EMHS 2023–24 financial summary
Total cost of services (expense limit)
Sourced from statement of comprehensive income
2023-24 target $000
2023-24 actual $000
Variation $000
Net cost of services
Sourced from statement of comprehensive income
2023-24 target $000
2023-24 actual $000
Variation $000
The variance in both the Total Cost of Services and Net Cost of Services is attributable to higher than anticipated expenditures in the 2023/24 financial year, compared to initial estimates. Employee benefits expense increased due to:
a. unfunded salary costs associated with the Nursing Professional Development allowance and payout
b. unfunded COVID-19 related expenditure
c. expenditure on Community and Virtual Care programs exceeding the allocated funding
d. costs arising from patient complexity, including bed sit companions and increased security measures and
e. the financial impact of cost of award increases that led to higher superannuation, penalties, and allowances, not fully covered by existing funding.
Other goods and services expenses increased mainly due to:
f. patient support costs being higher than anticipated, driven by increased expenses in drugs, medical, surgical, and diagnostic supplies
g. increase in purchase of outsourced services primarily due to activity levels surpassing targets, and
h. expenditure on depreciation and amortisation, repairs and maintenance and purchase of consumable equipment exceeded initial estimates, reflecting the ongoing investment in and maintenance of essential assets necessary for Health Service operations.
Total equity
Sourced from statement of financial position
2023-24 target $000
2023-24 actual $000
Variation $000
The initial estimates included capital appropriations that were later reclassified in the service agreement as income from the Department of Health. In addition, government-approved capital projects included in the initial estimates were subsequently funded by the Health Service from its cash reserves as per government direction. There was also a substantial increase in the value of the Health Service’s land and building assets resulting from Landgate’s annual revaluation process. Significant increases in expenditure contributed to an underestimation of the Health Service’s deficit.
Net decrease in cash held
Sourced from statement of cash flow
2023-24 target $000
2023-24 actual $000
Variation $000
Compared to initial estimates, the Health Service had to use its cash reserves to fund an increase in operational expenditure related to employee benefits expenditure and supplies and services, which was partially offset by a decrease in investing activities.
Approved salary expense level
Sourced from statement of comprehensive income
2023-24 target $000
2023-24 actual $000
Variation $000
The variance in approved salary expenses is attributable to several key factors:
a. unfunded salary costs associated with the Nursing Professional Development allowance and payout
b. unfunded COVID-19 related expenditure,
c. expenditure on Community and Virtual Care programs exceeding the allocated funding
d. costs arising from patient complexity, including bed sit companions and increased security measures
e. the financial impact of cost of award increases that led to higher superannuation, penalties and allowances, not fully covered by existing funding.