EmailHospital Circular 13/2003
Date Issued: 20 June 2003
Publication: 13/2003
Distribution: Rural & Regional Public Hospitals
Subject: High Yield Investment Account
Purpose: To advise on the introduction of the High Yield Investment Account (HYIA) for Rural Health Services
Overview of HYIA Operations
The HYIA was announced as an initiative of the State Budget in May 2003.
It is intended to introduce the HYIA early in 2003-04.
There has been some concern that the initiative pools hospitals funds to a centralised account. This will not be the case.
DHS will arrange for the opening of at call HYIAs for each Rural Hospital/Health Service into which fortnightly departmental operating and/or capital payments will be made. Health Services may then transfer all or some of those funds to their usual operating accounts.This will be at the local discretion of each Hospital/Health Service, as will be the decision to leave funds in the high yield investment account.
Since the HYIAs are not operating accounts, Rural Hospitals/Health Services will need to transfer sufficient funds to current/operating accounts to meet cash requirements. Remaining HYIA funds may be transferred to other investment accounts/vehicles, again at your local discretion.
Therefore, the proposed HYIA facility represents considerable flexibility for your Hospital/Health Service by way of provision of an additional investment vehicle, whilst retaining capacity to maintain local banking arrangements.
Next Steps
Over the next few weeks, DHS will work with Westpac to operationalise the initiative. This will include accounts establishment, redirecting DHS payments, procedures for Hospitals/Health Services to utilise the HYIA such as Internet transfers to operating or other investment accounts, HYIA reports, etc.
After these aspects have been designed and tested, operating procedures will be advised to Rural Hospitals/Health Services.
Queries
For queries on this circular please email the Department's CFO rob.barr@dhs.vic.gov.au
Lance Wallace
Executive Director
Financial & Corporate Services
