HWA

Health Workforce Australia

Agency Resources and
Planned Performance

1

HWA

Health Workforce Australia

Health and Ageing Portfolio Agency

Section 1: Agency Overview and Resources

1.1:Strategic Direction Statement...... 426

1.2:Agency Resource Statement...... 427

1.3:Budget Measures...... 427

Section 2: Outcomes and Planned Performance

2.1:Outcomes and Performance Information...... 428

Section 3: Explanatory Tables and Budgeted Financial Statements

3.1:Explanatory Tables...... 433

3.2:Budgeted Financial Statements...... 434

1

HWA

HWA - Agency Budget Statements – Agency Overview and Resources

Section 1: Agency Overview and Resources

1.1 Strategic Direction Statement

Health Workforce Australia (HWA) was established in January 2010 to deliver a more effective, nationally coordinated approach to securing a sustainable health workforce for Australia. HWA will achieve this by providinghealth workforce planning based on need, effective and efficient clinical training, workforce reform and national coordination of skilled health migration.

HWA provides planning, coordination and financial support for the delivery and reform of clinical training for eligible students by appropriate training providers. HWA undertakes national health workforce research and planning; delivers clinical training reform programs; is implementing a consistent approach to international recruitment of health professionals to Australia;and leads initiatives that deliver workforce innovation and reform measures. HWA collects, analyses and publishes data to inform the development of health workforce policies by the Standing Council on Health.

HWA is a national agency operating across the health and education sectors. It is governed by a Board of Directors comprising a nomination from each state and territory, a chairperson and up to three independent members. It reports directly to the Standing Council on Health.

The roles and functions of HWA are set out in the Health Workforce Australia Act2009. HWA is prescribed as a Commonwealth authority under the Commonwealth Authorities and Companies Act 1997.

1.2 Agency Resources

Table 1.2.1shows the total resources from all origins. The table summarises how resources will be applied by outcome and by Departmental classifications.

Table 1.2.1: HWAResource Statement – Budget Estimates for 2013-14 as at Budget May 2013

Estimate
of prior
year amounts
available in
2013-14
$'000 / Proposed
at Budget
2013-14
$'000 / Total
estimate
2013-14
$'000 / Estimated
available
appropriation
2012-13
$'000
Opening balance/reserves at bank / 134,164 / - / 134,164 / 132,029
FUNDS FROM GOVERNMENT
Ordinary annual services¹
Outcome 1 / - / - / - / -
Total ordinary annual services / - / - / - / -
Other services2
Non-operating / - / - / - / -
Total other services / - / - / - / -
Total annual appropriations / - / - / - / -
Payments from related entities3
Amounts from the PortfolioDepartment / - / 208,918 / 208,918 / 213,562
Amounts from other agencies / - / - / - / -
Total payments / - / 208,918 / 208,918 / 213,562
Total funds from Government / - / 208,918 / 208,918 / 213,562
FUNDS FROM OTHER SOURCES
Interest / - / 600 / 600 / 600
Sale of goods and services / - / 350 / 350 / 350
Total other sources / - / 950 / 950 / 950
Total net resourcing for HWA / 134,164 / 209,868 / 344,032 / 346,541

Notes:

All figures are GST exclusive.

HWA is not directly appropriated as it is a CAC Act body. Appropriations are made to the Department of Health and Ageing which are then paid to HWA and are considered ‘departmental’ for all purposes.

1 Appropriation Bill (No. 1) 2013-14

2 Appropriation Bill (No. 2) 2013-14.

3 Funding provided by a Government body that is not specified within the annual appropriation bills as a payment to the CAC Act body.

1.3 Budget Measures

Section 1.3 is not applicable to HWA in 2013-14.

Section 2: Outcomes and Planned Performance

2.1Outcomes and Performance Information

Outcome 1 – Improved health workforce capacity, including through a national approach to workforce policy and planning across all health disciplines,
which effectively integrates research, education and training

Outcome Strategy

The Australian Government recognises that an adequate health workforce is fundamental toensuring Australians have access to high quality, effective, efficient and financially viable health services. It also recognises that there are significant health workforce shortages across the health care continuum, and that limited clinical training capacity for many disciplines has restricted the health system’s ability to respond to these shortages.

HWA is the Australian Government authority responsible for establishing more effective, streamlined and integrated clinical training arrangements. It has responsibility for supporting national workforce policy and planning. HWA operates nationally and, in collaboration with the health and education sectors, provide support to enhance clinical training opportunities for eligible professions. Training will be delivered through a national network of simulated learning environments and Integrated Regional Clinical Training Networks. These networks will improve the governance and organisation of clinical training at a regional level and align regional efforts with the objectives of national health workforce reform.

HWA will ensure that clinical training undertaken as part of health professional entry level education programs occurs inthe most streamlined, integrated, efficient and educationally effective manner, with appropriate support for coordination and supervision at the regional, local and health service delivery levels.

HWA plays an important role in leading and supporting health workforce reform. It does this through planning and policy development, and informs policy decisions onworkforce supply, demand and distribution. HWA’s activities include continuous improvement of national health workforce information and the establishment of a national workforce statistical resource.

Workforce shortages, particularly in rural and remote Australia, remain an issue. HWA is a key agency responsible for progressing health workforce reform and developing policies and programs aimed at streamlining recruitment of health professionals from overseas.

HWA Budgeted Expenses and Resources

Table 2.1.1 provides an overview of the total expenses for HWA by Program.

Table 2.1.1: Budgeted Expenses and Resources for HWA

2012-13
Estimated
actual
$'000 / 2013-14
Budget
$'000 / 2014-15
Forward
year 1
$'000 / 2015-16
Forward
year 2
$'000 / 2016-17
Forward
year 3
$'000
Program 1.1: Expanding workforce capacity
Revenue from Government
Amounts from the PortfolioDepartment / 213,562 / 208,918 / 211,687 / 214,362 / 217,084
Revenues from independent
sources / 1,452 / 1,452 / 1,452 / 1,452 / 1,452
Operating deficit (surplus) / (1,060) / (1,060) / - / - / -
Total for Program 1.1 / 213,954 / 209,310 / 213,139 / 215,814 / 218,536
Total expenses for Outcome 1 / 213,954 / 209,310 / 213,139 / 215,814 / 218,536
2012-13 / 2013-14
Average staffing level (number) / 132 / 140

1

HWA

HWA - Agency Budget Statements – Agency Overview and Resources

Program 1.1: Expanding workforce capacity

Program Objectives

Deliver clinical training reform

The Australian Government, through HWA, provides the funding and support necessary to train the next generation of Australia’s health and medical workforce. Programs funded through HWA will increase overall clinical training capacity and emphasise training in non-traditionalsettings. HWA has implemented Integrated Regional Clinical Training Networks to improve governance and organisation of clinical training at a regional level. The networks are geographically based and complement Medicare Locals and Local Hospital Networks.

HWA will expand the capacity, increase the efficiency and improve the quality of clinical training, while offering health professionals a greater diversity oflearning opportunities,through the Clinical Supervision Support Program and the Simulated Learning Environments Program. These two programs will help ensure national consistency in clinical supervision and meet the demand for the provision of simulated learning environments. Simulated learning facilities are located in areas of need, such as rural and remote settings.

Provide leadership on workforce policy, planning and reform

HWAwill take a lead role in workforce policy and planning. Guided by the National Health Workforce Innovation and Reform Strategic Framework for Action (2011-2015), HWA will commission and undertake research and consults with clinicians and health professionals to identify the barriers and constraints limiting the availability and efficiency of a skilled health workforce. In 2013-14, HWA will continue to support the development and implementation of new workforce models, encourage and assist inter-professional practice, and equip health professionals and employers to successfully manage current and emerging demands on the health care sector.

In 2013-14, HWA will continue to undertake data analysis,workforce modelling and research to inform workforce planning and reform decisions. Health Workforce 2025 for Doctors, Nurses and Midwives will be updated in line with data releases. Specific modelling studies into maternity and aged care will be undertaken, andworkforces, such as the mental health workforces, will be profiled. Research will focus on information collection, measurement and planning methods for geographical distribution, alternative demand modelling and workforce productivity and costing.

Support national coordination for the recruitment of international health professionals

The recruitment of overseas trained health professionalsis an important element of the Government’s strategy to address workforce shortages. HWA, along with the Department of Health and Ageing, will continue to implement a nationally coordinated approachfor theinternational recruitment of health professionals to Australia. This includes delivery of the Rural Health Professionals Program to support the rural and remote health workforce by recruiting nursing and allied health professionals from overseas into rural and remote Australia and providing them with support services.

Program 1.1: Deliverables

Qualitative Deliverables for Program 1.1

Deliver clinical training reform

Qualitative Deliverable / 2013-14 Reference Point or Target
Support expansion of professional entry training places across priority professions and settings / Growth in clinical placement days across professions and settings

Provide leadership on workforce policy, planning and reform

Qualitative Deliverables / 2013-14 Reference Point or Target
Implement the National Health Workforce Innovation and Reform Strategic Framework for Action 2011-2015 / National rollout of new workforce models
Provide accessible and updated workforce data / Work progressed on a number of initiatives outlined in the framework, including: update and extension to the national statistical resource;update the figures for Health Workforce 2025 -Doctors, Nurses and Midwives; deliver workforce studies for maternity and aged care and undertake selected workforce profiles

QuantitativeDeliverable for Program 1.1

Provide leadership on workforce policy, planning and reform

Quantitative Deliverable / 2012-13 Revised Budget / 2013-14 Budget
Target / 2014-15 Forward
Year1 / 2015-16 Forward
Year2 / 2016-17 Forward
Year3
Number of health workforce data reports published / 4 / 5 / 5 / 5 / 5

Program 1.1: Key Performance Indicators

QuantitativeKey Performance Indicators for Program 1.1

Deliver clinical training reform

Quantitative
Indicator / 2012-13 Revised Budget / 2013-14 Budget
Target / 2014-15 Forward
Year 1 / 2015-16 Forward
Year 2 / 2016-17 Forward
Year 3
Number of additional clinical training placement days delivered under the Clinical Training Program[1] / 850,000 / 23,000[2] / 23,000 / 23,000 / 23,000
Number of training recipients undertaking national simulator education and technician/
coordinator training / 5,000 / 2,550 / 1,000 / 1,000 / 1,000

Support national coordination for the recruitment of international health professionals

Quantitative
Indicator / 2012-13 Revised Budget / 2013-14 Budget
Target / 2014-15 Forward
Year 1 / 2015-16 Forward
Year 2 / 2016-17 Forward
Year 3
Number of health professionals recruited to provide primary care services in rural locations under the Rural Health Professionals Program / 280 / 120[3] / 280 / 280 / 280

Section 3:Explanatory Tables and Budgeted Financial Statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory Tables

3.1.1Movement of administered funds between years

Section 3.1.1 is not applicable to HWA

3.1.2Special Accounts

Section 3.1.2 is not applicable to HWA.

3.1.3Australian Government Indigenous Expenditure

In 2013-14, the Australian Government Indigenous Expenditure Statement is not applicable because HWA has no specific Indigenous expenses.

3.2 Budgeted Financial Statements

3.2.1Differences in agency resourcing and financial statements

There are no significant differences between HWA’s resourcing and the budgeted financial statements.

3.2.2Analysis of budgeted financial statements

An analysis of HWA’s budgeted financial statements for 2013-14 is provided below.

Departmental Resources

Comprehensive Income Statement

HWA’s 2013-14 revenue from Government ($208.9 million) provides for operational and administrative funding for the delivery of HWA’s programs.

HWA’s total expense for 2013-14 is estimated at $209.3 million, including grant expense of $175.7 million.

Balance Sheet

HWA’s total assets and liabilities are expected to remain stable over the forward years. The assets are budgeted to comprise predominately cash and non-financial assets. The liabilities are budgeted to comprise suppliers payable and employee entitlements.

3.2.3Budgeted financial statements tables

Table 3.2.1: Comprehensive Income Statement (showing net cost of services)
(for the period ended 30June)

Estimated
actual
2012-13
$'000 / Budget
estimate
2013-14
$'000 / Forward
estimate
2014-15
$'000 / Forward
estimate
2015-16
$'000 / Forward
estimate
2016-17
$'000
EXPENSES
Employee benefits / 16,077 / 16,509 / 17,004 / 17,514 / 18,039
Supplier expenses / 14,252 / 13,493 / 14,594 / 15,481 / 15,435
Depreciation and amortisation / 1,960 / 2,145 / 1,900 / 1,463 / 1,235
Grants / 180,212 / 175,711 / 178,189 / 179,889 / 182,360
Other / 1,453 / 1,452 / 1,452 / 1,467 / 1,467
Total expenses / 213,954 / 209,310 / 213,139 / 215,814 / 218,536
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services / 350 / 350 / 350 / 350 / 350
Interest / 600 / 600 / 600 / 600 / 600
Total revenue / 950 / 950 / 950 / 950 / 950
Gains
Other / 502 / 502 / 502 / 502 / 502
Total gains / 502 / 502 / 502 / 502 / 502
Total own-source income / 1,452 / 1,452 / 1,452 / 1,452 / 1,452
Net cost of (contribution by)services / 212,502 / 207,858 / 211,687 / 214,362 / 217,084
Revenue from Government / 213,562 / 208,918 / 211,687 / 214,362 / 217,084
Surplus (Deficit) / 1,060 / 1,060 / - / - / -
Surplus (Deficit) attributable tothe Australian Government / 1,060 / 1,060 / - / - / -
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves / - / - / - / - / -
Total other comprehensiveincome / - / - / - / - / -
Total comprehensive incomeattributable to the Australian Government / 1,060 / 1,060 / - / - / -

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)

Estimated
actual
2012-13
$'000 / Budget
estimate
2013-14
$'000 / Forward
estimate
2014-15
$'000 / Forward
estimate
2015-16
$'000 / Forward
estimate
2016-17
$'000
ASSETS
Financial assets
Cash and cash equivalents / 134,164 / 136,489 / 137,514 / 137,917 / 138,092
Receivables / 11,683 / 11,683 / 11,683 / 11,683 / 11,683
Total financial assets / 145,847 / 148,172 / 149,197 / 149,600 / 149,775
Non-financial assets
Property, plant and equipment / 4,359 / 3,274 / 2,434 / 2,031 / 1,856
Intangibles / 197 / 197 / 197 / 197 / 197
Other / 7,361 / 7,361 / 7,361 / 7,361 / 7,361
Total non-financial assets / 11,917 / 10,832 / 9,992 / 9,589 / 9,414
Total assets / 157,764 / 159,004 / 159,189 / 159,189 / 159,189
LIABILITIES
Payables
Suppliers / 2,414 / 2,414 / 2,414 / 2,414 / 2,414
Grants / 10,910 / 10,910 / 10,910 / 10,910 / 10,910
Other / 330 / 330 / 330 / 330 / 330
Total payables / 13,654 / 13,654 / 13,654 / 13,654 / 13,654
Provisions
Employees / 1,836 / 2,016 / 2,201 / 2,201 / 2,201
Total provisions / 1,836 / 2,016 / 2,201 / 2,201 / 2,201
Total liabilities / 15,490 / 15,670 / 15,855 / 15,855 / 15,855
Net assets / 142,274 / 143,334 / 143,334 / 143,334 / 143,334
EQUITY
Retained surpluses oraccumulated deficits / 142,274 / 143,334 / 143,334 / 143,334 / 143,334
Total equity / 142,274 / 143,334 / 143,334 / 143,334 / 143,334

Table 3.2.3: Departmental Statement of Changes in Equity — summary of movement (Budget year 2013-14)

Retained
Earnings
$'000 / Asset
revaluation
reserve
$'000 / Other
Reserves
$'000 / Contributed
equity/
capital
$'000 / Total
Equity
$'000
Opening balance as at 1 July 2013
Balance carried forward fromprevious period / 142,274 / - / - / - / 142,274
Surplus (deficit) for the period / 1,060 / - / - / - / 1,060
Appropriation (equity injection) / - / - / - / - / -
Estimated closing balanceas at 30 June 2014 / 143,334 / - / - / - / 143,334

Table 3.2.4: Budgeted Departmental Statement of Cash Flows
(for the period ended 30 June)

Estimated
actual
2012-13
$'000 / Budget
estimate
2013-14
$'000 / Forward
estimate
2014-15
$'000 / Forward
estimate
2015-16
$'000 / Forward
estimate
2016-17
$'000
OPERATING ACTIVITIES
Cash received
Goods and services / 350 / 350 / 350 / 852 / 350
Funds from Government / 213,562 / 208,918 / 211,687 / 214,362 / 217,084
Interest / 600 / 600 / 600 / 600 / 600
Net GST received / 21,446 / 21,695 / 22,047 / 22,496 / 21,890
Other / 5,000 / - / - / - / -
Total cash received / 240,958 / 231,563 / 234,684 / 238,310 / 239,924
Cash used
Employees / 15,902 / 16,329 / 16,819 / 17,515 / 18,039
Suppliers / 15,655 / 14,872 / 16,077 / 17,728 / 16,587
Grants / 204,753 / 195,525 / 198,251 / 200,152 / 202,596
Other / 1,453 / 1,452 / 1,452 / 1,452 / 1,467
Total cash used / 237,763 / 228,178 / 232,599 / 236,847 / 238,689
Net cash from (or used by)operating activities / 3,195 / 3,385 / 2,085 / 1,463 / 1,235
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment / 1,060 / 1,060 / 1,060 / 1,060 / 1,060
Total cash used / 1,060 / 1,060 / 1,060 / 1,060 / 1,060
Net cash from (or used by)investing activities / (1,060) / (1,060) / (1,060) / (1,060) / (1,060)
Net increase (or decrease)in cash held / 2,135 / 2,325 / 1,025 / 403 / 175
Cash and cash equivalents at thebeginning of the reporting period / 132,029 / 134,164 / 136,489 / 137,514 / 137,917
Cash and cash equivalents at theend of the reporting period / 134,164 / 136,489 / 137,514 / 137,917 / 138,092

Table 3.2.5: Departmental Capital Budget Statement

Estimated
actual
2012-13
$'000 / Budget
estimate
2013-14
$'000 / Forward
estimate
2014-15
$'000 / Forward
estimate
2015-16
$'000 / Forward
estimate
2016-17
$'000
PURCHASE OF NON-FINANCIALASSETS
Funded internally fromdepartmental resources / 1,060 / 1,060 / 1,060 / 1,060 / 1,060
Total acquisitions ofnon-financial assets / 1,060 / 1,060 / 1,060 / 1,060 / 1,060
RECONCILIATION OF CASH USEDTO ACQUIRE ASSETS TOASSET MOVEMENT TABLE
Total purchases / 1,060 / 1,060 / 1,060 / 1,060 / 1,060
Total cash used to acquireassets / 1,060 / 1,060 / 1,060 / 1,060 / 1,060

Table 3.2.6: Statement of Asset Movements (2013-14)

Buildings
$'000 / Other property,
plant &
equipment
$'000 / Intangibles
$'000 / Total
$'000
As at 1 July 2013
Gross book value / - / 7,894 / 267 / 8,161
Accumulated depreciation/amortisation andimpairment / - / 3,535 / 70 / 3,605
Opening net book balance / - / 4,359 / 197 / 4,556
CAPITAL ASSET ADDITIONS
Estimated expenditure on new orreplacement assets
By purchase - appropriation ordinaryannual services / - / 1,060 / - / 1,060
Sub-total / - / 1,060 / - / 1,060
Other movements
Depreciation/amortisation expense / - / 2,145 / - / 2,145
As at 30 June 2014
Gross book value / - / 8,954 / 267 / 9,221
Accumulated depreciation/amortisation andimpairment / - / 5,680 / 70 / 5,750
Closing net book balance / - / 3,274 / 197 / 3,471

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[1]Future years’ growth dependent on funding agreements. Current funding agreements expire December2013.

[2]Target based on student numbers (equivalent full time student load) rather than clinical training placement days.

[3]Reduction in target to align activity to required budget adjustments.