Page 1

Tomorrow

can be different

2008-2009 Financial Report


St Vincent de Paul Society Victoria Inc. 1

Contents Income Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement Notes to the Financial Statements Statement by State Council Independent Auditor’s Report

• • • • • • •

2 3 4 5 6 34 35


2 Tomorrow can be different 2008-2009 Financial Report

Income Statement for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

11,468,229 21,208,495 23,359,047 7,851,170 12,320

8,414,631 19,231,125 19,861,514 7,717,922 (10,607)

10,507,262 774,703 22,463,723 1,373,160 12,320

7,559,695 520,444 18,893,509 1,214,664 (10,607)

63,899,261

55,214,585

35,131,168

28,177,705

189,945

1,555,417

188,668

711,897

3 (a) 3 (b) 3 (c) 3 (d)

(15,926,587) (1,167,599) (3,044,020) (5,942,560)

(12,406,749) (936,243) (2,805,824) -

(14,215,667) (1,167,599) (3,041,950) -

(10,822,719) (936,243) (2,804,228) -

3 (e)

(37,315)

-

-

-

(26,118,081)

(16,148,816)

(18,425,216)

(14,563,190)

37,971,125

40,621,186

16,894,620

14,326,412

(10,216,481) (16,099,392) (10,511,730) (3,059,598) (39,887,201)

(8,964,095) (13,985,492) (8,936,212) (2,712,535) (34,598,334)

(10,277,632) (3,059,598) (13,337,230)

(8,984,305) (2,712,535) (11,696,840)

(66,005,282)

(50,747,150)

(31,762,446)

(26,260,030)

(1,916,076)

6,022,852

3,557,390

2,629,572

Note Revenue Fundraising Government grants Sale of goods Other revenue Changes in fair value of financial assets designated as at fair value through profit or loss Total Revenue Other Income Net gain on sale of property, plant and equipment Operating Expenses Cost of sales Fundraising/public relations Administration Impairment of held-to-maturity investments carried at amortised cost Loss on sale of non-current assets classified as held for sale

2 (a) 2 (b) 2 (c) 2 (d) 2 (e)

2 (f)

Total Funds Available for Client Activities Client Services Expenses People in Need Services Aged Care Services Homelessness & Housing Services Support Services

3 (f) 3 (g) 3 (h) 3 (i)

Total Expenses (Deficit)/Surplus for the period

The accompanying notes form part of these financial statements


St Vincent de Paul Society Victoria Inc. 3

Balance Sheet as at 30 June 2009

Note Current Assets Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets Non-current assets classified as held for sale Total Current Assets Non-Current Assets Financial assets Investments in controlled entities Property, plant & equipment Intangible assets Total Non-Current Assets

5 6 7 8 10 11

8 9 12 13

Total Assets

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

23,673,171 1,220,510 203,433 3,125,462 903,514 29,126,090 29,126,090

13,514,804 1,428,283 138,684 4,027,344 514,222 19,623,337 1,200,000 20,823,337

7,878,680 760,244 176,132 2,192,772 690,315 11,698,143 11,698,143

4,620,797 1,192,354 118,910 523,914 462,250 6,918,225 6,918,225

8,057,440 62,712,975 14,115,009 84,885,424

16,000,000 61,139,507 14,143,322 91,282,829

6,000,000 53,354,343 22,972,662 90,659 82,417,664

8,000,000 52,406,043 22,144,345 89,057 82,639,445

114,011,514

112,106,166

94,115,807

89,557,670

Current Liabilities Trade and other payables Provisions Other liabilities Total Current Liabilities

14 15 16

2,787,105 4,032,320 13,539,592 20,359,017

2,023,047 3,888,249 10,724,913 16,636,209

2,123,572 1,044,820 396,980 3,565,372

1,226,936 1,007,338 331,694 2,565,968

Non-Current Liabilities Provisions Total Non-Current Liabilities

15

564,270 564,270

465,654 465,654

89,491 89,491

88,148 88,148

Total Liabilities

20,923,287

17,101,863

3,654,863

2,654,116

Net Assets

93,088,227

95,004,303

90,460,944

86,903,554

100 35,944,624 57,143,503 93,088,227

100 33,430,326 61,573,877 95,004,303

17,010,356 73,450,588 90,460,944

14,537,286 72,366,268 86,903,554

93,088,227

95,004,303

90,460,944

86,903,554

Equity Contributed equity Reserves Retained earnings Total parent entity interest

17

Total Equity

The accompanying notes form part of these financial statements


4 Tomorrow can be different 2008-2009 Financial Report

Statement of Changes in Equity for the year ended 30 June 2009 Consolidated Entity

Reserves (Note 17) Contributed Equity $

Balance at 1 July 2007 Surplus Transfer to Bequest Reserve Transfer from Asset Revaluation Reserve Write-down against Asset Revaluation Reserve Settled sum contributed by the trustee of St Vincent de Paul Victoria Endowment Fund Balance at 30 June 2008 Deficit Transfer to Bequest Reserve Transfer to Bushfire Appeal Reserve At 30 June 2009

Retained Asset Earnings Revaluation Reserve $ $

Capital Profits Reserve $

Bequest Reserve

Fund-a -Future Reserve $

Total

$

Bushfire Appeal Reserve $

$

-

53,588,524 6,022,852 (307,699)

30,860,734 -

198,036 -

4,538,557 307,699

-

130,000 -

89,315,851 6,022,852 -

-

2,270,200

(2,270,200)

-

-

-

-

-

-

-

(334,500)

-

-

-

-

(334,500)

100

-

-

-

-

-

-

100

100

61,573,877

28,256,034

198,036

4,846,256

-

-

(1,916,076) (41,228) (2,473,070)

-

-

41,228 -

2,473,070

100

57,143,503

28,256,034

198,036

4,887,484

2,473,070

Parent Entity

130,000 95,004,303 -

(1,916,076) -

130,000 93,088,227

Reserves (Note 17) Contributed Equity $

Retained Asset Earnings Revaluation Reserve $ $

Capital Profits Reserve $

Bequest Reserve $

Bushfire Appeal Reserve $

Fund-a -Future Reserve $

Total

$

Balance at 1 July 2007 Surplus Transfer to Bequest Reserve Balance at 30 June 2008

-

69,902,115 2,629,572 (165,419) 72,366,268

13,235,238 13,235,238

-

1,136,629 165,419 1,302,048

-

Surplus Transfer to Bushfire Appeal Reserve

-

3,557,390 (2,473,070)

-

-

-

2,473,070

-

At 30 June 2009

-

73,450,588

13,235,238

-

1,302,048

2,473,070

- 90,460,944

The accompanying notes form part of these financial statements

- 84,273,982 2,629,572 - 86,903,554 3,557,390 -


St Vincent de Paul Society Victoria Inc. 5

Cash Flow Statement for the year ended 30 June 2009

Note Cash flows From Operating Activities: Receipts from operating activities Receipts from supporters Payments to clients, suppliers and employees Interest received Net cash provided by operating activities

21 (b)

Cash flows From Investing Activities: Proceeds from sale of plant and equipment Proceeds from sale of non-current assets classified as held for sale Proceeds from investments Payment for property, plant and equipment Payments for intangible assets Payments for investments Capital contributed to subsidiaries Net cash provided by/(used in) investing activities Cash flows From Financing Activities: Proceeds from residents’ accommodation bonds Repayment of residents’ accommodation bonds Settled sum contributed by the trustee of St Vincent de Paul Victoria Endowment Fund Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

21 (a)

The accompanying notes form part of these financial statements

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

50,549,703 11,985,217 (56,954,534) 1,709,902 7,290,288

44,981,203 8,406,676 (48,199,575) 2,128,422 7,316,726

22,900,185 11,985,217 (29,829,026) 682,228 5,738,604

18,165,798 8,406,676 (24,627,406) 888,126 2,833,194

1,462,702 1,162,685

4,773,560 -

1,269,146 -

1,293,972 -

4,003,430 (5,613,483) (47,911) (932,690) 34,733

2,000,000 (10,092,228) (86,836) (984,350) (4,389,854)

500,000 (3,253,656) (47,911) (948,300) (2,480,721)

(2,446,612) (50,762) (480,920) (600,304) (2,284,626)

5,515,288 (2,681,942) -

3,160,419 (2,674,036) 100

-

-

2,833,346

486,483

-

-

10,158,367 13,514,804

3,413,355 10,101,449

3,257,883 4,620,797

548,568 4,072,229

23,673,171

13,514,804

7,878,680

4,620,797


6 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements for the year ended 30 June 2009

Note 1. Summary of Significant Accounting Policies The St Vincent de Paul Society Victoria Inc. is a non government welfare agency incorporated under the Associations Incorporations Act (Vic) 1981 and is domiciled in Australia. The Society operates a separate company limited by guarantee to run its aged care, community services and disability employment services. The Society’s registered office and its principal place of business are as follows:

Registered office 43 - 45 Prospect Street Box Hill VIC 3128 Tel: (03) 9895 5800

Principal place of business 43 - 45 Prospect Street Box Hill VIC 3128 Tel: (03) 9895 5800

Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards and Interpretations and the requirements of the Associations Incorporations Act (Vic) 1981 and complies with other requirements of the law. The financial report covers the consolidated entity being St Vincent de Paul Society Victoria Inc., St Vincent de Paul Aged Care and Community Services, St Vincent de Paul Victoria Endowment Fund and Society of St Vincent de Paul (Victoria). The consolidated entity in these financial statements will be referred to as “the Group”. The parent entity is St Vincent de Paul Society Victoria Inc. The financial report of St Vincent de Paul Society Victoria Inc. complies with Australian Accounting Standards to

the extent noted above, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Due to the application of Australian specific provisions for not-for-profit entities contained only within the AIFRS, the financial reports and notes thereto are not necessarily compliant with all International Accounting Standards. The financial statements were authorised for issue by State Council on 19 September 2009.

Basis of preparation The financial report has been prepared on an accruals basis and is based on historic costs modified by the revaluations of selected non-current assets and financial assets and liabilities, for which the fair value basis of accounting has been applied. Cost is based on the fair value of the consideration given in exchange for assets. The financial report is presented in Australian dollars. The following specific accounting policies have been consistently applied, unless otherwise stated.

Critical accounting judgements and key sources of estimation uncertainty In the application of the Group’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Adoption of new and revised Accounting Standards In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. There were no material impacts from the adoption of these new and revised Standards and Interpretations on the financial statements. The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

(a) Principles of consolidation The consolidated financial statements of St Vincent de Paul Society Victoria Inc. comprises the consolidated financial reports of St Vincent de Paul Society Victoria Inc., St Vincent de Paul Aged Care and Community Services, St Vincent de Paul Victoria Endowment Fund and Society of St Vincent de Paul (Victoria). A controlled entity is any entity controlled by St Vincent de Paul Society Victoria Inc. Control exists where St Vincent de Paul Society Victoria Inc. has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with St Vincent de Paul Society Victoria Inc. to achieve the objectives of St Vincent de Paul Society Victoria Inc. A list of controlled entities is contained in Note 9. All inter-entity balances and transactions between entities in the economic entity have been eliminated on consolidation.


St Vincent de Paul Society Victoria Inc. 7

(b) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. All revenue is stated net of the amount of goods and services tax (GST). The St Vincent de Paul Society Victoria Inc. is a non-profit organisation and receives a principal part of its income from donations, as cash or in kind. Amounts donated can be recognised only as revenue when the entity gains control, economic benefits are probable and the amount of the contribution can be measured reliably. State Council has the responsibility for ensuring that all voluntary and other revenues to which the Society gains control are accounted for properly. This involves establishing controls to ensure that voluntary revenue is recorded in the financial records; however at times it is impractical to maintain controls over the collection of such revenue prior to its initial entry into the financial records or to ensure that any economic benefit can be measured reliably. Therefore, voluntary revenue is recognised in these accounts when control, benefit and reliable measurement can be achieved.

Sale of goods Revenue from the sale of goods is recognised upon delivery of the goods to customers.

Government grants Government grants are principally of a recurrent or capital nature and intended to fund ongoing operations or asset acquisitions. Income from grants is measured at the fair value of the contributions received or receivable and only when all the following conditions have been satisfied: • the Group obtains control of the grant funds or the right to receive the grant funds; • it is probable that the economic benefits comprising grants will flow to the Group; and • the amount of the grant can be measured reliably.

Government grants are recognised as revenue when the entity gains control of the funds.

Accommodation bonds Accommodation bonds received from incoming residents are held for each individual resident and are recognised as a current liability. Monthly retention fees are deducted from each bond account according to the statutory requirements and are recognised as revenue. Interest earned on all monies is recognised as revenue and is used in accordance with the prudential requirements.

Client contributions Client contributions by clients who have the capacity to pay are recognised when the service is provided.

Donations and bequests Revenue from donations and bequests is recognised when received into the Gift Account.

Interest revenue Interest revenue from banks and from residents with outstanding bonds, is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Revenue on sale of non-current assets Revenue on sale of non-current assets is recognised when an unconditional sale contract is signed and the risks and rewards of ownership have transferred to the purchaser.

(c) Income tax The Group is exempt under the provisions of the Income Tax Assessment Act (as amended), and as such is not subject to income taxes at this time. Accordingly, no income tax has been provided for the economic entity in these financial statements.

(d) Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to an insignificant risk of changes in value and have a maturity

of three months or less at the date of acquisition. For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

(e) Financial assets Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs, except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value. Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, ‘held-to-maturity investments’, ‘loans and receivables’ and ‘term deposits’.

Effective interest method 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 (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period.

Held to maturity investments Collateralised debt obligations, floating rate notes and units in equity linked investments with fixed or determinable payments and fixed maturity dates where that the Group has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Heldto-maturity invesments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.


8 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 1. Summary of Significant Accounting Policies (cont.) (e) Financial assets (cont.) Financial assets at fair value through profit and loss A financial asset is classified in this category if it is held for trading; that is principally with the objective of selling in the short-term with a profit making intention. In addition, any other financial assets so designated by management on initial recognition are included in this category. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest income is recognised by applying the effective interest rate.

Term deposits Investments in term deposits are measured on the cost basis.

Impairment of financial assets Financial assets are assessed for indicators of impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.

For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

(f) Accommodation bonds Accommodation bonds received from incoming residents are held for each individual resident and are recognised as a current liability. Monthly retention fees are deducted from each bond account according to the statutory requirements and are recognised as revenue. Interest earned on all monies is recognised as revenue and is used in accordance with the prudential requirements.

(g) Assets held in trust The Company, Society of St Vincent de Paul (Victoria), holds various properties in trust for St Vincent de Paul Society Victoria Inc.

(h) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except: i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified within operating cash flows.


St Vincent de Paul Society Victoria Inc. 9

(i) Property, plant and equipment Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are carried in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Plant and equipment, leasehold improvements are stated at cost less accumulated depreciation and impairment. Construction in progress is stated at cost. Cost includes expenditure that is directly attributable to the acquisition or construction of the item. In the event that the settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the

difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. The following depreciation rates and methods are used in the calculation of depreciation: Class of property, plant and equipment

Depreciation rates and method

Buildings

1% to 2.5% straight line 10% straight line

Building Improvements Leasehold improvements Furniture, Plant & Equipment Computer Hardware Motor Vehicles

Over the term of the lease 7% to 20% straight line 33% straight line 15% to 20% straight line

Artwork and antiquities are not depreciated. Land is not a depreciable asset.

(j) Intangibles Intangible assets are only recognised if they meet the identifiability criteria, that it is separable from the Group and arises from contractual or other legal rights. Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over their estimated useful lives.

Computer software Computer software that is not integral to the operation of a related piece of hardware or plant is classified as an intangible (for example, accounting systems software), and is initially recognised at cost. Subsequent to initial recognition, computer software is carried at its cost less accumulated amortisation and impairment losses. Computer software has a finite life, and is amortised on a systematic basis over its estimated useful life, being on a straight line basis over 3 years.

Aged Care bed licences Bed licences that are purchased are initially recorded at cost. Bed licences that are received for no consideration are recognised at their fair value at the date of acquisition, having regard to recent sale activity within the industry, which the Group then uses to record the licences at deemed cost. Bed licences have an indefinite life, as long as the Group continues to comply with the terms and conditions imposed by Government. Bed licences are therefore tested annually for impairment. Subsequent to initial recognition, bed licences continue to be carried at their original deemed cost (being their fair value on acquisition), less any impairment losses.

(k) Impairment The carrying values of tangible and intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount. At each reporting date, State Council reviews a number of factors affecting tangible and intangible assets (which includes property, plant and equipment) including their carrying values, to determine if these assets may be impaired. If an impairment indicator exists, the recoverable amount of the asset, being the higher of the asset’s ‘fair value less costs to sell’ and ‘value in use’ is compared to the carrying value. Any excess of the asset’s carrying value over its recoverable amounts is expensed in the Income Statement as an impairment expense. As the future economic benefits of the Group’s assets are not primarily dependant on their ability to generate net cash inflows, and if deprived of the asset, the Group would replace the asset’s remaining future economic benefits, ‘value in use’ may be determined as the depreciated replacement cost of the asset, rather than by using discounted future cash flows.


10 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 1. Summary of Significant Accounting Policies (cont.) (k) Impairment (cont.) Depreciated replacement cost is defined as the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The current replacement cost of an asset is its cost measured by reference to the lowest cost at which the future economic benefits of that asset could currently be obtained in the normal course of business. Impairment losses are recognised in the Income Statement.

(l) Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Where inventories are held for distribution or are to be consumed by the Group in providing services or aid at no or nominal charge, they are valued at the lower of cost and replacement cost.

(m) Trade and other receivables Trade receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

(n) Financial liabilities Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.

Financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

(o) Trade and other payables Trade and other payables represent unpaid liabilities for goods received by and services provided to the Group prior to the end of the financial year. The amounts are unsecured and are normally settled within 30 days.

(p) Leases Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the Income Statement on a straight-line basis over the lease term. Finance leases, which transfer to the Group substantially all the risks and benefits included in ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant

rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

(q) Employee Benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Sick leave is non-vesting and has not been provided for. Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Company in respect of services provided by employees up to reporting date.

(r) Standards and Interpretations issued not yet effective At the date of authorisation of the financial report, the relevant Standards and Interpretations listed below were in issue but not yet effective. Initial application of the following Standards will not affect any of the amounts recognised in the financial report, but will change the disclosures presently made in relation to the Group’s financial report:


St Vincent de Paul Society Victoria Inc. 11

Standard AASB 101 ‘Presentation of Financial Statements’ (revised September 2007), AASB 2007-8 ‘Amendments to Australian Accounting Standards arising from AASB 101’, AASB 2007-10 ‘Further Amendments to Australian Accounting Standards arising from AASB 101’

Effective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year ending

1 January 2009

30 June 2010

Initial application of the following Standards and Interpretations is not expected to have any material impact to the financial report of the Group: AASB 123 ‘Borrowing Costs’ (revised), AASB 2007-6 ‘Amendments 1 January 2009 to Australian Accounting Standards from AASB 123’ AASB 3 ‘Business Combinations’ (revised), AASB 127 ‘Consolidated AASB 3 (business and Separate Financial Statements’ (revised) and AASB 2008-3 combinations occurring ‘Amendments to Australian Accounting Standards arising from AASB 3 after the beginning of and AASB 127’ annual reporting periods beginning 1 July 2009), AASB 127 and AASB 2008-3 (1 July 2009) AASB 2008-1 ‘Amendments to Australian Accounting Standard – 1 January 2009 Share-based Payments: Vesting Conditions and Cancellations’ AASB 2008-2 ‘Amendments to Australian Accounting Standards – 1 January 2009 Puttable Financial Instruments and Obligations arising on Liquidation’ AASB 2008-5 ‘Amendments to Australian Accounting Standards arising 1 January 2009 from the Annual Improvements Project’ AASB 2008-6 ‘Further Amendments to Australian Accounting Standards 1 July 2009 arising from the Annual Improvements Project’ AASB 2008-7 ‘Amendments to Australian Accounting Standards – Cost 1 January 2009 of an Investment in a Subsidiary, Jointly Controlled Entity or Associate’ AASB 2008-8 ‘Amendments to Australian Accounting Standards 1 July 2009 – Eligible Hedged Items’ AASB Interpretation 15 ‘Agreements for the Construction of Real Estate’ 1 January 2009 AASB Interpretation 16 ‘Hedges of a Net Investment in a Foreign Operation’ 1 October 2008 AASB Interpretation 17 ‘Distributions of Non-cash Assets to Owners’, 1 July 2009 AASB 2008-13 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 17 - Distributions of Non-cash Assets to Owners’

30 June 2010 30 June 2010

30 June 2010 30 June 2010 30 June 2010 30 June 2010 30 June 2010 30 June 2010 30 June 2010 30 June 2010 30 June 2010

The initial application of the expected issue of an Australian equivalent accounting Standard/Interpretation to the following Standard/Interpretation is not expected to have a material impact on the financial report of the Group: IFRIC 18 ‘Transfers of Assets from Customers’ 1 July 2009 30 June 2010

(s) Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.


12 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

2,777,683 8,690,546 11,468,229

2,732,180 5,682,451 8,414,631

2,350,955 8,156,307 10,507,262

2,591,179 4,968,516 7,559,695

774,703 9,576,876 10,182,721 674,195 21,208,495

520,444 8,838,257 9,230,063 642,361 19,231,125

774,703 774,703

520,444 520,444

21,860,548 284,926 318,249 895,324 23,359,047

18,477,981 90,578 324,950 968,005 19,861,514

21,860,548 284,926 318,249 22,463,723

18,477,981 90,578 324,950 18,893,509

4,710,057 317,903 1,838,336 984,874 7,851,170

4,531,266 301,175 2,300,393 585,088 7,717,922

682,228 690,932 1,373,160

877,520 337,144 1,214,664

12,320

(10,607)

12,320

(10,607)

63,899,261

55,214,585

35,131,168

28,177,705

189,945

1,555,417

188,668

711,897

Note 2. Revenue and Other Income (a) Fundraising activities Bequests Donations

(b) Government grants Councils/Conferences/Centres Community Services Aged Care Ozanam Enterprises

(c) Sale of goods Sales - Centres of Charity Sales - Groceries Sales - Piety Sales - Ozanam Enterprises

(d) Other revenue Client rent/fees Accomodation bonds retention Interest received - other persons Sundry income

(e) Change in fair value of financial assets designated as at fair value through profit or loss Total Revenue

Other Income (f) Net gain on sale of property, plant and equipment


St Vincent de Paul Society Victoria Inc. 13

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

6,897,068 1,250,062 7,779,457 15,926,587

5,856,316 837,515 5,712,918 12,406,749

5,569,062 1,147,133 7,499,472 14,215,667

4,567,442 713,630 5,541,647 10,822,719

481,650 160,802 525,147 1,167,599

330,667 238,405 367,171 936,243

481,650 160,802 525,147 1,167,599

330,667 238,405 367,171 936,243

23,057 66,879 956,813 340,894 190,779 59,681 236,587 109,837 36,241 119,875 6,528 401,667 495,182 3,044,020

16,538 134,723 1,013,243 274,103 123,621 97,443 227,225 8,712 39,098 29,847 18,404 479,393 343,474 2,805,824

23,057 64,879 956,813 340,894 190,779 59,681 236,587 109,837 36,241 119,875 6,528 401,597 495,182 3,041,950

16,538 133,127 1,013,243 274,103 123,621 97,443 227,225 8,712 39,098 29,847 18,404 479,393 343,474 2,804,228

(d) Significant expense Impairment of held-to-maturity investments carried at amortised cost

5,942,560

-

-

-

(e) Loss on sale of non-current assets classified as held for sale

37,315

-

-

-

923,520 37,640 4,364,911 1,320,373 417,561 401,196 149,717 656,219 10,773 43,858 1,046,326 580,717 35,359 228,311 10,216,481

847,297 63,075 3,879,486 1,260,845 456,847 399,481 126,236 852,845 19,085 10,385 570,523 31,866 446,124 8,964,095

923,520 37,640 4,364,911 1,320,373 417,561 401,196 149,717 656,219 10,773 43,858 1,046,326 580,717 35,359 289,462 10,277,632

847,297 63,075 3,879,486 1,260,845 456,847 399,481 126,236 852,845 19,085 10,385 570,523 31,866 466,334 8,984,305

Note 3. Operating (Deficit)/Surplus Operating expenses (a) Cost of sales Employee salaries & benefits Cost of goods sold - purchases/materials Selling & Administration

(b) Fundraising/public relations Employee salaries & benefits Promotion Other (c) Administration Computer maintenance Legal & Audit Employee salaries & benefits Depreciation & amortisation Insurance Motor vehicle running costs Printing/Postage/Office supplies Repairs & maintenance Telephone Training Travel & accommodation Other - includes Shared Services costs State Council

(f) People in Need Services Accommodation/Transport Cash Food vouchers Food purchases Whitegoods Utilities Medical Education Compassionate Youth Bushfire relief Overseas Bursary Sundry


14 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

786,123 329,033 991,181 10,783,089 92,252 302,891 470,673 46,046 417,328 211,066 39,412 464,653 219,140 39,055 907,450 16,099,392

729,224 298,652 593,125 9,955,462 93,212 218,614 152,650 50,364 281,625 183,923 43,190 423,002 188,870 82,209 691,370 13,985,492

-

-

329,033 1,314,315 404,686 6,954,260 105,490 245,694 153,127 176,579 93,180 193,542 5 541,819 10,511,730

298,652 1,310,368 364,991 5,887,026 50,889 90,110 155,323 159,658 89,089 163,510 366,596 8,936,212

-

-

190,777 1,034,042 261,611 617,566 955,602 3,059,598

185,220 932,377 232,913 476,620 885,405 2,712,535

190,777 1,034,042 261,611 617,566 955,602 3,059,598

185,220 932,377 232,913 476,620 885,405 2,712,535

66,005,282

50,747,150

31,762,446

26,260,030

Note 3. Operating (Deficit)/Surplus (cont.) Operating expenses (cont.) (g) Aged Care Services Catering & Food Cleaning Depreciation Employee salaries & benefits Occupancy Medical & other supplies Legal & Audit Motor vehicle running Repairs & maintenance Resident amenities Telephone Utilities Workcover Interest paid - other persons Other (h) Homelessness & Housing Services Cleaning/Waste removal Client support/Emergency accommodation Depreciation Employee salaries & benefits Occupancy Legal & Audit Motor vehicle running Repairs & maintenance Telephone Utilities Interest paid - other persons Other (i) Support Services Accounting & payroll support Conference Support - Employee salaries & benefits Conference Support - Other State, National, International Councils Conference operating


St Vincent de Paul Society Victoria Inc. 15

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

851,093 148,536 193,599 789,587 629,442 155,001 2,767,258

608,142 73,115 50,445 518,251 620,230 95,858 1,966,041

262,751 38,848 193,599 311,428 432,994 105,242 1,344,862

260,611 14,735 46,420 192,606 435,509 44,152 994,033

76,224 2,651 2,099

61,274 26,228 (1,544) -

46,309 -

20,657 -

3,006,359

2,095,623

2,856,088

2,003,686

95,872 95,872

102,777 10,344 113,121

44,000 44,000

65,511 10,344 75,855

5,950,463

4,260,743

4,291,259

3,094,231

189,945 (37,315) 152,630

1,555,417 1,555,417

188,668 188,668

711,897 711,897

1,594,760 112,800 26,400

1,489,250 100,800 48,310

854,260 60,000 -

785,000 48,000 6,910

143,528

134,062

76,883

70,680

1,877,488

1,772,422

991,143

910,590

(j) Other items (Deficit)/surplus from operating activities has been determined after: (i) Expenses Depreciation and amortisation of property, plant & equipment - Buildings - Building Improvements - Leasehold Improvements - Furniture, Plant and Equipment - Motor Vehicles - Computer Equipment

Amortisation of Computer Software Construction costs expensed Impairment of trade receivables Bad debts written off Rental expense on operating leases - Minimum lease payments Remuneration of Auditor - Audit - Other Services

(ii) Net gains Net gain on sale of property, plant and equipment Loss on sale of non-current assets classified as held for sale

Note 4. Key Management Personnel Compensation Short-term employee benefits - Salary & Fees - Non-Cash Benefits - Other Post-employment benefits - Superannuation Total

Key management personnel are defined as those officers that report to a Chief Executive Officer.


16 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

57,039

55,991

41,049

38,301

455,467 145,028 1,434,175 26,946 4,873

35,189 198,059 973,643 483,569 4,873

455,467 145,028 -

35,189 198,059 -

7,237,136 13,212,507 1,100,000 23,673,171

4,349,248 7,414,232 13,514,804

7,237,136 7,878,680

4,349,248 4,620,797

Trade debtors (i) Allowance for doubtful debts

527,039 (25,807) 501,232

470,404 (23,156) 447,248

169,750 169,750

300,534 300,534

Other debtors Amount receivable from subsidiary

719,278 -

981,035 -

535,169 55,325

740,639 151,181

1,220,510

1,428,283

760,244

1,192,354

Note 5. Cash and Cash Equivalents Cash on hand Cash deposits with banks Councils & Central Office Centres Aged Care & Community Services SVDP Victoria Endowment Fund Society of St Vincent de Paul (Victoria) Term Deposits Councils, Central Office & Conferences Aged Care & Community Services SVDP Victoria Endowment Fund

Note 6. Trade and Other Receivables

Total Current Receivables

(i) The average credit period on sale of goods and rendering of services is 30 days. No interest is charged on the trade receivables. An allowance has been made for estimated irrecoverable trade receivable amounts arising from the sale of goods and rendering of services, determined by reference to past default experience. Included in the Group’s trade receivable balance are debtors with a carrying amount of $113,525 (2008: $38,407) which are past due at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. The Group does not hold any collateral over these balances. The average age of these receivables is 109 days (2008: 103 days). Ageing of past due debtors 61 - 90 days Over 90 days

Movement in the allowance for doubtful debts Balance at the beginning of the year Impairment losses recognised on receivables Amounts written off as uncollectible Impairment losses reversed Balance at the end of the year

51,220 88,112 139,332

35,291 26,272 61,563

12,679 189 12,868

23,040 1,592 24,632

23,156 4,870 (2,219) 25,807

24,700 4,000 (5,544) 23,156

-

-

In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, State Council believes that there is no further credit provision required in excess of the allowance for doubtful debts.


St Vincent de Paul Society Victoria Inc. 17

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

203,433

138,684

176,132

118,910

2,932,690

4,003,430

2,000,000

500,000

6,000,000 339,000 1,718,440 8,057,440

8,000,000 6,000,000 2,000,000 16,000,000

6,000,000 6,000,000

8,000,000 8,000,000

192,772 11,182,902

23,914 20,027,344

192,772 8,192,772

23,914 8,523,914

3,125,462 8,057,440

4,027,344 16,000,000

2,192,772 6,000,000

523,914 8,000,000

11,182,902

20,027,344

8,192,772

8,523,914

Note 7. Inventories Finished goods - average cost

Note 8. Other Financial Assets Held-to-maturity investments carried at amortised cost: Current Medium term notes Non-Current Medium term notes Collateralised debt obligations Units in equity linked investment

Financial assets carried at fair value through profit or loss: Current Shares in listed corporations

Disclosed in the financial statements as: Current financial assets Non-current financial assets

Maturity Date

Consolidated 2009 Units

Medium term notes Floating rate note Colonial Finance (i) Floating rate note CBA Subordinate Debt (ii) Floating rate note CFS Retail Property Trust (iii) Floating rate note CBA Subordinate Debt (iii) Floating rate note CBA Subordinate Debt (iii) Floating rate note Colonial Finance (iii) Floating rate note HSBC (iii) Floating rate note Macquarie (iii) Collateralised debt obligations Corsair Pure (CBA) Prelude Euro CDO (ANZ) Equity linked investment Asprit II (ANZ)

Consolidated 2008 $

Units

Parent Entity 2009 $

Units

Parent Entity 2008 $

Units

$

2 Dec 2008 - 3,000,000 3,000,000 10 Feb 2009 - 1,000,000 1,003,430 31 Jul 2009 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

500,000 500,000 1,000,000 1,000,000 1,000,000

16 Feb 2010 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

1,000,000 1,000,000 1,000,000

10 Nov 2010 1,000,000

-

-

24 Mar 2011 3,000,000 3,000,000 3,000,000 19 May 2011 1,000,000 1,000,000 1,000,000 31 May 2012 2,000,000 2,000,000 2,000,000 9,000,000 8,932,690 12,000,000

3,000,000 1,000,000 2,000,000 12,003,430

(iv) (v) 20 Jun 2011 3,000,000 (iv) (vi) 30 Jun 2012 3,000,000 6,000,000

932,690

-

-

-

-

3,000,000 3,000,000 3,000,000 3,000,000 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 2,000,000 2,000,000 8,000,000 8,000,000 8,500,000 8,500,000

339,000 3,000,000 3,000,000 - 3,000,000 3,000,000 339,000 6,000,000 6,000,000

-

-

-

-

(iv) (vii) 30 Mar 2013 2,000,000 1,718,440 2,000,000 2,000,000 2,000,000 1,718,440 2,000,000 2,000,000

-

-

-

-


18 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 8. Other Financial Assets (cont.) (i) The Colonial Finance floating rate note was redeemed at maturity on 2 December 2008. Proceeds were re-invested into term deposits. (ii) The CBA Subordinated Debt floating rate notes were redeemed at maturity on 10 February 2009. Proceeds were re-invested into term deposits. (iii) The Group holds medium term notes returning a variable rate of interest. The weighted average rate on these securities is 3.44% (2008: 7.98%). The notes are redeemable at face value at maturity dates ranging between 1 to 36 months from reporting date. (iv) Collateralised debt obligations and equity linked financial instruments were re-stated to their revised amortised cost at 30 June 2009. The instruments are linked to an underlying portfolio of financial institutions and other stocks worldwide. At the time of the initial investment, the portfolios had a AAA credit rating and were paying a coupon. Due to severity of the financial markets downturn in late 2008/2009 a large number of underlying stocks in the portfolio had lost their AAA credit ratings and had a number of credit default events. The valuation of the collateralised debt obligations and equity linked instruments ultimately depends on the number of credit defaults in the underlying portfolio, credit spreads and credit ratings. If a certain number of credit defaults is progressively reached within a portfolio, the instrument is affected through the principal becoming progressively impaired and/or the coupon payments ceasing. (v) Corsair Pure Based on the number of credit defaults in the underlying portfolio and other valuation considerations the instrument’s principal has been impaired by $2,661,000. The instrument continues to pay coupon interest. As such the fair value represents discounted future coupon payments (BBSW + 90 bps). As discussed in Note 27 to the financial statements, the Corsair investment was subsequently valued at nil as at 31 August 2009. The ultimate partial or full recovery of the principal at maturity will depend on the underlying portfolio performance. Such recovery would represent a reversal of the impairment loss through profit and loss. (vi) Prelude Euro Based on the number of credit defaults in the underlying portfolio and other valuation considerations the instrument’s principal has been impaired by $3,000,000. The instrument has ceased paying coupon interest as of 1 July 2008. The ultimate partial or full recovery of the principal at maturity will depend on the underlying portfolio performance. Such recovery would represent a reversal of the impairment loss through profit and loss. (vii) Asprit II The principal of the instrument is guaranteed by the issuer (Bank of Australia and New Zealand – credit rating AA-). Due to the underlying portfolio performance, the instrument has ceased paying coupon interest as of 1 July 2008. As such the instrument has been impaired by $281,560. Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

-

-

53,354,343

52,406,043

Note 9. Investments in Controlled Entities Non-Currnet Investments in controlled entities

Country of Incorporation

Percentage Owned

Parent Entity: St Vincent de Paul Society Victoria Inc.

Australia

-

-

Controlled entities of St Vincent de Paul Society Victoria Inc. St Vincent de Paul Aged Care and Community Services Society of St Vincent de Paul (Victoria) St Vincent de Paul Victoria Endowment Fund St Vincent de Paul Community Housing

Australia Australia Australia Australia

100% 100% 100% 100%

100% 100% 100% -

During the financial year, St Vincent de Paul Society Victoria Inc. contributed a further $948,300 (2008: $600,304) to the St Vincent de Paul Victoria Endowment Fund. The purpose of the fund is to provide a separate entity into which a percentage of the bequests will be channelled over a period of time, and remain within the fund with interest earnings flowing back to St Vincent de Paul Society Victoria Inc. or its controlled entities. It is the trustee’s intention that the principal of each bequest will remain within the fund in perpetuity.


St Vincent de Paul Society Victoria Inc. 19

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

364,227 539,287 903,514

185,567 328,655 514,222

364,227 326,088 690,315

185,567 276,683 462,250

789,300 410,700 1,200,000

-

-

Note 10. Other Assets – Current GST recoveries Prepayments

Note 11. Non-Current Assets Classified as Held for Sale Land held for sale (i) Building held for sale (i)

-

(i) On 15 October 2008, the property at 24 St David Street, Geelong North was sold at the agreed price of $1,200,000 less costs to sell of $37,315. The loss on sale is disclosed in Note 3(e) to the financial statements.

Note 12. Property, Plant & Equipment Land At cost Buildings At cost Buildings under construction Less accumulated depreciation

Building Improvements At cost Less accumulated depreciation

Leasehold Improvements At cost Less accumulated depreciation

Furniture, Plant & Equipment At cost Less accumulated depreciation

22,089,125

22,439,125

8,808,114

9,158,114

33,850,598 1,355,826 (4,420,130) 30,786,294

34,077,437 672,942 (3,658,364) 31,092,015

10,121,409 417,068 (1,778,433) 8,760,044

10,366,257 403,084 (1,605,009) 9,164,332

1,864,620 (311,654) 1,552,966

1,182,753 (163,117) 1,019,636

510,169 (54,070) 456,099

311,319 (15,222) 296,097

1,220,659 (262,707) 957,952

460,148 (69,108) 391,040

1,181,490 (240,019) 941,471

428,306 (46,420) 381,886

7,362,555 (3,327,888) 4,034,667

6,134,224 (2,543,242) 3,590,982

2,648,222 (1,004,151) 1,644,071

1,968,695 (692,723) 1,275,972


20 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

Note 12. Property, Plant & Equipment (cont.) Motor Vehicles At cost Less accumulated depreciation

Computer Hardware At cost Less accumulated depreciation

Artwork & Antiquities At cost

5,464,941 (2,799,687) 2,665,254

5,051,016 (2,596,049) 2,454,967

4,003,463 (2,195,337) 1,808,126

3,754,190 (1,967,807) 1,786,383

1,203,205 (579,468) 623,737

575,684 (424,467) 151,217

882,945 (330,663) 552,282

306,982 (225,421) 81,561

2,980 62,712,975

525 61,139,507

2,455 22,972,662

22,144,345

Reconciliations Reconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the current and previous financial year are set out below and in the following page. Total Land Carrying amount at beginning of financial year Additions Disposals Classified as held for sale Impairment loss recognised against Asset Revaluation Reserve Carrying amount at end of financial year

22,439,125 (350,000) 22,089,125

25,169,125 (1,740,000) (789,300) (200,700) 22,439,125

9,158,114 (350,000) 8,808,114

9,398,114 (240,000) 9,158,114

Total Buildings Carrying amount at beginning of financial year Additions Transfer Capital WIP Disposals Classified as held for sale Impairment loss recognised against Asset Revaluation Reserve Construction costs expensed Less depreciation Carrying amount at end of financial year

31,092,015 1,918,939 (1,189,893) (183,674) (851,093) 30,786,294

27,492,522 7,256,493 (1,525,816) (952,314) (410,700) (133,800) (26,228) (608,142) 31,092,015

9,164,332 1,032,443 (990,306) (183,674) (262,751) 8,760,044

9,213,117 741,312 (403,353) (126,133) (260,611) 9,164,332

1,019,636 475,097 206,769 (148,536) 1,552,966

442,757 602,829 49,541 (2,376) (73,115) 1,019,636

296,097 190,890 7,960 (38,848) 456,099

52,498 208,793 49,541 (14,735) 296,097

Total Building Improvements Carrying amount at beginning of financial year Additions Transfer Capital WIP Disposals Less depreciation Carrying amount at end of financial year


St Vincent de Paul Society Victoria Inc. 21

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

Total Leasehold Improvements Carrying amount at beginning of financial year Additions Transfer Capital WIP Less depreciation Carrying amount at end of financial year

391,040 264,034 496,477 (193,599) 957,952

4,026 125,285 312,174 (50,445) 391,040

381,886 257,485 495,699 (193,599) 941,471

116,132 312,174 (46,420) 381,886

Total Furniture, Plant & Equipment Carrying amount at beginning of financial year Additions Transfer Capital WIP Disposals Less depreciation Carrying amount at end of financial year

3,590,983 1,117,806 118,213 (2,748) (789,587) 4,034,667

2,247,900 819,312 1,164,101 (122,079) (518,252) 3,590,983

1,275,972 561,314 118,213 (311,428) 1,644,071

946,083 482,058 41,638 (1,202) (192,606) 1,275,972

Total Motor Vehicles Carrying amount at beginning of financial year Additions Disposals Less depreciation Carrying amount at end of financial year

2,454,967 1,576,065 (736,336) (629,442) 2,665,254

2,282,568 1,189,042 (396,413) (620,230) 2,454,967

1,786,383 1,001,540 (546,803) (432,994) 1,808,126

1,597,172 835,892 (211,172) (435,509) 1,786,383

Total Computer Hardware Carrying amount at beginning of financial year Additions Transfer Capital WIP Disposals Less depreciation Carrying amount at end of financial year

151,217 259,087 368,434 (155,001) 623,737

151,438 99,265 (3,628) (95,858) 151,217

81,561 207,529 368,434 (105,242) 552,282

65,525 62,423 (2,235) (44,152) 81,561

525 2,455 2,980

525 525

2,455 2,455

-

61,139,507 5,613,483 (1,272,758) (2,767,258) 62,712,974

57,790,859 10,092,228 (3,216,810) (1,200,000) (334,500) (26,228) (1,966,041) 61,139,507

22,144,345 3,253,656 (1,080,477) (1,344,862) 22,972,662

21,272,509 2,446,612 (580,742) (994,033) 22,144,345

Total Artwork & Antiquities Carrying amount at beginning of year Additions Carrying amount at end of financial year Total Property, Plant & Equipment Carrying amount at beginning of financial year Additions Disposals Classified as held for sale Impairment loss recognised against Asset Revaluation Reserve Construction costs expensed Less depreciation Carrying amount at end of financial year

An independent valuation of land and buildings was performed in 2009 financial year by Charter Keck Cramer. Total current market value of land and buildings is $88,235,000 for the Group and $36,595,000 for the parent entity, which is greater than the carrying amount of $52,875,419 for the Group and $17,568,158 for the parent entity. In accordance with the accounting policy in Note 1(i), land and buildings have not been revalued to the current market value.


22 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

14,000,000

14,000,000

-

-

791,692 (676,683) 115,009

743,781 (600,459) 143,322

176,127 (85,468) 90,659

128,216 (39,159) 89,057

14,115,009

14,143,322

90,659

89,057

Note 13. Intangibles Aged Care Bed Licences Aged Care Bed Licences at cost Computer Software & IT Development At cost Less accumulated amortisation

Total Intangibles

Reconciliations Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the current and previous financial year are set out below: Aged Care Bed Licences Carrying amount at beginning and end of financial year Total Computer Software & IT Development Carrying amount at beginning of financial year Additions Disposals Less amortisation Carrying amount at end of financial year Total Intangibles Carrying amount at beginning of financial year Additions Disposals Less amortisation Carrying amount at end of financial year

14,000,000

14,000,000

-

-

143,322 47,911 (76,224) 115,009

119,095 86,836 (1,335) (61,274) 143,322

89,057 47,911 (46,309) 90,659

60,287 50,762 (1,335) (20,657) 89,057

14,143,322 47,911 (76,224) 14,115,009

14,119,095 86,836 (1,335) (61,274) 14,143,322

89,057 47,911 (46,309) 90,659

60,287 50,762 (1,335) (20,657) 89,057

1,776,209 489,516 377,772 143,608 2,787,105

818,246 466,770 331,052 406,979 2,023,047

642,946 197,448 218,365 948,300 116,513 2,123,572

241,812 230,926 146,141 600,304 7,753 1,226,936

Note 14. Trade and Other Payables Unsecured: Trade creditors (i) Accrued creditors Other creditors Amount payable to subsidiary GST payable

(i) The average credit period on purchases of goods is 30 days. No interest is charged on the trade payables. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.


St Vincent de Paul Society Victoria Inc. 23

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

Note 15. Provisions Current Employee benefits (i)

(a)

4,032,320

3,888,249

1,044,820

1,007,338

Non-Current Employee benefits

(a)

564,270

465,654

89,491

88,148

4,596,590

4,353,903

1,134,311

1,095,486

(a) Aggregate Employee Entitlement Liability

(i) The current provision of employee benefits includes $3,424,539 (parent entity: $1,044,820) of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2008: $3,469,749 and $1,007,338 for the Group and for the parent entity respectively).

Note 16. Other Liabilities Unsecured: Refundable accommodation bonds Grants in advance Prepaid income Other liabilities

12,072,066 1,301,276 146,980 19,270 13,539,592

9,673,705 996,989 31,694 22,525 10,724,913

396,980 396,980

331,694 331,694

Note 17. Reserves Nature and purpose of reserves as disclosed in the Statement of Changes in Equity: Asset revaluation reserve $28,256,034 (2008: $28,256,034) Represents previous increases in valuation of land and buildings. Land and buildings are now held at deemed cost, however the entity is using this reserve to keep a record of those previous revaluations.

Capital profits reserve $198,036 (2008: $198,036) Represents the capital value of land and building sold.

Fund-a-Future reserve $130,000 (2008: $130,000) Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24.

Bequest reserve $4,887,484 (2008: $4,846,256) The Group receives bequests where the bequestor has nominated a specific purpose or service to which the funds are to be directed. In these instances the Group establishes a reserve to recognise the unapplied funds from bequests of this nature. The reserve is supported by the Donations and Bequest Register that details the breakdown of the reserve.

Bushfire Appeal reserve $2,473,070 (2008: Nil) Represents funds set aside to assist Bushfire survivors as they return to re-establish their homes and livelihood within their communities. During the financial year, St Vincent de Paul Society Victoria Inc. raised $3.5 million in donations and received another $200,000 from government grants, a total of $3.7 million. As at 30 June 2009, $1.2 million of these funds have been spent, leaving a balance of $2.5 million.


24 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009 Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

Commitments in relation to a lease contracted for at the reporting date but not recognised as assets receivable: Within one year 50,000 Later than one year but not later than 5 years 200,000 Later than five years 250,000

50,000 200,000 50,000 300,000

Representing Non-cancellable operating lease

300,000

Note 18. Lease Commitments Receivable

-

-

250,000

Note 19. Contingent Liabilities St Vincent de Paul Aged Care and Community Services engaged Chargold Project Management Pty Ltd (“Chargold�) to construct the new Aged Care Facility in Geelong in 2008. A subsequent dispute arose between the Company and Chargold in relation to the construction work. This matter has been settled and the Company is waiting for the determination of legal costs. The total amount is not expected to be material.

Note 20. Captial and Lease Commitments (a) Lease Commitments Payable Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities payable: Operating Leases Not later than one year 3,135,317 1,084,889 3,003,898 Later than one year but not later than 5 years 7,663,187 1,501,617 7,355,028 Later than five years 1,783,081 740 1,782,345 12,581,585 2,587,246 12,141,272

1,076,132 1,483,354 2,559,486

The property and equipment leases are non cancellable leases spanning various terms with rental paid monthly and quarterly in advance. This covers property leases for Centres and Community Services and equipment leases for the Group.

(b) Capital Commitments Capital expenditure commitments contracted for: Building works and refurbishment projects

Payable Not later than one year

-

296,001 296,001

-

-

-

296,001

-

-


St Vincent de Paul Society Victoria Inc. 25

Consolidated Entity 2009 $

Consolidated Entity 2008 $

Parent Entity 2009 $

Parent Entity 2008 $

Note 21. Notes to the Statement of Cash Flows (a) Reconciliation of cash and cash equivalents Cash and cash equivalents at the end of the financial period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows: Cash on hand 57,039 55,991 41,049 38,301 Cash deposits with banks 2,066,489 1,695,333 600,495 233,248 Bank term deposits 21,549,643 11,763,480 7,237,136 4,349,248 Balance per Cash Flow Statement

23,673,171

13,514,804

7,878,680

4,620,797

6,022,852

3,557,390

2,629,572

(b) Reconciliation of cash flow from operations with operating deficit/surplus Operating (deficit)/surplus

(1,916,076)

Non-cash flows and non-operating activities in operating deficit/surplus Depreciation and amortisation 2,843,482 Construction costs expensed Impairment of held-to-maturity investments carried at amortised cost 5,942,560 Change in fair value of financial assets designated (12,630) as at fair value through profit or loss Net gain on sale of property, plant and equipment (189,945) Loss on sale of non-current assets classified as held for sale 37,315 Bequests received in the form of shares in listed corporations (156,228) Residents’ accommodation bond retentions (306,800) Interest deducted from residents’ accommodation bond (166,710) Interest paid and payable on refund of residents’ accommodation bond 38,525

2,027,315 26,228 10,606

1,391,171 (12,630)

1,014,690 10,606

(1,555,417) (287,906) (166,788) 40,473

(188,668) (156,228) -

(711,897) -

Changes in assets and liabilities Decrease/(increase) in receivables Increase in inventories Increase/(decrease) in prepayments Increase in payables and other liabilities Increase/(decrease) in provisions

207,773 (64,749) (210,632) 1,001,716 242,687

(407,344) (20,901) 57,021 1,345,069 225,518

362,209 (57,222) (49,405) 853,162 38,825

(587,057) (21,720) (24,050) 560,242 (37,192)

7,290,288

7,316,726

5,738,604

2,833,194

Cash Flows from operations

-


26 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 22. Financial Instruments (a) Financial risk management The Group’s financial instruments consist mainly of deposits with banks, short-term investments, bank notes, equity linked investments, accounts receivable and payable, and refundable accommodation bonds. The Group’s investment strategies and associated risk profile is set out in the Treasury Policy, and is reviewed by the Finance Committee. Membership of the Finance Committee consists of representatives from State Council and the St Vincent de Paul Aged Care and Community Services Board as well as external members selected for their particular financial and legal expertise.

(i) Treasury risk management The Finance Committee has the responsibility of determining the spread of investments across available financial investment options within the confines of the Group’s Treasury Policy and analysing interest rate exposure in the context of the most recent economic conditions and forecasts. The Finance Committee meet on a regular basis to monitor movement in the financial investments and make recommendations to State Council and the Board of Directors.

(ii) Financial risks The main risks the Group is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.

Interest rate risk The Group is subject to normal commercial interest rate fluctuations on its bank accounts and money market instruments. For further details on interest rate risk, refer to Note 22(b).

Foreign currency risk The Group is not exposed to fluctuations in foreign currencies.

Liquidity risk Ultimate responsibility for liquidity risk management rests with the State Council and the Board of Directors. The Finance Committee has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. For further details on liquidity risk, refer to Note 22(c).

Price risk The Group is not exposed to any material commodity price risk.

Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the Group uses publicly available financial information and its own trading record to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Finance Committee annually. Trade receivables consist of a large number of customers, including Aged Care residents, Community Services clients and other customers spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Group does not have any significant credit risk exposure to any single

counterparty or any group of counterparties having similar characteristics. The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements.

(b) Interest rate risk The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates, and the effective weighted average interest rates on those financial assets and financial liabilities, are presented in the schedule on the following page. Exposures arise predominantly from assets bearing variable interest rates as the Group intends to hold fixed interest rate assets to maturity.

Interest rate sensitivity The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative and nonderivative instruments at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates. At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant, the Group’s net deficit would respectively decrease or increase by $173,000 (2008: net surplus would respectively increase or decrease by $167,000). The parent entity’s net surplus would respectively increase or decrease by $79,000 (2008: increase or decrease by $65,000). This is mainly attributable to the Group’s exposure to interest rates on its variable rate instruments.


St Vincent de Paul Society Victoria Inc. 27

Financial Instruments

Weighted average effective interest rate

Floating Interest Rate

Fixed interest rate maturing in:

1 year or less

Non Interest bearing

Over 1 to 5 years 2009 2008 $ $

2009

2008

2009 $

2008 $

2009 $

2008 $

3.11% 3.40% 4.15%

7.36% 7.06% 7.29%

5,143,072 -

1,719,254 -

2,094,064 14,643,200 1,126,946

2,629,994 8,385,081 483,569

-

-

641,544 19,472 -

0.00%

0.00%

-

-

-

-

-

-

4,873

Trade and Other Receivables -SVDP Inc. -ACCS -SVDP VIC Endowment Fund

-

-

-

-

-

-

-

Other Financial Assets -SVDP Inc. -ACCS -SVDP VIC Endowment Fund

3.44% 0.68% 3.39%

8.08% 7.18% 8.14%

8,000,000 2,057,440 932,690

8,500,000 11,000,000 503,430

-

-

-

- 16,133,202

21,722,684

17,864,210

-

-

-

-

-

-

-

-

-

-

(i) Financial Assets Cash -SVDP Inc. -ACCS -SVDP VIC Endowment Fund -Society of SVDP (Victoria)

Total Financial Assets

2009 $

2008 $

Total carrying amount as per the statement of financial position

2009 $

2008 $

271,549 7,878,680 4,620,797 20,484 14,662,672 8,405,565 - 1,126,946 483,569 4,873

4,873

4,873

-

704,919 1,041,173 525,218 406,718 16,180 3,548

704,919 525,218 16,180

1,041,173 406,718 3,548

-

-

192,772 -

11,498,644

-

-

-

-

-

- 1,175,272 626,632 1,175,272 626,632 - 1,609,833 1,396,415 1,609,833 1,396,415 2,000 2,000 -

-

-

-

-

- 12,072,066 9,673,705 12,072,066

-

-

-

-

- 14,859,171 11,696,752 14,859,171 11,696,752

23,914 -

8,192,772 8,523,914 2,057,440 11,000,000 932,690 503,430

2,104,978 1,772,259 36,102,390 34,993,587

(ii) Financial Liabilities Trade and Other Payables -SVDP Inc. -ACCS -SVDP VIC Endowment Fund Refundable Accommodation Bonds -ACCS Total Financial Liabilities

Non-interest bearing other financial assets consist of shares in listed entities, carried at fair value.

9,673,705


28 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 22. Financial Instruments (cont.) (c) Liquidity Risk The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Consolidated

Weighted average interest rate %

Less than 1 year $

1-5 years

5+ years

$

$

2009 Non-interest bearing

0.00%

14,859,171

-

-

2008 Non-interest bearing

0.00%

11,696,752

-

-

Weighted average interest rate %

Less than 1 year $

1-5 years

5+ years

$

$

2009 Non-interest bearing

0.00%

2,123,572

-

-

2008 Non-interest bearing

0.00%

1,226,936

-

-

Parent Entity

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group anticipates that the cash flow will occur in a different period. Consolidated

Weighted average interest rate %

Less than 1 year $

1-5 years

5+ years

$

$

2009 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

0.00% 2.90% 3.35%

2,104,978 2,390,575 23,724,217 28,219,770

9,435,630 9,435,630

-

2008 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

0.00% 7.59% 7.18%

1,772,259 5,349,146 13,302,937 20,424,342

18,465,411 18,465,411

-


St Vincent de Paul Society Victoria Inc. 29

Parent Entity

Weighted average interest rate %

Less than 1 year $

1-5 years

5+ years

$

$

2009 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

0.00% 3.44% 3.11%

1,539,235 2,232,093 7,258,017 11,029,345

6,241,244 6,241,244

-

2008 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

0.00% 8.08% 7.36%

1,336,636 1,174,458 4,373,892 6,884,986

9,100,666 9,100,666

-

(d) Net Fair Values The net fair values of listed investments have been valued at the quoted market bid price at balance date adjusted for transaction costs expected to be incurred. For other assets and liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form other than listed investments. The aggregate net fair values and carrying amounts of the Group’s financial assets and financial liabilities are disclosed in the Balance Sheet and in the notes to the financial statements. Aggregate net fair values and carrying amounts of the Group’s financial assets and financial liabilities at balance date 2009

2008

Carrying Amount $

Net Fair Value $

Carrying Amount $

Net Fair Value $

23,673,171 1,246,317 11,182,902 36,102,390

23,673,171 1,220,510 10,681,332 35,575,013

13,514,804 1,451,439 20,027,344 34,993,587

13,514,804 1,428,283 15,137,654 30,080,741

2,787,105 12,072,066 14,859,171

2,787,105 12,072,066 14,859,171

2,023,047 9,673,705 11,696,752

2,023,047 9,673,705 11,696,752

7,878,680 760,244 8,192,772 16,831,696

7,878,680 760,244 7,660,712 16,299,636

4,620,797 1,192,354 8,523,914 14,337,065

4,620,797 1,192,354 7,121,834 12,934,985

1,175,272 1,175,272

1,175,272 1,175,272

626,632 626,632

626,632 626,632

Consolidated Financial assets Cash Trade and other receivables Other financial assets

Financial liabilities Trade and other payables Refundable accommodation bonds

Parent Entity Financial assets Cash Trade and other receivables Other financial assets

Financial liabilities Trade and other payables

Fair values are materially in line with carrying values.


30 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 23. Related Party Disclosures Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The parent entity is St Vincent de Paul Society Victoria Inc. The amount receivable from St Vincent de Paul Aged Care and Community Services is disclosed in Note 6 to the financial statements. St Vincent de Paul Aged Care and Community Services received the following revenue from the Society during the financial year: • sales totalling $61,151 (2008: $20,210); and • $219,252 (2008: $346,175) for the management of shared services. During the financial year, St Vincent de Paul Aged Care and Community Services paid the Society $50,000 (2008: $50,000) for the rental of the office premises at Prospect Street, Box Hill. During the financial year, St Vincent de Paul Society Victoria Inc. contributed a further $948,300 (2008: $600,304) to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9.

Note 24. Segment Reporting St Vincent de Paul Society Victoria Inc. For management purposes, the parent entity is organised into two major operating divisions, being centres of charity and conferences and councils. The divisions are the basis on which the parent entity reports its primary segment information. The centres of charity segment provides material aid free of charge to those in need and sells surplus donated goods. The conferences and councils segment provides assistance to those in need. Financial information about the parent entity’s business segments is presented in the schedule on the following page.

St Vincent de Paul Aged Care and Community Services For management purposes, the Company is organised into three major operating divisions, being Aged Care Services, Community Services and Disability Employment Services. The divisions are the basis on which the Company reports its primary segment information. The Residential Aged Care Services segment provides care and accommodation for elderly citizens and disadvantaged citizens through a mix of hostels and nursing homes.

The Community Services segment operates a range of accommodation and support initiatives for people who experience homelessness; providing help with issues such as general health concerns, drug and alcohol abuse, employment education and training options, social exclusion and isolation, and supporting victims of family violence. This segment also includes managing the delivery of care to the elderly in their homes, also known as the Community Aged Care Packages program, the management of independent living units and a day therapy centre. The Disability Employment Services segment provides supported employment for people with a disability. During the financial year, the day therapy centre was transferred from the Residential Aged Care Services segment to the Community Services segment. The prior year’s comparative figures have been reclassified to reflect this transfer and conform to changes in presentation for the current financial year. There are no inter-segment transactions. Financial information about the Company’s business segments is presented in the schedule on the following page.


St Vincent de Paul Society Victoria Inc. 31

Primary reporting – business segments Centres of Conferences Charity & Councils

Residential Aged Care

Community Services

$

$

$

$

Disability Employment Services $

Elimination Consolidated

21,915,536 273,559 313,294 22,502,389

10,892,762 774,703 548,187 508,203 7,300,500 377,638 12,320 20,414,313

193,083 10,182,721 4,007,869 317,903 108,568 863,191 16,442 15,689,777

351,632 9,576,876 701,888 167,497 191,722 10,989,615

30,752 674,195 956,475 300 25,886 27,210 1,714,818

11,468,229 21,208,495 23,359,047 4,710,057 317,903 108,568 1,838,336 876,306 12,320 63,899,261

(204,643)

393,311

(11,204)

13,615

(1,134)

189,946

(1,047,334)

5,087,688

(485,037)

472,189

(1,022)

4,026,484 (5,942,560) (1,916,076)

26,214,628

17,575,825

41,641,772

11,007,633

995,478

(1,253,625)

96,181,711 17,829,803 114,011,514

1,874,833

1,782,032

14,452,181

2,079,073

235,021

(1,253,625)

19,169,515 1,753,772 20,923,287

933,377

457,794

991,181

404,686

56,444

2,843,482

-

-

37,315

-

-

37,315

2,115,873

1,185,693

914,160

1,386,678

58,990

5,661,394

$

$

2009 Revenue Fundraising activities Government grants Sale of goods Client / resident fees Accommodation bond retentions Accommodation charge Interest received Funds transferred from Centres Sundry income Changes in value of investment Total segment revenue Other Income Net (loss)/gain on sale of property, plant & equipment Result Segment (deficit)/surplus Unallocated deficit Consolidated total deficit Assets Segment assets Unallocated Group assets Consolidated total assets Liabilities Segment liabilities Unallocated Group liabilities Consolidated total liabilities Depreciation and amortisation of segment assets Loss on sale of non-current assets classified as held for sale Acquisition of non-current segment assets

(61,151)

(7,300,500) (50,000) (7,411,651)


32 Tomorrow can be different 2008-2009 Financial Report

Notes to the Financial Statements (cont.) for the year ended 30 June 2009

Note 24. Segment Reporting (cont.) Primary reporting – business segments (cont.) Centres of Conferences Charity & Councils

Residential Aged Care

Community Services

$

$

$

$

Disability Employment Services $

Elimination Consolidated

4,695 18,534,599 391,127 49,515 18,979,936

7,559,695 515,749 358,910 537,399 6,461,900 287,629 (10,607) 15,710,675

562,720 8,921,589 3,844,418 301,175 74,394 1,153,634 14,353 14,872,283

284,083 9,146,731 686,848 190,555 205,930 10,514,147

8,133 642,361 988,215 27,679 3,266 1,669,654

8,414,631 19,231,125 19,861,514 4,531,266 301,175 74,394 2,300,394 510,693 (10,607) 55,214,585

713,921

(2,024)

845,569

(793)

(1,256)

1,555,417

868,681

1,810,301

2,029,155

1,234,131

80,583

6,022,852

23,454,292

15,293,060

42,842,854

10,275,075

879,631

(1,051,485)

91,693,427 20,412,739 112,106,166

1,476,260

1,177,856

11,868,017

1,687,723

190,744

(1,051,485)

630,600

384,090

590,262

367,854

54,509

5,349,115 1,752,748 17,101,863 2,027,315

2,085,713

411,661

7,014,977

602,683

64,030

10,179,064

$

$

2008 Revenue Fundraising activities Government grants Sale of goods Client / resident fees Accommodation bond retentions Accommodation charge Interest received Funds transferred from Centres Sundry income Changes in value of investment Total segment revenue Other Income Net gain/loss on sale of property, plant & equipment Result Segment surplus Assets Segment assets Unallocated Group assets Consolidated total assets Liabilities Segment liabilities Unallocated Group liabilities Consolidated total liabilities Depreciation and amortisation of segment assets Acquisition of non-current segment assets

Secondary reporting – geographic segment St Vincent de Paul Society Victoria Inc. operates within Australia. St Vincent de Paul Aged Care and Community Services operates within Australia.

(20,210)

(6,461,900) (50,000) (6,532,110)


St Vincent de Paul Society Victoria Inc. 33

Note 25. ECONOMIC DEPENDENCY A significant portion of the revenue of the subsidiary, St Vincent de Paul Aged Care and Community Services, is provided by the Commonwealth and State Governments in the form of grants and subsidies.

Note 26. REMUNERATION OF AUDITORS The remuneration of auditors is disclosed in Note 3. No other services were provided during the year. The auditor of St Vincent de Paul Society Victoria Inc. is Deloitte Touche Tohmatsu.

Note 27. SUBSEQUENT EVENTS Subsequent to year end, based on investment valuation reports from the bank, the Corsair Pure instrument’s principal has been impaired by a further $339,000 in comparison with the balance at 30 June 2009. No other matter or circumstance has arisen since 30 June 2009 that has significantly affected, or may significantly affect: (a) the consolidated operations in future financial years, or (b) the results of those operations in future financial years, or (c) the consolidated state of affairs in future financial years.


34 Tomorrow can be different 2008-2009 Financial Report

St Vincent de Paul Society Victoria Inc. ABN: 28 911 702 061 RN: A0042727Y 43 Prospect Street, Box Hill Vic 3128 Locked Bag 4800, Box Hill Vic 3128 Telephone: (03) 9895 5800 Facsimile: (03) 9895 5850

Statement by State Council

Email: info@svdp-vic.org.au Website: www.vinnies.org.au/vic

In the opinion of the State Council the financial report as set out on pages 2 to 33: 1. Presents a true and fair view of the financial position of the St Vincent de Paul Society Victoria Inc. as at 30 June 2009 and its performance for the year ended on that date in accordance with Accounting Standards, Urgent Issues Group Interpretations and the Associations Incorporations Act (Vic) 1981. 2. At the date of this statement, there are reasonable grounds to believe that the St Vincent de Paul Society Victoria Inc. will be able to pay its debts as and when they become due and payable. This statement is made in accordance with a resolution of the State Council, and is signed for and on behalf of the State Council by:

Jim Grealish State President Dated this 19th day of September 2009

Peter Jackson Treasurer


St Vincent de Paul Society Victoria Inc. 35

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia Tel: +61 (0) 3 9671 7000 Fax: +61 (03) 9671 7001 www.deloitte.com.au

Independent Auditor’s Report to the members of St Vincent de Paul Society Victoria Inc. We have audited the accompanying financial report of the St Vincent de Paul Society Victoria Inc. and its consolidated entities, which comprises the balance sheet as at 30 June 2009, and the income statement, cash flow statement and statement of changes in equity for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the Statement by State Council of the consolidated entity comprising the entity and the entities it controlled at the year’s end or from time to time during the financial year as set out on pages 2 to 34.

The responsibility of State Council for the Financial Report The State Council of the entity is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act (Vic) 1981. This responsibility also includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the State Council, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


36 Tomorrow can be different 2008-2009 Financial Report

Auditor’s Independence Declaration In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.

Auditor’s Opinion In our opinion, the financial report of the St Vincent de Paul Society Victoria Inc. presents a true and fair view, in all material respects, of the financial position of St Vincent de Paul Society Victoria Inc. and its consolidated entities as at 30 June 2009, and of their financial performance, their cash flows and their changes in equity for the year ended on that date in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Associations Incorporation Act (Vic) 1981.

DELOITTE TOUCHE TOHMATSU

A M Brown Partner Chartered Accountants

Melbourne, 19 September 2009


Tomorrow

can be different

St Vincent de Paul Society Victoria Inc.

St Vincent de Paul Aged Care & Community Services

Locked Bag 4800, Box Hill Vic 3128 43 Prospect Street, Box Hill Vic 3128

Locked Bag 4700, Box Hill Vic 3128 43 Prospect Street, Box Hill Vic 3128

Phone: 03 9895 5800 Fax: 03 9895 5850 Email: info@svdp-vic.org.au

Phone: 03 9895 5900 Fax: 03 9895 5950 Email: accs@svdp-vic.org.au

ABN: 28 911 702 061

ABN: 530 9480 7280

RN: A0042727Y

ACN: 094 807 280

www.vinnies.org.au


http://vinnies.org.au/files/VIC/AnnualReports/2008-2009%20Financial%20Report  

http://vinnies.org.au/files/VIC/AnnualReports/2008-2009%20Financial%20Report.pdf

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