2007-2008 Financial Report by Dianne Ballestrin

2007-2008 Financial Report

This time itâ&#x20AC;&#x2122;s personal

Contents 2 3 4 5 6 34 35

Income Statement Balance Sheet Statement in Changes in Equity Cash Flow Statement Notes to the Financial Statements Statement by State Council Independent Auditorâ&#x20AC;&#x2122;s Report

St Vincent de Paul Society Victoria Inc.

Income Statement for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

8,414,631 19,231,125 19,861,514 7,717,922 (10,607) 55,214,585

6,772,869 17,368,125 17,624,855 7,653,183 7,542 49,426,574

7,559,695 520,444 18,893,509 1,214,664 (10,607) 28,177,705

5,766,370 287,429 16,585,171 1,072,166 7,542 23,718,678

2(f)

1,555,417

20,304

711,897

27,385

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

(12,406,749) (936,243) (2,805,824) (16,148,816)

(11,547,447) (760,733) (2,794,277) (15,102,457)

(10,822,719) (936,243) (2,804,228) (14,563,190)

(9,865,753) (760,733) (2,794,277) (13,420,763)

40,621,186

34,344,421

14,326,412

10,325,300

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

(7,257,754) (13,469,512) (8,120,568) (2,225,752) (31,073,586)

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

(7,270,449) (2,225,752) (9,496,201)

(50,747,150)

(46,176,043)

(26,260,030)

(22,916,964)

6,022,852

3,270,835

2,629,572

829,099

Note Revenue Fundraising Government Grants Sale of Goods Other Revenue Changes in Value of Investment Total Revenue Other Income Net Gain on Sale of Property, Plant and Equipment Operating Expenses Cost of Sales Fundraising/Public Relations Administration

Total funds available for client activities Client Services Expenses People in Need Services Aged Care Services Homelessness & Housing Services Support Services

3(d) 3(e) 3(f) 3(g)

Total Expenses Surplus for the period

The accompanying notes form part of these financial statements

2007-2008 Financial Report

Balance Sheet as at 30 June 2008 Note Current Assets Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets

5 6 7 8 10

Non-current assets classified as held for sale

Total Current Assets Non-Current Assets Financial assets Property, plant & equipment Investments in controlled entities Intangibles Total Non-Current Assets

8 12 9 13

Total Assets

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

10,101,449 1,020,939 117,782 34,520 733,184 12,007,874 -

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

4,072,228 557,905 97,190 34,520 512,958 5,274,801 -

20,823,337

12,007,874

6,918,225

5,274,801

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

21,019,080 57,790,859 14,119,095 92,929,034

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

8,019,080 21,272,509 51,805,739 60,287 81,157,615

112,106,166

104,936,908

89,557,670

86,432,416

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

14 15 16

2,613,057 3,888,249 10,134,903 16,636,209

1,774,237 3,506,988 9,718,435 14,999,660

1,219,183 1,007,338 339,447 2,565,968

593,046 923,806 432,710 1,949,562

Non-Current Liabilities Provisions Total Non-Current Liabilities

465,654 465,654

621,397 621,397

88,148 88,148

208,872 208,872

Total Liabilities

17,101,863

15,621,057

2,654,116

2,158,434

Net Assets

95,004,303

89,315,851

86,903,554

84,273,982

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

35,727,327 53,588,524 89,315,851

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

14,371,867 69,902,115 84,273,982

95,004,303

89,315,851

86,903,554

84,273,982

Equity Contributed equity Reserves Retained earnings Total parent entity interest Total Equity

The accompanying notes form part of these financial statements

St Vincent de Paul Society Victoria Inc.

Statement of Changes in Equity for the year ended 30 June 2008 Consolidated Entity

Asset Revaluation Reserve $

Reserves Capital Profits Reserve $

54,856,246 3,270,835 (4,538,557) 53,588,524

30,860,734 30,860,734

6,022,852 (307,699) 2,270,200

Contributed Equity

Retained Earnings

$ Balance at 1 July 2006 Surplus Transfer to Bequest Reserve Balance at 30 June 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

Total

Fund-aFuture Reserve $

198,036 198,036

4,538,557 4,538,557

130,000 130,000

86,045,016 3,270,835 89,315,851

(2,270,200)

307,699 -

6,022,852 -

(334,500)

100

61,573,877

28,256,034

198,036

4,846,256

130,000

95,004,303

Contributed Equity

Retained Earnings

Fund-aFuture Reserve $

Total

Reserves Capital Profits Reserve $

Bequest Reserve

Asset Revaluation Reserve $

Balance at 1 July 2006 Surplus Transfer to Bequest Reserve Balance at 30 June 2007

70,209,645 829,099 (1,136,629) 69,902,115

13,235,238 13,235,238

1,136,629 1,136,629

83,444,883 829,099 84,273,982

Surplus Transfer to Bequest Reserve

2,629,572 (165,419)

165,419

2,629,572 -

At 30 June 2008

72,366,268

13,235,238

1,302,048

86,903,554

At 30 June 2008

Parent Entity

The accompanying notes form part of these financial statements

Bequest Reserve

2007-2008 Financial Report

Cash Flow Statement for the year ended 30 June 2008

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

20(b)

Cash flows From Investing Activities: Proceeds – sale of property, plant and equipment Proceeds from investments Payment for property, plant and equipment Payments for intangible assets Payments for investments Capital contributed to subsidiaries Net cash 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/(used in) financing activities Net increase/(decrease) 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

20(a)

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

41,843,518 6,290,183 (45,275,431) (10,195) 2,181,589 5,029,664

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

17,898,733 6,290,183 (22,911,510) 830,912 2,108,318

4,773,560 2,000,000 (10,092,228) (86,836) (984,350) (4,389,854)

836,213 (7,521,329) (46,743) (8,019,080) (14,750,939)

1,293,972 (2,446,612) (50,762) (480,920) (600,304) (2,284,626)

724,374 (1,223,732) (12,631) (6,019,080) (945,910) (7,476,979)

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

4,092,945 (4,431,557) -

486,483

(338,612)

3,413,355 10,101,449

(10,059,887) 20,161,336

548,568 4,072,228

(5,368,661) 9,440,889

13,514,804

10,101,449

4,620,796

4,072,228

The accompanying notes form part of these financial statements

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements for the year ended 30 June 2008 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-forprofit 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 20 September 2008.

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. Details of the impact of the adoption of these new accounting standards are set out in the individual accounting policy notes set out below. The Group has also adopted the following Standards as listed below which only impacted on the Group’s financial statements with respect to disclosure: • AASB 101 ‘Presentation of Financial Statements (revised October 2006) • AASB 7 ‘Financial Instruments: Disclosures’ 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.

2007-2008 Financial Report

(a) Principles of Consolidation The combined financial report 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 decisionmaking 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.

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: â&#x20AC;˘ the Group obtains control of the grant funds or the right to receive the grant funds; â&#x20AC;˘ it is probable that the economic benefits comprising grants will flow to the Group; and â&#x20AC;˘ the amount of the grant can be measured reliably. Government grants are recognised as revenue when the entity gains control of the funds.

All inter-entity balances and transactions between entities in the economic entity have been eliminated on consolidation.

Accommodation bonds received from incoming residents are held in trust for each individual resident and are recognised as a 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.

(b) Revenue

Resident contributions are recognised when the service is provided.

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. Revenue from the sale of goods is recognised upon delivery of the goods to customers. Government grants are principally of a recurrent or capital nature and intended to fund ongoing operations or asset acquisitions.

Revenue from donations and bequests is recognised when received into the Gift Account. 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 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 and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. 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.

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Note 1. Summary of Significant Accounting Policies (cont.) (e) Financial Instruments Financial Assets All financial assets are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. Where an asset is acquired at no cost, or for a nominal cost, the cost is its fair value as at the date of acquisition.

Held to maturity investments These are investments that have fixed maturities and it is the Groupâ&#x20AC;&#x2122;s intention to hold these investments to maturity. Any investments held to maturity by the Group are stated at amortised cost using the effective interest method.

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 Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Term Deposits

Financial Liabilities Financial liabilities, including loans and borrowings, are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Impairment At each reporting date, State Council assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the income statement.

(f) Accommodation Bonds Accommodation bonds received from incoming residents are held in trust for each individual resident and are recognised as a 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.

(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 where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cashflows 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 as operating cash flows.

Investments in term deposits are measured on the cost basis.

(i) Property, Plant and Equipment Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arms length transactions, reference to similar instruments and pricing models.

Land is measured on the cost basis. All other property, plant and equipment is measured at cost, less accumulated depreciation and any impairment losses. Cost includes expenditure that is directly attributable to the acquisition of an item. In the event that 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.

2007-2008 Financial Report

Depreciation 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 the Group to its residual value, except leasehold improvements, which are over the shorter of the estimated useful life of the asset or the term of the lease, as follows: Class of Fixed Asset

Depreciation rate and method

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

1% to 2.5% straight line 10% straight line 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.

is determined as the depreciated replacement cost of the asset, rather than by using discounted future cash flows. 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.

(k) 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. All intangibles are initially recognised at their cost, or, when acquired for no consideration, at their fair value at the date of acquisition.

Land is not a depreciable asset.

Computer Software

(j) 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’

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.

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Note 1. Summary of Significant Accounting Policies (cont.)

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.

(l) Inventories

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

Inventories held for sale are valued at the lower of cost and net realisable value. 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 debtors are recognised when the risks and rewards of ownership of the underlying sales transactions have passed to customers. This event usually occurs on delivery of goods or services to customers. Trade debtors are recorded at nominal amounts. Credit terms are 30 days. Collectability of overdue accounts is assessed on an ongoing basis.

(n) 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.

(o) 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. 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.

(p) Employee Benefits Wages, salaries, annual leave and sick leave Liabilities for wages, salaries and annual leave expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided up to the reporting date, calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay as at reporting date including on-costs.

Long service leave The provision for long service leave represents the present value of the estimated future cash outflows to be made resulting from employees’ services provided up to reporting date. The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to national government bonds at reporting date which most closely match the terms of maturity of the related liabilities.

Superannuation The Group contributes to complying funds at the required rate of the employees’ wages and salaries. Superannuation contributions are recognised as an expense when incurred.

(q) Standards and Interpretations Issued Not Yet Effective At the date of authorisation of the financial report, the 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:

2007-2008 Financial Report

Standard

Effective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year ending

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

1 January 2009

30 June 2010

AASB 8 ‘Operating Segments’ AASB 2007-3 ‘Amendments to Australian Accounting Standards arising from AASB 8’

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 Interpretation 12 ‘Service Concession Arrangements’ 1 January 2008 30 June 2009 AASB Interpretation 13 ‘Customer Loyalty Programmes’

1 July 2008

30 June 2009

AASB Interpretation 14 ‘AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’

1 January 2008

30 June 2009

AASB 123 ‘Borrowing Costs’ – (revised) AASB 2007-6 ‘Amendments to Australian Accounting Standards from AASB 123’

1 January 2009

30 June 2010

AASB 2008-1 ‘Amendments to Australian Accounting Standard – Share-based Payments: Vesting Conditions and Cancellations’

1 January 2009

30 June 2010

AASB 2008-2 ‘Amendments to Australian Accounting Standards – Puttable Financial Instruments and Obligations arising on Liquidation’

1 January 2009

30 June 2010

AASB 3 ‘Business Combinations’ and AASB 127 ‘Separate and Consolidated Financial Statements’

1 July 2009

30 June 2010

The initial application of the expected issue of an Australian equivalent accounting standard to the following standard is not expected to have a material impact on the financial report of the Group: Improvements to IFRS (2008) 1 January 2009 30 June 2010 Amendments to IFRS ‘First-time Adoption of International Financial Reporting Standards’ and IAS 27 ‘Consolidated and Separate Financial Statements – Cost of an investment in a subsidiary ‘Jointly Controlled Entity or Associate’

1 January 2009

30 June 2010

IFRIC 15 ‘Agreements for the Construction of Real Estate’

1 January 2009

30 June 2010

IFRIC 16 ‘Hedges of Net investment in a Foreign Operation’

1 October 2008

30 June 2010

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

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

2,059,443 4,713,426 6,772,869

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

1,576,763 4,189,607 5,766,370

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

287,429 7,476,066 9,023,988 580,642 17,368,125

520,444 520,444

287,429 287,429

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

16,153,652 118,600 312,919 1,039,684 17,624,855

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

16,153,652 118,600 312,919 16,585,171

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

4,489,316 307,542 2,449,516 406,809 7,653,183

877,520 337,144 1,214,664

830,912 241,254 1,072,166

(10,607)

7,542

(10,607)

7,542

55,214,585

49,426,574

28,177,705

23,718,678

1,555,417

20,304

711,897

27,385

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

(b) Government Grants Councils/Conferences/Centres Community & Support Services Group Aged Care Group Ozanam Enterprises

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

(e) Changes in value of investment Total Revenue Other Income (f) Net gain on sale of property, plant and equipment

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

5,463,864 865,117 5,218,466 11,547,447

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

4,120,977 793,335 4,951,441 9,865,753

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

313,598 320,376 126,759 760,733

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

313,598 320,376 126,759 760,733

16,538 134,723 1,013,243 274,103 123,621 23,560 227,225 8,712 26,691 29,847 18,404 479,393 429,764 2,805,824

191,594 75,641 1,199,689 243,603 38,493 24,801 3,650 109,223 56,960 43,063 37,545 11,741 228,419 529,855 2,794,277

16,538 133,127 1,013,243 274,103 123,621 23,560 227,225 8,712 26,691 29,847 18,404 479,393 429,764 2,804,228

191,594 75,641 1,199,689 243,603 38,493 24,801 3,650 109,223 56,960 43,063 37,545 11,741 228,419 529,855 2,794,277

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

548,244 20,670 3,087,261 1,222,799 362,133 334,582 81,707 562,603 15,000 56,969 50,658 422,855 38,599 453,674 7,257,754

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

548,244 20,670 3,087,261 1,222,799 362,133 334,582 81,707 562,603 15,000 56,969 50,658 422,855 38,599 466,369 7,270,449

Note 3. Operating Surplus Operating expenses (a) Cost of Sales Employee salaries & benefits Cost of goods sold â&#x20AC;&#x201C; 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 Occupancy Printing/Postage/Office supplies Repairs & maintenance Telephone Training Travel & accommodation Other â&#x20AC;&#x201C; includes Shared Services costs State Council (d) People in Need Services Accommodation/Transport Cash Food vouchers Food purchases Whitegoods Utilities Medical Education Compassionate Youth Migrant & Refugees Overseas Indigenous Program Bursary Sundry

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

703,683 356,004 582,536 9,502,167 159,682 207,253 171,244 44,177 239,190 30,127 39,690 335,811 185,512 193,438 32,104 686,894 13,469,512

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

208,786 1,077,515 364,108 5,245,856 173,056 86,450 134,173 139,371 80,045 106,771 504,437 8,120,568

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

176,400 887,662 196,071 234,903 730,716 2,225,752

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

176,400 887,662 196,071 234,903 730,716 2,225,752

50,747,150

46,176,043

26,260,030

22,916,964

Note 3. Operating Surplus (cont.) (e) 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 Write off of construction costs Interest paid – other persons Other (f) Homelessness & Housing Services Cleaning/Waste removal Client support/Emergency accommodation Depreciation Employee salaries & benefits Occupancy Legal & Audit Motor vehicle running Repairs & Maintenance Telephone Utilities Other (g) Support Services Accounting & payroll support Conference Support – Employee salaries & benefits Conference Support – Other State, National, International Councils Conference operating

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

603,489 44,721 9,433 471,013 593,135 83,920 1,805,711

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

261,362 487 146,746 413,315 41,635 863,545

61,274 26,228 4,000 (5,544)

67,209 193,438 7,765 (1,296)

20,657 -

9,257 -

2,095,623

1,599,440

2,003,686

1,530,829

102,777 10,344 113,121

58,642 33,037 91,679

65,511 10,344 75,855

22,776 33,037 55,813

1,555,417

20,304

711,897

27,385

1,332,100 87,600 44,400

785,000 48,000 6,910

609,000 48,000 6,000

Note 3. Operating Surplus (cont.) (i) 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 Write off of construction costs Construction costs expensed Allowance for doubtful debts Allowance for doubtful debts reversed Rental expense on operating leases - Minimum lease payments Remuneration of Auditor - Audit - Other Services

(ii) Net gains Gain on sale of property, plant and equipment

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

1,489,250 100,800 48,310 134,062

119,890

70,680

54,810

1,772,422

1,583,990

910,590

717,810

The basis of key management personnel are those officers that report to a Chief Executive Officer.

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

55,991

53,686

38,301

34,646

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

67,896 423,552 852,627 941,037 4,873

35,189 198,059 -

67,896 423,552 -

4,349,248

3,546,134

4,349,248

3,546,134

3,258,417 4,155,815 13,514,804

2,995,708 1,215,936 10,101,449

4,620,797

4,072,228

470,404 (23,156) 447,248

543,385 (24,700) 518,685

300,534 300,534

215,758 215,758

981,035 1,428,283

502,254 1,020,939

740,639 151,181 1,192,354

340,258 1,889 557,905

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 - Funds Awaiting Utilisation - Employee Entitlements - Residentsâ&#x20AC;&#x2122; Trust

Note 6. Trade and Other Receivables Trade debtors (i) Allowance for doubtful debts

Other debtors Amount receivable from subsidiary 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 Groupâ&#x20AC;&#x2122;s trade receivable balance are debtors with a carrying amount of $38,407 (2007: $20,755) 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 103 days (2007: 117 days). Ageing of past due but not impaired 61 - 90 days Over 90 days

35,291 3,116

5,580 15,175

23,040 1,592

3,509

38,407

20,755

24,632

3,509

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

Note 6. Trade and Other Receivables (cont.) 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

24,700 4,000 (5,544)

22,587 7,765 (4,356) (1,296)

Balance at the end of the year

23,156

24,700

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.

Note 7. Inventories Finished goods â&#x20AC;&#x201C; average cost

138,684

117,782

118,910

97,190

1,003,430 3,000,000 4,003,430

500,000 500,000

11,482,110 2,517,890 2,000,000 16,000,000

10,633,471 8,385,609 2,000,000 21,019,080

8,000,000 8,000,000

8,019,080 8,019,080

23,914

34,520

23,914

34,520

20,027,344

21,053,600

8,523,914

8,053,600

4,027,344 16,000,000 20,027,344

34,520 21,019,080 21,053,600

523,914 8,000,000 8,523,914

34,520 8,019,080 8,053,600

Note 8. Other Financial Assets Held-to-maturity investments carried at amortised cost: Current Medium term notes (i) - Funds Awaiting Distribution - Residentsâ&#x20AC;&#x2122; Trust Non-Current Medium term notes (i) - Funds Awaiting Distribution - Residentsâ&#x20AC;&#x2122; Trust Units in equity linked investment (ii) 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

(i) The Group holds medium term notes returning a variable rate of interest. The weighted average rate on these securities is 8.43% p.a. (2007: 7.03% p.a.). The notes are redeemable at face value at maturity dates ranging between 6 to 48 months from reporting date. (ii) The Group holds units in an equity linked investment. The redemption value of these units as at 30 June 2008 was $1,676,000 (2007: $2,048,400). This investment is for a 5 year term with the original investment capital guaranteed by the ANZ Bank.

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

52,406,043

51,805,739

Note 9. Investments in Controlled Entities Non-Current 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

Australia Australia Australia

100% 100% 100%

During the financial year, St Vincent de Paul Society Victoria Inc. contributed a further $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 trusteeâ&#x20AC;&#x2122;s intention that the principal of each bequest will remain within the fund for perpetuity. Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

185,567 328,655

347,508 385,676

185,567 276,683

260,325 252,633

514,222

733,184

462,250

512,958

Note 10. Other Assets â&#x20AC;&#x201C; Current GST recoveries Prepayments

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

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

789,300 410,700 1,200,000

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 Motor Vehicles At cost Less accumulated depreciation Computer Hardware At cost Less accumulated depreciation Artwork & Antiquities At cost

22,439,125

25,169,125

9,158,114

9,398,114

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

24,174,007 6,691,923 (3,373,408) 27,492,522

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

10,520,082 71,300 (1,378,265) 9,213,117

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

536,008 (93,251) 442,757

311,319 (15,222) 296,097

52,985 (487) 52,498

460,148 (69,108) 391,040

22,689 (18,663) 4,026

428,306 (46,420) 381,886

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

4,661,678 (2,413,780) 2,247,898

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

1,451,607 (505,524) 946,083

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

4,632,348 (2,349,780) 2,282,568

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

3,408,678 (1,811,506) 1,597,172

575,684 (424,467) 151,217

486,445 (335,007) 151,438

306,982 (225,421) 81,561

250,241 (184,716) 65,525

525

61,139,507

57,790,859

22,144,345

21,272,509

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

Note 12. Property, Plant & Equipment (cont.) 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: Total Land Carrying amount at beginning of financial year Additions Disposals Classified as held for sale (i) Reclassifications Impairment loss recognised against Asset Revaluation Reserve (i) Carrying amount at end of financial year

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

25,389,601 708 (96,000) (125,184) -

9,398,114 (240,000) -

9,618,590 708 (96,000) (125,184) -

22,439,125

25,169,125

9,158,114

9,398,114

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

27,492,522 7,256,493 (1,525,816) (952,314) (410,700) (133,800)

22,290,219 5,929,637 (55,591) -

9,213,117 741,312 (403,353) (126,133) -

9,259,500 145,386 (55,591) -

(26,228) (608,142) 31,092,015

125,184 (193,438) (603,489) 27,492,522

(260,611) 9,164,332

125,184 (261,362) 9,213,117

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

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

354,255 133,223 (44,721) 442,757

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

52,985 (487) 52,498

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

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

14,943 (1,484) (9,433) 4,026

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

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

Note 12. Property, Plant & Equipment (cont.) Total Furniture, Plant & Equipment Carrying amount at beginning of financial year Additions Transfer Capital WIP Disposals Reclassifications Less depreciation Carrying amount at end of financial year

2,247,900 819,312 1,164,101 (122,079) (518,252) 3,590,982

2,421,629 299,150 (317) (1,549) (471,013) 2,247,900

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

982,474 110,355 (146,746) 946,083

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

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

2,488,040 1,046,685 (659,022) (593,135) 2,282,568

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

1,688,796 863,723 (542,032) (413,315) 1,597,172

Total Computer Hardware Carrying amount at beginning of financial year Additions Disposals Reclassifications Less depreciation Carrying amount at end of financial year

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

125,902 111,402 (3,495) 1,549 (83,920) 151,438

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

59,950 50,576 (3,366) (41,635) 65,525

525 525

57,790,859 10,092,228 (3,216,811) (1,200,000) (334,500)

53,084,587 7,521,330 (815,908) -

21,272,509 2,446,612 (580,742) -

21,609,310 1,223,733 (696,989) -

(26,228) (1,966,041) 61,139,507

(193,438) (1,805,711) 57,790,859

(994,033) 22,144,345

(863,545) 21,272,509

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

(i) On 10 April 2008, the subsidiary, St Vincent de Paul Aged Care and Community Services, entered into an agreement with Biscan Developments Pty Ltd to sell the property at 24 St David Street, Geelong North, also known as Rosalie House. The property was sold at the agreed price of $1,200,000 with settlement due on 15 October 2008. On reclassification of the property as held for sale at reporting date, an impairment loss of $334,500 has been recognised against the Asset Revaluation Reserve. (ii) An assessment of the value of land and buildings was undertaken by State Council on 30 June 2008. This assessment was based on independent valuations undertaken by m3 Property Strategists on 30 June 2004 and 30 June 2005. State Councilâ&#x20AC;&#x2122;s valuation disclosed a current market value of land & buildings of $74,037,148 for the Group and $30,178,296 for the parent entity.

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

14,000,000

743,781 (600,459) 143,322

658,344 (539,249) 119,095

128,216 (39,159) 89,057

78,853 (18,566) 60,287

14,143,322

14,119,095

89,057

60,287

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

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

139,561 46,744 (67,210) 119,095

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

56,913 12,631 (9,257) 60,287

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

14,139,561 46,744 (67,210) 14,119,095

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

56,913 12,631 (9,257) 60,287

818,246 466,770 331,052 996,989 2,613,057

638,947 188,491 386,627 560,172 1,774,237

241,812 230,926 146,141 600,304 1,219,183

399,196 15,870 177,980 593,046

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

(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.

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

Note 15. Provisions Current Employee benefits (i)

(a)

3,888,249

3,506,988

1,007,338

923,806

Non-Current Employee benefits

(a)

465,654

621,397

88,148

208,872

4,353,903

4,128,385

1,095,486

1,132,678

(a) Aggregate Employee Entitlement Liability

(i) The current provision of employee benefits includes $3,469,749 (parent entity: $1,007,338) of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2007: $3,326,067 and $923,806 for the Group and for the parent entity respectively).

Note 16. Other Liabilities Unsecured: Refundable accommodation bonds Prepaid income Other liabilities GST payable

9,673,705 31,694 22,525 406,979 10,134,903

9,601,545 47,590 34,180 35,120 9,718,435

331,694 7,753 339,447

397,590 35,120 432,710

Note 17. Reserves Nature and Purpose of Reserves: Asset revaluation reserve 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 Represents the capital value of land and building sold. Fund-a-Future reserve Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24. Bequest reserve 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.

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

Note 18. Lease Commitments Receivable Commitments in relation to a lease contracted for at the reporting date but not recognised as assets receivable: Within one year Later than one year but not later than 5 years Later than five years

Representing Non-cancellable operating lease

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

50,000 200,000 100,000 350,000

300,000

350,000

Note 19. Capital and Lease Commitments (a) Lease Commitments Payable Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities payable: Property â&#x20AC;&#x201C; Operating Leases Not later than one year Later than one year but not later than 5 years Later than five years

1,084,889 1,501,617 740 2,587,246

1,164,555 1,533,218 8,189 2,705,962

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

1,119,757 1,514,357 7,444 2,641,558

The property leases are non cancellable leases spanning various terms with rental paid monthly in advance. This covers property leases for Centres and Community Services. (b) Capital Commitments Capital expenditure commitments contracted for: Building development project Building works and refurbishment projects

Payable Not later than one year

296,001 296,001

5,540,361 5,540,361

296,001

5,540,361

2007-2008 Financial Report

Consolidated Entity 2008 $

Consolidated Entity 2007 $

Parent Entity 2008 $

Parent Entity 2007 $

Note 20. 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 Cash deposits with banks Bank term deposits Balance per Cash Flow Statement

55,991 1,695,333 11,763,480 13,514,804

53,686 2,289,985 7,757,778 10,101,449

38,301 233,248 4,349,248 4,620,797

34,646 491,448 3,546,134 4,072,228

(b) Reconciliation of cash flow from operations with operating surplus after income tax Operating surplus

6,022,852

3,270,835

2,629,572

829,099

2,027,315 (1,555,417) (287,905) (166,788) 40,473

1,872,920 (20,304) (300,240) (119,994) 32,104

1,014,690 (711,897) -

872,802 (27,385) -

26,228 10,606

193,438 (7,542)

10,606

(7,542)

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

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

723,617 65,277 (234,742) (594,447) 148,742

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

901,837 57,737 (208,344) (441,465) 131,579

Cash Flows from operations

7,316,726

5,029,664

2,833,194

2,108,318

Cash flows in operating activities but not in operating result Non-cash flows in operating surplus Depreciation and amortisation (Profit)/loss on sale of fixed assets Residents’ accommodation bond retentions Interest deducted from residents’ accommodation bond Interest paid and payable on refund of residents’ accommodation bond Construction costs expensed Write off of construction costs Changes in value of investment

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Note 21. Financial Instruments (a) Financial Risk Management The Group’s financial instruments consist mainly of deposits with banks, short-term 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. The Group does not have any derivative instruments at 30 June 2008.

(i) Treasury Risk Management The Finance Committee is delegated 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.

(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 21(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 Finance Committee, who have built an appropriate liquidity risk management framework for the management of the Group’s short, medium and longterm 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 21(c). Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. 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. Market risk The Group is not exposed to any material market risk. Price risk The Group is not exposed to any material commodity price risk.

(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.

2007-2008 Financial Report

Note 21. Financial Instruments (cont.) (b) Financial Instruments

Weighted average effective interest rate

Floating Interest Rate

Fixed interest rate maturing in:

Non Interest bearing

1 year or less 2008 $

2008 $

2007 $

2008 $

7.36% 7.06% 7.29%

6.21% 1,719,254 5.89% 0.00% -

813,412 -

2,629,994 8,385,081 464,774

2,732,722 5,050,795 941,037

271,549 20,484 -

0.00%

4,873

1,041,173 406,718 3,548

6.67% 8,500,000 7.63% 11,000,000 0.00% 503,430

8,019,080 13,000,000 -

23,914 -

34,520 8,523,914 8,053,600 - 11,000,000 13,000,000 503,430 -

- 21,722,684

21,832,492

11,479,849

8,724,554

1,772,259

1,730,827 34,974,792 32,287,873

Trade and Other Payables -SVDP Inc. -ACCS

618,879 1,396,415

Refundable Accommodation Bonds and Other Liabilities -SVDP Inc. -ACCS

7,753 9,673,705

11,696,752 10,850,732 11,696,752 10,850,732

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

Other Financial Assets -SVDP Inc. 8.08% -ACCS 7.18% -SVDP VIC 8.14% Endowment Fund Total Financial Assets

2007 $

Over 1 to 5 years 2007 2008 2007 $ $ $

Total carrying amount as per the statement of financial position

2008 $

2007 $

2008 $

2007 $

526,096 4,620,797 4,072,230 32,516 8,405,565 5,083,311 464,774 941,037 4,873

4,873

556,016 1,041,173 576,806 406,718 3,548

556,016 576,806 -

(ii) Financial Liabilities

Total Financial Liabilities

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

593,046 618,879 621,021 1,396,415

35,120 9,601,545

7,753 9,673,705

593,046 621,021

35,120 9,601,545

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Note 21. Financial Instruments (cont.) (c) Liquidity Risk The following tables detail the Groupâ&#x20AC;&#x2122;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

2008 Non-interest bearing

0.00%

11,696,752

2007 Non-interest bearing

0.00%

10,850,732

Weighted average interest rate %

Less than 1 year $

1-5 years

5+ years

2008 Non-interest bearing

0.00%

1,219,183

2007 Non-interest bearing

0.00%

593,046

Parent Entity

The following tables detail the Groupâ&#x20AC;&#x2122;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

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

0.00% 7.61% 7.18%

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

19,110,411 19,110,411

2007 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

0.00% 7.24% 5.45%

1,730,827 1,354,068 9,589,922 12,674,817

22,922,869 22,922,869

2,000,000 2,000,000

2007-2008 Financial Report

Parent Entity

Weighted average interest rate %

Less than 1 year $

1-5 years

5+ years

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

9,745,666 9,745,666

2007 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

0.00% 6.67% 6.21%

1,116,632 534,567 3,577,779 5,228,978

10,167,105 10,167,105

(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 Groupâ&#x20AC;&#x2122;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 Groupâ&#x20AC;&#x2122;s financial assets and financial liabilities at balance date 2008

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.

2007

Carrying Amount $

Net Fair Value $

Carrying Amount $

Net Fair Value $

13,496,009 1,451,439 20,027,344 34,974,792

13,496,009 1,428,283 15,137,654 30,061,946

10,101,451 1,132,822 21,053,600 32,287,873

10,101,451 1,108,122 21,102,000 32,311,573

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

1,249,187 9,601,545 10,850,732

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

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

4,072,230 557,905 8,053,600 12,683,735

626,632 626,632

628,166 628,166

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Note 22. Related Party Disclosures

St Vincent de Paul Aged Care and Community Services

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

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 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 7 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 $20,210; and • $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 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 $600,304 to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9.

The Aged Care Services segment provides care and accommodation for elderly and disadvantaged citizens through a mix of hostels, nursing homes, and a day therapy centre. 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, and the management of independent living units. The Disability Employment Services segment provides supported employment for people with a disability. There are no inter-segment transactions.

Note 23. 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.

Financial information about the Company’s business segments is presented in the schedule on the following page.

2007-2008 Financial Report

Note 23. Segment Reporting (cont.) Primary reporting â&#x20AC;&#x201C; business segments Centres of Charity

Conferences & Councils

Aged Care

Community Services

Disability Employment Services $

4,695 18,534,599 -

7,559,695 515,749 358,910 -

564,201 9,230,063 3,873,827 301,175

282,602 8,838,257 657,439 -

391,127 -

537,399 6,461,900

74,394 1,159,360 -

49,515 -

287,629 (10,607)

18,979,936

Elimination Consolidated

8,133 642,361 988,215 -

(20,210) -

8,414,631 19,231,125 19,861,514 4,531,266 301,175

184,828 -

27,679 -

(6,461,900)

74,394 2,300,393 -

14,689 -

205,595 -

3,266 -

(50,000) -

510,694 (10,607)

15,710,675

15,217,709

10,168,721

1,669,654

(6,532,110)

55,214,585

713,921

(2,024)

845,309

(533)

(1,256)

1,555,417

868,681

1,810,301

2,050,620

1,212,666

80,583

6,022,852

23,454,292

15,293,060

42,856,558

10,261,371

879,631

(1,051,485)

1,476,260

1,177,856

11,920,146

1,635,594

190,744

(1,051,485)

15,349,115 1,752,748 17,101,863

630,600

384,090

593,125

364,991

54,509

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

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

St Vincent de Paul Society Victoria Inc.

Notes to the Financial Statements (cont.) for the year ended 30 June 2008 Note 23. Segment Reporting (cont.) Primary reporting â&#x20AC;&#x201C; business segments (cont.) Centres of Charity

Conferences & Councils

Aged Care

Community Services

Disability Employment Services $

16,159,251 -

5,766,370 287,429 425,920 -

388,775 9,023,988 3,635,542 307,542

609,091 7,476,066 853,774 -

357,120 4,590 16,520,961

473,792 6,865,994 236,664 7,542 14,063,711

82,056 1,283,960 44,082 14,765,945

91,340

(63,955)

267,835

Elimination Consolidated

8,633 580,642 1,052,379 -

(12,695) -

6,772,869 17,368,125 17,624,855 4,489,316 307,542

279,817 70,756 9,289,504

54,826 18,662 1,715,142

(6,865,994) (50,000) (6,928,689)

82,056 2,449,515 324,754 7,542 49,426,573

(5,811)

(1,260)

(10)

20,304

561,264

1,319,247

1,071,446

51,043

3,270,835

21,258,961

14,308,753

39,418,943

9,960,250

950,219

(351,889)

85,545,237 19,391,671 104,936,908

1,998,989

159,445

11,393,111

1,185,655

234,935

(351,889)

14,620,246 1,000,811 15,621,057

529,769

343,033

582,537

364,108

53,474

1,872,921

193,438

618,730

617,633

6,089,593

225,200

16,918

7,568,074

2007 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 Write off of property, plant & equipment Acquisition of non-current segment assets

Secondary reporting â&#x20AC;&#x201C; geographic segment St Vincent de Paul Society Victoria Inc. operates within Australia. St Vincent de Paul Aged Care and Community Services operates within Australia.

2007-2008 Financial Report

Note 24. Economic Dependency

Note 26. Subsequent Events

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.

Subsequent to year end, volatility in the freely traded investment markets has significantly risen largely due to conditions associated with credit shortages as a result of international market conditions. In the case of the Group, these conditions have led to a diminution in the value of the investments compared to 30 June 2008. State Council regards this movement as a part of the investment cycle and continue to make investment decisions based on long term investment needs and strategies.

Note 25. Remuneration of Auditors The remuneration of auditors is disclosed in Note 3. The auditor of St Vincent de Paul Society Victoria Inc. is Deloitte Touche Tohmatsu.

No other matter or circumstance has arisen since 30 June 2008 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.

St Vincent de Paul Society Victoria Inc.

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 2008 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 20th day of September 2008

Peter Jackson Treasurer

2007-2008 Financial Report

Deloitte Touche Tohmatsu ABN: 74 490 121 060 180 Lonsdale Street, Melbourne VIC 3000 GPO Box 78, Melbourne VIC 3001 Australia DX 111 Telephone: +61 (0) 3 9208 7000 Facsimile: +61 (0) 3 9208 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 St Vincent de Paul Society Victoria Inc. and its consolidated entities, which comprises the balance sheet as at 30 June 2008, 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 company 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 are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations). 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.

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

Liability limited by a scheme approved under Professional Standards Legislation.

St Vincent de Paul Society Victoria Inc.

Auditorâ&#x20AC;&#x2122;s Opinion In our opinion, the financial report of 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 2008, 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).

DELOITTE TOUCHE TOHMATSU

A M Brown Partner Chartered Accountants

Melbourne, 20 September 2008

This time itâ&#x20AC;&#x2122;s personal

St Vincent de Paul Society Victoria Inc. Locked Bag 4800, 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 ABN: 28 911 702 061 RN: A0042727Y

St Vincent de Paul Aged Care & Community Services St Vincent de Paul Society Victoria Inc. Locked Bag 4700, Box Hill Vic 3128 Bag Hill 4800, Hill Vic 3128 43 Prospect Locked Street, Box VicBox 3128 43 Prospect Street, Box Hill Vic 3128 Phone: 03 9895 5900 Phone: 03 9895 5800 Fax: 03 9895 5950 Fax: 03 9895 5850 Email: accs@svdp-vic.org.au Email: info@svdp-vic.org.au ABN: 530 9480 7280 ABN: 28 911 702 061 ACN: 094 807 280 RN: A0042727Y

St Vincent de Paul Aged Care & Community Services Locked Bag 4700, Box Hill Vic 3128 43 Prospect Street, Box Hill Vic 3128 Phone: 03 9895 5900 Fax: 03 9895 5950 Email: accs@svdp-vic.org.au ABN: 530 9480 7280 ACN: 094 807 280