EMHS 2021–22 financial summary

Total cost of services (expense limit)

Sourced from statement of comprehensive income

2021-22 target $000

$1733924

2021-22 actual $000

$1865559

Variation $000

$131635

The primary reasons for the variance in the total cost of services (expense limit) and the net cost of services were due to increased expenditure on:

  1. COVID-19 related employee benefits, as staffing increased (by about 25% in full time equivalent staff) and backfill costs due to staff on furlough. Also, long service leave accrued for casual staff was unfunded;
  2. Patient support costs due to increased expenditure on medical, surgical and diagnostic supplies, pathology, personal protective equipment and clothing, domestic charges and drug supplies related to COVID;
  3. Loss on revaluation on land;
  4. Repairs, maintenance and consumables, due to equipment purchases and building alterations for COVID and non-funded capital and non-capital purchases on various capital projects;
  5. Contract services due to COVID, which led to increased staffing (25% uplift) and backfill costs due to staff on furlough at SJGMPH.

Net cost of services

Sourced from statement of comprehensive income

2021-22 target $000

$1638757

2021-22 actual $000

$1767617

Variation $000

$128860

The primary reasons for the variance in the total cost of services (expense limit) and the net cost of services were due to increased expenditure on:

  1. COVID-19 related employee benefits, as staffing increased (by about 25% in full time equivalent staff) and backfill costs due to staff on furlough. Also, long service leave accrued for casual staff was unfunded;
  2. Patient support costs due to increased expenditure on medical, surgical and diagnostic supplies, pathology, personal protective equipment and clothing, domestic charges and drug supplies related to COVID;
  3. Loss on revaluation on land;
  4. Repairs, maintenance and consumables, due to equipment purchases and building alterations for COVID and non-funded capital and non-capital purchases on various capital projects;
  5. Contract services due to COVID, which led to increased staffing (25% uplift) and backfill costs due to staff on furlough at SJGMPH.

Total equity

Sourced from statement of financial position

2021-22 target $000

$1401545

2021-22 actual $000

$1428715

Variation $000

$27170

The primary reasons for the increase in total equity compared to initial estimates were:

  1. EMHS drew down less capital than originally estimated, as increased construction costs placed pressure on capital budgets and project delays due to manufacturing, logistical and supply chain issues related to COVID;
  2. Increase in the value of EMHS’ building assets due to increases in the building indices used for valuation purposes.

Net decrease in cash held

Sourced from statement of cash flow

2021-22 target $000

$32130

2021-22 actual $000

-$6199

Variation $000

$38329

The variation between actual cash balance held compared to the target was primarily due to higher employee benefits and supplies and services expenditure. While EMHS’ cash inflows from State Government were higher compared to the estimate, this increase in cash inflows was less than the total payments made in operating activities.

Approved salary expense level

Sourced from statement of comprehensive income

2021-22 target $000

$955757

2021-22 actual $000

$1027528

Variation $000

$71771

The reasons for the variation in the final salary expense compared to the approved salary limit in the initial estimates were due to COVID, which led to increased expenditure on employee benefits as staffing increased (by about 25% in full time equivalent staff) and backfill costs due to staff on furlough. Also, long service leave accrued for casual staff was unfunded.