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7 Staffing and Entitlements

7.1 Annual Leave

AASB 119 Employee Benefits sets out the reporting requirements for employee benefits including annual leave.

Provision is made in the accounts for obligations in respect of annual leave entitlements not taken at balance sheet date. The amount is to be accrued annually at remuneration rates expected to apply when the obligation is settled, that is the expected future increase in remuneration rate and comply with the requirements of AASB 119.

Provisions for annual leave should all be reported as current liability.

Each year the department provides a model to assist hospitals’ compliance with the standard.

7.1.1 Annual Leave Provision

For the provision of unused annual leave entitlements in accordance with the requirements of the amended AASB 119.

Annual Leave Model 2013-14 and instructions

  Annual Leave Provision Model - June 2014

7.1.2 Instructions for Calculating Annual Leave

This document is the supporting document for the annual leave provision. Refer to 7.1.1.

  Instructions for calculating annual leave provision - June 2013

7.2 Long Service Leave

On 22 April 2013 Circular 05/2013 replaced Circular 14/2009. The main amendments in Circular 05/2013 relate to:

  • A reconciliation table of ‘Salary and Wages Paid’ in the LSL Return to salaries and wages reported in the F1 for the same period.
  • Splitting the LSL liability in the LSL Return into current and non-current.
  • Clarifying the accountability of net decrease in debtor in debtor balance which results in a liability to Department of Health.

The provision for long service leave is determined in accordance with AASB 119 Employee Benefits. Unconditional liability for long service leave is recognised as a current liability. However, the liability is classified as long-term benefits if it is not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service. Long-term benefits have to be measured at present value. The conditional liability for long service leave is recognised as non-current liability and measured as the present value in respect of services provided by employees up to the reporting date. FRD 17B ‘Wage Inflation and Discount Rates for Employee Benefits’ provides guidance on the use of prescribed rates and alternative rates.

7.3 Staff Expenditure

eg. including salary, salary on costs. Awards, training, transport, accom, transfers etc.

7.4 Doctors in Training Draft Secondment Agreement

Historically, Health Services have individually developed various contractual instruments in an attempt to document all facets of the arrangements relating to the rotation of Doctors in Training.  As the subject area is extremely complex, a working group was convened to update the previous draft secondment agreement.  The key considerations for the working group of the agreement were:

  • Describing the two payment methods
  • Detailing administrative responsibilities and requirements
  • Determining on-costs

The draft agreement has specific focus on award entitlements and includes clauses for items including Annual Leave Penalties and Maternity obligations.

  Doctors in training - Draft Secondment Agreement

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Last updated: 13 June, 2014
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