ORANA GARDENS€¦ · Dianne Bayliss, as our Director of Care. Mrs Bayliss has made good progress in a short period of time in the position. Special thanks also to Mrs Evelyn Quade

ORANA GARDENS

2011

ANNUAL REPORT

“Caring for you”

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Orana Gardens Lodge Orana Gardens Retirement Village Corner of Windsor Parade and Coronation Drive Windsor Parade, Royal Parade, Charles Crescent and DUBBO NSW 2830 Coronation Drive 77 place aged care facility including: DUBBO NSW 2830 35 bed dementia specific unit 148 independent living units including: 40 bed hostel accommodation 140 x 2 bedroom units 2 respite places available 8 x 1 bedroom units Orana Gardens John Whittle House Orana Gardens Country Club Windsor Parade Corner of Charles Crescent and Coronation Drive DUBBO NSW 2830 DUBBO NSW 2830 64 bed high care – respite available Fully equipped recreation centre for the residents and kindred organisations use, including: Bellhaven Aged Care Facility - Indoor heated swimming pool and spa Warruga Place - Bowling green WELLINGTON NSW 2820 - Snooker table 46 bed high care facility – respite available - Dance floor

Orana Gardens Child Care Centre 8 Goode Street

DUBBO NSW 2830 40 places including:

4 places for ages 6 weeks to 2 years 16 places for ages 2 years to 3 years 20 places for ages 3 years to 6 years

Pre-school program

LIST OF LOCATIONS

For more information:

www.oranagardens.com.au or

Phone 02 6885 6270

http://www.oranagardens.com.au/

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MISSION To promote a positive outlook on ageing, provide accommodation and care services of the highest quality and to respect the rights of each individual member of society regardless of ethnic background or creed by upholding in total, the values of the Dubbo RSL Aged Care Association.

VISION An Aged Care Facility providing high quality residential and community aged care and retirement village living that satisfies the growing demands of all sections of the elderly community within Dubbo and the Orana Region with dignity and respect to all such individuals.

VALUES • Integrity by placing it above all else; • Natural justice by ensuring processes and practices reflect fairness and equity; • Non Discriminatory by advocating the rights and freedoms of individuals and

families and promotes actively, a positive image to ageing with dignity, value and respect and upholds all moral and ethical values regardless of ethnic background or creed;

• Total Commitment by recognising the importance of customers by the provision of care and accommodation to meet customer needs and with this priority and using the principles of consultative and consumer focused liaisons, endeavour to fulfil need through constructive and objective planning and service delivery;

• Commitment to Community of Interest by using the principles of logical analysis to evaluate, uphold and promote the care and accommodation options for the retiree, frailer elderly people including ex service men and women and their wives and husbands by providing a comprehensive range of services to meet their needs;

• Leadership by setting clear directions regarding consultation with all stakeholders and supporting the workforce to achieve agreed outcomes;

• Trust by fostering meaningful communication and building effective relationships between clients, workforce and areas of interest;

• Commitment from the workforce, to the clients, by recognising and rewarding performance and contribution;

• Innovation by exploring new models of service delivery, encouraging and recognising workforce initiatives and consulting with researchers and other practitioners.

• Openness by consulting with the ex-service and general community and providing relevant information

• Flexibility and Responsiveness by supporting team work, critical reflection and a focus on individual needs

• Accountability by requiring effective monitoring, reporting and actions across the organisation.

MISSION, VISION AND VALUES

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•

Page Number

Mission, Vision and Values ………………………………………………………………………….. ………….. 3 Chairman’s Report …………………………………………………………………………............................ 5 Board Members ………………………………………………………………….…………………………………... 7 Chief Executive Officer’s Report ………………………………………………………………….. .............. 8 Finance Manager’s Report ……………………………………………………………………………………….. . 10 Financial Snapshot ………………………………………………………………………………………. .............. 11 Director of Care Service’s Report – Dubbo ……………………………………………………………….. 12 A Year of Memories …………………………………………………………………………………………………. 14 Director of Care Service’s Report – Bellhaven …………………………………………………………… 15 Orana Gardens Retirement Village Manager’s Report ……………………………………………… 17 Orana Gardens Child Care Centre Director’s Report …………………………………………………. 18 Human Resources Manager’s Report ……………………………………………………………………….. 20 General Service Manager’s Report …………………………………………………………………………… 21 Media Officer’s Report …………………………………………………………………………………………….. 22 Financial Statements ……………………………………………………………………………………………….. 23

CONTENTS

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I am pleased to present the Chairman’s Report for 2011. I refer you to the accounts of the Association as outlined in the Annual Report. The Association recorded an operating surplus before impairment of $631,538. Each year the Directors of the Association consider the value of matters such as intangible assets. Intangible assets consist mainly of bed licences as required by the Association to operate. Bed licences are either purchased by the Association or provided by the Government. The total bed licence value was $5,925,000 at 31st December 2010. The pending Productivity Commission Report has created uncertainty on the value of bed licences in the future and therefore there is no market activity or value for them. The Board of Directors resolved to write down the assets of the Association by $5,925,000 which represents the full carrying value of all the bed licences held by the Association. An adjustment of the Association’s asset value was required, which is reflected in a decrease in the balance sheet equity and the profit and loss statement. An abnormal writeback for this year only of $996,510 is reflected in the profit and loss statement, resulting in a deficit for the year. This is only an accounting adjustment and the Association’s cash position is not affected. As highlighted above, the operating surplus of the Association prior to impairment adjustment is $631,538. As highlighted above, 2011 was a much improved trading year than 2010, with a stated above average surplus of $631,538 before impairment. This was due mainly to our investment interests and a good result from our Bellhaven facility in Wellington and our Orana Gardens Child Care Centre. On behalf of the Board and myself I wish to welcome to our Bellhaven facility in Wellington Mrs Dianne Bayliss, as our Director of Care. Mrs Bayliss has made good progress in a short period of time in the position. Special thanks also to Mrs Evelyn Quade who has been with the Association for many years and has recently been appointed Director of Care for the Dubbo facility, following the resignation of our previous Director of Care Mr Stephen Evans. The Board and myself appreciate the fine efforts of our Management Team and would like to recognise and thank:

- Mr Damian Moore, Chief Executive Officer, for his dedication of service. - Finance Manager, Ms Lyndal Mawbey, who has changed the structure of our finance

planning. - Mr Grahame Marchant, although retired, has been a monumental help to the

Association. I thank you for your support and assistance. - The 2011 Management Team of Damian Moore, Evelyn Quade, Dot Vanderwilt,

Dianne Bayliss, Sue Trudgett, Paula Kearns, Grahame Marchant, David Linton, Rebecca McDonald, Brooke Parsons, Miriam Mutasa, Carolyn Temessl, Cherie Higgs, Jack Pedron and Ray Hewett who have all contributed to making 2011 a successful year. Thank you for your continued support.

CHAIRMAN’S REPORT

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- The Support Management Team of Catherine Brook (Finance Officer), Sara Nixon

(HR/Payroll Officer), Paul Mastronardi (Workplace Trainer and Assessor), Michael Russell (Country Club Function Coordinator) and Lyn Hall.

- Our Team Leaders Trish Williams, Loretta Olliver, Deidre Miller, Beth Dorin and Merly Watson.

I would also like to make a very special mention to our care staff for the great support you give to our residents. On behalf of the Board and Management, I thank all our volunteers in both Wellington and Dubbo who have supported the Association for many years. Your continued efforts are greatly appreciated. To our kindred organisations of the Dubbo Sub-Branch of the RSL, Dubbo RSL Women’s Auxiliary and the Dubbo RSL Memorial Club who have continued to support and assist to the Association during 2011, thank you. To my fellow Board Members, I sincerely thank you for your time and attendance to the committee meetings and dedication shown to the Association, as well as your ongoing support to myself in the role as Chairman.

Mr Jim Lang Chairman

CHAIRMAN’S REPORT [cont]

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BOARD MEMBERS

CHAIRMAN

Mr Jim Lang Director since 2002 Occupation: Retired

TREASURER

Mr Earl McManus Director since 2001 Occupation: Retired

Mr Geoffrey Holland Director since 1998 Occupation: RSL Memorial Club Secretary Manager

VICE PRESIDENT VICE PRESIDENT

Mr Ross Graham Director since 1999 Occupation: Retired

Mr Tony Kelly Director since 2007 Occupation: Retired

ASSISTANT TREASURER

DIRECTOR DIRECTOR

Dr David E. B. Schuster Director since 2005 Occupation: Grazier/Anaesthetist

Mr William Greenwood Director since 2010 Occupation: Retired

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The Association has faced many challenges and seen many successful outcomes during 2011. In June 2011, Orana Gardens completed a three day site audit as part of the accreditation process. I am pleased to advise that Orana Gardens achieved 44 out of 44 outcomes to ensure a further 3 year accreditation period. Acknowledgement and thanks must go to Evelyn Quade, Miriam Mutasa, Cherie Higgs and their teams for their hard work and dedication leading up to and during the site audit. The auditors commented on the excellent care that the staff provide for the residents of Orana Gardens. Once again, well done to all involved. Also in June 2011, the Orana Gardens Child Care Centre completed its first spot accreditation audit since the centre opened. I am pleased to advise the Centre passed the audit, with the auditor commenting on how well the centre was being operated. The Child Care Centre has also had a successful year both in terms of operating at 100% occupancy, providing high quality child care services and returning an operational surplus for 2011. Congratulations to Paula Kearns and her team on 2011 being a successful year. The Association improved its “green” credentials during 2011 with the installation of solar panel systems to all 148 independent living units. The benefit to the Village Residents from the electricity generated by the solar panels is estimated to be between $500 and $600 per annum. The Association is extremely proud of its achievements in installing the solar panel systems and the benefits it will bring for all Village Residents, both now and into the future. On the 28th of June 2011 the Productivity Commission released its report called “Caring for Older Australians”. The aim of the report was to address the challenges of an ageing population, increase in aged related disability and disease, especially dementia and the decline in the work force at a time when an increased number of carers will be required. To address some of these challenges the Productivity Commissioner has suggested such changes as user pays systems, removal of the cap on bed licenses to encourage new services to be constructed and improved rates of pay for nursing and other care staff. The aged care industry has voiced its support of the recommendations of the Productivity Commission and we all now wait for those recommendations to be adopted by the Federal Government in the 2012 budget. Another significant challenge for the Association during 2011 has been the retention and recruitment of registered nurses. During 2011, the Association was forced to use an agency registered nurse at a significant cost to ensure the required level of care was maintained. In order to address this challenge the Association worked closely with a number of recruitment firms to recruit two new registered nurses. To assist with attracting professional staff the Association purchased a set of duplexes which are located in Birch Avenue, which is a short walk from the Orana Gardens complex. The duplexes have been renovated, are fully furnished and they are currently occupied by registered nurses employed by the Association. During 2011 the Association appointed a number of new staff members to the senior management team. Mrs Evelyn Quade was appointed as the Director of Care Services for Orana Gardens. Evelyn was previously the Deputy Director of Care and Acting Director of Care before taking on the role of Director of Care. Mrs Dianne Bayliss was appointed as Director of Care for Bellhaven. Dianne comes to the Association with great experience in the aged care sector and we

CHIEF EXECUTIVE OFFICER’S REPORT

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welcome Dianne to the Association. In April 2011, the Association appointed Ms Lyndal Mawbey as the new Finance Manager. Finally, Mr. David Linton was appointed to the position of General Services Manager. David’s role involves the supervision of the catering, cleaning, laundry and maintenance services for both the Orana Gardens complex and Bellhaven. The management team of Evelyn Quade, Miriam Mutasa, Brooke Parsons, Cherie Higgs, Dianne Bayliss, Dot Vanderwilt-Todd, Carolyn Temessl, David Linton, Lyndal Mawbey, Catherine Brook, Sue Trudgett, Rebecca McDonald, Jack Pedron, Ray Hewitt and Paula Kearns have all contributed to making 2011 a successful year. Thank you for your hard work, dedication and effort. To the Association’s other management teams and staff members, my personal acknowledgement and sincere thanks for all your hard work, dedication and effort during 2011. Thank you and keep up the good work in 2012 and beyond. The Association’s financial report, which forms part of this annual report, shows a operational loss for the period ending 31st December 2011 of $364,972. This result includes an impairment of our bed licences asset of $996,510. Excluding this impairment write down the operational profit for the year was $631,538. The 2011 operational profit has seen strong growth from the 2010 operational profit of $300,138. The Association’s management team, with the support of the Board of Directors, has worked hard during 2011 to implement a number of strategies to ensure the care services provided was of a high standard whilst maintaining these services in a sound financial manner. To the Orana Gardens Retirement Village Forum Committee, ably lead by Mr. Ray Winslow and Mrs Anne Engeler, a sincere thanks to you and your committee for making 2011 another successful year. The Association’s management team looks forward to our good working relationship continuing into the future. To the Association’s kindred organisations, Dubbo RSL Sub Branch, Dubbo RSL Women’s Auxiliary and the Dubbo RSL Memorial Club, thank you again for your continued donations and support during 2011. A special mention to the Dubbo RSL Sub Branch for your continued annual donation to the Association as it is very much appreciated. The Association is also fortunate to have many volunteers across its complexes, who not only assist in enhancing the quality of life to our residents, but also assist our very busy care staff in so many ways. Your assistance, your thoughtfulness and your caring ways is very much appreciated. Once again, thank you for your continued support during 2011. On a personal note I would like to take this opportunity to personally thank the chairman, Mr. Jim Lang and the other members of the Board of Directors for their faith, encouragement and support in my role as C.E.O. I must also acknowledge and thank the Board of Directors for the many volunteered hours they contribute to the Association to ensure the corporate governance and direction are well managed.

Damian Moore B.Com / LLB CPA Chief Executive Officer

CHIEF EXECUTIVE OFFICER’S REPORT [cont]

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Although our operating result is a loss of $(364,972), this result includes an impairment of our bed licences asset of $996,510. Extracting that impact we had a strong financial result of $631,538 - being a 100% increase on our 2010 performance. This was a result of focussed attention and understanding the funding model across our facilities in Dubbo and Wellington, an extraordinary second year of operation of our Orana Gardens Childcare Centre, managing economies of scale and maximising benefits through our new General Services business unit and prudent management of our Orana Gardens Retirement Village. Revenue and Expenditure Revenue increased by 8% on the previous year. Our fees for services grew by $646,000, with our childcare centre becoming fully utilised and increasing its revenue 72% on 2010. Aged Care subsidies grew by $467,000. Staff costs increased by 7% as a result of the usual inflationary index, increased staffing as our childcare business grew and a management restructure of our residential aged care facilities to include a dedicated Director of Care at both our Dubbo and Wellington facilities. Property costs $1,489,000 focus on an improvement on management of costing of services and major works maintenance requests, having invested $107,000 in refurbishments across our Retirement Village and residential facilities including external painting of Stage 1 and Stage 2 in our Retirement Village. Balance Sheet There is a reduction in our balance sheet as we proactively assessed upcoming changes resulting from the Productivity Commission report on Aged Care which includes the deregulation of Aged Care residential facilities. The impact of this change is bed licences will reduce in value and we will be reassessing this situation over the next five years as industry changes are implemented. Prudential Requirements Our cash reserves are monitored constantly throughout the year for compliance with our Liquidity Management Strategy and accommodation bond prudential requirements ensuring the Association is financially sound and able to meet the repayment of resident bonds and loans. Capital Expenditure During the year $829,000 was reinvested back into improving care services to our residents through the upgrading and replacement of plant and equipment and major capital investments for the year include replacing the flooring in our Special Care Unit and John Whittle House, introduction of defibrillators at all our facilities, solar panels in the Retirement Village, purchase of two units to attract and accommodate Registered Nurses and a major bed replacement program across all our facilities. 2012 Outlook We anticipate continued strong performance and high quality service delivery across all business units and our attention will be focussed on navigating the impacts and uncertainties of the Productivity Commission reforms to strengthen our position into the future ensuring continuity of care. I would like to acknowledge and thank Catherine Brook for her commitment and contribution throughout the year.

Lyndal Mawbey Finance Manager

FINANCE MANAGER’S REPORT

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What we earned $’000 Government Aged Care Subsidies 8,980 Fee for Service Income 5,857 Investment Income 545 Other Income 42 Donations 127 Other Grants & Subsidies 95 --------- Total Income 15,646

What we spent $’000 Staff Costs 11,029 Property (incl depreciation) 1,489 Catering,Laundry,Cleaning 781 Administration & General Operating 1,063 Medical & Client Supplies 653 Bed Licence Impairment 997 --------- Total Expenditure 16,011

What we own $’000 Land & Buildings 24,330 Cash & Deposits 9,016 Plant & Equipment 1,384 Debtors 379 Intangibles 3 --------- Total Assets 35,112

What we owe $’000 Retirement Village Loans 15,423 Residential Accommodation Bonds 5,225 Provisions 1,700 Creditors 771 --------- Total Liabilities 23,118

FINANCIAL SNAPSHOT

What we earned

Investment Income

Other Income

Donations

Fee for Service Income

Government Subsidies (Aged Care)

Other Subsidies & Grants

What we spent

Hotel Services (Catering, Laundry, Cleaning)

Administration & Interest

Medical and Client Supplies

Property (including depreciation)

Bed Licence Impairment

Staff Costs

What we own

Debtors Cash & Deposits

Plant & Equipment Land & Buildings

What we owe

Creditors

Provisions

Residential Accommodation Bonds

Retirement Village Loans

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At Orana Gardens we provide care for 141 aged care residents, 54 beds allocated to High Care Nursing home, 45 beds allocated to High Care Dementia Specific and 42 to Low Care Hostel. We strive to promote a positive outlook on ageing and provide accommodation and care services of the highest quality. Another year has passed in the life of Orana Gardens, a year in which we have seen a lot of changes and had some challenges. We continue to provide excellent quality care at Orana Gardens as our residents care and quality of life is our main priority. Occupancy average for the year 2011 has been high at 96.5% with the average age of the residents sitting at 88.5years of age our youngest resident at the moment is 61 years and we are very proud to say that we have 4 residents who will be celebrating their 102nd birthdays in 2012. These residents have lots of stories to tell of their life experiences and they are always very interesting to listen to. Leisure and Lifestyle At Orana Gardens we are one big family, your Family is our Family. We have a hectic activity calendar for each of the areas of the facility. Staff work very hard to provide activities that stimulate and meet the needs of our residents based on their comprehensive social and lifestyle histories to ensure we cater for all the needs and interests of the residents. Family and friends of the residents are as much part of the whole team at Orana Gardens. We look after the residents in a holistic manner by involving the relatives in the whole process and make them feel very welcome and needed, without your input we would not be able to continue to improve and strive towards achieving the best outcomes for our residents. We value you and thank you. Volunteers At the moment we have volunteers assisting us at Orana Gardens. They are a very valuable asset to the facility. The residents benefit from their visits, some just sit and have a chat, others sing and play instruments, weekly sing-a-long on Friday’s is a highlight for the residents. The volunteer’s contribution and dedication to Orana Gardens is greatly appreciated by the Association. They give freely of their time and assist with the delivery of many activities across the facility. We are always seeking assistance from volunteers so please feel free to contact the facility. Partnerships in the local community We work very closely with Commonwealth Carer Respite and Carelink Centre, who manage our respite beds, two low care rooms at the hostel and one high room in John Whittle House. During the year we allocated one of our single rooms in John Whittle House specifically to respite so as to be able to offer high care respite to both male and female residents. Staff from Commonwealth Carer Respite and Care Link centre kindly donated a 32 inch TV specifically for the room and we thank them for their generous contribution. Palliative Care Early in 2011 we established a room specifically for Palliative Care. It is a comfortable area that can be used by the family to can spend quality one on one time with their loved one, the room

DIRECTOR OF CARE SERVICES – ORANA GARDENS DUBBO FACILITY REPORT

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includes a kitchenette and has direct outside access. Families can spend time with their loved ones in the privacy of the room and they are free to come and go as they please and sleeping over is also possible. Accreditation One of our major achievements for the year of 2011 was of course Accreditation which comes around every 3 years but can be a very stressful time for all staff involved but we passed with flying colours meeting all the requirements for the 44 standards. A big thank you to all the Managers and staff for their long hours, efforts and support over the period in the lead up to accreditation and since. Culture of Excellence training We had a culture of excellence program introduced in October which was a major team and staff morale building program which the staff adapted to really well and I can say that I have a fantastic team of staff working alongside and underneath me. The staff at Orana Gardens are very dedicated to what they do and take pride in the work that they do providing quality care to our residents. It is a pleasure to come to work as my team make working here a very special place to work. We are resident focused and strive to make the residents feel like they are in their own home and that we are visitors who are privileged to come into their home. Fundraising and Donations During 2011 Orana Gardens held many fundraising events and raffles. All monies have been gratefully received and they have allowed us to provide better services to all our residents at the facility. Challenges As with every job there are challenges Aged Care funding Instrument (ACFI) being one where we are always striving to maximise our funding so as we can provide the best quality care to our residents. Recruitment of Registered Nurse over the last 12 months has been a challenge also but with a lot of hard work we have attracted wonderful Registered Nurses to work with us at Orana Gardens. We have registered Nurses on duty 24 hours per day. Occupational Health and Safety now known as Work Health and Safety. We have worked and will continue to address the requirements of the new Work Health & Safety Regulations which have come into force on 1st January 2012. Staff education and policy reviews being of paramount importance. Looking forward to 2012, we will continue to provide excellent quality care for all the residents that are currently in our care and to the residents that will come into our care over the coming 12 months. I look forward to working with everyone through the next 12 months. I would like to personally thank each and every staff member for their continued support and hard work over the last 12 months. Too many names to mention all but just know that you are valued and very much appreciated.

Evelyn Quade Director of Care Services

DIRECTOR OF CARE SERVICES – ORANA GARDENS DUBBO FACILITY REPORT [cont]

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A YEAR OF MEMORIES

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Bellhaven Aged Care facility is a 46 bed high care facility, with 15 dementia specific single rooms, a palliative care room and a single room for our respite clients. Bellhaven is situated in Wellington NSW with views overlooking the mountains and town. At Bellhaven we aim at providing an environment which feels like the residents’ own home, by ensuring it contains not only their personal ‘prized’ possessions, but furniture they can relate to, and a warm and friendly family orientated atmosphere Due to being situated in a smaller country town the majority of our residents and staff know each other, which gives us the ability to maintain a unique and friendly environment within our local community. With this added dimension of familiarity our staff passionately keep up to date with current trends in care by attending educational opportunities, in order to provide individuality to our residents’ needs and desires. During the last twelve months Bellhaven has seen many changes including the appointment of myself as full time Director of Care Services. I bring to the facility many years experience as a registered nurse and educator in aged care, a PhD in dementia care and a depth of experience in business and operational management. I look forward to working with the excellent team at Bellhaven in 2012 to improve the already high quality of care provided to our residents and their families We have introduced new cognitive and multi sensory therapies for the residents such as computer training and access to the internet, a vegetable garden cared for by the residents, doll therapy and pet therapy. However, we have also retained all of the resident’s favourite activities including bus trips, BBQs, craft, volunteers and community visitors who entertain our residents on a regular basis

DIRECTOR OF CARE SERVICES– ORANA GARDENS BELLHAVEN FACILITY REPORT

The care staff have undergone intense training during the last 12 months in order for Bellhaven to become even more specialized in areas such as palliative care. Eight of the care staff have become Care Team Leaders, allowing them to take on many of the responsibilities of a Registered Nurse. They have taken on their extra role and responsibilities professionally and with enthusiasm.

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Future plans for 2012 include:

• more activities specifically designed for male residents; • bringing the rural life and memories to Bellhaven, by having a miniature horse for the

residents which they can care for and enter into local shows • redecorating Bellhaven to have a 1930’s theme the residents can relate to, including

their own hair salon; • developing a ‘fee for service’ program to clientele within the local Community for work

such as mowing lawns and cleaning which will allow for our ageing community members to stay at home longer.

• starting our own training program for staff undertaking the Certificate III in Aged Care, with five staff already planned to commence

In 2012 at Bellhaven, our aim is to develop more activities to involve our residents with the local community, by offering various groups to come in and gain work experience including local schools, TAFE and Corrective Services. We believe everyone deserves an opportunity to grow and develop. None of this would be possible without the dedicated team we are blessed with at Bellhaven. Bellhaven is here for the whole community and I welcome all enquiries, questions and visitors.

Dianne Bayliss Director of Care Services

DIRECTOR OF CARE SERVICES– ORANA GARDENS BELLHAVEN FACILITY REPORT [cont]

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Orana Gardens Retirement Village is conveniently located in East Dubbo, across the road from Dubbo’s major shopping complex, emergency services and medical centre. The village is bordered on the north side by Elizabeth Park. This site contains Dubbo’s botanic gardens where residents are able to enjoy walks through a Biodiversity Garden, Shoyoen Japanese Garden and the new Sensory Gardens. Orana Gardens Retirement Village is made up of 148 independent living units. There were 182 residents in the Village community in 2011. Nine units were sold and twelve new residents were made welcome to the Village.

Our residents continue to say that the Retirement Village is a wonderful place to live and call home. Country Club activities and functions enjoyed by our residents in 2011 included an Australia Day celebration, Queensland flood appeal morning tea, St Patrick’s Day luncheon, Mother’s Day luncheon, Christmas in July luncheon and the viewing of the real Melbourne Cup. Other activities include lawn bowls, swimming in the heated indoor pool, tai chi, monthly birthday barbeque and bingo get togethers, knit and natter social group, cards, and regular bus outings. Croquet commenced at the Country Club bowling green and our residents enjoy this new activity. In 2011 the Country Club accommodated staff graduations, wakes, special birthday events, staff training sessions and more residents taking advantage of the Country Club bistro.

The resident’s social committee held their annual Spring Fair, donating proceeds to Early Childhood Intervention and purchasing equipment for John Whittle House - we congratulate them on their success. Solar panels were installed on all 148 units in the Village and residents are receiving benefits from the energy generated by this system. There was a strong focus in deferred maintenance this year which included the external painting of two stages of the Village. We acknowledge and thank our maintenance team who committed to perform the work, while staying on top of new requests. 2011 saw changes in the retirement village regulation which required an annual safety audit of all our village units and this was successfully completed. A few of the things that are planned for 2012 include:

• continuing with the external painting of the village units, • undergo a facelift of the Country Club, • the trial of a recharge fitness class for Village residents, • new activities and events that will contribute to the lifestyle of the residents.

I thank all staff within the Association and residents in the Village for their continued support and understanding.

Sue Trudgett Retirement Village Manager

ORANA GARDENS RETIREMENT VILLAGE MANAGER’S REPORT

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The staff at Orana Gardens Child Care Centre & Preschool are very enthusiastic and take pride in achieving high quality care to all children and their families. Orana Gardens Child Care Centre is a 40 place centre that caters for children ranging from 6 weeks to 6 years of age and we are open from 7am until 6pm.

• The Ladybeetles room is for 4 children from 6 weeks to 2 years of age who have their own cot room and a trained staff member to care for their social, emotional and developmental needs.

• The Bumble Bee room caters for 16 children between the ages of 2 and 3. The trained staff in this room provide experiences based on the children’s interests.

• The Butterfly room caters for 20 children aged from 3 to 5 years. There is a 4 Year University degree trained teacher and another trained staff member in this room which also offers a full Preschool program, focusing on transition to school, literacy, numeracy, science and music.

Fees are covered by the government child care benefits and rebates which reduces out of pocket expenses. The fees cover qualified forward thinking staff, all meals, first aid, sunscreen and linen in an innovative centre with modern resources. All staff at Orana Gardens Child Care Centre are qualified in the guidance of the Education and Care Services National Law Application, Act 2010 – a National Law to Regulate Education and Care Services for Children. At Orana Gardens Child Care Centre we provide an environment which is friendly and home like and allow your children to play and explore where they feel safe, secure and respected. All meals are provided by Orana Gardens Child Care Centre and are prepared and delivered daily by the qualified kitchen staff at the Dubbo RSL Aged Care Association Country Club. Children’s dietary needs are catered for to the best of our ability. All experiences provided at Orana Gardens Child Care Centre will be based on your child’s interests and may happen spontaneously. Programs are also influenced by the Emergent Curriculum, the EYLF and the Being-Belonging-Becoming programs. Play is now well recognised for its potential power and influence on a child’s development. We believe that our centre reflects an aesthetically pleasing environment that fosters a program enhanced through the EYLF that enhances children’s development in all areas and where all children are treated equally. We provide an environment that welcomes families and children to become an active part of our centre. The highest quality of care is obtained through quality teaching and child care, appropriate resources, community support and through strong parental involvement.

ORANA GARDENS CHILDCARE CENTRE DIRECTOR’S REPORT

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Accreditation The big achievement for 2011 was the NQAC Accreditation where we received the highest quality result you can receive in the child care industry. This shows and reflects on what we do here at the centre. A fantastic job from all the staff at Orana Gardens Child Care Centre Training All staff have attended training in work place and safety, asthma, anaphylactic, CPR & first aid, diabetes, fire safety, food handling, Early Years Learning Framework and behaviour management. There has been a lot to take in and gain knowledge of however the staff have adapted well. Fundraising and Donations During 2011 Orana Gardens Child Care Centre held many fundraising events and raffles. All monies have been gratefully received and they have allowed us to purchase bikes and helmets for the children to ride on the new bike track. Renovations The backyard had an overhaul as new grass was laid as well as the construction of a bike track, rockery sensory garden and a vegetable garden. Thank you to the Orana Gardens maintenance team. Challenges Challenges within the child care industry are the recruitment of casual qualified and experienced staff as well as staffing the roster to cover child to staff ratios. I am looking forward to 2012, as we will continue to provide first-rate high quality care for all the children and their families that are currently in our service and welcome any new children and families that may join us through out the year. On a personal note I would like to thank each and every staff member for their continued support and hard work in 2011. You are valued and very much appreciated. Thank you.

Paula Kearns Director of Orana Gardens Child Care Centre.

ORANA GARDENS CHILDCARE CENTRE DIRECTOR’S REPORT

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Our Staff The Association is proud to be a major employer in the Dubbo region, with 291 employees. Our employees are important and valuable assets and through these people over $11 million in salary related expense has been injected into the Community. This year we saw milestones in years of service with 3 people celebrating 15 years, one person their 10 years and 28 people celebrated 5 years of service. The organisation is committed to continuing to attract and retain a high quality workforce whilst building a culture that is cohesive, resident-centric and performance-orientated. Recruitment The recruitment strategy includes local and Australia-wide advertising, job network agencies, work experience students completing Certificate III in Aged Care through TAFE NSW and other Registered Training Organisations. The recruitment of Registered Nurses has been a challenge; however we have found success in utilising Recruitment Agencies and Nurses on work visas. Our workplace is now represented by people from 12 cultures, better enabling us to meet the diverse needs of our residents and clients. The industry attracts a public beneficiary institution benefit for employees and staff are assisted in maximising this benefit through our salary packaging experts. Reflecting our focus on quality recruitment and retention, the Association was a finalist in the 2011 Australian Aged Care Association Employer of Choice Awards Enterprise Agreement A new enterprise agreement for our aged care employees was negotiated in 2011 with the Unions and all major key stakeholders at Aged & Community Services. The agreement has a nominal expiry date of July 2014. This allows the Association to remain competitive in the sector for employment and retention. Learning and Development Our full time Work Place Trainer and Assessor works in close collaboration with senior management to ensure that our learning, development and education program supports quality care and ensures our staff are equipped with the skills, knowledge and experience to deliver best practice in resident care in a person-centered approach. Our continued commitment to upskilling our staff saw the Association as a finalist in the 2011 Dubbo Chamber of Commerce Rhino People Development Awards.

Rebecca McDonald Human Resource Manager

HUMAN RESOURCES MANAGER’S REPORT

Our Child Care team celebrating their first year of service

- - 21

The decision to consolidate management of General Services (maintenance, catering, laundry services and cleaning services) under one Manager in the Orana Gardens and Bellhaven Facilities was a practical decision made on industry trends. Challenges of the new structure have encouraged healthy and productive ideas while still achieving common goals, and now the Department will explore further industry trends and grow with the association.

Achievements

• Consolidation of a new department within the association • Preparation of 204,765 meals for our residents and 21,416 meals for Meals on

Wheels throughout the year • Establishing new industry compliant storage areas • Introducing environmentally friendly cleaning products for the association • Updating all Material Safety Data sheets • Upgrading security systems for Bellhaven (Wellington) • Replacing old carpet in the Dubbo residential facility with long lasting commercial

vinyl • Introduction of new and compliant commercial cleaning equipment • Upgrade of the food safety program • Passed NSW Food Authority audit • Upgrade four week menu to six week ( under review) with new standard recipes • Streamling maintenance procedures • Ongoing work to upgrade the asset register • Major paint work in the retirement village

In 2012 we have the opportunity to expand the roles of the Manager, Supervisors and Team Leaders of General Services to maximise their contribution to the Association. I would like to thank Ray Hewitt and Jack Pedron for their support in their respective supervisor roles, and to all the new team leaders - thank you and well done.

David Linton General Services Manager

GENERAL SERVICES MANAGER’S REPORT

- - 22

The major achievement of the year was the launch of:

www.oranagardens.com.au The Association is proud to have launched its website oranagardens.com.au this year. Residents and their families are increasingly more familiar with accessing information online and our website allows us to further service this clientele in addition to increasing our visibility as a care provider. Oranagardens.com.au is regularly updated with photos of special events and news stories. The residents enjoying seeing themselves on the screen. There are plans in place to make it more interactive in 2012 by including newsletters and activities for the children who attend the Child Care Centre. Our businesses operate within very competitive market places and the Association’s marketing strategy to focus on brand awareness within the community has been put into action this year with the launch of the website, becoming finalists in the Dubbo Chamber of Commerce Rhino Awards and more stories and photos being published in the local newspapers. Throughout 2012 we will continue to maximise our exposure through the promotion of our activities and achievements.

Tracey Tuohey Media Officer

MEDIA OFFICER’S REPORT

http://www.oranagardens.com.au/

Dubbo RSL Aged Care Association Ltd Financial Statements

For the Year Ended 31 December 2011

Dubbo RSL Aged Care Association Ltd

Contents


Page

Financial Statements

Directors' Report 23

Independent Audit Report 28

Directors’ Declaration 30

Statement of Comprehensive Income 31

Statement of Financial Position 32

Distribution of Profit and Loss 33

Cash Flow Statement 34

Notes to the Financial Statements 35

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 52

23

Directors' Report 31 December 2011

Your directors present their report on the company for the financial year ended 31 December 2011.

1. General information

a Directors

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

Names Mr Ross Graham

Mr Geoffrey Holland

Mr Anthony Kelly

Mr James (Jim) Lang

Mr Earl McManus

Dr David Schuster

MrWilliam Greenwood

Appointed/Resigned

Directors have been in office since the start of the financial year to the date of this report unless

otherwise stated.

b PrincipalActivities

The principal activities of Dubbo RSL Aged Care Association Ltd during the financial year was to provide; - Residential Aged Care Services.

- Retirement Village Accommodation.

- Child Care Services- Long Day Care.

- Ancillary services related to the provision of these services.

24

Directors' Report

31 December 2011

1. General information continued

b Principal Activities continued

Short Term Objectives

The Dubbo RSL Aged Care Association Ltd's short term objectives is to achieve improved

financial performance within the constraints of providing high quality services to our residents and

clients whilst ensuring the long term financial sustainability of the Association.

Long Term Objectives

The Dubbo RSL Aged Care Association Ltd's long term objectives is to provide high quality residential

aged care services, long day care services and retirement village living that will meet the future

demand of Dubbo and the Orana Region.

Strategies Implemented to Achieve Objectives

The Dubbo RSL Aged Care Association Ltd has implemented a new management structure support

by the Board of Directors and sub-committees which promotes greater responsibility and

accountability to achieve the set objectives as per the Association's twenty [20] year strategic plan.

Key Performance Indicators

The Dubbo RSL Aged Care Association Ltd considers its results by analysing actual results achieved

compared to the budgeted expectation on a monthly basis. In addition the Association compares its

performance over a wide spectrum of operational areas with other aged care providers via

benchmarking facilities provide by the Stewart Brown & Co. Aged Care Financial Performance Survey.

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

2. Business review

Operating Results

The profit/(loss) from ordinary activities amounted to $ (364,972)(2010: $ 300,138).

25

Directors' Report

31 December 2011

2. Business review continued

a Review of operations

The Association has realised a loss of $(364,972) for the year ending 31 December 2011. This result

reflects the Association proactively embracing the changing Aged Care landscape and realising the

impairment of the value of our bed licences resulting from recommended market deregulation in

the Productivity Commission report. This allows the Association to focus on preparing for the new

Aged Care environment into the future. The impact of this asset impairment was $996,510.

To assess the operational activity more realistically we need to remove the impairment expense above to see the successful year we had. Without this expense we have realised a profit of $631,538 - a $331,400 improvement on our 2010 result.

This result was achieved through:

- being able to achieve average occupancy across our facilities of 97%;

- maximising claims under the Government funded Aged Care Financial Instrument {ACFI);

- the successful growth of our Childcare centre and achievement of 100% occupancy;

- successful management of our Retirement Village;

- continued focus by management on sustainable cost reductions, maximising economies of scale and

- greater management accountability.

3. Other Items

a Significant Changes in State of Affairs

No significant changes in Dubbo RSL Aged Care Association Ltd's state of affairs occurred during the

financial year.

b After balance day events

No matters or circumstances have arisen since the end of the financial year which significantly affected

or may significantly affect the operations of Dubbo RSL Aged Care Association Ltd, the results of those

operations or the state of affairs of Dubbo RSL Aged Care Association Ltd in future financial years.

c Auditors Independence Declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out at page 52.

26

Directors' Report

31 December 2011

4. Director Information

a Information on Directors

Mr Ross Graham

Experience

Mr Geoffrey Holland

Experience

Mr Anthony Kelly

Experience

Mr James (Jim) Lang

Experience

Mr Earl McManus

Experience

Dr David Schuster

Qualifications

Experience

Mr William Greenwood

Experience

Served on the Board of Directors of Dubbo RSL Aged Care for 12 years Secretary/Manager Served on the Board of Directors of Dubbo RSL Aged Care for 13 years Served on the Board of Directors of Dubbo RSL Aged Care for 5 years Served on the Board of Directors of Dubbo RSL Aged Care for 10 years Served on the Board of Directors of Dubbo RSL Aged Care for 11 years Anaesthetist

Served on the Board of Directors of Dubbo RSL Aged Care for 7 years Served on the Board of Directors of the Dubbo RSL Aged Care Association for 2 years

29

Directors' Report

31 December 2011

4. Director lnformation continued

b Meetings of Directors

During the financial year, 12 meetings of directors were held. Attendance by each director during the year were as follows:

Directors'

Meetings

Eligible to Number

attend attended

Mr Ross Graham 12 11 Mr Geoffrey Holland 12 11 Mr Anthony Kelly 12 10 Mr James (Jim) Lang 12 9

Mr Earl McManus 12 12 Dr David Schuster 12 9

Mr William Greenwood 12 10

Committee meetings

Mr Ross Graham

3

3

Mr William Greenwood 3 3

Mr Geoffrey Holland 12 11 Mr Anthony Kelly 12 12 Mr James (Jim) Lang 12 11

Mr Earl McManus 12 11

Signed in accordance with a resolution of the Board of Directors:

Dated 28 March 2012

30

Independent Audit Report to the members of Dubbo RSL Aged Care Association Ltd

Report on the Financial Report

We have audited the accompanying financial report of Dubbo RSL Aged Care Association Ltd, which comprises the statement of financial position as at 31 December 2011, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Director Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.

Auditors Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

31

Independent Audit Report to the members of Dubbo RSL Aged Care Association Ltd

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

We confirm that the independence declaration required by the Corporations Act 2001, has been given to the

directors of Dubbo RSL Aged Care Association Ltd, on the date of this auditor's report.

Opinion

In our opinion:

(a) the financial report of Dubbo RSL Aged Care Association Ltd is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company's financial position as at 31December 2011 and of its

performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Caroline A Wilcher Director BOYCE Assurance Services Pty Limited

Dubbo

28 March 2012

32

Directors' Declaration

The directors of the entity declare that:

1. The financial statements and notes, as set out on pages 31 to 51, are in accordance with the Corporations Act 2001 and:

(a) comply with Australian Accounting Standards; and

(b) give a true and fair view of the financial position as at 31 December 2011 and of the performance for

the year ended on that date of the entity.

2. In the directors' opinion, there are reasonable grounds to believe that the entity will be able to pay its

debts as and when they become due and payable.

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

Dated 28 March 2012

33

Statement of Comprehensive Income For the Year Ended 31December 2011

2011

2010

Note $ $ Revenue 2 15,092,882 14,006,000

Other income 3 553,179 421,901

Employee benefits expense (10,515,966) (9,777,072)

Depreciation, amortisation and impairments 4 (2,151,765) (1,153,584)

Electricity and gas (299,338) (258,271)

Repairs and maintenance (333,378) (275,275)

Provisions for residents (653,315) (646,952)

Capital gains paid to residents (119,045) (216,350)

Insurance- Workers compensation (513,049) (331,171)

Consulting and professional fees (45,542) (314,926)

Other expenses (1,379,635) (1,154,162)

Profit/(loss) before income tax

(364,972)

300,138

Profit/(loss) from continuing operations

(364,972)

300,138

Profit/loss) for the period

(364,972)

300,138

Other comprehensive income Net loss on revaluation

(4,928,490)

(407,800)

Other comprehensive income for the period, net of tax (4,928,490) (407,800)

Total comprehensive income/(loss) for the period (5,293,462) (107,662)

34

Statement of Financial Position

31 December 2011

ASSETS

Current assets

2011 2010

Note $ $

Cash and cash equivalents 6 1,723,099 1,364,276

Trade and other receivables 7 275,735 292,916

Financial assets 8 7,292,611 6,923,965

Other assets 9 103,238 96,394

Total current assets 9,394,683 8,677,551

Non-current assets

Property, plant and equipment 10 25,714,009 26,032,687

Intangible assets 11 3,204 5,928,204

Total non-current assets 25,717,213 31,960,891

TOTAL ASSETS 35,111,896 40,638,442

LIABILITIES

Current liabilities

Trade and other payables 12 771,305 264,614

Bonds and resident loans 12 20,647,383 21,856,329

Short-term provisions 13 541,608 578,507

Other liabilities 14 767,420 605,881

Total current liabilities 22,727,716 23,305,331

Non-current liabilities Other long-term provisions 13 390,643 329,753

Total non-current liabilities 390,643 329,753

TOTAL LIABILITIES 23,118,359 23,635,084

NET ASSETS 11,993,537 17,003,358

EQUITY

Reserves 702,453 5,347,302

Retained earnings 11,291,084 11,656,056

TOTAL EQUITY 11,993,537 17,003,358

35


Distribution of Profit and Loss


2011

Retained

Asset Revaluation

Future capital

Earnings Reserve gain reserve Total

$ $ $ $

Balance at beginning of year 11,656,056 7,007,715 (1,660,412) 17,003,359 Profit attributable to members (364,972) (364,972)

Transfers to and from reserves -Movement in liability to pay 50% of village unit

capital growth to exiting residents 283,640 283,640

Reverse prior year revaluation increments (4,928,490) (4,928,490)

Sub-total

(364,972)

(4,928,490)

283,640

(5,009,822)

Balance at 31 December 2011 11,291,084 2,079,225 (1,376,772) 11,993,537

2010

Retained

Asset Revaluation

Future capital

Earnings Reserve gain reserve Total

$ $ $ $

Balance at beginning of year 11,355,917 7,415,515 (1,759,299) 17,012,133

Profit/{loss) attributable to members 300,139 300,139

Transfers to and from reserves -Movement in liability to pay SO% of village unit

capital growth to exiting residents 98,887 98,887

Reverse prior year revaluation increments (407,800) (407,800)

Sub-total

300,139

(407,800)

98,887

(8,774)

Balance at 31 December 2010

11,656,056

7,007,715

(1,660,412)

17,003,359

34


Cash Flow Statement


Cash from operating activities: Receipts from government subsidies, company

2011 2010

Note $ $

memberships and residents 16,015,010 14,783,870

Payments to suppliers and employees (14,205,310) (14,255,493)

Interest received 545,115 421,901

Donations received 127,561 127,362

Net cash provided by (used in) operating activities 16(a) 2,482,376 1,077,640

Cash flows from investing activities:

Proceeds from sale of property, plant and equipment 30,000

Acquisition of property, plant and equipment (859,603) (294,796)

Investments (in)/withdrawn from cash on deposit (368,646) (1,812,491)

Net cash provided by (used in) investing activities (1,198,249) (2,107,287)

Cash flows from financing activities:

Resident proceeds and repayments (925,304) 965,042

Net cash provided by (used in) financing activities (925,304) 965,042

Net increase (decreases) in cash held 358,823 (64,605) Cash at beginning of financial year 1,364,276 1,428,881

Cash at end of financial year 6 1,723,099 1,364,276

35

Notes to the Financial Statements

For the Year Ended 31 December 2011 1 Statement of Significant Accounting Policies

(a) General information

The financial report covers Dubbo RSL Aged Care Association Ltd as an individual entity. Dubbo RSL Aged Care Association Ltd is a company limited by guarantee, incorporated and domiciled in Australia.

(b) Basis of Preparation

The financial report is a general purpose financial report that has been prepared in accordance with

Australian Accounting Standards, Australian Accounting Interpretations, other authoritative

pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result

in a financial report containing relevant and reliable information about transactions, events and

conditions to which they apply. Compliance with Australian Accounting Standards ensures that the

financial statements and notes also comply with International Financial Reporting Standards. Material

accounting policies adopted in the preparation of this financial report are presented below. They have

been consistently applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs modified,

where applicable, by the measurement at fair value of selected non-current assets, financial assets

and financial liabilities.

(c) Comparative Figures

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

(d) Revenue

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

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Revenue from the rendering of services is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST).

(e) Government Grants

Recurring Government subsidy income is recognised in the period to which it relates. Subsidy

income received in advance is accounted for as a liability.

36



Statement of Significant Accounting Policies continued

(e) Government Grants continued

Government grants are recognised on a cash receipts basis. Under AASB 1004 not for profit entities are required to bring all grant income immediately to revenue where it is probable that performance criteria is met.

(f) Deferred income

(i) Deferred revenue

The company has entered into agreements where the services to be performed extends beyond the current operating cycle. For these agreements, the company records a long-term obligation and recognises revenue over the period of the agreement as the services are rendered.

(g) Income Tax

Dubbo RSL Aged Care Association Limited is recognised by the Australian Taxation Office as a

public benevolent institution. It is therefore exempt from income tax pursuant to section 23(e) of

the Income Tax Assessment Act.

(h) Property, Plant and Equipment

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

Land is revalued at the value provided by the Valuer General every valuation cycle; generally every 3 years. Buildings, plant and equipment are measured on the cost basis less depreciation and

impairment losses.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but

excluding freehold land, is depreciated on a straight-line basis or diminishing value over the asset's

useful life to the company commencing from the time the asset is held ready for use.

Leasehold improvements are depreciated over the shorter of either the unexpired period of the

lease or the estimated useful lives of the improvements.

37



Statement of Slgnlflcant Accounting Policies continued

(h) Property, Plant and Equipment continued

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

Class of Fixed Asset

Buildings and improvements 2.5% - 10%

Plant and Equipment 2.5% - 33% The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Plant and equipment - carrying amount

The carrying amount of property, plant and equipment is reviewed annually by directors to ensure it

is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on

the basis of the expected net cash flows that will be received from the assets employment and

subsequent disposal. The expected net cash flows have been discounted to their present values in

determining recoverable amounts.

(i) Intangibles

Bed licences

In prior years, bed licences were recorded at fair value. Fair value was based on the amount for

which the asset could be exchanged between knowledgeable willing parties in an arm's length

transaction. Upon the adoption of A-IFRS, the bed licences were valued at their "deemed cost" of

between $25,000 and $35,000 each, being the fair value as at 1January 2005, as allowed by AASB 1:

First-time Adoption of A-IFRS, and tested annually for impairment.

In June 2011 the Productivity Commission released its report "Caring for Older Australians" to address challenges within the sector.

The Aged Care industry has supported many of the recommendations within the report, along with

removal of the cap on bed licenses. With industry support of the deregulation,the market for bed

licences has already reacted to this recommendation and reflected in lack of sales over the last 12

months. This coupled with the under allocation of "free bed licences" in the Aged Care Approval

Rounds for the last two years confirms there is no longer an active market for bed licences.

Accordingly, the directors have chosen to impair the carrying value of the bed licenses to nil from 31 December 2011.

38




(j) Financial lnstruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Held-to-maturity investments

These investments have fixed maturities, and it is the company's intention to hold these investments to maturity. Any held-to-maturity investments held by the company are stated at amortised cost using the effective interest rate method.

Impairment

At each reporting date, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

(k) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(I) Employee Benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at present value of the estimated future cash outflows to be made for those benefits.

39




(m) Long term payables

Provisions are recognised when the company has a legal or constructive obligation, as a result of past

events, for which it is probable that an outflow of economic benefits will result and that outflow

can be reliably measured.

(i) Capital gains on sale of village units

Some Village residents are entitled to receive 50% of the uplift in value when a unit becomes

occupied by a new resident. Under AASB 139, the association is required to recognise a liability for

the 50% of estimated future capital growth in unit value which it is obliged to pay to exiting

residents. This requirement commenced with the adoption of A-IFRS on 1 January 2005 and has

resulted in an increase in the liabilities of the association.

By necessity, the liability for payment of 50% of capital gains to affected residents requires the association to make estimates regarding the weighted average length of time that residents spend in the village and the rate of capital growth in the value of the units. As a result, these estimates may be subject to adjustment in future years in the light of more relevant and reliable information becoming available.

As this liability is not due and payable until an exit event, the accompanying debit is recorded

through the reserves of the Association. As exit events occur, the provision and reserve is unwound

such that the costs of the capital gain payable to the exiting resident are released to the statement of

comprehensive income.

(n) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount

of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST

is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

Receivables and payables in the statement of financial position are shown inclusive of GST.

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

40




(o) New accounting standards for application in future periods

The AASB has issued new and amended Accounting Standards and Interpretations that have

mandatory application dates for future reporting periods. The company has decided against early

adoption of these Standards .The following table summarises those future requirements, and their

impact on the company:

Standard name Effective date for entity

Requirements Impact

AASB 124 Related Party

Disclosures and amending

standard AASB 2009-12

30June 2012 - Clarification of the definition of a related party

- Requirement to disclose commitments to related parties

-Disclosure exemptions for government-related entities

Minimal impact

expected

AASB 9 Financial Instruments and

amending standards AASB

2009-11/ AASB 2010-7

30June 2014 -Changes to the classification and measurement requirements for financial assets and financial liabilities.

-New rules relating to derecognition of financial instruments.

The impact of AASB 9

has not yet been

determined.

AASB 2010-4/2010-5 Amendments and further

amendments to Australian Accounting Standards arising

from the Annual Improvements

Project

30June 2012 Makes changes to a number of standards I interpretations including:

-Clarification of the content of the statement of changes in equity

-Financial instrument disclosures - Fair value of award credits

No impact expected.

AASB 1054 Additional Australian disclosures I AASB 2011-1 Amendments to Australian

Accounting Standards arising

from Trans-Tasman

convergence

30June 2012 Collates the Australian specific

disclosures into one Accounting

Standard rather than including

them within a number of

different standards.

Little impact since most

of the disclosures

required by AASB 1054

are already included

within the financial statements.

41




(0) New accounting standards for application In future periods continued Standard name Effective date for

entity Requirements Impact

AASB 13 Fair Value

Measurement 30June 2014 AASB 13 provides a precise

definition of fair value and a

single source of fair value

measurement and disclosure

requirements for use across

Accounting Standards but does

not change when fair value is

required or permitted.

There are a number of additional disclosure requirements.

Fair value estimates currently made by the

entity will be revised

and potential changes

to reported values may

be required.

The entity has not yet

determined the

magnitude of any

changes which may be

needed.

Some additional

disclosures will be

needed.

42



2011 2010

$ $

2 Revenue

Government care subsidies

8,979,893

8,514,441

Long term maintenance levy 411,428 390,952

Residents contributions- Accommodation and care 4,193,978 3,812,714

Retained entry contributions 372,419 388,817

Sale of meals 188,772 217,098

Government grants 95,102 56,500

Child care fees 689,931 400,986

Donations 127,561 127,362

Other income 33,798 97,130

Total

15,092,882

14,006,000

3

Other revenue

Rent 1,091

Interest received 545,115 421,901

Gain on disposal of assets 6,973

Total

553,179

421,901

4

Result for the Year

The result for the year includes the following specific expenses

Depreciation, amortisation and impairments

Depreciation of property,plant and equipment 1,149,839 1,153,584

Impairment of bed licences 996,510 Bad debts 5,416

Total Depreciation, amortisation and impairments

2,151,765

1,153,584

43



2011 2010

$ $

5 Auditors' Remuneration Remuneration of the auditor of the company for:

-Auditors remuneration 12,000 15,500

-other services 6,555 7,839

-Total

18,555

23,339

6

Cash and Cash Equivalents

Cash on hand 2,175 1,875

Cash at bank 923,586 858,087

Term deposits 797,338 504,314

1,723,099

1,364,276

Reconciliation of Cash

Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in the balance sheet as follows:

Cash and cash equivalents 1,723,099 1,364,276

1,723,099 1,364,276

7 Trade and Other Receivables

CURRENT

Trade receivables 30,957 96,657

Deposits 2,342 1,504

GST receivable 20,329 30,228

Other receivables 222,107 164,527

275,735 292,916

Trading terms

Trading terms are: residents are invoiced once a month in advance.

8 FinancialAssets

Held-to-maturity Investments Comprise:

44



2011 2010

$ $

8 Financial Assets continued

Held-to-maturity Investments Comprise: continued

Term deposits 7,292,611 6,923,965

7,292,611 6,923,965

For more information on terms deposits, refer to Note 19, Exposure to Financial institutions.

9 Other Assets

CURRENT

Prepayments 103,238 96,394

103,238

96,394

10

Property Plant and Equipment

LAND AND BUILDINGS

Freehold land

At Independent valuation

Land

3,971,200

3,821,200

Total freehold land

3,971,200

3,821,200

Buildings and improvements 28,687,091 28,417,172 Less accumulated depreciation (8,259,124) (7,511,204)

Total buildings and improvements

20,427,967

20,905,968

Total land and buildings

24,399,167

24,727,168

PLANT AND EQUIPMENT

Plant and equipment

4,513,131

4,101,983 Less accumulated depreciation (3,198,289) (2,796,463)

Total plant and equipment

1,314,842

1,305,520

Total property, plant and equipment 25,714,009 26,032,688

The last independent valuation for land was the value provided by the Valuer General effective 1July 2010 rating period.

45



10 Property Plant and Equipment continued

(a) Movements in Carrying Amounts

Movement in the carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year:

Land

$

Buildings and Improvements

$

Plant and Equipment

$

Total

$

Current Year

Balance at the beginning of year

Additions

Disposals

Transfers

Depreciation

3,821,200

150,000

20,905,968

269,955

(747,956)

1,305,520 26,032,688

434,232 854,187

(23,027) (23,027)

(401,883) (1,149,839)

Carrying amount at the end of

year 3,971,200 20,427,967

1,314,842 25,714,009

Prior Year

Balance at the beginning of

year

Additions

Transfers

Depreciation expense

Revaluation decrease recognised in equity

4,046,000 21,751,725 1,501,551 27,299,276

90,856 203,940 294,796

183,000 (183,000)

(753,613) (399,971) (1,153,584)

(407,800) (407,800)

Carrying amount at the end of year 3,821,200 20,905,968 1,305,520 26,032,688

46

3,204 1,400,000 210,000 1 550,000 2,765,000 5,928,204

(598,285)

(88,390)

(1,550,000)

(2,691,815)

(4,928,490)

(801,715)

(121,610) (73,185)

(996,510)




11 Intangible assets

(a) Movements in carrying amounts

Year ended 31December 2010

Bed licences (751· Formation Bed licences (40}- Bed licences (6} • Bed licences (62}- John Whittle expenses Bellhaven Bellhaven Hostel House Total

$ $ $ $ $ $

Opening balance 3,204 1.400,000 210,000 1,550,000 2,765,000 5,928,204

Balance at 31December 2010 3,204 1,400,000 210,000 1,550,000 2,765,000 5,928,204

Year ended 31December

2011 Opening balance

Revaluation decrease recognised in equity

Revaluation decrease recognised in income

Balance at 31 December

2011 $ 3,204 $ - $ - $ $ $ 3,204

For discussion on revaluation movements,refer note l(i) Intangibles- bed licences.

47

Employee benefits 541,608 578,507

541,608

578,507

NON-CURRENT Employee benefits

390,643

329,753

390,643

329,753



2011 2010

$ $

12 Trade and Other Payables

CURRENT

Trade payables

Accrued expenses

BONDS AND RESIDENT LOANS

VIllage resident loans

Estimated liability for capital growth in village units

Lodge resident bonds

466,807 81,888

304,498 182,726

771,305 264,614 14,046,074 14,144,039

1,376,771 1,660,412

5,224,539 6,051,877 20,647,384 21,856,328

21,418,689 22,120,942

Whilst the resident loans and bonds are classified as current under accounting standards as they may be

called upon at any time,they are not likely to be paid out within the next 12 months.

13 Provisions

Provision for Employee Entitlements

Provisions for employee entitlements includes provisions for annual, long service, special and sick leave.

CURRENT

48



2011

$ 2010

$

14 Other Liabilities

Current

Residents funds held in trust

24,841

22,098

Subsidy income received in advance 742,579 543,479

Other deferred income 40,304

Total

767,420

605,881

15 Members' Guarantee

The company is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of $1 each towards any outstanding obligations of the company.

16 Cash Flow Information

(a) Reconciliation of Cash Flow from Operations with Profit after Income Tax

Net income/(loss) for the period (364,972) 300,138

Cash flows excluded from profit attributable to operating

activities

Non-cash flows in profit

Depreciation,amortisation and impairments 2,151,765 1,153,584

Gain on disposal of assets (6,973)

Movement in:

(lncrease)/decrease in trade and term receivables

17,179

(24,822)

(lncrease)/decrease in prepayments (6,844) (3,653)

lncrease/(decrease) in trade payables and accruals 506,691 (287,935)

lncrease/(decrease) in other liabilities 161,539 (47,105)

lncrease/(decrease) in provisions 23,991 (12,567)

Cashflow from operations 2,482,376 1,077,640

49



2011 2010

$ $

17 Financial Risk Management

(a) Effective interest rates and re-pricing analysis

The company's financial instruments consist mainly of deposits with banks, accounts receivable, accounts payable and borrowings.

in respect of income-earning financial assets the following table indicates their effective interest rates at the statement of financial position date and the periods in which they reprice.

2011

Effective Interest Total 3 months or less

rate $ $

Cash and cash equivalents 6.00% 1,723,099 1,723,099

Term deposits* 6.22% 7,292,611

Total 9,015,710 1,723,099

412 months

$

7,292,611

7,292,611

Effective Interest rate

Total

$

2010

3 months or less 4- 12 months

$ $ Cash and cash equivalents

Term deposits* 4.35%

6.45%

1,364,276

6,923,965

1,364,276

6,923,965

Total 1,364,276 6,923,965

• These assets bear a fixed interest rate.

( i ) Sensitivity Analysis

The company has performed a sensitivity analysis relating to its exposure to interest rate risk at

balance date. This sensitivity analysis demonstrates the effect on the current year results and equity

which could result from a change in these risks.

Interest Rate Risk Sensitivity Analysis

At 31 December 2011, the effect on profit as a result of changes in the interest rate on the cash on

deposit, with all other variables remaining constant would be as follows:

Change in profit/equity

- Increase in interest rates of 2%

- Decrease in interest rates of 2%

180,314

(180,314)

165,698

(165,698)

50



18 Management reporting by division

Aged Care Village Childcare 2011 2011 2011 2011

$ $ $ $

REVENUE Government care subsidies $ 8,979,620 $ $ $ 8,979,620

Long term maintenance levy 411,428 411,428

Residents contributions 3,609,969 584,008 4,193,977 Retained entry contributions 143,944 228,475 372,419

Sale of meals 188,772 188,772 Child care fees 689,931 689,931 Donations 127,560 127,560 Other income 42,988 800 5,763 49,551 Government Grants 81,381 13,721 95,102 Interest received 265,183 279,933 545,116

Total revenue 13,439,417 1,504,644 709,415 15,653,476

EXPENSES Employee benefits expense (9,800,588) (247,731) (467,647) (10,515,966) Depreciation and impairments (1,752,143) (368,435) (25,771) (2,146,349) Electricity and gas (288,315) (7,431) (3,592) (299,338) Repairs and maintenance (170,895) (153,404) (9,079) (333,378) Provisions for residents (651,130) (9,600) (660,730) Capital Gains paid to residents (119,045) (119,045) Insurance- Workers compensation (481,654) (13,064) (18,331) (513,049) Consulting and professional fees (45,542) (45,542) Other operating expenses (1,192,152) (141,311) (51,588) (1,385,051)

Total expenses (14,382,419) (1,050,421) (585,608) (16,018,448)

Net profit by division $ (943,002) $ 454,223 $ 123,807 $ (364,972)

ASSETS Divisional assets $22,938,138 $11,710,672 $ 463,086 $ 35,111,896

Total assets $22,938,138 $11,710,672 $ 463,086 $ 35,111,896

LIABILITIES Divisional liabilities $ 7,695,514 $ 15,422,845 $ $ 23,118,359

Total liabilities $ 7,695,514 $ 15,422,845 $ $ 23,118,359

51



19 Exposure to financial institutions

Due to the Global Financial Crisis, perception of risks associated with moneys on deposits with

financial institutions has increased. As a result details of the balances of these deposits as at 31

December 2011 by financial institution have been disclosed below:

Macquarie Credit Union Ltd $2,177,017

ING Bank Ltd $1,324,593

Bank of Queensland Ltd $520,127 Suncorp Ltd $3,036,475 The Community Mutual Group $1,031,737

20 Economic Dependence

The continuing operation of the company is dependent on subsidies received from the Australian Government.

21 Company Details

(a) Registered office

The registered office of the company is:


Orana Gardens Lodge

Windsor Parade

DUBBO NSW 2830

52

Auditors Independence Declaration under Section 307C of the Corporations Act 2001

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2011 there have been:

(i) no contraventions of the auditor independence requirements asset out in the Corporations Act 2001 in

relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Caroline A Wilcher Director BOYCE Assurance Services Pty Limited

28 March 2012

Dubbo

Documents

ORANA GARDENS€¦ · Dianne Bayliss, as our Director of Care. Mrs Bayliss has made good progress in a short period of time in the position. Special thanks also to Mrs Evelyn Quade