Health Services Resource Management
Assignment 1
45 Marks
Important: You must show all calculations and explain how you got all your answers. For example, suppose a question asks what the profit will be in a particular month and you put “$50,000”. Even if this is correct you will receive no marks if you do not show how you got the answer. There is no need for footnotes or references unless you quote directly from a source. But it is essential that the work is your own.
Question 1(15 marks)
Items from the Prince Harry Hospital’s balance sheet, revenue and expense (income) statement and cashflow statement for the 2013/14 and 2014/15 financial years (ending 30 June) were accidentally listed in alphabetical order as follows (all figures are in $’000):
2015 2014
Accounting Fees 59 60
Administrative Expenses 8,593 5,019
Audit Fees 43 42
Bad Debts 3 7
Capital Purpose Income 44,953 28,550
Cash and Cash Equivalents 11,584 15,405
Commonwealth Government Grants 100,489 93,319
Current Payables 6,961 7,734
Current Provisions 16,050 14,371
Current Receivables 3,746 3,410
Depreciation and Amortisation 5,538 5,850
Domestic Services and Supplies 1,408 1,518
Employee Benefits paid 76,920 69,518
Expenditure Using Capital Purpose Income 183 54
Fuel Light Power & Water 1,048 910
Grants from State Department of Health 3,177 2,378
Insurance Costs 2,831 2,156
Interest income 659 588
Interest paid 3 1
Inventories 1,311 1,686
Long term Provisions 1,719 1,616
Maintenance Contracts paid 557 442
Motor Vehicle expense 490 560
Non current Investments 0 215
Non Current Payables 0 356
Non Salary Labour Costs 7,612 7,657
Non-Current Receivables 569 222
Other Current Assets 131 0
Other current Liabilities 451 373
Other Revenue 4,574 1,423
Patient & Resident Fees 3,171 2,619
Patient Transport 1,221 1,201
Property, Plant & Equipment 141,297 98,439
Repairs & Maintenance 1,645 1,580
Revenue from Business Units 3,958 3,894
Short term Borrowings 0 5
Supplies & Consumables 14,292 13,058
Total Equity 133,457 94,922
Cash flow information
Capital Donations and Bequests Received 1,337 732
Capital Grants from Government 42,172 26,876
Cash at beginning of period 15,010 8,378
Cash at the end of the period 11,166 15,010
Employee Benefits paid 76,651 68,620
Fee for service Medical Officers 7,612 7,657
GST Received 6,823 4,150
Interest Received 695 489
Operating Grants from Government 102,743 92,484
Other Payments 18,658 12,829
Other Receipts Received 7,492 5,700
Patient Fees Received 3,261 2,677
Payments for Non-Financial Assets 47,783 22,020
Payments for Supplies & Consumables 18,781 16,481
Private Practice Fees Received 217 364
Proceeds from Sale of Non-Financial Assets 901 767
Required:
- Prepare balance sheets for these two financial years. Arrange these statements like the balance sheets for the Barwon Health 2011 financial statements that are in the course materials – ie put the two years side by side. Make sure to distinguish between current and non-current assets and liabilities. All figures are in thousands of dollars.
- Prepare income (profit and loss) statements for these two years for this organisation with the two statements side by side.
- Identify two significant changes that occurred during this period. Do you think that this hospital is in a good position to pay its short term debts? Explain your answer.
- Prepare a cashflow statement showing operating, investing and financing cashflows for these two financial years with the two statements side by side.
- Did the hospital experience net cash inflows or net cash outflows for these financial years? Did the hospital make a profit or loss during these years? Briefly explain why these figures are different.