2006-2007 Financial Report by Dianne Ballestrin

WE SEE WE HEAR WE HELP 2006-2007 FINANCIAL REPORT

CONTENTS 2 3 5 6 7 38 39

Income Statement Balance Sheet Statement in changes in equity Cash Flow Statement Notes to the Financial Statements Statement by State Council Auditorâ&#x20AC;&#x2122;s Report

2 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Income Statement FOR THE YEAR ENDED 30 JUNE 2007

Note

CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

6,417,317

5,766,370

5,800,821

REVENUE Fundraising

3 (a)

Government Grants

3 (b)

17,368,125

19,057,839

287,429

1,644,873

Sale of Goods

3 (c)

17,624,855

16,236,499 16,585,171

15,212,555

Other Revenue

3 (d)

7,653,183

6,658,501

1,072,166

869,398

Changes in Value of Investment

3 (e)

7,542

5,765

7,542

5,765

48,375,921 23,718,678

23,533,412

TOTAL REVENUE

6,772,869

49,426,574

OTHER INCOME Net Gain on Sale of Property, Plant and Equipment

3 (f)

20,304

Cost of Sales

4 (a)

(11,547,447)

Fundraising/Public Relations

4 (b)

(760,733)

Administration

4 (c)

869,275

27,385

921,994

(10,667,585) (9,865,753)

(9,090,658)

OPERATING EXPENSES

(2,794,277) (15,102,457)

TOTAL FUNDS AVAILABLE FOR CLIENT ACTIVITIES

34,344,420

(656,462)

(760,733)

(656,462)

(3,065,529) (2,794,277)

(3,065,529)

(14,389,576) (13,420,763) (12,812,649) 34,855,620 10,325,300

11,642,757

(7,203,456) (7,270,449)

(7,239,939)

CLIENT SERVICES EXPENSES People in Need Services

4 (d)

(7,257,754)

Aged Care Services

4 (e)

(13,469,512)

(12,953,499)

Homelessness & Housing Services

4 (f)

(8,120,568)

(7,798,384)

Support Services

4 (g)

TOTAL EXPENSES SURPLUS FOR THE PERIOD

The accompanying notes form part of these financial statements.

(2,225,752)

(2,243,462) (2,225,752)

(2,243,462)

(31,073,586)

(30,198,801) (9,496,201)

(9,483,401)

(46,176,043)

(44,588,377) (22,916,964) (22,296,050)

3,270,835

4,656,819

829,099

2,159,356

2006-2007 Financial Report • 3

WE SEE... WE HEAR... WE HELP Balance Sheet AS AT 30 JUNE 2007

Note

CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

CURRENT ASSETS Cash and cash equivalents

10,101,449

20,161,336

4,072,228

9,440,889

Trade and other receivables

1,020,938

2,056,680

557,905

1,607,916

Inventories

117,783

183,060

97,190

154,927

Financial assets

21,053,600

13,026,978

8,053,600

2,026,978

414,192

Other assets

TOTAL CURRENT ASSETS

512,958

270,259

33,026,954

733,184

35,842,246 13,293,881

13,500,969

57,790,859

53,084,588 21,272,509

21,609,310

- 51,805,739

50,859,829

NON-CURRENT ASSETS Property, plant & equipment Financial assets Intangibles

11 9

14,119,095

14,139,561

60,287

56,913

71,909,954

67,224,149 73,138,535

72,526,052

104,936,908

103,066,395 86,432,416

86,027,021

TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables

1,774,237

Provisions

Other liabilities

TOTAL CURRENT LIABILITIES

1,965,705

593,046

1,032,099

3,506,988

3,488,671

923,806

784,749

9,718,435

11,076,031

432,710

548,940

14,999,660

16,530,407

1,949,562

2,365,788

NON-CURRENT LIABILITIES Provisions

621,397

490,972

208,872

216,350

621,397

490,972

208,872

216,350

TOTAL LIABILITIES

15,621,057

17,021,379

2,158,434

2,582,138

NET ASSETS

89,315,851

86,045,016 84,273,982

83,444,883

35,727,327

31,188,770 14,371,867

13,235,238

Retained earnings

53,588,524

54,856,246 69,902,115

70,209,645

Total parent entity interest

89,315,851

86,045,016 84,273,982

83,444,883

TOTAL EQUITY

89,315,851

86,045,016 84,273,982

83,444,883

TOTAL NON-CURRENT LIABILITIES

EQUITY Reserves

The accompanying notes form part of these financial statements.

4 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Statement of changes in equity FOR THE YEAR ENDED 30 JUNE 2007

CONSOLIDATED ENTITY Reserves Retained Asset Revaluation Capital Profits Earnings Reserve Reserve $ $ $ Balance at 1 July 2005 Surplus from ordinary activities Transfer from Asset Revaluation Reserve BALANCE AT 30 JUNE 2006 Surplus from ordinary activities

49,324,601

Bequest Fund-a-Future Reserve Reserve $ $

Total $

31,735,560

198,036

130,000

81,388,197

4,656,819

874,826

(874,826)

54,856,246

30,860,734

198,036

130,000 86,045,016

3,270,835

Transfer to Bequest Reserve

(4,538,557)

4,538,557

AT 30 JUNE 2007

53,588,524

30,860,734

198,036 4,538,557

130,000 89,315,851

PARENT ENTITY Reserves Retained Asset Revaluation Capital Profits Earnings Reserve Reserve $ $ $ Balance at 1 July 2005

Total $

14,110,064

81,285,527

2,159,356

874,826

(874,826)

BALANCE AT 30 JUNE 2006

70,209,645

13,235,238

- 83,444,883

Surplus from ordinary activities

829,099

829,099 -

Surplus from ordinary activities Transfer from Asset Revaluation Reserve

67,175,463

Bequest Fund-a-Future Reserve Reserve $ $

Transfer to Bequest Reserve

(1,136,629)

- 1,136,629

AT 30 JUNE 2007

69,902,115

13,235,238

- 1,136,629

- 84,273,982

The accompanying notes form part of these financial statements

2006-2007 Financial Report • 5

WE SEE... WE HEAR... WE HELP Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2007

Note

CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

37,156,605 17,898,733

14,829,803

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from operating activities

41,843,518

Receipts from supporters

6,290,183

Payments to clients, suppliers and employees

(45,275,431)

Repayment of unutilised government funding

(10,195)

Interest received NET CASH PROVIDED BY OPERATING ACTIVITIES

19 (B)

8,070,783

6,290,183

8,070,783

(44,316,196) (22,911,510) (22,525,043) -

2,181,589

1,777,512

830,912

589,333

5,029,664

2,688,704

2,108,318

964,876

836,213

2,214,728

724,374

1,978,493

138,704

(5,055,797) (1,223,732)

(1,772,028)

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds - sale of property, plant and equipment Proceeds from investments Payment for property, plant and equipment

(7,521,328)

Payments for intangible assets

(46,744)

Payments for investments

(8,019,080)

Capital contributed to subsidiaries

NET CASH PROVIDED BY/ (USED IN) INVESTING ACTIVITIES

(14,750,939)

(12,631)

(53,249)

(5,000,000) (6,019,080)

(90,210)

(1,000,000)

(945,910)

(7,792,575) (7,476,979)

(846,784)

CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from residents’ accommodation bonds

4,092,945

5,665,373

Repayment of residents’ accommodation bonds

(4,431,557)

(2,635,504)

(338,612)

3,029,869

(2,074,002) (5,368,661)

118,092

NET CASH PROVIDED BY/ (USED IN) FINANCING ACTIVITIES NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

(10,059,887)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE FINANCIAL YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR

19 (A)

The accompanying notes form part of these financial statements.

20,161,336

22,235,338

9,440,889

9,322,797

10,101,449

20,161,336

4,072,228

9,440,889

6 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2007 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The St Vincent de Paul Society Victoria Inc. is a non government welfare agency incorporated under the Associations Incorporations Act (Vic) 1981 and is domiciled in Australia. The Society operates a separate company limited by guarantee to run its aged care, community services and disability employment services. The financial statements were authorised for issue by State Council on 22 September 2007. BASIS OF PREPARATION The financial report is a general purpose financial report prepared in accordance with Accounting Standards, Interpretations and the Associations Incorporations Act (Vic) 1981. The financial report covers the consolidated entity being St Vincent de Paul Society Victoria Inc., St Vincent de Paul Aged Care and Community Services, St Vincent de Paul Victoria Endowment Fund and Society of St Vincent de Paul (Victoria). The consolidated entity in these financial statements will be referred to as â&#x20AC;&#x153;the Groupâ&#x20AC;?. The parent entity is St Vincent de Paul Society Victoria Inc. The financial report has been prepared on an accruals basis and is based on historic costs modified by the revaluations of selected non-current assets and financial assets and liabilities, for which the fair value basis of accounting has been applied. Cost is based on the fair value of the consideration given in exchange for assets. The financial report is presented in Australian dollars. The following specific accounting policies have been consistently applied, unless otherwise stated.

Statement of Compliance The financial report of St Vincent de Paul Society Victoria Inc. complies with Australian Accounting Standards to the extent noted above, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Due to the application of Australian specific provisions for not-for-profit entities contained only within the AIFRS, the financial reports and notes thereto are not necessarily compliant with all International Accounting Standards. Judgements and Estimates In the application of AIFRS, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ong oing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of AIFRS that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable, in the relevant notes to the financial statements. Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

(A) PRINCIPLES OF CONSOLIDATION The combined financial report of St Vincent de Paul Society Victoria Inc. comprises the consolidated financial reports of St Vincent de Paul Society Victoria Inc., St Vincent de Paul Aged Care and Community Services, St Vincent de Paul Victoria Endowment Fund and Society of St Vincent de Paul (Victoria). A controlled entity is any entity controlled by St Vincent de Paul Society Inc. Control exists where St Vincent de Paul Society Inc. has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with St Vincent de Paul Society Victoria Inc. to achieve the objectives of St Vincent de Paul Society Inc. A list of controlled entities is contained in Note 9. All inter-entity balances and transactions between entities in the economic entity have been eliminated on consolidation. (B) REVENUE The St Vincent de Paul Society Victoria Inc. is a non-profit organisation and receives a principal part of its income from donations, as cash or in kind. Amounts donated can be recognised only as revenue when the entity gains control, economic benefits are probable and the amount of the contribution can be measured reliably. State Council has the responsibility for ensuring that all voluntary and other revenues to which the Society gains control are accounted for properly. This involves establishing controls to ensure that voluntary revenue is recorded in the financial records, however at times it is impractical to maintain controls over the collection of such revenue prior to its initial entry into the financial records or to ensure that any economic benefit can be measured reliably. Therefore, voluntary revenue is recognised in these accounts when control, benefit and reliable measurement can be achieved.

2006-2007 Financial Report • 7

WE SEE... WE HEAR... WE HELP

Revenue from the sale of goods is recognised upon delivery of the goods to customers.

consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Government grants are principally of a recurrent or capital nature and intended to fund ongoing operations or asset acquisitions.

(E) FINANCIAL INSTRUMENTS Financial Assets All financial assets are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. Where an asset is acquired at no cost, or for a nominal cost, the cost is its fair value as at the date of acquisition.

Income from grants is measured at the fair value of the contributions received or receivable and only when all the following conditions have been satisfied: • the Group obtains control of the grant funds or the right to receive the grant funds; • it is probable that the economic benefits comprising grants will flow to the Group; and • the amount of the grant can be measured reliably. Grants are recognised in the accounting period in which the rights are fulfilled. Resident contributions are recognised when the service is provided. Revenue from donations and bequests is recognised when received into the Gift Account. Interest revenue from banks and from residents with outstanding bonds, is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. The net profit from the sale of an asset is included as revenue when control of the asset passes to the buyer. The profit or loss on disposal is calculated as the differnece between the carrying amount of the asset at the time of disposal and net proceeds. (C) INCOME TAX The Group is not subject to income tax. (D) CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. For the purposes of the Cash Flow Statement, cash and cash equivalents

Held to maturity investments These are investments that have fixed maturities and it is the Group’s intention to hold these investments to maturity. Any investments held to maturity by the Group are stated at amortised cost using the effective interest method. Financial assets at fair value through profit and loss A financial asset is classified in this category if it is held for trading; that is principally with the objective of selling in the short-term with a profit making intention. In addition, any other financial assets so designated by management on initial recognition are included in this category. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise. Loans and receivables Loans and receivables are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method. Available for sale financial assets Available-for-sale financial assets include all financial assets not included in the above categories. Available for sale financial assets are reflected at fair value. Unrealised gains and losses arising from the changes in fair value are taken directly to equity.

Financial Liabilities Financial liabilities, including loans and borrowings, are recognised at amortised cost, comprising original debt less principal payments and amortisation. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arms length transactions, reference to similar instruments and pricing models. Impairment At each reporting date, State Council assesses whether there is objective evidence that a financial instrument has been impaired. In the case of ‘available-for-sale’ financial assets, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. (F) ACCOMMODATION BONDS Accommodation bonds are repayable upon demand. (G) ASSETS HELD IN TRUST The company, Society of St Vincent De Paul (Victoria), holds various properties and bed licences in trust for St Vincent de Paul Society Victoria Inc. (H) GOODS AND SERVICES TAX (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cashflows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

8 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 (I) FIXED ASSETS Land is measured on the cost basis. All other property, plant and equipment is measured at cost, less accumulated depreciation and impairment. Cost includes expenditure that is directly attributable to the acquisition of an item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. Depreciation Depreciation is calculated on a straight line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to the Group to its residual value, except leasehold improvements, which are over the shorter of the estimated useful life of the asset or the term of the lease, as follows: Class of Fixed Asset

Depreciation rate and method

Buildings

1% to 2.5% straight line 10% straight line

Building Improvements Leasehold improvements Furniture, Plant & Equipment Computer Hardware Motor Vehicles

Over the term of the lease 7% to 20% straight line 33% straight line 15% to 20% straight line

Artwork and antiquities are not depreciated. Land is not a depreciable asset. (J) IMPAIRMENT The carrying values of tangible and intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount.

At each reporting date, State Council reviews a number of factors affecting tangible and intangible assets (which includes property, plant and equipment) including their carrying values, to determine if these assets may be impaired. If an impairment indicator exists, the recoverable amount of the asset, being the higher of the asset’s ‘fair value less costs to sell’ and ‘value in use’ is compared to the carrying value. Any excess of the asset’s carrying value over its recoverable amounts is expensed in the Income Statement as an impairment expense. As the future economic benefits of the Group’s assets are not primarily dependant on their ability to generate net cash inflows, and if deprived of the asset, the Group would replace the asset’s remaining future economic benefits, ‘value in use’ is determined as the depreciated replacement cost of the asset, rather than by using discounted future cash flows. Depreciated replacement cost is defined as the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The current replacement cost of an asset is its cost measured by reference to the lowest cost at which the future economic benefits of that asset could currently be obtained in the normal course of business. Impairment losses are recognised in the Income Statement. (K) INTANGIBLES Intangible assets are only recognised if they meet the identifiability criterion, that is it is separable from the Group and arises from contractual or other legal rights. All intangibles are initially recognised at their cost, or when acquired for no consideration, at their fair value at the date of acquisition. Computer Software Computer software that is not integral to the operation of a related piece of

hardware or plant is classified as an intangible (for example, accounting systems software), and is initially recognised at cost. Subsequent to initial recognition, computer software is carried at its cost less accumulated amortisation and impairment losses. Computer software has a finite life, and is amortised on a systematic basis over its estimated useful life, being on a straight line basis over 3 years. Aged Care Bed Licences Bed licences that are purchased are initially recorded at cost. Bed licences that are received for no consideration are recognised at their fair value at the date of acquisition, having regard to recent sale activity within the industry, which the Group then uses to record the licences at deemed cost. Bed licences have an indefinite life, as long as the Group continues to comply with the terms and conditions imposed by Government. Bed licences are therefore tested annually for impairment. Subsequent to initial recognition, bed licences continue to be carried at their original deemed cost (being their fair value on acquisition), less any impairment losses. (L) INVENTORIES Inventories held for sale are valued at the lower of cost and net realisable value. Where inventories are held for distribution or are to be consumed by the Group in providing services or aid at no or nominal charge, they are valued at the lower of cost and replacement cost. (M) TRADE AND OTHER RECEIVABLES Trade debtors are recognised when the risks and rewards of ownership of the underlying sales transactions have passed to customers. This event usually occurs on delivery of goods or services to customers. Trade debtors are recorded at nominal amounts. Credit terms are 30 days. Collectability of overdue accounts is assessed on an ongoing basis.

2006-2007 Financial Report • 9

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(N) TRADE AND OTHER CREDITORS Trade and other creditors represent unpaid liabilities for goods received by and services provided to the Group prior to the end of the financial year. The amounts are unsecured and are normally settled within 30 days. (O) LEASES Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the Income Statement on a straight-line basis over the lease term. Finance leases which transfer to the Group substantially all the risks and benefits included in ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term. (P) EMPLOYEE BENEFITS Wages, salaries, annual leave and sick leave Liabilities for wages, salaries and annual leave expected to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided up to the reporting date, calculated at undiscounted amounts based on

remuneration wage and salary rates that the Group expects to pay as at reporting date including on-costs.

The assets of the trust were sufficient to discharge all liabilities of the trust at 30 June 2007.

Long service leave The provision for long service leave represents the present value of the estimated future cash outflows to be made resulting from employees’ services provided up to reporting date.

(R) COMPARATIVE FIGURES When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to national government bonds at reporting date which most closely match the terms of maturity of the related liabilities. Superannuation The Group contributes to complying funds at the required rate of the employees’ wages and salaries. Superannuation contributions are recognised as an expense when incurred. (Q) DEFICIENCY IN TRUST RIGHT OF INDEMNITY St Vincent de Paul Society Victoria Inc. acts as trustee of the St Vincent de Paul Victoria Endowment Fund. Liabilities have been incurred on behalf of the Fund in the Association’s capacity as trustee. Liabilities incurred on behalf of the trust are not recognised in the financial report of St Vincent de Paul Society Victoria Inc. when it is not probable that the Association will have to meet any of those trust liabilities from its own resources. When it is probable that the Association will have to meet some trust liabilities, a liability for the Deficiency in Trust Right of Indemnity is brought to account. The assets of St Vincent de Paul Victoria Endowment Fund, which lie behind the right of indemnity, are not available to meet any liabilities of St Vincent de Paul Society Victoria Inc. acting in its own right.

NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES During the financial year, the parent entity made the following adjustments following the reconciliation of the Fixed Asset Register. (a) Recorded the disposal of the property, 57 Burke Street in Maryborough, which was sold in January 2005, but not disposed of in the books as at 30 June 2006. Instead, the property, 54 High Street in Maryborough, was incorrectly disposed of in the books as at 30 June 2006. (b) Recorded motor vehicles purchased under finance leases that were previously not recorded as assets as at 30 June 2006. (c) A recalculation of accumulated depreciation for all property, plant and equipment was performed as at 30 June 2006 and depreciation adjustments were made. As the Society’s assets were not tracked in a fixed asset register in prior years, depreciation expense was calculated based on the general ledger value at the end of each year. As a consequence of not being able to track asset movements and classifications accurately, the accumulated depreciation as at 30 June 2006 was incorrect. The financial statements of 2006 have been restated to reflect these adjustments. The effect of the restatement on those financial statements is summarised in the schedule on the following page.

10 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES CONTINUED Previously reported at 1 July 2005 Note $

Effect of adjustment $

Restated balance at 1 July 2005 $

22,235,338 438,246 153,737 8,159,917 489,561 31,476,799

51,020,060

51,140,436 13,585,744 64,726,180

Consolidated Entity Reconciliation of Equity at 1 July 2005 ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

2 (a) 2 (b)

Intangibles TOTAL NON-CURRENT ASSETS

13,585,744 64,605,804

31,240 89,136 120,376

TOTAL ASSETS

96,082,603

120,376

96,202,979

CURRENT LIABILITIES Trade and other creditors Provisions Other liabilities TOTAL CURRENT LIABILITIES

1,333,277 3,007,525 9,810,617 14,151,419

663,363 663,363

TOTAL LIABILITIES

14,814,782

NET ASSETS

81,267,821

120,376

81,388,197

32,063,596 49,204,225

31,240 89,136

32,063,596 49,324,601

81,267,821

120,376

81,388,197

NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES

EQUITY Reserves Retained earnings

TOTAL EQUITY

2 (a) 2 (b)

2006-2007 Financial Report • 11

WE SEE... WE HEAR... WE HELP NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES CONTINUED Previously reported at 1 July 2005 Note $

Effect of adjustment $

Restated balance at 1 July 2005 $

9,322,797 132,418 125,792 1,021,213 298,424 10,900,644

21,640,758

21,761,134 5,192 50,859,829 72,626,155

Parent Entity Reconciliation of Equity at 1 July 2005 ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

2 (a) 2 (b)

Intangibles Other financial assets TOTAL NON-CURRENT ASSETS

5,192 50,859,829 72,505,779

31,240 89,136 120,376

TOTAL ASSETS

83,406,423

120,376

83,526,799

247,107 591,717 1,130,749 1,969,573

271,699 271,699

2,241,272

81,165,151

120,376

81,285,527

14,110,064 67,055,087

31,240 89,136 120,376

14,110,064 67,175,463

CURRENT LIABILITIES Trade and other creditors Provisions Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Reserves Retained earnings TOTAL EQUITY

2 (a) 2 (b)

81,165,151

81,285,527

12 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES CONTINUED Previously reported at 30 June 2006 Note $

Effect of adjustment $

Restated balance at 30 June 2006 $

20,161,336 2,056,680 183,060 13,026,978 414,192 35,842,246

53,042,409

53,084,587

14,122,030 67,164,439

31,240 44,057 (33,119) 17,531 59,709

14,139,561 67,224,148

103,006,685

59,709

103,066,394

1,965,704 3,488,671 11,076,031 16,530,406

490,972 490,972

TOTAL LIABILITIES

17,021,378

NET ASSETS

85,985,307

59,709

86,045,016

31,188,770 54,796,537

31,240 44,057 (15,588) 59,709

31,188,770 54,856,246

Consolidated Entity Reconciliation of Equity at 30 June 2006 ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

Intangibles TOTAL NON-CURRENT ASSETS

2 (a) 2 (b) 2 (c) 2 (c)

TOTAL ASSETS CURRENT LIABILITIES Trade and other creditors Provisions Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES

EQUITY Reserves Retained earnings

TOTAL EQUITY

2 (a) 2 (b) 2 (c)

85,985,307

86,045,016

2006-2007 Financial Report • 13

WE SEE... WE HEAR... WE HELP NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES CONTINUED

Note

Previously reported at Effect of adjustment 30 June 2006 $ $

Restated balance at 30 June 2006 $

Parent Entity Reconciliation of Equity at 30 June 2006 ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment

Intangibles Financial assets TOTAL NON-CURRENT ASSETS

9,440,889 1,607,916 154,927 2,026,978 270,259 13,500,969

2 (a) 2 (b) 2 (c) 2 (c)

TOTAL ASSETS CURRENT LIABILITIES Trade and other creditors Provisions Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Reserves Retained earnings

TOTAL EQUITY

2 (a) 2 (b) 2 (c)

21,567,132

9,440,889 1,607,916 154,927 2,026,978 270,259 13,500,969

39,382 50,859,829 72,466,343

31,240 44,057 (33,119) 17,531 59,709

56,913 50,859,829 72,526,052

85,967,312

59,709

86,027,021

1,032,099 784,749 548,940 2,365,788

216,350 216,350

2,582,138

83,385,174

59,709

83,444,883

13,235,238 70,149,936

31,240 44,057 (15,588) 59,709

13,235,238 70,209,645

83,385,174

21,609,310

83,444,883

14 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES CONTINUED Previously reported at 30 June 2006 Note $

Effect of adjustment $

Restated balance at 30 June 2006 $

Consolidated Entity Reconciliation of Profit or Loss 2006 REVENUE AND OTHER INCOME Fundraising

6,417,317

Government grants

19,057,839

Sale of goods

16,236,499

Other income

6,658,501

869,275

5,765

49,245,196

2 (c)

(10,622,506)

(45,079)

(10,667,585)

(656,462)

2 (c)

(3,049,941)

(15,588)

(3,065,529)

(14,328,909)

(60,667)

(14,389,576)

34,916,287

(60,667)

34,855,620

Net gain on sale of property, plant & equipment

2 (a)

Changes in value of investment TOTAL REVENUE FROM OPERATING ACTIVITIES EXPENSES FROM OPERATING ACTIVITIES Cost of sales Fundraising/Public relations Administration TOTAL EXPENSES FROM OPERATING ACTIVITIES TOTAL FUNDS AVAILABLE FOR OTHER ACTIVITIES EXPENSES FROM OTHER ACTIVITIES People in need services Aged care services

(7,203,456)

(12,953,499)

Homeless & housing services

(7,798,384)

Support services

(2,243,462)

(30,198,801)

4,717,486

(60,667)

4,656,819

SURPLUS FROM OPERATING ACTIVITIES

2006-2007 Financial Report • 15

WE SEE... WE HEAR... WE HELP NOTE 2 RESTATEMENT OF PRIOR YEAR BALANCES CONTINUED Previously reported at Effect of adjustment 30 June 2006 Note $ $

Restated balance at 30 June 2006 $

Parent Entity Reconciliation of Profit or Loss 2006 REVENUE AND OTHER INCOME Fundraising

5,800,821

Government grants

1,644,873

Sale of goods

15,212,555

Other income

869,398

Net gain on sale of property, plant & equipment

921,994

Changes in value of investment TOTAL REVENUE FROM OPERATING ACTIVITIES

5,765

24,455,406

(9,045,579)

(45,079)

(9,090,658)

(656,462)

EXPENSES FROM OPERATING ACTIVITIES Cost of sales Fundraising/Public relations Administration TOTAL EXPENSES FROM OPERATING ACTIVITIES TOTAL FUNDS AVAILABLE FOR OTHER ACTIVITIES

2 (c)

(3,049,941)

(15,588)

(3,065,529)

(12,751,982)

(60,667)

(12,812,649)

11,703,424

(60,667)

11,642,757

(7,239,939)

EXPENSES FROM OTHER ACTIVITIES People in need services Support services

SURPLUS FROM OPERATING ACTIVITIES

(2,243,462)

(9,483,401)

2,220,023

(60,667)

2,159,356

16 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 3 REVENUE AND OTHER INCOME (A) FUNDRAISING ACTIVITIES Bequests

2,059,443

2,427,252

1,576,763

2,128,436

Donations

4,713,426

3,990,065

4,189,607

3,672,385

6,772,869

6,417,317

5,766,370 5,800,821

287,429

1,644,873

(B) GOVERNMENT GRANTS Councils/Conferences/Centres

287,429

1,644,873

Community & Support Services Group

8,056,708

7,640,684

Aged Care Group

9,023,988

9,132,282

Aged Care bed licences granted

640,000

17,368,125

19,057,839

287,429 1,644,873

16,153,652

14,688,699

16,153,652 14,688,699

118,600

249,155

118,600

249,155

312,919

274,701

312,919

274,701

1,039,684

1,023,944

17,624,855

16,236,499

4,489,316

4,056,714

16,585,171 15,212,555

(D)OTHER INCOME Client rent/fees Accomodation bonds retention Interest received - other persons Sundry income (Includes money paid to SW from CC)

(E) CHANGES IN VALUE OF INVESTMENT TOTAL REVENUE

307,542

295,128

2,449,516

1,966,322

830,912

597,151

406,809

340,337

241,254

272,247

7,653,183

6,658,501

1,072,166

869,398

7,542

5,765

7,542

5,765

49,426,574

48,375,921

20,304

869,275

23,718,678 23,533,412

OTHER INCOME (F) NET GAIN ON SALE OF PROPERTY, PLANT AND EQUIPMENT

27,385

921,994

2006-2007 Financial Report â&#x20AC;˘ 17

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 4 OPERATING SURPLUS OPERATING EXPENSES (A) COST OF SALES Employee salaries & benefits Cost of goods sold - purchases/materials Selling & Administration

5,463,864 865,117 5,218,466 11,547,447

4,954,656 862,699 4,850,230 10,667,585

313,598 320,376 126,759 760,733

251,036 313,255 92,171 656,462

191,594 75,641 1,199,689 243,603 38,493 24,801 3,650 109,223 56,960 43,063 37,545 11,741 228,419 529,855 2,794,277

175,145 101,932 1,155,080 272,574 69,255 35,955 2,700 176,460 100,372 48,896 28,138 22,646 240,627 635,749 3,065,529

4,120,977 3,705,941 793,335 795,494 4,951,441 4,589,223 9,865,753 9,090,658

(B) FUNDRAISING/PUBLIC RELATIONS Employee salaries & benefits Promotion Other

313,598 320,376 126,759 760,733

251,036 313,255 92,171 656,462

(C) ADMINISTRATION Computer maintenance Legal & Audit Employee salaries & benefits Depreciation & amortisation Insurance Motor vehicle running costs Occupancy Printing/Postage/Office supplies Repairs & maintenance Telephone Training Travel & accommodation Other State Council

191,594 175,145 75,641 101,932 1,199,689 1,155,080 243,603 272,574 38,493 69,255 24,801 35,955 3,650 2,700 109,223 176,460 56,960 100,372 43,063 48,896 37,545 28,138 11,741 22,646 228,419 240,627 529,855 635,749 2,794,277 3,065,529

18 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 4 OPERATING SURPLUS CONTINUED (D)PEOPLE IN NEED SERVICES Accommodation/Transport Cash Food vouchers Food purchases Whitegoods Utilities Medical Education Compassionate Youth Migrant & Refugees Overseas Indigenous Program Bursary Sundry

548,244 20,670 3,087,261 1,222,799 362,133 334,582 81,707 562,603 15,000 56,969 50,658 422,855 38,599 453,674 7,257,754

407,009 38,576 2,716,769 1,014,178 367,161 223,973 68,298 320,342 17,672 25,592 1,200,199 537,169 20,000 19,472 227,046 7,203,456

703,683 356,004 582,536 9,502,167 159,682 207,253 171,244 44,177 239,190 30,127 39,690 335,811 185,512 193,438 32,104 686,894 13,469,512

675,541 307,892 609,818 9,186,744 222,503 189,046 171,377 48,880 305,629 30,671 44,978 344,675 202,740 613,005 12,953,499

548,244 407,009 20,670 38,576 3,087,261 2,716,769 1,222,799 1,014,178 362,133 367,161 334,582 223,973 81,707 68,298 562,603 320,342 15,000 17,672 56,969 25,592 50,658 1,200,199 422,855 537,169 20,000 38,599 19,472 466,369 263,529 7,270,449 7,239,939

(E) AGED CARE SERVICES Catering & Food Cleaning Depreciation Employee salaries & benefits Occupancy Medical & other supplies Legal & Audit Motor vehicle running Repairs & maintenance Resident amenities Telephone Utilities Workcover Write off of construction costs Interest paid - other persons Other

2006-2007 Financial Report â&#x20AC;˘ 19

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 4 OPERATING SURPLUS CONTINUED (F) HOMELESSNESS & HOUSING SERVICES Cleaning/Waste removal Client support/Emergency accommodation Depreciation

208,786

203,606

1,077,515

1,047,896

364,108

386,712

5,245,856

5,031,569

173,056

159,474

86,450

134,270

Motor vehicle running

134,173

146,892

Repairs & Maintenance

139,371

141,809

80,045

87,441

Employee salaries & benefits Occupancy Legal & Audit

Telephone Utilities

106,771

93,654

Other

504,437

365,061

8,120,568

7,798,384

(G)SUPPORT SERVICES Accounting & payroll support

176,400

168,000

176,400

168,000

Conference Support - Employee salaries & benefits

887,662

717,717

887,662

717,717

Conference Support - Other

196,071

185,905

196,071

185,905

State, National, International Councils

234,903

524,835

234,903

524,835

Conference operating

730,716

579,515

730,716

579,515

67,490

Vinnies Budget Groceries set up

67,490

2,225,752

2,243,462

2,225,752 2,243,462

46,176,043

44,588,377

22,916,964 22,296,050

20 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

714,336 33,804 12,502 323,961 611,759 50,106 1,746,468

261,362 487 146,746 413,315 41,635 863,545

390,535 33,030 425,064 18,723 867,352

67,210

176,393

9,257

1,528

WRITE OFF OF PLANT AND EQUIPMENT

19,725

WRITE OFF OF CONSTRUCTION COSTS

193,438

6,469

11,449

1,599,440

1,422,546

1,530,829

1,337,904

58,642 33,037 91,679

79,121 79,121

22,776 33,037 55,813

40,011 40,011

20,304

869,275

27,385

921,994

1,332,100 87,600 44,400

1,092,877 96,000 23,013

609,000 48,000 6,000

514,380 48,000 11,013

119,890 1,583,990

98,358 1,310,248

54,810 717,810

46,294 619,687

NOTE 4 OPERATING SURPLUS CONTINUED (I) SURPLUS FROM OPERATING ACTIVITIES HAS BEEN DETERMINED AFTER: (I) EXPENSES Depreciation and amortisation of property, plant & equipment - Buildings 603,489 - Building Improvements 44,721 - Leasehold Improvements 9,433 - Furniture, Plant and Equipment 471,013 - Motor Vehicles 593,135 - Computer Equipment 83,920 1,805,711 AMORTISATION OF COMPUTER SOFTWARE

BAD AND DOUBTFUL DEBTS Rental expense on operating leases - Minimum lease payments Remuneration of Auditor - Audit - Other Services

(II) NET GAINS GAIN ON SALE OF PROPERTY, PLANT AND EQUIPMENT

NOTE 5 KEY MANAGEMENT PERSONNEL COMPENSATION Short-term employee benefits - Salary & Fees - Non-Cash Benefits - Other Post-employment benefits - Superannuation TOTAL

Key management personnel include the Chief Executive Officer (CEO), those officers that report to the CEO and State Councillors. All State Councillors volunteer their services without remuneration.

2006-2007 Financial Report • 21

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 6 CASH AND CASH EQUIVALENTS Cash on hand Cash deposits with banks - Councils & Central Office - Centres - Aged Care & Community Services - SVDP Victoria Endowment Fund - Society of St Vincent de Paul (Victoria) Term Deposits Councils, Central Office & Conferences Aged Care & Community Services - Funds Awaiting Utilisation - Employee Entitlements - Residents’Trust

53,686

20,394

34,646

3,004

67,896 423,552 852,627 941,037 4,873

109,604 (292,425) 913,726 -

67,896 423,552 -

109,604 (292,425) -

3,546,134

9,620,706

3,546,134

9,620,706

2,995,708 1,215,936 10,101,449

2,978,544 6,810,787 20,161,336

4,072,228

9,440,889

Other debtors Amount receivable from subsidiary

543,385 (24,700) 518,685 502,254 -

411,078 (22,587) 388,491 1,668,189 -

215,758 215,758 340,258 1,889

115,282 115,282 1,492,634 -

TOTAL CURRENT RECEIVABLES

1,020,939

2,056,680

557,905

1,607,916

117,783

183,060

97,190

154,927

NOTE 7 TRADE AND OTHER RECEIVABLES Trade debtors Allowance for doubtful debts

NOTE 8 INVENTORIES Finished goods - average cost

22 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 9 OTHER FINANCIAL ASSETS CURRENT Medium term notes - Funds Awaiting Distribution - Residents’Trust Units in equity linked investment Fair-value through profit and loss: - Shares in listed corporations at fair value

10,633,471 8,385,609 2,000,000

9,482,500 3,517,500 -

8,019,080 -

2,000,000 -

34,520 21,053,600

26,978 13,026,978

34,520 8,053,600

26,978 2,026,978

The redemption value of units in the equity linked investment as at 30 June 2007 was $2,048,400. This investment is for a 5 year term with the original investment capital guaranteed by the ANZ Bank. NON CURRENT Investment in Controlled entities

Country of Incorporation

51,805,739 50,859,829

Percentage Owned

PARENT ENTITY: St Vincent de Paul Society Victoria Inc.

Aust

CONTROLLED ENTITIES OF ST VINCENT DE PAUL SOCIETY VICTORIA INC. St Vincent de Paul Aged Care and Community Services

Aust

100%

Society of St Vincent de Paul (Victoria)

Aust

100%

St Vincent de Paul Victoria Endowment Fund

Aust

100%

N/A

During the financial year, St Vincent de Paul Society Victoria Inc. transferred funds of $4,873 to the company, Society of St Vincent de Paul (Victoria). During the financial year, St Vincent de Paul Society Victoria Inc. established the St Vincent de Paul Society Victoria Endowment Fund. Established on 27 November 2006, the fund is a Prescribed Private Fund with St Vincent de Paul Society Victoria Inc. as trustee. The purpose of the fund is to provide a separate entity into which bequests will be channelled over a period of time, and remain within the fund with interest earnings flowing back to St Vincent de Paul Society Victoria Inc. It is the trustee’s intention that the principal of each bequest will remain within the fund for perpetuity.

2006-2007 Financial Report • 23

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

260,325 252,633 512,958

225,970 7,000 37,289 270,259

NOTE 10 OTHER ASSETS - CURRENT GST recoveries Prepayments Accrued income

347,508 385,676 733,184

225,970 150,933 37,289 414,192

25,169,125

25,389,601

9,398,114 9,618,590

24,174,007 6,691,923 (3,373,408) 27,492,522

24,038,688 1,026,310 (2,774,779) 22,290,219

10,520,082 10,381,263 71,300 (1,378,265) (1,121,763) 9,213,117 9,259,500

536,008 (93,251) 442,757

402,785 (48,530) 354,255

52,985 (487) 52,498

22,689 (18,663) 4,026

43,103 (28,160) 14,943

4,661,678 (2,413,780) 2,247,898

4,365,414 (1,943,786) 2,421,628

1,451,607 (505,524) 946,083

1,341,252 (358,778) 982,474

4,632,348 (2,349,780) 2,282,568

4,601,134 (2,113,094) 2,488,040

486,445 (335,007) 151,438

378,410 (252,508) 125,902

525 57,790,859

53,084,588

NOTE 11 PROPERTY, PLANT & EQUIPMENT LAND AT COST BUILDINGS At cost Buildings under construction Less accumulated depreciation BUILDING IMPROVEMENTS At cost Less accumulated depreciation LEASEHOLD IMPROVEMENTS At cost Less accumulated depreciation FURNITURE, PLANT & EQUIPMENT At cost Less accumulated depreciation MOTOR VEHICLES At cost Less accumulated depreciation COMPUTER HARDWARE At cost Less accumulated depreciation ARTWORK & ANTIQUITIES At cost

3,408,678 3,390,950 (1,811,506) (1,702,154) 1,597,172 1,688,796 250,241 (184,716) 65,525

203,091 (143,141) 59,950

21,272,509 21,609,310

24 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 11 PROPERTY, PLANT & EQUIPMENT CONTINUED RECONCILIATIONS Reconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the current and previous financial year are set out below: TOTAL LAND Carrying amount at beginning of financial year 25,389,601 24,700,699 9,618,590 9,714,753 Additions 708 1,063,722 708 278,657 Disposals (96,000) (374,820) (96,000) (374,820) Reclassifications (125,184) (125,184) CARRYING AMOUNT AT END 25,169,125 25,389,601 9,398,114 9,618,590 OF FINANCIAL YEAR TOTAL BUILDINGS Carrying amount at beginning of financial year 22,290,219 21,512,715 9,259,500 9,502,497 Additions 5,929,637 1,806,218 145,386 397,418 Disposals (55,591) (249,880) (55,591) (249,880) Reclassifications 125,184 (64,498) 125,184 Write off of construction costs (193,438) Less depreciation (603,489) (714,336) (261,362) (390,535) CARRYING AMOUNT AT END 27,492,522 22,290,219 9,213,117 9,259,500 OF FINANCIAL YEAR TOTAL BUILDING IMPROVEMENTS Carrying amount at beginning of financial year 354,255 187,194 Additions 133,223 203,878 52,985 Disposals (3,013) Reclassifications Less depreciation (44,721) (33,804) (487) CARRYING AMOUNT AT END 442,757 354,255 52,498 OF FINANCIAL YEAR TOTAL LEASEHOLD IMPROVEMENTS Carrying amount at beginning of financial year 14,943 26,354 Additions 1,091 Disposals (1,484) Less depreciation (9,433) (12,502) CARRYING AMOUNT AT END 4,026 14,943 OF FINANCIAL YEAR

2006-2007 Financial Report • 25

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

739,973 275,531 (33,030) 982,474

NOTE 11 PROPERTY, PLANT & EQUIPMENT CONTINUED TOTAL FURNITURE, PLANT & EQUIPMENT Carrying amount at beginning of financial year Additions Disposals Impairment losses Reclassifications Less depreciation CARRYING AMOUNT AT END OF FINANCIAL YEAR TOTAL MOTOR VEHICLES Carrying amount at beginning of financial year Additions Disposals Reclassifications Less depreciation CARRYING AMOUNT AT END OF FINANCIAL YEAR TOTAL COMPUTER HARDWARE Carrying amount at beginning of financial year Additions Disposals Impairment losses Reclassifications Less depreciation CARRYING AMOUNT AT END OF FINANCIAL YEAR TOTAL ARTWORK & ANTIQUITIES Additions CARRYING AMOUNT AT END OF YEAR TOTAL PROPERTY, PLANT & EQUIPMENT Carrying amount at beginning of financial year Additions Disposals Impairment losses Write off of construction costs Less depreciation CARRYING AMOUNT AT END OF FINANCIAL YEAR

2,421,628 299,149 (317) (1,549) (471,013) 2,247,898

1,912,311 804,616 (16,051) 44,714 (323,962) 2,421,628

982,474 110,355 (146,746) 946,083

2,488,040 1,046,685 (659,022) (593,135) 2,282,568

2,706,188 1,090,877 (717,740) 20,474 (611,759) 2,488,040

1,688,796 1,763,214 863,723 782,445 (542,032) (431,799) (413,315) (425,064) 1,597,172 1,688,796

125,902 111,402 (3,495) 1,549 (83,920) 151,438

94,976 85,396 (3,674) (690) (50,106) 125,902

59,950 50,576 (3,366) (41,635) 65,525

40,696 37,977 (18,723) 59,950

525 525

53,084,588 7,521,328 (815,908) (193,438) (1,805,711) 57,790,859

51,140,437 5,055,797 (1,345,453) (19,725) (1,746,468) 53,084,588

21,609,310 21,761,133 1,223,732 1,772,028 (696,989) (1,056,499) (863,545) (867,352) 21,272,509 21,609,310

A valuation of land and buildings was undertaken by State Council on 30 June 2007. This valuation was based on independent valuations undertaken by m3 Property Strategists on 30 June 2004 and 30 June 2005. A rolling valuation of the property portfolio is conducted every 2 years. State Council’s valuation disclosed a current market value of land & buildings of $65,941,106 for the Group and $30,507,429 for the parent entity..

26 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 12 INTANGIBLES AGED CARE BED LICENCES AGED CARE BED LICENCES AT COST

14,000,000

COMPUTER SOFTWARE & IT DEVELOPMENT At cost Less accumulated amortisation

TOTAL INTANGIBLES

658,344

611,600

78,853

66,222

(539,249)

(472,039)

(18,566)

(9,309)

119,095

139,561

60,287

56,913

14,119,095

14,139,561

60,287

56,913

RECONCILIATIONS Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the current and previous financial year are set out below: AGED CARE BED LICENCES Carrying amount at beginning of financial year Additions - contributed by Government CARRYING AMOUNT AT END OF FINANCIAL YEAR

14,000,000

13,360,000

640,000

14,000,000

139,561

225,744

56,913

5,192

TOTAL COMPUTER SOFTWARE & IT DEVELOPMENT Carrying amount at beginning of financial year Additions

46,744

90,210

12,631

53,249

Less amortisation

(67,210)

(176,393)

(9,257)

(1,528)

CARRYING AMOUNT AT END OF FINANCIAL YEAR

119,095

139,561

60,287

56,913

14,139,561

13,585,744

56,913

5,192

TOTAL INTANGIBLES Carrying amount at beginning of financial year Additions Less amortisation CARRYING AMOUNT AT END OF FINANCIAL YEAR

46,744

730,210

12,631

53,249

(67,210)

(176,393)

(9,257)

(1,528)

14,119,095

14,139,561

60,287

56,913

2006-2007 Financial Report • 27

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 13 TRADE AND OTHER PAYABLES Unsecured: Trade creditors

638,947

478,570

399,196

125,386

Accrued creditors

188,491

978,514

15,870

839,414

Other creditors

386,627

253,828

177,980

58,304

8,995

Amount payable to subsidiary Grants in advance

560,172

254,793

1,774,237

1,965,705

593,046 1,032,099

(a)

3,506,988

3,488,671

923,806

784,749

(a)

621,397

490,972

208,872

216,350

4,128,385

3,979,643

9,601,545

10,328,287

47,590

397,590

400,000

NOTE 14 PROVISIONS - CURRENT Employee benefits PROVISIONS - NON-CURRENT Employee benefits (A) AGGREGATE EMPLOYEE ENTITLEMENT LIABILITY

1,132,678 1,001,099

NOTE 15 OTHER LIABILITIES Unsecured: Refundable accommodation bonds Prepaid income Other liabilities

34,180

484,749

GST payable

35,120

262,995

35,120

148,940

9,718,435

11,076,031

432,710

548,940

28 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 16 RESERVES NATURE AND PURPOSE OF RESERVES: Asset revaluation reserve Represents previous increases in valuation of land and buildings. Land and buildings are now held at deemed cost, however the entity is using this reserve to keep a record of those previous revaluations. Capital profits reserve Represents the capital value of land and building sold. Fund-a-Future reserve Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24. Bequest reserve The Group receives bequests where the bequestor has nominated a specific purpose or service to which the funds are to be directed. In these instances the Group establishes a reserve to recognise the unapplied funds from bequests of this nature. The reserve is supported by the Donations and Bequest Register that details the breakdown of the reserve.

NOTE 17 LEASE COMMITMENTS RECEIVABLE Commitments in relation to a lease contracted for at the reporting date but not recognised as assets receivable: Within one year 38,233 Later than one year but not later than 5 years Later than five years 38,233 REPRESENTING NON-CANCELLABLE OPERATING LEASE 38,233

50,000 200,000 100,000 350,000

50,000 200,000 150,000 400,000

350,000

400,000

NOTE 18 CAPITAL AND LEASE COMMITMENTS (a) Lease Commitments Payable Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities payable: PROPERTY – OPERATING LEASES Not later than one year 1,164,555 1,304,489 Later than one year but not later than 5 years 1,533,218 1,248,861 Later than five years 8,189 12,533 2,705,962 2,565,883 The property leases are non cancellable leases spanning various terms with rental paid monthly in advance. This covers property leases for Centres and Community Services. (b) Capital Commitments Capital expenditure commitments contracted for: Capital expenditure projects 5,540,361 5,540,361 PAYABLE NOT LATER THAN ONE YEAR 5,540,361 -

1,119,757 1,216,644 1,514,357 1,208,460 7,444 11,783 2,641,558 2,436,887

2006-2007 Financial Report • 29

WE SEE... WE HEAR... WE HELP CONSOLIDATED CONSOLIDATED ENTITY ENTITY 2007 2006 $ $

PARENT ENTITY 2007 $

PARENT ENTITY 2006 $

NOTE 19 NOTES TO THE STATEMENT OF CASH FLOWS (A) RECONCILIATION OF CASH AND CASH EQUIVALENTS Cash and cash equivalents at the end of the financial period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows: Cash on hand 53,686 20,394 34,646 3,004 Cash deposits with banks Bank term deposits BALANCE PER CASH FLOW STATEMENT

2,289,985

730,905

491,448

(182,821) 9,620,706

7,757,778

19,410,037

3,546,134

10,101,449

20,161,336

4,072,228 9,440,889

(B) RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH OPERATING SURPLUS AFTER INCOME TAX Operating surplus

3,270,835

4,656,819

829,099

2,159,356

1,872,921

1,922,861

872,802

868,880

Cash flows in operating activities but not in operating result Non-cash flows in operating surplus Depreciation and amortisation (Profit)/loss on sale of fixed assets

(20,304)

(869,275)

(27,385)

(921,994)

Residents’ accommodation bond retentions

(300,240)

(284,607)

Interest deducted from residents’ accommodation bond

(119,995)

(129,182)

32,104

19,725

Interest paid and payable on refund of residents’ accommodation bond Fixed assets written off Write off of construction costs

193,438

(640,000)

(7,542)

(5,765)

(7,542)

(5,765)

Changes in assets and liabilities (Increase)/decrease in receivables

723,617

(1,600,523)

(Increase)/decrease in inventories

65,277

(29,323)

57,737

Aged Care bed licences granted Changes in value of investment

901,837 (1,448,591) (29,134)

(Increase)/decrease in prepayments

(234,743)

98,463

(208,344)

1,258

Increase/(decrease) in payables

(594,447)

(700,998)

(441,465)

203,183

148,742

250,509

131,579

137,683

5,029,664

2,688,704

2,108,318

964,876

Increase/(decrease) in provisions CASH FLOWS FROM OPERATIONS

30 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 20 FINANCIAL INSTRUMENTS (A) FINANCIAL RISK MANAGEMENT The Group’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable, and refundable accommodation bonds. The Group’s investment strategies and associated risk profile is set out in the Treasury Policy, and is reviewed by the Finance Committee. Membership of the Finance Committee consists of representatives from State Council and the St Vincent de Paul Aged Care & Community Services Board as well as external members selected for their particular financial and legal expertise. The Group does not have any derivative instruments at 30 June 2007. (i) Treasury Risk Management The Chief Financial Officer is delegated the responsibility of determining the spread of investments across available financial investment options within the confines of the Group’s Treasury Policy and analysing interest rate exposure in the context of the most recent economic conditions and forecasts. The Finance Committee meet on a regular basis to monitor movement in the financial investments and make recommendations. (ii) Financial Risks The main risks the Group is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. Interest rate risk The Group is subject to normal commercial interest rate fluctuations on its bank accounts and money market instruments. For further details on interest rate risk, refer to Note 20(b). Foreign currency risk The Group is not exposed to fluctuations in foreign currencies. Liquidity risk The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. Price risk The Group is not exposed to any material commodity price risk. (B) INTEREST RATE RISK The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates, and the effective weighted average interest rates on those financial assets and financial liabilities, are presented in the schedule on the following page. Exposures arise predominantly from assets bearing variable interest rates as the Group intends to hold fixed interest rate assets to maturity.

2006-2007 Financial Report â&#x20AC;˘ 31

WE SEE... WE HEAR... WE HELP NOTE 20 (B) FINANCIAL INSTRUMENTS - CONTINUED Financial Instruments Weighted average effective interest rate

Floating Interest Rate

2007 2006 $ $

2007 $

2006 $

Fixed interest rate maturing in: 1 year or less Over 1 to 5 years 2007 $

2006 2007 $ $

Total carrying amount as per the statement of financial position

Non Interest bearing

2006 $

2007 $

2006 $

2007 $

2006 $

4,072,230

9,440,889

(I) FINANCIAL ASSETS Cash - SVDP Inc.

526,096

5.89% 6.26%

- 5,050,795 10,703,056

32,516

17,390

- SVDPVIC 4.50% N/A Endowment Fund

941,037

- Society of SVDP (Victoria)

4,873

556,016 1,607,916

556,016

1,607,916

576,806

480,346

576,806

480,346

8,019,080 2,000,000

34,520

26,978

8,053,600

2,026,978

7.63% 6.80% 13,000,000 11,000,000

21,832,492 14,290,342 8,724,554 18,853,603

- 1,730,827 2,132,630 32,287,873 35,276,575

- ACCS

6.21% 5.84%

Trade and Other Receivables - SVDP Inc. - ACCS

Other Financial Assets - SVDP Inc. 6.67% 6.02% - ACCS

TOTAL FINANCIAL ASSETS

813,412 1,290,342 2,732,722 8,150,547

5,083,311 10,720,446

- 13,000,000 11,000,000

(II) FINANCIAL LIABILITIES Trade and Other Payables - SVDP Inc. - ACCS

593,045 1,023,104

593,045

1,023,104

621,021

801,862

621,021

801,862

35,120

148,940

35,120

148,940

Refundable Accommodation Bonds and Other Liabilities - SVDP Inc. - ACCS TOTAL FINANCIAL LIABILITIES

- 9,601,545 10,328,287

- 10,850,731 12,302,193 10,850,731 12,302,193

Non-interest bearing other financial assets consist of shares in listed entities, carried at fair value.

9,601,545 10,328,287

32 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 20 FINANCIAL INSTRUMENTS - CONTINUED (C) NET FAIR VALUES The net fair values of listed investments have been valued at the quoted market bid price at balance date adjusted for transaction costs expected to be incurred. For other assets and liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form other than listed investments. The aggregate net fair values and carrying amounts of the Group’s financial assets and financial liabilities are disclosed in the Balance Sheet and in the notes to the financial statements. Aggregate net fair values and carrying amounts of the Group’s financial assets and financial liabilities at balance date 2007

2006

Carrying Amount $

Net Fair Value $

Carrying Amount $

Net Fair Value $

10,101,451

20,161,335

1,132,822

1,108,122

2,088,262

2,065,675

FINANCIAL ASSETS Cash Trade and other receivables Other financial assets

21,053,600

21,102,000

13,026,978

32,287,873

32,311,573

35,276,575

35,253,988

Trade and other payables

1,249,186

1,973,906

Refundable accommodation bonds

9,601,545

10,328,287

10,850,731

12,302,193

FINANCIAL LIABILITIES

Fair values are materially in line with carrying values.

2006-2007 Financial Report • 33

WE SEE... WE HEAR... WE HELP NOTE 21 RELATED PARTY DISCLOSURES Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. The parent entity is St Vincent de Paul Society Victoria Inc. The amount receivable from St Vincent de Paul Aged Care and Community Services is disclosed in Note 7 to the financial statements (2006: the amount payable to St Vincent de Paul Aged Care and Community Services is disclosed in Note 13). St Vincent de Paul Aged Care and Community Services received the following revenue from the Society during the financial year: • sales totalling $12,695. During the financial year, St Vincent de Paul Aged Care and Community Services paid the Society $50,000 for the rental of the office premises at Prospect Street, Box Hill. During the financial year, St Vincent de Paul Society Victoria Inc. transferred funds of $4,873 to the company, Society of St Vincent de Paul (Victoria). During the financial year, St Vincent de Paul Society Victoria Inc. transferred funds of $941,037 to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9.

NOTE 22 SEGMENT REPORTING ST VINCENT DE PAUL SOCIETY INC. For management purposes, the parent entity is organised into two major operating divisions, being centres of charity and conferences and councils. The divisions are the basis on which the Parent entity reports its primary segment information. The centres of charity segment provides material aid free of charge to those in need and sells surplus donated goods. The conferences and councils segment provides assistance to those in need. Financial information about the parent entity’s business segments is presented in the schedule on the following page. ST VINCENT DE PAUL AGED CARE AND COMMUNITY SERVICES For management purposes, the Company is organised into three major operating divisions, being Aged Care Services, Community Services and Disability Employment Services. The divisions are the basis on which the Company reports its primary segment information. The Aged Care Services segment provides care and accommodation for elderly and disadvantaged citizens through a mix of hostels, nursing homes, and a day therapy centre. The Community Services segment operates a range of accommodation and support initiatives for people who experience homelessness; providing help with issues such as general health concerns, drug and alcohol abuse, employment education and training options, social exclusion and isolation, and supporting victims of family violence. This segment also includes managing the delivery of care to the elderly in their homes, also known as the Community Aged Care Packages program, and the management of independent living units. The Disability Employment Services segment provides supported employment for people with a disability. During the financial year, the Community Aged Care Packages program and the management of independent living units were transferred from the Aged Care segment to the Community Services segment. In addition, the Disability Employment Services has been segregated from the Community Services segment into an independent segment. The prior year’s comparative figures have been reclassified to reflect this transfer and conform to changes in presentation for the current financial year. There are no inter-segment transactions. Financial information about the Company’s business segments is presented in the schedule on the following page.

34 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 22 SEGMENT INFORMATION CONTINUED Primary reporting - business segments Centres Conferences of Charity & Councils $ $

Disability Aged Community Employment Care Services Services Elimination Consolidated $ $ $ $ $

2007 REVENUE Fundraising activities

Government grants

Sale of goods

16,159,251

5,766,370

388,775

609,091

8,633

6,772,869

287,429 9,023,988

7,476,066

580,642

17,368,125

1,052,379

853,774

4,489,316

307,542

425,920

(12,695)

17,624,855

Client / resident fees

- 3,635,542

Accommodation bond retentions

307,542

82,056

473,792 1,283,960

279,817

54,826

2,449,516

Accommodation charge Interest received Funds transferred from Centres

357,120 -

6,865,994

4,590

236,664

44,082

70,756

18,662

Changes in value of investment

7,542

TOTAL SEGMENT REVENUE

16,520,961

Sundry income

14,063,711 14,765,945

9,289,504

- (6,865,994) (50,000)

324,754 7,542

1,715,142 (6,928,689)

49,426,574

OTHER INCOME Net gain/(loss) on sale of property, plant & equipment

91,340

(63,955)

(5,811)

(1,260)

(10)

20,304

561,264 1,319,246

1,071,446

51,043

3,270,834

9,960,250

950,219

RESULT SEGMENT SURPLUS/(DEFICIT)

267,835

ASSETS Segment assets

21,258,961

14,308,753 39,418,943

(351,889)

Unallocated Group assets

85,545,237 19,391,673

CONSOLIDATED TOTAL ASSETS

104,936,910

LIABILITIES Segment liabilities

1,998,991

159,445 11,393,112

1,185,655

234,935

Unallocated Group liabilities

15,621,060

Depreciation and amortisation of segment assets 529,768 Acquisition of non-current segment assets

14,620,249 1,000,811

CONSOLIDATED TOTAL LIABILITIES Write off of construction costs

(351,889)

618,730

343,033

582,536

364,108

53,474

1,872,919

193,438

617,633 6,089,593

225,200

16,918

7,568,074

2006-2007 Financial Report â&#x20AC;˘ 35

WE SEE... WE HEAR... WE HELP NOTE 22 SEGMENT INFORMATION CONTINUED Primary reporting - business segments Centres Conferences of Charity & Councils $ $ 2006 REVENUE Fundraising activities Government grants Sale of goods Client / resident fees Accommodation bond retentions Accommodation charge Interest received Funds transferred from Centres Sundry income Changes in value of investment TOTAL SEGMENT REVENUE OTHER INCOME Net gain/loss on sale of property, plant & equipment RESULT SEGMENT SURPLUS/(DEFICIT) ASSETS Segment assets Unallocated Group assets CONSOLIDATED TOTAL ASSETS LIABILITIES Segment liabilities Unallocated Group liabilities CONSOLIDATED TOTAL LIABILITIES Depreciation and amortisation of segment assets Write off of property, plant & equipment Acquisition of non-current segment assets Aged Care bed licences acquired

14,688,699 203,684 14,892,383

5,800,821 1,644,873 523,856 393,467 5,984,215 272,247 5,765 14,625,244

964,177

(42,183)

1,389,623

20,439,881

Disability Aged Community Employment Care Services Services Elimination Consolidated $ $ $ $ $

76,693 9,772,282 3,439,100 295,128 48,183 1,033,230 38,832 14,703,448

560,038 7,242,126 617,614 328,633 28,993 8,777,404

1,673 (21,908) 398,558 1,038,519 (14,575) 7,308 - (5,984,215) 2,082 (50,000)

(12,039)

(41,061)

381

869,275

769,733 2,037,714

545,309

(85,560)

4,656,819

14,718,316 34,083,935 10,167,752

992,695

(400,000)

80,002,579 23,063,815 103,066,395

(400,000)

15,741,419 1,279,960 17,021,379 1,877,782 19,725 5,146,008 640,000

1,448,139 (6,070,698)

954,781

1,618,362 12,499,528

856,417

212,331

455,709 476,075 -

368,092 573,338 7,012 1,349,202 2,777,644 - 640,000

423,192 9,996 477,202 -

57,451 2,717 65,885

SECONDARY REPORTING - GEOGRAPHIC SEGMENT St Vincent de Paul Society Victoria Inc. operates within Australia. St Vincent de Paul Aged Care and Community Services operates within Australia.

6,417,317 19,057,839 16,236,499 4,056,714 295,128 48,183 1,966,322 292,154 5,765 48,375,921

36 • St Vincent de Paul Society Victoria Inc.

WE SEE... WE HEAR... WE HELP Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2007 NOTE 23 ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations has not affected the amounts reported for the current or prior years. STANDARDS AND INTERPRETATIONS IN ISSUE BUT NOT YET ADOPTED At the date of authorisation of the financial report, a number of Standards and Interpretations were in issue but not yet effective. Initial application of the following Standards will not affect any of the amounts recognised in the financial report, but will change the disclosures presently made in relation to the Group’s financial report: Standard

Effective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year ending

AASB 7 ‘Financial Instruments: Disclosures’ and consequential 1 January 2007 amendments to other accounting standards resulting from its issue

30 June 2008

AASB 101 ‘Presentation of Financial Statements’ – revised standard

1 January 2007

30 June 2008

AASB 2007-7 ‘Amendments to Australian Accounting Standards’

1 July 2007

30 June 2008

AASB 8 ‘Operating Segments’

1 January 2009

30 June 2010

Initial application of the following Standards and Interpretations is not expected to have any material impact to the financial report of the Group: AASB Interpretation 10 ‘Interim Financial Reporting and Impairment’

1 November 2006

30 June 2008

AASB Interpretation 11 ‘AASB 2 – Group and Treasury Share Transactions’

1 March 2007

30 June 2008

AASB 2007-1 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 11’

1 March 2007

30 June 2008

AASB Interpretation 12 ‘Service Concession Arrangements’

1 January 2008

30 June 2009

AASB 2007-2 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 12’

1 January 2008

30 June 2009

AASB 2007-4 ‘Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments’

1 July 2007

30 June 2008

AASB Interpretation 13 ‘Customer Loyalty Programmes’

1 July 2008

30 June 2009

AASB Interpretation 14 ‘AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’

1 January 2008

30 June 2009

AASB 123 ‘Borrowing Costs’ – revised standard

1 January 2009

30 June 2010

AASB 2007-6 ‘Amendments to Australian Accounting Standards arising from AASB 123’

1 January 2009

30 June 2010

2006-2007 Financial Report â&#x20AC;˘ 37

WE SEE... WE HEAR... WE HELP NOTE 24 ECONOMIC DEPENDENCY A significant portion of the revenue of the subsidiary, St Vincent de Paul Aged Care and Community Services, is provided by the Commonwealth and State Governments in the form of grants and subsidies.

NOTE 25 ASSOCIATION & COMPANY DETAILS (A) THE REGISTERED OFFICE OF THE ASSOCIATION IS; St Vincent de Paul Society Victoria Inc. 43 - 45 Prospect Street, Box Hill. Victoria 3128 (B) THE PRINCIPAL PLACE OF BUSINESS IS: St Vincent de Paul Society Victoria Inc. 43 - 45 Prospect Street, Box Hill. Victoria 3128

38 â&#x20AC;˘ St Vincent de Paul Society Victoria Inc.

St Vincent de Paul Society Victoria Inc. ABN: 28 911 702 061 RN: A0042727Y 43 Prospect Street, Box Hill Vic 3128 Locked Bag 4800, Box Hill Vic 3128 Telephone: (03) 9895 5800 Facsimile: (03) 9895 5850 Email: info@svdp-vic.org.au Website: www.vinnies.org.au/vic Donation Hotline: 13 18 12

Statement by State Council In the opinion of the State Council the financial report as set out on pages 2 to 37: 1. Presents a true and fair view of the financial position of the St Vincent de Paul Society Victoria Inc. as at 30 June 2007 and its performance for the year ended on that date in accordance with Accounting Standards, Urgent Issues Group Interpretations and the Associations Incorporations Act (Vic) 1981. 2. At the date of this statement, there are reasonable grounds to believe that the St Vincent de Paul Society Victoria Inc. will be able to pay its debts as and when they become due and payable. This statement is made in accordance with a resolution of the State Council, and is signed for and on behalf of the State Council by:

Jim Grealish State President

Dated this 22nd day of September 2007

Peter Jackson Treasurer

2006-2007 Financial Report • 39

Deloitte Touche Tohmatsu ABN: 74 490 121 060 180 Lonsdale Street, Melbourne VIC 3000 GPO Box 78, Melbourne VIC 3001 Australia DX 111 Telephone: +61 (0) 3 9208 7000 Facsimile: +61 (0) 3 9208 7001 www.deloitte.com.au

Independent Auditor’s Report to the Members of St Vincent de Paul Society Victoria Inc. We have audited the accompanying financial report of St Vincent de Paul Society Victoria Inc and its consolidated entities, which comprises the balance sheet as at 30 June 2007, and the income statement, cash flow statement and statement of changes in equity for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the Statement by State Council for both St Vincent de Paul Society Victoria Inc (the Association) and its consolidated entities as set out on pages 2 to 38. The consolidated entity comprises the company and the entities it controlled at the year’s end or from time to time during the financial year. THE RESPONSIBILITY OF STATE COUNCIL FOR THE FINANCIAL REPORT State Council is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards including the Australian Accounting Interpretations and the Associations Incorporations Act (Vic) 1981. This responsibility also includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. 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. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the State Council, 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.

Liability limited by a scheme approved under Professional Standards Legislation.

40 • St Vincent de Paul Society Victoria Inc.

AUDITOR’S INDEPENDENCE DECLARATION In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies. AUDITOR’S OPINION In our opinion, the financial report gives a true and fair view, in all material respects, of the financial position of St Vincent de Paul Society Victoria Inc and its consolidated entities as at 30 June 2007, and of their financial performance, their cash flows and their changes in equity for the year ended on that date in accordance with Australian Accounting Standards including the Australian Accounting Interpretations and the Associations Incorporations Act (Vic) 1981.

DELOITTE TOUCHE TOHMATSU

Eric Passaris Partner Chartered Accountants Melbourne, 27 September 2007

WE SEE... WE HEAR... WE HELP

St Vincent de Paul Society Victoria Inc. Locked Bag 4800, Box Hill Vic 3128 43 Prospect Street, Box Hill Vic 3128 Phone: 03 9895 5800 Fax: 03 9895 5850 Email: info@svdp-vic.org.au ABN: 28 911 702 061 RN: A0042727Y

www.vinnies.org.au/vic

St Vincent de Paul Aged Care & Community Services Locked Bag 4700, Box Hill Vic 3128 43 Prospect Street, Box Hill Vic 3128 Phone: 03 9895 5900 Fax: 03 9895 5950 Email: accs@svdp-vic.org.au ABN: 530 9480 7280 ACN: 094 807 280