stella maris aged care facility...stella maris aged care facility abn 45 147 153 035 directors’...

Stella Maris Aged Care Facility

ABN 45 147 153 035

Annual Report 30 June 2019

Stella Maris Aged Care Facility ABN 45 147 153 035

Annual Report – 30 June 2019

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Contents

Directors’ Report ................................................................................................................................................................... 1

Financial Report Statement of Profit or Loss and Other Comprehensive Income ........................................................................................ 7 Statement of Financial Position.......................................................................................................................................... 8 Statement of Changes in Equity ......................................................................................................................................... 9 Cash Flow Statement ........................................................................................................................................................ 10 Notes to the Financial Statements ................................................................................................................................... 11

Directors’ Declaration .......................................................................................................................................................... 29

Independent audit report to the members ......................................................................................................................... 30

The annual report covers Stella Maris Aged Care Facility as an individual entity and is presented in Australian dollars. Stella Maris Aged Care Facility is a not-for-profit company limited by guarantee, incorporated and domiciled in Australia. The registered office of the Company is located at: 6 Victoria Road Parramatta, NSW 2150 The principal place of business of the Company is located at: 6 Coast Avenue Cronulla, NSW 2230 The annual report was authorised for issue by the directors on 8 October 2019. The Company has the power to amend and reissue the annual report.


Directors’ Report – 30 June 2019

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Your directors present their report on the Company for the year ended 30 June 2019.

Directors

The following persons held office as directors of the Company during the whole of the financial year and up to the date of this report (unless otherwise stated):

Mr William Joseph Walker (Chair – appointed 6 July 2011)

Ms Roslyn Conor Driscoll (appointed 6 July 2011)

Dr Jane Elizabeth Givney (appointed 6 July 2011)

Sr Catherine Harris, RSM (appointed 6 July 2011)

Mr Peter Robert Poppett (appointed 3 July 2012)

Ms Catherine Sammut (appointed 12 September 2012 – resigned 11 December 2018)

Mrs Katherine Roughan (appointed 21 October 2014)

Mrs Jody Bovell (appointed 21 October 2014 – resigned 9 October 2018)

Mr Peter Mackinnon (appointed 1 December 2016)

Mrs Loretta El-Khalil (appointed 14 February 2017)

Mrs Moira Parker (appointed 14 February 2017)

Mr John Williams (appointed 21 October 2018)

Judge Christopher O’Brien (appointed 11 June 2019)

Ms Alexandra Zammit (appointed 13 August 2019)

Objectives and principal activities

The short and long term objectives and principal activities of the Company, as detailed in its constitution, are:

• Provide accommodation and care for the aged and disabled in an integrated living environment;

• Provide in conjunction with the accommodation services such as health, domestic or maintenance support services as may be assessed necessary by reason of the particular age or disability of the residents;

• Assist and ensure that the continuing independence of residents is maintained as far as practicable and to provide appropriate support and encourage mutual care and concern among residents;

• To uphold the Mission, Vision and Values in accordance with our Trustees, The Sisters of Mercy, Parramatta;

• Maintain the residential aged care facility including the landscaping and grounds in a high standard of condition; and

• Ensure that the Company continues to remain economically and structurally viable through efficient and diligent financial and operational management.

Performance measurement

The directors monitor the Company’s progress against these objectives at regular board meetings including:

• Reports on all aspects of the Company’s operations presented at regular board meetings, Finance Committee and Quality Committee meetings including: - Mission, Advocacy & Community Relations - Finance & Audit - People & Culture - Quality & Safety - Audit & Risk

• Feedback from clients who have accessed the Company’s services through a range of client-focused mechanisms such as patient satisfaction surveys; and

• An overview of the Company’s Mission related projects including monies spent.



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2019 $

2018 $

Review of operations

Total revenue and other income 8,321,154 7,414,459

Operating surplus 776,029 402,596

The financial performance includes the effect of a number of uncontrollable items as follows:

Net gain on disposal of property, plant and equipment - (617)

Donation income 300,300 9,882

After adjusting for the above, a summary of the normalised revenues and results would be as follows:

Normalised total revenue and other income (unaudited) 8,020,854 7,405,194

Normalised operating surplus (unaudited) 475,729 393,331

Stella Maris Aged Care Facility performance increased by $82,398 from a normalised surplus of $393,331 to a normalised surplus of $475,729. The increase in Stella Maris performance was due to the temporary ACFI increase of 9.50% paid to providers on existing ACFI scores for the period 20 March 2019 to 30 June 2019. This is estimated to have delivered an additional $140,000 of revenue. However, the commonwealth indexation to residential aged base care subsidies on 1 July 2018 was insufficient to cover the increase in wages, supply and overhead costs in the financial year resulting in less than a full realization of the temporary increase.

During the prior year, further additional issues were noted in relation to previously completed refurbished bathrooms which will require rectification. At the date of this report the number of bathrooms effected and the scope of works required to rectify the issues are to be determined. It is the Director’s opinion based upon the information available that the Project Manager and/or Head Contractor will be responsible for the rectification costs.

The Company is not-for-profit and so strives to make a surplus to keep the health service sustainable, to generate funds to replace assets, to undertake charitable works and to further invest in the mission to promote the healing ministry of Christ.

Going Concern

The Company’s Statement of Financial Position shows an excess of current liabilities over current assets of $3,065,900 compared to the prior year’s $4,035,619. However, included within current liabilities are accommodation payables of $16,737,475 (2018: $15,540,125) which are required to be categorised as current liabilities because there is no ability to defer their repayment beyond twelve months. In the normal course of business not all of these liabilities will crystallise within one year and those that do are usually replaced by accommodation payables paid by new incoming residents.

The Company has a substantial net asset position of $3,520,371 at 30 June 2019 compared to the prior year’s $2,744,343.

These factors lead the directors and key management personnel to the opinion that the Company can pay its debts as and when they fall due and accordingly the financial report has been prepared on a going concern basis.

Dividends

The Company’s constitution precludes the payment of dividends and accordingly no dividend has ever been paid or declared.



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Member’s guarantee

The Company is incorporated under the Corporations Act 2001 and is a public company limited by guarantee. If the Company is wound up the constitution states that each member is required to contribute a maximum of $100 each towards meeting the obligations of the Company. At 30 June 2019, the Company had 5 members (2018: 5) so the maximum amount to be contributed towards meeting the obligations of the Company would be $500 (2018: $500).

Subsequent events

There have been no significant events occurring after reporting date that have had any material impact on the results of the Company as reported in the financial report.

Indemnity and insurance of directors and officers

The Company’s directors and executives have been indemnified for costs incurred, in their capacity as a director or executive, for which they may be personally held liable, except where there is a lack of good faith.

Names, qualifications, experience and special responsibilities of directors

Chair

Mr William Joseph Walker (Current – Appointed 6 July 2011)

Qualifications B.Sc., Dip. Ed., Dip. Ed (RE), Dip Geoscience, M.Ed., M. Acc., CPA.

Experience Mr Walker is the Chief Executive Officer and Chancellor for the Diocese of Wollongong. Prior to this role, he has worked in education for many years as a teacher, in leadership positions in schools and most recently as Director of Financial Services for the Catholic Education Office Sydney. He is a member of numerous Councils and committees for the Diocese of Wollongong and its agencies. He is also a director of the Australian Catholic Superannuation and Retirement Fund.

Special Responsibilities Chair of Board and Chair of Quality Committee.

Members

Ms Roslyn Conor Driscoll (Current – Appointed 6 July 2011)

Qualifications BA LLB (Sydney) LLM (UNSW).

Experience Ms Driscoll is currently a principal of a legal practice with offices in Taren Point and Young NSW. She practises in her maiden name Roslyn O’Reilly and specialises in litigation with an emphasis on family law. Prior to taking up her current role, she was employed in the litigation department of a mid-sized city firm. In the early 1990’s she was employed as the Legal Services Manager Funds Administration Division of the GIO.

Dr Jane Elizabeth Givney (Current – Appointed 6 July 2011)

Qualifications MBBS (UNSW), Grad. Dip. Family Medicine, M. Aviation Medicine, DAME.

Experience Dr Givney is the principal of a general practice in Cronulla Sydney and has run the practice for 18 years. She is also on the teaching staff at the University of Notre Dame, Sydney and is employed as a Senior Lecturer [Medicine] at the School of Medicine Sydney. Dr Givney is a Member of the Royal Australian College of General Practitioners and the Australian Medical Association and has previously been a member of the Parish Council of St Aloysius Cronulla. Dr Givney is the General Practitioner to a number of Stella Maris residents.



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Sr Catherine Harris, RSM (Current – Appointed 6 July 2011)

Qualifications Primary School Teacher, Nurse, Grad. Dip. Development Studies, Grad. Cert. Aged Care.

Experience Sr Catherine has been a member of the Congregation of the Sisters of Mercy, Parramatta, since 1959. She graduated as a Primary School Teacher in 1961 and taught in many schools in Sydney, being School Principal of two schools at Surry Hills and Bondi Beach. In 1978 she began training as a General Nurse at St Vincents Hospital, Sydney, graduating in 1981. In 1985 she graduated as a Nurse Midwife from Mercy Maternity Hospital, Melbourne. She worked for seven years as a Tutor/Matron at the Rihau Health Centre, Aitape, Papua New Guinea and in 1993 completed a Graduate Diploma in Development Studies at Kimmage Manor, Dublin. Following the course, she worked for short periods in East Timor and South Sudan as an Aid Worker and has since completed a Graduate Certificate in Aged Care with the NSW College of Nursing. Sr Catherine is a current Member of the Australian College of Nursing.

Mr Peter Robert Poppett (Current – Appointed 3 July 2012)

Qualifications M. Commerce, FCPA, Dip. Financial Planning.

Experience Mr Poppett retired in 2002 from the Commonwealth Bank of Australia after a 37 year career at senior executive level in banking and finance with domestic and international experience. He has held board positions as both Director (2000-2003) and Chairman (2003-2006) of the Catholic Development Fund, Archdiocese of Sydney. He has also been a consultant to the boards of Corporate Apparel Group (2004-February 2012), Mellick Investment Corporation Property Group (2008-2011) and Trico Constructions Pty Ltd (2008-2010). He is also Auditor of the Cronulla RSL Swimming Club.

Special Responsibilities Deputy Chair of Board and Chair of Finance and Audit Committee.

Ms Catherine Sammut (Resigned – 11 December 2018)

Qualifications Diploma of Financial Accounting, Certificate TAE40110 Training and Assessing, Pastoral Care Certificate, Diploma of Management.

Experience Ms Sammut is currently employed as the Pastoral Associate of St Aloysius parish Cronulla, and is also a part time Finance Teacher at TAFE NSW. Ms Sammut previously was a company director of a Sydney based importing company and also held the position of Financial director. She is also a board member of the Saint George Hospital Cancer Care Bezzina House.

Ms Katherine Roughan (Current – Appointed 21 October 2014)

Qualifications Registered Nurse (non-practicing), Bachelor Applied Sciences Nursing (Sydney), Master of Management (UTS), Grad Certs Intensive Care and Emergency Nursing.

Experience Ms Roughan is principal of Kathy Roughan Health Planning Pty Ltd since 1997 and has been a Health Services and Health Facility Planner since 1988.

Ms Roughan is an Associate Fellow of the Australasian College of Health Service Management (ACHSM) and Australian Healthcare and Hospitals Association (AHHA).

Ms Jody Marie Bovell (Resigned – 9 October 2018)

Qualifications B.Bus, CPA.

Experience Ms Bovell has held several senior positions in finance and treasury in banking, aviation, property and education sectors. Ms Bovell is currently the Business Manager at the largest boys boarding college in Australia and prior to that was the Head of Financial Administration for system of 150 schools in the Archdiocese of Sydney.

Special Responsibilities Company Secretary.



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Mr Peter Kenneth Mackinnon OAM (Current – Appointed 1 December 2016)

Qualifications Accountancy Certificate, Cost Accountancy Certificate, FCPA

Experience Mr Peter Mackinnon has been consulting in the aged care field for over 33 years and is the Principal of Peter K Mackinnon & Associates that provides operational, financial and management advice and assistance to residential aged care operators. Over the past 25 years he has facilitated education programs covering operational, financial and funding aspects of residential age care operations. Peter has been an Administrator of an aged care service as well as the Business Manager of a group that operated 6 aged care services. He is and has been a Director of companies that provide residential and home care as well as operated retirement villages.

Mrs Loretta El Khalil (Current – Appointed 14 February 2017)

Qualifications Leaving Certificate from Our Lady of Mercy College, Coast Avenue, Cronulla, Certificate 111 in Financial Services (Mercantile Agents), Commercial/Private Inquiry Licence (CAPI), Justice of the Peace

Experience Five years at Australia Embassy Beirut, Lebanon (PA to the Senior Migration Officer), Two years at UNRWA (United Nations Refugee Women’s Association), Clerical work from 1994 to 1999 at Australian Mercantile Bureaux Pty Ltd, Currently operating my own business – Reports For You – since January 2000.

Work on a contract basis with Becker Commercial Services Pty Ltd providing credit reports on companies and businesses in Australia and New Zealand, undertake skip tracing and debt collecting.

Mrs Moira Parker (Current – Appointed 14 February 2017)

Qualifications Registered Nurse, Occupational Health and Safety Nursing (Higher Certificate), Institute of Counselling Certificate (Strathfield). Home Economics, Home and Food Services advanced Certificate (East Sydney Tafe)

Experience Retired from St George Hospital in 2010, following a thirty year career in nursing. This included active involvement in many areas of nursing, as well as community based education programs. Prior to nursing, Mrs Parker worked with Department Foreign Affairs in London for two years. Since retirement Mrs Parker has travelled extensively, as well as volunteers at the Supreme Court Darlinghurst and the Sisters of Charity Outreach Program.

Mr John Williams (Current- Appointed 21 October 2018)

Qualifications: B.Ec, MBA, FCPA

Experience: Mr Williams has over 35 years’ experience in Finance. He has held senior finance roles across retailing, wholesaling, facilities management, health and education. His most recent full time role was as Financial Controller for Sydney Catholic Schools which manages over 150 schools in the Archdiocese of Sydney

Special Responsibilities Company Secretary.

Judge Christopher O’Brien AM – (Current – Appointed 11 June 2019)

Qualifications; BA LLB (Sydney)

Experience: Admitted as a solicitor in 1983, Judge O’Brien worked in the Sutherland Shire between 1983 and 2007 in all areas of litigation but with an emphasis on criminal and family law. For most of that period he conducted a practice on his own account or in partnership. He was appointed a Magistrate of the Local Court of New South Wales in February 2007. In November 2014 he was appointed as a Deputy Chief Magistrate of the Local Court and on 9 April 2018 was sworn in as a judge of the District Court of New South Wales. He was appointed a member of the Order of Australia (AM) in the 2019 Queens birthday honours for “Significant service to the law and the judiciary”.

Ms Alexandra Zammit (Current- Appointed 13 August 2019)

Alexandra has worked in the aged care and broader healthcare sector, for over 30 years holding senior management roles in the areas of clinical care, teaching, research and corporate services.

During her time as CEO of Thomas Holt, Alexandra pioneered LiveCare 360 - a model for introducing leading edge health monitoring, communications and entertainment into aged care facilities - to improve services for residents, families, and staff.



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The model, which was rolled out in Thomas Holt’s first Smart Building, includes the use of robotics, sensors and machine intelligence to create a unique care environment that can predict wellness conditions or falls, and biometric and room sensor control to identify pending illness, stress and declining cognitive ability.

Alexandra has a passion for human and community services and is known for her experience in corporate governance and her commitment to transforming our healthcare system so that it better supports members of the community.

Meetings of Directors

The number of meetings of the Company’s directors held during the year ended 30 June 2019, and the numbers of meetings attended by each director were:

Number of Meetings

Attended Number of Meetings Held While in Office

Mr William Joseph Walker (Chair – appointed 6 July 2011) 7 7 Ms Roslyn Conor Driscoll (appointed 6 July 2011) 7 7

Dr Jane Elizabeth Givney (appointed 6 July 2011) 5 7

Sr Catherine Harris, RSM (appointed 6 July 2011) 7 7

Mr Peter Robert Poppett (appointed 3 July 2012) 6 7

Ms Catherine Sammut (resigned 11 December 2018) 1 2

Ms Katherine Roughan (appointed 21 October 2014) 5 7

Ms Jody Bovell (resigned 9 October 2018) 1 2

Mr Peter Kenneth Mackinnon (appointed 1 December 2016) 2 7

Mrs Loretta El Khalil (appointed 14 February 2017) 7 7

Mrs Moira Parker (appointed 14 February 2017) 7 7

Mr John Williams (appointed 21 October 2018) 3 4

Judge Christopher O’Brien (appointed 11 June 2019) 0 1

Auditor

StewartBrown continues in office in accordance with section 327 of the Corporations Act 2001. No non audit services were provided by StewartBrown as disclosed in note 17.

This report is made in accordance with a resolution of the directors.

___________________________ Mr William Joseph Walker, Chair Sydney 8 October 2019


Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2019

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Notes 2019

$ 2018

$

Revenue 2 7,910,599 7,394,953

Other income 3 410,555 19,506

Total revenue and other income 8,321,154 7,414,459

Salaries and wages (3,681,912) (3,516,860)

Superannuation 4 (363,600) (353,279)

Other employee benefits (683,853) (671,360)

Goods and services (1,973,256) (1,716,647)

Finance costs 4 (61,555) (67,538)

Repairs and maintenance (149,258) (149,510)

Depreciation and amortisation 4 (528,571) (473,564)

Other expenses from ordinary activities (103,120) (63,105)

Total expenses (7,545,125) (7,011,863)

Operating surplus 776,029 402,596

Fair value of contributed assets - -

Total surplus attributable to members 776,029 402,596

Other comprehensive income - -

Total comprehensive income attributable to members 776,029 402,596

The above statement should be read in conjunction with the accompanying notes.


Statement of Financial Position As at 30 June 2019

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Notes 2019

$ 2018

$

ASSETS Current Assets Cash and cash equivalents 5 12,322,013 11,204,003

Trade and other receivables 6 147,093 100,280

Investments 7 2,669,124 1,313,739

Total Current Assets 15,138,230 12,618,022

Non-Current Assets

Property, plant and equipment 8 5,859,886 6,046,464

Intangibles 9 787,754 791,754

Total Non-Current Assets 6,647,640 6,838,218

Total Assets 21,785,870 19,456,240

LIABILITIES

Current Liabilities

Trade and other payables 10 745,247 529,763

Accommodation payables 11 16,737,475 15,540,125

Provisions 12 721,408 583,753

Total Current Liabilities 18,204,130 16,653,641

Non-Current Liabilities

Provisions 13 61,369 58,256

Total Non-Current Liabilities 61,369 58,256

Total Liabilities 18,265,499 16,711,897

Net Assets/(Liabilities) 3,520,371 2,744,343

Equity

Retained surpluses 14 3,520,371 2,744,343

Total Equity 3,520,371 2,744,343



Statement of Changes in Equity For the Year Ended 30 June 2019

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Notes Retained

Surplus Total

$ $

2019

Balance 1 July 2018 2,744,343 2,744,343

Total surplus attributable to member 776,029 776,029


Total comprehensive income for the year 776,029 776,029

Balance 30 June 2019 14 3,520,372 3,520,372

2018

Balance 1 July 2017 2,341,746 2,341,746

Total surplus attributable to member 402,596 402,596


Total comprehensive income for the year 402,596 402,596

Balance 30 June 2018 14 2,744,342 2,744,342



Cash Flow Statement For the Year Ended 30 June 2019

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Notes 2019

$ 2018

$

Cash flows from operating activities

Receipts from customers (including GST) 7,490,580 7,058,200

Payments to suppliers and employees (including GST) (6,520,791) (6,370,649)

Interest received 272,255 297,902

Donations received 300,300 -

Net cash flow from operating activities 21 1,542,344 985,453

Cash flows from investing activities

Payments for property, plant, equipment and intangibles (406,098) (1,108,140)

Payment for investments (1,200,000) (1,300,000)

Net cash flow from investing activities (1,606,098) (2,408,140)

Cash flows from financing activities

Proceeds from accommodation payables 4,729,039 4,298,000

Repayment of accommodation payables (3,547,275) (3,856,257)

Net cash flow from financing activities 1,181,764 441,743

Net increase in cash and cash equivalents held 1,118,010 (980,944)

Cash at the beginning of the financial year 11,204,003 12,184,947

Cash at the end of the financial year 5 12,322,013 11,204,003



Notes to the Financial Statements 30 June 2019

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1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial report includes only the financial statements of Stella Maris Aged Care Facility (the “Company”).

(a) Basis of Preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, the Corporations Act 2001 and the Australian Charities and Not-for-profits Commission Act 2012 (Cth). The financial report is presented in Australian dollars.

Historical Cost Convention

These financial statements have been prepared under the historical cost convention.

Restatement of comparative information

To align current and prior period presentation, prior period balances have been reclassified where required to conform to current year presentation.

Going Concern

The Company’s Statement of Financial Position shows an excess of current liabilities over current assets of $3,065,900 compared to the prior year’s $4,035,619. However, included within current liabilities are accommodation payables of $16,737,475 (2018: $15,540,125) which are required to be categorised as current liabilities because there is no ability to defer their repayment beyond twelve months. In the normal course of business not all of these liabilities will crystallise within one year and those that do are usually replaced by accommodation payables paid by new incoming residents.

The Company has a substantial net asset position of $3,520,371 at 30 June 2019 compared to the prior year’s $2,744,343.

These factors lead the directors and key management personnel to the opinion that the Company can pay its debts as and when they fall due and accordingly the financial report has been prepared on a going concern basis.

Statement of Compliance

This financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board.

New and amended standards and interpretation

The Company applied AASB 9 for the first time. The nature and effect of the changes as a result of adoption of the new accounting standard are described below.

Several other amendments and interpretations apply for the first time in 2019, but do not have a significant impact on the financial statements of the Company. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaced AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

The Company has applied AASB 9 retrospectively with the initial application date of 1 July 2018. In accordance with the transitional provisions in AASB 9(7.2.15) and (7.2.26), comparative figures have not been restated.



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1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The effect of adopting AASB 9 is, as follows:

(a) Classification and measurement

Under AASB 9, debt instruments are subsequently measured at fair value through profit or loss, amortised cost, or fair value through OCI. The classification is based on two criteria: the Company’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding.

The assessment of the Company’s business model was made as of the date of initial application, 1 July 2018, and then applied retrospectively to those financial assets that were not derecognised before 1 July 2018. The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest was made based on the facts and circumstances as at the initial recognition of the assets.

(b) Impairment

The adoption of AASB 9 has fundamentally changed the Company’s methodology for determining impairment losses for financial assets by replacing AASB 139’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. AASB 9 requires the Company to recognise an allowance for ECLs for all debt instruments not held at fair value through profit or loss and contract assets.

The adoption of AASB 9 did not have a significant financial impact on the Company and therefore there was no material change in Retained Surplus as at 1 July 2018.

(c) Hedge accounting

The Company does not apply hedge accounting and this change under AASB 9 does not impact the Company.

Key Accounting Estimates and Judgements

The Company makes estimates and assumptions concerning the future. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities within the next financial year are disclosed in the relevant notes to the financial statements. Estimates and judgements are continually evaluated and are based on historical experience as adjusted for current conditions and other factor, including expectations of future events that are believed to be reasonable under the circumstances.

(b) Revenue recognition

The Company recognises revenue and other income when the amount of revenue can be reliably measured and it is probable that the future economic benefit will flow to the Company. Amounts disclosed are recognised at the fair value of the consideration received or receivable and are net of returns, trade allowances, rebates, goods and services tax (“GST”) levied and amounts collected on behalf of third parties.

Revenue and other income is recognised for the Company’s major operations using the methods outlined below.

Resident fee income is recognised when services are provided.

Government grants and subsidies income is recognised as the right to receive payment is established.

Donations (including trust estate distributions income) are recognised upon receipt.

(c) Cash and cash equivalents

Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.



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(d) Financial instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions to the instrument. For financial assets this is equivalent to the date that the company commits itself to either purchase or sell the asset. Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss” in which case transaction costs are expensed to profit or loss immediately. Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component Classification and subsequent measurement Financial assets Financial assets other than those designated and effective as hedging instruments are classified upon initial recognition into the following categories:

• amortised cost

• fair value through other comprehensive income (FVOCI)

• fair value through profit or loss (FVPL)

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance income or finance costs, except for impairment of trade receivables which are disclosed with other expenses. Measurement is on the basis of two primary criteria:

• the contractual cash flow characteristics of the financial asset

• the business model for managing the financial asset

Financial assets at amortised cost Financial assets are measured at amortised cost if the asset meets the following conditions (and are not designated as FVPL):

• the financial asset is managed solely to collect contractual cash flows

• the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates

Fair value through other comprehensive income Investments in equity instruments that are not held for trading are eligible for an irrevocable election at inception to be measured at fair value through other comprehensive income. Subsequent movements in fair value are recognised in other comprehensive income and are never reclassified to profit or loss. Dividend revenue received on underlying equity instruments investment will still be recognised in profit or loss unless the dividend clearly represents return of capital. By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are subsequently measured at fair value through profit or loss. Financial assets at fair value through profit or loss Financial assets that are held within a different business model other than to “hold and collect” or “hold to collect and sell” are categorised at fair value through profit or loss. The initial designation of financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised.



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(d) Financial instruments (continued)

Impairment of financial assets The impairment requirements as applicable under AASB 9 use more forward looking information to recognise expected credit losses. Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due, and all cash flows expected to be received, all discounted at the original effective interest rate of the financial instrument The Directors considers a broad range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument. In applying this approach, a distinction is made between:

• financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk

• financial instruments that have deteriorated significantly in credit quality since initial recognition and the credit risk is not low

• financial assets that have objective evidence of impairment at reporting date The loss allowance for the first category is measured as “12-month expected credit loss” and for the second category is measured as “lifetime expected credit losses”.

(e) Held-to-maturity investments

The Company classifies investments as held-to-maturity investments if they have fixed or determinable payments and fixed maturity and the Company has the intention and ability to hold to maturity. Investments intended to be held for an undefined period are not included in this classification.

Held-to-maturity investments are subsequently measured at amortised cost. This cost is computed as the amount initially recognised minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initially recognised amount and the maturity amount. The calculation includes all fees, transaction costs and premiums or discounts. Gains and losses are recognised in profit or loss when the investments are derecognised or impaired, as well as through the amortisation process.

Held-to-maturity investments are included in non-current assets, except those with maturities less than 12 months from the reporting date, which are classified as current assets.

(f) Trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less an allowance for impairment. They are included in current assets, except for those with maturities greater than 12 months after the reporting date which are classified as non-current assets. Trade receivables are generally due for settlement within 45 days.

Collectability and impairment are assessed on an ongoing basis and the Company’s exposure to bad debts is not significant. Debts which are known to be uncollectible are written off when identified. Impairment is recognised in the profit or loss within other expenses when there is objective evidence that the company will not be able to collect the debts. The amount of the impairment loss is the receivable carrying amount compared to the present value of the estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to the short-term receivables are not discounted if the effect of discounting is immaterial. Subsequent recoveries of amounts previously written off are credited against other expenses.

Other receivables generally arise from transactions outside the usual operating activities of the Company. Interest is not charged in respect of these outstanding balances. Collateral is not normally obtained.



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(g) Property, plant and equipment

Property, plant and equipment (including in the course of construction) is measured at historical cost less accumulated depreciation and impairment losses. Cost includes purchase price and any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Subsequent costs incurred in relation to the asset are included in cost, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Depreciation

Items of property, plant and equipment are depreciated on the straight-line method over their estimated useful lives. Land is not depreciated. The depreciation rates used for each class of assets are detailed below:

Leasehold Improvements up to 40 years (shorter of (a) the unexpired period of the lease or (b) the estimated useful life of the improvement to the Company) Plant and equipment up to 10 years Furniture and fittings up to 10 years Computer equipment up to 5 years

The estimation of useful lives, residual value and the depreciation method applied to an asset are reviewed at least annually.

Derecognition

If the carrying value of an item of property, plant and equipment is greater than its estimated recoverable amount, then its carrying value is written down immediately to its recoverable amount.

An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring no future economic benefits. Any gain or loss on derecognising an item of property, plant and equipment (difference between the proceeds of disposal and the carrying amount of property, plant and equipment) is included in profit or loss in the year of disposal.

Componentisation of buildings

Buildings are split into their various components including physical structure, fire services, mechanical services, vertical transport services, and electrical services. Estimates of useful lives for each of these components are based on advice from quantity surveyors and as a result, with the exception of the structural components, the other components have estimated useful lives less than 40 years.

(h) Intangibles

Goodwill represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired business at the date of acquisition.

Residential aged care bed licences obtained through the Aged Care Approvals Round (ACAR) represent an asset contribution under AASB 1004 Contributions. Residential aged care bed licences are recognised at the initial value until the Company either disposes of the licence or recognises impairment losses related to the licence. Fair value is determined at the date when the residential aged care beds become operational. The fair value assessment is based upon market transaction data as provided by an external consultant.

Intangibles that have an indefinite useful life are not subject to amortisation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. An intangible is considered impaired when its carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.



16


(h) Intangibles (continued)

Impairment losses are recognised in the profit or loss in the year it arose.

An intangible asset is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring no future economic benefits. Any gain or loss on derecognising an intangible asset (difference between the proceeds of and the carrying amount of property, plant and equipment) is included in profit or loss in the year of disposal.

(i) Trade and other payables

Payables are initially recognised at fair value less transaction costs and subsequently carried at amortised cost. Trade payables are unsecured and are usually paid within 30 days of recognition.

(j) Provisions

A provision is recognised when a present legal right or constructive obligation exists as a result of a past event and it is probable that a future outflow of cash or other benefit will be required to settle the obligation, the timing or amount of which is uncertain.

(k) Employment expenses

This disclosure note includes the accounting policies for all items related to employment expenses. This includes the treatment of balance sheet items such as provision for employee benefits (note 16).

Short-term employee obligations

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long services leave which are expected to be settled within 12 months of the reporting date are recognised as current liabilities. They are measured at the amount expected to be paid when the liabilities are settled.

The liability for annual leave and long service leave is recognised in the provision for employee benefits. All other short-term employee obligations are presented as payables.

Long-term employee obligations

Liabilities for long service leave and annual leave which are expected to be settled more than 12 months from the reporting date are recognised as non-current liabilities. They are measured as the present value of expected future payments to be made in respect of services provided by employees up to the balance date.

Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on High Quality Corporate Bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.

Termination benefits

The Company recognises termination benefits when it commits to either terminating a current employee’s employment according to a detailed formal plan without the possibility of withdrawal or providing termination benefits following an offer made to encourage voluntary redundancy.

Superannuation

The Company contributes to several defined contribution superannuation plans. Contributions are recognised as an employment expense as they are incurred.



17


(l) Accommodation payables

Refundable accommodation deposits and accommodation bonds under the Aged Care Act 1997

Refundable accommodation deposits and accommodation bonds have been paid by certain classes of non-concessional/supported residential aged care residents under the Aged Care Act 1997, upon entry into aged care facilities operated by the Company.

The carrying value of the refundable accommodation deposits and accommodation bond is the amount of the bond received less any deductions. Deductions may include interest on unpaid amounts, extra service fees drawn from the bond, retention amounts and capitalised care fees. The statutory timeframe for repaying refundable accommodation deposits and accommodation bond balances is detailed in section 57-21 of the Aged Care Act and generally allows for refund of bonds within 14 days of departure or in the event of death.

Interest is payable to residents on refundable accommodation deposits and accommodation bond balances from the date of death or departure to the date of repayment. Interest is chargeable to residents on accommodation bonds and fees which are received after their due date.

(m) Goods and services tax

Revenues, expenses, assets and liabilities are recognised net of the amount of goods and services tax (GST) except when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority (in which case the GST is recognised as part of the cost of the acquisition of the asset or as part of the expense).

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement including GST in the operating cash flows. Commitments and contingencies are disclosed net of GST recoverable from, or payable to, the taxation authority.

(n) Income Tax

The Company is exempt from income tax under the provisions of Section 50-30 of the Income Tax Assessment Act 1997.

2019 $

2018 $

2. REVENUE

Resident fees 1,906,971 1,831,249

Government grants and subsidies 5,564,306 5,136,576

Rents and other property revenue 1,717 1,581

Finance Revenue 320,260 305,337

Accommodation bond/entry contribution retentions 2,979 12,578

Other revenue 114,366 107,632

Total revenue 7,910,599 7,394,953

3. OTHER INCOME

Donations 300,300 9,882

Fair value gain on financial assets 110,255 10,241

Net gain on disposal of property, plant and equipment - (617)

Total other income 410,555 19,506



18

2019 $

2018 $

4. EXPENSES

Surplus includes the following specific expenses:

Finance costs

Interest and finance charges paid/payable 61,555 67,538

Total finance costs expensed 61,555 67,538

Depreciation

Plant and equipment 202,986 186,453

Leasehold improvements 321,585 284,778

Total depreciation 524,571 471,231

Amortisation

Software 4,000 2,333

Total amortisation 4,000 2,333

Total depreciation and amortisation 528,571 473,564

Defined contribution superannuation expense 363,600 353,279 5. CURRENT ASSETS – CASH AND CASH EQUIVALENTS

Cash at bank and on hand 12,322,013 11,204,003

The Company’s exposure to interest rate risk is discussed in note 15. The Company holds cash in current accounts and term deposits with the balance disclosed being unrestricted.

6. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES

Trade receivables 47,307 7,206

47,307 7,206 Interest receivable 27,067 29,850 Other receivables (b) 48,652 43,721

75,719 73,571 Prepayments 24,067 19,503

147,093 100,280



19

2019 $

2018 $

6. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES (continued)

(a) Impaired trade receivables At 30 June 2019, the Company had no impaired current trade receivables (2018: $Nil). The ageing of these receivables was as follows: Past due but not impaired 1 to 3 months 8,392 1,491

3 to 6 months 4,242 -

6 months or more - -

12,634 1,491

The other classes within trade and other receivables do not contain impaired assets and are not past due. Based on the credit history of these other classes, it is expected that these amounts will be received when due.

(b) Other receivables These amounts generally arise from transactions outside the usual operating activities of the Company. Interest is not charged in respect of these outstanding balances. Collateral is not normally obtained. Included in other receivables are amounts due from the following classes of related parties: Commonly controlled entities 13,728 12,026

Financial risk management Due to the short term nature of these receivables, their carrying amount is assumed to approximate their fair value. The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivables mentioned above. Refer to note 15 for more information on the risk management policy of the Company and the credit quality of the entity’s trade and other receivables. 7. INVESTMENTS

Current

Fair value through profit or loss financial assets 2,669,124 1,313,739

2,669,124 1,313,739

8. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT

Leasehold improvements

Plant and equipment

In course of construction Total

$ $ $ $

Year ended 30 June 2019

Opening net book value 4,465,763 633,963 946,738 6,046,464 Additions - 306,342 31,651 337,993 Transfer between asset classes 929,266 11,905 (941,171) - Depreciation (note 4) (321,585) (202,986) - (524,571)

Closing net book value 5,073,444 749,224 37,218 5,859,886



20

8. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT (continued)

Leasehold improvements

Plant and equipment

In course of construction Total

$ $ $ $

At 30 June 2019 Cost 6,708,481 1,586,323 37,218 8,332,022 Accumulated depreciation (1,635,037) (837,099) - (2,472,136)

Net book amount 5,073,444 749,224 37,218 5,859,886

Year ended 30 June 2018 Opening net book value 4,750,541 547,551 112,247 5,410,339 Additions - 161,235 946,738 1,107,973 Disposals - (617) - (617) Transfer between asset classes - 112,247 (112,247) - Depreciation (note 4) (284,778) (186,453) - (471,231)

Closing net book value 4,465,763 633,963 946,738 6,046,464

At 30 June 2018 Cost 5,779,215 1,268,076 946,738 7,994,029 Accumulated depreciation (1,313,452) (634,113) - (1,947,565)

Net book amount 4,465,763 633,963 946,738 6,046,464

9. NON-CURRENT ASSETS – INTANGIBLE ASSETS

Residential aged care bed

licences Goodwill Software Total

$ $ $ $ Year ended 30 June 2019 Opening net book value 450,000 332,087 9,667 791,754 Additions - - - - Amortisation (note 4) - - (4,000) (4,000)

Closing net book value 450,000 332,087 5,667 787,754

At 30 June 2019 Cost 450,000 332,087 12,000 794,087 Accumulated amortisation and impairment - - (6,333) (6,333)

Net book amount 450,000 332,087 5,667 787,754 Year ended 30 June 2018 Opening net book value 450,000 332,087 - 782,087 Additions - - 12,000 12,000 Amortisation (note 4) - - (2,333) (2,333)

Closing net book value 450,000 332,087 9,667 791,754

At 30 June 2018 Cost 450,000 332,087 12,000 794,087 Accumulated amortisation and impairment - - (2,333) (2,333)

Net book amount 450,000 332,087 9,667 791,754



21

9. NON-CURRENT ASSETS – INTANGIBLE ASSETS (Continued) Residential aged care bed licences Commonwealth government funded bed licences obtained through the approvals round process represent an asset contribution under AASB 1004 Contributions. The Company records as income the fair value of the bed licences obtained when the actual residential aged care beds become operational. The fair value assessment is based upon market transaction data as provided by an external consultant.

The recoverable amount at 30 June 2019 for residential aged care bed licences are their fair value less costs to sell which have been determined by management.

The fair value of the Company’s residential aged care bed licences has been assessed by management at $4,380,000 at 30 June 2019 based upon a market valuation information obtained by management. As a result, no impairment exists at 30 June 2019 (2018: nil).

Commonwealth Government funded residential aged care bed licences have been assessed to have indefinite useful lives on the basis of the current regulatory supply restrictions applied by the Commonwealth Government. On 8 August 2011 the Productivity Commission released a report titled “Caring for Older Australians” which included a recommendation for the removal of the current regulatory supply restrictions on the number of residential aged care bed licences. On 20 April 2012 the Commonwealth Government released its response to the Productivity Commission report through its “Living Longer Living Better” reform package which rejected the immediate removal of the current regulatory supply restrictions and alternatively provided for a substantial review in 2018. Accordingly, it remains the Directors’ opinion that the residential aged care bed licences remain classified as intangible assets with indefinite useful lives at this time.

If the substantial review proposed by the Commonwealth Government removes the current regulatory supply restrictions, it is anticipated that pursuant to AASB 136 Impairment of Assets that the recoverable amount of the residential aged care bed licences will be reduced to $nil.

2019 $

2018 $

10. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES

Trade creditors 745,247 529,763

Financial risk management Due to the short-term nature of these payables, their carrying amount is assumed to approximate their fair value. Refer to note 15 for more information on the risk management policy of the Company and the liquidity risk of the entity’s trade and other payables.

11. CURRENT LIABILITIES – ACCOMMODATION PAYABLES

Refundable accommodation deposits under the Aged Care Act 1997 13,328,503 10,813,558 Accommodation bonds under the Aged Care Act 1997 3,408,972 4,726,567

16,737,475 15,540,125

Accommodation payables are recognised as a current liability as the Company is unable to defer repayment of the balance due to discharged residents as prescribed within the Aged Care Act 1997. However, based on past history, the Company expects accommodation payables to be settled as follows: Expected to be settled within the next 12 months 5,668,972 5,826,567 Expected to be settled greater than 12 months 11,068,503 9,713,558

16,737,475 15,540,125



22

2019 $

2018 $

Movement in accommodation payables Carrying amount at the beginning of the financial year 15,540,125 15,078,843 Proceeds from residents 4,729,039 4,298,000 Repayment to former residents (3,547,275) (3,856,257) Interest payable to former residents 61,309 67,290 Interest and fees charged to residents (45,723) (47,751)

Carrying amount at the end of the financial year 16,737,475 15,540,125

Financial risk management Refer to note 15 for more information on the risk management policy of the Company and the liquidity risk of the entity’s accommodation payables.

12. CURRENT LIABILITIES – PROVISIONS

Employee benefits (note 16) 721,408 583,753

13. NON-CURRENT LIABILITIES – PROVISIONS

Employee benefits (note 16) 61,369 58,256

14. RETAINED SURPLUS

Opening balance at the beginning of the financial year 2,744,342 2,341,747

Surplus for the year 776,029 402,596

Closing balance at the end of the financial year 3,520,371 2,744,343

15. FINANCIAL RISK MANAGEMENT

The Company holds the following financial instruments:

Financial Assets

Cash and cash equivalents 12,322,013 11,204,003

Trade and other receivables (current) 2,669,124 1,313,739

Held to maturity investments 147,093 100,280

Total financial assets 15,138,230 12,618,022

Financial Liabilities

Trade and other payables (current) 745,247 529,763

Accommodation payables (current) 16,737,475 15,540,125

Total financial liabilities 17,482,722 16,069,888



23

2019 $

2018 $

15. FINANCIAL RISK MANAGEMENT (Continued)

Market Risk (i) Price risk The Company has no exposure to price risk. (ii) Interest rate risk The Company’s main interest rate risk arises from cash and bank deposits earning variable rates. These expose the Company to the risk that the fair value or cash flows of financial instruments will fluctuate due to changes in market interest rates. The variable risk on financial assets is managed by an investment policy that restricts the type and term of investments. The Company also retains independent advisors to recommend and place investments in accordance with this policy. The term of the investments is determined after consideration of the liquidity needs of the Company As at reporting date, the Company had the following mix of financial assets exposed to variable interest rate risk that are not designated in cash flow hedges: Financial assets

Cash and cash equivalents 12,320,813 11,202,803

12,320,813 11,202,803

During the financial year and at reporting date, if interest rates had increased by 1% (100 basis points) then, with all other variables held constant, the operating surplus for the financial year, and equity at the reporting date, would have been $117,618 (2018: $116,933) higher if rates had moved up and the reverse if rates had moved down.

Credit Risk Cash deposits are currently limited to major trading banks and financial institutions including the Archdiocesan Development Fund (“ADF”). The Company has an investment policy that seeks to limit the amount of credit risk exposure to any one of the approved financial institutions based on their credit rating. Investments held with major Australian trading banks and other Australian owned banks and corporations have a Standard & Poor’s long term rating of “A” or better and/or a short term rating of A-2 or better. The ADF is not rated but cash at bank and term deposits held with them are generally considered to be a low credit risk. Credit risk in respect of trade and other receivables is generally considered to be low given that the majority of receivables relate to funds owed by State and Commonwealth government departments. Receivable balances are monitored on an on-going basis with the result that the Company’s exposure to bad debts is not significant. As outlined above, the Company trades and deals only with recognised and creditworthy parties and, as such, collateral is not requested nor is it the Company’s policy to securitise its trade and other receivables.



24

2019

$ 2018

$ 15. FINANCIAL RISK MANAGEMENT (Continued)

Liquidity Risk The Company manages liquidity risk by continuously monitoring forecast and actual cash flow and matching the maturity profiles of financial assets and liabilities. The Company maintains cash equivalents and short term investments with appropriately rated financial institutions and the maturity of these investments is such that funds mature as needed. At reporting date, the following financing facilities had been negotiated and were available:

Overdraft facility

Total facility 5,000,000 5,000,000

Used at balance date - -

Unused at balance date 5,000,000 5,000,000

The bank overdraft facilities are unsecured and may be drawn at any time from the Archdiocesan Development Fund. The current interest rate is 4.60% on the overdraft facilities. The facility is approved for a period of two and a half years until July 2020 and is reviewable upon cessation of the management and administrative services provided by St Vincent’s Care Services Ltd. The facility is renewable at the option of the Company. Maturity of financial liabilities As at reporting date, the Company’s remaining contractual maturities of its financial liabilities were as follows:

Trade and other payables

Within one year 745,247 529,763

Later than one year but not later than five years - -

Later than five years - -

No fixed repayment date 16,737,475 15,540,125

17,482,722 16,069,888

Trade and other payables with no fixed repayment dates primarily represent Accommodation Payables. As at reporting date, the following financial liabilities of the Company had no fixed contractual maturity dates:

Accommodation payables 16,737,475 15,540,125

16. EMPLOYEE BENEFITS

Employee benefits and related on-cost liabilities

Provision for employee benefits – current (note 12) 721,408 583,753

Provision for employee benefits – non-current (note 13) 61,369 58,256

Aggregate employee benefit and related on-costs liabilities 782,777 642,009

17. REMUNERATION OF AUDITORS

Assurance services

StewartBrown

Audit Services 18,200 16,900

Total remuneration for assurance services 18,200 16,900



25

2019

$ 2018

$

18. RELATED PARTIES

Members The five members of the Company are members of the Congregation of the Sisters of Mercy, Parramatta.

Transactions with commonly controlled entities Transactions between the Company and commonly controlled entities during the year ended 30 June 2019 consisted of: (a) Payment to the company of wages reimbursement; (b) Payment by the Company of lease charges in respect of the occupation of the property at 6 Coast Ave Cronulla; (c) Repayment by the Company of amounts due to related parties. The above transactions were made on normal commercial terms and conditions and at market rates. Aggregate amounts included in the determination of surplus from ordinary activities that resulted from transactions with each class of other related parties:

Wages reimbursement revenue from:

Commonly controlled entities 104,281 81,996

Lease charges paid to:

Commonly controlled entities 243,000 236,000 19. KEY MANAGEMENT PERSONNEL DISCLOSURES

Directors The names of persons who were directors of the Company at any time during the financial year are set out below.

Mr William Joseph Walker (Chair – appointed 6 July 2011)

Ms Roslyn Conor Driscoll (appointed 6 July 2011)

Dr Jane Elizabeth Givney (appointed 6 July 2011)

Sr Catherine Harris, RSM (appointed 6 July 2011)

Mr Peter Robert Poppett (appointed 3 July 2012)

Ms Catherine Sammut (appointed 12 September 2012 – resigned 11 December 2018)

Mrs Katherine Roughan (appointed 21 October 2014)

Mrs Jody Bovell (appointed 21 October 2014 – resigned 9 October 2018)

Mr Peter Mackinnon (appointed 1 December 2016)

Mrs Loretta El-Khalil (appointed 14 February 2017)

Mrs Moira Parker (appointed 14 February 2017)

Mr John Williams (appointed 21 October 2018)

Judge Christopher O’Brien (appointed 11 June 2019)

Ms Alexandra Zammit (appointed 13 August 2019)



26

19. KEY MANAGEMENT PERSONNEL DISCLOSURES (Continued)

Executives Other than directors, Key Management Personnel include those having the authority and responsibility for planning, directing and controlling the Company’s activities directly or indirectly. The names and position of key management personnel (other than directors) are: Mr Robert O’Shea Chief Executive Officer – R J O’Shea Management Pty Ltd Mr Patrick O’Sullivan SVCS – Chief Financial Officer Ms Elzette Lategan SVCS – Acting General Manager New South Wales Ms Sarla Singh SMACF - Facility Manager Mr O’Shea is employed by R J O’Shea Management Pty Ltd which is contracted to provide executive services to the company. Mr O’Sullivan, Ms Lategan and Ms Singh are employed by St Vincent’s Care Services Ltd which is contracted to provide management and administrative services to the company. Compensation No compensation was paid to the directors. The compensation paid to specified executives noted above is as follows:

Compensation Category 2019

$ 2018

$

Short-term employee benefits 126,474 119,973

Post-employment benefits 11,601 11,397

Termination benefits - -

Total 138,075 131,370

There are no other long term benefits as at year end (2018: nil).

20. ECONOMIC DEPENDENCY

Various controlled entities involved in the provision of public health and aged care services source a significant volume of their revenue from a number of Government entities including:

• Commonwealth Department of Health

• Commonwealth Department of Veterans’ Affairs The revenues from these Government entities are expected to continue in the foreseeable future.



27

2019

$ 2018

$

21. RECONCILIATION OF SURPLUS FOR THE YEAR TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Surplus for the year 776,029 402,596

Depreciation and amortisation 528,571 473,564

Net loss/(gain) on disposal of non-current assets - 617

Non-cash accommodation bond retention/in-going contribution exit fee income (2,979) (12,578)

Non-cash accommodation bond/in-going contribution interest income (4,222) (3,535)

Non-cash accommodation bond/in-going contribution interest expense 61,309 67,290

Non-cash fair value gain on contribution of assets (38,522) (31,637)

Non-cash donation revenue - (9,882)

Non-cash finance revenue (155,385) (13,739)

(Increase)/decrease in trade debtors and other receivables (40,101) (15,206)

(Increase)/decrease in other debtors and prepayments (6,711) (4,147)

Increase/(decrease) in trade creditors and other liabilities 283,587 122,712

Increase/(decrease) in provisions 140,768 9,398

Net cash inflow from operating activities 1,542,344 985,453

22. SUBSEQUENT EVENTS

The Directors are not aware of any matter or circumstance occurring since 30 June 2019 that has significantly or may significantly affect the operations of the Company.

23. 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 $100 each towards meeting any outstanding obligations of the Company.

2019 2018

Number Number

Number of members 5 5

24. CORPORATE INFORMATION

The financial report of Stella Maris Aged Care Facility for the year ended 30 June 2019 was authorised for issue in accordance with a resolution of the directors on 8 October 2019. The directors have the power to amend and reissue the financial report. Stella Maris Aged Care Facility is a not-for-profit company limited by guarantee, incorporated under the Corporation Act 2001 and domiciled in Australia. Its registered office and principal place of business is:

Registered Office Principal Place of Business 6 Victoria Road 6 Coast Avenue Parramatta, NSW 2150 Cronulla, NSW 2230

The nature of the operations and principal activities of the Company are described in the Directors’ Report.



28

25. OTHER INFORMATION

During the prior year, further additional issues were noted in relation to previously completed refurbished bathrooms which will require rectification. At the date of this report the number of bathrooms effected and the scope of works required to rectify the issues are to be determined. It is the Director’s opinion based upon the information available that the Project Manager and/or Head Contractor will be responsible for the rectification costs.


Directors’ Declaration 30 June 2019

29

In the directors’ opinion: (a) the financial statements and notes set out on pages 7 to 28 of the Company are in accordance with the Corporations Act 2001 and the Australian Charities and Not-for-profits Commission Act 2012 (Cth), including:

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

(ii) giving a true and fair view of the Company’s financial position as at 30 June 2019 and of its performance for the financial year ended on that date; and

(b) there are reasonable grounds to believe that the Company 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 directors.

___________________________ Mr William Joseph Walker, Chair Sydney 8 October 2019

StewartBrown Letterhead

30

STELLA MARIS AGED CARE FACILITY ABN 45 147 153 035

FINANCIAL REPORT - 30 JUNE 2019 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STELLA MARIS AGED CARE FACILITY Opinion We have audited the financial report of Stella Maris Aged Care Facility which comprises the statement of financial position as at 30 June 2019, the statement of profit or loss and other comprehensive income, the statement of changes in funds 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. In our opinion, the accompanying financial report of Stella Maris Aged Care Facility is in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including: giving a true and fair view of the Company’s financial position as at 30 June 2019 and of its financial performance for the year then ended, and complying with Australian Accounting Standards and the Australian Charities and Not-for-profits Commission Regulation 2013. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibility for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Australian Charities and Not-for-profits Commission Act 2012 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Australian Charities and Not-for-profits Commission Act 2012, which has been given to the Directors of the Company, would be in the same terms if given to the Directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Directors’ 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 Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the Directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. The Directors are responsible for overseeing the Company’s financial reporting process.

StewartBrown Letterhead

31

STELLA MARIS AGED CARE FACILITY ABN 45 147 153 035 FINANCIAL REPORT - 30 JUNE 2019 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STELLA MARIS AGED CARE FACILITY Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at The Auditing and Assurance Standards Board and the website address is http://www.auasb.gov.au/Home.aspx We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. StewartBrown Chartered Accountants S.J. Hutcheon Partner 9 October 2019

http://www.auasb.gov.au/Home.aspx

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