hfha annual report 2010

Annual Report 2010

building homes, communities and hope

Our vision is a world where everyone has a safe and decent place to live.

A home means so much more than a roof over your head - a home means you have an address so you can get a job. It means you have somewhere secure to keep your possessions. It means you have somewhere clean to prepare and eat your food so you don’t get sick. It means you have somewhere safe to lie down every night. It means your children have a desk and a light to study by so you all have hope for the future.

About Habitat for Humanity Australia �� 02

Our year at a glance �� 03

A message from our Chair �� 04

Our board of directors ��06

A message from our CEO ��08

Our achievements in Australia �� 10

Our achievements overseas ��14

Habitat home partner - Cambodia ��18

Our partners �� 19

Our Global Village program�� 20

A life-changing experience ��21

Fundraising and marketing program ��22

Project accountability ��24

Financial report ��26

How you can create a habit(at) for humanity ��43

ACFID CodeHabitat for Humanity Australia is a member of the Australian Council for International Development (ACFID) Code of Conduct� The Code requires non-government development organisations to meet high standards of corporate governance, public accountability and financial management� Habitat for Humanity Australia’s adherence to the Code demonstrates our commitment to ethical practice in our operations in Australia and internationally�

This document can also be viewed at www�habitat�org�au

Contents

Annual Report 2010 | 01

We’re in the business of building homes, communities and hope� Habitat for Humanity is the world’s number one not-for-profit provider of housing for low-income families in need� Established in 1976 as a Christian-based humanitarian organisation, Habitat for Humanity has changed lives around the world�

Today, Habitat for Humanity has built almost 400,000 houses, sheltering more than two million people in over 3,000 communities worldwide� We provide families with safe, decent and affordable homes - in fact, a new home is built somewhere in the world by Habitat for Humanity every 24 minutes�

We believe it all starts at home� A stable, secure home creates the foundation for change, giving people the opportunity to be healthier, happier and more secure, leading to better education for their children� We believe building a decent home is much more than bricks and mortar – it provides real hope for the future�

We provide a hand-up not a hand-out by building homes in partnership with families both in Australia and overseas� The families contribute labour and a deposit, while we assist with expertise and financing� Importantly, as the no-profit loan is repaid, the funds go towards building even more

homes for people in need� In this way, the dollars that people donate to Habitat for Humanity go even further�

The families we help are living in housing-related stress� They are unable to borrow money to buy or build a home and are willing to work in partnership with Habitat for Humanity�

We do more than just build homes – we build communities by addressing water supply and sanitation issues and, in some communities, by providing health, education, livelihood and financial literacy assistance�

We also actively respond to natural disasters by providing clean water, sanitation and temporary shelter�

We’re committed to resource and energy-efficient building practices� Our construction techniques involve conserving natural resources and minimising the carbon footprint of building� As a consequence, long-term costs for our homeowners are reduced�

About Habitat for Humanity Australia

In AustraliaWe helped 11 families achieve the great Australian dream of home ownership this year, adding to the 83 homes already built� A further 41 projects are in the pipeline� The Bidwill Blitz program saw two homes built in just 12 days in 2009 – an amazing achievement! Our Brush with Kindness program continued to support families affected by the Victorian bushfires� In fact more than 530 volunteers completed over 20 Brush with Kindness projects this year�

OverseasWe worked in partnership with families and communities in six countries across the Asia-Pacific region, improving living conditions for 5,000 households� Over 800 households were assisted through the provision of core housing, home repair and rehabilitation� We also improved access to clean water and sanitation for over 800 families and helped improve health awareness for more than 2,500 women and children� Over 170,000 households were assisted with emergency food, water and shelter kits in response to the natural disasters in the Asia Pacific last year�

We also helped 96 children enrol in full-time education and 800 people received support with income generation opportunities�

Global Village programDuring 2010, over 200 volunteers joined the Global Village program and travelled overseas to help build homes alongside local families in India, Nepal, Thailand, Vietnam, Cambodia, Indonesia, and Malaysia�

Our year at a glance


A new Habitat for Humanity home is built somewhere in the world every

24 minutes

Habitat for Humanity is an incredible organisation with a proven track record of delivering positive outcomes by working hand-in-hand with those in need� I feel privileged to have been elected Chair of Habitat for Humanity Australia� We have an exceptional team in place in Australia who have a clear vision and well-defined goals for the future�

What unites all of us at Habitat for Humanity Australia is a simple belief in a world where everyone has a safe and decent place to live� It’s this belief that is at the centre of everything we do - whether it’s our board or management team, our tireless volunteers or our corporate partners, and of course our donors� We are deeply grateful for the contribution of each and every person and the difference they make to Habitat for Humanity Australia�

This has been a year of many challenges, but also many hard-won achievements�

In March 2010, we received our AusAID accreditation that lays the foundation for an ongoing funding relationship in the years to come� Importantly for our staff and volunteers, it recognises Habitat for Humanity Australia as a professional, well-managed, community-based organisation, capable of delivering quality development outcomes� This is something of which we are all proud�

In Australia, we have now assisted 94 families in need and involved them in the building of their own home� These people live on the edge of our communities, and have been helped by our affiliates in each state who invest significant amounts of time and effort to enlist the support of local businesses and tradespeople, recruit volunteers and raise additional funds to make it happen�

Building homes in Australia is challenging� The cost of land continues to rise, and the shortage of skilled labour, along

with the requirement to meet Australian building standards, makes building here significantly more expensive than overseas�

In order to complement this work, we’re exploring additional programs to make a difference to how people live - one is a renovation program, called Brush with Kindness. This is a program designed to help the elderly, carers of the elderly and disabled, and those who’ve faced a catastrophic event, like the bushfires in Victoria, renovate or upgrade their homes�

Our international program continues apace with programs across the Asia Pacific region� In addition to building homes, we have been making significant contribution to the health of communities, with the installation of clean water and sanitation�

This became abundantly clear to me while sitting in a modest, wooden house in Cambodia sharing a meal with the new owners� A well and toilet

A message from our ChairChris Franks

04 | Habitat for Humanity Australia

facilities for the community have changed their lives� One of their treasured possessions is a small photograph of the smiling Global Village volunteers who helped build their home� They call them ‘good friends’, people who sweated and toiled next to them, forgot language barriers and communicated instead with smiles, a few simple words and hugs of thanks� And they asked me to once again thank all our volunteers and donors for their support and generosity� We are truly blessed to share these experiences with our loyal and generous sponsors and donors,

who believe in our work and trust us to deliver, at lowest cost, high quality homes for people who desperately need them in Australia and overseas�

We also receive generous donations of goods and services, particularly in Australia� Some of our partners provide corporate services that reduce our legal, accounting and auditing costs and requirements, helping us to maintain an open and transparent policy on how we spend our limited funds� Ultimately, these generous donations enable us to do more for more families in need�

Habitat for Humanity Australia has focused on improving and strengthening its governance framework� Over several years, we’ve increased the number of directors to help us achieve our goal of assisting more families� We welcome Paul Mulroney from NSW who was nominated by our affiliates, and congratulate director Peter Schulze on being elected Chair of Habitat for Humanity, South Australia� We also welcomed new directors Sue Baker-Finch, Hugh Martin, Shannon Hood and Zlatko Todorcevski�

This year demanded a high level of input and effort from our board and I would like to thank my fellow directors for their wise and thoughtful counsel and willingness to get involved� Our directors also paid their own expenses - a major donation, especially when flying interstate - and one which enabled us to direct funds to those most in need�

My gratitude is to each and every one of you and I look forward to working with you in the coming year�

An enormous thank you to everyone who has supported us this year�


One of their treasured possessions is a small photograph of the smiling Global Village volunteers who helped build their home� They call them ‘good friends’ people who sweated and toiled next to them, forgot language barriers…

Chris Franks (Chair)

Chris was appointed Director of Habitat for

Humanity Australia in 2008 and elected

Chair in 2010� She was Chair of the Australian Council for International Development (ACFID), was on its Code of Conduct Committee from 2002-2008, and received the inaugural ACFID Award for Outstanding Service to the Aid and Development Sector in 2006� Chris currently runs a consulting company and is a non-Executive Director of CUA and CUA Health and Chair of the CUA Sustainability Committee� Other not-for-profit roles include past Chair of the NSW Charities Ministerial Advisory Committee and executive or board roles with National Heart Foundation, Starlight Children’s Foundation, Oxfam, Save the Children NSW and the Australian Consumers’

Association - CHOICE�

Graeme W Sinclair (Treasurer)

Graeme is a qualified Chartered Accountant

with more than 30 years’ experience in investment and wealth-management services, working with KMPG in Melbourne and London� He joined the Myer Family Group in 1973 and retired

as Managing Director and Group Chief Executive Officer in 2009� Graeme is a director of Habitat for Humanity, Victoria, as well as Peet Ltd and Mirrabooka Investments Ltd, Chairman of Australian Geographic Retail Pty Ltd and a director of a number of other private companies� He is also a Trustee of The William Buckland Foundation� He has previously been involved in professional, community and philanthropic activities, as well as committee roles in sporting and aged-care organisations�

Zlatko Todorcevski (Secretary)

Zlatko is the Chief Financial Officer of Oil Search

Limited, an ASX-listed,

top-thirty company focused on the exploration for, and development of, oil and gas resources internationally� Prior to joining Oil Search, Zlatko enjoyed a 23-year career with BHP Billiton, where his most recent position was Chief Financial Officer of the Energy Group� His career at BHP spanned numerous roles and included extended international postings in Europe and the UK� Zlatko brings tremendous depth and breadth of experience in international financial matters, as well as in strategy and mergers and acquisition�

Sue Baker-FinchSue is a

Director of the Illawarra

Business Chamber, Wollongong City Centre Limited, as well as Habitat for Humanity, Australia� Her career includes 13 years in science education and over 15 years experience in senior executive management roles across all three levels of government� She is currently the Chief Operating Officer of the Illawarra Health and Medical Research Institute and previously completed a three-year tenure as Chief Executive of the ACT Government’s wagering business� Sue has also held senior roles at the Australian Sports Commission and Institute of Sport�

Shannon HoodShannon began his career as a

manufacturing engineer,

becoming the National Technical Services Manager with Skilled Engineering� During this time he trained as an accountant and eventually worked as a management consultant with Deloitte Touche Tohmatsu in Melbourne, Adelaide and Tokyo� In 2003 Shannon went on to study theology and ministry�

Our board of directorsHabitat for Humanity Australia is governed by a board of voluntary directors who are elected and appointed by members at the Annual General Meeting� Directors are elected or appointed for two year terms and the constitution sets limits on the maximum period that people may serve on the board� There are currently eight appointed directors�

He now oversees vocational education training for the Lutheran Church of Australia and provides pastoral care for the South Australian State Emergency Service� He is a member of the Critical Incident Stress Management Foundation of Australia and the Australian Institute of Company Directors�

Hugh MartinHugh is Executive Director of Vivas Lend Lease,

with over 30 years’ experience

in the property industry, internationally and domestically� He was the Chief Executive Officer of the most successful joint venture between Mirvac and Lend Lease, in the development, construction and sale of the Olympic Village, now known as the suburb of Newington in Sydney� During its development, design innovation - in terms of sustainability - was achieved through the use of photo-voltaic cells, grey water and in particular, recycling construction materials on site� Many of these initiatives created a new standard for residential community development in Australia�

Paul MulroneySince January 2001, Paul has been

a Children’s Court magistrate

in New South Wales and is currently Chairman of Habitat for Humanity, New South Wales, having previously been a member of the Habitat for Humanity Australia Board from 2001-2005�

Prior to his appointment as a magistrate, he worked for more than 20 years as a lawyer for Legal Aid� He has been an alternate commissioner of the NSW Legal Aid Commission, a member of the Criminal Law Committee of the NSW Law Society, a trade union delegate, President of the University of NSW Students Union, member of the University of NSW Council, and a management committee member of a number of community groups� Paul is a member of the Church Council and an Elder of the Church in the Market Place, the Uniting Church in Bondi Junction� He is also a lay preacher�

Peter SchulzePeter is currently Chairman

of AFA Interactive� He

has also held senior leadership roles in workers compensation, HR, project management and establishing community development partnerships in many developing nations across Asia-Pacific� Previous roles have been with Myer, WorkCover South Australia, Chamber of Manufacturers and other private ventures� Active in a number of community organisations, he is currently Chairman of Habitat for Humanity, South Australia where he’s been on the Board since 2006, and has chaired the International Programs Advisory Committee for Habitat for Humanity Australia through the process towards AusAID accreditation�

David W Benn, Chairman (Immediate past Chairman)

David held leadership positions in

international banking and finance in the US and Australia for 24 years, followed by 13 years in the senior executive search field� He was most recently Chairman of Peoplebank Ltd, an ASX listed IT contracting firm� Other corporate directorial responsibilities include companies operating in funds management, strategic consulting, senior management succession planning and market research� His community leadership roles have included being Chairman of the Fulbright Commission for bi-national scholarships, President of the American Club, Sydney, Chairman of the Parish Council of St Stephen’s Church, Sydney, and a number of other charitable and community organisations�

Hon� Kerry J Bartlett, (Immediate past secretary)

Kerry completed 12 years in Federal

Parliament as the Member for Macquarie, including serving as the Chief Government Whip, 2004-2007� His tenure also included serving on key educational, training, environmental, health and ageing committees� He was a secondary school economics teacher in NSW and PNG for almost 25 years� He has ongoing leadership roles in a number of community organisations�


At Habitat for Humanity Australia we make tangible change by giving families in need a ‘hand up not a hand out’� In the process of building homes and communities, lives are transformed and together we build hope for the future�

This year has been no exception� We assisted 836 families in building safe, decent homes in communities across Asia and here in Australia� We are only able to do that as a result of your support�

Meeting our partner families and seeing first hand the difference a safe, decent home makes has been the highlight of my first year at Habitat for Humanity� The determined, resilient and hard working families we partner with are truly inspiring; it’s their stories that motivate our team�

This year I have been privileged to be involved in many Habitat for Humanity projects� I met families who have moved from rubbish dumps in Vietnam to new Habitat homes and who can now close the door at night and be safe� I have seen the pride on a mother’s face in Cambodia as she showed me the shop she set up in her new home to generate income for her and her two children� It has reinforced my understanding of the impact a stable home brings, including the improvements in education and health that arise from not having

to continuously move from place to place� This is as true of our Australian families as it is of the international families we assist�

One can’t help but be fundamentally changed when you witness these human stories and see the pride and dignity of our families worldwide�

As an organisation, we have been making changes internally as well this year� We have built a strong management team who bring high levels of professionalism and motivation to our work� Our Board has continued to be strengthened and we have an updated strategic plan for 2011 to 2013 with specific goals and revised targets� Our four key goals are sustainability, growth, quality and efficiency and innovation� This focus will help us meet the growing demand for our work across the region�

We are delighted to have continued the ongoing relationship with our key sponsors QBE LMI – Foundation Sponsor, along with The Charitable Foundation, Communities for Communities and Origin Energy� We are also very pleased to welcome Santos and Burt’s Bees as new partners working with us to address global poverty housing issues�

Despite the challenging financial environment we are pleased to report that our revenue has

increased from $3�5 million to $3�8 million, an increase of 8�3% in line with the annual budget�

A key milestone this year was receiving AusAID accreditation – a significant achievement for a small development agency� Our donors can be ever confident that the work we do overseas meets rigorous Australian government standards�

We are close to completing projects in the Philippines and Afghanistan and excited to be starting new projects in Bangladesh and Nepal, whilst expanding our program in Cambodia�

In Australia, the Victorian Brush With Kindness program has assisted over 20 families affected by the bushfires and NSW completed another very successful Bidwill Blitz build, completing two homes in under two weeks� South Australia has continued to expand its program, building four new homes, Western Australia is nearing completion of its first home and Queensland has continued to engage strongly with its local community�

Last year over 200 people ‘travelled and changed the world’ through our Global Village program� It’s always inspiring to hear Global Village participants’ stories upon their return� As a result of building

A message from our CEO Jo Brennan



homes alongside our partner families overseas, many tell that they receive much more than they give�

The Global Village program will expand significantly next year with over 500 people participating� I’m very excited that this includes our first Hand in Hand build, where Australian women will travel to Nepal with us to celebrate the centenary of International Women’s Day by giving a ‘hand up’ to 250 female-headed families in desperate need�

There is still a vast amount of work to be done� The inequality across societies is growing, over 1�6 billion people of our near neighbours are living in dire conditions, while housing affordability continues to spiral out of reach of thousands of Australians�

It is only through the loyal support of our donors, sponsors, volunteers, board and staff that we are able to continue our vital work – thank you for being part of the ‘perpetual motion miracle’ that is Habitat for Humanity Australia�

Jo Brennan CEO

The Brush with Kindness program has continued to offer practical help to families recovering from the Victorian fires. This has been through a variety of activities including fencing, site clearing, tree removal, painting and renovation work. Teams of corporate and individual volunteers have given more than 3,000 hours of service and more than 530 volunteers have participated in over 20 Brush with Kindness projects.

It’s now almost two years since the fires, but new requests for assistance are received weekly from families in the affected areas. Although many agencies are reducing their role in the area, Habitat for Humanity is committed to helping families in the long-term recovery process. We currently have over 25 projects that require our assistance.

Habitat in NSWLast year, Habitat for Humanity built three new homes in NSW for the Hart, Webeck and Koko families� QBE LMI played a significant role both financially and physically, employees rolled up their corporate sleeves and provided over 1,200 volunteer hours helping to build homes for families in need�

In a unique new partnership, Habitat for Humanity NSW has teamed up with the GEO Group, TAFE NSW Riverina Institute and Junee Shire Council to work in a new Prison Partnership program� This program will identify offenders keen to volunteer and learn new skills in a range of marketable construction trades they can use when they are out of the prison system� They will build a home for a local Junee family�

NSW have eight projects planned for the year ahead�

Habitat in VictoriaHabitat for Humanity in Victoria has had a busy year, building seven new homes, continuing to help those affected by the bushfires, as well as working to ‘restore’ communities�

The bushfire response program has seen the development of a major project in Yea, where up to 25 homes will be built, primarily for families affected by bushfire or those not wishing to return to the bushfire area� Habitat for Humanity has purchased a 2�1 hectare property in the township of Yea itself to provide a safe location nearer to a local community for these families�

The Yea Project is the largest project Habitat for Humanity has undertaken in Australia and will have a major impact on both the families and the local Yea community� Our thanks to professional services firm ARUP for offering expertise in the planning stages and Caterpillar for providing time and machinery to help clear the site� Financial and ‘gifts in kind’ have been provided to date by QBE LMI, Covidien and CSR� Other corporate sponsors committing to the Yea project, as it progresses, include Stanley Black & Decker�

Restore has over 600 stores in the USA and Canada, and last year the first Australian Restore opened in Victoria� Restore is a home bargain centre which sells

second-hand, new and donated building related materials with funds raised supporting Habitat for Humanity’s building program� The store is managed by a team of local volunteers and the concept is helping to build the overall awareness of Habitat for Humanity’s work in Victoria�

Habitat in QueenslandHabitat Queensland would like to thank all the small businesses who have made donations for the first time this year�

It is especially grateful for the ongoing generosity of donations from Dulux and Apprenticeships Queensland for providing regular volunteers�

The Ipswich Chapter has completed Queensland’s first Brush with Kindness project� A three-bedroom house was purchased in Ipswich to renovate for a refugee family from Papua New Guinea with six children�

This year volunteers have come from as far as Canada, Scotland, Sweden and Denmark� We’d like to thank all our volunteers for their support throughout the year�

Our achievements in AustraliaHabitat for Humanity Australia has built 94 homes and will celebrate the construction of its 100th home in 2011�


Habitat in Western AustraliaHabitat for Humanity is currently building the first home in Western Australia, due for completion in December 2010� A huge thank you to all sponsors and donors in the west�

Habitat in South AustraliaThis year Habitat for Humanity completed four, three-bedroom homes in South Australia, which were handed over to the homeowners in February� Four more houses are currently under construction with key partners Ask Employment, Dulux, Housing Industry Associate (HIA) Apprenticeship program, Playford Alive, Prospect Training and St Patrick’s Technical College�

“QBE LMI is the first company that I’ve ever worked for that doesn’t mind people taking time off to do volunteer work. It really does make you feel good when you volunteer on a build, and Ian (CEO, QBE LMI) makes you feel very proud of yourself for being involved”

– Michelle Mangleson (Volunteer on five builds and QBE LMI employee for five years)


Michelle Mangleson – 3rd from right

Diana Graham Imagery

Harley Laver and Darren Thompson Picture: Nicholas Wrankmore

“I had a few troubles at school. I just didn’t like it, but this project has been a lot of fun and it’s totally turned my life around, it was wicked building the house and everyone just came along and helped each other out”

- Harley


Habitat for Humanity gives Harley hope and a positive change for the future

Late last year Harley dropped out of school with little hope for his future� Now 15, he’s a full-time apprentice, having helped to build a new Habitat for Humanity home for a family in need� Harley is one of nine young people who recently completed the Housing Industry Association (HIA) Youth Build Playford Alive project�

The group, consisting of Playford residents aged 15 to 24, built a new home in Elizabeth Park, South Australia, which will be sold to a low-income family as part of the Habitat for Humanity program� While building the house, the participants completed a Certificate II in General Construction and launched careers in construction� They completed occupational, health and safety training, then built the frames, walls and roof of

the house under the supervision of a qualified builder� Harley, who is now three weeks into an apprenticeship with steel framing firm Ausco, said they also learnt the value of teamwork�

The HIA apprentice manager, Darren Thompson, said the program targeted local youth who had dropped out of formal training, education and employment� Three participants have secured full-time apprenticeships, with two others gaining casual employment� Mr Thompson said the group had also felt rewarded by the high quality end product and gained the self-belief to retain full-time jobs�

“It instilled the belief in each of the participants that they can be an active member in the workforce,”

- Darren Thompson.

Tania manages the international

programs for Habitat for Humanity

Australia� Tania’s passion and drive has always been connected with helping people and making a difference� Before joining Habitat for Humanity, Australia she worked with Unicef, ChildFund Australia, and the Human Rights and Equal Opportunities Commission�

The opportunity to interact with beneficiary families on her monitoring trips is a real pleasure for Tania� Remembering where they’ve come from and seeing them in a new home is always a proud moment for her�

The international strategic plan focused on three key objectives during the year� Which were, establishing an ongoing relationship with AusAID, strengthening our program in the Asia-Pacific region and embedding an integrated community development approach�

14 | Habitat for Humanity Australia Picture: Mikel Flamm


Our achievements overseasTania Flood

This year, assistance provided by Habitat for Humanity Australia’s international program improved:

• the living conditions of 825 households through the provision of core housing, house repairs and rehabilitation

• access to water and sanitation for 839 families

• basic health awareness for 2,643 community members, the majority of whom were women and children

• 799 households’ livelihood opportunities and financial literacy skills

• access to schooling for 96 children�

In the Philippines 173,104 people were provided with food for work packages and bottled water, following Tropical Storm Ketsana�

Establishing an ongoing relationship with AusAIDIn March 2010, Habitat for Humanity Australia received AusAID accreditation� This was a great achievement that will provide funding for our programs over the years ahead�

Strengthening our program in the Asia-Pacific regionAlong with our implementing partners, we worked with families and communities in six countries, implementing nine projects across the Asia-Pacific Region in Cambodia, Vietnam, the Philippines, Myanmar, Indonesia and Afghanistan�

Integrated community developmentHabitat for Humanity Australia recognises that tackling the many facets of poverty requires a complex set of inter-related solutions� That’s why our programs are designed to go beyond simply constructing or repairing physical structures� Integrated, holistic programs incorporating education, health and hygiene promotion, water and sanitation, livelihood and civil society development are supported to increase the likelihood of lasting, sustainable development outcomes�

Highlights from our integrated community development program:

Strengthening civil societyIn Cambodia, efforts continued to enhance local community governance through the development of civil society groups that institutionalise inclusion and participation of community members, particularly women, in local decision-making processes� Habitat for Humanity facilitated the establishment of local associations within communities who can take responsibility for their own community development�

In Siem Reap, 20 Village Associations were formed, trained and assisted to produce their own village development plans� In Phnom Penh, we continued to strengthen the capacity of 20 local associations, progressively established since 2004� These associations work with project staff to develop community specific housing improvement solutions, set guidelines and identify and properly select beneficiaries� They mobilise community participation and coordinate with local authorities and other responsible agencies to allow their community to address issues that will improve their community’s collective wellbeing�

Improving living conditionsHabitat for Humanity Australia continued to assist communities of families living and working on garbage dumps in Phnom Penh, Cambodia and Rach Gia City in Vietnam, creating improved housing with access to clean water and sanitary toilets�

A further 24 families from the municipal garbage dump in Rach Gia City are experiencing fewer health ailments associated with overcrowding, poor ventilation and air quality�

Nineteen families from the Steung Meanchey garbage dump in Phnom Penh have relocated to a new village in the Kandal province, where improved housing is also improving their livelihood, with the opening of small businesses, grocery shops and food stalls�

Under the housing and community development program funded by The Charitable Foundation, a further 1106 people in Cambodia benefited from new and/or repaired housing and access to water and sanitation�

Improving access to educationThroughout the second half of the year, we began supporting the Al-Turabi school in Afghanistan, developing three additional classrooms, due for completion at the end of 2010� To date over 200 children have moved out of make-shift tent’s into classrooms�

Promoting healthHabitat for Humanity Australia supported basic health promotion in Cambodia and Vietnam� Community health volunteers were trained in communities in Phnom Penh to deliver basic health awareness messages including hygiene, prevention of malaria, dengue fever and improved

nutrition for more than 600 women and children�

Seventeen hundred children from primary schools in Angkor Chum District in Siem Reap province received training on personal hygiene, focusing on the critical moments for hand washing�

Enhancing livelihoodsMore than 500 households in the Angkor Chum District of Siem Reap province received training on improved agricultural practices to grow vegetables, with a variety of seeds distributed and planted� We also introduced a pilot program for selected families to raise pigs�

In Vietnam, partners from the Rainbow Village Project were trained to help construct their own homes, along with a vocational skills centre at the project site� Many of these previously untrained workers have been able to secure higher-paid, skilled jobs away from the garbage dump and some have even become small construction contractors�

In Indonesia, over 54 community members have participated in community-based training focusing on activities that will generate income including construction, making concrete blocks and cooking� Over half are now receiving an income from making hollow concrete blocks�

Our achievements overseas(Continued)



Providing emergency reliefThe devastating Tropical Storm Ketsana in the Philippines destroyed over 16,000 homes and forced more than 330,000 people into evacuation centres around Manila� Habitat for Humanity Australia, in partnership with Habitat for Humanity Philippines and The Charitable Foundation, delivered a large-scale emergency response and recovery project� The project directly assisted over 170,000 people through the provision of emergency home repair kits, food-for-work packages and water distribution�

Picture: Mikel Flamm

Eagk Family - Current Habitat Home Partner, Kandal Province�Single mother Ms Eagk Srey Hak lived at the Steung Meanchey Municipal Dumpsite in Phnom Penh for over ten years with her two children� She moved to the dumpsite with her husband and collected rubbish�

“Since my husband left here, some time ago, I have been supporting myself and my two children on my own� It has been difficult, but we have managed,” Srey Hak said�

In November 2009, Srey Hak worked for a week building her house alongside international and local volunteers� After moving into her home she set-up a shop selling food and sundry items to the neighbouring villagers, an enterprise that has doubled her average daily earnings�

She has also attended a Habitat Cambodia training course on how to raise animals and has started raising chickens to increase her income�

Most importantly, her children are regularly attending school� Srey Hak said, “I feel it is important for the children to receive an education to make sure they have a better future� It is up to them what they wish to do once they complete school, but at least they will be prepared�”

Habitat home partner - Cambodia

Srey Hak and her children in front of their home at the Steung Meanchey Municipal Dumpsite, Phnom Penh�

Srey Hak proudly posing in front of her new home/store�

Thank you for your continued support of Habitat for Humanity Australia’s critical work�

Our partners


Habitat for Humanity Australia works with a large community of organisations to alleviate poverty, by providing safe, decent and affordable homes for families in Australia and overseas� This is made possible by the generosity of our partners and supporters� Without your essential financial support we could not fulfil our mission�

A keen traveller, Alexandra Mar has witnessed terrible living conditions and many people in need of assistance over the years� She joined Habitat for Humanity Australia in 2009 as manager of the Global Village program to help make a difference�

Alexandra finds the stories volunteers tell her when they return from a Global Village trip an inspirational part of her job� These trips provide donors with an opportunity to travel overseas and contribute to bringing about positive change�

Setting aside a week or two of their lives for a new experience, our Global Village participants gain a deeper insight into Habitat for Humanity’s work and the communities we support� Working alongside partner

families and team members, they

witness first-hand the difference a safe

and decent home makes to the lives of people living

in poverty, and return home with a transformed world view� In changing the lives of our partner families, they in turn change their own�

Global Village teams are formed by individuals, school groups, university social clubs, community groups and corporate organisations� This variety is testament to the power Global Village has to unite individuals into a dedicated team�

Global Village participants are more than volunteers� They also have an important fundraising target to meet, vital to building programs� Over 200 participants joined the program, travelling to countries throughout the Asia-Pacific region including Cambodia, Nepal, Thailand, Vietnam, Indonesia, India and Malaysia�

2011 will be another exciting year for Global Village with many teams already planning their next adventure� Increasingly donors and supporters are looking to Habitat for Humanity Australia to provide unique opportunities for community engagement� Through Global Village, we can share the positive difference that Habitat for Humanity makes in the lives of those in need and increase the awareness of the challenges of poverty in our region�

A big thank you to all our volunteers and program participants and sponsors�

Our Global Village program

Alexandra Mar


Michelle was introduced to Habitat for Humanity when a colleague sent out an email recruiting volunteers for a Global Village trip to Indonesia� She’d been looking for an opportunity like this for some time and was attracted by the chance to travel while contributing to a worthy cause - all under the safe guidance of an organisation with local knowledge�

Michelle describes her experience in Indonesia as life-changing� Interacting with the residents and immersing herself in their culture provided some respite from her busy work schedule and, upon her return, led her to reassess her life and its direction�

Michelle began volunteering for Habitat for Humanity in her

local state office in Perth and in March 2010 she put her leadership skills to use by guiding a Global Village team build in Cambodia� She gets great joy at being able to make life-changing experiences for other volunteers, similar to her own experience in Indonesia�

Michelle has been volunteering in Western Australia, and enjoys experiencing the organisation on the ‘other side of the fence’� Michelle finds her role with Habitat for

Humanity full of interesting moments as she tackles

the challenges a not-for-profit organisation faces�

Her motto: “If you don’t like it, change it ;and if you can’t change it, change the way you think about it�” That’s certainly what she’s done and has found herself significantly happier�


A life-changing experienceMichelle Foley

Picture: Mikel Flamm

Fundraising and marketing programLaura Carniato


Laura is responsible for Habitat for Humanity Australia’s fundraising and marketing program� After a career in consumer goods marketing, Laura moved into the not-for-profit sector six years ago� While she shares a philosophical belief in the need for everyone to have a home, what she likes most about working at Habitat for Humanity is the ability to actually see the impact her work makes on people’s lives and a recent trip to Cambodia really reinforced this� She sees her job as letting as many people as possible know about the great work Habitat does, and how money is well spent to genuinely transform lives�

The past year has seen donations of $3�4 million from donors and supporters, which is an outstanding contribution built from great kindness and generosity�

1�483 new donors joined the Habitat for Humanity Australia family and the HopeBuilder membership program increased by 16%, with new members pledging their ongoing monthly support to our building program�

Habitat for Humanity Australia was the nominated charity of choice at the Homebake Music Festival in December, which provided an opportunity to showcase the work of Habitat to a more diverse market�

Over $15,000 was raised for the Haiti disaster appeal, coordinated by Habitat for Humanity International to help provide shelter kits�

The work-place giving program was expanded, with large donations matched through generous corporations�

Habitat Lifebuilder Gifts - an online gift catalogue - was launched in time for Christmas, giving supporters the opportunity to purchase a range of gifts for any occasion, with proceeds supporting Habitat’s international building program�

“You will notice we have launched a new look and feel for Habitat for Humanity Australia, expressing our personality, the growth of the Habitat community and the work that we do� By working with the team at Sensory we now have a thorough brand refresh across all print and online media�”

“It is only through your generous donations of time and money that we are able to celebrate these achievements in 2010� We have done a lot in the past 12 months - helping more than 5000 families - but we know we can do much more in the coming year�”

“We thank you for your loyalty and for sharing our mission to eradicate poverty housing� We hope that you will continue on this journey as we enter the year ahead�”

Our donor “Habitat for Humanity Australia is a unique organisation, which encourages individuals to volunteer for community programs, delivering tangible benefits for those in need. More than that, it’s a low-maintenance organisation that spends its funds wisely.”

John Connor - donor since 2005

Chandra spent six years working in the not-for-profit sector before joining Habitat for Humanity Australia as Finance Manager in November 2009� He feels Habitat for Humanity deals with the most crucial and basic human need - shelter�

One of the best parts of working for Habitat for Humanity Australia, according to Chandra, is visiting the projects and observing the changes the organisation is making to people’s lives� It gives him immense satisfaction and motivation for the future� He was amazed and inspired by the optimism of a family he recently met while on a trip to Indonesia - their different living situation belied their positive and enthusiastic outlook�

“We’re diligent about our responsibility and accountability in ensuring that funds are delivering expected outcomes� That’s why we visit various sites to review project finance procedures, assess partner capacity and provide adequate training and support� These visits also include meetings with beneficiary families to obtain feedback and build our relationship with them� The visits allow time to assess the impact our assistance will have on the local community and to address any issues which may have arisen during a project’s implementation�”

“In Bitung, Indonesia, I had the opportunity to visit a community settlement to confirm that 15 families within the local community required assistance� At a meeting with a local community leader we were able to agree project objectives, design and outcomes� It was great to see such an enthusiastic response from the community eagerly looking forward to the project and, in particular, brick laying training and the income generation program�”

Project accountability Chandra Sharma


Financial reportFor the year ended 30 June 2010 This financial report has been prepared in accordance with the ACFID code of conduct� For full information on the Code please refer to the ACFID Code of Conduct Guidance Document available at www�acfid�asn�au

Independent audit report



Independent audit report (continued)


Directors’ ReportDirectorsThe names and details of the Company’s directors in office during the financial year and until the date of this report are as follows:

Names, qualifications, experience and special responsibilities

Position Experience/Professional background

Date of Appointment

Date of Retirement/Resignation

Christine Franks Chairperson Company Director and Management Consultant 1-Jul-08

David Benn Director Company Director and Management Consultant 1-Jul-08

James Allardice Director Company Executive 1-Jul-08 11-Dec-09

Kerry Bartlett Director Teacher 1-Jul-08 10-Aug-10

Peter Schulze Director Management Consultant 1-Jul-08

Graeme Sinclair Director Company Director 1-Jul-08

Shannon Hood Director Project Officer 11-Dec-09

Hugh Martin Director Company Executive 11-Dec-09

Paul Mulroney Director Magistrate 12-Feb-10

Zlatko Todorcevski Company Secretary Corporate Executive 12-Apr-10

Sue Baker-Finch Director Company Director 7-Jun-10

Corporate InformationHabitat for Humanity Australia (HFHA or the Company) is a non-profit Company Limited by Guarantee and domiciled in Australia� The registered office of the HFHA is in New South Wales, Australia� The entity employed twelve employees as at 30 June 2010 (twelve employees as at 30 June 2009)

Corporate AddressSuite 2, Level 9, 20 Berry St North Sydney NSW 2060 Australia

Principal ActivitiesThe principal activities during the year of HFHA were activities associated with the provision of affordable housing to low income families�There have been no significant changes in the nature of those activities during the year�

Operating and Financial ReviewThe total revenue of HFHA was $ 3,814,615 (2009: $ 3,520,415) and expenses of $4,061,338 (2009: $ 2,998,517) resulting in a deficit of $ 246,723 (2009: excess $ 521,898)�

Significant Changes in the State of AffairsThere have been no significant changes in the state of affairs of HFHA during the period�


Directors’ Report (continued)

Significant Events After the Balance DateThere have been no significant events occurring after balance date which may affect either HFHA’s operations or results of those operations or the HFHA’s state of affairs�

Likely Developments and Expected ResultsThe business of the organisation is expected to grow significantly both in terms of number of families supported within Australia and Asia Pacific region and volume of financial transactions next year�

Environmental Regulation and PerformanceThe Company is not subject to any significant environmental regulation�

Indemnification and Insurance of DirectorsThe Company has an insurance contract to indemnify directors for any breach of the Trade and Employement Practice Act or discrimination laws for which they could be held personally liable�

Director’s Meetings

Name of Director Number of meetings held while in office Number of meetings attended

Christine Franks 6 5

David Benn 6 6James Allardice 2 2Kerry Bartlett 6 3Peter Schulze 6 5Graeme Sinclair 6 5Shannon Hood 3 3Hugh Martin 3 3Paul Mulroney 2 2Zlatko Todorcevski 2 1Sue Baker-Finch 1 1

Committee MembershipDirectors acting on the committees of the Board and the meetings attended are as follows:

Finance and Audit Committee

Name of Director Number of meetings held while in office Number of meetings attended

Peter Shulze 2 1

David Benn 2 2

Graeme Sinclair 2 1

Auditor’s Independence DeclarationThe directors have received an Independence Declaration from the Auditors, which is included on page 31 of the financial report�


Directors’ Declaration

In accordance with a resolution of the directors of Habitat for Humanity Australia, I state that:

In the opinion of the directors:

(a) the organisation is not a reporting entity as defined in the Australian Accounting Standards(b) the financial statements and notes of the HFHA are in accordance with the Corporations Act 2001, and:

(i) give a true and fair view of the Company’s financial position as at 30 June 2010 and of its financial performance for the year ended on that date; and “

(ii) comply with Accounting Standards to the extent described in note 2 to the financial statements and the Corporations Act 2001; and

(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable�

This declaration is made in accordance with a resolution of the directors�

On behalf of the Board

Christine Franks Graeme SinclairChairperson Chairperson, Finance and Audit Committee

Sydney, 11 October 2010 Melbourne, 11 October 2010


Auditor’s Independence Declaration


Income StatementFor the year ended 30 June 2010

Notes2010 2009

$ $REVENUE

Donations and Gifts

- Monetary 2,918,583 2,490,438

- Non-monetary 131,278 130,631

Bequests and Legacies - 2,373

Grants - Overseas 682,891 765,533

Investment Income 3(a) 66,725 99,146

Other Income 3(b) 15,138 32,294

Revenue for Int’l, Political and Religious Proselytisation Programs - -

TOTAL REVENUE 3,814,615 3,520,415

EXPENDITURE

International Aid and Development Programs Expenditure

International Programs

- Funds to international programs 1,462,810 752,045

- Program support costs 381,916 335,105

Community Education - 28,451

Fund Raising Costs

- Public 656,573 632,511

- Government, multilateral and private 105,546 213,241

Accountability and Administration 403,964 499,827

Non-monetary Expenditure

- Depreciation 3(c) 17,841 18,382

- Exchange Loss 19,246 11,839

Finance Costs 16,326 24,290

Total International Aid and Development Programs Expenditure 3,064,222 2,515,691

Expenditure for Int’l, Political or Religious Proselytisation Programs - -

Domestic Programs Expenditure Program expenditure and support cost 478,548 228,766

Non-monetary Expenditure

- NPV Charge on loan to Affiliates & former Affiliates 220,338 127,904

- Australian Affiliates Loans write off 166,952 -

- Contributed services 131,278 96,135

- Amortisation of Lease Incentive - 30,021

Total Domestic Programs Expenditure 997,116 482,826

TOTAL EXPENDITURE 4,061,338 2,998,517

EXCESS OF REVENUE OVER EXPENDITURE (246,723) 521,898


Statement of Comprehensive Income For the year ended 30 June 2010

2010 2009

$ $

Excess of revenue over expenditure for the year (246,723) 521,898

Other comprehensive (loss)/income - -

Other comprehensive (loss)/income for the year - -

Total comprehensive (loss)/income for the year (246,723) 521,898


Balance SheetFor the year ended 30 June 2010

Notes2010 2009

$ $

ASSETS

Current Assets

Cash and cash equivalents 4 749,329 685,224

Trade and other receivables 5 342,759 284,631

Other financial assets - loans and receivables 6 58,508 118,929

Total Current Assets 1,150,596 1,088,784

Non-Current Assets

Other financial assets - loans and receivables 6 279,353 708,594

Property, plant and equipment 7 2,964 20,805

Total Non-Current Assets 282,317 729,399

TOTAL ASSETS 1,432,913 1,818,183

LIABILITIES

Current Liabilities

Trade and other payables 8 59,063 55,963

Borrowings 9 - 47,046

Current tax liabilities 27,448 10,494

Lease incentive liability 21,128 21,128

Provisions 10 25,796 35,782

Deferred revenue 11 417,874 520,600

Total Current Liabilities 551,309 691,013

Non Current Liabilities

Other financial liabilities 12,126 10,969

Total Non Current Liabilities 12,126 10,969

TOTAL LIABILITIES 563,435 701,982

NET ASSETS 869,478 1,116,201

EQUITY

Retained Earnings 12 869,478 1,116,201

TOTAL EQUITY 869,478 1,116,201

At the end of financial year Habitat for Humanity Australia had no balance in the Inventories,

Assets held for sale, Investment Property and Intangibles categories�


Statement of Changes in EquityFor the year ended 30 June 2010

As at 1 July 2008 $

Retained earnings at the beginning of the year 594,303

Excess of revenue over expenditure for 2009 521,898

Other amounts transferred (to) or from reserves -

As at 30 June 2009 1,116,201

Changes in equity from adjustments -

Excess of revenue over expenditure for 2010 (246,723)

Other amounts transferred (to) or from reserves -

As at 30 June 2010 869,478

Table of Cash Movements for the Designated PurposesCash Movements for the year ended 30 June 2010

Cash available at beginning

of year ($)

Cash raised during

year ($)

Cash disbursed during

year ($)

Cash available at end of year ($)

Designated purposes

Designated purposes -Overseas Program 460,583 1,550,041 1,518,213 492,411

Designated purposes -Domestic Program 43,587 477,687 373,864 147,410

Other purposes 181,054 1,602,990 1,674,536 109,508

Total 685,224 3,630,717 3,566,613 749,329

Cash Movements for the year ended 30 June 2009

Cash available at beginning

of year ($)

Cash raised during

year ($)

Cash disbursed during

year ($)

Cash available at end of year ($)

Designated purposes

Designated purposes -Overseas Program 437,638 1,551,635 1,528,690 460,583

Designated purposes -Domestic Program 154,822 446,903 558,138 43,587

Other purposes 36,691 1,958,897 1,814,534 181,054

Total 629,151 3,957,435 3,901,362 685,224


Cash Flow StatementFor the year ended 30 June 2010

Notes2010 2009

$ $

Cash flows from operating activities

Receipts from customers 3,567,006 3,590,677

Payments to suppliers and employees (3,610,041) (3,244,556)

Interest received 15,898 25,111

Interest paid (16,326) (24,290)

Net cash flows from operating activities 13 (43,463) 346,942

Cash flows from investing activities

Loans provided to affiliates - (509,714)

Repayment of loans by affiliates 154,614 266,239

Purchase of property, plant and equipment - (2,000)

Receipt from property, plant and equipment - 408

Net cash flows (used in) investing activities 154,614 (245,067)

Cash flows from financing activities

Receipt of loans - 75,000

Repayments of loans (47,046) (120,802)

Dividends paid to minority interest

Net cash flows from/(used in) financing activities (47,046) (45,802)

Net increase in cash and cash equivalents 64,105 56,073

Cash and cash equivalents at beginning of period 685,224 629,151

Cash and cash equivalents at end of period 4 749,329 685,224


Notes to the Financial Statements

1� CORPORATE INFORMATIONThe financial report of Habitat for Humanity Australia for the year ended 30 June 2010 was authorised for issue in accordance with a resolution of the Directors on 11 October 2010�

Habitat for Humanity Australia is a Company Limited by Guarantee incorporated in Australia�

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

2� SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of PreparationThis special purpose financial report has been prepared for distribution to the members to fulfil the Company’s financial reporting requirement’s under the Corporations Act 2001 and the Company’s constitution� The accounting policies used in the preparation of this financial report, as described below, are consistent with the financial reporting requirements of the Corporations Act 2001 and the Company’s constitution, and with previous years, and are, in the opinion of the National Board of Directors, appropriate to meet the needs of members:

(i) The financial report has been prepared on a historical cost basis except for loans to the Affiliates and former Affiliates which are measured at fair value�

(ii) The financial report is presented in Australian dollars�

(iii) The disclosure requirements of Accounting Standards and other financial reporting requirements in Australia do not have mandatory applicability to Habitat For Humanity Australia because it is not a ‘reporting entity’� However, management have prepared the financial report in accordance with Accounting Standards and other mandatory financial reporting requirements in Australia� Disclosure requirements have not been adopted with the exception of the following:

AASB 101: Presentation of Financial Statements AASB 107: Cash Flow StatementAASB 108: Accounting Policies, Changes in Accounting Estimates and ErrorsAASB 1048: Interpretation and Application of Standards

(b) Statement of ComplianceThe special purpose financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS)�

(c) Revenue recognitionRevenue is recognised to the extent that it is probable that the economic benefits will flow to the HFHA and the revenue can be reliably measured� The following specific recognition criteria must also be met before revenue is recognised:

(i) Cash contributions received or receivable are recognised as revenue when:

a� HFHA obtains control of the contribution or the right to receive contribution

b� it is probable that the economic benefits comprising the contribution will flow to the HFHA, and

c� the amount of the contribution can be measured reliably

Income is measured at the fair value of the contributions received or receivable�

(ii) HFHA receive restricted contributions from third parties under the following arrangements:

- Grants received from Habitat for Humanity International (HFHI) for the designated purpose such as for mass marketing�

- Grants received from Corporate Sponsors and Donors for the domestic and international projects�

- Grants received from individual donors for specific projects or countries�

Where the funds are restricted, the amounts received are recognised as deferred income until such time the funds are expensed on the designated project�


(iii) Income arising from the contribution of assets or services (gifts in kind) is recognised when all the following conditions have been satisfied:

a� HFHA obtains control of the contribution or the right to receive the contribution;

b� it is probable that the economic benefits comprising the contribution will flow to the HFHA; and

c� the amount of the contribution can be measured reliably

Income is measured at the fair vaule of the contributions received or receivable

(iv) Interest Finance income on financial assets is recognised as it accrues using the effective interest rate�

Interest income from banks is recognised as and when it accrues to the company�

(v) Global Village Voluntary hours contributed by the Global Village volunteers in building homes for the low income families in the Asia Pacific region have been translated into monetary terms by applying AusAID criteria� The total monetary value of the volunteer hours in 2010 is $193,523 This amount has not been recognised as income in the Income Statement�

(d) Program expensesTransfers to the overseas Partner Organisations (PO) are not recognised as expenses until financial reports are received and acquitted� Transfers to the domestic affiliates are recognised as an expense on transfer unlike in previous years when transfers were made as a loan arrangement� The program transfers to Australian affiliates during the financial year 2010 amounted to $ 373,864�

(e) Exchange gain/loss HFHA has the following policy with regards to exchange gain/loss:

a� In case of funds transferred by HFHA, the overseas PO convert the AUD into local currency using the rate prevailing on the day i�e� the money actually credited to their account by the bank

b� For the purpose of quarterly financial reports, the PO convert the local currency into AUD averaging the rate prevailing on the first day and last day of the month during the Quarter�

c� assets and liabilities for each balance sheet presented such as closing cash balance pending acquittal are translated at the closing rate at the date of that balance sheet�

(f) LeasesOperating lease payments are recognised as an expense in the income statement on a straight-line basis over the lease term �

(g) Cash and cash equivalentsCash and short-term deposits in the balance sheet comprise cash at bank and in hand�

(h) Trade and other receivablesTrade receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts�

An allowance for doubtful debts is made when there is objective evidence that the HFHA will not be able to collect the debts� Bad debts are written off when identified�

(i) Income taxHFHA has separate endorsements as an income tax exempt charitable entity for international and domestic funding and as such incurs no liability to pay income tax�

Notes to the Financial Statements (continued)


(j) Other taxesRevenues, expenses and assets are recognised net of the amount of GST except:

a� where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

b� receivables and payables are stated with the amount of GST included�

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet�

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority�

(k) Property, plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value�

Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:

Furniture – over 5 years Computer Hardware – over 3 1/3 years Computer Software – over 2 years

The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end�

(l) Trade and other payables

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the HFHA prior to the end of the financial year that are unpaid and arise when it becomes obliged to make future payments in respect of the purchase of these goods and services�

(m) Financial Assets and Liabilities

Financial assets and liabilities are initially recognised at fair value through the profit and loss account� After initial recognition, financial assets and liabilities are subsequently measured at amortised cost using the effective interest rate method� Gains and losses are recognised in profit or loss when financial assets and liabilities are derecognised or impaired� Financial assets and liabilities are classified as current when they are expected to be settled within twelve months from year end�

(n) Employee leave benefits

Wages, salaries and leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and long-service leave at the end of fiscal year are recognised in provisions in respect of employees’ services up to the period�

Notes to the Financial Statements (continued)


Notes to the Financial Statements (continued)June 2010

$June 2009

$3 REVENUE AND EXPENSES

a. Finance income

Notional Interest on Affiliate Loans 50,827 74,035

Bank Interest Received 15,898 25,111

Total finance income 66,725 99,146

b. Other income

Miscellaneous Income 15,138 32,294

Total other income 15,138 32,294

c. Depreciation expense

Depreciation of non-current assets

Furniture and fittings 1,342 972

Computers 1,525 2,436

Computers-software 14,974 14,974

Total depreciation expense 17,841 18,382

4 CASH AND CASH EQUIVALENTSCash at bank 748,829 684,724

Cash in hand 500 500

749,329 685,224

Cash at bank earns interest at floating rates based on daily bank deposit rates�

5 TRADE AND OTHER RECEIVABLESTrade receivables 299,482 266,219

Accrued Interest 1,484 -

Prepayments and Others 20,834 -

GST Receivables 20,959 18,412

342,759 284,631

6 FINANCIAL ASSETS: LOANS AND RECEIVABLESCurrent

Loans to Affiliates and former Affiliates 58,508 118,929

58,508 118,929

Non Current

Loans to Affiliates and former Affiliates 279,353 708,594

279,353 708,594

(i) Loans to affiliates and former affiliates are interest-free and unsecured�

(ii) Donations provided by HFHA corporate sponsors for housing projects to the Affiliates were treated as long-term loans until the prior year� From financial year 2010, the affiliates are required to only pay half of the monthly instalments of the loan� The balance of 50% has been forgiven by HFHA� The present value of the future forgiveness has been written off during the year�



$June 2009

$7 PROPERTY, PLANT AND EQUIPMENT

Computers

At cost 58,210 58,210

Accumulated depreciation (58,120) (56,595)

Net carrying amount 90 1,615

Computer Software

At cost 29,948 29,948


Net carrying amount - 14,974

Furniture

At Cost 6,709 6,709


Net Carrying amount 2,874 4,216

Total Plant and Equipment 2,964 20,805

8 TRADE AND OTHER PAYABLESTrade and other creditors 36,443 52,925

Habitat programs 22,620 3,038

59,063 55,963

Trade payables are non-interest bearing and are normally settled on 30-day terms� Other payables are non-interest bearing and have an average term of 30 days�

9 BORROWINGS Bank line of credit - 47,046

- 47,046

Bank line of credit account has a credit limit of $200,000�

10 PROVISIONSProvision for employee entitlements 25,796 35,782

11 DEFERRED REVENUEDonations received in relation to future projects 417,874 520,600

417,874 520,600

Refer to Notes to the Financial Statements para 2(c)�

12 EQUITY Balance at the beginning of the year 1,116,201 594,303

Excess of revenue over expenditure (246,723) 521,898

Balance at the end of the year 869,478 1,116,201



$June 2009

$13 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES

TO OPERATING SURPLUS AFTER INCOME TAXOperating (loss)/surplus after income tax (246,723) 521,898Adjustments for non-cash income and expense items:Depreciation expense 17,841 18,382Amortisation of lease incentives - 30,021Exchange loss 19,246 11,839Non monetary revenue (131,278) (130,631)Non monetary expenditure 131,278 96,135Imputed interest income on affiliate loans (50,827) (74,045)Loan write offs 166,952 -Increase in financial liability (1,157) -NPV charge on loan to affiliates 220,339 127,904Working capital adjustments:

(Increase)/decrease in trade and other receivables (76,477) (90,126)Increase/(decrease) in trade payables 3,100 (9,968)Increase/(decrease) in provisions (9,986) 1,793Increase/(decrease) in other payables 16,955 1,671Increase/(decrease) in deferred revenue (102,726) (157,931)

Net cash provided from operating activities (43,463) 346,942

14 EVENTS AFTER BALANCE SHEET DATEThere have been no significant events occurring after balance date which may affect either HFHA’s operations or results of those operations or HFHA’s state of affairs�

15 COMMITMENTS AND CONTINGENCIESOperating lease commitments – HFHA as lesseeHFHA have entered into commercial lease on its premises where it is not in the best interest of HFHA to purchase these assets�

The lease has a life of 36 months with renewal terms included in the contracts� Renewal is at the option of HFHA�

There are no restrictions placed upon the lessee by entering into this lease�

Future minimum rentals payable under the non-cancellable operating lease as at 30 June are as follows:

June 2010 $

June 2009 $

Within one year 68,354 84,510After one year but not more than five years 101,556 169,020More than five years - -

169,910 253,530

Contingent liabilitiesHFHA has indemnity guarantees in relation to its lease for a total amount of $ 61,406�

16 MEMBERS GUARANTEEHFHA has 182 members as at the end of the year, and there is no limit on the number of members allowed under the HFHA Constitution� All the directors are members of the HFHA Consititution�In the event of winding up of the HFHA, the members have no liability to contribute towards the payment of debts and liabilities of the Company or the cost, charges and expenses of the winding up of the Company except to the amount of unpaid membership fees�

Habit number one: Make a One-Off Donation

Make one-off donations to support an appeal of your choice� This way you can vary the amount to suit what you can afford at the time, with amounts fully tax deductible�

Habit number two: Become a HopeBuilder

Our HopeBuilders sign up for regular monthly donations of their choice from their bank account or credit card and are the backbone of our support�

Habit number three: Include us in your Will

Habitat for Humanity Legacy Builders have included us in their wills, knowing their contribution will go on to create an enduring legacy of hope, enabling some of the poorest families in the world to build safe and secure homes�

Habit number four: Volunteer

There’s nothing like getting your hands dirty to know you’re making a difference� Help build homes for families within Australia, or travel overseas with our Global Village program�

Habit number five: Become a Corporate Partner

By donating funding or building materials, a corporate partnership can provide your company with a unique opportunity to engage employees and get involved, while helping to build homes for families in need�

Habit number six: Fundraise

There are many ways you can help us raise funds and support our building program� Here are some ideas from recent

fund-raising activities: host a dinner party or trivia night, hold an auction or raffle, clear out your rubbish for cash with a garage sale, or ask your friend to sponsor you in an event and direct your funds to Habitat for Humanity Australia� Many companies like to support their employees’ fundraising efforts by matching the funds they raise, so you might like to ask your company to consider this�

Habit number seven: Get Involved

Contact your local Habitat for Humanity office and find out how you can help� You could gain or utilise skills by helping to build a home or volunteer your time to help out in our offices or promoting our various programs�

How to create a habit(at) for humanityIt’s easy to form good habits with Habitat for Humanity, Australia� If you believe in a world where everyone deserves a safe and decent place to live, your good habits can transform the lives of people here and around the world�

“Good habits build hope”


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For their assistance in producing the 2010 Annual Report, we would like to thank…

• Auditors - Ernst & Young• Design - Sensory Creative• Photographer - Belinda Mason• Report typeset in ‘Router’ courtesy

of Jeremy Mickel, mickeldesign�com • Assistant editor - Anna Le Masurier• Printers - Dobson’s Printing• Paper supplier - Raleigh Paper

This annual report is printed on ecoStar. ecoStar Coated is an environmentally responsible paper made carbon neutral. The greenhouse gas emissions of the manufacturing process including transportation of the finished product to Raleigh Warehouses has been measured by the Edinburgh Centre for Carbon Management (ECCM) and offset by the CarbonNeutral Company and the fibre source has been independently third party certified. ecoStar Coated is manufactured from 100% post consumer recycled paper in a process chlorine free environment under the ISO 14001, ISO 9001 & ISO 9706 environmental management systems. ecoStar Coated is European Eco-Label certified.

Habitat for Humanity AustraliaPO Box 1048 North Sydney NSW 2059

FreeCall: 1800 88 55 99 www.habitat.org.au

hfha annual report 2010

Documents