New reporting framework includes:‐ General Purpose Financial Report (audited) Aged Care Financial Report (ACFR) Statement of Income & Expenses (by residential segment) Statement of Income & Expenses (by home care service) Statement of Financial Position (residential segment) Statutory Reports** (Approved Provider) Prudential Reporting (Approved Provider)

1. Aged Care Financial ReportAged Care Financial Report

2. Current Reporting Framework
Aged Care Act 1997 required providers to submit annually:‐
o Survey of Aged Care Homes (unaudited)
o Home Care Financial Reporting (unaudited)
o General Purpose Financial Report (audited)
o Annual Prudential Compliance Statement (audited)

3. New Reporting Framework
For 2017 fiscal year, a new reporting framework commences
Objectives:‐
 Reduce the complexity of reporting arrangements
 Improve consistency and quality of data collected
 Improve the analysis of financial data collected
 Streamline reporting to be submitted

4. New Reporting Framework
New reporting framework includes:‐
General Purpose Financial Report (audited)
Aged Care Financial Report (ACFR)
 Statement of Income & Expenses (by residential segment)
 Statement of Income & Expenses (by home care service)
 Statement of Financial Position (residential segment)
 Statutory Reports** (Approved Provider)
 Prudential Reporting (Approved Provider)

5. General Purpose Financial Report
Accountability Principles 2014
• s35(1) An Approved Provider must prepare a financial report
• s35(2) The financial report must be a General Purpose Financial
Report and comply with Accounting Standards
• s36(1) The Approved Provider must have the financial report
audited
• s37(2) The audited financial report must be given to a care
recipient or approved intending care recipient if requested

6. General Purpose Financial Report
ACNC Act 2012
 s205‐25 (3) A large entity has revenue in excess of $1m
 s60‐10 A Large entity must provide the Commissioner with a
financial report
 s60‐15 The financial report must comply with the
requirements set out in the Regulations
 s60‐25 A large entity must have its financial report audited

7. General Purpose Financial Report
ACNC Regulation 2013
 s60.5 The contents of the financial report include the financial
statements, notes and declaration
 s60.10 The financial statements are as required to be prepared
by the Accounting Standards
 SAC1 defines “reporting entity” concept
 AASB 1053 defines Tier 2 entities ‐ reduced disclosure
requirements

8. General Purpose Financial Report
Corporations Act 2001 (Chapter 2M)
Large proprietary companies ‐ any two (2) of: revenue over
$25m; gross assets of over $12.5m; 50+ employees
 s292 large entities must prepare financial reports
 s295 defines what the financial report must include
 s296 dictates the compliance with Accounting Standards
 s301 and s308 defines the external audit requirement

9. GPFR and ACFR
ACFR has 4 tabs relational to Approved Provider GPFR
o Statement of Income and Expenses
o Statement of Financial Position
o Cash Flow Statement
o Notes
ACFR is not required to be completed for Approved Provider
tabs if GPFR submitted and the mandated lines are included in
the GPFR

10. GPFR and ACFR
Statement of Income and Expenses (mandated items) includes
separate disclosure for the following:‐
• Operating income and non‐operating income
• Investment income (from investment assets)
• Interest income ‐ related parties and other
• Rental expense ‐ related party and other
• Management fees ‐ related party and other
• Interest expense ‐ related party and other

11. GPFR and ACFR
Statement of Financial Position (mandated items) includes
separate disclosure for the following:‐
• Refundable loans receivable/payable ‐ residential and other
• Loans receivable ‐ related party and other (current/non‐current)
• Work in progress ‐ residential and other (current/non‐current)
• Loans payable ‐ secured/unsecured; related party and other; current
and non‐current portion
• Unspent HCP funds

12. GPFR and ACFR
Cash Flow Statement (mandated items) includes separate
disclosure for the following:‐
• Allowable deductions from bonds (cash items only)
• Interest received/paid and finance costs (Operating Cash Flows)
• Purchases of PP&E ‐ residential and non‐residential
• Refundable loans (residential) received/paid (Financing Cash Flows)
• Refundable loans (non‐residential) received/paid (Financing Cash Flows)
• Proceeds from borrowings ‐ residential and other
• Related party loans paid/received

13. GPFR and ACFR
Notes to the Financial Statement (mandated items) includes
separate disclosure for the following:‐
• Group structure (related entities and relationship to AP)
• Going concern ‐ details of any significant risk and mitigation strategy
• Significant items (revenue/expense) ‐ amount and description
• Distributions/dividends paid ‐ include brief reason for payment
• Secured assets ‐ details and linkage to related liability
• Unused credit facilities ‐ details and relationship to residential
segment
• Impairment ‐ amount and asset/debt relates to

14. ACFR and Residential Segment
Residential Statement of Income and Expenses
• Consolidated (not by facility)
• Relates only to residential segment
• Non‐operating income and expenses ‐ only include if they
specifically relate to residential segment

15. ACFR and Residential Segment
Residential Statement of Income and Expenses
• Revenue dissection ‐ Care/Accommodation/Financing/Other
• Expense dissection ‐ Care/Accommodation/Hotel/Administration/
Capital/Other
• Resident fees ‐ separately disclose basic daily fee; means‐tested care fee;
other resident fees (additional services, not extra services)
• Labour costs ‐ dissected between care; accommodation, hotel and
administration
• Labour costs ‐ include agency and contract staff
• Utilities ‐ included with Other Accommodation Expenses
• Hotel contracted services ‐ disclose external and internal

16. ACFR and Residential Segment
Residential Statement of Financial Position
• Other current/non‐current assets ‐ includes all assets not specifically disclosed
• PP&E ‐ residential only
• Intangibles ‐ bed licences/goodwill/specific residential software
• Bank borrowing ‐ amount specifically relating to residential
• Related party ‐ note the definition of related party
• Refundable loans ‐ separate disclosure for residents who have left facility
• Other current/non‐current liabilities ‐ includes not specifically disclosed
• Equity ‐ last years closing balance plus (minus) current year residential
movements (earnings/reserves)

17. ACFR and Residential Segment
Residential Building Activity
• New building ‐ disclose total cost and number of beds (by facility)
• Rebuild ‐ disclose total cost, number of beds (before and after) (by facility)
• Refurbishment ‐ disclose total cost, number of beds (before and after) (by
facility)
• Work in Progress ‐ same disclosures as above (new/rebuild/refurbishment)
• Planned ‐ how many residents will be accommodated by planned new works
(before and after)

18. ACFR and Home Care Segment
Home Care Statement of Income and Expenses
• Information to be submitted by Service Level (not consolidated)
• Revenue ‐ includes HCP clients and private clients
• Revenue ‐ dissected between service/case management/administration
• Revenue unspent funds ‐ only relates to period before 27/2/17
• Exit fees ‐ only relates to period after 27/2/17
• Staff costs ‐ dissected between care and administration/non‐care
• Staff costs care ‐ includes case management
• Client fees ‐ dissected between basic daily/income tested/other
• Unspent funds transfer ‐ disclose where transferred to
• Cash and liquid assets ‐ disclose if applicable (unspent funds liability)

19. ACFR and Prudential Reporting
Fees and Payments Principles 2014 (No 2)
Four (4) Prudential Standards
Governance
Disclosure
Liquidity
Records

20. ACFR and Prudential Reporting
Annual Prudential Compliance Statement
 Must be completed by all approved providers (residential)
 Format (questions) the same as 2015 APCS
 Not required to be audited

21. ACFR and Prudential Reporting
Annual Prudential Compliance Statement (extract)
Attachment 1 ‐ Listing of RAD’s and Bonds
Column A Column B
Column C
#
Column D
$
Column E
#
Column F
$
Service RACS ID Service Name Total number of
Refundable Deposit & Bond
balances held at 30/06/XX
Total value of
Refundable Deposit & Bond
balances held at 30/06/XX
Total number of entry
contribution balances held
at 30/06/XX
Total value of entry
contribution balances held
at 30/06/XX
Attachment 1
Refundable deposits, bonds and entry contribution balances held at 30/06/20XX.
Please include all services operated by you on the last day of your financial year.
Columns C and D should include both refundable deposits and bonds, while columns E and F relate to entry contributions only.
Refundable Lump Sum Balances Entry Contribution Balances

22. ACFR and Prudential Reporting
Permitted Uses Statement (extract)
Yes No
Compliance with Permitted Uses for Refundable Lump Sum Payments
During the financial year did you use all Refundable Deposits and Bonds only for uses that are permitted under the Act?
If you answer 'NO' must submit a separate statement explaining:
• Each non‐permitted use
• The amount expended on each non‐permitted use
• The reason you failed to comply with permitted use requirements.
• Indicate below which permitted use you did expend refundable deposits on, if any
Which of the permitted uses listed below did you expend refundable deposits, accommodation bonds or entry contributions on in 20XX‐XX? Please
cross the relevant boxes. See section 52N‐1 of the Act and part 6 of the Fees and Payments Principles for the definitions of each of the below.