Centacere Annual Report 2011

Annual Report AN

NU

AL

RE

PO

RT

Contents

2

AN

NU

AL

RE

PO

RT

2011

Introduction .................................................................................................................................................2

Chairperson’s Report ...................................................................................................................................3

General Manager’s Report ..........................................................................................................................4

Our Values and Vision .................................................................................................................................5

Who We Are ................................................................................................................................................6

Board Members ....................................................................................................................................... 8-9

Registered Training Organisation – RTO ....................................................................................................10

Language, Literacy and Numeracy Program – LLNP ..................................................................................11

Australian Apprenticeship Access Program ...............................................................................................12

Centacare Employment and Training Financial Statements ......................................................................13

Declaration by the Board of Management ................................................................................................15

Independent Auditor’s Report............................................................................................................. 16-17

Income Statement .....................................................................................................................................18

Statement of Financial Position .................................................................................................................19

Statement of Changes in Equity ................................................................................................................20

Statement of Cash Flows ...........................................................................................................................21

Notes to and Forming Part of the Financial Statements...................................................................... 22-24

Statement of Program Performance .........................................................................................................25

Centacare Employment and Training Financial Statements - Gift Assistance Trust Fund ..........................26

Declaration by the Board of Management ................................................................................................27

Independent Auditor’s Report............................................................................................................. 28-29

Income Statement .....................................................................................................................................30

Statement of Financial Position .................................................................................................................30

Statement of Changes in Equity ................................................................................................................31

Notes to and Forming Part of the Financial Statements............................................................................32

Locations ...................................................................................................................................................34

Contents

1

2

Introduction

After a year of massive environmental destruction around Australia it seems more important than ever that Centacare Employment and Training (CET) keeps its focus on helping, respecting and educating people so sustainable and enriching futures can be created.

Too often caring and compassion get pushed aside by the need for organisations to meet bottom line projections and forecasts, however CET remains committed to ensuring caring and compassion remain as two of its central mission values.

As Scott Johnson once said, “Caring is a powerful business advantage,” and this year CET has certainly proven that to be the case with the organisation reporting outstanding financial performance across each of its programs whilst keeping its empathy for clients paramount.

This year CET has continued to assist society’s most disadvantaged, with a large percentage of clients being Culturally and Linguistically Diverse (CaLD) migrants who are arriving in Australia with little or no language, literacy or numeracy skills. Other disadvantaged groups include Youth

at Risk, the unemployed, Indigenous Australians and people with a disability with all groups having a good take up rate in all CET programs.

The success of the organisation remains hinged on the calibre of staff employed at CET, with staff being the biggest asset. The staffs’ tireless dedication to meeting the organisation’s mission of encouraging clients to regain and sustain their dignity by working towards building economic and social livelihoods for themselves is to be commended. New staff members are made very aware of the mission to ensure this essential component of CET remains undiluted in the coming years.

Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.”Leo F Buscaglia

Chairmans Report

3

Less than two years ago, Centacare Employment and Training was struggling to stay afloat in a visibly changed employment services environment. The loss of a major government contract had made a huge impact on our income and our ability to continue without retrenching staff and looking for cheaper premises. Additionally, we had developed significant internal management and staff problems characterised in some cases by factionalism and deliberate non-cooperation. Staff morale was low and there was a general feeling of insecurity. In short, CET was not a very happy place in which to work and it was no surprise that a number of highly valued staff chose to leave the organisation before steps were taken to shed some of those considered to be uncooperative.

Towards the end of 2009, our then Executive Director announced his decision to resign for family reasons. At that time the Board of Management was engaged in a debate as to whether we should seek to amalgamate with another not-for-profit services provider because of our precarious future. As chairman I was not in favour of this, seeing such an amalgamation as more likely to lead to the loss of our identity and proud history as a respected agency. We decided to continue in our own right, consolidate the contracts we had and what we did best, and look for new opportunities in a changed market. At about this time, CET, like other agencies of the Church, was scheduled for a review by the Archdiocesan Agency Review Committee. The subsequent report of that review made note of our intention to continue as a separate agency and made a recommendation that we should seek to have a representative of the Archdiocesan Office on our Board of Management - something we were enthusiastic about. Since then we have actively sought such representation but it has proved more difficult than we anticipated. We now expect to have a representative by the end of the current year.

After the Executive Director’s departure at the end of 2009, the Board appointed Ms Lee-Anne Phillips, already a section manager with CET, as Acting General Manager of the organisation. Lee-Anne started her new role in January 2010 and quickly gained the confidence of staff and Board members. She was confirmed as General Manager after a brief period in her acting role. Under her leadership we have enjoyed a significant turn around in our fortunes. With the hard work and cooperation of programme managers and all staff, we have improved services and increased income in all our contracted programmes, upgraded accommodation significantly where required, and restored a pleasant and supportive working environment. At the conclusion of the financial year in June 2011, we showed a reasonably healthy surplus and, in the months since then, we have been awarded extra ACCESS places and are expecting additional income in some other areas. The Board recently added two very active new members and will shortly approve a strategic plan for the future of CET. Accordingly, our future appears very much brighter.

On behalf of the Board of Management I congratulate Lee-Anne, her management team and all staff members for all their hard work, not only in the past twelve months, but also during the turmoil of the previous year. We look forward to continued success in pursuing our mandate as a provider of much-needed services to those struggling to find and secure relevant employment.

Eric MoxhamChairmanCET.

4

General Managers Report

Centacare has met each challenge over the past 12 months with determination and resilience in order to succeed. The organisation has grown stronger, delivering quality services to over 1000 people in 2010 and we will continue to grow in quality and commitment. Centacare has achieved many significant outcomes and enhanced the lives of many people through training and education, which on many occasions has assisted them into employment.

Transparent reporting is proving to be fundamental for all organisations in the not for profit sector. This coupled with the focus on new tax regulations for charities and not-for-profits, increasing layers of compliance being placed upon all services, and the micro managing of contracts makes it difficult to compete in this environment. Furthermore, to be successful in securing new business much research and analysis including complex financial modelling is required, if you do not have the infrastructure to support these requirements winning new business is virtually impossible. Having said this, our senior management team at Centacare are well established in the protocols and requirements and are able to produce quality tender documents. As we look to the future we will continually evaluate our services and look for new opportunities and resources which will ensure our growth and survival into the future.

Fortunately, Centacare is comprised of staff members who believe people can make an important economic contribution to the Western Australian community. In addition to this they bring professionalism, and a passion to succeed when they come to work each and every day.

I must acknowledge the staff of this organisation and the Board of Management who supports our work through their belief in the work and commitment to the ongoing benefit of the community. I thank you all for another successful year.

Lee-Anne PhillipsGeneral Manager

Our Values and Vision

5

Centacare Employment and Training encourages clients to regain and sustain their dignity and work towards building economic and social livelihoods for themselves. CET carries out its business in a manner that reflects commitment to the following values:

A Christian ethos, implemented in a manner that does not exclude any job seeker;

High ethical standards;

A high level of accountability – to clients, customers, government and the community; and

A commitment to deliver all services in a professional manner using best practice methods at all times.

“Caring is a powerful business advantage.”Scott Johnson

6

Who we are

His Grace Barry J Hickey, Roman Catholic Archbishop of Perth and Director of Centacare Marriage and Family Services opened Centacare Employment and Training on December 5, 1976. Established as a Community Youth Support Scheme, CET commenced its operations with a small budget and two full time staff members.

Over the past three and a half decades CET has evolved with demographic population changes and has grown significantly as a result. Today, CET is one of the largest community based employment and training organisations in Perth, offering a range of programs specifically targeted to help individuals build economic and social livelihoods for themselves.

In 2011, Centacare Employment and Training offers its services through eight sites spread out across the Perth Metropolitan Area, spanning from Joondalup in the northern corridor, through to Midland in the east and Gosnells in the southern corridor. In addition, Centacare is now able to service some rural clients from our Northam office, which is located in the eastern farm belt, 85 kilometres from Perth.

This year, Centacare Employment and Training has been able to offer clients the following programs:

Australian Apprenticeship Access Program;

Language, Literacy and Numeracy Program; and

Registered Training Organisation offering training in:

Certificate I Hospitality;

Certificate II Hospitality;

Certificate III Health Services Assistance;

Certificate III Health Support Services; and

Certificate II Business.

Contents

7

I emphasize self-esteem, self-confidence, and dignity, not as an ideal, but as a real test of community organization. Without leadership development, community organizations do not have staying power.Paul Wellstone

8

Board Members

Eric Moxham Chairman

Eric retired from full-time employment as a psychologist in the education and training fields some years ago. He now works part-time with a large company providing psychological services to a wide range of commercial, not-for-profit, and government organisations. Eric has wide experience as a committee member and chairperson in various settings at local, national and international levels.

Gwen WoodBoard Member

Gwen was appointed to the Centacare Employment & Training Board at November 2005’s Annual General Meeting. She is a Manager with the Department of Health, with double degrees in Education and Psychology and Post Graduate Diploma in Business. Prior to joining the Department of Health, Gwen worked in the Vocational Education & Training sector for many years, first as a lecturer then as Program Manager, and prior to that was a Commonwealth Employment Officer (Centrelink). She brings very relevant expertise to her position on the Centacare Employment & Training Board.

Ray CochraneBoard Member

After a career of more than 40 years in retail banking and later transport, Ray Cochrane recently retired. As a retail banker with the ANZ Bank, Ray held a number of senior management roles in Perth and Melbourne including National Manager Communications and National Manager Planning and Representation. Ray was Managing Director of Veolia Transport Perth and Executive Director Veolia Transport WA. He was also on the Board of Directors for Veolia Transport NSW and Veolia Transport Queensland as well as the Best Practice Manager for Veolia Transport Australasia. He now consults privately as a business coach.

9

Board Members

Dr. Jaya Earnest Board Member

Dr Jaya Earnest has over twenty five years’ experience working in India, Kenya, Uganda, Rwanda, East Timor and Australia as an educator and researcher. Educated in India and England, Jaya completed her PhD at Curtin University, where she is currently the Director of Graduate Studies in the Faculty of Health Sciences, Curtin University and Associate Professor of International Health at the Centre for International Health, Curtin University. Jaya strongly believes in social justice and is passionate about women’s and youth issues, has been a foster carer for the Department of Child Protection (DCP) for the last 9 years and in that role liaises with the DCP.

Neville WardBoard Member

Neville has spent 30 years in Senior Management in operations, marketing and strategic planning, human resources, corporate restructuring and consultancy. He is involved with the pastoral mission of the Catholic Church and is past State Executive Officer, Knights of the Southern Cross (WA) Inc. Past board memberships include - Archbishops Lifelink committee, Chairman - Overseas Aid Fund for the Education of Children in Vietnam, Board of Management - KSC Education Foundation Inc, KSC Charitable Foundation Inc, Curriculum Advisory Committee, School of Nursing, Curtin University.

Lucas WilkBoard Member

Lucas is a legal practitioner with over 15 years’ experience. Lucas specialises in litigation, arbitration, alternative dispute resolution and insolvency. His clients include Australian listed companies, multinational corporations, foreign clients and local and international banks. He holds a Bachelor of Laws with Honours and a Bachelor of Commerce (Accounting major). Lucas is also a member of the Editorial Board of the University of Notre Dame Australia Law Review. Lucas is committed to assisting others to fulfil their true potential.

9

10

Registered Training Organisation (RTO)

Centacare continued to help a cross section of people through 2010 by offering courses with realistic achievable outcomes in a supportive environment.

The Certificate III in Health Services Assistance continues to be in high demand particularly for people whose first language is not English. This course is funded for the Culturally and Linguistically Diverse (CaLD) clients by the Department of Training and Workforce Development through the Competitive Allocated Training (CAT) tender process. With the addition of funding for a CAVSS lecturer to further assist the student’s with their language and literacy, outcomes both in terms of course completion and employment have been excellent. In addition to the CAT funding for the Certificate III in Health Services, the department funded a further 20 places for job seekers through the Productivity Places Program. These places were quickly snapped up by the Job Services Agencies referring their clients to the course.

Centacare formed a partnership with the Australian School of Tourism and Hospitality Management during 2010 to provide the Certificate I in Hospitality (Kitchen Operations) for CaLD clients. This proved to be very popular and successful with all of the allocated places being taken. A graduation for two of the groups completing the health course was held in the middle of the year with students from the hospitality course responsible for catering the event. They impressed all of the students, staff and invited guests with the range and quality of refreshments they were able to produce after only a few weeks of training.

The Department of Training and Workforce Development have, for the first time, approved funding of our courses for three years. This three year funding is not only for the above two courses but also for the Certificate II in Business for CaLD clients and the Certificate II in Hospitality for Youth at Risk.

With the assurance of funding for these courses from 2011 to 2013, and further opportunities for Centacare to benefit from the recent government funding initiative to promote work readiness and facilitate entry level participation in the workforce, the RTO is in a good position to further expand.

“To give aid to every poor man is far beyond the reach

and power of every man. Care of the poor is incumbent on

society as a whole.” Dr Charles Edwards

Language, Literacy and Numeracy

Program (LLNP)

11

Centacare was successful in securing a new contract in 2010/2011 and as part of this a new IT system was implemented. The system proved to be problematic and was fraught with numerous problems but despite these problems, looking after our students remained of paramount importance and this was well managed by all staff involved.

The main aim of our Language, Literacy and Numeracy Program (LLNP) is to provide vital support and skills to adult students who have language, literacy and or numeracy barriers which hinder them being competitive in the labour market, or which hinder them from gaining access to further education and training. There are three basic streams: 1) Basic Language Stream; 2) Advanced Language Stream; and 3) Literacy and Numeracy Stream.

The program caters for students from a wide variety of national and cultural backgrounds whose ages range from 15 to 65 years. It also caters for students from a wide variety of educational backgrounds i.e. from no previous schooling to third level education. The program has been very successful in its ability to retain students and in supporting the development of their skills and qualifications. This is due to the genuine and personal interest and skills of our highly talented and gifted teachers. Our teachers continue being eager to support students’ creative needs by in-house publishing projects as well as developing reading, writing, oral communication, numeracy and computer skills. Confidence gained from these projects enables students to take an active role outside of the ‘classroom’.

The program continued to grow to approximately 600 - 700 students, fluctuating at times, depending on the TAFE year, and stabilising at approximately 650 students. Mirrabooka continues to be the busiest site and accounts for almost half of our student numbers. Maddington, Perth and Gosnells are the next biggest sites with approximately 5 – 9 classes, with Midland and Northam being the two sites with just one class. To ensure maximum coverage across the Perth metropolitan area, the LLN program operates across eight sites; Midland, Wellington Street Perth, Murray St West Perth, Maddington, Gosnells, Mirrabooka, Joondalup and Northam.

Relationships with Centrelink staff and the new Jobs Services Australia (JSA) staff continued to develop throughout the year as we all became fluent in the new systems and processes involved in the referral and reciprocal information. Centacare is a well respected and valued provider of LLNP throughout the Perth metropolitan area and continues to gain recognition in Northam. It is envisaged we will continue to provide LLNP in this contract, given the nine year rollover potential, at least until 2019.

“A liberal education is at the heart of a civil society, and at the heart of a liberal education is the act of teaching. ”

Dr Charles Edwards

12

Australian Apprenticeship Access Program

This year, the Australian Government-funded Apprenticeship Access Program has seen the Access Program being delivered in all of the regional areas of WA as well as being fully subscribed in the Perth Metro area. Through the Access Program, vulnerable job seekers are provided with free training which is delivered by a RTO. This is followed with a work experience placement leading to an Employment, Traineeship/Apprenticeship or Further Education and Training career pathway outcome. Once placed, each participant is supported to maintain their placement for 13 weeks.

In the 2010-2011 year the Access Program provided job seekers with opportunities in computing, office and

basic business skills, automotive servicing, construction, aged care support, life skills, career development, hospitality and hairdressing.

As the only WA-based broker of the Australian Apprenticeship Access

Program, Centacare Employment and Training has continued to grow the program in accordance with our contractual obligations, always keeping in mind that the Access Program is about people and relationships.

Our focus, consistent with our Christian ethos, is and always will be to ‘encourage clients to regain and sustain their dignity and work towards building economic and social livelihoods for themselves.’ This is the heart of the Apprenticeship Access Program.

“Education is the key to unlock the golden door of freedom.” Dr Charles Edwards

For the year ended 30 June 2011

Financial Statements

14 14

Life’s up and downs provide windows of opportunity to determine your values and goals - think of using all obstacles as stepping stones to build the life you want” Marsha Sinetar

15

Centacare Employment and Training Financials

DECLARATION BY THE BOARD OF MANAGEMENT

The members of the Board of Management declare that the agency is not a reporting entity, and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the Financial Statements.

The members of the Board of Management declare that to the best of our knowledge and belief the financial statements and notes, as set out on pages 4 to 12, present fairly the agency’s financial position as at 30 June 2011, and its performance and cash flows for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.

This declaration is made in accordance with a resolution of the Board of Management.

Gwen Wood

Member of the Board of Management

Perth, Western Australia

21 September 2011

16


To the members of

CENTACARE EMPLOYMENT AND TRAINING

We have audited the accompanying financial report, being a special purpose financial report, of Centacare Employment and Training, which comprises the statement of financial position as at 30 June 2011, and the income statement, statement of changes in equity, statement of cash flows and notes to the financial statements for the year then ended as set out on pages 4 to 11.

The Responsibility of the Board for the Financial Report

The members of the Board of Management of the entity are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements which form part of the financial report are appropriate to meet the financial reporting requirements of the Constitution and are appropriate to meet the needs of the members. The Board members’ responsibility also includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing 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 controls 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report.

17

The financial report has been prepared for the purpose of fulfilling the requirements of the Constitution. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared.

Our audit did not involve an analysis of the prudence of business decisions made by the members of the Board or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.

Auditor’s Opinion

In our opinion, the financial report presents fairly, in all material respects, the financial position of Centacare Employment and Training as at 30 June 2011 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Centacare Employment and Training to meet the requirements of its Constitution and for the purpose of fulfilling the Board of Management’s financial reporting responsibilities. As a result, the financial report may not be suitable for another purpose.

INDEPENDENT AUDITOR’S REPORT


HLB MANN JUDDChartered Accountants

L DI GIALLONARDOPartner

Perth, Western Australia | 21 September 2011

18


2011 2010

INCOME $ $

Employment Services & Personal Support - 4,379

Connections Program - 220,172

Brokerage Fees and Outcomes 675,350 320,500

Training Services (LLNP & CAT) 3,955,873 3,112,335

Other Grants & Programs 900 7,231

Archdiocesan Subsidy 62,727 61,800

Interest Recieved 30,218 14,340

Sale of Assets 21,636 46,364

Insurance Recovery 5,157 -

Wages & other expenses Recouped 7,722 10,729

4,759,583 3,797,850

EXPENDITURE

Staff (Wages, Superannuation, FBT, Insurance, Training, Travel, Welfare) 2,730,611 2,346,194

Accommodation (Rental, Maintenance, Cleaning, Electricity, Rates) 672,342 616,243

Low Value Assets (Computers & Equipment) 5,014 18,448

Services & Contracts 769,840 574,864

4,177,807 3,555,749

Operating Surplus 581,776 242,101

Accumulated Funds Brought Forward 595,652 353,551

ACCUMULATED FUNDS 1,177,428 595,652

This Statement forms part of the financial statements and is to be read in conjunction with the Notes to and forming part of the financial statements.

INCOME STATEMENT 30 JUNE 2011

19


2011 2010

CURRENT ASSETS $ $

Cash at Bank 1,862,527 952,379

Petty Cash 2,300 1,800

Term Deposits 225,402 215,325

Accounts Receivable 115,493 433,949

Prepaid Expenses 10,517 8,125

Other Assets - Security Bonds 7,753 7,753

2,223,992 1,619,331

NON-CURRENT ASSETS

Computers & IT Equipment 110,841 29,251

Less: Provision for Depreciation (21,677) (7,828)

Furniture & Fittings 3,852 1,192

Less: Provision for Depreciation (274) (134)

Office Equipment 12,635 12,635


Leasehold Improvements 52,538 41,723


136,108 67,632

TOTAL ASSETS 2,360,100 1,686,963

STATEMENT OF FINANCIAL POSITION30 JUNE 2011

20


STATEMENT OF FINANCIAL POSITION30 JUNE 2011

STATEMENT OF CHANGES IN EQUITY 30 JUNE 2011

2011 2010

CURRENT LIABILITIES $ $

Australian Taxation Office 199,706 156,191

Creditors and Accruals 175,994 135,197

Income in Advance 383,850 477,350

Annual Leave Accrual 144,628 96,853

Provision for Long Service Leave 31,024 22,947

Provision for Redundancy 247,470 202,773

1,182,672 1,091,311

NET ASSETS 1,177,428 595,652

EQUITY

Accumulated Funds 1,177,428 595,652

TOTAL EQUITY 1,177,428 595,652


ACCUMULATED FUNDS $

Balance at 01 July 2009 353,551

Surplus for year ended 30 June 2010 242,101

Balance at 30 June 2010 595,652


Balance at 30 June 2011 1,177,428


21


STATEMENT OF CASH FLOWS30 JUNE 2011

2011 2010

FLOWS FROM OPERATING ACTIVITIES $ $

Receipts

Fees and charges 4,869,958 4,043,013

Archdiocesan Subsidy 62,727 61,800

Interest Received 30,218 14,340

Payments

Staff and Suppliers (3,968,339) (3,432,529)

Interest Paid (410) -

Net cash cash provided by operating activities (Note 2) 994,154 686,624

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds from sale of Property, Plant & Equipment 21,636 46,364

Payments

Purchases of Property, Plant & Equipment (95,065) (55,315)

Net cash used in investing activities (73,429) (8,951)

Net increase in cash held 920,725 677,673

Cash at beginning of reporting period 1,169,504 491,831

Cash at end of reporting period (Note 2) 2,090,229 1,169,504

This statement forms part of the financial statements and is to be read in conjunction with the Notes to and forming part of the Financial Statements.

22


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

30 JUNE 2011

1) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are a special purpose financial report prepared specifically to meet the reporting requirements of the agency’s Constitution.

The Board of Management has determined that the agency is not a reporting entity and therefore there is no requirement to apply Accounting Standards and other mandatory professional reporting requirements. The financial statements have been prepared in accordance with the requirements of the following Accounting Standards:

AASB 107 Statement of Cash Flows AASB 110 Events after the Reporting Period AASB 118 Revenue AASB 1031 Materiality

The accounting policies adopted are consistent with those of the previous year except as otherwise stated.

a) BasisofAccounting

The accounts have been prepared on an accrual basis.

b) Revenue

Revenue is recognised in the Income Statement when conditions attached to earning the revenue are satisfied.

All revenue is stated net of the amount of goods and services tax (GST).

c) Fixed Assets

Asset purchases in excess of $500 per item are capitalised. This policy was first implemented in the 2009 year and represents a change in accounting policy from years prior to 2009 where all asset purchases were expensed.

The capitalisation policy for leasehold improvements is dependent on the lease term and the underlying business contract to which the leasehold improvements relate.

Depreciation is calculated on a straight-line basis over the estimated useful life of the assets to the agency as follows:

Computers & IT Equipment 4 years Furniture & Fittings 10 years Office Equipment 8 years Motor Vehicles 5 years

23


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS30 JUNE 2011

d) Employee Entitlements

Employee entitlements, which include annual leave, long service leave and accrued wages are calculated to meet entitlements at balance date.

Long service leave is accrued at current wage rates after seven (7) years service.

A provision for redundancy has also been recorded and has been calculated based on severance pay payable for the appropriate years of service. This provision has been calculated on a pro-rata basis for part-time employees. This represents a change in valuation method from previous years where the provision was calculated based on full-time hours. No redundancies have been finalised between 30 June 2011 and the date of this report.

e) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.

f) Income Tax

No provision for income tax has been raised, as the entity is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.

g) Economic Dependence

Centacare Employment and Training is dependent on the Department of Education, Employment & Workplace Relations and the Department of Training & Workplace Development for the majority of its revenue used to operate the business. At the date of this report the Board of Management has no reason to believe the Departments will not continue to support Centacare Employment and Training.

24



30 JUNE 2011

2) CASH FLOW INFORMATION

(a)Reconciliationofcash

Cash at the end of the reporting period as shown in the Statement of Cash Flows is reconciled to the related items

in the Statement of Financial Position as follows:

2011 2010

$ $

Cash at Bank 1,862,527 952,379

Petty Cash 2,300 1,800

Term Deposits 225,402 215,325

$2,090,229 $1,169,504

(b)Reconciliationofcashflowfromoperationswithoperatingsurplus:

Operating surplus 581,776 242,101

Increase (Decrease) in Creditors and Accruals 40,797 10,193

Increase (Decrease) in Australian Taxation Office 43,515 61,857

Increase (Decrease) in Provisions for Staff Entitlements 100,549 51,966

Increase (Decrease) in Income in Advance (93,500) 398,950

(Increase) Decrease in Accrued Income - 41,480

(Increase) Decrease in Prepaid Expenses (2,392) (8,125)

(Increase) Decrease in Accounts Receivable 318,456 (72,763)

(Increase) Decrease in Other Assets - (7,753)

Receipts from sale of assets (21,636) (46,364)

Depreciation on Property, Plant & Equipment 26,589 15,082

Net cash provided by operating activities 994,154 686,624

25

STATEMENT OF PROGRAM PERFORMANCE30 JUNE 2011


2011 Income Direct Expenditure

Admin Overhead Expenses

Surplus / (Deficit)

PROGRAM $ $ $ $

Employment Services - - - -

Personal Support - - - -

Training (incl Access 2010 only) 607,719 379,490 78,872 149,357

Access 675,350 546,605 122,255 6,490

Language Literacy & Numeracy 3,352,618 2,588,365 462,220 302,033

POEM (Connections) - - - -

Administration Income 123,896 - - 123,896

TOTALS 4,759,583 3,514,460 663,347 581,776

2010 Income Direct Expenditure

Admin Overhead Expenses

Surplus / (Deficit)

PROGRAM $ $ $ $

Employment Services 4,408 6,968 - (2,560)

Personal Support (29) 1,659 - (1,688)

Training (incl Access 2010 only) 1,063,921 678,139 191,899 193,883

Access - - - -

Language Literacy & Numeracy 2,386,267 1,896,210 526,206 (36,149)

POEM (Connections) 220,172 205,177 49,491 (34,496)

Administration Income 123,111 - - 123,111

TOTALS 3,797,850 2,788,153 767,596 242,101

26

For the year ended 30 June 2011

G I F T A S S I S TA N C E T R U S T F U N DFinancial Statements

27

DECLARATION BY THE BOARD OF MANAGEMENT

The members of the Board of Management declare that the agency is not a reporting entity, and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the Financial Statements.

The members of the Board of Management declare that to the best of our knowledge and belief the financial statements and notes, as set out on pages 4 to 6 present fairly the agency’s financial position as at 30 June 2011, and its performance and cash flows for the year ended on that date.

This declaration is made in accordance with a resolution of the Board of Management.

Gwen Wood

Member of the Board of Management

Perth, Western Australia

21 September 2011

Centacare Employment and Training Gift Assistance Trust Fund Financials

28

To the members of

CENTACARE EMPLOYMENT AND TRAINING

We have audited the accompanying financial report, being a special purpose financial report, of Centacare Employment and Training Gift Assistance Trust Fund, which comprises the balance sheet as at 30 June 2011, and the income statement and notes to the financial statements for the year then ended as set out on pages 4 to 6.

The Responsibility of the Board for the Financial Report

The members of the Board of Management of the entity are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements which form part of the financial report are appropriate to meet the financial reporting requirements of the Constitution and are appropriate to meet the needs of the members. The Board members’ responsibility also includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing 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 controls 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 controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report.


29

The financial report has been prepared for the purpose of fulfilling the requirements of the Constitution. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it was prepared.

Our audit did not involve an analysis of the prudence of business decisions made by the members of the Board or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.

Auditor’s Opinion

In our opinion, the financial report presents fairly, in all material respects, the financial position of Centacare Employment and Training Gift Assistance Trust Fund as at 30 June 2011 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist Centacare Employment and Training Gift Assistance Trust Fund to meet the requirements of its Constitution and for the purpose of fulfilling the Board of Management’s financial reporting responsibilities. As a result, the financial report may not be suitable for another purpose.

INDEPENDENT AUDITOR’S REPORT

HLB MANN JUDDChartered Accountants

L DI GIALLONARDOPartner

Perth, Western Australia | 21 September 2011


30

INCOME STATEMENT 30 JUNE 2011

STATEMENT OF FINANCIAL POSITION 30 JUNE 2011

2011 2010

RECEIPTS $ $

Donations 1,000 -

Interest 1 2

Receipts for Reporting Period 1,001 2

PAYMENTS - -

Surplus of receipts over payments 1,001 2

2011 2010

CURRENT ASSETS $ $

Cash at Bank 1,001 -

NET ASSETS 1,001 -

EQUITY

Accumulated Funds 1,001 -

This statement forms part of the financial statements and is to be read in conjunction with the Notes to and forming part of the financial statements.


31

STATEMENT OF CHANGES IN EQUITY30 JUNE 2011

ACCUMULATED FUNDS $

Balance at 01 July 2009 776

Surplus for year ended 30 June 2010 2

Gift to Centacare Employment and Training (778)

Balance at 30 June 2010 -


Balance at 30 June 2011 1,001



32


30 JUNE 2011

1) STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are a special purpose financial report prepared specifically to meet the reporting requirements of the agency’s Constitution.

The Board of Management has determined that the agency is not a reporting entity and therefore there is no requirement to apply Accounting Standards and other mandatory professional reporting requirements. The financial statements have been prepared in accordance with the requirements of the following Accounting Standards:

AASB 110 Events after the Reporting Period AASB 1031 Materiality

The accounting policies adopted are consistent with those of the previous year except as otherwise stated.

(a)BasisofAccounting

The accounts have been prepared on a cash basis which was consistent with previous years and considered adequate for the level of operations.


33

Learn everything you can, anytime you can, from anyone you can - there will always come a time when you will be grateful you did.” Sarah Caldwell

34

Locations

A PerthHeadOffice

3rd Floor, 641-643 Wellington Street, Perth WA 6000

P 9482 7000F 9322 2448E [email protected]

E Gosnells

108 Lissiman Street,Gosnells WA 6110


C West Perth

Menzies House640 Murray Street,Perth WA 6005


G Joondalup

4/92 Reid Promenade,Joondalup WA 6027


B Midland

Unit 5, 8-12 Stafford Street,Midland WA 6052


F Mirrabooka

Unit 18, 20-24 Chesterfield Road,Mirrabooka WA 6061


H Northam

130 Fitzgerald Street, Northam WA 6401


D Maddington

12 Blackburn Street,Maddington WA 6109


35

G

A

HB

C

F

D

E

36

Notes

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

38

centacarewa.com.au

Documents

Centacere Annual Report 2011