2009-2010 FINANCIAL Report
You should know this
St Vincent de Paul Society Victoria Inc. I 1
Contents Statement of Comprehensive Income
2
Statement of Financial Position
3
Statement of Changes in Equity
4
Consolidated Cash Flow Statement
5
Notes to the Financial Statements
6
Statement by State Council
34
Independent Auditor’s Report
35
2 I You should know this I 2009-2010 Financial Report
Statement of Comprehensive Income for the year ended 30 June 2010
Note Continuing Operations Revenue Fundraising 2(a) Government grants 2(b) Sale of goods 2(c) Other revenue 2(d) Net gain on sale of property, plant and equipment 2(e) Total Revenue
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
10,736,673 23,627,560 26,048,605 8,040,265 833,282 69,286,385
11,468,229 21,208,495 23,359,047 7,851,170 189,945 64,076,886
7,755,147 824,714 25,269,749 1,106,868 851,560 35,808,038
10,507,262 774,703 22,463,723 1,373,160 188,668 35,307,516
Cost of sales Cost of sales 3(a) Gross Surplus
(17,582,054) 51,704,331
(15,926,587) 48,150,299
(16,014,476) 19,793,562
(14,215,667) 21,091,849
Fundraising/public relations 3(b) Administration 3(c)
(1,375,563) (2,706,483) (4,082,046)
(1,167,599) (3,044,020) (4,211,619)
(1,375,563) (2,704,413) (4,079,976)
(1,167,599) (3,041,950) (4,209,549)
Total Funds Available for Client Activities
47,622,285
43,938,680
15,713,586
16,882,300
Client Services Expenses People in Need Services 3(f) Aged Care Services 3(g) Homelessness & Housing Services 3(h) Support Services 3(i)
(14,452,868) (16,797,043) (11,407,092) (3,120,394) (45,777,397)
(10,216,481) (16,099,392) (10,511,730) (3,059,598) (39,887,201)
(14,540,874) - - (3,120,394) (17,661,268)
(10,277,632) (3,059,598) (13,337,230)
(24,629)
12,320
21,752
12,320
(391,902)
(5,942,560)
-
-
Changes in fair value of financial assets designated as at 2(f) fair value through Statement of Comprehensive Income Impairment of held-to-maturity investments 3(d) carried at amortised cost Loss on sale of non-current assets classified 3(e) as held for sale Surplus/(Deficit) for year from continuing operations Other comprehensive income
-
(37,315)
-
-
1,428,357 -
(1,916,076) -
(1,925,930) -
3,557,390 -
Total Comprehensive Surplus/(Deficit) for year
1,428,357
(1,916,076)
(1,925,930)
3,557,390
The accompanying notes form part of these financial statements
St Vincent de Paul Society Victoria Inc. I 3
Statement of Financial Position as at 30 June 2010
Note Current Assets Cash and cash equivalents 5 Trade and other receivables 6 Inventories 7 Financial assets 8 Other assets 10 Total Current Assets
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
26,846,883 1,231,438 235,552 6,206,477 809,800 35,330,150
23,673,171 1,220,510 203,433 3,125,462 903,514 29,126,090
4,876,620 555,066 213,367 4,245,804 565,227 10,456,084
7,878,680 760,244 176,132 2,192,772 690,315 11,698,143
Non-Current Assets Financial assets 8 Investments in controlled entities 9 Property, plant & equipment 11 Intangible assets 12 Total Non-Current Assets
2,000,000 - 64,697,023 14,477,188 81,174,211
8,057,440 - 62,712,975 14,115,009 84,885,424
2,000,000 55,555,537 24,419,288 204,795 82,179,620
6,000,000 53,354,343 22,972,662 90,659 82,417,664
Total Assets
116,504,361
114,011,514
92,635,704
94,115,807
Current Liabilities Trade and other payables 13 Provisions 14 Other liabilities 15 Total Current Liabilities
1,997,594 4,355,776 15,053,414 21,406,784
2,787,105 4,032,320 13,539,592 20,359,017
2,384,223 1,158,457 404,353 3,947,033
2,123,572 1,044,820 396,980 3,565,372
Non-Current Liabilities Provisions 14 Total Non-Current Liabilities
580,993 580,993
564,270 564,270
153,657 153,657
89,491 89,491
Total Liabilities
21,987,777
20,923,287
4,100,690
3,654,863
Net Assets
94,516,584
93,088,227
88,535,014
90,460,944
Equity Contributed equity Reserves 16 Retained earnings Total Parent Entity Interest
100 34,029,707 60,486,777 94,516,584
100 35,944,624 57,143,503 93,088,227
- 14,702,705 73,832,309 88,535,014
17,175,775 73,285,169 90,460,944
Total Equity
94,516,584
93,088,227
88,535,014
90,460,944
The accompanying notes form part of these financial statements
4 I You should know this I 2009-2010 Financial Report
Statement of Changes in Equity for the year ended 30 June 2010
Contributed Retained Asset Equity Earnings Revaluation Reserve $ $ $ Consolidated Entity Balance at 1 July 2008 100 61,573,877 28,256,034 Deficit for the year - (1,916,076) - Total Comprehensive Deficit - (1,916,076) - Transfer to Bequest Reserve - (41,228) - Transfer to Bushfire Appeal Reserve - (2,473,070) - Balance at 30 June 2009 100 57,143,503 28,256,034 Surplus for the year Total Comprehensive Surplus Transfer to Bequest Reserve Transfer from Bushfire Appeal Reserve Balance at 30 June 2010
- 1,428,357 - 1,428,357 - (558,153) - 2,473,070
- - - -
100 60,486,777 28,256,034
Reserves (Note 16) Capital Bequest Bushfire Profits Reserve Appeal Reserve Reserve $ $ $
Fund-a- Future Reserve $
198,036 4,846,256 - - - - - - - - 41,228 - - - 2,473,070 198,036 4,887,484 2,473,070
130,000 95,004,303 - (1,916,076) - (1,916,076) - - 130,000 93,088,227
- - - -
- - - - 558,153 - - (2,473,070)
198,036 5,445,637
Total $
- 1,428,357 - 1,428,357 - - -
-
130,000 94,516,584
Parent Entity Balance at 1 July 2008 Surplus for the year Total Comprehensive Surplus Transfer to Bequest Reserve Transfer to Bushfire Appeal Reserve
- - - - -
72,366,268 13,235,238 3,557,390 - 3,557,390 - (165,419) - (2,473,070) -
- 1,302,048 - - - - - - - - 165,419 - - - 2,473,070
- 86,903,554 - 3,557,390 - 3,557,390 - - -
Balance at 30 June 2009
- 73,285,169 13,235,238
- 1,467,467 2,473,070
- 90,460,944
Deficit for the year Total Comprehensive Deficit Transfer from Bushfire Appeal Reserve
- (1,925,930) - (1,925,930) - 2,473,070
- - -
- (1,925,930) - ( 1,925,930) - -
Balance at 30 June 2010
- 73,832,309 13,235,238
The accompanying notes form part of these financial statements
- - -
- - - - - (2,473,070)
- 1,467,467
-
- 88,535,014
St Vincent de Paul Society Victoria Inc. I 5
Consolidated Cash Flow Statement for the year ended 30 June 2010
Note Cash flows From Operating Activities: Receipts from operating activities Receipts from supporters Payments to clients, suppliers and employees Interest received Net cash provided by/(used in) 19(b) operating activities
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
57,607,731 9,224,882 (65,116,505) 1,363,325 3,079,433
50,549,703 11,985,217 (56,954,534) 1,709,902 7,290,288
24,443,265 9,224,882 (36,322,070) 483,599 (2,170,324)
22,900,185 11,985,217 (29,829,026) 682,228 5,738,604
Cash flows From Investing Activities: Proceeds from sale of plant and equipment Proceeds from sale of non-current assets classified as held for sale Proceeds from investments Payment for property, plant and equipment Payments for intangible assets Payments for investments Capital contributed to subsidiaries Net cash provided (used in)/by investing activities
1,298,729 -
1,462,702 1,162,685
1,241,544 -
1,269,146 -
3,680,538 (6,070,856) (378,483) (5,429) - (1,475,501)
4,003,430 (5,613,483) (47,911) (932,690) - 34,733
3,000,000 (3,581,804) (165,588) - (1,325,888) (831,736)
500,000 (3,253,656) (47,911) (948,300) (2,480,721)
Cash flows From Financing Activities: Proceeds from residents’ accommodation bonds Repayment of residents’ accommodation bonds Net cash provided by financing activities
3,965,197 (2,395,417) 1,569,780
5,515,288 (2,681,942) 2,833,346
- - -
-
3,173,712 23,673,171
10,158,367 13,514,804
(3,002,060) 7,878,680
3,257,883 4,620,797
26,846,883
23,673,171
4,876,620
7,878,680
Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year The accompanying notes form part of these financial statements
19(a)
6 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
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 Society’s registered office and its principal place of business are as follows: Registered office Principal place of business 43-45 Prospect Street, Box Hill VIC 3128 43-45 Prospect Street, Box Hill VIC 3128 Tel: (03) 9895 5800 Tel: (03) 9895 5800 Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards and Interpretations and the requirements of the Associations Incorporations Act (Vic) 1981 and complies with other requirements of the law. The financial report covers the consolidated entity being St Vincent de Paul Society Victoria Inc., St Vincent de Paul Aged Care and Community Services and its subsidiary St Vincent de Paul Community Housing, 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 “the Group”. The parent entity is St Vincent de Paul Society Victoria Inc. 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. The financial statements were authorised for issue by State Council on 24 September 2010. Basis of measurement 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 following specific accounting policies have been consistently applied, unless otherwise stated. Functional and presentation currency The financial report is presented in Australian dollars which is the charity’s functional currency. Critical accounting judgements and key sources of estimation uncertainty In the application of the Group’s accounting policies, 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 other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing 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. 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. There were no material impacts from the adoption of these new and revised Standards and Interpretations on the financial statements. The following is a summary of the material accounting policies adopted by the Group in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
(a) Principles of consolidation The consolidated financial statements 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 Victoria Inc. Control exists where St Vincent de Paul Society Victoria 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 Victoria Inc. A list of controlled entities is contained in Note 9. All inter-entity balances and transactions between entities in the Group have been eliminated on consolidation.
St Vincent de Paul Society Victoria Inc. I 7
(b) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. All revenue is stated net of the amount of goods and services tax (GST). 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. Sale of goods Revenue from the sale of goods is recognised upon delivery of the goods to customers. Government grants Government grants are principally of a recurrent or capital nature and intended to fund ongoing operations or asset acquisitions. 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. Government grants are recognised as revenue when the entity gains control of the funds. Accommodation bonds Accommodation bonds received from incoming residents are held for each individual resident and are recognised as a current liability. Monthly retention fees are deducted from each bond account according to the statutory requirements and are recognised as revenue. Interest earned on all monies is recognised as revenue and is used in accordance with the prudential requirements. Client contributions Client contributions by clients who have the capacity to pay are recognised when the service is provided. Donations and bequests Revenue from donations and bequests is recognised when received into the Gift Account. Interest revenue 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. Revenue on sale of non-current assets Revenue on sale of non-current assets is recognised when an unconditional sale contract is signed and the risks and rewards of ownership have transferred to the purchaser.
(c) Income tax The Group is exempt under the provisions of the Income Tax Assessment Act (as amended), and as such is not subject to income taxes at this time. Accordingly, no income tax has been provided for the economic entity in these financial statements.
(d) Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to an insignificant risk of changes in value and have a maturity of three months or less at the date of acquisition. For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
(e) Financial assets Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs, except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value. Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, ‘held-to-maturity investments’, ‘loans and receivables’ and ‘term deposits’. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees on points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or, where appropriate, a shorter period.
8 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Note 1 Summary of Significant Accounting Policies (cont.) (e) Financial assets (cont.) Held to maturity investments Collateralised debt obligations, floating rate notes and units in equity linked investments with fixed or determinable payments and fixed maturity dates where that the Group has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis. Financial assets at fair value through Statement of Comprehensive Income 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 Statement of Comprehensive Income in the period in which they arise. Financial assets at fair value through Statement of Comprehensive Income include shares in listed corporations. Loans and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest income is recognised by applying the effective interest rate. Term deposits Investments in term deposits are measured on the cost basis. Impairment of financial assets Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
(f) Accommodation bonds Accommodation bonds received from incoming residents are held for each individual resident and are recognised as a current liability. Monthly retention fees are deducted from each bond account according to the statutory requirements and are recognised as revenue. Interest earned on all monies is recognised as revenue and is used in accordance with the prudential requirements.
(g) Assets held in trust The Company, Society of St Vincent de Paul (Victoria), holds various properties in trust for St Vincent de Paul Society Victoria Inc. St Vincent de Paul Victoria Endowment Fund holds various financial assets in trust for St Vincent de Paul Society Victoria Inc.
St Vincent de Paul Society Victoria Inc. I 9
(h) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except: i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows 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 within operating cash flows.
(i) Property, plant and equipment Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are carried in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Plant and equipment, leasehold improvements are stated at cost less accumulated depreciation and impairment. Construction in progress is stated at cost. Cost includes expenditure that is directly attributable to the acquisition or construction of the item. In the event that the 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 is provided on property, plant and equipment, including freehold buildings but excluding land. 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 its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straightline method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, with the effect of any changes recognised on a prospective basis. The gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. The following depreciation rates and methods are used in the calculation of depreciation: Class of property, plant and equipment Buildings Building Improvements Leasehold improvements Furniture, Plant & Equipment Computer Hardware Motor Vehicles
Depreciation rates and method 1% to 2.5% straight line 10% straight line Over the term of the lease 7% to 20% straight line 33% straight line 15% to 20% straight line
Artwork and antiquities are held at cost and not depreciated. Land is not a depreciable asset.
(j) Intangibles Intangible assets are only recognised if they meet the identifiability criteria, that it is separable from the Group and arises from contractual or other legal rights. Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over their estimated useful lives. 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.
10 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Note 1 Summary of Significant Accounting Policies (cont.) (k) 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 Statement of Comprehensive Income 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’ may be 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 Statement of Comprehensive Income.
(l) Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. 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 receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.
(n) Financial liabilities Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.
(o) Trade and other payables Trade and other payables 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.
(p) 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 Statement of Comprehensive Income 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.
St Vincent de Paul Society Victoria Inc. I 11
(q) Employee Benefits A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Sick leave is non-vesting and has not been provided for. Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to reporting date.
(r) Standards and Interpretations affecting amounts reported in the current period (and/or prior periods) The following new and revised Standards and Interpretations have been adopted in the current period and have effected the amounts reported in these financial statements. Details of other Standards and Interpretations adopted in these financial statements but that have no effect on the amounts reported are set out in paragraph (s). Standards effecting presentation and disclosure Standard AASB 101 ‘Presentation of Financial Statements’ (revised September 2007), AASB 2007-8 ‘Amendments to Australian Accounting Standards arising from AASB 101’, AASB 2007-10 ‘Further Amendments to Australian Accounting Standards arising from AASB 101’ AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments Amendments to AASB 5 Non-Current Assets Held for Sale and Discontinued Operations (adopted in advance of effective date of 1 January 2010) Amendments to AASB 107 Statement of Cash Flows (adopted in advance of effective date of 1 January 2010)
AASB 101(September 2007) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content of the financial statements. In addition, the revised Standard has required the presentation of a third statement of financial position at 1 July 2008, because the entity has applied new accounting policies retrospectively. The amendments to AASB 7 expand the disclosures required in respect of fair value measurements and liquidity risk. The Group has elected not to provide comparative information for these expanded disclosures in the current year in accordance with the transitional reliefs offered in these amendments. Disclosures in these financial statements have been modified to reflect the clarification in AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project that the disclosure requirements in Standards other than AASB 5 do not generally apply to non- current assets classified as held for sale and discontinued operations. The amendments (part of AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project) specify that only expenditures that result in a recognised asset in the statement of financial position can be classified as investing activities in the statement of cash flows. Consequently, cash flows in respect of development costs that do not meet the criteria in AASB 138 Intangible Assets for capitalisation as part of an internally generated intangible asset (and, therefore, are recognised in profit or loss as incurred) have been reclassified from investing to operating activities in the statement of cash flows. Prior year amounts have been restated for consistent presentation.
12 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Note 1 Summary of Significant Accounting Policies (cont.) (s) Standards and Interpretations adopted with no effect on financial statements The following new and revised Standards and Interpretations have also been adopted in these financial statements. Their adoption has not had any significant impact on the amounts reported in these financial statements but may affect the accounting for future transactions or arrangements. Standard AASB 2008-7 Amendments to Australian Accounting Standards - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
The amendments deal with the measurement of the cost of investments in subsidiaries, jointly controlled entities and associates when adopting A-IFRS for the first time and with the recognition of dividend income from subsidiaries in a parent’s separate financial statements.
AASB 2008-5 ‘Amendments to Australian Accounting Standards arising from the Annual Improvements Project’
In addition to the amendments to AASB 5 and AASB 107 and the amendments to AASB 117, the amendments have led to a number of changes in the detail of the Group’s accounting policies – some of which are changes in terminology only, and some of which are substantive but have had no material effect on amounts reported. Except as noted, the changes in AASB 2009-5 have been adopted in advance of their effective dates of 1 January 2010.
The initial application of the expected issue of an Australian equivalent accounting Standard/Interpretation to the following Standard/ Interpretation is not expected to have a material impact on the financial report of the Group: Standard AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project AASB 124 Related Party Disclosures (revised December 2009), AASB 2009-12 Amendments to Australian Accounting Standards AASB 9 Financial Instruments, AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9
Effective for annual reporting periods beginning on or after 1 January 2010
Expected to be initially applied in the financial year ending 30 June 2011
1 January 2011
30 June 2012
1 January 2013
30 June 2014
(t) Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
St Vincent de Paul Society Victoria Inc. I 13
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
(a) Fundraising activities Bequests Donations
2,807,567 7,929,106 10,736,673
2,777,683 8,690,546 11,468,229
2,249,415 5,505,732 7,755,147
2,350,955 8,156,307 10,507,262
(b) Government grants Councils/Conferences/Centres Community Services Aged Care Ozanam Enterprises
824,714 11,457,818 10,651,283 693,745 23,627,560
774,703 9,576,876 10,182,721 674,195 21,208,495
824,714 - - - 824,714
774,703 774,703
(c) Sale of goods Sales - Centres of Charity Sales - Groceries Sales - Piety Sales - Ozanam Enterprises
24,723,554 226,485 319,710 778,856 26,048,605
21,860,548 284,926 318,249 895,324 23,359,047
24,723,554 226,485 319,710 - 25,269,749
21,860,548 284,926 318,249 22,463,723
(d) Other revenue Client rent/fees Accommodation bonds retention Accommodation charge Interest received - other persons Sundry income
5,131,680 355,094 213,987 1,538,567 800,937 8,040,265
4,710,057 317,903 108,568 1,838,336 876,306 7,851,170
- - - 483,599 623,269 1,106,868
682,228 690,932 1,373,160
(e) Net gain on sale of property, plant and equipment
833,282
189,945
851,560
188,668
Total Revenue
69,286,385
64,076,886
35,808,038
35,307,516
(24,629)
12,320
21,752
12,320
Operating expenses (a) Cost of sales Employee salaries & benefits Cost of goods sold – purchases/materials Depreciation and amortisation Construction costs expensed Selling & Administration
7,423,726 1,347,803 54,850 11,266 8,744,409 17,582,054
6,897,068 1,250,062 56,445 - 7,723,012 15,926,587
6,206,601 1,241,690 - - 8,566,185 16,014,476
5,569,062 1,147,133 7,499,472 14,215,667
Note 2 Revenue and Other Income
Other Income (f) Changes in fair value of financial assets designated as at fair value through Statement of Comprehensive Income
Note 3 Operating Surplus/(Deficit)
14 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Operating expenses (cont.) (b) Fundraising/public relations Employee salaries & benefits Promotion Other
626,179 165,500 583,884 1,375,563
481,650 160,802 525,147 1,167,599
626,179 165,500 583,884 1,375,563
481,650 160,802 525,147 1,167,599
(c) Administration Computer maintenance Legal & Audit Employee salaries & benefits Depreciation & amortisation Insurance Motor vehicle running costs Printing/Postage/Office supplies Repairs & maintenance Telephone Training Travel & accommodation Other - includes Shared Services costs State Council
36,833 81,536 1,071,659 364,693 214,387 47,921 193,787 14,718 43,224 82,181 10,258 202,486 342,800 2,706,483
23,057 66,879 956,813 340,894 190,779 59,681 236,587 109,837 36,241 119,875 6,528 401,667 495,182 3,044,020
36,833 79,536 1,071,659 364,693 214,387 47,921 193,787 14,718 43,224 82,181 10,258 202,416 342,800 2,704,413
23,057 64,879 956,813 340,894 190,779 59,681 236,587 109,837 36,241 119,875 6,528 401,597 495,182 3,041,950
391,902
5,942,560
-
-
-
37,315
-
-
(f) People in Need Services Accommodation/Transport Cash Food vouchers Food purchases Whitegoods Utilities Medical Education Compassionate Youth Bushfire relief Overseas Bursary Sundry
1,078,946 50,806 5,502,159 1,383,078 629,326 541,100 187,615 1,146,788 15,928 94,512 2,801,287 576,558 50,754 394,011 14,452,868
923,520 37,640 4,364,911 1,320,373 417,561 401,196 149,717 656,219 10,773 43,858 1,046,326 580,717 35,359 228,311 10,216,481
1,078,946 50,806 5,502,159 1,383,078 629,326 541,100 187,615 1,146,788 15,928 94,512 2,801,287 576,558 50,754 482,017 14,540,874
923,520 37,640 4,364,911 1,320,373 417,561 401,196 149,717 656,219 10,773 43,858 1,046,326 580,717 35,359 289,462 10,277,632
Note 3 Operating Surplus/(Deficit) (cont.)
(d) Significant expense Impairment of held-to-maturity investments carried at amortised cost (e) Loss on sale of non-current assets classified as held for sale
St Vincent de Paul Society Victoria Inc. I 15
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
(g) Aged Care Services Catering & Food Cleaning Depreciation Employee salaries & benefits Occupancy Medical & other supplies Legal & Audit Motor vehicle running costs Repairs & maintenance Resident amenities Telephone Utilities Workcover Interest paid – other persons Other
777,465 325,670 1,054,970 11,175,298 122,161 369,001 162,185 48,699 445,680 243,061 37,737 470,417 251,873 51,805 1,261,021 16,797,043
786,123 329,033 991,181 10,783,089 92,252 302,891 470,673 46,046 417,328 211,066 39,412 464,653 219,140 39,055 907,450 16,099,392
- - - - - - - - - - - - - - - -
-
(h) Homelessness & Housing Services Cleaning/Waste removal Client support/Emergency accommodation Depreciation Employee salaries & benefits Occupancy Legal & Audit Motor vehicle running costs Repairs & maintenance Telephone Utilities Interest paid – other persons Other
257,255 1,287,531 498,493 7,286,019 465,964 97,928 174,514 251,482 102,356 208,540 - 777,010 11,407,092
329,033 1,314,315 404,686 6,954,260 105,490 245,694 153,127 176,579 93,180 193,542 5 541,819 10,511,730
- - - - - - - - - - - - -
-
(i) Support Services Accounting & payroll support Conference Support – employee salaries & benefits Conference Support – other State, National, International Councils Conference operating costs
196,500 1,126,221 284,871 748,000 764,802 3,120,394
190,777 1,034,042 261,611 617,566 955,602 3,059,598
196,500 1,126,221 284,871 748,000 764,802 3,120,394
190,777 1,034,042 261,611 617,566 955,602 3,059,598
67,833,399
66,005,282
37,755,720
31,762,446
Note 3 Operating Surplus/(Deficit) (cont.) Operating expenses (cont.)
16 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Operating expenses (cont.) (j) Other items (Deficit)/surplus from operating activities has been determined after: (i) Expenses Depreciation and amortisation of property, plant & equipment - Buildings - Building Improvements - Leasehold Improvements - Furniture, Plant and Equipment - Motor Vehicles - Computer Equipment
866,758 237,845 394,147 929,739 585,591 296,523
851,093 148,536 193,599 789,587 629,442 155,001
264,896 75,642 335,893 399,680 402,133 246,168
262,751 38,848 193,599 311,428 432,994 105,242
3,310,603
2,767,258
1,724,412
1,344,862
Amortisation of Computer Software Construction costs expensed Impairment of trade receivables Bad debts written off Rental expense on operating leases - Minimum lease payments Remuneration of Auditor - Audit
73,574 253,488 6,912 -
76,224 - 2,651 2,099
51,452 20,782 - -
46,309 -
3,560,504
3,006,359
3,364,700
2,856,088
101,649 101,649
95,872 95,872
39,650 39,650
44,000 44,000
7,306,730
5,950,463
5,200,996
4,291,259
(ii) Net gains Net gain on sale of property, plant and equipment Loss on sale of non-current assets classified as held for sale
833,282 -
189,945 (37,315)
851,560 -
188,668 -
833,282
152,630
851,560
188,668
1,649,200 127,000 -
1,594,760 112,800 26,400
904,700 61,000 -
854,260 60,000 -
148,500
143,528
81,500
76,883
1,924,700
1,877,488
1,047,200
991,143
Note 3 Operating Surplus/(Deficit) (cont.)
Note 4 Key Management Personnel Compensation Short-term employee benefits - Salary & Fees - Non-Cash Benefits - Other Post-employment benefits - Superannuation Total
St Vincent de Paul Society Victoria Inc. I 17
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
62,154
57,039
44,914
41,049
Note 5 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 SVDP Victoria Endowment Fund
692,280 - 801,168 110,399 4,873
455,467 145,028 1,434,175 26,946 4,873
692,280 - - - -
455,467 145,028 -
4,139,426 19,936,583 1,100,000
7,237,136 13,212,507 1,100,000
4,139,426 - -
7,237,136 -
26,846,883
23,673,171
4,876,620
7,878,680
Trade debtors (i) Allowance for doubtful debts
492,203 (32,719) 459,484
527,039 (25,807) 501,232
106,062 - 106,062
169,750 169,750
Other debtors Amount receivable from subsidiary
771,954 -
719,278 -
449,004 -
535,169 55,325
Total Current Receivables
1,231,438
1,220,510
555,066
760,244
Note 6 Trade and Other Receivables
(i) The average credit period on sale of goods and rendering of services is 30-60 days. No interest is charged on the trade receivables. An allowance has been made for estimated irrecoverable trade receivable amounts arising from the sale of goods and rendering of services, determined by reference to past default experience. Included in the Group’s trade receivable balance are debtors with a carrying amount of $48,770 (2009: $113,525) which are past due at the reporting date for which the Group has not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. The Group does not hold any collateral over these balances. The average age of these receivables is 99 days (2009: 109 days).
Ageing of past due debtors 61 - 90 days Over 90 days
56,456 25,033
51,220 88,112
- -
12,679 189
81,489
139,332
-
12,868
Movement in the allowance for doubtful debts Balance at the beginning of the year Impairment losses recognised on receivables Impairment losses written off against allowance for doubtful debts Impairment losses reversed
25,807 14,500 (753)
23,156 4,870 -
- - -
-
(6,835)
(2,219)
-
-
Balance at the end of the year
32,719
25,807
-
-
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, State Council believes that there is no further credit provision required in excess of the allowance for doubtful debts.
18 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
235,552
203,433
213,367
176,132
Held-to-maturity investments carried at amortised cost: Current Medium term notes
4,932,690
2,932,690
4,000,000
2,000,000
Non-Current Medium term notes Collateralised debt obligations Units in equity linked investment
2,000,000 - - 2,000,000
6,000,000 339,000 1,718,440 8,057,440
2,000,000 - - 2,000,000
6,000,000 6,000,000
Financial assets carried at fair value through Statement of Comprehensive Income: Current Shares in listed corporations
1,273,787
192,772
245,804
192,772
8,206,477
11,182,902
6,245,804
8,192,772
Disclosed in the financial statements as: Current financial assets Non-current financial assets
6,206,477 2,000,000
3,125,462 8,057,440
4,245,804 2,000,000
2,192,772 6,000,000
8,206,477
11,182,902
6,245,804
8,192,772
Note 7 Inventories Finished goods
Note 8 Other Financial Assets
St Vincent de Paul Society Victoria Inc. I 19
Note 8 Other Financial Assets (cont.) Maturity Date Medium term notes Floating rate note CFS Retail Property Trust (i) 31 Jul 2009 Floating rate note CBA Subordinate Debt (i) 16 Feb 2010 Floating rate note CBA Subordinate Debt (i) 10 Nov 2010 Floating rate note Colonial Finance (i) 24 Mar 2011 Floating rate note HSBC (i) 19 May 2011 Floating rate note Macquarie (i) 31 May 2012
- - 1,000,000 1,000,000 - - 1,000,000 1,000,000 1,000,000 932,690 1,000,000 932,690 3,000,000 3,000,000 3,000,000 3,000,000 1,000,000 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 2,000,000 2,000,000
7,000,000 6,932,690 9,000,000 8,932,690 6,000,000 6,000,000 8,000,000 8,000,000
Collateralised debt obligations Corsair Pure (CBA) (ii) Prelude Euro CDO (ANZ) (iii)
20 Jun 2014 30 Jun 2012
3,000,000 -
- 3,000,000 - 3,000,000
339,000 -
- -
- -
- -
-
3,000,000
- 6,000,000
339,000
-
-
-
-
30 Mar 2013
-
- 2,000,000
1,718,440
-
-
-
-
-
- 2,000,000 1,718,440
-
-
-
-
Equity linked investment Asprit II (ANZ) (iv)
Consolidated Entity Consolidated Entity 2010 2009 Units $ Units $
Parent Entity 2010 Units - - - 3,000,000 1,000,000 2,000,000
$
- - - 3,000,000 1,000,000 2,000,000
Parent Entity 2009 Units
$
1,000,000 1,000,000 1,000,000 1,000,000 - 3,000,000 3,000,000 1,000,000 1,000,000 2,000,000 2,000,000
(i) The Group holds medium term notes returning a variable rate of interest. The weighted average rate on these securities is 5.14% (2009: 3.44%). The notes are redeemable at face value at maturity dates ranging between 1 to 24 months from reporting date. (ii) Corsair Pure This collateralised debt obligation was re-stated to its revised amortised cost at 30 June 2010. The instrument is linked to an underlying portfolio of financial institutions and other stocks worldwide. At the time of the initial investment, the portfolio had a AAA credit rating and was paying a coupon. Due to severity of the financial markets downturn in late 2008/2009, a large number of underlying stocks in the portfolio had lost their AAA credit ratings and had a number of credit default events. The valuation of the collateralised debt obligation ultimately depends on the number of credit defaults in the underlying portfolio, credit spreads and credit ratings. If a certain number of credit defaults is progressively reached within the portfolio, the instrument is affected through the principal becoming progressively impaired and/or the coupon payments ceasing. Based on the number of credit defaults in the underlying portfolio and other valuation considerations, the instrument’s principal has been fully impaired by $3,000,000 and the maturity date extended from 20 June 2011 to 20 June 2014. However, the instrument continues to pay coupon interest based on the remaining face value which was reduced to $1,393,282 on 21 June 2010. The remaining face value is the amount of the original investment less losses from underlying credit events on the PURE reference portfolio up to that date. Future losses from underlying credit events will affect the remaining face value and hence, coupon amounts. The ultimate partial or full recovery of the principal at maturity will depend on the underlying portfolio performance. Such recovery would represent a reversal of the impairment loss through profit and loss. (iii) Prelude Euro Based on the number of credit defaults in the underlying portfolio and other valuation considerations, the instrument’s principal was fully impaired by $3,000,000. The instrument ceased paying coupon interest as of 1 July 2008. The Prelude Euro collateralised debt obligation was redeemed on 18 February 2010 for a settlement consideration of $15,000. (iv) Asprit II The principal of the instrument was guaranteed by the issuer (Bank of Australia and New Zealand - credit rating AA-). Due to the underlying portfolio performance, the instrument ceased paying coupon interest as of 1 July 2008 and the instrument was impaired by $281,560 at 30 June 2009. The Asprit II equity linked investment was redeemed on 7 April 2010 for a settlement consideration of $1,665,538.
20 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
-
-
55,555,537
53,354,343
Note 9 Investments in Controlled Entities Non-Current Investments in controlled entities Parent Entity: St Vincent de Paul Society Victoria Inc.
Country of Incorporation
Controlled entities of St Vincent de Paul Society Victoria Inc. St Vincent de Paul Aged Care and Community Services Society of St Vincent de Paul (Victoria) St Vincent de Paul Victoria Endowment Fund St Vincent de Paul Community Housing
Percentage Owned
Australia
-
-
Australia Australia Australia Australia
100% 100% 100% 100%
100% 100% 100% -
During the financial year: • St Vincent de Paul Society Victoria Inc. contributed a further $1,674,642 (2009: $1,047,834) to the St Vincent de Paul Victoria Endowment Fund; • St Vincent de Society Victoria Inc. received interest income of $130,174 (2009: $99,534) from St Vincent de Paul Victoria Endowment Fund; and • St Vincent de Paul Society Victoria Inc. contributed $656,726 (2009: Nil) to St Vincent de Paul Aged Care and Community Services to fund the development of 9 independent living units in Red Cliffs. The purpose of the St Vincent de Paul Victoria Endowment Fund is to provide a separate entity into which a percentage of the 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. or its controlled entities. It is the trustee’s intention that the principal of each bequest will remain within the fund in perpetuity.
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
GST recoveries Prepayments
249,682 560,118
364,227 539,287
249,682 315,545
364,227 326,088
809,800
903,514
565,227
690,315
Note 10 Other Assets – Current
St Vincent de Paul Society Victoria Inc. I 21
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Land At cost
22,247,852
22,089,125
8,966,841
8,808,114
Buildings At cost Buildings under construction Less accumulated depreciation
35,160,328 1,356,916 (5,264,139) 31,253,105
33,850,598 1,355,826 (4,420,130) 30,786,294
11,278,295 417,269 (2,020,580) 9,674,984
10,121,409 417,068 (1,778,433) 8,760,044
Building Improvements At cost Less accumulated depreciation
2,579,178 (549,499) 2,029,679
1,864,620 (311,654) 1,552,966
846,775 (129,712) 717,063
510,169 (54,070) 456,099
Leasehold Improvements At cost Less accumulated depreciation
2,693,058 (656,854) 2,036,204
1,220,659 (262,707) 957,952
1,831,517 (575,912) 1,255,605
1,181,490 (240,019) 941,471
Furniture, Plant & Equipment At cost Less accumulated depreciation
8,627,912 (4,252,436) 4,375,477
7,362,555 (3,327,888) 4,034,667
3,324,367 (1,401,630) 1,922,737
2,648,222 (1,004,151) 1,644,071
Motor Vehicles At cost Less accumulated depreciation
5,415,737 (3,205,911) 2,209,826
5,464,941 (2,799,687) 2,665,254
3,871,576 (2,450,927) 1,420,649
4,003,463 (2,195,337) 1,808,126
Computer Hardware At cost Less accumulated depreciation
1,417,891 (875,991) 541,900
1,203,205 (579,468) 623,737
1,035,785 (576,831) 458,954
882,945 (330,663) 552,282
Artwork & Antiquities At cost
2,980
2,980
2,455
2,455
64,697,023
62,712,975
24,419,288
22,972,662
Note 11 Property, Plant & Equipment
22 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Note 11 Property, Plant & Equipment (cont.) 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 and in the following page. Total Land Carrying amount at beginning of financial year Additions Disposals
22,089,125 314,727 (156,000)
22,439,125 - (350,000)
8,808,114 314,727 (156,000)
9,158,114 (350,000)
Carrying amount at end of financial year
22,247,852
22,089,125
8,966,841
8,808,114
Total Buildings Carrying amount at beginning of financial year Additions Transfer of Capital WIP Disposals Construction costs expensed Less depreciation
30,786,294 2,628,145 (959,838) (81,250) (253,488) (866,758)
31,092,015 1,918,939 (1,189,893) (183,674) - (851,093)
8,760,044 1,281,868 - (81,250) (20,782) (264,896)
9,164,332 1,032,443 (990,306) (183,674) (262,751)
Carrying amount at end of financial year
31,253,105
30,786,294
9,674,984
8,760,044
Total Building Improvements Carrying amount at beginning of financial year Additions Transfer from Capital WIP Less depreciation
1,552,966 637,137 77,421 (237,845)
1,019,636 475,097 206,769 (148,536)
456,099 336,606 - (75,642)
296,097 190,890 7,960 (38,848)
Carrying amount at end of financial year
2,029,679
1,552,966
717,063
456,099
Total Leasehold Improvements Carrying amount at beginning of financial year Additions Transfer from Capital WIP Less depreciation
957,952 651,789 820,610 (394,147)
391,040 264,034 496,477 (193,599)
941,471 650,027 - (335,893)
381,886 257,485 495,699 (193,599)
Carrying amount at end of financial year
2,036,204
957,952
1,255,605
941,471
Total Furniture, Plant & Equipment Carrying amount at beginning of financial year Additions Transfer from Capital WIP Disposals Less depreciation
4,034,667 1,266,211 4,537 (199) (929,739)
3,590,983 1,117,806 118,213 (2,748) (789,587)
1,644,071 678,545 - (199) (399,680)
1,275,972 561,314 118,213 (311,428)
Carrying amount at end of financial year
4,375,477
4,034,667
1,922,737
1,644,071
St Vincent de Paul Society Victoria Inc. I 23
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Total Motor Vehicles Carrying amount at beginning of financial year Additions Disposals Less depreciation
2,665,254 358,161 (227,998) (585,591)
2,454,967 1,576,065 (736,336) (629,442)
1,808,126 167,191 (152,535) (402,133)
1,786,383 1,001,540 (546,803) (432,994)
Carrying amount at end of financial year
2,209,826
2,665,254
1,420,649
1,808,126
Total Computer Hardware Carrying amount at beginning of financial year Additions Transfer from Capital WIP Less depreciation
623,737 214,686 - (296,523)
151,217 259,087 368,434 (155,001)
552,282 152,840 - (246,168)
81,561 207,529 368,434 (105,242)
Carrying amount at end of financial year
541,900
623,737
458,954
552,282
Total Artwork & Antiquities Carrying amount at beginning of financial year Additions
2,980 -
525 2,455
2,455 -
2,455
Carrying amount at end of financial year
2,980
2,980
2,455
2,455
Total Property, Plant & Equipment Carrying amount at beginning of financial year Additions Disposals Transfer to Intangibles Construction costs expensed Less depreciation
62,712,975 6,070,856 (465,447) (57,270) (253,488) (3,310,603)
61,139,507 5,613,484 (1,272,758) - (2,767,258)
22,972,662 3,581,804 (389,984)
22,144,345 3,253,656 (1,080,477)
(20,782) (1,724,412)
(1,344,862)
Carrying amount at end of financial year
64,697,023
62,712,975
24,419,288
22,972,662
Note 11 Property, Plant & Equipment (cont.) Reconciliations (cont.)
An independent valuation of land and buildings is performed every three years. The latest valuation was performed in the 2009 financial year by Charter Keck Cramer. In accordance with the accounting policy in Note 1(i), land and buildings have not been revalued to the current market value.
24 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Aged Care Bed Licences Aged Care Bed Licences at cost
14,000,000
14,000,000
-
-
Computer Software & IT Development At cost Less accumulated amortisation
1,227,445 (750,257) 477,188
791,692 (676,683) 115,009
341,715 (136,920) 204,795
176,127 (85,468) 90,659
Total Intangibles
14,477,188
14,115,009
204,795
90,659
Note 12 Intangibles
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 and end of financial year 14,000,000 14,000,000 - Total Computer Software & IT Development Carrying amount at beginning of financial year Additions Transfer from Capital WIP Less amortisation
115,009 378,483 57,270 (73,574)
143,322 47,911 - (76,224)
90,659 165,588 - (51,452)
89,057 47,911 (46,309)
Carrying amount at end of financial year
477,188
115,009
204,795
90,659
Total Intangibles Carrying amount at beginning of financial year Additions Transfer from Capital WIP Disposals Less amortisation
14,115,009 378,483 57,270 - (73,574)
14,143,322 47,911 - - (76,224)
90,659 165,588 - - (51,452)
89,057 47,911 (46,309)
Carrying amount at end of financial year
14,477,188
14,115,009
204,795
90,659
St Vincent de Paul Society Victoria Inc. I 25
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Unsecured: Trade creditors (i) Accrued creditors Other creditors Amount payable to subsidiary GST payable
787,003 590,241 552,041 - 68,309
1,776,209 489,516 377,772 - 143,608
345,168 241,325 274,971 1,522,759 -
642,946 197,448 218,365 948,300 116,513
1,997,594
2,787,105
2,384,223
2,123,572
Note 13 Trade and Other Payables
(i) The average credit period on purchases of goods is 30 days. No interest is charged on the trade payables. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.
Note 14 Provisions Current Employee benefits (i) Non-Current Employee benefits
(a)
4,355,776
4,032,320
1,158,457
1,044,820
(a)
580,993
564,270
153,657
89,491
(a) Aggregate Employee Entitlement Liability
4,936,769
4,596,590
1,312,114
1,134,311
(i) The current provision of employee benefits includes $3,648,585 (parent entity: $1,158,459) of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2009: $3,424,539 and $1,044,820 for the Group and for the parent entity respectively).
Note 15 Other Liabilities Unsecured: Refundable accommodation bonds Grants in advance Prepaid income Other liabilities
13,203,301 1,630,658 204,353 15,102
12,072,065 1,301,276 146,980 19,271
- - 404,353 -
396,980 -
15,053,414
13,539,592
404,353
396,980
Note 16 Reserves Nature and purpose of reserves as disclosed in the Statement of Changes in Equity: Asset revaluation reserve $28,256,034 (2009: $28,256,034) 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 $198,036 (2009: $198,036) Represents the capital value of land and building sold. Fund-a-Future reserve $130,000 (2009: $130,000) Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24. Bequest reserve $5,445,637 (2009: $4,887,484) 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. Bushfire Appeal reserve Nil (2009: $2,473,070) Represented funds set aside to assist Bushfire survivors as they return to re-establish their homes and livelihood within their communities. During the previous financial year, St Vincent de Paul Society Victoria Inc. raised $3.5 million in donations and received another $200,000 from government grants, a total of $3.7 million. The balance of $2.5 million remaining at 30 June 2009 has been spent.
26 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
Commitments in relation to leases contracted for at the reporting date but not recognised as assets receivable: Within one year Later than one year but not later than 5 years Later than five years
33,159 83 -
- - -
83,159 150,083 -
50,000 200,000 -
33,242
-
233,242
250,000
Representing Non-cancellable operating lease
33,242
-
233,242
250,000
Note 17 Lease Commitments Receivable
The property leases are non cancellable leases spanning various terms with rental received monthly in advance.
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: Operating Leases Not later than one year Later than one year but not later than 5 years Later than five years
3,606,750 7,672,748 3,482,456
3,135,317 7,663,187 1,783,081
3,465,742 7,498,093 3,481,733
3,003,898 7,355,028 1,782,345
14,761,954
12,581,585
14,445,568
12,141,272
The property and equipment leases are non cancellable leases spanning various terms with rental paid monthly and quarterly in advance. This covers property leases for Centres and Community Services and equipment leases for the Group.
(b) Capital Commitments Capital expenditure commitments contracted for: Purchase of property Building works and refurbishment projects
864,000 1,472,324
- -
- -
-
2,336,324
-
-
-
2,336,324
-
-
-
Payable Not later than one year
St Vincent de Paul Society Victoria Inc. I 27
Consolidated Entity 2010 $
Consolidated Entity 2009 $
Parent Entity 2010 $
Parent Entity 2009 $
62,154 1,608,720 25,176,009
57,039 2,066,489 21,549,643
44,914 692,280 4,139,426
41,049 600,495 7,237,136
26,846,883
23,673,171
4,876,620
7,878,680
1,428,357
(1,916,076)
(1,925,930)
3,557,390
3,384,177 253,488 (833,282) - 391,902
2,843,482 - (189,945) 37,315 5,942,560
1,775,864 20,782 (851,560) - -
1,391,171 (188,668) -
24,629
(12,630)
(21,752)
(12,630)
(15,000)
-
-
-
(1,100,216) (336,805) (131,568) 29,826
(156,228) (306,800) (166,710) 38,525
(1,100,216) - - -
(156,228) -
Changes in assets and liabilities (Increase)/decrease in receivables Increase in inventories (Increase)/decrease in prepayments (Decrease)/increase in payables and other liabilities Increase in provisions
(10,928) (32,119) (20,831) (292,379) 340,182
207,773 (64,749) (210,632) 1,001,716 242,687
205,178 (37,235) 10,543 (423,794) 177,796
362,209 (57,222) (49,405) 853,162 38,825
Cash Flows from operations
3,079,433
7,290,288
(2,170,324)
5,738,604
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 Statement of Financial Position as follows: Cash on hand Cash deposits with banks Bank term deposits Balance per Cash Flow Statement (b) Reconciliation of cash flow from operations with operating deficit/surplus Operating surplus/(deficit) Non-cash flows and non-operating activities in operating deficit/surplus Depreciation and amortisation Construction costs expensed Net gain on sale of property, plant and equipment Loss on sale of non-current assets classified as held for sale Impairment of held-to-maturity investments carried at amortised cost Change in fair value of financial assets designated as at fair value through profit or loss Gain on disposal of held-to-maturity investments carried at amortised cost Bequests received in the form of shares in listed corporations Residents’ accommodation bond retentions Interest deducted from residents’ accommodation bond Interest paid and payable on refund of residents’ accommodation bond
Note 20 Financial Instruments (a) Financial risk management The Group’s financial instruments consist mainly of deposits with banks, short-term investments, bank notes, equity linked 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 and Community Services Board as well as external members selected for their particular financial and legal expertise.
28 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Note 20 Financial Instruments (cont.) (a) Financial risk management (cont.) (i) Treasury risk management The Finance Committee has 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 meets on a regular basis to monitor movement in the financial investments and make recommendations to State Council and the Board of Directors. (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 Ultimate responsibility for liquidity risk management rests with the State Council and the Board of Directors. The Finance Committee has built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. For further details on liquidity risk, refer to Note 20(c). Price risk The Group is not exposed to any material commodity price risk. Other price risk The Group is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments. The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the reporting period. If equity prices had been 5% higher or lower, the Group’s net surplus would respectively increase or decrease by approximately $64,000 (2009: net deficit would respectively decrease or increase by approximately $10,000). The parent entity’s net deficit would respectively decrease or increase by approximately $12,000 (2009: net surplus would respectively increase or decrease by approximately $10,000). Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the Group uses publicly available financial information and its own trading record to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the Finance Committee annually. Trade receivables consist of a large number of customers, including Aged Care residents, Community Services clients and other customers spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable. The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. 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.
(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. Interest rate sensitivity The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative and non-derivative instruments at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates. At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant, the Group’s net surplus would respectively increase or decrease by approximately $176,000 (2009: net deficit would respectively decrease or increase by approximately $173,000). The parent entity’s net deficit would respectively decrease or increase by approximately $54,000 (2009: net surplus would respectively increase or decrease by approximately $79,000). This is mainly attributable to the Group’s exposure to interest rates on its financial instruments.
St Vincent de Paul Society Victoria Inc. I 29
Financial Weighted average Floating Fixed interest rate maturing in: Non Interest Total carrying amount Instruments effective interest rate Interest Rate bearing as per the statement of financial position 1 year or less Over 1 to 5 years 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 $ $ $ $ $ $ $ $ $ $ (i) Financial Assets Cash -SVDP Inc. 2.10% 3.11% 2,044,566 5,143,072 2,094,860 2,094,064 737,194 641,544 4,876,620 7,878,680 -ACCS 5.21% 3.40% - - 20,730,664 14,643,200 24,328 19,472 20,754,992 14,662,672 -SVDP VIC Endowment Fund 4.87% 4.15% - - 1,210,399 1,126,946 - - 1,210,399 1,126,946 -Society of SVDP (Victoria) - - - - - - 4,873 4,873 4,873 4,873 Trade and Other Receivables -SVDP Inc. 555,066 704,919 555,066 704,919 -ACCS 698,126 525,218 698,126 525,218 -SVDP VIC Endowment Fund 10,966 16,180 10,966 16,180 Other Financial Assets -SVDP Inc. -ACCS -SVDP VIC Endowment Fund
5.15% - 5.10%
3.44% 6,000,000 8,000,000 245,804 0.68% - 2,057,440 - 3.39% 932,690 932,690 1,027,983
Total Financial Assets 8,977,256 16,133,202 24,035,923 17,864,210
-
192,772 6,245,804 8,192,772 - - 2,057,440 - 1,960,673 932,690
- 3,304,340 2,104,978 36,317,519 36,102,390
(ii) Financial Liabilities Trade and Other Payables -SVDP Inc. 861,464 1,175,272 861,464 1,175,272 -ACCS 1,134,130 1,609,833 1,134,130 1,609,833 -SVDP VIC Endowment Fund 2,000 2,000 2,000 2,000 Refundable Accommodation Bonds -ACCS 13,203,301 12,072,066 13,203,301 12,072,066 Total Financial Liabilities
-
-
-
-
-
- 15,200,895 14,859,171 15,200,895 14,859,171
Non-interest bearing other financial assets consist of shares in listed entities, carried at fair value.
(c) Liquidity Risk The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Consolidated Weighted average interest rate % 2010 Non-interest bearing -
Less than 1 year $
1-5 years $
5+ years $
15,200,895
-
-
2009 Non-interest bearing
-
14,859,171
-
-
Weighted average interest rate % 2010 Non-interest bearing -
Less than 1 year $
1-5 years $
5+ years $
2,384,223
-
-
2,123,572
-
-
Parent Entity
2009 Non-interest bearing
-
30 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Note 20 Financial Instruments (cont.) (c) Liquidity Risk (cont.) The following tables detail the Group’s remaining contractual maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group anticipates that the cash flow will occur in a different period. Consolidated Weighted average interest rate % 2010 Non-interest bearing - Variable interest rate instruments 5.14% Fixed interest rate instruments 5.10%
Less than 1 year $
1-5 years $
5+ years $
2,276,356 5,279,043 22,885,214
- 2,096,045 3,914,320
-
30,440,613
6,010,365
-
- 2.90% 3.35%
2,104,978 2,390,575 23,724,217
- 9,435,630 -
-
28,219,770
9,435,630
-
Weighted average interest rate % 2010 Non-interest bearing - Variable interest rate instruments 5.15% Fixed interest rate instruments 4.76%
Less than 1 year $
1-5 years $
5+ years $
1,538,063 4,261,711 4,166,447
- 2,096,044 -
-
9,966,221
2,096,044
-
2009 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments
- 3.44% 3.11%
1,539,235 2,232,093 7,258,017
- 6,241,244 -
-
11,029,346
6,241,244
-
2009 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments
Parent Entity
d) Fair Values The 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 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 fair values and carrying amounts of the Group’s financial assets and financial liabilities are disclosed in the Statement of Financial Position and in the notes to the financial statements. Aggregate fair values and carrying amounts of the Group’s financial assets and financial liabilities at balance date
St Vincent de Paul Society Victoria Inc. I 31
Note 20 Financial Instruments (cont.) (d) Fair Values (cont.) Consolidated Financial assets Cash Trade and other receivables Other financial assets
2010 Carrying Amount $ 26,846,883 1,264,158 8,206,477 36,317,518
26,846,883 1,231,439 7,070,694 35,149,016
23,673,171 1,246,317 11,182,902 36,102,390
23,673,171 1,220,510 10,681,332 35,575,013
Financial liabilities Trade and other payables Refundable accommodation bonds
1,997,594 13,203,301 15,200,895
1,997,594 13,203,301 15,200,895
2,787,105 12,072,066 14,859,171
2,787,105 12,072,066 14,859,171
Parent Entity Financial assets Cash Trade and other receivables Other financial assets
4,876,620 555,066 6,245,804 11,677,490
4,876,620 555,066 6,068,024 11,499,710
7,878,680 760,244 8,192,772 16,831,696
7,878,680 760,244 7,121,834 15,760,758
Financial liabilities Trade and other payables
861,464 861,464
861,464 861,464
1,175,272 1,175,272
1,175,272 1,175,272
Fair Value $
2009 Carrying Amount $
Fair Value $
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. During the financial year: • St Vincent de Paul Society Victoria Inc. received from St Vincent de Paul Aged Care and Community Services $50,000 (2009: $50,000) for the rental of the office premises at Prospect Street, Box Hill; • St Vincent de Paul Sociey Victoria Inc. received from St Vincent de Paul Aged Care and Community Services $72,033 (2009: paid $219,252) for the management of shared services; and • St Vincent de Paul Society Victoria Inc. purchased goods totalling $88,006 (2009: $61,151) from St Vincent de Paul Aged Care and Community Services. The amount payable to St Vincent de Paul Aged Care and Community Services is $54,489 (2009: receivable $55,325). During the financial year: • St Vincent de Paul Society Victoria Inc. contributed a further $1,674,642 (2009: $1,047,834) to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9; and • St Vincent de Paul Society Victoria Inc. received interest income of $130,174 (2009: $99,534) from St Vincent de Paul Victoria Endowment Fund. The amount payable to St Vincent de Paul Victoria Endowment Fund is $1,468,270 (2009: $948,300).
Note 22 Segment Reporting St Vincent de Paul Society Victoria 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 entity 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 entity reports its primary segment information. The Residential Aged Care Services segment provides care and accommodation for elderly citizens and disadvantaged citizens through a mix of hostels and nursing homes. 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.
32 I You should know this I 2009-2010 Financial Report
Notes to the Financial Statements for the year ended 30 June 2010
Note 22 Segment Reporting (cont.) St Vincent de Paul Aged Care and Community Services (cont.) This segment also includes managing the delivery of care to the elderly in their homes, also known as the Community Aged Care Packages program, the management of independent living units and a day therapy centre. The Disability Employment Services segment provides supported employment for people with a disability. There are no inter-segment transactions. Financial information about the entity’s business segments is presented in the schedule below and on the following page.
St Vincent de Paul Community Housing For management purposes, the entity has one major operating division, being Community Housing. The entity undertakes activities to promote the relief of poverty, sickness or the needs of the aged by providing affordable rental housing and associated services to persons in need of housing. Financial information about the entity’s business segment is presented in the schedule below and on the following page. Primary reporting – business segments Centres of Conferences Residential Community Community Disability Elimination Consolidated Charity & Councils Aged Care Services Housing Employment Services $ $ $ $ $ $ $ $ 2010 Revenue Fundraising activities - 7,755,147 1,241,437 1,590,957 - 149,132 10,736,673 Government grants - 824,714 11,457,818 9,628,348 1,022,935 693,745 23,627,560 Sale of goods 24,723,554 546,195 - - - 866,862 (88,006) 26,048,605 Client / resident fees - - 4,383,660 748,020 - - 5,131,680 Accommodation bond retentions - - 355,094 - - - 355,094 Accommodation charge - - 213,987 - - - 213,987 Interest received - 483,599 871,125 161,486 - 22,357 1,538,567 Sundry income - 753,443 11,332 1,172,627 1,852 8,503 (1,146,820) 800,937 Net (loss)/gain on sale of 868,868 (17,308) (10,482) (7,423) - (373) 833,282 property, plant & equipment Total segment revenue 25,592,422 10,345,790 18,523,971 13,294,015 1,024,787 1,740,226 (1,234,826) 69,286,385 Other Income Changes in value of investment
-
(24,629)
-
-
-
-
(24,629)
Result Segment surplus/(deficit) 289,401 (2,133,607) 1,661,785 1,836,952 - 165,728 1,820,259 Unallocated deficit (391,902) Consolidated total deficit 1,428,357 Assets Segment assets 24,213,004 17,522,341 41,254,483 11,842,800 56,650 946,310 (1,722,756) 94,112,832 Unallocated Group assets 22,391,529 Consolidated total assets 116,504,361 Liabilities Segment liabilities 1,690,702 2,411,987 15,838,401 2,593,089 37,010 249,420 (1,722,756) 21,097,853 Unallocated Group liabilities 889,924 Consolidated total liabilities 21,987,777 Depreciation and amortisation 1,251,281 524,583 1,054,970 498,493 - 54,850 3,384,177 of segment assets Acquisition of non-current 2,451,882 1,295,510 782,218 1,342,587 - 46,173 5,918,370 segment assets Unallocated Group acquisition 530,969 of non-current assets 6,449,339
St Vincent de Paul Society Victoria Inc. I 33
Centres of Conferences Residential Community Community Disability Elimination Consolidated Charity & Councils Aged Care Services Housing Employment Services $ $ $ $ $ $ $ $ 2009 Revenue Fundraising activities - 10,892,762 193,083 351,632 - 30,752 11,468,229 Government grants - 774,703 10,182,721 9,576,876 - 674,195 21,208,495 Sale of goods 21,915,536 548,187 - - 956,475 (61,151) 23,359,047 Client / resident fees - - 4,007,869 701,888 - 300 4,710,057 Accommodation bond retentions - - 317,903 - - - 317,903 Accommodation charge - - 108,568 - - - 108,568 Interest received 273,559 508,203 863,191 167,497 - 25,886 1,838,336 Funds transferred from Centres - 7,300,500 - - - - (7,300,500) Sundry income 313,294 377,638 16,442 191,722 - 27,210 (50,000) 876,306 Net (loss)/gain on sale of (204,643) 393,311 (11,204) 13,615 - (1,134) 189,946 property, plant & equipment Total segment revenue 22,297,746 20,795,304 15,678,574 11,003,230 - 1,713,684 (7,411,651) 64,076,887 Other Income Changes in value of investment
-
12,320
-
-
-
-
12,320
Result Segment (deficit)/surplus (1,047,334) 5,087,688 (485,037) 472,189 - (1,022) 4,026,484 Unallocated deficit (5,942,560) Consolidated total deficit (1,916,076) Assets Segment assets 26,214,628 17,575,825 41,641,772 11,007,633 - 995,478 (1,253,625) 96,181,711 Unallocated Group assets 17,829,803 Consolidated total assets 114,011,514 Liabilities Segment liabilities 1,874,833 1,782,032 14,452,181 2,079,073 - 235,021 (1,253,625) 19,169,515 Unallocated Group liabilities 1,753,772 Consolidated total liabilities 20,923,287 Depreciation and amortisation of segment assets Loss on sale of non-current assets classified as held for sale Acquisition of non-current segment assets
933,377
457,794
991,181
404,686
-
56,444 2,843,482
-
-
37,315
-
-
-
37,315
2,115,873
1,185,693
914,160
1,386,678
-
58,990
5,661,394
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. St Vincent de Paul Community Housing operates within Australia.
Note 23 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 24 Remuneration of Auditors The remuneration of auditors is disclosed in Note 3. No other services were provided during the year. The auditor of St Vincent de Paul Society Victoria Inc. is Deloitte Touche Tohmatsu.
Note 25 Subsequent Events Subsequent to year end, the purchase of property disclosed in Note 18(b) was settled on 30 July 2010. No other matter or circumstance has arisen since 30 June 2010 that has significantly affected, or may significantly affect: (a) the consolidated operations in future financial years, or (b) the results of those operations in future financial years, or (c) the consolidated state of affairs in future financial years.
34 I You should know this I 2009-2010 Financial Report
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
Statement by State Council In the opinion of the State Council the financial report as set out on pages 2 to 33: 1. Presents a true and fair view of the financial position of the St Vincent de Paul Society Victoria Inc. as at 30 June 2010 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:
Tony Tome State President
Dated this 24th day of September 2010
John Hayes Treasurer
St Vincent de Paul Society Victoria Inc. I 35
Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia Tel: +61 (0) 3 9671 7000 Fax: +61 (03) 9671 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 the St Vincent de Paul Society Victoria Inc., which comprises the statement of financial position as at 30 June 2010, and the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the Statement by State Council of the consolidated entity comprising the entity and the entities it controlled at the year’s end or from time to time during the financial year as set out on pages 2 to 34.
The Responsibility of State Council for the Financial Report The State Council of the entity are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations). 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. Member of Deloitte Touche Tohmatsu
36 I You should know this I 2009-2010 Financial Report
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 of the St Vincent de Paul Society Victoria Inc. presents a true and fair view, in all material respects, the entity’s and consolidated entity’s financial position as at 30 June 2010, 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).
Deloitte Touche Tohmatsu
Alison Brown Partner Chartered Accountants
Melbourne, 24 September 2010
How You Can Help Making a financial donation You can help the St Vincent de Paul Society help others by:
Credit card donations can be made by visiting our website or calling the donation hotline. All donations of $2 or more are tax deductible.
Online www.vinnies.org.au or call 13 18 12
Making regular financial donations Regular donations to assist the work of the Society can be made by credit card or direct debit from your bank account. Donating this way reduces Society expenses and can be arranged by visiting our website or calling the office. All donations of $2 or more are tax deductible.
Online www.vinnies.org.au or call 03 9895 5800
Making a Bequest Consider remembering the St Vincent de Paul Society in your Will. All non-specified bequests are invested in the St Vincent de Paul Victoria Endowment Fund, providing much needed funds for special projects and initiatives. The Society is able to assist thousands of people because of the generosity of those who have remembered us in their Will. For an information booklet or to speak to our Bequest Coordinator.
Call 03 9895 5800
Volunteering your time If you are interested in becoming a member of a conference or volunteering your time to assist people in your community through any of the Society’s services.
Call 03 9895 5800
Donating goods Donations of quality clothing, furniture and household goods can be made to any Vinnies Centre.
Call 1800 621 349
St Vincent de Paul Society Victoria Inc.
VincentCare Victoria
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
Locked Bag 4700, Box Hill Vic 3128 43 Prospect Street, Box Hill Vic 3128 Phone: 03 9895 5900 Fax: 03 9895 5950 Email: vincentcare@vincentcare.org.au
ABN: 28 911 702 061 RN: A0042727Y
ABN: 53 094 807 280 ACN: 094 807 280
www.vinnies.org.au
www.vincentcare.org.au