HCM Annual Report 2011

A N N U A L R E P O R T 2 0 1 1HOBART CITY MISSION

The Annual Report of the Board of Management of The Hobart City Mission Inc. for the year ended 30th June 2011, being the 159th year of operation for the Mission.

page 48.

INTRODUCTION

MembersHobart City Mission

Dear Members

Pursuant to Rule 12 (5) of the Constitution of the Hobart City Mission Inc.(HCM), a body corporate established and constituted under the Associations Incorporation Act 1964, the Board of Management (the HCM Board) is pleased to submit its report on the exercise of the HCM Board’s powers, responsibilities and functions under its Constitution for the financial year ended 30th June 2011, being the 159th year of the Mission’s presence in Hobart.

The Annual Report incorporates a copy of audited financial statements prepared by the HCM Board for the year under review.

Yours sincerely

Barry NeilsenACTING PRESIDENTHCM BOARD OF MANAGEMENT

page 1.

HCM – “Living Faith through service in providing an emotional and physical hand up to the poor and those in need or marginalised within the local community”

TABLE OF CONTENTS

page 2.

INTRODUCTION ............................................................................................. page 1.

TABLE OF CONTENTS .................................................................................. page 2.

PRESIDENT’S REPORT ........................................................................... page 3.

THE HCM BOARD OF MANAGEMENT ......................................................... page 4.Duty of the HCM Board page 4.Basic Objects of the Mission page 4.Core Values of the Mission page 5.Scope of Mission Activities page 6.

THE HCM BOARD OF MANAGEMENT GOVERNANCE ................................ page 7.Board Members and Office Holders page 7.Office of President, HCM page 7.HCM Members and CEO Photos page 8.HCM Board of Management - Committees page 9.Major Governance Policies of the Board page 10.Liability Risk Management page 11.Attendance at HCM Board and Committee Meetings 2010/11 page 11.Highlights of HCM Board of Management and Committee Activities 2010/11 page 12.Corporate Intent 2011-2012 page 18.HCM Finance, Investment and Property Management Committee page 19.HCM Communications, Infrastructure and Governance Committee page 20.Management Diagnostic page 21.

HCM ORGANISATIONAL STRUCTURE AND OPERATIONAL REPORT ........ page 22.Ramblings From the CEO’s Desk page 22.HCM Organisational Chart page 23.Family and Community Support Services (FaCSS) page 24.Retail page 28.Corporate Operations page 30.

THE HCM FINANCIAL REPORTS ............................................ page 34.Statement by Officers page 34.The HCM Inc. Statement of Comprehensive Income page 35.The HCM Inc. Program Based Statement of Comprehensive Income page 36.The HCM Inc. Statement of Financial Position page 37.The HCM Inc. Statement of Changes in Equity page 38.The HCM Inc. Notes To and Forming Part of the Accounts page 39.Independent Audit Report page 51.

PART 3THE FINANCIALS

PART 2THE ORGANISATION

PART 1THE BOARD

PRESIDENT’S REPORT

Whilst I have been a Member of the Hobart City Mission Board of Management for more than 12 years and Deputy President for 4 of those years, I was not expecting to be taking over the President’s role during the year when ill health meant our long serving President, Janet Laing needed some time out. Janet is a person of great passion for and commitment to the Mission. For the 14 years that she has been a Member of the Board and particularly the 12 years as Chairperson, she has been the epitome of her favourite scripture reading:-

Micah 6:8

“He has showed you, O man, what is good. And what does the Lord require of you? To act justly and to love mercy and to walk humbly with your God”

The 2010/11 financial year has been a very challenging year. A year where there has been a significant increase in the demand on the services and assistance rendered by the Mission. A year when the Mission faced the issue of subsidising the delivery of services previously funded in full by Government. A year when staff, volunteers, sponsors and friends of the Mission were able to rise to the occasion and ensure all client needs were met and the Mission finishing the year in a solid financial position with a promise of a strong and sustainable future.

The Membership of the Mission Board of Management is in an honorary capacity not withstanding the joint and several responsibilities of the members. Members of the Board have been most diligent and professional in the performance of their duties and this underlies the strong performance of the Mission in difficult financial times. Likewise the skill, dedication and support of the CEO, staff and volunteers of the Mission is much appreciated by the Board in underpinning the successful day-to-day operations of the Mission.

Yours sincerely

Barry NeilsenACTING PRESIDENTHCM BOARD OF MANAGEMENT

page 3.

THE HOBART CITY MISSION BOARD OF MANAGEMENT

DUTY OF THE HOBART CITY MISSION BOARD

It is the duty of the Hobart City Mission (HCM) Board to administer and manage the affairs of the Mission in accordance with the rules of its Constitution and any relevant laws of the State and Commonwealth for the sole purpose of meeting the basic objects, purposes and core values of the Mission

In a practical sense, the HCM Board is responsible for ensuring that:-• The business and affairs of the Mission are managed and conducted in a manner that is in accordance with sound commercial practice;• The Mission performs its required functions; and• The Mission achieves its Corporate Plan as articulated in the HCM Future Directions Statement 2009-2013.

To fulfil these responsibilities, the HCM Board must be and is actively involved in:-• Setting strategic directions;• Securing and continually monitoring organisational performance;• Ensuring compliance with statutory requirements; and• Managing risk.

BASIC OBJECTS OF THE MISSION

The scope of the Mission’s activities is set out as basic objects in its Constitution. These basic objects are to:

(a) Be an ecumenical Christian charitable organisation with a passion to improve the life of those in need or who are marginalised within the local community by providing them with the necessary emotional, physical and financial support and guidance to empower and enable them to participate in community life with a sense of dignity, purpose and self reliance. (b) Undertake such work of philanthropic character as the Board shall from time to time determine.(c) Contract with Commonwealth, State and Community Sector Agencies for the delivery of services to those in need or who are marginalised within the local community.

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CORE VALUES OF THE MISSION

In achieving its basic objects, the HCM Board of Management on behalf of the clients, stakeholders, staff and volunteers of the Mission has embraced the following identifiable characteristics as its Core Values:-

• To affirm its ecumenical Christian heritage and to strive for the Christianprinciples of inclusiveness, love, faith through service and social justice as fundamental to the Mission’s operations;• To achieve mature, empowered, beneficial and effective relationships with clients, stakeholders, relevant statutory agencies and the community generally;• To work in partnership with the local community and other Community Service Organisations for the provision of services with respect to advocacy, mentoring and counselling, accommodation, retail training, financial and emotional support and guidance;• To achieve consistent revenues (donations, grants/bequests, Investment returns) to enable the Mission to continue to operate on a sustainable basis;• To achieve financial independence through prudent financial management and an appropriate balance between government and philanthropic sources of funding;• To achieve exemplary corporate governance including risk management; and• To have empowered, professional and competent staff who meet the needs of the Mission and particularly its clients and stakeholders.

PART ONETHE BOARD

SCOPE OF MISSION ACTIVITIES

In a practical sense, the current activities of the Mission were as at 30th June 2011 as follows:

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INTEGRATED FAMILY SUPPORT SERVICESChild WelfareLiason with DHHSLiason with Gateway ServicesEmergency Relief as required

GROUP HOMES Bligh StreetMercer StreetAtherton AvenueHighfield Street

COMMUNITY SUPPORT SERVICESSupported AccommodationEmergency ReliefCommunity Crisis ServicesCommunity Housing - Mountain ViewIdentified Vulnerable GroupsFinancial GuidanceFamily Support and Advocacy

CLINICAL COUNSELLINGBOARD

FAMILY &COMMUNITY

SUPPORTSERVICES

RETAIL

CORPORATEOPERATIONS

WAREHOUSESGoods collected & storageTransport - delivery & pick-ups

PROPERTY LEASING & MAINTENANCEPartridge NestBarrack CottageChapel Complex

RETAIL OUTLETSHobart City (2)Moonah (2)WarraneHuonvilleGoodwoodClaremont

VOLUNTEER RECRUITMENT & TRAINING

PASTORAL CARE & GOVERNANCEQA & O H & SRegulatory ComplianceMission MembershipChaplains/Pastoral CareResearch & GovernanceChristian PartnershipsBequests/Trust Funding

PROFESSIONAL SERVICESAppeals, Events & GrantsMarketing & Public Relations

BUSINESS SERVICESAccountsICT InfrastructureReceptionExecutive Support to Board & CEO

CEO

BOARD

page 6.

CHIEF FINANCIAL OFFICER

FINANCIAL REPORTING

INVESTMENT & PROPERTY MANAGEMENT

BOARD MEMBERS AND OFFICE HOLDERS

The Constitution of The Hobart City Mission Inc. provides that subject to ratification by the HCM Board:-

• Membership of the Association is open to any person who certifies in writing that they uphold the objects and core values of the Mission. Membership of the Mission can be any of the following classes:-

(a) Denominational Member(b) Associate Member(c) Corporate Member(d) Ordinary Member

• Members of the HCM Board of Management are elected from Association membership for a term of three years, save that casual vacancies may be filled between Annual General Meetings with such Board Members being up for re-election at the next Annual General Meeting (AGM) following the appointment; and• Notwithstanding membership of the HCM Board is for 3 years, Officers of the Board hold that office only for 1 year, but are eligible for re-election.

The Mission membership status as at 30th June 2011 of individual Board Members and Officers of the Board is:-

* Appointed to the Board as a consequence of a casual vacancy and as such is due for re-election at the 2011 AGM.

OFFICE OF PRESIDENT, HOBART CITY MISSION

On 25th May 2011, Janet Laing advised the Board that for personal reasons, it was appropriate for her to resign as President of the Board and to seek leave of the Board to take a period of extended leave as a Member. The Board was saddened by this but understanding of the circumstances and approved the extended leave. The Deputy President, Barry Neilsen was appointed Acting President of the Board until the AGM next occurring.

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BOARD MEMBER HCM MEMBERSHIP ENDS AGM POSITION OF OFFICE HOLDER

Barry Neilsen 2013 Acting President

Janet Laing 2013 Ordinary Board Member

John Wiggins 2014 Ordinary Board Member

Robin Errey 2013 Ordinary Board Member

Aileen Hough 2013 Ordinary Board Member

William Inglis 2013 Ordinary Board Member

Damian Egan 2014 Ordinary Board Member

Ripon Shield 2014 Ordinary Board Member

Gil Sawford 2014 Ordinary Board Member

* Rob Fiddyment 2011 Ordinary Board Member

THE HOBART CITY MISSION BOARD OF MANAGEMENT GOVERNANCE PAR

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PART ONETHE BOARD

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Barry NeilsenActing President

Janet LaingBoard Member

William InglisBoard Member

John WigginsBoard Member

Robin ErreyBoard Member

Aileen HoughBoard Member

Damian EganBoard Member

Ripon ShieldBoard Member

Gil SawfordBoard Member

Rob FiddymentBoard Member

Garry FletcherChief Executive Officer

HOBART CITY MISSION BOARD MEMBERS AND CEO

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page 9.

HOBART CITY MISSION BOARD OF MANAGEMENT - COMMITTEES

The HCM Constitution allows the HCM Board to delegate to members, officers of the Board and staff certain powers, duties and functions to be exercised jointly in the form of Committees. The HCM Board has considered it appropriate to establish the following Committees:

• The Finance, Investment and Property Management Committee; and• The Communications, Infrastructure and Governance Committee.

The Constitution of each Committee is determined by the full Board with the Board being the sole authority for the appointment to and removal of members from a Committee. Each Committee is constituted mainly by voting Board members and the Mission’s Chief Executive Officer as a non-voting executive member of the Board. As at 30th June 2011 the Constitution of the two Committees was:-

The business objective for each Committee is summarised below:

• The Finance, Investment and Property Management Committee:-The objective of the Committee is to make a positive contribution to the investment and property returns of HCM through timely and appropriate investment and property management decisions.

• The Communications, Infrastructure and Governance Committee:-The objective of the Committee is to ensure that administrative issues (including marketing and communication, technology and infrastructure, audit, risk management and governance) are adequately monitored and directed, thereby increasing the business information available to the Board for strategic planning and decision making.

FINANCE, INVESTMENT AND PROPERTY

MANAGEMENT COMMITTEE

COMMUNICATIONS, INFRASTRUCTURE AND

GOVERNANCE COMMITTEE

Chairperson and Voting Member B. Neilsen J. Laing (on leave)

Other Voting MembersJ. WigginsW. InglisD. Egan

R. ErreyR. ShieldA. HoughG. SawfordR. Fiddyment

Non-Voting Executive Members G. Fletcher G. Fletcher

Quorum of Members 4 (3 of whom must be voting) 4 (3 of whom must be voting)

PART ONETHE BOARD

MAJOR GOVERNANCE POLICIES OF THE BOARD

The HCM Board of Management continuously updates its Business and Governance framework in line with the standards expected of a modern Community Sector Organisation. The Table below sets out the process followed as well as the scope of work involved in undertaking these governance upgrades:-

Note: Whilst business and governance development processes are continuously being reviewed and upgraded, the following major policy documents were completed or progressing towards completion as at the 30th of June:-

STAKEHOLDER EXPECTATIONSBoard, Staff, Christian Community,

Competitors, Clients, Agencies, Donors & Service ProvidersWho are / are not HCM

clients? How are they identified?

How best do we engage clients?

What service modelshould HCM follow?

<

What does HCMoffer stakeholders

and clients?

What do other CSO/N4P providers offer

clients / stakeholders?

How does HCM rate? - Clients - Stakeholders

What service model should HCM follow

or develop?

<

<

<

RESEARCH(Niche Market)

FUTURE DIRECTION

(Business Scope)

INFRA-STRUCTURE

CORPORATESTRATEGY

(Vision, Style, Activities, Expectations, Outcomes,

Success Factors)

GOVERNANCERisk Management

ENGAGEMENT OF STAKEHOLDERS

Clients / Staff

MANAGEMENTCIG Committee - FI & PM Committee

OPERATIONSCEO - Operational

Management Team

COMMUNICATIONBUSINESS PLANSPERFORMANCE

INVESTMENTSTRATEGY ASSETMANAGEMENT

BUSINESS UNIT ORGANISATIONAL STRUCTURECurrent Model > Corporate Operations,

FaCSS and Retail

GapAnalysis

GapAnalysis

Client needs - What do they actually need, and

do we meet it?

<

<

MAJOR POLICY DOCUMENT PROGRESS COMPLETES % HCM BOARD STATUS

2009 2010 2011

HCM Corporate Plan – Future Directions Statement 2009-13

100% 100% 100%Adopted and Operational

Governance Manuals including delegations, privacy, conflicts of interest, etc.

100% 100% 100%All documents reviewed

during 2010/11

Staffing Policies including Organisational Chart, HCM key activities, Position Descriptions and Organisational Structure

100% 100% 100%All documents reviewed

during 2010/11

Information Communication and Technology Strategy and Policies


Risk Management Including Fraud and Business Continuity

10% 25% 50%Being Researched

and Developed

Quality Assurance Accreditation 25% 50% 90%Provisional Accreditation

received with Period of Grace Approved for Confirmation

Finance, Investment and Property Management 100% 100% 100%All documents reviewed

during 2010/11

Communication, Infrastructure & Governance StrategyNot

StartedNot

Started50%

Being Researched and Developed

Business Plans (for current year) incorporating HCM Budget for 2011/12


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page 10.

FINANCIALVIABILITY

page 11.

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LIABILITY RISK MANAGEMENT

The HCM Board of Management has purchased Directors and Officers Liability Insurance to protect Board Members for the 2010/2011 financial year. In addition, the HCM Board has taken steps to manage risks and liabilities arising through operational activities by:

• Engaging Davidson Trahaire Corpsych to provide a comprehensive Employees Assistance Programme including some issues relating to workers compensation claims.• Effecting public liability, property and fidelity insurance cover.

ATTENDANCE AT HOBART CITY MISSION BOARD AND COMMITTEE MEETINGS 2010/11

* Retired from Board during 2010/11** New Board member 2010/11

BOARD / COMMITTEE ORDINARY & SPECIAL BOARD MEETINGS

COMMUNICATION INFRA-STRUCTURE & GOVER-

NANCE COMMITTEE

FINANCE, INVESTMENT & PROPERTY

MANAGEMENT

Total Meetings Held During 2010/2011 9 4 4

Members Attendance at Meetings

J. Laing 6 4 -

B. Neilsen 5 - 4

J. Wiggins 7 - 3

A. Hough 5 3 -

R.Errey 9 4 -

W. Inglis 9 - 3

D. Camm * 4 (of 5) 2 (of 2) 2 (of 2)

D. Egan 7 - 4

R. Shield 9 4 -

G Sawford 8 2 (of 3) -

R. Fiddyment ** 2 (of 3) 1 (of 1) -

G. Fletcher (CEO) 9 4 4

PART ONETHE BOARD

HIGHLIGHTS OF HOBART CITY MISSION BOARD OF MANAGEMENT AND COMMITTEE ACTIVITIES FOR 2010/11

The HCM Board of Management is accountable under the Rules of Association for the performance of the Mission in achieving its basic objects and core values. In this regard, the HCM Rules of Association makes it clear the Board is responsible for ensuring:-

• the business and affairs of HCM are managed and conducted in a manner that is in accordance with sound commercial practice; • HCM performs its required functions; and• HCM achieves its objectives as specified in the Constitution, or any other relevant Act, and the Corporate Plan of the HCM.

To fulfill these responsibilities, the Board must be actively involved in: • setting strategic directions; • securing and continually monitoring organisational performance; • ensuring compliance with statutory requirements; and • managing risk.

At the end of each financial year, the HCM Board of Management in consultation with the CEO undertakes an assessment and trend analysis for the performance of the Mission against its Corporate Plan and Business Plan objectives. For the 2010/11 financial year the assessment and trend analysis were as follows:-

page 12.

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PART ONETHE BOARD

CORE VALUEHCM CONSTITUTION

INDICATORS ACTIVITY DESCRIPTION

TREND09/10

TREND10/11

COMMENTS

1. To affirm its ecumenical Christian Heritage and to strive for the Christian principles of inclusiveness love, service and social justice.

> Membership of HCM Association.

> Active support of ecumenical Christian movement.

> Working Christian Partnerships.

• Number of members - say 120.

• All major denominations represented in Membership and on Board.

• Partnerships with other Christian organisations and CSO/N4Ps.

• Marking time but Constitution change will facilitate improvement.

• Marking time – Policy direction and staffing issues.

• Marking time – Policy direction and staffing issues.

2. To achieve mature, empowered, beneficial and effective relationships with clients, stakeholders, relevant statutory agencies and the community generally.

> Client Market Share

> Membership of Industry & Professional Associations.

> One stop capacity for all HCM for products and services.

> Philanthropic/Community Partnerships.

• Critical Mass of clients in all products and services.

• Survey of clients and stakeholders as to relevance of products and services.

• Membership of relevant industry groups and professional associations.

• Participation in PEAK bodies and agency forums.

• All major services provided e.g. (SAAP) Group Homes, Training, Emergency Relief etc.

• Partnerships with other CSO N4Ps for services not provided by Mission.

• Currently being researched with Group Homes and ER.

• Need replacement strategy for Social Research.

• All PEAK bodies now have Mission Representation

• Yes

• Work in Progress. Need additional resources in Retail to commence training.

• Discussions with DHHS with respect to self funding Individual Support Packages.

Continued ...

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TREND09/10

TREND10/11

COMMENTS

3. To work in partnership with the local community and other CSO/N4Ps for the provision of services with respect to advocacy, mentoring, accommodation, retail training, financial and emotional support and guidance.

> Form and Interactive Communication Strategy.

> Community Presence.

> Critical Mass.

• Degree and level that grant funding for HCM programs can be secured.

• Research and Stakeholder feedback on HCM Services.

• Level of co-operation with Regulators and Politicians Letters of understanding from community organisations and professional groups to utilise HCM services e.g. Bowen Road Primary.

• Number of partnership agreements to give rise to critical mass in all activities and services.

• Incremental improvement, Staff changes and budget have impacted. Much more focus on grants required.

• Substantial improvement, over past 6 months.

• Incremental improvement, Staff changes and budget have impacted.

• Being actively researched with IFSS, ER and Vulnerable Groups seeing improvement.

4. To implement a service orientated approach in meeting the needs of the Mission’s clients so as to empower them with a sense of dignity, purpose and self reliance.

> Business Model based on Case Management.

> ICT Infrastructure.

> Staffing/Volunteers.

• Business planning that covers all HCM activities & incorporates ‘whole of organisation’ considerations and addresses core values.

• Integrated infrastructure involving phone, IT systems and data base management.

• Seamless case management approach across all HCM Business Units.

• Organisational structure which supports integrated service delivery.

• Yes

• Yes

• New EMT & OMT working well.

Continued ...

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TREND09/10

TREND10/11

COMMENTS

5. To achieve consistent revenues (donations, grants bequests, investments) to enable Mission to operate on a sustainable basis over rolling 4 year periods.

> Recurrent Income.

> Investment Returns.

> Staffing.

• Balanced budget after taking into account all capital and recurrent expenditure.

• Performance of investments;

- property - CPI + 4.5% - other CPI + 3.5%

• Business Unit budgets each to have funding strategy as part of annual business plan.

• Whilst a balanced budget was not achieved during 2010/11, substantial progress was made in this area with a major external review of the Mission’s financial operations and appropriate allocation of capital income and bequests.

• Substantial progress was made on maximising property utilisation during 2010/11.

• Progress made but more work to be done on developing critical mass.

6. To achieve financial independence through prudent financial management and appropriate balance between government and philanthropic sources of funding.

> Trust/Bequest Funding.

> Property Investment Income.

> Non Property Investment Income.

> Prudent Cash Reserves and Provisions.

• Balanced between Govt & philanthropic funding as a % e.g.

- 60% Govt & - 40% Philanthropic

• Retail net profit as a % e.g.

- 40% over 4 years

• Diversified net revenue streams as a %.

- Investments 10% - Fund Raising 10%- Retail 5%- Trusts/Bequests 15%- Government Grants 60%

• Substantial bequest and capital inflows from a land sale has markedly improved the Missions financial and liquidity position.

• Major activity for 2010/11 with strong growth in capital bequest and fundraising. New Retail outlet being researched (Claremont).

• Retail now established on commercial footing with profit expectations built into budget.

• Major activity for 2010/11 – Developed Proposed Group Home Development on Haig St site to Building Permit Stage.

• Major achievements of past 12 months.

Continued ...

PART ONETHE BOARD

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TREND09/10

TREND10/11

COMMENTS

7. To achieve a critical mass of clients in all activities to justify the continuation of client services in each of those activities.

> Clients. • Welfare (Active) 100 pw.

• Group Homes - 32 residents in 6 - 8 houses.

• Family Services - 25 residential clients in SAAP accommodation.

• Residential/Affordable Housing

- 30 residents.

• Demand for Mission assistance increasing.

• Whilst Haig Street Group Home proposal did not proceed, work commenced on conversion of property to residential accommodation.

• Restructure of services in consultation with Housing Tasmania Affordable Housing progress.

• Business case prepared with respect to Common Ground Tasmania.

8. To achieve exemplary corporate governance including risk management.

> Quality Accreditation.

> Contract Compliance.

> Financial Reporting.

> Governance Manuals.

• Accredited before 2012 by an approved QA assessment organisation.

• All Government/Bequest requirements met on time and within standards.

• Compliance with Governing Rules.

• Unqualified audit certificate.

• Completed Future Directions Statement and supporting strategies.

• Risk Management Strategy/Fraud Theft.

• On target – Achieved provisional accreditation subject to period of grace.

• Yes.

• Yes – Revision of Constitution now sees compliance of administration with governing rules.

• Yes – Revised Inventory Management and Security system.

• Incremental improvement.

• Preparation of Risk Management Strategy well progressed.

Continued ...

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TREND09/10

TREND10/11

COMMENTS

9. To have empowered, professional and competent staff who meet the needs of the Mission and particularly its clients and stakeholders.

> Staffing.

> Volunteers.

> Training & Development.

> Leadership.

• All HCM activities with respect to staff and volunteers documented with supporting PD’s.

• Staff have performance reviews and personal development plans including client and stakeholder participation.

• Skills and work experience to be relevant to client needs.

• Volunteer Recruitment, Training and Management.

• Knowledge, skills and qualifications of staff relevant to position.

• Appropriate and active leadership working on “Whole of Mission” basis.

• Achieved.

• Completed.

• Achieved within whole of FaCSS – a major achievement.

• Creation of special Volunteer Coordinator position.

• Active use of Apprentice and Trainee schemes.

• EMT and OMT established and working. Some refinement required.

PART ONETHE BOARD

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CORPORATE INTENT 2011/12

In line with its Rules of Association (Rule 13) and its Governance Policy, the HCM Board of Management is required to articulate in its Annual Report, a statement on Corporate Intent relating to the next reporting year being the period 1 July 2011 through to June 30, 2012. In this regard the HCM Board has identified the following major issues as impacting on its operating environment for the year ahead.

Big Property Development/Capital Issues • Development of Haig St as Residential Complex for families with disabilities (1 new residence and conversion of Church/Community Centre to residence). • Development of Moonah Warehouse site to include FaCSS, Retail Services and Administration centre.• Opening of another Retail outlet (possibly Sorell).

New HCM Corporate Initiatives

• Re-engineering of Corporate Operations activities including:-- Whole of Mission Marketing Strategy;- Review of financial operations and business services delivery- Corporate Partnerships and Sponsorships (eg Motors Foundation); - Website development and online services.

• FaCSS partnerships with:-- Development of new Family Support Services in conjunction with DHHS and Housing Innovation Unit;- Common Ground Board Tasmania (Housing); and- DHHS; Baptcare & Mission Australia for IFSS expansion.

• RDA/TCF Grant Applications for:-- Moonah Warehouse; and- Haig Street development.

HCM Corporate Governance • Financial education of Staff with respect to:-

- Budget to Actuals; and- Group Home Financials.

• Finalisation of provisional QA Accreditation.• Staff development to appropriate levels.• Risk Management and Fraud/Theft Prevention.

Regulatory Environment • Introduction of Unit Pricing into all DHHS programs sometime during 2011/12.• Service level review by DHHS – Multiple funding sources for One Service/Activity.

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HOBART CITY MISSION FINANCE, INVESTMENT AND PROPERTY MANAGEMENT COMMITTEE

The HCM Board of Management has established a Finance, Investment and Property Management Committee with the objective to make positive contributions to the investment and property management decisions.

Over the past 12 months the HCM Board, actively assisted by the Finance, Investment and Property Management Committee, has made some major decisions directed towards providing the Mission with a secure and sustainable financial future. These decisions have included:-

• Working in partnership with Fairbrother Pty Ltd, Hobart City Council and the State Housing Innovation Unit in developing a proposed $10m Affordable Housing Complex entitled ‘A Place to Call Home’ on vacant land bordered by Goulburn, Barrack and Liverpool Streets. This project reached conclusion in January 2011 with the sale of the vacant land and the commencement of the project. The proceeds of the sale has enabled the Mission to make financial provisions against liabilities and replacement of capital funds.

• Renovation of Mission properties in Barrack Street, Hobart to address essential Occupational Health & Safety issues and to achieve better utilisation of those properties from both a Mission program support or property return potential;

• Expansion of the Mission’s retail and warehouse activities at Moonah and Barrack Street and to open a new retail outlet at Claremont;

• Implementation of active cash flow management and investment strategy, including a detailed policy on investment of funds not immediately required for funding of the Mission’s programs.

A complex review of the Missions financial operations and reporting needs. The review was completed by an external consultant, Mrs Jo Macgill resulting in a major revamp of the Missions:-

• inventory management system;

• chart of accounts and business processes; and

• organisational structure engaged in internal business service activities.

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PART ONETHE BOARD

page 20.

HOBART CITY MISSION COMMUNICATIONS, INFRASTRUCTURE AND GOVERNANCE COMMITTEE

The HCM Board of Management also established, in March 2008, a Communications, Infrastructure and Governance (CIG) Committee. The objective of this Committee is to ensure that Mission operations {including communications/marketing, Information Communication and Technology (ICT) infrastructure and governance} are adequately monitored and directed, thereby increasing the Board’s capacity for strategic planning and decision making.

Over the past 12 months, the HCM Board, actively assisted by the CIG Committee, has signed off or agreed in principle to some significant policy and strategic issues. These have included:-

• Continuing to implement the Mission’s “Future Directions Statement 2009-2013” which:-- Defines the niche market place in which the Mission can operate effectively and with distinction;- Identifies what the Mission needs to have or do in order to be successful;- Builds a distinctive culture by which the Mission will be readily perceived by stakeholders, staff and clients and thereby give rise to improved performance and loyalty;- Establishes appropriate business planning, management, ICT infrastructure and governance frameworks which allows the Mission’s performance to be measured – see Corporate Plan Section.

• Progressing the formal and critical Quality Assurance (QA) accreditation process through the regulatory recognised provider – Quality Management Services Ltd (QMS). As at 30 June 2011, HCM had been advised that provisional QA accreditation had been achieved subject to a period of grace to complete in full a number of criteria.• Completion in time for commencement on 1st July 2011, of detailed Business Plans for each of the Mission’s activities and programs. These Business Plans cover operational activities, balanced budgeting and business initiatives for the coming financial year.• Being selected to trial the Commonwealth funded initiative relating to case management of vulnerable groups and families. This trial was deemed a great success by the Minister who has extended the program for a further 3 years.

The two major issues that needed to be addressed by the Board and the CIG Committee during the financial year related to the need to transform the Mission’s operations on to a more efficient, effective and economically sustainable basis. In the months leading up to the end of the financial year both the Board and the CIG Committee worked very hard on this exercise which included:-

• Making representations to both DHHS and the Minister for the purpose of ensuring that activities undertaken by the Mission on behalf of the Government were appropriately and adequately funded. This matter was partly resolved by 30th June with the expectations that further funding initiative would commence in the coming financial year.• A major efficiency drive across the Whole of Mission in an effort to achieve a sustainable financial footing. Unfortunately this resulted in the abolition of some uneconomic services and some staffing reductions.

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MANAGEMENT DIAGNOSTIC – DOES THE CORPORATE PLAN (FUTURE DIRECTIONS STATEMENT) 2009-2013 MEET HCM NEEDS?

Organisational Issues Is it in place – 30/6/11• The HCM vision and corporate values statement. ✓ • The HCM organisational and decision making structures. ✓ • The HCM client and stakeholder relationship and ✓

communication strategy.• A financial and investment strategy for a sustainable and ✓

viable HCM future.• HCM key performance indicators and critical ✓

success factors, both with measurement systems.• Policies on social responsibility. (being developed)

Human Resource Issues• Position descriptions. ✓

• Education, training and leadership development. ✓

• Employee Collective Agreement and HR Manual. ✓

• Strategies for staff recruitment and retention. ✓

• Performance review process. ✓

• Retention of intellectual capital and corporate history ✓

Workflow and Process Issues• Process mapping for key work processes and workflows. (well in progress)• Whole of organisation information flows. ✓

• Communication strategy, systems and channels. ✓

• Technology systems strategy. ✓

Culture Alignment• Elevates positive emotions of hope, confidence and ✓

motivation.• Increases creativity, better decision making and collective ✓ capacity.• Reduces negative impacts and makes irrelevant the ✓

residual of a negative past.• Empowers all staff, clients and stakeholders to take ✓

responsibility for the future rather than just follow directions.

PART ONETHE BOARD

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HOBART CITY MISSION ORGANISATIONAL STRUCTURE AND OPERATIONAL REPORTS

RAMBLINGS FROM THE CEO’S DESK

My role as CEO is to manage the day-to-day operations of the Mission and to implement the strategic framework, as determined by the Board. As CEO I have responsibility for working closely with the Board to develop and implement strategies, policies and decisions in order to meet key challenges. As the CEO, I attend all meetings of the Board and Committees of the Board and represent the HCM Board within the Organisational Structure.

After 3 ½ years of a 5 year contract, is it all going to plan? My plan at the beginning was:-

• Year One - Get to know and understand the Mission and the Community sector generally; review the Corporate Governance from top to bottom; and undertake the research to define the Mission’s niche market position and present a draft Corporate Plan (Future Directions Statement) to the Board. Was this done/achieved? - Yes

• Year Two – Once the Board adopted its Corporate Plan, to transition the HCM Organisation with an eye on the future; to find the right people to act as custodians of the Mission’s future; and to commence the implementation of the Mission’s push to be an efficient, effective and economically sustainable organisation. Was this done/achieved? - Yes

• Years Three and Four – The thinking and designing is over; it’s time to drive the organisation toward the achievement of its Corporate Plan. Is this happening? - Yes and particularly pleasing in that it is all progressing to schedule.

• Year Five – To review and polish off the work done and to attend to issues still unfinished; most importantly to start gathering the research for the next Corporate Plan.

Year three has finished and I am proud of what has been achieved – just a few organisational design issues still to be attended to. Speaking of organisational design, the current HCM Organisational Structure is as follows:-

PART TWO THE ORGANISATION

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HCM ORGANISATIONAL CHART(Effective August 2011)

Good and Faithful ServantsThe financial statements contained in this report will represent the final work of Don Camm who will cease employment with the Mission on 27th October 2011. Don was appointed Treasurer (Financial Director) of the Mission on 10 th April 2006 and engaged for 15 hours a week. Since then the role of Treasurer has grown substantially in responsibility, complexity and time required and now has reached the stage where a full-time management accountant is justified. During the almost six years of change and growth in the professional accounting role at the Mission, Don has displayed admirable dedication and resourcefulness. His departure will be accompanied by a loss of corporate history and industry knowledge.

Appeals/Events/Grants - Marketing & PR -

Stakeholder Management & Communication -

BOARD OF MANAGEMENT

STAFFING PAIDEmploy

PAID FTE’s

VOLFTE’s

CEOFamily & Community Support ServicesCorporate OperationsRetail Business Unit

134126

1.0029.709.706.00

0.01.00.9

16.6

TOTALS 53 46.40 20.5

Communications, Infrastructure & Governance Committee

Integrated Family Support Services- Child Welfare- Liaison with DHHS- Liaison with Gateway Services

Integrated Community Support Services

- SAAP- Community Crisis Services- Emergency Relief- Identified Vulnerable Groups- Community Housing/Living

Trans Housing/Mt View- Industry Liaison- Clinical and Professional

Counselling- Financial Guidance

- Bligh- Mercer- Atherton- Highfield

- Warehouse- Driver- Maintenance- Stores

Hobart (2) MoonahEastern Shore GoodwoodHuonvilleClaremont

- Volunteer Recruitment/ Training & Deployment

Finance, Investment & PropertyManagement Committee

CEO(Garry Fletcher)

Assistant Secretary to Board/CEO(Mandy Menzie) - 0.4 FTE

RetailManager - Andrew Greenham

Volunteer Management Coordinator - Sheralyn Jackson

Warehouse Supervisor - Peter GilbertSorting Room Supervisor - Loraine WarringtonWarrane Op Shop Supervisor - Sonny Rugari

Driver/Storeman - David SladeProperty Management - Vacant - 0.2 FTE

(Paul Fletcher - Volunteer)

HCM Corporate OperationsManager - Rebecca Abela

Integrated Family Support Services/ Community Support ServicesCoordinator - Michelle Folder

Senior Practitioner -Rebecca Woolford - 0.8 FTE

Case Manager IFSS - Ben NicolsonCase Manager IFSS - Caroline Verth

Case Manager IFSS - Erin SmithCase Manager IVG - Fiona MooreCase Manager CSS - Mike Bryant

Case Manager CSS - Amanda Savage

Family and Community Support ServicesManager - Annette Clark

Consultant - David Lewis - 0.4Administration Officer - Mary Williams

Group HomesCoordinator - Janet Robbins

Relieving Officer - David EldridgeDisability Service Providers - 21 staff, 17.5 FTE

Pastoral & Mission CompliancePastoral & Governance - Luke Campton

Chaplain, Claremont College - Carol Tolson - 0.6 FTE

Chaplain, Oatlands - Maria Orchard - 0.4 FTE

Professional Services GroupMarketing & Communication Consultant -

Sarah Miller - 0.8 FTEGraphic Designer - Vacant - 0.1 FTE

(Alix Morse - Contractor)

Accounts -Cashier -

Reception -

Business Services TeamSenior Management Accountant - Jenny SloaneChief Financial Officer - Don Camm - 0.6 FTE

Executive Officer - Sue Stevens - 0.8 FTEAdministration Officer - Gemma Reid - 0.6 FTE

Administration Officer - Tracey ArmstrongAdministration Officer - Vince Oakford - 0.5 FTESenior Accounts Clerk - Mandy Menzie - 0.6 FTE

QA -O H & S -

Regulatory Compliance - Mission Membership Registrar -

Research & Mission Governance -

Chaplains Pastoral Care Service -

Training & Education -Bequest/Trust Funding -

Schools, Camps, Prison, Dog Home & Prayer Meetings

<

All positions are 1 FTE unless otherwise stated

VisionThrough the provision of physical, clinical, financial, social and residential support:

• improve the capacity of people with disabilities to participate fully in community life with a sense of dignity, purpose and independence (Group Homes);• improve the capacity of those in urgent need or crisis to cope with the day-to-day challenges of life in the community with a sense of dignity, purpose and hope (Community Support Services);• provide families with support and counselling, within a managed case plan designed to promote children’s rights and to ensure their safety and development (IFSS).

Business ObjectivesThe business objectives of the Family and Community Support Services Unit are to:

• be the first point of call for those in the community with urgent living needs or in crisis;• be the preferred provider for Family Support Services, clinical or professional counselling, financial and social guidance and advocacy to members in the community in need of those support mechanisms;• be always available to provide emergency relief, family counselling and residential support with an appropriate degree of compassion;• be an active partner with the DHHS Gateway and/or other Community/Government Agencies in the delivery of Family and Community Support Programs;• be the facilitator of a supportive living environment for residents with disabilities to enable full and active participation in community life.

The Hobart City Mission Family and Community Support Service in total operate under 7 contracts with DHHS, Gateway and FaHCSIA. There is 1 Executive Manager, 2 Coordinators, 1 Senior Practitioner, 1 Relieving Officer, 28 Case Managers/Support Workers, two Volunteers and currently supporting 2 University students undergoing their placements for Social Work.

The Hobart City Mission utilises a case management approach in the delivery of all its FaCSS services as shown in the following diagram.

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FAMILY AND COMMUNITY SUPPORT SERVICES (FaCSS)

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(Mountain View Complex)

Hobart City Mission’s South Hobart complex (referred to as Mountain View by residents), supports 10 single men over the age of 55 who have been identified as being homeless or at risk of homelessness. A volunteer support worker lives on site with professional case management available 1 day per week, if it is identified that a resident requires more intensive case management additional time and support is available. The units are all self-contained, 3 units are bedsits and 7 units are one bedroom units. The complex supports a large communal shed which has been fitted out with a pool table and other activities. The residents are encouraged to interact and spend quality time together to form a supportive family environment. The onsite volunteer along with the residents cook a meal together once a week, funded by Hobart City Mission, the complex has a shared common room equipped with a kitchen, dining room, bathroom facilities and a large laundry room; this allows the residents to have group meetings to discuss issues or concerns that may be occurring.

(Group Homes)

Hobart City Mission is known as a specialist provider of services in the disability field and has a long history of working with people who have a disability through its 4 group homes. Hobart City Mission initially designed its Group Homes program in conjunction with Disability Services. This program has been operating since 1990 and has resulted in many positive outcomes for the residents. Our existing Group Homes supported accommodation service operated by Hobart City Mission provides a 24 hour supported accommodation in a safe and comfortable environment with a home-like atmosphere.

Knowledge ofPotential

EntitlementsResidentialHousing

DisabilityMental HealthManagement

ER / FS & AS

OutreachFriends

FinancialLiteracy

CounsellingAdvocacy

Life Skills /Employment

Client ProfileCase

Management

Contractbetween HCM

& Client

Circle ofDespair

Market SolutionCSO’s with critical

mass. Easy regulated & quality outcomes.

SAAP; ER; Family Support & AS Disability Services; HCM Funding Chaplaincy;

Philanthropy; Trusts/Bequests

Funding

Emerging Government trend of being funded &

regulated

CLIENT


(Supported Accommodation)

Hobart City Mission Transitional/Community Homes program has been running since 2001. The homes are situated in a variety of suburbs in southern Tasmanian and are for women and children escaping family violence or who have been identified as homeless or at risk of homelessness transitioning out of Shelters. The existing Transitional/Community supported accommodation service operated by Hobart City Mission provides low to high level case management support between 8.30am – 5pm Monday to Friday with afterhours assistance available if required. The homes provide a safe and comfortable environment for the families who have experienced high levels of trauma with highly qualified staff to support every member of the household and if necessary significant others to achieve their maximum potential. Hobart City Mission Transitional/Community support staff work with individuals and or families to adjust to a new life while going through the trauma of court appearances due to the violence perpetrated against them or their children, assist with finding lawyers if necessary, and generally starting their lives over from scratch as many women escaping a violent relationships and or who are homeless have nothing but what they can carry in a small bag. Over the past 12 months the program has supported 17 families closed 4 and the team is currently supporting 13 families.

(IFSS)

The Hobart City Mission Integrated Family Support Service (IFSS) program is a family support service for eligible families with children 0 – 18yrs of age referred from Gateway. Hobart City Mission IFSS workers provide vulnerable children, young people and their families with a tailored approach to meeting individual and family needs. IFSS workers can provide a holistic range of case management services for children, young people and their families. This includes; providing information, counselling, advocacy, supported referrals to appropriate services, facilitation of family meetings and skill development. Hobart City Mission IFSS workers have identified that many referred families are struggling to keep and /or find stable, affordable accommodation. The team work closely with Housing Tasmania and if required private rental agents to either maintain their current accommodation and or find accommodation. Hobart City Mission provides vulnerable children and families with tailored individual support, promoting the wellbeing and safety of children and young people. The program is an outreach based service that works with families to identify needs and aims to strengthen relationships, develop skills and facilitates referrals to appropriate services. Hobart City Mission has 3.4 workers who operate throughout Southern Tasmania who are committed to the program. Over the past 12 months the team has supported 66 families with 152 children; currently the team is supporting 34 families with 66 kids.

(Emergency Relief)

Hobart City Mission has been providing Emergency Relief for families/singles to overcome short term crisis situations for 160 years. Through financial and /or material aid, assistance can be provided for food, transport, medication, clothing, bedding and essential services such as telecommunications and electricity (Aurora). Hobart City Mission Emergency Relief staff have identified that due to the increase in rental costs and basic living items families are either making the decision to pay their rent or purchase food and /or essential services. This situation is not only unacceptable to Hobart CityMission but it should be to all Tasmanians, the assistance through Emergency Relief allows families and individuals the opportunity to not have to make such decisions. Emergency relief has been the core

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program of the Hobart City Mission since its inception. The Emergency Relief Team for this financial year assisted 2,747 families/individuals with 669 new clients requiring assistance. It is important to note that 1,615 were receiving Centerlink payments.The remainder were receiving either a wage or other. This demonstrates that the rise in the cost of living is affecting all levels of income.

(Identified Vulnerable Groups)

Hobart City Mission has a program called “Identified Vulnerable Groups” which is a case management outcome based program that assists individuals and/ or families who require more concentrated case management assistance. The program assisted 99 clients, with 381 case work sessions. The presenting issues were:

Financial Literacy (18 Clients); Housing (21 Clients); Mental Health (15 Clients);Child Support (9 Clients); Disability (15 Clients); Gambling (3 Clients); Homelessness (5 Clients);Alcohol/Drug (9 Clients); Family Violence (6 Clients); Government Payments (9 Clients);Utilities (28 Clients); Credit Debt (71 Clients);Inadequate Finances (25 Clients); General Budgeting (55 Clients); and Changed Personal Circumstances (31 Clients).

(Personal and Family Counselling)

Hobart City Mission’s Family and Community Support Service Unit also encompasses the Personal and Family Counselling program. This service provides face to face counselling, either delivered at one of our offices and or in the clients’ home. The program also aims to establish and maintain ongoing relationships with key referral agencies. Personal and Family Counselling, Emergency Relief, Housing, IFFS and Vulnerable Persons use a holistic approach to clients. Over the past 12 months Hobart City Mission Personal and Family Counselling have assisted 57 clients, with a current case load of 15.

Annette ClarkFaCSS Manager


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Vision

To improve the capacity of the Mission to:

• Fund charitable and welfare activities; and• To provide, through the use of donated goods, access by the needy in the community to clothing and other living goods.

Business Objectives

First point of call• ensure that HCM is the first point of call for customers enquiring about/seeking recycled goods;• remain competitively priced with similarly not-for-profit stores

Higher Trading Profit Goals• cost plus 20% within 1 year• open additional retail outlets

Volunteers and Employment Training Opportunities• volunteer induction program• cash register training• EFTPOS training for stores• money handling and till balance training• inventory training (including stock-take)• merchandise training• customer service and telephone training• establish an in-house ‘work for the dole’ program in partnership with Max Employment and Works Well Training (offering Certificate III in Retail)• Retail personnel to receive Occupational Health & Safety training

Partner-Welfare and Community Services and Other Community Service Organisation’s• Retail contribution to welfare budget aim 40% by year 3• Retail supply items to HCM welfare clients• Retail able to supply items to HCM Transitional Housing• Excess clothing to be sent to Vincent Industries and paid per kilogram of weight• Member of NACRO (National Association of Charitable and Recycling Organisation)

The last 12 months was a very busy year for the Retail Unit, with the opening of a new store at Claremont and the renovation of the store at Warrane.

Total turnover for all the retail stores was $421,926.

Breakdown by Store:-

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RETAIL

STORETURN0VER

2008/09TURN0VER

2009/10TURN0VER

2010/11

Moonah Clothing & Furniture Stores $132,626 $158,140 $217,955

Warrane $62,116 $83,832 $86,923

Goodwood $15,499 $27,570 $28,314

Partridge Nest $40,659 $34,408 $32,598

Barrack Cottage $12,989 $15,212 $14,285

Huonville (Began trading January 2010) $22,237 $38,332

Claremont (Began trading August 2011) $1,696

Rag Sales $1,193 $1,793 $1,823

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Retail now operates eight retail stores, a sorting warehouse and two pickup/delivery vehicles and the volunteer program. Retail staffing consists of six full time, one part time, and over ninety fantastic unpaid volunteers. Once again, retail is indebted to our army of dedicated volunteers and we thank them for generously giving up their time to help the Mission.

This past 12 months has seen:• The renovation of the Warrane retail store;• Proper air-conditioning in the way of heat pumps installed in our Warrane, Goodwood and Partridge Nest Stores;• A store supervisor employed full time for the Furniture Warehouse;• Our retail trainee (Sonny) finish his traineeship, and is now full time supervisor at Warrane;• The volunteer program was transferred to the retail business unit, with Sheralyn as the volunteer co-ordinator;• Sheralyn (volunteer co-ordinator) with the guidance of Volunteer Tas, has undertaken a Volunteer Management Review of our volunteer program. This is an ongoing, massive task, but the rewards are that our program is now being recognised as best practice.• A successful Fair Day - organised by the volunteers - was held at our Moonah site. This has now become a regular event on the calendar;• Hobart City Mission Retail is now on Facebook, with one of our volunteers – Dennis - photographing items and maintaining the site.• The building of the Common Ground units around our Barrack St shops has affected foot traffic, and hence retail sales. Once these units are tenanted, I am expecting a lift in sales for these stores.

Donations have continued to come into the Mission, but because of our lack of self promotion, many people still do not know Hobart City Mission exists. Vinnie’s and Salvos are swamping us as first point of call for donations and shopping.

Andrew GreenhamRetail Manager


Vision

To enable the Hobart City Mission Inc. to achieve its Corporate Vision on improving the life of those in need or marginalised through the quality management of the Mission’s:

• Stakeholders and pastoral relationships;• Business development and philanthropic activities; and• Financial and administrative operations, infrastructure and resources.

Business Objectives

The business objectives of the Corporate Operations Business Unit are to:• Manage the Mission’s business, financial and communications infrastructure in an efficient and economic manner (Business Services Team); • Undertake the financial administration of Mission operations and provide such management reports as necessary to support the Mission’s budget and cash flow requirements (Business Services Team);• Coordinate the philanthropic activities of the Mission through quality relationship management of stakeholders and the conduct of events and appeals. (Professional Services Group);• Provide pastoral care to those in need or marginalised irrespective of denomination, race or social status (Pastoral & Mission Compliance);• Coordinate the Governance, Quality Assurance and Regulatory compliance activities across the Mission including grants (Pastoral & Mission Compliance).

(Overview)

The Corporate Operations Business Unit is the “nuts and bolts” of the Hobart City Mission with responsibility for supporting the Mission through the quality management of its infrastructure. In a modern business environment infrastructure must encompass a multitude of crucial activities such as:-

• provision and support of seamless information and communication technology (ICT) services across the Mission’s 13 sites;management of the Mission’s physical and financial assets in an efficient, economic and productive manner;• coordination of the delivery of operational services on a “Whole of Mission” approach;• coordination of governance and quality accreditation processors within the Mission as well as with funding authorities and external stakeholders;• provision of executive support services to the Board as well as a full suite of HR and OH & S responsibilities; and• responsibility for driving the Mission’s philanthropic activities including events, appeals and relationship management with stakeholders and donors.

(ICT Infrastructure and Asset Management)

Over the past 2 years, the Mission has invested heavily in upgrading its infrastructure to a satisfactory standard. This has involved:-

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CORPORATE OPERATIONS

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• renovations of all the Mission’s property holdings either to satisfy OH & S concerns and standards or to improve the utilisation of properties in terms of rental income; and• ensuring that the Mission improved its productivity whilst at the same time minimising its management costs through the appropriate application of information and communication technology.

This investment in infrastructure was completed in 2010/11 financial year with the outcome that the Mission staff and volunteers are supported by an appropriate work environment and technologies.

(Fundraising & Philanthropic Activities)

It has been a hard year for Fund Raising with a gross return of $174,028 being generated from a range of events, functions and appeals. The major contributions were:

Also during the year, the Mission received bequests and major sponsorship contributions from a number of people and organisations. Where bequests are more than $10,000, the funds are set aside, invested with the investment returns, plus some of the capital directed towards Mission programs identified, having regard to the instructions/wishes of the deceased person’s estate. This year the following Bequests/Major Sponsorships were received;

EVENT/FUNCTION GROSS INCOME

Winter Appeal $40,733

Christmas Appeal $58,768

Optomeyes Art Exhibition 2010 $26,178

Music for the Mission 2010 $40,299

Other Fundraising $8,050

SOURCE OF BEQUEST/SPONSORSHIP GROSS AMOUNT PROGRAM

Charlotte Peterswald $3,500 Music for the Mission

Optomeyes $3,500 Optomeyes Art Exhibition

Glenorchy Uniting Church $2,400 Claremont College Chaplaincy

David Walch $9,000 Music for the Mission

Allport Bequest $10,966 General Mission Support

Maxwell K Tims Bequest $505,415 Mission Capital Fund

Ruby McDougall Bequest $32,255 Mission Capital Fund

Doreen Batey Bequest $3,836 Mission Capital Fund

Glasser & Parker $6,000 Donation

J Burleigh $4,000 Donation

Isabel & John Filbertson Trust $7,500 Donation

ABC Giving Tree $18,100 Christmas Appeal Donation

Jane M Walker $7,000 Winter Appeal Donation

Motors Foundation/Motors Group $6,088 Winter Appeal Donation

R & S Morse $4,000 Winter Appeal Donation


The Hobart City Mission Inc. wishes to thank all our supporters who contribute in so many ways through gifts, donations, bequests, in-kind support, sponsorship, time and volunteering. Thank you to each and every one of you for ensuring the continuing success of the Mission.

(Governance and Quality Assurance)

The Hobart City Mission is committed to continuous quality improvement in all of its business activities. In 2008, the Hobart City Mission began an accreditation journey with a national group called Quality Services Management (QMS). Managers and operational staff undertook a three day training course which outlined “Quality Journal” creation, the Quality Improvement Council (QIC) Standards and the process of integrating Continuous Quality Improvement (CQI) into service delivery and planning.

The review cycle undertaken by the Hobart City Mission leading to accreditation has had the following components:-

• Internal Review – completion of a Quality Journal using a cross-disciplinary collaborative process of evidence gathering.• External Review – completion of a review by external reviewers under the auspice of one of QIC’s licensed providers.• Feedback – feedback to be provided by external reviewing party, with the opportunity for discussion of the external review findings; and• Taking Action – developing, implementing and reporting of progress against a quality plan arising from the external review findings.

Throughout the accreditation process the Hobart City Mission achieved a high measure of stakeholder engagement with staff and clients involved in the Quality Journal creation and subsequent CQI activity. The Hobart City Mission was included in the QIC 2010 Annual Report as an example of innovative stakeholder engagement. The Mission held a two day public ‘visioning’ summit, and engaged staff in regular forums to explain the Quality Accreditation process.

As the result of an external review undertaken by QMS in May 2011, the Mission was awarded provisional QA accreditation subject to the completion of a number of criteria during a “Period of Grace”.

(Financial Management and Reporting)

During the course of the 2010/11 financial year, the HCM Board of Management initiated a review of the Mission’s financial operations. As a consequence an independent consultant was contracted to undertake an external review of the financial and reporting arrangements of the organisation. This review by the Board encompassed an evaluation of the finance policies, practices and procedures of the organisation with the primary object of determining the needs of the business unit were being met by the current software systems.

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The objectives of this review were as follows:-• Ensure the production of timely and accurate budget versus actual reporting• Enable timely and accurate cash flow reporting• Ensure the production of timely and accurate financial information that facilitates management and the Board in making informed decisions regarding HCM operations and processes.• Assess the ability of the current accounting package to enable these objectives to be met. • Identify areas and processes where improvements could be made to increase efficiency and/or mitigate any possible risks.• Provide recommendations for either the retention of the current accounting package or the installation of a new software package, including general recommendations for improvements in operations to increase efficiency and accuracy of information.

In early calendar 2011, the Board received and adopted the Consultants report which had concluded that:-

• MYOB Accounting System – the system was currently underutilised and training would assist in the adaption of additional functionality to the current administration processes employed. Training in MYOB is urgently required. • Documentation – in order to clarify processes and ensure appropriate succession planning risk management, documentation of procedures must be undertaken.• Resourcing – resourcing levels must be reviewed and the optimal organisational structure must be established. Position descriptions must be established for all corporate operations roles. • Retail stores review – a more detailed review into the retail store operation must be undertaken. This review must address sales pricing, stock management, and resourcing.

Implementation of all recommendations of the Consultant with respect to the above conclusions immediately commenced but is not expected to be finalised until December 2011.

Rebecca AbelaCorporate Operations Manager


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THE HCM FINANCIAL REPORTS

STATEMENT BY OFFICERS

In the opinion of The Hobart City Mission Inc. (HCM) Board of Management, as the body corporate responsible for the administration of the Mission established, constituted and funded pursuant to the Associations Incorporation Act 1964:-

• The accompanying financial statements of the Mission are a special purpose financial report properly drawn up so as to present fairly the financial position of the Mission as at 30 June 2011 and the results of its operations for the year ending on that date in accordance with the Associations Incorporation Act 1964, Australian Accounting Standards, where applicable and other mandatory professional requirements.• The Mission has been operating in accordance with the provisions of the Rules of Association and Constitution of the Mission as approved pursuant to the Associations Incorporation Act 1964.

HCM is funded from a number of sources including government grants, subsidies, contributions, donations and investment income. Other sources of income include resident fees, client fees, fundraising appeals, trusts and bequests which are also vital to the work of the Mission. HCM supports various programs that receive government grants by way of extra contributions as well as self funding a number of important pilot programs.

HCM appreciates the generous financial and in-kind support of government, philanthropic trusts, community groups, the corporate sector, churches and individuals which make it possible to run and support many services and programs. However it should be noted that as at the 30th June 2011, the HCM Group Homes activities were operating in a financial deficit position to a material amount. Whilst the HCM Board had commenced the proper process for seeking an increase in its allocated funding from the Department of Health and Human Services in November 2009, that process was ongoing throughout the whole of the 2010-11 financial year and still not completed to HCM’s satisfaction at year’s end. As at the time of the preparation of this Statement by Officers, the Mission and the Department were working constructively and positively together on the introduction of Unit Pricing into the Mission’s Group Homes funding arrangements phased in over a three year period.

The Board and Management of HCM continue to ensure that long term investment strategies, planning and budgeting processes are in place to ensure the ongoing viability of the many services it provides which enable HCM to meet its objectives. The Board and Management regularly review programs and services to ensure that people in need receive the best support possible. HCM supporters can be confident that the resources available are properly and efficiently managed.

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Don Camm CHIEF FINANCIAL OFFICER 17th October 2011

Garry FletcherCEO AND PUBLIC OFFICER17th October 2011

Barry NeilsenACTING PRESIDENT17th October 2011

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PART THREEPART THREE THE FINANCIALS

THE HOBART CITY MISSION INC. STATEMENT OF COMPREHENSIVE INCOME

FOR YEAR ENDED 30 JUNE 2011

Notes 2011 2010

$ $

INCOME

Grants 1q 2,550,327 2,230,373

Retail Sales 400,452 327,209

Rent of Mission Properties & Welfare Housing 173,837 168,852

Fundraising not set aside for Specific Purposes 147,677 172,180

Legacies Recurrent and Non-Recurrent not set aside for Specific Purposes

21,346 22,603

Trust Fund Allocations 111,820 99,002

Mission Mate & General Donations 58,555 49,706

Interest Received on Specific Purpose & all Other Investments

55,658 37,240

Other 142,271 85,064

TOTAL INCOME 3,661,944 3,192,230

EXPENDITURE

Staffing Costs 2,890,964 2,624,995

Motor Vehicle Costs (including Depreciation) 101,994 123,843

Property Costs 95,788 99,023

Rents - Retail Outlets & Welfare Housing 137,524 115,307

Fundraising Outlays 58,940 72,834

Other - Operating & Welfare Costs 564,464 584,240

TOTAL EXPENDITURE 3,849,674 3,620,241

Net Surplus/(-)Deficit 1q -187,730 -428,011

NON OPERATING ITEMS

Capital Grant - NILS re Eastern Shore Office 1q 10,000 0

Capital Grant - TCF re Moonah redevelopment 0 92,470

Profit on Sale of Land - Barrack/Goulburn St 2a 271,978 0

Trust Funds Drawdown for Capital Works 7 1,012,437 0

TOTAL NON OPERATING ITEMS 1,294,415 92,470

Net Surplus/(-)Deficit after Non operating Items 1q 1,106,685 -335,541

Notes to and forming part of the accounts are referenced to the Program Based Statement ofComprehensive Income contained herein.

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Notes to and forming part of the accounts are referenced to the Program Based Statement ofComprehensive Income contained herein.

FOR YEAR ENDED 30 JUNE 2011

Notes 30 June 2011

30 June 2010

$ $ $ $ $ $

Income Expenditure Net Income Expenditure Net

BUSINESS UNITS 1t

Family & Community Services

Group Homes 1q 1,514,432 1,548,650 1,196,379 1,332,732

Personal & Family Care 1q 91,899 98,113 132,387 246,385

Life Skills for Children 1q 0 0 39,592 44,181

Integrated Family Support Service 1q,7 421,254 395,734 340,975 335,488

Supported Accommodation Assistance Program 1q, 1b(iii) 271,805 209,086 296,751 271,070

Community Housing - Mountainview 1b(iii) 49,250 27,282 68,190 44,117

Identified Vulnerable Groups 1q 55,050 41,034 0 0

Emergency Relief 1q, 7 375,951 438,828 337,950 339,049

2,779,642 2,758,727 20,915 2,412,225 2,613,024 -200,798

Outreach & Development

Camps 1q, 7 1,027 1,027 7,166 7,166

Befrienders Program 52 209 59,912 22,629

Prison 0 65 0 1,719

School Chaplaincy 1q 62,019 62,019 38,504 39,655

Pastoral & Governance 7 18,740 62,781 0 0

Fundraising 1u,7 150,422 64,382 180,102 99,586

Bequests & Legacies 1u,7 21,346 0 21,253 0

Donations 1u,7 41,947 0 37,974 0

Development & Management 605 178,623 15,838 209,783

296,157 369,106 -72,949 360,748 380,539 -19,791

Retail 1r,8

Bargain Warehouse Moonah 217,955 44,596 158,140 106,503

Eastern Shore OpportunityShop 86,923 53,516 83,832 47,828

Barrack Cottage OpportunityShop 14,285 1,536 15,212 4,654

Partridge Nest OpportunityShop 32,598 2,488 34,408 7,641

Goodwood OpportunityShop 28,314 12,181 27,570 13,415

Huonville OpportunityShop 38,332 12,724 22,237 13,014

Claremont Opportunity Shop 1,696 3,953

Waste Rags 1,823 0 1,793 738

Management incl Donations & Auction Sales 17,142 406,198 4,541 235,179

439,069 537,192 -98,123 347,733 428,972 -81,239

Management & Administration

Cost Recoveries From Other Programs - Administration 1b(ii),1p 507,650 0 401,670 0

Cost Recoveries From Other Programs - Property Usage 1b(iv),1p 113,460 0 0 0

Activities 1b(iii) 251,592 0 101,462 629,315

Non-operating Items 1,294,415 0 92,470 0

2,167,117 910,276 1,256,841 595,602 629,315 -33,713

CURRENT YEAR SURPLUS/(-)DEFICIT 1q 1,106,685 -335,541

THE HOBART CITY MISSION INC. PROGRAM BASED STATEMENT OF COMPREHENSIVE INCOME

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THE HOBART CITY MISSION INC. STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2011

Notes 30-Jun-11 30-Jun-10

ASSETS $ $

CURRENT ASSETS

Bank Accounts & Unbanked Collections 5 25,698 49,065

Sundry Debtors 59,537 38,555

Prepayments 58,654 64,167

Cash Floats 5 2,440 2,190

Inventory of Second Hand Goods 1i 41,351 63,691

Investments 5 852,920 260,134

Total Current Assets 1,040,600 477,803

NON CURRENT ASSETS

Mission Premises 1b(i),1l, 1m, 2 & 4 2,829,521 3,389,210

Program Assets 1l, 1m, 2 & 4 242,845 194,695

Motor Vehicles 1l, 1m, 2 & 4 34,704 55,721

Investments 5 70,000 2,474

Total Non Current Assets 3,177,070 3,642,100

TOTAL ASSETS 4,217,670 4,119,902

LIABILITIES

CURRENT LIABILITIES

Taxation Liability 25,831 8,437

Bank Overdraft 22 253,635

Employee Entitlements 1b(v), 1o, 3 315,861 303,850

Trust Funds 1u & 7 408,486 933,127

Other 1q & 6 227,938 197,009

Total Current Liabilities 978,137 1,696,058

NON CURRENT LIABILITIES

Employee Entitlements 3 113,809 99,929

Loans 2c 0 304,876

Total Non Current Liabilities 113,809 404,805

TOTAL LIABILITIES 1,091,946 2,100,863

NET ASSETS 3,125,724 2,019,039

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THE HOBART CITY MISSION INC. STATEMENT OF CHANGES IN EQUITY

AS AT 30 JUNE 2011

Notes 30-Jun-11 30-Jun-10

Accumulated Funds Brought Forward -17,259 318,282

Current Surplus/(-)Deficit 1q 1,106,685 -335,541

Accumulated Funds Carried Forward 1,089,426 -17,259

Redevelopment Reserve 160,620 160,620

Revaluation Reserve Barrack & Goulburn Sts 1b(i),1l, 2 & 4 1,318,818 1,318,818

Revaluation Reserve Main Road Moonah 1b(i),1l, 2 & 4 292,860 292,860

Revaluation Reserve Haig St Lenah Valley 1b(i),1l, 2 & 4 264,000 264,000

TOTAL EQUITY 3,125,724 2,019,039

Notes to and forming part of the accounts are referenced to the Program Based Statement of Comprehensive Income contained herein.

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PART THREETHE FINANCIALS

1. SUMMARY OF ACCOUNTING POLICIES

a) Basis of AccountingThe Hobart City Mission Inc is a body corporate incorporated under the Associations Incorporation Act 1964. In the event of The Hobart City Mission Inc being wound up, the liability of members is determined by its constitution. The financial statements, comprising a statement by the officers, two Statements of Comprehensive Income, one for the Mission’s overall operations and the other for its individual programs together with a Statement of Financial Position, are a special purpose financial report that has been prepared in accordance with Australian Accounting Standards and the requirements of the Associations Incorporations Act 1964. The Directors have decided that these Statements are appropriate to meet the needs of members and grant accountability to donor organisations. The accounting policies based on accrual accounting principles, have been consistently applied and, except where there is a change in accounting policy, are consistent with those of the previous year. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures, unless otherwise stated.

b) Accounting Changes(i) Real Estate values are shown in the Statement of Financial Position as Mission Premises. At cost values previously reported in the Statement of Financial Position are significantly different to market values. The Mission Premises balance had been increased on 30 June 2009 to reflect the most recently received market valuation, with details for each property recorded in Note 2 and in the Statement of Changes In Equity which clearly indicate the revaluation amounts for each property. From 1 July 2009, depreciation on buildings is no longer charged. In January 2011, land and buildings representing part of the Barrack & Goulburn Streets property were sold to assist in the construction of the Affordable Housing complex. The profit derived from this sale has been estimated using the Valuer-General’s assessment of the value of the property determined in February 2009. The profit shown in the accounts is the difference between the proceeds received and the apportioned market value of the land and buildings sold as recorded in the Valuer-General’s assessment. New titles and revaluations are yet to be issued in respect of the land and buildings retained.(ii) The basis of allocation of administration costs is a charge of 15% on program income, with adjustments where grant donor arrangements require otherwise.(iii) Mountainview and the Supported Accomodation properties had property management functions transferred to Management & Administration for the 2010-11 year. Consequently, Mountainview and the Supported Accomodation Assistance Program financial results are compiled differently for the year ended 30 June 2011 in that only net income from property is recognized. In previous years, gross income from property was shown as revenue and expenditure included the costs of holding and maintaining the properties. The 2009-10 figures have not been adjusted for comparative purposes.(iv) A charge to program’s for the rental value of Mission premises occupied for the conduct of those programs has been made for the first time in 2010/11. For the current year, the total charge allocated for this purpose was $113,460.(v) A new provision for maternity/paternity leave has been introduced for 2010/11, but has been rescinded with effect from 30 June 2011.

THE HOBART CITY MISSION INC. NOTES TO AND FORMING PART OF THE ACCOUNTSFor the Year Ended 30 June 2011

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The following is a summary of the material accounting policies adopted by The Hobart City Mission Inc in preparing its financial statements.

c) Revenue RecognitionRevenues are recognised at fair value of the consideration received net of the amount of goods and services tax (GST). Capital Grants received and expended on capital goods in a financial year are recognized as revenue in that year. From 1 July 2007, donations in kind are recognised as income (at standard prices) giving rise to a value of inventory held at year end.

d) Interest RevenueInterest revenue is recognized as it accrues.

e) Sale of Non-Current AssetsThe net profits/losses of non-current asset sales are included as revenue at the date control of the asset passes to the buyer. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

f) Income TaxThe Hobart City Mission Inc. is exempt from income tax.

g) Goods and Services TaxRevenues, expenses and assets are recognised net of any amount of goods and services tax (GST). The net amount of GST recoverable from or payable to the Australian Taxation Office is included as a current asset or current liability in the Statement of Financial Position.

h) CashCash is carried at the face value of the amount deposited.

i) InventoriesInventories are carried at the lower of cost or net realisable value, or in the case of donated goods, at a standard price reflective of a fair value for secondhand goods. The principle for setting standard prices is the best estimate for 50% of the expected sale price for the item.

j) Payables (Current Liabilities)Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the organisation. Accounts payable are normally settled within 30 days. The carrying amount of accounts payable approximates net fair value.

k) Interest Bearing LiabilitiesLoans are carried on the Statement of Financial Position at their principal amount. Further information is contained in later notes.

l) Asset AcquisitionAll assets acquired, representing property, plant and equipment are initially recorded at their cost of acquisition. Mission premises have been revalued to reflect market value and the revaluation details are clearly shown in the notes and in the Statement of Changes In Equity.

THE HOBART CITY MISSION INC. NOTES TO AND FORMING PART OF THE ACCOUNTS (CONTINUED)

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m) DepreciationThe components of major assets, that have materially different useful lives, are effectively accounted for as separate assets, and are separately depreciated.

All non-current assets have limited useful lives and are depreciated using the straight-line method over their estimated useful lives. Assets are depreciated from the date of acquisition. Depreciation rates and methods are reviewed annually for appropriateness. Plant and equipment purchases over $1,000 are capitalised, assets with a value of $1,000 or less are expensed. All non-current assets have limited useful lives and are depreciated using the straight-line method over their estimated useful lives. Assets are depreciated from the date of acquisition. Depreciation rates and methods are reviewed annually for appropriateness. Plant and equipment purchases over $1,000 are capitalised, assets with a value of $1,000 or less are expensed.

The depreciation rates used for each class of asset are as follows:• Buildings (2% to 30 June 2009) 0% • Furniture & Equipment 7% - 25%• Computer Equipment 33%• Motor Vehicles 15%

n) LeasesThe Hobart City Mission Inc leases several properties from the Government and the private sectors, to run different programs. The tenants are charged a rental where appropriate and the charges are reviewed periodically.

o) Accrued WagesThe Hobart City Mission Inc pays its employees on a fortnightly basis. The amount due for salary and wages between the last payday in June and 30 June 2011 was accrued as a current liability. In 2010/11, an amount has been accrued to cover six days and eight days for shift workers’ entitlements, where two days represent a weekend. A further accrual was necessary for salary increases paid after 30 June 2011 which related to work performed in the 2010/11 financial year.

p) Administration & Overheads CostsDuring 2010/11, as much direct expenditure as could be readily attributed to specific programs was allocated directly to the cost of the program. Most administration and overhead cost cannot be directly allocated. A proportion of the total, based on 15% of the program income (in most cases), has been attributed to the Group Homes program, Personal & Family Care, Life Skills for Children, Integrated Family Support Service, Community Housing (including Mountainview), Supported Accommodation Assistance Program (Nita Bradshaw Houses), Emergency Relief (limited to $6,000 per agreement), Befrienders Program, School Chaplaincy, Outreach & Development, Fundraising, and Retail Operations. Additionally, for the first time in 2010/11, an internal charge to represent the rental value of Mission properties, has been allocated to programs on the basis of the floor space occupied for the purpose of undertaking those programs. The amount charged to specific programs, amounting to $621,110 (Administration $507,650; property use $113,460) (2009/2010 Administration only $401,670), is shown in the Program Based Statement of Comprehensive Income under Administration & Management.


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q) Government and Other GrantsGrant monies have been applied for the purpose for which they were granted. Government grants are recorded as income in the period to which the grants relate. Grants have been received in advance for School Chaplaincies at Claremont College and Oatlands District High School, $11,023, Sunshine Association of Tasmania $1,473 and Integrated Family Support Services, brokerage $1,871, making a total of $12,894 which has been carried forward to the next year.

The SAAP – Transitional Support Service program arrangements require recurrent grants received from DHHS be recognized fully as income in the year in which the grant is received. As the existing program was under-spent by $56,921 in 2010/11, the impact on the net operating deficit for that year is to increase the actual operating deficit by that amount. It is intended that the under-spent funds will be expended prior to the expiry of the current grant deed (31 December 2012). Furthermore, the Australian Government identified Vulnerable Groups program was also under-spent by $14,016 under similar grant recognition requirements. A request is in progress to apply this to the Emergency Relief program which was over-spent during the year. The effect of these two under-expenditures is to increase the actual operating deficit for 2010/11 to $258,667.


2011

2010 TOTAL PROGRAM GRANTS

$ TASMANIAN GOVERNMENT $

1,168,529 Community Integration Program (Group Homes) 1,432,026

340,976 IFSS Partnership 380,827

83,225 CSP - Personal & Family Counselling 85,971

25,000 Premier's Grant – Hobart & Glenorchy Welfare 25,000

232,081 SAAP - Transitional Support Service 239,740

10,441 SAAP - Property Management 10,793

130,668 Emergency Relief - via DEWR 0

0 Tassie Day Volunteers’ BBQ 600

AUSTRALIAN GOVERNMENT

31,172 DEWR - Chaplaincy 55,347

207,282 Emergency Relief – Hobart & Glenorchy 318,996

OTHER GRANTING BODIES

71,570 Tasmanian Community Fund - Warehouse Recycling 0

20,900 Tasmanian Community Fund - Social Inclusion 0

1,000 Honda Foundation 0

0 Sunshine Association of Tasmania 1,027

0 NILS Capital Grant – Eastern Shore office 10,000

2,322,844 Total Grant Funding 2,560,327

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r) Donations of Cash and Other GoodsCash donations are recognised as revenue when they are receipted and recorded in the accounts. Those goods not passed directly to persons in need are sold to the public at large through the opportunity shops and the sales proceeds are recorded as revenues from the operations of the opportunity shops. The opportunity shops are listed as Bargain Warehouse, Barrack Cottage, Eastern Shore Opportunity Shop, Moonah Opportunity Shop, Partridge Nest, Goodwood Opportunity Shop, Huonville Opportunity Shop, Claremont Opportunity Shop and Waste Rags. A new inventory management system for donated goods had been implemented in 2008 such that donations of goods and inventory held at balance date are reported at standard values. From March 2011, the inventory management system was changed from a perpetual inventory method to stock count and valuation at the end of each accounting period. The underlying principle of recognising 50% of the estimated value of inventory at year end remains unchanged.

s) Group HomesThe State Government has provided separate funds to run the Community Integration Program, which are disclosed separately in the financial statements. Some items of equipment originally purchased out of grant monies some years ago have been expensed as the equipment is considered to belong to residents. (This has not occurred in recent years). Residents pay for rental to the State Government for the properties leased to them as their residence and for other outgoings required for their day to day living.

t) Income from InvestmentsThis represents the total income earned on specific purpose and other funds available to maximise returns. Internally this interest is apportioned to various programs and trust funds and is recognised in relevant grant acquittal statements as income, where appropriate. It is included in the individual programs operating income.

u) Trust FundsWhere a bequest or donation has been given for specified purposes, or where the Board of Management specifies a purpose for funds received by The Hobart City Mission Inc, the amount required for expenditure in future periods is carried as a liability shown in the Statement of Financial Position as Trust Funds.

2. ACCOUNTING POLICY – NON-CURRENT ASSETS

Revaluation of Non-Current Assets

The Hobart City Mission Inc applied AASB 1041 Revaluation of Non-Current Assets for the first time from 1 July 2000. The standard required each class of non-current asset to be measured on either the cost or fair value basis. The Hobart City Mission Inc decided to use the cost basis. In 2008/09 the most recently available market valuations had been used to show the Non Current Assets Mission Premises value. The revaluation adjustment required to show this value is shown in the Statement of Changes in Equity. The revaluation adjustments have not been included in the Statements of Comprehensive Income.


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Separate cost values have been identified for land and buildings. Buildings at cost were depreciated each year by 2%, but in view of the revaluation policy, from 1 July 2009, no depreciation is charged.

a) Barrack StreetThe Valuer-General assessed the value of the Barrack Street property in February 2009 at $1.71 million, with land valued at $1 million and buildings at $710,000. This valuation has been used to determine the revaluation amount of $1,318,818 which has been taken to the Statement of Changes in Equity in 2008/09.

During 2010/11, additional capital expenditure of $48,272 ($493,443 in 2009/10) was applied to the Barrack Street buildings.

The Barrack Street property consists of a number of elements. In January 2011, the Goulburn Street residence, car park and sorting room were sold for the purpose of the construction of the Affordable Housing complex. Gross proceeds of $900,000 were received from the sale of these elements. The remaining elements are described as:

• Partridge Nest• Administration building• KT’s Café• Barrack Cottage

b) Lenah Valley CentreDuring 2001/02, the Uniting Church and The Hobart City Mission Inc entered into an arrangement whereby the former Lenah Valley Uniting Church was transferred in trust to The Hobart City Mission Inc at no cost. This was on the understanding that The Hobart City Mission Inc would continue to use the complex for work associated with The Hobart City Mission Inc for at least 20 years. The property cost value arising from this arrangement is zero. Late in 2008/09, improvements were undertaken at a cost of $80,540, during 2009/10 a further $2,913 was spent and $13,294 in 2010/11, all of which has been capitalised. The building costs are not subject to depreciation.

The Valuer-General assessed the value of the Haig Street property in February 2009 at $264,000, with land valued at $170,000 and buildings at $94,000. This valuation has been used to determine the revaluation amount of $264,000 which was taken to the Statement of Changes in Equity in 2008/09.

c) 11-13 Main Road, MoonahIn April 2001, The Hobart City Mission Inc purchased this Moonah property for the purpose of conducting a Bargain Warehouse. An interest free loan of $100,000 for 12 months (subsequently repaid in 2002/03) and an interest only loan of $145,000 from Perpetual Trustees Ltd provided funds for the purchase. The Perpetual Trustees Ltd loan was renewed on 31 July 2007, as a long term loan. A loan of $159,876 was secured in 2007/08 against this property for the purpose of buying property at New Norfolk. The New Norfolk property has since been sold, but the loan was not repaid and remained outstanding. Both loans were repaid on 2 March 2011. Separate cost values have been identified for land and buildings. Buildings at cost were depreciated each year by 2%, but this practice ceased from 1 July 2009. The buildings are now additionally used for Personal and Family Care and Emergency Relief programs.


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In March 2009, a market valuation of the Moonah property was obtained from Saunders & Pitt, independent property valuers and consultants. The market value of the land was assessed as $390,000 and buildings value was $175,000. This valuation has been used to determine the revaluation amount of $292,860 which was taken to the Statement of Changes in Equity in 2008/09.During 2009/10, capital works totaling $256,060 were undertaken. An additional $1,764 was spent during 2010/11. The Tasmanian Community Fund assisted towards these works with grants of $20,900 to renovate the Social Inclusion Unit and $71,570 to upgrade the warehouse facility.

d) Other Non-Current AssetsThese consist of motor vehicles, furniture and equipment and computer equipment and are maintained at cost values less depreciation allowances which are made in accordance with accounting policy in note 1 m.

3. EMPLOYEE ENTITLEMENTS

Annual Leave – The provision for employees’ entitlement to annual leave represents the amount The Hobart City Mission Inc. has a present obligation to pay, resulting from employees’ services up to balance date. The provision is a current liability and has been calculated on current wage and salary rates, including provision for superannuation, workers’ compensation insurance and leave loading obligations.

Long Service Leave – A liability for long service leave exists for all employees who have completed ten years of service, or who retire or resign (under specified circumstances) after seven years.

The provision has been calculated in a conservative manner. The current liability provision consists of entitlements at current wage and salary rates plus superannuation and workers’ compensation for all staff who have reached ten years service. The non-current liability consists of a 100% allowance of entitlements at current wage and salary rates plus superannuation and workers’ compensation for all staff who have reached five years service, but not yet reached 10 years. Additionally, there is an 80% allowance for staff employed between two and five years.

Sick Leave – The provision was previously based on 50% of group home workers accrual arising from sick leave entitlements added during the previous year. For the 2010/11 year, the provision represents 30% of the total sick leave accrued entitlement held by group homes workers.

Maternity Leave – The Board approved a staff entitlement to maternity and paternity leave, but rescinded ongoing entitlement at year end. The provision represents the value of entitlement pre-existing for staff at 30 June 2011.


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Number of Employees – The Hobart City Mission Inc employed 55 (last year 52) employees at year end, comprising 46 full time staff (last year 38) and 9 part time workers (last year 14).

EMPLOYEE ENTITLEMENTS PROVISIONSCURRENT LIABILITIES 2010 2011

LONG SERVICE LEAVE

Other Mission $50,142 $58,299

Group Homes $32,352 $26,677

$82,494 $84,976

ANNUAL LEAVE

Other Mission $112,971 $116,334

Group Homes $88,892 $82,329

$201,863 $198,663

SICK LEAVE

Group Homes $19,493 $19,947

$19,493 $19,947

MATERNITY LEAVE OTHER MISSION $0 $12,275

TOTAL $303,850 $315,861

NON-CURRENT LIABILITIES 2010 2011

LONG SERVICE LEAVE

Other Mission $67,510 $72,980

Group Homes $32,419 $40,829

TOTAL $99,929 $113,809



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TOTAL 2010 TOTAL 2011

PREMISES

$1,001,451 Barrack & Goulburn St $867,928

$107,792 less Depreciation on Buildings $68,519

$1,318,818 plus Revaluation Feb '09 $838,321

$2,212,477 Carrying Value $1,637,730

$83,454 2 Haig St, L/Valley imp'ments at cost $96,748

$0 less Depreciation on Buildings $0

$264,000 plus Revaluation Feb '09 $264,000

$347,454 Carrying Value $360,748

$548,932 11-13 Main Rd, Moonah $550,696

$12,513 less Depreciation on Buildings $12,513

$292,860 plus Revaluation March '09 $292,860

$829,279 Carrying Value $831,043

$3,389,210 Total Carrying Value for Premises $2,829,521

FURNITURE AND EQUIPMENT

$299,326 Values at Cost $426,297

$104,631 less Provision for Depreciation $183,452

$194,695 Total Net Furniture & Equipment $242,845

MOTOR VEHICLES

$250,930 Values at Cost $250,930

$195,209 less Provision for Depreciation $216,226

$55,721 Total Net Motor Vehicles $34,704

$3,639,626 Total Net Non Current Assets $3,107,070

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5. CASH AND INVESTMENTS – CURRENT & NON-CURRENT

6. OTHER CURRENT LIABILITIES


TOTAL 2010 TOTAL 2011

PREMISES

$47,518 Bank Accounts $19,180

$1,547 Unbanked Collections $6,518

$2,190 Cash Floats $2,440

$262,608 Investments $922,920

$313,863 Total Cash and Investments $951,058

TOTAL 2010 OTHER CURRENT LIABILITIES TOTAL 2011

PREMISES

$58,934 Trade Creditors $81,575

$44,581 Wages Accrual $92,115

$0 Insurance Payments Due $2,002

$14,736 Superannuation Payable $16,434

$44,699 Grants Unexpended $12,894

$11,920 Mission Money Outstanding $11,380

$6,208 Interest Payable on Loans $0

$3,691 Income Received in Advance $0

$9,143 Salary Deduction Commitments $11,538

$3,097 Travel Provision – transferred to Trust Funds $0

$197,009 Total Other Current Liabilities $227,938

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BALANCE DRAWN NOTIONAL BALANCE

1 Jul 10 TRUST FUNDS Additions 2010/11 Interest 30 Jun 11

$20,336 Bonds & Savings for Clients $6,340 $26,676

$0 Travel Provision – transferred from item 6 $3,097 $3,097

$2,863 Childrens’ Camps $2,500 $1,027 $127 $4,463

$337,636 Kathleen Grace Bequest $57,600 $12,835 $292,871

[Emergency Relief 50% & IFSS 50%]

$40,558 Grace Dixon Bequest $18,840 $995 $22,713

[Emergency Relief]

$3,172 Dorothy Belcher Bequest $3,172 $0

[Property Improvements]

$17,712 Grote Reber Foundation Gift $10,740 $320 $7,292

[Pastoral & Governance]

$355,012 Joan Burnaby Bequest $355,012 $0


$39,255 Winter Appeal $23,605 $39,255 $23,605

[Emergency Relief]

$101,233 Lesley Johnstone Bequest $101,233 $0


$15,350 John Nichols Bequest $15,350 $0


Ruby McDougall Bequest $32,255 $32,255 $0


Maxwell Keith Tims Bequest $505,415 $505,415 $0


Peter Noel Wiseman Bequest $27,430 $338 $27,768

[Not Allocated]

Rounding $1

$933,127 Total Trust Funds $600,642 $1,139,899 $14,615 $408,486

7. TRUST FUNDS

Trust Funds Disclosed AboveAt present for managing purposes all the funds have been classified as current liabilities. However the majority of the capital component of the Kathleen Grace conditional bequest is expected to be progressively applied over a ten year program. Consequently as at 30 June 2011, approximately $235,000 of the balance held (2010: $294,000) can be regarded as a non current liability.

8. MISSION OPERATIONS FROM OTHER PREMISES

Leased premises in Warrane are used for Eastern Shore Opportunity Shop operations, at Huonville for the Huonville Opportunity Shop, at Claremont for the Claremont Opportunity Shop and at Goodwood for the Goodwood Opportunity Shop. Opportunity shops are also operated from Hobart City Mission Inc premises in Moonah and Barrack Street. These are shown as Barrack Cottage, Partridge Nest and Bargain Warehouse.


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INDEPENDENT AUDIT REPORTTo the Members of The Hobart City Mission IncHobart

Report on the Financial ReportI have audited the accompanying financial report, being a special purpose financial report, of The Hobart City Mission Inc being a Not-for-Profit Incorporated entity, which comprises a statement of financial position and a statement of changes in equity as at 30 June 2011, statements of comprehensive income for the Mission’s overall operations and one for its individual programs for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and a statement by the Mission’s officers.

Officers’ Responsibility for the Financial ReportThe officers of The Hobart City Mission Inc are responsible for the preparation and fair presentation of the financial report, and have determined that the basis of preparation in the notes is appropriate to meet the requirements of The Associations Incorporations Act 1964 and is appropriate to meet the needs of the members and the requirements of grant donor organisations. The officers’ responsibility also includes such internal control as the officers determine is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on my audit. This does not include an opinion on the group homes client trust funds administered by the Mission and not included in the financial report. I have conducted my audit in accordance with Australian Auditing Standards. Those standards require that I 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 association’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 association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the officers, as well as evaluating the overall presentation of the financial report.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

OpinionIn my opinion, the financial report presents fairly, in all material respects, the financial position of The Hobart City Mission Inc Not-for-Profit Incorporated entity as at 30 June 2011, and of its financial performance for the year then ended in accordance with the financial reporting requirements of the Associations Incorporation Act 1964.

Basis of AccountingWithout modifying my opinion, I draw attention to the Notes to the financial report which describe the basis of accounting. The financial report has been prepared to assist The Hobart City Mission Inc Not-for-Profit Incorporated entity to meet the requirements of the Associations Incorporations Act 1964 and the requirements of grant donor organisations. As a result, the financial report may not be suitable for another purpose.

R Z Bogus FCPA Hobart Registered Company Auditor 17th October 2011


HOW CAN YOU HELP?

THERE ARE SO MANY WAYS THAT YOU CAN HELP THE HOBART CITY MISSION TO HELP THE COMMUNITY:

• Donations of any kind are always welcome

• Become a Mission Mate and regularly donate

• Get your organisation involved in Workplace Giving

• Consider a bequest in your will

• Volunteer your time and use your skills and experience to help others

• Attend our fund raising events

• Develop a Corporate Partnership with the Mission

• Become a Member of the Mission

We look forward to working with you to make a positive difference in our community.

THE HOBART CITY MISSON50 Barrack Street, Hobart TAS 7000P: 03 6215 4200, F: 03 6231 0514E: [email protected], W: www.hcm.asn.au

Documents

HCM Annual Report 2011