Performance in 2018-19
Relationship between 2018–19 Portfolio Budget Statements, the 2018–19 Corporate Plan and the 2018–19 Performance Statement
Objective One: Accurate and timely calculation of Commonwealth funding contribution
Analysis of 2018–19 performance
We continue to achieve our purpose through improving the accuracy and timeliness of Commonwealth National Health Reform (NHR) contribution calculations. These calculations support the advice provided by the Administrator to the Commonwealth Treasurer on Commonwealth public hospital funding contributions.
We provided expert policy advice to the Administrator and all Australian governments on NHR funding entitlements, including the 2016–17 and 2017–18 annual reconciliation outcomes. We refined our policies, procedures and frameworks to ensure our actions were compliant with the Addendum.
We focused on greater transparency, integrity and assurance of payments for public hospital services through progressing data matching activities.
Structural changes were made to the CCM to provide a more robust platform for the calculation of public hospital funding entitlements. In 2019–20 we will continue to explore options for developing a user interface for improved access by jurisdictions.
The year ahead
- Finalise 2018–19 Annual Reconciliation;
- Finalise 2019–20 Six month Reconciliation;
- Continue to implement the Addendum requirements in the CCM;
- Process 2017–18 and 2018–19 data matching and provide outcomes to stakeholders; and
- Provide COAG Health Council with a progress update on data matching activities.
Commonwealth funding calculations are accurate
Performance criteria 1.1 (Corporate Plan) and A (PB Statement Performance)
|
2018–19 Target |
Result |
Analysis |
|
Current and future year Commonwealth Contribution Models (CCMs) are accepted by the Administrator. |
Met |
Following the appointment of Michael Lambert on 17 July 2018, the CCM calculation outcome was approved by the Administrator and underpinned the Administrator’s August 2018 payment advice. The CCM was successfully upgraded to the SAS platform in January 2019. The SAS CCM was reviewed and assured by an independent external party and is now the primary calculation engine. |
Funding entitlements reconcile to actual services delivered
Performance criteria 1.2 (Corporate Plan)
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2018–19 Target |
Result |
Analysis |
|
Adjustments made to Commonwealth payments to Local Hospital Networks (LHNs) due to reconciliation are accepted by the Administrator. |
Met |
There where two major adjustments in 2018–19 accepted by the Administrator and advised to the Commonwealth Treasurer including: Annual reconciliation for 2016–17 and six month reconciliation for 2017–18 (additional $846 million); and Annual reconciliation for 2017–18 (additional $171 million). |
Public hospital services are funded through the appropriate Commonwealth program
Performance criteria 1.3 (Corporate Plan)
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2018–19 Target |
Result |
Analysis |
|
Integrity analysis of hospital activity and other Commonwealth program (such as MBS and PBS) activity identifies instances where the same hospital service has been funded more than once. |
Met |
This initiative has progressed with linked data sets, along with the Public Interest Certificate (PIC) and Statement of Assurance (SoA) for MBS data being shared with jurisdictions. The initial linked data sets provided for jurisdictional review and investigation relate to FY 2014–15, 2015–16 and 2016–17. The Administrator will be providing a progress report to COAG Health Council later in 2019. |
The Treasurer of the Commonwealth is advised by the Administrator in a timely manner
Performance criteria 1.1 (Corporate Plan) and A (PB Statement Performance)
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2018–19 Target |
Result |
Analysis |
|
The advice regarding the amounts required to be paid into each State (and Territory) Pool Account is provided to the Treasurer in a timely manner. |
Met |
The Administrator provided four advices in 2018–19 including: August 2018 payment advice ($20.569 billion) provided to the Commonwealth Treasurer on 2 August 2018; October 2018 payment advice ($21.422 billion) provided to the Commonwealth Treasurer on 28 September 2018; April 2019 payment advice ($21.714 billion) provided to the Commonwealth Treasurer on 27 March 2019; and June 2019 payment advice ($21.737 billion) provided to the Common–wealth Treasurer on 28 May 2019. |
Performance highlights
Objective Two: Best practice financial administration of the National Health Funding Pool
Analysis of 2018–19 performance
We continue to achieve our purpose through transparency, accountability and engagement with our stakeholders in our role to assist the Administrator fulfil his duties.
We followed the Administrator’s Payments System policies and procedures throughout 2018–19, and processed all payments through the Pool in accordance with directions from the responsible State or Territory Minister.
We made $49 billion in payments to LHNs (across 4,137 banking transactions) from a total of $50 billion in funding contributions for public hospital services. This equates to 90% of total Government (Commonwealth, State and Territory) funding for public hospitals.
We made significant progress on the development of a new Payments System which will deliver simpler processes and better reporting capabilities.
We held two face to face workshops with jurisdictions to assist in the design and configuration of the new Payments System.
Following the launch of the new Payments System in 2019–20, new policy and procedure documents will be provided to stakeholders and published on our website.
The year ahead
- Implement new Payments System; and
- Promote greater understanding of the NHR Agreement to ensure funding flows are in accordance with requirements.
Maintain the integrity of the Administrator’s Payments System in accordance with policies and procedures
Performance criteria 2.1 (Corporate Plan) and B (PB Statement Performance)
|
2018–19 Target |
Result |
Analysis |
|
Administrator’s Payments System Policies and Procedures are maintained. |
Met |
The Administrator’s Payments System policies and procedures were followed throughout 2018–19. Payments adhered to operational protocols which requires payments to be approved through a three stage approval process of create, verify and approve. The Administrator’s Payments System internal control framework was reviewed and assured by an independent external party. |
Payments to each LHN accord with directions from responsible State and Territory Ministers
Performance criteria 2.2 (Corporate Plan)
|
2018–19 Target |
Result |
Analysis |
|
All payments from the Pool are made in accordance with directions. |
Met |
All payments from the Pool ($49 billion) were made in accordance with directions from State and Territory Ministers and in alignment with the Administrator’s payment advices. |
Unmodified audited financial statements
Performance criteria 2.3 (Corporate Plan)
|
2018–19 Target |
Result |
Analysis |
|
Financial statements receive an unmodified audit opinion. |
Met |
All Financial Statements for each State and Territory Pool Account received unmodified opinions from each Auditor-General. |
Objective Three: Effective reporting of public hospital funding
Analysis of 2018–19 performance
We achieved our purpose by providing transparency of public hospital funding payments made into and from the National Health Funding Pool and each State Pool Account and State Managed Fund.
Since our inception Public Hospital Funding has increased from $36 billion in 2012–13 to $50 billion in 2018–19, representing an increase of $14 billion over six years.
We combined the Administrator’s Public Hospital Funding and National Health Funding Body’s websites into one and transitioned the website to the whole of government GovCMS platform.
The year ahead
- Review the Administrator’s Three Year Data Plan in collaboration with our stakeholders;
- Review and implement the Administrator’s Data Compliance Policy in collaboration with our stakeholders; and
- Rollout phase two of our website redevelopment project to include additional reporting functionality.
Monthly and annual reporting of the payments made into and from each State Pool Account and State Managed Fund
Performance criteria 3.1 (Corporate Plan) and C (PB Statement Performance)
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2018–19 Target |
Result |
Analysis |
|
Monthly and annual reporting of funding and payment is uploaded to the Administrator’s website. |
Met |
All monthly and annual reports for 2018–19 funding and payments ($50 billion) have been published on the Administrator’s website however, due to late data submissions from some States and Territories, monthly reports for April, May and June were unable to be published until July and August 2019. |
Monthly and annual reporting of public hospital services
Performance criteria 3.2 (Corporate Plan)
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2018–19 Target |
Result |
Analysis |
|
Monthly and annual reporting of activity is uploaded to the Administrator’s website. |
Met |
All monthly and annual reports for 2018–19 activity (8.8 Million NWAU) have been published on the Administrator’s website however, due to late data submissions from some States and Territories, monthly reports for April, May and June were unable to be published until July and August 2019. |
All relevant Ministers receive required information in a timely manner
Performance criteria 2.3 (Corporate Plan)
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2018–19 Target |
Result |
Analysis |
|
Annual Report for the Pool is tabled in the Commonwealth, and State and Territory parliaments within stipulated timeframes. |
Met |
The 2017–18 Annual Report was tabled in the Commonwealth Parliament on 17 October 2018 and subsequently all State and Territory parliaments during 2018–19. |
Objective Four: Productive and effective partnerships with stakeholders
Analysis of 2018–19 performance
We achieved our purpose through maintaining and strengthening productive and collaborative relationships with stakeholders to support the obligations and responsibilities of the Administrator.
The Administrator, CEO NHFB and NHFB staff participated in a number of Commonwealth, State and Territory and Portfolio Agency forums during 2018–19.
We focused on maintaining and strengthening productive and collaborative relationships with all stakeholders to support transparent and timely information sharing.
We identified ways to improve our stakeholder’s access to information, including through the launch of the new public hospital funding website.
The year ahead
- Review our Strategic Communication and Stakeholder Engagement Framework and implement improvements;
- Explore options for sharing modelling, analytic and reporting tools with our stakeholders;
- Actively participate in bilateral and multilateral forums with jurisdictions
- Actively engage and collaborate with Portfolio Agencies (IHPA, AIHW, ACSQHC); and
- Promote greater understanding of the NHR Agreement.
Work plans and information requirements developed in collaboration and consultation with stakeholders
Performance criteria 4.1 (Corporate Plan) and B (PB Statement Performance)
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2018–19 Target |
Result |
Analysis |
|
Three-year data plans are completed on time, endorsed by the Administrator and agreed with stakeholders. |
Met |
The Administrator’s Three Year Data Plan 2020-21 to 2022-23 was developed in consultation with the Administrator’s Jurisdictional Advisory Committee and submitted to Australian Health Ministers Advisory Council (AHMAC) in February 2019. It was then considered by COAG Health Council in March 2019 and subsequently published in June 2019. |
Provide trusted and impartial advice to enable effective health reform
Performance criteria 4.2 (Corporate Plan)
|
2018–19 Target |
Result |
Analysis |
|
Advice accepted and incorporated into the drafting of the future Agreement by 1 November 2019. |
Met |
The Administrator and CEO NHFB discussed various potential proposals with members of the Administrator’s JAC prior to providing advice to the Commonwealth Department of Health in October 2018. |
Objective Five: Operate as a compliant agency
Analysis of 2018–19 performance
We met all of our legislative reporting obligations and achieved our purpose through embedding our four sign-post behaviors; one NHFB, enhance trust, open communication and own it.
We identified ways to improve our organisational, financial and risk performance reporting to track progress throughout the year against our five strategic objectives. During this process we also made improvements to sharing information with our stakeholders and made progress on shared risks with our portfolio agency partners.
The year ahead
- Implement our 2019–2023 Workforce Plan;
- Implement our 2019–20 Learning and Development Strategy; and
- Apply enhancements to our risk management and assurance practices.
A positive workplace culture where people adopt best practice approaches and good governance principles to achieve results
Performance criteria 5.1 (Corporate Plan)
|
2018–19 Target |
Result |
Analysis |
|
Our united leadership behaviours are demonstrated through annual employee survey results. |
Met |
Improving our workplace culture and embedding our united leadership behaviours has been a key focus of 2018–19 and will continue to be in 2019–20. 2019 APS Employee Census: The NHFB ranked 8th out of 97 agencies for ‘Innovation’, 20th for ‘Engagement’, and 36th for ‘Wellbeing’. The overall results for each of these categories improved on last year and we remained above the APS average overall. |
|
All compliance reporting requirements for the NHFB as a non-corporate entity are met within timelines. |
Met |
All compliance obligations under the PGPA Act were met, including publishing the 2017-18 Annual Report and 2018–19 Corporate Plan. |
Policies and procedures comply with relevant statutory and legislative requirements
Performance criteria 5.2 (Corporate Plan)
|
2018–19 Target |
Result |
Analysis |
|
Corporate policies are current and endorsed by the CEO. |
Met |
In 2018–19, the NHFB delivered: Strategic Direction 2018–2022 Corporate Plan 2018–19 Risk Tolerance Statement 2018–19 Section Plans The NHFB has established a rolling policy update schedule to ensure all corporate policies are regularly reviewed and updated in line with relevant statutory and legislative requirements. |
Unmodified NHFB audited financial statements
Performance criteria 5.3 (Corporate Plan)
|
2018–19 Target |
Result |
Analysis |
|
The Australian National Audit Office provides an unmodified audit opinion. |
Met |
NHFB Financial Statements received an unmodified audit opinion from the ANAO. |
Performance highlights
Visit
https://www.transparency.gov.au/annual-reports/national-health-funding-body/reporting-year/2018-2019-15