annual report 2017 - genu karingal st laurencecontents 3 karingal annual report 2017 about this...

ANNUAL REPORT

2 0 1 7

Enriching peoples’ lives throughpartnership, advocacy and choice

We welcome your feedback

Feedback is important to us and contributes to improving the value of future reports for our readers. We welcome your comments about this annual report and ask you to forward them to us through the links on our website www.genu.org.au

More copies of the 2016/17 Karingal Annual Report

Hard copies are available from:

genU Head Office

1 Riverview Tce, Belmont

Email: [email protected]

Phone: (03) 5249 8900

If you require an alternative format version, please contact: [email protected]

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About this report The Karingal Inc Annual Report 2017 provides an overview of Karingal’s performance from 1 July, 2016 to 30 June, 2017. The information in this document is reporting against goals and objectives of Karingal’s five-year Strategic Plan 2012 – 2017 and includes information on activities supporting our vision, mission and guiding principles.

This report gives details on our services, how we have performed, a summarised financial performance and information on the people who worked with us and for us. A Financial Statement Report has been produced separately and is available to members and significant funders.

This report will be presented at the Karingal Annual General Meeting in November.

Contents

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K A R I N G A L A N N U A L R E P O R T 2 0 1 7

About this report 2

Who we are 4

Vision and Mission 5

Report from the Chair 6-7

Report from the CEO 8-10

Our Services 11

65 Years of Memories 12-13

Our People 14

Our Achievements 15

Goal 1 16-17

Goal 2 18-19

Goal 3 20-21

Goal 4 22-23

Our Executive 24-26

Our Board 27-30

Risk Management 31

Financial Summary Report 32

Statement of Income and Expenditure 33

Statement of Assets and liabilities 34

Karingal Locations 35

Who we areWhen Karingal first opened its doors in 1952, it also opened up new opportunities for children with a

disability and their parents. These parents had a simple wish – they wanted their children to have the same

opportunities and supports that other children had within the broader community.

Today, Karingal is a leader within the disability sector in Victoria, but this growth has not changed its focus.

People with a disability, their families and carers remain at the centre of Karingal services – through its

mission and vision and through the services it provides every day of the year.

Karingal comprises a six-member Board, 2108 staff and 198 volunteers; provides residential, respite, home-

based and day activities for people with a disability and their families; aged services and mental health

support across Victoria, within Barwon South West, Wyndham and Mornington Peninsula; employment

in a supported environment in an Australian Disability Enterprise in Geelong; as well as disability and open

employment services in Geelong, across Melbourne, Warrnambool, Colac, Bendigo and in offices in

Queensland and Adelaide.

Karingal is an incorporated body under the Victorian Associations Incorporation Reform Act 2012 (Vic) and a

registered charitable association.

For further information contact Board Executive Officer,

Karen Grant on (03) 5249 8980 or [email protected]

Registered Name: Karingal Inc.

Registered Address: Karingal House

1 Riverview Terrace

PO Box 558

Belmont VIC 3216

ABN: 97 468 305 401

Reg Association No: A0038261E

Charitable statusKaringal is a recognised deductible gift recipient (DGR), endorsed by the Australian Tax Office. People who

make donations of $2 or more to Karingal are able to claim the donation as a deduction when filing their

personal income tax return.

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Vision

A fully inclusive community where people with

a disability live the life they choose.

Mission

Enriching peoples’ lives through support,

advocacy, partnership and choice.

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Report from the Chair

Dr Irene Irvine

Chair Board of Directors

A big year for Karingal

Karingal has experienced significant change over the

past 12 months, as we completed our merger with

St Laurence Community Services (SLCS) and added

to our business with the purchase of ESH Group.

Chief Executive Officer Mike McKinstry provides more

details of these events in his report, but needless to

say the future is exciting as we move forward together

as Karingal St Laurence Limited, recently rebranded

to genU.

The past 12 months were also a time of reflection,

on what we have achieved over the past 65 years.

We hope that those families who established the

playgroup which would become Karingal in 1952, are

proud of our achievements, and our continued goal

of improving the lives of people with a disability and

those who are experiencing disadvantage.

We are excited about the future, building as it does

on the proud history of two successful disability

organisations.

Karingal St Laurence House for Life strategy

In 2008, the Karingal Board made an initial investment

of $5 million, with the remaining funds coming through

partnerships with carer groups, local, state and

federal governments, grants, bequests, donations

and family contributions. This initiative resulted in long

term housing and support for 49 people and seven

respite and transition to independence places. This

includes the commencement of two new services,

one in Frankston and the other in Sunbury.

The Karingal St Laurence Board endorsed the KSL

House for Life strategy in the 2016-17 financial year.

This strategy aims to further increase our commitment

to addressing the high level of unmet need in

housing for people with a disability by developing or

redeveloping shared living or residential respite for 92

people over the next five years.

From 2017-2022 our proposed total investment is

forecast to be $21.7 million as we strive to create

further accommodation opportunities for people with

a disability.

In Portland, the construction of a four-bedroom house

and attached one-bedroom unit is well underway. The

Portland Lighthouse Home Inc. has been an integral

partner in this development, with support from the

Federal Department of Social Services and the

Victorian Department of Health and Human Services.

Tara’s Dream in Ocean Grove includes the

construction of a five-bedroom house, two-bedroom

unit and two one-bedroom units, with construction

set to begin in late 2017. Other projects include the

construction of a four-bed house and two-bed villa in

McCrae and the Melaluka Units in Leopold.

Karingal St Laurence Limited will be actively

fundraising to support existing and future projects.

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Performance overview

The acquisition of ESH Group, together with the merger

with St Laurence Community Services, will provide

a strong foundation to ensure the future viability of

Karingal St Laurence (KSL) Limited. The consolidation

of corporate services and the integration of systems

across the organisation, will provide future financial

savings and efficiencies, allowing for the continued

investment into direct client infrastructure

and services.

Notwithstanding the continued challenging financial

environment KSL operates within, the outlook for KSL

remains positive, with KSL forecast to return to a surplus

in 2017/18. For further details on Karingal’s financials,

see pages 32 to 34.

Changes to the Board and thanks

This was a significant year for Karingal, with the merger

signifying the end of an era and the start of something

new, moving forward as genU.

Mike McKinstry, who served as Karingal CEO for

2016/17 and St Laurence Community Services CEO

for a time in the 2016/17 financial year, was appointed

Chief Executive Officer of the merged organisation and

former Karingal Chair Rod Payne has been appointed

Chairman of the new merged entity. To reduce

duplication, it was decided that the individual entities of

Karingal and St Laurence Community Services and the

new merged entity (Karingal St Laurence) would have

mirrored Boards.

The genU Board Directors are; Mr Rod Payne, Dr

Patrick Lockie, Dr Brian Donovan, Dr Irene Irvine, Ms

Diane James AM, Mr Stephen Roberts, Mr Michael

Carroll, Mrs Cheryl Graham and Mr David McArthur.

Mr Mark Seller joined the Karingal Board in February

2003, and continued in that role until he retired on 30

June 2017. Mark was instrumental in ensuring a robust

process was adopted for evaluating future options for

Karingal and for championing the merger. On behalf of

the current Board, I thank Mark for his insights, his hard

work and his dedication to the organisation.

I also thank all Directors of the Karingal Board, who

served in a voluntary capacity, for their unwavering

commitment to the organisation and I wish those

continuing on the genU Board every success.

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Report from the CEO I would like to thank Karingal Association Members, Board Members,

Executive, staff, clients, families, business partners and community

leaders for their support over the past year.

On 30 June 2017, I have been at Karingal for two years now, and it

has been a time of significant and exciting change that will pave the

way for our organisation to grow stronger into the future.

The ongoing dedication and support of all stakeholders has been so

important to me, and very much appreciated.Mike McKinstry

Chief Executive Officer

Karingal St Laurence merger (now genU!)

On 5 August 2016 we announced that Karingal

would merge with another leading Geelong-based

community service organisation, St Laurence

Community Services, following a ‘Yes’ vote

by members of both organisations. Since the

announcement, both organisations have been

working together on transitioning across to a single

organisation – Karingal St Laurence.

The two organisations’ Board of Directors, Executive

Team, and Management Teams have spent the year

working towards transitioning the various parts of the

business into a single entity, and integrating through a

structured change and integration process. Karingal

and St Laurence Community Services continued to

operate as separate organisations during the last

financial year until they became the new legal entity

Karingal St Laurence on 1 July 2017. As stated

above, Karingal St Laurence is now known as genU.

For me, this merger is primarily about providing

people with a disability, and those who are

disadvantaged, with a more comprehensive range of

services both now, and in the decades to come.

Karingal St Laurence now provides services and

supports to over 4,000 clients across the Barwon,

Wyndham and Mornington regions, including 207

supported employees within our disability enterprises.

In addition, we now provide employment services to

over 14,000 DES and 54,000 jobactive job seekers

across our national network of offices.

The disability services and aged care sectors have

significantly changed, and will continue to evolve

well into the future. The same can be said for our

MatchWorks division in the employment services

sector. This merger provides a secure foundation,

allowing us to move forward with more certainty for

our clients and families, job seekers, older clients

and staff.

Karingal St Laurence also provides a stronger local

voice, and a further dimension to Geelong’s reputation

as a ‘centre of excellence’ for disability and aged

care, alongside other key organisations such as NDIA,

TAC, WorkSafe and Deakin University in Geelong.

In March 2017, I took on the role of CEO of St

Laurence Community Services following the departure

of Toby oConnor as well as continuing my role of CEO

of Karingal and Karingal St Laurence. This additional

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role assisted in the ongoing integration process and I

was able to work closely with the Boards of each entity.

I’d like to recognise Toby’s significant contribution, as

we worked together with both Boards and Members to

enable the merger to occur.

Accomplishing such a successful integration within a

short time needed the concerted effort of many people.

I would like to thank both Karingal and St Laurence

Community Services management and staff for all

of their hard work and expertise in assisting with the

transition process.

Merger Integration

In December 2016, more than 200 staff from the

two organisations came together at the ‘KSL Merger

Mingle’. Staff learnt about the different areas across

Karingal and St Laurence Community Services, while

getting to know one another over a drink and nibbles.

Throughout the transition period, we also brought the

two organisations together by cobranding some of

our biggest calendar events for people with a disability

across Geelong, such as the Big Night Out, Geelong

Awards for People with a Disability, and KarnivART.

ESH Group acquisition

Late in 2016, we announced the acquisition of

Employment Services Holdings (ESH) Group by

Karingal, following successful negotiations and the

completion of an intense due diligence process. This

important acquisition became part of Karingal St

Laurence when the legal transition was completed on

1 July 2017.

The ESH Group is a leading provider of employment,

training, recruitment and labour hire services,

comprising of two separate businesses – Employment

Services Group (ESG) and IPA Personnel. It has offices

throughout the states of Queensland, New South

Wales, Victoria and Western Australia, as well as in

the Australian Capital Territory. This complements the

services we currently deliver through MatchWorks in

Victoria, Queensland and South Australia, and as such,

transforms Karingal St Laurence into a truly national

organisation going forward (as we now have offices in

every state in Australia, except Tasmania and Northern

Territory).

This is a strong platform upon which we can now look

to grow into the future.

This purchase now ranks MatchWorks and ESG

combined as a substantial national provider of

employment services across Australia. The acquisition of

IPA Personnel also provides a recruitment and workforce

solutions business to expand Karingal’s services to

employers.

As part of Karingal’s strategy, the Board and Executive

have been actively seeking new business opportunities

that support Karingal’s growth and future financial

viability, through scale and diversity. This acquisition

provides Karingal with the opportunity to continue

delivering and supporting clients and job seekers in

the employment sector, and importantly including

disability employment services nationally. The increased

geographical coverage and income diversification

will allow us to continue to advocate for people with

a disability, and those who are disadvantaged in the

community.

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Eastern Hub first birthday

In April 2017, we celebrated the first anniversary

of Eastern Hub Geelong, with different activities

including cake decorating, art therapy, yoga, sewing,

swing dancing, an animal farm as well as music

throughout the day.

The first 12 months was an exciting time for the

community space. We’ve genuinely seen the Hub

develop its unique footprint in Geelong.

The Hub employs people with a disability in venue

support, cooking, and front-of-house roles, and

continues to build its reputation as the region’s

centre point for inclusion.

It has also established itself as a venue catering

to a wide range of stakeholders, in a friendly and

accessible environment. The community space has

hosted functions for Geelong’s business leaders,

community groups, not-for-profit organisations and

local government agencies while keeping its primary

focus of providing a space for people with a disability

to learn and grow.

Built on the original Karingal site on the corner of

McKillop and Humble streets, the $6.5 million centre

has continued the traditions of an organisation which

boasts 65 years of local history.

Final Karingal Annual Report

While this will be the final Karingal Annual Report, I

am tremendously excited for what the future holds

for Karingal St Laurence – for our clients, for our

members, and for our staff.

We are extremely proud of Karingal’s rich history,

and we know it’s strong DNA will be carried on for

generations to come as part of genU.

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Our Services Karingal delivered services through five operational divisions – Karingal Services, MatchWorks, Corporate

Services, Risk and Compliance, and Strategic Partnerships and Projects.

Karingal services are predominantly centred around people with a disability, their carers and older

Australians. For these groups Karingal provides the following services:

n Accommodationn Recreation and leisuren Home-based supportsn Respite servicesn Supported employment opportunitiesn Volunteersn Corporate social responsibility

MatchWorks provides employment services for job seekers, including people with a disability through:

n Disability Employment Servicesn jobactiven Work for the Dole

Other areas predominantly provide professional advice and support to the organisation to ensure areas

working directly with our clients can focus on core business and further growth.

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65 YEARS OF MEMORIES

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K A R I N G A L A N N U A L R E P O R T 2 0 1 765 YEARS OF MEMORIES

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Our PeopleKaringal Staff and Volunteer Numbers

Total sta�numbers

Total Full TimeEquivalent (FTE)

Volunteers

0

500

400

300

200

900

800

700

600

100

1000

1100

1200

1300

1400

1600

1700

1800

1900

2000

2100

2200

1500

2014/15

2015/16

2016/17

2108

1753

1726

1552

1175

1154

198

212

287

Figures correct as at 30 June 2017

Total staff – includes supported employees and ESH Group

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Our AchievementsKaringal’s Strategic Plan affirms our commitment to a fully inclusive community where people with a disability

live the life they choose. One of the most important things we can achieve is working together with people

with disabilities to support them to lead the life they want. Our Mission and Vision underpin our goals and

highlight how important it is to achieve this in partnership with people with a disability.

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Deadly Yakka graduates

Outcomesn Service provider of choicen Every client has exercised choice/control throughout their involvement with Karingaln Clients are achieving their personal outcomesn Suite of service options reflects client needsn Ease of access for people with a disability

Strategiesn Adapt our services and build support options to best meet client needsn Support and empower people with disabilities to exercise control and choicen Improve access for service users to enable choice through streamlined systems and technology

Deadly Yakka motivates Indigenous job seekersFifteen Indigenous job seekers from Queensland graduated from the MatchWorks Deadly Yakka program

in December 2016.

Deadly Yakka is specially designed for unemployed Indigenous job seekers and those who require more

employment options, to develop skills in finding a job as well as reviewing their career direction.

Participants were assisted with job readiness,

confidence building, engagement with employers

and general communication skills. Job seekers

were also involved in role play, a job fair and learnt

about personal presentation for interviews.

Participants left the program feeling motivated

and enthusiastic about their futures, having

received a confidence boost to move forward

with finding a job.

Goal 1 Enable people with a disabi l ity to have control and choice over their l ives.

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Nothing fuzzy about Ryan’s talent From mixing beats on his laptop at home to performing to a

room full of people, Ryan ‘DJ Fuzzy Logic’ Schmidtke has

come a long way over the past ten years. Ryan has cerebral

palsy and uses an electric wheelchair to get around but with

reasonably good control of his left hand, his family were able to

modify a DJ system to accommodate his needs.

With a passion for both good tunes and coffee, it is little wonder

Ryan chose Mule Coffee Shed to host his birthday party. After

seeing him DJ for his friends, co-owner David Leary was quick

to offer him a regular gig at the café, saying that when he first

saw Ryan perform, he just heard the music, he didn’t see

the chair.

Ryan first put his hand up to DJ publicly around eight years ago

at Karingal’s Disco at Central and from there, he was hooked.

He was never going to let his disability stop him from pursuing a

career in music.

Ryan ‘DJ Fuzzy Logic’ Schmidtke

Joel realises employment goals A struggle with language, literacy and numeracy was an open

problem for Joel when he first walked through the doors of Karingal

Training Sunshine, but he was determined to explore new work

opportunities through education.

With the help of dedicated Karingal Training trainer, Genevieve, he

completed two job ready qualifications and a work placement and is

now happily working for Home Instead Senior Care.

Joel established his goals with his trainer and enrolled in a Certificate

IV in Mental Health and Certificate IV in Disability. Achieving the two

qualifications would take a lot of commitment but Joel was more

than up to the challenge. He completed the two certificates in 2016

and quickly found employment in the community sector, saying the

courses and placement were instrumental in his employment.

Joel

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Outcomesn Karingal’s ‘traditional’ services remain operationally viable and supportedn Healthy financial staten 10-year growth strategy is current and reflective of new strategic plan and initiativesn Calculated risk growth proposals are encouraged and welcomed by the Board

Strategiesn Broaden community, business and government connections to develop growthn Seek growth opportunities with the future and unmet needs of clients in mindn Ensure growth is planned and sustainable

Karingal provides Home Care Packages in SA Karingal is delivering Home Care Packages in South Australia which provide high level care to older people

living at home. Following a successful tender application in September, Karingal received approval to provide

Level 3 and Level 4 packages. The aim is to keep older people in their own home for as long as possible by

offering the support they need including personal care, nursing care, equipment, travel, respite and social

support. Two case managers started with Karingal in June to deliver the service, which covers the Southern

Metropolitan Aged Care Planning region.

Providing Home Care Packages in South Australia is a positive move for Karingal as it looks to grow its

services. With MatchWorks already established in Adelaide, it is an opportunity to work together and

address potential barriers to work caused by caring obligations.

Goal 2 Growth is planned, proactive and sustainable.

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Karingal expands to North East Melbourne Karingal started an exciting new chapter, offering services and supports for people with a disability in the

North East Melbourne area. The expansion started on 1 July 2016 and coincided with the rollout of the

National Disability Insurance Scheme in the area.

The Karingal branch offers support co-ordination, support connections, tenancy and housing support, life

transition planning, employment pathways, community planning and inclusion, life skills development and

support to engage in learning.

The Greensborough MatchWorks office provided the initial base for the branch. Delivering Karingal

services in an existing MatchWorks location is a proactive approach which will be beneficial as

MatchWorks staff can share their local knowledge and connections.

KarnivART arrives in Mornington Mosiacs, paintings and drawings surrounded excited guests in October at the launch of the inaugural Karingal

KarnivART Mornington.

Family, friends, artists and business members gathered to see the 76 impressive entries from local independent

artists, art programs and disability organisations.

Vlada Allison was awarded first prize honours for her work, ‘Clown’, while the Mornington Peninsula Youth Prize

was presented to Liam Flannery-Doyle for his piece, ‘Chance’. Kathleen Forscutt’s ‘The Card Players’ and Peter

Kuzmicky’s ‘Red Dog’ were also recognised.

KarnivART was extended to the Mornington Peninsula after six successful years in the Geelong region, and

provides a fantastic opportunity to showcase the artwork of talented local artists with a disability. The exhibition

was supported by the Mornington Peninsula Shire.

First prize winning ‘Clown’ by Vlada Allison Liam Flannery-Doyle is awarded the Youth Prize by youth representative, Jody

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Finalists and the MatchWorks team at the NESA Awards for Excellence

Outcomesn We contribute and influence at the policy leveln We are asked to pilot, initiate and comment on policy by decision makersn People of influence seek us out including business leaders and communityn We have access to people of influencen Our leadership is acknowledged by clients and families

Strategiesn Be innovative, flexible and responsive to lead sector changen Influence and advocate for policy changen Foster and develop partnerships that create a more inclusive communityn Increase recognition and understanding of Karingal’s leadership and innovative role

MatchWorks shines at annual NESA Awards MatchWorks job seekers and employers experienced more success at last year’s National Employment Services

Association (NESA) Awards for Excellence, taking home two awards.

Mornington job seeker Tom McGann won the Achiever of the Year Award, while FUSO Geelong and MatchWorks

took out the Innovation in Disability Employment team award. MatchWorks Bendigo employment consultant

Sylvia Phan was a finalist in the Employment Consultant of the Year.

The awards night proved to be a celebration of the inspiring work MatchWorks does for its clients and employers.

Goal 3 Be recognised as a leader and innovator in the disabi l ity sector.

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Local achievers celebrated for ability Six outstanding achievers were celebrated for their

contribution to the community at the Karingal St

Laurence Geelong Awards for People with a Disability

ceremony in February 2017 at the Geelong Library

and Heritage Centre.

Honours went to Simone Stevens for Volunteering,

Annalise Bishop for Sports and Recreation, Nicci

Wall for Leadership and Advocacy, Ryan Schmidtke

for Achievement, and Michael Chan for Arts, while

the Young Achiever award was presented to Chloe

Hayden.

The awards event, a Karingal St Laurence and City of

Greater Geelong initiative, recognised the impressive

achievements of people with a disability living in

the Geelong region. The awards strengthened the

region’s status as a leader in the sector by shining a

spotlight on the incredible contributions of people with

a disability.

Geelong Awards for People with a Disability award winners

Housing forum The House for Life Action Group

held a National Disability Insurance

Scheme and Housing Forum at

Eastern Hub Geelong in September

2016. The group discussed the

current shortage in housing for

people with a disability and the

need to work together to find a

solution.

Lou O’Neil and Sam Crinall from the National Disability Insurance Agency national office with Lynne Foreman and Karingal’s Julie Graham

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Outcomesn Attraction and retention of staffn Organisations seek partnering relationshipsn Informed staff and clientsn Stakeholders understand and share our visionn Increased community awareness of Karingal

Strategiesn Enhance our brand/imagen Develop responsive and open communication with all stakeholdersn Develop and enhance (internal) information systems and processesn Develop and empower Karingal staff to meet current and future needs of clientsn Align leadership capability and diversity with strategic directionn Share and live the vision and mission

Goal 4 Strengthen Karingal ’s culture and capabil ity

Hundred Hole Hike An intrepid group of golf enthusiasts

successfully took on the extreme challenge

of completing 100 holes of golf in one day,

all in the name of raising much-needed

funds to support programs for people living

with an acquired brain injury.

Twenty-nine hikers took to the immaculate

fairways of Barwon Heads’ 13th Beach

Golf Links in January 2017 and enjoyed

a fantastic day of play. Music to a Tee

followed the golf marathon, and featured

great local music acts Heartache State, Hey

Mammoth and The Carers Choir. The event

has become a feature event of the Karingal

St Laurence calendar.

Hiker tees off at the Hundred Hole Hike

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Karingal St Laurence Big Night Out In late 2016, over 500 people attended the hugely successful Karingal St Laurence Big Night Out. The

night is the region’s only fully inclusive annual gala event and sees local Geelong business representatives,

people with a disability, community groups, and Karingal St Laurence staff, family and friends come

together for a night of music and dancing.

Barwarre Open Day

The Barwarre Gardens Open Day held in October 2016

coincided with last year’s Seniors Festival. Over 100

visitors came along to hear about retirement living and

inspect the display homes. The theme of the day was

International Flavours, with Seasons preparing delicious

food for guests. Three display homes were open for

inspection on the day and visitors were able to view the

variety of home designs on offer.

Karingal Training ask “R U OK?” As part of R U OK? Day in September 2016,

Karingal Training staff, volunteers and students

hit their local streets, handing out flowers and

encouraging people to consider their own and

others’ mental health by asking “R U OK?” They

encouraged people in their local communities to

start a conversation or reconnect with someone

with whom they had lost touch in support of

suicide prevention organisation R U OK?

Karingal Training staff for R U OK Day?

Barwarre Gardens Open Day

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Mike McKinstry CHIEF EXECUTIVE OFFICER

Mike McKinstry was appointed Chief Executive Officer of Karingal in July 2015.

His 35-year career has spanned Australia, the United Kingdom and the United

States, where he held a number of significant management positions within large

organisations including Hills, Amcor, Alcoa and Rover/Land Rover. Mike has most

recently worked across sectors as a strategic business advisor.

Organisational memberships outside of Karingal:

n Member – Committee for Geelong Strategy and Policy Committee

n Member – Geelong Business Club

n Member – Australian Institute of Company Directors (MAICD)

Tertiary qualifications:

n BA Honours Economics and Marketing

Brandon Howard CHIEF OPERATING OFFICER - CORPORATE

Brandon Howard has been with Karingal since August 2014. Prior to this, Brandon

was the Business Operations Manager at Epworth Healthcare in Richmond,

Deputy Chief Financial Officer at St Vincent’s Public Hospital in Melbourne and

Financial Controller at Barwon Health in Geelong.

Organisation memberships outside of Karingal St Laurence:

n President – Healthcare Finance Management Association (HFMA)

n Director – Baptcare

n Director – Churches of Christ Properties Corporation

n Member – CPA Australia

n Member – Australian Institute of Company Directors

n Member – Rotary Club of Geelong


n Diploma in Business Management

n Bachelor of Commerce

n Master of Business Administration

Our Executive as at 30 June 2017

Hundred

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Julie GrahamEXECUTIVE DIRECTOR - DISABILITY & SOCIAL ENGAGEMENT

Julie Graham has been with Karingal since 1996. She has been Executive General

Manager of Disability and Social Engagement since 2015. Prior to this, she was

the General Manager of Karingal Strategic Development (2011 - 2015), General

Manager of Karingal Corporate Services (2008 - 2011) and General Manager of

MatchWorks (2002 - 2008). Julie’s first appointment was with SupportWorks as

Employment Trainer and Employment Consultant. She then moved across to

MatchWorks at the start of Job Network in 1998.

Organisation memberships outside Karingal St Laurence:n Committee Member – Leaders for Geelong Advisory Subcommitteen Chair – Barwon ADE Networkn Board member – Geelong Regional Vocational Education Counciln Member – NDS Victorian ADE Advisory Groupn Member – Rotary Club of Geelongn Chair – Leaders for Geelong Alumni Working Group

Tertiary qualifications:n Graduate Certificate in Case Management and Client Servicesn Graduate Diploma in Human Resource Managementn Masters of Business Administration

Renae LowryEXECUTIVE DIRECTOR, EMPLOYMENT (MATCHWORKS)

Renae Lowry was appointed as the new Executive Director at MatchWorks in May

2016. Renae joined MatchWorks following a long and successful career working in

employment services, both at the frontline of operations and as a senior manager.

Renae delivered Disability Employment Services and Job Services Australia in New

South Wales and Victoria, before working in the UK for the past six years delivering

their employment services program. More recently she conducted research for UK-

based community services organisation Shaw Trust. Renae remains excited about

the opportunity to lead MatchWorks.

Organisation memberships outside Karingal:

n Board member – National Employment Services Australia


n Bachelor of Arts-Humanities

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Tim BoydEXECUTIVE DIRECTOR, PEOPLE AND CULTURE

Tim commence his employment with Karingal in January 2017, having previously held

the role of Executive Manager Human Resources at GMHBA. He is a Human Resource

practitioner with specialist skills in Learning & Development and Organisational Development,

and has extensive experience in facilitation and aligning organisational culture with strategy.

Organisation memberships outside Karingal:n Certified Member – Professional Australian Human Resource Institute CAHRIn Graduate – Australian Institute of Company Directors GAICDn Non-Executive Director – Vice Chairperson FCCS Credit Union

Tertiary qualifications: n Degree of Management Deakin Australia (Assoc.) Human Resource Major n University Diploma of Management Deakin Australia n Certificate 4 in Workplace Training and Assessment

Marnie TroethLEGAL COUNSEL

Marnie Troeth has been Karingal’s Legal Counsel since 2011 and has over 20 years’

experience as a lawyer. Marnie acted in the role of Executive Director, Risk and Compliance

from November 2016 to May 2017.

Marnie advises Karingal in all areas of law and is also responsible for overseeing corporate

secretarial functions of Karingal. She has a particular interest in governance and the not for

profit sector.

Organisation memberships outside Karingal:n Association of Corporate Counsel Australian Australian Institute of Company Directors (AICD)n Charity Law Association of Australia and New Zealandn Geelong Law Associationn Law Institute of Victorian Victorian Women Lawyersn Member – Law Institute of Victoria Charities and Not for Profit Committee

Tertiary qualifications:n Bachelor of Economics, Monash Universityn Bachelor of Laws, Monash Universityn Company Directors Course, AICDn Accelerated Leadership Performance Program, Women and Leadership Australia

Karyn HughesEXECUTIVE DIRECTOR, RISK AND COMPLIANCE

Karyn resigned from Karingal in November 2016 to embark on a travel adventure

around the world. Karyn began at Karingal in 2013 as the General Manager of Risk and

Compliance. This title later changed to Executive Director of Risk and Compliance.

27


Our Board as at 30 June 2017

The Karingal Directors bring to the Board a broad range of professional expertise and experience, as well as a

commitment to Karingal’s Vision, Mission and its Guiding Principles. Karingal Directors serve on the Board in a

voluntary capacity.

The Karingal Board has developed and implemented a governance framework that places greater emphasis on audit,

quality, and risk management.

Through four Board subcommittees, Directors instigate and monitor systems, processes, policies and procedures

to ensure Karingal’s operations conform to all legislative, funding and other contractual requirements, in addition to

ensuring the continued financial viability of Karingal.

The subcommittees meet regularly during the year and the composition of each subcommittee is determined according to

skills and experiences of Directors. Non-Directors who have skills and expertise in particular areas will occasionally attend

subcommittee meetings to address the needs of particular projects or issues. Each subcommittee has its own Terms

of Reference which is approved by the Board and includes its objectives, responsibilities, authority and composition. All

subcommittee activities are reported to the full Karingal Board through the regular Board meeting process.

Dr. Irene IrvineKARINGAL CHAIR

An experienced company director and chairman, Irene was appointed to the

Karingal Board in June 2012. Irene currently operates a boutique management

consultancy, I Irvine & Associates. Prior to this she held a series of senior

management positions in the education, not-for-profit, government and

commercial sectors; including five years as Pro Vice-Chancellor (Development)

with Deakin University. All of these roles involved marketing and business

development as well as extensive management responsibilities.

Irene’s board experience includes Director South Gippsland Water Board, Chair

Audit Committee South Gippsland Shire, Chairman Phillip Island Nature Parks,

Deputy Chair Zoos Victoria and Director State Trustees, Craft Victoria and Open

Gardens Australia.

Current Board Sub-Committees or Boards:n Finance

n Board Director – ESH Group Pty Ltd

Tertiary qualifications & Professional Associations:n Bachelor of Science

n PhD in Chemistry

n Graduate Diploma (Educations and Management)

n Graduate - Australian Institute of Company Directors

28

Mark SellerDEPUTY CHAIR

Mark Seller joined the Karingal Board in February 2003. Mark has experience as

Director of the Australian Business Volunteers, GMHBA and as local Chairman for

ACCESS Ministries, plus many years as an executive in the oil and gas industry.

Current Board Sub-Committees and Boards:

n Finance

n Risk (Chair)

n Karingal Aged Care Pty Ltd

Tertiary Qualifications & Professional Associations:

n Diploma of Applied Chemistry

n Diploma of Chemical Engineering

Rod PayneElected Chair in 2013, Rod Payne has been a member of the Karingal Board since

November 2000 and has previously served multiple terms as Chair and as Deputy

Chair. Rod is a Director and board member at Harwood Andrews Lawyers, specialising

in business law. In his business law practice Rod also advises family business groups

and not-for-profits, having recently become a member of the Australian Charity Law

Assoc.

Rod is also a Director of Bendigo Telco Ltd and Geelong Connected Communities Ltd.

Rod is a member of the Tax Institute of Australia.


n Ex-Officio on the Governance; Finance; Risk; Succession Planning and

Remuneration Committees.

n Board Director – ESH Group Pty Ltd

n Karingal Aged Care Pty Ltd


n Bachelor of Law

n Graduate – Australian Institute of Company Directors

29


Dr. Brian DonovanBrian Donovan joined the Karingal Board in November 2012. He previously served

on the Board from 1998 to 2000. Brian has had extensive experience in education

and disability services. He lectured in mathematics education at Phillip Institute

of Technology before joining Karingal, where he served as a volunteer, General

Manager and Director of Innovation. He has been a leader in advocacy for people

with a disability and their families for more than 30 years and also had leadership

roles in ageing and disability issues.

Brian currently sits on the Karingal Governance Committee and the Operational

Committee for the Karingal Disability Action Plan. He is a parent-carer of an adult

daughter with a disability who is living at home.

Current Board Sub-Committees:

n Governance

n Risk


n Bachelor of Arts

n Bachelor of Education

n Master of Education

n Doctor of Philosophy

Cheryl GrahamCheryl Graham has been serving on the Karingal Board since September 1998.

Cheryl has served in a number of roles during her time on the Board including

recent terms as Chair from 2010 to 2013 and previous terms as Deputy Chair from

2000 to 2003, 2006 to 2009 and 2013 to 2014.

Cheryl’s background in human resources and psychology has brought great depth

to the Karingal Board. Cheryl is a director of CMG Psychology Services a large

Psychology Practice in Geelong.

Current Board Sub-Committees:

n Governance & Succession Planning Remuneration (Chair)


n Bachelor of Arts (Psychology)

n Graduate Diploma Adolescent & Child Psychology

n Diploma of Education

30

David McArthurDavid McArthur is Karingal’s longest serving Board Director, first joining the Board in

1980. At the 2010 Annual General Meeting, David completed his fourth term as Chair

and now serves as standard Board Director.

David, who is retired, previously worked as a civil engineer with the City of Greater

Geelong and currently works part time with Aerospace Australia Ltd.

David, along with wife Pam, are full-time carers for their son who has autism and lives

at home.


n Governance

n Risk

n Succession Planning and Remuneration


n Bachelor of Civil Engineering

n Masters of Business Administration

31


Risk Management Risk and Insurance Attestation Statement

I, Dr Irene Irvine, Chair, certify that Karingal Inc. has: Risk management processes in place consistent with

the International Risk Management Standard (ISO31000:2009) and an internal control system that enables

the Executive to understand, manage and satisfactorily control risk exposures. The Board of Directors

verifies this assurance and that the risk profile of Karingal Inc. has been critically reviewed within the last

12 months.

Complied with Ministerial Direction 4.5.5.1—Insurance

As at 30 June 2017, all members of the Executive signed a Risk and Compliance Attestation Statement

providing confirmation they had reviewed their Risk Register, Compliance Register, reported any compliance

failures and signed a financial management attestation.

External and Internal Assurance – Karingal Inc. ensures that controls in place to mitigate major risks are

independently verified via a program of external and internal assurance (audits). Karingal Inc. is certified

to ISO 9001:2008 Quality Management Standard, National Standards for Disability Services (Cth) and

Department of Human Services Standards (Vic).

32

Financial Summary Report 2016/17 has been another busy year, with the merging of Karingal and St Laurence Community Services (KSL) and the acquisition of Employment Services Group (ESG) and IPA Personnel (IPA).

The merger, which was formerly approved in August 2016, has required significant focus and resourcing, with the consolidation of corporate services and systems across both organisations. This consolidation has already provided savings across corporate services and will continue to provide ongoing financial benefits as further consolidation occurs. This will allow Karingal St Laurence to continue to invest in the provision of services.

In December 2016, Karingal acquired ESG and IPA as part of its strategic growth strategy to move into new geographical areas and provide revenue diversification from government funding. The acquisition now provides KSL with a national footprint, with sites in all states, except Northern Territory and Tasmania. This will allow KSL to expand its aged and disability services geographically, including the tendering for the upcoming Disability Employment Services (DES) Contract. As a larger employment and disability provider, KSL is also able to have a greater influence in advocacy.

Karingal’s total revenue for 2016/17 was $181.6m, an increase of $66.9m, which was primarily driven by the consolidation of ESG and IPA operating results since December 2016. Consistent with this increase in revenue, total operating expenses (including cost of goods sold) also increased by $66.3m to $181.3m. The operating expenses were impacted by once-off merger and acquisition costs, together with investment in information technology (IT).

Karingal’s Net result before Depreciation and Capital items for the year ended 30 June 2017 was a surplus of $0.2m. The Net result for the year after depreciation and capital items was a deficit of $0.9m, which included depreciation of $3.5m and a revaluation increase for Barwarre Gardens Retirement Village of $2.3m.

Karingal continued to invest in capital infrastructure, with the completion of Stage 4 of Barwarre Gardens Retirement Village and supported accommodation. All units across the four stages of Barwarre have now been sold, with stages five to seven recently receiving planning approval.

Under the Retirement Villages Act, residents purchase a licence to occupy (lease), with Karingal continuing to retain ownership of the Independent Living Units (ILU). Under accounting standards, this licence must be recorded as a current liability, even though it is highly unlikely that it will be required to be paid within the next 12 months. This liability represents the incoming contributions paid by residents reduced by the deferred management fee. When residents leave and these contributions are repaid, it will be replaced by new incoming resident contributions, therefore having no impact on overall cash holdings. This liability has been recorded under ‘Loan Licences’ (note 14) and as at 30 June 2017 was $33m, an increase of $11.7m from last year.

The recording of this as a current liability, adversely impacts the liquidity ratio (current assets v current liabilities).

Net Assets (after deduction of liabilities) increased by $2.2m to $71.7m. Total Assets increased by $38.6m to $147.6m, which underpins Karingal’s continued solid financial base.

2017/18 OutlookThe outlook for KSL in 2017/18 looks positive, with the organisation returning to a surplus operating position. This will be achieved through continued corporate efficiency savings, including procurement contracts, consolidation of sites and the surpluses produced by the recent acquisition of ESG and IPA. Notwithstanding these positives, KSL continues to operate within a growing competitive market, with continued reductions in funding and margins across the various business activities.

KSL is committed to supporting and empowering our clients and consistent with previous years, KSL has planned to invest $26m in capital infrastructure, including new supported accommodation, the continued development of Barwarre Gardens Retirement Village and the construction of KSL’s new Head Office. The new Head Office will consolidate eight sites across Geelong, providing continued efficiencies, reducing facility leasing costs and providing improved collaboration.

2017/18 is shaping up to be another exciting year in which KSL is able to consolidate on the recent merger and acquisition, continue to build a strong financial foundation and invest in infrastructure and services to achieve our vision of ‘building inclusive communities’.

33


Statement of Income and Expenditure 2017 2016 ($’000) ($’000)

Revenue from operating activities:

Revenue from government and other grants 128,981 103,566Revenue from operating activities 51,206 9,781Revenue from outside operating activities 1,367 1,312

Total Revenue from operating activities 181,554 114,659

Less

Cost of goods sold (38,529) (1,536)

Gross Profit 143,025 113,123

EXPENDITURE

Salaries and salary on-costs (98,267) (83,061)Transport (3,962) (3,692)Property (10,852) (7,447)Client services (18,550) (11,674)Information technology (3,618) (1,984)Administration and other costs (7,465) (5,586)Finance costs (91) (39)

Total Expenditure (142,805) (113,483)

Net result from continuing operations before capital items 220 (360)

Depreciation (3,565) (2,866)Capital revenue 200 309Profit on Sale of property, plant & equipment - 660Write off of property, plant & equipment (6) -Investment property revaluation increment 2,274 1,220Net gain on acquisition - 431 Net result for the year (877) (606)

OTHER COMPREHENSIVE INCOME

Changes in fair value of financial assets 82 (76)Changes in fair value of PPE 3,035 (162)

3,117 (238)

2,240 (844)

34

Statement of Assets and Liabilities 2017 2016 ($’000) ($’000)

CURRENT ASSETS Cash & cash equivalents 11,775 11,777

Trade & other receivables 19,017 4,772

Other assets 1,919 1,507

Total current assets 32,711 18,056

NON CURRENT ASSETS

Other assets 95 77

Trade & Other receivables 1,277 223

Other financial assets 2,215 2,006

Property, plant and equipment 51,238 48,157

Investment properties 50,239 40,487

Intangible assets 9,793 -

Total non-current assets 114,857 90,950

TOTAL ASSETS 147,568 109,006

CURRENT LIABILITIES

Trade & other payables 19,312 7,284

Provisions 11,303 9,267

Loan Licenses 32,959 21,250

Borrowings 9,691 -

Total current liabilities 73,265 37,801

NON-CURRENT LIABILITIES

Provisions 2,571 1,713

Total non-current liabilities 2,571 1,713

TOTAL LIABILITIES 75,836 39,514 NET ASSETS 71,732 69,492

EQUITY

Reserves 9,249 6,132

Accumulated surplus 62,483 63,360

TOTAL EQUITY 71,732 69,492

35


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ABN: 97 468 305 401 ARBN: 158 375 903 Reg Association No: A0038261E

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