Lighthouse Foundation Annual Report 2012 13 by lighthousefoundation

Lighthouse Foundation Annual ReporT

Lighthouse Foundation Annual RePORT July 2012 – June 2013 ABN 12 101 549 508

July 2012 – June 2013

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

Design studioinc.net.au / Photography SharmaRose and Michelle Tran / Printing BGS Printing

CONTENTS 5 Our Founder’s Message - Susan Barton AM 6 Our Chair’s Message - Peter Edwards 8 Our CEO’s Message - Kane Bowden 11 Our Lighthouse Live-In Care Program 12 Our Care Team 14 Our Story - Ladisha 17 Our Community - Volunteers 18 Our Community - Committees 21 Our Highlights 22 Our Philanthropic Relationships 23 Our Corporate Relationships 24 Our Lighthouse Institute 25 Our Knowledge Partners 26 Our Lighthouse Institute 29 Our Young People’s Words of Courage 30 Our Financial Snapshot

Financial report 33 Directors’ Report 41 Statement of comprehensive income 42 Statement of financial position 43 Statement of changes in equity 44 Statement of cash flows 45 Notes to financial statements 57 Directors’ declaration 58 Independent auditor’s report

Our Founder’s Message Susan Barton AM I find it remarkable that from the smallest, hopeful beginnings, we are now in the position to recommit to our vision to end youth homelessness by working together with community partners, and to have the confidence to set out a bold agenda for the growth for our organisation. In a year of highlights, we saw our team grow, and an increased number of young people being supported. We now can look back with pride at over 700 young people who have had their lives significantly enhanced by Lighthouse’s programs. Importantly, we are encouraged to see government increasingly coming on board as supportive partners, endorsing Therapeutic Care as a best practice method of supporting traumatised homeless young people. As the first residents of Lighthouse now are in their 40s, we can clearly see the fulfillment of the aim that they would establish their own families, and go on to lead stable lives of contribution through work and maintaining healthy relationships. It is also especially rewarding to see so many of our young people coming back to train as carers themselves and to go on to complete formal qualifications in Youth Work.

It is especially rewarding to see so many of our young people coming back to train as carers themselves and to go on to complete formal qualifications in Youth Work.

Many of our loyal community partners, volunteers, supporters and friends have been with us since the very beginning back in 1991. Together we have seen the original vision of Lighthouse expand to now include the Lighthouse Institute, the training and research arm of the Foundation. In the past year, under the capable direction of Rudy Gonzalez, the Institute has grown its innovative research capability and expanded its comprehensive schedule of national trainings and workshops. Now the Institute is preparing to host its first international conference, which will attract as keynote speakers, the world’s most highly regarded experts in trauma recovery and brain plasticity. Lighthouse Institute will continue to develop in the years ahead, bringing about a series of partnerships with other organisations that will greatly multiply the extended reach of Lighthouse’s Therapeutic Family Model of Care™. Our dedicated team of Lighthouse carers continues to immerse our young people in the warmth of a loving family, with special attention to their individual needs in health, education, and rebuilding relationships of trust. We are proud of the courage and resilience of these young people as they re-launch their lives from a safe and stable home base. We thank each and every one of you who has made this possible. Susan x

OUR Board Directors during 2012 - 2013: Susan Barton AM Bernie Bicknell (resigned November 2012) Martin Bull (resigned March 2013) Steve Buxton Bernie Durkin Peter Edwards David Leeton Richard Lloyd Bill Mountford Vicki Vidor OAM Therese (Terrie) Barton, Company Secretary

Our Chair’s Message Peter Edwards I am honoured to be writing to you as Chairman of Lighthouse in this, the 22nd dynamic year for the organisation. I would like to acknowledge my predecessor, Bernie Bicknell, and thank him not only for his service to Lighthouse, but also his vision and drive in mapping the ground work for all that has ensued this past year. Through the expansion of the Lighthouse Foundation, Lighthouse has taken significant steps towards achieving its mission of ending youth homelessness; by increasing the number of homes and placements available for young people and with the formal establishment of the Lighthouse Institute. This leverages and broadens the reach of the Lighthouse Therapeutic Family Model of Care™, and in doing so, we have created an important training organisation devoted to making available what we have learned at the Lighthouse Foundation to other organisations operating in the community. I would like to formally acknowledge all of the members of the Lighthouse community for the achievements realised this past year and to say thank you in advance for their efforts in the year to come. I also thank the Australian Government, which has provided substantial support for the establishment of the Lighthouse Institute and the many other loyal supporters who have made the progress of the Lighthouse Foundation and Lighthouse Institute possible. We especially acknowledge the patronage of Mrs Elizabeth Chernov; Lighthouse Patrons and Ambassadors continue to provide leadership and public advocacy that draws attention to our mission to end youth homelessness. We really do appreciate their energy and commitment. The Lighthouse team remains passionate about achieving its mission, and the aim is to keep operating and promoting the Lighthouse Therapeutic Family Model of Care™, to bring about the best outcomes for our most precious resource, young people.

Patrons

These achievements could not have happened without the dedicated team of people who are ‘Lighthouse’.

Mrs Elizabeth Chernov Beverley Brock Max Walker Brian Burdekin Michael Crawford Deborra-Lee Furness Clive Lloyd

Our CEO’s Message Kane Bowden Lighthouse Foundation has been operating successfully for 22 years. In that time, Lighthouse has tested, tweaked and proven, with strong evidentiary data, a model of care that has broken the cycle of homelessness for over 700 young people, returning them to their rightful place in the community. This is a source of great pride for our staff and volunteers, our Board, our major benefactors and supporters and of course our founder Susan Barton AM. Susan’s love drove her to take young people into her own home over 30 years ago. Now the organisation she set up has ensured that hundreds of young people have left homelessness behind forever. This success has resulted in the consolidation of our partnership with the Victorian Government to support the young people in our care. We anticipate that this partnership will grow over coming years. I am very pleased to report that in May, Lighthouse signed an agreement with the Australian Government to expand the Lighthouse Therapeutic Family Model of Care™ nationally. A $500,000 grant has been provided to Lighthouse to assist in systemising best practices in care for homeless young Australians and allow for the expansion of the successful Lighthouse Therapeutic Family Model of Care™. The Australian Government’s funding will enable an expansion of Lighthouse’s model in partnership with other non-profit organisations which will directly assist many more additional homeless youth. Over the past year, the Property Industry Foundation and Australand have been building our new home in Bonbeach. South East Water funded an upgrade to our Frankston home. The Sidney Myer Fund, Harold Mitchell Foundation, Gandel Philanthropy, Victor Smorgon Charitable Foundation, Beck Family Foundation and Lowy Foundation joined with the Skar Foundation, Spotlight Foundation and John Higgins as major supporters and benefactors of Lighthouse. Cabrini Health and Porsche Cars Australia renewed their annual sponsorships of our Richmond and Springvale Homes respectively. Minter Ellison and Pitcher Partners provided us with another year of first class pro bono support and the Campbell Edwards Trust and Vicki Vidor OAM continued their unwavering support of our Clayton and Heathmont Homes. To them and all of you who support us in large and small ways, we are eternally grateful. We thank our Life Member, Vicki Vidor OAM especially for her inspirational support throughout the year and we are delighted Mrs Elizabeth Chernov has chosen to join us in becoming a patron of Lighthouse. I take this opportunity to say farewell and thank you to Bernie Bicknell. Bernie was a Lighthouse Director from 2007 and chaired the Lighthouse Board from 2009 to 2012. Bernie’s outstanding leadership through a critical period in the organisation’s history leaves a lasting legacy. The future is very bright for our organisation and the young people we serve. The hard work of our staff and volunteers over the last twelve months has been extraordinary to witness and I thank them for it. Inevitably, there will be more challenges ahead. I count myself fortunate indeed to lead a group of people who mutually support each other and work positively towards our shared goals. I am in no doubt that these qualities will hold us in good stead over the next 12 months.

The growing support from government and other organisations and our recently established Institute is something we are very proud of. This validation has strengthened our resolve to play a leading role in ending youth homelessness.

Our Lighthouse Live-In Care Program Lighthouse Foundation operates ten homes in Victoria, with a further two homes under development. The Therapeutic Family Model of Care™ has been operating successfully for 22 years. Lighthouse Foundation now has a partnership with government to support 10% of the young people in our care. 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 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.

The Therapeutic Family Model of Care™ also has highly respected psychologists who on a regular basis, weekly, fortnightly or at least monthly, 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 work together with each young person to slowly assist them to lead autonomous and fulfilling lives as adults. Using the Therapeutic Outcomes Assessment Tool™, Lighthouse Foundation is able to measure the changes made 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 that 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.

Our Care Team

Our Care team has supported 55 young people through the Lighthouse residential program this year. An important part of the process is the intake procedure. Referrals of individuals, who have been homeless or who are at risk of homelessness, come from a variety of sources including case workers and outreach workers. It is also not unusual for young homeless people themselves to approach Lighthouse after hearing about the program from others they have met in emergency refuges and shelters. Potential candidates for places in one of the Lighthouse homes are carefully screened and introduced to the Carers and potential future housemates, ensuring there is a high likelihood that bonds of attachment and connection will be formed. This year, the Outreach program continued to directly assist 65 additional young people from the home base of our Youth Resource and Administration Centre in Richmond, providing an open door policy for support services. Help is available whenever the office is open, or 24/7 by phone. Lighthouse young people who have transitioned to independent living often continue a close relationship with members of the Care team and pop into the office for a chat. Additionally, other young people are assisted through the Outreach program via contacts outside the Youth Resource Centre. There has also been a growing relationship with the Department of Human Services, who this year placed three young people into Lighthouse homes. Of these three, two are still in our care, and one has now transitioned into sustainable independent living. There has been a full program of Lighthouse community events which involve young people in the Outreach program as well as those in the residential program. There are great outcomes for relationship building when the family home groups mingle and share activities in a relaxed social atmosphere.

Our Care Services Relationships EVENT HIGHLIGHTS

• October: Halloween party • December: Sovereign Hill day • Christmas: Wonderful gifts, celebrations, and backpacks filled with essentials for the Outreach program’s young people.

Partnerships with other organisations continue to be a growing focus of Lighthouse’s work. These include planning and implementing a continuum of care connections with organisations such as the Salvation Army St Kilda Crisis Centre. We continue to seek and build drug and alcohol, mental health and crisis accommodation collaborative partnerships which provide the best outcomes for the young people in our care.

• March: AMF Bowling fun

As part of the process of continuous staff development, Team Synergy, as a pro bono support commitment, introduced a twelve month Leadership program for selected Lighthouse team members. Several Carers and Care team staff have been taking part in the process which matches each participant with an internal leader as a mentor.

• April: Family Events Community Family Meeting and Lighthouse team in Street Soccer event at Ballarat.

A pilot program has been introduced to provide an arrangement with a property developer for a social housing scheme. Planning and selection of a suitable young person who is transitioning to independence has begun. The Frankston home has also been used as low cost social housing whilst awaiting renovations.

• May: The George Awards Supported by Dessie Kontis, in memory of her father George, this is a much loved yearly event. Young people were acknowledged for exceptional progress and courage.

The transition of a new pay award for Carers was implemented throughout 2012 and 2013. A feature of this year’s activities was the addition of resources funded by the HEY Grant, under the direction of experienced Lighthouse Carer, Rei Alphonso. Rei provided consultation to carers and care staff. We also had the benefit of Shades of Queer (SoQ) social support for our young people. Planning is now underway to deliver Rainbow workshops and printed resource material.

• June: Arts and crafts day • June: Circus Oz • Young People’s Newsletter Four seasonal editions • Friday Afternoon Teas All are welcome each Friday at 4pm. Birthdays and landmarks are celebrated as a community. • Friday Group Trips St Kilda Sea Baths

Our Story Ladisha Seventeen year old Ladisha came to Lighthouse after a period of homelessness in which she moved around various emergency shelters and refuges, and slept in a car with a friend. She found herself alone after her single mother, who had complex mental health issues and drug addictions, moved in with a new partner. Ladisha, who had endured abuse for a long time within her own home, wasnâ&#x20AC;&#x2122;t welcome in the new living arrangement. Lighthouse provided a secure and safe family home in which Ladisha could rest and recover, and get some medical attention for her health issues. With unhappy past school experiences, and very low confidence, she was reluctant to return to school, and after several months, and several attempts at re-entering school, her Lighthouse Carer then focused on assisting her into beginning a TAFE training course which will qualify her to gain work in Aged Care. Now almost 19, Ladisha is taking longer than the usual time to complete her training certificate, and she will need a great deal of further support to gain her qualification. She is shining in the hands-on work placement elements, but is struggling with the written assignments, and in the demands of meeting time commitments. There are many positives to her situation, as she is gradually learning to manage the routines of getting herself to and from her study, and she is taking better care of herself. For Ladisha, coming into the Lighthouse program has enabled her to get the psychological counselling she needed, in order to deal with the traumas of her past. Her future is looking hopeful, and her Lighthouse Carers will be there beside her, helping her make each step towards the life she deserves. (Name changed to protect identity).

Today, over 700 young people can call Lighthouse home. This story reminds us that the journey to recovery can take time.

Our Community Volunteers Corporate Volunteering We are humbled by the continual generosity of individuals and corporate groups who contribute their time and expertise so willingly to help Lighthouse advance. Only by working closely with the community, can we achieve our mission of ending youth homelessness in Australia together. This year, more than a dozen organisations shared their employees with Lighthouse, enabling them to participate in working bees, gift wrapping days, packing of boxes of Project 21 card sets, packing backpacks with toiletries for the Outreach programâ&#x20AC;&#x2122;s young people and working as ambassadors or service staff at events. The Property Industry Foundation (PIF), together with building group Australand and their combined suppliers and networks, provided a large number of volunteer groups who began work on building the new Lighthouse home at Bonbeach. Our great supporters at PIF also provided packages of winter woollies midyear and toiletry packs as festive gifts in December.

We are grateful to all our volunteers who work so hard in the office, in Outreach, aT the homes, at our events, providing professional pro-bono services and essential needs.

Other remarkable individuals who supported our work in the office, particularly in administration and data entry included Kim Encel, Barbora Williams, Agnieszka Payne and Debbie Ferraro. The Lighthouse Internship and Placement Program benefited from contributions from Christopher Stegley, Christie Byrne, Catherine Keating, Annette Krastins, Ebonee Loquancio and Paz Ramirez who gave generously of their time and skills. Several school groups worked on fundraising projects, providing much hope for the next generation of Lighthouse volunteers. Other third party fundraising efforts included an inspiring group of runners who completed the City to Sea run in November, and special event support from Danielle Schofield. A group of dedicated volunteers also came together to produce an outstanding event, Next Melbourne, held at MARS Gallery South Melbourne. The event drew content from a range of the arts and highlighted young peopleâ&#x20AC;&#x2122;s talents.

Our Community Committees CLAYTON celebrated the George Awards for young people, sponsored by Dessie Kontis in memory of her father. Many other successful events also included a 90 person Greek Dinner at Spitiko and Bunnings sausage sizzles. RICHMOND committee enjoyed a decadent Food and Wine night at Hobba and a trivia night at the Mount View Hotel. A partnership with the East Malvern committee resulted in a fantastic night watching Angels in America on stage and two successful movie nights. CHELTENHAM succeeded again in holding an impressive Golf Day at the Royal Melbourne Golf Course, with great support from RedZed, Matt Finnis and Tim Watson. A rewarding relationship was built with Donovan’s restaurant in St Kilda to use the back garden beds to grow fresh produce. EAST MALVERN welcomed Catherine Green as the new chairperson. They invited us to kick goals and eat gourmet pies with Luke Ball and Dane Swan at their Footy Clinic, play a round of golf at the MGI Golf Day, sip Cocktails for a Cause with Justin Madden at William Angliss and see movies at Como. SPRINGVALE benefited from Porsche’s active participation and Paul Ellis’ leadership. A sell-out trivia night was held at Sentido Funf, with prizes including two Grand Prix tickets in the Porsche Skybox. Barefoot Bowls, and a Gala Dinner in Chinatown (with 150 attendees) continued the fundraising success. KENSINGTON started the year with an original fundraising idea; bikram yoga, where the heat rises up to 40 degrees. They also hosted movie nights to 007 Skyfall and The Great Gatsby. BALLARAT welcomed four outstanding new members to the committee and benefited from the support of the Timbeck Charitable Trust and other grants. Funds were also raised at North Ballarat Football Club, Springfest, a Trivia night, Trots night and Market Sunday. HEATHMONT conducted the ‘Share The Love’ Valentines lunch, with Sam Stynes as guest speaker, as well as the Winter Wonderland Dinner Dance. The Vicki Vidor Home for Mothers and Babies was able to re-kit the equipment and supplies needed by the new group of young mums. GREENVALE focused on hands-on working bees and arranging individual gifts and support for the young people in residence. The Beyond The Bounce Football Lunch at the MCG also contributed to supporting the home. BORONIA hit off the year with a benefit gig in Brunswick featuring Pack Bears, Texal Rising and The Moxie, amongst others. Movie nights included Crazy Stupid Love and 007 Skyfall.

Our committees are made up of dedicated and passionate individuals who together become the extended family of our young people, providing them with love, support and resources to ensure that their lighthouse home is a home in every sense of the word.

Our Highlights

Property Industry Foundation One of Lighthouse Foundation’s most significant supporters is the Property Industry Foundation (PIF). Their generous corporate donors and major industry supporters give annual donations and make significant contributions of time, expertise and materials towards projects which assist homeless youth.

Australand Building group, Australand, was asked by PIF to build a brand new, six bedroom home in Bonbeach Victoria and construction commenced in February 2012, with completion expected in December 2013. The PIF Lighthouse will provide a warm and caring home that will enrich the lives of a group of young homeless people, providing a safe place to live while they receive the nurturing therapeutic care they need for recovery and relaunching their lives.

In a year of tremendous growth, we welcomed Mrs Elizabeth Chernov as our newest Patron. PIF and Australand also commenced building our next home.

PROJECT 21 A special highlight of the past year of celebration was the creation of the Project 21 cards as a heart-felt artistic collaboration led by our Life Member, Vicki Vidor, and graphic designer, Philippa Demase. This boxed sets of 21 cards, created by top design companies - Tin & Ed, Paper Stone Scissors, 3 Deep and Ortolan combined inspirational quotes, clever images, and education about the issues faced by Australia’s young homeless people and how we, as a community, can respond meaningfully. As a lasting artifact, the Project 21 cards are now being sold and distributed throughout the Lighthouse network, providing a shot of joy and inspiration everywhere they land.

Our PatRon, Mrs Elisabeth Chernov Lighthouse Foundation is proud to announce that Mrs Elisabeth Chernov is our new Patron. In an announcement at Government House on June 13th 2013, Mrs Chernov, together with The Honourable Alex Chernov AC QC, Governor of Victoria, welcomed Lighthouse Chairman, Peter Edwards, Founder, Susan Barton AM, and CEO Kane Bowden. We appreciate Mrs Chernov’s support and look forward to developing a close relationship over the years ahead.

Lighthouse Foundation acknowledges the support of the Victorian Government. Lighthouse Foundation acknowledges the Australian Government funding for Royal Commission Support Services and funding to promulgate the Lighthouse Therapeutic Family Model of Care™.

Our Philanthropic Relationships All Souls Opportunity Shop Beck Family Foundation Beecher Family Foundation Besen Family Foundation Campbell Edwards Trust City of Kingston City of Stonnington Collier Charitable Fund Department of Education, Employment and Workplace Relations Dessie Kontis Department of Human Services Victoria Diana Gibson Frank and Flora Leith Charitable Trust Gandel Philanthropy Harold Mitchell Foundation Isobella Foundation Jack and Ethel Goldin Foundation Jeff Martin JHK Brunner Charitable Trust Lord Mayorâ&#x20AC;&#x2122;s Charitable Foundation Lowy Foundation Matana Foundation May and Stanley Smith Trust Michael Crawford International Fan Club Michael and Andrew Buxton Foundation Mona Georgina Harris Perpetual Trust Orloff Family Charitable Trust Parncutt Family Foundation PIA KIDS Inc Property Industry Foundation Ray and Margaret Wilson Foundation Roslyn Rogers Rotary Club of Canterbury Scanlon Foundation Sidney Myer Fund Skar Foundation

Our Corporate Relationships Spotlight Charitable Foundation Tauber-Troeth Foundation The Ballarat Foundation Timbeck Charitable Trust Tony and Kitty Stewart Vicki Vidor OAM Victor Smorgon Charitable Foundation Ward-Ambler Foundation William Angliss Charitable Fund Wolf Foundation Woodlands Golf Club Ladies Charity Yeast Foundation Youth Affairs Council of Victoria: HEY Grant Youth In Philanthropy: Lord Mayorâ&#x20AC;&#x2122;s Charitable Foundation

Our philanthropic supporters continue to be incredibly generous supporters of our mission to end youth homelessness in Australia.

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

Clemenger Staff Fund Electrical Home Aids GDF Suez Energy Australia

Jester Amusements Message Media Project Management (Aust)

Septimus Jones and Lee TEBA The Good Guys Foundation

Our Lighthouse Institute Lighthouse Institute provides training and specialist consultancy services to practitioners and organisations and conducts research that contributes to the development of best practice models. It was established in 2011 to provide training and specialist services to organisations, clinicians and practitioners who work with children, adults and families that have been affected by trauma. Since 2011, Lighthouse Institute has worked with over 30 organisations across Australia. Some of the organisations we have supported include OzChild, Hanover Welfare Services, the Centre for Excellence in Child and Family Welfare, Integrated Family and Youth Service and Service to Youth Council. The Australian Red Cross contracted the Institute to provide consultancy and supervision of 120 of their specialist staff who deal with recently settled migrants and refugees. We are building a partnership with the Australian Government to provide training to organisations supporting individuals and families affected by the Royal Commission into Institutional Responses to Child Sexual Abuse. In 2014, Lighthouse Institute will provide 176 training sessions across every State and Territory in Australia. Lighthouse Institute has developed a partnership with University of Melbourne and Orygen Youth Health Research Centre to conduct research into best practice models for children, youth and families affected by trauma, as well as youth homelessness.

Research

A ground-breaking new research project was implemented as a linchpin of the second stage of the development of the Institute. This will provide valuable data capture of young people’s development throughout their time at Lighthouse and onwards into their future. In this longitudinal study, evidence will be gathered which enhances our community’s understanding of the effects of trauma on young people’s development and how recovery occurs over time.

Presentations

Executive Director of the Institute, Rudy Gonzalez, presented at the Australasian Conference of Child Trauma at the Gold Coast in 4-6 July 2012. Rudy and Susan Barton also presented via live video conference at the University of Riverside Global Conference for Psychology Professionals in 19-20 October 2012.

Our Knowledge Partners In its second year of operation, the Lighthouse Institute fulfilled its brief to operate as an influential Centre of Knowledge in the field of trauma informed practice and therapeutic care.

Overseas TOUR Stiftung Leuchtfeuer, which translates to “Lighthouse Foundation,” is the name of a German organisation that provides holistic care to children and young people. This year, Stiftung Leuchtfeuer celebrated its 10th Anniversary of operating in Germany and Estonia. Director Peer Salstroem-Leyh invited Rudy and Susan to join in their celebrations in Cologne (Germany). To make the most of their trip overseas, our Lighthouse ambassadors travelled through the UK, visiting leaders in therapeutic work with children and young people including Mulberry Bush Community and Childhood First. This trip marked the first overseas trip designed specifically to share the Lighthouse Therapeutic Family Model of Care™ internationally, and to develop a significant partnership with well-respected European organisations.

SUPERVISION Program for Red Cross We provided over 50 sessions of clinical group supervision to more than 120 practitioners working in the Red Cross Migration Support Program, including Community Assistance Support Program, the Asylum Seekers Assistance Scheme, and the Community Detention Support Program.

Orygen Youth Health Research Centre The Lighthouse Institute was delighted to announce Orygen Youth Health (OYH) Research Centre/Centre for Youth Mental Health, University of Melbourne as our major research partner. The OYH Research Centre is Australia’s largest youth mental health research centre. Professor Patrick McGorry, the executive director of OYH Research Centre, commented on the partnership saying that, “The partnership gives us the chance to tackle preventatively some of the drivers of mental ill health in young people and to create an evidence base for healing cultures, environments and relationships.” Rudy Gonzalez, Executive Director of the Lighthouse Institute, stated that, “the partnership provides the Institute with a key alliance that is driven to improve outcomes for traumatised young people across Australia and internationally.”

Improving the Quality of Therapeutic Care with RMIT In partnership with RMIT University, the Institute delivered the first Diploma of Youth Work (Therapeutic Care) which focused specifically on attachment and trauma informed practice in the out of home sector. Twelve students took part in the Diploma, engaging in face to face and on-the-job learning.

Our Lighthouse Institute Innovations in Clinical Supervision: Psychodynamic Clinical Supervision Training In March 2013, Lighthouse Institute ran the first Psychodynamics of Supervision training for all members of the Lighthouse Psychological Wellness Team and Institute Clinical Consultants. The program received positive reviews from all participants. The training, developed by Rudy Gonzalez and Patrick Tomlinson, was based on extensive research into best practice supervision models from around the world, and their practice experience spanning over 30 years.

Therapeutic Outcomes Assessment™ The Therapeutic Outcomes Assessment™ (TOA™) tool was developed by the Lighthouse Institute to measure outcomes for Children and Young People living in the Lighthouse Therapeutic Family Model of Care™. The tool has wide applicability to a range of care settings. The TOA™ provides an individual and their clinical care team with vital information about the outcomes achieved over a period of time, or over the course of engagement in a program. Appropriate use of this tool enables an individual and their clinical care team to develop a care plan around the developmental needs of the individual. It also provides necessary feedback about the effectiveness of the program in which the individual is engaged, which guides program evaluation and development. The TOA™ is comprised of a survey measuring the following eight developmental areas: 1 D

4 5

1. 2. 3. 4. 5. 6. 7. 8.

Learning Physical Development Emotional Development Attachment Identity Social Development Autonomy/Life Skills Relational/Community Connectedness

Preparation for the Journey to Recovery Conference

The Institute team began planning for the International Conference of Attachment and Trauma Informed Practice. Journey to Recovery will be a collaborative initiative that provides practitioners, policy makers, researchers, carers and survivors of trauma an opportunity to come together, to share experiences and reflect on practice and research into recovery-oriented approaches from an attachment and trauma informed perspective. The Conference comes at a pivotal time, where Attachment and Trauma Informed Practice is increasingly seen as best practice in work with survivors of trauma, across diverse sectors including mental health, homelessness, out of home care, disability, aged care, torture and trauma, indigenous issues, health, refugee and asylum seekers and education. The Conference is an opportunity to reflect on questions of the past, the current possibilities, and the next steps in the field of Attachment and Trauma Informed Practice. This cross-sectoral conference will be held on the 13th and 14th of August 2013 at the Melbourne Cricket Ground, in Melbourne Australia.

Our Young People’s Words of Courage “I feel now that I have the courage to tell you this… I really love you and want you to know that you were the turning point in my life, truly.” “Dianne, thank you for your support and our endless chats. you are amazing. You made my struggles seem fixable and I can’t thank you enough.” “You gave me shelter but most importantly you made me feel safe.”

“Now I am in my own place, I think back at how lonely and angry I was when I first found Lighthouse. I have friends now, and the very first friends I could trust were my Lighthouse family”.

“Lighthouse turned out to be more than just a house, it turned out to be a home.”

“I thought kids would be bludging and hanging around. When I moved in though I was surprised to see everyone had a purpose. I saw other young people going to school and holding down jobs. It motivated me and now I’m about to finish year 10.” “I have dreams. I have a passion. I have a real sense of direction for my life and the way I want it to go.” “I used to not belong. I wasn’t part of anything. I was really on my own. But when I came to Lighthouse they made me feel like I was part of a family. Somebody cared about what happened to me. That took me a while to know for sure. I really want to thank everyone for how they stuck by me.” “I care if there’s a mess. I want it to look good, cos’ I live here.” “I’m engaged to my beautiful fiancé and have running around at my ankles, an amazing little girl, Olivia. I’m studying a Cert IV in Aged Care now and I love it!! After many years without clear direction or purpose I think I have finally found my niche. If it weren’t for your compassion, love and genuine care for me, I wouldn’t be in this position today.”

Our Financial Snapshot For detailed Financial Statements and Treasurer’s Report, please refer to the FINANCIAL SECTION FOR THE YEAR ENDED 30 JUNE 2013. Expenditure 2012/13 financial year

Institute Costs 19% House Costs 44% (including Carers’ salaries and all direct running costs)

Operational Costs 17%

House Costs 44% Care Services Costs 20% Operational Costs 17% Institute Costs 19%

Care Services Costs 20% (including programs, counselling, outreach & support)

Fundraising 6% Other Income 12%

Institute Donations 28%

Fundraising (Events and Activities 6% Corporate 9%

Corporate 9% General Donations 16% Philanthropic Trusts 29% Institute Donations 28%

General Donations 16%

Philanthropic Trusts 29%

Other Income 12%

The majority of Lighthouse monies is spent on costs associated with the direct running of the Lighthouse Homes and care of Young People. Salaries of carers and care support staff are the largest cost of these categories and are essential for the delivery of the Therapeutic Family Model of Care™. The Lighthouse Institute operated for a full year. Institute costs relate to the project to expand the use of the Lighthouse Model of Care in Australia.

Income 2012/13 financial year

Lighthouse Foundation receives income from several main sources, the largest being Donations. Income from General Donations, Institute Donations and Philanthropic Trusts accounted for three quarters of total income and Fundraising accounted for 6% with strong support of several events and activities and dedicated Community Committees. Corporate funding also remained strong.

Directorsâ&#x20AC;&#x2122; Report

LIGHTHOUSE FOUNDATION ABN 12 101 549 508 DIRECTORS' REPORT

The directors present their report together with the financial report of Lighthouse Foundation for the year ended 30 June 2013 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 Richard Lloyd Bernie Durkin Bernie Bicknell (Resigned 15 November 2012) Martin Bull (Resigned 21 March 2013)

FINANCIAL SECTION FOR THE YEAR ENDED 30 JUNE 2013 ABN 12 101 549 508

Steve Buxton Vicki Vidor OAM Peter Edwards David Leeton William Mountford (Appointed 20 June 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 company for the year amounted to $433,368.

Review of operations The company continued to engage in its principal activity, the results of which are disclosed in the attached financial statements.

Significant changes in state of affairs There were no significant changes in the company's state of affairs that occurred during the financial year, other than those referred to elsewhere in this report.

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LIGHTHOUSE FOUNDATION ABN 12 101 549 508

DIRECTORS' REPORT

Company objectives

After balance date events

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.

Subsequent to the end of the financial year, Lighthouse was successful in a tender to provide trauma informed training to organisations providing counselling to victims of child abuse. Funding of $600,000 was received in August 2013 and a further $300,000 will be received next year to undertake this project.

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 • Improve Lighthouseʼs two database systems (On For Life and DonMan) • Develop Lighthouseʼs Communications Function • Establish relationships with potential community services partner organisations in order to expand use of the Lighthouse Model of Care • Implement the Therapeutic Outcomes Assessment Tool to measure therapeutic outcomes of young people • Formalise our relationship with the Department of Human Services Victoria • Receive Quality Improvement & Community Services Accreditation (QICSA)

No other 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.

Principal activities The principal activity of the company 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 community service organisations and preparatory work to transfer the Lighthouse Therapeutic Family Model of Care to other agencies.

Likely developments Lighthouse expects to continue to operate its existing Homes and Outreach program; develop further sites at which it will operate Lighthouse programs for homeless young people; deliver a national training project; commence a detailed research agenda; refine its services to provide improved continuous care, family connection and employment opportunities to young people; and establish a cluster of 5 homes in partnership with another community services organisation.

Environmental regulation The company'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

No significant change in the nature of these activities occurred during the year.

Company performance

Lighthouse Foundation has achieved the following during the past year of operations: • Secured significant philanthropic support for expansion • Received significant federal funding for expansion • Increased the number of young people in our care • Developed partnerships with several other agencies • Increased external training and consultancy • Established service agreement with the Department of Human Services Victoria • Improved communications capability • QICSA and HASS accreditation retained • Achieved operating surplus

-234

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 Teenagerʼs 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, National Distribution (SA) Pty 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.

-335

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

DIRECTORS' REPORT

Information on directors (Continued)

Bernie Durkin Qualifications Experience

Steve Buxton Qualifications

Bernie Bicknell Qualifications Experience

Martin Bull 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.

Prior to Hamtonʼs 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.

CPA, GAICD Bernie Bicknell has worked in senior business roles in Australia, New Zealand and U.S.A. These include Chief Financial Officer at I.C.I. Paints North America and Chief Executive Officer at Mitre 10. Bernie is a CPA and is currently the Chief Operating Officer with Godfreys Group of companies. Bernie was also the founding Chair of The Pines Lighthouse Community Committee that has supported the Lighthouse home in Cheltenham since 2002.

Vicki Vidor OAM Experience

CA - Financial Planning Specialist CPA, CFP Martin is Director and Principal of Bull Garth Financial Services, a firm of Specialist Financial Advisers. Martin is a chartered accountant and a certified financial planner and has been advising clients in taxation planning, wealth accumulation and financial advising for over 25 years. Martin was also a founding member of the Pines Lighthouse Community Committee that has supported the Lighthouse home in Cheltenham, since 2002.

Peter Edwards Experience

-436

Experience

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 Melbourneʼs residential apartment and ancillary retail sectors.

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 Groupʼs 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.

-537

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

DIRECTORS' REPORT

Information on directors (Continued)

Members guarantee

David Leeton Qualifications Experience

B.Bus (Bkg & Fin); GradDip Acc; CPA member David joined the Victor Smorgon Group in 1997 and was promoted to the position of Chief Financial Officer in 2002. David is directly responsible for the financial reporting, financing and treasury for the group. David sits on the investment board and is actively involved in all facets of the business. David is a Trustee of the Victor Smorgon Charitable Fund, a director of the Victor Smorgon Scholarship Fund trustee company, secretary for the Trustee of the Fouress Foundation, the Victor Smorgon Institute at Epworth and The Philanthropic Investor Club. David is the secretary of all Victor Smorgon Group entities.

William (Bill) Mountford Qualifications Experience

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.

Indemnification of officers During or since the end of the year, the company 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. Further disclosure required under section 300(9) of the Corporations Act 2001 is prohibited under the terms of the contract.

Auditor's independence declaration A copy of the auditor's independence declaration under section 307C of the Corporations Act 2001 in relation to the audit for the financial year is provided with this report.

Proceedings on behalf of the company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings.

Signed on behalf of the Board of Directors.

Meetings of directors Directors

Directors' meetings Number eligible to Number attended attend

Susan Barton AM Richard Lloyd Bernie Durkin Bernie Bicknell Martin Bull Steve Buxton Vicki Vidor OAM Peter Edwards David Leeton William Mountford

11 11 11 5 8 11 11 11 11 0

-638

(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.

10 9 9 5 5 11 8 11 10 0

Director:

Director: Dated this

Peter Edwards

David Leeton 28th day of October

2013

-739

Statement of comprehensive income

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

LIGHTHOUSE FOUNDATION ABN 12 101 549 508 LIGHTHOUSE FOUNDATION ABN 12 101 549 508 AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF LIGHTHOUSE FOUNDATION AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF LIGHTHOUSE FOUNDATION In relation to the independent audit for the year ended 30 June 2013, to the best of my knowledge and belief there havetobeen: In relation the independent audit for the year ended 30 June 2013, to the best of my knowledge and belief there have been:

(i) (i)

No contraventions of the auditor independence requirements of the Corporations Act 2001; and No contraventions of the auditor independence requirements of the Corporations Act 2001; and (ii) No contraventions of any applicable code of professional conduct. (ii) No contraventions of any applicable code of professional conduct.

K L BYRNE K L BYRNE Partner Partner Date: Date:

An independent Victorian Partnership ABN 27 975 255 196

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

Income tax expense

Other comprehensive income for the year Total comprehensive income

-8-8-

2013 $

2012 $

3,825,420

3,105,796

(68,002) (2,365,113) (29,623) (203,745) (237,231) (175,564) (143,347) (169,427) (3,392,052)

(81,919) (1,960,621) (33,884) (214,558) (210,614) (172,854) (162,163) (175,111) (3,011,724)

433,368

94,072

433,368

94,072

433,368

94,072

Surplus before income tax expense Surplus from continuing operations

30 October 2013 30 October 2013

An independent Victorian Partnership ABN 27 975 255 196

PITCHER PARTNERS PITCHER PARTNERS Melbourne Melbourne

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2013

1(c)

The accompanying notes form part of these financial statements. -941

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

LIGHTHOUSE FOUNDATION ABN 12 101 549 508 STATEMENT OF CHANGES IN EQUITY Statement of changes in equity FOR THE YEAR ENDED 30 JUNE 2013

STATEMENT OF FINANCIAL POSITION

Statement of financial positionAS AT 30 JUNE 2013

Note

Current assets Cash and cash equivalents Receivables Other assets Total current assets

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

5 6 7

Total assets

1,532,788 55,424 18,908 1,607,120

Total current liabilities Non-current liabilities Borrowings Provisions

Total non-current liabilities

9 10 11 12

10 11

Total liabilities Net assets

Equity Accumulated surplus

580,998 30,339 11,102 622,439

4,638,392

4,661,091

4,638,392

4,661,091

6,245,512

5,283,530

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

77,768 878,337 132,471 165,112

1,733,970

1,253,688

49,642 30,363

31,673

80,005

31,673

1,813,975

1,285,361

4,431,537

3,998,169

4,431,537

3,998,169

4,431,537

3,998,169

The accompanying notes form part of these financial statements. - 10 42

2012 $

Accumulated surplus $

Total equity $

3,904,097

94,072

Balance as at 30 June 2012

3,998,169

Balance as at 1 July 2012

3,998,169

433,368

4,431,537

Balance as at 1 July 2011 Surplus for the year

Total comprehensive income for the year

Surplus for the year

Total comprehensive income for the year

Balance as at 30 June 2013

Current liabilities Payables Borrowings Provisions Other liabilities

Total equity

2013 $

The accompanying notes form part of these financial statements. - 11 43

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

Statement of cash flows

LIGHTHOUSE FOUNDATION ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2013

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013 Note

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

Net cash provided by 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

Cash flow from financing activities Payments of hire purchase finance charges Proceeds/(Repayment) of borrowings

Net cash provided by / (used in) financing activities

2012 $

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

3,574,837 (3,175,459) 1,052 (21,501)

977,266

378,929

22,458 (68,698)

(17,521)

(46,240)

(17,521)

(11,495) 32,259

(12,383) (14,704)

20,764

Reconciliation of cash Cash at beginning of the financial year Net increase in cash held Cash at end of financial year

2013 $

(27,087)

580,998 951,790

246,677 334,321

1,532,788

580,998

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 Corporations Act 2001. 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. Lighthouse Foundation is a company limited by guarantee, incorporated and domiciled in Australia. Lighthouse Foundation is a not-for-profit entity for the purpose of preparing the financial statements. The following is a summary of the material accounting policies adopted by the company 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. 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).

The accompanying notes form part of these financial statements. - 12 44

- 13 45

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(e) Property, plant and equipment

No provision for income tax has been raised as the company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

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.

(d) Financial instruments

Plant and equipment

Classification

Plant and equipment is measured on a cost basis.

The company 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.

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.

Non-derivative financial instruments

Depreciation

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.

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.

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. 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.

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 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.

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.

- 14 46

- 15 47

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(g) Leases

(i) Borrowing costs

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.

Borrowing costs can include interest, amortisation of discounts or premiums relating to borrowings, ancillary costs incurred in connection with arrangement of borrowings, including trade creditors and lease finance charges.

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 company 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 statement of comprehensive income. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the company 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. 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.

Borrowing costs are expensed as incurred. (j) Comparatives Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures. 2013 $

NOTE 2: REVENUE Fundraising Interest income Donations Board and lodgings Trust distributions Government grants

(h) 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.

- 16 48

2012 $

368,969 1,101 1,094,729 95,626 1,906,773 358,222 3,825,420

559,191 1,052 1,872,932 124,860 437,440 110,321 3,105,796

18,128 11,495 29,623

21,501 12,383 33,884

68,002

81,919

937

NOTE 3: OPERATING SURPLUS Surplus before income tax has been determined after: Expenses: Finance costs Interest paid Finance lease charges Depreciation Net loss on disposal of non-current assets - Loss on sale of property, plant and equipment

- 17 49

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 2013 $

NOTE 4: KEY MANAGEMENT PERSONNEL COMPENSATION Compensation received by key management personnel of the company - short-term employee benefits - post-employment benefits

2012 $

251,954 22,676 274,630

193,850 17,177 211,027

CURRENT Prepayments

18,908

11,102

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

4,774,130 (240,369) 4,533,761

56,651 (40,776) 15,875

56,651 (34,929) 21,722

Motor vehicles at cost Accumulated depreciation

266,369 (164,471) 101,898

265,600 (183,019) 82,581

Motor vehicles under lease Accumulated depreciation

23,732 (23,732) -

Furniture, fixtures and fittings at cost Accumulated depreciation

92,403 (88,708) 3,695

92,403 (86,279) 6,124

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

164,760 (147,857) 16,903 127,330 4,661,091

NOTE 8: PROPERTY, PLANT AND EQUIPMENT

Appointment / resignation details

Land and buildings At cost Accumulated depreciation

(Resigned 15 November 2012) (Resigned 21 March 2013)

Plant and equipment Plant and equipment at cost Accumulated depreciation

(Appointed 20 June 2013)

The names of key management personnel during the year are: Name Kane Bowden Susan Barton AM

Position Chief Executive Officer Director/ Founder

NOTE 5: CASH AND CASH EQUIVALENTS Cash on hand Cash at bank Cash on deposit

2012 $

NOTE 7: OTHER ASSETS

The names of directors who have held office during the year are: Name Susan Barton AM Richard Lloyd Bernie Durkin Bernie Bicknell Martin Bull Steve Buxton Vicki Vidor OAM Peter Edwards David Leeton William Mountford

2013 $

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

1,461 579,537 580,998

32,752 22,672 55,424

8,315 22,024 30,339

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

NOTE 6: RECEIVABLES CURRENT Trade debtors Other receivables

- 18 50

- 19 51

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 2013 $

2013 $

NOTE 8: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

(a) Reconciliations

(a) Reconciliations (Continued)

Reconciliation of the carrying amounts of property, plant and equipment at the beginning and end of the current financial year

Total property, plant and equipment Carrying amount at 1 July Additions Disposals Depreciation expense Carrying amount at 30 June

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

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

Plant and equipment Opening carrying amount Additions Depreciation expense Closing carrying amount

21,722 (5,847) 15,875

4,554,579 15,008 (35,826) 4,533,761

31,146 1,022 (10,446) 21,722

2012 $

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

4,725,489 17,521 (81,919) 4,661,091

104,323 49,412 153,735

30,878 46,890 77,768

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

367,883 480,963 29,491 878,337

49,642

NOTE 9: PAYABLES CURRENT Unsecured liabilities Trade creditors Sundry creditors and accruals

NOTE 10: BORROWINGS

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

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

100,598 (18,017) 82,581

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

6,124 (2,429) 3,695

9,729 1,491 (5,096) 6,124

Computer equipment Opening carrying amount Depreciation expense Closing carrying amount

16,903 (6,745) 10,158

29,437 (12,534) 16,903

- 20 52

2012 $

CURRENT Secured liabilities Bank loans Loans - other Hire purchase liability 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.

- 21 53

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 2013 $

2012 $

NOTE 10: BORROWINGS (CONTINUED)

(a) Related party transactions

(b) Loans - other

The names of each person holding the position of Director of Lighthouse Foundation during the financial year have been disclosed in Note 4.

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 11: PROVISIONS CURRENT Employee benefits

(a)

148,051

132,471

NON CURRENT Employee benefits

(a)

30,363

31,673

178,414

164,144

(a) Aggregate employee benefits liability

Details of directors remuneration, superannuation and retirement payments are set out in Note 4.

NOTE 15: 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 16: MEMBERS' GUARANTEE

NOTE 12: OTHER LIABILITIES CURRENT Deferred income NOTE 13: ACCUMULATED SURPLUS Accumulated surplus at beginning of year Surplus / (deficit) for the year Accumulated surplus at end of year

- 22 54

NOTE 14: RELATED PARTY TRANSACTIONS

571,230

165,112

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

3,904,097 94,072 3,998,169

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company 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.

- 23 55

LIGHTHOUSE FOUNDATION ABN 12 101 549 508 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

LIGHTHOUSE FOUNDATION ABN 12 101 549 508

Directorsâ&#x20AC;&#x2122; declaration

DIRECTORS' DECLARATION

The directors of the company declare that:

NOTE 17: COMPANY DETAILS

The registered office of the company is: Lighthouse Foundation

The financial statements and notes, as set out on pages 9 - 24, 4156, are in accordance with the Corporations Act 2001: and (a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001; and

13 Adolph Street Richmond VIC 3121

(b) give a true and fair view of the financial position as at 30 June 2013 and performance for the year ended on that date of the company. 2.

In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director:

Dated this

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Peter Edwards

David Leeton 28th day of October

2013

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

Independent auditor’s report

We have audited the accompanying financial report of Lighthouse Foundation, which comprises the statement of financial position as at 30 June 2013, statement ofFoundation, comprehensive statement of We have audited the accompanying financial reportthe of Lighthouse whichincome, comprises the changes in equity and statement of cash flows for the year then ended, notes comprising a summary of statement of financial position as at 30 June 2013, the statement of comprehensive income, statement of significant andofother and the directors' declaration. changes inaccounting equity and policies statement cash explanatory flows for theinformation, year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

Directors' Responsibility for the Financial Report 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 in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Theview directors of the company are responsible for the preparation of the financial report that gives a true and Corporations Act 2001, with and for such internal controlStandards as the directors determine is necessary to enable fair view in accordance Australian Accounting – Reduced Disclosure Requirements andthe the preparation ofAct the2001, financial thatinternal gives acontrol true and and is free fromismaterial misstatement, Corporations andreport for such as fair the view directors determine necessary to enable the whether dueoftothe fraud or error. preparation financial report that gives a true and fair view and is free from material misstatement,

Opinion Opinion In our opinion, the financial report of Lighthouse Foundation is in accordance with the Corporations Act 2001, including: In our opinion, the financial report of Lighthouse Foundation is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company's financial position as at 30 June 2013 and of its for the that date;financial and (a) performance giving a true and fairyear viewended of the on company's position as at 30 June 2013 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Regulations (b) Corporations complying with Australian 2001. Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

whether due to fraud or error.

Auditor's Responsibility Auditor's Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance withisAustralian Standards. Those standards require thataudit. we comply with relevant Our responsibility to expressAuditing an opinion on the financial report based on our We conducted our audit ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable in accordance with Australian Auditing Standards. Those standards require that we comply with relevant assurance about whether theto financial report is freeand fromplan material misstatement. ethical requirements relating audit engagements and perform the audit to obtain reasonable

assurance about whether theprocedures financial report is freeaudit fromevidence material about misstatement. An audit involves performing to obtain the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including thedisclosures assessment An audit involves performing procedures to obtain audit evidence about the amounts and in of thethe risks of material misstatement in the financial report, whether due to fraud or error. In making those risk financial report. The procedures selected depend on the auditor's judgement, including the assessment of the assessments, the auditor considers theto company's preparation of the financial risks of material misstatement in theinternal financialcontrol report,relevant whethertodue fraud or error. In making those risk report that gives a true and fair view in order to design audit procedures that are appropriate in the assessments, the auditor considers internal control relevant to the company's preparation of the financial circumstances, not and for the of expressing opinion on the effectiveness of the company's report that givesbut a true fairpurpose view in order to designanaudit procedures that are appropriate in the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's reasonableness of accounting estimates made by the directors, as well as evaluating the overall internal control. An audit also includes evaluating the appropriateness of accounting policies usedpresentation and the of the financial report. reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation

K L BYRNE K L BYRNE Partner Partner Date: Date:

PITCHER PARTNERS PITCHER PARTNERS Melbourne Melbourne

30 October 2013 30 October 2013

of financial Wethe believe thatreport. the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

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- 26 An independent Victorian Partnership ABN 27 975 255 196 An independent Victorian Partnership ABN 27 975 255 196

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An independent Victorian Partnership ABN 27 975 255 196 An independent Victorian Partnership ABN 27 975 255 196

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Together we can end youth homelessness in Australia. 13 Adolph St, Richmond VIC 3121 P. 03 9093 7500 F. 03 9093 7555 office@lighthousefoundation.org.au www.lighthousefoundation.org.au