The Western Region Alcohol & Drug Centre Inc.Annual Report 2006-2007

Address: 172 Merri Street Warrnambool Vic 3280Telephone: 1300 009 723 5564 5777Fax: 5564 5700Web: www.wrad.org.au

The Western Region Alcohol & Drug Centre Inc. (WRAD) is funded by the Victorian Government Department of Human Services.

Vic logo

AER Foundation

WRAD proudly acknowledges the support of the Alcohol Education and Rehabilitation (AER) Foundation Ltd.

Victorian Government slogan is used under Victorian Government Branding Policy approved by the Department of Premier and Cabinet and is used by authority.

Introduction

WRAD began as a grass-roots community group 23 years ago, de-termined to provide better services for people with alcohol and drug (A&D) problems in South West Victoria. Since that date WRAD has broadened its base to provide diverse services to meet the multiple needs of people with A&D problems.

The WRAD Centre is a not-for-profit organization that operates within a community-based management model. An elected 8-member Com-mittee of Management (COM) is responsible to provide services in accordance with relevant legislation, service guidelines and funding agreements.

The philosophy of harm minimization underpins the delivery of all pro-grams offered by WRAD. People and their problems are viewed ho-listically, and WRAD staff work collaboratively with other health-related professionals and organizations to best meet the needs of clients and their families.

Committed to providing specialist services to individuals and families across the South West.Attending to the diverse needs and problems created by alcohol and drug use.

COMMITTEE OF MANAGEMENT

Helen Taylor, Chairperson, Assistant Principal, Brauer College

Peter McMillan, Treasurer, Partner, Sinclair & Wilson Accountants

James Nicol, Secretary, Partner, Maddens Lawyers

Glenys Phillpot, Councillor, Warrnambool City Council

Ian Armstrong, APM, Retired

Gordon Main, Captain, Salvation Army Corps

Peter Nichols, Snr Sgt, Warrnambool Police Station

Leonie Saundry, Senior Project Officer, Department of Education & Training - Left 2007

Rodger Brough, Addiction Medicine Physician - Left 2007

EMPLOYEES FOR 2007 AGM REPORT:

Meril Arnold Relieving Practice Nurse (to March, 2007) Sharyn Amos Acquired Brain Injury AOD Clinician (to August, 2006)Helen Bayne Project Worker (to November, 2006)John Bell Koori Diversion Worker (to March,2007)Georgina Bedford CounsellorDawn Bermingham Office ManagerTanya Bonner Barwon Youth Worker (co-located)Carmel Brady Project WorkerDr Rodger Brough Addiction Medicine Physician (to February, 2007) Project WorkerAndrea Edwards Youth Home-Based Withdrawal Worker, Youth Counsellor, RODWKevin Fitzgerald Acquired Brain Injury AOD Clinician, Drug Screen WorkerDaryl Fitzgibbon Clinicial Manager; Supported Accommodation ManagerTony Harrison Barwon Youth Worker (co-located)Emmy Johnson Supported Accommodation Worker, ReceptionistRob Kenna CounsellorKerry Lee ReceptionistTroy Litster Koori Diversion WorkerDebbie Maguire Finance OfficerCarol Main Medical AdministratorJane Meiklejohn Practice Nurse (to April, 2007)Dr Clare Mooney Medical PractitionerDr David Richards Addiction Medicine PhysicianDr Sue Richardson Medical PractitionerMat Rogers Building Project Worker (to August, 2007)Joy Shannahan Medical AdministratorGeoff Soma DirectorMark Sonego Supported Accommodation Worker (to July, 2006)Rebecca Townsend Practice NurseBridie West Project Worker

It is with great pleasure that I present my first annual report of the Western Region Alcohol and Drug Centre. Whilst I have been a board member for many years it is a great honour to take on the role of chairperson.

It is close to 12 months since the opening of our new building. The opening day was highlighted by the support of Dr. Ian Webster and the Alcohol Education and Rehabilitation Foundation. It was wonderful to see so many representatives from health and welfare agencies and individuals from the wider community at the ceremony, so much so, we all just managed to fit into the Rodger Brough function room.

We also saw the past chairman step down from this role after many valuable and strong years of leadership to the Committee of Management. Ian Armstrong has continued to be an active board member and offer this body his long-time knowledge and expertise. I would like to take this opportunity to highlight Ian’s outstanding and ongoing contribution to WRAD. The board membership has also undergone some change. Leonie Saundry, a senior project officer with the Department of Education and Early Childhood Development, has taken up another role in Geelong and has been replaced on the committee by Peter Nichols from Victoria Police. I wish to thank Leonie and welcome Peter to the WRAD Board.

The WRAD team continues to enjoy and extol the features of the new premises. Not only is the building purpose designed for WRAD service delivery but we have been able to sublet space to other agencies to off set internal business costs.

The 2006-07 year has been an interesting one with many significant achievements and some concerns as well.

Some of the positives include:• An increase in clients accessing the Centre.• An increase in the number of older clients accessing the Centre.• Successful fund-raising for the year with more than $165,000 received in donations.• Increased profile in the local community.• Continued good working relationships with local agencies and services. This includes the hospital, psychiatric services, and Community South West.• Recent hosting of five ministers of parliament for Drug and Crime Prevention Enquiry into benzodiazepams and opiate analgesics.• Meetings with local and metropolitan politicians to raise the profile of drug and alcohol treatment strategies.• Professional and enthusiastic staff who work with clients to ensure effective outcomes for each person

Some of the negatives include:• The medical services model that WRAD has established is proving a struggle to maintain.• Alcohol is still the drug causing most harm in our community.• We have also had some staff move on but are reassured by the arrival of new staff who will ably fill those roles. I would like to take this opportunity to thank those departing staff members for their efforts and commitment and wish them all the very best in the future.

I also wish to thank Geoff Soma for his fine leadership of the WRAD Centre. His foresight, planning, management, enthusiasm and sheer determination is greatly appreciated.

The Committee of Management members who give of their time freely also deserve my thanks. Whether it be the timetabled meetings, short notice trips to Melbourne or meetings with Department of Human Services representatives, their commitment and ability to provide a high level of governance and direction to the organization is acknowledged.

While WRAD has achieved much during the year it is of considerable concern to me that funding for drug and alcohol programs is so small. Clever fund management and application for other program funding has allowed WRAD to continue to provide meaningful and valuable service to clients. However, drug and alcohol problems (health, social, family and criminal) cannot be properly addressed given the present level of funding.

WRAD provides a vital and necessary service in our community. We have a positive and focused team who want to develop and expand our services to meet the needs of the community. Let us hope that with greater government support we can achieve these goals.

Helen TaylorChairpersonWRAD Committee of Management

2006-2007 in reviewThe reporting period was rewarding for the agency as we completed the building project and our services provided assistance for more than 2100 clients.

Quality improvement was a major priority during the 06-07 period and ended in the accreditation of the WRAD Centre.

Despite funding challenges, WRAD delivered diverse programs to meet the complex needs of clients with alcohol and drug problems and associated difficulties.

Service improvementIt was a busy period for WRAD clinical and medical services as the agency strived to improve the level of treatment delivered.

Counselling, home-based withdrawal, acquired brain injury, housing, drug diversion and medical services provided a framework to support client treatment needs.

With the help of other organisations, WRAD implemented specialist programs designed to improve the level of care as follows:

• Outreach services to the communities of Terang, Camperdown and Port Fairy delivered counselling programs outside of Warrnambool city.• Acquired brain injury service co-ordination across the south-west for clients suffering damage caused by years of alcohol and substance abuse.

• The Barwon Youth Access Program co-located at the WRAD Centre operated a service for at-risk young people with drug issues.• The Catching the Dragon Training Program provided online opportunities to train medical practitioners to effectively treat people with drug-related problems.• The Koori Diversion Program assisted Koori clients to access treatment services across the region.• The Treatment in Custody project assisted clients with medical needs while at the Warrnambool Police cells.

WRAD worked closely with South West Healthcare Psychiatric Services to assist clients with mental health and drug and alcohol problems.

The service collaborated with a range of external organisations to address the diverse needs of clients and provide opportunities for them to make changes in their lives.

EmploymentIt was a busy year for staff as we said goodbye to a number of employees including Sharyn Amos, Mat Rodgers, Jane Meiklejohn, Mark Sonego and John Bell. I take this opportunity to acknowledge their hard work during their employment.

WRAD welcomed Georgie Bedford, Rebecca Townsend, Sue Richardson, Rob Kenna, Kerry Lee and Troy Litster to the staff team.

WRAD staff worked hard during the reporting period and were involved in a number of training opportunities to improve their skill base. Representation on local and metropolitan committees and consultation and advice to a number of areas resulted in a hectic time for staff.

I value the contribution and support of the staff team and thank them for the commitment and loyalty given.

Quality improvement

A highlight of the reporting period was the Accreditation of the WRAD Centre by the Quality Improvement Council. The external review gave us a unique opportunity to explore processes and guidelines to locate a quality service. This process is a work-in-progress as we continue to update and improve various aspects of our Centre. The Q.A. Committee continued to oversee the development of standards within the service.

During the reporting period WRAD implemented our Risk Management Plan and continued to focus on Quality Improvement across the various programs. Clients and staff engaged in the service benefited from all the hard work involved. The A.E.R. Foundation provided significant funding for this project.

Community developmentWRAD sees this area as a key strategy and introduced a number of activities to promote and educate the community in relation to alcohol and drugs. This was achieved through the following:• Working with indigenous communities, local councils and the general public.• Media articles drawing attention to alcohol and drug trends, concerns and service needs.• Major involvement in the TAFE Welfare Studies Course. Providing alcohol and drug education materials to a broad spectrum of individuals and organizations in the local community.• Providing speakers to inform the community on issues around our service provision and drugs in general.

Service LiaisonWRAD continued to liaise with local, regional and metropolitan organizations throughout the reporting period. Representation on committees including Community South West, BAYSA, Youth Alliance and VAADA provided excellent opportunities for service linking.

Clients were assisted through the relationships maintained with South West Healthcare and Psychiatric Services. I am thankful for their support. Without agency partnerships WRAD would have found it difficult to meet the pressures on our service and I acknowledge the following:

• Turning Point, Odyssey House Victoria, Barwon Youth Services, YSAS, The Salvation Army, Warrnambool Police and Courts, Glenelg/ Southern Grampians Drug and Alcohol Services, Gunditjmara and the Community South West Alliance.

WRAD enjoyed a close liaison with Barwon South West DHS and attended meetings with the Drugs Policy Branch.

Resource development and finance

In a difficult and challenging year financially WRAD met budgetary requirements. Significant income was generated through rental of offices at Merri Street.

Thanks to the Barwon South West Regional Department of Human Services WRAD was able to purchase resources and provide some gap funding for staffing needs.

As in previous years the Alcohol Education & Rehabilitation Foundation was very generous in providing project funding and support for WRAD Medical Services. I also acknowledge the income generated through our main funding body DHS, throughout the reporting period.

Significant fundraising strategies were introduced throughout 2006/07. WRAD are grateful for major support from Colin McKenna, Gwen and Edna Jones Foundation, Gary Askew, Brian Callaghan and Nick Gunner.

Of special note was the extremely generous donation of $100,000 from Geoff Handbury – thank you.

A number of other local individuals gave donations and WRAD appreciates their support.

The new purpose built facility is almost 12 months old and has provided a pleasant and well resourced environment to operate our services for the community.

ConclusionThe WRAD Centre has demonstrated good results throughout 2006/2007. Clients have been assisted on many levels and WRAD continued to provide an essential service to the region.

Along the way WRAD has experienced issues with the development of medical services and the challenge of growing services to better meet the needs of clients who are often misunderstood and disadvantaged.

There is still work to be done in the area of developing more effective partnerships and funding challenges facing the alcohol and drug workforce. However I am encouraged by our track record and look forward with confidence to the work ahead.

In closing I thank the Committee of Management, especially the Chairperson Helen Taylor, who leads a group of individuals who give so freely of their time to the community.

GEOFF SOMADirector

Clients were assisted through the relationships maintained with South West Healthcare and Psychiatric Services. I am thankful for their support. Without agency partnerships WRAD would have found it difficult to meet the pressures on our service and I acknowledge the following:

• Turning Point, Odyssey House Victoria, Barwon Youth Services, YSAS, The Salvation Army, Warrnambool Police and Courts, Glenelg/ Southern Grampians Drug and Alcohol Services, Gunditjmara and the Community South West Alliance.

WRAD enjoyed a close liaison with Barwon South West DHS and attended meetings with the Drugs Policy Branch.

Resource development and finance

In a difficult and challenging year financially WRAD met budgetary requirements. Significant income was generated through rental of offices at Merri Street.

Thanks to the Barwon South West Regional Department of Human Services WRAD was able to purchase resources and provide some gap funding for staffing needs.

As in previous years the Alcohol Education & Rehabilitation Foundation was very generous in providing project funding and support for WRAD Medical Services. I also acknowledge the income generated through our main funding body DHS, throughout the reporting period.

Significant fundraising strategies were introduced throughout 2006/07. WRAD are grateful for major support from Colin McKenna, Gwen and Edna Jones Foundation, Gary Askew, Brian Callaghan and Nick Gunner.

Of special note was the extremely generous donation of $100,000 from Geoff Handbury – thank you.

A number of other local individuals gave donations and WRAD appreciates their support.

The new purpose built facility is almost 12 months old and has provided a pleasant and well resourced environment to operate our services for the community.

ConclusionThe WRAD Centre has demonstrated good results throughout 2006/2007. Clients have been assisted on many levels and WRAD continued to provide an essential service to the region.

Along the way WRAD has experienced issues with the development of medical services and the challenge of growing services to better meet the needs of clients who are often misunderstood and disadvantaged.

There is still work to be done in the area of developing more effective partnerships and funding challenges facing the alcohol and drug workforce. However I am encouraged by our track record and look forward with confidence to the work ahead.

In closing I thank the Committee of Management, especially the Chairperson Helen Taylor, who leads a group of individuals who give so freely of their time to the community.

GEOFF SOMADirector

The 2006/2007 year has been one of enormous change and challenge for the clinical team at WRAD.

New team members and the co-location of the Barwon Youth Outreach team have added to our clinical capacity but placed added pressures on our already heavily-committed support staff in providing staff supervision and involvement in community development.

The growing public awareness of the depth of the local alcohol and drug problem has greatly increased the demand for WRAD clinical staff to provide education sessions. WRAD staff members are sadly unable to meet all these demands due to program constraints and the lack of a community development position.

The clinical team at WRAD has been active in the reciprocal rotation project with psychiatric services and has opened up clinical meetings for other services to attend. WRAD has for many years championed this model of service collaboration. As a new era dawns in the delivery of services and as blue prints are established for service collaboration, WRAD continues to fulfil its mission statement. It continues to meet its departmental statistical requirements, consult widely and service the community of the south-west.

I am very grateful for the dedication of the clinical team and appreciate the support given by our administrative staff.

DARYL FITZGIBBONClinical Manager

Twelve months in the new building has brought to the administration team a series of challenges. A new building and a new way of operation requires time for adjustment.

The admin team has been very stable over many years and the six staff members have achieved an aggregate total of 61 years service. This brings the advantage of amassed knowledge and experience.

This year Carol Main and Dawn Bermingham took long-service leave and the other admin staff were fantastic in covering this time. Thanks to Joy Shannahan, Debbie Maguire, Emmy Johnson and Kerry Lee for all their good work.

The finance department’s ongoing challenge is to balance funding sources for fee-for-service, Department of Human Services and major project funding over all WRAD programs. My thanks goes to Debbie Maguire for her dedication to the service and to Felicity Melican from Sinclair and Wilson for her ongoing support.

Our medical admin team of Carol Main and Joy Shannahan are the backbone for the doctors and provide a proficient and professional approach to their work.

The reception role has been split with Kerry Lee coming on board to share the duties with Emmy Johnson. Congratulations to Emmy for taking up the challenge of developing her skills in counselling.

DAWN BERMINGHAM Office Manager

Department of Human Services funded service statistics

Who refers people to WRAD?Self 32%Justice 28%A&DServices 13%G.P./MedicalSpecialist 8%Welfare/Health 7%PsychiatricService/Hospital 6%Family 4%Other 2%

GRAPH1The largest percentage of clients self refer to the WRAD Centre. There has beenanincreaseinclientsreferredthroughtheJustice/Policesystem.OthersourcesofreferralincludeG.P.’s,Family,A&D,HealthandPsychiatricServices.

What are the primary problem drugs? Alcohol 53%Cannabis 24%Amphetamines 10%Opioidanalgesics 5%VolatileSubstances 5%Heroin 3%Other Benzos

GRAPH2AlcoholcontinuestopresentthemostproblemsforclientsassessingtheCentre.Cannabisusehasdroppedcomparedtothepreviousreportingperiod.Anincreaseinamphetamineuseandopioidanalgesicshasbeenreportedforthe06/07year.

10–14 10-19 17.5%15–19

20–24 20-29 31.5%28–29

30–34 30-39 26%35–39

40–44 40–49 15%45–49 50andover 10%

0

5

10

15

20

25

30

35

Self Justice A&DServices

G.P./MedicalSpecialist

Welfare/Health

PsychiatricService/Hospital

Family Other

0

10

20

30

40

50

60

Alcohol Opioidanalgesics

VolatileSubstances

Heroin Other BenzosCannabi Amphetamines

0

5

10

15

20

25

30

35

10 – 19 20 – 29 30 – 39 40 – 49 50 – 59

s

GRAPH3Therehasbeenadecreaseinthenumberofunder20yearoldspresentingattheCentre.Howeverthenumberofunder30yearoldsstillrepresentsalmost50%oftotalcontacts.Anemergingtrendisrecordedinthepercentageofover50yearoldsseekingtreatment.

What services do people use?Clients have continued to use the broad range of programs available. AgainMedicalServiceshavebeenheavilyutilizedthroughoutthe06/07period.WRADclientshavebeenassistedthroughDepartmentofHumanServicescoreservicesincluding counselling, accommodation and withdrawal, acquired brain injurysupportandreferraltoappropriateservices.

Medical Services 42%DHS Core Services 28%Needle Syringe Program 21%Custodial Medicine 9%

GRAPH4

Highlights 2006/2007• WRAD clients achieved significant treatment outcomes including abstinence, reduction in risks associated with drug use, positive changes in physical/emotional health status and improved relationships with family/ friends.• WRAD featured in over 50 media articles focusing on drug trends and community education.• The Barwon Youth Access program funded by the Attorney General’s Department provided pathways to support young people in the region.• WRAD appointed a full time General Practitioner to assist with medical support for WRAD clients.• WRAD received a significant grant from the Department of Human Services to upgrade I.T., vehicle and resources.• WRAD’s new Merri Street Building is completed and providing modern facilities for clients in the region.• WRAD achieved Accreditation through the Quality Improvement Council.

0

10

20

30

40

50

MedicalServices

DHS CoreServices

NeedleSyringeProgram

CustodialMedicine

WESTERN REGION ALCOHOL AND DRUG CENTRE INC.

COMMITTEE’S REPORT

YourcommitteememberssubmitthefinancialreportofWesternRegionAlcoholandDrugCentreInc.forthefinancialyearended30thJune,2007.

Committee MembersThenamesofcommitteemembersthroughout theyearandat thedateof thisReportare:

HelenTaylor JamesNicol PeterMcMillan IanArmstrong GlenysPhillpot GordonMain RodgerBrough(resigned17thJuly,2007) LeonieSaundry(resigned27thApril,2007) PeterNichols(appointed21stMay,2007)

Principal ActivitiesTheprincipalactivitiesoftheAssociationduringthefinancialyearweretoprovidesupportandcounsellingservicesfordrugandalcoholimpactedpersons.

Significant ChangesNosignificantchangeinthenatureoftheseactivitiesoccurredduringtheyear.

Operational ResultThelossfortheyearamountedto$13,669(2006-$61,433loss).

HelenTaylor,Chairperson

PeterMcMillan,Treasurer

Dated this 30th day of October, 2007.

WESTERN REGION ALCOHOL AND DRUG CENTRE INC

INCOME STATEMENT FOR THE YEAR ENDED 30TH JUNE, 2007 2007 2006 Note $ $ Income

FundingandGrants 663,375 807,476Interest 5,477 35,931DonationsandGifts 152,321 1,865FeeforServiceIncome 355,930 314,136Reimbursements,RecoveriesandSundries 11,242 15,234ProfitonSaleofPlantandEquipment 4,362 618AuspicedFundingandRelatedIncome 58,710 131,375CapitalFundraisingIncome - 45,000RentalIncome 22,963 - 1,274,380 1,351,635 Expenditure

AuspicedFundingExpenditure (40,699) (96,998)CapitalFundraisingCosts - (8,142)ExpensesincurredforMooreStreet(excluding capitalised items)(4,998) (5,038)Depreciation (77,632) (53,000)FinanceCosts (31,888) (3,706)MedicalCosts (10,618) (5,565)MotorVehicleCosts (44,947) (45,601)OfficeCosts(including workshop/conference fees) (113,293) (108,508)PayrollCosts (893,761) (945,925)ProfessionalandConsultancyCosts (17,938) (13,127)PropertyCosts (34,987) (92,638)PublicRelations/Marketing (5,113) (8,524)Utilities (12,175) (6,684)ScrappedPlantandEquipment - (19,612) (1,288,049)(1,413,068)PROFIT/(DEFICIT) FOR THE YEAR (13,669) (61,433)

WESTERN REGION ALCOHOL AND DRUG CENTRE INC BALANCE SHEET AS AT 30TH JUNE, 2007 2007 2006 Note $ $ EQUITY RetainedEarnings 1,668,045 1,681,714

TOTAL EQUITY 1,668,045 1,681,714

REPRESENTED BY: CURRENT ASSETS CashandCashEquivalents 5 197,565 164,425Receivables 6 47,542 69,202Investments 7 - 33,191TOTAL CURRENT ASSETS 245,107 266,818 NON CURRENT ASSETS Property,PlantandEquipment 2,088,236 1,791,282TOTAL NON CURRENT ASSETS 2,088,236 1,791,282 TOTAL ASSETS 2,333,343 2,058,100 CURRENT LIABILITIES TradeandOtherPayables 9 149,785 103,295InterestBearingLiabilities 10 5,157 173,090Provisions 11 64,109 61,695TOTAL CURRENT LIABILITIES 219,051 338,080 NON CURRENT LIABILITIES InterestBearingLiabilities 10 441,175 -Provisions 11 5,072 38,306TOTAL NON CURRENT LIABILITIES 446,247 38,306 TOTAL LIABILITIES 665,298 376,386 NET ASSETS 1,668,045 1,681,714

WESTERN REGION ALCOHOL AND DRUG CENTRE INC STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30TH JUNE, 2007 Retained Earnings Total $ $ Balance at 1st July, 2005 1,743,147 1,743,147

DeficitAttributabletoMembers (61,433) (61,433)Transfer(from)/toCapitalReserve - Balance at 30th June, 2006 1,681,714 1,681,714 DeficitAttributabletoMembers (13,669) (13,669)Balance at 30th June, 2007 1,668,045 1,668,045

WESTERN REGION ALCOHOL AND DRUG CENTRE INC CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH JUNE, 2007 2007 2006 Note $ $ OPERATING ACTIVITIES ReceiptsfromOrdinaryActivities 649,890 738,666ReceiptsforNonOperatingActivities 646,150 574,236PaymentsforOperatingCosts (1,153,412) (1,211,100)PaymentsforNonOperatingActivities (45,697) (110,178)

NetCashFlowfromOperatingActivities 13(a) 96,931 (8,376) INVESTING ACTIVITIES PaymentsforProperty,PlantandEquipment 370,224) (1,120,338)ProceedsfromSaleofProperty,PlantandEquipment- 78,250

NetCashFlowusedinInvestingActivities (370,224) (1,042,088) FINANCING ACTIVITIES NetBorrowingsSourced/(RepaymentofBorrowings) 73,242 163,920

NetCashFlowsfromFinancingActivities 273,242 163,920

NetIncrease/(Decrease)inCashandCashEquivalents (51) (886,544) CashandCashEquivalentsatStartofYear 197,616 1,084,160 Cash and Cash Equivalents at End of Year 13(b) 197,565 197,616

WESTERN REGION ALCOHOL AND DRUG CENTRE INC.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2007.

Note 1 Statement of Accounting PoliciesThis Financial Report is a special purpose financial report prepared in order tosatisfy reporting requirementsof theAssociations IncorporationAct (Vic.)1981.TheCommitteemembershavedeterminedthattheAssociationisnotareportingentity.

This Financial Report has been prepared in accordance with the requirementsof the Associations Incorporation Act (Vic.) 1981 and the following AustralianAccountingStandardsandothermandatoryprofessionalreportingrequirements:AASB101 PresentationofFinancialStatementsAASB107 CashFlowStatementsAASB108 AccountingPolicies,ChangesinAccountingEstimates&ErrorsAASB110 EventsAftertheBalanceSheetDateAASB118 RevenueAASB119 EmployeeBenefitsAASB1031 MaterialityAASB1048 InterpretationandApplicationofStandards

No other Australian Accounting Standards or other mandatory professionalreportingrequirementshavebeenapplied.

TheFinancialReport ispreparedonanaccrualsbasisandisbasedonhistoriccostsanddoesnottakeintoaccountchangingmoneyvaluesor,exceptwherestated,currentvaluationsofnoncurrentassets.

Thefollowingmaterialaccountingpolicies,whichareconsistentwiththepreviousfinancialperiodunlessotherwisestated,havebeenadoptedinthepreparationofthisreport.

a) Buildings, Plant and EquipmentPlant, Equipment, Furniture and Motor Vehicles are included at cost less theiraccumulateddepreciationandimpairmentlosses.Depreciationiscalculatedusingthediminishingvaluemethod,basedontheexpectedusefullifeoftheasset.Thedepreciationratesusedrangedfrom7.5%to100%forplantandequipmentand22.5%formotorvehicles. LandandBuildingsarecarriedatcost. Thecarryingamountofproperty,plantandequipmentisreviewedannuallybytheCommitteetoensureitisnotinexcessoftherecoverableamountofthoseassets.

b) InvestmentsInvestmentsaremeasuredonthecostbasis.

WESTERN REGION ALCOHOL AND DRUG CENTRE INC.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (CONT.) FOR THE YEAR ENDED 30TH JUNE 2007

Note 1 Statement of Accounting Policies (cont.)

c) Cash and Cash EquivalentsForthepurposeoftheCashFlowStatement,cashincludescashonhand,atbanksandondeposit.

d) Goods and Services Tax (GST)Revenues,expensesandassetsarerecognisednetoftheamountofGST,exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxOffice.InthesecircumstancestheGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartofanitemoftheexpense.ReceivablesandpayablesintheStatementofFinancialPositionareshowninclusiveofGST.

e) Income StatementTheIncomeStatementdisclosesseparately incomeandrevenueitemsbetweenOrdinaryActivitiesandthoserelatingtoOtherActivities.

OrdinaryActivitiesrelatetothoseactivitiesundertakenbytheorganisationinthenormalcourseoftheiroperationsandrelatetobothgovernmentfundedactivitiesandfeeforserviceprograms.OtheractivitiesrelatetocapitalfundingandgrantsreceivedbytheorganisationandauspicedfundsprovidedbytheDepartmentofHumanServicesforprogramsoperatedexternaltotheOrganisationactivities.

f) LeasesLeases of fixed assets, where substantially all the risks and benefits incidentalto the ownership of the asset, but not the legal ownership, are transferred totheAssociation,areclassifiedasfinanceleases. Financeleasesarecapitalisedrecordinganassetandaliabilityequaltothepresentvalueoftheminimumleasepayments,includinganyguaranteedresidualvalues.Leasedassetsareamortisedovertheirusefullife.Paymentsforleasesareallocatedbetweenreductionoftheleaseliabilityandleaseinterestforperiod.

Operatingleaseswheretherisksandbenefitsoftheassetretainwiththelessorarechargedasexpenditure.

g) Income TaxTheAssociation’sCommitteehasdeterminedthattheAssociationisexemptfromincometaxunderSection50-10oftheIncomeTaxAssessmentAct.

WESTERN REGION ALCOHOL AND DRUG CENTRE INC.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (CONT.) FOR THE YEAR ENDED 30TH JUNE 2007

Note 1 Statement of Accounting Policies (cont.)

2 Events Occurring Subsequent to Reporting Date TheCommitteeisnotawareofanyeventswhichhaveoccurredsubsequenttoreportingdatewhichwouldmateriallyaffectthefinancialstatementsasat30thJune2007.

3 Related Parties TheAssociationdidnotenterintoanycontractswithrelatedparties.

4 Segment Reporting TheAssociationoperatespredominantlyinonebusinessandonegeographicalsegment,being in theprovisionof support andcounsellingservices in theWesternDistrictofVictoria.

WESTERN REGION ALCOHOL AND DRUG CENTRE INC NOTES TO AND FORMING PART OF THE ACCOUNTS [CONT.] FOR THE YEAR ENDED 30TH JUNE, 2007 2007 2006 $ $ 5. Cash and Cash Equivalents

AuspiceAccount 17 17MainAccount 148,301 103,301V2Account 16,757 10,206WRAMSAPAccount 28,183 20,462MedicalServicesAccount 4,307 30,439

197,565 164,425 6. Receivables

TradeDebtors 47,542 69,202 47,542 69,202 7. Investments

FixedTermDeposits - 33,191

8. Property, Plant and Equipment Land[MerriStreet] 372,298 372,298Buildings[MerriStreet] 1,255,928 955,143Less: AccumulatedDepreciation (16,948) (61) 1,238,980 955,082

LandandBuildingsatCost(MooreStreet) 271,000 271,000Total Land and Buildings 1,882,278 1,598,380 PlantandEquipmentatCost 312,870 251,110Less: AccumulatedDepreciation (198,000) (160,542) 114,870 90,568 MotorVehiclesatCost 92,098 133,576Less: AccumulatedDepreciation (5,735) (37,845) 86,363 95,731 LeasedPlant,Equipment,FurnitureandFittings 19,556 19,556Less: AccumulatedAmortisation (14,831) (12,953) 4,725 6,603

2,088,236 1,791,282

WESTERN REGION ALCOHOL AND DRUG CENTRE INC NOTES TO AND FORMING PART OF THE ACCOUNTS [CONT.] FOR THE YEAR ENDED 30TH JUNE, 2007 2007 2006 $ $ 9. Payables

TradeCreditorsandSundryAccruals 63,381 51,422GSTLiability 19,153 (14,200)EmployeeBenefits 67,251 66,073 149,785 103,295

10. Interest Bearing Liabilities Current LeaseLiability 5,157 4,281BridgingLoan-ANZ - 168,809 5,157 173,090 Non Current LeaseLiability 13,385 -Loan-ANZ 427,790 - 441,175 -

11.Provisions (a) Current LongServiceLeaveBenefit 64,109 61,695

(b) Non Current LongServiceLeaveBenefit 5,072 38,306

13. Cash Flow Information (a) Reconciliation of Cash Flow from Operations with Net ProfitNetDeficit (13,669) (61,433)AddBackNon-CashFlowsinOperatingProfit:Depreciation 77,632 53,000(Profit)/LossonSaleofProperty,PlantandEquipment (4,362) (618)ScrappedAssets - 19,612 MovementinAssetsandLiabilitiesIncrease/(Decrease)inTradeandOtherPayables 46,490 (70,666)Increase/(Decrease)inEmployeeEntitlements (30,820) 48,224(Increase)/DecreaseinReceivables 21,660 3,505Cash Flows from Operations 96,931 (8,376)

WESTERN REGION ALCOHOL AND DRUG CENTRE INC

NOTES TO AND FORMING PART OF THE ACCOUNTS [CONT.] FOR THE YEAR ENDED 30TH JUNE, 2007 2007 2006 $ $ 13. Cash Flow Information (cont.) (b) Reconciliation of Cash and Cash Equivalents

CashandCashEquivalentsattheendofthefinancialyearasshownintheCashFlowStatementisreconciledtotherelateditemsintheBalanceSheetasfollows: CashAssetsatCall 197,565 164,425Investments - 33,191 197,565 197,616

14. Contingent Liabilities WesternRegionAlcoholandDrugCentreInc.haslodgedthetitleforpropertyheldinWarrnamboolwiththeAustraliaandNewZealandBankingGroupLimited,whointurnhaveprovidedanoverdraftfacility(undrawnasat30/6/06). Securityagainstspecificchattelsisheldforinterestbearingliabilities.

15. Leasing Commitments (a) Finance Lease Financeleasecapitalisedintheaccountsinaccordance withtheaccountingpoliciesdefinedinNote1:

Payable: -lessthan1year 5,157 4,281-between1yearand5years 13,385 - 18,542 4,281LessFutureFinanceCharges TotalLeaseLiability 18,542 4,281 (b) Operating Lease Commitment Theorganisationhasnooperatingleasecommitmentsat30thJune,2007.

WESTERN REGION ALCOHOL AND DRUG CENTRE INC.

COMMITTEE OF MANAGEMENT DECLARATION

ThecommitteehasdeterminedthattheAssociationisnotareportingentityandthatthisspecialpurposefinancialreportshouldbepreparedinaccordancewithaccountingpoliciesoutlinedinNote1tothefinancialstatements

In accordance with a resolution of the Committee of Management of WesternRegionAlcoholandDrugCentreInc.wedeclarethat:

In the opinion of the Committee of Management:ThefinancialstatementsandnotesoftheAssociationareinAccordancewiththeAssociationsIncorporationAct(1981),including:

[a]givingatrueandfairviewofthefinancialpositionofWesternRegionAlcoholandDrugCentre Inc.asat30thJune,2007and itsperformance for theyearendedonthatdate;and

[b]At thedateof thisstatement therearereasonablegroundstobelievethatWesternRegionAlcoholandDrugCentreInc.willbeabletopayitsdebtsasandwhentheyfalldue.

ThisStatementismadeinaccordancewitharesolutionoftheCommitteeandissignedforandonbehalfoftheCommitteeby:

Chairperson CommitteeMemberHelenTaylor PeterMcMillan

Dated this 30th day of October, 2007