2010-2011 Financial Report by Dianne Ballestrin

HELP SOMEONE SEE A BETTER FUTURE

2O1O-2O11 FINANCIAL REPORT

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 1

Contents

Consolidated Statements of Comprehensive Income

Consolidated Statements of Financial Position

Consolidated Statements of Changes in Equity

Consolidated Statements of Cash Flows

Notes to the Financial Statements

Statement by State Council

Independent Auditorâ&#x20AC;&#x2122;s Report

PAGE 2 help someone see a better future | 2O1O-2O11 financial report

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY Note 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

Continuing Operations Revenue Fundraising Government grants Sale of goods Other revenue Net gain on sale of property, plant and equipment Total Revenue Cost of sales Cost of sales

8,599,775 24,329,453 27,706,758 10,573,694 45,583

10,736,673 23,627,560 26,048,605 8,040,265 833,282

7,728,535 893,448 26,899,519 1,049,273 76,373

7,755,147 824,714 25,269,749 1,106,868 851,560

71,255,263

69,286,385

36,647,148

35,808,038

2(a) 2(b) 2(c) 2(d) 2(e)

3(a)

(20,033,804 )

(17,582,054 )

(18,361,530 )

(16,014,476 )

51,221,459

51,704,331

18,285,618

19,793,562

3(b) 3(c)

(1,431,904 ) (2,641,222 ) (4,073,126 )

(1,375,563 ) (2,706,483 ) (4,082,046 )

(1,431,904 ) (2,681,109 ) (4,113,013 )

(1,375,563 ) (2,704,413 ) (4,079,976 )

47,148,333

47,622,285

14,172,605

15,713,586

Gross Surplus Fundraising/public relations Administration Total Funds Available for Client Activities Client Services Expenses People in Need Services Aged Care Services Homelessness & Housing Services Support Services Impairment expenses Surplus/(deficit) for year from continuing operations Other comprehensive income/(expense) Changes in fair value of financial assets designated as at fair value through Statement of Comprehensive Income TOTAL COMPREHENSIVE SURPLUS/(DEFICIT) FOR YEAR

3(e) 3(f ) 3(g)

(9,579,749 ) (18,078,159 ) (12,165,134 )

(14,452,868 ) (16,797,043 ) (11,407,092 )

(9,961,025 ) - -

(14,540,874 ) -

3(h) 3(d)

(3,031,224 ) (42,854,266 ) (1,750,000 )

(3,120,394 ) (45,777,397 ) (391,902 )

(3,031,224 ) (12,992,249 ) -

(3,120,394 ) (17,661,268 ) -

1,180,356

(1,947,682 )

2(f)

2,544,067

16,163

2,560,230

The accompanying notes form part of these financial statements

1,452,986

(24,629 )

1,428,357

1,180,356

21,752

(1,925,930 )

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 3

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2011

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

5 6 7 8 10

35,946,641 1,408,648 216,614 3,825,483 763,051 42,160,437

26,846,883 1,231,438 235,552 6,206,477 809,800 35,330,150

9,169,824 681,433 201,587 2,003,200 586,097 12,642,141

4,876,620 555,066 213,367 4,245,804 565,227 10,456,084

8 9 11 12

500,000 66,030,658 12,527,609 79,058,267 121,218,704

2,000,000 64,697,023 14,477,188 81,174,211 116,504,361

57,807,700 23,262,316 131,122 81,201,138 93,843,279

2,000,000 55,555,537 24,419,288 204,795 82,179,620 92,635,704

13 14 15

3,292,340 4,576,967 15,643,135 23,512,442

1,997,694 4,355,776 15,053,414 21,406,884

2,579,779 1,153,210 246,479 3,979,468

2,384,223 1,158,457 404,353 3,947,033

629,548 629,548

580,993 580,993

148,441 148,441

153,657 153,657

24,141,990

21,987,877

4,127,909

4,100,690

97,076,714

94,516,484

89,715,370

88,535,014

35,127,015 61,949,699

34,029,707 60,486,777

15,120,900 74,594,470

14,702,705 73,832,309

97,076,714

94,516,484

89,715,370

88,535,014

97,076,714

94,516,484

89,715,370

88,535,014

Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Financial assets Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets Investments in controlled entities Property, plant & equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Reserves Retained earnings Total parent entity interest TOTAL EQUITY

The accompanying notes form part of these financial statements

PAGE 4 help someone see a better future | 2O1O-2O11 financial report

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY Balance at 1 July 2009 Surplus for the year Other Comprehensive Expense Total Comprehensive Surplus Transfer to Bequest Reserve Transfer from Bushfire Appeal Reserve Balance at 30 June 2010

Retained Earnings

57,143,503 1,452,986

4,887,484 2,473,070 - -

198,036 -

558,153

28,256,034

198,036

679,113

28,256,034

198,036

- 6,124,750

13,235,238 -

(1,925,930 )

2,473,070

73,832,309 1,180,356

13,235,238 -

1,467,467 -

1,180,356

13,235,238

- 1,467,467

(24,629 ) 1,428,357

(558,153 ) 2,473,070 60,486,777

73,285,169 (1,947,682 )

21,752

Flood Relief Appeal Reserve $

28,256,034 -

Surplus for the year 2,544,067 Other Comprehensive Income 16,163 Total Comprehensive Surplus 2,560,230 Transfer to Bequest Reserve (679,113 ) Transfer to Flood Relief Appeal Reserve (418,195 ) At 30 June 2011 61,949,699 PARENT ENTITY Balance at 1 July 2009 Deficit for the year Other Comprehensive Income Total Comprehensive Deficit Transfer from Bushfire Appeal Reserve Balance at 30 June 2010 Surplus for the year Other Comprehensive Income Total Comprehensive Surplus Transfer to Flood Relief Appeal Reserve At 30 June 2011

Asset Capital Revaluation Profits Reserve Reserve $ $

Reserves (Note 16) Bequest Bushfire Reserve Appeal Reserve

(418,195 ) 74,594,470

The accompanying notes form part of these financial statements

- (2,473,070 ) 5,445,637 -

Fund-a- Future Reserve

Total

130,000 93,088,127 - 1,452,986

(24,629 )

- 1,428,357

- 130,000 94,516,484

- 2,544,067

- 2,560,230

418,195 418,195

1,467,467 2,473,070 - -

- 90,460,944 - (1,947,682 )

- (1,925,930 )

- (2,473,070 )

- 88,535,014 - 1,180,356

- 1,180,356

418,195 418,195

- - 89,715,370

16,163

- 130,000 97,076,714

21,752

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 5

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY Note 2011 $ 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) operating activities 19(b) Cash flows From Investing Activities: Proceeds from sale of property, plant and equipment Proceeds from investments Payment for property, plant and equipment Payments for intangible assets Payments for investments Capital contributed to subsidiaries Net cash (used in)/provided by investing activities Cash flows From Financing Activities: Proceeds from residents’ accommodation bonds Repayment of residents’ accommodation bonds Net cash provided by financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

60,908,239 9,142,984

57,607,731 9,224,882

(62,409,069 ) 1,260,919

(65,116,505 ) 1,363,325

(33,089,788 ) 477,503

(36,322,070 ) 483,599

8,903,073

3,079,433

3,206,947

(2,170,324 )

603,489 4,799,852

1,298,729 3,680,538

549,178 4,000,000

1,241,544 3,000,000

(5,419,211 ) (19,265 ) (493,626 ) -

(6,070,856 ) (378,483 ) (5,429 ) -

26,676,248 9,142,984

(1,144,353 ) (19,265 ) (2,299,303 )

(1,475,501 ) 1,086,257

24,443,265 9,224,882

(3,581,804 ) (165,588 ) (1,325,888 )

(528,761 )

(831,736 )

5,362,039

3,965,197

(4,636,593 )

(2,395,417 )

725,446 1,569,780 -

9,099,758

3,173,712

4,293,204

(3,002,060 )

26,846,883

23,673,171

4,876,620

7,878,680

Cash and cash equivalents at the end of the financial year 19(a)

35,946,641

26,846,883

9,169,824

4,876,620

The accompanying notes form part of these financial statements

PAGE 6 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2011

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The St Vincent de Paul Society Victoria Inc. (“the Society”) is a non government welfare agency incorporated under the Associations Incorporations Act (Vic) 1981 and is domiciled in Australia. The Society’s registered office and its principal place of business are as follows: Registered office 43-45 Prospect Street Box Hill VIC 3128 Tel: (03) 9895 5800

Principal place of business 43-45 Prospect Street Box Hill VIC 3128 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., VincentCare Victoria and its subsidiary VincentCare 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 2011. 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 Group’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. 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., VincentCare Victoria and its subsidiary VincentCare Community Housing, 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 influence 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. PAGE 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.

(c) Income tax The Group is exempt under the provisions of the Income Tax Assessment Act 1997 (as amended), and as such is not subject to income taxes at this time. Accordingly, no income tax has been provided for the Group 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 Statement of Cash Flows, 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 the statement of comprehensive income which are initially measured at fair value. Financial assets are classified into the following specified categories: financial assets ‘at fair value through the statement of comprehensive income’, ‘held-to-maturity investments’ and ‘loans and receivables’.

PAGE 8 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (e) Financial assets (cont.) Held to maturity investments Collateralised debt obligations and floating rate notes 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’. Heldto-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis. Investments in term deposits are measured on the cost basis. Financial assets at fair value through the 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 shortterm 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. Impairment of financial assets Financial assets are assessed for indicators of impairment at the end of 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 the statement of comprehensive income. 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 the statement of comprehensive income 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) 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.

(g) 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

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 9

(g) Goods and services tax (GST) (cont.) 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 statement of cash flows 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.

(h) 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 statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Properties in the course of construction are carried at cost, less any recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance with the Groupâ&#x20AC;&#x2122;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 and leasehold improvements are stated at cost less accumulated depreciation and impairment. 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 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 straight-line 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 the statement of comprehensive income. 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.

(i) 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.

(j) Impairment 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

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NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (j) Impairment (cont.) 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.

(k) 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 cost, adjusted when applicable for any loss of service potential.

(l) 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.

(m) 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.

(n) 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.

(o) Leases Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the 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.

(p) 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.

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 11

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.

(q) 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 affected the amounts reported or disclosed 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 Note 1(r). Standards affecting presentation and disclosure Standard Amendments to AASB 7 ‘Financial Instruments: Disclosure’ (adopted in advance of effective date of 1 January 2011) Amendments to AASB 101 ‘Presentation of Financial Statements’ (adopted in advance of effective date of 1 January 2011) Amendments to AASB 107 ‘Statement of Cash Flows’

The amendments (part of AASB 2010-4 ‘Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project’) clarify the required level of disclosures about credit risk and collateral held and provide relief from disclosures previously required regarding renegotiated loans. The amendments (part of AASB 2010-4 ‘Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project’) clarify that an entity may choose to present the required analysis of items of other comprehensive income either in the statement of changes in equity or in the notes to the financial statements. 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.

Standards and Interpretations affecting the reported results or financial position There are no new and revised Standards and Interpretations adopted in these financial statements affecting the reporting results or financial position.

(r) 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 2009-5 ‘Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project’ AASB 2010-4 ‘Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project’

Except for the amendments to AASB 107 described earlier this section, the application of AASB 2009-5 has not had any material effect on amounts reported in the financial statements. Except for the amendments to AASB 7 and AASB 101 described earlier this section, the application of AASB 2010-4 has not had any material effect on amounts reported in the financial statements.

(s) Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. Standard 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’ and AASB 2010-7 ‘Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)’ AASB 2010-5 ‘Amendments to Australian Accounting Standards’ AASB 2010-6 ‘Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets’

Effective for annual reporting periods beginning on or after 1 January 2011

Expected to be initially applied in the financial year ending 30 June 2012

1 January 2013

30 June 2014

1 January 2011 1 July 2011

30 June 2012 30 June 2012

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

PAGE 12 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

2,562,485 2,807,567 6,037,290 7,929,106 8,599,775 10,736,673

1,883,372 5,845,163 7,728,535

2,249,415 5,505,732 7,755,147

Note 2. REVENUE AND OTHER INCOME (a) Fundraising activities Bequests Donations (b) Government grants Councils/Conferences/Centres Community Services Aged Care Ozanam Enterprises (c) Sale of goods Sales – Centres of Charity Sales – Groceries Sales – Piety Sales – Ozanam Enterprises (d) Other revenue Client rent/fees Accommodation bonds retention Accommodation charge Interest received – bank deposits Interest received – held-to-maturity investments Interest received – other persons Investment income – shares in listed corporations Sundry income (e) Net gain on sale of property, plant and equipment TOTAL REVENUE OTHER INCOME/(EXPENSES) (f) Changes in fair value of financial assets designated as at fair value through Statement of Comprehensive Income

893,448 10,368,954 12,374,114 692,937 24,329,453

824,714 11,457,818 10,651,283 693,745 23,627,560

893,448 893,448

824,714 824,714

26,354,168 231,515 313,836 807,239 27,706,758

24,723,554 226,485 319,710 778,856 26,048,605

26,354,168 231,515 313,836 26,899,519

24,723,554 226,485 319,710 25,269,749

5,518,508 328,145 342,349 1,450,343

5,131,680 355,094 213,987 1,012,305

198,408

196,871

366,880 424,666 205,816 197,814

264,821 -

276,567 -

135,638 33,956 2,226,015 670,763 10,573,694 8,040,265

65,043 521,001 1,049,273

10,161 623,269 1,106,868

45,583 833,282

76,373

851,560

36,647,148

35,808,038

21,752

71,255,263

16,163

69,286,385

(24,629 )

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 13

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

8,445,476 2,210,807 72,341 811 9,304,369 20,033,804

7,423,726 1,347,803 54,850 11,266 8,744,409 17,582,054

7,156,654 2,092,431 9,112,445 18,361,530

6,206,601 1,241,690 8,566,185 16,014,476

621,325 225,425 585,154 1,431,904

626,179 165,500 583,884 1,375,563

621,325 225,425 585,154 1,431,904

626,179 165,500 583,884 1,375,563

85,169 48,427 1,186,191 350,956 206,720 44,236 188,993 8,890 36,033 92,399 4,506 112,672 276,030 2,641,222

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

85,169 43,436 1,186,191 350,956 206,720 44,236 188,993 8,890 36,033 92,399 4,506 157,550 276,030 2,681,109

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

1,750,000 1,750,000

391,902 391,902

878,401 33,194 4,697,610 1,296,194 545,196 430,658 129,884 466,208 14,416 71,590 279,246 510,614 42,497 184,041 9,579,749

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

878,401 33,194 4,697,610 1,296,194 545,196 430,658 129,884 466,208 14,416 71,590 279,246 510,614 42,497 565,317 9,961,025

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

Note 3. OPERATING SURPLUS/(DEFICIT) Operating expenses (a) Cost of sales Employee salaries & benefits Cost of goods sold â&#x20AC;&#x201C; purchases/materials Depreciation and amortisation Construction costs expensed Selling & Administration (b) Fundraising/public relations Employee salaries & benefits Promotion Other (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 â&#x20AC;&#x201C; includes Shared Services costs State Council (d) Impairment expenses Impairment of held-to-maturity investments carried at amortised cost Impairment of Aged Care bed licences (e) People in Need Services Accommodation/Transport Cash Food vouchers Food purchases Whitegoods Utilities Medical Education Compassionate Youth Bushfire & flood relief Overseas Bursary Sundry

PAGE 14 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

780,750 359,736 1,158,483 12,154,602 160,320 413,015 220,194 53,446 493,806 276,843 38,645 497,815 314,320 65,980 1,090,204 18,078,159

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

283,573

257,255

1,763,508 585,051 7,522,741 222,616 150,380 175,596 362,681 98,768 237,445 5 762,770 12,165,134

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

202,395

196,500

202,395

196,500

1,171,107 326,061 603,264 728,397 3,031,224

1,126,221 284,871 748,000 764,802 3,120,394

1,171,107 326,061 603,264 728,397 3,031,224

1,126,221 284,871 748,000 764,802 3,120,394

68,711,196

67,833,399

35,466,792

37,755,720

Note 3. OPERATING SURPLUS/(DEFICIT) (cont.) Operating expenses (cont.) (f) Residential 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 (g) 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 (h) Support Services Accounting & payroll support Conference Support – employee salaries & benefits Conference Support – other State, National, International Councils Conference operating costs

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 15

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

3,605,916 131,413 9,185 4,781 3,885

3,310,603 73,574 253,488 6,912 -

1,828,516 92,938 -

1,724,412 51,452 20,782 -

3,868,229 29,930,335

3,560,504 27,582,881

3,666,982 8,964,170

3,364,700 7,904,439

91,293 19,350 110,643

101,649 101,649

28,793 28,793

39,650 39,650

37,664,387

34,889,611

14,581,399

13,105,435

45,583

833,282

76,373

851,560

(i) Other items Surplus/(deficit) from operating activities has been determined after: (i) Expenses Depreciation of property, plant & equipment Amortisation of intangibles Construction costs expensed Impairment of trade receivables Bad debts written off Rental expense on operating leases - Minimum lease payments Employee salaries & benefits Remuneration of Auditor - Audit - Contract management review

(ii) Net gain Net gain on sale of property, plant and equipment

(iii) Flood damage repair costs Costs of $102,638 have been recognised by the Group during the year in respect of flood damage repairs to be carried out at 179 Flemington Road, North Melbourne, which have been included in Repairs & Maintenance under Homelessness & Housing Services. The amount represents the estimated cost of work to be carried out in 2012. A provision of $102,638 has been carried forward to meet anticipated expenditure in 2012 (see note 14) and the insurance recovery received of $102,638 has been included in Sundry Income under Other Revenue (see note 2(d)).

Note 4. KEY MANAGEMENT PERSONNEL COMPENSATION Short-term employee benefits - Salary & Fees - Non-Cash Benefits Post-employment benefits - Superannuation Total

1,908,785 165,600

1,649,200 127,000

953,276 73,200

904,700 61,000

171,791

148,500

85,795

81,500

2,246,176

1,924,700

1,112,271

1,047,200

PAGE 16 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

Cash on hand

54,463 62,154

38,823

44,914

Cash deposits with banks Councils & Central Office VincentCare Victoria SVDP Victoria Endowment Fund Society of St Vincent de Paul (Victoria)

1,011,871 1,319,232 2,069,098 4,874

692,280 801,168 110,399 4,873

1,011,871 -

692,280 -

Term Deposits Councils, Central Office & Conferences 8,119,130 4,139,426 VincentCare Victoria 22,867,973 19,936,583 SVDP Victoria Endowment Fund 500,000 1,100,000 35,946,641 26,846,883

8,119,130 9,169,824

4,139,426 4,876,620

Note 5. CASH AND CASH EQUIVALENTS

Note 6. TRADE AND OTHER RECEIVABLES Trade debtors (i) Allowance for doubtful debts

840,878 492,203 (37,500 ) (32,719 ) 803,378 459,484

200,261 200,261

106,062 106,062

Other debtors Amount receivable from VincentCare Victoria

605,270

771,954

423,039

449,004

58,133

Total Current Receivables

1,408,648

1,231,438

681,433

555,066

(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 Groupâ&#x20AC;&#x2122;s trade receivable balance are debtors with a carrying amount of $1,532 (2010: $48,770) 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 109 days (2010: 99 days). Ageing of past due debtors 61-90 days Over 90 days 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 Balance at the end of the year

11,832 56,456 27,200 25,033 39,032 81,489

32,719 25,807 24,300 14,500 (519 ) (19,000 ) 37,500

(753 ) (6,835 ) 32,719

1,889 1,889

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.

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 17

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

216,614

235,552

201,587

213,367

2,000,000

4,932,690

2,000,000

4,000,000

500,000 500,000

2,000,000 2,000,000

1,825,483

1,273,787

3,200

245,804

4,325,483

8,206,477

2,003,200

6,245,804

3,825,483 500,000 4,325,483

6,206,477 2,000,000 8,206,477

2,003,200 2,003,200

4,245,804 2,000,000 6,245,804

Note 7. INVENTORIES Finished goods

Note 8. OTHER FINANCIAL ASSETS Held-to-maturity investments carried at amortised cost: CURRENT Medium term notes NON-CURRENT Medium term notes Collateralised debt obligations Units in equity linked investment Financial assets carried at fair value through Statement of Comprehensive Income: CURRENT Shares in listed corporations

Disclosed in the financial statements as: Current financial assets Non-current financial assets

PAGE 18 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 8. OTHER FINANCIAL ASSETS (cont.) Maturity Date Medium term notes Floating rate note CBA Subordinate Debt (i) Floating rate note Colonial Finance (i) Floating rate note HSBC (i) Floating rate note Macquarie (i) Floating rate note CBA Retail Bonds (i)

Consolidated Entity 2011

Consolidated Entity 2010

Parent Entity 2011

Parent Entity 2010

Units

10 Nov 2010

1,000,000

932,690

24 Mar 2011 19 May 2011

3,000,000 1,000,000

31 May 2012

2,000,000

24 Dec 2015

5,000 2,005,000

500,000 2,500,000

7,000,000

6,932,690

2,000,000

6,000,000

3,000,000 3,000,000

Collateralised debt obligations Corsair Pure (CBA) (ii)

(i) The Group holds medium term notes returning a variable rate of interest. The weighted average rate on these securities is 5.49% (2010: 5.14%). The notes are redeemable at face value at maturity dates ranging between 1 to 42 months from reporting date. (ii) Corsair Pure On 20 December 2010, the PURE AAA Managed Notes were redeemed by the Issuer, Corsair (Jersey) No.2 Limited, at zero value, following a credit default which had exceeded the remaining principal amount of the notes. The Group received no further principal or interest payments. CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

57,807,700

55,555,537

Note 9. INVESTMENTS IN CONTROLLED ENTITIES NON CURRENT Investments in controlled entities

Country of Incorporation Parent Entity: St Vincent de Paul Society Victoria Inc. Controlled entities of St Vincent de Paul Society Victoria Inc. VincentCare Victoria (i) Society of St Vincent de Paul (Victoria) St Vincent de Paul Victoria Endowment Fund VincentCare Community Housing (ii)

Percentage Owned

Australia

Australia Australia Australia Australia

100% 100% 100% 100%

(i) Formerly known as St Vincent de Paul Aged Care and Community Services. (ii) Formerly known as St Vincent de Paul Community Housing. During the financial year: • The Society contributed a further $1,391,446 (2010: $1,674,642) to St Vincent de Paul Victoria Endowment Fund; • The Society received interest income of $263,664 (2010: $130,174) from St Vincent de Paul Victoria Endowment Fund; and • The Society contributed $1,124,381 (2010: $656,726) to VincentCare Victoria 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 untied 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.

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 19

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

241,188 521,863 763,051

249,682 560,118 809,800

240,939 345,158 586,097

249,682 315,545 565,227

22,975,608

22,247,852

9,115,844

8,966,841

37,649,261 35,087 (6,172,447 ) 31,511,901

35,160,328 1,356,916 (5,264,139 ) 31,253,105

11,401,207 5,159 (2,293,178 ) 9,113,188

11,278,295 417,269 (2,020,580 ) 9,674,984

Note 10. OTHER ASSETS – CURRENT GST recoveries Prepayments

Note 11. PROPERTY, PLANT & EQUIPMENT LAND At cost BUILDINGS At cost Buildings under construction Less accumulated depreciation BUILDING IMPROVEMENTS At cost Less accumulated depreciation LEASEHOLD IMPROVEMENTS At cost Less accumulated depreciation FURNITURE, PLANT & EQUIPMENT At cost Less accumulated depreciation MOTOR VEHICLES At cost Less accumulated depreciation COMPUTER HARDWARE At cost Less accumulated depreciation

3,377,688 (832,938 ) 2,544,750

2,579,178 (549,499 ) 2,029,679

1,030,059 (219,954 ) 810,105

846,775 (129,712 ) 717,063

2,745,701 (1,071,181 ) 1,674,520

2,693,058 (656,854 ) 2,036,204

1,870,564 (917,867 ) 952,697

1,831,517 (575,912 ) 1,255,605

10,134,374 (5,337,815 ) 4,796,559

8,627,913 (4,252,436 ) 4,375,477

3,587,373 (1,900,924 ) 1,686,449

3,324,367 (1,401,630 ) 1,922,737

5,380,886 (3,401,182 ) 1,979,704

5,415,737 (3,205,911 ) 2,209,826

3,857,102 (2,534,712 ) 1,322,390

3,871,576 (2,450,927 ) 1,420,649

1,805,067 1,417,891 1,103,646 1,035,785 (1,260,431 ) (875,991 ) (844,458 ) (576,831 ) 544,636 541,900 259,188 458,954

ARTWORK & ANTIQUITIES At cost

2,980

2,455

66,030,658

64,697,023

23,262,316

24,419,288

PAGE 20 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

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. CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

Total Land Carrying amount at beginning of financial year Additions Disposals Transfer of Capital WIP Carrying amount at end of financial year

22,247,852 578,753 (92,999 ) 242,002 22,975,608

Total Buildings Carrying amount at beginning of financial year Additions Transfer of Capital WIP Transfer to Intangibles Disposals Construction costs expensed Less depreciation Carrying amount at end of financial year

31,253,105 2,041,278 (712,582 ) (90,407 ) (46,835 ) (9,185 ) (923,473 ) 31,511,901

30,786,294 2,628,145 (959,838 ) (81,250 ) (253,488 ) (866,758 ) 31,253,105

2,029,679 646,682 135,022 36,138 (15,822 ) (286,949 ) 2,544,750

1,552,966 637,137 77,421 (237,845 ) 2,029,679

Total Leasehold Improvements Carrying amount at beginning of financial year Additions Transfer from Capital WIP Less depreciation Carrying amount at end of financial year

2,036,204 37,073 15,570 (414,327 ) 1,674,520

957,952 651,789 820,610 (394,147 ) 2,036,204

Total Furniture, Plant & Equipment Carrying amount at beginning of financial year Additions Transfer from Capital WIP Disposals Reclassifications Less depreciation Carrying amount at end of financial year

4,375,477 1,293,913 252,019 (283 ) (36,138 ) (1,088,429 ) 4,796,559

Total Building Improvements Carrying amount at beginning of financial year Additions Transfer from Capital WIP Reclassification Disposals Less depreciation Carrying amount at end of financial year

22,089,125 314,727 (156,000 ) 22,247,852

4,034,667 1,266,211 4,537 (199 ) (929,739 ) 4,375,477

PARENT ENTITY 2011 $

8,966,841 (92,999 ) 242,002 9,115,844

9,674,984 89,071 (316,269 ) (46,835 ) (287,763 ) 9,113,188

PARENT ENTITY 2010 $

8,808,114 314,727 (156,000 ) 8,966,841

8,760,044 1,281,868 (81,250 ) (20,782 ) (264,896 ) 9,674,984

717,063 143,987 58,697 (15,822 ) (93,820 ) 810,105

456,099 336,606 (75,642 ) 717,063

1,255,605 23,477 15,570 (341,955 ) 952,697

941,471 650,027 (335,893 ) 1,255,605

1,922,737 266,271 (283 ) (502,276 ) 1,686,449

1,644,071 678,545 (199 ) (399,680 ) 1,922,737

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 21

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

1,420,649 553,687 (316,870 ) (335,076 ) 1,322,390

1,808,126 167,191 (152,535 ) (402,133 ) 1,420,649

458,954 67,860 (267,626 ) 259,188

552,282 152,840 (246,168 ) 458,954

Note 11. PROPERTY, PLANT & EQUIPMENT (cont.) Total Motor Vehicles Carrying amount at beginning of financial year Additions Disposals Less depreciation Carrying amount at end of financial year

2,665,254 358,161 (227,998 ) (585,591 ) 2,209,826

Total Computer Hardware Carrying amount at beginning of financial year 541,900 Additions 140,138 Transfer from Capital WIP 67,969 Transfer from Intangibles 177,838 Less depreciation (383,209 ) Carrying amount at end of financial year 544,636

623,737 214,686 (296,523 ) 541,900

Total Artwork & Antiquities Carrying amount at beginning and end of financial year Total Property, Plant & Equipment Carrying amount at beginning of financial year Additions Disposals Transfer from Intangibles Transfer to Intangibles Construction costs expensed Less depreciation Carrying amount at end of financial year

2,209,826 681,374 (401,967 ) (509,529 ) 1,979,704

2,980

64,697,023 5,419,211 (557,906 ) 177,838 (90,407 ) (9,185 ) (3,605,916 ) 66,030,658

2,980

62,712,975 6,070,856 (465,447 ) (57,270 ) (253,488 ) (3,310,603 ) 64,697,023

2,455

24,419,288 1,144,353 (472,809 ) (1,828,516 ) 23,262,316

2,455

22,972,662 3,581,804 (389,984 ) (20,782 ) (1,724,412 ) 24,419,288

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 and was valued at greater than cost so no impairment was recognised. In accordance with the accounting policy in Note 1(h), land and buildings have not been revalued to the current market value.

PAGE 22 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

1,227,445 (750,257 ) 477,188

360,979 (229,857 ) 131,122

341,715 (136,920 ) 204,795

131,122

204,795

Note 12. INTANGIBLES AGED CARE BED LICENCES Aged Care bed licences at cost COMPUTER SOFTWARE & IT DEVELOPMENT At cost Less accumulated amortisation Total Intangibles

12,250,000

1,158,048 (880,439 ) 277,609 12,527,609

14,000,000

14,477,188

Reconciliations Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the current and previous financial year are set out below: Aged Care Bed Licences Carrying amount at beginning of financial year Impairment loss recognised in the Statement of Comprehensive Income Carrying amount at end of financial year Total Computer Software & IT Development Carrying amount at beginning of financial year Additions Transfer from Capital WIP Transfer to Computer Hardware Less amortisation Carrying amount at end of financial year Total Intangibles Carrying amount at beginning of financial year Additions Transfer from Capital WIP Transfer to Computer Hardware Impairment loss recognised in the Statement of Comprehensive Income Less amortisation Carrying amount at end of financial year

14,000,000

(1,750,000 ) 12,250,000

14,000,000

- -

477,188 19,265 90,407 (177,838 ) (131,413 ) 277,609

14,477,188 19,265 90,407 (177,838 )

115,009 378,483 57,270 (73,574 ) 477,188

204,795 19,265 (92,938 ) 131,122

90,659 165,588 (51,452 ) 204,795

14,115,009 378,483 57,270 -

204,795 19,265 - -

90,659 165,588 -

(1,750,000 ) (131,413 ) 12,527,609

- (73,574 ) 14,477,188

- (92,938 ) 131,122

(51,452 ) 204,795

During the year, the Group carried out a review of the recoverable amount of the Aged Care bed licences. These licences are used in the Groupâ&#x20AC;&#x2122;s Residential Aged Care segment. The review led to the recognition of an impairment loss of $1,750,000, which has been recognised in the Statement of Comprehensive Income. The recoverable amount of the bed licences has been determined based on an independent valuation performed by Herron Todd White which has indicated a reduction in the value of bed licences based on four transactions of Aged Care bed licences between February and April 2011. No impairment loss was recognised in 2010 as there was no indication of impairment from the broader sector. The impairment loss has been included in the line item Impairment Expenses in the Statement of Comprehensive Income.

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 23

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

1,355,163 990,272 851,153 -

787,003 590,241 552,141 -

893,512 238,963 326,560 -

345,168 241,325 274,971 54,489

95,752 3,292,340

68,309 1,997,694

1,120,744 2,579,779

1,468,270 2,384,223

Note 13. TRADE AND OTHER PAYABLES Unsecured: Trade creditors (i) Accrued creditors Other creditors Amount payable to VincentCare Victoria Amount payable to SVDP Victoria Endowment Fund GST payable

(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) Other provision (ii)

(a) (b)

4,474,329 102,638 4,576,967

4,355,776 4,355,776

1,153,210 1,153,210

1,158,457 1,158,457

NON-CURRENT Employee benefits

(a)

629,548

580,993

148,441

153,657

5,103,877

4,936,769

1,301,651

1,312,114

102,638 102,638

(a) Aggregate Employee Entitlement Liability (b) Other provision Flood damage repairs (ii) Provision recognised Balance at 30 June 2011

(i) The current provision of employee benefits includes $3,773,069 (parent entity: $1,153,210) of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2010: $3,648,585 and $1,158,457 for the Group and for the parent entity respectively). (ii) The provision for flood damage repairs relates to the estimated cost of work agreed to be carried out to repair the flood damage at 179 Flemington Road, North Melbourne. Anticipated expenditure for 2012 is $102,638. The amount has not been discounted for the purpose of measuring the provision for flood damage repairs, because the effect is not material.

Note 15. OTHER LIABILITIES Unsecured: Refundable accommodation bonds Grants in advance Prepaid income Other liabilities

13,493,420 2,040,307 109,408 15,643,135

13,203,301 1,630,658 204,353 15,102 15,053,414

246,479 246,479

404,353 404,353

PAGE 24 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 16. RESERVES Nature and purpose of reserves as disclosed in the Statement of Changes in Equity: Asset revaluation reserve $28,256,034 (2010: $28,256,034) – parent entity $13,235,238 (2010: $13,235,238) Represents previous increases in valuation of land and buildings. Land and buildings are now held at deemed cost, however the Group is using this reserve to keep a record of those previous revaluations. Capital profits reserve $198,036 (2010: $198,036) – parent entity $Nil (2010: $Nil) Represents the capital value of land and building sold. Fund-a-Future reserve $130,000 (2010: $130,000) – parent entity $Nil (2010: $Nil) Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24. Bequest reserve $6,124,750 (2010: $5,445,637) – parent entity $1,467,467 (2010: $1,467,467) 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 (2010: $Nil) - parent entity $Nil (2010: $Nil) Represented funds set aside to assist Bushfire survivors as they return to re-establish their homes and livelihood within their communities. Flood Relief Appeal reserve $418,195 (2010: $Nil) - parent entity $418,195 (2010: $Nil) Represents funds set aside to assist Victorian Flood victims as they return to re-establish their homes and livelihood within their communities. CONSOLIDATED CONSOLIDATED PARENT PARENT ENTITY ENTITY ENTITY ENTITY 2011 2010 2011 2010 $ $ $ $

Note 17. LEASE COMMITMENTS RECEIVABLE

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 Representing Non-cancellable operating lease

83 83

33,159 83 33,242

50,083 100,000 150,083

83,159 150,083 233,242

33,242

150,083

233,242

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

3,044,388 3,606,750 2,915,770 3,465,742 5,196,431 7,672,748 5,150,520 7,498,093 1,437,708 3,482,456 1,436,998 3,481,733 9,678,527 14,761,954 9,503,288 14,445,568 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 Payable Not later than one year

864,000 1,472,324 2,336,324

2,336,324

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 25

CONSOLIDATED ENTITY 2011 $

CONSOLIDATED ENTITY 2010 $

PARENT ENTITY 2011 $

PARENT ENTITY 2010 $

38,823 1,011,871 8,119,130 9,169,824

44,914 692,280 4,139,426 4,876,620

1,180,356

(1,925,930 )

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 Statement of Cash Flows 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 Statement of Cash Flows

54,463 4,405,075 31,487,103 35,946,641

(b) Reconciliation of cash flows from operations with operating surplus/deficit Operating surplus/(deficit)

2,560,230

1,428,357

3,737,329 9,185

3,384,177 253,488

Non-cash flows and non-operating activities in operating surplus/deficit Depreciation and amortisation Construction costs expensed Gain arising on maturity of medium term notes Net gain on sale of property, plant and equipment Net gain on disposal of shares in listed corporations Impairment of Aged Care Bed licences Impairment of held-to-maturity investments carried at amortised cost Change in fair value of financial assets designated as at fair value through statement of comprehensive income 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 payable on refund of residents’ accommodation bond Changes in assets and liabilities (Increase)/decrease in receivables Decrease/(increase) in inventories Decrease/(increase) in prepayments Increase/(decrease) in payables and other liabilities Increase/(decrease) in provisions Cash Flows from operations

(67,310 )

(45,583 )

62,154 1,608,720 25,176,009 26,846,883

(833,282 )

(51,875 ) 1,750,000 -

- - 391,902

(16,163 ) 24,629

1,921,454 -

1,775,864 20,782

(76,373 )

(851,560 )

(42,530 ) - -

(15,000 )

(289,884 )

(1,100,216 )

(321,052 )

(336,805 )

(162,187 )

(131,568 )

47,912

29,826

(21,752 )

(289,884 )

(1,100,216 )

(168,716 ) 18,938 38,255

(10,928 ) (32,119 ) (20,831 )

(117,624 ) 11,780 (29,613 )

205,178 (37,235 ) 10,543

1,594,248 269,746

(292,379 ) 340,182

659,844 (10,463 )

(423,794 ) 177,796

8,903,073

3,079,433

3,206,947

(2,170,324 )

PAGE 26 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 20. FINANCIAL INSTRUMENTS (a) Financial risk management The Group’s financial instruments consist mainly of deposits with banks, short-term investments, bank notes, accounts receivable and payable, and refundable accommodation bonds. St Vincent de Paul Society Victoria Inc., VincentCare Victoria and St Vincent de Paul Victoria Endowment Fund operate under separate treasury policies, which set out the investment strategies and associated risk profiles of the entities. These are reviewed by the following Committees established for each entity: The Finance Committee The Finance Committee oversees the treasury function of the Society. Membership of the Society’s Finance Committee consists of representatives from State Council, the Chief Executive Officer, the Chief Financial Officer, the Finance Manager as well as external members selected for their particular financial and legal expertise. The Investment Sub Committee The Investment Sub Committee oversees the treasury function of St Vincent de Paul Victoria Endowment Fund. Membership of the Investment Sub Committee consists of representatives from the Society’s Finance Committee. The Risk, Audit and Finance Committee The Risk, Audit and Finance Committee oversees the treasury function of VincentCare Victoria and its subsidiary VincentCare Community Housing. Membership of the Risk, Audit and Finance Committee consists of representatives from VincentCare Victoria’s Board of Directors as well as the Chief Executive Officer, the General Manager of Risk Management and Continuous Quality Improvement, Manager Internal Audit and the Chief Financial Officer. The abovementioned Committees will be referred to collatively as “the Committees” in these financial statements. (i) Treasury risk management The Committees have the responsibility of determining the spread of investments across available financial investment options within the confines of their respective Treasury Policies and analysing interest rate exposure in the context of the most recent economic conditions and forecasts. The Committees meet on a regular basis to monitor movement in the financial investments and make recommendations to the Society’s State Council and VincentCare Victoria’s Board of Directors, respectively. (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 Board of Directors. The Committees have built an appropriate liquidity risk management framework for the management of the Group’s short, medium and longterm 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).

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 27

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 $91,000 (2010: $64,000). The parent entity’s net surplus would respectively decrease or increase by approximately $160 (2010: net deficit would respectively increase or decrease by approximately $12,000). 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 Committees 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 Statement of Financial Position 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 nonderivative 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 $192,000 (2010: $176,000). The parent entity’s net surplus would respectively decrease or increase by approximately $56,000 (2010: net deficit would respectively increase or decrease by approximately $54,000). This is mainly attributable to the Group’s exposure to interest rates on its financial instruments.

PAGE 28 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 20. FINANCIAL INSTRUMENTS (cont.) (b) Interest rate risk (cont.) Consolidated Entity Financial Instruments

(i) Financial Assets Cash SVDP Inc. VincentCare Victoria SVDP VIC Endowment Fund Society of SVDP (Victoria) Trade and Other Receivables SVDP Inc. VincentCare Victoria SVDP VIC Endowment Fund Other Financial Assets SVDP Inc. VincentCare Victoria SVDP VIC Endowment Fund Total Financial Assets

Weighted average effective interest rate

Floating Interest Rate

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

2011

2010

2011 $

4.52% 5.24%

4.07% 5.21%

3,336,616 -

5.21%

4.80%

2,057,602

32,229

511,496

5.36% 1.28%

2011 $

2010 $

2011 $

2,044,566 4,782,514 2,094,860 - 24,181,638 20,730,663

1,050,694 21,207

1,178,170

2,569,098

1,210,399

4,874

4,873

4,874

4,873

623,300 784,377

555,066 698,125

623,300 784,377

555,066 698,125

38,471

10,966

38,471

10,966

4.95% -

2,000,000 -

6,000,000 -

3,200 -

245,804 -

2,003,200 -

6,245,804 -

2.43%

500,000

932,690

1,822,283

1,027,983

2,322,283

1,960,673

9,009,485 29,475,649 24,003,693

4,348,406

3,304,339 41,718,272 36,317,517

1,459,035 1,833,205

861,464 1,134,130

1,459,035 1,833,205

861,464 1,134,130

100

2,000

100

2,000

(ii) Financial Liabilities Trade and Other Payables SVDP Inc. VincentCare Victoria SVDP VIC Endowment Fund Refundable Accommodation Bonds VincentCare Victoria Total Financial Liabilities

2010 $

Total carrying amount as per the statement of financial position 2011 2010 $ $

2010 $

7,894,218

2010 $

Non Interest bearing

737,194 9,169,824 4,876,620 24,328 24,202,845 20,754,991

13,493,420 13,203,301 13,493,420 13,203,301 -

- 16,785,760 15,200,895 16,785,760 15,200,895

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

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 29

(c) Liquidity Risk The following tables detail the Groupâ&#x20AC;&#x2122;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. Weighted average interest rate %

Less than 1 year $

1-5 years $

5+ years $

Consolidated 2011 Non-interest bearing 2010 Non-interest bearing

16,785,760

15,200,895

Parent Entity 2011 Non-interest bearing 2010 Non-interest bearing

2,579,779

2,384,223

The following tables detail the Groupâ&#x20AC;&#x2122;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. Weighted average interest rate %

Less than 1 year $

1-5 years $

5+ years $

Consolidated 2011 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

4.94% 5.30%

2,526,372 7,507,794 29,682,001 39,716,167

627,692 627,692

2010 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

4.94% 5.21%

2,276,356 7,355,837 20,808,420 30,440,613

2,096,045 3,914,320 6,010,365

Parent Entity 2011 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

4.83% 5.48%

1,677,194 5,444,376 4,821,197 11,942,767

2010 Non-interest bearing Variable interest rate instruments Fixed interest rate instruments

4.92% 5.26%

1,538,063 6,306,277 2,121,881 9,966,221

2,096,044 2,096,044

PAGE 30 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 20. FINANCIAL INSTRUMENTS (cont.) (d) Fair Values The fair values of listed investments have been valued at the quoted market bid price at reporting 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 Groupâ&#x20AC;&#x2122;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 Groupâ&#x20AC;&#x2122;s financial assets and financial liabilities at reporting date 2011 Carrying Amount $ Consolidated Financial assets Cash Trade and other receivables Other financial assets Financial liabilities Trade and other payables Refundable accommodation bonds Parent Entity Financial assets Cash Trade and other receivables Other financial assets Financial liabilities Trade and other payables

Fair Value $

2010 Carrying Amount $

Fair Value $

35,946,641 1,446,148 4,325,483 41,718,272

35,946,641 1,408,648 4,278,943 41,634,232

26,846,883 1,264,157 8,206,477 36,317,517

26,846,883 1,231,439 7,070,694 35,149,016

3,292,340 13,493,420 16,785,760

1,997,594 13,203,301 15,200,895

9,169,824 681,433 2,003,200 11,854,457

9,169,824 681,433 1,953,160 11,804,417

4,876,620 555,066 6,245,804 11,677,490

4,876,620 555,066 6,068,024 11,499,710

1,459,035 1,459,035

861,464 861,464

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 31

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: • The Society contributed $330,000 of funds raised from the 2010 CEO Sleepout to VincentCare Victoria after deducting expenses incurred; • The Society received from VincentCare Victoria $50,000 (2010: $50,000) for the rental of the office premises at Prospect Street, Box Hill; • The Society paid VincentCare Victoria $44,958 (2010: received $72,033) for the management of shared services; and • The Society purchased goods totalling $51,276 (2010: $88,006) from VincentCare Victoria. The amount receivable from VincentCare Victoria is $58,133 (2010: payable $54,489). During the financial year: • The Society contributed a further $1,391,446 (2010: $1,674,642) to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9; and • The Society received interest income of $263,664 (2010: $130,174) from St Vincent de Paul Victoria Endowment Fund. The net amount payable to St Vincent de Paul Victoria Endowment Fund is $1,120,744 (2010: $1,468,270).

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.

VincentCare Victoria For management purposes, the entity is organised into three major operating divisions, being Residential 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. 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 on the following page.

VincentCare 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 on the following page.

PAGE 32 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 22. SEGMENT REPORTING (cont.) Primary reporting â&#x20AC;&#x201C; business segments entres of Conferences Residential C C ommunity Community Disability Elimination Consolidated Charity & Councils A ged Care Services Housing E mployment Services $ $ $ $ $ $ $ $ 2011 REVENUE Fundraising activities Government grants Sale of goods Client / resident fees Accommodation bond retentions Accommodation charge Interest and other investment income Sundry income Net (loss)/gain on sale of property, plant & equipment Total segment revenue

26,354,168 -

7,728,535 893,448 545,351 -

475,342 12,374,114 4,680,381

683,777 8,484,078 838,127

8,599,775 24,329,453 27,706,758 5,518,508

- -

328,145

- 342,349

- -

342,349

791,936 1,165,100 178,868 521,001 666,140 1,080,695

127,076

(50,703 ) 26,303,465

(21,644 )

(4,561 )

10,607,347 20,009,927 11,260,984

RESULT Segment (deficit)/ surplus

(892,878 )

2,347,990 179,010 978,713

23,721,988

18,219,311 39,646,235 14,068,197

Depreciation and amortisation of segment assets

(330,000 ) (51,276 ) -

- 328,145

LIABILITIES Segment liabilities Unallocated Group liabilities Consolidated total liabilities

42,121 692,937 858,515 -

OTHER INCOME Changes in value of investment

ASSETS Segment assets Unallocated Group assets Consolidated total assets

1,884,876 -

16,163

13 22,760 - 8,179 (50,000 ) -

(4,585 ) -

1,884,889 1,619,927 (431,276 )

2,158,677 2,226,015 45,583 71,255,263

- -

16,163

(52,605 ) -

2,560,230

15,000 1,308,735 (1,178,877 )

95,800,589 25,418,115 121,218,704

2,032,205

1,945,705 16,486,830 3,249,084

506,683 269,758 (1,178,877 )

23,311,388 830,502 24,141,890

1,352,980

Acquisition of noncurrent segment assets 789,647 Unallocated Group acquisition of noncurrent assets

568,474 1,158,483 585,051

- 72,341 -

3,737,329

373,971 1,176,718 2,483,739

- 511,126 -

5,335,201 103,275 5,438,476

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 33

Centres of C onferences R esidential C ommunity Community Disability E limination Consolidated Charity & Councils Aged Care Services Housing E mployment Services $ $ $ $ $ $ $ $ 2010 REVENUE Fundraising activities - 7,755,147 1,241,437 Government grants - 824,714 11,457,818 Sale of goods 24,723,554 546,195 Client / resident fees - - 4,383,660 Accommodation bond retentions - - 355,094 Accommodation charge - - 213,987 Interest and other investment income - 483,599 871,125 Sundry income - 753,443 11,332 Net gain/(loss) on sale of property, plant & equipment 868,868 (17,308 ) (10,482 ) Total segment revenue 25,592,422 10,345,790 1 8,523,971 OTHER INCOME Changes in value of investment RESULT Segment surplus/ (deficit) Unallocated deficit Consolidated total surplus ASSETS Segment assets Unallocated Group assets Consolidated total assets LIABILITIES Segment liabilities Unallocated Group liabilities Consolidated total liabilities Depreciation and amortisation of segment assets Acquisition of noncurrent segment assets Unallocated Group acquisition of noncurrent assets

(24,629 )

289,401 (2,133,607 ) 1,661,785

1,590,957 9,628,348 748,020

1,022,935 -

149,132 693,745 866,862 -

(88,006 ) -

10,736,673 23,627,560 26,048,605 5,131,680

- -

355,094

- -

213,987

161,486 1,172,627

- 1,852

(7,423 ) 13,294,015

22,357 1,538,567 8,503 (1,146,820 ) 800,937 (373 ) -

833,282

1,024,787 1,740,226 (1,234,826 ) 69,286,385

1,836,952

- -

165,728

(24,629 )

1,820,259 (391,902 ) 1,428,357

24,213,004 17,522,341 41,254,483 11,842,800

56,650

946,310 (1,722,756 ) 94,112,832 22,391,529 116,504,361

1,690,702 2,411,987 15,838,401

2,593,089

37,010

249,420 (1,722,756 ) 21,097,853 889,924 21,987,777

1,251,281 524,583

1,054,970

498,493

54,850 -

3,384,177

2,451,882 1,295,510

782,218

1,342,587

46,173 -

5,918,370

Secondary reporting â&#x20AC;&#x201C; geographic segment St Vincent de Paul Society Victoria Inc. operates within Australia. VincentCare Victoria operates within Australia. VincentCare Community Housing operates within Australia. St Vincent de Paul Victoria Endowment Fund operates within Australia. Society of St Vincent de Paul (Victoria) operates within Australia.

530,969 6,449,339

PAGE 34 help someone see a better future | 2O1O-2O11 financial report

NOTES TO THE FINANCIAL STATEMENTS (cont.) FOR THE YEAR ENDED 30 JUNE 2011

Note 23. ECONOMIC DEPENDENCY A significant portion of the revenue of the subsidiary, VincentCare Victoria, 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 No matter or circumstance has arisen since 30 June 2011 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.

ST VINCENT DE PAUL SOCIETY victoria inc. PAGE 35

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 34: 1. Presents a true and fair view of the financial position of the St Vincent de Paul Society Victoria Inc. as at 30 June 2011 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 2011

John Hayes Treasurer

PAGE 36 help someone see a better future | 2O1O-2O11 financial report

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia

Independent Auditor’s Report to the members of St Vincent de Paul Society Victoria Inc.

Tel: +61 (0) 3 9671 7000 Fax: +61 (03) 9671 7001 www.deloitte.com.au

We have audited the accompanying financial report of the St Vincent de Paul Society Victoria Inc., which comprises the consolidated statements of financial position as at 30 June 2011, the consolidated statements of comprehensive income, the consolidated statements of cash flows and the consolidated statements of changes in equity for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Statement by State Council of the consolidated entity comprising the association 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 35.

The State Council’s Responsibility for the Financial Report The State Council is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards, the Associations Incoporations Act (Vic) 1981, and for such internal control as the State Council determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards and the Associations Incoporations Act (Vic) 1981. Those 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.

Opinion In our opinion, the financial report of the St Vincent de Paul Society Victoria Inc. presents fairly, in all material respects, the association’s and consolidated entity’s financial position as at 30 June 2011 and their financial performance for the year ended in accordance with Australian Accounting Standards and the Association Incorporations Act (Vic) 1981.

Deloitte Touche Tohmatsu

Alison Brown Partner Chartered Accountants Melbourne, 24 September 2011

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu

How you can help You can help the St Vincent de Paul Society help others by:

Making a financial donation 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 Societyâ&#x20AC;&#x2122;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