2013 ECMS Annual Report

Early Childhood Management Services

Annual Report 2013

Our vision

A community where every child has the opportunity to be their best and where every parent,

family and community is enriched by the experience

of their child’s learning.

Our mission

To create opportunities for children, parents and communities to discover and realise

their potential.


Annual Report 2013

Contents

06 ECMS Service Reach

08 A message from Bernie Nott, our CEO

10 A message from Joanne Murray, our Board Chair

12 Highlights of 2013

14 Strategic Goals for 2011-2015

16 Delivering our goals in 2013

28 Our Board

30 Treasurer’s Report

31 Financial Statements

32 Auditor’s Report

34 Acknowledgements

Melbourne

MalvernEast

Cheltenham

Black Rock

Chelsea

Ivanhoe

CoburgNorth

Macleod

Bundoora

Epping

BacchusMarsh

Werribee

HoppersCrossing

Point Cook

Williamstown

NewportGardens

Laverton North

CarolineSprings

Melton

MeltonWest

Keilor East

MelbourneAirport

SunshineNorth

DiamondCreek

Eltham

Templestowe

HawthornEast

Toorak

Burwood

Blackburn

VermontSouth

BalwynNorth

Bentleigh

ClaytonSouth

4245 children enrolled in our kindergarten programs

50 kindergartens

518 children enrolled in our family day care services

1,001 children enrolled in our long day care services

10 long day care centres

485 educators in full-time, part-time and casual roles

20 municipalities across Melbourne delivering an ECMS service

ECMS service reachThese are the current locations and types of services that we provide in the Metropolitan Melbourne and surrounding areas.

ECMS SErviCE TypES

Kindergarten

Family day care

Long day care

3+ Activity Programs

Integrated early years hubN

8 9Early Childhood Management Services ANNUAL REPORT 2013

A message from Bernie Nott, our CEO

‘The best way to predict your future is to create it.’ Abraham Lincoln

Since Lincoln’s time many have espoused the virtues of creating the future you imagine, of having a vision and striving to achieve that vision. Every day our work at ECMS is shaped by our vision: a community where every child has the opportunity to be their best and every parent, family and community is enriched by the experience of their child’s learning.

A message from Bernie Nott, our CEO

In 2013, we continued our work in pursuit of that vision and I encourage you to explore the future that we imagine through the stories of our work and results for the year.

Delivering the services of the future–joined up and seamless

We began 2013 welcoming new services into our network, extending our reach to almost 6,000 children and families. We delivered on the universal access goal of providing access to 15 hours per week of early education for each four-year-old child in the year prior to primary school. We were also delighted to extend access to an early learning program for more three-year-old children than ever before. The first three years of a child’s life present a profound opportunity to positively influence their future as their brain develops. At the same time we know that providing early access to quality programs presents the best opportunity to turn the curve if children are at risk.

The needs of today’s families are complex. Services of the future need to be joined up and provide ease of transition through early learning to primary education. We were proud to partner with Wyndham City Council and the Department of Education and Early Childhood Development to launch two flagship integrated ‘kinder-on-school’ sites in Tarneit and Point Cook. Over 300 children and their families have now commenced that journey and are enjoying the benefits that integrating services can bring.

Shaping the early learning programs of the future – quality matters

The first five years of a child’s life are key to shaping a positive future. Investing in these years is the most important investment any government can make. While the systems of education and care that we have inherited today are not perfect, one thing we know for sure is that quality matters.

During 2013, ECMS remained focused on those aspects needed to raise the quality of our services; professionally qualified staff working as part of an inclusive learning team, improved staff to child ratios, early learning frameworks and quality standards that focus our attentions on what matters most–high quality interactions with children in stimulating environments.

We know that those most vulnerable and at-risk in our community will benefit most from access to quality early learning. ECMS was proud to join a consortia of leading community service agencies to establish the Cradle to Kinder program in Melbourne’s west – a program of intensive wrap around services for highly at-risk young mothers that provides access to quality early learning for their children.

Our experiences of the National Quality Standards and the results of our ratings and assessments in 2013 were overwhelmingly positive, affirming the strengths of our services and focusing our attentions on areas for continuous improvement. Feedback from our parents also highlighted that quality matters, and informs their decisions about their child’s early learning, enabling their own workforce participation. The focus on quality was affirmed by the Council of Australian Governments (COAG) Reform Council’s Report on Education in Australia in 2013, highlighting that children who have accessed early learning programs have performed better in tests of reading, maths and science.

Advocating passionately for the future we imagine

As 2013 came to a close we were invited by our new Federal Government to have a hand in shaping the future of early childhood education and care in Australia. Our submission to the Productivity Commission Inquiry lays out a vision for the future and in 2014 we will advocate passionately for a continued focus on quality and increased investment in our vision: a community where every child has the opportunity to be their best.

As I look to the future, I see some important challenges before us. These include further developing quality accessible, affordable and inclusive early learning services that all children and families need and deserve. It also entails growing our professional and valued workforce.


I am delighted to present our 2013 Annual Report. This year’s report highlights the results we have achieved and the progress we are making towards realising our vision: for a community where every child has the opportunity to be their best and where every parent, family and community is enriched by the experience of their child’s learning.

This year we share the stories and experiences of some of our ECMS families and staff. These stories bring to life the positive impact we are having on the lives of the families and communities with whom we work and demonstrate how we are living out the ECMS vision, mission and values. Thank you to Manix’s, Jasmine’s and Mikael’s families and to Naomi for allowing us to share your stories in this report.

ECMS continued to grow its reach during 2013, with close to 6,000 children now accessing our early learning programs each week. We were particularly pleased to have launched the innovative ‘kinder-on-school’ service, along with the transition of additional kindergartens and family day care services to ECMS. We have also strengthened the work we do in partnership with other organisations in our sector. We have partnered with the Autism Teaching Institute, Drummond Street Services, and the Cradle to Kinder Consortia to progress our goal of enriching, empowering and involving families and communities in their children’s early education.

A message from Joanne Murray, our Board Chair

A message from Joanna Murray, our Board Chair

We continue to maintain an unwavering focus on delivering quality family-centred services. Our assessments against the National Quality Standards support the impact that our focus on quality has, with over 90 per cent of the services assessed in 2013 rated as ‘meeting’ standards. Beyond this, 40 per cent of these services were rated as ‘exceeding’ assessment standards, a result we are very proud of.

The Board was extremely pleased to see our commitment to investment in the future of ECMS and the sector come to fruition in 2013, through the establishment of our first initiatives, under our Surplus Reinvestment Policy. You can read more about this project on page 26 of this Annual Report.

In the coming year the Board will focus on shaping the strategic plans for the next five years of the ECMS journey. In doing this, we will grapple with the many challenging questions around the role that ECMS can play in extending inclusiveness and access to quality early childhood education. We will look at how we can develop innovative strategies and partnerships that lead to improved outcomes for children and families, whilst continuing to deliver high quality and sustainable services for families.

The Board is in no doubt that the key to both our future impact and the results we have achieved thus far lies with the 550 passionate and dedicated people who are members of our ECMS team, and we thank every member of the team for their contribution to the children, families and communities with whom we work. The Board would also like to thank our CEO Bernie Nott and his executive team for their inspired leadership, dedication and focus, which enables our people, communities, families and service delivery partners to grow, discover and flourish.

We look forward to an exciting and impactful year in 2014.


January

Universal access is implemented in 94% of ECMS services for the first time. 2,774 children commence four-year-old kindergarten receiving 15 hours of early learning per week in the year before primary school. All services on track to implement 15 hour programs by 2014.

February

ECMS opens doors to 138 children and their families at Tarneit Central Kindergarten–a flagship project to integrate early learning programs with the primary years at Tarneit P-9 College.

March

ECMS extends its reach, welcoming six new kindergartens into its network and establishing family day care services in Melbourne’s north.

Highlights of 2013

April

ECMS joins consortia of leading community service agencies to provide Cradle to Kinder program – a ‘joined-up’ service response for vulnerable young mothers and their children in Melbourne’s west.

May

ECMS joins with the Australian Institute of Family Studies to present findings of research into overcoming the barriers to accessing early learning, drawing on the experiences of families engaged in ECMS services.

June

ECMS announced as the successful tenderer for the establishment of the Newport Gardens Integrated Early Years Hub to open in 2014.

July

Almost 400 parents explore Understanding Children’s Behaviour in a series of free information sessions delivered by Early Life Foundations.

August

ECMS hosts over 700 educators and sector peers at its Beyond Tomorrow early childhood education conference. The ECMS team celebrates the presentation of leadership awards to five educators who have inspired their peers with examples of innovation, inclusion and quality.

September

ECMS announces $350k investment in upgrades to outdoor learning environments, with a focus on creating natural environments for children that promote exploration, discovery and sustainability.

October

Premier Denis Napthine officially opens Alamanda Early Years Centre at Point Cook - a flagship service integrating early learning programs with the primary years at Alamanda K-9 College.

November

ECMS announces establishment of Quality, Research and Service Improvement Unit to lead the provision of quality and inclusive early learning programs, provide access to specialist services and to advocate for the future.

December

The ECMS team positively reflects and celebrates a year of achievement that saw the National Quality Standards embedded in all services – 93% of services assessed recognised as ‘meeting’ or ‘exceeding’ national standards.

Highlights of 2013

Strategic Goals for 2011–2015

01 Leadership

To provide leadership in shaping the future

1.1 Partner with government in planning for increased access and participation in early childhood education

1.2 Extend and grow services in response to community needs

1.3 Advocate for policy and service development for and on behalf of children and families

1.4 Forge partnerships that extend and compliment outcomes for parents and communities

How will we know if we are successful?

• We are recognised as a leader and champion of early childhood education

• Parents and community partners see an organisation that listens, responds and speaks up

• We are a valued and trusted partner contributing to well-planned services

02 Inclusion

To provide inclusive services that enrich lives and build community

2.1 Provide opportunities for parent leadership and inclusion in our services

2.2 Strengthen our early intervention and ability to respond to children and families with complex needs

2.3 Provide access to resources and information to affirm and support parents in their role


• Parents feel enriched and empowered as a result of their involvement in their child’s early education

• The community sees a service that is inclusive and responsive to need

• Parents have a sense of belonging and inclusion and they feel connected to the community

03 Quality and Responsiveness

To deliver quality family-centred services responding to community needs

3.1 Provide quality, safe and family-centred early childhood education and care

3.2 Lead services and communities in embedding the national early childhood reforms

3.3 Listen to feedback, trial new ideas and take up opportunities to innovate and integrate services

3.4 Draw on our service wisdom and practice to inform policy, service development and continuous improvement

3.5 Forge partnerships that enhance outcomes for children and families


• Children in our services are safe and they are learning in an environment that encourages joy and curiosity, which optimises their development

• Parents and communities see services that are continually evolving and striving for improvement

05 Resources and sustainability

To optimise the sustainable use of the resources we are entrusted with

5.1 Work with local communities to optimise the sustainable use of community assets

5.2 Establish trustworthy and efficient business processes and systems

5.3 Be accountable and transparent in management of the resources we are entrusted with


• We are a trusted partner and service provider with an eye to tomorrow

04 People and team

To build a committed, professional team in an inclusive learning culture

4.1 Attract, develop and retain an engaged and committed team of professional educators and carers

4.2 Develop a community of leaders empowered to respond to local needs

4.3 Ensure the optimal use of our human resources to maximise outcomes for children, families and communities

4.4 Foster an inclusive culture of learning and continuous improvement


• We are an employer of choice where people are engaged and continually learning

• Our educators and carers are recognised and affirmed as leaders in their communities

Delivering our goals in 2013 The following case studies demonstrate how we have achieved our Strategic Goals in 2013.

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Becoming a young mum can be a daunting prospect. Often isolated from family, frightened and financially unequipped, young mums have a number of challenges to face. However, with the assistance of the Cradle to Kinder program, vulnerable young mums need not face these challenges alone.

Cradle to Kinder supports at-risk young mums below the age of 24, from 26 weeks of pregnancy until their child reaches kindergarten age. The program offers intensive case management and holistic support to assist with all aspects of the pregnancy, birth, maternal and child health and entry into early education and care.

Team Leader of the Cradle to Kinder program, Mary Flory, from Melbourne City Mission explains, ‘Most of our mums’ have complex problems such as mental health issues, suffer domestic violence, drug and alcohol issues, social isolation and homelessness.’

‘Our program and program partners seek to support and empower our mums’ to connect with services and provide the necessary structures to enable them to live independently and confidently.’

‘We provide support during pregnancy, post-natal parenting education, advice in the early months with feeding, sleeping and developing routines, socialisation, early learning and in strengthening the relationship between families and the child.’

‘The way ECMS sits across all aspects of case management is really beneficial to our mums’. It has facilitated vital access to quality early learning programs to our mums’ who need it the most, and we know that this produces good outcomes for everyone,’ Mary says.

ECMS joined the Cradle to Kinder partnership consortia in April 2013 in the Western Region. Covering the local government areas of Maribyrnong, Hobsons Bay, Moonee Valley and Melbourne. The consortia comprises of Melbourne City Mission, Kildonan Uniting Care, ISIS Primary Care and Victorian Aboriginal Child Care Agency.

The key feature of our successful tender to deliver the program was the ability to provide an intentional pathway for the children of young mums into early learning programs provided by ECMS.

ECMS Social Inclusion Coordinator, Kathryn Rawlings says, ‘As a truly connected, multidisciplinary team, our consortia partners collectively support and offer assistance to mums whilst they juggle the demands of money, home and their baby. We are proud to be engaged as a trusted partner, enabling young mums access to childcare and kindergarten to help them to study or participate in work.

‘We work across the partnership to formalise the protocols and arrangements to facilitate successful transitions into our early learning programs. This includes everything from individual transition plans to training for our educators and carers.

‘One of the key elements of the program logic is the contribution of our service leaders case planning with our partners. This will provide a valuable means for the team to share information and monitor progress of both mother and child. We also work closely with our staff to develop and equip them with the necessary skills to handle the complex needs of our mums’.

Providing leadership in shaping the future

2 flagship kindergarten school sites services established

6% increase in kindergarten enrolments on 2012

3% increase in average child care utilisation on 2012

Real stories - Mikael’s story

Fifteen-month-old Mikael is thriving at ECMS’s Mossfiel Children’s Centre. He attends long day care twice a week, which enables his young mum, Taylor to attend school to study her Victorian Certificate of Applied Learning (VCAL). She says that his transition into the program has been very smooth and that he loves coming to Mossfiel.

‘It makes me happy to see him settled and I can go school knowing he is in a great environment’, Taylor says.

ECMS Social Inclusion Coordinator, Kathryn Rawlings concludes, ‘Mikael embodies the very essence of the program; improving outcomes for children by supporting and empowering their families.

His participation in an early learning environment will have such a positive influence–his quality experiences and meaningful interactions will directly impact on his development. Secure attachment and positive experiences and relationships help the brain to develop in healthy ways and this lays the foundation for learning and development throughout a child’s life into adulthood.’

Providing leadership

Cradle to kinder program

21Early Childhood Management Services ANNUAL REPORT 2013

Real stories - Manix’s story

Manix is as inquisitive and adventurous as any little five year old boy – his laughter infectious, his energy abundant, just as you would expect a little boy to be.

You wouldn’t know it to look at him, but Manix’s brain learns differently to most other children his age. At three years old, he was diagnosed with autism.

His mother Mei explains, ‘Manix’s memory and learning capacity is just incredible–he craves knowledge. We knew that kindergarten was going to be the perfect opportunity for him to explore, develop, play and socialise, we just wanted to provide him with that opportunity as any parent would’.

For Manix’s parents Rob and Mei, navigating their son’s early education journey was complicated.

‘Because of Manix’s autism he had significant difficulties settling into the four-year-old program at his former kindergarten,’ Mei says. ‘He had severe separation anxiety, which required a range of strategies to handle effectively.

‘A specialist support service, the Elwyn Morey Centre, were great in providing us with approaches which worked well for Manix, we just didn’t feel supported by our former kindergarten to implement them.’

‘We were frustrated by the lack of assistance and willingness of the kindergarten to offer an inclusive program, even more so when we tried to access eligible Kindergarten Inclusion Support (KIS) funding to give him every opportunity in the program’, Manix’s father Rob says.

‘After months of anxiety, and an unsuccessful funding application, we contacted Glen Eira Council, who referred us to ECMS’s Caulfield Primary Early Childhood Centre.

‘Because we’d had such a negative experience, we weren’t really sure what to expect. Although from the moment we met Karin Port and the education team at the centre we felt an enormous sense of relief. We knew that their approach was special and encompassed many of our family’s requirements’.

Lead Educator at Caulfield Primary Early Childhood Centre Karin Port explains, ‘Our role as educators is to enable all children, with assistance and support, to attend kindergarten.

‘Manix’s needs require ongoing, consistent and committed support. The first thing we focused on was implementing a transition plan to assist Manix to settle into his new kindergarten. Its emphasis was learning about his interests and strengths and building a sense of trust with Manix and his family.

‘ECMS were committed to put support systems in place prior to Manix’s commencement. This included providing the funds necessary to employ an additional co-educator to work with all the children in the group. We also completed an appeal application for KIS funding.

‘With a successful funding application, the pre-school was able to maintain the dedicated co-educator assisting the whole group whilst Manix was attending the program. We also were able to focus on the strategies set out by the ECMS team, facilitating his learning via an integrated approach.

Karin delights, ‘What a shame that Manix’s former kindergarten have missed out on all that he has to offer! He is such a great contributor to our program and is greatly valued by the educators and his peers. He has taught me so much and together we have shared such positive learning outcomes.’

‘We’ve been overwhelmed by the amount of effort and help that the whole team has given our family,’ Rob says. ‘Each of the educators has helped expand Manix’s world and built his confidence which has facilitated a smoother transition into school.

‘We appreciate all the people involved with Manix’s early learning journey and are thankful for the educated staff, their positive attitudes and the supports they have in place for both the educators and the children.’

To view Manix’s Journey visit www.ecms.org.au/manix

Providing inclusive services

Supporting children of all abilities

Providing inclusive services that enrich lives and build community

96.4% of parent survey respondents feel ECMS values them as the primary care-giver

95% of families believe ECMS services are responsive to children with complex/additional needs

94% of families who attended ECMS parent information sessions feel more confident about understanding and managing their child/children’s behaviour following the session

providing inclusive services

Real stories - Jasmine’s story

Wyndham has experienced the largest and fastest growth of all Victorian local government areas and is the third fastest growing area in Australia. In response to increasing community needs for early childhood education, ECMS partnered with Wyndham City Council to deliver two flagship services, kindergartens co-located on school sites.

In January 2013, the doors to the $3.2 million Tarneit Central Kindergarten on the site of the Tarneit P-9 College were opened. The philosophy behind the collaboration is to provide the community with programs and supports which provide a ‘wrap-around’ response for the growing community.

Partnerships with the school, maternal and child health, and specialist services have nurtured a socially connected, responsive and inclusive local community and the results have proved successful.

‘The kindergarten is an amazing place’, says mother of three, Sandra King.

‘For our family it has provided a warm and caring environment that has supported us in a very supportive and natural way.

‘It has done more for us than provide early education for my five year old, Jasmine, it has given us a family-focused environment with meaningful programs and forums to gather together–it has facilitated lasting relationships within a tight community’.

The co-location of early childhood facilities with schools helps facilitate positive transitions for children between kindergarten and formal schooling and enables communities to become more child-friendly by providing readily accessible services that assist children in getting the best start in life.

Sandra adds, ‘Because we were receiving shared newsletters, having excursions and shared learning

opportunities at the school, while in kinder, our transition from kinder to prep was very smooth and accepted by our whole family.

‘Just being able to see the children through the fence, gave Jasmine exposure to some of the school routine, which made talking about her future environment much easier when the time came’.

Educator at the kindergarten, Rose Torre, explains that the benefits of maintained, trusted relationships deliver positive outcomes for school teachers, children and families.

‘I hear all their stories through the fence’, she says. ‘I know when a child is having difficulty in their new environment – they know and trust me and they share their feelings with me. I am then in a position to share this with their families and new school teachers’.

‘We also get to share the positive aspects of co-location which includes siblings checking in with each other during lunchtime and children showing me their skills on the monkey bars in the school playground.’

‘I love nothing more than to hear ongoing updates from my former kinder students’. Rose says.

One of ECMS’s strategic priorities over the next five years is to explore opportunities to innovate and integrate early year’s services in a way that enhances outcomes for children, families and communities. We recognise, support and commit to the fundamental principles that are key to the success of community-led service delivery.

Delivering quality family-centred services that respond to community needs

93% of ECMS services assessed under the National Quality Framework rated as ‘exceeding’ or ‘meeting’ national standards

98.1% of parent survey respondents feel their child is in a safe and secure environment

98.8% of parent survey respondents feel their child has been encouraged to show independence, co-operation, confidence and curiosity in the service

Delivering quality and responsiveness

Facilitating smoother transitions

25Early Childhood Management Services ANNUAL REPORT 2013

Real stories - Naomi’s story

When Naomi walked into ECMS’s QV Children’s Centre six years ago she felt excited and a little daunted. With a recently completed Diploma of Children’s Services, Naomi’s role as the centre’s Toddler Room Leader was the first step in her career.

Six years later and Naomi is an experienced early childhood professional. Having held various positions across ECMS Long Day Care and Family Day Care services, she has worked directly with children and families and in a leadership and support capacity.

‘I love a challenge!’ Naomi enthuses. ‘Any new role that is going to offer me something new to learn makes me pretty happy.’

This thirst for knowledge was the impetus for Naomi returning to university in 2008 to study her Bachelor of Early Childhood, whilst continuing to work for ECMS full-time, a decision supported by ECMS.

‘ECMS granted me study leave on top of my standard leave entitlements whilst I was completing my degree. That was amazing as it demonstrated both their commitment to my education and to my work-life balance.’

In addition to her studies, Naomi has benefited greatly from the professional development opportunities available to ECMS staff.

‘The importance of professional development is well communicated at ECMS. Staff attend ECMS PD days and training managed by external providers throughout the year,’ she says.

‘Having access to so much professional development is just amazing. Many of my industry peers don’t have these opportunities available to them through their employer, so it’s a fantastic opportunity for ECMS staff.’

Perhaps the biggest professional highlight for Naomi was representing ECMS at early childhood conferences in Perth and Adelaide. ‘That was an incredible opportunity! It really demonstrated the value ECMS placed in me as an employee.’

Naomi also benefited from the individual mentoring and support she received at ECMS. ‘I knew that I could go to the operations team and talk to them about my career aspirations. When I showed an interest in moving into a leadership role, I worked with the team to develop my leadership skills. This was a huge help for me,’ she says.

Having recently moved into a new state government role working with early childhood services, it is the experience she gained whilst at ECMS that has placed Naomi in good stead as she enters this new phase of her career. ‘My roles at ECMS gave me everything –every skill that I require for my new job.

‘What I learnt about the operation of children’s services during my time at ECMS has given me the knowledge and understanding to work with a range of licensed children’s services in my new role at the Department of Education and Early Childhood Development, as well as implement the National Quality Framework, including putting the National Law, Regulations and National Quality Standards into practice. Having personally experienced the implementation of these has meant I am better equipped for discussions with approved providers and educators when visiting services for assessment or regulation.

‘I feel like I was a little seed that was planted in the organisation and that I’ve grown into a sapling – maybe I’ve even got some fruit,’ she laughs.

So what advice would Naomi give to others contemplating a career with ECMS?

‘I’d definitely recommend people apply for a role within ECMS. There are so many people to turn to for support. ECMS are so dedicated to their staff and to the families and children within their services.’

Valuing our people and team

Supporting our staff like Naomi

Building a committed, professional team in an inclusive learning culture

95% of ECMS parents believe that their educators offer programs and care which promotes positive outcomes for children & families

70% staff engagement index based on the ECMS staff survey, 9% above the benchmark for organisations

95% of staff are willing to put in extra effort to get the job done

valuing our people and team

ECMS is committed to the continual development of its early learning services to meet the evolving needs of the children, families and communities with whom it works.

As part of this commitment, the ECMS Board developed a policy to reinvest ECMS surplus operating funds into service improvements that realise its mission: to create opportunities for children, families and communities to discover and realise their potential.

In 2013 the ECMS Board announced the first of its surplus reinvestment initiatives, pledging $350,000, over three years, to improve the outdoor learning environments across a number of ECMS services.

‘We are delighted by the opportunity to reinvest in our services in a tangible and meaningful way that will have a positive impact on children, families and educators,’ says ECMS Board Chair Joanne Murray

‘We are mindful that investing in the future requires us to strike a fine balance between delivering affordable, quality services today, whilst also having an eye to the future and ensuring that we continue to evolve and refine the way that we work in what is a dynamic, quickly evolving sector.’

The outdoor environment improvement initiative was chosen because of the relationship between stimulating outdoor learning spaces and quality outcomes for children. Evidence and best practice demonstrates that children benefit from the opportunity to explore and learn the skills required to manage self-risk, demonstrate capabilities and develop resilience – stimulating outdoor natural play spaces provide the opportunity for children to develop robust and meaningful play.

The freedom offered by the outdoors provides opportunities for children to explore new ideas and develop new skills. At the same time, it provides a backdrop from which our educators can program meaningful and relevant learning.

This project presents a fantastic opportunity for ECMS to work in partnership with families and communities to establish revitalised outdoor environments that best meet children’s needs.

Along with the outdoor environment improvement initiative, ECMS is dedicated to investing in strengthening its work around quality, research and service improvement.

‘Over the past two years we have been progressively strengthening our team to enable us to better support our educators in developing quality and inclusive services that are responsive to the needs of the communities with whom we work,’ says ECMS CEO Bernie Nott.

In 2013 ECMS announced the establishment of a Quality, Research and Service Improvement Unit. The new unit will lead quality and continuous improvement initiatives, develop inclusion programs, conduct research into practice that informs future service development and provide advice to government and other bodies on the future direction of early learning programs.

‘This heralds an exciting next step in our development as an organisation that is committed to shaping policy and service innovations that will benefit tomorrow’s children and families,’ Bernie says.

Optimising the sustainable use of the resources we are entrusted with

$650k surplus (2.2% ROI)

$350k of 2012 surplus income allocated to improving the outdoor learning environments in ECMS services

4 satellite offices established across Melbourne to support localised service delivery

Commitment to resources and sustainability

Brighter futures for all


01Joanne Murray Board Chair

Director, Consulting Services, Orion Consulting Group

02Theo panay Deputy Chair

03 Andrew Nguyen Treasurer

04John Fasso Public Officer

General Manager, Network Solutions Marketing, Telstra Global Enterprise Services

05Kim O’Neill Member

Chief Executive Officer FMC, Mediation and Counselling Victoria

06Stephen Thompson Member

General Manager, Strategy, Tabcorp Holdings

07Michael Deschepper Member

Chief Financial Officer, Wintringham

08Erin Birch Member

PwC | Manager

09Kay Gibbons Member

Manager Nutrition Services, The Royal Children’s Hospital, Melbourne

10Felicity Griffin Clark Member

11Hayley parkes Member

Assistant Director, Australian Competition and Consumer Commission

12Stuart McCraith Member

Manager, LIFD Notification and Reporting, NBN Co

Our Board

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Our Board

The governing Board of ECMS is made up of an incredibly diverse, experienced, passionate and professional group of people. They care deeply about the opportunities that young children have to be their best – they volunteer their time to contribute to the ECMS community and govern our organisation from the perspective of our members.

Following a major revision of our 5 year strategic plan in 2010, throughout 2011 the Board was focused on expanding that plan and ensuring that the organisation was empowered to deliver on the important outcomes that we seek to achieve for children, families and communities that we work with.

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Treasurer’s report for 2013

The summarised accounts presented with this report are for the financial year 1 January 2013 to 31 December 2013.

Statement of Comprehensive income

Overall, ECMS recorded a surplus of $651,403 for the year to 31 December 2013 compared to a surplus of $966,321 for the year to 31 December 2012.

• The investment portfolio yielded a $175,270 net return for the year ended 31 December 2013. For the previous year end 31 December 2012 the investment portfolio yielded a positive net return of $250,321 due to share market forces.

• The operational result for the year to 31 December 2013 was a surplus of $476,133 compared to a surplus of $716,000 for the previous year ending 31 December 2012.

The operational result reflects lower than anticipated kindergarten enrolments and the commitment to investing in organisational capability.

Statement of Financial position

Total Equity in the ECMS Statement of Financial Position as at 31 December 2013 is $4,617,566 which is up $651,403 on the position at 31 December 3012 of $3,966,163 reflecting the impact of the surplus result for 2013

Overall ECMS Childcare Centres experienced a slightly higher utilisation in 2013 (89.03%) compared to 2012 (88.4%) reflecting continuing healthy demand. While utilisation was higher than previous years the introduction of changes to staffing ratios as part of the national quality reforms placed further pressure on costs. This resulted in the operational performance for the childcare portfolio being slightly lower in 2013 than compared to 2012. ECMS continues to manage a fine balance between the cost of these important quality reforms with ensuring services remain affordable for parents.

Operational performance across the ECMS kindergartens improved slightly while our network of services continued to expand. Kindergarten enrolments were slightly lower than expected due to delays in the commissioning of Alamanda Kindergarten and shifting demographics within the Hobsons Bay, Northern, and Southern Regions.

During 2013, further investment was made in organisational capability to deliver on our strategic goals and meet the increasing quality, compliance and reporting obligations placed on cluster managers. Investment in the establishment of the Quality, Research and Service Improvement Team, People and Culture capabilities and operational leadership places ECMS in a good position to lead communities in shaping quality and inclusive early learning services for the future.

Looking to the future, important decisions facing governments around the Productivity Commission Inquiry into Childcare and Early Learning as well as the future of key national partnerships are likely have a lasting impact on the sustainable contribution that early childhood education and care services make in shaping the future. ECMS will continue to advocate for increased investment by all levels of Government in creating a community where every child has the opportunity to be their best.

Treasurer’s report for 2013

2013 2012

CUrrENT ASSETS

Cash and cash equivalents 2,723,991 2,814,392

Trade and other receivables 495,538 395,331

Financial Assets 3,084,451 3,328,092

Other assets 314,733 139,944

Total current assets 6,618,713 6,677,759

NON-CUrrENT ASSETS

Property, plant & equipment 1,056,827 923,019

Intangible assets 75,839 83,668

Total non-current assets 1,132,666 1,006,687

TOTAL ASSETS 7,751,379 7,684,446

CUrrENT LiABiLiTiES

Trade and other payables 597,351 749,708

Interest-bearing liabilities 3,714 8,195

Employee benefits liabilities 1,628,087 1,332,883

Other liabilities 541,560 1,313,450

Total current liabilities 2,770,712 3,404,236

NON-CUrrENT LiABiLiTiES

Interest-bearing liabilities 0 3,714

Employee benefits liabilities 363,101 310,333

Total non-current liabilities 363,101 314,047

TOTAL LiABiLiTiES 3,133,813 3,718,283

NET ASSETS 4,617,566 3,966,163

EQUiTy

Reserves 2,955,836 2,502,467

Accumulated surplus/(deficit) 1,661,730 1,463,696

TOTAL EQUiTy 4,617,566 3,966,163

Statement of Financial Position at 31st December 2013



2013 2012

rEvENUE

Childcare fees 13,361,523 12,262,183

Kindergarten fees 4,798,564 4,051,773

Family Day Care fees 1,108,068 1,546,387

Management fees 145,491 169,771

Consulting fees 0 0

Grants 9,953,864 7,126,108

Interest 84,666 82,222

Rent 0 2,667

Project income 145,281 147,188

Other Income 134,592 152,945

TOTAL rEvENUE 29,732,049 25,541,244

Other Income 182,582 261,702

TOTAL iNCOME 29,914,631 25,802,946

EXpENSES

Administration expenses 4,172,728 3,998,797

Depreciation and amortisation expenses 262,236 214,623

Employee benefits expense 22,570,254 18,729,554

Occupancy expenses 2,118,819 1,778,976

Other expenses 137,701 112,765

Finance Costs 1,490 1,910

TOTAL EXpENSES 29,263,228 24,836,625

NET SUrpLUS / (DEFiCiT) 651,403 966,321

Statement of Comprehensive Income for the year ended 31 December 2013

Auditor’s report for 2013

Auditor’s report for 2013

Independent Auditor’s Report to the members of Early Childhood Management Services Inc.

We have audited the accompanying financial report, being a special purpose financial report, of Early Childhood Management Services Inc, which comprises the statement of financial position as at 31 December 2013, the statement of profit or loss and 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 Members of the Board of Management as set out on pages 1 to 21.

Board of Management‘s responsibility for the Financial report

The Board of Management is responsible for the preparation and fair presentation of the financial report and have determined that the basis of preparation described in Note 3, is appropriate to meet the financial reporting requirements of the Associations Incorporation Reform Act (Vic) 2012 and is appropriate to meet the needs of the members. The Board of Management’s responsibility also includes such internal control as the Board of Management’s determine is necessary to enable the preparation and fair presentation 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 that gives a true and fair view, 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 Board of Management, 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 presents fairly, in all material respects, the financial position of Early Childhood Management Services Inc. as at 3I December 2013 and its financial performance for the year then ended in accordance with the financial reporting requirements of the Associations Incorporation Reform Act (Vic) 2012 as described in Note 3.

Basis of Accounting and restriction on Distribution and Use

Without modifying our opinion, we draw attention to Note 3 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Early Childhood Management Services Inc. to meet the financial reporting requirements of the Associations Incorporation Reform Act (Vic) 2012. As a result, the financial report may not be suitable for another purpose. Our report is intended solely for the members and should not be distributed to or used by parties other than the members.

Deloitte Touche Tohmatsu

isabelle Lefevre Partner

Thank youWe would like to acknowledge each and every person who has played a part in shaping the future over the past year, including our dedicated team of educators, our support staff and our voluntary Board. In particular, we would like to acknowledge our partners, those in local and state government, the many committed parents and families who contribute in so many different and important ways to shaping the services of the future.

ECMS could not achieve these results without the trusted partnerships of our service partners.

Acknowledgements

Thank you to all the families and staff members who

contributed to the creation of this Annual Report.

Written by Kate Jeremiah

& Simone Power

Editing by Edwina Hall

Photography by Angie Basdekis

Design by Mullan Design

Discover ECMS

192 High Street, Northcote VIC 3070 03 8481 1100 [email protected]

www.ecms.org.au


Annual Report 2013

Documents

2013 ECMS Annual Report