ACHS Annual Report 2019-2020

ANNUAL REPORT 2019 – 2020

Common acronyms included in this Report:

ACHS – The Australian Council on Healthcare Standards ACHSI – ACHS International

ACSQHC – The Australian Commission on Safety and Quality in Health Care ACIR – Australasian Clinical Indicator Report

EQuIP – Evaluation and Quality Improvement Program EQuIPNational – The EQuIPNational program

EQuIP7 – the 7th edition of the ACHS Evaluation and Quality Improvement Program NSQHSS – National Safety and Quality Health Service Standards SAC – State Advisory Committee

October 2020 © The Australian Council on Healthcare Standards Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior

written permission from the Australian Council on Healthcare Standards.

The Australian Council on Healthcare Standards Annual Report 2019 - 2020 ISBN: 978-1-921806-75-9 (Paperback) ISBN: 978-1-921806-76-6 (E-book)

This Report is available in PDF format via the ACHS website

(under the Publications and Resources menu option) from the homepage: www.achs.org.au To order a printed copy, please contact Communications at: The Australian Council on Healthcare Standards 5 Macarthur Street

Ultimo NSW Australia 2007 Telephone 61 2 9281 9955 Facsimile 61 2 9211 9633

E-mail communications@achs.org.au Website www.achs.org.au

CONTENTS Future Vision

3

About ACHS

4

Our identity Our History

5

The Council

5

ACHS Assessors

5

Funding

5

Partnerships

5

President’s and Chief Executive Officer’s Report

6-7

Our Performance Governance

8

Highlights of the year

8

ACHS Medal

10-11

ACHS Quality Improvement Awards

12-13

Division Reports

GLOSSARY OF TERMS ACHS International

14-15

Customer Services and Development

16-17

Corporate and Assessor Division

18-19

The Improvement Academy

20-21

Accreditation

Public recognition of achievement by a healthcare organisation, of requirements of national healthcare standards.

Overview ACHS Council Members 22-23

Clinical Indicator A measure of the clinical management and outcomes of care; a method of monitoring consumer Director’s Report 24 – 45/ patient care and services which attempt to ‘flag’ problem areas, evaluate trends and so direct attention to issues requiring further review.

Assessor

A health professional trained by ACHS to assess the performance of healthcare organisations against healthcare standards and quality improvement programs.

1

“Inspiring Excellence in Healthcare”

2

ACHS’s FUTURE VISION IS: Our Mission

Strategic Goals

ACHS provides a partnership approach to continuous improvement tailored to the needs of individual services and health systems using its expertise in standards, accreditation, education and training.

Our Strategic Goals for the future continue to be:

Our Vision Our vision statement is focused on our core business. We aspire to excellence in all aspects of healthcare and want to inspire others to strive for excellence.

Our Values Values are the key foundation to our organisation.

They describe what is important to us and frame how we work.

Working Together

We work with our stakeholders to achieve goals

Accountability

We take responsibility for our performance

Commitment

We are committed to fostering an innovative and outcomes driven culture

Adaptability

Our flexibility enables us to adapt and embrace change

Responsiveness

We are quick to respond to the needs of our members and the ever-changing health landscape

Excellence

We strive for excellence in everything we do.

1

Provide industry-leading customer service

To listen and be responsive to our customers’ needs; tailoring our approaches to organisational maturity and progress against their improvement journeys.

2

Inspire individual and organisational performance

Inspire our organisation and our people to always be the best by ensuring our workplace celebrates and fosters creativity and innovation and, by providing strong leadership which creates a values-based organisational environment.

3

Expand and grow our business

4

Build strategic alliances and partnerships

5

Ensure sustainability

6

Share our knowledge

Build our business reach by strategically seeking out new opportunities that foster national and international recognition.

Create strong partnerships and alliances that support collaboration and engagement and uphold, develop and build on our vision.

Deliver an efficient and financially sustainable business model underpinned by high standards of accountability and quality assurance.

Empower our members and stakeholders to deliver quality healthcare by supporting learning and development, using data to create knowledge and, actively seek new opportunities to share information that drives improvement.

3

ABOUT ACHS Established in

1974 ACHSI operates in

17

The Council represents

countries

21

1,600 members in Australia

member organisations More than

More than

230 Australian assessors and 70 international assessors 2,971

participants in Improvement Academy courses and webinars

180+

Onsite customer support and virtual meetings



600

More than healthcare organisations reported

28,770 individual

clinical indicators

4

4

Quality Improvement Awards + 13 ‘Highly Commended’ commendations

OUR IDENTITY A corporate overview Our History The Australian Council on Healthcare Standards (ACHS) is now into its fifth decade having celebrated its 46th anniversary in 2020.

Since its establishment in 1974, the ACHS has been the pre-eminent, independent, not-for-profit organisation focussing on improving the quality of healthcare through standards and accreditation.

Over the past 15 years it has built its global influence as both a developer of healthcare standards and accreditation agency and has expanded its expertise through education, training and consultancy services.

•

•

We support both the national accreditation system as well as developing our own accreditation programs, suitable for use in a range of countries ACHS has an enviable reputation as an independent, healthcare accreditation provider currently exporting its successful program of accreditation to 17 countries.

ACHS Assessors ACHS is privileged to have the services of our assessors who enable us to deliver a strong accreditation program nationally and overseas.

• We currently have more than 230 Australian assessors, and more than 70 international assessors • ACHS invests in education and development of our assessors to build on their professional knowledge • The majority of our assessors continue to work in full-time roles as health professionals.

Funding As a not-for-profit, ACHS is a company limited by guarantee, and as such is recognised by the Australian Securities and Investments Commission (ASIC).

Most of our funding is derived from membership fees.

The ACHS Board and CEO

The Council The Council exists to support and direct Australia’s largest healthcare accreditation agency.

• In 2018 - 19 there were 21 Council member organisations with 23 Council member representatives, drawn from peak bodies in the health industry, as well as representatives from governments, consumers and life members.

ACHS is governed by a Board of nine Directors.

Our education services attract a broad cross-section of the health community and this supplements our income streams.

Partnerships ACHS continues its role as a leader in the Australian accreditation system.

• We work in a range of different partnerships that are either mutually supportive or jointly collaborative in nature.

• We aim to work across the healthcare industry and bring value to the different areas we support.

5

PRESIDENT’S MESSAGE The disruption brought to the world by the COVID-19 pandemic will be remembered for many years.

As will the way in which our communities have sought to adapt and make the most of an unusual time.

While isolation and social distancing have been enforced, travel has been restricted, and virtual meetings now replace face-to-face gatherings, the resilience and adaptability of ACHS stands us in good stead.

It has been pleasing to see the determination behind the Executive team and staff of ACHS to ensure continued development of the business as it adapts and meets challenges in this new environment.

Despite all these challenges and the effective postponement of accreditation assessments, the Board of ACHS is pleased with the company’s position and is confident as to its future.

In 2019-2020, two Board appointments were made at the ACHS Annual General Meeting on Thursday 28 November, 2019 – Professor Geoffrey Dobb (Member-elected) and Mr Michael Roff (Board appointed).

While there has been considerable disruption to our domestic and international business, it is not insurmountable, and time has been put to good use to adapt to the changing world.

While we make these changes, our overall strategic aim remains very much the same and the Board and myself thank all staff for their work and efforts during these unusual circumstances. It is worth remembering, that crucial during these times are communications, consistency, compliance, collaboration and perhaps most important of all, compassion.

Finally, on behalf of the Board and myself, I express my sincere thanks to our new CEO Dr Karen Luxford, the Executive Directors and the whole ACHS Team for their unswerving professionalism, commitment and dedication throughout the last 12 months. It has been a unique challenge, and I am proud to say that each and every one has risen to the several challenges in an impressive manner.

It was with great sadness this year that we noted the passing of long-standing Councillor Dr Eva Raik AM, who was a strong champion of the ACHS and its mission.

A new world has emerged this year, socially as well as in business, and that new world for now involves each of us learning to live with and respond to a COVID-19 environment.

I am pleased with the direction ACHS has been taking to adapt to this new world and to ensure we maintain the relevance and status of ACHS as a leader in healthcare and the healthcare community. We owe this to our members, to the consumers of healthcare and we owe it to the providers of healthcare alike. Australia as a whole has been a gold standard for the world.

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Professor Len Notaras AM President

CHIEF EXECUTIVE OFFICER’S MESSAGE While there have been many challenges throughout 2019 - 2020 at a business, community and societal level, for ACHS our focus has continued to be safety and quality – now as important as ever.

With the pausing of accreditation assessments by the Australian Commission on Safety and Quality in Health Care (ACSQHC) since late March 2020, onsite assessments with members have been on hold.

Throughout this time our devoted Team has continued to engage our members through a COVID Resource centre, educational webinars, international forums as well as personalised time with our Customer Services Managers. While our focus is very much on the re-starting of accreditation assessments in the near future, there has been scope to also ensure our valued assessors remain engaged with regular meetings, as well as educational opportunities to maximise this time.

Since commencing working from home on 25 March, we have sought to keep our staff actively engaged and productive during this period, while also considering their overall well-being. The opportunity to stop, reflect and examine what future innovative opportunities could be realised has also kept us focused on the future as we drive our business forward. We have adapted well during this pandemic, with regular weekly CEO updates from myself, action team meetings and we continued to communicate regularly with our members, keeping them well informed.

I am excited about the course we are charting and the many new initiatives that we have been working on to release in the near future. I wish to also express my sincere thanks to all staff and our Assessors for their commitment and contributions throughout this year.

The next generation of our own Evaluation and Quality Improvement Program – EQuIP7 has progressed well and pilot testing will soon be underway. We are excited to bring this new updated program, in a modular format, to the market next year.

Our Improvement Academy refocused from large face-to-face events to offering online webinars (including a free series), which have been a resounding success. We could not have predicted how popular these webinars, all delivered to a very high standard, would be.

Internationally, we have strengthened our Middle East presence with a new office in Dubai Healthcare Centre opened in early February, along with the appointment of a Regional Director who understands the region well.

Dr Karen Luxford

ACHS and ACHSI Chief Executive Officer

Throughout this time of upheaval and constant change, we have had the strategic guidance of the Board of Directors who I would like to thank for their support and strong commitment to ACHS.

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OUR PERFORMANCE Governance

Highlights

A call for nominations was sent out to Council for one Member-elected position to the Board.

One nomination was received, and in accordance with the ACHS Constitution.

Key highlights in the past year were:

No ballot was required, and Professor Geoffrey Dobb was appointed to the position unopposed at the Annual General Meeting, on 28 November, 2019.

The Board decided to also appoint a Board-Appointed Member. The Nominations Committee met and made a recommendation to the Board, and the Board approved the appointment of Mr Michael Roff in the Board-Appointed position.

ACHS engaged with our members at the Australasian College of Health Service Management (ACHSM) Asia-Pacific Health Leadership Congress on the Gold Coast (9 -11 October 2019).

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•

Several significant improvements have been made to ART2 in response to our members’ feedback and following the introduction of the National Safety and Quality Health Service (NSQHS) Standards second edition.

•

The Annual Dinner was held following the November Council meeting and AGM to celebrate the announcement of the QI Award winners, the announcement of the ACHS Medalist and the formal launch of the 20th edition of the Australasian Clinical Indicator Report. Publicity from this launch received national media coverage as a page 3 story in “The Australian” newspaper.

•

ACHS accredited the National Critical Care and Trauma Centre (NCCTRC) in Darwin as Australia’s first fully equipped portable field hospital, to ACHS’s Evaluation and Quality Improvement Program (EQuIP6).

The accreditation demonstrates that the NCCTRC has the capability to effectively meet internationally-recognised health standards that underpin patient safety and quality issues.

•

ACHS became a partner of the global Patient Safety Movement, one of the biggest global movements to protect patient safety with a mission to eliminate preventable deaths globally.

As a committed organisation, ACHS will share Actionable Patient Safety Solutions (APSS) with our members to improve patient safety.

•

ACHS welcomed Susan Frampton (Planetree International President) to speak to invited guests and staff on person-centred care in 2020 and beyond.

Susan covered the current trends and the impacts of technology on care and a videoed interview with the CEO was disseminated to our members.

•

•

ACHS International formally opened a new business office in the Dubai Healthcare City during the Arab Health conference on 29 January. The new office opening was launched by the Consul-General of Australia at his residence in Dubai. A new Regional Director of ACHSInternational Middle East commencing in April and is based in our office in Dubai Healthcare City.

The first edition of the Cancer Care Clinical Indicators was developed following the inaugural Cancer Care Working Party meeting held late 2019 and endorsed this year by the Clinical Oncology Society of Australia (COSA).

The working party had representatives from key stakeholders such as Cancer Council Australia, Royal Australian and New Zealand College of Radiologists, Cancer Institute NSW, Cancer Nurses Society of Australia, ICON Cancer Care, Peter MacCallum Cancer Centre, Society of Hospital Pharmacists of Australian and representatives from Primary Cancer Care, Private Hospitals and the community.

With the onset of the COVID-19 pandemic in late February – March, ACHS launched an online Resource Centre to provide helpful guidance for our members to support their staff.

•

Due to the pandemic, ACHS advised accreditation members that all in-person activities and onsite accreditation assessments are postponed. ACHS paused NSQHS Standards assessments in alignment with the directive from the Australian Commission on Safety and Quality in Health Care (the Commission), and paused EQuIP Standards assessments in alignment with the directive from the ACHS Board.

•

This decision was made to ensure the safety of health service organisation staff, patients and assessors, and to allow frontline healthcare professionals to focus their full efforts on addressing the possible impacts of COVID-19.

During this period, current accreditation has been maintained for all health service organisations.

•

ACHS and ACHS International Assessors continued to maintain their skills during the pandemic with our online education forums.

A new web-based training module and opportunities were developed, along with ongoing updates from ACSQHC.

•

ACHS partnered with the Digital Health Co-operative Research Centre (DHCRC), a national collaborative research group in February to investigate how better to achieve data support of healthcare accreditation processes.

•

In response to feedback from our customers, ACHS developed EQuIP7 in a modular program that consists of a set of core standards used by every EQuIP member, plus a module containing elements specific to the healthcare service. The new format will provide a more tailored program, with content applicable for individual healthcare services.

•

The St John of God Health Care group renewed their contract with ACHS for accreditation to the NSQHS Standards. The membership covers all their hospitals, day procedure centres, and healthcare at home services located in Western Australia, Victoria, and New South Wales.

•

Southern NSW Local Health District (SNSWLHD) continued its longstanding relationship with ACHS by renewing its contract for accreditation to the NSQHS Standards. It is one of the largest Local Health Districts in NSW with 18 public hospitals and health services.

9

ACHS MEDAL The following citation was given on 28 November 2019

Citation for the 2019 ACHS Medal winner awarded to A/Prof Leslie Reti AM “The ACHS Medal is now in its 35th year and provides a valuable spotlight for encouraging personal performance and recognition in the health quality and safety arena.

It continues to recognise an individual’s outstanding contribution to the promotion of quality and safety in Australian health services.

The award is ACHS’s highest award and tonight I can announce that the 29th recipient of the ACHS Medal is A/Prof Leslie Reti AM. Congratulations Leslie on this award and I will now read an excerpt of the Citation which accompanies the Medal.”

“For outstanding achievement in the promotion of quality in health care” Associate Professor Les Reti’s commitment to Australian women’s health and public health as a personal physician, innovator and advocate, is without peer.

Since graduating with an MBBS in 1972, Dr Reti has become respected not only for his clinical obstetrics and gynaecology expertise, but also for his dedicated leadership in improving the quality and safety of healthcare on local, state and national levels.

As well as a Senior Gynaecologist at the Royal Women’s Hospital in Melbourne (the Women’s), he is the Director of Clinical Governance; a Lecturer at University of Melbourne, and Adjunct Associate Professor of Public Health at La Trobe University.

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He has been a highly valued Board Member of Peter MacCallum Cancer Centre since December 2013, is Chair of their Quality Committee, is on their Research Committee and is a past member of their Finance Committee.

Dr Reti spent five years as an academic Obstetrician and Gynaecologist at the University of Melbourne and Leicester University in the UK before his appointment to the Women’s in Melbourne in 1982.

He became Head of Unit in 1989 and from 1994-95 was Chairman of the Gynaecology staff.

Dr Reti ensured the future commitment to quality and safety at the Women’s by lobbying successfully for the inclusion of quality improvement in the training of O&G trainees, leading to the development of a 12-month position for a trainee as a Fellow in Quality and Safety. This led to a more thorough, cohesive and transparent assessment and reporting system at the Women’s.

In his professional roles over a 40-year career he has been instrumental in promoting and leading quality improvement across the hospital.

With his knowledge and compassion he has developed and championed some of Victoria’s most successful and well-regarded programs with women’s health and wellbeing at their core.

For 29 years Dr Reti has been dedicated to preventing violence against women.

He has guided policy and developed progressive programs and new systems which have made a direct and positive difference to the health and well-being of thousands of people.

He has had many significant roles - too numerous to list here - on quality and safety committees including some high-profile appointments.

Professor Leslie Reti AM received the ACHS Medal 2019 from Professor Len Notaras AM at the ACHS Annual Dinner 2019.

Leslie Reti has shown genuine and insightful understanding of the systemic issues which affect women, especially our most vulnerable women.

Many in the community would not know him, but most of us have benefited from his work as an innovator always striving for excellence.

Congratulations Dr Reti AM.

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QUALITY IMPROVEMENT AWARDS The QI Awards 2019 were presented at the Stamford Plaza Airport, Mascot, Sydney.

Two Sydney hospitals and an ACT hospital were the winners in the annual ACHS Quality Improvement (QI) Awards 2019.

Team members from Calvary Public Hospital Bruce, ACT with their QI Award for the ‘Clinical Excellence and Patent Safety’ category.

Calvary Public Hospital Bruce in partnership with Capital Health Network, Royal Prince Alfred Hospital in partnership with Chris O’Brien Lifehouse Medical Physics Team, and the Royal North Shore Hospital, each took out an award, demonstrating their leadership status as innovators in different aspects of healthcare.

ACHS CEO Dr Karen Luxford presented the awards in three categories – Clinical Excellence and Patient Safety, Non-Clinical Service Delivery, and Healthcare Measurement. A fourth, new category – ‘Global Quality Improvement Winner’ was won by the National Critical Care and Trauma Response Centre, Northern Territory.

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Team members from Royal Prince Alfred Hospital in partnership with Chris O’Brien Lifehouse presented with their QI Award for the ‘Non-Clinical Service Delivery’ category.

Calvary Public Hospital Bruce in partnership with Capital Health Network won the Clinical Excellence and Patient Safety Award for their ‘Trialling a Geriatric Rapid Acute Care Service in the ACT’.

The Non-Clinical Service Delivery Award was won by Royal Prince Alfred Hospital in partnership with Chris O’Brien Lifehouse Medical Physics Team for their ‘Collaboration and Development of an Innovative Total Body Irradiation (TBI) Bed for the Best Patient Care’.

Team members from Calvary Public Hospital Bruce, ACT presented with their QI Award for ‘Clinical Excellence and Patient Safety’ category by ACHS President Professor Len Notaras AM.

Royal North Shore Hospital won the Healthcare Measurement Award for their ‘Reducing Inappropriate Arterial Blood Gas Testing in a Quaternary Intensive Care Unit’.

The National Critical Care and Trauma Response Centre based in Darwin won the new Global Quality Improvement Award. This award recognises projects that are using Australian healthcare standards to strengthen quality improvement frameworks internationally.

The breadth of entries this year demonstrated the strong value attached to developing patient safety and quality projects in healthcare.

Team members from Royal North Shore Hospital, NSW with their QI Award for the ‘Healthcare Measurement’ category.

The judges were very impressed with the quality of entries and the amount of innovation employed.

Each of the winners has created a substantial improvement in health by implementing a quality improvement activity within the last two years which demonstrates measurable results that benefits patients or staff.

ACHS hosts these awards to recognise the effort going into delivering innovate and effective solutions in complex environments that will make a noticeable difference for patients.

Team members from the National Critical Care and Trauma Response Centre, NT presented with their QI Award in the new ‘Global Quality Improvement’ category.

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INTERNATIONAL Here is a snapshot of our international work and how we will continue to be the trusted healthcare quality improvement partner to organisations across the world.

Everything we do is focused on supporting organisations to continually improve the safety, quality, value and outcomes of care provided to their patients and community.

We are committed to innovation and thinking differently about how we partner with our members and have introduced: •

•

To continue expanding our global reach and improving support to our members, we have:

•

Invested in regional presence

•

• •

Dubai – ACHS International Middle East in Dubai Healthcare City Hong Kong – ACHS International Asia Pacific

Participated in key conferences • •

Arab Health (Dubai) – Silver Sponsors Health Management Asia (Vietnam)

•

•

The Safe Healthcare Advisory Program (SHEAP) in partnership with the Joint Commission of Taiwan, The Healthcare Quality Improvement (HQI) Foundations course, delivered in conjunction with the University of Wollongong in Dubai, Additional member support services such as coaching, expert guidance, and global organisation connections, A new dedicated website (www.achsi.org) and updated Member Portal, A Global Lifelong Learning campaign to connect our network with international expertise, perspectives, and insights, A public COVID-19 Resource Centre to assist healthcare providers navigate the global pandemic.

Platinum Sponsors •

International Health Federation World Congress (Oman)

Developed a global network of representatives • • • •

Vietnam Japan Sri Lanka United Arab Emirates

Increased our global Assessor cohort with training programs conducted in: • • • •

Dubai Hong Kong Shanghai Colombo

Key Achievements • •

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Established ACHS International Middle East FZ LLC Welcomed our Regional Director Middle East

Key Facts

21 Number of onsite assessments conducted in FY20

45 number of offsite assessments conducted in FY20

84 number of full members active

in FY20

17 number of countries in which we operate

5

consultancies and readiness diagnostic assessments conducted

70 international based assessors

Signing of a Memorandum of Understanding between the Joint Commission of Taiwan and ACHS International.

ACHS International continued to participate in international healthcare conferences and invest in its regional presence, globally.

Dr Karen Luxford speaking at the Health Management Asia conference, in Hanoi, Vietnam in September 2019.

Dr Karen Luxford and Dr Lena Low (Centre) were welcomed by the KARS Group from Indonesia.

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CUSTOMER SERVICES AND DEVELOPMENT Customer Services Managers The Customer Services Managers (CSMs) are responsible for contract management of all national accreditation contracts and the provision of ongoing customer support in the implementation of accreditation programs.

This ongoing customer support is delivered via videoconference, telephone, email and onsite visits

by CSMs who are experienced health professionals.

Access to ongoing customer support is available to member organisations throughout the entire accreditation process and this level of customer support is highly regarded and valued by our member organisations.

Key Achievements • • • •

National St John of God Health Care group contract signed Successful Tasmania Statewide Mental Health Services Request for Quote Successful Western NSW Local Health District Expression of Interest 180+ customer support onsite and virtual meetings.

Standards and Product Development Standards and Product Development (SPD) are responsible for the generation and maintenance of ACHS quality improvement programs including EQuIP, EQuIP Day Procedure Centres, EQuIP Haemodialysis Centres, EQuIP Oral Health Services, EQuIP Aged Care Services, EQuIP Primary Health Care Services, and EQuIP Healthcare Support Services.

SPD prepares submissions to the Australian Commission on Quality and Safety in Healthcare (ACSQHC) for accreditation approval and responses to annual ACSQHC feedback reports. This unit also develops resources and specialist publications to

16

support ACHS programs. SPD works in consultation with key internal and external stakeholders to ensure program development reflects current health priorities and contemporary best practice.

SPD contributes to various special projects undertaken

by ACHS, as well as industry consultations, the development of relevant healthcare Standards with Standards Australia and representation on external Committees on behalf of ACHS. The ACHS annual Quality Improvement (QI) Awards acknowledge and encourage outstanding quality improvement activities, programs, or strategies that have been implemented in healthcare organisations. This unit co-ordinates the Awards program.

Key Achievements •

•

•

•

An expert led, structural change to the EQuIP program with finalisation and Board endorsement of EQuIP7 Core standards for all EQuIP members.

Development, finalisation, and Board endorsement of EQuIP6 Primary Healthcare Standards for the International market.

Development, finalisation, and Board endorsement of ACHS – KARS SNARS - EQuIP module for dual accreditation with Indonesia.

Introduction of the Global Quality Improvement Award in the ACHS Quality Improvement Awards Program.

Performance and Outcomes Service The ACHS Performance and Outcomes Service Unit coordinates the development, collection, analysis and reporting of clinical indicators. The ACHS Clinical Indicator Program is Australia’s longest running clinical indicator program and has more than 320 clinical indicators across 20 specialty medical disciplines.

The program operates by facilitating benchmarking with participating healthcare organisations at an organisational, peer, and national level.

Key Achievements •

•

•

•

Assisted more than 660 healthcare organisations reporting 28,770 individual clinical indicators across both Australia and overseas.

Four clinical indicator sets were reviewed and updated (Anaesthesia & Perioperative Care, Intensive Care, Gynaecology, and Pathology).

A new indicator set for Cancer Care was developed with a range of leading Australian cancer treatment organisations and published for use.

Promoted the Clinical Indicator Program through 34 one-hour training sessions to both domestic and international members.

Standards Committee The Standards Committee is a permanent standing sub-committee of the ACHS Board with a pivotal role in guiding and refining development of new ACHS standards and programs, and reviewing proposed changes to existing ACHS Standards. The Committee reports its recommendations directly to the ACHS Board.

The Standards Committee has broad representation from across the health care sector, including members with experience as ACHS assessors. Committee membership is drawn from both the public and private sectors and includes clinicians, consumers, senior health administrators, allied health professionals, and quality managers. Standards Committee membership includes representation from New Zealand.

International representation from Asia and the Middle East is also provided on Standards Committee working groups.

Dr Philip Hoyle was Chair of the Committee during the period 2019-2020. Committee membership also includes the President of the ACHS and the ACHS Chief Executive Officer. The Standards Committee is administered by the ACHS Standards and Product Development Unit, led by the Executive Director Customer Services and Development. A major focus for the Standards Committee during 2019-2020 was the development of the EQuIP7.

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CORPORATE AND ASSESSOR DIVISIONS The Corporate and Assessor Divisions (CAD) support the entire organisation and its external stakeholders.

•

The Assessor Division conducted two Assessor Competency Training programs for new assessors in both Australia and the Middle East and a refresher program for assessors in Hong Kong.

•

Annual Training Forums were held for our Lead Assessors and separately in each state for the broader assessor cohort.

•

Regular virtual meetings were established with domestic and international assessors and have proven a valuable communication and learning resource.

•

The ACHS assessor cohort comprises 241 Assessor in Australia (57 of whom are Lead Assessors) and 72 internationally based Assessors in Hong Kong and the Middle East.

Key responsibilities of the CAD include; •

• • • • •

Management of all aspects of the assessor cohort, Management of the IT infrastructure and software of ACHS, Management of ACHS finances, Administration of the ACHS State Advisory Committees (SACs), Internal and external data reporting and analysis, As well as the administration of the accreditation processes.

Assessor Division The ACHS Assessor Division aims to provide and support a professional, contemporary and responsive cohort of trained Assessors to meet the varied needs of member organisations, and also to independently, effectively and comprehensively assess across a range of quality and safety Standards both domestically and internationally.

The Assessor Division aims to support this process and our valued assessor cohort with; competency-based induction and orientation programs, ongoing education, training and support, feedback from members and peers and regular communication, and collaborative opportunities to apply their collective learnings and knowledge. Our goal is to promote quality and safety in healthcare through vigorous accreditation assessment with an emphasis on ongoing improvement to support evaluation and positive outcomes.

Key Achievements •

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In April 2020 ACHS was awarded a full four-year accreditation of its Assessor training programs (including induction / orientation, and ongoing training and development) against the ISQua IEEA Guidelines and Standards for Assessor Training Programs, with an overall score of 99%.

Assessor Division

1

95% members satisfied or very satisfied

2

97% of assessors and lead assessors

3

that the experience and expertise of Assessors match their organisation.

attended required education.

95% of assessment reports completed within expected time frames.

Information Technology

1 2

99.7% uptime of external IT systems

including ACHS Website, EAT, ART2, and PIRT.

99.9%

of data backups completed successfully.

• Hardware and software upgraded to current technology and to support current accreditation products

Retiring Assessor Acknowledgements – 2019-20

Finance and Human Resources Administration

Accreditation Administration Services

• Unqualified audit report received.

• 7.4 years average length of service for employees.

• All paper-based systems and processes replaced with electronic systems and processes.

• 94% of reports processed within expected timeframes.

• 98% of new memberships processed within three days.

• 97% of accreditation outcomes processed within two working days.

Business Services • 100% of data requests were accurate, provided within the requested timeframe and received no negative feedback.

• 1-day average from date of request to date of provision of data reports.

• 99% of criteria achieved the highest rating level with ACHS assessor training program re-accredited

by IEEA to April 2024.

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THE IMPROVEMENT ACADEMY The Improvement Academy provides highly-regarded contemporary training programs that meet the needs of a dynamic and complex healthcare system.

3 styles of training offered: Face-to-face training

Now in its fifth year the Academy continues its strong focus on building capability in quality improvement, clinical services redesign and patient safety. Its target audience is frontline clinicians, senior managers, executives and board members.

Due to the pandemic, in March 2020 the Academy moved the majority of its training into virtual webinars using Zoom. It continues to support clinical teams with high quality and relevant training.

One day workshops

FREE WEBINARS attracted on average

286

per webinar

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Public webinars and custom events

Lead Level

The QIL program is offered as customised training for organisations who are looking to accelerate their quality improvement and clinical service redesign efforts. Organisations who have undertaken it include Central Adelaide Local Health Network and Women’s and Children’s Health Network SA.

Three Quality Improvement Lead (QIL) Training Programs commenced in Sydney, Brisbane and Melbourne.

• Open to any health care professional across Australia who wanted to attend.

The ‘Root Cause Analysis’ (RCA) one-day program • •

11 public and seven custom workshops delivered, a total of 447 participants attended these workshops (with all jurisdictions represented).

NSQHS Standards (second edition) • • • •

18 ‘NSQHS Standards (second edition): Planning for Success’ workshops held 13 of which were custom five were public to a total of 405 participants.

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ACHS COUNCIL MEMBERS Our Council represents consumers, governments, and peak health industry bodies from throughout Australia.

ACHS COUNCILLORS as at 20 June 2020 was 23 Councillors, including two life members.

The ACHS Council’s powers and duties include:

Professor Geoff Dobb

1

Election of Member-elected Directors to the Board at the Annual General meeting,

2

Consideration and recommendations to the Board regarding the acceptance of other organisations as members of the Council,

3

Contribution and support of the ACHS and assistance in determining the strategic direction of the organisation,

4

Participation in the determination of accreditation status, where appropriate,

5

Consideration and monitoring of Board performance.

BSc (Hons), MBBS, FRCP, FRCA, FANZCA, FCICM, FAMA • Australian Medical Association (AMA)

Professor Brett Emmerson AM

MBBS, MHA, FRANZCP, FRACMA • The Royal Australasian College of Medical Administrators (RACMA)

Dr Roger Jonathan Garsia

MBBS, PhD, FRACP, FRCPA • The Royal College of Pathologists of Australasia (RCPA)

Ms Claire Hewat

AdvAPD, BSc, Dip.Nutrition & Dietetics, Dip Management • Allied Health Professionals Australia

Dr Michael Hodgson AM

FAMA, MBBS, FANZCA, FRCA • Life Member of ACHS Council

Dr David Hutton

MBBS, GradDipEcon • NSW Ministry of Health

Assoc Professor Gregory Jenkins

Dr Eva Raik

22

MBBS, FRANZCOG • Royal Australian and New Zealand College for Obstetricians and Gynaecologists

It was with sadness the Council noted the passing in mid December 2019 of Councillor, former ACHS President and long-time supporter Dr Eva Raik AM.

Mr Mark Kearin

The Council acknowledges her strong contributions over a number of decades to the development and growth of ACHS.

Clinical Associate Professor Peter Kendall

RN, ADCNS(Geront Nurs), BHSc(Mgt), MHSc(Mgt) • Australian Nursing Federation (ANF)

MBBS, DA, FRACP, FCCP • The Royal Australasian College of Physicians (RACP)

Mr Tony Lawson

BA, BSoc.Admin, FIPAA, FAIM, CPMgr • Consumers’ Health Forum of Australia Ltd (CHF)

Adj Associate Professor Karen Linegar

Dr Paul Scown

MBBS, BHA, FRACMA, AFACHSM, MAICD • Australian Healthcare & Hospitals Association (AHHA)

RN, RM, MHA, BAppSc (Nursing), BBus, Dip.Comm Law, FRCNA, JP • The Australian College of Nursing (ACN)

Dr Jo Sutherland

Dr David Lord

Dr Phillip Truskett AM

MBBS, DPM, FRANZCP • Royal Australian and New Zealand College of Psychiatrists (RANZCPS) (Retired as a Councillor November 2019)

Ms Angela Magarry

BHA, MPS, CGFNS, FCHSM • Australasian College of Health Service Management (ACHSM)

Dr Sally McCarthy

MBBS, MBA, FACEM • Australasian College for Emergency Medicine (ACEM)

•

Australian and New Zealand College of Anaesthetists

MBBS, FACS, FRACS, FASCBI (Hons) • The Royal Australasian College of Surgeons (RACS)

Mr Stephen Walker

AssDip.Eng, B.Bus, GradDipAcc, AFCHSE, MAICD • Australian Private Hospitals Association (APHA)

Dr Noela Whitby AM

MBBS, GradDipHumNut, DPD, FRACGP, FAICD • The Royal Australian College of General Practitioners (RACGP)

Mr Russell McGowan •

Health Care Consumers’ Inc

Dr Jon Mulligan

MBBS, MHA, FRACP, FRACMA, GAICD Life Member of ACHS Council

Prof Leonard Notaras AM

AFCHSE, LLB, BA (Hons), DipComm, BMed, MHA, MA • President • Northern Territory Department of Health and Community Services

Ms Samantha Sanders •

Day Hospitals Australia

23

DIRECTORS’ REPORT The Board of Directors (the Board) of The Australian Council on Healthcare Standards Limited (“ACHS”) in office at the date of this report present the results of The Australian Council on Healthcare Standards Limited and its controlled entities (collectively referred to as “the Group”) for the financial year ended 30 June 2020 and the Independent Auditor’s Report thereon.

Directors and meeting attendance At the date of this report, the names of the members of the Board, the meetings of the Board and meetings of the Board Finance Audit and Risk Committee (BFARC), and the number of meetings attended by each of the Board members during the financial year are listed and summarised in the table below:

A: Number of meetings attended B: Number of meetings held during the time the director held office during the year Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Details of directors’ qualifications, experience and special responsibilities can be found on pages 26 to 27 of this report.

Company secretary Dr Karen Luxford has held the Company Secretary role since July 2019, she is also the Chief Executive Officer of the ACHS.

24

Mission and strategy The Group’s mission is to strengthen safe, quality healthcare by continuously advancing standards and education nationally and internationally. The Group’s strategy for accomplishing its mission include: • Expand our business reach • Grow our membership • Build strategic alliances • Inspire organisational performance • Ensure sustainability • Share our knowledge

Principal activities The principal activities of the Group during the financial year remained unchanged and were dedicated to improving the quality of healthcare in Australia through continuous review of performance, assessment and accreditation.

endorse all risk monitoring, compliance, financial reporting, budgeting and forecasts for the Group.

During the year existing controls are in place to ensure all identified risks are managed within an acceptable level consistent with our risk appetite.

Members’ guarantee ACHS is incorporated as a company limited by guarantee. In accordance with the company’s constitution each member ofthe company is liable to contribute $50 if the company is wound up during the time he/she is a member or within one year thereafter.

As at 30 June 2020 the total amount those members of the company were liable to contribute if the company is wound up is $1,150.

Review of operations

The Group’s net surplus of $2,436,188 was mainly attributable to accreditation membership income, costs and operating expenditure savings. The Group has no loans or borrowings to any financial institution as at 30 June 2020.

Risk Management The ACHS is committed to the effective management of risks. At the ACHS the ownership of the day to day management of risks remains the responsibility of the Chief Executive Officer with the support of ACHS staff. The Board Finance Audit and Risk Committee (BFARC) has the primary oversight of risk management practices across the ACHS. Its responsibilities include assisting the Board through periodic review of the operation of the ACHS Risk Framework and through review of reports from the Chief Executive Officer. The BFARC meets at least twice a year, to

25

BOARD OF DIRECTORS ACHS Board Members: representing consumers, governments and the Australian healthcare industry Professor Len Notaras AM (President)

FACHSM, AFCHSE, LLB, BA (Hons), DipComm, BMed, MHA, MA • ACHS President from 2017 • ACHS Vice-President from 2015 • ACHS Board member from 2002 • ACHSI Board member from 2009 • ACHS Councillor (Northern Territory Health representative) from 2002 • Founder National Critical Care and Trauma Response Centre 2004, Executive Director NCCTRC from 2009 - present • Chief Executive Officer (CEO), NT Department of Health

Mr Stephen Walker (BFARC Chair)

Ass Dip Eng, BA Bus (Health Management), Grad Dip Acc, FCHSM, MAICD • Chair ACHS Business Finance, Audit and Risk Committee from 2012 • ACHSI Board member from 2011 • ACHS Board member from 2006 • ACHS Councillor (APHA representative) from 2006 • Chief Executive Officer, St Andrew’s Hospital, Adelaide from 2001 - present • APHA Council Member • Board Member Adelaide University Health and Biotech Advisory Board

Professor Geoffrey Dobb

BSc (Hons), MBBS, FRCP, FRCA, FANZCA, FCICM, FAMA • ACHS Business Finance, Audit and Risk Committee, and Governance Committee • ACHS Board Member from 2011 • ACHS Councillor (Australian Medical Association representative) from 2011 • Head of Department, Intensive Care, Royal Perth Hospital from 2005 - present • Clinical Professor, Faculty of Health and Medical Sciences, University of Western Australia • Board Deputy Chair, Child and Adolescent Health Service, WA from 2016 • Chair of the CAHS Safety and Quality Committee from 2016

Professor Brett Emmerson AM

MBBS (QLD), MHA (NSW), FRANZCP, FRACMA, FCHSM • ACHS Board Member from 2015 • ACHS Councillor, (Royal Australasian College of Medical Administrators representative) from 2009 • Member, ACHS Standards Committee from 1994 • ACHS Assessor from 1994 • Executive Director, Metro North Mental Health Brisbane from 1997 - present • Professor, School of Clinical Medicine, University of Queensland • Chair, Qld Mental Health Clinical Collaborative from 2005

26

Mr Anthony (Tony) Lawson

BA, BSoc.Admin, FIPAA, FAIM, CPMgr • ACHS Board Member from 2012 • Member ACHS Board Finance, Audit and Risk Committee, Governance Committee • ACHS Councillor (Consumers Health Forum of Australia representative) from 2012 • Former ACHS Assessor • Chair, Consumers Health Forum of Australia Ltd from 2014 - present • Awarded Professional Life Membership, IPAA (SA Division) 2018 • Executive Director, Laurel Palliative Care Foundation, The Hospital Research Foundation Group

Mr Michael Roff

Grad Cert Mgt. • Independent Director appointed to the ACHS Board from November 2019 • ACHS Board member from 2004 to 2019 • ACHSI Board member from 2017 • ACHS Councillor (Australian Private Hospital Association representative) from 2004 - 2019 • Chief Executive Officer, Australian Private Hospital Association from 2000 – present • Member, Australian Commission for Safety & Quality in Health Care Private Hospital Sector Committee, 2013 - present • Member, Private Health Ministerial Advisory Committee 2016 – 2019

Dr Paul Scown

MBBS (UQ), BHA (UNSW), FRACMA, AFCHSM, MAICD • ACHS Board member from 2017 • ACHS Councillor from 2006 (Australian Healthcare and Hospitals Association representative) • Consultant to the Health Education and Research Sectors • Sid Sax Medal recipient 2018 • Adelaide Primary Health Network (APHN) Board Service & Clinical Governance Committee Member from 2017 • Nexus Primary Health Chair from 2014 • Board of Advice, Deeble Institute for Health Policy Research Member from 2015

Ms Anne Trimmer AO

BA, LLB (ANU) FAAL, FAICD • Independent Director appointed to the ACHS Board from July 2018 • Secretary General Australian Medical Association 2013 – 2018 • CEO Medical Technology Association of Australia 2006 - 2013 • Barrister and Solicitor

Dr Noela Whitby AM

MBBS (Qld), Grad Dip HumNut, DPD, FRACGP, FAICD • ACHS Vice-President, 2005 – 2007 • ACHS Board member, 2000 – 2009; 2012 – present • ACHS Councillor, 2000-2009; 2012 – present • ACHSI Board member, 2006-2009; 2018 – present • Past ACHS Assessor • General Practice Principal, Carindale Medical Clinic, Brisbane from 1979 • Member, Medical Services Advisory Committee, Australian Government, 2014 - 2017

27

Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 29.

Professor Len Notaras AM President Board of Directors

Page 5 of 22

28

The Australian Council on Healthcare Standards Limited The Australian Council on Healthcare Standards Limited The Australian Council on Healthcare Standards Limited Consolidated Statement of Changes in Equity For the year ended 30 June 2020

Retained surplus

$

Balance as at 30 June 2018

9,010,969

Surplus attributable to members for year ended 30 June 2019

2,128,250 Level 16, Tower 2 Darling Park 11,149,219 20116, Sussex Level TowerStreet 2 Darling Park Sydney 2000 201 SussexNSW Street 2,436,188

Balance as at 30 June 2019 Surplus attributable to members for year ended 30 June 2020

Sydney NSW 2000

Balance as at 30 June 2020

13,585,407

Postal Address

Postal GPOAddress Box 1615 GPO Box 1615 Sydney NSW 2001 Sydney NSW 2001

Financial assets at fair value through other comprehensive income Balance as at 30 June 2018

-

p. +61 2 9221 2099 e. sydneypartners@pitcher.com.au

Total other comprehensive Income for the year ended 30 June 2019 Balance as at 30 June 2019

-

Total other comprehensive Income for the year ended 30 June 2020

(28,889)

Auditor’s Independence Declaration Auditor’s Independence Declaration Balance as at 30 June 2020

(28,889)

ToTo thethe Responsible Council on onHealthcare HealthcareStandards Standards ResponsibleEntities’ Entities’of ofThe TheAustralian Australian Council Consolidated Statement of Cash Flows For the year ended 30 June 2020 ABN 9090 008 549 773 ABN 008 549 773 Note

2020 $

2019 $

14,990,679

15,029,367

(10,286,099)

(13,814,791)

4,944,714

1,609,245

I declare that thebest bestofofmy myknowledge knowledge and and belief, during 2020 there have been no no I declare that toto the duringthe theyear yearended ended3030June June 2020 there have been Cash flows from operating activities contraventions of: contraventions of: Receipts from customers

Payments to suppliers and employees

Charities andand Not-for-profits i. i. the the auditor’s auditor’sindependence independencerequirements requirementsasassetsetoutoutin inthetheAustralian Australian Charities Not-for-profits Interest received Act 2012 in relation to the audit; and 240,134 394,669 Commission Commission Act 2012 in relation to the audit; and Net cash provided by operating activities

15 ii. any applicable code of professional conduct in relation to the audit.

ii.

any applicable code of professional conduct in relation to the audit.

Cash flows from investing activities (87,619) (14,145) This declaration is in respect of The Australian Council on Healthcare Standards and the entities it controlled Acquisition of property, plant and equipment This declaration is in respect of The Australian Council on Healthcare Standards and the entities it controlled during theofyear.

460 Disposal property, plant and equipment

during the year.

Movement in investments and short-term deposits

11,374,785

(1,861,694)

Net cash provided by / (used in) investing activities

11,287,626

(1,875,839)

16,232,340

(266,594)

2,343,109

2,609,703

18,575,449

2,343,109

M A ALEXANDER MA ALEXANDER Partner

Net increase / (decrease) in cash held Partner Cash at the beginning of the financial year PITCHER PARTNERS

PITCHER Sydney Cash atPARTNERS the end of the financial year Sydney

4

22 October 2020

22 October 2020 Adelaide

Brisbane

Melbourne

Newcastle

Perth

Pitcher Partners is an association of independent firms.

Adelaide Brisbane Melbourne Newcastle Perth

Sydney

Sydney

An independent New South Wales Partnership. ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation.

Pitcher Partners is a memberfirms. of the global network of Baker Tilly International Limited, the members of which Pitcher Partners is an association of independent are separateNew and South independent entities. ABN 17 795 780 962. Liability limited by a scheme approved under Professional An independent Waleslegal Partnership.

Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

pitcher.com.au

pitcher.com.au Page 8 of 22

29

The Australian Council on Healthcare Standards Limited Consolidated Statement of Profit and Loss and Other Comprehensive Income For the year ended 30 June 2020 Note

2020 $

2019 $

Revenue from contracts with customers

2

12,371,598

14,086,935

Other revenue

2

525,488

127,990

Interest revenue using the effective interest method

2

240,134

394,669

Total revenue

2

13,137,220

14,609,594

Communications and marketing expenses Accreditation program support and development costs Administration expenses

(422,701)

(338,342)

(7,474,954)

(7,299,510)

(724,245)

(628,132)

(1,865,175)

(3,976,596)

Other expenses

(213,957)

(228,765)

Surplus for the year

2,436,188

2,138,250

Assessment costs

Other comprehensive income Items that will not be reclassified to profit or loss Changes in the fair value of investments at fair value through other comprehensive income Total comprehensive income

(28,889)

-

2,407,299

2,138,250

Consolidated Statement Financial Position As at 30 June 2020 Current assets Cash and cash equivalents

4

18,575,449

Trade and other receivables

5

1,382,154

2,072,975

Financial assets

6

-

14,372,997

Other assets

7

Total current assets

2,343,109

50,220

74,632

20,007,823

18,863,713

Non-current assets Plant and equipment

8

87,903

24,226

Land and building

9

1,747,702

1,856,861

Financial assets

6

2,969,323

-

Total non-current assets Total assets

4,804,928

1,881,087

24,812,751

20,744,799

Current liabilities Trade and other payables

10

380,997

622,566

Provisions

11

47,206

94,132

Contract liabilities

12

9,431,863

7,705,804

Employee benefits

13

1,318,358

1,052,719

11,178,424

9,475,221

77,809

120,359

Total current liabilities Non-current liabilities Employee benefits Total non-current liabilities

13

77,809

120,359

Total liabilities

11,256,233

9,595,580

Net assets

13,556,518

11,149,219

13,585,407

11,149,219

(28,889)

-

13,556,518

11,149,219

Equity Retained Surplus Reserves Total equity

Page 7 of 22

30

The The Australian Australian Council Council on on Healthcare Healthcare Standards Standards Limited Limited

CONSOLIDATED CONSOLIDATED FINANCIAL STATEMENT Consolidated Consolidated Statement Statement of of Changes Changes in in Equity Equity For For the the year year ended ended 30 30 June June 2020 2020 Retained Retained surplus surplus Balance as Balance as at at 30 30 June June 2018 2018

$ $ 9,010,969 9,010,969

Consolidated Statement of for Profit and Loss and Income Surplus to year 30 2019 Surplus attributable attributable to members members for year ended ended 30 June June 2019Other Comprehensive2,128,250 2,128,250 for Balance the year ended 30 June 2020 as at 30 June 2019 11,149,219 Balance as at 30 June 2019 Surplus Surplus attributable attributable to to members members for for year year ended ended 30 30 June June 2020 2020

11,149,219 2,436,188 2,436,188

Balance Balance as as at at 30 30 June June 2020 2020

13,585,407 13,585,407

Financial Financial assets assets at at fair fair value value through through other other comprehensive comprehensive income income Balance as as at at 30 30 June June 2018 2018 Balance

---

Total Total other other comprehensive comprehensive Income Income for for the the year year ended ended 30 30 June June 2019 2019 Balance as at 30 June 2019 Balance as at 30 June 2019

-(28,889) (28,889)

Total Total other other comprehensive comprehensive Income Income for for the the year year ended ended 30 30 June June 2020 2020 Balance as at 30 June 2020 Balance as at 30 June 2020

(28,889) (28,889)

Consolidated Consolidated Statement Statement of of Cash Cash Flows Flows For For the the year year ended ended 30 30 June June 2020 2020 Note Note

2020 2020 $ $

2019 2019 $ $

14,990,679 14,990,679 (10,286,099) (10,286,099)

15,029,367 15,029,367 (13,814,791) (13,814,791)

240,134 240,134

394,669 394,669

4,944,714 4,944,714

1,609,245 1,609,245

Disposal Disposal of of property, property, plant plant and and equipment equipment Movement in investments and short-term Movement in investments and short-term deposits deposits

(87,619) (87,619) 460 460

(14,145) (14,145) --

11,374,785 11,374,785

(1,861,694) (1,861,694)

Net Net cash cash provided provided by by // (used (used in) in) investing investing activities activities

11,287,626 11,287,626

(1,875,839) (1,875,839)

Net increase increase // (decrease) (decrease) in in cash cash held held Net Cash at at the the beginning beginning of of the the financial financial year year Cash

16,232,340 16,232,340 2,343,109 2,343,109

(266,594) (266,594) 2,609,703 2,609,703

18,575,449 18,575,449

2,343,109 2,343,109

Cash Cash flows flows from from operating operating activities activities Receipts Receipts from from customers customers Payments to suppliers Payments to suppliers and and employees employees Interest Interest received received Net cash cash provided provided by by operating operating activities activities Net

15 15

Cash Cash flows flows from from investing investing activities activities Acquisition of property, plant Acquisition of property, plant and and equipment equipment

Cash Cash at at the the end end of of the the financial financial year year

4 4

Page 8 8 of of 22 22 Page

31

The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS General information and statement of compliance The financial report includes the consolidated financial statements and notes of The Australian Council on Healthcare Standards Limited (“the Company”) and its

Contracts with customers are presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and

Consolidated Statement of Cash Flows for the yeartheended 30 payment.

June 2020 customer's Customer acquisition costs controlled entities (collectively referred to as the “Group”).

The consolidated financial statements for the year ended 30 June 2020 were approved and authorised for issue by the board of directors on 22 October 2020.

The Board has the power to amend and re-issue the financial report.

Note 1: Statement of significant accounting policies The financial report covers the consolidated entity consisting of the Company and its controlled entities.

The Company is a company limited by guarantee, incorporated and domiciled in Australia. The Company is a not-for-profit entity for the purpose of preparing financial statements.

New or amended Accounting Standards and Interpretations adopted The Company has adopted all of the new or

and costs to fulfil a contract can, subject to certain

criteria, be capitalised as an asset and amortised over the contract period.

AASB 16 Leases The Company has adopted AASB 16 from 1 July 2019.

The standard replaces AASB 117 'Leases' and for lessees eliminates the classifications of operating leases and finance leases. Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position. Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117.

amended Accounting Standards and Interpretations

However, EBITDA (Earnings Before Interest, Tax,

issued by the Australian Accounting Standards Board

Depreciation and Amortisation) results improve as the

('AASB') that are mandatory for the current reporting

operating expense is now replaced by interest

period. Any new or amended Accounting Standards

expense and depreciation in profit or loss. For

or Interpretations that are not yet mandatory have not

classification within the statement of cash flows, the

been early adopted.

interest portion is disclosed in operating activities and the principal portion of the lease payments are

The following Accounting Standards and

separately disclosed in financing activities. For lessor

Interpretations are most relevant to the Company:

accounting, the standard does not substantially change how a lessor accounts for leases.

AASB 15 Revenue from Contracts with Customers The Company has adopted AASB 15 from 1 July 2019.

AASB 1058 Income of Not-for-Profit Entities

The standard provides a single comprehensive model

The Company has adopted AASB 1058 from 1 July

for revenue recognition. The core principle of the

2019. The standard replaces AASB 1004 'Contributions'

standard is that an entity shall recognise revenue to

in respect to income recognition requirements for not-

depict the transfer of promised goods or services to

for-profit entities. The timing of income recognition

customers at an amount that reflects the

under AASB 1058 is dependent upon whether the

consideration to which the entity expects to be

transaction gives rise to a liability or other performance

entitled in exchange for those goods or services. The

obligation at the time of receipt. Income under the

standard introduced a new contract-based revenue

standard is recognised where: an asset is received in a

recognition model with a measurement approach

transaction, such as by way of grant, bequest or

that is based on an allocation of the transaction price.

donation; there has either been no consideration

This is described further in the accounting policies

transferred, or the consideration paid is significantly

below. Credit risk is presented separately as an

less than the asset's fair value; and where the intention

expense rather than adjusted against revenue.

is to principally enable the entity to further its Page 9 of 22

32

NOTES TO THE FINANCIAL STATEMENTS

The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS

objectives. For transfers of financial assets to the entity

which enable it to acquire or construct a recognisable

non-financial asset, the entity must recognise a liability amounting to the excess of the fair value of the General information and statement of transfer received over any related amounts compliance recognised.

Related amounts recognised may relate The financial report includes the15consolidated to contributions by owners, AASB revenue or financial statements andrecognised, notes of The Australian on contract liability lease liabilitiesCouncil in accordance with AASB Limited 16, financial in and Healthcare Standards (“theinstruments Company”) accordance AASB(collectively 9, or provisions in accordance its controlledwith entities referred to as the with AASB 137.

The liability is brought to account as “Group”). income over the period in which the entity satisfies its performance obligation. If the transaction does not The consolidated financial statements for the year enable the entity to acquire or construct a ended 30 June 2020 wereasset approved authorised recognisable non-financial to be and controlled by for issue theany board of directors on carrying 22 October the entity,by then excess of the initial amount of the recognised asset over the related 2020. The Board has the power to amend and re-issue amounts is recognised the financial report. as income immediately. Where the fair value of volunteer services received can be measured, a private sector not-for-profit entity can Note 1: Statement of significant elect to recognise the value of those services as an accounting policies asset where asset recognition criteria are met or The financial report the covers the otherwise recognise value asconsolidated an expense. entity

consisting of the Company and its controlled entities.

Impact of adoption The Company is a company limited by guarantee, AASB 15, AASB 16 AASB 1058 were adopted using incorporated andand domiciled in Australia.

The Company the modified retrospective approach and as such is a not-for-profit entity for the purpose of preparing comparatives have not been restated. There was no financial statements. impact on opening retained profits as at 1 July 2019.

New orofamended a) Basis preparationAccounting

Standards

The report is a general purpose financial andfinancial Interpretations adopted

report that has been prepared The Company has adopted allinofaccordance the new or with: amended

Accounting Standards and Interpretations issued Applicable Accounting Standards by• the AustralianAustralian Accounting Standards Board – Reduced Disclosure Requirements of the (‘AASB’) that are mandatory for the current reporting Australian Accounting Standards BoardStandards (“AASB”), period.

Any new or amended Accounting and the or Interpretations that are not yet mandatory have not • Australian Charities and Not-for-profits been early adopted.

Commission Act 2012.

The following Accounting Standards and Interpretations are most relevant periods presented in these financial statements and to the Company: have been applied consistently.

The accounting policies have been applied to all

The financial report has been prepared in Australian dollars on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the

b)

Basis of consolidation

All inter-company balances and transactions between entities in the Group, including unrealised surpluses or deficits, have been eliminated on consolidation.

Accounting policies of subsidiaries are changed where

AASB 15 Revenue from Contracts with necessary to ensure consistency with policies applied Customers by the parent entity.

The Company has adopted AASB 15 from 1 July 2019.

The standard provides a single comprehensive c) Property, plant and equipment model for revenue recognition.

Thebrought core principle of Property, plant and equipment are to the standard is that entityapplicable, shall recognise account at cost, less,an where any revenue to depict the transfer of promised goods orlosses plus accumulated depreciation and impairment costs incidental to acquisition. services to customers at an amount that reflects the consideration to which the entity expects to be The carrying amount of plantor and entitled in exchange forproperty, those goods services. The equipment is reviewed annually by the Boardrevenue to standard introduced a new contract-based ensure that it is not in excess of the recoverable recognition model with a measurement approach that assets. of the transaction price. This isamount based of onthese an allocation is described further in the accounting policies below.

The recoverable amount is assessed on the basis of the Credit risk is presented separately as an expected net cash flows which will be received from expense rather than adjusted against revenue. the assets’ employment and subsequent disposal.

Contracts with customers are presented in an entity’s The expected net cash flows have not been statement of financial position as a contract liability, discounted to present values in determining a contract asset, or a receivable, depending on the recoverable amount. relationship between the entity’s performance and the customer’s payment. Customer acquisition costs Depreciation and to fulfilamount a contract subject certain The costs depreciable of allcan, fixed assets, to excluding criteria, capitalised as an asset on anda amortised freeholdbe property, are depreciated straight lineover the contract period. basis over their estimated useful lives to the Group commencing from the time the asset is held ready for

AASB 16 Leases use.

The Company has adopted AASB 16 from 1 July The useful used for each class of 117 depreciable 2019.

The lives standard replaces AASB ‘Leases’ assets and forare: lessees eliminates the classifications of operating leases and finance leases. Except of fixed leases assets and leases ofDepreciation forClass short-term low-value rate Computer and IT Equipment 3 years assets, right-of-use assets and corresponding Office Equipment 5 years lease liabilities are recognised in the statement FittingsStraight-line operating 10 years lease ofFurniture financialand position.

Freehold Building is replaced with 40 a years expense recognition depreciation Building 10 - 30 years charge forImprovements the right-of-use assets (included in The asset’s residual values and useful lives are reviewed and adjusted if appropriate at each balance date.

fair values of the consideration given in exchange for assets.

Page 10 of 22

33

The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS An asset’s carrying amount is written down

economic benefits will result and that outflow can be

reliably measured.

Notes to tothe financial statements continued... immediately its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

AASB 1058 Income of Not-for-Profit Entities

The Company has adopted AASB 1058 from 1 d) Impairment of assets July 2019. The standard replaces AASB 1004 At each reporting date, the Group reviews the ‘Contributions’ in respect to income recognition carrying values of its tangible assets to determine requirements for not-for-profit entities. whether there is any indication that those assets have been impaired. If such an indication exists, the

Therecoverable timing of income recognition under AASB 1058 is amount of the asset, being the higher of dependent upon whether the transaction gives riseinto the asset’s fair values less costs to sell, and value use, a liability or othertoperformance obligation at Any the time is compared the asset’s carrying value. excess of receipt.

Income under the standard is recognised of the asset’s carrying value over its recoverable where: an asset is received in aand transaction, such amount is expensed to profit loss. as by way of grant, bequest or donation; there has e) been Income tax either no consideration transferred, or the The Company received confirmation the consideration paidhas is significantly less than from the asset’s Office that itsisincome is exempt fair Australian value; andTaxation where the intention to principally fromthe income Section 50-5 of the enable entitytax to pursuant further itstoobjectives.

Income Tax Assessment Act 1997 and accordingly the

does not have anytoliability for income For Company transfers of financial assets the entity which tax. enable it to acquire or construct a recognisable The Controlled is a taxable entity. The a charge non-financial asset,Entity the entity must recognise liabilityfor current tax expense is based on the profit for the year amounting to the excess of the fair value of the adjusted for any non-assessable or disallowed items. It transfer received over any related amounts recognised. is calculated using the tax rates that are applicable during the financial year.

Related amounts recognised may relate to contributions by owners, AASB 15 revenue or contract liability f) Employee benefits recognised, lease liabilities in accordance with AASB Liabilities for wages and salaries, annual leave and 16, financial instruments in accordance with AASB 9, related on-costs are recognised and measured as the or provisions in accordance with AASB 137. amount unpaid in respect of employees’ services up to that date.

The liability is brought to account as income over the period which the entity performance The in Long Service Leavesatisfies provisionits is based on the obligation. remuneration rates at year end for all employees plus related on costs. It is considered that this

If the transaction technique does not enable theresults entity not to acquire measurement produces or construct recognisable non-financial asset to be materiallyadifferent from the estimate determined by using the value basis ofexcess measurement. controlled bypresent the entity, then any of the initial Contributions are made by the Group to employee superannuation funds and are charged as expenses

h)

Cash and cash equivalents

Impact Cash of andadoption cash equivalents include cash on hand,

AASB 15, AASB AASB 1058and were adopted deposits held16 at and call with banks, bank overdrafts. usingBank the overdrafts modified retrospective approach andborrowings as are shown within short-term current liabilities on not the been balance sheet. suchincomparatives have restated.

There was no impact on opening retained profits as i) Trade at 1 July 2019.and other receivables Other receivables are recognised at amortised cost,

less anyof provision for impairment. a) Basis preparation

The financial report is a general purpose financial j) that Goods and services taxin(“GST”) report has been prepared accordance with: Revenues, expenses and assets areStandards recognised • Applicable Australian Accounting – net of the amount of GST, except for the following: Reduced Disclosure Requirements of the Australian Accounting Standards Board (“AASB”), and the • Where amount of GST incurred is not recoverable • Australian Charities and Not-for-profits from the Australian Taxation Office. If so, it is Commission Act 2012.

recognised as part of the cost of acquisition of the asset or as part of an item of expense;

The accounting policies have been applied to all • Receivables and payables are stated including the periods presented in these financial statements amount of GST. and have been applied consistently. k)

Revenue from contracts with customers

The financial has been prepared Australian Revenue report is recognised at an amountinthat reflects the dollars on an accruals basis and is based on historical consideration to which the Group is expected to be costsentitled and does not take for intotransferring account changing in exchange goods or money services values or,customer. except where stated, current valuations of the to a For each contract with a customer, non-current assets. the Cost is based onathe fair values Group identifies contract with customer; of the consideration given in exchange forinassets. identifies the performance obligations the contract; allocates the transaction price to the separate

performance obligations on the basis of the relative b) Basis of consolidation

stand-alone selling price and of each distinct good or All inter-company balances transactions between service to Group, be delivered; andunrealised recognises surpluses revenue when entities in the including or as each obligation is satisfied in a or deficits, haveperformance been eliminated on consolidation. manner policies that depicts the transfer are to the customer of Accounting of subsidiaries changed where the goods or services promised. necessary to ensure consistency with policies applied by the parent entity.

All revenue is stated net of the amount of goods and

services tax (“GST”). c) Property, plant and equipment l)

Trade and other creditors

Liabilities are recognised for goods or services received

when incurred.

prior to the end of the reporting period and which are

g)

paid within 30 days of recognition.

Provisions

unpaid. The amounts are unsecured and are usually

Provisions are recognised when the Group has a legal or constructive present obligation, as a result of past events, for which it is probable that an outflow of

34

Page 11 of 22

The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS m) Interest revenue Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and

The recoverable amount is assessed on the basis of allocating the interest income over the relevant period the expected net cash flows which will be received using the effective interest rate, which is the rate that from the assets’ employment and subsequent exactly discounts estimated future cash receipts disposal. through the expected life of the financial asset to the net carrying amount of the financial asset.

The expected net cash flows have not been discounted to present values in determining recovern) JobKeeper and Cash Flow Boost able amount.

JobKeeper and Cash Flow Boost revenue is recognised when the rights to receive the revenue have been

Depreciation established.

The depreciable amount of all fixed assets, excluding freehold property, areother depreciated a straight line o) Investments and financial on assets basis over their useful livesare to initially the Group Investments and estimated other financial assets measured at fair value. costs commencing from the Transaction time the asset is are heldincluded ready as forpart use.of the initial measurement, except for financial assets at fair value through profit or loss. Such assets

are measured at either cost or Thesubsequently useful lives used for each classamortised of depreciable fair value depending on their classification. assets are:

Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the

whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

recoverable amount.

Where there has not been a significant increase in

d) Impairment of since assets exposure to credit risk initial recognition, a 12-

month is estimated.

At eachexpected reporting credit date, loss the allowance Group reviews the This represents of the assets asset's lifetime carrying valuesaofportion its tangible to determine expected credit losses that is attributable a default whether there is any indication that thosetoassets have event that is possible within the next 12 months.

Where been impaired. If such an indication exists, the a financial asset has of become credit impaired or where recoverable amount the asset, being the higher of it is determined that credit risk has increased the asset’s fair values less costs to sell, and value in significantly, the loss based on the asset's use, is compared to allowance the asset’siscarrying value. lifetime expected losses.

The amount of its Any excess of the credit asset’s carrying value over expected credit loss recognised is measured on the recoverable amount is expensed to profit and loss. basis of the probability weighted present value of anticipated cash shortfalls over the life of the

e) Income tax

instrument discounted at the original effective interest

The Company has received confirmation from the rate.

Australian Taxation Office that its income is exempt from income tax pursuant to Section 50-5 of the For financial assets mandatorily measured at fair value Income Tax Assessment Act 1997 and accordingly the through other comprehensive income, the loss Company not haveinany liability for income tax. allowancedoes is recognised other comprehensive income with a corresponding expense through profit

receive cash flows have expired or have been

The Controlled Entity is athe taxable entity. The charge for or loss.

In all other cases, loss allowance reduces current tax expense is based on the profit for the asset's carrying value with a corresponding the year adjusted any non-assessable or disallowed items. expense for through profit or loss.

It is calculated using the tax rates that are applicable during the financial year.judgements, estimates and p) Critical accounting

andthe adjusted appropriate at each balance date. is no all risks andif rewards of ownership.

When there

preparationbenefits of the financial statements requires f)The Employee

financial asset unless an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to

The asset’sand residual valueshas andtransferred useful lives are reviewed transferred the Group substantially reasonable expectation of recovering part or all a

The asset’s residual values and isuseful lives financial asset, it's carrying value written off. are

reviewed and adjusted if appropriate at each balance Financial assets at fair value through other date. comprehensive income

Financial assets at fair value through other An asset’s carrying amount is written down

comprehensive include amount equity investments immediately to income its recoverable if the asset’s which theamount consolidated entity intends to hold for the carrying is greater than its estimated foreseeable future and has irrevocably elected to

assumptions

management to make estimates Liabilities for wages andjudgements, salaries, annual leaveand and assumptions that are affect the reported in the related on-costs recognised andamounts measured as the financialunpaid statements.

Management continually amount in respect of employees’ services up evaluates its judgements and estimates in relation to to that date. assets, liabilities, contingent liabilities, revenue and

expenses.

Management its judgements, The Long Service Leave bases provision is based on the estimates and assumptions on historical experience remuneration rates at year end for all employees plus and on other various factors, including expectations of related on costs. It is considered that this future events, management believes to be reasonable

classify them as such upon initial recognition.

under the circumstances. The resulting accounting

Impairment of financial assets

related actual results. The judgements, estimates and

The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss

judgements and estimates will seldom equal the assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

allowance depends upon the consolidated entity's assessment at the end of each reporting period as to

Page 12 of 22

35

The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS Critical accounting judgements, estimates and

Notes to (continued) the financial statements continued... assumptions Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the

h) Cash equivalents impactsand that cash the Coronavirus (COVID-19) pandemic

Cash and cash equivalents cash on hand, has had, or may have, oninclude the Group based on known deposits held atThis callconsideration with banks, and bank information. extends tooverdrafts. the nature of Bank are shown short-term theoverdrafts products and serviceswithin offered to customers, supply borrowings in current on regions the balance sheet. chain, staffing and liabilities geographic in which the

m) Interest revenue

number of accreditation on-siteat assessments Other receivables are recognised amortised cost, and lessdomestically any provision forinternationally, impairment. therefore the

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

has been deferred to the future.

Due to the dynamic j) Goods and services tax (“GST”)

n) JobKeeper and Cash Flow Boost

Group operates. COVID-19 restrictions have impacted

travel, face face meetings, sales and delayed a i) Trade and to other receivables

revenue recognition of those performance obligations

nature of the pandemic there are with Revenues, expenses and assets are uncertainties recognised net respect to events or conditions which may impact the of the amount of GST, except for the following: Group’s future financial performance, the impact of • Where amount of GST incurred is not this will be reported in future reporting periods. recoverable from the Australian Taxation Office.

If so, it is recognised as part of the cost of Allowance for expected credit losses acquisition of the asset or as part of an item The allowance for expected credit losses assessment of expense; requires a degree of estimation and judgement. It is • Receivables and payables are stated including based on the lifetime expected credit loss, grouped • the amount of GST. based on days overdue, and makes assumptions to

allocate an overall expected credit loss rate for each

k) Revenue contracts customers group. Thesefrom assumptions includewith recent sales

Revenue is recognised at ancollection amount that reflects the experience and historical rates. consideration to which the Group is expected to be Estimation of useful lives of assets entitled in exchange for transferring goods orlives services The Group determines the estimated useful and to arelated customer.

For each contract with a customer, depreciation and amortisation charges for its the property, Group identifies theequipment contract with customer; plant and andafinite life identifies the performance obligations in the contract; intangible assets. The useful lives could change allocates the transaction price to the innovations separate or significantly as a result of technical some other event. The on depreciation and performance obligations the basis of theamortisation relative charge will increase where the distinct useful lives areor less than stand-alone selling price of each good previously estimated lives, or technically obsolete or service to be delivered; and recognises revenue when non-strategic assets that have been abandoned or or as each performance obligation is satisfied in sold willthat be written ortransfer written down. a manner depictsoff the to the customer of the goods or services promised.

Employee benefits provision

As discussed in note1 (f), the liability for employee

All revenue is stated net of the amount of goods and

benefits expected to be settled more than 12 months from the reporting date are recognised and measured a to be made in respect of all employees at the

JobKeeper and Cash Flow Boost revenue is recognised when the rights to receive the revenue have been established.

o) Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification.

Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all a financial asset, it’s carrying value is written off.

Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income include equity investments which the

reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

Page 13 of 22

36

The HealthcareStandards StandardsLimited Limited TheAustralian Australian Council Council on on Healthcare

NOTES STATEMENTS NOTESTO TO THE THE FINANCIAL FINANCIAL STATEMENTS m) Interest revenue

Interest revenue is recognised as interest accrues using Note 2: Revenue the effective interest method. This is a method of Membership fees calculating the amortised cost of a financial asset and consolidated entity intends hold for the foreseeable Improvement Academy andtoover consultancy allocating the interest income the relevant period

future and has irrevocably elected to classify them as

using the effective interest rate, which is the rate that Projects such upon initial estimated recognition. exactly discounts future cash receipts Publications

through the expected life of the financial asset to the Other net carrying amount of the financial asset.

Impairment of financial assets Revenue from contracts with customers

The Group recognises a loss for expectn) JobKeeper and Cash Flow allowance Boost Other Revenue ed credit losses on financial assets which are either JobKeeper and Cash Flow Boost revenue is recognised JobKeeper measured at amortised cost or fair value through when the rights to receive the revenue have been other comprehensive established.

Cash Flow Boostincome. The measurement of the loss

allowance depends upon the consolidated entity’s Grants received o) Investments and other financial assets period as to assessment at the end of each reporting Other Investments and other instrument’s financial assets are initially whether the financial credit risk has Total other revenue measured at fair value.

Transaction costs are included increased significantly initial recognition, based Interest received using since the effective interest method as part of the initial measurement, except for financial on reasonable and supportable information that is Total operating revenue assets at fair value through profit or loss.

Such assets available, without undue cost or effort to obtain.

Consolidated whether the financial instrument's credit risk has 2020 $ 2019 $ increased significantly since initial recognition, based on reasonable and supportable information that is 11,183,386 12,181,961 available, without undue cost or effort to obtain. assumptions that affect the reported amounts in the 622,150 1,333,525

financial statements.

Management continually Where there has not been a significant increase evalinuates its judgements and estimates in relation exposure to credit risk since initial recognition, a to 12370 1,539 assets, liabilities, credit contingent liabilities,isrevenue and month expected loss allowance estimated.

565,692 569,910 expenses.

Management bases its judgements, This represents a portion of the asset's lifetime estimates assumptions historical 14,086,935 expected and credit losses12,371,598 that ison attributable to a default experience on other various factors, including event that isand possible within the next 12 months.

Where a financial asset has become impaired believes or where expectations of future events,credit management 459,407 it isbe determined credit has increased to reasonablethat under therisk circumstances.

50,000 significantly, loss allowance is based on estimates the asset's The resultingthe accounting judgements and lifetime expected credit losses.actual The of will seldom equal the related results.

- amount 108,300 expected credit loss recognised is measured onthat the The judgements, estimates and assumptions 16,081 19,690 basis of the probability weighted present value of

Critical accounting 525,488 judgements, 127,990 estimates anticipated cash shortfalls over the life of the and assumptions (continued) 240,134 394,669 instrument discounted at the original effective interest 13,137,220 14,609,594 rate.

Coronavirus (COVID-19) pandemic

are subsequently measured atthe either amortised cost or AASB 15 was adopted using modified retrospective approach and as such comparatives have not been Judgement has been exercised in considering the financial assets fair value depending on their classification. provided for disaggregation of revenue, there is no impact toFor the recognition ofmandatorily revenue. measured at fair value Where there has not been a significant increase in impacts Coronavirus (COVID-19) through that otherthe comprehensive income, the pandemic loss Classification is determined based on both the

exposure to credit risk since initial recognition, a

has had, or ismay have, oninthe Group based on known allowance recognised other comprehensive business model within which such assets are held and Note 3. Expenses 12-month expected credit loss allowance is estimatinformation. consideration extends to theprofit nature income withThis a corresponding expense through the contractual cash flow characteristics of the Surplus income tax includes following specific expenses: ed.

Thisbefore represents a portion of the the asset’s lifetime of the products and services offered to customers, or loss. In all other cases, the loss allowance reduces financial asset unless an accounting mismatch is being Cost of sales expected credit losses that is attributable to a default supply chain, staffing andwith geographic regions in which the asset's carrying value a corresponding avoided. event that iscosts possible within the next 12 months.

Assessment 3,976,596 the Groupthrough operates.

COVID-19 have expense profit or1,865,175 loss. restrictions Where a financial asset has become credit impaired

Financial assets are derecognised when the rights to or wherecash itbenefit isflows determined that credit risk has increased Employee expenses receive have expired or have been

significantly, thethe loss allowance is basedsubstantially on the asEmployee benefit expenses transferred and Group has transferred set’s lifetime expected credit losses.

The of Superannuation all the risks and rewards of ownership. Whenamount there is no

expected credit loss recognised is measured reasonable expectation of recovering part or allon a the Total employee benefit expenses basis of the probability weighted present value of anfinancial asset, it's carrying value is written off.

ticipated cashand shortfalls over the life of the instrument Depreciation amortisation expense discounted at the original effective interest rate.

Financial assetsexpense at fair value through other Depreciation comprehensive income

Financial assets at fairmandatorily value through other at fair value For financial assets measured Note 4: Cash comprehensive income includeincome, equity investments through other comprehensive the loss allow-

Cash is on hand which the consolidated entitycomprehensive intends to hold for the ance recognised in other income Cash at bank foreseeable future and has irrevocably elected to with a corresponding expense through profit or loss. classify themcases, as such upon recognition.

Total In all cash other the lossinitial allowance reduces the

asset’s carrying value with a corresponding expense

Impairment of financial through profit or loss. assets Note 5: Current assetsa-loss Trade and other The Group recognises allowance forreceivables expected

Trade losses debtors credit on financial assets which are either p) Critical accounting judgements, Other receivablesJobKeeper measured at amortised cost or fair value through other

estimates and assumptions

comprehensive The measurement of the loss Totalpreparation trade andincome. other The of thereceivables financial statements requires allowance depends upon the consolidated Less: Allowance for expected credit loss entity's

management to make judgements, estimates and

assessment at the end of each reporting period as to Total current assets – trade and other receivables

impacted travel, face to face meetings, sales and dep) Critical accounting judgements, estimates and layed a number of accreditation on-site assessments assumptions 5,880,501therefore 5,621,991 domestically and internationally, the revenue The preparation of the financial statements requires 524,244 501,353 recognition of those performance obligations has been management to make judgements, estimates and deferred to the future. Due to the dynamic nature of 6,404,745 6,123,344 assumptions affect reported amounts in theto the pandemicthat there are the uncertainties with respect financial statements.

Management continually events or conditions which may impact the Group’s evaluates its judgements and the estimates in relation to be future financial performance, this will 132,641impact of 148,607 assets, liabilities, contingent liabilities, revenue and reported in future reporting periods. expenses. Management bases its judgements,

estimates and assumptions on historical experience Allowance for expected credit losses

and on other various factors,21,542 including expectations 15,890 of

The allowance for expected credit losses assessment future events, management believes to be reasonable 18,553,907 2,327,219 requires a degree of estimation and judgement. It is under the circumstances.

The resulting accounting 18,575,449 2,343,109 based on the lifetime expected credit loss, grouped judgements and estimates will seldom equal the based on days overdue, and makes assumptions to related actual results. The judgements, estimates and allocate an overall expected credit loss rate for each assumptions that have a significant risk of causing a group.

These assumptions include amounts recent sales expe1,548,475 2,381,936 material adjustment to the carrying of assets rience and historical collection rates. and liabilities (refer to the respective 153,000 notes) within the Estimation of useful lives of assets next financial year are discussed below.

1,701,475 2,381,936 The Group determines the estimated useful lives and (308,961) related depreciation and (319,321) amortisation charges for its 1,382,154

2,072,975 Page 12 of 22

Page 14 of 22

37

The StandardsLimited Limited TheAustralian AustralianCouncil Councilon on Healthcare Healthcare Standards

NOTES NOTESTO TOTHE THEFINANCIAL FINANCIAL STATEMENTS STATEMENTS

Note 5: Current assets - Trade and other economic benefits will result and that outflow can be An asset’s carrying amount is written downreceivables (continued) Impairment of receivables reliably measured. immediately to its recoverable amount if the asset’s

Notes to the financial statements continued...

The consolidated has notitsrecognised carrying amount is entity greater than estimated a loss in respect of impairment of receivables for the year ended 30 June 2020. h) Cash and cash equivalents recoverable amount. property, plant and equipment and finite life intangible Employee provision Cash andbenefits cash equivalents include cash on hand, Consolidated

assets. The useful lives could change significantly as d) Impairment of assets a result of technical innovations or some other event.

At each reporting date, the Group reviews the Opening balance carrying values of its tangible assets to determine

TheCredit depreciation amortisation charge notes whether there and is any indication that thosewill assets have increase theIfuseful lives are lessexists, than the Additional provisions been where impaired. such an indication previously estimated lives, or technically Unused amounts reversed recoverable amount of the asset, beingobsolete the higher of or non-strategic have to been Closing balance the asset’s fairassets values that less costs sell, abandoned and value in use, or sold will be written or written down. is compared to the off asset’s carrying value. Any excess of the6:asset’s carrying value over its recoverable Note Financial assets amount is expensed to profit and loss.

Current assets

As discussed in note1 thebanks, liability employee deposits held at call(f), with and overdrafts.

2020 $ forbank 2019 $ benefits beshown settledwithin moreshort-term than 12 months Bankexpected overdraftstoare borrowings 308,961 sheet.

310,958 current liabilities therecognised balance frominthe reporting dateonare and measured (2,680) a to be made in respect of all employees at the 10,360 i) Trade other receivables reporting date.and In determining the present value 683 of the Other receivables are recognised at amortised cost, liability, estimates of attrition rates and pay increases less any provision forinflation impairment.

319,321 308,961 through promotion and have been taken into account. j)

Goods and services tax (“GST”)

Revenues, expenses and assets are recognised net of

the amount of GST, except for the - following: 14,372,997 Financial assets held to maturity investments (term deposits) e) Income tax Non-current assets • Where amount of GST incurred is not recoverable The Company has received confirmation from the 2,969,323 Financial assets at fair value through other comprehensive income from the Australian Taxation Office. If so, it is Australian Taxation Office that its income is exempt recognised as part of the cost of acquisition of the from income tax pursuant to Section 50-5 of the Note2:7:Revenue Other assets Note asset or as part of an item of expense; Income Tax Assessment Act 1997 and accordingly the Current • Receivables and payables are stated including the Company does not have any liability for income tax.

Prepayments 50,220 74,632 amount of GST. The Controlled Entity is a taxable entity. The charge for current tax expense is based on the profit for the year Note 8: Plant and equipment adjusted for any non-assessable Furniture and fittings – at cost or disallowed items. It is calculated using the tax rates that are applicable Less: Accumulated depreciation during the financial year.

Net book value

k)

Revenue from contracts with customers

f) Employee benefits Office equipment– at cost Liabilities for wages and salaries, annual leave and Less: Accumulated depreciation related on-costs are recognised and measured as the Net book value amount unpaid in respect of employees’ services up to that date.

Information technology – at cost

Group identifies the contract with a customer; 45,954 45,954 identifies the performance obligations in the contract; (45,954) (45,954) allocates the transaction price to the separate performance obligations on the basis of the relative

The Less: LongAccumulated Service Leave depreciation provision is based on the Net book value remuneration rates at year end for all employees plus

(200,340) or as each performance(221,637) obligation is satisfied in a

Revenue is recognised at an amount that reflects the 24,788 22,549 consideration to which the Group is expected to be (22,808) (21,707) entitled in exchange for transferring goods or services 1,980 842 to a customer. For each contract with a customer, the

stand-alone selling price of each distinct good or 307,560 223,724when service to be delivered; and recognises revenue manner that depicts the transfer 85,923to the customer 23,384of

Net book and equipment related onvalue, costs. plant It is considered that this measurement technique produces results not materially different from the estimate determined by Note Land and value building using9: the present basis of measurement.

Land – at cost

the goods or services promised.

87,903

Contributions are made by the Group to employee Building – at costfunds and are charged as expenses superannuation Less: Accumulated depreciation when incurred.

l)

Net book value g) Provisions Provisions are recognised when Building improvements – at costthe Group has a legal or constructive present obligation, as a result of past Less: Accumulated depreciation events, which it is probable that an outflow of Net for book value

694,912 659,276 unpaid. The amounts are unsecured and are usually

Net book value, land and building

24,226

All revenue is stated net of the amount of goods and services tax (“GST”).

380,000

380,000

Trade and other creditors

Liabilities are recognised1,425,454 for goods or services received 1,425,454 prior to the end of the reporting period and which are (766,178) (730,542)

paid within 30 days of recognition.

1,958,409

(1,249,983) 708,426 1,747,702

1,958,409 (1,176,460) 781,949 Page 11 of 22 1,856,861 Page 15 of 22

38

The Australian Council on Healthcare Standards Limited The Australian Council on Healthcare Standards Limited

NOTES TO TO THE THEFINANCIAL FINANCIALSTATEMENTS STATEMENTS NOTES

Movement carrying amounts for Plant and Equipment and Land andthe Building: whether financial instrument's credit risk has m) Interest in revenue increased significantly since initial recognition, based Interest revenue is recognised as interest accrues using Freehold Buildings Furniture Office Information on reasonable and supportable information thatTotal is the effective interest method. This is a method of Land asset and calculating the amortised cost of a financial

undue cost or effort to obtain. andavailable, Fittings without Equipment Technology

AASB 15the was adopted using allocating interest income over thethe relevant period retrospective $ modified $ $ approach $ and as such $ $ comparatives have not been provided for disaggregation of revenue, there is increase no Where there has not been a significant in using the effective interest rate, which is the rate that Balance at 30 June 2018 380,000 1,587,832 2,712 45,005 2,015,549 impact to theestimated recognition of revenue. exposure to credit risk since initial recognition, a 12exactly discounts future cash receipts Additions through the expected life of the financial asset to the Depreciation expense (110,971) net carrying amount of the financial asset. -

Note 3: Expenses

Balance at 30 June 2019

- is estimated. month expected credit- loss allowance (1.870) - of the(35,766) (148,607) This represents a portion asset's lifetime expected credit losses-that is attributable to1,881,087 a default 23,384

380,000 1,476,861 842 Surplus before income tax includes the following specific expenses:

n)Additions JobKeeper and Cash Flow Boost JobKeeper and Cash Flow Boost revenue is recognised Depreciation expense (109,159) when the rights to receive the revenue have been Disposals established.

Balance at 30 June 2020 380,000 1,367,702

event that is possible within the 85,380 next 12 months.

Where 87,619 2,239 a financial asset has become credit impaired or where (22,381) (132,641) (1,101) it is determined that credit risk has increased (460) (460) significantly, the loss allowance is based on the asset's - losses. The 85,923 1,980expected credit lifetime amount1,835,605 of

o)

expected credit loss recognised is measured on the

Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets Note 10: Trade and other payables are subsequently measured at either amortised cost or Accounts payable fair value depending on their classification.

Accrued expenses Classification is determined based on both the Total trade payables business model within which such assets are held and the contractual cash flow characteristics of the financial unless an accounting mismatch is being Note 11:asset Provisions avoided.

Contract costs to complete

Total provisions Financial assets are derecognised when the rights to

Note 4: Cash receive cash flows have expired or have been

transferred and the Group has transferred substantially 12: Contract liabilities allNote the risks and rewards of ownership. When there is no

Future income reasonable expectation of recovering part or all a Recognised income financial asset,future it's carrying value is written off.

Work in progress Recognised in progress Financial assetswork at fair value through other Total contract income liabilities comprehensive Financial assets at fair value through other

basis of the probability weighted present value of anticipated cash shortfalls over the life of the Consolidated instrument discounted at the original effective interest 2020 $ 2019 $ rate.

267,114 581,384 For financial assets mandatorily measured at fair value 113,883 41,182 through other comprehensive income, the loss 622,566 allowance is recognised in 380,997 other comprehensive

income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding 47,206 94,132 expense through profit or loss.

47,206 94,132 p)

Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires 25,256,319 estimates 26,412,042 management to make judgements, and

(17,324,924) (20,603,653) assumptions that affect the reported amounts in the (4,017,677) continually (5,644,077) financial statements. Management evaluates its judgements 5,518,145 and estimates in7,541,492 relation to assets, liabilities, contingent liabilities, revenue and 9,431,863 7,705,804 expenses. Management bases its judgements,

Note 5: Current assets - Trade and other receivables estimates and assumptions on historical experience

comprehensive income include equity investments Note 13: Employee benefits which the consolidated entity intends to hold for the Current foreseeable future and has irrevocably elected to Annual leave classify them as such upon initial recognition.

Long service leave

Superannuation Impairment of financial assets Total current employee benefits The Group recognises a loss allowance for expected credit losses on financial assets which are either Non-current measured at amortised cost or fair value through other Long service leave comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to

and on other various factors, including expectations of future events, management believes to be reasonable 669,944 509,099 under the circumstances. The resulting accounting

541,360 judgements and estimates 642,068 will seldom equal the 6,346 2,260 related actual results. The judgements, estimates and assumptions that have a 1,318,358 significant risk of1,052,719 causing a

material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

77,809

120,359

Page1612ofof22 22 Page

39

The Australian Council on Healthcare Standards Limited The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

Note 14: Key management disclosures economic benefits will result and that outflow can be An asset’s carrying amount ispersonnel written down Compensation reliably measured. immediately to its recoverable amount if the asset’s The aggregate compensation made to key management personnel of the consolidated entity is set out carrying amount is greater than its estimated below: h) Cash and cash equivalents recoverable amount.

Note 5: Current assets - Trade and other receivables (continued) Cash and cash equivalents include cash on hand, Consolidated deposits held at call with banks, 2020and $ bank overdrafts.

2019 $ d) Impairment of assets Bank overdrafts are shown within short-term borrowings Impairment of receivables Aggregate compensation 1,329,317 1,305,665 At each reporting date, the Group reviews the in current liabilities on the balance sheet.

Thecarrying consolidated has not assets recognised a loss in respect of impairment of receivables for the year valuesentity of its tangible to determine

Notes to the financial statements continued...

whether there is any indication that those assets have ended 30 June 2020

Note 15: Reconciliation of cash flow from operations with operating Surplus i) Trade andafter other receivables been impaired. If such an indication exists, the income tax Other receivables are recognised at amortised cost, recoverable amount of the asset, being the higher of 2,138,250 Surplus for the year 2,436,188 less any provision for impairment. the asset’s fair values less costs to sell, and value in use, is compared to the asset’s carrying value. Any excess Non-cash flows in operating surplus of the asset’s carrying value over its recoverable

Depreciation amount is expensed to profit and loss.

Changes in assets and liabilities e) Income tax (Increase)/Decrease in assets The Company has received confirmation from the Trade and term debtors Australian Taxation Office that its income is exempt Prepayments from income tax pursuant to Section 50-5 of the Income Tax Assessment 1997 and accordingly the Increase/(Decrease) inAct liabilities Company does not have any liability for income tax.

Other liabilities Movement in WIP/Unearned income The Controlled Entity is a taxable entity. The charge for Trade creditors and accruals current tax expense is based on the profit for the year Employee benefits assets Note 6: Financial adjusted for any non-assessable or disallowed items. It Total cash flows from operating activities is calculated using the tax rates that are applicable

j)

Goods and services tax (“GST”) 132,641 148,607 Revenues, expenses and assets are recognised net of the amount of GST, except for the following: •

Where amount of GST incurred is not recoverable from the Australian Taxation Office. If so, it is 690,820 (516,561) recognised as part of the24,413 cost of acquisition of the 30,896 asset or as part of an item of expense;

•

Receivables and payables are stated including (46,927) (28,705) the amount of GST.

1,726,059

(66,286)

(241,569) (276,939) Revenue from contracts with customers 223,089 179,983 Revenue is recognised at an amount that reflects the 4,944,714 1,609,245 consideration to which the Group is expected to be

k)

entitled in exchange for transferring goods or services during the financial year.

Note 16: Remuneration of Board members and other Councillors to a customer. For each contract with a customer, the

The Board of Directors on Healthcare Standards during the Group identifies the contractLimited with a customer; f) Employee benefits and Councillors of The Australian Council financial year are listed in the Annual Report of the Board. identifies the performance obligations in the contract; Liabilities for wages and salaries, annual leave and allocates the transaction price to the separate related on-costs are recognised and measured as the Apart from amounts received by way of reimbursement for expenses incurred in the attendance performance obligations on the basisatofvarious the relative amount unpaid in respect of employees’ services up

Executive and Committee Member’s meetings, no amounts were received by a price Committee or stand-alone selling of eachMember distinct good or to that date. service to be delivered; and recognises revenue when Councillor in connection with the management of the affairs of the Company. or as each performance obligation is satisfied in a The Long Service Leave provision is based on the

Note 7:17: Other assets Note Related party transactions remuneration rates at year end for all employees plus

manner that depicts the transfer to the customer of

the goods or services promised. there have been no related on costs.

It is considered that this Other than payment of membership fees by entities associated with Directors or Councillors, measurement technique produces results not parties of the Group which require separate disclosure. transactions between the Group and related All revenue is stated net of the amount of goods and materially different from the estimate determined by using the present value basis of measurement.

Note 18: Financial instruments and financial assets

services tax (“GST”).

Financial risk management l) Trade and other creditors Contributions are made by the Group to employee The Group’s financial instruments consist of deposits with banks,are andrecognised accounts receivable Liabilities for goods orand services received superannuation funds and are charged asmainly expenses payable.

The Group does not have any derivatives at 30 Juneprior 2020. to the end of the reporting period and which are when incurred. g)

Provisions

Provisions are recognised when the Group has a legal

unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

or constructive present obligation, as a result of past events, for which it is probable that an outflow of

40

Page 11 of 22 Page 17 of 22

The Australian Council on Healthcare Standards Limited The Australian Council on Healthcare Standards Limited

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS

m) Interest revenue Financial assets is recognised as interest accrues using Interest revenue

Consolidated 2020 $credit risk2019 whether the financial instrument's has $ increased significantly since initial recognition, based

on reasonable information that is Cash and cash equivalents 4 and supportable 18,575,449 2,343,109 the effective interest method. This is a method of available, without undue1,382,154 cost or effort to2,072,975 obtain.

Receivables 5 calculating the amortised cost of a financial asset and Note 8: assets Plant equipment Financial atand fairincome value through comprehensive income 6 2,969,323 allocating the interest over theother relevant period increase in using the effective interest rate, which is the rate thatdeposits) Where there has Financial assets held to maturity investments (term 6 not been a significant 14,372,997 exposure to credit risk since initial recognition, a 12exactly discounts estimated future cash receipts Total financial assets 22,926,926 18,789,081 month expected credit loss allowance is estimated. through the expected life of the financial asset to the This represents a portion of the asset's lifetime net carrying amountatofamortised the financial asset.

Financial liabilities cost: expected credit losses that is attributable to a default 380,997 622,566 Trade and other payables 10 event that is possible within the next 12 months. Where n) JobKeeper and Cash Flow Boost Contract liabilities 12 9,431,863 7,705,804 a financial asset has become credit impaired or where JobKeeper and Cash Flow Boost revenue is recognised Total financial liabilities 9,812,860 8,328,370 it is determined that credit risk has increased when the rights to receive the revenue have been significantly, the loss allowance is based on the asset's established. lifetime expected credit losses. The amount of Note 19: Company details expected credit loss recognised is measured on the o) Investments and other financial assets The registered office and principal place of business is located at: of the probability weighted present value of basis Investments and other financial assets are initially No. 5 Macarthur Street anticipated cash shortfalls over the life of the measured at fair value. Transaction costs are included ULTIMO, NSW 2007 instrument discounted at the original effective interest as part of the initial measurement, except for financial AUSTRALIA rate. assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or For financial assets mandatorily measured at fair value Note 20: Controlled fair value dependingentities on their classification. through otherof comprehensive lossout The consolidated financial based statements incorporate the assets and liabilities the controlledincome, entities the as set Classification is determined on both the allowance is recognised in other comprehensive below: business model within which such assets are held and income with a corresponding expense through profit the contractual cash flow characteristics of the Country of Incorporation Equity reduces Holdings or loss. In all other Equity cases, Holdings the loss allowance financial asset unless an accounting mismatch is being the asset's carrying value with a corresponding avoided.

2020 2019 expense through profit or loss. % % NoteInternational 9:assets Landareand buildingwhen the rights to Financial derecognised ACHS Pty Limited Australia 100 100 p)Hong Critical accounting judgements, estimates and ACHS (Asia Pacific) Private Limited Kong 100 100 receive cash flows have expired or have been assumptions transferred and the Group has transferred substantially The preparation of the financial statements requires all the risks andfinancial rewards statements of ownership. there is no show the The individual ofWhen the parent entity following aggregate amounts. management to make judgements, estimates and reasonable expectation of recovering part or all a assumptions that affect the reported amounts in the financial asset, it's carrying value is written off.

Statement of financial position 2020 $ continually 2019 $ financial statements. Management evaluates its judgements and estimates in relation to Financial assets at fair value through other Current assets 19,651,810 18,788,613 assets, liabilities, contingent liabilities, revenue and comprehensive income Non-current assets 4,804,928 1,881,087 expenses. Management bases its judgements, Financial assets at fair value through other Total assets 24,456,738 estimates and assumptions on historical 20,669,699 experience comprehensive income include equity investments and on other various factors, including expectations Current liabilities 9,937,172 8,430,008 of which the consolidated entity intends to hold for the future events, management77,809 believes to be120,359 reasonable Non-currentfuture liabilities foreseeable and has irrevocably elected to under the circumstances.

The resulting accounting classify them as such upon initial recognition.

Total liabilities 10,014,981 8,550,367 judgements and estimates will seldom equal the Net assets 14,441,757 12,119,333 related actual results. The judgements, estimates and Impairment of financial assets Equity 14,441,757 12,119,333 assumptions that have a significant risk of causing a The Group recognises a loss allowance for expected material adjustment to the carrying amounts of assets credit losses on financial assets which are either Surplus for the year 2,965,571 1,986,267 and liabilities (refer to the respective notes) within the measured at amortised cost or fair value through other Total comprehensive income for the year 2,965,571 1,986,267 next financial year are discussed below. comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's The Group has not entered into any guarantees, in the current or previous financial years, in relation to the debts assessment at the end of each reporting period as to of its subsidiaries.

Page 12 of 22

Page 18 of 22

41

The Australian Australian Council Councilon onHealthcare HealthcareStandards StandardsLimited Limited

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS An asset’s carrying amount is written down

economic benefits will result and that outflow can be

reliably measured.

Notes to tothe financial statements continued... immediately its recoverable amount if the asset’s carrying amount is greater than itsON estimated THE AUSTRALIAN COUNCIL HEALTHCARE STANDARDS recoverable amount.

h)

Cash and cash equivalents

d)

deposits held at call with banks, and bank overdrafts.

Movement in 549 carrying and and Building: A.C.N. 008 773 amounts for Plant and Equipment Cash and cashLand equivalents include cash on hand, Impairment of assets

At each reporting date, the Group reviews the

Responsible declaration carrying values entities of its tangible assets to determine

Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

whether there is any indication that those assets have The responsible entities declare that in the responsible entities’ opinion: i) Trade and other receivables been impaired. If such an indication exists, the Other receivables at amortised cost, recoverable amount of the asset, being higher of the registered • there are reasonable grounds tothe believe that entity is able to are payrecognised all of its debts, as and

less any provision for impairment. when they become due the asset’s fair values less costs to and sell, payable; and valueand in use, • the financial statements and notes for the year ending 30 June 2020 satisfy the requirements of the is compared to the asset’s carrying value. Any excess j) Australian Charities Commission Act 2012. Goods and services tax (“GST”) of the asset’s carrying value and overNot-for-profits its recoverable Revenues, expenses and assets are recognised net of amount is expensed to profit and loss.

Signed in accordance with subsection 60.15(2) of the Australian Charities and Not-for-profit Commission the amount of GST, except for the following: Regulation 2013. e) Income tax • Where amount of GST incurred is not recoverable The Company has received confirmation from the from the Australian Taxation Office. If so, it is

Australian Taxation Office that its income is exempt Responsible person from income tax pursuant to Section 50-5 of the

recognised as part of the cost of acquisition of the asset or as part of an item of expense;

Income Tax Assessment Act 1997 and accordingly the Company does not have any liability for income tax.

The Controlled Entity is a taxable entity. The charge for current tax expense is based on the profit for the year

Receivables and payables are stated including the amount of GST.

k)

Revenue from contracts with customers

adjusted for any non-assessable or disallowed items. It

Revenue is recognised at an amount that reflects the

President during the financial year.

22 October 2020

entitled in exchange for transferring goods or services

Note 10: Trade andAM other payables Professor Len Notaras is calculated using the tax rates that are applicable Sydney f) Employee benefits

Liabilities for wages and salaries, annual leave and related on-costs are recognised and measured as the amount unpaid in respect of employees’ services up

consideration to which the Group is expected to be to a customer. For each contract with a customer, the Group identifies the contract with a customer; identifies the performance obligations in the contract; allocates the transaction price to the separate performance obligations on the basis of the relative

to that date.

stand-alone selling price of each distinct good or

The Long Service Leave provision is based on the

or as each performance obligation is satisfied in a

remuneration rates at year end for all employees plus related on costs. It is considered that this measurement technique produces results not materially different from the estimate determined by

service to be delivered; and recognises revenue when manner that depicts the transfer to the customer of the goods or services promised.

All revenue is stated net of the amount of goods and

using the present value basis of measurement.

services tax (“GST”).

Contributions are made by the Group to employee

l)

Note 11: Provisions

superannuation funds and are charged as expenses

Trade and other creditors

Liabilities are recognised for goods or services received

when incurred.

prior to the end of the reporting period and which are

g)

unpaid. The amounts are unsecured and are usually

Provisions

Provisions are recognised when the Group has a legal or constructive present obligation, as a result of past events, for which it is probable that an outflow of

42

•

paid within 30 days of recognition.

Page 19 of 22

Page 11 of 22

Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000 Postal Address GPO Box 1615 Sydney NSW 2001

Note 12: Contract liabilities

p. +61 2 9221 2099 e. sydneypartners@pitcher.com.au

INDEPENDENT AUDITOR’S REPORT THE AUSTRALIAN COUNCIL ON HEALTHCARE STANDARDS ABN 90 008 549 773 Report on the Audit of the Financial Report Opinion

Note

We have audited the financial report of The Australian Council on Healthcare Standards, “the Registered Entity” and its controlled entities “the Group”, which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income, the 13: Employee benefits consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the responsible entities’ declaration.

In our opinion the financial report of The Australian Council on Healthcare Standards has been prepared in accordance with Division 60 of the Australian Charities and Not-for-profits Commission Act 2012, including: (a) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations) and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion

Note

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Australian Charities and Not for-profits Commission Act 2012 “ACNC Act” and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) “the Code” that are relevant to our audit of the financial 14: Key management personnel disclosures report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Compensation We believe that the audit evidence We have obtained is sufficient and appropriate to provide a basis for our

opinion.compensation made to key management personnel of the consolidated entity is set out below: The aggregate Other Information The directors are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2020, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

Adelaide

Brisbane

Melbourne

Newcastle

Perth

Sydney

Pitcher Partners is an association of independent firms.

An independent New South Wales Partnership. ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

pitcher.com.au

43

INDEPENDENT AUDITOR’S REPORT THE AUSTRALIAN COUNCIL ON HEALTHCARE STANDARDS ABN 90 008 549 773

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Responsible Entities for the Financial Report The responsible entities of the Registered Entity are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the ACNC Act, and for such internal control as the responsible entities determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the responsible entities are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Registered Entity’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: x

x x x

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the responsible entities.

Conclude on the appropriateness of the responsible entities’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Group to cease to continue as a going concern.

Pitcher Partners is an association of independent firms.

ABN 17 795 780 962.

An independent New South Wales Partnership.

44

INDEPENDENT AUDITOR’S REPORT THE AUSTRALIAN COUNCIL ON HEALTHCARE STANDARDS ABN 90 008 549 773 x

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

x

Obtain sufficient appropriate evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

M A ALEXANDER Partner

PITCHER PARTNERS Sydney

22 October 2020

Pitcher Partners is an association of independent firms.

ABN 17 795 780 962.

An independent New South Wales Partnership.

45

The Australian Council on Healthcare Standards 5 Macarthur Street Ultimo NSW Australia 2007 Telephone 61 2 9281 9955 Facsimile 61 2 9211 9633 E-mail communications@achs.org.au Website www.achs.org.au