5 Financial Reporting Requirements of Public Hospitals
The F1 form provides a single data entry point for the following:
AIMS Form F1 is used by all public hospitals and health services including Multi-Purpose Sites for financial reporting at consolidated entity level.
Hospitals and health services are required to provide monthly data to the department.This information provides the Department of Health with information to evaluate the performance and viability of reporting entities.
The monthly F1 provides information on the financial result and position of public hospitals to the department on an accrual basis. The analysis carried out on this information forms the basis of monitoring the industry by the department.
Any inconsistencies in the reporting of revenue and expenses will distort the comparability of financial results and performance of public hospitals.
In addition to financial information provided through monthly F1, hospitals also provide financial information through Annual Reports, Quarterly Financial Reports, Annual Financial Reporting and Annual Returns. To minimise inconsistencies in reporting of financial information between these financial returns or reports, the following tools are provided:
Where there are inconsistencies between the F1 and Quarterly Financial Reports / Annual Financial Reporting, hospitals are required to resubmit the F1 for the period in question to resolve the inconsistencies.
Over the past decade, DH has gradually progressed from manual monthly data collection to electronic reporting, and more recently to web-based real time reporting. The F1 form is the conduit for this. The F1 provides for inclusion of data from the income statement, balance sheet, performance indicators, statement of cash flows, notes and endorsed comments by the CEO or CFO. F1 data provides DH with information on the performance and viability of Victorian health services. The analysis carried out on this information forms the basis of monitoring the industry.
Form F1 consists of the following:
Victorian Public Hospitals - F1 Financial Reporting Change the macro settings in Excel 2007 & Excel 2010 to ‘ Disable all macros with notification’ by following the steps below:
Click File Tab or Office Button, | Excel Options, | Trust Center, | Trust Center Settings, and | Macro Settings - set to 'Disable all macros with notification'.
Close & re-open the F1.
The instructions are provided to assist users in completing the F1. The instructions should be adhered to closely so that the monthly financial returns of the public hospitals are prepared on a consistent and comparable basis.
To assist in automating the monthly reporting process, DHS requires agencies to submit a Trail Balance via an electronic file in comma delimited (CSV) format using the CCOA as the basis for reporting financial information. The format of this file has been pre-defined to enable automatic upload of the income statement and balance sheet into an excel file developed by DHS and referred to as the F1. The F1 file can be downloaded separately from the DHS HealthCollect web site. Agencies are required to ensure they are using the most recent version of the F1 file. The following instructions have been prepared to assist agencies in downloading the F1 file from the DHS web site and uploading their trail balance into the F1 file.
From 1 July 2015 it will be mandatory to upload the budget income and budget expenses via the automated process which will also allow a complete budget trial balance to be uploaded.
Annual Financial Report (AFR) is required separately under S25 of the Financial Management Act as a result of AAS 31 ’Financial Reporting by Governments’. Each hospital needs to complete the prescribed formats in Excel to meet the AFR reporting requirements. AFR information from agencies is consolidated by DHS to produce a portfolio return to DTF. DTF then consolidates Portfolio returns to produce the State’s AFR report to be tabled in Parliament.
The Department issues separate AFR instructions. To assist hospitals in the consistent treatment of items in the AFR, a table mapping the common chart subjective codes to the AFR is available (refer to 3.3.4).
Public hospitals are required to prepare annual reports under the Financial Management Act 1994. The annual report consists of Reports of Operations, Financial Statements and Explanatory Notes. The Financial Statements (consists of income statement, balance sheet, statement of changes in equity, statement of cash flow and explanatory notes). The accounting standard AASB101 primary deals with the presentation requirements of the financial statements. DHS also issues yearly guidelines to assist hospitals in fulfilling the requirements of the Act, DTF’s Financial Reporting Guidelines and the relevant accounting standards.
Public hospitals are required to prepare an Annual Return in the prescribed electronic format. The annual return provides additional financial and operational information not found in the annual report. The financial information provided in the annual return must agree with those contained in the audited annual report. The Annual Return is due on 30 September.
Refer to the current AIMS Public Hospital User Manual
In addition to the above, organisations that receive Aged Care funding must additionally report to the Commonwealth on CAP.
Conditional Adjustment Payment (CAP) is a Department of Health and Ageing initiative. The Commonwealth provides funding to public hospitals in return for the submission of prescribed information on residential age care services. This includes segment reporting on residential age care services being operated by hospitals. Relevant instructions are found in the Commonwealth Department’s website www.health.gov.au.