Habitat for Humanity Australia - Annual Report 2010 by Habitat for Humanity Australia

building homes, communities and hope

Annual Report 2010

Our vision is a world where everyone has a safe and decent place to live. A home means so much more than a roof over your head - a home means you have an address so you can get a job. It means you have somewhere secure to keep your possessions. It means you have somewhere clean to prepare and eat your food so you donâ&#x20AC;&#x2122;t get sick. It means you have somewhere safe to lie down every night. It means your children have a desk and a light to study by so you all have hope for the future.

Contents

About Habitat for Humanity Australia �� 02 Our year at a glance �� 03 A message from our Chair �� 04 Our board of directors ��06 A message from our CEO ��08 Our achievements in Australia �� 10 Our achievements overseas ��14 Habitat home partner - Cambodia ��18 Our partners �� 19 Our Global Village program �� 20 A life-changing experience ��21 Fundraising and marketing program ��22 Project accountability ��24 Financial report ��26 How you can create a habit(at) for humanity ��43

ACFID Code Habitat for Humanity Australia is a member of the Australian Council for International Development (ACFID) Code of Conduct. The Code requires non-government development organisations to meet high standards of corporate governance, public accountability and financial management. Habitat for Humanity Australia’s adherence to the Code demonstrates our commitment to ethical practice in our operations in Australia and internationally. This document can also be viewed at www.habitat.org.au

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About Habitat for Humanity Australia We’re in the business of building homes, communities and hope. Habitat for Humanity is the world’s number one notfor-profit provider of housing for low-income families in need. Established in 1976 as a Christian-based humanitarian organisation, Habitat for Humanity has changed lives around the world. Today, Habitat for Humanity has built almost 400,000 houses, sheltering more than two million people in over 3,000 communities worldwide. We provide families with safe, decent and affordable homes - in fact, a new home is built somewhere in the world by Habitat for Humanity every 24 minutes. We believe it all starts at home. A stable, secure home creates the foundation for change, giving people the opportunity to be healthier, happier and more secure, leading to better education for their children. We believe building a decent home is much more than bricks and mortar – it provides real hope for the future. We provide a hand-up not a hand-out by building homes in partnership with families both in Australia and overseas. The families contribute labour and a deposit, while we assist with expertise and financing. Importantly, as the no-profit loan is repaid, the funds go towards building even more

homes for people in need. In this way, the dollars that people donate to Habitat for Humanity go even further.

We also actively respond to natural disasters by providing clean water, sanitation and temporary shelter.

The families we help are living in housing-related stress. They are unable to borrow money to buy or build a home and are willing to work in partnership with Habitat for Humanity.

We’re committed to resource and energy-efficient building practices. Our construction techniques involve conserving natural resources and minimising the carbon footprint of building. As a consequence, long-term costs for our homeowners are reduced.

We do more than just build homes – we build communities by addressing water supply and sanitation issues and, in some communities, by providing health, education, livelihood and financial literacy assistance.

Our year at a glance

In Australia We helped 11 families achieve the great Australian dream of home ownership this year, adding to the 83 homes already built. A further 41 projects are in the pipeline. The Bidwill Blitz program saw two homes built in just 12 days in 2009 â&#x20AC;&#x201C; an amazing achievement! Our Brush with Kindness program continued to support families affected by the Victorian bushfires. In fact more than 530 volunteers completed over 20 Brush with Kindness projects this year.

We also helped 96 children enrol in full-time education and 800 people received support with income generation opportunities.

Global Village program During 2010, over 200 volunteers joined the Global Village program and travelled overseas to help build homes alongside local families in India, Nepal, Thailand, Vietnam, Cambodia, Indonesia, and Malaysia.

A new Habitat for Humanity home is built somewhere in the world every

24 minutes

Overseas We worked in partnership with families and communities in six countries across the AsiaPacific region, improving living conditions for 5,000 households. Over 800 households were assisted through the provision of core housing, home repair and rehabilitation. We also improved access to clean water and sanitation for over 800 families and helped improve health awareness for more than 2,500 women and children. Over 170,000 households were assisted with emergency food, water and shelter kits in response to the natural disasters in the Asia Pacific last year.

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A message from our Chair Chris Franks

Habitat for Humanity is an incredible organisation with a proven track record of delivering positive outcomes by working hand-in-hand with those in need. I feel privileged to have been elected Chair of Habitat for Humanity Australia. We have an exceptional team in place in Australia who have a clear vision and welldefined goals for the future. What unites all of us at Habitat for Humanity Australia is a simple belief in a world where everyone has a safe and decent place to live. It’s this belief that is at the centre of everything we do - whether it’s our board or management team, our tireless volunteers or our corporate partners, and of course our donors. We are deeply grateful for the contribution of each and every person and the difference they make to Habitat for Humanity Australia. This has been a year of many challenges, but also many hard-won achievements.

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In March 2010, we received our AusAID accreditation that lays the foundation for an ongoing funding relationship in the years to come. Importantly for our staff and volunteers, it recognises Habitat for Humanity Australia as a professional, well-managed, communitybased organisation, capable of delivering quality development outcomes. This is something of which we are all proud. In Australia, we have now assisted 94 families in need and involved them in the building of their own home. These people live on the edge of our communities, and have been helped by our affiliates in each state who invest significant amounts of time and effort to enlist the support of local businesses and tradespeople, recruit volunteers and raise additional funds to make it happen. Building homes in Australia is challenging. The cost of land continues to rise, and the shortage of skilled labour, along

with the requirement to meet Australian building standards, makes building here significantly more expensive than overseas. In order to complement this work, we’re exploring additional programs to make a difference to how people live - one is a renovation program, called Brush with Kindness. This is a program designed to help the elderly, carers of the elderly and disabled, and those who’ve faced a catastrophic event, like the bushfires in Victoria, renovate or upgrade their homes. Our international program continues apace with programs across the Asia Pacific region. In addition to building homes, we have been making significant contribution to the health of communities, with the installation of clean water and sanitation. This became abundantly clear to me while sitting in a modest, wooden house in Cambodia sharing a meal with the new owners. A well and toilet

One of their treasured possessions is a small photograph of the smiling Global Village volunteers who helped build their home. They call them ‘good friends’ people who sweated and toiled next to them, forgot language barriers… facilities for the community have changed their lives. One of their treasured possessions is a small photograph of the smiling Global Village volunteers who helped build their home. They call them ‘good friends’, people who sweated and toiled next to them, forgot language barriers and communicated instead with smiles, a few simple words and hugs of thanks. And they asked me to once again thank all our volunteers and donors for their support and generosity. We are truly blessed to share these experiences with our loyal and generous sponsors and donors,

who believe in our work and trust us to deliver, at lowest cost, high quality homes for people who desperately need them in Australia and overseas. We also receive generous donations of goods and services, particularly in Australia. Some of our partners provide corporate services that reduce our legal, accounting and auditing costs and requirements, helping us to maintain an open and transparent policy on how we spend our limited funds. Ultimately, these generous donations enable us to do more for more families in need.

Habitat for Humanity Australia has focused on improving and strengthening its governance framework. Over several years, we’ve increased the number of directors to help us achieve our goal of assisting more families. We welcome Paul Mulroney from NSW who was nominated by our affiliates, and congratulate director Peter Schulze on being elected Chair of Habitat for Humanity, South Australia. We also welcomed new directors Sue Baker-Finch, Hugh Martin, Shannon Hood and Zlatko Todorcevski. This year demanded a high level of input and effort from our board and I would like to thank my fellow directors for their wise and thoughtful counsel and willingness to get involved. Our directors also paid their own expenses - a major donation, especially when flying interstate - and one which enabled us to direct funds to those most in need. My gratitude is to each and every one of you and I look forward to working with you in the coming year. An enormous thank you to everyone who has supported us this year.

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Our board of directors Habitat for Humanity Australia is governed by a board of voluntary directors who are elected and appointed by members at the Annual General Meeting. Directors are elected or appointed for two year terms and the constitution sets limits on the maximum period that people may serve on the board. There are currently eight appointed directors.

Chris Franks (Chair) Chris was appointed Director of Habitat for Humanity Australia in 2008 and elected Chair in 2010. She was Chair of the Australian Council for International Development (ACFID), was on its Code of Conduct Committee from 2002-2008, and received the inaugural ACFID Award for Outstanding Service to the Aid and Development Sector in 2006. Chris currently runs a consulting company and is a nonExecutive Director of CUA and CUA Health and Chair of the CUA Sustainability Committee. Other not-for-profit roles include past Chair of the NSW Charities Ministerial Advisory Committee and executive or board roles with National Heart Foundation, Starlight Children’s Foundation, Oxfam, Save the Children NSW and the Australian Consumers’ Association - CHOICE.

Graeme W Sinclair (Treasurer) Graeme is a qualified Chartered Accountant with more than 30 years’ experience in investment and wealth-management services, working with KMPG in Melbourne and London. He joined the Myer Family Group in 1973 and retired

as Managing Director and Group Chief Executive Officer in 2009. Graeme is a director of Habitat for Humanity, Victoria, as well as Peet Ltd and Mirrabooka Investments Ltd, Chairman of Australian Geographic Retail Pty Ltd and a director of a number of other private companies. He is also a Trustee of The William Buckland Foundation. He has previously been involved in professional, community and philanthropic activities, as well as committee roles in sporting and aged-care organisations.

Zlatko Todorcevski (Secretary) Zlatko is the Chief Financial Officer of Oil Search Limited, an ASX-listed, top-thirty company focused on the exploration for, and development of, oil and gas resources internationally. Prior to joining Oil Search, Zlatko enjoyed a 23-year career with BHP Billiton, where his most recent position was Chief Financial Officer of the Energy Group. His career at BHP spanned numerous roles and included extended international postings in Europe and the UK. Zlatko brings tremendous depth and breadth of experience in international financial matters, as well as in strategy and mergers and acquisition.

Sue BakerFinch Sue is a Director of the Illawarra Business Chamber, Wollongong City Centre Limited, as well as Habitat for Humanity, Australia. Her career includes 13 years in science education and over 15 years experience in senior executive management roles across all three levels of government. She is currently the Chief Operating Officer of the Illawarra Health and Medical Research Institute and previously completed a three-year tenure as Chief Executive of the ACT Government’s wagering business. Sue has also held senior roles at the Australian Sports Commission and Institute of Sport.

Shannon Hood Shannon began his career as a manufacturing engineer, becoming the National Technical Services Manager with Skilled Engineering. During this time he trained as an accountant and eventually worked as a management consultant with Deloitte Touche Tohmatsu in Melbourne, Adelaide and Tokyo. In 2003 Shannon went on to study theology and ministry.

He now oversees vocational education training for the Lutheran Church of Australia and provides pastoral care for the South Australian State Emergency Service. He is a member of the Critical Incident Stress Management Foundation of Australia and the Australian Institute of Company Directors.

Hugh Martin Hugh is Executive Director of Vivas Lend Lease, with over 30 years’ experience in the property industry, internationally and domestically. He was the Chief Executive Officer of the most successful joint venture between Mirvac and Lend Lease, in the development, construction and sale of the Olympic Village, now known as the suburb of Newington in Sydney. During its development, design innovation - in terms of sustainability - was achieved through the use of photovoltaic cells, grey water and in particular, recycling construction materials on site. Many of these initiatives created a new standard for residential community development in Australia.

Paul Mulroney Since January 2001, Paul has been a Children’s Court magistrate in New South Wales and is currently Chairman of Habitat for Humanity, New South Wales, having previously been a member of the Habitat for Humanity Australia Board from 2001-2005.

Prior to his appointment as a magistrate, he worked for more than 20 years as a lawyer for Legal Aid. He has been an alternate commissioner of the NSW Legal Aid Commission, a member of the Criminal Law Committee of the NSW Law Society, a trade union delegate, President of the University of NSW Students Union, member of the University of NSW Council, and a management committee member of a number of community groups. Paul is a member of the Church Council and an Elder of the Church in the Market Place, the Uniting Church in Bondi Junction. He is also a lay preacher.

Peter Schulze Peter is currently Chairman of AFA Interactive. He has also held senior leadership roles in workers compensation, HR, project management and establishing community development partnerships in many developing nations across Asia-Pacific. Previous roles have been with Myer, WorkCover South Australia, Chamber of Manufacturers and other private ventures. Active in a number of community organisations, he is currently Chairman of Habitat for Humanity, South Australia where he’s been on the Board since 2006, and has chaired the International Programs Advisory Committee for Habitat for Humanity Australia through the process towards AusAID accreditation.

David W Benn, Chairman (Immediate past Chairman) David held leadership positions in international banking and finance in the US and Australia for 24 years, followed by 13 years in the senior executive search field. He was most recently Chairman of Peoplebank Ltd, an ASX listed IT contracting firm. Other corporate directorial responsibilities include companies operating in funds management, strategic consulting, senior management succession planning and market research. His community leadership roles have included being Chairman of the Fulbright Commission for bi-national scholarships, President of the American Club, Sydney, Chairman of the Parish Council of St Stephen’s Church, Sydney, and a number of other charitable and community organisations.

Hon. Kerry J Bartlett, (Immediate past secretary) Kerry completed 12 years in Federal Parliament as the Member for Macquarie, including serving as the Chief Government Whip, 2004-2007. His tenure also included serving on key educational, training, environmental, health and ageing committees. He was a secondary school economics teacher in NSW and PNG for almost 25 years. He has ongoing leadership roles in a number of community organisations.

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A message from our CEO Jo Brennan

At Habitat for Humanity Australia we make tangible change by giving families in need a ‘hand up not a hand out’. In the process of building homes and communities, lives are transformed and together we build hope for the future. This year has been no exception. We assisted 836 families in building safe, decent homes in communities across Asia and here in Australia. We are only able to do that as a result of your support. Meeting our partner families and seeing first hand the difference a safe, decent home makes has been the highlight of my first year at Habitat for Humanity. The determined, resilient and hard working families we partner with are truly inspiring; it’s their stories that motivate our team. This year I have been privileged to be involved in many Habitat for Humanity projects. I met families who have moved from rubbish dumps in Vietnam to new Habitat homes and who can now close the door at night and be safe. I have seen the pride on a mother’s face in Cambodia as she showed me the shop she set up in her new home to generate income for her and her two children. It has reinforced my understanding of the impact a stable home brings, including the improvements in education and health that arise from not having

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to continuously move from place to place. This is as true of our Australian families as it is of the international families we assist. One can’t help but be fundamentally changed when you witness these human stories and see the pride and dignity of our families worldwide. As an organisation, we have been making changes internally as well this year. We have built a strong management team who bring high levels of professionalism and motivation to our work. Our Board has continued to be strengthened and we have an updated strategic plan for 2011 to 2013 with specific goals and revised targets. Our four key goals are sustainability, growth, quality and efficiency and innovation. This focus will help us meet the growing demand for our work across the region. We are delighted to have continued the ongoing relationship with our key sponsors QBE LMI – Foundation Sponsor, along with The Charitable Foundation, Communities for Communities and Origin Energy. We are also very pleased to welcome Santos and Burt’s Bees as new partners working with us to address global poverty housing issues. Despite the challenging financial environment we are pleased to report that our revenue has

increased from $3.5 million to $3.8 million, an increase of 8.3% in line with the annual budget. A key milestone this year was receiving AusAID accreditation – a significant achievement for a small development agency. Our donors can be ever confident that the work we do overseas meets rigorous Australian government standards. We are close to completing projects in the Philippines and Afghanistan and excited to be starting new projects in Bangladesh and Nepal, whilst expanding our program in Cambodia. In Australia, the Victorian Brush With Kindness program has assisted over 20 families affected by the bushfires and NSW completed another very successful Bidwill Blitz build, completing two homes in under two weeks. South Australia has continued to expand its program, building four new homes, Western Australia is nearing completion of its first home and Queensland has continued to engage strongly with its local community. Last year over 200 people ‘travelled and changed the world’ through our Global Village program. It’s always inspiring to hear Global Village participants’ stories upon their return. As a result of building

homes alongside our partner families overseas, many tell that they receive much more than they give. The Global Village program will expand significantly next year with over 500 people participating. I’m very excited that this includes our first Hand in Hand build, where Australian women will travel to Nepal with us to celebrate the centenary of International Women’s Day by giving a ‘hand up’ to 250 female-headed families in desperate need. There is still a vast amount of work to be done. The inequality across societies is growing, over 1.6 billion people of our near neighbours are living in dire conditions, while housing affordability continues to spiral out of reach of thousands of Australians. It is only through the loyal support of our donors, sponsors, volunteers, board and staff that we are able to continue our vital work – thank you for being part of the ‘perpetual motion miracle’ that is Habitat for Humanity Australia.

The Brush with Kindness program has continued to offer practical help to families recovering from the Victorian fires. This has been through a variety of activities including fencing, site clearing, tree removal, painting and renovation work. Teams of corporate and individual volunteers have given more than 3,000 hours of service and more than 530 volunteers have participated in over 20 Brush with Kindness projects. It’s now almost two years since the fires, but new requests for assistance are received weekly from families in the affected areas. Although many agencies are reducing their role in the area, Habitat for Humanity is committed to helping families in the long-term recovery process. We currently have over 25 projects that require our assistance.

Jo Brennan CEO

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Our achievements in Australia Habitat for Humanity Australia has built 94 homes and will celebrate the construction of its 100th home in 2011.

Habitat in NSW Last year, Habitat for Humanity built three new homes in NSW for the Hart, Webeck and Koko families. QBE LMI played a significant role both financially and physically, employees rolled up their corporate sleeves and provided over 1,200 volunteer hours helping to build homes for families in need. In a unique new partnership, Habitat for Humanity NSW has teamed up with the GEO Group, TAFE NSW Riverina Institute and Junee Shire Council to work in a new Prison Partnership program. This program will identify offenders keen to volunteer and learn new skills in a range of marketable construction trades they can use when they are out of the prison system. They will build a home for a local Junee family. NSW have eight projects planned for the year ahead.

Habitat in Victoria Habitat for Humanity in Victoria has had a busy year, building seven new homes, continuing to help those affected by the bushfires, as well as working to ‘restore’ communities.

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The bushfire response program has seen the development of a major project in Yea, where up to 25 homes will be built, primarily for families affected by bushfire or those not wishing to return to the bushfire area. Habitat for Humanity has purchased a 2.1 hectare property in the township of Yea itself to provide a safe location nearer to a local community for these families. The Yea Project is the largest project Habitat for Humanity has undertaken in Australia and will have a major impact on both the families and the local Yea community. Our thanks to professional services firm ARUP for offering expertise in the planning stages and Caterpillar for providing time and machinery to help clear the site. Financial and ‘gifts in kind’ have been provided to date by QBE LMI, Covidien and CSR. Other corporate sponsors committing to the Yea project, as it progresses, include Stanley Black & Decker. Restore has over 600 stores in the USA and Canada, and last year the first Australian Restore opened in Victoria. Restore is a home bargain centre which sells

second-hand, new and donated building related materials with funds raised supporting Habitat for Humanity’s building program. The store is managed by a team of local volunteers and the concept is helping to build the overall awareness of Habitat for Humanity’s work in Victoria.

Habitat in Queensland Habitat Queensland would like to thank all the small businesses who have made donations for the first time this year. It is especially grateful for the ongoing generosity of donations from Dulux and Apprenticeships Queensland for providing regular volunteers. The Ipswich Chapter has completed Queensland’s first Brush with Kindness project. A three-bedroom house was purchased in Ipswich to renovate for a refugee family from Papua New Guinea with six children. This year volunteers have come from as far as Canada, Scotland, Sweden and Denmark. We’d like to thank all our volunteers for their support throughout the year.

Diana Graham Imagery

Habitat in Western Australia Habitat for Humanity is currently building the first home in Western Australia, due for completion in December 2010. A huge thank you to all sponsors and donors in the west.

Habitat in South Australia This year Habitat for Humanity completed four, three-bedroom homes in South Australia, which were handed over to the homeowners in February. Four more houses are currently under construction with key partners Ask Employment, Dulux, Housing Industry Associate (HIA) Apprenticeship program, Playford Alive, Prospect Training and St Patrick’s Technical College.

“QBE LMI is the first company that I’ve ever worked for that doesn’t mind people taking time off to do volunteer work. It really does make you feel good when you volunteer on a build, and Ian (CEO, QBE LMI) makes you feel very proud of yourself for being involved” – Michelle Mangleson (Volunteer on five builds and QBE LMI employee for five years)

Michelle Mangleson – 3rd from right

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“I had a few troubles at school. I just didn’t like it, but this project has been a lot of fun and it’s totally turned my life around, it was wicked building the house and everyone just came along and helped each other out” Harley Laver and Darren Thompson Picture: Nicholas Wrankmore

- Harley

Habitat for Humanity gives Harley hope and a positive change for the future Late last year Harley dropped out of school with little hope for his future. Now 15, he’s a full-time apprentice, having helped to build a new Habitat for Humanity home for a family in need. Harley is one of nine young people who recently completed the Housing Industry Association (HIA) Youth Build Playford Alive project. The group, consisting of Playford residents aged 15 to 24, built a new home in Elizabeth Park, South Australia, which will be sold to a low-income family as part of the Habitat for Humanity program. While building the house, the participants completed a Certificate II in General Construction and launched careers in construction. They completed occupational, health and safety training, then built the frames, walls and roof of

the house under the supervision of a qualified builder. Harley, who is now three weeks into an apprenticeship with steel framing firm Ausco, said they also learnt the value of teamwork. The HIA apprentice manager, Darren Thompson, said the program targeted local youth who had dropped out of formal training, education and employment. Three participants have secured full-time apprenticeships, with two others gaining casual employment. Mr Thompson said the group had also felt rewarded by the high quality end product and gained the selfbelief to retain full-time jobs.

“It instilled the belief in each of the participants that they can be an active member in the workforce,” - Darren Thompson.

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Tania manages the international programs for Habitat for Humanity Australia. Taniaâ&#x20AC;&#x2122;s passion and drive has always been connected with helping people and making a difference. Before joining Habitat for Humanity, Australia she worked with Unicef, ChildFund Australia, and the Human Rights and Equal Opportunities Commission. The opportunity to interact with beneficiary families on her monitoring trips is a real pleasure for Tania. Remembering where theyâ&#x20AC;&#x2122;ve come from and seeing them in a new home is always a proud moment for her. The international strategic plan focused on three key objectives during the year. Which were, establishing an ongoing relationship with AusAID, strengthening our program in the Asia-Pacific region and embedding an integrated community development approach.

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Picture: Mikel Flamm

Our achievements overseas Tania Flood

This year, assistance provided by Habitat for Humanity Australia’s international program improved: • the living conditions of 825 households through the provision of core housing, house repairs and rehabilitation • access to water and sanitation for 839 families • basic health awareness for 2,643 community members, the majority of whom were women and children • 799 households’ livelihood opportunities and financial literacy skills • access to schooling for 96 children. In the Philippines 173,104 people were provided with food for work packages and bottled water, following Tropical Storm Ketsana.

Establishing an ongoing relationship with AusAID In March 2010, Habitat for Humanity Australia received AusAID accreditation. This was a great achievement that will provide funding for our programs over the years ahead.

Strengthening our program in the AsiaPacific region Along with our implementing partners, we worked with families and communities in six countries, implementing nine projects across the Asia-Pacific Region in Cambodia, Vietnam, the Philippines, Myanmar, Indonesia and Afghanistan.

Integrated community development Habitat for Humanity Australia recognises that tackling the many facets of poverty requires a complex set of inter-related solutions. That’s why our programs are designed to go beyond simply constructing or repairing physical structures. Integrated, holistic programs incorporating education, health and hygiene promotion, water and sanitation, livelihood and civil society development are supported to increase the likelihood of lasting, sustainable development outcomes.

Highlights from our integrated community development program:

Strengthening civil society In Cambodia, efforts continued to enhance local community governance through the development of civil society groups that institutionalise inclusion and participation of community members, particularly women, in local decision-making processes. Habitat for Humanity facilitated the establishment of local associations within communities who can take responsibility for their own community development.

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Our achievements overseas (Continued)

In Siem Reap, 20 Village Associations were formed, trained and assisted to produce their own village development plans. In Phnom Penh, we continued to strengthen the capacity of 20 local associations, progressively established since 2004. These associations work with project staff to develop community specific housing improvement solutions, set guidelines and identify and properly select beneficiaries. They mobilise community participation and coordinate with local authorities and other responsible agencies to allow their community to address issues that will improve their communityâ&#x20AC;&#x2122;s collective wellbeing.

Improving living conditions Habitat for Humanity Australia continued to assist communities of families living and working on garbage dumps in Phnom Penh, Cambodia and Rach Gia City in Vietnam, creating improved housing with access to clean water and sanitary toilets. A further 24 families from the municipal garbage dump in Rach Gia City are experiencing fewer health ailments associated with overcrowding, poor ventilation and air quality.

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Nineteen families from the Steung Meanchey garbage dump in Phnom Penh have relocated to a new village in the Kandal province, where improved housing is also improving their livelihood, with the opening of small businesses, grocery shops and food stalls.

nutrition for more than 600 women and children.

Under the housing and community development program funded by The Charitable Foundation, a further 1106 people in Cambodia benefited from new and/or repaired housing and access to water and sanitation.

Enhancing livelihoods

Improving access to education Throughout the second half of the year, we began supporting the Al-Turabi school in Afghanistan, developing three additional classrooms, due for completion at the end of 2010. To date over 200 children have moved out of make-shift tentâ&#x20AC;&#x2122;s into classrooms.

Promoting health Habitat for Humanity Australia supported basic health promotion in Cambodia and Vietnam. Community health volunteers were trained in communities in Phnom Penh to deliver basic health awareness messages including hygiene, prevention of malaria, dengue fever and improved

Seventeen hundred children from primary schools in Angkor Chum District in Siem Reap province received training on personal hygiene, focusing on the critical moments for hand washing.

More than 500 households in the Angkor Chum District of Siem Reap province received training on improved agricultural practices to grow vegetables, with a variety of seeds distributed and planted. We also introduced a pilot program for selected families to raise pigs. In Vietnam, partners from the Rainbow Village Project were trained to help construct their own homes, along with a vocational skills centre at the project site. Many of these previously untrained workers have been able to secure higher-paid, skilled jobs away from the garbage dump and some have even become small construction contractors. In Indonesia, over 54 community members have participated in community-based training focusing on activities that will generate income including construction, making concrete blocks and cooking. Over half are now receiving an income from making hollow concrete blocks.

Providing emergency relief The devastating Tropical Storm Ketsana in the Philippines destroyed over 16,000 homes and forced more than 330,000 people into evacuation centres around Manila. Habitat for Humanity Australia, in partnership with Habitat for Humanity Philippines and The Charitable Foundation, delivered a large-scale emergency response and recovery project. The project directly assisted over 170,000 people through the provision of emergency home repair kits, food-for-work packages and water distribution.

Picture: Mikel Flamm

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Habitat home partner - Cambodia

Eagk Family - Current Habitat Home Partner, Kandal Province. Single mother Ms Eagk Srey Hak lived at the Steung Meanchey Municipal Dumpsite in Phnom Penh for over ten years with her two children. She moved to the dumpsite with her husband and collected rubbish. “Since my husband left here, some time ago, I have been supporting myself and my two children on my own. It has been difficult, but we have managed,” Srey Hak said.

In November 2009, Srey Hak worked for a week building her house alongside international and local volunteers. After moving into her home she set-up a shop selling food and sundry items to the neighbouring villagers, an enterprise that has doubled her average daily earnings.

Most importantly, her children are regularly attending school. Srey Hak said, “I feel it is important for the children to receive an education to make sure they have a better future. It is up to them what they wish to do once they complete school, but at least they will be prepared.”

She has also attended a Habitat Cambodia training course on how to raise animals and has started raising chickens to increase her income.

Srey Hak and her children in front of their home at the Steung Meanchey Municipal Dumpsite, Phnom Penh.

Srey Hak proudly posing in front of her new home/store.

Our partners

Habitat for Humanity Australia works with a large community of organisations to alleviate poverty, by providing safe, decent and affordable homes for families in Australia and overseas. This is made possible by the generosity of our partners and supporters. Without your essential financial support we could not fulfil our mission.

Thank you for your continued support of Habitat for Humanity Australiaâ&#x20AC;&#x2122;s critical work.

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Our Global Village program Alexandra Mar

A keen traveller, Alexandra Mar has witnessed terrible living conditions and many people in need of assistance over the years. She joined Habitat for Humanity Australia in 2009 as manager of the Global Village program to help make a difference. Alexandra finds the stories volunteers tell her when they return from a Global Village trip an inspirational part of her job. These trips provide donors with an opportunity to travel overseas and contribute to bringing about positive change. Setting aside a week or two of their lives for a new experience, our Global Village participants gain a deeper insight into Habitat for Humanityâ&#x20AC;&#x2122;s work and the communities we support. Working alongside partner

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families and team members, they witness first-hand the difference a safe and decent home makes to the lives of people living in poverty, and return home with a transformed world view. In changing the lives of our partner families, they in turn change their own. Global Village teams are formed by individuals, school groups, university social clubs, community groups and corporate organisations. This variety is testament to the power Global Village has to unite individuals into a dedicated team. Global Village participants are more than volunteers. They also have an important fundraising target to meet, vital to building programs. Over 200 participants joined the program, travelling to countries throughout the Asia-Pacific region including Cambodia, Nepal, Thailand, Vietnam, Indonesia, India and Malaysia.

2011 will be another exciting year for Global Village with many teams already planning their next adventure. Increasingly donors and supporters are looking to Habitat for Humanity Australia to provide unique opportunities for community engagement. Through Global Village, we can share the positive difference that Habitat for Humanity makes in the lives of those in need and increase the awareness of the challenges of poverty in our region. A big thank you to all our volunteers and program participants and sponsors.

A life-changing experience Michelle Foley

Michelle was introduced to Habitat for Humanity when a colleague sent out an email recruiting volunteers for a Global Village trip to Indonesia. She’d been looking for an opportunity like this for some time and was attracted by the chance to travel while contributing to a worthy cause - all under the safe guidance of an organisation with local knowledge.

Michelle describes her experience in Indonesia as life-changing. Interacting with the residents and immersing herself in their culture provided some respite from her busy work schedule and, upon her return, led her to reassess her life and its direction.

local state office in Perth and in March 2010 she put her leadership skills to use by guiding a Global Village team build in Cambodia. She gets great joy at being able to make life-changing experiences for other volunteers, similar to her own experience in Indonesia.

Michelle began volunteering for Habitat for Humanity in her

Michelle has been volunteering in Western Australia, and enjoys experiencing the organisation on the ‘other side of the fence’. Michelle finds her role with Habitat for Humanity full of interesting moments as she tackles the challenges a not-forprofit organisation faces. Her motto: “If you don’t like it, change it ;and if you can’t change it, change the way you think about it.” That’s certainly what she’s done and has found herself significantly happier.

Picture: Mikel Flamm

Annual Report 2010 | 21

Fundraising and marketing program Laura Carniato

Laura is responsible for Habitat for Humanity Australia’s fundraising and marketing program. After a career in consumer goods marketing, Laura moved into the not-forprofit sector six years ago. While she shares a philosophical belief in the need for everyone to have a home, what she likes most about working at Habitat for Humanity is the ability to actually see the impact her work makes on people’s lives and a recent trip to Cambodia really reinforced this. She sees her job as letting as many people as possible know about the great work Habitat does, and how money is well spent to genuinely transform lives. The past year has seen donations of $3.4 million from donors and supporters, which is an outstanding contribution built from great kindness and generosity. 1.483 new donors joined the Habitat for Humanity Australia family and the HopeBuilder membership program increased by 16%, with new members pledging their ongoing monthly support to our building program.

22 | Habitat for Humanity Australia

Habitat for Humanity Australia was the nominated charity of choice at the Homebake Music Festival in December, which provided an opportunity to showcase the work of Habitat to a more diverse market. Over $15,000 was raised for the Haiti disaster appeal, coordinated by Habitat for Humanity International to help provide shelter kits. The work-place giving program was expanded, with large donations matched through generous corporations. Habitat Lifebuilder Gifts - an online gift catalogue - was launched in time for Christmas, giving supporters the opportunity to purchase a range of gifts for any occasion, with proceeds supporting Habitat’s international building program. “You will notice we have launched a new look and feel for Habitat for Humanity Australia, expressing our personality, the growth of the Habitat community and the work that we do. By working with the team at Sensory we now have a thorough brand refresh across all print and online media.”

“It is only through your generous donations of time and money that we are able to celebrate these achievements in 2010. We have done a lot in the past 12 months - helping more than 5000 families - but we know we can do much more in the coming year.” “We thank you for your loyalty and for sharing our mission to eradicate poverty housing. We hope that you will continue on this journey as we enter the year ahead.”

Our donor “Habitat for Humanity Australia is a unique organisation, which encourages individuals to volunteer for community programs, delivering tangible benefits for those in need. More than that, it’s a low-maintenance organisation that spends its funds wisely.” John Connor - donor since 2005

Annual Report 2010 | 23

Project accountability Chandra Sharma

Chandra spent six years working in the not-for-profit sector before joining Habitat for Humanity Australia as Finance Manager in November 2009. He feels Habitat for Humanity deals with the most crucial and basic human need - shelter. One of the best parts of working for Habitat for Humanity Australia, according to Chandra, is visiting the projects and observing the changes the organisation is making to people’s lives. It gives him immense satisfaction and motivation for the future. He was amazed and inspired by the optimism of a family he recently met while on a trip to Indonesia - their different living situation belied their positive and enthusiastic outlook.

24 | Habitat for Humanity Australia

“We’re diligent about our responsibility and accountability in ensuring that funds are delivering expected outcomes. That’s why we visit various sites to review project finance procedures, assess partner capacity and provide adequate training and support. These visits also include meetings with beneficiary families to obtain feedback and build our relationship with them. The visits allow time to assess the impact our assistance will have on the local community and to address any issues which may have arisen during a project’s implementation.”

“In Bitung, Indonesia, I had the opportunity to visit a community settlement to confirm that 15 families within the local community required assistance. At a meeting with a local community leader we were able to agree project objectives, design and outcomes. It was great to see such an enthusiastic response from the community eagerly looking forward to the project and, in particular, brick laying training and the income generation program.”

Annual Report 2010 | 25

Financial report For the year ended 30 June 2010

This financial report has been prepared in accordance with the ACFID code of conduct. For full information on the Code please refer to the ACFID Code of Conduct Guidance Document available at www.acfid.asn.au

Independent audit report

26 | Habitat for Humanity Australia

Independent audit report (continued)

Annual Report 2010 | 27

Directors’ Report Directors The names and details of the Company’s directors in office during the financial year and until the date of this report are as follows: Names, qualifications, experience and special responsibilities Date of Appointment

Date of Retirement/ Resignation

Position

Experience/Professional background

Christine Franks

Chairperson

Company Director and Management Consultant

1-Jul-08

David Benn

Director

Company Director and Management Consultant

1-Jul-08

James Allardice

Director

Company Executive

1-Jul-08

11-Dec-09

Kerry Bartlett

Director

Teacher

1-Jul-08

10-Aug-10

Peter Schulze

Director

Management Consultant

1-Jul-08

Graeme Sinclair

Director

Company Director

1-Jul-08

Shannon Hood

Director

Project Officer

11-Dec-09

Hugh Martin

Director

Company Executive

11-Dec-09

Paul Mulroney

Director

Magistrate

12-Feb-10

Zlatko Todorcevski

Company Secretary

Corporate Executive

12-Apr-10

Sue Baker-Finch

Director

Company Director

7-Jun-10

Corporate Information

Habitat for Humanity Australia (HFHA or the Company) is a non-profit Company Limited by Guarantee and domiciled in Australia. The registered office of the HFHA is in New South Wales, Australia. The entity employed twelve employees as at 30 June 2010 (twelve employees as at 30 June 2009)

Corporate Address

Suite 2, Level 9, 20 Berry St North Sydney NSW 2060 Australia

Principal Activities

The principal activities during the year of HFHA were activities associated with the provision of affordable housing to low income families. There have been no significant changes in the nature of those activities during the year.

Operating and Financial Review

The total revenue of HFHA was $ 3,814,615 (2009: $ 3,520,415) and expenses of $4,061,338 (2009: $ 2,998,517) resulting in a deficit of $ 246,723 (2009: excess $ 521,898).

Significant Changes in the State of Affairs

There have been no significant changes in the state of affairs of HFHA during the period.

28 | Habitat for Humanity Australia

Directors’ Report (continued) Significant Events After the Balance Date

There have been no significant events occurring after balance date which may affect either HFHA’s operations or results of those operations or the HFHA’s state of affairs.

Likely Developments and Expected Results

The business of the organisation is expected to grow significantly both in terms of number of families supported within Australia and Asia Pacific region and volume of financial transactions next year.

Environmental Regulation and Performance

The Company is not subject to any significant environmental regulation.

Indemnification and Insurance of Directors

The Company has an insurance contract to indemnify directors for any breach of the Trade and Employement Practice Act or discrimination laws for which they could be held personally liable.

Director’s Meetings Number of meetings held while in office

Number of meetings attended

Christine Franks

David Benn

James Allardice

Kerry Bartlett

Peter Schulze

Graeme Sinclair

Shannon Hood

Hugh Martin

Name of Director

Paul Mulroney

Zlatko Todorcevski

Sue Baker-Finch

Committee Membership

Directors acting on the committees of the Board and the meetings attended are as follows:

Finance and Audit Committee Number of meetings held while in office

Number of meetings attended

Peter Shulze

David Benn

Graeme Sinclair

Name of Director

Auditor’s Independence Declaration

The directors have received an Independence Declaration from the Auditors, which is included on page 31 of the financial report.

Annual Report 2010 | 29

Directors’ Declaration In accordance with a resolution of the directors of Habitat for Humanity Australia, I state that: In the opinion of the directors: (a) the organisation is not a reporting entity as defined in the Australian Accounting Standards (b) the financial statements and notes of the HFHA are in accordance with the Corporations Act 2001, and: (i) give a true and fair view of the Company’s financial position as at 30 June 2010 and of its financial performance for the year ended on that date; and “ (ii) comply with Accounting Standards to the extent described in note 2 to the financial statements and the Corporations Act 2001; and (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the directors. On behalf of the Board

Christine Franks Chairperson

Graeme Sinclair Chairperson, Finance and Audit Committee

Sydney, 11 October 2010

Melbourne, 11 October 2010

30 | Habitat for Humanity Australia

Auditorâ&#x20AC;&#x2122;s Independence Declaration

Annual Report 2010 | 31

Income Statement

For the year ended 30 June 2010 Notes

2010

2009

REVENUE Donations and Gifts - Monetary - Non-monetary Bequests and Legacies Grants - Overseas

2,918,583

2,490,438

131,278

130,631

2,373

682,891

765,533

Investment Income

3(a)

66,725

99,146

Other Income

3(b)

15,138

32,294

3,814,615

3,520,415

1,462,810

752,045

381,916

335,105

28,451

- Public

656,573

632,511

- Government, multilateral and private

105,546

213,241

Accountability and Administration

403,964

499,827

17,841

18,382

- Exchange Loss

19,246

11,839

Finance Costs

16,326

24,290

3,064,222

2,515,691

478,548

228,766

- NPV Charge on loan to Affiliates & former Affiliates

220,338

127,904

- Australian Affiliates Loans write off

166,952

131,278

96,135

30,021

997,116

482,826

TOTAL EXPENDITURE

4,061,338

2,998,517

EXCESS OF REVENUE OVER EXPENDITURE

(246,723)

521,898

Revenue for Intâ&#x20AC;&#x2122;l, Political and Religious Proselytisation Programs

TOTAL REVENUE EXPENDITURE International Aid and Development Programs Expenditure International Programs - Funds to international programs - Program support costs Community Education Fund Raising Costs

Non-monetary Expenditure - Depreciation

Total International Aid and Development Programs Expenditure Expenditure for Intâ&#x20AC;&#x2122;l, Political or Religious Proselytisation Programs

3(c)

Domestic Programs Expenditure Program expenditure and support cost Non-monetary Expenditure

- Contributed services - Amortisation of Lease Incentive

Total Domestic Programs Expenditure

32 | Habitat for Humanity Australia

Statement of Comprehensive Income For the year ended 30 June 2010

Excess of revenue over expenditure for the year

2010

2009

(246,723)

521,898

Other comprehensive (loss)/income

Other comprehensive (loss)/income for the year

(246,723)

521,898

Total comprehensive (loss)/income for the year

Annual Report 2010 | 33

Balance Sheet

For the year ended 30 June 2010 Notes

2010

2009

ASSETS Current Assets Cash and cash equivalents

749,329

685,224

Trade and other receivables

342,759

284,631

Other financial assets - loans and receivables

58,508

118,929

1,150,596

1,088,784

Total Current Assets Non-Current Assets Other financial assets - loans and receivables

279,353

708,594

Property, plant and equipment

2,964

20,805

282,317

729,399

1,432,913

1,818,183

Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables

59,063

55,963

Borrowings

47,046

27,448

10,494

21,128

Current tax liabilities Lease incentive liability Provisions

25,796

35,782

Deferred revenue

417,874

520,600

551,309

691,013

Other financial liabilities

12,126

10,969

Total Non Current Liabilities

12,126

10,969

TOTAL LIABILITIES

563,435

701,982

NET ASSETS

869,478

1,116,201

869,478

1,116,201

869,478

1,116,201

Total Current Liabilities Non Current Liabilities

EQUITY Retained Earnings

TOTAL EQUITY At the end of financial year Habitat for Humanity Australia had no balance in the Inventories, Assets held for sale, Investment Property and Intangibles categories.

34 | Habitat for Humanity Australia

Statement of Changes in Equity For the year ended 30 June 2010 As at 1 July 2008

Retained earnings at the beginning of the year

594,303

Excess of revenue over expenditure for 2009

521,898

Other amounts transferred (to) or from reserves

As at 30 June 2009

1,116,201

Changes in equity from adjustments

Excess of revenue over expenditure for 2010

(246,723)

Other amounts transferred (to) or from reserves

As at 30 June 2010

869,478

Table of Cash Movements for the Designated Purposes Cash Movements for the year ended 30 June 2010 Cash available at beginning of year ($)

Cash raised during year ($)

Cash disbursed during year ($)

Cash available at end of year ($)

Designated purposes Designated purposes -Overseas Program

460,583

1,550,041

1,518,213

492,411

Designated purposes -Domestic Program

43,587

477,687

373,864

147,410

181,054

1,602,990

1,674,536

109,508

685,224

3,630,717

3,566,613

749,329

Other purposes

Total

Cash Movements for the year ended 30 June 2009 Cash available at beginning of year ($)

Cash raised during year ($)

Cash disbursed during year ($)

Cash available at end of year ($)

Designated purposes Designated purposes -Overseas Program

437,638

1,551,635

1,528,690

460,583

Designated purposes -Domestic Program

154,822

446,903

558,138

43,587

36,691

1,958,897

1,814,534

181,054

629,151

3,957,435

3,901,362

685,224

Other purposes

Total

Annual Report 2010 | 35

Cash Flow Statement

For the year ended 30 June 2010 Notes

2010

2009

Cash flows from operating activities Receipts from customers

3,567,006

3,590,677

(3,610,041)

(3,244,556)

15,898

25,111

(16,326)

(24,290)

(43,463)

346,942

(509,714)

154,614

266,239

Purchase of property, plant and equipment

(2,000)

Receipt from property, plant and equipment

408

154,614

(245,067)

75,000

(47,046)

(120,802)

(47,046)

(45,802)

64,105

56,073

685,224

629,151

749,329

685,224

Payments to suppliers and employees Interest received Interest paid

Net cash flows from operating activities

Cash flows from investing activities Loans provided to affiliates Repayment of loans by affiliates

Net cash flows (used in) investing activities Cash flows from financing activities Receipt of loans Repayments of loans Dividends paid to minority interest

Net cash flows from/(used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

36 | Habitat for Humanity Australia

Notes to the Financial Statements 1. CORPORATE INFORMATION The financial report of Habitat for Humanity Australia for the year ended 30 June 2010 was authorised for issue in accordance with a resolution of the Directors on 11 October 2010. Habitat for Humanity Australia is a Company Limited by Guarantee incorporated in Australia. The nature of the operations and principal activities of the Company are described in the Directors’ Report.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Preparation This special purpose financial report has been prepared for distribution to the members to fulfil the Company’s financial reporting requirement’s under the Corporations Act 2001 and the Company’s constitution. The accounting policies used in the preparation of this financial report, as described below, are consistent with the financial reporting requirements of the Corporations Act 2001 and the Company’s constitution, and with previous years, and are, in the opinion of the National Board of Directors, appropriate to meet the needs of members: (i)

The financial report has been prepared on a historical cost basis except for loans to the Affiliates and former Affiliates which are measured at fair value.

(ii) The financial report is presented in Australian dollars. (iii) The disclosure requirements of Accounting Standards and other financial reporting requirements in Australia do not have mandatory applicability to Habitat For Humanity Australia because it is not a ‘reporting entity’. However, management have prepared the financial report in accordance with Accounting Standards and other mandatory financial reporting requirements in Australia. Disclosure requirements have not been adopted with the exception of the following: AASB 101: AASB 107: AASB 108: AASB 1048:

Presentation of Financial Statements Cash Flow Statement Accounting Policies, Changes in Accounting Estimates and Errors Interpretation and Application of Standards

(b) Statement of Compliance The special purpose financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS).

(c) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the HFHA and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: (i)

Cash contributions received or receivable are recognised as revenue when: a. HFHA obtains control of the contribution or the right to receive contribution b. it is probable that the economic benefits comprising the contribution will flow to the HFHA, and c. the amount of the contribution can be measured reliably

Income is measured at the fair value of the contributions received or receivable.

(ii) HFHA receive restricted contributions from third parties under the following arrangements: - Grants received from Habitat for Humanity International (HFHI) for the designated purpose such as for mass marketing. -

Grants received from Corporate Sponsors and Donors for the domestic and international projects.

Grants received from individual donors for specific projects or countries.

Where the funds are restricted, the amounts received are recognised as deferred income until such time the funds are expensed on the designated project.

Annual Report 2010 | 37

Notes to the Financial Statements (continued) (iii) Income arising from the contribution of assets or services (gifts in kind) is recognised when all the following conditions have been satisfied: a. HFHA obtains control of the contribution or the right to receive the contribution; b. it is probable that the economic benefits comprising the contribution will flow to the HFHA; and c. the amount of the contribution can be measured reliably

Income is measured at the fair vaule of the contributions received or receivable

(iv) Interest Finance income on financial assets is recognised as it accrues using the effective interest rate.

Interest income from banks is recognised as and when it accrues to the company.

(v) Global Village Voluntary hours contributed by the Global Village volunteers in building homes for the low income families in the Asia Pacific region have been translated into monetary terms by applying AusAID criteria. The total monetary value of the volunteer hours in 2010 is $193,523 This amount has not been recognised as income in the Income Statement.

(d) Program expenses Transfers to the overseas Partner Organisations (PO) are not recognised as expenses until financial reports are received and acquitted. Transfers to the domestic affiliates are recognised as an expense on transfer unlike in previous years when transfers were made as a loan arrangement. The program transfers to Australian affiliates during the financial year 2010 amounted to $ 373,864.

(e) Exchange gain/loss HFHA has the following policy with regards to exchange gain/loss: a. In case of funds transferred by HFHA, the overseas PO convert the AUD into local currency using the rate prevailing on the day i.e. the money actually credited to their account by the bank b. For the purpose of quarterly financial reports, the PO convert the local currency into AUD averaging the rate prevailing on the first day and last day of the month during the Quarter. c. assets and liabilities for each balance sheet presented such as closing cash balance pending acquittal are translated at the closing rate at the date of that balance sheet.

(f) Leases Operating lease payments are recognised as an expense in the income statement on a straight-line basis over the lease term .

(g) Cash and cash equivalents Cash and short-term deposits in the balance sheet comprise cash at bank and in hand.

(h) Trade and other receivables Trade receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence that the HFHA will not be able to collect the debts. Bad debts are written off when identified.

(i) Income tax HFHA has separate endorsements as an income tax exempt charitable entity for international and domestic funding and as such incurs no liability to pay income tax.

38 | Habitat for Humanity Australia

Notes to the Financial Statements (continued) (j) Other taxes Revenues, expenses and assets are recognised net of the amount of GST except: a. where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and b. receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(k) Property, plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.

Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:

Furniture – over 5 years Computer Hardware – over 3 1/3 years Computer Software – over 2 years

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end.

(l) Trade and other payables

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the HFHA prior to the end of the financial year that are unpaid and arise when it becomes obliged to make future payments in respect of the purchase of these goods and services.

(m) Financial Assets and Liabilities

Financial assets and liabilities are initially recognised at fair value through the profit and loss account. After initial recognition, financial assets and liabilities are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when financial assets and liabilities are derecognised or impaired. Financial assets and liabilities are classified as current when they are expected to be settled within twelve months from year end.

(n) Employee leave benefits

Wages, salaries and leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and long-service leave at the end of fiscal year are recognised in provisions in respect of employees’ services up to the period.

Annual Report 2010 | 39

Notes to the Financial Statements (continued) 3

June 2010 $

June 2009 $

Notional Interest on Affiliate Loans

50,827

74,035

Bank Interest Received

15,898

25,111

Total finance income

66,725

99,146

Miscellaneous Income

15,138

32,294

Total other income

15,138

32,294

Furniture and fittings

1,342

972

Computers

1,525

2,436

Computers-software

14,974

Total depreciation expense

17,841

18,382

Cash at bank

748,829

684,724

Cash in hand

500

749,329

685,224

Trade receivables

299,482

266,219

Accrued Interest

1,484

Prepayments and Others

20,834

GST Receivables

20,959

18,412

342,759

284,631

58,508

118,929

58,508

118,929

279,353

708,594

279,353

708,594

REVENUE AND EXPENSES a. Finance income

b. Other income

c. Depreciation expense Depreciation of non-current assets

CASH AND CASH EQUIVALENTS

Cash at bank earns interest at floating rates based on daily bank deposit rates.

TRADE AND OTHER RECEIVABLES

FINANCIAL ASSETS: LOANS AND RECEIVABLES Current Loans to Affiliates and former Affiliates Non Current Loans to Affiliates and former Affiliates

(i)

Loans to affiliates and former affiliates are interest-free and unsecured.

(ii)

Donations provided by HFHA corporate sponsors for housing projects to the Affiliates were treated as longterm loans until the prior year. From financial year 2010, the affiliates are required to only pay half of the monthly instalments of the loan. The balance of 50% has been forgiven by HFHA. The present value of the future forgiveness has been written off during the year.

40 | Habitat for Humanity Australia

Notes to the Financial Statements (continued) 7

June 2010 $

June 2009 $

58,210

(58,120)

(56,595)

1,615

29,948

(29,948)

(14,974)

14,974

6,709

(3,835)

(2,493)

2,874

4,216

2,964

20,805

Trade and other creditors

36,443

52,925

Habitat programs

22,620

3,038

59,063

55,963

47,046

25,796

35,782

417,874

520,600

417,874

520,600

Balance at the beginning of the year

1,116,201

594,303

Excess of revenue over expenditure

(246,723)

521,898

869,478

1,116,201

PROPERTY, PLANT AND EQUIPMENT Computers At cost Accumulated depreciation Net carrying amount Computer Software At cost Accumulated depreciation Net carrying amount Furniture At Cost Accumulated depreciation Net Carrying amount Total Plant and Equipment

TRADE AND OTHER PAYABLES

Trade payables are non-interest bearing and are normally settled on 30-day terms. Other payables are non-interest bearing and have an average term of 30 days.

BORROWINGS Bank line of credit

Bank line of credit account has a credit limit of $200,000.

PROVISIONS Provision for employee entitlements

DEFERRED REVENUE Donations received in relation to future projects

Refer to Notes to the Financial Statements para 2(c).

EQUITY

Balance at the end of the year

Annual Report 2010 | 41

Notes to the Financial Statements (continued) 13

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO OPERATING SURPLUS AFTER INCOME TAX Operating (loss)/surplus after income tax

June 2010 $

June 2009 $

(246,723)

521,898

17,841

18,382

30,021

Adjustments for non-cash income and expense items: Depreciation expense Amortisation of lease incentives Exchange loss Non monetary revenue Non monetary expenditure Imputed interest income on affiliate loans Loan write offs Increase in financial liability NPV charge on loan to affiliates

19,246

11,839

(131,278)

(130,631)

131,278

96,135

(50,827)

(74,045)

166,952

(1,157)

220,339

127,904

(76,477)

(90,126)

3,100

(9,968)

(9,986)

1,793

Working capital adjustments: (Increase)/decrease in trade and other receivables Increase/(decrease) in trade payables Increase/(decrease) in provisions Increase/(decrease) in other payables

16,955

1,671

Increase/(decrease) in deferred revenue

(102,726)

(157,931)

Net cash provided from operating activities

(43,463)

346,942

EVENTS AFTER BALANCE SHEET DATE There have been no significant events occurring after balance date which may affect either HFHA’s operations or results of those operations or HFHA’s state of affairs.

COMMITMENTS AND CONTINGENCIES Operating lease commitments – HFHA as lessee HFHA have entered into commercial lease on its premises where it is not in the best interest of HFHA to purchase these assets. The lease has a life of 36 months with renewal terms included in the contracts. Renewal is at the option of HFHA. There are no restrictions placed upon the lessee by entering into this lease. Future minimum rentals payable under the non-cancellable operating lease as at 30 June are as follows:

June 2010 $

June 2009 $

Within one year

68,354

84,510

After one year but not more than five years

101,556

169,020

More than five years

169,910

253,530

Contingent liabilities HFHA has indemnity guarantees in relation to its lease for a total amount of $ 61,406.

MEMBERS GUARANTEE HFHA has 182 members as at the end of the year, and there is no limit on the number of members allowed under the HFHA Constitution. All the directors are members of the HFHA Consititution. In the event of winding up of the HFHA, the members have no liability to contribute towards the payment of debts and liabilities of the Company or the cost, charges and expenses of the winding up of the Company except to the amount of unpaid membership fees.

42 | Habitat for Humanity Australia

How to create a habit(at) for humanity It’s easy to form good habits with Habitat for Humanity, Australia. If you believe in a world where everyone deserves a safe and decent place to live, your good habits can transform the lives of people here and around the world.

Habit number one: Make a One-Off Donation

Make one-off donations to support an appeal of your choice. This way you can vary the amount to suit what you can afford at the time, with amounts fully tax deductible.

Habit number two: Become a HopeBuilder

Our HopeBuilders sign up for regular monthly donations of their choice from their bank account or credit card and are the backbone of our support.

Habit number three: Include us in your Will

Habitat for Humanity Legacy Builders have included us in their wills, knowing their contribution will go on to create an enduring legacy of hope, enabling some of the poorest families in the world to build safe and secure homes.

Habit number four: Volunteer

There’s nothing like getting your hands dirty to know you’re making a difference. Help build homes for families within Australia, or travel overseas with our Global Village program.

Habit number five: Become a Corporate Partner

By donating funding or building materials, a corporate partnership can provide your company with a unique opportunity to engage employees and get involved, while helping to build homes for families in need.

Habit number six: Fundraise

fund-raising activities: host a dinner party or trivia night, hold an auction or raffle, clear out your rubbish for cash with a garage sale, or ask your friend to sponsor you in an event and direct your funds to Habitat for Humanity Australia. Many companies like to support their employees’ fundraising efforts by matching the funds they raise, so you might like to ask your company to consider this.

Habit number seven: Get Involved

Contact your local Habitat for Humanity office and find out how you can help. You could gain or utilise skills by helping to build a home or volunteer your time to help out in our offices or promoting our various programs.

There are many ways you can help us raise funds and support our building program. Here are some ideas from recent

“Good habits build hope”

Annual Report 2010 | 43

For their assistance in producing the 2010 Annual Report, we would like to thank… • Auditors - Ernst & Young • Design - Sensory Creative • Photographer - Belinda Mason • Report typeset in ‘Router’ courtesy of Jeremy Mickel, mickeldesign.com • Assistant editor - Anna Le Masurier • Printers - Dobson’s Printing • Paper supplier - Raleigh Paper

This annual report is printed on ecoStar. ecoStar Coated is an environmentally responsible paper made carbon neutral. The greenhouse gas emissions of the manufacturing process including transportation of the finished product to Raleigh Warehouses has been measured by the Edinburgh Centre for Carbon Management (ECCM) and offset by the CarbonNeutral Company and the fibre source has been independently third party certified. ecoStar Coated is manufactured from 100% post consumer recycled paper in a process chlorine free environment under the ISO 14001, ISO 9001 & ISO 9706 environmental management systems. ecoStar Coated is European Eco-Label certified.

Habitat for Humanity Australia PO Box 1048 North Sydney NSW 2059 FreeCall: 1800 88 55 99 www.habitat.org.au