2011-2012 Financial Report by Dianne Ballestrin

2011-2012 Financial Report

our compassion our commitment

Vinnies changes lives every day

St Vincent de Paul Society Victoria Inc. I 1

Contents Consolidated Statements of Comprehensive Income 2 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

2 I Vinnies changes lives every day I 2011-2012 Financial Report

Consolidated Statements of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2012

Note

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

Continuing Operations Revenue Fundraising

2(a)

11,068,431

8,599,775

9,194,428

7,728,535

Government grants

2(b)

26,048,715

24,329,453

691,161

893,448

Sale of goods

2(c)

29,859,250

27,706,758

29,047,754

26,899,519

Other revenue

2(d)

11,433,251

10,573,694

1,082,516

1,049,273

Net gain on sale of property, plant and equipment

2(e)

473,501

45,583

490,231

76,373

78,883,148

71,255,263

40,506,090

36,647,148

(19,689,394 )

(20,033,804 )

(18,009,567 )

(18,361,530 )

59,193,754

51,221,459

22,496,523

18,285,618

Total Revenue Cost of sales Cost of sales

3(a)

Gross Surplus

Fundraising/public relations

3(b)

(1,330,834 )

(1,431,904 )

(1,330,834 )

(1,431,904 )

Administration

3(c)

(2,910,875 )

(2,641,222 )

(3,101,366 )

(2,681,109 )

(4,241,709 )

(4,073,126 )

(4,432,200 )

(4,113,013 )

54,952,045

47,148,333

18,064,323

14,172,605

(9,759,696 )

(9,961,025 )

Total Funds Available for Client Activities

Client Services Expenses People in Need Services

3(e)

(9,137,944 )

(9,579,749 )

Aged Care Services

3(f)

(20,702,776 )

(18,078,159 )

Homelessness & Housing Services

3(g)

(12,949,363 )

(12,165,134 )

Support Services

3(h)

(3,035,893 )

(3,031,224 )

(3,035,893 )

(3,031,224 )

(45,825,976 )

(42,854,266 )

(12,795,589 )

(12,992,249 )

3(d)

(2,500,256 )

(1,750,000 )

6,625,813

2,544,067

5,268,734

1,180,356

(151,804 )

16,163

6,474,009

2,560,230

5,268,734

1,180,356

Impairment expenses Surplus 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 FOR YEAR

2(f)

The accompanying notes form part of these financial statements.

St Vincent de Paul Society Victoria Inc. I 3

Consolidated Statements of Financial Position AS AT 30 JUNE 2012

CONSOLIDATED ENTITY

PARENT ENTITY

Note

2012 $

2011 $

2012 $

2011 $

Cash and cash equivalents

45,535,484

35,946,641

15,136,601

9,169,824

Trade and other receivables

1,659,679

1,408,648

710,232

681,433

Inventories

226,893

216,614

206,552

201,587

Financial assets

2,943,523

3,825,483

3,200

2,003,200

992,000

763,051

767,259

586,097

51,357,579

42,160,437

16,823,844

12,642,141

CURRENT ASSETS

Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets

2,368,638

500,000

Investments in controlled entities

59,453,286

57,807,700

Property, plant & equipment

65,812,020

66,030,658

23,550,169

23,262,316

Intangible assets

10,646,770

12,527,609

64,179

131,122

78,827,428

79,058,267

83,067,634

81,201,138

130,185,007

121,218,704

99,891,478

93,843,279

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

3,663,377

3,292,340

3,356,800

2,579,779

Provisions

5,118,559

4,576,967

1,211,913

1,153,210

Other liabilities

17,045,895

15,643,135

135,317

246,479

25,827,831

23,512,442

4,704,030

3,979,468

806,453

629,548

203,344

148,441

806,453

629,548

203,344

148,441

26,634,284

24,141,990

4,907,374

4,127,909

103,550,723

97,076,714

94,984,104

89,715,370

34,847,484

35,127,015

14,993,173

15,120,900

68,703,239

61,949,699

79,990,931

74,594,470

103,550,723

97,076,714

94,984,104

89,715,370

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Reserves Retained earnings TOTAL EQUITY

The accompanying notes form part of these financial statements.

4 I Vinnies changes lives every day I 2011-2012 Financial Report

Consolidated Statements of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2012

Reserves (Note 16) Retained Earnings $

Asset Revaluation Reserve $

Capital Profits Reserve

Bequest Reserve

Flood Relief Appeal Reserve $

Fund-aFuture Reserve $

Share Revaluation Reserve $

Total

CONSOLIDATED ENTITY Balance at 1 July 2010

60,486,777 28,256,034

130,000

Surplus for the year

2,544,067

198,036 5,445,637 -

- 2,544,067

Other Comprehensive Income

16,163

- 16,163

Total Comprehensive Surplus

2,560,230

Transfer to Bequest Reserve

(679,113 )

679,113

Transfer to Flood Relief Appeal Reserve

(418,195 )

- 418,195

Balance at 30 June 2011

61,949,699

28,256,034

198,036 6,124,750 418,195

130,000

Surplus for the year

6,625,813

Other Comprehensive (Expense)

- (151,804 )

(151,804 )

Total Comprehensive Surplus

6,625,813

- (151,804 )

6,474,009

Transfer from Flood Relief Appeal Reserve

127,727

- (127,727 )

At 30 June 2012

68,703,239

28,256,034

198,036 6,124,750 290,468

- 94,516,484

- 97,076,714

130,000 (151,804 ) 103,550,723

PARENT ENTITY Balance at 1 July 2010

73,832,309 13,235,238

- 1,467,467

- 88,535,014

Surplus for the year

1,180,356

- 1,180,356

Total Comprehensive Surplus

1,180,356

Transfer to Flood Relief Appeal Reserve

(418,195 )

Balance at 30 June 2011

74,594,470

13,235,238

Surplus for the year

5,268,734

Total Comprehensive Surplus

1,180,356

- 418,195

- -

- 1,467,467 418,195

- 89,715,370

- 5,268,734

5,268,734

Transfer from Flood Relief Appeal Reserve

127,727

- (127,727 )

- -

At 30 June 2012

79,990,931

13,235,238

- 1,467,467 290,468

- 94,984,104

The accompanying notes form part of these financial statements.

5,268,734

St Vincent de Paul Society Victoria Inc. I 5

Consolidated Statements of Cash Flows FOR THE YEAR ENDED 30 JUNE 2012

Note

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

Cash flows From Operating Activities: Receipts from operating activities

67,225,502 60,908,239

29,215,177 26,676,248

Receipts from supporters

10,384,051

10,384,051 9,142,984

Payments to clients, suppliers and employees

(66,559,717 )

(62,409,069 )

Interest received

2,335,973

1,260,919

19(b)

13,385,809

8,903,073

Proceeds from sale of property, plant and equipment

1,313,774

603,489

Proceeds from investments

2,419,273

4,799,852 2,000,000 4,000,000

Payment for property, plant and equipment

(5,216,922 )

(5,419,211 )

(2,864,623 )

(1,144,353 )

Payments for intangible assets

(5,480 )

(19,265 )

(2,675 )

(19,265 )

Payments for investments

(3,323,774 )

(493,626 )

Capital contributed to subsidiaries

(1,530,860 )

(2,299,303 )

Net cash (used in)/provided by investing activities

(528,761 )

(1,158,957 )

1,086,257

Net cash provided by operating activities

9,142,984

(33,016,406 )

(33,089,788 )

542,912 477,503 7,125,734

3,206,947

Cash flows From Investing Activities:

(4,813,129 )

1,239,201 549,178

- -

Cash flows From Financing Activities: Proceeds from residentsâ&#x20AC;&#x2122; accommodation bonds

- 4,050,730 5,362,039 -

Repayment of residentsâ&#x20AC;&#x2122; accommodation bonds

(3,034,567 )

(4,636,593 )

Net cash provided by financing activities

1,016,163

725,446

Net increase in cash and cash equivalents

9,588,843

9,099,758

5,966,777 4,293,204

Cash and cash equivalents at the beginning of the financial year

35,946,641

26,846,883

9,169,824 4,876,620

19(a)

45,535,484

35,946,641

Cash and cash equivalents at the end of the financial year

The accompanying notes form part of these financial statements.

- - -

15,136,601

9,169,824

6 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012

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 28 September 2012. 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. Critical judgements in applying accounting policies The following are the critical judgements that the directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the consolidated financial statements. Doubtful debt provision Refer Note 6 for the doubtful debt provision disclosure.

Long service leave provision Refer Note 14 for long service leave provision disclosure.

Bed licences Refer Note 12 for the valuation of bed licences disclosure.

Property Refer Note 11 for the impairment of property disclosure.

St Vincent de Paul Society Victoria Inc. I 7

(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.

(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: â&#x20AC;˘ the Group obtains control of the grant funds or the right to receive the grant funds; â&#x20AC;˘ it is probable that the economic benefits comprising grants will flow to the Group; and â&#x20AC;˘ 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 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, residents with outstanding bonds, and other investment income, 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.

8 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (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’. Held to maturity investments 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. Held-to-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.

St Vincent de Paul Society Victoria Inc. I 9

(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 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.

10 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (i) Intangibles (cont.) 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 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.

St Vincent de Paul Society Victoria Inc. I 11

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. 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’

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.

Amendments to AASB 101 ‘Presentation of Financial Statements’

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.

AASB 1054 ‘Australian Additional Disclosures’ and AASB 2011-1 ‘Amendments to Australian Accounting Standards arising from Trans-Tasman Convergence Project’

AASB 1054 sets out the Australian-specific disclosures for entities that have adopted Australian Accounting Standards. This Standard contains disclosure requirements that are in addition to IFRSs in areas such as compliance with Australian Accounting Standards, the nature of financial statements (general purpose or special purpose), audit fees, imputation (franking) credits and the reconciliation of net operating cash flow to profit (loss). AASB 2011-1 makes amendments to a range of Australian Accounting Standards and Interpretations for the purpose of closer alignment to IFRSs and harmonisation between Australian and New Zealand Standards. The Standard deletes various Australian-specific guidance and disclosures from other Standards (Australian-specific disclosures retained are now contained in AASB 1054), and aligns the wording used to that adopted in IFRSs. The application of AASB 1054 and AASB 2011-1 in the current year has resulted in the simplification of disclosures in regards to audit fees, franking credits and capital and other expenditure commitments as well as an additional disclosure on whether the Group is a forprofit or not-for-profit entity.

AASB 124 ‘Related Party Disclosures’ (revised December 2009)

AASB 124 (revised December 2009) has been revised on the following two aspects: (a) AASB 124 (revised December 2009) has changed the definition of a related party and (b) AASB 124 (revised December 2009) introduces a partial exemption from the disclosure requirements for government-related entities. The Company and its subsidiary are not government-related entities. The application of the revised definition of related party set out in AASB 124 (revised December 2009) in the current year has not resulted in the identification of related parties that were not identified as related parties under the previous Standard.

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.

12 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (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 2009-14 ‘Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement’

Interpretation 114 addresses when refunds or reductions in future contributions should be regarded as available in accordance with paragraph 58 of AASB 119; how minimum funding requirements might affect the vailability of reductions in future contributions; and when minimum funding requirements might give rise to a liability. The amendments now allow recognition of an asset in the form of prepaid minimum funding contributions. The application of the amendments to Interpretation 114 has not had material effect on the Group’s consolidated financial statements.

AASB 2009-12 ‘Amendments to Australian Accounting Standards’

The application of AASB 2009-12 makes amendments to AASB 8 ‘Operating Segments’ as a result of the issuance of AASB 124 ‘Related Party Disclosures’ (2009). The amendment to AASB 8 requires an entity to exercise judgement in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures. The Standard also makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations. The application of AASB 2009-12 has not had any material effect on amounts reported in the Group’s consolidated financial statements.

AASB 2010-5 ‘Amendments to Australian Accounting Standards’

The Standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations. The application of AASB 2010-5 has not had any material effect on amounts reported in the Group’s consolidated financial statements.

AASB 2010-6 ‘Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets’

The application of AASB 2010-6 makes amendments to AASB 7 ‘Financial Instruments – Disclosures’ to introduce additional disclosure requirements for transactions involving transfer of financial assets. These amendments are intended to provide greater transparency around risk exposures when a financial asset is transferred and derecognised but the transferor retains some level of continuing exposure in the asset. To date, the Group has not entered into any transfer arrangements of financial assets that are derecognised but with some level of continuing exposure in the asset. Therefore, the application of the amendments has not had any material effect on the disclosures made in the consolidated 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 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 10 ‘Consolidated Financial Statements’ AASB 11 ‘Joint Arrangements’ AASB 12 ‘Disclosure of Interests in Other Entities’ AASB 127 ‘Separate Financial Statements’ (2011) AASB 128 ‘Investments in Associates and Joint Ventures’ (2011) AASB 13 ‘Fair Value Measurement’ and AASB 2011-8 ‘Amendments to Australian Accounting Standards arising from AASB 13’ AASB 119 ‘Employee Benefits’ (2011) and AASB 2011-10 ‘Amendments to Australian Accounting Standards arising from AASB 119 (2011)’ AASB 2011-4 ‘Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements’ AASB 2011-7 ‘Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements standards’ AASB 2011-9 ‘Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income’

Effective for Expected to be annual reporting initially applied periods beginning in the financial on or after year ending 1 January 2013 30 June 2014 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013 1 January 2013

30 June 2014 30 June 2014 30 June 2014 30 June 2014 30 June 2014 30 June 2014

1 January 2013

30 June 2014

1 July 2013

30 June 2014

1 January 2013

30 June 2014

1 July 2012

30 June 2013

St Vincent de Paul Society Victoria Inc. I 13

At the date of authorisation of the financial statements, the following IASB Standards and IFRIC Interpretations were also in issue but not yet effective, although Australian equivalent Standards and Interpretations have not yet been issued. Standard

Effective for annual reporting periods beginning on or after

Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32)

1 January 2014

30 June 2015

Disclosures – Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)

1 January 2013

30 June 2014

Mandatory Effective Date of IFRS 9 and Transition Disclosures (Amendments to IFRS 9 and IFRS 7)

1 January 2015

30 June 2016

Expected to be initially applied in the financial year ending

CONSOLIDATED ENTITY 2012 $

CONSOLIDATED ENTITY 2011 $

PARENT ENTITY 2012 $

PARENT ENTITY 2011 $

4,909,165 6,159,266 11,068,431

2,562,485 6,037,290 8,599,775

3,532,267 5,662,161 9,194,428

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

691,161 10,891,753 13,783,612 682,189 26,048,715

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

691,161 691,161

893,448 893,448

28,391,229 319,556 336,969 811,496 29,859,250

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

28,391,229 319,556 336,969 29,047,754

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

5,663,373 315,162 467,161 1,763,196 341,213 222,231

5,518,508 328,145 342,349 1,450,343 366,880 205,816

269,059 313,681 -

198,408 264,821 -

209,647 2,451,268 11,433,251

135,638 2,226,015 10,573,694

1,314 498,462 1,082,516

65,043 521,001 1,049,273

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

473,501

45,583

490,231

76,373

TOTAL REVENUE

78,883,148

71,255,263

40,506,090

36,647,148

OTHER INCOME/(EXPENSES) (f) Changes in fair value of financial assets designated as at fair value through Statement of Comprehensive Income

(151,804 )

16,163

Note 2. REVENUE AND OTHER INCOME (a) Fundraising activities Bequests Donations (b) Government grants Councils/Conferences/Centres Community Services Residential 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

14 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

Employee salaries & benefits

8,537,516

8,445,476

7,230,577

7,156,654

Cost of goods sold â&#x20AC;&#x201C; purchases/materials

1,647,719

2,210,807

1,565,094

2,092,431

79,006

72,341

811

9,425,153

9,304,369

9,213,896

9,112,445

19,689,394

20,033,804

18,009,567

18,361,530

Employee salaries & benefits

582,047

621,325

582,047

621,325

Promotion

206,919

225,425

206,919

225,425

Other

541,868

585,154

541,868

585,154

1,330,834

1,431,904

1,330,834

1,431,904

98,850

85,169

98,850

85,169

Note 3. OPERATING SURPLUS/(DEFICIT) Operating expenses (a) Cost of sales

Depreciation and amortisation Construction costs expensed Selling & Administration

(b) Fundraising/public relations

114,171

48,427

83,386

43,436

Employee salaries & benefits

1,401,296

1,186,191

1,401,296

1,186,191

Depreciation & amortisation

318,932

350,956

318,932

350,956

Insurance

211,881

206,720

211,881

206,720

43,385

44,236

43,385

44,236

157,460

188,993

157,460

188,993

9,800

8,890

9,800

8,890

Telephone

41,927

36,033

41,927

36,033

Training

90,334

92,399

90,334

92,399

3,969

4,506

3,969

4,506

75,879

112,672

297,155

157,550

342,991

276,030

342,991

276,030

2,910,875

2,641,222

3,101,366

2,681,109

1,750,000

750,256

2,500,256

1,750,000

832,344

878,401

832,344

878,401

27,494

33,194

27,494

33,194

4,533,698

4,697,610

4,533,698

4,697,610

Motor vehicle running costs Printing/Postage/Office supplies Repairs & maintenance

Travel & accommodation Other â&#x20AC;&#x201C; includes Shared Services costs State Council

(d) Impairment expenses Impairment of Aged Care bed licences Impairment of properties

(e) People in Need Services Accommodation/Transport Cash Food vouchers

St Vincent de Paul Society Victoria Inc. I 15

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

(e) People in Need Services (cont.) Food purchases

1,313,324

1,296,194

1,313,324

1,296,194

Whitegoods

514,777

545,196

514,777

545,196

Utilities

405,511

430,658

405,511

430,658

Medical

144,859

129,884

144,859

129,884

Education

460,631

466,208

460,631

466,208

6,650

14,416

6,650

14,416

Compassionate Youth

77,250

71,590

77,250

71,590

Bushfire & flood relief

127,727

279,246

127,727

279,246

Overseas

569,243

510,614

569,243

510,614

Bursary

33,482

42,497

33,482

42,497

Sundry

90,954

184,041

712,706

565,317

9,137,944

9,579,749

9,759,696

9,961,025

833,167

780,750

(f) Residential Aged Care Services Catering & Food Cleaning

414,719

359,736

1,331,232

1,158,483

13,816,417

12,154,602

Occupancy

304,097

160,320

Medical & other supplies

500,746

413,015

Legal & Audit

355,104

220,194

Depreciation Employee salaries & benefits

Motor vehicle running costs

53,149

53,446

Repairs & maintenance

643,074

493,806

Resident amenities

304,782

276,843

42,322

38,645

Utilities

519,953

497,815

Workcover

315,056

314,320

70,895

65,980

Telephone

Interest paid â&#x20AC;&#x201C; other persons Other

1,198,063

1,090,204

20,702,776

18,078,159

277,649

283,573

2,085,036

1,763,508

660,422

585,051

8,147,015

7,522,741

Occupancy

244,685

222,616

Legal & Audit

190,067

150,380

Motor vehicle running costs

152,640

175,596

Repairs & maintenance

239,062

362,681

(g) Homelessness & Housing Services Cleaning/Waste removal Client support/Emergency accommodation Depreciation Employee salaries & benefits

16 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

87,318

98,768

247,286

237,445

618,171

762,770

12,949,363

12,165,134

208,467

202,395

208,467

202,395

1,151,930

1,171,107

1,151,930

1,171,107

Conference Support – other

322,261

326,061

322,261

326,061

State, National, International Councils

547,904

603,264

547,904

603,264

Conference operating costs

805,331

728,397

805,331

728,397

3,035,893

3,031,224

3,035,893

3,031,224

72,257,335

68,711,196

35,237,356

35,466,792

3,840,705

3,605,916

1,827,799

1,828,516

127,372

131,413

69,618

92,938

13,271

9,185

101,116

4,781

4,151

3,885

- Minimum lease payments

3,986,975

3,868,229

3,795,926

3,666,982

Employee salaries & benefits

32,484,291

29,930,335

9,213,920

8,964,170

91,711

91,293

47,711

28,793

19,350

91,711

110,643

47,711

28,793

40,649,592

37,664,387

14,954,974

14,581,399

473,501

45,583

490,231

76,373

Note 3. OPERATING SURPLUS/ (DEFICIT) (cont.) (g) Homelessness & Housing Services (cont.) Telephone Utilities Interest paid – other persons Other

(h) Support Services Accounting & payroll support Conference Support – employee salaries & benefits

(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

Remuneration of Auditor - Audit - Contract management review

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

St Vincent de Paul Society Victoria Inc. I 17

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

Note 4. KEY MANAGEMENT PERSONNEL COMPENSATION Short-term employee benefits - Salary & Fees

2,028,665

1,908,785

980,154

953,276

- Non-Cash Benefits

117,858

165,600

48,000

73,200

175,001

171,791

86,413

85,795

2,321,524

2,246,176

1,114,567

1,112,271

55,196

54,463

39,506

38,823

Councils & Central Office

1,301,254 1,011,871

1,301,254

1,011,871

VincentCare Victoria

2,239,594

1,319,232

SVDP Victoria Endowment Fund

737,636

2,069,098

Society of St Vincent de Paul (Victoria)

Post-employment benefits - Superannuation

Note 5. CASH AND CASH EQUIVALENTS Cash on hand Cash deposits with banks

4,875 4,874

Term Deposits Councils, Central Office & Conferences

13,795,841

8,119,130

13,795,841

8,119,130

VincentCare Victoria

26,901,088

22,867,973

SVDP Victoria Endowment Fund

500,000

45,535,484

35,946,641

15,136,601

9,169,824

Trade debtors (i)

859,197

840,878

122,316

200,261

Allowance for doubtful debts

(138,616 )

(37,500 )

720,581

803,378

122,316

200,261

Other debtors

939,098

605,270

587,916

423,039

Amount receivable from VincentCare Victoria

58,133

Total Current Receivables

1,659,679

1,408,648

710,232

681,433

Note 6. TRADE AND OTHER RECEIVABLES

(i) The average credit period on sale of goods and rendering of services is 30-60 days. No interest is charged on the trade receivables. An allowance has been made for estimated irrecoverable trade receivable amounts arising from the sale of goods and rendering of services, determined by reference to past default experience.

Included in the Groupâ&#x20AC;&#x2122;s trade receivable balance are debtors with a carrying amount of $55,082 (2011: $1,532) 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 116 days (2011: 109 days).

18 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

11,832

156

1,889

Note 6. TRADE AND OTHER RECEIVABLES (cont.) Ageing of past due debtors 61 - 90 days

26,593

Over 90 days

188,086

27,200

20,825

214,679

39,032

20,981

1,889

Balance at the beginning of the year

37,500

32,719

Impairment losses recognised on receivables

107,816

24,300

Impairment losses written off against allowance for doubtful debts

(519 )

Impairment losses reversed

(6,700 )

(19,000 )

Balance at the end of the year

138,616

37,500

Movement in the allowance for doubtful debts

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.

Note 7. INVENTORIES Finished goods

226,893

216,614

206,552

201,587

Note 8. OTHER FINANCIAL ASSETS Held-to-maturity investments carried at amortised cost: CURRENT

2,000,000

Medium term notes

500,000

Medium term interest bearing securities

1,868,638

2,368,638

500,000

2,943,523

1,825,483

3,200

5,312,161

4,325,483

3,200

2,003,200

Current financial assets

2,943,523

3,825,483

3,200

2,003,200

Non-current financial assets

2,368,638

500,000

5,312,161

4,325,483

3,200

2,003,200

Medium term notes NON-CURRENT

Financial assets carried at fair value through Statement of Comprehensive Income: CURRENT Shares in listed corporations

Disclosed in the financial statements as:

St Vincent de Paul Society Victoria Inc. I 19

Consolidated Entity 2012

Consolidated Entity 2011

Parent Entity 2012

Parent Entity 2011

Maturity Date

Units

2,000,000

Medium term notes Floating rate note Macquarie

(i)

31 May 2012

Floating rate note CBA Retail Bonds

(i)

24 Dec 2015

5,000

1,868,638

5,000

500,000

5,000

1,868,638

2,005,000

2,500,000

2,000,000

(i) The Group holds medium term notes and interest bearing securities returning a variable rate of interest. The weighted average rate on these securities is 5.50% (2011: 5.49%). The notes are redeemable at face value at maturity dates ranging between 1 to 42 months from reporting date. CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

59,453,286

57,807,700

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

Country of Incorporation

Percentage Owned

Parent Entity: St Vincent de Paul Society Victoria Inc.

Australia

100%

Controlled entities of St Vincent de Paul Society Victoria Inc. VincentCare Victoria Society of St Vincent de Paul (Victoria)

Australia

100%

St Vincent de Paul Victoria Endowment Fund

Australia

100%

VincentCare Community Housing

Australia

100%

During the financial year: The Society contributed a further $2,025,144 (2011: $1,391,446) to St Vincent de Paul Victoria Endowment Fund; The Society received interest income of $379,557 (2011: $263,664) from St Vincent de Paul Victoria Endowment Fund; and The Society contributed $nil (2011: $1,124,381) 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 an amount of untied bequests received will be channelled over a period of time, and remain within the fund with investment income flowing back to St Vincent de Paul Society Victoria Inc. or its controlled entities.

20 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY 2012 $

CONSOLIDATED ENTITY 2011 $

PARENT ENTITY 2012 $

PARENT ENTITY 2011 $

Note 10. OTHER ASSETS â&#x20AC;&#x201C; CURRENT GST recoveries

300,641

241,188

297,570

240,939

Prepayments

691,359 992,000

521,863 763,051

469,689 767,259

345,158 586,097

22,940,496

22,975,608

8,780,732

9,115,844

At cost

36,676,097

37,649,261

11,177,799

11,401,207

Buildings under construction

381,449

35,087

225,042

5,159

Less accumulated depreciation

(7,069,400 ) 29,988,146

(6,172,447 ) 31,511,901

(2,533,283 ) 8,869,559

(2,293,178 ) 9,113,188

At cost

5,107,871

3,377,688

1,925,763

1,030,059

Less accumulated depreciation

(1,222,687 ) 3,885,184

(832,938 ) 2,544,750

(340,201 ) 1,585,562

(219,954 ) 810,105

Note 11. PROPERTY, PLANT & EQUIPMENT LAND At cost BUILDINGS

BUILDING IMPROVEMENTS

LEASEHOLD IMPROVEMENTS At cost

2,814,238

2,745,701

1,937,751

1,870,564

Less accumulated depreciation

(1,487,758 ) 1,326,480

(1,071,181 ) 1,674,520

(1,258,597 ) 679,154

(917,867 ) 952,697

At cost

11,489,164

10,134,374

3,964,059

3,587,373

Less accumulated depreciation

(6,580,122 ) 4,909,042

(5,337,815 ) 4,796,559

(2,426,199 ) 1,537,860

(1,900,924 ) 1,686,449

FURNITURE, PLANT & EQUIPMENT

MOTOR VEHICLES At cost

6,076,703

5,380,886

4,663,847

3,857,102

Less accumulated depreciation

(3,634,914 ) 2,441,789

(3,401,182 ) 1,979,704

(2,695,661 ) 1,968,186

(2,534,712 ) 1,322,390

At cost

1,930,821

1,805,067

1,184,395

1,103,646

Less accumulated depreciation

(1,612,918 ) 317,903

(1,260,431 ) 544,636

(1,057,734 )

(844,458 )

126,661

259,188

2,980

2,455

65,812,020

66,030,658

23,550,169

23,262,316

COMPUTER HARDWARE

ARTWORK & ANTIQUITIES At cost

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 in the following pages.

St Vincent de Paul Society Victoria Inc. I 21

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

Total Land Carrying amount at beginning of financial year

22,975,608

22,247,852

9,115,844

8,966,841

Additions

300,000

578,753

Disposals

(335,112 )

(92,999 )

(335,112 )

(92,999 )

Transfer of Capital WIP

242,002

Carrying amount at end of financial year

22,940,496

22,975,608

8,780,732

9,115,844

Carrying amount at beginning of financial year

31,511,901

31,253,105

9,113,188

9,674,984

Additions

2,706,340

2,041,278

1,139,803

89,071

Transfer of Capital WIP

(2,346,208 )

(712,582 )

(919,920 )

(316,269 )

Transfer to Intangibles

(90,407 )

Disposals

(178,566 )

(46,835 )

(178,566 )

(46,835 )

Impairment loss recognised in Statement of Comprehensive Income

(750,256 )

Construction costs expensed

(13,271 )

(9,185 )

Less depreciation

(941,795 )

(923,473 )

(284,947 )

(287,763 )

29,988,145

31,511,901

8,869,558

9,113,188

Carrying amount at beginning of financial year

2,544,750

2,029,679

810,105

717,063

Additions

335,502

646,682

191,757

143,987

Transfer from Capital WIP

1,396,458

135,022

706,586

58,697

Reclassification

(1,015 )

36,138

(2,640 )

Disposals

(15,822 )

Less depreciation

(390,510 )

(286,949 )

(120,246 )

(93,820 )

Carrying amount at end of financial year

3,885,185

2,544,750

1,585,562

810,105

Carrying amount at beginning of financial year

1,674,520

2,036,204

952,697

1,255,605

Additions

14,823

37,073

13,473

23,477

Transfer from Capital WIP

55,395

15,570

55,395

15,570

Reclassifications

(1,680 )

Less depreciation

(416,578 )

(414,327 )

(340,731 )

(341,955 )

Carrying amount at end of financial year

1,326,480

1,674,520

679,154

952,697

Carrying amount at beginning of financial year

4,796,559

4,375,477

1,686,449

1,922,737

Additions

457,750

1,293,913

214,427

266,271

Transfer from Capital WIP

884,103

252,019

157,939

Disposals

(283 )

Reclassifications

11,642

(36,138 )

4,320

Less depreciation

(1,241,012 )

(1,088,429 )

(525,275 )

(502,276 )

Carrying amount at end of financial year

4,909,042

4,796,559

1,537,860

1,686,449

Total Buildings

Carrying amount at end of financial year Total Building Improvements

Total Leasehold Improvements

Total Furniture, Plant & Equipment

22 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

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

1,979,704

2,209,826

1,322,390

Additions

Disposals

1,287,004

681,374

1,224,415

553,687

(326,598 )

(401,967 )

(235,295 )

(316,870 )

Less depreciation

(498,321 )

(509,529 )

(343,324 )

(335,076 )

Carrying amount at end of financial year

2,441,789

1,979,704

1,968,186

1,322,390

Carrying amount at beginning of financial year

544,636

541,900

259,188

458,954

Additions

115,503

140,138

80,749

67,860

Transfer from Capital WIP

10,252

67,969

Transfer from Intangibles

177,838

Less depreciation

(352,488 )

(383,209 )

(213,276 )

(267,626 )

Carrying amount at end of financial year

317,903

544,636

126,661

259,188

2,980

2,455

Carrying amount at beginning of financial year

66,030,658

64,697,023

23,262,316

24,419,288

Additions

5,216,922

5,419,211

2,864,623

1,144,353

Disposals

(840,276 )

(557,906 )

(748,971 )

(472,809 )

Transfer from Intangibles

8,948

177,838

Impairment loss recognised in Statement of Comprehensive Income

(750,256 )

Transfer to Intangibles

(90,407 )

Construction costs expensed

(13,271 )

(9,185 )

Less depreciation

(3,840,705 )

(3,605,916 )

(1,827,799 )

(1,828,516 )

Carrying amount at end of financial year

65,812,020

66,030,658

23,550,169

23,262,316

1,420,649

Total Computer Hardware

Total Artwork & Antiquities Carrying amount at beginning and end of financial year Total Property, Plant & Equipment

An independent valuation of the Group’s land and buildings was performed by Knight Frank Health and Aged Care to determine the fair value of the land and buildings. Total current market value of the Group’s land and buildings is $87,385,000, which is greater than the carrying amount of $52,928,641. An impairment loss of $750,256 was recognised in respect of land and buildings. This loss is attributable to the decrease in the recoverable value of three properties located in Hamlyn Heights, Red Cliffs and North Melbourne. Both the market value and depreciated replacement cost of these properties were lower than their carrying values. Two properties are used in the Group’s Community Services reportable segment and one property is used in the Group’s Residential Aged Care reportable segment. The impairment loss has been included in the line item Impairment Expenses in the Statement of Comprehensive Income. In accordance with the accounting policy in Note 1(h), land and buildings have not been revalued to the current market value.

St Vincent de Paul Society Victoria Inc. I 23

CONSOLIDATED ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

Note 12. INTANGIBLES AGED CARE BED LICENCES

10,500,000

12,250,000

At cost

1,154,050

1,158,048

363,654

360,979

Less accumulated amortisation

(1,007,280 )

(880,439 )

(299,475 )

(229,857 )

146,770

277,609

64,179

131,122

10,646,770

12,527,609

64,179

131,122

Aged Care bed licences at cost COMPUTER SOFTWARE & IT DEVELOPMENT

Total Intangibles

Reconciliations Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the current and previous financial year are set out below: Aged Care Bed Licences Carrying amount at beginning of financial year

12,250,000

14,000,000

Impairment loss recognised in the Statement of Comprehensive Income

(1,750,000 )

Carrying amount at end of financial year

10,500,000

12,250,000

Carrying amount at beginning of financial year

277,609

477,188

131,122

204,795

Additions

5,480

19,265

2,675

19,265

Transfer from Capital WIP

90,407

Transfer to Computer Hardware

(8,947 )

(177,838 )

Less amortisation

(127,372 )

(131,413 )

(69,618 )

(92,938 )

Carrying amount at end of financial year

146,770

277,609

64,179

131,122

Carrying amount at beginning of financial year

12,527,609

14,477,188

131,122

204,795

Additions

5,480

19,265

2,675

19,265

Transfer from Capital WIP

90,407

Transfer to Computer Hardware

(8,947 )

(177,838 )

Impairment loss recognised in the Statement of Comprehensive Income

(1,750,000 )

Less amortisation

(127,372 )

(131,413 )

(69,618 )

(92,938 )

Carrying amount at end of financial year

10,646,770

12,527,609

64,179

131,122

Total Computer Software & IT Development

Total Intangibles

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 (2011: $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 current market indications. The impairment loss has been included in the line item Impairment Expenses in the Statement of Comprehensive Income.

24 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY 2012 $

CONSOLIDATED ENTITY 2011 $

PARENT ENTITY 2012 $

PARENT ENTITY 2011 $

1,922,399 865,089 738,359 -

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

1,225,575 463,462 348,755 83,539

893,512 238,963 326,560 -

- 137,530 3,663,377

95,752 3,292,340

1,235,469 3,356,800

1,120,744 2,579,779

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)

(a)

5,111,382

4,474,329

1,211,913

1,153,210

Other provision (ii)

(b)

7,177

102,638

5,118,559

4,576,967

1,211,913

1,153,210

(a)

806,453

629,548

203,344

148,441

5,917,835

5,103,877

1,415,257

1,301,651

NON-CURRENT Employee benefits (a) Aggregate Employee Entitlement Liability (b) Other provision Flood damage repairs (ii) Balance at 1 July 2011

102,638

Provision recognised

102,638

Reductions arising from payments

(95,461 )

Balance at 30 June 2012

7,177

102,638

(i) The current provision of employee benefits includes $4,221,817 (parent entity: $1,211,913) of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2011: $3,773,069 and $1,153,210 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 2013 is $7,177. The amount has not been discounted for the purpose of measuring the provision for flood damage repairs, because the effect is not material.

St Vincent de Paul Society Victoria Inc. I 25

CONSOLIDATED ENTITY 2012 $

CONSOLIDATED ENTITY 2011 $

PARENT ENTITY 2012 $

PARENT ENTITY 2011 $

14,069,912 2,930,584 45,399 17,045,895

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

135,317 135,317

246,479 246,479

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

Note 16. RESERVES Nature and purpose of reserves as disclosed in the Statement of Changes in Equity: Asset revaluation reserve $28,256,034 (2011: $28,256,034) – parent entity $13,235,238 (2011: $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 (2011: $198,036) – parent entity $Nil (2011: $Nil) Represents the capital value of land and building sold. Fund-a-Future reserve $130,000 (2011: $130,000) – parent entity $Nil (2011: $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 (2011: $6,124,750) – parent entity $1,467,467 (2011: $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. Flood Relief Appeal reserve $290,468 (2011: $418,195) – parent entity $290,468 (2011: $418,195) Represents funds set aside to assist Victorian Flood victims as they return to re-establish their homes and livelihood within their communities. Share Revaluation reserve $(151,804) (2011: $nil) - parent entity $nil (2011: $nil) Represents market-to-market value adjustments of available for sale investments.

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

50,083 50,000 100,083

50,083 100,000 150,083

100,083

150,083

The property leases are non cancellable leases spanning various terms with rental received monthly in advance.

26 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY 2012 $

CONSOLIDATED ENTITY 2011 $

PARENT ENTITY 2012 $

PARENT ENTITY 2011 $

Not later than one year

2,970,716

3,044,388

2,798,075

2,915,770

Later than one year but not later than 5 years

6,194,354

5,196,431

5,976,872

5,150,520

Later than five years

1,055,559

1,437,708

1,054,862

1,436,998

10,220,629

9,678,527

9,829,809

9,503,288

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

The property and equipment leases are non cancellable leases spanning various terms with rental paid monthly and quarterly in advance. This covers property and equipment leases for the Group. (b) Capital Commitments Capital expenditure commitments contracted for: Building works and refurbishment projects

36,840

Payable Not later than one year

St Vincent de Paul Society Victoria Inc. I 27

CONSOLIDATED ENTITY 2012 $

CONSOLIDATED ENTITY 2011 $

PARENT ENTITY 2012 $

PARENT ENTITY 2011 $

39,506

38,823

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

55,196

Cash deposits with banks

4,283,359

54,463

Bank term deposits

41,196,929

31,487,103

13,795,841

8,119,130

Balance per Statement of Cash Flows

45,535,484 35,946,641

15,136,601

9,169,824

4,405,075 1,301,254 1,011,871

(b) Reconciliation of cash flows from operations with total comprehensive income Total Comprehensive Income

6,474,009

2,560,230

5,268,734

1,180,356

Depreciation and amortisation

3,968,077

3,737,329

1,897,417

1,921,454

Construction costs expensed

13,271

9,185

Gain arising on maturity of medium term notes

(67,310 )

Net gain on sale of property, plant and equipment

(473,501 )

(45,583 )

(490,231 )

(76,373 )

Non-cash flows and non-operating activities in total comprehensive income

Net (gain)/loss on disposal of shares in listed corporations

28,696

(51,875 ) - (42,530 )

- 1,750,000 1,750,000 -

Impairment of Aged Care Bed licences

Impairment of properties

750,256

Change in fair value of financial assets designated as at fair value through statement of comprehensive income

151,804

(16,163 )

Bequests received in the form of shares in listed corporations

(262,678 )

(289,884 )

Residents’ accommodation bond retentions

(307,384 )

(321,052 )

Interest deducted from residents’ accommodation bond

(165,033 )

(162,187 )

Interest payable on refund of residents’ accommodation bond

14,676

47,912

(Increase) in receivables

(277,735 )

(168,716 )

(85,430 )

(117,624 )

Decrease/(increase) in inventories

(10,279 )

18,938

(4,965 )

11,780

Decrease/(increase) in prepayments

(169,496 )

38,255

(124,531 )

(29,613 )

Increase in payables and other liabilities

1,182,629

1,594,248

551,133

659,844

Increase/(decrease) in provisions

718,497

269,746

113,607

(10,463 )

Cash Flows from operations

- - -

Changes in assets and liabilities

13,385,809 8,903,073 7,125,734 3,206,947

28 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

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 long-term funding and liquidity management requirements. The Group manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. For further details on liquidity risk, refer to Note 20(c).

St Vincent de Paul Society Victoria Inc. I 29

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 $147,000 (2011: $91,000). The parent entity’s net surplus would respectively decrease or increase by approximately $160 (2011: net surplus would respectively decrease or increase by approximately $160). 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 non-derivative instruments at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates. At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant, the Group’s net surplus would respectively increase or decrease by approximately $223,000 (2011: $192,000). The parent entity’s net surplus would respectively decrease or increase by approximately $69,000 (2011: net surplus would respectively decrease or increase by approximately $56,000). This is mainly attributable to the Group’s exposure to interest rates on its financial instruments.

30 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

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

Weighted average effective interest rate

Floating Interest Rate

Fixed interest rate maturing in: 1 year or less

2012

2011

2012 $

2011 $

SVDP Inc.

4.34%

4.52%

2,513,327

VincentCare Victoria

4.08%

5.24%

SVDP VIC Endowment Fund

4.63%

5.21%

726,206

2,057,602

511,430

Society of SVDP (Victoria)

Non Interest bearing

Over 1 to 5 years

Total carrying amount as per the statement of financial position

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

3,336,616 11,282,514

4,782,514

1,340,760

1,050,694 15,136,601

9,169,824

- 29,134,225 24,181,638

22,147

511,496

1,237,636

2,569,098

4,875

4,874

4,875

4,874

710,232

681,433

710,232

681,433

1,009,474

784,377

1,009,474

784,377

78,589

38,471

78,589

38,471

(i) Financial Assets Cash

21,207 29,156,372 24,202,845

Trade and Other Receivables SVDP Inc. VincentCare Victoria SVDP VIC Endowment Fund Other Financial Assets SVDP Inc.

0.00%

5.36%

2,000,000

3,200

2,003,200

2.54%

1.28%

2,368,638

500,000

2,940,323

1,822,283

5,308,961

2,322,283

7,894,218 40,928,169 29,475,648

6,109,600

4,406,539 52,645,940 41,776,405

SVDP Inc.

2,037,792

1,459,035

2,037,792

1,459,035

VincentCare Victoria

1,625,485

1,833,205

1,625,485

1,833,205

100

VincentCare Victoria SVDP VIC Endowment Fund Total Financial Assets

5,608,171

(ii) Financial Liabilities Trade and Other Payables

SVDP VIC Endowment Fund Refundable Accommodation Bonds VincentCare Victoria

14,069,912 13,493,420 14,069,912 13,493,420

Total Financial Liabilities

17,733,289 16,785,760 17,733,289 16,785,760

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

St Vincent de Paul Society Victoria Inc. I 31

(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 $

17,733,289

16,785,760

3,356,800

2,579,779

Consolidated Entity 2012 Non-interest bearing 2011 Non-interest bearing Parent Entity 2012 Non-interest bearing 2011 Non-interest bearing

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 $

3,169,277

Variable interest rate instruments

3.97%

3,269,267

567,784

Fixed interest rate instruments

4.76%

41,531,387

47,969,930

567,784

2,526,372

Variable interest rate instruments

4.94%

7,507,794

627,692

Fixed interest rate instruments

5.30%

29,682,001

39,716,167

627,692

2,054,192

Variable interest rate instruments

3.25%

2,513,327

Fixed interest rate instruments

5.07%

11,471,224

16,038,742

1,677,194

Variable interest rate instruments

4.83%

5,444,376

Fixed interest rate instruments

5.48%

4,821,197

11,942,767

Consolidated Entity 2012 Non-interest bearing

2011 Non-interest bearing

Parent Entity 2012 Non-interest bearing

2011 Non-interest bearing

32 I Vinnies changes lives every day I 2011-2012 Financial Report

Notes to the Financial Statements (cont.) FOR THE YEAR ENDED 30 JUNE 2012

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 2012 Carrying Amount $

2011 Fair Value Carrying Amount $ $

Fair Value $

Consolidated Entity Financial assets Cash

45,535,484

35,946,641

Trade and other receivables

1,798,295

1,659,679

1,446,148

1,408,648

Other financial assets

5,312,161

4,325,483

4,278,943

52,645,940

52,507,324

41,718,272

41,634,232

3,663,377

3,292,340

14,069,912

13,493,420

17,733,289

16,785,760

15,136,601

9,169,824

710,232

681,433

3,200

2,003,200

1,953,160

15,850,033

11,854,457

11,804,417

2,037,792

1,459,035

2,037,792

1,459,035

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

St Vincent de Paul Society Victoria Inc. I 33

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 $511,142 (2011: $330,000) of funds raised from the 2011 CEO Sleepout to VincentCare Victoria after deducting expenses incurred; • The Society contributed $50,000 to VincentCare Victoria’s research project on Trauma & Homelessness in Victoria; • The Society received from VincentCare Victoria $50,000 (2011: $50,000) for the rental of the office premises at Prospect Street, Box Hill; • The Society paid VincentCare Victoria $220,346 (2011: $44,958) for the management of shared services; and • The Society purchased goods totalling $60,610 (2011: $51,276) from VincentCare Victoria. The amount payable to VincentCare Victoria is $83,539 (2011: receivable from VincentCare $58,133). During the financial year: • The Society contributed a further $2,025,144 (2011: $1,391,446) to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9; and • The Society received investment income of $379,557 (2011: $263,664) from St Vincent de Paul Victoria Endowment Fund. The net amount payable to St Vincent de Paul Victoria Endowment Fund is $1,235,469 (2011: $1,120,744).

Note 22. 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 23. 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 24. SUBSEQUENT EVENTS No matter or circumstance has arisen since 30 June 2012 that has significantly affected, or may significantly affect: (a) the consolidated operations in future financial years, or (b) the results of those operations in future financial years, or (c) the consolidated state of affairs in future financial years.

34 I Vinnies changes lives every day I 2011-2012 Financial Report

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

STATEMENT BY STATE COUNCIL In the opinion of the State Council the financial report as set out on pages 2 to 33: 1. Presents a true and fair view of the financial position of the St Vincent de Paul Society Victoria Inc. as at 30 June 2012 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 28th day of September 2012

John Hayes Treasurer

St Vincent de Paul Society Victoria Inc. I 35

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia Tel: +61 (0) 3 9671 7000 Fax: +61 (03) 9671 7001 www.deloitte.com.au

Independent Auditor’s Report to the members of St Vincent de Paul Society Victoria Inc. We have audited the accompanying financial report of St Vincent de Paul Society Victoria Inc., which comprises the statements of financial position as at 30 June 2012, the statements of comprehensive income, the statements of cash flows and the 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 34.

The State Council’s Responsibility for the Financial Report The State Council is responsible for the preparation and true and fair presentation of the financial report in accordance with Australian Accounting Standards, the Associations Incorporations 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. 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 St Vincent de Paul Society Victoria Inc presents a true and fair view, in all material respects, the association’s and consolidated entity’s financial position as at 30 June 2012 and their financial performance for the year then ended in accordance with Australian Accounting Standards.

DELOITTE TOUCHE TOHMATSU

Alison Brown Partner Chartered Accountants Melbourne, 28 September 2012

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

36 I Vinnies changes lives every day I 2011-2012 Financial Report

This page has been left blank intentionally.

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. 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 1300 305 330

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