Newtown Macquarie Liverpool Wollongong Canberra
T: 1800 020 030 W: www.shepherdcentre.org.au E: enquiries@shepherdcentre.org.au Facebook: /ShepherdCentre Twitter: @ShepherdCentre
Annual Report
2013
Contents About The Shepherd Centre
2
Childhood Hearing Loss
3
Chairman and CEO’s Report
4
Outcomes
8
Our Board of Directors
10
Our Executive Team
12
Income Overview
14
Expenditure Overview
15
Our Graduating Class of 2013
17
Clinical Programs & Family Services
18
Our Stories - Birth and the Early Years
23
Our Preschools
24
Our People
26
Our Stories - Preparing for School
28
Operations
30
Our Stories - Success in the Classroom and Beyond
34
Fundraising and Communications Overview
36
Our Stories - Life After School
38
Fundraising in 2013
40
Our Stories - Giving Back
44
Concise Financial Report
47
First Voice
60
Our founder, Dr Bruce Shepherd with a student of The Shepherd Centre, during the centre’s early days.
The Shepherd Centre Annual Report 2013 1
About The Shepherd Centre
Childhood hearing loss
The Shepherd Centre is a registered charity, founded in 1970 by Dr Bruce Shepherd AM and his late wife Annette, which provides a family-centred training program to teach children born deaf or hearing impaired how to develop spoken language.
The Facts
The Shepherd family’s mission - to enable children who are deaf and hearing-impaired to develop spoken language so they may fully participate in the world, and in doing so, reach their full potential - remains our organisational vision to this day. Since its establishment, The Shepherd Centre has supported more than 2000 deaf and hearing-impaired children to develop spoken language, attend mainstream schools and participate fully in society. Today, we provide a range of services to more than 400 families each year, across our five centres in NSW and the ACT. Typically, more than 90 per cent of children graduating from our world-leading Early Intervention program achieve spoken language at the same level as normalhearing children by the time they are ready for school. These outcomes have earned The Shepherd Centre an international reputation as a centre of excellence in helping children with hearing loss learn to listen and speak.
On average, one Australian child is identified with hearing loss each day. One in 300 Australian children are diagnosed with hearing loss by school age. Hearing impairment is the most common disability diagnosed at birth. The incidence of hearing loss more than doubles in the first five years of life. Over 90% of children with permanent hearing loss are born to two hearing parents. Hearing loss can completely prevent the development of spoken language in children. Early detection and support is crucial in supporting a child with hearing loss. For people without hearing loss, our hearing is ‘on’ all of the time – even when we are asleep. This is not the case for someone who is deaf, even with a cochlear implant. We listen with our brain, not our ears. The ears are only the tunnel through which sound travels to the brain.
The Shepherd Centre Annual Report 2013 3
2013
Chairman & CEO’s Report
When people ask about what we do here at The Shepherd Centre, the short answer is – “we teach children with hearing loss how to listen and speak”. But in reality, it’s so much more than that. Our internationally-renowned Early Intervention program is so successful because we focus on families; giving mums and dads (as well as siblings, grandparents and other family members!) the tools they need to teach their child to listen and speak. The reason we work so closely with families – not just the child with hearing loss – is because we know that in early childhood, the best learning happens at home with mum and dad. So we teach families how to make the most of everyday activities such as cooking, gardening, meal times (even bath time!) – in order to turn the day-to-day of normal family life into constant opportunities for their child’s learning and development. At The Shepherd Centre, we recognise that it’s not just about hearing loss. The vast majority of the more than 400 children we provided service to this year were born to hearing parents, and for most of these families, their child’s diagnosis was their very first experience of deafness. Often, parents are still dealing with the devastation of being told their child can’t hear, and the uncertainty such a diagnosis brings, whilst having to quickly make life-changing decisions about their child’s long term future - such as, whether their child will speak or use sign language? Whether they are ready to put their tiny baby through cochlear
implant surgery? What special supports might their child and family need now, and into the future? Balancing these questions, uncertainties and emotional difficulties with the day-to-day demands of being a parent to a new baby can be overwhelming for any parent, which is why we provide an integrated Child and Family Counselling service as part of our Early Intervention program. Our team of qualified counsellors work closely with our Audiologists, Ear, Nose and Throat specialists and therapists to provide not just the child, but the entire family, with the support they need to navigate this difficult period –
For most of these families, their child’s diagnosis was their very first experience of deafness.
answering questions and providing one-on-one support on everything from hearing loss to post-natal depression, and a myriad of topics in between.
them, they are hearing the intricacies of sound with the best clarity possible, and therefore able to repeat sounds and words accurately.
When it comes to hearing technologies such as hearing aids, cochlear implants and Baha devices, our paediatric audiologists are experts in their field, working alongside specialist ENT surgeons to provide the best possible surgical outcomes for every child and family, and an intensive monitoring program to ensure each child has optimal access to sound – so as they grow and develop, learning to listen to the world around
With counselling and family assistance, we are providing a safety net for families, ensuring they have the strategies they need to support themselves, and their child. Our audiologists offer a safety net for little ears, constantly watching for any deterioration in children’s hearing, and making sure devices are operating as they should. What we know is that when these vital services are combined with our AuditoryVerbal Therapy program (regular listening, speech and language therapy provided by dedicated therapists; most with a specialist three-year post-graduate qualification in addition to their Bachelors or Masters degree), the futures possible for children with hearing loss go from being great to absolutely outstanding. At the end of each year, our annual Graduation ceremony is a momentous occasion; when our five-year old children – each wearing a tiny cap and gown! – stand proudly in front of their parents, extended families, and their Shepherd Centre family, and proclaim, “We did it!”, as they graduate from our Early
Intervention program and begin their school journey. The first day of school is a milestone for any family, but for our families, it’s the culmination of years of hard work, and the realisation of parents’ dreams for their children – for their child to be able to listen and speak, to be able to attend school alongside their hearing peers, and to find independence at school, socially, and throughout the rest of their lives. We are delighted to announce that again in 2013, our graduates have achieved language, vocabulary and speech skills which are on par with those of children without hearing loss. Put simply – our graduates speak, sing and chatter away just like any other child their age, regardless of the fact that they are deaf. This remarkable achievement is testament to the hard work and dedication of each family, of our staff, and of the children themselves – and it instils such great pride in us all. Throughout these pages, you will meet our families, graduates and past graduates, and the children currently learning to listen and speak in our program. You will also hear from some extraordinary individuals whose generous contributions have helped ensure our life-changing work will continue into 2014, and long into the future – as we establish a cutting-edge new flagship centre in Sydney, capable of supporting the rapidly growing number of families turning to us for support each year.
The Shepherd Centre Annual Report 2013 5
2013
Chairman & CEO’s Report
We continue to work closely with our stakeholders as the roll-out of the Australian Government’s National Disability Insurance Scheme progresses in our service areas. A particular focus is ensuring that we fully understand our families’ needs and expectations from the new system and making sure that we can support these.
Whilst we prepare our organisation for the changes ahead, our services are, and will always be about understanding and responding to the needs of individuals. Every child and family is unique, as are the plans we make to address their needs and future goals for their child. As we continue to change the lives of children with hearing loss, we are grateful to have supporters who remain incredibly passionate and committed to our vision and our future. We were delighted to have raised $3.5 million through our fundraising and capital campaigns in 2013, with a further $1.9 million of funding received from State Governments in support of our programs and services. Our total operating revenue in 2013 was $6.9 million, a very pleasing increase over the $5.5 million achieved during 2012. As a result we were able to continue to grow our clinical services,
Michael Shepherd Chairman
invest significantly in upgrading our facilities, and maintain our investment into recruiting new supporters for our work. The year ended with a modest surplus of $92,000, in line with the strategy of the Centre. We are grateful to our incredible supporters – including our corporate, trust and foundation, community and individual donors who not only provide financial support, but also donate their time and resources, volunteering at our centres and assisting at our fundraising events.
On behalf of our families and children, we recognise and applaud the dedication and passion of our staff, who provide our families and children with immeasurable support. We gratefully acknowledge the members of our Board of Directors, who continue to invest countless hours on behalf of our families and staff into the stewardship of The Shepherd Centre. Good governance is increasingly complex and demanding, but as always their commitment to our vision continues to ensure our organisation’s steady growth, year on year. Finally, we wish to acknowledge the families and children whose courage and perseverance is the living embodiment of the Shepherd family’s vision, and the reason we are here.
Jim Hungerford Chief Executive Officer
Put simply – our graduates speak, sing and chatter away just like any other child their age, regardless of the fact that they are deaf.
The Shepherd Centre Annual Report 2013 7
Our Outcomes
Language and vocabulary results 2007-2013
The families who bring their children to The Shepherd Centre are seeking a listening and spoken-language future for their child. Our mission is to provide the very best speech and language we can for every one of these children, limited only by their potential.
The core of our service is our intensive Early Intervention program based on Auditory-Verbal Therapy. The culmination of this program, which children may enter as young as two months, is when they ‘graduate’ at approximately age five, and prepare to enter school. Incredibly, our graduating children typically have the same spoken-language ability as normally-hearing children of the same age – a testament to the incredible skill and hard work of their families and our clinicians. As a result, these children are as well prepared as possible for school: able to understand their teacher, able to join discussions in class, and able to talk with friends.
The Shepherd Centre has tracked the speech and language performance of our graduates over an extended period. We have published the language results of our ‘standard’ graduates – those who don’t have a second disability, who are mainly exposed to English rather than another language, and have joined our program soon after being diagnosed – for the last seven years. Pleasingly, the typical result for these children has been well within the ‘normal’ range of ability expected for children without hearing loss, for every one of those seven years, with a trend towards a gradual improvement over that time. However, we are focussed on supporting every child on our program, regardless of how complex their situation or their disabilities. As a result, we have also published the outcomes across all of the children who have graduated over the last three years – including those who joined our program late, who don’t have a family that speaks English at home, or who have multiple disabilities – a group that is often equal in number to our standard graduates. This result has also been wonderful – whilst slightly lower than for the standard children, the result across all of the children is also well within the normal range. Importantly the gap in outcomes (compared to just the standard graduates) has been rapidly narrowing over the last three years and now there is only a couple of points between them.
Standard score (100 = average)
Among our children we have many who have significant challenges in addition to deafness; who come from a non-English speaking background; or who may have had delays in their diagnosis or therapy that means their language development is already significantly impaired. We are determined to assist every family and child who turns to us. The language ability of these children (along with many other abilities, such as social and play skills, theory of mind and audition), is assessed throughout their time with us, but particularly at key points in each program.
120 100 80 60 40 20 0
2007
2008
2009
2010
2011
2012
2013
Normal range for typically hearing children Median Language, standard graduates Median Vocabulary, standard graduates Median Language, all graduates Median Vocabulary, all graduates
We believe that the family of every deaf child has the right to choose a listening and spoken language future for their child – and we are incredibly proud that no other centre across the globe has published results matching those above.
The Shepherd Centre Annual Report 2013 9
Our Board of Directors Our Board of Directors and Executive Team help to guide The Shepherd Centre in its mission to ensure every child with hearing loss reaches their full potential.
Michael Shepherd Chairman Our Chairman, and the brother of our founder, Dr Bruce Shepherd, Michael has been a member of The Shepherd Centre’s Board of Directors since 1985. Michael has extensive experience in financial markets and the financial services industry having held a range of senior positions including Vice Chairman of ASX Limited and Chairman of the ASX Market Rules Committee. Michael was also previously Chairman of Australian Hearing.
Peter Mattick Director Peter Mattick has a long history supporting local and international charity and community initiatives both personally and through companies Salmat and Matsal Investments. Peter became a Board Member of The Shepherd Centre in 2010 after learning about the organisation’s world-renowned programs through friend, and Chairman of The Shepherd Centre, Michael Shepherd. As a co-founder of Salmat, a leading marketing and communications company, Peter knows the importance of communication, and the vision of The Shepherd Centre, to assist deaf children achieve spoken communication with their families, resonated strongly with him.
Philip Rossi Director
Chris Ladas Director
Philip Rossi’s first experience of The Shepherd Centre was during his school days, when he became great friends with Bruce’s children, Daniel and Penny Shepherd. However, it wasn’t until his son Charlie was born and diagnosed with hearing loss in 2002 that The Shepherd Centre became a major part of Philip’s life. In 2008, Philip was thrilled to accept an offer to the Board of Directors from Dr Bruce Shepherd, and has been an extremely proud member of the Board of The Shepherd Centre ever since.
In 2006, Chris Ladas experienced two significant life changes – in partnership with his family, he took over Melissa Confectionery; and in the same year, Chris and his wife welcomed their second child, Alexander, who was born with profound hearing loss. It was shortly after this that the Ladas family was introduced to The Shepherd Centre. Chris was appointed to the Board as a parent representative in 2008, and says his appointment has enabled him to “give back” to The Shepherd Centre in a significant and meaningful way.
Fiona Fairlie Director Fiona Fairlie’s 13-yearold son was diagnosed with hearing loss at eight months, and received a cochlear implant at the age of five. As a result, Fiona has had over 12 years’ interaction with The Shepherd Centre at various levels, most critically as a parent. Fiona enjoys giving back to The Shepherd Centre as parent representative, and although many other board members are also parents of children with hearing loss, she believes she has a lot to offer from a mother’s perspective.
Robert Webster Director
Dr Hugh W Torode Director
Robert Webster became involved with The Shepherd Centre because of his longterm friendship with Dr Bruce and Mike Shepherd. Robert admired Bruce’s determination in setting up a cuttingedge organisation which delivered brilliant outcomes to children with hearing loss. When Bruce asked Robert to join the Board of The Shepherd Centre, he says he “was already hooked”. Robert’s background in politics and business, and his network in the business community have enabled him to contribute extensively to the ongoing success of The Shepherd Centre.
Dr Hugh Torode gained Fellowship at the Royal Australian College of Obstetrics and Gynaecology in 1986 and began Consultant Practice in Obstetrics and Gynaecology at Royal North Shore Hospital in 1988. He also took on a Consultant post at the Mater Hospital when it opened in 1991 and similarly when North Shore Private opened in 1998. Hugh’s son Will has hearing loss and is a former student of The Shepherd Centre. Both father and son share a love of sailing, and have committed to race together in the Sydney to Hobart to raise funds for The Shepherd Centre.
Director
The Shepherd Centre Annual Report 2013 11
Our Executive Team
Jim Hungerford CEO
Responsible for the overall management and operation of The Shepherd Centre. Creating, planning, implementing and integrating the strategic direction of The Shepherd Centre.
Yetta Abrahams Acting Director of Clinical Programs
Maureen Kludass Interim Director of Operations
Responsible for the management and delivery of our Clinical programs, including our Early Intervention Program, encompassing Auditory-Verbal Therapy, Audiology and Child and Family Counselling, as well as our First Sounds Implant Program, Group Programs and Residential Workshops.
Responsible for finance, human resources, information technology and systems management, facilities management, risk management and the direction of our Preschools program.
Tatiana Isaacs Director of Fundraising and Communications Responsible for fundraising, bequests, events, government funding liaison and administration, communications, online and social media.
Aleisha Davis Director of Clinical Programs (Maternity Leave)
Aleisha is currently on maternity leave, returning in 2014.
The Shepherd Centre Annual Report 2013 13
Where the money comes from
Where the money goes
2013 Income Overview
2013 Expenditure Overview
64% Clinical & Communications
48% Fundraising
15% Fundraising
28% Grants
6% Administration
24% Service Fees & Misc Income
Millions
Grants
Services Fees & Misc Income
Fundraising
$0
$1
$2
$3
$4
2013 2012 2011 2010
15% Supporter Recruitment
Millions
$0
$1
$2
$3
Clinical & Communications
$4
2013 2012 2011
Fundraising
2010
Administration Supporter Recruitment
The Shepherd Centre Annual Report 2013 15
Our Graduating Class of 2013 At The Shepherd Centre, one of the most anticipated moments of every year is our annual Graduation ceremony, and 2013 proved no exception. This year, we were delighted to celebrate the achievements of 31 children, 90 per cent of whom went on to attend mainstream schools alongside their typically-hearing peers (i.e.: children without hearing loss) in 2014. Our aim is that each child in our Early Intervention program will commence school with speech, language and vocabulary that is on par with their hearing classmates. We measure this using standardised tests assessing language and vocabulary. These tests have been used to measure the abilities of children without hearing loss, and enable us to compare the performance of our graduates with their hearing peers. Scores between 85 and 115 are considered to be normal for hearing children. The graph on page 9 illustrates the language and vocabulary results achieved in 2013, along with results since 2007. We are delighted to announce that our 2013 Graduates again achieved typical language and vocabulary scores on par with their hearing peers.
Our aim is that each child in our Early Intervention program will commence school with speech, language and vocabulary that is on par with their hearing classmates.
The Shepherd Centre Annual Report 2013 17
Clinical Programs & Family Services
Our Services in 2013
In 2013, we provided service to 426 children (including 249 children enrolled in our Early Intervention program), through a combination of Early Intervention, School Age and Group Programs, as well as our First Sounds Implant program, which provides for the ongoing audiological management of The Shepherd Centre’s implant recipients.
The Shepherd Centre’s programs and services focus on training parents to seize every opportunity in day-to-day life to teach their child to listen and speak.
Auditory-Verbal Therapy
Audiology Assessments
The core of the program for families at The Shepherd Centre is regular sessions for parents working with a Listening and Spoken Language Specialist, who has qualifications in Speech Pathology or as a Teacher of the Deaf. These are structured, play based, goal-directed sessions which focus on teaching skills in the areas of listening, speech, language and cognition. A total of 3,882 Auditory-Verbal Therapy sessions were provided in 2013.
Our Service Areas The Shepherd Centre provides service to families in these areas: Central Coast Western NSW Sydney ACT Murrumbidgee Southern NSW Illawarra Shoalhaven
Our audiologists are amongst the leading specialists in paediatric audiology in Sydney and across NSW, as well as Canberra and the wider ACT. They provide a range of services for infants and children, from very young babies to school aged children, and into adulthood. In 2013, 252 people received these services, including hearing assessments, speech perception testing and complete cochlear implant services.
Speech & Language Assessments
The Shepherd Centre carried out assessments during 2013 as checkpoints for each child to ensure that speech and language development is progressing as expected for their age. An assessment provides parents with an opportunity to reflect on their journey and check whether the child is able to transfer the skills they have learnt at home and in sessions to other settings and activities. Assessments also assist in identifying areas of speech and development that can be targeted at home and in therapy.
We also provide teleintervention service beyond NSW, to families in Tasmania, Singapore and Japan.
Number of Children in our Early Intervention Program
Macquarie Liverpool Wollongong
Sydney
250 200 150
Canberra
100
2013
2011
2009
2007
2006
2004
2002
2000
1998
1996
0
1994
Our Centres
1992
Our Service Areas
1990
50
The Shepherd Centre Annual Report 2013 19
Clinical Programs & Family Services First Sounds Program
The First Sounds Cochlear Implant Program is a joint initiative between The Shepherd Centre and Sydney Children’s Hospital, Randwick, offering a specialised paediatric cochlear implant program; with the invaluable assistance of our specialist Ear, Nose and Throat surgeons, Dr Phillip Chang and Dr Tom Kertesz. The goal of The First Sounds Cochlear Implant Program is to provide an integrated, family-centred approach to cochlear implantation for any children whose families are interested in the potential benefits of cochlear implants over and above current hearing devices they may be using. In 2013, 57 cochlear implants were provided as part of the First Sounds Program and The Shepherd Centre is aiming to provide 65 cochlear implants as part of this program in 2014.
Group Learning Programs
The Shepherd Centre offers a variety of group learning programs for each child and family. Although children can develop their listening, speech and language skills in a quiet therapy room, they need opportunities to practice and improve these skills in more ‘real world’ situations with the support of trained professionals. Our group programs aim to create these ‘real world’ situations that present more complex listening environments for the development of listening, speech and language skills while also giving both parents and children a chance to learn from other families. In 2013, families participated in our weekly Kidscape groups, parenting programs, school readiness sessions, ‘Talk Time’ Listening and Language development groups for preschool children, and school aged programs. Singing and music groups are also integral to the group learning program at The Shepherd Centre.
Residential Workshops
In 2013, we presented another series of Residential Workshops both in Sydney and a range of rural areas, and these remain as popular as ever. This year also saw the first workshop series in Wagga Wagga, with both a Residential Workshop and a training day for Hearing Support Teachers which was extremely well received. In addition to our week-long metropolitan workshop at the Australian Hearing Hub at Macquarie University, we also took our interdisciplinary team to Batemans Bay and Umina, as well as Wagga Wagga. Families came to us from rural areas such as Griffith, Hillston, Wallaroo and as far afield as Tasmania and Japan.
School Age Programs
A number of programs were offered as part of our School Age suite in 2013. The ‘Listening for Learning Program’ for children aged 5-12 with cochlear implants focused on developing listening skills to improve expressive language and comprehension. The ‘Clear Speech Clinic’ offered graduates of The Shepherd Centre the opportunity to focus on developing speech skills and improve identified speech errors through a combination of direct therapy and parent coaching.
The Shepherd Centre Annual Report 2013 21
Our Stories Natalia
Birth & the early years In August 2012, Rody and Giselle welcomed a beautiful baby daughter, Natalia, into their family. Shortly after she was born, Natalia was found to have hearing loss. This was later confirmed by the hospital’s audiology department. Natalia was diagnosed with a condition called Auditory Neuropathy Spectrum Disorder (ANSD), causing her hearing to be distorted. Rody and Giselle were told it was difficult to determine exactly how bad Natalia’s hearing was, so she was conservatively fitted with hearing aids at the age of three months. “Initially, our biggest concerns were Natalia not being able to live a normal life, go to a mainstream school, or to have ‘normal’ speech,” Giselle explained. “At the time, we were referred to The Shepherd Centre by the hospital, and after reading online that more than 90 per cent of their graduates had age-appropriate language skills, I knew that this was the place for us.” Natalia and her family joined The Shepherd Centre, attending Auditory-Verbal Therapy sessions on a fortnightly basis from when Natalia was three months old. However, in the months ahead, testing would show Natalia was unable to access enough sound from her hearing aids in order to be able to learn to speak. At 13 months, Natalia was diagnosed with severe-profound bilateral hearing loss, and with the support of The Shepherd Centre, Rody and Giselle made the difficult decision to proceed with cochlear implant surgery for Natalia. She received two cochlear implants at 15 months, and her family have been thrilled to note Natalia’s dramatic progress since. “Through the AVT sessions, Natalia is now able to comprehend requests using sound alone, such as ‘Let’s go!’, and ‘Wave goodbye!’,” Giselle said. “The Shepherd Centre has been amazing for our family. Their unconditional love and support for our daughter has been nothing short of miraculous. Their hard work and dedication has gotten us to where we are today. “The Shepherd Centre’s ongoing love and support will never be forgotten, and we thank you all for giving Natalia a voice.”
The Shepherd Centre Annual Report 2013 23
Our Preschools The Shepherd Centre’s Preschools, located in Casula and Wollongong, are open to all children and are dedicated to providing a quality early childhood learning experience for children with normal hearing, as well as children with a hearing loss, in safe and caring environments. Our Educational Programs cater to the individual needs of each child and include a focus on socialisation skills, language and cognition, fine and gross motor skills and music, cooking and craft activities. All activities are designed to develop each child’s social, intellectual, emotional and physical skills, informed by the Government’s Early Years Learning Framework.
Casula Preschool Liverpool
We were delighted to have yet another busy year at our Casula Preschool centre, with so many fun-filled activities keeping our children busy throughout 2013. Our Casula Preschoolers were excited to learn about recycling this year, and made a beautiful vertical garden out of milk cartons. We also celebrated Mother’s Day with a lovely morning tea with all of our mums! Later in the year, the Preschool held a Science Week, conducting experiments with eggs and vinegar, and making exploding volcanoes! All in all, we were delighted to have another wonderful year of Preschool fun.
Wollongong Preschool Wollongong
All the families at our Wollongong Preschool were so grateful for the hard work of volunteer caretaker, Bob Ross (read more on p44), who made our gardens and surrounding areas look beautiful throughout the year. We were full to overflowing with children in 2013, and catered for a total of 31 children and 27 families over the year – but what fun we had! We had the Science Centre visit Preschool with an amazing ‘Bubbles and Balloons’ show, which the children loved, especially our budding scientists. It was even more exciting when the children took turns to be encased in a giant bubble! We also had visits from the Fire Brigade (with all their flashing lights and sirens) and the Surf Life Saving Club came to discuss keeping safe around water. The children have been creating homes for dinosaurs and designing tracks for adventures with trains. We have painted, sprayed, collaged, ‘clayed’ and glittered until the carpet was almost unrecognisable – but that is all in a day’s work!
The Shepherd Centre Annual Report 2013 25
By the numbers
50.3
Full time equivalent staff
36.6yrs
Our People
3.7yrs 62% 10
The Shepherd Centre is only able to achieve such outstanding outcomes for children with hearing loss because of the compassion, dedication and expertise of our team.
Average staff age Average length of service Working in clinical services umber of Certified N Listening and Spoken Language specialists
As an organisation, we are fortunate to have the highest number of Listening & Spoken Language certified specialists in Australia; our Preschool educators are experts in their field; and our fundraising and operations staff are driven to provide the very best future for every family in our program. We are immensely proud of our team. To ensure we can continue to be an employer of choice, The Shepherd Centre regularly checks the organisation’s health by surveying staff and giving close consideration to the feedback received. In 2013, more than 90 per cent of staff agreed (or strongly agreed) with the following questions: ✔ 98% - I would recommend The Shepherd Centre as a place to work to a friend or colleague ✔ 100% - My work is meaningful ✔ 98% - My work is challenging ✔ 100% - My opinions matter ✔ 100% - My supervisor is genuinely interested in my wellbeing ✔ 91% - I have good opportunities to develop professionally
The Shepherd Centre Annual Report 2013 27
Our Stories Emerson
Preparing for School Emerson was born prematurely at 35 weeks with a bilateral cleft lip and palate along with a condition called microtia, where his ear didn’t form properly on his right side. While the full extent of his hearing loss on his right side wasn’t clear, a hearing test when he was six weeks old found Emerson also had a mild to moderate loss in his left ear. With no previous family history of either condition, mum Vanessa remembers it as a huge learning period.
the audiology team, I’m not certain we would’ve taken the plunge. But that Baha changed Emerson’s life. It opened up a whole new world of sound to him.” Even now, at five-and-a-half years old, Emerson is still discovering the magic of sound, thanks to his Baha device. “We recently went on a camping trip to test out a new tent,” Vanessa explained. “Both mornings, we woke to quite heavy rain, rain so loud I had to raise my voice in order to be heard in the tent. After getting dressed, I put Emerson’s Baha on him, and a couple of seconds afterwards he said, with surprise on his face, ‘It’s raining, Mamma!’ He couldn’t hear the loud rain pelting down on our tent without his Baha. Amazing, how this little box can change his world so dramatically.”
“Emerson and I embarked on our listening and language journey when Emerson had just turned one,” Vanessa said. “I have to be honest, in our first few sessions I felt ridiculous! Here I had my one-year-old, and with very little idea about his level of hearing loss, we were playing language games with him that felt very unnatural. “Really, who talks to a door before they open it? Who in their right mind gives objects instructions?! It took a few sessions and a couple of trips to Kidscape playgroup for all this weirdness to become so natural, and part of my everyday life.”
“The Shepherd Centre turned me, an average mum of three, into an AuditoryVerbal Therapist! They gave me the skills to move therapy out of our one hour, weekly sessions into our everyday.
Having graduated in our Class of 2013, Emerson is now a popular, attentive kindergarten student in a mainstream public school. “Emerson mixes with students of all ages and is well liked by the teachers and support staff. I’ve been told he sits beautifully during group time and listens well. I can’t say where we’d be if it wasn’t for The Shepherd Centre, because it scares me to even think about it.
The skills Vanessa learned in those initial sessions became invaluable. “The Shepherd Centre turned me, an average mum of three, into an Auditory-Verbal Therapist! They gave me the skills to move therapy out of our one hour, weekly sessions into our everyday. Something as simple as playing with blocks became a time of learning and listening for Emerson.”
“I’m proud to have been a part of The Shepherd Centre family, and even more proud to say I am the mother of a gorgeous, charming, clever boy who just happens to be deaf.
It wasn’t just about therapy, though. “Having the audiology team around was a godsend,” Vanessa remembers. “Baha! This word Baha (Bone Anchored Hearing Aid) was thrown around a few times and without the knowledge and care of
“Our family will be forever grateful. From the glimmer of hope at the start, the gentle nudges along the way, and the final product at the end.”
The Shepherd Centre Annual Report 2013 29
Operations Governance
The Shepherd Centre is a charity governed by a Board of Directors, with a Chairman and six Directors whose knowledge and expertise ensures that The Shepherd Centre: • Plans for the future and achieves its objectives in line with the organisation’s vision and mission • Complies with all relevant laws and regulations
Operations Team
The Operations Team is responsible for service delivery of the Preschool Programs, Facilities Management, Finance & Human Resources, Information Technology, Risk Management, Company Secretariat and Workplace Health & Safety.
Workplace Health & Safety
• Continues to meet financial and management performance expectations
In 2013 our Workplace Health and Safety (WHS) Committee continued to address and improve Workplace Health & Safety (WHS) practices to ensure continued safety for The Shepherd Centre’s employees, families, volunteers and visitors.
• Manages risks and safeguards the organisation’s assets, investments and sustainability
Investing for the future
For biographical profiles of our Board Members, please turn to page 10. The Shepherd Centre uses the guidelines as set out in the Corporate Governance Principles and Recommendations established by the Australian Stock Exchange (ASX) Corporate Governance Council as a basis for its governance arrangements. The Shepherd Centre is not a listed company and has no obligation to adopt these principles but is committed to good corporate governance and transparency. In 2013 the main regulatory oversight of governance standards for charities was transferred to The Australian Charities and Not-for-profits Commission (ACNC), and while some administrative requirements still remain with ASIC, a transitional period has commenced for this to be phased-out by mid-2014.
During 2013 The Shepherd Centre relocated, not just one, but two of its centres from which aged facilities into two brand new, purpose-built, state-of-the-art centres which we are very proud to deliver our services to families:
Australian Hearing Hub (AHH)
In January 2013, the staff and families previously occupying the old centre at Roseville were relocated to a brand new facility located on Macquarie University’s campus in North Ryde. By taking up this tenancy The Shepherd Centre became one of the founding members at the AHH, which provides a unique and very valuable opportunity for collaboration with other entities striving for advancements in hearing and language outcomes for children with hearing loss, by co-locating these leading specialists under the one roof. Our therapists now work side-by-side with world-leading paediatric psychologists and researchers in audiology and cochlear implants. The sale proceeds received from the disposal of the old centre in Roseville ($3.6m) are restricted by internal policy to cash reserves for the purpose of generating interest returns to meet the rental payments and outgoings required by the lease at the AHH.
The Shepherd Centre Annual Report 2013 31
Other significant investments in 2013 included:
Newtown
In December 2013, the staff and families who had outgrown the Abercrombie Street Darlington centre were relocated by The University of Sydney (under the same long-term lease conditions) to a new campus at Burren Street Newtown. The Newtown centre offers an enhanced, family-friendly experience with audiology booths, training facilities and meeting rooms; including brand new therapy rooms and a spacious playroom which is warm, bright and very welcoming to the children and their families. These facilities are modern, purpose-built and designed to be of the highest standards available. The fit-out of the new centre also included significant investments in systems such as additional audiology equipment, video conferencing systems, sound technology and smart-technology in training and meeting rooms, new cost effective phone system (VOIP) and new furniture and equipment throughout the centre to support the service needs being provided over two levels. This investment in affinity and systems was made possible by the generosity of our donors.
Clinical team
We significantly expanded the size and scope of the clinical programs team in 2013 to reflect the increased number of children turning to us for help, and the broader nature of their needs. The expenditure in our clinical programs area increased significantly by 21 per cent in 2013, and this ongoing expense will be funded by increased government and philanthropic income.
Our facilities
We provide our core services and programs to families in NSW and the ACT from five busy centres located at Macquarie, Liverpool, Wollongong and Canberra with our thriving headquarters and the largest for our families now located in Newtown. In addition we invested $390,000 in further improving our centres, our equipment and our systems. This investment enabled us to expand capacity and improve amenity. It also provided our clinical teams with advanced equipment and specialist systems, and our ongoing investment in video conferencing has improved access and collaboration between our staff across the five centres.
Supporter Recruitment
To support our increased level of clinical activity we needed many more financial supporters and donors and in response we commenced an active donor recruitment program in late 2011. During 2013 we invested a further $860,000 into this program (up from $650,000 in 2012) and the results are very pleasing, with positive returns coming in from the campaigns.
The Shepherd Centre Annual Report 2013 33
Our Stories Jonah
Success in the Classroom, and Beyond Eleven-year-old Jonah is an outgoing and sociable boy, who was diagnosed with profound hearing loss at birth. Jonah received his first cochlear implant at just six months of age, and is now in Year 6, attending mainstream school via distance education. Jonah was recently invited to present a speech at the National Press Club as part of the inaugural Power of Speech event, which celebrates the achievements of children with hearing loss. An excerpt from Jonah’s moving speech is printed below. Distinguished guests, ladies and gentlemen, Eleven years ago I was born into a world without sound. It was a world in which my mum and dad’s lips would move but nothing was spoken. A world in which my toys were quiet and bath time was silent. Mine was a world wrapped in the sounds of silence. Although I did not know it at the time, as a child born profoundly deaf, my world was soon to change forever. It all started many years earlier with one man’s dream to achieve what was considered at the time to be impossible. A humble professor by the name of Graeme Clark pursued the dream of helping restore his father’s failing hearing and bringing the freedom of sound and speech to the lives of many. The world is changed by men and women of vision. The vision to create, the vision to succeed where others have failed, and the vision to blend imagination with ingenious advances in technology. There have been many people who have continued the fight to give deaf children the freedom to hear and to give them a voice. I would like to give credit to our government, past and present, who have continued to financially support the provision of Cochlear Implants to the hearing impaired. Your support is greatly appreciated and is a far greater gift than you can probably imagine. I would like to thank the First Voice Centres around Australia who work tirelessly to raise extra funds
and provide dedicated support to kids like me and our families. You are all amazing people and I count you among the heroes in my life. To those people who have recognised the importance of this gift and generously donated your own money to see the work continue - I humbly thank you. To my family, who have supported me, encouraged me, laughed with me and cried with me, I want to thank you and say that without you, I wouldn’t be here today. Finally, I wish that I could thank Professor Clark personally for the sacrifices he has made. For the vision which burned within his heart to restore hearing to people like me. It has been said that a journey of a thousand miles begins with the first step and I count myself blessed and privileged to be part of this incredible journey of improving the lives of hearing impaired and deaf people around the world. The journey is of course not over, and I only stand here today because I have stood upon the shoulders of giants.
Today I could not imagine a world without sound. I have experienced so much, from the rushing of a roller coaster to the soft purring of a kitten, my life has been changed forever.
Today I could not imagine a world without sound. I have experienced so much, from the rushing of a roller coaster to the soft purring of a kitten, my life has been changed forever. Thank you.
The Shepherd Centre Annual Report 2013 35
Fundraising & Communications Overview The support of the community continued to be a strong pillar for The Shepherd Centre in 2013. With limited Government funding contributing to only 28 per cent of our requirements, it is only through the support of our donors that each child in our program is able to reach his or her full potential in life. Every dollar donated to The Shepherd Centre is invested in the future of children with hearing loss, allowing for social integration into the world of speech and sound; better education and employment opportunities, and a chance to contribute to the community. We are committed to building sustainable and efficient fundraising programs in 2014 and beyond to accommodate the growing demand for our services. In 2013 we achieved our strategic goals through a number of programs and initiatives, including: The Newtown Centre Capital Campaign to build our new flagship centre in Newtown. The campaign was successfully completed in December 2013 and raised over $950,000.
Robust growth – with a focus on the future Over the past four years, our Fundraising revenue has experienced a remarkable growth of 149 per cent. This is in response to a strong strategic focus on fundraising activities, to ensure the sustainability of our organisation for years to come. Major individual gifts and our individual giving direct mail program achieved the highest growth amongst all channels in 2013. This was due to our Newtown Centre capital campaign, and our ongoing commitment to acquisition activities to grow the number of active donors on our database. The generous support of our major individual donors, direct mail donors and Trusts and Foundations continue to provide 72 per cent of our overall fundraising revenue, and will continue to be areas of growth for us in 2014.
2013 Fundraising Revenue Sources
Growing our donor base to increase the number of donors contributing to our individual giving program. In 2013, we added more than 13,000 new donors to this program.
34% Major Gifts
Loud Shirt Day, our biggest annual community event, taking place in October. Loud Shirt Day aims to raise awareness and much needed funds to support children with hearing loss. In 2013, Loud Shirt Day activities helped raise more than $92,000.
23% Direct Mail 15% Trust and Foundations
The Australian Father of the Year Award, which is awarded by The Shepherd Centre to recognise the critical importance of good fatherhood to a child’s development. We were proud to announce that Corporal Ben Roberts-Smith VC MG was the winner of this award in 2013.
13% Gifts in Wills 11% Events and Corporate
The Little Voices Child Sponsorship Program, launched in 2013, is a newly created opportunity for our supporters to fund the $10,000 gap between the full cost of the annual treatment for every child and the government funding that we receive, so that no cost is passed onto the family. In 2013, we were grateful to have matched generous sponsors to eight children currently benefiting from our programs.
4% Other
The Shepherd Centre Annual Report 2013 37
Our Stories
Rosie
Life After School Twenty-two year old Rosie was born in Gunnedah in country NSW, the youngest of three spirited girls. While Rosie’s hearing loss wasn’t picked up at first, when her family discovered she had profound hearing loss, they made it their mission to ensure Rosie would be able to listen and speak just like any other normal-hearing child.
Rosie recently addressed the parents of our Graduating class after being named our 2013 Past Graduate of the Year, and gave them encouragement and advice for the road ahead. “Hearing loss doesn’t necessarily mean you won’t be able to connect and communicate with the world. Take it from me - I lived in a small country town, there wasn’t really an option for me to sign, and I’m glad there wasn’t.
Rosie remembers spending a large chunk of her childhood in transit - travelling six hours by car from her hometown to the city for regular AVT sessions. “It was exhausting, but the support, positive encouragement and guidance by the staff made every little daunting thing seem less scary and it was all so worthwhile.”
“Don’t give up hope. The road is a tough and challenging one, with plenty of heartbreak and setbacks, but there’s no doubt that with all your love, support, encouragement and positivity, your child will reap the benefits and will live a healthy, happy and normal life, like any other child, and like I am today.
After years of intensive therapy, two hearing aids, and a great deal of hard work by Rosie and her family, Rosie was able to attend mainstream school.
“When you find an organisation like The Shepherd Centre who shares your vision, goals and aspirations, it’s a life-changing experience. It’s a lovely feeling knowing that I have been able to overcome all the obstacles I have faced in my life, despite the fact that when the doctor first diagnosed me as profoundly deaf, my family and I were told that I would never be able to hear or communicate with the world.
“I just couldn’t wait to start!” Rosie explains. “I was so excited to learn, knowing I’d be comfortable in the classroom environment, and felt confident to make new friends. I was more than ready to take on whatever challenge was thrown my way. I believe this confidence was heightened by the endless amount of support, guidance and advice from the wonderful staff at The Shepherd Centre.” In recent years, Rosie received two cochlear implants as part of The Shepherd Centre’s First Sounds Program, and is now studying at University.
“Being able to speak and to hear all the amazing sounds this beautiful world has to offer is literally music to my ears. It’s a huge credit to the Early Intervention programs offered “My proudest achievement to date is that I am now by The Shepherd Centre, who give such unfailing studying Interior Design. It’s my absolute dream support and really do provide families with deaf job, and I never thought that it would be possible. children the best chance at a remarkable life.” “My other proud accomplishment is that I have travelled to Europe for five months on my own, a journey most people wouldn’t think that me, a profoundly deaf girl, would be able to handle independently.”
The Shepherd Centre Annual Report 2013 39
Fundraising in 2013 Newtown Centre Capital Campaign A recent redevelopment project of The University of Sydney’s Abercrombie Street sites meant that after 14 years at our beloved Darlington centre, The Shepherd Centre needed to relocate to new premises in Newtown. We are incredibly thankful to the University for kindly agreeing to fund the bulk of our capital and relocation costs, however, in order to provide the customised fit-out and facilities that we needed for our new premises, and expand our facilities to accommodate growing demand, The Shepherd Centre embarked on an ambitious campaign to raise $950,000. We knew raising this level of funding would be a challenge, but we also had great belief in our vision of a bright and beautiful new centre, custom-built to provide both the best in cutting-edge technology, and a warm and welcoming home for families and children. We were delighted to succeed in this campaign, and wish to acknowledge in particular, two incredibly generous donors whose support was instrumental in helping us achieve our goal. We wish to express our most heartfelt thanks to Stanley and Charmaine Roth, who matched every dollar donated to our Newtown centre campaign with a dollar of their own – up to an incredible $475,000 – and in doing so, made our vision a beautiful reality. The Roths’ support of our Newtown centre was in memory of their parents, Ann and Henry Roth and Maisie and Andre Winkler. Our centre will proudly carry their names as ‘The Roth-Winkler Campus for Listening and Spoken Language’, honouring their legacy and commemorating the Roths’ giving spirit for years to come.
Individual Major Giving In 2013, individual major gifts continue to be our largest fundraising income stream. Our donors helped fund essential technology and services such as the purchase of audiology equipment, video conferencing facilities and Auditory-Verbal Therapy tools; the provision of counselling services, our Residential Workshop program, and research support, to name just a few.
Gifts in Wills In 2013, we received more than $365,000 in additional funding due to the generosity of supporters who chose to leave a long-lasting legacy by mentioning The Shepherd Centre in their Will. This wonderful group of people not only looked after their loved ones but ensured a bright future for the many children who will attend our centre in the years to come. Leaving a gift to The Shepherd Centre in your Will is easy. If you would like to provide a brighter future for children with hearing loss by remembering The Shepherd Centre in your Will, we recommend that you speak to your solicitor about making this decision.
Direct Mail program Throughout 2013, we received over 25,000 gifts as a result of several direct mail campaigns to our donors. The year began with an appeal which featured Max’s story and his successful transition from attending The Shepherd Centre to his first day at ‘big school’ with his twin sister. In April, donors and supporters were touched by our appeal featuring four-year old Emerson (see Emerson’s story on p29), who was born with microtia, as well as hearing loss in his left ear. With The Shepherd Centre’s help Emerson now has a bright future. The last appeal of the year told Scarlett’s story from the perspective of her loving parents. From the devastation of her hearing loss diagnosis, through to looking forward to what’s in store for their daughter – our donors were delighted to learn that hearing loss won’t limit Scarlett’s life choices. These three appeals alone raised over $452,000, with the overall total for the direct mail program exceeding $660,000. We were also thrilled to add more than 13,000 new donors to our supporter family. ins.1st.right 98mm
back - 100mm
...then we found out about The Shepherd Centre’s Early Intervention Program.”
cover - 100mm
Please donate today to help children like Scarlett say their first words.
- Scarlett’s parents Meredith & Dean
“Scarlett’s hearing loss was a shock. We were devastated...
ins.1st.left - 98mm
...we just assumed that one day Scarlett would need to go to a special needs school for deaf kids...
www.shepherdcentre.org.a u
The Shepherd Centre Annual Report 2013 41
Fundraising in 2013 Corporate supporters
Trusts & Foundations We would like to acknowledge the wonderful support of the following Trusts and Foundations who contributed generously to The Shepherd Centre in 2013.
Gandel Philanthropy proudly supported The Shepherd Centre’s Residential Workshop Program for the first time in 2013. Gandel Philanthropy’s grant allowed families living in rural and remote areas of Australia not only to access to The Shepherd Centre’s therapy and counselling sessions for their children, but most importantly gave them the opportunity to spend time with our range of hearing health experts, all under the one roof. The Cecilia Kilkeary Foundation supported our Audiology booth in Newtown Centre with muchneeded equipment to ensure adequate testing for children who are deaf or hearing impaired. The Lord Mayor’s Charitable Foundation generously supported our children’s speech and language assessments, which: • Provide parents with an opportunity to reflect on their family’s journey; what was achieved and what is planned for the future. • Provide valuable information to their therapist, which is used to help plan sessions and set appropriate goals. • Ensure each child is progressing as expected.
The Shepherd Centre was again delighted to be Westfield Chatswood and Westfield Liverpool’s Charity Partner in 2013. Westfield organised a number of fantastic activities to support the children at our centres including Givability days, Facebook campaigns and gift wrapping days in return for donations. Tony Nash, CEO of Booktopia generously donated 500 books as Christmas gifts for each child at our centres. Our families have greatly appreciated Booktopia’s wonderful generosity to ensure that each child received a special book from Santa.
Volunteer profile: Sophia Arab, one of the many volunteers who supported our gift wrapping drive: “I had heaps of fun on the day, the shoppers were very supportive of The Shepherd Centre’s cause. All in all, it was a lovely and a rewarding experience.”
Corporate support in 2013 was a growth area with over $150,000 raised in support of The Shepherd Centre’s programs and events. We were delighted to work with a number of new organisations who have recently joined our quest to give the gift of speech and sound to every child with a hearing loss. Cochlear continue their amazing support of The Shepherd Centre, and we are delighted to announce they will be the major sponsor of First Voice’s upcoming Power of Speech event, to be held at the National Press Club in March 2014. Cochlear also sponsored the annual Australian Father of the Year Award, which was this year awarded to Corporal Ben Roberts-Smith VC MG. Pioneer Credit came on board for the first time in 2013 to sponsor three children currently in our Early Intervention program. Pioneer Credit staff are also eagerly supporting us with many undertaking their own fundraising events to generate additional support for The Shepherd Centre. Ozforex contributed $25,000 to The Shepherd Centre in 2013 through their annual Dress Up Day. Interlink Roads and the ASX supported us in 2013 through our Little Voices Child Sponsorship Program. Both organisations receive quarterly updates on the progress of the child they support, walking the Early Intervention journey side-by-side with our families as they reach some of their most important milestones – such as their child’s first word, or saying their name for the first time.
Community Fundraising & Events In 2013, Events and Community Fundraising helped generate more than $100,000, thanks to the efforts of our supporters. The majority of this income came from our annual fundraiser, Loud Shirt Day, and those who volunteered to slog it out as part of the City to Surf event. Loud Shirt Day took place on Friday 18th October, and was a day full of fun and laughter. In total, Loud Shirt Day raised over $92,000 which is an amazing effort from all our wonderful hosts. Loud Shirt Day also generated $241,500 in pro bono media exposure for all First Voice Centres across Australia. Sunday, August 10th saw more than 30 keen runners and walkers pound the pavement for a gruelling 14 kilometre stretch from Sydney CBD’s Hyde Park to beautiful Bondi Beach as part of the annual City2Surf. Looking like true professionals in their Shepherd Centre running singlets the group raised an incredible $15,000.
Government Support The Shepherd Centre continues to receive support from the government towards our services. In 2013 we received over $1.9m from the Department of Ageing, Disability and Home Care in NSW and the Department of Education and Training in NSW and the ACT. We are grateful for their ongoing support.
The Shepherd Centre Annual Report 2013 43
Our Stories Bob
Giving Back Life changed for Bob Ross in September 2009 when he attended The Shepherd Centre in Wollongong to help affix a ‘Support Group’ notice to the activities board. The 67-year-old, who became the centre’s volunteer caretaker, said “I’ve never looked back”.
Bob, who spends most days at the centre, enjoys chatting with the children’s parents as they pick up and drop off their little ones. Leaving a gift in his Will to an organisation he values highly was “a natural step”.
Apart from his care of the centre’s gardens and acting as the centre’s all-round chief barbecue operator, Bob has generously remembered The Shepherd Centre in his Will.
“The kids are what made my life in there. None of it was planned, everything that’s happened has happened under its own steam,” Bob said. “When I go in there I’m doing something to help the cause. I feel good about me and what I do with The Shepherd Centre.”
Bob says that after he had bilateral cochlear implants for his own hearing loss, which became profound as a result of noise exposure, he was looking for some direction in his life. “I lived in a horrid state for four to five years, totally deaf, and being forced into early retirement at 60 years of age,” Bob said.
Supporters like Bob are so important to The Shepherd Centre. While not everyone can devote their time as a volunteer like Bob, many of us can make a provision in our Will to ensure a bright future for children with hearing loss.
“Switch on (of the cochlear implants) was awesome. I thought then that I’d been given a second chance at life and I thought if I can help, I will. I’ve always been a very active man. When I got involved in The Shepherd Centre, I got this feeling of being loved and needed and that’s good for an old bloke who lives on his own!”
The Shepherd Centre Annual Report 2013 45
The Shepherd Centre ABN 61 000 699 927
Concise Financial Report For the Year Ended 31 December 2013
Relationship of the concise financial report to the full financial report The concise financial report is an extract from the full financial report for the year ended 31 December 2013. The financial statements, specific disclosures and other information included in the concise financial report are derived from, and consistent with, the corresponding full financial report of The Shepherd Centre. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of The Shepherd Centre as the full financial report. A copy of the full financial report and auditor’s report will be sent to any member, free of charge, upon request; by contacting the registered office of The Shepherd Centre on 02 9370 4401.
Contents Directors’ Report
48
Auditor’s Independence Declaration
50
Concise Financial Statements: Consolidated statement of profit or loss and comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows
52 53 54 56
Directors’ Declaration
58
Independent Auditor’s Report
59
The Shepherd Centre Annual Report 2013 47
The Shepherd Centre Director’s Report ABN 61 000 699 927
Director's Report Your directors present their report on the company for the financial year ended 31 December 2013.
After balance day events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future periods.
The names of the directors in office and meetings at any time during the year are:
Mr Michael H Shepherd Dr Hugh W Torode Hon. Robert J Webster Mr Philip Rossi Mr Chris Ladas Mr Peter W Mattick Mrs Fiona Fairlie (appointed May 2013)
Directors' Meetings Number Number eligible to attended attend 6 6 6 5 6 4 6 5 6 4 6 4 4 3
Environmental Issues The company's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory. Auditors Independence Declaration The lead auditor's independence declaration for the year ended 31 December 2013 has been received and can be found on page 59. Sign off details Signed in accordance with a resolution of the Board of Directors:
The Director's have been in office since the start of the financial year to the date of this report unless otherwise stated. Company Secretary The position of company secretary was held by Maureen Kludass at the end of the financial year.
Director ........................................................... Mr Michael H Shepherd, Chairman
Dividends Paid or Recommended Under the company's constitution, The Shepherd Centre is prohibited from paying dividends.
Dated this
Directors benefits No director has received or become entitled to receive a benefit, included in the aggregate amount of emoluments received or due and receivable by directors as shown in the financial statements or the fixed salary of a full employee of The Shepherd Centre.
day of
Director .......................................................... Mr Philip Rossi, Director
2014
Members' Guarantee The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting any outstanding obligations of the entity. At 31 December 2013, the total amount that members of the company are liable to contribute if the company is wound up is $360 (2012:$320). Principal Activity The principal activity of The Shepherd Centre is to help deaf and hearing impaired children reach their language, listening and speech potential and integrate into their local community, school and the hearing world. No significant change in the nature of this activity occurred during the financial year. Significant Changes in State of Affairs No significant changes in the company's state of affairs occurred during the financial year. Likely Developments The company expects to maintain the present status and level of operations and hence there are no likely developments in the company's operations.
3
The Shepherd Centre Annual Report 2013 49
Auditor’s independence declaration
The Shepherd Centre Discussion and analysis of the financial statements Discussion and analysis of the financial statements ABN 61 000 699 927
Information on The Shepherd Centre's Concise Financial Report This discussion and analysis is provided to assist members in understanding the concise financial report. The discussion and analysis is based on The Shepherd Centre's financial statements and the information contained in the concise financial report has been derived from the full 2013 financial report of The Shepherd Centre.
Statement of Profit or Loss and Other Comprehensive Income
The profit after income tax attributable to members for the year of $92K is $980K higher than the 2012-13 results. This is mainly due to the strong revenue growth in the fundraising functions of donations (29% or $800K) and grants (some non-recurring). Also, a significant increase of more than 11% in the number of children participating in the Early Intervention Program (249 in Dec 2013 compared to 223 in Dec 2012) contributed to the upward trend in revenue. A net gain of $200K was accounted for the disposal of surplus assets (Roseville and Darlington) however this is a oneoff and should be discounted when evaluating income growth.
Statement of Financial Position
Total assets increased by $1 million to $7,641,700 representing an increase of 16%. This increase was mainly attributable to the following: – Recognition of the lease incentives ($700K) for the new Macquarie centre at the Australian Hearing Hub – Profit on sale of disposal of the Roseville centre ($300K), a realised gain now held in restricted cash reserves – Increase in inventory ($120K) Total liabilities increased by $970K mainly due to an increase in deferred lease incentives and employee leave entitlements. – Recognition of the lease incentive liability ($700K) as the incentive asset ($700K) is amortised over future years – Inventory of $120K was not paid as at balance date – Increased to employee entitlements of $100K
Statement of Changes in Equity The retained surplus of the members increased by $450K to 31 Dec 2013, with $92K being the operating surplus for the year and $360K transferred from the Asset Revaluation Reserve following the disposal of the Roseville property.
Statement of Cash Flows The Shepherd Centre experienced an increase in operating cash flows of some $700K from 2012. In Jan 2013, the staff and families previously occupying the old centre at Roseville were relocated to a brand new leased facility located on Macquarie University’s campus in North Ryde. The sale proceeds received from the disposal of the old centre in Roseville ($3.6m June 2013) are restricted by internal policy to cash reserves for the purpose of generating interest returns to meet the rental payments and outgoings required by the lease at the AHH. As a result, the closing cash balance, including transactions from investing activities, increased by $3.5 million.
The Shepherd Centre Annual Report 2013 51 6
Statement of Profit or Loss and Other The Shepherd Centre Comprehensive Income
Statement of Financial Position
ABN 61 000 699 927
ABN 61 000 699 927
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
For the Year Ended 31 December 2013
As At 31 December 2013
REVENUE
Operating activities Donations Government subsidies Interest received Member subscriptions Rental income Sundry revenue Total operating activities revenue
Note 5(b)(i)
2013
$
The Shepherd Centre
2012
3,537,775 1,977,797 81,307 275 8,836 1,313,205 6,919,195
2,746,106 1,669,420 22,816 291 8,356 1,046,944 5,493,933
204,150
4,696
7,123,345
5,498,629
90,199 309,138 4,517,911 1,207,614 906,069
193,759 321,928 3,904,591 1,175,260 790,804
Total Operating Expenditure
7,030,931
6,386,342
Profit/(loss) before income tax Income tax expense
92,414 92,414
(887,713) (887,713)
Other comprehensive income: Net gain on revaluation of land and buildings
-
288,592
Total comprehensive income for the year
92,414
(599,121)
Other income Gain/(loss) on Sale of property, plant and equipment
Total Income EXPENDITURE
Audit, legal and consulting expenses Depreciation and amortisation Employee benefits expense Fundraising campaign and event expenses Other expenses
Profit for the year after income tax
5(b)(ii)
2013
2012
3,952,749 438,655 119,750 173,690 4,684,844
438,227 235,784 215,064 889,075
146,250 2,678,784 131,851 2,956,885
5,559,202 129,893 5,689,095
7,641,729
6,578,170
1,005,931 393,271 58,270 1,457,472
582,484 281,031 59,300 922,815
506,250 74,296 282,476 863,022
85,788 340,746 426,534
TOTAL LIABILITIES
2,320,494
1,349,349
NET ASSETS
5,321,235
5,228,821
4,098,623 1,222,612
3,646,075 1,582,746
5,321,235
5,228,821
ASSETS
$
Note
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other assets TOTAL CURRENT ASSETS
3
NON-CURRENT ASSETS Trade and other receivables Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
$
$
LIABILITIES
CURRENT LIABILITIES Trade and other payables Short-term provisions Other financial liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade and other payables Long-term provisions Other financial liabilities TOTAL NON-CURRENT LIABILITIES
EQUITY
Retained earnings Reserves
TOTAL EQUITY
Note 3: The sale proceeds of $3.6m received in June 2013 from the disposal of the old Roseville Centre are restricted to cash reserves for the purpose of generating interest returns to meet the rental payments and outgoings required by the lease at the AHH (in accordance with the budget policy).
7
The Shepherd Centre Annual Report 2013 53
8
Statement of Changes in Equity
Statement of Cash Flows
ABN 61 000 699 927
ABN 61 000 699 927
The Shepherd Centre
The Shepherd Centre
Statement of Changes in Equity For the Year Ended 31 December 2013
2013
Balance at 1 January 2013 Surplus attributable to members of the entity Transfer from asset revaluation reserve realised on property sold during the year
Balance at 31 December 2013 2012
Balance at 1 January 2012 Surplus attributable to members of the entity Transfer from asset revaluation reserve realised on property sold during the year
Balance at 31 December 2012
Statement of Cash Flows Retained Surplus $ 3,646,075 92,414 360,134
(360,134)
-
-
4,098,623
602,448
620,164
5,321,235
4,533,788 (887,713)
673,990 288,592
Asset Realisation Reserve $ 620,164 -
For the Year Ended 31 December 2013
Asset Revaluation Surplus $ 962,582 -
620,164 -
Total
-
-
-
962,582
620,164
5,228,821
1,177,345 1,918,497 (6,219,724) 81,307 3,537,775
1,924,166 1,610,120 (6,535,182) 22,816 2,746,106
495,200
(231,974)
CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment Payment for intangible asset Purchase of property, plant and equipment Net cash used by investing activities
3,513,046 (25,212) (468,512) 3,019,322
(17,435) (551,559) (568,994)
CASH FLOWS FROM FINANCING ACTIVITIES: Net increase (decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of year Cash and cash equivalents at end of financial year
3,514,522 438,227 3,952,749
(800,968) 1,239,195 438,227
Note
4
Net cash provided by (used in) operating activities
5,827,942 (599,121)
-
2012
CASH FLOWS FROM OPERATING ACTIVITIES: Other income Operating grant receipts Payments to suppliers and employees Interest received Gifts and donations received
$ 5,228,821 92,414
3,646,075
2013
$
$
The accompanying notes form part of these concise financial statements.
9
The Shepherd Centre Annual Report 2013 55
10
Notes to the Concise Financial Statements
(continued)
For the Year Ended 31 December 2013
Notes to the Concise Financial Statements
Note 5: Information and Declarations to be Furnished under the Charitable Fundraising Act 1991
The Shepherd Centre
(a) Fundraising appeals conducted during the financial year Shepherd Voice newsletters including the major appeal for the new centre at Burren Street Newtown (changing the world appeal), Back to School, Christmas, donor care, regular giving, supporter survey and tax appeals. Plus new donor recruitment through acquisition/donor recruitment program.
ABN 61 000 699 927
Notes to the Concise Financial Statements For the Year Ended 31 December 2013
Note 1: Summary of Significant Accounting Policies The financial statements cover The Shepherd Centre as an individual entity, incorporated and domiciled in Australia. The Shepherd Centre is a company limited by guarantee. The company is recognised as a Public Benevolent Institution and Deductible Gift Recipient by the Australian Taxation Office.
Note 2: Basis of Preparation of the Concise Financial Report The concise financial report has been prepared in accordance with Accounting Standard AASB 1039: Concise Financial Reports, and the Corporations Act 2001. The financial report of The Shepherd Centre complies with all Australian equivalents to International Financial Reporting Standards in their entirety. The Shepherd Centre is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. The currency used in the financial report is Australian dollars.
Note 3: Surplus cash restricted to generate revenue for future rent outflows The sale proceeds of $3.6m received in June 2013 from the disposal of the old Roseville Centre are restricted to cash reserves for the purpose of generating interest returns to meet the rental payments and outgoings required by the lease at the AHH (in accordance with the budget policy).
2013
$
Note 4: Reconciliation of Cash Flow from Operations (after Income Tax) Profit for the year
2012
$
Non-cash flows included in the profit/(loss) for the year Depreciation and amortisation expense Fair value of lease incentives received
92,414
(887,713)
309,138 (450,000)
321,928 -
Changes in assets and liabilities - (Increase)/decrease in trade receivables and other assets - (Increase)/decrease in inventories - Increase/(decrease) in trade payables and accruals - Increase/(decrease) in grants in advance - Increase/(decrease) in provisions
(307,747) (119,750) 929,697 (59,300) 100,748
4,212 357,841 (59,300) 31,058
Cashflow from operating activities
495,200
(231,974)
Note (b) Details of aggregate gross income and total expenses of fundraising appeals INCOME Major gifts Events Appeals Bequests Acquisition Other Total Fundraising Revenue 5(b)(i)
2013
2012
1,558,676 252,611 691,334 365,081 492,835 177,238 3,537,775
1,014,578 195,720 555,411 430,061 369,503 180,833 2,746,106
EXPENDITURE Events Appeals Bequests Acquisition Other Total Fundraising Expenses
62,876 214,466 868,567 61,704 1,207,614
245,726 162,206 7,969 649,554 109,804 1,175,260
Net Surplus obtained from fundraising appeals
2,330,161
1,570,846
(c) Statement showing how funds were applied for charitable purposes Net surplus obtained from fundraising appeals
2,330,161
1,570,846
(4,805,209) (945,170) (918,512) (4,338,730)
(4,190,056) (1,021,026) (519,116) (4,159,352)
1,977,797 1,330,685 (1,030,248)
1,669,420 1,078,407 (1,411,525)
$
5(b)(ii)
Applied to charitable purposes in the following manner: Expenditure on direct services and administration Expenditure on fundraising administration Capital Expenditure The shortfall was provided from the following sources: Government grants Other income Shortfall of current year funding
2013 $
(d) Comparison of certain monetary figures and comparisons Dollars of gross fundraising income generated from each dollar of direct fundraising expenditure
(3,537,775 1,207,614)
$
2013
Ratio / % 2.93
Dollars of gross fundraising surplus generated from each dollar of fundraising expenditure
(4,805,209 - 945,170) (1,207,614 + 945,170)
1.79
Fundraising administration costs as a percent of total services and administration costs
945,170 (4,805,209 + 945,170)
16.44%
12
11
The Shepherd Centre Annual Report 2013 57
Directors’ The Shepherd Declaration Centre ABN 61 000 699 927
Directors' Declaration
Independent Audit Report to the members of The Shepherd Centre
In accordance with a resolution of the Directors of The Shepherd Centre, the directors of the company declare that the concise financial report of The Shepherd Centre for the financial year ended 31 December 2013, as set out on pages on pages 52 to 57, are in accordance with the Corporations Act 2001 and: a) complies with Australian Accounting Standard AASB 1039: Concise Financial Reports; and b) is an extract from the full financial report for the year ended 31 December 2013 and it has been derived from, and is consistent with, the full financial report of The Shepherd Centre. 2. In the directors' opinion, there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable.
On behalf of the directors
Director .................................................................................... Mr Michael H Shepherd, Chairman Dated this
day of
2014
The Shepherd Centre Annual Report 2013 59
THE FUTURE IS HEAR The Shepherd Centre is a proud member of First Voice, a national alliance of member organisations whose primary focus is the provision of listening and spoken language for children who are deaf or hearing impaired. Established in 2010, First Voice plays a leadership role in shaping public policy and funding decision-making relating to hearing impaired children. First Voice evolved from the former Alliance for Deaf Children, which was established in 2003. There are five founding members of First Voice and an affiliated organisation in New Zealand:
Despite limited resources, First Voice has emerged as a strong, active and influential organisation within the early intervention sector. Its lobbying efforts were instrumental in securing recurrent federal government funding for early intervention services for not only hearing impaired children, but across a range of other disability areas. For more information about First Voice, please visit www.firstvoice.org.au
The Shepherd Centre Annual Report 2013 61