REPORT

INTRODUCTION

This project intends to provide specific information regarding the department of health entity in Australia in context with the company named ACHC (Australian community home care Pty ltd). The performance of the entity has been analyzed using the balance sheet so that the position of assets and liabilities can be determined accurately. Therefore, the purpose is to examine the financial performance of the entity in the last couple of years.

TASK 

(A): Information regarding the balance sheet of ACHC (Australian community home care Pty ltd)

The departments of health are a well-known government organization that is responsible for operating an Australian health system. It consists of supporting widely and economical access to medical, and hospital services as well as assists the people to stay healthy from any kind of health issue, and diseases. The departments have no quantifiable contingent assist as in June 2018 previously it was $0.150m. Similar the liabilities in respect of claims for damages or cost as on the same period is records as $0.65m.The department of health has assets that are kept for the operational purpose as well as not deriving a profit. According to AASB 13, the quantitative data on significant unobservable data has been used in evaluating the fair value of the data. As per the ACHC (Australian community home care Pty ltd) tend to receive payment for evaluating services in advance of medical service delivery during the financial years. For the period of 2018, it is having total assets of $116690 as well as 106575 for 2017. Similarly, the liability has recorded with 54970 and 62990 respectively for the two consecutive years. Apart from this, the department of health is having a total equity capital of 61720 and 53585 respective for the respective two years. It has been clearly seen that the balance sheet of the health department of Australia is showing positive growth returns from the previous years. The assets have increased effectively with 3166195 which is quite high as compared to last year 2202361. On the other hand, the debt position of the departments is also in control with 1481356. It means that they have a sufficient amount of cash to meet their short-term debt obligations.

(B): Assessment of entity performance

The departments of health care are having great potential in terms of total assets that could be better used for providing effective care services to the people. The overall financial performance of ACHC (Australian community home care Pty ltd) is reliable enough to handle the operation of the departments because it has incurred $6965 as total revenue for the period of 2018 which is quite high as compared to the previous profit of 5092 in 2017. It received payment for the purpose of evaluating the services in advance delivery of the facilities as well as it could extend across the financial years. It was estimated that the stage of services delivery as well as recognized with the matching revenue for the period of 2017-18. The departments apply AASB 137 with the provision of contingent debt and assets as disclosed in the balance sheet of the company . The overall revenue level is showing potential growth opportunities for the organization in coming next couple of years. The assets are kept for operational purposes as not to incur a profit. All those assets that are kept for a period are be recorded at fair value which consists of leasehold improvements, fixed assets, and other current assets. The operational expenses for the organization are also under the control that could be accountable to provide specific growth return to the entity in the next coming years. However, the key principles that are underlying with the Australian healthcare system are equitable to global access to a maximum number of care home services. The departments of health care are being funded by Medicare as well as various pharmaceutical plans that are highly subsidized by the legal authority of Australia. The efficiency level of health departments is a concern with the financial strength that can help them to reach their desired goal effectively.

(C): Ability of entity operation 

The Department of health care plays an important role in regulating their financial system which is affected by the essential health care system and other social organizations in terms of ensuring quality and safety of the medical services. According to the balance sheet performance of the entity, it has been identified the assets position is continuously increasing day-by-day which is a positive sign for the entity. On the other hand, the debt obligations are also under the control which means that they are having a sufficient amount of cash balance which could help to meet its short as well as long term obligations. Therefore, it can clearly say that the chances of growth are quite high for the healthcare departments in the coming few years. The purchase of fixed assets has been recognized at the initial cost as per the current financial statements. The department’s intangible assets are comprised of internal development of the system that can be useful for the company. It has been determined that the departments of health organizations in Australia are generally having certain major problems such as public hospitals and a sufficient amount of resources. However, the operational cost incurred for the development of these problems is quite high. Thus, it is very much challenging for the department to manage its performance throughout the financial years. Moreover, in terms of financial performance, they are sufficient enough to handle any kind of cash related problems because it is having a reliable amount as revenue during the years. In the year 2018, it is having a total amount of $ 6965 as surplus which will be used to continue its operations in the next years accurately. The departments have also gained a certain amount from local government as $ 2439 as well as have sales of goods and rendering of services value worth $152905. This financial data is relevant enough to analyze that the department can easily be able to manage its business operations for the next couple of years effectively.

(D): Significant assets and liability of ACHC (Australian community home care Pty ltd)

According to the balance sheet of the department of health entity it has been recorded various assets and liabilities that are incurred during the period. The primary purpose of these assets and liability of the departments of health is to increase the total capability and return on assets within the concern level of risk. The liquidity position of the company is under control because it has been determined that the assets position is quite high in accordance with the liability. Similarly, assets management is an essential aspect for the healthcare entity because it provides a company to monitor as well as manage its assets by using a systematic method. It can further be useful for increasing the productivity and efficiency that could help the entity to maintain its market position effectively. However, it can also help to increase the chances of a high return on the investments. Thus, it is essential for the departments of health to help the management to keep track of its entire assets such as cash, loan, and accrued revenues on a constant basis. It can assist them to streamline its operational expenses effectively and increase the potential growth position in the market. In regard to the debt, the suppliers of medical equipment, subsidies offers, and personal benefits offer could also be managed closely so that chances of loss incurred during the time can be managed accordingly.

• CONCLUSION

Throughout the entire report, it has been concluded that the department of health entity is having a strong financial position of ACHC (Australian community home care Pty ltd). The balance sheet of the ACHC (Australian community home care Pty ltd) is showing positive information regarding the assets and liability position. The assets are increasing day-by-day as the debt obligation as also been under the control.