2004-2005 Financial Report

St Vincent de Paul Society Victoria Inc.ABN: 28 911 702 061 RN: A0042727Y

ECONOMIC ECONOMIC PARENT PARENTENTITY ENTITY ENTITY ENTITY

2005 2004 2005 2004$ $ $ $

RevenueFundraising 5,078,852 4,997,028 4,742,016 4,689,403 Government grants 19,149,130 16,266,890 4,120,873 2,947,021 Sale of Goods 14,832,134 13,429,185 13,751,012 12,418,033 Other income 5,987,824 5,670,197 503,802 553,739 Proceeds on disposal of fixed assets 2,596,495 2,419,661 1,638,596 2,126,321 Total revenue 47,644,435 42,782,961 24,756,299 22,734,517

ExpensesCost of Sales 9,958,007 9,540,952 8,391,472 8,160,074

Written down value of disposed/written-off fixed assets 2,852,509 1,786,326 1,231,259 1,580,141 Total expenses 12,810,516 11,327,278 9,622,731 9,740,215

Total funds available for other activities 34,833,919 31,455,683 15,133,568 12,994,302

Expenses from other activities

Assistance 8,047,229 7,438,651 8,069,199 7,587,678 Aged Care Services 11,706,423 11,665,100 - - Homelessness & Housing Services 7,707,519 7,391,017 - - Support Services 1,668,978 1,347,253 1,668,978 1,347,253 Fundraising/Public relations 629,066 511,986 629,066 511,986 Administration 2,473,407 2,568,084 2,473,407 2,568,085 Total expenses from other activities 32,232,622 30,922,091 12,840,650 12,015,002

Surplus from ordinary activities 2,601,297 533,592 2,292,918 979,300

Decrease in retained earnings on adoption of AASB 1028 - Employee Benefits - (686,671) - (686,671)

Total changes in equity 2,601,297 (153,079) 2,292,918 292,629 - -

3(f)

3(h)

3(d)3(e)

1(b)

3(g)

STATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 30 JUNE 2005

Note

2(a)

2(d)

3(c)

3(a)

2(b)2(c)

3(b)

2(e)

The accompanying notes form part of these Financial Statements 2



2005 2004 2005 2004$ $ $ $

RevenueFundraising 5,078,852 4,997,028 4,742,016 4,689,403 Government grants 19,149,130 16,266,890 4,120,873 2,947,021 Sale of Goods 14,832,134 13,429,185 13,751,012 12,418,033 Other income 5,987,824 5,670,197 503,802 553,739 Proceeds on disposal of fixed assets 2,596,495 2,419,661 1,638,596 2,126,321 Total revenue 47,644,435 42,782,961 24,756,299 22,734,517

ExpensesCost of Sales 9,958,007 9,540,952 8,391,472 8,160,074

Written down value of disposed/written-off fixed assets 2,852,509 1,786,326 1,231,259 1,580,141 Total expenses 12,810,516 11,327,278 9,622,731 9,740,215

Total funds available for other activities 34,833,919 31,455,683 15,133,568 12,994,302

Expenses from other activities

Assistance 8,047,229 7,438,651 8,069,199 7,587,678 Aged Care Services 11,706,423 11,665,100 - - Homelessness & Housing Services 7,707,519 7,391,017 - - Support Services 1,668,978 1,347,253 1,668,978 1,347,253 Fundraising/Public relations 629,066 511,986 629,066 511,986 Administration 2,473,407 2,568,084 2,473,407 2,568,085 Total expenses from other activities 32,232,622 30,922,091 12,840,650 12,015,002

Surplus from ordinary activities 2,601,297 533,592 2,292,918 979,300

Decrease in retained earnings on adoption of AASB 1028 - Employee Benefits - (686,671) - (686,671)

Total changes in equity 2,601,297 (153,079) 2,292,918 292,629 - -

3(f)

3(h)

3(d)3(e)

1(b)

3(g)

STATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 30 JUNE 2005

Note

2(a)

2(d)

3(c)

3(a)

2(b)2(c)

3(b)

2(e)




2005 2004 2005 2004$ $ $ $

CURRENT ASSETSCash assets 22,235,338 18,559,498 9,322,797 6,211,413 Receivables 416,123 324,040 132,418 98,669 Inventories 153,737 185,591 125,792 151,679 Other financial assets 8,138,704 8,125,647 1,000,000 1,000,000 Other assets 489,561 415,299 298,424 349,089

TOTAL CURRENT ASSETS 31,433,463 27,610,075 10,879,431 7,810,850

NON-CURRENT ASSETSProperty, plant & equipment 51,245,804 51,650,635 21,645,950 22,310,796 Other financial assets - - 37,739,829 37,739,829

TOTAL NON-CURRENT ASSETS 51,245,804 51,650,635 59,385,779 60,050,625 TOTAL ASSETS 82,679,267 79,260,710 70,265,210 67,861,475

CURRENT LIABILITIESPayables 1,382,804 880,194 247,107 376,955 Interest bearing liabilities - 77,148 - 77,148 Provisions 3,007,525 3,101,557 591,717 691,100 Other liabilities 9,738,967 9,390,780 1,130,749 793,624

TOTAL CURRENT LIABILITIES 14,129,296 13,449,679 1,969,573 1,938,827

NON-CURRENT LIABILITIESProvisions 663,363 525,720 271,699 191,629

TOTAL NON-CURRENT LIABILITIES 663,363 525,720 271,699 191,629 TOTAL LIABILITIES 14,792,659 13,975,399 2,241,272 2,130,456 NET ASSETS 67,886,608 65,285,311 68,023,938 65,731,019

EQUITY

Reserves 14 (a) 32,403,596 34,560,596 14,110,064 16,267,064 Retained earnings 14 (b) 35,483,012 30,724,715 53,913,873 49,463,955

Total parent entity interest 67,886,608 65,285,311 68,023,937 65,731,019 TOTAL EQUITY 67,886,608 65,285,311 68,023,937 65,731,019

12

9

5

10

8

13

6

1112

7

7

FOR THE YEAR ENDED 30 JUNE 2005

4

STATEMENT OF FINANCIAL POSITION

Note




2005 2004 2005 2004$ $ $ $

Cash flows From Operating Activities:Receipts from operating activities 29,825,184 26,761,065 8,798,956 7,541,812 Receipts from supporters 13,720,488 12,417,766 13,720,488 12,439,889 Payments to clients, suppliers and employees (40,310,034) (38,127,620) (19,928,372) (18,755,022) Interest received 1,410,416 1,095,419 349,851 383,331 Net cash provided by (used in) operating activities 16 (b) 4,646,054 2,146,630 2,940,923 1,610,010

Cash flows From Investing Activities:Proceeds - sale of property, plant and equipment 2,596,495 2,419,661 1,638,596 2,126,321 Proceeds - sale of investments - 500,000 - 500,000 Payment for subsidiary, net of cash acquired - - - (17,956,223) Payment for property, plant and equipment (4,258,905) (8,516,229) (1,390,988) (6,638,098) Payments for investments (13,057) (7,012,366) - -Capital maintenance grant received - 1,047,707 - -Net cash provided by (used in) investing activities (1,675,467) (11,561,227) 247,608 (21,968,000)

Cash flows From Financing Activities:Repayment of finance leases (77,148) (157,287) (77,148) (157,287) Proceeds from residents' accommodation bonds 3,706,505 3,054,817 - -Repayment of residents' accommodation bonds (2,924,104) (1,650,125) - -Net cash provided by (used in) financing activities 705,253 1,247,405 (77,148) (157,287)

Net increase (decrease) in cash 3,675,840 (8,167,192) 3,111,383 (20,515,277) Cash at the beginning of the financial period 18,559,498 26,726,690 6,211,414 26,726,690

Cash at the end of the financial period 16 (a) 22,235,338 18,559,498 9,322,797 6,211,414

Note

FOR THE YEAR ENDED 30 JUNE 2005STATEMENT OF CASHFLOWS



Note 1

(a) Basis of accounting

(b) Principles of consolidation

(c) Revenue

The financial report has been prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets. Cost is based on the fair value of the consideration given in exchange for assets. The following specific accounting policies have been consistently applied, unless otherwise stated.

The financial report covers the economic entity being St Vincent de Paul Society Victoria Inc. and St Vincent de Paul Aged Care and Community Services. The parent entity is St Vincent de Paul Society Victoria Inc.

Interest revenue, from the bank and from residents with outstanding bonds, is recognised as it accrues on a monthly basis.

Proceeds of non-current asset sales are included as revenue when 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 and gross proceeds.

Revenue from donations and bequests is recognised when received into the Gift Account.

Revenue from the sale of goods is recognised upon delivery of the goods to customers.

The financial report is a general purpose financial report prepared in accordance with Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Associations Incorporations Act (Vic) 1981.

The St Vincent de Paul Society Victoria Inc. is a non government welfare agency incorporated under the Associations Incorporations Act (Vic) 1981 and is domiciled in Australia. The Society operates a separate company limited by guarantee to run its aged care and community services.

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2005

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Income from the government is principally of a recurrent or capital nature and is intended to fund ongoing operations or asset acquisitions. Government grants which relate to future service provision obligations are carried forward and disclosed as grants in advance and deferred revenue.

Resident contributions are recognised when the service is provided.

The St Vincent de Paul Society Victoria Inc. is a non-profit organisation and receives a principal part of its income from donations, as cash or in kind. Amounts donated can be recognised only as revenue when the entity gains control, economic benefits are probable and the amount of the contribution can be measured reliably. State Council has the responsibility for ensuring that all voluntary and other revenues to which the Society gains control are accounted for properly. This involves establishing controls to ensure that voluntary revenue is recorded in the financial records, however at times it is impractical to maintain controls over the collection of such revenue prior to its initial entry into the financial records or to ensure that any economic benefit can be measured reliably. Therefore, voluntary revenue is recognised in these accounts when control, benefit and reliable measurement can be achieved.

The combined financial report of St Vincent de Paul Society Victoria Inc. comprises the consolidated financial reports of St Vincent de Paul Society Victoria Inc. and St Vincent de Paul Aged Care and Community Services.

A controlled entity is any entity controlled by St Vincent de Paul Society Inc. Control exists where St Vincent de Paul Society Inc. has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with St Vincent de Paul Society Victoria Inc. to achieve the objectives of St Vincent de Paul Society Inc. A list of controlled entities is contained in Note 7.

All inter-entity balances and transactions between entities in the economic entity have been eliminated on consolidation.

5



Note 1

(d)

(e)

(f) Investments

(g) Accommodation Bonds

(h)

(i)

(j) Fixed Assets

Leasehold improvements

Furniture, plant and equipment

Computer hardware

Motor vehicles

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued

For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks, deposits at call and money market investments which are readily convertible into cash.

Investments are carried at the lower of cost or net recoverable amount. The carrying amount of investments is reviewed annually by directors to ensure it is not in excess of the recoverable amount of these investments. Permanent diminutions in the value of any investment below cost are charged to the statement of financial performance as they occur.

The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts.

The company, Society of St Vincent De Paul (Victoria), holds various properties in trust for St Vincent de Paul Society Victoria Inc.

Goods and Services Tax (GST)

Computer hardware is measured on the cost basis.

Leasehold improvements are measured on the cost basis and are amortised over the shorter of the useful life of the asset or the term of the lease.

Each class of property, plant and equipment are carried at cost or fair value less where applicable, any accumulated depreciation.

The requirement that the carrying amounts of non-current assets do not exceed their recoverable amount does not apply to the non-current assets of not-for-profit entities whose future economic benefits are not primarily dependent on the ability to generate net cash inflows.

The carrying amount of the fixed assets in the Statement of Financial Position represents their remaining future economic benefits as at 30 June 2005.

Property

Motor vehicles are measured on the cost basis.

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

Freehold land and buildings are measured on the cost basis.

Furniture, plant and equipment are measured on the cost basis.

The Society is not subject to income tax.

Cash

Accommodation bonds are recognised in accordance with the government guidelines

Assets Held in Trust

Income Tax

6



Note 1

Computer software

Depreciation

Class of Fixed AssetBuildings Leasehold improvementsFurniture, Plant & EquipmentComputer Hardware & SoftwareMotor Vehicles - CarsMotor Vehicles - Trucks

(k)

(l)

(m)

(n) Leases

(o)Wages, salaries and annual leave


The depreciable amount of all fixed assets including buildings and leasehold improvements, but excluding freehold land, is depreciated on a straight line basis over their estimated useful lives to the Company commencing from the time the asset is held ready for use.

Inventories are measured at the lower of cost or net realisable value. Costs are assigned on the basis of average cost.

Trade debtors are recognised when the risks and rewards of ownership of the underlying sales transactions have passed to customers. This event usually occurs on delivery of goods or services to customers. Trade debtors are recorded at nominal amounts. Credit terms are 30 days. Collectability of overdue accounts is assessed on an ongoing basis.

These amounts represent unpaid liabilities for goods received by and services provided to the consolidated entity prior to the end of the financial year. The amounts are unsecured and are normally settled within 30 days

Leases of fixed assets where substantially all the risks and benefits incidental to ownership of the asset, but not the legal ownership, are transferred to entities within the consolidated entity are classified as finance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are amortised on a straight line basis over their estimated useful lives, where it is likely that the consolidated entity will obtain ownership of the asset, or over the term of the lease. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability. Lease payments are allocated between interest, rental expenses and a reduction of the liability

1% to 2.5% straight line

The depreciation rates used for each class of depreciable asset are:

15% to 20% straight line33% straight line10% to 20% straight line

Employee benefits

Over the term of the lease

Receivables

Variable straight line according to estimated

Inventoriesresidual and useful life of the vehicle

Liabilities for wages, salaries and annual leave expected to be settled within 12 months of the reporting date represent present obligations resulting from employees' services provided up to the reporting date, calculated at undiscounted amounts based on remuneration wage and salary rates that the Company expects to pay as at reporting date including on-costs.

Trade and Other Creditors

Sick leave is non-vesting and has not been provided for.

Depreciation rate and method

Computer software is measured on the cost basis.

7



Note 1

Long service leave

Superannuation

(p)

(q) Impact of Adoption of Australian Equivalents to International Financial Reporting Standards

Revenue on Disposal of Assets

Impairment of Assets

The economic entity has reassessed its impairment testing policy and tested all assets for impairment as at 1 July 2005. The impact of the change is estimated to be $nil.

The economic entity’s management, along with its auditors, have assessed the significance of the expected changes and are preparing for their implementation. An AIFRS committee is overseeing and managing the economic entity’s transition to AIFRS. The impact of the alternative treatments and elections under AASB 1: First Time Adoption of Australian Equivalents to International Financial Reporting Standards has been considered where applicable.

The directors are of the opinion that the key material differences in the economic entity’s accounting policies on conversion to AIFRS and the financial effect of these differences where known are as follows. Users of financial statements should, however, note that the amounts disclosed could change if there are any amendments by standard-setters to the current AIFRS, or interpretation of the AIFRS requirements change from the continued work of the economic entity’s AIFRS committee.

Currently the economic entity includes gross revenue received on disposal of assets as revenue. Under AIFRS, gains and losses on sale of assets will be recognised on a net basis in revenue, resulting in lower revenue being recorded by the economic entity.

Under AASB 136: Impairment of Assets, the recoverable amount of an asset is determined as the higher of fair value less cost to sell, and value in use. In determining value in use, projected future cash flows are discounted using a risk adjusted pre-tax discount rate and impairment is assessed for the individual asset or at the ‘cash generating unit’ level. A ‘cash generating unit’ is determined as the smallest group of assets that generates cash flows, which are largely independent of the cash inflows of from other assets or group of assets. The current policy is to determine recoverable amount of an asset on the basis of undiscounted net cash flows that will be received from the assets use and subsequent disposal. It is unlikely that this change in accounting policy will lead to impairments being recognised more often.

The economic entity is preparing and managing the transition to Australian Equivalents to International Financial Reporting Standards (AIFRS) effective for the financial years commencing from 1 January 2005. The adoption of AIFRS will be reflected in the economic entity and the parent entity’s financial statements for the year ended 30 June 2006. On first time adoption of AIFRS, comparatives for the financial year ended 30 June 2005 are required to be restated. The majority of the AIFRS transitional adjustments will be made retrospectively against retained earnings at 1 July 2004.

The provision for long service leave represents the present value of the estimated future cash outflows to be made resulting from employees' services provided up to the reporting date.

The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to national government bonds at reporting date which most closely match the terms of maturity of the related liabilities.


Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

Comparative Information

The Company contributes to several Employer Sponsored Superannuation Funds. The Company has a legally enforceable obligation to contribute to the plans at a rate of 9% of the employees' wages and salaries. All employees are entitled to preserved benefits on retirement, disability or death, and unpreserved benefits upon resigning from the fund. Superannuation contributions are recognised as an expense when incurred.

8



2005 2004 2005 2004$ $ $

Note 2 REVENUERevenue:

(a) Fundraising ActivitiesBequests 1,474,659 1,649,556 1,374,988 1,512,645 Donations 3,604,193 3,347,472 3,367,028 3,176,758

5,078,852 4,997,028 4,742,016 4,689,403

(b) Government GrantsCouncils/Conferences/Centres 4,120,873 2,947,021 4,120,873 2,947,021 Community & Support Services Group 7,483,490 6,992,781 - -Aged Care Group 7,544,767 6,327,088 - -

19,149,130 16,266,890 4,120,873 2,947,021

(c) Sale of GoodsSales - Centres of Charity 13,485,692 12,159,531 13,485,692 12,159,531 Sales - Piety 265,320 258,502 265,320 258,502 Sales - Ozanam Enterprises 1,081,122 1,011,152 - -

14,832,134 13,429,185 13,751,012 12,418,033

(d) Other IncomeClient rent/fees 3,700,023 3,776,140 - -Accomodation bonds retention 312,930 281,308 - -Interest received - other persons 1,685,420 1,206,922 349,851 383,331 Sundry income 289,451 405,827 153,951 170,408

5,987,824 5,670,197 503,802 553,739

(e) Proceeds on disposal of fixed assetsProceeds on disposal of fixed assets 2,596,495 2,419,661 1,638,596 2,126,321

47,644,435 42,782,961 24,756,299 22,734,517


9



2005 2004 2005 2004$ $ $ $

Note 3 OPERATING SURPLUS

Other expenses from ordinary activities

(a) Cost of SalesEmployee salaries & benefits 4,689,352 4,300,692 3,463,416 3,257,734 Purchases/Materials 534,564 526,759 411,103 382,984 Selling & Administration 4,734,091 4,713,501 4,516,953 4,519,356

9,958,007 9,540,952 8,391,472 8,160,074

(b) Written down value of disposed/written-off fixed assets Written down value of disposed/written-off fixed assets 2,852,509 1,786,326 1,231,259 1,580,141

(c) Assistance - Conferences/Councils Accomodation 208,437 155,995 208,437 155,995 Cash 28,715 15,691 28,715 15,691 Food vouchers 2,379,837 2,459,504 2,379,837 2,459,504 Food purchases 999,103 1,049,413 999,103 1,049,413 Transport 154,894 200,548 154,894 200,548 Whitegoods 299,224 284,672 299,224 284,672 Utilities 187,660 188,793 187,660 188,793 Medical 63,891 66,666 63,891 66,666 Education 307,702 228,979 307,702 228,979 Compassionate 28,623 42,314 28,623 42,314 Youth 34,487 81,864 34,487 81,864 Grants to Community Services Group - - 21,970 149,027 Migrant & Refugees 2,555,938 1,935,162 2,555,938 1,935,162 Overseas 375,300 332,551 375,300 332,551 Indigenous Program 20,000 70,000 20,000 70,000 Bursary 2,693 12,300 2,693 12,300 Sundry 400,725 314,199 400,725 314,199

8,047,229 7,438,651 8,069,199 7,587,678

(d) Aged Care ServicesCatering & Food 671,015 651,058 - -Cleaning 264,463 180,987 - -Depreciation 542,376 480,011 - -Employee salaries & benefits 8,321,698 8,244,748 - -Occupancy 205,904 277,363 - -Medical & other supplies 146,494 92,688 - -Legal & Audit 158,446 221,477 - -Motor vehicle running 39,812 30,646 - -Repairs & maintenance 246,517 268,957 - -Resident amenities 28,836 68,321 - -Telephone 47,311 47,579 - -Utilities 325,760 332,933 - -Workcover 219,692 363,029 - -Other 488,099 405,303 - -

11,706,423 11,665,100 - -


10



2005 2004 2005 2004$ $ $ $


Note 3 OPERATING SURPLUS continued

(e) Homelessness & Housing ServicesCleaning/Waste removal 213,194 263,835 - -Client support/Emergency accomodation 1,054,554 698,017 - -Depreciation 388,360 391,152 - -Employee salaries & benefits 4,779,387 4,693,081 - -Occupancy 182,240 246,736 - -Legal & Audit 87,423 111,312 - -Motor vehicle running 146,974 136,754 - -Repairs & Maintenance 194,199 283,878 - -Telephone 115,564 147,780 - -Utilities 112,333 91,176 - -Other 433,291 327,296 - -

7,707,519 7,391,017 - -

(f) Support ServicesAccounting & payroll support 160,000 160,000 160,000 160,000 Conference Support -Employee salaries & benefits 543,218 375,146 543,218 375,146 Conference Support - Other 142,252 87,074 142,252 87,074 State, National, International Councils 164,069 210,707 164,069 210,707 Conference operating 572,715 436,660 572,715 436,660 Youth Support - Employee salaries & benefits 52,352 46,439 52,352 46,439 Youth Support - Other 34,372 31,227 34,372 31,227

1,668,978 1,347,253 1,668,978 1,347,253

(g) Fundraising/Public relationsEmployee salaries & benefits 242,211 207,351 242,211 207,351 Promotion 337,365 261,261 337,365 261,261 Other 49,490 43,374 49,490 43,374

629,066 511,986 629,066 511,986

(h) AdministrationComputer maintenance 161,914 165,330 161,914 165,330 Audit 21,464 14,035 21,464 14,035 Employee salaries & benefits 1,060,346 1,002,641 1,060,346 1,002,641 Depreciation & amortisation 213,953 264,696 213,953 264,696 Insurance 38,267 56,689 38,267 56,689 Leases - - - -Legal 46,775 3,859 46,775 3,859 Motor vehicle running 31,467 30,174 31,467 30,174 Occupancy 10,800 40,468 10,800 40,468 Printing/Postage/Office supplies

142,644 112,673 142,644 112,673 Repairs & maintenance 113,760 94,746 113,760 94,746 Telephone 42,321 39,088 42,321 39,088 Training 23,284 30,782 23,284 30,782

11



2005 2004 2005 2004$ $ $ $


Note 3 OPERATING SURPLUS continued

Travel & accommodation 37,388 30,513 37,388 30,513 Other 197,029 134,996 197,029 134,996 State Council 331,995 547,394 331,995 547,395

2,473,407 2,568,084 2,473,407 2,568,085

45,043,138 42,249,369 22,463,381 21,755,217

(i) Surplus from ordinary activities has been determined after:

(i) Expenses

Depreciation and amortisation of non-current assets - Buildings 559,477 523,251 247,721 242,663 - Leasehold Improvements 10,210 5,448 - -- Furniture, Plant and Equipment 410,911 426,074 117,346 126,680 - Motor Vehicles 544,859 632,957 365,069 450,350 - Leased Motor Vehicles 50,572 27,734 50,572 27,734 - Computer Equipment 73,105 89,627 39,545 51,430 - Computer Software 162,095 126,393 4,324 3,457

1,811,229 1,831,484 824,577 902,314

Write down of fixed assets 954,597 53,424 - 53,424

Rental expense on operating leases- Minimum lease payments 1,384,632 1,290,485 1,242,229 1,185,399

Loss on sale of fixed assets - 22,708 - 22,708

Remuneration of Auditor - Audit 51,641 52,500 21,464 23,000 - Other Services - 740 - 740

51,641 53,240 21,464 23,740

(ii) Net gains

Profit on sale of fixed assets 698,582 164,069 407,337 568,888

12



2005 2004 2005 2004$ $ $ $

Note 4 CASH ASSETSCash on hand 15,590 13,739 1,350 1,369 Cash deposits with banks - Councils & Central Office (89,995) 182,283 (89,995) 182,283

- Centres (42,253) (13,661) (42,253) (13,661) - Aged Care & Community Services 1,008,374 1,135,329 - -

Term Deposits Councils & Central Office - Employee Entitlements 400,000 259,313 400,000 259,313

- Migrant & Refugees 493,155 512,261 493,155 512,261 - Overseas Relief 215,878 311,894 215,878 311,894 - Disaster Relief 71,840 - 71,840 -- Refugee Resettlement 2,233,455 944,764 2,233,455 944,764 - Conferences/Councils 3,646,862 2,949,580 3,646,862 2,949,580

Centres - Employee Entitlements 500,000 500,000 500,000 500,000

- Capital & Property Maintenance 1,892,505 563,610 1,892,505 563,610 Aged Care & Community Services

- Funds Awaiting Utilisation 1,370,249 1,021,488 - -- Employee Entitlements 2,807,472 2,744,549 - -- Residents Trust 7,712,206 7,434,349 - -

22,235,338 18,559,498 9,322,797 6,211,413

Note 5 RECEIVABLES - CURRENTTrade debtors 304,061 229,836 117,833 87,309 Provision for doubtful debts (16,184) (2,680) - -

287,877 227,156 117,833 87,309

Other debtors 128,246 96,884 14,585 11,360 Total Current Receivables 416,123 324,040 132,418 98,669

Note 6 INVENTORIES - CURRENTFinished goods - average cost 153,737 185,591 125,792 151,679

Note 7 OTHER FINANCIAL ASSETS - CURRENTUnits in managed investment funds 138,704 125,647 - -Medium term notes 8,000,000 8,000,000 1,000,000 1,000,000

8,138,704 8,125,647 1,000,000 1,000,000

The redemption value of units in managed investment funds as at 30 June 2004 was $124,409. The Company intends to hold these financial assets until maturity at which time it is expected that the current carrying amount will be fully recovered.


13



2005 2004 2005 2004$ $ $ $


Note 7 OTHER FINANCIAL ASSETS - continued

OTHER FINANCIAL ASSETS - NON CURRENTInvestment in Controlled entity - - 37,739,829 37,739,829

Country of Incorporation Percentage OwnedParent Entity:St Vincent de Paul Society Victoria Inc. Aust - -

Controlled entities of St Vincent de Paul Society Victoria Inc.St Vincent de Paul Aged Care and Community Services Aust 100% 100%

Note 8 OTHER ASSETS - CURRENTGST recoveries 189,852 290,422 189,852 287,899 Prepayments 199,395 71,346 8,258 7,659 Accrued income 100,314 53,531 100,314 53,531

489,561 415,299 298,424 349,089

14



2005 2004 2005 2004$ $ $

Note 9 PROPERTY, PLANT & EQUIPMENT

LANDAt cost 24,680,899 25,363,699 9,694,953 10,173,753

BUILDINGSAt cost 22,252,722 21,418,426 10,018,556 9,933,198 Buildings under construction 1,529,280 407,053 236,819 33,464 Less accumulated amortisation (2,093,533) (1,594,475) (764,318) (545,326)

21,688,469 20,231,004 9,491,057 9,421,336

LEASEHOLD IMPROVEMENTSAt cost 42,012 42,012 - -Less accumulated amortisation (15,658) (5,448) - -

26,354 36,564 - -

FURNITURE, PLANT & EQUIPMENTAt cost 3,741,766 5,532,897 1,065,721 1,051,781 Less accumulated depreciation (1,829,455) (2,634,645) (325,746) (208,401)

1,912,311 2,898,252 739,975 843,380

MOTOR VEHICLESAt cost 3,836,020 3,677,831 2,572,380 2,461,369 Less accumulated depreciation (1,218,968) (1,080,305) (898,302) (698,256)

2,617,052 2,597,526 1,674,078 1,763,113

MOTOR VEHICLES UNDER FINANCE LEASESAt cost - 511,231 - 511,231 Less accumulated amortisation - (460,659) - (460,659)

- 50,572 - 50,572

COMPUTER HARDWAREAt cost 386,663 365,233 165,114 141,416 Less accumulated depreciation (291,688) (247,951) (124,419) (89,687)

94,975 117,282 40,695 51,729

COMPUTER SOFTWARE & IT DEVELOPMENTAt cost 521,390 489,286 12,973 10,370 Less accumulated depreciation (295,646) (133,551) (7,781) (3,457)

225,744 355,735 5,192 6,913

51,245,804 51,650,635 21,645,950 22,310,796


A valuation of land and buildings was undertaken by the directors on 30 June 2005. This valuation was based on an independent valuation undertaken by m3property on 30 June 2002. The directors' valuation disclosed a current market value of land & buildings of $43,935,886, which together with the purchase of land and building in the current year of $2,433,482 totals $46,369,368.

15



2005 2004 2005 2004$ $ $


Note 9 PROPERTY, PLANT & EQUIPMENT - continued

Total LandCarrying amount at beginning of financial year 25,363,699 24,999,716 10,173,753 10,055,772 Additions - 1,246,002 - 1,000,000 Disposals (682,800) (882,019) (478,800) (882,019) Carrying amount at end of financial year 24,680,899 25,363,699 9,694,953 10,173,753

Total BuildingsCarrying amount at beginning of financial year 20,231,005 16,723,488 9,421,336 6,193,032 Additions 2,433,482 4,235,825 607,913 3,676,024 Disposals (409,573) (205,057) (290,471) (205,057) Reclassifications (6,968) - - -Less amortisation (559,478) (523,251) (247,721) (242,663) Carrying amount at end of financial year 21,688,469 20,231,005 9,491,057 9,421,336

Total Leasehold ImproventsCarrying amount at beginning of financial year 36,564 - - -Additions - 42,012 - -Less depreciation (10,210) (5,448) - -Carrying amount at end of financial year 26,354 36,564 - -

Total Furniture, Plant & EquipmentCarrying amount at beginning of financial year 2,898,252 2,258,911 843,380 121,596 Additions 372,599 1,065,619 13,941 848,464 Disposals/write down (954,597) (36) - -Reclassifications 6,968 (169) - -Less depreciation (410,911) (426,073) (117,346) (126,680) Carrying amount at end of financial year 1,912,311 2,898,252 739,975 843,380

Total Motor VehiclesCarrying amount at beginning of financial year 2,597,526 2,340,912 1,763,113 1,654,991 Additions 1,367,737 1,588,673 735,985 1,051,537 Disposals (803,352) (699,103) (459,951) (493,065) Less depreciation (544,859) (632,956) (365,069) (450,350) Carrying amount at end of financial year 2,617,052 2,597,526 1,674,078 1,763,113

Carrying amount at beginning of financial year 50,572 78,306 50,572 78,306 Additions - - - -Disposals - - - -Less amortisation (50,572) (27,734) (50,572) (27,734) Carrying amount at end of financial year - 50,572 - 50,572

Total Motor Vehicles under Finance

ReconciliationsReconciliations of the carrying amounts of each class of property, plant & equipment at the beginning and end of the current and previous financial year are set out below:

16



2005 2004 2005 2004$ $ $


Note 9 PROPERTY, PLANT & EQUIPMENT - continued

Total Computer HardwareCarrying amount at beginning of financial year 117,282 145,676 51,729 95,010 Additions 52,986 114,599 30,549 61,573 Disposals (150) (111) - -Reclassifications - 169 - -Write offs (2,038) (53,424) (2,038) (53,424) Less depreciation (73,105) (89,627) (39,545) (51,430) Carrying amount at end of financial year 94,975 117,282 40,695 51,729

Total Computer Software & IT DevelopmentCarrying amount at beginning of financial year 355,735 258,628 6,913 9,870 Additions 32,104 223,500 2,603 500 Less depreciation (162,095) (126,393) (4,324) (3,457) Carrying amount at end of financial year 225,744 355,735 5,192 6,913

Total Property, Plant & EquipmentCarrying amount at beginning of financial year 51,650,635 46,805,637 22,310,796 18,208,577 Additions 4,258,907 8,516,230 1,390,991 6,638,098 Disposals/write-downs (2,850,472) (1,786,326) (1,229,222) (1,580,141) Write offs (2,038) (53,424) (2,038) (53,424) Less depreciation and amortisation (1,811,230) (1,831,481) (824,577) (902,314) Carrying amount at end of financial year 51,245,804 51,650,635 21,645,950 22,310,796

During the year, the directors of St Vincent de Paul Aged Care and Community Services approved the write-off of furniture, plant and equipment with a total written down value of $954,597. This represents grouped assets that could not be separately identified on the asset register due to lack of detailed fixed registers maintained at the aged care facilities prior to centralisation. It would be difficult to verify the existence and attribute value to assets without detailed records of prior purchases made.

17



2005 2004 2005 2004$ $ $ $

Note 10 PAYABLES - CURRENTTrade creditors 572,126 319,276 (27,076) 170,942 Unsecured: - - - -Accrued creditors 356,358 135,215 195,817 84,007 Other creditors 327,404 343,366 78,366 99,883 Amount payable to subsidiary (22,123) - - 22,123 Grants in advance 149,039 82,337 - -

1,382,804 880,194 247,107 376,955

Note 11 INTEREST BEARING LIABILITESCURRENTLease liability - 77,148 - 77,148

Note 12 PROVISIONS - CURRENTEmployee benefits (a) 3,007,525 3,101,557 591,717 691,100

NON-CURRENTEmployee benefits (a) 663,363 525,720 271,699 191,629

(a) Aggregate Employee Entitlement Liability 3,670,888 3,627,277 863,416 882,729

(b) Number of employees at reporting date 663 680 139 127

Note 13 OTHER - CURRENTUnsecuredRefundable accommodation bonds 7,712,206 7,434,349 - -Prepaid income 1,842,110 1,571,881 1,032,400 524,174 Other liabilities - - - -GST payable 184,651 384,550 98,349 269,450

9,738,967 9,390,780 1,130,749 793,624


18



2005 2004 2005 2004$ $ $ $

Note 14(a) Reserves

Asset revaluation reserve 32,075,560 32,873,560 14,110,064 14,908,064 Capital profits reserve 198,036 1,557,036 - 1,359,000 Fund-a-Future reserve 130,000 130,000 - -

32,403,596 34,560,596 14,110,064 16,267,064

Movements during the year:Asset revaluation reserve

Opening balance 32,873,560 33,973,560 14,908,064 33,973,560 Transfers to Retained Earnings (798,000) (1,100,000) (798,000) (19,065,496) Closing balance 32,075,560 32,873,560 14,110,064 14,908,064

Capital profit reserveOpening balance 1,557,036 1,557,036 1,359,000 1,557,036 Transfers to Retained Earnings (1,359,000) - (1,359,000) (198,036) Closing balance 198,036 1,557,036 - 1,359,000

Fund-a-Future reserveOpening balance 130,000 130,000 - 130,000 Transfers to Retained Earnings - - - (130,000) Closing balance 130,000 130,000 - -

(b)Retained earnings at the beginning of thefinancial year 30,724,715 29,777,794 49,463,955 29,777,794 Transfer from Capital profits reserve 1,359,000 - 1,359,000 198,036 Transfer from Fund-a-Future reserve - - - 130,000 Adjustment on first-time adoption ofAASB 1028: Employee benefits - (686,671) - (686,671) Transfer from Asset revaluation reserve 798,000 1,100,000 798,000 19,065,496 Surplus from ordinary activities 2,601,297 533,592 2,292,918 979,300 Retained earnings at end of financial year 35,483,012 30,724,715 53,913,873 49,463,955

(c) Nature and Purpose of Reserves:

Asset revaluation reserveRepresents the increase in valuation of land and buildings

Capital profits reserveRepresents the capital value of land and building sold

Fund-a-Future reserve

RESERVES AND RETAINED EARNINGS

Retained Earnings


Represents funds set aside for an accommodation and support program to homeless young people between the ages of 15 and 24.

19



2005 2004 2005 2004$ $ $ $


Note 15 CAPITAL AND LEASE COMMITMENTS(a) Operating lease commitments receivable

Future minimum lease payments due on non-cancellable operating leases

Property - Operating LeasesNot later than one year 1,325,620 899,091 1,152,862 769,792 Later than one year but not later than 5 years 2,012,068 1,062,623 1,690,387 1,005,714 Later than five years 172,599 33,149 21,836 32,349

3,510,287 1,994,863 2,865,085 1,807,855

Motor Vehicles - Finance LeasesNot later than one year - 77,591 - 77,591 Later than one year but not later than 5 years - - - -Less:- future finance charges - (443) - (443)

- 77,148 - 77,148

(b) Capital CommitmentsCapital expenditure commitments contracted for:

Purchase of property 702,000 - - -Capital expenditure projects 798,996 - - -

1,500,996 - - -

PayableNot later than one year 1,500,996 - - -

The property leases are non cancellable leases spanning various terms with rental paid monthly in advance. This covers property leases for Centres and Community Services.

20



2005 2004 2005 2004$ $ $ $

Note 16 Reconciliation of cash

(a)

Cash on hand 15,590 13,739 1,350 1,369 Cash deposits with banks 876,126 1,303,951 (132,248) 168,622 Bank term deposits 21,343,622 17,241,808 9,453,695 6,041,422 Balance per Statement of Cash flows 22,235,338 18,559,498 9,322,797 6,211,413

(b) Reconciliation of cash flow from operations with operating surplus after income tax

Operating surplus from normal activities 2,601,297 533,592 2,292,918 979,300

Cash flows in operating activities but not in operating result

Non-cash flows in operating surplusDepreciation and amortisation 1,811,229 1,831,484 824,577 902,314 Profit on sale of fixed assets (698,582) (656,043) (407,337) (568,888) Loss on sale of fixed assets - 22,708 - 22,708 Residents' accommodation bond retentions (300,263) (262,693) - -Interest deducted from residents' accommodation bond (204,281) (59,072) - -Fixed assets written off 954,597 53,424 - 53,424

Changes in assets and liabilities(Increase)/decrease in receivables (209,397) 371,014 (153,586) 239,995 (Increase)/decrease in inventories 31,854 21,595 25,887 28,115 (Increase)/decrease in prepayments (578,049) (23,620) (599) 22,602 Increase/(decrease) in payables 765,045 (362,877) (19,314) (233,670) Increase/(decrease) in provisions 472,605 677,119 378,377 164,110

Cash Flows from operations 4,646,055 2,146,631 2,940,923 1,610,010

The changes in assets and liabilities used in reconciling the operating surplus after income tax to cash flows from operations do not reconcile to movements in assets and liabilities in the statement of financial position because the movements in 'balance sheet' items include movements relating to non operating activities and the associated impact of GST.

Cash at the end of the financial period as shown in the Statement of Cash flows is reconciled to the related items in the Statement of Financial Position as follows:


21


Note 17

(a) Net fair valuesAll financial assets and liabilities are recorded at net fair value.

(b) Credit risk exposure

(c) Interest rate risk

The economic entity's exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and unrecognised at the report date, are as follows:

The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position.


The economic entity is subject to normal commercial interest rate fluctuations on its bank accounts and money market instruments.

FINANCIAL INSTRUMENTS

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23


Note 18 SEGMENT REPORTING

ST VINCENT DE PAUL SOCIETY INC.

The conferences and councils segment provides assistance to those in need.

ST VINCENT DE PAUL AGED CARE AND COMMUNITY SERVICES


Financial information about the Company's business segments is presented in the schedule on the following page.

There are no inter-segment transactions.

The centres of charity segment sells donated goods.

For management purposes, the Association is organised into two major operating divisions, being centres of charity and conferences and councils. The divisions are the basis on which the Parent entity reports its primary segment information.

For management purposes, the Company is organised into two major operating divisions, being aged careservices and community services. The divisions are the basis on which the Company reports its primarysegment information.

The aged care services segment provides care and accommodation for elderly and disadvantaged citizensthrough a mix of hostels, nursing homes, a day therapy centre and independent living units.

The community services segment operates a range of accommodation and support initiatives for people who experience homelessness; providing help with issues such as general health concerns, drug and alcohol abuse, employment education and training options, and social exclusion and isolation. This segment also includes a domestic violence service and a disability employment service.

Financial information about the Parent entity's business segments is presented in the schedule on the following page.

24


Note 18 SEGMENT INFORMATION Continued

Primary reporting - business segments

Centres of Charity Conferences &

Councils Aged Care Community

Services Elimination Consolidated $ $ $ $ $ $

2005REVENUEFundraising activities 4,742,016 113,497 223,339 5,078,852 Government grants 4,120,873 7,544,767 7,483,490 19,149,130 Sale of goods 13,485,692 265,320 1,081,122 14,832,134 Proceeds on sale of fixed assets 1,448,671 189,925 19,227 938,672 2,596,495 Client / resident fees 3,397,199 302,824 3,700,023 Accommodation bond retentions 312,930 312,930 Accommodation charge 61,124 61,124 Interest received 106,730 243,121 957,458 378,111 1,685,420 Grants received from Centres 2,001,976 (2,001,976) -Grants received from Conferences & Councils -Grants received from parent entity -Refugee Program Recovery Fees 101,703 (101,703) -Sundry income 153,951 9,321 87,025 (21,970) 228,327 Total segment revenue 15,142,796 11,717,182 12,415,523 10,494,583 (2,125,649) 47,644,435

RESULTSegment profit/(loss) 838,785 1,454,133 (222,374) 530,753 2,601,297

ASSETSSegment assets 18,673,428 13,851,953 21,146,295 9,434,317 (472,123) 62,633,870 Unallocated company assets 20,045,397 Consolidated total assets 82,679,267

LIABILITIESSegment liabilities 667,086 1,574,186 10,315,316 735,904 (472,123) 12,820,369 Unallocated company liabilities 1,972,290 Consolidated total liabilities 14,792,659

Depreciation and amortisation of segment assets 518,795 305,782 542,376 444,276 - 1,811,229

Acquisition of non-current segment assets 974,450 416,538 1,097,399 1,770,518 - 4,258,905 ties back into cashflow statement

Centres of Charity Conferences &

Councils Aged Care Community

Services Elimination Consolidated $ $ $ $ $ $

2004REVENUEFundraising activities - 4,689,403 30,043 296,609 (19,027) 4,997,028 Government grants - 2,947,021 6,327,088 6,992,781 - 16,266,890 Sale of goods 12,260,099 258,502 - 1,011,152 (100,568) 13,429,185 Proceeds on sale of fixed assets 235,337 1,890,984 - 293,340 - 2,419,661 Client / resident fees - - 3,484,149 291,991 - 3,776,140 Accommodation bond retentions - - 281,308 - - 281,308 Accommodation charge - - 33,292 - - 33,292 Interest received 101,842 281,489 458,398 365,193 - 1,206,922 Grants received from Centres - 4,570,635 - - (4,570,635) -Grants received from Conferences & Councils 532,530 - - - (532,530) -Grants received from parent entity - - - 130,000 (130,000) -Refugee Program Recovery Fees 313,915 - - - (313,915) -Sundry income 4,204 522,595 249,525 155,096 (558,885) 372,535 Total segment revenue 13,447,927 15,160,629 10,863,803 9,536,162 (6,225,560) 42,782,961

RESULTSegment profit/(loss) 656,604 322,696 (835,463) 389,755 - 533,592

ASSETSSegment assets 17,964,791 12,156,856 27,975,807 8,969,729 (22,123) 67,045,060 Unallocated company assets 12,215,650 Consolidated total assets 79,260,710

LIABILITIESSegment liabilities 797,234 1,333,222 9,753,251 889,694 (22,123) 12,751,278 Unallocated company liabilities 1,224,121 Consolidated total liabilities 13,975,399

Depreciation and amortisation of segment assets 612,408 289,907 480,011 449,158 - 1,831,484

Acquisition of non-current segment assets 1,718,298 4,919,799 696,076 1,182,056 - 8,516,229 ties back into cashflow statement

Secondary reporting - geographic segmentSt Vincent de Paul Society Victoria Inc. operates within Australia.

St Vincent de Paul Aged Care and Community Services operates within Australia.


25


Note 19 ECONOMIC DEPENDENCY

Note 20

(a) The registered office of the Association is;St Vincent de Paul Society Victoria Inc.43 - 45 Prospect Street,Box Hill. Victoria 3128

(b)St Vincent de Paul Society Victoria Inc.43 - 45 Prospect Street,Box Hill. Victoria 3128

The principal place of business is:

ASSOCIATION & COMPANY DETAILS


A significant portion of the subsidiary's revenue is provided by the Commonwealth and State Governments in the form of grants and subsidies.

26

Documents

2004-2005 Financial Report