hcm annual report 2012

A N N U A L R E P O R T 2 0 1 2HOBART CITY MISSION

The Annual Report of the Board of Management of The Hobart City Mission Inc. for the year ended 30th June 2012,

being the 160th year of operation for the Mission.

INTRODUCTION

MembersHobart City Mission Inc.

Dear Members,

Pursuant to Rule 12 (5) of the Constitution of the Hobart City Mission Inc. (HCM), a body corporate established and constituted under the Associations Incorporation Act 1964, the Board of Management (the HCM Board) is pleased to submit its report on the exercise of the HCM Board’s powers, responsibilities and functions under its Constitution for the financial year ended 30th June 2012, being the 160th year of the Mission’s presence in Hobart.

The Annual Report incorporates a copy of audited financial statements prepared by the HCM Board for the year under review.

Yours sincerely,

Barry NeilsenPRESIDENTHCM BOARD OF MANAGEMENT

page 1.

TABLE OF CONTENTS

page 2.

PART 3THE FINANCIALS

PART 2THE ORGANISATION

PART 1THE BOARD

INTRODUCTION page 1. TABLE OF CONTENTS page 2.

PRESIDENT’S REPORT page 3.

THE HCM BOARD OF MANAGEMENT page 4.Duty of the HCM Board page 4.

Basic Objects of the Mission page 4.

Core Values of the Mission page 5.

Scope of Mission Activities page 6.

THE HCM BOARD OF MANAGEMENT GOVERNANCE page 7.Board Members and Office Holders page 7.

HCM Board Members and CEO page 8.

HCM Board of Management - Committees page 9.

Attendance at HCM Board and Committee Meetings 2011-12 page 10.

The HCM Board Strategy and Policy Development Process page 10.

Future Directions Statement 2009-13 page 11.

Corporate Intent 2012-13 page 12.

Highlights of Hobart City Mission Activities for 2011-12 page 13.

Board and CEO’s Assessment of Performance 2011-12 page 14.

Boards Assessment of Operational Management Performance page 18.

Management Diagnostic page 19.

HCM ORGANISATIONAL STRUCTURE AND OPERATIONAL REPORT page 20.The HCM Management Framework page 20.

Ramblings from the CEO’s Desk page 21.

HCM Organisational Chart page 22.

Good and Faithful Servants page 22.

Disability, Family and Community Support Services page 23.

Exciting News for 2012-13 page 24.

Business Development Unit page 27.

Corporate Services page 30.

Retail Report page 34.

THE HCM FINANCIAL REPORTS page 36.Statement by Officers page 36.

The HCM Inc. Statement of Comprehensive Income page ?

The HCM Inc. Program Based Statement of Comprehensive Income page ?

The HCM Inc. Statement of Financial Position page ?

The HCM Inc. Statement of Changes in Equity page ?

The HCM Inc. Notes To and Forming Part of the Accounts page ?

Independent Audit Report page ?

HCM - “Living faith through service in providing an emotional and physical hand up to those in need or marginalised within the local community”.

PRESIDENT’S REPORT

On behalf of the Board and Senior Management Team, I am pleased to be able present this report of the past years activities of the Hobart City Mission.

It chronicles the activities of the 54 dedicated staff and 133 wonderful volunteers whose efforts have touched the lives of a very large number of people in our local community who have sought our help.

The continuing improvement in the fundamentals of the Mission’s operations – delivery of services to clients, regard in our community, robust operational systems and financial health – is something for which we should pay tribute to the leaders within the organisation.

Some major activities in the past year include:

• Commencement of the project to develop the Haig Street property for use in the Group Homes program • Formulation of the Small Steps concept for a program to assist young mothers in need of support • Opening two new retail outlets

Of course, there are always challenges to be met – and sourcing the necessary funding to meet the needs we see is always a major one. The generous donations, sponsorship and bequests we receive are welcomed – but the capacity of people to give is finite. Government funding of programs in the current economic climate is somewhat uncertain. Nevertheless, the faith embodied in the first of our stated core values, can I’m sure, be relied upon to help us all to meet this basic challenge.

An inspiration to continue the work started by those who went before us is found in Revelations 2:19 -

“I know your deeds, your love and faith, your service and perseverance, and that you are now doing more than you did at first”

Yours sincerely,

Barry NeilsenPRESIDENTHCM BOARD OF MANAGEMENT

page 3.

THE HOBART CITY MISSION BOARD OF MANAGEMENT

DUTY OF THE HOBART CITY MISSION BOARD

It is the duty of the Hobart City Mission (HCM) Board to administer and manage the affairs of the Mission in accordance with the rules of its Constitution and any relevant laws of the State and Commonwealth for the sole purpose of meeting the basic objects, purposes and core values of the Mission.

In a practical sense, the HCM Board is responsible for ensuring that:-

• The business and affairs of the Mission are managed and conducted in a manner that is in accordance with sound commercial practice;• The Mission performs its required functions; and• The Mission achieves its Corporate Plan as articulated in the HCM Future Directions Statement 2009-2013.

To fulfil these responsibilities, the HCM Board must be and is actively involved in:-

• Setting strategic directions;• Securing and continually monitoring organisational performance;• Ensuring compliance with statutory requirements; and• Managing risk.

BASIC OBJECTS OF THE MISSION

The scope of the Mission’s activities is set out as basic objects in its Constitution. These basic objects are to:

(a) Be an ecumenical Christian charitable organisation with a passion to improve the life of those in need or who are marginalised within the local community by providing them with the necessary emotional, physical and financial support and guidance to empower and enable them to participate in community life with a sense of dignity, purpose and self reliance. (b) Undertake such work of philanthropic character as the Board shall from time to time determine.(c) Contract with Commonwealth, State and Community Sector Agencies for the delivery of services to those in need or who are marginalised within the local community.

page 4.

CORE VALUES OF THE MISSION

In achieving its basic objects, the HCM Board of Management on behalf of the clients, stakeholders, staff and volunteers of the Mission has embraced the following identifiable characteristics as its Core Values:-

• To affirm its ecumenical Christian heritage and to strive for the Christian principles of inclusiveness, love, faith through service and social justice as fundamental to the Mission’s operations;• To achieve mature, empowered, beneficial and effective relationships with clients, stakeholders, relevant statutory agencies and the community generally;• To work in partnership with the local community and other Community Service Organisations for the provision of services with respect to advocacy, mentoring and counselling, accommodation, retail training, financial and emotional support and guidance;• To achieve consistent revenues (donations, grants/bequests, investment returns) to enable the Mission to continue to operate on a sustainable basis;• To achieve financial independence through prudent financial management and an appropriate balance between government and philanthropic sources of funding;• To achieve exemplary corporate governance including risk management; and• To have empowered, professional and competent staff who meet the needs of the Mission and particularly its clients and stakeholders.

PART ONE // THE BOARD

SCOPE OF MISSION ACTIVITIES

In a practical sense, the current activities of the Mission as at 30th June 2012 were as follows:

PART

ONE

INTEGRATED FAMILY SUPPORT SERVICESChild WelfareLiason with DHHSLiason with Gateway ServicesEmergency Relief as required

GROUP HOMES Bligh StreetMercer StreetAtherton AvenueCorrea Street Individual Service Packages

COMMUNITY SUPPORT SERVICESSupported AccommodationEmergency ReliefCommunity Crisis ServicesCommunity Housing - Mountain ViewIdentified Vulnerable GroupsFinancial GuidanceFamily Support and Advocacy

CLINICAL COUNSELLING

MARKETING & EVENTSBusiness Case PreparationAdvertisingEvents/AppealsGrants/Funding SubmissionsPublic Relations

PASTORAL & COMMUNITY ENGAGEMENTPastoral Care/School ChaplaincyMission MembershipBequests Stakeholder Communication & Support

WAREHOUSESGoods Collection & StorageTransport - Delivery & Pick-ups

PROPERTY LEASING & MAINTENANCEPartridge NestBarrack CottageChapel Complex - Barrack Street

RETAIL OUTLETSHobart City (2)Moonah (2)WarraneHuonvilleGoodwoodClaremontSorell

VOLUNTEER RECRUITMENT & TRAINING

MISSION INFRASTRUCTUREICT Infrastructure & Maintenance Reception/Cashier/Banking & ER BookingsBoard & CEO SupportHRManagement & Contract RecordsGovernance & Policy RegisterCorporate CalendarProperty Maintenance & Statutory ReportingSecurity

FINANCEPayroll/Salary PackagingFinancial ReportingInsurance/Workers CompensationAcquittalsBudgeting/ActualsAudit CoordinationAccounts Rec/PayableATO Reporting

BOARD

DISABILITY, FAMILY &

COMMUNITYSUPPORTSERVICES

RETAIL

CORPORATESERVICES

CEO

BOARD

page 6.

BUSINESSDEVELOPMENT

BOARD MEMBERS AND OFFICE HOLDERS

The Constitution of The Hobart City Mission Inc. provides that subject to ratification by the HCM Board:-

• Membership of the Association is open to any person who certifies in writing that they uphold the objects and core values of the Mission. Membership of the Mission can be any of the following classes:-

- Denominational Member- Associate Member- Corporate Member- Ordinary Member

• Members of the HCM Board of Management are elected from Association membership for a term of three years, save that casual vacancies may be filled between Annual General Meetings with such Board Members being up for re-election at the next Annual General Meeting (AGM) following the appointment; and

• Notwithstanding membership of the HCM Board is for 3 years, Officers of the Board hold that office only for 1 year, but are eligible for re-appointment.

The Mission membership status as at 30th June 2012 of individual Board Members and Officers of the Board is:-

* Appointed to the Board as a consequence of a casual vacancy and as such is due for re-election at the 2012 AGM.

page 7.

BOARD MEMBER TERM OF OFFICE ENDS AT AGM POSITION OF OFFICE HOLDER

Barry Neilsen 2013 President

Gil Sawford 2014 Deputy President

John Wiggins 2014 Ordinary Board Member

Robin Errey 2013 Ordinary Board Member

Aileen Hough 2013 Ordinary Board Member

William Inglis 2013 Ordinary Board Member

Damian Egan 2014 Ordinary Board Member

Ripon Shield 2014 Ordinary Board Member

Rob Fiddyment 2014 Ordinary Board Member

*John Minchin 2013 Ordinary Board Member

THE HOBART CITY MISSION BOARD OF MANAGEMENT GOVERNANCE

PART

ONE


PART

ONE

Barry NeilsenPresident

Gil SawfordBoard Member

William InglisBoard Member

John WigginsBoard Member

Robin ErreyBoard Member

Aileen HoughBoard Member

Damian EganBoard Member

Ripon ShieldBoard Member

Rob FiddymentBoard Member

John MinchinBoard Member

Garry FletcherChief Executive Officer

HOBART CITY MISSION BOARD MEMBERS AND CEO

page 8.

HOBART CITY MISSION BOARD OF MANAGEMENT - COMMITTEES

The HCM Constitution allows the HCM Board to delegate to members, officers of the Board and staff certain powers, duties and functions to be exercised jointly in the form of Committees. The HCM Board has considered it appropriate to establish the following Committees:

• The Finance, Investment and Property Management Committee; and• The Communications, Infrastructure and Governance Committee.

The Constitution of each Committee is determined by the full Board with the Board being the sole authority for the appointment to and removal of members from a Committee. Each Committee is constituted mainly by voting Board members and the Mission’s Chief Executive Officer as a non-voting executive member of the Board. As at 30th June 2012 the Constitution of the two Committees was:-

The business objective for each Committee is summarised below:

• The Finance, Investment and Property Management Committee:-

The objective of the Committee is to make a positive contribution to the investment and property returns of HCM through timely and appropriate financial and property management decisions.

• The Communications, Infrastructure and Governance Committee:-

The objective of the Committee is to ensure that administrative issues (including marketing and communication, technology and infrastructure, audit, risk management and governance) are adequately monitored and directed, thereby increasing the business information available to the Board for strategic planning and decision making.

FINANCE, INVESTMENT AND PROPERTY

MANAGEMENT COMMITTEE

COMMUNICATIONS, INFRASTRUCTURE AND

GOVERNANCE COMMITTEE

Chairperson and Voting Member B. Neilsen G. Sawford

Other Voting Members J. WigginsW. InglisD. EganR. Shield

R. ErreyA. HoughJ. MinchinR. Fiddyment

Non-Voting Executive Member G. Fletcher G. Fletcher

Quorum of Members 4 (3 of whom must be voting) 4 (3 of whom must be voting)


PART

ONE

page 10.

ATTENDANCE AT HOBART CITY MISSION BOARD AND COMMITTEE MEETINGS 2011/12

* Retired during 2011/2012

THE HOBART CITY MISSION BOARD STRATEGY AND POLICY DEVELOPMENT PROCESS

The HCM Board of Management continuously updates its Business and Governance framework in line with the standards expected of a modern Community Sector Organisation. The Table below sets out the process followed as well as the scope of work involved in undertaking these governance upgrades:-

BOARD / COMMITTEE ORDINARY & SPECIAL BOARD MEETINGS

COMMUNICATION INFRASTRUCTURE & GOVERNANCE COMMITTEE

FINANCE, INVESTMENT & PROPERTY MANAGEMENT

Total Meetings Held During 2011/2012

10 0 2

Members Attendance at Meetings

B. Neilsen 8 0

G Sawford 8 -

J. Wiggins 9 2

A. Hough 8 -

R.Errey 10 -

W. Inglis 10 2

D. Egan 7 2

R. Shield 10 2

R. Fiddyment 8 -

J. Minchin 2 of 2 -

J. Laing* 2 of 8 -

G. Fletcher (CEO) 9 2

Appreciative Enquiry

Business Plan

Quality Control

STRATEGIC FUNCTIONS

>

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Infrastructure must be Compatible with Mission

Capabilities

Infrastructure (People, Places, Systems)

Organisational Structure and Staff Recruitment

Identity Factors that Impact on Strategy Objective in terms

of Critical and Major Impacts

Situational Analysis

The Task - HCM Strategy/Furture Directions Review

Identity Issues for next

Strategic Review

Study Feedback of Clients and Stakeholders

Analyse Business Plan Outcome and Monitor

the KPI’s

Implement the Business Plans

Develop the Business Cases and Write the

Success Factors and Key Perfrmance

Indicators

Select Preferred Niche Market Model

Having Regard to Situational Analysis and Major Factors,

Identify and Evaluate Business Model options

MAJOR POLICY DOCUMENT PROGRESS COMPLETES % HCM BOARD STATUS

2009 2010 2011 2012

HCM Corporate Plan – Future Directions Statement 2009-13 100% 100% 100% 100% Adopted – and Operational

Governance Manuals including delegations, privacy, conflicts of interest, etc

100% 100% 100% 100% All documents reviewed during 2011-12

Staffing Policies including Organisational Chart, HCM Key Activities, Position Descriptions and Organisational Structure

100% 100% 100% 100%All documents reviewed during

2011-12

Information Communication and Technology Strategy and Policies 100% 100% 100% 100% Adopted and Operational

Risk Management Including Fraud and Business Continuity 10% 25 % 50% 95%Adopted in Principle and being Imple-

mented

Quality Assurance Accreditation 25% 50% 90% 100% QA Accreditaion Granted

Finance, Investment and Property Management 100% 100% 100% 100% All documents reviewed during 2011-12

Communication, Infrastructure & Governance StrategyNot

StartedNot

Started50% 75% Being Researched and Developed

Business Plans (for current year) incorporating HCM Budget for 2011/12

100% 100% 100% 100% Adopted and Operational

page 11.

PART

ONE

FUTURE DIRECTIONS STATEMENT 2009 - 2013

• The Future Directions Statement was adopted by the HCM Board in October 2008 and covers the period from 2009 to 2013. The Future Directions Statement is still as relevant in 2012-13 as it was in 2008.

• The Future Directions Statement represents a Picture of what the Mission should look like and is doing in 2013. Business Plans represent the annual steps that need to be taken to achieve that picture. Like a yacht race, Business Plan steps are not usually a straight line progression and each year there needs to be a different ‘tack’ or ‘focus’.

• The Business Plan focus for each of the 5 years covered by the Future Directions Statement is:-

The following major policy documents were completed or progressing towards completion as at the 30th of June:-

YEAR FOCUS

2009 Designing structures, ICT infrastructure and business models based on contemporary research with appropriate governance.

2010 Transition and re-engineering of business to be in a position to move to agreed business model and finding the right people for the job.

2011 Developing critical mass and sustainability in all activities; refinement of the re-engineering focus based on experience.

2012 Developing critical mass and sustainability in all activities.

2013 Consolidation of business models and critical review.


CORPORATE INTENT 2012-13

In line with its Rules of Association (Rule 13) and its Governance Policy, the HCM Board of Management is required to articulate in its Annual Report, a statement on Corporate Intent relating to the next reporting year being the period 1 July, 2012 through to June 30, 2013. In this regard the HCM Board has identified the following major issues as impacting on its operating environment for the year ahead.

Business Case and Property Development

• Completing the development of Haig St as two Group Homes (1 new residence and conversion of Church/Community Centre to a residence).• Feasibility study into the development of the Moonah Warehouse site to include DFaCSS, Retail Services and supported accommodation.• Opening of another Retail outlet.• Implementation of the SmallSteps Business Case providing supported accommodation for young single mothers at risk of homelessness or having their child taken into State care.

New HCM Corporate Initiatives

• Consolidating the Mission’s business development marketing activities including:- - A whole of Mission Marketing Strategy; - Corporate Partnerships and Sponsorships; - Completion of a new website development and online services.

Governance

• Risk Management and Business Continuity Strategy.• Essential Building Maintenance and Safety (Form 56).• Regular financial performance reporting.

Regulatory Environment

• Introduction of Unit Pricing into all DHHS programs sometime during 2011-13• Implementation of the Tasmanian Support and Accommodation Assistance Review Strategy

Liability Risk Management

The HCM Board of Management has purchased Directors and Officers Liability Insurance to protect Board Members for the 2011/2012 financial year. In addition, the HCM Board has taken steps to manage risks and liabilities arising through operational activities by:

• Engaging Davidson Trahaire Corpsych to provide a comprehensive Employees Assistance Programme including some issues relating to workers compensation claims.• Effecting public liability, property and fidelity insurance cover.

page 12.

HIGHLIGHTS OF HOBART CITY MISSION ACTIVITIES FOR 2011-12

Overview

The HCM Board of Management is accountable under the Rules of Association for the performance of the Mission in achieving its basic objects and core values. In this regard, the HCM Rules of Association makes it clear the Board is responsible for ensuring:-

• The business and affairs of HCM are managed and conducted in a manner that is in accordance with sound commercial practice;• HCM performs its required functions;• HCM achieves its objectives as specified in the Constitution, or any other relevant Act, and the Corporate Plan of the HCM.

In order to fulfil these responsibilities, the Board must be actively involved in:• Setting strategic directions;• Securing and continually monitoring organisational performance;• Ensuring compliance with statutory requirements; and• Managing risk.

Major achievements and under achievements for 2011-12 include:-

(Positives)• Opening of New Retail Outlets in Claremont and Sorell• Full QA accreditation.• Capital inflow from bequests.• Improved investment returns from property leasing.• Secured a new vehicle through DHHS for Bligh Street Group Home.• Mission wide Volunteer Management Program.• Revised inventory management structure with improved security.• Substantial progress towards achievement of Mission financial viability and sustainability model.• Group Homes funding and viability – Resolution of dispute with DHHS.• Substantial progress towards achievement the development of Haig Street as Group Homes.

(Negatives)• Mission member and donor data base development delayed.• Development of niche marketing strategy for Mission delayed by organisational and staffing issues.


BOARD AND CEO’S ASSESSMENT OF PERFORMANCE 2011-12

PART

ONE

page 14.

CORE ACTIVITY INDICATORS ACTIVITY DESCRIPTION

TREND09/10

TREND10/11

TREND11/12

COMMENTS

1. To affirm its ecumenical Christian Heritage and to strive for the Christian principles of inclusiveness love, service and social justice.

> Membership of HCM Association.

> Active support of ecumenical Christian movement.

> Working Christian Partnerships.

• Number of members - say 120.

• All major denominations represented in Membership and on Board.

• Partnerships with other Christian organisations and CSO/N4Ps.

• Marking time but Constitution change will facilitate improvement.

• Marking time due to policy direction and staffing issues.

• Marking time due to policy direction and staffing issues.

2. To achieve mature, empowered, beneficial and effective relationships with clients, stakeholders, relevant statutory agencies and the community generally.

> Client Market Share.

> Membership of Industry & Professional Associations.

> One stop capacity for all HCM for products and services.

> Philanthropic and Community Partnerships.

• Critical Mass of clients in all products and services.

• Survey of clients and stakeholders as to relevance of products and services.

• Membership of relevant industry groups and professional associations.

• Participation in PEAK bodies and agency forums.

• All major services provided e.g. (SAAP) Group Homes, Training, Emergency Relief etc.

• Partnerships with other CSO N4Ps for services not provided by Mission.

• Expansion in ISPs in Group Homes activities.

• Client and stakeholder feedback now forms part of QA Client Rights policy.

• All PEAK bodies now have Mission Representation.

• Yes.

• Work in Progress. Additional resources given to Retailfor training and volunteer participation.

• Small Steps Program.

3. To work in partnership with the local community and other CSO/N4Ps for the provision of services with respect to advocacy, mentoring, accommodation, retail training, financial and emotional support and guidance.

> Form and Interactive Communication Strategy.

> Community Presence.

> Critical Mass.

• Degree and level that grant funding for HCM programs can be secured.

• Research and Stakeholder feedback on HCM Services.

• Level of co-operation with Regulators and Politicians, community organisations and professional groups.

• Number of partnership agreements to give rise to critical mass in all activities and services.

• Incremental improvement. Staff changes and budget have impacted. Much more focus on grants required.

• Substantial improvement, over past 6 months.

• There has been substantial improvement in Agency relationship management.

• Being actively researched with ISPs in Group Homes.

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PART

ONE

CORE VALUEHCM CONSTITUTION

INDICATORS ACTIVITY DESCRIPTION

TREND09/10

TREND10/11

TREND11/12

COMMENTS

4. To implement a service orientated approach in meeting the needs of the Mission’s clients so as to empower them with a sense of dignity, purpose and self reliance.

> Business Model based on Case Management.

> Infrastructure (ICT and Accommodation).

> Staffing/Volunteers.

• Business planning that covers all HCM activities & incorporates ‘whole of organisation’ considerations and addresses core values.

• Integrated infrastructure involving accommodation, phone, IT systems and data base management.

• Seamless case management approach across all HCM Business Units.

• Organisational structure which supports integrated service delivery.

• Yes .

• Yes.

• New SMT working well.

• HCM Volunteer Management Program has been huge success.

5. To achieve consistent revenues (donations, grants bequests, investments) to enable Mission to operate on a sustainable basis over rolling 4 year periods.

> Recurrent Income.

> Investment Returns.

> Staffing.

• Balanced budget after taking into account all capital and recurrent expenditure.

• Performance of investments;

- property - CPI + 4.5% - other CPI + 3.5%

• Business Unit budgets each to have funding strategy as part of annual business plan.

• A balanced budget was achieved during 2011-12 with substantial progress being made in this area with implementation of major reforms in financial operations.

• Substantial progress was made on maximising property utilisation during 2011/12.

• This has now been introduced.

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TREND09/10

TREND10/11

TREND11/12

COMMENTS

6. To achieve financial independence through prudent financial management and appropriate balance between government and philanthropic sources of funding.

> Trust/Bequest Funding.

> Property Investment Income.

> Non Property Investment Income.

> Prudent Cash Reserves and Provisions.

• Balanced between Govt & philanthropic funding as a % e.g.

- 60% Govt & - 40% Philanthropic

• Retail net profit as a % e.g.

- 20% over 4 years

• Diversified net revenue streams as a %.

- Investments 10% - Fund Raising 10%- Retail 5%- Trusts/Bequests 15%- Government Grants 60%

• Substantial bequest and capital inflows has markedly improved the Missions financial and liquidity position.

• Major activity for current and future years.

• New Retail outlet opened at Claremont and Sorell. Retail now established on commercial footing with profit expectations built into budget.

• Mission has established prudent reserves and provisions.

• Major achievement of past 12 months.

7. To achieve a critical mass of clients in all activities to justify the continuation of client services in each of those activities.

> Clients. • Welfare (Active).

• Group Homes - increase capacity through ISPs.

• Family Services - 25 residential clients inSAAP accommodation.

• Residential/Affordable Housing - 30 residents

• Solid growth in ER clients and introduction of Identified Vulnerable Groups program

• Whilst Haig Street Group Home proposal did not proceed, work progressed on conversion of property to Group Home residential accommodation.

• Business Case for Small Steps approved.

PART

ONE

page 16.

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PART

ONE



TREND09/10

TREND10/11

TREND11/12

COMMENTS

8. To achieve exemplary corporate governance including risk management.

> Quality Accreditation and Policy Registry.

> Risk Identification and Mitigation.

> OH&S Compliance.

> Capital/Asset Management.

> KPI Reporting.

> Financial Compliance.

• Accredited before 2012 by an approved QA assessment organisation.

• Risk Management. • Compliance with Regulatory Rules.

• Asset Management Plans for all properties, provisions and reserves.

• Organisational performance measures in place.

• Unqualified Audit Certificate together with Accepted Agency Acquittals.

• Achieved full QA accreditation.

• Yes – being developed.

• Yes – Revised Inventory Management and Security system.

• Introduced as part of financial reporting improvement.

• Being developed.

• In place.

9. To have empowered, professional and competent staff who meet the needs of the Mission and particularly its clients and stakeholders.

> Staffing.

> Volunteers.

> Training & Development.

> Leadership.

• All HCM activities with respect to staff and volunteers documented with supporting PD’s.

• Staff have performance reviews and personal development plans including client and stakeholder participation.

• Volunteer Recruitment, Training and Management.

• Knowledge, skills and qualifications of staff relevant to position.

• Appropriate and activeleadership working on“Whole of Mission” basis.

• Achieved.

• Completed.

• Completed.

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PART

ONE

PART

ONE

HCM2008

HCM2009

HCM2010-11

HCM2012-13

Increasing

Productivity Per UnitI

NCR E A

S I N G

1.4

1.3

1.2

1.1

1.0

Effectiveness of strategic decision

making

- Annual budgets

- Functional focus

- Multi year budgets

- Gap analysis

- ‘Static’ allocation of resources

- Situation analysis and competitive assesments

- Evaluation of strategic options

- Dynamic allocation of resources

- Well defined strategic management and framework- Strategically focused organisation

- Widespread strategic thinking capacity

Evolution of Strategic Management Improvement - Decision Making - Productivity

- Reinforcing management values and processes

- Innovation of knowledge and competencies

Phase 1FinancialPlanning

Meet Budget

Individuals

Phase 2Forecast-based

Planning

Predict the Future

Individuals withinhierarchical structure

Phase 3Externally-oriented

Planning

Think Strategically

Outcome focussedgroups

Phase 4Strategic

Management

Create the Future

Whole oforganisational teams

WORKING AS

BOARD’S ASSESSMENT OF OPERATIONAL MANAGEMENT PERFORMANCE

page 18.

PART

ONE

MANAGEMENT DIAGNOSTIC – DOES THE CORPORATE PLAN (FUTURE DIRECTIONS STATEMENT) 2009-2013 MEET HCM NEEDS?

Organisational Issues Is it in place – 30/6/12• The HCM vision and corporate values statement. Yes• The HCM organisational and decision making structures. Yes• The HCM client and stakeholder relationship and communication strategy. Yes• A financial and investment strategy for a sustainable and viable HCM future. Yes• HCM key performance indicators and critical success factors. Yes • Policies on social responsibility. (being developed)

Human Resource Issues • Position descriptions. Yes• Education, training and leadership development. Yes• Single Enterprise Staffing Policy/Agreement and HR Manual. (being developed)• Strategies for staff recruitment and retention. Yes• Performance review process. Yes • Retention of intellectual capital and corporate history. Yes

Workflow and Process Issues• Process mapping for key work processes and workflows. (Well in progress)• Whole of organisation information flows. Yes• Communication strategy, systems and channels. Yes• Technology systems strategy. Yes

Culture Alignment• Elevates positive emotions of hope, confidence and motivation. Yes• Increases creativity, better decision making and collective capacity. Yes• Reduces negative impacts and makes irrelevant the residual of a negative past. Yes• Empowers all staff, clients and stakeholders to take responsibility. for the future rather than just follow directions. Yes

page 19.


HOBART CITY MISSION ORGANISATIONAL STRUCTURE AND OPERATIONAL REPORTS

THE HCM MANAGEMENT FRAMEWORK

The Constitution of the Hobart City Mission Inc makes clear the relationship that is to exist between the Mission Board of Management and the Mission Administration and Operations. Pursuant to the Constitution, the Board employs a Chief Executive Officer (CEO) who is responsible for the general administration and management of the Mission. Generally the CEO is also the Secretary to the Board and the Mission’s Public Officer. The CEO is assisted in the management of the Mission’s Operations by a Senior Management Team (SMT) comprising the CEO and each of the four Business Unit Managers. The SMT operates on a “whole of business” approach.

The Vision of Management is to enable the Hobart City Mission Inc. to achieve its Corporate Objective of improving the life of those in need or marginalised through:-

• Quality leadership• Prudent management of the Mission’s assets, investments and properties.• Providing appropriate direction and supervision over Mission operations and resources.

The business objectives of the CEO (and SMT) are to be responsible for:-

• Co-ordinating the analysis of financial, investment and policy information and preparing financial and investment reports that satisfy the Mission’s financial investment and property management needs.• Ensure that the all the leadership activities of the Mission are undertaken on a Whole of Mission approach with the SMT taking collective responsibility for the performance and success of the Mission.• Maximising the acquisition and distribution of Government funds, grants, bequests, donations and returns from other philanthropic activities.• Ensuring that the Mission operates on a viable and sustainable financial basis and that all operations are undertaken in an efficient, effective and economic manner.• Providing strategic leadership through appropriate corporate strategies and business plans and managing the implementation of new service delivery programs and change management initiatives.• Ensuring compliance of the Mission with all regulatory and industry requirements and quality assurance frameworks.

RAMBLINGS FROM THE CEO’S DESK

My role as CEO is to manage the day-to-day operations of the Mission and to implement the strategic framework, as determined by the Board. As CEO I have responsibility for working closely with the Board to develop and implement strategies, policies and decisions in order to meet key challenges. As the CEO, I attend all meetings of the Board and Committees of the Board and represent the HCM Board within the Organisational Structure.

After 4 ½ years of a 5 year contract, is it all going to plan? My plan at the beginning was:-

• Year One - Get to know and understand the Mission and the Community sector generally; review the Corporate Governance from top to bottom; and undertake the research to define the Mission’s niche market position and present a draft Corporate Plan (Future Directions Statement) to the Board. Was this done/achieved? – Yes

• Year Two – Once the Board adopted its Corporate Plan, to transition the HCM Organisation with an eye on the future; to find the right people to act as custodians of the Mission’s future; and to commence the implementation of the Mission’s push to be an efficient, effective and economically sustainable organisation. Was this done/achieved? – Yes

• Years Three and Four – The thinking and designing is over; it’s time to drive the organisation toward the achievement of its Corporate Plan. Was this done and achieved? – Yes

• Year Five – To review and polish off the work done and to attend to issues still unfinished; most importantly to start gathering the research for the next Corporate Plan. Is this happening – Yes.

Garry FletcherCHIEF EXECUTIVE OFFICE

Speaking of organisational design, the current HCM Organisational Structure is as follows:-

PART TWO // THE ORGANISATION

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DISABILITY, FAMILY AND COMMUNITY SUPPORT SERVICE

The Hobart City Mission Disability, Family and Community Support Service in total operates under 7 contracts with DHHS, Gateway and FaHCSIA. There is 1 Manager, 2 Coordinators, 1 Consultant (Clinical Counselling) 1 Senior Practitioner, 2 House Managers, 34 Case Managers/Support Workers, 1 Administration Officer and 1 Volunteer. The Unit also regularly supports University students undergoing their placements for Social Work.

• In 2002 Hobart City Mission was offered a complex in South Hobart, the complex supports 10 single men over the age of 55 yrs who were identified as being homeless or at risk of homelessness. A support worker lives on site with additional case management available when required. 2011 – 2012 has seen no changes in resident accommodation.

• Hobart City Mission currently has 9 Transitional Homes and 4 Community Homes; this program has been running since 2001. The homes are for women and children escaping Family Violence transitioning out of Shelters. In addition to the provision of transitional housing this program also provides case management focused on supporting woman to secure appropriate stable accommodation. 2011- 2012 saw 23 referrals made from Shelters with an additional 15 direct requests from families for assistance who received referrals to appropriate services.

• In 2009 Hobart City Mission became Alliance partners with Baptcare and Mission Australia in the Integrated Family Support Service (IFSS) program. This service offers practical parenting assistance and strategies, casework and case management services. The IFSS support service for eligible families with children 0 – 18yrs of age. Hobart City Mission IFSS program provide families with a tailored approach to meeting individual and family needs. IFSS workers provide a holistic range of case management services for children, young people and families. 2011 – 2012 saw 43 families refereed to HCM IFSS program.

• The Hobart City Mission Emergency Relief program has been operating since inception and is seen as a core program for families/singles to overcome short term crisis situations. Through financial and or material aid, assistance can be provided for food, transport, medication, clothing, bedding and essential services such as telecommunications and electricity (Aurora). The staff within the ER program had been extremely busy with appointments and for the last financial year 3320 appointments for assistance was made.

• The Hobart City Mission “ Identified Vulnerable Groups” program operates on a case management model and is based on internal referrals (Emergency Relief Clients) who require longer term assistance with: financial literacy, housing, mental health, child support, disability, gambling, homelessness, alcohol/drug, family violence, government financial assistance payments, utilities, managing credit debt, inadequate finances, and budgeting. During the year the IVG program progressed well with 69 clients attesting 314 case work sessions.

• Hobart City Mission Family and Community Support Service Unit undertakes the Personal and Family Counselling program and has been doing so since 1998. This service can either be delivered at one of our offices and or home visits are available if and when required. HCM’s Personal and family counselling operates two days per week with 140 community members receiving assistance.


• Hobart City Mission is known as a specialist provider of services in the disability field and has a long history of working with people who have a disability through its 4 group homes and Individual Support Program (ISP). Our existing Group Homes supported accommodation service provides 24 hour on site support in a safe and comfortable environment with a home-like atmosphere. Hobart City Mission ISP provides assistance with, but not limited to, coordination and transition planning, personal care and support to complete everyday tasks, support to participate in a leisure activity or pre-vocational courses, respite, equipment, home modifications, community access (day support) and/or, other services or goods required by a person to meet disability related need. Our ISP program progressed well with the organisation working with 3 clients, Group Homes was sad to see one residents move from one of our properties into a nursing home due to ill health. The placement was filled quickly and the new resident was accepted by the current residents into the home.

EXCITING NEWS FOR 2012-13

Small Steps Program

The model will provide safe, secure accommodation with around the clock support for young women aged less than 25 years with infants. As well as accommodation, the young women will be provided with onsite education and understanding of child development and the practical application of parenting skills to successfully and independently transition into the community with improved levels of self-confidence and employability.

The philosophy of this program is not to have constraints but to be able to cater to the individual needs identified for each resident. As the program will not be primarily funded by any one funding body there will be no restrictions imposed regarding type of service provision. This will enable the program to stay true to purpose and provide the support and services required by each individual resident.

The model is aimed towards young women up to the age of 25 with infants and/or young children (5 years and under) who are considered to be at risk of homelessness and/or having their child removed into State Care due to a lack of appropriate accommodation and support.

Haig Street Development

It is proposed that Hobart City Mission redevelop the church that currently occupies the Haig St site into a 7 bedroom home that would have the capacity to accommodate 5 residents and 2 staff (on sleepover shift). It is also proposed to build a second group home on the site which would be a 5 bedroom home that would accommodate 4 residents and 1 staff (on sleep over shift). Both buildings are significantly larger than the Mercer St and Atherton Ave properties and have been designed to maximise internal space, this will easily accommodate 2 staff on day shift (i.e. actively supporting clients rather than sleeping over), the issue of overcrowding with 2 staff was highlighted in the DAAT report. Both buildings would be purpose built to accommodate people with disabilities and would address the limitations of the current Atherton Ave and Mercer St properties as noted in the DAAT report. Following is a summary of specialised equipment/modifications that will be built into the houses: A lift in each house will provide access to second floor rooms (designs with two levels are unavoidable given the slope of the site);

• Multiple living spaces to allow residents to entertain family and friends is a more private space and to allow separation of residents during incidents; • Use of a robust internal lining;• Strengthening ceiling joists to enable the installation (at a future date) for ceiling tracking and hoists - all bedrooms and hallways to the bathrooms;• future proofing the bathrooms, that is having the space and plumbing in the wall cavity for the installation of a high-lo bath should residents have assisted bathing needs in the future;• Installation of thermal mixing valves to regulate hot water temperature for the safety of the residents; minimum of 6mm laminated glass to all windows to mitigate unavoidable resident behaviours;• Oversized doorways - (minimum 860mm) which is over DS access requirements to ensure they accommodate large electric wheelchairs;• Also strengthened doorframes (concealed metal) to take the inevitable knocks;• Outward opening doors to toilet/bathrooms for safety reasons so the door can be removed from the outside if required;• Use of fixtures throughout which can be operated by people who may have dexterity issues; • locked storage/cupboards for chemicals and medications in the laundry and kitchen/staff area; • Adequate heating/cooling throughout the house as some people with disabilities are not able to regulate their own body temperatures (especially those with spinal injuries);• Larger kitchen for greater use by the residents for cooking;• Open plan design for staff to have greater line of sight of residents;• Intercoms between ground floor and first floor for safety;• Level access to the house.

Business Objectives

The Disability, Family and Community Support Service Objectives are:-• To provide a best practice service to our client base, in order to empower clients with dignity and self reliance; and • To maintain current staffing and expand the unit with the development of additional programs; and• To be accountably to the Board and other Stakeholders through transparent processes particularly in relation to our financial operations; and• To develop a greater presence and knowledge of our services within the broader community; and • To develop critical mass in all programs.

Disability, Family and Community Support Service will contribute to obtaining these objectives by:-• Active tracking of finances utilising budget to actuals provided by the Manager, Corporate Services on a monthly basis; and• Maintain a collaborative relationship with the relevant education Institute and continue to provide student placements; and• Maintain current volunteers; and• Active tracking of finances utilising budget to actuals provided by the SMA on a monthly basis; and• Meet KPI objectives as stated within the funding agreement with Gateway; and• Maintain a holistic approach to clients by utilising all programs within Hobart City Mission; and


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• Maintain relationships with all family support agencies including Child Protection Services by attending all relevant forums and meetings; and• Set and maintain KPI’s for programs as set by funding body; and• To work in consultancy utilising extensive experience and qualifications to guide clients through the well established continuity of programs, and professional people involved in them; and• To maintain the high credible standard of staff members that have come together over the past two years, existing programs will continue to be successful and therefore continue to be supported by Government input; and• To maintain positive outcomes for clients that establishes respect from other organisations, and gives us a greater presence, extending knowledge of our successful services to the broader community; and• Maintain a working relationship with relevant funding bodies by participating in forums and meetings relating to Disability Services; and• Maintain and assist residents to gain employment both paid and volunteer work within Hobart City Mission and the wider community; and• Maintain a resident focus environment by supporting residents to maintain their independence and quality of life.

Disability, Family and Community Support Service Management Team (Comprised of: Manager DFaCSS, Coordinator FaCSS, Senior Practitioner FaCSS and Coordinator Group Homes)

The Management team will actively seek out funding opportunities and apply for funding submissions in line with Hobart City Mission Future Directions Statement; and The team will actively seek out and engage in networking opportunities to ensure a wider knowledge and understandings of HCM’s services and capacity within the broader community.

Annette Clark Manager - Disability, Family and Community Support Services

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The Mission underwent a restructure in the 2011/12 year that resulted in the creation of two new units, Corporate Services and Business Development. These units have replaced the previous Corporate Operations Unit. The Business Development Unit encompasses the Marketing and Events team and Pastoral and Community Engagement.

Business Development Unit Objectives

• Identify and facilitate new business opportunities within the Mission’s niche market through collaborative work with other areas of the Mission;• Increase the image and profile of Hobart City Mission within the community by developing and implementing a marketing strategy;• Generate philanthropic income through quality relationship management of stakeholders and the coordinating of events, appeals and bequests;• Provide pastoral care to those in need or marginalised irrespective of denomination, race or social status. In 2011/2012:-

Business Case Development Projects

Small Steps The Small Steps project began in early 2011 with the idea to develop a residential program to support young mums at risk of homelessness or having their baby taken into State Care. Over the last 12 months the project has gained significant momentum with the identification of an appropriate property at 17 Stoke St and development of the program material. Planning approval has been granted and the Mission Board are now making the final decision about the financial viability of purchasing the property. In order for the project to come to fruition $600,000 needs to be raised through philanthropic donations and grants. The fundraising for the project is being driven by the Business Development Unit who have finalised the infrastructure (website, brochures, identification of potential donors etc) and are now actively working on securing donations and grants. At the time of writing $62,380 has been raised for the building redevelopment with discussions regarding several other donations in progress. $60,000 of this has been generously committed from the Motors Foundation .We have also been very fortunate to have commitment from a donor to fund the interest on $0.5m of the loan required to purchase the property for a period of up to 10 years. It is donors such as this that keep the Mission going and in a position to develop such fantastic programs as Small Steps that has the potential to make a significant difference to some of Tasmania’s young mum’s and their babies.

Hobart City Mission WebsiteIn the 21st Century it is critical for any organisation such as the Mission to have a website that enables us to communicate information to the community as well as out clients and stakeholders. Over the last few years the Mission’s website has become out dated and in desperate need of re-development. The re-development of the website is now well underway with a launch planned for November, 2012.

Marketing & Events:For most of the 2011/2012 year staff movement resulted in this area being significantly understaffed, however regardless of this our regular appeals and events were held, again with the partnership of the Motors Foundation and Optomeyes and some great achievements were made with a gross return of $208,287. Following is a summary of fundraising contributions;

BUSINESS DEVELOPMENT UNIT


Also during the year, the Mission received bequests and major sponsorship contributions from a number of people and organisations. Where bequests are more than $10,000, the funds are set aside, invested with the investment returns, plus some of the capital directed towards Mission programs identified, having regard to the instructions/wishes of the deceased person’s estate. This year the following Bequests/Major Sponsorships were received;

EVENT/FUNCTION GROSS INCOME

Winter Appeal $55,068

Christmas Appeal $48,387

Optomeyes Art Exhibition 2011 $22,765

Mission Membership $620

Mission Mate $8879

Other Fundraising $10357

SOURCE OF BEQUEST/SPONSORSHIP GROSS AMOUNT PROGRAM

Betty Mathers Estate $289,500 Mission Capital Fund

Allport Bequest $13,000 General Mission Support

Rauner Estate $7,240 Mission Capital Fund

Lesley Johnstone Estate $12,162 Mission Capital Fund

Joan McGinniss Estate $5,000 Mission Capital Fund

June N Cumbrae-Stewart Estate $1,000 Mission Capital Fund

Heatherbel Mcfarlane Estate $2,263 Mission Capital Fund

Optomeyes $4,000 Optomeyes Art Exhibition

Golden Key Club $500 Optomeyes Art Exhibition

ABC Giving Tree $18,000 Christmas Appeal

P Blyth $4,980 Donation

General Donations $5,387 Donation

Leith Hope Memorial Foundation $10,000 Winter Appeal

Motors Foundation $4,844 Winter Appeal

J Burleigh $2,000 Winter Appeal

C Bamford $3,000 Winter Appeal

J Walker $7,500 Winter Appeal

M Fenton $2,000 Winter Appeal

With the creation of the new Business Development Unit came the creation of the new Marketing and Events team. Belinda Jefferies joined the Mission as Marketing and Events Coordinator and Sharn Hitchens as Marketing & Events Officer. Since the creation of this team a significant amount of work has been done around reviewing the Mission’s fundraising activities with a view to increasing the funds raised in an efficient manner to enable the Mission to assist those in need in our community.

Pastoral and Community Engagement

Pastoral Care is a service that the Mission has been providing to the community, in varied forms since its establishment in 1852. In the last 12 months the Mission continued to provide chaplaincy services at Claremont College and Oatlands District High School, this service will continue in the coming year. Chaplaincy services are also offered at the Hobart Reception Centre (previously the Hobart Remand Centre) and Risdon Prison, this is an ongoing program in partnership with Prison Fellowship Tasmania.

In addition to Chaplaincy services the Mission also provides a Pastoral Care service to the Hobart Dogs Home, this has been a successful service for some years and is planned to continue in the coming year.

Plans for the coming year for this area are to continue the above services as well as to review and develop Mission Membership and to continue to strengthen relationships with our stakeholders, particularly our Christian partners.

Michelle FolderManager - Business Development


Introduction

As a consequence of the external review of the Mission’s financial operations which started in the 2010-11 financial year and concluded in the 2011-12 financial year, there was change in the organisational structure of the Mission implemented during the year. The Corporate Operations Business Unit divided into to two separate Business Units as follows:-

• The Corporate Services Business Unit; and• The Business Development Business Unit.

The purpose of the Corporate Services Business Unit is to enable the Hobart City Mission Inc. achieve its Corporate Vision on improving the life of those in need or marginalised through the efficient, effective, economic and quality management of the following Mission activities:-

• Financial Management and Accounting including investment and property/capital asset management.• Mission Infrastructure – People, Places and Systems including Information and Communication Technologies (ICT).• Human Resources and Payroll Services• Governance and Risk Management• HCM Board support services including administration and reception.

Business Objectives

The Objectives of the Corporate Services Business Unit is to support and enhance the Hobart City Mission’s presence and reputation in the sector and to the current and future associations and stakeholders. The scope and key activities and responsibilities of the Corporate Services Business Unit is:-

• Mission Reception and Administration As the Administration staff are the point of first contact to the client and the community, their professionalism must be second to none.• Mission Infrastructure Corporate Services has the overall responsibility for the implementation, management and maintenance required to support the whole of the Mission, undertaking and providing the support mechanism throughout.• Finance Within the finance arena, Corporate Services has implemented and will continue to review these processes and additional new systems which will streamline efficiencies and deliver accurate reports of all variances to the relevant bodies.• Human Resources To establish a central data base with templates in place for all variances of HR. To reduce risk and down time, by implementing programs to assist with employees morale and other work issues. Initiate good communication relations with all personnel throughout the Mission, including the volunteer capacity.

CORPORATE SERVICES


• Risk Co-ordinate and implement with other personnel assistance a risk register which will assist the Mission in monitoring its level of risk of sustainability, in conjunction not only in the financial area, but the operational and projected programs for the future To establish a correct and accurate Asset registrar and contingency plans which will cover any incidents, highlight potential crises situations and manage crises events should they occur. • Governance To ensure that the Mission meets all its obligations internally and externally in regard to:-

- Funding;- OHS; - Staff Obligations;- Clients;- Prospective Clients;- Financial obligation and legislation is adhered to; and- Internal and External Audit processes are in place.

• Property/Assets To implement a Property and Asset Register and to ensure that all insurances, building codes, legislation, Occupational, Health and Safety legislation and depreciation schedule including a contingency process.

• Investments/Trusts Establish a transparent and clearly identified tracking process for the current and future investments/bequests of the Mission. To make sound investment decisions that will benefit and not detract from the Mission, always liaising with the CEO.

Year Under Review

The Corporate Services Business Unit is the “nuts and bolts” of the Hobart City Mission with responsibility for supporting the Mission through the quality management of its infrastructure.

(ICT Infrastructure and Asset Management)

Over the past 3 years, the Mission has invested heavily in upgrading its infrastructure to a satisfactory standard. This has involved:-

• Renovations to all the Mission’s property holdings either to satisfy OH & S concerns and standards or to improve the utilisation of properties in terms of rental income;• Ensuring that the Mission improved its productivity whilst at the same time minimising its management costs through the appropriate application of information and communication technology.

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page 32.

This investment in infrastructure continued through the whole of the financial year with the outcome that the Mission staff and volunteers are supported by an appropriate work environment and technologies.

(Governance, Quality Assurance and Risk Management)

The Hobart City Mission is committed to continuous quality improvement in all of its business activities.

In 2008, the Hobart City Mission began an accreditation journey with a national group called Quality Services Management (QMS). This journey reached a conclusion during 2011-12 with Mission achieving full QA Accreditation involving the following processes:-

• Internal Review – completion of a Quality Journal using a cross-disciplinary collaborative process of evidence gathering.• External Review – completion of a review by external reviewers under the auspice of one of QIC’s licensed providers.• Feedback – feedback to be provided by external reviewing party, with the opportunity for discussion of the external review findings; and• Taking Action – developing, implementing and reporting of progress against a quality plan arising from the external review findings.

Throughout the accreditation process the Hobart City Mission achieved a high measure of stakeholder engagement with the Mission being included in the QIC 2010 Annual Report as an example of innovative stakeholder engagement.

(Financial Management and Reporting)

During the course of the 2011-12 financial year, the external review of the Mission’s financial operation were concluded and implemented.

Major issues attended to in the implementation of the financial reform measures included:-• MYOB Accounting System – A new and contemporary Chart of Accounts was implemented together with improved utilisation and training. • Documentation – in order to clarify processes and ensure appropriate succession planning and risk management, full documentation of accounting and financial procedures was undertaken.• Resourcing – resourcing levels were reviewed and the optimal organisational structure was implemented. Position descriptions were revised for all corporate services roles.

(Risk Identification and Mitigation)

A major initiative to occur during the 2011-12 financial year was addressing the Mission’s need for a comprehensive Risk Management Strategy. With the valuable assistance on a pro bono basis of an independent risk consultant, John Minchin, the Mission made substantial progress during the year. This entailed:-

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• Formal adoption by the HCM Board of Risk Management Policy supported by a Risk evaluation framework and procedures handbook;• Establishment of risk identification team representing staff from across the whole of the Mission to identify areas of risk and to prepare an initial Risk Register. Numerous half day workshops were utilised in order to undertake this identification and classification of known risks.• The compilation of a Risk Register for submission to the CIG Committee of the HCM Board. That Committee will review the Register each time it holds a meeting.

Summary of Year

In what has been a most difficult of years in terms of the amount of work undertaken complicated by significant change and innovation within the workplace, the new Corporate Services Team has achieved much and performed with distinction. Whilst challenges still exist, there is much pride in what has been achieved to date and much confidence in the Team’s ability to add value to the Mission well into the future.

Jenny SloaneManager - Corporate Services


The past 12 months has been an exciting year for retail and we are well on the way to achieving the magical half million dollar annual turnover figure in this coming financial year. We are continuing to cement our place as a “recycled” goods retailer with quality, affordable goods for sale in our modern, clean stores with well trained, friendly staff. All areas are consistently receiving good reviews and comments from our customers by way of the “comments” boxes which are placed in each outlet.

Total turnover for all retail stores was $464,679.60

Breakdown by store:Moonah Clothing and Furniture Stores-$222,705.70 ( LY $211,833.55 )Warrane-$68,503.65 ( LY $86,041.05 )Goodwood-$39,742.05 ( LY $27,382.80 )Partridge Nest-$33,152.60 ( LY $32,226.65 )Barrack Cottage-$16,153.80 ( LY $14,122.25 )Huonville-$44,580.55 ( LY $38,258.80 )Claremont-$26,477.55 ( LY $1,777.05 opened June 2011 )Sorell-$13,363.70 opened February 2012

Retail staff and volunteers have created a formidable team which enables our 9 stores, Transport and Sorting to operate 5 days a week, with limited supervision from myself and no major issues to report.

Retail now has over 110 volunteers working in all areas of retail-shops, sorting and transport-assisting the five full time paid staff.

The Volunteer Management Review has had a huge impact on our retail operations, and how we manage our volunteers. This Review, under the guidance of Volunteer Coordinator Sheralyn Jackson, has ensured that we now have policies and procedures in place for volunteers. The Review has also thrust Hobart City Mission into the forefront of Volunteer Management, being a contender for the State Community Achievement Volunteer Management Awards last year, and winning the Hobart City Council Award for Volunteer Management this year.

In December 2011 our annual Volunteer Thankyou event took a new turn in the guise of an evening dinner, cooked and served by HCM staff and Ceo. This was greatly appreciated by our volunteers. At this Thankyou Dinner, we inaugurated Volunteer Awards with associated with accommodation vouchers as prizes. The winners of these awards were nominated by fellow volunteers and HCM staff.

RETAIL REPORT

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The coming 12 months for retail will see a consolidating period before we look at opening our 10th store, continuing to improve our service to our customers, continuing improving our volunteer management and training our staff and volunteers. The next 12 months will also see a greater emphasis on OH&S awareness throughout retail and the Mission.

I would like to close by personally thanking Retail Staff - David, Sonny, Loraine, Sheralyn and Paul - and our wonderful volunteers for making retail work and for being committed to continually improving how we do what we do.

Andrew GreenhamRetail Manager

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THE HCM FINANCIAL REPORTS

In the opinion of The Hobart City Mission Inc. (HCM) Board of Management, as the body corporate responsible for the administration of the Mission established, constituted and funded pursuant to the Associations Incorporation Act 1964:-

• The accompanying financial statements of the Mission are a special purpose financial report properly drawn up so as to present fairly the financial position of the Mission as at 30 June 2012 and the results of its operations for the year ending on that date in accordance with the Associations Incorporation Act 1964, Australian Accounting Standards, where applicable and other mandatory professional requirements.• The Mission has been operating in accordance with the provisions of the Rules of Association and Constitution of the Mission as approved pursuant to the Associations Incorporation Act 1964.

HCM is funded from a number of sources including government grants, subsidies, contributions, donations and investment income. Other sources of income include resident fees, client fees, fundraising appeals, trusts and bequests which are also vital to the work of the Mission. HCM supports various programs that receive government grants by way of extra contributions as well as self funding a number of important pilot programs.

HCM appreciates the generous financial and in-kind support of government, philanthropic trusts, community groups, the corporate sector, churches and individuals which make it possible to run and support many services and programs.

The Board and Management of HCM continue to ensure that long term investment strategies, planning and budgeting processes are in place to ensure the ongoing viability of the many services it provides which enable HCM to meet its objectives. The Board and Management regularly review programs and services to ensure that people in need receive the best support possible. HCM supporters can be confident that the resources available are properly and efficiently managed.

STATEMENT BY OFFICERS

Jenny SloaneMANAGER - CORPORATE SERVICES15th October 2012

Garry FletcherCEO AND PUBLIC OFFICER15th October 2012

Barry NeilsenPRESIDENT15th October 2012

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PART THREE // THE FINANCIALS

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Notes to and forming part of the accounts are referenced to the Program Based Statement ofComprehensive Income contained herein.

FOR YEAR ENDED 30 JUNE 2011

Notes 30 June 2011 30 June 2010

$ $ $ $ $ $

Income Expenditure Net Income Expenditure Net

BUSINESS UNITS 1t

Family & Community Services

Group Homes 1q 1,514,432 1,548,650 1,196,379 1,332,732

Personal & Family Care 1q 91,899 98,113 132,387 246,385

Life Skills for Children 1q 0 0 39,592 44,181

Integrated Family Support Service 1q,7 421,254 395,734 340,975 335,488

Supported Accommodation Assistance Program 1q, 1b(iii) 271,805 209,086 296,751 271,070

Community Housing - Mountainview 1b(iii) 49,250 27,282 68,190 44,117

Identified Vulnerable Groups 1q 55,050 41,034 0 0

Emergency Relief 1q, 7 375,951 438,828 337,950 339,049

2,779,642 2,758,727 20,915 2,412,225 2,613,024 -200,798

Outreach & Development

Camps 1q, 7 1,027 1,027 7,166 7,166

Befrienders Program 52 209 59,912 22,629

Prison 0 65 0 1,719

School Chaplaincy 1q 62,019 62,019 38,504 39,655

Pastoral & Governance 7 18,740 62,781 0 0

Fundraising 1u,7 150,422 64,382 180,102 99,586

Bequests & Legacies 1u,7 21,346 0 21,253 0

Donations 1u,7 41,947 0 37,974 0

Development & Management 605 178,623 15,838 209,783

296,157 369,106 -72,949 360,748 380,539 -19,791

Retail 1r,8

Bargain Warehouse Moonah 217,955 44,596 158,140 106,503

Eastern Shore OpportunityShop 86,923 53,516 83,832 47,828

Barrack Cottage OpportunityShop 14,285 1,536 15,212 4,654

Partridge Nest OpportunityShop 32,598 2,488 34,408 7,641

Goodwood OpportunityShop 28,314 12,181 27,570 13,415

Huonville OpportunityShop 38,332 12,724 22,237 13,014

Claremont Opportunity Shop 1,696 3,953

Waste Rags 1,823 0 1,793 738

Management incl Donations & Auction Sales 17,142 406,198 4,541 235,179

439,069 537,192 -98,123 347,733 428,972 -81,239

Management & Administration

Cost Recoveries From Other Programs - Administration 1b(ii),1p 507,650 0 401,670 0

Cost Recoveries From Other Programs - Property Usage 1b(iv),1p 113,460 0 0 0

Activities 1b(iii) 251,592 0 101,462 629,315

Non-operating Items 1,294,415 0 92,470 0

2,167,117 910,276 1,256,841 595,602 629,315 -33,713

CURRENT YEAR SURPLUS/(-)DEFICIT 1q 1,106,685 -335,541

THE HOBART CITY MISSION INC. PROGRAM BASED STATEMENT OF COMPREHENSIVE INCOME

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THE HOBART CITY MISSION INC. STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2011

Notes 30-Jun-11 30-Jun-10

ASSETS $ $

CURRENT ASSETS

Bank Accounts & Unbanked Collections 5 25,698 49,065

Sundry Debtors 59,537 38,555

Prepayments 58,654 64,167

Cash Floats 5 2,440 2,190

Inventory of Second Hand Goods 1i 41,351 63,691

Investments 5 852,920 260,134

Total Current Assets 1,040,600 477,803

NON CURRENT ASSETS

Mission Premises 1b(i),1l, 1m, 2 & 4 2,829,521 3,389,210

Program Assets 1l, 1m, 2 & 4 242,845 194,695

Motor Vehicles 1l, 1m, 2 & 4 34,704 55,721

Investments 5 70,000 2,474

Total Non Current Assets 3,177,070 3,642,100

TOTAL ASSETS 4,217,670 4,119,902

LIABILITIES

CURRENT LIABILITIES

Taxation Liability 25,831 8,437

Bank Overdraft 22 253,635

Employee Entitlements 1b(v), 1o, 3 315,861 303,850

Trust Funds 1u & 7 408,486 933,127

Other 1q & 6 227,938 197,009

Total Current Liabilities 978,137 1,696,058

NON CURRENT LIABILITIES

Employee Entitlements 3 113,809 99,929

Loans 2c 0 304,876

Total Non Current Liabilities 113,809 404,805

TOTAL LIABILITIES 1,091,946 2,100,863

NET ASSETS 3,125,724 2,019,039


THE HOBART CITY MISSION INC. STATEMENT OF CHANGES IN EQUITY

AS AT 30 JUNE 2011

Notes 30-Jun-11 30-Jun-10

Accumulated Funds Brought Forward -17,259 318,282

Current Surplus/(-)Deficit 1q 1,106,685 -335,541

Accumulated Funds Carried Forward 1,089,426 -17,259

Redevelopment Reserve 160,620 160,620

Revaluation Reserve Barrack & Goulburn Sts 1b(i),1l, 2 & 4 1,318,818 1,318,818

Revaluation Reserve Main Road Moonah 1b(i),1l, 2 & 4 292,860 292,860

Revaluation Reserve Haig St Lenah Valley 1b(i),1l, 2 & 4 264,000 264,000

TOTAL EQUITY 3,125,724 2,019,039

Notes to and forming part of the accounts are referenced to the Program Based Statement of Comprehensive Income contained herein.

1. SUMMARY OF ACCOUNTING POLICIES

a) Basis of AccountingThe Hobart City Mission Inc is a body corporate incorporated under the Associations Incorporation Act 1964. In the event of The Hobart City Mission Inc being wound up, the liability of members is determined by its constitution. The financial statements, comprising a statement by the officers, two Statements of Comprehensive Income, one for the Mission’s overall operations and the other for its individual programs together with a Statement of Financial Position, are a special purpose financial report that has been prepared in accordance with Australian Accounting Standards and the requirements of the Associations Incorporations Act 1964. The Directors have decided that these Statements are appropriate to meet the needs of members and grant accountability to donor organisations. The accounting policies based on accrual accounting principles, have been consistently applied and, except where there is a change in accounting policy, are consistent with those of the previous year. Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures, unless otherwise stated.

b) Accounting Changes(i) Real Estate values are shown in the Statement of Financial Position as Mission Premises. At cost values previously reported in the Statement of Financial Position are significantly different to market values. The Mission Premises balance had been increased on 30 June 2009 to reflect the most recently received market valuation, with details for each property recorded in Note 2 and in the Statement of Changes In Equity which clearly indicate the revaluation amounts for each property. From 1 July 2009, depreciation on buildings is no longer charged. In January 2011, land and buildings representing part of the Barrack & Goulburn Streets property were sold to assist in the construction of the Affordable Housing complex. The profit derived from this sale has been estimated using the Valuer-General’s assessment of the value of the property determined in February 2009. The profit shown in the accounts is the difference between the proceeds received and the apportioned market value of the land and buildings sold as recorded in the Valuer-General’s assessment. New titles and revaluations are yet to be issued in respect of the land and buildings retained.(ii) The basis of allocation of administration costs is a charge of 15% on program income, with adjustments where grant donor arrangements require otherwise.(iii) Mountainview and the Supported Accomodation properties had property management functions transferred to Management & Administration for the 2010-11 year. Consequently, Mountainview and the Supported Accomodation Assistance Program financial results are compiled differently for the year ended 30 June 2011 in that only net income from property is recognized. In previous years, gross income from property was shown as revenue and expenditure included the costs of holding and maintaining the properties. The 2009-10 figures have not been adjusted for comparative purposes.(iv) A charge to program’s for the rental value of Mission premises occupied for the conduct of those programs has been made for the first time in 2010/11. For the current year, the total charge allocated for this purpose was $113,460.(v) A new provision for maternity/paternity leave has been introduced for 2010/11, but has been rescinded with effect from 30 June 2011.

THE HOBART CITY MISSION INC. NOTES TO AND FORMING PART OF THE ACCOUNTSFor the Year Ended 30 June 2011


The following is a summary of the material accounting policies adopted by The Hobart City Mission Inc in preparing its financial statements.

c) Revenue RecognitionRevenues are recognised at fair value of the consideration received net of the amount of goods and services tax (GST). Capital Grants received and expended on capital goods in a financial year are recognized as revenue in that year. From 1 July 2007, donations in kind are recognised as income (at standard prices) giving rise to a value of inventory held at year end.

d) Interest RevenueInterest revenue is recognized as it accrues.

e) Sale of Non-Current AssetsThe net profits/losses of non-current asset sales are included as revenue at the date control of the asset passes to the buyer. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

f) Income TaxThe Hobart City Mission Inc. is exempt from income tax.

g) Goods and Services TaxRevenues, expenses and assets are recognised net of any amount of goods and services tax (GST). The net amount of GST recoverable from or payable to the Australian Taxation Office is included as a current asset or current liability in the Statement of Financial Position.

h) CashCash is carried at the face value of the amount deposited.

i) InventoriesInventories are carried at the lower of cost or net realisable value, or in the case of donated goods, at a standard price reflective of a fair value for secondhand goods. The principle for setting standard prices is the best estimate for 50% of the expected sale price for the item.

j) Payables (Current Liabilities)Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the organisation. Accounts payable are normally settled within 30 days. The carrying amount of accounts payable approximates net fair value.

k) Interest Bearing LiabilitiesLoans are carried on the Statement of Financial Position at their principal amount. Further information is contained in later notes.

l) Asset AcquisitionAll assets acquired, representing property, plant and equipment are initially recorded at their cost of acquisition. Mission premises have been revalued to reflect market value and the revaluation details are clearly shown in the notes and in the Statement of Changes In Equity.

THE HOBART CITY MISSION INC. NOTES TO AND FORMING PART OF THE ACCOUNTS (CONTINUED)

m) DepreciationThe components of major assets, that have materially different useful lives, are effectively accounted for as separate assets, and are separately depreciated.

All non-current assets have limited useful lives and are depreciated using the straight-line method over their estimated useful lives. Assets are depreciated from the date of acquisition. Depreciation rates and methods are reviewed annually for appropriateness. Plant and equipment purchases over $1,000 are capitalised, assets with a value of $1,000 or less are expensed. All non-current assets have limited useful lives and are depreciated using the straight-line method over their estimated useful lives. Assets are depreciated from the date of acquisition. Depreciation rates and methods are reviewed annually for appropriateness. Plant and equipment purchases over $1,000 are capitalised, assets with a value of $1,000 or less are expensed.

The depreciation rates used for each class of asset are as follows:• Buildings (2% to 30 June 2009) 0% • Furniture & Equipment 7% - 25%• Computer Equipment 33%• Motor Vehicles 15%

n) LeasesThe Hobart City Mission Inc leases several properties from the Government and the private sectors, to run different programs. The tenants are charged a rental where appropriate and the charges are reviewed periodically.

o) Accrued WagesThe Hobart City Mission Inc pays its employees on a fortnightly basis. The amount due for salary and wages between the last payday in June and 30 June 2011 was accrued as a current liability. In 2010/11, an amount has been accrued to cover six days and eight days for shift workers’ entitlements, where two days represent a weekend. A further accrual was necessary for salary increases paid after 30 June 2011 which related to work performed in the 2010/11 financial year.

p) Administration & Overheads CostsDuring 2010/11, as much direct expenditure as could be readily attributed to specific programs was allocated directly to the cost of the program. Most administration and overhead cost cannot be directly allocated. A proportion of the total, based on 15% of the program income (in most cases), has been attributed to the Group Homes program, Personal & Family Care, Life Skills for Children, Integrated Family Support Service, Community Housing (including Mountainview), Supported Accommodation Assistance Program (Nita Bradshaw Houses), Emergency Relief (limited to $6,000 per agreement), Befrienders Program, School Chaplaincy, Outreach & Development, Fundraising, and Retail Operations. Additionally, for the first time in 2010/11, an internal charge to represent the rental value of Mission properties, has been allocated to programs on the basis of the floor space occupied for the purpose of undertaking those programs. The amount charged to specific programs, amounting to $621,110 (Administration $507,650; property use $113,460) (2009/2010 Administration only $401,670), is shown in the Program Based Statement of Comprehensive Income under Administration & Management.



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q) Government and Other GrantsGrant monies have been applied for the purpose for which they were granted. Government grants are recorded as income in the period to which the grants relate. Grants have been received in advance for School Chaplaincies at Claremont College and Oatlands District High School, $11,023, Sunshine Association of Tasmania $1,473 and Integrated Family Support Services, brokerage $1,871, making a total of $12,894 which has been carried forward to the next year.

The SAAP – Transitional Support Service program arrangements require recurrent grants received from DHHS be recognized fully as income in the year in which the grant is received. As the existing program was under-spent by $56,921 in 2010/11, the impact on the net operating deficit for that year is to increase the actual operating deficit by that amount. It is intended that the under-spent funds will be expended prior to the expiry of the current grant deed (31 December 2012). Furthermore, the Australian Government identified Vulnerable Groups program was also under-spent by $14,016 under similar grant recognition requirements. A request is in progress to apply this to the Emergency Relief program which was over-spent during the year. The effect of these two under-expenditures is to increase the actual operating deficit for 2010/11 to $258,667.


2011

2010 TOTAL PROGRAM GRANTS

$ TASMANIAN GOVERNMENT $

1,168,529 Community Integration Program (Group Homes) 1,432,026

340,976 IFSS Partnership 380,827

83,225 CSP - Personal & Family Counselling 85,971

25,000 Premier's Grant – Hobart & Glenorchy Welfare 25,000

232,081 SAAP - Transitional Support Service 239,740

10,441 SAAP - Property Management 10,793

130,668 Emergency Relief - via DEWR 0

0 Tassie Day Volunteers’ BBQ 600

AUSTRALIAN GOVERNMENT

31,172 DEWR - Chaplaincy 55,347

207,282 Emergency Relief – Hobart & Glenorchy 318,996

OTHER GRANTING BODIES

71,570 Tasmanian Community Fund - Warehouse Recycling 0

20,900 Tasmanian Community Fund - Social Inclusion 0

1,000 Honda Foundation 0

0 Sunshine Association of Tasmania 1,027

0 NILS Capital Grant – Eastern Shore office 10,000

2,322,844 Total Grant Funding 2,560,327

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r) Donations of Cash and Other GoodsCash donations are recognised as revenue when they are receipted and recorded in the accounts. Those goods not passed directly to persons in need are sold to the public at large through the opportunity shops and the sales proceeds are recorded as revenues from the operations of the opportunity shops. The opportunity shops are listed as Bargain Warehouse, Barrack Cottage, Eastern Shore Opportunity Shop, Moonah Opportunity Shop, Partridge Nest, Goodwood Opportunity Shop, Huonville Opportunity Shop, Claremont Opportunity Shop and Waste Rags. A new inventory management system for donated goods had been implemented in 2008 such that donations of goods and inventory held at balance date are reported at standard values. From March 2011, the inventory management system was changed from a perpetual inventory method to stock count and valuation at the end of each accounting period. The underlying principle of recognising 50% of the estimated value of inventory at year end remains unchanged.

s) Group HomesThe State Government has provided separate funds to run the Community Integration Program, which are disclosed separately in the financial statements. Some items of equipment originally purchased out of grant monies some years ago have been expensed as the equipment is considered to belong to residents. (This has not occurred in recent years). Residents pay for rental to the State Government for the properties leased to them as their residence and for other outgoings required for their day to day living.

t) Income from InvestmentsThis represents the total income earned on specific purpose and other funds available to maximise returns. Internally this interest is apportioned to various programs and trust funds and is recognised in relevant grant acquittal statements as income, where appropriate. It is included in the individual programs operating income.

u) Trust FundsWhere a bequest or donation has been given for specified purposes, or where the Board of Management specifies a purpose for funds received by The Hobart City Mission Inc, the amount required for expenditure in future periods is carried as a liability shown in the Statement of Financial Position as Trust Funds.

2. ACCOUNTING POLICY – NON-CURRENT ASSETS

Revaluation of Non-Current Assets

The Hobart City Mission Inc applied AASB 1041 Revaluation of Non-Current Assets for the first time from 1 July 2000. The standard required each class of non-current asset to be measured on either the cost or fair value basis. The Hobart City Mission Inc decided to use the cost basis. In 2008/09 the most recently available market valuations had been used to show the Non Current Assets Mission Premises value. The revaluation adjustment required to show this value is shown in the Statement of Changes in Equity. The revaluation adjustments have not been included in the Statements of Comprehensive Income.



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Separate cost values have been identified for land and buildings. Buildings at cost were depreciated each year by 2%, but in view of the revaluation policy, from 1 July 2009, no depreciation is charged.

a) Barrack StreetThe Valuer-General assessed the value of the Barrack Street property in February 2009 at $1.71 million, with land valued at $1 million and buildings at $710,000. This valuation has been used to determine the revaluation amount of $1,318,818 which has been taken to the Statement of Changes in Equity in 2008/09.

During 2010/11, additional capital expenditure of $48,272 ($493,443 in 2009/10) was applied to the Barrack Street buildings.

The Barrack Street property consists of a number of elements. In January 2011, the Goulburn Street residence, car park and sorting room were sold for the purpose of the construction of the Affordable Housing complex. Gross proceeds of $900,000 were received from the sale of these elements. The remaining elements are described as:

• Partridge Nest• Administration building• KT’s Café• Barrack Cottage

b) Lenah Valley CentreDuring 2001/02, the Uniting Church and The Hobart City Mission Inc entered into an arrangement whereby the former Lenah Valley Uniting Church was transferred in trust to The Hobart City Mission Inc at no cost. This was on the understanding that The Hobart City Mission Inc would continue to use the complex for work associated with The Hobart City Mission Inc for at least 20 years. The property cost value arising from this arrangement is zero. Late in 2008/09, improvements were undertaken at a cost of $80,540, during 2009/10 a further $2,913 was spent and $13,294 in 2010/11, all of which has been capitalised. The building costs are not subject to depreciation.

The Valuer-General assessed the value of the Haig Street property in February 2009 at $264,000, with land valued at $170,000 and buildings at $94,000. This valuation has been used to determine the revaluation amount of $264,000 which was taken to the Statement of Changes in Equity in 2008/09.

c) 11-13 Main Road, MoonahIn April 2001, The Hobart City Mission Inc purchased this Moonah property for the purpose of conducting a Bargain Warehouse. An interest free loan of $100,000 for 12 months (subsequently repaid in 2002/03) and an interest only loan of $145,000 from Perpetual Trustees Ltd provided funds for the purchase. The Perpetual Trustees Ltd loan was renewed on 31 July 2007, as a long term loan. A loan of $159,876 was secured in 2007/08 against this property for the purpose of buying property at New Norfolk. The New Norfolk property has since been sold, but the loan was not repaid and remained outstanding. Both loans were repaid on 2 March 2011. Separate cost values have been identified for land and buildings. Buildings at cost were depreciated each year by 2%, but this practice ceased from 1 July 2009. The buildings are now additionally used for Personal and Family Care and Emergency Relief programs.


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In March 2009, a market valuation of the Moonah property was obtained from Saunders & Pitt, independent property valuers and consultants. The market value of the land was assessed as $390,000 and buildings value was $175,000. This valuation has been used to determine the revaluation amount of $292,860 which was taken to the Statement of Changes in Equity in 2008/09.During 2009/10, capital works totaling $256,060 were undertaken. An additional $1,764 was spent during 2010/11. The Tasmanian Community Fund assisted towards these works with grants of $20,900 to renovate the Social Inclusion Unit and $71,570 to upgrade the warehouse facility.

d) Other Non-Current AssetsThese consist of motor vehicles, furniture and equipment and computer equipment and are maintained at cost values less depreciation allowances which are made in accordance with accounting policy in note 1 m.

3. EMPLOYEE ENTITLEMENTS

Annual Leave – The provision for employees’ entitlement to annual leave represents the amount The Hobart City Mission Inc. has a present obligation to pay, resulting from employees’ services up to balance date. The provision is a current liability and has been calculated on current wage and salary rates, including provision for superannuation, workers’ compensation insurance and leave loading obligations.

Long Service Leave – A liability for long service leave exists for all employees who have completed ten years of service, or who retire or resign (under specified circumstances) after seven years.

The provision has been calculated in a conservative manner. The current liability provision consists of entitlements at current wage and salary rates plus superannuation and workers’ compensation for all staff who have reached ten years service. The non-current liability consists of a 100% allowance of entitlements at current wage and salary rates plus superannuation and workers’ compensation for all staff who have reached five years service, but not yet reached 10 years. Additionally, there is an 80% allowance for staff employed between two and five years.

Sick Leave – The provision was previously based on 50% of group home workers accrual arising from sick leave entitlements added during the previous year. For the 2010/11 year, the provision represents 30% of the total sick leave accrued entitlement held by group homes workers.

Maternity Leave – The Board approved a staff entitlement to maternity and paternity leave, but rescinded ongoing entitlement at year end. The provision represents the value of entitlement pre-existing for staff at 30 June 2011.



Number of Employees – The Hobart City Mission Inc employed 55 (last year 52) employees at year end, compris-ing 46 full time staff (last year 38) and 9 part time workers (last year 14).

EMPLOYEE ENTITLEMENTS PROVISIONSCURRENT LIABILITIES 2010 2011

LONG SERVICE LEAVE

Other Mission $50,142 $58,299

Group Homes $32,352 $26,677

$82,494 $84,976

ANNUAL LEAVE

Other Mission $112,971 $116,334

Group Homes $88,892 $82,329

$201,863 $198,663

SICK LEAVE

Group Homes $19,493 $19,947

$19,493 $19,947

MATERNITY LEAVE OTHER MISSION $0 $12,275

TOTAL $303,850 $315,861

NON-CURRENT LIABILITIES 2010 2011

LONG SERVICE LEAVE

Other Mission $67,510 $72,980

Group Homes $32,419 $40,829

TOTAL $99,929 $113,809



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4. PROPERTY, PLANT AND EQUIPMENT

TOTAL 2010 TOTAL 2011

PREMISES

$1,001,451 Barrack & Goulburn St $867,928

$107,792 less Depreciation on Buildings $68,519

$1,318,818 plus Revaluation Feb '09 $838,321

$2,212,477 Carrying Value $1,637,730

$83,454 2 Haig St, L/Valley imp'ments at cost $96,748

$0 less Depreciation on Buildings $0

$264,000 plus Revaluation Feb '09 $264,000

$347,454 Carrying Value $360,748

$548,932 11-13 Main Rd, Moonah $550,696

$12,513 less Depreciation on Buildings $12,513

$292,860 plus Revaluation March '09 $292,860

$829,279 Carrying Value $831,043

$3,389,210 Total Carrying Value for Premises $2,829,521

FURNITURE AND EQUIPMENT

$299,326 Values at Cost $426,297

$104,631 less Provision for Depreciation $183,452

$194,695 Total Net Furniture & Equipment $242,845

MOTOR VEHICLES

$250,930 Values at Cost $250,930

$195,209 less Provision for Depreciation $216,226

$55,721 Total Net Motor Vehicles $34,704

$3,639,626 Total Net Non Current Assets $3,107,070

page 49.


5. CASH AND INVESTMENTS – CURRENT & NON-CURRENT

6. OTHER CURRENT LIABILITIES


TOTAL 2010 TOTAL 2011

PREMISES

$47,518 Bank Accounts $19,180

$1,547 Unbanked Collections $6,518

$2,190 Cash Floats $2,440

$262,608 Investments $922,920

$313,863 Total Cash and Investments $951,058

TOTAL 2010 OTHER CURRENT LIABILITIES TOTAL 2011

PREMISES

$58,934 Trade Creditors $81,575

$44,581 Wages Accrual $92,115

$0 Insurance Payments Due $2,002

$14,736 Superannuation Payable $16,434

$44,699 Grants Unexpended $12,894

$11,920 Mission Money Outstanding $11,380

$6,208 Interest Payable on Loans $0

$3,691 Income Received in Advance $0

$9,143 Salary Deduction Commitments $11,538

$3,097 Travel Provision – transferred to Trust Funds $0

$197,009 Total Other Current Liabilities $227,938

page 50.


page 51.

BALANCE DRAWN NOTIONAL BALANCE

1 Jul 10 TRUST FUNDS Additions 2010/11 Interest 30 Jun 11

$20,336 Bonds & Savings for Clients $6,340 $26,676

$0 Travel Provision – transferred from item 6 $3,097 $3,097

$2,863 Childrens’ Camps $2,500 $1,027 $127 $4,463

$337,636 Kathleen Grace Bequest $57,600 $12,835 $292,871

[Emergency Relief 50% & IFSS 50%]

$40,558 Grace Dixon Bequest $18,840 $995 $22,713

[Emergency Relief]

$3,172 Dorothy Belcher Bequest $3,172 $0

[Property Improvements]

$17,712 Grote Reber Foundation Gift $10,740 $320 $7,292

[Pastoral & Governance]

$355,012 Joan Burnaby Bequest $355,012 $0


$39,255 Winter Appeal $23,605 $39,255 $23,605

[Emergency Relief]

$101,233 Lesley Johnstone Bequest $101,233 $0


$15,350 John Nichols Bequest $15,350 $0


Ruby McDougall Bequest $32,255 $32,255 $0


Maxwell Keith Tims Bequest $505,415 $505,415 $0


Peter Noel Wiseman Bequest $27,430 $338 $27,768

[Not Allocated]

Rounding $1

$933,127 Total Trust Funds $600,642 $1,139,899 $14,615 $408,486

7. TRUST FUNDS

Trust Funds Disclosed AboveAt present for managing purposes all the funds have been classified as current liabilities. However the majority of the capital component of the Kathleen Grace conditional bequest is expected to be progressively applied over a ten year program. Consequently as at 30 June 2011, approximately $235,000 of the balance held (2010: $294,000) can be regarded as a non current liability.


8. MISSION OPERATIONS FROM OTHER PREMISES

Leased premises in Warrane are used for Eastern Shore Opportunity Shop operations, at Huonville for the Huonville Opportunity Shop, at Claremont for the Claremont Opportunity Shop and at Goodwood for the Goodwood Opportunity Shop. Opportunity shops are also operated from Hobart City Mission Inc premises in Moonah and Barrack Street. These are shown as Barrack Cottage, Partridge Nest and Bargain Warehouse.


PART

THR

EE

page 52.

INDEPENDENT AUDIT REPORTTo the Members of The Hobart City Mission IncHobart

Report on the Financial ReportI have audited the accompanying financial report, being a special purpose financial report, of The Hobart City Mission Inc being a Not-for-Profit Incorporated entity, which comprises a statement of financial position and a statement of changes in equity as at 30 June 2011, statements of comprehensive income for the Mission’s overall operations and one for its individual programs for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and a statement by the Mission’s officers.

Officers’ Responsibility for the Financial ReportThe officers of The Hobart City Mission Inc are responsible for the preparation and fair presentation of the financial report, and have determined that the basis of preparation in the notes is appropriate to meet the requirements of The Associations Incorporations Act 1964 and is appropriate to meet the needs of the members and the requirements of grant donor organisations. The officers’ responsibility also includes such internal control as the officers determine is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on my audit. This does not include an opinion on the group homes client trust funds administered by the Mission and not included in the financial report. I have conducted my audit in accordance with Australian Auditing Standards. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

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

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

OpinionIn my opinion, the financial report presents fairly, in all material respects, the financial position of The Hobart City Mission Inc Not-for-Profit Incorporated entity as at 30 June 2011, and of its financial performance for the year then ended in accordance with the financial reporting requirements of the Associations Incorporation Act 1964.

Basis of AccountingWithout modifying my opinion, I draw attention to the Notes to the financial report which describe the basis of accounting. The financial report has been prepared to assist The Hobart City Mission Inc Not-for-Profit Incorporated entity to meet the requirements of the Associations Incorporations Act 1964 and the requirements of grant donor organisations. As a result, the financial report may not be suitable for another purpose.

R Z Bogus FCPA Hobart Registered Company Auditor 17th October 2011


HOW CAN YOU HELP?

THERE ARE SO MANY WAYS THAT YOU CAN HELP THE HOBART CITY MISSION TO HELP THE COMMUNITY:

• Donations of any kind are always welcome

• Become a Mission Mate and regularly donate

• Get your organisation involved in Workplace Giving

• Consider a bequest in your will

• Volunteer your time and use your skills and experience to help others

• Attend our fund raising events

• Develop a Corporate Partnership with the Mission

• Become a Member of the Mission

We look forward to working with you to make a positive difference in our community.

THE HOBART CITY MISSON50 Barrack Street, Hobart TAS 7000P: 03 6215 4200, F: 03 6231 0514E: [email protected], W: www.hcm.asn.au

hcm annual report 2012

Documents

mission page

hcm board page

ceo page

equity page

committees page

accounts page

officers page

boardintroduction page