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National Blood Authority—Report for 2016-17


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NATIONAL BLOOD AUTHORITY AUSTRALIA

ANNUAL REPORT 2016-17

NATIONAL BLOOD AUTHORITY AUSTRALIA

ANNUAL REPORT 2016-17

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The content obtained from this document or derivative of this work must be attributed as the National Blood Authority Annual Report 2016-17.

ISSN 1832-1909

This report is available online at www.blood.gov.au/about-nba

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Phone: +61 2 6151 5000 Fax: +61 2 6151 5300 Email: media@blood.gov.au

Website: www.blood.gov.au

NBA ANNUAL REPORT / 2016-17 ii

LETTER OF TRANSMITTAL

iii LETTER OF TRANSMITTAL

CONTENTS

Letter of Transmittal iii

PART 1: OVERVIEW 1

Organisation at a glance 2

Chief Executive review 8

NBA Board and report 14

PART 2: ANNUAL PERFORMANCE 19

Annual performance reporting statement 20

Objective 1. Secure the supply of blood and blood products 28

Objective 2. Improve risk management and blood sector performance 46

Objective 3. Promote the safe and efficient use of blood and blood products 61

PART 3: MANAGEMENT AND ACCOUNTABILITY 75

Structure, governance and authority in the blood sector 76

Planning framework 81

Customer service charter 84

External scrutiny 84

Fraud control 85

Human resources and people management 86

PART 4: FINANCIAL MANAGEMENT 95

Financial management 96

Financial performance 98

Assets management 102

Purchasing 103

Financial statements 106

NBA ANNUAL REPORT / 2016-17 iv

PART 5: APPENDICES 149

Appendix 1. Committee and Board Member Profiles 150

Appendix 2. Fresh blood components supplied under contract by the Blood Service in 2016-17 158

Appendix 3. Plasma and recombinant products supplied under contract in 2016-17 160

Appendix 4. Mandatory Reporting 164

Appendix 5. List of Requirements 172

Appendix 6. Acronyms and Abbreviations 180

Index 183

TABLES

1.1 Government funding for the supply of blood and blood products, 2007-08 to 2016-17 3

2.1 Blood and blood products purchased, by supplier, 2011-12 to 2016-17 29

2.2 Fresh blood expenditure: increases over the last 10 years 31

2.3 Blood Service: selected key performance indicators, 2016-17 40

2.4 CSL Behring (Australia) Pty Ltd’s performance under the CAFA, 2016-17 42

2.5 Imported IVIg: Key performance indicators, by supplier, 2016-17 43

2.6 Imported plasma and recombinant blood products: key performance indicators, by supplier, 2016-17 45

3.1 NBA’s performance in achieving operational plan objectives, 2011-12 to 2016-17 83

3.2 Number of male and female full-time and part-time NBA staff at 30 June 2017 88

3.3 Number of male and female and ongoing and non-ongoing NBA staff at 30 June 2017 89

3.4 Age demographic of NBA staff at 30 June 2017 89

3.5 Salary levels of NBA staff by classification at 30 June 2017 90

3.6 Numbers of NBA staff on types of employment agreements 90

4.1 Overall funding and expenditure for the NBA in 2016-17: a summary 97

4.2 Key results in financial performance, 2012-13 to 2016-17 98

4.3 Administered revenue, 2012-13 to 2016-17 100

4.4 Key results of administered expenses, 2012-13 to 2016-17 100

4.5 Expenditure on consultancy services, 2012-13 to 2016-17 104

5.1 Fresh blood components supplied under contract by the Blood Service, 2016-17 159

5.2 Plasma and recombinant products supplied under contract, 2016-17 160

5.3 NBA Environmental performance indicators 166

CONTENTS v

FIGURES

1.1 NBA Organisation as at 30 June 2017 4

2.1 Returns to Government 2012-13 to 2016-17 32

2.2 Red Cells issued by the Blood Service and per ’000 population 2012-13 to 2016-17 33

2.3 Platelets issued by the Blood Service and per ’000 population 2012-13 to 2016-17 33

2.4 Whole blood to apheresis plasma for fractionation 2011-12 to 2016-17 34

2.5 Plasma derived and overseas product expenditure: cumulative increases on 2003-04 base year 35

2.6 Issues of Factor VIII products 2012-13 to 2016-17 per ’000 population 35

2.7 Issues of Factor IX products 2012-13 to 2016-17 per ’000 population 36

2.8 Issues of Factor VIIa products 2012-13 to 2016-17 per ’000 population 36

2.9 Issues of FEIBA, 2012-13 to 2016-17 per ’000 population 37

2.10 Issues of Ig products, 2012-13 to 2016-17 per ’000 population 38

3.1 Governance and Authority in the Blood Sector 76

3.2 Governance and Authority in the NBA 78

3.3 NBA Planning Framework 82

3.4 NBA Organisation as at 30 June 2017 87

NBA ANNUAL REPORT / 2016-17 vi

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CONTENTS vii

1 PART

ORGANISATION AT A GLANCE

CHIEF EXECUTIVE REVIEW

NBA BOARD AND REPORT

OVERVIEW

PART 1

ORGANISATION AT A GLANCE

Our Vision Saving and improving Australian lives through a world-class blood supply.

Our Role The National Blood Authority (NBA) is a statutory agency within the Australian Government Health portfolio that manages and coordinates arrangements for the supply of blood and blood products and services on behalf of the Australian Government and state and territory governments.

The key roles of the NBA are to:

• provide an adequate, safe, secure and affordable supply of blood products, blood related products and blood related services

• promote safe, high quality management and use of blood products, blood related products and blood related services in Australia.

The NBA • works with jurisdictions to determine the clinical requirements for blood and blood products and develop an annual supply plan and budget

• negotiates and manages national contracts with suppliers of blood and blood products to obtain the products needed

• assesses blood supply risk and develops commensurate contingency planning

• supports the work of the jurisdictions to improve the way blood products are used - including developing and facilitating strategies and programs that will improve the safety, quality and effectiveness of blood usage, particularly in the areas of national standards, guidelines and data capture and analysis

• provides expert advice to support government policy development, including identification of emerging risks, developments, trends and new opportunities

• manages the evaluation of proposals for blood sector improvements, including proposals for new products, technologies and system changes

• provides secretariat support to the Jurisdictional Blood Committee (JBC).

NBA ANNUAL REPORT / 2016-17 2

Authority The NBA was established by the National Blood Authority Act 2003 following the signing of the National Blood Agreement by all state and territory health ministers in November 2002. As a material statutory agency, the NBA has a range of corporate and compliance responsibilities under the National Blood Authority Act 2003, the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and the Public Service Act 1999, along with a responsibility to meet ministerial, parliamentary and financial reporting requirements.

Responsible Ministers and Portfolio The NBA exists within the portfolio responsibilities of the Minister for Health. The NBA General Manager is the Chief Executive of the NBA and is a statutory officer responsible to the Commonwealth Minister for Health and the Council of Australian Governments (COAG) Health Council.

Our Outcome Access to a secure supply of safe and affordable blood products and coordination of best practice standards within agreed funding policies under the national blood arrangements.

Funding Under the National Blood Agreement between the Australian Government and the states and territories, 63 per cent of NBA funding is provided by the Australian Government and the remaining 37 per cent is provided by the state and territory governments. The funding covers both the national blood supply and the operations of the NBA.

In the last ten years, governments have provided funding of $9,515.0 million for the supply of blood and blood products as detailed in Table 1.1. In 2016-17, the total amount provided was $1,046.3 million. Governments provided funding of $9.4 million in 2016-17 for the operation of the NBA.

TABLE 1.1 Government funding for the supply of blood and blood products, 2007-08 to 2016-17

Year Amount ($M) Growth (%)

2007-08 719.5 12.5

2008-09 806.8 12.1

2009-10 878.8 8.9

2010-11 939.2 6.9

2011-12 1,015.6 8.1

2012-13 1,049.3 3.3

2013-14 1,095.9 4.4

2014-15 922.7 -15.8

2015-16 1,040.9 12.8

2016-17 1,046.3 0.5

Total 9,515.0 5.4 (average)

Note: Figures balance to the Audited Financial Statements

PART 1 OVERVIEW 3

Our Staff As at 30 June 2017, the NBA had an average staffing level of 53 staff. At this date, it also employed 25 contract staff. The organisational structure at 30 June 2017 is shown at Figure 1.1.

Deputy General Manager/ General Counsel

Legal Services

Chief Executive / General Manager

Secretariat / Communications

Executive Director, Supply Management Plasma & Recombinant Products

Chief Information Officer

Health Provider Engagement

Business Support

Immunoglobulin Governance

Research & Development

Horizon Scanning

Human Resources Blood Operations

Centre

Information Management

Supply Management Plasma & Recombinant Products

Executive Director, Fresh Blood, Data & Clinical Development

Blood Sector Clinical Development

Data & Information Analysis

Supply Management Fresh Blood

Executive Support Group

Chief Financial Officer

FIGURE 1.1 NBA Organisation as at 30 June 2017

Location The NBA staff are located in Canberra at Level 2, 243 Northbourne Avenue, Lyneham ACT.

Key Events in the NBA’s History 2003 Established by the National Blood Authority Act 2003 following the signing of the National Blood Agreement by all state and territory health ministers in November 2002

2004 Commencement of national supply arrangements for imported intravenous immunoglobulin (IVIg) to ensure sufficiency of supply in all jurisdictions

2005 Commencement of an adequate supply of recombinant Factors VIII and IX to fully meet demand

2006 NBA executed a Deed of Agreement with the Australian Red Cross Society for the provision of fresh blood products and plasma for fractionation

NBA won the Prime Minister’s Silver Award for Excellence in Public Sector Management for procurement of recombinant (manufactured) products

2007 First edition of Criteria for the clinical use of IVIg in Australia was approved

NBA ANNUAL REPORT / 2016-17 4

2008 Launch of the National Blood Supply Contingency Plan (NBSCP) to provide clear governance for managing blood shortages

Launch of the redeveloped Australian Bleeding Disorders Registry (ABDR) to better support planning and clinical management of people with bleeding disorders

2009 Establishment of the Australian National Haemovigilance Program to report on serious transfusion related adverse events

NBA was awarded the Australian Government Comcover Award for Excellence in Risk Management for the NBSCP

2010 New CSL Australian Fractionation Agreement came into effect

NBA won a United Nations Public Service Award in the Advancing Knowledge Management in Government category

2011 National rollout of BloodNet, an online web based blood ordering system

Release of the first module (Critical Bleeding/Massive Transfusion) of the Patient Blood Management (PBM) Guidelines

2012 Release of PBM Guidelines Module 2 Perioperative and Module 3 Medical

Second edition of IVIg Criteria in Australia was published

2013 Release of PBM Guidelines Module 4 Critical Care

Inaugural National Blood Symposiums conducted in Sydney, Melbourne and Adelaide

2014 National rollout of MyABDR

Inaugural PBM Conference held in Perth

Immunoglobulin governance program and National Immunoglobulin Governance Advisory Committee established

2015 NBA won ACT iAwards in three categories for innovation surrounding the development of BloodNet interfaces with health provider laboratory information systems

National Blood Symposium held in Brisbane, including the presentation of the inaugural National Blood Awards for Excellence in the Management of Blood

Release of PBM Guidelines Module 5 Obstetrics and Maternity

2016 A new Deed of Agreement was finalised with the Australian Red Cross Society for the provision of fresh blood products and plasma for fractionation supplied by the Australian Red Cross Blood Service

Release of PBM Guidelines Module 6 Neonatal and Paediatrics

Release of National Haemophilia Guidelines developed with the Australian Haemophilia Centre Directors’ Organisation (AHCDO)

National Blood Sector Research and Development Pilot commenced

BloodSTAR launched for registration by hospitals and clinicians

2017 The Deed of Agreement with the Australian Red Cross Society for the provision of fresh blood products and plasma for fractionation supplied by the Australian Red Cross Blood Service implemented on 1 July 2016

BloodSTAR implemented in most states and territories

Round 2 of the National Blood Sector Research and Development Pilot commenced

Redevelopment of BloodNet commenced (BloodNet 5)

Negotiations to replace CSL Australian Fractionation Agreement commenced

PART 1 OVERVIEW 5

Year at a Glance: Snapshot of the blood sector in 2016-17

KEY ACHIEVEMENTS

DELIVERY OF UNINTERRUPTED SUPPLY TO MEET CLINICAL DEMAND AT A SIGNIFICANT SAVING OF $49.1 MILLION

A REDUCTION IN RED CELL WASTAGE FROM 2.8% TO 2.3% SAVING $1.4 MILLION

BLOODSTAR IMPLEMENTED IN MOST STATES AND TERRITORIES

Issuing

636,690 UNITS OF RED CELLS ISSUED

130,833 UNITS OF PLATELETS ISSUED

3,105,183 GRAMS DOMESTIC Ig ISSUED

2,437,328 GRAMS IMPORTED Ig ISSUED

Donating

483,621 TOTAL ACTIVE DONORS

148,912 NUMBER OF PLASMAPHERESIS DONORS

1,309,355 B L O OD DONATIONS

Ordering (BloodNet)

203,081 NUMBER OF BLOODNET ORDERS

556

AVERAGE NUMBER OF ORDERS PER DAY

2,132,904 NUMBER OF UNITS RECEIVED BY BLOODNET FACILITIES

99%

NATIONAL UPTAKE ON BLOODNET FATE MODULE

174

LABORATORIES INTERFACED WITH BLOODNET

Supplying

$582.4 MILLION FRESH BLOOD COMPONENTS

$500.0 MILLION PLASMA DERIVED & RECOMBINANT

PRODUCTS

$4.61 MILLION DIAGNOSTIC REAGENTS

Managing

6,315 PATIENTS REGISTERED IN ABDR

6.94 DAYS AVERAGE AGE OF RED BLOOD CELLS AT ISSUE

14,575 DISCARDS OF RED BLOOD CELLS

425,000 REGISTERED USERS OF BLOODSAFE eLEARNING

18,373 GUIDELINE &

CRITERIA PUBLICATIONS

DISTRIBUTED

Budgeting

$1,046.3 MILLION GOVT FUNDING FOR PRODUCT

SUPPLY

$9.4

MILLION OPERATIONAL FUNDING

$49.1 MILLION SAVING TOGOVERNMENTS

199,335 UNIQUE VISITORS TO NBA WEBSITE

Collecting and Processing

637

TONNES OF PLASMA COLLECTED

75

FIXED COLLECTION SITES

4

MANUFACTURING AND TESTING SITES

Transfusing

1,626 PATIENTS

RECEIVING PRODUCT

FOR

BLEEDING

DISORDERS

NBA ANNUAL REPORT / 2016-17 6

Year at a Glance: Snapshot of the blood sector in 2016-17

KEY ACHIEVEMENTS

Issuing

636,690 UNITS OF RED CELLS ISSUED

130,833 UNITS OF PLATELETS ISSUED

3,105,183 GRAMS DOMESTIC Ig ISSUED

2,437,328 GRAMS IMPORTED Ig ISSUED

Donating

483,621 TOTAL ACTIVE DONORS

148,912 NUMBER OF PLASMAPHERESIS DONORS

1,309,355 B L O OD DONATIONS

Ordering (BloodNet)

203,081 NUMBER OF BLOODNET ORDERS

556

AVERAGE NUMBER OF ORDERS PER DAY

2,132,904 NUMBER OF UNITS RECEIVED BY BLOODNET FACILITIES

99%

NATIONAL UPTAKE ON BLOODNET FATE MODULE

174

LABORATORIES INTERFACED WITH BLOODNET

Supplying

$582.4 MILLION FRESH BLOOD COMPONENTS

$500.0 MILLION PLASMA DERIVED & RECOMBINANT

PRODUCTS

$4.61 MILLION DIAGNOSTIC REAGENTS

Managing

6,315 PATIENTS REGISTERED IN ABDR

6.94 DAYS AVERAGE AGE OF RED BLOOD CELLS AT ISSUE

14,575 DISCARDS OF RED BLOOD CELLS

425,000 REGISTERED USERS OF BLOODSAFE eLEARNING

18,373 GUIDELINE &

CRITERIA PUBLICATIONS

DISTRIBUTED

Budgeting

$1,046.3 MILLION GOVT FUNDING FOR PRODUCT

SUPPLY

$9.4

MILLION OPERATIONAL FUNDING

$49.1 MILLION SAVING TOGOVERNMENTS

199,335 UNIQUE VISITORS TO NBA WEBSITE

Collecting and Processing

637

TONNES OF PLASMA COLLECTED

75

FIXED COLLECTION SITES

4

MANUFACTURING AND TESTING SITES

Transfusing

1,626 PATIENTS

RECEIVING PRODUCT

FOR

BLEEDING

DISORDERS

NEW DEED OF AGREEMENT WITH THE AUSTRALIAN RED CROSS SOCIETY IMPLEMENTED

IMPLEMENTED PATIENT BLOOD MANAGEMENT

RESEARCH AND DEVELOPMENT STAGE 2 GRANTS AWARDED

PART 1 OVERVIEW 7

CHIEF EXECUTIVE REVIEW

John Cahill commenced as Chief Executive of the National Blood Authority on 4 October 2016.

He has come to this role from a position as First Assistant Secretary in the Commonwealth Department of Health. He brings wide ranging policy, program, operations, service delivery and corporate management knowledge and experience, including more than 23 years’ experience as a senior executive with various federal government departments and agencies.

His most recent roles have involved the leadership and management of major projects and the delivery of challenging and complex services across Australia and in Australia’s partner countries in relation to highly sensitive and contested policy development and implementation. This has included the management and delivery of significant health services, infrastructure services, major procurement and the management of contracts with a value in excess of A$10 billion. It has also included difficult security and logistics operations.

John was inaugural Chief Executive of Biosecurity Australia, responsible for successfully establishing and leading that Agency to undertake independent science-based risk assessments of animal and plant health risks to Australia and provide policy advice to government on these issues. He had previously worked in senior executive roles involving large and complex operations delivering Australia’s quarantine border controls relating to animal, plant and human health issues. He has also been responsible for delivering substantial corporate management, governance and related services including HR, finance and ICT. He has extensive leadership and management experience in a commercially operating regulatory authority with budgets exceeding $300 million annually and more than 3,000 geographically dispersed staff.

It was clear to me on my commencement as Chief Executive of the NBA that the NBA is a high performing, well regarded organisation doing important work in the blood sector.

The year just concluded has seen the delivery of significant projects and outcomes by the NBA in relation to the provision of a secure and affordable supply of blood products, improving immunoglobulin governance, developing and implementing guidance and programs for the appropriate management, use and reduced wastage of blood products, and ICT and data collection and development.

NBA ANNUAL REPORT / 2016-17 8

A snapshot of some key highlights for the year are as follows:

• The Australian Red Cross Blood Service (Blood Service) is the sole supplier of fresh blood products. The provision of fresh blood products under the Deed of Agreement is an essential clinical service that saves lives every day. The NBA has an ongoing program with the Blood Service to improve contract performance and accountability under the Deed. The NBA implemented a new nine year Deed of Agreement with the Blood Service on 1 July 2016 and included a three year funding and service agreement. This represented the culmination of a number of years of collaborative work between Blood Service and NBA teams to work through all aspects of the service and funding arrangements

• The CSL Australian Fractionation Agreement (CAFA) is the NBA’s contract with CSL Behring (Australia) Pty Ltd for the manufacture of plasma derived products for Australian use. The CAFA expires on 31 December 2017. In March 2017, senior representatives of the NBA met with CSL Behring (Australia) Pty Ltd to commence substantive negotiations on a new National Fractionation Agreement for Australia that is due to commence on 1 January 2018

• Under the National Immunoglobulin Governance Program, the NBA continued to work with the National Immunoglobulin Governance Advisory Committee throughout the year to strengthen the governance and management of government-funded immunoglobulin products and deliver positive changes to benefit the thousands of Australians reliant on this product. The NBA also worked with our Clinical Specialist Working Groups to continue evolving the Criteria for the clinical use of intravenous immunoglobulin in Australia (the Criteria). This is to ensure government-funded immunoglobulin products are directed to the patients who are most likely to benefit from using these products based on reliable evidence and where alternative therapies were limited. Following on from last year’s completion of revisions to conditions where immunoglobulin can be categorised as having either an ‘established therapeutic role’ or an ‘emerging therapeutic role’, a public consultation was conducted. This public consultation invited feedback on the changes proposed to conditions categorised as for use in ‘exceptional circumstances only’. The NBA is grateful to the members of the public and others who took the time to review the consultation documents and provide submissions

• Complementing this portfolio of work, the NBA successfully launched BloodSTAR. This is a national immunoglobulin ordering and outcomes database which has been designed to enable the generation of whole of system performance data to support continuous improvement and drive the accuracy and efficiency of access and authorisation processes well into the future. Following its launch, a total of 6,868 existing patients in most states and territories have so far been transitioned to the new system in a staged but seamless process that achieved continuity of health care for affected patients. The new electronic authorisation system replaces paper-based and phone processes for immunoglobulin products and standardises access and supply arrangements. BloodSTAR is the result of years of planning, development and testing not only within the NBA but across all Australian governments, and in collaboration with patients, clinicians and health service providers. As the NBA prepares for BloodSTAR implementation in New South Wales, we wish to express our gratitude to everyone who has contributed to the success of this important project

• On 11 November 2016 the PathWest laboratory at Fiona Stanley Hospital in Perth, Western Australia, placed the 1,000,000 order in BloodNet. This was a significant milestone for the BloodNet system which was introduced in 2011 as a national system that allows staff in health facilities across Australia to order blood and blood products in a standardised, quick, easy and secure way from the Blood Service. The milestone was marked with the presentation of a commemorative award from NBA Chief Executive Mr John Cahill to PathWest Laboratory Senior Scientist Ms Annette Le-Viellez

PART 1 OVERVIEW 9

• Ms Gayle Ginnane was re-appointed Chair of the NBA Advisory Board this year, along with the reappointments of Adjunct Professor Chris Brook PSM and Deputy Secretary Mark Cormack from the Commonwealth Department of Health. There were also two new eminent appointments to the Board: Professor Lyn Beazley AO and Associate Professor Alison Street AO. Continuing members are Ms Patti Warn and Mr Paul Bedbrook. We would like to thank Professor George Rubin, whose Board term has expired, for his contribution to the work of the Board and the NBA over a number of years

• The NBA successfully concluded the second funding round under the National Blood Sector Research and Development Pilot. This is an exciting initiative which initially focussed on key areas of potential research to support the patient blood management and immunoglobulin governance programs

• In late 2016, a breach of data security occurred in relation to some donor information held by the Blood Service. The breach arose from unauthorised access being obtained to donor information held in an insecure environment by a third party provider that develops and maintains the Blood Service’s website. The Blood Service took immediate steps to notify all donors and governments and to enhance security of systems. A Taskforce was established and the NBA worked closely with the Blood Service over many months to ensure all risks were addressed. A number of internal and external reviews were conducted, including by the Australian Information and Privacy Commissioner. The Commissioner commended the Blood Service’s handling of the incident and the Blood Service has entered into an enforceable undertaking to address the Commissioner’s findings. The NBA also reviewed and improved its own data and ICT security in light of the incident

• Governments funded a pilot project for two plasma only donor centres. New technologies and processes will be trialled by the Blood Service with the aims of improving the efficiency of plasma and reducing costs. Two pilot plasma only centres are being developed, to be located in Townsville and Canberra. The Townsville centre is due to open in September 2017, and the Canberra centre in March 2018

• Following a successful tender process, in October 2016 the NBA entered into a contractual arrangement with CSL Behring (Australia) Pty Ltd to supply C1 Esterase Inhibitor Concentrate (Berinert) for the following indications for hereditary angioedema: treatment of acute attacks; pre-procedural (short term) prophylaxis for high risk procedures such as dental work, head or neck surgery, or surgery requiring intubation; and as a routine (long term) prophylaxis for patients who experience the equivalent of eight or more acute attacks per month

• The NBA commenced the redevelopment of BloodNet (BloodNet 5) in August 2016 with a series of visits to hospital/laboratory sites to understand usability and enhancement requirements. The implementation of BloodNet 5 is expected in 2017-18

• The NBA successfully passed the Digital Transformation Agency (DTA) digital service standard alpha assessment of the BloodNet 5 application in March 2017. In doing so, the NBA was the first Commonwealth agency to pass this assessment unassisted by the DTA

• During 2016-17 the NBA continued its work with key stakeholders to implement BloodNet-Laboratory Information System (LIS) interfaces under a new set of specifications. NSW Pathology North went live in October 2016 as the first BloodNet-LIS site certified and QLD Pathology Queensland went live in June 2017. All BloodNet-LIS interfaces currently in place account for processing 35 per cent of national issues of fresh blood products

• The NBA has continued to use flexible staffing arrangements to ensure it can employ adequate staff to deliver against the demands and expectations reflected in the work program and funding determined by jurisdictional governments. As a small agency, the approved staffing level continues to challenge the organisation and how it can ensure it has the best and most stable workforce to most appropriately manage functions and funding in excess of $1 billion. This will continue to be a challenge in 2017-18

• The NBA has reframed its internal governance arrangements to ensure there is a more orderly, resilient and transparent process of decision-making, governance, accountability and risk management.

NBA ANNUAL REPORT / 2016-17 10

Ensuring the supply of blood products The NBA’s primary responsibility is to ensure Australia has a safe, secure, adequate and affordable supply of blood and blood related products to meet clinical demand. The clinical demand for blood and blood related products in Australia was met without interruption. A saving of $49.1 million was achieved against the annual budget approved and funded by all jurisdictional governments. This saving brings the total amount of funding returned to governments over the last five years to $495.6 million.

The year saw further improvement in the appropriate use of fresh blood. The 2016-17 demand for red cells decreased by 1.4 per cent. This result builds on the progress already made in this strategic planning cycle to bring the total reduction in red cell demand over the last five years to 22 per cent, realising significant improvements in patient outcomes and financial savings of $103 million. Demand for platelets remained steady with no increase in demand in 2016-17 over 2015-16.

Improvements in supply performance and efficiency under the new Deed of Agreement with the Australian Red Cross Society (Red Cross) once again saw the Blood Service achieve a surplus of approximately $27.3 million. This will return a 2016-17 saving of approximately $22.3 million to governments after funding of $5.0 million is retained by the Blood Service for investment in further improvements by the Blood Service under the Deed.

In mid-January 2017, the NBA released a Request for Information and Stakeholder Consultation Paper directed at potential suppliers and clinical and patient stakeholders to inform consideration of future procurement arrangements for clotting factor products, specifically recombinant factors VIIa, VIII and IX products. Final formal submissions were received on 12 April 2017. A period of further engagement followed with industry and stakeholders to clarify information around some of the issues raised and more generally to assist with understanding those issues. A summary overview of the outcomes of the stakeholder consultation is to be made available in early 2017-18 on the NBA website.

The NBA completed its annual Supply Risk and Mitigation Project to review supply security arrangements for all plasma and recombinant products. This included the validation of existing stock and contractual supply reserves.

Improving the management and use of blood products Throughout the year the NBA maintained a focus on governments’ priorities for the blood sector through activities under the key sector policies and strategies agreed by all governments, particularly the National Blood and Blood Product Wastage Reduction Strategy 2013-17 and the National Patient Blood Management (PBM) Guidelines Implementation Strategy 2013-17. An ongoing program of activities also supports the implementation of the Health Ministers’ Statement on national stewardship expectations for the supply of blood and blood products. These programs contribute to the sustainability of the blood supply by improving the management and use of blood products. In 2016-17, the NBA:

• worked with jurisdictional and clinical committees to develop the new PBM Implementation Strategy for 2017-21

• commenced a review of the 2003 Guidelines on the Prophylactic Use of Rh D Immunoglobulin (Anti-D) in Obstetrics to ensure they continue to reflect current evidence and best clinical practice

• worked with jurisdictional and clinical representatives to oversee the process for the review and update of the PBM Guidelines and to identify a more sustainable methodology for updating clinical practice guidelines in the future

• promoted the work of the NBA and engaged with stakeholders by participating in multiple national conferences and events

PART 1 OVERVIEW 11

• continued collaborative work with the Australian Commission on Safety and Quality in Health Care (ACSQHC) on a review of the National Safety and Quality Health Service (NSQHS) Standards, Standard 7: Blood and Blood Products, and the completion of the National Patient Blood Management Collaborative, focussing on identification and management of pre-operative anaemia and iron deficiency.

As I noted at the outset, 2016-17 has been another year of significant achievements for the NBA and its staff. I would like to acknowledge the contribution made by my Deputy, Michael Stone, for the extended period he acted as General Manager of the NBA following the departure of my predecessor in February 2016 until my arrival in October 2016.

I close this report by again recognising the contribution of the many stakeholders across the sector who gave generously of their time, professionalism and passion in working on some very important issues with the NBA during the year. We look forward to working with you again in 2017-18. I would also like to thank the staff of the NBA who work tirelessly and are so committed to saving and improving Australian lives through a world class blood supply.

John Cahill Chief Executive

NBA ANNUAL REPORT / 2016-17 12

STAR

Jurisdiction Northern Territory 14 July 2016

South Australia 1 August 2016

Queensland 22 August 2016

Tasmania 14 September 2016

Victoria 26 September 2016

Australian Capital Territory 24 October 2016

Western Australia 5 December 2016

New South Wales To be confirmed

Start Date Activity Responsible

1. BloodSTAR facility registration is still open (hospitals, medical clinics, private rooms) Register now to avoid transition delays

2. Confirm patient details to enable consented patients who are authorised for funded Ig to be entered into BloodSTAR

3. User Acceptance Testing Email support@blood.gov.au to register 4. BloodSTAR user registration opens Medical Officers will need to register ASAP after

April 2016 to avoid delays to patient transition

May-16 5. Publish user support materials NBA

May-16 6. System training delivery commences Blood Service and NBA

What is happening next?

Mar-16

Any interested users

Apr-16

Medical Officers Nurses

Scheduled Go-live Date

What is happening now?

In progress

Senior facility staff

In progress Blood Service

BloodSTAR roll out

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IMMUNOGLOBULIN GOVERNANCE

> SECOND EDITION > JULY 2016

National Policy: Access to Government-Funded Immunoglobulin Products in Australia

STAR

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A U S T R A L I A N H A E M O V I G I L A N C E R E P O R T

A Report by the National Blood Authority Haemovigilance Advisory Committee

DATA FOR 2013-14

Guidelines for the management of haemophilia in Australia

A joint project between Australian Haemophilia Centre Directors’ Organisation, and the National Blood Authority, Australia

RESOURCES AVAILABLE INCLUDE

More information and to download resources visit: www.blood.gov.au or www.nps.org.au/topics/surgery

FIT FOR SURGERY FIT FOR LIFE

You need iron to make haemoglobin. Haemoglobin carries oxygen from your lungs to your body.

WHY IS IRON IMPORTANT?

About 1 in 10 people in Australia have low iron levels also called iron deficiency

3 in 10 people having elective surgery have low iron or anaemia - this puts you at a much higher risk of transfusion.

IRON DEFICIENCY: THE FACTS

Dietary deficiency (iron, B12)

Gastrointestinal problems

CAUSES OF ANAEMIA

Blood loss Chronic disease

If left untreated low iron levels and anaemia can:

• delay your surgery.

• increase your chance of needing a blood transfusion.

• increase your chance of complications.

• slow down your recovery after surgery.

Having anaemia before you go in for surgery puts you at a higher risk of needing a blood transfusion.

Blood is a precious commodity and should not be used lightly.

A blood transfusion is an organ transplant and comes with inherent risks.

ACTION Your GP will assess your blood to see if you have low levels of iron or if you have anaemia. If they find you do you may need treatment.

There are other information leaflets available that will give you more information about what you need to do now that you are on the surgery waiting list. Ask your GP for the link to these resources.

FIT FOR SURGERY FIT FOR LIFE

You need iron to make haemoglobin. Haemoglobin carries oxygen from your lungs to your body.

WHY IS IRON IMPORTANT?

About 1 in 10 people in Australia have low iron levels also called iron deficiency

3 in 10 people having elective surgery have low iron or anaemia - this puts you at a much higher risk of transfusion.

IRON DEFICIENCY: THE FACTS

Dietary deficiency (iron, B12)

Gastrointestinal problems

CAUSES OF ANAEMIA

Blood loss Chronic disease

If left untreated low iron levels and anaemia can:

• delay your surgery.

• increase your chance of needing a blood transfusion.

• increase your chance of complications.

• slow down your recovery after surgery.

Having anaemia before you go in for surgery puts you at a higher risk of needing a blood transfusion.

Blood is a precious commodity and should not be used lightly.

A blood transfusion is an organ transplant and comes with inherent risks.

ACTION Your GP will assess your blood to see if you have low levels of iron or if you have anaemia. If they find you do you may need treatment.

There are other information leaflets available that will give you more information about what you need to do now that you are on the surgery waiting list. Ask your GP for the link to these resources.

Name

GP Name

Iron studies results

Treatment

Date

Iron studies results

Treatment

Date

Blood loss

Perioperative transfusion required

Number of units

Date

Iron studies results

Treatment

Reassessment Date

Preparing for surgery

Surgery Recovery

MY IRON PLAN This is your personal iron record. It’s YOUR record - so keep it with you. But you need your care team to help you fill it in. And ask your GP, your surgeon, your anaesthetist and anyone else involved in your care to help you keep it up to date.

Treatment options Not having enough iron may make you feel tired or lethargic. Although iron-deficiency anaemia is serious, it can be treated. Improving your iron level will help you feel better.

There are a number of options available to help you make sure you have enough iron.

Nutrition

Getting enough iron by eating iron-rich foods will help treat iron deficiency but will not be enough on its own.

There are two types of iron in foods, haem iron and non-haem iron. Haem iron is more easily absorbed than non-haem iron, however both types can be used by the body.

Try to keep up a good intake of iron-rich foods including, for example:

haem iron-containing foods

- lean red meat, offa l

- chicken, fish

non-haem iron-containing foods

- leafy green vegetables, wholemeal bread

- iron-fortified breakfast cereals

- legumes, eggs

Fact Sheet

Iron is needed to make haemoglobin which red blood cells need to move oxygen around your body. Iron is also needed to make myoglobin which helps your muscles store oxygen.

Fact Sheet | Managing my iron

Managing my iron

Eating haem iron-rich foods will increase absorption of non-haem iron.

- Include vitamin C-rich foods such as citrus fruit in your diet as it will help your body absorb iron.

Oral iron therapy Your doctor may prescribe oral iron if you are at risk of or have iron deficiency. Some people are at higher risk such as:

- toddlers, preschool children and adolescents

- pregnant women

- people with excessive blood loss

- people with conditions such as coeliac disease

There are many iron supplements available.

Speak with your doctor about which one is best for you. Over-the-counter supplements with iron, such as multivitamin-mineral supplements, do not generally have enough iron to treat iron-deficiency anaemia.

Look for supplements that have 60 mg or more of elemental iron (eg, Elevit and Ferro-Grad C).

Why is getting fit for surgery important?

It’s important to have a conversation with your doctor ahead of the surgery so they can assess your risk and tell you what steps to take before the surgery.

One of the most important factors to assess is whether you have iron deficiency and/or anaemia.

Anaemia occurs when there are not enough red blood cells in your body, or the blood cells do not have enough haemoglobin to carry oxygen to your tissues (caused by iron deficiency).

Anaemia, if left untreated, may mean that the hospital has to delay your surgery. If surgery goes ahead and you lose blood, you may need a blood transfusion. Having a blood transfusion may make your recovery much slower.

The good news is that anaemia is easily treatable, and the sooner you find out if you are anaemic the sooner you can start treatments to help.

It is also important to find out if you are at a higher risk of bleeding during surgery, as there are several steps you can take to reduce your risk.

Fact Sheet

Now that you are on the waiting list for surgery there are actions you should be taking to make sure you are as fit as possible. This will help you achieve the best outcomes from the surgery and help in your recovery.

Fact Sheet | Fit for surgery

Fit for surgery

You may be at a higher risk of bleeding because of the medicines you are taking, your medical history or current medical conditions. The type of surgery may also carry an increased risk of bleeding.

Getting fit for surgery means assessing your risks of complications and treating any that can be treated.

Will I need any medical tests?

Your doctor will need to know if you are likely to experience a bleed during your upcoming surgery. This will involve asking you questions about your family history and whether you personally have experienced excessive bleeding in the past either before, or after, surgery.

Your doctor will probably do a blood test to determine whether you have anaemia. This will let them and you know whether you have iron deficiency, or low levels of red blood cells, and how severe it is. This will tell your doctor what the best treatment course will be.

It’s important to get tested and start treatment early to ensure that there are no delays to your surgery.

Why might I need a blood transfusion? Your body needs a certain amount of red blood cells in order to effectively transport oxygen and nutrients. Sometimes you may need a transfusion of donor blood to replace blood that has been lost too rapidly during surgery or after a traumatic event.

What should I expect during a blood transfusion? Before the transfusion begins, an identification check should be done to ensure you’re being given the correct blood. You may feel a prick or a sting when the needle is inserted into your vein, and some pressure as the blood is transfused, but most patients will not feel any pain or discomfort. A nurse will monitor you throughout the procedure.

The time it takes for a blood transfusion varies depending on how much blood you need, but is usually less than 4 hours, and can be as short as an hour.

Fact Sheet

Blood transfusions are life saving for some patients but transfusions do carry risks of other medical problems. This fact sheet outlines what you need to know if you do need one, and what you and your GP can do to avoid a blood transfusion. Avoiding transfusion avoids the risks.

Fact Sheet | My guide to blood transfusions

My guide to blood transfusions

What alternatives are available? There are medicines available that minimise blood loss and others that stop clots from being dissolved, as well as anaesthetic and surgical techniques to minimise blood loss.

How can I reduce the chance of needing a transfusion? Iron deficiency and anaemia are conditions that mean you have low levels of red blood cells, which significantly increases the risk of needing a red blood cell transfusion during and/or after surgery.

By treating these conditions before surgery, you may avoid the need for a blood transfusion. A blood transfusion after surgery may mean your recovery time is slower. Ask your GP to have your iron levels checked if you are planning an elective surgery. Your GP may prescribe iron supplements to increase your blood count before surgery.

FIT FOR SURGERY FIT FOR LIFE

You need iron to make haemoglobin. Haemoglobin carries oxygen from your lungs to your body.

WHY IS IRON IMPORTANT?

About 1 in 10 people in Australia have low iron levels also called iron deficiency

3 in 10 people having elective surgery have low iron or anaemia - this puts you at a much higher risk of transfusion.

IRON DEFICIENCY: THE FACTS

Dietary deficiency (iron, B12)

Gastrointestinal problems

CAUSES OF ANAEMIA

Blood loss Chronic disease

If left untreated low iron levels and anaemia can:

• delay your surgery.

• increase your chance of needing a blood transfusion.

• increase your chance of complications.

• slow down your recovery after surgery.

Having anaemia before you go in for surgery puts you at a higher risk of needing a blood transfusion.

Blood is a precious commodity and should not be used lightly.

A blood transfusion is an organ transplant and comes with inherent risks.

ACTION Your GP will assess your blood to see if you have low levels of iron or if you have anaemia. If they find you do you may need treatment.

There are other information leaflets available that will give you more information about what you need to do now that you are on the surgery waiting list. Ask your GP for the link to these resources.

FIT FOR SURGERY FIT FOR LIFE

You need iron to make haemoglobin. Haemoglobin carries oxygen from your lungs to your body.

WHY IS IRON IMPORTANT?

About 1 in 10 people in Australia have low iron levels also called iron deficiency

3 in 10 people having elective surgery have low iron or anaemia - this puts you at a much higher risk of transfusion.

IRON DEFICIENCY: THE FACTS

Dietary deficiency (iron, B12)

Gastrointestinal problems

CAUSES OF ANAEMIA

Blood loss Chronic disease

If left untreated low iron levels and anaemia can:

• delay your surgery.

• increase your chance of needing a blood transfusion.

• increase your chance of complications.

• slow down your recovery after surgery.

Having anaemia before you go in for surgery puts you at a higher risk of needing a blood transfusion.

Blood is a precious commodity and should not be used lightly.

A blood transfusion is an organ transplant and comes with inherent risks.

ACTION Your GP will assess your blood to see if you have low levels of iron or if you have anaemia. If they find you do you may need treatment.

There are other information leaflets available that will give you more information about what you need to do now that you are on the surgery waiting list. Ask your GP for the link to these resources.

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STAR

PART 1 OVERVIEW 13

NBA BOARD AND REPORT

The NBA Board was established under the National Blood Authority Act 2003 to:

• participate in consultations about the performance of the NBA’s functions with the Australian Government Minister for Health

• provide advice to the Chief Executive/General Manager about the performance of the NBA’s functions

• liaise with governments, suppliers and other stakeholders about matters relating to the NBA’s functions

• perform such other functions as specified in a written notice given by the Minister to the Chair.

Board Members Ms Gayle Ginnane - Chair Mr Paul Bedbrook - Financial Expert Professor Lyn Beazley AO - State and Territory Representative (small jurisdiction) Adjunct Professor Chris Brook PSM - State and Territory Representative (large jurisdiction) Associate Professor Alison Street AO - Public Health Expert Ms Patti Warn - Community representative Mr Mark Cormack - Australian Government representative

Outgoing members Professor George Rubin - Public Health Expert

NBA Board Members (left to right) Chris Brook PSM, Gayle Ginnane (Chair), Alison Street AO, Patti Warn, Paul Bedbrook and Lyn Beazley AO. Inset: Mark Cormack.

NBA ANNUAL REPORT / 2016-17 14

2016-17 year in review The NBA Board met four times in 2016-17 and considered and provided advice to the Chief Executive and NBA executive across a range of priority business areas including:

• blood sector systems and funding

• blood and blood product wastage

• NBA strategies

• plasma and immunoglobulin (Ig) self-sufficiency

• massive transfusion registry for patient blood management (PBM) implementation

• contract management and review issues

• new product developments.

The Board continued its stakeholder engagement program throughout the year. Key stakeholder engagements in 2016-17 involved presentations from CSL Behring and the Blood Service. The Chair and NBA Chief Executive also met with the Blood Service Board in March 2017.

The NBA Board received updates and reporting from the NBA on achievements against strategic and operational planning documents, and provided advice and input for the development of further forward plans. These items included:

• PBM collaborative project with the Australian Commission on Safety and Quality in Health Care

• Deed of Agreement with the Australian Red Cross Society

• the role of the NBA and key issues in the blood sector

• the NBA’s future priorities and planning activities

• PBM Implementation Strategy 2017-21

• Ig governance, criteria and BloodSTAR

• request for information outcome on the potential future arrangements for imported plasma and recombinant products in Australia

• the status of the 2016-17 National Supply Plan and Budget.

2017-18 priorities It was my pleasure to be re-appointed Chair of the NBA Advisory Board this year along with the reappointments of Adjunct Professor Chris Brook PSM and Mr Mark Cormack. Other appointments to the Board were Associate Professor Alison Street AO and Professor Lyn Beazley AO.

I would like to congratulate my fellow members on their appointments and I look forward to working with the reconstituted NBA Board during my re-appointment as Chair. I continue to be impressed with the wealth of knowledge and the level of expertise across the membership of the Board. It is indeed a pleasure to work with such a distinguished and committed group of experts in their respective fields.

I would also like to thank the outgoing Board member, Professor George Rubin, for his invaluable contributions during his tenure as public health expert.

PART 1 OVERVIEW 15

In the year ahead, my fellow Board members and I look forward to providing advice to the NBA on key aspects of the Authority’s work program to further improve national blood arrangements in Australia, including:

• an ongoing commitment to implementing improvements for the appropriate use of blood and blood products

• national risk assessment and management issues

• issues relating to the development of new blood sector products

• immunoglobulin governance arrangements

• advice on new or extended contract arrangements for the supply of blood products

• national guidelines development and implementation

• the development and implementation of systems to support the work of the Authority, including BloodSTAR.

On behalf of the Board, I would like to congratulate Mr John Cahill on his appointment as the Chief Executive of the NBA. I would also like to thank Mr Michael Stone for his leadership and hard work during his tenure as acting General Manager this financial year. The Board looks forward to working with John and the NBA executive into the future.

In closing, on behalf of the Board, I extend my congratulations to the staff of the NBA for their hard work, passion and dedication. They have once again delivered on the Authority’s outcomes and they should be proud of their achievements.

Gayle Ginnane Chair National Blood Authority Board

NBA ANNUAL REPORT / 2016-17 16

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PART 1 OVERVIEW 17

2 PART

ANNUAL PERFORMANCE REPORTING STATEMENT

OBJECTIVE 1. SECURE THE SUPPLY OF BLOOD AND BLOOD PRODUCTS

OBJECTIVE 2. IMPROVE RISK MANAGEMENT AND BLOOD SECTOR PERFORMANCE

OBJECTIVE 3. PROMOTE THE SAFE AND EFFICIENT USE OF BLOOD AND BLOOD PRODUCTS

ANNUAL PERFORMANCE

PART 2

ANNUAL PERFORMANCE REPORTING STATEMENT

Accountable Authority statement I, as the accountable authority of the National Blood Authority, present the 2016-17 Annual Performance Statements of the National Blood Authority, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act.

John Cahill Chief Executive National Blood Authority

NBA ANNUAL REPORT / 2016-17 20

Introductory statement

The enhanced Commonwealth performance framework1 newly established under the Public Governance, Performance and Accountability Act 2013 requires a Commonwealth entity such as the National Blood Authority to include an annual performance statement in its annual report.

The purpose of the annual performance statement, as a key element of the enhanced Commonwealth performance framework, is to explain the extent to which the agency has achieved its objectives in the relevant year, against the measures for assessing performance set out in both the entity’s corporate plan and its portfolio budget statements.

The Annual Performance Statements detail results achieved against the planned performance criteria set out in the 2016-17 NBA Portfolio Budget Statements, and the 2016-17 NBA Corporate Plan2.

In accordance with paragraph 17(2)(b) of the PGPA Rule, the NBA audit committee has reviewed the National Blood Authority’s performance reporting through this annual performance statement and considers it appropriate in the context of transition to the full requirements of the enhanced Commonwealth performance framework.

The role of the National Blood Authority is to:

1. provide an adequate, safe, secure and affordable supply of blood products, blood related products and blood related services, and

2. promote safe, high quality management and use of blood products, blood related products and blood related services in Australia.

The National Blood Authority represents the interests of the Australian and state and territory governments, and is established within the Australian Government’s Health portfolio.

1 The enhanced Commonwealth performance framework, as relevant for the NBA, is set out in Part 2-3 of the Public Governance, Performance and Accountability Act 2013 and Part 2-3 of the Public Governance, Performance and Accountability Rule 2013, together with the following Resource Management Guides released in May 2017: RMG N0. 130 Enhanced Commonwealth performance framework, RMG No. 131 Developing good performance information, RMG No. 132 Corporate plans for Commonwealth entities, RMG No. 134 Annual Performance Statements for Commonwealth entities and RMG No. 136 Annual reports for Commonwealth entities (http://www.finance.gov.au/resource-management/performance/ ). 2

https://www.blood.gov.au/system/files/documents/2016-19Corporate-Plan-v5webversion.pdf

PART 2 ANNUAL PERFORMANCE REPORTING 21

Performance results

1. Providing a safe, secure and affordable supply of blood and blood products

The NBA worked with state and territory governments and suppliers so that requirements for day-to-day product supply and future demand were well managed. The nine year Deed of Agreement between the NBA on behalf of all governments and the Australian Red Cross Society for the provision of blood and blood products and services was implemented on 1 July 2016. Key reporting obligations have been met and a transition process put in place for the delivery against the National Service Requirements and Standards. Supply of blood and blood products has been uninterrupted with no periods of shortage. Demand for fresh blood products has decreased over 2016-17.

Performance criteria from Portfolio Budget Statements:

Qualitative Deliverable 2016-17 Reference Point or Target 2016-17 Results Against Performance Criteria

New Australian Red Cross Blood Service contract arrangements are progressed.

The new Deed of Agreement with the Australian Red Cross Society is implemented from 1 July 2016.

The new Deed of Agreement was implemented and transition arrangements put in place for National Service Requirements and Standards.

Qualitative Indicator 2016-17 Reference Point or Target 2016-17 Results Against Performance Criteria

Provision of an adequate, affordable and secure supply of blood and blood products.

Blood products are available to meet clinical need. Blood and blood products available to meet clinical

demand. There were no supply contingency events during the reporting period.

NBA ANNUAL REPORT / 2016-17 22

Quantitative Indicator 2015-16 Revised

Budget

2016-17 Budget Target

2017-18 Forward Year 1

2018-19 Forward Year 2

2019-20 Forward Year 3

2016-17 Results Against Performance

Criteria

Variance between actual and NBA estimated demand for supply of products.

<5% <5% <5% <5% <5% Variance between

actual and NBA estimated demand for supply of products was -4.3%.

Performance Criteria Source: Portfolio Budget Statements, p.352

2. Improve risk management and blood sector performance In 2016-17, the NBA undertook a number of initiatives to improve the efficiency and effectiveness of the blood supply network. The NBA continued to implement the National Inventory Management Framework with health providers ensuring red blood cell stocks were managed in the most efficient manner and stock targets were appropriate to ensure minimal wastage. The NBA has further consolidated savings from the fourth year of implementing the national wastage reduction strategy, approved by Governments in 2013 with a savings of some $1.4 million in 2016-17.

Performance criteria from Portfolio Budget Statements:

Qualitative Deliverable 2016-17 Reference Point or Target 2016-17 Results Against Performance Criteria

New immunoglobulin (Ig) governance arrangements are implemented.

BloodSTAR is implemented by 30 June 2017 and supports all supply authorisations for Ig.

Most states and territories now ‘live’ in BloodSTAR.

PART 2 ANNUAL PERFORMANCE REPORTING 23

Quantitative Indicator 2015-16 Revised

Budget

2016-17 Budget Target

2017-18 Forward Year 1

2018-19 Forward Year 2

2019-20 Forward Year 3

2016-17 Results Against Performance

Criteria

Percentage of national blood supply processed by laboratories interfaced to BloodNet.

30% 40% 50% 60% 80% 35 per cent of

national blood supply processed by BloodNet interfaced laboratories.

Performance Criteria Source: Portfolio Budget Statements, p.352

3. Promote the safe and efficient use of blood and blood products In 2016-17, the NBA managed the review of the Patient Blood Management (PBM) Guideline project with the aim of identifying a more sustainable methodology for reviewing and updating the guidelines.

The NBA also worked with jurisdictions and clinical stakeholders in the development of the National Patient Blood Management Implementation Strategy 2017-2021 which takes a patient-centred approach intended to optimise clinical outcomes and improve patient safety. This Strategy draws on the experiences and outcomes of the National Patient Blood Management Guidelines Implementation Strategy 2013-2017 and the National Blood Sector Education and Training Strategy 2013-2016.

In 2016-17, the NBA continued to develop materials that promote the safe and efficient use of products, informed by close engagement with clinicians. However, the NBA was unable to deliver the revision and publication of updated editions of the PBM Guidelines Modules nor develop a revised guideline for the use of Anti-D.1 These were unable to be finalised due to a revised project scope and extended stakeholder engagement processes.

In addition, the NBA continued to develop an expanded suite of tools to support health providers to implement the National Safety and Quality Health Service (NSQHS) Standard on Blood and Blood Products.2 The NBA published three tools in 2016-17 compared to the target of five. These included the peadiatric iron dose template, junior medical officer education toolkit and BloodSafe eLearning Obstetrics and Maternity Module. Two further tools were developed and these will be published in 2017-18.

1 Information on the use of Anti-D or Rh D immunoglobulin products is available at the NBA website. 2 Available at the Safety and Quality website.

NBA ANNUAL REPORT / 2016-17 24

Performance criteria from Portfolio Budget Statements:

Qualitative Indicator 2016-17 Reference Point or Target 2016-17 Results Against Performance Criteria

National data strategy and National Patient Blood Management (PBM) Guidelines Implementation Strategy are progressed.

Performance scorecard and comparator benchmark data is published by 31 December each year. The standards and minimum data sets for blood sector data are developed by 30 June 2017.

Published the endorsed National Patient Blood Management Implementation Strategy 2017-2021.

Monthly wastage comparator benchmarks published with jurisdictions. Annual performance scorecards provided as part of the annual reporting.

Minimum data set and standards published for haemovigilance.

There is a robust framework supporting best practice management and use of blood and blood products.

A sustained improvement in the management and use of blood products.

A continued and sustained improvement in the management and use of blood products demonstrated by:

• improved inventory management practices as part of the National Inventory Management Framework roll out

• reduction in wastage of red blood cells was $1.4 million in 2016-17

• reduction in product Discards as a Percentage of Net Issues (DAPI) fell from 2.8 per cent in 2015-16 to 2.3 per cent in 2016-17

• demand for red blood cells continued to decline by 1.4 per cent in 2016-17 over 2015-16, this now represents a total decrease of around 22 per cent since 2011-12.

PART 2 ANNUAL PERFORMANCE REPORTING 25

Quantitative Indicator 2015-16 Revised

Budget

2016-17 Budget Target

2017-18 Forward Year 1

2018-19 Forward Year 2

2019-20 Forward Year 3

2016-17 Results Against Performance

Criteria

Number of clinical practice guidelines published.

2 2 2 2 1 No clinical

guidelines published due to revised scope and extended stakeholder engagement processes.

Number of supporting clinical practice tools and resources made available.

N/A 5 5 5 5 5 (Five) made

available of which three were published and two will be published in 2017-18.

Performance Criteria Source: Portfolio Budget Statements, p.353

NBA ANNUAL REPORT / 2016-17 26

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PART 2 ANNUAL PERFORMANCE REPORTING 27

OBJECTIVE 1. SECURE THE SUPPLY OF BLOOD AND BLOOD PRODUCTS

It is the responsibility of the National Blood Authority (NBA) to manage the national blood supply to ensure that healthcare providers have sustainable, reliable and efficient access to blood and blood products needed for patient care. The NBA ensures blood supply security by working with states and territories to determine and manage an annual supply plan and budget and negotiating and managing blood supply contracts and arrangements with local and overseas suppliers.

National Supply Plan and Budget A key element of the NBA’s role in ensuring security of supply is to develop, coordinate and monitor the annual National Supply Plan and Budget (NSP&B), including obtaining annual approval from health ministers.

This is achieved by:

• developing a national estimate of product demand

• liaising with states and territories to refine the estimated demand for products

• collecting and distributing data on product issued and reporting variations to jurisdictions on the approved supply plan

• intensively managing products if they are in short supply.

Performance against the 2016-17 NSP&B Throughout 2016-17, products were supplied to meet clinical demand and supply risks were effectively managed. The approved budget for 2016-17 covering the supply and management of blood and blood products and services under contract was $1,153.17 million, comprising $614.63 million for fresh blood products and plasma collection (see Fresh blood products on p.31) and $519.04 million for plasma and recombinant products (see Plasma and recombinant products on p.34). The remaining $19.49 million included items such as support for the publication of PBM Guidelines, maintenance of the Australian Haemophilia Centre Directors’ Organisation (AHCDO), administration of the Australian Bleeding Disorders Registry (ABDR) and operations of the NBA. Table 2.1 identifies the NBA’s expenditure in 2016-17 and earlier years by supplier for the supply of products in each product category.

NBA ANNUAL REPORT / 2016-17 28

TABLE 2.1 Blood and blood products purchased, by supplier, 2012-13 to 2016-17.

Supplier Products Purchased 2012-13

($M)

2013-14 ($M) 2014-15 ($M)

2015-16 ($M) 2016-17 ($M)

CSL Behring (Australia) Pty Ltd

Plasma Products

• Albumin • Immunoglobulin products (Ig) (including Intravenous

Immunoglobulin (IVIg), Subcutaneous Intravenous Immunoglobulin (SCIg) and hyperimmune products) • Plasma derived

clotting factors

Diagnostic Reagent Products

• blood grouping sera • reagent red cell products

Imported Plasma and Recombinant Products

• Rh(D) Ig • Factors XI and XIII • Fibrinogen Concentrate

• C1 Esterase Inhibitor Concentrate

222.02 210.10 245.19 282.49 351.83

Australian Red Cross Blood Service

Fresh Blood Products

• whole blood • red blood cells • platelets • clinical fresh

frozen plasma • cryoprecipitate • plasma for fractionation

• cryo-depletion plasma • serum eye drops • therapeutic venesections

549.31 583.13 547.10 588.40 582.40

PART 2 ANNUAL PERFORMANCE REPORTING 29

Supplier Products Purchased 2012-13

($M)

2013-14 ($M) 2014-15 ($M)

2015-16 ($M) 2016-17 ($M)

Baxalta Australia Pty Ltd 1 Imported Plasma and Recombinant Products

• Protein C

• Factor Eight Inhibitor Bypass Agent (FEIBA)

• Recombinant Factor VIII and IX

Imported IVIg

6.302

26.76

8.25

29.20

29.11

40.30

36.62

28.35

31.45

0.00

Bayer Australia Limited Imported Plasma and Recombinant Products

• Recombinant Factor VIII

34.96 35.14 9.00 1.07 0.00

Pfizer Australia Pty Ltd Imported Plasma and Recombinant Products

• Recombinant Factor VIII

• Recombinant Factor IX

93.28 93.05 54.66 56.48 56.89

Novo Nordisk Pharmaceuticals Pty Ltd

Imported Plasma and Recombinant Products

• Recombinant Factor VIIa

33.60 27.20 32.81 36.39 24.20

Octapharma Pty Ltd Imported IVIg 49.10 46.00 70.02 47.05 0.00

Grifols Australia Imported IVIg

Diagnostic Reagent Products • blood grouping sera • reagent red

cell products

0.28

0.00

0.00

0.32

0.00

0.41

11.58

0.36

36.30

0.33

Ortho-Clinical Diagnostics (Johnson & Johnson Medical Pty Ltd)

Diagnostic Reagent Products • blood grouping sera • reagent red

cell products

0.44 0.43 0.44 0.43 0.44

1 With effect from 1 April 2015, all NBA contracts with Baxter Healthcare Pty Ltd were novated to Baxalta Australia Pty Ltd. Throughout this report, references are made to Baxalta Australia Pty Ltd. 2

In the 2012-13 annual report, Baxter Healthcare Pty Ltd imported Plasma and Recombinant Products figure of 33.06 included 6.30 Imported IVIg which has a category in subsequent reports. Care should be taken in making comparisons with previous reports.

NBA ANNUAL REPORT / 2016-17 30

Supplier Products Purchased 2012-13

($M)

2013-14 ($M) 2014-15 ($M)

2015-16 ($M) 2016-17 ($M)

Bio-Rad Laboratories Pty Ltd

Diagnostic Reagent Products • blood grouping sera • reagent red

cell products

0.63 0.57 0.52 0.48 0.54

Abacus ALS Pty Ltd Diagnostic Reagent Products

• blood grouping sera • reagent red cell products

0.04 0.04 0.00 0.00 0.00

Total Purchases of Blood and Blood Products 1,016.72 1,033.43 1,029.56 1,089.70 1,084.40

Fresh blood products The list of fresh blood products supplied in 2016-17 is at Appendix 2 Fresh blood components supplied under contract by the Blood Service. The four main products were:

1. red blood cells

2. platelets

3. clinical fresh frozen plasma

4. plasma for fractionation.

As demonstrated in Table 2.2, the increase in fresh blood expenditure has progressively moderated over the last 10 years primarily as a result of improved efficiencies in Blood Service operations, and in the last five years, a significant reduction in the demand for some fresh blood products due to improved appropriate use and reduced wastage.

TABLE 2.2 Fresh blood expenditure: increases over the last 10 years

Year Amount ($M) Growth (%)

2007-08 369.1 12.8

2008-09 417.2 13.0

2009-10 456.1 9.3

2010-11 496.6 8.9

2011-12 526.3 6.0

2012-13 549.3 4.4

2013-14 583.1 6.2

2014-15 547.1 -6.2

2015-16 588.4 7.5

2016-17 582.4 -1.0

Total 5115.6 6.09 (average)

PART 2 ANNUAL PERFORMANCE REPORTING 31

Fresh blood expenditure in 2016-17 compared to 2015-16 decreased by 1.0 per cent. Key factors that have influenced the changes include the following:

• an increase in the quantity of collected plasma for fractionation from 601 tonnes to 637 tonnes

• rebased Output Based Funding Model (OBFM) to be based on the 2014-15 actual operating costs of the Blood Service, as well as restrained annual price indexation to 2.95 per cent

• reduction in demand for some fresh products as a result of improved appropriate use and reduced wastage.

Since the implementation of the OBFM in 2010-11 where governments paid for the actual costs of producing fresh blood products supplied by the Blood Service rather than a grant based funding model, the NBA has seen returns to government year on year as highlighted in Figure 2.1. In 2016-17, $34.4 million was returned including $22.3 million for the Blood Service operating surplus and a saving from the decrease in red blood cell demand of 1.4 per cent. This compared to $63.1 million in 2015-16 (which included $42.4 million operating surplus and 3.4 per cent reduction in red blood cell demand).

20

0

40

60

80

100

120

2012-13

2013-14

2014-15

2015-16 2016-17

$ Million

FIGURE 2.1 Returns to Government 2012-13 to 2016-17

Red blood cells Red blood cells comprise approximately 23.6 per cent of total blood and blood product expenditure and are the largest item of cost in fresh products. Figure 2.2 illustrates that there was a decline in issues of red blood cells (1.4 per cent) compared to 2015-16, with continuation of the steady decline in issues per 1,000 head of population nationally from 33.3 in 2012-13 to 26.1 in 2016-17. In the last five years, demand for red cells has declined by 22 per cent, realising a saving in excess of $103 million. The decline in red cell demand is the result of the ongoing success of programs to improve appropriate use and reduce wastage. These programs encompass a range of health provider and clinical engagement activities, development of best practice guidelines and tools, improved data collection and analysis and improved education and training arrangements. The publication and implementation of the PBM Guidelines underpins much of the success in improving appropriate use of fresh blood products.

NBA ANNUAL REPORT / 2016-17 32

15

20

25

30

35

40

2012-13

2013-14

Quantity (Issued Packs) Left Hand Side (LHS)

Units per ‘000 population Right Hand Side (RHS)

900,000

800,000

700,000

600,000

500,000

400,000

2014-15 2015-16

2016-17

UNITS

UNITS PER ‘000 POPULATION

FIGURE 2.2 Red Cells issued by the Blood Service and per ’000 population 2012-13 to 2016-17

Platelets Platelets comprise 4.8 per cent of total blood and blood product expenditure. Figure 2.3 illustrates that there was no change in issues of platelets from 2015-16 and a small decrease in issues per 1,000 head of population. Platelets are either derived from an apheresis collection or a whole blood collection. In 2016-17, platelets issued were 64.6 per cent whole blood pooled (65.0 per cent in 2015-16) and 35.4 per cent apheresis (35.0 per cent in 2015-16).

2012-13

2013-14

136,000

134,000

132,000

130,000

128,000

126,000

124,000

5.30

5.50

5.70

5.90

UNITS

PER ‘000 POPULATION

2014-15

2015-16

2016-17

Quantity (Issued Packs) LHS per ‘000 population RHS

FIGURE 2.3 Platelets issued by the Blood Service and per ’000 population 2012-13 to 2016-17

PART 2 ANNUAL PERFORMANCE REPORTING 33

Plasma for fractionation

The Blood Service collects plasma for fractionation to supply to CSL Behring (Australia) Pty Ltd for the manufacture of plasma derived products. In 2016-17, the target for the quantity of plasma to be collected by the Blood Service was 631 tonnes. The Blood Service collections for 2016-17 were successful, with supply to CSL being 6 tonnes over target. The growth in apheresis plasma collection by the Blood Service over the last five years is shown in Figure 2.4 below. In 2012-13 the ratio of whole blood to apheresis plasma for fractionation was 37:63 and in 2016-17 28:72. This is in part due to the decline in red blood cell demand.

The growth in plasma collection for 2016-17 is consistent with governments’ target of 5 per cent per annum.

2012-13

50%

60%

%

70%

80%

90%

100%

40%

30%

20%

10%

0 %

Apheresis Whole Blood

2013-14

2014-15

2015-16 2016-17

FIGURE 2.4 Whole blood to apheresis plasma for fractionation 2012-13 to 2016-17

Plasma and recombinant products The cost of plasma derived and recombinant blood products issued under NBA arrangements in 2016-17 totalled $504.6 million, an increase of $0.5 million (0.1 per cent) from 2015-16. Increases in volumes for immunoglobulin (Ig), 11.2 per cent, and plasma derived factor VIII, 8.9 per cent, were the dominant factors relating to the growth in expenditure. Conversely, there were large reductions in demand for recombinant factor VIIa, 34.4 per cent and FEIBA, 45.2 per cent due to ongoing product trials in Australia. In addition there were cost reductions in recombinant factors VIII and IX following successful negotiations during recent procurement consultations that resulted in lower prices for these products. The cost of most other products increased by less than 2 per cent. The average unit price for domestically produced Ig decreased by 1.2 per cent due to the favourable price structure under the CSL Australian Fractionation Agreement (CAFA) in which price decreases with increases in volume.

In the 14 years to 2016-17, expenditure on plasma and recombinant products issued under NBA arrangements has increased from $205.2 million to $504.6 million. Key drivers of this increase are:

• $337.9 million from increased demand

• $51.8 million due to the safety based government policy decision to fund recombinant clotting factor products (rFVIII and rFIX).

NBA ANNUAL REPORT / 2016-17 34

The combined effect of demand and price drivers on expenditure can be seen in Figure 2.5. It is of note that significant improvements in price have driven a large increase in savings.

2003-04

2005-06

2007-08

2009-10

2011-12

2013-14

2015-16

2014-15

2012-13

2010-11

2008-09

2006-07

2004-05

2016-17

500

600

700

400

300

200

100

0

-100

-200

$ MILLION

Base Price increase Demand increase Safety increase

FIGURE 2.5 Plasma derived and overseas product expenditure: cumulative increases on 2003-04 base year

Issues of clotting factors In 2016-17, clotting factors comprised 12.1 per cent of total blood and blood product expenditure. Figure 2.6 indicates that the demand for Factor VIII products increased by 1.5 per cent when compared to 2015-16. The demand for recombinant Factor VIII decreased by 0.5 per cent over 2015-16. Plasma derived Factor VIII demand increased by 18.9 per cent.

Patient participation in company clinical trials for recombinant Factor VIII products continues to contribute to the variability of year-to-year product growth.

2012-13

180,000,000

200,000,000

160,000,000

140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

7,200

7,300

7,100

7,000

6,900

6,800

6,700

6,600

6,500

0

INTERNATIONAL UNITS

PER ‘000 POPULATION

Recombinant Factor VIII LHS Plasma Derived Factor VIII LHS

2013-14 2014-15 2015-16 2016-17

IUs per ‘000 population RHS

FIGURE 2.6 Issues of Factor VIII products 2012-13 to 2016-17 per ’000 population

PART 2 ANNUAL PERFORMANCE REPORTING 35

Figure 2.7 indicates that demand for Factor IX products in 2016-17 increased by 1.6 per cent compared to 2015-16. Plasma derived Factor IX demand decreased by 15.6 per cent in 2016-17 due to a reduction in specific patient requirements. Demand for Recombinant Factor IX increased by 1.6 per cent in 2016-17.

Patient participation in company clinical trials for recombinant Factor IX products continues to contribute to the variability of year-to-year product growth.

2012-13

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

0

INTERNATIONAL UNITS

1,300

35,000,000 1,350

1,250

1,200

1,150

1,100

1,050

0

IUs PER ‘000 POPULATION

Recombinant Factor IX LHS Plasma Derived Factor IX LHS IUs per ‘000 population RHS

2013-14 2014-15 2015-16 2016-17

FIGURE 2.7 Issues of Factor IX products 2012-13 to 2016-17 per ’000 population

The 2016-17 level of demand for Recombinant Factor VIIa decreased by 34.4 per cent and 45.2 per cent for FEIBA compared to 2015-16. Demand for Recombinant Factor VIIa and FEIBA can change significantly from year to year as a result of the variable needs of a small number of patients.

These products have also been variable due to ongoing clinical trials in the clotting factor space.

30,000

25,000

20,000

15,000

10,000

5,000

0

MICROGRAMS

2012-13

1.2

1.0

0.8

0.6

0.4

0.2

0

PER ‘000 POPULATION

2013-14 2014-15 2015-16 2016-17

Recombinant Factor VIIa LHS Micrograms per ‘000 population RHS

FIGURE 2.8 Issues of Factor VIIa products 2012-13 to 2016-17 per ’000 population

NBA ANNUAL REPORT / 2016-17 36

3,000,000

4,000,000

5,000,000

2,000,000

1,000,000

0 0

50

100

150

200

250

UNITS

PER ’000 POPULATION

2012-13 2013-14

2014-15

2015-16 2016-17

FEIBA Issued Units LHS IUs per ‘000 population RHS

FIGURE 2.9 Issues of FEIBA, 2012-13 to 2016-17 per ’000 population

PART 2 ANNUAL PERFORMANCE REPORTING 37

Issues of immunoglobulin: Ig and Normal Immunoglobulin (NIg)

As shown below demand for Ig continues to grow at a consistent annual rate of more than 10 per cent.

2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

10.9% 10.7% 11.0% 10.2% 12.4% 11.2%

In 2016-17, a total of 5.54 million grams of Ig was issued, representing a cost of $532.3 million nationally (including the cost of plasma collections). Of this amount, 56 per cent was Ig produced in Australia and 44 per cent was imported. Figure 2.10 highlights that the relative proportion of imported Ig compared to domestic Ig is growing at a rate of approximately five per cent per year over the last five years. This reflects the shortfall between the annual growth of domestic demand (approximately 11 per cent) and the annual growth of domestic plasma collection used to manufacture Ig (approximately 5 per cent).

The NBA produced an annual report of Ig usage in 2015-16, to document trends in Ig use and provide insights into the drivers of use at the micro level.

The Report on the Issue and Use of IVIg 2015-16 can be found on the NBA website at http://www.blood.gov.au/data-analysis-reporting.

Domestic Ig LHS Imported Ig LHS Grams per ‘000 population RHS

5,000,000

4,000,000

4,000,000

2,000,000

1,000,000

0

6,000,000 250

200

150

100

50

0

GRAMS

PER ‘000 POPULATION

2012-13 2013-14 2014-15 2015-16 2016-17

FIGURE 2.10 Issues of Ig products, 2012-13 to 2016-17 per ’000 population

NBA ANNUAL REPORT / 2016-17 38

Contract Management Maintaining security of supply requires the NBA to manage contracts with suppliers of blood and blood products. Contracts are developed in accordance with the Commonwealth Procurement Rules, and managed in accordance with Best Practice Guidance for contract management, including the guideline from the Australian National Audit Office (ANAO) on Developing and Managing Contracts.

In 2016-17, the NBA managed 14 blood and blood product supply contracts and arrangements.

The contracts managed by the NBA included:

• fresh blood product procurement - Australia’s fresh blood component requirements through the Deed of Agreement with the Australian Red Cross Society

• plasma and recombinant product procurement - Australia’s plasma product and recombinant product requirements through:

• the CSL Australian Fractionation Agreement (CAFA)

• contracts for the provision of imported IVIg, imported recombinant factors VIIa, VIII, IX, and XIII, and other imported plasma and recombinant products

• red cell diagnostic reagent products.

Deed of Agreement with the Australian Red Cross Society The Deed of Agreement with the Australian Red Cross Society for the supply of fresh blood products by the Blood Service is one of the most important contracts managed by the NBA. The Blood Service is the sole supplier of fresh blood products. The provision of fresh blood products under the Deed is an essential clinical service that saves lives every day. The NBA has an ongoing program with the Blood Service to improve contract performance and accountability under the Deed. The NBA implemented a new nine year Deed of Agreement with the Australian Red Cross Society on 1 July 2016 and included a three year funding and service agreement.

Funding provided to the Blood Service is based on an OBFM arrangement. This was $582.4 million in 2016-17, a decrease of $6 million over the $588.4 million provided in 2015-16.

Performance The performance of the Blood Service is a key element in meeting blood sector objectives. Governments expect the Blood Service to deliver effective services at optimum value for money. Governments outline their expectations of the Blood Service in relation to performance through the Deed of Agreement and the Blood Service Statement of Expectations. Blood Service performance against selected indicators is outlined in Table 2.3.

PART 2 ANNUAL PERFORMANCE REPORTING 39

TABLE 2.3 Blood Service: selected key performance indicators, 2016-17

Domain Indicator 2015-16

result*

2016-17 Blood Service target

2016-17 result*

Donor management First time

donors

Whole Blood 94,220 100,000 95,970

Apheresis Plasma

46,619 52,000 45,142

Supply chain management Number of days within inventory bands (note: bands set by the Blood Service)

339 N/A 357

Red cell yield (proportion of collections covered to supply) 91.6% 91.5% 91.3%

Age of red cells at issue (days)

6.85 8.0 6.94

Order fulfilment red cells 98.0% N/A 98.4%

Quality and level of service

Health provider satisfaction with Blood Service (mean score out of 10)

8.8 8.9 9.1

Finance Main operating program

financial result

$47.4 million surplus

>0 $27.3

million surplus

* As measured by the Blood Service.

Implementing improvements to current arrangements

The NBA implemented a new Deed of Agreement with the Blood Service providing the legal framework for nine years which commenced on 1 July 2016, including the following:

• a funding and service agreement that includes the third cycle of the Output Based Funding Model (OBFM) for 2016-19

• the National Service Requirements and Standards that set out the Blood Service’s relationships with health providers and the NBA. This includes business rules and standards for ordering, delivery, and receipt of products

NBA and Blood Service data and ICT systems security have been rigorously reviewed and upgraded in response to the Blood Service’s potential data breach incident in 2016. The Blood Service has undertaken to action recommendations arising from various reviews of the incident, which the NBA will monitor in the coming year.

New technologies and processes will be trialled by the Blood Service with the aims of improving the efficiency of plasma collection and reducing costs, through the establishment of two pilot plasma only collection centres in Townsville and Canberra. The Townsville centre is due to open in September 2017, and the Canberra facility is expected to open in March 2018.

NBA ANNUAL REPORT / 2016-17 40

Blood Service research and development Through a grant specified in the Deed of Agreement, the Blood Service received grant funding of approximately $9.1 million for its research and development program. The Blood Service and the NBA negotiated a new Research and Development (R&D) Framework under the new Deed of Agreement arrangements on 1 July 2016. In 2016-17, the Blood Service had five research strategic themes:

• donor behaviour • donor health and wellbeing • product development and storage • product safety

• product usage.

R&D business outcomes for the Blood Service were on track with 100 per cent of research projects completed in 2016-17 being translated into changed business practices or learnings.

This year, R&D at the Blood Service was focussed on understanding what motivates current and future donors, the safety and quality of blood components, development of sensitive, specific and cost-effective testing capabilities, enhancement of knowledge of transfusible blood components and their interactions with patients, and improvement of practice. A strong emphasis is placed on translational research through close interaction between R&D and operational arms of the business through all stages of a research project’s life cycle.

PART 2 ANNUAL PERFORMANCE REPORTING 41

CSL Australian Fractionation Agreement (CAFA) Most plasma derived products used in Australia are manufactured by CSL Behring (Australia) Pty Ltd under the CAFA from plasma collected by the Blood Service. CSL Behring (Australia) Pty Ltd is the sole manufacturer of plasma derived blood products in Australia and the NBA is responsible for negotiating and managing the CAFA.

In 2016-17, 637 tonnes of Australian plasma was pooled for fractionation under the CAFA, and expenditure on CAFA products totalled $269.6 million.

Performance The 2016-17 performance by CSL Behring (Australia) Pty Ltd against the CSL Australian Fractionation Agreement (CAFA) Key Performance Indicators (KPIs) is shown in Table 2.4. This table reports actual performance. Sufficient supply of all products was maintained at all times. The performance of CSL Behring (Australia) Pty Ltd was within defined tolerances for each of the KPIs where known issues were beyond the control of CSL Behring (Australia) Pty Ltd, including the dynamics of supply, demand and production for some products, which affected CSL Behring (Australia) Pty Ltd’s ability to meet KPI standards.

TABLE 2.4 CSL Behring (Australia) Pty Ltd’s performance under the CAFA, 2016-17

Description of performance measure Results 2016-17 Q1 Q2 Q3 Q4 Annual

KPI1 Plasma

stewardship

Achieved Achieved Achieved Achieved Achieved

KPI2 Production yield 4.884 g/kg 4.921 g/kg 4.724 g/kg 4.566 g/kg 4.774 g/kg

KPI3 Management of required inventory levels

Minimum starting plasma inventory Not active in 2016-17

Products in inventory

100.00% 98.85% 100.00% 100.00% 99.71%

Products in national reserve

100.00% 100.00% 100.00% 100.00% 100.00%

KPI4 Fulfilment of orders

Orders by distributor (Blood Service)

100.00% 99.83% 100.00% 98.27% 99.52%

Orders by non-distributor

97.96% 100.00% 100.00% 100.00% 99.49%

KPI5 Shelf life of

national reserve products

97.92% 100.00% 91.67% 100.00% 97.40%

Note: Values of less than 100 per cent but 90 per cent or more are considered to be achieved

NBA ANNUAL REPORT / 2016-17 42

Imported Ig Ig is imported to meet a shortfall in domestic Ig production against clinical demand in Australia. In addition to supply under the national blood arrangements, the NBA also supports the purchasing of small amounts of imported Ig using jurisdictional direct orders.

Two contracts are in place for supply of imported Ig under the national blood arrangements. The contracts commenced from September 2015 and expire on 31 December 2018. The suppliers are CSL Behring (Australia) Pty Ltd and Grifols Australia. In 2016-17, the NBA expended $110.8 million for both contracts.

Performance The 2016-17 performance of all suppliers against the contractual KPIs is shown in Table 2.5. Sufficient supply of products was maintained at all times in accordance with contractual requirements and was not affected by transient or administrative KPI deviations.

TABLE 2.5 Imported IVIg: Key performance indicators, by supplier, 2016-17

KPI Performance CSL Behring (Australia)

Pty Ltd

Grifols Australia Pty Ltd

KPI1 In-country reserve Achieved Achieved*

KPI2 Shelf life on

products delivered

Achieved* Not achieved

KPI3 Delivery performance Achieved* Achieved*

KPI4 Reporting accuracy and timeliness Achieved Achieved*

*In these instances, the performance of the relevant supplier departed from the contracted requirement at some periods during the year and was managed by the NBA.

PART 2 ANNUAL PERFORMANCE REPORTING 43

Imported plasma derived and recombinant blood products The NBA has contracts with suppliers for the importation of selected plasma derived and recombinant blood products to augment domestic supply where these products are not produced in Australia or domestic production cannot meet demand.

In 2016-17, the NBA managed the supply contracts for imported plasma and recombinant products with the following four companies:

• Baxalta Australia Pty Ltd

• CSL Behring (Australia) Pty Ltd

• Novo Nordisk Pharmaceuticals Pty Ltd

• Pfizer Australia Pty Limited.

Procurement processes and contract negotiations were completed during 2016-17 for contracts for the supply of Protein C, Activated Prothrombin Complex Concentrate, Factor XIII, Anti-Rh (D) Ig, Fibrinogen Concentrate, C1 Esterase Inhibitor Concentrate and Factor XI Concentrate.

Expenditure on the above contracts in 2016-17 amounted to $119.5 million.

NBA ANNUAL REPORT / 2016-17 44

Performance The 2016-17 performance of suppliers of imported plasma and recombinant blood products for each performance measure is shown in Table 2.6. All suppliers satisfactorily met required performance levels.

TABLE 2.6 Imported plasma and recombinant blood products: key performance indicators, by supplier, 2016-17

KPI Performance measure Baxalta Australia

Pty Ltd (FEIBA/ CEPROTIN)

Baxalta Australia Pty Ltd (ADVATE/ RIXUBIS)

CSL Behring (Australia) Pty Ltd (RHOPHYLAC, RiaSTAP, FIBROGAMMIN, BERINERT)

CSL Behring (Australia) Pty Ltd (Factor XI Concentrate)

Novo Nordisk Pharma-ceuticals Pty Ltd (NovoSeven)

Pfizer Australia Pty Ltd (XYNTHA, BENEFIX)

KPI1 In-country reserve Achieved Achieved Achieved Achieved Achieved Achieved

KPI2 Shelf life on products delivered

Achieved Achieved* Achieved Achieved Achieved* Achieved

KPI3 Delivery performance Achieved* Achieved* Achieved* Achieved Achieved Achieved*

KPI4 Reporting accuracy and timeliness

Achieved Achieved* Achieved* Achieved Achieved* Achieved*

*In these instances, the performance of the relevant supplier departed from the contracted requirement at some period during the year and was managed by the NBA.

Red cell diagnostic reagent products Red cell diagnostic reagents are used for testing to establish the blood group of human red cells, detect red cell antibodies and to control, standardise and validate routine haematology tests.

The NBA has established a standing offer arrangement with the following four suppliers for the period 1 July 2016 to 30 June 2019:

• Bio-RAD Laboratories Pty Ltd

• Grifols Australia

• Ortho-Clinical Diagnostics (Johnson & Johnson Medical Pty Ltd)

• Seqirus Pty Ltd.

The standing offer lists more than 100 red cell diagnostic products, which are used in laboratory tests known as blood typing and cross matching. These tests ensure that when a person needs a blood transfusion, they receive blood that is compatible with their own.

Expenditure on diagnostic reagent supply is capped at $4.85 million per year. The NBA administers the cap for all jurisdictions and suppliers.

PART 2 ANNUAL PERFORMANCE REPORTING 45

OBJECTIVE 2. IMPROVE RISK MANAGEMENT AND BLOOD SECTOR PERFORMANCE

In 2016-17, the NBA achieved a range of objectives to improve blood sector performance and risk management, particularly in the areas of Ig governance, evaluation of new products, ICT developments, data availability and analysis and risk and knowledge management.

Ig Governance The NBA Ig Governance program was very active during 2016-17. The activities within the program continue to improve the governance and management of publicly funded Ig to ensure product use and management:

• reflects appropriate clinical practice

• represents efficient, effective and ethical expenditure of government funds

• is consistent with relevant national safety and quality standards for health care.

During the 2016-17 period, the program focussed on the four key activities listed below:

1. Launch of BloodSTAR (Blood System for Tracking Authorisations and Reviews)

2. Publication of the National Policy: Access to Government Funded Immunoglobulin Products in Australia 2nd edition (National Policy)

3. Publication of Module 2 of Managing Blood and Blood Product Inventory: Guidelines for Australian Health Providers - Managing Intravenous and Subcutaneous Immunoglobulin Inventory (Guidelines for Managing Blood and Blood Product Inventory)

4. Review of the Criteria for the clinical use of intravenous immunoglobulin in Australia (the Criteria).

To support this work, three meetings of the National Immunoglobulin Governance Advisory Committee (NIGAC) were convened.

NBA ANNUAL REPORT / 2016-17 46

Launch of BloodSTAR During 2016-17, the NBA successfully launched BloodSTAR in all states except New South Wales. This included the seamless transition of 6,868 existing patients to the new system ensuring continuity in health care.

The NBA developed the new online system on behalf of all Australian Governments to support health providers in managing their Ig Governance obligations as set out in the National Policy. System capabilities support prescribers, nurses/midwives, dispensers and authorisers to deliver high quality care to patients across Australia. The system standardises and manages access to the supply of immunoglobulin products by enabling authorisation requests to be submitted electronically and work-flowed to an authoriser for assessment and approval. Authorisation requests can only be approved for funding by all governments through the national blood arrangements, for conditions identified in the Criteria. BloodSTAR will also enable collection of improved national data and enhance the ability to further develop the Criteria and provide an improved evidence base for practice improvement and research.

Publication of the second edition of the National Policy The second edition of the National Policy was released in July 2016 to coincide with the launch of BloodSTAR. The document describes the authorisation arrangements for access to government-funded immunoglobulin products. This includes an explanation of roles, responsibilities, authority and accountability of those involved in requesting authorisation, authorising, supplying, managing and using immunoglobulin products throughout the supply chain within health services. The second edition of the National Policy incorporates business processes associated with BloodSTAR. It replaces the first edition of the Ig Governance National Policy November (released in 2014) in jurisdictions using BloodSTAR. The document underwent public consultation prior to release.

Publication of Module 2 of the Guidelines for Managing Blood and Blood Product Inventory The Guidelines for Managing Blood and Blood Product Inventory provide better practice processes that can be used by health providers to ensure risks associated with receipt, storage, collection and transport of blood and blood products are mitigated. It also identifies improvement opportunities for implementation.

In 2016-17, the NBA developed Module 2 to supplement the overarching inventory management principles and support the implementation of BloodSTAR. The module aims to assist health providers in meeting the requirements of the National Policy by:

• describing how to establish and manage stock levels

• outlining the Ig product ordering models

• identifying different methods to determine ordering requirements/triggers

• providing recommendations for good practice.

The document underwent public consultation prior to release.

PART 2 ANNUAL PERFORMANCE REPORTING 47

Blood System for Tracking Authorisations and Reviews (BloodSTAR) - Rollout BloodSTAR was developed by the National Blood Authority (NBA) and first implemented in July 2016 as one of the key measures under the National Immunoglobulin (Ig) Governance Program. BloodSTAR was developed to improve the governance and management of government funded Ig to ensure that product use and management reflects appropriate clinical practice and represents efficient, effective and ethical expenditure of government funds.

BloodSTAR was rolled out across Australia via a staged state by state process. The NBA worked closely with each jurisdiction and relevant health sector stakeholders to map out key business process changes and to communicate these widely. The NBA and the Australian Red Cross Blood Service managed the transition from the predominantly paper based processes. Education and training on the system was provided via a series of face to face and online training sessions. Consent to record personal and sensitive information in BloodSTAR was obtained from patients who were authorised to receive Ig product beyond their state ‘go live’ date. Information was gathered on relationships between treating, administering and dispensing facilities so they could be matched and entered correctly to ensure continuity of care and a smooth transition.

BloodSTAR is now live in all states and territories except for NSW and manages all patients who are authorised under the Criteria for the Clinical Use of Intravenous Immunoglobulin (IVIg) in Australia to receive government funded Ig. There are currently over 7,700 patients with active authorisations and 6,800 users accessing the system as either, authorisers, medical officers, nurses, admin support officers or facility administrators.

The key benefits of BloodSTAR include ensuring consistency of processes and application of the Criteria, and transparency of information enabling support for patients across multiple sites. BloodSTAR will facilitate all future improvements and further development of the Criteria to ensure government funded Ig is directed to where there is evidence of greatest benefit.

Jurisdiction Northern Territory 14 July 2016

South Australia 1 August 2016

Queensland 22 August 2016

Tasmania 14 September 2016

Victoria 26 September 2016

Australian Capital Territory 24 October 2016

Western Australia 5 December 2016

New South Wales To be confirmed

Start Date Activity Responsible

1. BloodSTAR facility registration is still open (hospitals, medical clinics, private rooms) Register now to avoid transition delays

2. Confirm patient details to enable consented patients who are authorised for funded Ig to be entered into BloodSTAR

3. User Acceptance Testing Email support@blood.gov.au to register 4. BloodSTAR user registration opens Medical Officers will need to register ASAP after

April 2016 to avoid delays to patient transition

May-16 5. Publish user support materials NBA

May-16 6. System training delivery commences Blood Service and NBA

What is happening next?

Mar-16

Any interested users

Apr-16

Medical Officers Nurses

Scheduled Go-live Date

What is happening now?

In progress

Senior facility staff

In progress Blood Service

BloodSTAR roll out

NBA ANNUAL REPORT / 2016-17 48

Review of the Criteria The Criteria assists clinicians and transfusion medicine professionals to identify the conditions and circumstances for which immunoglobulin products are available for use under the national blood arrangements. The review of the Criteria continued in 2016-17. Work completed as part of this activity supports the Criteria to more clearly articulate and standardise the diagnostic, qualifying and review criteria, initial and continuing authorisation periods, dosing controls and ensure the submission of supporting evidence for access to funded Ig.

In 2016-17, Specialist Working Groups for Neurology, Immunology, Haematology and Transplantation Medicine assisted further progression of the review for medical conditions in chapters 7 (Exceptional therapeutic use) and 8 (Not supported) of the Criteria with a view to implementation in BloodSTAR. Public consultation was also undertaken to seek community wide feedback on the proposed revisions to the medical conditions included in chapters 7 and 8.

PART 2 ANNUAL PERFORMANCE REPORTING 49

Adaptation of the Criteria for BloodSTAR BloodSTAR (Blood System for Tracking Authorisations and Reviews) is the new online system developed by the National Blood Authority on behalf of all Australian Governments to support health providers in managing their Ig Governance obligations as set out in the National Policy: Access to Government Funded Immunoglobulin Products in Australia (National Policy). The system standardises and manages access to the supply of immunoglobulin products for the treatment of conditions identified in the Criteria for the clinical use of intravenous immunoglobulin in Australia (the Criteria), funded by all governments through the national blood arrangements.

With the move to this new online system, the Criteria will no longer be published in printed form. The Criteria that has been uploaded into BloodSTAR has been based on an adaptation of the Second Edition (or Version 2) of the hard copy publication and the previous paper authorisation request forms. The adaptation has been required because there were certain fields in the system that could not be populated directly from Version 2 of the Criteria either because they were absent or ambiguous, or only referred to indirectly.

This is particularly the case for review criteria. In many instances, to allow prescribers to conduct a review within BloodSTAR, there must be an initial qualifying value, which is entered at the initial authorisation request. Where review or other criteria were inferred in Version 2 and the detail was available from Version 3 the information from Version 3, has been used to populate the required fields in BloodSTAR.

The evidence items fields are available in the system for the following reasons:

S To capture data or values (such as platelet count or Ig level) that are currently collected on the paper request forms

S To clarify qualifying criteria where the published version is silent or ambiguous (such as words like thrombocytopenia or recurrent)

S To assist prescribers with baseline values they may like to compare at review

S To assist in data analysis to inform future criteria access arrangements or development of the system.

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IMMUNOGLOBULIN GOVERNANCE

> SECOND EDITION > JULY 2016

National Policy: Access to Government-Funded Immunoglobulin Products in Australia

STAR

NBA ANNUAL REPORT / 2016-17 50

Evaluation of new products The working group established by the Jurisdictional Blood Committee (JBC), including NBA and jurisdictional representatives, progressed work on the requirements and processes for evaluations to be undertaken under Schedule 4 of the National Blood Agreement.

The NBA undertook an evaluation of a Schedule 4 proposal for the inclusion of C1 Esterase Inhibitor Concentrate as a new product under the national blood arrangements. The Medical Services Advisory Committee (MSAC) provided advice on the proposal on 30 July 2015.

In late December 2015 the JBC agreed to recommend the inclusion of C1 Esterase Inhibitor Concentrate in the National Products and Services List and the 2016-17 NSP&B for Type I or II hereditary angioedema for the following indications:

• treatment of acute attacks

• pre-procedural (short term) prophylaxis for high risk procedures such as dental work, head or neck surgery, or surgery requiring intubation

• routine (long term) prophylaxis for patients who experience the equivalent of eight or more acute attacks per month.

The NBA worked with the Australasian Society of Clinical Immunology and Allergy (ASCIA) to develop guidance and governance arrangements for use of C1 Esterase Inhibitor Concentrate for the clinical circumstances which reflect JBC’s approval.

The NSP&B was subsequently approved by health ministers in April 2016. Supply of C1 Esterase Inhibitor Concentrate commenced in October 2016.

Data developments In 2016-17, the NBA continued to build its data capture and analysis capabilities across all aspects of the supply chain. This area of activity is a key strategy to improve the overall efficiency and sustainability of the sector by providing a measurement for improvement.

A significant amount of data and information exists within the blood sector, however, the extent to which this data is currently available to the parties that need it, the quality of the data, and the capacity of the systems that hold it, varies widely. During 2016-17, the NBA progressed the following activities identified in the National Blood Sector Data and Information Strategy and Scorecard 2013-2016:

• continued to develop the list of system reports to be provided to stakeholders and developed specifications to assist in their development

• refined and implemented monthly and quarterly issue reports to be provided to stakeholders

• discard data

• collected, analysed and distributed discard data from the BloodNet Fate Module to support the establishment of revised targets for discard rates in 2018-19 under the National Blood and Blood Product Wastage Reduction Strategy 2013-2017

• specified further BloodNet discard reports on red blood cell ABO groups and reporting by public and private health providers

PART 2 ANNUAL PERFORMANCE REPORTING 51

• Haemovigilance

• developed the National Haemovigilance Report 2017 based on data for 2014-15 collected by states and territories. Refined and implemented the work plan to support implementation of the Strategic Framework for the National Haemovigilance Program approved in 2014-15

• continued to develop revised haemovigilance tools and templates to support haemovigilance programs in Queensland

• published the standards and minimum data sets for haemovigilance reporting for implementation in 2017-18

• Australian Bleeding Disorders Registry (ABDR)

• published the ABDR Annual Report for 2015-16

• continued to develop the set of data standards as part of the data integrity process for the ABDR for review by AHCDO Executive and the Data Managers

• provided to AHCDO the 2015-16 ABDR Benchmarking Report

• the NBA signed Information Framework Agreements with SA in 2014-15, with NT, TAS and WA in 2015-16 and NSW in 2016-17. These agreements are required as part of the National Blood Sector Data and Information Governance Framework

• published the Ig Annual Report for 2015-16

• responded to 71 data requests from internal and external stakeholders.

Risk management Focussing on risk management remained a high priority in 2016-17 to ensure a safe and secure blood supply within Australia. As part of that focus, the NBA commenced updating several programs during 2016-17 including:

• review and update of the NBA Risk Management Policy and Framework was undertaken and is expected to be endorsed by the Chief Executive in August 2017

• revision and testing of supply risk mitigation arrangements for imported products

• review and update of the NBA business contingency arrangements.

National Blood Supply Contingency Plan (NBSCP) The NBSCP remains a body of work that will go to the Jurisdictional Blood Committee for endorsement in December 2017.

Recent changes have been made to the suite of documents including:

• expanded information covering roles and responsibilities

• communication channels in times of activation of the plan

• escalation and management responsibilities during an activation of the plan.

NBA ANNUAL REPORT / 2016-17 52

Business Contingency Plan (BCP) The NBA commenced implementing the recommendations from an internal audit of the NBA Business Contingency Plan (BCP) during 2016-17. The BCP was seen as a detailed and robust approach to contingency planning. However, given the NBA has introduced several new programs recently, it was recommended a business impact analysis be carried out to review the suite of core business processes presently defined in the plan.

Review of Risk Management in the Blood Sector The NBA continued to progress a range of recommendations resulting from an independent comprehensive Review of Risk Management in the Blood Sector, previously known as the National Managed Fund (NMF) Action Plan Review. This included approval of strategic level recommendations by all health ministers through the COAG Health Council. The Review concluded that the overall level of risk in the blood sector has reduced over the last decade due to a range of factors, including supply security improvements undertaken by the NBA. The negotiation between the NBA and the Australian Red Cross Society for the new Deed of Agreement implemented on 1 July 2016 addressed a number of these recommendations, together with a range of operational improvements for implementation in consultation with the Blood Service.

Supply Risk Mitigation for Plasma Derived and Recombinant Products In 2016-17, the NBA conducted a specific risk simulation exercise to test the existing risk mitigation strategies in place under the National Blood Supply Contingency Plan (NBSCP). The risk exercise was conducted with an imported products supplier to simulate an interruption to product supply, testing the effectiveness of responses in a controlled environment. Lessons learned from the simulation exercise were used to update and improve the NBA’s approach to risk management and assist in preparation for future activations of the NBSCP.

PART 2 ANNUAL PERFORMANCE REPORTING 53

Information Communication Technology (ICT) The NBA ICT teams continue to provide technology solutions and high quality support for NBA staff and deliver approved JBC strategies and projects. These projects are a key enabler of both data collection/analysis and business process reform across the sector. This is mainly incorporated under the Crimson Portfolio. The Crimson Portfolio incorporates the JBC approved Blood Sector Systems 2016 to 2019 project as well as BloodNet laboratory information system (LIS) integration stage 2 program and will deliver the following high level outcomes:

• policy compliance

• infrastructure updates

• platform enhancements

• reporting capability

• ABDR and MyABDR enhancements

• BloodNet enhancements

• BloodSTAR enhancements

• BloodNet-LIS interface.

BloodNet-LIS interface - Pathology North’s (NSW) LIS eBlood went live in October 2016. It is the first ever BloodNet-LIS developed and certified according to the newest specifications. Pathology Queensland (QLD) successfully implemented the first ever BloodNet-AUSLAB LIS interface going live in June 2017. All BloodNet-LIS interfaces currently in place are responsible for processing 35 per cent of total national issues of fresh blood products.

Australian Bleeding Disorders Registry (ABDR) The ABDR and associated patient portal (MyABDR) is a clinical tool used on a daily basis by clinicians in all Australian haemophilia treatment centres to assist in the management and treatment of people with bleeding disorders. The NBA delivered a number of updates and improvements in 2016-17 to enhance the functionality and user experience with both ABDR and MyABDR. These changes included:

• system wide use of time zone processing which was particularly important for patients entering in MyABDR data

• updates to treatment plans

• additional requested validation messages and instructions as requested by users

• assorted user-requested functionality updates.

NBA ANNUAL REPORT / 2016-17 54

ICT Crimson Crimson is a Jurisdictional Blood Committee approved project spanning over three years from 2016 to 2019. The aim of the project is to enhance Blood Sector Systems to continue to provide clinical, data, accountability and supply chain resilience and efficiency benefits to the NBA and across the blood sector.

The project also aims to ensure NBA systems are compliant with government policies and standards, including the Digital Transformation Agencies’ Digital Service Standard. Through this, solutions are designed for users and feedback is sought regularly, improving the engagement of stakeholders and usability of systems. This ensures greater uptake and usage and improves accuracy and completeness of data collection for the benefit of all jurisdictions and the NBA.

The Crimson project will develop and implement a range of improvements, including:

S streamlining of all user interfaces

S enhanced integration of modules and whole systems

S introduction of real time notifications

S improvements or development of reports

S ability to support all new barcoding formats

S enhancements to platforms and infrastructure.

Crimson incorporates the BloodNet 5 project - the redevelopment of the BloodNet system, and a vast array of improvements to the Australian Bleeding Disorders Registry (ABDR), MyABDR and BloodSTAR.

BloodNet 5 prototype image

BloodNet 5 prototype image

PART 2 ANNUAL PERFORMANCE REPORTING 55

BloodNet The BloodNet 5 redevelopment project commenced in late August 2016 and included a number of NBA ICT staff visiting laboratories across the country to gain exposure to real users and environments. In March 2017, BloodNet 5 passed the government’s Digital Service Standard alpha assessment highlighting the successful approach to ensuring the new system is designed around end user needs. BloodNet 5 is currently scheduled for implementation in early 2018 and is progressing well.

The BloodNet Authorisation module was developed in 2016-17 enabling an interface between BloodNet and BloodSTAR to ensure that medical officers and nurses using BloodSTAR have consistent, up-to-date data from dispenses in BloodNet. Face to face and online training for this module were provided to each jurisdiction in conjunction with the national implementation of the BloodSTAR system.

The BloodNet User Reference Group met regularly throughout the year and provided feedback on how the authorisation module was working within laboratories after implementation. The NBA has responded to feedback and provided further updates to ensure the system is usable and suitable for all users.

In June 2017, QLD Health Auslab LIS interface with BloodNet was successfully established.

The BloodNet User Reference Group met regularly throughout the year to provide feedback to the NBA.

Image: BloodNet User Reference Group

NBA ANNUAL REPORT / 2016-17 56

BloodNet Redevelopment BloodNet is Australia’s online blood ordering and inventory management system. BloodNet provides the ability for Australian hospitals and laboratories to order blood and blood products and is supported by a 24-hour service to ensure that essential, lifesaving products get to where they are needed. Over one million orders have been placed in BloodNet since late 2010 and approximately 28,000 litres of blood are ordered and tracked each month.

BloodNet transformation In 2009 the Queensland Department of Health developed an online system for ordering and tracking blood products called ORBS (Ordering, Receipting Blood System). This system was so successful that it was proposed for the NBA to develop a national system. A bespoke application called BloodNet was developed by the NBA in 2010 and has continued to be enhanced since this time.

In 2016, the NBA recognised the significant opportunity of redeveloping BloodNet to achieve compliance with the government’s Digital Service Standard and received the Jurisdictional Blood Committee’s authorisation to commission the BloodNet 5 project. The project will deliver a new BloodNet designed around users to make ordering blood products easier and faster and to build a more resilient and feature rich system.

The NBA visited 138 people across 39 different locations around Australia in order to gather feedback from users to ensure the new system meets their needs. The BloodNet User Reference Group was established to ensure feedback is discussed and progress on the system can be demonstrated at regular times through the project.

The redevelopment will come to fruition with the uptake by all health providers.

PART 2 ANNUAL PERFORMANCE REPORTING 57

BloodNet Milestone at Fiona Stanley Hospital, Western Australia On 11 November 2016 PathWest Fiona Stanley Hospital Laboratory placed the one millionth order of blood product in the BloodNet system. The National Blood Authority and the Western Australian Department of Health visited the Fiona Stanley Hospital to celebrate this significant event. A commemorative award was presented by the NBA Chief Executive, Mr John Cahill to the PathWest Fiona Stanley Hospital Laboratory Senior Scientist, Ms Annette Le-Viellez.

The event in Perth highlighted the significant and critical role of BloodNet across the blood sector since it was rolled out across Western Australia.

NBA ANNUAL REPORT / 2016-17 58

2016-17 Sector monitoring In 2016-17, the NBA continued its horizon scanning of international experience that may influence the management of blood and blood products in Australia. This monitoring activity informs the provision of current and proactive analysis to governments to enable the NBA to fulfil its functions under the National Blood Agreement.

Our focus in 2016-17 was:

• new product developments and applications

• global regulatory and blood practice trends

• scientific and clinical research with implications for future supply or demand in the sector

• business events that may have an impact on global supply, demand and pricing, such as changes in company structure, financial outlook, production capacity, organisation, ownership, and marketing and contractual arrangements

• diseases or pandemics that may have an impact on supply or risks to the safety of products

• developments in testing methods, vaccines and disease control strategies that could potentially mitigate risks to supply

• any other emerging risks that could potentially put financial or other pressures of any kind on the Australian sector.

The NBA regularly posts to its website a selection of items from this horizon scanning process, illustrating the wide range of factors which may influence industry operations and patient outcomes. This information is available from www.blood.gov.au/monitoring-international-trends-blood-sector.

During 2016-17, key developments included:

• increased availability of longer acting recombinant clotting factors for patient convenience

• further progress on an investigational humanised bispecific monoclonal antibody engineered to mimic the function of factor VIII, and simultaneously bind factors IXa and X

• the spin out of Biogen’s global haemophilia business as a new public company, Bioverativ

• research of variable success on gene therapies directed at disorders such as haemophilia, sickle-cell disease and beta thalassemia, and continued interest in the treatment of haemophilia with RNAi therapeutics

• progress in developing treatment to reduce sickle-cell related pain crises

• further clinical trials of plasma-derived alpha-1 antitrypsin in a variety of settings

• introduction of new treatments for hereditary angioedema

• new haemostasis products

• interest in a variety of ways of storing/preserving blood and blood products

• further research on whether the age of red blood cells transfused affected clinical outcomes

• continuing endorsement of a restrictive transfusion policy, as the body of clinical experience grows in a range of surgical contexts

PART 2 ANNUAL PERFORMANCE REPORTING 59

• increased acceptance of the benefits of treating anaemia pre-operatively

• more emphasis on maintaining iron levels in blood donors

• further clinical experience of novel anticoagulants and reversing their effects when required

• further stem cell research relevant to the blood sector, both on producing transfusible product and on modifying the surgical contexts in which transfusion may be considered

• the development of an implant that resembles natural bone, with working marrow capable of producing blood

• further understanding of how long the Zika virus remains in the human body and can be transmitted to others

• continuing reports of cases of Middle East Respiratory Syndrome-Coronavirus (MERS-CoV), primarily in Saudi Arabia, with further confirmation that camels are a source of infection and hospital clusters are not uncommon

• continuing reports of human cases of avian influenza A (H7N9) by the Chinese mainland health authorities, and further confirmation that live poultry markets are a major source of human infection. While temporary poultry market closures reduced environmental levels of H7N9 and other avian flu viruses, contamination returned to previous levels when markets re-opened.

NBA ANNUAL REPORT / 2016-17 60

OBJECTIVE 3. PROMOTE THE SAFE AND EFFICIENT USE OF BLOOD AND BLOOD PRODUCTS

In 2016-17, the NBA continued its intensive program to promote the safe and efficient use of blood and blood products. This includes the delivery of a range of key reference material and accelerated supporting implementation activities in relation to reducing wastage and improving fresh blood use based on the NBA-developed Patient Management Guidelines (PBM Guidelines).

Reference Development In 2016-17, the NBA commenced a project to identify and implement a more sustainable methodology for reviewing and updating the PBM Guidelines. The NBA also commenced an update of the 2003 Guidelines on the Prophylactic Use of Rh D Immunoglobulin (Anti-D) in Obstetrics to ensure they continue to reflect current evidence and best clinical practice.

PART 2 ANNUAL PERFORMANCE REPORTING 61

National Patient Blood Management Implementation Strategy 2017-2021

NATIONAL PATIENT BLOOD MANAGEMENT IMPLEMENTATION STRATEGY 2017-2021

Better management of patients’ blood…

Better patient outcomes

Neonatal and Paediatrics

Patient Blood Management Guidelines: Module 6

Patient Blood Management Guidelines: Module 6 Neonatal and Paediatrics

PREOPERATIVE ANAEMIA IDENTIFICATION, ASSESSMENT AND MANAGEMENT JUNE 2014

Pg.3

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PREOPERATIVE ANAEMIA IDENTIFICATION, ASSESSMENT AND MANAGEMENT

CASE STUDY

FIT FOR SURGERY FIT FOR LIFE

You need iron to make haemoglobin. Haemoglobin carries oxygen from your lungs to your body.

WHY IS IRON IMPORTANT?

About 1 in 10 people in Australia have low iron levels also called iron deficiency

3 in 10 people having elective surgery have low iron or anaemia - this puts you at a much higher risk of transfusion.

IRON DEFICIENCY: THE FACTS

Dietary deficiency (iron, B12)

Gastrointestinal problems

CAUSES OF ANAEMIA

Blood loss Chronic disease

If left untreated low iron levels and anaemia can:

• delay your surgery.

• increase your chance of needing a blood transfusion.

• increase your chance of complications.

• slow down your recovery after surgery.

Having anaemia before you go in for surgery puts you at a higher risk of needing a blood transfusion.

Blood is a precious commodity and should not be used lightly.

A blood transfusion is an organ transplant and comes with inherent risks.

ACTION Your GP will assess your blood to see if you have low levels of iron or if you have anaemia. If they find you do you may need treatment.

There are other information leaflets available that will give you more information about what you need to do now that you are on the surgery waiting list. Ask your GP for the link to these resources.

RED BLOOD CELL CLINICAL AUDIT TOOL  

 

      Guidance for Australian Health Providers

October 2014  

The National Patient Blood Management Implementation Strategy 2017-2021 takes a patient-centred approach intended to optimise clinical outcomes and improve patient safety.

Since the launch of the PBM Guidelines and accompanying implementation strategy, Australia has seen a significant reduction in the use of red blood cells. This reduction in use would not have occurred without the concerted effort of jurisdictional programs, clinical PBM champions and a willingness by healthcare professionals to adopt a patient focus rather than a product focus and using blood and blood products more appropriately and safely. The NBA estimates there remains significant scope for consolidation of gains already made and further penetration of PBM in clinical practice.

The core element of the strategy is to collaboratively facilitate activities and development of materials at a national level that support implementation at a health service organisation level. The four main elements covered in the 2013-17 strategy have been updated to six and now include:

S Guidelines

S Tools and resources

S Education and training

S Promotion and communication

S Data

S Research and development

The PBM activities to be undertaken are categorised to reflect these new elements in line with the revised goals and objectives. The content has been reviewed to align with the revised National Safety and Quality Health Service Standards, Blood and Blood Products Standard. The strategy also includes further information on partnerships, reviewing and updating PBM initiatives currently being implemented, and evaluation processes.

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PBM Guidelines Over 140,000 hard copies of the PBM modules 1 to 6 have been issued. They have also been downloaded in over 60 countries. They provide evidence based guidance on optimisation of the patient’s own blood, non-transfusion strategies to minimise blood loss and bleeding and strategies to manage anaemia. In 2016-17, the NBA turned its attention to maintaining the currency of the PBM Guidelines and commenced a review of the current development process. The review aims to identify and implement a model that allows updated clinical guidance to be published and disseminated as the evidence base and clinical practice evolves.

National Anti-D Guidelines The NBA commenced a review of the 2003 Guidelines on the Prophylactic Use of Rh D Immunoglobulin (Anti-D) in Obstetrics in 2016-17 to ensure they continue to reflect current evidence and best clinical practice. A multi-disciplinary Expert Reference Group has been established to oversee the development of the new Guideline.

Implementation A core element of ensuring reference material influences the safe and efficient use of blood and blood products are activities that support their implementation. In 2016-17, the NBA continued its focus on activities to support implementation of measures to reduce wastage of blood and improve appropriate use through PBM as defined in the JBC approved National Blood and Blood Product Wastage Reduction Strategy 2013-2017 and the National Patient Blood Management Guidelines Implementation Strategy 2013-2017. The strategies address a significant proportion of requirements identified in the 2010 Australian health ministers’ Statement on national stewardship expectations for the supply of blood and blood products. Although the strategies differ in terms of specific outcomes, the strategies share key common elements including the development of:

• best practice tools

• promotional and communication activities

• supporting education and training

• data to support implementation of improvement.

PBM Guidelines publication covers

Neonatal and Paediatrics

Patient Blood Management Guidelines: Module 6

Patient Blood Management Guidelines: Module 6 Neonatal and Paediatrics

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Patient Blood Management Guidelines Review The NBA completed the suite of the National Health and Medical Research Council (NHMRC)-approved Patient Blood Management Guidelines in 2016, comprising Critical Bleeding/Massive Transfusion (2011), Perioperative (2012), Medical (2012), Critical Care (2013), Obstetrics and Maternity (2015) and Neonatal and Paediatrics (2016).

The Patient Blood Management Guidelines provide evidence-based clinical guidance on optimisation of the patients’ own blood, non-transfusion strategies to minimise blood loss and bleeding and strategies to manage anaemia.

Upon completion of the suite of the Patient Blood Management Guidelines, the NBA turned its attention to maintaining their currency and commenced a review and update process.

The review is considering a broader scope across the entire suite of modules rather than updating each module in isolation and aims to identify and implement a guideline model that allows updated clinical guidance to be published and disseminated as the evidence base and clinical practice evolves.

While the review is underway, the original modules remain available to guide practice. Copies of the Patient Blood Management Guidelines and their accompanying Quick Reference Guides can be downloaded or ordered free of charge at www.blood.gov.au/pbm-guidelines.

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Red blood cell wastage and supply chain efficiencies The National Blood Authority’s Wastage Reduction Strategy 2013-17 has been very effective in helping to reduce unnecessary wastage of blood and blood products through two streams of work:

1. supply chain efficiencies from the point of collection to the point of issue of blood and blood products to health providers from suppliers and distributors

2. improving health provider inventory management from the point of receipt of blood and blood products to the transfusion of these units to patients.

Various projects, resources and direct health provider engagement have contributed to significant reductions in issues and wastage rates for red blood cells:

S National Blood and Blood Product Wastage Reduction Strategy 2013-17

S the National Patient Blood Management Guidelines (6 modules)

S manufacturing cost included on blood component labels

S national blood symposia highlighting strategies required to reduce wastage

S promoting strategies at key conferences and collaborative meetings

S National Safety and Quality Health Care Service National Safety and Quality Health Service (NSQHS)

S Standard 7 - Blood and Blood Products

S Managing blood and blood product inventory

S The National Inventory Management Framework project (NIMF)

A variety of free resources and ‘Stop the Waste’ promotional products are available to help health providers promote the wastage strategy including the below promotional items.

Stop and Think… Stop the Waste!

Blood is a precious resource generously donated by volunteers. Millions of dollars’ worth are discarded unnecessarily each year.

For more information on blood and blood products visit www.blood.gov.au/stopthewaste to access the latest information.

Everyone can do their bit to reduce the waste:

• Red blood cells can only be stored in an AS3864 compliant monitored blood refrigerator

• Do NOT place red blood cells in a ward or pharmacy fridge

• Remember the 30 minute rule: start the transfusion or return to the laboratory within 30 minutes

Blood is a precious resource generously donated by volunteers. Millions of dollars’ worth are discarded unnecessarily each year.

For more information on blood and blood products visit www.blood.gov.au/stopthewaste to access the latest information.

Do NOT place fresh blood or blood products in a ward fridge

Red blood cells can only be stored in an AS3864 compliant monitored blood refrigerator

Do NOT refrigerate platelets - store at 20˚ to 24˚ C

Remember the red blood cell 30 minute rule: start the transfusion or return to the laboratory within 30 minutes

Blood is a precious resource - Stop the Waste!

Stop and Think… Stop the Waste!

Stop!

Think!

Stop!

Think!

Stop!

Blood is a precious resource

STOP THE WASTE! Blood is a precious resource STOP THE WASTE!

Blood or blood products MUST NOT be placed in this fridge

Remember the 30 minute rule: start the transfusion or return to the laboratory within 30 minutes

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Promotion and communication In 2016-17 the NBA continued its promotion and communication campaign to increase awareness of the need to improve clinical practice and inventory management in relation to blood products. This included representation and promotional and educational activities at a range of clinical and health sector conferences and events, including the following:

• 27th Annual Conference of the Australasian Society of Clinical Immunology and Allergy (ASCIA), September 2016

• Haematology Society of Australia and New Zealand, Australian & New Zealand Society of Blood Transfusion and the Australasian Society of Thrombosis and Haemostasis (HAA), 2016, November 2016

• Inaugural Patient Blood Management Conference RBWH, Royal Brisbane Women’s Hospital, February 2017

• Royal College of Pathologists - Pathology Update 2017, February 2017

• Transfusion Update Conference 2017, April 2017

• 3rd Intraoperative Management of Blood (IMOB) Australian and New Zealand College of Perfusionists (ANZCP), May 2017

• Australia & New Zealand College of Anaesthetists Annual Scientific Meeting (ANZCA), May 2017.

The NBA promotes improved inventory management and appropriate clinical use of blood and blood products at a range of relevant national forums.

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BloodMove Platelets Project significantly reduces platelet wastage for South Australia

Aim: The aim of the BloodMove Platelets project was to minimise platelet wastage due to expiry. The data confirms a significant reduction in South Australia when compared with the national wastage figure over the past four years.

Implementation: The BloodMove Platelets project was implemented in a staged manner following initial planning, preparation, consultation and education. Initial planning included auditing inventory levels, platelet usage and wastage patterns across all metropolitan public hospitals.

The BloodMove Platelets project aimed to minimise platelet wastage through a number of different strategies including:

S transfer of near expiry platelets to large metropolitan hospital laboratories

S establishing a common shared Day 5 Platelet Listing for use by all Adelaide metropolitan hospital and private laboratories (in preference to the use of available Day 3 or 4 platelets or by placing a BloodNet order)

S reducing platelet inventories deemed excessive.

Summary: The BloodMove Platelets project has demonstrated a reduction in platelet wastage. High platelet wastage rates that were previously seen as unavoidable are now deemed unacceptable in the current climate of healthcare cost containment.

The BloodMove Platelets project involves a collaborative platelet inventory concept that moves Day 4 platelet blood stocks from low usage sites to high usage sites and then sharing a common multi-site near expiry Day 5 platelet inventory. Additionally, minor inventory level changes and dispatch practices were implemented.

Transfusion service laboratories across the SA Pathology network, together with the large private pathology transfusion service laboratories, have significantly reduced platelet wastage to levels previously thought as unachievable. This reduction was sustained for 36 months and currently appears to have stabilised. The flow-on substantial cost savings to jurisdictional governments will enable funding to potentially be redirected to other important areas.

Importantly, BloodMove practices have reduced the risk of a valuable resource, that is freely provided by blood donors, being wasted.

These initiatives have shown that with good planning, collaboration and education, significant reduction in platelet component wastage due to expiry is attainable.

2013-14

Platelet Discard Rate 2013-14 to 2016-17 by per cent National compared to South Australia

National

South Australia 0

2

4

6

8

10

12

14

16

18

20

2014-15 2015-16 2016-17

Percentage %

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Education and Training

National Blood Sector Education and Training Strategy With the publication of the PBM Guidelines and the implementation of Standard 7 Blood and Blood Products, the demand for supportive education, training and information resources continues to rise.

In 2016-17, the NBA progressed the National Blood Sector Education and Training Strategy 2013-2016. The strategy outlines a plan to work with current education and training providers to address the growing demand for high quality, well-tailored education, training and health promotion materials to support the implementation of evidence-based practice and attainment of health service accreditation under the new standards.

BloodSafe eLearning Australia BloodSafe eLearning Australia (BEA) provides online education and training resources for health professionals in Australia. The program aims to improve knowledge of patient blood management and clinical transfusion practice in order to improve patient outcomes.

The first course, Clinical Transfusion Practice, was released in late 2007. The course catalogue has since expanded to 17 courses and one mobile device application (‘app’), with further courses in development. All courses are based on published guidelines, best practice and expert opinion.

At the end of June 2017 there were more than 425,000 learners registered with the program who had completed more than 850,000 courses.

For the 2016-17 reporting period the BEA program:

• received 58,510 new user registrations

• had 155,792 courses completed by users, with more than 12,983 courses completed on average each month

• was used by more than 1,500 Australian health care organisations (hospitals, pathology laboratories, staffing agencies etc) to improve staff knowledge and assist them to meet their accreditation requirements

• promoted the available courses in professional journals, at scientific, medical and nursing conferences, and provided resources for organisations to undertake their own promotions

• finalised new course content based on PBM Guideline Module 5 - Obstetrics and Maternity

• finalised and released a major review of the Clinical Transfusion Practice Collecting Blood Specimens and transporting blood courses

• commenced the development of courses to support the PBM Guidelines Module 6 - Neonatal and Paediatrics

• commenced major upgrades and new developments to the learning management system.

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National Safety and Quality Health Service Standards As part of the national health reforms, the ACSQHC (Commission) has developed the NSQHS Standards. These standards were intended to drive improvement in safety and quality for patients. They also provide a clear statement of the level of care consumers can expect from health services. The NBA is committed to supporting health service organisations to meet the requirements under Standard 7 Blood and Blood Products. During 2016-17 the NBA continued to work with the Commission and other stakeholders in the process to review Standard 7 in support of the development of the next edition of the Standards, scheduled for release in November 2017.

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Thank you

The National Blood Authority (NBA) would like to acknowledge the extraordinary help and support of the clinical, scientific and consumer community. The NBA could not fulfil its role in the blood sector without the considerable contribution of all stakeholders but we wanted to draw readers’ attention to the numerous groups that provide their valuable time and resources to a large number of initiatives and business as usual tasks. All external stakeholders in the blood sector provide the NBA with advice that allows us to produce quality outputs and meet the objectives of the national blood arrangements.

Thank you to our clinical, scientific, and consumer advisors.

These include the members of the:

S Jurisdictional Blood Committee Working Group for the review and update of the Patient Blood Management Guidelines

S The Patient Blood Management Guidelines Clinical/Consumer Reference Group for the update of the Critical Bleeding/Massive Transfusion module

S National Immunoglobulin Governance Advisory Committee including the Specialist working groups for Immunology, Haematology, Neurology and Transplantation medicine

S Australian Bleeding Disorders Registry Steering Committee

S Australian Bleeding Disorders Registry User Reference Group

S Australian Haemophilia Centre Directors’ Organisation (external)

S National Patient Blood Management Steering Committee

S National Blood Sector Education and Training Committee

S Haemovigilance Advisory Committee

S BloodNet User Reference Group

S MyABDR User Reference Group

The NBA would also like to acknowledge the support it receives from the many colleges, societies and individuals, who contribute to our publications, resources and tools.

There are too many to list here but if readers want to know who we are thanking they can go onto our website at www.blood.gov.au for further information.

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Research and Development

National Blood Sector Research and Development Priorities Under the National Blood Agreement the NBA is charged ‘...to facilitate and fund appropriate research, policy development or other action in relation to new developments by relevant government or non-government persons or bodies’. The National Blood Research and Development Strategic Priorities 2013-16 is currently under review. The purpose of the publication is to provide a useful resource to guide priority setting for research. It may be used by researchers to support funding requests, including from the National Health and Medical Research Council, by identifying that their research aligns with priorities communicated by governments.

National Blood Sector Research and Development Pilot In September 2015 the NBA received approval from funding governments to implement a Pilot to fund research and development activities in the blood sector.

The Pilot was established to fund a limited number of projects or activities assessed as likely to produce valuable research outcomes in identified key priority areas. In addition, information gathered from the Pilot will be used to inform consideration by governments of the viability and potential value of further blood sector specific research and development funding.

The Pilot targeted the following topics, where the priority for research had been identified by pre-existing strategic programs of the NBA and governments in the blood sector:

• patient blood management evidence gaps, as identified in each module of the PBM Guidelines

• efficient and effective use of immunoglobulin products, as highlighted through the Ig Governance Program.

The overarching objectives are to identify and support strategic priority areas appropriate for targeted blood sector research funding that will:

• enhance the sustainability and affordability of the national supply of blood products, including through increased efficiency and reduced blood product usage and wastage

• identify appropriate use and reduce inappropriate use of blood products

• maintain or enhance clinical outcomes for patients by providing evidence or new knowledge to:

• understand the biological action of blood products

• identify optimum treatment, dosing or indications for use for blood products

• compare the use of blood products with alternative strategies and treatments.

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In 2016-17, the NBA commenced funding of nine successful research grant applications from Round 1 of the Pilot. Applications for the second round under the Pilot were invited in early 2017. Round 2 attracted 23 high quality applications of which seven were deemed suitable for funding. Grants for these projects will commence in early 2017-18.

The NBA received input from clinical academic, research and government experts who participated in the review process and assisted the NBA in determining the mix of projects to be funded within the Pilot’s limited budget. The NBA is confident that the funded research will provide significant inroads towards achievement of the blood sector’s research outcomes. The outcomes of each grant funding round are reported on the NBA’s website.

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National Blood Sector Research and Development Pilot After the successful Round 1 of the Research and Development Pilot the NBA commenced and awarded grants for Round 2.

The NBA was impressed with the number and quality of submissions for Round 2. The NBA was grateful to have received high quality input from clinical, research and government experts who participated in the review process and assisted the NBA in determining the mix of projects to be funded within the limited pilot budget. The NBA is confident that the funded research will provide significant inroads towards achievement of the blood sector’s research outcomes.

Through this pilot, the NBA will test and evaluate its capacity to meet the objectives of the NBA’s Research and Development Framework objectives and its ability to administer a grants program.

The NBA sourced a group of peer reviewers from its clinical groups who had expertise in not only peer review but also in the topics of patient blood management and immunoglobulin therapy. The process was facilitated by an individual with significant expertise and experience in the management of scientific peer review processes. The process ensured that each application was evaluated in a fair, unbiased and equitable manner.

The topics funded for research in this Round 2 will address important knowledge gaps in both patient blood management and immunoglobulin therapy. Grants were offered as scholarships, seed grants or project grants. Research will inform clinical practice, practice improvement and policy.

PART 2 ANNUAL PERFORMANCE REPORTING 73

3 PART

STRUCTURE, GOVERNANCE AND AUTHORITY IN THE BLOOD SECTOR

PLANNING FRAMEWORK

CUSTOMER SERVICE CHARTER

EXTERNAL SCRUTINY

FRAUD CONTROL

HUMAN RESOURCES AND PEOPLE MANAGEMENT

MANAGEMENT AND ACCOUNTABILITY

PART 3

STRUCTURE, GOVERNANCE AND AUTHORITY IN THE BLOOD SECTOR Governance Arrangement The key governing bodies in the Australian blood sector and their roles and relationships with each other are set out in the National Blood Agreement and National Blood Authority Act 2003 and are depicted in Figure 3.1.

National Blood Authority (NBA)

National Blood Authority Advisory Board

Australian Health Ministers’ Advisory Council (AHMAC)

Commonwealth State & Territory Governments

Hospitals Principal Committee (HPC)

Jurisdictional Blood Commitee (JBC)

Assistant Minister for Health

Minister for Health

The Council of Australian Governments (COAG) Health Council

Suppliers of plasma products

Suppliers of fresh blood products

Suppliers of recombinant products

Suppliers of diagnostic products

Regulator: Therapeutic Goods Administration (TGA)

FIGURE 3.1 Governance and Authority in the Blood Sector

NBA ANNUAL REPORT / 2016-17 76

Establishment of the National Blood Authority (NBA) The National Blood Agreement between all governments outlines the policy framework for the current national blood arrangements. The Agreement outlines the:

• nationally agreed objectives of governments for the blood sector (primary and secondary)

• governance arrangements for the sector

• administrative arrangements for the management of the national blood supply

• financial arrangements for the national blood supply.

The NBA emerged from the 2001 Review of the Australian Blood Banking and Plasma Product Sector (Stephen Review). The Stephen Review noted the need for changes to the inconsistent and fragmented arrangements that applied to the blood sector at that time. More specifically, there were 30 agreements in existence between the governments, the Blood Service and CSL. In addition, supply costs had tripled between 1991 and 1999.

The Stephen Review recommended the strengthening of the arrangements for the coordination and oversight of Australia’s blood supply, including the establishment of a National Blood Authority to manage Australia’s blood supply at a national level.

Negotiations to develop a national management framework commenced in June 2001 in consultation with the states, territories and other key interest groups.

Commonwealth legislation allowing for the establishment of the NBA passed through both Houses of Parliament and the new Authority came into existence on 1 July 2003.

PART 3 MANAGEMENT AND ACCOUNTABILITY 77

NBA Governance Committees An overview of the NBA Governance structure is shown in Figure 3.2.

NBA Business Committee

NBA Chief Executive/ General Manager

NBA Audit Committee

Staff Participation Forum

ICT

Committee

Program Governance Committees

FIGURE 3.2 Governance and Authority in the NBA

Five governance committees assist the NBA Chief Executive to plan and manage corporate governance, outcome delivery, strategic projects and stakeholder interests:

• The NBA Business Committee is the primary governance committee for the NBA. It provides strategic oversight and direction for the management of the NBA and its business and finance activities.

The role of the NBA Business Committee is to:

• support and advise the Chief Executive

• provide strategic leadership, guidance and direction in relation to all business activities and processes and also in relation to people management, financial management and ICT issues

• review NBA business plans and activities, and monitor progress regularly against key milestones and deliverables

• consider NBA investment priorities and review these priorities on a regular basis

• oversee relevant sub-committees and project boards.

The Committee membership comprises the Chief Executive, Deputy General Manager, Executive Directors, Chief Finance Officer, HR Manager and the Chief Information Officer. The Committee is chaired by the Chief Executive and supported by the Executive Support Office. Other staff may be required to attend meetings for relevant agenda items.

NBA ANNUAL REPORT / 2016-17 78

• The ICT Steering Committee, chaired by the NBA Chief Executive, provides strategic direction and oversight of the NBA’s information, communications, technology and knowledge management activities. Membership of the committee includes Senior Executive Management, the Chief Finance Officer and the Chief Information Officer.

• The Project Governance Boards, chaired by the NBA Chief Executive, provide governance oversight of major strategic projects of material significance. The terms of reference and membership of each board is specific to the project. Project Governance Boards operated in 2016-17 for the following projects:

• BloodNet/ABDR Development and Enhancement

• Ig Governance Project

• BloodSTAR

• Pilot to update PBM Guidelines: Module 1

• National Blood Sector Research and Development Pilot.

• The NBA Audit Committee provides independent assurance and advice to the Chief Executive on strategies to enhance the organisation’s governance control and risk management framework, the planning and conduct of the NBA internal audit program and support financial and legislative compliance. The Committee met six times in 2016-17.

Its membership in 2016-17 was as follows:

• Mr Ken Barker (Chair)

• Mr Andrew Harvey

• Mr Paul Bedbrook

• Representatives from the Australian National Audit Office (ANAO) and the NBA internal auditors (RSM Australia) also attend meetings as observers for most matters.

• The Staff Participation Forum (SPF) - the NBA has established a Staff Participation Forum (SPF) to consult directly with its employees and their representatives about significant decisions that affect their working lives. The SPF is a group comprised of NBA staff representatives, NBA Management representatives and a Work Health and Safety representative.

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NBA Management As at 30 June 2017, the NBA Senior Executive Management team comprised the following:

• Chief Executive - Mr John Cahill

• Deputy General Manager/General Counsel - Mr Michael Stone

• Executive Director Fresh Blood, Data & Clinical Development - Ms Sandra Cochrane

• Executive Director Supply Management Plasma & Recombinant Products - Mr Ian Kemp

As at 30 June 2017, the NBA comprised the following 15 teams/business streams:

• Legal Services

• Executive Support Group

• Secretariat and Communications

• Immunoglobulin Governance

• Research and Development

• Horizon Scanning

• Human Resources

• Blood Operations Centre

• Information Management

• Supply Management - Plasma & Recombinant Products

• Health Provider Engagement

• Business Support

• Supply Management - Fresh Blood

• Blood Sector Clinical Development

• Data and Information Analysis.

Internal Audit The NBA’s internal audit program, guided by the Audit Committee, plays a key part in risk mitigation. The NBA has a comprehensive risk management framework that includes a living risk register and an annual bottom-up hierarchical risk review process. The Audit Committee reviews the risk register on an annual basis as a key input in developing the internal audit program.

RSM (Australia) conducted a range of audits and reviews in line with the work program developed in conjunction with the Audit Committee. The 2016-17 work program encompassed reviews of: contractor arrangements; workplace health and safety management systems; and post implementation review - transition to Shared Services Payroll Management.

The Audit Committee continued to monitor the implementation of internal audit report recommendations through status reports.

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PLANNING FRAMEWORK The NBA has established a comprehensive planning framework (2013-16) as depicted in Figure 3.3.

Current programs include:

• National Wastage Reduction

• National Patient Blood Management Guidelines Implementation

• National Blood Sector ICT Strategy

• National Blood Sector Research and Development

• National Blood Sector Data and Information

• National Blood Education and Training

• National Contract Development and Management

• Ig Governance

• Corporate Management and Governance.

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JBC Strategic Plan

NBA Corporate Plan

Objectives Strategies Programs Operations

Legislative and Policy Environment

Horizon Scanning

NBA Operational Plan NBA Risk Management Plan NBA Individual Performance Plans

NBA Annual Report / PBS

National Blood Authority Act 2003

Public Governance, Performance and Accountability Act 2013

Public Service Act 1999

Auditor General Act 1997

National Blood Agreement (for the Australian

Blood Sector)

Ministers’ Stewardship Statement (for health providers)

Ministers’ Statement of Expectations (for the ARCBS)

Domestic Supply Policy

Onshore

Fractionation Policy

Overseas Supply Policy

Secure the supply of blood and blood products

National Wastage Reduction

National Patient Blood Management Guidelines Implementation

National Blood Sector ICT Strategy

National Blood Sector Research and Development

National Blood Sector Data and Information

National Blood Education and Training

Corporate Management and Governance

National Contract Development and Management

Ig Governance

Provide a safe and affordable supply of blood and blood related products and services to

ensure access best meets clinical need in Australia

Drive performance improvement in the Australian Blood sector through a national

information and data analysis capability

Promote a best practice model of management and use of blood and blood related products and services in Australia

Develop policy and provide policy advice on the sustainability of the Blood sector in Australia,

including financial sustainability

Ensure the National the National Blood Authority is a high performing organisation

Improve risk management and blood sector performance

Promote the safe and efficient use of blood and blood products

FIGURE 3.3 NBA Planning Framework

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Progress against the Operational Plan is monitored and reported on by the Executive Group and the Chief Executive on a quarterly basis. The quarterly report on progress against key actions is provided to the NBA Board and Audit Committee.

In 2016-17, the NBA delivered 98 per cent of activities against the planned outcomes. Table 3.1 demonstrates the overall trend in the NBA’s delivery against our operational plans over the past five years.

TABLE 3.1 NBA’s performance in achieving operational plan objectives, 2011-12 to 2016-17

Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Performance (%) 87% 91% 96% 91% 97% 98%

Key operational achievements for 2016-17 included the following:

• the uninterrupted supply of blood and blood products to meet all clinical demand in accordance with the approved NSP&B

• implemented new Deed of Agreement with the Australian Red Cross Society signed on 20 February 2016

• Ig Governance program implemented and supports all supply authorisation for Ig, and new Ig governance system BloodSTAR implementation in all states and territories except NSW

• worked with jurisdictional and clinical committees to develop the new PBM Implementation Strategy for 2017-21

• commenced the redevelopment of BloodNet from the ground up to ensure the NBA improve speed and use of the system for the future. The redevelopment project, known as BloodNet 5, aims to release a range of enhancements, changes and improvements to the system

• national blood sector research and development Round 2 grants awarded

• continued collaborative work with the Australian Commission on Safety and Quality in Health Care (ACSQHC) on a review of the National Safety and Quality Health Service (NSQHS) Standards, Standard 7: Blood and Blood Products, and the completion of the National Patient Blood Management Collaborative, focussing on identification and management of pre-operative anaemia and iron deficiency

• publication of a range of data reports including the Report on the Issue and Use of Intravenous Immunoglobulin (IVIg) 2015-16, Australian Haemovigilance Report and the Australian Bleeding Disorders Registry Annual Report 2015-16.

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CUSTOMER SERVICE CHARTER The NBA Customer Service Charter sets out the standards of service people engaging with the NBA can expect. The NBA is committed to providing a professional, high quality and efficient service to clients, stakeholders and the general public. Our roles and responsibilities in dealing with external clients, and their rights in dealing with us, are described in the Charter, which is available on the NBA website at www.blood.gov.au/charter.

We invited feedback on our performance and during 2016-17; the NBA recorded 54 instances of positive feedback and no negative feedback.

EXTERNAL SCRUTINY There have been no judicial decisions, decisions of administrative tribunals or decisions of the Australian Information Commissioner in 2016-17 that have had, or may have, a significant impact on the operations of the NBA. There were no legal actions lodged against the NBA in 2016-17.

There have been no reports on the operations of the NBA by the Auditor-General (other than the reports on financial statements), or a Parliamentary committee or the Commonwealth Ombudsman in 2016-17. There were no capability reviews released during 2016-17.

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FRAUD CONTROL

Consistent with the Public Governance, Performance and Accountability Rule 2014 (section 10), the NBA conducts fraud risk assessments regularly and when there is a substantial change in the structure, functions or activities of the organisation.

The NBA updated its fraud risk assessment in 2016-17.

Fraud awareness training was conducted with NBA staff during 2016-17.

Under the current fraud control plan, the NBA continually monitors accountability and control frameworks to meet the specific needs of the agency, and ensures that it complies with the Public Governance, Performance and Accountability Rule 2014.

No instances of fraud were detected during the reporting year.

Certification of fraud control arrangements

I, John Cahill, certify that I am satisfied that for 2016-17, the National Blood Authority has:

• prepared fraud risk assessments and a fraud control plan;

• has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet the specific needs of the NBA; and

• taken all reasonable measures to appropriately deal with fraud relating to the NBA.

John Cahill Chief Executive National Blood Authority

PART 3 MANAGEMENT AND ACCOUNTABILITY 85

HUMAN RESOURCES AND PEOPLE MANAGEMENT

During 2016-17, the NBA continued its commitment to managing and developing its employees to meet organisational objectives. The results of the 2017 Australian Public Service Commission (APSC) Employee Census indicates the success of the NBA in continuing to be an organisation with a strong and happy team culture focussed on outcome delivery. The key points from the Employee Census are:

• 75 per cent of employees consider that their supervisor and senior leaders in the NBA act in accordance with the APS Values

• 62 per cent of employees stating that they consider the leadership of the NBA is of a high quality

• 60 per cent of employees consider that the most senior leaders are sufficiently visible i.e. seen in action

• 74 per cent of employees stating that the NBA’s workplace culture supports people in achieving a good work-life balance

• 63 per of employees are satisfied with the work-life balance in their current job

• 64 per cent of employees feel they are valued for their contribution to the NBA

• 76 per cent of employees stating that they enjoy the work in their current job

• 68 per cent of employees feel a strong personal attachment to the NBA

• 84 per cent of employees are satisfied with the non-monetary employment conditions at the NBA e.g. leave and flexible work arrangements

• 74 per cent of employees would recommend the NBA as a good place to work

• 84 per cent of employees are proud to work at the NBA.

Employee and agency census The surveys undertaken by the NBA in 2016-17 were the APSC State of the Service Employee Census and the APS State of the Service Agency Survey. The APSC set a target rate of 65 per cent of APS employee participation for the Employee Census and the NBA exceeded this with a 93 per cent return, 22 per cent higher than the APS participation rate of 71 per cent.

The overall employee census outcomes for the NBA were very pleasing, indicating the organisation has a stable, happy and motivated workforce. Areas for improvement relate to addressing underperformance and increasing opportunities for talent management/career progression and innovation.

NBA ANNUAL REPORT / 2016-17 86

Deputy General Manager/ General Counsel

Legal Services

Chief Executive / General Manager

Secretariat / Communications

Executive Director, Supply Management Plasma & Recombinant Products

Chief Information Officer

Health Provider Engagement

Business Support

Immunoglobulin Governance

Research & Development

Horizon Scanning

Human Resources Blood Operations

Centre

Information Management

Supply Management Plasma & Recombinant Products

Executive Director, Fresh Blood, Data & Clinical Development

Blood Sector Clinical Development

Data & Information Analysis

Supply Management Fresh Blood

Executive Support Group

Chief Financial Officer

FIGURE 3.4 NBA Organisation as at 30 June 2017

Our values The NBA strongly endorses the APS Values, Employment Principles and Code of Conduct and it is this basis which forms the expectations for the behaviour and conduct from all of our staff. Employees at the NBA understand their responsibilities associated with being a member of the APS and being a representative of the Australian Government.

PART 3 MANAGEMENT AND ACCOUNTABILITY 87

Staffing information The total number of APS staff employed in the NBA was 58 employees (53.05 full time equivalent) at the end of June 2017. Of these 58 employees, one person was on long-term leave. Tables 3.2 & 3.3 provide a breakdown of NBA staff numbers by classification, gender and employment type (prepared on substantive classification role as at 30 June 2017).

We have a diverse workforce with 14 per cent of NBA employees identifying as being from non-English speaking backgrounds and/or born outside of Australia.

Indigenous Staffing In 2016-17, the NBA did not have any employees who reported as identifying themselves as Indigenous. In 2016-17 the NBA made efforts to attract indigenous employees through open/non-targeted recruitment and retention processes that included exploring alternate pathways such as the Australian Government Indigenous Program. In addition, previously established relationships with indigenous recruitment organisations have been strengthened.

TABLE 3.2 Number of male and female full-time and part-time NBA staff at 30 June 2017

Substantive Role Classification Female (Full- Time)

Female

(Part-Time)

Male

(Full-Time)

Male

(Part-Time)

Total

Chief Executive Officer

Nil Nil 1 Nil 1

SES Nil Nil 1 Nil 1

EL2 3 Nil 3 Nil 6

Legal 1 Nil Nil 1 Nil 1

EL1 12 3 8 Nil 23

APS6 5 3 Nil Nil 8

APS5 5 3 3 Nil 11

APS4 4 Nil 2 Nil 6

APS3 1 Nil Nil Nil 1

Grand Total 30 9 19 0 58

NBA ANNUAL REPORT / 2016-17 88

TABLE 3.3 Number of male and female and ongoing and non-ongoing NBA staff at 30 June 2017

Substantive Role Classification

Female (Ongoing)

Female

(Non-ongoing)

Male

(Ongoing)

Male

(Non-ongoing)

Total

Chief Executive Officer

Nil Nil 1 Nil 1

SES Nil Nil 1 Nil 1

EL2 3 Nil 3 Nil 6

Legal 1 Nil Nil 1 Nil 1

EL1 13 2 8 Nil 23

APS6 8 Nil Nil Nil 8

APS5 7 1 2 1 11

APS4 3 1 1 1 6

APS3 1 Nil Nil Nil 1

Grand Total 35 4 17 2 58

We have 56 staff located in the ACT, 1 in Victoria and 1 in NSW. Both the Victoria and NSW employees are part-time.

The average age of NBA staff is 43.45 years. Table 3.4 provides a breakdown of the age demographic of NBA employees.

TABLE 3.4 Age demographic of NBA staff at 30 June 2017

Age profile Number of

employees

20 - 25 1

26 - 30 5

31 - 35 10

36 - 40 9

41 - 45 11

46 - 50 6

51 - 55 6

56 - 60 7

61 - 65 2

66 + 1

Total 58

PART 3 MANAGEMENT AND ACCOUNTABILITY 89

NBA Enterprise Agreement The current enterprise agreement (EA) was approved on 12 January 2016. The table below details salary levels of staff by classification for 2016-17.

TABLE 3.5 Salary levels of NBA staff by classification at 30 June 2017

Classification Minimum ($) Maximum ($)

EL 2 116,189 130,906

EL1 Legal 97,348 117,864

EL 1 97,771 111,044

APS Level 6 79,215 89,365

APS Level 5 71,807 75,789

APS Level 4 66,020 69,760

APS Level 3 58,271 64,591

TABLE 3.6 Numbers of NBA staff on types of employment agreements

Staff Enterprise

Agreement

Common law or Section 24 Agreement

Chief Executive Officer Nil Nil

SES Nil 1

Non-SES 56 Nil

NBA ANNUAL REPORT / 2016-17 90

Non-salary benefits The EA and other employment arrangements provide a range of non-salary benefits in addition to those consistent with national employment standards and the Fair Work Act 2009. The benefits provided are very similar to those provided by many other agencies and are detailed in the EA and available on the NBA website at https://www.blood.gov.au/employment-benefits.

Non-SES employees may have access to the following non-salary benefits

• access to the Employee Assistance Program (EAP)

• maternity and adoption leave

• parental leave

• leave for compassionate purposes

• access to recreation and personal leave at half pay

• flex-time (for APS classified employees)

• flexible working arrangements with time off in lieu (TOIL) where appropriate (for Executive Level employees only)

• access to home-based work, laptop computers, internet access, and mobile phones

• financial and/or paid leave to support professional and personal development

• provision of eyesight testing and reimbursement of prescribed eyewear costs specifically for use with screen-based equipment

• access to the NBA’s health and wellbeing program

• influenza vaccinations for staff and their immediate family members

• annual Christmas close-down

• access to purchase up to an additional four weeks annual leave per year

• access to salary packaging arrangements

SES non-salary benefits include all of the above (except flex-time and TOIL) plus

• onsite car parking

• airport lounge membership

• cash in lieu of vehicle leasing arrangements

Workforce planning, staff retention and turnover Staff turnover remained steady at 20.7 per cent with 12 people leaving the NBA during 2016-17.

The average length of service for staff at the NBA is approximately 5.02 years, which is consistent with the previous year and 48 per cent of staff average length of service at the NBA is more than five years, an increase of 5 per cent from the previous year.

PART 3 MANAGEMENT AND ACCOUNTABILITY 91

Productivity gains During the year, the NBA continued to rationalise staffing levels, in particular program activities and contributed to the government’s efficiency dividend strategy. This rationalisation will continue to be implemented throughout the 2017-18 year.

The NBA transitioned its payroll function to the Department of Health Shared Services Centre in 2015. The NBA continued to implement productivity gains by utilising a number of other Commonwealth panel arrangements for the provision of services such as recruitment, training, annual influenza vaccinations and the Employee Assistance Program (EAP).

Remuneration and performance pay Total remuneration for senior executive officers is determined through negotiation between individual officers and the Chief Executive, taking into account the broader Government economic environment as well as APS and Remuneration Tribunal benchmark data. Performance pay is not applicable to NBA staff.

Professional and personal development The NBA recognises the importance of ensuring that staff continue to develop their skills and this is facilitated through sourced internal training, in-house training programs and external training and development opportunities such as stakeholder engagement, conferences, seminars, accredited training organisations and learning institutions. To supplement this, during 2016-17 the NBA explored options for implementing an online e-Learning system in support of ongoing professional and personal development for staff.

As part of its role in the health sector, the NBA is encouraged to attend a number of health conferences to promote blood usage awareness. Opportunities are offered to staff from all areas of the NBA.

The NBA fosters a culture of cohesion to further enhance its organisational productivity, build team relationships, improve cross team communications, increase staff retention and further build and promote our positive, collegiate culture.

Staff health and wellbeing The NBA recognises the value of encouraging a work environment that supports the health and fitness of its employees. The eligible activities which are now open to staff include:

• health memberships

• specialist advice/programs

• sporting clothing and equipment.

NBA ANNUAL REPORT / 2016-17 92

Work health and safety (WHS) Workplace health and safety matters are standing agenda items that are routinely discussed at a variety of organisational reporting meetings such as quarterly HR reporting to the Senior Executive Management group, the Operational Plan and the Staff Participation Forum.

There were no reportable incidents lodged with Comcare during the reporting year.

Initiatives that were undertaken by the NBA during the year to maintain its ongoing commitment to a safe and secure workplace included:

• the continued availability of workstation assessments for all new starters as well as assessments for existing staff who felt it necessary for their wellbeing

• access to the EAP

• expansion of ICT remote working capabilities to cover all staff, enabling staff to work from outside the office on an ad hoc basis

• a dedicated carer’s room for parents who do not have the benefit of their own office and who need to bring their children into the workplace for short periods of time as a bridging arrangement for childcare

• sit-to-stand desks were purchased for all staff who requested them. This initiative continued to be rolled out to all staff in 2016-17 and will continue throughout 2017-18 as required

• development of a WHS Governance framework.

PART 3 MANAGEMENT AND ACCOUNTABILITY 93

4 PART

FINANCIAL MANAGEMENT

FINANCIAL PERFORMANCE

ASSETS MANAGEMENT

PURCHASING

FINANCIAL STATEMENTS

FINANCIAL MANAGEMENT

PART 4

FINANCIAL MANAGEMENT

Funding The functions of the NBA are outlined in the National Blood Authority Act 2003 and the National Blood Agreement. As a material statutory agency, the NBA has a range of corporate and compliance responsibilities under the National Blood Authority Act 2003, the Public Governance, Performance and Accountability Act 2013, and the Australian Public Service Act 1999, along with a responsibility to meet ministerial, parliamentary and financial reporting requirements.

Under the National Blood Agreement between the Australian Government and the states and territories, 63 per cent of NBA funding is provided by the Australian Government and the remaining 37 per cent is provided by the state and territory governments. The funding covers both the national blood supply and the operations of the NBA.

Special accounts The NBA operates through two special accounts, the National Blood Account and the NMF Blood and Blood Products Special Account 2017.

Special accounts are held in the Consolidated Revenue Fund and are used for setting aside and recording amounts to be used for specified purposes. Funding received from the Australian Government and the states and territories is held within the special accounts and expended as required.

Funding for the supply of blood and blood products and the operation of the NBA is included in the National Blood Account, established under section 40 of the National Blood Authority Act 2003.

The NMF Blood and Blood Products Special Account 2017 was established under section 78 of the Public Governance, Performance and Accountability Act 2013 to accumulate funds required to meet potential product liability claims against the Blood Service. Contributions to the account are made by all governments and the Blood Service. In addition, interest is received on special account balances.

NBA ANNUAL REPORT / 2016-17 96

For budgeting and accounting purposes, the NBA’s financial transactions are classified as either departmental or administered revenues or expenses:

• assets, liabilities, revenues and expenses controlled by the NBA for its operations are classified as departmental revenues and expenses

• activities and expenses controlled or incurred by the NBA on behalf of governments, mainly for the procurement of the requested products and services, are classified as administered revenues and expenses.

Transactions in the National Blood Account are separated into departmental and administered components. All balances in the NMF (Blood and Blood Products) Special Account are administered funds.

The NBA’s agency resource statement and total resources for outcome tables are given in Appendix 4. Table 4.1 summarises the NBA’s revenue and expenditure for 2016-17.

TABLE 4.1 Overall funding and expenditure for the NBA in 2016-17: a summary

Funding Incl.

Appropriations ($M) Expenditure ($M)

Departmental - NBA Operations 10,012 9,615

Administered - national blood and blood product supply

1,050,159 1,062,835

PART 4 FINANCIAL MANAGEMENT 97

FINANCIAL PERFORMANCE

This section provides a summary of the NBA’s financial performance for 2016-17. Details of departmental and administered results are shown in the audited financial statements, and this summary should be read in conjunction with those statements.

Audit report The NBA received an unqualified audit report for 2016-17.

Departmental finances The NBA’s departmental finances cover the NBA’s operations.

Operating result The NBA’s income statement reports a 2016-17 operating surplus of $0.397 million, compared with an operating deficit of $0.255 million in 2015-16. Table 4.2 shows the key results for the period 2012-13 to 2016-17.

TABLE 4.2 Key results in financial performance, 2012-13 to 2016-17

Revenue & expenses 2012-13

($’000)

2013-14 ($’000) 2014-15 ($’000)

2015-16 ($’000) 2016-17 ($’000)

Contributions from the Australian Government 6.201 6.090 6.266 5.719 5.636

Contributions from states and territories and other revenue 4.106 4.113 4.590 3.877 4.376

Total revenue 10.307 10.203 10.856 9.596 10.012

Employee expenses 6.490 6.632 6.695 6.469 6.744

Supplier expenses 3.569 3.149 3.753 3.002 2.350

Other expenses 0.890 0.657 0.439 0.380 0.521

Total expenses 10.949 10.438 10.887 9.851 9.615

Operating result (0.642) (0.235) (0.031) (0.255) 0.397

NBA ANNUAL REPORT / 2016-17 98

Revenue Total departmental revenue received in 2016-17 amounted to $10.012 million: $5.636 million in funding from the Australian Government; $4.295 million in contributions received from the states and territories and other revenue; and $0.081 million for resources received free of charge. This represents an increase of $0.416 million (4.3 per cent) on revenue received in 2015-16. Other revenue refers to contributions arising from officers transferring from other agencies.

Expenses The NBA’s expenses for 2016-17 amounted to $9.615 million, 2.4 per cent lower than in 2015-16.

Balance sheet Details of the NBA’s assets and liabilities are presented in the audited financial statements in this report.

Financial assets The NBA held cash and cash equivalents of $9.884 million at 30 June 2017. This included funds received from all jurisdictions and transferred to the Official Public Account held by the Department of Finance until required for expenditure. Trade and other receivables increased by $0.070 to $0.765 million.

Non-financial assets There was no significant change in the carrying amount of non-financial assets during the financial year.

Payables There was no significant change in the carrying amount of Payables during the financial year.

Provisions Employee provisions, which cover annual and long service leave entitlements, increased slightly by $0.178 million to $1.892million.

Administered finances The NBA’s administered finances include contributions from all states and territories and the Australian Government for the supply of blood and blood products. Each year the Council of Australian Governments (COAG) Health Council approves an annual National Supply Plan and Budget, which is formulated by the NBA from demand estimates provided by the states and territories.

PART 4 FINANCIAL MANAGEMENT 99

Revenue Total revenue for 2016-17 is presented in Table 4.3. Total revenue increased by $4.880 million (a 0.5 per cent increase, down from the 12.7 per cent increase the prior year) for the current financial year. In 2016-17, the NBA returned $80.46 million (2015-16 $113 million) to the Commonwealth, State and Territory Governments for the 2015-16 end of year reconciliation as part of the National Blood Agreement.

TABLE 4.3 Administered revenue, 2012-13 to 2016-17

Administered revenue 2012-13

($’000)

2013-14 ($’000) 2014-15 ($’000)

2015-16 ($’000) 2016-17 ($’000)

Funding for supply of blood and blood products

1,049.337 1,095.922 922.718 1,040.865 1,046.325

Total administered revenues 1,058.281 1,101.410 927.522 1,045.279 1,050.159

Expenses Total administered expenses for 2016-17 including grants and rendering of goods and services are presented in Table 4.4. Administered expenses for 2016-17 decreased by 0.3 per cent over those for 2015-16. The Blood Service as part of the Output Based Funding Model returned $42.23 million in 2016-17 (2015-16 $40.394 million).

TABLE 4.4 Key results of administered expenses, 2012-13 to 2016-17

Administered expense 2012-13

($’000)

2013-14 ($’000) 2014-15 ($’000)

2015-16 ($’000) 2016-17 ($’000)

Grants to the private sector - non-profit organisation

8.092 8.331 8.577 8.830 0.401

Rendering of goods and services - external entities

1,003.772 1,035.847 960.818 1,056.815 1,061.265

Other 0.493 0.736 0.803 0.716 1.169

Total administered expenses 1,012.357 1,044.914 970.198 1,066.361 1,062.835

NBA ANNUAL REPORT / 2016-17 100

Administered assets and liabilities Administered assets comprise the following:

• funds held in the Official Public Account

• investments made in relation to the NMF

• Goods and Services Tax (GST) receipts from the Australian Taxation Office and payments to suppliers for products

• blood and blood product inventory held for distribution, including the national reserve of blood products

• a prepayment to the Blood Service as part of the OBFM.

Administered liabilities comprise payables to suppliers.

As a result of the deficit described above, net administered assets decreased by $7.479 million during 2016-17.

PART 4 FINANCIAL MANAGEMENT 101

ASSETS MANAGEMENT

The NBA has developed an asset replacement strategy to ensure that it has adequate funding for the replacement of assets as these come to the end of their useful life.

NBA ANNUAL REPORT / 2016-17 102

PURCHASING

NBA adheres to the Commonwealth Procurement Rules and Best Practice Guidance when undertaking procurements. The guidelines are applied to the NBA’s activities through the accountable authority’s management instructions and key business processes.

The NBA has developed business processes to ensure that the knowledge and best practices developed within the agency for key purchasing activities are captured and made available to new staff and that relevant procedures and processes are documented and followed.

Over recent years several internal audit programs have tested these processes to ensure that they meet government policy and better practice. The audit findings have been consistently favourable in relation to complying with mandatory processes, but have also recommended opportunities to improve processes; these have been implemented.

The key business processes are constantly reviewed and refined as part of the NBA’s own requirement for continual improvement in the management of its core business functions.

Exempt contracts The Chief Executive did not issue any exemptions from the required publication of any contract or standing offer in the purchasing and disposal gazette.

Competitive tendering and contracting There were no contracts of $100,000 or more (inclusive of GST) let in 2016-17 that did not provide for the Auditor-General’s access to the contractor’s premises.

PART 4 FINANCIAL MANAGEMENT 103

Consultants The selection and engagement of consultants was treated in the same way as the procurement of other property and services and was conducted in accordance with the Public Governance, Performance and Accountability Act 2013, Commonwealth Procurement Rules and internal policies and procedures. During 2016-17, two new consultancy contracts were entered into involving total actual expenditure of $58,960 (GST inclusive). In addition, two ongoing consultancy contracts were active during the 2016-17 year, involving actual expenditure of $10,962 (GST inclusive). Total expenditure on consultancies in 2016-17 was $69,922 (GST inclusive).

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website, www.tenders.gov.au. No contracts were entered into that were exempt from reporting on the AusTender website, www.tenders.gov.au

Procurement Initiatives to Support Small Business The NBA supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website:

www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts

The NBA recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website: www.treasury.gov.au

The NBA has in place procurement practices which support SMEs. This includes but is not limited to electronic systems or other processes used to facilitate on-time payment performance, including the use of payment cards.

Table 4.5 shows total expenditure on all consultancy services from 2012-13 to 2016-17 covering both new contracts let in the applicable year and ongoing contracts let in previous years.

TABLE 4.5 Expenditure on consultancy services, 2012-13 to 2016-17

Year No. let Total expenditure on new

and existing consultancies ($)

2012-13 11 1,658,232

2013-14 20 2,277,034

2014-15 17 1,193,693

2015-16 11 424,193

2016-17 4 69,922

NBA ANNUAL REPORT / 2016-17 104

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PART 4 FINANCIAL MANAGEMENT 105

FINANCIAL STATEMENTS

GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777

INDEPENDENT AUDITOR’S REPORT

To the Assistant Minister for Health

Opinion

In my opinion, the financial statements of the National Blood Authority for the year ended 30 June 2017:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the National Blood Authority as at 30 June 2017 and its financial performance and cash flows for the year then ended.

The financial statements of the National Blood Authority, which I have audited, comprise the following statements as at 30 June 2017 and for the year then ended:

 Statement by the Accountable Authority and Chief Financial Officer;  Statement of Comprehensive Income;  Statement of Financial Position;  Statement of Changes in Equity;  Cash Flow Statement;  Administered Schedule of Comprehensive Income;  Administered Schedule of Assets and Liabilities;  Administered Reconciliation Schedule;  Administered Cash Flow Statement; and  Notes to and forming part of the financial statements, comprising significant accounting policies and other

explanatory information.

Basis for Opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the National Blood Authority in accordance with the relevant ethical requirements for financial statement

audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants to the extent that they are not in conflict with the Auditor-General Act 1997 (the Code). I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Accountable Authority’s Responsibility for the Financial Statements

As the Accountable Authority of the National Blood Authority the Chief Executive is responsible under the Public Governance, Performance and Accountability Act 2013 for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under that Act. The Chief Executive is also responsible for such internal control as the Chief Executive determines is necessary to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Chief Executive is responsible for assessing the National Blood Authority’s ability to continue as a going concern, taking into account whether the entity’s operations will cease as a result of an administrative restructure or for any other reason. The Chief Executive is also responsible for disclosing matters related to going concern as applicable and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

NBA ANNUAL REPORT / 2016-17 106

Auditor’s Responsibilities for the Audit of the Financial Statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;  conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern; and  evaluate the overall presentation, structure and content of the financial statements, including the disclosures,

and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Muhammad Qureshi Acting Executive Director

Delegate of the Auditor-General

Canberra 17 August 2017

PART 4 FINANCIAL MANAGEMENT 107

NBA ANNUAL REPORT / 2016-17 108

CONTENTS

Certification

Primary financial statement

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Cash Flow Statement

Administered Schedule of Comprehensive Income

Administered Schedule of Assets and Liabilities

Administered Reconciliation Schedule

Administered Cash Flow Statement

Overview

Notes to the financial statements

1. Departmental Financial Performance

1.1 Expenses

1.2 Own-Source Income

2. Departmental Financial Position

2.1 Financial Assets

2.2 Non-Financial Assets

2.3 Payables

2.4 Other Provisions

3. Income and Expenses Administered on Behalf of Government

3.1 Administered - Expenses

3.2 Administered - Income

4. Assets and Liabilities Administered on Behalf of Government

4.1 Administered - Financial Assets

4.2 Administered - Non-Financial Assets

4.3 Administered - Payables

5. Funding

5.1 Appropriations

5.2 Special Accounts

6. People and relationships

6.1 Employee Provisions

6.2 Key Management Personnel Remuneration

6.3 Related Party Disclosures

7. Managing uncertainties

7.1 Contingent Assets and Liabilities

7.2 Financial Instruments

7.3 Administered - Financial Instruments

7.4 Fair Value Measurement

7.5 Administered - Fair Value Measurement

8. Other information

8.1 Budgetary Reports and Explanations of Major Variances

PART 4 FINANCIAL MANAGEMENT 109

NATIONAL BLOOD AUTHORITY

STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 June 2017

Notes 2017 2016

$’000 $’000

NET COST OF SERVICES

Expenses Employee benefits 1.1A 6 744 6 469

Suppliers 1.1B 2 350 3 002

Grants - Non-profit organisations 140 -

Depreciation and amortisation 2.2 354 374

Finance costs - Unwinding of discount 2 ( 1)

Write-Down and Impairment of Assets - Revaluation decrements 10 -

Losses from asset sales 15 7

Total expenses 9 615 9 851

Own-Source Income Own-source revenue

Sale of goods and rendering of services 1.2A 496 290

Other revenue - Funding from State and Territory governments 3 799 3 493

Total own-source revenue 4 295 3 783

Gains

Resources received free of charge - Remuneration of auditors 81 94

Total gains 81 94

Total own-source income 4 376 3 877

Net cost of services 5 239 5 974

Revenue from Government - Departmental annual appropriations 5 636 5 719

Surplus/(Deficit) attributable to the Australian Government 397 ( 255)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 2.2 101 -

Total other comprehensive income 101 -

Total comprehensive income/(loss) attributable to the Australian Government 498 ( 255)

The above statement should be read in conjunction with the accompanying notes

NBA ANNUAL REPORT / 2016-17 110

NATIONAL BLOOD AUTHORITY

STATEMENT OF FINANCIAL POSITION

as at 30 June 2017

Notes 2017 2016

$’000 $’000

ASSETS

Financial Assets

Cash and cash equivalents 2.1A 9 884 8 494

Trade and other receivables 2.1B 765 695

Total financial assets 10 649 9 189

Non-Financial Assets

Leasehold improvements 2.2 732 794

Property, plant and equipment 2.2 497 554

Intangibles 2.2 116 169

Prepayments 168 149

Total non-financial assets 1 513 1 666

Total assets 12 162 10 855

LIABILITIES

Payables

Suppliers 2.3A 384 397

Other payables 2.3B 616 605

Total payables 1 000 1 002

Provisions

Employee provisions 6.1 1 892 1 714

Other provisions 2.4 143 141

Total provisions 2 035 1 855

Total liabilities 3 035 2 857

Net assets 9 127 7 998

EQUITY

Contributed equity 3 944 3 313

Reserves 460 359

Retained surplus 4 723 4 326

Total equity 9 127 7 998

The above statement should be read in conjunction with the accompanying notes

PART 4 FINANCIAL MANAGEMENT 111

NATIONAL BLOOD AUTHORITY

STATEMENT OF CHANGES IN EQUITY

for the year ended 30 June 2017

2017 2016 2017 2016 2017 2016 2017 2016

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance

Balance carried forward from previous period

4 326 4 881 359 359 3 313 3 250 7 998 8 490

Adjusted opening balance

4 326 4 881 359 359 3 313 3 250 7 998 8 490

Comprehensive Income

Other comprehensive income

- - 101 - - - 101 -

Surplus / (Deficit) for the period

397 ( 255) - - - - 397 ( 255)

Total comprehensive income attributable to Australian Government

397 ( 255) 101 - - - 498 ( 255)

Transactions with owners

Distributions to owners

Returns of capital - Restructuring

- ( 300) - - - - - ( 300)

Contributions by owners

Departmental capital budget

- - - - 631 63 631 63

Total transactions with owners

- ( 300) - - 631 63 631 ( 237)

Closing balance as at 30 June attributable to Australian Government

4 723 4 326 460 359 3 944 3 313 9 127 7 998

Accounting Policy:

Equity Injection

Other Distributions to Owners

Contributed equity/capital

Total equity

Retained earnings

Asset revaluation

surplus

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year. The FRR require that distributions to owners be debited to contributed equity unless it is the in the nature of a dividend. In 2015, the Government decided not to proceed with the merger of the National Blood Authority and the Organ and Tissue Authority, as previously announced in the 2014-15 Budget. Due to this decision, the NBA

returned $300k in 2015-16 to the Department of Finance.

The above statement should be read in conjunction with the accompanying notes

NBA ANNUAL REPORT / 2016-17 112

NATIONAL BLOOD AUTHORITY

CASH FLOW STATEMENT

for the year ended 30 June 2017

2017 2016

$’000 $’000

OPERATING ACTIVITIES

Cash received

Appropriations 5 639 5 718

Sales of goods and rendering of services 4 300 3 742

Net GST received 228 308

Total cash received 10 167 9 768

Cash used

Employees 6 517 6 373

Suppliers 2 716 3 547

Total cash used 9 233 9 920

Net cash from/(used by) operating activities 934 ( 152)

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 8 1

Total cash received 8 1

Cash used

Purchase of property, plant and equipment 105 106

Purchase of intangibles 9 33

Total cash used 114 139

Net cash (used by) investing activities ( 106) ( 138)

FINANCING ACTIVITIES

Cash received

Contributed equity - Departmental capital budget 562 145

Total cash received 562 145

Net cash from financing activities 562 145

Net increase / (decrease) in cash held 1 390 ( 145)

Cash and cash equivalents at the beginning of the reporting period 8 494 8 639

Cash and cash equivalents at the end of the reporting period 1 9 884 8 494

1 As shown in the Statement of Financial Position.

The above statement should be read in conjunction with the accompanying notes

PART 4 FINANCIAL MANAGEMENT 113

NATIONAL BLOOD AUTHORITY

ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME

for the year ended 30 June 2017

2017 2016

Notes $’000 $’000

NET COST OF SERVICES

Expenses

Employee Benefits 3.1A 345 269

Suppliers 3.1B 1 061 265 1 056 815

Grants - Non-profit organisations 3.1C 401 8 830

Depreciation and amortisation 4.2B 824 447

Total expenses 1 062 835 1 066 361

Income

Revenue

Non-taxation revenue

Funding from governments 3.2 1 046 325 1 040 865

Interest - Deposits 3 834 4 411

Other revenue - 3

Total non-taxation revenue 1 050 159 1 045 279

Total revenue 1 050 159 1 045 279

Net (cost of) / contribution by services ( 12 676) ( 21 082)

Surplus/(Deficit) ( 12 676) ( 21 082)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 7 -

Total other comprehensive income 7 -

Total comprehensive income/(loss) 3.1B & 3.2 ( 12 669) ( 21 082)

The above schedule should be read in conjunction with the accompanying notes

NBA ANNUAL REPORT / 2016-17 114

NATIONAL BLOOD AUTHORITY

ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES

as at 30 June 2017

2017 2016

Notes $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 4.1A 175 550 174 005

Trade and other receivables 4.1B 20 473 21 635

Other investments 4.1C 123 100 119 600

Total financial assets 319 123 315 240

Non-financial assets

Inventories 4.2A 95 125 104 776

Property, plant and equipment 4.2B 103 188

Intangibles 4.2B 3 001 2 282

Prepayments 76 064 76 055

Total non-financial assets 174 293 183 301

Total assets administered on behalf of Government 493 416 498 541

LIABILITIES

Payables

Suppliers 4.3 53 843 51 489

Total payables 53 843 51 489

Total liabilities administered on behalf of Government 53 843 51 489

Net assets 439 573 447 052

The above schedule should be read in conjunction with the accompanying notes

PART 4 FINANCIAL MANAGEMENT 115

NATIONAL BLOOD AUTHORITY

ADMINISTERED RECONCILIATION SCHEDULE

as at 30 June 2017

2017 2016

$’000 $’000

Opening administered assets less administered liabilities as at 1 July 447 052 461 064

Net (cost of)/contribution by services

Income 1 050 159 1 045 279

Expenses

Payments to entities other than corporate Commonwealth entities ( 1 062 835) ( 1 066 361)

Payments to corporate Commonwealth entities - -

Other comprehensive income

Revaluations transferred to reserves 7 -

Transfers (to)/from the Australian Government:

Appropriation transfers from Official Public Account:

Annual appropriations 5 190 7 070

Closing assets less liabilities as at 30 June 439 573 447 052

Accounting Policy:

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the NBA for use by the Government rather than the NBA is administered revenue. Collections are

transferred to the Official Public Account (OPA), maintained by the Department of Finance. Conversely, cash is drawn

from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and

from the OPA are adjustments to the administered cash held by the NBA on behalf of the Government, and reported as

such in the administered cash flow statement and in the administered reconciliation schedule.

The above schedule should be read in conjunction with the accompanying notes

NBA ANNUAL REPORT / 2016-17 116

NATIONAL BLOOD AUTHORITY

ADMINISTERED CASH FLOW STATEMENT

for the year ended 30 June 2017

2017 2016

Notes $’000 $’000

OPERATING ACTIVITIES

Cash received

Commonwealth contributions 658 361 648 651

State and territory contributions 383 424 385 772

Interest 4 205 4 247

Net GST received 104 143 107 820

Other ( 13) 43

Total cash received 1 150 120 1 146 533

Cash used

Employees 345 270

Grants 401 8 830

Suppliers 1 147 942 1 169 322

Total cash used 1 148 688 1 178 422

Net cash from/(used by) operating activities 1 432 (31 889)

INVESTING ACTIVITIES

Cash received

Investments 58 200 57 062

Total cash received 58 200 57 062

Cash used

Purchase of property, plant & equipment and intangibles 1 577 1 785

Investments 61 700 62 400

Total cash used 63 277 64 185

Net cash(used by) investing activities ( 5 077) ( 7 123)

Net increase/(decrease) in cash held (3 645) (39 012)

Cash and cash equivalents at the beginning of the reporting period 174 005 205 947

Cash from Official Public Account for:

- Appropriations 5 190 7 070

Total cash from OPA 5 190 7 070

Cash and cash equivalents at the end of the reporting period

1 4.1A 175 550 174 005

1 As shown in the administered schedule of assets and liabilities

The above schedule should be read in conjunction with the accompanying notes

PART 4 FINANCIAL MANAGEMENT 117

NATIONAL BLOOD AUTHORITY Overview Note for the year ended 30 June 2017

Overview

Objectives of the National Blood Authority The National Blood Authority (NBA) is a not-for-profit Australian Government controlled entity which was established on 1 July 2003 with the principal role of managing national blood arrangements, ensuring sufficient supply, and providing a new focus on the quality and appropriateness of blood products. The NBA manages the supply of blood and blood products on behalf of the Commonwealth and all state and territory governments, with the Commonwealth contributing 63 percent of funding, and State and Territory governments providing 37 percent.

The NBA is structured to meet the following outcome:

Outcome 1: Access to a secure supply of safe and affordable blood products, including through national supply arrangements and coordination of best practice standards within agreed funding policies under the national blood arrangements.

The continued existence of the NBA in its present form, and with its present programs, is dependent on Government policy, the enabling legislation National Blood Authority Act 2003, and on continuing funding by Parliament and contributions from States and Territories for the NBA’s administration and programs.

NBA activities contributing to Outcome 1 are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the NBA in its own right. Administered activities involve the management or oversight by the NBA, on behalf of the governments, of items controlled or incurred by the governments.

The NBA conducts the following administered activities on behalf of the governments: management and coordination of Australia’s blood supply in accordance with the National Blood Agreement agreed by the Australian Government and the governments of the States and Territories.

The NBA operates under a special account - the National Blood Account. Revenues and expenses associated with the funding and supply of blood and blood products, as well as the operations of the NBA, are recorded in this special account.

The NBA also manages another special account - the NMF Blood and Blood Products Special Account which is intended to meet potential blood and blood product liability claims against the Australian Red Cross Blood Service. This special account commenced on 1 April 2017. It replaces the National Managed Fund (Blood and Blood Products) Special Account which had a sunset clause and was terminated on 31 March 2017.

Details of planned activities for the year can be found in the Agency Portfolio Budget Statements for 2016-17 which have been tabled in Parliament.

Basis of Preparation of the Financial Statements The financial statements are general purpose financial statements and are required by Section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

• Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2016; and • Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.The financial statements are presented in Australian dollars.

NBA ANNUAL REPORT / 2016-17 118

NATIONAL BLOOD AUTHORITY Overview Note for the year ended 30 June 2017

New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements

The NBA adopted all new, revised and amending standards and interpretations that were issued by the Australian Accounting Standards Board (AASB) prior to the signing of the statement by the Accountable Authority and Chief Financial Officer and are applicable to the current reporting period. The adoption of these standards and interpretations did not have a material effect, and are not expected to have a future material effect, on the NBA’s financial statements.

During the period, the NBA adopted AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures of Not-for-Profit Public Sector Entities, and AASB 124 Related Party Disclosures. The result of the adoption of these standards have had an immaterial effect on the fair value disclosures included in the financial statements, and have had no impact on the disclosure of transactions with parties related to the NBA.

Future Australian Accounting Standard Requirements The following new, revised, and amended standards and interpretations were issued by the AASB prior to the signing of the Statement by the Accountable Authority and Chief Financial Officer. The NBA has assessed the potential impact and does not expect these to have a future material financial impact on the financial statements.

• AASB 9 Financial instruments (applicable from the year ending 30 June 2018) represents the first phase of a three-phase process to replace AASB 139 Financial Instruments: Recognition and Measurement. The standard reduces the four categories of financial asset to two: amortised cost and fair value. Given the make-up of the NBA’s financial assets (amortised cost items such as loans, receivables, term deposits), the new standard is not expected to impact its treatment or valuation of these assets.

• AASB 16 Leases (applicable in reporting periods beginning on or after 1 January 2019) introduces new criteria for assessing contracts to identify leases. From 1 July 2019 certain leases previously reported as expenses and commitments will be recorded on the Statement of Financial Position as right-of-use assets recorded at cost, and adjusted for depreciation and impairment or subject to revaluation, and lease liabilities adjusted for interest on the lease liability and payments made. Leases with terms for 12 months or less and for low -value items will be recorded as expenses. Given the amount and dollar value of the NBA current leases, the new standard is not expected to have a future material impact on the NBA’s financial statements.

Taxation The NBA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses, liabilities and assets are recognised net of GST except: a) where the amount of the GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

Reporting of Administered Activities

Administered revenue, expenses, assets liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Events after the Reporting Period

Departmental There were no events occurring after 30 June 2017 with the potential to significantly affect the ongoing structure and financial activities of the NBA.

Administered There were no events occurring after 30 June 2017 with the potential to significantly affect the ongoing structure and financial activities of the NBA.

PART 4 FINANCIAL MANAGEMENT 119

NATIONAL BLOOD AUTHORITY Overview Note for the year ended 30 June 2017

New Accounting Policy Adopted

As per the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) Division 6 Section 48 (6): The balance of the special account has been accounted for as cash equivalents in the NBA’s financial statements.

The impact of adopting this new accounting policy is that the balance of the special account has been reclassified from Receivables into cash, and the change has also been applied retrospectively to the prior year as per table below:

Statement affected Item on the statement

2016-17 2015-16

Before After Before After

Statement of Financial Position

Cash and cash equivalents

30

9,884

54

8,494

Trade and other receivables

10,619

765

9,135

695

Subtotal

10,649

10,649

9,189

9,189

Administered Schedule of Assets and Liability

Cash and cash equivalents

436

175,550

489

174,005

Trade and other receivables

195,587

20,473

195,151

21,635

Subtotal

196,023

196,023

195,640

195,640

Cash Flow Statement

Cash and cash equivalents at the beginning of the reporting period

54

8,494

21

8,639

Cash and cash equivalents at the end of the reporting period

30

9,884

54

8,494

Administered Cash Flow Statement

Cash and cash equivalents at the beginning of the reporting period

489

174,005

334

205,947

Cash and cash equivalents at the end of the reporting period

436

175,550

489

174,005

Note 2.1: Financial Assets

Note 2.1A Cash and Cash Equivalents

30

9,884

54

8,494

Note 2.1B Trade and Other Receivables

10,619

765

9,135

695

Subtotal

10,649

10,649

9,189

9,189

Note 4.1: Administered - Financial Assets

Note 4.1A Cash and Cash Equivalents

436

175,550

489

174,005

Note 4.1B Trade and Other Receivables

195,587

20,473

195,151

21,635

Subtotal

196,023

196,023

195,640

195,640

Note 7.2: Financial Instruments Note 7.2: Categories of Financial Instruments 30 9884 54 8494

Note 7.3: Administered - Financial Instruments Note 7.3A: Categories of Financial Instruments

436

175,550

489

174,005

NBA ANNUAL REPORT / 2016-17 120

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

1. DEPARTMENTAL FINANCIAL PERFORMANCE

2017 2016

NOTE 1.1: Expenses $’000 $’000

Note 1.1A: Employee Benefits

Wages and salaries 4 705 4 406

Superannuation:

Defined contribution plans 542 469

Defined benefit plans 338 368

Leave and other entitlements 1 010 1 214

Separation and redundancies - ( 230)

Other employee benefits 149 242

Total employee benefits 6 744 6 469

Accounting Policy:

Accounting policies for employee related expenses are contained in Note 6: People and Relationships.

Note 1.1B: Suppliers

Goods and services supplied and rendered

Consultants 70 173

Contractors 90 58

Travel 247 321

Legal 1 294

IT services 819 871

Other 559 732

Total goods and services supplied or rendered 1 786 2 449

Goods supplied 299 245

Services rendered 1 487 2 204

Total goods and services supplied or rendered 1 786 2 449

Other suppliers

Operating lease rentals 502 494

Workers compensation expenses 62 59

Total other suppliers 564 553

Total suppliers 2 350 3 002

Accounting Policy:

Leases

Leasing Commitments

The NBA in its capacity as lessee has entered the following non-cancellable lease:

2017 2016

$’000 $’000

Within 1 year 551 530

Between 1 to 5 years 2 565 2 899

More than 5 years - 42

Total operating lease commitments 3 116 3 471

This section analyses the financial performance of the NBA for the year ended 2017

An operating lease is a lease where the lessor effectively retains substantially all the risks and benefits of ownership. Operating lease

payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. Lease

incentives are recognised as other payables and amortised over the period of the lease on a straight line basis.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

The NBA has one current accommodation lease in the ACT. The lease commenced on 23 November 2012 for a period of 10 years

and is for the NBA's present accommodation in the ACT. Any increases in rent is at a rate commensurate with CPI.

PART 4 FINANCIAL MANAGEMENT 121

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

2017 2016

NOTE 1.2: Own-Source Income $’000 $’000

OWN-SOURCE REVENUE

Note 1.2A: Sale of Goods and Rendering of Services

Rendering of services 496 290

Total sale of goods and rendering of services 496 290

Accounting Policy:

Revenue

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) the probable economic benefits associated with the transaction will flow to the NBA.

Revenue from Government

GAINS

Note 1.2B: Reversal of Previous Asset Write-Downs

Accounting Policy:

Gains

Resources Received Free of Charge

Revenue from rendering of services and funding from State and Territory governments is recognised by reference to the stage of

completion of contracts at the reporting date. The revenue is recognised when:

The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of

total services to be performed.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance

account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no

longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and

Measurement.

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as

Revenue from Government when the NBA gains control of the appropriation, except for certain amounts that relate to activities that are

reciprocal in nature, in which case, revenue is recognised only when it has been earned. Appropriations receivable are recognised at their

nominal amounts.

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services

would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

NBA ANNUAL REPORT / 2016-17 122

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

2. DEPARTMENTAL FINANCIAL POSITION

2017 2016

NOTE 2.1: Financial Assets $’000 $’000

Note 2.1A: Cash and Cash Equivalents

Special Account - cash on hand or on deposit 30 54

Special Account - cash held in the OPA 9 854 8 440

Total cash and cash equivalents 9 884 8 494

Accounting Policy:

Cash

Note 2.1B: Trade and Other Receivables

Goods and Services receivables

Goods and services 100 82

Total goods and services receivables 100 82

Appropriations receivable:

For existing programs 640 574

Total appropriations receivable 640 574

Other receivables:

GST receivable from the Australian Taxation Office 25 39

Total other receivables 25 39

Total trade and other receivables (gross) 765 695

Receivables are expected to be recovered in:

No more than 12 months 765 695

Total trade and other receivables (net) 765 695

Credit terms for goods and services were within 30 days (2016: 30 days)

Accounting Policy:

Financial Assets

The NBA classifies its financial assets in the following categories:

a) loans and receivables.

Effective Interest method

Income is recognised on an effective interest rate basis.

Loans and receivables

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

This section analyses the NBA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Cash is recognised at its nominal amount. Cash and cash equivalents include (a) cash on hand, (b) demand deposits in bank accounts with

an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of

changes in value and (c) cash in special accounts.

Trade receivables are classified as ‘loans and receivables’ and recorded at face value less any impairment. Trade receivables are recognised where the NBA becomes party to a contract and has a legal right to receive cash.

Allowances are made when collectability of the debt is no longer probable. Trade receivables are derecognised on payment.

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the

relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of

the financial asset, or, where appropriate, a shorter period.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial

assets are recognised and derecognised upon trade date.

PART 4 FINANCIAL MANAGEMENT 123

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 2.2: Non-Financial Assets

Note 2.2: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

Computer

software

internally

developed

Computer

software

purchased

$'000 $'000 $'000 $'000 $'000

As at 1 July 2016

Gross book value 1 042 894 2 928 665 5 529

Accumulated depreciation, amortisation and impairment ( 248) ( 340) ( 2 793) ( 631) ( 4 012)

Net book value 1 July 2016 794 554 135 34 1 517

Additions:

By purchase - 105 - 9 114

Depreciation and amortisation ( 115) ( 178) ( 46) ( 15) ( 354)

53 48 101

Revaluations recognised in net cost of services - ( 10) ( 10)

Disposals:

Other - ( 22) - - ( 22)

Net book value 30 June 2017 732 497 89 27 1 345

Net book value as of 30 June 2017 represented by:

Gross book value 765 542 2 928 673 4 908

Accumulated depreciation, amortisation and impairment ( 33) ( 45) ( 2 839) ( 646) ( 3 563)

732 497 89 27 1 345

Revaluations of non-financial assets

A revaluation increment for leasehold improvements of $52,496.47 (2016: Nil) and an increment for property, plant and equipment of $48,383.98 (2016: Nil) were credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. Revaluation decrements for property, plant and equipment of $9,823.98 (2016: Nil) were recognised as an expense in the Statement of Comprehensive Income.

No indicators of impairment were found for leasehold improvements, property, plant and equipment, or other intangibles.

Revaluations recognised in other comprehensive income

All revaluations were conducted in accordance with the revaluation policy stated on the next page. On 31/03/17, an independent valuer conducted revaluations of leasehold improvements and property, plant and equipment.

No leasehold improvements, property, plant and equipment, or other intangibles are expected to be sold or disposed of within the next 12 months.

Other property,

plant and

equipment

Leasehold

improvements

Intangibles

Total

NBA ANNUAL REPORT / 2016-17 124

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Accounting Policy:

Acquisition of Assets

Property, Plant and Equipment

Asset Recognition Threshold

Asset class

Infrastructure, Plant and Equipment

Purchased Software

Leasehold improvements

Internally Developed Software

Revaluations

Fair values for each class of asset are determined as shown below.

Asset class

Leasehold improvements

Infrastructure, plant & equipment

Depreciation

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset class 2017 2016

Infrastructure, Plant and Equipment 3 to 7 years 3 to 7 years

Leasehold improvements Lease term Lease term

Impairment

Derecognition

Intangibles

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the NBA’s software are:

Type 2017 2016

Purchased software 3 years 3 years

Internally developed software 5 years 5 years

All software assets were assessed for indications of impairment at 30 June 2017.

Assets are recorded at cost on acquisition. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than the thresholds listed below for each class of asset, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the NBA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the NBA’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The most recent independent valuation was conducted by Australian Valuation Solutions on 31 March 2017.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that is previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Recognition Threshold

$2,000

$5,000

$10,000

$50,000

Fair value measured at

Depreciated replacement cost

Market selling price

The NBA’s intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NBA using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

All assets were assessed for impairment at 30 June 2017. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the NBA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected from its use or disposal.

PART 4 FINANCIAL MANAGEMENT 125

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

2017 2016

NOTE 2.3: Payables $’000 $’000

Note 2.3A: Suppliers

Trade creditors and accruals 384 397

Total suppliers 384 397

Settlement was usually made within 30 days.

Note 2.3B: Other Payables

Wages and salaries 63 17

Superannuation 7 3

Operating lease rentals and incentive 546 585

Total other payables 616 605

Accounting Policy:

Financial Liabilities

NOTE 2.4: Other Provisions

Provision for

restoration

Total

$’000 $’000

Carrying amount 1 July 2016 141 141

Unwinding of discount or change in discount rate 2 2

Closing balance 2017 143 143

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

The NBA currently has 1 agreement (2016: 1) for the leasing of premises which have provisions requiring the NBA to restore the premises to their original condition at the conclusion of the lease. The NBA has made a provision to reflect the present value of this obligation.

NBA ANNUAL REPORT / 2016-17 126

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

3. INCOME AND EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

2017 2016

NOTE 3.1: Administered - Expenses $’000 $’000

Note 3.1A: Employee Benefits

Wages and salaries 264 215

Superannuation:

Defined contribution plans 17 15

Defined benefit plans 34 24

Leave and other entitlements 27 12

Other employee benefits 3 3

345 269

Note 3.1B: Suppliers

Goods and services supplied or rendered

Purchases of blood and blood products 1 057 029 1 052 651

Consultants 1 345 1 800

Contractors 2 487 1 654

Travel 78 126

IT services 154 290

Other 172 294

1 061 265 1 056 815

1 057 161 1 052 847

4 104 3 968

1 061 265 1 056 815

Accounting Policy:

Suppliers

Note 3.1C: Grants

Accounting Policy:

Grants

The NBA administers grants on behalf of the Government. Grant liabilities are recognised to the extent that (i) the services required

to be performed by the grantee have been performed, or (ii) the grant eligibility criteria have been satisfied, but payments due have

not been made.

In 2015/16, the NBA administered only one grant for which the recipient was the Australian Red Cross Blood Service. Under the new

deed with the ARCBS from 1 July 2016, research payments are no longer classified as Grants.

This section analyses the activities that the NBA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

1

These salaries relate to a taskforce established to implement a program of work to improve governance and management of

immunoglobulin products funded and supplied under the National Blood Agreement.

Under the Deed of Agreement with the Australian Red Cross Blood Service (ARCBS), surpluses greater than $5 million in any particular

year are returned to the NBA in the following year. In 2016-17, $42m (2016: $28m) was returned by the ARCBS which related to the

2015-16 financial year. This return reduces supplier expenses in the current year.

Total employee benefits 1

Total goods and services supplied or rendered

Total goods and services supplied or rendered

Goods supplied

Services rendered

Research and Development Under the National Blood Agreement, the NBA is charged with facilitating and funding appropriate research, policy development or

other action in relation to new developments by relevant government or non-government persons or bodies. A nationally coordinated

effort in research and development is required to address evidence gaps in the blood sector, and to enable responses to emerging

evidence and new technologies. In September 2015, the NBA received approval from funding governments to implement a research

and development pilot to support projects and activities likely to produce valuable outcomes in identified key priority areas in

patient blood management and Immunoglobulin Governance. Expenditure to date for projects funded under the first round of the

research and development pilot, is included in this year’s financial statements.

PART 4 FINANCIAL MANAGEMENT 127

NOTE 3.2: Administered - Income

2017 2016

Non-Taxation Revenue $’000 $’000

Funding from Governments

Commonwealth contributions 658 361 648 651

State & Territory contributions 387 964 392 214

Total funding from governments 1 046 325 1 040 865

Accounting Policy:

Administered Revenue

b) the probable economic benefits associated with the transaction will flow to the NBA.

Revenue, (and thus impacting on the operating deficit), reflects timing differences as a result of the reconciliation of the National Supply Plan & Budget from the prior year. The reconciliation normally results in a return of surpluses to Jurisdictions, where actual usage is less than budgeted. Due to its complexity and dependency on external sources for information, the reconciliation cannot be completed prior to the finalisation of that year's financial statements, and is thus recorded in the following year.

All administered revenues are revenues relating to ordinary activities performed by the NBA on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Revenue from rendering of services and funding from State and Territory governments is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

a) the amount of revenue, stage of completion, and transaction costs incurred can be reliably measured; and

The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of total services to be performed.

NBA ANNUAL REPORT / 2016-17 128

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

4. ASSETS AND LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

2017 2016

NOTE 4.1: Administered - Financial Assets $’000 $’000

Note 4.1A: Cash and Cash Equivalents

Cash on hand or on deposit 436 489

Cash held in the OPA 175 114 173 516

Total cash and cash equivalents 175 550 174 005

Note 4.1B: Trade and Other Receivables

Goods and services receivables

Goods and services 11 946 13 061

Total goods and services receivables 11 946 13 061

Other receivables:

Interest 1 679 2 050

GST receivable from the Australian Taxation Office 6 848 6 524

Total other receivables 8 527 8 574

Total trade and other receivables (gross) 20 473 21 635

Total trade and other receivables (net) 20 473 21 635

Trade and other receivables are expected to be recovered in:

No more than 12 months 20 473 21 635

Total trade and other receivables (net) 20 473 21 635

Credit terms are within 30 days from date of invoice (2016: 30 days).

Accounting Policy:

Financial Assets

The NBA classifies its financial assets in the following categories:

a) held-to-maturity investments; and

b) loans and receivables.

Effective Interest Method

Income is recognised on an effective interest rate basis.

Held-to-Maturity Investments

Loans and receivables

Trade receivables are classified as ‘loans and receivables’ and recorded at face value less any impairment. Trade receivables are recognised where the NBA becomes party to a contract and has a legal right to receive cash.

Allowances are made when collectability of the debt is no longer probable. Trade receivables are derecognised on payment.

This section analyses assets used to conduct operations and the operating liabilities incurred as a result the NBA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial

assets are recognised and derecognised upon trade date.

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the

relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of

the financial asset, or, where appropriate, a shorter period.

Non derivative financial assets with fixed or determinable payments and fixed maturity dates that the NBA has the positive intent and ability

to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the

effective interest method less impairment, with revenue recognised on an effective yield basis.

Where loans and receivables are not subject to concessional treatments, they are carried at amortised cost using the effective interest

method. Gains and losses due to impairment, derecognition, and amortisation are recognised through profit and loss.

PART 4 FINANCIAL MANAGEMENT 129

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 4.1: Administered - Financial Assets 2017 2016

Note 4.1C: Other Investments $’000 $’000

Deposits 1 123 100 119 600

Total other investments 123 100 119 600

Accounting Policy:

National Managed Fund

2017 2016

NOTE 4.2: Administered - Non-Financial Assets $’000 $’000

Note 4.2A: Inventories

National Reserve inventory held for distribution 49 559 53 934

Other inventory held for distribution 45 566 50 842

Total inventories 95 125 104 776

Accounting Policy:

Inventories Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

a) raw materials and stores - purchase cost on a first-in-first-out basis; and

1

Monies invested in term deposits with various approved institutions under Section 58 of the Public Governance, Performance and Accountability Act 2013 , for the purposes of receiving passive investment income.

b) finished goods and work-in-progress - cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

During 2016-17, $919,857 of inventory held for distribution related to a net write-off of damaged and expired stock and was recognised as an expense (2016: $482,490). No items of inventory were recognised at fair value less cost to sell. All inventory is expected to be distributed in the next 12 months.

The National Managed Fund was established to manage the liability risks of the Australian Red Cross Blood Service in relation to the provision of blood and blood products. The NBA manages this fund on behalf of the Australian Government and States and Territories. To facilitate the transfer of the fund to the NBA, a special account under Section 78 of the Public Governance, Performance and Accountability Act 2013 was established, and this fund was transferred to the NBA for reporting.

The Fund came into effect on 1 July 2000 and to date no claims have been made against it. The balance of the fund as at 30 June 2017 is $124,433,044 (30 June 2016: $120,227,705), and is made up of a combination of cash ($250,082), investments ($123,100,000) and the balance of the special account ($1,082,962).

NBA ANNUAL REPORT / 2016-17 130

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 4.2: Administered - Non-Financial Assets

Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles (2016-17)

Computer

software

internally

developed

Computer

software

purchased

$’000 $’000 $’000 $’000

As at 1 July 2016

Gross book value 430 3 804 147 4 381

Accumulated depreciation, amortisation and impairment ( 242) ( 1 522) ( 147) ( 1 911)

Net book value 1 July 2016 188 2 282 - 2 470

Additions:

By purchase 20 - - 20

Internally developed - 1 557 - 1 557

7 - - 7

Depreciation and amortisation ( 112) ( 712) - ( 824)

Disposals Other - ( 126) - ( 126)

Net book value 30 June 2017 103 3 001 - 3 104

Net book value as of 30 June 2017 represented by:

Gross book value 117 5 235 147 5 499

Accumulated depreciation, amortisation and impairment ( 14) ( 2 234) ( 147) ( 2 395)

103 3 001 - 3 104

No indicators of impairment were found for property, plant and equipment and intangibles.

No property, plant or equipment or intangibles are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

2017 2016

NOTE 4.3: Administered - Payables $’000 $’000

Suppliers

Trade creditors and accruals 53 843 51 489

Total suppliers 53 843 51 489

Settlement was usually made within 30 days.

Note 4.2B: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

All revaluations were conducted in accordance with the revaluation policy stated at Note 2.2. On 31/03/17, an independent valuer conducted revaluations of leasehold improvements and property, plant and equipment.

Intangibles

Property, plant and

equipment

Total

Revaluations recognised in other comprehensive income

A revaluation increment for property, plant and equipment of $6,733.65 (2016: Nil) was credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position.

PART 4 FINANCIAL MANAGEMENT 131

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

5. FUNDING This section identifies the NBA’s funding structure.

NOTE 5.1: Appropriations

Annual

Appropriation 1

Adjustments to

appropriation 2

Total

Appropriation

Appropriation applied in

2017 (current and prior

years) Variance

$'000 $'000 $'000 $'000 $'000

DEPARTMENTAL

Ordinary annual services 5 640 296 5 936 5 639 297

Capital Budget 3 631 - 631 562 69

Total departmental 6 271 296 6 567 6 201 366

ADMINISTERED

Ordinary annual services

Administered items 5 190 n/a 5 190 5 190 -

Total administered 5 190 n/a 5 190 5 190 -

Annual

Appropriation 1

Adjustments to

appropriation 2

Total

appropriation

Appropriation applied in

2016 (current and prior

years) Variance

$'000 $'000 $'000 $'000 $'000

DEPARTMENTAL

Ordinary annual services 5 849 90 5 939 5 718 221

Capital Budget 3 63 - 63 145 ( 82)

Total departmental 5 912 90 6 002 5 863 139

ADMINISTERED

Ordinary annual services

Administered items 7 070 n/a 7 070 7 070 -

Total administered 7 070 n/a 7 070 7 070 -

2017 2016

$’000 $’000

DEPARTMENTAL

Cash 30 54

Appropriation Act (No.1) 2014-15 - 508

Appropriation Act (No.1) 2015-16 9 66

Appropriation Act (No.1) 2016-17 631 -

Total 670 628

5.1B: Unspent Annual Appropriations (Recoverable GST exclusive)

Annual Appropriations for 2016

5.1A: Annual Appropriations (Recoverable GST exclusive)

Annual Appropriations for 2017

(1) Appropriation Act (No.3) 2014-15 $0.300M was returned to the Consolidated Revenue Fund (CRF) as the Government decided not to proceed with the merger

of the National Blood Authority and the Australian Organ and Tissue Donation and Transplantation Authority. In addition, savings of $0.130M was returned to the

CRF, from Appropriation Act (No.1) 2015-16.

(3) Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are

not separately identified in the Appropriation Acts.

(1) Appropriation Act (No.1) 2016-17 $0.004M was withheld (Section 51 of the PGPA Act) for the purpose of Govlink contract. Govlink is to replace individual

Commonwealth entity contracts with a single coordinated procurement contract and is to be managed by Department of Finance.

(3) Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are

not separately identified in the Appropriation Acts.

(2) Adjustments to appropriation comprises Section 74 receipts.

(2) Adjustments to appropriation comprises Section 74 receipts.

NBA ANNUAL REPORT / 2016-17 132

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 5.2: Special Accounts

2017 2016 2017 2016 2017 2016

$’000 $’000 $’000 $’000 $’000 $’000

Balance brought forward from previous period 189 200 217 923 290 1 421 579 -

Increases 1 057 447 1 051 120 48 489 61 306 14 003 -

Total increases 1 057 447 1 051 120 48 489 61 306 14 003 -

Decreases:

Departmental 9 106 9 740 - - - -

Total departmental decreases 9 106 9 740 - - - -

Administered 1 045 763 1 070 103 48 200 62 437 13 500 -

Total administered decreases 1 045 763 1 070 103 48 200 62 437 13 500 -

Total decreases 1 054 869 1 079 843 48 200 62 437 13 500 -

Total balance carried forward to the next period 191 778 189 200 579 290 1 082 -

Balance represented by:

Cash held in entity bank accounts 214 203 - - - -

Cash held in the Official Public Account 191 564 188 997 - 290 1 082 -

Total balance carried forward to the next period 191 778 189 200 - 290 1 082 -

1 Appropriation: Public Governance, Performance and Accountability Act 2013 section 80

Establishing Instrument: National Blood Authority Act 2003

2 Appropriation: Public Governance, Performance and Accountability Act 2013 section 78

Establishing Instrument: Public Governance, Performance and Accountability Act 2013 section 78

3

4 Appropriation: Public Governance, Performance and Accountability Act 2013 section 78

Establishing Instrument: Public Governance, Performance and Accountability Act 2013 section 78

This amount represents the balance of the special account as at 31 March 2017. The special account was closed on this date due to the sunsetting of the determination

created to establish the special account. The closing balance was transferred to a new special account (NMF Blood and Blood Products Special Account 2017) established

under a new determination for the same purpose. As at 30 June 2017, the closing balance of the National Managed Fund (Blood and Blood Products) special account was

$0.

NMF Blood and Blood Products

Special Account 2017

4

Purpose: The National Blood Authority was established on 1 July 2003 with the principal role of managing the national blood arrangements, ensuring sufficient supply

and to provide a new focus on the safety and quality of blood and blood products. The funding for blood and blood products is funded from a special account established

under the National Blood Authority Act 2003 , section 40. The NBA's activities contributing to its outcome are classified as either departmental or administered.

Departmental activities involve the use of assets, liabilities, revenues and expenses controlled by the agency in its own right. Administered activities involve the

management or oversight by the NBA on behalf of the Government of items controlled or incurred by the Government.

Purpose: For the receipt of monies and payment of all expenditure related to the management of blood and blood products liability claims against the Australian Red

Cross Society (ARCS) in relation to the activities undertaken by the operating division of the ARCS known as the Australian Red Cross Blood Service.

Purpose: For the receipt of monies and payment of all expenditure related to the management of blood and blood products liability claims against the Australian Red

Cross Society (ARCS) in relation to the activities undertaken by the operating division of the ARCS known as the Australian Red Cross Blood Service.

The National Blood Account 1

National Managed Fund (Blood

and Blood Products) 2

3

PART 4 FINANCIAL MANAGEMENT 133

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

6. PEOPLE AND RELATIONSHIPS

2017 2016

NOTE 6.1: Employee Provisions $’000 $’000

Leave 1 892 1 714

Total employee provisions 1 892 1 714

Accounting Policy:

Employee Benefits:

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Leave

Separation and Redundancy

Superannuation

The liability for superannuation recognised as at 30 June represents outstanding contributions as at 30 June 2017.

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

NBA staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the

PSS Accumulation Plan (PSSap), the Australian Government Employee Superannuation Trust (AGEST) or other non-government

superannuation funds.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap, AGEST and the non-government

superannuation funds are defined contribution schemes.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the

Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The NBA makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The NBA accounts for the contributions as if they were contributions to

defined contribution plans.

Liabilities for ‘short term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefits (as defined in AASB 119 Employee Benefits) comprises of long service leave. The

measurement of the long service leave liability is detailed further under the Leave section.

The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made

for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the NBA is

estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the NBA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to FRR 24.1(b) the shorthand method. The estimate of the

present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Provision is made for separation and redundancy benefit payments. The entity recognises a provision for termination when it has

developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the

terminations.

NBA ANNUAL REPORT / 2016-17 134

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 6.2: Key Management Personnel Remuneration

2017 2016

$ $

Short-term employee benefits 465 846 384 720

Post-employment benefits 55 884 61 768

Other long-term benefits 53 261 37 280

Total key management personnel compensation expenses 1

574 991 483 769

NOTE 6.3: Related Party Disclosures

Related party relationships

Transactions with related parties

Giving consideration to relationships with related entities, and that transactions entered into during the reporting period by the NBA are within the normal course of business, it has been determined that there are no related party transactions to be separately disclosed.

The NBA is an Australian Government controlled entity. Related parties to the NBA are Portfolio Ministers, Key Management Personnel including the Chief Executive Officer and the Deputy General Manager and General Counsel, and other Australian Government entities.

Given the breadth of Governments activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans in general government departments.

1. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister, as these are not paid by the NBA.

The total number of key management personnel that are included in the above table are 2 (2016: 2).

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any directors of that entity.

The entity has determined key management personnel to be the Portfolio Minister, Chief Executive, and Deputy General Manager and General Counsel. Key management personnel remuneration is reported in the table below:

PART 4 FINANCIAL MANAGEMENT 135

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

7. MANAGING UNCERTAINTIES

NOTE 7.1: Contingent Assets and Liabilities

Note 7.1A: Contingent Assets and Liabilities

Quantifiable Contingencies

Unquantifiable Contingencies

Accounting Policy:

Contingent Liabilities and Contingent Assets

Note 7.1B: Administered - Contingent Assets and Liabilities 2017 2016

$’000 $’000

Contingent liabilities

Indemnities 190 367 210 793

Total contingent liabilities 190 367 210 793

Net administered contingent liabilities 190 367 210 793

Quantifiable Administered Contingencies

Unquantifiable Administered Contingencies

Accounting Policy:

Indemnities

Under certain conditions the Australian Government and the States/Territories jointly provide indemnity for the Australian Red Cross Blood Service (the Blood Service) through a cost sharing arrangement for claims, both current and potential, regarding personal injury and damage suffered by a recipient of certain blood products. The Australian Government’s share of any liability is limited to sixty three per cent of any agreed net cost.

The Deed of Agreement between the Australian Red Cross Society (the Red Cross) and the NBA in relation to the operation of the Blood Service includes certain indemnities and a limit of liability in favour of the Red Cross. These cover a defined set of potential business, product and employee risks and liabilities arising from the operations of the Blood Service. Certain indemnities for specific risk events operate within the term of the Deed of Agreement, are capped and must meet specified pre-conditions. Other indemnities and the limitation of liability only operate in the event of the expiry and non renewal, or the earlier termination of the Deed of Agreement relating to the operation of the Red Cross or the cessation of funding for the principal sites, and only within a certain scope. All indemnities are also subject to appropriate limitations and conditions including in relation to mitigation, contributory fault, and the process of handling relevant claims.

In the event of the occurrence of the contingent liability disclosed in the Quantifiable Administered Contingencies, the Commonwealth, or its nominee, would be assigned ownership of the Blood Service Melbourne Processing Centre building.

The Deed of Indemnity between the Red Cross and the NBA indemnifies the Red Cross in relation to the Sydney Processing Centre (SPC) and the Melbourne Processing Centre (MPC) funding arrangements. If the SPC or MPC funding arrangements cease in respect of an SPC or MPC contract for any reason, the NBA indemnifies the Red Cross in respect of the liability of the Red Cross to make payments of a Funded Obligation, to the extent that the payments become due and payable under the terms of the SPC or MPC contract after the date when the Red Cross no longer has sufficient SPC or MPC funding to meet the funded obligations as a result of the cessation of the SPC or MPC funding.

There were no quantifiable contingent assets or liabilities in this reporting period.

There were no unquantifiable contingent assets or liabilities in this reporting period.

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent liabilities are disclosed when settlement is greater than remote.

The maximum amounts payable under the indemnities given is disclosed above. At the time of completion of the financial statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.

This section analyses how the NBA manages financial risks within its operating environment.

NBA ANNUAL REPORT / 2016-17 136

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 7.2: Financial Instruments

NOTE 7.2: Categories of Financial Instruments 2017 2016

Financial Assets $’000 $’000

Loans and receivables:

Cash and cash equivalents 9 884 8 494

Trade and other receivables 100 82

Carrying amount of financial assets 9 984 8 576

Financial Liabilities

At amortised cost:

Trade and other creditors 384 397

Carrying amount of financial liabilities 384 397

NOTE 7.3: Administered - Financial Instruments

NOTE 7.3A: Categories of Financial Instruments 2017 2016

Financial assets $’000 $’000

Held-to-maturity investments:

Deposits 123 100 119 600

Total held to maturity investments: 123 100 119 600

Loans and receivables:

Cash and cash equivalents 175 550 174 005

Trade and other receivables 20 473 21 635

Total loans and receivables: 196 023 195 640

Total financial assets 319 123 315 240

Financial Liabilities

Financial liabilities measured at amortised cost:

Trade and other creditors 53 843 51 489

Total financial liabilities 53 843 51 489

Note 7.3B: Net Gains or Losses on Financial Assets

Held-to-maturity investments

Interest Revenue 3 833 4 408

Net gain on held-to-maturity investments 3 833 4 408

Loans and receivables

Interest Revenue 1 3

Net gain on loans and receivables 1 3

Net gain on financial assets 3 834 4 411

Accounting Policy:

Loans and receivables

The net fair values of the financial assets and liabilities are at their carrying amounts. The NBA derived no interest income from financial assets in either the current and prior year.

Where loans and receivables are not subject to concessional treatments, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition, and amortisation are recognised through profit and loss.

Trade receivables are classified as ‘loans and receivables’ and recorded at face value less any impairment. Trade receivables are recognised where the NBA becomes party to a contract and has a legal right to receive cash.

Allowances are made when collectability of the debt is no longer probable. Trade receivables are derecognised on payment.

PART 4 FINANCIAL MANAGEMENT 137

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 7.4 Fair Value Measurement

Accounting Policy:

Fair Value Measurement

2017 2016

$'000 $'000

Non-financial assets

Leasehold Improvements 732 794

Plant and Equipment 497 554

NOTE 7.5 Administered - Fair Value Measurement

2017 2016

$'000 $'000

Non-financial assets

Plant and Equipment 103 188

Fair value measurements at the end

of the reporting period

An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Comprehensive valuations are carried out at least once every three years in compliance with AASB 13 requirements. The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows: Physical Depreciation and Obsolescence - Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the Depreciated Replacement Cost approach. Under the Depreciated Replacement Cost approach the estimated cost to replace the asset is calculated and then adjusted to take into physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration. For all Leasehold Improvement assets, the consumed economic benefit / asset obsolescence deduction is determined based on the term of the associated lease.

Fair value measurements at the end

of the reporting period

NBA ANNUAL REPORT / 2016-17 138

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

NOTE 8.1: BUDGETARY REPORTS AND EXPLANATIONS OF MAJOR VARIANCES

Note 8.1A: Departmental Budgetary Reports

Statement of Comprehensive Income for the NBA

for the year ended 30 June 2017

Actual ¹ Budget ¹ Variance ²

2017 2017 2017

NET COST OF SERVICES $’000 $’000 $’000

Expenses

Employee benefits 6 744 6 680 64

Suppliers 2 350 2 719 ( 369)

Grants - Non-profit organisations 140 - 140

Depreciation and amortisation 354 365 ( 11)

Finance costs - Unwinding of discount 2 6 ( 4)

Write-Down and Impairment of Assets - Revaluation decrements 10 - 10

Losses from asset sales 15 - 15

Total expenses 9 615 9 770 ( 155)

Own-Source Income

Own-source revenue

Sale of goods and rendering of services 496 - 496

Other revenue - Funding from State and Territory governments 3 799 3 671 128

Total own-source revenue 4 295 3 671 624

Gains

Resources received free of charge - Remuneration of auditors 81 94 ( 13)

Total gains 81 94 ( 13)

Total own-source income 4 376 3 765 611

Net cost of services 5 239 6 005 ( 766)

Revenue from Government - Departmental annual appropriations 5 636 5 640 ( 4)

Surplus (Deficit) attributable to the Australian Government 397 ( 365) 762

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus 101 - 101

Total other comprehensive income 101 - 101

Total comprehensive income/(loss) attributable to the Australian Government 498 ( 365) 863

2. Explanations of major variances are provided in Note 8.1B.

1. The budget figure represents the NBA's original budgeted financial statements that were first presented to parliament in respect of the reporting period (i.e. from the NBA's 2016-17 Portfolio Budget Statements (PBS)).

The following tables provide a comparison of the original budget as presented in the 2016-17 Portfolio Budget Statements (PBS) to the 2016-17 final outcome as presented in accordance with Australian Accounting Standards for the NBA. The Budget is not audited.

PART 4 FINANCIAL MANAGEMENT 139

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Statement of Financial Position for the NBA

as at 30 June 2017

Actual ¹ Budget ¹ Variance ²

2017 2017 2017

ASSETS $’000 $’000 $’000

Financial Assets

Cash and cash equivalents 9 884 21 9 863

Trade and other receivables 765 9 026 (8 261)

Total financial assets 10 649 9 047 1 602

Non-Financial Assets

Leasehold improvements 732 806 ( 74)

Property, plant and equipment 497 696 ( 199)

Intangibles 116 222 ( 106)

Prepayments 168 220 ( 52)

Total non-financial assets 1 513 1 944 ( 431)

Total assets 12 162 10 991 1 171

LIABILITIES Payables

Suppliers 384 618 ( 234)

Other payables 616 560 56

Total payables 1 000 1 178 ( 178)

Provisions

Employee provisions 1 892 1 506 386

Other provisions 143 153 ( 10)

Total provisions 2 035 1 659 376

Total liabilities 3 035 2 837 198

Net assets 9 127 8 154 973

EQUITY

Contributed equity 3 944 3 944 -

Reserves 460 359 101

Retained surplus 4 723 3 851 872

Total equity 9 127 8 154 973

1. The budget figure represents the NBA's original budgeted financial statements that were first presented to parliament in respect of the reporting period (i.e. from the NBA's 2016-17 Portfolio Budget Statements (PBS)).

2. Explanations of major variances are provided in Note 8.1B.

NBA ANNUAL REPORT / 2016-17 140

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017 Statement of Changes in Equity for the NBA for the year ended 30 June 2017

Actual

Budget ¹ Variance ² Actual Budget ¹ Variance ² Actual Budget ¹ Variance ² Actual Budget ¹ Variance ²

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance

Balance carried forward from previous period

4 326 4 216 110 359 359 - 3 313 3 313 - 7 998 7 888 110

Adjusted opening balance

4 326 4 216 110 359 359 - 3 313 3 313 - 7 998 7 888 110

Comprehensive Income

Other comprehensive income

- - - 101 - 101 - - - 101 - 101

Surplus / (Deficit) for the period

397 ( 365) 762 - - - - - - 397 ( 365) 762

Total comprehensive income

397 ( 365) 762 101 - 101 - - - 498 ( 365) 863

Transactions with owners

Distributions to owners

Returns of capital - Restructuring

- - - - - - - - - - - -

Contributions by owners

Departmental capital budget

- - - - - - 631 631 - 631 631 -

Total transactions with owners

- - - - - - 631 631 - 631 631 -

Closing balance as at 30 June

4 723 3 851 872 460 359 101 3 944 3 944 - 9 127 8 154 973

1. The budget figure represents the NBA's original budgeted financial statements that were first presented to parliament in respect of the reporting period (i.e. from the NBA's 2016-17 Portfolio Budget Statements (PBS)). 2. Explanations of major variances are provided in Note 8.1B.

Retained earnings

Asset revaluation

surplus

Contributed equity/capital

Total equity

PART 4 FINANCIAL MANAGEMENT 141

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Cash Flow Statement for the NBA

for the year ended 30 June 2017

Actual ¹ Budget ¹ Variance ²

2017 2017 2017

OPERATING ACTIVITIES $’000 $’000 $’000

Cash received

Appropriations 5 639 5 640 ( 1)

Sales of goods and rendering of services 4 300 3 671 629

Net GST received 228 226 2

Cash transferred from the Official Public Account - ( 132) 132

Total cash received 10 167 9 405 762

Cash used

Employees 6 517 6 680 ( 163)

Suppliers 2 716 2 725 ( 9)

Total cash used 9 233 9 405 ( 172)

Net cash from/(used by) operating activities 934 - 934

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 8 - 8

Total cash received 8 - 8

Cash used

Purchase of property, plant and equipment 105 631 ( 526)

Purchase of intangibles 9 - 9

Total cash used 114 631 ( 517)

Net cash (used by) investing activities ( 106) ( 631) 525

FINANCING ACTIVITIES

Cash received

Contributed equity - Departmental capital budget 562 631 ( 69)

Total cash received 562 631 ( 69)

Net cash from financing activities 562 631 ( 69)

Net increase / (decrease) in cash held 1 390 - 1 390

Cash and cash equivalents at the beginning of the reporting period 8 494 21 8 473

Cash and cash equivalents at the end of the reporting period 9 884 21 9 863

1. The budget figure represents the NBA's original budgeted financial statements that were first presented to parliament in respect of the reporting period (i.e. from the NBA's 2016-17 Portfolio Budget Statements (PBS)).

2. Explanations of major variances are provided in Note 8.1B.

NBA ANNUAL REPORT / 2016-17 142

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Note 8.1B: Departmental Major Budget Variances for 2017

Statement of Comprehensive Income Suppliers This variance is as a result of a delay in undertaking budgeted Suppliers (Statement of Comprehensive Income) procurements. (Statement of Financial Position)

Rendering of Services This variance resulted from unbudgeted additional funds from the Sale of goods and rendering of services (Statement of Department of Health - Queensland $0.200m and transfer of staff leave Comprehensive Income) (Cash Flow Statement) entitlements $0.158m from other Commonwealth agencies .

Statement of Financial Position Cash and cash equivalents This variance is primarily as a result of reclassifying Special Account - Cash and cash equivalents, Trade and other receivables cash held in the OPA from Trade and other receivables to Cash and (Statement of Financial Position) cash equivalents in the financial statements. Refer 'New Accounting Policy Adopted' section in the Overview Note.

Trade and other receivables This variance is primarily as a result of reclassifying Special Account - Trade and other receivables, Cash and cash equivalents cash held in the OPA from Trade and other receivables to Cash and (Statement of Financial Position) cash equivalents in the financial statements. Refer 'New Accounting Policy Adopted' section in the Overview Note.

Employee provisions

Reserves The variance is as a result of a revaluation in 2016-17 of non-financial Reserves (Statement of Financial Position)

Cash Flow Statement Purchase of property, plant and equipment Purchase of property, plant and equipment (Cash Flow

This variance is as a result of a delay in undertaking budgeted Statement) Non-Financial Assets (Statement of Financial capital expenditure. Position)

assets as part of fair value measurement requirements. (Statement of Changes in Equity)

Explanations of major variances Affected line items (and statement)

This variance is as a result of the transfer in of leave entitlements for staff joining the NBA from other Commonwealth agencies. Employee provisions (Statement of Financial Position), Rendering of services (Statement of Comprehensive

Income)

PART 4 FINANCIAL MANAGEMENT 143

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Note 8.1C: Administered Budgetary Reports

Administered Schedule of Comprehensive Income for the NBA

for the year ended 30 June 2017

Actual Budget ¹ Variance ²

2017 2017 2017

NET COST OF SERVICES $’000 $’000 $’000

Expenses

Employee Benefits 345 323 22

Suppliers 1 061 265 1 126 179 ( 64 914)

Grants - Non-profit organisations 401 8 830 ( 8 429)

Depreciation and amortisation 824 445 379

Total expenses 1 062 835 1 135 777 ( 72 942)

Income

Revenue

Non-taxation revenue

Funding from governments 1 046 325 1 140 364 ( 94 039)

Interest - Deposits 3 834 - 3 834

Total non-taxation revenue 1 050 159 1 140 364 ( 90 205)

Total revenue 1 050 159 1 140 364 ( 90 205)

Net (cost of) / contribution by services ( 12 676) 4 587 ( 17 263)

Surplus/(Deficit) ( 12 676) 4 587 ( 17 263)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus 7 - 7

Total other comprehensive income 7 - 7

Total comprehensive income ( 12 669) 4 587 ( 17 256)

1. The budget figure represents the NBA's original budgeted financial statements that were first presented to parliament in respect of the reporting period (i.e. from the NBA's 2016-17 Portfolio Budget Statements (PBS)).

2. Explanations of major variances are provided in Note 8.1D.

NBA ANNUAL REPORT / 2016-17 144

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Administered Schedule of Assets and Liabilities for the NBA

as at 30 June 2017

Actual Budget ¹ Variance ²

2017 2017 2017

ASSETS $’000 $’000 $’000

Financial assets

Cash and cash equivalents 175 550 336 175 214

Trade and other receivables 20 473 6 997 13 476

Other investments 123 100 124 253 ( 1 153)

Total financial assets 319 123 131 586 187 537

Non-financial assets

Inventories 95 125 111 637 ( 16 512)

Property, plant and equipment 103 588 ( 485)

Intangibles 3 001 354 2 647

Prepayments 76 064 76 071 ( 7)

Total non-financial assets 174 293 188 650 ( 14 357)

Total assets administered on behalf of Government 493 416 320 236 173 180

LIABILITIES Payables

Suppliers 53 843 63 562 ( 9 719)

Total payables 53 843 63 562 ( 9 719)

Total liabilities administered on behalf of Government 53 843 63 562 ( 9 719)

Net assets 439 573 256 674 182 899

1. The budget figure represents the NBA's original budgeted financial statements that were first presented to parliament in respect of the reporting period (i.e. from the NBA's 2016-17 Portfolio Budget Statements (PBS)).

2. Explanations of major variances are provided in Note 8.1D.

PART 4 FINANCIAL MANAGEMENT 145

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2017

Note 8.1D: Administered Major Budget Variances for 2017

Administered Schedule of Comprehensive Income Suppliers

Funding from governments

Administered Schedule of Assets and Liabilities Cash and cash equivalents

Inventories

Intangibles

Suppliers

- cash held in the OPA as Cash and cash equivalents. The 2016-17 Portfolio Budget Statements does not disclose Special Account - cash held in the OPA in their statements.

This variance relates to the capitalisation of "BloodSTAR" (Blood System for Tracking Authorisations and Reviews), a new ICT system. Intangibles (Administered Schedule of Assets and Liabilities)

Refer change in accounting policies in Note 1 Overview Notes.

Trade and other receivables This variance is as a result of timing of payments at year end. Trade and other receivables (Administered Schedule of Assets and Liabilities)

This variance was caused by two main factors: a decrease in inventories held for distribution and a reduction in the plasma unit costs as a result of increased collection volumes.

Inventories (Administered Schedule of Assets and Liabilities) Suppliers (Administered Schedule of Comprehensive Income)

Explanations of major variances Affected line items (and statement)

END OF FINANCIAL STATEMENTS

This variance is as a result of a decrease in Suppliers and timing of payments at year end. Suppliers (Administered Schedule of Assets and Liabilities)

This variance is as a result of a range of factors including: - the return by the Blood Service of $42.23m as a result of efficiencies associated with the 2015-16 Output Based Funding Model; - the impact of reduced contract prices as a result of new tenders in 2015-16 for imported blood products; - a continuation of a reduction in the demand for fresh blood products as a result of improved appropriate use and reduced wastage; - and an over estimation of budgeted supplier costs.

Suppliers (Administered Schedule of Comprehensive Income), Deficit/Surplus (Administered Schedule of Comprehensive Income)

Grants - Non profit organisations Under the new deed of agreement with the Blood Service, payments previously Grants - non profit organisations, Suppliers

(Administered Schedule of Comprehensive Income)

previously classified as grants are now classified under suppliers.

The variance predominantly relates to two factors: - the return of $80.46m to the Commonwealth, and State and Territory Governments for the 2015-16 end of year reconciliation as part of the National Blood Agreement; and - the remaining balance being the mid year review reduction for the 2016-17 National Supply Plan and Budget.

Funding from governments (Administered Schedule of Comprehensive Income), Deficit/Surplus (Administered Schedule of Comprehensive Income)

This variance is primarily as a result of classifying Special Account Trade and other receivables (Administered Schedule of Assets and Liabilities)

NBA ANNUAL REPORT / 2016-17 146

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PART 4 FINANCIAL MANAGEMENT 147

5 PART

APPENDIX 1. COMMITTEE AND BOARD MEMBER PROFILES

APPENDIX 2. FRESH BLOOD COMPONENTS SUPPLIED UNDER CONTRACT BY THE BLOOD SERVICE IN 2016-17

APPENDIX 3. PLASMA AND RECOMBINANT PRODUCTS SUPPLIED UNDER CONTRACT IN 2016-17

APPENDIX 4. MANDATORY REPORTING

APPENDIX 5. LIST OF REQUIREMENTS

APPENDIX 6. ACRONYMS AND ABBREVIATIONS

INDEX

APPENDICES

PART 5

APPENDIX 1. COMMITTEE AND BOARD MEMBER PROFILES

NBA Board Members (left to right) Chris Brook PSM, Gayle Ginnane (Chair), Alison Street AO, Patti Warn, Paul Bedbrook and Lyn Beazley AO. Inset: Mark Cormack.

NBA ANNUAL REPORT / 2016-17 150

NBA Board Continuing Members

Ms Gayle Ginnane — chair Ms Gayle Ginnane was CEO of the Private Health Insurance Administration Council, a government agency reporting to the Minister for Health and Ageing, with financial and regulatory responsibility for the private health insurance industry until May 2008 and has broad experience as a senior manager in an insurance and regulatory environment, and an in depth understanding of governance, risk management and finance.

Ms Ginnane has considerable experience as an independent director on a number of boards, both commercial and not for profit, in the voluntary, government and private sectors. As well as Chair of the NBA Board, Ms Ginnane is a councillor on the Australian Pharmacy Council and a director of Police Health. She has also contributed to a number of voluntary organisations at senior and Board levels including Scouts ACT, the Arthur Shakespeare Foundation for Scouting and the Community Living Project.

Ms Ginnane is a member of the Institute of Public Administration, a fellow of the Australian Institute of Company Directors and an affiliate member of the Institute of Actuaries of Australia.

Ms Ginnane was re-appointed Chair of the NBA Board in January 2017.

Mr Paul Bedbrook — financial expert Mr Paul Bedbrook has had a connection with blood issues via his personal involvement with haemophilia for over two decades. He is the father of two adult sons with haemophilia. For much of this time Mr Bedbrook has been involved with the Haemophilia Foundation NSW (HFNSW) and the Haemophilia Foundation Australia (HFA). Mr Bedbrook is a past President of HFNSW and past Treasurer of HFA. He brings his personal experiences with blood issues to the Board as well as feedback from a community of individuals who rely on the blood and plasma products distributed to Australia’s health services under the auspices of the NBA.

Professionally, Mr Bedbrook has had over 30 years of experience in financial services. His current roles include: Chairman of Zurich Financial Services Australia Ltd, Independent non-executive Director of Credit Union Australia (CUA) Ltd and Independent Chairman of ASX listed Elanor Investors Group.

Mr Bedbrook was a senior executive for over 20 years with the Dutch global banking, insurance and investment group, ING. Mr Bedbrook’s early career was as an Investment Analyst and Investment Portfolio Manager at ING, and between 1987 and 1995, he was the General Manager Investments and Chief Investment Officer for the Mercantile Mutual (ING) Group in Sydney. In the decade to 2010, Mr Bedbrook was President and CEO of INGDIRECT Canada, CEO and Director of ING Australia and Regional CEO of ING Asia Pacific based in Hong Kong.

Mr Bedbrook has been a member of the NBA Board since May 2011 and was appointed to his current Board role as financial expert in August 2013. Mr Bedbrook is also a member of the NBA Audit Committee.

PART 5 APPENDICES 151

Adjunct Professor Chris Brook PSM — state and territory representative (large jurisdiction) Professor Chris Brook was a senior executive in Victorian Health for 30 years, fulfilling both professional (Chief Medical Officer and Director, Public Health) and management roles (Regional Director; Director Acute Health; Director Rural Health and Aged Care; and Executive Director Wellbeing, Integrated Care and Ageing).

Professor Brook has been part of blood and blood policy since 1988 and a national champion since the 1990s, including the several transformations in that time. He is especially proud of how treatment for people with haemophilia has utterly transformed in his time.

Professor Brook was re-appointed to the Board in January 2017.

Mr Mark Cormack — Australian Government representative Mr Mark Cormack is responsible for strategic national health policy, portfolio strategies and international engagement at the Department of Health. His national program responsibilities include primary health, mental health, public hospital funding agreements and dental.

Mr Cormack has worked in and for the public healthcare sector for over 30 years in various capacities as a health professional, senior manager, policy maker, planner, agency head and industry advocate. He has a Bachelor of Applied Science (University of Sydney) and Master of Health Management (University of Wollongong).

Mr Cormack has had a number of senior roles in the public healthcare system, including Member of the Australian Health Ministers’ Advisory Council (AHMAC), Chair of the AHMAC Health Policy Priorities Principal Committee and Board Director of National E-Health Transition Authority.

Prior to joining the Department of Health in February 2015, Mr Cormack was a Deputy Secretary in the then Department of Immigration and Border Protection (DIBP) responsible for managing and resolving the immigration status of people who do not have legal authority to be in Australia or who are in breach of their visa conditions. His group was also responsible for the onshore detention network, community detention, bridging visa program, and the Department’s compliance and removals functions. In addition, he worked with other countries to implement offshore processing and refugee settlement. Mr Cormack was the Department’s senior executive responsible for implementation of Operation Sovereign Borders.

Mr Cormack was appointed the first Chief Executive Officer of Health Workforce Australia (HWA) in January 2010. HWA was a Commonwealth Statutory Authority, established by the Council of Australian Governments which planned, funded, researched and delivered programs to enhance and develop Australia’s health workforce.

From July 2006 to January 2010 Mr Cormack was Chief Executive of ACT Health.

Mr Cormack was re-appointed to the NBA Board in January 2017.

NBA ANNUAL REPORT / 2016-17 152 152

Ms Patricia (Patti) Warn — community representative Trained originally as a secondary school teacher in Tasmania, Ms Warn was a social and political researcher for the ABC’s Four Corners program in Sydney for several years before becoming a Ministerial Advisor in Canberra across social security, health, community services and immigration. Ms Warn organised national community consultations to inform policy development in reforming disability services, women’s health, HIV/AIDS, Creutzfeldt-Jakob disease awareness and aged care.

Ms Warn was a member of the Commonwealth Immigration Review Tribunal for five years. In retirement Ms Warn was appointed to the NSW Ministerial Advisory Committee on Ageing and became an official visitor to mental health facilities under the NSW Mental Health Act. She served for seven years as a Board member of Uniting Care Ageing’s Sydney region.

Ms Warn has been a lay member of the NSW Law Society’s Professional Conduct Committee for over a decade and has represented consumer interests on committees of the Australian Commission on Safety and Quality in Health Care, Health Workforce Australia, the Australian Council on Health Care Standards and the Australian Health Practitioner Regulation Agency. She is on the Board of the Seniors Rights Service in Sydney.

Ms Warn’s personal commitment to the NBA stems from her mother’s life being saved by blood transfusions following a postpartum haemorrhage.

Ms Warn was appointed to the NBA Board as the community representative in August 2013.

PART 5 APPENDICES 153

New Members

Professor Lyn Beazley AO - state and territory representative (small jurisdiction) After graduating from Oxford and Edinburgh Universities, Professor Lyn Beazley built an internationally renowned research team in neuroscience that focussed on recovery from brain damage, with much of her investigations undertaken as Winthrop Professor at the University of Western Australia. Currently Professor Beazley is Sir Walter Murdoch Distinguished Professor of Science at Murdoch University.

Professor Beazley was the Chief Scientist of Western Australia from 2006 to 2013, advising the WA Government on science, innovation and technology, as well as acting as an Ambassador for science locally, nationally and internationally. Professor Beazley chairs several boards including the Terrestrial Ecosystems Research Network and serves on others including the WA State Government’s Technology and Industry Advisory Council, the Royal Institution Australia and the Western Australian Art Gallery Foundation. Professor Beazley was a Trustee of the Western Australian Museum from 1999 to 2006 and currently is Patron of the Friends of the Museum.

In 2009 Professor Beazley was awarded Officer of the Order of Australia and elected a Fellow of the Australian Academy of Technological Sciences and Engineering. In 2011 Professor Beazley was inducted into the inaugural Western Australian Women’s Hall of Fame and was elected a Fellow of the Australian College of Educators and a Companion of Engineers Australia. Professor Beazley has worked to promote science, technology, engineering and mathematics to the community, especially to young people. In 2015 she was inducted into the Western Australian Science Hall of Fame and was also announced the 2015 WA Australian of the Year.

Professor Beazley was appointed to the NBA Board in January 2017.

NBA ANNUAL REPORT / 2016-17 154

Associate Professor Alison Street AO - public health expert Professor Alison Street graduated in 1971 from Monash University with first class honours in medicine.

After completing postgraduate training in clinical and laboratory haematology in Melbourne and Sydney, Professor Street spent three years in clinical research in Boston. Professor Street returned to Melbourne to work with Monash University and Alfred Health in 1984, where she retired from the positions of Head of Laboratory Haematology and Haemostasis-Thrombosis (including Haemophilia) in 2012.

Professor Street’s main professional interests were in haemostasis-thrombosis, transfusion medicine and teaching. During her tenure at Alfred Health, Professor Street was Chief Examiner in haematology for the Royal College of Pathologists of Australasia between 2001 and 2006, and President of the Haematology Society of Australia and New Zealand between 1996 and 1998.

Professor Street was a Board member with the World Federation of Hemophilia (WFH) between 2002 and 2012 (Vice-President Medical between 2008 and 2012) and a Board member of the Australian Red Cross Blood Service (the Blood Service) between 1998 and 2004.

Professor Street’s other appointments are:

• Clinical Adjunct Associate Professor in the Department of Immunology and Pathology, Monash University

• Chair of the NBA Haemovigilance Advisory Committee, and

• Member of the Steering Committee for the Asia-Pacific Haemophilia Working Group.

Professor Street received the Award of Officer in the Order of Australia in 2006 for services to haematology and the community of people with congenital bleeding disorders, and is an honorary life member of the Haematology Society of Australia and New Zealand, Australian Society of Thrombosis and Haemostasis and the Australian and New Zealand Society of Blood Transfusion.

Professor Street was appointed to the NBA Board in January 2017.

PART 5 APPENDICES 155

Audit Committee Chair

Mr Ken Barker Until 2009 Mr Barker had some 42 years of experience in the New South Wales Government. He worked for New South Wales Health for 24 years where his last appointment was as Chief Financial Officer. He is now director of his own company, which specialises in financial management and provision of strategic advice, mainly to government agencies. He is also a member of a number of state government governance boards and of several New South Wales agency audit and risk committees.

Mr Barker has worked with the former New South Wales Blood Transfusion Service, and has made important contributions to many of the key decisions and events that have shaped the current Australian blood sector: the establishment of the Australian Red Cross Blood Service and the NBA; provision of national indemnity arrangements for blood and blood products; the Stephen Review of the Australian Blood Banking and Plasma Product Sector; and the 2008 KPMG business study of the Blood Service.

Mr Barker was appointed to the NBA Interim Board and has served as a full Board member since the inception of the NBA. He was reappointed in May 2011 and his term extended until August 2013. He served as Chair of the NBA Audit Committee between 2003 and 2007 and continued to serve as an Audit Committee member, until his appointment as Chair in October 2013.

NBA ANNUAL REPORT / 2016-17 156

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PART 5 APPENDICES 157

APPENDIX 2. FRESH BLOOD COMPONENTS SUPPLIED UNDER CONTRACT BY THE BLOOD SERVICE IN 2016-17

NBA ANNUAL REPORT / 2016-17 158

TABLE 5.1 Fresh blood components supplied under contract by the Blood Service, 2016-17

Product Type Name Presentation JBC Price

Red blood cells Whole blood (WB)

red cells leucodepleted

>200ml1 $401.94

WB paediatric red cells leucodepleted (set of 4) 25-100ml1 $420.67

WB washed red cells leucodepleted >130ml1 $405.90

Platelets WB platelet pool leucodepleted >160ml1 $277.88

Apheresis platelet leucodepleted 100-400ml1 $619.31

Paediatric apheresis platelet leucodepleted (set of 4) 40-60ml1 $797.55

Clinical fresh frozen plasma (FFP) WB clinical FFP 295ml+/-10%1 $176.12

WB paediatric clinical FFP (set of 4) 60-80ml1 $208.54

Apheresis clinical FFP 295ml +/-10%1 $262.48

Cryoprecipitate WB cryoprecipitate 30-40ml1 $155.09

Apheresis cryoprecipitate 54-66ml1 $325.58

Cryo-depleted plasma WB cryo-depleted plasma 215-265ml1 $139.86

Apheresis cryo-depleted plasma 495-605ml1 $320.25

Other products Autologous donation NA $401.94

Directed donation complying with AHMAC guidelines NA $401.94

Serum eye drops Single Collection $914.98

Plasma for Fractionation

Plasma for Fractionation2 Presentation

size NA, but costed per kg

$362.43

1 The presentation volume for a typical unit content is specified in the Australian Red Cross Blood Service Blood Component Information, 2012. URL: http://resources.transfusion.com.au/cdm/ref/collection/p16691coll1/id/18

2

Plasma for Fractionation is supplied to CSL Behring (Australia) Pty Ltd for manufacturing plasma derived products

PART 5 APPENDICES 159

APPENDIX 3. PLASMA AND RECOMBINANT PRODUCTS SUPPLIED UNDER CONTRACT IN 2016-17

TABLE 5.2 Plasma and recombinant products supplied under contract, 2016-17

Product Type Name Presentation Supplier Price

Albumin (plasma derived - domestic) Albumex 20% 10ml CSL Behring (Australia)

Pty Ltd

$15.331

20% 100ml $66.881

4% 50ml $15.331

4% 500ml $66.881

Factor VIIa (recombinant - imported) NovoSeven 1mg Novo Nordisk

Pharmaceuticals Pty Ltd $1,299.75

2mg $2,599.49

5mg $6,498.72

8mg $10,397.97

Factor VIII Anti-Inhibitor (plasma derived - imported) FEIBA 500 IU Baxalta Australia

Pty Ltd

$1,200.00

1000 IU $2,400.00

2500IU $6,000.00

Factor VIII (plasma derived - domestic) Biostate 250 IU CSL Behring (Australia)

Pty Ltd

$215.771

500 IU $431.54

1000 IU $863.081

NBA ANNUAL REPORT / 2016-17 160

Product Type Name Presentation Supplier Price

Factor VIII (recombinant - imported) Advate 250 IU Baxalta Australia Pty

Ltd

$75.00

500 IU $150.00

1000 IU $300.00

1500 IU $450.00

2000 IU $600.00

3000 IU $900.00

Factor VIII (recombinant - imported) Xyntha 250 IU Pfizer Australia Pty Ltd $102.50

500 IU $205.00

1000 IU $410.00

2000 IU $820.00

3000 IU $1,230.00

Factor IX (plasma derived - domestic)

MonoFIX 1000 IU CSL Behring (Australia)

Pty Ltd

$863.081

Factor IX (recombinant - imported) BeneFIX 250 IU Pfizer Australia Pty Ltd $240.00

500 IU $480.00

1000 IU $960.00

2000 IU $1,920.00

3000 IU $2,880.00

Factor IX (recombinant - imported) Rixubis 250 IU Baxalta Australia

Pty Ltd

$196.50

500 IU $393.00

1000 IU $786.00

2000 IU $1,572.00

3000 IU $2,358.00

Factor XI (plasma derived - imported) Factor XI 1 IU CSL Behring (Australia)

Pty Ltd

$12.11

Factor XIII (plasma derived - imported) Fibrogammin 250 IU CSL Behring (Australia)

Pty Ltd

$153.68

1250 IU $768.46

Human prothrombin complex (plasma derived - domestic)

Prothrombinex 500 IU CSL Behring (Australia)

Pty Ltd

$275.111

Fibrinogen Concentrate (plasma derived - imported) RiaSTAP 1g CSL Behring (Australia)

Pty Ltd

$755.31

PART 5 APPENDICES 161

Product Type Name Presentation Supplier Price

Human C1 esterase inhibitor concentrate (plasma derived - imported)

Berinert 500 IU CSL Behring (Australia)

Pty Ltd

$888.31

Protein C concentrate (plasma derived - imported) Ceprotin 500 IU Baxalta Australia

Pty Ltd

$1,075.00

1000 IU $2,150.00

Antithrombin III concentrate (plasma derived - domestic)

Thrombotrol 1000 IU CSL Behring (Australia)

Pty Ltd

$1,391.711

Intravenous IVIg (plasma derived - domestic) Intragam P 3g/50ml CSL Behring (Australia)

Pty Ltd

$186.791

12g/200ml $747.151

Intravenous IVIg (plasma derived - domestic) Intragam 10 2.5g/25ml CSL Behring (Australia)

Pty Ltd

$155.661

10g/100ml $622.631

20g/200ml $1,245.251

SCIg (plasma derived - domestic) Evogam 0.8g/5ml CSL Behring (Australia)

Pty Ltd

$49.811

3.2g/20ml $199.241

IVIg (plasma derived - imported) Flebogamma DIF 5% 0.5g/10ml Grifols Australia Pty Ltd $22.50

5% 2.5g/50ml $112.50

5% 5g/100ml $225.00

5% 10g/200ml $450.00

5% 20g/400ml $900.00

10% 5g/50ml $225.00

10% 10g/100ml $450.00

10% 20g/200ml $900.00

IVIg (plasma derived - imported) Privigen 5g/50ml CSL Behring (Australia)

Pty Ltd

$225.00

10g/100ml $450.00

20g/200ml $900.00

40g/400ml $1,800.00

SCIg (plasma derived - imported) Hizentra 1g/5ml CSL Behring (Australia)

Pty Ltd

$57.43

2g/10ml $114.86

4g/20ml $229.72

10g 50ml $574.30

NBA ANNUAL REPORT / 2016-17 162

Product Type Name Presentation Supplier Price

Normal Ig NIg (plasma derived - domestic) Normal Ig VF 2ml (0.32gm) CSL Behring (Australia)

Pty Ltd

$31.311

5ml (0.80gm) $51.331

CMV Ig (plasma derived - domestic) CMV Ig 1.5 million units CSL Behring (Australia)

Pty Ltd

$1,190.041

Hepatitis B Ig (plasma derived - domestic) Hepatitis B Ig 100 IU (2ml) CSL Behring (Australia)

Pty Ltd

$43.501

400 IU (5ml) $99.591

Rh (D) Ig

(plasma derived - imported) Rhophylac 1500 IU CSL Behring (Australia)

Pty Ltd

$395.25

Rh (D) Ig

(plasma derived - domestic) Rh (D) Ig 250 IU CSL Behring (Australia)

Pty Ltd

$29.471

625 IU $73.631

Tetanus Ig (plasma derived - domestic) Tetanus Ig VF 250 IU CSL Behring (Australia)

Pty Ltd

$43.001

4000 IU $687.911

Zoster Ig (plasma derived - domestic) Zoster Ig VF 200 IU CSL Behring (Australia)

Pty Ltd

$272.751

1 The price does not include the starting plasma provided to CSL Behring (Australia) Pty Ltd by the Australian Red Cross Blood Service.

PART 5 APPENDICES 163

APPENDIX 4. MANDATORY REPORTING

Work health and safety • Refer Section 3

Statistics on employees who identify as Indigenous • Refer Section 3

Procurement Initiatives to Support Small Business The National Blood Authority supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website: www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts

The following initiatives employed by the National Blood Authority support small business:

• the Commonwealth Contracting Suite for low-risk procurements valued under $200,000

• Australian Industry Participation plans in whole-of-government procurement where applicable

• the Small Business Engagement Principles (outlined in the government’s Industry Innovation and Competitiveness Agenda), such as communicating in clear, simple language and presenting information in an accessible format

• electronic systems or other processes used to facilitate on-time payment performance, including the use of payment cards.

The National Blood Authority recognises the importance of ensuring that small business are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website: www.treasury.gov.au

NBA ANNUAL REPORT / 2016-17 164

Advertising and market research Section 311A of the Commonwealth Electoral Act 1918 requires particulars of all amounts greater than $13,000 paid during a financial year to advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations. The NBA made no payments of this kind in 2016-17.

Ecologically sustainable development and environmental performance The NBA continued to pursue activities that support the ecologically sustainable principles outlined in Section 3A of the Environment Protection and Biodiversity Conservation Act 1999. During 2016-17, this included the following examples:

• increased use of audio and video conferencing and online collaboration in preference to face-to-face meetings requiring interstate or international travel

• recycling into three streams of waste - co-mingled material, paper and printer cartridges

• purchasing 100 per cent GreenPower for electricity use in our office and offsetting air travel through the GreenFleet program

• encouraging staff to recycle and re-use existing stationery before ordering new supplies

• maintaining paper use reduction initiatives such as defaulting printer settings to print double sided and in black and white and using 100 per cent recycled paper

• running the air conditioning systems on timers and occupancy sensors to ensure operation only during business hours when the immediate area is occupied

• participating in Earth Hour - the office was fully compliant and all staff were encouraged to participate

• ensuring that through purchasing activities further improvements were made within blood product supply contracts

• implemented an electronic document and records management system.

In summary, Table 5.3 provides information on the impact the NBA’s activities have on the natural environment. The NBA continues to look at ways to further reduce the impact on the environment.

PART 5 APPENDICES 165

TABLE 5.3 NBA Environmental performance indicators

Theme Performance

measure

Indicator(s) 2012-131 2013-142 2014-153 2015-164 2016-175

Energy efficiency Total consumption

of energy

Amount of electricity consumed (kWh)

184,564 kWh

135,882 kWh

145,476 kWh

144,108 kWh

150,852 kWh

Amount of gas consumed (MJ)

0 MJ 0 MJ 0 MJ 0 MJ 0 MJ

Amount of other fuels consumed ($/kWh/MJ/L)

0 0 0 0 0

Air travel distances (km) 703,227 kms7

878,974 kms8

762,710 kms9 1,111,186 kms6,10

494,671 kms11

Total consumption of green energy

Amount of green energy purchased/ consumed ($/ kWh)

184,564 kWh

135,882 kWh

145,476 kWh

144,108 kWh

0 kWh

Greenhouse gas emissions Amount of greenhouse

gases produced (tonnes)

0 tonnes 0 tonnes 0 tonnes 0 tonnes 0 tonnes

Relative energy uses

Amount of green energy purchased divided by the amount of electricity consumed

100% 100% 100% 100% 0%

Amount of total energy consumed (kWh) per employee

3,025 kWh

2,123 kWh

1,993 kWh

1,947 kWh

1,927 kWh

NBA ANNUAL REPORT / 2016-17 166

Theme Performance

measure

Indicator(s) 2012-131 2013-142 2014-153 2015-164 2016-175

Waste Total waste

production

Amount of waste produced (tonnes)

9.93

tonnes

9.88

tonnes

11.96 tonnes

13.23 tonnes

10.43 tonnes

Un-recyclable waste production

Amount of waste going to landfills (tonnes)

2.95

tonnes

2.95

tonnes

2.95

tonnes

1.65

tonnes

1.89

tonnes

Recyclable waste production (excluding office paper)

Amount of waste going to recycling facilities (tonnes)

1.071 tonnes

1.162 tonnes

1.113 tonnes

1.2

tonnes

1.38

tonnes

Paper waste production Amount of waste paper

going to recycling facilities (tonnes)

5.909 tonnes12

5.77

tonnes

7.895 tonnes13

9.07

tonnes14

7.152 tonnes

Amount of paper sourced from recyclable sources (tonnes)

0.925 tonnes

1.474 tonnes

1.819 tonnes

0.739 tonnes

1.495 tonnes

Percentage of paper sourced from recyclable sources (per cent)

43% 96%15 99.5% 99.8% 99.7%

Use of renewable/ recyclable products

Amount of products sourced from renewable/ recyclable sources (tonnes)

1.533 tonnes16

1.891 tonnes

0.737 tonnes17

1.491 tonnes

Relative waste production Amount of total waste (tonnes)

per employee

0.16

tonnes

0.15

tonnes

0.16

tonnes

0.18

tonnes

0.13

tonnes

PART 5 APPENDICES 167

Theme Performance

measure

Indicator(s) 2012-131 2013-142 2014-153 2015-164 2016-175

Water Total

consumption of water

Amount of water consumed (L)

393,846 L 400,000 L 340,000 L 414,820 L 441,681 L

Grey water/ rainwater capture and use

Not applicable to NBA tenancies

na na na na na

Relative consumption/ use of water

Amount of total water use (L) per employee

6,456 L 6,250 L 4,657 L 5,525 L 5,641 L

1 The NBA moved to a new tenancy in February 2013; however, the lease for the old tenancy was still effective as at 30 June 2013. Calculations for per employee figures have been based on 53 FTE and 8 contractors. 2

Calculations for per employee figures have been based on 64 people (49 FTE and 15 contractors). 3 Calculations for per employee figures have been based on 73 people (54 FTE and 19 contractors). 4

Calculations for per employee figures have been based on 74 people (54 FTE and 20 contractors). 5 Calculations for per employee figures have been based on 78 people (53 FTE and 25 contractors). 6

The increase in kilometres travelled was due to the national implementation of BloodSTAR, requiring face to face engagement with stakeholders nationally. 7 Electricity fully off-set through 100% green energy purchased and the NBA off-set 703,227 kms in air travel through the GreenFleet program. 8

Electricity fully off-set through 100% green energy purchased and the NBA off-set 878,974 kms in air travel through the GreenFleet program. 9 Electricity fully off-set through 100% green energy purchased and the NBA off-set 762,710 kms in air travel through the GreenFleet program. 10

Electricity fully off-set through 100% green energy purchased and the NBA off-set 1,111,186 kms in air travel through the GreenFleet program. 11 Electricity fully off-set through 100% green energy purchased and the NBA off-set 494,671 kms in air travel through the GreenFleet program. 12

Increase due to office relocation in February 2013 and consolidation of material. 13 During 2014-15, the NBA’s digitisation of long-term retention records and associated destruction of the migrated records led to a significant increase in the volume of shredded paper sent for recycling. 14

The continuation of the project to digitise long-term retention records and the associated destruction of theses migrated records project has increased the volume of shredded paper sent for recycling. 15 Majority of paper sourced was 100% recycled. 16

Previous years data provided as a percentage when it should have been provided in tonnes. 17 The use of the EDRMS and the electronic distribution of Committee Papers has reduced the volume of products sourced overall.

NBA ANNUAL REPORT / 2016-17 168

Grant programs Information on grants awarded by the NBA during the period 1 July 2016 to 30 June 2017 is available at www.blood.gov.au/governmental-compliance

Disability reporting Since 1994, non-corporate Commonwealth entities have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010-11, entities are no longer required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010-2020, which sets out a 10-year national policy framework to improve the lives of people with a disability, promote participation and create a more inclusive society. A high level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports will be available in late 2014, and can be found at www.dss.gov.au

Information Publication Scheme statement Entities subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report. Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements.

A copy of the NBA IPS Plan and associated published documents can be located at http://www.blood.gov.au/ips

Errata Appendix 3. Table 5.2 Rixibus mis-classified. Correctly classified in 2016-17.

Snapshot: Plasmapheresis donors were reported as 548,274 which was the number of plasmapheresis donations.

PART 5 APPENDICES 169

Agency resource statements The agency resource statement provides details of the funding sources that the NBA drew upon in 2016-17. In addition, it provides information about special accounts balances to be carried over to 2017-18.

Actual Available Appropriation for 2016-17 $’000

Payments made 2016-17 $’000

Balance 2016-17

$’000

(a) (b) (a) - (b)

Ordinary Annual Services1

Departmental appropriation2 6,271 6,201 70

Total 6,271 6,201 70

Administered expenses

Outcome 13 5,190 5,190

Total 5,190 5,190

Total ordinary annual services 11,461 11,391

Special Accounts4

Opening balance 189,490

Appropriation receipts5 11,391

Non-appropriation receipts to Special Accounts

1,108,548

Payments made 1,116,569

Total Special Accounts 1,309,429 1,116,569 192,860

Total resourcing and payments 1,320,890 1,127,960

1 Appropriation Act (No. 1) 2016-17 and Appropriation Act (No. 3) 2016-17. This may also include Prior Year departmental appropriation and section 31 relevant agency receipts.

2 Includes an amount of $0.063 million in 2016-17 for the Departmental Capital Budget. For accounting purposes this amount has been designated as ‘contributions by owners’.

3 Includes an amount of $nil in 2016-17 for the Administered Capital Budget.

4 Does not include ‘Special Public Money’ held in accounts like Other Trust Monies account (OTM). Services for other Government and Non-agency Bodies accounts (SOG), or Services for Other Entities and Trust Moneys Special accounts (SOETM).

5 Appropriation receipts from National Blood Authority annual appropriations for 2016-17 included above.

NBA ANNUAL REPORT / 2016-17 170

Resource for outcomes This table provides details of the total funding for each outcome. In 2016-17 the NBA operated under a single outcome.

Outcome 1: Australia’s blood supply is secure and well managed

Budget* 2016-17

$’000

Actual Expenses 2016-17 $’000

Variation 2016-17

$’000

(a) (b) (a) - (b)

Program 1.1: National blood agreement management

Administered expenses

Ordinary Annual Services (Appropriation Bill No. 1) 5,190 5,190 -

Special Accounts 1,135,777 1,045,763 90,014

Departmental expenses

Departmental appropriation1 6,271 6,201 70

Special Accounts 9,305 9,106 199

Expenses not requiring appropriation in the Budget year

465 1,259 -794

Total for Program 1.1 1,157,008 1,067,519 89,489

Total expenses for Outcome 1 1,157,008 1,067,519 89,489

2015-16 2016-17

Average Staffing Level (number) 51 53

* Full year budget, including any subsequent adjustment made to the 2016-17 Budget. 1 Departmental Appropriation combines “Ordinary annual services (Appropriation Act No. 1)” and “Revenue from independent sources (s31)”.

PART 5 APPENDICES 171

APPENDIX 5. LIST OF REQUIREMENTS

Outlined in this section is the information provided in accordance with the Department of Finance’s Resource Management Guide No. 135 Annual reports for non-corporate Commonwealth entities as at July 2017.

na denotes that the requirement was not applicable to the NBA during 2016-17.

nil denotes that this aspect was not reported on for the NBA in 2016-17.

PGPA Rule Reference Part of Report Description Requirement Page

17AD(g) Letter of transmittal

17AI A copy of the letter of transmittal signed

and dated by accountable authority on date final text approved, with statement that the report has been prepared in accordance with section 46 of the Act and any enabling legislation that specifies additional requirements in relation to the annual report.

Mandatory iii

17AD(h) Aids to access

17AJ(a) Front Pages Table of contents. Mandatory iv

17AJ(b) Index Alphabetical index. Mandatory 183-

188

17AJ(c) Appendix 6 Glossary of acronyms and abbreviations. Mandatory 180-

182

17AJ(d) Appendix 5 List of requirements. Mandatory 172-

178

17AJ(e) Front Pages Details of contact officer. Mandatory ii

17AJ(f) Front Pages Entity’s website address. Mandatory ii

NBA ANNUAL REPORT / 2016-17 172

PGPA Rule Reference Part of Report Description Requirement Page

17AJ(g) Front Pages Electronic address of report. Mandatory ii

17AD(a) Review by accountable authority

17AD(a) A review by the accountable authority of

the entity.

Mandatory 8-16

17AD(b) Overview of the entity

17AE(1) (a)(i)

Part 1 A description of the role and functions of

the entity.

Mandatory 2-3

17AE(1) (a)(ii)

Part 1 A description of the organisational

structure of the entity.

Mandatory 4, 87

17AE(1)(a) (iii) Part 2 A description of the outcomes and

programs administered by the entity. Mandatory Section

2 p.83

17AE(1)(a) (iv) Part 1 A description of the purposes of the entity

as included in corporate plan.

Mandatory 2

17AE(1)(b) An outline of the structure of the portfolio

of the entity.

Portfolio departments - mandatory

na

17AE(2) Where the outcomes and programs

administered by the entity differ from any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement that was prepared for the entity for the period, include details of variation and reasons for change.

If applicable, Mandatory

na

17AD(c) Report on the Performance of the entity Annual performance Statements

17AD(c)(i); 16F Part 2 Annual performance statement in

accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule.

Mandatory 20-26

17AD(c)(ii) Report on Financial Performance

17AF(1)(a) Part 4 A discussion and analysis of the entity’s

financial performance.

Mandatory 98-101

17AF(1)(b) Part 4 A table summarising the total resources

and total payments of the entity. Mandatory 100

PART 5 APPENDICES 173

PGPA Rule Reference Part of Report Description Requirement Page

17AF(2) Part 4 If there may be significant changes in

the financial results during or after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.

If applicable, Mandatory.

na

17AD(d) Management and Accountability Corporate Governance

17AG(2)(a) Part 3 Information on compliance with section 10 (fraud systems). Mandatory 85

17AG(2) (b)(i)

Part 3 A certification by accountable authority that fraud risk assessments and fraud control plans have been prepared.

Mandatory 85, iii

17AG(2) (b)(ii)

Part 3 A certification by accountable authority that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.

Mandatory 85, iii

17AG(2)(b) (iii) Part 3 A certification by accountable authority that all reasonable measures have been

taken to deal appropriately with fraud relating to the entity.

Mandatory 85, iii

17AG(2)(c) Part 3 An outline of structures and processes

in place for the entity to implement principles and objectives of corporate governance.

Mandatory 76-85

17AG(2)(d) - (e)

A statement of significant issues reported to Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with Finance law and action taken to remedy non-compliance.

If applicable, Mandatory

na

External Scrutiny

17AG(3) Part 3 Information on the most significant

developments in external scrutiny and the entity’s response to the scrutiny.

Mandatory 84

NBA ANNUAL REPORT / 2016-17 174

PGPA Rule Reference Part of Report Description Requirement Page

17AG(3)(a) Part 3 Information on judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.

If applicable, Mandatory

84

17AG(3)(b) Part 3 Information on any reports on operations of the entity by the Auditor-General (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.

If applicable, Mandatory

84

17AG(3)(c) Part 3 Information on any capability reviews on the entity that were released during the period. If applicable, Mandatory

84

Management of Human Resources

17AG(4)(a) Part 3 An assessment of the entity’s effectiveness in managing and developing employees to achieve entity objectives.

Mandatory 86-93

17AG(4)(b) Part 3 Statistics on the entity’s APS employees

on an ongoing and non-ongoing basis; including the following:

• Statistics on staffing classification level;

• Statistics on full-time employees;

• Statistics on part-time employees;

• Statistics on gender;

• Statistics on staff location;

• Statistics on employees who identify as Indigenous.

Mandatory 88-90

17AG(4)(c) Part 3 Information on any enterprise

agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999.

Mandatory 91-93

17AG(4) (c)(i)

Part 3 Information on the number of SES

and non-SES employees covered by agreements etc identified in paragraph 17AD(4)(c).

Mandatory 90

17AG(4) (c)(ii)

Part 3 The salary ranges available for APS

employees by classification level. Mandatory 90

17AG(4)(c) (iii) Part 3 A description of non-salary benefits

provided to employees.

Mandatory 91

17AG(4) (d)(i)

Part 3 Information on the number of employees at each classification level who received performance pay.

If applicable, Mandatory

92

PART 5 APPENDICES 175

PGPA Rule Reference Part of Report Description Requirement Page

17AG(4) (d)(ii)

Information on aggregate amounts of performance pay at each classification level.

If applicable, Mandatory

na

17AG(4)(d) (iii)

Information on the average amount of performance payment, and range of such payments, at each classification level.

If applicable, Mandatory

na

17AG(4)(d) (iv)

Information on aggregate amount of performance payments. If applicable, Mandatory

na

Assets Management

17AG(5) Part 4 An assessment of effectiveness of assets

management where asset management is a significant part of the entity’s activities.

If applicable, mandatory

101

Purchasing

17AG(6) Part 4 An assessment of entity performance against the Commonwealth Procurement Rules. Mandatory 103-

104

Consultants

17AG(7)(a) Part 4 A summary statement detailing the

number of new contracts engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

Mandatory 104

17AG(7)(b) Part 4 A statement that “During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.

Mandatory 104

17AG(7)(c) Part 4 A summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

Mandatory 103-

104

17AG(7)(d) Part 4 A statement that “Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.”

Mandatory 104

NBA ANNUAL REPORT / 2016-17 176

PGPA Rule Reference Part of Report Description Requirement Page

Australian National Audit Office Access Clauses

17AG(8) Part 4 If an entity entered into a contract with

a value of more than $100 000 (inclusive of GST) and the contract did not provide the Auditor-General with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.

If applicable, Mandatory

na

Exempt contracts

17AG(9) Part 4 If an entity entered into a contract or

there is a standing offer with a value greater than $10 000 (inclusive of GST) which has been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.

If applicable, Mandatory

103

Small business

17AG(10)(a) Part 4 A statement that “[Name of entity]

supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”

Mandatory 104

17AG(10)(b) Part 4 An outline of the ways in which the

procurement practices of the entity support small and medium enterprises.

Mandatory 104

17AG(10)(c) Part 4 If the entity is considered by the

Department administered by the Finance Minister as material in nature—a statement that “[Name of entity] recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.”

If applicable, Mandatory

104

Financial Statements

17AD(e) Part 4 Inclusion of the annual financial

statements in accordance with subsection 43(4) of the Act.

Mandatory 106

PART 5 APPENDICES 177

PGPA Rule Reference Part of Report Description Requirement Page

17AD(f) Other Mandatory Information

17AH(1) (a)(i)

Part 4 If the entity conducted advertising

campaigns, a statement that “During [reporting period], the [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”

If applicable, Mandatory

165

17AH(1) (a)(ii)

Part 5 If the entity did not conduct advertising

campaigns, a statement to that effect. If applicable, Mandatory 165

17AH(1)(b) Part 5 A statement that “Information on grants awarded to [name of entity] during [reporting period] is available at [address of entity’s website].”

If applicable, Mandatory

169

17AH(1)(c) Part 5 Outline of mechanisms of disability

reporting, including reference to website for further information.

Mandatory 169

17AH(1)(d) Part 5 Website reference to where the entity’s

Information Publication Scheme statement pursuant to Part II of FOI Act can be found.

Mandatory 169

17AH(1)(e) Part 5 Correction of material errors in previous

annual report.

If applicable, mandatory

169

17AH(2) Part 5 Information required by other

legislation

Mandatory

Work health and safety (Schedule 2, Part 4 of the Work Health and Safety Act 2011). Mandatory 93

Ecologically sustainable development and environmental performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999).

Mandatory 165-

168

Agency Resource Statements and Resources for Outcomes. Mandatory 170-

171

NBA ANNUAL REPORT / 2016-17 178

[This page has been intentionally left blank]

PART 5 APPENDICES 179

APPENDIX 6. ACRONYMS AND ABBREVIATIONS ABDR Australian Bleeding Disorders Registry

ACSQHC Australian Commission on Safety and Quality in Health Care

ACT Australian Capital Territory

AHCDO Australian Haemophilia Centre Directors’ Organisation

AHMAC Australian Health Ministers’ Advisory Council

ANAO Australian National Audit Office

Anti-D Anti-D Rh D Immunoglobulin

ANZCA Australia & New Zealand College of Anaesthetists Annual Scientific Meeting

ANZCP Australian and New Zealand College of Perfusionists

APS Australian Public Service

APSC Australian Public Service Commission

ASCIA Australasian Society of Clinical Immunology and Allergy

Blood Service Australian Red Cross Blood Service

BloodSTAR blood system for tracking authorisations and reviews

BCP Business Continuity Plan

BEA BloodSafe eLearning Australia

CAFA CSL Australian Fractionation Agreement

CEO Chief Executive Officer

COAG Council of Australian Governments

CUA Credit Union Australia

DAPI discards as a percentage of net issues

DTA Digital Transformation Agency

EA Enterprise Agreement

EAP Employee Assistance Program

FEIBA factor eight inhibitor bypass agent

FFP/FP fresh frozen plasma/frozen plasma

FTE full-time equivalent

FVIII factor eight

NBA ANNUAL REPORT / 2016-17 180

FIX factor nine

GST goods and services tax

HAA annual scientific meeting of the HAA—Haematology Society of Australia and New Zealand—HSANZ, the Australian & New Zealand Society of Blood Transfusion—ANZSBT, and the Australasian Society of Thrombosis and Haemostasis—ASTH

HFA Haemophilia Foundation Australia

HFNSW Haemophilia Foundation New South Wales

HPC Hospitals Principal Committee

ICT Information Communications Technology

Ig immunoglobulin

IMOB Intraoperative Management of Blood

IPS Information Publication Scheme

IU International Units

IVIg Intravenous Immunoglobulin

JBC Jurisdictional Blood Committee

KPI key performance indicator

kWh kilowatt hour

LIS Laboratory Information System

MERS-CoV Middle East Respiratory Syndrome-Coronavirus

MSAC Medical Services Advisory Committee

MyABDR MyABDR is a secure app for smartphones and web site for people with bleeding disorders or parents/caregivers to record home treatments and bleeds

NBA National Blood Authority

NBSCP National Blood Supply Contingency Plan

NHMRC National Health and Medical Research Council

NIg Normal immunoglobulin

NIGAC National Immunoglobulin Governance Advisory Committee

NIMF National Inventory Management Framework

NMF National Managed Fund

NSP&B National Supply Plan and Budget

PART 5 APPENDICES 181

NSQHS National Safety and Quality Health Service

NSRS national service requirements and standards

OBFM Output Based Funding Model

ORBS ordering, receipting blood system

PBM patient blood management

PGPA Public Governance, Performance and Accountability Act

Red Cross The Australian Red Cross Society

R&D research and development

rFVIIa recombinant factor seven (A)

rFVIII recombinant factor eight

rFIX recombinant factor nine

RNAi Ribonucleic acid interference

SCIg subcutaneous immunoglobulin

SES Senior Executive Service

SME small and medium enterprises

SPF staff participation forum

SWG specialist working group

TGA Therapeutic Goods Administration

TOIL time off in lieu

vWD von Willeband disease

WFH World Federation of Hemophilia

WB whole blood

NBA ANNUAL REPORT / 2016-17 182

INDEX

A

accountability and management, 76-93

see also finance

acronyms and abbreviations list, 180-182

administered finances, 99-100

special accounts, 97

administrative tribunal decisions, 84

advertising and market research, 165

age demographic of staff, 89

agency resource statements, 170-171

angioedema, 51

annual performance statement, 20-26

annual reports, 152

NBA errata, 169

NBA list of requirements, 172-178

Anti-D, 63

apheresis, 33, 34, 159

donors, 6, 40, 169

assets and asset management, 99, 102

administered items, 101

Audit Committee, 21, 79, 80, 83, 156

Australasian Society for Clinical Immunology and Allergy, 51

Australian Bleeding Disorders Registry (ABDR), 52, 54

Australian Commission on Safety and Quality in Health Care (ACSQHC), 69, 83

Australian Information Commissioner, 84

Australian National Audit Office (Auditor-General), 79, 84

Australian Public Service Commission Employee Census, 86

Australian Red Cross Blood Service (Blood Service), 11, 15, 39-41, 53, 83

data security breach, 10, 40

NMF (Blood and Blood Products) Special Account 2017, 96-97

see also fresh blood

B

balance sheet, 99

Baxalta Australia Pty Ltd, 30, 45, 160, 161, 162

Bio-Rad Laboratories Pty Ltd, 31, 45

bleeding disorders, 53, 54

blood cells, see red blood cells

blood donations, 6, 49

Blood Service, see Australian Red Cross Blood Service

BloodMove Platelets project, 67

BloodNet, 6, 10, 54, 56-58

Fate Module, 6, 51

BloodNet User Reference Group, 56

BloodSafe eLearning Australia, 68

BloodSTAR, 47-50, 56

Board, 14-16, 150-156

budget, see finance

Business Committee, 78

Business Contingency Plan, 53

PART 5 APPENDICES 183

C

C1 Esterase Inhibitor Concentrate, 10, 51, 162

capability reviews, 84

Chief Executive (General Manager), 3, 78, 79, 80

review of year, 8-12

classification of staff, 88-89, 90

rationalisation of levels, 92

clinical demand, see demand

clinical practice guidelines, see Patient Blood Management (PBM) Guidelines

clotting factors, see Factor VIIa; Factor VIII; Factor IX

Comcare, reportable incidents lodged with, 93

Commonwealth Ombudsman, 84

communication and promotion, 58, 66

see also information communication technology

competitive tendering and contracting, 103

conferences and sector events, 66

consultants, 104

contingency plans, 52-53

contracts, see purchasing

Corporate Plan, 21

Council of Australian Governments (COAG) Health Council, 3, 51, 53, 99

Crimson Portfolio, 54, 55

Criteria for the clinical use of intravenous immunoglobulin in Australia, 9, 47-50

CSL Behring Pty Ltd, 15, 29, 160

Australian Fractionation Agreement, 9, 34, 42

imports, 43, 45, 160, 161-163; C1 Esterase Inhibitor Concentrate, 19, 51, 162

Customer Service Charter, 84

D

data developments, 51-52

see also information communication technology

data security breach, 10, 40

Deed of Agreement, Red Cross, 11, 39-41, 53, 83

demand, 34-36, 38

variance between actual and NBA estimate, 23

diagnostic reagent products, 6, 30-31, 45

Digital Transformation Agency (DTA), 10

disability reporting, 169

discards, see wastage and discards

donor management, Blood Service, 40

E

ecologically sustainable development, 165-168

education and training, 68

staff, 85, 92

employees, 10, 79, 85, 86-93

enterprise agreement, 90

environmental performance, 165-168

establishment of NBA, 77

exempt contracts, 103

expenditure, see finance

external scrutiny, 84

F

Factor VIIa (rFVIIa), 30, 36-37

supply contracts, 11, 160

Factor VIII (rFVIII), 34, 35

Anti-Inhibitor (FEIBA), 36, 37, 160

supply contracts, 11, 160-161

Factor IX (rFIX), 34, 36

supply contracts, 11, 161

NBA ANNUAL REPORT / 2016-17 184

finance, 3, 96-146, 170-171

Blood Service, 11, 32, 40, 96-97

grant programs, 169

see also purchasing

financial assets, 99

financial statements, 106-146

audit report, 98

fractionation, see plasma and recombinant products

fraud control, 85

freedom of information, 169

fresh blood, 28, 31-34, 39-41

components supplied under contract, 159

see also Australian Red Cross Blood Service; patient blood management; platelets; red blood cells

full-time staff, 88

functions and role, 2, 14

G

gender of staff, 88-89

General Manager, see Chief Executive

governance, 10, 76-80

blood sector data and information, 52

immunoglobulin program, 9, 46-50

grant programs, 169

Grifols Australia, 30, 43, 45, 162

Guidelines for Managing Blood and Blood Product Inventory, 47

H

haemophilia and bleeding disorders, 53, 54

see also Factor VIIa; Factor VIII; Factor IX

haemovigilance, 52

hereditary angioedema, 51

horizon scanning, 59-60

human resources, 10, 79, 85, 86-93

I

immunoglobulins (Ig), 38, 52

Anti-D, 63

governance program, 9, 46-50

imported supplies, 30, 38, 43, 162-163

income, see finance

Indigenous staffing, 88

information communication technology (ICT), 54-58

BloodNet, 6, 10, 54, 56-58; Fate Module, 6, 51

BloodSafe eLearning Australia, 68

BloodSTAR, 47-50, 56

data security breach, 10, 40

Steering Committee, 79

Information Framework Agreements, 52

Information Publication Scheme statement, 169

internal audit, 80

international horizon scanning, 59-60

inventory management, 47

Blood Service, 40

CSL Australian Fractionation Agreement, 42

imported immunoglobulin, 43

imported plasma derived and recombinant products, 45

see also BloodNet; wastage and discards

J

Johnson & Johnson Medical Pty Ltd, 30, 45

judicial decisions, 84

Jurisdictional Blood Committee (JBC), 51, 54

K

key performance indicators, see performance indicators/criteria

L

legal decisions, 84

legislation, 3, 14, 76, 77, 96

Public Governance, Performance and

Accountability Act 2013, 21, 96, 104

Public Governance, Performance and

PART 5 APPENDICES 185

Accountability Rule 2014 (PGPA Rule), 21, 85

liabilities, see assets

M

management and accountability, 76-93

see also finance

market research and advertising, 165

Medical Services Advisory Committee, 51

Ministers, 3

MyABDR portal, 54

N

National Blood Account, 96, 97

National Blood Agreement, 3, 59, 71, 76, 77

evaluations undertaken under Schedule 4, 51

National Blood and Blood Product Wastage Reduction Strategy 2013-2017, 51, 63, 65

National Blood Authority Act 2003, 3, 14, 76, 77, 96

National Blood Authority Board, 14-16, 150-156

National Blood Sector Data and Information Governance Framework, 52

National Blood Sector Data and Information Strategy and Scorecard 2013-2016, 51-52

National Blood Sector Education and Training Strategy, 68

National Blood Sector Research and Development Pilot, 71-73

National Blood Supply Contingency Plan, 52, 53

National Haemovigilance Report 2017, 52

National Immunoglobulin Governance Advisory Committee, 46

National Immunoglobulin Governance Program, 9, 46-50

National Inventory Management Framework, 23

National Managed Fund Action Plan Review, 53

National Managed Fund (Blood and Blood Products) Special Account 2017, 96-97

National Patient Blood Management Collaborative, 83

National Patient Blood Management Guidelines Implementation Strategy, 62, 63

National Policy: Access to Government Funded

Immunoglobulin Products in Australia, 47

National Products and Services List, 51

National Safety and Quality Health Service Standard on Blood and Blood Products, 24, 62, 69

National Safety and Quality Health Service Standards, 69

National Service Requirements and Standards, 40

National Supply Plan and Budget, 28-38, 99

non-English speaking backgrounds, employees from, 88

non-financial assets, 99

non-ongoing staff, 89

normal immunoglobulin (NIg), 38, 163

Novo Nordisk Pharmaceuticals Pty Ltd, 30, 45, 160

O

objectives, 28-73

occupational health and safety, 92-93

Ombudsman, 84

ongoing staff, 89

online services, see information communication technology

operating result, 98-101

Blood Service, 32, 40

operational planning, 81-83

organisation and structure, 2-16, 76-80

organisation charts, 4, 76, 78, 87

Ortho-Clinical Diagnostics, 30, 45

Output Based Funding Model, 32, 40, 100

overseas horizon scanning, 59-60

P

Parliamentary committees, 84

part-time staff, 11

patient blood management, 62-64, 83

BloodSTAR, 47-50, 56

performance criteria and results, 24-26

NBA ANNUAL REPORT / 2016-17 186

Patient Blood Management (PBM) Guidelines, 26, 63,

64

BloodSafe eLearning Australia releases based on,

68

payroll function, 92

people management, 10, 79, 85, 86-93

performance indicators/criteria, 22-26

Australian Red Cross Blood Service, 39-40

CSL Australian Fractionation Agreement, 42

environmental performance, 166-168

imported immunoglobulin, 43

imported plasma derived and recombinant

products, 45

performance pay, 92

performance statement, 20-26

Pfizer Australia Pty Ltd, 30, 45, 161

planning framework, 81-83

contingencies, 52-53

plasma and recombinant products, 28, 29, 30, 34-38

supply contracts, 11, 42-45, 160-163

supply risk mitigation, 53

see also immunoglobulins

plasma for fractionation, 9, 32, 34, 42, 159

plasma only collection centres, 40

plasmapheresis, see apheresis

platelets, 7, 33, 159

wastage, 67

Portfolio Budget Statements, 21

prices, 32, 34, 35, 159-163

procurement, see purchasing

productivity gains, 92

Project Governance Boards, 79

promotion and communication, 66

see also information communication technology

Public Governance, Performance and Accountability

Act 2013, 21, 96, 104

Public Governance, Performance and Accountability

Rule 2014 (PGPA Rule), 21, 85

Public Service Act 1999, 3

purchasing, 103-104, 164-165

purchasing of blood and blood product supply, 3, 11,

28-45, 159-163

C1 Esterase Inhibitor Concentrate, 10, 51, 162

contract management, 39-45

savings, 11, 32, 35; from wastage reduction, 6, 32,

67

see also inventory management

Q

Queensland, 51

R

recombinant products, see plasma and recombinant

products

red blood cells, 7, 32-33, 34, 62, 159

diagnostic reagent products, 6, 30-31, 45

wastage and discards, 25, 32, 51, 65

remuneration of staff, 90-91, 92

Request for Information and Stakeholder

Consultation Paper, 11

research and development, 71-73

Blood Service, 41

resource statements, 170-171

revenue, see finance

PART 5 APPENDICES 187

Review of Risk Management in the Blood Sector, 53

Rh D immunoglobulin, 63

risk management, 52-53

S

safe and efficient use, 24, 61-73

salary and remuneration, 90-91, 92

satisfaction with Blood Service, 40

savings, 11, 32, 35

from wastage reduction, 6, 32, 67

sector monitoring, 59-60

security of supply, see supply

Senior Executive Management, 79, 80

Seqirus Pty Ltd, 45

Service Charter, 84

small business, procurement initiatives to support, 104, 164

South Australia, 67

special accounts, 96-97

Specialist Working Groups, 49

staff, 10, 79, 85, 86-93

stakeholders, 70

engagement program, 15

standards, 52, 68

Blood Service, 40

National Safety and Quality Health Service, 24, 62, 69

Statement on national stewardship expectations for the supply of blood and blood products, 63

supply, 11, 28-60, 159-163

performance criteria and results, 22-24

supply chain management, see inventory management

T

tenders, see purchasing

training, see education and training

tribunal decisions, 84

V

values, 87

W

wastage and discards, 25, 32, 51, 63

BloodNet Fate Module, 6, 51

platelets, 67

red blood cells, 25, 32, 51, 65

website services, see information communication technology

Western Australia, 58

whole blood, 33, 34, 40, 159

work health and safety, 92-93

NBA ANNUAL REPORT / 2016-17 188