$2,897,042, up 520% on financial year ending. 2012 results. The significant
factors .... I am happy to present my annual report for the year ending 30 June
2013.
Clayton Church Homes Inc. ABN 70 138 284 252 PO Box 3067 NORWOOD SA 5067
Administration 156 Main North Road PROSPECT SA 5082
Residential Facilities
Clayton Residential Aged Care Service 156 Main North Road PROSPECT SA 5082
Clayton Church Homes - Magill 43 Fisher Street MAGILL SA 5072
Clayton Church Homes - Park Village 30 Shillabeer Road ELIZABETH PARK SA 5113
Page 1
Clayton Church Homes Inc.
Retirement Living
Magill 30x units located on Bricknell Street, Harrow Avenue and Fisher Street at Magill
Queen Street 6x units at 24-26 Queen Street, Norwood
Beulah Terraces 33x apartments located at 144-148 Beulah Road, Norwood
Page 2
Contents Board Directors and Committee membership
4
Senior Management
4
The Chairman’s Report
5-6
Chief Executive Officer Report
7-8
Manager Residential Facilities Report
9
Manager Finance Report
10-11
Manager Human Resources Report
12
Manager Property Report
13
Manager Quality Assurance Report
14-15
FINANCIAL REPORT TO 30 JUNE 2013
16-37
Board of Directors Report
17
Statement by the Board of Directors
18
Statement of Comprehensive Income
19
Balance Sheet
20
Statement of Changes in Equity
21
Statement of Cash Flows
22
Notes to the Financial Statements
23
Independent Audit Report
37
INDEPENDENT LIVING UNIT FINANCIALS
38-41
Norwood ILU’s
39
Magill ILU’s
40
Beulah Terraces ILU’s
41
Page Page33
Board Directors & Committee Membership
Mr. Brian Hern Chairperson Finance Committee Member
Mrs. Jenny Stewart Board Director
Mr. Brian Piller Deputy Chairperson Finance Committee Member
Rev. Don Catford Board Director
Ms. Marg Sammut
Mr. Akos Nagy
Board Director
Board Director
Mr. Des Borgelt
Ms. Kaye Armstrong
Board Director Retired (AGM October 2012)
Board Director Retired (AGM October 2012)
Senior Management Mr Andrew Case
Chief Executive Officer
Mrs Alison Case
Manager Residential Facilities
Mr Mike Newman
Manager Human Resources
Mr Stephen Collins
Manager Property
Mrs Nancy Dilena Mrs Mandy Haywood
Manager Finance Senior Finance Officer
Mr Mayur Bedi
Manager Quality Assurance Page 4
Chairman Report The year in review 2012/2013 has been yet another year of challenge and growth for Clayton Church Homes. At all times we are aware of changes in the expectation of our Residents, Staff and Government. The Residents, the most important reason we exist, are by far the most appreciative of the three. The ethos surrounding Aged Care in Australia is every interchanging which adds to the challenge but with it brings satisfaction when all the stake holders have an appropriate level of satisfaction.
Andrew continues to manage the overbearing regulatory requirements and balance with reasonable outcomes for Residents and Staff. It is becoming more difficult to provide a ‘home like’ environment while working within the bound for accreditation.
Continuous Development The year on which I am reporting today, has been one of consolidation and maintenance. There have been no major projects undertaken this year and currently none in active planning stage. We need to assess the ever changing needs in accommodation and care for ageing Australians and act accordingly.
Accreditation As the Chief Executive Officer has mentioned in his report, the legislative requirements governing the conduct of Residential Facilities is stringent and Clayton Church Homes has met the challenge and most recently has been commended for its positive approach and continuous improvement. Dealing with bureaucracy is always “tricky” as individual auditors bring their own interpretation of the Aged Care Act. How fortunate Clayton Church Homes are to have a Chief Executive Officer who through knowledge and experience can quote chapter and verse of the Act and bring the audit process back to reality.
The Percival Street properties are still awaiting appropriate long term use. Discussions were held with a care provider for younger disabled people but the discussions came to a halt when your Board felt the expectations of the provider was an unfair strain on the resources of Clayton Church Homes. Management I can only reiterate the support and confidence the Board has in your Chief Executive Officer, Mr Andrew Case.
Board of Directors meetings are normally held at Prospect but during the year the Board have travelled to all sites. It gives the Directors the opportunity to meet with Residents and Staff and to inspect the property.
During the year several “spot visits” have been conducted by the Aged Care Standards and Accreditation Agency and the Directors were satisfied by the outcomes that best practice is a daily event and not ‘just a show for a scheduled inspection.’ During the past year, our Prospect and Park Village sites have experienced the major accreditation visit and your Board is proud to report that Clayton Church Homes passed on all 44 outcomes on both sites and as such has been accredited an approved provider for the next three (3) years. The Directors thank Management and Staff who ensure that this result is achieved and maintained.
Page5 5 Page
Chairman Report Directors The Board of Directors stand by and consider every decision based on the Vision Statement of Clayton Church Homes:
I value the support and encouragement each Director gives to both Clayton Church Homes and me. I assure you all that we will continue to work to ensure the best standard of care and conditions will be available to all residents of Clayton Church Homes Incorporated.
“Quality care through mutual respect in a loving environment” The Directors, without exception, attend meetings diligently and contribute their expertise to the issues at hand. They each bring particular skills and are prepared to utilise their expertise for the benefit of Clayton Church Homes.
Brian Hern Chairman
In February, the Board of Directors met with Senior Management group for a Strategic Planning day. This was most worth while as it gave Directors an indication of the expectations and needs of those who are delivering the services to residents. The future and the strategy to achieve future outcomes for Clayton Church Homes is ever before us. We are frequently presented with opportunities and challenges to expand the services of Clayton Church Homes. The Board is considering the best way to expand service to the community of Elizabeth and Salisbury and will be considering all the aspects.
Page 6
Chief Executive Officer Report Within Clayton Church Homes we continue to focus on the provision of services and support to all residents, families and staff.
2012-13 financial year has in many ways been a busy year of proposed change within the Aged Care sector. It has also been a busy year within Clayton Church Homes. Within the sector, we had several significant legislative changes: a) Living Longer Living Better: a Federal initiative to introduce the direction for Aged Care over the next ten (10) years. Changes to be introduced include: - A greater concentration on home care services; - Changes to how providers charge for services provided and what can be charged; - Greater openness through the My Aged Care website for the general public to understand who, how and where services are provided; - Workforce initiatives designed to provide a better paid and higher skilled workplace. b) Australian Charities and Not-For-Profit Commission (ACNC): designed to reduce red tape by reducing within this area the regulatory burden on the not-for-profit sector. The initial impact has seen a need for us to review our constitution to ensure we meet the requirements of the ACNC. This is why we are proposing to change our constitution today.
Several major initiatives were introduced in 2012-13 that have assisted Clayton Church Homes in consolidating its presence within the Aged Care sector; a) Alliance Catering: commenced providing services to our residents at all residential sites. This has been a positive initiative with specialist caterers preparing and serving meals from within our kitchens. As with all new services, there were certainly some initial teething problems, but I do believe the spirit in which both Clayton Church Homes and Alliance Catering work together assisted in overcoming these issues. b) Mirus Aged Care Management Service: introduced in September 2012, Mirus has assisted us in maximising our income via Commonwealth subsidies. Training of staff in monitoring and documentation has seen an increase in income of $1.2 million for the 2012-13 financial year. Ongoing support, advice and access to computer technology ensures we are reviewing our practises and services daily and, as a result, providing the care required. c) Board Strategic Plan: 2 February 2013 saw the Board and senior staff hold a strategic planning day. Planning days assist both the Board and staff to understand and set the direction that Clayton Church Homes should follow.
Page 7
Chief Executive Officer Report Issues discussed during the day included: a) Review of our Constitution: this has occurred as detailed earlier in my report. b) Staff restructure: as a result of increased income, a review of our staffing mix occurred and several new initiatives will be introduced in the 2013-14 financial year. The main initiative will be an increase in trained staff (RN/ EN) at all sites. c) Opportunities: continue to grow our retirement living/ independent living portfolio when opportunities arise. d) Chaplain: investigate the opportunity to provide ongoing chaplaincy service across all sites. These items, plus others, are being developed to enhance services to all residents. Retirement Living sector: This section of our service is influenced greatly by the housing and economic conditions. Our Magill and Norwood sites retain high occupancy as existing established villages. A single bedroom unit at Norwood received a major refurbishment during the year and reasonably quickly became occupied.
Beulah Terraces continues to prove difficult to fill due to the ongoing housing market. With low interest rates we look forward to ongoing licences and full occupancy. I am pleased to say the current occupancy rates have covered our construction costs. All villages meet on a regular basis with management throughout the year. Finance: After experiencing a number of years of deficits, 2008-2011, I am very pleased to report, for the second year in a row, a surplus. As discussed earlier in this report, several initiatives plus the increase in retirement/ independent living residents we registered a surplus of $2,897,191. All areas within Clayton Church Homes contributed towards this very pleasing result. Board and Staff: Without the support of the Chairman and Board of Directors and their collective desire to develop Clayton Church Homes by recognising at all times our residents in their decision making, what has and is occurring would not be possible. Their wisdom and foresight continues to see Clayton Church Homes grow. In saying this, I commend to you the managers reports contained within the Annual Report 2012-13. Finally, it would be remiss of me not to thank Mrs. Juvena Anderson for the support and assistance she has given me throughout the year.
Andrew J Case Chief Executive Officer
Page Page88
Manager Residential Facilities Report I would like to thank the Site Coordinators for their dedication and hard work over the last twelve (12) months. As a result of a Strategic Planning day held earlier this year, we are reviewing our staffing structures at our sites. Magill will be introducing a Registered Nurse to work Saturday and Sunday for better clinical cover. The hotel service staff that assist in the dining room at breakfast time will no longer be required as two (2) additional care staff members will be rostered to cover this. The hotel service staff will do cleaning only. These hours will be increased on weekends so we will have two (2) full time cleaners seven (7) days per week. Park Village will have an Enrolled nurse rostered on seven (7) days per week to assist the Registered Nurse. Prospect will have an increase of Enrolled Nurses. There will be two (2) Enrolled Nurses on morning and afternoon shifts to enable the Registered Nurses more time for documentation to ensure resident care is optimised and funding levels are accurate. A review of duty statements is currently being looked at and new rosters are being developed ready for this implementation.
We have continued to have announced and unannounced visits from the Aged Care Standards and Accreditation Agency at all three (3) sites. Positive results have been achieved to date. We have continued to source Mirus Australia for guidance and assistance with our ACFI submissions at all sites. This has proven to be very beneficial. Well done to all sites on achieving great results. The sites have also started to claim the new supplement that the Department of Health and Ageing has introduced: Dementia and Severe Behaviours Supplement. Residents are required to undergo an assessment process to see if they are eligible before we can claim this as not all residents will be eligible. We will soon start to work on our Accreditation submission for Magill which will be due in December. The Accreditation Site Audit will be due in March 2014. We continue to review our procedures and relevant forms to ensure legislative requirements are met and the standard of care delivered remains at a high level. Again, I would like to thank the Board, Chief Executive Officer, Management team and staff for their support throughout the past year.
Alison Case Manager Residential Facilities
Page 9
Manager Finance Report Contract Laundry, Cleaning & Catering has increased by $1,626,320. Outsourcing of cleaning at Park Village residential facility occurred in December 2011. All catering has been outsourced to Alliance Catering at all residential facilities. This change has resulted in Food Supply expenses being diminished.
I am pleased once again to report that Clayton Church Homes’ financial result for the year ending 30 June 2013 is a surplus of $2,897,042, up 520% on financial year ending 2012 results. The significant factors contributing to the surplus are as follows:
Increase in Legal and Consulting fees during 2013 of $286,490 primarily resulting from ACFI maximisation using the services of Mirus Australia.
Clayton Church Homes contracted the services of Mirus Australia to train employees to review claims for subsidies and increase resident categories. Significant gains have been achieved with subsidies increasing by $1,280,136 from 2012 financial year.
Speciality Health Professional expenses have increased by $83,300 in direct correlation with the increases in government subsidies.
Occupation of Beulah Terrace Units started from 11 November 2011 and by the 30 June 2013, 22 units have been sold contributing to approximately $820,380 in Management fees. The share market regained very well and resulted in the share portfolio increase by $696,149. The property value of the Independent Living Units for a second year running has dropped resulting in the Licence fee refund amount falling by $430,840 Staff wage costs across all 3 Residential sites was $579,044 better than budget due to staffing levels not being at full capacity.
Interest charges on Loan & Accommodation Bonds has significantly decreased from $1,158,113 in 2012 to $570,060 in 2013 due to reductions in borrowings of $7,750,000 which has reduced the interest being charged. Clayton Residential Aged Care Service – Prospect This year the Prospect site recorded a deficit of $284,505 compared to a budgeted deficit of $382,471. Commonwealth government subsidies were $201,359 ahead of budget as a result of Mirus Australia providing training to employees to optimise government subsidy claiming activity. Major roofing repairs were carried out at the site costing $55,500. Consulting fees year to date totalled $217,321 for services provided by Mirus Australia. Clayton Church Homes Hostel – Magill For the financial year ending 2013, Magill site recorded a surplus of $491,790 compared to a budgeted surplus of $91,447. Commonwealth subsidies are steadily increasing as a result of Mirus training. Subsidies were $447,067 better than budget as well as wage costs $153,529 being better than budget. Consulting fees year to date totalled $221,569 for services provided by Mirus Australia.
Page 10 10 Page
Manager Finance Report Clayton Church Homes Park Village Elizabeth Park Park Village site recorded a surplus of $549,725 compared to a budgeted deficit of $6,247. ACFI maximisation of Commonwealth government subsidies has been well achieved at the site. Consulting fees were higher than budget ($143,396) due to ACFI maximisation costs provided by Mirus Australia. Magill Independent Living Units This year the Magill ILUs recorded a surplus of $853,808 against a budgeted surplus of $267,542. This figure is comprised of the following significant income and expense items:
Income of $617,700 being the yearly unit retention amount (6% of the purchase price of each unit – for the first five years). Negative Expense of ($427,800) representing the decrease in liability incurred by CCH on the yearly revaluation of the units. The property market value of the units has decreased for another year.
Beulah Terraces Independent Living Units To the end of June 2013, 22 out of 33 units were occupied and fully paid for. This has resulted in a surplus of $531,845 being recorded. Significant income of $820,380 was generated from the yearly unit retention amount (6% of the purchase price of each unit – for the first five years). The liability incurred by CCH on the yearly revaluations of the units increased by $1,160 in the past 12 months. Administration Administration recorded a surplus of $694,314 compared to a budget deficit of $85,977. Factors attributing to the surplus are as follows:
Norwood Independent Living Units Norwood ILU’s recorded a surplus of $60,063 against a budgeted surplus of $1,681. This figure is comprised of the following significant income and expense items:
Negative Expense of ($4,200) representing a decrease in liability incurred by CCH on the yearly revaluations of the units. As with the Magill Independent Living Units, the value of the units has decreased over the last twelve (12) months.
Income of $68,700 being the yearly unit retention amount (6% of the purchase price of each unit – for the first five years.)
The share market continues to recover resulting in the value of shares increasing by $761,962.
Interest charged on the loan continues to decrease as repayments are made on the loan. The interest charged in 2013 was $521,188 compared to the previous years’ interest charge of $1,134,118.
Beulah Terraces consulting, advertising and other expenses totalled $207,497. These costs are decreasing slowly as units are being sold.
Nancy Dilena Manager Finance
Page11 11 Page
Manager Human Resources Report Recruitment Process The introduction last year of a new employee employment pack has proven to be very successful with all the required documentation being completed at one location (Prospect). All new employees are given an overview of their requirements outlined in their letters of appointment. This includes our Code Of Conduct, Zero Tolerance booklet, Position Description and our Employee Handbook. Also included in the package is information on Salary Packaging, CCH outsourced employee assistance program, corporate health fund membership booklet and the orientation program that new employees work through for the first three (3) days at their location of employment. Workplace Health & Safety (WH&S) After a period of inactivity the reinstatement of the WH&S committee has been revitalised. Four (4) meetings have been held this year with new committee members. The committee meets bi-monthly to review workplace safety matters and any significant changes in legislation Outsourcing Catering The first twelve (12) months of Alliance Catering as the provider for all resident meals at all three (3) facilities is proving to be very successful with positive feedback from residents and family members. Any negative issues are quickly resolved by negotiation between both management teams.
Training Training for staff and management remains a priority to meet and increase their skill levels. Care Workers and nursing staff will benefit from additional training in areas of dementia, drug and alcohol associated problems, mental health and general complex conditions. There is a comprehensive training program that requires staff to attend mandatory training according to their roles. These include Manual Handling, Chemical Training, Zero Tolerance, Emergency Response and Medication Management. Information Technology There have been no significant issues and concerns experienced by staff members with our computer system. Any problems are usually rectified quickly to the satisfaction of the person experiencing the problem. One area that remains to have some difficulty in maintaining consistency is the online banking. Solutions are being investigated but would require significant changes to the system. The Broadband Kiosks at the Magill and Park Village facilities are continuing to be utilised. In applying to continue to host this service an opportunity to apply for a new computer with touchscreen monitor and/or a $2,000 training grant was offered. An application has been submitted and if successful will give greater opportunity to get the latest technology to support seniors in getting and staying connected. Workcover Greater emphasis is being concentrated on the return to work of injured employees back to their pre injury duties/hours in a timely manner working closely with external rehabilitation consultants, Doctors and Case Managers from WorkCover. Claims have been able to remain minimal due to increased awareness of working safely by employees and continued training in manual handling. Mike Newman Manager Human Resources
Page Page12 12
Manager Property Report I am happy to present my annual report for the year ending 30 June 2013. Since my appointment as Manager of Property in 2011 the past year has been yet another great year for development and further challenges. Contracts In the past financial year we have been able to make some sharp contractual arrangements for our external services. Due to continuing involvement with the Synergy Procurement and the Synergy Property Managers group this has enabled us to connect and benefit through existing Synergy contracts. We have also been involved in new contract negotiation saving Clayton Church Homes an estimated $55,000 per year on recent contractual arrangements. In the financial year ending 30 June 2013 we have negotiated new contracts with:
Eco Lab (Chemicals)
Southern Cross Protection (Security Services)
Richard Jay (Laundry Maintenance)
Ricoh (Photo Copiers)
We did breach the maintenance and repairs budget for Prospect and Park Village year ending 30 June 2013 due to large scale roofing repairs and air conditioning repairs. Independent Living We have had a great year for independent living. We completed a full refurbishment of Unit 5/26 Queen Street which lead to the property swiftly becoming occupied. We have seen a good steady level of enquiries for the Magill ILUs providing us with four (4) new entries. With evolving marketing campaigns for Beulah Terraces we have had ten (10) new entries. We would have hoped that it would be fully occupied at this point, but influencing property factors have had an effect on new licences. Magill Vacant: Nil Queen Street Vacant: Nil
Facility Maintenance The facilities have continued to be maintained at a high level, once again with no major reportable concerns out side of what is considered usual property maintenance. We have introduced further initiatives and tasks to the Maintenance Schedule across all sites to lower the risk of unexpected problems.
Beulah Terraces Vacant: 10 Staff With a resignation last year we employed Hector Luna who covers maintenance at Prospect on a three day per week basis and maintenance at Beulah Terraces one day per week. This change provoked the move of Robert Tschina to Magill five days per week. Phillip Matheson remains at Park Village three days per week and at Beulah Terraces two days. Thank you for taking the time to read my report and everyone’s continued support over the last year.
Stephen Collins Manager Property
Page Page1313
Manager Quality Assurance Report The last 12 months have seen significant changes to our organisation as well as our Quality Systems, as CCH strives to continuously improve the systems in place. The following is a report on our performance, in areas related to quality, over the last 12 months and some of the major changes that we have implemented. Audits/Surveys • Accreditation & Support Visits: Aged Care Standards and Accreditation Agency - has conducted announced and unannounced Assessment contacts at all sites with positive outcomes. The reports of an Assessment contact provide us with an opportunity to review and improve our systems and processes to achieve the best outcome for our organisation and the residents. The feedback from the Agency is used to review and update Procedures and Forms. • Internal Audits: o Moving on Audits (MOA) – Clayton Church Homes continues to utilise one of the best continuous improvement system tools through audits, surveys and quality indicators on monthly basis. We identify lots of potential improvements from the MOA tools and incorporate into our systems to provide the quality care that our residents deserve. The program is running as per schedule and the reports are available to the management team for review and discussion.
The MOA tools also ensure that we are auditing our systems against industry standards. Reporting and Analysis We continue to receive significant inputs from our reporting channels, especially from Have Your Say (HYS) forms. Staff, residents and relatives are increasingly using this form to provide feedback. Appropriate action is taken to address the issues raised. The reporting structure has also been remodelled for the Senior Planning Group (SPG) and Site Management Meeting (SMM) groups. The members of these forums are reporting with much more detail for effective communication among members. The other reporting tools used within the organisation continue to provide benchmarks on performance and areas of concern. Staff Consultation and Communication • Senior Planning Group (SPG) and Site Management Meeting (SMM) - meetings are conducted for each group, as scheduled, to maintain the proactive approach in implementing ideas and actions resulting from analysis of trends, audits and reports. SMM group has been reviewing Procedures and Forms now, as Clinical Consultative Group (CCG) was dissolved last year. This has been very effective as the forms and procedures, requiring reviewing & updating, are getting fortnightly attention. • WHS Committee – A new WHS committee has been elected in line with the new Work, Health and Safety Act (2012) SA. The group had three (3) meetings this year, since formation.
Page Page1414
Manager Quality Assurance Report Miscellaneous • Manuals and Assessment forms are being updated to reflect current care practices and ensure improved care; clear and better communication among clinical team, allied health professionals and other stakeholders. • Training Registers and Master Action Plans, for each site, have been very effective since they were re-structured last year. This helps in maintaining clear and accurate records.
CCH continues to pursue its Vision and Guiding Principles to provide quality care for the residents. Thank you for taking time to read my report. I look forward to continuing to work together with you in future.
Mayur Bedi Manager Quality Assurance
Page15 15 Page
Financial Statements
Clayton Church Homes Inc For the Year Ended 30 June 2013
Page Page 16 16
Board of Directors Report Your committee members submit the financial report of Clayton Church Homes Inc ("Association") for the financial year ended 30 June 2013. COMMITTEE MEMBERS The names of committee members throughout the year and at the date of this report are: Mr Brian Hern (Chair) Mr Brian Piller (Deputy Chair) Mr Des Borgelt (retired) Mrs Jenny Stewart Rev Don Catford Ms Margaret Sammut Ms Kaye Armstrong (retired) Mr Akos Nagy PRINCIPAL ACTIVITIES The principal activities of the association during the financial year were the provision of Residential Aged Care and the provision of Independent Living Units. SIGNIFICANT CHANGES No significant change in the nature of these activities occurred during the year. OPERATING RESULT The net surplus for the year amounted to $2,897,042. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR No matter or circumstance has arisen since the end of the year which significantly affected or may significantly affect the operations of the Association, the results of those operations or the state of affairs of the Association in subsequent years. BENEFITS RECEIVED BY BOARD MEMBERS In accordance with section 35(5) of the Associations Incorporation Act, 1985, the Board of the Association, hereby states that during the year ended 30 June 2013: (a) no committee member; or no firm of which the committee member is a member; or no entity in which the committee member has a substantial financial interest, has received or become entitled to receive a benefit as a result of a contract between the officer, firm or body corporate and the Association. (b)
no officer of the Association has received directly or indirectly from the association any payment or other benefit of a pecuniary value.
Signed in accordance with a resolution of the members of the Committee.
______________________________ Chairperson
Board member
Signed at Clayton Church Homes
This 2
nd
Page 17
day of October 2013
Statement by the Members of the Committee
In the opinion of the committee the financial report as set out on the following pages: 1.
Presents fairly the financial position of Clayton Church Homes Incorporated as at 30 June 2013 and its performance for the year ended on that date in accordance with Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board.
2.
At the date of this statement, there are reasonable grounds to believe that Clayton Church Homes Incorporated will be able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the Committee and is signed for and on behalf of the Committee by:
Page 18
Statement of Comprehensive Income Note
2013
2012
$
$
Revenue Resident Fees
3,548,563
3,323,936
10,319,271
9,039,135
Accommodation Charge
391,910
341,695
Accommodation Bond Retention
233,872
208,721
Interest Received
470,099
533,936
Dividends Received
188,810
190,806
1,682
9,878
47,094
101,330
1,506,780
1,254,780
430,840
235,800
17,138,921
15,240,017
761,962
65,813
17,900,883
15,305,830
13,650
13,000
4,398
4,270
Contract Laundry, Cleaning & Catering
1,906,669
280,349
Depreciation
1,677,012
1,553,595
Employee Expenses
7,755,728
8,469,984
-
483,838
Fuel, Light & Power
373,426
358,042
Insurance
109,071
103,579
Interest Charged on Loan & Accomm Bonds
570,060
1,158,113
-
44
Legal & Consulting Fees
836,067
549,577
Medical Supplies
205,426
227,303
Maintenance & Repairs
504,905
560,023
Rates & Taxes
174,502
181,423
Specialty Health Professional
313,048
229,748
Other Expenses
491,549
470,694
528
4,899
67,802
101,008
15,003,841
14,749,489
2,897,042
556,341
Commonwealth Subsidies
Donations/Raffles Other Income ILUs - Management Fee Movement in Market Value – Licence Fee Total Revenue
Other Income: Net gain on revaluation of financial assets Total Income for the Year
2
Expenditure Accounting & Audit Fees Bank Charges
Food Supplies
ATO Interest Expense
Loss on Disposal of Assets Beulah Terrace Expenses 3
Total Expenditure
Operating Surplus (Deficit)
The accompanying notes form part of these financial statements.
Page 19
Balance Sheet STATEMENT OF FINANCIAL POSITION As at 30 June 2013 Note
Current Assets Cash and Cash Equivalents
2013
2012
$
$
4
7,836,909
5,997,908
Trade and Other Receivables
5
550,947
2,721,686
Prepayments
6
57,845
54,625
8,445,700
8,774,219
7
3,905,425
3,237,012
8
81,869,900
78,913,510
Total Non-Current Assets
85,775,325
82,150,522
TOTAL ASSETS
94,221,025
90,924,742
9
1,018,617
1,399,161
Provisions
10
326,858
349,464
Accommodation bonds
11
17,082,856
16,797,777
Resident contributions
11
22,237,900
18,138,320
Resident accounts
12
264,550
336,250
Borrowings
13
4,596,352
12,346,352
45,527,133
49,367,324
120,686
91,016
120,686
91,016
TOTAL LIABILITIES
45,647,819
49,458,340
NET ASSETS
48,573,206
41,466,402
Equity Retained Earnings
21,606,954
18,709,913
26,966,252
22,756,489
48,573,206
41,466,402
Total Current Assets Non-Current Assets Financial assets Property, Plant & Equipment
Current Liabilities Trade and Other Payables
Total Current Liabilities
Non Current Liabilities Provisions
10
Total Current Liabilities
Asset Revaluation Reserve EQUITY
The accompanying notes form part of these financial statements.
Page 20
Statement of Changes in Equity Retained Earnings
Asset Revaluation Reserve
Total
$
$
$
18,153,572
24,080,534
42,234,106
Profit for the year Other comprehensive income for the year
556,341
-
556,341
-
(1,324,045)
(1,324,045)
Total comprehensive income
556,341
(1,324,045)
(767,704)
18,709,913
22,756,489
41,466,402
Profit attributable to the entity Other comprehensive income for the year
2,897,041
-
2,897,041
-
-
-
Total comprehensive income
2,897,041
-
2,897,041
retained earnings
-
4,209,763
4,209,763
Total other transfers
-
4,209,763
4,209,763
21,606,954
26,966,252
48,573,206
Balance at 1 July 2011
Comprehensive Income
Balance at 30 June 2012
Comprehensive Income
Other Transfers Cummulative revaluation surplus relating to the sale of property, transferred to
Balance at 30 June 2013
For a description of each reserve, refer to Note 19.
The accompanying notes form part of these financial statements.
Page 21
Statement of Cash Flows Note
Cash Flows from Operating Activities Receipts from Residents & Government Subsidies Payments to Suppliers & Employees Interest Received Borrowing costs Net Cash Provided by Operating Activities
2013
2012
$
$
20,363,484 (13,315,316) 547,880 (537,694) 7,058,354
14,206,980 (11,536,971) 552,401 (944,533) 2,277,877
Cash Flows from Investing Activities Payment for Property, Plant & Equipment Investment in Shares Net Cash (Outflows) from Investing Activities
(423,639) (1,430,375) (1,854,014)
(5,859,222) (813) (5,860,035)
Cash Flows from Financing Activities Receipts from accommodation bonds Payments of accommodation bonds Repay borrowings Net Cash Inflows/(Outflows) from Financing Activities
13,460,555 (9,075,896) (7,750,000) (3,365,341)
23,405,180 (12,859,367) (5,348,648) 5,197,165
Net Increase (Decrease) in Cash Held
1,839,001
1,615,008
Cash at beginning of Reporting Period
5,997,908
4,382,900
7,836,909
5,997,908
Cash at end of Reporting Period
15(b)
15(a)
The accompanying notes form part of these financial statements.
Page 22
Notes to the Financial Statements Notes to and forming part of the Financial Statements for the year ended 30 June 2013 1
Summary of Significant Accounting Policies The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations and the Associations Incorporations Act 1981. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements has been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Accounting Policies The Association has however elected to adopt the exemptions available under AASB 1 relating to AASB 132: Financial Instruments: Disclosure and Presentation, and AASB 139: Financial Instruments: Recognition and Measurement. Refer Note 13 Change in Accounting Policy for further details. (a)
Income Tax The Association is exempt from income tax in accordance with Section 50-5 of the Income Tax Assessment Act.
(b)
Property, Plant & Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Land and Buildings were last revalued on 30 June 2013 by AON Valuation Services. The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows which will be received from the assets' employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the association and the cost of the item can be measured reliably. All repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets is depreciated on a straight line basis over the assets' useful life commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable asset are: Class of Fixed Asset Depreciation Rate Buildings Plant & Equipment Furniture, Fixtures & Fittings Motor Vehicles Computer Equipment
2% 10% 5% 22.5% 20%
Page 23
Notes to the Financial Statements The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each balance date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposal are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. (c)
Financial Instruments Initial Recognition and Measurement Financial assets and liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchase or sell the asset. Financial assets are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method. Held-to-maturity investments These investments have fixed maturities, and it is the Association's intention to hold these investments to maturity. Any held-to-maturity investments held by the Association are stated at amortised cost using the effective interest rate method. Available-for-sale financial assets Available-for-sale financial assets include any financial assets not included in the above categories. Availablefor-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity. Financial liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Impairment At each reporting date, the Committee assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.
Page 24
Notes to the Financial Statements Accommodation Bonds
Accommodation bonds are non-interest bearing deposits made by aged care facility residents to the group upon their admission to low care and extra service accommodation. The liability for accommodation is carried at the amount that would be payable on exit of the resident. This is the amount received on entry of the resident less deductions for fees and retentions pursuant to the Aged Care Act 1997. Accommodation bonds are classified as current liabilities as the group does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. The obligation to settle could occur at any time. (d)
Impairment of Assets At the end of each reporting period, the association reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value-in-use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.
(e)
Employee Benefits Provision is made for the Association's liability for employee benefits arising from services rendered by employees to the end of their reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related oncosts. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wages increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.
(f)
Cash & Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, and other short term highly liquid investments with original maturities of three months or less.
(g)
Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable. Revenue from the Commonwealth Government is recognised at the receipt of funding. Resident contributions are recognised at the date of invoicing. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Dividend revenue is recognised when the dividend income is received.
(h)
Borrowing Costs Borrowing costs are directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised as expenses in the period in which they are incurred.
Page 25
Notes to the Financial Statements (i)
Goods & Services Tax Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown exclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(j)
Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where the association has retrospectively applied an accounting policy, made a retrospective restatement or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed.
(k)
Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(l)
Provisions Provisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.
(m)
Key Estimates (i) Impairment The Association assesses impairment at each reporting date by evaluating conditions specific to the Association that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value in use calculations performed in assessing recoverable amounts incorporate a number of key estimates.
(n)
New Accounting Standards for Application in Future Periods
Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2013 reporting period and have not been used in preparing these reports.
AASB 7 Financial Instruments - Disclosures AASB 9 Financial Instruments AASB10 Consolidated Financial Statements AASB 11 Joint Arrangements AASB 12 Disclosure of Interests in Other Entities AASB 13 Fair Value Measurement AASB 119 Employee Benefits AASB 127 Separate Financial Statements AASB 128 Investments in Associates and Joint Ventures AASB 132 Financial Instruments: Presentation
Page 26
Notes to the Financial Statements Standards containing consequential amendments to other Standards and Interpretations arising from the above - AASB 2010-7, AASB 2011-7,AASB 2011-8, AASB 2011-10, AASB 2012-2, AASB 2012-3, AASB 2012-5, AASB 2012-6 and AASB 2012-10. The Home is of the view that with the exception of AASB 13 Fair Value Measurement, none of the above new standards or interpretations will affect any of the amounts recognised in the financial statements, but that they may impact certain information otherwise disclosed. As at 30 June 2013 the impact of the introduction of AASB 13 Fair Value Measurement was unable to be quantified with the current information available however it is not anticipated to have a material affect to the Financial Statements moving forward.
Page 27
Notes to the Financial Statements 2
2013 $
REVENUE AND OTHER INCOME Government & Resident Revenue Commonwealth Subsidies Resident Fees Other Revenue ILUs - Management Fee Movement in Market Value Interest Received Accommodation Bond Retention Accommodation Charge Dividends Received Gain in Market Value of Shares Other Income
Total Revenue
10,319,271 3,548,563 13,867,834
9,039,135 3,323,936 12,363,071
1,506,780 430,840 470,099 233,872 391,910 188,810 761,962 48,776 4,033,049
1,254,780 235,800 533,936 208,721 341,695 190,806 65,813 111,208 2,942,759
17,900,883
15,305,830
2013 $
3
EXPENSES Employee Expenses Depreciation Interest Charged on Loan & Accomm Bonds Food Supplies Repairs & Maintenance Other Expenses Total Expenses
2012 $
7,755,728 1,677,012 570,060 504,905 4,496,136 15,003,841
2012 $
8,469,984 1,553,595 1,158,113 483,838 560,023 2,523,936 14,749,489
There are no significant revenue and expense items relevant in explaining financial performance.
4
CASH & CASH EQUIVALENTS Cash in hand Cash at Bank Short-term bank deposits Total Cash & Cash Equivalents
8,560 4,573,082 3,255,267 7,836,909
8,560 2,874,566 3,114,783 5,997,908
97,833 338,042 39,134 75,938 550,947
65,826 2,544,505 35,029 76,327 2,721,686
36,416 21,428 57,845
36,238 18,386 54,625
3,905,425 3,905,425
3,237,012 3,237,012
The effective interest rate on short-term bank deposits was 2.25% (2012 - 3.00%). These deposits have an average maturity of 30 days.
5
6
7
TRADE & OTHER RECEIVABLES Trade Receivables Accommodation bonds outstanding GST receivable Accrued Interest Total Trade & Other Receivables PREPAYMENTS General insurance Other Total Prepayments FINANCIAL ASSETS Listed shares Total Financial Assets
Page 28
Notes to the Financial Statements 8
2013 $
PROPERTY, PLANT & EQUIPMENT Land Buildings At Valuation At Cost Less Accumulated Depreciation Capital work in progress - at cost Total Land & Buildings
22,110,000
22,160,000
83,315,000 24,548,270 90,909 80,967,638
64,645,000 13,536,766 22,398,630 77,943,136
Plant & Equipment At cost Less Accumulated Depreciation Total Plant & Equipment
1,631,615 729,353 902,262
1,597,465 627,090 970,375
Motor vehicles At cost Less Accumulated Depreciation Total Motor Vehicles
51,547 51,547 -
51,547 51,547 -
Total Property, Plant & Equipment
81,869,900
78,913,510
(a)
Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year Capital Plant & Land Buildings Works Equipment Total $
$
Additions at cost Revaluations Disposals / Impairment Depreciation Expense
23,535,000 (1,375,000) -
43,482,035 13,724,759 50,955 (1,474,613)
7,905,531 (7,905,531) -
1,009,362 164,204 (124,210) (78,982)
75,931,928 13,888,963 (1,324,045) (8,029,741) (1,553,595)
Carrying Amount at End of Year
22,160,000
55,783,136
-
970,374
78,913,510
Additions at cost Revaluations Disposals Depreciation Expense
22,160,000 (50,000) -
55,783,136 291,588 4,259,764 (1,567,758)
90,909 -
970,374 41,670 (528) (109,255)
78,913,510 424,167 4,209,764 (528) (1,677,013)
Carrying Amount at End of Year
22,110,000
58,766,730
90,909
902,261
81,869,900
2012 Balance at the beginning of the year
2013 Balance at the beginning of the year
$
2013
9
2012 $
$
2012
TRADE AND OTHER PAYABLES $ $ CURRENT 189,550 118,218 Trade Payables 42,796 376,124 Accounts Payable and Accrued Expenses 76,733 60,788 Accrued Salary & Wages 528,560 505,850 Accrued Annual Leave 99,596 213,579 Accrued Loan Charges 32,366 58,558 Commonwealth Benefits Payable 49,016 66,044 Other Payables Total Trade & Other Payables 1,018,617 1,399,161 Accrued Loan Charges - The end of the financial year fell on a Sunday, therefore the repayment of interest occurred on the next business day.
Page 29
Notes to the Financial Statements 2013 $
10 PROVISIONS Employee Benefits-Long Service Leave Total Provisions
2012 $
447,544
440,480
447,544
440,480
Provision for LSL Opening balance at 1 July 2012
440,480 94,330
Additional provisions Amounts used
(87,266)
Balance at 30 June 2013
447,544
2013 $
Analysis of Total Provisions
2012 $
Current
326,858
349,464
Non Current
120,686
91,016
447,544
440,480
Provision for Long-term Employee Benefits A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits has been included in Note 1 to this report. 2013 $
2012 $
11 ACCOMMODATION BONDS Accommodation bonds
17,082,856
16,797,777
Resident contributions
22,237,900
18,138,320
2013 $
12 RESIDENT ACCOUNTS Resident personal expense accounts
2012 $
264,550
336,250
4,596,352
12,346,352
13 BORROWINGS Loan from UCInvest > 1 year A fixed charge security was provided over the land and buildings of Clayton Church Homes Incorporated. 14 CONTINGENT LIABILITIES There are no contingent liabilities at balance date.
Page 30
Notes to the Financial Statements 15 CASH FLOW INFORMATION
2013 $
2012 $
Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to items in the Balance Sheet as follows:
7,836,909
5,997,908
Cash and cash equivalents
7,836,909
5,997,908
2,897,042
556,341
1,677,012
1,553,595
761,962
(65,813)
2,170,738
(263,301)
(3,220)
(5,942)
(537,694)
(944,533)
157,151
1,503,398
7,064
(59,009)
(71,700)
3,141
7,058,355
2,277,877
(a) Reconciliation of Cash
(b) Reconciliation of Cash Flow from Operations with (Deficit) Net Surplus
Non-cash flows in net surplus Depreciation Change in market value - shares
Changes in assets and liabilities (Increase)/Decrease in Trade and Other Receivables (Increase)/Decrease in Prepayments (Increase)/Decrease in Interest Paid on Loan & Accommodation Bonds Increase/(Decrease) in Trade Payables and Accruals Increase/(Decrease) in Employee Entitlements Increase/(Decrease) in Resident Accounts Cash from Operations
(c) Non-cash Financing and Investing Activities There were no non cash financing or investing activities during the financial year.
(d) Credit Standby Arrangements and Loan Facilities The Association does not have any credit standby arrangements or unused loan facilities.
Page 31
Notes to the Financial Statements 16
FINANCIAL RISK MANAGEMENT The Association's financial instruments consist mainly of deposits with banks, short-term investments, and accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Note
Financial Assets Cash and cash equivalents Loans and receivables Available-for-sale financial assets: - equity investments Total Financial Assets
2012
$
$
4 5
7,836,909 550,947
5,997,908 2,721,686
7
3,905,425
3,237,012
12,293,281
11,956,606
Note
Financial Liabilities Financial liabilities at amortised cost: - trade and other payables - employee benefits - LSL - borrowings Total Financial Liabilities
2013
9 10 13
2013 $
2012 $
1,018,617 447,544 4,596,352
1,399,161 440,480 12,346,352
6,062,513
14,185,993
Clayton Church Homes' Finance Management Committee is responsible for, among other issues, monitoring and managing financial risk exposures of the entity. The Committee monitors the entity's transactions and reviews the effectiveness of controls relating to credit risk, financial risk and interest rate risk. Discussions on monitoring and managing financial risk exposures are held monthly by the Committee. Specific Financial Risk Management Policies The main risks the Association is exposed to through its financial instruments are interest rate risk and liquidity risk. a)
Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the entity. The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. Clayton Church Homes has no significant concentration of credit risk with any single counterparty or group of counterparties. Details with respect to credit risk of trade and other receivables are provided in Note 3.
b)
Liquidity risk Liquidity risk arises from the possibility that the entity might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. Clayton Church Homes manages this risk through the following mechanisms. - preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities
Page 32
Notes to the Financial Statements Financial liability and financial asset maturity analysis Within 1 Year 2013 2012
2013
Total 2012
457,691
834,754
457,691
834,754
Total contractual outflows
457,691
834,754
457,691
834,754
Total expected outflows
457,691
834,754
457,691
834,754
550,947
2,721,686
550,947
2,721,686
550,947
2,721,686
550,947
2,721,686
93,256
1,886,932
93,256
1,886,932
Financial liabilities due for payment Trade and other payables (excluding annual leave and grants received in advance)
Financial assets - cash flows realisable Cash and cash equivalents Trade and other receivables Total anticipated inflows Net (outflow)/inflow on financial instruments
Financial assets pledged as collateral No financial assets have been pledged as security for any financial liability. c) Market risk (i) Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows.
(ii)
(iii)
Interest rate risk is managed by reviewing investments on a regular basis. The Association has $4,596,352 debt at 30 June 2013. Price risk The Association is not exposed to any material commodity price risk. Foreign currency risk Sensitivity Analysis
The following table illustrates sensitivities to the association's exposures to changes in interest rates and equity prices. The table indicates the impact on how profit and equity values reporting at the end of the reporting period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables. Profit Year ended 30 June 2013 - 2% in interest rates
$ 91,927 390,543
- 10% in available for sale investments
Year ended 30 June 2012 - 2% in interest rates
246,927 323,701
+ 10% in listed investments
No sensitivity analysis has been performed on foreign exchange risk, as the Association is not exposed to foreign currency fluctuations.
Page 33
Notes to the Financial Statements 17
FINANCIAL INSTRUMENTS (b) Interest Rate Risk The Association's exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows: Variable Interest Rate
Fixed Interest Rate Maturing (> 1 Year)
Non Interest Bearing
Total
2013 $
2013 $
2013 $
2013 $
Financial Assets Cash and cash equivalents Trade and Other Receivables Other Financial Assets
4,573,082 -
3,255,267
8,560 550,947 -
4,581,642 550,947 3,255,267
Total Financial Assets
4,573,082
3,255,267
559,507
8,387,856
2.25%
4.56%
Financial Liabilities Trade and Other Payables Borrowings
-
4,596,352
1,018,617 -
1,018,617 4,596,352
Total Financial Liabilities
-
4,596,352
1,018,617
5,614,969
Variable Interest Rate
Fixed Interest Rate Maturing (> 1 Year)
Non Interest Bearing
Total
2012 $
2012 $
2012 $
2012 $
2,883,126 2,721,686 3,114,783
Weighted Average Interest Rate (%)
Financial Assets Cash and cash equivalents Trade and Other Receivables Other Financial Assets
2,874,566 -
3,114,783
8,560 2,721,686 -
Total Financial Assets
2,874,566
3,114,783
2,730,246
8,719,594
Weighted Average Interest Rate (%)
3.00%
-
5.45%
Financial Liabilities Trade and Other Payables Borrowings
-
12,346,352
1,399,161 -
1,399,161 12,346,352
Total Financial Liabilities
-
12,346,352
1,399,161
13,745,513
(c) Net Fair Values The net fair values of assets and liabilities approximates to their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down as the Association intends to hold these assets to maturity. Due to the nature of the financial instruments held by the Association the costs associated with their settlement are not material. As a result the fair value of the instrument is calculated at its face value. In the case of debtors an allowance has been made for doubtful debts where appropriate. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and in the notes to the financial statements. Fair values are materially in line with carrying values.
Page 34
Notes to the Financial Statements 18
19
AUDITORS' REMUNERATION Remuneration of the auditor for: Auditing the 2013 financial report.
2013 $
13,650
RESERVES (a) Asset Revaluation Reserve The Asset Revaluation Reserve records revaluation of property, plant & equipment assets for the year ended 30 June 2013.
2013 $
26,966,252
20
EVENTS AFTER BALANCE DATE There are no known events after balance date that materially affect the 2013 Financial Statements.
21
ASSOCIATION DETAILS The Registered Office and Principal Place of Business of the Association is: Clayton Church Homes Incorporated 156 Main North Road Prospect SA 5082
Page 35
2012 $
13,000
2012 $
22,756,489
Notes to the Financial Statements 22
SEGMENT REPORTING The Association operates in the aged care industry within South Australia. The Association has two primary business segments: 1. The provision and management of residential aged care facilities: RAC Service ID: 6032 N 6170 N 6188 N
Clayton Church Homes Hostel Clayton Church Homes Park Village Clayton Residential Aged Care Service (N/H)
2. The provision and management of retirement villages and facilities. Residential Aged Care
Other
Total
Revenue
14,440,935
3,459,948
17,900,883
Expenses
12,169,286
2,834,555
15,003,841
2,271,649
625,393
2,897,042
Assets
42,212,497
52,008,528
94,221,025
Liabilities
18,273,814
27,373,855
45,647,669
Total Equity
23,938,683
24,634,673
48,573,356
Residential Aged Care
Other
Total
Revenue
13,200,160
2,105,669
15,305,829
Expenses
11,519,185
3,230,303
14,749,488
1,680,975
(1,124,634)
556,341
Assets
45,637,220
45,287,522
90,924,742
Liabilities
18,334,625
31,123,715
49,458,340
Total Equity
27,302,595
14,163,807
41,466,402
2013
Surplus / (Deficit)
2012
Surplus / (Deficit)
Page 36
Independent Audit Report
Page 37
Independent Living Unit Financials
Clayton Church Homes Inc For the Year Ended 30 June 2013
Page 38 38 Page
Norwood Independent Living Units Clayton Church Homes Incorporated 24-26 QUEEN STREET Profit and Loss Account For the Year Ended 30 June 2013
Description
Actual 2012
Actual 2013
Budget 2013/14
$ 15,232 67,800
$ 13,956 68,700
$ 18,403 85,800
83,032
82,656
104,203
795 59 20,662 11,343 2,639 6,622 12,700
116 1,003 0 5,665 10,624 2,118 7,268 (4,200)
2,100 450 13,200 13,000 4,000 7,000 27,500
Total Expenses
54,820
22,593
67,250
Surplus/(Deficit)
28,212
60,063
36,953
OTHER INCOME Resident Fees 1 Management Fees
Total Income
LESS: OVERHEAD EXPENSES
TRADING EXPENSES Wages Administration Fuel, Light & Power Maintenance Depreciation Insurance General Rates & Taxes 2 Licence Fees
Notes: 1. Management Retention Fee: Represents the 6% (5% Management Fee + 1% Capital Replacement Fee) per annum retention by Clayton Church Homes for 5 years, calculated on the residents’ contribution on occupation. 1% Capital Replacement fund has a balance of $33,900 2. Licence Fee: Liability incurred by Clayton Church Homes at valuation.
Page 39
Magill Independent Living Units Clayton Church Homes Incorporated 43 FISHER STREET Profit and Loss Account For the Year Ended 30 June 2013
Description
Actual 2012
Actual 2013
Budget 2013/14
$ 125,507 663,900 4,881
$ 119,002 617,700 6,011
$ 135,720 339,300
794,288
742,713
475,020
6,973 53,776 2,758 35,266 162,343 13,257 27,988 (223,100)
3,607 13,462 51,000 33 31,566 162,284 10,589 44,164 (427,800)
6,608 2,500 53,040 3,100 22,000 177,000 16,000 26,000 340,000
Total Expenses
79,262
(111,095)
646,248
Surplus/(Deficit)
715,026
853,808
(171,228)
OTHER INCOME Resident Fees 1 Management Fees Other Income Total Income
LESS: OVERHEAD EXPENSES
TRADING EXPENSES Wages Administration Other 2 Administration Levy Fuel, Light & Power Maintenance Depreciation Insurance General Rates & Taxes 3 Licence Fees
Notes: 1. Management Retention Fee: Represents the 6% (5% Management Fee + 1% Capital Replacement Fee) per annum retention by Clayton Church Homes for 5 years, calculated on the residents’ contribution on occupation. 1% Capital Replacement fund has a balance of $566,550 accumulated since February 2008 2. Administration Levy: Salaries and Wages, administrative costs incurred by Clayton Church Homes in the management of the units. 3. Licence Fee: Liability incurred by Clayton Church Homes at valuation
Page 40
Beulah Terraces Independent Living Units Clayton Church Homes Incorporated 144-148 BEULAH ROAD Profit and Loss Account For the Year Ended 30 June 2013
Description
OTHER INCOME Resident Fees 1 Management Fees Other Income & Interest Received Total Income
Actual 2012
Actual 2013
Budget 2013/14
$ 42,193 523,080
$ 109,527 820,380 17,905
$ 137,280 966,180
565,273
947,812
1,103,460
5,123 54,405
16,027 51,000 8,179 11,663 8,810 279,279 11,648 28,200 1,160
28,392 53,550 1,000 13,000 20,000 320,000 20,000 25,000 1,231,910
LESS: OVERHEAD EXPENSES
TRADING EXPENSES Wages 2 Administration Levy Administration Costs Fuel, Light & Power Maintenance & Security Depreciation Insurance General Rates & Taxes 3 Licence Fees
9,594 7,247 175,560 7,740 22,341
Total Expenses
282,019
415,966
1,712,852
Surplus/(Deficit)
283,254
531,845
(609,392)
Notes: 1. Management Retention Fee: Represents the 6% (5% Management Fee + 1% Capital Replacement Fee) per annum retention by Clayton Church Homes for 5 years, calculated on the residents’ contribution on occupation. 1% Capital Replacement fund has a balance of $223,910 accumulated since November 2011 2. Administration Levy: Salaries and Wages, administrative costs incurred by Clayton Church Homes in the management of the units. 3. Licence Fee: Liability incurred by Clayton Church Homes at valuation. Page 41
