annual report 2009
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Building Homes, Building Community, Building Hope
contents 2 Who we are and what we do 3 2009 achievements 4 Chairman’s report 6 National board of directors 8 CEO’s report 9 Our partners 13 International programmes 16 Domestic programmes 18 Disaster response programmes 20 To the future 22 Financial report 40 How you can help
This document can also be viewed at www.habitat.org.au
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 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.
“Habitat for Humanity Australia recognises that housing is a catalyst for alleviating poverty.ÂA decent home opens the door to improved health, better performance in school,
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greater economic opportunities and increased community cohesion.�
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who we are and what we do A global housing crisis exists with more than 100 million people homeless and about 1.6 billion people living in sub-standard housing. In Australia, more than 100,000 people are without a home at any one time. There are also about 200,000 families living in caravan parks and more than 172,000 families waiting for public housing.
Who we are Habitat for Humanity Australia is a non-profit organisation operating as part of a global network in more than 90 countries. Habitat builds simple, decent and affordable homes in partnership with families in need. In fact, a new Habitat home is built somewhere in the world every 24 minutes. Building houses does much more than put a roof over someone’s head. With simple, decent and affordable housing families can: • Provide stability for their children • Grow pride and a sense of dignity • Improve health, safety and security • Increase education and job prospects
In 2009 Habitat’s Global Village and international programmes worked in: Ghana, India, Nepal, Mongolia, Myanmar, Thailand, Cambodia, Vietnam, Indonesia, Philippines, Australia, Papua New Guinea and Fiji and is planning work in Afghanistan.
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What we do In the last 30 years, we have built nearly 300,000 houses around the world, providing more than 1.5 million people with safe, decent and affordable shelter. Habitat provides a ‘hand up’ not a ‘hand out’ for those families who contribute their own labour, or ‘sweat equity’ to help build their house and those of other partner families. New houses are built using as much volunteer labour and donated materials as possible. The families pay a deposit and access an affordable housing loan. Their loan repayments then go into a revolving fund to assist more families. All families receiving help must be currently living in housing-related stress, be unable to borrow to buy or build a home and be willing to partner with Habitat. Habitat is committed to resource and energy-efficient building practices. Our construction techniques involve conserving natural resources and minimising the building carbon footprint, which also reduces longterm costs for Habitat homeowners.
2009 achievements
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Number of households Habitat has assisted internationally
Habitat for Humanity Australia is about more than just building houses… We actively respond to natural disasters by providing clean water, sanitation and temporary shelter. Habitat also assists families by providing training in financial literacy, health awareness and income generation.
International programmes In 2009, Habitat’s international programmes focused on the Asia-Pacific region through its partnerships and assisted 949 households with improved living conditions through the provision of core housing, house repairs/rehabilitation, access to water, sanitation and electricity supply. In addition, Habitat helped improve the health awareness of more than 2,000 women and children in Cambodia and saw 67 children enrolled in full-time education in Vietnam. One hundred and seven households received support for income generation opportunities and a further 383 households were trained in basic financial literacy in Cambodia.
2008
2009
343 households
949 households
Habitat has assisted more than 3,000 households in the Asia-Pacific region in the period 2003-2009 and has targeted a total of 5,000 households for assistance by 2013.
Domestic programmes Habitat has helped 83 families achieve the great Australian dream of home ownership to date. During 2009 an additional six homes were completed and a further 52 projects are in the pipeline.
2000 women and children have improved health awareness
67 children enrolled in full-time education
Habitat’s Bidwill Blitz programme aims to give nine struggling families the opportunity to own their own home. The second home was completed in November 2008, with the assistance of sponsors and volunteers on the ground. A further two homes will be built in just 12 days during 2010 – an amazing achievement!
107 households helped with income generation opportunities
Disaster response programmes
383 households trained in
In 2009 Habitat responded to the significant challenges of the Victorian bushfires and cyclone Nargis in Myanmar, which hit in May 2008. Habitat delivered services and support to help rebuild the lives of communities that were devastated by these natural disasters.
basic financial literacy
Here in Australia, Habitat has assisted 83 families achieve the great Australian dream of home ownership. During 2009 an additional six homes were built.
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chairman’s report In a challenging year with the global financial crisis affecting all its stakeholders, Habitat for Humanity Australia progressed its mission and capabilities in important ways. Our strategic focus was tightened, international development activities increased, a new Chief Executive Officer was welcomed, new offices were leased and most importantly, more families were served.
We are demonstrably active with Habitat International and key relief agencies in rebuilding communities after disasters at home and in the wider region. Targeted fund raising will no doubt grow significantly in that regard as occasion demands.
Strategy review
On a local basis, Habitat Victoria provided affected bushfire communities with ‘Tool Libraries’ – container loads of practical items such as hammers, saws, and shovels – to assist in rebuilding their lives.
Mindful of the ever-increasing affordable housing needs in all states, our strategic focus needs to be vital and relevant. A major component of the Federal Government’s economic stimulus package will be invested to increase the supply of affordable rental accommodation and improve public housing. In parallel, our community-based, self-help model is an answer to the substantial deficit of affordable home ownership and community building opportunities.
Our international programme expanded significantly this year and is clearly becoming a centre of excellence within Habitat Asia-Pacific. We collaborated with Habitat International in a number of countries including Cambodia, Vietnam and the Philippines. Collectively, Asia-Pacific activities were truly inspiring – 27,635 families were housed and/or had major refurbishments, and the multi-year tsunami rebuilding efforts will soon have completed 25,000 homes.
Accordingly, after careful review, we have decided that we can better achieve our mission of serving more Australian families by being more flexible in our operating policies and model. Habitat has traditionally provided 20-year interest-free mortgages to carefully chosen new home owners who invested ‘sweat equity’ and a desire to improve their families. This very special, fulfilling model will of course continue with our state affiliates and their chapters around Australia.
Our Global Village programmes saw 30 Australian teams build homes in Ghana, India, Nepal, Thailand, Cambodia, Vietnam, Indonesia, the Philippines and Fiji in 2009. Significant growth is expected in the coming years with partnerships starting at the high school level onwards.
But it is also clear that we must substantially increase the scale of our home building in the face of obvious, growing need. We will trial new home acquisition approaches over the next 12-18 months in larger projects than previously undertaken. Our strategic imperative is to test less capital-intensive lower-income home owner schemes such as ‘rent to buy’. So our goals will be to significantly increase traditional building at the community level as our brand strengthens and funding resources expand, whilst also increasing the number of new homes we build per year through joint ventures with suitable parties. Habitat South Australia is first off the mark with a pilot lending scheme supported by the State Government of South Australia.
Operations There are many positives to report from the 2009 financial year. Real growth is underway in Australia with 52 projects in the pipeline. Six families received keys to new homes in recent months and each occasion was an enormously rewarding experience for the volunteers and sponsors who made it possible.
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This year sees the famous Jimmy & Rosalynn Carter Work Project come to our region. A number of Australians will participate with thousands of others from around the globe when they converge on five countries on the Mekong Delta to help the region’s poor with decent housing. We have had a major focus on our AusAID accreditation and have high hopes of attaining this within the next 12 months. If successful, our resources will be leveraged considerably.
Our partners We have been so fortunate with dedicated sponsors in all our activities, the logos we display in this report give only a suggestion of the contribution they make. As examples, QBE LMI is a cornerstone sponsor and a true advocate for our work through vigorous networking in home lending, Orica is a dedicated sponsor of projects in Indonesia as part of its community responsibilities, Blake Dawson has simply been fantastic in its support, Booz Allen has provided significant help with strategic planning – and the list goes on. The work of Habitat for Humanity Australia would not be possible without the kindness and generosity of our partners. Thank you!
= hope Management and staff Our leadership team and staff worked hard in the challenging economic conditions of the last 18 months, which affected virtually all businesses and non-profit organisations. Habitat’s planned leadership transition was nevertheless able to take effect smoothly which is a credit to all involved. Specifically, George MacDonald returned to the private sector in January 2009 after completing the three and half years as CEO he had promised. George was a truly dedicated, determined, entrepreneurial leader who has a 20-year history with Habitat. We thank him most sincerely and wish him the very best in the next chapter of his career. Similarly, Mark White, a 10-year veteran of Habitat International, finished his two-year secondment with Habitat Australia where he made a most valuable contribution to finance and administration. We were pleased to welcome Jo Brennan as our new CEO at the beginning of financial year 2010. She brings a wealth of experience, including executive roles with Macquarie Group and Santos and a background in management consulting and teaching. Her project management skills are a strong fit with our strategic growth objectives.
“Collectively, Asia-Pacific activities overall were truly inspiring – 27,635 families were housed and/or had major refurbishments and the multi-year tsunami rebuilding efforts will soon have completed 25,000 homes.”
We also settled into new offices at 20 Berry Street, North Sydney in April 2009 which will satisfy our needs for some time. The national board also underwent changes, Sue Owens, from Melbourne, Victoria and David Curtain from Gympie, Queensland, deciding to concentrate on chairing their respective state affiliates. They both made a sustained and vital contribution to Habitat’s national debate and will be missed. Gillian Burrows resigned due to work commitments and her professional competencies will be missed; we thank her, Sue and David most sincerely. The board willingly and cheerfully obliged in a year that called for extra effort. They were a pleasure to work with and I thank Chris Franks, Peter Schulze, Graeme Sinclair, James Allardice and Kerry Bartlett on your behalf, and mine. Building on the dedicated work of so many over the years, Habitat is well positioned to fulfill its part of the global mission: ‘To mobilise volunteers and community partners in building affordable housing and promoting home ownership as a means of breaking the cycle of poverty.’ As a Christian faith organisation working with and serving all, we look forward confidently. Sincerely
David W Benn Chairman
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national board of directors Habitat for Humanity Australia is governed by a board of voluntary directors who are elected from and by the 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 six appointed directors.
David W Benn, Chairman, NSW Joined the board in November, 2003 Mr Benn 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 is currently Chairman of Peoplebank Ltd, an ASX listed IT contracting firm. Other recent 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.
Peter R Schulze, Treasurer, SA Joined the board in May, 2006 Mr Schulze has held leadership roles in the areas of HR, workers compensation, entrepreneurial ventures, international community development with major SA Government instrumentalities, national corporates and private organisations. Over the past four years he worked as the Partnerships and Programmes Director for Mission International, establishing operations across the AsiaPacific. He now consults independently in this field in Australia, as well as being active in a number of community organisations.
James C Allardice, NSW Joined the board in November, 2005 Mr Allardice spent more than 30 years in the insurance, finance, hi-tech clean and property development sectors and subsequently focused on the not-for-profit sector. His involvement has included full-time roles with Habitat for Humanity Asia-Pacific, and he has served on Habitat for Humanity Australia’s board from November 2001 to March 2005. He is currently the executive director of Habitat for Humanity NSW. He previously worked for four years with Opportunity International, Australia’s micro-enterprise programme.
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“Our vision… A world where everyone has a safe and decent place to live.”
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Hon. Kerry J Bartlett, NSW Joined the board in May, 2008 Mr Bartlett recently 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. Previously 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.
Christine Franks, VIC Joined the board in May, 2008 Ms Franks has over thirty years experience as an executive and a nonexecutive director of corporate and not-for-profit organisations. Most recently she was with the Machabi Sports Foundation Victoria, first as Development Director and then interim CEO. She runs her own consulting company, is a non-executive director of CUA (Credit Union Australia) and a member of the International Advisory Committee for CUFA (Credit Union Foundation Australia). A volunteer for over 25 years in a range of charities including Oxfam and Save the Children, she has also chaired the ACFID (Australian Council for International Development) Code of Conduct Committee, developing and extending the Code to the point it is now acknowledged internationally as the benchmark for self-regulatory codes in the overseas aid and development sector.
Graeme W Sinclair, VIC Joined the board in May, 2008 Mr Sinclair is a Chartered Accountant with more than 35 years experience in investment and wealth management services. He retired in July 2009 as the CEO of The Myer Family Company P/L after 13 years in the role. He is a director of Peet Ltd and Mirrabooka Investments Ltd, listed property development and funds management and investment companies respectively, a trustee of The William Buckland Foundation and a member of the Habitat for Humanity Victorian board. He has been involved in various community activities and is a director of several private companies.
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ceo’s report
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I feel very privileged to be joining Habitat for Humanity Australia at such an exciting time in its history. Habitat delivers tangible results and lasting change, building hope by building homes and communities. This year we have been able to help many families both here and overseas with the support of our sponsors, volunteers and partner families. Our projects have delivered water and sanitation, literacy programmes, livelihood solutions and of course, simple, decent and affordable homes to families. We have grown both here in Australia and across the Asia-Pacific in 2009. We have a genuine and important mission, a strong and dedicated team and great plans to increase the number of families and communities we serve in 2010. Despite the challenges brought about by the global financial crisis, I am pleased to report that revenue has increased by 12% and total assets are up 17%. The domestic programme has grown and our work across the Asia-Pacific has been strengthened. Most importantly, Habitat has maintained its programmes and assisted more than 3,000 families across Australia and our region. Habitat’s quick response to the Victorian bushfires demonstrated the enormous capability of our volunteer network and we are still working in those communities today. The Bidwill Blitz saw our NSW Affiliate build a home in 12 days, an incredible achievement. Elsewhere in Australia six families’ realised their Habitat homeownership dream. Internationally, the strong links between our projects and the Global Village programme have seen some truly memorable and life-changing moments. I know from talking to our volunteers that seeing a family’s joy in having the stability and safety of a home is the motivation for them to keep contributing. It’s important work and there is much to be done. 2010 promises to be an exciting year. We have projects underway that will help 52 families here in Australia, we are seeking accreditation with AusAID, the Australian Agency for International Development and we are planning to work in Afghanistan for the first time. Our Global Village programme will see more volunteers ‘travel and change the world’ and we will continue to develop our fundraising options to build our ongoing sustainability. This comes at the right time because the need has never been greater. We can only do this important work because of the generous people who support our vision. Our foundation sponsors, QBE LMI and Orica, are special supporters of our programmes and make a real difference in this world. Thank you for your warm and personal welcome. I look forward to meeting more of our partners and working alongside you as we continue to build communities through partnerships in the coming year.
Jo Brennan CEO
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“We have a strong and dedicated team and great plans to increase the number of families we serve in 2010, as we continue to build communities through partnerships.”
our partners
Foundation Sponsor
Habitat for Humanity Australia’s capacity to continue to provide safe, decent and affordable housing to those in need is made possible by the generosity of our partners and supporters. We say a heartfelt thank you for your support in 2009 – families’ lives are changed because of you. We look forward to strengthening our relationships, as we continue to expand our programme activities in the coming years.
QBE LMI and Habitat by Ian Graham, CEO, QBE LMI Principal Programme Sponsor
At QBE LMI we genuinely care about giving back to our community. We actively work to be a responsible corporate member of society. With this in mind, our relationship with Habitat for Humanity Australia complements the goal at the heart of our own organisation, making home ownership possible for more people. At QBE LMI, we not only provide a monetary commitment to Habitat, we also encourage our people to lend a hand and help build houses. To date, we have provided over 320 volunteer build days, making Habitat for Humanity an entwined part of our organisational culture.
“QBE LMI’s primary focus as a foundation sponsor of Habitat for Humanity is to provide opportunities for families who have gone through hardship. Habitat offers us a unique opportunity to contribute to the community with a hands-on project and our people are proud to help families in need achieve their dream of homeownership”
Major Sponsors
Ian Graham CEO, QBE LMI
Bonnie Fenton from QBE LMI at the Global Village Angkor Chum worksite, Cambodia
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International Programme Supporters
Children playing on the island of Manado in North Sulawesi, Indonesia
Habitat and Orica – working together to create sustainable change Orica’s support of Habitat for Humanity Australia’s international programmes since 2007 has resulted in several positive initiatives across the Asia-Pacific region. Habitat has been able to expand and improve the operations of its international programme department, enabling the investment of additional resources to develop the capacity of partner organisations in Indonesia, Vietnam and Cambodia. With the ongoing support of Orica, Habitat has identified an Indonesian project on the island of Manado in North Sulawesi. This project will assist internally displaced refugees (IDPs) who fled surrounding islands in 1999 and 2000 due to ethnic violence. Over a two-year period, Habitat will work with an IDP camp of up to 400 people to create, safe, secure and healthy living environments, establish safe water and sanitation facilities, whilst also providing support for livelihood and income generation initiatives.
“Habitat for Humanity Australia in partnership with Orica will work to create safe, secure and healthy living environments for up to 400 internally displaced refugees in Indonesia.”
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Since 2004, The Charitable Foundation’s generous support of Habitat’s housing and community development programme in Cambodia has resulted in improved living conditions for 962 families. With an average family size of six (two adults, four children) approximately 5,772 people have benefited from the programme.
Gifts in Kind Peder Nygaard Pedersen from The Charitable Foundation visiting a Habitat Programme in Cambodia
The Charitable Foundation visit Habitat’s programme in Phnom Penh and Siem Reap province During March 2009, Peder Nygaard Pedersen, Director of Operations, The Charitable Foundation, and Tania Flood, International Programme Manager, Habitat for Humanity Australia, visited project sites in Phnom Penh and rural villages in Angkor Chum District, Siem Reap province. The team met with families to learn first hand how Habitat’s programme is impacting their lives. In Sen Sok, where Habitat has recently introduced loans for electricity and water connections, one home partner said that they are making substantial savings on the cost of electricity now that they have been able to connect to the cheaper, State-provided service. The extra money is being spent on education for the children and to improve the family’s daily diet. Over time, the family would also like to contribute to their savings in order to improve their house. In addition to housing improvements, the housing and community development programme has helped families with gaining access to safe drinking water through the construction of wells and rainwater tanks. Improved sanitary conditions have also been provided through the construction of home and communal toilets. Training has improved health awareness for community members and school children. Livelihood opportunities have also been enhanced through training in basic financial management and skills development, including construction and agricultural techniques.
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Communities for Communities volunteers at the Rainbow Village site in Rach Gia, Vietnam
Communities for Communities immerse themselves in the Rainbow Village
“Trips like this really open our eyes to what life is like for people here. It is wonderful to see how happy the people are, in spite of what we would regard as extraordinarily difficult circumstances. And throughout our time here our team, which ranged in age from 15-65 years, bonded really well, with all the boundaries that often exist between people fading away as we worked together on this important project.” Lance Brooks Communities for Communities President
Twenty three volunteers from Communities for Communities, Habitat for Humanity Australia’s key partner in the Rainbow Village Project which is being implemented in Rach Gia Vietnam, signed up to be part of an immersion trip which took place during April 2009. This project is being implemented in conjunction with Habitat for Humanity Vietnam and the Catalyst Foundation. It will provide safe housing, education and child protection for around 90 families who have been living in perilous circumstances on a rubbish tip. The group of volunteers stayed in Rach Gia and undertook an orientation of the work site on their first day. Each day after breakfast the team would travel to Rainbow Village to begin work. There were many jobs to be done including bricklaying, assembling the steel framework, wheel barrowing sand, rocks or cement and helping with setting the floor. Members of the group would volunteer for particular tasks and usually swap around as the week went on. “It is wonderful to see the interest that people from so far away have taken in our plight,” said Thoung, a Community Development Manager at the project. By the end of the group’s stay, six houses had been constructed up to the roof level. The group made many new friends and promised to come back to help again in the future. “Trips like this really open our eyes to what life is like for people here,” said Communities for Communities President Lance Brooks. “It is wonderful to see how happy the people are, even in spite of what we would regard as extraordinarily difficult circumstances. Throughout our time here our team, which ranged in age from 15-65 years, bonded really well, with all the boundaries that often exist between people fading away as we worked together on this important project.” To date, 24 new homes and a vocational training centre have been constructed at the new Rainbow Village site. A further trip is planned for January 2010.
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international programmes Habitat for Humanity Australia, through its overseas aid fund, supports projects that combine the provision of housing solutions with poverty alleviation measures including health and hygiene education, water and sanitation, livelihood development and civil society development. The core of Habitat’s strategic focus consists of projects in the Mekong, Indonesia and the Philippines. However, our Global Village volunteers go all over the Asia-Pacific region, from Fiji to India. Many international projects during 2009 were conducted in partnership with key programme sponsors and have been highlighted previously.
Building healthy and secure communities in Cambodia During June 2009, Habitat for Humanity Cambodia built a test house using ‘soil bricks’. Upon completion the Governor of Kandal Province granted permission for the construction of the first 21 soil brick homes in Cambodia.
In May 2009, Habitat appealed to supporters to assist a community of families living at Stoeng Meanchey Municipal dump site in Phnom Penh, Cambodia. In the first instance, 21 families will be relocated to land acquired in Srok Por Village in Kandal Province. Appropriate housing solutions, including safe water supply and sanitation, will be provided using Habitat’s ‘save and build’ model in addition to skills training for income generation opportunities. In June 2009, Habitat for Humanity Cambodia reported that, after a consultative process involving a test house build, agreement was reached on a house design using soil bricks produced on site by the families themselves. The Governor of Kandal Province also granted permission for construction of the first 21 homes. The home partners and community leaders are working with Habitat’s construction team to produce bricks and lay the house foundations.
The whole village was involved in the dedication ceremony for the test house in Cambodia
Families making soil bricks for the test house in Cambodia
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The Global Village programme has grown from two teams in 2003, to 30 teams representing 389 individuals. In 2009 teams travelled to Ghana, India, Nepal, Thailand, Vietnam, Cambodia, Indonesia, the Philippines and Fiji.
Global Village Global Village trips offer participants a unique opportunity to become active partners with families of another culture. Team members work alongside the host community, building simple, decent and affordable housing worldwide and return home to raise awareness of the burden of poverty. As partners, team members help build a true global village of homes, community and hope. Thanks to the hard work and practical help of Habitat’s volunteers, the Global Village programme had another successful year, reflected in the growing team numbers. We expect this increase will continue as the Global Village programme expands through the passion and experience of past team members, who tell their stories about the contribution they were able to make and the humbling experience that has helped shape their lives. During 2009 Habitat’s Global Village department sent 30 teams comprising of 389 volunteers to Ghana, India, Nepal, Thailand, Vietnam, Cambodia, Indonesia, the Philippines and Fiji. Teams this year were made up of individuals, social and community groups, schools and youth groups. Global Village’s future is exciting. With increased interest from the Australian community in the unique opportunities the programme offers, and greater overall awareness of the challenges of poverty in our neighbouring countries, Habitat is committed to growing the programme. Twenty eight teams are already planned for 2010 to build homes in partnership with families in need.
2003
2008
2009
2 teams
23 teams
30 teams
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= hope Building communities through partnership Scotch College – Fiji, December 2008 by Stephen Ritchie, team leader Hammering, sawing, wiping the sweat from our brows in the tropical heat – this was the reality for students and staff during a December 2008 trip to Fiji under the auspices of Habitat for Humanity Australia’s Global Village programme. A team of 14 flew to Fiji to construct a house for a family living in Dravuni village, an isolated settlement of 60 inhabitants on the west coast of Viti Levu. The group, all from Melbourne, comprised two teachers and 10 students from Scotch College, one from Xavier College and one from Presbyterian Ladies College.
“Students learned to handle tools with some skill and the enthusiasm generated between them and the local helpers was infectious. For all our group members, the hospitality and communal intimacy that we shared as guests of an entire village was an extremely humbling and revealing experience.” Stephen Ritchie Global Village team leader
Apart from paying their own way on the trip, each student raised additional funds in excess of $1200 as a donation towards the building materials used in the project. In many countries, this relatively modest amount is sufficient to build an adequate threeroom dwelling for a family. Upon arrival, it was clear we were not only guests of the family with whom we were building, but that we were guests of the entire village. The accommodation of our group of 14 meant that we were billeted across three local households with whom we fast became friends. Work began early each day at 5:15am and continued until 10am. We resumed between 3pm and 6pm. This break was a concession to our unacclimatised selves as we tried to survive the midday humidity and the fact that each afternoon a tropical downpour dumped about 100mm of rain onto the muddy worksite. Students learned to handle tools with some skill and the enthusiasm generated between them and the local helpers was infectious as we reached the final stages of our stay. By the end, we had almost completed the construction of the three-room dwelling, but time and the weather took its toll, leaving the roof to be constructed by the able villagers. For all our group members, the hospitality and communal intimacy that we shared as guests of an entire village was an extremely humbling and revealing experience.
The Scotch College Global Village team at work in Fiji
2009 saw almost 400 volunteers participate in the Global Village programme. Habitat recognises the contribution of your efforts, dedication and passion, you have made a huge impact on the lives of so many families around the world… “Thank you.”
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domestic programmes Habitat for Humanity Australia builds simple, decent and affordable homes. Simple – The homes are large enough for a family’s needs, but small enough to keep construction and maintenance costs to a minimum. Decent – Available quality building materials are selected and received as gifts in kind from our partners. Affordable – Volunteers and partner families help build the homes and an affordable home loan is provided to the families.
Bidwill Blitz
Day 1: Volunteers assist the trades team leaders who erect the framework
From 17 - 29 November 2008, Habitat along with its sponsors and volunteers, built a house in just 12 days. The final day revealed a dream that the Stuart family thought they’d never see when they were handed the keys to their own home. This is the second house completed in Habitat’s Bidwill project which will give nine struggling families the opportunity to own their home.
QBE LMI join in the Blitz Over 50 QBE LMI team members participated in the Bidwill Blitz build undertaking a variety of different tasks, including helping to construct the house frame, painting and gardening.
November 2009 Blitz
Day 1: A QBE LMI volunteer at work – ANZ, Challenger and Habitat staff also joined the build
The next two homes will be built in November 2009. The major sponsors are QBE LMI, Housing NSW, Landcom and Eventide Homes (NSW). QBE LMI will again join in the 2009 Blitz with 50 team members to help two families achieve their dream of home ownership.
The Stuart family help build their new house
Day 2: Mr Hooker bear visits LJ Hooker staff volunteers on site
“I’m overjoyed to provide my family with the security and stability of a home to call our own.” Terese Stuart Habitat homeowner, Bidwill, NSW Day 4: The house is well under way
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Bidwill Blitz photos courtesy of Diana Graham Imagery
“The day was fun and rewarding. Meeting the Bidwill Blitz family and working alongside them made the experience real and gratifying.” Nick Vladaslavic QBE LMI team member
= hope Realising the great Australian dream Abdul Hakim Haidari, his wife Homaira, and children Sima Gul, Naseem, Mah Gul and Ali Akbar became homeowners in partnership with Habitat for Humanity South Australia. Abdul fled Afghanistan six years ago and travelled to Australia on a boat. He spent time in a detention centre before being granted a permanent visa. For five years he worked in manual labour to save enough money to support his family and finally bring them to Australia. When Scott Langford, SA executive director advised Mr Haidari that he was a successful applicant to partner with Habitat, Abdul read the letter twice before telling Scott that he was even happier with this news than when he received a residency visa after being in an immigration detention centre for several months. This made it clear how much a home meant to Abdul and his family.
Day 9: The Balmain Tigers NRL team visit the site to lend a hand
Abdul, a former tiler, and his family worked hard contributing their sweat equity hours over 18 months before moving in to their dream home. This dream was made possible by the support of Habitat’s volunteers and donors. Now Abdul and his family are proud to call Australia home in every sense of the word.
Day 11: With the house nearly complete volunteers tackle landscaping and fencing
Abdul and family at the dedication ceremony for their new home
Day 12 – Dedication: NSW Housing Minister David Borger attends the ceremony
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disaster response programmes Habitat for Humanity Australia has met the challenge of natural disasters worldwide and helped rebuild homes and hope for affected families in the wake of Hurricane Katrina, the Indian Ocean Tsunami, the China Earthquake and the Myanmar Cyclone.
Victorian bushfires During February 2009, Habitat was quick to mobilise people on the ground and help the communities devastated by the Victorian bushfires by partnering with authorities and families. Habitat will continue to work with these communities during 2010. Tool libraries
Hand-over of the Marysville Tool library to the local Lions Club
Habitat was inspirational in its approach to offer assistance at the heart of the communities affected by the bushfires through its Community Tool Libraries. The libraries were placed in some of the most badly affected areas, allowing local residents and volunteers to borrow a wide range of tools required to start the process of rebuilding their lives. To date 400 residents have registered as members of the Tool Libraries. ‘Brush with Kindness’ ‘Brush with Kindness’ was one of the first Habitat programmes launched in Victoria to help communities devastated by the Victorian bushfires. The programme pulled together teams of volunteers to undertake minor works such as fence and shed repair, painting, clearing of debris and fallen trees. Four homes at Point Nepean were renovated by Habitat volunteers who collaborated with other community groups to bring the homes back to a liveable condition. The homes were used by families to enjoy some respite from the fire stricken region.
Volunteers assist with the ‘Brush with Kindness’ programme after the Victorian bushfires
The Flowerdale Tool library – one of five Tool Libraries delivered to the fire affected areas
“I lost my tools in the fire and this is a great concept that is so practical and helpful.” Marysville resident
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= hope New houses in Ka Zaung Seik, Myanmar with clay water pots outside
Myanmar housing reconstruction and rehabilitation Thanks to the support from our partners Baptist World Aid Australia (BWAA) and International Children’s Care Australia (ICCA), Habitat is helping 102 families affected by Cyclone Nargis to rebuild their lives in three villages in Labutta township in the Ayeyarwady Delta.
“I was astonished again by how vulnerable families are to the incredible storms and winds of the monsoon season and how life-changing (and potentially life-saving) these stronger houses are. There are so many new babies and little ones, who are vulnerable and the strong homes are so desperately needed to protect these children. The need is so vast though and the international community response so minimal – every house from Habitat/BWAA/ICCA can literally mean life or death for a family. Thank you for going in to bat for these families!” Ms Kathleen Rutledge Former Asia Area Director for World Concern Programmes following a repeat visit to Myanmar
In May 2009, new houses were built with rainwater harvesting systems and sanitary latrines and designed to withstand storm winds and flooding. With the help of World Concern, Habitat’s key implementation partner, the communities themselves identify and agree upon appropriate resettlement sites for reconstruction and the most vulnerable families for assistance including widows, landless families and fishermen. Training on construction techniques is provided to community members using a peer-to-peer training model. Good planning to ensure materials are supplied before the onset of the monsoon has resulted in all 102 houses being completed ahead of schedule.
Clay water pots have been distributed for rainwater harvesting – all pots have lids to ward off mosquitoes
annual report 2009 19
to the future Habitat for Humanity Australia will continue to build communities through partnerships and amplify our vision within Australia and overseas.
International programmes In 2010, Habitat will continue to provide emergency relief to families in countries impacted by natural disasters in the Asia-Pacific region, through the supply of clean water, sanitation and temporary housing.
In 2010 Habitat plans to almost double its efforts internationally by assisting 1,875 households
Habitat aims to assist 1,875 households in the Asia-Pacific region under its regular programmes with improved living conditions. A further 267 children will benefit from increased access to schooling in Afghanistan and Vietnam. Habitat will continue to assist families to improve their economic wellbeing by offering financial literacy training and creating income generating opportunities during 2010.
Domestic programmes In 2010 Habitat will continue the ‘Brush with Kindness’ and Tool Library programmes assisting the communities devastated by the Victorian bushfires. There are a total of 52 projects in the pipeline, including building of two homes in just 12 days during November 2009.
Domestically, Habitat has 52 projects in the pipeline for 2010
2008
2009
2010
343 households
949 households
1,875 households
83 homes built to date 52 projects planned
20 annual report 2009
To find out more about Habitat’s work visit www.habitat.org.au or phone 1800 88 55 99
= hope A brighter future for Afghanistan’s children In 2010, Habitat for Humanity Australia, in partnership with Habitat for Humanity Afghanistan, will begin a project in Turabi village, located in the Balkh Province of Northern Afghanistan. Generous support for this project has been received from Wesley College and their Wall Street Theatre production. Habitat has been working in close partnership with the Turabi community for some time now, to create access to safe and healthy houses and improved living conditions. One of the community’s primary concerns was the state of their local school, attended by 1,700 students – 1,100 of who attend classes in tents. The students are required to attend school in shifts as there is not sufficient space for all the students at one time. The school has basic water and sanitation facilities but there is no access to piped water and the sanitation system requires emptying regularly, exposing the children to raw sewerage every two weeks. The Government of Afghanistan is unable to provide additional support to the Turabi Village School. Over a two-year period, this project will build five additional classrooms for the children, to reduce the strain on classroom resources and encourage a more productive learning environment. A safe water and sanitation system will be constructed, providing clean, piped water and toilet blocks with proper sanitation systems. Habitat looks forward to developing this partnership in Afghanistan and working with the Turabi community to help create a brighter future for all. Children at the current Turabi village school Habitat is planning to improve
Asia-Pacific disasters Habitat for Humanity Australia is actively responding to the Asia-Pacific natural disasters that hit in October 2009 through a range of disaster response initiatives, including the distribution of food, safe water and emergency shelter kits and the reconstruction of safe, permanent houses for families. Philippines In the Philippines Habitat will assist as many people as possible by providing:
Thank you to all our supporters and donors, in particular those who responded to the ‘Asia Pacific Natural Disaster Appeal’ – your donation will make a huge impact on the lives of those who have lost everything.
Distribution of safe drinking water – Provision will be made for safe drinking water. Food for work – Food kits will be distributed to 4,000 beneficiaries. Temporary shelter kits – Temporary shelter kits will be distributed to 2,000 beneficiaries benefiting 400 families. Indonesia Habitat for Humanity Australia is working closely with Habitat for Humanity Indonesia to identify and prioritise reconstruction activities in the wake of the October 2009 earthquake in Sumatra. Photo: Habitat for Humanity/Chris Mattle
annual report 2009 21
financial accountability
22 annual report 2009
independent audit report
independent audit report continued
annual report 2009 23
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 Position
Experience/professional background
Date of appointment
Date of retirement/ resignation
David Benn
Chairman
Company Director
28-Aug-03
James Allardice
Director
Company Director
30-Nov-05
Gillian Burrows
Director
Managing Director
31-Aug-06
1-Jul-09
David Curtain
Director
Sales Executive
6-Dec-04
16-Dec-08
Christine Franks
Director
Development Consultant
31-May-08
Kerry Bartlett
Company Secretary
Member of Parliament
31-May-08
Peter Schulze
Director
Director
31-May-08
Sue Owen
Director
Retired Nursing Administrator
30-Nov-05
Graeme Sinclair
Director
Company Director
31-May-08
16-Dec-08
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 30th June 2009. Corporate address: Suite 2, Level 9, 20 Berry Street 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 $3,520,415 (2008: A$3,141,745) and expenses of $2,998,517 (2008: A$2,984,076) resulting in a surplus of $521,898 (2008: A$157,669).
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 the HFHA’s operations or results of those operations or the HFHA’s state of affairs.
24 annual report 2009
directors’ report (continued) 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 not entered into an insurance contract to indemnify directors for any breach of the Trade Practices Act or discrimination laws for which they could be held personally liable.
Directors’ meetings Name of Director
Number of meetings held while in office
Number of meetings attended
David Benn (Chairman)
4
4
James Allardice
4
4
Gillian Burrows
4
1
David Curtain
3
2
Christine Franks
4
3
Kerry Bartlett
4
3
Peter Schulze
4
4
Sue Owen
3
1
Graeme Sinclair
4
3
Committee membership Directors acting on the committees of the Board and the meetings attended are as follows: Finance and Audit Committee Name of Director
Number of meetings held while in office
Number of meetings attended
David Benn
2
2
Peter Schulze
2
2
Auditor’s independence declaration The directors have received an Independence Declaration from the Auditors, which is included on page 27 of the financial report.
annual report 2009 25
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 30th June 2009 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. On behalf of the Board
David W Benn Chairman Sydney, 27 October 2009
26 annual report 2009
auditor’s independence declaration
annual report 2009 27
income statement for the year ended 30 June 2009 Notes
2009 $
2008 $
Revenue Donations and Gifts Monetary
2,490,438
2,065,089
Non-monetary
130,631
232,875
Bequests and Legacies
2,373
–
Overseas Grants
765,533
711,906
Finance Income
3(a)
99,146
55,899
Other Income
3(b)
32,294
75,976
Revenue for Int’l, Political and Religious Programmes
–
–
3,520,415
3,141,745
Cost of Sales
–
–
3,520,415
3,141,745
Gross Revenue
Expenditure Overseas Projects – Funds to international programmes
752,045
547,192
– Programme support costs
335,105
281,828
28,451
9,714
Community education
Fund raising Costs – public
632,511
491,845
– government, multilateral and private
213,241
264,229
Accountability and Administration
499,827
566,080
Non-monetary Expenditure – Contributed services
96,135
232,875
– Amortisation of Lease Incentive
30,021
4,940
– Depreciation
3(c)
18,382
3,604
Expenditure on Int’l, Political or Religious Proselytisation Programmes
–
–
Exchange Loss
11,839
–
NPV Charge on loan to Affiliates & former Affiliates
127,904
136,647
Domestic Programmes Expenditure
228,766
419,477
Finance Costs
24,290
25,645
Total Expenditure
2,998,517
2,984,076
Excess of Revenue Over Expenditure
521,898
157,669
28 annual report 2009
balance sheet as at 30 June 2009 Notes
2009 $
2008 $
Assets Current Assets Cash and cash equivalents
4
685,224
629,151
Trade and other receivables
5
284,631
150,414
Inventories
–
–
Assets held for sale
–
–
6
118,929
96,265
Total Current Assets
1,088,784
875,830
Financial assets - loans and receivables
Non-Current Assets Trade and other receivables
–
–
Financial assets - loans and receivables
6
708,594
657,054
Property, plant and equipment
7
20,805
7,648
Investment property
–
–
Intangibles (Lease Incentive Asset)
–
8,893
Other non-current assets
–
–
Total Non-Current Assets
729,399
673,595
Total Assets
1,818,183
1,549,425
Liabilities Current Liabilities Trade and other payables
8
91,745
99,920
Borrowings
9
47,046
167,848
Current tax liabilities (Group taxes payable)
10,494
8,823
Lease Incentive Liability
21,128
–
Provisions
–
–
10
520,600
678,531
Total Current Liabilities
691,013
955,122
Borrowings
–
–
Financial liabilities
10,969
–
Provisions
–
–
Total Non Current Liabilities
10,969
–
Total Liabilities
701,982
955,122
Net Assets
1,116,201
594,303
Reserves
–
–
Undistributed Funds
1,116,201
594,303
Total Equity
1,116,201
594,303
Deferred revenue
Non Current Liabilities
Equity
annual report 2009 29
statement of changes in equity
$
As at 1 July 2007 Retained earnings at the beginning of the year 436,634 Excess of revenue over expenditure for 2008
157,669
As at 30 June 2008
594,303
Changes in equity from adjustments
–
Excess of revenue over expenditure for 2009
521,898
Other amounts transferred (to) or from reserves
–
As at 30 June 2009
1,116,201
table of cash movements for the designated purposes
Cash Movements for the year ended 30 June 2009
Cash Cash raised available at during year beginning $ of year $
Cash disbursed during year $
Cash available at end of year $
Designated purposes Designated purposes – Overseas Programme 437,638 1,551,635 1,528,690 460,584 Designated purposes – Domestic Programme
154,822
446,903
558,138
43,587
36,691
1,958,897
1,814,534
181,053
629,151
3,957,435
3,901,362
685,224
Designated purposes
383,410
1,979,028
1,769,978
592,460
Other purposes
317,460
754,386
1,035,155
36,691
Total
700,870
2,733,414
2,805,133
629,151
Other purposes Total
Cash Movements for the year ended 30 June 2008
30 annual report 2009
cash flow statement Notes
2009 $
2008 $
Receipts from customers
3,590,677
2,581,564
Payments to suppliers and employees
(3,232,717)
(2,495,748)
Interest received
25,111
38,306
Interest paid
(24,290)
(25,645)
Exchange losses
(11,839)
–
Net cash flows from operating activities
346,942
98,477
Loans provided to affiliates
(509,714)
(270,940)
Repayment of loans by affiliates
266,239
51,992
Purchase of property, plant and equipment
(2,000)
(12,800)
Receipt from property, plant and equipment
408
17,727
Net cash flows used in investing activities
(245,067)
(214,021)
Receipt of loans
75,000
43,825
Repayments of loans
(120,802)
–
Net cash flows from/(used in) financing activities
(45,802)
43,825
Net decrease in cash and cash equivalents
56,073
(71,719)
Cash and cash equivalents at beginning of period
629,151
700,870
Cash and cash equivalents at end of period
685,224
629,151
Cash flows from operating activities
12
Cash flows from investing activities
Cash flows from financing activities
4
annual report 2009 31
notes to the financial statements 1. Corporate Information The financial report of Habitat for Humanity Australia for the year ended 30 June 2009 was authorised for issue in accordance with a resolution of the Directors on 9 October 2009.
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: Presentation of Financial Statements
AASB 107: Cash Flow Statement
AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors
(iv) The presentation of the financial statements has been changed from the prior period in order to meet the ACFID reporting requirements. Prior year comparative figures have been restated accordingly.
(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.
32 annual report 2009
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.
(iv) Interest
Finance income on financial assets is recognised as it accrues using the affective 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 value of such contribution, equivalent to the number of days on build sites is $502,506 and is not included in the Income Statement. (d) International programme expenses Transfers to the overseas Partner Organisations (PO) are not recognised as expenses until financial reports are received and acquitted unlike previous years when all transfers were booked as expenses whether actually spent or not. (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. (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
annual report 2009 33
notes to the financial statements continued
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. An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. (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 – Loans and Receivables Donations provided by HFHA corporate sponsors for housing projects to the Affiliates are treated as long-term loans. All donations are repayable over 15 years in equal monthly instalments. The monthly repayments are held by HFHA as revolving funds and made available to the Affiliates for funding housing projects in Australia. (n) 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. Financial assets and liabilities are classified as current when they are expected to be settled within twelve months from year end. (o) Employee leave benefits
Wages, salaries, annual leave and sick leave.
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long-service leave at the end of the fiscal year are recognised in other payables in respect of employees’ services up to the period.
34 annual report 2009
notes to the financial statements continued
June 2009 $
June 2008 $
3 Revenue and Expenses
a. Finance income
Interest on Affiliate Loans
74,035
17,593
Bank Interest Received
25,111
38,306
Total finance income
99,146
55,899
b. Other Income
Gain on sale of car
Lease incentive
Miscellaneous Income
32,294
–
Total other income
32,294
18,760
–
4,927
–
13,833
c. Depreciation
Depreciation of non-current assets
Furniture and fittings
972
942
Computers
2,436
2,662
Computers – software
14,974
–
Total depreciation expense
18,382
3,604
4 Cash and Cash Equivalents
Cash at bank
684,724
628,651
Cash in hand
500
500
685,224
629,151
Cash at bank earns interest at floating rates based on daily bank deposit rates.
5 Trade and other receivables
Trade receivables
266,219
130,142
Security deposits
–
5,500
Prepayments and Others
––
0
GST Receivables
18,412
14,772
284,631
150,414
6 Financial assets: loans and receivables
Current
Loans to Affiliates and former Affiliates
118,929
96,265
118,929
96,265
Non Current
Loans to Affiliates and former Affiliates
708,594
657,054
708,594
657,054
Loans to affiliates and former affiliates are interest-free and unsecured.
annual report 2009 35
notes to the financial statements continued
June 2009 $
June 2008 $
7 Property, plant and equipment
Computers
At cost
58,210
58,618
Accumulated depreciation
(56,595)
(54,159)
Net carrying amount
1,615
4,459
Computer Software
At cost
29,948
–
Accumulated depreciation
(14,974)
–
Net carrying amount
14,974
–
Furniture
At Cost
6,709
4,709
Accumulated depreciation
(2,493)
(1,520)
Net Carrying amount
4,216
3,189
Total Plant and Equipment
20,805
7,648
8 Trade and other payables
Trade and other creditors
52,925
65,931
Habitat programmes
3,038
–
Other payables
35,782
33,989
91,745
99,920
Bank line of credit
47,046
167,848
47,046
167,848
Donations received in relation to future projects
520,600
678,531
520,600
678,531
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.
9 Borrowings
Bank line of credit account has a credit limit of $200,000.
10 Deferred revenue
Refer to Notes to the Financial Statements para 2(c).
11 Equity
Balance at the beginning of the year
594,303
436,634
Excess of revenue over expenditure
521,898
157,669
Balance at the end of the year
1,116,201
594,303
36 annual report 2009
notes to the financial statements continued
June 2009 $
June 2008 $
521,898
157,669
18,382
3,604
12 Reconciliation of net cash provided by operating activities to operating surplus after income tax
Operating surplus after income tax
Adjustments for non-cash income and expense items:
Depreciation expense
Amortisation of lease incentives
30,021
4,940
Donation Received in kind
(29,947)
–
Lease incentive
–
(13,833)
Fair value adjustments on debt
127,904
119,054
(Increase)/decrease in trade and other receivables
(162,381)
(132,652)
Increase/(decrease) in trade creditors
(547,320)
84,617
Increase/(decrease) in deferred revenue
388,385
(124,922)
Net cash provided from operating activities
346,942
98,477
13 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.
14 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:
Within one year
84,510
69,167
After one year but not more than five years
169,020
-–
More than five years
–
-–
253,530
69,167
Contingent liabilities
HFHA has indemnity guarantees in relation to it’s lease for a total amount of $61,406.
15 Members guarantee HFHA has 105 members as at the end of the year, and there is no limit on the number of members allowed under the HFHA Constitution. In the event of winding up of 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.
annual report 2009 37
unaudited combined financial reports The combined activity of Habitat for Humanity throughout Australia is carried out by Habitat for Humanity Australia and five State Affiliates – Victoria, New South Wales, South Australia, Queensland and Western Australia and their related Chapters. These organisations are independently registered but affiliated through a common vision, mission and covenants. The financial reports presented in this section combine the financial performance and position of Habitat for Humanity’s combined Australian activities. The reports do not form part of the audited financial statements and are presented for comparison purposes only.
Combined position as at 30 June 2009
Combined Totals $
HFH Victoria Australia $ $
New South Wales $
South Queensland Western Australia Australia $ $ $
Assets Current Assets Cash and Cash Equivalent
1,111,510
685,224
Trade and Other Receivables
456,450
403,560
Inventory
1,737,738
–
Loans and Receivables
181,027
Total Current Assets
3,486,725
– 1,088,784
104,006 – 1,347,307
41,930
21,811
229,578
28,961
8,329
41,893
2,668
–
390,431
–
88,582
81,695
10,750
1,539,895
522,385
74,454
– – 232,246
– – 28,961
Non-Current Assets Inventory Lease Incentive Asset
2,976,319 –
–
–
–
–
1,376,754 –
855,373 – –
584,192 160,000 –
–
Property, Plant and Equipment
162,640
20,805
64,010
73,270
Loans and Receivables
4,664,645
708,594
2,850,723
823,337
87,767
2,087
2,468
194,224
Total Non-Current Assets
7,803,604
729,399
2,914,733
2,273,361
943,140
780,503 162,468
–
Total Assets
11,290,329
1,818,183
4,454,628
2,795,746
1,017,594
1,012,749 191,429
Liabilities Current Liabilities Trade and Other Payables
343,705
Financial Liabilities
555,942
170,413
Deferred Revenue
520,600
520,600
Total Current Liabilities
1,420,247
691,013
–
27,444
92,474
10,979
17,500
47,000
491,442
– 44,944
– 139,474
– 502,421
41,322
1,073
–
–
–
–
41,322
1,073
Non-Current Liabilities Financial Liabilities
2,265,256
10,969
1,067,922
663,782
–
515,583
7,000
Total Non-Current Liabilities
2,265,256
10,969
1,067,922
663,782
–
515,583
7,000
Total Liabilities
3,685,503
701,982
1,112,866
803,256
502,421
556,905
8,073
Net Assets
7,604,826
1,116,201
3,341,762
1,992,490
515,173
455,844 183,356
Equity Accumulated Surplus
7,604,826
1,116,201
3,341,762
1,992,490
515,173
455,844 183,356
Total Equity
7,604,826
1,116,201
3,341,762
1,992,490
515,173
455,844 183,356
38 annual report 2009
unaudited combined financial reports continued Combined performance for the year ended 30 June 2009
Combined Totals $
HFH Victoria Australia $ $
New South Wales $
South Queensland Western Australia Australia $ $ $
Revenue House Sales
2,632,704
– 1,162,559
1,162,845
–
307,300
–
Donations and Gifts Monetary
3,879,660
2,490,438
Non-monetary
130,631
130,631
Donations and Gifts
4,010,291
2,621,069
2,373
2,373
Bequests and Legacies
Overseas Grants
452,491 – 452,491 –
– 289,033 –
– 384,734 –
–
–
52,306 210,658 –
765,533
765,533 99,146
134
25,556
5,290
30
1,007
Other Income
262,352
32,294
14,762
157,941
10,102
47,213
40
– 3,520,415
–
– 1,635,375
(676,961)
(1,005,100)
952,985
630,275
400,126
–
–
–
7,804,416
Cost of Sales
(1,842,881)
Gross Operating Income
5,961,535
3,520,415
Funds to international programmes
752,045
752,045
Domestic Programmes Expenditure
480,671
228,766
207,597
2,830
39,327
602
1,549
Programme support costs
701,185
335,105
159,089
53,772
112,340
11,440
29,439
Total Overseas Projects
1,933,902
1,315,916
366,686
56,602
151,667
12,042
30,988
–
1,629,946
–
–
–
131,163 –
–
52,306 210,658
Revenue for Int’l, Political and Religious Programmes
–
384,734
Investment (Interest) Income
–
289,033
– 400,126
406,849
211,705
(160,820)
–
246,029
211,705
Overseas Projects –
–
–
–
–
Community education
29,118
28,451
–
–
667
–
–
Fund raising Costs Public
743,809
632,511
93,634
12,991
162
3,510
1,001
Government, multilateral and private
268,786
213,241
32,000
8,661
3,980
10,905
–
1,012,595
845,752
125,634
21,652
4,142
14,415
1,001
782,530
499,827
131,542
74,037
56,746
11,101
9,277
Total Fund raising Costs
Accountability and Administration Non-monetary Expenditure
Contributed services
96,135
96,135
Amortisation of Lease Incentive
30,021
30,021
Depreciation
69,761
18,382
19,416
30,549
195,917
144,538
19,416
30,549
Total Non-monetary Expenditure Expenditure on Int’l, Political or Religious Proselytisation Programmes
–
–
–
–
–
–
–
–
1,118
296
–
1,118
296
–
–
–
–
–
11,839
–
–
–
–
–
NPV Charge on loan to Affiliates & former Affiliates
127,904
127,904
–
–
–
–
–
NPV Charge on mortgages
348,090
–
–
348,090
–
–
–
Inventory impairment
–
–
–
11,839
Exchange Loss
–
–
52,088
–
52,088
–
–
–
4,493,982
2,974,227
–
643,278
583,017
213,222
38,676
41,562
Surplus from continuing operations before tax and finance costs
1,467,553
546,188
309,707
47,258
186,904
Finance Costs
117,470
24,290
5,962
83,742
1,368
Surplus for the period
1,350,084
521,898
303,745
(36,484)
185,536
207,354 170,143 1,970
138
205,384 170,005
annual report 2009 39
how you can help
= hope
An investment in Habitat for Humanity Australia makes an immediate and visible difference to the lives of families who are changed forever. Large or small, your financial contribution will make a real difference to the mission of Habitat.
There are many ways to make a difference 1 Give directly Make a one-off, fully tax-deductible donation to support an appeal of your choice. 2 Become a HopeBuilder Sign up for a monthly direct debit from your credit card or bank account and join our team of HopeBuilders. You will receive recognition in our annual honour booklet as well as merchandise and regular updates. 3 Become a LegacyBuilder By leaving a bequest to Habitat, you can help the world’s poorest families build safe and secure homes. 4 Volunteer Travel and change the world by helping to build homes alongside families in need, here at home and overseas, through our Global Village programme. 5 Become a Corporate Partner A partnership with Habitat can provide your company with a unique opportunity to engage your employees and contributue to the community by building homes for families in need. The need is great and with your help we can make a real difference. For more information about any of these options, call 1800 88 55 99 or visit www.habitat.org.au
40 annual report 2009
“Our mission… To mobilise volunteers and community partners in building affordable housing and promoting home ownership as a means to breaking the cycle of poverty.”
donation form I wish to make a lasting difference to the work of Habitat by giving a regular gift of: $30
$50
$100 or
$
per month (my choice)
minimum $15 per month
Or Here is my single gift of: $50
$100
$500
$
$1000 or (my choice)
My payment details are: Mastercard
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Signature: Expiry:
Cheque / money order (payable to Habitat for Humanity) Mr/Mrs/Ms/Miss/other:
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Gifts over $2 are tax deductible Please return this form to: Habitat for Humanity, PO Box 1048, North Sydney NSW 2059 Your donation will be applied to the area of greatest need.
“We believe that access to safe, decent and affordable housing is a basic human right and should be available to all.”
I am interested in leaving a bequest – please send me information on your LegacyBuilder programme I am interested in volunteering – please send me information Thank you
Building Homes, Building Community, Building Hope
For their assistance in producing the 2009 annual report we would like to thank… • Auditors – Ernst & Young • Graphic design – Robinson Young • Assistant editor – Anna Le Masurier • Printing – Dobson’s Printing • Paper – Raleigh Paper
This annual report is printed on ecoStar 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 is manufactured from 100% post consumer recycled paper in a process chlorine free environment under the ISO 14001 environmental management system.
= hope
Habitat for Humanity Australia Level 9 20 Berry Street North Sydney NSW 2060 PO Box 1048 North Sydney NSW 2059 p: 02 9919 7000 f: 02 9919 7088 freecall: 1800 88 55 99 e: info@habitat.org.au
w: www.habitat.org.au ABN 66 095 541 841 CFN 17209
Building Homes, Building Community, Building Hope