2011-2012 Financial Report

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2011-2012 Financial Report

Contents

Consolidated Statements of Comprehensive Income 2

Consolidated Statements of Financial Position 3

Consolidated Statements of Changes in Equity 4

Consolidated Statements of Cash Flows 5

Notes to the Financial Statements 6

Statement by State Council 34

Independent Auditor’s Report 35

St Vincent de Paul Society Victoria Inc. I 1

Consolidated Statements of Comprehensive IncomeFOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

Note 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

ToTal Revenue 78,883,148 71,255,263 40,506,090 36,647,148

Cost of sales

Cost of sales 3(a) (19,689,394 ) (20,033,804 ) (18,009,567 ) (18,361,530 )

GRoss suRplus 59,193,754 51,221,459 22,496,523 18,285,618

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 )

ToTal Funds available FoR ClienT aCTiviTies 54,952,045 47,148,333 18,064,323 14,172,605

Client Services Expenses

People in Need Services 3(e) (9,137,944 ) (9,579,749 ) (9,759,696 ) (9,961,025 )

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 )

Impairment expenses 3(d) (2,500,256 ) (1,750,000 ) - -

surplus for year from continuing operations 6,625,813 2,544,067 5,268,734 1,180,356

OThER COmPREhENSIvE INCOmE/(ExPENSE)

Changes in fair value of financial assets designated as at fair value through Statement of Comprehensive Income 2(f) (151,804 ) 16,163 - -

TOTAL COmPREhENSIvE SuRPLuS FOR YEAR 6,474,009 2,560,230 5,268,734 1,180,356

The accompanying notes form part of these financial statements.

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

Consolidated Statements of Financial PositionAS AT 30 JUNE 2012

CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

Note 2012 $

2011 $

2012 $

2011 $

CuRRENT ASSETS

Cash and cash equivalents 5 45,535,484 35,946,641 15,136,601 9,169,824

Trade and other receivables 6 1,659,679 1,408,648 710,232 681,433

Inventories 7 226,893 216,614 206,552 201,587

Financial assets 8 2,943,523 3,825,483 3,200 2,003,200

Other assets 10 992,000 763,051 767,259 586,097

TOTAL CURRENT ASSETS 51,357,579 42,160,437 16,823,844 12,642,141

NON-CuRRENT ASSETS

Financial assets 8 2,368,638 500,000 - -

Investments in controlled entities 9 - - 59,453,286 57,807,700

Property, plant & equipment 11 65,812,020 66,030,658 23,550,169 23,262,316

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

TOTAL NON-CURRENT ASSETS 78,827,428 79,058,267 83,067,634 81,201,138

ToTal asseTs 130,185,007 121,218,704 99,891,478 93,843,279

CuRRENT LIABILITIES

Trade and other payables 13 3,663,377 3,292,340 3,356,800 2,579,779

Provisions 14 5,118,559 4,576,967 1,211,913 1,153,210

Other liabilities 15 17,045,895 15,643,135 135,317 246,479

TOTAL CURRENT LIABILITIES 25,827,831 23,512,442 4,704,030 3,979,468

NON-CuRRENT LIABILITIES

Provisions 14 806,453 629,548 203,344 148,441

TOTAL NON-CURRENT LIABILITIES 806,453 629,548 203,344 148,441

ToTal liabiliTies 26,634,284 24,141,990 4,907,374 4,127,909

NET ASSETS 103,550,723 97,076,714 94,984,104 89,715,370

EQuITY

Reserves 16 34,847,484 35,127,015 14,993,173 15,120,900

Retained earnings 68,703,239 61,949,699 79,990,931 74,594,470

TOTAL EQuITY 103,550,723 97,076,714 94,984,104 89,715,370



Consolidated Statements of Changes in EquityFOR THE YEAR ENDED 30 JUNE 2012

Reserves (Note 16)

Retained Earnings

$

Asset Revalu-

ation Reserve

$

Capital Profits

Reserve

$

Bequest Reserve

$

Flood Relief

Appeal Reserve

$

Fund-a-Future

Reserve

$

Share Revalu-

ation Reserve

$

Total

$

CONSOLIDATED ENTITY

Balance at 1 July 2010 60,486,777 28,256,034 198,036 5,445,637 - 130,000 - 94,516,484

Surplus for the year 2,544,067 - - - - - - 2,544,067

Other Comprehensive Income 16,163 - - - - - - 16,163

Total Comprehensive surplus 2,560,230 - - - - - - 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 - 97,076,714


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 6,124,750 290,468 130,000 (151,804 ) 103,550,723

PARENT ENTITY

Balance at 1 July 2010 73,832,309 13,235,238 - 1,467,467 - - - 88,535,014



Transfer to Flood Relief Appeal Reserve (418,195 ) - - - 418,195 - - -

balance at 30 June 2011 74,594,470 13,235,238 - 1,467,467 418,195 - - 89,715,370



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



Consolidated Statements of Cash FlowsFOR THE YEAR ENDED 30 JUNE 2012

CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

Note 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 9,142,984 10,384,051 9,142,984

Payments to clients, suppliers and employees (66,559,717 ) (62,409,069 ) (33,016,406 ) (33,089,788 )

Interest received 2,335,973 1,260,919 542,912 477,503

net cash provided by operating activities 19(b) 13,385,809 8,903,073 7,125,734 3,206,947

CASh FLOwS FROm INvESTINg ACTIvITIES:

Proceeds from sale of property, plant and equipment 1,313,774 603,489 1,239,201 549,178

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 (4,813,129 ) (528,761 ) (1,158,957 ) 1,086,257

CASh FLOwS FROm FINANCINg ACTIvITIES:

Proceeds from residents’ accommodation bonds 4,050,730 5,362,039 - -

Repayment of residents’ 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

Cash and cash equivalents at the end of the financial year 19(a) 45,535,484 35,946,641 15,136,601 9,169,824




Notes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2012

NOTE 1. SummARY OF SIgNIFICANT ACCOuNTINg POLICIESThe 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 Principal place of business43 - 45 Prospect Street 43 - 45 Prospect StreetBox Hill VIC 3128 Box Hill VIC 3128Tel: (03) 9895 5800 Tel: (03) 9895 5800

Statement of compliance

The financial report is a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards and Interpretations and the requirements of the Associations Incorporations Act (Vic) 1981 and complies with other requirements of the law.

The financial report covers the consolidated entity being St Vincent de Paul Society Victoria Inc., 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 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.


(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) RevenueRevenue 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:

• theGroupobtainscontrolofthegrantfundsortherighttoreceivethegrantfunds;

• itisprobablethattheeconomicbenefitscomprisinggrantswillflowtotheGroup;and

• theamountofthegrantcanbemeasuredreliably.

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 taxThe 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.


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 equivalentsCash 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 assetsInvestments 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 short-term with a profit making intention. In addition, any other financial assets so designated by management on initial recognition are included in this category. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the statement of comprehensive income in the period in which they arise.

Financial assets at fair value through statement of comprehensive income include shares in listed corporations.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment.

Interest income is recognised by applying the effective interest rate.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at the end of each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.

For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate.

The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in the statement of comprehensive income.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through the statement of comprehensive income to the extent the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

Derecognition of financial assets

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


(f) Assets held in trustThe 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 equipmentLand 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 Group’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Plant and equipment 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 Depreciation rates and methodBuildings 1% to 2.5% straight lineBuilding Improvements 10% straight lineLeasehold improvements Over the term of the leaseFurniture, Plant & Equipment 7% to 20% straight lineComputer Hardware 33% straight lineMotor Vehicles 15% to 20% straight line

Artwork and antiquities are held at cost and not depreciated.

Land is not a depreciable asset.

(i) IntangiblesIntangible 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.




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

Operating lease payments are recognised as an expense in the Statement of Comprehensive Income on a straight-line basis over the lease term.


Finance leases, which transfer to the Group substantially all the risks and benefits included in ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments.

Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset or the lease term.

(p) Employee BenefitsA 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 for-profit 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.




(r) Standards and Interpretations adopted with no effect on financial statementsThe 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 adoptedAt the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

Standard Effective for annual reporting

periods beginning on or after

Expected to be initially applied in the financial

year endingAASB 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)’

1 January 2013 30 June 2014

AASB 10 ‘Consolidated Financial Statements’ 1 January 2013 30 June 2014AASB 11 ‘Joint Arrangements’ 1 January 2013 30 June 2014AASB 12 ‘Disclosure of Interests in Other Entities’ 1 January 2013 30 June 2014AASB 127 ‘Separate Financial Statements’ (2011) 1 January 2013 30 June 2014AASB 128 ‘Investments in Associates and Joint Ventures’ (2011) 1 January 2013 30 June 2014AASB 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’

1 July 2013 30 June 2014

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’

1 July 2012 30 June 2013


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

Expected to be initially applied in the financial

year ending

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

CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 2. REvENuE AND OThER INCOmE

(a) Fundraising activitiesBequests 4,909,165 2,562,485 3,532,267 1,883,372Donations 6,159,266 6,037,290 5,662,161 5,845,163

11,068,431 8,599,775 9,194,428 7,728,535

(b) Government grantsCouncils/Conferences/Centres 691,161 893,448 691,161 893,448Community Services 10,891,753 10,368,954 - -Residential Aged Care 13,783,612 12,374,114 - -Ozanam Enterprises 682,189 692,937 - -

26,048,715 24,329,453 691,161 893,448

(c) Sale of goodsSales – Centres of Charity 28,391,229 26,354,168 28,391,229 26,354,168Sales – Groceries 319,556 231,515 319,556 231,515Sales – Piety 336,969 313,836 336,969 313,836Sales – Ozanam Enterprises 811,496 807,239 - -

29,859,250 27,706,758 29,047,754 26,899,519

(d) Other revenueClient rent / fees 5,663,373 5,518,508 - -Accommodation bonds retention 315,162 328,145 - -Accommodation charge 467,161 342,349 - -Interest received – bank deposits 1,763,196 1,450,343 269,059 198,408Interest received – held-to-maturity investments 341,213 366,880 313,681 264,821Interest received – other persons 222,231 205,816 - -Investment income – shares in listed corporations 209,647 135,638 1,314 65,043Sundry income 2,451,268 2,226,015 498,462 521,001

11,433,251 10,573,694 1,082,516 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 - -


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 3. OPERATINg SuRPLuS/(DEFICIT)

OPERATINg ExPENSES

(a) Cost of sales

Employee salaries & benefits 8,537,516 8,445,476 7,230,577 7,156,654

Cost of goods sold – purchases/materials 1,647,719 2,210,807 1,565,094 2,092,431

Depreciation and amortisation 79,006 72,341 - -

Construction costs expensed - 811 - -

Selling & Administration 9,425,153 9,304,369 9,213,896 9,112,445

19,689,394 20,033,804 18,009,567 18,361,530

(b) Fundraising/public relations

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

(c) Administration

Computer maintenance 98,850 85,169 98,850 85,169

Legal & Audit 114,171 48,427 83,386 43,436


Depreciation & amortisation 318,932 350,956 318,932 350,956

Insurance 211,881 206,720 211,881 206,720

Motor vehicle running costs 43,385 44,236 43,385 44,236

Printing/Postage/Office supplies 157,460 188,993 157,460 188,993

Repairs & maintenance 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

Travel & accommodation 3,969 4,506 3,969 4,506

Other – includes Shared Services costs 75,879 112,672 297,155 157,550

State Council 342,991 276,030 342,991 276,030

2,910,875 2,641,222 3,101,366 2,681,109

(d) Impairment expenses

Impairment of Aged Care bed licences 1,750,000 1,750,000 - -

Impairment of properties 750,256 - - -

2,500,256 1,750,000 - -

(e) People in Need Services

Accommodation/Transport 832,344 878,401 832,344 878,401

Cash 27,494 33,194 27,494 33,194

Food vouchers 4,533,698 4,697,610 4,533,698 4,697,610


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT 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

Compassionate 6,650 14,416 6,650 14,416

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

(f) Residential Aged Care Services

Catering & Food 833,167 780,750 - -

Cleaning 414,719 359,736 - -

Depreciation 1,331,232 1,158,483 - -

Employee salaries & benefits 13,816,417 12,154,602 - -

Occupancy 304,097 160,320 - -

Medical & other supplies 500,746 413,015 - -

Legal & Audit 355,104 220,194 - -

Motor vehicle running costs 53,149 53,446 - -

Repairs & maintenance 643,074 493,806 - -

Resident amenities 304,782 276,843 - -

Telephone 42,322 38,645 - -

Utilities 519,953 497,815 - -

Workcover 315,056 314,320 - -

Interest paid – other persons 70,895 65,980 - -

Other 1,198,063 1,090,204 - -

20,702,776 18,078,159 - -

(g) Homelessness & Housing Services

Cleaning/Waste removal 277,649 283,573 - -

Client support/Emergency accommodation 2,085,036 1,763,508 - -

Depreciation 660,422 585,051 - -

Employee salaries & benefits 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 - -



CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 3. OPERATINg SuRPLuS/(DEFICIT) (CONT.)

(g) Homelessness & Housing Services (cont.)

Telephone 87,318 98,768 - -

Utilities 247,286 237,445 - -

Interest paid – other persons 12 5 - -

Other 618,171 762,770 - -

12,949,363 12,165,134 - -

(h) Support Services

Accounting & payroll support 208,467 202,395 208,467 202,395

Conference Support – employee salaries & benefits 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

(i) Other items

Surplus/(deficit) from operating activities has been determined after:

(i) Expenses

Depreciation of property, plant & equipment 3,840,705 3,605,916 1,827,799 1,828,516

Amortisation of intangibles 127,372 131,413 69,618 92,938

Construction costs expensed 13,271 9,185 - -

Impairment of trade receivables 101,116 4,781 - -

Bad debts written off 4,151 3,885 - -

Rental expense on operating leases

- Minimum lease payments 3,986,975 3,868,229 3,795,926 3,666,982


Remuneration of Auditor

- Audit 91,711 91,293 47,711 28,793

- Contract management review - 19,350 - -

91,711 110,643 47,711 28,793

40,649,592 37,664,387 14,954,974 14,581,399

(ii) Net gain

Net gain on sale of property, plant and equipment 473,501 45,583 490,231 76,373


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT 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

POST-EmPLOYmENT BENEFITS

- Superannuation 175,001 171,791 86,413 85,795

2,321,524 2,246,176 1,114,567 1,112,271

NOTE 5. CASh AND CASh EQuIvALENTS

Cash on hand 55,196 54,463 39,506 38,823

Cash deposits with banks

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) 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 500,000 500,000 - -

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

NOTE 6. TRADE AND OThER RECEIvABLES

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

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

Included in the Group’s trade receivable balance are debtors with a carrying amount of $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).



CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 6. TRADE AND OThER RECEIvABLES (CONT.)

Ageing of past due debtors

61 - 90 days 26,593 11,832 156 1,889

Over 90 days 188,086 27,200 20,825 -

214,679 39,032 20,981 1,889

Movement in the allowance for doubtful debts

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 - -

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. INvENTORIESFinished goods 226,893 216,614 206,552 201,587

NOTE 8. OThER FINANCIAL ASSETSHeld-to-maturity investments carried at amortised cost:

CuRRENT

Medium term notes - 2,000,000 - 2,000,000

NON-CuRRENT

Medium term notes 500,000 500,000 - -

Medium term interest bearing securities 1,868,638 - - -

2,368,638 500,000 - -

Financial assets carried at fair value through Statement of Comprehensive Income:

CuRRENT

Shares in listed corporations 2,943,523 1,825,483 3,200 3,200

5,312,161 4,325,483 3,200 2,003,200

Disclosed in the financial statements as:

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


Consolidated Entity 2012

Consolidated Entity 2011

Parent Entity 2012

Parent Entity 2011

maturity Date units $ units $ units $ units $

mEDIum TERm NOTES

Floating rate note Macquarie (i) 31 May 2012 - - 2,000,000 2,000,000 - - 2,000,000 2,000,000

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 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

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 9. INvESTmENTS IN CONTROLLED ENTITIES

NON CuRRENT

Investments in controlled entities - - 59,453,286 57,807,700

Country of Incorporation

Percentage Owned

PARENT ENTITY:

St Vincent de Paul Society Victoria Inc. Australia - -

CONTROLLED ENTITIES OF ST vINCENT DE PAuL SOCIETY vICTORIA INC.

VincentCare Victoria Australia 100% 100%

Society of St Vincent de Paul (Victoria) Australia 100% 100%

St Vincent de Paul Victoria Endowment Fund Australia 100% 100%

VincentCare Community Housing Australia 100% 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.



CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 10. OThER ASSETS – CuRRENTGST recoveries 300,641 241,188 297,570 240,939

Prepayments 691,359 521,863 469,689 345,158

992,000 763,051 767,259 586,097

NOTE 11. PROPERTY, PLANT & EQuIPmENT

LAND

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

BuILDINgS

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 ) (6,172,447 ) (2,533,283 ) (2,293,178 )

29,988,146 31,511,901 8,869,559 9,113,188

BuILDINg ImPROvEmENTS

At cost 5,107,871 3,377,688 1,925,763 1,030,059

Less accumulated depreciation (1,222,687 ) (832,938 ) (340,201 ) (219,954 )

3,885,184 2,544,750 1,585,562 810,105

LEASEhOLD ImPROvEmENTS

At cost 2,814,238 2,745,701 1,937,751 1,870,564

Less accumulated depreciation (1,487,758 ) (1,071,181 ) (1,258,597 ) (917,867 )

1,326,480 1,674,520 679,154 952,697

FuRNITuRE, PLANT & EQuIPmENT

At cost 11,489,164 10,134,374 3,964,059 3,587,373


4,909,042 4,796,559 1,537,860 1,686,449

mOTOR vEhICLES

At cost 6,076,703 5,380,886 4,663,847 3,857,102


2,441,789 1,979,704 1,968,186 1,322,390

COmPuTER hARDwARE

At cost 1,930,821 1,805,067 1,184,395 1,103,646

Less accumulated depreciation (1,612,918 ) (1,260,431 ) (1,057,734 ) (844,458 )

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

ARTwORK & ANTIQuITIES

At cost 2,980 2,980 2,455 2,455

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

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.


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT 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 - 242,002

Carrying amount at end of financial year 22,940,496 22,975,608 8,780,732 9,115,844

TOTAL BuILDINgS


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 )


TOTAL BuILDINg ImPROvEmENTS

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 ) - (15,822 )


Carrying amount at end of financial year 3,885,185 2,544,750 1,585,562 810,105

TOTAL LEASEhOLD ImPROvEmENTS

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 ) - (1,680 ) -


Carrying amount at end of financial year 1,326,480 1,674,520 679,154 952,697

TOTAL FuRNITuRE, PLANT & EQuIPmENT


Additions 457,750 1,293,913 214,427 266,271

Transfer from Capital WIP 884,103 252,019 157,939 -

Disposals - (283 ) - (283 )

Reclassifications 11,642 (36,138 ) 4,320 -

Less depreciation (1,241,012 ) (1,088,429 ) (525,275 ) (502,276 )





CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 11. PROPERTY, PLANT & EQuIPmENT (CONT.)

TOTAL mOTOR vEhICLES


Additions 1,287,004 681,374 1,224,415 553,687

Disposals (326,598 ) (401,967 ) (235,295 ) (316,870 )



TOTAL COmPuTER hARDwARE

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 - -


Carrying amount at end of financial year 317,903 544,636 126,661 259,188

TOTAL ARTwORK & ANTIQuITIES

Carrying amount at beginning and end of financial year 2,980 2,980 2,455 2,455

TOTAL PROPERTY, PLANT & EQuIPmENT


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 )


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.


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 12. INTANgIBLES

AgED CARE BED LICENCES

Aged Care bed licences at cost 10,500,000 12,250,000 - -

COmPuTER SOFTwARE & IT DEvELOPmENT

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

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

ReconciliationsReconciliations 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 ) (1,750,000 ) - -

Carrying amount at end of financial year 10,500,000 12,250,000 - -

TOTAL COmPuTER SOFTwARE & IT DEvELOPmENT

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

TOTAL INTANgIBLES

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 ) (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

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 Group’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.



CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 13. TRADE AND OThER PAYABLES

Unsecured:

Trade creditors (i) 1,922,399 1,355,163 1,225,575 893,512

Accrued creditors 865,089 990,272 463,462 238,963

Other creditors 738,359 851,153 348,755 326,560

Amount payable to VincentCare Victoria - - 83,539 -

Amount payable to SVDP Victoria Endowment Fund - - 1,235,469 1,120,744

GST payable 137,530 95,752 - -

3,663,377 3,292,340 3,356,800 2,579,779

(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. PROvISIONSCuRRENT

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

NON-CuRRENT

Employee benefits (a) 806,453 629,548 203,344 148,441

(a) Aggregate Employee Entitlement Liability 5,917,835 5,103,877 1,415,257 1,301,651

(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.


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

NOTE 15. OThER LIABILITIESUnsecured:

Refundable accommodation bonds 14,069,912 13,493,420 - -

Grants in advance 2,930,584 2,040,307 - -

Prepaid income 45,399 109,408 135,317 246,479

17,045,895 15,643,135 135,317 246,479

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 83 83 50,083 50,083

Later than one year but not later than 5 years - - 50,000 100,000

Later than five years - - - -

83 83 100,083 150,083

REPRESENTINg

Non-cancellable operating lease 83 83 100,083 150,083

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


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

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 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

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 - 36,840 -

36,840 - 36,840 -

Payable

Not later than one year 36,840 - 36,840 -


CONSOLIDATED ENTITY

CONSOLIDATED ENTITY

PARENT ENTITY

PARENT ENTITY

2012 $

2011 $

2012 $

2011 $

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 54,463 39,506 38,823

Cash deposits with banks 4,283,359 4,405,075 1,301,254 1,011,871

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

(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

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

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 )

Net (gain)/loss on disposal of shares in listed corporations 28,696 (51,875 ) - (42,530 )

Impairment of Aged Care Bed licences 1,750,000 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 151,804 (16,163 ) - -

Bequests received in the form of shares in listed corporations (262,678 ) (289,884 ) - (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 - -

Changes in assets and liabilities

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



NOTE 20. FINANCIAL INSTRumENTS

(a) Financial risk managementThe 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).


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 riskThe 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.



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: Non Interest bearing

Total carrying amount as per

the statement of financial position

1 year or less Over 1 to 5 years

2012 2011 2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

(I) FINANCIAL ASSETS

Cash

SVDP Inc. 4.34% 4.52% 2,513,327 3,336,616 11,282,514 4,782,514 - - 1,340,760 1,050,694 15,136,601 9,169,824

VincentCare Victoria 4.08% 5.24% - - 29,134,225 24,181,638 - - 22,147 21,207 29,156,372 24,202,845

SVDP VIC Endowment Fund 4.63% 5.21% 726,206 2,057,602 511,430 511,496 - - - - 1,237,636 2,569,098

Society of SVDP (Victoria) - - - - - - - - 4,875 4,874 4,875 4,874

Trade and Other Receivables

SVDP Inc. 710,232 681,433 710,232 681,433

VincentCare Victoria 1,009,474 784,377 1,009,474 784,377

SVDP VIC Endowment Fund 78,589 38,471 78,589 38,471

Other Financial Assets

SVDP Inc. 0.00% 5.36% - 2,000,000 - - - - 3,200 3,200 3,200 2,003,200

VincentCare Victoria - - - - - - - - - - - -

SVDP VIC Endowment Fund 2.54% 1.28% 2,368,638 500,000 - - - - 2,940,323 1,822,283 5,308,961 2,322,283

Total Financial Assets 5,608,171 7,894,218 40,928,169 29,475,648 - - 6,109,600 4,406,539 52,645,940 41,776,405

(II) FINANCIAL LIABILITIES

Trade and Other Payables

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

SVDP VIC Endowment Fund 100 100 100 100

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.


(c) Liquidity RiskThe following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows.

weighted average interest rate

%

Less than 1 year $

1-5 years $

5+ years $

CONSOLIDATED ENTITY

2012

Non-interest bearing - 17,733,289 - -

2011


PARENT ENTITY

2012


2011


The following tables detail the Group’s remaining contractual maturity for its non-derivative financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets except where the Group anticipates that the cash flow will occur in a different period.

weighted average interest rate

%

Less than 1 year $

1-5 years $

5+ years $

CONSOLIDATED ENTITY

2012


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 -

2011


Variable interest rate instruments 4.94% 7,507,794 627,692 -


39,716,167 627,692 -

PARENT ENTITY

2012


Variable interest rate instruments 3.25% 2,513,327 - -


16,038,742 - -

2011


Variable interest rate instruments 4.83% 5,444,376 - -


11,942,767 - -



NOTE 20. FINANCIAL INSTRumENTS (CONT.)

(d) Fair valuesThe 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 Group’s financial assets and financial liabilities are disclosed in the Statement of Financial Position and in the notes to the financial statements.

Aggregate fair values and carrying amounts of the Group’s financial assets and financial liabilities at reporting date

2012 2011

Carrying Amount $

Fair value $

Carrying Amount $

Fair value $

CONSOLIDATED ENTITY

Financial assets

Cash 45,535,484 45,535,484 35,946,641 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 5,312,161 4,325,483 4,278,943

52,645,940 52,507,324 41,718,272 41,634,232

Financial liabilities

Trade and other payables 3,663,377 3,663,377 3,292,340 3,292,340

Refundable accommodation bonds 14,069,912 14,069,912 13,493,420 13,493,420

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

PARENT ENTITY

Financial assets

Cash 15,136,601 15,136,601 9,169,824 9,169,824

Trade and other receivables 710,232 710,232 681,433 681,433

Other financial assets 3,200 3,200 2,003,200 1,953,160

15,850,033 15,850,033 11,854,457 11,804,417

Financial liabilities

Trade and other payables 2,037,792 2,037,792 1,459,035 1,459,035

2,037,792 2,037,792 1,459,035 1,459,035


NOTE 21. RELATED PARTY DISCLOSuRESTransactions 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.


• TheSocietycontributed$511,142(2011:$330,000)offundsraisedfromthe2011CEOSleepouttoVincentCareVictoria after deducting expenses incurred;

• TheSocietycontributed$50,000toVincentCareVictoria’sresearchprojectonTrauma&HomelessnessinVictoria;

• TheSocietyreceivedfromVincentCareVictoria$50,000(2011:$50,000)fortherentaloftheofficepremisesatProspectStreet,Box Hill;

• TheSocietypaidVincentCareVictoria$220,346(2011:$44,958)forthemanagementofsharedservices;and

• TheSocietypurchasedgoodstotalling$60,610(2011:$51,276)fromVincentCareVictoria.

The amount payable to VincentCare Victoria is $83,539 (2011: receivable from VincentCare $58,133).


• TheSocietycontributedafurther$2,025,144(2011:$1,391,446)totheStVincentdePaulVictoriaEndowmentFund for the purpose disclosed in Note 9; and

• TheSocietyreceivedinvestmentincomeof$379,557(2011:$263,664)fromStVincentdePaulVictoriaEndowmentFund.

The net amount payable to St Vincent de Paul Victoria Endowment Fund is $1,235,469 (2011: $1,120,744).

NOTE 22. ECONOmIC DEPENDENCYA 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 AuDITORSThe 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 EvENTSNo 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.



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 John Hayes State President Treasurer

Dated this 28th day of September 2012

St vincent de Paul Society victoria Inc.ABN: 28 911 702 061

RN: A0042727Y

43 Prospect Street, Box Hill Vic 3128Locked Bag 4800, Box Hill Vic 3128

Telephone: (03) 9895 5800Facsimile: (03) 9895 5850

Email: [email protected]: www.vinnies.org.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 ResponsibilityOur 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.

OpinionIn 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 BrownPartnerChartered Accountants

Melbourne, 28 September 2012


Deloitte Touche TohmatsuABN 74 490 121 060

550 Bourke StreetMelbourne VIC 3000

GPO Box 78Melbourne VIC 3001 Australia

Tel: +61 (0) 3 9671 7000Fax: +61 (03) 9671 7001

www.deloitte.com.au

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

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How you can helpYou 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 Society’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.Locked Bag 4800, Box Hill Vic 312843 Prospect Street, Box Hill Vic 3128

Phone: 03 9895 5800 Fax: 03 9895 5850Email: [email protected]: 28 911 702 061 RN: A0042727Y

VincentCare VictoriaLocked Bag 4700, Box Hill Vic 312843 Prospect Street, Box Hill Vic 3128

Phone: 03 9895 5900 Fax: 03 9895 5950Email: [email protected]: 53 094 807 280ACN: 094 807 280

www.vinnies.org.au www.vincentcare.org.au

Documents

2011-2012 Financial Report