theFinancial Management and Accountability Act 1997 and theCommonwealth Authorities and Companies Act 1997 from 1 July 2014.

Public Health funding

Public Health funding covers amounts previously relating to national public health, youth health services and essential vaccines (service delivery) in 2008–09 ($244.0 million).

Reconciliation

The Reconciliation of actual ABF Service delivery volume undertaken within a State to the estimate of ABF Service delivery volumes provided by a State.

Safety and Quality adjustment

A reduction in funding payable to a State by the Commonwealth for Public Hospital Services, funded either under ABF or Block Funding, following the occurrence of a Hospital Acquired Complication or an Avoidable Hospital Readmission in accordance with the pricing and funding models to be developed by the Parties for this purpose.

Soft Cap

The limit in growth in Commonwealth funding for Public Hospital Services in a State of 6.5 per cent per annum.

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.

Disclosure Index

PART OF REPORT
DESCRIPTION
REQUIREMENT
LOCATION

LETTER OF TRANSMITTAL

Letter of transmittal

Mandatory

IV

AIDS TO ACCESS

Table of contents

Mandatory

1

Alphabetical index

Mandatory

108–118

Glossary of abbreviations and acronyms

Mandatory

99–102

List of requirements

Mandatory

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

2–3

OVERVIEW OF AGENCY

Role and functions

Mandatory

2

Organisational structure

Mandatory

9, 11, 60

Outcome and programme structure

Mandatory

15

Purpose of the agency

Mandatory

14

Portfolio structure

Portfolio departments — mandatory

N/A

Where outcome and programme structures differ from Portfolio Budget Statement/Portfolio Additional Estimates Statements 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

14

Report on Financial Performance

Discussion and analysis of the agency’s financial performance

Mandatory

2–3, 16–17, 73–95

Table summarising agency resource and payments

Mandatory

16–17

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

75, 95

MANAGEMENT AND ACCOUNTABILITY

Corporate Governance

Information on compliance with section 10 (fraud systems)

Mandatory

48, 65

Certification by CEO that fraud risk assessments and fraud control plans have been prepared

Mandatory

65

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

65

Certification by CEO that all reasonable measures have been taken to deal appropriately with fraud relating to the agency

Mandatory

65

Outline of structures and processes in place for the agency to implement principles and objectives of corporate governance

Mandatory

58

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

59, 63–64

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

73–74

Capability reviews on the agency

If applicable, Mandatory

59

Management of Human Resources

Assessment of the agency’s effectiveness in managing and developing employees to achieve agency objectives

Mandatory

50–55

Statistics on the agency’s APS employees on an ongoing and on–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

50–53

Enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of thePublic Service Act 1999

Mandatory

36, 37, 40, 52

Number of SES and non–SES employees

Mandatory

52

Salary ranges available for APS employees by classification level

Mandatory

53

Non–salary benefits provided to employees

Mandatory

53,55

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

53

Assets Management

Assessment of effectiveness of assets management

If applicable, Mandatory

67

Purchasing

Assessment of agency performance against the Commonwealth Procurement Rules

Mandatory

68

Consultants

A summary statement detailing the number of new and ongoing contracts engaging consultants, including actual expenditure

Mandatory

68

A statement of new and ongoing contracts

Mandatory

68

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

68

A statement regarding expenditure reporting in Annual Reports

Mandatory

68

Australian National Audit Office

Absence of provisions in contracts allowing access by the Auditor–General

If applicable, Mandatory

67

Exempt contracts

Contracts exempt from AusTender

If applicable, Mandatory

67

Small business

Statement of support for small and medium enterprise (SME) participation in Commonwealth Government procurement

Mandatory

67

Procurement practices of the agency that support SMEs

Mandatory

67

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

73–95

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

68

A statement regarding grants awarded to the agency

If applicable, Mandatory

68

Outline of mechanisms of disability reporting, including reference to website for further information

Mandatory

55

Website reference to where the agency’s Information Publication Scheme statement pursuant to Part II of FOI Act can be found

Mandatory

68

Correction of material errors in previous annual report

If applicable, Mandatory

N/A

Information required by other legislation

Mandatory

67–68

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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 CEO of the NHFB, GPO Box 1252, Canberra ACT 2601, or via email to
nhfb.enquiries@nhfb.gov.au.