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Central Adelaide Local Health Network Incorporated (CALHN)

Financial statistics
Total expenses: $2216 million
Net cost of providing services: $1676 million
Revenues from SA Government: $1619 million
   
Staff benefits liability and related on-costs: $431 million
Workers compensation liability: $28 million
   
Number of FTEs: 10 778

Significant events and transactions
  • The new Royal Adelaide Hospital (RAH) Public Private Partnership project continued.
  • Under the terms of a Deed of Settlement and Release (the Deed) signed in September 2015, the dates of technical completion and commercial acceptance were extended to 4 April 2016 and 3 July 2016 respectively.
  • The State paid an amount of $30 million in October 2015 for site remediation and modification costs consistent with the Deed.
  • The State issued a major default notice on 5 April 2016 for failing to meet the revised technical completion date, and further major default notices have since been issued.
  • $36.5 million was paid to SA Health Partnership Nominees Pty Ltd (SAHP) in August 2016, consistent with the Deed.
  • The State and SAHP are currently before the Supreme Court of South Australia over contractual matters.
  • Construction of the new RAH is at an advanced stage of completion. It is expected to be completed in 2016-17.
  • Assets worth $31.3 million were transferred to the Department for Health and Ageing prior to their sale, including parts of the Glenside site.
  • Expressions of interest in the old RAH site closed in October 2015, with the outcome yet to be finalised.
  • A number of Statewide Clinical Support Services transactions and balances were reallocated to CALHN from other local health networks, accounted for as a prior period error.

Financial statement opinion
Unmodified

Financial controls opinion
Modified
Key issues:
  • Inadequate review of employee payroll and leave information
  • System access (including delegations) not adequately reviewed
  • Completeness of revenue
  • Instances of duplicate payments
  • Nursing agency contract compliance