Annual Report 2005 (VIC, TAS, SA, WA, NT)

Page 1

ANNUAL

T h e S a l va t i o n A r m y A u s t r a l i a S o u t h e r n Te r r i t o r y

REPORT

Annual Report for the financial year ending 2004/2005

Financial pressures continue despite surplus T he Salvation Army Australia Southern Territory has seen a major turn around in its end of year financial position, which showed a surplus of $2,745,000 for the 2004/05 financial year.

This compares with a deficit of $4,825,000 in the previous financial year. While expenditure on social programs increased by 5% to $344 million, revenue increased by 12% to $360 million. This was due to careful cost cutting and income growth. In the last financial year we have seen a 15% increase in our Red Shield Appeal to $25 million, a dramatic increase in our investment income contribution thanks to our MLC investment portfolio and a transfer of funds generated by our Employment Plus organisation. These increases more than made up for the down-turn in the contribution by our Family Stores. There were many challenges during the year in particular the 11% increase in the number of people seeking our welfare, homeless, domestic abuse and

rehabilitation services, to name a few. This year we assisted 1,500,000 people in these ways. Earlier this year we reached the conclusion to divest much of our aged care services. Faced with the prospect of spending a very significant amount of money upgrading facilities, The Salvation Army decided in February 2004 to cease providing mainstream care, it’s new focus being the provision of residential aged care services for those who are the most disadvantaged and marginalised. As a result we announced in March 2005 that we had signed a procurement agreement with Retirement Care Australia (RCA) in relation to 14 of the 19 aged care hostels, nursing homes, and retirement residences. Transfer of ownership of these centres took place on 1 July 2005. In addition, TriCare, a long-established aged care provider and retirement village operator, acquired the Hayville Retirement Village in Box Hill, Melbourne, on the same date. The Salvation Army retains the following aged care centres – James Barker House (Victoria), Linsell Lodge (South Australia),

Seaforth Gardens (Western Australia) and Barrington Lodge (Tasmania), and continues to provide Community Aged Care Packages and day care centres in some locations. In addition, The Salvation Army continues to provide Chaplaincy services to those aged care centres that have been divested. A significant proportion of the net proceeds generated from the sale of the 15 aged centres will contribute to maintaining and upgrading, where necessary, the four remaining aged care centres, delivering services to the aged who are economically marginalised and general services to the elderly. The disasters here and overseas have involved us in special relief activities and in turn the public has recognised our efforts and contributed generously to our appeals. The Tsunami Appeal saw approximately $3 million donated for the work of our relief teams in Southern India, Sri Lanka and Indonesia. The Eyre Peninsula Bushfire Appeal raised $1.5 million for us to distribute to the victims in South Australia. The working capital for the Australia Southern Territory

continues to be very lean. We have only 10 days working capital at any one time. While this is a slight improvement on last year, this remains a very tight position and illustrates how reliant we are on our many sources of income and the desire we have to ensure that every dollar is put to maximum use. The important contribution we received from people leaving money to us in their will was more than $15 million this year. This money is used for capital expenditure to build new centres and maintain existing facilities. The majority of our reserves are earmarked for specific projects and cannot be spent elsewhere. Our donors who want to see our work maintained even after they have passed away are very important to the continued development of our social and welfare services. For the financial summary see page 5

Gateways Opening doors that lead people back into their community For full story see page 6

How to achieve 100% employment for Australia The Salvation Army’s approach to Australia’s ongoing employment issues - Page 4

Inside

Creative Opportunities provides work for Australia’s long term unemployed. Around the nation International news Editorial opinion Fundraising Community services Territorial executive Community services Family Stores Troubled times Employment Art Life Sport

2 3 4 5 6-7 8 9 10-11 12 13 14 15 16

Today’s fact In 1884 The Salvation Army opened a ‘home’ in Carlton which catered for discharged female prisoners, prostitutes and drug addicts frequenting the opium dens of the Little Bourke Street area. In its first 12 months this women’s refuge received 300 women who were in desperate need of assistance.

The issues that hit Australians hardest in 2004/05 Australians under the pump The most recent issue to hit Australians is the one packing the strongest punch – petrol prices. These costs have been on the rise for the past 12 months and they’re not going to come down in the near future. Even though it’s fair to say that most people are feeling shorter of cash thanks to their car, or multiple cars, the real concern is with those who rely heavily on, and simply can no longer afford them. While the top 10% of income earners live on more than $1500 per week, the bottom 10% are forced to live on less than $177 per week. Out of this meagre allowance comes rent and all the other necessities that life demands, like groceries (and these costs are increasing as a result of petrol prices too), clothes and medical assistance. Add on petrol and car maintenance costs and suddenly you’re left with nothing. Also, those struggling to live above the poverty line typically cannot afford to live near train stations because rent is higher in those areas. This means they rely on their car and it’s not a new, economical machine either. Usually it’s an older and larger car that chews through the petrol. When you put all these facts together, you can see that life for many Australians is extremely difficult. Petrol prices are taking a toll on Australians and as a result The Salvation Army is experiencing an increased demand for food Continued on page 2.

Budget overview 2004/05: where our funds were spent ■ ■ ■ ■ ■ ■ ■ ■ ■

Aged care and disability support Employment, education and training Salvation Army Family Stores Homelessness and domestic violence Individual and family support Children and young people at risk Addictions and substance abuse Administration and research Allocations to/from reserves

2003/04 28% 22% 17% 11% 7% 7% 5% 3% -

2004/05 25% 27% 15% 10% 6% 6% 5% 3% 3%

Change -3% +5% -2% -1% -1% -1% -

2004/05 financial year:

Financial summary - page 5


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