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Southern Adelaide Local Health Network Incorporated

Functional responsibility

The Southern Adelaide Local Health Network Incorporated (SALHN) is established pursuant to the Health Care Act 2008.

The powers and functions of SALHN are to establish, provide, maintain and enhance hospital, medical and allied health services in its local area.

Under the Health Care Act 2008 the Chief Executive, Department for Health and Ageing assumes direct responsibility for the administration of incorporated hospitals. This includes the appointment of the Chief Executive Officer of SALHN. The Chief Executive, Department for Health and Ageing cannot give a direction concerning the clinical treatment of a particular person.


Financial statistics
Total expenses: $1014 million
Net cost of providing services: $879 million
Revenues from SA Government: $873 million
   
Employee benefits liability and related on-costs: $205 million
Workers compensation liability: $18 million
   
Number of FTEs: 5829

Significant events and transactions
  • The Chief Executive, Department for Health and Ageing approved the transfer of 29 Financial Business Advisory and Hospital Based Revenue Services employees within finance to SALHN effective 1 June 2015.
  • The rollout of the One Procurement Solution was finalised during the year, resulting in all accounts payable transactions now being processed to a single payable platform (Basware).

Financial statement opinion
Unmodified

Financial controls opinion
Modified
Key issues:
  • Inadequate review of key payroll reports
  • Inadequate review of leave management reports
  • No review of delegations established in key financial systems or key exception reports
  • A number of weaknesses in the Enterprise Patient Administration System (EPAS) billing processes and an inability to explain a variance between EPAS and Oracle billing totals
  • No review of user access to EPAS
  • Inadequate review of user access to Homer