Habitat for Humanity Annual Report 2011 by Habitat for Humanity Australia

Annual Report 2011

A world where everyone has a safe and decent place to live.

Our vision is a world where everyone has a safe and decent place to live.

Contents About Habitat for Humanity Australia �� 02 Our achievements this year �� 03 A message from our Chair �� 04 Our Board of Directors ��06 A message from our CEO �� 10 Celebrating International Women’s Day, hand in hand ��11 Our achievements in Australia ��12 Home partner case study ��14 Our achievements overseas �� 16 Our Global Village program ��18 Many hands make light work �� 19 A wealth of support �� 20 Our partners ��21 Our year in figures ��22 Financial report ��24 Show your support ��43 ACFID Code Habitat for Humanity Australia is a signatory to the ACFID Code of Conduct – a voluntary industry code. 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 its commitment to ethical practice in our operations in Australia and internationally. Habitat for Humanity Australia has a process for handling complaints. Should you have a complaint please direct this to the CEO, Jo Brennan, on 1800 885 599 or at info@habitat.org.au. For more information please visit www.acfid.asn.au. This document can also be viewed at www.habitat.org.au

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About Habitat for Humanity Australia

Habitat for Humanity is in the business of building homes, communities and hope, and is the worldâ&#x20AC;&#x2122;s number one not-for-profit provider of housing for lowincome 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 works in thousands of communities and has built, rehabilitated and repaired over 500,000 homes, sheltering more than 2 million people. Currently, every 7 minutes, a family has a better home and a better life thanks to Habitat for Humanity and its volunteers and partners. Habitat for Humanity Australia, as part of the Habitat for Humanity International network, plays a vital role in supporting families and communities in Australia and Asia.

We believe it all starts at home

We provide a hand-up not a hand-out

We do more than houses

We believe a stable, secure home creates the foundation for change, giving people the opportunity to be healthier, happier and more secure, and for children to be better nourished and better educated. We believe building a decent home is much more than bricks and mortar â&#x20AC;&#x201C; it provides real hope for the future.

We give families a hand-up not a hand-out by building homes and communities in partnership with families both in Australia and overseas. They put in labour and a deposit, and we assist with the expertise and financing. Importantly, as the no-profit loan is repaid, it helps to finance even more homes for people in need, so with Habitat your dollar goes further.

We donâ&#x20AC;&#x2122;t just provide a roof â&#x20AC;&#x201C; we build communities. We address water supply and sanitation issues, provide health and education in some communities, as well as financial literacy and livelihood training.

Our achievements this year 11 Australian families achieved the dream of home ownership. ver 40 projects are in the O pipeline in Australia. rush with Kindness assisted B 35 families in Queensland and Victoria in response to natural disasters. e worked in partnership with W families and communities in 6 countries across Asia: Bangladesh, Nepal, Afghanistan, Cambodia, Vietnam and Indonesia.

53 households across Asia were 3 assisted through the provision of core housing, home repair and rehabilitation. 83 volunteers joined the Global 3 Village program and travelled overseas to help build homes alongside families in Nepal, Malaysia, Cambodia, Vietnam, Indonesia, the Philippines and Fiji. 1 00 Australian women travelled to Nepal to celebrate the Centenary of International Womenâ&#x20AC;&#x2122;s Day and assist 250 female-headed households.

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A message from our Chair Chris Franks At Habitat for Humanity Australia we bring happiness, hope and a new life to thousands of families every year. We achieve this by going beyond the limits of what we think is possible on a daily basis. There is no better place to see this in action than on a Habitat build and in the past year, Iâ&#x20AC;&#x2122;ve been to builds in Australia, Cambodia and Nepal. It is a real privilege to build alongside the new homeowners who know their lives are about to change for the better, and to be humbled by their gratitude and hard work. I never cease to be surprised at just how much our small and dedicated team achieve. They bring a diverse range of skills and expertise and have again made an immense contribution. We are grateful for their willingness to give hope for a brighter and safer future to thousands of families. On behalf of the Board I want to particularly thank our energetic and committed CEO Jo Brennan who has led this keen and skilled team to reshape and reinvigorate Habitat for Humanity Australia. Thank you to the directors of the Habitat Australia Board who bring deep knowledge, broad experience and significant expertise to help grow our organisation. They give significant time and

fund their own travel and accommodation to attend meetings; this is a major commitment and contribution for our interstate directors. In addition directors make significant donations to support Habitat Australiaâ&#x20AC;&#x2122;s growth. Thank you sincerely to our recently retired directors who gave us a hand-up to a new level of professionalism and capability in the past year, especially David Benn whose vision shaped Habitat for Humanity Australia. David left to take a welldeserved trip with his wife Carolyn after a long and distinguished involvement with the organisation. As we enter a new year, Habitat for Humanity Australia is working efficiently and ready to go beyond the limits of its size to reach more families, share more stories of our work and achieve financial sustainability. We face those challenges with confidence and optimism, and we have a strong ally in God who is with us as we build, supporting us in our endeavours.

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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 for two-year terms. The constitution sets limits on the maximum period that directors may serve on the board. There are currently nine appointed directors on the Board of Habitat for Humanity Australia.

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 non-Executive Director of CUA and CUA Health, Chair of the CUA Sustainability Committee and Chair of Creditcorp Insurance Pty. 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 Childrenâ&#x20AC;&#x2122;s Foundation, Oxfam, Save the Children NSW and the Australian Consumersâ&#x20AC;&#x2122; Association - CHOICE.

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Suellen Holmes

Robyn FitzRoy

Suellen is a CPA and Chartered Secretary with experience across public practice, commerce and the not-for-profit sector. She is Chair of the Finance and Audit Committee and Treasurer and Secretary of Habitat for Humanity Australia. Suellen also holds other current governance positions as Company Secretary and Director of Business & Finance for the Australian Industry Trade College on the Gold Coast, Committee Member on the Capital Advisory Committee for the Queensland Independent Schools Block Grant Authority and Treasurer on the Committee of Management of Elevation Church and Elevation Care.

Robyn is a governance and board performance specialist, offering these services as Principal of her own company. Robyn brings considerable financial, marketing, strategy and risk management skills to the Habitat for Humanity Australia Board to which she was appointed in 2010. She is also Chair of WealthPortal Pty Ltd. Robyn is a former Executive Director of Macquarie Bank and a former director of Cuscal where she chaired the Board Governance Committee. Other roles include the facilitation and writing of courses for the Australian Institute of Company Directors and adviser to various Director Nomination Committees. In 2001, Robyn won the Women in Management Achiever of the Year Award.

(Treasurer and Secretary)

Natalie Fuller

Colin Goodall

Natalie has been actively involved with Habitat for Humanity since 2001 leading Global Village teams and participating in Jimmy Carter builds. She is also a Board member of Habitat for Humanity South Australia. She has 30 years experience in community development and social planning and has held senior positions in state and local government and the private and non-government sectors. Natalie has extensive experience in engaging communities and assessing human service planning requirements of greenfield housing developments and urban infill mixed use redevelopments. In 1998 Natalie established her own consultancy firm and is currently undertaking a PhD that examines skilled migration to Australia.

Colin is an FCA, CTA. Chair of Sindicatum Holdings, a sustainable energy company, based in Singapore and Senior Non-Executive Director of Lamprell plc, a Dubai-based construction company listed on the London market. He is also Chair of Golden Horde Pty Ltd, an Adelaide-based company exploring coal bed methane prospects in Mongolia, and newly appointed Non-Executive Director of AFEX holdings, an exploration company operating in West Africa. In 1999 Colin retired from BP as a senior member of management after a long career in Europe, the USA, the Middle East and Russia. He advised Peabody Trust, the largest provider of social housing in greater London on financial restructuring and participated in the reorganisation and fundraising of a charity that established and runs a school for street children in Guatemala.

Shannon Hood Shannon began his career as a manufacturing engineer with Skilled Engineering. During this time he trained as an accountant and then worked as a management consultant with Deloitte Touche Tohmatsu in Melbourne, Adelaide and Tokyo. In 2003 Shannon studied 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.

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Our Board of Directors (cont.)

Hugh Martin

Paul Mulroney

Doug Talbert

Hugh is Executive Director of Vivas Lend Lease with over 30 years experience in the property industry, internationally and in Australia. 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.

Since January 2001 Paul has been a Children’s Court magistrate in New South Wales. He is currently Chairman of Habitat for Humanity, New South Wales, and was previously a member of the Habitat for Humanity Australia Board from 2001 to 2005. Prior to his appointment as a magistrate, he worked for more than 20 years as a lawyer for Legal Aid. Paul 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 Church Council member and Elder of the Market Place Uniting Church in Bondi Junction. He is also a lay preacher.

Doug is a solicitor and banker with extensive knowledge of property financing and construction. He has been involved on all sides of the property industry and currently owns a successful property management business. Doug is involved in a range of charities and not-for-profit organisations including The Housing Connection (past President), The Machado Joseph Foundation (Treasurer), Calvary Health Care (Board Member) and Habitat for Humanity Australia. Doug also works as a carer for aged people and volunteers at Greenwich Hospital and the MS Society. His particular concerns are for the disenfranchised, the disabled and the aged. Doug holds degrees in economics, law and ethics.

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Thanks to Directors retiring this year

David W Benn (Immediate past Chair) David brought his significant expertise and skills to Habitat for Humanity Australia, gained during an illustrious career in international banking, finance, funds management, consulting and IT contracting. His community leadership roles included Chairman of the Fulbright Commission, President of the American Club, Sydney, Chairman of the Parish Council of St Stephenâ&#x20AC;&#x2122;s Church, Sydney, and a number of other charitable and community organisations. David served on the Board for nine years, including two as Chair. During this time he built a stronger organisation that is well placed to service communities in both Australia and Asia. David worked tirelessly and Habitat for Humanity Australia today is a testament to his skills, professionalism and expertise. The Board would like to thank David for the significant contribution he made and his cheerful leadership. We are delighted that he remains a member, a strong supporter and an advocate for the work of Habitat for Humanity.

Graeme Sinclair

Sue Baker-Finch

Graeme brought more than 30 years experience in accounting, investment and wealth management services to Habitat Australia. From the Myer Family Group, Graeme continues to be involved with Habitat for Humanity Victoria.

Sue was a Director of the Illawarra Business Chamber, Wollongong City Centre Limited, as well as Habitat for Humanity Australia.

Peter Schulze

Zlatko Todorcevski Zlatko is the Chief Financial Officer of Oil Search Limited. He brought tremendous depth and breadth of experience in international financial matters to Habitat Australia, and served as Company Secretary.

Peter is Chairman of AFA Interactive. He chaired the International Programs Advisory Committee, taking the organisation through its initial AusAID accreditation. Peter is currently Chairman of Habitat for Humanity South Australia.

Hon. Kerry J Bartlett Kerry completed 12 years in Federal Parliament as the Member for Macquarie, including serving as the Chief Government Whip prior to joining the Habitat for Humanity Australia Board. He left to undertake ongoing leadership roles in a number of community organisations.

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A message from our CEO Jo Brennan

It has been an amazing year at Habitat for Humanity Australia. Each time I visit our projects and meet our project partners, I am moved by the significance of building homes, communities and most importantly, hope – and when we build hope, we build a future. Being part of this and sharing the experience of working with others on-site has been a great privilege. There have been two standout activities this year. We launched our most significant campaign yet, the 1,000 Homes for Hope appeal with the ambitious target of building 1,000 homes for 1,000 of the poorest families across our region. We are already one third of the way there and are working hard to ensure we meet this goal. In March, we celebrated the centenary of International Women’s Day with the Hand in Hand Build in Nepal. We brought together 100 women from across Australia who raised funds to support this project and provide homes, toilets, clean water, and sanitation and livelihood training for more than 250 female-headed families over the next two years. These women marked their commitment by travelling to Nepal and building the first ten homes hand in hand with the partner families on International Women’s Day itself. We can’t do any of the work we do without our partners. I want to especially acknowledge QBE LMI; we celebrated ten years of partnership in 2011. QBE LMI have demonstrated their ongoing commitment in our community, working to make a difference in people’s lives through their invaluable support over the past ten years.

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Our cash flow shows that locally raised funds increased by more than $320,000 this year. Additionally, in line with plans to become selfsufficient, Habitat for Humanity International’s funding reduced, meaning we raised a total of $500,000 more than last year. This is a pleasing outcome of the team’s hard work, which translates into more funds being invested in projects in the coming financial year. Habitat for Humanity Australia is about working hand in hand with families, helping them to overcome financial and social obstacles, and often intolerance and discrimination. I am very proud of the work that Habitat for Humanity Australia has done in helping change the world for the better.

Celebrating International Women’s Day, hand in hand Janette van Kernebeek – Hand in Hand volunteer

In March 2011, 100 women, mainly from Australia, travelled to Nepal to help build the first ten houses for 250 female-headed households. When Janette van Kernebeek first heard about the trip, she thought it would be a good opportunity to get actively involved, get her hands dirty and make a positive contribution to the lives of Nepalese women. The Hand in Hand Build saw teams of ten women per house build a new home in five days, with the assistance of home partners and local tradespersons.

Janette considers her time as a volunteer with Hand in Hand in Nepal as a life-changing experience. In particular, getting to live and breathe Nepalese culture, working hard to ensure the team was able to hand over a house at the end of the week and getting to meet other women from diverse backgrounds were highlights. During the build, she worked in dedicated teams surrounded by inspiring women and while fundraising for the build, she was humbled by the amazing generosity of friends, family and colleagues.

“Initially, I was unsure how we would be perceived by the local community, but working with the local Habitat staff and seeing their projects firsthand it was easy to see how our money was being carefully managed and spent for the benefit of the broader community. Working with locals, I was encouraged to see that Habitat for Humanity is helping to build a sustainable workforce, by helping to support the livelihoods of local masons and carpenters, bringing numerous benefits to a broader community.”

“I’d like to return to Nepal to help finish the last ten houses of the planned 250 and revisit the Itahari community. It really was an emotional journey – to be hugged every day by our home partner Sakuntala and her young four-yearold son and knowing we were building them a safe and secure home. I would definitely encourage others to do a build with Habitat.”

“It was easy to see how our money was being carefully managed and spent for the benefit of the community.”

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Our achievements in Australia Angela Emmerton – Australian Program Manager

In New South Wales This year Habitat for Humanity New South Wales continued to provide a ‘hand-up’ for families, completing two new homes as part of the Bidwill Blitz project, each taking 12 days from slab to completion. Our foundation sponsor QBE LMI and realestate. com.au made this achievement possible as well as the tireless efforts of family partners and volunteers. Two Sudanese war-torn, refugee families are now proud homeowners.

Habitat for Humanity Australia reached a major milestone this year, building its 100th home. A total of 105 new homes have been built for families living in housing distress in Australia. Our work is only made possible by the generous support of partners, sponsors and volunteers. A heartfelt thankyou goes to everyone involved. We also celebrated our tenyear partnership with QBE LMI, a significant milestone, and we look forward to many more years of working together to build better futures for more families.

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April 2011 saw the launch of a partnership between HFH NSW, TAFE and Junee jail – the Junee Prison Build. Supporters made commitments of cash, goods and services exceeding $185,000. Three houses will be built by inmates inside the jail in 2011 and transported to Habitat land in Junee and elsewhere in the Riverina.

“QBE LMI is delighted to celebrate our ten-year partnership with Habitat for Humanity. Our focus as a foundation partner is about providing opportunities for families who have gone through hardship. Habitat Australia offers us a unique opportunity to contribute to the community and share in the same values that everyone has a right to a safe and decent place to live. Our people enjoy getting involved in lots of hands-on voluntary work both here and around Asia and we look forward to continuing this important work together.” – Ian Graham, CEO, QBE LMI.

In Queensland Habitat for Humanity Queensland responded to the Queensland floods in January by implementing the Brush with Kindness program in partnership with ACC International Relief. The program helped repair the homes of families devastated by the floods and to get their lives back on track. Habitat International Disaster Corp volunteers assisted with this mammoth task. Habitat volunteers also assisted The Renovators television show with repair works for a family affected by the floods.

In South Australia It has been a great year for Habitat for Humanity South Australia with four houses handed over, four under construction and the commencement of the Edgecombe Neighbourhood Rejuvenation Project in Davoren Park where 15 houses will be built over the next three years.

More than 25 Brush with Kindness projects were completed, thanks to the help of our faithful volunteers. Over 675 individuals, groups and corporate team members volunteered more than 4300 hours of labour, helping families affected by the 2009 bushfires. Volunteers are also actively involved in helping us to run the ReStore bargain centres at Ringwood and at Rosebud on the Mornington Peninsula.

In Western Australia Habitat for Humanity Western Australia completed its first house at the end of 2010 and has acquired land to build three new homes. Habitat WA is expanding its horizons and looking at opportunities to build in Port Hedland, Karratha, Kalgoorlie and Bunbury.

“Owning my own home means a great deal to me; our family as a whole has a sense of identity.” – Habitat for Humanity Australia Home Partner

Key partnerships were formed with schools (St Patricks Technical College, Para West, Craigmore High School and Fremont Elizabeth High), providing many students with construction training on Habitat projects. Many unemployed people are gaining skills and work experience on Habitat sites through a partnership with ASK Employment and Training Prospects. The Copley Development Project continues in SA’s far north and we expect this to lead to housing outcomes for Indigenous people in 2012/2013. The highlight of the year was presenting partner families with the keys to their new home. For us it was a thrill – for the families it was a life-changer. Without the extraordinary help of donors, supporters and volunteers none of this would have been possible.

In Victoria The past year has been a very rewarding one for Habitat for Humanity Victoria with four new homes provided at Warragul and Wyndham Vale for families in need of a safe and decent place to live. The Yea Project – our response to the 2009 Black Saturday bushfires – progressed throughout the year with planning permission for 25 new family homes approved. Infrastructure plans were submitted, bringing families affected by bushfires closer to experiencing housing security once again.

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Home partner case study Phea, Phnom Penh Project, Cambodia Phea is 31 and married with a 17-year-old daughter and four-year-old son. She has now lived in her Habitat home for nearly a year. Habitat for Humanity provided a loan for the house, as well as water, sanitation and nutrition training, and the government granted the land. The home is situated on a busy corner. The bottom floor and patio area are used for work, while the top floor – accessible via a ladder – is where the family lives and sleeps. Phea has set up a shop selling petrol, sugar cane, drinks, cosmetics and cigarettes. She also does laundry and sells water. Phea’s daughter assists her with the shop and the work at home. Phea said that all this would not have been possible without their Habitat home.

The new house has given Phea’s family safety and economic security. They have since been able to purchase a plot of land in Trapaing Anchanh, where her daughter’s house will be built.

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Our achievements overseas James Schell – International Program Manager

Strengthening our program in Asia

The international programs improve the lives of women, men and children around Asia. In his role, James has the privilege of witnessing these changes firsthand.

Habitat for Humanity Australia’s energetic and focused international program’s team had both a successful and rewarding year, growing and strengthening the program. The Australian community, through Habitat for Humanity Australia, is supporting communities with projects in Bangladesh, Cambodia, Indonesia, Nepal and Vietnam. We developed comprehensive country strategies to ensure the projects we support remain strategic and intentional throughout the year. This process has also strengthened our relationship with country partners.

Establishing our partnership with AusAID Habitat for Humanity Australia successfully used its first round of AusAID funding in a water, sanitation and hygiene project in the north of Bangladesh. We look forward to developing our relationship with AusAID further in the coming year.

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Increasing our disaster management capacity With the ever-increasing incidence of natural disasters, particularly in Asia, we have strengthened our disaster management capacity and will continue to develop our processes.

Improving development effectiveness Throughout the year, Habitat for Humanity Australia developed a Poverty Alleviation Performance Measurement Framework in order to articulate the effectiveness of the programs we support. This leading-edge framework allows us to more clearly track the real changes that our projects make in people’s lives.

“This leading-edge framework allows us to more clearly track the real changes that our projects make in people’s lives.”

This year, the assistance provided by Habitat Australia and the Australian community helped to improve living conditions for thousands of families across Asia.

Community Health

Shelter Security

600 families participated in a range of income generation and financial literacy training sessions, which have positively engaged community members and increased their skills and knowledge.

The living conditions of 353 families improved considerably through the provision of core houses, house repairs and rehabilitations. Families involved in Habitat Australia projects report having a strong increase in their sense of security, community and well-being.

1,689 families have improved access to water and sanitation facilities and 5,731 community members have increased knowledge on safe water, sanitation and hygiene practices. Community members now feel there is a strong increase in their levels of health after being involved in Habitat Australia projects.

Economic Security

Community Empowerment 178 community members participated in governance and life skills training. In particular, this actively engaged women within the community and increased their skill base.

Education 200 students in Afghanistan are attending school in permanent classrooms built by Habitat for Humanity Australia as opposed to makeshift tents. According to community members, our relocation projects have also resulted in strong increases in school attendance rates.

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Our Global Village Program Alexandra Mar Global Village Manager

The Global Village program gives Habitat’s supporters the opportunity to go out into the ‘field’ and see Habitat’s work in action. This year was the biggest yet for Global Village with nearly 400 willing and determined team members travelling to seven countries and building homes for over 30 families. Our Global Village participants are extraordinary people and their contribution to Habitat’s work is greatly appreciated, both in Australia and the destination country. By travelling overseas, Global Village team members have the opportunity to see firsthand the difference a safe and decent home makes to the lives of families in need. Global Village teams work alongside the family whose home they are helping to build. By sharing the hard work, a local meal and a few jokes along the way, team members soon understand the hope that this gesture of generosity can bring to the lives of people in need.

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This year, we organised the largest Australian Global Village build to date. When our international programs team identified a community of families in Nepal who needed our support, the team jumped at the opportunity to fund this project through a special event build. The Hand in Hand Build, which took place in Itahari, was a huge success with a team of 100 women building ten homes in one week. It is with generous and open hearts that our Global Village team members travel and change the world. These special supporters are more than just volunteers – they must meet a fundraising target for the project, which helps to drive the important work that Habitat does both in Australia and around the world. Through Global Village, you can combine your passion for Habitat’s development activities in a meaningful and hands-on way. Be part of the solution – visit www.habitat. org.au/globalvillage today!.

“The Hand in Hand build was a huge success with a team of 100 women building ten homes in one week.”

Many hands make light work Jon Blackwell – Global Village team leader

Several years ago, Jon Blackwell travelled to Cambodia with Habitat Australia as a team member and built just outside Phnom Phen. At the time, he was the CEO of WorkCover in New South Wales, where he formed a team. They have since built homes in Nepal, the Philippines and Mongolia. Jon’s philosophy is that many of us are already

doing a build where you get to meet the family and

fortunate enough in the West and have an obligation

their kids. You really get to know the local people

to help those less so. Like many of us, he’s given

and you donate your time and put in your own

to charities but wanted to see for himself what

labour. It’s hard work! I’ve never had an easy build,

happens to that money, and he says that a Global

but you feel as if you’ve left something behind – it’s

Village trip gives you that opportunity – “you get

a personal achievement.”

hands-on involvement!” “The wonderful thing about Global Village is that you get to work with families. I love travelling, but there’s a big difference between being a tourist and

“There’s a big difference between being a tourist and doing a build where you get to meet the family and their kids.”

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A wealth of support Laura Carniato â&#x20AC;&#x201C; Marketing and Fundraising Manager

The Fundraising and Marketing program took a big leap forward in 2011 with 111% growth in revenue from individual supporters. We also welcomed nine new partners during the year: realestate.com.au, Jord, MLC Foundation, RiskWise, Vietnam Airlines, Delta Airlines, ACA Research, Reborn and Steelcase. Supporters and donors generously contributed $3.9 million, taking us another step closer to our vision of a world where everyone has a safe and decent place to live. We set an ambitious target and launched our biggest fundraising appeal yet, 1,000 Homes for Hope. Our goal is to build 1,000 additional homes by the end of 2013 and implement 1,000 holistic housing solutions by the end of 2011. We are pleased to say that we have already built 275 homes and are well on our way to achieving our target. A gala event with Angela Catterns and Wendy Harmer raised more than $55,000 towards our 1,000 Homes for Hope Appeal. We also launched our signature event, High Tea for Habitat, which encourages people around Australia to host a high tea at work or at home and a media event was held to mark World Habitat Day and officially launch High Tea for Habitat during October. Our new branding was rolled out and includes five new icons representing shelter, water and sanitation, health, education and livelihood support to demonstrate the holistic work we do. We welcomed over 3,000 new supporters and were delighted to grow the number of HopeBuilder monthly donors. It is through the support of individuals like these that we are able to continue our mission to build more homes for families in need.

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Thanks to the continued generosity of our supporters, we have been able to build an additional 275 homes for families across Asia, which has given them hope for a brighter future. I hope that you continue to support us in our target.

Our Partners

Foundation Partner

Habitat for Humanity Australia values the generosity of its corporate partners. Without this essential support we could not fulfil our mission of building homes, communities and hope for families in Australia and overseas.

Principal Partners

Major Partners

National Gift in Kind Partners

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Our year in figures Chandra Sharma – Finance Manager

Habitat for Humanity Australia is committed to financial management and transparency. The organisation adheres to the high standards of corporate governance set out in the ACFID Code of Conduct and Australian Accounting Standards. Despite the long-term effects of the Global Financial Crisis, donations increased by 7.1% to $ 3.9 million. This enabled Habitat for Humanity Australia to maintain its program expenditure and engage in strategic long-term projects. These long-term projects resulted in lower expenditure and revenue recognition this year. The benefits of this will be realised next year as these funds are used to build more homes and communities in our region.

Building finance capacity around the region A highlight this year has been visits by the finance team to Nepal, Bangladesh and Indonesia. These visits have built the capacity of the teams in these countries by providing training to program and finance staff, as well as helping the Habitat Australia team manage the projects in country. The visits also helped raise the capacity of the entire Habitat for Humanity network and provide greater assurance for our donors.

% 42 24 13 9 8 4

How the funds were raised

• Individuals • Corporates • Foreign grants • Trusts & foundations • Others • AusAID

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% 64 24 11 1

How the funds were spent

• Program expenditure • Fundraising cost • Administration cost • Finance cost

100 Total

Note: Expenditure ratios reflect proportion to total expenditure less non-cash items.

Annual Report 2011 | 23

Financial report - Independent audit report For the year ended 30 June 2011

Independent auditor's report to the members of Habitat for Humanity Australia We have audited the accompanying financial report, being a special purpose financial report of Habitat for Humanity Australia, which comprises the statement of financial position as at 30 June 2011, the income statement, statement of comprehensive income, statement of changes in equity, cash flow statement and table of cash movements for designated purposes for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Directors' responsibility for the financial report The directors of the company are responsible for the preparation of the financial report and have determined that the basis of preparation described in Note 2 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors' responsibility also includes such internal controls as the directors determine are necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error.

Auditor's responsibility Our responsibility is to express an opinion on the financial report based on our audit. We have conducted our audit in accordance with Australian Auditing Standards. Those 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 judgment, 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 controls relevant to the entity's preparation of the financial report that gives a true and fair view 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, 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.

Independence In conducting our audit we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditorâ&#x20AC;&#x2122;s Independence Declaration, a copy of which is included in the directorsâ&#x20AC;&#x2122; report.

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Independent audit report (continued)

Opinion In our opinion the financial report of Habitat for Humanity Australia is in accordance with the Corporations Act 2001, including: a.

giving a true and fair view of the company's financial position as at 30 June 2011 and of its performance for the year ended on that date; and

complying with Australian Accounting Standards to the extent described in Note 2, and the Corporations Regulations 2001.

Basis of accounting Without modifying our opinion, we draw attention to Note 2 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors' financial reporting responsibilities under the Corporations Act 2001. As a result, the financial report may not be suitable for another purpose.

Ernst & Young

Mark Conroy Partner Sydney 20 October 2011

Annual Report 2011 | 25

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

14-Dec-10

Peter Schultz

Director

Management Consultant

1-Jul-08

30-Nov-10

Graeme Sinclair

Director

Company Director

1-Jul-08

4-Nov-10

Shannon Hood

Director

Project Officer

11-Dec-09

Hugh Martin

Director

Company Director and Management Consultant

11-Dec-09

Paul Mulroney

Director

Magistrate

12-Feb-10

Zlatko Todorcevski

Company Secretary

Company Executive

12-Apr-10

25-Oct-10

Sue Baker-Finch

Director

Company Director

7-Jun-10

10-Jun-11

Robyn FitzRoy

Director

Company Director and Management Consultant

29-Nov-10

Doug Talbert

Director

Company Director and Management Consultant

29-Nov-10

Natalie Fuller

Director

Company Director and Management Consultant

14-Apr-11

Suellen Holmes

Director

Company Executive

14-Apr-11

Colin Goodall

Director

Company Director and Management Consultant

20-Jun-11

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 fourteen employees as at 30 June 2011 (twelve employees as at 30 June 2010)

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

26 | Habitat for Humanity Australia

Directors’ Report Continued Principal Activities

The principal activities of HFHA during the year 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 $ 3,507,973 (2010: $ 3,814,614) and expenses of $3,648,003(2010: $ 4,061,338) resulting in a deficit of $ 140,030 (2010: deficit $ 246,723).

Significant Changes in the State of Affairs There have been no significant changes in the state of affairs of HFHA during the period.

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 steadily both in terms of the number of families supported within Australia and the Asia-Pacific region and the 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*

Peter Schultz*

Graeme Sinclair

Shannon Hood

Hugh Martin

Paul Mulroney

Zlatko Todorcevski*

Sue Baker-Finch

Robyn FitzRoy

Doug Talbert

Natalie Fuller

Suellen Holmes

Colin Goodall

Name of Director

* Directors were granted leaves of absence by the board to attend to business commitment and overseas travel during the financial year.

Annual Report 2011 | 27

Directors’ Report Continued 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

Suellen Holmes (Chair)

Graeme Sinclair

Zlatko Todorcevski

Doug Talbert

Name of Director

Director’s Declaration The directors have received an Independence Declaration from the Auditors, which is included on page 29 of the financial report.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 2011 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

Suellen Holmes Chairperson, Finance and Audit Committee

Sydney, 20 October 2011

28 | Habitat for Humanity Australia

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

Auditorâ&#x20AC;&#x2122;s Independence Declaration to the Directors of Habitat for Humanity Australia In relation to our audit of the financial report of Habitat for Humanity Australia for the financial year ended 30 June 2011, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Ernst & Young

Mark Conroy Partner 20 October 2011

Annual Report 2011 | 29 Liability limited by a scheme approved under Professional Standards Legislation

Income Statement For the year ended 30 June 2011

Notes

2011

2010

REVENUE Donations and Gifts - Monetary

2,673,666

2,918,583

108,308

131,278

- AusAID

150,000

- Other overseas

494,498

682,891

- Non-monetary Bequests and Legacies Grants

Investment Income

3(a)

77,462

66,725

Other Income

3(b)

4,039

15,138

3,507,973

3,814,614

1,205,417

1,462,810

494,728

381,916

10,507

887,471

656,573

7,047

105,546

425,139

403,964

Revenue for Int'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 Fundraising Costs - Public - Government, multilateral and private Acountability and Administration Non-monetary Expenditure - Depreciation

1,432

17,841

- Exchange Loss

34,018

19,246

Finance Costs

19,392

16,326

3,085,151

3,064,222

474,571

478,548

2,023

220,338

166,952

86,258

131,278

562,852

997,116

TOTAL EXPENDITURE

3,648,003

4,061,338

EXCESS OF EXPENDITURE OVER REVENUE

(140,030)

(246,723)

Total International Aid and Development Programs Expenditure Expenditure for Int'l, Political or Religious Proselytisation Programs

3(c)

Domestic Programs Expenditure Program expenditure and support cost Non-monetary Expenditure - NPV Charge on loan to Affiliates & former Affiliates - Australian Affiliates Loans write off - Contributed services - Amortisation of Lease Incentive

Total Domestic Programs Expenditure

30 | Habitat for Humanity Australia

Statement of Comprehensive Income For the year ended 30 June 2011

2011

2010

REVENUE Excess of expenditure over revenue for the year

(140,030)

(246,723)

Other comprehensive income / (loss)

Other comprehensive income/(loss) for the year

(140,030)

(246,723)

Total comprehensive loss for the year

Annual Report 2011 | 31

Balance Sheet For the year ended 30 June 2011

Notes

2011

2010

ASSETS Current Assets Cash and cash equivalents

1,115,762

749,329

Trade and other receivables

179,403

342,759

Other financial assets - loans and receivables

64,149

58,508

1,359,314

1,150,596

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

265,258

279,353

Property, plant and equipment

1,532

2,964

266,790

282,317

1,626,104

1,432,913

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

111,447

59,063

Borrowings

Current tax liabilities

9,590

27,448

Lease Incentive Liability

21,128

Provisions

46,947

25,796

Deferred revenue

694,261

417,874

883,373

551,309

Other financial liabilities

13,283

12,126

Total Non Current Liabilities

13,283

12,126

TOTAL LIABILITIES

896,656

563,435

NET ASSETS

729,448

869,478

729,448

869,478

729,448

869,478

Total Current Liabilities Non Current Liabilities

EQUITY Retained Earnings

TOTAL EQUITY At the end of financial year Habitat for Humanity Australia had no balance for following items: Current Assets : Inventories and Assets Held for Sale Non-current Assets: Trade and other receivables, Investment Properties and Intangibles Current Liabilities: Other financial liabilities and Other Non-current liabilities: Provisions and Borrowings Equity: Reserves

32 | Habitat for Humanity Australia

Statement of Changes in Equity For the year ended 30 June 2011

Retained Earnings As at 30 June 2009

Retained earnings at the beginning of the year

1,116,201

Excess of expenditure over revenue for 2010

(246,723)

Other amounts transferred (to) or from reserves

As at 30 June 2010

869,478

Retained earnings at the beginning of the year

869,478

Excess of expenditure over revenue for 2011

(140,030)

Other amounts transferred (to) or from reserves

As at 30 June 2011

729,448

Note: There are no adjustments or changes due to items for example, adoption of new accounting standards and items in other comprehensive income. There are also no transfers to Reserves.

Table of Cash Movements for the Designated Purposes Cash Movements for the year ended 30 June 2011 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

492,411

1,313,491

1,205,417

600,485

Designated purposes - Domestic Program

147,410

470,464

474,571

143,303

Other purposes

109,508

2,106,750

1,844,284

371,974

Total

749,329

3,890,704

3,524,272

1,115,762

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

3,630,718

3,566,613

749,329

Other purposes Total

Annual Report 2011 | 33

Cash Flow Statement 2011

2010

3,761,947

3,567,006

(3,449,203)

(3,610,041)

33,489

15,898

(19,392)

(16,326)

326,841

(43,463)

39,592

154,614

Purchase of property, plant and equipment

Receipt from property, plant and equipment

39,592

154,614

Receipt of loans

Repayments of loans

(47,046)

Net cash flows from/(used in) financing activities

(47,046)

Net increase in cash and cash equivalents

366,433

64,105

Cash and cash equivalents at beginning of period

749,329

685,224

1,115,762

749,329

For the year ended 30 June 2011

Notes

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Finance Cost Net cash flows from/used in operating activities

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

Net cash flows from investing activities Cash flows from financing activities

Cash and cash equivalents at end of period

34 | 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 2011 was authorised for issue in accordance with a resolution of the Directors on 10 October 2011.

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 has 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 receives 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 2011 | 35

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 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.

(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.

(d) Program expenses Transfers to the overseas Partner Organisations (PO) are not recognised as expenses until financial reports are received and acquitted.

(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 converts 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 converts 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 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.

36 | 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 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 2011 | 37

Notes to the Financial Statements (continued) June 2011 $ 3

June 2010 $

REVENUE AND EXPENSES a. Finance income Notional Interest on Affiliate Loans

43,973

50,827

Bank Interest Received

33,489

15,898

Total finance income

77,462

66,725

Miscellaneous Income

4,039

15,138

Total other income

4,039

15,138

1,342

1,525

14,974

1,432

17,841

Cash at bank

1,115,262

748,829

Cash in hand

500

1,115,762

749,329

Trade receivables

169,543

299,482

Accrued Interest

4,034

1,484

Prepayments and Others

2,257

20,834

GST Receivables

3,569

20,959

179,403

342,759

64,149

58,508

64,149

58,508

265,258

279,353

265,258

279,353

b. Other income

c. Depreciation expense Depreciation of non-current assets Furniture and fittings Computers Computers-software Total depreciation expense

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.

38 | Habitat for Humanity Australia

Notes to the Financial Statements (continued) June 2011 $ 7

June 2010 $

PROPERTY, PLANT AND EQUIPMENT Computers 58,210

58,210

(58,210)

(58,120)

29,948

(29,948)

6,709

(5,177)

(3,835)

Net Carrying amount

1,532

2,874

Total Plant and Equipment

1,532

2,964

Trade and other creditors

64,895

36,443

Habitat programs

46,552

22,620

111,447

59,063

At cost Accumulated depreciation Net carrying amount Computer Software At cost Accumulated depreciation Net carrying amount Furniture At Cost Accumulated depreciation

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

46,947

25,796

694,261

417,874

694,261

417,874

Balance at the beginning of the year

869,478

1,116,201

Excess of revenue over expenditure

(140,030)

(246,723)

729,448

869,478

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 2011 | 39

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 2011 $

June 2010 $

(140,030)

(246,723)

1,432

17,841

34,018

19,246

Adjustments for non-cash income and expense items: Depreciation expense Amortisation of lease incentives Exchange loss Non monetary revenue

(108,308)

(131,278)

Non monetary expenditure

86,258

131,278

Imputed interest income on affiliate loans

(43,973)

(50,827)

Loan write offs

166,952

Increase in financial liability

(1,157)

2,023

220,339

163,357

(76,477)

3,292

3,100

NPV charge on loan to affiliates Working capital adjustments: (Increase)/decrease in trade and other receivables Increase/(decrease) in trade payables Increase/(decrease) in provisions

(9,986)

52,385

16,955

Increase/(decrease) in deferred revenue

276,387

(102,726)

Net cash provided from operating activities

326,841

(43,463)

Increase/(decrease) in other payables

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 2011 $ Within one year

June 2010 $

68,354

After one year but not more than five years

101,556

More than five years

68,354

169,910

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 to the number of members allowed under the HFHA Constitution. All the directors are members of the HFHA Constitution. 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.

40 | Habitat for Humanity Australia

Annual Report 2011 | 41

â&#x20AC;&#x153;Hand in hand, we can make a difference.â&#x20AC;?

42 | Habitat for Humanity Australia

Show your support Habitat for Humanity supporters come in all shapes and sizes, from all walks of life and from all over the world. You can get involved with Habitat for Humanity in a range of different ways – from raising funds to making donations; and of course getting your hands dirty actually volunteering to build a Habitat home locally or internationally. The choice is yours. What unites us is a belief in a world where everyone has a safe and decent place to live.

Make a Donation

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

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. Alternatively, contact your local Habitat for Humanity Australia State Affiliate office and find out how you can help. Volunteer your spare time to help out in our offices or in promoting our various programs.

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, helping to build homes for families in need.

Fundraise

There are lots of ways to raise funds and support our building program. Some popular ideas include: hosting a dinner party or trivia night, holding a raffle or auction, clearing out your trash and turning it into cash with a garage sale or asking your friends to sponsor you in an event and directing your funds to Habitat for Humanity Australia. Many companies like to support their employees fundraising efforts by matching the funds they raise, so ask your company if they would consider this.

Become a ‘HopeBuilder’

Include us in your Will

Our HopeBuilders sign up to make a regular monthly donation from their bank account or credit card. HopeBuilders are the backbone of Habitat for Humanity and provide ongoing support to our building program. HopeBuilders receive recognition in our annual honour booklet, as well as merchandise and regular updates.

Habitat for Humanity ‘Legacy Builders’ have included us in their Wills, knowing that the funds will help to create an enduring legacy of hope enabling some of the poorest families in the world build safe and decent homes.

Annual Report 2011 | 43

For their assistance producing the 2011 Annual Report, we would like to thank…

• Auditors - Ernst & Young • Design - Sensory Creative • Printer - Dobson’s Printing • Paper supplier - Spicers

• Photography - Belinda Mason Mikel Flamm & Louise Cutler • Report typeset in ‘Router’ courtesy of Jeremy Mickel, mickeldesign.com

Habitat for Humanity Australia PO Box 1048 North Sydney NSW 2059 FreeCall: 1800 88 55 99 www.habitat.org.au ABN 66 095 541 841