Lighthouse annual report 2013 14 by lighthousefoundation

Annual Report July 2013 - June 2014 ABN 12 101 549 508

Having a place to go - is a home. Having someone to love - is a family. DONNA HEDGES

Welcome to

ours.

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Our vision: ending youth homelessness together. Our mission: to increase the availability of Lighthouse Foundation’s model of care to homeless young people throughout Australia. Our values: respect, courage, kindness.

CONTENTS 5 7 9 10 12 13 14 17 19 21 22 25 27 28 29 30 32

Our Founder’s Message - Susan Barton AM Our Chair’s Message - Peter Edwards Our CEO’s Message - Kane Bowden Overview of Lighthouse Programs Care Team Services and Relationships Lighthouse Integrated Care Team Model Young People’s Stories Volunteers Our Community Committees Transitions to Independence Highlights Lighthouse Institute Executive Director’s Message - Rudy Gonzalez Lighthouse Institute: Journey to Recovery Lighthouse Institute: Royal Commission into Institutional Responses to Child Sexual Abuse, Model Expansion in South Australia, External Training and Consultancy Program Lighthouse Institute: Posit Science, QICSA’s Department of Human Services Standard Accreditation Program, On For Life Database Lighthouse Institute: Research and Evaluation Corporate Supporters and Philanthropic Supporters

FINANCIAL REPORT 34 35 43 44 45 46 47 48 61 62

Financial Snapshot Directors’ report Auditor’s independence declaration Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to financial statements Directors’ declaration Independent auditor’s report

Our Founder’s Message Susan Barton AM

We always think of the Lighthouse logo as being a ‘house of light’. It’s a symbol of the end of the sad, and dark experiences that the young people can begin to put behind them when they find the support of a Lighthouse family home. In this environment they can recover and heal, and begin to form trusting relationships. The young people of Lighthouse continue to inspire me with their courage and determination. For 24 years Lighthouse has been providing a safe and nurturing family home for Australia’s children and young people who are at risk of homelessness. It amazes me when the young people I first brought into my own home over twenty four years ago visit me at Lighthouse bringing along their own teenage children and tales of their remarkable successes in business and in family life. Our open door policy at the Youth Resource Centre in Richmond means we can keep in touch with the more than 700 young people who have graduated into independent living after a period in our Lighthouse family homes. We share a cuppa or have a meal together and often a celebration cake for birthdays, graduations, engagements and every other life event. This sense of ongoing family connection is a unique element of the Lighthouse Model of Care™ and is one of the reasons for the positive adult life outcomes for our young people. The past year has seen Lighthouse expand its influence nationally, and I am deeply grateful for those leaders in other organisations, such as South Australia’s SYC, who have undertaken the process of transferring the Lighthouse Model of CareTM into their own family homes for

young people. With our vision to end youth homelessness permanently in Australia, we can now see a clear pathway to expand more rapidly with partnerships with other organisations who are seeking to implement Lighthouse’s effective therapeutic residential care programs. Everyone wants the best outcomes for these vulnerable young people and it is exciting to see the momentum increasing as Lighthouse’s best-practice programs are adopted by other partner organisations.

The future is looking bright as we come together with the community to circle each of our young people within a loop of loving support. I couldn’t be more proud of them all.

One of the many highlights of the past year was the opening of the newly built PIF Lighthouse home at Bonbeach. This magniﬁcent six bedroom home, which is just a short walk to the beach, will be a place of healing for our young people who have experienced the traumas of homelessness and possibly earlier grief and trauma from periods of neglect and abuse. Our friends at Channel Nine’s The Block, helped decorate the four young people’s bedrooms, so you can imagine how overwhelming it was for the ﬁrst four young people who now make their home there. I am deeply moved by the generosity of all those who donated services and goods to create this beautiful PIF Lighthouse home.

Our Chairman’s Message Peter Edwards

We are committed to expanding Lighthouse programs and methods across Australia to ensure every homeless young person has access to best practice therapeutic care. Every child is precious and deserves a safe and loving family home. The past year has been another excellent year for Lighthouse and I am very pleased with the progress the organisation is making. Our key achievement was the establishment of our ﬁrst partnership with SYC in South Australia. It is very exciting to have established the ﬁrst three partnership homes in Adelaide, in which so many young people will experience the life-changing Lighthouse Model of CareTM. SYC has proven to be a wonderful partner and shares our goal of providing the Lighthouse Model of Care™ to the many Australian children and young people who need it. I thank them and the South Australian Government for joining with us in our efforts to end youth homelessness. Throughout the year we have continued to provide care to young homeless people and children in Victoria in our 10 homes. Over 23 years, these homes have been a safe haven for over 700 of our most vulnerable children and young people. I would like to thank the Lighthouse staff and carers for their truly remarkable work in helping them to recover from their trauma and prepare for life in the community.

we remain deeply saddened by the terrible effects of abuse on survivors, I am proud of the work our Institute is doing to help alleviate some of that suffering. I commend the Australian Government for its work through the Royal Commission into Institutional Responses to Child Sexual Abuse and am pleased that Lighthouse has been able to play a part in the recovery process. The year has been a very good one and the future for Lighthouse is bright. Our journey to this point would not have been possible without the support of so many people. To our wonderful supporters, I offer my sincere thanks and invite you to continue to stand with us as we build momentum with our strategy to expand the Lighthouse Model of CareTM. Our most precious resource is our children and our aim will ever remain to ensure that those Australian children without a home can access the Lighthouse Model of Therapeutic Care, wherever they may be.

BOARD OF DIRECTORS DURING 2013 - 2014 Peter Edwards Susan Barton AM Bernie Durkin Bill Mountford David Leeton Richard Lloyd Steve Buxton Vicki Vidor OAM (resigned Nov 2013) Terrie Barton (Company Secretary)

OUR PATRONS Beverly Brock Deborra-lee Furness Mrs Elizabeth Chernov Max Walker AM Michael Crawford CBE Professor Brian Burdekin AO Sir Clive Lloyd CBE AO Tim Watson

OUR AMBASSADORS Alicia Loxley Jo Stanley Joel Bowden Kara and Kyal Demmrich Stevie Nicholson Mick Molloy

Over the year, the Lighthouse Institute further established itself and continued to deliver high quality, trauma-informed training to many other community organisations. We have been especially pleased to support those groups providing front line support to survivors of child sexual abuse. While

Our CEO’s Message Kane Bowden

In the past year, Lighthouse has been operating programs or training in every Australian state. This has been made possible with the support of our partners in the philanthropic, corporate, government and community sectors, and through the efforts of our dedicated staff and volunteers. I am pleased to report another surplus financial result for the organisation and excellent progress against our strategic priorities in the 2014 financial year to ensure Lighthouse continues to fight a winning battle against youth homelessness.

Although it remained a challenging environment in which to fundraise, our performance was solid as our supporters (both long-term and new) continued to invest in our proven programs and the work of the Lighthouse Institute.

In summary, our team of dedicated professionals provided best-practice care to 60 young people across our Lighthouse homes in Victoria. 60 more were provided with support while living independently through our Outreach support program.

Notably, in the past year our work was supported by signiﬁcant contributions from the Sidney Myer Fund and Gandel Philanthropy. Lighthouse also has no better friend than the Property Industry Foundation who built our newest Lighthouse home at Bonbeach with Australand leading the construction. PIF continues to provide ongoing funding for the program run in the new home. Other loyal supporters have continued to fund our homes, and special appreciation goes to Vicki Vidor and Vicki Standish for many years of philanthropic leadership. Several of Australia’s leading corporations have also got behind Lighthouse’s work, and we wish to acknowledge Porsche Cars Australia for their home sponsorship and valued partnership.

Our South Australian partner, SYC, established the first set of homes to operate the Lighthouse model of care under the Lighthouse Institute’s supervision. This partnership paves the way for future expansion of the model. I am particularly pleased to report that Lighthouse’s trauma-informed training funded by the Federal Government’s Royal Commission into Institutional Responses to Child Sexual Abuse was delivered on 79 occasions across Australia. Our Institute’s evaluation shows that participants were 90% satisfied with the training. General training activity increased by 180%, reflecting the strong appetite within the sector during a period of reform.

While there is still a long way to go, I can assure you that we will continue to work hard to deliver our strategic priorities, to achieve our vision of ending youth homelessness. Together, we can end youth homelessness in Australia.

Thank you all for your support over the last year. Such a good year for Lighthouse has only been possible thanks to the hard work and dedication of our staff and volunteers and the support of our partners in the philanthropic, corporate, government and community sectors.

Overview of Lighthouse Programs

Evidence gathered from evaluation of 24 years of Lighthouse programs shows a signiﬁcantly higher chance of positive life outcomes for our young people when they have transitioned to independent living. Lighthouse Foundation continues to operate ten homes in Victoria, as well as supervising homes in South Australia operated by SYC as part of a transfer of the Lighthouse Model of Care™. Several other organisations have also signed letters of intent, in relation to utilising the Lighthouse model within their own residential care programs. A Lighthouse home caters for four young people aged 15-22 years of age when they arrive, who are cared for by a Primary Carer and a Secondary Carer. Carers are trained in the full range of theories of development from childhood to adulthood and are able to implement the best ways in which to care for each young person. Loving volunteers from all parts of the community become extended family, making sure their Lighthouse home has everything it needs to be a secure and safe environment. Each community committee meets regularly to focus on the needs of the young people and Carers in their home. The Lighthouse Model of Care™ also has highly capable psychologists who on a regular basis conduct individual sessions with each of our young people, as well as provide specialist advice to Carers on how best to support the young people. Each young person in our homes has a case manager who reviews their progress through an Individual Development Plan.

This combination of Lighthouse specialists works together with each young person to gradually assist them to lead autonomous and fulﬁlling lives as adults. Using the Therapeutic Outcomes Assessment Tool™, Lighthouse Foundation is able to measure the changes in the lives of young people, providing an evidence base for our practice and opportunities for further enhancement. The average time that a young person is with us before they are able to integrate fully back into the community is 18 months. All of the work we do revolves around attachment and trauma informed practice, but what makes Lighthouse Foundation different is that the theory is combined with more than two decades of delivery, tweaking and a proven track record.

Care Team Services and Relationships

The Lighthouse Foundation Care Team have closed another ﬁnancial year punching well above their weight. Our Care Team has supported 60 young people through our Live-In care program this ﬁnancial year, providing both residential and clinical support. In addition, the Community Care Team provided 756 hours of Outreach support. The young people’s achievements are extensive and inspirational, with outcomes spanning across educational, employment, and relational domains.

In order to meet the growing demands on services, the Care Team expanded Outreach and Clinical supports through the increase in Community Care and Psychologist hours. This expansion was necessary in light of the opening of the Bonbeach Home and the fact that the longer Lighthouse Foundation operates, the larger our community becomes and, therefore, the greater the demand on support services.

Bonbeach Home Opening This year was marked by the opening of the Lighthouse Bonbeach Home in collaboration with our partners the Property Industry Foundation and Australand, the lead builder. In parallel to the construction of this beautiful home, the Care Team was busy recruiting carers and facilitating the intake of young people into the program. The combined efforts culminated in the ofﬁcial opening on 26 February 2014. It was a demonstration of community working together and reminded us of Jean Vanier’s quote “Community is a sign that love is possible in a materialistic world…”

Assessment Tools The Psychological Wellness Team undertook a signiﬁcant project to review and redevelop our Psychosocial Assessment Tools. The tools are used to ensure the placements of young people in the program are in their best interests. They are also used to assist in assessing the suitability of staff. Through the review, the team identiﬁed more valid, and updated tools with regards to the measurement of mental health symptoms and intellectual functioning. The proforma of the screen was also revised to be more user friendly.

Expansion of the Care Team The Lighthouse Foundation Integrated Care Team Model ensures the application of trauma-informed, therapeutic care principles through consistent planning, implementation, monitoring, and review of the young people’s care in line with the Best Interests Framework.

Leading from the Heart Camp 28 young people and 20 staff attended the Leading from the Heart camp at Phillip Island. It was a fantastic opportunity for the community to spend time together developing relationships and participating in a range of personal development and recreational activities.

One of the highlights of the weekend was the involvement of Reach Foundation, who sent facilitators to run a workshop for most of Saturday. We would also like to take this opportunity to acknowledge Scotch College for donating the camp facility. Partnerships In order to increase our capacity to respond to young people who may present with Alcohol and Other Drugs (AOD) issues, Lighthouse Foundation formed a partnership with Alcohol and Drug Help. The partnership involves the provision of a property in Frankston by Lighthouse and the delivery of a residential treatment program by Alcohol and Drug Help at that location, which our young people can access with minimal wait time. Alcohol and Drug Help Managers also provide secondary consultation to our Care Team. This partnership has bolstered our capacity to responsively meet the needs of our community.

Lighthouse Integrated Care Team Model

The Lighthouse Foundation Integrated Care Team is responsible for the planning, implementation, monitoring, and reviewing of young peoples’ day-to-day care. The model supports case conferencing and stakeholder engagement to ensure a coordinated and complete approach that addresses each young person’s needs. We know that over time young people’s needs change and our regular assessment and review processes ensure case plans reﬂect their varying needs. The model also provides the opportunity for the young person to establish multiple positive relationships while maintaining a consistency in approach.

Senior Carer Carers

Community Care Worker

Clinician

Board and Management

Community Committees

Young People’s Stories

Today, over 700 young people can call Lighthouse home. These stories are from current and past Lighthouse young people and remind us how important a loving home can be. Kellie was referred to Lighthouse after spending several months drifting in and out of a youth refuge. She was reluctant to engage with the intake workers and very hostile towards those attempting to help her. It took a long while to prove to her that the Lighthouse program was authentic and a place she could truly find safety. After some time she began to open up to the Care Team about her background which included horrific episodes of physical abuse. She had been sexually assaulted within her own home for many years and was generally mistrusting of all authority figures. Her multiple health problems included anxiety, depression, and incidences of selfharm. She required urgent dental work and assistance with skin issues. With Lighthouse, she has been able to rest, recover her health, and ultimately return to finish her education part-time via distance education. She is now in her final year of study and has hopes of entering a tertiary course involving web design. She has found some self-confidence with her skin clearing up, and her teeth being fixed. She actively takes part in a fitness campaign of regular swimming with the carer and other young people in her Lighthouse home. Kellie’s future is now full of hope and she is connected to friends who genuinely care for her well-being. ……………………………………...............

“Coming in to Lighthouse, the first thing that got to me was – there’s always food, and plenty of it, and the fridge isn’t locked like in the refuge. Just having private space is a huge thing for me. I don’t have to keep moving my stuff. I am home. I belong here now. Somebody gives a **** about me. That’s massive.” Quote from Emma Lighthouse young person. ……………………………………............... One of the Lighthouse team was recently donating blood when the young woman inserting the needle noticed the silver Lighthouse charm on her bracelet. She commented that she had been “brought up in Lighthouse.” She went on to explain that she had hit rock bottom in her teens and had found herself entirely alone on the streets. Finding a safe and nurturing family with Lighthouse had stabilised her life and allowed her to find her feet. She went on to do medical aide training and had been in secure work all her adult life. She was now in a stable relationship and was delighted to be pregnant with her first child.

Dan has a boisterous personality and seems to make friends easily. He is emerging as a leader amongst his peers and is interested in assisting with setting up a new social media hub exclusively for the young people themselves. He has returned to school and is settling well with the assistance of some Maths tutoring. Recently, several of the Lighthouse team, plus one of his siblings, attended a school event where Dan played a key role. He was happy to have a family team there to support him, just as the other students did. ……………………………………............... Cameron from Lighthouse had survived signiﬁcant trauma, and has limited family and social support. He has recently been offered a highly sought after apprenticeship with one of Lighthouse’s trusted corporate supporters. This young man, his carers and housemates are all bursting with pride and excitement as he seizes this opportunity to begin a career pathway. (Names have been changed to protect identities).

Volunteers

Our mission is to work together with the community to end youth homelessness, and this is exactly what our volunteers enable us to do. Hundreds of remarkable individuals have given up their time this year to provide a range of assistance at our Lighthouse homes, in our office, and at our fundraising events. They surround our young people with a circle of community support, and give freely of their professional skills and of their energy and time. This past year has seen a doubling of our volunteer numbers due to Lighthouse’s increased national profile and involvement in events. Over 400 individual people were involved in volunteer activities, and many of these people volunteered several times. Some continue to donate their time on a regular weekly basis and they have become a treasured part of the Lighthouse team. Key office administration volunteers included Kim Encel, Kristen Barker, Irabaan Majumdar, Georges Dwyer, Jessica Naumovic and Charles Phan. Event assistance was provided at the Opening Celebration for the PIF Lighthouse Home at Bonbeach, The Block: Open For Inspection weekend, The Build and Home Expo, The Small Business Marketplace, The Lighthouse Institute Journey To Recovery Conference, and a range of Home Committee events. Volunteers, including Sharon Weill, also assisted in running our Winter Wonderland dinner dance and the Valentine’s Day Share Your Heart luncheon. Both these functions were organised by the amazing Danielle Schofield who provided her services pro bono. The annual Lighthouse footy lunch, Beyond The Bounce, was also supported by an energetic team of corporate volunteers. A large number of volunteers from the construction industry also gave freely of their time in building our beautiful new PIF Bonbeach home, working under the

direction of lead builder from Australand, and other trade/services contributions from the Property Industry Foundation’s membership. It was a very proud group of 100 supporters and volunteers who attended the opening. Corporate groups have also made a big impact with their working bees at our suburban Lighthouse homes. These fun group activity days usually end with a BBQ for all the workers plus the young people and carers from that home. We extend our thanks this year to teams from Dun & Bradstreet, SEEK, AMP, Vanguard, Glaxo Smith and Kline, Colonial First State, Telstra, Bunnings, Figurehead Constructions, and Amgen. These great friends of Lighthouse have helped transform the spaces and keep the homes comfortable and attractive places for our young people to rest and recover.

Other volunteers assisted as Committee members for each of the Community Committees which surround our suburban Lighthouse homes with local support. Particular thanks goes to the Chairpersons of each committee for their work, and for the wonderful efforts all of them have made with putting on a range of events, ranging from Bunnings BBQs to exclusive fundraising dinners. Each of the Lighthouse Ambassadors also gave selﬂessly this year to promote Lighthouse at every opportunity. We send our special appreciation to Jo Stanley, Mick Molloy, Tim Watson, Alicia Loxley, Joel Bowden, Kyal and Kara Dimmich, and Stevie Nicholson for their signiﬁcant support for Lighthouse events and publicity. Working together with the community is what we are on about, and our volunteers continue to make that happen at Lighthouse.

This year we were fortunate to beneﬁt from several highly capable people making their way through our internship programs. Several of these have now permanently joined the team. We give thanks to the following people for their signiﬁcant contributions as interns: Christie Byrne and Tess Drobvik in Marketing, Tony Jovanowski and Catherine Keating in the Institute, and Shanti Monteiro, and Annette Krastins in Psychology placements in the Care Team.

Our Community Committees

Each Lighthouse family home is supported by a community committee made up of dedicated people who volunteer their time to support the carers and young people in that home. These trusted local people, from diverse backgrounds, form a circle of support around the home, providing a vital community connection. Ballarat – The Ballarat community committee galvanizes the support of many local groups to help out the home. Contributions of funds and other practical support has come from The Lions Club of Ballarat, Guiding Star Lodge, Freemasons, Timbeck Charitable Trust and the Rotary Club of Ballarat South. Clayton – The bonds between the young people in our Clayton home with the Clayton committee strengthened this year with all monthly meetings being held in the home. Committee member, Dessie Kontis, once again donated the funds for the annual George Awards. Boronia – This year a new team of committee members stepped up to throw their support behind the Boronia home. Heathmont – The Mothers and Babies program at Heathmont continues to require constant replenishment of furnishings and baby supplies and equipment as mums moving to independent living take with them whatever their child needs. The Heathmont home received the funds raised at the annual Share Your Heart Valentine’s Day luncheon and the annual Winter Wonderland Dinner Dance. Springvale – The Springvale Committee hosts its meetings in the elegant boardroom at Porsche Cars Australia and they run some classy events each year. This committee hit a hole-in-one by pairing with the Cheltenham committee for the annual

Royal Melbourne Golf Day and then they hit an ace with the elegant Women With Drive cocktail event featuring Maria Sharapova and Sonia Kruger. The Springvale home has been able to purchase some new furnishings with the proceeds of these events. East Malvern – This committed group hosted a full calendar of events, including their inaugural Cocktails for a Cause night at William Angliss. They also hosted two successful children’s football clinics with many AFL stars in attendance. The generous support of the Standish family continues to be an inspiring inﬂuence on all those carers and young people who pass through the East Malvern home. Kensington – A group of new committee members stepped up to assist on the Kensington committee this year, initially focusing on fulﬁlling the Wish List for the young people in the home. A variety of fundraising events took place, including a Bunnings BBQ and a Trivia night at Arcadia. Committee member Sam Chester and his wife Jess received a special Volunteering Award from Rupert Murdoch at Cruden Farm. Richmond – The Cabrini Richmond Lighthouse home continues to be well supported by our Richmond Committee which includes our longest serving committee member, Judy Nancarrow, who was also honoured for her long service by receiving a Volunteering Award from Rupert

Murdoch at an event at Cruden Farm. The 17 year partnership between Cabrini and Lighthouse to support this particular home was honoured by a special Partnership Grant from the NAB. Bonbeach – The newly built PIF Bonbeach home celebrated its opening with the first gatherings of its new community committee. The first six people to come on board immediately sprang into action, donating in-kind services to the home and hosting a silent auction fundraiser. This new committee will build further membership and continue to ensure the strong connections to the local community that will provide the best outcomes for the young people in the home, especially local work experience and part time employment. Greenvale – The spacious home at Greenvale benefitted from a dynamic volunteer working bee at the start of the year, with this generous corporate group also donating board games and sporting equipment for the home. Cheltenham – The Cheltenham committee - which supported the Adult Community Transition Home - maintained their golfing roots, taking part in the SKAL Golf Day in October, the MCC Golf Day in April, and their annual Royal Melbourne Golf Day in May, (pairing up with the Springvale committee).

Transitions to Independence

The goal of the Lighthouse residential program is ultimately to transition the young people into sustainable independent living. The time this takes varies, and there is no cut-off age. Young people stay in the program as long as they need, giving them time to stabilize their health and re-establish bonds of connection with the community. Providing a permanent end to homelessness requires much more than just a house. It requires the reconnection of the young person back within their community, and building strong bonds of attachment with people who genuinely care. The Lighthouse Model of Care™ aims to address and heal the underlying trauma which holds young people in a cycle of despair, alienation, and ultimately homelessness. The goal is for each of our young people in our residential program to transition to sustainable independent living, where they go on to make their own unique and valuable contribution to society. Each one of our young people is following an individual program which doesn’t set a time limit on their stay in one of the Lighthouse homes. They stay as long as they need to be supported. It is not unusual for a young person to stay 18 months, but sometimes the transition to independent living can happen within six months. In each Lighthouse suburban home, the young people operate as a family unit, taking turns for chores, and learning responsibility for tasks like paying the bills and managing the food shopping budget. Cooking is a life skill which is frequently a new challenge for the young people, and by cooking alongside the Carer, they learn to manage a range of easy nutritious meals that they can replicate when they are living outside Lighthouse.

Completing their education is often an important part of building a more positive future life. The young people attending school receive support with counselling, tutoring, and in managing routines. For some, it can be a significant challenge to re-engage with their education, and a period of rest and recovery is needed before commencing with part time or online studies. Corporate supporters of Lighthouse and members of the home’s community committee often source work experience and employment options which help build confidence and useful work skills. Several Lighthouse young people complete vocational training courses such as Barista certification or in Aged Care. Frequently, the young people move out to shared rental accommodation not too far from their Lighthouse home and the Carers with whom they have established a bond of attachment. They continue to visit the home for shared meals and celebrations. Other transitions occur when a ‘kinship’ relationship is re-established, and a relative becomes able to offer a place in their home for the young person. Sometimes this is with a grandparent or an older sibling. This is carefully monitored by the Lighthouse team to ensure the young person’s safety and well-being. Sometimes this new household doesn’t work out, and a relationship might break down, and the young person may spiral down into difficulties. It is at that point that Lighthouse

still ‘has their back’ and can provide a range of support, including counselling within our Outreach program. This ongoing support is a key feature of the Lighthouse Model of Care™ and contributes signiﬁcantly to providing the positive outcomes for our young people. Evaluation currently shows that 80% of homeless young people who take part in the Lighthouse residential program never experience another night of homelessness and go on to lead lives of positive contribution. Current statistical data on young people leaving State Care shows that less than 60% know where they will be living when they leave, with the cycle of homelessness continuing for over 50% of those young people. In 2011, Social Ventures Australia measured the social impact of the seven hundred young lives that have changed their direction through their involvement with Lighthouse. The research shows that for every dollar invested in our programs, there is a $12 beneﬁt for society in future contributions from the young people rather than in the expenses of health care, welfare payments and possible involvement in the youth justice system.

Highlights

The past year saw several outstanding promotions for Lighthouse brought to us from corporate supporters. Lighthouse Foundation was chosen as the official charity of the Build and Home Expo at the Melbourne Exhibition Centre in July 2013, providing the chance to involve almost 100 volunteers over the three days to engage the general public and spread the word about youth homelessness and the solutions. This opportunity created an increase in our supporter base, as well as gathering donations and connections to the construction industry. A feature was the construction of a giant Lighthouse logo made from bricks decorated by the many different families who visited our familythemed interactive display. The Property Industry Foundation (PIF) once again proved themselves a valuable friend to Lighthouse’s young people by constructing a stunning new six bedroom home in the Melbourne seaside suburb of Bonbeach. With Australand’s commitment as lead builder, and extensive support through donations of skilled work and materials, it was a proud occasion when the home was officially opened in February 2014 with 90 of those who had backed the project attending a celebration. The first young people moved in that same week and were initially overwhelmed by their new home.

Channel Nine’s popular TV show “The Block,” chose for the second time to partner with Lighthouse for a contestant challenge which would bring publicity to our cause, and would see four pairs of contestants each decorate one of the young people’s bedrooms in the new PIF Bonbeach home. Three million viewers watched the episode with the Lighthouse challenge, and this generated much interest in our programs, donations through the SHOUT phone donor app, and attracted many new supporters and volunteers. We were able to use about 60 of these volunteers at “The Block: Open For Inspection” event which saw over 40,000 people queuing to look through the renovated Block apartments. As Kyal and Kara had become Lighthouse Ambassadors following the challenge, we were invited to attend over the weekend and to collect donations and to engage new supporters. Social media played a big part in Lighthouse’s promotions around The Block, and has continued to be a key method of communication and engagement with Lighthouse’s growing supporter base. You can follow Lighthouse on Facebook, Twitter, Linked In, and by subscribing to our monthly e-news, “Lighthearted.” The Lighthouse website www.lighthousefoundation.org.au recorded its highest trafﬁc around the TV airing of “The Block” challenge.

Other special events this year, which were supported by our Ambassadors and Patrons, as well as the wider Lighthouse community, included the Winter Wonderland dinner dance at Carousel, the Valentine’s Day, Share Your Heart luncheon,and the annual football lunch at the MCG, Beyond The Bounce.

Right: Lighthouse Ambassadors, Jo Stanley and Hi-5’s Stevie Nicholson, pictured here with Lighthouse Founder, Susan Barton AM, spoke at the Valentine’s Day Share Your Heart Luncheon at the Royal Melbourne Yacht Squadron. Below: Lighthouse CEO, Kane Bowden, with The Block host, Shelley Craft, ﬁlm the contestant challenge at Bonbeach. Each couple decorated one of the four young people’s bedrooms.

Ofﬁce Manager, Terrie Barton, wrote a heartfelt thank you letter to The Block: Fans Versus Faves contestants. Much to her surprise, the letter was read aloud on the show, being seen by three million viewers around Australia. Kyal and Kara Demmrich showed their sincere support for our young people by coming on board as Lighthouse Ambassadors.

Left and below: In February 2014 at the ofﬁcial opening of the newly built PIF Lighthouse home at Bonbeach, 100 of those who had worked on the construction and ﬁtout project came along to celebrate.

Tennis superstar, Maria Sharapova, threw her support behind Lighthouse at the Porsche, Women With Drive event. She actually played a few gentle shots with Susan Barton AM.

A Message from Rudy Gonzalez Executive Director, Lighthouse Institute

The 2014 financial year has been a successful and productive year for Lighthouse Institute, with our first expansion of the Lighthouse Model in South Australia and growth of our training and consultancy program across Australia. The 2014 financial year was a very successful and productive year for Lighthouse Institute. With such a talented team in place, we were able to implement our Action Plan and further develop the training, consultancy and research arm of the organisation. The major achievement of the year was the implementation of the Lighthouse Model of Care™ in South Australia in partnership with SYC and Families SA. In 2014, SYC became the first organisation in Australia to be licensed to use the Lighthouse Model of Care™. SYC set up three homes in Adelaide as part of their HYPA (Helping Young People Achieve) program, as well the Clinical Care Team to support the running of the homes. This initiative is the first of what will be a number of expansions of Lighthouse homes across Australia in partnership with communitity organisations and government. The inaugural Journey to Recovery: The International Conference of Attachment and Trauma Informed Practice™ was held at the MCG in August 2013. The conference came at a pivotal time for practitioners, policy makers, researchers, consultants, carers and survivors of trauma. It was a collaborative opportunity to tap into a growing body of knowledge, practical experiences and expertise. In total, 270 delegates from 105 organisations attended

the conference from a diverse range of sectors. I would like to take the time to thank our knowledge partners for their support in organising the conference: Oz Child, Centre for Excellence in Child and Family Welfare, University of Melbourne, Orygen Youth Health Research Centre, EACH and QEC. The Institute experienced growth in its Training and Consultancy work. In January 2013, the Australian Government commissioned an independent inquiry into Institutional Responses to Child Sexual Abuse. Lighthouse Institute was one of four organisations that received the funding speciﬁcally to provide training services. From February to June, Lighthouse Institute trained 1633 participants over 79 sessions across Australia. In addition, through its training and consultancy program the Institute also provided trauma informed training to more than 1000 practitioners across 18 organisations and experienced a signiﬁcant increase in consultancy work.

and Accredited Programs accreditation for Lighthouse Foundation, and the expansion of the research program in partnership with University of Melbourne/Orygen Youth Health Research Centre. I would like to thank all who have supported Lighthouse Institute in 2014 including our staff, students, volunteers, philanthropic, corporate, community and knowledge partners. We look forward to the further growth of the Institute in the coming years.

Other achievements include the development of a partnership with PositScience to bring brain training programs to traumatised children and young people in Australia, development of the new On For Life Database to track developmental changes for children and young people in the Lighthouse Model of Care™, and leading the successful QICSA and Human Services Standards

Left: Participants listening carefully at training. Lighthouse Institute has delivered training and consultancy to over 1000 participants in the last ﬁnancial year.

Above: Staff from SYC in Adelaide came to Melbourne over a few days to learn about Lighthouse’s Model of Care™. This partnership has been the ﬁrst implementation of the Lighthouse Model of Care™ outside Lighthouse Foundation. Above: Lighthouse Institute holding internal training at our Youth Resource and Administration Centre.

Left: The SYC and Lighthouse team on the last day of SYC’s visit to the Lighthouse Youth Resource and Administration Centre. In their time here, the SYC team got to learn about Lighthouse’s Model of Care™ through training and home visits.

Far left and above: The Institute has provided training with a focus on attachment, psychosocial development, trauma, organisational culture and therapeutic community development work.

Lighthouse Institute Journey to Recovery: The International Conference of Attachment & Trauma Informed Practice™ Journey to Recovery: The International Conference of Attachment and Trauma Informed Practice™, was held from 13 –14 August 2013 at the iconic Melbourne Cricket Ground. The conference came at a pivotal time for practitioners, policy makers, researchers, consultants, carers and survivors of trauma. It was a collaborative opportunity to tap into a growing body of knowledge, practical experiences and expertise in attachment and trauma informed work. Over the course of the two days, the Conference showcased twenty seven presentations and practice workshops, as well as emotive presentations from a Carer and a Survivor of Trauma about the challenges they have faced and the essential elements of the recovery process. We had keynote addresses from some of the world’s greatest thinkers in the ﬁeld of attachment and trauma informed practice, including: • • • •

•

Dr Cathy Kezelman, the President of Adults Surviving Child Abuse; Deborra-Lee Furness, Patron, Lighthouse Foundation; Patrick Tomlinson, International Trauma Expert. Dr Michael Merzenich, Professor Emeritus of Neuroscience at the University of California; and Professor Patrick McGorry, Executive Director of Orygen Youth

Health Research Centre. In total, 270 delegates from 105 organisations attended the conference, with representation from practitioners, survivors, carers, community services, government, and academic sectors. We look forward to the 2015 edition of this community event that will bring together leading international experts and emerging thinkers in this area to examine what the current research is saying about trauma recovery, what is best practice at an international level, and how we can scale up innovation to reach more people?

LIGHTHOUSE INSTITUTE WOULD LIKE TO THANK OUR COMMUNITY COMMITTEE PARTNERS

WHAT DID YOU TAKE AWAY FROM THE CONFERENCE? “I have continued to think about the different presentations that I attended. Some heart felt, inspiring, occasionally funny and extremely thought provoking.” “Hope! That this small but growing ﬁeld of expertise has a platform for professionals to exchange ideas. I thought that it was a rare thing to have so many accomplished authors and leaders in the ﬁeld in one place, and that they were accessible to everyone there.”

Lighthouse Institute Royal Commission into Institutional Responses to Child Sexual Abuse, Model Expansion in South Australia – SYC, External Training and Consultancy Program ROYAL COMMISSION INTO INSTITUTIONAL RESPONSES TO CHILD SEXUAL ABUSE In January 2013, the Australian Government commissioned an independent inquiry into Institutional Responses to Child Sexual Abuse. The Department of Social Services (formerly FaCHSIA) announced $44 million in funding over three years for services to provide support to individuals and families affected by the Royal Commission. Lighthouse Institute was one of 28 organisations across Australia to receive this funding, and one of four organisations that received the funding speciﬁcally to provide training services. From February to June, Lighthouse Institute trained 1633 participants from 12 different organisations, over 79 sessions across Australia. The following training sessions were offered across Australia: • Preventing Vicarious Trauma in the Workplace • Understanding Grief and Loss • Understanding Complex Trauma • Understanding Psychosocial Development • Understanding and Working with Trauma Based Behaviour • Therapeutic Group Processes

MODEL EXPANSION IN SOUTH AUSTRALIA – SYC

EXTERNAL TRAINING AND CONSULTANCY PROGRAM

Earlier this year, Lighthouse Institute announced a new partnership with SYC and Families SA to deliver residential care. The partnership is the ﬁrst implementation of the Lighthouse Model of Care™ outside of the Lighthouse Foundation.

Lighthouse Institute has provided training and consultancy services to individuals, groups, organisations and communities with a focus on attachment, psychosocial development, trauma, organisational culture and therapeutic community development work.

SYC through HYPA (Helping Young People Achieve), provides a wide range of support to young people in order to help them ﬁnd and harness their talent so they can have a positive future. It has supported many young people since it began in 1958, helping them to access and maintain safe accommodation, reconnect with family, school, employment and the community. SYC Deputy Chief Executive Ofﬁcer, Gerrie Mitra said, “We are pleased to be given the opportunity to provide this proven model of therapeutic care to some of the most vulnerable people in South Australia, and are delighted to be working with Lighthouse Institute in its delivery.” Through this partnership three homes have been opened that will provide support to 12 young people that are currently under the Guardianship of the Minister.

The Institute also provides specialist consultancy to practitioners and organisations that provide support to children, young people, adults and families who may have experienced attachment disruptions and trauma. Our current consultancy work includes model development work, developing attachment and trauma informed organisational systems and clinical supervision. In the last ﬁnancial year, Lighthouse Institute has delivered training and consultancy to over 1000 participants from 18 organisations.

Lighthouse Institute Posit Science, QICSA’s Department of Human Services Standard Accreditation Program, On For Life Database POSIT SCIENCE In October 2013, Lighthouse Institute entered into a partnership with PositScience from California, USA. Co-Founder and Chief Scientiﬁc Ofﬁcer of Posit Science, Dr Michael Merzenich is a neuroscientist and leading pioneer in brain plasticity research. Over the year, he also appeared on Australian television on ABC1’s show Redesign My Brain. Rudy Gonzalez, Lighthouse Institute Executive Director, said, “We welcome this partnership as an exciting opportunity to combine the expertise of Dr Merzenich, who is at the forefront of neuroplasticity research, with the Institute’s expertise in models of trauma-informed best practice. The research into neuroplasticity provided hope that people can recover from severe traumas in their lives, which may have impacted on their brain function.” The partnership between Lighthouse Institute and Posit Science provides the opportunity to apply advances in brain sciences to change the lives of the many young people whose brain development has been impaired due to the impact of trauma. Through the Institute, Posit Science’s brain training programs will be made available to young people across Australia.

QICSA’S DEPARTMENT OF HUMAN SERVICES STANDARD ACCREDITATION PROGRAM As part of Lighthouse’s commitment to continuous quality improvement (CQI), we successfully undertook QICSA’s Department of Human Services (DHS) Standards Accreditation Program. The Accreditation process is underpinned by several central concepts of continuous quality improvement which include: •

•

• •

The organisation’s leaders and management encourage the processes of CQI among individual staff and the organisation as a whole; A range of formal and informal mechanisms are used to evaluate and improve current work practices and staff are directly involved in the reflection on the efficacy of their own work and that of the organisation; Resources are specifically allocated to CQI; Staff and volunteers are actively acknowledged for initiatives they take in improving services and programs.

ON FOR LIFE DATABASE Lighthouse Institute has developed a new database, On for Life, to allow for more holistic recording of young people’s experiences within Lighthouse Model of Care™ The database allows staff to more effectively provide support to the young people in our care and has a reporting function that provides a snapshot of information in real time. The database will provide valuable information about the progress of young people, and will be a useful tool for quality assurance and research purposes. The database now has a dataset of more than 700 young people that have been supported through the Lighthouse Foundation, which demonstrates the effectiveness of the Lighthouse Model of Care™.

LIGHTHOUSE INSTITUTE WOULD LIKE TO THANK OUR KNOWLEDGE PARTNERS

Lighthouse Institute Research and Evaluation How can communities contribute to the wellbeing and life outcomes of Australia’s most vulnerable groups? How can an understanding of trauma improve cross-sectoral work with homeless young people and other at-risk groups? What models and approaches are effective in breaking the cycle of homelessness? What factors lead to better life outcomes for adults and young people leaving out of home care? These are just some of the questions being asked through our research and evaluation program at Lighthouse Institute. Our research and evaluation work develops an evidence base that can assist in improving the wellbeing and life outcomes of children, young people and other vulnerable communities. Through our research expertise, partnerships, and evaluation projects, we are focused on developing a platform of applied research that informs best-practice models for breaking cycles of homelessness, trauma and disadvantage.

The Institute’s research program focuses on the following priority areas: • Youth homelessness, Out of Home Care and Leaving Care • Attachment and trauma informed practice and policy • Child and adolescent mental health • Experiences of therapeutic residential care • Community psychology and ecological models of wellness • Resilience and wellbeing of vulnerable groups Evaluation Projects: Being an outcomes based organisation, Lighthouse Institute is committed to developing evidence informed models of practice and care. These models draw on users’ experiences and therapeutic outcomes as a framework for ensuring that programs are effective, and provide long term, desired results. Some of the evaluation work currently being developed is: • Therapeutic outcomes and longitudinal evaluations of the Lighthouse Model of Care™ • Leaving Care Pathways • Community Wellness outcomes and the role of community mentors in trauma recovery.

Corporate and Philanthropic Supporters

Financial and pro bono support from our corporate and philanthropic partners brings us a step closer to achieving our mission every day.

WE’D ALSO LIKE TO ACKNOWLEDGE:

OUR PHILANTHROPIC SUPPORTERS ARE:

Channel Nine Complete Ofﬁce Supplies Dermatology Institute of Victoria Dun and Bradstreet Epworth Health Figurehead Constructions Herbalife Family Foundation Kalus Kenny Intelex Novotel Septimus Jones and Lee

Anthony and Katherine Stewart Bardas Family Foundation Beck Family Foundation Betty Radford Discretionary Trust Campbell Edwards Trust City of Melbourne Gandel Philanthropy Harold Mitchell Foundation John Higgins Lord Mayor’s Charitable Foundation Lowy Foundation Mona Georgina Harris Trust Newman’s Own Foundation Parncutt Family Foundation Property Industry Foundation Ray and Margaret Wilson Rich Hart Foundation Rotary Club of Brighton Sarina Russo Sidney Myer Fund Skar Foundation Spotlight Charitable Foundation The Isobella Foundation The Michael and Andrew Buxton Foundation The Orgill Family Foundation The Orloff Family Charitable Trust The Tauber Troeth Foundation Timbeck Charitable Trust United Way Ballarat Foundation Vicki Vidor OAM Victor Smorgon Charitable Foundation Victorian Women’s Benevolent Trust Ward-Ambler Foundation William Angliss (Victoria) Charitable Fund Yeast Foundation

Financial section FOR THE YEAR ENDED 30 JUNE 2014 ABN 12 101 549 508

A Financial Snapshot

For detailed Financial Statements please refer to the ﬁnancial section for the year ended 30 June 2014 in the following pages. WHERE OUR FUNDS COME FROM 52% of Lighthouse Foundation revenue is privately funded through fundraising initiatives, including donations, grants and events. Lighthouse Institute funding comprises government funding and partner payments with regard to our expansion plan and also includes revenue associated with our training and consultancy program.

11%

52% 36%

Fundraising

Other income includes government funding for programs in Lighthouse Foundation Homes.

Institute Other

WHERE OUR FUNDS GO Fundraising costs include all costs associated with generating revenue, food and goods. As we are 52% privately funded, fundraising is important in order for our work to continue. Lighthouse Foundation fundraising ratio is less than 10%. Program delivery costs include all costs associated with supporting and delivering our model of care for the beneﬁt of all homeless young people involved in our program.

23%

56%

15%

Lighthouse Institute costs include all costs associated with advocacy, training and expansion of the Lighthouse Model of CareTM. Operational costs cover the day to day running of our work, and include our ﬁnance, administration, and management teams.

Program Delivery Costs Operational Costs Fundraising Costs Institute Costs

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT

The directors present their report together with the financial report of the consolidated entity consisting of Lighthouse Foundation and Lighthouse Foundation Management Pty Ltd, for the year ended 30 June 2014 and auditor's report thereon. This financial report has been prepared in accordance with Australian Accounting Standards. Directors names The names of the directors in office at any time during or since the end of the year are: Susan Barton AM Steve Buxton Bernie Durkin Peter Edwards David Leeton Richard Lloyd William Mountford Vicki Vidor (Resigned 21 November 2013) The directors have been in office since the start of the year to the date of this report unless otherwise stated. Results The surplus of the group for the year amounted to $24,557 (2013: $433,368). Review of operations The group continued to engage in its principal activity, the results of which are disclosed in the attached financial statements. Significant changes in state of affairs During the financial year Lighthouse Foundation established a subsidiary which was incorporated on 25 October 2013. The Lighthouse Foundation Management Pty Ltd is a for profit entity. These financial statements have been prepared on a consolidation basis. There were no other significant changes in the group's state of affairs that occurred during the financial year, other than those referred to elsewhere in this report.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT

Short-term and long-term objectives and strategies To end youth homelessness in Australia by supporting homeless young people to take their rightful place in the community by giving them a home, a family and therapeutic care that is trauma informed, individually tailored and proven to work. Strategies to achieve objectives: • Operate 10 Therapeutic Family Model of Care Homes • Continue operating the Outreach program • Operate the Lighthouse Institute • Deliver Lighthouse Training, Research and Consultancy • Utilize data from Lighthouse's two database systems (On for Life and DonMan) • Establish relationships with potential community services partner organisations in order to expand use of the Lighthouse Model of Care • Measure the therapeutic outcomes of young people using the Therapeutic Outcomes Assessment Tool • Maintain and grow our partnership with the Department of Human Services Victoria • Maintain Quality Improvement & Community Services Accreditation (QICSA)

Principal activities The principal activity of the group during the year was to provide long term accommodation and therapeutic care for disadvantaged young people in Lighthouse live-in and outreach programs. Other activities included the provision of professional development training to other community service organisations, ongoing research and business activity to enable the transfer of the Lighthouse Therapeutic Family Model of Care to other agencies. No significant change in the nature of these activities occurred during the year.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT Company performance and key performance indicators Lighthouse Foundation has achieved the following during the past year of operations: Strategic Objective

Achievement

Ensure ongoing stability and excellence in delivery of the Therapeutic Family Model of Care in 10 homes in Victoria by: Gain re-accreditation by meeting all standards Lighthouse met all standards to achieve under QIP in the areas of care delivery, re-accreditation in December 2013. governance and management processes Developing the Therapeutic Outcome Assessment Tool to measure the therapeutic outcomes of young people participating in Lighthouse programs.

The Therapeutic Outcomes Assessment Tool has been implemented.

Strengthening the organisationâ&#x20AC;&#x2122;s evidence base by implementing the new On For Life Database.

The On For Life database is in operation.

Establish partnerships to license the Therapeutic Family Model of Care across Australia.

Successfully implemented the first TFMC expansion by opening three homes in South Australia in partnership with Services to Youth Council. Established relationships with two further potential partners resulting in letters of intent being signed.

Roll out a national training program funded by Received funding to deliver 176 sessions the Royal Commission into Institutional across Australia over the two year project Responses to Sexual Abuse. period of which 76 were delivered during the financial year. Expand the Lighthouse training and consultancy program.

A 40% increase in training revenue was achieved.

After balance date events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT Likely developments Over the coming year Lighthouse expects to: • Continue to operate its existing Homes and Outreach program in Victoria; • Increase the number of SA homes; • Establish at least 10 further homes in partnership with two additional partners; • Complete the Royal Commission training contract; and • Increase our training and secure an additional large training contract. Environmental regulation The group's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory. Information on directors Susan Barton AM Qualifications

Experience

Richard Lloyd Qualifications Experience

Certificate IV in Youth Work, RMIT; Certificate in Counselling and Psychotherapy; Certificate in Parent Effective Leadership Training, Swinburne TAFE; Certificate IV in Workplace Assessment; Accredited Business School for Entrepreneurs. Susan is the founder of the Lighthouse Foundation and has been a Lighthouse Board member since 1991. Susan has developed the Lighthouse Model of Care for youth at risk, and has had significant experience in caring for young people for over 25 years. Susan is also the co-author of “Build Your Teenager’s Self-Esteem” and co-author of “Therapeutic Residential Care for Children and young people": An Attachment and Trauma Informed Model for Practice”. Susan is currently on the board of MECWA and Patron of Victoria Day Council.

Diploma in Hotel Management and Catering Operations. Managing Director, James Dickson & Co Pty Ltd; Director, National Confectionery Wholesalers Ltd, Statewide Distribution Pty Ltd. Richard has been a Lighthouse Foundation Board Member since 1997, and was Chairperson from 2001 to 2003. He has also served on numerous Lighthouse committees during this time.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT Information on directors (Continued) Bernie Durkin Qualifications Experience

William (Bill) Mountford Qualifications

Experience

Steve Buxton Qualifications Experience

Bachelor of Social Work; Bachelor of Theology Bernie is the General Manager, Regional Counselling Services, Health Promotion and Service Development for EACH – Social and Community Health. He has previous management experience across a number of sectors – Huntingtons disease, Sudden Infant Death Syndrome, homelessness, street-based drug and alcohol work, neighbourhood renewal, victims of crime and problem gambling.

Bachelor of Economics (Hons), Monash University, Masters of Philosophy in Economics, University of Cambridge, Advanced Management Program (AMP), Harvard Business School. Bill has worked as a business strategy consultant for Pappas Carter Evans and Koop (now the Boston Consulting Group), Australian Consulting Partners and Arthur Anderson. He has run state and federal agencies, in particular the Australian Manufacturing Council and Victorian WorkCover Authority. He is a Director of a number of private ventures including, Qualistaff Pty Ltd and Insight Economics Pty Ltd. Bill is also a board member of Melbourne Health and a part time Commissioner of the Victorian Competition and Efficiency Commission.

Bachelor of Business (Monash) Post Grad Degree in Property (RMIT) Steve has been actively involved in the property development and real estate industries since 1990. Steve is currently the Joint Managing Director of Hamton Property Group, a highly acclaimed property developer specialising in Melbourne’s residential apartment and ancillary retail sectors. Prior to Hamton’s establishment in 2006, Steve was the founder of BDP and the co-founder of Red.C, both successful property development companies. Prior to that, Steve had development and sales and marketing roles at MAB Corporation and sales and leasing roles in both residential and commercial real estate firms.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT Information on directors (Continued) Vicki Vidor Experience

Peter Edwards Experience

David Leeton Qualifications Experience

Vicki Vidor is a Company Director of The Victor Smorgon Group and Co-Founder of Fouress Foundation. Vicki was first elected to the Lighthouse Board in 1994 and was Chair of the Board in 2007 and 2008. During her time with Lighthouse, Vicki has served on numerous committees with Lighthouse Foundation and is the Patron of the Vicki Vidor Home for Young Mothers and Babies. Vicki was elected a Life Member of Lighthouse Foundation in 2010 in recognition of her outstanding contribution to Lighthouse Foundation over many years.

Peter is Managing Director of the Victor Smorgon Group. The Groupâ&#x20AC;&#x2122;s ventures include Property, Consumer Retail, Recycling & Renewable Manufacturing, and Sustainable Agriculture. Peter is a Trustee of the National Gallery of Victoria and the Julian Burton Burns Trust. He is a board member of SECUREcorp Pty Ltd and Chairman of the Jewish Museum of Australia Foundation.

B.Bus (Bkg & Fin); GradDip Acc; CPA member David is the CFO for the Victor Smorgon group. David is directly responsible for the financial reporting, financing, equities management and treasury for the group. David is actively involved in all facets of the business. David sits on a number of Victor Smorgon foundation boards and is actively involved in The Philanthropic Investor Club.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT Meetings of directors Directors

Directors' meetings Number eligible to attend

Susan Barton AM Steve Buxton Bernie Durkin Peter Edwards David Leeton Richard Lloyd Bill Mountford Vicki Vidor

11 11 11 11 11 11 11 5

Number attended

11 7 7 8 10 8 11 1

Members guarantee The parent entity is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the parent entity is wound up, the Constitution states that each member undertakes to contribute an amount not more than $100 to the property of the company if it is wound up while he or she is a member or within one year after he or she ceases to be a member, for: (a) payment of the company's debts and liabilities contracted before the time he or she ceases to be a member (b) the costs, charges and expenses of winding up; and (c) the adjustment of the rights of the contributories among themselves. Indemnification of officers During or since the end of the year, the group has given indemnity or entered an agreement to indemnify, or paid or agreed to pay insurance premiums as follows: During the year the company has paid a premium in respect of an insurance contract to indemnify the directors of the company against liabilities that may arise from their position as directors of the company Indemnification of auditors No indemnities have been given or insurance premiums paid, during or since the end of the year, for any person who is or has been an auditor of the group. Auditor's independence declaration A copy of the auditor's independence declaration under division 60-40 of the Australian Charities and Not for profits Commission Act 2012 in relation to the audit for the financial year is provided with this report.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' REPORT Proceedings on behalf of the group No person has applied for leave of Court to bring proceedings on behalf of the group or intervene in any proceedings to which the group is a party for the purpose of taking responsibility on behalf of the group for all or any part of those proceedings.

Signed on behalf of the Board of Directors.

Director: Peter Edwards

Director: David Leeton Dated this 29th day of October 2014

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF LIGHTHOUSE FOUNDATION

In relation to the independent audit for the year ended 30 June 2014, to the best of my knowledge and belief there have been: (i)

No contraventions of the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012; and

(ii) No contraventions of any applicable code of professional conduct.

K L BYRNE

PITCHER PARTNERS

Partner

Melbourne

Date: 10 November 2014

-9An independent Victorian Partnership ABN 27 975 255 196 Liability limited by a scheme approved under Professional Standards Legislation

Melbourne

Sydney

Pitcher Partners is an association of independent firms | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014 Note

Revenue Less: expenses Depreciation and amortisation expense Employee benefits expense Finance costs Office expenses External labour expenses House running expenses Event costs Other expenses

Surplus from continuing operations

2013 $

4,271,538

3,825,420

(85,822) (3,082,938) (7,937) (181,281) (146,923) (365,226) (96,138) (280,705) (4,246,970)

(68,002) (2,362,113) (29,623) (152,362) (217,437) (269,329) (143,347) (149,839) (3,392,052)

Surplus before income tax expense Income tax expense

2014 $

24,568 1(c) ,5

(11)

433,368

24,557

433,368

The accompanying notes form part of these financial statements. 44

24,557

Other comprehensive income for the year Total comprehensive income

433,368

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014 Note

Current assets Cash and cash equivalents Receivables Other assets

6 7 8

2014 $

2013 $

943,947 85,166 30,703

1,532,788 55,424 18,908

1,059,816

1,607,120

5,301,762

4,638,392

Total non-current assets

5,301,762

4,638,392

Total assets

6,361,578

6,245,512

165,115 910,852 229,478 11 415,905

153,735 860,954 148,051 571,230

1,721,361

1,733,970

141,475 42,648

49,642 30,363

184,123

80,005

Total liabilities

1,905,484

1,813,975

Net assets

4,456,094

4,431,537

4,456,094

4,431,537

4,456,094

4,431,537

Total current assets Non-current assets Property, plant and equipment

Current liabilities Payables Borrowings Provisions Current tax liabilities Other liabilities

10 11 12 5 13

Total current liabilities Non-current liabilities Borrowings Provisions

11 12

Total non-current liabilities

Equity Accumulated surplus Total equity

The accompanying notes form part of these financial statements. 45

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014 Accumulate d surplus $

Total equity $

3,998,169

Surplus for the year

433,368

Total comprehensive income for the year

433,368

Balance as at 30 June 2013

4,431,537

Balance as at 1 July 2013

4,431,537

Surplus for the year

24,557

Total comprehensive income for the year

24,557

4,456,094

Consolidated Balance as at 1 July 2012

Balance as at 30 June 2014

The accompanying notes form part of these financial statements. 46

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014 Note

Cash flow from operating activities Donation, fundraising and boarding income received Payments to suppliers and employees Interest received Finance costs

2014 $

2013 $

3,890,613 (4,474,506) 24,890 (2,322)

4,534,288 (3,539,995) 1,101 (18,128)

(561,325)

977,266

4,368 (168,000)

22,458 (68,698)

(163,632)

(46,240)

Cash flow from financing activities Payments of hire purchase finance charges Proceeds of borrowings

(5,615) 141,731

(11,495) 32,259

Net cash provided by financing activities

136,116

20,764

1,532,788 (588,841)

580,998 951,790

Net cash provided by / (used in) operating activities Cash flow from investing activities Proceeds from sale of property, plant and equipment Payment for property, plant and equipment

Net cash used in investing activities

Reconciliation of cash Cash at beginning of the financial year Net increase / (decrease) in cash held Cash at end of financial year

943,947

1,532,788

The accompanying notes form part of these financial statements. 47

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Australian Charities and Not for profits Commission Act 2012. The financial report was approved by the directors as at the date of the directors' report. The financial report is for the entity Lighthouse Foundation as an individual entity and Lighthouse Foundation and its consolidated entity. Lighthouse Foundation is a foundation limited by guarantee, incorporated and domiciled in Australia. Lighthouse Foundation is a not-for-profit entity for the purpose of preparing the financial statements. Lighthouse Foundation Management Pty Ltd is a for profit entity for the purpose of preparing the financial statements. The following is a summary of the material accounting policies adopted by the group in the preparation and presentation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. (a) Basis of preparation of the financial report Historical Cost Convention The financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets as described in the accounting policies. (b) Revenue Revenue from the rendering of services is recognised upon the delivery of the service to the customers. Income arising from donations or the contribution of an asset to the entity shall be recognised when: a) the entity obtains control of the contribution or the right to receive the donation/contribution; b) it is probable that the economic benefits comprising the donation/contribution will flow to the entity; and c) the amount of the donation/contribution can be measured reliably. Interest revenue is recognised when it becomes receivable on a proportional basis taking in to account the interest rates applicable to the financial assets. Other revenue is recognised when the right to receive the revenue has been established. Revenue from trust distributions is recognised when the right to receive a distribution has been established.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (b) Revenue (Continued) Revenue from grants is recognised when, and only when, all the following conditions have been satisfied: a) the entity obtains control of the grant income or the right to receive the income b) it is probable that the economic benefits comprising the contribution will flow to the entity; and c) the amount of the grant income can be measured reliably All revenue is stated net of the amount of goods and services tax (GST). (c) Income tax No provision for income tax has been raised for Lighthouse Foundation as the parent entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997. The wholly owned subsidiary of Lighthouse Foundation, Lighthouse Foundation Management Pty Ltd, is a taxable entity and has a current tax liability of $11 as at 30 June 2014. Current income tax expense or revenue is the tax payable on the current period's taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognised for temporary differences at the applicable tax rates when the assets are expected to be recovered or liabilities are settled. No deferred tax asset or liability is recognised in relation to temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. (d) Financial instruments Classification The group classifies its financial assets into the following categories: financial assets at fair value through profit and loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depends on the purpose for which the instruments were acquired. Management determines the classification of its financial instruments at initial recognition. Non-derivative financial instruments Non-derivative financial instruments consist of investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative financial instruments are initially recognised at fair value, plus directly attributable transaction costs (if any), except for instruments recorded at fair value through profit and loss. After initial recognition, non-derivative financial instruments are measured as described below.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (d)

Financial instruments (Continued)

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are measured at fair value at inception and subsequently at amortised cost using the effective interest rate method. Non-interest bearing loans and receivables are designated as receivable 'at call' and are therefore recognised at their face value at inception. Financial liabilities Financial liabilities include trade payables, other creditors and loans from third parties including inter-company balances and loans from or other amounts due to director-related entities. Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Non-interest bearing loans and payables are payable on demand and are therefore recognised at their face value at inception. Financial liabilities are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. (e) Property, plant and equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and any accumulated impairment losses. Plant and equipment Plant and equipment is measured on a cost basis. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to present values in determining recoverable amounts.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (e)

Property, plant and equipment (Continued)

Depreciation The depreciable amount of all fixed assets is depreciated over their estimated useful lives commencing from the time the asset is held ready for use. Land and the land component of any class of fixed asset is not depreciated. Class of fixed asset Buildings at cost Plant and equipment at cost Motor vehicles at cost Motor vehicles under lease Furniture, fixtures and fittings at cost Computer equipment at cost

Depreciation rates 1 - 2.5% 18.75 - 37.5% 15 - 22.5% 15% 7.5 - 37.5% 37.5 - 40%

Depreciation basis Straight line and Diminishing value Diminishing value Diminishing value Straight line Straight line and Diminishing value Diminishing value

(f) Impairment of non-financial assets Assets with an indefinite useful life are not amortised but are tested annually for impairment in accordance with AASB 136. Assets subject to annual depreciation or amortisation are reviewed for impairment whenever events or circumstances arise that indicate that the carrying amount of the asset may be impaired. An impairment loss is recognised where the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset is defined as the higher of its fair value less costs to sell and value in use. (g) Leases Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership. Finance leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the group are classified as finance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. The interest expense is calculated using the interest rate implicit in the lease and is included in finance costs in the consolidated statement of comprehensive income. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the group will obtain ownership of the asset, or over the term of the lease. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (g)

Leases (Continued)

Operating leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as an expense on a straight-line basis over the term of the lease. Lease incentives received under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. (h) Borrowing costs Borrowing costs include interest, amortisation of discounts or premiums relating to borrowings, ancillary costs incurred in connection with arrangement of borrowings, include trade creditors and lease finance charges. Borrowing costs are expensed as incurred. (i) Employee benefits (i) Short-term employee benefit obligations Liabilities arising in respect of wages and salaries, annual leave and any other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. The expected cost of short-term employee benefits in the form of compensated absences such as annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are presented as payables. (ii) Long-term employee benefit obligations Liabilities arising in respect of long service leave and annual leave which is not expected to be settled within twelve months of the reporting date are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to the reporting date. Employee benefit obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur. (j) Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 $ NOTE 2: REVENUE AND OTHER INCOME Fundraising Interest income Donations Licence fees Board and lodgings Trust distributions Training and conference Government grants

2013 $

264,605 24,890 1,442,253 260,000 109,762 984,716 218,025 967,287 4,271,538

368,969 1,101 1,024,847 95,626 1,906,773 69,882 358,222 3,825,420

2,322 5,615 7,937

18,128 11,495 29,623

85,822 6,700

68,002 -

4,726

937

258,505 23,912 282,417

251,954 22,676 274,630

NOTE 3: OPERATING SURPLUS Surplus before income tax has been determined after: Expenses: Finance costs Interest paid Finance lease charges Depreciation Bad and doubtful debts Net loss on disposal of non-current assets - Loss on sale of property, plant and equipment NOTE 4: KEY MANAGEMENT PERSONNEL COMPENSATION Compensation received by key management personnel of the group - short-term employee benefits - post-employment benefits

The names of directors who have held office during the year are: Name Susan Barton AM Steve Buxton Bernie Durkin Peter Edwards

Appointment / resignation details

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 4: KEY MANAGEMENT PERSONNEL COMPENSATION (CONTINUED) David Leeton Richard Lloyd William Mountford Vicki Vidor (Resigned 21 November 2013) The names of key management personnel during the year are: Name Kane Bowden Susan Barton AM

Position Chief Executive Officer Director/ Founder 2014 $

2013 $

NOTE 5: INCOME TAX (a) Components of tax expense Current tax

11 11

893 493,054 450,000 943,947

1,164 531,624 1,000,000 1,532,788

50,259 34,907 85,166

32,752 22,672 55,424

(b) Prima facie tax payable The prima facie tax payable on profit before income tax is reconciled to the income tax expense as follows: Prima facie income tax payable on profit before income tax at 30.0% (2013: 30.0%) Income tax expense attributable to profit NOTE 6: CASH AND CASH EQUIVALENTS Cash on hand Cash at bank Cash on deposit

NOTE 7: RECEIVABLES CURRENT Trade debtors Other receivables

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 $

2013 $

NOTE 8: OTHER ASSETS CURRENT Prepayments

30,703

18,908

5,394,069 (331,055) 5,063,014

4,785,330 (278,564) 4,506,766

56,651 (44,430) 12,221

56,651 (40,776) 15,875

Motor vehicles at cost Accumulated depreciation

333,567 (143,836) 189,731

266,369 (164,471) 101,898

Motor vehicles under lease Accumulated depreciation

23,732 (23,732) -

Furniture, fixtures and fittings at cost Accumulated depreciation

115,934 (93,142) 22,792

92,403 (88,708) 3,695

175,409 (161,405) 14,004 238,748 5,301,762

164,760 (154,602) 10,158 131,626 4,638,392

NOTE 9: PROPERTY, PLANT AND EQUIPMENT Land and buildings At cost Accumulated depreciation

Plant and equipment Plant and equipment at cost Accumulated depreciation

Computer equipment at cost Accumulated depreciation Total plant and equipment Total property, plant and equipment

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 $

2013 $

NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED) (a) Reconciliations Reconciliation of the carrying amounts of property, plant and equipment at the beginning and end of the current financial year

Land and buildings Opening carrying amount Additions Disposals Depreciation expense Closing carrying amount

4,506,766 612,440 (3,390) (52,802) 5,063,014

4,533,761 11,100 (38,095) 4,506,766

Plant and equipment Opening carrying amount Depreciation expense Closing carrying amount

15,875 (3,654) 12,221

21,722 (5,847) 15,875

Motor vehicles Opening carrying amount Additions Disposals Depreciation expense Closing carrying amount

101,898 111,666 (5,703) (18,130) 189,731

82,581 57,598 (23,395) (14,886) 101,898

Furniture, fixtures and fittings Opening carrying amount Additions Depreciation expense Closing carrying amount

3,695 23,530 (4,433) 22,792

6,124 (2,429) 3,695

Computer equipment Opening carrying amount Additions Depreciation expense Closing carrying amount

10,158 10,650 (6,804) 14,004

16,903 (6,745) 10,158

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 $

2013 $

NOTE 9: PROPERTY, PLANT AND EQUIPMENT (CONTINUED) (a) Reconciliations (Continued) Total property, plant and equipment Carrying amount at 1 July Additions Disposals Depreciation expense Carrying amount at 30 June

4,638,392 758,286 (9,094) (85,822) 5,301,762

4,661,091 68,698 (23,395) (68,002) 4,638,392

90,582 74,533 165,115

104,323 49,412 153,735

400,000 480,963 29,889 910,852

367,883 480,963 12,108 860,954

141,475

49,642

NOTE 10: PAYABLES CURRENT Unsecured liabilities Trade creditors Sundry creditors and accruals

NOTE 11: BORROWINGS CURRENT Secured liabilities Bank loans Loans - other Hire purchase liability

(a) (b)

NON CURRENT Secured liabilities Hire purchase liability

(a) Terms and conditions and assets pledging as security relating to the above financial instruments Borrowings are secured by : (a) Registered mortgage over the property at Springvale. (b) Registered mortgage over the property at East Malvern. (c) Registered mortgage over the property at Ballarat.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 2014 $

2013 $

NOTE 11: BORROWINGS (CONTINUED) (b) Loans - other These loans relate to funds loaned to Lighthouse Foundation from various Charitable foundations to purchase the Frankston, Heathmont and Boronia homes. The loans are on an interest free basis and have been classified as current liabilities in accordance with AASB101 Presentation of Financial Statements as Lighthouse Foundation does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. These loans are secured by loan agreements with the Charitable foundations, whereby if Lighthouse Foundation breaches the agreements the loans will become repayable. Despite being classified as current liabilities, the directors of Lighthouse Foundation have reasonable grounds to believe that these loans will not be called upon by the lenders within the next 12 months. NOTE 12: PROVISIONS CURRENT Employee benefits

(a)

229,478

148,051

NON CURRENT Employee benefits

(a)

42,648

30,363

272,126

178,414

415,905

571,230

4,431,537 24,557 4,456,094

3,998,169 433,368 4,431,537

(a) Aggregate employee benefits liability NOTE 13: OTHER LIABILITIES CURRENT Deferred income NOTE 14: ACCUMULATED SURPLUS Accumulated surplus at beginning of year Surplus / (deficit) for the year Accumulated surplus at end of year

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 15: RELATED PARTY TRANSACTIONS (a) Related party transactions The names of each person holding the position of Director of Lighthouse Foundation during the financial year have been disclosed in Note 4. Details of directors remuneration, superannuation and retirement payments are set out in Note 4. On 30 August 2013 the consolidated entity entered into a rental agreement with a director related party to provide subsidised outreach accommodation for a young person for a year. Total payments as at 30 June 2014 were $21,730 with a remaining $4,346 to be paid subsequent to year end. NOTE 16: CONTINGENT LIABILITIES Under the Department of Human Services (DHS) funding agreement for the purchase of various properties, if a property is sold within 15 years of the grant funding being provided some or all of the original grant amount may be repayable. Subject to these funding agreements the DHS has registered mortgages over the following properties: (a) Springvale (b) East Malvern (c) Frankston (d) Chelsea (e) Clayton (f) Heathmont (g) Boronia Directors have no present intention to sell any of these properties.

NOTE 17: COMMITMENTS Operating leases Minimum lease payments - not later than one year - later than one year and not later than five years Aggregate lease expenditure contracted for at reporting date

3,237 -

3,237 3,237 -

These commitments represent payments due for leased photocopier under non-cancellable operating leases.

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 18: MEMBERS' GUARANTEE The parent entity is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the parent entity is wound up, the Constitution states that each member undertakes to contribute an amount not more than $100 to the property of the company if it is wound up while he or she is a member or within one year after he or she ceases to be a member, for: (a) Payment of the company's debts and liabilities contracted before the time he or she ceases to be a member; (b) The costs, charges and expenses of winding up; and (c) The adjustment of the rights of the contributories among themselves. NOTE 19: ENTITY DETAILS The registered office of the group is: Lighthouse Foundation 13 Adolph Street Richmond VIC 3121

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 DIRECTORS' DECLARATION

The directors of the foundation declare that: 1.

The financial statements and notes, as set out on pages 44 - 60, are in accordance with the Australian Charities and Not for profits Commission Act 2012: and (a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not for profits Commission Regulation 2013; and (b) give a true and fair view of the financial position of the consolidated entity as at 30 June 2014 and its performance for the year ended on that date.

In the directors' opinion there are reasonable grounds to believe that the foundation 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 Board of Directors.

Director: Peter Edwards

Director: David Leeton

Dated this 29th day of October 2014

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE FOUNDATION

We have audited the accompanying financial report of Lighthouse Foundation and controlled entity, which comprises the consolidated statement of financial position as at 30 June 2014, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration of the consolidated entity comprising the company and the entity it controlled at the year's end or from time to time during the financial year. Directors' Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards â&#x20AC;&#x201C; Reduced Disclosure Requirements and the Australian Charities and Not for profits Commission Act 2012, and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and 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 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 about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement in the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company'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 company's internal control. 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 Australian Charities and Not for profits Commission Act 2012.

- 28 An independent Victorian Partnership ABN 27 975 255 196 Liability limited by a scheme approved under Professional Standards Legislation

Melbourne

Sydney

Pitcher Partners is an association of independent firms | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

LIGHTHOUSE FOUNDATION AND CONTROLLED ENTITIES ABN 12 101 549 508 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE FOUNDATION

Opinion In our opinion, the financial report of Lighthouse Foundation is in accordance with the Australian Charities and Not for profits Commission Act 2012, including: (a) giving a true and fair view of the consolidated entity's financial position as at 30 June 2014 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not for profits Commission Regulations 2013.

K L BYRNE

PITCHER PARTNERS

Partner

Melbourne

Date: 10 November 2014

- 29 An independent Victorian Partnership ABN 27 975 255 196 Liability limited by a scheme approved under Professional Standards Legislation

Melbourne

Sydney

Pitcher Partners is an association of independent firms | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

Ending youth homelessness in Australia, working together with the community.

13 Adolph St, Richmond VIC 3121 P. 03 9093 7500 F. 03 9093 7555 ofďŹ ce@lighthousefoundation.org.au www.lighthousefoundation.org.au