2012-2013 Financial Report by Dianne Ballestrin

2012-2013 FINANCIAL REPORT

b Do something about it 2012-2013 Financial Report

CONTENTS Consolidated Statement of Profit or Loss and Comprehensive Income

Consolidated Statements of Financial Position

Consolidated Statements of Changes in Equity

Consolidated Statements of Cash Flows

Notes to the Financial Statements

Statement by State Council

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

St Vincent de Paul Society Victora Inc. 1

consolidated statement of profit or loss and comprehensive income FOR THE YEAR ENDED 30 JUNE 2013

Note

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

Continuing Operations Revenue Fundraising activities

2(a)

10,095,128

11,068,431

8,915,378

9,194,428

Government grants

2(b)

29,263,814

26,048,715

569,785

691,161

Sale of goods

2(c)

31,029,547

29,859,250

29,974,073

29,047,754

Other revenue

2(d)

12,427,749

11,433,251

1,504,220

1,082,516

Net gain on sale of property, plant and equipment

2(e)

413,986

473,501

413,986

490,231

83,230,224

78,883,148

41,377,442

40,506,090

3(a)

(22,032,935 )

(19,689,394 )

(20,215,720 )

(18,009,567 )

61,197,289

59,193,754

21,161,722

22,496,523

Fundraising/public relations

3(b)

(1,424,135 )

(1,330,834 )

(1,424,135 )

(1,330,834 )

Administration

3(c)

(3,633,243 )

(2,910,875 )

(4,051,058 )

(3,101,366 )

Impairment expenses

3(d)

(1,855,000 )

(2,500,256 )

People in need services

3(e)

(10,354,184 )

(9,137,944 )

(10,946,884 )

(9,759,696 )

Residential aged care services

3(f)

(23,502,887 )

(20,702,776 )

Accommodation and support services

3(g)

(14,903,314 )

(12,949,363 )

Other support services

3(h)

(3,326,861 )

(3,035,893 )

(3,326,861 )

(3,035,893 )

2,197,665

6,625,813

1,412,784

5,268,734

2(f)

812,346

(151,804 )

Other comprehensive income for the year

812,346

(151,804 )

TOTAL COMPREHENSIVE SURPLUS FOR YEAR

3,010,011

6,474,009

1,412,784

5,268,734

2,197,665

6,625,813

1,412,784

5,268,734

3,010,011

6,474,009

1,412,784

5,268,734

Total Revenue Cost of sales Gross Surplus

Surplus for year from continuing operations Other comprehensive income Changes in fair value of financial assets designated as at fair value through Statement of Comprehensive Income

Surplus for the year attributable to: Owners of the organisation Total comprehensive surplus attributable to: Owners of the organisation

The accompanying notes form part of these financial statements

2 Do something about it 2012-2013 Financial Report

consolidated statement of financial position AS AT 30 JUNE 2013 CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

Note

2013 $

2012 $

2013 $

2012 $

Cash and cash equivalents

43,182,279

45,535,484

13,554,835

15,136,601

Trade and other receivables

2,321,673

1,659,679

1,485,443

1,092,289

Inventories

126,333

226,893

106,061

206,552

Financial assets

5,425,519

2,943,523

3,200

890,399

992,000

700,327

767,259

51,946,203

51,357,579

15,849,866

17,205,901

CURRENT ASSETS

Other assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets

4,382,507

2,368,638

Investments in controlled entities

60,148,438

59,453,286

Property, plant & equipment

65,697,781

65,812,020

23,789,773

23,550,169

Intangible assets

8,730,584

10,646,770

56,650

64,179

78,810,872

78,827,428

83,994,861

83,067,634

130,757,075

130,185,007

99,844,727

100,273,535

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

2,862,035

3,663,377

1,667,730

3,738,857

Provisions

5,386,955

5,118,559

1,416,538

1,211,913

Other liabilities

14,988,668

17,045,895

116,978

135,317

23,237,658

25,827,831

3,201,246

5,086,087

958,683

806,453

246,593

203,344

958,683

806,453

246,593

203,344

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS

24,196,341

26,634,284

3,447,839

5,289,431

106,560,734

103,550,723

96,396,888

94,984,104

36,394,049

34,847,484

15,727,392

14,993,173

70,166,685

68,703,239

80,669,496

79,990,931

106,560,734

103,550,723

96,396,888

94,984,104

EQUITY Reserves

Retained earnings TOTAL EQUITY The accompanying notes form part of these financial statements

St Vincent de Paul Society Victora Inc. 3

consolidated statements of changes in equity FOR THE YEAR ENDED 30 JUNE 2013 Reserves Note 16 Retained Earnings $

Asset Revaluation Reserve $

Balance at 1 July 2011

61,949,699

28,256,034

Surplus for the year

6,625,813

- - 6,625,813

Other Comprehensive Income -

- (151,804 )

Total Comprehensive Surplus

6,625,813

- (151,804 ) 6,474,009

Transfer from Flood Relief Appeal Reserve

127,727

- (127,727 )

- - -

198,036 6,124,750 290,468

130,000

Capital Profits Reserve

Bequest Reserve

Flood Relief Appeal Reserve $

Fund-aWelfare/ Future Asylum Reserve Assistance Reserve $ $

Share Revaluation Reserve $

Total

CONSOLIDATED ENTITY

Balance at 30 June 2012 68,703,239 28,256,034

Surplus for the year

2,197,665

198,036 6,124,750 418,195

Total Comprehensive Surplus

2,197,665

Transfer to Welfare/Asylum Assistance Reserve

(1,024,687 )

Transfer from Flood Relief Appeal Reserve

290,468

At 30 June 2013

70,166,685 28,256,034

Other Comprehensive Income

130,000

- 97,076,714 (151,804 )

- (151,804 ) 103,550,723

- -

- 812,346 812,346

- 812,346 3,010,011

- (290,468 )

198,036 6,124,750

1,024,687

- 2,197,665

- -

- - -

130,000

1,024,687 660,542 106,560,734

- 1,467,467 418,195

- - 89,715,370

PARENT ENTITY Balance at 1 July 2011

74,594,470

13,235,238

Surplus for the year

5,268,734

- - 5,268,734

Total Comprehensive Surplus

5,268,734

- 5,268,734

Transfer to Flood Relief Appeal Reserve

127,727

- (127,727 )

- -

Balance at 30 June 2012 79,990,931

13,235,238

- 1,467,467 290,468

- 94,984,104

Surplus for the year

1,412,784

- -

- 1,412,784

Total Comprehensive Surplus

1,412,784

- 1,412,784

Transfer to Welfare/Asylum Assistance Reserve

(1,024,687 )

Transfer from Flood Relief Appeal Reserve

290,468

At 30 June 2013

80,669,496

13,235,238

The accompanying notes form part of these financial statements

4 Do something about it 2012-2013 Financial Report

- (290,468 )

- 1,467,467

- 1,024,687 -

- - -

1,024,687

- 96,396,888

consolidated statements of cash flows FOR THE YEAR ENDED 30 JUNE 2013

Note

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

Cash flows From Operating Activities: Receipts from operating activities

68,491,498 67,225,502 30,023,998 29,215,177

Receipts from supporters

10,500,709 10,384,051 10,500,709 10,384,051

Payments to clients, suppliers and employees

Interest received

542,912 2,061,848 2,335,973 495,805

Net cash provided by/(used in) operating activities

(75,015,754 )

(66,559,717 )

(38,348,442 )

(33,016,406 )

19(b) 6,038,301 13,385,809 2,672,070 7,125,734

Cash flows From Investing Activities: Proceeds from sale of property, plant and equipment

1,099,742 1,313,774 876,338 1,239,201

Proceeds from investments

1,290,081 2,419,273 - 2,000,000

Payment for property, plant and equipment

(4,848,429 )

(5,216,922 )

(2,637,244 )

(2,864,623 )

Payments for intangible assets

(57,461 )

(5,480 )

(57,461 )

(2,675 )

Payments for investments

(4,815,730 )

Capital contributed to subsidiaries

- - (2,435,469 )

(1,530,860 )

Net cash (used in)/provided by investing activities

(1,158,957 )

(7,331,797 )

(3,323,774 ) - - (4,813,129 )

(4,253,836 )

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

- 3,441,074 4,050,730 -

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

(4,500,783 )

Net cash provided by financing activities

(1,059,709 ) 1,016,163 - -

Net increase/(decrease) in cash and cash equivalents

(2,353,206 ) 9,588,843 (1,581,766 ) 5,966,777

Cash and cash equivalents at the beginning of the financial year

45,535,484 35,946,641 15,136,601 9,169,824

Cash and cash equivalents at the end of the financial year

(3,034,567 ) - -

19(a) 43,182,279 45,535,484 13,554,835 15,136,601

The accompanying notes form part of these financial statements

St Vincent de Paul Society Victora Inc. 5

notes to the financial statements FOR THE YEAR ENDED 30 JUNE 2013

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General information The St Vincent de Paul Society Victoria Inc. (“the Society”) is a non government welfare agency incorporated under the Associations Incorporation Reform Act 2012 and is domiciled in Australia. The Society’s registered office and it’s principal place of business are as follows:

Registered office

Principal place of business

43-45 Prospect Street, Box Hill VIC 3128 43-45 Prospect Street, Box Hill VIC 3128 Tel: (03) 9895 5800 Tel: (03) 9895 5800

Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards – Reduced Disclosure Requirements and the requirements of the Associations Incorporation Reform Act 2012 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 the Directors on 27 September 2013.

Basis of preparation The financial report has been prepared on an accruals basis and is based on historical costs, except for the revaluation of certain non-current assets and financial instruments. Historical cost is based on the fair values of the consideration given in exchange for assets.

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, the 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.

Early adoption of Accounting Standards The board has elected to apply AASB 1053 ‘Application of Tiers of Australian Accounting Standards’, AASB 2010-2 ‘Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements’ and AASB 2011-2 ‘Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements’ in advance of their effective dates. These standards are not required to be applied until annual reporting periods beginning on or after 1 July 2013. The impact of the adoption of these standards is disclosed in note 1(p) to the financial statements.

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

Long service leave provision

Refer Note 6 for the doubtful debt provision disclosure.

Refer Note 14 for long service leave provision disclosure.

Bed licences

Property

Refer Note 12 for the valuation of bed licences disclosure.

Refer Note 11 for the impairment of property disclosure.

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.

6 Do something about it 2012-2013 Financial Report

(a) Principles of consolidation The consolidated financial statements of St Vincent de Paul Society Victoria Inc comprise 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 an entity controlled by St Vincent de Paul Society Victoria Inc. Control exists where St Vincent de Paul Society Victoria Inc has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with St Vincent de Paul Society Victoria Inc to achieve the objectives of St Vincent de Paul Society Victoria Inc. A list of controlled entities is contained in Note 9. All inter-entity balances and transactions 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. The following specific recognition criteria must also be met before revenue is recognised:

Sale of goods Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer and can be measured reliably. Risks and rewards are considered passed to the buyer at the time of delivery and/or control of the goods has passed to the buyer.

Government grants Grants are principally of a recurrent or capital nature and intended to fund ongoing operations or asset acquisitions. Income from grants is measured at the fair value of the contributions received or receivable and only when all the following conditions have been satisfied: > the Group obtains control of the grant funds or the right to receive the grant funds; > it is probable that the economic benefits comprising grants will flow to the Group; and > the amount of the grant can be measured reliably. Government grants are recognised as revenue when the entity gains control of the funds.

Accommodation bonds Accommodation bonds received from incoming residents are held for each individual resident and are recognised as a current liability. Monthly retention fees are deducted from each bond account according to the statutory requirements and are recognised as revenue. Interest earned on all monies is recognised as revenue and is used in accordance with the prudential requirements.

Client contributions Client contributions by clients who have the capacity to pay are recognised when the service is provided.

Donations and bequests Revenue or capital assets arising from donations and bequests is recognised when control is obtained, as it is impossible for the Group to reliably measure these prior to this time. For example, cash donations are recognised when banked and other donations are recognised when title of possession transfers to the Group.

Interest revenue Revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

(c) Income tax The Group is exempt under the provisions of the Income Tax Assessment Act 1997, and as such is not subject to income taxes at this time. Accordingly, no income tax has been provided for the Group in these financial statements.

(d) Cash and cash equivalents Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash, which are subject to an insignificant risk of changes in value and have a maturity of three months or less at the date of acquisition. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

St Vincent de Paul Society Victora Inc. 7

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (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. Financial assets are classified into the following specified categories: ‘term deposits’ and ‘loans and receivables’.

Term deposits Investments in term deposits are measured on the cost basis.

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 period. 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 that estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

(f) 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.

8 Do something about it 2012-2013 Financial Report

(g) 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 or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the 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 profit or loss. The following depreciation rates and methods are used in the calculation of depreciation: Class of property, plant and equipment

Depreciation rates and method

Buildings

1% to 2.5% straight line

Building Improvements

10% straight line

Leasehold Improvements

Over the term of the lease

Furniture, Plant & Equipment

7% to 20% straight line

Computer Hardware & Software

33% straight line

Motor Vehicles

15% to 20% straight line

Artwork and antiquities are not depreciated. Land is not a depreciable asset.

(h) Intangible assets Intangible assets are only recognised if they meet the identifiability criteria, that it is separable from the Group and arises from contractual or other legal rights. Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over their estimated useful lives.

Computer software Computer software that is not integral to the operation of a related piece of hardware or plant is classified as an intangible (for example, accounting systems software), and is initially recognised at cost. Subsequent to initial recognition, computer software is carried at its cost less accumulated amortisation and impairment losses. Computer software has a finite life, and is amortised on a systematic basis over its estimated useful life, being on a straight line basis over 3 years.

Aged Care bed licences Bed licences that are purchased are initially recorded at cost. Bed licences that are received for no consideration are recognised at their fair value through the Statement of Profit and Loss and Other Comprehensive Income 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 the fair value at the date of acquisition), less any impairment losses.

St Vincent de Paul Society Victora Inc. 9

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (i) Impairment The carrying values of tangible and intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount. At each reporting date, the Directors review a number of factors affecting tangible and intangibles assets, including property, plant and equipment, 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 Profit or Loss and Other Comprehensive Income as an impairment expense. As the future economic benefits of the Group’s assets are not primarily dependent on their ability to generate net cash inflows, and if deprived of the asset, the Group would replace the asset’s remaining future economic benefits, ‘value in use’ may be determined as the depreciated replacement cost of the asset, rather than by using discounted future cash flows. Depreciated replacement cost is defined as the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. The current replacement cost of an asset is its cost measured by reference to the lowest cost at which the future economic benefits of that asset could currently be obtained in the normal course of business. Impairment losses are recognised in the Statement of Profit or Loss and Other Comprehensive Income.

(j) Inventories Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Where inventories are held for distribution or are to be consumed by the Group in providing services or aid at no or nominal charge, they are valued at the lower of cost and replacement cost.

(k) 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.

(l) 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.

(m) 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.

(n) 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 terms on the same basis as the lease income. Operating lease payments are recognised as an expense in the Statement of Profit or Loss and Other Comprehensive Income on a straight-line basis over the lease term. Finance leases, which transfer to the Group substantially all the risks and benefits included in ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

(o) 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. 10 Do something about it 2012-2013 Financial Report

(p) 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 year and have affected the amounts reported in these financial statements.

Standards affecting presentation and disclosure Standard Amendments to AASB 101 ‘Presentation of Financial Statements’

The amendments (part of AASB 2011-9 ‘Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income’) introduce new terminology for the statement of comprehensive income and income statement. Under the amendments to AASB 101, the statement of comprehensive income is renamed as a statement of profit or loss and other comprehensive income and the income statement is renamed as a statement of profit or loss. The amendments to AASB 101 retain the option to present profit or loss and other comprehensive income in either a single statement or in two separate but consecutive statements. However, the amendments to AASB 101 require items of other comprehensive income to be grouped into two categories in the other comprehensive income section: (a) items that will not be reclassified subsequently to profit or loss and (b) items that may be reclassified subsequently to profit or loss when specific conditions are met. Income tax on items of other comprehensive income is required to be allocated on the same basis – the amendments do not change the option to present items of other comprehensive income either before tax or net of tax. The amendments have been applied retrospectively, and hence the presentation of items of other comprehensive income has been modified to reflect the changes. Other than the above mentioned presentation changes, the application of the amendments to AASB 101 does not result in any impact on profit or loss, other comprehensive income and total comprehensive income. The amendments (part of AASB 2012-5 ‘Further Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle’) require an entity that changes accounting policies retrospectively, or makes a retrospective restatement or reclassification to present a statement of financial position as at the beginning of the preceding period (third statement of financial position), when the retrospective application, restatement or reclassification has a material effect on the information in the third statement of financial position.The related notes to the third statement of financial position are not required to be disclosed.

AASB 1053 ‘Application of Tiers of Australian Accounting Standards’ and AASB 2010-2 ‘Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements’ (these standards have been adopted in advance of their effective date of 1 July 2013)

AASB 1053 establishes a differential financial reporting framework consisting of two tiers of reporting requirements for general purpose financial statements, comprising Tier 1: Australian Accounting Standards and Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements (RDR). AASB 2010-2 makes amendments to each Standard and Interpretation indicating the disclosures not required to be made by ‘Tier 2’ entities or inserting ‘RDR’ paragraphs requiring simplified disclosures for ‘Tier 2’ entities. The adoption of these standards has resulted in significantly reduced disclosures, largely in respect of income tax, segments, impairment, related parties, share-based payments, financial instruments and cashflows.

AASB 1054 ‘Australian Additional Disclosures’, AASB 2011-1 ‘Amendments to Australian Accounting Standards arising from Trans-Tasman Convergence Project’ and AASB 2011-2 ‘Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements’ (AASB 2011-2 has been adopted in advance of its effective date of 1 July 2013)

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. AASB 2011-2 establishes reduced disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements in relation to the Australian additional disclosures arising from the Trans-Tasman Convergence Project. The application of AASB 1054, AASB 2011-1 and AASB 2011-2 in the current year has resulted in additional disclosure on whether the Group is a for-profit or a not-for-profit entity.

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. St Vincent de Paul Society Victora Inc. 11

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

Note 2. REVENUE AND OTHER INCOME (a) Fundraising activities Bequests

3,396,276 4,909,165

2,287,441

3,532,267

Donations

6,698,852 6,159,266

6,627,937

5,662,161

8,915,378

9,194,428

569,785

691,161

10,095,128 11,068,431 (b) Government grants Councils/Conferences/Centres

569,785 691,161

Accommodation & Support Services

12,995,718 10,891,753

Residential Aged Care

14,839,281 13,783,612

29,263,814 26,048,715

569,785

691,161

29,227,711 28,391,229

29,227,711

28,391,229

Disability Employment Services

859,030 682,189

259,959 319,556

259,959

319,556

Sales – Piety

486,403 336,969

486,403

336,969

1,055,474 811,496

29,974,073

29,047,754

Sales – Disability Employment Services

31,029,547 29,859,250 (d) Other revenue Client rent / fees

5,820,465 5,663,373

Accommodation bonds retention

289,270 315,162

Accommodation charge

592,778 467,161

Interest/investment income – other persons

2,567,957 2,536,287

488,674

584,054

Sundry income

3,157,279 2,451,268

1,015,546

498,462

1,504,220

1,082,516

413,986

490,231

12,427,749 11,433,251 (e) Net gain on sale of property, plant and equipment TOTAL REVENUE

413,986 473,501 83,230,224

78,883,148

41,377,442

40,506,090

812,346

(151,804 )

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

12 Do something about it 2012-2013 Financial Report

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

Employee salaries & benefits

9,444,991

8,537,516

8,095,688

7,230,577

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

1,352,543

1,647,719

1,324,576

1,565,094

Depreciation and amortisation

80,303

79,006

Construction costs expensed

1,000

11,154,098

9,425,153

10,795,456

9,213,896

22,032,935

19,689,394

20,215,720

18,009,567

Employee salaries & benefits

605,891

582,047

605,891

582,047

Promotion

213,082

206,919

213,082

206,919

Other

605,162

541,868

605,162

541,868

1,424,135

1,330,834

1,424,135

1,330,834

71,013

98,850

71,013

98,850

139,708

114,171

61,519

83,386

1,883,515

1,401,296

1,953,029

1,401,296

Depreciation & amortisation

298,465

318,932

298,465

318,932

Insurance

165,970

211,881

165,970

211,881

68,685

43,385

68,685

43,385

171,938

157,460

171,938

157,460

Repairs & maintenance

59,606

9,800

59,606

9,800

Telephone

39,344

41,927

39,344

41,927

Training

27,167

90,334

27,167

90,334

6,105

3,969

6,105

3,969

Other â&#x20AC;&#x201C; includes Shared Services costs

228,638

75,879

655,128

297,155

State Council

473,089

342,991

473,089

342,991

3,633,243

2,910,875

4,051,058

3,101,366

1,855,000

1,750,000

750,256

1,855,000

2,500,256

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

Selling & Administration

(b) Fundraising/public relations

Motor vehicle running costs Printing/Postage/Office supplies

Travel & accommodation

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

St Vincent de Paul Society Victora Inc. 13

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

Note 3. OPERATING SURPLUS/(DEFICIT) (cont.) Operating expenses (cont.) (e) People in Need Services Accommodation/Transport

1,062,380

832,344

1,062,380

832,344

Food vouchers

4,820,244

4,533,698

4,820,244

4,533,698

Food purchases

1,338,883

1,313,324

1,338,883

1,313,324

Whitegoods

562,974

514,777

562,974

514,777

Utilities

512,167

405,511

512,167

405,511

Medical

159,789

144,859

159,789

144,859

Education

504,483

460,631

504,483

460,631

Compassionate

13,634

6,650

13,634

6,650

Youth

78,967

77,250

78,967

77,250

Flood relief

450,401

127,727

450,401

127,727

Overseas projects

613,575

569,243

613,575

569,243

Bursary

24,089

33,482

24,089

33,482

Sundry

212,598

118,448

805,298

740,200

10,354,184

9,137,944

10,946,884

9,759,696

909,850

833,167

1,454,042

1,331,232

15,188,473

14,131,473

2,012,869

1,404,212

662,021

355,104

(f) Residential Aged Care Services Catering & Food Depreciation Employee salaries & benefits Occupancy Legal & Audit Motor vehicle running costs

42,007

53,149

Resident amenities

896,611

805,528

Utilities

523,290

519,953

58,570

70,895

1,755,154

1,198,063

23,502,887

20,702,776

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

14 Do something about it 2012-2013 Financial Report

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

1,884,164

2,085,036

671,463

660,422

9,226,293

8,147,015

Occupancy

952,286

244,685

Legal & Audit

368,937

190,067

Motor vehicle running costs

139,127

152,640

239,062

Operating expenses (cont.) (g) Homelessness & Housing Services Client support/Emergency accommodation Depreciation Employee salaries & benefits

Repairs & maintenance Telephone

87,318

261,880

247,286

1,399,164

895,820

14,903,314

12,949,363

214,721

208,467

214,721

208,467

1,329,119

1,151,930

1,329,119

1,151,930

Conference Support – other

300,583

322,261

300,583

322,261

State, National, International Councils

563,112

547,904

563,112

547,904

Conference operating costs

919,326

805,331

919,326

805,331

3,326,861

3,035,893

3,326,861

3,035,893

81,032,559

72,257,334

39,964,658

35,237,356

4,087,440

3,840,705

1,935,289

1,827,799

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

118,658

127,372

64,991

69,618

Construction costs expensed

78,238

13,271

Impairment of trade receivables

26,594

101,116

430

4,151

4,772,943

3,986,975

3,896,335

3,795,926

36,349,163

32,484,291

10,654,608

9,213,920

91,880

91,711

51,975

47,711

45,525,346

40,649,592

16,603,198

14,954,974

413,986

473,501

413,986

490,231

Bad debts written off Rental expense on operating leases – Minimum lease payments Employee salaries & benefits Remuneration of Auditor – Audit

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

St Vincent de Paul Society Victora Inc. 15

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

2,642,930

2,321,524

1,404,998

1,114,567

51,708

55,196

36,068

39,506

Councils & Central Office

1,645,239

1,301,254

1,645,239

1,301,254

SVDP Victoria Endowment Fund

499,032

737,636

Society of St Vincent de Paul (Victoria)

4,876

4,875

VincentCare Victoria

667,214

2,239,594

Councils, Central Office & Conferences

11,873,528

13,795,841

11,873,528

13,795,841

SVDP Victoria Endowment Fund

500,000

VincentCare Victoria

28,440,682

26,901,088

13,554,835

15,136,601

Note 4. KEY MANAGEMENT PERSONNEL compensation The aggregate compensation made to key management personnel of the Group.

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

Term deposits

43,182,279 45,535,484

Note 6. TRADE AND OTHER RECEIVABLES Trade debtors (i)

1,207,948

859,197

388,215

122,316

Allowance for doubtful debts

(165,210 )

(138,616 )

1,042,738 720,581

388,215

122,316

Other debtors

1,278,935

939,098

589,880

587,916

SVDP Victoria Endowment Fund

507,348

382,057

Total Current Receivables

2,321,673 1,659,679

1,485,443

1,092,289

(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. Movement in the allowance for doubtful debts Balance at the beginning of the year

138,616

37,500

Impairment losses recognised on receivables Impairment losses reversed

54,686

107,816

(28,092 )

(6,700 )

Balance at the end of the year

165,210 138,616

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, the Directors believe that there is no further credit provision required in excess of the allowance for doubtful debts.

16 Do something about it 2012-2013 Financial Report

CONSOLIDATED ENTITY

PARENT ENTITY

2013 $

2012 $

2013 $

2012 $

126,333

226,893

106,061

206,552

500,000

4,382,507

1,868,638

4,382,507

2,368,638

5,425,519

2,943,523

3,200

9,808,026

5,312,161

3,200

Current financial assets

5,425,519

2,943,523

3,200

Non-current financial assets

4,382,507

2,368,638

9,808,026

5,312,161

3,200

60,148,438

59,453,286

Country of Incorporation

Percentage Owned

Australia

Society of St Vincent de Paul (Victoria)

Australia

100%

St Vincent de Paul Victoria Endowment Fund

Australia

100%

VincentCare Victoria

Australia

100%

VincentCare Community Housing

Australia

100%

Note 7. INVENTORIES Finished goods

Note 8. OTHER FINANCIAL ASSETS Held-to-maturity investments carried at amortised cost: NON-CURRENT Medium term notes Medium term interest bearing securities

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

Disclosed in the financial statements as:

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

Parent Entity: St Vincent de Paul Society Victoria Inc. Controlled Entities of St Vincent de Paul Society Victoria Inc.

During the financial year: The Society contributed a further $1,200,000 (2012: $2,025,144) to St Vincent de Paul Victoria Endowment Fund; and The Society received interest income of $504,848 (2012: $379,557) from St Vincent de Paul Victoria Endowment Fund. The purpose of the St Vincent de Paul Endowment Fund is to provide a separate entity into which bequests or other funds may be invested over a period of time, with interest earnings flowing back to St Vincent de Paul Society Victoria Inc. or its controlled entities. St Vincent de Paul Society Victora Inc. 17

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

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

239,027 300,641 235,772 297,570

Prepayments

651,372 691,359 464,555 469,689

890,399

992,000

700,327

767,259

Note 11. PROPERTY, PLANT & EQUIPMENT LAND At cost

22,835,496 22,940,496 8,675,732 8,780,732

BUILDINGS At cost

36,572,651 36,676,097 11,074,353 11,177,799

Buildings under construction

667,696 381,449 315,243 225,042

Less accumulated depreciation

(7,954,749 ) (7,069,400 ) (2,761,476 ) (2,533,283 ) 29,285,596 29,988,147 8,628,119 8,869,559

BUILDING IMPROVEMENTS At cost

6,909,008 5,107,871 2,865,307 1,925,763

Less accumulated depreciation

(1,831,504 ) (1,222,687 ) (590,365 ) (340,201 ) 5,077,505 3,885,183 2,274,943 1,585,561

LEASEHOLD IMPROVEMENTS At cost

3,179,385 2,814,238 2,183,663 1,937,751

Less accumulated depreciation

(1,864,513 ) (1,487,758 ) (1,563,103 ) (1,258,597 ) 1,314,872 1,326,480 620,560 679,154

FURNITURE, PLANT & EQUIPMENT At cost

11,621,934 11,489,164 4,689,332 3,964,059

Less accumulated depreciation

(6,778,342 ) (6,580,122 ) (3,090,727 ) (2,426,199 ) 4,843,592 4,909,042 1,598,605 1,537,860

MOTOR VEHICLES At cost

5,304,548 6,076,703 4,339,543 4,663,847

Less accumulated depreciation

(3,257,069 ) (3,634,914 ) (2,494,700 ) (2,695,661 ) 2,047,479 2,441,789 1,844,843 1,968,186

COMPUTER HARDWARE At cost

1,957,819 1,930,821 1,261,684 1,184,395

Less accumulated depreciation

(1,667,558 ) (1,612,918 ) (1,117,168 ) (1,057,734 ) 290,261 317,903 144,516 126,662

ARTWORK & ANTIQUITIES At cost

18 Do something about it 2012-2013 Financial Report

2,980 2,980 2,455 2,455 65,697,781 65,812,020 23,789,773 23,550,169

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

Reconciliations Reconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the current and previous financial years are set out below. Total Land Carrying amount at beginning of financial year

9,115,844 22,940,496 22,975,608 8,780,732

Additions Disposals Carrying amount at end of financial year

- 300,000 - - (105,000 ) (335,112 ) (105,000 ) (335,112 ) 22,835,496 22,940,496 8,675,732 8,780,732

Total Buildings Carrying amount at beginning of financial year Additions Transfer of Capital WIP Reclassifications Disposals Impairment loss recognised in Statement of Comprehensive Income Construction costs expensed Less depreciation Carrying amount at end of financial year

29,988,145 31,511,901 8,869,558 9,113,188 2,619,223 2,706,340 1,168,524 1,139,803 (2,249,187 ) (2,346,208 ) (1,072,773 ) (919,920 ) (5,351 ) - (5,351 ) - (52,058 ) (178,566 ) (52,058 ) (178,566 ) - (750,256 ) - -

(78,238 ) (13,271 ) - - (936,939 ) (941,795 ) (279,782 ) (284,947 ) 29,285,596 29,988,145 8,628,119 8,869,558

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

3,885,185 2,544,750 1,585,562 810,105 515,318 335,502 194,393 191,757 1,319,757 1,396,458 779,090 706,586 (40,335 ) (1,015 ) (40,335 ) (2,640 ) (602,421 ) (390,510 ) (243,768 ) (120,246 ) 5,077,505 3,885,185 2,274,943 1,585,562

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

1,326,480 1,674,520 679,154 952,697 27,240 14,823 27,240 13,473 323,296 55,395 204,062 55,395 (2,453 ) (1,680 ) (2,453 ) (1,680 ) (359,690 ) (416,578 ) (287,442 ) (340,731 ) 1,314,872 1,326,480 620,560 679,154

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

4,909,042 4,796,559 1,537,860 1,686,449 967,216 457,750 576,745 214,427 567,476 884,103 50,963 157,939 (246,176 ) - (24,304 ) - 50,775 11,642 50,775 4,320 (1,404,741 ) (1,241,012 ) (593,434 ) (525,275 ) 4,843,592 4,909,042 1,598,605 1,537,860

St Vincent de Paul Society Victora Inc. 19

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

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

2,441,788 1,979,704 1,968,185 1,322,390

Additions

569,207 1,287,004 561,690 1,224,415

Transfer from Capital WIP

38,657 - 38,657 -

Disposals

Reclassifications

(451,766 )

(326,598 )

(280,180 )

(235,295 )

Less depreciation Carrying amount at end of financial year

(547,773 ) (498,321 ) (440,875 ) (343,324 ) 2,047,479 2,441,788 1,844,843 1,968,185

(2,636 ) - (2,636 ) -

Total Computer Hardware Carrying amount at beginning of financial year

317,903 544,636 126,661 259,188

Additions

202,934 115,503 96,119 80,749

Transfer from Capital WIP

- 10,252 - -

Disposals

Reclassifications

12,534 - 12,534 -

Less depreciation Carrying amount at end of financial year

(235,875 ) (352,488 ) (89,988 ) (213,276 ) 290,261 317,903 144,516 126,661

(7,234 ) - (809 ) -

Total Artwork & Antiquities Carrying amount at beginning and end of financial year

2,980 2,980 2,455 2,455

Total Property, Plant & Equipment Carrying amount at beginning of financial year

65,812,020 66,030,658 23,550,169 23,262,316

Additions

4,901,141 5,216,922 2,624,711 2,864,623

Disposals

Reclassifications

(862,237 )

(840,276 )

(462,352 )

(748,971 )

Transfer from Intangibles

- 8,948 - -

Impairment loss recognised in Statement of Comprehensive Income

- (750,256 ) - -

Construction costs expensed

Less depreciation Carrying amount at end of financial year

(4,087,439 ) (3,840,705 ) (1,935,288 ) (1,827,799 ) 65,697,781 65,812,020 23,789,773 23,550,169

12,534 - 12,534 -

(78,238 )

(13,271 ) - -

An independent valuation of the Groupâ&#x20AC;&#x2122;s land and buildings is performed every three years. The latest valuation was performed in the 2012 financial year by Knight Frank Health & Aged Care Victoria. An impairment loss of $750,256 was recognised in respect of land and buildings. In accordance with the accounting policy in Note 1(g), land and buildings have not been revalued to the current market value.

20 Do something about it 2012-2013 Financial Report

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

Note 12. INTANGIBLES AGED CARE BED LICENCES Aged Care bed licences at deemed cost

8,645,000 10,500,000 - -

COMPUTER SOFTWARE & IT DEVELOPMENT At cost

1,174,235 1,154,050 403,018 363,654

Less accumulated amortisation

(1,088,651 )

(1,007,280 )

(346,368 )

(299,475 )

85,584 146,770 56,650 64,179 Total Intangibles

8,730,584

10,646,770

56,650

64,179

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

- 10,500,000 12,250,000 -

Impairment loss recognised in the Statement of Comprehensive Income

Carrying amount at end of financial year

8,645,000 10,500,000 - -

(1,855,000 )

(1,750,000 ) - -

Total Computer Software & IT Development Carrying amount at beginning of financial year

146,770 277,609 64,179 131,122

Additions

69,996 5,480 69,996 2,675

Reclassifications

(12,534 )

(8,947 )

Less amortisation

(118,648 )

(127,372 )

Carrying amount at end of financial year

85,584 146,770 56,650 64,179

(12,534 ) - (64,991 )

(69,618 )

Total Intangibles Carrying amount at beginning of financial year

10,646,770 12,527,609 64,179 131,122

Additions

69,996 5,480 69,996 2,675

Reclassifications

(12,534 )

Impairment loss recognised in the Statement of Comprehensive Income

(1,855,000 )

Less amortisation

(118,648 )

Carrying amount at end of financial year

8,730,584 10,646,770 56,650 64,179

(8,947 )

(12,534 ) -

(1,750,000 ) - - (127,372 )

(64,991 )

(69,618 )

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 Service. The review led to the recognition of an impairment loss of $1,855,000 (2012: $1,750,000), which has been recognised in the Statement of Comprehensive Income. The recoverable amount of the bed licences has been determined based on an independent valuation performed by Knight Frank Health & Aged Care Victoria. The impairment loss has been included in the line item Impairment Expenses in the Statement of Comprehensive Income.

St Vincent de Paul Society Victora Inc. 21

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

Note 13. TRADE AND OTHER PAYABLES Unsecured: Trade creditors (i)

1,098,686 1,922,399

631,899

1,225,575

Accrued creditors

722,003 865,089

323,476

463,462

Other creditors

1,041,346 738,359

625,886

348,755

VincentCare Victoria

- - 86,469

SVDP Victoria Endowment Fund

- -

1,617,526

GST payable

- 137,530

1,667,730

3,738,857

2,862,035

3,663,377

83,539

(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) 5,386,955 5,111,382

1,416,538

Other provision (ii)

(b) - 7,177

1,211,913

5,386,955

5,118,559

1,416,538

1,211,913

(a)

958,683

806,453

246,593

203,344

1,663,131

1,415,257

NON-CURRENT Employee benefits (a) Aggregate Employee Entitlement Liability

6,345,638 5,917,835

(b) Other provisions Flood damage repairs (ii) Balance at 1 July 2012

7,177 102,638

Reductions arising from payments

Balance at 30 June 2013

- 7,177

(7,177 )

(95,461 )

(i) The current provision of employee benefits includes $4,398,390 (parent entity: $1,416,538) of annual leave and vested long service leave entitlements accrued but not expected to be taken within 12 months (2012: $4,221,817 and $1,211,913 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. The flood damage repairs have been completed in May 2013.

Note 15. OTHER LIABILITIES Unsecured: Refundable accommodation bonds

12,725,544 14,069,912

Grants in advance

2,156,518 2,930,584

Prepaid income

55,221 45,399

96,230

135,317

Deferred Lease Liability

51,385 - 20,748

14,988,668 17,045,895 22 Do something about it 2012-2013 Financial Report

116,978

135,317

Note 16. RESERVES Nature and purpose of reserves as disclosed in the Statement of Changes in Equity: Asset Revaluation Reserve $28,256,034 (2012: $28,256,034) – parent entity $13,235,238 (2012: $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 (2012: $198,036) - parent entity $Nil (2012: $Nil) Represents the capital value of land and building sold. Fund-a-Future Reserve $130,000 (2012: $130,000) – parent entity $Nil (2012: $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 (2012: $6,124,750) – parent entity $1,467,467 (2012: $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 $Nil (2012: $290,468) – parent entity $Nil (2012: $290,468) Represents funds set aside to assist Victorian Flood victims as they return to re-establish their homes and livelihood within their communities. Welfare/Asylum Assistance Reserve $1,024,687 (2012: $Nil) – parent entity $1,024,687 (2012: $Nil) Represents funds set aside for welfare assistance including assistance to asylum seekers. Share Revaluation Reserve $660,542 (2012: $(151,804)) – parent entity $nil (2012: $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: CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

Within one year

50,000

50,083

Later than one year but not later than 5 years

50,000

Later than five years

50,000

100,083

50,000

100,083

Representing Non-cancellable operating lease

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

St Vincent de Paul Society Victora Inc. 23

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

Note 18. CAPITAL AND LEASE COMMITMENTS (a) Lease Commitments Payable Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities payable: Operating Leases Not later than one year

3,386,774

2,970,716

2,946,479

2,798,075

Later than one year but not later than 5 years

6,434,534

6,194,354

5,693,821

5,976,872

842,159

1,055,559

476,541

1,054,862

10,663,467

10,220,629

9,116,841

9,829,809

120,324

36,840

120,324

36,840

120,324

36,840

120,324

36,840

120,324

36,840

120,324

36,840

Later than five years

The property and equipment leases are non cancellable leases spanning various terms with rental paid monthly and quarterly in advance. (b) Capital Commitments Capital expenditure commitments contracted for: Building works and refurbishment projects Payable Not later than one year

24 Do something about it 2012-2013 Financial Report

CONSOLIDATED ENTITY 2013 $

CONSOLIDATED ENTITY 2012 $

PARENT ENTITY 2013 $

PARENT ENTITY 2012 $

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

39,506 51,708 55,196 36,068

Cash deposits with banks

2,816,361 4,283,359 1,645,239 1,301,254

Bank term deposits

40,314,210 41,196,929 11,873,528 13,795,841

Balance per Statement of Cash Flows

43,182,279

45,535,484

13,554,835

15,136,601

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

5,268,734 3,010,011 6,474,009 1,412,784

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

1,897,417 4,206,098 3,968,077 2,000,279

Construction costs expensed

78,238 13,271 - -

Net gain on sale of property, plant and equipment

(237,507 )

Net gain on disposal of shares in listed corporations

(157,871 ) 28,696 - -

Impairment of Aged Care Bed licences

1,855,000 1,750,000 - -

Impairment of properties

- 750,256 - -

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

Bequests received in the form of shares in listed corporations

- (262,678 ) - -

Residents’ accommodation bond retentions

(274,144 )

(307,384 ) - -

Interest deducted from residents’ accommodation bonds

(60,211 )

(165,033 ) - -

Interest payable on refund of residents’ accommodation bonds

5,701 14,676 - -

(473,501 )

(413,986 )

(490,231 )

(812,346 ) 151,804 - -

Changes in assets and liabilities (Increase) in receivables

(550,684 )

(277,735 )

(713,413 )

Decrease/(increase) in inventories

100,560

Decrease/(increase) in prepayments

39,987 (169,496 ) 5,134 (124,531 )

Increase/(decrease) in payables and other liabilities

Increase in provisions

472,011 718,497 268,622 113,607

Cash flows from operations

(10,279 ) 100,491

(85,430 ) (4,965 )

(1,636,542 ) 1,182,629 12,159 551,133 6,038,301

13,385,809

2,672,070

7,125,734

St Vincent de Paul Society Victora Inc. 25

notes to the financial statements (cont.)

FOR THE YEAR ENDED 30 JUNE 2013

Note 20. FINANCIAL INSTRUMENTS 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 2013

2012

Carrying Amount $

Fair Value $

Carrying Amount $

Fair Value $

43,182,279

45,535,484

Trade and other receivables

2,486,883

2,321,673

1,798,295

1,659,679

Other financial assets

9,808,026

5,312,161

55,477,188

55,311,978

52,645,940

52,507,324

2,862,035

3,663,377

12,725,544

14,069,912

15,587,579

17,733,289

13,554,835

15,136,601

1,485,443

710,232

3,200

15,043,478

15,850,033

1,581,261

2,037,792

1,581,261

2,037,792

Consolidated Entity Financial assets Cash

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

26 Do something about it 2012-2013 Financial Report

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 $592,700 (2012: $511,142) of funds raised from the 2012 CEO Sleepout to VincentCare Victoria after deducting expenses incurred; • The Society contributed $nil (2012: $50,000) to VincentCare Victoria’s research project on Trauma & Homelessness in Victoria; • The Society received from VincentCare Victoria $50,000 (2012: $50,000) for the rental of the office premises at Prospect Street, Box Hill; • The Society paid VincentCare Victoria $426,490 (2012: $220,346) for the management of shared services; and • The Society purchased goods totalling $nil (2012: $60,610) from VincentCare Victoria. The amount payable to VincentCare Victoria is $86,469 (2012: $83,539). During the financial year: • The Society contributed a further $1,200,000 (2012: $2,025,144) to the St Vincent de Paul Victoria Endowment Fund for the purpose disclosed in Note 9; and • The Society received investment income of $504,848 (2012: $379,557) from St Vincent de Paul Victoria Endowment Fund. The amount receivable from St Vincent de Paul Victoria Endowment Fund is $507,348 (2012: payable to St Vincent de Paul Endowment Fund $1,617,526).

Note 22. ECONOMIC DEPENDENCY A significant portion of the revenue of the subsidiary, VincentCare Victoria, is provided by the Federal 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 2013 that has significantly affected, or may significantly affect: (a) the consolidated operations in future financial years, or (b) the results of those operations in future financial years, or (c) the consolidated state of affairs in future financial years.

St Vincent de Paul Society Victora Inc. 27

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 27: 1. Presents a true and fair view of the financial position of the St Vincent de Paul Society Victoria Inc. as at 30 June 2013 and its performance for the year ended on that date in accordance with Australian Accounting Standards â&#x20AC;&#x201C; Reduced Disclosure Requirements and the Associations Incorporation Reform Act 2012. 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:

Anthony Tome John Hayes State President Treasurer Dated this 27th day of September 2013

28 Do something about it 2012-2013 Financial Report

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 2013, the statement of profit or loss and other comprehensive income, the statement of cash flows and the statement 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 28.

The State Council’s Responsibility for the Financial Report The State Council is responsible for the preparation fair presentation of the financial report in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Associations Incorporations Reform Act 2012, 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 fairly, in all material respects, the association’s and consolidated entity’s financial position as at 30 June 2013 and their financial performance for the year then ended in accordance with Australian Accounting Standards – Reduced Disclosure Requirements.

DELOITTE TOUCHE TOHMATSU

Alison Brown Partner Chartered Accountants Melbourne, 27 September 2013

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu St Vincent de Paul Society Victora Inc. 29

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 Shops.

Call 1800 621 349

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