CatholicCare Victoria Tasmania...Improved program review and evaluation; Optimising staff and financial resources. - 1 - CATHOLICCARE VICTORIA TASMANIA ACN: 150 113 947 DIRECTORS

CatholicCare Victoria TasmaniaACN: 150 113 947

Financial reportFor the year ended 30 June 2019

Pitcher Partners

Level 13, 664 Collins Street, Docklands VIC 3008

p: +61 3 8610 5000

TABLE OF CONTENTS

Directors' report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................1 - 5

Auditor's independence declaration................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................6

Financial report

Statement of profit or loss and other comprehensive income................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................7

Statement of financial position................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................8

Statement of changes in equity................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................9

Statement of cash flows................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................10

Notes to financial statements................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................11 - 16

Directors' declaration................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................17

Independent auditor's report................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................18 - 20

CATHOLICCARE VICTORIA TASMANIAACN: 150 113 947

DIRECTORS' REPORT

The directors present their report together with the financial report of CatholicCare Victoria Tasmania forthe year ended 30 June 2019 and auditor's report thereon.

Directors names

The names of the directors in office at any time during or since the end of the year are:

John Hurren

Tony Fitzgerald

Tim Gourlay (Resigned 28 June 2019)

Netty Horton

Rhonda Lawson-Street (Appointed 17 October 2018)

Sr Patrice Orchard

Peter Richardson (Resigned 7 August 2018)

Paul Velten

Andrew Hill (Appointed 30 September 2019)

The directors have been in office since the start of the year to the date of this report unless otherwisestated.

Short-term and long-term objectives

CatholicCare Victoria and Tasmania ("CCVT") began operation on 1 April 2011. The intention of theArchbishops and Bishops is that CCVT assist the CatholicCare and CentaCare member agencies to improvetheir contribution to the wellbeing of the communities they serve and to provide best practice servicedelivery. The benefits expected from the establishment of CCVT are:

Optimising cooperation between the CatholicCare and CentaCare member agencies;

Delivering of high quality, services and programs to those who are most vulnerable and

disadvantaged;

Improved program review and evaluation;

Optimising staff and financial resources.

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DIRECTORS' REPORT

Principal activities

To carry out the Company's strategies and to achieve its short-term and long-term objectives, the Companyengaged in the following principal activities during the year.

The principal activity of the company during the year was to assist the Catholic Church in the provision tothe needy of welfare by:

(a) The application for, the receipt, allocation and distribution of grants;

(b) Overseeing, monitoring and reporting to providers of Grants on compliance with all relevant conditionsand requirements in respect of the Grants received by the Company;

(c) Liaise with and making recommendations to Governments and others on matters regarding welfare inVictoria and Tasmania;

(d) Encourage collaboration between the CatholicCare and Centacare Agencies and with other welfareagencies of the Church in Victoria and Tasmania; and

(e) At all times act in accordance with the beliefs, traditions and practices of the Church and Church laws.

No significant change in the nature of these activities occurred during the year.

Measurement of performance

To help evaluate whether the activities the Company established during the year have achieved its short-term and long-term objectives, the Company uses the following to measure, analyse and monitor itsperformance:

Overall performance will be measured by reference to the quality assurance process reports, ongoingaccreditation of services by government funding bodies, the extent to which company objectives are met,financial measures and benchmarks of the grant acquittal process.

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DIRECTORS' REPORT

Information on directors

John Hurren Chair of the Board

Qualifications MBA, B Eng, ARMIT, GAICD.

Experience Former Chief Executive Officer of the Catholic Development Fund of theArchdiocese of Melbourne for over 25 years. Was a member of the Boardof MacKillop Family Services for 12 years.

Sr Patrice Orchard Director

Qualifications Bachelor of Arts Psychology/Sociology

Experience Mercy sister with wide experience in Australia and Pakistan Board memberMcKillop Family Services.

Tony Fitzgerald Chief Executive Officer, Centacare Catholic Diocese of Ballarat

Qualifications Bachelor of Accounting, CPA, MAICD

Experience Former Managing Director of State Trustees.-

Tim Gourlay Executive Director, CatholicCare Tasmania

Qualifications Dip of Teaching, Grad. Cert. in Management

Experience Former Head, Capital, Planning and Facilities Management, CatholicEducation Office Tasmania, various Manager positions Department ofEducation.

Netty Horton Chief Executive Officer, CatholicCare Melbourne

Qualifications MA in Public Policy, Churchill Fellowship recipient, Graduate of theAustralian Institute of Company Directors.

Experience Former Territorial Social Programs Director for the Salvation Army,Southern Territory General Manager of Community Services at St Vincentde Paul's Aged Care & Community Services, and CEO of Council toHomeless Persons. Netty has served as Chair of the Ministerial AdvisoryCommittee on Homelessness, and as a member of the Prime Minister'sCouncil on Homelessness.

Rhonda Lawson-Street Director of CatholicCare Sandhurst

Qualifications Bachelor of Arts/Diploma of Social Studies; Master of Social Work;Advanced Studies in Sociology

Experience Experience across a wide range of government, community, and academicsettings. National and state level peak body leadership and Board memberin these roles.

Peter Richardson Former Executive Director of CatholicCare Sandhurst

Qualifications Bachelor of Arts (Recreation), Bachelor of Social Work, Certificate IV inTraining and Assessment, Certificate in Theology and a Master of SocialWork (Human Services Management).

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DIRECTORS' REPORT

Information on directors (Continued)

Paul Velten Director

Qualifications Bachelor of Economics, CPA

Experience Director Finance and Corporate Services, Catholic Archdiocese ofMelbourne.

Andrew Hill Chief Executive CatholicCare Tasmania

Qualifications Bachelor of Commerce (Human Resources Management and MarketingMajors)GAICD

Experience Former Chief Executive Officer Blueline Laundry Inc.Director ANDEB Consulting Pty Ltd.Experience across manufacturing, construction and community sector inHuman Resource Management, Business Improvement and LeadershipDevelopment.

Meetings of directors

Directors Directors' meetingsAudit & Risk

committee meetings

Numbereligible to

attend

Numberattended

Numbereligible to

attend

Numberattended

John Hurren 5 5 - -

Sr Patrice Orchard 5 5 - -

Tony Fitzgerald 5 5 1 1

Tim Gourlay 5 5 - -

Netty Horton 5 4 1 1

Rhonda Lawson-Street 4 4 - -

Peter Richardson 1 1 - -

Paul Velten 5 1 - -

Members guarantee

The Company is incorporated under the Australian Charities and Not-for-profits Commissions Act 2012 and isa Company limited by guarantee. If the Company is wound up, the Constitution states that each member isrequired to contribute to a maximum of $50 each towards meeting any outstandings and obligations of thegroup. At 30 June 2019 the number of members was 5. The combined total amount that members of theCompany are liable to contribute if the Company is wound up is $250.

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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2019

Note 2019 2018

$ $

Revenue and other income

Grants received 17,702,842 16,478,761

Other revenue 6,288 5,489

Other income 840,840 757,792

18,549,970 17,242,042

Less: expenses

Administration expenses (818,305) (787,499)

Grant expenses (17,702,842) (16,478,761)

(18,521,147) (17,266,260)

Surplus / (deficit) before income tax expense 28,823 (24,218)

Other comprehensive income for the year - -

Total comprehensive income 28,823 (24,218)

The accompanying notes form part of these financial statements.

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STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2019

Note 2019 2018

$ $

Current assets

Cash and cash equivalents 3 285,802 215,940

Receivables 4 2,566 21,587

Other assets 5 140,114 66,011

Total current assets 428,482 303,538

Total assets 428,482 303,538

Current liabilities

Payables 6 14,995 7,060

Other liabilities 7 161,035 72,849

Total current liabilities 176,030 79,909

Total liabilities 176,030 79,909

Net assets 252,452 223,629

Equity

Accumulated surplus 8 252,452 223,629

Total equity 252,452 223,629


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STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2019

Retainedearnings Total equity

$ $

Balance as at 1 July 2017 247,847 247,847

Deficit for the year (24,218) (24,218)

Total comprehensive income for the year (24,218) (24,218)

Balance as at 1 July 2018 223,629 223,629

Surplus for the year 28,823 28,823

Total comprehensive income for the year 28,823 28,823

Balance as at 30 June 2019 252,452 252,452


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STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2019

Note 2019 2018

$ $

Cash flow from operating activities

Grants received 19,473,126 18,440,585

Grant expenditure (19,459,043) (18,440,585)

Management fees 875,835 738,543

Payments to suppliers (825,365) (790,821)

Interest received 5,309 7,219

Net cash provided by / (used in) operating activities 69,862 (45,059)

Reconciliation of cash

Cash at beginning of the financial year 215,940 260,999

Net increase / (decrease) in cash held 69,862 (45,059)

Cash at end of financial year 285,802 215,940


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NOTES TO FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2019

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a general purpose financial report that has been prepared in accordance with theAustralian Charities and Not-for-profits Commission Act 2012 and Australian Accounting Standards -Reduced Disclosure Requirements, Interpretations and other applicable authoritative pronouncements ofthe Australian Accounting Standards Board.

The financial report covers CatholicCare Victoria Tasmania as an individual entity. CatholicCare VictoriaTasmania is a Company limited by guarantee, incorporated and domiciled in Australia. CatholicCare VictoriaTasmania is a not-for-profit entity for the purpose of preparing the financial statements.

The financial report was approved by the directors as at the date of the directors' report.

The following are the significant accounting policies adopted by the Company in the preparation andpresentation of the financial report. The accounting policies have been consistently applied, unlessotherwise stated.

(a) Basis of preparation of the financial report

Historical Cost Convention

The financial report has been prepared under the historical cost convention, as modified by revaluations tofair value for certain classes of assets and liabilities as described in the accounting policies.

(b) Going concern

The financial report has been prepared on a going concern basis.

(c) Revenue

Interest revenue is measured in accordance with the effective interest method.

All revenue is measured net of the amounts of goods and services tax (GST).

(d) Contributions - Government Grants

When the entity receives grants but is obliged to give directly approximately equal value to the contributor,recognition of grant income will be deferred until the delivery of service. Grants relating to expense itemsare recognised as income over the periods necessary to match the grant to the costs they are compensating,to the extent these are refundable if unspent.

(e) Income tax

No provision for income tax has been raised as the Company is exempt from income tax under Division 50 ofthe Income Tax Assessment Act 1997.

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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(f) Cash and cash equivalents

Cash and cash equivalents include cash on hand and at banks, short-term deposits with an original maturityof three months or less held at call with financial institutions, and bank overdrafts. Bank overdrafts areshown within borrowings in current liabilities in the statement of financial position.

(g) Goods and services tax (GST)

Revenues, expenses and purchased assets are recognised net of the amount of GST, except where theamount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognisedas part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payablesin the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component ofinvesting and financing activities, which are disclosed as operating cash flows.

(h) Comparatives

Where necessary, comparative information has been reclassified and repositioned for consistency withcurrent year disclosures.

NOTE 2: ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE

The AASB has issued a number of new and amended Accounting Standards and Interpretations that havemandatory application dates for future reporting periods, some of which are relevant to the Company. TheCompany has decided not to early adopt any of these new and amended pronouncements. The Company'sassessment of the new and amended pronouncements that are relevant to the Company but applicable infuture reporting periods is set out below.

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AASB 16: Leases (applicable for annual reporting periods commencing on or after 1 January 2019).

AASB 16 will replace AASB 117: Leases and introduces a single lessee accounting model that will require alessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12 months,unless the underlying asset is of low value. Right-of-use assets are initially measured at their cost and leaseliabilities are initially measured on a present value basis. Subsequent to initial recognition:

right-of-use assets are accounted for on a similar basis to non-financial assets, whereby the right-of-useasset is accounted for in accordance with a cost model unless the underlying asset is accounted for on arevaluation basis, in which case if the underlying asset is:

i. investment property, the lessee applies the fair value model in AASB 140: Investment Property tothe right-of-use asset; or

ii. property, plant or equipment, the lessee can elect to apply the revaluation model in AASB 116:Property, Plant and Equipment to all of the right-of-use assets that relate to that class of property,plant and equipment; and

(b) lease liabilities are accounted for on a similar basis as other financial liabilities, whereby interestexpense is recognised in respect of the liability and the carrying amount of the liability is reduced toreflect lease payments made.

AASB 16 substantially carries forward the lessor accounting requirements in AASB 117. Accordingly, underAASB 16 a lessor would continue to classify its leases as operating leases or finance leases subject towhether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership ofthe underlying asset, and would account for each type of lease in a manner consistent with the currentapproach under AASB 117.

The adoption of AASB 16 is not expected to have on initial application a material impact on the Company’sfinancial statements.

AASB 1058: Income of Not-for-Profit Entities, AASB 2016-7: Amendments to Australian AccountingStandards - Deferral of AASB 15 for Not-for-Profit Entities and AASB 2016-8: Amendments to AustralianAccounting Standards – Australian Implementation Guidance for Not-for-Profit Entities (applicable forannual reporting periods commencing on or after 1 January 2019).

AASB 1058 replaces the income recognition requirements in AASB 1004: Contributions applicable to privatesector not-for-profit entities with a model based on the principles of AASB 15: Revenue from Contracts withCustomers. Consequently, AASB 1058 requires private sector not-for-profit entities to recognise all revenuefrom contracts with customers when the related performance obligations are satisfied, irrespective ofwhether the ultimate beneficiary of the goods or services provided by the not-for-profit entity is the grantorof the funds or another entity. An agreement involving a not-for-profit entity would be classified as acontract with a customer if the agreement:

(a) creates enforceable rights and obligations between the parties; and

(b) includes a promise by the not-for-profit entity to transfer a good or service that is sufficiently specificfor the entity to determine when the obligation is satisfied.

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For contracts with customers that comprise a donation component, AASB 1058 requires such componentsto be treated as part of the performance obligation(s) unless the entity can demonstrate that component isnot related to the promised goods or services.

When an arrangement does not meet the criteria for a contract with a customer, the inflows are accountedfor in accordance with AASB 1058, which requires:

(a) the asset received by the not-for-profit entity to be accounted for in accordance with the applicableAustralian Accounting Standard; and

(b) any difference between the consideration given for the asset and its fair value to be recognised inaccordance with its substance (such as a contract liability, a financial instrument and/or a contributionby owners), and any residual amount recognised as income.

However, AASB 2018-8 provides a temporary option for not-for-profit entities to not apply the fair valueinitial measurement requirements for right-of-use assets arising under leases with significantly below-market terms and conditions principally to enable the entity to further its objectives. Electing to initiallymeasure such right-of-use assets at cost rather than fair value has the corresponding effect of reducing theamount of income recognised by the entity under AASB 1058.

AASB 1058 also permits a not-for-profit entity to recognise volunteer services as an asset or expense (asapplicable) and any related contributions by owners or revenue as an accounting policy choice, providedthat the fair value of the services can be measured reliably.

The adoption of AASB 1058 is not expected to have on initial application a material impact on the Company’sfinancial statements.

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2019 2018

$ $

NOTE 3: CASH AND CASH EQUIVALENTS

Cash at bank 285,802 215,940

NOTE 4: RECEIVABLES

CURRENT

Other receivables 2,566 21,587

NOTE 5: OTHER ASSETS

CURRENT

Prepayments 140,114 66,011

NOTE 6: PAYABLES

CURRENT

Unsecured liabilities

GST payable 14,995 4,802

Accruals and other creditors - 2,258

14,995 7,060

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2019 2018

$ $

NOTE 7: OTHER LIABILITIES

CURRENT

Deferred income 161,035 72,849

NOTE 8: ACCUMULATED SURPLUS

Accumulated Surplus at beginning of year 223,629 247,847

Surplus/(deficit) 28,823 (24,218)

252,452 223,629

NOTE 9: RELATED PARTIES

(a) Related Diocese Agencies

The following diocese are the related agencies for CatholicCare Victoria Tasmania:

- Centacare Ballarat

- CatholicCare Melbourne

- CatholicCare Sandhurst

- CatholicCare Tasmania

NOTE 10: MEMBERS' GUARANTEE

There are five members as at 30 June 2019. Each member has undertaken to contribute $50 upon windup ofthe company.

NOTE 11: COMPANY DETAILS

The registered office of the Company is:

CatholicCare Victoria Tasmania

383 Albert Street

East Melbourne Victoria 3002

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INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF CATHOLICCARE VICTORIA TASMANIA

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of CatholicCare Victoria Tasmania, "the Company", which comprisesthe statement of financial position as at 30 June 2019, the statement of profit or loss and othercomprehensive income, statement of changes in equity and statement of cash flows for the year thenended, and notes to the financial statements, including a summary of significant accounting policies, and thedirectors' declaration.

In our opinion, the accompanying financial report of CatholicCare Victoria Tasmania, is in accordance withDivision 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

(a) giving a true and fair view of the Company’s financial position as at 30 June 2019 and of its financialperformance for the year then ended; and

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and Division 60 ofthe Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report sectionof our report. We are independent of the Company in accordance with the Australian Charities and Not-for-profits Commission Act 2012 "ACNC Act" and the ethical requirements of the Accounting Professional andEthical Standards Board’s APES 110 Code of Ethics for Professional Accountants "the Code" that are relevantto our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities inaccordance with the Code. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.

Other Information

The directors are responsible for the other information. The other information comprises the informationincluded in the Company’s annual report for the year ended 30 June 2019, but does not include the financialreport and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not expressany form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and,in doing so, consider whether the other information is materially inconsistent with the financial report orour knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.

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INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF CATHOLICCARE VICTORIA TASMANIA

Responsibilities of Management and Those Charged with Governance for the Financial Report

Management is responsible for the preparation and fair presentation of the financial report in accordancewith the financial reporting requirements of the ACNC Act and for such internal control as managementdetermines is necessary to enable the preparation and fair presentation of a financial report that is freefrom material misstatement, whether due to fraud or error.

In preparing the financial report, management is responsible for assessing the Company’s ability to continueas a going concern, disclosing, as applicable, matters relating to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to cease operations, orhas no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includesour opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with the Australian Auditing Standards will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe aggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professionaljudgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence

that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a

material misstatement resulting from fraud is higher than for one resulting from error, as fraud may

involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal

control.

Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.

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Documents

CatholicCare Victoria Tasmania...Improved program review and evaluation; Optimising staff and financial resources. - 1 - CATHOLICCARE VICTORIA TASMANIA ACN: 150 113 947 DIRECTORS